I pledge allegiance to the flag of the United States of America and to the republic for which it stands. One nation under God, indivisible, with liberty and justice for all. >> All right. Anybody have any changes to
the agenda? We're just going to leave seven on there till Okay, there's no changes. We would I'd hear a motion to approve the agenda. >> Make a motion we approve the agenda presented. >> Second. >> We have a motion by Mike, second by
Robins. Is there any further discussion? Hearing none. All in favor, please state I. >> I. >> Anyone opposed, state no. Agenda is carried. Guests in open form. Is there anybody here tonight that would like to address the council?
All right, we'll move on to uh committee reports, presentations, and awards. Budget and finance committee. >> Budget and finance met October 21st. We had some discussions um about the healthcare renewal and the enterprise
budget updates. We'll be hearing those in our executive session tonight. went through our standard financials. Everything looks good. Um, past due notices were sent to 82 properties totaling 25,833 which is fewer properties but higher
value than last year. And that is about it. >> All right. Any questions for budget and finance fire relief? Mark, are you going to do that? >> You bet. Not not too much to update on. We did have our quarterly meeting on the
22nd of October. Primary discussion was around the transition to the parah um plan. So just talking about all the logistics and timing of um the transition with that otherwise just treasures report uh and a few other minor items. So
>> all right thank you very much. Planning commission >> uh planning commission met last Monday. Uh we had a couple public hearings and we're dealing with them tonight on 8 C and D. Uh we discussed the U open seat
and when we're advertising for that to get candidates and then we had an update on uh um development development update on what's going on. >> Okay. Any questions for Mike?
Joint Planning Board. >> Joint Planning met last Tuesday. We heard one setback application and that was overturned. >> All right, moving on to item number seven, the
Guardian Angels conduit debt. >> So, Mayor Coer, city council members, um the council did pass a resolution a couple of meetings ago calling for a public hearing on this night, but the applicant failed to get the notice into the paper. actually was published in the wrong paper, not our paper. That has
been done. Uh it was published on the 1st, I believe. And at that that notice called for a meeting on the public hearing on the 18th. Um that is uh the original resolution that was passed by the council also allowed for a later date than that called for.
So the fact that the notice has now been published that we are announcing it here at this night tonight that that public hearing is postponed till November 18th at 5:00 will suffice for the meeting notice. So it will be on the next agenda. Sounds good.
All right. Moving on to board committee and consultant reports. Wastewater handling agreement with Excel Energy. Mr. Kudson. >> Good evening Mayor and Council. I didn't time that very well. I was kind of behind in my pace. Um, in front of you
tonight, uh, we've got the the RO reject water. Uh, we've been working with XL Energy. Uh, if you want to go back to the, uh, ash leate, uh, agreement, it's it mirrors it very very closely. The the the main difference, uh, two parts. One of them, the the makeup of the water's
slightly different, uh, almost almost identical, but nothing that's going to harm the plant or hurt the plant. Uh, we do have capacity that we could pull this into play. Uh we've been going back and forth with them for probably six months on this thing. Uh the other thing that's that's different is that they're going to work on a direct discharge using one
of their existing sanitary discharge um uh mechanisms at the plant so we can eliminate some of the truck traffic that that's going on. By doing that, we're calling for them to put in we we get to be on site and approve their discharge format. We get to approve the the valve
uh so we can control that valve if we need to shut them down. and we get to control and and uh review and inspect or they they've got to perform the inspections on the flow meters so we know exactly how much discharge is coming into the plant. Uh the one thing that we're looking to do with this
agreement tonight is ask you for we're basically starting this as a trial period and instead of coming back there's there's milestones they have to hit excuse me hit every few weeks uh as we ramp this process up. We're starting with a low uh volume of water and if
they pass all of the parameters of that and things are going well at the plant, we'd give them the green light to increase again. And we do that uh over eight weeks to get it up to full production. They can produce this over the winter while the leech is shut down and we can see how it's going to handle the plant. And then we can slowly feed
Lee 8 back in in the spring to see if it works. what they've asked us to do and we if they're hitting the parameters, we we would want to do this going forward through the the duration of our current uh discharge permit at the plant, but instead of coming back to get a long-term agreement is just to move this
into a permanent agreement if they've hit all of those milestones with staff. So, this agreement then could run concurrent with the expiration of our existing uh permit and then it would be up for review again. So, we did talk this through uh our consulting engineers have been involved from the start. uh
they're supportive of what we're doing. Uh legal has reviewed the agreement and found no issues with that. Uh it creates an opportunity for us. We we're not displacing any future growth or development uh for the community. Uh it's just another way that we can bring in another stream, help one of our partners and and bring in some
additional revenue. Uh the goal with that revenue is to work with finance and offset that for future improvements uh or any plant expansion that we would need to try and get a feeder going on on some of those funds. So, we don't want to cut our chickens before they're hash. If you approve this tonight, we feel pretty positive about what this can do.
Um, but they also know that if there's any negative impact, it's going to get shut down. So, and with that, I can stand for any questions should you have them. >> All right. Any questions for Phil? >> Yeah, we had discussed this at public works also, and
public works committee is in support of it. So, >> correct. Yes. And we appreciate that. Awesome. Well, if there's no further questions, then we would look for a motion on resolution 2586, a resolution accepting a wastewater handling agreement between
the city of Becker and Excel Energy. The Shero RO reject water would be Oh, it would just be appreciated. That's the resolution we're looking for. >> I'll make that motion. >> I'll second. >> Trouble reading tonight. All right, we have a motion by Rick, second by Mike.
Is there any further discussion? Hearing none. All in favor, please state I. I. >> Anyone opposed, state no. Motion carries. Should be all set. Thank you very much for your work on that. >> Thank you guys. >> Uh next up, supplemental letter
agreement with for the 2026 street improvements. Mr. Kudson, again. >> Yes. Thank you, Mr. Mayor. Uh in front of you tonight, we're looking at our this time of year, uh we always bring in an SLA. Um the engineering services uh for our street improvements are outside
the scope of our master agreement. So we need to perform something like this with SE to come in um about three or four years ago. I think uh we worked with budget finance to pull some of our our CIP funding a year earlier so we could get the engineering work started so we
can do some of the the survey work, the top work out in the field. Um and and we're not going out of sequence. We're not asking for next year's funding. We've got it, you know, dedicated this year. So, um with that, we're we're looking to do the same thing again this year to kind of queue up our our street improvements. Um there's already one
underway. We kept uh Edgewood Street separate and the work is already done. Plans are what are we 75 80%. >> 70%. >> Okay. All right. So, I was jumping the gun a little bit. Um but that one's separate. And the reason we're keeping that separate is that's eligible for
MSAS funding. Um, so if we need to go that route, we we'll keep all of that separated. This one is going to be under our standard street levy that we're looking at. So we'll keep this under one separate agreement and we'll code it that way with with finance as well. So the streets that we're looking at doing
this year, um, it's it's a little bit some of our massive stuff is has has been done. So now we're kind of picking apart, you know, what's our ne next top things. We we went through staff has has looked at it several times. Our field engineers have been out here looking at it, confirming what we're looking to do. But the streets that we're recommending
right now uh for reclaim and and and work, Hillrest Road, Pine View Drive from River Street to Rolling Ridge Road, uh street connection improvements to Jade Street and 35th over in the the east side of town. Uh Martin Drive,
Carol Drive, Abbeby Avenue to Laura Circle, Abbeby Avenue, and Twilight Avenue. That'll get that section of town for the most part taken care of with the exception of Laura Circle and Luan Drive and uh we'll look to do that and in probably two years. Uh along with this,
we're also going to include a public public works uh facility, the Gardener Street shop, that new parking lot that's that's being proposed. It'll come from that CIP, but we're going to lump it in with our street projects for economy of scale on that to to take a look at that.
So, uh, also as an alternate, we'll continue it back this year, uh, Birdie Lane. Um, with the change o over at Birdie Lane, we're not sure if the new owner is going to want to have the city perform those services, but we'll bring it into the bid as an alternate so we can show him the cost to build it to our
standards, and we've offered that we can run the project. Uh, it would be a pass through cost. We'll be able to capture all the cost associated with that and do it as a pass through. Um, I think it'd be easier for the developer. uh we've already had conversations uh to that end and we'll see where it goes but we'll hold it as an alternate so the
contractor bidding the the project knows that. So um again this work is is uh for design phase uh engineering the survey work and the bidding process. Should this move forward you you allow us to take the next step and we get it out to bid and we get to award we'll bring back
another SLA for construction management services. Um I don't like to muddy the waters and make any assumptions and and put those dollars out there. We'll do that when the when the project's there. It seems to work well for everybody that way. So again, with that, um I can stand for any questions should you have them. All right. And we have any questions for
Phil? If not, we look for a motion on resolution 2585, a resolution approving a supplemental letter agreement with for the 2026 street improvements. >> I'll make that a motion. >> Second. >> We have a motion by Mike, a second by
Robin. Is there any further discussion hearing? None. All in favor, please state I. I. >> Anyone opposed, state no. >> Motion's carried. Awesome. Thank you very much. Next up, Energy Park 10th edition preliminary and final plat. Mr.
Peterson. >> Uh, thank you, mayor and councel. As you said, it is Energy Park 10th edition that we're here for tonight. It's a preliminary and final plat. Those are attached as exhibit A and exhibit B. Accordingly, the applicants for this were the city of
Becker and Potter Investments LLC. The area of this plat is about 143.85 acres uh within Energy Park. The location of this is uh section 6 uh township 33, range 28 of Sherburn
County. And the zoning is industrial park or IP. In the comprehensive plan, it's guided for industrial and the purpose of this um consolidates multiple parcels into five industrial lots and one out lot for drainage and utility
purposes including a roadway. Um in the past, resolution 2562 did vacate the easements in that area. Just as a note, planning commission did um hold a review of this as well as a public hearing on October 27th of this
year. No written or verbal comments were received and planning commission did adopt resolution PC 2510 for the preliminary plat as well as resolution PC211 for the final plat that we're
recommending approval. Um summary of the findings were that it was consistent with the comprehensive plan and industrial park zoning district. It meets the subdivision design standards of the UDL. provides adequate access to existing and future municipal utilities
and it's compatible with surrounding industrial uses and development pattern. Um and it will not create any undue financial burden or infrastructure impacts. Um and it supports growth in the industrial park or energy park which we're looking for. One thing I did want
to touch on though is we did add one additional condition since planning commission um since the recommendation and that was specifically after talking with public works um as well as we had talked to Mr. Potter himself and made him aware previously. It's regarding the
large pile of tree debris located on the southwestern corner of the of lot 5, the parcel that's being conveyed to the city as part of that land swap. And so it must be completely removed prior to the recording of the final PR final plat um
and execution of the documentation. Um this was added to basically protect the city and ensure that the city gets a clean parcel upon that swap or exchange. Um and it'll be to the satisfaction of city staff, specifically public works on
that. Um, a couple other highlights were all required permits and approvals must be obtained before any work begins out there. Um, city engineer comments must be addressed prior to recording. Um, final plat must be recorded within one year of approval. And, um, any lots
without utility access must connect for city code as determined by staff and the engineer. Um, so with that, staff would be looking for a motion in a second to adopt resolution 2583, approving the preliminary plant of Energy Park 10th, as well as a motion in
a second to adopt resolution 2584, approving approving the final plant of Energy Park 10th edition. Um, and I can stand for any questions on that one. >> All right. Anybody have any questions for Austin? All right. Look for a motion on
resolution 2583 for the pre preliminary plat of energy park 10th. >> I'll make that motion. >> I'll second. >> We have a motion by Robin, second by Mike. Is there any further discussion? Hearing none. All in favor, please state I. >> I. >> Anyone opposed, state no.
>> That carries. And then we would look for a motion on resolution 2584 for the final plat. >> I'll make that motion as well. And I'll second >> motion by Robin, second by Mike. Is there any further discussion? >> Hearing none. All in favor, please state I. >> I.
>> Anyone opposed, state no. That carries as well. All right. Thank you, Austin. And you're up again to talk about cannabis. >> Correct. Um, so this item is for city council consideration of ordinance 298,
second series. And this ordinance would update two sections of city code, specifically chapter 6, section 6.28, which is the cannabis and hemp derived products, as well as article 1, section 1.14.3,
table of uses in the UDL or unified development ordinance. Um, purpose is to align the city code with the latest state law under state statute chapter 342 and um comply with the OCM or office of cannabis management. And this keeps us consistent
um in doing that. And so what we did specifically in chapter 6 is update the outdated terminology to match the new um lower potency hemp edible um verbage that they use and replace some of the cannabonoid terminology to match that.
Um, it adds specifically a new cannabis wholesaler and lower potency hemp edible wholesaler. Um, which are new terms that the state has come up with. And that basically clarifies some of our definitions as well in chapter 6. And
again, we cross cross referenced state statute 342 to match that. That's in chapter 6. And then in the UDO, we updated the table of uses specifically to include cannabis wholesaler and the lower potency hemp
edible wholesaler. Um, which we also did clarify which zoning district those are allowed in. Um, they're prohibited in residential and institutional districts, but they are permitted. Um, as well as some interim use permits in commercial, mixed use, and industrial zone, which is
consistent with the state. um as well as we kept our existing buffers and separation requirements as well. Those are all still in place. Planning Commission did hold a public hearing for this one on that same meeting on the 27th of October. No written or verbal
comment was received. Um and the planning commission unanimously approved resolution 25 PC 259. Um, so with that, I'll stand for a motion in a second or I'll be looking for a motion in a second to adopt Ordinance 298, second series, amending
chapter 6 and article one of the unified development ordinance, as well as a motion and a second to approve the ordinance 298, second series summary for for publication um on November 8th. And then I can stand for any questions.
>> All right. Anybody want to talk to Austin about cannabis? All right. Then we would look for a motion on to adopt ordinance 298 second series amending chapter 6 section 6.28 of city code and article 1 zoning
section 1.14.3 of the UDO. >> I'll make that motion. >> I'll second. Have a motion by Rick, second by Mike. Is there any further discussion? Hearing none. All in favor, please state I. >> I. Anyone opposed state no. That
carries. And then we would need a motion and a second to approve the series summary for publishing. >> And I'll make a motion as well. >> And I'll second. >> Motion by Rick, second by Mike to publish it. Any further discussion?
Hearing none. All in favor, please state I. >> I. >> Anyone opposed state no. That is carried as well. >> Thank you. >> Thank you, Austin. Continue on with the Austin Peterson show number nine.
>> Now we have a housing infrastructure grant acceptance. >> Yes. >> Probably a little excited to talk about this one, huh? >> A little more exciting maybe. >> All right. That's awesome. >> Um so yeah, tonight it's basically to formally accept the Greater Minnesota
Housing Infrastructure Grant Award specifically for the Lann Drive uh infrastructure project or extension. And so the city received notice from the Minnesota housing that Becker was awarded the full requested amount which was $430,325
under the 2025 Greater Minnesota Housing Infrastructure Grant Program. So that funding specifically is going to support Luan Drive to extend it to Edgewood Street Southeast. Um, some background on this is I was here um on
June 3rd um when city council authorized staff to apply for the grant um through resolution P resolution 2546 um which also certified that the city had matching funds available for it. Um the application was submitted on June
12th and on October 28th last week the city was notified that we were selected. Um, Becker's project is one of the 21 awards statewide out of the 48 applicants. Um, the award will fund 50% of eligible construction costs, helping
the city move a key project forward. Um, project extends street water, sanitary sewer, storm, storm sewer, and water main improvements um to serve future residential in that area along the land
drive. Um the extension opens up land identified in the Becker 2040 comprehensive plan for highdensity housing. Um and as we applied for in the grant, it's for potential of about 198 units including affordable and workforce housing housing.
Um and it advances the city's goal goals to expand housing um housing options in the area. And so kind of just a finance p piece of it or budget piece is the total project would estimate total estimated
project cost is $860,650 with a grant amount of half of that $430,325 and that city match covers the remaining costs which are like design um contingency and administrative expenses.
Um some next steps now that we have the award would be staff will coordinate with Minnesota housing and the engineer uh to complete the design and any construction. Um as well as the city will execute a grant agreement um
required before any funds are released. And so with that, I'd be looking for a motion in a second to adopt resolution 2582 accepting the Greater Minnesota Housing Infrastructure Grant Award of $430,325. I can stand for any questions.
>> All right. Anybody have any questions for Austin? >> No questions, but a huge congratulations to you and all the staff that worked on it. I know that was a lot of time, but time well spent. This is a awesome awesome news for the city of Becker and
its residents and that's an area that um we can have some things happening soon. So, thank you very much. >> Yeah, it was definitely a team effort with finance, specifically Lori and Mark and Jacob. So, thank you. >> Hold up.
Can all take a you can all take a lap then a victory lap. All right. So, we need a motion to adopt resolution 2582 accepting the Greater Minnesota Housing Infrastructure Grant for the Luan Drive extension project. >> I'll make that a motion.
>> I'll second. >> We have a motion by Mike, a second by Robin. Is there any further discussion? Hearing none. All in favor, please state I. >> I. >> Anyone opposed, state no. >> The motion carried. We're happy to take the money.
All right. Next up is the consent agenda. Mr. Larude Mayor Cobinger and city council members. Items for approval on tonight's consent agenda for uh review approval and adoption include the revised hiring and termination report, payment of the
bills, the minutes of the October 21st, 2025 city council meeting, the minutes of the October 2nd, 2025 city council executive session meeting. The minutes of the September 15, 2025 fireboard meeting. Change order number 11 for the
police department city hall project for a reduction in the amount of $10,000. Pay request number five in the amount of $90,626.13 to Minnesota Paving and Materials for the 2025 street improvement project. I
would like to add one thing regarding the the revised hiring interpretation report. The police officer is listed there. Um we are very close to receiving all of the stuff or he's meeting all the requirements and we believe all that will be in before the next meeting. Um
so the request for that is a conditional hire provided all of that stuff is received and acceptable. That way he can give notice and get started. So just wanted to make you aware of that. Okay. Happy to answer any questions. >> All right. Any questions for Greg on the consent agenda?
If not, we'd entertain a motion to approve the consent agenda. >> Make a motion we approve the consent agenda as presented. Second. >> I have a motion by Mike, second by Rick. Is there any further discussion? Hearing none. All in favor? All in
favor, please state I. >> I. >> Anyone opposed, state no. >> Consent agenda is carried. We have some anniversary announcements. So, at the community center, we have Amber Gilbertson with eight years of
service and Matt Kren with seven. And the golf course, Kyler Klein with six. And also at the golf course, Jason Sharfenamp, our superintendent with 10 years,
and Chris Listen at public works, 10 years. >> All right. Thanks for being here and being very enthusiastic about that. Thanks to all our employees. We appreciate your continued work for us. Um, I just had a
couple quick things. A big thank you to Shannon. She she beat the uh chickens up this morning. She was up early to come in and help the uh school district with their election. So, thank you Shannon. This was a very long
day for you. Thank you for doing that. Uh last Tuesday I got to go on a little tour with Jacob with the just transition fund. Jacob did an awesome job. Had a tour around Becker and he was also on a panel and I heard many great things and
they said they were going to keep an eye on you Tuesday night at the conference. So told him Jacob can get kind of crazy I figured. So we have like 32 babysitters for him there. Um, so thanks for uh going along with that, Jacob. And
a big thank you to Phil for being at the County Road 23 open house last week. He stood up there and took everything they gave to him and did a very nice job. So Phil, thank you for being there for that. Anybody else have anything that should
come before council tonight? If not, we would entertain a motion to adjurnn. >> So moved. >> Second. >> Second. Got a motion by Robin, second by Rick. All in favor, please state I. >> I. >> Anyone opposed. Meeting's adjourned at
5:28. And we'll take a couple minute break and then get started with the exact session. If anybody'd like to borrow my copy of IQ magazine, you can. You can talk to anybody you want. >> You need info.
>> Figured you needed something. [Music] 290 >> 1275 on the city website the calendar yet. >> No, >> I didn't get one.
>> Oh, thank you. >> First, >> I couldn't remember. I didn't print it. So, did you vote today? >> Got to do your civic duty. >> Do my best. >> I was surprised that I was there about
>> probably 11:00 >> something like that and there was 300 that was 382 which surprised me cuz it's all it is is a school. Mhm. >> And >> where where we vote at? Cuz we vote till 8:00, right?
>> Where is it? At the school. >> No, it's at the community center. >> Oh, it is. Oh, okay. >> That's the official polling place for the city of Becker. Now, >> I knew we did our other ones there, but for some reason, I thought it was at the school, but Okay. >> School doesn't have the space for it anymore.
>> There's quite a bit of traffic coming in and out of there when I left my house. Couple of 15. >> Thank you. Oh, we got >> But all there is is one candidate unopposed and then that >> Oh, it's Renee. >> And then the referendum. Yeah. >> Thank you.
>> Thank you very much. Have a great >> got the new city hall on there. Wow. With the dirt lot. So years ago when I used to design websites, I I got a picture like this. You know, we would we'd be designing for a company and we'd say, you know, send us a picture of your
business and we'll put it on the website. and they sent a picture kind of like this and it had all the dirt and everything and we're like, "Well, you can't put that on your website. You know, you gota, you know, you got to look like a PGA green or something." >> So, I photoshopped in a whole bunch of grass and made it look real nice and
everything. And >> about 3 months later, they called and they're like, "We need you to take the grass out." And I'm like, "It looks great. Why?" They're like, "Well, the problem is it looks so good. It's so different. People drive by the building, they're looking for the green grass. I was going to say you'd get called out
on that real quick around here. >> Must be in the wrong spot. >> Yeah, >> that's funny. >> That is really >> Did you see the pictures of the um graffiti on the park? >> Yes, I did. Right by mouse. Yeah.
>> Two weeks old or whatever park. >> What's that? >> They graffitied up the park. the Pleasant Valley Park. >> Pleas all the new park equipment. >> Oh, yeah. >> Marker all over it. >> Yeah. >> I have an idea picture, but do you? >> I have an idea. >> Okay.
>> Marker across the street from me. >> Right. Well, what do you think? >> You ready? >> Yeah. Let's hit it. >> All right. >> It's good or done. >> All right. It's 5:32. We're going to call the executive session for November
4th to order. And first order of business is the enterprise fund budget. Mr. Evansteiner. >> Okay. Well, Mark >> Oh, sorry. >> Morensteiner. Oh, that's all right.
>> All right. So, um on your agenda tonight, we are going to cover the enterprise fund budgets and their CIP um components. So, um before we do that though, we want to give an update that Robin alluded to. Um last week budget
and finance did meet and um as part of that meeting we talked about the impact of the um change in assumptions for the healthc care renewal. So I know that was a question that this group had like what is the impact to our overall budgets of
the healthc care renewal. So we had that discussion at um budget and finance and brought um the analysis forward to show kind of what the impact was. So overall um the impact of that change in
assumptions is about $216,000. A portion of that goes to the employee cuz they share in that savings. Um so the employer portion of that change is about $180,000.
So um how that breaks out um it's not all levied funds. Some of those funds are not levied. So, if we if we broke that down further, um what we're proposing tonight, what you'll see in the enterprise budgets is to allow that to flow through. We're going to allow
that to flow through the enterprise budgets so their budgets will reflect that reduction. Um and you'll see that detail when Chris goes through that tonight. Um we're also recommending the impact that would go to golf to just
hold. um we don't want to necessarily um put additional strain on their profitability. They brought a budget forward that includes profitability and we want to just respect that and um maybe this helps them get there and and
overperform their budget without adding that additional stress back in. So when we take all that, what's left is about 120,000 that would impact the general fund budget if we determined that we wanted to push that back in. Um, as a
budget and finance um discussion, we really recommended holding the um prelim the preliminary levy where it is rather than um putting that stress back into the budget and reducing that number.
Couple of reasons for that. Um we do believe that next year we will get uh a 15% increase back in that line item and so um this would take that pressure off of 27 um budgeting if we determined that
we didn't want to push that back in. So really, um, it would allow us to let that, uh, savings fall to our general fund reserve at the end of 26, assuming that all of our assumptions are good. And then we could push that back in
through 27 and not um, use that money to offset what might increase in 27 for that healthc care cost. But we didn't want to um we wanted you to have that information, have input on that decision, whether or not you wanted to
put some of it in the prelim or from preliminary to final levy or whether you wanted to hold um but the discussion that we had would would indicate that our recommendation would be to hold the preliminary um general fund budgets and levy where we have them. But certainly
wanted to give you the opportunity for that information and to have input into that um cuz ultimately you are the decision maker. So do you >> anybody have any thoughts?
Robin and I discussed with the at budget and finance and that was um that was where we landed is uh we know you know this year we um due to changing uh providers we got an unexpected drop on it but we you know healthcare is not
decreasing. We know there's one next year. So, if we can keep it to the original projected and then have a safety net for next year, well, safety that we know we'll use pretty much. Um, it'll soften the blow next year. >> Sure. >> So, >> so would that money be earmarked for
that? >> That was our request. Yeah. >> Yeah. >> That it wouldn't just get mixed in with general fund that it actually be targeted for that. >> Makes sense to me. >> Okay. All right. Thank you. Thank you for the input. Um, with that, we will
move on to the enterprise fund budgets. Um, I'm just going to give a hopefully brief overview and then we'll turn it over to Chris, uh, and he can kind of walk you through the details that he'd like to highlight. So, um, what I wanted to start with, uh, it's in your packet is some of the assumptions. Um, the key
ones really are very, very similar to what you saw in the general fund and the other budgets that we've looked at. a 3% general wage um increase with step increases as scheduled. Um the one difference then between the general fund
and the levied budgets is that we are pushing the um healthc care assumptions back through the water and sewer because it's really a the water and sewer budgets are set to hit a cash target and um our rates our rate study um dictates
sort of how what we're going to do with rates as long as we're hitting those cash targets. So we will push those assumptions back through the detail of those budgets. Um Minnesota paid family medical leave will start um next year. So that is budgeted uh for personnel uh
like the other budgets. Um we did plan interest earnings a little bit less conservatively than we have in the past. Um closer to what we're seeing in 2025, but still uh a little bit on the conservative side because we're not quite sure what rates are going to do.
Um but we are we are earning interest on the cash reserves in both water and sewer and so you will see that reflected in their budget. Um on the utility side um electric utilities are an area that this group has really focused on because the um plant the water sewer plant is a
big electricity user. They've done some studies. So, we're we're hoping we're going to see better than what we've planned uh on the electric utility side, but we have um sort of normalized that a little bit from what we've seen in the last couple years.
The utility rate study that we presented a year ago um in 2024 to the council recommended um water and sewer rate changes for the next 3 to 5 years. And so that is consistent with how this budget is put together and that is what
you'll see as an outcome of this budgeting process that we're recommending for the fee schedule for 2026. Um we are um have coordinated with planning and we are recommending extending the sack and wack discount um
for another year and that is what's incorporated in this budget. So, if you should choose not to extend that discount, we would update these budgets to reflect that, but it wouldn't necessarily change the water and sewer rates. It's not that big of an impact, but >> that ends at the end of this year. Correct.
>> It does. It does expire in 1231. So, that's something that the council will, if you're amanable to that, that is what we would incorporate in the rate or in the um the fee schedule. But, it's really open for you guys to have that discussion. Um, one of the reasons we
wanted to do it is because we know that this Lann drive we we didn't have the results um, back from the grant, but we were hopeful that um, that might be something that we could utilize with the developers to kind of help move some of
those things forward to have that flexibility to still offer that. So, that's what's in there. If you >> that would um more I mean if if that would be a 27 project that would I would imagine you would put the street in first then your development would follow
meaning that would be a 27 28 type of project so you'd be talking more than a year at that point I guess was a correct consider >> that's correct this budget just assumes a one-year extension um which probably gives us more time to talk about um what
that project might look like uh over on Lan Drive, but open to your input on that as well. >> That's likely to be a 27 project. So, I Yeah, I think it's something we could discuss further and it doesn't really
have an impact on that development >> if it's a one-year extension. >> Yeah. >> Okay. So, that can come back around when we review the fee schedule. you can have that discussion again and kind of have give me some self some time to think
through it. Um domestic sewer leate fees um we just had um the resolution from Phil on the new agreement. Um what we have planned in there is very conservative. It assumes the same level of leech that we have expect to achieve
in 2025. So the anything above that we would earmark for future plant expansion and try to um keep those funds in a manner that um doesn't necessarily reduce our overall rates to our consumers but saves that money for when
that plant needs to have upgrades or expansions. So it's a it's a rather conservative approach. That was something we had discussed at budget finance too was if that does turn into be a larger amount is that could really offset you know bonding in the future
that you wouldn't have to do there. Um I know in past uh councils have taken some of that leap money and dedicated it outside of the department and I know there's there's been some maybe some tension there that you know one department earned it and everybody else is spending it. So, um this would allow
maybe that to um that money to stay there more, but then you know that that would be your um replace possible replacement, partial replacement of a bond someday because everything out there is really expensive for sure.
>> Okay. Um the industrial sewer budget and their cap plans have already been reviewed in detail with LPI. um we do try to keep them informed of both capital and operational needs and so we have had some productive meetings with them. So the rates that you see here
they they have already um been presented and they um assuming this budget gets approved they would use that for their planning because they are not on a fiscal year plan. So it's sort of a nice opportunity for us to work through that with them. Okay. And then just a couple
other considerations. The 2025 legislature increased the safe drinking water service connection fee. Um and of course it's not divisible by 12. So you will see two different entries on the fee schedule for that. Um that is a pass through it. You won't see it in the
budget but you will see it on the rate schedule because it does impact our rate payers. So, um, and then finally, just the recommended actions that you're going to see in the budget have a 3% annual increase to the monthly service fee rates. Um, those are the ones that
are based on meter size and then a 2% increase in usage rates rates for water and a 5% increase in the domestic sewer rates uh for both the base rate and the usage rates. So, um, that is what we're
recommending. that is completely in line. In fact, that slide is directly out of the last rate study that we did. Um, and that will meet our cash needs for both water and sewer. And then the impact of that action, um, if you look in 2026, the monthly impact to an
average household user would be $34 a month and $3653 a year. So, just to kind of give you uh some parameters on what that means to an average um resident in their bill.
And finally, um page three is the fee schedule um updates that you would see if you adopt this budget in the way that it's recommended. And with that, uh for page four, I'm going to turn it over to Chris. He's going to walk you through uh some of the
um highlights that he wants to point out in his budget. >> All right. Thank you, Lori. >> Good evening, Mayor and Council. Thank you, Lori. Thank you, Mark. Uh I do appreciate financ's help in all this. They do a lot of work. So, um it means I
can keep it brief and answer questions if needed. So, um Lori did a great job of summarizing some of the things that uh you see in the enterprise fund budget here. So uh I'll briefly touch on operating uh costs for each of the budgets. If you have specific questions about line items, you can ask me and I
can go through that. Otherwise, I'll keep it high level. A little more detail on the CIPs, just some movements or changes that we made and then just a summary of what we'll see uh next year when we work on our CIP spends. Um first one is the water operations budget. Uh
as Lori kind of mentioned, uh we look at revenues. We're estimating revenues to be down a little bit in 2026. Uh part of that is she uses the last 5 years of water use for the city. Um in 2024, our water sold was down about 8% from 2023.
So we have a little down year in there bringing the average use down. Uh which means we're expecting a little less in utility fees coming in. And then we also have uh the estimation for the WAC charges is down a little bit uh based on that discount and and what planning is
estimating for 2026. So a little bit less than than last year. Um overall in the operating budget if we look at the expenditure line items kind of outside of depreciation and the capital costs uh the those costs I expect to go up about
1% over 2025. Uh so my math was about 665912 uh for 2026 and in 2025 it was 658396. So a difference of about $7,516. And then as Lauria kind of alluded to
overall for for the water budget uh we estimating that that ending cash value in the water fund would exceed the minimum targeted cash as identified in our rate study. So um so no no big changes in in how we're spending our operational dollars. um you know try to
cover for what we need and and uh and keep it tight if we can. So uh any questions on any individual items there in the operating side or >> any questions for Chris? >> No. Okay. And we'll go to the CIP for
water. So, the first set of the fancy colored pages, little eye candy to keep your attention focused. Um, so our total estimated capital expenditures in the water fund for 2026 would be 598 or $598,000
$100 versus $477100 from 2025. Um, some changes that we looked at in the CIP. Uh, the first one, well number two rehab pump replacement. Uh, so I think it was last year, the year before, we kind of laid out each of our wells and our pumps
so that we can on a timely basis go through that, update the wiring, the pump, and if we need to do something to the well itself, like we redevelop it, we can do that timely. Uh, so we're not doing it on an emergency basis when it fails. Um, staff have noticed a bit of a
decrease in the pumping rate from well number two. Uh, usually we see about 150 gallons a minute. uh they're saying they're seeing more like 125 gallons a minute right now. So, we are going to move that one up from 2030 and address that one next year to make sure we don't
lose volume out of that well. Um right now that's roughly a 17% loss. So, um if we had a whole bunch of other extra wells we could just turn on, that'd be great, but we don't have that option. So, we want to keep this one working as best we can.
Um we have money in the CIP for uh well exploration. Uh you guys are fully aware of some of the work we've been doing to try to find additional wells for the city um with our feasibility study that we're doing with right now uh to try to help figure out if we you know water
treatments the next best step or what we have to do for the city. We want to keep some money available if we decide say we're going to do an iron and manganesees removal plant and we want to have additional wells to go through that we would have some money to use to do further exploration in that area. So, we
did include 70,000 in both 2026 and 2027 to help uh with that means. Uh wellhouse number one, we have a refurbishment project. We've kind of pushed this one a couple of times. Um again, timing is tricky. Uh we don't want to have a wellhouse down and not be
able to use any wells during the summer months because we would be in trouble meeting our needs demands from the city. So, we've kind of pushed this a couple of times, but that wellhouse is uh 1976. So, most of the uh most of the big electrical stuff is the original from
1976. So, it's it's had a good run, but we do want to address that at some point here. So, we'll we'll move that to 2026. If we can get the timing worked out right, we'll try to execute that then. If not, we may have to punt one more time. Uh we had a line item for SCADA upgrades
and enhancements. Uh when I first started with the city, we we had switched from Wonderware to Factory Talk. So that's the program that we use for SCADA for monitoring alarms and those kinds of things. Um the idea was if we had to do that again, this would be in there as as an idea to do that. Uh
I think it it's we've we factory talk is working well. We've updated our our on call uh program. Factory talk. We're updating it currently. Uh I don't the C uh the computers that we use for SCADA we have three of them um with it now those are listed on there so they're
replaced timely through that piece of it. So I don't really have a need to do a complete upgrade of the SCADA system as it is. So we'll push that one out 5 years to 2031 and at that time as we get closer that we can assess and see if there's any bigger upgrades that need to
be done or if not we can continue to push that. Uh tower number one, interior painting that originally was in for 2026. When we did our 2025 inspection of that tower, uh the report that came back, it did not
identify any issues with that interior. Uh no nothing that needed to be addressed immediately. The coatings were still in good shape. Uh there was nothing that needed to be repaired. So we did push that out 5 years. We'll do another inspection again in 2030 and then we can look to see if there's any
issues found then. We would look to address those in 2030 or 2031. Uh we also tower three I originally had the coating of the lower part of of the tower and the upper parts separate. Um as we looked at this year staff kind of
looked at me like why do you have those separate? That should be together. And to be honest I'm not sure if I confused the interiors and separated them or what I did exactly but I it's all together in one now. So I just combined that in the CIP. So, it's a little I don't have them separated and done in different years.
So, uh the last item is the water truck number one. When we did that replacement, uh due to uh the time to get the truck, it actually ended up being a 2021 model year. We estimated a a service life of 8 years on those. So, when we got that as a 2021, we
originally had it to be replaced in 28. We've moved that to 29 to match that service life. And so in 2026, we plan to uh potentially do the uh rehab for well
number two. Uh we look at the some money for possible well exploration if if that is necessary. Um the wellhouse number one or Riley Avenue wellhouse refurbishment. Uh we will install the mixer in the upper bowl of tower number three. This
year we did the number one and number two towers and added the mixers in those. And then we also include uh each year we have PLC replacement. So we've got many PLC's that run all of our different uh you know connect with our SCADA system and relay information back
and forth. Uh many of those are still some of them are still original. So we're getting to the point where they need to be replaced. So in working with finance trying to figure out the best way to do that. We got all the list together. We worked with our integrator. We got pricing on how to replace them. like what would each one cost to
replace? Uh I've got a list and then we decided we would just kind of start taking a few each year instead of trying to do a whole bunch at once and then they all age out at the same time. We got to do a whole bunch again. So kind of spread those replacements out and stay in front of that. And you'll see
that PLC replacement is in all three of the CIPs. So water, domestic wastewater, and uh industrial wastewater. And that's it for the water CIP. Any questions on that one?
>> So, for the the pump uh number two where you said it went from 150 to 125, are we sure that's we we're pretty sure it's a pump issue, not a volume issue? >> We um could be either or. We're not sure yet what it might be. We just see the decrease in the pumping rate now. So,
what we would do is next year we'd work with the a well company. We've used Trout quite a bit in the past, so probably them. But work with a well company, have them pull the pump. They can take that into the shop, assess it, make sure the pump's okay. They can look at the wiring. If the wiring's got an issue, they can replace that. Then they
can put a camera down uh the well and take a peek at that, too. If they see there's issues down there based on that inspection, then we can take steps to try to redevelop that well. >> Yep. Try to cover it all.
So, the interior of towers one and two are lasting obviously more. Is that because we address the thermal stratification? >> I got it in there to see it. >> Nerd. >> I'd love to say yes, but they've only been there a year, so there. But I mean, is that
>> it should Well, it >> something that would protect that. The idea would be that as you if you continuously mix that through, especially the winter months, you're not going to get this giant ice cube that'll move up and down and, you know, peel paint off and or damage metal structure. So, yes, that is one of the reasons why
we add the mixers. Yep. >> If we moved it 5 years, whatever we did must really be working. I mean, the original coating in there must be really good. >> Yep. We got pretty good water, too, so that that helps. >> Okay. >> Yep. We don't get a lot of sediment in towers. That helps. I've been other
cities where you have to do a lot more annual flushing of the tower because you get a large sediment deposit on the bottom. So, we're pretty good that way. >> But, um Yep. >> Awesome. >> Okay. >> All right. Any other questions about
water? >> All right. Sewer next? >> Yep. We'll go on to the domestic sewer first. All right. Right. So again, uh our domestic uh the revenues on the domestic sewer side are similar to the water. Obviously, it's based on uh usage does
have a factor into that. So again, the average over the last 5 years uh is down a little. So we're expecting a little bit there. Um overall the revenue is up for our estimation because we do have the leech coming in. So that does help offset some of that as well. Um
let's see what I have here. Yeah, I think that's enough there. Um, if we look at the operating budget for the domestic side, you know, outside of again the depreciation and the capital costs, the total budget in 2026 is estimated to be about 1% more than it
was in 2025. 2026 the total is 90942 and in 2025 it was 902292. So a difference of about $7,100. So again, not not a huge difference from last year. And again with that uh the sewer budget we again uh the ending cash
in that domestic fund is again exceeds the minimum target cash as Lori has laid out in our rate study. So looking pretty good there operationally. Is there any particular line item there that anybody has any questions about that they would like further
clarification? [Applause] insurance went down quite a bit. Is there re does that usually eb and flow or is that based on usage or >> Well, I mean that's that's property and casualty insurance as part of that, right? >> And then health insurance went down as well.
>> Our property and casualty modifier went down significantly in the for next year. So >> yeah, that was a way better answer. Anything else on sewer for Chris? >> Otherwise, I can do the domestic sewer CIP.
>> Perfect. >> All right. This one isn't quite as fancy color, but it's got a little color in there. All right. We'll go through. So, our total estimated uh capital expenditures for 2026 are looking to be 235,350
uh versus 668580 in 2025. So, not quite as many CIP projects in 2026 as we had this year. A couple of changes to note in the 2026 uh CIP. Again, we had the SCADA upgrades and enhancements. We moved that out to 5 years similar to
what we did in the water. Um at the wastewater facility, we have a workman utility vehicle. It's kind of like a golf cart on steroids. Uh staff use it, go around the plant, collect samples, uh those kinds of things. The original life expectancy was we set when we bought it 12 years. is not really sure exactly
usage and how long it would last. Um, it it gets used, but it also in the winter time we use the toolkit more because it can plow snow and and has a heater. Um, so due to the usage and the current condition of that, we look to extend it out to 15 years life. Uh, move that out
to 2031. So, and then the wastewater facility crane truck, it's kind of similar to that Workman. Um, it's a very valuable piece of equipment for the city. We use it to pull pumps. Uh so we can do our regular maintenance on pumps and or check pumps when they have issues. That being said,
it does not get used a ton, not compared to just a regular passenger truck that you and I would drive around. Um so we decided to move that life expecty from 27 to 2032. So move it out to 20 years total. Uh the truck and crane are in very good shape. We have the crane
inspected annually. Uh it's OSHA requirement, but they check it, make sure it's working. Uh there's no indications that it's it's got any issues that would need uh big attention. The truck is in very good shape. Uh it had just over 25,000 mi on it uh the other day when I checked. So it's got
low mileage. Um yeah. So it it should last us a long time. So So right now we'll look to move that out a little further. >> Is that a diesel or gaser? >> That's gas. Yep. Yep. Uh next items. We've did a little bit of
moving around with some of our our lift station maintenance. So, a couple things I'll just throw out there for you guys' information before I get into what moves we did. Um, staff do an annual lift station inspection every year. So, every lift station in the city gets inspected annually. Um, during the annual
inspection, the pumps are pulled and inspected. So, uh, just look at general condition on the outside. They check all the sensor cables and power cables, make sure there's no nicks or any issues there. Um, they'll tip the pump over. They'll check wear ring spacing and that, make sure that's in good condition. Um, they check the oil. If
it's looks like it needs replacement, they'll replace it. Um, and they also will take a quick look down in the wet well. If it looks like we have a lot of uh debris to collected down there, then they'll take the vac truck out and clean the wet well, which helps keep that abrasive material from going through the
pumps, which can take away from pump life. So, um, that's done annually. Uh, in addition, staff do a monthly check of the lift stations. Uh during the monthly check they uh check the functionality of all the alarms in the station. So make sure it calls out. Uh check the high
level floats, power, no power. Uh they check the UPS to make sure those batteries are in good shape so we get backup signal from the station even if power is not at the station. So that helps keep staff informed if there's something going on. Uh, and then they they pull the for the ones that still
use floats to activate pumps, they pull those floats and clean them because the floats do get some stuff on them that could hinder their their operation. So, monthly they'll clean those. And then finally, we do have staff that go out Mondays and Thursdays and check each lift station. So, Mondays and Thursdays
they go out, they'll record pump run times. They usually run the pumps just to make sure everything looks good, it's not tripped out, check the resets. Um, that way we can watch run times and make sure there's no issues to surprise us and everything's working the way it should. Um, we do have that information
available on SCADA, but I like actually being there and checking it. Feels a little better to me. So, um, we figure twice a week is kind of a good thing. You check it Monday after the weekend, everything looks good. You check it again Thursday before the weekend. Shouldn't have any issues then that way. And we do have alarms at all lift
stations, but those are alarms. They're computers and sometimes they have their own issues, too. So again, not usually, but uh I still like being there. So just wanted you to guys be kind of aware of that if you weren't aware of what we did do to make sure our lift stations are taken care of and operating properly.
With that said, uh lift station 14 uh was due to be a panel and pump replacement in 2027. Uh we did move that up to 2026 based on these inspections. Staff felt that that those pumps needed to be addressed a little sooner. Uh,
lift station 12 pump and panel replacement, we moved that up to 2027 from 2028. Uh, lift station 13 pump and panel replacement, we moved up from up up to 2028 from 2029. And then lift station 15 pump and panel replacement we pushed out
to 29 from 26. Um, so that's more, you know, again based on our annual inspections. What do the pumps look like? What kind of runtime do they have? Obviously the pump run times at every station are going to vary kind of depending upon what flows they get and that kind of thing. So um so just a
little bit of shuffling of the deck there to make sure we're addressing the ones that need attention sooner and the ones that don't we push out a little bit and then trying to keep our spends kind of as a even keel not so much a whole bunch one year and then not much the next year you know nice easy rivers
right and slow. Yep. Okay forget that. Um, so that's all kind of the changes we had from the domestic CIP. Uh, then just kind of the project's plan for 2026. Then, uh, the tool CAD is has gone through its service life and it's due for replacement. That's split between
the domestic and the industrial sewer funds. Uh, domestic headwork uh, building HVAC. So, the MCC room has its own heating and cooling unit. Uh, that's due for replacement. Uh, domestic headworks, the roof on that building uh, it's 08, so that's original. So, that's
due for replacement. Again, we have the PLC replacements on there. Uh, the BOF filter main blowers, we have pushed those out a little bit, but they they're aged. They're from08 as well. Uh, so we'd look to replace those. That's split between the domestic and the industrial. And those again are the units that
basically pull air out of domestic headworks, industrial headworks. We've tapped in now. you can pull air out of the influent lift station and it also can pull air out of the um the um E EQ tanks on the industrial side. So can
kind of pull that air out and it pushes it through a BOF filter uh to kind of clean it and keep those environments okay for operators to be in. Um and then lift station 11 has pump replacement and lift station 14 has pump and panel replacement.
And that's everything for next year for the CAP and the domestic sewer CIP. Okay. Any questions on that? Doesn't look like it. >> Okay. Now we'll go on to the industrial sewer fund.
uh revenues for the industrial sewer fund obviously are based on uh the tier 1 and two rates that LPI pays per thousand gallons that they deliver to our wastewater facility. Um Lori had a a note in in her intro there kind of about the change in those those rates which
was discussed with LPI. Um Mark and Lori have done a really good job uh connecting with LPI, making sure that uh working with me to make sure everything looks good in our budgets. And then we convey that information to Liberty Paper to make sure they're aware of of what we're doing, what our costs are related
to, and why we need uh the funds that we need, and why we charge the rates we do. Um uh one item we can touch on from the the expenditure side, the there's a line item for ditch cleaning. Uh, let's see. Let's do I have a number in here? Line
81. Thank you. I did put in my notes somewhere, but I don't see it. Um, line 81 ditch cleaning. We've kind of played with that number a little bit. Um, so the material that comes from Liberty paper, uh, when the product gets into the ditches, as it gets airrated and moved, uh, there's a tendency for a lot
of calcium carbonate to drop out and we get large deposits in the ditch. So much so that it'll take up treatment capacity. So if you have 600,000 gallons in the ditch, we've had ditches that are probably 50% full with material. So you lose a lot of treatment capacity. Um so
in order to kind of stay on top of that, we like to clean them out. Um the first time we did, I think it was about $54,000 to clean one. So it's a fairly big spend. Uh we were looking to maybe clean one and maybe we could wait a while and clean another one. So we were going to have so much in the budget each
year and then clean one maybe every other year. uh that hasn't worked out quite the way we wanted it to. So this year we cleaned another ditch. This year it was uh right around 70,000 was the estimate that we got to do it. They did a partial clean and then the material got a little wet
so they had to stop. But I think we spent a little over 50 grand cleaning a ditch again this year. So we kind of kicked it back up to the old number. You know, we'll clean one ditch every year until we kind of get on top of it and then we can maybe adjust again. So a little bit of change there which did account for a little bit of increase in
our spend in our operational side. Um I think that's kind of the main things for the revenue and ops budget for uh industrial sewer. Any questions on that? >> Had a question on uh line 18 for the
revenue. Um, so if you kind of track the, you know, the revenue going back there, see, you know, 612, 636, 682, 655. >> Mhm. >> You know, we're 571 right now. You know, we're targeting 771. I guess what do we see as the um the reason for that? What
we think will be the big jump. >> Um, >> well, the flows are pretty consistent from them. So, we're not going to probably see a big change in flows, but we did. So starting the the the rates for both the tier one and tier two will increase partway through the year. So
that's part of that where we would see additional costs or additional revenue coming in from that. >> We we think okay >> uh >> the yeartoate number on here in column R reports nine months not 10. So
>> we did go through their volume projections in detail with them for how much monthly volume they expect to be running. >> But we just try to be pretty straight up with them because they they know they have to pay for the operation.
>> So they know that if their volume is lower then their rate next year is going to be higher because they they're going to we're going to recover the cost for running their facility. So >> yeah, I did have a note in here that's kind of I mean it's obviously our goal with them is it's you cover the cost to
operate the facility. We're not trying to make money off of it necessarily and we can adjust those rates accordingly, but unfortunately costs haven't been going down, they've been going up. So, okay. [Applause]
Now, we'll go to the CIP. All right. Industrial CIP. It's a little bit smaller than a domestic one. Not a ton of changes here. Um, we again we we know the SCADA upgrades and enhancements and moving that out. We kind of talked about the workman utility vehicle that
we're pushing the life of that from 12 to 15 years. So that moves out to 2031. And probably the one item that's specific to the industrial here, uh, we have hanging units in the press building. Uh when those were installed uh we
we let's see the environment in the press building is drastically improved. We the the new uh MAU unit is moving air much better in there. Um when we had the old belt presses it was a very wet moist environment uh hot cold that kind of thing which was hard on any metal
surfaces. So the old hanging units when they were replaced were pretty rough shape. Uh the environment now with the new presses it's much more enclosed. uh we have much less humidity in the building. Uh so things are lasting much longer. Uh so with those hanging units, we did decide to push the life out to 15
years. So extend them by 5 years. So we moved the replacement from 2028 to 2033. And we kind of did re I did some research and a hanging unit they you know anywhere from 15 to 25 years is kind of a common life cycle. So initially we kind of hedged our bets if
if they didn't stand up in the environment very well 10 years. But now that environment is better, they seem like they're staying in better shape. So, we'll push them out a little bit and get some more life out of them. Uh projects planned then for 2026 would
be again the tool cap which is shared between the two CIPs, uh PLC replacements, and then the BOF filter main blowers, which is shared between domestic and industrial. And that's about all I had for the industrial CIP.
Any questions on that one? Looks good. Okay. Thank you very much. Thanks, Chris. You're welcome. >> I'll just touch on one item as Chris was talking about the the CIP for the industrial. Just as a reminder for
council, uh industrial uh the 2016 A bonds that are related to LPI that they pay directly, that final payment will be September 1st of 26. Um so that's coming up soon. It was a 10-year bond. Um, after that, as part of the agreement,
they'll start paying the city an annual, actually be a quarterly capital payment. So, they'll they'll pay us $225,000 annually that'll support capital. So, much like you see the rates um per thousand support operations, there's the
capital contribution that will support capital. So it'll be like $56,250 each quarter that they'll pay that will write into there. Um so that's one thing where uh there's also a minimum. So they'll pay that plus there's a minimum
of $250,000 that's required to be in capital. So through those um kind of semiannual meetings that's a lot of the communication with LPI on what Chris and his staff are identifying as capital needs and then what is necessary to maintain that. So, just wanted to kind of cover a little bit of the the funding piece on the capital side since that's a
little bit outside of just the general piece and not necessarily where we budget for. We're kind of tracking on the back side of some of those minimum cash balances that we need for that fund. >> So, if they're payment if they make the last payment on the in September of 26, when did they actually start with those
56? >> Yep. So, so February 1st 26 would be last payment. So, uh it was agreed Yep. agreed upon that uh second quarter of 26 would be the first payment. We'll invoice them. >> So we'll get three payments in 26 and then we'll continue on the four payments
and um initially we're going to start that balance will start growing but once you get 6 to 8 years out based on some of the projections we'll we'll spend that down and then need some more. So, we'll work with them if they want to pay a little bit more each year to kind of fund that for some of those future years and continue to work with Chris and his
staff as some of those other items come into play on how the facility is performing over time and some of the needs there. So, >> yeah, I think we didn't we was like it was like a 20 year. It was like the first 10 were their payments. Then I think that second 10 was kind and then I think at year 20 was when a lot of 10
years from now I guess that was when we were thinking there'd be a lot of yep >> some bigger hits. Very good. Thank you. >> All right. Thank you. Need anything else on the enterprise fund? All right. Move on to the city
council meeting schedule. Sh. >> Oh, um, thank you for having me this evening. You have before you the proposed meeting schedule um for 2026.
Um, meetings are traditionally held on the 1 and third Tuesday at 5:00 pm. There are a couple of conflicting dates in 2026. So, we're proposing that the conflict on Tuesday, August 4th for National Night
Out be moved the council meeting be moved to Wednesday, August 5th. And Tuesday, November 4th is a general election. So, we're proposing the council meeting be moved to Wednesday, November 5th.
And then there will be two additional proposed meetings in 2026. The annual joint fireboard meeting is set for Monday, July 20th at 8:00 p.m. And with the general election, there needs there's the need to canvas. Um, so that
has been set for Tuesday, November 10th. I think your uh November ones are off a day because today's November 4th, so it would have to be the is it the third? Yeah, I think but we'd be a day off. Yeah. >> November 4th. November 3rd is
>> They're only a calendar if you had a >> Yes, if you'd use your calendar. >> Oh, shoot. What are they? >> The date on here is right. The election date is November 3rd. >> So, it would be Wednesday, November 4th.
See, I'd be on the Okay, the memo has the >> But yeah, the that has >> this has it right. Okay, that's wrong. I'm I didn't read that part. >> Okay, the RCA has it RCA is incorrect, but the actual >> meeting. So, okay. Sorry about that.
Okay. Um, is there anything else? Is >> those are usually the two that we National Night Out and Election Day. Yeah. Oh. Uh, primary day. >> Um, that is the second Tuesday in August
26. So, it did not affect the August meetings. >> All right. >> And there's no canvasing that happens with the primary. >> Is border review considered a council meeting in April? >> I don't think so.
>> No, because that usually isn't set until we don't hear from the county till >> Right. Then we set it when we know for the county sets it. >> Yep. And I think we're kind of wearing like different hats on that one, aren't we? Isn't that like we're actually serving as a board?
>> Yeah. >> Shannon, just for a note, and probably you should have known this a long time ago, our park and wreck meetings are starting at 5:00, not 5:30. >> Oh, okay. >> 5:00 p.m. Okay. Thank you for that. >> Yep.
>> We'll make sure we change that. Thank you. >> All right. Anything else on the council dates? >> Okay. If that's okay, then I'll go on the consent agenda at the next meeting for resolution.
>> Sounds good. >> Thank you. >> Thank you. >> All right. Greg, draft Cuc resolution. >> Yes. I draft is uh at the dis for you. I wasn't here for the discussion at the last meeting, but as I understood it uh
from staff, um the council is looking to come back with a resolution to uh basically support uh those um initiatives. And so I just I I drafted up a resolution. If you want it modified, there's certainly a time to do
that. Otherwise, I would look to put this on the next council agenda along with the attachment from the Coalition Utility Cities for next year's uh initiatives. Sounds good. Anybody have anything else they want in there?
>> So, I know I know originally it was uh Yeah. So, so the county specifically has a, you know, we support nuclear um is a very targeted um type of resolution here, I guess. Would this would this be
of the similar voice but just more items type of >> right? You know, the county is not a member of the CUC. So um we I guess this was really geared towards that the membership and that organization for us and so it is listed there as supporting
and that can be as viferous as we want it to be once we get into session. >> I mean certainly if if that's something you wanted to highlight I can certainly revise a resolution. >> I mean it does I mean it does say it. I
mean it's it's not um we are passing a resolution that does uh you know say we say we would support further discussion about repealing it. Um >> yep. >> So okay that's
you think there needs to be something stronger about that. >> You want to say nuclear >> specifically? >> I mean we have it in here already. I don't know. I mean it does say you Minnesota's moratorum on new new nuclear generation. Um
>> if you want we could not do this as an attachment and I can reorder this list and put it at the top like I know you um because you you had missed the the last one. I mean, we talked about like this the um the one
with those those grants or the >> You're right. >> Yeah. And you know, I mean, if they're there, great. But, you know, to go out and champion them is really hard to do. >> Shouldn't be a second priority. Actually, in my judgment, the first priority is clarifying the statute related energy transition aid and then
it probably becomes the nuclear >> issue. >> Yeah. Yeah, if we're looking for the what we'd like to see the quick hit first, that's I think yeah, the clarification is probably that affects us the most right away. So,
>> um I don't know. I mean, it's a it's a statement, I guess. You know, it's not like it's a anybody's going to march to a different beat of a drum based off, you know, if we reward the statement. But maybe it'll be more personalized for for Becker if I
incorporate these recommendations right into the resolution and say they're ours and reorder because I think that's how Sherburns is right. Theirs is all in the resolution. There's no attachments just there. >> Yeah. It was just literally, you know, the the county does, you know, we host
the SH generating plant, we do this, we support this, therefore, >> I'd be good with that. >> And we could also add to keep the Sherco facility operating. >> Absolutely. >> Yeah. I I' Yeah. >> Yeah.
>> Should we sneak one in there by the post office, too? >> The post office. >> I thought your t-shirts were subtle enough. I >> Okay, I I think I have direction. >> Okay, people good with that?
>> All right, round table. >> I have a question. OMG, Midwest, are we going to be all done with them before they're done? Yeah, for the most part Tony Tony's not here. Comes in the front door though.
>> Need to get that tomorrow. >> I have a little trauma. So, your phone's buzzing. >> Yeah. The the majority of their work in all likelihood what we'll have remaining is a little bit of turf establishment that we can't prove out. It's not seating, so we can't see it. Uh so once
uh probably the end of this week, we'll know exactly where we sit with that and see what that dollar amount is and if we need to to try and negotiate that out of the um of the contract so we can close the contract out and hold that on some sort of guarantee or we don't want to hold a lot of retention if we don't need to. So they can close the books but yet
we're we're satisfied or made hold with it. So I would anticipate by Friday or or Monday that we should know exactly where we're sit but it'll be very very small. >> Okay. >> Okay. Fantastic. Anything else? >> I had three things, Mark. Uh just a
couple uh qu quick things, all of them. Uh we do have our kickoff meeting on the 1025 intersection uh engineering planning uh project uh next Wednesday. So, um we'll have a stakeholders meeting and get the ball rolling on that. We do have a tenative agreement with the
police union for 2027 contract and police union just reached out today and we're working on a date to schedule before year end. >> So >> one year it is a one-year contract. That is correct. Um that's where we ended up largely had to do we proposed a three.
Um we as council knows we're going to be doing the salary study next year and I think we're all kind of like yeah why don't we just see where that is? were all comfortable with the one year. There were a couple of other things uh they they had brought up that we weren't comfortable with. They weren't brought
up in September. They were brought up at a subsequent meeting. And this just provides the opportunity to just step back a little bit and say, "We'll just look at all these things and let's start next July um visiting about these things." So, it is a one-year. They they initially came in with a two-year. So, I
would suspect that we'll either have a two or threeear contract for the council to consider next December. That was it. >> Oh, was that three? >> That was three. Two two contracts. >> Two contracts in the engineering
meeting. That's three. >> Oh, okay. >> All right. Anything from anybody else? Chris, I had a quick question. I got an email today from the state about energy audit grants. Have we ever had an energy audit at
>> uh we did we did work with LTAP and did some energy work. >> Yep. Slide me upside. >> Yep. Um we we did some work with LTAP to do some energy efficiency studies at the wastewater and water facilities. We
worked with Miss Rural Water and did that. I mean, Royal Water had some uh grant opportunities maybe could do for like lighting in one wellhouse and that. We haven't pursued that yet because it's pretty minimal. Um, and then we have we didn't do any grant things through Cascade Energy, but we did apply for
several rebates from some HVAC projects and different things we had hanging out there. And then we did complete the capacitor upgrade on the industrial side, which is addressing the power factory issue that that side had. So, well, we haven't applied for any grants or anything. No. Okay. >> All right. Maybe I'll just forward it to
you. You can look at it. >> Sure. >> Delete it if you want. >> Okay. Sounds good. >> All right. Keep writing your letters. Post office. Um, I did hear that I saw a letter that Senator Kolachar
wrote back to a resident saying she's opened a congressional inquiry into it, which apparently is a good thing. Um, so that that's some one new development.
Um, and my contact in Colorado said, "Well, you know, we're we're looking at things." And I'm like, "Yeah, I'm aware of that." So, that's the other thing he told me. We're going to bring something back. And I said, "When? When?" They don't know that. So,
um, I I think they're feeling some pressure. So, I think it's helping. I don't think the shutdown's really helping us right now because I know a lot of the congressional staff are back home, right? >> Because everybody, it's literally three people making the decision on this whole
thing right now. So, >> yeah, >> everybody else, there's nothing for them to do. So, I got t-shirts in my truck if anybody wants one tonight. All right, we have anything else? All right, we'll adjourn the executive
session at 6:27. Thanks everybody. >> Don't be making noise like that. >> That was Bill >> digging a trench. [Music] >> I see some rain.
Slow down.