Yeah. See how bad videos go. Yes. >> Good. 30 on the dot. I will call the regular city council meeting for Monday, August 11th, 5:30 to order. Roll call, please.
>> Council gr >> here. >> Jarla, >> here. Ecman >> here. >> Absent. Mayor Scott >> here. >> All right. Thank you. Please stand for the pledge. I pledge algiance 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. >> Moving on to the consent agenda. Has everybody had a chance to read through
that? Any questions, comments, anything else for that? Um, hearing none, I will uh ask for a motion to uh accept the consent agenda as is. >> So, we have a motion. Is there anybody that'd like to second or support that?
>> I'll second. >> We have a second from councelor Grahams. All those in favor? >> I. Any opposed? Hearing none. Motion carried. Um, moving on to the guests and does anybody have anything to say?
>> Jot that works. >> Yeah, problem. Well, uh, good evening everybody. So, uh, last council, uh, meeting I talked a little bit with, uh, with Dave and, uh, East Range Water Board over this last few years wants to kind of invite you guys if you'd like to do a site tour of
the East Range Waterboard expansion project, the water treatment plant, and the intake structure. There's been some significant increase or significant work done. So, it' be a good time if you guys are interested to see uh some of the intake site along with the water treatment plant which has had its
precast installed. So, it's kind of neat at this point. You got a little you have more of a structure. You can kind of see some of the workings. So, if you guys are interested, we'd be more than happy to site and Maddie Construction, which is the contractor site would be more than happy to pull some drawings. And so, we're
just going to see if you guys are interested in coming out uh and taking a look at the site. I talked with Bang today on dates. They said anytime after the 20th would be preferred. At that point there would be um not as much construction activity and a lot of the structural components will be tied in.
So the site will be uh pretty safe to access inside the building. You have to go inside the building. We can walk around some of the infrastructure. So anytime after the 20th uh and then the first week of September they have uh the roof going on. So there will be more activity during that week. So you can
shy away from that first week in September. That'd be better. >> Yeah, I think I would definitely be up for doing that. Um I think last time was what sharing date that went. >> Um >> winter
>> winter sound is been a handful of months. So it sounds like we probably done quite a bit of work since then. Um so I for sure would be and I'm assuming other cultures would be too. Um, so what would be the best way of um, setting that up? Just reaching out to city staff and then reaching out to you just to
confirm a date or >> Absolutely. Yeah. If if I can work with just solidifying that. Maggie is just asking for about 48 hours notice. So if we give 48 hours notice, they can kind of clear some of the site stuff and make sure that there's no uh, intense activities that do happen. One other fun
fact is uh, if it is the week of the 20th, the MTV rig that is drilling to the lake is actually going to start. So if you guys are out later in the week, the 20th, 21st or 22nd, you might be able to see some of that would happen to the case unstructured. So
>> sounds good. So yeah, any other counselors that would >> the So the 48 hour notice would not be a problem because if more than you need to post it anyways as a meeting. >> Sure. >> So that would uh give more than the 48
hours to notice. >> Sure. Um, so yeah, we'll we'll hammer out the details and if there's um a quorum, then we'll make sure to post that um so it's all done correctly. Um but yeah, thanks for giving us the opportunity to kind of see where things
are at. So um yeah, we'll let city staff know and um we'll get a hold of it. Sounds good. >> Thank you. >> Um anybody else have anything? None. We will move on to reports from staff. Um, city administrator Wyberg,
>> the only thing I report is um we need to get some special meetings scheduled for budget from the planning meeting. So the the levies due September 30th and we just received before came here the the template for it. So we only get a couple meetings under
next week and mostly the week after or even this week if we can. Sure. >> All right. all the counselors look at your um calendars and then yeah reach out to um Dean Tammy um just letting them know when you're able to meet and
not able to meet. So >> thank you. Um moving on to public works director Snick update. Uh as you can tell the road project uh Kennedy Drive or 110 is back
open for traffic has expensible. Uh they're still continuing some work uh with some utilities and laying the saw. Um at that time Kensington or road 665 the process has started there. The
temporary water service line has been uh hooked up. I believe it's been coordinated. I don't know if it's been charged. So all businesses that run off that uh tent water service um I'll be getting it
off of that. then they can shut down the original water man that's to be replaced. They'll start digging. Um they have to install a valve if I remember correctly. They'll be installing a valve up on the intersection of Dorchester and
665 before they can shut down that main and then progress will start at the Lucky 7 going north and that's how the project will take place. Uh from my understanding they'll be doing it in like one block increments for detours of
traffic so that all residents in Colby Bridge and like Lake View will have access to and from their homes. So just watch for detours to take place if you live in those areas. Um other than that the arena project and many of you might
have noticed the parking lot got milled up today. Um that should be about two weeks uh for that project to be wrapped up as well as the work inside. We're expecting the bleachers or excuse me the
boards delivered this week. Uh the bleachers will be sometime in late September, early October. So everything looks like it should be done and go for hockey season. Um they're still doing some work around that um on the ice
plant. That uh tie in should be made this week from the existing floor that's already been done to the new um ice plant out back that'll be all wrapped up this week. Um, we're finishing up some
of the tree planting that was associated with the uh uh CN Railroad grant that we received for all the trees and shrubs and stuff like that. Uh, that should be wrapped up this week. We're working with the garden club on some of that. And
then I have some upcoming work that we'll be doing with the snowmobile club as they've received grant to finish work on the trail. Penny, I had one question. That temporary water line, does that just service the downtown businesses or will that serve KBY Ridge and Lefield as
well? >> No. Well, Josh might be able to >> the the four residents that are on the far west end there will be service. Um, but everything else will be just regular. So, we'll have to shut them off. So, it'll just be
those last four residents will be on the temp water line. And we're we're not running water line all the way up there. They're just going to tie in to the main right by the road there with the camp water so that someone know how houses their house. >> Okay. Thanks.
>> All right. Thank you. Um Kenny, moving on to public utilities staff. Bend. Not quite the director, but give it up. >> Yes. I don't have too much other than I've just uh since Jake's been gone, just trying to pick up where he left off and uh things have been going fairly
well. Uh pretty busy because we had our other staff room had some vacation planned from before Jake put his notice in. So, uh had a busy couple weeks, but everything went well and things are continuing to go well and I don't have much right now. So, he's good. Thank you.
>> Um city attorney, anything from you tonight? Uh, no update. >> Thank you. Moving on to reports from elected officials. Councelor James. >> Um, nothing to report tonight. >> Councelor Jarla. Um
Dean Jill and I attended the uh East Range PD board meeting tonight and they discussed the fact that they have new tasers, taser 10s now that activate the body camera and they pull them out of the
holster. They're interconnected in that fashion. And you also discussed the new uh policy on public records and what isn't and records availability um how they're going to be able to charge for
passing some of these records out. It's stuff that they've already done, he said. But this way they set the policy out. And I guess part of the reason was he said that the redaction of stuff on the videos could take anywhere from 3 to 6 to 8 hours
>> for the body camera things. Some things the public can get, others they can't. And it's also inter agency stuff. The policy was set up to cover something that's already being done, but this way it's not in a policy. And somebody says that we can't. and he said yes it is
multiply to see if we can charge for this bottle >> um with and you might not know this and that's fine but um like if they have to redact police reports or like body cams is that something that tip has to do or >> basically yeah in house >> so yeah a lot of work for one person
>> yes okay >> sounds good right thank you for the update councelor Iman >> um said we had a public safety board meeting we have a new officer that started on the 9th Um, she's pretty she
was pretty pretty awesome. Um, and then we had national night out on Tuesday. We ran out of food. It was a huge success and it was a lot of fun. >> All right. Thank you. Councelor Max's
not here. Um, yeah, on my end, not too too much to report. Um but just yeah, thank you to everyone that came out um for National Night Out um last week and a big thank you to uh councelor Ecman for organizing that definitely big success. Nice to see everybody coming
out and um supporting each other. So that's it from me. Um moving on to old business 10.1 max grade pay application number 10 um in the amount of $63,859.71. Um, so we had talked about this through
last council meeting. Um, and I'm table that we're waiting on some financial, but >> Oh, uh, so the last pieces of paperwork I did get in from the county and got it submitted down to the state working with
Brandon. We did I worked with him. We got first pay completed uh, sent down again Friday, Thursday afternoon. So it's just a matter of waiting and has to go through their their process and you should be receiving check for about 970 I think 975. So I would feel comfortable
with approving this pay after this. >> Okay. So yeah we were waiting on Tony to do what they need to do to get >> they finally got it done last week and uh was happy to get it simulated as well. and Brandon's been great down at the down at the state as far as walking
through the grant process and getting the state active. So, it's good. >> Sounds good. So, we should be having funds coming our way soon. >> Any other questions or points to discuss before I ask for a motion?
Um, hearing none, I'll ask for a motion to approve that pay application number 10 amount of 63,859.71. Make that motion. >> A motion from councelor Grahams. Anybody that would like to second or support that? >> We have a second from councelor Ecman.
All those in favor? I. Any opposed? Hearing. >> Moving on to 10.2 Verizon land lease agreement. Um, do you mind speaking to this team? >> Yeah. So, this has been on a couple
different times, different meetings. Um, so what he's looking for now, I just got off, he left me a lengthy voicemail here just a few minutes ago and he, you know, we're going to negotiate a lease, assuming we're going to negotiate the lease. The lease amount that they're
proposing is in there and this is going to be a lengthy process, but what he's asking now is if we can at least get a resolution to approve the site plan, which is the last two pages of that. It wasn't really called out. So, so once
you get you're not good tonight, but you might have to go back to planning, but once that part gets approved for the site plan, then they can move forward with the development while we negotiate lease with them. They discussed this side of the road before and then said they were going to build a cross.
>> Yeah. Well, that was originally he John name he talked about the two sites and then when Verizon actually came out they said no I prefer this site so >> so they're back on >> they're back the same side of the other tower
>> I didn't bring that aerial photo but it's you have a copy there >> so it's next to the other tower on both side that falls over >> okay >> so they're originally going to do it on the same side as the recycle now they're going >> yeah I And then they we discuss horizon
like this site better. We we discussed on the other side. So that's their final >> that's yeah we actually the least the lease part can that's going to go back and forth. I'm sure um so we won't do anything with the
land lease agreement tonight. Um so yeah you can is that just your end just continuing to talk with them slashnegotiate. Is there anything in there? Well, actually Joel's going to be involved with something here. >> Is there anything in there about future
rental spots on the antennas? >> That's part of the lease uh negotiation we've been talking. Yeah, I don't I didn't see it in here yet, but >> I I believe um I didn't spend a lot of time reading it, but I did I did go through it and I was just curious is
there's something in there the lease can be re renegotiated, but I understand that some of these power leases 20 and $30,000 a year from now. >> So, we're only getting six for the >> Yeah. And I did >> I did do my own little research on it.
And in rural areas, that's the bottom price. Like rural areas, it seems like 500 bucks is the thing to go. Aurora sold their property, they don't have a current lease. And from what I understand is as they hang more gear off that other one, you get like if somebody else hang some gear on it, we get
royalties or whatever, franchise fees from their that company. you know, I don't know if they has the history behind it, but because I I think that's something the city should be able to >> at least get into, you know, like you said, the royalty fees, if they're
making that kind of money and paying us bottom dollar, we should be earning something outside of that, too. >> I've seen like in hypothetically downtown Minneapolis on top of the IDS, they could be getting like $15,000 a month, but all the stuff on there. Well, there's cities like guys out in the
middle of the country in their back 40. They're probably like 500%. There's cities on the range that have got the antennas on our water. >> Yeah. I can't do that. Yeah. So, more to come on it. Um but keep it
moving forward. He might get this approved and then we can move more into the negotiation of the lease and that's going to take some time. When do they want to start? He didn't believe that they want to start the planning now as far as the
engineering but um and then they got to come up and do testing. Um, so tonight more so just looking at the specs of the last couple pages. >> Yeah, >> I guess on my end I'm assuming page is
you could you could approve it and then upon planning and zoning approval support >> I see no issues with the location. I know there's yeah the two sites we talked about but this is the same side as the other tower
by each other. I don't see you have any questions about the site itself. >> I guess the big the big difference obviously is there's no guidelines or dead layers and it's a small footprint. It's freestanding like say once we get into the lease agreement there's some chill big chill
as well as the council. Um so yeah, we can look at approving it tonight just contingent on planning and zoning also um approving it or we can just send this to them and table it on our end and then have them decide and then send it back to us. Did the council
have any preference on either way you go or we should approve it tonight and then >> I think to speed up the process if we're okay with it we might as well approve on our end and then if they have issues we can always revisit but >> okay
was that this week next week next week. Um, so I think that's a good decision for um and then if it doesn't have anything to do with planning and zoning, they can just let us know and then it just makes things go faster. Um, so
yeah, looking at a motion to um approve um the the specs of the site plan, the site plan um for the um the roads and tower. >> Yeah, I'll make that >> motion from councelor Grahams. Anybody that'd like to second or support that?
>> Um, second from councelor Jarva. All those in favor? I. Any opposed? Hearing none. Motion carried. Um, moving on to new business. Um, resolution 202520
um authorizing negotiation, execution, delivery of governmental lease, purchase of a green master. Um they have any info on this or this this is from a financing company. They need a resolution.
This is their verbage. So it's already getting the paperwork done >> is approved and I budgeted before from what I remember last year. >> So this is so just kind of >> there will be one in next month for
pennies lower to same different financing company but different same procedures. Yeah, with that two already approved it, budgeted for it and so it's just kind of crossing the two dot in my eyes. So looking for a motion to approve
resolution 2025 020 um for the authorizing of negotiation, execution and delivery of the government. >> I'll make a motion >> motion from councelor Eman. Anybody that would like to second or support that
part? We have a support from councs. All those in favor? I. Any opposed? >> Hearing? None. Motion carried. Moving on to 11.2 upgrade of three computers. Um, still on
his 10. And then a quote from BCP was provided. Um, you mind speaking a little bit, Steve? >> So, so there's three computers, mine, pens, and You have to get it on the blight officer's computer that are sitting on Windows 10. It's not going to
be supported after October and it was the budget line item two place this year. As you can see down, I made a note actually there's still 21,000 in the budget for technology as well as 15,000 remaining for capital.
Um so this is currently who supports us currently but we also reached out to get competitive >> kind of find out if we about this upgrade those three computers in the
office three or four >> it is yeah um and then yeah I had questions earlier and I talked to didn't tell me about it. Um, so there's a quote sum summary and then there's optional expenses. Um, we're not thinking that we would need
the optional um pieces of what they um provided in here. So we'd be looking at 5,110 for um the upgrades. But yeah, just in talking with staff pretty important that they have um
working computers because yeah, if they don't they can't do much of any agreement with the accounting, finances, all the other stuff related to our work. So are they replacing anything in the
computers? >> No, that's the I think that's the 500 some upgrade is for software that this is just the upgrade the computers themselves. And that's for all read that 5,000. >> What are the reason I'm asking this? I
was told the same thing that mine I'm I'm a Windows 10 user and I've got to go to an upgrade. They told me they can do the upgrade. Um I've got a computer guy that does a
jump in my system. We just got to go any given the numbers and he goes in there and the cost is nothing with this. I'm just wondering what they're doing to upgrade the computers themselves. >> Yeah. Yeah. That kind of life.
>> This is the computers themselves. Um so I mean change your operating system. It's not changing the operating system. So it's a M70 Gen 5 desktop computers. >> The company's won that 30. Yeah, for the three computers >> itself, right?
>> Yeah. Now, obviously we can we can table this, but um I'm just wondering I can reach out and get some more answers to I have some more questions now as well because then what do they what do they
do then with your old computers if they're coming out of the screen? They sit in the corner like the other computers. >> Okay, I get it. ship involved. >> Is the one used by Flight Officer >> used consistently enough that it does
need to have an upgrade? >> Well, that's a good question. >> Or Yeah. Because I'm still using Windows 10 also on a couple computers. But it's not imperative that I upgrade them. I can work under Windows 10 for the next Yep. for the next five years. As long as they work, but I know as far as you can
obviously you need >> Yeah, I get that. But it it's >> sure >> it looks like it's the whole computer >> for that kind of money has been replaced. >> The tower. >> Yeah. >> Okay. >> So they're not it's just not the Windows
10 to 11. It's these are all complete boxes. >> Yeah, we do have it in the budget. I just, you know, save a little money on anything that um >> yeah, they really need functioning.
>> I guess I I I guess I took this with wording as all they were going to do was replace the Windows 10 11. >> Yeah. >> And that price kind of >> This is hardware, too. >> Yeah. >> If you're doing the hardware,
>> that explains that one. Sherry doesn't really need it. >> Yeah. >> Um so yeah, we can table it for tonight. um and then get some of those questions answered um that you would have Dean and then if we do need to upgrade that I
think >> as long as I had just done I don't think the lights are going to go on >> I remember All right. So, we tabled 11.2. Moving on to 11.3. Hiring team, our
hiring committee um light officer vacant position recommendations. Um so, Dean, myself, and Brent, and we met um with four candidates um a few weeks ago. um
completed so it was prior to water um completed interviews with four different folks for the flight officer position um and then um went through the hiring or went through the interview process um
and then we narrowed it down to um one so with the hiring committee we felt that um Tamika Defo would be the best person for that position um she just has some pretty impressive customer service experience um experience dealing with kind of
people that are frustrated um difficult people um just kind of expressed um getting more involved in the community um and then has some good um leadership and then um recordeping experience which would be um beneficial for the position.
Um yeah, difficult choice. There was four good candidates um but we just felt that she was the best candidate for that position. So, it's so our recommendation that we hire Tama Defoe as the blight officer. >> She working everywhere else officer.
She's sitting right here. >> She does have blade officer experience. >> Um yeah, on Fort Carson, Colorado, I was the mayor of village on post and it's the same aspect that I actually did a lot more than just white. We were in
charge of community fires, community meeting and so on. I've actually done it. >> No fear of walking up and knocking on the door. >> There's no kicking down doors. >> Well, you have the taser tents now. So,
what's that? >> You do have the taser tens. Oh, there you go. Um so yeah, any other questions or points to discuss regarding that? Um yeah, four good candidates. Um difficult decision, but just felt that she was the best
person um for the job. Hearing no other questions or other points to discuss. Um I'll ask for a motion to um offer the flight officer position to Dika Defo um pending background check uh background check and then drug testing. I'll make a motion.
>> Motion from councman. Is there anybody that like to second or support that? >> Second. >> We have a second from councla. All those in favor? >> I. Any opposed? >> Doing none. Motion carried. So, congratulations to Tamika or best of
luck. Um yeah, we're here to support you and so um yeah, you accept the position and um we can dean and yeah, we can talk to you about um yeah, excited to have you jump on board. Um moving on to 11.4
um hiring uh team, public utilities director recommendation. Um we posted internally. Um we had one candidate apply Josh Benda. Um so we had did an interview with him Dean myself and Jill.
Um came in for an interview. Um great experience in um the public utilities realm. Um has worked for the city for a couple years. Um also worked in Aurora Gilbert. Um also some
experience um in the service. Um Jake had recommended that we had hired him when he explained that he was stepping down. Um yeah, lots of great experience in um the public utilities realm of things. Um so we're lucky that he has
put in the offer. Um so it would be um our recommendation to um hire Josh Benda as the new public utilities director. Any other questions or links to discuss? Um, hearing none, I'll ask for a motion
to accept uh the hiring committee's recommendation to hire Josh Penda as the new public's director. So, >> we have a motion from councelor Jarla. Is there anybody that'd like to second and support that? >> Second. >> We have a second from councelor Graham. All those in favor? I. Any opposed?
Hearing none. Motion carried. Congratulations, Josh. Josh, >> you guys appreciate the opportunity. >> Yeah. Yeah. Lucky to have you with us. Um so then I don't know if there's any other sort of >> there will be
something about it. So all right moving on to 11.4.1 posting of water wastewater operator position. Um so Josh moving from his position to the public utilities director. Um that will
open up his um position with the city. Um, so we'll have to be um doing some interviewing and hiring for a new water and wastewater um plant operator. The union said that we could post it internally and externally.
>> I thought I same time. >> Did you get a chance to look at the job description and not >> for the for this >> for Yeah. the waste or water or water and wastewater plant operator.
>> Yeah, I've seen it many times. >> Did you Did you see any sort of >> issues with it? It looks like it's the same one we've had since 2023. Um reading through it is not an expert in that field. I didn't see any big issues or anything that needed to be
updated or changed. Any other points to discuss or any questions for um that vacancy and then posting for it? Hearing none, I'll ask for a motion to
post for the water wastewater plant operator position um internally and externally externally um at the same time. >> Motion from councelor Jarva, second from councelor Grahams. All those in favor I
>> hearing none. Motion carried. Moving on to 11.5. Shannon Sweeney PDA um regarding the temporary financing for the water treatment project. Uh good evening mayor, members of the council. Uh in your packet there was a
letter for me outlining temporary financing for purpose and funding designed essentially the improvements necessary to connect an eastrain water system. Uh I believe the council has previously
received proposals for doing that work and considered it. Ultimately, the budget that was provided was a,490,000 to proceed with design. Vindicated uh that you've studied the
issue, you've identified uh connecting to this system as the best solution for not only being cost effective but also providing the best water quality. And so that being the case, they've indicated
that uh ultimately doing the design in the facility and getting that design certified with the department of health would move the project from a list at the state level with the public facilities authority that just identifies and does an initial ranking
of projects to projects that are in the funding cycle. And so one of the issues that I wanted to work through and we're nearing completion on it is ultimately understanding what our funding plan is for the entire
facility. And so ultimately we've had a couple of conversations with regard to that by me Bolton main staff the funding specialist and myself and uh discussions with Dean as well and the number that
was arrived at oh Thursday of last week I believe or Wednesday was $27.6 million and that included $20.6 6 million of construction engineering costs associated with the treatment facility itself,
$3 million for water storage improvements and $4 million for a facility buy in. On Friday, I was made aware that ultimately the East Range Board has a state appropriation request
that they've made for $5 million that is redundant with some of these items that we have in our buying cost. And so ultimately before we uh size our state appropriation request, I think we need to work through some or have some
conversations with those folks in order to floor aid on where that request is going to come from because ultimately if they were successful in securing their $5 million request, I believe that reduces or eliminates any buyin costs
that they've suggested would be implemented for the project. So, want to make sure we're not asking twice and that we're efficient and are working through that process. But what I wanted to understand as we work through this funding plan is
whether or not uh the existing programs in and of themselves would cover the complete cost of the project. And the ultimately the grant that is most important to us through the public facilities authority is the water infrastructure fund grant.
but that is capped at $10 million. And so we can have access to loans based on our affordability calculation of about $3.3 million. Since the project exceeds $13.3 million, we should be able to qualify for all of
the whiff grant to $10 million with water infrastructure fund grant. And then ultimately I threw in uh uh $750,000 from the IT RB because I expect we'll make a couple of requests of them in order to participate in the project
and it serves a secondary purpose as well. But at the end of the day, I wanted to understand what we would have to request from the state through the appropriations process. And before Friday, it was $13,550,000. I think once we coordinate with at least
range folks uh waterboard folks uh that may go down depending on who makes that request uh for essentially the buying costs. So uh you know ultimately I believe we want to have that coordinated soon. Uh we
have a window to amend the appropriation requests that we already have into the state uh before October. And so I think that's our goal is to identify ultimately what our state appropriation request needs to be based on our project
costs. Understand we're trying to provide some flexibility in these calculations. Uh you know and we talk about water storage of $3 million. We've already evaluated a standpipe project for coding the stand pipe for a
million and a half. $3 million would construct, you know, ultimately what would be a new water tower that would serve the community. Uh engineering staff has indicated that that would be a longerl lasting solution rather than
coating that existing facility. I think it's at this point it's appropriate to it's appropriate to include it as a budget number and at the end of the day when we uh have some success in the appropriation process we can ultimately decide by the scope of
the project whether we're coding a stand pipe or constructing a new water tower. I think it's an option if we can have it we'd like to have it. Uh but we're not promising that you today. We're just saying we're creating some flex flexibility in this budget in order to
hopefully be successful and be able to accomplish things that will uh serve our water needs for a very long period of time. So, because once we go through this process, you're probably not going to want to see us again for a little
while. So um there's you know different ways to approach this process since we are reliant on a state appropriation. Uh you know is it are we required to design the facility at this time because we know we have to
go to the state of Minnesota through a legislative session or two in order to make this request and have it funded. You know, I I would say with the East Range project, they made their initial request for a state appropriation and did not start design
until they were successful in having at least that initial request funded. Recognize they had to go back multiple times after that in order to fully fund the project to their satisfaction. And even at this point, they're still making
additional requests to try to hit the affordability thresholds that were initially presented to them. What designing the facility does do is it probably reduces the timeline for implementation. Uh because at the end of the day, we'll
have it certified with the Department of Health. It will be on the funding list for the public facilities authority rather than the intended funding list. And so it will receive additional consideration with regard to allocating
that with grant when that $10 million is available and ultimately uh you know loans are pretty easy to come by with those folks. So at the end of the day it's mostly the grant that we're worried about. Um
so you know the rationale for for starting the design at this point is you know to be in quue for receiving a significant portion of the grant dollars that we'll be soliciting but understand that it's not all of the grant dollars. This temporary financing under state
statute can be a maximum of three years in term which is what we've structured it at. it can be refinanced one time for an additional three years. Uh and so once we borrow this money for design, you know, we're building a water treatment facility of some kind at some
point. And so because ultimately we need to turn that into long-term financing that we can pay back over time that's hopefully uh funded with, you know, uh more than our fair share of grants that would be available through this process.
And one way to determine that is again to design the facility and make sure the department of health agrees with us with regard to this being the best alternative, the most cost effective and providing the best water quality. So
what we're asking of you this evening, it isn't to uh provide the final commitment for that temporary financing in the process. We're making use of a program that we made use of previously, which is the credit enhancement program uh that's
offered by the state of Minnesota through the public facilities authority. Through that program, we pay a $500 fee and the state provides a limited guarantee to step in if we get the payments that we don't. And that that
ultimately enhances the credit quality of this bond that would be issued and it encourages folks to give us a little bit better interest rate than we'd others be able to achieve if we were just selling this as a general obligation revenue
bond. Uh we do nearly as well but not quite as well. And ultimately we're, you know, we're here to secure the lowest overall cost of borrowing when we do stuff. And that's what that would accomplish. So
uh so if you choose to approve the resolution, we make application to the public facilities authority. We make them fully aware of the project that we're embarking on and we ask for them to approve their
uh their credit enhancement uh being fully understanding what we're about to undertake. And so I think they, you know, well, I know they understand the gravity of that situation and that once we've borrowed, you know, this kind
of money in order to initiate a project that we're going to follow through and that they're going to have to be our partner. And that's what they do uh particularly on treatment facilities. And so if we had any feedback whatsoever that they weren't on board quite yet,
we'd certainly make you aware of that immediately. I don't expect it. You know, ultimately this project is familiar to them, but this certainly puts it on the radar screen making this application to the state. And so, um,
what we would do is once uh once you've authorized that application, we'd come back to you likely at the next meeting with a proposal for the financing from the program lender from Minnesota World Water Association. Uh, so you would see
an interest rate that's that's a commitment from the program lender and it would be that three-year term as I mentioned with regard to how long can we borrow money on a temporary basis. So it' be for that three-year term that would get us through at least
hopefully two state appropriation cycles that which we would hopefully be successful in obtaining that portion that we rely on outside of what the standard programs offer. With that, I'm happy to answer any questions that we have
questions for Shannon. I feel like we've already committed to this project obviously and this is the path we want to take forward. Um, and we've used you guys plenty of times. Trust your opinion. We want to give the best best rate and the best terms we
can. So, yeah, it sounds like the best way to proceed. I don't have any questions at the moment. It's a lot of information, but it seems to be the best path forward. I would make a motion that we go forward
with this. So we have a motion from councelor Jarala to approve resolution 2025 021 approving the issuance of a general obligation water regularly amendment. >> I'll second that. >> We have a second from councelor Eman.
All those in favor? >> Any opposed? Hearing none. Motion carried. All right. Thank you. >> Yeah. And just to be clear, mayor, uh, you haven't issued yet. We have to come back to you proposal. I I know the title
of the resolution. I just didn't want the public to be misled. >> Sure. >> Uh, all we're doing at this time is applying to the program and we'll come back to you in short order with the actual proposal for the financing. >> How long you think that would take?
>> Take to uh I'll send a application to Dean tomorrow. Uh, that's mostly filled out. He'll send it back to me fairly quickly and uh the lender will commit to a rate within 24 hours of that. I've already presented the project.
>> Well, it's good to understand the timing for rate commitment because things are uncertain at different times in this market. But the rate that I've used in the analysis was conservative, meaning it was a bit high depending what I think ultimately the result will be. And so,
uh, we should fix that as quickly as we can. So, we will it'll be we'll know the interest rate uh by Thursday of this week, which is good. >> It's the same process we went through on
the SC project, right? So, you same paperwork. >> Yeah. I've already introduced it to the lender. They've looked over your financials. They they know who we are and what you do. They've funded both the arena project and the most recent road
project financing that we did. Uh they have no concern about looking at you folks. So, and they've been an aggressive bidder compared to others lately. So, so Shannon, you said it's a three-year term basically and then like a three-year balloon and then you can re
renew it one time. Yes. >> What what kind of amortization schedule are we going to get in? Uh what we're doing is we're capitalizing the interest and it's a very good question. We should I should have covered that. Um you're not going to make an out of pocket
payment until you have to refinance this thing. So three years from now we borrow the interest in interest payments during this planning process. So ultimately you can accumulate cash
for other needs in the water utility. you're not immediately being a drain on the system and hopefully some of these grants that we're applying for will be able to pay that construction interest. Uh I would suspect that perhaps ITRD and perhaps
the state appropriation could pay the NR interest but we'll have to confirm that how the legislation's drafted talking to those folks. So those are going to be interest only or no pay whatsoever. is you'll you'll
receive $190,000 roughly in proceeds that will sit in the debt service account and make the interest payments. So, you'll have to physically make the payment, but you'll have the cash from this financing to make that payment. >> We're financing the interest. >> Yes.
>> Yeah. I guess that's what we're doing. >> And it's a typical strategy, but if the council had other wishes and wanted to make our interest payments, we should we could change it. But we typically do this because we're hopeful that at least one of the grants we obtain will cover that cost. And if it doesn't, it'll be
refinanced as part of our loan. You know, that ultimately funds the project. >> And then the affordability, you sure about that a little bit about the 3.3 million cap? >> Yes. Uh we've done some additional work
uh to try to determine how big of a loan state will require you to take on and ultimately uh we have some new debt issued for projects that
we will have outstanding and will be part of our I'll call it an operating cost for lack of a better term but we'll call it an operating cost that at the end of the The state indicates that uh for water for a drinking water
project, your total monthly bill uh the affordability threshold at which their $10 million whiff grant kicks in is $70.58 per month. And I believe Dean indicated you're at about 62
>> somewhere in that magnitude. And so to hit the affordability level from the state, that's about eight bucks a month more on an average bill. And at that, you know, plugging in your existing operating cost,
recognizing that your staffing levels probably won't change. Uh, you know, seeing some savings in chemical cost, but not entirely wiping that out. Uh we believe that when we back into that affordability calculation that your
affordability is for a $3.3 million. Um it was previously estimated higher than that but we been working pretty diligently to try to drive that down to a certain cost. Recognize again
uh East Range folks had an affordability threshold that they were working towards when they did this initial project. uh they chose to afford a larger loan because they worked many years to secure
quite a number of grants, but they made a decision at some point that ultimately they were going to take on additional state loans that would put them above their affordability threshold. And uh that's a decision that the community
could be faced with at some point. I didn't think it was a, you know, an egregious increase. They weren't doubling their affordability threshold or anything of that magnitude. But recognize this is a game of patience and at some
point determining when it's right to implement the project. If you take too long, that affordability threshold might go up. And so they may say he can afford $5 million for example or six million or whatever at that particular time in the
future if our median household incomes continue to go up because it is based on 1.2% of your median household income is how they calculate what their affordability threshold is. And so uh at the end of the day that's how they
view the world and how they put their funding together. The case we're making with regard to our state appropriation request is that state of Minnesota, your existing programs don't help us hit our affordability threshold. That's why we need a state appropriation.
And when they have public hearings on these requests, the first question they ask you is, are are you on the floor, you know, are are you on the intended use plan with the public facilities authority we're applying to and through this design process?
and whether or not uh you're at the affordability threshold, which you certainly mean. So, you can look them in the eye and say, "We deserve a state appropriation for this project. It seems cost effective. It's providing the best water quality and
ultimately we need some additional assistance outside of your program guidelines in order to Anybody else on the council have any other questions or points to just um and then with a motion is it more
appropriate toward it as approval of application to TFA credit enhancement program for that matter? >> I think that be more straightforward copy copy. >> What's that? >> Copy past. Sounds good. It's the same application.
>> All right. Thank you, Shannon. >> Thanks. >> All good. Moving on to 11.6 uh St. Louis County 95% pay request of bid amount for 110 and 665 in the amount
of 817,738.82. Um you mind speaking to this? Sure. Um so this is one one one tenants the 665 project. So it's all the water sewer lines. We already have the funding in the bank for this project. The contract
from St. Louis County is net 35 from date of date of first invoice. got the first invoice what a couple weeks ago and 35 days or I don't know why the invoice but even though they really haven't they just started digging
doing a big part of the project this week they want they're 95% of the full project cost engineered cost. So that's that's what that request is. >> Have funding.
>> The funding's here for Yeah. That's >> project that's been approved already. >> It's just a little hard. We haven't seen a whole lot of work done. So this is >> I guess I didn't put the contract in, but you guys signed it last year. If
anybody wants to see a building and they want to other questions or points to discuss um approve the project we have the funds um so I don't have anything else to
discuss in my hand um so I'm asking for a motion to approve the pay request from St. Louis County um for the 665 and 110. >> Make that motion. >> Motion from councelor Grahams. Anybody that'd like to second or support that? Second from councelor Ecman. All those
in favor? >> I. Any opposed? Hearing none. Motion carried. Moving on to 11.7. Um do you mind speaking to this for the civic system? So this is the the civic symposium basically that I'm going to on
the end of this week but the first two days of the week they're doing a remote online training for new users. So you have civic since 2023 and nobody's really been formally trained in he has system up and running but you know Becky's doing Becky does 10 he has
to do what Tammy does but so this is the first opportunity to get actual formal training from civics for him. So it's two days full days. So they'll be doing the training here in the offices but the city office will actually be closed during the time of training. It should be it's Monday Tuesday that that
>> all three are you going to do that? >> Yeah. Yeah. Yeah. It's free. There's no charge. >> It's all online instructor online. Um yeah, I guess with working with any
sort of program and system, good to know um how to use it. So I would definitely say training especially if they haven't been formally trained on how to do our financing and utility bill
as well, >> right? Everybody does what they what they have to do should be able to do for any cross train. Any other questions or things to chat about regarding that um hearing? None.
I'll just ask for a motion to approve um the city office being for um September 8th and 9th um so city staff can um do the civics training. Motion from councelor Jar. Anybody that' like to second or support that? >> We have a second from councelor Ecman.
All those in favor I. Any opposed? Hearing none. Motion >> car. That should Yeah, we're going to make sure we give this all plenty in advance so people know our city offic website. Um, moving on to the last agenda item
11.8 special budget meeting. S already talked about it, but we're not going to set dates here, but if you give me some dates, times, you know, however we did last year, like maybe not this week or later this week, we do a preliminary one.
Probably one more. >> And then talking with Betsy too, um she mentioned like the the campgrounds needing to >> Oh, yeah. I didn't bring that in here. That's one thing that we need to get a decision on sooner than >> that's more time sensitive. >> And so we need to we need to set rates
for for the campell for next year prior to sending out the >> application >> application for bid not bid but lot >> that can be decided at a special meeting. >> Yeah said that I think they have to go
up in the let's say first week of September. I don't think it was last week. Either way, >> the drawing I think is in September, early September usually the lottery drawing >> and I have some thoughts on rates and we can talk about it there, but I think
it'll be a short discussion. >> Yeah, but that piece that's more time sensitive than the others, but um >> so no motions or anything, more so just discussion. Um, so yeah, if folks on the council can look at their schedules and then shoot um Dean and Tammy emails just
letting them know um when they're available for um a special meeting and I can call back and get everything scheduled. So >> yeah, >> that is it for that. Um moving on to German. Is there anybody
I'd like to make a motion to >> make a motion. >> Motion from council second. Um block. All in favor? >> I any opposed? None. Motion carries. We will throw a couple dates for the end
of this week right now.