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Home My WebLink About20250505 - 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, May 5,2025 7:00 p.m. I.CALL TO ORDER II.PLEDGE OF ALLEGIANCE III.ROLL CALL IV.DETERMINATION OF QUORUM Proclamation: Veterans of Foreign Wars “Buddy Poppy” V.APPROVAL OF MINUTES Approve Minutes of the City Council workshop and regular meeting on April 21,2025. 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.Proclaim May 2025 as Building Safety Month 3.Approve Second Reading and Adoption:Ordinance Amendment –City Code Chapter 70.10 -Electric Assisted Vehicles 4.Approve Second Reading and Adoption: Ordinance Amendment –City Code Chapter 34 – Fees for Municipal Services 5.Resolution: Approve New On-Sale Intoxicating Liquor License Application by Flingin Pies, LLC dba Broadway Bar & Pizza -Hastings, 909 Vermillion St. 6.Approve 2025 Budget Amendment: City Hall Dome Restoration Project 7.Resolution:Approving the Application to the Minnesota Public Facilities Authority 8.Resolution:Providing for Competitive Negotiated Sale of $4,500,000 General Obligation Bonds, Series 2025A 9.Approve Municipal Advisory Service Agreement with Northland Securities, Inc. 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. 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 1.Conduct Public Hearing to Vacate, Rescind, Terminate, and Release the Permanent Storm Water Easement Recorded as Document No. 891566 2.Resolution: Awarding Contract for the 2025 Sanitary Sewer Lining Program 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 1.Resolution: Special Use Permit –Cannabis–Joshua R Bruns, Minneapolis Kombucha (215 Ramsey Street) 2.Resolution: Special Use Permit –Cannabis–Steve Benowitz (2103 Vermillion Street) 3.413 2nd Street W. –Fred Weiland a.Resolution: Variance –Side Yard Setback b.Resolution: Garage Move 4.Approve Program: Art Event Program Grant D.Public Safety E.Administration 1.PFAS Update XI.UNFINISHED BUSINESS XII.NEW BUSINESS XIII.REPORTS FROM CITY COMMITTEES, OFFICERS, COUNCILMEMBERS XIV.ADJOURNMENT Next Regular City Council Meeting: Monday, May 19, 2025 7:00 p.m. Proclamation Veterans of Foreign Wars “Buddy”® Poppy City of Hastings, Minnesota May 5, 2025 WHEREAS, At the end of World War I, The Veterans of Foreign Wars adopted the poppy as a symbol of freedom and the blood sacrificed by troops in wartimes. Poppies are worn and displayed as a symbolic tribute to our fallen and the future of living veterans and servicemembers; and WHEREAS, The annual distribution of Buddy Poppies by the Veterans of Foreign Wars of the United States has been officially recognized and endorsed by governmental leaders since 1922; and WHEREAS, the Buddy Poppy was registered with the United States Patent Office in February 1924. A certificate was issued on May 20, 1924, granting the VFW Organization all trademark rights in the name of Buddy under the classification of artificial flowers; and WHEREAS, The Buddy Poppy was adopted as the official memorial flower of the Veterans of Foreign Wars of the United States, as it remains today; and WHEREAS, The Buddy Poppy program provides financial assistance in maintaining state and national Veterans rehabilitation and service programs and partially supports the VFW National Home; and WHEREAS, The basic purpose of the annual distribution of Buddy Poppies by the Veterans of Foreign Wars is eloquently reflected in the desire to “Honor the Dead by Helping the Living”: THEREFORE, BE IT RESOLVED, that I, Mayor of the City of Hastings, do hereby urge the citizens of this community to recognize the merits of this cause by contributing generously to its support through your donations for Buddy Poppies on the day set for the distribution of these symbols of appreciation of the sacrifices of our honored dead. FURTHER, I urge all patriotic citizens to wear a Buddy Poppy as mute evidence of our gratitude to the men and women of this country who have risked their lives in defense of the freedoms which we continue to enjoy as American citizens. IN WITNESS WHEREOF, I hereunto set my hand and sign this proclamation on this 5th day of May, 2025. _____________________________ Mary D. Fasbender, Mayor Hastings, Minnesota City Council Workshop April 21, 2025 The City Council of the City of Hastings, Minnesota met in a workshop on Monday, April 21, 2025,at 5:30 p.m. in the Community Room at the Hastings City Hall, 101 East 4th Street, Hastings, Minnesota. Members Present:Mayor Fasbender, Councilmembers Beck, Haus, Lawrence, Pemble, and Vihrachoff Members Absent:Councilmember Leifeld Staff Present:City Administrator Dan Wietecha Assistant City Administrator Kelly Murtaugh Parks & Recreation Director Chris Jenkins Guests Present: Dr. Tammy Champa, Superintendent Carrie Tate, Chairperson Jessica Dressely, Vice Chairperson Mark Zuzek, Treasurer Melissa Millner, Clerk Kari Gorr, Dir of Comm Ed and Communications Mayor Fasbender called the workshop to order at 5:30 pm and welcomed council members, ISD 200 School Board members,and staff.Mayor Fasbender invited Chair Tate to lead the meeting. Wietecha reviewed historical and current City partnerships with the School District.Tate called upon Gorr to review the addendums A&B of the Joint Powers Agreement. Jenkins reviewed Addendums C & D related to the Joint Maintenance Facility and operational agreement for the facility. The City and District are co-owners of the facility. Tate provided an overview of the financial situation for the School District. There are many projects that ISD 200 is undertaking:the pathways program, expanding college in the schools, curriculum review, enhancing STEAM/STEM at elementary level, safe routes to schools programs, special election coming fall 2025, and searching for a new superintendent. Tate reviewed the financial picture for the district and the impact of falling enrollment, underfunded/unfunded mandates and the state financial projection. Mayor Fasbender reviewed financial impacts to the City. Fasbender indicated that PFAS mitigation will lead to significant increase in water rates to pay for the treatment plants. She noted that there will be a levy increase for 2026, citing union negotiations, a tight labor market in key areas, significant backlog in capital project of millions of dollars, and the upcoming Hwy 61 project. Fasbender indicated that it can be difficult for both entities to come together to discuss partnerships when both have financial struggles. Informal/Formal partnerships Wietecha outlined some of the current projects shared between the City and the District: Civic Arena, School Resource Officer,Joint Maintenance JPA, and Safe Routes to Schools. Some of these projects have led to less formal activities where the City and District have partnered. Both entities see these partnerships as a benefit to the community. Tate invited a brainstorming session for existing or new ideas. Some of the ideas discussed include: career exposure for students; cross-promoting school district and city topics;tap into existing events that impact/benefit both entities;improve on communication between Council and Board to learn about events or other info that is relevant to all; provide updates at Council or School Board meetings; explore a joint segment in the newspaper on regular basis. Tilden Community Center Champa indicated that the recent work on the JPAs and other related decisions need to be addressed.Gorr reviewed the success of the Senior Center at Tilden –the opportunities for seniors as well as the benefits to the community. The City has historically contributed funds that support the senior center programming. There was broad support for the importance of the program for the community, balanced by the financial realities for the City and District could impact the future of the senior center. Discussion around the annual cost for the senior center and other ways to financially support it going forward. Ice Arena Tate indicated that any District funds to support the arena must come from the general fund because the District does not own the building. Support of the arena will impact spending in other areas. Wietecha noted that there has been significant turnover on City Council and the School Board since the last discussion several years ago. The request from the City going forward would be similar to past agreements that reflect 30% District/70% City. The refrigeration system was a required update due to the changes in federal law regarding the original refrigerant used at the arena. The arena benefits the school district and the entire community. Both the City and District will need to consider options for a joint agreement and the impact on other operations. ADJOURNMENT Workshop adjourned at 6:55 p.m. __________________________________________________________ Mary D. Fasbender, Mayor Kelly Murtaugh, City Clerk 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 Hastings, Minnesota City Council Meeting Minutes April 21, 2025 The City Council of the City of Hastings, Minnesota met in a regular meeting on Monday, April 21, 2025 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 Beck,Haus,Lawrence, Pemble, and Vihrachoff Members Absent:Councilmember Leifeld Staff Present:City Administrator Dan Wietecha Assistant City Administrator Kelly Murtaugh City Attorney Greta Bjerkness Public Works Director Ryan Stempski City Engineer Cody Mathisen Presentation: MnDOT Update on Highway 61 Improvement Project Presentation: Housing Needs–Bowen National Research Approval of Minutes Mayor Fasbender asked if there were any additions or corrections to the minutes of the City Council workshop and regular meeting on April 7,2025. Minutes were approved as presented. Comments from the Audience Graham Johnson, 2838 Fremont Ave S, Minneapolis, noted that the Hastings Journal has launched a Community Calendar. Motion to add the first reading of the ordinance amendment increasing water rates to Administration. Haus motioned,Lawrence seconded. 6 Ayes, 0 Nays Consent Agenda Councilmember Pemble motioned to approve the Consent Agenda as amended, seconded by Councilmember Vihrachoff. 6 Ayes, 0 Nays 1.Pay Bills as Audited 2.Resolution No. 04-12-25: Approve In-Store Fireworks License for Coborn’s Marketplace (#2037), 225 33rd Street W. 3.Resolution No. 04-13-25: Approve In-Store Fireworks License for Walmart (#1472), 1752 North Frontage Rd. 4.Resolution No. 04-14-25: Approve Outdoor Tent Sales Fireworks License for Walmart #1472, 1752 North Frontage Rd. 5.Resolution No. 04-15-25: Approve New Off-Sale Liquor License for Z-Liquid LLC dba Ten- K Liquor, 1355 South Frontage Rd., Suite 330 6.Resolution No. 04-16-25: Approve New Retail Establishment Tobacco License for Z-Liquid LLC dba Ten-K Liquor, 1355 South Frontage Rd., Suite 330 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 7.Resolution No. 04-17-25: Accept Donation from Side by Side Ride to the Fire Department 8.Declare Surplus Property and Authorize for Public Sale, Donation, or Disposal –Fire Department 9.Approve Special Event Designation for the Gobble Gait 10.Approve Special Event Designation for the Historic Hastings Car Shows 11.Appoint Planning Commissioner –John Moes 12.Approve Quote: Architect Services for Lions Park Shelter 13.Resolution No. 04-18-25: Withdrawing Membership from Red Rock Corridor Commission 14.Resolution No. 04-19-25: Withdrawing Membership from Great River Rail Commission 15.Approve First Reading -Ordinance Amendment -Chapter 70.10 -Electric Assisted Vehicles 16.Approve Memorandum of Understanding: Public Works Lead Operator 17.Approve Participation in RFP for Privately Administered Minnesota Paid Family and Medical Leave Program Resolution No. 04-20-25: Receiving Bids and Awarding Contract for the 2025 Neighborhood Infrastructure Improvements Mathisen provided an overview of the 2025 Neighborhood Infrastructure Improvements. The City received seven bids for this project on April 11. Mathisen summarized the bids received, indicating the process of qualification review. The qualification review for Icon LLC determined their proposal score was only 5 (five) points, which did not meet the minimum score required to be qualified for the project. Staff also completed reference checks on the next lowest bidder, Northwest Asphalt, Inc. It was determined their proposal score exceeded the minimum score necessary to be considered qualified to perform the project and provided additional feedback from other municipalities. Council is being asked to move forward in adopting the resolution to award the contract to Northwest Asphalt, Inc. in the total amount of $3,103,992.20. Council discussion on gratitude for due diligence on evaluating bids and asked for clarification on the best value Statute. Mathisen shared additional information on the scoring which may include references from other cities. Mathisen indicated the City has had this system in place for nearly 20 years and specified disqualifying a contractor is rare. Councilmember Pemble motioned to approve as presented, seconded by Councilmember Haus. 6 Ayes, 0 Nays People Movement Plan Stempski provided an overview of the request to authorize the City to enter into a contract with HKGi to complete updates to the City’s People Movement Plan. Stempski provided background information on the grant opportunity and reviewed requirements to meet the Safe Streets for All (SS4A) action plan requirements which would require several key updates to the People Movement Plan. Staff recommends the City authorize work and fund the updates to the People Movement Plan to create a more competitive federal funding application. The estimated cost of services proposed by HKGi to update the People Movement Plan is $21.005, to be funded entirely by the City. Council discussion on ability to access grant funds for reimbursement. Stempski indicated that the City has to have a signed grant agreement with FHWA before proceeding with any reimbursement money; stating funds would not be reimbursable if the City moves forward with the project. Council posed questions on the impact of the updates on the Safe Streets for All (SS4A) and future grant applications.The key updates are expected to enhance the City’s plan, positioning it more competitively for upcoming funding opportunities.Stempski indicated the City is pursuing federal funding because the local unit of 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 government is required to be the applicant. Council posed questions on completion of the plan. Stempski shared the People Movement Plan is used to guide future projects within the City. Councilmember Vihrachoff motioned to approve as presented, seconded by Councilmember Haus. 3 Ayes, 3 Nays (Beck, Lawrence, Pemble)Motion failed. Strategic Plan: 1st Quarter Report Wietecha provided an overview of the 1st Quarter 2025 Report. Since the City is midway through the plan and several initiatives are completed, Wietecha recommended scheduling a summer or fall meeting to review in depth. Council discussion on supporting arranging time for review. First Reading: Ordinance Amendment: City Code Chapter 34: Fees for Municipal Services Wietecha introduced the first reading of the ordinance amendment for City Code Chapter 34, regarding fees for municipal services, specifically water rates. In December 2024, the City Council approved a ten percent (10%) increase in water rates effective January 1, 2025, noting an additional increase would likely be needed mid-year. In a City Council workshop on April 7, 2025, Council discussed finances for the upcoming project. Council favored financing the City’s share of construction with a loan through the Public Facilities Authority as well as delaying nitrates treatment from the Central Water Treatment Plant which would cut $3.1M from the project cost. Wietecha indicated nitrate levels in wells 3, 5, and 7 are at levels that require monitoring, but not in imminent need for treatments now. While continuing to seek outside funding, the construction schedule must move forward to meet the federal deadline for mitigation. It is anticipated that water rates will continue to increase significantly unless the city is successful in obtaining other funding. No Council discussion. Councilmember Haus motioned to approve as presented, seconded by Councilmember Lawrence. 5 Ayes, 1 Nay (Beck) Announcements •Celebrate birds and conservation at the Carpenter Nature Center with the Hastings Area Earth Day Birding Festival on Saturday, April 26. •Birds and Bison Bike Tour: Pedal 20 scenic miles along the Mississippi River Greenway on a guided tour to see sandhill cranes, bald eagles, and bison on May 3. •The Hootenany is being held in downtown Hastings on Saturday, April 26. Meetings •Public Safety Committee Meeting on Monday, April 28,2025 at 7:00 p.m. •Planning Commission Meeting on Monday, April 28, 2025 at 7:00 p.m. •City Council Workshop on Monday, May 5, 2025 at 5:30 p.m. •City Council Meeting on Monday, May 5,2025 at 7:00 p.m. Councilmember Pemble motioned to adjourn the meeting at 8:26 PM, seconded by Councilmember Haus. Ayes 6,Nays 0 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 _______________________________________________________ Kelly Murtaugh, City Clerk Mary D. Fasbender, Mayor City Council Memorandum To: Mayor Fasbender & City Council Members From: Ashley DeBernardi – Assistant Finance Manager Date: 05/01/2025 Item: Disbursements Council Action Requested: Staff requests: Council review of weekly routine disbursements issued 04/29/2025. Council approval of routine disbursements, capital purchases and employee reimbursements to be issued 05/06/2025. 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: Disbursement checks, ACH issued on 04/29/2025 $ 135,866.06 Disbursement checks, ACH to be issued on 05/06/2025 $ 189,013.27 Advisory Commission Discussion: N/A Council Committee Discussion: N/A Attachments:● Council Reports VIII-01 VIII-01 Council Report DEPARTMENT FUND VENDOR NAME DESCRIPTION AMOUNT Arena ARENA CINTAS CORPORATION NO 2 REPAIRS &MAINTENANCE -BLDG $40.67 Arena ARENA CINTAS CORPORATION NO 2 MEDICAL &FIRST AID $97.30 Arena ARENA CINTAS CORPORATION NO 2 MEDICAL &FIRST AID $146.42 Safety &Wellness GENERAL CINTAS CORPORATION NO 2 MEDICAL &FIRST AID $14.32 Vendor Total:$298.71 Water WATER HAWKINS INC CHEMICALS &CHEMICAL PRODUCTS $90.00 Vendor Total:$90.00 PW -Streets GENERAL ROAD EQUIPMENT PARTS CENTE MOTOR FUEL &OIL $6.65 PW -Streets GENERAL ROAD EQUIPMENT PARTS CENTE REPAIRS &MAINTENANCE -EQUIP $25.08 PW -Streets GENERAL ROAD EQUIPMENT PARTS CENTE MOTOR FUEL &OIL $23.57 Water WATER ROAD EQUIPMENT PARTS CENTE REPAIRS &MAINT-LINES $7.91 Vendor Total:$63.21 Admin GENERAL INNOVATIVE OFFICE SOLUTIONS OFFICE SUPPLIES ($12.74) Admin GENERAL INNOVATIVE OFFICE SOLUTIONS OFFICE SUPPLIES $25.21 Vendor Total:$12.47 PW -Streets GENERAL PRECISE MOBILE RESOURCE MG MAINTENANCE CONTRACTS $161.00 Vendor Total:$161.00 Parks Operations PARKS PIONEER MANUFACTURING CO.,I RECREATION SUPPLIES $588.00 Vendor Total:$588.00 Non-Departmental GENERAL Wl SUPPORT COLLECTIONS TRUS Remittance $92.31 Vendor Total:$92.31 Parks Operations PARKS HOMETOWN ACE HARDWARE SMALL TOOLS &EQUIPMENT $194.32 Parks Operations PARKS HOMETOWN ACE HARDWARE SMALL TOOLS &EQUIPMENT $105.98 Water WATER HOMETOWN ACE HARDWARE REPAIRS &MAINT-LINES $36.26 Vendor Total:$336.56 Non-Departmental GENERAL HASTINGS PROFESSIONAL FIREFI Remittance $1,571.68 Vendor Total:$1,571.68 PW -Streets GENERAL NAPA AUTO PARTS REPAIRS &MAINTENANCE -EQUIP $28.49 PW -Streets GENERAL NAPA AUTO PARTS REPAIRS &MAINTENANCE -EQUIP $34.99 PW -Streets GENERAL NAPA AUTO PARTS MOTOR FUEL &OIL $74.97 Vendor Total:$138.45 Parks Operations PARKS NAPA AUTO PARTS MISCELLANEOUS $18.58 Parks Operations PARKS NAPA AUTO PARTS REPAIRS &MAINTENANCE -VEHICLE $79.32 VIII-01 Council Report DEPARTMENT FUND VENDOR NAME DESCRIPTION AMOUNT Vendor Total:$97.90 Parks Operations PARKS TROPHIES PLUS DONATIONS $20.00 Vendor Total:$20.00 Police GENERAL GUARDIAN SUPPLY LLC CLOTHING &BADGES -RUNNING $543.94 Vendor Total:$543.94 Non-Departmental GENERAL VISION SERVICE PLAN INSURANC Remittance $6.10 Non-Departmental GENERAL VISION SERVICE PLAN INSURANC Remittance $390.12 Vendor Total:$396.22 Water WATER VAN METER INC LICENSE FEES $562.52 Vendor Total:$562.52 Fire FIRE &AMBULA DAKOTA 911 DISPATCH CONTRACT-COUNTY $17,190.67 Police GENERAL DAKOTA 911 DISPATCH CONTRACT-COUNTY $34,381.33 Vendor Total:$51,572.00 Storm STORM WATER LANDBRIDGE ECOLOGICAL,INC.UPKEEP OF GROUNDS $3,032.50 Vendor Total:$3,032.50 General Facility Mai GENERAL IMPERIAL DADE VACUUM BAGS $70.80 Vendor Total:$70.80 IT-FINANCE GENERAL EZLEASE EZLEASE-CLOUD 3/2025-3/2026 $3,000.00 Vendor Total:$3,000.00 Parks Operations PARKS RIES FARMS LLC UPKEEP OF GROUNDS $115.25 Vendor Total:$115.25 Parks Operations PARKS A J SRUBAS MUSIC DONATIONS $800.00 Vendor Total:$800.00 Police GENERAL BALLISTIC DEFENSE LLC CONFERENCE &SCHOOLS $450.00 Vendor Total:$450.00 Aquatics AQUATIC CENTE POOL FURNITURE SUPPLY POOL DECK FURNITURE $16,596.60 Vendor Total:$16,596.60 PW -Streets GENERAL PREMIER TRUCK GROUP REPAIRS &MAINTENANCE -EQUIP $64.56 Vendor Total:$64.56 Ambulance FIRE &AMBULA EVOLUTION AUTO SERVICE REPAIRS &MAINTENANCE -VEHICLE $175.99 Vendor Total:$175.99 VIII-01 Council Report DEPARTMENT FUND VENDOR NAME DESCRIPTION AMOUNT Parks Operations PARKS FITZGERALD EXCAVATING &TRU MISS RIVER ERROSION REPAIR PAY $9,226.25 Vendor Total:$9,226.25 Ambulance FIRE &AMBULA BOUND TREE MEDICAL LLC MEDICAL &FIRST AID $201.12 Vendor Total:$201.12 Parks Operations PARKS CHEMSEARCH CHEMICALS &CHEMICAL PRODUCTS $357.95 Vendor Total:$357.95 Building Inspections GENERAL DOWNTOWN TIRE &AUTO REPAIRS &MAINTENANCE -VEHICLE $48.29 Vendor Total:$48.29 Aquatics AQUATIC CENTE W.W.GRAINGER,INC.FLUSH VALVE ASSEMBLY ($191.75) Aquatics AQUATIC CENTE W.W.GRAINGER,INC.VACUUM BREAKER ASSEMBLY $54.51 Aquatics AQUATIC CENTE W.W.GRAINGER,INC.FLUSH VALVE ASSEMBLY $54.51 General Facility Mai GENERAL W.W.GRAINGER,INC.FLUSH VALVE ASSEMBLY $191.75 City Hall Building GENERAL W.W.GRAINGER,INC.AUTO BLOW DOWN $115.70 Police Building GENERAL W.W.GRAINGER,INC.AUTO BLOW DOWN $2.71 General Facility Mai GENERAL W.W.GRAINGER,INC.WATER CLOSET ASSEMBLY $212.65 Parks Operations PARKS W.W.GRAINGER,INC.CREDIT FOR SHROUD ($71.52) Parks Operations PARKS W.W.GRAINGER,INC.REPAIRS &MAINTENANCE -BLDG $26.15 Vendor Total:$394.71 Parks Operations PARKS GRAPHIC DESIGN GENERAL NOTICES &PUBLIC INFO $80.00 Parks Operations PARKS GRAPHIC DESIGN GENERAL NOTICES &PUBLIC INFO $121.00 Parks Operations PARKS GRAPHIC DESIGN GENERAL NOTICES &PUBLIC INFO $121.00 Parks Operations PARKS GRAPHIC DESIGN GENERAL NOTICES &PUBLIC INFO $117.00 Vendor Total:$439.00 Arena ARENA HILLYARD INC CLEANING SUPPLIES $168.42 Vendor Total:$168.42 Parks Operations PARKS HOFFMAN-MCNAMARA DONATIONS $298.00 Vendor Total:$298.00 HEDRA HEDRA HOISINGTON KOEGLER GROUP EXPERT &CONSULTANT $285.40 Parks Capital PARKS CAPITAL HOISINGTON KOEGLER GROUP CONTRACTORS &CONSTRUCTION $15,138.80 Vendor Total:$15,424.20 Non-Departmental GENERAL L.E.L.S.Remittance $2,044.00 Vendor Total:$2,044.00 Non-Departmental GENERAL LOCAL UNION 49 Remittance $700.00 VIII-01 Council Report DEPARTMENT FUND VENDOR NAME DESCRIPTION AMOUNT Vendor Total:$700.00 Non-Departmental GENERAL LOCAL 320 Remittance $388.00 Vendor Total:$388.00 Fire FIRE &AMBULA MACQUEEN EQUIPMENT,INC.CLOTHING &BADGES $6,178.43 Vendor Total:$6,178.43 Wastewater Water WASTEWATER WATER METROPOLITAN COUNCIL ENVIR METROPOLITAN COUNCIL ENVIR REPAIRS &MAINT-LINES REPAIRS &MAINT-LINES $475.00 $525.00 Vendor Total:$1,000.00 Parks Operations PARKS MIRACLE RECREATION EQUIPME UPKEEP OF GROUNDS $1,162.82 Vendor Total:$1,162.82 Non-Departmental GENERAL MN NCPERS GROUP LIFE C/O ME Remittance $64.00 Vendor Total:$64.00 Arena ARENA R &R SPECIALTIES,INC.REPAIRS &MAINTENANCE -EQUIP $45.00 Vendor Total:$45.00 PW -Street Lights GENERAL CITY OF ST PAUL REPAIRS &MAINTENANCE -EQUIP $340.00 PW -Street Lights GENERAL CITY OF ST PAUL REPAIRS &MAINTENANCE -EQUIP $38.40 Vendor Total:$378.40 Aquatics AQUATIC CENTE STATE SUPPLY CO MIXER GAGE $63.97 Vendor Total:$63.97 PW -Streets GENERAL TERRYS HARDWARE,INC.STREET MAINTENANCE MATERIAL $13.90 PW -Streets GENERAL TERRYS HARDWARE,INC.REPAIRS &MAINTENANCE -EQUIP $5.32 General Facility Mai GENERAL TERRYS HARDWARE,INC.THREADLOCKER,WASAHER,SCREWS $59.21 General Facility Mai GENERAL TERRYS HARDWARE,INC.DRILL AND PLEXI GLASS $267.63 General Facility Mai GENERAL TERRYS HARDWARE,INC.GLOVES $20.99 Police Building GENERAL TERRYS HARDWARE,INC.GLOVES $6.99 Parks Operations PARKS TERRYS HARDWARE,INC.REPAIRS &MAINTENANCE -EQUIP $8.78 Parks Operations PARKS TERRYS HARDWARE,INC.SMALL TOOLS &EQUIPMENT $114.97 Parks Operations PARKS TERRYS HARDWARE,INC.LANDSCAPING MATERIALS $448.00 Parks Operations PARKS TERRYS HARDWARE,INC.MISCELLANEOUS $7.06 Vendor Total:$952.85 Police Building GENERAL TRANE PARTS CENTER ANNUAL AIR CONDITIONER MAINTENA $3,985.00 Vendor Total:$3,985.00 Non-Departmental GENERAL UNITED WAY OF HASTINGS Remittance $205.78 VIII-01 Council Report DEPARTMENT FUND VENDOR NAME DESCRIPTION AMOUNT Vendor Total:$205.78 Arena ARENA VIKING AUTOMATIC SPRINKLER REPAIRS &MAINTENANCE -BLDG $2,150.00 Vendor Total:$2,150.00 Parks Operations PARKS WEBBER RECREATIONAL DESIGN DONATIONS $9,021.00 Vendor Total:$9,021.00 Non-Departmental WATER GROTH TIM Overpayment $2.36 Non-Departmental WATER SVOBODA KIMM Overpayment $110.66 Non-Departmental WATER WIECHMANN BRAD/NANCY Overpayment $5.18 Vendor Total:$118.20 GRAND TOTAL:$135,866.06 APPROVED BY: APPROVED BY: APPROVED BY: Council Report DEPARTMENT FUND VENDOR NAME DESCRIPTION AMOUNT Water WATER CINTAS CORPORATION NO 2 OTHER GENERAL SUPPLIES $33.94 Vendor Total:$33.94 Legal GENERAL RATWIK ROSZAK & MALONEY, P.A PROF SERVICES-MAR 25 $117.00 Vendor Total:$117.00 PW - Streets GENERAL ROAD MACHINERY & SUPPLIES C REPAIRS & MAINTENANCE - EQUIP $928.27 Vendor Total:$928.27 PW - Streets GENERAL ROAD EQUIPMENT PARTS CENTE MOTOR FUEL & OIL $33.62 Vendor Total:$33.62 PW - Streets GENERAL MIDWAY FORD COMPANY MOTOR VEHICLES $65,710.39 Vendor Total:$65,710.39 Police GENERAL TRANSLANGUAGES LLC EXPERT & CONSULTANT $500.00 Vendor Total:$500.00 Police GENERAL YOUNG, PAUL CONFERENCE & SCHOOLS $238.00 Vendor Total:$238.00 Fire FIRE & AMBULA HOMETOWN ACE HARDWARE MOTOR FUEL & OIL $50.17 Parks Operations PARKS HOMETOWN ACE HARDWARE REPAIRS & MAINTENANCE - EQUIP $26.03 Parks Operations PARKS HOMETOWN ACE HARDWARE SMALL TOOLS & EQUIPMENT $54.08 Parks Operations PARKS HOMETOWN ACE HARDWARE UPKEEP OF GROUNDS $28.62 Vendor Total:$158.90 Police Building GENERAL RF GARAGE DOOR LLC 20 GARAGE DOOR OPENERS $1,300.00 PW Cold Storage Bu GENERAL RF GARAGE DOOR LLC REPLACED EYES $205.00 Police Building GENERAL RF GARAGE DOOR LLC REPLACED BOTTOM PANEL 3RD DOOR $510.00 Police Building GENERAL RF GARAGE DOOR LLC REPLACED 3 GARAGE DOOR OPENERS $3,870.00 Vendor Total:$5,885.00 Parks Operations PARKS TWIN CITIES INFLATABLES RECREATION SUPPLIES $957.94 Vendor Total:$957.94 PW - Streets GENERAL NAPA AUTO PARTS REPAIRS & MAINTENANCE - EQUIP $7.59 PW - Streets GENERAL NAPA AUTO PARTS MOTOR FUEL & OIL $20.23 PW - Streets GENERAL NAPA AUTO PARTS MOTOR FUEL & OIL $130.99 Water WATER NAPA AUTO PARTS MOTOR FUEL & OIL $10.44 Water WATER NAPA AUTO PARTS MOTOR FUEL & OIL $65.97 Vendor Total:$235.22 Water WATER CORE & MAIN LP CONTRACTORS & CONSTRUCTION $33,300.00 VIII-01 Council Report DEPARTMENT FUND VENDOR NAME DESCRIPTION AMOUNT Water WATER CORE & MAIN LP MODEM - AMI TOWER PROJECT $900.00 Vendor Total:$34,200.00 City Clerk GENERAL MCFOA OF MN MCFOA REGION IV MEETING 06.10.2 $30.00 Vendor Total:$30.00 Police GENERAL GUARDIAN SUPPLY LLC CLOTHING & BADGES $104.98 Vendor Total:$104.98 IT-CITY CLERK GENERAL CIVICPLUS, LLC MAINTENANCE CONTRACTS $3,885.00 Vendor Total:$3,885.00 IT-FINANCE GENERAL BS & A SOFTWARE MAINTENANCE CONTRACTS $2,500.00 Vendor Total:$2,500.00 Ambulance FIRE & AMBULA DIGITECH COMPUTER LLC EXPERT & CONSULTANT $9,970.79 Vendor Total:$9,970.79 Police GENERAL ATEC LLC MOTOR VEHICLES $494.87 Vendor Total:$494.87 Arena ARENA INBYLT, LLC ARENA PROJECT PAY APP 17 $12,821.00 Vendor Total:$12,821.00 PW - Streets GENERAL CARGILL INCORPORATED CHEMICALS & CHEMICAL PRODUCTS $39,111.21 Vendor Total:$39,111.21 Debt Service 2015A GO DEBT DAKOTA COUNTY PROPERTY RE 2025 ASSESSMENT MAINTENANCE $34.80 Debt Service 2016A GO DEBT DAKOTA COUNTY PROPERTY RE 2025 ASSESSMENT MAINTENANCE $98.60 Debt Service 2017A GO DEBT DAKOTA COUNTY PROPERTY RE 2025 ASSESSMENT MAINTENANCE $127.60 Debt Service 2018A GO DEBT DAKOTA COUNTY PROPERTY RE 2025 ASSESSMENT MAINTENANCE $237.80 Debt Service 2019A GO DEBT DAKOTA COUNTY PROPERTY RE 2025 ASSESSMENT MAINTENANCE $603.20 Debt Service 2020A GO DEBT DAKOTA COUNTY PROPERTY RE 2025 ASSESSMENT MAINTENANCE $377.00 Debt Service 2021A GO DEBT DAKOTA COUNTY PROPERTY RE 2025 ASSESSMENT MAINTENANCE $255.20 Debt Service 2022A GO DEBT DAKOTA COUNTY PROPERTY RE 2025 ASSESSMENT MAINTENANCE $701.80 Debt Service 2023A GO DEBT DAKOTA COUNTY PROPERTY RE 2025 ASSESSMENT MAINTENANCE $174.00 Debt Service 2024A GO DEBT DAKOTA COUNTY PROPERTY RE 2025 ASSESSMENT MAINTENANCE $1,070.80 Wastewater WASTEWATER DAKOTA COUNTY PROPERTY RE 2025 ASSESSMENT MAINTENANCE $42.40 Water WATER DAKOTA COUNTY PROPERTY RE 2025 ASSESSMENT MAINTENANCE $1,478.60 Vendor Total:$5,201.80 Parks Operations PARKS GERLACH OUTDOOR POWER EQ RENTAL/LEASE EXPENSE $250.00 Vendor Total:$250.00 VIII-01 Council Report DEPARTMENT FUND VENDOR NAME DESCRIPTION AMOUNT Parks Operations PARKS W.W. GRAINGER, INC.ELKAY SHROUD $71.52 Vendor Total:$71.52 HEDRA HEDRA HINZMAN, JOHN MILEAGE $108.92 Vendor Total:$108.92 Parks Operations PARKS HOFFMAN-MCNAMARA DONATIONS $298.00 Vendor Total:$298.00 Hydro HYDRO ELECTRI K R WEST CO INC.REPAIRS & MAINTENANCE - EQUIP $1,721.17 Vendor Total:$1,721.17 Water WATER MCNAMARA, WILLIAM SAFETY BOOTS $197.99 Vendor Total:$197.99 Non-Departmental TIF 9 BLOCK 28 CENTERPOINT ENERGY OTHER PROFESSIONAL SERVICES $150.31 Vendor Total:$150.31 Ambulance FIRE & AMBULA PJS AND ASSOCIATES INCORPOR MEDICAL & FIRST AID $330.46 Vendor Total:$330.46 Ambulance FIRE & AMBULA LINDE GAS & EQUIPMENT INC.CHEMICALS & CHEMICAL PRODUCTS $813.92 Ambulance FIRE & AMBULA LINDE GAS & EQUIPMENT INC.CHEMICALS & CHEMICAL PRODUCTS $219.25 Ambulance FIRE & AMBULA LINDE GAS & EQUIPMENT INC.CHEMICALS & CHEMICAL PRODUCTS $190.36 Vendor Total:$1,223.53 Non-Departmental TIF 9 BLOCK 28 PRECISION LANDSCAPING & CON OTHER PROFESSIONAL SERVICES $65.00 Vendor Total:$65.00 PW - Streets GENERAL TERRYS HARDWARE, INC.OTHER GENERAL SUPPLIES $20.98 City Hall Building GENERAL TERRYS HARDWARE, INC.FLEX $8.70 City Hall Building GENERAL TERRYS HARDWARE, INC.TUBING AND FITTINGS $62.96 City Hall Building GENERAL TERRYS HARDWARE, INC.VBELT AND GLUE $14.78 Vendor Total:$107.42 PW - Streets GENERAL NUSS TRUCK & EQUIPMENT REPAIRS & MAINTENANCE - EQUIP $397.32 Vendor Total:$397.32 LeDuc LEDUC HISTORI VIKING AUTOMATIC SPRINKLER ANNUAL SPRINKLER TESTING $680.00 Vendor Total:$680.00 Fire FIRE & AMBULA VOLUNTEER BENEFIT ASSN.DUES,SUBSCRIPTIONS,MEMBERSHIPS $200.00 Vendor Total:$200.00 VIII-01 Council Report DEPARTMENT FUND VENDOR NAME DESCRIPTION AMOUNT Wastewater WASTEWATER ZIEGLER, INC.REPAIRS & MAINT-LINES $70.61 Wastewater WASTEWATER ZIEGLER, INC.REPAIRS & MAINT-LINES ($36.06) Wastewater WASTEWATER ZIEGLER, INC.REPAIRS & MAINT-LINES $59.15 Vendor Total:$93.70 GRAND TOTAL:$189,013.27 APPROVED BY: APPROVED BY: APPROVED BY: VIII-01 Not Proclamation Building Safety Month –May 2025 WHEREAS,the City of Hastings is committed to recognizing that our growth and strength depends on the safety and essential role our homes, buildings, and infrastructure play, both in everyday life and when disasters strike, and; WHEREAS, our confidence in the resilience of these buildings that make up our community is achieved through the devotion of vigilant guardians –building safety and fire prevention officials, architects, engineers, builders, tradespeople, design professionals, laborers, plumbers and other in the construction industry –who work year-round to ensure the safe construction of buildings, and; WHEREAS, these guardians are dedicated members of the International Code Council, a nonprofit that brings together local, state, territorial, tribal and federal officials who are experts in the built environment to create and implement the highest-quality codes to protect us in the buildings where we live, learn, work and play, and; WHEREAS, these modern building codes include safeguards to protect the public from hazards such as hurricanes, snowstorms, tornadoes, wildland fires, floods and earthquakes, and; WHEREAS, Building Safety Month is sponsored by the International Code Council to remind the public about the critical role of our communities’ largely unknown protectors of public safety –our local officials –who assure us of safe, sustainable and affordable buildings that are essential to our prosperity, and; WHEREAS, “Game On!,” the theme for Building Safety Month 2025, encourages us all to raise awareness about building safety on a personal, local and global scale, and; WHEREAS, each year, in observance of Building Safety Month, people all over the world are asked to consider the commitment to improve building safety, resilience and economic investment at home and in the community, and to acknowledge the essential service provided to all of us by local, state, tribal, territorial, and federal building safety, fire prevention departments,in protecting lives and property. NOW, THEREFORE, I, Mary D. Fasbender, Mayor of the City of Hastings, do hereby proclaim the month of May 2025 as Building Safety Month. Accordingly, I encourage our citizens to join us as we participate in Building Safety Month activities. _________________________________ Mary D. Fasbender, Mayor VIII-02 —SAFETY MONTH City Council Memorandum To: Mayor Fasbender and City Council Members From:David Wilske, Chief of Police Date:May 5, 2025 Item:2nd Reading –E-Bike Ordinance adoption and bike trail speed limit update Council Action Requested: Approve the 2nd Reading and adopt the E-Bike Ordinance (70.10) and updated speed limit for bicycles on Hastings Trails (94.04 and 94.09). Background Information: The Hastings City Council requested the Public Safety Advisory Commission (PSAC) review and provide recommendations to the council regarding electric Assisted Bicycle use in the City of Hastings. PSAC completed their review and presented it to Hastings City Council.The PSAC also recommended reducing the speed limit on bike trails from 20 mph to 15 mph, which is identified in ordinance 94.04 and 94.09. Reducing the speed limit would align with the Dakota County trail speed limits and reduce incidents on the bicycle trails. The Hastings City Council generally supported these recommended changes to City Ordinances during discussion. The Hastings City Attorney drafted ordinance 70.10 for review based off recommendations from PSAC. Ordinances 70.10, 94.04 and 94.09 are included in your packets for review. Financial Impact: None Advisory Commission Discussion: None Council Committee Discussion: None Attachments: Ordinance 70.10 Ordinance 94.04 Ordinance 94.09 VIII-03 ORDINANCE NO. ___________ AN ORDINANCE FOR THE CITY OF HASTINGS, MINNESOTA, ENACTING HASTINGS CITY CODE CHAPTER 70.10 –ELECTRIC-ASSISTED BICYCLES The City Council of the City of Hastings, Dakota County, Minnesota, does hereby ordain as follows: SECTION 1. ENACTMENT. The Code of the City of Hastings, County of Dakota, State of Minnesota, Chapter 70.10, regarding electric-assisted bicycles shall be enacted as follows: 70.10 Electric Bicycles A.Purpose. The purpose of this section is to authorize the operation of electric-assisted bicycles on designated city streets in the City of Hastings pursuant to the authority given to the city by Minn. Stat. § 169.011, as it may be amended from time to time, now in effect. B.Definitions. For the purpose of this section, the following definitions shall apply unless the context clearly indicates or requires a different meaning. 1.Electric-assisted bicycle.As used in this chapter shall have the meaning specified in Minn. Stat. § 169.011, subd. 27, as amended. C.Designated Streets. A person shall be allowed to ride an electric-assisted bicycle on all city streets in the City of Hastings. D.Traffic Laws Apply. Every person riding an electric-assisted bicycle upon a roadway shall be granted all of the rights and shall be subject to all of the duties applicable to the driver of a vehicle by this chapter, except as to the special regulations in this chapter and except as those provisions of this chapter which by their nature have no application. E.Operation Requirements. 1.Single File, Right Hand Lane. No person shall ride an electric-assisted bicycle on the portion of any right of way of any street, except single file, on the most right-hand lane when available for traffic or as close as practical to the right- hand curb or edge of the roadway, except when passing a vehicle stopped in that lane. 2.Speed Limit. The speed limit should apply as follows: a.No person shall ride an electric-assisted bicycle at a speed above the posted speed limit on any given city street or roadway. VIII-03 b.No person shall ride an electric-assisted bicycle on City of Hastings Park and Bike trails at a speed in excess of fifteen (15) miles per hour. 3.Sidewalks and Paved Walkways. No person shall ride an electric-assisted bicycle on public sidewalks except when necessary to enter or leave adjacent property. 4.Permit Not Required. A permit is not required to be obtained from the City for a person to ride an electric-assisted bicycle in the City of Hastings. 5.Age Requirement.Any person who desires to ride an electric-assisted bicycle pursuant to this section must be at least fifteen (15) years of age in accordance with Minnesota law. 6.Lighting and Brake Equipment. All electric-assisted bicycles being operated in the City of Hastings pursuant to this section shall be equipped with a proper working lamp on the front which shall emit a white light visible from a distance of at least 500 feet to the front and a proper working lamp emitting a red light visible from a distance of 500 feet to the rear. F.Recommended Equipment. It is recommended that a person riding an electric-assisted bicycle wear a helmet and eye protection, however, it is not required. G.Insurance. It is recommended that a person riding an electric-assisted bicycle obtain any applicable insurance policies, however, it is not required. H.Violations. Any person violating the terms of this section shall, upon conviction for any such violation, be found guilty of a misdemeanor and punished through the fines and penalties established in city code. Violations of this code may also result in traffic citations. SECTION 2. SUMMARY PUBLICATION. Pursuant to Minnesota Statutes Section 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 adopted by the Hastings City Council on _________________, 2025 enacts a City Ordinance to allow the City to regulate electric-assisted bicycles. SECTION 3. 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 _______________, 2025. VIII-03 Attest: ________________________________________________________ Mary D. Fasbender, Mayor Kelly Murtaugh, City Clerk VIII-03 ORDINANCE NO. ___________ AN ORDINANCE FOR THE CITY OF HASTINGS, MINNESOTA, AMENDING HASTINGS CITY CODE CHAPTERS 94.04 –VEHICLES AND 94.09 –UNLAWFUL ACTS The City Council of the City of Hastings, Dakota County, Minnesota, does hereby ordain as follows: SECTION 1. AMENDMENT. The Code of the City of Hastings, County of Dakota, State of Minnesota, Chapters 94.04 and 94.09, regarding speed limits in parks and on trails shall be amended as follows: 94.04 Vehicles It is unlawful to drive, park, or leave a motorized vehicle, including a motorized recreational vehicle on park property, public recreational trails, or public athletic fields, except in areas designated by the City, within the posted speed limits. If no speed limit is posted, then no motorized vehicle may exceed 20 15 mph. Public safety and maintenance vehicles, and vehicles of contractors engaged by the City or the County are exempt form from the provisions of this subsection. 94.09 Unlawful Acts It is unlawful in any park or person to: 1.Bring into, use or discard any glass or glass containers in a City park. 2.Build or maintain a recreational fire in any park except in places or facilities provided by the City. 3.Disturb or interfere with any birds, animals, animal habitat, or nesting area in a park. 4.Damage, remove, alter, injure or destroy park property, including natural resources. 5.Be in possession of any explosive or other similar device, unless authorized in writing by the City. 6.Discharge any pollutants into any body of water in any park. 7.Feed waterfowl. 8.Vaporize or smoke nicotine, tobacco or cannabis products. A violation of this subsection shall be a petty misdemeanor with a fine of $100. 9.Ride any vehicle on trails at speeds in excess of 20 15 mph. SECTION 2: SUMMARY PUBLICATION. Pursuant to Minnesota Statutes Section 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 amendments adopted by the Hastings City Council on ______________, 2025 amends the City Ordinance regulating the speed limit of motorized vehicles in City Parks. VIII-03 SECTION 3: 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 _____________, 2025. Passed this ______ day of _______________, 2025. Attest: ________________________________________________________ Mary D. Fasbender, Mayor Kelly Murtaugh, City Clerk VIII-03 City Council Memorandum To:Mayor Fasbender & City Councilmembers From:City Administrator Dan Wietecha Date:May 5, 2025 Item:Water Rates Council Action Requested: Second Reading and Adoption of attached ordinance increasing water rates by 10% effective July 1, 2025. Background Information: The City has worked with Northland Securities to project the financial impact of constructing and maintaining three water treatment plants to remove PFAS and nitrates from our drinking water. In December 2024, the City Council approved a 10% increase in water rates (3.5% to cover general inflation and operations and 6.5% toward the PFAS/Nitrates project) and noted that an additional increase would likely be needed mid-year, depending on funds from the East Metro 3M Settlement, other grants, and anticipated construction costs. During its workshop April 7, the City Council discussed finances for the upcoming project. The City Council favored financing the City’s share of construction (estimate $8.4M) with a Drinking Water Revolving Fund loan through the Public Facilities Authority. This low-interest loan will save nearly $1M in interest costs over the next 20 years, compared to the City issuing bonds for the project. The City Council favored pulling the nitrates treatment from central WTP. If we build the “footprint” to provide space in the building to later add the treatment system, we can cut $3.1M from the project cost. The nitrate levels in these wells (3, 5, and 7) are at levels that require monitoring, and we currently do partial treatment on wells 3 and 5, but are not in imminent need for nitrates treatment now. VIII-04 The City Council favored an additional 10% water rate increase effective July 1. This covers our current projected gap as well as provides some cushion for uncertainty.Without additional outside funds, additional significant increases are anticipated each of the next three years. Financial Impact: Additional revenue to cover projected debt service Commission Discussion: Not applicable Attachments: Ordinance, First Reading VIII-04 SECOND READING CITY OF HASTINGS, MINNESOTA ORDINANCE NO. 2025-______ AN ORDINANCE OF THE CITY OF HASTINGS,MINNESOTA AMENDING CHAPTER 34 OF THE HASTINGS CITY CODE PERTAINING TO FEES FOR MUNICIPAL SERVICES BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF HASTINGS, Chapter 34 of the Hastings City Code regarding water rates is hereby amended as follows: Fee Schedule Public Works Fee Changes Current Proposed Water Base Charges 5/8” & ¾” Meter $22.88 $25.17 1.0”Meter $57.20 $62.92 1.25”&1.5”Meter $114.42 $125.86 2.0”Meter $183.06 $201.37 3.0” Meter $343.26 $377.59 4.0” Meter $740.20 $814.22 6.0” Meter $1,601.78 $1,761.96 Irrigation Base Charges 5/8” & ¾” Meter $45.76 1.0”Meter $114.40 1.25”&1.5”Meter $228.84 2.0”Meter $366.12 3.0” Meter $686.52 4.0” Meter $1,480.20 6.0” Meter $3,203.56 $50.34 $125.84 $251.72 $402.74 $755.18 $1,628.44 $3,523.92 Water Consumption Residential Users (applies all year) 0 –15,999 gallons $1.38/1,000 gallons $1.52/1,000 gallons 16,000 –30,999 gallons $1.78/1,000 gallons $1.96/1,000 gallons 31,000 –60,999 gallons $2.87/1,000 gallons $3.16/1,000 gallons 61,000 gallons and above $5.45/1,000 gallons $6.00/1,000 gallons VIII-04 Other Users 0 –15,999 gallons $1.38/1,000 gallons $1.52/1,000 gallons 16,000 –75,999 gallons $1.78/1,000 gallons $1.96/1,000 gallons 76,000 –200,999 gallons $2.87/1,000 gallons $3.16/1,000 gallons 201,000 gallons and above $5.45/1,000 gallons $6.00/1,000 gallons Moved by Councilmember ______________,seconded by Councilmember ______________to adopt the ordinance as presented. Adopted by the Hastings City Council on this ______ day of May 2025, by the following vote: Ayes: Nays: Absent: CITY OF HASTINGS ___________________________ Mary D. Fasbender, Mayor Attest: ___________________________ Kelly Murtaugh, City Clerk VIII-04 City Council Memorandum To:Mayor Fasbender &City Council Members From:Emily King, Deputy City Clerk Date:May 5, 2025 Item:Consider New Liquor License Request for Flingin Pies, LLC dba Broadway Bar & Pizza, 909 Vermillion St. Council Action Requested: Approve the attached resolution approving the application from Flingin Pies, LLC dba Broadway Bar & Pizza, 909 Vermillion St.for an On-Sale, Sunday Intoxicating Liquor License. Background Information: Randall Winger, Flingin Pies, LLC dba Broadway Bar & Pizza, 909 Vermillion St.,submitted an On-Sale, Sunday Intoxicating Liquor License application to be able to sell intoxicating liquor on-sale.The approved license application will be active through June 30, 2025. Financial Impact: N/A Advisory Commission Discussion: N/A Council Committee Discussion: N/A Attachments: •Resolution VIII-05 CITY OF HASTINGS DAKOTA COUNTY,MINNESOTA RESOLUTION ___________ RESOLUTION APPROVING ON-SALE, SUNDAY LIQUOR LICENSE FROM FLINGIN PIES, LLC DBA BROADWAY BAR & PIZZA, 909 VERMILLION ST. WHEREAS,Randall Winger, Flingin Pies, LLC dba Broadway Bar & Pizza, 909 Vermillion St.has applied for an On-Sale, Sunday liquor license and successfully passed the background check conducted by the Hastings Police Department; and WHEREAS, all necessary paperwork and documents have been completed and submitted, and the associated fees have been paid. NOW,THEREFORE,BE IT RESOLVED by the City Council of the City of Hastings that the On-Sale, Sunday Liquor License for Flingin Pies, LLC dba Broadway Bar & Pizza, 909 Vermillion St.is approved through June 30, 2025. ADOPTED BY THE CITY COUNCIL OF THE CITY OF HASTINGS, MINNESOTA, THIS 5th DAY OF MAY,2025. ATTEST: Kelly Murtaugh,City Clerk Mary D.Fasbender,Mayor VIII-05 City Council Memorandum To:Mayor Fasbender & City Councilmembers From:City Administrator Dan Wietecha Date:May 5, 2025 Item:2025 Budget Amendment: Wood Decking and Structural Supports Council Action Requested: Approve amendment to the 2025 Budget: $116,700 for wood decking, structural supports, and outrigger repair as part of the City Hall Historic Renovation project. Background Information: As contractor Renaissance Roofing is moving into the repair of the central dome, and now able to expose and examine the wood support structure, they have found need for new wood decking and support for the water table (ledge), new wood framing and waterproofing behind the band, repair or replacement of outriggers, and miscellaneous decking repair. Renaissance Roofing has provided a quote of $116,700, reviewed by our architects at Miller Dunwiddie, to perform the necessary work. Note that this is less than the per square foot unit pricing for unexposed wood repair that had been included in contract. Financial Impact: $116,700 –within project contingency Committee Discussion: Not applicable Attachment: Change Order #6 VIII-06 Project: Change Order Number: Project Number: Attn: Contract Date: The Contract is proposed to be changed as follows: Water Table A) Install ¾” plywood on skyward facing ledge (see detail 1, page 1) B) Replace up to 2 outriggers per 8 linear feet, cut to the appropriate size as needed in compromised areas. C) Install kickers as needed, cut to the appropriate size, to reinforce outriggers that will be replaced. D) Anchor outriggers and kickers to the existing framework where feasible. E) Install Simpson straps to replace missing or failed wire supports, as needed. Assuming 330 SF wood replacement with wood blocking included 43,785.00$ *Note the decking price unit initially provided is $295/SF without wood blocking - total of $97,350 Above Water Table F) Assuming 250 SF wood replacement with wood blocking included $ 53,515.00 *Note the decking price unit initially provided is $295/SF without wood blocking - total of $73,750 Main Dome G)Replace rotten/deteriorated decking on the main dome on an as-needed basis, based on field observation. Assuming 20 SF wood replacement on entire dome using cut offs from water table and backup. Note: this only includes the main part of the center dome up to Horizontal Band #2 on main dome. *Note the decking price unit initially provided is $295/SF - total of $5900 5,400.00$ Additional Items H)Additional scaffold rental to accommodate access for the above repair scope Pricing Breakdown: $ 116,700.00 Labor to remove & install wood as needed 102,700.00$ Approximately 4 man crew - 2 weeks of work Extended Scaffold Rental 8,500.00$ Tools, Supplies, Disposal 5,500.00$ 2231 Hawkey Drive 4/4/2025 Date Date Date Jake Verhagen Name (print) Name (print) Name (print) By (signature ) By (signature ) By (signature) Belvidere, IL Address Address Address Owner Representative (Firm Name)Contractor (Firm name) Owner(Firm name) The contract sum at time of this change order 3,389,910.00$ The contract sum will be Increased by this change Order in the amount of 116,700.00$ The new contract sum total, including this change order 3,506,610.00$ Renaissance Roofing, Inc. The net change by previously authorized change orders 85,115.00$ Carpentry Support Total amount: 116,700.00$ The original contract sum, including all alternates was 3,304,795.00$ The following selective repairs are necessary to stabilize the watertable shelf and provide adequate support for our new sheet metal assemblies. This scope does not include full replacement of the existing framing or support below the watertable. Above the watertable, new framing will be added around the circumference of the dome, as there is currently no blocking in place. See line items below for scope. Install new framing above the watertable shelf (at horizontal band #3/4) to provide anchoring for new sheet metal assembly, where no blocking currently exists. See detail 1 & 2, page 1 Kelly Mastin | Miller Dunwiddie 12/01/23 101 4th Street East Date:04/04/25 Hastings, MN 55033 COH2101 314/772.6222; Fax: 314/772.6224 Hastings City Hall: Historic Roofing Repair 6R CHANGE ORDER FORM 815/547.1725; Fax: 815/547.1425 www.HistoricExteriors.com BELVIDERE/CHICAGO OFFICE 1-800-699-5695 ST. LOUIS OFFICE P.O. Box 5024, Rockford, IL 61125 2306 Lemp Avenue 2231 Hawkey Drive, Belvidere, IL 61008 St. Louis, MO 63104 VIII-06 RENAISSANCE HISTORIC EXTERIORS tseiviaere,il Address By {signature ) 2231 HAWKEY DRIVE, BELVIDERE, IL 61108 RENAISSANCE HISTORIC EXTERIORS HASTINGS CITY HALL 101 4TH STREET EAST, HASTINGS, MN 55033 SCALE: AS NOTED DRAWN BY: BW CHECKED BY: REN TEAM DATE: 3/31/2025 DRAWING TITLE: PAGE NUMBER: MAIN DOME- HB #3/4 CARPENTRY NOTES: 1 NEW CARPENTRY: HB #3/4 SCALE: 3" = 1'-0"1 NEW 3/4" PLYWOOD SHELF CONT. AROUND ENTIRE DOME. FASTENED USING SCREWS OF VARIOUS LENGTHS. SLOPED 1/8" PER FOOT NEW PLYWOOD BLOCKING NEW 2X BLOCKING SPACED ROUGHLY 16" O.C. ATTACHED TO EXISTING BACKUP USING SCREWS OF VARIOUS LENGTHS NEW 3/4" PLYWOOD UPPER SHELF TO MATCH SLOPE OF ORIGINAL EXISTING CONDITIONS NOT SHOWN FOR CLARITY. UP TO 2 OUTRIGGERS PER 8' TO BE REPLACE, AS NEEDED NEW 2X SLOPED BLOCKING SPACED ROUGHLY 16" O.C. TYP AROUND ENTIRE CIRCUMFERENCE OF DOME. USED TO CREATE SLOPE TO PLYWOOD UPPER SHELF EXISTING DECKING BEHIND NEW WOOD ASSEMBLY NEW PLYWOOD ADDED FOR SOLID BACKING OF 2X BLOCKS. AREAS CURVED TO MATCH RADIUS OF DOME NEW PLYWOOD ABOVE 2X BLOCKS DRAWING NOTES: - VARIOUS SIZE OF SCREWS TO BE USED FOR NEW CARPENTRY ASSEMBLY - DO NOT SCALE FOR DIMENSIONS OUTLINE OF METAL SHOWN. ATTACHMENT METHODS TBD AND WILL BE SHOWN IN FUTURE SHOP DRAWINGS NEW CARPENTRY: HB #3/4 ISO SCALE: N.T.S 2 GENERAL OUTLINE OF METAL SHOWN. OVERALL SHAPE TO MATCH ORIGINAL OUTLINE OF CARPENTRY SHOW. NEW CARPENTRY AROUND ENTIRE CIRCUMFERENCE OF DOME EXISTING RIB BASE EXISTING RIBS EXISTING DECKING SHOWN DECKING REPAIRS, AS NEEDED ON MAIN DOMEVIII-06 City Council Memorandum To: Mayor Fasbender & City Council Members From: Ryan Stempski, P.E. – Public Works Director Date: May 5, 2025 Item: Consider Resolution to Approve Application to the Minnesota Public Facilities Authority COUNCIL ACTION REQUESTED The Council is requested to approve application to the Minnesota Public Facilities Authority (MPFA) to obtain a loan in the amount of $8.4 Million to fund the Central Water Treatment Plant and Water Lines Project. BACKGROUND The Central Water Treatment Plant and Water Lines Project is estimated to begin construction in August 2025. The project has received estimated funding support from: MPCA Planning and Design Grant ($1.2 Million), 3M East Metro Settlement Funds for Well No. 5 ($15.1 Million), and an Emerging Contaminants Grant ($3 Million). This leaves an estimated $8.4 Million to fund the project. The MPFA loan is a low-interest loan (about 1.5%) and saves almost $1 Million in interest. This loan must be repaid with water rates. The City Council discussed and supported the MPFA loan in a City Council Workshop on April 7, 2025. ATTACHMENTS Resolution Approving the Application to the Minnesota Public Facilities Authority VIII-07 CITY OF HASTINGS DAKOTA COUNTY,MINNESOTA RESOLUTION NO. RESOLUTION APPROVING THE APPLICATION TO THE MINNESOTA PUBLIC FACILITIES AUTHORITY WHEREAS, the City of Hastings intends to apply to the Minnesota Public Facilities Authority for a loan necessary to construct the Central Water Treatment Plant and Water Lines Project. NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HASTINGS AS FOLLOWS; that 1. The City of Hastings is hereby applying to the Minnesota Public Facilities Authority for a loan from the Drinking Revolving Fund for improvements to its municipal dinking water system as described in the loan application. 2.The City of Hastings estimates the loan amount to be $8.4 Million or the as-bid cost of the project. 3.The City of Hastings has the legal authority to apply for the loan, and the financial, technical, and managerial capacity to repay the loan and ensure proper construction, operation and maintenance of the project for its design life. ADOPTED BY THE CITY COUNCIL OF HASTINGS, MINNESOTA, THIS 5TH DAY OF MAY, 2025. Ayes: Nays: Mary D. Fasbender, Mayor ATTEST: Kelly Murtaugh, City Clerk SEAL VIII-07 City Council Memorandum To:Mayor Fasbender & City Councilmembers From:Chris Eitemiller, Finance Manager Date:May 5, 2025 Item:Set Sale Date and approve Issuance of Bonds Council Action Requested: Approve the sale date as June 2, 2025,for $4,500,000 General Obligation Bonds, Series 2025A, as well as corresponding resolutions. Background Information: These bonds will finance the 2025 street and utility improvement project. These obligations will be sold by a competitive,negotiated sale in accordance with Minnesota Statutes, Section 475.60, Subdivision 2(9).City staff will participate in a rating call with S&P Global Ratings for the bonds during the week of May 5th, 2025. The accompanying resolution provides for the City’s preliminary approval of the bonds and sets the sale date and time for June 2nd, 2025,at 10:00a.m. Following the sale, bid results will be presented to the Council, with final approval for the bonds considered via an authorizing resolution to be considered during the June 2nd, 2025,City Council meeting. Financial Impact: Bond and interest payments are factored into the City’s debt structure. Advisory Commission Discussion: N/A Council Committee Discussion: N/A Attachments: Resolution Finance Plan Municipal Advisory Agreement VIII-08 172479697v1 EXTRACT OF MINUTES OF A MEETING OF THE CITY COUNCIL CITY OF HASTINGS, MINNESOTA HELD: May 5, 2025 Pursuant to due call and notice thereof, a regular or special meeting of the City Council of the City of Hastings, Dakota and Washington Counties, Minnesota, was duly held at the City Hall in said City on May 5, 2025, at 7:00 P.M. for the purpose in part of authorizing the competitive negotiated sale of the $4,500,000 General Obligation Bonds, Series 2025A of said City. The following members were present: and the following were absent: Member _______________ introduced the following resolution and moved its adoption: RESOLUTION NO. _______________ RESOLUTION PROVIDING FOR THE COMPETITIVE NEGOTIATED SALE OF $4,500,000 GENERAL OBLIGATION BONDS, SERIES 2025A A.WHEREAS, the City Council of the City of Hastings, Minnesota (the "City"), has heretofore determined that it is necessary and expedient to issue General Obligation Bonds, Series 2025A (the "Bonds") to finance the City's 2025 street improvement and utility projects (the "Project"); and B.WHEREAS, the City has retained Northland Securities, Inc., in Minneapolis, Minnesota ("Northland"), as its independent municipal advisor and is therefore authorized to sell the Bonds by competitive negotiated sale in accordance with Minnesota Statutes, Section 475.60, Subdivision 2(9); and C.WHEREAS, the City has retained Taft Stettinius & Hollister LLP, in Minneapolis, Minnesota as its bond counsel for purposes of this financing. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hastings, Minnesota, as follows: 1.Authorization. The City Council hereby authorizes Northland to solicit proposals for the competitive negotiated sale of the Bonds. 2.Meeting; Proposal Opening. The City Council shall meet at the time and place specified in the Notice of Sale, in substantially the form attached hereto as Attachment A, for the purpose of considering sealed proposals for and awarding the sale of the Bonds. The Finance Manager, or designee, shall open proposals at the time and place specified in the Notice of Sale. 3.Notice of Sale. The terms and conditions of the Bonds and the negotiation thereof are in substantially in the form set forth in the Notice of Sale attached hereto as Attachment A and hereby approved and made a part hereof. VIII-08 172479697v1 2 4.Official Statement. In connection with the competitive negotiated sale of the Bonds, the Finance Manager and other officers or employees of the City are hereby authorized to cooperate with Northland and participate in the preparation of an official statement for the Bonds, and to execute and deliver it on behalf of the City upon its completion. The motion for the adoption of the foregoing resolution was duly seconded by member _______________ and, after full discussion thereof and upon a vote being taken thereon, the following voted in favor thereof: and the following voted against the same: Whereupon the resolution was declared duly passed and adopted. VIII-08 172479697v1 3 STATE OF MINNESOTA COUNTIES OF DAKOTA AND WASHINGTON CITY OF HASTINGS I, the undersigned, being the duly qualified and acting Clerk of the City of Hastings, Minnesota, DO HEREBY CERTIFY that I have compared the attached and foregoing extract of minutes with the original thereof on file in my office, and that the same is a full, true and complete transcript of the minutes of a meeting of the City Council duly called and held on the date therein indicated, insofar as such minutes relate to the City's $4,500,000 General Obligation Bonds, Series 2025A. WITNESS my hand on May 5, 2025. __________________________________ Clerk VIII-08 A-1 ATTACHMENT A NOTICE OF SALE $4,500,000* GENERAL OBLIGATION BONDS, SERIES 2025A CITY OF HASTINGS, MINNESOTA (Book-Entry Only) NOTICE IS HEREBY GIVEN that these Bonds will be offered for sale according to the following terms: TIME AND PLACE: Proposals (also referred to herein as "bids") will be opened by the City's Finance Manager, or designee, on Monday, June 2, 2025, at 10:00 A.M., CT, at the offices of Northland Securities, Inc. (the Issuer's "Municipal Advisor"), 150 South 5th Street, Suite 3300, Minneapolis, Minnesota 55402. Consideration of the Proposals for award of the sale will be by the City Council at its meeting at the City Offices beginning Monday, June 2, 2025 at 7:00 P.M., CT. SUBMISSION OF PROPOSALS Proposals may be: a)submitted to the office of Northland Securities, Inc., b)emailed to PublicSale@northlandsecurities.com c)for proposals submitted prior to the sale, the final price and coupon rates may be submitted to Northland Securities, Inc. by telephone at 612-851-5900 or 612-851-4945, or d)submitted electronically. Notice is hereby given that electronic proposals will be received via PARITY™, or its successor, in the manner described below, until 10:00 A.M., CT, on Monday, June 2, 2025. Proposals may be submitted electronically via PARITY™or its successor, pursuant to this Notice until 10:00 A.M., CT, but no Proposal will be received after the time for receiving Proposals specified above. To the extent any instructions or directions set forth in PARITY™, or its successor, conflict with this Notice, the terms of this Notice shall control. For further information about PARITY™, or its successor, potential bidders may contact Northland Securities, Inc. or i-Dealat 1359 Broadway, 2nd floor, New York, NY 10018, telephone 212-849-5021. *The City reserves the right to increase or decrease the principal amount of the Bonds. Any such increase or decrease will be made in multiples of $5,000 and may be made in any maturity. If any maturity is adjusted, the purchase price will also be adjusted to maintain the same gross spread. VIII-08 172479697v1 A-2 Neither the Issuer nor Northland Securities, Inc. assumes any liability if there is a malfunction of PARITY™or its successor. All bidders are advised that each Proposal shall be deemed to constitute a contract between the bidder and the Issuer to purchase the Bonds regardless of the manner in which the Proposal is submitted. BOOK-ENTRY SYSTEM The Bonds will be issued by means of a book-entry system with no physical distribution of bond certificates made to the public. The Bonds will be issued in fully registered form and one bond certificate, representing the aggregate principal amount of the Bonds maturing in each year, will be registered in the name of Cede & Co. as nominee of Depository Trust Company ("DTC"), New York, New York, which will act as securities depository of the Bonds. Individual purchases of the Bonds may be made in the principal amount of $5,000 or any multiple thereof of a single maturity through book entries made on the books and records of DTC and its participants. Principal and interest are payable by the Issuer through U.S. Bank Trust Company, National Association, St. Paul, Minnesota (the "Paying Agent/Registrar"), to DTC, or its nominee as registered owner of the Bonds. Transfer of principal and interest payments to participants of DTC will be the responsibility of DTC; transfer of principal and interest payments to beneficial owners by participants will be the responsibility of such participants and other nominees of beneficial owners. The successful bidder, as a condition of delivery of the Bonds, will be required to deposit the bond certificates with DTC. The Issuer will pay reasonable and customary charges for the services of the Paying Agent/Registrar. DATE OF ORIGINAL ISSUE OF BONDS Date of Delivery (Estimated to be June 26, 2025) AUTHORITY/PURPOSE/SECURITY The Bonds are being issued pursuant to Minnesota Statutes, Chapters 429, 444 and 475, as amended. Proceeds will be used to finance the City's 2025 street improvement and utility projects and to pay costs associated with the issuance of the Bonds. The Bonds are payable from special assessments levied against benefited properties, net revenues of the City's sanitary sewer, water and storm sewer utilities and additionally secured by ad valorem taxes on all taxable property within the City. The full faith and credit of the Issuer is pledged to their payment and the Issuer has validly obligated itself to levy ad valorem taxes in the event of any deficiency in the debt service account established for this issue. INTEREST PAYMENTS Interest is due semiannually on each February 1 and August 1, commencing February 1, 2026, to registered owners of the Bonds appearing of record in the Bond Register as of the close of business on the fifteenth day (whether or not a business day) of the calendar month next preceding such interest payment date. VIII-08 172479697v1 A-3 MATURITIES Principal is due annually on February 1, inclusive, in each of the years and amounts as follows: Year Amount Year Amount Year Amount 2026 $200,000 2030 $445,000 2034 $515,000 2027 410,000 2031 470,000 2035 530,000 2028 425,000 2032 475,000 2036 315,000 2029 435,000 2033 495,000 Proposals for the Bonds may contain a maturity schedule providing for any combination of serial bonds and term bonds, subject to mandatory redemption, so long as the amount of principal maturing or subject to mandatory redemption in each year conforms to the maturity schedule set forth above. INTEREST RATES All rates must be in integral multiples of 1/20th or 1/8th of 1%. The rate for any maturity may not be more than 2.00% less than the rate for any preceding maturity. All Bonds of the same maturity must bear a single uniform rate from date of issue to maturity. ESTABLISHMENT OF ISSUE PRICE (HOLD-THE-OFFERING-PRICE RULE MAY APPLY –BIDS NOT CANCELLABLE) The winning bidder shall assist the Issuer in establishing the issue price of the Bonds and shall execute and deliver to the Issuer at closing an "issue price" or similar certificate setting forth the reasonably expected initial offering price to the public or the sales price or prices of the Bonds, together with the supporting pricing wires or equivalent communications, substantially in the form attached hereto as Exhibit A, with such modifications as may be appropriate or necessary, in the reasonable judgment of the winning bidder, the Issuer and Bond Counsel. All actions to be taken by the Issuer under this Notice of Sale to establish the issue price of the Bonds may be taken on behalf of the Issuer by the Issuer 's Municipal Advisor and any notice or report to be provided to the Issuer may be provided to the City's Municipal Advisor. The City intends that the provisions of Treasury Regulation Section 1.148-1(f)(3)(i) (defining "competitive sale" for purposes of establishing the issue price of the Bonds) will apply to the initial sale of the Bonds (the "competitive sale requirements") because: (1)the Issuer shall disseminate this Notice of Sale to potential underwriters in a manner that is reasonably designed to reach potential underwriters; (2)all bidders shall have an equal opportunity to bid; (3)the Issuer may receive bids from at least three underwriters of municipal bonds who have established industry reputations for underwriting new issuances of municipal bonds; and (4)the Issuer anticipates awarding the sale of the Bonds to the bidder who submits a firm offer to purchase the Bonds at the highest price (or lowest cost), as set forth in this Notice of Sale. VIII-08 172479697v1 A-4 Any bid submitted pursuant to this Notice of Sale shall be considered a firm offer for the purchase of the Bonds, as specified in the bid. In the event that the competitive sale requirements are not satisfied, the Issuer shall promptly so advise the winning bidder. The Issuer may then determine to treat the initial offering price to the public as of the award date of the Bonds as the issue price of each maturity by imposing on the winning bidder the Hold-the-Offering-Price Rule as described in the following paragraph (the "Hold-the-Offering-Price Rule"). Bids will not be subject to cancellation in the event that the Issuer determines to apply the Hold-the-Offering-Price Rule to the Bonds. Bidders should prepare their bids on the assumption that the Bonds will be subject to the Hold-the-Offering- Price Rule in order to establish the issue price of the Bonds. By submitting a bid, the winning bidder shall (i) confirm that the underwriters have offered or will offer the Bonds to the public on or before the date of award at the offering price or prices (the "Initial Offering Price"), or at the corresponding yield or yields, set forth in the bid submitted by the winning bidder and (ii) agree, on behalf of the underwriters participating in the purchase of the Bonds, that the underwriters will neither offer nor sell unsold Bonds of any maturity to which the Hold-the-Offering Price Rule shall apply to any person at a price that is higher than the Initial Offering Price to the public during the period starting on the award date for the Bonds and ending on the earlier of the following: (1)the close of the fifth (5th) business day after the award date; or (2)the date on which the underwriters have sold at least 10% of a maturity of the Bonds to the public at a price that is no higher than the Initial Offering Price to the public (the "10% Test"), at which time only that particular maturity will no longer be subject to the Hold- the-Offering-Price Rule. The Issuer acknowledges that, in making the representations set forth above, the winning bidder will rely on (i) the agreement of each underwriter to comply with the requirements for establishing issue price of the Bonds, including, but not limited to, its agreement to comply with the Hold-the- Offering-Price Rule, if applicable to the Bonds, as set forth in an agreement among underwriters and the related pricing wires, (ii) in the event a selling group has been created in connection with the initial sale of the Bonds to the public, the agreement of each dealer who is a member of the selling group to comply with the requirements for establishing issue price of the Bonds, including but not limited to, its agreement to comply with the Hold-the-Offering-Price Rule, if applicable to the Bonds, as set forth in a selling group agreement and the related pricing wires, and (iii) in the event that an underwriter or dealer who is a member of the selling group is a party to a third-party distribution agreement that was employed in connection with the initial sale of the Bonds to the public, the agreement of each broker-dealer that is a party to such agreement to comply with the requirements for establishing issue price of the Bonds, including, but not limited to, its agreement to comply with the Hold-the-Offering-Price Rule, if applicable to the Bonds, as set forth in the third-party distribution agreement and the related pricing wires. The Issuer further acknowledges that each underwriter shall be solely liable for its failure to comply with its agreement regarding the requirements for establishing issue price of the Bonds, including but not limited to, its agreement to comply with the Hold-the-Offering-Price Rule, if applicable to the Bonds, and that no underwriter shall be liable for the failure of any other underwriter, or of any dealer who is a member of a selling group, or of any broker-dealer that is a party to a third-party distribution VIII-08 172479697v1 A-5 agreement to comply with its corresponding agreement to comply with the requirements for establishing issue price of the Bonds,including, but not limited to, its agreement to comply with the Hold-the-Offering-Price Rule if applicable to the Bonds. By submitting a bid, each bidder confirms that: (i) any agreement among underwriters, any selling group agreement and each third-party distribution agreement (to which the bidder is a party) relating to the initial sale of the Bonds to the public, together with the related pricing wires, contains or will contain language obligating each underwriter, each dealer who is a member of the selling group, and each broker-dealer that is a party to such third-party distribution agreement, as applicable, (A) to comply with the Hold-the-Offering-Price Rule, if applicable if and for so long as directed by the winning bidder and as set forth in the related pricing wires, (B) to promptly notify the winning bidder of any sales of Bonds that to its knowledge, are made to a purchaser who is a related party to an underwriter participating in the initial sale of the Bonds to the public (each such term being used as defined below), and (C) to acknowledge that, unless otherwise advised by the underwriter, dealer or broker-dealer,the winning bidder shall assume that each order submitted by the underwriter, dealer or broker-dealer is a sale to the public, and (ii) any agreement among underwriters or selling group agreement relating to the initial sale of the Bonds to the public, together with the related pricing wires, contains or will contain language obligating each underwriter or dealer that is a party to a third-party distribution agreement to be employed in connection with the initial sale of the Bonds to the public to require each broker-dealer that is a party to such retail distribution agreement to comply with the Hold-the-Offering-Price Rule, if applicable, in each case if and for so long as directed by the winning bidder or the underwriter and as set forth in the related pricing wires. Notes: Sales of any Bonds to any person that is a related party to an underwriter participating in the initial sale of the Bonds to the public (each such term being used as defined below) shall not constitute sales to the public for purposes of this Notice of Sale. Further, for purposes of this Notice of Sale: (1)"public" means any person other than an underwriter or a related party, (2)"underwriter" means (A) any person that agrees pursuant to a written contract with the Issuer (or with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds to the public and (B) any person that agrees pursuant to a written contract directly or indirectly with a person described in clause (A) to participate in the initial sale of the Bonds to the public (including a member of a selling group or a party to a third-party distribution agreement participating in the initial sale of the Bonds to the public). (3)a purchaser of any of the Bonds is a "related party" to an underwriter if the underwriter and the purchaser are subject, directly or indirectly, to (A) more than 50% common ownership of the voting power or the total value of their stock, if both entities are corporations (including direct ownership by one corporation or another), (B) more than 50% common ownership of their capital interests or profits interests, if both entities are partnerships (including direct ownership by one partnership of another), or (C) more than 50% common ownership of the value of the outstanding stock of the corporation or the capital interests or profit interests of the partnership, as applicable, if one entity is a corporation and the other entity is a partnership (including direct ownership of the applicable stock or interests by one entity of the other), and VIII-08 172479697v1 A-6 (4)"sale date" means the date that the Bonds are awarded by the Issuer to the winning bidder. ADJUSTMENTS TO PRINCIPAL AMOUNT AFTER PROPOSALS The Issuer y reserves the right to increase or decrease the principal amount of the Bonds. Any such increase or decrease will be made in multiples of $5,000 and may be made in any maturity. If any maturity is adjusted, the purchase price will also be adjusted to maintain the same gross spread. Such adjustments shall be made promptly after the sale and prior to the award of Proposals by the Issuer and shall be at the sole discretion of the Issuer. The successful bidder may not withdraw or modify its Proposal once submitted to the Issuer for any reason, including post-sale adjustment. Any adjustment shall be conclusive and shall be binding upon the successful bidder. OPTIONAL REDEMPTION Bonds maturing on and after February 1, 2034 are subject to redemption and prepayment at the option of the Issuer on February 1, 2033 and any date thereafter, at a price of par plus accrued interest. Redemption may be in whole or in part of the Bonds subject to prepayment. If redemption is in part, the maturities and principal amounts within each maturity to be redeemed shall be determined by the Issuer and if only part of the Bonds having a common maturity date are called for prepayment, the specific Bonds to be prepaid shall be chosen by lot by the Bond Registrar. CUSIP NUMBERS If the Bonds qualify for assignment of CUSIP numbers such numbers will be printed on the Bonds, but neither the failure to print such numbers on any Bond nor any error with respect thereto shall constitute cause for a failure or refusal by the successful bidder thereof to accept delivery of and pay for the Bonds in accordance with terms of the purchase contract. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers shall be paid by the successful bidder. DELIVERY Delivery of the Bonds will be within thirty days after award, subject to an approving legal opinion by Taft Stettinius & Hollister LLP, Bond Counsel. The legal opinion will be paid by the Issuer and delivery will be anywhere in the continental United States without cost to the successful bidder at DTC. TYPE OF PROPOSAL Proposals of not less than $4,656,062.50 (98.75%) and accrued interest on the principal sum of $4,500,000 must be filed with the undersigned prior to the time of sale. Proposals must be unconditional except as to legality. Proposals for the Bonds should be delivered to Northland Securities, Inc. and addressed to: Chris Eitemiller, Finance Manager 101 4th Street East Hastings, Minnesota 55033 VIII-08 172479697v1 A-7 A good faith deposit (the "Deposit") in the amount of $94,300 in the form of a federal wire transfer (payable to the order of the Issuer) is only required from the apparent winning bidder, and must be received within two hours after the time stated for the receipt of Proposals. The apparent winning bidder will receive notification of the wire instructions from the Municipal Advisor promptly after the sale. If the Deposit is not received from the apparent winning bidder in the time allotted, the Issuer may choose to reject their Proposal and then proceed to offer the Bonds to the next lowest bidder based on the terms of their original proposal, so long as said bidder wires funds for the Deposit amount within two hours of said offer. The City will retain the Deposit of the successful bidder, the amount of which will be deducted at settlement and no interest will accrue to the successful bidder. In the event the successful bidder fails to comply with the accepted Proposal, said amount will be retained by the City. No Proposal can be withdrawn after the time set for receiving Proposals unless the meeting of the City scheduled for award of the Bonds is adjourned, recessed, or continued to another date without award of the Bonds having been made. AWARD The Bonds will be awarded on the basis of the lowest interest rate to be determined on a true interest cost (TIC) basis. The Issuer 's computation of the interest rate of each Proposal, in accordance with customary practice, will be controlling. In the event of a tie, the sale of the Bonds will be awarded by lot. The Issuer will reserve the right to: (i) waive non-substantive informalities of any Proposal or of matters relating to the receipt of Proposals and award of the Bonds, (ii) reject all Proposals without cause, and (iii) reject any Proposal which the Issuer determines to have failed to comply with the terms herein. INFORMATION FROM SUCCESSFUL BIDDER The successful bidder will be required to provide, in a timely manner, certain information relating to the initial offering price of the Bonds necessary to compute the yield on the Bonds pursuant to the provisions of the Internal Revenue Code of 1986, as amended. OFFICIAL STATEMENT By awarding the Bonds to any underwriter or underwriting syndicate submitting a Proposal therefor, the Issuer agrees that, no more than seven business days after the date of such award, it shall provide to the senior managing underwriter of the syndicate to which the Bonds are awarded, the Final Official Statement in an electronic format as prescribed by the Municipal Securities Rulemaking Board (MSRB). FULL CONTINUING DISCLOSURE UNDERTAKING The Issuer will covenant in the resolution awarding the sale of the Bonds and in a Continuing Disclosure Undertaking to provide, or cause to be provided, annual financial information, including audited financial statements of the Issuer, and notices of certain material events, as VIII-08 172479697v1 A-8 required by SEC Rule 15c2-12. NOT BANK QUALIFIED The Issuer will not designate the Bonds as qualified tax-exempt obligations for purposes of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended. BOND INSURANCE AT UNDERWRITER'S OPTION If the Bonds qualify for issuance of any policy of municipal bond insurance or commitment therefor at the option of the successful bidder, the purchase of any such insurance policy or the issuance of any such commitment shall be at the sole option and expense of the successful bidder of the Bonds. Any increase in the costs of issuance of the Bonds resulting from such purchase of insurance shall be paid by the successful bidder, except that, if the Issuer has requested and received a rating on the Bonds from a rating agency, the Issuer y will pay that rating fee. Any other rating agency fees shall be the responsibility of the successful bidder. Failure of the municipal bond insurer to issue the policy after the Bonds have been awarded to the successful bidder shall not constitute cause for failure or refusal by the successful bidder to accept delivery on the Bonds. The Issuer reserves the right to reject any and all Proposals, to waive informalities and to adjourn the sale. Dated: May 5, 2025 BY ORDER OF THE HASTINGS CITY COUNCIL /s/Chris Eitemiller Finance Manager Additional information may be obtained from: Northland Securities, Inc. 150 South 5th Street, Suite 3300 Minneapolis, Minnesota 55402 Telephone No.: 612-851-5900 VIII-08 A-1 EXHIBIT A [FORM OF ISSUE PRICE CERTIFICATE –COMPETITIVE SALE SATISFIED] The undersigned, on behalf of ______________________________ (the "Underwriter"), hereby certifies as set forth below with respect to the sale of the General Obligation Bonds, Series 2025A (the "Bonds") of the City of Hastings, Minnesota (the "Issuer"). 1.Reasonably Expected Initial Offering Price. (a)As of the Sale Date, the reasonably expected initial offering prices of the Bonds to the Public by the Underwriter are the prices listed in Schedule A (the "Expected Offering Prices"). The Expected Offering Prices are the prices for the Maturities of the Bonds used by the Underwriter in formulating its bid to purchase the Bonds. Attached as Schedule B is a true and correct copy of the bid provided by the Underwriter to purchase the Bonds. (b)The Underwriter was not given the opportunity to review other bids prior to submitting its bid. (c)The bid submitted by the Underwriter constituted a firm offer to purchase the Bonds. 2.Defined Terms. (a)"Maturity" means Bonds with the same credit and payment terms. Bonds with different maturity dates, or Bonds with the same maturity date but different stated interest rates, are treated as separate Maturities. (b)"Public" means any person (including an individual, trust, estate, partnership, association, company, or corporation) other than an Underwriter or a related party to an Underwriter. The term "related party" for purposes of this certificate generally means any two or more persons who have greater than 50 percent common ownership, directly or indirectly. (c)"Sale Date" means the first day on which there is a binding contract in writing for the sale of a Maturity of the Bonds. The Sale Date of the Bonds is _______________. (d)"Underwriter" means (i) any person that agrees pursuant to a written contract with the Issuer (or with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds to the Public, and (ii) any person that agrees pursuant to a written contract directly or indirectly with a person described in clause (i) of this paragraph to participate in the initial sale of the Bonds to the Public (including a member of a selling group or a party to a retail distribution agreement participating in the initial sale of the Bonds to the Public). The representations set forth in this certificate are limited to factual matters only. Nothing in this certificate represents the Underwriter's interpretation of any laws, including specifically Sections 103 and 148 of the Internal Revenue Code of 1986, as amended, and the Treasury Regulations thereunder. The undersigned understands that the foregoing information will be relied upon by the Issuer with respect to certain of the representations set forth in the Nonarbitrage Certificate and with respect to compliance with the federal income tax rules affecting the Bonds, and by Taft Stettinius & Hollister LLP, Bond Counsel in connection with rendering its opinion that the interest on the Bonds is excluded from gross income for federal income tax purposes, the preparation of the Internal VIII-08 172479697v1 A-2 Revenue Service Form 8038-G, and other federal income tax advice that it may give to the Issuer from time to time relating to the Bonds. Dated: June 26, 2025. VIII-08 172479697v1 A-3 [FORM OF ISSUE PRICE CERTIFICATE –HOLD-THE-OFFERING-PRICE RULE APPLIES] The undersigned, on behalf of ________________________________(the "Underwriter"), on behalf of itself, hereby certifies as set forth below with respect to the sale and issuance of General Obligation Bonds, Series 2025A (the "Bonds") of the City of Hastings, Minnesota (the "Issuer"). 1.Initial Offering Price of the Bonds. (a)The Underwriter offered each Maturity of the Bonds to the Public for purchase at the respective initial offering prices listed in Schedule A (the "Initial Offering Prices") on or before the Sale Date. A copy of the pricing wire or equivalent communication for the Bonds is attached to this certificate as Schedule B. (b)As set forth in the Notice of Sale and bid award, the Underwriter has agreed in writing that, (i) for each Maturity of the Bonds, it would neither offer nor sell any of the Bonds of such Maturity to any person at a price that is higher than the Initial Offering Price for such Maturity during the Holding Period for such Maturity (the "hold-the-offering-price rule"), and (ii) any selling group agreement shall contain the agreement of each dealer who is a member of the selling group, and any retail distribution agreement shall contain the agreement of each broker-dealer who is a party to the retail distribution agreement, to comply with the hold-the-offering-price rule. Pursuant to such agreement, no Underwriter (as defined below) has offered or sold any Maturity of the Bonds at a price that is higher than the respective Initial Offering Price for that Maturity of the Bonds during the Holding Period. 2.Defined Terms. (a)"Holding Period" means, for each Maturity of the Bonds, the period starting on the Sale Date and ending on the earlier of (i) the close of the fifth business day after the Sale Date (________________), or (ii) the date on which the Underwriter has sold at least 10% of such Maturity of the Bonds to the Public at prices that are no higher than the Initial Offering Price for such Maturity. (b)"Maturity" means Bonds with the same credit and payment terms. Bonds with different maturity dates, or Bonds with the same maturity date but different stated interest rates, are treated as separate Maturities. (c)"Public" means any person (including an individual, trust, estate, partnership, association, company, or corporation) other than an Underwriter or a related party to an Underwriter. The term "related party" for purposes of this certificate generally means any two or more persons who have greater than 50 percent common ownership, directly or indirectly. (d)"Sale Date" means the first day on which there is a binding contract in writing for the sale of a Maturity of the Bonds. The Sale Date of the Bonds is ________________. (e)"Underwriter" means (i) any person that agrees pursuant to a written contract with the Issuer (or with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds to the Public, and (ii) any person that agrees pursuant to a written contract directly or indirectly with a person described in clause (i) of this paragraph to participate in the initial sale of the VIII-08 172479697v1 A-4 Bonds to the Public (including a member of a selling group or a party to a retail distribution agreement participating in the initial sale of the Bonds to the Public). The representations set forth in this certificate are limited to factual matters only. Nothing in this certificate represents the Representative's interpretation of any laws, including specifically Sections 103 and 148 of the Internal Revenue Code of 1986, as amended, and the Treasury Regulations thereunder. The undersigned understands that the foregoing information will be relied upon by the Issuer with respect to certain of the representations set forth in the Nonarbitrage Certificate and with respect to compliance with the federal income tax rules affecting the Bonds, and by Taft Stettinius & Hollister LLP, Bond Counsel, in connection with rendering its opinion that the interest on the Bonds is excluded from gross income for federal income tax purposes, the preparation of the Internal Revenue Service Form 8038-G, and other federal income tax advice that it may give to the Issuer from time to time relating to the Bonds. Dated: June 26, 2025. VIII-08 Finance Plan City of Hastings, Minnesota $4,500,000 General Obligation Bonds, Series 2025A May 5, 2025 150 South 5th Street, Suite 3300 Minneapolis, MN 55402 612-851-5900 800-851-2920 www.northlandsecurities.com Member FINRA and SIPC | Registered MSRB and SEC VIII-08 (J)northland Northland Securities, Inc.Page 1 Contents Executive Summary ...............................................................................................................................2 Issue Overview .......................................................................................................................................3 Purpose........................................................................................................................................................3 Authority.....................................................................................................................................................3 Structure......................................................................................................................................................3 Security and Source of Repayment ...................................................................................................4 Plan Rationale............................................................................................................................................4 Issuing Process..........................................................................................................................................4 Attachment 1 –Preliminary Debt Service Schedules........................................................................5 Attachment 2 –Estimated Levy Schedules .........................................................................................8 Attachment 3 –Related Considerations ..............................................................................................9 Not Bank Qualified..........................................................................................................................9 Arbitrage Compliance ....................................................................................................................9 Continuing Disclosure....................................................................................................................9 Premiums.............................................................................................................................................9 Rating..................................................................................................................................................10 Attachment 4 –Calendar of Events ....................................................................................................11 Attachment 5 -Risk Factors.................................................................................................................13 VIII-08 Northland Securities, Inc.Page 2 Executive Summary The following is a summary of the recommended terms for the issuance of $4,500,000 General Obligation Bonds, Series 2025A (the “Bonds”).Additional information on the proposed finance plan and issuing process can be found after the Executive Summary, in the Issue Overview and Attachment 3 –Related Considerations. Purpose Proceeds from the Bonds will be used to finance the City’s 2025 street improvement and utility projects,and to pay the costs associated with the issuance of the Bonds. Security The Bonds will be a general obligation of the City. The City will pledge special assessments collected from benefitted properties,net revenues of the City’s sanitary sewer, water, and storm sewer utilities.In addition, the Bonds will be secured by ad valorem taxes. Repayment Term The Bonds will mature annually each February 1 in the years 2026 through 2036. Interest on the Bonds will be payable on February 1, 2026 and semiannually thereafter on each February 1 and August 1. Estimated Interest Rate True interest cost (TIC):4.02% Prepayment Option Bonds maturing on and after February 1, 2034 will be subject to redemption on February 1, 2033 and any day thereafter at a price of par plus accrued interest. Rating A rating will be requested from Standard & Poor’s (“S&P”). The City’s general obligation debt is currently rated “AA+”by S&P. Tax Status The Bonds will be tax-exempt, non-bank qualified obligations. Risk Factors There are certain risks associated with all debt. Risk factors related to the Bonds are discussed in Attachment 5. Type of Bond Sale Public Sale –Competitive Bids Proposals Received Monday,June 2 @ 10:00 A.M. Council Consideration Monday, June 2 @ 7:00 P.M. VIII-08 Northland Securities, Inc.Page 3 Issue Overview Purpose Proceeds from the Bonds will be used to finance the City’s 2025 street improvement (the “Improvement Portion”) and utility (the “Revenue Portions”) projects and to pay costs associated with issuing the Bonds.The Bonds have been sized based on estimates provided by City staff. The table below contains the sources and uses of funds for the bond issue. Authority The Bonds will be issued pursuant to the authority of Minnesota Statutes Chapters 429, 444,and 475. Improvement Portion Under Chapter 429, an Improvement means any type of improvement made under authority granted by section 429.021, which includes, but is not limited to, improvements to streets and sidewalks, storm and sanitary sewer systems, and street lighting systems. Before issuing bonds under Chapter 429, the City must hold a public hearing on the Improvements and the proposed bonds and must pass a resolution ordering the improvements by at least a 4/5 majority.The public hearing has been held for the Improvement Portion and all corresponding resolutions have passed with at least a 4/5 majority. Revenue Portions Under Chapter 444, general obligation utility revenue bonds may be issued to build, construct, reconstruct, repair, enlarge, improve, or in any other manner obtain sanitary sewer, water and storm sewer facilities, and maintain and operate the facilities inside or outside a city’s corporate limits. Structure The Improvement Portion of the Bonds have been structured over 10 years, with relatively level annual debt service payments beginning on February 1, 2027.The Revenue Portions of the bonds have been structured over 10 years, with relatively level annual debt service payments beginning on February 1, 2026. The proposed structure for the bond issue and preliminary debt service projections for each portion of the issue are illustrated in Attachment 1 and the estimated levies are illustrated in Attachment 2. Street Improvement Sanitary Sewer Water Storm Sewer Issue Summary Sources Of Funds Par Amount of Bonds $2,280,000.00 $885,000.00 $805,000.00 $530,000.00 $4,500,000.00 Total Sources $2,280,000.00 $885,000.00 $805,000.00 $530,000.00 $4,500,000.00 Uses Of Funds Deposit to Project Construction Fund 2,169,949.00 861,385.00 783,977.00 515,222.00 4,330,533.00 Costs of Issuance 30,686.11 11,911.06 10,834.36 7,133.17 60,564.70Total Underwriter's Discount (1.250%)28,500.00 11,062.50 10,062.50 6,625.00 56,250.00Deposit to Capitalized Interest (CIF) Fund 50,551.88 ---50,551.88 Rounding Amount 313.01 641.44 126.14 1,019.83 2,100.42 Total Uses $2,280,000.00 $885,000.00 $805,000.00 $530,000.00 $4,500,000.00 VIII-08 Northland Securities, Inc.Page 4 Security and Source of Repayment The Bonds will be general obligations of the City. The finance plan relies on the following assumptions for the revenues used to pay debt service, as provided by City staff: •Special Assessments. The City is expected to levy special assessments against benefited properties in the amount of $724,462.50 for the Improvement Portion of the Bonds. The assessments will be payable over 10 years, with an interest rate of 1.50% over the true interest cost on the Improvement Portion of the Bonds (currently estimated to be 5.50%) and structured for level annual payments of principal and interest. The plan assumes that the assessments will be levied in 2025 for initial payment in 2026. •Utility Revenues. Net revenues of the City’s sanitary sewer, water and storm sewer utilities (operating funds) will be pledged for payment of the Revenue Portions of the Bonds. The City will covenant to adopt storm sewer and water rates and charges that are sufficient to produce net revenues equal to at least 105% of the debt service requirements on the Revenue Portions of the Bonds. In the event there is a deficiency in the amount of net revenues available for payment of debt service, the City may levy taxes to cover the insufficiency, but only on a temporary basis until rates are adjusted. •Property Taxes. The remaining revenues needed to pay debt service on the Bonds are expected to come from property tax levies. The initial projections show a tax levy of approximately $196,145 is needed to produce the statutory requirement of 105% of debt service,after accounting for assessments and utility revenues. The levy may be adjusted annually based on actual special assessment collections and additional monies in the debt service fund. The initial tax levy will be made in 2025 for taxes payable in 2026. Given the timing of the initial revenue from the tax levy and special assessments the structure includes capitalized interest for the Improvement Portion of the Bonds to cover the first interest payment due on February 1, 2026, before the first tax collections are received. Revenues from the City’s sanitary sewer,water and storm sewer utilities will also be used to cover the first principal and interest payment due on February 1, 2026. Plan Rationale The Finance Plan recommended in this report is based on a variety of factors and information provided by the City related to the financed project and City objectives, Northland’s knowledge of the City and our experience in working with similar cities and projects. The issuance of General Obligation Bonds provides the best means of achieving the City’s objectives and cost-effective financing. The City has successfully issued and managed this type of debt for previous projects. Issuing Process Northland will receive bids to purchase the Bonds on Monday, June 2, 2025 at 10:00 AM. Market conditions and the marketability of the Bonds support issuance through a competitive sale. This process has been chosen as it is intended to produce the lowest combination of interest expense and underwriting expense on the date and time set to receive bids.The calendar of events for the issuing process can be found in Attachment 4. Municipal Advisor:Northland Securities, Inc., Minneapolis, Minnesota Bond Counsel:Taft Stettinius & Hollister LLP,Minneapolis, Minnesota Paying Agent:U.S.Bank, National Association, St. Paul, Minnesota VIII-08 Northland Securities, Inc.Page 5 Attachment 1 –Preliminary Debt Service Schedules Combined Date Principal Coupon Interest Total P+I Fiscal Total 06/26/2025 -----02/01/2026 215,000.00 3.400%98,829.83 313,829.83 313,829.8308/01/2026 --79,086.25 79,086.25 -02/01/2027 385,000.00 3.400%79,086.25 464,086.25 543,172.5008/01/2027 --72,541.25 72,541.25 -02/01/2028 400,000.00 3.450%72,541.25 472,541.25 545,082.5008/01/2028 --65,641.25 65,641.25 -02/01/2029 415,000.00 3.500%65,641.25 480,641.25 546,282.5008/01/2029 --58,378.75 58,378.75 -02/01/2030 425,000.00 3.550%58,378.75 483,378.75 541,757.5008/01/2030 --50,835.00 50,835.00 - 02/01/2031 445,000.00 3.600%50,835.00 495,835.00 546,670.0008/01/2031 --42,825.00 42,825.00 -02/01/2032 460,000.00 3.700%42,825.00 502,825.00 545,650.0008/01/2032 --34,315.00 34,315.00 - 02/01/2033 475,000.00 3.800%34,315.00 509,315.00 543,630.0008/01/2033 --25,290.00 25,290.00 -02/01/2034 500,000.00 3.900%25,290.00 525,290.00 550,580.0008/01/2034 --15,540.00 15,540.00 -02/01/2035 510,000.00 3.950%15,540.00 525,540.00 541,080.0008/01/2035 --5,467.50 5,467.50 -02/01/2036 270,000.00 4.050%5,467.50 275,467.50 280,935.00 Total $4,500,000.00 -$998,669.83 $5,498,669.83 - Yield Statistics Bond Year Dollars $26,417.50 Average Life 5.871 YearsAverage Coupon 3.7803344% Net Interest Cost (NIC)3.9932614% True Interest Cost (TIC)4.0182774%Bond Yield for Arbitrage Purposes 3.7712622%All Inclusive Cost (AIC)4.2892506% IRS Form 8038 Net Interest Cost 3.7803344%Weighted Average Maturity 5.871 Years Optional Redemption 02/01/2033 @100.000% VIII-08 Northland Securities, Inc.Page 6 Improvement Portion Sanitary Sewer Date Principal Coupon Interest Total P+I Fiscal Total 06/26/2025 -----02/01/2026 --50,551.88 50,551.88 50,551.8808/01/2026 --42,322.50 42,322.50 -02/01/2027 195,000.00 3.400%42,322.50 237,322.50 279,645.00 08/01/2027 --39,007.50 39,007.50 -02/01/2028 200,000.00 3.450%39,007.50 239,007.50 278,015.0008/01/2028 --35,557.50 35,557.50 -02/01/2029 205,000.00 3.500%35,557.50 240,557.50 276,115.0008/01/2029 --31,970.00 31,970.00 -02/01/2030 215,000.00 3.550%31,970.00 246,970.00 278,940.0008/01/2030 --28,153.75 28,153.75 - 02/01/2031 220,000.00 3.600%28,153.75 248,153.75 276,307.5008/01/2031 --24,193.75 24,193.75 -02/01/2032 230,000.00 3.700%24,193.75 254,193.75 278,387.5008/01/2032 --19,938.75 19,938.75 -02/01/2033 240,000.00 3.800%19,938.75 259,938.75 279,877.5008/01/2033 --15,378.75 15,378.75 -02/01/2034 250,000.00 3.900%15,378.75 265,378.75 280,757.50 08/01/2034 --10,503.75 10,503.75 -02/01/2035 255,000.00 3.950%10,503.75 265,503.75 276,007.5008/01/2035 --5,467.50 5,467.50 -02/01/2036 270,000.00 4.050%5,467.50 275,467.50 280,935.00 Total $2,280,000.00 -$555,539.38 $2,835,539.38 - Date Principal Coupon Interest Total P+I Fiscal Total 06/26/2025 -----02/01/2026 85,000.00 3.400%19,243.99 104,243.99 104,243.99 08/01/2026 --14,666.25 14,666.25 -02/01/2027 75,000.00 3.400%14,666.25 89,666.25 104,332.5008/01/2027 --13,391.25 13,391.25 -02/01/2028 80,000.00 3.450%13,391.25 93,391.25 106,782.5008/01/2028 --12,011.25 12,011.25 -02/01/2029 85,000.00 3.500%12,011.25 97,011.25 109,022.5008/01/2029 --10,523.75 10,523.75 - 02/01/2030 85,000.00 3.550%10,523.75 95,523.75 106,047.5008/01/2030 --9,015.00 9,015.00 -02/01/2031 90,000.00 3.600%9,015.00 99,015.00 108,030.0008/01/2031 --7,395.00 7,395.00 - 02/01/2032 90,000.00 3.700%7,395.00 97,395.00 104,790.0008/01/2032 --5,730.00 5,730.00 -02/01/2033 95,000.00 3.800%5,730.00 100,730.00 106,460.0008/01/2033 --3,925.00 3,925.00 -02/01/2034 100,000.00 3.900%3,925.00 103,925.00 107,850.0008/01/2034 --1,975.00 1,975.00 -02/01/2035 100,000.00 3.950%1,975.00 101,975.00 103,950.00 Total $885,000.00 -$176,508.99 $1,061,508.99 - VIII-08 Northland Securities, Inc.Page 7 Water Portion Storm Sewer Portion Date Principal Coupon Interest Total P+I Fiscal Total 06/26/2025 -----02/01/2026 80,000.00 3.400%17,510.56 97,510.56 97,510.5608/01/2026 --13,300.00 13,300.00 -02/01/2027 70,000.00 3.400%13,300.00 83,300.00 96,600.00 08/01/2027 --12,110.00 12,110.00 -02/01/2028 70,000.00 3.450%12,110.00 82,110.00 94,220.0008/01/2028 --10,902.50 10,902.50 -02/01/2029 75,000.00 3.500%10,902.50 85,902.50 96,805.0008/01/2029 --9,590.00 9,590.00 -02/01/2030 75,000.00 3.550%9,590.00 84,590.00 94,180.0008/01/2030 --8,258.75 8,258.75 - 02/01/2031 80,000.00 3.600%8,258.75 88,258.75 96,517.5008/01/2031 --6,818.75 6,818.75 -02/01/2032 85,000.00 3.700%6,818.75 91,818.75 98,637.5008/01/2032 --5,246.25 5,246.25 -02/01/2033 85,000.00 3.800%5,246.25 90,246.25 95,492.5008/01/2033 --3,631.25 3,631.25 -02/01/2034 90,000.00 3.900%3,631.25 93,631.25 97,262.50 08/01/2034 --1,876.25 1,876.25 -02/01/2035 95,000.00 3.950%1,876.25 96,876.25 98,752.50 Total $805,000.00 -$160,978.06 $965,978.06 - Date Principal Coupon Interest Total P+I Fiscal Total 06/26/2025 -----02/01/2026 50,000.00 3.400%11,523.40 61,523.40 61,523.40 08/01/2026 --8,797.50 8,797.50 -02/01/2027 45,000.00 3.400%8,797.50 53,797.50 62,595.0008/01/2027 --8,032.50 8,032.50 -02/01/2028 50,000.00 3.450%8,032.50 58,032.50 66,065.00 08/01/2028 --7,170.00 7,170.00 -02/01/2029 50,000.00 3.500%7,170.00 57,170.00 64,340.0008/01/2029 --6,295.00 6,295.00 - 02/01/2030 50,000.00 3.550%6,295.00 56,295.00 62,590.0008/01/2030 --5,407.50 5,407.50 -02/01/2031 55,000.00 3.600%5,407.50 60,407.50 65,815.0008/01/2031 --4,417.50 4,417.50 - 02/01/2032 55,000.00 3.700%4,417.50 59,417.50 63,835.0008/01/2032 --3,400.00 3,400.00 -02/01/2033 55,000.00 3.800%3,400.00 58,400.00 61,800.0008/01/2033 --2,355.00 2,355.00 -02/01/2034 60,000.00 3.900%2,355.00 62,355.00 64,710.0008/01/2034 --1,185.00 1,185.00 -02/01/2035 60,000.00 3.950%1,185.00 61,185.00 62,370.00 Total $530,000.00 -$105,643.40 $635,643.40 - VIII-08 Northland Securities, Inc.Page 8 Attachment 2 –Estimated Levy Schedules Improvement Portion Date Total P+I CIF 105% Levy *Less: Special Assessment Revenue*Net Levy Levy Year Collection Year 02/01/2026 50,551.88 (50,551.88)---02/01/2027 279,645.00 -293,627.25 96,990.78 196,636.47 2025 202602/01/2028 278,015.00 -291,915.75 96,990.77 194,924.98 2026 202702/01/2029 276,115.00 -289,920.75 96,990.77 192,929.98 2027 2028 02/01/2030 278,940.00 -292,887.00 96,990.77 195,896.23 2028 202902/01/2031 276,307.50 -290,122.88 96,990.78 193,132.10 2029 203002/01/2032 278,387.50 -292,306.88 96,990.77 195,316.11 2030 203102/01/2033 279,877.50 -293,871.38 96,990.77 196,880.61 2031 203202/01/2034 280,757.50 -294,795.38 96,990.78 197,804.60 2032 203302/01/2035 276,007.50 -289,807.88 96,990.78 192,817.10 2033 203402/01/2036 280,935.00 -294,981.75 96,990.77 197,990.98 2034 2035 Total $2,835,539.38 (50,551.88)$2,924,236.88 $969,907.74 $1,954,329.14 *Special assessment revenue is based on assessments totaling $724,462.50 assessed at a rate of 5.55% (1.50% over the True Interest Cost, rounded to the nearest 0.05%), with equal annual payments spread over 10 years. VIII-08 Northland Securities, Inc.Page 9 Attachment 3 –Related Considerations Not Bank Qualified We understand the City (in combination with any subordinate taxing jurisdictions or debt issued in the City’s name by 501(c)3 corporations) anticipates issuing more than $10,000,000 in tax- exempt debt during this calendar year. Therefore,the Bonds will not be designated as “bank qualified” obligations pursuant to Federal Tax Law. Arbitrage Compliance Project/Construction Fund.All tax-exempt bond issues are subject to federal rebate requirements which require all arbitrage earned to be rebated to the U.S. Treasury. A rebate exemption the City expects to qualify for is the “24-month exemption.” Debt Service Fund.The City must maintain a bona fide debt service fund for the Bonds or be subject to yield restriction in the debt service fund. A bona fide debt service fund involves an equal matching of revenues to debt service expense with a balance forward permitted equal to the greater of the investment earnings in the fund during that year or 1/12 of the debt service of that year. The City should become familiar with the various Arbitrage Compliance requirements for this bond issue. The Resolution for the Bonds prepared by Bond Counsel explains the requirements in greater detail. Continuing Disclosure Type: Full Dissemination Agent: Northland Securities, Inc. The requirements for continuing disclosure are governed by SEC Rule 15c2-12. The primary requirements of Rule 15c2-12 actually fall on underwriters. The Rule sets forth due diligence needed prior to the underwriter’s purchase of municipal securities. Part of this requirement is obtaining commitment from the issuer to provide continuing disclosure. The document describing the continuing disclosure commitments (the “Undertaking”) is contained in the Official Statement that will be prepared to offer the Bonds to investors. The City has more than $10,000,000 of outstanding debt and is required to undertake “full” continuing disclosure. Full disclosure requires annual posting of the audit and a separate continuing disclosure report,as well as the reporting of certain “material events.”Material events set forth in the Rule, including, but not limited to, bond rating changes, call notices, and issuance of “financial obligations” (such as USDA loans, Public Finance Authority loans and lease agreements) must be reported within ten days of occurrence. Northland currently serves as dissemination agent for the City. We will assist with getting your annual report filed in compliance with full continuing disclosure regulations. Premiums In the current market environment, it is likely that bids received from underwriters will include premiums. A premium bid occurs when the purchaser pays the City an amount in excess of the par amount of a maturity in exchange for a higher coupon (interest rate). The use of premiums reflects the bidder’s view on future market conditions, tax considerations for investors and other factors. Ultimately, the true interest cost (“TIC”) calculation will determine the lowest bid, regardless of premium. VIII-08 Northland Securities, Inc.Page 10 A premium bid produces additional funds that can be used in several ways: •The premium means that the City needs less bond proceeds and can reduce the size of the issue by the amount of the premium. •The premium can be deposited in the Construction Fund and used to pay additional project costs, rather than used to reduce the size of the issue. •The premium can be deposited in the Debt Service Fund and used to pay principal and interest. Northland will work with City staff prior to the sale day to determine use of premium (if any).A consideration for use of premium is the bank qualification of the Bonds. Rating A rating will be requested from Standard & Poor’s (S&P). The City’s general obligation debt is currently rated "AA+" by S&P.The rating process will include a conference call with the rating analyst from S&P. Northland will assist City staff in preparing for and conducting the rating calls. VIII-08 Northland Securities, Inc.Page 11 Attachment 4 –Calendar of Events The following checklist of items denotes each milestone activity as well as the members of the finance team who will have the responsibility to complete it. Please note this proposed timetable assumes regularly scheduled City Council meetings. Date Action Responsible Party March 20 Project costs and sources of repayment provided by City to Northland. City Staff March 27 General Information Certificate relating to the Bonds sent to City for completion Northland April 10 City returns General Information Certificate to Northland City Staff April 24 Rating Request sent to S&P Preliminary Official Statement Sent to City for Sign Off Northland, City Staff April 28 Set Sale Resolution and Finance Plan Sent to City Northland, Bond Counsel Week of May 5 or May 12 Rating Call with S&P Northland, City Staff, Rating Agency May 5 Set Sale Resolution Adopted and Review of Finance Plan –7:00 p.m. Northland, Bond Counsel, City Council Action May 8 Comments on Preliminary Official Statement due to Northland City Staff April 2025 May 2025 Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat 1 2 3 4 5 1 2 3 6 7 8 9 10 11 12 4 5 6 7 8 9 10 13 14 15 16 17 18 19 11 12 13 14 15 16 17 20 21 22 23 24 25 26 18 19 20 21 22 23 24 27 28 29 30 25 26 27 28 29 30 31 June 2025 July 2025 Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat 1 2 3 4 5 6 7 1 2 3 4 5 8 9 10 11 12 13 14 6 7 8 9 10 11 12 15 16 17 18 19 20 21 13 14 15 16 17 18 19 22 23 24 25 26 27 28 20 21 22 23 24 25 26 29 30 27 28 29 30 31 Holiday VIII-08 Northland Securities, Inc.Page 12 Date Action Responsible Party May 22 Rating Received Northland, City Staff, Rating Agency May 27 Awarding Resolution sent to City Northland, Bond Counsel June 2 Bond Sale at 10:00 a.m. Bond Proposal Signed and Awarding Resolution adopted –7:00 p.m. Northland, City Council Action June 26 Closing on the Bonds (Proceeds Available)Northland, City Staff, Bond Counsel VIII-08 Northland Securities, Inc.Page 13 Attachment 5 -Risk Factors Property Taxes: Property tax levies shown in this Finance Plan are based on projected debt service and other revenues. Final levies will be set based on the results of sale. Levies should be reviewed annually and adjusted as needed. The debt service levy must be included in the preliminary levy for annual Truth in Taxation hearings. Future Legislative changes in the property tax system, including the imposition of levy limits and changes in calculation of property values,would affect plans for payment of debt service. Delinquent payment of property taxes would reduce revenues available to pay debt service. Special Assessments: Special assessments for the financed projects have not been levied at this time. This Finance Plan is based on the assumptions listed earlier in this report. Changes in the terms and timing for the actual assessments will alter the projected flow of funds for payment of debt service on the Improvement Portion of the Bonds. Also, special assessments may be prepaid. It is likely that the income earned on the investment of prepaid assessments will be less than the interest paid if the assessments remained outstanding. Delinquencies in assessment collections would reduce revenues needed to pay debt service. The collection of deferred assessments, if any, has not been included in the revenue projections. Projected assessment income should be reviewed annually and adjusted as needed. Utility Revenues: The City pledges the net revenues of the sanitary sewer, water and storm sewer utilities to the payment of principal and interest on the Revenue Portions of the Bonds. The failure to adjust rates and charges as needed and the loss of significant customers will affect available net revenues. If the net revenues are insufficient, the City is required to levy property taxes or use other revenues to cover the deficiency. Property taxes can only be used on a temporary basis and may not be an ongoing source of revenue to pay debt service. General: In addition to the risks described above, there are certain general risks associated with the issuance of bonds. These risks include, but are not limited to: •Failure to comply with covenants in bond resolution. •Failure to comply with Undertaking for continuing disclosure. •Failure to comply with IRS regulations,including regulations related to use of the proceeds and arbitrage/rebate.The IRS regulations govern the ability of the City to issue its bonds as tax-exempt securities and failure to comply with the IRS regulations may lead to loss of tax- exemption. VIII-08 MUNICIPAL ADVISORY SERVICE AGREEMENT BY AND BETWEEN THE CITY OF HASTINGS, MINNESOTA AND NORTHLAND SECURITIES, INC. This Agreement is made and entered into by and between the City of Hastings, Minnesota (hereinafter "Client") and Northland Securities, Inc., of Minneapolis, Minnesota (hereinafter "Northland"). WITNESSETH WHEREAS, the Client desires to have Northland provide it with advice on the structure, terms, timing and other matters related to the issuance of the General Obligation Bonds, Series 2025A (the “Debt”) serving in the role of municipal (financial) advisor, and WHEREAS, Northland is a registered municipal advisor with both the Securities and Exchange Commission (“SEC”) and the Municipal Securities Rulemaking Board (“MSRB”) (registration # 866- 00082-00), and WHEREAS, Northland will act as municipal advisor in accordance with the duties and responsibilities of Rule G-42 of the MSRB, and WHEREAS, the MSRB provides a municipal advisory client brochure on its website (www.msrb.org) that describes the protections that may be provided by the MSRB rules, including professional competency, fair dealing, duty of loyalty, remedies for disputes and how to file a complaint with an appropriate regulatory authority, and WHEREAS, the Client and Northland are entering into this Agreement to define the municipal advisory relationship at the earliest opportunity related to the inception of the municipal advisory relationship for the Debt, and WHEREAS, Northland desires to furnish services to the Client as hereinafter described, NOW, THEREFORE, it is agreed by and between the parties as follows: SERVICES TO BE PROVIDED BY NORTHLAND Northland shall provide the Client with services necessary to analyze, structure, offer for sale and close the Debt. The services will be tailored to meet the needs of this engagement and may include: Planning and Development 1.Assist Client officials to define the scope and the objectives for the Debt. 2.Investigate and consider reasonably feasible financing alternatives. 3.Assist the Client in understanding the material risks, potential benefits, structure and other characteristics of the recommended plan for the Debt, including issue structure, estimated debt VIII-09 Municipal Advisory Service Agreement 2 service payments, projected revenues, method of issuance, bond rating, sale timing, and call provisions. 4.Prepare a schedule of events related to the issuance process. 5.Coordinate with bond counsel any actions needed to authorize the issuance of the Debt. 6.Attend meetings of the Client and other project and bond issue related meetings as needed and as requested. Bond Sale 1.Assist the Client with the preparation, review and approval of the preliminary official statement (POS). 2.Assist the Client and bond counsel with preparing and publishing the Official Notice of Sale if required by law. 3.Prepare and submit application for bond rating(s) and assist the Client with furnishing the rating agency(s) with any additional information required to conduct the rating review. Assist the Client with preparing and conducting the rating call or other presentation. 4.Assist the Client in receiving the bids, compute the accuracy of the bids received, and recommend to the Client the most favorable bid for award. 5.Coordinate with bond counsel the preparation of required contracts and resolutions. Post-Sale Support 1.Assist the Client with the preparation of final official statement, distribution to the underwriter and posting on EMMA. 2.Coordinate the bond issue closing, including making all arrangements for bond printing, registration, and delivery. 3.Furnish to the Client a complete transcript of the transaction, if not provided by bond counsel. There are no specific limitations on the scope of this agreement. COMPENSATION For providing these services with respect to the Debt, Northland shall be paid a lump sum of $25,352. The fee due to Northland shall be payable by the Client upon the closing of the Bonds. Northland agrees to pay the following expenses from its fee: •Out-of-pocket expenses such as travel, long distance phone, and copy costs. •Production and distribution of material to rating agencies and/or bond insurance companies. •Preparation of the bond transcript. The Client agrees to pay for all other expenses related to the processing of the bond issue(s) including, but not limited to, the following: •Engineering and/or architectural fees. •Publication of legal notices. •Bond counsel and local attorney fees. •Fees for various debt certificates. •The cost of printing Official Statements, if any. •Client staff expenses. •Airfare and lodging expenses of one Northland official and Client officials when and if traveling for rating agency presentations. •Rating agency fees, if any. VIII-09 Municipal Advisory Service Agreement 3 •Bond insurance fees, if any. •Accounting and other related fees. It is expressly understood that there is no obligation on the part of the Client under the terms of this Agreement to issue the Debt. If the Debt is not issued, Northland agrees to pay its own expenses and receive no fee for any municipal advisory services it has rendered pursuant to this Agreement. CONFLICTS OF INTEREST Northland, as your Municipal Advisor, mitigates conflicts through its adherence to its fiduciary duty to the Client, which includes a duty of loyalty to the Client in performing all municipal advisory activities for the Client. This duty of loyalty obligates Northland to deal honestly and with the utmost good faith with the Client and to act in the Client’s best interests without regard to our own financial or other interests. In addition, because Northland is a broker-dealer with significant capital due to the nature of its overall business, the success and profitability of Northland is not dependent on maximizing short-term revenue generated from individualized recommendations to its clients but instead is dependent on long-term profitably built on a foundation of integrity, quality of service and strict adherence to its fiduciary duty. Furthermore, Northland’s municipal advisory supervisory structure leverages our long-standing and comprehensive broker-dealer supervisory processes and practices, and provides strong safeguards against individual representatives of Northland potentially departing from our regulatory duties due to personal interests. The disclosures below describe, as applicable, any additional mitigations that may be relevant with respect to any specific conflict disclosed below. Northland serves a wide variety of other clients that may from time to time have interests that could have a direct or indirect impact on the interests of the Client. For example, Northland serves as Municipal Advisor to other Municipal Advisory clients and, in such cases, owes a regulatory duty to such other clients just as it does to the Client under this Agreement. These other clients may, from time to time and depending on the specific circumstances, have competing interests, such as accessing the new issue market with the most advantageous timing and with limited competition at the time of the offering. In acting in the interests of its various clients, Northland could potentially face a conflict of interest arising from these competing client interests. In other cases, as a broker-dealer that engages in underwritings of new issuances of municipal securities by other municipal entities, the interests of Northland to achieve a successful and profitable underwriting for its municipal entity underwriting clients could potentially constitute a conflict of interest if, as in the example above, the municipal entities that Northland serves as underwriter or municipal advisor have competing interests in seeking to access the new issue market with the most advantageous timing and with limited competition at the time of the offering. However, none of these other engagements or relationships would impair Northland’s ability to fulfill its regulatory duties to the Client. The compensation for services provided in this Agreement is customary in the municipal securities market, however, it may pose a conflict of interest. The fees due under this Agreement are in a fixed amount established at the outset of the Agreement. The amount is usually based upon an analysis by Client and Northland of, among other things, the expected duration and complexity of the transaction and the Scope of Services to be performed by Northland. This form of compensation presents a VIII-09 Municipal Advisory Service Agreement 4 potential conflict of interest because, if the transaction requires more work than originally contemplated, Northland may suffer a loss. Thus, Northland may recommend less time-consuming alternatives, or fail to do a thorough analysis of alternatives. This conflict of interest is mitigated by supervisory policies and procedures to ensure the scope of services within the transaction align with other comparable engagements. By executing this Agreement, the Client acknowledges and accepts the potential conflicts of interest posed by the compensation to Northland. Northland does not participate in any payments to be retained, nor participate in any fee splitting agreements or arrangements. Northland is a subsidiary of Northland Capital Holdings, Inc. First National of Nebraska, Inc. (“FNNI”), is the parent company of Northland Capital Holdings, Inc. and First National Bank of Omaha. Under FNNI, Northland and its affiliates are comprised of a securities firm and a commercial bank. These entities provide investment banking, asset management, financing, financial advisory services and other commercial and investment banking products and services to a wide range of corporations and individuals. In addition, Northland and its affiliates currently have, and may in the future have, investment and commercial banking, trust, and other relationships with parties that may relate to assets of, or be involved in the issuance of securities and/or instruments by, the Client and its affiliates. In the ordinary course of their respective businesses, Northland and its affiliates have engaged, and may in the future engage, in transactions with, and perform services for, the Client and its affiliates for which they received or will receive customary fees and expenses. Northland is a broker-dealer that engages in a broad range of securities-related activities to service its clients, in addition to serving as a Municipal Advisor or Underwriter. Such securities-related activities, which may include but are not limited to the buying and selling of outstanding securities, including securities of the Client, may be undertaken on behalf of, or as counterparty to, the Client, and current or potential investors in the securities of the Client. These other Northland clients may, from time to time and depending on the specific circumstances, have interests in conflict with those of the Client, such as when their buying or selling of the Client’s securities may have an adverse effect on the market for the Client’s securities. However, any potential conflict arising from Northland effecting or otherwise assisting such other clients in connection with such transactions is mitigated by means of such activities being engaged in on customary terms through other business units of Northland that operate independently from Northland’s Municipal Advisory business, thereby reducing or eliminating the likelihood that the interests of such other clients would have an impact on the services provided by Northland to the Client under this Agreement. Northland has policies and procedures in place to ensure that Northland as a broker-dealer or its affiliates are not participating in bidding or determining market prices for the Client’s transaction that is covered under this Agreement. Northland Bond Services is a division of First National Bank of Omaha. Northland Bond Services provides paying agent services to issuers of municipal bonds. The Client is solely responsible for the decision on the source of paying agent services. Any engagement of Northland Bond Services is outside the scope of this Agreement. No compensation paid to Northland Bond Services is shared with Northland Securities. VIII-09 Municipal Advisory Service Agreement 5 Northland is not aware of any additional material conflicts of interest that could reasonably be anticipated to impair Northland’s ability to provide advice to or on behalf of the Client in accordance with the standards of conduct for municipal advisors. LEGAL AND DISCIPLINARY ACTIONS The Client can find information about legal or disciplinary events reported by the Securities and Exchange Commission contained in Form MA or Form MA-I related to Northland at www.sec.gov/municipal/oms-edgar-links. SUCCESSORS OR ASSIGNS The terms and provisions of this Agreement are binding upon and inure to the benefit of the Client and Northland and their successors or assigns. TERM OF THIS AGREEMENT This Agreement may be terminated by thirty (30) days written notice by either the Client or Northland and it shall terminate sixty (60) days following the closing date related to the issuance of the Debt. Dated this 28th day of April, 2025. Northland Securities, Inc. By: Tammy Omdal, Managing Director By: Jessica Green, Managing Director By: Craig Jones, Senior Managing Director, Head of Public Finance VIII-09 Municipal Advisory Service Agreement 6 City of Hastings, Minnesota By: _________________________________ Its: _________________________________Finance Manager Digitally signed by Chris EitemillerDN: OU=Finance, O=City of Hastings, CN=Chris Eitemiller, E=ceitemiller@hastingsmn.govReason: I am the author of this documentLocation: Date: 2025.04.29 15:50:27-05'00'Foxit PDF Editor Version: 2024.4.1 Chris Eitemiller VIII-09 City Council Memorandum To: Mayor Fasbender & City Council Members From:John Caven, P.E.–Assistant City Engineer Date:May 5, 2025 Item:Conduct Public Hearing to Vacate, Rescind, Terminate, and Release the Permanent Storm Water Easement Recorded as Document No. 891566 COUNCIL ACTION REQUESTED Council is requested to conduct a public hearing to vacate, rescind, terminate and release a permanent stormwater easement. BACKGROUND The National Guard Armory gained City approval to actively perform parking lot improvements on their site. Stormwater basins were proposed to be added as part of the project,per City Ordinance 152. An outflow storm pipe was designed to connect the storm water basin to the adjacent storm sewer infrastructure located on City property. An easement was required and was recorded on March 11, 2025. During construction, a private utility was unexpectedly found in the location of the stormwater basin. The timeline for the utility company to move the line would greatly delay the project. The pond was redesigned to allow the outflow pipe to connect into a storm sewer further away,not located on City property. The easement is no longer needed. COUNCIL ACTION REQUESTED Council is requested to conduct the public hearing for the project and vacate, rescind, terminate and release the permanent storm water easement. ATTACHMENTS ➢Resolution Vacating, Rescinding, Terminating, and Releasing a Permanent Storm Water Easement Recorded as Document No. 891566. IX-01 1 CITY OF HASTINGS, MINNESOTA CITY COUNCIL RESOLUTION ____________ A RESOLUTION VACATING,RESCINDING, TERMINATING,AND RELEASING A PERMANENT STORM WATER EASEMENT RECORDED AS DOCUMENT NO. 891566, PERTAINING TO REAL PROPERTY IN THE CITY OF HASTINGS, MINNESOTA WHEREAS, the City granted a Permanent Storm Water Easement on certain real property which was recorded with the Dakota County Registrar of Titles on March 11, 2025 as Document No.891566 (“Permanent Storm Water Easement”); WHEREAS,pursuant to Minnesota Statutes §412.851, the City Council may by resolution vacate any street, alley, public grounds, public way, or any part thereof on its own motion adopted by a four-fifths votes of all members of the council; and WHEREAS, the real property upon which the Permanent Storm Water Easement was recorded is legally described as Lot 5, Block 2, HASTINGS INDUSTRIAL PARK NO. 1, Dakota County, Minnesota; and WHEREAS, the City desires to vacate, rescind, terminate and release, the Permanent Storm Water Easement legally described as follows: An easement for storm sewer utility services over that part of Lot 5, Block 2, HASTINGS INDUSTRIAL PARK NO. 1, according to the recorded plat thereof on file in the Office of the Dakota County Recorder, Minnesota, described as follows: Commencing at the northwest corner of said Lot 5; thence South 26 degrees 44 minutes 06 seconds East, bearing based on the Dakota County Coordinate Database NAD83, 151.24 feet along the West line of said Lot 5 to the point of beginning of the easement being described; thence North 60 degrees 53 minutes 23 seconds East 29.88 feet; thence South 29 degrees 06 minutes 37 seconds East 30.00 feet; thence South 60 degrees 53 minutes 23 seconds West 31.13 feet to said West line of Lot 5; thence North 26 degrees 44 minutes 06 seconds West 30.03 feet along said West line of Lot 5 to the point of beginning. Subject to easements, reservations, or restrictions of record if any. and depicted on Exhibit A, attached hereto and incorporated herein; and NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Hastings as follows: 1.That pursuant to Minnesota Statutes §412.851, it hereby vacates the Permanent Storm Water Easement described above and depicted on Exhibit A. 2.That said vacation has no relationship to the City’s Comprehensive Plan and therefore IX-01 2 the Hastings City Council has dispensed with the requirements of Minnesota Statutes §462.356, subd. 2, that may require a Comprehensive Plan compliance review of said vacation that may constitute a disposal of real property pursuant to §462.356, subd. 2. 3.That the City Clerk shall prepare a notice to be presented to the Dakota County Auditor reflecting the completion of the proceedings herein. Adopted this 5th day of May, 2025. __________________________ Mary Fasbender, Mayor Attest: ___________________________ Kelly Murtaugh, City Clerk IX-01 A-1 EX H I B I T A DE P I C T I O N OF PE R M A N E N T S T O R M W A T E R EA S E M E N T IX - 0 1 SKETCH AND DESCRIPTION PART OF LOT5,BLOCK 2,HASTINGS INDUSTRIALPARK NO.1, SECTION34,TOWNSHIP 115,RANGE 17. DAKOTA COUNTY,MINNESOTA WiDSETH-ARCKTKTS••SOfWRTS.fWM=YQRS City Council Memorandum To: Mayor Fasbender & City Council Members From:Cody Mathisen –City Engineer Date:May 5, 2025 Item:Contract Award for 2025 Sanitary Sewer Lining Program COUNCIL ACTION REQUESTED Council is requested to adopt the attached resolution to award a contract for the 2025 Sanitary Sewer Lining Program. BACKGROUND INFORMATION The Sanitary Sewer Lining Program is executed every other year as part of an ongoing commitment to rehabilitate aging or deficient sanitary sewer mains. A map of the project areas is attached for reference. The bid package also includes lining work for State Street and Prairie Street,which are within the 2025 Neighborhood Infrastructure Project limits. This approach was taken to achieve economies of scale and secure competitive pricing for all 2025 lining work. The City received five bids for this project on April 18th, 2025, with the low bid being received from Hydro-Klean LLC in the amount of $532,997.80. A summary of the bids is listed below. Bidder Total Bid Hydro-Klean LLC $532,997.80 Visu-Sewer, Inc. –Pewaukee, WI $610,894.00 SAK Construction, LLC $618,490.00 Musson Brothers Inc. –Waukesha, WI $629,917.00 Insituform Technologies –Chesterfield, MO $740,866.65 CONTRACTOR QUALIFICATION The City has verified Hydro-Klean’s qualifications based on their experience with similar sewer lining projects. Staff also confirmed that Hydro-Klean has a valid bid bond. FINANCIAL IMPACT The Sanitary Sewer Lining Program has a budget of $450,000, and the 2025 Neighborhood Infrastructure Improvements budget will supplement this number by an additional $130,000, bringing the total budget available to $580,000. The low bid from Hydro-Klean LLC allows the project to be completed within the combined 2025 budget.The sewer enterprise fund in combination with utility revenue bonds will be utilized as the funding source for this work. STAFF RECOMMENDATION Staff recommends the City Council adopt the attached resolution awarding the contract to Hydro-Klean LLC in the amount of $532,997.80. ATTACHMENTS Resolution Receiving Bids and Awarding Contract Project Map IX-02 CITY OF HASTINGS DAKOTA COUNTY,MINNESOTA RESOLUTION NO. RESOLUTION RECEIVING BIDS AND AWARDING CONTRACT FOR PROJECT 2025-3 2025 SANITARY SEWER LINING PROGRAM WHEREAS, pursuant to an advertisement for bids for Project 2025-3,the 2025 Sanitary Sewer Lining Program project, and bids were opened on April 18, 2025 and tabulated according to law, and the following bids were received: Bidder Total Bid Hydro-Klean LLC $532,997.80 Visu-Sewer, Inc. –Pewaukee, WI $610,894.00 SAK Construction, LLC $618,490.00 Musson Brothers Inc. –Waukesha, WI $629,917.00 Insituform Technologies –Chesterfield, MO $740,866.65 and WHEREAS, it appears that Hydro-Klean LLC is the lowest responsible bidder. NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HASTINGS AS FOLLOWS: 1.The Mayor and Clerk are hereby authorized and directed to enter into a contract with Hydro-Klean LLC. 2.The total amount of the contract is hereby declared to be $532,997.80. ADOPTED BY THE CITY COUNCIL OF HASTINGS, MINNESOTA, THIS 5TH DAY OF MAY, 2025. Ayes: Nays: Mary D. Fasbender, Mayor ATTEST: Kelly Murtaugh, City Clerk SEAL IX-02 IX-02 2025 Sewer Lining Program Project Area Map Proposed CIPP Lining City Council Memorandum To:Mayor Fasbender and City Council From:John Hinzman, Community Development Director Date:May 5, 2025 Item:Resolution: Special Use Permit –Cannabis Retail Sales –Joshua Bruns, Minneapolis Kombucha –215 Ramsey Street Council Action Requested: Consider action on the Special Use Permit (SUP)request for cannabis retail sales for Joshua Bruns, Minneapolis Kombucha on property owned by Surrey Group LLC and located at 215 Ramsey Street. 1)Deny the request. The Council should cite specific reasons for the denial relating to the inability to establish conditions to ensure protection of public health, safety or general welfare. Direct staff to prepare a resolution for denial of the request to be considered at the May 19, 2025 City Council meeting. OR 2)Approve the request. Adopt the attached resolution approving the action. Approval of an SUP requires six of seven council members Advisory Commission Review: The Planning Commission voted 4-1 (Messina, nay)to recommend denial of the request at the April 28, 2025 meeting.During the public hearing, Scott Northard of the Hastings Prescott Arts Council (HPAC) stated HPAC operations involve children and adjoin the proposed site.The location and proximity don’t seem to fit. Barb Hollenbeck stated she is owner of SC Toys and the proximity to her store is a concern as well as the proximity to senior housing and the AA club. The city has spent time making downtown family friendly. Cathy O’Keefe of HPAC stated opposition to the use. Joshua Bruns, applicant, stated careful thought has been given to prepare a security and operations plan to mitigate neighbor concerns. Commissioners discussed neighboring park facilities and why they were exempt from cannabis setback requirements established elsewhere in the City, and the proposed use’s proximity to youth attractions. Special Use Permit (SUP) Determination Certain activities within zoning districts are identified as “Special Uses” requiring issuance of a Special Use Permit (SUP) prior to operation. The Planning Commission must hold a public hearing and provide a recommendation to the City Council on the issuance of a SUP. SUP’s may be approved subject to the establishment of conditions and safeguards as appropriate under the zoning code. SUP’s may be denied when the use is determined not be in harmony with the 堭䌭〱 purpose and intent of the Zoning Code. Specific written reasons for the denial must be adopted to support the denial. Written reasons for denial must relate to the inability to establish conditions to ensure protection of public health, safety or general welfare. Issuance of SUP Does Not Guarantee Right to Operate The following actions are necessary prior to operating a retail cannabis business: •Special Use Permit from the City –Necessary to demonstrate compatibility with the City’s Zoning Code on the general licensing application through the Minnesota Office of Cannabis Management (OCM). •License from OCM –Includes submittal of application and completion of background check. •Registration with the City –Chapter 117 of the City Code regulates registration through the City Clerk’s office. The Ordinance only allows one retail cannabis business within the City. Determination of registration in cases of multiple licenses from OCM will be determined by the City Council at a later date. Attachments: •Resolution for Approval –SUP •Planning Commission Staff Report –April 28, 2025 堭䌭〱 HASTINGS CITY COUNCIL RESOLUTION NO._________ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HASTINGS GRANTING A SPECIAL USE PERMIT FOR THE RETAIL SALE OF CANNABIS AT 215 RAMSEY STREET FOR JOSHUA BRUNS, MINNEAPOLIS KOMBUCHA WHEREAS, Joshua Bruns, Minneapolis Kombucha has applied for a Special Use Permit for the retail sales of cannabis on property owned by Surrey Group LLC located at 215 Ramsey Street, PID 19-32150-15-062. The property is legally described as the south 70 feet of Lot 6, Block 15, TOWN OF HASTINGS, Dakota County, Minnesota; and WHEREAS, on April 28, 2025 the Hastings Planning Commission held a public hearing and recommended denial of the action as presented; and WHEREAS, the City Council reviewed the request. NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HASTINGS AS FOLLOWS: The City Council hereby approves the action as presented subject to the following conditions: 1)Obtaining a license for retail cannabis sales through the Minnesota Office of Cannabis Management (OCM). 2)Registering the license for retail cannabis sales with the Hastings City Clerk’s Office. 3)Adherence to Hastings City Code Chapter 117 –Cannabis Businesses and Chapter 155.07, Subd. J –Cannabis Businesses. 4)Retail sales of cannabis are allowed from 10:00am to 9:00pm only. 5)Cannabis use cannot violate City Code Chapter 95 regarding public nuisances. 6)The cannabis use shall have no more than two signs 堭䌭〱 7)Blinking, moving, and flashing signs that are visible from the exterior of the building are prohibited. 8)No interior sign shall be visible from the exterior of the building. 9)Approval shall not be implied as preference of or granting permission to operate a retail cannabis facility in conjunction with OCM licensing and City registration. 10)Approval of the Security Plan by the Hastings Chief of Police. 11)Approval is subject to a one-year Sunset Clause; if significant progress is not made towards implementation of the proposed use within one year of City Council approval, the approval is null and void. Adopted by the Hastings City Council on May 5, 2025. ATTEST:__________________________ Mary Fasbender, Mayor ________________________________ Kelly Murtaugh, City Clerk (City Seal) I HEREBY CERTIFY that the above is a true and correct copy of resolution presented to and adopted by the City of Hastings, County of Dakota, Minnesota, on the 5th day of May, 2025, as disclosed by the records of the City of Hastings on file and of record in the office. ________________________________ Kelly Murtaugh, City Clerk This instrument drafted by: City of Hastings (JH) 101 4th St. E. Hastings, MN 55033 堭䌭〱 Planning Commission Memorandum To:Planning Commission From:John Hinzman, Community Development Director Date:April 28, 2025 Item:Public Hearing –Special Use Permit (SUP) –Cannabis Retail Sales –Joshua Bruns, Minneapolis Kombucha -215 Ramsey Street REQUEST The Planning Commission is asked to take the following actions related to the Special Use Permit (SUP) application of Joshua Bruns, Minneapolis Kombucha to conduct cannabis retail sales on property owned by Surrey Group LLC located at 215 Ramsey Street: 1)Hold a public hearing. 2)Review the SUP application and provide a recommendation to the City Council. BACKGROUND INFORMATION Cannabis Retail vs. Lower Potency Hemp Edible On December 2, 2024 the City Council adopted an ordinance amendment for cannabis and lower-potency hemp edible uses. The ordinance established parameters for retail sales, manufacturing, and wholesaling of cannabis products. Regulations for lower-potency hemp edible uses (which were established by the Council in November 2023) were further clarified. “Cannabis Businesses” in the 2023 code are now classified as lower-potency hemp edible uses and subject to potency limits. Special Use Permits issued for cannabis retail businesses in 2024 are now classified as “lower-potency hemp edible” businesses. Issuance of SUP Does Not Guarantee Right to Operate The following actions are necessary prior to operating a retail cannabis business: •Special Use Permit from the City –Necessary to demonstrate compatibility with the City’s Zoning Code on the general licensing application through the Minnesota Office of Cannabis Management (OCM). •License from OCM –Includes submittal of application and completion of background check. •Registration with the City –Chapter 117 of the City Code regulates registration through the City Clerk’s office. The Ordinance only allows one retail cannabis business within the City. The City Council will need to determine the method for registration in cases of multiple licenses from OCM. 堭䌭〱 Notification and Public Hearing Notification of the request was mailed to all property owners within 350 feet. The notice included an invitation to the Planning Commission public hearing. Staff have not received any comments at this time. Comprehensive Plan Classification The 2040 Comprehensive Plan designates the property as Mixed Use. The proposed use is consistent with the plan. Zoning Classification The property is C-3 –Community Regional Commerce. The C-3 District allows for cannabis retailers as a special use. Adjacent Zoning and Land Use Direction Property Use Zoning Comp Plan North Hastings Prescott Arts Council C-3 Mixed Use East Vacant Home C-3 Mixed Use South 3rd Street Mississippi Terrace Senior Home RMU Mixed Use West Ramsey Street Office –National Facilities Solutions C-3 Mixed Use Existing Condition Cannabis sales would occur within a portion of an existing building currently operated as Tippy’s Corner Store. The proposed space is owned by Surrey Group LLC with the north half of the building owned by the Hastings Economic Development and Redevelopment Authority (HEDRA). Surrey and HEDRA jointly own the parking lot adjacent to the building. SPECIAL USE PERMIT REVIEW Background Hastings City Code Chapter 155.30, Subd. C.10 –allows cannabis retailers as a “special use” within the C-3 Zoning District, subject to the requirements of 155.07, Subd. J.5 as follows: 5.Performance Standards. All cannabis businesses must comply with the following: a.Retail sales of cannabis and lower-potency hemp edible products are permitted from 10:00 a.m. to 9:00 p.m., seven days a week. Retail sales of lower-potency beverages associated with an on-sale or off-sale liquor license are permitted during the hours of operation of the associated liquor license. b.No cannabis use shall be allowed as part of any Adult Use Establishment business, as defined in City Code Section 114.21. c.Cannabis uses cannot violate City Code Chapter 95 regarding public nuisances. 堭䌭〱 d.Distance Restrictions. Distances from a cannabis use or lower-potency hemp edible use are measured from the storefront of a retail use and from the property line of all other cannabis uses and shall comply as provided below. (1) There must be at least one thousand feet (1,000’) between each cannabis use. (2)The location of the use must be located: (a)More than five hundred feet (500’) from a school as measured from property line of the school to the use; (b)More than five hundred feet (500’) from a residential treatment facility, as measured from the property line of the facility to the use; (c)More than five hundred feet (500’) from an attraction within a public park that is regularly used by minors, such as, but not limited to a playground, athletic field, athletic court, picnic area or restrooms, pavilion or park building, disc golf features, as each is measured from the location of the public park attraction to the use. However, such distance restrictions shall not extend across Highway 61 or Highway 55 but shall terminate if it intersects with such highways. (d)All buildings used for manufacturing, production, testing, processing, or warehousing of cannabis must be setback a minimum of five hundred feet (500’) from a residential zoning district or residential use as measured from the property line of the cannabis use to the property line of the nearest residential zoning district or residential use. (3)Exceptions to distance restrictions: (a)Lower-potency hemp edible retail uses shall be five hundred feet (500’) from other lower-potency hemp edible retail uses and five hundred feet (500’) from all other cannabis uses but otherwise shall be exempt from the distance requirements in City Code 155.07.J.5.e.(2). (b)On-sale and off-sale liquor establishments selling lower-potency beverages and that have a lower-potency hemp edible City Registration and State License shall be exempt from the distance requirements in City Code 155.07.J.5.e.(1) and 155.07.J.5.(2) and they do not count against other uses for purposes of City Code 155.07.J.5.e.(1). (c)Cannabis retail uses located east of Vermillion Street and north of 4th Street and west of Bailey Street in the DC Downtown Core or C-3 Community Regional Commerce zoning districts shall be exempt from the distance requirements of City Code 155.07.J.5.e.(2)(c). (d)Cannabis cultivation uses shall comply with the distance requirements in City Code 155.07.J.5.e.(1) but shall be exempt from the distance requirements in City Code 155.07.J.5.e.(2). e.Signs must comply with the standards in City Code 155.08 for the relevant zoning district in which the business is located, except for the following: (1)No cannabis use shall have more than two (2) signs; (2)Blinking, moving, and flashing signs that are visible from the exterior of the building are prohibited; (3)No lower-potency hemp edible use shall advertise the lower-potency hemp edible products on more than one (1) exterior sign; (4)No interior sign shall be visible from the exterior of the building. 堭䌭〱 f.Cannabis uses must meet the minimum parking requirements for each type of use as stated in City Code for that use, for example, retail must meet the retail requirements, manufacturing must meet the manufacturing parking requirements. If there is a combination of uses at the same location, the use that requires the largest number of spaces must be met. g.A security plan must be submitted to and approved by the Chief of Police to address security issues in order to protect the public health, safety, and general welfare. The security plan must include, but is not limited to, addressing issues surrounding parking, traffic, securing of monetary transactions, building security and alarm systems both internal and external, screening, lighting, window and door placement, landscaping, and hours of operation. Analysis •The site is exempt from setback requirements per City Code 155.07, Subd. J.5.d.3.c •The site meets the minimum parking requirements. •A security plan has been reviewed by the Chief of Police. Special Use Permit Requirements Special Use Permit review is outlined in Chapter 30.02, Subd. E.2.b.5 of the City Code and subject to adherence to the following (staff analysis appears in red) 1.Ingress and egress to property and proposed structures thereon with particular reference to automotive and pedestrian safety and convenient traffic flow and control, and access in case of fire or catastrophe;Ingress and egress to the property will be unchanged and is served by a shared private parking lot entrance with an entrance to 3rd Street and the alley The sale of cannabis products on site will not require changes to ingress and egress. 2.Off-street parking and loading areas where required, with particular attention to division (E)(2)(b)5.a. above, and the economic, noise, glare, or odor effects of the special use on adjoining properties and properties generally in the district;Parking and loading is adequate,and the proposed use will not require changes and is not anticipated to cause negative effect on surrounding properties. 3.Refuse and service areas, with particular reference to items divisions (E)(2)(b)5.a. and (E)(2)(b)5.b. above;The sale of cannabis products will not increase the need for refuse areas. 4.Utilities, with reference to locations, availability, and compatibility;Utility service is adequate and will not change with cannabis sales. 5.Screening and buffering with reference to type, dimensions, and character;Screening and buffering is adequate and will not change with cannabis sales. 6.Signs, if any, and proposed exterior lighting with reference to glare, traffic safety, economic effect, and compatibility and harmony with properties in the district;No cannabis use shall have more than two signs, blinking and flashing signs are prohibited, and interior signs may not be visible from the exterior of the building. 7.Required yards and other open space; Yards and open space are unchanged. 8.General compatibility with adjacent properties and other properties in the district.Property abuts commercial and high density zoned and guided properties. 堭䌭〱 Recommendation Approval of the Special Use Permit is recommended subject to the following requirements: 1)Obtaining a license for retail cannabis sales through the Minnesota Office of Cannabis Management (OCM) 2)Registering the license for retail cannabis sales with the Hastings City Clerk’s Office. 3)Adherence to Hastings City Code Chapter 117 –Cannabis Businesses and Chapter 155.07, Subd. J –Cannabis Businesses. 4)Retail sales of cannabis are allowed from 10:00am to 9:00pm only. 5)Cannabis use cannot violate City Code Chapter 95 regarding public nuisances. 6)The cannabis use shall have no more than two signs 7)Blinking, moving, and flashing signs that are visible from the exterior of the building are prohibited. 8)No interior sign shall be visible from the exterior of the building. 9)Approval shall not be implied as preference of or granting permission to operate a retail cannabis facility in conjunction with OCM licensing and City registration. 10)Approval of the Security Plan by the Hastings Chief of Police. 11)Approval is subject to a one-year Sunset Clause; if significant progress is not made towards construction of the proposal within one year of City Council approval, the approval is null and void. Attachments •Location Map •Application Narrative •Exterior Changes •Floor Plan •Security Plan •Employee Security Training •Application 堭䌭〱 LOCATION MAP SITE PICTURE 堭䌭〱 To:The City and citizenry of Hastings,MN From:Joshua R Bruns,Minneapolis Kombucha Date:04/01/2025 Subject:Land Use Application Description of Request This application is in regards to a special use permit for a cannabis retail registration with the City of Hastings,Minnesota.The State license and City registration sought are detailed and governed by Hasting City Code Chapter 30,Chapter 117,Chapter 155,MN Statute 342,the MN Office of Cannabis Management (OCM),and the State of MN.Pursuant 155.30 (C)and 30.02 Subd.E.2,City of Hastings special use permits,and this case in particular,require a State application fee,application qualification,a federal and state background check,preliminary approval,site submission and registration,City zoning approval,a public hearing,City Council approval,OCM inspection and final license approval,and finally a City registration application and approval. The applicant’s business,Minneapolis Kombucha,formally requests the City of Hastings consider initiating a special use permit to operate one cannabis retail storefront at the listed address via this Land Use Application.* Pertaining to how land is used and developed,it is the hopes of this business to learn and grow with the City,State,and the citizens of Hastings.Building this business from a hope and a prayer and adjusting throughout the licensing process and into the open market alongside zoning regulations has fruitfully produced the listed address.It may not be perfect.But it may offer some clever advantages if intentionally accentuated by city design and development.Citizen input too can offer constructive solutions to most all potential problems.Tangibly though,the City can capitalize on a number of items: The slowing of traffic over the HWY 61 bridge and into city-proper is an obvious boon to a number of Hastings businesses. -Slower traffic would increase the awareness of travelers to both city landmarks and businesses. -Slowing traffic into and out of the city is a bonus for traffic safety.Naturally incorporating a turn lane,a lane divider,a SLOW traffic sign,vegetation,or other traffic guides preserves the quality,serenity,facade,and overall enjoyment of the riverfront-side of town.The bridge is better enjoyed at 25 mph as well.We might in this way balance this section of the city and preserve the character and identity of downtown Hasting.Turning people downtown who drove there slow in their cars has clear advantages. Customers of my business will find themselves just a stone throw from the edge of historic downtown,increasing revenue and foot traffic for those businesses. -The proposed location is fortuitously adjacent to 3 large parking lots,seamlessly integrating the clients of my business into the clients of all the other downtown businesses. This special use permitted business will bring some extra character to a subsequently expanding historic downtown,promoting customer and passersby interests in historic downtown,and extending the walkable area of historic downtown and the city in general,increasing the value of other neighboring properties. The proposed location could engender the growth of a commercial development hub for other businesses that compliment my business or historic downtown in general,like a restaurant or a number of other business ideas. -As far as planned and organized growth,this location is just outside historic downtown,naturally and seamlessly growing the economic district outwards. -This location doesn’t shamefully cast cannabis retail to the outskirts of towns,but rather embraces and incorporates cannabis into the city’s general layout,clearly capitalizing on the increase in traffic in the process. The current grocery store at the proposed location isn’t doing great,and the lessee is eager to partner in my business.He literally wants a stake in equity ownership (the State allocated 35%allowable sale of businesses like mine to be sold for reasons just like this,to get the business further off the ground).It is this sort of inclusion that defines the ethos of my business. Generally speaking land use is a very important consideration,and my team researched it deeply.Adhering to buffers and zones enumerated in City Code did unfortunately limit some location choice,however this proposed location does offers many valuable attributes.Moreover,it is not out of the realm of possibilities,after agreement with stakeholders (and many a little business liquidity),to find a new,more palatable location after buffers are eased subsequent the OCM lower-potency hemp edible retailer application window opening.However we loathe the opportunity to put another business out of business.The proposed location I think is a thoughtful and hard-earned proposal that hopefully should overcome the many and righteous concerns of the City and citizenry. Cannabis is currently unique and exceptional in Minnesota,justly categorizing it as a special use.Some might argue that it is just another commodity,and a healthy one at that,soon to be categorized alongside health or other commodity-based retailers. But there are real concerns.And this business and its owner(s)are fundamentally concerned and interested in how the business can better serve the City.The business is dedicated to quality community development,guided pedestrian traffic,and altruistic community influence.City design,layout,and usage I think should be deeply and inclusively considered,and I am thrilled to offer support and ideas in any way.Consider too that Josh,the business owner,is eager to embrace transparent and inclusive X-C-01 planning,to work alongside interested members of the community,who are welcome to help finalize a security plan for the chief of police.Thorough review and approval of the site’s layout and design before security installation is I think inherent the law,not to mention pragmatic business operating plans.The goal is to deter crime in the first place,not catch people in the act. Both simple and complicated designs exist and work together that mitigate and overcome these concerns and realities. Moreover our cannabis signs will be tasteful,resembling art and professionalism,not cartoon cannabis characters.My partners and I are professionals.We eschew sales to youth and intoxicated people.Most cannabis retail sales are thankfully via digital marketing. To ease our transition into a legal market I have always considered limiting operating hours limited 10 am to 1 pm as the market launches.I am also considering minimum purchases to reduce traffic,alongside orders for pickup (and deliveries,based on local ordinance)to reduce customer build-up (if any,hopefully some!!).The parking lots adjacent to the east and west,both owned by the City according to Dakota County GIS,could act as supplemental mitigation for concerns of too much traffic in the business district,not to mention meeting business parking requirements detailed in the zoning code. Considering land use,this proposed retail establishment offers minimal threats to environmental quality.This will however be addressed in our very comprehensive SOPs,including an odor mitigation plan.I aim to offer quality products too,from quality cultivators and manufacturers who regularly test and impose control standards on all their inventory.Pollution and habitat destruction and/or influence are not inherent this retail business plan,but we will hold our suppliers accountable.Its good, ethical business.We plan to have a very small ecological footprint,even pursing quality packaging,increased deliveries,and minimum purchase quantities.Alongside adjacent property owners we certainly may engage in some landscaping,but these too would probably include rain gardens and dense vegetation.(Josh and the bank financed his home in Minneapolis about 2.5 years ago.Since then he has planted 19 six-foot fruit trees and nearly 40 berry bushes in his small,city lot.Expect similar motivations from Josh that bolster our natural landscape.) Per OCM’s “Guide for Local Governments,”my business and site layout and plans will come alongside my final SOPs and other licensing application documents,being forwarded to the City upon my site registration with OCM.This way City Council can hopefully review the Land Use Application,zoning compliance approval,and finalized application documents side-by-side. However the City and the entire citizenry as a whole know the City best,and it will be a pleasure to include every person’s interests while we develop and adjust this new industry.Forecasting how land is developed and used should be managed and influenced by the City and all all the citizens,and this business remains malleable and committed to their interests.Another well-worn idea is to adjust to later realities,gathering and using data as a guide. The business’s inclusive ownership structure ensures local product will be available,bolstering the local economy of agriculture and manufacturing,not to mention delivery,transportation,and other brick-and-mortar retail engagements subsequent visits to this new business.Consider the proposed address,215 Ramsey,just outside downtown.It could be a little hub where cannabis is accepted in the community,which would encourage the growth of such a hub,or market,that is the definition of a market economy. The character and identity of old-downtown is preserved as this business is tucked over on the corner of that area.But we could even consider allowing an adult-use business that permitted use indoors to open nearby,embracing the new industry and subsequent economic stimulation.These are just ideas I’m brainstorming tonight with such little preparation.I can’t wait to hear the thoughts of our citizenry.I hope they will accept a more edited version of this summary in the near future! The City Council has not determined a method for choosing applicants.Josh,the applicant,will obviously offer several perspectives for why it is his successful application that should be validated into City registration. Josh is the fittest applicant under MN law.He is first for a reason.His verification,application,networking, business plans,and fundraising have been arguably nearly flawless. He has nearly 40 potential active and passive owners and interested parties,many simply waiting on OCM approval to invest.Many have already increased the value of this business.And this business has real trickle down effects. Moreover these partners just waiting to labor towards business success are exceptionally valuable themselves and nearly guarantee a quality cannabis business.We have support in nearly every aspect of this business,from CPAs and law professionals to manufacturing and retail experts. Josh and his team have proven they are malleable and pragmatically respond to market pressures and the text of each municipal law.Our comprehensive search for a home municipality over these last 8 months has revealed a most fitting home:The City of Hastings. Let it be argued that this business brings professionalism,experience,consulship,business expertise,legal compliance acumen,and an eagerness to follow the law,which is all proven by this early application,composed solely and entirely by Josh,a qualified,thoughtful,flexible,and creative microbusiness applicant,who is flanked by around 40 eager investor-laborers. It was no small business feat for this humble fruit farmer to submit this land use and special use application.Let this be further proof of my preparedness and malleability.Responding to market demand has always been a requirement to X-C-01 stay afloat.Kombucha has its benefits,but they are economically limited.This was a small business.I have been aiming to make it medium-small for nearly 2 years now. This isn’t a big box cannabis business.Josh,the applicant and majority stakeholder literally composed the entirety of his own application,hand delivering 5,000 leaflets over a year ago that later secured many of the investor-laborers supporting this business today.But too we have Zach Schopp and his team at Seed of Life Labs to guarantee our compliance and quality standards. The effects of this business on our community are in my opinion directly related to the definition of business success.And in the same breathe,I too aim to earn a buck.The free market of applicants in this strictly regulated licensing roll out have produced this applicant at this address.Both have their benefits and nuances,but consider too the many regulations hardly enumerated in the first paragraph of this application,of which I aim to strictly adhere.Consider that I labored for nearly two years without pay to reach this point;consider that this business may be of just the homegrown quality you’re after. This is my only business.This is my only stake in any business.The success of this business is paramount to me. Curtailing youth consumption is paramount.Encouraging safe and healthy use is essential.Education,reinforcement of that education,and legal enforcement are both integral the State tax program and my business plan,and I will personally have the business pursue meaningful strategies in cooperation with the City and community to address directly and mitigate as much as possible their concerns. -For example I would be happy to install security systems and quality fencing that obstructs views on both our property as well as on nearby properties.We would be happy to finance any other mitigation plans upon business success.And we will respond and I will keep an open door for any concerns from any community member whatsoever. I believe,after researching dozens of municipalities and zoning regulations,alongside Hastings in particular and in depth,that this location is in the interest of the City and citizenry of Hastings. *Please note that the address listed on Dakota County GIS in the City of Hastings is 215 Ramsey St.The GIS ID is 193215015062.I just wanted to be crystal clear here.According to both Google and the property owner,the address is actually 217 Ramsey St.Thank you. Joshua R Bruns Minneapolis Kombucha 952-223-7270 MNFruit.carrd.co/ X-C-01 Building Exterior Changes Notes Lighting and Cameras. The general goal is to constantly and continuously record every practical and reasonable square inch of the property.Open ground,covered ground,and anything in between must be addressed as a security concern,hiding place,weak point,threat to community safety,or otherwise contrary this application and security plan in general. Any glare from windows on 215 Ramsey can be addressed with window awnings or film Minneapolis Kombucha will pay strict attention to 155.53.5 in both tastefully and securely illuminating the retail location.Even ground lights can be considered instead of lampposts for a pleasing ambiance. Recessed lights,wall scones,and ambient rooftop lighting will create a glow to help illuminate the entire property.Light shields can be installed and lights angled so they are least intrusive to neighbors and passersby.The doorways will be illuminated directly. With city permission the installation of pragmatically and conspicuously placed lamp posts would increase angles for both illumination cones and security cameras.Otherwise angled supports can help extend viewing angles over the westerly adjacent parking lot or East 3rd St.Adjacent neighbor approval also can extend our general security.Having access to these views would be beneficial. The rules package really requires an army of quality cameras.These are budgeted for and will be installed and backed-up with additional power by a professional installation contractor. General Facade Improvements and Solar Panels. Improvements like window shutters or awnings,paint,or other general building improvements would be pursued if necessary. Solar panels probably wont be considered posthaste. Pursue “education and technical assistance to help producers utilize best practices.”1 Continuously track (analyze,implement new approaches)metrics and key performance indicators3: Yield,bill,rate tariffs.Directly offset 100%of electricity and any natural gas,liquid fuel,bio-fuel or propane consumption through a verified subscription in a community solar garden,renewable energy generated on site,or equivalent...or pay a monthly fee...per kWh...”1 Signs. Exterior signs will not say “Cannabis”.If City leaders and community development leaders would consider the word “Dispensary”it might go a long way for our business.However,many retail sales are initiated online,so the client would know the retail store’s name regardless.But it might save some navigational trouble Additionally this location is not on a busy road,so stopping passersby from 61 or 55 probably isn’t a significant source of clients.Originally (as in 45 days ago)I had decided for a sign (considering I would be on a busy road in a different municipality)that would read:“Unanimous Cannabis:A Dispensary.”This I would expect would pop up on Google maps for the average search for my business.However.I am absolutely considering other names at this junction,non of which would be directly relate to cannabis whatsoever.“Minneapolis Kombucha”certainly has some sentimental value!!Professional,classy,and aesthetically pleasing are really the only main parameters. Seeing as there are often musical gatherings nearby,I most definitely want to remain inconspicuous,a mantra of my life really,but in this case I think it would be best for something covert. Any exterior business identification signage for [Minneapolis Kombucha]will conform to the requirements of state law.The signage will be clearly visible and readable by purchasers.Physical signage will only be placed on the Property itself.Minneapolis Kombucha will maintain the exterior of the building to be in compliance with state and local X-C-01 building,fire,and zoning requirements or regulations.15 A cannabis business or hemp business must post signage as required by the Department of Labor and Industry.Each point of ingress to a retail area must have conspicuous signage with the 86.21 following statement:"No persons under 21 allowed.There will be no drive through space allotted nor vending machines anywhere on the property. Community and Neighbor Safety. To protect the public health,safety,and welfare emergency “personnel will have full access to the [retail location]to provide adequate emergency access (Fire,Police,and Ambulance)and to give the best possible emergency response time.A safe box can be wall-mounted at the front entrance and will hold building keys for fire departments,emergency medical services,and police to retrieve in emergency situations.Otherwise local law enforcement can hold master keys and/or access cards to all restricted areas within the [retail location]so that they can quickly enter the dispensary without having to force entry.Individual keys can also be held in deposit at the station.”14 Generally one facet of security is an overt design paradigm that inherently quells criminal activity while at the same time preserving and enhancing the appearance of the street /walking corridor.This includes managing blight,addressing landscaping concerns,creating both community and the appearance of community via “eyes on the street”,refreshing building paint,creating crisp corners and lines,addressing sidewalk and curb concerns,refreshing landscaping materials like stone and weeds,investing generally with ideas and actions and partnerships with the community so everyone desires general business success via a sense of community,implementing artistic design and art in the surrounding area,encouraging a business hub that includes a community building and/or community projects that too create a sense of community,and a number of other more abstract, flexible,inclusive,and creative exterior changes. Adjunct security systems will be offered to neighboring properties,including fencing,camera, landscape design,alarms,motion detectors,door and window locking upgrades,and new entry protocols. Walkability. Boulders around the building (on the outside or inside of sidewalk)not only create a safer building but a more walkable sidewalk and general area as well.Crosswalks in my pinon should be readily available.Bike lanes too would be a welcomed addition. The intent of City Code 155.30 (A)speaks volumes to this business’placement. To error on the side of walkability would be to place wooden benches,public restrooms,and sheltered gathering places or rest stops. Fences and Screens. Generally fences and screens requested would be of high quality with specific specifications available for order.Yards and open space might be a good think in this case. A new facade or tasteful,aesthetically pleasing fence with thorny vegetation directly covering the southern face of the building would further separate the space.It would help segregate the space if this fence can extend westward into the parking lot about 12 feet,and then restart again just beyond the entrance,taping out as it loops northward.The fence could extend further northward at maximum height as well,with considerations to traffic sight-lines.I too prefer more open sight lines generally. They call it “eyes on the street.”It’s a community’s way of creating a sense of itself as well as for concerns of crime.I suppose even some professional criminals would rather prefer fencing.Their masks apparently overcome our cameras,but not a random driver calling 911. Alongside fencing throughout the area,in particular a wood fence along the southern border of X-C-01 East 3rd Street between Ramsey St.and Tyler St.is proposed.However,the community development team might find that a more visible street is more preferable. Quality awnings or a series of pergolas with sturdy mesh screens on the side can be installed on the balconies across East 3rd St.These screens can be rolled up on warm summer days to escape to the northern side of the building for that extra shade and breeze.There is definitely some room for vegetation as well.I can think of a few native species that would do well on that northern patch of grass. A covering or awning to create a space for the main entrance might obscure camera fields of vision.It would certainly be more work for the business to break this down and store it every business day.I would probably vote against it.This canvass would extend slightly into the parking area on Hastings’property.It would be more of a space for a short line of clients so they are not exposed to the public eye while waiting to enter the store.This will require a disassembly and storage feature that allows the front door to be exposed during closed hours,erasing any hiding spaces.This is largely a suggestion to consider for the community development team and City Council.It might help mitigate public concerns.This exterior canvassed area would require additional OCM inspection,or common business sense upgrades.It may pose security concerns however.Therefore,I am dedicating a large portion of square footage to a security strong box foyer /waiting room.The layout would allow for a series of doors. Parking. Minneapolis Kombucha requests access and use of the parking lot adjacent on the western side of 215 Ramsey St.Minneapolis Kombucha hereby requests permission to physically redesign this parking lot.We request a partnership with the City to paint and redesign the surrounding city space.We request a partnership to include the community in general redesigns of any part of the City..Maybe we can put a few asterisks on the 10-year plan.First,we want to define the area so pedestrians and drivers are sure of where they are able to safely go.Even fencing that is 1 foot tall helps define the sidewalk to both pedestrians and drivers.Large boulders are fantastic traffic control devices,and their size and shape help determine their placement.These and other traffic control devices are desired by Minneapolis Kombucha throughout the southern,western,and northeastern side of the property. Vertically raised parking bumpers and parking bollard posts are also requested by Minneapolis Kombucha.The business will pay for all upgrades to the parking lot adjacent on the western side of the property as this business quickly matures,unless otherwise discussed and agreed to by the City of Hastings.On that note I have been amassing a contact list of partners and laborers and financiers and otherwise eager parties for just this business in particular.We are ready for the next stage. After the floor plan is complete,the actual retail square footage will be closer to 650 square feet than the building’s 2,000 square feet total.Our partners specialize in design.We know how to learn and adapt and create a quality business on the fly.My partners are professionals in our economy.They are wise.And there are many.You’d be amazed at how far my available 35%in business equity did go. Parking can be reserved on the southeastern space of the western parking lot for deliveries. These delivery personnel can then walk along the southern face of the building into a fenced and covered walkway into the rear vestibule.The exterior change would required would be a suitable fence or reinforced wall that runs parallel along the eastern rear of the building.Required communication with management (alongside the many necessary requirements for a delivery license)allows for monitoring of the deliverer and surrounding spaces,and remotely unlocking of the first of 3 doors necessary rear entry.Delivery can also happen via 3rd St.East.A space specifically designed for this particular activity would require just a few small changes on 3rd St.East. Traffic Flow and Street Upgrades. X-C-01 We might even consider implementing subtle traffic control devices that encourage vehicles to turn earlier,say onto 4th St.,or any other,where a new or interesting destination could emerge that would push more people downtown.Many surrounding areas are heavily residential.Maybe a community center or novel park attraction,or trail...or a community garden!!There are I am sure many ways to use 5th,6th,7th,8th,and 10th Streets East to mitigating both East 3rd Street (if ever a problem) and Vermillion traffic generally. Traffic from 10th down Bailey to 3rd shouldn’t be an issues.These roads are not excessively busy and offer less concern. Traffic exiting the parking lot that is adjacent on the western side of 215 Ramsey could happen several ways.It strikes me to have an entrance on the south side adjacent 3rd St.East,with new paint that directs vehicles towards the alleyway.This way there is a better chance for the vehicles to visit the downtown corridor.Instead of taking a right and traveling down 3rd St.East towards Vermillion,drivers have a longer opportunity to realize that 3rd St.East is a one-way in the wrong direction up ahead.The driver will instead travel south towards 4th St.East.New exterior paint on the roads,updated traffic signs (if applicable),fencing on 4-6 different properties,vegetation,a variety of lighting,light shields, conscious light directions,boulders,planters,and subtle bollards. It is expected that clients will use East 3rd street as an ingress.A narrowing of East 3rd street can mitigate eastbound traffic speeds,although this doesn’t seem to be a big problem.Turning right off Vermillion the driver is forced to mitigate their as they advance immediately into the one-way parking area directly adjacent Vermillion St.The two roads are inherently very different,and it forces the driver to mitigate their speeds in the changing landscape.However Vermillion does have high speeds. Because of this one-way road,egress back towards Vermillion Street will often take place on East 4th or 5th Street,nearly halving the expected traffic on East 3rd St.The left turn eastbound off Vermillion onto East 4th Street however is already a busy,difficult turn.Vermillion Street northbound is currently and naturally a very busy and quickly-traveled road,especially after advancing down the hill.Drivers too like to speed across bridges.This combination makes for very fast northbound and southbound travel down Vermillion Street.Minneapolis Kombucha would encourage traffic control devices throughout Vermillion Street to mitigate this generally excessive speed.This would be a larger project that would benefit the entire downtown district commercial community.Slower cars are able to see their surroundings.Slower travel allows for longer decision-making opportunities to visit local businesses. Slower cars are safer.Slower traffic increases the walkability and overall character of the City.Speeds close to 45 mph down Vermillion is rather brutal.Obviously large street construction operations don’t currently fit in my budget,but smaller ones do,especially in just a few months time,largely including vegetative plantings,simple lane dividers,or even stop signs and repainting.And it’s springtime!!great for planting!!East 3rd Street and many areas could definitely use some touch ups,depending on your perspective.I know a “city as a work of art”professor who would just go mad at this opportunity (my team won the redesign competition that was presented to City leaders,so maybe I can bring an extra set of eyes at least).Effectively defining this space creates an atmosphere and facade that is safer,which is directly discussed in Minneapolis Kombucha’s submitted Security Plan.Minneapolis Kombucha is willing to invest in all portions of the community,including traffic a mile away that can be slowed if addressed creatively and tactfully.Together,the City of Hastings,and my partners and I,would,I believe,find success together.I am more than eager to work with City and community leaders to address the many concerns we will unearth as we create and open community projects to beautify, revamp,and plant the city. If I had it my way American plums would litter the 5-6 hour sunlight areas.American crossed plums and apricots would find homes in sunny spots throughout the city.What if you had financial freedom?What would you do?I would buy a van and go live in the national parks until I read enough books to safely sail.I lived part of the dream and planted a small orchard over the last two years. X-C-01 However there is never enough gardening to do.Hastings is part of the bird migration path.They need more green.That’s what I would do with a successful cannabis dispensary.I would reinvigorate old trees and plant their seeds.How does this affect traffic?Well over the years as we grow we create such a vibrant city that we need to plant more trees in newer areas of town. Don’t get me wrong.We are here to make some money.I’m too old to work for someone else.I hope you recognize my vigor in this respect,the dedication I have.The safety and security goals Minneapolis Kombucha aims to attain should be considered cutting edge and tailored.My abidance and internalize of the law to reach this point is further proof of the creative and tangible ends this business will go in order to operate a successful business.I have read now closer to 50 municipal retail registration ordinances.They all begin with community safety and security,their protection and well being.Every singe employee and customer is obviously the most valuable asset in my approach to market business.I am a philosopher and am acquainted with many of our great thinkers,and “if I have learned anything,it is that I know nothing.”But I certainly tend to agree with some over others,and when the new CEO of my last job came in and squeezed every last penny until I too was out,well I came to agree with some of those philosophers more and more.Adam Smith’s vision was altruistic. Nuances abound as we page through historical perspectives and apply them to 2025’s U.S.economy. “When I’m boss”my dad always said,too a small business owner.Well here’s my opportunity to prove what better business really is.You will be surprised at our outreach and real and genuine goals.This business has been dedicated to that philosophy from the very beginning.It is crowd sourced and inclusive.And fresh fruit is so very intimate.The handler must take care.If this market lives up to the hype and we can be a business that is dynamic,prepared,legally compliant,and supply properly a consumer good that is good for the human,well then let it be me.We have the ethics and the right set of goals.Well I do at least,and I’m the one legally burdened with “controlling ownership”and “control of governance and finance.”7,8 Neighboring Properties;Economic Influence. Business,economic growth,and expansion often increase the value of properties.Especially when the business owner,that diligent,early (of the first 193),partnered,and soon to be successful licensee business applicant is so thrilled to support his city.Detailed throughout this security plan are planned,flexible,and inclusive upgrades as this business grows. Please keep in mind as you peruse these documents that the business owner and license hold, Josh Bruns,is so flexible that he is keenly interested in being open for just a handful of hours on select days.Some might argue that this is business as usual,and we might want the business to be open throughout the designated (read:required)business hours.Josh is a proprietor.He is an entrepreneur. He is a fruit farmer who took a few philosophy legal classes and has an ego big enough to stubbornly and correctly forecast the roll out of the law.This is exactly why we all despise insider-trading lawmakers who know the business contracts ahead of time.I just happened to know the law.I applied it and am being awarded this license in the first wave because I both earned it and won it via rigid regulation and potential applicant pool of thousands and thousands,probably far more.I was willing to undergo the riggers of this business.I was a small business owner.I am hungry.I am adaptable.And this extends far beyond the interior of my shop.On that note,zoning was not an easy challenge,nor should it be.We learned along the way and were willing to adapt.Not every property is available for a reasonable amount of capital.I hope that is not what the City and citizenry want out of a local business, someone looking to squeeze every last penny out of it because they are more business-minded and invested substantial amounts of capital into the application process.Not ironically this type of applicant you are dearly reading today is a natural outcome of the very intent of the law as it was written.One zoning official,John Hinzman’s counterpart in Polk County,MN,and I quote,after asking if registration was on a first-applicant basis,“I see no other way to do it.”He also questioned the X-C-01 limitations on registrations.I suppose though many other registrations of business types are accepted law around the country.This is first mover attribute is why you want me:I’m the best at regulation as written by both the legislator and regulatory authority.I’m the winner from the very loosely regulated free market of potential applicants in the first place.My history and occupation that qualified me gives me the character outlined in this application.I’m a local,well traveled,law-interested guy born in Burnsville.Kristina Koznick was one of my idols.Who would you rather be your neighbor?Someone who can buy-out a successful business at a corner location?Some of my partners think this location isn’t good enough,not being on the main road.Well I’m the majority stakeholder and think a location downtown is the best for the business in the City.It preserves and expands.There are flaws. Characteristics.We can overcome our concerns.And this real estate is owned so far by cooperating owners and a tenant that might be best satisfied releasing his lease.To summarize this is a unique approach and viewpoint on this business that I hope thrills the reader.I’m just a law abiding entrepreneur who understands,appreciates,and empathizes with arguments from all ends of the philosophical spectrum.And I’m a fruit farmer and nursery owner!My income standards are low,my sense of community are I hope considerate.I am ambivalent towards cannabis use and understand that arguments from both sides have considerable merit.Everyone in the community will be represented by Josh in his approach to safe cannabis applications.I will both follow the law and be considerate towards the concerns of all philosophies.I hope to directly address and overcome concerns of adverse affects on the public interest. Josh is a creative entrepreneur who looks to partner with basically anyone allowed under Minnesota Statute.There are many of us that have joined me over the last 19 months on this business journey.Imagine if a few of my new neighbors and I partner up.The sky is the limit.I have contacted nearly 10,000 people individually,not including partners who posted advertisements.I’ve vetting all of them in their own rigorous review of me and my business documents.I first typed and printed and hit the pavement on February 4th,2023 and hand delivered 5,000 paper fliers to my neighboring city residents over the next several months.Some are with me today.They are business-minded Minnesotans.I try to include everyone.Just ask.This business is a part of me,and we are in the growth stage.Join us.This business,if successful,might open other business opportunities I have not yet considered.These are the local partners that Hastings should consider. How can we make the city a brighter place?How can we help make it a place where people can find livelihood and liberty?I think we might be surprised at how even small,thoughtful changes in any number of locations can create a sense of pride that helps mitigate crime and instead fosters community and opportunity.This might not happen overnight,and the changes are small,but this is after all a small business that is currently turning medium-small.We also have thoughtful,applicable,standardized, redundant,and effective security measures. I look forward to directly addressing and mitigating concerns from any in the adjacent and general community.I hope to perpetually increase our general compatibility with the community in a many number of creative ways.But I am a man of just one.All of your help is both encouraged and desired.Let’s find constructive ways to create good change.This is a special opportunity to directly change or upgrade a part of the community that you hold special and dear.All inquires are welcome at Sincere regards, Joshua R Bruns Minneapolis Kombucha 952-223-7270 MinneapolisCooperative@gmail.com X-C-01 1.HB 3400.Task Force on Cannabis Environmental Best Practices.Legislative Report and Recommendations. 7.MN Statute 342.17.MN Revisor 8.MN OCM Faq Page. 14.Numed.Dispensary Security Plan.Numed. 15.MN Statute Chapter 342.Retail Requirements.Subd.8. X-C-01 Floor Plan Showing Location of Uses Notes (See the Attached Floor Plan Sketch) General Standards. The entire building will be exclusively used for retail sales.This includes a foyer,three vestibules,a security check-in booth,a sales floor,a workroom,a vault,storage,and two bathrooms. The floor plan is designed to overtly lead and have determinations over the clients ingress through the retail location. Exact square footage of design is dependent a security contractor,engineer,or architectural approval alongside OCM inspection and final approval. Doors will lock from the outside,but from the inside egress will be easily accessible per fire and emergency safety.The redundancy of doors allow security/staff to manipulate customer flow. The vault room and a variety of other walls will be reinforced with heavy gauge steel and mesh barriers,bullet proof glass and doors,and a variety of other security measures as detailed in this application. Install strong-box /caged /commercially reinforced vestibule for rear door deliveries,allowing rear door to be opened from outside the vestibule.The delivery can then enter,lock the door behind him,and then enter through the following vestibule door. A retailer must establish an area for conducting retail sales that is open to individuals who are 21 years or older.This includes a segregated entrance where age confirmation can take place.This entrance is a strong box with remotely controlled door locks.After age confirmation in the foyer,the client would enter into the waiting room main retail area.After that door closes,the main front door is allowed to open so the next client can enter into the building.An employee /security personell would be exposed to camera moniters for the outside of the building in this space.This employee would have control over door access,able to unlock the automatically locking doors. A retail area must include a point-of-sale system that is validated and integrated with the statewide monitoring system. Generally speaking Minneapolis Kombucha will constantly further advance business practices and analyze things like foot traffic to understand customer movement and behavior.We also want to respect privacy and create a quality retail experience. Joshua R Bruns Minneapolis Kombucha 952-223-7270 MinneapolisCooperative@gmail.com X-C-01 X- C - 0 1 vU ——<n 2 X-C-01 Security Plan Minneapolis Kombucha Special Use Permit City of Hasting,MN 04/07/2025 X-C-01 Order of Contents Part 1.Housekeeping. Abstract. Cultivation. Products sold. Samples. 500’Buffers. Labeling. Landscaping. Solid Waste Disposal. Part 2.General Retail Standard Security Operating Procedures. General Retail. Preorders. Record Keeping Information Security. GAAP Standards Compliance. Inventory Reconciliation and Auditing. Permit Non-compliance Annual Review Diversion Protection. Inventory Control. Recall. Handling,Disposing. Storage. Product,Currency Storage;Vault Alarms. Cash Protocols inside the Dispensary Cashier Accountability Non-Cash Transactions Security Protocols. Transportation and Cash Protocols for Depositing Receiving Procedures. Background Checks. Security Policies Armed Robbery Response. Armed Security Guard. Security Monitoring. Security Equipment. Lighting. Locks. Cybersecurity. Part 3.Conclusion. Owner-operator as Flexible,Creative,and Compliant. X-C-01 Security Plan Abstract. The grounds under which this special use permit is sought are City Code 155.07 (J)“Cannabis Uses and Lower Potency Hemp Edible Uses”,155.30,155.30 (C)subd.10,City Code Chapter 95 “Health and Safety,Nuisances”,City Code Chapter 117 “Cannabis and Lower Potency Hemp Edible Business Registration”,City Code Chapter 110 ad 114 where and if applicable,The City of Hastings’ Charter and Code generally,MN Statute 342,the official rules package,the MN Office of Cannabis Management (OCM),and MN Law. The address listed on Dakota County GIS is 215 Ramsey St.Hastings,MN 55033.Otherwise the Parcel ID is 193215015062;11 acres;lot 6 block 15.General consensus however identifies the real estate as 217 Ramsey St. This security plan is submitted alongside a land use application for a cannabis retail business to register with the City and commence operations at 215 Ramsey Street,Hastings,MN,55033 upon approval from City Council per City Code. Part 1.Housekeeping. Cultivation. No cultivation whatsoever will occur on the proposed location for this cannabis retail special land use application/permit. Products sold. Only state approved,licensed producers and manufacturers will be allowed to distribute to Minneapolis Kombucha or its later DBA as registered with the MN SOS.Only these approved product categories will be for sale at the proposed retail location.Any and all products sold at this retail establishment by Minneapolis Kombucha will require proof of testing and proof of the passing of that testing in order for Minneapolis Kombucha to purchase or sell that product.The SOPs,testing methods,and the quality of those methods must be licensed and approved by OCM.Minneapolis Kombucha will immediately notify OCM if any visual signs or customer complaints suggest a product does not meet quality standards.No Lower potency hemp edibles will be sold at this retail location whatsoever. Samples. No samples of any cannabis products will be available whatsoever.Strict enforcement will be administered to any cannabis or product that could be mistaken as cannabis,per company policy.The business will not accept,use,nor distribute any products samples from any vendors,other businesses, or this business,whatsoever.No products designed to showcase the flavor or texture of an indigestible cannabis product but that does not contain THC will be allowed between any of the aforementioned entities,including employees,management,and customers,for any reasons whatsoever,per company policy.Furthermore no onsite consumption of any kind whatsoever will be tolerated.It is of the opinion of this business that any onsite consumption negates the privilege of an employee or customer to enjoy the services and employment offered by Minneapolis Kombucha. 500’Buffers. 500’Buffers between the nearest OCM registered,LPHE canniboid retail location(s)are being addressed this week.The owners and I are currently in negotiations for a sublease /purchase. X-C-01 Labeling. Minneapolis Kombucha won’t be labeling any products in the City of Hastings.Product information will be available via the labeling requirements of the manufacture,and upon request and display.However Minneapolis Kombucha will maintain that all products sold are labeled,that wholesalers and suppliers are reputable and follow quality control measures. Landscaping. “Minneapolis Kombucha will plant aggressive,shade tolerant foliage,like gooseberries or other more aggressive native thorn bushes. Another concern relating to the exterior of the building (really the community in general)is to address and include the general community,especially the communities most near the retail location.Maybe it might be beneficial to provide some outreach maybe from the Community Development Team that includes Let it be stated here that management (Joshua R Bruns)has internalized a culture of legal compliance. He internalizes these writings as he compiles them;he has internalized MN cannabis law.He has no excuse for not being able to meet its minimum standards,the minimum not being the goal for this business.It is a requirement that Josh understands not only what the law is,but how to comply with it. The buck stops here.Another argument in this same light is that Josh is the applicant to be of a very coveted few “license holders”.It is their duty to operate a legal,safe,and respectable cannabis business,or appoint someone who can,or cease all business activities until compliance can be sustainable and dependably met. Solid Waste Disposal. “The operation must conduct an assessment to document risks associated with waste management including waste reduction,pollution control,recycling and reuse...document and follow a waste management plant that addresses risks and contains policies and procedures to control pollution and safely handle,reduce,store,and dispose of waste and recyclable...inventory of all hazardous materials uses in the operation...dispose of chemical,dangerous or hazardous waste in compliance with federal,state,and local laws and regulations...recycle/compost organic waste from plant material,soil,biodegradable consumable products,etc.,when practical;recycle office paper, plastic,cardboard,containers,etc...integrate sustainable packaging to the maximum extent practical... packaging reuse (when applicable),use of recycled source materials,packaging designed for composting or recycling,and labels integrated into packaging or printed using environmentally safe materials...packaging specifications must define sustainability parameters...retain supplier sustainability certifications for review...cannabis waste must be rendered unusable and unrecognizable prior to leaving the facility...grinding and incorporating the cannabis waste with non-consumable, solid wastes...food waste...cardboard...paper..compost activators..soil or soil mix...other waste processing methods are acceptable if justified and documented...cannabis waste...must be recorded in the inventory system...all ...waste collection containers...must be well maintained...locked... removed daily...equipped with easily closable lids.”2 Minneapolis Kombucha or it’s subsequent DBA will resubmit plans if any packaging waste is to be reused.Ensuring clients clean packaging (if it had the ability to be reused in the first place)is not pragmatic at this juncture. Part 2.General Retail Standard Security Operating Procedures. General Retail. X-C-01 General speaking the business philosophy is to create a more efficient business by things like automated controls (and properly sized equipment)to help minimize energy usage.3 “Make sure that any new or used HVAC equipment integrates with the existing duct system.”3 Re-insulate doors, windows,walls,floors...show evidence of efforts to increase the share of renewable energy...show evidence of a minimization of energy intensity per unity....or increasing the output...8 All areas of the building will be kept clean and sanitary. A ventilation and filtration plan for odor control is as follows.Aside 2 air purifiers,4 six inch exhaust fans will pull the stores atmosphere into 4 six inch carbon filters designed for odor elimination.Fresh air will naturally be introduced via negative pressure from the fans.Any detectable odor will be mitigated by a redesign of the layout of filters,or the introduction of an additional fan and filter. Regulated product will be entered into the statewide monitoring system upon receipt,stored in the secure storage location,recorded,restocked into the retail inventory,recorded (both digitally and manually),and made available for POS software tracking. “The main entrance of the building will be clear of any obstructions or barriers...” General plans for code compliance include inspections,assessments,licenses,permits, upgrades,professional designs,and a general goal of not just complying but exceeding definitions of a working environment.This is done by way of hiring professionals and experts in each of these fields, hopefully perpetuated by the inclusive nature of this proposal,detailed in the attached cooperative agreement.Other plans for code compliance include the many potential investor-laborer-owners.We will surely turn up experts here,and if not,the ability to locate experts for code compliance has already occurred.I have already vetted many ancillary companies.The MN Dept.of Labor and Industry released in 2022 a Guide to the State Building Code that includes the building code,energy code,accessibility code,mechanical and fuel gas code,plumbing code,piping code,electrical code, and flood-proofing regulations,as applicable.6 Maintaining cohesion with the details enumerated in these codes serves as a foundation to build on. Preorders. “A cannabis business with a retail endorsement (Minneapolis Kombucha)may accept orders and payment for regulated products on the Internet,using a mobile app,or by telephone.A cannabis retailer that uses online and telephone sales must:(1)require all submitted orders to include the customer's name,address,phone number,email address,and date of birth;and (2)before providing the ordered product to the customer in a store,verify:(a)the customer's name on the form of identification provided under Minnesota Statutes,section 342.27 subd.4,(b);and (b)that the customer is 21 years of age or older using a form of identification required by Minnesota Statutes,section 342.27 subd.4 (b). A retailer may accept payment from a customer using any legal method of payment,gift card prepayments,or prepayment accounts established with the retailer,except that a customer must not make a payment for a regulated product with an electronic benefits transfer services card.A retailer must collect only the information necessary to complete a transaction.A retailer must only use collected information for the purpose of completing the transaction.A retailer must establish a standard operating procedure for data security and privacy that applies to the cannabis retailer and any third party with whom the cannabis retailer contracts for the purpose of offering online sales.” Record Keeping. Detailed,strict,accurate,comprehensive,and compliant financial records will be maintained for the current fiscal year and the 3 previous fiscal years.These will be made available to the Chief of Police and OCM upon request.Included in the records must be cash logs,sale records,purchases of inventory,invoices,receipts,deposit slips,canceled checks,employee compensation records,security X-C-01 records,and vendor and business-to-business contact information.Additional records that must be made available to the Chief of Police upon request are worker and volunteer training records,a security plan,security testing and maintenance records,SOPs,sanitation procedures and records, equipment maintenance procedures and records,and storage procedures and records.These records must be kept in a uniform manner so they can be made available within 24 hours of OCM or the Chief of Police’s request.Minneapolis Kombucha will “comply with all administrative holds and any other restrictions on the sale or transfer of regulated products issued through the statewide monitoring system”,including log in histories and applicable activities,controlling access to prevent unauthorized use or reporting,terminate unused accounts.The statewide monitoring system must and will be used to conduct inventory and tracking functions...“to maintain an accurate inventory of all regulated products...in the business’s possession...Inventory [includes]...product category...quantity...by weight or units...the batch number...”No living plants will be maintained at this retail location.All transactions,sales,and receipts will be tracked and entered into the statewide monitoring system,as applicable.Any theft or loss must be logged,the latter immediately reported to the police and OCM. SOPs,layouts,lighting,etc.must then be addressed,adjusted,and enhanced accordingly.Justification for weight adjustments won’t be applicable as fresh,loose flower won’t be an item for sale at our retail location.Daily reconciliations are required,with inventory available for inspection upon request from OCM.Minneapolis Kombucha has developed and details below “a written procedure and schedule for verifying the accuracy of the business's system inventory.”.Minneapolis Kombucha will “update and maintain records regarding the business's compliance with the procedure for verifying [inventory] accuracy”.Inventory constantly maintained and as applicable updated directly at POS software including receiving and tracking,rotating stock,stock levels,PAR levels,overstock and under stock, stock outs,look back periods,turnover rates,reorder points.Regular and automated audits and cycle counts,demand planning and forecasting,in-store tracking,handler IDs,handler segregation,all recorded by quality,compliant video or other recording devices.“If the statewide monitoring system suffers an outage or failure or is otherwise unavailable [Minneapolis Kombucha]may record and report all cannabis activity to the office in writing for three calendar days;after the statewide monitoring system has been unavailable for three calendar days,must cease to record and report all cannabis activity in writing to the office except as provided in [the following]item,[to]continue reporting to the office in writing regarding cultivating cannabis plants during the entire time that the statewide monitoring system is unavailable;and must promptly enter the information from all written reporting under this subpart in the statewide monitoring system when the system becomes available, no later than 12 hours following the time that the statewide monitoring system becomes available.;and must not make any sales while the statewide monitoring system is suffering an outage or failure or is otherwise unavailable.”14 Information Security. Meticulous record keeping surrounds each batch,compliance of business standards in each and every branch of business operations,maintained,updated,assessed,tested,approved,permitted, complied,etc.,maintained for 2-5 years,depending.All product should be traceable by batch number. Both physical (organized clipboard,folder,and both physical and computer stored filing systems)and electronic (application based)record keeping are mandatory. “Must maintain appropriate internal financial and operation controls to measure operational effectiveness and efficiency,provide reliable financial reporting,uncover fraud and protect organizational assets (tangible and intellectual property)...must assess operation controls to ensure effectiveness and comprehensiveness...as part of third-party audits...must have procedures to control documents related to production,product quality,worker safety and work operations that include approval of documents prior to issues,review and revision as required including re-approval... X-C-01 documented changed and current revision status...ensuring documents remain legible and readily identifiable...ensuring correct versions of relevant documents are available at points of use... preventing obsolete documents from unintended use...controlled documents may include policies, procedures,forms,product formulas and specifications,audits,assessments,and proprietary information.”2 “Internal controls (rules,processes,and SOPs)minimize risk by reducing the mishandling or theft of product or cash as well as support any audit...”2 “...Unauthorized sale of products or the diversion of products through leaks in the supply chain or various cracks in the internal controls can also be revealed by conducting audits of inventory and POS systems during normal business hours.18” Inventory balance sheet will list various categories:received goods,inventory in backstock... and/or retail ready goods.Direct and indirect costs compared to yield offers total cost per unit;total revenue minus cost of goods sold renders the gross margin. Minneapolis Kombucha “will value records as a means to improve operations,manage finances,assist with internal and external audits,and provide [OCM],local officials,or local law enforcement with information.[Minneapolis Kombucha]will maintain accurate books and records in an electronic format,detailing all of the revenues and expenses of the business,and all of its assets and liabilities.[Minneapolis Kombucha plans to store records within the I.T.Closet.Records will be secured and backed up daily to prevent tampering,theft,or destruction of records.Records will have safeguards against unauthorized erasures and changes in data after the information has been entered and verified by [Minneapolis Kombucha]...All physical documents,such as transaction records, inventory records,security records,audit records,business records,and financial records will be stored electronically in redundant and geographically dispersed tier-rated data centers to provide the maximum level of security and compliance with all state and federal document storage and confidentiality rules.For the storage and retrieval of information,[Minneapolis Kombucha]will use a system that...Guarantees the confidentiality of the information contained therein...Is capable of providing safeguards against erasures and unauthorized changes in data after the information has been entered and verified by the [retail location]...Is capable of being reconstructed in the event of a computer malfunction or accident resulting in the destruction of the data bank.All physical documents,such as transaction records,inventory records,security records,audit records,business records,[and]financial records...will be encrypted electronically to provide [an acceptable]level of security and compliance with all state and federal document storage and confidentiality rules...[T]he agent-in-charge will be responsible for maintaining all files subject to audit or inspection by [OCM]. ..organization records will be maintained electronically...and be available for inspection by the [OCM] upon request.Maintained records include,but are not limited to,the following...Operating Procedures...Inventory Records,Policies,and Procedures...Security Records...Audit Records...Staff Training Plans and Completion Documentation...Staffing Plan...Business Records (such as assets and liabilities,monetary transactions,bank statements,journals,ledgers,agreements,checks,invoices, receipts,and vouchers,etc.)[Minneapolis Kombucha]...will also maintain accurate sale records for every sale made to a customer.These records will contain,at minimum,the following information...A complete and accurate record of cannabis held,purchased,sold,or otherwise disposed of,and will preserve and keep all invoices,bills of lading,sales records,and copies of bills of sale, returns,and other pertinent papers and documents relating to the purchase,sale,or disposition of cannabis.Records will be maintained in the State of Illinois and all original invoices or copies thereof covering purchases of cannabis will be retained on the licensed premises for a period of 90 days after such purchase...Books,records,papers,and documents will,at all times during the usual business hours of the day,be subject to inspection by the Department or its duly authorized agents and agents.The books,records,papers,and documents for any period with respect to which the X-C-01 Department is authorized to issue a notice of tax liability will be preserved until the expiration of that period.”14 GAAP Standards Compliance. “Maintaining inventory for Accounting:Manual,digital,and application tracking from seed to sale of cannabis flower and subsequent products:“the operation must maintain accurate production records for each batch (or lot)of product it produces...production records include pre-production inspections,process monitoring records,control point records,deviation logs and corrective action reports...product identity,batch...number,package volume and production date...[documenting] traceability...[recording]unexpected findings...for [immediate]corrective action...[verifying]each batch meets product specifications...inspection[s]...test[s]...[and]procedure[s].A certificate of analysis (COA)should accompany each batch.”2 “Yield analysis and reconciliation...product quality and production [is maintained by calculation]and [documentations of]actual yields at the conclusion of appropriate control points in the manufacturing process...Yields must be calculated by one persona and independently verified by a second person... The operation must have procedures in place to investigate and document yields outside of established minimum or maximum yield parameters as defined in production procedures and product specifications..records of deviations,corrective actions and product disposition must be on file for review...procedures [must be established]to reject all products that do not meet established product specifications...[with]documented training...tracked,retested”,and recorded.11 An “ongoing inventory of cannabis and cannabis-derived products...as required by applicable government regulations.”2 “Ensuring GAAP principles and tax compliance:My SOPs entail employing a CPA with GAAP filing tax credentials and to “maintain an auditable accounting system”.1 Management should be trained on tax and accounting issues unique to the cannabis business such as IRS 280E...The operation should used qualified,certified third-party financial service providers...[the]operation can provide [an]affidavit or other written proof from [the]accounting firm/accountant certifying use of General Accepted Accounting Practices.”2 I intend to employ a certified professional accountant to audit the business continuously and regularly audit the business.Timely filing of taxes is required,and being versed in small business filing will ensure understanding and translation to employees. For the last year and half I have prospected investor-laborers.I hand-delivered 5,000 leaflets in February-April of 2024,advertising my idea of an inclusive cannabis business.I garnered a bit of interest with 27 parties via these leaflets,who reached out for more information.More than several showed exuberant commitment to fulfilling a variety of roles required by the venture.One party in particular wanted to manage the legal and tax side,another is/was a CPA himself.These individuals show continued interest in investing,providing their expert labor,and already labored their expertise by council via simple business discussions and brainstorming. Minneapolis Kombucha will Consistently use,update,and enforce use of GAAP-compliant accounting tax software to track inventory,revenue,payroll,etc. I attest that I will resubmit standard operating procedures upon adoption of final regulations and at point of identifying physical premises as a condition of converting a license. Entering data into the statewide monitoring system must comply with chapter 7601.Written procedures must be followed for weighing and measuring to accurately enter data. Inventory Reconciliation and Auditing. Minneapolis Kombucha “recognizes that the simplest and most effective way to detect internal theft is to maintain an accurate inventory.In order to maintain an accurate inventory,[Minneapolis X-C-01 Kombucha]will use a reputable inventory control system to track all cannabis in the dispensary’s possession.This system will prevent any cannabis from being unaccounted for or misidentified.Since inventory management serves to deter theft and diversion of cannabis,a strong auditing program will enable ongoing inventory controls and procedures for the conduct of inventory reviews and comprehensive inventories of cannabis.All inventories,procedures,and other documents related to inventory control will be maintained on the premises and made available immediately upon request for inspection and copying by [OCM]or law enforcement....the agent-in-charge shall have primary oversight of the cannabis inventory verification system and the point-of-sale system.The inventory point-of-sale system shall be real-time,web-based,and accessible by [OCM]at any time.The point- of-sale system shall track,at a minimum the date of sale,amount,price,and currency.[Minneapolis Kombucha]will utilize an inventory control system approved by [OCM]to track and report on all aspects of operations including,but not limited to cannabis tracking,inventory data,gross sales (by weight and by sale)and other information.These systems will ...Ensure compliance with state law ...Produce historical transnational data for review ...Accurately document the location,amounts,and descriptions of all cannabis...[Minneapolis Kombucha]will establish an account with the State's verification system that documents ...Each sales transaction at the time of sale and each day's beginning inventory,acquisitions,sales,disposal,and ending inventory...Acquisition of cannabis and cannabis-infused products from a licensed adult use cultivation center,craft grower,infuser,or transporter,including:a description of the products (including the quantity,strain,variety,and batch number of each product received);The name and registry identification number of the licensed adult use cultivation center,craft grower,or infuser providing the cannabis and cannabis-infused products; The name and registry identification number of the licensed adult use cultivation center,craft grower, infuser,or transportation agent delivering the cannabis;The name and registry identification number of the dispensing organization agent receiving the cannabis;and the date of acquisition...The disposal of cannabis,including:A description of the products,including the quantity,strain,variety,batch number,and reason for the cannabis being disposed;The method of disposal;and the date and time of disposal.Before commencing business,[Minneapolis Kombucha]will conduct a comprehensive inventory of all forms of cannabis.[Minneapolis Kombucha]will establish inventory controls and procedures for the conduct of inventory reviews and comprehensive inventories of stored,usable and unusable cannabis,which will enable [Minneapolis Kombucha]to detect any diversion,theft,or loss in a timely manner.All inventories will be maintained in electronic format and will include the date of the inventory,a summary of the inventory findings,and the names,electronic signatures,and titles of the individuals who conducted the inventory.The [employee]performing the inventory will directly input their findings into a device that interfaces with the inventory control system.[Minneapolis Kombucha]...will perform an inventory reconciliation daily.In conducting the inventory reconciliation,[Minneapolis Kombucha]will verify that its inventory is consistent with all inventory records.[Minneapolis Kombucha]...will maintain the results of the inventory reconciliation in its records and [Minneapolis Kombucha]will make the results available to [OCM]...upon request.If a significant discrepancy is discovered between physical inventory and inventory records [Minneapolis Kombucha]will notify [OCM]...within 24 hours of first discovery.Any changes made to the POS/inventory system (e.g.,product conversion vouchers,quantity adjustments,shake,by-product vouchers,physical inventory adjustments,item-edits,etc.)will be reviewed and approved by dispensary management...Any problems or concerns with the reconciliation will be brought to the attention of the [manager],who will immediately take all appropriate steps including,but not limited to,contacting the appropriate authorities if there is suspected criminal activity.”14 Permit Non-compliance “While permits will be renewed yearly [after approved filing of course],there are some instances X-C-01 where non-compliance issues will be addressed between renewal periods.[Minneapolis Kombucha] will not make any physical changes to the reatail floor plan without first receiving written approval from the [OCM],after submitting a request that includes [any applicable]application fee and an updated,regulation-compliant floor plan depicting the proposed changes.Additionally,the premise will not be sublet to another business entity.An amendment to the [special]use permit of [Minneapolis Kombucha](herein referred to as “permit”)will be obtained before proceeding with approved changes to the premises.[Minneapolis Kombucha]will notify [OCM]within 10 days if there is any change made to the security plan,which is considered a change to part of the original application.The notification will be signed by”14 Joshua R Bruns. Annual Review All security policies and procedures will be reviewed annually to ensure that they are following regulations and requirements for all applicable local and state agencies and adequately reflect the business policies of [Minneapolis Kombucha]...Any recommended security policy revisions or updates will be presented to senior management for approval.Updated security policies will be filed in the Policy and Procedures Manual.On an annual basis,[Minneapolis Kombucha]will undergo a security risk assessment review by a licensed private detective [or an otherwise acceptable entity under MN law]...A security recap will be submitted to senior management no later than 30 calendar days after the review has been conducted.If the private detective identifies concerns related to security procedures,the risk assessment will offer a plan to mitigate those concerns.Leadership will review the dispensing organization policies and procedures at least once every 12 months from the issue date of the license and update as needed due to changes in industry standards or as requested by the [OCM].11 Diversion Protection. Minneapolis Kombucha will adopt,maintain,continuously use,require employees to use standardized audit process.16 Audit every item at least once/week.Each day audits for particular products/areas in production.Maintain records of compliance. “Theft/product loss plan must [be implemented]for securing all product and currency following any instance of diversion,theft or loss of cannabis...a security risk assessment to determine... additional safeguards...and implement changes...The operation must provide documented cash management training to workers who candle cash including managing cash transaction with customers and suppliers. Maintaining a records management system by following established procedures to ensure “organized storage,retention and protection of all records and supporting data that includes...[a] records inventory list,destruction process,HIPAA compliance...[managing]all digital files...[with] systems access controls,user controls and tracking...standard file labeling and organized storage hierarchy...data encryption...file deletion schedules and processes...data backup...automatic file backup...long-term...integrity...[managing]physical files according to procedures including... restricted storage areas...lockable filing systems...sing-in/sing out procedures...organized filing systems...physical records...filing timely...[with]destruction schedules and processes...crisis protection.,etc.”2 A detailed records inventory list...[identifying]each record by title...persons...revision[s]... retention[s]...destruction[s]”...,etc.“Records inventory list must identify all records related to the following categories...accounting...tax...payroll...contracts...corporate...insurance,intellectual property...legal fees...public filing..security records...logins..electronic mail...employment... training...safety..audit...quality...vendor..customer..patient...inventory...production...product... test[s and]transfer[s]...method[s thereof]...sales...press...maintenance logs...calibration... sanitation...”2 X-C-01 Inventory Control. Integrate POS system with Inventory audit software/state monitoring system.Use Metrc,an inventory tracking system to allow for per-populated inventory updates with new packages. Track,anticipate sales to keep inventory quantity manageable;maintain sell-through rates and inventory turnover ratios17;study and react to data;manage discrepancies. The operation must have procedures to control documents related to production,product quality,worker safety,and work operations that include...approval of documents prior to issue... review...as required...changes and...revision status...remain legible...current and correct versions remain available...preventing obsolete documents from unintended use...Controlled documents may include policies,procedures,forms,product formulas and specifications,audits,assessments,and proprietary information.The operation must maintain a Records Management System and follow established procedures to ensure the organized storage,retention and protection of all records and supporting data that includes:records inventory list...destruction process...HIPPA compliance...The operation must manage all digital files according to procedures including:System access controls... user controls and tracking...standard file labeling and organized storage hierarchy...data encryption... file deletion schedules and processes including deletion of data on obsolete computers and data storage devices...Data backup...automatic file backup...long-term protection and file integrity...The operation must manage all physical files according to procedures including:Restricted storage areas... lockable filing systems...sign in/sign out procedures...organized filing systems...physical records are filed in a timely manner...destruction schedules and processes...crisis protection...long-term storage/environmental controls...The operation must assign a worker to manage the records system...[with]self-assessment of the records process at least every 90 days..comply[ing]with applicable federal,state,and local regulations...The operation must list all records used or received by the business on a records inventory list...[which]should identify:each record by title...persons authorized to view...revision or deletion authorizations...retention period...destruction method... storage and back-up requirements...record location...[which categorizations regarding]accounting reports...tax returns...payroll and wages...contracts and agreements...corporate organization... insurance...intellectual property...legal files...public filings...security records...logins...electronic mail...employment and worker files...training records and program documentation...safety and health...audit reports,inspection reports and self-assessments...quality control procedures...vendor records...customer information...patient...records...production records..product test data and test lab reports...product transfers test method documentation..sample management and control records... sales and marketing plans...sales transactions...press releases...maintenance logs for facilities and equipment...calibration,maintenance and repair logs...sanitation logs.2 “All areas where cannabis... products are processed or stored must be controlled and access restricted to authorized personnel... inventory records must be maintained for work-in-progress and finished goods...a commercial vault should be installed...[and proper]sign[s][should be installed].”2 Recall. Inventory product must be recalled if if evidence exists that shows the product is contaminated with foreign material,biological,solvents,or other materials,is otherwise unfit for use,does not comply with records or MN law,has failing packaging,is labeled incorrectly,or otherwise poses a risk to public safety.Traceback and trace-forward investigations must be readily available for 24 hour notice.Records for notification must be maintained.This business must recall a products if information becomes available that the products is mislabeled,defective,or unsafe for consumption.11 Handling,Disposing. X-C-01 All the product accepted by Minneapolis Kombucha will be prepackaged.Minneapolis Kombucha will neither accept nor sell loose flower or other products not in secure,labeled, undamaged,or un-tampered packaging.. Maintain manual and digital records of documenting compliance with handling procedures, available for inspection upon request by OCM. Identification documents from vendors and other businesses must be retained,dated,and filed in case of fraudulent identification,making these records available to OCM upon request. “water standard requirements for disposal systems under chapter 7049,as 30.7 administered by the Pollution Control Agency,solid waste requirements under chapter 7035,as administered by the Pollution Control Agency,hazardous waste requirements under chapter 7045,as administered by the Pollution Control Agency,energy standard requirements established in statute or under applicable rules of the Department of Commerce,odor standard requirements as established in ordinance by a local unit of government or by Minnesota Statutes,section 116.064,or rules adopted thereunder;and A cannabis business must determine the classification of all waste,including cannabis waste,of the business.A cannabis business must ensure that all waste is stored,secured,maintained, and disposed of in accordance with this chapter and all other applicable local,state,and federal laws and regulations...A cannabis business must render nonhazardous cannabis waste for disposal unusable and unrecognizable before allowing the nonhazardous cannabis waste to leave the premises of the business.A cannabis business must follow the requirements of part 7035.2836 when composting unusable and unrecognizable nonhazardous cannabis waste.”11 Ground and mixed with noncannabis waste like detergent,soil,sand,garbage or absorbed in cat litter,it must be documented.Large amounts of waste must be stored in a secure location until transferred to a landfill or compost facility (Oregon)12,12.Minneapolis Kombucha doesn’t expect to have large amounts of waste.The standard now is to even ship dried flower prepackaged,so the retail business almost becomes ancillary,with the packaging acting as a buffer.Generation of waste is more likely from expired materials,which could be transported back to the manufacturer per agreement or rendered unusable while maintaining security subsequently.This waste can also be transported to a facility designed to accept and render cannabis waste unusable.Transportation between the same business is permitted,though that facility is still preliminary at this juncture. All applicable handling,transfer,sales and any other weight or product quantity-based data must be entered and only entered into the statewide monitoring system.Joshua R Bruns will be the currently designated administrator for the statewide monitoring system and will train any and all employees as system users.”14 “In a single transaction,a cannabis retailer must not sell more regulated products to a customer than the customer is able to legally transport.” Storage. “A cannabis business must develop procedures for storing regulated products in a controlled environment.The storage procedures must ensure that regulated products are free from contamination. A cannabis business must ensure that all cannabis or hemp workers employed by the business follow the business's storage procedures and maintain a record of the cannabis or hemp workers'compliance with storage procedures.A cannabis business must ensure that the business's storage procedures and records are readily available for inspection by the office upon request.A cannabis business's storage procedures must include the following requirements.A cannabis business must ensure that product storage areas are used only for the storage of regulated products.A cannabis business must store regulated products in a manner that ensures that there is no mixing between batch numbers or different types of regulated products.A cannabis business must maintain and have available for inspection records that describe the date and time of each occasion when a product storage area was accessed by X-C-01 an individual,the name of the individual,and the regulated products that were added or removed from the storage area.Storage area specifications.A cannabis business must store regulated products at least six inches above the ground of any storage area.A storage area must be clean,well ventilated,and free from condensation,sewage,dust,dirt,pests,chemicals,and other contaminants.Secure access.A cannabis business must keep a storage area locked with access restricted only to authorized personnel. A cannabis business must post signage that indicates "Restricted Access.Authorized Personnel Only" at the entrance of a storage area.Cleaning.While cleaning a storage area,a cannabis business may remove a regulated product from the storage area to prevent the contamination of regulated products. When regulated products are removed for cleaning,a cannabis business may store regulated products temporarily outside of the storage area in a manner that prevents contamination or mixing of batch numbers or different product types...Cannabis waste storage.A cannabis business must store cannabis waste,including products that failed testing,in a secure and separate location from sale-able cannabis products until the business has disposed of or remediated the cannabis waste or failed products.For purposes of this subpart,a secure and separate location includes a container,closet,or room that is able to be locked or secured.”11 Product,Currency Storage;Vault Alarms. Managing stock and inventory:Use,maintain records of compliance,and train all employees in use of state monitoring system,maintain training records of compliance Consult with CPA to enumerate inventory’s relationship to tax documents Record inventory stats manually as well;each batch has its own title/folder/record and is maintained for 5 years;tag/label each batch with product description,quantity/timing,,ingredient list (fertilizer,soil amendment,pesticide,fungicide),weight,date,name and license,storing location, individuals involved.Make available records upon request. Record each time inventory is rotated,moved,or wasted out. Segregated facilities and segregated employee duties:each aspect of the business (nursery, vegetative,flower,drying,trimming,curing/storing,wholesale,retail)segregated by redundant physical barriers,sign-in/out documents,locks,key codes,etc. “All areas where cannabis...products are processed or stored must be controlled and access restricted to authorized personnel...inventory records must be maintained for work-in-progress and finished goods...a commercial vault should be installed...signs that read ‘Restricted Area -Authorized Personnel Only’or equivalent must be posted in all areas where cannabis...products are processed and stored.”2 All cannabis and cannabis products that are outside of the Vault during business hours will be stored in a locked and secured custom display case designed to protect the product.These locked display cases with an interior alarm system installed that will activate when the display case doors are opened without turning off the alarm...Only approved agents will have the display door key and remote-control release button to open the display case..In addition,safes used for cannabis and currency will be equipped with an alarm system to transmit,upon unauthorized entry,a signal to all security monitoring entities,including the dispensary Security Room,the third-party monitoring agency,and appropriate law enforcement..”14 “All cash received,except that needed for retail customer transactions will be kept in a secure receptacle such as a drop safe (business hours)or high security safe (overnight). In the Vault,[Minneapolis Kombucha]will have a separate safe in which valuable objects and cash will be located at night.Cash revenue of [Minneapolis Kombucha]will be removed from the dispensary automated cashier daily and placed in the main cash safe located in the Vault after the dispensary X-C-01 has closed.Senior management will maintain two-person verification by supervising the daily deposit of revenues into the cash safe.All deposits of cash into the main safe will be logged with an accurate count and signature of management.From time to time,senior management will conduct unscheduled spot checks or audits of cash in the safe.”14 “...all cannabis and currency will be stored on premise in a reinforced Vault in a restricted access area when the dispensary is closed,and in a manner as to prevent diversion,theft,or loss.In accordance with Title 21 Code of Federal Regulations §1301.72(a)(3)(iv),the walls or perimeter of the vault will be equipped with an alarm.Upon unauthorized entry,alarms shall transmit a signal directly to a central station protection company,a local or State police agency which has a legal duty to respond,or a 24-hour control station operated by [Minneapolis Kombucha]Additionally,Minneapolis Kombucha may implement other protection measures such as holdup buttons at strategic points of entry to the perimeter area of the vault.”14 Minneapolis Kombucha will maintain the highest integrity of the cannabis storage and retail space at all times,including control by a temperature alert system connected to the central alarm system. “The Vault has been designated to be the only area in the dispensary to store all salable, quarantine,and pending-disposal cannabis and cannabis products outside business hours.In compliance with 21 CFR 1301.72,[or applicable MN Law]the Vault walls,floor,and ceiling will be constructed with at least 8 inches of reinforced concrete,additionally reinforced vertically and horizontally with 1/2-inch steel rods,tied 6 inches on center [or acceptable equivalent under MN Law and OCM].Additionally,the vault will feature 18-gauge structural studs made of galvanized sheet metal meeting requirements of ASTM A1003,9-gauge,Type II,Class 1 carbon steel security mesh and attachment clips meeting ASTM F1267 on either side of the studs,and an interior covered by UL and ULC Classified,Type X (per ASTM C1658),and impact-resistant,moisture-resistant, noncombustible gypsum board tested to ASTM E136 or comparable materials and standards.This thick wire mesh has 3"square grids and will be mounted both vertically and horizontally to fit all parts of the interior of the wall [or equivalent under MN Law and OCM].The Vault will only be accessible through a Class 1 vault door constructed with 1/4"plate steel,a multi-bolt locking system,and a Group 1R lock attached to the concrete structure.The Vault door will also be installed with a commercial grade combination lock and proximity access reader.Authorized individuals will have to use their personal security proximity access card and enter the combination to open the Vault door. This two-factor authentication will prevent access to individuals using the proximity access card of an authorized individual.A log of all entries and code changes into the Vault will be maintained with the security record...”14 “The walls and perimeter of the Vault will be equipped with an alarm system which will notify agents in the Security Room,a third-party security monitoring company,and the appropriate police agency.In accordance with Title 21 Code of Federal Regulations §1301.72(vi),the vault will incorporate devices or systems designed to detect illegal entry,which may include:Complete electrical lacing of the walls,floor,and ceilings;Sensitive ultrasonic equipment within the vault;A sensitive sound accumulator system For storage of currency and additionally secure storage within the Vault, [Minneapolis Kombucha]will utilize a Tool-and-Lock 30-minute rated (TL-30)safe with a 5-minute Group 1R time-delay lock [or acceptable equivalent under MN Law and OCM].The Class 1 and Group 1R designations ensure that the vault and all safes are certified for 30 man-minutes against surreptitious entry,10 man-minutes against forced entry,20 man-hours against lock manipulation,and 20 man-hours against radiological techniques [or an acceptable equivalent under MN law and OCM].. These safes will be equipped by the alarm system to,upon unauthorized entry,transmit a signal to all security monitoring entities including the Security Room,the third-party monitoring agency,and appropriate law enforcement.”14 X-C-01 Cash Protocols inside the Dispensary Cash is currently the most popular method of payment for transactions involving cannabis or cannabis products.Steps will be taken to ensure that the cash is handled properly and that criminals do not target dispensaries and agents for their cash inventory in addition to their cannabis inventory. Additionally,cash will be monitored to guard against agent theft and diversion practices.[Minneapolis Kombucha]will have at least two (2)cashiers working during all business hours in order to expedite any purchases and ensure that the number of visitors present at any one time never becomes overwhelming for both the agents and the onsite security guards.There will be duress alarm buttons placed on the underside of the checkout counter within easy reach of every cashier...that by design and purpose will directly or indirectly notify,by the most efficient means,the Public Safety Answering Point for the law enforcement agency having primary jurisdiction.The agent will always print a receipt for the products purchased.Every transaction will be recorded by the Point-of-Sale inventory system that provides both the purchaser and [Minneapolis Kombucha]with a record of the sale. [Minneapolis Kombucha]...will utilize video camera or cameras recording at each POS location allowing for the identification of the dispensing organization agent distributing the cannabis and any purchaser.The camera or cameras shall capture the sale,the individuals and the computer monitors used for the sale.Proprietary software will link the transaction with its video recording...All cash received,except that needed for purchaser transactions,will be kept in a secure receptacle such as a drop safe or other type of safe.In the Vault,[Minneapolis Kombucha]will have a separate safe in which valuable objects and cash will be located at night...Cash revenues will be removed from registers daily and placed in the main cash safe located in the Vault after the dispensary has closed. Management will maintain two-person verification by supervising the daily deposit of revenues into the cash safe.All deposits of cash into the main safe will be logged with an accurate count and signature of management.From time to time,the agent-in-charge will conduct unscheduled spot checks or audits of cash in the safe.”14 Cashier Accountability Each agent handling cash will be trained in efficient and safe cash management techniques.All transactions will be handled at the counter before the register to which the agent is signed in.No agent will be assigned multiple purchasers in the Dispensing and Display Area.A drop safe will be located under the counter at the service window,and the cashier will be required to make periodic cash deposits into the drop safe each time the contents of the cash drawer exceeds [$2,000].All agents will be held accountable for the balance of their drawers periodically during working hours and at the close of each day.If an agent does not balance within one percent (1%)of perfect on three occasions,that agent may be terminated or removed from any position involving the handling of funds.All funds remaining in cash drawers and all funds in the drop safe will be deposited into the main safe at the close business each day.Periodically,management will conduct unscheduled audits of cash drawers.”14 Non-Cash Transactions [Minneapolis Kombucha]“will utilize all possible avenues to make transactions with payment other than cash,such as checks and credit cards,whenever feasible.Purchasers spend more via electronic payments than cash,and agents and purchasers feel safer when the large amount of cash on- hand is reduced,leading to less crime and more community acceptance.Non-cash financial transactions are a dynamic topic in the cannabis industry,and [Minneapolis Kombucha]will ensure full legal compliance and thorough information security standards as this aspect of the industry develops.All funds will flow through USA-based financial networks in a transparent manner.”14 X-C-01 Security Protocols. Minneapolis Kombucha “will implement appropriate security and safety measures to deter and prevent the unauthorized entrance into areas containing cannabis to mitigate risks of cannabis theft. Minneapolis Kombucha will keep access from outside the premises to a minimum and will ensure access is well controlled,including establishing a locked barrier between the facility’s entrance and the limited access area...Additionally,Minneapolis Kombucha will utilize electronic door locks on limited and restricted access areas and will include devices to detect unauthorized intrusion,which may include a signal system interconnected with a radio frequency method,cellular,private radio signals, or other mechanical or electronic device...Minneapolis Kombucha will restrict access to any area containing cannabis to all persons except authorized agents and individuals permitted to access those areas of the premises under the supervision of an authorized agent.”14 To prevent sharing of access credentials and regulate the access of agents and visitors, [Minneapolis Kombucha]will employ a modular,scalable access control system for limited and restricted areas.[Minneapolis Kombucha]will provide identification badges/key cards for dispensary agents based on the area to which they are assigned at a given time to ensure that only agents necessary for a particular function have access to that area.”14 “All safes,the Vault,the security equipment,or areas utilized in the dispensing process will remain securely locked and protected from entry until the time required to access.In accordance with Minneapolis Kombucha will ensure all access doors are not solely controlled by an electronic access panel to ensure that locks are not released during a power outage,and where permissible,locks will be fail-secure,meaning a power failure will not automatically release door locks.”14 “Cameras in the ID Check-In and Security Room will record individuals every time they enter and exit,and the digital video recorder will store photos from these recordings so that up-to-date photos of agents,visitors,and contractors are maintained.Vendor partners’product delivery vehicles will arrive under direct video surveillance that covers all approach routes to the dispensary receiving area.Dispensary onsite security guard or Agent-in-Charge will remotely monitor the vehicle as it arrives.Transportation organization identification and its delivery vehicle make and model will be recorded by the video surveillance system.Additionally,cash pickups and deliveries will be conducted in a secure area of the dispensary in full view of a security camera.”14 “The Agent-in-Charge shall be a principal officer or a full-time agent of the dispensing organization,who manages the dispensary;he or she will receive notifications of all alarms.Additionally,manual alarms including a duress alarm,panic buttons,holdup alarms and after-hours intrusion detection alarm will directly or indirectly notify,by the most efficient means,the public safety answering point for the law enforcement agency having primary jurisdiction...”14 Minneapolis Kombucha “will restrict access to any room containing security monitoring equipment to the following:agents who are essential to maintaining security operations;law enforcement agencies;security system service agents;the Department;and others when approved by local officials or the Department.[Minneapolis Kombucha]will keep the Security Room and I.T. Closet locked at all times and will not use the rooms for any other purpose or function...All agents will be required to sign a confidentiality agreement,the breach of which will because for immediate termination.The confidentiality agreement will,among other things,prohibit agents from sharing their access proximity security cards and/or PIN codes.”14 “Secured areas such as the Vault and Security Room will be equipped with a two-factor authentication key card and PIN code access system.Authorized individuals will present their access control card at the proximity reader and if they are currently authorized to enter,the reader will require X-C-01 a PIN code to determine if they are authorized entry before releasing the entry-locking hardware.Only those agents with a need to access particular areas of the dispensary will be given the necessary authorization [alongside a duress pin code]”14 Employees will have access to a hold-up alarms.“Whenever a burglary alarm notification is received,agents and management will treat the event as a burglary until discovered otherwise.” [Minneapolis Kombucha]will incorporate a commercial standard alarm control panel.The alarm panel provides multiple zones of protection,an always-on Department IP connection,graphic keypad support and dual partitions.The alarm panel provides the ability to send alarm signals and upload/download via an Internet Protocol.The control panel will send a signal or polling to the alarm company every 200 seconds to ensure the system is in good working order and transmitting to the alarm company.[Minneapolis Kombucha]will be controlled by an alarm keypad.The keypad will feature a 32-character display with easy-to-read plain-English status messages,back lit keys,audible beeps,and clearly labeled system functions.The alarm keypad will also be equipped with a duress code.This duress code will allow the user to transmit a silent signal to the alarm company indicating that the user is being forced to turn off the alarm system.The Security Manager will thoroughly train all agents on agent security policies for handling breach of security,robbery,violent incident,or other emergencies,and will detail these policies in the operations manual. Minneapolis Kombucha “will maintain the premises and the alarm system in a manner that will reduce or eliminate false alarms [and]instruct all persons who are authorized to place the alarm system into operation in the appropriate method of operation,and to lock and secure all doors and windows and other points of entry...[to]not manually activate an alarm for any reason other than an occurrence of an event that the alarm system was intended to report;annually renew alarm permits; and have a licensed alarm business annually service and test any alarm system that does not have a self-test or a backup battery and wireless sensors.”14 “All persons entering the facility will be immediately greeted by Security who will verify that the person may remain on the premises and will direct them as necessary (e.g.sign into the visitor’s log or await entry into the dispensary space).Any unauthorized person will be denied access to the Waiting Area and the Dispensing and Display Area.Adult-use purchasers will show a government- issued ID and dispensary agents will show their badge identification.After authorization to enter has been verified,Security will permit entry into the restricted areas of the facility.Security personnel will have remote access via a buzzer to unlock the door to the Dispensing and Display Area.Security will have access to a hold-up alarm.Anyone stationed in the Security Room will have visibility through Level 2 bullet-resistant windows.The security guard and management will also have multiple video monitors in the Security Room to facilitate constant surveillance of the premises and protect against casing or collaborative theft techniques (such as distracting the guard).The security guard will have access to a hold-up alarm and will be the immediate respondent to activation of the intercom system in the rear,which is intended only for use by transportation organizations when they arrive.Finally,an agent will remotely regulate access via a buzzer to unlock the door to the Dispensing and Display Area [which are further protected by security film].”14 “With the approval of the Fire Commissioner and other necessary permissions,[Minneapolis Kombucha]will install mantraps (a space with two sets of interlocking doors,such that the first set of doors will close before the second set opens)where unauthorized entry may be gained by covert or forceful means.For example,a mantrap is used on the Product Entrance and Vault doors and both doors connecting to the ID Check-In Room to ensure unauthorized individuals cannot illegally enter or “rush”the doors to escape after a robbery or violent incident.Mantraps will be programmed in compliance with all fire safety requirements.”14 Ensuring clear and accessible emergency exits,which are crucial for safe evacuation during a fire,must be maintained while implementing security measures such as surveillance systems and access control to protect both the facility and its occupants while X-C-01 adhering to safety regulations.Therefore a remotely controlled door into the waiting area before the two-door vestibule is required as an additional buffer.Furthermore an extended vestibule will mitigate any potential rush.Security personal would in this design have increased control by observation alone when determining when to grant access. “To deter unauthorized agents from entering secured areas,Minneapolis Kombucha will post a sign at every entryway into any area of the dispensary containing cannabis or cannabis products, including the Vault.”14 “At the close of the business day,two agents will inventory cannabis products from the Day Storage Area or cabinets in the Dispensing and Display Area,and take it to the Vault for overnight storage.[Minneapolis Kombucha]will store all currency and cannabis in the process of transfer, analysis,or sale in a reinforced Vault in the restricted access area in a manner as to prevent diversion, theft,or loss when the dispensary is closed.Cannabis will not be stored outside.Cash drawers will be reconciled,and the cash taken to the Vault,where it will be stored in its own safe,separately from cannabis.”14 “All visitors will be required to sign a visitor log upon entering and leaving the store.In order to obtain a visitor identification badge,a visitor will provide a valid government-issued identification which will contain their name,photograph,and date of birth.If the visitor’s age and reason for entering are valid,then the visitor will be asked to sign in and briefly describe their reason on the visitor/vendor log of [Minneapolis Kombucha]before they may enter the facility.The visitor/vendor log of [Minneapolis Kombucha]will contain the following information:Badge Number,if applicable; Full Name;Company or Agency;Date of entry;Purpose of visit;Areas of the Site visited;Escort Name;Time of Arrival;Time of Departure;and Signature.All visitors will be given a numbered visitor/vendor badge with the visitor’s name and company.All visitors will visibly wear the badge at all times while in any area of the store.All visitors will be escorted by an Minneapolis Kombucha agent to ensure that they do not touch anything they are not authorized to.At the conclusion of the visit,visitors will return the visitor badge and sign out on the visitor log.”14 Minneapolis Kombucha “will ensure storage provides adequate lighting,ventilation,sanitation, temperature,and humidity,as well as the space,equipment,and security conditions for the dispensing of cannabis...All cannabis that requires refrigeration will be kept in a refrigerator unit with a door that will be secured and protected from being compromised by a prying device.The temperature will be set to maintain the highest integrity of the cannabis at all times and controlled by a temperature alert system connected to the central alarm system.”14 Parking will be reserved on the southeastern space of the western parking lot for deliveries. These delivery personnel can then walk along the southern face of the building into a fenced and covered walkway into the rear vestibule.The exterior change would required would be a suitable fence or reinforced wall along the eastern rear of the building.Require communication with management (alongside the many necessary requirements for a delivery license)allows for monitoring of the deliverer and surrounding spaces,and remotely unlocking of the first of 3 doors necessary rear entry. Minneapolis Kombucha must comply with all inspections and requests for records by OCM, permitting OCM entry for inspection,providing samples for regulatory testing at no cost. Security measures inherently aim to and will protect assets,the building,products,workers, visitors,and the community.The aim is to deter theft and diversion,not to catch offenders. Minneapolis Kombucha will maintain security measures to guard against unauthorized access to the premises,motor vehicles,if any,used in the transport or delivery of cannabis products,electronic business and customer records,and paper records. Minneapolis Kombucha will maintain a record of the names of individuals who enter restricted areas for at least three years,making these records available to OCM upon request. Security personnel will be employed,and they must meet the training requirements in MN X-C-01 statute 326.3361. A retailer (Minneapolis Kombucha)must confirm that an individual in the retail area is 21 years of age or older when selling any regulated product,using a form of identification requires by MN Statues section 342.27,subd.4 (b). A retailer (Minneapolis Kombucha)must control access to restricted-access areas.A retailer must ensure that only authorized personnel or members of the office have access to restricted-access areas.An entry log recording name,date,and time of exit and entry are required.All entries to restricted-access areas with conspicuous signage that states:"WARNING:RESTRICTED AREA, AUTHORIZED PERSONNEL ONLY"will be installed. “A local government that believes a licensed cannabis business within its jurisdiction is in violation of this chapter or Minnesota Statutes,chapter 342,may request an inspection by the office...” Transportation and Cash Protocols Depositing “All information that this chapter and Minnesota Statutes,chapter 342,require for a cannabis business to physically transport products before the products leave the business's facility.”No transportation by the business away from the retail location is actually part of the current business plan,but these remain applicable for waste or returns.A licensed transporter will take charge of pickups via the drop of location. [Minneapolis Kombucha]“will contract with a third-party security company that utilizes an armored vehicle or comparable secured transportation to transport cash deposits from the dispensary to its financial institution.Cash transporters will be required to operate in compliance of all regulations by OCM...Senior management will order cash pickups at periodic,alternating intervals...Prior to cash pickups,under the supervision of senior management,an agent will:..Count and sign the safe log for all outgoing deposits...Utilize dual-pouch,tamper-resistant depository bags...Write the deposit information in the space provided on the outside of each depository bag...Record the number of bags and each unique bag number on a deposit ticket and retain a copy of the deposit ticket for [Minneapolis Kombucha]records...Seal all depository bags...Cash pickups will be conducted in a secure area of the dispensary in full view of a security camera.During cash pickups,under the supervision of senior management,an agent will...Verify the armored truck guard’s identification badge...Record the package quantity being shipped...Ensure that all guards wear a name tag and are escorted by an agent for the full duration of time they are within the dispensary.”14 Receiving Procedures. Minneapolis Kombucha “procedures for receiving shipments will guarantee safe and efficient transfer of cannabis and will enable its agents to transport cannabis safely and quickly from the transportation vehicles to the Vault.These procedures will minimize any potential for diversion of cannabis,loss of cannabis,or mistake in shipment details.An agent of [Minneapolis Kombucha]with authorized access (the “inventory agent”)to the Vault will verify that the Vault can be opened and closed without incident and that there are no obstructions in place between the Product Entrance and the Vault. Having a clear path to the Vault will protect against possible accidents that could jeopardize the safe and exact transfer of cannabis.The inventory agent will ensure that the Vault is neat,clean,and free of any other debris or material from prior deliveries.Security guards and inventory agents will monitor the premises and all neighboring areas for individuals conducting unauthorized surveillance, suspicious vehicles,or any other irregularity inside or outside the premises.If such suspicious persons or activity are noticed before receiving begins,[Minneapolis Kombucha]will immediately contact the transportation organization and instruct them to abort the shipment.Any individuals not associated with the transportation organization or [Minneapolis Kombucha]will be asked to leave the immediate area.[Minneapolis Kombucha]will also ensure that an authorized [Minneapolis Kombucha]agent is X-C-01 adjacent to a panic or hold-up alarm button(s)and is instructed to activate the alarm in case of an emergency.All [Minneapolis Kombucha]managers and agents will be trained to detect threats and suspicious activities on or around the premises.If any security guard or agent perceives a threat and believes the dispensary to be in imminent danger,the security guard or agent will initiate a lock down and immediately notify the local law enforcement of the perceived threat.[Minneapolis Kombucha] management will also notify the transportation organization and instruct them to abort the delivery.If no threat is perceived,the scheduled delivery will be allowed to proceed.The Product Entrance will then be opened to allow shipments to be transferred into the Vault.Once in the receiving area,the Product Entrance will be closed and secured before shipping manifest verification begins.During business hours,shipments of cannabis or cannabis products will not enter the premises through the public entrance.The Product Entrance will only be opened for prescheduled and approved deliveries. Access to the receiving area will be restricted to transportation organizations.All authorized agents will have security training relevant to receiving shipments.Transportation organization identification and the vehicle make and model will be verified on the manifest before an [Minneapolis Kombucha] agent engages in the receiving process in full view of the video surveillance system.To safeguard against any loss or diversion of shipments,video surveillance will record all areas associated with receiving cannabis and moving it into the Vault,including all license plates and faces Minneapolis Kombucha will create standard operating procedures for its inventory agents to address various issues that can arrive during the receiving process.Among the issues that will be covered in the standard operating procedures will be attempted theft during the receiving process and packaging malfunctions that leads to spillage of cannabis.Shipments will only be received between the hours of 6:00 a.m.and 10:00 p.m.local time.The transportation organization vehicle will arrive under direct video surveillance that covers all approach routes to the receiving area.Either the security guard or a senior manager will remotely monitor the vehicle from the Security Room as it arrives.At this time, receiving will commence via Product Entrance,through the Receiving Area and into the Vault,where inventory will be counted.After verification against the manifest,inventory will be entered into the inventory control system and the order will be accepted contractually.[Minneapolis Kombucha]will [be available to]work with the Police Department and [obviously contract]security professionals to select the most secure method of loading/unloading.After the completion of delivery,the inventory agent will ensure all product verification of packaging and labeling meet [Minnesota]regulations and will enter the time and date that delivery was completed onto each physical copy of the manifest.This information will be added to and/or verified in the inventory control system.”14 If any delivery parameters cannot be met,Minneapolis Kombucha will only accept deliveries before or after regular business hours. Background Checks. “The operation must implement emergency procedures for securing all product and currency following any instance of diversion,theft,or loss...must conduct a security risk assessment to determine whether additional safeguards are required...must provide documented cash management training to workers who handle cash including managing cash transactions with customers and suppliers.”2 Armed Robbery Response. Remain calm...comply..announce your actions to the robber so they don’t feel threatened by your movements...give the robber any money or goods that they ask for without resistance,but don’t offer up anything they haven’t already mentioned...make mental notes about the robber’s appearance so you can inform police...never attempt to physically stop an armed robber...when the robber leaves, secure the building as soon as it is safely possible...do what you can to make sure you stay safe...do X-C-01 not be a hero...prioritize safety and an end to the situation.15 Armed Security Guard. Minneapolis Kombucha will employ an armed security guard at all times during regular business hours,per the SOPs of that licensed contracting company,or as applicable under OCM and MN law. The “mere presence of an armed guard can be enough to prevent crime without a single shot being fired...”A trained and qualified guard creates confidence with clients and community concerns. Guards act as a visual reminder to employees alike.This contracting company’s protocols will be integrated into that of Minneapolis Kombucha. Security Monitoring. “The operation must install video monitoring equipment that satisfies all local regulation pertaining to monitoring of cannabis facilities...equipped with an automatic failure notification system...date and time must be embedded on every frame of all surveillance recordings...[with]an automatic batter backup system...all equipment must be stored in a locked secure area...files must be password protected...quality and coverage must allow for clear visual identification of individuals and activities...within 20 feet of all points of entry to and exit from the registered facility...HD quality (1920 x 1080 -2.1 megapixel)...External areas:high-resolution (2048 x 1536 -3.1 megapixel recommended Ip66 rated camera with wide dynamic range capable or recording in all lighting and weather condition...coverage must include...all secure and restricted access areas...all point of sale areas...all points of entry to or exit from secure and restricted access areas...all points of entry to or exit from the registered facility....views of all entries,exits and secure and restricted access ares must be continuously recorded by video surveillance equipment 24 hours a day,365 days a year...[with] adequate...signage...Volume [can be manged by]low frame rate [balanced with]high frame rate... with motion activation...stored in a raw non-editable and unedited format that preserves it as a legitimately captured video and guarantees that no image alterations have occurred...retained for a minimum of 45 days...in a format that can be easily accessed for viewing...password protected... [with]preventative maintenance...to ensure continuity of coverage,check signal loss and integrity of anti-tampering features,etc. Maintain and follow a security plan.Install (continuous)surveillance cameras at entry and abroad,alarm systems,“access control mechanisms,and secure storage solutions”3 Pixel Security offers “long-standing industry lead[ing]...electronic security and digital video solutions...masters of cannabis facility security and compliance.” Wayne Alarm specializes in custom security solutions for cultivation and retail operations. Ensure video evidence and recording of ID verification is maintained. Maintain restricted access records “Develop,document,implement,and maintain a comprehensive security program that protects the business assets,facilities,products,worker,visitors,and the community from risks and threats... The security program must include:...mission and purpose...roles...confidentially...systems..cash revenue management...record keeping and reporting...employee policies...diversion... ingress/egress...inventory control...safety policy...emergency policies and procedures.”4 Initiate a security risk assessment (maintain,maintain compliance,initiate updates)that reviews “all threats...and hazards...to assets”and a subsequent program that includes a “specific action plan... to mitigate all risks including:exteriors/perimeter...doors,windows and other opening...interior areas of site or building...property and equipment...general security processes/protocol...alarm systems... security employees and contractors...cash management procedures...worker procedures...worker background checks...opening and closing the facility...managing and removing trash...working with vendors...working with contractors...threats from neighbors...training and monitoring employees... X-C-01 general management practices...managing security emergencies...plans for dynamic entry or intentional threat.”4 “The operation must be continuously monitored by a building-wide alarm system...linked to security,management and police...alarm should have dual pass-through communication capability... redundant phone and internet lines must be installed...deliver as automatic power outage notification... includes fire and smoke detection...pedestrian doors,overhead doors and roof access points must be equipped with door contact sensors connected to an intrusion alarm system...roof area should be monitored by motion sensors to prevent cut-and-drop intrusion.” “Alarm monitoring...must be monitored 24/7 by bonded,accredited or certified professional security company...a 2-minute response time or less and clearing code process validated via phone by authorized representatives[is required]...includes fire and smoke detection...activated for all power outages.”4 Video surveillance must be maintained for all premises associated with Minneapolis Kombucha’s exercised endorsements,that is,the entire physical retail location. “The operation must install video monitoring equipment that satisfies all local regulations pertaining to monitoring of cannabis facilities...equipped with an automatic failure notification system...date and time must be embedded on every frame of all surveillance recordings...[with]an automatic batter backup system...all equipment must be stored in a locked secure area...files must be password protected...quality and coverage must allow for clear visual identification of individuals and activities...within 20 feet of all points of entry to and exit from the registered facility...HF quality (1920 x 1080 -2.1 megapixel)...External areas:high-resolution (2048 x 1536 -3.1 megapixel recommended Ip66 rated camera with wide dynamic range capable or recording in all lighting and weather condition...ensuring 24-hour recording at a minimum of 15 frames per second,a resolution of 720p,with date and time stamps on all recordings...coverage must include...all secure and restricted access areas...all point of sale areas...all points of entry to or exit from secure and restricted access areas...all points of entry to or exit from the registered facility [within a radius of 20 feet)...views of all entries,exits and secure and restricted access ares must be continuously recorded by video surveillance equipment 24 hours a day,365 days a year...and stored for 90 days in a secure place... affixed to the exterior and interior of the retail store’s premises,limited access areas,and restricted access areas...monitoring each entry and exit point of the perimeter,including where cannabis is stores,prepared,displayed or sold,and destroyed...[with]adequate...signage...Volume [can be manged by]low frame rate [balanced with]high frame rate...with motion activation...stored in a raw non-editable and unedited format that preserves it as a legitimately captured video and guarantees that no image alterations have occurred...in a format that can be easily accessed for viewing...password protected...[with]preventative maintenance...to ensure continuity of coverage,check signal loss and integrity of anti-tampering features,etc.Advanced cameras that can detect people entering the dispensary in low-to no-light situations.Cameras will be of quality to easily identify facial patterns. Maintain and follow a security plan.Install (continuous)surveillance cameras at entry and abroad,alarm systems,“access control mechanisms,and secure storage solutions”1 Pixel Security offers “long-standing industry lead[ing]...electronic security and digital video solutions...masters of cannabis facility security and compliance.” Wayne Alarm specializes in custom security solutions for cultivation and retail operations. Ensure video evidence and recording of ID verification is maintained. Maintain restricted access records and make these and all other video records available for viewing by OCM upon request,on an accessible application for OCM staff to access,maintained free of alteration or corruption,and erased and destroyed before disposal. These plans detail how Minneapolis Kombucha will “[d]evelop,document,implement,and maintain a comprehensive security program that protects the business assets,facilities,products, X-C-01 worker,visitors,and the community from risks and threats...The security program must include: ...mission and purpose...roles...confidentially...systems..cash revenue management...record keeping and reporting...employee policies...diversion...ingress/egress...inventory control...safety policy... emergency policies and procedures.”2 Initiate a security risk assessment (maintain,maintain compliance,initiate updates)that reviews “all threats...and hazards...to assets”and a subsequent program that includes a “specific action plan... to mitigate all risks including:exteriors/perimeter...doors,windows and other opening...interior areas of site or building...property and equipment...general security processes/protocol...alarm systems... security employees and contractors...cash management procedures...worker procedures...worker background checks...opening and closing the facility...managing and removing trash...working with vendors...working with contractors...threats from neighbors...training and monitoring employees... general management practices...managing security emergencies...plans for dynamic entry or intentional threat.”2 “The camera(s)will capture the sales transaction,affiliated individuals,and the POS computer monitors used to transact each sale.”14 “The operation must be continuously monitored by a building-wide alarm system...linked to security,management and police...alarm should have dual pass-through communication capability... redundant phone and internet lines must be installed...deliver as automatic power outage notification... includes fire and smoke detection...pedestrian doors,overhead doors and roof access points must be equipped with door contact sensors connected to an intrusion alarm system...roof area should be monitored by motion sensors to prevent cut-and-drop intrusion.” “Alarm monitoring...must be monitored 24/7 by bonded,accredited or certified professional security company...a 2-minute response time or less and clearing code process validated via phone by authorized representatives[is required]...includes fire and smoke detection...activated for all power outages.” Security Equipment. Use statewide monitoring system for tracking,inventory,and verification to track all plants, flower,and product in possession to the point of disposal,transfer,or sale.1 Conspicuously mark and create obvious signs of surveillance into restricted areas Employ logs,paperwork as security equipment Offer vouchers or bonuses or raises as incentives for employees Advanced motion sensors,glass break detectors,24/7 monitoring,high-resolution cameras, remote access,data protection,hard line wiring,sound and weight sensors,and anything else the industry has to offer. Physical barriers:“apply methods to prevent unauthorized access...prevention methods include fencing,locked gates,secure doors,window protection,automatic access systems and other physical barriers and reinforcements...[complying]with local security,fire safety and zoning regulations and GMP. Advertise community investments to deter theft;create a sense of community. A security plan is well operating security equipment.“ensure external areas are clear of obstructions,well illuminated and covered by surveillance systems...[including]adjacent buildings, neighboring businesses and residential areas,ingress and egress and exterior signage.” “Door locks”[are]sturdy [and]commercial grade and installed on all doors and gates... [complying]with code regulations...key distribution must be controlled...RFDI access...must be controlled...in conjunction with a PIN code...Biometric entry systems must be...controlled and documented...procedures must ensure keys,locks,codes and biometrics are changed immediately as require by personnel access privilege changes or breaches.” X-C-01 “The operation must have procedures to control access to restricted areas...Procedures must identify restricted areas,set parameters for authorized access and document the physical controls implemented...[with]logs or digital records...appropriate inventory controls...signage indicating [a restricted area]...” Product control includes control over restricted areas...[and]“inventory records...a commercial vault”is necessary. “Motion detectors should be part of the security monitoring system and linked to active alarms, automatic lighting and automatic notification reporting...Panic buttons...should be placed within sight lines of all entrances/exits and in each separate physical area of the facility...linked to the monitored security system...establish a code word for emergencies to alert fellow workers.”2 Regular alarm maintenance and compliance records must be maintained along with tests. I attest that I will resubmit security plans upon adoption of final regulations and at point of identifying physical premises as a condition to converting a license in the attached worksheet. Minneapolis Kombucha will have a state-of-the-art security alarm system to prevent and detect diversion,theft,or loss of cannabis,currency,or unauthorized intrusion,and will feature commercial grade equipment installed by a private alarm contractor...Equipment to detect,deter and prevent unauthorized entrance into the dispensary,includes electronic door locks on limited and restricted access areas,and includes devices or a series of devices to detect unauthorized intrusion that may include attempts using a signal system interconnected with a radio frequency method,cellular,private radio signals,or other mechanical or electronic intrusion device.”14 Apply reinforced security film with impact protection adhesive anchoring system over exterior windows and glass doors.This will accentuate a glass break sensor,proper if mounted within a 25 foot range. Vault build with masonry construction,heavy gauge metal studs with wire mesh,prefabricated panels from a security company,an acceptable rated security door,pinless hinges,..13 Motion detectors and glass break detectors add to the overnight armed alarm system.14 Use statewide monitoring system for tracking,inventory,and verification to track all plants, flower,and product in possession to the point of disposal,transfer,or sale.1 Minneapolis Kombucha will use dual-technology motion sensors as part of the alarm system. Motion detection will trigger the alarm system at a specific zone if there is an attempted break-in through the roof,windows,or walls.Dual-technology motion detectors use ultrasonic wave analysis to detect indirect motion combined with passive infrared (PIR)sensors to detect direct motion.The combination of these dual-technologies is highly reliable and is more effective in areas with obstructions than standard PIR motion detectors.Conspicuously mark and create obvious signs of surveillance into restricted areas. Employ logs,paperwork used as security equipment,as will bonuses,raises,and quality pay acting as incentives and deterrents for employees. Advanced motion sensors,glass break detectors,24/7 monitoring,high-resolution cameras, remote access,data protection,hard line wiring,sound and weight sensors,and anything else the industry has to offer. Physical barriers:“apply methods to prevent unauthorized access...prevention methods include fencing,locked gates,secure doors,window protection,automatic access systems and other physical barriers and reinforcements...[complying]with local security,fire safety and zoning regulations and GMP. Advertise community investments to deter theft;create a sense of community. Part of a security plan is well operating security equipment.“ensure external areas are clear of obstructions,well illuminated and covered by surveillance systems...[including]adjacent buildings, neighboring businesses and residential areas,ingress and egress and exterior signage.” X-C-01 “Door locks”[are]sturdy [and]commercial grade and installed on all doors and gates... [complying]with code regulations...key distribution must be controlled...RFDI access...must be controlled...in conjunction with a PIN code...Biometric entry systems must be...controlled and documented...procedures must ensure keys,locks,codes and biometrics are changed immediately as require by personnel access privilege changes or breaches.”11 Minneapolis Kombucha will “use door transmitters to monitor when doors are opened.Most door contact sensors will utilize a circuit with magnetic contacts and a low current.When the door is closed,the contacts touch and create a “closed”circuit with a low current.When the door opens,the contacts no longer touch and create an “open”circuit through which a current cannot flow.”14 “The operation must have procedures to control access to restricted areas...Procedures must identify restricted areas,set parameters for authorized access and document the physical controls implemented...[with]logs or digital records...appropriate inventory controls...signage indicating [a restricted area]...” Product control includes control over restricted areas...[and]“inventory records...a commercial vault”is necessary. “Motion detectors should be part of the security monitoring system and linked to active alarms, automatic lighting and automatic notification reporting...Panic buttons...should be placed within sight lines of all entrances/exits and in each separate physical area of the facility...linked to the monitored security system...establish a code word for emergencies to alert fellow workers.”2 “Emergency remote panic alarm buttons will be strategically and discreetly located around the dispensary perimeter.Once activated by pressing the button on the unit,the panic alarm will signal an audible alarm that notifies the public safety answering point for the law enforcement agency having primary jurisdiction.”14 Regular alarm maintenance and compliance records must be maintained along with tests. If any contradictions are listed,the more stringent requirement will apply,as applicable under MN law. Minneapolis Kombucha “will only install commercial grade,non-residential metal doors and door locks on every external door to the store as well as at all access control entry points.The general public will be required to enter the dispensary through the front entrance.[Minneapolis Kombucha] will install cameras and door alarms to ensure that the perimeter doors are secured against unauthorized entry and break-in.All exterior doors will be monitored,and at least one video surveillance camera will be easily visible from the outside and pointed directly at the door in such a way as to capture clear and certain identification of any person entering or exiting the dispensary.This strategy is used to alert anyone entering the dispensary that there is an active video surveillance system,ideally deterring potential theft...[with a notification door alarm upon opening].”14 Exterior locks will be shielded with metal plates to prevent manipulation from the outside. Electric strike locks utilize electric pulses from a low-voltage source to indicate a door should open. Instead of a turning a key in a core to remove a lock,the pulse activates an actuator that removes the lock.Electric strike locks enable easier access control modification and are less susceptible to damage than physical locks...Additionally,in order to prevent unauthorized entry during non-business hours, Minneapolis Kombucha will secure all [other]points of entry with bars,retractable,folding or sliding metal gates,or metal roll up,accordion doors,or other commercial reinforcements.Exterior windows will also be secured by these means.”14 The retail location “will also be equipped with a radio automatic voice dialer which,when the alarm is activated,will send a prerecorded voice message requesting dispatch to the designated Agent, the central station alarm company,and law enforcement,public safety,and emergency services agencies.”14 “All devices will be tested on an annual basis by a third-party vendor.On an annual basis, X-C-01 [Minneapolis Kombucha]will undergo a full security risk assessment review by a third-party cannabis security specialist.A resulting security assessment summary will be submitted by the third-party specialist to management no later than 30 calendar days after review has been conducted.In the event that any assessment identifies concerns related to security systems or procedures of [Minneapolis Kombucha],the third-party security specialist will submit to management mitigation recommendation. All inspections,assessments,servicing,alteration and upgrade documentation will be maintained”and made available to OCM upon request.14 “The failure notification system will provide an alert to the designated agent within five (5)minutes of the failure,either by telephone,email,or text message.”14 The final vestibule can be remotely locked and unlocked from the inside based on the previous door being shut.When it too is on a remote lock security or staff will be able to remotely lock that door as the final exits door is unlocked,ensuring egress is available at all times,and as approved or adjusted by a security contractor or building inspector. Lighting. Lighting will sufficiently illuminate all possible points of intrusion,sidewalks and adjoining sidewalks,facades,parking lots,immediate surrounding areas,and exterior walls”of the retail location.“Cones of illumination will be directed downwards to direct beams of light in an overlapping fashion in case of bulb failure...”with doors and windows illuminated to an acceptable minimum (500 lux is 20 times the minimum standard for fideo monitoring).11 Lighting will be maintained in good working order inside and outside the retail location to deter nuisance and criminal activity by allowing observers to see and cameras to record any activity within a radius of at least 20 feet around all entrances and exits,while not disturbing surrounding business or neighbors by adjusting the lumen or radius to only illuminate the aforementioned areas.“Lighting must be repaired immediately,as detailed in the rules package.Switches and controls will be properly located,waterproof,tamper resistant,and centrally located.”14 Lighting surrounding the property should be sufficiently illuminating but also tasteful.If the City of Hastings wants to work with me on lighting from across the street that points towards 215 Ramsey and not into the windows I’d be thrilled to endorse your recommendations.Otherwise both ground level and suspended lights can illuminate particular walkways around the south side and throughout the alley.A fence here will render the walkway largely segregated both visually and physically,acutely defining the space,allowing for an increase in northeasterly and northwesterly facing lighting to utterly expose the space,but without the annoying levels of illumination. Minneapolis Kombucha is happy to work with the City planning and zoning/community development, as well as community members and neighbors,to most ideally install fencing and meet the requirements of local law. Locks. Windows and doors must be maintained in good working order,ensuring they can be securely locked with commercial grade locks.A security contractor will ensure this retail location is equipped with commercial-grade locks,with doors having electronic locks and keypads. The alarm system must be maintained in good working order,active 24 hours a day,seven days a week,monitored by a security company or an employee of Minneapolis Kombucha.The alarm system will provide immediate alerts to personnel and law enforcement,alerts of any hazardous conditions detected,a back-up alarm system that activates immediately upon the loss of electricity and alerts personnel of that loss of power,equipped with an audible alarm capable of being heard within a 100-foot radius from all entrances and exits,with the capability to remotely disable the audio alarm by authorized personnel.Alarm system failures longer than 8 hours will be reported to local law X-C-01 enforcement and OCM,implementing alternative security measures according to this security plan,or ceasing all operations until the alarm system is tested and in proper working order.11 Generally an alarm system at each door with indoor motion detectors,widespread video surveillance and lighting,industrial grade locks,and an immediate response protocol.All security systems will be on a backup power supply system,wired to marine batteries that will maintain 8 hours of standard surveillance and security in the event of a power failure.Testing of this backup system must occur every 90 days.This will be installed by reputable and suitable security contracting companies.This security build-out is a main line item in the budget we are anticipating.Repairs must be completed immediately or cease operations,as described in the rules package.Compliance protocols will be maintained both electronically and manually and must be available for inspection by OCM.The alarm system as well will be periodically tested “to ensure that the alarm system works property”.Repairs will be completed immediately,per the rules package.All operations must cease if the alarm system “is not able to operate as required by this chapter and Minnesota Statutes,chapter 342,then the business must cease all operations until repairs have been completed”,as detailed in the rules package.11 Cybersecurity. “Since even small businesses can be vulnerable to targets of cyberattacks,[Minneapolis Kombucha]will take all necessary steps to protect the information of its purchasers,agents,owners, board members,vendors,and other individuals who have shared sensitive information.Computer programs will be monitored and a secure system installed by a certified computer technician.Any personal health information will be maintained in accordance with applicable federal or state laws.All data uploaded to the State’s verification system on a secure,[Minneapolis Kombucha]-owned network. [Minneapolis Kombucha]will limit the use of passwords to registered,authorized agents.Access to the security equipment and computer will be password protected.Management will be required to safeguard this password by keeping it confidential and not writing it down in an area that could be accessed by others.To protect the safety and privacy of customers and to prevent potential diversion, the use of cell phones and cameras by agents and purchasers will be prohibited in the Limited and Restricted Access areas.Use of company-provided electronic communication tools by dispensary agents will be exclusively related to company business.Dispensary [employees]may not access the Internet or use the dispensary computers or e-mail accounts for non-business use at any time.The information and cyber security program of [Minneapolis Kombucha]will engage a wide range of strategies,tactics and tools including ...Security packages verifying user sign-on to computers,log recordings,and password verifications ...anti-virus and anti-malware software to detect and prevent cyber-attacks,intrusions,and theft of digital records...Strengthen domain and network security, establish strong password policies,create a regular patching routine,and segment networks...Conduct once a year third-party vulnerability hacking tests to check for weaknesses in the system ...Online security software conducting periodic scans,virus checks,elimination of malware,Trojan horses,and attempts at hacking into the system ...Hidden naming convention for the wireless system ...Automatic backup on all files into a secured section of the cloud ...Documented policies on information security and IT-related issues such as password protocols...Dispensary agent training,awareness initiatives, and risk-generated alerts on time-sensitive threats ...Annually renewed dispensary agent acknowledgments on the use of the electronic systems within the”14 retail location. Part 3.Conclusion. Owner-operator as Flexible,Creative,and Compliant. Minneapolis Kombucha will consult each and every client as directed by law in order to protect X-C-01 the health,safety,and welfare of the City and citizenry of Hastings. I,Joshua R Bruns,exclusively founded,own,and operate Minneapolis Kombucha since June of 2023.Remaining flexible and creative have been the most prevalent and prevailing factors towards profitability.I no longer brew kombucha nor do I still sell wholesale fresh fruit:I built a commercial size dehydrator and preserve fruit for sale.This way there is far less wasted product,I maximize price per weight,and going to market stays simple.60 hour work weeks are the norm and they are immeasurably rewarding.Overcoming daily obstacles efficiently has been a recurring requirement. Completing cannabis management training,will “implement and maintain robust programs” standardized by OCM,strive to maintain product quality,environmental sustainability,strive for the highest standards in worker safety and satisfaction,“rigorously”enforce security standards,keep up to date with evolving security threats,provide training and updated training,update and maintain compliance to federal,state,county,and local regulations,and maintain a segregated,organized, transparent in revenue,job responsibilities,and all other operations.Detailed self assessments,third- party audits,proper financing for such endeavors,maintaining licenses and permits,insurance (liability,property,casualty,interruption).8 Understandably there are many individuals far qualified to manage the many aspects of this business.They will be hired,and as my ownership agreement stipulated,left with ownership. Obviously varying approaches will be considered throughout the business venture. Another notable strength this application has is the interested parties who are sold on a venture designed as an inclusive business,where around 40-45 individuals expressed deep interest in offering the labor they are experts in:website building,retail,law,tax,cultivation (3),and even general labor. Already,but after vetting,most all these parties inherently appear to be critical thinkers adaptable to many demands.If the office wishes and if the law is properly explicit these parties would be partial to involvement and I think only bolster potential. I have worked in a multitudes industries and found some success as a licensed real estate agent in Utah.Consistently regulated as well is the ready to serve food industry here in Minnesota,as I sampled and poured fresh juice,kombucha,sauces,and canned items at almost 20 farmers’markets in 2023.I have also legally sampled and gifted my homemade wine,again strictly following State regulations,however alcohol regulations proved too burdensome at the time for further pursuit.Now that I have a registered farm with the Dept.of Agriculture there may be an avenue towards selling glasses onsite,though I remain busy enough with this current venture! My experience with consumer goods is vast.Firstly I am an expert alpine skier with 6 years in mountain recreation sales and custom fittings,along with a technician in repair,maintenance,and outfitting,at the forefront of the industry in research and application.Just this spring I started a plant nursery and sell nearly every fruiting bush and tree,expanding into nut trees,grafting,and sprouting new varieties.In my orchard apricots,plums,currents,gooseberries,and Aronia berries are all some of my more pronounced jewels.For “controlled substances”as a professional water ski show performer I maintained and loaded the pyrotechnics in a show in Hassloch,Germany.I have furthermore worked in a vast number of industries and positions,wear many hats,and adapt daily. Joshua R Bruns Minneapolis Kombucha 952-223-7270 MinneapolisCooperative@gmail.com 1.MN Legislator.342 statute.revisor.mn.gov X-C-01 2.Focus.Cultivation Standard.Foundation of Cannabis Unified Standards 3.Asghar Ameer.Ultimate guide to quality control for cannabis producers.Grower IQ. 4.Focus.Cultivation Standard.Foundation of Cannabis Unified Standards 8.HB 3400.Task Force on Cannabis Environmental Best Practices.”Legislative Report an Recommendations. 11.MN Office of Cannabis Management.Submitted rules Package.03/21/2025 12.Oregon State Government.“Marijuana Waste Management.” 14.[NuMed]Dispensary Security Plan.[Numed] 15.GDI Insurance Agency,Inc.“Keep your marijuana dispensay safe during a robbery.” 16.Flowhup.4 tips for managing dispensary inventory 17.Flowhub.Clean up your cannabis inventory:a practical guide for dispensaries 18.Wartenberg,Ariani C.,et.al.“Cannabis and the Environment:What Science Tells Us and What we Still Need to Know. X-C-01 04/07/2025 Addendum #1 to Security Plan Window and Door Placement and Quality. General exterior construction and exterior building layout will largely remain unchanged on 215 Ramsey St.The windows will remain where they are currently located,as will the area segregated for doorways.New commercial grade doors and widows braces and coverings with the appropriate security upgrades are essential this business.These include electronic pin code computers with infiltration redundancies,reinforced frames,fortified door edges,security hinges,security hardware, strike plate locks,and new windows /panes altogether. The right style of hardware and installation techniques can be determined with the professional installation team. Doors and windows in particular with walls will be definitively upgraded,but their placement won’t change.All exterior windows or glass in 215 Ramsey will be either be replaced and/or appropriately reinforced.Industry options include film,laminated security glass,bullet-resistant glazing,or containment-grade (non-ballistic)poly-carbonate glazing shield panels,one such product marketed as ArmorPlast AP25.1 The latter with interior window (quick-release for fire code)bars would increase man hours and noise levels required to an unacceptable level.The same can be said for the both the window facing south on the southeast corner of the building and on the eastern side. Minneapolis Kombucha won’t be tearing any frame or bricks for new window or door placements. Instead the business will be aiming to build up and bolster and install a small army of strength reinforcements,according to fire code.The 3 doors in place are almost ideal. Misaligned,un-flush,sagging,or otherwise binding doors,malfunctioning hinges /closers, worn,damaged,or weatherstripped hardware,handles,or other materials,malfunctioning openers, foggy or damaged panels,corrosion,poor sealing,or otherwise poor construction or design should be checked for regularly,as detailed,and required by OCM and MN Law.2 Roof,Ceiling Access. A certified or otherwise qualified contractor can ensure construction designs are appropriate. Sensitive heat,energy,and vibration alarms that address these areas specifically are most ideal. Combined with durable materials it would be most difficult to enter through the siding or shingles softly enough.The cameras,motion detectors,and the internal backup energy system required by OCM add further assurances.Thoughtfully placed signs,security company stickers /notifications, neighborhood watch signs,or other psychological approaches,like design and quality materials and products,are some examples. Joshua R Bruns Minneapolis Kombucha 952-223-7270 1.Riot Glass.“Why Reinforcing Commercial Storefront Doors and Windows is so Important.” 2.Foreman,Wayne.“Common Commercial Door Problems and How to Fix Them.”CDF. X-C-01 Employee Training SOP (As it relates to Security Plans) Included in security are health and safety.A healthy and well trained employee is a safer employee.This business must comply with worker safety and health provisions under chapter 5205; MN statutes,Chapter 182;and any standard adopted by the Department of Labor and Industry related to MN statutes chapter 182. All workers to have an ID badge with a visual coding system indicating the activities that the worker may perform and which areas of the premises that the worker may access.Employment identification badges must always be visibly displayed on each worker's person when the worker is conducting activities on behalf of the cannabis business.A cannabis business must post signage,not less than 12 inches in height and not less than 12 inches in width at all points of access to areas containing cannabis stating "Do Not Enter -Access Limited to Authorized Employees Only"in lettering no smaller than one inch in height.” Employees will be trained not to give away,discount,sample,sell to a minor or visibly intoxicated person any cannabis product whatsoever.Being trained on all of these SOPs,employees will know to cease operation if any security or statewide monitoring system fails. Ensure [Minneapolis Kombucha]complies with all applicable federal Occupational Safety and Health Administration workplace safety laws and regulations (91-956)and Code of Federal Regulations,title 29.The premises must be equipped with a functioning carbon monoxide detection system under federal and state Right to Know regulations,provide each worker with information about hazardous materials with which the worker may come into contact on the premises;and provide each worker with information about the procedures for safely handling and operating equipment or tools. Joshua R Bruns will be the currently designated administrator for the statewide monitoring system and will train any and all employees as system users. Training. All employees or volunteers must receive annual training that applies to the role,authority,and responsibilities of the worker or volunteer,including SOPs required under part 9810.1100,subpart 2, item A,state and applicable federal cannabis laws,laws regarding data privacy and confidentiality,the proper use of security measures and controls that have been adopted by the cannabis business in compliance with part 9810.1500 and MN statutes,chapter 342,emergency response procedures,and recall procedures. Building and fire code compliance is a part of security and must be approved,maintained,tested,and checked regularly.The bathroom must be completely enclosed with a tight-fitting and self-closing door. “Utilizing Technology and Tools. Training employees in a cannabis dispensary requires the use of various technologies to ensure that staff are well-informed,compliant,and motivated.A comprehensive approach to training combines the following tools. Performance Dashboards. Some cannabis POS systems include performance dashboards and mobile analytics,allowing employees to track their metrics like average cart size and total units sold in real-time.This gamified approach creates a competitive and motivating environment where staff can compare their performance with peers. X-C-01 Learning Management Systems (LMS):LMS platforms offer structured training modules,quizzes, and certifications that cover essential topics like compliance,product knowledge,and customer service.They ensure that all employees receive consistent and comprehensive training. Compliance Tracking Software:Compliance tracking software is crucial in maintaining up-to-date employee training records that meet regulatory requirements.These systems help dispensaries manage and document compliance training,reducing the risk of regulatory issues. Video Tutorials and Webinars:Pre-recorded video tutorials and live webinars offer flexible training options,covering a wide range of topics from product knowledge to sales techniques and legal compliance.This dynamic learning experience is accessible to employees at their convenience. Using a combination of these technologies can create a comprehensive training program that prepares employees for various aspects of working in a cannabis dispensary.”9 Theft,Loss,and Diversion Prevention Detection of Diversion.[Minneapolis Kombucha]will have a manager on the premises at all times during hours of operation,or at any time,another person who is not a manager or owner is on site.In order to protect the premises for visitors,purchasers,and agents,[Minneapolis Kombucha]will operate under a set of specific,written procedures which will be presented to agents upon hire. Agents will be directed to pay close attention to the access points to the dispensary.Any door that is intended to serve as a barrier between the secured access areas of the dispensary will remain closed and locked at all times,except for the moment when an authorized individual is walking through it.Agents will only have access to the portions of the dispensary that relate to their function at work and this access can be scheduled. All [employees]will display a laminated or plastic-coated identification card issued by [Minneapolis Kombucha]at all times while engaging in [retail]activity.The identification card will include the company name and license number,the [employee’s]name,a random 10 digit alphanumeric id number containing at least 4 numbers and 4 letters that is exclusively assigned to that agent for identification purposes,and a color photograph of the agent that clearly shows the full front of the agent’s face and that is at least 1 inch in width and 1.5 inches in height...At least two registered agents or security guards will be on-site at all times during regular business hours to ensure that the dispensary has at least two persons present from opening to closing...The misrepresentation of usable cannabis as waste is the most common method of diversion.This can occur under the following conditions:Stealing containers used to store cannabis products;Recovering cannabis to be disposed of before it is made unusable and unrecognizable;Storing cannabis in loose-fitting clothing...Signs of internal theft or diversion include...An agent accessing an area not assigned to them;[a]n agent removing anything from a limited area without supervisor approval...Beginning each work shift, agents will store their personal belongings in their designated secure lockers,visibly wear their [Minneapolis Kombucha-issued]access key card,and start their shift.Storage lockers will be furnished and individually assigned to each agent with a unique electronic lock combination. Electronic locks eliminate the risk of duplicate keys and allow security personnel to override the lock with a master combination should there be evidence or detection of theft or diversion.Additional agent policies:[employees]will be directed to pay close attention to the access control points.Any door that is intended to serve as a barrier between areas with different restrictions will remain closed and locked at all times.[Employees]will only have access to the portions of the premises that relate to their function at work.Only the manager will have access to the Vault.[Employees]will have training in accordance with the personnel policies and procedures,and such training will be conducted by a knowledgeable,qualified [employee].[Minneapolis Kombucha]will immediately update system agent information and status.If an agent is no longer employed by [Minneapolis Kombucha]the Security Manager will remove access and permissions to the dispensary.The agent-in-charge will notify X-C-01 OCM...When an agent is terminated or suspended:[Minneapolis Kombucha]will ensure all passwords,key locks,and combinations of a terminated agent are changed upon termination.The implementation of additional security measures,such as consultation with a threat assessment professional,may be used when an [employee]of concern is terminated...[Minneapolis Kombucha] will review with the agent the consequences of their actions as well as other fraudulent activity which could occur after the termination or during the suspension.14 “Record-Keeping and Documentation Maintaining accurate records of all training activities is crucial for compliance and quality control.Documentation should include details of the training content,dates,and employee participation.This not only helps in demonstrating compliance during inspections but also provides a reference point for future training needs and improvements.”9 Creating a Culture of Honesty [Minneapolis Kombucha]strives to create a “Culture of Honesty”and has an open communication policy.It is the responsibility of all [employees]to report the theft or dishonest behavior to management.[Minneapolis Kombucha]understands the need to cultivate a safe work environment.[Minneapolis Kombucha]will not tolerate behavior that affects the safety of agents or other individuals.[Minneapolis Kombucha]will immediately dismiss any agent who has...[e]ngaged in unsafe practices onsite.[v]iolated any safety standard and/or any other rule,policy or procedure... [e]ngaged in misconduct toward a visitor,contractor,vendor,manager or coworker including but not limited to...[threatening,intimidation,coercion,fighting,foul language,engaging]in any action that could result in injury or damage to persons or property...[s]peaking negatively about a coworker to a visitor,vendor or contractor...Violated the Alcohol and Drug Abuse Policy or a criminal statute... Destroyed,damaged or misused company property or assets...Engaged in disorderly or illegal conduct onsite...Harassed another person,made racist or sexually offensive remarks,physically touched or made inappropriate suggestions to any individual in the course of employment or while on company premises....[was]insubordinate,refused to follow work-related directions from a manager or supervisor,or neglected or demonstrated incompetence in the performance of job responsibilities...Attempted misappropriation of cannabis or cash.[Minneapolis Kombucha]will report any such incident to the Department and local law enforcement officials immediately.Any removal from the premises of concealed monies,merchandise,or property belonging to [Minneapolis Kombucha],other [employees]or other persons will be grounds for dismissal...[as would failure]to report the dishonesty of another when the agent has a reasonable knowledge of such dishonesty,[or]failed to record a sale,failed to properly account for or control funds,made a false statement to a manager,or engaged in a fraudulent act...Discounted cannabis... Entered,or caused to be entered,information which the agent knows to be false,or reasonably should have known to be false,on any company document,report,form or record...Accepted gratuities from vendors,contractors,visitors,or other agents...Has been insubordinate,refused to follow work-related directions from a manager or supervisor...Used company property or assets for personal reasons without prior approval or transacted personal business during working hours...Acted contrary to the best interests of [Minneapolis Kombucha]for example,diverted sales or divulged proprietary or business information or violated of the Conflict of Interest Policy...Failed to follow company policy resulting in the loss of monies,merchandise,or other assets,or violated a company policy or procedure.14 Hiring Policies/Background Checks. [Minneapolis Kombucha]will not hire any agent or contractor who is likely to engage in illegal X-C-01 distribution of cannabis.In addition to questions during the hiring process,[Minneapolis Kombucha] will conduct criminal background checks and an evaluation of work history.[Minneapolis Kombucha] will send the information of all prospective agents to [OCM]for the purposes of a background check. [Minneapolis Kombucha]will conduct a criminal history background check on any prospective [employee],principal,director,board member,or owner prior to hiring,appointing,or permitting investment from that individual...[Minneapolis Kombucha]will coordinate with [OCM and]conduct a criminal history record check of the prospective principal officers,board members,and agents of [Minneapolis Kombucha].[Minneapolis Kombucha has already enlisted the services of a professional background check agency [(Veritable Screening)]...which [uses]advanced search methodologies...to ensure that management will have all the information necessary before deciding to employ an individual.[Minneapolis Kombucha]will keep records of the results of the criminal history background checks and make the confirmation of criminal history background checks available for inspection...All persons employed by [Minneapolis Kombucha]and all volunteers will be at least 21 years of age.14 Employee Guide. An employee guide is not limited to including...An “employment at will”disclaimer ...An anti- harassment policy ...An internal grievance procedure ...Equal Employment Opportunity (EEO) ...Employee benefits ...Paid time off (vacation,personal days,sick leave)...Unpaid leaves of absence ...Americans with Disabilities Act (ADA)(for employers with more than 15 employees)...Jury duty, military leave ...Hours of work ...Introductory/probationary period ...Legally mandated language concerning pay deductions ...Proper E-mail/Internet usage ...Professionalism/dress code ...Drugs in the workplace ...Social media policy...daily opening and closing procedures;security,customer admittance,and customer traffic-control procedures;ordering and point of sale procedures;delivery service procedures (if the licensee delivers to customers);product inventory intake procedures;product return and disposal procedures;emergency procedures;and an explanation of how workers will monitor for and prevent sales to customers where there is a risk to health or safety,underage or illegal sales of cannabis products,or any other criminal activity within the licensed premises...Product types; Serving size;Onset and duration of effects,if applicable;Method of administration;Warnings for use; and...Tips for secure storage and proper disposal;Customer privacy and confidentiality requirements... History of cannabis use,prohibition,legalization;Ensuring safe use of cannabis,including,but not limited to...Cannabis physical effects on the human body;Advice for recognizing signs of impairment;Appropriate responses in the event of overconsumption;Safer storage of cannabis products;Explanation of required text on cannabis product labeling;Risks of cannabis use and over- use,including cannabis use disorderd...dependency;Risks of operating any vehicle (including watercraft)under the influence;Explanation of consumer education materials;and Overview of marketing and advertising prohibitions;Prevention of sales to individuals under twenty-one,including, but not limited to...How to check customer photo identification;Spotting fraudulent identification;and Provisions for safely confiscating fraudulent identification;Security and surveillance of licensed premises;Emergency procedures;Compliance with,and operation of,inventory tracking systems; Relevant state and federal laws or regulations;Permitted investigations or inspections of the premises; License suspension,revocation and renewal;Civil and criminal penalties;Cannabis product waste disposal;and Practices for maintaining customer privacy and confidentiality...10 “Licensees must ensure that all workers have access to hand washing and toilet facilities on the licensed premises and must maintain such facilities in clean and sanitary condition,maintaining records of regular cleaning and sanitizing of such facilities.All personnel shall handle cannabis products in a sanitary manner,maintain adequate personal cleanliness,and wash and sanitize hands thoroughly in an adequate hand-washing area before starting work,after each visit to a restroom,after X-C-01 handling contaminated material,eating,or at any other time when hands may have become soiled or contaminated...[Employees]must clearly designate the price of all items for sale. Licensees are required to clearly communicate the price of all items to customers, whether provided in-person,online or over the phone...[and]must post or provide consumer education materials to be available to consumers...[and]must provide an invoice to the customer including company name,contents,price,and any other information required by OCM.”Employees will be trained to ensure that “customers cannot have direct access to cannabis products while shopping unless inspecting samples with the assistance of authorized dispensary staff.Products may be displayed to customers only if locked behind a counter or other barrier.Licensees may utilize product displays or other branded elements to advertise the product within such locked counters or barriers.Employees must refuse to sell cannabis products to a customer if they believe the sale would endanger the health or safety of the customer...would create a risk of diversion...[or]would be to an individual who is under twenty-one years of age...”10 Staffing. “Licensees must designate an Employee in Charge who is twenty-one (21)years of age or older, responsible for managing the core day-to-day function of the dispensary.This is the person responsible for submitting required reports and notifications to the Office.An individual cannot be the Employee in Charge of more than one dispensary at a time.The Employee in Charge must maintain the dispensary’s staffing plan and update the plan within five business days of any change in an individual’s employment status.The staffing plan should,at minimum,include the name,contact information,and age of all workers involved in activities related to the sale of cannabis products. A licensee cannot hire anyone under the age of eighteen (18)and only workers who are at least twenty- one years of age can have direct interactions with customers inside the dispensary,transport cannabis products in any way,or be involved in any delivery operations.Workers that do not fulfill such customer-facing roles must be at least eighteen years of age.”10 Purchaser Diversion Awareness Dispensaries can prevent cannabis diversion which may occur after the sale.It is in the best interest of [Minneapolis Kombucha]employees to ensure purchasers do not abuse access to cannabis.In order to dispense adult-use cannabis,[Minneapolis Kombucha employees]and the Security agent or security guard will verify the age and all necessary documentation of each purchaser to ensure the purchaser is not under the age of 21 years.Training on the prohibition of sales to minors will cover all relevant [Minnesota]laws and rules.Government-issued identification will be verified at the Counter using an identification-authentication system,which not only checks the individual’s age but also checks the individual against lists and alerts for fraud and excessive purchases.[A]n acceptable form of ID will be limited to a state-issued driver’s license,military ID,or passport,[or as otherwise noted in MN law.].Agents will receive annual training on how to check identification and common mistakes made in verification.[Employees]will exercise professional judgment to determine whether to dispense cannabis to a purchaser if they suspect that dispensing any cannabis may have negative health or safety consequences for the purchaser or the public. [Minneapolis Kombucha]will not dispense adult-use cannabis to any person who is not 21 years of age or older.[Minneapolis Kombucha]will never distribute free samples for promotional purposes outside of the premises.[Employees]will adhere to the [sales]limits [as designated by MN Law].14 Safety and Security Training for Agents [Minneapolis Kombucha]will ensure the health and safety of agents and contractors by complying with and training agents on protocols that implement established health and safety laws, X-C-01 including OSHA standards.The safety plan will include procedures for responding to scenarios that impact security and safety,including severe weather,fire,natural disasters,medical emergencies,and unauthorized intrusions.Formal training will occur within 30 days of new hire start-date,annually thereafter,and will be accompanied by scheduled drills throughout the year.Interested [employees] and all Managers will receive CPR and First Aid certification.The Security Manager will train agents on security measures for theft prevention;emergency response;use of force;protection and preservation of a crime scene;and access-controls for protected areas of a facility.These measures how to use panic buttons and duress PIN codes,along with any other safety and security equipment available to agents.Supervisors will be trained on managing emergency responses.Training is designed not only for compliance but to promote high engagement among participants,improving knowledge retention and response under stress.Hands-on training will include live scenarios where agents actively participate.Classroom training will require satisfactory scores on exams to receive credit.Fire evacuation procedures will include responding to the alarm and notifying the fire department;identifying an evacuation path before approaching fire;discharging the fire extinguisher using the PASS technique (Pull,Aim,Squeeze,Sweep);and evacuating immediately if fire extinguisher is empty or fire blazes too intensely. “Practical,Hands-On Training. While technology offers many benefits,practical,hands-on training remains essential in the cannabis industry.Employees need to be familiar with the products they are selling,which can be achieved through live demonstrations and,where legal,product sampling.Additionally,it’s important to address workplace safety as part of this hands-on approach.Consider integrating workplace violence training programs to ensure that your employees are not only knowledgeable about the products but are also prepared to handle any challenging situations that may arise.This type of experiential learning helps employees gain a deeper understanding of the products and how to communicate their benefits to customers effectively while maintaining a safe and secure environment.”9 “Regular Training Updates. The cannabis industry is constantly evolving,with new products,regulations,and best practices emerging regularly.To keep pace with these changes,dispensaries must provide regular training updates to their employees.This could involve periodic refresher courses,updates on new product lines,or changes in state regulations.Keeping the training program dynamic ensures that employees are always well-informed and able to adapt to industry shifts.”9 “Daily Pre-Shift Meetings. Short,focused meetings before each shift can reinforce key training points and prepare employees for the day’s tasks.These meetings are an opportunity to discuss daily objectives,address any questions,and ensure that everyone is aligned with the dispensary’s goals.By making these meetings a regular part of the routine,dispensaries can keep training top of mind and continuously reinforce important information.”9 X-C-01 “Follow-Up and Evaluation To determine the success of a training program,it is essential to monitor employee performance through assessments,quizzes,and other evaluation methods.These tools provide insights into how well employees have absorbed the training material and where there may be gaps in their knowledge. Regular evaluations allow dispensaries to identify areas for improvement and adjust the training program as needed to ensure it remains effective.”9 Emergency Planning How companies handle significant events can have a long-term effect on their business operations.It is imperative that agents prepare for unfavorable events in order to avoid panic,handle a situation optimally,and resume work [at an appropriate time].By implementing training for stressful events,agents can act dutifully,and more confidently should the scenario occur.[Minneapolis Kombucha]will prepare for,protect against,and handle any crises that affect the security or operation of the dispensary in the event of a fire,flood,or other natural disaster,or other situations of local, state,or national emergency.At least two emergency preparedness drills will be conducted every calendar year.In case of an emergency,it will be the responsibility of the agent-in-charge to evaluate an emergency,see that appropriate action is taken,determine whether outside support is needed,and summon support,if necessary.Management will also ensure there is a valid phone number on file for all [employees],managers,volunteers,third-party contractors who work on site,and the owner. [Minneapolis Kombucha]will have emergency supplies ready in case of an emergency.[Minneapolis Kombucha]will actively educate agents on a standard response safety protocol system,which will be outlined in the agent manual,and use it to enable a rapid response during unforeseen events.By utilizing the standard response safety protocol system,[Minneapolis Kombucha]will allow for a more predictable and uniform series of actions as an event unfolds.[Minneapolis Kombucha]will standardize the protocol vocabulary so all [employees]will understand the response and status of the event,providing continuity of expectations and actions.The standard response safety protocols will be understood and rehearsed by all agents and coordinated with local emergency responders if possible.14 Evacuation Protocol In case of fire,industrial accident,bomb threat or other emergency,an evacuation protocol will be used to move agents from the facility to an external rallying point.Each area of the facility will have pre-determined evacuation routes clearly posted in all work areas,and agents will be briefed on these routes and periodically rehearse them.Upon the initiation of the evacuation protocol,all agents will immediately cease their work activity and assist visitors to the pre-determined evacuation rally site.[Employees]assigned a safety function should be the last to exit the building whenever possible. One agent will be assigned to take the First Aid Kit as they leave the building.A designated agent will notify the Police and Fire Department by calling 911.All agents will remain at the pre- determined rallying site until all agents have arrived ...If a fire cannot be easily and safely extinguished by the agents discovering it,immediately been accounted for. Additional steps to be taken in the event of a fire...notify all persons present of the fire...Direct all persons present to evacuate the building using the nearest safe exit...If possible,turn off electrical equipment and close doors against the fire...Additional steps to be taken in the event of a bomb threat include ...Reinforce that bomb threats will be taken seriously...An [employee]receiving a bomb threat will notify their supervisor and/or a member of the senior management immediately.14 Severe Weather Shelter Protocol. During severe weather events such as tornadoes or blizzards,a shelter protocol will be X-C-01 initiated for group and self-protection.The shelter protocol may be necessary to protect agents and visitors during severe weather events where seeking hardened protection is prudent.Upon the initiation of shelter protocol,all agents will cease all work activity and assist purchasers and visitors to pre-determined hardened shelter and await further instructions.All agents will remain at the pre-determined rallying site until all agents have been accounted for.14 Workplace Violence [Minneapolis Kombucha]is committed to the safety and health of its agents,purchasers,and the local community.[Minneapolis Kombucha]will refuse to tolerate any form of violence in the workplace and will make every effort to prevent violent incidents from occurring by implementing a Workplace Violence Prevention Program (WVPP).All managers and agents are responsible for implementing and maintaining our WVPP.[Minneapolis Kombucha]will require prompt and accurate reporting of all violent incidents whether a physical injury has occurred or not.[Minneapolis Kombucha]will prohibit discrimination against victims of workplace violence.All agents,including managers,are responsible and accountable for using safe work practices,for following all directives, policies,and procedures,and for assisting in maintaining a safe and secure work environment. Training agents using online resources and onsite drills ensures agents are well-versed in the policies that will best protect them during an incident of workplace violence.Training topics include:examples of workplace violence;company policies;safe confrontation and communication;crisis reporting;and mediation training for management to encourage healthy communication and conflict resolution among agents.[Minneapolis Kombucha]will provide resources for agents to seek counseling for issues such as anger management.14 [Minneapolis Kombucha]will not tolerate unsafe non-physical behavior such as stalking, harassment,or other attempts at intimidation by agents and contractors or by patients and caregivers, who may intentionally or unintentionally violate [Minneapolis Kombucha]Zero-Tolerance Policy for acts of workplace violence or harassment.If another [employee],visitor,vendor,or a guest becomes aggressive or violent,a manager will be notified immediately.Management will be trained by a security consultant on how to deal with workplace violence.Violence initiated by an agent may result in termination.14 Active Threat Nearby:Lockout Protocol If an active threat is witnessed or reported within reasonable proximity of the facility,a lockout protocol will be initiated to safeguard everyone within the facility.The lockout protocol is designed to prevent entry into the facility by unknown,suspicious,or dangerous individuals,and to maintain accountability and security of all agents within the facility.All exterior doors,gates,and windows will be locked and secured.No one will be allowed into or out of the facility until the situation that caused the lockout is resolved. Active Threat Inside:Lockdown Protocol If an active threat is identified inside the facility,a lockdown protocol will be initiated to safeguard everyone.The lockdown protocol is used to secure individual rooms and to keep agents safely in place.Upon the initiation of a lockdown,all agents will assist visitors and purchasers to rapidly move to predetermined lockable and secured sites within the facility.Only law enforcement is trained to react and confront an active shooter situation.All individuals will remain secured within the locked sites until personally contacted by law enforcement or senior management,indicating all is clear and safe.At the conclusion of a lockdown protocol,a full accountability of agents and visitors will be determined. X-C-01 Armed Robbery Response Training [Minneapolis Kombucha]will emphasize agent training and procedural documentation on how to respond to an armed robbery.To help prevent escalation,[Minneapolis Kombucha]will install duress alarms to convey that the user is being forced to turn off the alarm system and hold-up alarms to communicate a robbery-in-progress.Additionally,having an easy to follow post-robbery protocol after an incident will greatly reduce stress and decrease the time to resuming business.All agents will receive training concerning procedures that will be implemented in the event of an attempted robbery. The primary objectives of these procedures will be the protection of human life.Senior management will be primarily responsible for implementing these procedures and for directing others during an event.[Minneapolis Kombucha]will be using an internet-based “Armed Robbery Response Training Program”which educates and trains agents in effectively dealing with an armed robbery if one should occur.[Minneapolis Kombucha]will educate and train agents in effectively dealing with an armed robbery if one should occur.[Minneapolis Kombucha]feels that educating agents on best practices during an armed robbery will minimize the risk of injury during a robbery.Agents will acquire the knowledge,procedures &confidence to respond to a robbery safely &effectively.In addition,the program is designed to assist in getting back to normal business operations [in a reasonable amount of time]in the event of an armed robbery. Other standard general employee training SOPs include categories such as the following. Respectable Workplace Practices Minneapolis Kombucha is committed to providing a safe,fair,and respectful work environment.Minneapolis Kombucha prohibits discrimination or harassment against anyone based on race,color,religion,national or ethnic origin,ancestry,sex,gender,sexual orientation,marital status, genetic information,age,disability,military and veteran status or any other characteristic protected by law.How to Comply...Treat employees,applicants,customers,suppliers,contractors,anyone you interact with or anyone providing services to Minneapolis Kombucha with fairness and respect. ...Create and foster a work environment free from discrimination,bullying and harassment...Do not refuse to work or cooperate with others because of protected characteristics...Never make an unwelcome sexual advance to anyone you interact with. Hygiene Practices. Minneapolis Kombucha is committed to safeguarding the health and safety of all employees. All Minneapolis Kombucha employees must comply with the following personal hygiene policy...All employees will be required to frequently wash hands with soap and warm water...All employees shall follow proper cough and sneeze etiquette.How to Comply...Wash hands with soap and water for at least 20 seconds as frequently as possible,or use hand sanitizer.Employees must wash hands,at a minimum...At the beginning of each shift...After using the restroom...After breaks...After sneezing, coughing,or blowing nose...When hands are visibly soiled...Prior to leaving work...Employees are responsible for replenishing or letting the person-in-charge know when handwashing supplies or hand sanitizer are low.Cough &Sneeze Etiquette ...Minneapolis Kombucha is responsible for providing tissues,if feasible to help stop the spread of germ employees should...Cover mouth and nose with a tissue when coughing or sneezing Throw used tissues in the trash...If don’t have a tissue,cough or sneeze into elbow,not hand. Professionalism (code of conduct). Employees are expected to be present during scheduled working hours.That includes being X-C-01 reachable and engaged during scheduled hours if working remotely.Contact your manager to let them know about any emergency situations that arise as soon as possible.Unscheduled absences due to acute medical emergencies,accidents or similarly serious circumstances won’t be penalized,but otherwise,we’d like to be informed when you won’t be available or coming in.Dress code...Clothes and overall personal hygiene should be clean.We respect and permit clothes,hair and accessories related to religion,race,ethnicity or disability.Beyond the above guidelines,we don’t have specific requirements for what you should wear.Cell phone and technology use...When using digital technology and the internet at Minneapolis Kombucha,you should follow these guidelines ...Don’t use our internet connection to upload or download obscene,offensive or illegal material (including pirated media or software)...Never send confidential data to an unknown recipient...Avoid dangerous websites that can compromise the company’s cybersecurity...Don’t use our connection for illegal or unauthorized activities,including hacking or fraud...Don’t invade others’privacy. Cell phones should be used to benefit your work,such as with business calls and productivity apps. Avoid using your phone for games or texting,and keep personal calls brief and private.Never use your phone while driving a company vehicle. Corporate email can be used for work purposes without restriction within the above safety guidelines about the internet.Personal use that avoids spamming or the sending of confidential information is permitted...Never use corporate email to send insulting or discriminatory messages or to sign up for disreputable or illegal websites.If signing up for a competitor’s services,you should get authorization from your manager first.Be vigilant about phishing messages and malware,and consult our IT team if you have any doubts about a message you’ve received...Social media use should be disciplined, without distracting from your work-related tasks,and you should always make clear that your personal accounts and views do not represent [company name]’s.Avoid sharing confidential information and defamatory,offensive or derogatory content. Confidentiality. Minneapolis Kombucha works hard to protect private information about employees,clients or partners.This applies to information such as employee records,unpublished financials,official documents,customer data and partner or vendor data...We restrict and monitor access to such data and maintain secure networks.Your part in keeping this information secure consists of: •Locking and securing confidential files...Using secure devices only for viewing and storing confidential data...Avoiding the removal of confidential files from [company name]’s premises unless necessary...Never disclosing confidential information outside the company...Shredding confidential documents that are no longer needed.Breaching confidentiality rules for personal profit is grounds for immediate termination.Unintentional breaches may lead to disciplinary action,and repeated breaches even when unintentional may eventually lead to termination. Substance abuse. Minneapolis Kombucha maintains a smoke-free work environment for the health of all our employees.Smoking is not permitted by any employees whatsoever.It is not permitted anywhere on the premises.Minneapolis Kombucha also maintains a drug-free work environment and prohibits the use,distribution or sale of illegal substances of any kind on company property.Legal but intoxicating substances such as alcohol and marijuana are also prohibited during working hours...Inform your manager if you feel any prescription medication you are currently taking may affect you.You may be subject to disciplinary action if your manager suspects substance abuse. Conflicts of Interest. A conflict of interest occurs when an employee’s personal goals are no longer in line with their X-C-01 responsibilities.They can be a serious issue that,aside from leading to termination of employment when discovered,can also lead to serious legal jeopardy,depending on the circumstances. It’s up to all of us to be vigilant about circumstances that can lead to conflicts of interest for ourselves, close colleagues and direct reports.Make sure you’re always acting in accordance with ethical business practices and in the best interests of the company. Engage and empower workers through their union and pursue the cooperative nature of the attached business agreement.Employ Staffing and Training Plan offered by Cannabis Business Consulting. Maintain records of compliance.Regularly complete checklist including all applicable requirements,including but not limited to the following “short summary of key employer responsibilities:”“comply with standards,rules and regulations issued under the OSHA Act...Examine workplace conditions to make sure they conform to applicable OSHA standards...employees have safe tools and equipment and properly maintain this equipment...warn employees of potential hazards... operating procedures...so that employees follow safety and health requirements ...safety training ...written hazard communication program ...medical examinations ...post...the OSHA poster ... report...all work-related fatalities [/injuries]...all work-related inpatient hospitalizations ...keep records of work-related injuries ...provide...access to the log of work-related injuries...Provide access to employee medical records...provide...compliance officer...names...who may...accompany...during an inspection...not discriminate against employees...post OSHA citations...correct cited violations... adopts a safety and health program... Use compliance directives offered by OSHA.Follow and maintain compliance and follow section on Employees in this application.Maintain comprehensive insurance:liability,property, casually,interruption. Pay far above minimum wage,overtime rates,adhere to worker contracts,invite the union, comply with child labor laws,post equal opportunity employer poster,prohibit discrimination,sexual harassment,maintain worker contracts specifying wages,job titles,terms for dismissal,dispute, maximum hours,etc.Maintain worker policy manual,distribute it.“The manual should define comply policies,procedures,benefits and expectations to support worker success.The policy manual shall be consistent with employment and safety laws and must be reviewed and updated as required by changes in regulations and employment law.”1 The MN Department of Labor offers an Employer’s Guide to Employment Law Issues in Minnesota2 ;the Department of Public Safety offers a Certificate of compliance with Minnesota Worker’s Compensation;MNOSHA has compliance checks for standards and regulations and record keeping standards that will be used. Plans to avoid sales and/or purchase to/from unlicensed cannabis businesses. Communicate with OCM to determine license holders,refer to rules and regulations,steps and procedures for determining license holders.Maintain records of compliance for each sale.Employ wholesale management company,like Apex Trading or Leaf Trade.Check the OCM database -check with OCM!Record credentials of business,representative.Receive confirmation from OCM that business is in fact licensed and the office confirmed approaching sale,representative who will be transporting,batch/purchase ID confirmation number,transport license confirmation,badge number, license number,and any other security redundancies required by OCM. Train all employees in proper means of identifying licensed cannabis businesses. I attest that the business will comply with the applicable operation requirements for the license being sought in the attachment worksheet. X-C-01 Business to business sales is expected to be exclusively limited to vetted representatives of other businesses,but still required are proper verification techniques,delivery requirements,statewide tracking,employee training,maintaining records of compliance will all ensuring legal sales. Plans to (i)avoid sales to individuals under 21 years of age. Employ Security personnel to check IDs,verbally verify age,and refuse sales to any suspected of being underage. Train all employees in proper means of identifying the age (or lack thereof)of individuals. Use strict packaging not to attract underage individuals,conspicuous labels noting underage law.Ensure advertisements have proper labels,warnings;follow 342.62,342.63,342.64;maintain compliance records Maintain advertisements as those that don’t contain false statements,unverified claims,promote over-consumption,depict underage persons,include images or slogans attractive or targeting underage individuals;that are not unsolicited,with age affirmations when required.Ensure only two outdoor signs.3 Maintain record of compliance for all contents required on label to ensure proper use,storage, origin,profile,warnings,visual clues,poison control contact,max dose,any other statements required by OCM,etc.Post these in proper areas,other conspicuous signs on entry doors. Reference and implement “Policies to Limit the Availability or Accessibility of Cannabis for Youth”,a working document4 Train all employees on state mandates;offer incentives for attention to detail;use common sense -don’t overload employees;allow them to see the details.Conduct age verification checks with individuals under 17 to proof operation.Maintain records of compliance checks and updates.Employ updated biometric security alerts. Record age verification:age verification required before initiating any sale or viewing any product.Valid Driver’s License,valid Id,valid passport,or valid instructional permit required for verification of 21 years of age. Notices maintained and posted;maintain verification of records (recalls,intoxicated driving, age limitations,hours of operation conforming to city requirements). Retail specific and exclusive area must be separated by adjacent/joining room or extra vestibule barrier where conspicuously posted is a age verification notice. Proper sealed Packaging,signs reminding consumers of requirements for discretion,enforcing strictly employee consumption,train employees in these regards,ensure building facade remains legal, enforcing non-consumption on-site,and maintaining compliance checklist,updates,assessments, trials,and reminders are vital. “Ensure Legal Compliance. [Minneapolis Kombucha]must comply with local [and]state...laws regarding [cannabis]use. Compliance can be complicated,as laws vary by location and often conflict.So,to create a robust workplace policy,know your state and local laws...Ensure compliance with applicable laws and best practices by regularly reviewing and updating your policies to ensure.Stay informed about changes in legislation,court rulings,and emerging research to adapt policies accordingly.Involve legal counsel and industry experts to navigate the complex legal and ethical considerations related to marijuana use in the workplace.”5 “Clearly Define and Communicate Expectations. Transparency and accountability lay the foundation for a successful and harmonious workplace. To ensure a safe and productive work environment...Establish clear expectations regarding [cannabis] X-C-01 use.Communicate the company's stance on [cannabis]consumption during work hours,on company premises,and in safety-sensitive positions.Emphasize that impairment at work,whether caused by [cannabis]or any other substance,is strictly prohibited.Reinforce the importance of adhering to these guidelines to protect all employees'well-being and maintain high-performance standards.”5 Reporting –Agent Instructions. It is the responsibility of every [employee]who witnesses or suspects criminal activity at the dispensary to report it immediately to the agent-in-charge or the authorities [or Minneapolis Kombucha]immediately upon discovery,will report all criminal activity occurring on the premises to the local Police and the Department within 24 hours of the discovery of the following situations...A significant discrepancy in its inventory,or a difference in actual inventory compared to records... Suspected diversion,theft,loss,or any other criminal activity pertaining to the operations of the dispensary,including by an [employee]...The loss or unauthorized alteration of records related to Adult Use Cannabis or dispensary agents...Any suspicious act involving the sale,distribution, manufacturing,or production of cannabis by any person on the premises...Unauthorized destruction of cannabis products by any person...Any other breach in security.[Minneapolis Kombucha]will also provide written notice of the criminal activity to the local police and the Department after the discovery of the activity.This written report will detail the following...Date and time of the discovery of the occurrence...The circumstances of the criminal activity...An accurate inventory of the quantity and brand names of the cannabis,cannabis products or other items diverted,stolen,lost,destroyed,or damaged...Confirmation that the city police department was notified...Measures being taken to prevent further criminal activity [Minneapolis Kombucha]will provide the local Police Department with the current name and telephone number(s)of at least one 24-hour on-call agent to address and resolve complaints and to respond to emergency operating problems or concerns associated with the [retail location].The [retail location]will maintain and make available all documentation related to an occurrence that is reportable and will cooperate with any law enforcement investigations or directives from the department.[Records will be retained and made available upon request by OCM.]Given the internalized,secretive nature of agent theft,most companies struggle to detect fraud and conduct an agent theft investigation.Therefore,[Minneapolis Kombucha]will establish a...free [and antonymous] internal agent theft tip [line of communication free from]...fear of retribution.14 “Implement Drug Testing Policies. According to a National Institute on Drug Abuse study,workers who tested positive for [cannabis]had 55%more workplace accidents and 85%more injuries than those who tested negative.Therefore, [Minneapolis Kombucha considers it]crucial to have stricter policies to ensure that employees are not impaired while performing their jobs.[Minneapolis Kombucha]can institute drug testing policies in these situations to detect marijuana use among employees.Regular drug screenings,including pre- employment,random,and post-incident testing,can help identify potential impairment-related issues.However,it is essential to balance ensuring safety and respecting employee privacy. [Minneapolis Kombucha will]communicate their drug testing policies to all employees and ensure the process is fair and non-discriminatory.These tests should be conducted professionally and with respect for the employees'privacy.”5 “Focus on Impairment,Not Use. Unlike alcohol,[cannabis]can be detected in a person's system long after impairment. Therefore,instead of solely focusing on [cannabis]use,shift the focus to impairment in the workplace.Implement policies that prohibit employees from being impaired by any substance while on X-C-01 duty,regardless of whether it is legal or prescribed.Encourage employees to report any concerns about impaired colleagues and provide clear guidelines for addressing these situations.”5 “Educate Your Employees on Cannabis Use. Empowering your employees with knowledge is a pivotal step toward effectively managing [cannabis]use in the workplace.Conduct regular training sessions that cover the potential consequences of marijuana impairment on job performance and safety.Offer resources on the responsible use of [cannabis]and its potential impact on productivity.Also,invest in workplace wellness initiatives that address overall employee health and well-being.Offer programs encouraging a healthy lifestyle,stress management,and work-life balance.Well-informed employees are more likely to make responsible decisions,creating a safer and more productive work environment.”5 “Train Managers and Supervisors. Training managers and supervisors are essential for effectively managing cannabis use in the workplace.These individuals are crucial in implementing policies,ensuring employee safety,and addressing sensitive issues.Training should focus on:Raising awareness about the impact of [cannabis]use...Teaching managers and supervisors to identify signs of impairment...Guidance on handling sensitive conversations...Consistency in enforcing policies...Promoting support through Employee Assistance Programs...Managers and supervisors should also be trained on legal considerations to ensure compliance with local laws.By equipping them with the necessary knowledge and skills,[Minneapolis Kombucha will]create a safe and productive work environment.”5 Joshua R Bruns Minneapolis Kombucha 952-223-7270 MinneapolisCooperative@gmail.com 1.Focus.Cultivation Standards.Foundation of Cannabis Unified Standards. 2.MN Department of Labor Employer’s Guide to Employment Law Issues in Minnesota 3.MN Legislator.342.64 Advertisment.Revisor.mn.gov 4.CT Legislator.Policies to Limit the Availability or Accessibility of Cannabis for Youth. Portal.ct.gov 5.Allow.“Week and the Workplace:9 Policies and Best Practices for Employers” 9.White,Jim.Cannabis Employee Training -Best Practices for 2025.Cannaspire. 10.NY OCM.“Guidance for Adult-Use Retail Dispensaries”. 14.[NuMed]Dispensary Security Plan.[Numed] X-C-01 X-C-01 /857 X.'\ City of Hastings Community Development Department Land Use Application Address or PID of Property:215 Ramsey St.Hastings,MN 55033 Applicant Name:Joshua R Bruns.Minneapolis Kombucha Address:3337 47th Ave.S Minneapolis,MN 55406 Phone:952-223-7270 Fax: Property Owner:Surrey Group LLC Address:6077 Montebello Way W Florence,AZ 85132 Phone:651-248-6784 Fax: Emai|:Austin@ApexGathering.comEmail:MinneapolisCooperative@gmail.com Description of Request:PIMM SMrw Descnption 0«ReouM Ak now Mwjks <Ma«Mncy twtwMn Dakota Count,OB md g«n«rai consuMnt TM >•a aunmary Thu apptication •m raQartW »a speoai use permit tor a cannabis retail registration with the City of Hastings.Minnesota The State license and City registration sought are detailed and governed by Hastings City Code Chapter 30.Chapter 117,Chapter 155,MN Statute 342.the MN Office of Cannabis Management (OCM).and the State of MN The applicant's business.Minneapolis Kombucha If requesting site plan review of multi-family units (three or more attached),are the units intended to be for sale or rental units? Check Applicable Line(s)Please Note:All Rezone Final Plat Variance Vacation House Move Prelim Plat Site Plan $500 $600 $300 $500 $500 $500 +S5,000 escrow $500 +S 5,000 escrow ees and Escrows are due at time of application. Minor Subdivision $500 (X>Special Use Permit $500 Comp Plan Amend.$500 Lot Split/Lot Line Adj.$75 Annexation $500 +85,000 escrow EAW $500 +$5,000 escrow Interim Use Permit $500 Total Amount Due:$500 00 Make checks payable to City of Hastings. Most credit cards accepted,excluding escrow payments. Please ensure that all copies of required documents are attached SignatureApplicantSignature 04-01-2025 Date Date Joshua R Bruns,Minneapolis Komucha,Operator Baltes' Applicant Name and Title -Please Print Owner Name -Please Print OFFICIAL USE ONLY File #Rec'd By:Date Rec'd: Fee Paid:Receipt #App.Complete City Council Memorandum To:Mayor Fasbender and City Council From:John Hinzman, Community Development Director Date:May 5, 2025 Item:Resolution: Special Use Permit –Cannabis Retail Sales –Steve Benowitz –2103 Vermillion Street Council Action Requested: Consider adoption of the attached resolution granting a Special Use Permit (SUP) for cannabis retail sales to Steve Benowitz on property located at 2103 Vermillion Street. Approval of an SUP requires six of seven council members. Advisory Commission Review: The Planning Commission voted 5-0 to recommend approval of the request as presented at the April 28, 2025 meeting.During the public hearing, Steve Benowitz, applicant, spoke about his years of operation in Hastings and his commitment to carefully managing the operation. Joshua Bruns had questions about the setback distance for the operation. Commissioners discussed the setback of park activities. Special Use Permit (SUP) Determination Certain activities within zoning districts are identified as “Special Uses” requiring issuance of a Special Use Permit (SUP) prior to operation. The Planning Commission must hold a public hearing and provide a recommendation to the City Council on the issuance of a SUP. SUP’s may be approved subject to the establishment of conditions and safeguards as appropriate under the zoning code. SUP’s may be denied when the use is determined not be in harmony with the purpose and intent of the Zoning Code. Specific written reasons for the denial must be adopted to support the denial. Written reasons for denial must relate to the inability to establish conditions to ensure protection of public health, safety or general welfare. Issuance of SUP Does Not Guarantee Right to Operate The following actions are necessary prior to operating a retail cannabis business: •Special Use Permit from the City –Necessary to demonstrate compatibility with the City’s Zoning Code on the general licensing application through the Minnesota Office of Cannabis Management (OCM). •License from OCM –Includes submittal of application and completion of background check. •Registration with the City –Chapter 117 of the City Code regulates registration through the City Clerk’s office. The Ordinance only allows one retail cannabis business within 堭䌭〲 the City. Determination of registration in cases of multiple licenses from OCM will be determined by the City Council at a later date. Attachments: •Resolution –SUP •Planning Commission Staff Report –April 28, 2025 堭䌭〲 HASTINGS CITY COUNCIL RESOLUTION NO._________ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HASTINGS GRANTING A SPECIAL USE PERMIT FOR THE RETAIL SALE OF CANNABIS AT 2103 VERMILLION STREET FOR STEVE BENOWITZ WHEREAS, Steve Benowitz has applied for a Special Use Permit for the retail sales of cannabis at 2103 Vermillion Street, PID 19-81700-01-010. The property is legally described on Attachment A; and WHEREAS, on April 28, 2025 the Hastings Planning Commission held a public hearing and recommended approval of the action as presented; and WHEREAS, the City Council reviewed the request and concurs with the recommendation of the Planning Commission. NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HASTINGS AS FOLLOWS: The City Council hereby approves the action as presented subject to the following conditions: 1)Obtaining a license for retail cannabis sales through the Minnesota Office of Cannabis Management (OCM). 2)Registering the license for retail cannabis sales with the Hastings City Clerk’s Office. 3)Adherence to Hastings City Code Chapter 117 –Cannabis Businesses and Chapter 155.07, Subd. J –Cannabis Businesses. 4)Retail sales of cannabis are allowed from 10:00am to 9:00pm only. 5)Cannabis use cannot violate City Code Chapter 95 regarding public nuisances. 6)The cannabis use shall have no more than two signs 堭䌭〲 7)Blinking, moving, and flashing signs that are visible from the exterior of the building are prohibited. 8)No interior sign shall be visible from the exterior of the building. 9)Approval shall not be implied as preference of or granting permission to operate a retail cannabis facility in conjunction with OCM licensing and City registration. 10)Approval of the Security Plan by the Hastings Chief of Police. 11)Approval is subject to a one-year Sunset Clause; if significant progress is not made towards implementation of the proposed use within one year of City Council approval, the approval is null and void. 12)Approval shall exclude that portion of the building currently addressed as 2101 Vermillion Street and operated as The Bar Drafthouse. Adopted by the Hastings City Council on May 5, 2025. ATTEST:__________________________ Mary Fasbender, Mayor ________________________________ Kelly Murtaugh, City Clerk (City Seal) 堭䌭〲 I HEREBY CERTIFY that the above is a true and correct copy of resolution presented to and adopted by the City of Hastings, County of Dakota, Minnesota, on the 5th day of May, 2025, as disclosed by the records of the City of Hastings on file and of record in the office. ________________________________ Kelly Murtaugh, City Clerk This instrument drafted by: City of Hastings (JH) 101 4th St. E. Hastings, MN 55033 堭䌭〲 ATTACHMENT A LEGAL DESCRIPTION –2103 VERMILLION STREET PID 19-81700-01-010 That part of Lot 1, Block 1, TOWN OF VERMILLION, Dakota County, Minnesota beginning at the southwest corner of said lot thence northwesterly on the west line of said lot a distance of 90 feet; thence northeasterly and parallel to the south line of said lot a distance of 193 feet; thence northwesterly and parallel to the west line of said lot to the north line of said lot; thence easterly on the north line of said lot to the point of intersection with the line drawn parallel with and 205 feet east of the west line; thence southeasterly on said line to the south line of said lot; thence southwesterly on the south line of said lot to the point of beginning. 堭䌭〲 Planning Commission Memorandum To:Planning Commission From:John Hinzman, Community Development Director Date:April 28, 2025 Item:Public Hearing –Special Use Permit (SUP) –Cannabis Retail Sales –Steve Benowitz - 2103 Vermillion Street REQUEST The Planning Commission is asked to take the following actions related to the Special Use Permit (SUP) application of Steve Benowitz to conduct cannabis retail sales at 2103 Vermillion Street: 1)Hold a public hearing. 2)Review the SUP application and provide a recommendation to the City Council. BACKGROUND INFORMATION Cannabis Retail vs. Lower Potency Hemp Edible On December 2, 2024 the City Council adopted an ordinance amendment for cannabis and lower-potency hemp edible uses. The ordinance established parameters for retail sales, manufacturing, and wholesaling of cannabis products. Regulations for lower-potency hemp edible uses (which were established by the Council in November 2023) were further clarified. “Cannabis Businesses” in the 2023 code are now classified as lower-potency hemp edible uses and subject to potency limits. Special Use Permits issued for cannabis retail businesses in 2024 are now classified as “lower-potency hemp edible” businesses. Issuance of SUP Does Not Guarantee Right to Operate The following actions are necessary prior to operating a retail cannabis business: •Special Use Permit from the City –Necessary to demonstrate compatibility with the City’s Zoning Code on the general licensing application through the Minnesota Office of Cannabis Management (OCM). •License from OCM –Includes submittal of application and completion of background check. •Registration with the City –Chapter 117 of the City Code regulates registration through the City Clerk’s office. The Ordinance only allows one retail cannabis business within the City. The City Council will need to determine the method for registration in cases of multiple licenses from OCM. 堭䌭〲 Notification and Public Hearing Notification of the request was mailed to all property owners within 350 feet. The notice included an invitation to the Planning Commission public hearing. Staff have not received any comments at this time. Comprehensive Plan Classification The 2040 Comprehensive Plan designates the property as Commercial. The proposed use is consistent with the plan. Zoning Classification The property is C-3 –Community Regional Commerce. The C-3 District allows for cannabis retailers as a special use. Adjacent Zoning and Land Use Direction Property Use Zoning Comp Plan North O’Reilly Auto Parts C-3 Commercial East Century Link C-3 Commercial South Rivertown Event Center C-3 Commercial West Vermillion Street Las Margaritas Restaurant C-3 Commercial Existing Condition Cannabis sales would occur within an existing vacant building attached to The Bar (with both spaces being owned by the same entity). The Bar has been in business for many years and the proposed space for cannabis sales was last used as a liquor store. SPECIAL USE PERMIT REVIEW Background Hastings City Code Chapter 155.30, Subd. C.10 –allows cannabis retailers as a “special use” within the C-3 Zoning District, subject to the requirements of 155.07, Subd. J.5 as follows: 5.Performance Standards. All cannabis businesses must comply with the following: a.Retail sales of cannabis and lower-potency hemp edible products are permitted from 10:00 a.m. to 9:00 p.m., seven days a week. Retail sales of lower-potency beverages associated with an on-sale or off-sale liquor license are permitted during the hours of operation of the associated liquor license. b.No cannabis use shall be allowed as part of any Adult Use Establishment business, as defined in City Code Section 114.21. c.Cannabis uses cannot violate City Code Chapter 95 regarding public nuisances. 堭䌭〲 d.Distance Restrictions. Distances from a cannabis use or lower-potency hemp edible use are measured from the storefront of a retail use and from the property line of all other cannabis uses and shall comply as provided below. (1) There must be at least one thousand feet (1,000’) between each cannabis use. (2)The location of the use must be located: (a)More than five hundred feet (500’) from a school as measured from property line of the school to the use; (b)More than five hundred feet (500’) from a residential treatment facility, as measured from the property line of the facility to the use; (c)More than five hundred feet (500’) from an attraction within a public park that is regularly used by minors, such as, but not limited to a playground, athletic field, athletic court, picnic area or restrooms, pavilion or park building, disc golf features, as each is measured from the location of the public park attraction to the use. However, such distance restrictions shall not extend across Highway 61 or Highway 55 but shall terminate if it intersects with such highways. (d)All buildings used for manufacturing, production, testing, processing, or warehousing of cannabis must be setback a minimum of five hundred feet (500’) from a residential zoning district or residential use as measured from the property line of the cannabis use to the property line of the nearest residential zoning district or residential use. (3)Exceptions to distance restrictions: (a)Lower-potency hemp edible retail uses shall be five hundred feet (500’) from other lower-potency hemp edible retail uses and five hundred feet (500’) from all other cannabis uses but otherwise shall be exempt from the distance requirements in City Code 155.07.J.5.e.(2). (b)On-sale and off-sale liquor establishments selling lower-potency beverages and that have a lower-potency hemp edible City Registration and State License shall be exempt from the distance requirements in City Code 155.07.J.5.e.(1) and 155.07.J.5.(2) and they do not count against other uses for purposes of City Code 155.07.J.5.e.(1). (c)Cannabis retail uses located east of Vermillion Street and north of 4th Street and west of Bailey Street in the DC Downtown Core or C-3 Community Regional Commerce zoning districts shall be exempt from the distance requirements of City Code 155.07.J.5.e.(2)(c). (d)Cannabis cultivation uses shall comply with the distance requirements in City Code 155.07.J.5.e.(1) but shall be exempt from the distance requirements in City Code 155.07.J.5.e.(2). e.Signs must comply with the standards in City Code 155.08 for the relevant zoning district in which the business is located, except for the following: (1)No cannabis use shall have more than two (2) signs; (2)Blinking, moving, and flashing signs that are visible from the exterior of the building are prohibited; (3)No lower-potency hemp edible use shall advertise the lower-potency hemp edible products on more than one (1) exterior sign; (4)No interior sign shall be visible from the exterior of the building. f.Cannabis uses must meet the minimum parking requirements for each type of use as stated in City Code for that use, for example, retail must meet the retail requirements, manufacturing must meet the manufacturing parking requirements. If there is a 堭䌭〲 combination of uses at the same location, the use that requires the largest number of spaces must be met. g.A security plan must be submitted to and approved by the Chief of Police to address security issues in order to protect the public health, safety, and general welfare. The security plan must include, but is not limited to, addressing issues surrounding parking, traffic, securing of monetary transactions, building security and alarm systems both internal and external, screening, lighting, window and door placement, landscaping, and hours of operation. Analysis •The site meets the 1,000-foot minimum distance requirement between cannabis uses. •The site is more than 500 feet from a school, and residential treatment facility. •The site is more than 500 feet from a playground, athletic field, athletic court, picnic area or restrooms, pavilion or park building, or disc golf. •The site meets the minimum parking requirements. •A security plan has been reviewed by the Chief of Police. Special Use Permit Requirements Special Use Permit review is outlined in Chapter 30.02, Subd. E.2.b.5 of the City Code and subject to adherence to the following (staff analysis appears in red) 1.Ingress and egress to property and proposed structures thereon with particular reference to automotive and pedestrian safety and convenient traffic flow and control, and access in case of fire or catastrophe;Ingress and egress to the property will be unchanged and is served by a shared private parking lot entrance to Vermillion Street. The sale of cannabis products on site will not require changes to ingress and egress. 2.Off-street parking and loading areas where required, with particular attention to division (E)(2)(b)5.a. above, and the economic, noise, glare, or odor effects of the special use on adjoining properties and properties generally in the district;Parking and loading is adequate,and the proposed use will not require changes. The property is surrounded by other commercial uses. 3.Refuse and service areas, with particular reference to items divisions (E)(2)(b)5.a. and (E)(2)(b)5.b. above;The sale of cannabis products will not increase the need for refuse areas. 4.Utilities, with reference to locations, availability, and compatibility;Utility service is adequate and will not change with cannabis sales. 5.Screening and buffering with reference to type, dimensions, and character;Screening and buffering is adequate and will not change with cannabis sales. 6.Signs, if any, and proposed exterior lighting with reference to glare, traffic safety, economic effect, and compatibility and harmony with properties in the district;No cannabis use shall have more than two signs, blinking and flashing signs are prohibited, and interior signs may not be visible from the exterior of the building. 7.Required yards and other open space; Yards and open space are unchanged. 8.General compatibility with adjacent properties and other properties in the district.Property concerns commercially zoned property on all sides. 堭䌭〲 Recommendation Approval of the Special Use Permit is recommended subject to the following requirements: 1)Obtaining a license for retail cannabis sales through the Minnesota Office of Cannabis Management (OCM) 2)Registering the license for retail cannabis sales with the Hastings City Clerk’s Office. 3)Adherence to Hastings City Code Chapter 117 –Cannabis Businesses and Chapter 155.07, Subd. J –Cannabis Businesses. 4)Retail sales of cannabis are allowed from 10:00am to 9:00pm only. 5)Cannabis use cannot violate City Code Chapter 95 regarding public nuisances. 6)The cannabis use shall have no more than two signs 7)Blinking, moving, and flashing signs that are visible from the exterior of the building are prohibited. 8)No interior sign shall be visible from the exterior of the building. 9)Approval shall not be implied as preference of or granting permission to operate a retail cannabis facility in conjunction with OCM licensing and City registration. 10)Approval of the Security Plan by the Hastings Chief of Police. 11)Approval is subject to a one-year Sunset Clause; if significant progress is not made towards construction of the proposal within one year of City Council approval, the approval is null and void. Attachments •Location Map •Floor Plan •Security Plan •Application 堭䌭〲 LO C A T I O N M A P SI T E PI C T U R E 堭䌭〲 ! " #$%&'(&)*+ ,- . ,- . , / ,- . ,- / - - 0 - - 1 2 - 2 - ! 0 , / / 3 ,- / 4 ' . / 0 5 0 / 5 " % " / 6 - #0 2 7 . 0 + / ! ! / # - - - 7 . - 3 + 8 %" ! 7 . , - / 2 2 - 8 , / %" ! - 2 - - 2 - - !! " # $ " " # $ " " # $ " " # $ " # $ " # $ " # $ " # $ " 9 % & " % & " % & " % & " ' ( ) ' ' ( ) ' ' ( ) ' ' ( ) ' , 3 / ! , / 0 X- C - 0 2 1 Creative4Oesign ^J^rks,LLC. — 2103 Vermillion St. Hastings MN 55033 Security Plan : Green to Go, LLC is committed to ensuring the highest standards of security to protect assets, employees, and customers, and prevent the diversion of cannabis. Security monitoring procedures and training will be in place to outline the strategies and protocols for effectively monitoring the security systems, ensuring continuous protection and compliance with state regulations. The alarm and surveillance systems will be monitored continuously by a dedicated security team and a contracted security company. Any attempted breach will sound an alarm and notify personnel and the monitoring company, ensuring a prompt response to any and all intrusion events. Authorized personnel and local law enforcement will receive immediate alerts for unauthorized access, hazardous conditions, and alarm system failures, enabling them to take swift action. The alarm and surveillance system will operate 24/7. To enhance the effectiveness of security monitoring, procedures will be implemented for reviewing surveillance footage. The security team will conduct regular reviews of recorded footage, focusing on high-risk periods and areas to help identify potential security gaps, and ensure that any patterns of suspicious behavior are detected early. Additionally, the footage will be stored securely for a minimum of 90 days, with provisions to retain it longer if required for investigations or legal proceedings. Green to Go, LLC will manage and monitor access control systems, including electronic locks and keypads. A detailed log of all entries and exits for controlled areas will be maintained, regularly reviewing this data to identify any irregularities. Employees will be required to use their identification badges for access, and the security team will ensure that badges are always visible and used correctly. Any access attempts by unauthorized individuals will be flagged for immediate investigation. The security team will track all transport vehicles using GPS systems, ensuring real-time monitoring of their locations. They will maintain open communication channels with transport personnel, providing support and responding to any security concerns during transit. Additionally, transport routes and schedules will be reviewed periodically to assess potential risks and implement necessary adjustments. All transport vehicles will be secured and limit access. Green to Go, LLC will establish a protocol for periodic testing of all alarm and surveillance systems, conducting inspections at least every 90 days. Any issues identified during these tests will be addressed promptly, with repairs completed within 72 hours to maintain continuous security. Detailed records of all testing and maintenance activities will be kept for a minimum of 3 years, providing a clear audit trail and ensuring compliance with regulatory requirements. To prevent theft and diversion, the security 堭䌭〲 team will implement and monitor comprehensive measures across all aspects of the business. This includes continuous surveillance of critical areas, strict access controls, and regular audits of inventory and transport operations. Any discrepancies or signs of theft or diversion will be investigated thoroughly, with corrective actions taken to prevent future occurrences. The security team will also maintain detailed compliance records, demonstrating our commitment to security and regulatory adherence. Green to Go, LLC will employ the use of various security equipment to ensure the safety and compliance of the cannabis business. The security system will include an intrusion detection alarm system, video surveillance, lighting, access controls, and other essential security measures to prevent the diversion of cannabis and protect business assets, workers, visitors, and the community. Green to Go, LLC will install and maintain a commercial-grade security alarm system that operates 24/7. The system will be monitored by a contracted security company or authorized personnel and provide immediate alerts for unauthorized breaches, hazardous conditions, and alarm system failures. A backup alarm system will be available to activate automatically upon loss of electricity, and it will alert authorized personnel of the power outage. The system will also include an audible alarm that can be heard within a 100-foot radius of entrances and exits, with authorized personnel able to remotely disable the audio alarm. There will be a backup power system capable of providing power to the security system for at least 8 hours. In case of an alarm system failure expected to last longer than 8 hours, local law enforcement and the office will be notified, and alternative security measures will be provided during the outage. Green to Go, LLC will install a visual surveillance system to monitor all entry and exit points of the premises to identify individuals entering and exiting. Surveillance will also extend to limited access areas and restricted access areas, as well as specific areas such as cultivation, storage, packaging, labeling, point- of-sale, sample collection, and waste destruction. Cameras will operate 24/7, recording at a minimum of 15 frames per second with a resolution of 720p. All recordings will have synchronized date-and-time stamps that do not obscure the picture. Video files will be stored securely for at least 90 days and be available for viewing by the office upon request. Recordings will be retained longer if notified of pending investigations or legal proceedings. Cameras will also be able to record for an additional 8 hours during power outages. Lighting will be maintained to deter nuisance and criminal activity, ensuring clear observation and recording of activities within a 20-foot radius of all entrances and exits. Any deficient or inoperable lighting will be repaired within 48 hours of detection. All perimeter entrances and windows will be equipped with commercial-grade locks, including electronic locks and keypads. Interior doors, windows, gates, and fences will also have commercial-grade locks as required. All cannabis workers will be issued ID badges indicating the activities they may perform and the areas they may access. Signage will be posted at all points of access to restricted areas, stating “Do Not Enter – Access Limited to Authorized Employees Only” with lettering no smaller than one inch in height. Transport vehicles will be equipped with compliant storage compartments, GPS devices for real-time tracking, functioning heating and air conditioning for proper storage temperatures, and appropriate insurance as required by regulatory bodies. Workers will possess valid ID cards and driver’s licenses and have a means of secure 堭䌭〲 communication, such as mobile phones, during transportation. Cannabis products will not be left unattended in vehicles or overnight. Police Chief 堭䌭〲 X-C-02 City of Hastings Community Development Department Land Use Application Address or PID of Property:X/CWn I H|>5^. r as it rw Phone: Fax: Email: Property Owner: Address:\LOCUSr Hl IK VfX /NW 1PhonedIP17Sag)-17 W Fax: Email:@ I •'J (Or Applicant Name:SKW femiWlVgr Address:WAW (K QMMMW Description of Request: Mis W,n^d Mnw (M W F+OP'finij ama If requesting site plan review of multi-family units (three or more attached),are the units intended to be for sale or rental units? Check Applicable Line(s)Please Note:All Fees and Escrows are due at time of application.[Rezone $500 OI Minor Subdivision $500[Final Plat $600 gI Special Use Permit $500[Variance $300 I Comp Plan Amend.$500o[Vacation $500 O[Lot Split/Lot Line Adj.$75[House Move $500 [Annexation $500 +$5,000 escrow[Prelim Plat $500 +$5,000 escrow 1 1j EAW $500 +$5,000 escrowo[Site Plan $500 +$5,000 escrow ||I Interim Use Permit $500 Total Amount Due:$)0 Make checks payable to City of Hastings. Most credit cards accepted,excluding escrow payments. Applicant Name and Title -Please Print OFFICIAL USE ONLY ~~ File #0 5"Rec'd By:/O Fee Paid:/TV IQ Receipt # Owner Name -Please Print Date Rec'd: App.Complete X-C-02 ACKNOWLEDGEMENT OF RESPONSIBILITY This is to certify that I am making application for the described action by the city and that I am responsible for complying with all city requirements with regard to this request.This application should be processed in my name and I am the party whom the city should contact regarding any matter pertaining to this application. I have read and understand the instructions supplied for processing this application.The documents and/or information I have submitted are true and correct tothe best of my knowledge. I will keep myself informed of the deadlines for submission of material and of the progress of this application. I understand that this application may be reviewed by city staff and consultants.I further understand that additional information,including,but not limited to,traffic analysis and expert testimony may be required for review of this application.I agree to pay to the city upon demand, expenses,determined by the city,that the city incurs in reviewing this application and shall provide an escrow deposit to the city in an amount to be determined by the city.Said expenses shall include,but are not limited to,staff time,engineering,legal expenses and other consultant expenses. I agree to allow access by city personnel to the property for purposed of review of my application and to erect a temporan^ignTnd^application proposed. Signature of applicant —Date_II — Name of applicant Phone (Please Print) Name and address of Contact (if other than applicant) Phone Number Date City Council Memorandum To:Mayor Fasbender and City Council From:Justin Fortney, City Planner Date:May 5, 2025 Item:Resolution: Structure Move and Variance #2025-08 –413 2nd Street W –Fred Weiland Council Action Requested: Consider adoption of the attached resolutions granting the following requests of Fred Weiland at 413 2nd St W: 1.Move an existing rambler from outside the city to the subject property to be used as a garage. Chapter 30.03 Board of Design Control, Subd. (C) Referral By Planning Director. Adoption of a structure move requires the simple majority support of Councilmembers. 2.A five-foot variance to the ten-foot street side setback of an accessory structure. Chapter 155.05, Subd. (D)(11) –Accessory structures: R-2, Corner side setback – 10’. Adoption of a variance requires the support of at least six of seven Councilmembers. Background Information: The applicant is proposing to move a vacant rambler from 12003 Akron Avenue in Rosemount to the subject property for use as a garage. The rambler was built in 1949 and is 920 square feet in size, measuring about 46’ by 21’. The structure is proposed to be located between the house and Forest Street.The front setback will be even with the front of the existing house. A street side setback variance is proposed.Please see the attached Planning Commission staff report for additional information. Financial Impact: N\A Advisory Commission Discussion: The Planning Commission voted 5-0 to recommend approval of the structure move and variance at the April 28, 2025 meeting with the added condition that exterior work consistent with HPC approval be completed by September 30, 2026. No one from the public spoke for or against the item during the hearing. Council Committee Discussion: N\A Attachments: •Resolution: Structure move •Resolution:Variance •Planning Commission Staff Report -April 28, 2025 X-C-03 HASTINGS CITY COUNCIL RESOLUTION NO._________ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HASTINGS GRANTING MOVING A STRUCTURE FOR FRED WEILAND AT 413 2ND STREET WEST Council member _______________________ introduced the following Resolution and moved its adoption: WHEREAS, Fred Weiland, Property Owner, seeks to move a 920 s.f. structure to serve as a garage on property generally located at 413 2nd Street West and legally described as Lots 3 & 4 Block 9, TOWN OF HASTINGS BLOCKS 1 THRU 99, Dakota County, Minnesota; and WHEREAS, on April 15, 2025, the proposal was reviewed and issued a Certificate of Approval by the Heritage Preservation Commission of the City of Hastings, as required by state law, city charter and city ordinance Chapter 30.10 (E)&(F); and WHEREAS, Hastings City Code Chapter 30.03(C)Requires structures proposed for move that may be at variance with existing structures be reviewed by the Hastings Planning Commission appointed as the Board of Design Control; and WHEREAS, on April 28, 2025, the proposal was reviewed by the Planning Commission of the City of Hastings, as required by state law, city charter and city ordinance; and WHEREAS the Planning Commission recommended approval of the request to the City Council subject to the conditions contained herein; and WHEREAS the City Council has reviewed the request and concurs with the recommendation of the Planning Commission; and X-C-03 NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HASTINGS AS FOLLOWS: That the City Council hereby approves the structure move as presented to the City Council with the following conditions: 1.Conformance with the City Council Staff report and attachments dated May 5, 2025. 2.Approval is subject to a one-year Sunset Clause; if progress on the proposal is not made within one year of City Council approval, the approval is null and void. 3.The proposed garage must meet all applicable building codes and building permit approvals. 4.All work must meet the April 15, 2025 Certificate of Approval issued by the Hastings Heritage Preservation Commission. 5.The foundation must be permitted and constructed prior to moving the structure on site. 6.The building’s condition and appearance must be made in good repair without any missing, broken, or rotten components. 7.The exterior improvements consistent with the April 15, 2025 HPC Certificate of Approval must be completed by September 30, 2026. Council member __________________ moved a second to this resolution and upon being put to a vote adopted by _____ present. Adopted by the Hastings City Council on May 5, 2025 by the following vote: Ayes: Nays: Absent: ATTEST:__________________________ Mary Fasbender, Mayor ________________________________ Kelly Murtaugh City Clerk X-C-03 HASTINGS CITY COUNCIL RESOLUTION NO._________ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HASTINGS GRANTING A VARIANCE TO THE STREET SIDE SETBACK OF AN ACCESSORY BUILDING FOR FRED WEILAND AT 413 2ND STREET W Council member _______________________ introduced the following Resolution and moved its adoption: WHEREAS, Fred Weiland, requests a five-foot street side variance on property generally located at 413 2nd Street West and legally described as Lots 3 & 4 Block 9, TOWN OF HASTINGS BLOCKS 1 THRU 99, Dakota County, Minnesota; and WHEREAS, The Subject Property is Zoned R-2, Medium Density Residence per Hastings City Code Chapter 155.01 (A) -Zoning Map; and WHEREAS, Hastings City Code Chapter 155.05, Subd. (D)(11) –Accessory structures: R-2, corner side setback requires a setback of 10-feet; and WHEREAS, The Property Owner seeks a 5-foot variance to Hastings City Code Chapter 155.05(D)(11) to allow placement of a 920 s.f. accessory structure on the Subject Property; and WHEREAS, on April 28, 2025, the request was reviewed by the Planning Commission of the City of Hastings, as required by state law, city charter and city ordinance; and WHEREAS the Planning Commission recommended approval of the request to the City Council subject to the findings of fact contained herein; and X-C-03 WHEREAS the City Council acting as the Board of Zoning Adjustment and Appeals has reviewed the request and concurs with the recommendation of the Planning Commission; and NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HASTINGS AS FOLLOWS: That the City Council hereby approves the variance as presented to the City Council based on the following findings of fact: 1)The physical surroundings and conditions of land present a practical difficulty. The flattest area of the property is nearest Forest Street. If a structure were placed closer to the home, there would be excessive cut and filling required.The required amount of slope cutting may cause significant damage to mature tree roots of the trees the applicant intends to save from removal. Forest Street is only a short stub street in this location because the elevation drops significantly south of this location and would likely never be extended further. As a result, Forest Street in this location is only 20-feet wide, creating an extremely wide boulevard of 23-feet between the street and property line. This creates an excessive structure setback from the street compared to typical properties. all of which pose practical difficulties to the homeowner. 2)Site conditions are highly unique to the subject tract of land. There are no other properties identified that have similar conditions. 3)The owner doesn’t seek to obtain the variance exclusively to increase the value or income potential of the lot, as the variance is only necessary to place a typical accessory structure without encountering practical difficulties. 4)Granting of the variance will not be detrimental to the public welfare or injurious to other land improvements in the vicinity. It will not be closer to the streets than other structures on typical lots. 5)The property will not impair light, air, congestion, fire danger, public safety, or property values within the vicinity for the reasons listed above. 6)The variance is in harmony with the purposes and intent of ordinance. Granting the variance would allow for the placement of an accessory structure that will appear the same distance from the street as typical properties due to the uniquely wide boulevard. 7)The property is guided for low density residential development. The proposed use is consistent with the Comprehensive Plan. 8)The proposal puts the property to use in a reasonable manner, as it is an allowable accessory structure. 9)The practical difficulty is caused by the provisions of this chapter, site, and area conditions.They were not created by people presently or formerly having an X-C-03 interest in the parcel of land; The practical difficulties were created by the topography, unique side street,configuration and dead end. 10)The variance does not alter the essential character of the locality. The parcel will continue to operate consistent with the way the property has existed for over a century and similarly to the surrounding area. 11)The variance is not sought for economic considerations. BE IT FURTHER RESOLVED BY THE CITY COUNCIL OF THE CITY OF HASTINGS AS FOLLOWS: Approval of the variance is subject to the following conditions: 1.Conformance with the City Council Staff Memo and attachments dated May 5, 2025. Council member __________________ moved a second to this resolution and upon being put to a vote adopted by _____ present. Adopted by the Hastings City Council on May 5, 2025 by the following vote: Ayes: Nays: Absent: ATTEST:__________________________ Mary Fasbender, Mayor ________________________________ Kelly Murtaugh City Clerk X-C-03 STATE OF MINNESOTA ) City of Hastings )ss. COUNTY OF DAKOTA ) I, the undersigned, being the duly qualified and acting City Clerk of the City of Hastings, Minnesota, DO HEREBY CERTIFY, that I have carefully compared the attached copy of Resolution with the original on file in my office and the same is a full, true and complete copy thereof. WITNESS, my hand as such City Clerk and the corporate seal of the City of Hastings this ____day of________________, 20___. ______________________________ Kelly Murtaugh, City Clerk SEAL STICKER X-C-03 To: Planning Commissioners From:Justin Fortney, City Planner Date:April 28, 2025 Item:Structure Move and Variance #2025-08 –413 2nd Street W –Fred Weiland Planning Commission Action Requested 1.The Planning Commission, serving as the Board of Design Control is asked to review the following request to move a structure to 413 2nd Street W. a.Move an existing rambler from outside the city to the subject property to be used as a garage.Chapter 30.03 Board of Design Control, Subd. (C) Referral By Planning Director. 2.The Planning Commission,providing a recommendation to the City Council, serving as the Board of Zoning Adjustment and Appeals, is asked to review the following request for a variance. a.A five-foot variance to the ten-foot street side setback of an accessory structure. Chapter 155.05, Subd. (D)(11) –Accessory structures: R-2, Corner side setback –10’. Background Information The subject property is listed as a Local Heritage Preservation Site in the City of Hasting. This requires all exterior changes to be approved by the HPC. Last June the applicant applied to the HPC to move an adjacent house onto the property to be used as a garage. This was approved, but the owner decided to continue to rent home out as a residence. He recently reapplied to move the subject structure to the property as a garage with some modifications. The HPC approved the request with either a 5-foot or 10-foot street side setback. Structure move The applicant is proposing to move a vacant rambler from 12003 Akron Avenue in Rosemount to the subject property for use as a garage. The rambler was built in 1949 and is 920 square feet in size measuring about 46’ by 21’. The structure is proposed to be located between the house and Forest Street, setback even with the front of the existing house from 2nd Street. A street side setback variance is discussed further in this report. Planning Commission Memorandum X-C-03 A proposed structure to be built, altered, or moved to a site that could potentially be dissimilar to area structures must be reviewed by the Planning Commission, acting as the Board of Design. Area homes are predominantly from the mid to late 19th century, except for the home to the west, which was built in 1959 and a home across the street built in 2004. The homes are all in good condition. The home to the west is of similar era and architectural style to the proposed structure. The proposed structure The structure was a three-bedroom and one-bathroom home that is now vacant and partially stripped. There are signs of deferred maintenance including siding in poor condition, wood rot around some windows, broken window panes, damaged fascia, and an aged roof. A City building inspector did a brief inspection of the subject structure and found it was structurally sound but needed maintenance and repairs. He suspects there could be issues with the sill plate being rotten in places due to the high dirt level around the home. Knowing the structure was intended to be used as a garage, the inspector reviewed the attic and found evidence that the center wall was likely bearing load from the roof. He said this could possibly be changed to a beam and posts by an architect or engineer. This would leave 10-foot-wide parking stalls. The inspector said the structure would have to be anchored to a foundation or frost protected slab, if moved. He added that a move would require a building permit and complete plan submittal for all planned and required work. Proposed changes The applicant proposes to repair and paint all the siding and convert the 2nd Street facing cross gable end into an open porch. He also proposed increasing the wall height from 8- feet to 10-feet with formed concrete on the footings. The applicant proposes installing garage door(s)on the south side of the garage, which would not be visible from the streets. Timeframe The applicant states his timeframe for the project is two construction seasons because he may not get the structure set on site until the middle or end of summer. This year, he proposes to move it, excavate, and install the concrete work. The second season he would complete the project by addressing structural and cosmetic changes. Variance Definition Variances are deviations from strict compliance of City Code provisions. The Board of Adjustment and Appeals may issue a variance upon determination of findings of fact and conclusions supporting the variance as established in Chapter 30.02, Subd. F of the City Code. X-C-03 Board of Zoning Adjustment and Appeals Hastings City Code Chapter 30.02 establishes the Board of Zoning Adjustment and Appeals and appoints the City Council and Planning Commission to facilitate the Board’s roles and duties. Applications for Variances require Board of Zoning Adjustment and Appeals review. Variance Review City Code Chapter 30.02(F) establishes the requirement for granting variances. The Planning Commission (acting in part as the Board of Adjustment and Appeals) may consider variances to the Zoning Code that are not contrary to the public interest where owing to special conditions, and where a literal enforcement of the provision of the City Code would result in practical difficulties. NOTIFICATION Property owners within 350-feet of the subject property were notified of the requests. Staff has not received any comments. ATTACHMENTS •Aerial map •Supplemental application materials •Structure photos •Site photos •Plans X-C-03 Ae r i a l M a p X- C - 0 3 FOREST i STREET n>a»a X-C-03 Ga r a g e d o o r l o c a t i o n p r o p o s e d X- C - 0 3 WWW Arrows pointing to stakes of garage location without variance. X-C-03 Applicant: Trailer representing structure corners and height to show spacial relations and proximity to slope and trees. 413 2nd St. W. X-C-03 The following page shows an elevation diagram from the applicant of the grade differential between the required setback and the requested 5-foot variance. X-C-03 X-C-03 wWw/lift'd ' Z City Council Memorandum To:Mayor Fasbender and City Council From:Alex Menke, Economic Development Coordinator Date:May 5, 2025 Item:Approve the Creation of the Arts Event Grant Program and Cultural Event Grant Program Council Action(s)Requested: 1)Approve the creation of the Arts Event Grant Program. This program and its funds will be reviewed by the Arts and Culture Commission and recommend applications to City Council for approval and funding. A simple majority is necessary for action. 2)Approve the creation of the Cultural Event Grant Program. This program and its funds will be reviewed by the Arts and Culture Commission and recommend applications to City Council for approval and funding.A simple majority is necessary for this action. History In the creation of the 2025 Work Plan, the Arts and Culture Commission expressed an interest in pivoting from hosting events to financially supporting existing groups so that they can host events. The logic behind this is that the non-profit groups have more flexibility with event planning where the Commission is bound by the rules and regulations that all city commissions must follow. This led Staff to draft a set of grant programs that provide matching funds for arts and cultural non-profits to host events within Hastings.The Commission will review applications and provide recommendations to City Council for approval and funding. Budget Both the AEGP and CEGP have an annual budgeted amount of $3,000.00, with a maximum grant of $1,000.00. Both programs are matching grants, which means that for every $1.00 of requested grant funding, the non-profit must provide an additional $1.00 from a different source. This will allow at least six different organizations to host events within the City. The funds are subject to availability at the time of application submittal. Attachments -Draft of the Art Event Grant Program (AEGP) -Draft of the Cultural Event Grant Program (CEGP) 堭䌭〴 DRAFT Arts Event Grant Program City of Hastings Arts and Culture Commission PROGRAM INFORM ATI ON,GUIDELINES AND APPLI CATI ON INSTRUCTI ONS City of Hastings 101 4th Street East,Hastings,MN 55033 T:651-480-2350 www.hastingsmn.gov X-C-04 HASTINGS ARTS AND CULTURE COMMISSION ARTS EVENT GRANT PROGRAM DRAFT PROGRAM INFORMATION,GUIDELINES AND APPLICATION INSTRUCTIONS SECTION 1:GENERAL PROVISIONS A.Purpose To create a more robust arts community within the City, the Arts Event Grant Program (AEGP) enables local arts groups to be able to host more, or add to existing, events in Hastings. B.Funding Amount The Arts and Culture Commission has budgeted $3,000 for this program. This is a matching grant which requires the Applicant to provide $1.00 of additional funding for every $1.00 of grant funding. The maximum amount of any singular grant award from this program will be $1,000. C.Number of Grants Each Applicant is eligible for one grant per calendar year.An Applicant is defined as each individual organization.Grants will be awarded on a first come first serve basis. SECTION 2:ELIGIBILITY CONSIDERATIONS A.Applicants Eligibility for the Arts Event Grant Program shall be limited to non-profit organizations with a mission of promoting and supporting the arts. B.Eligible Use of Funds a.Reserving locations/spaces b.Paying entertainers/artists c.Purchasing supplies d.Purchasing marketing materials e.Acquiring City permits (if necessary) C.Timing of Project Expenses The event must be held in the calendar year when the grant was rewarded, if an event is unable to be held within the same year the Applicant can request a one-year extension for consideration/approval by the Arts and Culture Commission and City Council D.Location of Event The event must be located within Hastings’ city limits and be available to the public to attend. SECTION 3:APPLICATION PROCEDURES A.Preliminary Discussion Prior to submission of an application, the potential applicant shall discuss with staff the proposed event and program requirements. 堭䌭〴 B.Application Format Applicants shall submit an AEGP application package consisting of the following: a.Completed AEGP Application form b.Cost estimates/quotes for expenses for the event c.Event description including location, dates/times, and ticket costs (if applicable) d.Completed W9 form (required for fund disbursement) C.Application Submittal The completed application and all required attachments shall be submitted to: Alex Menke,Economic Development Coordinator 101 4th Street East Hastings, MN 55033 amenke@hastingsmn.gov Please note,acceptance of applications is subject to the availability of AEGP dollars. SECTION 4:REVIEW PROCESS A.Staff Review Staff shall the review the application for completeness and verification that the proposed project meets the standards and eligibility requirements of the program. Once an application is deemed complete, Staff will schedule the grant application for review by the Arts and Culture Commission.The Arts and Culture Commission meets on the second Wednesday of every month. B.City Compliance All projects must follow City codes and obtain city permits as needed. C.Formal Review The Arts and Culture Commission will meet to formally review the application with staff recommendations. Applicants are encouraged to attend the meeting(s)to provide additional information and/or answer any questions from committee members.The Commission will vote on whether to recommend approval or denial by the City Council. D.Notice of Award/Denial of Application If the application is recommended for approval by the Arts and Culture Commission,and the City Council votes to approve the application,City Staff will notify the Applicant.The Grant Application shall serve as the grant agreement. 堭䌭〴 SECTION 5:DISTRIBUTION OF FUNDS TO APPROVED APPLICANTS A.Evidence of Expenditures and Disbursement of Funds This is a grant program. Applicants that are selected will receive the full amount of their requested funding. Applicants must provide documentation that the funds are being used for the event specified in the application. Any unused funds are to be returned to the Arts and Culture Commission.Applicants shall submit to the Commission the necessary documentation including but not limited to a copy of the invoices and receipts for the items surrounding the event for which the grant was approved. SECTION 6:PROJECT & GRANT CLOSURE REQUIREMENTS A.Project Closeout The Applicant will be required to provide photos of the event directly to the Arts and Culture Commission and list the City of Hastings Arts and Culture Commission as a financial contributor. X-C-04 HASTINGS ARTS AND CULTURE COMMISSION ARTS EVENT GRANT PROGRAM APPLICATION SECTION 1:GROUP CONTACT INFORMATION Organization Name: Organization Description: Organization Site Address: City / State /Zip: Primary Application Contact Person(s): Primary Contact Person(s)Phone: Primary Contact Person(s)Email: Secondary Contact Person Phone (if applicable): Secondary Contact Person Email (if applicable): SECTION 2: PROJECT OVERVIEW Proposed Event Date: Site Reservation:$ Entertainer/Artist Fees:$ Materials: $ Other (attach description)$ Total Costs $ SECTION 3: PROJECT DESCRIPTION Please provide a brief summary of the proposed event and how it will contribute to the arts community in the City X-C-04 Please describe how these funds will impact your event. SECTION 4:AGREEMENT I/We certify that all information provided in this application (and its attachments) is true and correct to the best ofmy/our knowledge. I/We agree to provide any additional information as may be requested by the City of Hastings and Arts and Culture Commission. APPLICATION SIGNATURE: PRINTED NAME &TITLE: DATE: SECTION 6: NOTICES OF DATA PRACTICES Notice of Data Practices THE MINNESOTA DATA PRACTICES ACT requires that we inform you of your rights about the private data we are requesting on this form. Private data is available to you, but not to the public. We are requesting this data to determine your eligibility for a permit from the City of Hastings. Providing the data may disclose information that could cause your application to be denied. You are not legally required to provide the data; however, refusing supply the data may cause your permit not to be processed. Under MS 270.72, the City of Hastings is required to provide the Minnesota Department of Revenue your MN Tax ID Number or Social Security Number. This information may be used to deny the issuance, renewal or transfer of your license if you owe the Minnesota Department of Revenue delinquent taxes, penalties, or interest. The Department of Revenue may supply information to the Internal Revenue Service. In addition, this data can be shared by Hastings City Staff, the State of Minnesota Driver License Section, Dakota County Auditor, Bureau of Criminal Apprehension, and Dakota County Warrant Office. Your signature on this application indicates you understand these rights. Your residence address and telephone number will be considered public data unless you request this information to be private and provide an alternate address and telephone number. Please sign below to indicate you have read this notice: Signature _____________________________________________________ Date _______________ I request that my residence address and telephone number be considered private data. My alternative business address and telephone number are as follows: Address __________________________________________ Phone Number ___________________ X-C-04 DRAFT Cultural Event Grant Program City of Hastings Arts and Culture Commission PROGRAM INFORM ATI ON,GUIDELINES AND APPLI CATI ON INSTRUCTI ONS City of Hastings 101 4th Street East,Hastings,MN 55033 T:651-480-2350 www.hastingsmn.gov X-C-04 HASTINGS ARTS AND CULTURE COMMISSION CULTURAL EVENT GRANT PROGRAM DRAFT PROGRAM INFORMATION,GUIDELINES AND APPLICATION INSTRUCTIONS SECTION 1:GENERAL PROVISIONS A.Purpose To create a more robust community within the City, the Cultural Event Grant Program (CEGP) enables cultural groups to be able to host more, or add to existing, events in Hastings. B.Funding Amount The Arts and Culture Commission has budgeted $3,000 for this program. This is a matching grant which requires the Applicant to provide $1.00 of additional funding for every $1.00 of grant funding. The maximum amount of any singular grant award from this program will be $1,000. C.Number of Grants Each Applicant is eligible for one grant per calendar year.An Applicant is defined as each individual organization.Grants will be awarded on a first come first serve basis. SECTION 2:ELIGIBILITY CONSIDERATIONS A.Applicants Eligibility for the Cultural Event Grant Program shall be limited to non-profit organizations with a mission of promoting and preserving cultural heritage. B.Eligible Use of Funds a.Reserving locations/spaces b.Paying entertainers/artists c.Purchasing supplies d.Purchasing marketing materials e.Acquiring City permits (if necessary) C.Timing of Project Expenses The event must be held in the calendar year when the grant was rewarded, if an event is unable to be held within the same year the Applicant can request a one-year extension for consideration/approval by the Arts and Culture Commission and City Council D.Location of Event The event must be located within Hastings’city limits and be available to the public to attend. SECTION 3:APPLICATION PROCEDURES A.Preliminary Discussion Prior to submission of an application, the potential applicant shall discuss with staff the proposed event and program requirements. 堭䌭〴 B.Application Format Applicants shall submit a CEGP application package consisting of the following: a.Completed CEGP Application form b.Cost estimates/quotes for expenses for the event c.Event description including location, dates/times, and ticket costs (if applicable) d.Completed W9 form (required for fund disbursement) C.Application Submittal The completed application and all required attachments shall be submitted to: Alex Menke,Economic Development Coordinator 101 4th Street East Hastings, MN 55033 amenke@hastingsmn.gov Please note,acceptance of applications is subject to the availability of CEGP dollars. SECTION 4:REVIEW PROCESS A.Staff Review Staff shall review the application for completeness and verification that the proposed project meets the standards and eligibility requirements of the program. Once an application is deemed complete, Staff will schedule the grant application for review by the Arts and Culture Commission.The Arts and Culture Commission meets on the second Wednesday of every month. B.City Compliance All projects must follow City codes and obtain city permits as needed. C.Formal Review The Arts and Culture Commission will meet to formally review the application with staff recommendations. Applicants are encouraged to attend the meeting(s)to provide additional information and/or answer any questions from committee members.The Commission will vote on whether to recommend approval or denial by the City Council. D.Notice of Award/Denial of Application If the application is approved by the Arts and Culture Commission, and the City Council votes to approve the application, City Staff will notify the Applicant.The Grant Application shall serve as the grant agreement. 堭䌭〴 SECTION 5:DISTRIBUTION OF FUNDS TO APPROVED APPLICANTS A.Evidence of Expenditures and Disbursement of Funds This is a grant program. Applicants that are selected will receive the full amount of their requested funding. Applicants must provide documentation that the funds are being used for the event specified in the application. Any unused funds are to be returned to the Arts and Culture Commission.Applicants shall submit to the Commission the necessary documentation including but not limited to a copy of the invoices and receipts for the items surrounding the event for which the grant was approved. SECTION 6:PROJECT & GRANT CLOSURE REQUIREMENTS A.Project Closeout The Applicant will be required to provide photos of the event directly to the Arts and Culture Commission and list the City of Hastings Arts and Culture Commission as a financial contributor. X-C-04 HASTINGS ARTS AND CULTURE COMMISSION CULTURAL EVENT GRANT PROGRAM APPLICATION SECTION 1:GROUP CONTACT INFORMATION Organization Name: Organization Description: Organization Site Address: City / State /Zip: Primary Application Contact Person(s): Primary Contact Person(s)Phone: Primary Contact Person(s)Email: Secondary Contact Person Phone (if applicable): Secondary Contact Person Email (if applicable): SECTION 2: PROJECT OVERVIEW Proposed Event Date: Site Reservation:$ Entertainer/Artist Fees:$ Materials: $ Other (attach description)$ Total Costs $ SECTION 3: PROJECT DESCRIPTION Please provide a brief summary of the proposed event and how it will contribute to creating a more robust community X-C-04 Please describe how these funds will impact your event. SECTION 4:AGREEMENT I/We certify that all information provided in this application (and its attachments) is true and correct to the best ofmy/our knowledge. I/We agree to provide any additional information as may be requested by the City of Hastings and Arts and Culture Commission. APPLICATION SIGNATURE: PRINTED NAME &TITLE: DATE: SECTION 6: NOTICES OF DATA PRACTICES Notice of Data Practices THE MINNESOTA DATA PRACTICES ACT requires that we inform you of your rights about the private data we are requesting on this form. Private data is available to you, but not to the public. We are requesting this data to determine your eligibility for a permit from the City of Hastings. Providing the data may disclose information that could cause your application to be denied. You are not legally required to provide the data; however, refusing supply the data may cause your permit not to be processed. Under MS 270.72, the City of Hastings is required to provide the Minnesota Department of Revenue your MN Tax ID Number or Social Security Number. This information may be used to deny the issuance, renewal or transfer of your license if you owe the Minnesota Department of Revenue delinquent taxes, penalties, or interest. The Department of Revenue may supply information to the Internal Revenue Service. In addition, this data can be shared by Hastings City Staff, the State of Minnesota Driver License Section, Dakota County Auditor, Bureau of Criminal Apprehension, and Dakota County Warrant Office. Your signature on this application indicates you understand these rights. Your residence address and telephone number will be considered public data unless you request this information to be private and provide an alternate address and telephone number. Please sign below to indicate you have read this notice: Signature _____________________________________________________ Date _______________ I request that my residence address and telephone number be considered private data. My alternative business address and telephone number are as follows: Address __________________________________________ Phone Number ___________________ X-C-04 City Council Memorandum To:Mayor Fasbender & City Councilmembers From:City Administrator Dan Wietecha Date:May 5, 2025 Item:PFAS Update Council Action Requested: Informational memo, no action requested at this time. Key Updates •Closed on the 1292 North Frontage Road property April 18. •City Council considering 10% water rate increase effective July 1. Ordinance for second reading and adoption on City Council agenda May 5. •Approval of PFA loan application on City Council agenda May 5. Additionally, we’re updating IUP applications to match construction schedule. •Continue seeking financial assistance: State bonding bill still in consideration.Applied for congressionally directed spending / community project funding for the western WTP. Updating Intended Use Plan applications on all three WTP, including applying for Emerging Contaminants grant for western WTP. •Central WTP is on schedule to bid in May with construction beginning in July / August. City Council approved building just the “foot print” to accommodate equipment specific to nitrates in the future. Background Information Hastings has PFAS contamination in all six of our municipal wells (specifically PFOA in all six wells and PFOS in two wells). We’ve also found PFOA levels over the EPA’s limit in the future Well No. 9 site. The City has completed a Feasibility Study to consider alternatives to mitigate the PFAS. The study recommended construction of three decentralized water treatment plants for PFAS and Nitrate removal. Additionally, our design would enable the interconnect of the Minnesota Veterans Home with the City water system, avoiding the need for it to construct and maintain a WTP for its well. The general plan is to build one WTP per year for three years. The central WTP is expected to bid in May 2025, start construction in August 2025, and substantial completion in December 2026. The eastern WTP would bid in January 2026, and substantial completion October 2027. Finally, the western WTP would bid January 2027, and substantial completion October 2028. These dates are approximate, but the point is that one WTP per year very leaves little room for compliance with the EPA deadline of April 2029. The current construction cost estimate is $68.9M with expectation to trend higher. Without financial assistance, water rates would need to double in three years and triple in five years. The City has been exploring and pursuing multiple opportunities to offset this “budget buster” expense. Even with the assistance secured to date, water rates would still increase some 158% between 2024 and 2028. Updates State Capital Budget:The City submitted PFAS Treatment & Raw Water Lines for consideration in the State’s 2024 Capital Budget due to the budget-busting expense, the fact that the treatment is to remove contamination/pollution caused by others, and the suddenness of new regulations preventing financial planning. Sen. Seeberger and Rep. Hudella indicated support and introduced SF 3161 and HF 3115. The legislative session ended May 20, 2024, without passage of a bonding bill. In October 2024, we met with Sen. Pappas, Chair of the Senate Capital Investment Committee, to provide an update on our project and funding needs. The City Council approved a resolution of support on December 2, 2024 and a new state application has been submitted. Clean and safe drinking water was identified as the City Council’s number one legislative priority during its workshop on November 16, 2024. With recent approval of a $3M Emerging Contaminants Grant, we have been able to reduce the amount of this bonding request to $16.6M for the eastern WTP. Both Sen. Seeberger and Rep. Dippel have indicated strong support for our project. Rep. Dippel has prepared four bills: one seeking to designate Hastings as eligible for funding through the East Metro’s 2018 3M Settlement and one seeking funding through the Clean Water Fund of the Legacy Fund. The other two seek to fund the remaining $16.6M costs for the Eastern WTP, one through the capital budget and the other as a general cash appropriation; Sen. Seeberger has signed on to these two. On February 27, we had a hearing with the House Capital Investment Committee on the capital budget request (HF1192). On March 13, we met Senate Majority Leader Murphy, Senators Seeberger and Pappas (Chair of Senate Capital Investment Committee), and staff to review water rates, grants, East Metro 3M Settlement funds, financial aspects, and construction schedule of our project.We are presently updating our project and financial information with Minnesota Management and Budget (MMB). It is vitally important to have support from both of our legislators and that they work together. Congressionally Directed Spending / Community Project Funding: In April 2024, we submitted requests of Senator Klobuchar, Senator Smith, and Representative Craig for $10.3M (50%) of the eastern WTP. This amount is higher than typically funded. All three advanced our request to their respective Appropriations Committees; however, it was not approved through the Senate Appropriations Committee. As it worked through “mark up” by the House Appropriations Committee, it was proposed at a little over $1M. In the end, in mid- March, Congress adopted a continuing resolution that funded no Community Project Funding. In April 2025, we submitted a new application for $10.8M (50%)the western WTP. PPL/IUP: In 2023, the City submitted the project for the State’s Drinking Water Revolving Fund Project Priority List (PPL). On May 1, 2024, we re-submitted to correct errors and to recognize new EPA regulations of MCLs for PFAS, which will result in our ranking at or near the top of the list. Additionally, we submitted the first two phases of the project for the Intended Use Plan (IUP) in June 2024. We are preparing to submit the western WTP in June 2025. The Public Facilities Authority has listed the eastern WTP is ranked #2 and central WTP appears ranked tied at #13 on the PPL and both projects are in the “fundable –emerging contaminants” category. Both projects are scheduled to receive $3M Emerging Contaminants Grant ($6M total). Although this is through a state agency, the funds have originated as federal assistance. The PFA does not believe this will pose a problem, but it does raise some uncertainty. During our April 7 workshop, the City Council discussed utilizing the Drinking Water Revolving Fund to the balance (estimated at $5M to $8M) of the central WTP. Using the low-interest DWRF will save about $1M in interest over the next 20 years. Approval of PFA loan application on City Council agenda May 5. Additionally, we are updating IUP applications for all three WTPs to match construction schedule; this also includes an application for the Emerging Contaminants Grant toward the western WTP. Water Rates: With budget planning for 2025 (including workshops on June 3, June 17, and September 3, 2024), we discussed potential water rate increases, phasing, and timing. During the preliminary budget planning, we anticipated a 37.3% increase in water rates for 2025. During our October 21, 2024, meeting, following Co-Trustee approval of 3M Settlement Funds for Well #5, the City Council supported a two-step water rate increase in 2025, with a 10% increase effective January 1, 2025, and a second increase to be determined effective July 1, 2025. On an average residence using 15,000 gallons per quarter, the January increase would be about $4 per quarter. City Council approved the January increase on December 16, 2024. Additional increases are expected to coincide with construction of each of the three WTPs. Even with the assistance secured to date, water rates would still increase some 158% between 2024 and 2028. The City Council had workshop April 7 to discuss financing the City’s portion of the central WTP. City Council favored an additional 10% water rate increase effective July 1. This covers our current projected gap as well as provides some cushion for uncertainty. The ordinance for this water rate increase is on the May 5 agenda for second reading and adoption. We are communicating this increase to our residents and businesses through mailings, newsletters, and social media. 3M Settlement: The 2018 Settlement Agreement provides grant money for drinking water projects “in the East Metropolitan Area.” It is not limited to any specifically named cities or townships and does not require a direct connection to one of the 3M disposal sites. Similarly, Minnesota’s Conceptual Drinking Water Supply Plan does not require a direct connection to one of the disposal sites. However, the State’s Co-Trustees (MPCA and DNR) have stated that a direct connection should be required and has previously excluded Hastings from funding under the Settlement Agreement. Although we disagree with the Co-Trustees’ interpretation, we value our relationship with them and have endeavored to not have this disagreement come between our mutual efforts. The MPCA has been helpful in conducting Phase I and II environmental site assessments, requesting 3M to conduct additional investigation of its disposal site and hydraulic modeling in the Hastings area, and has awarded a planning and design grant for Hastings to begin design engineering for the treatment plants. Additionally, the 2007 Consent Order does require a direct connection to one of the East Metro disposal sites. This is extra important since the Co-Trustees have acknowledged that the Settlement Funds will run out in state fiscal year 2027 (calendar year 2026) as they cover currently proposed East Metro projects, so they will be transitioning to the Consent Order in the next couple years. In early March, an email from the Co-Trustees indicated that 3M questions whether East Metro projects have been “reasonable and necessary” under the Settlement Agreement, objects to transitioning to the Consent Order, and has initiated mediation for dispute resolution.Additional information is anticipated in May. To date, the environmental studies have resulted in several lines of evidence of a connection of Well #5 to the 3M Cottage Grove site, specifically: updated Minnesota Geological Survey mapping of a fault in the bedrock, presence of HQ115/TFSI in Well #5, and additional water composition and PFOA chemical analyses. In October 2024, the Co-Trustees agreed that there is a connection between Well #5 and the 3M Cottage Grove site and that the costs associated with Well #5 (to be treated with the central WTP) would be eligible for funding under the 2018 Settlement Agreement. We estimate the costs associated with Well #5 to be about $15M, but that amount has not yet been finalized by the Co-Trustees. In November 2024, we submitted our first application for Settlement funds to cover the cost of land purchase and business relocation necessary for the central WTP. The City Council approved the grant agreement at its January 21 meeting.As the plans are now reaching 90% completion and going to bid later this month, we will soon submit application for Settlement funds to cover construction costs allocated to Well #5. In the meantime, the environmental investigations will continue as planned by the MPCA to determine connection and eligibility for the City’s other wells. Central Water Treatment Plant: During our October 21, 2024, meeting, the City Council agreed to flip the sequence of the construction schedule: proceed with the central WTP in 2025 and delay the eastern WTP until 2026. Proceeding with the WTP that has significant outside funding has two major advantages. 1) It would mean a smaller water rate increase for our residents and businesses. 2) It gives us additional time to seek state bonding, grants, and/or direct connection to 3M Cottage Grove before proceeding with the other WTPs. At our November 18, 2024, meeting, the City Council approved a purchase agreement for 1292 North Frontage Road as the site for the central WTP. This location is in a non-residential area, is located next door to the existing nitrates treatment facility and ground storage reservoir, and has lower incremental costs than other sites. Additionally, timing and ability to proceed without delay were important considerations. In January, a Phase I environmental review was conducted and found record of a 2005 petroleum spill at the site. In February, a Phase II environmental assessment was approved to determine the extent of potential contamination. The Phase II did not identify impacts that require further actions or additional investigation. A construction contingency plan will be included in the bidding documents for the project in case previously unidentified contamination is encountered during construction. Closing on the property occurred April 18. The businesses at this site (Carbone’s Pizza and Stacy’s Stars) have been given a required 90-day notice that they will need to vacate the property by June 30. On April 7, City Council approved a lease-back agreement for management of the property during the interim. SRF Consulting has been assisting with business relocation analysis for the two businesses. Under state law, some costs associated with the relocation of these businesses will be borne by the project. Both have indicated strong interest in continued operations in Hastings. As design reaches 60%, we continue to meet with MPCA staff to ascertain elements of the project attributable to Well #5 and eligible for funding through the East Metro 3M Settlement. As the plans are now reaching 90% completion and going to bid later this month, we will soon submit application for Settlement funds to cover construction costs allocated to Well #5. At present, we anticipate final design could be completed and ready to bid in May 2025, with construction commencing in July/August. On March 25, we held a public presentation about the central WTP and raw water lines for neighboring residents and businesses to learn about project scope and schedule. This also proved a good opportunity for them to give feedback on the upcoming project. A copy of this presentation, as well as other updates, are being posted on the City website to maintain public transparency. During our April 7 workshop, City Council discussed several financial aspects for the central WTP. The project cost is increasing, now estimated at $30.8M instead of the $26.7M for the central WTP. Some of the increase is attributable to purchasing land for the site and running raw water lines to the site. We do have a contingency factor included in the cost estimate, which will hopefully help to true up the estimate with actual bids prices this summer. We do not have updated estimates for the eastern or western WTPs. During the April 7 workshop, City Council favored pulling the nitrates treatment from central WTP. If we build the “footprint” to provide space in the building to later add the treatment system, we can cut $3.1M from the project cost. The nitrate levels in these wells (3, 5, and 7) are at levels that require monitoring, and we currently do partial treatment on wells 3 and 5, but are not in imminent need for nitrates treatment now. On the other hand, note that the eastern WTP will need to keep the nitrates treatment as those wells are much closer and occasionally exceeding the threshold. Financial Impact: Not applicable Committee Discussion: Not applicable Attachments: Not applicable