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meeting to order. First order of business will be the pledge of allegiance. Please rise if you can. >> I pledge allegiance to the flag of the United States of America and to the republic for which it stands, one nation

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under God, indivisible, with liberty and justice for all. >> Like to welcome everybody to our April 21st general council meeting. We have a lot on the docket tonight, so we jump right into it. Uh we'll do the consent agenda first

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which includes March our March 17th regular council meeting uh April 7th special city council meeting. April 7th council workshop minutes. Request to reserve trail parking and wave the rental fees. Request to approve the cash consulting

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contract and a request to approve the security camera use policy. Uh request to approve the council meeting and reporting policy and a request to approve the purchase of Palm Park benches. Excuse me. And a request to serve alcohol on public shop.

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>> Make a motion to approve the consent agenda as is. >> Second. >> We have a motion and a second to approve the consent agenda. >> Anything else? Otherwise, Delena. >> Hi. >> Vernon. >> Hi. >> Brandy.

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>> Hi. and David will be on Alan Reyes. Next we will go to our public input and just a reminder for some I see some new faces out here. Um just reminder we give two minutes to each speaker. So, please

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be mindful of your time when you come to the lectern, introduce yourself and your addresses. And then uh we do encourage um the audience out here, please um be respectful to the speakers um when they're talking. So, um both council and people online can hear. And we also

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encourage uh the audience when you're speaking, please refrain from attacking uh council members or other members of the public or um city staff. And like I said, we'll do two minutes. So when you see the clock get to about that 150 if you can just wrap up your comments and then we can have the next speaker come

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up. And again make sure you uh when you come up to the lecture you introduce yourself and list your address. Susanna BLC you're first. >> Welcome. >> Good evening. Susanna Bllozic, 1315 County 3 Southwest.

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I want to speak plainly and boldly tonight because the narrative that you've been selling that it is too late to stop the data center development in Pine Island is not true. You say we can't legally stop it. But every step of the way, you've gone out of your way to support and approve all the necessary

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requirements. You say, "We never really knew what we were building, but in emails uncovered under the Minnesota Government Data Practices Act, one of which you received, Elizabeth, the subject line is confidential Pine Island data center." That one is from August

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8th 2023 council. I don't know how much you have known, but I do know that our city administrator knew all along, and we can't reach her because she's so afraid that Pine Island will die by stagnation. If we're not growing, we're dying,

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right? She's instead ruining what makes Pine Island Pine Island. So, I'm appealing to you, council. We do still have the power to say no. We can choose to protect our community and our environment. Progress should not come at the cost of our voice or our well-being.

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And money. Yes, money matters, but it is not everything. We do not want Ryan company sponsoring Cheesefest. We do not want Google giving funds to the Chamber of Commerce. We are not pawns in game where mega corporations pursue growth at all costs. The best predictor of future

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behavior is past behavior. These corporations have shown us again and again where their real priority lies. And it is growth, not humanity. Council, please. This is your responsibility to represent us. Help us. This is your legacy. This is how you will be

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remembered by our town and all the people in it. They write articles about councils like you who don't yet have the courage to stand up and do the hard thing. But you will be remembered for it when you do. It is not too late. You could be remembered for having stood up, for having had the courage and having

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had done the right thing. And we can still stop the data center. Thank you. >> Thank you. >> You here? Not here. Okay, Reverend David Dirkson. >> Yeah, speak louder.

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>> Thank you. >> Welcome, >> Joseik 1315 County Road 3 Southwest. Three things I'd like to address. What is the damage control plan when Google does not adhere to the terms of the tax

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abatement and loses its benefits? effectively leading to $24 million of lost funding to our local school and 3 million to our local Betterment Fund. Remember their approximate $30 million in savings from the tax abatement amounts to 0.000075%

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of Google's market capitalization. How will Pine Island community members feel when they lose those benefits? According to data center watch, 64 billion with a B dollars of data center projects have been blocked or delayed, which amounts to about half of all US data center projects. Number two, heat islands

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around data centers. quote, "Using a data set of land surface temperatures produced by NASA, a research team led by the Department of Computer Science and Technology at the University of Cambridge found from 2004 to 2024, the surrounding areas of more than 6,000 data centers worldwide saw an average

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increased land temperature of about 3.6° F. In certain cases, nearby temperatures increased 16.4° F. Researchers calculated these heat islands could be felt about up to 6.2 2 miles away from facilities impacting up to 343 million

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people globally. End quote. Number three, information that could only be obtained by submitting a state data practices request, which is synonymous with a foyer request at the federal level, uncovered data center and tax abatement discussions leading all the

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way back to 2024. Which leads me to my next question. Why is Rod Steel, our former mayor, who is pro- data center, given special access to privileged information via a non-disclosure agreement that no one else in the Pine

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Island community was aware of? >> Thank you, sir. Rekson right behind you. >> Welcome Reverend David Dirkson. I live at 340 P View Drive Northeast B Minnesota. Tonight I just want to come back to

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where I began a few months ago talking about the golden rule. Do unto others as you have done unto you. It's the bedrock of ethics. And when Jesus talked about it, he was

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saying this to some people that are wondering, "Who is my neighbor? Well, we're your neighbors. We are literally your neighbors. And tonight, I'm sharing some hard

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truths because I've learned some things that have made me very disappointed with my wife's public disclosure, public information disclosure. She found an email which was very disturbing to me. Uh it was an email that dates back to

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February 27th, 2025. This email was sent to the city administrator in the city engineer by Ryan Companies. It was entitled it was had an attachment called Skyway Community Talk points final.

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And in that attachment, there's this question, this answer about this development. And these are the words of the developer, not my words, the developer's words. This is 2025 before we even started the AU process.

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Who is it for? Ryan Companies will be constructing this campus for a single client. A single client. They had a client. It wasn't potential clients. They knew they were making it for a

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client. And we now know that client was Google. So if you knew it was that client, you probably also knew it was going to be a data center. So we weren't working in truth. Is that how you should treat your

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neighbor? Thank you. >> Thank you, sir. Mr. Manners. >> Mr. Lanners. But I don't know if they can hear you. >> Welcome sir. >> You

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broad liners 18 island high court northeast Minnesota. Power to the people not to Google. Proposed data center raises serious concerns. Lies secrecy misinformation

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information have eroded trust in city government. Transparency builds trust. NDAs and project skyway did the opposite. City leaders appear to have been misled or overly influenced by Ryan and Google.

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Short-term financial gains was prioritized over Pine Island's long-term environmental health. Critical details, water, power, waste, noise, and emissions remain unclear. Excel customers are not protected by

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rate hikes. As has been stated, the AU shifted from air cooled no water to water and chemical dependent system. The annual requested 55 million gallons

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of water needed does not equate to the golf course usage of 100,000 gallons as stated. The rush approval process limited scrutiny promised promises to pause were not

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kept. Residents questions have gone unanswered undermining democratic engagement. decisions relied heavily on developer data and limited independent review. A

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hypers scale data center does not fit into a light industrial designation. Communication has been dismissed rather than collaborative. Threats from leadership has raised concerns. Environmental impacts remained

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insufficient. They assessed a full EIS was avoided. Minnesota Center for Environmental Advocacy lawsuit was disregarded. Ordinance were changed to grant a 36 million dollar tax abatement, shifting

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costs to residents and local businesses. Bottom line, your actions have been disappointing and shameful, eroding trust in the process. Residents deserve transparency, accountability, and decisions that generally put the

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community first. Are are you going to send that little email? >> You want to? >> Please do. >> I absolutely will. >> Thanks, Miss Fl. >> Welcome. >> Thank you. Good evening, members and

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neighbors. I just want I'm Sue Linky and I live at 3172nd Avenue Northwest. Is this on? That doesn't sound like it. Can you hear me? >> I am really kind of tired of the us versus them

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rhetoric. We're all neighbors. We're all friends. And I'd like to see us continue on in that energy. I've been alarmed with the covert

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process apparently of the pending project Skyway. This project is a huge step for this small town like us. Like many others, I had not become aware of this project until late in 2025. I get the local newspaper and don't remember

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seeing anything about it before then. I feel like something of this magnitude should have come to the attention of the citizens before any contracts were signed. At a minimum, the press release should have been sent to the paper. But

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the best approach would have been to pause the entire project knowing the magnitude of this thing to present it to the people of Pine Highland with town hall meetings and hopefully brought to a vote by the citizens of Pine Island.

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Now Ryan Industries has apparently has us in a chokeold and the entire project appears to be moving forward with absolutely no recourse. This is beyond disappointing. The people of Pine Island have had no say in this

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project and will likely have no say or reforce if the data center becomes a nuisance. We can't even get any questions answered by the council. Just a sad echo to our cries for inclusion in this extremely

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impactful decision. How can we peacefully come back together as a community? We look to you, our leaders, to lead us to a peaceful, healthy future. Thank you very >> Thanks. Yes.

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Can you introduce yourself and your address? >> Mr. Mayor, esteemed members of the city council of Pine Island, thank you for your time. My name is Kyle Pike. I live at 412232nd Street Southeast in Rochester, about a

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half mile from that tornado on Friday. I have come before you today to address the same thing that many of us in this room are concerned about. This data center project that issued here in Pine Island has been poorly and immorally contrived and its construction must be stopped. You have that in your

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power. We know that you do and you're not going to do anything and we know that months down the road we're going to be aware of how destructive this was and you will live in infamy. Project Skyway is estimated to use up to

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152,000 gallons of water per day. Never mind the ongoing depletion of water in the water table of the township surrounding Pine Island. Heavy agriculture and from industry. Although it is estimated to create a thousand temporary jobs, only about a hundred permanent jobs will arise from this

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construction. The Democrats and Republicans on the Pine Island City Council are effectively giving max massive tax cuts to trillion dollar companies like Google. The city council appropriated, you're good. The city council appropriated the use of

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secretive non-disclosure agreements between city officials Google and the contractors involved in this project. NDAs are a tool used by the billionaire class ruling our oligarchical country like tyrannical warlords who enforce their rule over the wage slaves like us

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and obiscate their devious and sophantic engagements with city officials like you. While these companies pill for our countries of our counties of natural resources, every member of the Minnesota working class should re reject this project on the basis of its immoral and

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compromised origins. The city of Pine Island is not representing the interests of our elected constituency as city council members and city officials advance this project. Heed us on this issue or come election season, we will remember your shameless capitalist

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pilferrings in these chambers and elect representatives who genuinely care for Pine Island, Minnesota, her water and her natural resources here. David, >> welcome. >> Um, I'm David. Um, I'm from Rochester.

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Wait. Oh, okay. Um, so I'm a public sector worker and member of ASME. Um, I'm also a member of workers strikeback. Across the country, cities, counties, and states are rapidly enacting moratoriums on the construction of hyperscale data centers. The Democrats

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and the Republicans on the Pine Island City Council could do this as early as today. But instead, they refuse to do what working-class residents of Pine Island and across southeast Minnesota are demanding they do, which is to immediately halt Project Skyway.

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Greenlighting this project will be detrimental to working-class people in Pine Island and everywhere. And it will also take the environment with it. But this should be absolutely no surprise to working people because both Republicans and Democrats on the Pine Island City

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Council are playing an active role in making sure this project is completed. Both the Democratic and the Republican parties serve the interests of the billionaires and both are allowing data centers like Project Skyway to proliferate around the country. That is

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why I'm also a member of Workers Strike Back, which is a nationwide organization mobilizing working people for an independent fight back against both parties of Wall Street, the Democrats and the Republicans. That's also why we are supporting Shamasant's independent revolutionary socialist campaign for US

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Congress. During her time on the Seattle City Council, Shyama um won the highest minimum wage and uh defeated billionaires to win the Amazon tax. And we need that type of fight back in Congress. To any working class or young person who is here watching this and

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agrees that we need to urgently break from the Democratic party to stop the proliferation of these hyperscale data centers, then I would urge you to join Workers Strike Back down with Republicans and Democrats. We need a party for the working class. Solidarity.

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>> Toby. >> Hello. Welcome. >> Thanks so much. >> Hello again. Uh, I'm Toby. I live in Rochester and I'm also a member of Workers Strike Back, an independent rank and file movement organizing in our

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workplaces and on the streets against the billionaires and their political servants. Myself, along with hundreds of Pine Island residents, both in person and in spirit, are back once again to shame this council for their unfettered collusion with Google, putting the trillionaire tech giants pursuit of

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profit ahead of the people and environment of southeast Minnesota. Data centers today are being used and expanded due to the increasing need for corporate data storage and the advancement of dystopian AI technologies that are designed to increase

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billionaire profits while systematically depriving workers of our basic necessities. One such instance is the pervasive use of AI and health insurance and the denial of care by corporations like United Healthcare. These technologies can be used in even more

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sinister ways like mass surveillance. Companies like Amazon, Microsoft, Google, and Palunteer are all using their data storage and AI tools in part for the Israeli military to track and target Palestinians and journalists in the ongoing genocide in Gaza and also to

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help ICE target and detain immigrants here in the US. Some people will say, "Well, maybe this data center will be used in a better way." But how can working people ensure this? We simply can't because we don't own it. This is one reason why I'm a socialist.

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Workingclass people need to fight for democratic public ownership over big tech and the major energy corporations so that we can decide what is produced and ensure this advancement in technology can be used in the interest of workingclass people and not against

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us. So, one way worker strike back is building the fight against big tech, the billionaires, and the Democrats and Republicans that work for them is by organizing for mass strike action. This Mayday, International Workers Day, on May 1st at 5:00 p.m., we are having a

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rally at Soldiers Field in Rochester. I urge everyone in this room and watching online to come out to hear how we can build this fight back together. Solidarity. Thank you. Bethany, >> welcome.

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>> My name is Bethany von Steinbergs. I live at 48610 Highway 52 Boulevard. I'm a resident of the Pine Island Township. My husband, three sons, farm animals, and I live one mile north of where the proposed data center will be built. Should these quote secretive plans for a

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data center continue to move forward, I will be able to see the footprint from my upstairs window. My biggest concern among many regarding this data center, I can speak to many, is lack of transparency. According to Gallup research, it indicates that transparency is a critical driver of trust,

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engagement, and retention. When political officials, community members, local businesses, and influencers forego transparency and forthrightness by hiding, sugar coating, diluting information, or withholding facts, they make a grave mistake. Immediately, those

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individuals lose trust in their community. They disengage residents and ultimately lose them. They will leave this community with their tax dollars, with their businesses, I have one, and brilliant minds and spirits. Not because of the data center, but because of what

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it represents. Leaders and citizens in a community who didn't care about their people enough to be transparent. Had they not allowed greed, money, status, scarcity to rule their hearts and minds, they would have surveyed, held forums, sent letters, visited

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residents. If this was so good for our town, then let us in on it from the start. Transparency requires work. not just one Facebook post or one line item in a city council meeting agenda. It requires ensuring multiple people from multiple

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perspectives who will be impacted by these decisions have the full facts and are able to ask their questions before you move forward signing agreements. I don't think you understand fully how much you've already broken people's trust. But positively, there is hope.

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Trust can be rebuilt. The exact same thing that you have withheld will help to fix your problem. Transparency builds trust, engagement, and retention. So, do what's right. Own your mistake, apologize, and make amends

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by going back to the drawing board fully transparent. Thank you. >> Hello, Nicole Mills. Are you There you are. Uh Nicole Mills, 12517 New Haven Road Northwest. As this is a recorded meeting and you can watch it 95 times if you'd

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care to, I would love if you would set down your pens and actually look at me while I'm speaking. Yes, >> I'm here tonight to let you know how disappointed I am that you took it completely upon yourselves to make a decision that will have such a potentially lifealtering effect on the

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members of this community. Without true regard for our thoughts or concerns, you have set in motion an irreversible change to the landscape and small town feel of Pine Island. And I am beyond devastated. In my life, I've moved approximately 35

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times. The majority of those moves were not of my choice as I was a child. My history includes four different elementary schools, two different junior highs, three high schools, and two colleges. I swore that if I ever became a parent, I would not do that to my child. At our last home in Rochester, we

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were very happy. We loved our home and that it sat right across the street from our daughter's elementary school. But we gave it up and we moved to Pine Island for a handful of reasons. It was where I found my dream home. It shortened my husband's drive to work and it put me

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closer to the studio I was renting on Main Street. And lastly, it provided a good school system for our daughter, one that she would graduate from because it was the only school system I would ask of her. School change system. For eight years now, we've been settled here. And when I thought about the future, we were

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still here in our future here. The building we purchased to be my studio on Main Street was at last completely renovated to reflect my vision of it. Our home too was still in our future. And why is that? Because I thought I had finally found home. That place I never

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wanted to leave. The place I was finally able to put down true root and relax. Now, thanks to you, it's all changed. Now, when I think of home, I once again see a giant question mark because I no longer see Pine Island in this picture. And I'm angry and I feel so betrayed by

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you. The very people that were elected and or hired to look out for our best interests because a city is its community members. And I don't see evidence that you truly understand that. If you did, you would have asked us if we wanted to live in the shadow of the

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construction process and the existence of this mile and a half long data center campus. and the money. Well, what good are streets of gold if very few want to live here to drive on them? In closing, I want to say I hope you're feeling

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shame around this decision you've made. I hope it's keeping you awake at night as it is me and so many of the people behind me and listening online. Those of us that are now planning a different future in a different city, you did

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this. Never forget that because we most certainly won't. Joyce planners. I called Phoebe. I did not. Is she here? >> All right. If you so they can hear their names, please. Uh, okay. Welcome. And your name and address, please. Phoebe

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Hoff, 12517 New Haven Road Northwest. I'm here tonight to share my thoughts on the arranged hypers scale data center. I'm 15 and I'm a sophomore at Pine Island High School. You can probably imagine my day-to-day agenda is probably similar to your own kids. I get to school early and I stay late to engage in extracurriculars and I have a

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part-time job at the Early Learning Center. I'm proud to be a Girl Scout and help my mom run her photography business. Additionally, I'm a member of the Pine Island Roots and Shoots Environmental Club, which strives to make the difference in our community. All this to say, the city of Pine Island has gifted me with these opportunities to form community bonds, and these

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experiences have shaped me into a passionately driven and opinionated person. If this data center were really for the people, then you would have listened to what the people had to say. The expected time frame for building this data center is 10 to 15 years. I will graduate high school in 2028, and I

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could return home from college in 2032 with a bachelor's degree only to find this center merely halfway completed. I could tell you why data centers are horrible, but I'm sure that after all of this time that you are perfectly well acquainted with the facts. I don't believe this data center will make our

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town more prosperous in the wrong in the long run and in the ways that truly matter. How are you able to justify this insult to the residents of Pine Island? How does the figure on those checks from Google outweigh the potential devastation that you are bringing to your community and the environment? If

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you don't think your actions have consequences on our planet, you're wrong. Our future cannot simply be generated. We share this future, each and every one of us. And even if you won't be there, I will be. And so will your kids and their kids. What kind of world do you want to leave for me? And

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why is it not a better one than the world you were left? Thank you, >> Mrs. L. Welcome. >> The mayor, council, and especially city administrator Elizabeth Howard have done a grave disservice to this community.

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The main role of the city council of which the mayor is a part of is to adopt ordinances resolutions policies and regulations for the health, safety, and welfare of the town and its residents and businesses. Council members are

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elected by the town citizens. Likewise, the city administrator is to be responsible for implementing the policies and goals established by the council, managing city staff and ensuring the cost effective delivery of essential services such as public

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safety, water, sewer, and streets. The city council was is responsible for choosing and appointing the city administrator. As such, the mayor, council, and city administrator are to be upfront with its residents, listen to their concerns, answer questions, do

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their homework to learn the pros and cons of a major project, in this case, the huge data center, and especially to be truthful to its residents. As many of you know, this has not happened with this project from the beginning. First, this project started back in 2023 with

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some of the city residents first hearing about it in September of 25. In fact, most of the residents, even when it was not called a data center, but rather the code words project Skyway were used, no

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mention of a data center was given. When concerned citizens went in to speak with Elizabeth Howard about it, we were told that we had heard and read and researched nothing of nothing but misinformation. When asked what company was behind this

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project, we were told, "We don't know." Another lie. Elizabeth knew from the beginning that it was Google, as evidenced by emails from back in 2023, as found in documents in city hall. Most recently, an injunction was asked for by

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local citizens because the AUA group has wasn't even given the actual numbers of water usage, etc., and there therefore had no idea and shared false information after their alleged study was conducted. They also didn't do due diligence in

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actually verifying this information that was shared to them. They left out other areas of concerns as well. Now, this is where it really gets really good. It's two minutes. >> I know. I'm sorry, but >> my house is a half a mile from this and

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and I need to be able to say what I have because our questions have not been answered. >> You're respectful, please. >> Respect. >> You're welcome to sign up, but it's been two. Everybody had two minutes. >> It does not take long.

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>> No, we can talk afterwards, but In the middle >> in the middle of all this, Miss Howard asked the council for a year of severance pay where if she lost her job and with no discussion >> there, if there's not going to be order

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during the meeting, I suggest that you were we OF COURSE, it always helps WHEN YOU TALK TO EACH COUNCIL. UH, resolution 26-16, which is the leg service line replacement.

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>> Are you taking this one, Elizabeth? >> I'll pass this off on Craig. >> Looks great. >> All right. Good evening, Mayor and Council. So, um, in front of you tonight is, uh, resolution 2616 for your consideration. Uh, this is for the, uh,

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for an application for lead service line funing. So the state has made it a point to uh replace all the lead service and um uh lead and galvanized services in the state and this is uh one round of the funding. The uh city was included on

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the public facilities authorities intended use plan uh for a million dollars worth of funding. So we do have plans um into uh the department of health right now for review. And uh uh by passing this resolution, you would um uh give the authority to the staff to uh

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go ahead and submit the application for the funding. U we're expecting uh plans to be certified by the end of June. And then depending on u uh when that funding becomes available, uh the project may happen this year or may happen next year. And so this would be for 52 lead

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and galvanized replacements. questions on >> and that's and those lines are selected. >> Yep. So, yep. We did an inventory. Uh we started that. We still have quite a few unknowns, but these are 52 that we uh

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are uh pretty certain are lead or galvanized lines. So, yep. Yep. >> Possible grant stuff from the state that lead. >> Yep. So, this application would this would be all grant funding. So, we do have to um the city would have to

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upfront some of the uh uh costs of uh the engineering and that, but once the funding becomes available, we can submit that as a reimburseable. >> Yep. >> Right. Council, this is an action item. Make a motion to approve resolution 660

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legs. >> Second motion has second. Any other discussion? None. Delena. Hi >> Vernon. >> Hi >> Brandy. >> Hi >> and David. You'll be I >> thank you.

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>> Thanks. >> And we have some exciting news. We got lo English development agreement. Finish taking this. Are you Stephen taking this one? >> Um yep. So before you in the packet here we have a development agreement um that

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is proposed for a new business moving to town. Um Logic of English. Um they specialize in um English curriculum resources um books, flashcards, things of that sort. They've been operating out of Rochester um recently. They're looking to upgrade the size of their

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facility, um bring all their material printing inhouse, um and they found a property here in Pine Island that they're hoping to get started on here soon. Um usually you'll see these development agreements when we're platting property. Um in this instance, they are just purchasing a single parcel, leaving it as a single parcel.

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there's no additional subdividing going on. Um, but we thought it would be a good idea to um just include the property in a development agreement just to lay out some terms when it comes to um kind of some of the storm water infrastructure that's on there as well

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as um you do have as a a handout here a letter from um the logic of English team um just looking for a waiver of the water, storm water, and sewer access fees um that they'd be subject to for building on this property. um they're

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just requesting, we had discussed with them um requests for um tiff abatement, things like that. None of those really fit what they were looking to do. Um they're looking for more of uh more relief up front so they can get their building running and get all the equipment in there. Um they're hoping to

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be uh up and running by the end of the year. We'll see um if we can get that rolling. So um Bob and uh Craig looked over this agreement. If they have any comments, I'll open it up to them. >> Yeah, mayor and council. Uh the form of

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agreement, as Stephen said, is is our typical uh development agreement. Of course, development agreements that we do are most commonly associated with subdivisions of land, right? When a when a party owns land, they want to develop, um a development agreement relates to

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the development improvements typically. So, we use that as the form of agree. Ste Stephen had the idea of using that as a form of agreement and I agreed with that approach. It's not a perfect fit in the sense that this property isn't being subdivided, but it has other elements of a typical development in that there are

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development fees to pay and there are some development related changes to the property, obviously development of the private improvements. So anyway, so I'm just telling you that all as background. This is our standard form of agreement. It just has a few of the provisions removed from it that wouldn't apply here

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because this isn't a subdivision of land into multiple lots. It's just the development of one existing parcel. So, but otherwise it's your it's your standard agreement essentially. >> Excellent. And the property that they're looking at in the public works, does it

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have access from that road or both roads along the cemetery road? Um, so I believe they'll have access to both. Um, I believe the way it's laid out is they will have an employee parking lot that will have access off of Third Street um,

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kind of by the cemetery there. And then they will have access um, across from the shop, across from Trail Head Grill on Third Avenue for um, their loading docks for their semi-truckss um, and other carriers. I know they do a lot of

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shipping with the U, USPS and FedEx. Um, we did speak with them about that access point, wanting to make sure that trucks weren't stopping on Third Avenue, um, or blocking any any roadway there by the shop or by Trail Head Grill. Um, so they do have the building set far enough back

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that if trucks do have to come in, turn around, or do any three-point turns or anything like that, it can all be done within their own line, so they're not blocking any of the public road. I was just thinking too maybe from the standpoint of road reconstruction because I know that road's in tough shape and you know like across from the

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public works repair that one probably will need to be redone soon and wanted to make sure they still have access for their business maybe the other way. >> Yep. So just like any other property owner on there if we were to go through with a street project there and choose to assess the property owners they'd be

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assessed the same based on whatever our assessment policy is at that time. It's a good question. Anything else? Otherwise, we will take I'll make a motion to approve the

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logical English development agreement sac motion and second. Any other questions? Otherwise >> no this is not public in we have a

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motion and second any other discussion >> I >> Randy >> I will be file >> brings us to our next item which is a pine perry development agreement >> so this one is a little bit similar um

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this is more common for what has come before you in the past um so back In March, a final plat was approved um for Pine Prairie Third. This is an addition to um the housing development down by the elementary school off of New Haven Road. And more similar to our standard

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development agreement, this one includes um the provisions about the improvements to the public street um the utilities that will be laid um in that right of way. Um so again, this lays out um those public improvements as well as those

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whacken sack fees. Um, one addition we made to this is there, um, as part of the first two phases of the development down there, there was to be a pedestrian path, um, constructed along New Haven Road there that would connect to, um, the Douglas Trail. And so, there is

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language in here um, setting a date that that trail has to be completed by. Um, if it's not completed by that date, the city can construct that trail and then um, build the developer for that. So, we've been in touch with them and they have every intention of completing that by the deadline we have laid out in

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here, but we just wanted to include that language just it's been a long time coming. So, we wanted to get it done and and make sure that we have the ability to to do that and get uh compensated for it. >> Mhm. >> We got any other questions?

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>> We're in administration right now. Public input is done. Uh this will be a motion item. What's that? >> I'll make a motion to this one. C >> develop.

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We have a motion. Do we have a second? >> Second. >> Motion. Any other questions for Stephen? All right. None. Delina. >> Ian. >> Hi. >> Randy. >> Hi. I believe it will be I 19. So we are

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going to be jumping on to cheese fast especially the request of clean the firework display for a minute that's coming up quickly. Hello cheese fest is coming. >> It is super fast. Um, every year I try

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and give the council an update for the upcoming festival. Um, so that's my purpose here today. So, our volunteer-based pineal and cheese festival committee is excited to be finalizing the details of our 90th cheese festival celebration. Festival kicks off Thursday evening with a

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carnival and food vendor, which was new and wellreceived last year. Also new last year was having food vendors open up at noon on Friday, which was wellreceived. So, it's happening again and we're excited to have a couple new vendors this year. Um, we continue to partner with other businesses and

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organizations to have cheese festival events and assist with advertising such as the Pine Island History Center openhouse, pancake breakfast where proceeds go to a local organization, pickle ball tournament, the fire department relief association beer gardens and Saturday entertainment,

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trail head girl and lanes volleyball tournament, the Pine Island ribbon run 5K, a free kids day hosted by Miss Angie's Place, Pine Island Golf Course Tournament, Pine Island American Legion events, uh, and the image committee cheese, wine, and beer gayla. And new this year will be hopefully, if

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approved, a South by Southeast beer garden on Sunday afternoon. Um, we continue to try and build on the cheese market with a variety of vendors and offerings to satisfy attendee requests and pay homage to our rich history. We continue to ideate community, businesses, and organizations engagement

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by driving awareness and traffic to them in partnership with our chamber of commerce. And with this year, uh, we're ideulating with it being our 90th, we're trying to find a little things here and there that we can add to make it just a little more special. Uh, we continue to work hard in advertising our festival

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and community through print, radio, social media ads, and press coverage. Um, and we could not be more grateful for the support of city council, our public works department who will put in a very long week ahead of and the weekend of the festival with setting up making sure garbages are emptied, bathrooms are cleaned, and last but not

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least, our fire department relief association who all but completely dedicate their entire weekend to volunteering in our beer gardens and providing Saturday night entertainment. I personally am beyond thankful for the less than 10 volunteers that we have that puts this on every year. Um, and we

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just look forward to celebrating with our community. Any questions? >> How many years for >> No, it's No, it's been a while. >> 90 years. >> 90. Yeah. >> So, they're planning to the fireworks again down at ball field.

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>> Yes. >> Yep. The fireworks will be down at the ball field. Um everything's cleared with the school road closure for the garden tractor pole and then the South by Southeast beer garden for Sunday.

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>> Hey Terry, can you um confirm the time of the tracker pole and the road closure? Do you know? >> I believe it's starts at 7. And can I get back to you on the road closure time? >> Yep.

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And that's down on 30 school. >> Right behind the school. Yeah. The lake. >> And we have that in the memo. And we just have evening for road closure, but we can make it subject to >> Yes. >> Like an hour before, hour after the event. >> Okay.

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>> Who does the I think they're here before, right? >> Gopher State. I have the contract in my in my shared drive. I can follow up with it. Um it's like gopher state garden tractor pole association I think or something like that.

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>> Any questions for >> perfect. Thank you all so much. >> So this will be a motion item for the firework. >> Make a motion to approve the request for the uh fireworks display permit for

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>> second. Motion, a second for the fireworks. And they do they have a fantastic outfit that does well to protect them and the fire department's down there >> as well to make sure everything's safe. So insurance >> and insurance.

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>> All right. Um any questions, Randy? >> Nope. >> All right. We have a motion and second. Uh Delena >> I. >> Vernon. >> Hi. Randy >> Hi, >> I Which brings us the road closure for the Pion Cheese Festival which is

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pertaining to the tractor to poll uh which Carolyn said she can confirm the exact time but they aren't closed. >> No, I think if we make um the motion to support closure of like an hour before to an hour after after cleanup

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>> with that one. Okay. And again, the fire department's on standby for that as well. So uh motion item make a motion to approve the uh road closure plan special practical pending

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in time >> second. >> We have a motion and a second for the road closure behind the schoolhouse there. Um and that does not interfere with parking for the people that walk you down to the festival. So they got that baited out as well. Uh a motion

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second. Uh Delena >> I >> Vernon I Brandy >> I >> then David will be I on that one. Thank you for chief bus staff working that which brings us to another chief best item which is the that the request

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approved excuse me the temporary liquor license by uh for South by Southwest on Sunday which Sunday afternoon I'm guessing for parade right? >> Yeah. >> Yep. So the temporary liquor license is

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for um down at the cheesefest grounds on the 6th and 7th. >> Was that Saturday too or not? I think setting up possibly >> the licenses isn't for Saturday. >> No, the fire department the relief does the beer guard for Friday and Saturday.

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That's >> I was just making sure. >> Thank you. >> Make a motion to approve the temporary liquor license for South by Southeast Press. >> Second. >> Motion a second for that. We appreciate

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South by Southeast participation. Um We have a motion to second. Delena >> I >> Vernon >> I >> Brandy >> I >> David will be I um

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already looking to July. We got request to approve the one-day temporary liquor license for South by Southeast to the Pine car show which is July 26th this year. Uh phenomenal turnout last year a lot of fun and it's a nice hot day. Um,

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and she had all her ducks in a row last year. So, I'm guessing it's going to be the same. >> Yep, that's correct. So, very similar to last year's setup. So, she would be able to sell beer at the car show. >> And that's the car show was between

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Harbor Store and City Hall. >> It might be extended to the fireh hall, but yes, it would end before the fire hall. So, >> Main Street, >> they had a great turnout last year. So, they're looking for additional parking. >> What?

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>> All right. Um, this will be a motion item. >> Make a motion to approve the one day temporary liquor license for both July 26. >> Second. >> We motion a second.

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>> Thank the EDA and the chamber has done a lot of work on that. So >> um Delena >> I >> Vernon >> I >> Brandy >> I >> will be I brings us to our planning commission we have uh resolution 20

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26-17 which is the plan on the business park final plat >> we are in we are in the planning commission right now >> hey we are in the planning commission So, resolution 26 to17. Who's taking this one?

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>> This would be me. So, um we have an application for preliminary and final flat from GCubed. Um this is for the Pine Island Business Park. This is approximately 33 acres down off of Bioscience Drive down by the Cornerstone Baptist Church. Um kind of past Peak um

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down in that area there. Um, we received a plat that plats five lots um and two outlots. This has been platted in the past. Um, the lots are a little bit bigger. I believe they're garnering more interest for some smaller industrial lots. Um, so they're

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replatting to shrink some of those down. Um, the property is currently zoned um heavy industrial and that's how they plan to leave it. Um, we received the request for preliminary plat and final plat together. Um, according to our city code, we can run those um,

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simultaneously. Um, kind of a quirk with the two plats tonight. This was actually submitted and reviewed by the city back in 2022. Um, it went through the planning commission. It went through council. It was approved. However, um, the way our code is written, the

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developer has 100 days to record that with the county. Um, that never happened. So, the plat just becomes void. Um, so they're bringing it back around. Um, since this has already, like I said, been reviewed by the city, um, there weren't many substantive changes, we figured it'd be most efficient to

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just run them together. Um, so we did have a public hearing before the planning commission, um, back on the 14th, um, and reviewed both the final and the preliminary, and they approved both, um, recommended both. Um, we did receive title work for this um to get to

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the city attorney for their review for the plat opinion and then Craig um put together some memos um in regards to storm water, the grading, things of that sort. Um if he wants to touch on those, he certainly can >> council. So, uh yeah, this is kind of a

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unique situation because the public infrastructure is already in. We have the street that's in the utilities. Uh the one thing that the uh developer did look at is how the um uh split lot or the subdivided lots could be served by the utilities. So uh they would need to

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stub out new sanitary and and uh services along with water services too. Uh so that will not be done at this time uh because there may be they may come back if they sell more than one lot. Uh they may combine those. So we don't want uh too many holes in the street out there. So, uh, when they get, um, when

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they have a buyer and they they know what they're buying exactly for the lot, then they, uh, those can be accommodated with those services. So, those are the only comments that we had. >> Did you have, >> you know, Mayor? Yeah. Mayor, I I have a

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a plat opinion. It's basically a title opinion um that I think we've sent across. Is that right? I think we've so >> Yes, >> I think we put that across. So, but um I guess my only question and this is probably for you uh Stephen is um so I

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see that this was previously platted but the plat wasn't filed and under our code it expires after uh 100 100 days. Yeah. Um just I don't know if you'd know this but um I take it there aren't myars out in the world floating around from that

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prior plat. Does that seem right? uh correct would not have been signed by the county at that point and >> correct. >> Yeah. Okay. You just want to make sure we don't file inconsistent plats at some point. So, very good. Okay. Yeah. No, nothing other than that, mayor. >> Um and then to Craig's point where he

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talked about um the public utilities whatnot already being there. Um again, like we talked about earlier with final plat sometimes come development agreements. Um there was a development agreement for this area um previously with um the original plat. So all of those um utilities and public

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improvements have already been um covered in a in agreement. So we don't need to rehash that again. That's why just the just the plants in front of it. >> Yeah. >> So this movement.

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>> Yeah. >> Yeah. Any questions for uh Craig otherwise this will be an action. There was a suspicion came about finding zone to make sure that they in wherever

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so they are aware of that information here. So appreciate that. SP I make a motion to approve resolution 2670 the tile business final thought

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>> second motion a second on the uh final path Brandy any comments for you before we vote >> nope >> uh Dana >> hi >> Vernon >> hi >> Brandy

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>> I will be thank We have another final fight which is going to be out on 8th Street for resolution 26-18 which is approving the crescent subdivision final plat.

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>> Yep. So we received the application again for preliminary and final plat from Rick Rener. Um this is for the property at the corner of 8th Street and County 13. Um, it is approximately 4 acres and it would create three residential lots. Um, I'm going to sound

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like a broken record on this, but this plot was also um, submitted back in 2022. Um, the planning commission reviewed it, councelor reviewed it, approved it, and again, it lapsed um, due to it not being recorded. So, we're kind of going through the same process of consolidating the preliminary and the

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final. Um, we did have again a public hearing on this at the planning commission meeting on the 14th. Um, we had some comments from the neighbors on Seventh Street, I believe it was. Um, they've had just concerns with runoff.

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Um, they're kind of downhill from 8th Street. >> Um, so they just wanted to >> have their voices heard regarding um, drainage and things as they're they're building out the subdivision just to look at ways that we can mitigate um, the drainage heading in that direction. Um and Craig did a good job of

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explaining to the commission um and those homeowners kind of where on the property each um lot would drain to or where it's set up to be graded to. Um and a port most of the the runoff would be either back towards County 13 um or

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to the east down a street. Um so there'll be a very minimum amount that goes um towards A Street towards that subdivision. So, um, those questions were kind of answered and then just something to keep an eye on, um, as we get the individual grading plans for these lots, um, will be to keep an eye

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on that that runoff. But, uh, again, I'll toss it over to Craig. You can kind of run through what he has in his reports. >> It was, if I remember right, this was it was designed a little bit differently with access on the Hfield there. >> Yep. Correct. So there would be one

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access point for the three homes and then uh or for the three lots and then they would stub off of that one access point. So but yeah, like Stephen was mentioning the drainage, there is a high point that's more on the west side of the property and so the majority of the

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water is directed into the uh swale or the drainage ditch along Pierce uh 8th Street and then directed to the east. So away from uh Seventh Street, the properties that were um voicing some concerns. So, um, you know, but that is

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an area that Todd and I have looked at as far as needing, uh, probably looking at a comprehensive study, a drainage study just to, uh, kind of understand whereivity that water is coming from because a lot of it is coming from this hillside of 8 Street and then, um, underneath a culvert and then going

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towards S's property. So, um, but that's that's kind of unrelated to this project or property, but um, but that is something that we can look at in the future, >> which with because we've I mean in the past we talked about you know making sure and I think he's done a good job

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thus far when was working out there making sure that you know soil and whatnot's not being drug out on a street and stuff like that for traffic concerns >> and then at some point one feedback had been about that triangle lately stop

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sign >> oh you know at just people asking about trafficking and whatnot making sure that that's which is outside. You think Rick's concern right now is >> correct. Yep. And we did and we talked a

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little bit about that at the planning commission as well. We looked at uh the reconstruction of 8th Street. This was 15 20 years ago when we started to look at that. Um improvements would include widening it out um and also realigning that intersection so that way it doesn't

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come in at goofy angles there. Come in more at a 90. Um and then uh to cut that roadway down so it eliminates a lot of that that elevation >> or roundabout. >> Sure. >> Yep. But again down down the road that

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could be looked at a little bit more >> and the utilities are stubbed to the site. Uh that was done a couple of years ago. So there are uh sewer and water services out to each of these lots. And just I spoke with with three

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residents came from plans only moving homes over there and they're concerned you know it's about their water so it's so close and but most what Greg alluded to most of this has been drained away just because the corner signing and you

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know now the problem is city owns half of this road again owns the other half so until this has been done there's not a lot change going to happen. But we just have to be conscious of any development uphills.

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Make sure that there's enough drainage and you know control whether it be filtration ponds or something. >> No, it's Brandy. Do you have any questions on that renderer corner there?

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>> Nope. >> No. Okay. Uh otherwise, this will be an action item for the final flap. >> And make a motion to approve resolution 2618. Uh present subdivision final. >> Second.

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>> Motion in a second. Uh no work at Minnesota. Delena. >> Hi. >> Vernon. >> Hi. >> Randy. >> I will be on that. Thank you for working on brings us to the public works and engineering which we have our 19th

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resolution approving the 2026 street improvement project bid getting the streets going there. Okay. >> All right. One more here. All right. Uh so this is um we did open bids on the 26

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uh street improvement project. We received 10 bids. Um they ranged in price from 2.1 million up to a little over 2.75 million. So there's quite a range between the 10 biders. Um Elcon excavating was the low price bid. Um

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after we reviewed some of the information uh required information that they submitted along with their bid. Uh we found that they did did lack um subcontractor information which is a requirement of the bid. So, uh, we did reach out to Bob staff, uh, talked about

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it. Um, so that's that's why there are two resolutions in in front of you here tonight. So, um, I can expand on the memo a little bit if you would like, but um, essentially the the first resolution be would be accepting the bid of Elcon

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excavating and, uh, waving that informality and and saying that they are a conforming they did submit a conforming bid. Um and the second one is to um award the contract to Fitzgerald excavating which was the second low price bid um as they had um complete uh

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submitt with their um with their bidding. Um, so, um, again, there's about a little less than $50,000 that separates them, um, in talking with Bob, and I don't want to put words in his mouth, but, um, there we can wave, uh,

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the that informality and award to Elcon. Um, or you can say that their bid was non-conforming and award to Fitzgerald there. Um when we discovered that they did not have the subcontractor information um I did speak with Ross

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Badger who's the owner of um Alcon excavating and he submitted me a subcontractor list um within minutes of of me requesting it. So, um, he just stated that he, uh, as the bids were coming in from subcontractors the

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morning of the actual bid, um, he didn't have time to fill out the form and and didn't know who he's going to be using because they were still getting getting bids. So, um, it's important that we know who the subcontractors are because we want to make sure that the the contractor can perform the work. And so,

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that is why we make it a requirement for them to submit that. But again, they did submit it after upon request, shortly after asking for it. Okay. So, um, go ahead Bob. >> Well, um, mayor and and council, if I can, um, we have Erin Dean, Mr. Dean is

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the attorney for Elcon, and he had requested, um, before the meeting tonight that he be allowed to speak on this as the attorney for one of the biders and the apparent low bidder. Uh, I indicated, mayor, that I expected you to allow that since your practice is to allow parties that have items before the

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council uh, to speak. And so I I guess I would ask you to let him do that. But maybe before he does that, uh I just want to summarize my view very briefly and then maybe that will help uh narrow his comments a little bit. Uh you see that in the two alternative resolutions

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in front of you. We have a number of recitals like we always do. Uh the two middle recitalles are the first one is that the low bidder elcon and I think this is in in both versions of the resolution says the low bill bidder elcon did not include a list of subcontractors on their submitted form

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basically their bid uh which is a requirement of their bid and then the second whereas or the third whereas then says the city council reserves the ability to wave bid irregularities and award the contract to the lowest responsible bidder. In other words, they didn't do it exactly right, but under

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your bid specifications, you have the ability to wave the way in which they did it wrong uh and still accept them as the low responsible bidder. And I guess I just want to say that I agree with both of those uh recital. Uh I think it

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is correct that uh submitting the subcontractor list was a requirement of the bid specs. I think there may be a little disagreement. I don't know if Mr. Dean's going to speak to this or not, but there may be a little disagreement. I think Elcon may take the view that they weren't required to submit that

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with their bid. I don't agree with that. I think they were required to submit that. I think that is a a bid irregularity, but I think as the next recital says, it's minor enough that you can wave it. And then the last thing I would say about this is that I understand from Todd, from staff, that

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timing here is not insignificant. The timing here is important. Uh, and I am definitely not uh I don't want to cast dispersions at all. I don't mean to do that at all. I've talked to Mr. Dean a couple times. He's a a good lawyer. U great reputation. And so I'm not suggesting anything to the contrary of

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any of that. Um I would just say that in um his letter to us, you've seen that he sent us a fairly long detailed letter. He does threaten that if uh Elcon is not awarded the contract, litigation may result. that litigation uh would be

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would include uh an attempt to cause the contract with the second low to not move forward and that would delay the project if that were to be successful. So there is the threat that if Elcon doesn't get the contract here tonight uh that things

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would happen that would cause um the project not to be able to move forward in a timely way. So I'll stop there and then if you agree that Mr. Dean should get to say a few things. We could let him do that. >> Would you like to? >> I would. >> Come on up to the lecture.

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>> Thank you. >> Welcome. >> Thank you, Mr. Mayor and city council members. Um, city administrator with Seth Smith in the public works department. My name's Aaron Dean. I'm a Twin Cities lawyer with Spencer Feain. I'm a construction lawyer. I don't know

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a thing about data centers. I'm not here to talk about data centers. I'm here to talk about streets. So, I represent Elcon Excavating, Inc. and its owner, Ross Badger Jr. We are the low bidder. We represent a $2.1 million bid. We

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present the best value to all of the citizens here in Pine Island, and we're excited to do this project. It'll cost another $49,000 um if the city awards to the second low bidder. And I just want to say a couple

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things why I don't think the city should invite that type of controversy by awarding to the second low bidder. Number one, as the city attorney has already pointed out, under article 18.01 of your bid specifications drafted by

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the consulting engineer, you have the right to wave any minor informalities. We are the low bidder. Our bid was responsive to the solicitation and matters of responsibility regarding a potential contractor can be decided at

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bid opening, after bid opening, and anytime up to contract award, which is now. At the time that Ross Badger Jr. submitted his company's bid, he did not know whether he would be using subcontractors. He has the capacity as a company to self-perform the entire $2.1

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million bid. So really the bid the subcontractor list was unnecessary. As things have progressed since the March 26 bid opening, uh he was asked by the consulting engineer on April 9th to submit a list of subs and determined at that time that if he uses subs, these

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are be the ones that he would use. He may still go back and still self-perform the entire contract. Uh Minnesota's competitive bidding laws, including the uniform municipal contracting law, really exist to protect you as public officials to remove any discretion that

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you have. You have to award to the low bidder as long as that bid is responsive. And Elcon's bid is responsive. We implore you to sign the resolution awarding the contract to Elcon. It is never a good idea for a Twin Cities lawyer to come to a city

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council meeting. Even though this is the most exciting city council meeting I've attended in 32 years of being a lawyer, I have nothing to do with the excitement that uh transpired tonight or before or may transpire afterwards.

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All I can say is that our last resort, our last option is to commence a lawsuit. We do not want to. I've had other cases with with uh city attorney Boza's office and I've referenced one of them on page nine of my bid protest letter involving the city of Proctor

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where we got a contempt order injunctions and the city had to pay over $100,000 of legal fees. That would be our last choice. We do not want to do that. We are excited to perform this contract for the city. We are excited to leave the city streets in better condition than they currently are. We

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are excited to work with the public works department with the consulting engineer all for the benefit of the citizens of this great city who obviously are very impassionate about the place that they live. So we hope that after today you will sign this

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resolution awarding the contract to Elcon and that no litigation is necessary. This could be the least controversial thing that happens at this evening city council me meeting or thereafter. Um, you have all of the discretion that you need to sign that

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resolution awarding to us. Please also keep in mind we represent the best value. We will save your citizens $49,000 by awarding the $2.1 million contract to us. I could go on and on, but I think you've heard enough. Thank

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you for your attention, and I trust and hope that you'll do the right thing awarding to Elcon. Thank you. >> We're driving on down here. I had to drive up from the Mayo Clinic. >> So there you go. It's been a great day. >> Responsibility.

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I don't think they need to. >> Can you talk into the mic? I can't hear you. >> Sorry about that, Brandy. Yeah, I was justating that uh it was good that they were responsive to Craig's call about the when we called them about the missing subcontractors.

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So, I don't see that as a sticking point not to go forward with this. But, um just a warning to them next time that they need to make sure they you know furnish all the information if there is another street project next year. I kind

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of feel like we're penalizing the other bids then though because they submitted everything correctly, right? Everybody else did. >> And so, >> yes, but I'm also in favor of saving

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49,000 for our citizens, too. >> I understand that, but I also feel like we're being bullied into this, so I'm not a huge fan of it. Well and like the gentleman reiterated too, if their if their company has the capabilities of being able to perform

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the work without the subcontractors, you know, taking that into consideration as well. Um, if they're able to do that, you know, which can make that null void as well. So, um, but you you're correct too, Brandy, that you know, the other biders also provided needed, uh,

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materials in that time and manner. So, um, you rais a good point. I just think that if we set the precedence that if something is said in this regard and they did not do it completely like everyone else did that everybody's going

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to ask for an exception going forward >> and we've seen that happen. So in the interest yes I know it can save $49,000 or whatever but it could also cost us more. Mhm.

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>> So, there's two different sides to that because we didn't know. Yes, they can do it on their own. Understandable. I understand construction more than you would think probably. But I just feel that it's not fair to the other bids and it's

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not like yes, we have the right to be able to do that um and excuse it, but I feel like It's again I just feel like it's not right to the other bids who submitted everything correctly when that's the way

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we have our application for a reason. >> I appreciate that. >> No, and to your point too Vernon with with the 49,000 as well. Um, I mean, we're fully aware that there's going to be some cost passed on to our

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homeowners, the property owners with the assessments. And that's one thing I am very mindful of right now just with uh there's a lot of challenges going on with uh, you know, community members and things like that and being cognizant of being able to help uh, pass that savings

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on to our property owners as well. being mindful of that and uh you know if we especially some of the bigger properties of that one correct that

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but no bra I appreciate your points Brandon uh otherwise this will be an action item for 19. I'll make a motion to approve the bid to Belcon submitted all the responsive you know

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information subcontractors set up for the street project. >> I second it. >> Motion to second toward that bid. Um any other discussion? >> Yeah, Mayor I just No need to change the resolution that you've just made a

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motion to approve and had seconded. I just for the record uh the resolution doesn't say it explicitly the resolution awarding to Alan but it is implicit in it and I'm going to say it out loud to the extent someone would argue that it

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is an irregularity to have not submitted the subs you are by doing this waving that irregularity that's implied in the resolution. So, I just want to make clear that that's that is what is being approved if that's the will of the of the council majority. >> Thanks, Mayor.

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>> And we did hear from them that they >> were capable of doing everything themselves. >> Yeah. >> That's why they Yeah. And and I I just said I was done, but I the only reason I say that is I I appreciate the council member's comment about uh we expect and

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very much want um parties that bid for our projects to submit everything that the bids require. And so I guess I'm just making the point that this is the very very odd case where you're waving in irregularity, but we always expect biders to fully comply with your bid

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specs and requirements. And so I I appreciated that comment by the council member and just want to reiterate that with my comments. >> I don't think Elcon's had any street projects with neighboring towns. So as long as they're aware of this going

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forward, hopefully that'll change that precedent. Remind me the bid. Is it a solid like they can't increase it on us or No. >> Was that Randy? They can't No, they can't increase the

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>> like if anything changes during the whole project, I cannot increase it. >> Uh yeah, Randy, this is Craig again. Um so yeah, this is a unit price bid. So we we pay for the quantities that are installed or um um or constructed. So uh

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so that that 2.1 million is based on the quantities that we've provided. Um if it's if they have fewer quantities then they get paid less more quantities they get paid more. So >> and and mayor and Craig just part of your role of course in your inspection

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and your work as an engineer your firms you you are verifying that the quantities are in fact reported to you correctly. So when you work that out at the end, whether it's a little net negative or a little net positive, that's something that you're verifying as part of the in inspecting and and monitoring the project, right?

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>> Yep. Yep, that's correct. So we'll have full-time on-site um observation. So um we're keeping track of quantities every day, going through those with foremen and then um kind of reconciling that every week. Um and then the pay requests are on a monthly basis. So yeah, good

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point Bob. >> Thank you. sort of show you that >> um jump Delena >> I >> Vernon >> I Randy >> Brandy >> I

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>> okay and David will be I thank you thanks for your work on that too Craig uh which brings us to resolution 2620 which is going to be providing for the competitive negotiating sale of geo improvement bonds series 2626A Hey, is

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this about Mike? Oh, he's right there. He made it stuck in. >> Good evening, sir. >> Good evening, Mayor and Council. Would you like me to just jump right in? >> Sure. >> Okay. So, I'm here tonight to pro provide my recommendations on, you know,

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uh structuring the debt to pay for the project that you've just awarded the bid. Um I think in your packets, do you have those available to you on your laptops? I think it's page 89 where you'll see a spreadsheet that looks something like

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this. >> Yeah. Where is >> Craig's found it? >> No. >> And the reason I'll have you look at that is I do have a letter in your packet that lays out the recommendations, but this actually illustrates it. And I'll just walk you

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through it quickly. Is everybody on the same page? We're getting there. Oh, okay. Yeah, just to be clear, it's on page 89 of your packet on your computer, not not in particular item. So, it's

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>> 89 there at the top of the screen. Yeah. >> Awesome. Thank you. >> Okay. So, first of all, um we got a number of recommendations and let's first start with sources and uses and this is going to be a little more detailed than normal based on the action that the council just took. Um, but in the top lefth hand quadrant, you're

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going to see the sources and uses. Um, I think I had a miscommunication with Craig. I had the construction bid, I think, at the second bid. >> No, that was that was the uh I said use case in there. >> Okay. So, now we understand it's $49,000

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less. So, before I go any further, we've got a couple of options here. one is is I could go ahead and um reduce the borrowing by $50,000 uh and move forward on that basis. Or alternatively, we could just shift money

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from the construction number there in the top left and add it to the contingency amount down below. Um it doesn't really matter to me, but I would be inclined to move it to the contingency amount. Um the amount that's in there right now is just 5% of

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construction and oftentimes we see street reconstructions have as high as 10% contingency amount because as you tear up into the ground you could run into things whereas Craig mentioned um quantities you know could be different and so it just provides some cushion but that we can maybe address that at the

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end. Um below those capital costs are a variety of issuance expenses. The first one underwriters discount allowance. Um, when the city goes to issue this debt, uh, the purchaser of the bonds, uh, will not pay you full price. They're going to

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discount how much they pay you for the bonds because they intend to piece it up and sell it to their underlying investing customers and they're going to sell it for full price. So, this is their profit, their their compensation. Now, we get to set you and I or I should

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say the council gets to set how much compensation is allowed through this practice. And the rule is you can go up to 2%. Uh 1 and a4% allowance is plenty. So I expect um compensation will be somewhere in that realm. Um but when

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this pro when this is bid out, they might bid something less. Okay. So we're just saying that's the maximum discount. I'm going to touch on compensation more in a in a minute here. Uh the issuance cost down below fiscal fee, that's our firm, municipal advisory firm. bond

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council, that's going to be Kennedy and Graven. Uh a pay agent, what they do is when these bonds are purchased and then they're pieced up and sold to all the underlying customers, um payments are going to be due every six months. You're not going to want to write a check to

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all these underlying investors when write one check. A pay agent basically is an invoicing service where you just pay them and then they distribute the funds accordingly. uh printing and miscellaneous that has to do with the preparation of an official statement which is the official

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disclosure document that we provide to the biders and so forth. And then the rating fee I'm going to advise getting a standard importers credit rating uh for this bond issue. Um you will save potentially upwards of $100,000 in

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interest over the life of the deal by having the bonds rated versus non-rated. It makes biders more warm and fuzzy about uh the creditworthiness of the city. Currently the city enjoys a double A minus credit rating with state uh standard fors which is a very solid

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rating. I will point out that they have changed their criteria to be more stringent than it has been in the past. So there is a small possibility I don't necessarily expect it but there is a small possibility they could knock it down a notch to an A+. But even if they were to do that

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wouldn't be a reflection on the city. be more of a reflection on the change of their formulas. Um, I've seen some cities maintain their ratings. I've seen some get that adjustment. But regardless, you're going to do better for having the rating than not. The biggest benefit is

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rated versus non-rated. Whether it's double A minus or A plus, the difference between those is maybe 5 to 10 basis points on the interest rate, but non-rated versus rated could be 50 to 75 basis points difference on the rate. So, that's the important piece of it.

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Um, capitalized interest is not an issuance cost. That's basically extra dollars. Um, if you were to take your eyes diagonally down to the right to a column that says account balance, it's money that you put into the debt service fund to make the first interest payment

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that'll come due before your taxes next year and special assessment revenues next year. Before those start to come in, we need to have a source of funds to make that first payment. And so that's why that's there. Now, while that's a useful tool, capitalized interest, it's

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inefficient because what capitalized interest is is you're borrowing paid money to pay borrowed money. So, if you go down into the sources of funds, you're going to see a city cash contribution basically of the same amount. And I did speak with staff

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about, hey, could we dip into reserves to cover the first interest payment so that we're not borrowing that capitalized interest? and we all came to the agreement that you have more than enough capacity to do so. So that inefficiency is a is basically mitigated by the use of that cash.

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Um the industry standard is to issue bonds uh in the public markets in denominations of $5,000. So you're going to see a construction fund earnings, but it's basically just a rounding number. And so just to summarize the recommendations so so far, number one, offer one and a

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quarter% underwriter discount allowance in the bids. Uh number two, use cash to offset the capitalized interest. Number three, let's get a credit rating. Um and then number four, let's size the bonds at 2.77 million. Um as as shown there.

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Now below the sources and uses, you're going to see an annualized uh payment schedule. I did mention the payments are every six months, but we mush it together into an annualized form just to save space on the page. And you're going to see two columns of interest rates. You're going to see coupon and you're

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going to see yield. The interest that you pay is going to be based on the coupons that get assigned. So, when Craig is bidding out your road projects and you're doing quantities of black top and this and that and you're getting unit prices, uh, what we're going to do is we're going to bid out these principal payments and then the biders

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are going to assign the coupons and the yields. Now, what I'm showing you is that the coupons are equaling the yields, which is basically a par sale. Now, I mentioned the compensation in the underwriters discount is limited, but there are things that go on behind the scenes where underwriters can make more

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money. And one of the one of those ways is through premium sales. So, what we're probably going to see when the bids come in is that the coupons are probably going to be four or 5%. But those yields will stay somewhere in the realm of what I'm showing you here. And then what that

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does is people are the underlying investors are paying the the purchaser money to slap a higher interest rate coupon on the bonds. And the reason they might want to do that is um based on their expectations of where the market

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might be in the future. So, a real crude example would be let's say you yourself purchased a $10,000 bond that's going to mature in 10 years with the purposes of maybe it's for a kid's college account, something like that. Uh, and let's say you purchase

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that bond at an interest rate of 2%. Five years down the road, long before the bond matures, interest rates rise and you decided that that kid unfortunately is not going to college. So, you're going to cash out and you're going to sell that $10,000 bond at 2%

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interest. But the market five years from now is 4%. Who's going to pay you $10,000 for that bond with 2% interest? They're going to pay it something less because otherwise they could just go buy a new bond at 4% interest, right? So, oftentimes what

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these people will do is they'll pay a premium to slap a higher coupon on there to protect themselves down the road from that happening. And conversely, the opposite could happen. We could see where people want to uh have the coupons lower than the yield, basically at a

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paying us less through additional discount um for a variety of reasons. One is is maybe they're not interested in um generating a lot of income in the early years, but they want to guarantee a certain payback later on. They might go

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the other way. And this is a long windy confusing uh presentation simply to say that the way we protect against those shenanigans between premium sales and and discount sales uh and and the

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compensation of the underwriter is all of that comes into the net effective rate calculation. So if you were to go over to the right hand side, I'm projecting a net effective rate of 3.7 something% there. All of those factors come together to determine the net effective rate. So

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those shenanigans, if they take place, will impact that net effective rate on their bids. And so that's the way we protect ourselves is through that bidding process. So ultimately, it's not so concerning or should not be so concerning if they're doing those things

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um and if they're increasing their compensation through those background sales because what we're ultimately interested in is getting the lowest net effective rate and how much we pay over time. So that's the way we control that. Um having said that, when we do the bond

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sale, if there's a lot of premium sales, oftentimes what they'll do is they will give us the premium back. they'll they'll slap a higher coupon on it. They collect those premium sales and they'll say, "You know what? Our compensation through the discount is fine. We're going to give you the premium back." And

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then what we do is we reduce this bond when we do the sale. So instead of doing 2.77 million, maybe it's something less. Okay? Based on those premiums. But all of that happens on the date of sale, which would be basically a month from now.

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Um I'm showing a term there of basically 15 years. um that's consistent with prior planning. I've done some capital planning with the city in the past. Um I believe this project might be less than kind of what we used in our planning at that time. So the impact in if you're worried about what these levies and

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things are going to do, the impact should be less than what we've shown back when we did that work session which would have been a couple years ago I think or a year ago. >> Yeah. >> Yeah. quite a bit quite a bit more. Um, in terms of what authority to use

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for the bonds, if you were to go to the top, you don't necessarily have to do it, but the in the titling of the general obligation improvement bond, basically what that means is you're using special assessment authority to have the legal authority to issue the debt and your assessment role has to equal at least 20% of the project costs.

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The projected assessment role is 635,000. So, we've met that test. And the good news about having it meet that test is these bonds do not count against any statutory net debt limits. They're not subject to any protest petitions. Um there are public hearings associated

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with the assessments themselves and people could challenge the value of those assessments, but um there's nothing that's going to prevent this from moving forward unless you just choose not to accept the bid. All right. Um, on the right hand side of

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the page, about halfway up, there's something called a call option. I'm I'm suggesting 2034. Imagine you're an underwriter or an investment banker who wants to purchase these bonds and you're selling them to your underlying customers and they do a

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lot of research on City of Pine Island. Do I want to invest in Pine Island? Um, last thing they want to have you do is issue the bonds, then pay them off next week. They want the investments to be good for a period of time. So what we do in order to entice the bids to make

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people feel warm and fuzzy about bidding um is to put out a call protection far enough meaning you cannot prepay these bonds until that date. And this is the date that we're seeing on most competitive sales at the moment is 2034.

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After that date, you can prepay in whole or in part at any time without penalty. Okay? So, it's just um having to wait until that date if you do that. Um prepayment might be in the form of we just want to buy it down with cash or prepayment might be interest rates are

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lower at that time and we want to refinance. But we would have to wait till 2034 to be clear. Okay, I threw a lot at you. I was trying to do that quickly. Um why don't I stop see where things >> so the rating then will that affect the

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interest rate? Yep. If we don't have that credit rating, while we could reduce the bonds by the 15 or $16,000 there, >> your interest rate is going to go up and you're going to pay way more. >> I was thinking in like a double A minus to A+.

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>> You know, that's going to affect two, >> right? Yep. So, if we maintain the double A minus credit rating, we'll get a better bid than if we go to A+. But the difference, like I said, is probably five to 10 basis points. So, Randy, do you have any questions for

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Mike? >> I do not. >> I'm not that good. There has to be questions. >> So, are we talking about moving that extra to the contingency then? >> Yeah, the excess going down the

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contingency. >> And that's what you'd recommend as well? >> I think that's especially if they run closer to 10% that'll help cover some of that. Now, let's go down the road where you don't maybe the quantities are just perfect

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and we have this leftover contingency money. Any money that's left over in the construction proceeds at the end of the project will get moved to your debt service fund. And then what you would do is you would reduce or eliminate one of the tax levies associated with the debt to the extent we can move that money

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over. Now, if we were to do that, I would suggest not reducing the levy altogether. I would say reduce the debt levy by that amount, but maybe keep levy the savings and put it in somewhere else in your budget. You know, put some money away for a future

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truck or something, you know, if that if that happens. So, >> you're kind of the numbers guy. So, yeah, I appreciate your work. This is going to be uh that resolution to put that out there

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the bit and the resolution won't require any amending uh because we don't talk about the breakdown in the line items. I will just go ahead and do that as we move forward into the next meeting. And by the way, what would happen if the resolution passes, the first step is

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that our firm will prepare the official statement um with staff's help. We'll arrange a rating call with standard Boris. I'll sit in on that call along with um Elizabeth and whoever else she thinks should be on there. Um and then we would uh be back on May 19th. That

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should be a council meeting night. That morning at 11:00 a.m. we'll open up bids. I'll have to verify the bids and so forth. But by early afternoon, I should be able to report to staff where we're at and then I'll present the results that night for the sales resolution. So, you're really not past

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the point of no return tonight. You're basically just saying, Mike, go forth and make it happen and then a month from now would be the actual locking in. Okay. >> It's been a while since you need to be. >> This would be an action item.

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I'll make a motion to approve resolution 2620 by in the confed negotiated sale of general obligation improvement bond series 2026A. >> Second. >> I have a motion and a second. Any other discussion? >> Check with you one more time. Brandy, if

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you have anything. >> No, we're good. Thanks, Mike. >> You're welcome. >> Uh Delena, >> hi. >> Vernon, I Brandy, >> I would be. Thank you. Thank Thank you all. Good night. >> We are going to be jumping into some GPS

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and data collector tablets for our GIS. >> Hello. >> Oh, mayor, council, um looking for your approval to purchase Leica Zeno LFX100 GPS and data collector. Um, so we can

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start doing our own mapping in town, shooting, curb boxes, manholes, elevations. Um, we we need we're about three years behind, so we'd like to

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start catching up. Uh, Sam and I met with Goodu County, who we work our mapping GIS with, and uh, they were pretty excited about getting us going. and Sam kind of volunteered to head it up a little bit. So,

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>> so if you got any questions, throw them at Sam. >> Everybody's excited. I mean, everybody's going to learn how to use it. Uh, >> well, just the turnaround time will help too. >> And yeah, we can do our own editing. So, >> and you're still recording it when good

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you come if you got a needle, right? Yeah, interesting information. >> Excellent. Thanks, Jordan. >> So, how does that with the with you in the Mstead County? Just so people are curious, are you going over into the Almick County side as well to be able to

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to do this state or strictly? >> Yep, we can we can go in any of the counties else, but >> yeah. So, it it's a state bid from Leica um for

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$9,297.40. Now, there's some software. Sam probably understands software software stuff more than I do, but uh so there's like a $44 a month software. >> So, that we need to purchase also. So,

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so it's a subscription service that basically provides you with the software that allows you to >> send just people are curious about the cost. Um I remember the bra you're what you'd be

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paying for this to be done essentially going to be covering cost of not picking on Craig but if I would hire if I would hire his survey crew in seven eight days I'd have this paid paid for with the cost of a survey crew

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and and that's not time them editing and >> yeah So >> nice. That comes out of >> that'll be coming out of our utility fund. Water, sewer, storm, s. >> Thanks.

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Any question, Randy. >> This is kind of more of the maintenance. >> So Sam's going to take care of all this so I can bother him about it. Memorial Day. >> Sam would be the man. >> Okay, one more. >> Sounds good.

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>> All right, this will be an action item. >> I'll make a motion uh to approve the purchase of the GPS and data collector tablet GIS. >> I second. >> Motion in a second. Uh any other questions or comments? Delena >> I.

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>> Vernon >> I. >> Brandy. >> I >> David will be. Thank you guys for it. Be nice to see your use. >> So beautiful. >> I'm not gonna move on next. >> You're on to the next one.

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>> Discussing our base repair and maintenance for the catch basins there. >> So I got three quotes. Uh one from Shoeacher SNL contracting and cats excavating. Uh Schumacher come in low 47,000.

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This is to repair our catch basins and the streets that we're going to mill and overlay and possibly reclaim. Um they're some of them are in real bad shape. So I want to get them fixed before we put a brand new mat down. So

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um so I'm asking the the quotes came in at 47,000 low. Next one was 488 and the high was 532. Just I mean if people are curious what that actually means when you talk about

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the maintenance um because you had two areas correct that are mapped in town. >> Yeah. I'm I'm doing some in in the southeast. I got five blocks in the southeast and then I want to do Fifth Street Northeast.

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Um, we met with a couple contractors and our streets are this is about it for mill and overlay. We're going to probably start doing just total reclaim and that's grinding everything and regrading

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it and putting in 4 in of brand new. So, it's going to be a little more costly. But >> this once again goes in line with our goals of getting ahead with the street repairs and keeping our streets

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going so you don't fall behind again. So u take his recommendation on that. So and I'll have some melon overlay bids here later. Um we'll get them out. Greg helps

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us with that getting that to the contractor. This should be an action item for motion to approve. >> I second because our computer's dead. >> This one needs a pin.

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>> See, just the request for approval uh to your >> Oh, to shoe markers. Shoe markers. Yeah. >> 47,000. Yep. Any questions, Brandy? >> Nope. If I can get my mute to work.

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>> All right. Um, Delena >> I, >> Vernon, >> I. >> Brandy, >> I. and David will be I which brings us to resolution 26-21 which is the plan and ordering the bids for the Hillrest water tower rehabilitation project which

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we discussed there during our work session mayor and council. So this is um again this would um authorize us to send the plans and specs out for bid and then we would receive bids on May 14th and bring it back to you on your May 19th meeting.

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So, um, again, we're at the end of the useful life of the coding system up there on the Hill Crest Tower. There was a report that was done a few years back. Um, and so it's it's at that point where it needs to be repainted. Uh, some minor structural improvements are going to be

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made and then some welding too. So, um, so it's in need of it. >> I believe there was talk about lettering too to make sure what would be on it. >> Yep. So, I think as the way we have it right now and where we landed was block lettering, Pine Island on two sides of

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the of the tank. So, um so it' be a light gray like the Island Heights tower with maroon matching. >> Yep. That's maroon lettering. >> Very good. >> An action item. Make a motion to approve

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resolution 2621 for the honey ordering bids for the Hillrest water power rehabilitation. >> Second motion is second. Randy, anything from you before you vote? >> Oh, Delena.

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>> I >> David will be five. Thank you. >> Let us jump to Bob. >> I don't have anything mayor. Thanks. And we'll go to claims. >> Second. >> A motion. A second. I claims Delena

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>> I. >> Bernon. >> Hi. >> David will be I which brings us to department updates. Uh before I forget, um did you want to go first? Do you want to go?

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>> Go ahead. >> All right. So, just for in case people are not aware, uh we are our council meeting falls right in line with National Library Week, which is really cool. And uh so we do have proclamation

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which I'm going to share so you can have a copy that needs to be printed. So whereas April 19th through through the 25th is recognized as n national library week at the theme find your joy. Whereas communities across the United States celebrate the annual event to highlight

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the valuable role libraries and library professionals play in transforming lives and strengthening communities. Whereas Pine Island has a strong and rich history with the Van Horn Public Library ser serving the Pine Island and surrounding communities. Whereas I, Mayor David Freeze, encourage our

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community members to visit our library and if needed, sign up for the library card which is will open endless possibilities. True statement right there. Uh whereas Van Horn Public Library not only hosts a wealth of books but also provides programming, community

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support systems, story time, and a path where curiosity and connections can come to life. Whereas we recognize our library leaders as a voice for education and ensuring free access to all forms of education and information. Whereas we publicly thank our local library leaders

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for their service. Now therefore, in recognition of National Library Week and highlighting the service of our library director and staff, as mayor of Pine Island, and on behalf of the city, I David Freeze do proclaimed April 19th through the 25th as library week in Pine Island. And witness whereof I have here

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unto set my hand seal to be a fixed. We will seal that. Um, respectfully David Freeze Mick and just want to truly thank Rachel and her staff for an outstanding service. That's >> it's recognized

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>> in the area. So, we should also thank public works for going out and getting rid of that hornets out of that my little library. >> The little library. I'm alert >> somebody. >> Thank them for that. >> You want to create?

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>> I'll just make a quick um blur that um it's also National Poetry Month this month. So, we've got a poet tree in the library right now. So, come on by, write a poem, put it on our pine tree so the kids quit asking why I still have my Christmas tree up when it's actually my

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pine island. Um otherwise we have brand new HVAC in the building, a brand new boiler and brand new um mini split for AC. So hopefully that'll help us going forward. And then otherwise the first week of June is summer reading program signup week and programming will start

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that second week of June. So Heidi has been really really busy and uh yeah so looking forward to seeing all the kids and their um adults all summer long. >> The age looking good? >> So far so good. lot lot smaller. >> I like that.

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>> Thank you very much. >> Public works say you guys got the restroom open. >> How's the park going? >> We got that part closed down.

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>> That project going. That's going to be really neat to see down there. Thank you guys for that. Have you started going yet? Yeah, sure. Egg partners had the beats

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of that one. Um, EDA, we got some news there. >> Yes, I'll get two quick updates. Um, one, the community mural. Uh, so we got that narrowed down to two concepts. Um, we got some really good feedback from that committee. Um, and we just heard

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back from Prairie Island. They were able to take a look at the two concepts as well and provide some feedback to the mirror list. Um so he'll be incorporating everything that was there into a couple more um concepts and get those to us and then we'll we'll look at getting out to the public for a vote on that. Um and then the other is the DNR

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grant. Just quick update. We're still working through that with the National Park Service to get it fin the final approval and the grant agreement. Hoping that uh this time next month we actually have something in front of you to agree to but still working on it. >> Thank you so much.

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>> What's the general feedback from Perry? was pretty good. >> Yes. Yeah, they really really liked one of the concepts. Um they just wanted to uh adjust a couple of the images in there and then provide I think it was an eagle um that symbolized something for

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them as well. So a couple of those things that they wanted added in there >> and a bison >> and and the bison. Sorry, I forgot about the bison. >> My I I wanted to see bison sonar, so I was >> Yes. So it'll be good. >> That'll be good.

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>> Thank you. Yeah. Excellent. Uh fire department has another busy month of accidents. So that was um speaking on I'll say on behalf of the chief the department did a phenomenal job responding to uh some

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pretty serious ones. So thank our thank our firefighters for the work we do up there. Um anything else from any other committees? Otherwise, Rachel 19%. All right, that way you're ready to

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adjurnn. Make a motion to adjurnn. It will second that motion. All >> in favor? I >> thank you everybody.