Call the meeting to order. Roll call. >> Mayor Reese >> here. >> Council member O >> here. >> Nelson >> here. >> Gilbertson >> here. >> Gardner >> here. >> Baggerly >> here. >> Davis >> here. And >> here. >> Council member Butterfield is excused.
So I have eight present, one excused. >> Stand for the pledge. I aliance to the flag of the United States of America and to the republic for it stands one nation under God indivisible with liberty and justice for
all [cough] or deletions to the agenda. Motion to approve the agenda as presented. >> Second. >> We have a motion and a second. Discussion. >> Roll call.
>> Council member Gardner. >> I >> Davis. >> I should >> I >> Gilbertson. >> Hi. >> Baggerly. >> Hi. >> O. >> I. >> And Nelson. >> I. >> Seven eyes's zero nos. >> Motion carries. [clears throat] We had
nobody for open form, right? [cough] >> Correct. No one. >> Next is the uh civic center at Blue Line Arena roof project. >> The consent agend agenda needs to be done first.
>> Oh, I'm sorry. Yeah, we need a motion to approve the consent agenda. >> So moved. >> Second. Discussion. >> Roll call. >> Council member Gardner. >> I.
>> Gilbertson. >> Hi. >> Osc. >> Hi. >> Schultz. >> Hi. >> Davis. >> Hi. >> Aerly. >> Hi. >> And Nelson. >> I. >> Seven eyes. Zero nos. >> That passes. Now the civic center blue
line rein project. Ron. Park Director Rob Bombgard. >> Good evening, mayor, member of the council. Tonight, uh we're going to look at adopting a resolution accepting the proposal from the JAR company for the replacement of the Blue Line Arena roof
in the amount of $263,797. Um just recapping the the roof, it's the original roof from from 1998. staff has done the best that they could about making the the repairs that they can with the screw heads and the seams. It just has gotten to the point where they can't fix it anymore. Um the roof is
probably and what the contractors are saying have lived its life. Um [clears throat] they've had a couple of we've had a couple of them expect inspect it. Um so they're saying to replace the roof and this is kind of twofold because we're looking at trying to reinsulate that roof as well. So this
kind of kills two birds with one stone by because how we can do this roof is they fill in all the flutes from the roof. So it makes it completely flat and then they can add the insulation on top [cough and clears throat] of it and then they put the membrane on top so we're able to kill two birds with one stone so
we won't have to insulate the inside of the roof now. So um we worked with the Jar company. They are part of the source um bidding. So we went this route and um looking for your guys's approval. You said that this is the original roof. >> Yes.
>> Wow. >> Pretty amazing. >> We've done a lot of uh screw repairs up there. So, >> we need a motion to adopt the resolution. >> So, move. >> Second.
>> Got a motion and a second. Discussion. Roll call. >> Council member Davis. I >> Oscarly >> I >> Gilbertson >> I >> should >> I >> Nelson >> I >> and Gardner >> I
>> seven I's zero nos >> motion carries. Thank you Rob. Next I'll call on city engineer Jared Bogey for Iverson Park lift station. >> Good evening mayor and council. Closing your packets this evening is the staff
report related to the Iverson Park lift station. On February 24th, we received eight bids for the improvement. They range from a low bid in the amount of 400 or excuse me, $548,673.25 to a high bid in the amount of just over
1.1 million. The low bid was submitted by Dun Inc. And uh enclosed in your packets this evening are two resolutions. First, accepting the bid and awarding the contract to Dunik in the amount of $548,67325.
Second resolution is to approve the asbid budget. And with that, mayor council answer any questions that you might have. >> Call for a motion on the first part to Dunix.
So move second motion and a second discussion. [cough] >> Mr. Mayor, I just have a procedural question. It might be for Mr. Scott. My company has been informed that we are likely going to perform the industrial portion of this bid. Should I abstain
from this vote? Very small part of the bid. >> Yes, I would recommend abstaining from Okay. Any further discussion? Roll call. >> Council member shoulders. >> Hi.
>> Baggerly. >> Hi. >> Nelson. >> I. >> Davis. >> Hi. >> Gilbertson. >> Hi. >> And Osk. >> I. >> Six eyes's and one abstained. Zero nos.
>> Motion carries. Next. A call for a motion on the asbid budget for the Iverson Park station. So moved. [snorts] >> Second. >> A motion and a second. Discussion. >> Roll call.
>> Council member Osk. >> I. >> Davis. >> I. >> Baggerly. >> Hi. >> Shel. >> Hi. [snorts] >> Gilbertson. >> Hi. >> Nelson. >> Hi. >> And Gardner. abain from this one as well. >> Okay.
Six eyes's, zero nos, and one abstained. >> The motion carries. Next is uh approve bid for project 2601A, 4th Street Southwest reconstruction. I'll call on Jared
again. >> Mayor Council, the second item this [clears throat] evening is related to the Fourth Street Improvements Project. Plans and specifications have been prepared for that improvement and we're seeking council authorization to approve the plans and specs and authorize
advertisement for bids. So move a motion >> second and a second discussion Justin. >> Thank you Mr. Mayor. Uh Mr. Roi, I've uh been communicating with you uh for a
couple days now um on this project um because I've received quite a few communications from members of the community who are upset about tree removal um just so the public is a little bit more aware than they might be at this moment. Could you provide some
background on on what will be happening with tree removal for this and other similar city street construction projects? >> Yes, absolutely. So, similar to all reconstruction projects, ultimately what happens is we put together the preliminary concept or the layout for
the improvements, uh, typically our streets are centered on the rightway. Uh, from there, city standard has been, uh, to place a sidewalk about a [snorts] foot or two feet off of the rightway. That allows room for contractors when they're working on the private side of the
services to dig up to the service and not damage the sidewalk. um during that process. So once the street corridor is laid out uh then we review the improvements with respect to trees and private utilities. Uh private utilities
particularly Wilmer municipal utilities transformers are expensive to move. Uh so we try to accommodate not only the private utilities but also the trees because a lot of these places that we're reconstructing um they haven't been uh reconstructed or
improved in a number of years and these trees are mature, right? And so it's definitely an asset to our community that we want to preserve. Um what we do find very frequently unfortunately is that um homeowners tend to plant trees
next to their uh sewer and water services. When we come in to replace those from the main to the property line, [snorts] uh suddenly you have a 20 plus inch diameter tree right next to us a water service where there's going to
be a trench 10 ft deep. Um, as you can imagine, that presents a safety hazard for the uh workers that are installing those services and quite honestly a lot of those trees um are what are impacting a lot of the service laterals coming
from the homes because of root balls and things of that nature. Uh [snorts] so ultimately if there is a tree immediately adjacent to a um curb stop or sanitary sewer service uh that tree unfortunately needs to be removed.
So once um we've identified this on a plan perspective, reviewing it as part of the preliminary plan process, we go out in the field and we review each tree um with the city's arborist as well as um engineering staff and we look at each
individual tree scheduled for removal while we're out there. Um [snorts] and as council is well aware right now, we do have a problem with emerald ashbor in the community. Uh so we do inventory all the ash trees in particular on four streets. Some of
those ash trees have already been removed some are sick and they have been included in the um project for removal. So the treere's overall health as well as its type now that we have such things as the emerald ashbor go into consideration
um for those tree tree removals. [snorts] So after that field review of all the trees um are is completed, we take those that information back and uh finalize the plans and determine the the
final tree uh removals. And ultimately the goal is to preserve as many as possible. um trees that don't present safety hazards, pre trees that aren't diseased, trees that aren't going to um contribute to early deterioration of the
infrastructure improvements uh that are going in with the project. So, um ultimately that's a really quick snapshot of what goes into uh determining what trees are removed and what aren't. Um so, I'll pause there if there's any additional followup.
>> Just one quick follow-up question. It would be inaccurate then to state that every tree along that street was going to be removed. >> Uh not every tree along that street is scheduled for removal. I will say however there is a significant number of
trees that will be removed on that project. Uh if memory serves me correctly, I believe there's approximately [sighs and gasps] and I get these numbers wrong, but generally I think there's 29 trees right
next to curb stop, 17 ash, so there's going to be quite a few trees removed. >> Okay, thank you. >> You bet. >> Were we able to save any because we're narrowing the street? Does that did that factor into being able to save any of them?
Um so the narrowing of the street and intuitively you would think that that would make that would make a big difference. Um what we found particularly on that project is the location of the private utilities as well as the existing sidewalk out there
varies from 3 to 4 feet in width. City standard uh sidewalk width is 5t. And as you drive up and down that corridor you can see the um massive size of some of these trees. You can see um how they're perched up on the boulevard. They almost
look like an ant mound um with their roots above. And if you look immediately adjacent to them, you can see what they're doing to the curb as well as the sidewalk. Um unfortunately with trees, their roots extend out as far as their
leaf canopy. And [clears throat] um if you get into the major roots on a tree, it might still stand for a few years, but it definitely is stressed. And then if particularly if we get a dry summer and it doesn't get all the moisture that it needs, it it
unfortunately will have to be cut down in the future. So, um the uh narrowing of the street was not as large of a factor as one might think just given the existing infrastructure or the width of the existing sidewalk um as well as the
um overall size of of those trees. >> Thank you. >> You're welcome. >> Any other questions or discussion? >> Top, >> will there be um an effort to replace trees that are cut? >> Yeah. Uh so actually as the city does
have a tree replacement or planting program. Um last I talked to Mr. Tinkllinberg he mentioned that the city I believe and I'm going to probably get this wrong but I believe somewhere in the neighborhood of 80 to 100 trees
annually. Uh certainly uh projects that remove the uh mature tree canopies within the community are prioritized. Uh, and I know that, uh, public works staff is always looking for grants to replace trees. So, um, trees do get
replaced in boulevards after they've been removed from construction. Not one for one. Um, I don't want to have that misconception out there, but, uh, along that corridor, I fully anticipate there will be trees replanted. Over the years, I've taken part in Arbor
Day and public works planting trees and we'd have grade school children there and this on celebrating Arbor Day. I know we we've got a good tree
replacement and uh projects throughout the city. Thank you. Um any further discussion? >> Roll call. >> Council member Davis.
>> Ily >> Gardner. >> Hi. >> Gilbertson. >> Hi >> Shelz. >> Hi. >> Os. [snorts] >> Hi. >> And Nelson. I. >> Seven eyes, zero nos. >> Motion passes. Thank you, chair. >> Thanks, councel.
>> Next, I'll call on public works director Shane Stefanic on the purchase and replacement of a public works plow truck. >> Good evening, Mayor and Council. um here to talk to you about the
[clears throat] purchase and replacement of a 2027 International HV507 dump truck in the amount of $119,9152 plus tax and license with the snow removal equipment is another $177,590
for a total of $297,552. Um, currently the C CIP amount is for 290,000. Our uh tradein value for the truck will be approximately 24 to 30,000. So, we
should be able to recover that cost. Um, our truck chassis is currently 8 to 12 weeks out if we get approval tonight, but the truck won't be able to be built until 2027. So, we've got some time to sit on this old [clears throat] truck.
We'll run it for another year and then we'll trade it in as soon as the other truck is up and running. Um, yeah. Any questions? >> I'll call for a motion. >> So moved. >> Second. >> Okay, we got a motion in a second.
Discussion. >> Steve, Mr. Stfanic, is it normal for us to replace all of the plow and snow removal equipment at the same time of the truck? Is the lifespan of that equipment similar to that of a truck? >> Yeah, typically, unfortunately, due to
the corrosive nature of what we're dispersing onto the streets, uh, but be it the brine or the the the salt, um, yeah, the typically our equipment goes bad about the same time the truck does. Remind me again how many snow plows we
have. >> I do not have that number but I can get it for you. >> 11 I think. >> 11. Okay. >> Thank you. >> So based on that really and this truck is a 2013 correct? >> Mhm.
>> So if we have a useful life of a snow plow is 13 [clears throat] years. We have 11. That means we should budget about $300,000 almost every single year just to buy snow plows. Yes. >> Okay. Want to make sure everybody understands
that. >> Yeah. Keeping our streets clear is not cheap. >> Well aware. Thank you. >> Any further discussion? Roll call. >> Council member Nelson. >> I
>> should >> I. >> Gardner. >> Hi. >> Davis. >> Hi. Baggerly. >> Hi. >> And Gilbertson. >> Hi. >> Seven eyes, zero nos. [clears throat] Passes. >> Shane, do you want to take us through
the wastewater professional services agreement with Donnie Associates? >> I do. [sighs] Uh, so my second item tonight is the um motion to adopt a resolution entering the professional services agreement with Donahghue and
Associates. This is for the Geneo Turkey store nutrient removal project. Um the amount for this agreement would be $99,755. Um so this is just in case you guys need a little background on it. Um this is
for the biological nutrient removal um for our phosphorus which is required by permit. Currently we use a chemical called feric chloride. It's very expensive. This would use the biology that is in the plant. Um, just
[clears throat] making it giving it a different environment allows it to digest and process, get rid of that phosphorus naturally. Um, [cough] so we would [clears throat] save costs with chemicals. We would save costs with energy because we're able to reduce some of the horsepower of the motors that
we're currently using. Um and currently the engineers estimate for that would be a million dollars about and then the payback on the project is estimated at six years. Need a motion.
>> So move >> second. Got a motion, a second. Further discussion Rick. Thanks, >> Mr. Mayor. So this project is basically for [clears throat] geno waste then
>> uh yes that would be on the industrial side. >> Is there going to be an extra fee charged to them? >> Not that I'm currently aware of. >> No, they um if my history serves me correctly um they helped build that
plant and that was and then we do charge them additional industrial service fees every year >> for their >> for their Yep. for their increased usage. It's an industrial waste service fee, I believe, is the language.
>> Any other was this project bid for the professional service agreement or how is that how it is come to be? Donna. >> Oh, um I Well, I don't [clears throat]
Donna Hugh is the engineer that helped construct the p the plant. So that's why we continue with their services, professional services because of their history of the plant. >> Any other discussion?
Roll call. >> Council member Shel. >> I. >> Ask >> I. >> Davis. I >> Hardner >> I >> Nelson >> I >> and Gilbertson >> I
>> seven I's zero nos. [clears throat] >> Motion carries. Thanks Jane. Next I'll call on Christopher Corbett with the Bear Land lease agreement with Wilmer RC Association. >> Thank you Mr. Mayor, members of council. last year, probably around the spring,
early fall, um parks and reccks director brought the Wilmer RC association before you to speak to you about um potentially starting a RC park. And during those conversations, it was first being
proposed um on Fifth Avenue and a recommendation from city council was to direct staff to find a better location. And so staff worked with RC, the Wilmer RC association, and we landed on two parcels uh west of the IND in in
[clears throat] the west part in the western part of the industrial part. And so if you bear with me a second, we'll go west on Highway 12 and then we'll go south onto 45th Street. So the parcels here will be 959175620
and 959175630. Uh this initial lease is for 5 years um at $800 annually. Um it's aligned with some of our a land uh leases that we have as well. And this lease is structured a little different. So there
will be no permanent structures on the site. The Wilmer RC association agreed to remove those any buildings or um temporary structures that they have on site. They'll be removing those once the lease is terminated. We still re remain
or retain the right to sell the property if there is a um interest um in in developing the site. uh in your packet today is the exhibit of the site the two parcels which is probably eight acres or so and a standard lease and some of the
language that I spoke about today is in the lease. Uh two things to know that we [clears throat] did contact the county and DNR to um gain permission to utilize the um Hall Creek the dish there and just so they can clean the tracks and
the course. Uh, with that I'll stop. If there are any particular questions about the intent and the um the track itself, I'll invite the association, the Wilmer RC association up to speak, but I'll
stand for any questions. >> Is that land that we have leased out for crop? >> Currently, right now there's no um agriculture lease on the site. >> Okay, Carl.
I'm assuming that the the uh RC club will have to um either haul in some fill or make changes to the land to build our track. Is that correct? Um and
um with Hot Creek being right there, we have to be careful about I'm [clears throat] guess I'm just want to make sure that that we're taking care of Hot Creek too that that that's going to not be a concern.
>> Yep. Thank you for that, Council Member Schultz. with the we'll treat this as if it is a development and work with our engineering department as well uh to make sure that those protections are taken in place. >> Just for the record I this is a great
thing I think so. >> Thank you. >> Any other questions? >> Yes. uh if someone's interested in in purchasing this parcel uh before the lease is up, will um in order to remove
the buildings and return it to uh will that be on the city or will [snorts] that be part of the RC club >> as part of the RC club's responsibility >> even if it's shorter than the term? >> Yes. >> Okay. >> Any further Rick?
>> Mr. Mayor, so rent is due and payable first day of the season or first of the year. Uh let's take a look here at the lease. Um potentially it'll be typically when the lease is signed. So after I guess
tomorrow if the mayor and city administrator can sign it, if it's approved tonight, uh then it'll be um that day. Um, but we can also do it the top of the year. >> I just want to make sure we get the money up front before the season.
>> Of course. Yes. >> Some rental land. The farmer got the crop and then never paid us rent. So, that to happen again. >> Thank you for that. We'll make sure it will not. >> Oh, I need a motion to uh approve the
lease of the land. >> Still moved. >> Second. >> Okay. Any further [snorts] discussion? Roll call. >> Council member Gardner. >> Hi. >> Davis. >> Hi. >> Shoulders. >> Hi. >> Gilbertson. [clears throat]
>> Hi. >> Nelson. I >> OC >> I >> and Faggerly >> I >> Seven eyes's zero nos. >> That motion passes. >> Thank you. >> Next I'll call on our city attorney, Robert Scott, on a lease agreement, city
line towing. Uh thank you, mayor, members of the council. This is the license [clears throat] agreement that the city council has reviewed several times uh for the use of the area beneath the first street bridge by city line towing
and Mr. Butler. Um the uh I've got the wrong document up. It's a contemplated that this will be a 10-year license agreement. At the onset of the agreement, immediately after signing the
license agreement, within 30 days, the [clears throat] city will be acquiring a 13-foot strip of the [clears throat] existing cityline towing property that extends beneath the First Street Bridge for a consideration of $5,000.
Um, that should take place within 30 days of this agreement going into effect. And then as of the date of conveyance of that 13- ft strip, the entirety of that area together with the area the city owns beneath the first street bridge would be made available
for Cityline Towing Company's use. Uh [clears throat] the agreement authorizes [cough] Cityline Towing to install a fence and park vehicles in connection with its uh towing business in the licensed area.
The uh license fee begins at I think it's is it 36 >> 600 >> $600 a month and then [clears throat] it would increase uh annually during the of the license agreement.
Any questions? I'd be happy to try and answer them, but this is something I think the council is familiar with, and we are finally to the uh appropriate time for the council to approve the agreement. It did go before the planning commission, and the planning commission recommended approval of the portion of
the agreement that dealt with the acquisition of the 13 ft below the bridge. >> Questions or motion? >> Make a motion to approve. Second. A motion and a [clears throat] second. Discussion.
>> Justin, >> just have a quick followup. I did I misunderstand? What did you say the license fee was? >> 3600 a year and then increases by 600. >> It's uh
$3,600 annually. [clears throat] Uh which I believe is is that 300 a month. >> [clears throat] >> Okay. >> Um, and then it increases for the first two years by $600 annually. It will be payable in monthly installments, but
that's the annual license fee. >> Okay. Thank you. >> Any other discussion? >> Roll call. >> Council member Schiz. >> I. >> Davis. [snorts] >> No. >> Faggerly. >> Hi.
>> O. >> Hi. >> Nelson. >> No. Gardner. >> I Gilbertson. >> Hi. [clears throat] >> Five eyes, two nos. >> Motion passes.
Thank you, Robert. Next, uh, a call on operations director, Kyle Fox, in regards to the phase one construction services. [cough and clears throat] >> Good evening, mayor. Good evening,
councel. Tonight before you uh are two uh professional services agreements for related to Wilmer Connect. The first is uh construction services amendment number two with Bolton and Mink uh for the construction management and
oversight of Wilmer Connect phase one. Uh included in your packet is the proposal um for the work to be completed by Bold and Mink. I'll stand for any questions. >> Motion. >> So moved.
>> A motion. [cough and clears throat] Second. >> Second. >> Second. Discussion. Roll call. >> Steve. Good evening, Director Box. Um,
this is for $520,000. This first one, is that right? >> $520,393. [snorts] Yes. >> I'll make round numbers if that's okay. Approximately $520,000. >> Okay. We've already spent $1,250,000
on this project. Just in case anybody's keeping score, [clears throat] that's what we spent. And I don't expect to change anybody's mind for what I'm about to say on these next two items, but I'm [clears throat] going to say it anyway. Um [snorts] where in the proforma
was this cost projected? >> Uh in the perform it is there is a column in the perform that that accounts for approximately 1 point uh $1,250,000. Um during the evaluation of the bonding for
the project and whether or not the city was going to reimburse itself for these costs, um it was decided um and presented to the council uh that we would not be reimbursing ourselves for uh expenses
that have been paid towards the project. The rationale behind that is we're projecting for this project to be revenue generating over time. And it it didn't make sense for us to recommend uh to include
reimbursements of the dollars that were spent and pay interest on those dollars until potentially later in the life cycle. again with the idea of um being able to pay back those expenses in the industrial park over time versus
borrowing additional money paying interest on on that money now. It was the rationale. So it is accounted for but it is not factored into any um debts or any bond proceeds that we would be getting. >> Okay. But the proformer you're
referencing that $1.25 $25 million is in a proformer we did not have when we bid this project because the proformer has been updated. Right? At least the version I had in my inbox and the one you sent me today are very different. Right? And that 1.25 we've
already spent. >> We haven't spent this 520,000 you're proposing tonight. >> Where is was that projected in the original bid projections? And I'm going to ask the same question of the $400,000 you're going to ask for
from Hometown Fiber. Where was this $920,000 projected and the performer we had when we bit when this council awarded this project? >> That's a great question. um in the performer
it does not I'm going to pull that up if you bear with me one moment. The short answer is it's not accounted for in the perform documents. It is accounted for um when we typically do
uh just like any street improvement um project, there typically is a a bid [clears throat] budget or an asbid budget that includes the professional services in the project. when [snorts] we brought uh the initial I believe it was the first uh amendment
with Bolton and Mink, it was modified to reduce all of those costs to only focus on the design um and what was uh what was obtainable at that time. The reason for that being as was the
mantra of the project was to slowly introduce steps over time so we're not committing ourselves to large dollar amounts from the very beginning. Um again with the intent back then [clears throat] um was to be able to
incur those costs and repay the city back with bond proceeds. that has changed over the last two years and has changed I mean just even within the last year itself um so with the intent originally was to reimburse the city
however we've moved away from that model um with the reason I explained earlier so to answer your question it's not explicitly factored into the performer >> question you want all right so [clears throat] so we didn't account for
Are we going to have similar costs in phases two and three if we proceed? And where are they factored in? If you're telling [clears throat] us phase two is going to be 7 million and phase three is going to be whatever, >> does that include another hundreds of
thousands of dollars in services >> just so we can manage a bid? Because that's what this is. Okay. >> This is $920,000 to manage an eight-month construction project. That only costs only is relative 8.1.
That's a pretty high overhead to construction value, right? So, are we going to incur similar costs that are not accounted for on the sheet that you the spreadsheet that's been going around? Are they accounted for in there if we go to two and three?
>> Not. No. To the same reasons I just explained. >> Okay, great. I also noticed in the performer you sent me today that when y'all went voted to approve this, you counted 40% market share
being using your words I believe ultraconservative. >> Mhm. >> Right now it says 46 that we have to get to get this phase cash roll positive or cash positive in 16 years.
We have to get 40% 46% market share to get this project cash positive in 16 years. Do you all realize that when you voted for it? Okay. I'll wait till this one's over before I
keep talking about it. But I have I'll make this point. We spent over $1.2 million already. You're asking us to add $900,000 tonight, right? So we can get cash roll positive maybe in 16 years. We're so
deep in the monkey house, we don't know what stinks anymore. And I'm going to tell you what that analogy means. You all been to Como Park, right? You all walked in the primate house. What do you smell when you first walk in? Stinks to high Evan, doesn't it? But as you're
sitting there and you're watching the orangutans and the gorillas and the chimpanzees, [clears throat] you start to think, you start to forget what it smells like until you walk outside. And when you walk outside, you take that big old breath of fresh air. You think, "Oh,
it really stunk in there." Guess what? We're deep in the monkey house right now. And we we don't know what fresh air smells like anymore. It's all all I have, Mr. Mayor. Um back to the proformers when we look
at the unit prices and there's uh consulting um civil engineering network architecture uh to the tune of $1.8 million. Are any of these costs um going to be decreased for the costs that we're
covering here with Bolton and Mink as well as the um hometown with those numbers there? >> Can you repeat that, Council Member Gilbertson? I the dollars that were have been spent are they decreasing the work that's being requested? Well, inside the
proformas, there is a a dollar figure that's built into um for consulting, for engineering, and for architecture under the unit prices. >> Sure. >> Um if you're in there at this moment, um it's to the tune of about 1.85 million.
Um will we still see those costs in addition to what we are passing here today is what my question is. um or are we stacking engineering and
consulting costs? I guess my my biggest concern is I know that um Hometown specifically was pretty instrumental in helping develop some of these proformas and if they're missing their own costs. Um that concerns me.
>> Sure. Um I wouldn't in the performer itself uh this has been the document itself um is much more
complex and requires a lot more manual inputs. So the dollar amount that you see >> [snorts] >> uh just on the perform tab would represent all of the anticipated costs during the construction season.
So the initial performer to to talk uh when we look at the uh that unit price tab was estimated dollar amounts of what it would take to move forward. Uh those are not factored as for a 2020
uh a year one project. Uh so they aren't double they aren't stacking up or or double dipping or anything like that. They're they're it's standalone from where we're at today. I wouldn't I'm not I don't want to say don't pay attention
to it, but it's not impacting the performer one way or the other for that specific tab in the sheet. >> It does though. >> It goes into construction costs which is >> yes are calculated from >> um
Yes. And then I don't know which version you are using. Um those are manually overrided to only reflect the 8 million. Um what it is is 8,460,000
is what the U B bond would be for the project. So everything is factored into one number right there. And what we're passing today is not factored into that number. >> It is factored into that number. Yes. Yes. So factored into the uh one moment
and I will pull up that sheet. >> Mr. Box, would it be possible to get what you're viewing on our screens in front of us? >> Um [clears throat] unfortunately, Council Member Oct give me one moment. >> I apologize. I was not um preparing to
share any screens tonight. So bear with me one moment still comes uh so on this sheet is the tool or just a a working sheet that I've been using to help track um what we will need for
uh phase one bonding. So the bid that the council awarded is at the top of just under 8.2 million. We're we'll be recognizing at a future council meeting the change order to the industrial park reducing 8.1 by 1.6 million. Uh the bond
also includes the construction of the knock the professional construction professional services uh from Bolton and Mink which is the action before you and then the following action from Hometown Fiber. [clears throat] Uh there is additional contingency built into this
uh to the bond as well that totals of 5% for the project. All said and done uh the construction fund that we are anticipating will be 81 $8.1 million uh as well as planning for one year of capitalized interest and that number
will fluctuate uh based off the um ratings calls, based off the bond sale, based off additional information. So this number is not final or the breakout is not final. Uh what will be is uh the max that we're looking at going down from 9.2 to 8.46.
So the dollars the the two action items in your packet this evening are accounted for in the bond uh in the bond request under the these two numbers right here. So it wouldn't be any additional dollars coming out of the industrial park. The
intent is to now at this point moving forward any expenses for fiber would be in the project fund or the construction fund or an enterprise fund when we get to that point. Steve,
>> just so I'm clear, we've rated the industrial park for $1.2 million >> with no intention to pay it back. And the bond that we're about to request does not include construction of the industrial park.
>> Yes, Council Member uh Gardner, that is the path we are down. [clears throat] Of course, you I think you understand that. >> I'm leaving out the fact that you said we're going to get a grant to do the industrial park,
>> right? which we do not have and likely will cost us more money because we have to do all the regulatory guidance that goes with getting a grant. >> But as of today, we have rated our industrial park for $1.2 million
and we're about to sell a B go do a bond sale for $8.1 million that does not include or has not factored in completion of the industrial park. Um, we could certainly um go back to the
in higher bond amount if we would like to put dollars back into the industrial park, but um that would not isn't the recommendation today, but we can certainly >> That is not what I'm recommending. I'm just making want to make it very clear that that's what we're doing. >> Yep. Um
there's been a series of events that have been out of the city's control when it came come came to the last decisions and uh this is the best scenario that we can come up with or have come up with. Uh we think it's an achievable scenario. removing the industrial park from phase one although unfortunate
um was the uh best opportunity we had to reduce the overall scope of the project while maintaining the integrity of the project. Also realizing there is a significant amount of fiber being laid in the industrial park with a lower amount of enduser to connect. It is not
the si position of the city at this time to abandon that goal uh or abandon that build of the industrial park and it is our intent to get there at a future stage. Um but with the situations that have arised since the bid opening um and
moving through multiple contractors um in order to keep a project within the performer that has been laid out. Uh this was the recommendation to remove the industrial park to not reimburse the industrial park fund with 2026 bond proceeds and um
count on uh look forward to future project revenues and or um request reimbursement and future bond proceeds to the industrial park. >> It makes zero sense. >> It make what you said makes perfect sense. Don't I am not faulting you in
any way, shape, or form. So, please don't take it that way. This project makes zero sense. We started out, and I know it's too late, but we started out to get fiber to the industrial park, and we have walked down a path to where in
order to reduce cost to the project, we cut out the industrial park. Think about that. Didn't we cut it out as we expecting it? >> We don't have it yet, Mr. Mayor. I understand.
[snorts] >> I'm think Steve, I just I want to ask you a question. [clears throat] Simply a question. You said on the night that we voted to go ahead with the project
that if we voted for it, you would be you were against it before, but you would be solidly with us. I did say that and I stand behind that comment, Mr. Mayor. But here's what I don't like, and here's what I cautioned at the time. Tonight, we're adding $900,000 that were not
included in what you all bid on or y'all voted for. Did you all know you're an extra $900,000 added tonight, two weeks after you voted for it? [clears throat] We have a 5% contingency in that bid. 5%. Rick, you've been around construction
long enough to is 5% good enough for any construction project you've ever been associated with? >> Usually not. >> No, it's not. It's not even close. What's going to happen when they hit a big old hunk of granite somewhere in the ground? You know who's going to pay for it? We are. What's [clears throat] going to happen when they go through plowing through an
unfound utility? Who's going to pay for it? They're not. We are. And that's not going to be cheap because we're going to get change order prices, right? I will be behind this project, [snorts] but I will not sit here and watch this project throw money away.
And don't even get me started about the next item we're talking about. Any further discussion on the motion? >> Roll call. >> Council member OS. >> I >> Nelson. [clears throat]
>> I >> should >> I >> Davis. >> I >> Gilbertson. >> Hi. >> Baggerly. >> No. Gardner. >> No. >> Five eyes, two nos. >> Motion passes.
Kyle, the next one, the professional services of Hometown. >> Thank you, Mr. Mayor. Thank you, councel. Uh, the second item related to Wilmer Connect is professional services agreement with Hometown Fiber. Uh, these services include technical support and
oversight um for the telecommunications portion of the uh phase one project. Also included is the network operations center planning services and um for Wilmer Connect. Uh included in your packet is the proposal from Hometown
Fiber. Um this also would be paid for out of the construction or bond fund uh in amount not to exceed 400,000. I'll stand for questions. >> Questions or motion? >> Steve, >> what value are we getting for $50,000 a
month during the course of this construction project? Yeah. Uh I think it's important to know uh there are a specialized there's specialized services needed for the technical telecommunication side of this [snorts]
project. uh in addition to uh you know uh the services that we receive for engineering, civil engineering, construction, oversight um everything that we are normally or typically used to when it comes to an infrastructure project. Uh the
evaluation that or justification of why this contract is being re proposed and recommended is for a variety of reasons uh including uh the planning for the network operations center and its commissioning uh coordinating with
internet service providers and their transport networks and network operations planning and service activation readiness. So making sure the knock and the services the outplant are lit up. uh when they are turned on and also the fiber network documentation and
all the data that goes in with the GIS, everything inside the handhole, all the splice counts, all of the um all of the technical work that is done at an extra level uh that we would normally or typically receive from a a civil
engineer. Um Mr. Gardner, that's >> okay. >> I have another question. uh inside their proposal they want us to pay basically doortodoor when they travel out here for a meeting right their home office is Minnetonka would we all agree that
that's roughly two hours from here >> approximately >> they'll charge us two hours worth of time so when their principal who charges $180 an hour to sit in his car to drive out here we're [clears throat] paying that guy almost $800 or $720 just to drive to a meeting
does >> that seem fair to Uh, I know that, um, we absolutely can, um, limit that and dictate, you know, whether it's going to be remote work or on-site work, but there's going to be a a reason or a need for
staff from B, excuse me, from Hometown Fiber to be on site to work with um, whoever they need to if there's questions on the tech telecommunication side. So, if the if the ask is to limit it, uh we absolutely can limit it and do more of a remote structure. Um but we
want to make sure that they are available and on-site uh for the contractor when they would need that support or that >> I think they 100% be on site when we need them. I don't think we should pay them $180 to drive here per hour. >> We can make it a point to as have as many virtual meetings as possible.
>> I think you're missing my point, Mr. Box. I don't think we should pay in travel time is what I'm saying. Okay. [clears throat] >> The other thing I would ask is we have $200 per hour or for pdeium in here. If they have to stay overnight, how did they establish that rate? Because if I
go to the GSA website, which is the government website that most people use for PDM, it's $110 a day or [clears throat] $68 a day for meals and incidentals. That's $178, not $200. uh the predium that the rate that they
came up with um is the rate that they are requesting in the proposal. Um when I received the first proposal um this was not a area that I looked at uh it was more so in the um you know the
operations inspections and the construction oversight [clears throat] uh working with hometown uh being able to bring that proposal down from 450,000 to 400,000. I apologize. I did not focus on the overnight travel section of the document. >> I recognize that is a very small amount,
but to me it's a microcosm of Hometown's entire bid, which I think they are taking advantage of us. We paid them over $700,000 to date in the project, and they're asking for 400,000 more for the remainder of the year. I'm not even sure if that includes the $18,000 a
month that we seem to pay them every month on top of that. So, are we going to continue to pay them the approximately $18,000 a month we already pay them on top of the $50,000 they want for construction or are we done paying them $18,000 a month? >> That would be over with approval of this
contract or >> so in addition to >> No, this would replace and take >> correct. >> Okay. >> Yes. Can you [clears throat] explain the difference between what we have been paying for at the $18,000 a month rate
and what we're going to then >> So, >> and this by the way is is an shall not exceed number, not an automatic. >> Correct. it's a a 50 not to exceed $50,000 a month or 400 aggregate of 400,000.
Uh the last um cycle of uh payments that have gone to hometown um consisted of a lot of network operation center design uh that is approximately 90% complete. Uh it's a 3D rendering model that has
been completed uh to really move into an asbuilt design and project. also is the additional uh splicing tables that have to go and be uh coordinated with all of the construction plans um that were put
out to bid um and going into the um and be available for the contractor. >> But that's >> that's not included in what's coming next. So just because they're working on those construction plans, >> correct? Do we still need them and their
experts to execute those plans during the construction phase? >> Yes. So what's in the um so just to finish my um on the last part on the uh it was a lot of pre-planning um when it came to design and implementation and
construction documents on phase one u and for the knock. Uh the the proposal that is in your packet this evening is focusing on construction oversight um in a supportive technical role to Bolton
and Mink uh the testing and documentation. So it's the uh extra layer of GIS when uh the infrastructure is laid into the ground. Um hometown will go in and uh map all of the fiber
counts and all of the equipment that is going to be in a handhole. It's the optical um um excuse me the optical time domain uh refleto meter or the OTDR testing uh to
test and verify the installation quality and performance of the fiber. uh and all in all completion test results uh and accept providing the completion of test results accepted and acceptance documentation, knock oversight, uh general load
testing, surge protecting circuit routing, redundancy, uh the HVAC for the knock, the low voltage fiber for the knock as well as working with staff to provide us more of a smooth transition going into the future future to eventually take over operations of the
network. Um if that gives you some over or u uh on the testing side there is additional network and ISP coordination that we'll be doing as well. Um yes I'll pause there >> Steve. So is there no testing
requirement by the contractor that's putting the fiber in the ground? It would be the testing and verification provided by uh hometown fiber that would be um that would be completed. I off top of memory I do not recall the
requirements for the contractor in the bid dock. >> Mr. Vogy, is there a testing requirement for the [clears throat] underground contractor to test the fiber before they turn it over to us? >> My understanding Evening,
mayor, council. It's my understanding that the contractors required to comply with the specifications oftentimes in um even road construction projects. [clears throat] Contractors do do testing. However, we verify the test
results as a companion. So, um I don't have the specific contract in front of me, but they will be required to meet the specifications. So, we potentially paying for testing twice. >> I guess I'm not sure how to >> I mean, if if the testing requirement is
in the in the bid spec, which I assume it is. I haven't read the full spec, but I would be shocked if we put something out for bid and didn't require a contractor to test the fiber after they put it in the ground, unless we knew there was a third party testing coming through to test it after. Right. So, if
we assume that there's testing in the bid package, and Mr. Box just said part of Hometown's $50,000 a month is to test the fiber, in theory, we're paying for it [clears throat] twice >> as part of the contract and the verification testing. Then that would be
twice. >> Thank you. >> Any further discussion? We have a second. >> We don't have a motion yet. >> We don't have a motion. We don't have a motion. >> No. >> A question. >> Yeah. Rick,
>> thanks, Mr. Mayor. So, I thought we were paying Hometown 20,000 a month. >> So, it's only 18. >> I think that was the average. Yeah. Not to exceed 20,000 a month. They were going to have staff I mean living in
Wilmer >> as part of the operations contract. Yes. They >> must be up and running first. >> Right. There it wouldn't uh if I'm understanding, council member Fagley, um the [clears throat] the
requirement for them to be on site or have a staff member on site would take place during the operation of the network, not prior to. >> Okay. for like on call or um response times or response needs.
>> If they're on call, that'd be they'd be local then >> or would they come from the cities? Uh the um testing my memory um I believe the requirement was to be on site in Wilmer from for eight hours Monday
through Friday and then on call on the weekends and then and after hours as well but a normal eight hour day on site and then the on call everything after that to their lo specific location after hours I don't have off top of my head
>> hometown fiber do they have an office or does he work out of his house Now they have an office >> in Minnetonka. >> Um, >> one of the towers. Yes. Yep. >> They must have just got the office then because he worked out of his house in
Maple Grove. It was like three years ago. >> Okay. >> And I remember the time we had a bid from a local company. It's not in town yet. They were going to charge us 1.3 million to come with fiber
from Candy High on County Road 8, Wilmer Avenue out to the industrial park. Once they got in town, they said they would be going to residential areas. We didn't accept that. Now the fiber is out at Hog implement,
so it's like four miles closer. So, I'm [cough] we could do it a lot cheaper than what we're we aren't going to get any premium for it, but it we aren't going to either in 16 years. This isn't a fail. I'm sorry.
So, there's discussion or motion. Need a motion. >> So moved. >> We have a second. >> Second. >> Motion. Second. Any further discussion?
Roll call. >> Council member Davis. >> I. >> Ask. Hi >> Gilbertson. >> Hi >> Nelson. >> Hi >> Gardner. >> No >> Ches. >> Hi >> Baggerly.
>> No. >> Five eyes, two nos. >> Thank you mayor. Thank you councel. >> Next is announcements. And [laughter] I've got an announcement
and a request. [clears throat] City Administrator Leslie Valiant has announced that she will retire from her position on January 8th, 2027. On behalf of the city, I want to thank her for providing the city council with
advanced notice of her retirement. This allows us adequate time to thoughtfully establish the process for selecting the city's next city administrator and to ensure a smooth leadership transition.
As mayor, I'm requesting that the city council designate city administrator transition design to review and consider information relevant to the position transition on an ad hoc basis.
Council, I'd like a motion to approve the ad hoc committee. City Administrator transition designs assigning Justin Osc, Tom Gilbertson, Vicky Davis, and myself, Mayor Ree.
Please join me in thanking Leslie for her years of service to the community and for her professionalism in providing the council with time needed to plan for this important transition. I would entertain a motion.
So move Second motion and a second discussion. >> Roll call. >> Council member Shelz. >> Hi. >> Gardner. >> Hi. >> Gilbertson. >> Hi. >> Nelson. >> Hi.
>> Baggerly. >> Hi. >> O. >> I. >> And Davis. >> I. >> Eight eyes's zero nos. >> Motion carries. We didn't have eight. >> I'm sorry. Seven eyes, zero nos.
>> Is there any other announcements? >> Rick, >> thanks, Mr. Mayor. I didn't talk to her ahead of time, but Sarah Seitsma's in the audience and she had a meeting with the local realators. [clears throat] I was just wondering how that went.
I heard good things. So, >> sure. Uh I was not prepared to give a summary. Uh we've had several meetings with the realators um about the INI mitigation ordinance that was passed back in
November I think of 2025. Uh so we've met and explained the program and uh heard concerns from the realators and how we can work with them um how we can get education out there. >> [clears throat and cough] >> We met uh with a group of them at Edina
Reality. I did a lunch and learn um that was put on by Quality Title. Uh and then just last week we met with uh some of the members of the West Central Real Litters Association also. So there's been a lot of communication, a lot of feedback, um
a lot of learning on both sides. the ordinance seems to be by and large rolling out and doing what we were hoping for. Um, and there have been some questions of unexpected um unpical
types of situations with property transfers that we've been trying to get answers for those real litters ahead of time. So, I think it's been going well. The communication's been great from their uh industry for sure for us. [clears throat] you're going to continue
to meet with them then on a regular basis or just as if they call? >> Yeah, we don't have anything scheduled right now. Um so I think as the need arises we can meet in person. Um there's a lot that we've been able to do just by phone calls and emails too. So
>> okay, >> we're definitely open to um whatever they would find helpful for their side of this because they are integral in helping roll this out and communicate with the homeowners. for sure. >> Thanks for that. >> Mhm.
>> Thank you, sir. Anything else? A motion to adjurnn. So move. >> Second. We're ajourned.