E. B. E. - City of Paynesville, MN

REGULAR CITY COUNCIL MEETINGPAYNESVILLE CITY HALL

JUNE 27, 20126:00 P.M..AGENDA

I. CALL TO ORDERII. PLEDGE OF ALLEGIANCEIII. PRAYER & COUNCIL ACTIVITY REPORTSIV. DEPARTMENT HEAD REPORTS - NoneV. CONSENT AGENDA

A. Minutes (page 1) - Planning Commission (2), Liquor Board, Policies & ProceduresCommittee (2), and Public Works Committee.

B. Vouchers (page 2)C. Street Sweeper Repairs (page 3)D. Tee Hanger Lease - Greg Timm (page 5)E. Personnel Step Increase - Brad Mehlhop (page 15)F. Personnel Step Increase - James Gulbranson (page 16)

VI. NEW BUSINESSA. Fire Department Audit (page 17)B. Irrigation Pump Station (page 57)C. Ranch View Plat - Concept Plan (page 60)

VII. OLD BUSINESSA. Police Chief Position (page 64)B. Emergency Management Director Position (page 65)C. Hwy. 23 (page 66)D. Opportunity Park (page 67)E. Wastewater Re-scoping Project (page 68)F. Airport - Slurry Seal Project (page 85)G. Trail (page 89)H. TIF District No. 1-12 - Stang Precision (page 98)

VIII. INFORMATIONALA. July & August Meeting Schedules (page 99)B. Liquor Store Reports (page 100)C. City of Sartell - Thank you (page 113)D. May Liquor Revenue & Expenses, Incode Financial Reports, City Attorney

Report, Liquor Revenue & Expenses, and Capital Improvement BreakdownReport (emailed to Council) a copy can also be obtained from the accountingdepartment at City Hall.

IX. ADJOURN

Reminder: 6:30 p.m. TIF District No. 1-12 Stang Precision Public Hearing

The agenda has been prepared to provide information regarding an upcoming meeting of thePaynesville City Council. This document does not claim to be complete and is subject to change.

BARRIER FREE: All Paynesville City Council meetings are accessible to the handicapped. Attemptswill be made to accommodate any other individual need for special services. Please contact City Hallat (320) 243-3714 early so that the necessary arrangements can be made.

REQUEST FOR COMMITTEE/COUNCIL ACTION

COMMITTEE/COUNCIL NAME: City CouncilCommittee/Council Meeting Date: June 27,2012Agenda Section: Consent AgendaOriginating Department: AdministrationItem Number: V - AITEM DESCRIPTION: MinutesPrepared by: StaffCOMMENTS:Please review the minutes from the following meetings:MeetingApril 23, 2012 Planning CommissionMay 1, 2012 Liquor BoardMarch 29, 2012 Policies & Procedures CommitteeMay 9,2012 Public Works CommitteeJune 4,2012 Planning CommissionApril 30, 2012 Polices & Procedures Committee

ADMINISTRATOR COMMENTS:

COMMITTEE/COUNCIL ACTION:Motion to approve the minutes from the following meetings:April 23, 2012 Planning CommissionMay 1, 2012 Liquor BoardMarch 29, 2012 Policies & Procedures CommitteeMay 9,2012 Public Works CommitteeJune 4, 2012 Planning CommissionApril 30, 2012 Polices & Procedures Committee

Emailed5-8-126-15-126-4-125-18-126-15-125-1-12

5-8-126-15-126-4-125-18-126-15-125-1-12

\


$ 2,565.92$ 3,907.51$ 1,592.16$ 1,253.03$ 6,522.59$ 20,051.96$162,640.34

#84343-84344#84345-94351#84352#84353-84357+ACH#84358#84359-84406

6/20/126/21/12

COMMITTEE/COUNCIL NAME: City CouncilCommittee/Council Meeting Date: June 27,2012Item Number: V-BITEM DESCRIPTION: VouchersPrepared by: ChrisCOMMENTS:Vouchers:6/14/12

Total $ 198,533.51

Void # 84324

Payroll:6/14/12

ACH:

#84338-84342Direct DepositDirect Deposit

5/12 Liquor Sales Tax

$ 3,448.54$ 10,086.99$ 4,496.24

$ 9,447.00


Total

$ 2,565.92$ 3,907.51$ 1,592.16$ 1,253.03$ 6,522.59$ 20,051.96$162,640.34

$ 198,533.51

#84343-84344#84345-94351#84352#84353-84357+ACH#84358#84359-84406

COMMITTEE/COUNCIL ACTION:Vouchers:6/14/12

6/20/126/21/12

Void # 84324

Payroll:6/14/12

ACH:

#84338-84342Direct DepositDirect Deposit

5/12 Liquor Sales Tax

$ 3,448.54$ 10,086.99$ 4,496.24

$ 9,447.00


COMMITTEE/COUNCIL NAME: City Council

Committee/Council Meeting Date: June 27,2012

Agenda Section: Consent

Originating Department: Administration

Item Number: V - C

ITEM DESCRIPTION: Street Sweeper Repairs

Prepared by: Staff

COMMENTS:

Please review the attached invoice from Torborg Equipment in the amount of $2,678.54 forrepairs on the street sweeper.


COMMITTEE/COUNCIL ACTION:

Motion to approve the invoice in the amount of $2,678.54; payable to Torborg Equipment forstreet sweeper repairs.

Date idnted: 6/11/2012 12:41:09 iM 12'l!orborg Equipment.

P. O. Box3427542 S~ 1m 23

Paynesville, MN 56362320-.243-3798

Quality Parts and Service - Due the 10th

Page .. 1

*******************************************************************************

Sold By: 1 nt ~e: CaG CUst #: 19 Ticket No: 12929

*******************************************************************************

CITY OF PAYNESVILLEClft HALLPAYNESVILLE, _ 56362

*******************************************************************************MOL: MFR: SEa, Has: JOB: sweeper 6/11/2012*******************************************************************************Quant Mfr Part Nuniber Description Bin List COE Price Total------------------------------------------------------------------------------~12. 00 liONE LABOR1. 00 ·NONE 1/81.00 NOlm 801.00 NONE 10162131.00 NQNE 10130171.00 NONE 10098951.0~ NONE 10118721.00 NOP'10083451.00 __ 102:1.7611.00 ~Q~ lQQa$631.00 NONE SHIPPING

.1. OO!I$C Gl15 ,1.00 GG 200080171.00 GG 127~2000

10.00 NONE ARCSO1.00 NOD BLSOP8.00 NOD 1/2

ELBOWOFF SET LINKSh~t mb'DivotJacJcshaft std-sJ:)ivot bracketbearingwasherm b Drive S'DrocketS B driven sprocket

~;rcL~Oi=DRIVEL25 1m SBAF~ COUPLRRO:LLER CWN 1FT

~rel~ ;= ~gLTS

56.00 F42.00 X47.75 X4

325.64 X4692.15 X4152.67 X4193.19 X4

9.10 X4111.32 X488.12 X42S.05 H4

5.87 X423.88 X433 ..59 X417.85 X412.15 X4

1.90 X4

56.002.007.75

325.64692.15152.67193.19

9.10111.3288.1228.055.87

23.9833.5917.8512.151.90

672.002.007.75

325.64692.15152'.67193.19

9.10111.3288.1228.055.8'7

2·3. $~33.59

178.5012.1515.20

LABOR: 672.00 O~HER: 1879.18 Sub-Total. 2551.18BY SaleS-Tax 127.36

Total. $ 2678.54*******************************************************************************Tkt Notes:






Item Number: V-D

ITEM DESCRIPTION: Tee Hangar Lease - Greg Timm

Prepared by: Staff

COMMENTS:

Please review the attached Tee Hangar Lease Agreement between the City of Paynesville andGreg Timm for hangar number 9.



Motion to approve the Tee Hangar Lease Agreement between the City of Paynesville and GregTimm for hangar number 9.

PAYNESVILLE MUNICIPAL AIRPORTTEE HANGAR LEASE

This Agreement made this 15th day of June, 2012 by and between the City of

Paynesville, a municipal corporation (the "City") and Greg Timm of 5433 Rowland

Road, Minnetonka, MN 55343, phone number 612-269-0882, the (the "Tenant");

WHEREAS, the City owns and operates an airport known as the Paynesville

Municipal Airport; and

WHEREAS, the City owns Tee Hangars constructed at the Paynesville

Municipal Airport for purposes of rental to airplane owners for the purpose of

storing their aircraft; and

WHEREAS, the City desires to lease to the Tenant one Tee Hangar for the

purpose of aircraft storage; and

WHEREAS, the Tenant desires to lease one Tee Hangar for the purpose of

storage of an aircraft;

NOW, THEREFORE, in consideration of the rents, covenants and agreements

contained herein, the Tenant does hereby lease from the City and the City does

hereby lease to the Tenant, the premises described below, together with rights

and easements into the airport upon the following terms and conditions:

1) The City leases to the Tenant and the Tenant agrees to lease from the

City a Tee Hangar located at the Paynesville Municipal Airport. This Lease

provides for aircraft storage in a Tee Hangar and minimum electricity for lighting

and miscellaneous use, but no heat or other utilities. This Lease covers Tee

Hangar No.9.

2) The term of the Lease shall be for a period of two (2) years commencing

on the 15th day of June, 2012. This Lease shall automatically renew as long as the

terms of the Lease are not in default and neither the City nor the Tenant gives

notice of intent to terminate in writing within the sixty (60) days prior to the two

(2) year anniversary of the Lease.

3) Tenant shall pay to the City a rental charge of One Hundred Dollars

($100.00) per month due and payable on or before the first day of each month in

advance. The rent for the final month of the term shall be deposited at the time of

the signing of this Lease and shall be security for the Tenant carrying out and

completing all of the covenants, conditions and undertakings herein contained,

including the payment of all rent due hereunder. Rent is due on the first day of

each month. If rent is not paid by the 10th day of the month, it shall be

considered late and a late payment fee of $20.00 shall be assessed. Any

payments received after the 10th day of the month and not accompanied by a late

fee of $20.00 may be rejected and returned. If rent is not paid as it comes due,

the City may pursue the rights and remedies set forth below.

Rental amounts shall be reviewed and may be adjusted by the City on each

two (2) year anniversary of the Lease. Tenant shall be given notice of any increase

at least ninety (90) days prior to the two year anniversary of the lease.

2 1\

4) Any desired alterations to the hangar (i.e., insulation, wiring, lighting,

etc.) shall be submitted to the City in writing for approval prior to the undertaking

of any such work. Any changes must meet Minnesota Building Code standards.

The hangar shall be returned to previous conditions when the Tenant vacates,

unless otherwise agreed in writing between the City and the Tenant.

5) No signs or advertising matter shall be erected by the Tenant without

prior written consent of the City.

6) The Tenant shall keep the leased premises continually in a neat, clean

and respectable condition, garbage and refuse of any kind to be removed at

Tenant's expense. The Tenant shall return the leased premises to the same

condition as delivered to the Tenant, reasonable wear and tear excepted. The

Tenant shall remove any and all fixtures the Tenant has installed upon the leased

premises at the termination of the Lease, and restore the premises following such

fixture removal to its original condition unless otherwise agreed in writing between

the Lessor and the Tenant.

7) The Tenant shall not suffer or permit any waste or nuisance on the

leased premises, including specifically, but not exclusively, bUilding materials or

anything which interferes with the rights of other Tenants or the City in connection

with the use of portions of the Airport not leased to the Tenant hereunder.

8) Tenant shall be responsible to obtain and maintain one fire extinguisher

in Tenant's Tee Hangar. The fire extinguisher shall be properly maintained.

3

9) The Tenant shall have the right to the non-exclusive use in common with

others of airport parking areas, appurtenances, improvements thereon; rights of

ingress and egress from the leased premises, which rights shall extend to Tenant's

employees, guests and patrons; and the rights in common with others authorized

to do so, to use common areas of the airport, including runways, taxi ways,

aprons, roadways, arrival and departure areas and other conveniences for take

off, flying and landing of aircraft, sUbject to charges for such use as may be

established from time to time by the City.

10) The Tenant shall observe and obey all laws, ordinances, rules and

regulations promulgated and enforced by the City, and by ot/1er proper authority

having jurisdiction over the conduct of operations at the airport.

11) The Tenant shall not voluntarily or involuntarily assign, hypothecate or

transfer this Lease or any interest therein without the prior written consent of the

City. The Tenant shall not sublet the above premises without the prior written

consent of the City.

12) The Tenant shall indemnify and agrees to defend and hold harmless the

City from and against all claims, costs and expenses including but not limited to

attorneys fees, damages and liabilities of any nature whatsoever that may be

imposed on, incurred by, or asserted against the City by any person for any act or

omission of the Tenant, its agents, employees, subsidiaries, licensees or invitees.

13) Each Tenant shall maintain such casualty and other insurance as the

Tenant deems appropriate to protect the Tenant's interests in their personal

property and any aircraft or equipment stored within their Tee Hangar.

4

14) If the Tenant fails to pay rent due hereunder within ten (10) days after

the date due, or if the Tenant shall, by act or omission, violate any other terms,

covenant or condition of this Lease, and shall fail to correct such violation within

thirty (30) days after notice in writing to the Tenant of demand therefore, or if the

Tenant shall be declared insolvent or adjudicated bankrupt, or make a general

assignment for the benefit of the creditors, or if a receiver or trustee of the

Tenant's property shall be appointed by any Court; or if the leased premises shall

be abandoned; then and in any such events, the City may, without further notice

or demand to the Tenant:

a) Immediately, or at any time thereafter, re-enter the leased premises andtake possession thereof without such re-entry working as a forfeiture ofrents or other charges to be pad and of the terms, covenants and conditionsto be performed by the Tenant for the full term of the Lease, and in theevent of such re-entry, the City may proceed for the collection of the rentsor other charges to be paid under this Lease or for such other propermeasure of damages; or

b) Terminate this Lease by written notice and re-enter the leased premises,and the Tenant covenants in case of such termination to indemnify the Cityagainst all loss of rent and expense w~lich the City has suffered or paid byreason of such termination, during the residue of the term.

The City shall have all other rights and remedies, including injunctive relief,

ejection, or summary proceedings in unlawful detainer, and any other legal

remedies, actions and proceedings. All such rights and remedies are cumulative.

15) The City reserves the right to enter the leased premises at any time for

the purpose of making any inspection it deems expedient to proper enforcement of

any of the covenants and conditions of this Agreement. The City will make a

reasonable effort to contact the Tenant before entering the Tenant's Tee Hangar.

5

When possible the Tenant shall be allowed to accompany a City representative in

entering the leased premises for inspection purposes.

16) Tenant's shall not place any additional locking devices on the service

door to the Tenant's Tee Hangar.

17) The use of the premises shall be for the purpose of storage of aircraft.

Tenant shall provide proof of an ownership interest in the aircraft stored in the

leased space. An ownership interest would include rights in the aircraft through a

rental or lease agreement or a share of ownership. Incidental storage of other

items owned by the Tenant shall be permitted, provided that the Tenant continue

to store an aircraft within the facility. The hangar must not be used for general

storage. There shall be no outside storage of any kind. No one shall stay

overnight in the hangar facility. Where the aircraft stored in a hangar is owned by

multiple parties, all parties with an ownership interest in the aircraft shall sign this

Tee Hangar lease.

18) In no case shall any hazardous materials of any type be stored within

the leased facilities. There shall be no storage of containers of 100 octane aviation

fuel except such fuel within aircraft's fuel tank in the leased facility. In hangars

occupied by aircraft which use gasoline other than 100 octane aviation fuel,

gasoline may be stored in proper gas cans not to exceed two six gallon containers.

No barrels are permitted.

19) The City reserves the right to further develop or improve the landing

area of the airport as it sees fit, regardless of the desires or view of the Tenant,

and without interference or hindrance.

6

20) The City reserves the right, but shall not be obligated to the Tenant to

maintain and repair the landing area of the Airport and all publicly owned facilities

of the Airport, together with the right to direct and control all activities of the

Tenant in that regard.

21) The City reserves the right to take any action it considers necessary to

protect aerial approaches to the Airport against obstruction, together with tile

right to protect the Tenant from erecting or permitting to be erected any building

or other structure on the Airport which, in the sole opinion of the City, would limit

the usefulness of the Airport or constitute a hazard to aircraft.

22) The waiver by the City of any breacll of any term or covenant or

condition herein contained shall not be deemed to be a waiver of any subsequent

breach of the same or any other term, covenant or condition contained herein

23) Tenant shall not conduct commercial operations from the leased

premises without the City's written approval.

24) All notices provided by law or by this Lease to be given to the Tenant or

to the City must be in writing. Notice to the City shall be directed to the City

Administrator of the City of Paynesville at 221 Washburne Avenue, Paynesville, rvlN

56362. Notice to the Tenant shall be sent to the Tenant at 5433 Rowland Rd ,

Minnetonka, MN 55343. The City or Tenant may designate a new address by

written notice as provided herein. Notice shall be deemed given as of the date

such notice is deposited, postage paid in the United States mail.

25) If it shall be in the public interest, the City shall have the power to

condemn this Lease even though it is itself a party to the Lease.

7

26) This Lease shall be subordinate to the provisions of any existing or

future agreement between the City and the United States of America or the State

of Minnesota relative to the operation or maintenance of the Airport, the execution

of which has been or may be required as a condition precedent to the expenditure

of Federal or State funds for the development of the Airport. This Lease

constitutes the sole agreement between the parties. There are no oral or

contemporaneous agreements which are not contained herein. This Agreement

may not be modified except in writing, signed by the Mayor and the City

Administrator on behalf of the City and by the Tenant. The provisions of this

Lease are severable. The invalidity of a particular term shall not affect the validity

of any other term.

27) The Tenant, for itself, its personal representatives, successors or

assigns, does hereby covenant and agree that:

a) No person on the grounds of race, color or national ongm shall beexcluded from the right to use the above-described premises if the Tenantshall decide to sublet any portion of the premises;

b) That in the construction of any improvements on, over or under theabove-described premises and the furnishing of services thereon, no personon the grounds of race, color or national origin shall be excluded fromparticipating in, denied the benefits of or otherwise subjected todiscrimination; and

c) That the Tenant shall use the premises in compliance with therequirements imposed by or pursuant to Title 49, Code of FederalRegulations, and all regulations of the Minnesota Department ofTransportation, Office of Aeronautics, and in compliance with the Civil RightsAct of 1964.

8

28) Hangar doors shall be kept closed and locked and all lights shall be

turned off except when the facilities are being used. Vehicles must be parked so

as not to interfere with aircraft or snow removal operations.

29). Snow removal and maintenance of ground surrounding the Tee Hangars

will be the responsibility of the City. Snow will be removed at a distance from the

hangar door which can be safely accomplished without incurring damage to the

hangar or the snow removal equipment. Snow removal operations will be

accomplished in accordance with priorities set forth by the City of Paynesville

snowplowing policy. Removal of any snow or ice remaining after plowing

operation ceases is the responsibility of the Tenant.

CITY OF PAYNESVILLE:

By: _Jeff Thompson, Mayor

By: _Renee Eckerly, City Administrator

TENANT:

By: _Greg Timm

9\~






Item Number: V - E

ITEM DESCRIPTION: Personnel- Step Increase (Brad Mehlhop)

Prepared by: Chris

COMMENTS:

Brad Mehlhop, Maintenance Worker Intermediate has successfully completed his performancereview. Brad is eligible for a step increase from Grade 5, Step 3 ($14.17) to Grade 5, Step 4($15.13) retroactive to 5/29/12. The Policies and Procedures Committee has approved thisincrease.



Motion to approve step increase for Brad Mehlhop from Grade 5, Step 3 ($14.17) to Grade 5,Step 4 ($15.13) retroactive to 5/29/12.






Item Number: V - F

ITEM DESCRIPTION: Personnel - Step Increase (James GUlbranson)

Prepared by: Chris

COMMENTS:

James Gulbranson, Part-time Police Officer has successfully completed his annual performancereview. James is eligible for a step increase from Police Department Wage Scale Step 3 ($17.75)to Police Department Wage Scale Step 4 ($18.95) retroactive to 6/3/12. The Policies andProcedures Committee has approved this increase.



Motion to approve step increase for James Gulbranson from Police Department Wage Scale Step3 ($17.75) to Police Department Wage Scale Step 4 ($18.95) retroactive to 6/3/12.

\\2




Agenda Section: New Business


Item Number: VI - A

rrEM DESCRIPTION:

Prepared by: Staff

COMMENTS:

Fire Department Audit

Representative(s) from the Fire Department will be in attendance to present the 2011 FireDepartment Audit.



Motion to approve the 2011 Fire Department Audit.

PAYNESVILLE FIRE DEPARTMENTRELIEF ASSOCIATIONPaynesville. Minnesota

AUDITED FINANCIAL STATEMENTSFor the Years Ended December 31. 2011 and 2010

PAYNESVILLE FIRE DEPARTMENT RELIEF ASSOCIATIONPaynesville, Minnesota

TABLE OF CONTENTS

INDEPENDENT AUDITOR'S REPORT......... 1

BASIC FINANCIAL STATEMENTS:Statement of Net Assets and Governmental Fund Balance Sheet - General Fund '" '" .. .. 3Statement of Activities and Governmental Fund Revenues, Expenditures and

Changes in Fund Balance - General Fund........................ 4Statement of Fiduciary Net Assets - Special Pension Trust Fund............... 5Statement of Changes in Fiduciary Net Assets - Special Pension Trust Fund... 6Notes to the Financial Statements '" " , .. . 7

REQUIRED SUPPLEMENTARY INFORMATION:Schedule of Funding Progress - Special Pension Trust Fund......... 14Note to the Required Supplementary Information............................................................. 15

SCHEDULE OF FINDINGS AND RECOMMENDATIONS 16

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND MINNESOTALEGAL COMPLIANCE............ 17

Habben Hennen & Co., P.A.A Certified Public Accounting Firm

June 14, 2012

Alan E. Habben, CPA.

INDEPENDENT AUDITORS' REPORT

Susan M. Hennen, RAP.

Board of Trustees.Paynesville Fire Department Relief AssociationPaynesville, Minnesota

We have audited the accompanying financial statements of the governmental activities, each majorfund and the fiduciary fund information of the Paynesville Fire Department Relief Association as of andfor the year ended December 31, 2011, which collectively comprise the Association's basic financialstatements as listed in the Table of Contents. These basic financial statements are the responsibility ofthe Association's management. Our responsibility is to express an opinion on these basic financialstatements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United Statesof America. Those standards require that we plan and perform the audit to obtain reasonableassurance about whether the basic financial statements are free of material misstatement. An auditincludes examining, on a test basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used and significant estimatesmade by management, as well as evaluating the overall basic financial statement presentation. Webelieve that our audit provides a reasonable basis for our opinion.

In our opinion, the basic financial statements referred to above present fairly, in all material respects,the respective financial position of the governmental activities, each major fund and the fiduciary fundinformation of the Paynesville Fire Department Relief Association as of December 31, 2011, and therespective changes in financial position, thereof for the year then ended in conformity with accountingprinciples generally accepted in the United States of America.

The required supplementary information referred to in the table of contents is not a required part of thebasic financial statements but is supplementary information required by the Governmental AccountingStandards Board. We have applied certain limited procedures to this information, which consistedprincipally of inquiries of management regarding the methods of measurement and presentation of therequired supplementary information. However, we did not audit the information and express no opinionon it.

The Paynesville Fire Department Relief Association has not presented the Management's Discussionand Analysis that United States generally accepted accounting principles require to supplement,although not to be a part of, the Basic Financial Statements.

HABBEN, HENNEN &CO PAPaynesville, Minnesota

-1-

203 Washburne Ave., Suite 100, Paynesville, MN 56362 710 CSAH 75 E. Suite 104, P.O. Box 238, St. Joseph, MN 56374PH: 320-243-3459· Fax: 320-243-7520· E-mail: [email protected] PH: 320-363-4589. Fax: 320-363-1333. E-mail: [email protected]

BASIC FINANCIAL STATEMENTS·

-2-


STATEMENT OF NET ASSETS AND GOVERNMENTAL FUNDBALANCE SHEET -- GENERAL FUND

For the Years Ended December 31,2011 and 2010

December 31,2011 2010

ASSETS:CashInvestments-certificate of deposit

LIABILITIES AND EQUITY:Net Assets - UnrestrictedFund Balance - Unreserved, Undesignated

See notes to financial statements.

$ 14,3351,593

$ 15,928

$ 15,928

$ 11,4381,580

$ 13,018

$ 13,018

-3-


GENERAL FUNDSTATEMENT OF ACTIVITIES AND GOVERNMENTAL FUND REVENUES,

EXPENDITURES AND CHANGES IN FUND BALANCEFor the Years Ended December 31, 2011 and 2010

Year Ended December 31,2011 2010

REVENUES:Fundraising $ 13,746 $ 9,284Interest and Dividends 19 24Other 2,140 1,472

TOTAL REVENUES 15,905 10,780

EXPENDITURES:Fundraising Expenditures 6,051 4,144Meeting 1,001 1,006Dues 150Equipment 4,668 6,216Printing 608 285Supplies 451 649Other 216 242

TOTAL EXPENDITURES 12,995 12,692

EXCESS OF REVENUES OVER (UNDER)EXPENDITURES AND TRANSFERS 2,910 (1,912)

FUND BALANCE -- January 1 13,018 14,930

FUND BALANCE -- December 31 $ 15,928 $ 13,018

See notes to financial statements.-4-


SPECIAL PENSION TRUST FUNDSTATEMENT OF FIDUCIARY NET ASSETS

As of December 31, 2011 and 2010December 31,

2011 2010ASSETS:Cash and Cash Equivalents

Investments, at Fair Value:Certificates of DepositMutual Funds

Total Investments

Accounts Receivable

Total Assets

LIABILITIES:Benefits Payable

Net Assets:Held in Trust for Pension Benefits (A Schedule of Funding

Progress for the Plan is presented on Page 14.)

See notes to financial statements.

$ 37,694

102,910421,712524,622

$ 562,316

$ 562,316

$ 8,301

101,604458,234559,838

$ 568,139

$ 568,139

-5-


SPECIAL PENSION TRUST FUNDSTATEMENT OF CHANGES IN FIDUCIARY NET ASSETS

For the Years Ended December 31, 2011 and 2010

Year Ended December 312011 2010

ADDITIONS:Contributions --

State of Minnesota $ 26,838 $ 24,750Dues and Other 382 150City of Paynesville 8,372 8,131

Total Contributions 35,592 33,031

Investments --Net Appreciation (Depreciation) in

Fair Value of Investments (50,883) 55,246Interest and Dividends 16,868 12,092

Total Investment Increase (34,015) 67,338

TOTAL ADDITIONS 1,577 100,369

DEDUCTIONS:Benefits 76,333Investment Expense 4,569 3,910Administrative Expense 2,831 2,735

TOTAL DEDUCTIONS 7,400 82,978

NET INCREASE (DECREASE) (5,823) 17,391

NET ASSETS HELD IN TRUST FOR PENSIONBENEFITS:

BEGINNING OF YEAR 568,139 550,748

END OF YEAR $ 562,316 $ 568,139

See notes to financial statements.-6-

J


NOTES TO THE FINANCIAL STATEMENTSDecember 31, 2011

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A. Fund Accounting

The resources of the Paynesville Fire Department Relief Association (the "Association") are accountedfor in two funds: .

Special Fund - This Fund is a pension trust fund for the accumulation of resources to be usedfor retirement, dependency and disability payments of appropriate amounts and at appropriatetimes in the future. Resources are contributed by the City of Paynesville at amountsdetermined by law (taxes) and from the 2% insurance premium tax and amortization aid fromthe State of Minnesota.

General Fund - This Fund is a governmental fund, which accounts for the resources notaccounted for in the Special Fund. It is used for the good and benefit of the Association asdetermined by Association bylaws. Its resources consist of membership dues, fundraiserproceeds, investment earnings and miscellaneous sources.

B. Government-Wide and Fund Financial Statements

The government-wide financial statements (Le., the Statement of Net Assets and the Statement ofActivities) report information on all of the non-fiduciary activities of the Association.

Financial statements are provided for the General Fund. However, as this Fund is the onlygovernmental activity of the Association and because no reconciling items exist between the twodifferent bases of accounting described below, this Fund's statements are combined with thegovernment-wide statements for presentation.

C. Measurement Focus, Basis of Accounting and Financial Statement Presentation

The government-wide financial statements are reported using the economic resources measurementfocus and the accrual basis of accounting, as are fiduciary fund financial statements. Revenues arerecorded when earned and expenses are recorded when a liability is incurred, regardless of the timingof related cash flows.

Governmental fund financial statements are reported using the current financial resourcesmeasurement focus and the modified accrual basis of accounting. Revenues are recognized as soonas they are both measurable and available. Revenues are considered to be available when they arecollectible within the current period or soon enough thereafter to pay liabilities of the current period. Forthis purpose, the Association considers revenues to be available if they are collected within 60 days ofthe end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, asunder accrual accounting.

D. Comparative Data

Comparative data for the prior year has been presented in the accompanying financial statements toprovide an understanding of changes in the Association's financial position and operations.

-7-



NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

E. Cash and Investments

The Association's cash and cash equivalents are considered to be cash on hand, deposits and highlyliquid debt instruments purchased with original maturities of three months or less from the date ofacqUisition.

Minnesota Statutes requires all deposits be protected by federal deposit insurance, corporate suretybonds or collateral. The market value of collateral pledged must equal 110% of the deposits notcovered by Federal Deposit Insurance Corporation (FDIC) insurance or corporate surety bonds.

The Association has adopted a policy to address custodial credit risk for deposits requiring deposits tobe made in conformance with state statutes.

Minnesota Statutes authorizes the Association to invest in obligations of the U.S. Treasury, agenciesand instrumentalities, shares of investment companies whose only investments are in theaforementioned securities, obligations of the State of Minnesota or its municipalities, bankers'acceptances, future contracts, repurchase and reverse repurchase agreements and commercial paperof the highest quality with a maturity of no longer than 270 days and in the Minnesota MunicipalInvestment Pool. Investments are stated at fair value.

The Association's investment policy includes verbiage that discourages investment in highly volatile andlow quality rated securities in order to reduce its interest and credit risks. It also specifies a targetpercentage for its mix of investments, which pertains to the Association's concentration risk. Theinvestment categories include equities, fixed income and short-term investments. The policy addressescustodial credit risk again by stating that investments are to be made in conformance with statestatutes.

NOTE 2 - DEPOSITS AND INVESTMENTS

A. Deposits

In accordance with applicable Minnesota Statutes, the Association maintains deposits at depositorybanks authorized by the Association's Board.

Custodial Credit Risk: As of the December 31, 2011, the Association's bank balance of $52,029 wasnot exposed to custodial credit risk because it was fully insured through FDIC insurance. The bookbalance as of December 31, 2011 was also $52,029.

-8-

J'/\.




B. Investments

As of December 31, 2011, the Association had the following investments:

Investments Maturityat Fair Value Concentration Date

Certificates of DepositCentral MN Federal Credit Union 60,047 11.41% 6/29/2012Central IVIN Federal Credit Union 42,863 8.15% 8/19/2012Bank of the West 1,593 0.30% 8/4/2012

Mutual FundsAmerican FD Capital World Growth & Income 59,176 11.25% NlADodge & Cos International 54,145 10.29% NlAFidelity Advisor Leveraged Co 33,654 6.40% NlAING Value Choice Fund A 34,061 6.47% NlAJennison Natural Resources Fund 47,281 8.98% NlAING Global Real Estate Fund A 20,712 3.94% NlAJennison Utility Fund B 24,699 4.69% NlAOppenheimer Inti Bond A 52,458 9.97% NlARoyce Value Plus Service Class 20,690 3.93% N/ARoyce Total Return Fund 21,882 4.16% NlATempleton Global Bond Fund A 52,954 10.06% NlA

Total Investments 526,215 100.00%

Concentration of Credit Risk: As of December 31, 2011, investments consisting of two certificates ofdeposit and seven different mutual funds with a fair value of $333,729 were exposed to concentration ofcredit risk as they exceeded 5% of the Association's total investments as noted in the previous table.The Central MN Federal Credit Union fair value comprises the largest portfolio value at 19.56% but isfully insured. The strategy of the Association is to purchase quality grade investments with a "buy andhold" emphasis.

Custodial Credit Risk: The investments of the Association were not exposed to custodial credit risk asthe stock was insured, registered and held by the counterparty's trust department in the name of theAssociation. The mutual funds are open-ended, thus custodial credit risk does not apply.

-9-

/},~




B. Investments

As of December 31, 2011, the Association had deposits and investments as follows:

Checking and SavingsInvestments

Total Deposits and Investments

$ 52,029526,215

$ 578,244

Deposits and investments are classified on the December 31, 2011 Balance Sheet as follows:

Statement of Net Assets and Governmental FundBalance Sheet -- General Fund:

CashInvestments at Fair Value

Statement of Fiduciary Net Assets:Cash and Cash EquivalentsInvestments at Fair Value

Total

C. Valuation of Investments - Special Pension Trust Fund

$ 14,335$ 1,593

37,694524,622

$578,244

The Association recognizes investment income when it is earned. Investments are valued at fair value.Securities traded on national or international exchanges are valued at the last reported sales price atcurrent exchange rates. There were no investments in, loans to or leases with, parties related to thepension plan.

NOTE 3 - PLAN DESCRIPTION

A. General Information

Firefighters of the City of Paynesville are members of the Paynesville Fire Department ReliefAssociation and Rescue Squad. The Association is the administrator of a single-employer definedbenefit pension plan available to firefighters that operates under the provisions of Minnesota StatutesCh 424A. It is governed by a board of six members elected by the members of the Association for athree year term. The City's Mayor, City Clerk and Fire Chief are ex officio, voting members of theBoard of Trustees.

The Plan is funded by contributions from the City of Paynesville and 2% fire aid from the State ofMinnesota.

For financial reporting purposes, the Association's financial statements are not included with the City ofPaynesville's financial statements because the Association is not a component unit of the City.

-10-


NOTES TO THE FINANCIAL STATEMENTSDecember 31,2011

NOTE 3 - PLAN DESCRIPTION

B. Current Membership

As of December 31, 2011, membership data related to the Association was:

Retirees entiijed to benefits but not yet receiving themActive Participants:

FUlly vestedPartial and Nonvested

Total

C. Benefits Provisions

4

521

30

Each member who is at least 50 years of age, has retired from the fire department, has served at least20 years of active service with such department before retirement and has been a member of theAssociation in good standing at least 20 years prior to such retirement shall be entitled to a lump sumservice pension in the amount of $2,000 for each year of active service but not exceeding the maximumamount per year of service allowed by law for the minimum average amount of available financing perfirefighter as prescribed by law.

If a member of the Association shall become permanently or totally disabled, the Association shall paythe sum of $2,000 for each year the member was an active member of the Paynesville FireDepartment. If a member who received a disability pension subsequently recovers and returns toactive duty, the disability pension is deducted from the service pension.

Completed Yearsof Service

5678910111213141516171819

20 and thereafter

NonforfeitablePercentage of

Pension Amount40%44%48%52%56%60%64%68%72%76%80%84%88%92%96%

100%

The payment amount will be calculated by using the amount payable per year of service in effect at thetime of such early retirement, multiplied by the number of accumulative years of service, mUltiplied bythe appropriate percentage as defined above.

During the time a member is on early vested pension, they will not be eligible for disability benefits.

These benefit provisions may be amended by a favorable vote of two-thirds of members present andvoting, provided a quorum exists at any regular or special meeting. This benefit amendment must alsobe ratified by the City Council.

-11-

PAYNESVILLE FIRE DEPARTMENT REIJEF ASSOCIATIONPaynesville, Minnesota

NOTES TO THE FINANCIAL STATEMENTSDecember 31,2011

NOTE 4 - CONTRIBUTIONS AND RESERVES

Contributions by the City of Paynesville are determined in accordance with Minnesota Statutes asfollows:

Normal Cost for Next Year (Increase in Pension Benefit Obligation)Plus Estimated Expenses for Next Year and 10% of Any DeficitsLess Anticipated Income Next Year and 10% of Any Surplus

The State of Minnesota contributes amortization aid, or 2% fire aid, in accordance with state statuterequirements. Plan members are not required to contribute to the Plan. The state legislature mayamend contribution requirements of the City and State. Municipal contributions are determined by thepreparation of Schedules I and II, which must be certified to the City of Paynesville by August 1 of thepreceding calendar year.

The State of Minnesota, in accordance with state statute requirements, made contributions totaling$26,838 and $24,750 for the years ended December 31, 2011 and 2010, respectively.

NOTE 5·RISK MANAGEMENT

The Association is exposed to various risks of loss related to torts; theft of, damage to, and destructionof assets; errors; and omissions. The Association manages its risk of loss by obtaining commercialinsurance. There were no significant reductions in insurance coverage from previous years, nor havethere been settlements in excess of insurance coverage for any of the past three fiscal years.

-12-

REQUIRED SUPPLEMENTARY INFORMATION

-13-


SCHEDULE OF FUNDING PROGRESS --SPECIAL PENSION TRUST FUND

USALasaStatutory Statutory (Overfunded) % of

Valuation Value of Accrued Unfunded Funded Covered CoveredDate Assets Liability (SAl) SAL Ratio Payroll Payroll

12/31/11 $562,316 $642,331 $80,015 87.54% N1A NJA12/31/10 568,139 605,414 $37,275 93.84% N1A NJA12/31/09 550,748 612,254 61,506 89.95% N1A NJA12/31/08 415,704 584,846 169,142 71.08% N1A NJA12/31/07 598,099 515,741 (82,358) 115.97% N1A NJA12/31/06 492,683 373,023 (119,660) 132.08% N1A NJA12/31/05 404,032 347,236 (56,796) 116.07% N1A NJA12/31/04 310,022 314,352 4,330 98.62% N1A NJA12/31/03 298,010 314,352 16,342 94.80% N1A NJA12/31/02 265,432 313,440 48,008 84.68% NlA NJA12/31/01 299,771 310,872 11,101 96.43% NlA NJA12/31/00 286,594 280,374 (6,220) 102.22% N1A NJA12/31/99 256,340 233,340 (23,000) 109.86% NlA NJA12/31/98 249,947 245,160 (4,787) 101.95% NlA NJA

ACRONYMS

SAL -- Statutory Accrued LiabilityUSAL --Unfunded Statutory Accrued Liability

The Paynesville Fire Department Relief Association is comprised of volunteers; therefore, there are nopayroll expenditures (i.e., there are no covered payroll percentage calculations).

-14-


NOTE TO REQUIRED SUPPLEMENTARY INFORMATIONDecember 31, 2011

Additional information regarding statutory assumptions and valuation methods are outlined below:

Schedules I and II Valuation Date

Statutory Assumptions:Administrative Expense IncreaseInvestment Rate of Return2011 State Aid ContributionAmortization of Pension Benefit Surplus(Deficit)

August 1, 2011

3.5%5.0%

100.0%10.0%

-15-t\1j


SCHEDULE OF FINDINGS AND RECOMMENDATIONSFOR THE YEAR ENDED DECEMBER 31, 2011

INTERNAL CONTROL OVER FINANCIAL REPORTING

10-1 Internal Control/Segregation of Duties

Management is responsible for establishing and maintaining internal control. This responsibilityincludes the internal control over the various accounting cycles, the fair presentation of thefinancial statements and related notes, and the accuracy and completeness of all financialrecords and related information. Adequate segregation of duties is a key internal control in anorganization's accounting system. The size of the Paynesville Fire Department ReliefAssociation and its staffing limits the internal control that management can design andimplement into the organization. This situation is not unusual in operations the size of thePaynesville Fire Department Relief Association, but the Board of Trustees should constantly beaware of this condition and realize that the concentration of duties and responsibilities in alimited number of individuals is not desirable from an internal control and accounting point ofview.

Generally, segregation of duties can be attained with the hiring of additional personnel;however, this becomes a significant cost consideration to entities such as the Paynesville FireDepartment Relief Association. Under the above conditions, the most effective system ofcontrol lies in the knowledge of the Board of Trustees regarding the Association's operationsand the periodic review of those operations. We recommend the Board of Trustees be mindfulthat limited staffing causes inherent risks in safeguarding the Association's assets and theproper reporting of its financial activity.

Client's Response:

The Paynesville Fire Department Relief Association Board of Trustees acknowledge theconcentration ofour duties and responsibilities as an undesirable consequence of ouroperation. We understand the importance ofour duties and have enlisted the assistance of ourlong-term business partners ofour accountant and our financial custodians to continua//ymonitor our daily operations.

-16-

4

Habben Hennen & Co., P.A.A Certified Public Accounting Firm

Alan E. Habben, CPA. Susan M. Hennen, RAP.


REPORT ON INTERNAL CONTROL OVER FINANCIALREPORTING AND MINNESOTA LEGAL COMPLIANCE

Board of TrusteesPaynesville Fire Department Relief Association

Internal Control Over Financial Reporting

In planning and performing our audit of the basic financial statements of the Paynesville FireDepartment Relief Association as of and for the year ended December, 31, 2011, in accordancewith auditing standards generally accepted in the United States of America, we considered thePaynesville Fire Department Relief Association's internal control over financial reporting as abasis for designing our auditing procedures for the purpose of expressing our opinion on thefinancial statements, but not for the purpose of expressing an opinion on the effectiveness of thePaynesville Fire Department Relief Association's internal control over financial reporting.Accordingly, we do not express an opinion on the effectiveness of the Paynesville FireDepartment Relief Association's internal control over financial reporting.

A control deficiency exists when the design or operation of a control does not allow managementor employees, in the normal course of performing their assigned functions, to prevent or detectmisstatements on a timely basis. A significant deficiency is a control deficiency, or combinationof control deficiencies, that adversely affects the Paynesville Fire Department ReliefAssociation's ability to initiate, authorize, record, process, or report financial data reliably inaccordance with generally accepted accounting principles such that there is more than a remotelikelihood that a misstatement of the Paynesville Fire Department Relief Association'sfinancial statements that is more than inconsequential will not be prevented or detected by thePaynesville Fire Department Relief Association's internal control over financial reporting.

A material weakness is a significant deficiency. or combination of significant deficiencies, thatresults in more than a remote likelihood that a material misstatement of the financial statementswill not be prevented or detected. by the Paynesville Fire Department Relief Association'sinternal control.

Our consideration of internal control over financial reporting was for the limited purposedescribed in the first paragraph and would not necessarily identify all deficiencies in the internalcontrol over financial reporting that might be significant deficiencies ormaterial weaknesses.We did not identify any deficiencies in internal control over financial reporting that we considerto be material weaknesses, as defined above. However, we identified the deficiency described inthe accompanying Schedule of Findings and Recommendations as item 10-1 to be a significantdeficiency in internal control over financial reporting.

Minnesota Legal Compliance

We have audited the basic financial statements of the Paynesville Fire Department ReliefAssociation as of and for the year ended December 31,2011. We conducted our audit inaccordance with auditing standards generally accepted in the United States of America and the

203 Washburne Ave., Suite 100. Paynesville, MN 56362 710 CSAH 75 E, Suite 104, P.O. Box 238, St.Joseph, MN 56374PH: 320-243-3459· Fax: 320-243-7520· E-mail: alan@habbenhennen,com PH: 320-363-4589· Fax: 320-363-1333. E-mail: habbenhenn..nlii>nwp.tnffi~p hAt

provisions of the Minnesota Legal Compliance Audit Guide for Local Government, promulgatedby the State Auditor pursuant to Minn. Stat. § 6.65. Accordingly, the audit included such tests of theaccounting records and such other auditing procedures as we considered necessary in thecircumstances.

The Minnesota Legal Compliance Audit Guide for Local Government covers three categories ofcompliance to be tested in audits of relief associations: deposits and investments, conflicts ofinterest, and relief associations. Our study included all of the listed categories.

The results of our tests indicate that, for the items tested, the Paynesville Fire DepartmentRelief Association complied with the material terms and conditions of applicable legalprovisions.

The Paynesville Fire Department Relief Association's written response to the significantdeficiency identified in our audit has been included in the Schedule of Findings andRecommendations. We did not audit the Paynesville Fire Department Relief Association'sresponse and, accordingly, we express no opinion on it

This report is intended solely for the information and use of the Board of Trustees and otherswithin the Paynesville Fire Department Relief Association and is not intended to be, and shouldnot be, used by anyone other than those specified parties.

HABBEN HENNEN & CO. PAPaynesville, Minnesota

June 14, 2012

2012 Maximum Benefit Worksheet (MBW-12)

Paynesville Fire Relief AssociationPlan Name:-------_---=-.:~:::..:...::=..:::....::..=.-=::.:::....:..::.:::::~:=.:;:,:.:...-_-------

Plan Type: Lump Sum

Enter data in columns A, B, C and D for each year requested.

A B C D E- Stai'Fir;"Aid- 1--------- -------1--------~-------Active Members Per Year

(Received or Municipal 10% of in Relief AverageReceivable) Contribution Surplus * Association [ (A + B + C) / DJ

(From RF-ll) (From RF-II) (SC-ll or Actuarial) (From RF-ll)

2011 24,838 8,372 0 26 };&.77(From RF-IO) (From RF-IO) (SC-IO or Actuarial) (From RF-IO) ..

,2010 24,750 8,131 0 24 )/3?~ ,

(From RF-09) (From RF·09) (SC·09 or Actuarial) (From RF-09)

2009 22,906 5,000 0 24 1,i~3

* If deficIt for the year, leave blank.

Average available financing per active member for the most recent 3-year period:(sum of column E divided by 3)

Maximum Lump Sum Benefit Level under Minn. Stat. § 424A.02, subd. 3

I' 1;g~9·. II 2,300. I

Relief Officer Certification

On or before August 1, the average amount of available financing per active member for the most recentthree-year period was calculated in accordance with Minn. Stat. § 424A.02, subd. 3, and certified to thegoverning body of the applicable qualified municipality.

Signature ofRelief Association Officer Date

First Name Last Name Title

Form SID-ll

Investment Disclosure Report Form(Total Market Value Less Than $25 Million)

For the Year Ended December 31, 2011

Public Pension Plan Name Paynesville Fire Relief Association

Contact Person

Investment Advisor/Broker

TomFirst Name

JEREMYFirst Name

FordyceLast Name

WILLNERLast Name

When completing the attached form, make sure the Public Pension Plan includes ALL SPECIALFUND ACCOUNTS in each quarter's total portfolio market values including checking accounts,savings accounts, brokerage accounts, etc.

If, on January 1, 2011, the Public Pension Plan's total market value of assets was less than $25million, and the fund has never filed using Form BID, the Public Pension Plan must file usingForm SID. If the Public Pension Plan equals or exceeds $25 million in total market value, thePublic Pension Plan must file Form BID. Once the Public Pension Plan has filed Form BID, itwill be required to file Form BID in the future regardless of asset size.

The Public Pension Plan may include computed time-weighted rates of return with the report, inaddition to all other required information, as applicable. If returns are supplied, the method usedto calculate rates of return must comply with that specified in law.

Has the Public Pension Plan collected and retained the following information:(Please retain and be able to submit individual account or portfolio data to the Office of the State Auditor on request.)

- Signed Broker Certification form(s) (BC-I)?

- Signed Statements of Economic Interest?

- Signed Investment Business Recipient Disclosure Form?

_ The market value ofeach investment account and investmentportfolio at the beginning of the calendar year and for each quarterpursuant to Minn. Stat. §356.219, subd. 3(g)?

_ The date and amount of each injection and withdrawal to eachinvestment account and investment portfolio pursuant to Minn.Stat. §356.2I9, subd. 3(g)?

_ Did the Public Pension Plan amend its investment policy statementin 2011?

Failure to file investment disclosure reporting forms as required by law will result in the withholdingof all state fire aid or state appropriation to which the Public Pension Plan may otherwise be entitled(Minn. Stat. § 356.219).

Form SID-llInvestment Disclosure Report FormEnd of Year Asset Allocation -12/31/11

Section 1

Public Pension Plan Name Paynesville Fire ReliefAssociation

Special Fund Market Value12/31/11

Cash (including all non-interest bearing accounts at banks, credit unions or thriftinstitutions)

Certificates ofDeposit (time deposits) $ 102,910Other interest bearing accounts (at banks, credit unions or thrifts including MoneyMarket accounts) $ 37,694

Treasury Bonds and Bills

Domestic Stock

International Stock

Corporate Bonds (domestic)

Government Bonds (domestic)

Corporate and Government Bonds (international)

. Venture Capital, Resource, or Real Estate Limited Partnerships

State Board oflnvestment (SBI) - Bond Market

State Board of Investment (SBI) - Common Stock

State Board of Investment (SBI) - Fixed Interest

State Board of Investment (SBI) - Growth Share

State Board oflnvestment (SBI) - Income Share

State Board oflnvestment (SBI) - International Share

State Board ofInvestment (SBI) - Money Market..

Mutual Funds and Exchange Traded Funds. List mutual funds (include Money ,.

Market mutual funds) and exchange traded funds held at 12/31111 below. ;;$ 441,7y+Other Describe here.

Other Describe here.

Total Investments at 12/31/11 (Must equal 4th quarter ending value) I···..{$' .•

List mutual funds and exchange traded funds belowTicker Symbol Fund/Account Name Mkt Value 12/31/11

CWGFX American Funds Capital World Gil F-I $ 59,176

DODFX Dodge & Cox International Stock $ 54,145

FLVIX Fidelity Advisor Leveraged Co Stk I $ 33,654

PAVAX ING Value Choice A $ 34,061

IGLAX ING Global Real Estate A $ 20,712

OIBAX Oppenheimer Internatiortall3ond A $ 52,458

PNRZX Prudential Jennison Natural Resources Z $ 47,281

PRUZX Prudential Jennison Utility Z $ 24,699

RYVPX Royce Value Plus Svc $ 20,690

RYTRX Royce Total Return Invmt $ 21,882

TPINX TEMPLETON GLOBAL BOND A $ 52,954

Form SID-ll

Market Values:·

First Quarter Beginning Value

First Quarter Ending Value

Second Quarter Ending Value

Third Quarter Ending Value

Fourth Quarter Ending Value

Cash Flows In

Municipal Contribution

State Aid

Supplemental Reimbursement

Other (Describe)

Other (Describe)

Choose Type

Choose Type

Cash Flows Out

Salary

Administrative Expense



Choose Type

Choose Type

Choose Type

Section 2

568,139 (December 31, 20lO/January 1,2011)----_--:.-____5_9.....5,0_3_0 (March 31,2011)

____..:..59~5~,6;.;.7..:..0(June 30, 2011)

_____5_11~,7_9..:..3(September 30,2011)

562,316 (December 31,2011)--------'--

Descril'tion, if needed. 3/18/2011 $ 8,372

Description, ifneeded. 11/8/2011 $ 24,838

Description, ifneeded. 5/6/2011 $ 2,000

MEMBER DUES/DONATIONS 6/1/2011 $ 280

IRS REFUND 3/2/2011 $ 100

Description, if needed. Choose Date Enter Amount

Description, ifneeded. Choose Date Enter Amount

Description, ifneeded. 1/26/2011 $ 799

Audit Fee 8/29/2011 $ 1,875

Safe Deposit Box 3/15/2011 $ 15

Printing & Supplies 6/1/2011 $ 142




Investment Management Fees

Investment Fees Monthly throughout Year 6/1/2011 $ 4,569

Choose Type DescriI'tion, ifneeded. Choose Date Enter Amount

Choose Type Description, if needed. Choose Date Enter Amount

Choose TYIJe Description, if needed. Choose Date Enter Amount

Choose Type Description, if needed. Choose Date Enter Amount

) FormRF'-ll

Reporting Form 2011Financial, Investment and Plan Information for the Year Ended 12/31/11

ReliefName: Paynesville Fire ReliefAssociation( Office use only

Please provide the address, email address and telephone numbers for the work location(s) atwhich you conduct relief association business. THIS CONTACT INFORMAnONIS PUBLIC; IT WILL BE AVAILABLE TO ANYONE ON REQUEST.

Relief Association Officers

Primary Contact

0 President

First Name: KEN Last Name: REIMAN

Address: 16021 OLD LAKE ROAD

City: PAYNESVILLE State: MN ZIP: 56362

Telephone: (320) 243-4396

Fax: (320) 243-7520

Email:

0 Secretary

First Name: GERALD Last Name: MEHR

Address: 620 ELM STREET


Telephone: (320) 243-3846

Fax: (320) 243-7520

Email: [email protected]

@ Treasurer

First Name: TOM Last Name: FORDYCE

Address: 28683 STATE HWY 55


Telephone: (320) 979-7881

Fax: (320) 243-7520

Email:

Ifapplicable, Secretary ofthe independent nonprofit firefighting corporation:

First Name: Last Name:

Address:

City: State: MN ZIP:

Telephone:

Fax:

Email:

FormRF-ll Paynesville Fire Relief Association

Section 1 - Plan Information

A. Fire Department Affiliation & Member CountsTIle Fire ReliefAssociation is associated with: (choose one)

@ A municipality which has a fire department.

o An independent nonprofit firefighting corporation which contracts with municipalities.

Enter the appropriate number:

26 Active members in the ReliefAssociation1-----1

4 Inactive members who are deferred1-----1

Other inactive members (medical and other leave)

30 Total Active +Inactive with Relief Association1===~

1-_-ILump sum service distributions

1-_-1Lump sum survivor distributions

1-_-ILump sum disability distributions

Monthly benefit recipients"--_....

(retired, disabled and survivor)

Years required for partial vesting in:

DFire Depaltment

DReHefAssociationo No@ Yes

B. Vestin & Ancillary Benefits (must be stated in bylaws)

Years required for full vesting in: Partial Vesting in Bylaws?

20 Fire Department1----1

5 Relief Association

1-__-1 I 50IMinimum age to receive retirement benefits

Amount Per

2,000enefit payable for each year of service

arne ofeach member, the beginning accountand ending account balance. You may use theyour own form.

s prepared this year. An actuarial valuation mustal valuation must be prepared each time you

fassets? (Amount ofbond need 110t exceed $500,000)

2.000.00.J.- ....y::..:e....;a;;,..r..;.;of;..;s....;erv;;..,,;;.ic.;.;;..Je

2,000.00 year of service

Short-term Disability

Long-teml Disability

Survivor Benefit

C. Plan Type & Information@ Defined Benefit Lump Sum B

0 Defined Benefit Monthly *0 Defined Benefit Monthly*/Lump Sum

*You must submit an ACTUARIAL VALUATlON ifone wabe prepared every other year. In addition, an updated actuarichange YOUl' benefit.

0 Defined Contribution A

A You must submit an ALLOCATION TABLE showing the nbalance for each account, allocations to each account for 2011allocation table provided by the Office of the State Auditor or

D. Bonding, Bylaws & Resolutions

@ Yes 0 No Is the Treasurer bonded for at least 10% 0

I $ 500,000 IAmount

0 Yes @ No Is the Secretary bonded?

I0 Yes @ No Did you amend your bylaws for 20l1'?

0 Yes @ No Did you modifY your benefits for 20 II ?

Form RF-ll Paynesville Fire Relief Association

Section 2 - Investments

General FundSpecial Fund

1$~~;a16[' . 15,92$1Amount 12/31/2011

Special Fund General Fund

List mutual funds and exchange traded funds below

Ticker Symbol Fund/Account Name

Total Investments at 12/31/2011

CWGFX American Funds Capital World Gil F-l 59,176

DODFX Dodge & Cox International Stock 54,145

FLVIX Fidelity Advisor Leveraged Co Stk I 33,654

PAVAX INO Value Choice A 34,061

IGLAX !NO Global Real Estate A 20,712

OlBAX Oppenheimer International Bond A 52,458

PNRZX Prudential Jennison Natural Resources Z 47,281 , II'/"

PRUZX Prudential Jennison Utility Z 24,699 V\'-'"

Cash (including all non-interest bearing accounts at banks, credit unions or thriftinstitutions)

Certificates of Deposit (time deposits)102,910 1,593

Other interest bearing accounts (at banks, credit unions or thrifts, including Money MarketAccounts) 37,694 14,335

Treasury Bonds & Bills

Domestic Stock

International Stock

Corporate Bonds (domestic)I

Government Bonds (domestic)

Corporate and Government Bonds (international)

Venture Capital, Resource or Real Estate Limited Partnerships

State Board of Investment (SBI) - Bond Market

State Board of Investment (SBI) - Common Stock

State Board of Investment (SBI) - Growth Share

State Board of Investment (SBI) - Income Share

State Board ofInvestment (SBI) - International Share

State Board of Investment (SBI) - Money Market

Mutual Funds and Exchange Traded Funds: List mutual funds (including Money Market . . .mutual funds) and exchanl!e traded funds held at 12/31/2011 below. . .421'i71~; 0,

Other

Other

.e. _,_. .;.

RYVPX Royce Value Plus Svc 20,690

RYTRX Royce Total Return Invrnt 21,882

TPINX Templeton Global Bond A 52,954

Contact for investment information

First Name: JEREMY Last Name: WILLNER,....;.;..::.:=:....:.:~-------------

Business Name MANAGED ASSET GROUP

Business Telephone ~(3;;;2:..:.0~)2;;;,.4:..:.3...:-3:..:.1~OO;,..... _

Business Email [email protected]~=~s...;;;;;;;;;;,;";;",,.;~ _

Form RF-ll Paynesville Fire Relief Association

Section 3 - Financial Information

LESS: Investment Management Fees

Revenues - 2011

Special Fund General Fund568,139[ 13,018 1

24,838.2,000

8,372280 1,940

16,868 19(50,883)

4,569 )

13,746200

1002

I -2,992[ 15;9051

Refund of IRS Detennination FeeRounding

Numerous

Other IncomeOther Income

Other Income

Outside DonationsOutside DonationsFundraisin Revenue

Outside Donations

A reciation/(De reciation in Fair Market Value (Realized or Unrealized)

Interest & DividendsMember ContributionslDuesMunici al/Inde endent Fire De artment Contributions

State 10% Su lemental ReimbursementState Fire Aid

B. Total Revenues

A. Total Net Assets as of December 31, 2010

. Benefit Expenditures - 2011

Service Pensions - RetireesService Pensions - MonthlyService Pensions - SurvivorsService Pensions - DisabledIllness or Short-term Disability

1. Total Benefit Expenditures 01

Administrative Expenditures - 2011

Salary 799Conventions & Meetings 1,001DuesTrainingProfessional Fees (Actuarial, Audit and Legal) 1,875

BondInvestment Performance Evaluation

~Fundraising Expenses 6,051Other Expenditures Safe Deposit Box 15Other Expenditures Printing & Supplies 142 1,059Other Expenditures Fire Fighting Equipment 4,668Other Expenditures Office Expenses 216Other ExpendituresOther Expenditures

2. Total AdministratIve ExpendItures 1 2..;.;...,83......1[ 12~,99_51

C. Total Expenditures (1 +2) I. ·2;83.(1.' 12,9951

D. Transfers (Can be madefrom General Fund to Special Fund only)

E. Total Net Assets at December 31,2011 (A + B - C +1- D)

IL......-__-l..[__-..\,)(\

1",-:__..............·~......:62=;~......1~r~·-,-__·=15~J92...-..;;.81

FormRF-ll Paynesville Fire Relief Association

Section 3 - Financial Information (Continued)

F. Selected Assets and Liabilities

S,pecia Fund General FundAccounts Receivable (Other than interest income receivable)Interest or Dividends ReceivableOther AssetsAccounts Payable or Other LiabilitiesAccrued Liability - 2011 >, "<;' ,"'"'>;it<',

G. Pension Payments; Defined Benefit Lump Sum aud Defined Contribution Plans

Regular SupplementalRetirement Benefit Benefit Total Benefit

Paynesville Fire Relief Association Total: 01 01 0

YearlyVesting Benefit Regular Supplemental

Name % Amount Retirement Benefit Benefit Total BenefitI I I (I

Date of Entry Sep. LOA Total YearsBenefit Birth Date Date andBIS (& months if offered) Return to Service Member? 0Type mmldd/yyyy mmlddlyyyy mmlddlyyyy (months) Years Months

Choose I I I I I J I IYearly

Vesting Benefit Regular SupplementalName % Amount Retirement Benefit Benefit Total Benefit

I 1 I 0

Date of Entry Sep. LOA Total YearsBenefit Birth Date Date andBIS (& months if offered) Return to Service Member? 0Type mmlddlyyyy mmldd/yyyy mmldd/yyyy (months) Years Months

Choose I I I I I l 1 ,rm

Benefit Type Codes Column DescriptionsA. Service Pension - Active, Fully Vested Date of Birth - Date of Birth of member. (mmldd/yyyy)B. Service Pension - Active, Partially Vested Entry & Separation Date - Dates member began and ended serviceC. Service Pension - Deferred, Fully Vested with fire department. (mmldd/yyyy)D. Service Pension - Deferred, Partially Vested Leaves of Absence and Breaks in Service - Cumulative time inE. Survivor Benefit leave status in months from fire department.

F. Illness, Short-tenn Disability Total Years - Years of service, less leaves of absence, with fireG. Long-tenn or Permanent Disabilitydepartment. Only use months if partial years are allowed in bylaws.

Vesting % - Percentage due to member per bylaw provisions.Yearly Benefit Amount - Amount per year ofservice used to computeregular benefit. Use bylaw amount at time of separation.Regular Retirement Benefit - Years (and months, if offered) xYearly Benefit x Vesting % +Deferred Interest, ifpaid.Supplemental- Benefit under Minn. Stat. § 424A.IO.Total Benefit - Regular + SupplementalReturn to Service Member?- Check Box ifmember returned toactive service and membership under the return-to-service law.

FormRF-ll

Section 4 - Signatures

Paynesville Fire Relief Association

Relief and Municipal Certification

We certify that to the best ofour knowledge and belief, the information presented in this report is true and accurate:

Signature: RELIEF ASSOCIATION PRESIDENT, SECRETARY, OR TREASURER DATE

KEN REIMAN PRESIDENTFirst Name Last Name Title

(320) 243-3714Signature: MUNICIPAL CLERK DATE BUSINESS TELEPHONE

RENEE ECKERLYFirst Name LastName

(If the reliefassociation is affiliated with an Independent Fireftghting Corporation serving more than one community, the municipal clerkjor thelargest community served by the fire department must sign.)

Auditor or Accountant Certification

Associations with Assets and Liabilities LESS THAN $200,000

An independent accountant may certifY the reporting form below or, if qualified as a certified public accountant, provide a separate attestation report byMarch 31, 2012.

Pursuant to Minn. Stat. § 69.051, subd. la(b), I have examined the preceding statement of revenues, expenditures/expenses and total net assets(including investment information) of the Special Fund and the General Fund, and hereby certifY this financial information is presented in conformitywith Minn. Stat. § 69.051, subd. la(a), except if noted on the signed, dated sheet attached.

First Name Last NameNAME OF AUDITOR IACCOUNTANT NAMEOFFffiM

Street Address City State Zip CodeADDRESS OF FIRM

Signature: AUDITOR I ACCOUNTANT DATE BUSINESS TELEPHONE

FAX NUMBER EMAIL ADDRESS

Associations with Assets or Liabilities ofAt Least $200,000

Pursuant to Minn. Stat. § 69.051, subd. 1(3), a certified public accountant, public accountant, or the state auditor must attest to, and submit, auditedfinancial statement of the relief association to the Office ofthe State Auditor. The Reporting Form and audit report must be submitted by June 30,

2012.

Form SC-12Schedule Form for Lump-Sum Pension Plans

Reporting Year 2012

Page 1

Detennination of Plan Liabilities and Required Municipal Contribution for 2013

Relief Association: Paynesville Fire ReliefAssociation County/ StearnsCounties:

Enter Annual benefit level in effect for 2012: 2,000

(If you change your benefit level before 12/3112012, the SC must be recalculated at the new level.)

2013

683,480

6/14/2012Please Enter Dates in tbis format·Active Member Information .Leaves of To end of2012 To end of2013Absence

Fire Department and Breaks Return toDate of Enlly in Service Years YearsBirth Dale Service Member of Accrued of Accrued

Name Status (months) ? Service Liability Service Liability

1 JIM FREILINGER Active 02/0111979 0 34 68,000 35 70,0002 GERALDMEHR Active 12/0111983 0 29 58,000 30 60,0003 ROGER TORBORG Active 09/0111985 0 27 54,000 28 56,0004 JACK WINTER Active 06/01/1987 0 26 52,000 27 54,0005 RON MERGEN Active 05/0111989 0 24 48,000 25 50,0006 ROBERT WANDER Active 12/0111994 0 18 33,960 19 36,8807 TOM FORDYCE Active 12/0111994 0 18 33,960 19 36,8808 MARK GUENTHER Active 03/0111995 0 18 33,960 19 36,880

9 MIKE STERN Active 03/0111995 0 18 33,960 19 36,880

10 ROBERT LIESTMAN Active 03/0111995 0 18 33,960 19 36,880

11 DAVID LANGE Active 08/0111998 0 14 23,680 15 26,080

12 KEN REIMAN Active 12/0111998 0 14 23,680 15 26,080

13 JAMIESOINE Active 04/0112000 0 13 21,400 14 23,680

14 LEN GILMORE Active , 04/0112000 0 13 21,400 14 23,680,

15 CATHY CHRISTINSEN Active 10/0112001 13 0 10 15,200 11 17,160

16 SHANE SCHMIDT Active 12/10/2003 11 0 8 11,520 9 13,320

17 DUSTIN VELDKAMP Active 10/0112004 0 8 11,520 9 13,320

18 ANDREW SOINE Active 10/12/2004 0 8 11,520 9 13,320

19 JON KULZER Active 12/13/2006 0 6 8200 7 9,840

20 ANTHONY WHElCHEL Active 04/09/2008 0 5 6,680 6 8,200

21 BRADLEY MEHLHOP Active 04/09/2008 0 5 6,680 6 8,200

22 MATHEW ELLEFSON Active 04/09/2008 0 5 6,680 6 8,200

23 MICHAEL HEMMESCH Active 11102/2009 0 3 3,800 4 5,200

24 RACHEL NELSON Active 11102/2009 0 3 3,800 4 5,200

25 DODI GREELEY Active 02/28/2011 0 2 2,480 3 3,800

26 TIMOTHY MILLER Active 02/28/2011 0 2 2,480 3 3,800

27 Choose Status 0 0 0







Form SC-12 Paynesville Fire Relief Association Page 2

Deferred Member Information (fully or partially vested)See separate instructions regarding completion of the below fields.

Please enter dates in this format: 6/14/2012

Total Deferred Member Liabilities 2012Total Deferred Member Liabilities 2013

65,70067,386

% 2007: 5.00 %% 2008: 0.00 %% 2009: 5.00 %

% 2010: 5.00 %

5.00 % 2011: 5.00 %

5.00 % 2012: 4.98 % +

(Check ifoffered.)

Months of

1,300 Service Are Paid

Deferred Interest PaidDOB:5Minimum Years Required to Vest:

Service Dates: Entry: 12/0111990 Separation: 11107/2005

LOAs and BIS (in months): Vesting %: 76

Return to Service Member? 0 (Check if applicable.) IfInterest is Paid, Choose Type:

Total Service: Years: 14 Months (ifpaid): OSA ROR up to 5%

2012 Estimated Liability: 18,534 Period Interest is Paid:

2013 Estimated Liability: 19,461 Status: Deferred Full YearsL..----~ -1

For ReliefROR up to 5%, OSA ROR up to 5% or Board Set ROR up to 5% enter interest rates below.

1981: % 1986: % 1991: % 1996: % 2001:

1982: % 1987: % 1992: % 1997: % 2002:

1983: % 1988: % 1993: % 1998: % 2003:

1984: % 1989: % 1994: % 1999: % 2004:

1985: % 1990: % 1995: % 2000: % 2005:

+Rate ofreturn is calculated usin the earnin s projected on Page 4 of this form. 2006:

1 Enter all information as it pertains to this member.1----_......

Benefit LevelMember Name: JOEL BURR at Separation:

% 2007: %% 2008: %

% 2009: %

% 2010: %

% 2011: %

% 2012: %+

'5\

Months of

Service Are Paid

2006:

(Check ifoffered.)

2,000

Deferred Interest PaidDOB:5

KELLY MOHR

Minimum Years Required to Vest:

+Rate ofreturn is calculated using the earnings rojected on Page 4 ofthis form.

Service Dates: Entry: 12/0111990 Separation: 09/08/2009

LOAs and BIS (in months): 28 Vesting %: 84

Return to Service Member? 0 (Check if applicable.) IfInterest is Paid, Choose Type:

Total Service: Years: 16 Months (ifpaid): 5 Choose Type


2013 Estimated Liability: 27,580 Status: Deferred Choose Interest Pa ment Period


1981: % 1986: % 1991: % 1996: % 2001:

1982: % 1987: % 1992: % 1997: % 2002:

1983: % 1988: % 1993: % 1998: % 2003:

1984: % 1989: % 1994: % 1999: % 2004:

1985: % 1990: % 1995: % 2000: % 2005:

Member Name:

2 Enter all information as it pertains to this member.f-----..... Benefit Level

at Separation:

Form SC-12 Paynesville Fire Relief Association Page 2 - Cont.

% 2007: 5.00 %

% 2008: 0.00 %5.00 % 2009: 5.00 %5.00 % 2010: 5.00 %5.00 % 2011: 5.00 %

5.00 % 2012: 4.98 % +2006:

Months of


Deferred Interest Paid(Check ifoffered.)

DOB:5

rojected on Page 4 ofthis fonn.

Minimum Years Required to Vest:

Service Dates: Entry: 12/22/1990 Separation: 01102/2003

LOAs and BIS (in months): Vesting %: 68

Return to Service Member? 0 (Check if applicable.) Ifinterest is Paid, Choose Type:Total Service: Years: 12 Months (if paid): ReliefROR up to 5%


2013 Estimated Liability: 15,945 Status: Deferred Full Period'----~-------_----J


1981: % 1986: % 1991: % 1996: % 2001:

1982: % 1987: % 1992: % 1997: % 2002:

1983: % 1988: % 1993: % 1998: % 2003:

1984: % 1989: % 1994: % 1999: % 2004:

1985: % 1990: % 1995: % 2000: % 2005:

3 Enter all information as it pertains to this member.I-----...J

Benefit LevelMember Name: SHAWN EVANS at Separation:

% 2007: %

% 2008: %

% 2009: %% 2010: %

% 2011: %

% 2012: %+2006:

Months of


Deferred Interest Paid(Check ifoffered.)

DOB:5Minimum Years Required to Vest:

Service Dates: Entry: 12/10/2003 Separation: 07/0112009

LOAs and BIS (in months): 0 Vesting %: 40Return to Service Member? 0 (Check if applicable.) Ifinterest is Paid, Choose Type:

Total Service: Years: 5 Months (if paid): 6 Choose Type


2013 Estimated Liability: 4,400 Status: Deferred Choose Interest Pa ment Period


1981: % 1986: % 1991: % 1996: % 2001:

1982: % 1987: % 1992: % 1997: % 2002:

1983: % 1988: % 1993: % 1998: % 2003:

1984: % 1989: % 1994: % 1999: % 2004:

1985: % 1990: % 1995: % 2000: % 2005:

4 Enter all information as it pertains to this member.1-----..... Benefit Level

Member Name: PAUL CLARK at Separation:

Form SC-12 Paynesville Fire Relief Association Page 3

Unpaid InstallmentsEnter here the name of each member who has been paid portions ofhis pension benefit and who still hasoutstanding liabilities. Enter dates in this fonnat: 6/14/2012

Name StatusBirthDate

EntryDate

SeparationDate

AmountPreviously Paid

2012 EstimatedLiability

2013 EstimatedLiability

Unpaid Installment

Unpaid Installment

Unpaid Installment

Unpaid Installment

Unpaid Installment

Unpaid Installment

Unpaid Installment

Unpaid Installment

Unpaid Installment

Unpaid Installment

Totals ____Ol ----I°~

Form SC-12

Calculation of Normal Cost

Paynesville Fire Relief Association

2012 2013

Page 4

Total Active Member Liabilities

Total Deferred Member Liabilities

Total Unpaid Installments

Grand Total Special Fund Liability

Normal Cost (Cell B minus Cell A)

630,520 683,480

65,700 67,386

0 0

A. 696,220 B. 750,866

c. 54,6461

Projection of Net Assets for Year Ending December 31, 2012Special Fund Assets at December 31,2011 (RF-ll ending assets)

Projected Income for 2012

State Fire Aid (2011 aid may be increased by up to 3.5%)

Municipal/Independent Fire Dept. Contributions

Interest I Dividends

Appreciation / (Depreciation)

Member Dues (Ifdeposited in Special Fund)

Other Revenues

Total Projected Income for 2012 (Add Lines D through I)

Projected Expenses for 2012

Service Pensions

Member Names:I-----------------l

D. f-_-=2:..:;,5.l.:.,7,;;.;07:.....jE. 8,3721----.;..:.;;..;--1F. l--_-=2;;.;,0z.;;.,0,;;.;00~

G. 8,000I---"""""-'-i

H. l--__...:c15:....:0~

1. L-- -'

1.1 _

2[__6,-,2,~22.;....91

~~ 1---3-,0-00-1Other Benefits

Administrative Expenses

Total Projected Expenses for 2012 (Add Lines J through L)

Projected Net Assets at December 31, 2012 (Add Lines 1 and 2, subtract Line 3)

3 C_---.,;;;.z.3,0,;;.;;,0.;;...OI4 [ 621,545 I

Projection of Surplus or (Deficit) as of December 31, 2012

Projected Assets (Line 4)

2012 Accrued Liability (Page 4, cell A)Surplus or (Deficit) (Line 5 minus Line 6)

51--_6~2~1'",:-54,;.;;5~61--_6~9~6,~22,",,0::-i7L...--_..lo.,;('7~4,~67.:..;;5~)

Form SC-12 Paynesville Fire Relief Association Page 4 - Cont.

Calculation ofRequired Contribution

Deficit Information· Original Deficit Information· AdjustedAmount Retired Amount Retired Amount Left

Year Incurred OriJdnai Amount as of 12/31/2011 Original Amount as of 12/31/2012 to Retire 1I1120132003 0 02004 0 02005 0 02006 0 02007 0 02008 0 02009 112,730 112,7302010 0 02011 0 02012 74,675 74,675

Totals 112,730 112,730 74,675 74,675

8 54,646I 2,831 I 2,930

10 7,468II 012 25,70713 15014 31,077

e, zero is displayed.) 15 8,110

Normal Cost (Page 4, cell C)

Projected Administrative Expense Enter 2011 Admin Exp here: 9Amortization of Deficit (Total ofOriginal Amount column x 0.10)10% of Surplus (Line 7 x 0.10)State Fire AidMember Dues5% of Projected Assets at December 31,2012 (Line 4 x 0.05)

Required Contribution (Add Lines 8, 9and 10, subtract Lines II, 12, 13 and 14. IfnegativThe required contribution must be made during 2013.

Form SC-12 PaynesviJIe Fire Relief Association PageS

This Schedule Form must be fUlly completed, certified by the relief association officers, forwarded to the municipal clerk/independent secretary on or before August1,2012 and submitted to the Office of the State Auditor to be eligible for State Fire Aid.

Officer Certification

We, the officers of the Paynesville Fire ReliefAssociation, certify that this Schedule Form was prepared under Minn. Stat. § 69.772 and that the annual benefit level wasestablished according to the average amount ofavailable financing.

We further certify that based on the financial requirements of the ReliefAssociation's Special Fund for the 2012 calendar year, the required 2013 contribution is $8,110. Ifthebylaws ofthe Relief Association changed in 2012, we have attached a copy of the amendment or updated bylaws. We have also enclosed a copy of the municipallboardratification ofthis amendment if required under Minn. Stat. § 69.772, subd. 6.

KEN REIMANSignature ofPresident Name Date

GERALD MEHRSignature of Secretary Name Date

TOM FORDYCESignature ofTreasurer Name Date

Municipal Clerk I Independent Secretary Certification

firefighting corporation. I received on

I am the municipal clerk of PAYNESVILLE independent nonprofit---------------I have reviewed Line 15 ofthe Schedule Form. IfLine 15 shows a required contribution, I certify that I will advise the governing municipal body or the independent nonprofitfrrefighting corporation of any required contribution at its next regularly scheduled meeting.

Signature ofMunicipal Clerk/Secretary ofindependent nonprofitfirefighting corporation

(320) 243-3714Business Telephone

RENEEName

ECKERLYDate

Please provide the telephone numbers for the work location(s) at which you conduct relief association business.THIS CONTACT INFORMATION IS PUBLIC; IT WILL BE AVAILABLE TO ANYONE ON REQUEST.

Please retain a copy ofthis Schedule Form for your records, upload the form to the Office of the State Auditor's website, and electronically sign the form. Alternatively, a signed paper copy canbe submitted to: Office of the State Auditor, Pension Division, 525 Park Street, Suite 500, Saint Paul, MN 55103. Fax: 651-282-5298. Telephone: 651-282-6110.



Committee/Council Meeting Date: June 27, 2012



Item Number: VI - B

ITEM DESCRIPTION:

Prepared by: Staff

COMMENTS:

Irrigation Pump Station

$6,198.75$8,983.65

Ron Mergen will give a verbal report. Please review the attached quotes to replace the VariableFrequency Drive (VFD):

Schwab Vollhaber Lubratt Service Corp (SLV)Connelly Industrial Electronics, Inc. (CIE)

The cost to repair the station would be $4,500.00, but the contractor is not confident it will work.Xcel Energy will pay 60% up to $6,000.00 for a replacement.



Motion to approve the quote from Schwab Vollhaber Lubratt Service Corp (SLV) in the amount of$6,198.75 plus installation to replace the Variable Frequency Drive (VFD).

:"';::~-l."'::''':.\'7<!~,,;::~:,y,;,;.'~~'.'tf ~i';~":'..~"{;·-- :'..

.. :,:,;..;~-~~~,,{~{~.\ ' --~:.~{~

. ':<,-"~;"'-'

Schwab Vollhaber Lubratt Service Corp4600 Churchill StreetSt Paul MN 55126

Page 1/1Quote QU0131144

Date 6/18/2012

Bill To: PAYNESVILLE, CITY OF221 WASHBURN AVEPAYNESVILLE MN 56362

Ship To: PAYNESVILLE, CITY OF221 WASHBURN AVEPAYNESVILLE MN 56362

·SubtotalMiseTax

FreightTrade Discount

Total

$5,800.00$0.00

$398.75$0.00$0.00

$6,198.75

--~-- - -' -~- .: - ---~--=- -----~-~~~--~~-: ~ - ~---.- - - ~ _.: - - --.- - I ~ ""

- - -- - __ i - - ~ _ _

~~~~:~\~~7~~:~~~~~~~,,:!g~:::~~~~i~~~~i~~~~?iIE11~~~~~tJ~El~f~~t~1}~:i~~~J~~~~~t;.L1l!-;-tj~t~::~~~_~:·:ijCONNEllY INDUSTRIAL ElEefRONICS, IINCORPORAT/ED

June 8, 2012

Paynesville, City ofRon Mergen221 Washburn AvenuePaynesville, MN 56362

RE: VFD Project

Dear Ron:

Thank you for·the·opporturlitYtoprovideCity ofPaynesvilie with aquQte.for the VFDreplacement proj~ct. .

$8,983~65 each. Net Price

Qty 1, AB 100HP ND, 75HP RD, 480VAC, 3Phase, HIM Enhanced LCD DisplayModll1e,and ConduitEntry Kit

Note: the above pricedoef[;not inf;lude installation services billed at our normal rate.$90.00Ihrandmileage at $.5Slmile. Also, Electrician Services to wire and mount theVFDare not incll,lded in theab()veprice as well.

Ifyou have any questions, please feel free to contact me at 651-773-5422 office or651-247-0299 cell.

Respectful.IY

S..Ubmitt.e.d., ~''''~'. ....../. d . / '. ...--"".....'"f'~~' ",/'/

""1f.~ /'

Robert R Connelly <--.."..,..._--

Escalation:Freight:Sfllitl]'p:Taxes:Pellvery:Terms:

Price iSfirm 90 :daysfrQrildateofPropos.a1.(X) ?#cei~FOB.F~ct~ry{) Fr~1gh~·idi(),#edto j6bsite. (X}No freight included.Asstated'in'abOVeproposaI. '. .'.'.... .. .'

,~,~Llr~tI~r~~~~J:~~~~;f>J)ED.NET 30 day terms. - ,

THE SELLER RESERVES THE RIGHT TO REVIEW AND REVISE THIS PROPOSAL AFTER 30 DAYSFROM ISSUANCE

City ofPaynesvilleRon Mergen

I accept this proposal and all terms thereof:

Accepted: _

I)ate: ~ ~~

Title:-------------PO No,: _ {\

6845 -20THAVE. S., STE. 140, CENTERVILLE,MN 55038 0 PHONE (651) 773-5422 0 FAX(651) 773-542:3 0 TOLL:FREE 1(866) 222-0763






Item Number: VI - C

ITEM DESCRIPTION:

Prepared by: Staff

COMMENTS:

Ranch View Plat - Concept Plan

Please review the attached Concept Plan for Ranch View as submitted by Stang Holdings, LLC,Bruce and Bernie Stang. They wish to plat this recently annexed property located off of MinnieSt. into three lots. The far north lot will remain zoned Ag and the two other to be re-zonedIndustrial. The middle lot will be jointed to his existing lot directly to the east so that they canexpand their current facility. The Planning Commission has reviewed this and recommendsapproval.



Motion to approve the Ranch View Concept Plan.

CITY OF PAYNESVILLECONCEPT PLAN APPLICATION

221 Washburne Ave. - Paynesville, MN 56362Phone: 320-243-37'14 ~, Fax: 320-243..37'13

Name of Subdivision: l( v."f'..<J..-- V\ (LV

. ' . ' , ,." , ~jUJ\.iiL ~ ~\ llc:fL.,List All Property owners:~~lIj":::, \.1-C ..~

Contact Person:~~

Address: I'rB":>~\J& ')f?(\JL.."%w~\I\~Telephone No.:,":9DZS::O-'73Z,2:> Parcel No.: 2i1J. 15Ll %2.., OCJOo

Legal Description: Lot: ??eO ~BIOCk: Addition:

Number of Lots:

3Proposed Zone:

Z -7-

Concept Plan Must Include:o Concept Plan shall contain all information found in Section 12.06 Concept Plan Review, Subdivision 1 and

Subdivision 2 found in the attached Ordinance No. 86, 2nd Series. ' ,o Submit application with one (1) reproducible 11 "x17" copy of the Concept Plan at least ten (10) business days

prior to the Regular Planning Commission meeting.

5-29'-/2-

Date

-------_.._-----------------------------------------------------------_.._----_......_---------------------------------------------------------------_...

For Office Use Only.

10/25/2005

f;--" rr~-"' 0~" ;r-0~"!::-~..··1::~~~\! fJ\ U::-::T Il,,,, 'r::" 'I;',. . ," ~\ \

Date Application Received In ~tie~~t=:-'..:':" ..•....~ . . ... . -; i; \'

(Stamp) C 1,,(;, .\.1., 11(;\' MAY 29 2012 \j'}oIJYJ e\1 \\, I':"',

l 1.\ L~. . _.1

\ 1.--------------.;t'

>:: ... :!.'¥S4 _ ...~...•

__--9',=-----------------*"'-__ ~LEGAL DESCRIPTION

Tract 4f·l......d l)'ing and .bebig in the County ofSteams, State of Minnesota,descri~~(t_ foDows,"to-wit: .

That p~:~ttheSout.beast~J." ofSection 9, Township 122 North,Range ~~;;"est,~~6e$. ~~~rly 0'~eNorth IJrandl.9tthe Cl"ow RiverandneJ~~~.:::.. 0.f ..;Jb1e~.am..·Nonherlyat an augle of89°33'00" with theSouth ~;:~,s~d SoiJth~.~r, as measured from West to North,from alP~if.l.tth~reonc1ist'aQt 1~341~75 feet West of the Southeast comer ofsaidSeilQQ.'_East.of", west58 r.ods ofthe .Southeast.Quarter QfSectioq,9.; ....ownsbip 122, Range 32, Stearns County, Minnesota.

j •

Snbieettoe8sements of record.

conw1mg 8.77 acres, more or less.

. ,

, .

.'.

. .. • .;4i

· REQUEST FOR COMMITTEE/COUNCIL ACTION



Agenda Section: Old Business


Item Number: VII-A

ITEM DESCRIPTION: Police Chief Position

Prepared by: Staff

COMMENTS:

Renee Eckerly will give a verbal report.








Item Number: VII - B

ITEM DESCRIPTION: Emergency Management Director

Prepared by: Staff

COMMENTS:

Renee Eckerly will give a verbal report. No applications were received.








Item Number: VII - C

ITEM DESCRIPTION: Hwy. 23

Prepared by: Staff

COMMENTS:

Chuck DeWolf will give a verbal report.








Item Number: VII - 0

ITEM DESCRIPTION: Opportunity Park Drive Improvement Project

Prepared by: Staff

COMMENTS:

Chuck DeWolf will give a verbal report.








Item Number: VII-E

ITEM DESCRIPTION:

Prepared by: Staff

COMMENTS:

Wastewater Re-scoping Project

Ron Mergen &Chuck DeWolf will give a verbal report. Please review the attached SignificantIndustrial User Agreements between Master Mark Plastics and the City of Paynesville andAMPI and the City of Paynesville.



Motion to approve the Significant Industrial User Agreements (SIU) between Master MarkPlastics and the City of Paynesville and AMPI and the City of Paynesville.

SIGNIFICANT INDUSTRIAL USER AGREEMENTDISCHARGE TO THE

PAYNESVILLE, MINNESOTAMUNICIPAL WASTEWATER TREATMENT FACILITIES

Agreement No.: Master Mark-1

This Agreement entered into by and between Master Mark Plastics, a Significant Industrial User (Sill), of theWastewater Treatment System of the City ofPaynesville, a municipal corporation, and the City ofPaynesville,allows the discharge of industrial wastes to the Paynesville, Minnesota Municipal Wastewater TreatmentFacilities and collection system.

Effluent limitations, monitoring requirements, general conditions and other specific conditions are set forth inAttachment A and Attachment B of this agreement.

Effective Date: _ day of "2012

Expiration Date:_ day of , 2017 (5 years after the Effective Date)

Issued By:

Date:

Paynesville City CouncilCity of Paynesville, Minnesota

This permit issued in accordance with the Paynesville Code of Ordinances, Use and Rate Regulations forMunicipal Wastewater Treatment Facilities.

Attachment A contains pages 1 through 5.Attachment B contains page 6.

This permit supersedes any prior agreement.

ATTACHMENT ATO

INDUSTRIAL USER AGREEMENTPAYNESVaLE,M~SOTA

A. Initial Permit Application Data.

1. Company Name:

Mailing Address:

Address of Premises:

Contact Name:

Title:

Phone:

Master Mark Plastics

210 Ampe Drive, Paynesville MN 56362

210 Ampe Drive, Paynesville MN 56362

Nick Demuth

President

320-243-7318

2. Standard Industrial Classification Code --=2~39"-,2,,,-- _

3. Product

Master Mark recycles plastic into plastic lumber products at the Paynesville location.

4. Description of Pretreatment Provided, if any:

None

5. Hours of operation during peak day .....::.24~h.><:ou""r"'_s _

6. Number of days of operation per week ---<7 _

7. Describe any batch or periodic discharges:

All discharge is continuous.

8. Describe the source and volume of any non-contact cooling water to be discharged to themunicipal treatment facility.

Not Applicable

B. Permit Effluent Limitations and Monitoring Requirements

SID

1. The sm is authorized to discharge process wastewater in compliance with the limits andmonitoring requirements specified in this agreement beginning and expiring______. No discharge may take place under this agreement after the aboveexpiration date. In order to receive authorization to discharge after the above expiration date,the user shall file an agreement application with the City of Paynesville. The agreementapplication shall be made 180 days prior to the expiration date of the user's existingagreement.

1

2. Discharge limits and monitoring requirements for flow, BOD and TSS are listed in Table 1.

Table 1- Dischare:e Limits and monitorine: Requirements for Flow, BOD, and TSS

Monitoring Requirements

Maximum Month MinimumMaximum Day Daily Discharge Measurement

Effluent Characteristic Discharge Limit Limit Frequency Sample Type

Flow 20,000 gpd 15,000 gpd Continuous Recorded

BOD 450lbs/day 4001b/day 4 Times a CompositeMonth

TSS 450lbs/day 400lb/day Concurrent Compositewith BODSamples

pH See Paynesville See Paynesville Continuous RecordedOrdinance Ordinance

3. In addition, the sm shall comply with the requirements stated in the Paynesville Ordinance(as amended) for Use and Rate Regulations for Municipal Wastewater Treatment Facilitiesand also comply with all State or Federal regulations regarding discharge to municipalwastewater treatment facilities, as the same may be amended from time to time.

4. Samples shall be collected in compliance with the monitoring requirements specified in thisagreement and shall be taken at the following location(s):

At the Master Mark site, prior to discharge to the municipal wastewater system.

sm

5.

6.

7.

The City of Paynesville, upon detection of any violations of the limits or monitoringrequirements specified herein, shall notify Master Mark within 24 hours after the test resultsare obtained. The City may also re-sample for the violated parameter within 30 days.Detection shall include findings resulting from all required and discretionary samples ormonitoring by the City and any other self-monitoring of regulated parameters as described inSection B of the Industrial User Discharge Agreement.

Master Mark shall be responsible for continuously monitoring waste flow from its facility.Master Mark shall be allowed to monitor waste flow by reading its total daily discharge asrecorded by the flow monitoring equipment. Master Mark shall also be responsible forfurnishing, installing and maintaining composite sampling equipment for monitoring ofwasteflow from its facility.

According to the monitoring requirements in Table 1 and at any other times at the City'sdiscretion, a 24-hour composite sample shall be collected for analysis by an independenttesting laboratory for BOD and TSS analysis. The composite sample shall be collected withan automatic sampler operating in conjunction with a flow meter by either of two approvedmethods: (1) by withdrawing samples ofequal volume in response to incremental changes intotalizer flow, or (2) by withdrawing separate samples every hour for 24-hours and afterwards

2

preparing a composite made up of the 24 samples, the volume of each a constant proportionof the waste flow at the time of withdrawal, as measured by the flow meter.

8. The independent testing laboratory shall be certified by the State ofMinnesota. The choice ofthe independent testing lab shall be by mutual agreement between Master Mark and the City.Instructions to the testing laboratory will be that both Master Mark and the City receive copiesof the results. Testing shall be conducted four days per month unless a different frequency isset by mutual agreement between Master Mark and the City. All costs involved in the testingdescribed herein shall be billed to Master Mark. Any additional testing requested by the Cityshall be paid by the City.

9. Master Mark shall be responsible for calibrating and performing maintenance on its analyticalinstruments as required to insure accuracy of measurements. In the event that flowmonitoring equipment and/or sampling equipment must be out of service for any length oftime, Master Mark shall inform the City of the condition and the estimated duration of nonservice. During the period of non-service, wastewater flows may be estimated based on Citywater supply meters. If the period of non-service is estimated to exceed 15 days, or willprevent the City from collecting the required number of monthly samples, arrangements shallbe made by the company to install portable sampling equipment. If sample data is notavailable, billing shall be based on usage estimates and the previous six months of sampleresults.

10. Master Mark shall grant to the City access to the industry's sampling station at the City'srequest for the purpose of inspection or data collection. The City shall also have authority toenter the industry's sampling station at any time for purposes of installation of its ownmonitoring equipment.

11. The average daily discharge shall be calculated based on a month average basis. The averageconcentration of all the composite samples collected by the City and analyzed during eachmonth by the independent testing laboratory, and the average daily flow for the month shall beutilized to calculate the monthly average daily discharge for the given month.

12. Rate structure shall be on the basis of Attachment B.

C. Submission of Reports and Records

sm

1.

2.

The sm shall notify the City of Paynesville, in writing, of any discharge of a substance thatwould, if otherwise disposed of, be considered a hazardous waste under 40 CPR Part 261.Notification shall take place at least 30 days before the date of discharge and conform to 40CFR Section 403.l2(p). No discharge of any hazardous wastes may take place without priorapproval of the City of Paynesville.

Master Mark shall submit to the City once a month a report containing daily records ofwastewater flow. The report shall be submitted to the City no later than the 14th day of eachmonth unless Master Mark makes other arrangements satisfactory to the City for reporting.

3

D. General Conditions

1. Industrial wastewater discharges from a Sill shall be in accordance with applicable provisionsof the Paynesville Code of Ordinances and this Agreement.

2. The Sill shall not knowingly make a false statement, representation or certification in anyrecord, report, or plan required to be submitted to the City of Paynesville under the provisionsof the Paynesville Code of Ordinances, or this Agreement.

3. The Sill shall maintain and retain plant records relating to wastewater discharge as specifiedby the City for a minimum of three years.

4. The Sill shall notify the City ofPaynesville immediately of any slug discharge as defined inthe Paynesville Code of Ordinances, or any other discharge of a substance or wastewater inviolation of the Paynesville Code of Ordinances or this Agreement.

5. The Sill shall install, operate, and maintain sampling and monitoring devices in properworking order at its own expense.

6. In the event of an industrial user's noncompliance, the user shall be subject to penalties,surcharge fees, as well as the rules and regulations relating to municipal utilities, inaccordance with the Paynesville City Code, in addition to any penalties which may beimposed pursuant to this agreement.

7. Any significant change in volume or characteristics of industrial wastewater introduced intothe Paynesville Wastewater Treatment Facilities shall be immediately reported to theWastewater Superintendent or City Administrator. Significant changes shall be defined asany changes which will result in the industry becoming out of compliance with the permittedvalues listed in Section B of this agreement. In such cases this agreement may be subject tomodification.

8. Notice of any anticipated increase in pollutants contributed shall be given to the City 30 daysin advance of such increase, in the form of a request for a new agreement.

9. Paynesville assumes as part of its governmental function, the handling of all sewage,including industrial and sanitary sewage, from Master Mark's existing plant in Paynesville fora period of five (5) years. Paynesville agrees to handle up to 15,000 gallons per day of flowhaving an organic loading of up to 400 pounds BODS per day, as defined in Paynesville'sSewer Use Ordinance. '

10. The City agrees that the Master Mark's discharge limits, as defined in Table 1, shall not bereduced as long as the City owns and has an operational wastewater treatment facility and aslong as Master Mark is operational, utilizing the capacity and in compliance with thisagreement and the Paynesville City Code.

11. The terms and conditions of the agreement may be subject to modifications by the City ofPaynesville during the term of the permit as limitations or requirements are modified by theCity or regulating agency. The user shall be informed of any proposed changes in thisagreement at least 30 days prior to the effective date ofchange. Master Mark may request that

Sill 4

a transition period for implementation of the agreement limitations or requirements beestablished. Such request must be made in writing prior to the effective date of change.

12. The City of Paynesville shall not be obligated to accept discharges which contain pollutantswhich will cause structural damage to the system or waste which will cause obstruction to theflow.

13. The Rate Schedule is subject to annual review and may be adjusted through Paynesville'sSewer Use Ordinance.

14. Upon execution, this Agreement shall become attached to Paynesville's Sewer UseOrdinance.

15. All notices, requests, demands and other communication hereunder shall be in writing andshall be deemed to have been given if and when delivered or mailed to:

sm

a.

b.

City of PaynesvilleAttn: City Administrator221 Washburne AvenuePaynesville, MN 56362

Master Mark Plastics, Inc.Attn: President210 Ampe DrivePaynesville MN 56362

5

ATTACHMENT BTO

SIGNIFICANT INDUSTRIAL USER AGREEMENTRATE SCHEDULE

PAYNESV~LE,MINNESOTA

Rate Schedule

1. The SID shall pay 8% of the actual operating cost to operate the preaeration pond blowers ascompensation for discharging 400 pounds per day of BOD to the WWTP and a surcharge for BODin excess of 400 pounds per day.

a. Surcharge: If the SID exceeds average monthly daily load of 400 pounds per day of BOD,the SID shall pay $7.30 per pound of BOD for each excess pound.

2. The SID shall pay $2.47 per 1,000 gallons discharged to the City of Paynesville up to 15,000gallons per day of flow and a surcharge for flow beyond 15,000 gallons per day.

a. Surcharge: If the SID exceeds average monthly daily flow of 15,000 gallons per day, theSID shall pay $10.00 per 1,000 gallons per day of excess flow.

3. The Rate Schedule is subject to annual review and may be adjusted through Paynesville's SewerUse Ordinance. No surcharge shall be imposed if caused by a force majeure, unless the dischargeemitted by Master Mark causing the surcharge could have been reasonably prevented by MasterMark.

SID 6

Master Mark Plastics, Inc.

By: _ By: _

Its: President Its:, ~S~ec~re~t~ar~y- _

STATE OF MINNESOTA )) ss

COUNTY OF STEARNS )

The foregoing instrument was acknowledged before me this _ day of 2012 by _and , its President and Secretary of Master Mark Plastics

Notary Public

City of Paynesville

By: _

Jeff Thompson

Its:. ~M~a'.ty~or'__ _


COUNTY OF STEARNS )

By: - _

Renee Eckerly

Its: __~C~l~·tyJ..2..!.A~d~lD1~·n""i"'-'str~a~to~r _

The foregoing instrument was acknowledged before me this _ day of 2012 byand , its Mayor and City Administrator of the City of Paynesville.

Notary Public

SID 7

SIGNIFICANT INDUSTRIAL USER AGREEMENTDISCHARGE TO THE

PAYNESVaLE,MINNESOTAMUNICIPAL WASTEWATER TREATMENT FACaITIES

Agreement No.: AMPI-1

This Agreement entered into by and between Associated Milk Producers, Inc., (AMP!), a Significant IndustrialUser (Sill), of the Wastewater Treatment System of the City ofPaynesville, a municipal corporation, and theCity of Paynesville, allows the discharge of industrial wastes to the Paynesville, Minnesota MunicipalWastewater Treatment Facilities and collection system.

Effluent limitations, monitoring requirements, general conditions and other specific conditions are set forth inAttachment A and Attachment B of this agreement.

Effective Date: _ day of , 2012

Expiration Date:_ day of , 2017 (5 years after the Effective Date)

Issued By:

Date:

Paynesville City CouncilCity of Paynesville, Minnesota

This permit issued in accordance with the Paynesville Code of Ordinances, Use and Rate Regulations forMunicipal Wastewater Treatment Facilities.

Attachment A contains pages 1 through 5.Attachment B contains page 6.

This permit supersedes any prior agreement.

ATTACHMENT ATO

INDUSTRIAL USER AGREEMENTPAYNESVaLE,M~SOTA

A. Initial Permit Application Data.

1. Company Name:

Mailing Address:

Address of Premises:

Contact Name:

Title:

Phone:

Associated Milk Producers Inc. (AMPI)

315 North Broadway, PO Box 455, New Ulm, MN 56073

200 W. Railroad, Paynesville, MN 56362

MattOuade

Division Manager

320-243-3794

2. Standard Industrial Classification Code ---"2""0""23:<.>.,--"5;1"""'43><.-- _

3. Product

AMPI produces cheese and dry milk products at the Paynesville location.

4. Description of Pretreatment Provided, if any:

None

5. Hours of operation during peak day -=24..:....ooh=ou~r'-"s _

6. Number of days of operation per week _7'-- _

7. Describe any batch or periodic discharges:

All discharge is continuous.

8. Describe the source and volume of any non-contact cooling water to be discharged to themunicipal treatment facility.

Not Applicable

B. Permit Effluent Limitations and Monitoring Requirements

SID

1. The SID is authorized to discharge process wastewater in compliance with the limits andmonitoring requirements specified in this agreement beginning and expiring______. No discharge may take place under this agreement after the aboveexpiration date. In order to receive authorization to discharge after the above expiration date,the user shall file an agreement application with the City of Paynesville. The agreementapplication shall be made 180 days prior to the expiration date of the user's existingagreement.

1

2. Discharge limits and monitoring requirements for flow, BOD and TSS are listed in Table I.

Table 1- Dischar2e Limits and monitorin2 Requirements for Flow, BOD. and TSS

Monitoring Requirements

Maximum Month MinimumMaximum Day Daily Discharge Measurement

Effluent Characteristic Discharge Limit Limit Frequency Sample Type

Flow 475,000 gpd 400,000 gpd Continuous Recorded

BOD 4,400 lbs/day 4,000 lb/day 4 Times a Composite(2000 kg/day) ( 1818 kg/day) Week

TSS Monitor Only Monitor Only Concurrent Compositewith BODSamples

pH See Paynesville See Paynesville Continuous RecordedOrdinance Ordinance

3. In addition, the sm shall comply with the requirements stated in the Paynesville Ordinance(as amended) for Use and Rate Regulations for Municipal Wastewater Treatment Facilitiesand also comply with all State or Federal regulations regarding discharge to municipalwastewater treatment facilities, as the same may be amended from time to time.

4. Samples shall be collected in compliance with the monitoring requirements specified in thisagreement and shall be taken at the following location(s):

At the AMPI site, prior to discharge to the municipal wastewater system.

Sill

5.

6.

7.

The City of Paynesville, upon detection of any violations of the limits or monitoringrequirements specified herein, shall notify AMPI within 24 hours after the test results areobtained. The City may also re-sample for the violated parameter within 30 days. Detectionshall include findings resulting from all required and discretionary samples or monitoring bythe City and any other self-monitoring of regulated parameters as described in Section B ofthe Industrial User Discharge Agreement.

AMPI shall be responsible for continuously monitoring waste flow from its facility. AMPIshall be allowed to monitor waste flow by reading its total daily discharge as recorded by theflow monitoring equipment. AMPI shall also be responsible for furnishing, installing andmaintaining composite sampling equipment for monitoring of waste flow from its facility.

According to the monitoring requirements in Table I and at any other times at the City'sdiscretion, a 24-hour composite sample shall be collected for analysis by an independenttesting laboratory for BOD and TSS analysis. The composite sample shall be collected withan automatic sampler operating in conjunction with a flow meter by either of two approvedmethods: (1) by withdrawing samples ofequal volume in response to incremental changes intotalizer flow, or (2) by withdrawing separate samples every hour for 24-hours and afterwards

2

preparing a composite made up of the 24 samples, the volume of each a constant proportionof the waste flow at the time of withdrawal, as measured by the flow meter.

8. The independent testing laboratory shall be certified by the State ofMinnesota. The choice ofthe independent testing lab shall be by mutual agreement between AMPI and the City.Instructions to the testing laboratory will be that both AMPI and the City receive copies of theresults. Testing shall be conducted four days per week unless a different frequency is set bymutual agreement between AMPI and the City. All costs involved in the testing describedherein shall be billed to AMP!. Any additional testing requested by the City shall be paid bythe City.

9. AMPI shall be responsible for calibrating and performing maintenance on its analyticalinstruments as required to insure accuracy of measurements. In the event that flowmonitoring equipment and/or sampling equipment must be out of service for any length oftime, AMPI shall inform the City of the condition and the estimated duration of non-service.During the period of non-service, wastewater flows may be estimated based on City watersupply meters. IT the period of non-service is estimated to exceed 15 days, or will prevent theCity from collecting the required number of monthly samples, arrangements shall be made bythe company to install portable sampling equipment. If sample data is not available, billingshall be based on usage estimates and the previous six months of sample results.

10. AMPI shall grant to the City access to the industry's sampling station at the City's requestfor the purpose of inspection or data collection. The City shall also have authority to enter theindustry's sampling station at any time for purposes of installation of its own monitoringequipment.

11. The average daily discharge shall be calculated based on a month average basis. The averageconcentration of all the composite samples collected by the City and analyzed during eachmonth by the independent testing laboratory, and the average daily flow for the month shall beutilized to calculate the monthly average daily discharge for the given month.

12. Rate structure shall be on the basis of Attachment B.

C. Submission of Reports and Records

1. The sm shall notify the City of Paynesville, in writing, of any discharge of a substance thatwould, if otherwise disposed of, be considered a hazardous waste under 40 CFR Part 261.Notification shall take place at least 30 days before the date of discharge and conform to 40CPR Section 403.12(P). No discharge ofany hazardous wastes may take place without priorapproval of the City of Paynesville.

2. AMPI shall submit to the City once a month a report containing daily records of wastewaterflow. The report shall be submitted to the City no later than the 14th day of each monthunless AMPI makes other arrangements satisfactory to the City for reporting.

D. General Conditions

sm

1. Industrial wastewater discharges from a Sill shall be in accordance with applicable provisionsof the Paynesville Code of Ordinances and this Agreement.

3

SID

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

The SID shall not knowingly make a false statement, representation or certification in anyrecord, report, or plan required to be submitted to the City of Paynesville under the provisionsof the Paynesville Code of Ordinances, or this Agreement.

The SID shall maintain and retain plant records relating to wastewater discharge as specifiedby the City for a minimum of three years.

The SID shall notify the City of Paynesville immediately of any slug discharge as defined inthe Paynesville Code of Ordinances, or any other discharge of a Ilubstance or wastewater inviolation of the Paynesville Code of Ordinances or this Agreement.

The SID shall install, operate, and maintain sampling and monitoring devices in properworking order at its own expense.

In the event of an industrial user's noncompliance, the user shall be subject to penalties,surcharge fees, as well as the rules and regulations relating to municipal utilities, inaccordance with the Paynesville City Code, in addition to any penalties which may beimposed pursuant to this agreement.

Any significant change in volume or characteristics of industrial wastewater introduced intothe Paynesville Wastewater Treatment Facilities shall be immediately reported to theWastewater Superintendent or City Administrator. Significant changes shall be defined asany changes which will result in the industry becoming out of compliance with the permittedvalues listed in Section B of this agreement. In such cases this agreement may be subject tomodification.

Notice of any anticipated increase in pollutants contributed shall be given to the City 30 daysin advance of such increase, in the form of a request for a new agreement.

Paynesville assumes as part of its governmental function, the handling of all sewage,including industrial and sanitary sewage, from AMP!' s existing plant in Paynesville for aperiod of five (5) years. Paynesville agrees to handle up to 400,000 gallons per day of flowhaving an organic loading of up to 4,000 pounds BOD5 per day, as defined in Paynesville'sSewer Use Ordinance.

The City agrees that the AMP!' s discharge limits, as defined in Table 1, shall not be reducedas long as the City owns and has an operational wastewater treatment facility and as long asAMPI is operational, utilizing the capacity and in compliance with this agreement and thePaynesville City Code.

The terms and conditions of the agreement may be subject to modifications by the City ofPaynesville during the term of the permit as limitations or requirements are modified by theCity or regulating agency. The user shall be informed of any proposed changes in thisagreement at least 30 days prior to the effective date of change. AMPI may request that atransition period for implementation of the agreement limitations or requirements beestablished. Such request must be made in writing prior to the effective date of change.

4

12. The City of Paynesville shall not be obligated to accept discharges which contain pollutantswhich will cause structural damage to the system or waste which will cause obstruction to theflow.

13. The Rate Schedule is subject to annual review and may be adjusted through Paynesville'sSewer Use Ordinance.

14. Upon execution, this Agreement shall become attached to Paynesville's Sewer UseOrdinance.

15. All notices, requests, demands and other communication hereunder shall be in writing andshall be deemed to have been given if and when delivered or mailed to:

Sill

a.

b.

City of PaynesvilleAttn: City Administrator221 Washburne AvenuePaynesville, MN 56362

AMPIAttn: Division Manager200 W. Railroad StreetPaynesville, MN 56362

5

ATTACHMENT BTO

SIGNIFICANT INDUSTRIAL USER AGREEMENTRATE SCHEDULE

PAYNESVaLE,MINNESOTA

Rate Schedule

1. The Sill shall pay 80% of the actual operating cost to operate the preaeration pond blowers ascompensation for discharging 4,000 pounds per day of BOD to the WWTP and a surcharge forBOD in excess of 4,000 pounds per day.

a. Surcharge: If the sm exceeds average monthly daily load of 4,000 pounds per day ofBOD, the Sill shall pay $7.30 per pound of BOD for each excess pound.

2. The Sill shall pay $2.47 per 1,000 gallons discharged to the City of Paynesville up to 400,000gallons per day of flow and a surcharge for flow beyond 400,000 gallons per day.

a. Surcharge: If the Sill exceeds average monthly daily flow of 400,000 gallons per day, theSill shall pay $10.00 per 1,000 gallons per day of excess flow.

3. The Sill shall pay $2,500.00 per month to the City of Paynesville to fund stabilization ponddredging. This fee will go towards future dredging costs but does not replace any financialrequirement the Sill may have associated with future dredging.

4. The Rate Schedule is subject to annual review and may be adjusted through Paynesville's SewerUse Ordinance. No surcharge shall be imposed if caused by a force majeure, unless the dischargeemitted by AMPI causing the surcharge could have been reasonably prevented by AMPI.

SID 6

Associated Milk Producers Incorporated (AMPI)

By: _ By: _

Its: President Its: ""-Se"'c~re""'t""'ary'_.l_-- _


COUNTY OF STEARS )

The foregoing instrument was acknowledged before me this _ day of 2011 by _and , its President and Secretary of Associated Milk Producers Incorporated.

Notary Public

City of Paynesville

By: _Jeff Thompson

Its: -=M=a:.J-v=oro-- _


COUNTY OF STEARS )

By: ~

Renee Eckerly

Its: __-----..:C""i~tv1-A~d""lTIl~·n~is~tr~a~to~r _

The foregoing instrument was acknowledged before me this _ day of 2011 by _and , its Mayor and City Administrator of the City of Paynesville.

Notary Public

Sill 7






Item Number: VII-F

ITEM DESCRIPTION:

Prepared by: Staff

COMMENTS:

Airport - Slurry Seal Project

Chuck DeWolf will give a verbal report. Please review the attached Payment Estimate NO.2 inthe amount of $89,714.68; payable to Struck & Irwin Paving, Inc. for work completed throughJune 1, 2012.



Motion to approve Payment Estimate NO.2 in the amount of $89,714.68; payable to Struck &Irwin Paving, Inc.

E3C:::>LTC>N & 1'./1 EN K., I NC:®Consulting Engineers & Surveyors

2040 Highway 12 East· Willmar, MN 56201-5818Phone (3201 231 ~3956 • Fax (3201 231-9710

www.bolton-menk.com

June 11,2012

Mr. Ron MergenPublic Works DirectorCity ofPaynesville221 Washburne AvenuePaynesville, MN 56362 " ...,

RE: 2011 Airport ImprovementsSlurry Seal ImprovementsCity of Paynesville, MinnesotaBMI Project No. T41.l 03020

JUN 14 2012

Dear Ron:

Enclosed please find three signed copies of Payment Estimate No.2 for the above referenced project. Thisestimate includes all work completed through June 1, 2012. We have reviewed the estimate and haveapproved it as sllbmitted. Please review the estimate and, if acceptable, sign and date all copies ofthe estimateand forward one copy to Struck & Irwin Paving, Inc. with payment, one copy to myselfand keep one copy foryour records.

Thank you for taking the time to review this estimate. Please feel free to call me ifyou have any questions orwould like to discuss the estimate.

Sincerely,

ENK'T;jfileliuck DeWolf,WrCity Engineer

CWD/jd

Enclosures

DESIGNING FOR A BETTER TOMORROW

CONTRACTOR RECAPITULATIONSLURRY SEAL AIRPORT IMPROVEMENTS

CITY OF PAYNESVILLE, MINNESOTA8MI PROJECT NO. T41.103020

TOTAL, COMPLETED WORK TO DATE »> .

TOTAL, STORED MATERIALS TO DATE .

DEDUCTION FOR STORED MATERIALS USED IN WORK COMPLETED .

TOTAL, COMPLETED WORK &STORED MATERIALS ..

RETAINED PERCENTAGE ( 50/0 ) .

TOTAL AMOUNTOF OTHER PAYMENTS OR (DEDUCTIONS) ..

NETAMOUNT DUE TO CONTRACTOR TO DATE. .

TOTAL AMOUNT PAID ON PREVIOUS ESTIMATES .

PAY CONTRACTOR AS ESTIMATENO.2 .

$119,849.20

$0.00

$0.00

$119,849.20

($5,992.46)

$0.00

$113,856.74

$24,142.07

$89,714.68

CERTIFICATE FOR PARTIAL PAYMENTI hereby certify that, to the bestof my knowledge and belief, all items, quanitities, and prices of work and material shown on theEstimate are correct and that all work has been performed in full accordance with the terms and conditions of the Contract forthis project between the Owner and the undersigned Contractor, and as amended by any authorized changes, and that theforegoing is a true and correct statement of the contract amount for the period covered by this Estimate.

Contractor: Struck & Irwin Paving, Inc.7219 Gene StreetDeForest, WI58532

!Nj?cf fV1ana,Pt' ....lltle

~~~~~~lIC.;...~~w------'PROJECT ENGINEER

Date '-It -/7

APPROVED FOR PAYMENT:Owner:

BY--:~ -=:; ---:~ _

Name TItle Date

And_:-;- -;;::;; -;:-:-- _Name TItie Dme

Page 1of2

SCHEDULE OFUN" PRICESSLURFIY SEAL AIRPORT IMPROVEMENTSCITYOF PAYNESVIll.E, MINNESOTABMI PROJECTT41.103020

PAY ESTIMATE NO.: 2WORK COMPLETED THROUGH: 611112

BID BID QUANTITYITEM MnlOOT OR FAA UNIT BID AMOUNT COMPLETED AMOUNTNO. SPEO.NO. ITEM PAloe QUANTITY UNIT EXTENSION TO DATE TOOATE

1 2021.501 MOBIUZATION 1£6470.00 1.00 LS $5,470.00 1.00 $5,470.002 01566-1 MAINTENANCE AND OONTROLOF TRAFFIC 1£1000.00 1.00 LS $1,000.00 1.00 $1,000.003 02780-1 PAINTING, WHITE, WATERBORNE,"TYPE I SO.83 12.976 SF $10,769.25 $0.004 02760·2 PAINTING, YELLOW, WATERBORNE, TYPE I SO.83 1900 SF $1,677.00 $0.005 02760-3 PAINTING, BLACK, WATERBORNE, TYPE r SO.85 875 SF $743.75 $0.006 02760-4 REFLEOTIVE MEDIA, TYPE I, GRADATION A SO.45 900 LB $405.00 $0.007 02760·5 REFLECTIVE MEDIA, TYPE III SB.OO 10 LB $60.00 $0.008 029751 BITUMINOUS ORACK AND JOINT REPAIR SO.65 37000 LF $24,050.00 36808 $23.795.209 02786.1 (P-626\ EMULSIFIED ASPHALT SLURRY SEAL SURFACE TREATMENT SUO 54700 SY $87520.00 55990 $69,564.00

Page2of2

CONTRACT AMOUNT: $131,595.00

TOTAL COMPLETED TO DATE: $119,849.20






Item Number: VII- G

ITEM DESCRIPTION: Trail

Prepared by: Staff

COMMENTS:

Please review the attached Agreement between the DNR and the City of Paynesville for LakeKoronis Recreational Trail Phase 7.



Motion to approve Agreement between the DNR and the City of Paynesville for Lake KoronisRecreational Trail Phase 7.

AGREEMENT BETWEEN THE STATE OF MINNESOTADEPARTMENT OF NATURAL RESOURCES

AND THE City of Paynesville (#RI06-11-3A)

THIS AGREEMENT is made between the State ofMinnesota, acting by and through itsCommissioner ofNatural Resources (hereinafter the "State"); and the City of Paynesville(hereinafter the "Recipient").

.WHEREAS, The Minnesota Legislature by 2011 Minnesota Laws, First Special Session, Chapter2, Article 3, Section 2, Subdivision 4 from the natural resources fund for trail grants to local unitsofgovernment and 2011 Minnesota Laws, First Spedal Session, Chapter 2, Article 3, Section 2,Subdivision 4d from the Environmental and Natural Resources Trust Fund (ENRTF) for trailgrants to local units of government on land to be maintained for at least 20 years for the purposesofthe grant. This appropriation is from the revenue deposited in the natural resources fundunder Minnesota Statutes, section 297A.94, paragraph (e), clause (4). In addition, if a projectfinanced under this program receives a federal grant award, the availability of the financing fromthis paragraph for that project is extended to equal the period of the federal grant; and

WHEREAS, the Recipient has applied to the State for a grant and has proposed to construct 2miles of bituminous trail, which is phase 7 of the Lake Koronis Trail on the west side ofLake Koronis completing the trail around the lake and connecting to the Glacial LakesState Trail; (hereinafter the "Project") and which has been approved by the Recipient'sappropriate governing entity as evidenced by Attachment "An which is attached hereto andincorporated by reference herein;

NOW THEREFORE, it is agreed between the State and the Recipient as follows:

1. GENERAL CONDITIONS

1.1 The total obligation ofthe State for all compensation and reimbursement to theGrantee under this Grant Agreement will not exceed $250,000.

1.2 The Recipient acknowledges thatthese funds are proceeds from the NaturalResources Fund, which is subject to certain legal restrictions and requirements,including Minnesota Statutes Section 116P.13. The Recipient is responsible forcompliance with this and all other relevant State and Federal laws and regulationspromulgated pursuant thereto governing the proceeds of the Fund in thefulfillment of the Project. Further, the Recipient is responsible for obtaining allapplicable permits, permission and/or interests in property necessary for theperformance of this Agreement.

1- Cooperative Trail Program

1.3 CONTACT PERSONSThe authorized contact person for the State is:

Andrew Korsberg, Trail Program CoordinatorTrails and Waterways DivisionDepartment ofNatural Resources500 Lafayette Road, Box 52St. Paul, Minnesota 55155-4Q52

The authorized contact person for the Recipient is:Renee Eckerly, City AdministratorCity ofPaynesville221 Washburne AvePaynesville, Paynesville, MN 55362

The authorized fiscal agent for the Recipient is:Renee Eckerly, City AdministratorCity ofPaynesville221 Washburne AvePaynesville, MN 55362

1.4 OPERATION OF THE PROJECT.The Agency shall operate the PROJECT or cause it to be operated as outlined inthe approved Application that is attached hereto as Attachment "B" which isincorporated by reference herein during the period from the effective date asreferenced in paragraph 13.1 through June 30, 2013.

2. USE OF FUNDS

The Recipient shall use the proceeds of this agreement only for the eligible costs of theProject as outlined in Section 5. Costs.

3. MATCHING FUNDS

The State shall disburse funds to the Recipient pursuant to this agreement on areimbursement basis not to exceed twenty-five (25) percent of its eligible costs, asdescribed in Section 5. Costs up to a maximum of $250,000.

4. PROJECT

4.1 PROJECT SPECIFICATIONSThe Project shall be guided by the Application as approved by the State.After completion of the Project, the Recipient shall certify to the State that theProject, as conducted, conforms to the approved Application. Said certificationmust be filed with the State prior to final reimbursement for the Project by theState.

2-Cooperative Trail Program

(A\

4~2 ADMINISTRATION AND SUPERVISIONThe Recipient shall be responsible for the administration, supervision,management and Project oversight that may be required for the work performedunder this agreement. The Recipient may employ such professional services, as itdeems reasonable and necessary to provide these services, subject to the provisionof Section 5. Costs.

4.3 ACKNOWLEDGMENTS.Upon Project completion, the Recipient shall post a permanent fundingacknowledgment sign at the entranc~ to the Project site, or at an alternativeconspicuous location on the site. The sign will state that the site wascooperatively developed by the Minnesota Department ofNatural Resources.

4.4 STATUS REPORTSThe Recipient shall submit to the State program status, as the State shallreasonably request.

5. COSTS

5.1.35.1.45.1.55.1.6

5.1 REIMBURSABLE COSTSEligible costs shall be those costs directly incurred by the Recipient in preparationof and the actual conduct of the Project. Eligible costs shall be based upon theapproved Application and can include the following types of costs provided theyare solely related to and necessary for the completion of the Project:

5.1.1 Advertising costs solely for (1) Recruitment ofpersonnel; (2)Solicitation of bids; and (3) Disposal of scrap materials;

5.1.2 Capital and labor expenditures for facilities, equipment and othercapital assets;Communication costs incurred for telephone calls and postage;Materials & supplies;Freight transportation expenses; andProfessional services and Project administration costs providedthat they do not exceed 20% ofthe total cost of the Project;

5.1.7 Land acquisition (including permanent easements) whosevalue is established by a licensed appraiser and whoseconclusions of value are certified by the state.

Any cost not defined as an eligible cost or not included in the approved Application shall not bepaid from State funds committed to the Project.

5.2 NONREIMBURSABLE COSTSNoneligible costs for reimbursement means all costs not defined as eligiblecosts, including but not limited to the following:5.2.1 Any expenditure that occurs outside ofthe operating dates

established in Section 1.4 (OPERATION OF THE PROJECT);5.2.2 Fund raising;5.2.3 Volunteer or Donated Labor


5.2.45.2.55.2.65.2.75.2.85.2.95.2.105.2.115.2.125.2.135.2.14

Taxes, except sales tax on goods and services;Insurance, except title insurance;Attorney fees;Loans, grants, subsidies to persons or entities for development;Baq debts or contingency funds;Interest;Lobbyists;Political contributions;Wages and expenses of Recipient's employees;Fringe benefit costs ofRecipient's employees; andLand appraisals.

6. REIMBURSEMENT PROCEDURES

6.1 Invoices. The State will promptly pay the Grantee after the Grantee presents anitemized invoice for the services actually performed and the State's AuthorizedRepresentative accepts the invoiced services. Invoices must be submitted at theclose of each state fiscal year (July 1 - June 30) at the very least.

6.2 Federalfunds. (Where applicable, if blank this section does not apply)Payments under this grant contract will be made from federal funds obtained bythe State through Title ----------- CFDA number ------------- of the ---------------Act of ---------------. The Grantee is responsible for compliance with all federalrequirements imposed on these funds and accepts full financial responsibility forany requirements imposed by the Grantee's failure to comply with federalrequirements.

All reimbursement requests, including invoices, for this project must be received by theState oil or before June 30,2013.

Upon completion ofthe Project, the Recipient shall certify to the State that the Project,as conducted, conforms to the approved Application. Said certification must be filedwith the State prior to final reimbursement for the Project by the State.

Prior to reimbursement for land acquisition, if applicable, the Recipient must file aperpetual easement referenced in Paragraph 14 herein below with the CountyRecorder and provide a copy of the same with the state.

7. ACCOUNTING AND AUDIT

Under Minn. Stat. § 16C.05, subd. 5, the Grantee's books, records, documents, andaccounting procedures and practices relevant to this grant contract are subject toexamination by the State and/or State Auditor or Legislative Auditor, as appropriate, fora minimum of six years from the end of this grant contract.


8. NONDISCRIMINATION

The Recipient in the conduct of the Project shall not engage in discriminatoryemployment practices and shall in all respects comply with Minnesota Statutes,Sections 363.03 and 181.59-60 and all applicable rules and subsequent amendments.

9. WORKERS COMPENSATION

The Grantee certifies that it is in compliance with Minn. Stat. § 176.181, subd. 2,pertaining to workers' compensation insurance coverage. The Grantee's employees andagents will not be considered State employees. Any claims that may arise under theMinnesota Workers' Compensation Act on behalf ofthese employees and any claimmade by any third party as a consequence ofany act or omission on the part of theseemployees are in no way the State's obligation or responsibility.

10. GOVERNMENT DATA PRACTICES AND INTELLECTUAL PROPERTY

10.1 Government Data Practices. The Grantee and State must comply with theMinnesota Govenunent Data Practices Act, Minn; Stat. Ch. 13, as it applies toall data provided by the State under this grant contract, and as it applies to alldata created, collected, received, stored, used, maintained, or disseminated bythe Grantee under this grant contract. The civil remedies ofMinn. Stat. § 13.08apply to the release of the data referred to in this clause by either the Grantee orthe State.

10.2 Intellectual Property Rights. The State owns all rights, title, and interest in all ofthe intellectual property rights, including copyrights, patents, trade secrets,trademarks, and service marks in the Works and Documents created and paidfor under this contract. Works means·all inventions, improvements, discoveries(whether or not patentable), databases, computer programs, reports, notes,studies, photographs, negatives, designs, drawings, specifications, materials,tapes, and disks conceived, reduced to practice, created or originated by theGrantee, its employees, agents, and subcontractors, either individually or jointlywith others in the performance of this grant contract. Works includes"Documents." Documents are the originals of any databases, computerprograms, reports, notes, studies, photographs, negatives, designs, drawings,specifications, materials, tapes, disks, or other materials, whether in tangible orelectronic forms, prepared by the Grantee, its employees, agents, orsubcontractors, in the performance ofthis grant contract. The Documents will bethe exclusive property of the State and all such Documents must be immediatelyreturned to the State by the Grantee upon completion or cancellation ofthisgrant contract. To the extent possible, those Works eligible for copyrightprotection under the United States Copyright Act will be deemed to be "worksmade for hire." The Grantee assigns all right, title, and interest it may have in


the Works and the Documents to the State. The Grantee must, at the request ofthe State, execute all papers and perform all other acts necessary to transfer orrecord the State's ownership interest in the Works and Documents.

11. LIABILITY

The Grantee must indemnify, save, and hold the State, its agent, and employeesharmless from any claims or causes of action, including attorney's fees incurred by theState, arising from the performance of this grant contract by the Grantee or theGrantee's agents or employees. This clause will not be construed to bar ant legalremedies the Grantee may have for the State's failure to fulfill its obligations under thisgrant contract.

12. CONVERSION OF USE

The Recipient shall not at any time convert any property acquired or developedpursuant to this Agreement to uses other than those specified in this Agreement withoutthe prior written approval of the State, until a period of twenty years from the time thedesignated Funds are no longer available for the Project, has expired.

13. TERM13.1EFFECTIVE DATE

This agreement shall become legally effective on June 15, 2012, or the date theState obtains all required signatures under Minnesota Statutes Section 16C.05,subdivision 2, whichever is later. The Grantee must not begin work under thisGrant Agreement until this Grant is fully executed and the Grantee has beennotified by the State's Authorized Representative to begin work. This Agreementshall become legally effective upon such date as it is executed by the StateAgency.

13.2 EXPIRATION DATEThe agreement shall remain in effect until June 30, 2013, or until all obligationshave been satisfactorily fulfilled, whichever occurs fITst.

13.3TERMINATIONIf the State fmds that there has been a failure on the part of the Recipient tocomply with the provisions of this Agreement, that reasonable progress has notbeen made, or that the purposes for which the funds were awarded have not beenor will not be fulfilled, the State may take action to protect the interests of theState including, but not limited to, the refusal to disburse additional funds andrequiring the return of all or part of the funds previously disbursed.

13.4AMENDMENTSAny amendment to this grant contract must be in writing and will not be effectiveuntil it has been executed and approved by the same parties who executed andapproved the original grant contract, or their successors in office.


14. ANTI-TRUST PROVISION

The Recipient hereby assigns to the State of Minnesota any and alPclaims forovercharges as to goods and/or services provided in connection with the Agreementresulting from antitrust violations that arise under the antitrust laws of the Ui:lited Statesand the antitrust laws of the State of Minnesota.

15. ASSIGNMENT

The Recipient agrees to grant to the State a perpetual easement for the general public touse the subject property for recreational trail purposes. Attached hereto as Attachment"D" and incorporated by reference is a copy of the indenture to be filed with the countyrecorder if applicable.

16. DATA DISCLOSURE

Under Minn. Stat. § 270.66, and other applicable law, the Grantee consents todisclosure of its social security number, federal employer tax identification number,and/or Minnesota tax identification number, already provided to the state, to federal andstate tax agencies and state personnel involved in the payment of state obligation. .These identification numbers may be used in the enforcement of federal and state taxlaws which could result in action requiring the Grantee to file state tax returns and paydelinquent state tax liabilities, if any.


1. STATE ENCUMBRANCE VERIFICATIONIndividual certifies thatfunds have been encumbered asRequiredb inn. Stat. §§ 16A.15 and 16C.05.

Signed::-tL~~:k3~~=!...-~~~'2.Date:,__-f1>-"""-'!O..L='----.......,~f.--=._

Purchase Order No. 30000020017

2. GRANTEE

The Grantee certifies that the appropriate person(s)Have executed the grant contract on behalfofthe Grantee as requiredby applicable articles, bylaws, resolutions, or ordinances.

By:---------------

Title: _

Date: _

By: _

Title:-------------

Date: _

Revised 8/5/2008

3. STATE AGENCY

By:..,..--..,........,....,..--.,..--.,..-- _(with delegated authority)

Title: Deputy Director, Division ofParks and Trails

Date:~~---------

LIST OF ATTACHMENTSA Resolution and approval by board or councilB Approved ApplicationC Financial Management Manual - on website as referenced in cover letter







Item Number: VII-H

ITEM DESCRIPTION:

Prepared by: Staff

COMMENTS:

TIF District No. 1-12 - Stang Precision

Please review the attached documents for TIF District No. 1-12. Ed Tschida will be inattendance to present the TtF.



Motion to approve Resolution 2012-21 Of The City Council Of The City Of PaynesvilleApproving Tax Increment Financing District No. 1-12 And The Use Of Tax IncrementFinancing.

RESOLUTION 2012-21OF THE CITY COUNCIL OF THE CITY OF PAYNESVILLE

APPROVING TAX INCREMENT FINANCING DISTRICT NO. 1-12AND THE USE OF TAX INCREMENT FINANCING

WHEREAS, the City Council ofthe City of Paynesville, Minnesota (the "City"), has previouslyapproved Development District No.1 (the "Development District") and in connection therewith adopted adevelopment program; and

WHEREAS, the City Council has reviewed "Tax Increment Financing District No. 1-12, dated June 27,2012" (the "Plan"), which sets forth a tax increment financing plan for the District; and

WHEREAS, it is desirable and in the public interest that the City undertake and carry out a tax incrementfinancing plan for Tax Increment Financing District No. 1-12 pursuant to Chapter 469 ofMinnesota Statutes,encompassing the area which is more particularly described in the Plan (the "District"); and

WHEREAS, the Plan sets forth the City's estimate of the fiscal and economic impact ofthe District onthe tax capacities of all taxing jurisdictions in which the District is located; and

WHEREAS, the County Auditor of Steams County, Minnesota, has been notified of the public hearingfor the review of the Plan; and

WHEREAS, the Clerk of the School Board ofIndependent School District No. 741 has been notified ofthe public hearing for the review of the Plan; and

WHEREAS, the City has received and considered the comments of Steams County and IndependentSchool District No. 741 relating to the contents of the Plan; and

WHEREAS, the City on June 27, 2012, after having published a notice ofpublic hearing in the officialnewspaper of the City, conducted a public hearing on the Plan and received public comments on the same.

THE CITY OF PAYNESVILLE RESOLVES:

Sec. 1. That it is hereby found and determined there is a need for the activities of the DevelopmentDistrict to be fmanced in part by the tax increments from the District.

Sec. 2. That it is hereby found and determined the activities set forth in the Plan will result in preservationand enhancement of the tax base ofthe state.

Sec. 3. That it is hereby found and determined the tax increment financing plan as set forth in the Planhaving been duly reviewed and considered is hereby approved and adopted, and the area described in the Plan ishereby affIrmed and designated as an Economic Development District and pursuant to Minnesota Statutes,Section 469.174, Subdivision 12.

Sec. 4. That, in the opinion of the City, it is hereby found and determined: (i) the proposed developmentor redevelopment would not reasonably be expected to occur solely through private investment within thereasonably foreseeable future; and (ii) the increased market value ofthe site that could reasonably be expected tooccur without the use oftax increment financing would be less than the increase in the market value estimated toresult from the proposed development after subtracting the present value of the projected tax increments for themaximum duration ofthe District permitted by the Plan.

Sec. 5. That it is hereby found and determined that the tax increment financing plan will afford maximumopportunity, consistent with sound needs ofthe City as a whole, for the development of the Project by privateenterprise.

Sec. 6. That it is hereby found and determined that the tax increment financing plan set forth in the Planconforms to the general plan for the development of the City as a whole.

Sec. 7. That the reasons and supporting facts for findings 3, 4, 5 and 6 as set forth on pages 3, 4 and 5 ofthe Plan are by this reference confirmed and adopted.

Sec. 8. That it is hereby found and determined the provisions of Minnesota Statutes 116J.993 to 116J.985the Business Subsidy Act apply to this development and will require an agreement with the recipient of thesubsidy.

Sec. 9. That the City Clerk shall request the Auditor of Steams County to certifY the original tax capacityand original local tax rate of the District approved by this resolution.

Sec. 10. That the City Clerk is hereby directed to file a copy ofthis resolution and a copy ofthe Plan withthe Minnesota Department of Revenue and Office of the State Auditor.

Sec. 11. That the City hereby states its intention to use all ofthe captured tax capacity for purposes oftaxincrement financing as per the conditions set forth in the Plan.

Sec. 12. That the City authorizes the Mayor and City Administrator to execute the DevelopmentAgreement with Stang Precision Inc.

Adopted this 27th day of June 2012.

Jeffrey Thompson, Mayor

ATTEST:

Renee Eckerly, City Administrator

The motion for the adoption of the foregoing resolution was made by Councilmember _----=---:-- _and duly seconded know will by Councilmember . Upon a vote being taken thefollowing members voted in favor thereof:

Those against same: _

Advance Resource~

~CH De veiopl'nen l.. ;' ~ I '

[VIA EMAIl:-j

To:

From:

Re:

Date:

Economic Development Authority ofPaynesville

Ed Tschida

Establishing New TIF DistrictTIF No. 1-12

May 17,2012

BACKGROUND

Bruce Stang, owner of Stang Precision, Inc., isrequesting that EDAP and the City consider the use oftax increment financing in conjunction with a proposedmanufacturing facilities expansion. The 30,OOO-ft.2

expansion will be constructed on the west side oftheexisting industrial building located at 125 IndustrialLoop West. The aerial photo to the right shows thelocation ofthe existing building and the approximateexpansion area, as well as the boundaries oftheproposed TIF district.

DEVELOPMENT CRITERIA

Before using tax increment financing, EDAPand the City are required to determine the legaleligibility of the proposed project. The requirementsfor a project to qualify as an "Economic Development"tax increment financing district are presented in theresponse to question 1. In addition, EDAP and theCity should consider how well the project fitseconomic and community developmentgoals.

1. Does the project meet the legislative criteria and general use ofthe law?

A. Minnesota Statutes, section 469.174, subdivision 12 defines "economic development district" to meana type oftax increment financing district which consists of any project, or portions of a project, which the cityfinds to be in the public interest because:

• it will discourage commerce, industry, or manufacturing from moving their operations to another stateor municipality; or

• it will result in increased employment in the state; or

• it will result in preservation and enhancement of the tax base of the state.

B. Minnesota Statutes, section 469.174, subdivision 4c. places the following limitations on economicdevelopment districts:

Revenue derived from tax increment from an economic development district may be used to provideimprovements, loans, subsidies, grants, interest rate subsidies, or assistance in any form to developmentsconsisting of buildings and ancillary facilities, if 85% of the buildings and facilities (determined on the basis ofsquare footage) are used for the following purposes:

• the manufacturing or production of tangible personal property, including processing resulting in thechange in condition of the property;

• warehousing, storage, and distribution oftangible personal property, excluding retail sales; and

• space necessary for and related to the activities listed above.

C. Minnesota Statutes, section 469.176, subdivision 1b provides that no tax increment shall in any eventbe paid to the City after eight years after receipt by the City ofthe first increment for an economic developmentdistrict,

The proposed project is capable of meeting the above legislative criteria for a tax increment financing"economic development district". The proposal is typical of the general use oftax increment for economicdevelopment efforts.

2. What new employmentpotential is created?

The project consists of a 30,000-ft.2 plant expansion. The expansion will create new jobs over the nextfew years.

3. Does the project increase the tax base?

The long-term impact would be an increase of the local (City, county and school district) tax base. Table1 shows an estimate of the annual tax increment generated by the expansion project.

TABLE 1: TAX INCREMENT CALCULATIONS

Local Tax Rate = 116.692% (Paynesville, Payable 2011)Property Classification: IndustrialCompletion Prior to December 31, 2012Estimated Completion Market Value: $1,044,300

YEAR BASE PROJECT'S CAPTURED ADJUSTED LESS NETTAXES TAX TAX TAX TAX ADMIN. ANNUAL

PAYABLE CAPACITY CAPACITY CAPACITY INCREMENT OF 5% TIF2012 7,524 0 0 0 0 02013 7,524 0 0 0 0 02014 7,524 20,136 12,612 14,664 733 13,931

through2022 7,524 20,136 12,612 14,664 733 13,931

TOTALS $131,978 $6,599 $125,379Present Value Discounted at 5.00% Interest Equals $95,161

Tax increment Financing District Proposal Page 2 of3 o{l~

4. What impact is there on City service needs?

The proposed project expands an existing manufacturer, which, due to the size of the expansion, will haveminimal affect on City services.

5. Does the project support existing residential, industrial or commercial operations in the City?

The project will result in the expansion of an existing manufacturer within the City that will increase localemployment, purchases at local businesses and occupancy of local residences. These activities will generally besupportive of the local economy.

6. What is the quality ofthe proposedfacility?

The facilities would conform to City requirements for this type of development and be constructed similarto the existing building located at 125 Industrial Loop West.

7. What is thefinancial feasibility ofthe proposedproject?

The project consists of a locally owned and operated firm that is in need oflarger facilities due to steadyand continuing growth. In order to create a financially viable project, Mr. Stang seeks a public/private-financingpackage that includes owner equity, bank loan, and "pay-as-you-go" tax increment financing.

8. Would the project proceed in its present design and timetable without City assistance?

The project would not proceed without City assistance. The proposed public/private financing is integralto financial viability of the business expansion.

9. Is there compatibility ofthe proposedproject with the City's overall development plans and objectives andwith those ofthe neighborhoodproposedfor the project's location?

The community supports projects that promote the development of industrial and manufacturing uses,which will benefit the community and will not result in adverse effects to the land, air, infrastructure orcommunity as a whole. The EDAP and City also encourage these developments by providing local financialassistance.

OBSERVATIONS AND RECOMMENDATION

Observations:• The development proposal meets the EDAP and City goals for financial assistance, and it will be

compatible with community plans and City ordinances.• Overall, the project appears to be a good fit for the community.

Recommendation:• IfEDAP concurs with the above observations, it should recommend to the City Council to proceed

with a new TIP district for the project.

Attachments:• Attached is a review schedule for establishing a new tax increment financing district, City Council

resolution calling for a public hearing and notice ofpublic hearing.

Tax increment Financing District Proposal Page 3 af3 ~'btv

\SCHEDULE OF EVENTS TO ADOPT

TAX INCREMENT FINANCING DISTRICT DOCUMENTSFOR

STANG PRECISION, INC. EXPANSION PROJECTCITY OF PAYNESVILLE, MINNESOTA

TAX INCREMENT FINANCING DISTRICT NO. 1-12DATE DESCRIPTION TYPE TIME

Monday, May 21,2012 EDA meeting to review Project Regular 7:00A.M.

Wednesday, May 23,2012 City Council adopts Resolution calling for public hearing Regular 6:00P.M.

Friday, May 25,2012 County and School District Notification (30 days before public hearing)

TIF No. 1-12 Plan must be mailed by this date to school and county

I

Friday, June 08, 2012 Forward Notice to Legal Paper (On or before date to the left)

Wednesday, June 13,2012 Publish Notice of Hearing - City's Legal Newspaper - WednesdayPublication- Notice must include map ofTIF No. 1-12

Wednesday, June 27, 2012 Date ofPublic Hearing Regular 6:30P.M.

Wednesday, June 27, 2012 City Council adopts Resolution creating TIP No. 1-12 Regular 6:30P.M.

Tuesday, June 28, 2012 Request TIF District Certification from County Auditor

Monday, July 02, 2012 File documents with City, county and state

TAX INCREMENT FINANCING DISTRICT NO. 1-12(Stang Precision Inc. Expansion Project)

CITY OF PAYNESVILLE, MINNESOTA

JUNE 27, 2012

PREPARED BY

Advance Resources for Development, Inc.201 N Broad Street, Suite 310

Mankato, Minnesota

TABLE OF CONTENTS

PageII\lTRODUCTION.................................................................................................................................. 1

BACKGROUND 1DEFINITIONS 1

PURPOSE OF TAX INCREMENT FINANCING PLAI\I..................................................................... 2TAX INCREMENT FINANCING DISTRICT NO. 1-12 MAP 2

TAX INCREIVIEI\lT FII\lANCING PLAN 3RELATIONSHIP OF TAX INCREMENT DISTRICT TO DEVELOPMENT DISTRICT 3

DESCRIPTION OF DEVELOPMENT PROPOSAL........................................................................... 3

LIST OF PARCELS IN DISTRICT NO. 1-12.................................................................................... 3FINDINGS.................................................................................................................................. 3

STATEMENT OF OBJECTIVES OF DEVELOPMENT DISTRICT NO.1............................................ 5

DEVELOPMENT PROGRAM FOR PROJECT AREA....................................................................... 5TAX INCREMENT DISTRICT DEVELOPMENT ACTiViTIES............................................................ 5

PROPERTY ACQUISITION AND DISPOSITION 6

NOTIFICATION OF PRIOR PLANNED IMPROVEMENTS 6FINANCIAL PLAN 6

ESTIMATE OF PUBLIC COST............................................................................................. 6

FINANCING ASSUMPTIONS............................................................................................. 6

SOURCE OF REVENUE 7

LIMITATION ON USE OF TAX INCREMENT; ECONOMIC DEVELOPMENT DISTRICTS 8

ESTIMATED TOTAL CAPTURED TAX CAPACITY; RETENTION 8

BUSINESS SUBSIDY 8

IMPACT OF THE USE OF TAX INCREMENT ON TAXING JURiSDiCTIONS.......................... 8

INTRODUCTION

BACKGROUND

Tax Increment Financing District No. 1-12 is proposed as an economic development district. Bruce Stang(Stang Precision Inc.) has contacted the Economic Development Authority of Paynesville and City regarding theuse of tax increment financing aid financing offacilities expansion. The company is proposing an approximate30,OOO-ft.2 expansion to its plant located in the industrial park at 125 Industrial Loop West. The map on page 2shows the location of the District. Tax increment, generated by development in the District, will fund propertyacquisition.

Project construction will begin in July 2012. The construction period will take 4 to 6 months, withoccupancy scheduled for late 2012.

DEFINITIONS

For the purpose of the Tax Increment Financing Plan, the following terms shall have the meaningsspecified below, unless the context otherwise requires.

"City" means the City of Paynesville, Minnesota.

"Council" means the City Council of Paynesville, Minnesota.

"Development District" means a specific area within the corporate limits of a municipality, which hasbeen so designated and separately numbered by the governing body. "Development District" also meansDevelopment District No. 1.

"Economic Development District" means a type oftax increment financing district which consists of anyproject or portions of a project, which the City finds to be in the public interest because:

1. It will discourage commerce, industry or manufacturing from moving their operations to another stateor municipality; or

2. It will result in increased employment in the state; or

3. It will result in preservation and enhancement of the tax base of the state.

"Project" means development district as defined in Minnesota Statutes, section 469.125, Subdivision 9.

"Tax Increment Financing District No. 1-12" or "District" means a contiguous or noncontiguousgeographic area within a project delineated in the tax increment financing plan, as provided by section 469.175,subdivision 1, for the purpose of financing redevelopment, housing or economic development in municipalitiesthrough the use of tax increment generated from the captured net tax capacity in the tax increment financingdistrict.

"Tax Increment Financing Plan" or "Plan" means the plan for Tax Increment Financing District 1\10.1-12prepared pursuant to the provisions of Minnesota Statutes, sections 469.174 to 469.179, which provides astatement of objectives, the development program, development activities, project timing, budget estimates,estimated impact on affected taxing jurisdictions, identification of studies or analysis used to determine need forfinancing and identification of parcels to be included in the District.

PURPOSE OF TAX INCREMENT FINANCING PLAN

The District is being established pursuant to Minnesota Statutes, Chapter 469, in orderto give theCouncil the authority to use tax increment financing as a funding source. Under Chapter 469, a tax incrementdistrict has to be established as a housing district, a redevelopment district, a renewal and renovation district, asoils condition district or an economic development district. Since this area qualifies as economic developmentdistrict, pursuant to Minnesota Statutes, section 469.174, subdivision 12, it will have duration of eight yearsafter receipt by the City of the first increment.

Formation of the District improves the quality of life in the community by financing eligible Project costs,which results in job creation and enhancement of the tax base.

TAX INCREMENT FINANCING DISTRICT NO. 1-12 MAP

TAX INCREMENT FINANCING DISTRICT NO. 1-12PAYNESVILLE, MN

JUNE 27, 2()12

NOTE: Tax increment Financing District No. 1-12 is located in Development District No. !the boundary of whichis identical to the Paynesville city boundary.

Tax Increment Financing District No. 1-12

TAX INCREMENT FINANCING PLAN

RELATIONSHIP OF TAX INCREMENT DISTRICT TO DEVELOPMENT DISTRICT

Development District No.1 was formed in order to promote development of certain property, secureadditional residential, commercial and industrial development opportunities, increase property subject totaxation, provide public improvements to development properties, and designate methods for the financing ofactivities in the Development District.

Development District law authorizes the use of tax increment funds to pay for these Project activitiesand improvements. When using tax increment funds, it is necessary to establish a tax increment financingdistrict according to Minnesota Statutes, sections 469.174 to 469.179, inclusive. Approval ofthis Plan results inthe formation ofTax Increment Financing District No. 1-12, the purpose of which is to finance the developmentactivities authorized by the creation of Development District No. 1.

DESCRIPTION OF DEVELOPMENT PROPOSAL

Stang Precision Inc. (the Developer) is proposing an approximate 3D,DDO-ft.2 expansion of its pia ntlocated in the industrial park at 125 Industrial Loop West. Creation of the District will result in job creation andincreased tax base. Development will be consistent with the City's planning and zoning regulations. Taxincrement, generated by development in the District, will fund eligible project costs, which may include propertyacquisition.

The City's use of tax increment financing will be provided via the "pay-as-you-go" tax incrementfinancing. Under the "pay-as-you-go" program, the Developer pays for eligible development costs. These costsare then reimbursed to the Developer on a yearly basis in an amount not to exceed an agreed upon percentageof the tax increment collected from the District. This "buy down" will occur over the life of the District or until allagreed upon costs have been reimbursed. The intent of this method is to apply all the savings from the "pay-asyou-go" tax increment financing to reduce the project cost.

LIST OF PARCELS INCLUDED IN DISTRICT I\JO. 1-12

The following parcels are located in the District: 70.39242.0004 and 26.15482.0000.

FINDINGS

Minnesota Statues, section 469.175, subdivision 3, requires that prior to City approval of a tax incrementfinancing plan the statutory findings of subdivision 3 must be made and the reasons for those findings must beset forth in writing along with supporting facts for each determination. The findings and supporting facts for theDistrict are as follows:

1. FINDING. That the proposed tax increment financing district is an economic development district.

SUPPORTING FACTS. Minnesota Statutes, Chapter 469, provides for five types of districts -- aredevelopment district, renewal and renovation district, soils condition district, a housing district, and aneconomic development district -- each serving a well-defined need and each having different qualifyingstandards. Tax Increment Financing District No. 1-12 is an "Economic Development District". MinnesotaStatutes, section 469.174, subdivision 12, defines "Economic Development District". This definition is alsoincluded on page 1 of this Plan.

Tax Increment Financing District No. 1-12 3

The proposed District qualifies as an "Economic Development District" pursuant to the above statutebecause project activities will result in increased employment and preservation and enhancement of the taxbase of the state. Upon inclusion in the District, Stang Precision Inc. will construct an approximate 30,OOO-ft. 2

facilities expansion; thus, increasing the tax base and creating jobs.

2. FINDING. That, in the opinion of the City:

A. the proposed development or redevelopment would not reasonably be expected to occursolely through private investment within the reasonably foreseeable future; and

B. the increased market value of the site that could reasonably be expected to occur without theuse of tax increment financing would be less than the increase in the market value estimated to resultfrom the proposed development after subtracting the present value of the projected tax increments forthe maximum duration of the District permitted by this Plan.

SUPPORTING FACTS. The proposed development or redevelopment, in the opinion of the municipality,would not reasonably be expected to occur solely through private investment within the reasonably foreseeablefuture. The City supports this finding based on the facts that the cost to build, equip and operate the proposedfacilities expansion is not financially viable without public financial assistance. The City is participating in apublic/private-financing package to address this situation. The development proposed in this Plan meets Cityobjectives for industrial development in the Project area. The City believes that public/private financing,including the use of tax increment, is critical to the completion of this project, and that without this assistancethe project would not occur in the City.

Furthermore, the increased market value of the site that could reasonably be expected to occur withoutthe use of tax increment financing would be less than the increase in the market value estimated to result fromthe proposed development after subtracting the present value of the projected tax increments for the maximumduration of the District permitted by this Plan. A comparative analysis, as described above, of estimated marketvalues both with and without District formation and the use oftax increments, was performed. If all proposeddevelopment assisted with tax increment were to occur in the District, the total increased market value wouldbe up to $630,600. The estimated present value of available tax increments from the District is $100,531. TheCity finds that no development with a market value of greater than $530,069 would occur without tax incrementassistance in the District within nine years (see Table 1 on page 7). This finding is based upon evidence fromgeneral past experience that industrial developments located in rural communities are hampered in their effortsto secure sufficient conventional bank financing, and that in order to move forward, funding sources in the formof subordinated financing must be secured. The City of Paynesville believes this project qualifies for taxincrement financing and is prepared to commit this resource to the project.

3. FINDING. That the tax increment financing plan conforms to the general plan for the development orredevelopment of the municipality as a whole.

SUPPORTING FACTS. The tax increment financing plan conforms to the general plan of the City ofPaynesville for the following reason:

A. The City supports Stang Precision Inc.'s construction plan because it creates emploYment andstrengthens the tax base through planned development within the District.

B. The project conforms to the City's comprehensive plan and zoning ordinance.

4. FINDING. That the tax increment financing plan will afford maximum opportunity, consistent with the


sound needs ofthe municipality as a whole, for the development or redevelopment ofthe project by privateenterprise.

SUPPORTING FACTS. The City, in approving Development District No.1, has prepared a blueprint fordevelopment and redevelopment within the community. The Development District plan encourages cooperationwith private enterprise. Information contained in the plan along with other City plans and reports has been usedin the preparation ofthis Plan. Based upon the objective of cooperation and upon the guidance provided by Cityplans and ordinances, the City has estimated the Project costs that tax increment revenues will pay for. As theFinancial Plan contained on pages 6 through 9 of this Plan indicates, the City intends to concentrate the use oftax increment revenue on those improvements, which would not reasonably be expected to occur solelythrough private action. Private enterprise will be responsible for the vast majority of the expenses and activitiesnormally associated with land development.

STATEMENT OF OBJECTIVES OF DEVELOPMENT DISTRICT NO.1

In addition to the objectives outlined in the plan for Development District No.1, the City seeks toachieve the following objectives through the establishment of Tax Increment Financing District No. 1-12:

1. Provide employment opportunities within the City;

2. Improve the tax base of the City and the general economy of the City and State;

3. Encourage development in an area ofthe City, which has not been utilized to its full potential;

4. Implement relevant portions ofthe City's comprehensive plan; and

5. Fund property acquisition for the expansion of a private manufacturing facility.

DEVELOPMENT PROGRAM FOR PROJECT AREA

Minnesota Statutes, section 469.175, subdivision 1(2) requires "A statement as to the developmentprogram for the project, including the property within the project, if any, which the authority intends toacquire".

"Development District No.1, adopted November 18, 1987", which is on file in the City Administrator'soffice, delineates the development program for the Project. By this reference, said development program isincorporated as part ofthis Plan.

TAX INCREMENT DISTRICT DEVELOPMENT ACTIVITIES

Development activities to be financed in whole or in part because of the implementation of this Plan

include:

1. The expansion of a local manufacturing firm;

2. The preparation of a public/private financing package including tax increment financing; and

3. The City will provide pay-as-you-go tax increment assistance for property acquisition. The City andStang Precision Inc. will execute a development agreement providing for the reimbursement of propertyacquisition.

Tax Increment Financing District Na. 1-12 5

All of the proposed activities are scheduled to begin in July 2012. Expansion of the manufacturing facilityis expected to be complete in December 2012. Project financing, including tax increment financing, will becompleted in July 2012. The City will reimburse the Developer for property acquisition on an ongoing basis overthe District duration.

PROPERTY ACQUISITION AND DISPOSITION

Tax increments will be used to reimburse the property owner (Stang Holdings, llC) for its propertypurchase identified by Property ID Number 26.15482.0000.

NOTIFICATION OF PRIOR PLANNED IMPROVEMENTS

Minnesota Statutes, section 469.177, Subdivision 4 requires that the request for certification of originaltax capacity be accompanied by a listing of properties within the tax increment district for which buildingpermits have been issued in the 18 months preceding approval of the tax increment financing plan. The City hassearched its records and prepared a list of the properties within the District for which a building permit has beenissued in the 18 months immediately preceding approval of the Plan. Based on Stearns County property taxrecords the taxes payable 2012 tax capacity is estimated at 7,524.

FINANCIAL PLAN

ESTIMATE OF PUBLIC COST

The following is an estimate of capital and administrative costs including cost of District indebtedness,source of revenue, most recent tax capacity, and estimate of captured tax capacity.

1. Uses of Funds. Uses offunds within the District will pay for Developer property acquisition and Cityon-going administrative costs. Costs that may be funded in Development District No.1 because of the formationof District No. 1-12 include:

A. Property acquisitionB. District administration

TOTAL USE OF FUNDS

$125,3796,599

$131,978

2. Source of Funds. Tax increments are the sole source offunds to reimburse District costs:

FINANCING ASSUMPTIONS

A. Estimated tax increment

TOTAL SOURCE OF FUNDS$131,978

$131,978

Tax increment will finance activities in the Project area. The follOWing information was used to developthe tax increment financing assumptions in this Plan.

1. Construction of the project within the District will commence in July 2012, with completion byDecember 31, 2012.

2. Financing of the Project activities will be undertaken in 2012.


TABLE 1: TAX INCREMENT CALCULATIONS

oo

14,71714,717

14,71714,717

14,717

14,717

14,717

14,717

14,717

$100,531$132,455

PROJECT'SANNUAL

TIF

2020 7,524 20,136 12,6122021 7,524 20,136 12,6122022 7,524 20,136 12,612

2017 7,524 20,136 12,6122018 7,524 20,136 12,6122019 7,524 20,136 12,612

2016 7,524 20,136 12,6122015 7,524 20,136 12,612

2012 7,524 0 02013 7,524 0 02014 7,524 20,136 12,612

TOTALS

YEAR BASE PROJECT'S CAPTUREDTAXES TAX TAX TAX

PAYABLE CAPACITY CAPACITY CAPACITY

Present Value ofTlF Discounted at 5.00% Equals

Local Tax Rate = 116.692% (Paynesville, Payable 2012)Property Classification: IndustrialCompletion Prior to December 31, 2012Estimated Completion Market Value: $1,044,300

3. The first tax increment will be collected in 2014 payable from the 2013 tax levy. Increment may becollected for nine years (2014 through 2022) as per Table 1.

4. The 2012 local tax rate of 116.692% and 2012 tax values were used to calculate the estimate ofincrement in this Plan. The project is classified as industrial. The classification rate for this type of property fortaxes payable in 2012 is 1.5% on the first $150,000 of market value and 2.0 %on market value in excess of$150,000.

5. Increment revenues will finance capital and administrative costs resulting from the Project activities.All tax increment generated by the formation of the District will finance the activities of the Plan. The City electsto use 100% of the available tax increment over the total life of the District to finance activities in the Projectarea.

6. The City will use annual tax increments as per Table 1 to service Project costs. "Project costs" meansall expenditures of the City or reimbursement of eligible developer costs for the purchase of land or amountspaid to contractors or others providing materials and services, including architectural and engineering services,directly connected with the physical development of the real property in the District, including interest thereon.Project costs also include all administrative expenses as defined in Minnesota Statutes, section 469.174,subdivision 14. Based upon an annual increment receipts, as per Table 1, the City would be able to financeProject costs of approximately $125,379 and administration of $6,599. The first increment would be available tothe City in 2014 and would continue through 2022.

7. Table 1 shows an estimate of the fee paid to the office of State Auditor (OSA). While this fee appearson the table, the City will not receive this increment, because Stearns County withholds it for remittance to OSA.

SOURCE OF REVENUE

The source of revenue to be used to finance public costs associated with the development project in the

Tax Increment Financing District No. 1-12

District is tax increment generated through taxation ofthe land and improvements in the District. Tax incrementfinancing refers to a funding technique that utilizes increases in net tax capacity and the property taxesattributed to new development to finance, or assist in the financing of public development costs. Theimprovements resulting from development of the property within the District are estimated to generate annualtax increment as per Table 1. The District's tax increment will be generated from the construction of theexpansion of Stang Precision Inc.'s facilities. The City may issue tax increment debt or use the annual receipt oftax increment to reimburse itself or the developer for eligible Project costs.

LIMITATION ON USE OF TAX INCREMENT; ECONOMIC DEVElOPMENT DISTRICTS

Pursuant to Minnesota Statutes, section 469.176, subdivision 4c, "(a) Revenue derived from taxincrement from an economic development district may not be used to provide improvements, loans, subsidies,grants, interest rate subsidies, or assistance in any form to developments consisting of buildings and ancillaryfacilities, if more than 15 percent of the buildings and facilities (determined on the basis of square footage) areused for a purpose other than:

(1) the manufacturing or production oftangible personal property, including processing resulting in thechange in condition of the property;

(2) warehousing, storage, and distribution of tangible personal property, excluding retail sales;(3) research and development related to the activities listed in clause (1) or (2);(4) telemarketing if that activity is the exclusive use ofthe property;(5) tourism facilities;(6) qualified border retail facilities; or(7) space necessary for and related to the activities listed in clauses (1) to (6)."

BUSINESS SUBSIDY

"Business subsidy" means a state or local government agency grant, contribution of personal property,real property, infrastructure, the principal amount of a loan at rates below those commercially available to therecipient, any reduction or deferral of any tax or any fee, any guarantee of any payment under any loan, lease,or other obligation, or any preferential use of government facilities given to a business.

In order to satisfy the provisions of the Minnesota Statues 116J.993 to 116J.985 (The Business SubsidiesAct) Stang Precision Inc.'s business subsidy shall not exceed $125,379, which is the total amount of taxincrement that the City will use to reimburse the company for property acquisition. The business subsidy isneeded because project construction is not sufficiently feasible for the company to undertake without thebusiness subsidy. The District is an economic development tax increment financing district and the public .purpose of the business subsidy is to develop property in order to maintain the tax base of the City. The City hasdetermined that the purpose of the business subsidy (tax increment assistance) to be in aid of the company'splans to develop property that increases the tax base of the City.

IMPACT OF THE USE OF TAX INCREMENT ON TAXING JURISDICTIONS

Minnesota Statutes, section 469.175, subdivision 1(6), requires, "statements ofthe authority's alternateestimates of the impact of tax increment financing on the net tax capacities of all taxing jurisdictions in whichthe tax increment financing district is located in whole or in part. For purposes of one statement, the authorityshall assume that the estimated captured net tax capacity would be available to the taxing jurisdictions withoutcreation of the district, and for purposes of the second statement, the authority shall assume that none of theestimated captured net tax capacity would be available to the taxing jurisdictions without creation of the districtor subdistrict".


· .Table 2 shows the impact of tax increment financing on the tax capacity of the affected taxing

jurisdictions assuming (1) none of the increment would be available, and (2) the increment would be available tothe taxing jurisdictions.

TABLE 2PAYNESVILLE, MINNESOTA

TAX INCREMENT FINANCING DISTRICT NO. 1-12

WITHOUT PROJECTEstimated Estimated Estimated

2012 Ad Valorem 2012Tax Taxes Tax

Capacity Generated Rate

City 1,379,537 $542,944 39.3570%

County 124,737,548 $68,788,018 55.1462%

School District 5,793,094 $1,093,782 18.8808%

TOTALS 113.384%

WITH PROJECT

Estimated Projected Estimated Adjusted Projected2012 Captured Projected Ad Valorem Local Tax Captured ProjectedTax Tax Tax Taxes Tax Rate Tax Increment

Capacity Capacity Capacity Generated Rate Impact Capacity IncomeCity 1,379,537 12,612 1,392,149 $542,944 39.000% 0.357% 12,612 $4,964County 124,737,548 12,612 124,750,160 $68,788,018 55.141% 0.006% 12,612 $6,955School District 5,793,094 12,612 5,805,706 $1,093,782 18.840% 0.041% 12,612 $2,381

TOTALS 112.981% 0.403% $14,300

Statement 1: The current tax capacity times the local tax rate produces current taxes generated. If thecaptured tax capacity were available to each taxing jurisdiction the result would be a lower or aqjusted local taxrate to produce the same amount of taxes. Thus, with the addition of captured value of 12,612 the overall localtax rate would be reduced by 0.403% to a level of 112.981%. The captured tax capacity times the original localtax rate of 113.384% would generate $14,300 in increment income, which represents the loss of new taxrevenues if the development had occurred without inclusion in a tax increment district.

Statement 2: If no captured tax capacity is available to each of the taxing jurisdictions without creationof the District, there is no impact on the taxes heretofore levied and therefore no impact on local tax rates. Thecaptured tax capacity at the original local tax rate would generate $14,300 in increment income annually.


INFORSMATIONAI~

July 2012 Meeting ScheduleSun Mon Tue Wed Thu Fri Sat

1 2 3 4 5 6 7

4th ofJuly Holiday ,City Hall Closed

8 9 10 11 12 13 14Trail-Noon

Sp. Park & Tree-Public Works-5 pm Noon

Finance-5:30 pm Sp. Liquor-6:15pm Council-6pm

, ./

15 16 17 18 19 20 21EDAP-7am

Safety-4pmPlanning-6:30 pm

22 23 24 25 26 27 28

Airport-5 pm

Pub. Safety-6:30 pm Council-6 pm

29 30 31

I

August 20 12 Meeting ScheduleSun Mon Tue Wed Thu Fri Sat

1 2 3 4

5 6 7 8 9 10 II

Public Works...,.....5 pmPlanning~:30pm Liquor-6:15 pm Council-6 pm

12 13 14 15 16 17 18Trail-Noon Primary Elections-

Airport Fly In No Meetings

Finance-5:30 pm

19 20 21 22 23 24 25EDAP-7am

Wine Club-7 pmPlanning-6:30 pm Council-6 pm

26 27 28 29 30 31

Pub. Safety-6:30 pm

Paynesville Municipal LiquorDetailed Sales & Margins 2012

Generated On 6/5/2012

.........~.~ateSold = 5/28/2012)

220.00 $1,976.82 $421.49 26.08%86.00 $1,121.19 $221.14 21.47%13.00 $27.17 $14.21 53.69%39.00 $480.53 $94.66 21.76%23~00 ($23.00) ($2.00) 100.00%4.00 $19.00 $0.94 5.50%9.00 $56.02 $14.76 27.48%5.00 $5.00 $3.00 100.00%7.00 $13.49 $3.56 26.47%3.00 . $11.37 $1.56 13.71%

13.00 $80.23 $7.45 9.43%18.00 $185.82 $62.22 33.43%

PaQ91

Paynesville Municipal LiquorDetailed Sales &Margins 2012

Generated On 61512012:i1ter:(Profit Margin > -0.99) AND Date Sold Between.-

2577.00 $26,961.10 $5,124.64 25.62%1170.00 $15,232.40 $2,883.68 21.09%31.00 $215.00 $107.00 100.00%21.00 $152.49 $56.28 37.11%106.00 $265.33 $101.0B 49.51"10500.00 $6,69B.90 $1.338.44 22.64%109.00 ($109.00) ($13.00) 100.00%47.00 $183.00 $9.35 5.50%94.00 $411.92 $126.40 31.48"1048.00 $72.00 $33.00 100.00%1.00 ($1.00~ ($1.00) 100.00%43.00 $117.49 $20.93 21.23%22.00 $111.68 $9.40 18.36%55.00 $342.69 $31.33 9.BO%330.00 $3,268.80 $1.015.74 31.53"10

O~II~geer

-{t\ Club

Energy DrInksIce and Water

+ LIquorLoltScr Payout

+ Lottery Scratch Tic...+ Mlsc+ Online Lotto

Online Lotto Payout-I±I Pop

Snuff and CIgars+ Tobacco+ Wine

. .

Paynesville Municipal LiquorDetailed Sales &Margins 2012

Generated On 61512012

:ilte~~a!!1 __~....::-10.99) A~!~jR_~Je Sold Setween 5/26/2011 AND 5/30/2011)----- .'.. ) 2447.00 $25.507.36 $4,770.08 23.31%

1092.00 $13,853.32 $2,289.03 1B.39%25.00 .. $125.00 $130.00 100.00%1.00 $75.00 $0.00 0.00%12.00 $76.40 $19.64 31.60%94.00 $228.45 $106.26 48.97%524.00 $7.044.63 $1,241.00 19.72%25.00 ($25.00) ($1.00) 100.00%41.00 $176.00 $5.99 3.65%105.00 $402.92 $10B.37 29.93%

94.00 $94.00 $25.85 100.00%8.00 ($8.00) ($2.00) 100.00%47.00 $169.69 $32.81 23.49%8.00 $31.92 $5.14 16.23%37.00 $232.03 $25.58 10.54%334.00 $3,031.00 $783.41 26.76%

- OverallBeerClub

.. Deposits ...En8fgyDri~s

+ Ice and WaterLiquor

.. Lott Scr Payout

.. Lotte'Y Scratch Tic...+ Misc+ Online Lotto+ Online Lotto Payout"" Pop

Snuffand CigarsTobacco

+ Wine



" ,. ~SOld Between 5/1/2012 AND 5/31/2012)----10050.00 $105,156.30 $23,108.58 25.890/v4714.00 $60,764.95 $12,245.63 22.00%52.00 $444.00 $326.00 100.00%1.00 $30.00 $67.50 45.00%41.00 $277.39 $97.21 36.01%1.00 $25.00 $25.00 100.00%343.00 $821.47 $354.85 50.52%2042.00 $26,776.97 $5,702.51 23.62%289.00 ($289.00) ($34.00) 100.00%207.00 $763.00 $39.88 5.50%304.00 $1,375.63 $409.79 30.72%284.00 $381.00 $188.00 100.00%18.00 ($18.00) ($7.00) 100.00%232.00 $592.40 $114.12 22.97%80.00 $398.70 $51.80 22.04%0.00 $0.00 ($14.43) 0.00%244.00 $1,529.44 $148.00 9.88%1198.00 $11,283.35 $3,393.71 31.44%

lTJ ~~eJJlII~ 'Seeri ..H/ Club

+ Deposits+ Energy Drinks

Gift Card Sales-I±I Ice and Water

+ Liquor+ LOU Scr Payout

-l±I Lottery Scratch Tic....-l±! Mise

-l±l Online Lotto+ Online Lotto Payout

-l±I Pop+ Snuff and Cigars

-I±I Store Consumable

r{±l TobaccoL-l±J Wine

- Overall+ Beer

ClubI±J DepositsI±l Energy Drinks+ Gift Card Sales

{±I Ice and Water+ Liquor

LOU Scr PayoutLotteryScratch Tic...

-1!I Mise·ffi Online Lotto+ Online Lotto Payout+ Pop

-I±l Snuffand Cigars..I±I Tobacco

+ Wine



. . . Filter:(Date Sold Between 5/1/2011 AND 5/31/2011)-----8824.00 $88,767.88 $18,904.84 24.96%4056.00 $50,178.04 $9,837.47 21.23%46.00 $292.00 $277.00 100.00%0.00 $0.00 $0.00 0.00%44.00 $258.38 $81.67 33.68%1.00 $20.00 $20.00 100.00%224.00 $499.40 $240.07 51.05%1808.00 $24,412.04 $5,155.29 23.61%414.00 ($414.00) ($27.00) 100.00%205.00 $826.00 $39.75 5.00%241.00 $980.41 $267.27 31.50%282.00 $282.00 $92.85 100.00%19.00 ($19.00) ($7.00) 100.00%199.00 $549.09 $117.31 25.21%58.00 $284.67 $38.44 15.66%201.00 $1,258.67 $141.65 11.50%1026.00 $9,360.18 $2,630.08 28.52%



Filter:(Profit ~~r~in .?" ,~Q.~~.~t.l((~ii'.S?!~ Betw~~n 1/1/f012 AND 5/31/2012)~I'III- .__.

39112.00 $382,155.95 $85,676.52 26.63%16494.00 $211,547.98 $42,298.59 22.12%258.00 $2,270.00 $1,892.00 100.00%1.00 $30.00 $67.50 45.00%190.00 $1,189.12 $414.62 37.56%10.00 $240.00 $240.00 100.00%727.00 $1,595.65 $725.22 52.43%7832.00 $102,379.39 $22,917.53 24.68%2519.00 ($2,519.00) ($168.00) 100.00%1277.00 $5,228.00 $301.94 5.69%908.00 $3,836.45 $1,129.79 31.87%1904.00 $2,216.00 $849.00 100.00%188.00 ($188.00) ($40.00) 100.00%812.00 $2,118.72 $399.93 22.88%257.00 $1,181.83 $171.81 18.84%0.00 $0.00 ($14.43) 0.00%941.00 $5,916.75 $579.73 9.96%4794.00 $45,113.06 $13,911.28 31.94%

- OV~IIBeerClubDepositsEnergy Drinks

+ Gift Card Sales+ Ice and Water

-I±l Liquor...J±I Loll Scr Payout

+ Lottery Scratch Tic...+ Misc+ Online Lotto

-1E Online Lotto Payout+ Pop+ Snuffand Cigars

-I±l Store Consumable,m Tobacco+ Wine



Filt~~;~~;ll~~S~';;~/2011A~D 5/31/2011)37324.50 $355,151.17 $73,731.78 24.11%15270.00 $188,091.14 $35,892.76 20.98%271.00 $1,632.00 $1,402.00 100.00%-1.00 ($75.00) $0.00 0.00%214.00 $1,031.99 $336.27 36.77%3.00 $70.00 $70.00 100.00%405.00 $832.03 $413.21 52.18%8088.00 $102,460.70 $21,757.71 21.68%2263.00- ($2,263.00) ($161.00) 100.00%1216.00 $4,240.00 $216.28 5.39%801.00 $3,389.13 $896.89 30.43%1375.50 $1,375.00 $467.20 99.57%160.00 ($160.00) ($33.00) 100.00%940.00 $2.232.64 $506.51 26.08%207.00 $864.78 $123.31 16.54%833.00 $5,167.44 $544.72 11.02%5279.00 $46.262.32 $11,298.94 26.13%

- OverallI±J Beer+ Club

-I±l Deposl1s+ Energy Drinks+ Gift Card Sales

Ice and Water+ Liquor+ Lott Ser Payout+ Lottery Scratch Tic...

Misc+ Online Lotto+ Online Lotto Payout+ Pop

Gl Snuff and Cigars+ Tobacco+ Wine

2012 Liquor Store EventsNumber of Bottles Product Product Food Misc.

Wine Club Customers Sold Tickets Sold Sold Profit Total Income Expense Product Cost Total Expense Total ProfitJanuary 62 94 $ 236.00 $ 966.96 $ 210.87 $ 446.87 $ 28.89 $ 141.08 $ 169.97 $ 276.90February 52 . 40 $ 289.00 $ 419.50 $ 94.70 $ 383.70 $ 65.47 $ 161.09 $ 226.56 $ 157.14

March 52 57 $ 267.00 $ 761.68 $ 154.44 $ 421.44 $ 46.25 $ 37.19 $ 83.44 $ 338.00April 25 33 $ 750.00 $ 353.28 $ 81.47 $ 831.47 $ 505.18 $ 15.29 $ 520.47 $ 311.00May 73 71 $ 444.00 $ 681.23 $ 170.47 $ 614.47 $ 42.04 $ 40.78 $ 82.78 $ 531.69June $ -JulV $ -

August $ -September $ -

October $ -November $ -December $ -

TOTAL 264 295 $ 1,986.00 $ 3,182.65 $ 711.95 $ 2,697.95 $ 687.83 $ 395.43 $ 1,083.22 $ 1,614.73

Other EventsJune Beer Camp $ 162.00 $ 162.00

Rum Night 74 18 $ 284.00 $ 313.02 $ 65.18 $ 378.20 $ 115.65 $ 225.23 $ 340.88 $ 37.32Oct. Beer Camp

TOTAL 74 18 $ 284.00 $ 313.02 $ 65.18 $ 378.20 $ 277.65 $ 225.23 $ 340.88 $ 37.32

GRAND TOTAL 338 313 $ 2,270.00 $ 3,495.67 $ 777.13 $ 3,076.15 $ 965.48 $ 620.66 $ 1,586.14 $ 1,490.01

Consolidated Z Report Number of Registers 2 All Regs Closed! FALSE

Number of Batches 58 EDCClosed! TRUEFor batches closed between 5/2120 II and 6/1/20 1I

Cash In Misc. Department Sales

Opening Total $40.000.00 Total Sales $88.767.88 Department Name SaIel %Sales $89.281.42 Total Tendered $129.149.24 Beer $50.178.04 56.53 %

Neg. Transactions ($513.54) Total Change ($32,371.63) Club $292.00 0.33%

Tax $8.009.73 Over / Short ($4.32) (0.0049%) Deposits $0.00 0.00%

Shipping $0.00 Cost of Goods $69.830.81 78.67% Energy Drinks $258.38 0.29%

Debit Surcharge $0.00 Commission $0.00 Gift Card Sales $20.00 0.02%

Cash Back Fee $0.00 Discounts $3,799.51 4.28% Ice and Water $499.40 0.56%

Paid on Layaway $0.00 Discount Quantity 1925 21.82 % Liquor $24.412.04 27.50%

Paid to Account $0.00 Product Count 8824 Lott Scr Payout ($414.00) -0.47 %

Deposit Made $0.00 Transaction Count 4520 Lottery Scratch $826.00 0.93%

Total $136.777.61 Ave. Transaction $19.64 Tickets

$313.30Mise $980.41 1.10 %

LargestTransaction

Cash Out No Sales 3.92%Online Lotto $282.00 0.32%

177

Paid Out $0.00 Aborted Transaction 39 0.86%Online Lotto Payout ($19.00) ·0.02 %

Dropped $0.00 Item Corrections 95 1.08 %Pop $549.09 0.62%

Layaway Closed $0.00 Returns $412.94 0.47%Snuff and Cigars $284.67 0.32 %

$0.00 Neg. Dollar Items ($435.00) 0.49%Tobacco $1.258.67 1.42 %

Paid on AccountWine $9.360.18 10.54%

Deposit Redeemed $0.00 Manual Inventory $0.00

Closing Total $136,773.29Adjustments

Total $136.773.29

Tender Information Credit Card Detail

Tender Type Qp!m Shift Qme Oyer/Short Card Name C2Ym AmmmtCash $40,000.00 $43.911.75 $83.887.74 ($24.01) Total

Check $0.00 $9,135.54 $9,225.48 $89.94

Credit Card $0.00 $43.525.20 $43,454.95 ($70.25)

Gift Cards $0.00 $0.00 $0.00 $0.00

Offline Credit Card $0.00 $205.12 $205.12 $0.00

Totals $40.000.00 $96,777.61 $136.773.29 ($4.32)

Report Date: 6/5/2012 2: 10:47 PM • Store City: Paynesville

I

Page IOf5~

Discounts By Reason Code Tax Collected

Reason code ~ ~ ~ Tax Name Am2J.!l::It2 $7.00 0.01 % MN Liquor Tax $7,868.48

15% Coupon 2 $5.44 0.01 % MN Sales Tax $/41.2525% 12 $13.44 0.01 % Total $8,009.73

2·6 pk for 12 pk Price 4 $3.98 0.00%

Coded Beer 71 $299.54 0.33%

Discontinued Item 17 $67.86 0.08%

Dontuse 923 $1,819.45 2.03%

Quantity Discount 25 $52.85 0.06%

Quantity Discounts 62 $65.04 0.07%

Sale Price 403 $893.50 1.00 %

Senior Wednesday Discount 3/ $23.80 0.03 %

Test Reason Code 44 $141.06 0.16%

Wine Club 51 $99.96 0.11 %

Wine Tuesday Discount 278 $306.59 0.34%

Total /925 $3,799.51

Payment To

Payout & Drop Detail

Comment Arnmmt DateITlme

Taxable Sales

Description

MN Liquor Tax

MN Sales Tax

NonTaxable

Tax Exempt

Am.mmt$83.920.48

$2,053.76

$2,743.88

$49.76

Report Date: 6/5/2012 2: I0:47 PM • Store City: Paynesville page20~

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Hour of the day

Report Date: 6/5/20122: 10:47 PM • Store City: Paynesville ~/\pag\~

"

:\v~ St~~Consolidated Z Report Number of Registers 2 All Regs Closed! FALSE ~ \ 0

Number of Batches 64 EDC Closed! TRUE ~r \~For batches closed between 5/1/2012 and 6/1/2012 /)..0

Cash In Misc. Department Sales

Opening Total $41,600.00 Total Sales $105,156.30 Department Name SaI§ %Sales $105,820.62 Total Tendered $143,512.48 Beer $60,764.95 57.79%

Neg. Transactions ($664.32) Total Change ($28,904.09) Club $444.00 0.42%

Tax $9,452.09 Over/Short ($22.10) (0.0210%) Deposits $30.00 0.03%

Shipping $0.00 Cost of Goods $81,832.37 77.82% Energy Drinks $277.39 0.26%

Debit Surcharge $0.00 Commission $0.00 Gift Card Sales $25.00 0.02%

Cash Back Fee $0.00 Discounts $3,800.59 3.61 % Ice and Water $821.47 0.78%

Paid on Layaway $0.00 Discount Quantity 2088 20.78% Liquor $26,776.97 25.46%

Paid to Account $0.00 Product Count 10050 Lott Scr Payout ($289.00) -0.27%

Deposit Made $0.00 Transaction Count 5190 Lottery Scratch $763.00 0.73%

Total $156,208.39 Ave. Transaction $20.26Tickets

$1,225.00Misc $1,375.63 1.31 %LargestTransaction

Cash Out No SalesOnline Lotto $381.00 0.36%253 4.87%

Paid Out $0.00 Aborted Transaction 47 0.91 %Online Lotto Payout ($18.00) -0.02 %

Dropped $0.00 Item Corrections 80 0.80%Pop $592.40 0.56%

Layaway Closed $0.00 Returns $628.79 0.60%Snuff and Cigars $398.70 0.38 %

Paid on Account $0.00 Neg. Dollar Items ($307.00) 0.29%Store Consumable $0.00 0.00%

$0.00Tobacco $1,529.44 1.45 %Deposit Redeemed Manual Inventory $0.00

$156,186.29Adjustments Wine $11,283.35 10.73 %Closing Total

Total $156,186.29

Tender Information Credit Card Detail

Tender Type Qpen Shift QQs.e Over/Short Card Name Cmm.t AmmmtCash $41,600.00 $51,297.24 $92,818.38 ($78.86) Total

Check $0.00 $9,024.55 $9,081.31 $56.76

Credit Card $0.00 $54,257.39 $54,257.39 $0.00

Gift Cards $0.00 $29.21 $29.21 $0.00

Offline Credit Card $0.00 $0.00 $0.00 $0.00

Totals $41,600.00 $114,608.39 $156,186.29 ($22.10)

Report Date: 6/1/2012 3:38:44 PM - Store City: Paynesville

Discounts By Reason Code Tax Collect:ed

Reason code Q.t}! I2tal ~ Tax Name .Amm!nt10% Ladies Night I $15.99 0.02 % MN Liquor Tax $9,278.42

15% Coupon 4 $9.00 0.01 % MN Sales Tax $173.67

15% Discount Craft Beer 7 $16.79 0.02% Total $9,452.09

2-6 pk for 12 pk Price 2 $2.00 0.00%

Beer Camp $1.00 0.00%

Coded Beer 48 $281.98 0.26%

Discontinued Item 76 $374.31 0.35%

Ladies Night Coupon 5 $31.20 0.03%

Powerball 1 ($1.00) 0.00%

Quantity Discount 718 $1,242.28 1.17 %

Quantity Discounts 20 $29.00 0.03%

Sale Price 925 $1,511.00 1.42 %

Senior Wednesday Discount 36 $47.24 0.04%

Wine Bags 4 Bottles 35 $37.40 0.04%

Wine Club 45 $41.20 0.04%

Wine Tuesday Discount 164 $161.20 0.15%

Total 2088 $3,800.59

Payout It Drop Detail Taxable Sales

~ Payment To Comment Am.mmt DateLTime Description Am.mmtMN Liquor Tax $98,944.55

MN Sales Tax $2,524.84

NonTaxable $3,686.91

Tax Exempt $0.00

Report Date: 6/1/2012 3:38:44 PM • Store City: Paynesville Page 2 of 5 \J'....

~

Return Detail

Cashier Product description Qt)! Sold price I.1i. B.egJt DateITirnJi:.

Carmen Norstedt Ice 5 Ibs Bag ·1.00 ($ 1.69) 166944 2 5112/2012 12:27: 15 PM

Carmen Norstedt Ice 5 Ibs Bag ·1.00 ($1.69) 166944 2 5/12/201212:27:15 PM

Carmen Norstedt Bud 160z 18 pk can -1.00 ($13.99) 166944 2 5112/201 2 12:27: IS PM

Carmen Norstedt Dailys Frozen Staw/Daq Sing ·1.00 ($1.99) 166992 2 5/12/2012 1:57:21 PM

Carmen Norstedt Seagrams Sangria Cooler -1.00 ($3.99) 166992 2 5112/20 12 I:57:21 PM

Josh Mergen Pepsi 200z -1.00 ($1.55) 165838 5/5/2012 I:22:23 PM

Josh Mergen Black Box Pinot Grigio 3 Ltr ·1.00 ($23.99) 167209 2 5/12/20127:10:31 PM

Josh Mergen Keg Deposit -1.00 ($30.00) 170270 2 5/31120 12 6:07:54 PM

Josh Mergen Keystone Light-24 pk cn -1.00 ($13.99) 170284 2 5/31120 12 6:40:07 PM

Josh Mergen Mich Golden Light 160z 24 pk -1.00 ($21.99) 170284 2 5/31120 12 6:40:07 PM

Lisa Jewell Bud Select 24 pk Bottle -1.00 ($19.99) 165946 2 5/512012 5:56:0 I PM

Louis Baas Coors 12 pk Non Alcoholic -1.00 ($9.99) 165521 2 5/312012 9:09:35 PM

Louis Baas Mikes Hard Variety 12 pk btl ·1.00 ($14.99) \66087 2 5/7/20125: 12:43 PM

Louis Baas Leine Variety 12 pk btl ·1.00 ($12.99) 166087 2 5/7/20125:12:43 PM

Louis Baas New Amsterdam Vodka 1.5L -1.00 ($18.99) 169408 2 5/26/20 12 10:53:00 AM

Stephanie Hormann Bud Select 55 12 pk btl ·1.00 ($11.49) 169161 2 5/25/20 12 5:02:51 PM

Stephanie Hormann Bud Select 55 12 pk btl -1.00 ($10.00) 169161 2 5/25/20 12 5:02:5 I PM

Stephanie Hormann Karkov Vodka Ltr -1.00 ($7.64) 169161 2 5125/20 12 5:02:51 PM

Stephanie Hormann Little Pen Chard 750ml -1.00 ($6.29) 169161 2 5125/20 12 5:02:51 PM

Stephanie Hormann Bogle Chardonnay -1.00 ($\0.99) 169161 2 5125/20 12 5:02:5 I PM

Stephanie Hormann Arbor Peach Charddonay 1.5 Ltr ·1.00 ($7.19) 169300 2 5/25/20 12 7:57:59 PM

Stephanie Hormann Bacardi Gold Rum 1.75 Ltr -1.00 ($22.49) 169300 2 5/25/20 12 7:57:59 PM

Stephanie Hormann E&J 1.75 Ltr -1.00 ($17.99) 169300 2 5/25120 12 7:57:59 PM

William LudWig Busch Light 160z 24 pk -1.00 ($18.99) 166185 2 5/8/2012 3:45:49 PM

William Ludwig Windsor 1.75 Ltr ·3.00 ($47.97) 166374 2 5/10/20 12 9:49:26 AM

William Ludwig $2.00 Lottery Scratch Ticket -1.00 ($2.00) 166395 2 5110/20\2 11:57:22 AM

William Ludwig Kahlua 750 ml -1.00 ($16.99) 167294 2 511412012 10:32:22 AM

William Ludwig Leine Honey Weiss 12 pk btl ·1.00 ($12.99) 167579 2 5/16/20 12 3:38:55 PM

William Ludwig Coke2ltr. -1.00 ($ 1.99) 167579 2 5/16/2012 3:38:55 PM

William Ludwig Winston Lights Box -1.00 ($6.15) 167579 2 5116/20123:38:55 PM

William Ludwig Mich Golden Light 160z 24 pk -1.00 ($21.99) 167579 2 5116/20123:38:55 PM

William LudWig Coors Lt 16gal Keg -1.00 ($89.99) 167678 2 5/17/201211:51:31 AM

William LudWig Keg Deposit -1.00 ($30.00) 167678 2 5117/201211:51:31 AM

William Ludwig Battle Ax Malbec 750ml -1.00 ($11.24) 168543 2 5/2212012 10:48:50 AM

William Ludwig St Gabriel Riesling 750ml -1.00 ($5.99) 168543 2 5/2212012 10:48:50 AM

William Ludwig Alice White Lexia 750ml ·1.00 ($5.24) 168543 2 5/22/2012 10:48:50 AM

William LudWig Dancing Bull Cabernet -1.00 ($7.49) 168543 2 5/22/2012 10:48:50 AM

William ludWig Luccio Moscato d'Asti ·1.00 ($7.49) 168543 2 5/22/2012 10:48:50 AM

William LudWig HobNob Pinot Noir ·1.00 ($7.49) 168543 2 5/22/2012 10:48:50 AM

William LudWig Dancing Bull Zinfandel -1.00 ($8.99) 168543 2 5/22/2012 10:48:50 AM

William Ludwig Three Blind Moose Pinot Grigio ·1.00 ($7.19) 168543 2 5/22/2012 10:48:50 AM

William LudWig Coppola Chardonnay 750 ml -1.00 ($6.74) 168543 2 5/22/20 12 10:48:50 AM

William LudWig YellowTail Shiraz-Gren 750ml -1.00 ($5.24) 168543 2 5/22/2012 10:48:50 AM

William ludWig Red Decadence Red Wine ·1.00 ($9.74) 168543 2 5/22/2012 10:48:50 AM

William Ludwig Grain Belt Premium Light btl -1.00 ($10.99) 168722 2 5123/2012 5: 13:40 PM

Total -47.00 ($628.79)

Report Date: 611/2012 3:38:44 PM - Store Cit)': Paynesville page3~

Negative Item Detail

cm.er Product description ~ Sold price I..1i &gjt PatelTimeCarmen Norstedt Scratch Off Payout 5.00 ($5.00) 166238 2 5/812012 7:30:25 PMCarmen Norstedt Online Lotto Payout 7.00 ($7.00) 166681 2 5/11/20123:58:45 PMJosh Mergen Scratch Off Payout 3.00 ($3.00) 165862 I 5/5/2012 2:44:35 PMJosh Mergen Scratch Off Payout 10.00 ($10.00) 166344 2 5/9/2012 6: 15:39 PMJosh Mergen Scratch Off Payout 8.00 ($8.00) 167604 2 5/16/20125:07:18 PMJosh Mergen Scratch Off Payout 1.00 ($1.00) 167631 2 5/16/20 12 6:35:09 PMJosh Mergen Scratch Off Payout 2.00 ($2.00) 170073 2 5/30/20 12 2:09:09 PMJosh Mergen Scratch Off Payout 3.00 ($3.00) 170310 2 5/31/20 12 8:34:21 PMKayla Loesch Scratch Off Payout 3.00 ($3.00) 169332 5/25(20 12 9:04:26 PMLisa Jewell Scratch Off Payout 4.00 ($4.00) 166469 2 5/10/20125: 13:35 PMLisa Jewell Scratch Off Payout 3.00 ($3.00) 168630 2 5/22/20 12 7:52:09 PMLisa Jewell Scratch Off Payout 2.00 ($2.00) 168640 2 5/22/20 12 8:23:57 PMLouis Baas Scratch Off Payout 6.00 ($6.00) 165823 2 5/5/2012 12:45: 13 PMLouis Baas Online Lotto Payout 7.00 ($7.00) 166089 2 5/7/20125:21:16 PMLouis Baas Scratch Off Payout 2.00 ($2.00) 166792 I 5/11/20126:46:33 PMLouis Baas Scratch Off Payout 60.00 ($60.00) 168197 2 5/19/20 12 I:00:35 PMLouis Baas Scratch Off Payout 2.00 ($2.00) 168200 2 5/1912012 1:03:19 PMLouis Baas Scratch Off Payout 2.00 ($2.00) 169374 2 5/26/20 12 10: 15:43 AMLouis Baas Scratch Off Payout 4.00 ($4.00) /69543 2 5/26/20 12 2:41 :09 PMLouis Baas Scratch Off Payout 20.00 ($20.00) 169869 2 5/28/2012 12: 14:02 PMStephanie Hormann Scratch Off Payout 3.00 ($3.00) 169579 I 5/26120 12 3:22: 12 PMStephanie Hormann Scratch Off Payout 3.00 ($3.00) 169914 I 5/28/2012 4:30:58 PMWilliam Ludwig Scratch Off Payout 10.00 ($10.00) 165272 2 5/2/20 12 12:06:50 PMWilliam LudWig Scratch Off Payout /5.00 ($15.00) 166080 2 5/7/20124:56:54 PMWilliam Ludwig Online Lotto Payout 1.00 ($1.00) 166183 2 5/812012 3:45:06 PMWilliam Ludwig Online Lotto Payout 1.00 ($1.00) 166296 2 5/9/20123: 13: 15 PMWilliam Ludwig Scratch Off Payout 2.00 ($2.00) 166434 2 5/10/20123:32:43 PMWilliam LudWig Scratch Off Payout 10.00 ($10.00) 166648 2 5/11/2012 3:06:48 PMWilliam Ludwig Scratch Off Payout 25.00 ($25.00) 167412 2 5/15/201211:15:16AMWilliam Ludwig Scratch Off Payout 6.00 ($6.00) 167429 2 5/15/2012 1:54:54 PMWilliam Ludwig Online Lotto Payout 1.00 ($1.00) 167716 2 5/17/20123:45:30 PMWilliam Ludwig Online Lotto Payout 1.00 ($1.00) 168782 2 5/24/2012 9:43: 13 AMWilliam Ludwig Scratch Off Payout 3.00 ($3.00) 168787 2 5/24/20' 2 10:07:21 AMWilliam LudWig Scratch Off Payout 15.00 ($15.00) 168790 2 5/2412012 10:1 1:36AMWilliam LudWig Scratch Off Payout 1.00 ($1.00) 168791 2 5/24/201210:17:18AMWilliam LudWig Scratch Off Payout 1.00 ($1.00) 168792 2 5/24/201210:/8:17 AMWilliam Ludwig Scratch Off Payout 20.00 ($20.00) 168795 2 5/24/201210:41:51 AMWilliam Ludwig Scratch Off Payout 1.00 ($1.00) 168982 2 5/25/2012 I 1:23:53 AMWilliam Ludwig Scratch Off Payout 33.00 ($33.00) 168993 2 5/25/20/2 II :55:35 AMWilliam LudWig Scratch Off Payout 1.00 ($1.00) 170005 2 5/2912012 4: 19:20 PMTotal 307.00 ($307.00)

Report Pate: 6/1/2012 3:38:44 PM • Store City: Paynesville

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Hour of the day

Report Date: 6/1/20/2 3:38:44 PM • Store City: Paynesville

City of

125 Pinecone Road North 0 PO. Box 140 0 Sartell, MN 56377-0140Phone (320) 253-2171 0 Fax (320) 253-3337 0 www.sartellmn.com

June 7, 2012

Jack Winter, Fire ChiefJ~ffThompson, Mayor

v'Renee Eckerly, AdministratorCity of Paynesville221 Washington AvenuePaynesville MN 56362~1642

Re: City of Sartell - Verso Paper Mill Explosion

Dear Chief Winter, Mayor Thompson, and Administrator Eckerly:

Our heartfelt thanks to your fire department for the assistance you delivered during the response to theVerso Paper Mill explosion in Sartell. The help we received during this crisis was crucial to our ability toensure public safety and it was also personally humbling and heartwarming.

Although we are uncertain of what if any amount of cost recovery we may attain, we will be submittinga billing for the response effort to Verso Paper. They in turn will submit the expense to their insurancecarrier. The potential for special legislation for State reimbursement assistance will likely also bepursued. As such, in order for us to both create an accurate accounting for the total cost for emergencyservice response and to pursue reimbursement, if you haven't already, we're asking that you pleaseprovide us with your detailed invoice for personnel and equipment at your earliest convenience. Yourinvoice can be sent to: City of Sartell, Attn: Patti Gartland, PO Box 140, Sartell, MN 56377. Regardless ofwhether or not we attain reimbursement from Verso or any other source, please know that we will payyou for any lost or damaged equipment that was incurred by your department in assisting us with thisresponse.

We are proud to live in an area where help like that you provided is sent without question - we will doeverything we can to make you whole and to ensure you know how grateful we truly are.

Thank you,

';#Mayor Emergency Mgmt Director

& Police Chief

Patti GartlandCity Administrator

"A Century of Progress, Welcoming a Century of Promise"