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HomeMy WebLinkAbout20260105 - CC PacketCITY OF HASTINGS CITY COUNCIL AGENDA Monday, January 5,2026 7:00 p.m. I.CALL TO ORDER II.PLEDGE OF ALLEGIANCE III.ROLL CALL IV.DETERMINATION OF QUORUM Proclamation: Pastor Jim Bzoskie V.APPROVAL OF MINUTES Approve Minutes of the City Council regular meeting on December 15,2025. 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.Resolution: Accept Donation from Jeffrey and Stephanie Anderson to the Fire Department 3.Resolution: Accept Donation to LeDuc Historic Estate 4.Resolution: Approve Electric Funds Transfer Transactions 5.Resolution: Approve Annual Banking Depository 6.Resolution: Authorize Designee Signatures for Purposes of Banking Transactions 7.Resolution: Designate Official Newspaper 8.Resolution: New Massage Therapy Establishment License for Mindful Motion Pilates, Wellness and Ayurveda 9.Resolution: Commercial Waste Hauler License Renewal for Keith Krupenny & Son Disposal Service, Inc. dba Remackel Roll-Off Services 10.Declare Surplus Property and Authorize for Public Sale –Police Department 11.Approve 2026 Services Agreement with Blue Peak Consulting 12.Approve 2026-2028 Labor Agreement with International Association of Firefighters Union, Local 5113 (Firefighters) 13.Approve Pay Estimate No. 3 for Central WTP Raw Watermain Project –A1 Excavating LLC ($128,051.86) 14.2026 Legislative Priorities 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. 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 1.Hydroelectric Plant a.Authorize Signature: Letter of Intent b.Resolution: Disposal and Sale of the Hydroelectric Plant B.Parks and Recreation C.Community Development 1.Resolution: Approve 2026 CDBG Budget 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: Tuesday,January 20, 2026 7:00 p.m. Proclamation Recognizing the Contributions of Pastor James Bzoskie to the Hastings Community WHEREAS, Pastor James Bzoskie founded Cornerstone Bible Church in 1983 in the City of Hastings and faithfully served as its Senior Pastor; and WHEREAS, Pastor Bzoskie provided chaplain services to the Hastings Police and Fire Departments beginning in 1979, offering spiritual guidance, encouragement, and support on a weekly basis; and WHEREAS, Pastor Bzoskie also provided chaplain services to the Dakota County Sheriff’s Office and ministered to inmates at the Dakota County Jail, leading faith services and serving as a consistent beacon of hope; and WHEREAS, Pastor Bzoskie was known for always seeing the good in others, offering prayer to those in need, and serving the community as a compassionate and dedicated servant leader; and WHEREAS, Pastor Bzoskie was a devoted family man who took great pride in the children he raised with his wife, Charlie; and WHEREAS, Pastor Bzoskie was a cornerstone of the City of Hastings, demonstrating deep pride in the community he served by attending city events, offering prayer, and reminding residents of the values that contribute to a strong and vibrant City; NOW, THEREFORE, BE IT RESOLVED, by the Hastings City Council that January 10, 2026, is hereby proclaimed Pastor James Bzoskie Day, in honor of his lifelong service and selfless acts of kindness to the Hastings community. Mary D. Fasbender, Mayor 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 Hastings, Minnesota City Council Meeting Minutes December 15, 2025 The City Council of the City of Hastings, Minnesota met in a regular meeting on Monday, December 15, 2025 at 7:00 p.m. in the Council Chambers at Hastings City Hall, 101 East 4th Street, Hastings, Minnesota. Members Present: Mayor Fasbender, Councilmembers Beck, Haus, Lawrence, Leifeld, Pemble and Vihrachoff Members Absent: None Staff Present: City Administrator Dan Wietecha Assistant City Administrator Kelly Murtaugh City Attorney Greta Bjerkness Community Development Director John Hinzman Public Works Director Ryan Stempski Human Resources Generalist Megan Schlei Recognition of Milestone Employees 5 Years Ben Banitt Chris Eitemiller Ryan Haedt Kayla Jetter Zachary Knochenmus TJ Lucas Blaine Raway Dawn Skelly 10 Years Alan Gaylor Paige Marschall Bigler Quentin Nelson 15 Years Chad Jenson 20 Years Christina Gipson Joy Schroeder Dawn West 25 Years Jeremy Jacobson Natalie Judge Brenda McGrath Terry Meier Chris Weid Justin Wolfe 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 Recognition of Outgoing Commissioners Richard Smith, Heritage Preservation Commission Mark Borchardt, Heritage Preservation Commission Gino Messina, Planning Commission Rob Halberg, Planning Commission Gary Stevens, Public Safety Advisory Commission Dakota County Update, Commissioner Mike Slavik Approval of Minutes Mayor Fasbender asked if there were any additions or corrections to the minutes of the City Council regular meeting on December 1, 2025. Minutes were approved as presented. Comments from the Audience Chief Nate Siem, City of Farmington, visited to thank Chief Wilske and Commander Linscheid for their support for the service for Officer Pete Zajac held in this community. Commander Linscheid provided leadership as the incident commander for the law enforcement funeral, a complex event. Chief Siem also honored officers who stood guard with Officer Zajac until the funeral to honor his life and service to the community. Council Items to be Considered Councilmember Pemble motioned to add the City Hall Dome/HVAC Project Grant Extension to the Consent Agenda, seconded by Councilmember Haus. 7 Ayes, 0 Nays. Consent Agenda Councilmember Leifeld motioned to approve the Consent Agenda as presented, seconded by Councilmember Lawrence. 7 Ayes, 0 Nays 1. Pay Bills as Audited 2. Resolution No. 12-16-25: Accept Donation from the Hastings Rivertown Lions Club to the Police Department 3. Resolution No. 12-17-25: Accept Donation from the Miesville Lions Club to the Police Department 4. 2nd Reading\Adopt Ordinance: City Code Chapter 34.03 – Fee Schedule 5. Resolution No. 12-18-25: Approve 2026 Massage Therapist License Renewals 6. Resolution No. 12-19-25: Approve 2026 - 2028 Massage Therapy Establishment License Renewals 7. Resolution No. 12-20-25: Approve 2026 – 2027 Commercial Waste Hauler License Renewals 8. Approve 2026 City Council Committee Meeting Schedule 9. Approve 2026 Commission Meeting Schedule 10. Approve 2026 Community Waste Abatement Grant Agreement Contract 11. Authorize Signature: Memorandum of Understanding for a Collective Bargaining Agreement with Law Enforcement Labor Services, Inc., Local 249 12. Authorize Signature: Memorandum of Understanding for a Collective Bargaining Agreement with Law Enforcement Labor Services, Inc. Local 462 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 13. Reappoint Arts & Culture Commissioners – Hollenbeck, Read and Wagner 14. Reappoint HEDRA Commissioner – Goblirsch 15. Appoint Heritage Preservation Commissioner – Bafaro and Beck 16. Reappoint Heritage Preservation Commissioner – Alitz Edell and Bremer 17. Appoint Planning Commissioners – Montgomery and Silber 18. Reappoint Planning Commissioners – McGrath, Moes and DePalma 19. Reappoint Public Safety Advisory Commissioners – Auge, Nehring, Sherry 20. Approve Pay Estimate No. 3 for the Central Water Treatment Plant Project – Magney Construction, Inc. ($373,420.29) 21. Authorize Signature: Joint Powers Agreement and Addendum A with Independent School District 200 22. Approve City Hall Dome/HVAC Project Grant Extension Vacation of Public Easement – Central Water Treatment Plant (1292 North Frontage Rd.) a. Public Hearing b. Resolution: No. 12-21-25 Hinzman provided an overview of the request to adopt a resolution vacating an easement located at 1292 North Frontage Road. The property was acquired by the City for construction of the Central Water Treatment Plant. Existing buildings have been demolished and the site is replatted as Central Water Treatment Plant Campus. The proposed vacated easements are no longer necessary upon the replatting of the property. Hinzman indicated this request is similar to the vacation of easements on the November 17, 2025 agenda and is the last vacation of easement needed for the site. Mayor Fasbender opened the public hearing at: 7:57 p.m. Joe Mohrhauser, Fluegel’s Lawn Garden & Pet Supply, Inc. 1278 North Frontage Rd., posed questions about whether a sidewalk will be constructed on the property. Staff confirmed a sidewalk will be constructed along North Frontage Rd. Mayor Fasbender closed the public hearing at: 7:58 p.m. Councilmember Leifeld motioned to approve as presented, seconded by Councilmember Haus. 7 Ayes, 0 Nays. Disposal of the Hydroelectric Plant a. Public Hearing b. Resolution: No. 12-22-25 Stempski provided an overview of the request to conduct a public hearing and consider the resolution dispensing of the requirements of Minn. Stat. § 462.356 for the disposal of the Hydroelectric Plant. Stempski indicated the plant was constructed in 1985 and is an aging facility, requiring extensive annual costs which are over four times greater than average reported to the United States Energy Information Administration as identified through a engineering study completed in 2023. With increasing annual operating expenses, increasing maintenance costs of an aging facility, and reduced income, the plant is projected to lose $14 million over 25 years. City staff were directed by the Utilities Committee to begin the process of surrendering the Federal Energy Regulatory Commission (FERC) license to operate 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 the plant or transfer the facility to a private buyer. Stempski provided next steps for the process to dispose of the plant. Stempski indicated a public hearing is required by the City Charter, then Council will consider a resolution to dispense of the MN Statute requiring a review by the Planning Commission. At the January 5, 2026 meeting, a Letter of Intent and Resolution of Sale will be presented. Mayor Fasbender opened the public hearing at: 8:15 PM Mayor Fasbender closed the public hearing at: 8:16 PM Council discussion on the extent of the learning about the hydroelectric plant and expressed appreciation for those who came before this Council and made the decision to build the plant. Councilmembers expressed the realization that it is not in the best interests of the City to maintain the plant any longer and discussed future financial impacts. Council highlighted their commitment to fiscal responsibility, understanding that a private entity may be able to continue the energy production at the facility. Councilmember Pemble motioned to approve as presented, seconded by Councilmember Leifeld. 7 Ayes, 0 Nays. Accept Proposal and Authorize Work – Utilities Design, Highway 61 Project Stempski provided an overview of the request to authorize the City to enter into a contract with WSB for professional services to provide municipal utility design for the TH-61 Reconstruction Project. Stempski indicated the MnDOT design does not include sanitary sewer and watermain within the TH-61 corridor and that the existing public utilities are owned by the City and are in need of replacement. Stempski indicated the work is proposed on an hourly basis for an estimated total cost of $471,737, approximately 12% of the estimated utility construction costs. Council posed questions regarding the timeline of the TH 61 construction. Stempski reviewed the timeline for the sanitary sewer and watermain which is planned in 2028 with a goal of being able to complete some work of smaller bidding packages in 2027 to assist in getting the mainline work completed more efficiently. Council discussion on how a delay by MnDOT might affect the approval of this contract. Stempski indicated that if the project is delayed that these plans will not be affected and will be deployed when construction is set to begin. Councilmember Pemble motioned to approve as presented, seconded by Councilmember Lawrence. 7 Ayes, 0 Nays. Announcements • Visit this year's Hastings Holiday Lights Map on the City website to take a tour of homes and businesses with outdoor lights and decorations. • City Offices will be closed December 25 and 26 in observance of Christmas and January 1 and 2 for New Years. • Ever want to ice fish but don’t have the equipment or know-how? Join at Lake Rebecca Park on Saturday, January 10. No license is needed under our DNR waiver for this event, but registration 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 is required. Thank you for support from Carpenter Nature Center, Dirt Bullies Landscaping, VFW Post 1210, Striker Hudson, Fleet Farm, Hometown Ace Hardware, Get the Lead Out, and volunteer instructors. • Recycle your old lights with the Hastings Holiday Lights Drop Off Collection. Residents can drop-off their unwanted light strands at the Joint Maintenance Facility, 920 – 10th Street West, during the holiday season from November 15 to January 31. Meetings • Heritage Preservation Commission Meeting on Tuesday, December 16, 2025 at 7:00 p.m. – Cancelled • Parks and Recreation Commission Meeting on Wednesday, December 17, 2025 at 6:00 p.m. – Cancelled • Public Safety Advisory Commission Meeting on Thursday, December 18, 2025 at 6:30 p.m. – Cancelled • Administration Committee Meeting on Monday, December 22, 2025 at 7:00 p.m. – Cancelled • Planning Commission Meeting on Monday, December 22, 2025 at 7:00 p.m. – Cancelled • Parks and Recreation Committee Meeting on Monday, December 29, 2025 – Cancelled • City Council Workshop on Monday, January 5, 2026 at 5:30 p.m. • City Council Meeting on Monday, January 5, 2026 at 7:00 p.m. Councilmember Pemble motioned to adjourn the meeting at 8:32 PM, seconded by Councilmember Vihrachoff. Ayes 7, Nays 0. ___________________________ ____________________________ Kelly Murtaugh, City Clerk Mary D. Fasbender, Mayor City Council Memorandum To: Mayor Fasbender & City Council Members From: Connie Lang – Accountant Date: 12/31/2025 Item: Disbursements Council Action Requested: Staff requests: Council review of November 2025 CC payments. Council review of weekly routine disbursements issued 12/16/2025, 12/23/2025, and 12/30/2025. Council approval of routine disbursements, capital purchases and employee reimbursements to be issued 01/06/2026. 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: November 2025 CC Payments $ 33,584.06 Disbursement checks, ACH issued on 12/16/2025 $ 373,420.29 Disbursement checks, ACH issued on 12/23/2025 $ 236,970.88 Disbursement checks, ACH issued on 12/30/2025 $ 184,715.74 Disbursement checks, ACH to be issued on 01/06/2026 $ 34,590.70 Advisory Commission Discussion: N/A Council Committee Discussion: N/A Attachments: ● Council Reports VIII-01 VIII-01 VIII-01 VIII-01 VIII-01 VIII-01 VIII-01 VIII-01 VIII-01 VIII-01 VIII-01 VIII-01 VIII-01 VIII-01 VIII-01 VIII-01 VIII-01 VIII-01 VIII-01 VIII-01 City Council Memorandum To: Mayor Fasbender & City Council Members From: John Townsend, Fire Chief Date: January 5, 2026 Item: Accept a Donation from Jeffrey & Stephanie Anderson Council Action Requested: Council is asked to accept a donation in the amount of $200.00, made to the fire department by Jeffrey & Stephanie Anderson, and to adjust the fire donation account #213-2100- 5815 in the same amount. Background Information: Jeffrey & Stephanie Anderson made this donation, based on the exceptional and outstanding services provided to our town and the surrounding area, to be used towards the current needs of the fire department and ambulance service. Financial Impact: Increase fire donation account by 200.00 Advisory Commission Discussion: N/A Council Committee Discussion: N/A Attachment: Resolution VIII-02 CITY OF HASTINGS DAKOTA COUNTY, MINNESOTA RESOLUTION ___________ A RESOLUTION EXPRESSING ACCEPTANCE OF AND APPRECIATION OF A DONATION TO THE HASTINGS FIRE DEPARTMENT WHEREAS, Jeffrey & Stephanie Anderson have made a donation to be designated to the fire department; and WHEREAS, the City Council is appreciative of the donation and commends Jeffrey & Stephanie Anderson for their civic efforts, NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Hastings, Minnesota; That the donation is accepted and acknowledged with gratitude; and Adopted this 5th day of January, 2026. ________________________________ Mary Fasbender, Mayor Attest: ____________________________ Kelly Murtaugh, City Clerk VIII-02 City Council Memorandum To: Mayor Fasbender & City Councilmembers From: Chris Eitemiller, Finance Manager & Ashley DeBernardi, Assistant Finance Manager Date: January 5, 2026 Item: Donation to the LeDuc Historic Estate Council Action Requested: Accept donation of $3,500 from an anonymous donor to support the LeDuc Historic Estate Maintenance Background Information: The anonymous donor is interested in donating $3,500 to the LeDuc Historic Estate to assist with ongoing maintenance expenses. Financial Impact: Positive Advisory Commission Discussion: None. Council Committee Discussion: None. Attachments: Resolution VIII-03 CITY OF HASTINGS DAKOTA COUNTY, MINNESOTA RESOLUTION _____________ A RESOLUTION EXPRESSING ACCEPTANCE OF AND APPRECIATION OF A DONATION TO THE LEDUC HISTORIC ESTATE WHEREAS,an anonymous donor has donated to the LeDuc Historic Estate $3,500; and WHEREAS,this donation will be used to offset ongoing maintenance expenses at the LeDuc Historic Estate WHEREAS,the City Council is appreciative of the donation and commends the anonymous donor for their civic efforts, NOW, THEREFORE BE IT RESOLVED,by the City Council of the City of Hastings, Minnesota; 1.That the donation is accepted and acknowledged with gratitude; and 2.That the donation will be appropriated for the LeDuc Historic Estate as designated; and 3.That the donation will assist the LeDuc Historic Estate's ongoing maintenance. Adopted this 5th day of January 2026, _______________________________ Mary Fasbender, Mayor Attest: _____________________ Kelly Murtaugh, City Clerk VIII-03 CITY OF HASTINGS DAKOTA COUNTY, MINNESOTA RESOLUTION _____________ A RESOLUTION ALLOWING ELECTRONIC FUNDS TRANSFER TRANSACTIONS WHEREAS,the banking industry has promoted electronic funds transfer to reduce paper transactions, move resources more rapidly and respond to customer demands; and WHEREAS, Minnesota State Statute §471.38 subdivision 3 defines electronic funds transfer as the process of value exchange via mechanical means without the use of checks, drafts, or similar negotiable instruments; and WHEREAS, Minnesota State Statues §471.381 states that payment of claims, obligations and investment transactions of a statutory city may be made by warrant, check, or all forms of electronic or wire funds transfer and that a statutory city may accept payment by use of a credit card, debit card, or all forms of electronic or wire funds transfer; and WHEREAS, the Hastings City Council acknowledges this technology and the need for electronic fund transfer transactions both coming into and going out of the city bank and investment accounts; and NOW, THEREFORE,BE IT RESOLVED,the City of Hastings Finance Manager and Assistant Finance Manager or Finance Manager Designee may accept and make payment by electronic funds transfer and wire transfer provided that these electronic funds transfer and wire transfer transactions meet all of the required policies of the financial institutions the City of Hastings transacts with. ADOPTED BY THE CITY COUNCIL OF THE CITY OF HASTINGS, THIS 5th DAY OF JANUARY 2026. ______________________________ Mary Fasbender, Mayor ATTEST: _____________________________________ Kelly Murtaugh, City Clerk VIII-04 CITY OF HASTINGS DAKOTA COUNTY, MINNESOTA RESOLUTION _______________ A RESOLUTION DESIGNATING THE OFFICIAL BANKING DEPOSITORIES AND APPOINTING FINANCE MANAGER AS DESIGNATED AUTHORITY FOR APPROVAL WHEREAS,State of Minnesota Statutes § 118 sets forth the procedures for the deposit of Public Funds and it is policy of the Hastings City Council to authorize the Finance Manager to annually designate a bank as the official depository for the city funds and manage the collateral pledged to such funds; and WHEREAS, Merchants Bank of Hastings is now the official depository; and WHEREAS, State of Minnesota Statues §118 sets forth the requirements for the Designation of Depositories, and the insuring and/or securing of deposits; and WHEREAS, it has also been the policy of the Hastings City Council to delegate the authority to the Finance Department to designate the official depositories for banking needs and for investment purposes; and NOW, THEREFORE BE IT RESOLVED,that the Hastings City Council does hereby delegate the authority to the Finance Manager to designate the necessary investment depositories for 2026; and BE IT FURTHER RESOLVED,that the Finance Manager or the Finance Manager’s designee of the City of Hastings is hereby designated as the approval authority for the acceptance and release of all collateral to be held in conjunction with city funds on deposit with authorized instructions. ADOPTED BY THE CITY COUNCIL OF THE CITY OF HASTINGS, THIS 5th DAY OF JANUARY, 2026. ______________________________ Mary Fasbender, Mayor ATTEST: _____________________________________ Kelly Murtaugh, City Clerk VIII-05 CITY OF HASTINGS DAKOTA COUNTY, MINNESOTA RESOLUTION ______________ A RESOLUTION FOR THE CITY OF HASTINGS AUTHORIZING INDIVIDUALS AS DESIGNEE SIGNATURES FOR PURPOSES OF BANKING TRANSACTIONS WHEREAS,the City of Hastings conducts many banking transactions throughout the year with a variety of financial institutions; and WHEREAS, most of these financial institutions require some written notification as to the authorized signatures for the City; and NOW, THEREFORE BE IT RESOLVED,that the Hastings City Council does hereby authorize the following individuals as approved for the City’s checking account(s):Mary Fasbender, Mayor; Dan Wietecha, City Administrator; and Chris Eitemiller, Finance Manager; and BE IT FURTHER RESOLVED, that the Hastings City Council does hereby authorize Finance Manager Chris Eitemiller and Assistant Finance Manager Ashley DeBernardi (in the absence of the Finance Manager) to conduct such other necessary banking transactions as necessary (wire transactions, ACH transactions, etc.) and to conduct City business with other financial institutions including to manage the financial transactions that relate to the sale of Renewable Energy Credits (REC’s). ADOPTED BY THE CITY COUNCIL OF THE CITY OF HASTINGS, THIS 5th DAY OF JANUARY, 2026. ______________________________ Mary Fasbender, Mayor ATTEST: _____________________________________ Kelly Murtaugh, City Clerk VIII-06 City Council Memorandum To: Mayor Fasbender & City Councilmembers From:Emily King, Deputy City Clerk Date: January 5, 2026 Item: Designation of Official Newspaper Council Action Requested: Adopt the attached resolution designating the Hastings Journal as the official City newspaper. Background Information: The City Charter, Section 7.03, dictates that the City Council may annually designate the official City newspaper. The term “may” is nonrestrictive, implying the City could designate a paper either more or less frequently than annual, including the authority to change official newspapers mid-year. Financial Impact: Anticipated publication costs are budgeted. Advisory Commission Discussion: N/A Council Committee Discussion: N/A Attachments: •Resolution VIII-07 CITY OF HASTINGS DAKOTA COUNTY RESOLUTION _______________ A RESOLUTION DESIGNATING OFFICIAL NEWSPAPER WHEREAS, it is necessary for the Hastings City Council to designate a newspaper of local general circulation as the official legal newspaper for the City; WHEREAS,the Hastings Journal continues to meet all necessary requirements for designation; NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Hastings, Minnesota that the Hastings Journal is designated as the official newspaper for the City of Hastings. Adopted on this 5th day of January, 2026. _______________________________ Mary D. Fasbender, Mayor Attest: ____________________________ Kelly Murtaugh, City Clerk VIII-07 City Council Memorandum To: Mayor Fasbender & City Councilmembers From: Emily King, Deputy City Clerk Date: January 5, 2026 Item: Approve New Massage Therapy Establishment License for Mindful Motion Pilates, Wellness and Ayurveda , 1266 North Frontage Rd. Council Action Requested: Consider the attached resolution approving a new Massage Therapy Establishment License for Mindful Motion Pilates, Wellness and Ayurveda, 1266 North Frontage Rd., for the current licensing period ending on December 31, 2028. Background Information: The licensing period for a massage therapy establishment is January 1 of the first year through December 31 of the third year. As this application was received towards the beginning of the licensing period, the license will be good through December 31, 2028. City Code Chapter 116.04, subd. D, requires City staff to notify property owners within 350 feet of new massage therapy establishment license applications within the City of Hastings. Staff has not received any comments regarding the application. The City has received and reviewed the application for a massage therapy establishment license for Mindful Motion Pilates, Wellness and Ayurveda, 1266 North Frontage Rd., for the current licensing period ending on December 31, 2028. Approvals and issuance of licenses are contingent upon the City receiving all license fees, required documents, licensing of all employed massage therapists, successfully completing a criminal history background investigation conducted by the Hastings Police Department. Financial Interest: All associated fees have been paid. Advisory Commission Discussion: N/A Council Committee Discussion: N/A Attachments: • Resolution VIII-08 CITY OF HASTINGS COUNTIES OF DAKOTA RESOLUTION _______________ APPROVING A NEW MASSAGE THERAPY ESTABLISHMENT LICENSE FOR MINDFUL MOTION PILATES, WELLNESS AND AYURVEDA, 1266 NORTH FRONTAGE RD. WHEREAS, the application for a massage therapy establishment license for Mindful Motion Pilates, Wellness and Ayurveda, 1266 North Frontage Rd. has been received; and WHEREAS, approval and issuance of license is contingent upon the City receiving all license fees, required documents, licensing of employed massage therapists, successfully passing a criminal history background investigation conducted by the Hastings Police Department. NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Hastings that the new massage therapy establishment license application for Mindful Motion Pilates, Wellness and Ayurveda, 1266 North Frontage Rd., is approved. Adopted this 5th day of January, 2026. ______________________________ Mary D. Fasbender, Mayor Attest: _______________________________ Kelly Murtaugh, City Clerk VIII-08 City Council Memorandum To: Mayor Fasbender & City Councilmembers From:Emily King, Deputy City Clerk Date: January 5, 2026 Item: 2026-2027 Commercial Waste Hauler License Renewal for Keith Krupenny & Son Disposal Service, Inc. dba Remackel Roll-Off Services Council Action Requested: Adopt the attached resolution approving the 2026 –2027 Commercial Waste Hauler License Renewal for Keith Krupenny & Son Disposal Service, Inc. dba Remackel Roll-Off Services. Background Information: City Ordinance 50.07 states that commercial waste hauler licenses expire December 31 of the odd year, regardless of when the license was first issued. The two-year licensing period for a commercial waste hauler starts on January 1 of an even numbered year through December 31 of the following odd numbered year. The City received the renewal application after the original deadline, so it was not able to be included with the other renewals. The application for a commercial waste hauler license will be active for the licensing period ending on December 31, 2027. Approvals and issuance of license are contingent upon the City receiving all required forms, documents and licensing fees. Financial Impact: N/A Advisory Commission Discussion: N/A Council Committee Discussion: N/A Attachments: •Resolution VIII-09 CITY OF HASTINGS DAKOTA COUNTY, MINNESOTA RESOLUTION ______________ A RESOLUTION APPROVING 2026 –2027 COMMERCIAL WASTE HAULER LICENSE RENEWAL FOR KEITH KRUPENNY & SON DISPOSAL SERVICE, INC. DBA REMACKEL ROLL-OFF SERVICES WHEREAS, the City has received and reviewed applications for renewal of commercial waste hauler license for Keith Krupenny & Son Disposal Service, Inc. dba Remackel Roll-Off Services; and WHEREAS, approval and issuance of licenses contingent upon the City receiving all required forms, documents, and license fees. NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Hastings that the commercial waste hauler license renewal for Keith Krupenny & Son Disposal Service, Inc. dba Remackel Roll-Off Services is approved for the licensing period ending on December 31, 2027. ADOPTED BY THE CITY COUNCIL OF HASTINGS, MINNESOTA THIS 5TH DAY OF JANUARY, 2026. ____________________________ Mary D. Fasbender, Mayor ATTEST: ___________________________ Kelly Murtaugh, City Clerk VIII-09 City Council Memorandum To: Mayor Fasbender & City Council Members From:David D. Wilske, Chief of Police Date:January 5th, 2026 Item:Sale of Surplus Property Council Action Requested: Declare vehicle as surplus property and authorize for public sale. Background Information: The City of Hastings Police Department currently has one forfeited vehicle seized through forfeiture proceedings. This vehicle has been cleared for sale/destruction with the proceeds to be applied to the Department's forfeiture account in accordance with Minnesota law. Upon declaration of the vehicles as excess/surplus property, the vehicle will be made available for public sale via a commercially available online auction service or destroyed. The following vehicle is to be declared surplus/excess property and authorized for sale/destruction: 2012 Chevrolet Silverado 1GCRKSE72CZ205659 Forfeiture Financial Impact: Positive financial impact Advisory Commission Discussion: None Council Committee Discussion: None Attachments: None VIII-10 City Council Memorandum To: Mayor Fasbender & City Council Members From:John Townsend, Fire Chief Date: January 5, 2026 Item: Approve Services Agreement with Blue Peak Consulting Council Action Requested: Approve services agreement with Blue Peak Consulting. This agreement provides mental health and resiliency services with PAR 360. Background Information: This agreement provides continuation of mental health resources, training, and services to the cities fire department staff. Fire and EMS personnel are subject to a significant amount of challenges that impact their mental health and wellness. The PAR 360 program provides: consultation for all levels of department leadership, resiliency training, specially trained mental health providers for staff in need of consultation, family support, department check-ins, and a consistent approach to the wellness of our staff. This program is an ongoing annual program. Financial Impact: Budgeted item-mental health budget and training budget. This is also eligible for some state reimbursement. Advisory Commission Discussion: N/A Council Committee Discussion: N/A Council Workshop: N/A Attachments: Agreement VIII-11 BLUE PEAK CONSULTING ORGANIZATIONAL SERVICES AGREEMENT This Event Agreement is entered into and effective as of this 1st day of January 2026 (the “Effective Date”), by and between the Hastings Fire Department (“Client”), having an address of 115 5th St W., Hastings, MN 55033 and Blue Peak Consulting (“Company”), having an address of 24 Luverne Ave, Minneapolis, MN 55419. In consideration of Client retaining Company to provide event services, it is agreed as follows: 1. SCOPE OF EVENT SERVICES Client hereby retains the Company to provide event services in the area of mental health and resilience at PAR360 from 01/01/26 until 12/31/26 (the “Event” of “Events”). (a) The services shall include the following: 1.Embedded Department Visits –Visits to the department once every five weeks; consultation, care, trainings, and support may be done during these visits. 2.Priority Care Coordination–Immediate expert assistance via a call line for referrals and resources. This can be conducted on site during embedded department visits or by phone when needed in between visits ensuring no one is left behind. 3.Individual Pre-Plan Meetings –Dedicated annual sessions for resilience pre-planning sessions with behavioral health providers familiar with firefighter challenges; these will be conducted on site during clinician visits. 4.Crisis Response –Response that focuses on building resiliency and communication after a traumatic event has occurred with department personnel; up to 40 hours that can be used annually. Additional hours needed that exceed 40 hours will be billed separately.* 5.Stress Management Modules–Online self-paced training modules for all department members. 6.Chief Consultation and Support –Ongoing direct line for Chiefs to mental health experts. Monthly Chief conference calls of all PAR360 member Chiefs to address concerns and issues unique to respective departments and provide networking and problem sharing/solving opportunities. (b) Additional services, beyond those described above, will require additional fees to be discussed and agreed upon by the parties. 2. CLIENT DUTIES (a)Compensation: In consideration for the services provided by Company to Client as set forth in paragraph 1 above, Client agrees to pay Company a total Event Fee of $14,826.24 (the “Event Fee”). Company’s obligation to render services hereunder is conditioned upon Client’s payment of said fee on a timely basis. The Event Fee was calculated as Follows: 44 Firefighters x $336.96 = $14,826.24 For 2026 VIII-11 BLUE PEAK CONSULTING *Additional crisis response hours that exceed 40 hours will be billed separately at $200 / hour. (b)The Event Fee shall be paid according to the following schedule: i.Total Event fee will be broken into two equal payments over the course of the contract (50%; or $7,413.12) of the total Event Fee ($14,826.24). ii.Invoices will be submitted on or close to the following dates and are due within 30 days of invoice date: a.January 1st, 2026 b.July 1st, 2026 A lump sum payment of remainder balance of Total Event Fee can be made at any time with no penalty. iii.Total Event Fee is based on a projected 44 personnel within the Hastings Fire Department at the time of 1.1.26. Client will provide Company with an active roster of personnel as of 1.1.26; any additional personnel above the 44 projected will be an additional $336.96 per individual. The additional cost will be added to the Total Event Fee on the last invoice submitted by Company and Client agrees to pay the additional amount if roster is above the projected 44 personnel. (b)Late Payments: All payments due under this Agreement will be considered late and in arrears if not paid within ten (10) days of the due dates specified in Paragraph 1(a) and will become subject to a late penalty fee of 2.5% of the balance owed plus interest calculated at the annualized rate of 18% per annum, or 1.5% compounded monthly, or the maximum allowed by law. (c)Late Payments: All payments due under this Agreement will be considered late and in arrears if not paid within ten (10) days of the due dates specified in Paragraph 1(a) and will become subject to a late penalty fee of 2.5% of the balance owed plus interest calculated at the annualized rate of 18% per annum, or 1.5% compounded monthly, or the maximum allowed by law. (d)Tools to be Provided by Client: Client agrees to provide all tools, information and documentation that may be required by the Company to effectively perform said responsibilities in connection with the performance of event services. (e)Travel Expenses: Client agrees to reimburse Company for travel expenses incurred by Company on Client’s behalf. These expenses include the following: airfare, transportation, all meals during the travel period and hotel (up to 2 nights). Both Client and Company will agree to the travel expenses prior to commencement. Company agrees to provide Client with a travel expense invoice, and Client agrees to make payment to Company within 60 days from the date of delivery of said travel expense invoice to Client. VIII-11 BLUE PEAK CONSULTING (f)Additional Client Duties: Client shall provide laptop, or other mechanism in which to project PowerPoint presentation materials, as well as a microphone and water for any in-person educational training events, at Client’s expense. 3.TERM This engagement shall commence on the Effective Date and shall continue through completion of the event services or cancellation by either party in accordance with paragraph 4. 4.CANCELLATION Client may cancel this Agreement for any reason by providing 30 days written notice to the Company. The Company will provide a 50% refund of the total Event Fee to Client, if cancellation is communicated to the Company within 30 days of the End of Subscription period. Client will not provide any refund to Client if cancellation is communicated to the Company in less than 30 days of the End of Subscription Period. Cancellation of this Agreement by Client will not extinguish Client’s obligation to pay the travel expenses specified in Paragraph 2(d) and incurred by Company prior to the cancellation date. Company may cancel this Agreement at any time for any reason by providing written notice to Client. In the event that Company cancels this Agreement, Company will provide a full refund of the Event Fee paid. 5.NO GUARANTEES Company cannot guarantee the outcome of event services and Company’s comments about the outcome are expressions of opinion only. Company makes no guarantees other than that the services described in Paragraph 1(a) shall be provided to Client in accordance with the terms of this agreement. Client acknowledges that Company cannot guarantee any results for event services and such outcomes are based on subjective factors that cannot be controlled by Company. 6. CONFIDENTIALITY (a)Client Information: Any and all Client information and data of a confidential nature, including but not limited to any and all design, creative, marketing, sales, operating, performance, know how, business and process information (hereinafter referred to as “Confidential Information”), shall be treated by Company in the strictest confidence and not disclosed to third parties or used by Company for any purpose other than for providing Client with the services specified hereunder without Client’s express written consent. Confidential Information shall not include any information which (a) becomes available to the public through no breach of confidentiality by Company, (b) was in Company’s possession prior to receipt from the disclosure, (c) is received by Company independently from a third party free to disclose such information, or (d) is independently developed by Company without use of the Client’s Confidential VIII-11 BLUE PEAK CONSULTING Information. Upon request, Company hereto will promptly return or destroy all documents containing Confidential Information and delete all electronic records of or containing the same. 7. INDEPENDENT CONTRACTORS (a)Independent Contractor Relationship: This Agreement shall not render Company an employee, partner, agent of or joint venturer with the Client for any purpose. Company is and will remain an independent contractor in its relationship to the Client. Company is or remains open to conducting similar tasks or activities for entities other than the Client and holds itself out to the public to be a separate business entity. Company shall retain sole and absolute discretion in the manner and means of carrying out the activities and responsibilities under this Agreement. Company shall be responsible to the ownership and management of the Client, but Company will not be required to follow or establish a regular or daily work schedule. Company will not rely solely on the equipment or offices of Client for completion of tasks and duties set forth pursuant to this Agreement. Any advice given to Company regarding services performed for the Client shall be considered a suggestion only, not an instruction. Client retains the right to inspect, stop or alter the work of Company to assure its conformity with this Agreement and Client needs. Company and Client agree to conform to any and all IRS tests necessary to establish and demonstrate the independent contractor relationship between Client and Company. (b)Taxes & Benefits: Company will be responsible for filing its own tax returns and to pay taxes in accordance with all provisions of applicable Federal and State law. Client shall not be responsible for withholding taxes with respect to Company’s compensation. Company shall have no claim against Client for vacation pay, sick leave, retirement benefits, social security, worker’s compensation, health or disability benefits, unemployment insurance benefits or employee benefits of any kind. 8.LIMITED LICENSE The Company hereby grants to Client a limited license to use Company’s name, photograph, and likeness in, and in connection with advertising and promotional materials to promote this singular event. The Company also grants the Client a limited license to record Client’s Event and use the audio and/or video recording of the Event after the event for any purpose, provided that attribution of the content of the video is given to Company and no derivative works are created therefrom without prior written consent of the Company. 9.FORCE MAJEURE Neither party is liable for failure or delay in performance of the party's obligations under said agreement if such failure or delay in performance is as a result of causes and/or circumstances beyond the parties reasonable control and without its fault or negligence, including but not limited to accident, illness, Acts of God (including fire, flood, earthquake, storm, hurricane, or other natural disaster) or of the Public Enemy, acts of war, acts of the government in its sovereign capacity, fires, floods, epidemics, quarantine VIII-11 BLUE PEAK CONSULTING restrictions, unusually severe weather, terrorist activities, nationalization, government sanction, blockage, embargo, labor dispute, strike, lockout or interruption or failure of electricity or telephone service. Should any such occurrence impede or delay travel and execution of any obligation under said agreement, every reasonable effort will be made by both parties to mitigate, modify or alter said agreement as to meet their stated and agreed upon obligations. No party is entitled to terminate this Agreement under Paragraph 3 (Term) in such circumstances, except by mutual consent and agreement in writing pursuant to the Force Majeure provisions. If a party asserts Force Majeure as an excuse for failure to perform the party's obligation, then the nonperforming party must prove that the party took reasonable steps to minimize delay or damages caused by foreseeable events, that the party substantially fulfilled all non-excused obligations, and that the other party was timely notified of the likelihood or actual occurrence of an event described in in this Paragraph 10. Should Force Majeure render the need for Company's services null and void, each party to this contract agrees to terminate the contract amicably and bear their own expenses incurred to date unless otherwise indicated or specified. 10.WARRANTIES (a)Company’s Warranties: Company represents, warrants and covenants that Company has full authority to enter into this Agreement and that all of the services, will be rendered using sound, professional practices and in a competent and professional manner by knowledgeable and qualified personnel. (b)Client’s Warranties: Client represents, warrants and covenants that Client has full authority to enter into this Agreement and has or will obtain, during all times relevant hereunder, all of the necessary consents, rights, licenses, clearances, releases or other permissions to lawfully consummate the transactions and lawfully discharge, in all material respects, each and every of Client’s obligations or duties set forth hereunder, whether performance is due now or hereafter during the Term. (c)EXCEPT FOR THE EXPRESS WARRANTIES PROVIDED THROUGHOUT THIS AGREEMENT, NEITHER PARTY MAKES ANY OTHER WARRANTIES, EXPRESS OR IMPLIED. 11.LIMITATION OF LIABILITY With regard to the services to be performed by the Company pursuant to the terms of this Agreement, the Company shall not be liable to Client, or to anyone who may claim any right due to any relationship with Client, for any acts or omissions in the performance of services on the part of the Company or on the part of the agents or employees of the Company, except when said acts or omissions of the Company are due to willful misconduct or gross negligence. The services provided by Blue Peak Consulting LLC DO NOT create a doctor-patient or therapist-patient relationship. Information provided DOES NOT create a doctor-patient or healthcare practitioner-patient relationship between you and Blue Peak Consulting LLC or its personnel. 12.EFFECT OF HEADINGS VIII-11 BLUE PEAK CONSULTING The subject headings of the paragraphs and subparagraphs of this Agreement are included for convenience only and shall not affect the construction or interpretation of any of its provisions. 13.ENTIRE AGREEMENT; MODIFICATION; WAIVER This Agreement constitutes the entire agreement between the parties pertaining to the subject matter contained in it and supersedes all prior and contemporaneous agreements, representations, and understandings of the parties. No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by all the parties. No waiver of any of the provisions of this Agreement shall be deemed, or shall constitute, a waiver of any other provision, whether or not similar, nor shall any waiver constitute a continuing waiver. No waiver shall be binding unless executed in writing by the party making the waiver. 14.NEUTRAL CONSTRUCTION This Agreement was prepared by Company and/or Company’s legal counsel. It is expressly understood and agreed that this Agreement shall not be construed against Company merely because it was prepared by its counsel; rather, each provision of this Agreement shall be construed in a manner which is fair to both parties. 15.COUNTERPARTS This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 16.ASSIGNMENT This Agreement shall be binding on, and shall inure to the benefit of, the parties to it and their respective heirs, legal representatives, successors, and assigns; provided, however, that Client may not assign any of its rights under this Agreement, except to a wholly owned subsidiary entity of Client. No such assignment by Client to its wholly owned subsidiary shall relieve Client of any of its obligations or duties under this Agreement. The Company may assign its rights under this Agreement and make use of third party independent contractors to provide services at its sole discretion. 17.NOTICES All notices, requests, demands, and other communications under this Agreement shall be in writing and shall be deemed to have been duly given on the date of service if served personally on the party to whom notice is to be given, or on the day after mailing if mailed to the party to whom notice is to be given, by first class mail, registered or certified, postage prepaid, and properly addressed as follows: To Company at: Blue Peak Consulting: 24 Luverne Ave, Minneapolis, MN 55419 VIII-11 BLUE PEAK CONSULTING To Client at: Hastings Fire Department, 115 5th St W., Hastings, MN 55033 Any party may change its address for purposes of this paragraph by giving the other parties written notice of the new address in the manner set forth above. 18.GOVERNING LAW; VENUE; MEDIATION; ARBITRATION This Agreement shall be construed in accordance with, and governed by, the laws of the State of Minnesota as applied to contracts that are executed and performed entirely in Minnesota. The exclusive venue for any court proceeding based on or arising out of this Agreement shall be Ramsey County, Minnesota. The parties agree to attempt to resolve any dispute, claim or controversy arising out of or relating to this Agreement by mediation, which shall be conducted under the then current mediation procedures of The CPR Institute for Conflict Prevention & Resolution or any other procedure upon which the parties may agree. The parties further agree that their respective good faith participation in mediation is a condition precedent to pursuing any other available legal or equitable remedy, arbitration, or other dispute resolution procedures. If the parties are unable to resolve their dispute in mediation, the dispute shall be settled by arbitration in accordance with the rules of the American Arbitration Association, and judgment upon the award rendered by the arbitrator(s) shall be entered in any court having jurisdiction thereof. 19.RECOVERY OF LITIGATION EXPENSES If any legal action or any arbitration or other proceeding is brought for the enforcement of this Agreement, or because of an alleged dispute, breach, default or misrepresent in connection with any of the provisions of this Agreement, the successful or prevailing party or parties shall be entitled to recover reasonable attorneys’ fees and other costs incurred in that action or proceeding, in addition to any other relief to which it or they may be entitled. 20.SEVERABILITY If any term, provision, covenant, or condition of this Agreement is held by an arbitrator or court of competent jurisdiction to be invalid, void or unenforceable, the rest of the Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated. VIII-11 BLUE PEAK CONSULTING 21.SIGNATURES IN WITNESS WHEREOF, the parties to this Agreement have duly executed it on the day and year first above written. Blue Peak Consulting City of Hastings Fire Department Signed: ____________________________________ Name: Margaret Gavian Title: Owner Date: _____________________________ Signed: ____________________________________ Name: _____________________________________ Title: _______________________________________ Date: ______________________________________ VIII-11 City Council Memorandum To: Mayor Fasbender & City Councilmembers From: Dan Wietecha, City Administrator Date: January 5, 2026 Item: 2026-2028 International Association of Firefighters Union, Local #5113 Firefighter’s Unit Council Action Requested: Approve the 2026-2028 contract for the Fire Fighters/Fire Inspector. Background Information: It is recommended that the Council approve the 2026-2028 collective bargaining agreement for the Local #5113, Firefighters Unit. The contract term is for January 1, 2026 – December 31, 2028. Proposed changes include: • 3.5% cost of living adjustment effective each year on January 1 for 2026, 2027, and 2028. Additional market adjustment of 4% on January 1 for each year of the contract. • The Paramedic stipend is converted from a specific dollar amount to 7% of firefighter’s base pay. • Clarify hours of employment and incorporate definition in MOU regarding alternate schedule. • Affirm uniform allowance as a specific dollar amount. • Retain MOU on Mental Health and Wellness program and overtime. • Add MOU regarding the premium split for the Mn Paid Leave program. All other provisions of the contract will remain unchanged. Financial Impact: Wage adjustments are included in the 2026 budget. Advisory Commission Discussion: N/A Council Committee Discussion: N/A Attachments: 2026-2028 International Association of Firefighters Union, Local #5113 Firefighter’s Unit Collective Bargaining Agreement VIII-12 1 LABOR AGREEMENT BETWEEN CITY OF HASTINGS AND IAFF Local 5113 FIREFIGHTER’S UNIT January 1, 2026 through December 31, 2028 VIII-12 2 TABLE OF CONTENTS Article I. Purpose of Agreement 3 Article II. Recognition 3 Article III. Definitions 3 Article IV. Employer Security 4 Article V. Employer Authority 4 Article VI. Union Security 5 Article VII. Employee Rights—Grievance Procedure 5 Article VIII. Savings Clause 7 Article IX. Seniority 7 Article X. Discipline 8 Article Xl. Constitutional Protection 8 Article XII. Hours of Employment 8 Article XIII. Legal Protection 8 Article XIV. Overtime 8 Article XV. Holidays 9 Article XVI. Education Instructional Time 10 Article XVII. Vacation 10 Article XVIII. Sick Leave and Other Leaves of Absence 11 Article XIX. Severance Pay 12 Article XX. Insurance 12 Article XXI. Injured on Duty 13 Article XXII. Uniforms 13 Article XXIII. Wages 13 Article XXIV. Waiver 14 Article XXV. Post-Retirement Health Care Savings Account 14 Article XXVI. Working Out of Classification 15 Article XXVII. Union Vacation Bank 15 Article XXVIII. Duration 15 VIII-12 3 LABOR AGREEMENT Between CITY OF HASTINGS And FIREFIGHTERS UNIT ARTICLE I. PURPOSE OF AGREEMENT This Agreement is entered into as of January 1, 2026 between the City of Hastings, hereinafter called the Employer, and the International Association of Firefighter’ Union, Local #5113, hereinafter called the Union. It is the intent and purpose of this Agreement to: 1.1 Establish procedures for the resolution of disputes concerning this Agreement’s interpretation and/or application; and 1.2 Place in written form the parties’ agreement upon terms and conditions of employment for the duration of this Agreement. The Employer and the Union through this Agreement shall continue their dedication to the highest quality fire service and protection to the residents of Hastings. Both parties recognize this Agreement as a pledge of this dedication. ARTICLE II. RECOGNITION 2.1 The Employer recognizes the Union as the exclusive representative, under the Minnesota Statutes, Section 179A.31, Subd. 3, for all fire personnel in the following job classifications: FIREFIGHTER/PARAMEDICS FIRE INSPECTOR 2.2 In the event the Employer and the Union are unable to agree as to the inclusion or exclusion of a new or modified job class, the issue shall be submitted to the Bureau of Mediation Services for determination. ARTICLE III. DEFINITIONS 3.1 Union: International Association of Firefighter Local # 5113 3.2 Employee: An employee of the City of Hastings. 3.3 Union Member: An employee belonging to International Association of Firefighter Local # 5113. 3.4 Department: The City of Hastings Fire & EMS Department. VIII-12 4 3.5 Employer: The City of Hastings. 3.6 Fire Chief: The Fire and Emergency Medical Services Director for the City of Hastings. 3.7 Union Officer: A member appointed by the International Association of Firefighter Local # 5113. 3.8 Strike: Concerted action in failing to report for duty, the willful absence from one’s position, the stoppage of work, slowdown, or abstinence in whole or in part from the full, faithful and proper performance of the duties of employment for the purposes of inducing, influencing or coercing a change in the conditions or compensations or the rights, privileges or obligations of employment. 3.9 3.10 Probationary Period: All new, regular employees will serve a twelve (12) month probationary period. ARTICLE IV. EMPLOYER SECURITY 4.1 The Union agrees that during the life of this Agreement, it will not cause, encourage, participate in or support any strike, slowdown or other interruption of or interference with the normal functions of the Employer. 4.2 Any employee who engages in a strike may have their appointment or employment terminated by the Employer effective the date the violation first occurs. Such termination shall be effective upon written notice served upon the employee. An employee who is absent from any portion of his/her work assignment without permission, or who abstains wholly or in part from the full performance of their duties without permission from the Employer on the date or dates when a strike occurs is prima facie presumed to have engaged in a strike on such date or dates. An employee who knowingly strikes and whose employment has been terminated for such action may, subsequent to such violation, be appointed or reappointed or employed or re-employed, but the employee shall be on probation for two (2) years with respect to such civil service status, tenure or employment, or contract of employment, as they may have theretofore been entitled. No employee shall be entitled to any daily pay, wages or per diem for the days on which they engage in a strike. ARTICLE V. EMPLOYER AUTHORITY 5.1 The Employer retains the full and unrestricted right to operate and manage all manpower, facilities, and equipment; to establish functions and programs; to set and amend budgets; to determine the utilization of technology; to establish and modify the organizational structure; to select, direct, and determine the number of personnel; to establish work schedules, and to perform any inherent managerial function not specifically limited by this Agreement. 5.2 Any term and condition of employment not specifically established or modified by this Agreement shall remain solely within the discretion of the Employer to modify, establish, or eliminate. ARTICLE VI. UNION SECURITY VIII-12 5 6.1 The Employer shall deduct from the wages of employees who authorize such a deduction in writing an amount necessary to cover monthly dues, or a “fair share” deduction, as provided in Minnesota State Statute 179.65, Subd. 2, if the employee elects not to become a member of the Union. Such monies shall be remitted as directed by the Union. 6.2 The Union may designate employees from the bargaining unit to act as a steward and an alternate and shall inform the Employer in writing of such choice and changes in the position of steward and/or alternate. 6.3 The Employer shall make space available on the employee bulletin board for posting Union notice(s) and announcement(s). 6.4 The Union agrees to indemnify and hold the Employer harmless against any and all claims, suits, order, or judgments brought or issued against the Employer as a result of any action taken or not taken by the Employer under the provisions of this Article. Article VII. Employee Rights—Grievance Procedure 7.1 Definition of a Grievance. A grievance is defined as a dispute or disagreement as to the interpretation or application of the specific terms and conditions of this Agreement. 7.2 Union Representatives. The Employer will recognize representatives designated by the Union as the grievance representatives of the bargaining unit having the duties and responsibilities established by this Article. The Union shall notify the Employer in writing of the names of such Union representatives and of their successors when so designated, as provided by Section 6.2 of this Agreement. 7.3 Processing of a Grievance. It is recognized and accepted by the Union and the Employer that the processing of grievances as hereinafter provided is limited by the job duties and responsibilities of the employees and shall therefore be accomplished during normal working hours only when consistent with such Employee duties and responsibilities. The aggrieved employee and a Union representative shall be allowed a reasonable amount of time without loss in pay when a grievance is investigated and presented to the Employer during normal working hours provided that the employee and the Union representative have notified and received the approval of the designated supervisor who has determined that such absence is reasonable and would not be detrimental to the work of the Employer. 7.4 Procedure. Grievances, as defined in Section 7.1, shall be resolved in conformance with the following procedure: Step 1. An employee claiming a violation concerning the interpretation or application of this Agreement shall, within twenty-one (21) calendar days after such alleged violation has occurred, present such grievance to the employee’s supervisor as designated by the Employer. The Employer-designated representative will discuss and give an answer to such Step 1 grievance within ten (10) calendar days after receipt. A grievance not resolved in Step 1 and appealed to Step 2 shall be placed in writing setting forth the nature of the grievance, the facts on which it is based, the provision or provisions of the Agreement allegedly violated, the remedy requested, and shall be appealed to Step 2 within ten (10) calendar days after the VIII-12 6 Employer-designated representative’s final answer in Step 1. Any grievance not appealed in writing to Step 2 by the Union within ten (10) calendar days shall be considered waived. Step 2. If appealed, the written grievance shall be presented by the Union and discussed with the Employer-designated Step 2 representative. The Employer-designated representative shall give the Union the Employer’s Step 2 answer in writing within ten (10) calendar days after receipt of such Step 2 grievance. A grievance not resolved in Step 2 may be appealed to Step 3 within ten (10) calendar days following the Employer-designated representative’s final Step 2 answer. Any grievance not appealed in writing to Step 3 by the Union within ten (10) calendar days shall be considered waived. Step 3. If appealed, the written grievance shall be presented by the Union and discussed with the Employer-designated Step 3 representative. The Employer-designated representative shall give the Union the Employer’s answer in writing within ten (10) calendar days after receipt of such Step 2 grievance. A grievance not resolved in Step 3 may be appealed to Step 4 within ten (10) calendar days following the Employer-designated representative’s final answer in Step 3. Any grievance not appealed in writing to Step 4 by the Union within ten (10) calendar days shall be considered waived. Step 4. If the grievance is still unresolved in Step 3, the UNION and EMPLOYER may agree, within ten (10) calendar days after the reply of the Step 3 Representative was due, to petition the Bureau of Mediation Services for assistance in settling through mediation. If either party determines during the mediation process that further mediation would serve no purpose, the UNION within ten (10) calendar days by written notice to the EMPLOYER, may request arbitration of the dispute. Step 5. A grievance unresolved in Step 4 and appealed to Step 5 by the Union shall be submitted to arbitration subject to the provisions of the Public Employment Labor Relations Act of 1971, as amended. The selection of an arbitrator shall be made in accordance with the “Rules Governing the Arbitration of Grievances” as established by the Bureau of Mediation Services. 7.5 Arbitrator’s Authority: A. The arbitrator shall have no right to amend, modify, nullify, ignore, add to, or subtract from the terms and conditions of this Agreement. The arbitrator shall consider and decide only the specific issue(s) submitted in writing by the Employer and the Union, and shall have no authority to decide on any other issue not so submitted. B. The arbitrator shall be without power to make decisions contrary to, or inconsistent with, or modifying or varying in any way the application of laws, rules or regulations having the force and effect of law. The arbitrator’s decision shall be submitted in writing within thirty (30) days following the close of the hearing or the submission of briefs by the parties, whichever be later, unless the parties agree to an extension. The decision shall be binding on both the Employer and the Union and shall be based solely on the arbitrator’s interpretation or application of the express terms of this Agreement and to the facts of the grievance presented. C. The fees and expenses for the arbitrator’s services and proceedings shall be borne equally by the Employer and the Union provided that each party shall be responsible for compensating its own representatives and witnesses. If either party desires a verbatim record of the proceedings, it may cause VIII-12 7 such a record to be made, providing it pays for the record. If both parties desire a verbatim record of the proceedings, the cost shall be shared equally. 7.6 Waiver. If a grievance is not presented within the time limits set forth above, it shall be considered “waived.” If a grievance is not appealed to the next step within the specified time limit or any agreed extension thereof, it shall be considered settled on the basis of the Employer’s last answer. If the Employer does not answer a grievance or an appeal thereof within the specified time limits, the Union may elect to treat the grievance as denied at that step and immediately appeal the grievance to the next step. The time limit in each step may be extended by mutual written agreement of the Employer and the Union in each step. ARTICLE VIII. SAVINGS CLAUSE The Agreement is subject to the laws of the United States, the State of Minnesota and the City of Hastings. In the event any provision of this Agreement shall be held to be contrary to law by a court of competent jurisdiction from whose final judgment or decree no appeal has been taken within the time provided, such provisions shall be voided. All other provisions of this agreement shall continue in full force and effect. The voided provision may be renegotiated at the written request of either party. ARTICLE IX. SENIORITY 9.1 Seniority shall be determined by the employee’s length of continuous full-time employment with the Fire and EMS Department and posted in an appropriate location. Seniority rosters may be maintained by the Fire and EMS Director on the basis of time in grade and time within specific classifications. 9.2 During the probationary period, a newly hired or rehired employee may be discharged at the sole discretion of the Employer. During the probationary period, a promoted or reassigned employee may be replaced in his/her previous position at the sole discretion of the Employer. 9.3 A reduction of work force will be accomplished on the basis of seniority. Employee shall be recalled from layoff on the basis of seniority. An employee on layoff shall have an opportunity to return to work within two (2) years of the time of his/her layoff before any new employee is hired. 9.4 Vacations will be selected on the basis of seniority from November 15th to November 25th of the current year. This will be done annually and covers the period from January 1st of the following calendar year to December 31st of the following calendar year. Vacation selection will be approved by the employer no later than December 5th of the current year. After December 5th or post approval, all vacation requests will be first come first serve until the next vacation selection process. ARTICLE X. DISCIPLINE 10.1 The Employer will discipline employees for just cause only. Discipline will be in one of the following forms: a) oral reprimand; b) written reprimand; VIII-12 8 c) suspension; d) demotion; or e) discharge. 10.2 Suspensions, demotions and discharges will be in written form. 10.3 Written reprimands, notices of suspension, and notices of discharge which are to become part of an employee’s personnel file shall be read and acknowledged by signature of the employee. The employee and the Union will receive a copy of such reprimands and/or notices. 10.4 Employees may examine their own individual personnel files at reasonable times under the direct supervision of the Employer. 10.5 Employees will not be questioned concerning an investigation of disciplinary action unless the employee has been given an opportunity to have Union representatives present at such questioning. 10.6 Grievances relating to this Article shall be initiated by the Union in Step 3 of the grievance procedure under Article VII. ARTICLE XI. CONSTITUTIONAL PROTECTION Employees shall have the rights granted to all citizens by the United States and Minnesota State Constitutions. ARTICLE XII. HOURS OF EMPLOYMENT The regular workweek for firefighters scheduled for fifty-three (53) hours in one (1) week shall work normal shifts that are twenty-four (24) consecutive hours. Firefighters scheduled to an alternate schedule of forty- four (44) hours in one (1) week shall work normal shifts that are twelve (12) consecutive hours. The regular workweek for a fire inspector shall consist of forty (40) hours in one (1) week. When an employee is called out on a job assignment, only the time actually spent on making the call may be counted as hours worked. Shift exchanges will be allowed, with prior supervisor approval, within a 6-month period provided the shift switch does not result in any form of premium and/or overtime pay, including article XIV Holiday Pay. The Employer may from time to time, in its sole discretion, temporarily adjust a Firefighter’s work schedule to forty (40) hours in one (1) week for purposes of alternate job assignment such as light duty or training. In event of such temporary schedule, the Firefighter’s wage shall be adjusted such that the temporary hourly rate of the forty (40) hour work week is 1.325 times the hourly rate of the fifty-three (53) hour work week. Such temporary schedule adjustment does not include furlough or other reduction in force. ARTICLE XIII. LEGAL PROTECTION All employees shall be given legal protection as provided for under Minnesota and Federal Statutes. VIII-12 9 ARTICLE XIV. OVERTIME All employees required to work at times other than their scheduled hours of employment will be paid at one and one-half (1.5) times their regular hourly rate. A minimum of one and one-half (1½) hours at overtime rate will be paid for ambulance and fire calls. Overtime will be distributed as equally as practicable. Hours scheduled to work on New Year’s Day, Martin Luther King Day, Presidents Day, Memorial Day, Juneteenth, 4th of July, Labor Day, Veterans Day, Thanksgiving, the day following Thanksgiving, and Christmas will be paid at 1.5 time the regular hourly rate. Premium pay is earned for those hours worked on the actual holiday listed above. If an individual is called back for shift overtime on New Year’s Day, 4th of July, Thanksgiving, and Christmas Day that employee will receive an additional 0.5 time on top of their premium pay. ARTICLE XV. HOLIDAYS Firefighters shall be paid for seventy-two (72) hours holiday pay, paid by separate check no later than the first Friday after the first payday in December each year, regardless of the number of holidays actually worked. Holiday pay will be based on their individual hourly rate. Employees hired or separated from employment after January 1 of any calendar year shall earn holiday credit based on a pro-rated schedule of 1/12th of the total number of holidays granted in the paragraph above for each month or major fraction thereof worked. Firefighters shall receive credit for eighty-four (84) hours that shall be taken as additional vacation.. These hours must be taken during the year in which they are earned. These hours may be taken in twelve (12) or twenty-four (24) hour increments. The following days are official holidays for any Fire Inspector employees: Holidays Date New Year’s Day January 1 Martin Luther King Birthday Third Monday in January Presidents’ Day Third Monday in February Memorial Day Last Monday in May Juneteenth June 19 Independence Day July 4 Labor Day First Monday in September Veteran’s Day November 11 Thanksgiving Day Fourth Thursday in November Friday following Thanksgiving Day Fourth Friday in November Christmas Day December 25 Two (2) Floating Holidays Floating holidays cannot be carried over into another calendar year and must be taken before December 31 of each year. Floating holidays must be taken in the full eight-hour increments. Employees will not receive compensation in lieu of taking floating holidays. Employees hired prior to July 1 in a year will receive two floating holidays for that year; employees hired July 1 in a year will receive one floating holiday for that year. VIII-12 10 ARTICLE XVI. EDUCATION INSTRUCTIONAL TIME Mandatory instructional/educational time shall be paid at the individuals’ overtime rate while not on duty. Employee(s) attending non-mandatory, instructional/educational or job-related training shall not be paid overtime. In certain situations, the employee(s), may be required to use vacation for other hours as needed, to be determined by the supervisor. ARTICLE XVII. VACATION 17.1 Firefighters, are eligible to accrue vacation according to the following schedule: YEAR OF SERVICE HOURS OF VACATION 0- 1 year 96 hours Beginning of 2nd Year & 3rd Year 120 hours Beginning of 4th Year & 5th Year 132 hours Beginning of 6th Year & 7th Year 144 hours Beginning of 8th Year 156 hours Beginning of 9th Year 168 hours Beginning of 10th Year 180 hours Beginning of 11th Year 192 hours Beginning of 12th Year 204 hours Beginning of 13th Year 216 hours Beginning of 14th Year 228 hours Beginning of 15th thru 19th Year 240 hours Beginning 20th Year 300 hours Years of Service Vacation Maximums (Approved by City Council 09-05-95) 0-5 Years 180 Hours Maximum 6-10 270 Hours Maximum 11+ years 450 Hours Maximum All regular full-time fire inspector (s) are eligible to accrue vacation according to the following schedule: Years of Service Annual Accrual Hours 0-1 88 Beginning of 2nd year 96 Beginning of 3rd year 104 Beginning of 4th year 112 VIII-12 11 Beginning of 5th year 120 Beginning of 6th year 128 Beginning of 7th year 128 Beginning of 8th year 136 Beginning of 9th year 136 Beginning of 10th year 144 Beginning of 11th year 144 Beginning of 12th year 152 Beginning of 13th year 160 Beginning of 14th year 168 Beginning of 15th year 176 Beginning of 16th year 200 Years of Service Maximum Accumulation 0 – 5 120 hours 6 – 10 180 hours 11+ 300 hours 17.2 All vacation pay shall be accrued, and in the event an employee’s employment is terminated for any reason, the employee shall receive, upon their termination the vacation pay which they have coming at that time on a pro-rate basis. No more than four (4) consecutive weeks (212 hours for firefighters and 160 hours for fire inspector) vacation can be taken at one time. 17.3 In computing vacation pay, length of service shall be based upon the anniversary date of the day an employee commences employment as a full-time employee. ARTICLE XVIII. SICK LEAVE AND OTHER LEAVES OF ABSENCE 18.1 Sick Leave: Sick leave will be granted pursuant to Federal Regulations, State Statute and FMLA. All employees of the City shall be entitled to accumulate one (1) day of sick leave for each month of employment. Sick leave may be used for mental or physical illness, injury or other health condition, or the treatment, diagnosis, care or preventative care, of the employee or family member as defined in Minn. Stat. § 181.9445. Sick leave may also be used due to the domestic abuse, sexual assault or stalking of the employee or family member. Employees may use sick leave due to communicable disease or public emergency as set forth by statute. The Employer may require verification of the use of sick leave when an employee has been absent for three consecutive days. Verification shall be consistent with the requirements of state law. Prolonged Illness Bank Firefighter/paramedic, sick leave balances in excess of one hundred thirty (130) days (1560 hours) shall VIII-12 12 receive eight (8) hours of sick leave (to be placed in a prolonged illness sick leave bank) and four (4) hours of vacation for each month of employment. Fire Inspector: Once 960 hours of sick leave has been accumulated, the leave accrual will be as follows: • ½ of the accrual will be placed in a Prolonged Illness Bank. An employee may only use the prolonged illness bank after all other accumulated sick leave has been used. • ½ of the accrual will be earned as additional vacation. All vacation is subject to the maximum accrual cap. 18.2 Personal Leave: All firefighters of the City shall be entitled to 72 hours personal leave per occurrence, which shall not accumulate. Fire Inspector is entitled to up to 40 hours per occurrence, which will not accumulate. Personal leave for purpose of this paragraph includes and is limited to: Death in the immediate family, death of spouse, parent, brother, sister, child, grandchild, grandparent, and spouse’s parent, brother, sister, child, grandchild, grandparent. Immediate family also includes “step” family members of the employee or employee’s spouse. 18.3 Jury Duty: Employees called and selected for Jury Duty shall receive their regular compensation and other benefits for their employment, less the amount received by them as a Juror. 18.4 Union Leave: The City agrees to grant the necessary time off without pay to any employee designated to attend a labor convention or to serve in any capacity on other official Union business. 18.5 Court Time: An employee who is required to appear in Court and/or for Deposition during their scheduled off-duty time shall receive a minimum of two (2) hours pay at one and one-half (1½) time the employee’s base pay rate. An extension or early report to a regularly scheduled shift for Court or Deposition appearance does not qualify the employee for the two (2) hour minimum. ARTICLE XIX. SEVERANCE PAY If an employee dies in the line of duty, the deceased employee’s eligible sick leave will be paid out to the deceased’s estate. If an employee, after ten (10) years of service: • Retires at age 65 (or otherwise provided by law); or • Is forced to retire due a physical condition, including death, not allowing the employee to continue gainful employment; or • Voluntarily terminates employment with the City after due notice, with the consent of the City but not if discharged or resigns by the request of the City, the employee or employee’s descendants will receive fifty percent (50%) of unused sick leave. Employees will be allowed to draw from both the sick leave and extended sick leave banks as severance pay, up to a maximum severance payout as noted below: o Firefighter: up to a maximum of 960 hours of accumulated sick leave (50% of 1920 hours). o Fire Inspector: up to a maximum of 640 hours (50% of 1280 hours) VIII-12 13 ARTICLE XX. INSURANCE Health The City will agree to pay the cost of single health insurance coverage, if such coverage is elected by the employee. Regular, full-time employees may not waive single coverage. The City will agree to contribute a percentage of premium as established by the City Council, towards coverage other than single as offered by the City and elected by the Employee. The City contribution will remain at the same percentage. Per Minnesota Statute 471.61, retiring employees may remain on the City’s group health insurance indefinitely, at their own expense. The employee shall pay the City in advance on a monthly basis for the cost. The City will then remit payment to the insurance company. When the former employee reaches age 65, the City may transfer the former employee and covered dependents to a non-active employee pool. This indefinite continuation is made available under Minnesota Statute 471.61. Life All regular employees will also receive a $50,000 Life Insurance Policy effective upon date of agreement of this contract with the full cost of the premiums to be paid for by the City. Long-Term Disability All regular, full-time employees will receive a long-term disability insurance policy. The City will pay for long- term disability premiums. ARTICLE XXI. INJURED ON DUTY 21.1 Employees injured while on duty will receive full pay for a maximum of ninety (90) working days while unable to work due to such injury. The first three (3) working days lost due to an injury on duty will be charged to an employee’s sick leave account as part of worker’s compensation “waiting period”. If a work-related injury continues past ten days, the first three days which have been charged to the employee’s sick leave account will be reimbursed to the employee. An employee with no sick leave accumulation will not receive payment for the first three (3) working days lost. 21.2 Any compensation payable to the employee under Worker’s Compensation insurance will be reported to the Employer. The Employer shall make supplementary payments to the employee (not to be charged to the employee’s accumulated sick leave) to make up the difference between Worker’s Compensation and his/her normal rate of pay. 21.3 Any employee who claims an absence from work due to an injury sustained on the job shall provide, if requested by the Employer, a statement from the employee’s attending physician as to the nature of the injury. 21.4 Any employee who claims an absence from work due to an injury sustained on the job is subject to an examination to be made on behalf of and paid for by the Employer by a person competent to perform the VIII-12 14 same and as is designated by the Employer ARTICLE XXII. UNIFORMS The Employer agrees to supply dress uniforms, work uniforms and turn out gear as required. The City will provide the initial duty uniform. Upon termination of a probationary employee, all clothing will be returned to the City. Following initial issue and upon successful completion of the probationary period, the annual duty clothing allowance shall be Four Hundred dollars ($400.00). ARTICLE XXIII. WAGES 23.1 Wages for the term of the contract will be adjusted as follows: VIII-12 15 23.2 Longevity Longevity shall be payable as follows: 1% after five (5) years 2% after ten (10) years 3% after fifteen (15) years 4% after twenty (20) years 23.3 Paramedic January 1, 2026 January 1, 2027 January 1, 2028 Firefighter (53) Start 27.80$ 29.88$ 32.13$ 6 Months 29.62$ 31.84$ 34.23$ 12 Months 31.48$ 33.84$ 36.37$ 24 Months 33.30$ 35.80$ 38.49$ 36 Months 35.12$ 37.75$ 40.59$ Firefighter (44)Start 33.50$ 36.01$ 38.71$ 6 Months 35.69$ 38.37$ 41.24$ 12 Months 37.90$ 40.75$ 43.80$ 24 Months 40.12$ 43.13$ 46.36$ 36 Months 42.31$ 45.49$ 48.90$ Stipend Start 241.93$ 260.07$ 279.58$ 6 Months 257.55$ 276.86$ 297.63$ 12 Months 273.71$ 294.23$ 316.30$ 24 Months 289.57$ 311.29$ 334.64$ 36 Months 305.44$ 328.35$ 352.97$ Firefighter (40)Start 36.84$ 39.60$ 42.57$ 6 Months 39.25$ 42.19$ 45.36$ 12 Months 41.70$ 44.83$ 48.19$ 24 Months 44.12$ 47.43$ 50.98$ 36 Months 46.55$ 50.04$ 53.79$ Stipend Start 241.93$ 260.07$ 279.58$ 6 Months 257.55$ 276.86$ 297.63$ 12 Months 273.71$ 294.23$ 316.30$ 24 Months 289.57$ 311.29$ 334.64$ 36 Months 305.44$ 328.35$ 352.97$ Fire Inspector Start 37.65$ 40.29$ 43.11$ 6 Months 40.51$ 43.35$ 46.38$ 12 Months 43.37$ 46.40$ 49.65$ 24 Months 46.20$ 49.44$ 52.90$ 36 Months 49.06$ 52.49$ 56.17$ VIII-12 16 Those employees who have received and maintained their Paramedic Certification shall be compensated at 7% of their base pay. 23.4 Field Training Officer A Field Training Officer will receive payment of an additional $2.00 per hour when Firefighter is actually assigned to work as a Field Training Officer. 23.5 Education Incentive An employee will receive an additional stipend upon successful completion of a Fire Sciences, Fire Services or Paramedicine degree from a nationally accredited program, paid in equal amounts quarterly. Stipends shall not stack. Associates’ Degree $500.00 annual stipend Bachelor's Degree $1000.00 annual stipend ARTICLE XXIV. WAIVER 24.1 Any and all prior agreements, resolutions, practices, policies, rules and regulations regarding terms and conditions of employment, to the extent inconsistent with the provisions of this Agreement, are hereby superseded. 24.2 The parties mutually acknowledge that during the negotiations which resulted in this Agreement, each had the unlimited right and opportunity to make demands and proposals with respect to any term or condition of employment not removed by law from bargaining. All agreements and understanding arrived at by the parties are set forth in writing in this Agreement for the stipulated duration of this Agreement. The Employer and the Union each voluntarily and unqualified waives the right to meet and negotiate regarding any and all terms and conditions of employment referred to or covered in this Agreement or with respect to any term or condition of employment not specifically referred to or covered by this Agreement, even though such terms or conditions may not have been within the knowledge or contemplation of either or both of the parties at the time this contract was negotiated or executed. ARTICLE XXV. POST RETIREMENT HEALTH CARE SAVINGS ACCOUNT Upon honorable retirement from employment, one hundred percent (100%) of employee’s sick leave severance pay will be applied to the Minnesota State Retirement System (MSRS) Post-Retirement Health Care Savings Account. ARTICLE XXVI. WORKING OUT OF CLASSIFICATION Employees assigned to temporarily work in a position of a higher classification as a result of an extended absence by a co-worker may qualify for additional compensation. Additional compensation may be warranted if the temporary assignment is for a minimum of a 24-hour work period or more and upon review of the employee’s current wage and the additional duties assigned as part of the temporary classification. ARTICLE XXVII. UNION VACATION BANK During April of each calendar year each Local 5113 member will donate an equal amount of vacation time VIII-12 17 to maintain a range of 100-125 hours in a vacation bank to be used by the union board and or their delegates for union business. Any employee who became a member of IAFF Local 5113 later than October 1st of the preceding year is not required to donate. Management approvals of time off will be required. ARTICLE XXVIII. DURATION This Agreement shall be effective as of January 1, 2026 and shall remain in full force and effect until the thirty-first day of December, 2028. IN WITNESS WHEREOF, the parties hereto have executed this Agreement. INTERNATIONAL ASSOCIATION OF FIREFIGHTERS CITY OF HASTINGS LOCAL NO. 5113 Mary Fasbender, Mayor Jamie Stevens, President Dan Wietecha, City Administrator Phil Nelson, Vice President Kelly Murtaugh, City Clerk Kaitlin Neuman, Secretary/Treasurer VIII-12 18 Memorandum of Agreement: Overtime This Memorandum of Agreement (“MOA”) is entered into by and between the City of Hastings (“City”) and the International Association of Fire Fighters, Local #5113 (“Union”). WHEREAS, the City has adopted a 21-day work period where Firefighters may work up to a maximum of 159 hours before the City is required to pay overtime compensation pursuant to the Fair Labor Standards Act; WHEREAS, on January 8, 2021, the City sent a letter to the Union placing the Union on notice that the City intended to discontinue and no longer recognize the past practice of compensating Firefighters nine (9) hours of overtime at time and one half of the hourly rate, regardless of whether the Firefighters worked more than 159 hours in a work period; WHEREAS, the City and the Union are parties to a January 1, 2026 - December 31, 2028 Collective Bargaining Agreement (“CBA”) governing the general terms and conditions of employment for Firefighters employed by the City; BE IT RESOLVED, that during the term of the current 2026-2028 CBA, the parties agree that Firefighters will be compensated as overtime the hours in excess of the 159 hour work period, whether the hours in the shift are compensated for work, PTO, vacation, or sick time. BE IT FURTHER RESOLVED, that the City has not waived its right to end the past practice upon the expiration of the 2026-2028 CBA, and the Union will need to negotiate for subsequent continuation of the practice. IN WITNESS WHEREOF, the parties hereto have executed this Memorandum of Understanding on the dates recorded below their respective signatures. INTERNATIONAL ASSOCIATION FIREFIGHTERS CITY OF HASTINGS UNION, LOCAL NO. 5113 Mary Fasbender, Mayor Jamie Stevens, President Dan Wietecha, City Administrator Phil Nelson, Vice-president Kelly Murtaugh, City Clerk Kaitlin Neuman, Secretary/Treasurer VIII-12 19 Memorandum of Understanding: Mental Health and Wellness Program This Memorandum of Understanding (MOU) is entered into by and between the City of Hastings (“City”) and the International Association of Fire Fighters Local #5113 (“Union”), on behalf of the Fire Fighters bargaining unit, for the purpose of establishing guidance for an employee mental health and wellness program. The City and Union shall collectively be referred to as “the Parties.” WHEREAS, the Hastings Fire Department (“Fire Department”) recognizes that, during the course of performing their job duties, Fire Department employees may become involved in or exposed to incidents that have the potential to cause various forms of short-or long-term emotional and psychological trauma; and WHEREAS, the Fire Department is committed to supporting the mental health and wellness of its employees by providing them with resources that will help ensure stability and longevity in the personal and professional lives of each employee; and WHEREAS, the Fire Department desires to provide employees with cost-free mental health services from a qualified mental health professional that specializes in working with public safety employees; and WHEREAS, the City and Union are parties to a 2026-2028 collective bargaining agreement (“CBA”) which does not contain any negotiated language over the establishment or participation of Fire Department employees in a mental health program; and WHEREAS, the Parties agree that the establishment and implementation of a mandatory mental health program is the subject of bargaining; and NOW, THEREFORE, BE IT RESOLVED, in consideration of the foregoing recitals, the Parties hereby agree as follows: Purpose: This policy establishes the Hastings Fire Department Mental Health Program. The purpose of this program is to ensure the mental health and well-being of employees. This policy defines the program that shall be provided by the Department to all employees, along with the roles and responsibilities of the employee and the Fire Department. Policy: The Hastings Fire Department hereby establishes a Mental Health Program. Along with the annually required physical exam, employees will participate in an annual mental health consultation to identify any potential conditions or problems that affect the employee’s health and wellness. All staff who engage in firefighting and emergency medical services will attend one mandatory session with a mental health provider each year. Failure to comply with this requirement can be cause for disciplinary action. Procedure: 1. Participation in this program is mandatory for all full-time and paid on-call personnel who engage in firefighting, rescue and emergency medical services activities. VIII-12 20 2. Employees will complete at least one (1) appointment with the Fire Department’s approved mental health provider every year. 3. The Fire Department will allow employees the necessary time away from their scheduled work duties to attend the mandatory mental health appointment without loss of pay or deduction of leave. 4. In the event the mental health appointment must be scheduled when an employee is off duty, the employee will be compensated at the employee’s overtime rate of pay for the appointment and travel time from the employee’s home to and from the mandatory appointment. Designated Provider: The Fire Department will appoint one designated provider annually. An employee who is already under the care of another provider will have the ability to notify the designated provider that they are already receiving mental health counseling through another provider. The designated provider will then verify that the employee has met the requirement of attendance with Department administration, without disclosing any further information. The designated provider, in special circumstances, may refer individuals to other providers who may offer specialized services. Mental Health Program Committee: A committee shall be established to implement and manage the Mental Health Program. The committee will consist of two representatives from IAFF Local #5113, one paid-on-call representative, and one Chief. The committee will be responsible for the following: • Providing input and assistance in the development and implementation of programs related to mental health. • Making recommendations on the type and content of mental health awareness and related programs, services, or training. • Distributing applicable mental health related information to employees. • Evaluating the overall effectiveness of programs related to mental health. • Evaluating and recommending approved mental health providers to Fire Department Administration. • Participation in the committee shall not be considered negotiation by the bargaining unit. Critical Incident Stress Debriefings Employees are strongly encouraged to participate in Critical Incident Stress Debriefings when they occur. Employees are also strongly encouraged to request that a CISD session be arranged following critical incidents. Participation in a CISD does not meet the annual attendance requirement of the mental health program. Confidentiality The communication between the any mental health care provider and the employee is privileged and therefore the Department considers all mental health appointments, communication during the appointment, and any recommendations as confidential in accordance with all applicable State and Federal privacy laws. The mental health care provider shall be prohibited from sharing any employee information other than confirming with VIII-12 21 the Department that an employee was or was not compliant with the program’s directive of attending one appointment by the end of each year. Follow Up Visits If an employee or the care provider feels that services beyond the one (1) required appointment would be needed or beneficial for the employee, the care provider may create a referral at the employee’s discretion. Additional resources are available to the employee through the City’s Employee Assistance Program (EAP) as well as the employee’s health insurance. 1. These additional appointments are not mandatory. 2. Up to five (5) additional appointments will be provided through the Fire Department. 3. As with any other medical appointment, employees will not be compensated for time spent at additional appointments. Employees are eligible to use sick leave to attend additional, non-mandatory appointments while on duty. 4. If the employee wishes to schedule follow up appointments with the care provider, the employee may schedule those appointments directly with the provider. [The Remainder of this Page Intentionally Left Blank] VIII-12 22 IN WITNESS WHEREOF, the Parties hereto have caused this MOU to be executed by its duly authorized representatives. CITY OF HASTINGS INTERNATIONAL ASSOCIATION OF FIRE FIGHTERS, LOCAL NO. #5113 Approved by the Hastings City Council: Approved by the Union: ____________________________________ _______________________________ Mary D. Fasbender, Mayor Jamie Stevens, President ____________________________________ ________________________________ Dan Wietecha, City Administrator Phil Nelson, Vice President ____________________________________ ________________________________ Kelly Murtaugh, City Clerk Kaitlin Neuman, Secretary/Treasurer VIII-12 23 MEMORANDUM OF AGREEMENT This Memorandum of Understanding (MOU) is entered into by the City of Hastings (“City”) and International Association of Fire Fighters, Local 5113 (“Union”). WHEREAS, the City and Union are parties to a Collective Bargaining Agreement in effect January 1, 2026 through December 31, 2028 and continuing by operation of law; WHEREAS, the parties have agreed to negotiate the Minnesota Paid Leave (MPL) premium contribution rates, which go into effect January 1, 2026. NOW, THEREFORE, the parties agree to the following: In accordance with Minnesota Statute 268B.14, the City agrees to pay 50% of the Minnesota Paid Leave premiums for all employees represented by the Union for the duration of the contract agreement. The employees agree to pay 50% of the qualifying equivalent plan maintained by the employer. All other provisions of the Collective Bargaining agreement between the City and the Union remain unchanged. Effective this __5th______ day of January 2026. City of Hastings: International Association of Fire Fighters Approved by Hastings City Council Approved by Membership __________________________________ ________________________________ Mary Fasbender, Mayor Jamie Stevens, President __________________________________ ________________________________ Dan Wietecha, City Administrator Phil Nelson, Vice President __________________________________ ________________________________ Kelly Murtaugh, City Clerk Kaitlin Neuman, Secretary/Treasurer VIII-12 12/29/2025 VIII-13 VIII-13 VIII-13 VIII-13 VIII-13 VIII-13 City Council Memorandum To:Mayor Fasbender & City Councilmembers From:City Administrator Dan Wietecha Date:January 5, 2026 Item:2026 Legislative Priorities Council Action Requested: Approve 2026 Legislative Priorities Background Information: The City Council has generally utilized the legislative priorities set by the League of Minnesota Cities and Metro Cities (both organizations which the City is a member). Additionally, the last few years, the City Council has identified several priorities of particular concern for the City and has used these when meeting with state and federal elected officials and staff. The City Council held a workshop on November 11, 2025, to discuss legislative priorities and had general consensus on these: •Clean and Safe Drinking Water •Affordable Housing •Cannabis •Community Television •Crypto Currency Kiosk Fraud •Local Option Sales and Use Tax •Veterans Park Financial Impact: n.a. Commission Discussion: City Council Workshop 1/3/2025 Attachments: City of Hastings 2026 Legislative Priorities VIII-14 VIII-14 City Council Memorandum To: Mayor Fasbender & City Council Members From: Ryan Stempski, P.E. – Public Works Director Date: January 5, 2026 Item: Authorize Signature of Letter of Intent and Consider Resolution Regarding Disposal and Sale of the Hydroelectric Plant COUNCIL ACTION REQUESTED Council has been requested to authorize signature of the attached Letter of Intent with J.F. Brennan Company, Inc. regarding the terms of sale of the Hydroelectric Plant. Additionally, the Council has been requested to consider adopting the enclosed resolution regarding the disposal and sale of the Hydroelectric Plant to comply with Section 7.04 of the City Charter. BACKGROUND The Hydroelectric Plant is an aging facility and cost projections to continue to own and maintain the facility are not fiscally responsible to the taxpayers in Hastings. Several meetings over the past two years have been held regarding this subject to provide information and obtain directions including Utilities Committee Meetings, City Council Workshops, and City Council Meetings. A Public Hearing was conducted at the December 15th City Council Meeting, and no public comments were received. NEXT STEPS J.F. Brennan Company, Inc. is a marine construction firm specializing in environmental remediation, dam construction, commercial diving, harbor management and submarine cable services. They have provided a Letter of Intent that outlines the terms of sale, which has been reviewed by the City Attorney: · Purchase price is $1 for Brennan to take over ownership and maintenance of the Hydroelectric Plant · Includes the transfer of the FERC License, USACE Agreement, and Xcel Agreement from the City to Brennan · As-Is Sale as to the physical conditions of the assets comprising the Plant · For a period of one year after closing, the City shall provide ongoing assistance with administration, compliance, and submittals to transition requirements and regulations of licensure and agreements of the Plant · Brennan has a due diligence period of 60 days after execution of the Letter of Intent prior to closing · If Brennan sells to an unrelated third party within 5 years of closing, Brennan shall pay the City 80% of net sale proceeds if within year 1, 60% of net sale proceeds if within year 2, 40% of net sale proceeds if within year 3, and 20% of net sale if within year 4 Also attached is the Resolution Regarding the Disposal and Sale of the Hydroelectric Plant that recognizes the negative cash flow projections of over $14M over the next 25 years and complies with Section 7.04 of the City Charter for disposal of property. X-A-01 (a,b) COUNCIL ACTION REQUESTED Council is requested to authorize signature of the attached Letter of Intent with J.F. Brennan Company, Inc. and to consider adopting the enclosed resolution regarding the disposal and sale of the Hydroelectric Plant. ATTACHMENTS · Letter of Intent from J.F. Brennan Company, Inc. · Resolution Regarding the Disposal and Sale of the Hydroelectric Plant · Hastings Hydro Maintenance Optimization Report prepared by Barr Engineering, dated October 2023 X-A-01 (a,b) December 11, 2025 City of Hastings, Minnesota 101 4th Street East Hastings, Minnesota 55033 Attn: Mr. Joe Spagnoletti RE: NONBINDING LETTER OF INTENT (“LOI” OR “LETTER”) — HASTINGS HYDROELECTRIC PROJECT (FERC # P-4306) Dear Mr. Spagnoletti: This Letter is intended to summarize the principal elements of a proposal being considered by J.F. Brennan Company, Inc., a Wisconsin corporation (“Brennan”), regarding the possible acquisition by one of its affiliates (“Buyer”), for an expected purchase price in good faith of One and 00/100 Dollars ($1.00), of the above-referenced hydroelectric project with plant capacity of 4400 kW, located at or upon Mississippi River Locks and Dam No. 2 (the assets and interests comprising the foregoing being referred to hereafter as the “Plant”) and owned by the City of Hastings, Minnesota (the “City”). The possible acquisition of the Plant by Buyer is referred to as the “Transaction.” For the avoidance of doubt, except for the provisions contained in Part Two below, this Letter is part of a partial proposal and does not and will not establish a binding obligation of the Buyer or the Seller (each sometimes referred to hereafter as a “Party” and collectively as the “Parties”), it being understood that the Parties will be legally bound to complete the Transaction only upon the execution of a mutually agreed upon definitive written purchase and sale agreement (the “Definitive Agreement”). Part One - Nonbinding As soon as reasonably practicable after execution of this Letter, the Parties shall commence to negotiate the Definitive Agreement relating to Buyer’s acquisition of the Plant. The Parties presently contemplate executing the Definitive Agreement and closing the Transaction on or before June 1, 2026, which will be subject in all respects to (1) satisfactory completion of the Buyer’s due diligence review of the Plant as hereinafter set forth, (2) prior approval by the Board of Directors or Managers, as applicable, of the Buyer, and (3) satisfaction of all conditions applicable to assignment of the Permits (as defined below). The following represent the principal elements of the proposed Transaction: 1. Acquisition of Purchased Assets. Subject to satisfaction of the conditions described in this Letter and in those contained in the Definitive Agreement, at the closing of the Transaction, the Buyer would acquire substantially all the assets, and no liabilities or obligations of any kind or character, comprising the Plant and/or necessary or appropriate for the ownership and operation of the Plant, free and clear of all encumbrances. Buyer assumes maintenance obligations and liabilities of the Plant assets as of the date of closing, such assets being sold in “as-is” condition as more fully described in Paragraph 4. By way of reference only, and not as a limitation, the assets comprising the Plant and/or necessary or appropriate for the ownership, operation and maintenance of the Plant shall include the following: X-A-01 (a,b) J.F. Brennan Company, Inc. page 2 of 5 (a) Real Property. All real property owned or occupied by the City and used in the operation of or in any way associated with the Plant, including without limitation leasehold interests, rights of access, licenses for access and/or occupancy (including any and all agreements between the City and the United States Army Corps of Engineers (collectively, “USACE Agreements”), and servitudes. (b) Personal Property. All personal property owned, leased or otherwise held by the City under contract and used in the operation of or in any way associated with the Plant, including without limitation water diversion equipment, water conveyance equipment, power generation equipment, electric interconnection and related facilities, spare and replacement parts, inventory, tools, equipment leases, occupancy or access agreements and licenses (including the USACE Agreements), power purchase agreements (including any and all agreements between the City and Northern States Power/Xcel Energy (collectively, “Xcel Agreements”)), Federal Energy Regulatory Commission (FERC) license(s), other federal or state licenses, permits and operating orders or decrees, supplies, books, and records (both electronic and physical). 2. Assignment of Licenses, Permits, Etc. The City shall initiate the process to assign or transfer to the Buyer in accordance with relevant federal and state law all licenses (including FERC license(s)), permits and operating orders or decrees issued by federal or state authorities and necessary or appropriate for ownership, operation and maintenance of the Plant (collectively, the “Permits”), subject to the Buyer’s commercially reasonable approval of the same. The City will coordinate with the Buyer on such assignment and transfer process, including providing copies of all material communications and filings with applicable governmental authorities prior to any submissions with a reasonable time to review and approve the same. The Buyer will work with the City to effect an orderly and timely assignment and transfer of all such Permits and will cooperate with the City in providing any and all information or documentation necessary to effectuate the assignment and transfer of all such Permits. 3. Assumed Liabilities. The Buyer shall not, by virtue of the Transaction, be deemed to have assumed, and is not assuming, any liability or obligation of any kind, character or description whatsoever of the City or the Plant, or otherwise applicable to ownership or operation of the Plant prior to the date of closing for the Transaction. The Buyer will accept assignment of contracts, agreements, licenses and permits, and the obligation to perform in accordance with the foregoing, from and after the date of closing for the Transaction. 4. “As Is” Sale. The terms of the Transaction shall be “As Is, Where Is” as to the physical condition of the assets comprising the Plant. The City shall nonetheless provide customary and limited representations, warranties and indemnities to the Buyer. 5. Post-Closing Cooperation/Consultation. For a period of one year after the date of closing for the Transaction, the City shall provide ongoing assistance to the Buyer with applicable administration, compliance and submittals to and with FERC, the United States Army Corps of Engineers, Northern States Power/Xcel Energy and other applicable regulatory bodies and contract counterparties, as reasonably necessary and appropriate to transition operational history and experience from the City to the Buyer. At the request of either Party, the Parties shall execute at closing a mutually acceptable consulting services agreement documenting such assistance services. X-A-01 (a,b) J.F. Brennan Company, Inc. page 3 of 5 6. Reserved. Part Two - Binding Upon execution of this Letter, the following paragraphs 7 through 11 of this Letter are legally binding and enforceable agreements of the Parties (collectively, the “Binding Provisions”). 7. Due Diligence. Brennan has based current due diligence regarding the Plant, its constituent assets, and their current condition and operating history on information that is publicly available, information provided by the City, and a site visit conducted at the Plant on October 21, 2025. For a period of sixty (60) days after full execution of this Letter, or for such longer period as may be later agreed upon by the Parties in writing (the “Due Diligence Period”), the City will afford Brennan, the Buyer and their respective representatives reasonable access to all assets and facilities comprising the Plant, and all data, drawings, specifications, operating manuals, books and records (including those of its advisors, accountants, attorneys and other representatives) relating to the Plant for the purpose of permitting Brennan, the Buyer and their respective representatives, at their sole cost and expense, to conduct a thorough due diligence investigation of the legal, operational and financial condition of the Plant (the “Due Diligence Investigation”). Brennan, the Buyer and/or their respective representatives will conduct the Due Diligence Investigation in such a manner so as not to unreasonably interfere with the normal conduct of operations at the Plant. Nonpublic information regarding the Plant obtained from the City in the course of the Due Diligence Investigation will be subject to the terms and conditions of a mutually acceptable Confidentiality Agreement between the City and Brennan or the Buyer, as applicable. 8. Exclusive Dealing. In consideration of the expenses the Buyer has incurred and will incur in connection with the proposed Transaction, the City acknowledges and agrees that concurrent with the Due Diligence Period, neither the City nor any of its representatives, officers, employees, managers, supervisors, or agents shall initiate, solicit, entertain, negotiate, accept or discuss, directly or indirectly, any proposal or offer from any person or group of persons other than Brennan, the Buyer or their respective affiliates (an “Acquisition Proposal”) to acquire all or any significant portion of the assets and properties comprising the Plant, or provide any non-public information to any third party in connection with an Acquisition Proposal, or enter into any agreement, arrangement or understanding requiring the City to abandon, terminate or fail to consummate the Transaction. 9. Disclosure. Except as and to the extent required by law or regulation or except as to their respective representatives that will perform work with respect to the proposed Transaction, absent the prior written consent of the other Party, the Parties hereto will not, and will direct their respective representatives not to, make, directly or indirectly, any public comment, statement or communication with respect to, or otherwise disclose or permit the disclosure of the existence of discussions regarding a possible transaction among the Parties or any of the terms, conditions or other aspects of the proposed Transaction. If any Party is required by law or regulation to make any such disclosure, such Party will first provide to the other Party the content of the proposed disclosure, the reasons that such disclosure is so required, and the time and place that the disclosure will be made. Notwithstanding the foregoing, Brennan or Buyer agrees and acknowledges that the City is a political subdivision of the State of Minnesota and is subject the Open Meeting Law (Minn. Stat. ch. 13D) and the Minnesota Government Data Practices Act (Minn. Stat. ch. 13). Accordingly, this LOI must be authorized by the City Council of the City during a public X-A-01 (a,b) J.F. Brennan Company, Inc. page 4 of 5 meeting and this LOI and the Transaction will be public data, as defined by Minnesota law. The City will use commercially reasonable efforts, but at all times subject to applicable law, to notify Brennan or Buyer of the request for disclosure of trade secrets, or non-public or confidential information provided by Brennan or Buyer to the City. 10. Expenses. The Parties will each pay their own transaction expenses, including, but not limited to, the fees and expenses of accountants, attorneys, consultants, and other advisors, incurred in connection with the proposed Transaction. 11. Sale of Plant. If Brennan or the Buyer sells to an unrelated third party a controlling interest in the Plant, whether as an asset transaction or through an equity transfer, within five years of Closing (as defined in the Definitive Agreement), Brennan or Buyer shall be obligated to pay City the percentage of the net sale proceeds as outlined below: within Year 1 - 80% of net sale proceeds to the City. within Year 2 - 60% of net sale proceeds to the City. within Year 3 - 40% of net sale proceeds to the City. within Year 4 - 20% of net sale proceeds to the City. After Year 4 - No sale proceeds to the City. For purposes of clarification, “net sale proceeds” shall be equal to the total sale price, less the applicable costs of the sale transaction incurred by Brennan or the Buyer, less the then unamortized cost of all improvements to the Plant made by Brennan or the Buyer after Closing and on or prior to the date of such third-party sale transaction. This provision shall survive the Closing of the Transaction. Termination. Following full execution hereof, this Letter will terminate upon the first to occur of: (a) the mutual written agreement of the Buyer and the City; (b) the execution of the Definitive Agreement(s); or (c) unless otherwise extended by the Parties in writing, September 30, 2026. Upon termination of this Letter, the Parties shall have no further obligations hereunder except that of the provisions of Part Two hereof, and the obligations of the Parties thereunder shall survive any such termination. If this Letter meets your approval, please confirm the same by executing the acknowledgment below and return it via email to markbinsfeld@jfbrennan.com. If you have any questions, please contact Mark Binsfeld at (608) 406-5385. Sincerely, J.F. Brennan Company, Inc. By: _________________________ Name: _________________________ Title: _________________________ Mark Binsfeld Vice President of Business Development/ Principal X-A-01 (a,b) J.F. Brennan Company, Inc. page 5 of 5 The foregoing Letter of Intent is hereby accepted as of the ____ day of _________, 202_. City of Hastings, Minnesota By: ____________________________ By: _________________________________ Name: __________________________ Name: ______________________________ Title: ____________________________ Title: _______________________________ X-A-01 (a,b) RESOLUTION NO. _______ CITY OF HASTINGS DAKOTA COUNTY, MINNESOTA A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HASTINGS REGARDING THE DISPOSAL AND SALE OF THE HYDROELECTRIC PLANT WHEREAS, the City of Hastings owns the Hastings Hydroelectric Plant located at and upon the Mississippi River Lock and Dam No. 2 (“Plant”) upon Parcel Identification No. 190210060010; and WHEREAS, the City authorized the preparation of the “Hastings Hydro Maintenance Optimization Report,” prepared by Barr Engineering, dated October 2023, which was included in the council packet (the “Report”); and WHEREAS, the Report concluded estimated operations and maintenance costs of the Plant that was included in the City’s financial outlook over the next 25 years, which resulted in a negative cash flow amount of over $14 Million; and WHEREAS, Section 7.04 of the City Charter states that no real property shall be disposed of unless the City Council passes a resolution containing specific findings that the public interest requires the Plant be disposed of after a notice and public hearing; and WHEREAS, the City Council held a public hearing on December 15, 2025, and published notice of the same in the Hastings Journal, at which time the public was afforded the opportunity to provide comments on the disposal and sale of the Plant; and WHEREAS, given the Report conclusions and the public comments, the City Council finds that it is not fiscally responsible to the citizens of Hastings to continue owning the Plant and desires to sell the Plant to a suitable buyer, who will continue operations; and NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HASTINGS AS FOLLOWS: 1. The City has satisfied the notice and hearing requirements of Section 7.04 of the City Charter. 2. The public interest requires the Plant be disposed of and sold. 3. The Mayor and any other necessary staff are authorized to execute the necessary documents on behalf of the City to complete the sale of the Plant to J.F. Brennan Company, Inc. consistent with the terms of the December 11, 2025, Letter of Intent. Council member_________________ moved a second to this resolution and upon being put to a vote it was adopted by the Council Members present. Adopted by the Hastings City Council on_______________, 2026, by the following vote: Ayes: Nays: Absent: X-A-01 (a,b) Mary Fasbender, Mayor ATTEST: Kelly Murtaugh, City Clerk X-A-01 (a,b) 3128 14th Avenue East Hibbing, MN 55746 218.262.8600 www.barr.com Hastings Hydro Maintenance Optimization Report Prepared for L&S Electric / City of Hastings October 2023 X-A-01 (a,b) i Certification I hereby certify that this plan, specification, or report was prepared by me or under my direct supervision, and that I am a duly Licensed Professional Engineer under the laws of the State of Minnesota. Kurt L. Sobczynski PE #: 41973 Date October 4, 2023 X-A-01 (a,b) \\barr.com\projects\Hibbing\23 MN\19\23191501 Hastings Hydro Maintenance Opt\WorkFiles\Report\Hastings Hydro Maintenance Optimization Report_2023-10-03_Final.docx i Hastings Hydro Maintenance Optimization Report October 2023 Contents 1 Abstract .................................................................................................................................................................................... 1 2 Element 1: Identify System Boundaries and Functions ......................................................................................... 3 2.1 Step 1: System Selection and Information Collection ...................................................................................... 3 2.2 Step 2: System Boundary Definition ........................................................................................................................ 3 2.3 Step 3: System Description/Functional Block Diagram ................................................................................... 5 2.4 Step 4: System Functions and Functional Failures ............................................................................................. 6 3 Element 2: Identify Specific Failure Modes that Could Potentially Produce Functional Failures ......... 7 3.1 Step 5: Failure Mode and Effects Analysis (FMEA) ............................................................................................ 7 4 Element 3: Prioritize Failure Modes .............................................................................................................................. 8 4.1 Step 6: Logic Tree Analysis (LTA) .............................................................................................................................. 8 5 Element 4: Task Selection and Evaluation .................................................................................................................. 9 5.1 Step 7: Task Selection ................................................................................................................................................... 9 5.2 Economic Evaluation of Recommended Maintenance ..................................................................................10 5.2.1 Assumptions and Clarifications ..........................................................................................................................10 5.2.2 Economic Analysis Approach ..............................................................................................................................13 5.2.2.1 Present Value Given Future Investment/Cash Flow .........................................................................13 5.2.2.2 Present Value Given Annual Investment/Cash Flow ........................................................................13 5.3 Economic Analysis Results ........................................................................................................................................14 List of Tables Table 5-1 History of Revenues -Electricity (provided by the City of Hasting) .............................................. 12 Table 5-2 Present Value Analysis Results .................................................................................................................... 14 Table 5-3 Projected Cash Flow ........................................................................................................................................ 15 X-A-01 (a,b) ii List of Appendices Appendix A Tables Table A-1 System Functions and Functional Failures Table A-2 System Work Breakdown Structure Step 3-4 Table A-3 Failure Mode and Effects Analysis (FMEA) Table A-4 Logic (Decision) Tree Analysis (LTA) Table A-5 Task Selection Table A-6 Preliminary Maintenance Recommendation Appendix B Figures Figure 1 Functional Block Diagram Appendix C Present Value Calculations for Operating and Maintenance Costs X-A-01 (a,b) 1 1 Abstract The purpose of this study is to determine the preventative maintenance activities that are required to preserve the functional capabilities of the hydroelectric power plant owned by the City of Hastings. The process used to determine the maintenance activities is Reliability Centered Maintenance (RCM). The RCM methodology focuses on preserving the core functions of a system by identifying and controlling failure modes. The team members who performed the RCM analysis can be listed as follows: • Joe Spagnoletti, City of Hastings Public Works Superintendent • Ryan Stempski PE, City of Hastings Public Works Director/City Engineer • Troy Ellison, L&S Electric, Territory Manager • Doug Junion, L&S Electric, General Manager • Kurt L. Sobczynski PE, Mechanical Engineer, Barr The RCM process consists of four elements. These elements were accomplished in a series of seven steps. The elements and steps can be listed as follows: • Element 1: Identifying System Boundary and Functions o Step 1: System Selection and Information Collection o Step 2: System Boundary Definition o Step 3: System Description/Functional Block Diagram (Appendix B, Figure 1) o Step 4: System Functions and Functional Failures • Element 2: Identify Specific Failure Modes that Could Potentially Produce Functional Failures o Step 5: Failure Mode and Effects Analysis • Element: 3: Prioritize Failure Modes o Step 6: Logic Tree Analysis • Element: 4: Task Selection and Evaluation o Step 7: Task Selection and Evaluation X-A-01 (a,b) 2 A maintenance plan was developed because of this exercise. The maintenance plan includes turbine and generator major and minor inspections as well as electrical and vibration testing and monitoring. An economic analysis was performed to determine the present value of the estimated operating and maintenance (O&M) costs, and to compare these costs to the present value of the revenue for power generation over the next 25 years. The results of the economic analysis can be listed as follows: Projected power production revenue: $10,100,000 Estimated O&M costs: $12,400,000 Net cash (revenue – O&M): -$2,300,000 O&M % of revenue: 122% The details of the economic analysis and associated assumptions can be found later in this document. X-A-01 (a,b) 3 2 Element 1: Identify System Boundaries and Functions The first element identifies the system boundary and functions. Identification of the system boundary includes listing the equipment that will be covered in this study and identifying the functions of the entire system collectively as well as the individual system components. The sources for the data that was used in this element of the process include: • Equipment list • Operating and maintenance manual from Voith Hydro Services (turbine generator OEM) 2.1 Step 1: System Selection and Information Collection The purpose of this step is to select the systems that are going to be analyzed and to determine the level of assembly on which the analysis will be performed. This step was performed as a group during a Team’s meeting. The group consisted of Kurt Sobczynski, as facilitator and engineer; Joe Spagnoletti, as owner & operator; Doug Junion, mechanical and electrical maintenance technician; and Troy Ellison, as facilitator. The hydroelectric plant was divided into three sub-systems for the purposes of this study. These three sub-systems contain all the equipment needed for the operation of the plant. The sub-systems selected for study are: 1. Sub-system 1 Hydro Turbine Generator #1 2. Sub-system 2 Hydro Turbine Generator #2 3. Sub-system 3 General Plant The level of assembly refers to the amount of detail that each component of each system and sub-system are analyzed. It was decided that for this study the level of assembly would refer to the following: 1. Single large or unique assets or components for the mechanical system. 2. Hydraulic and electronic controls, switches and transformers will be treated and analyzed as “black box’ systems. 2.2 Step 2: System Boundary Definition The purpose of this step was to identify the boundaries of the three sub-systems and to list the components of each system. This step was also performed as a team during a meeting. X-A-01 (a,b) 4 The turbine generator boundaries were selected to begin at the intake flumes and stop at the draft tubes for each machine. Included with the turbine generators were all the electrical equipment associated with the generators. The general plant system boundaries were selected to include all the auxiliary equipment not included with the turbine generators. The systems, sub-systems, and equipment contained in the boundaries can be listed as follows: System Hydroelectric Plant City of Hastings Sub-system 1: Hydro Turbine/Generator #1 1. Gate case, control servo, linkage, and HPU 2. Runner hub and pitch control servo and linkage 3. Turbine casing 4. Turbine and generator thrust and guide bearings. 5. Speed changer 6. Generator field, stator 7. Oil system 8. Cooling water system 9. Seal water system 10. Electronic speed governors and turbine controls 11. Static excitation and voltage controls 12. Switchgear and protective relays Sub-system 2: Hydro Turbine/Generator #2 1. Gate case, control servo, linkage, and HPU 2. Runner hub and pitch control servo and linkage 3. Turbine casing 4. Turbine and generator thrust and guide bearings. 5. Speed changer 6. Generator field, stator 7. Oil system X-A-01 (a,b) 5 8. Cooling water system 9. Seal water system 10. Electronic speed governors and turbine controls 11. Static excitation and voltage controls 12. Switchgear and protective relays Sub-system 3: General Plant 1. Trash rack & gates a. Flume gate b. Lifting equipment c. Trash rack cleaner 2. Intake flume & draft tube 3. Station transformer 4. HVAC equipment 5. Miscellaneous equipment a. Sump pumps b. Air compressors 2.3 Step 3: System Description/Functional Block Diagram The purpose of this step was to define the system functions, determine if there are any redundancy features and key control parameters that will affect maintenance decisions. A functional block diagram (Figure 1) of the sub-systems #1 and #2 was developed. The input and output of these sub-systems was also listed. sub-systems #1 and #2 were broken down further and the individual components of each sub-system were assigned asset numbers and listed under each sub-system. The systems, sub-systems, and asset numbers are listed in Table A-2 in Appendix A. A group review of the functional block diagram (Figure 1) and the system and asset list was conducted. The following observations were made: 1. Sub-system #1 And sub-system #2, the turbine generators, are identical units and therefore the hydroelectric plant has double redundancy. This is in effect when the flow rate through the plant does not exceed the capacity of one turbine. It was pointed out that this occurs mostly in the winter season, approximately 80% of the time. X-A-01 (a,b) 6 2. The flow rate through the plant “CFS” is dictated solely the Army Corps of Engineers. The primary purpose of the dam is navigation. Electric power generation is secondary. Therefore, during the summer months power generation is limited to maintain water for the locks and in the winter a minimum flow must be passed though the spillway for environmental purposes also limiting power production. 3. Protection features such alarms, interlocks, and trips for vibration, temperatures, and load rejection are included in the control logic for the hydro turbine governors. The sole purpose of the hydroelectric power plant is to convert the energy from the river into electric power. The electric power is sold to the local utility. The main season for generating hydropower is in the winter since the river traffic is stopped and the water flow is passed for environmental purposes and hydropower generation. 2.4 Step 4: System Functions and Functional Failures The purpose of this step was to define the functions of the components for each of the sub-systems and to describe the functional failure(s) of this component. The list of assets was reviewed, and the functions and functional failures was determined. The emphasis was on the loss of function and not the failure of the component. During this analysis it became apparent that the functions of sub-system’s #1 and #2, the turbine generators, are identical so the analysis was performed on one unit only and copied to the other machine. It was also realized that the potential preventative maintenance activities for the electrical power transmission equipment were identical and that the individual functions of each electrical cabinet were not relevant. Therefore, the electrical power transmission components were grouped into a common sub- system and treated as a “black box” and given a common function and failure mode. The functional block diagram (Figure 1), the asset list, and the system functions and failures are presented in Table A-1. X-A-01 (a,b) 7 3 Element 2: Identify Specific Failure Modes that Could Potentially Produce Functional Failures The second element identifies the specific failure modes that could hinder the system and equipment functions. A Failure Mode and Effects Analysis (FMEA) was performed to identify the failure modes that could defeat the functions. An initial prioritization of the functions and failure modes was also conducted. The FMEA and the prioritization are presented in chart form in a spreadsheet located in the Table A-3. 3.1 Step 5: Failure Mode and Effects Analysis (FMEA) The purpose of this step was to connect the system functions and the system components by directly identifying specific hardware failure modes that could produce the unwanted functional failures. The System Functions and Functional Failure list developed in Step #4 was reviewed. Failure Modes were assigned to each functional failure as described below: • The failure mode is the reason or cause for the component failing to perform. • A failure cause is the effect that caused the failure mode. For example, the first asset analyzed, Asset #100 Kaplan Runner, the failure mode was cavitation and wear on the runner. Cavitation is the spalling and uneven wear on the downstream side of the runner blades. The potential causes (failure causes) of cavitation and wear are the improper adjustment of the blade pitch and impact from foreign objects. The effects of the failures were also evaluated on the local sub- system, the system, and the entire plant. The failure modes that affect both turbines, and thus the plant, were determined to require further analysis to determine if preventative maintenance activities are applicable. It was also determined that the failure modes that effect only one of the turbines would still require further analysis since the costs of repair of the turbine due to failure outweigh the costs of the preventative maintenance. The only failure modes that qualified for run to failure status were connected to the HVAC equipment in the plant. X-A-01 (a,b) 8 4 Element 3: Prioritize Failure Modes The third element prioritizes the functions and failure modes uncovered during the FMEA utilizing a Logic Tree Analysis (LTA) approach. LTA is an analytical method that uses deductive logic to guide though a process used to draw correct conclusions. The results of the LTA are presented in chart form in a spreadsheet located in Table A-4. 4.1 Step 6: Logic Tree Analysis (LTA) The purpose of this step is to evaluate and categorize the failure modes to determine if preventative maintenance activities are warranted. Each of the Failure Modes from Step #5 that required analysis, was subjected to the following questions. The first question was that under normal conditions will the operator be aware that the failure mode has occurred. If the answer to that question is yes, then the failure is deemed evident. The second question asks whether the failure mode causes a safety problem, and the final question is does the failure mode cause an outage for the system. Categories based upon these answers are assigned to each of the failure modes as follows: Safety = A Outage = B Minor = C Hidden = D Categories A or D/A, B or D/B are candidates for preventative maintenance activities while category C and D/C are candidates for run to failure (RTF). Only three failure modes were Category C and deemed run to failure, the remainder of the failure modes were carried onto Step #7. X-A-01 (a,b) 9 5 Element 4: Task Selection and Evaluation The fourth element is the identification of preventative maintenance activities to address the failure modes selected in Step #6. 5.1 Step 7: Task Selection The purpose of this step is to select preventative maintenance tasks (PM’s) for each of the failure causes. Each failure cause identified in Step #6 was reviewed based on the following seven question criteria: • Q1: Is the age reliability relationship for this failure known? • Q2: Are there any applicable time dependent (td) tasks? • Q3: Are there any applicable condition dependent (cd) tasks? • Q4: Is this a category "d" failure mode? • Q5: Are there any applicable failure finding (ff) tasks? • Q6: Are any of these tasks effective? • Q7: Can a design modification eliminate the failure mode or effects? Based upon the results of these questions, candidate PM tasks and the frequency of these tasks were selected. In Question #1, the age reliability relationship refers to the wear rate of a component. This question asks based on operating time or cycles is the wear or degradation of the component known and constant so that a failure time can be predicted. Question #2 follows on Question #1 by asking if there are any applicable time or life cycle dependent tasks or PM’s that can be performed. Question #3 asks if there are any PM’s that can be performed that will be able to detect the onset of failure, Question #4 asks if the failure mode is a category “D” or hidden failure. A hidden failure is unknown to an operator and may also not be time dependent. Question #5 asks if there are any tasks that can be used to discover the failure such as internal inspections. Question #6 asks if any of the PM’s suggested are effective. For this exercise we recommended PM’s that L&S currently use in hydroelectric industry. The final question asks whether a design modification of the component could eliminate the failure mode. The results of the task election process can be seen in Table A-5. The list of recommended preventative maintenance activities is presented in chart form in Table A-6. This list includes the following: 1. Covered Equipment 2. Scope of work 3. Recommended Frequency 4. Cost Estimate X-A-01 (a,b) 10 It should be noted that a substantial driver in determining the PM frequency was the FERC Part 12D regulatory requirement for dewatering the turbine forebays and tailraces every 5 years for inspection. Dewatering costs will also consume a substantial amount of the maintenance budget. 5.2 Economic Evaluation of Recommended Maintenance An economic evaluation was performed by balancing the cost of the recommended maintenance over the next 25 years with the projected revenue produced by power generation. 5.2.1 Assumptions and Clarifications The following assumptions were made in this evaluation and in the full process described further in this document: • The annual power generation revenue is estimated to be $716,500. It is based on a budget number for 2024 provided by the City of Hastings. A cost escalation for future power sale price has not been included. • The historical annual revenue data from 2006 to 2022 was also provided by the City of Hastings. The year 2006 was the first full year of power generation revenue data. The average power production was determined from the historical data to be $888,115. See Table 5-1. • The rate of return for the power generation and the interest rate on the maintenance costs have been assumed to be constant over the next 25 years at 5%. • Repair and maintenance cost escalation has not been included in the maintenance costs estimates. • Repair and maintenance cost estimates were provided by L&S Electric. • The maintenance intervals are based on typical industry requirements. Sit specific usage, wear, and damage may affect the typical maintenance timing. It should be noted that the recommended maintenance program is cyclical and begins again in 25 years. • The equipment lists, and subsequent recommended preventative maintenance tasks were developed in conjunction with L&S Electric and the City of Hastings. Barr did not visit the site to assess or document the equipment and is not responsible for any omitted components or equipment. • An annual miscellaneous maintenance cost of $25,000 was added to account for small repairs not included in specific line items. This is in addition to $44,000 in line item 6354 Repairs & Maintenance Equipment from the budget supplied by the City of Hastings. The miscellaneous maintenance cost is included in the overall maintenance costs and line item 6354 is included in the operating costs. X-A-01 (a,b) 11 • It was assumed for this study that the current condition of both turbine/generators was such that a 25-yr major inspection and generator rewind is required for both units. It should be noted that this is a conservative scenario. It is possible that the units are in better condition and that a 10-yr minor inspection could be performed to determine the condition of the units. However, it would be prudent to anticipate the more conservative requirement. • The estimated annual operating costs for the hydroelectric plant are $450,000 and were provided by the City of Hastings. X-A-01 (a,b) 12 Table 5-1 History of Revenues -Electricity (provided by the City of Hasting) Year Jan Feb March April May June July August Sept Oct Nov. Dec. Total 2003 $- $- $- $- $- $- $- $- $- $69,997 $70,636 $78,533 $219,165 2004 $59,845 $59,270 $87,281 $82,234 $58,661 $74,626 $- $136,612 $67,629 $- $- $- $626,159 2004 $- $- $- $- $- $- $- $- $- $68,215 $- $143,703 $211,918 2005 $98,169 $93,577 $103,093 $56,733 $72,122 $64,149 $94,054 $116,055 $111,246 $- $- $- $809,198 2005 $- $- $- $- $- $- $- $- $- $67,860 $192,071 $98,993 $358,924 2006 $115,810 $88,425 $81,643 $54,453 $61,444 $89,607 $101,410 $89,986 $54,072 $59,338 $63,983 $98,041 $958,213 2007 $110,881 $81,426 $85,063 $51,955 $79,694 $104,207 $103,659 $96,780 $100,568 $90,086 $102,555 $113,879 $1,120,754 2008 $92,761 $80,057 $100,020 $83,849 $68,585 $75,184 $116,089 $108,934 $93,398 $117,983 $114,113 $99,507 $1,150,481 2009 $98,703 $105,942 $98,267 $65,992 $78,700 $94,305 $95,391 $94,269 $74,420 $95,788 $90,087 $97,725 $1,089,590 2010 $97,858 $67,912 $54,367 $48,452 $62,399 $71,269 $77,911 $86,717 $84,807 $69,968 $92,628 $116,057 $930,344 2011 $94,394 $87,998 $75,284 $41,170 $41,239 $46,755 $26,118 $70,903 $98,593 $141,031 $76,910 $110,949 $911,343 2012 $80,232 $82,411 $102,229 $99,056 $61,221 $49,437 $79,551 $108,935 $76,780 $66,975 $88,598 $86,393 $981,820 2013 $74,176 $105,269 $71,815 $78,610 $45,737 $52,769 $70,257 $111,500 $82,605 $72,223 $87,926 $94,735 $947,624 2014 $96,570 $92,189 $100,788 $56,525 $38,823 $36,885 $49,265 $106,662 $74,476 $101,848 $80,138 $75,659 $909,827 2015 $94,954 $94,509 $95,361 $91,765 $66,536 $67,652 $86,252 $93,660 $84,228 $83,028 $69,227 $72,651 $999,822 2016 $178,497 $82,075 $138,546 $64,681 $64,121 $70,655 $44,309 $66,429 $48,225 $52,825 $61,060 $61,479 $932,900 2017 $75,917 $61,144 $67,031 $56,971 $32,001 $64,823 $87,620 $83,100 $76,406 $46,538 $66,607 $59,436 $777,594 2018 $62,236 $59,790 $60,370 $47,253 $37,746 $47,604 $43,536 $83,912 $64,685 $48,332 $64,646 $71,909 $692,018 2019 $85,517 $84,643 $66,194 $36,360 $34,599 $42,538 $44,479 $68,448 $55,768 $35,741 $49,230 $58,631 $662,148 2020 $57,480 $49,876 $42,468 $38,277 $39,491 $35,364 $33,031 $58,320 $55,615 $54,870 $53,299 $58,875 $576,967 2021 $69,787 $60,904 $52,539 $50,646 $59,280 $69,093 $61,350 $54,769 $61,320 $73,592 $55,610 $61,200 $730,088 2022 $66,760 $57,323 $58,199 $47,038 $30,286 $43,092 $82,676 $82,797 $73,638 $55,522 $65,009 $64,099 $726,439 2023 $78,589 $65,655 $82,107 $43,451 $- $- $- $- $- $- $- $- $- Total $1,789,136 $1,560,395 $1,622,666 $1,195,472 $1,032,684 $1,200,014 $1,296,956 $1,718,787 $1,438,480 $1,471,760 $1,544,330 $1,722,455 $17,323,333 X-A-01 (a,b) 13 5.2.2 Economic Analysis Approach The analysis was performed by calculating the present value of the projected power production revenue and subtracting the estimated present value of the operating and maintenance (O&M) costs over the next 25 years. The present value analysis calculates the current value of a future cash flow or investment that will be paid or disbursed at a future date, discounted back to the present at a given interest rate. The purpose of the following calculations is to determine the current value of the cash flows and investments of the Hastings Hydroelectric Plant to make an accurate assessment of the financial viability of the investment. 5.2.2.1 Present Value Given Future Investment/Cash Flow The present value formula calculates the current worth of a future cash flow or investment that will be received or paid at a future date, discounted back to the present at a given interest rate. Present Worth (P/F, i, n) Operational cycle (n) 25 years Interest rate (i) 5 % Present value (P) Future value (F) or the Factor (P/F) for i=5%, n=25 can be looked up in a table in which case: 5.2.2.2 Present Value Given Annual Investment/Cash Flow The series present worth formula calculates the equivalent present value of equal cash flows received or disbursed at regular intervals over a specific period of time at a given interest rate. Series Present Worth (P/A, i, n) Operational cycle (n) 25 years Interest rate (i) 5 % Present value (P) Annual worth or costs (A) 𝑃𝑃=𝐹𝐹(1 +𝑖𝑖)−𝑛𝑛 𝑃𝑃=�𝑃𝑃𝐹𝐹��𝐹𝐹 X-A-01 (a,b) 14 or the Factor (P/A) for i=5%, n=25 can be looked up in a table in which case: 5.3 Economic Analysis Results The present value of the projected revenue of the hydroelectric plant was determined to be $10,100,000. The present value of the O&M costs were determined to be $12,400,000. The present value of the net cash flow is a negative $2,300,000. In this case the O&M costs are 122% of the projected power revenue. According to the US Energy Information Administration (EIA) in the Annual Energy Outlook for 2022, the average O&M costs for a conventional hydroelectric power plant were $43.78 per KW. The hydro turbines at the City of Hasting facility are rated at 2200 KW for each unit. The annual combined O&M costs for both units based on the EIA 2022 average should then be approximately $193,000. The present value for the O&M costs for the next 25 years based on this average are $2,700,000. These O&M costs are approximately 27% of the present value of the projected power revenue. The present values from the current projection and from a projection based on the O&M costs from the IEA 2022 average are listed in the Table 5-2. The projected annual cash flow can be seen in Table 5-3. The present value calculations can be seen in Appendix C. Table 5-2 Present Value Analysis Results Revenue Current Projection Projection based on EIA 2022 Projected Power Revenue $10,100,000 $10,100,000 O&M Costs $12,400,000 $2,700,000 Net Cash (Revenue -O&M) -$2,300,000 $7,400,000 O&M % of Revenue 122 % 27 % 𝑃𝑃=(1 +𝑖𝑖)𝑛𝑛−1𝑖𝑖(1 +𝑖𝑖)𝑛𝑛 𝑃𝑃=�𝑃𝑃𝐴𝐴��𝐴𝐴 X-A-01 (a,b) 15 Table 5-3 Projected Cash Flow Year Projected Revenue Operating Costs Maintenance Costs O&M Total Cash Flow Annual 3 Year 5year 10 Year 25 Year Total 0 $716,500 $450,000 $60,000 - - - 3,050,000 $3,110,000 $3,560,000 $2,843,500 1 $716,500 $450,000 $60,000 - - - - $60,000 $510,000 $206,500 2 $716,500 $450,000 $60,000 - - - - $60,000 $510,000 $206,500 3 $716,500 $450,000 $60,000 $45,000 - - - $105,000 $555,000 $161,500 4 $716,500 $450,000 $60,000 - - - - $60,000 $510,000 $206,500 5 $716,500 $450,000 $60,000 - $714,000 - - $774,000 $1,224,000 $507,500 6 $716,500 $450,000 $60,000 $45,000 - - - $105,000 $555,000 $161,500 7 $716,500 $450,000 $60,000 - - - - $60,000 $510,000 $206,500 8 $716,500 $450,000 $60,000 - - - - $60,000 $510,000 $206,500 9 $716,500 $450,000 $60,000 $45,000 - - - $105,000 $555,000 $161,500 10 $716,500 $450,000 $60,000 - - $1,020,000 - $1,080,000 $1,530,000 $813,500 11 $716,500 $450,000 $60,000 - - - - $60,000 $510,000 $206,500 12 $716,500 $450,000 $60,000 $45,000 - - - $105,000 $555,000 $161,500 13 $716,500 $450,000 $60,000 - - - - $60,000 $510,000 $206,500 14 $716,500 $450,000 $60,000 - - - - $60,000 $510,000 $206,500 15 $716,500 $450,000 $60,000 $45,000 $714,000 - - $819,000 $1,269,000 $552,500 16 $716,500 $450,000 $60,000 - - - - $60,000 $510,000 $206,500 17 $716,500 $450,000 $60,000 - - - - $60,000 $510,000 $206,500 18 $716,500 $450,000 $60,000 $45,000 - - - $105,000 $555,000 $161,500 19 $716,500 $450,000 $60,000 - - - - $60,000 $510,000 $206,500 20 $716,500 $450,000 $60,000 - - $1,020,000 - $1,080,000 $1,530,000 $813,500 X-A-01 (a,b) 16 Year Projected Revenue Operating Costs Maintenance Costs O&M Total Cash Flow Annual 3 Year 5year 10 Year 25 Year Total 21 $716,500 $450,000 $60,000 $45,000 - - - $105,000 $555,000 $161,500 22 $716,500 $450,000 $60,000 - - - - $60,000 $510,000 $206,500 23 $716,500 $450,000 $60,000 - - - - $60,000 $510,000 $206,500 24 $716,500 $450,000 $60,000 $45,000 - - - $105,000 $555,000 $161,500 25 $716,500 $450,000 $60,000 - - - 3,050,000 $3,110,000 $3,560,000 $2,843,500 X-A-01 (a,b) 17 The O&M costs for the City of Hastings hydroelectric plant are more than four times greater than the average as reported by the EIA. Some potential causes for the higher-than-average costs are: • Economy of scale – The O&M costs for smaller projects tend to higher than the larger projects. Much of the regulatory inspection, operating staff, and maintenance are performed and needed on both small and large projects, however the larger projects have more income to offset these costs. • Accessibility - The difficultly in accessing and in dewatering the facility greatly increase the costs of inspection and maintenance. • Power Production – The primary purpose of the Lock and Dam is for navigation of the river and not for power generation. Power production is limited due to the need to keep water available for navigation purposes. • Complexity of the Turbine/Generators - The turbines installed in this facility are Kaplan style turbines with speed changers that are coupled to synchronous generators. This style of turbine was chosen to accommodate the variable heads and high water flows indicative of a facility that is integrated with a navigable Lock and Dam. While this type of turbine is efficient in this application, it is by its nature complex and, therefore, requires more maintenance and upkeep than a Francis or propeller style turbine. • Power costs – The power produced by the facility is purchased by the local utility. The rate for this power is a function of the avoided variable costs for one of the Utilities existing power generating plants and an accredited capability based on the current generation in either the summer or winter season. It is possible that a higher rate could be negotiated that will lower the effect of the O&M costs. X-A-01 (a,b) Appendices X-A-01 (a,b) Appendix A Tables X-A-01 (a,b) Table A-1 System Functions and Functional Failures Sub-System: Asset # Description Function # Functional Failure # Function/Functional Failure Description Turbine 100 Kaplan Runner 1.0 Convert Hydraulic Energy of Water into Torque 1.1 Inefficient Conversion of Hydraulic Energy to Torque (80%) 1.2 Complete Failure to Convert Hydraulic Energy to Torque 101 Trunnion Seal 2.0 Seal Turbine Blade & Separate Governor Oil in Hub from River Water 2.1 Loss Of Oil into River 2.2 Water Contamination in Oil System 102 Mechanical shaft seal 3.0 Seal Runner and Turbine Shaft 3.1 River Water Leaks into Power Plant 3.2 Water Contamination in Oil System of River Side Guide Bearing 103 Pitch control Servo 4.0 Adjust Pitch of Kaplan Blade to Improve Turbine Efficiency 4.1 Pitch Control Will Not Move 4.2 Pitch Controls Out of Adjustment 104 Runner side guide bearing 5.0 Position, Align, And Compensate for Radial Forces from Turbine Shaft 5.1 Misaligned (Radial) Turbine Shaft 5.2 Catastrophic Bearing Failure 105 Thrust bearing 6.0 Position, Align, And Compensate for Axial Forces from Turbine Shaft 6.1 Misaligned (Radial) Turbine Shaft 6.2 Misaligned (Axial) Turbine Shaft 6.3 Catastrophic Bearing Failure 106 Wicket gates & controls 7.0 Adjust Position of Wicket Gate to Increase and Decrease Water Flow Through the Turbine 7.1 Unable to Increase or Decrease Water Flow Though Turbine 7.2 Unable to Shut Off Water Flow Through Turbine 107 Brake system 8.0 Stop Turbine from Rotating When Speed is Lower Than 96 RPM 8.1 Will Not Stop Turbine from Rotating 8.2 Will Not Allow Turbine to Rotate Reducer 108 Gearbox Speed Reducer 9.0 Increase Turbine Shaft Speed to Synchronous Generator Speed. Transmit Power from Turbine to Generator 9.1 Unable To Transmit Power from Turbine to Generator Generator 109 Rotating Electric Generator 10.0 Convert Torque from Turbine into Electricity 10.1 Loss Of Electrical Power Generator Exciter 110 Generator Electronic Exciter #1 11.0 Energize Generator Field 11.1 Cannot Energize Field or Start Up Unit 12.0 Provide Voltage Control 12.1 Unable to Control Voltage or Frequency Governor 111 HPU 13.0 Provides Hydraulic Power to Wicket and Blade Pitch Control & Brakes 13.1 Cannot Open Wicket Gates or Control Pitch of Blades or Release Brakes 112 Accumulator 14.0 Stores Hydraulic Power to Balance Operation of Hydraulic Pumps and Motors 14.1 Cannot Open Wicket Gates or Control Pitch of Blades 15.0 Stores Hydraulic Power to Allow a Final Closing of Wicket Gates in the Event of Loss of Station Power 15.1 Cannot Stop Rotation of Turbine (Runaway) 113 Governor Oil Tank 16.0 Store Control Oil for Both Wicket and Kaplan Control Governors 16.1 Integrity, Loss of Oil into River 16.2 No Control Oil for Governor, Cannot Control Wicket Gates or Blade Pitch 114 LP1 Controls Hydraulic Main Floor 17.0 Hydraulic Switches & Controls to Regulate Wicket Gate and Kaplan Servo's 17.1 Cannot Open Wicket Gates or Control Pitch of Blades 115 HPU Motor #1 18.0 Provide Hydraulic Pressure For HPU 18.1 No Pressure, Cannot Open Wicket Gates or Control Pitch of Blades 116 HPU Motor #2 19.0 Provide Hydraulic Pressure For HPU 19.1 No Pressure, Cannot Open Wicket Gates or Control Pitch of Blades X-A-01 (a,b) Sub-System: Asset # Description Function # Functional Failure # Function/Functional Failure Description Governor (Cntd) 117 Accumulator Motor Fluid Trans 20.0 Moves Control Oil from Accumulator to Oil Cooler Heat Exchanger 20.1 Control Oil Will Overheat, Cannot Control Wicket Gates of Control Pitch of Blades Lube Oil System 118 Filtration Assembly 21.0 Removes Contaminants from Lube Oil 21.1 Contaminated Lube Oil, Decreased Bearing Life 21.2 Plugged Filter, No Lube Oil Flow, Bearing Failure 119 Filtration System Motor 22.0 Circulates Lube Oil Through Filters 22.1 Insufficient Lube Oil Pressure 120 Lube Oil Motor 23.0 Drives Lube Oil Pump 23.1 No Lube Oil Pressure 121 Lube Oil Pump 24.0 Pumps Lube Oil Through System, Minimum Pressure 24.1 Insufficient Lube Oil Pressure 24.2 No Lube Oil Pressure 122 Heat Exchanger Cooling Fan Motor 25.0 Cools Lube Oil Maximum Allowed Lube Oil Temp 25.1 Lube Oil Temp Above Maximum 123 Heat exchanger 26.0 Cools Lube Oil Maximum Allowed Lube Oil Temp 26.1 Lube Oil Temp Above Maximum 26.2 Lube Oil Temp Below Minimum 26.3 Integrity Of Heat Exchanger, Loss of Lube Oil 124 Lube Oil Tank #1 27.0 Stores Lube Oil & Governor Control Oil 27.1 Loss Of Oil into River 27.2 No Lube Oil for Turbine Electrical Switchgear - Electrical Switchgear “Black Box” 28.0 Transfer electrical power, signals, and control for operation of Turbine generator 125 Cabinet S4 for Generator #1 28.1 Electrical failure results in the shutdown of the turbine and the inability to generate power 126 Ground Fault Relay 127 Gen Differential Relay 128 Gen Protection System 129 ITE Breaker 4.76KV 130 Cabinet S5 for Generator #1 131 Misc. gauges and indicator readouts VFD cabinet Unit #1 132 Unit #1 HPU 29.0 Provides power to HPU 29.1 control logic keeps turbine offline 133 Unit #1 LOP 30.0 Provides power to lube oil pump 30.1 control logic keeps turbine offline 134 Prime Sump Pump 31.0 Provides power to HPU 31.1 prime sump pump will not pump 135 Secondary Sump Pump 32.0 Provides power to HPU 32.1 secondary sump pump will not pump X-A-01 (a,b) Table A-2 System Work Breakdown Structure Step 3-4 Sub-System Asset # Description MFG Serial # Unit #1 Turbine 100 Kaplan Runner Voith - 101 Trunnion Seals Voith - 102 Shaft Mechanical Seal Voith - 103 Pitch Control Servo Voith - 104 Runner Side Guide Bearing Voith - 105 Thrust Bearing Voith - 106 Wicket Gates & Controls Voith - Reducer 108 Gearbox Speed Reducer Voith H19631 Generator 109 Rotating Electric Generator Yaskawa 515386101 Exciter 110 Electronic Exciter #1 Basler DECS-200 - Governor 111 HPU Continental - 112 Accumulator Wilkes & McLean - 113 Governor Oil Tank - - 114 LP1 Controls Hydraulic Main Floor - - 115 HPU Motor #1 Dayton VM3558 116 HPU Motor #2 Baldor CM3714T 117 Accumulator Motor Fluid Trans Baldor VM3558 Lube Oil System 118 Filtration Assembly - - 119 Filtration System Motor Baldor VM3558 120 Lube Oil Motor Leeson 170165.6 121 Lube Oil Pump - - 122 Heat Exchanger Cooling Fan Motor Baldor VM3554T 123 Heat Exchanger Thermal Trans Z7611 X-A-01 (a,b) Sub-System Asset # Description MFG Serial # Electrical Switchgear 125 Cabinet 54 for Generator #1 - - 126 Ground Fault Relay Bassler BE1-59N Mounted on S4 127 Gen Differential Relay Bassler BE1-87G Mounted on S4 128 Gen Protection System Bassler BE1-GPS Mounted on S4 129 ITE Breaker 4.76KV - - 130 Cabinet 55 for Generator #1 - - 131 Misc. Gauges and Indicator Readouts - Mounted on S3 132 VFD Cabinet Unit #1 - - 133 Unit #1 LOP ABB ACQ550-U1.015A-4 134 Unit #2 Chiller VFD Mitsubishi FRF84000170E3N6 135 Prime Sump Pump Mitsubishi FRF74000380NA 136 Secondary Sump Pump ABB 22C-D030N103 Unit #2 Turbine 200 Kaplan Runner Voith - 201 Trunnion seals Voith - 202 Shaft Mechanical Seal Voith - 203 Pitch control Servo Voith - 204 Runner side guide bearing - - 205 Thrust bearing - - 206 Wicket gates & controls Voith - 207 Brake system Voith - Reducer 208 gearbox speed reducer Voith H19632 Generator 209 2000 KW Rotating Electric Generator Yaskawa 515386102 Exciter 210 Electronic Exciter #1 Basler DECS-200 Mounted on S3 Governor 211 HPU Continental - 212 Accumulator Wilkes & McLean - 213 LP2 Controls Hydraulic Main Floor - - 214 HPU Motor #1 Baldor 36VF71B 215 HPU Motor #2 Baldor CM3714T 216 Accumulator Motor Baldor VM3558 217 Governor oil tank -- X-A-01 (a,b) Sub-System Asset # Description MFG Serial # Lube Oil System 218 Filtration Assembly - - 219 Filtration System Motor Baldor VM3558 220 Lube Oil Motor Leeson 170165.6 221 Lube Oil Pump - - 222 Heat exchanger motor Baldor VM3554T 223 Heat exchanger Thermal Trans Z7677 224 Lube oil tank 2 - - Electrical Switchgear 225 Cabinet 52 for Generator #2 - - 226 Ground Fault Relay Bassler BE1-59N Mounted on S2 227 Gen Differential Relay Bassler BE1-87G Mounted on S2 228 Gen Protection System Bassler BE1-GPS Mounted on S2 229 ITE Breaker 4.76 KV - - 230 Cabinet 55 for Generator #2 - - 231 Misc. gauges and indicator readouts - Mounted on S3 232 VFD cabinet Unit #2 - - 233 Unit #2 HPU VFD controller - AC5550-U1.015A-4 234 Unit #2 LOP VFD controller - 22BD012N104 235 Starter intake fan VFD controller - - 236 Starter exhaust fan VFD controller -- X-A-01 (a,b) Table A-3 Failure Mode and Effects Analysis (FMEA) Functional Failure # Asset # Asset Description Failure Mode # Failure Mode Description Failure Cause # Failure Cause Description Local System Plant LTA Comments 1.1 100 & 200 Kaplan Runner 1.00 Cavitation And Wear on Runner 1.11 Normal Wear on Runner (Age Related) x x x Even Though Effects Only One Turbine, Both Turbines Are Needed to Pass CFS At Some Conditions, Cost of Failure Too Great (Red). 1.12 Cavitation Caused by Improper Adjustment of Blade Pitch x x x 1.2 100 &200 Kaplan Runner 1.20 Catastrophic Failure of Runner 1.21 Impact Damage from Foreign Object x x x Plant Issue Due to Environmental Contamination 1.22 Impact Damage from Turbine Gate Component x x x 2.1 101 & 201 Trunnion Seal 2.10 Worn Seal 2.11 Normal Wear on Seal (Age Related) x x x x Plant Issue Affects Both Turbines 2.12 Mechanical Failure of Seal Keepers x x x x 2.2 102 & 202 Trunnion Seal 2.20 Worn Seal 2.21 Normal Wear on Seal (Age Related) x x x 2.22 Mechanical Failure of Seal Keepers 3.1 102& 202 Mechanical Seal 3.10 Worn Seal 3.11 Normal Wear on Seal (Age Related) 3.12 Flush Water Lines Plugged Not on Trunnion Not Used on Mechanical 3.2 102& 202 Mechanical Seal 3.20 Worn Seal 3.11 Normal Wear on Seal (Age Related) Plant Issue Affects Both Turbines 3.12 Flush Water Lines Plugged Not on Trunnion Not Used on Mechanical x x x x 4.1 102 & 202 Pitch Control Servo 4.10 Servo and Linkages Frozen in Position 4.11 Servo Cylinder Scored or Damaged and Frozen into Cylinder x x x 4.12 Linkage or Bushing Bearings Broken or Severed or Frozen in Position x x x 4.2 102 & 202 Pitch Control Servo 4.20 Servo and Linkages Out of Adjustment 4.21 Linkage or Connecting Bushings Loose (Primary Control Electronic) x x x 4.22 Leaking Fittings and Servo 5.1 103 & 203 Runner Side Guide Bearing 5.10 Guide Bearing Wear 5.11 Normal Bearing Wear (Age Related) x x x 5.12 Contaminated Lube Oil (Premature Wear) x x x 5.13 Shaft Misalignment (Uneven Wear) x x x 5.2 104 & 203 Runner Side Guide Bearing 5.20 Guide Bearing Liner Failure 5.21 Contaminated Lube Oil (Premature Wear) Mechanical Seal Failure Water Contamination x x x 5.22 Shaft Misalignment (Uneven Wear) x x x 5.23 Excessive Radial Clearance x x x 6.1 104 & 204 Thrust Bearing 6.10 Thrust Bearing Liner Wear (Look Up) 6.11 Shaft Misalignment (Uneven Wear) x x x 6.2 104 & 204 Thrust Bearing 6.20 Thrust Bearing Liner Wear (Look Up) 6.22 Shaft Misalignment (Uneven Wear) x x x 6.3 104 & 204 Thrust Bearing 6.30 Thrust Bearing Liner Wear (Look Up) 6.31 Shaft Misalignment (Uneven Wear) x x x 6.32 Contaminated Lube Oil (Premature Wear) x x x 6.33 Excessive Radial Clearance x x x 7.1 105 & 205 Wicket Gates & Controls 7.10 Stiction in Gates and Controls 7.11 Wear In Bushings x x x 7.12 Foreign Object or Debris in Wickets x x x X-A-01 (a,b) Functional Failure # Asset # Asset Description Failure Mode # Failure Mode Description Failure Cause # Failure Cause Description Local System Plant LTA Comments 7.2 105 & 205 Wicket Gates & Controls 7.20 Frozen Or Broken Gates and Controls 7.21 Wear In Bushings x x x 7.22 Foreign Object or Debris in Wickets x x x 8.1 106 & 206 Brake System 8.10 Worn Brake Shoes 8.11 Normal Wear on Linings (Age Related) x x x 8.2 106 & 206 Brake System 8.20 Failed Brake Mechanism 8.21 Excessive Stress on Brake Components Caused by Overspeed x x x 9.1 107 & 207 Gearbox Speed Reducer 9.10 Gearbox Bearing or Gear Failure 9.11 Bearing Failure (Age Related) x x x 9.12 Bearing Failure (Lube Related) x x x 9.13 Gear Failure (Age Related) x x x 9.14 Gear Failure (Lube Related) x x x 9.15 Coupling Failure (Turbine /Gearbox) x x x 9.16 Coupling Failure (Gearbox Generator) x x x 9.17 Gearbox Seal Failure (Age Related) x x x 10.1 108 & 208 Rotating Electric Generator 10.10 Generator Stator or Field Failure 10.11 Rotor Winding Resistance (Age Related) x x x 10.12 Stator Winding Resistance (Age Related) x x x 10.13 Stator Wedges or Bar Failures x x x 10.14 End Winding Supports and Connections Failure x x x 10.15 Air Cooling and Ventilation Failure x x x 10.16 Upstream And Downstream Generator Bearing Failures x x x 10.17 Diode Failure x x x 11.1 109 & 209 Electronic Exciter #1 11.1 Electronic Failure 11.11 Electronic Failure x x x 12.1 109 & 209 Electronic Exciter #1 12.10 Electronic Failure 12.11 Electronic Failure x x x 13.1 110 & 210 HPU 13.10 No Control Hydraulic Oil Pressure or Flow 13.11 Electronic Failure x x x 14.11 111 & 211 Accumulator 14.10 Low Pressure in Bladder 14.11 Broken Bladder x x x 13.1214.12 Low Nitrogen Charge x x x 15.1 111 & 211 Accumulator 15.10 Low Pressure in Bladder 15.11 Broken Bladder x x x 15.12 Low Nitrogen Charge x x x 16.1 112 & 212 Governor Oil Tank 16.10 Corroded Oil Tank That Leaks 16.10 Corrosion Due to Age x x x 16.2 112 & 212 Governor Oil Tank 16.20 Catastrophic Failure of Oil Tank Due to Overpressure 16.22 Cannot Be Overpressure x x x 17.1 113 & 213 Lp1&2 Controls Hydraulic Main Floor 17.10 Electronic Failure 17.11 Electronic Failure x x x 18.1 114 & 214 HPU Motor #1 18.10 18.11 Motor Bearing Failure x x x X-A-01 (a,b) Functional Failure # Asset # Asset Description Failure Mode # Failure Mode Description Failure Cause # Failure Cause Description Local System Plant LTA Comments No Control Hydraulic Oil Pressure or Flow 18.12 Electronic Failure x x x 19.1 115 & 215 HPU Motor #2 19.10 No Control Hydraulic Oil Pressure or Flow 19.11 Motor Bearing Failure x x x 19.12 Electronic Failure x x x 20.1 116 & 216 Accumulator Motor Fluid Trans 20.10 Overheated Lube & Hydraulic Oil 20.11 Motor Bearing Failure x x x 20.12 Electronic Failure x x x 21.1 117 & 217 Filtration Assembly 21.10 Contaminated Filter 21.11 Defective Filter x x x 21.2 117 & 217 Filtration Assembly 21.20 Plugged Filter 21.12 Plugged Filter (Age or Pressure Drop) Trip Off Turbine x x x 21.3 118 & 218 Filtration System Motor 21.30 No Oil Pressure 21.13 Motor Bearing Failure x x x 21.14 Electronic Failure x x x 22.1 119 & 219 Lube Oil Motor 22.10 No Oil Pressure 22.11 Motor Bearing Failure x x x 22.12 Electronic Failure x x x 23.1 120 & 220 Lube Oil Pump 23.10 Pump Impeller Worn 23.11 Normal Wear (Age Related) x x x 23.2 120 & 220 Lube Oil Pump 23.20 Pump Relief Valve Improperly Set or Failed 23.21 Relief Valve Failure Components Frozen or Rusted In Position x x x 24.1 121 & 221 Heat Exchanger Cooling Fan Motor 24.10 Overheated Lube & Hydraulic Oil 24.11 Motor Bearing Failure x x x 24.12 Electronic Failure x x x 25.1 122 & 222 Heat Exchanger 25.10 Fouled Heat Exchanger 25.12 Build Up on Oil Side of Heat Exchanger or Debris on Air Side (Time Factor) x x x 25.2 122 & 222 Heat Exchanger 25.20 Thermostat Failure 25.21 Buildup of Insulating Contaminant on Temperature Sensor (Mechanical) x x x 25.3 122 & 222 Heat Exchanger 25.30 Heat Exchanger Tube Failure 25.31 Tube Rupture Due to Overheating & Corrosion x x x 26.1 123 & 223 Lube Oil Tank 1 & 2 26.10 Loss Of Integrity of Tank 26.12 Tank Failure Due to Corrosion x x x 26.2 123 & 223 Lube Oil Tank 1 & 2 26.20 Loss Of Integrity of Tank 26.21 Tank Failure Due to Corrosion x x x 27.1 Multi Electrical Switchgear 27.10 Electronic Failure 27.12 Electronic Failure x x x 28.1 134 Unit #1 &#2 HPU VFD 28.10 Electronic Failure 28.12 Electronic Failure x x x 29.1 135 Unit #1 &#2 LOP VFD 29.10 Electronic Failure 29.12 Electronic Failure x x x X-A-01 (a,b) Table A-4 Logic (Decision) Tree Analysis (LTA) Functional Failure Functional Failure # Asset # Asset Description Failure Mode # Failure Mode Description Evident Safety Outage Cat Comments - 1.1 100 & 200 Kaplan Runner 1.00 Cavitation And Wear on Runner N N Y D/B - 1.2 100 & 200 Kaplan Runner 1.20 Catastrophic Failure of Runner Y Y Y B - 2.1 101 & 201 Trunnion Seal 2.10 Worn Seal Y N Y B - 2.2 102 & 201 Trunnion Seal 2.20 Worn Seal Y N Y B Mechanical Seal Worn Seal Y N Y B Mechanical Seal Worn Seal Y N Y B - 3.1 102 & 202 Pitch Control Servo 3.10 Servo And Linkages Frozen in Position Y N Y B - 3.2 103 & 202 Pitch Control Servo 3.20 Servo and Linkages Out of Adjustment Y N Y B - 4.1 103 & 203 Runner Side Guide Bearing 4.10 Guide Bearing Wear N N Y D/B - 4.2 104 & 203 Runner Side Guide Bearing 4.20 Guide Bearing Liner Failure N N Y D/B - 5.1 104 & 204 Thrust Bearing 5.10 Thrust Bearing Liner Wear (Look Up) N N Y D/B - 5.2 104 & 204 Thrust Bearing 5.20 Thrust Bearing Liner Wear (Look Up) N N Y D/B - 5.3 104 & 204 Thrust Bearing 5.30 Thrust Bearing Liner Wear (Look Up) N N Y D/B - 6.1 105 & 205 Wicket Gates & Controls 6.10 Stiction In Gates and Controls Y N Y B - 6.2 105 & 205 Wicket Gates & Controls 6.20 Frozen or Broken Gates and Controls Y Y Y A - 7.1 106 & 206 Brake System 7.10 Worn Brake Shoes N N Y D/B - 7.2 106 & 206 Brake System 7.20 Failed Brake Mechanism Y Y Y A - 8.1 107 & 207 Gearbox Speed Reducer 8.10 Gearbox Bearing or Gear Failure Y N Y B - 9.1 108 & 208 Rotating Electric Generator 9.10 Generator Stator or Field Failure Y Y Y A - 10.1 109 & 209 Electronic Exciter #1 10.10 Electronic Failure Y N Y B - 11.1 109 & 209 Electronic Exciter #1 11.10 Electronic Failure Y N Y B - 12.1 110 & 210 HPU 12.10 No Control Hydraulic Oil Pressure or Flow Y N Y B - 13.1 111 & 211 Accumulator 13.10 Low Pressure in Bladder Y N Y B - 14.1 111 & 211 Accumulator 14.10 Low Pressure in Bladder Y N Y B - 15.1 112 & 212 Governor Oil Tank 15.10 Corroded Oil Tank that Leaks Y Y Y A - 15.2 112 & 212 Governor Oil Tank 15.20 Catastrophic Failure of Oil Tank Due to Overpressure Y Y Y A - 16.1 113 & 213 LP1&2 Controls Hydraulic Main Floor 16.10 Electronic Failure Y N Y B - 17.1 114 & 214 HPU Motor #1 17.10 No Control Hydraulic Oil Pressure or Flow Y N Y B - 18.1 115 & 215 HPU Motor #2 18.10 No Control Hydraulic Oil Pressure or Flow Y N Y B - 19.1 116 & 216 Accumulator Motor Fluid Trans 19.10 Overheated Lube & Hydraulic Oil Y N Y B - 20.1 117 & 217 Filtration Assembly 20.10 Contaminated Filter Y N Y B - 20.2 117 & 217 Filtration Assembly 20.20 Plugged Filter Y N Y B X-A-01 (a,b) Functional Failure Functional Failure # Asset # Asset Description Failure Mode # Failure Mode Description Evident Safety Outage Cat Comments - 21.1 118 & 218 Filtration System Motor 21.10 No Oil Pressure Y N Y B - 22.1 119 & 219 Lube Oil Motor 22.10 No Oil Pressure Y N Y B - 23.1 120 & 220 Lube Oil Pump 23.10 Pump Impeller Worn Y N Y D/B - 23.2 120 & 220 Lube Oil Pump 23.20 Pump Relief Valve Improperly Set or Failed N N Y D/B - 24.1 121 & 221 Heat Exchanger Cooling Fan Motor 24.10 Overheated Lube & Hydraulic Oil Y N Y B - 25.1 122 & 222 Heat Exchanger 25.10 Fouled Heat Exchanger N N N C - 25.2 122 & 222 Heat Exchanger 25.20 Thermostat Failure N N Y B - 25.3 122 & 222 Heat Exchanger 25.30 Heat Exchanger Tube Failure N Y Y D/A River Water Contamination - 26.1 123 & 223 Lube Oil Tank 1 & 2 26.10 Loss of Integrity of Tank Y Y Y D/A River Water Contamination - 26.2 123 & 223 Lube Oil Tank 1 & 2 26.20 Loss of Integrity of Tank Y Y Y D/A River Water Contamination - 27.1 Multi Electrical Switchgear 27.10 Electronic Failure Y N Y B - 28.1 134 Unit #1 &#2 HPU VFD 28.10 Electronic Failure Y N Y B - 29.1 135 Unit #1 &#2 LOP VFD 29.10 Electronic Failure Y N Y B Unit #2 Intake And Discharge Equipment 32.1 300 Trash Rack 32.10 Holes In Trash Rack Allow Debris Through Y N Y B 33.1 301 Trash Rack Cleaner 33.10 Failed Cleaner Mechanism Y N Y B 34.1 302 Intake Flume 34.10 Failed Integrity of Flume Y Y Y A 35.1 303 Draft Tube 35.10 Failed Integrity of Draft Tube Y Y Y A Electrical 36.1 304 Backup Generator 36.10 Failed Generator Y Y N A 37.1 305 Breaker De-Watering Use 37.10 Electronic Failure N N N C 38.1 306 Battery Storage System 38.10 Batteries Discharged; No Power Available N Y Y D/A 39.1 307 Sump Starter/Control 39.10 Electronic Failure N Y Y A 40.1 308 Starter/Relays-Sump Pumps 40.10 Electronic Failure N Y Y A 41.1 309 Trolley & Hoist Controls/Disconnect 41.10 Electronic Failure N N Y B Needed to Correct Other Failures 42.1 Multi Common Power Elec Tx Equip 42.10 Electronic Failure N N Y B Sump Pumps and Compressors 43.1 Multi Submersible Sump Pump 43.10 Pump Failure N N Y B 44.1 326 Emergency B/U Pump 44.10 Pump Failure N Y Y A 45.1 234 Emergency B/U Pump Motor 45.10 Electronic Failure N Y Y A HVAC 46.1 Multi Starter Exhaust Fan VFD 46.10 Electronic Failure N N N C X-A-01 (a,b) Table A-5 Task Selection Functional Failure # Asset # Asset Description Failure Mode # Failure Mode Description Failure Cause # Failure Cause Description Question # Candidate task Effective Info Est Freq Comments 1 2 3 4 5 6 7 1.1 100 & 200 Kaplan Runner 1.00 Cavitation And Wear on Runner 1.11 Normal Wear on Runner (Age Related) N N N Y Y Y N Turbine Minor Inspection 5yr 5yr 1.12 Cavitation Caused by Improper Adjustment of Blade Pitch N N N N Y Y N Turbine Minor Inspection 5yr 5yr 1.2 100 & 200 Kaplan Runner 1.20 Catastrophic Failure of Runner 1.21 Impact Damage from Foreign Object N N N N Y Y N Turbine Minor Inspection 5yr 5yr 1.22 Impact Damage from Turbine Gate Component N N N N Y Y N Turbine Minor Inspection 5yr 5yr 2.1 101 & 201 Trunnion Seal 2.10 Worn Seal 2.11 Normal Wear on Seal (Age Related) N N N N Y Y N Turbine Minor Inspection 5yr 5yr 2.12 Mechanical Failure of Seal Keepers N N N N Y Y N Turbine Minor Inspection 5yr 5yr 2.2 102 & 201 Trunnion Seal 2.20 Worn Seal 2.21 Normal Wear on Seal (Age Related) N N N N Y Y N Turbine Minor Inspection 5yr 5yr 2.22 Mechanical Failure of Seal Keepers N N N N Y Y N Turbine Minor Inspection 5yr 5yr Mechanical Seal Worn Seal Normal Wear on Seal (Age Related) N N N N Y Y N Turbine Minor Inspection 5yr 5yr Flush Water Lines Plugged N N N N Y Y N Turbine Minor Inspection 5yr 5yr Mechanical Seal Worn Seal Normal Wear on Seal (Age Related) N N N N Y Y N Turbine Minor Inspection 5yr 5yr Flush Water Lines Plugged N N N N Y Y N Turbine Minor Inspection 5yr 5yr 3.1 102 & 202 Pitch Control Servo 3.10 Servo And Linkages Frozen in Position 3.11 Servo Cylinder Scored or Damaged and Frozen into Cylinder N N N N Y Y N Turbine Major Inspection 25yr 25yr 3.12 Linkage Or Bushing Bearings Broken or Severed or Frozen in Position N N N N Y Y N Turbine Minor Inspection 5yr 5yr 3.2 103 & 202 Pitch Control Servo 3.20 Servo And Linkages Out of Adjustment 3.21 Linkage Or Connecting Bushings Loose (Primary Control Electronic) N N N N Y Y N Turbine Minor Inspection 5yr 5yr Leaking Fittings and Servo N N N N Y Y N Turbine Minor Inspection 5yr 5yr X-A-01 (a,b) Functional Failure # Asset # Asset Description Failure Mode # Failure Mode Description Failure Cause # Failure Cause Description Question # Candidate task Effective Info Est Freq Comments 1 2 3 4 5 6 7 4.1 103 & 203 Runner Side Guide Bearing 4.10 Guide Bearing Wear 4.11 Normal Bearing Wear (Age Related) N N N N Y Y N Turbine Minor Inspection 10yr/Bearing Replacement 10yr Condition Based Replacement 4.12 Contaminated Lube Oil (Premature Wear) N N N N Y Y N Oil Tests/Turbine Minor Inspection 10yr 10yr Quarterly Oil Tests 4.13 Shaft Misalignment (Uneven Wear) N N N Y Y Y N Turbine Minor Inspection 10yr 10yr 4.2 104 & 203 Runner Side Guide Bearing 4.20 Guide Bearing Liner Failure 4.21 Contaminated Lube Oil (Premature Wear) Mechanical Seal Failure Water Contamination N N N Y Y Y N Oil Tests/Turbine Minor Inspection 10yr 10yr Quarterly Oil Tests 4.22 Shaft Misalignment (Uneven Wear) N N N Y Y Y N Turbine Minor Inspection 10yr 10yr 4.23 Excessive Radial Clearance N N N Y Y Y N Turbine Minor Inspection 10yr 10yr 5.1 104 & 204 Thrust Bearing 5.10 Thrust Bearing Liner Wear (Look Up) 5.11 Shaft Misalignment (Uneven Wear) N N N Y Y Y N Turbine Minor Inspection 10yr 10yr 5.2 104 & 204 Thrust Bearing 5.20 Thrust Bearing Liner Wear (Look Up) 5.21 Shaft Misalignment (Uneven Wear) N N N Y Y Y N Turbine Minor Inspection 10yr 10yr 5.3 104 & 204 Thrust Bearing 5.30 Thrust Bearing Liner Wear (Look Up) 5.31 Shaft Misalignment (Uneven Wear) N N N Y Y Y N Turbine Minor Inspection 10yr 10yr 5.32 Contaminated Lube Oil (Premature Wear) N N N N Y Y N Oil Tests/Turbine Minor Inspection 10yr 10yr Quarterly Oil Tests 5.33 Excessive Radial Clearance N N N N Y Y N Turbine Minor Inspection 10yr 10yr 6.1 105 & 205 Wicket Gates & Controls 6.10 Stiction In Gates and Controls 6.11 Wear In Bushings N N N N Y Y N Turbine Major Inspection 25yr 25yr 6.12 Foreign Object or Debris in Wickets N N N N Y Y N Turbine Minor Inspection 5yr 5yr 6.2 105 & 205 Wicket Gates & Controls 6.20 Frozen Or Broken Gates and Controls 6.21 Wear In Bushings N N N N Y Y N Turbine Major Inspection 25yr 25yr 6.22 Foreign Object or Debris in Wickets N N N N Y Y N Turbine Minor Inspection 5yr 5yr 7.1 106 & 206 Brake System 7.10 Worn Brake Shoes 7.11 Normal Wear on Linings (Age Related) N N N Y Y Y N Turbine Minor Inspection 5yr 5yr 7.2 106 & 206 Brake System 7.20 Failed Brake Mechanism 7.21 Excessive Stress on Brake Components Caused by Overspeed N N N N Y Y N Turbine Minor Inspection 5yr 5yr X-A-01 (a,b) Functional Failure # Asset # Asset Description Failure Mode # Failure Mode Description Failure Cause # Failure Cause Description Question # Candidate task Effective Info Est Freq Comments 1 2 3 4 5 6 7 8.1 107 & 207 Gearbox Speed Reducer 8.10 Gearbox Bearing or Gear Failure 8.11 Bearing Failure (Age Related) N N N N Y Y N Vibration Tests/Turbine Minor Inspection 10yr 10yr Quarterly Vibration Test 8.12 Bearing Failure (Lube Related) N N N N Y Y N Oil Tests/Turbine Minor Inspection 10yr 10yr Quarterly Oil Test 8.13 Gear Failure (Age Related) N N N N Y Y N Vibration Tests/Turbine Minor Inspection 10yr 10yr Quarterly Vibration Test 8.14 Gear Failure (Lube Related) N N N N Y Y N Oil Tests/Turbine Minor Inspection 10yr 10yr Quarterly Oil Test 8.15 Coupling Failure (Turbine /Gearbox) N N N N Y Y N Vibration Tests/Turbine Minor Inspection 10yr 10yr Quarterly Vibration Test 8.16 Coupling Failure (Gearbox Generator) N N N N Y Y N Vibration Tests/Turbine Minor Inspection 10yr 10yr Quarterly Vibration Test 8.17 Gearbox Seal Failure (Age Related) N N N N Y Y N Turbine Minor Inspection 10yr 10yr 9.1 108 & 208 Rotating Electric Generator 9.10 Generator Stator or Field Failure 9.11 Rotor Winding Resistance (Age Related) N N N N Y Y N Generator Electrical Inspection 5yr 5yr 9.12 Stator Winding Resistance (Age Related) N N N N Y Y N Generator Electrical Inspection 5yr 5yr 9.13 Stator Wedges or Bar Failures N N N N Y Y N Generator Electrical Inspection 12yr 12yr 9.14 End Winding Supports and Connections Failure N N N N Y Y N Generator Electrical Inspection 12yr 12yr 9.15 Air Cooling and Ventilation Failure N N N N Y Y N Generator Electrical Inspection 12yr 12yr 9.16 Upstream And Downstream Generator Bearing Failures N N N N Y Y N Generator Electrical Inspection 12yr 12yr 9.17 Diode Failure N N N N Y Y N Generator Electrical Inspection 5yr 5yr 10.1 109 & 209 Electronic Exciter #1 10.10 Electronic Failure 10.11 Electronic Failure N N N N Y Y N Switch Gear Clean & Test 3yr 11.1 109 & 209 Electronic Exciter #1 11.10 Electronic Failure 11.11 Electronic Failure N N N N Y Y N Switch Gear Clean & Test 3yr 12.1 110 & 210 HPU 12.10 No Control Hydraulic Oil Pressure or Flow 12.11 Electronic Failure N N N N Y Y N Switch Gear Clean & Test 3yr 13.1 111 & 211 Accumulator 13.10 Low Pressure in Bladder 13.11 Broken Bladder N N N N Y Y N Vessel Inspection 5yr 13.12 Low Nitrogen Charge N N N N Y Y N Vessel Inspection 5yr 14.1 111 & 211 Accumulator 14.10 Low Pressure in Bladder 14.11 Broken Bladder N N N N Y Y N Vessel Inspection 5yr 14.12 Low Nitrogen Charge N N N N Y Y N Vessel Inspection 5yr 15.1 112 & 212 Governor Oil Tank 15.10 Corroded Oil Tank That Leaks 15.11 Corrosion Due to Age N N N N Y Y N Vessel Inspection 5yr 15.2 112 & 212 Governor Oil Tank 15.20 Catastrophic Failure of Oil Tank Due to Overpressure 15.21 Cannot Be Overpressure N N N N N N N No PM Required X-A-01 (a,b) Functional Failure # Asset # Asset Description Failure Mode # Failure Mode Description Failure Cause # Failure Cause Description Question # Candidate task Effective Info Est Freq Comments 1 2 3 4 5 6 7 16.1 113 & 213 LP1&2 Controls Hydraulic Main Floor 16.10 Electronic Failure 16.11 Electronic Failure N N N N Y Y N Switch Gear Clean & Test 17.1 114 & 214 HPU Motor #1 17.10 No Control Hydraulic Oil Pressure or Flow 17.11 Motor Bearing Failure N N N N Y Y N Vibration Tests Quarterly 17.12 Electronic Failure N N N N N N N RTF 18.1 115 & 215 HPU Motor #2 18.10 No Control Hydraulic Oil Pressure or Flow 18.11 Motor Bearing Failure N N N N Y Y N Vibration Tests Quarterly 18.12 Electronic Failure N N N N N N N RTF 19.1 116 & 216 Accumulator Motor Fluid Trans 19.10 Overheated Lube & Hydraulic Oil 19.11 Motor Bearing Failure N N N N Y Y N Vibration Tests Quarterly 19.12 Electronic Failure N N N N N N N RTF An Alternative is That Small Electric Motors Could be Either Replaced or Rebuilt on a Time-Based Interval 20.1 117 & 217 Filtration Assembly 20.10 Contaminated Filter 20.12 Defective Filter N N N N N N N R&R Filter As Required Defective Filter Will Show Signs (Hi DP) at Start of Use, Replace Filter 20.2 117 & 217 Filtration Assembly 20.20 Plugged Filter 20.12 Plugged Filter (Age or Pressure Drop) Trip Off Turbine N N N N Y Y N R&R Filter As Required Establish Typical Time or Operating Hour Interval and Replace Filter on Routine Basis 21.1 118 & 218 Filtration System Motor 21.10 No Oil Pressure 21.11 Motor Bearing Failure N N N N Y Y N Vibration Tests Quarterly 21.12 Electronic Failure N N N N Y Y N RTF An Alternative is That Small Electric Motors Could be Either Replaced or Rebuilt on a Time-Based Interval 22.1 119 & 219 Lube Oil Motor 22.10 No Oil Pressure 22.11 Motor Bearing Failure N N N N Y Y N Vibration Tests Quarterly 22.12 Electronic Failure N N N N N N N RTF An Alternative is That Small Electric Motors Could be Either Replaced or Rebuilt on a Time-Based Interval 23.1 120 & 220 Lube Oil Pump 23.10 Pump Impeller Worn 23.11 Normal Wear (Age Related) N N N Y Y Y N Turbine Minor Inspection 5yr 5yr 23.2 120 & 220 Lube Oil Pump 23.20 Pump Relief Valve Improperly Set or Failed 23.21 Relief Valve Failure Components Frozen or Rusted in Position N N N Y Y Y N Turbine Minor Inspection 5yr 5yr 24.1 121 & 221 Heat Exchanger Cooling Fan Motor 24.10 Overheated Lube & Hydraulic Oil 24.11 Motor Bearing Failure N N N N Y Y N Vibration Tests Quarterly 24.12 Electronic Failure N N N N N N N RTF An Alternative is That Small Electric Motors Could be Either Replaced or Rebuilt on a Time-Based Interval 25.1 122 & 222 Heat Exchanger 25.10 Fouled Heat Exchanger 25.12 Build Up on Oil Side of Heat Exchanger or Debris on Air Side (Time Factor) N N N N N N N RTF 25.2 122 & 222 Heat Exchanger 25.20 Thermostat Failure 25.21 Buildup of Insulating Contaminant on Temperature Sensor (Mechanical) N N N N N N N RTF 25.3 122 & 222 Heat Exchanger 25.30 Heat Exchanger Tube Failure 25.31 Tube Rupture Due to Overheating & Corrosion N N N Y N N N RTF 26.1 123 & 223 Lube Oil Tank 1 & 2 26.10 Loss Of Integrity of Tank 26.12 Tank Failure Due to Corrosion N N N Y Y Y N Vessel Inspection 5yr X-A-01 (a,b) Functional Failure # Asset # Asset Description Failure Mode # Failure Mode Description Failure Cause # Failure Cause Description Question # Candidate task Effective Info Est Freq Comments 1 2 3 4 5 6 7 26.2 123 & 223 Lube Oil Tank 1 & 2 26.20 Loss Of Integrity of Tank 26.21 Tank Failure Due to Corrosion N N N Y Y Y N Vessel Inspection 5yr 27.1 Multi Electrical Switchgear 27.10 Electronic Failure 27.12 Electronic Failure N N N N Y Y N Switch Gear IR & Clean & Test 1-3yr IR Tests Annual, Clean & Test 3yr 28.1 134 Unit #1 &#2 HPU VFD 28.10 Electronic Failure 28.12 Electronic Failure N N N N Y Y N Switch Gear IR & Clean & Test 1-3yr 29.1 135 Unit #1 &#2 LOP VFD 29.10 Electronic Failure 29.12 Electronic Failure N N N N Y Y N Switch Gear IR & Clean & Test 1-3yr Intake And Discharge Equipment 32.1 300 Trash Rack 32.10 Holes In Trash Rack Allow Debris Through 32.11 Holes Caused by Mechanical Damage Removing Ice and Debris N N Y N Y Y N Visual External & NDT Of Flumes 5yr Coordinate Inspection to Coincide with FERC Part 12D 33.1 301 Trash Rack Cleaner 33.10 Failed Cleaner Mechanism 33.11 Physical Damage to Unit Ruin to Remove Ice and Debris N N Y N Y Y N Visual External & NDT Of Flumes 5yr Coordinate Inspection to Coincide with FERC Part 12D 34.1 302 Intake Flume 34.10 Failed Integrity of Flume 34.11 Flume Failure Cause by Corrosion and Erosion N N Y N Y Y N Visual External & NDT Of Flumes 5yr Coordinate Inspection to Coincide with FERC Part 12D 35.1 303 Draft Tube 35.10 Failed Integrity of Draft Tube 35.13 Draft Tube Failure Caused by Corrosion and Erosion N N Y N Y Y N Visual External & NDT Of Flumes 5yr Coordinate Inspection to Coincide with FERC Part 12D Electrical 36.1 304 Backup Generator 36.10 Failed Generator 36.11 Engine Will Not Start Due to Fuel Issues Y Y Y N Y Y N Backup Generator Maintenance 1yr Yearly Maintenance + Routine Starts 36.12 Engine Will Not Start Due to Battery and Starter Issues Y Y Y N Y Y N Backup Generator Maintenance 1yr Yearly Maintenance + Routine Starts 36.13 Engine Will Not Start Due to Ignition Issues Y Y Y N Y Y N Backup Generator Maintenance 1yr Yearly Maintenance + Routine Starts 36.14 Engine Starts but Fails to Generate Power Due to Electrical Issues Y Y Y N Y Y N Backup Generator Maintenance 1yr Yearly Maintenance + Routine Starts 37.1 305 Breaker De-Watering Use 37.10 Electronic Failure 37.11 Electronic Failure N N N N Y Y N Switch Gear Ir & Clean & Test 1-3yr 38.1 306 Battery Storage System 38.10 Batteries Discharged; No Power Available 38.11 Batteries Failed Y Y N Y Y Y N Battery Station Maintenance 1yr 38.12 Charger Failed Due to Electronic Issues N N N Y Y Y N Battery Station Maintenance 1yr 39.1 307 Sump Starter/Control 39.10 Electronic Failure 39.11 Electronic Failure N N N N Y Y N Switch Gear Ir & Clean & Test 1-3yr 40.1 308 Starter/Relays-Sump Pumps 40.10 Electronic Failure 40.11 Electronic Failure N N N N Y Y N Switch Gear Ir & Clean & Test 1-3yr 41.1 309 Trolley & Hoist Controls/Disconnect 41.10 Electronic Failure 41.11 Electronic Failure N N N N Y Y N Switch Gear IR & Clean & Test 1-3yr 42.1 Multi Common Power Elec Tx Equip 42.10 Electronic Failure 42.11 Electronic Failure N N N N Y Y N Switch Gear Ir & Clean & Test 1-3yr Sump Pumps and Compressors 43.1 Multi Submersible Sump Pump 43.10 Pump Failure 43.11 Bearing Failure N N N N Y Y N Vibration Tests Quarterly X-A-01 (a,b) Functional Failure # Asset # Asset Description Failure Mode # Failure Mode Description Failure Cause # Failure Cause Description Question # Candidate task Effective Info Est Freq Comments 1 2 3 4 5 6 7 44.1 326 Emergency B/U Pump 44.10 Pump Failure 44.11 Bearing Failure N N N N Y Y N Vibration Tests Quarterly 45.1 234 Emergency B/U Pump Motor 45.10 Electronic Failure 45.11 Electronic Failure N N N N Y Y N Switch Gear & Clean & Test 1-3yr HVAC 46.1 Multi Starter Exhaust Fan VFD 46.10 Electronic Failure 46.11 Electronic Failure Run To Failure Q1 Is the age reliability relationship for this failure known? Q2 Are there any applicable time dependent (TD) tasks? Q3 Are there any applicable condition dependent (CD) tasks? Q4 Is this a category "D" failure mode? Q5 Are there any applicable failure finding (FF) tasks? Q6 Are any of these tasks effective? Q7 Can a design mod eliminate the failure mode or effects? X-A-01 (a,b) Table A-6 Preliminary Maintenance Recommendation Inspection Title Equipment Scope of Work Frequency Cost Estimate ($ Per Turbine) Dewater4 Turbine Minor Inspection 5yr Kaplan Runner Guide and Thrust Bearings, Wicket Gates Hydraulics, Gearbox Minor Inspection, Visual Internal of Runner, Wicket Gates, Wicket and Blade Tip Clearances Checked, Checked Seals Replaced, Stroke Wicket Gates and Kaplan Blades, Check Oil for Water, Tear Down, Inspect and Repair the Lube Oil Pump & Relief Valve, Brake System Inspection, Seal Bladder Check, Inflatable Seal Bladder Check Before and After Dewatering 5 years 75,000 - 125,000 Yes Turbine Minor Inspection 10yr Kaplan Runner Guide and Thrust Bearings, Wicket Gates Hydraulics, Gearbox Minor Inspection, Visual Internal of Runner, Wicket Gates, Bearing Covers Removed Liner Inspected Alignment and Clearances Checked, Gearbox Cover Removed Clearances Checked Seals Replaced 10 years 125,000 - 250,000 Yes Turbine Major Inspection 25yr Kaplan Runner Guide and Thrust Bearings, Wicket Gates Hydraulics, Gearbox Major Inspection, Complete Turbine Rebuilds, Bearing Replacement, Alignment, Kaplan & Wicket Gate Servo Rebuild, Gearbox Rebuild 25 years 500,000 -1,000,000 Yes Vibration Testing Kaplan Runner Guide and Thrust Bearings, Wicket Gates Hydraulics, Gearbox Vibration Analysis Quarterly 3,000 - 5,000 No Oil Testing Kaplan Runner Guide and Thrust Bearings, Wicket Gates Hydraulics, Gearbox Oil Analysis Quarterly - No Generator Electrical Inspection 5yr Generator & Exciter Field & Stator Test The Insulation Resistance, Winding Resistance, Polarization Index the Exciter Stator, Exciter Rotor, Generator Stator and Rotor, Operating Voltage Hi-Pot and Surge Comparison Test the Stator Winding, Ac Volt Drop Test the Rotor Coils, Test the Rotating Diode Assembly and Inspect All Winding and Generator Components for Wear and Deficiencies. 2-5 years 5,000 - 7,000 No Generator Electrical Inspection 12yr Generator & Exciter Field & Stator, Bearings, Air Cooler Minor Inspection, Dry Ice Clean Generator Windings, Inspect All Wedges And Winding Components, Test The Insulation Resistance, Winding Resistance, Polarization Index The Exciter Stator, Exciter Rotor, Generator Stator and Rotor, Operating Voltage Hi-Pot And Surge Comparison Test The Stator Winding, Ac Volt Drop Test the Rotor Coils, Test the Rotating Diode Assembly And Inspect all Winding and Generator Components for Wear and Deficiencies, Check Laser Alignment to Gear Box and Bearing Inspection. 12 years 25,000 - 35,000 No Generator Rewind Generator & Exciter Field & Stator, Bearings, Air Cooler Generator & Excitor Rewind, Bearing Liner Replacement 25 ye25 yearsars25 200,000 - 300,000 No Switchgear IR Switchgear Infrared Scans Annual 3,000 - 5,000 No Switch Gear Clean & Test Switch Gear Trip & Relay Tests, Cleaning & Re-Certification 3 years or As Per Jurisdiction 30,000 - 45,000 No Visual External & NDT Of Vessels Oil Tanks, Accumulators Visual External or Internal Inspection NDT, Inspect and Recharge Bladder as Required 5 years 3,000 - 5,000 No Battery Station Maintenance Battery Station, Charger, Batteries & Switches Visual Inspection, Cleaning and Maintenance of Batteries, Load Tests, Hydrometer Test, Charging System and Switch Functionality Test 1 year 3,000 - 5,000 No 25 years X-A-01 (a,b) Inspection Title Equipment Scope of Work Frequency Cost Estimate ($ Per Turbine) Dewater4 Backup Generator Maintenance Backup Generator Engine, Generator, Controls and Switches Service, Inspection, and Maintenance of Backup Generator as per Manufacturers Recommendations 1 year 3,000 - 5,000 No Visual External & NDT of Flumes Intake Flume, Draft Tube and Chest, Trash Rack Visual External or Internal Inspection NDT 5 years 5,000 - 10,000, Cost could be shared with FERC Part 12D Inspection Yes, divers or submersible may be required 1)Due to dewatering expenses and logistics, both units are taken down sequentially the same year.2)Oil analysis currently is done by the plant.3)Assume that daily & weekly oiling and machine checks that are recommended by the OEM are performed by operations.4)Dewater costs estimated to be $200,000 for both turbines and should be added to the inspection cost, as appropriate.5)Minor inspection PM frequency set to match FERC Part 12D Inspection Requirement.6)Vessel inspection cost per vessel. X-A-01 (a,b) Appendix B Figures X-A-01 (a,b) X-A-01 (a,b) Appendix C Present Value Calculations for Operating and Maintenance Costs X-A-01 (a,b) Appendix C Present Value Calculations for Operating and Maintenance Costs Item Factor Total (approximate) Average Annual Revenue 716,500$ P/A 14.0939 Revenue Present Worth (P)10,098,000$ Operating Costs (by City of Hastings) 450,000$ P/A 14.0939 Operations Present Worth (P)6,342,000$ Battery Station Maintenance 5,000$ Backup Generator Maintenance 5,000$ Vibration Testing 20,000$ Oil Testing 5,000$ Miscellaneous 25,000$ Total Annual Maintenace 60,000$ P/A 14.0939 Annual Maintenance Present Worth (P)846,000$ Switch Gear Clean & Test 45,000$ (P/F) n=3 0.8638 38,871$ (P/F) n=6 0.7462 33,579$ (P/F) n=9 0.6446 29,007$ (P/F) n=12 0.5568 25,056$ (P/F) n=15 0.481 21,645$ (P/F) n=18 0.4155 18,698$ (P/F) n=21 0.3589 16,151$ (P/F) n=24 0.3101 13,955$ 3-year Maintenance Present Worth (P)197,000$ Turbine Minor Inspection 5yr 125,000$ Turbine Minor Inspection 5yr 125,000$ Generator Electrical Inspection 5yr 7,000$ Generator Electrical Inspection 5yr 7,000$ Dewater 450,000$ Total Cost Per 5yr 714,000$ (P/F) n=5 0.7835 559,419$ (P/F) n=15 0.481 343,434$ 5-year Maintenance Present Worth (P)903,000$ Turbine Minor Inspection 10yr 250,000$ Turbine Minor Inspection 10yr 250,000$ Generator Electrical Inspection 10yr 35,000$ Generator Electrical Inspection 10yr 35,000$ Dewater 450,000$ Revenue Operating Costs Annual Maintenance Expenses 3 Year Maintenance Expenses 5 Year Maintenance Expenses 10 Year Maintenance Expenses 1 of 2 X-A-01 (a,b) Appendix C Present Value Calculations for Operating and Maintenance Costs Item Factor Total (approximate) Total Cost Per 10yr 1,020,000$ (P/F) n=10 0.6139 626,178$ (P/F) n=20 0.3769 384,438$ 10-year Maintenance Present Worth (P)1,011,000.00$ Turbine Major Inspection 25yr 1,000,000$ Turbine Major Inspection 25yr 1,000,000$ Generator Rewind 300,000$ Generator Rewind 300,000$ Dewater 450,000$ Total Cost Per 25yr 3,050,000$ (P/F) n=0 1 3,050,000$ 25-year Maintenance Present Worth (P)3,050,000$ 12,349,000$ 10,098,000$ (2,251,000)$ 122% 25 Year Maintenance Expenses Total Present Worth of O&M Costs Net Cash (Revenue - O&M costs) O&M % of Revenue Total Revenue 2 of 2 X-A-01 (a,b) City Council Memorandum To:Mayor Fasbender & City Councilmembers From:John Hinzman, Community Development Director Date:January 5, 2026 Item:Resolution: Authorize Submittal of 2026 CDBG Budget Council Action Requested: Adopt the attached resolution authorizing submittal of the 2026 Community Development Block Grant (CDBG) budget to Dakota County. The estimated funding of $43,993 would be allocated towards assessment abatement. Action requires a simple majority of Council. Background Information: CDBG funding is intended to fund activities for low and low\moderate income individuals including affordable housing, anti-poverty, and infrastructure development. Dakota County receives a direct allocation of CDBG funding from the US Department of Housing and Urban Development (HUD) and sub- allocates funding to individual cities within the County. Assessment Abatement: Similar to past years, CDBG funding would be allocated toward providing assessment abatement for local public infrastructure projects; allowing qualifying homeowners to reduce or eliminate their assessment. The adjacent map indicates the project area. This year’s project includes street reconstruction and utilities on Pleasant Drive from TH-55 to 4th Street and 4th Street from Pleasant Drive to River Street.A new trail is proposed to replace the existing sidewalk along the west side of Pleasant Drive. Pending the type of properties requesting assistance, 7-12 could be assisted.Qualifying low-income households would have 100 percent of their assessments abated, while qualifying moderate income households would have their assessments abated to the extent of remaining funds available. Financial Impact: CDBG funds will assist low to low\moderate income households in abating assessments and housing repairs. Advisory Commission Discussion: N\A X-C-01 Council Commission Discussion: N\A Attachments: •Resolution •CDBG Application X-C-01 CITY OF HASTINGS DAKOTA COUNTY, MINNESOTA RESOLUTION NO. ___________ A RESOLUTION APPROVING THE APPLICATION FOR FISCAL YEAR 2026 DAKOTA COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT FUNDING WHEREAS, the City of Hastings is a participating jurisdiction with the Dakota County Community Development Block Grant (CDBG)Entitlement Program for Fiscal Year 2026 (starting July 1, 2026 and ending June 30, 2027); and WHEREAS, the Dakota County Community Development Agency (CDA) is a Subgrantee of Dakota County for the administration of the CDBG Program; and WHEREAS, the Dakota County CDA has requested Fiscal Year 2025 CDBG applications be submitted by January 16, 2026, based on an allocation of funds approved in the Annual Action Plan. NOW, THEREFORE, BE IT RESOLVED that the City of Hastings hereby approves the following: 1.The Fiscal Year 2026 CDBG application is approved for submission to the Dakota County CDA. 2.The City Administrator for the City of Hastings is authorized to execute the application and all agreements and documents related to receiving and using the awarded CDBG funds. 3.The Dakota County CDA is designated as the administrative entity to carry out the CDBG program on behalf of the City of Hastings, subject to future Subrecipient Agreements that may be required for specific CDBG-funded activities. Adopted by the City Council of Hastings this 5th day of January, 2026 ATTEST: Mary D. Fasbender, Mayor Kelly Murtaugh, City Clerk X-C-01 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 January, 2026, as disclosed by the records of the City of Hastings on file and of record in the office. Kelly Murtaugh City Clerk ( SEAL) This instrument drafted by: City of Hastings (JH) 101 4th Street East Hastings, MN 55033 X-C-01 COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS APPLICATION FOR PROGRAM YEAR 2026 Application must be received by the Dakota County Community Development Agency NO LATER THAN FRIDAY, JANUARY 16, 2026 For July 1, 2026 –June 30, 2027 General Information Applicant Name:City of Hastings UEI #:172843278 Contact Name:John Hinzman Applicant Address:101 East 4th Street City, State, Zip:Hastings, MN 55033 Phone:651-480-2378 Email:jhinzman@hastingsmn.gov Proposed Activities Activity Requested Funding Amount #1 Title:Assessment Abatement CDBG Request:$ 43,993 #2 Title:Click or tap here to enter text.CDBG Request:$ Click or tap here to enter text. #3 Title:Click or tap here to enter text.CDBG Request:$ Click or tap here to enter text. #4 Title:Click or tap here to enter text.CDBG Request:$ Click or tap here to enter text. #5 Title:Click or tap here to enter text.CDBG Request:$ Click or tap here to enter text. Total Request:$ 43,993 Contingency Funding Request: Note the funding levels for activities if there is an increase or decrease in federal funding levels. Specify which activities should be fully funded at the requested level and which should be increased or decreased. Please make any adjustments to Assessment Abatement PLEASE NOTE: AT LEAST 50%of the proposed funding must qualify as a LOW/MOD benefit.NO MORE THAN 35% of the any one community’s proposed funding can be for PUBLIC SERVICES.Because public services may not account for more than 15% of the County’s total funding, public service requests may be decreased once all applications are submitted and reviewed by CDA staff.NO MORE than 10% of any one community’s funding can be used for PLANNING. X-C-01 Certification I certify that the information contained in this application is true and correct and that it contains no misrepresentations, falsifications, intentional omissions, or concealment of material facts. I further certify that no contracts have been awarded, funds committed, or construction begun on the proposed project(s), and that none will be made prior to notification from the Dakota County CDA based on HUD’s issuance of a Release of Funds Notice. Signature of Authorized Official Date Title of Authorized Official PLEASE ATTACH THE RESOLUTION OF THE GOVERNING BODY SHOWING APPROVAL OF THE REQUEST FOR CDBG FUNDS. X-C-01 1 Please complete the following Sections I-V for EACH proposed activity. (For example, if 3 activities are being proposed, there will be 3 sets of the following pages.) Activity # 1 Activity Title:Assessment Abatement II. Activity Information Has this Activity received CDBG funding before? ☒Yes ☐No Check the eligible activity category of the proposed activity:(See attached definitions) I. Activity Title Describe the proposed activity in detail. Please be specific about purpose, location, number of people or households served, etc. The City of Hastings 2026 Improvement Program includes street reconstruction and utilities on Pleasant Drive from TH-55 to 4th Street and 4th Street from Pleasant Drive to River Street.A new trail is proposed to replace the existing sidewalk along the west side of Pleasant Drive. The City is proposing to allocate CDBG funding to provide assessment abatement to low-and moderate- income properties. Pending the type of properties requesting assistance, 7-12 could be assisted.Qualifying low-income households would have 100 percent of their assessments abated, while qualifying moderate income households would have their assessments abated to the extent of remaining funds available. X-C-01 2 Affordable Rental Housing ☐Rehabilitation of Multi-Unit Residential ☐Fair Housing Activities ☐Energy Efficiency Improvements Public Services ☐Senior Services ☐Youth Services ☐Transportation Services ☐Operational Support Affordable Homeowner Housing ☐Homeownership Assistance ☐New (Re)Construction Homeowner Housing ☐Rehabilitation/ Energy Efficiency Improvement of Single Unit Residential ☐Fair Housing Activities Public Facilities ☐Recreational Parks ☐Public Water/Sewer Improvements ☐Street Improvements ☐Sidewalks ☒Assessment Abatement ☐ADA Improvements Homelessness ☐Coordinated Access to Services & Shelter ☐Housing Stabilization ☐Emergency Shelter Operation Neighborhood Revitalization ☐Acquisition of Real Property ☐Clearance and Demolition ☐Clean-up of Contaminated Site Economic Development ☐Employment Training ☐Economic Development Assistance ☐Rehabilitation of Commercial/Industrial Buildings ☐Micro-Enterprise Assistance ☐Relocation Planning and Administration ☐Planning ☐Administration X-C-01 3 Describe the activity schedule: Is this a continuation of a previously funded activity? ☐Yes ☒No Is this a time-specific project?☒Yes ☐No If this is a time-specific project, please note the start and end dates below: Proposed Activity Start Date: 7/1/26 Proposed Activity Completion Date: 6/30/27 CDBG funded projects/activities must meet one of the following program objectives. Check the objective for which the CDBG funds will be used. If you checked the Low/Mod Housing Benefit box, please answer the following: How many Low/Mod Households will benefit?7-12 Households (Income eligibility must be verified by written documentation) Where will this activity occur? (Address of property, neighborhood, or citywide) Pleasant Drive from TH-55 to 4th Street and 4th Street from Pleasant Drive to River Street. Click or tap here to enter text. III. CDBG National Objective ☐Low/Mod Area Benefit ☐Low/Mod Limited Clientele Benefit ☒Low/Mod Housing Benefit ☐Low/Mod Jobs Benefit ☐Slum/Blight Area Benefit ☐Slum/Blight Spot Benefit ☐Urgent Need (extremely rare; used only for emergencies):(Please explain)Click or tap here to enter text. If you checked the Low/Mod Area Benefit box, please answer the following: In what Census Tract/Block Group(s) do beneficiaries of your Activity live? (Please include map) Click or tap here to enter text. How many residents live in this area? Click or tap here to enter text. What is the percentage of low and moderate-income beneficiaries? Click or tap here to enter text.% How was this documented? ☐HUD Data ☐Survey (Please include a copy of survey) X-C-01 4 If you checked the Low/Mod Limited Clientele Benefit box, please answer the following: How many Low/Mod People or Households will benefit? Click or tap here to enter text.People Click or tap here to enter text.Households (Please choose either People or Households for each project). How will income be verified? ☐Income Verification Request Forms ☐Eligibility Status for other Governmental Assistance program ☐Self Certification (Must request source documentation of 20% of certifications and must inform beneficiary that all sources of income and assets must be included when calculating annual income) ☐Presumed benefit (HUD presumes the following to be low and moderate-income: abused children, battered spouses, elderly persons (62+), severely disabled persons, homeless persons, persons living with AIDS, migrant farm workers) If you checked the Low/Mod Jobs Benefit box, please answer the following: To meet the requirements of the “Jobs” National Objective, the business being assisted must enter into an agreement showing commitment that at least 51% of jobs created or retained will be available to low/mod income persons. The business must also be prepared to provide a list of all jobs, detailed information about the jobs being created or retained, the selection and hiring process, and demographic information about the employees. Will this activity create or retain full time equivalencies (FTEs)? ☐Create ☐Retain For job(s) that are being retained, please provide evidence that the assisted business has issued a notice to affected employees or that the business has made a public announcement to that effect, OR an analysis of relevant financial records that shows the business is likely to cut back on employment in the near future without planned intervention. Will the job(s) created or retained require a special skill? ☐Yes ☐No What percent of permanent FTEs will be held by or available to low/mod income persons? Click or tap here to enter text.% If you checked the Slum/Blight Area or Slum/Blight Spot Benefit box, please answer the following: What are the boundaries of the slum/blight area or the address of the slum/blight spot? Click or tap here to enter text. (Please provide letter from building inspector or other documentation noting deficiencies and include photos) What deficiency will be corrected or the public improvement be? Click or tap here to enter text. If Slum/Blight Area, what percent of buildings are deteriorated? Click or tap here to enter text.% X-C-01 5 IV. Proposed Objectives and Outcomes Indicate the proposed objective and outcome of the activity/project. Outcome #1 Availability/Accessibility Outcome #2 Affordability Outcome #3 Sustainability Objective #1 Suitable Living Environment ☐Accessibility for the purpose of creating a suitable living environment ☐Affordability for the purpose of creating a suitable living environment ☐Sustainability for the purpose of creating a suitable living environment Objective #2 Decent Housing ☐Accessibility for the purpose of providing decent housing ☐Affordability for the purpose of providing decent housing ☐Sustainability for the purpose of providing decent housing Objective #3 Economic Opportunity ☐Accessibility for the purpose of creating economic opportunities ☐Affordability for the purpose of creating economic opportunities ☐Sustainability for the purpose of creating economic opportunities Indicate how the activity outcome will be measured and projected number of beneficiaries. ☐People ☒Households 7-12 ☐Housing Units ☐Public Facilities ☐Jobs ☐Businesses ☐Organizations V. Project Budget Provide the total project cost and CDBG request. Total Project Cost: $ 4,525,000 Total CDBG Request: $ 43,993 CDBG Percent of Total Cost: 0.1% Describe all funding sources. Source of Funds Amount Committed Pending City of Hastings Wastewater Fund $ 400,000 ☒☐ City of Hastings Water fund $ 775,000 ☒☐ City of Hastings Storm Sewer Fund $ 725,000 ☒☐ City of Hastings Bonded Debt $2,625,000 ☒☐ Total Costs:$ 4,525,000 ☐☐ Property Owner Assessments $ 679,500 ☐☒ X-C-01 6 CDBG Funds $ 43,993 ☐☒ Please itemize project expenses,using the following guidance as applicable: •Acquisition & Improvement Costs -Include purchase price, closing costs, site improvements, clearance of toxic contaminants, and other acquisition and improvement costs •Construction/Rehabilitation Costs -Include site improvements, construction (labor, materials, supplies), installation, permits and other construction/rehabilitation costs •Professional Fees and Personnel Costs -Include architectural, engineering and code inspection fees, surveys, appraisals, legal fees, hazardous materials surveys, project management, and other professional/personnel fees •Other Development Costs -Include relocation, financing costs, environmental reviews, environmental studies, and other development costs •Eligible Costs for Planning Projects -Include professional services, project management costs, and other planning costs Itemized Use of Funds/Expenses Costs CDBG Funds Requested Other Funding Sources Street Storm Sewer, Streetscape –City of Hastings Bonded Debt & Special Assessments $ 2,625,000 $ 43,993 $2,581,007 Water System Infrastructure Replacement –City of Hastings Water Fund $ 775,000 $ 0 $ 775,000 Sanitary Sewer Infrastructure –City of Hastings Wastewater Fund $ 400,000 $ 0 $ 400,000 Storm Sewer Infrastructure –City of Hastings Storms Sewer Fund $ 725,000 $ 0 $ 725,000 Total:$4,525,000 $ 43,993 $ 4,481,007 * * * * * Please review each section for completeness. Each activity should have separate Sections I through V. X-C-01 7 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) ELIGIBLE ACTIVITIES Please Note: Although an activity may be deemed eligible for CDBG funding, it does not guarantee funding. The Community Development Needs for the CDBG Program in the Consolidated Plan lists the priority of needs and dictates which types of eligible activities may be funded in a given year. All activities must meet a National Objective. CDBG funds may NOT be used for costs attributable to a building used for the general conduct of government, general government expenses,or political activities. Acquisition/Disposition: Includes acquisition of real property, in whole or in part, by purchase, long-term lease, donation, or otherwise for any public purpose. Real property to be acquired may include land, air rights, easements, water rights, rights-of-way, buildings and other property improvements, or other interests in real property. Demolition/Clearance: Includes clearance, demolition, and removal of buildings and improvements including movement of structures to other sites. Economic Development Activities: Includes but are not limited to: (1) construction by the grantee or subrecipient of a business incubator designed to provide inexpensive space and assistance to new firms to help them become viable businesses, (2) loans to pay for the expansion of a factory or commercial business, and (3) training for by persons on welfare to enable them to qualify for jobs created by CDBG-assisted special economic development activities. The level of public benefit to be derived from the economic development activity must be appropriate given the amount of CDBG assistance. Homeownership Assistance:Includes financial assistance for down payments, closing costs or other part of the purchase process and counseling for pre-purchase, post-purchase or foreclosure prevention. Rehabilitation: Includes single-family rehabilitation, multi-family rehabilitation, energy efficiency improvements, public housing modernization, and rehabilitation of commercial properties. Relocation: Includes relocation payments and assistance to displaced persons, including individuals, families, businesses, non-profits, and farms, where required under section 570.606 of the regulations (pursuant to the Uniform Relocation Act). Public Facilities/Improvements: CDBG funds may be used by the subrecipient or other public or private nonprofit entities for the acquisition (including long term leases for periods of 15 years or more), construction, reconstruction, rehabilitation (including removal of architectural barriers to accessibility), or installation, of public improvements or facilities. This includes neighborhood facilities, firehouses, public schools, libraries, and shelters for homeless people, as well as water and/or sewer treatment plants. Buildings for the general conduct of government cannot be acquired or improved with CDBG funds. Public Services: CDBG funds may be used to provide public services (including labor, supplies, and materials), provided that each of the following criteria is met: 1) The public service must be either a new service or a quantifiable increase in the level of service; and 2) The amount of CDBG funds obligated within a program year to support public service activities may not exceed 35% of a city’s allocation and the total public services of all subrecipients may not exceed 15% of the total grant awarded to Dakota County for that year. Planning:Includes studies, analysis, data gathering, preparation of plans, and identification of actions that will implement plans. The types of plans which may be paid for with CDBG funds include but are not limited to comprehensive plans,individual project plans, community development plans, capital improvement programs, small area and neighborhood plans,environmental and historic preservation studies,and functional plans (such as plans for housing, land use, energy conservation, or economic development). Except for small cities and townships, the amount of CDBG funds obligated within a program year to support planning activities may not exceed 15% of a community’s allocation. General Grant Administration: CDBG funds may be used for general administration costs incurred by a subrecipient to administer its CDBG program. CDBG grant funds obligated to general grant administration may not exceed 10% of the community’s allocation. Administration costs directly associated with a CDBG activity should be part of the activity as project administration and are not considered general grant administration expenses. Please talk to the Dakota County CDA before you allocate funds to grant admin. Planning and General Grant Administration Activities may not exceed 20% of the total grant awarded to Dakota County for that year. X-C-01 City Council Memorandum To:Mayor Fasbender & City Councilmembers From:City Administrator Dan Wietecha Date:January 5, 2026 Item:PFAS Update Council Action Requested: Informational memo, no action requested at this time. Key Updates •Environmental investigations continue as planned by the MPCA to determine potential connection and eligibility for the City’s other wells. The current round of studies are expected to complete in late 2025. The City and MPCA are meeting in late January 2026 to review the studies. •The 2026 budget proposal includes a phased approach of 10% each in January and July 2026 and January 2027. The phased approach would allow additional time to seek state bonding, grants, and/or direct connection to 3M Cottage Grove; enable phasing in the necessary rate increase; and recognizes the complexity of loan and grant paperwork with the Public Facilities Authority.On December 15, 2025, the City Council approved the initial 10% increase effective January 1, 2026. •Due to concerns at an adjacent property in mid November, vibration monitoring equipment was installed at the construction site to ensure that vibrations won’t damage neighboring properties. We also have forensic engineers inspecting cracks in the foundation next door –alleged to have been caused before we put up the vibration monitors. 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 #9 site, scheduled to come on line in 2026. 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 contaminated well. X-E-01 In December 2023, the City received a $3.2M Planning and Design Grant from the MPCA to cover the expenses of designing the three WTP’s. The City contracted with WSB for the design work. In October 2025, the grant was increased by $281K. The general plan is to build one WTP per year for three years. The central WTP was bid in June- July 2025, had contracts approved in August, began construction in late September 2025, and have substantial completion in December 2026. Under current plans, the eastern WTP would bid in 2026, and substantial completion in 2027. Finally, the western WTP would bid 2027, and substantial completion in 2028-2029. These dates are approximate, but the point is that one WTP per year leaves very little room for compliance with the current EPA deadline of April 2029; though, the EPA has indicated its intent to extend the deadline two years. The current construction cost estimate is $70.3M, plus upwards of $1M annually for operation and maintenance. Without any 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 approximately $23.3M assistance secured to date, water rates would still increase around 150% between 2024 and 2028. Updates Environmental Protection Agency: In March 2023, the EPA announced draft maximum contaminant levels for PFOA and PFOS. The final MCL’s were released April 10, 2024, at 4 parts per trillion for both PFOA and PFOS. This included five of the City’s six wells and the Hastings Veterans Home being over the new MCL’s. According to the EPA, “Systems that detect PFAS above the new standards will have five years to implement solutions that reduce PFAS in their drinking water.” On May 14, 2025, the EPA issued a press release indicating that it was keeping the MCL’s for PFOA and PFOS at 4 ppt and extending the compliance deadline by two years. The actual details are pending a proposed rule in fall 2025 which would be finalized in spring 2026. The most notable news for Hastings is that it would extend the compliance deadline by two years from April 2029 to 2031. This could allow us to delay portions of our project in order to pursue additional funding and/or to phase in water rate increases over six years rather than four. There are also reasons to maintain our existing construction schedule. Most importantly, our residents will continue to have contaminated water until all three WTPs are built and operational. Additionally, our current schedule would be completed only four to six months ahead of the original deadline. This is little cushion for any potential delays due to bidding, contractor, supply chain, weather, etc. So the extension could simply give us cushion to manage a large and X-E-01 complex project. And we have been trying to work ahead of other cities; more time could result in more competition for grants and funding. Additionally, deliberate delay would likely mean higher costs for inflation. The EPA announcement also mentioned plans to rescind and reconsider regulations for four specific PFAS. This would not impact Hastings, as the limits for PFOA and PFOS remain at 4 ppt. September 11, 2025, the EPA reconfirmed its regulation of PFOA and PFOS. State Capital Budget –2024: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. The House Capital Investment Committee included Hastings in its tour on November 30, 2023. Sen. Seeberger and Rep. Hudella indicated support and introduced SF 3161 and HF 3115. The House Capital Investment Committee held a hearing on HF 3115 on April 15, 2024. The legislative session ended May 20, 2024, without passage of a bonding bill. State Capital Budget –2025: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 was 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 were able to reduce the amount of this bonding request to $16.6M for the eastern WTP. Late in the legislative session, we updated our project and financial information with Minnesota Management and Budget (MMB) to reflect matching expenditures by the City and potentially separating the Veterans Home interconnection from the financial calculation. 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, 2025, 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 Pappas (Chair of Senate Capital Investment Committee) and Seeberger, and staff to X-E-01 review water rates, grants, East Metro 3M Settlement funds, financial aspects, and construction schedule of our project. On May 9, we met again with Representative Franson (Co-Chair of House Capital Investment Committee) and Representative Dippel. During special session, the legislature adopted a state budget and bonding bill that focused on state projects. State Capital Budget –2026:In June, we submitted two applications to keep our options open for consideration in the 2026 session: the eastern and western WTPs. In August-September, we met with Sen. Seeberger and with Rep. Dippel to discuss the status of our project, impact on water rates, and options to pursue legislative assistance. It is vitally important to have support from both of our legislators and that they work together. The Senate Capital Investment Committee included Hastings on its State Bonding Tour on October 28, 2025. A similar visit by the House Capital Investment Committee occurred November 6. Both were engaged and well received. Clean and safe drinking water was again identified as the City Council’s number one legislative priority during its workshop on November 3, 2025. 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 2025, 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.Sen. Klobuchar has submitted our project to the Senate Appropriations Committee for consideration for Congressionally Directed Spending. Please note that the Congressional offices coordinate in order to submit as many Minnesota projects as possible, so we do have support of Senator Smith and Congresswoman Craig even though submitted by one office. In late August, the draft legislation reported by the House Appropriations Committee includes $1.1M for the project. This is one step in the process and does not guarantee funding. 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. In May 2025, we submitted the western WTP for the IUP. X-E-01 PPL –2025:The Public Facilities Authority has listed the eastern WTP as 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). During our April 7, 2025,workshop, the City Council discussed utilizing the Drinking Water Revolving Fund for the balance (estimated at $5M to $8M) of the central WTP. Application for the PFA loan was approved by City Council on May 5; the application was submitted May 22. The new state budget included some state funds to augment the ECG program, but the budget language is different and doesn’t have the same formula limit as the federal funds. The PFA financing for the central WTP was updated to reflect $3M federal-funded Emerging Contaminants Grant, $2M state-funded Emerging Contaminants Grant, and $5M low-interest loan (reduced from previously planned $8.4M). Using the low-interest DWRF will save about $600K in interest over the next 20 years. The financing agreement was approved August 18, 2025. We inquired of the PFA and confirmed that we do not meet income eligibility criteria to have all or a portion of the loan converted to a grant. The eastern WTP has also been identified as fundable with the federal funds, and we recently applied for the western WTP. In August we were told that the state funds will likely be available for the eastern WTP in 2026. PPL –2026:Additionally, in spring 2025, we submitted updates for the IUP applications for the eastern and western WTPs to match construction schedule; this also includes an application for the Emerging Contaminants Grant toward the western WTP. Draft rankings were released in November. The eastern WTP is ranked #1, and the western WTP is tied at #17. Both are reportedly in the fundable range. Water Rates –2025: 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 approximately $23.3M assistance secured to date, water rates would still increase around 150% between 2024 and 2028. X-E-01 The City Council had workshop April 7, 2025,to discuss financing the City’s portion of the central WTP. On May 5, the City Council approved an additional 10% water rate increase effective July 1. This covered our projected gap as well as provided some cushion for uncertainty. The increases were communicated to our residents and businesses through mailings, newsletters, and social media. Water Rates –2026: Early budget planning estimated a 37.2% water rate increase for 2026. This can be reduced due to the federal and state Emerging Contaminants Grants for the central WTP, construction bids for the central WTP, and holding the construction schedule for the eastern WTP until summer 2026. The budget proposal includes a phased approach of 10% each in January and July 2026 and January 2027. The phased approach would allow additional time to seek state bonding, grants, and/or direct connection to 3M Cottage Grove; enable phasing in the necessary rate increase; and recognizes the complexity of loan and grant paperwork with the Public Facilities Authority.On December 15, 2025, the City Council approved the initial 10% increase effective January 1, 2026. 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 2025,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. X-E-01 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. At the time, we estimate the costs associated with Well #5 to be about $15M. 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, approximately $1.4M. In May 2025, we submitted the application for Settlement funds to cover construction costs allocated to Well #5. The grant agreement for the Settlement funds for the construction costs allocated to Well #5 is on the August 4 agenda, approximately $13.7M. This agreement also includes provisions for reimbursement of costs allocated to Wells #3 and #7 if later determined to be eligible for Settlement funds. Between the two grant agreements, the total from the East Metro 3M Settlement Fund is approximately $15.1M. In the meantime, the environmental investigations will continue as planned by the MPCA to determine potential connection and eligibility for the City’s other wells. The current round of studies are expected to complete in late 2025. The City and MPCA are meeting in late January 2026 to review the studies. 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. Initial negotiations were with the property owner; tenants were notified in November 2024. 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 X-E-01 extent of potential contamination. The Phase II did not identify impacts that require further actions or additional investigation. A construction contingency plan was included in the bidding documents for the project in case previously unidentified contamination is encountered during construction. Closing on the property occurred April 18, 2025. The businesses at this site (Carbone’s Pizza and Stacy’s Stars) were 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 the Uniform Relocation and Real Property Acquisition Policies Act, 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. On October 29, 2025, the City received notice that Pizza on 50th & France dba Carbone’s Pizza in Hastings is suing the City over the purchase of the property and alleged loss of lease and income. The City disputes the substance of the claims. Our insurer League of Minnesota Cities Insurance Trust is defending the City and has assigned Hoff Barry, PA to handle the suit. In the meantime, the City continues working with Carbone’s Pizza to find a new home in Hastings and relocation benefits. As design reached 60%, we continued 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. In May 2025, we submitted the application for Settlement funds to cover construction costs allocated to Well #5. The City Council approved plans and specifications, and the central WTP was bid in June 2025 as two projects: the raw water main connecting Well #7 and the WTP itself. Mobilization and construction began in late September 2025, with substantial completion to occur in December 2026. 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, have been posted on the City website to maintain public transparency. During our April 7 workshop, City Council discussed several financial aspects for the central WTP. During the 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 X-E-01 does not have the same latitude for the nitrates treatment, as those wells are much closer and occasionally exceeding the threshold. The grant agreement for the Settlement funds for the construction costs allocated to Well #5 was approved on the August 4, for approximately $13.7M. The PFA loan agreement, including the two Emerging Contaminants grants, was approved on August 18, for approximately $10M. Bid opening for the raw water mains from Well #7 was on June 25; bids were competitive. Bid opening for the central WTP itself was July 24; bids were very competitive. Both were approved on August 18. A1 Excavating was hired for the raw watermain portion of the project. Magney Construction was hired for the WTP itself. Construction began in September. In mid November, A1 Excavating wrapped up for the season: first layer of bituminous, wedge along curbs to protect from plow, angle joint on centerline, and seeding of damaged lawns. This will leave the road in passable condition over the winter. Construction will resume in the spring. Following demolition of the existing building, Magney began underground work, such as relocating utilities. Due to concerns at an adjacent property in mid November, vibration monitoring equipment was installed at the construction site to ensure that vibrations won’t damage neighboring properties. There is an alarm set to notify Magney, WSB, and City staff if vibrations approach the limit. We also have forensic engineers inspecting cracks in the foundation next door –alleged to have been caused before we put up the vibration monitors. Financial Impact: Not applicable Committee Discussion: Not applicable Attachments: Not applicable X-E-01