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signs. When we're done, we'll take a picture outside. >> Sounds good. >> Won the series against Milwaukee. >> Welcome ladies and gentlemen. We will call the August 12th Wednesday a rare a Wednesday meeting tonight. August 12th. Fairville City Council to order. Our

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first item is roll call. >> Council member Barnes here. Jimuya. Ross >> here. >> Rowan >> here. Vloose >> here. >> Teal >> here. >> Mayor Spooner >> here. And pledge of >> allegiance. >> To the flag of the United States of America and to the republic for which it

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stands, one nation under God, indivisible, with liberty and justice for all. >> Our second item is approval of the agenda. So moved. Second. >> Motion by Ross, second by Van Sloo. All

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those in favor of the agenda signify by saying I. >> All opposed. >> Agenda is passed. Item number three, presentations and introductions, residents academy participants. Brad Fowl, please come forward. It's your show. >> Uh mayor, members of the council, thanks

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for having us tonight. Um you may recall from the 2024 community survey, one of the marks uh city staff strive to improve upon was community engagement. Um which led to the uh residents academy which we are now in our second year. So over the last uh 10 weeks we had a bonus

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week this year uh after a council chat uh focused on economic development went a little long and cut our time with community economic development short. We added a ninth session um and and they willingly attended a ninth session. So I think that speaks to the program. It's been a really neat last couple weeks or

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last 10 weeks of not only being able to get inside of city facilities um but being able to answer the questions and and get our hands on on items that perhaps people are unaware of that city government is involved in. So, um, in in appreciation of these individuals, 11

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individuals time, um, and energy and commitment that made they made to residents academy, uh, wanted to get them before the council tonight, uh, and and recognize them with a a formal recognition sign that was, um, actually produced in the sign shop, uh, out of public works. So, uh, first on the list,

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Frank McGrogan, Casey Lee Clayton Karen Lassic, Cecilia Tasios, Taylor Hansen, Timothy Cheryl, Sarah Kendall, Kevin Carroll, and Jarus Cross.

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THANK YOU. >> Thank you to everyone that participated. It's uh it's always a great program. It's our second year now. Um excited and we're looking forward to another near another year next year. Thank you.

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On with the agenda number four, approval of the minutes of July 28th, 2026. >> So moved. Second >> motion by Ran, second by Barnes. All those in favor of the minutes signify by saying I. >> I. All opposed.

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>> Minutes are passed. >> Tonight we have no requests to be heard. Item number six, consent agenda items. We have 6 A through 6G. Would anybody like anything pulled for discussion? >> Mayor Spooner.

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>> Yes. Uh, I'll make a motion to approve consent agenda items 6A through 6G. >> Second. >> Motion by Ross, second by Barnes. All those in favor signify by saying I. I. >> All opposed. >> They are passed.

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>> Public hearings tonight, we have none. On to items for discussion. Item A, resolution 2026-2028. uh approval and direction on engineering services agreement with McKina McKinstry

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Jessica Kinszer administrator. >> Yes. I'm going to uh kick this off, but invite Adam and and John if John's coming up too or I don't know if you what the plan was. Um but invite Adam and John from McKenry to come forward um as they have a presentation to kind of run through about uh what kind of the

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what results and what recommendations they're seeing um from some of the initial assessments they did. But also to really explain tonight what's before us is a directed uh an agreement to start a directed engineering study which would take things from kind of the

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there's there's potential project here down the path towards more engineering which they'll they'll talk about. The agreement in the packet is marked as draft as we've been going back and forth between Kennedy and Graven and their legal counsel. And so, um, we're we're the the things that we're not quite in

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agreement on yet are related to intellectual property and a few other things that really don't change the the cost of the agreement should we p choose to not proceed with any of the projects. Um, which is the main thing to make you aware of tonight. And so, the cost of of

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this next round of work will be wrapped into the total cost of any projects that we would be doing at the end. So there's no cost to us right now as long as we proceed with doing some of the energy efficiency upgrades that they have identified. So uh with that I will turn

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it over to Adam. >> Thank you. Thank you Jessica and uh thank you mayor and council. Uh really excited to be here today. Um, we were sharing uh with Councilwoman Barnes before the meeting that this is always my personal favorite part of the process because it's the first time that we get

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to bring forward um some numbers and start to share our initial findings of what the possibility is. And I'm I'm pretty excited about what we have to share with you today. If you want to click ahead again, I am Adam Sidell, account executive here uh in Minnesota with

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Mckinstry. I was back with you in March when you approved uh moving into this preliminary assessment process, joined by uh John Neville, our regional director. Some other folks who worked on this preliminary assessment uh for your project, we had Bob Long as well as Dan Wegner who was our lead developer on the

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project uh and Kate Pearson, our lead building or energy engineer on the project as well. Uh okay. So what we're here to present today uh and we're going to come back to this image later and talk about next steps uh but just to remind everyone

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what we talked about in March and what we're here to talk about today which is to review our findings in the preliminary assessment. So, in this assessment, uh, just like the folks that were just recognized here, we too toured all of your facilities, uh, and got our, uh, energy experts in there and started

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to identify what is a pool of potential savings starting and with the bedrock of energy savings, but also other ways to save dollars, um, implement positive things within your facilities. uh and then ultimately qualify if it's possible

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to build a good economically attractive fitting the city's goals and values self-funding project around that package of savings that matches the scope of what we're we're looking for and then ultimately bringing forward some recommendations which we'll just sort of preview at a high level and you have a

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full report of the city does uh what we recommend to move into those next steps. So Jessica already shared what that uh vote action looks like and we'll talk about that later. But that's what we're looking to do tonight is that preliminary assessment results phase. Okay. And that preliminary assessment we

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looked at our findings through these lenses and we shared this with you back in March but um really trying to accomplish at least one but preferably all three of these things with everything that we brought forward in the project. So, where can we save dollars? You know, save taxpayer costs,

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lower costs, lower capital costs as well as energy costs. Uh where can we benefit your operations, make the buildings easier to manage, make them more comfortable uh and safe for the people in them, the members of the public that are visiting them, all those things. Uh and where also can we um you know, care

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for our environment well? Uh where can we implement renewable energy? uh and where can we do that in a way that will also ultimately earn the city recognition be that through statewide programs that provide recognition or at some of the city conferences things like that uh and ultimately do all of that

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through a singular process as a self-funding project. Uh okay. So these these next few slides we'll get into our findings and then our results for the preliminary assessment and then again we'll look at the technicals of just a couple of the

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topline ones that we think are are most interesting. Uh and we'll talk about next steps. But to start off with um first we just want to thank all of your staff and the folks who brought us through your buildings, provided us all the information we were looking for and needed to complete our work as well as

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um providing their ideas and collaboration as well. and you'll see a little bit later on in this where your many great staff and Jessica's team have already provided input on how they think the next steps of the project should look. Um, so we appreciate all of their efforts. Um, some of the topline things

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that we found in terms of current conditions is that all of your folks are hard at work maintaining and and operating your buildings. Uh, and there's many places where good efficiency practices have already been implemented and the city has captured some significant financial savings through things that your team is already

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doing. But we also found places where there's opportunities to deepen those efforts, deepen those savings, take that to the next level utilizing our expertise. Uh, there's also a lot of places throughout the city where major systems or pieces of equipment are not talking to each other. Um, so that could

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be within a building. There's many places where two pieces of equipment are not operating in harmony. You know, they're both running at the same time in opposition to each other. That's driving inefficiencies. There's also places where, you know, they're not on the same control systems, building to building,

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things like that. Uh, and not only does that drive inefficiencies, it also exacerbates the challenges of all of the different department leaders who are essentially running each of their individual buildings. having their systems and equipment not talk to each other well makes that a little harder for them to try and get everybody on the

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same page and operate their buildings while they're also leading their departments. And then we the last thing was we found some significant and very cool opportunities at the wastewater plant in particular um as well as at public works that we're really excited to share tonight.

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Uh, okay. So, to start off with, um, the annual utility spend. Um, so we went back and looked at a two-year average from the last 24 months and found an average annual spend of a little over $900,000 just in your energy bills for

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the city. So, $919,000 uh in your annual utility spend. Electric and gas alone, it's about $886,000 is uh the total energy spend. Um that increases then every single year as rates increase, costs increase. Excel

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Energy with significant rate increases frequently and so that increases every year. But that's your current baseline. And what that really represents is again this is the starting point of building out that opportunity for savings. So this represents the bedrock of the opportunity to save the city money and

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build out a good positive self-funding project. Okay. Uh the next two slides are the the real meat of the financial opportunities in the results. And I just want to level set a couple things so you're looking at these numbers uh in the right mindset.

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So really what we're trying to do here is qualify that self-funding savings project that totally paid from savings where the savings generated by the work pays for the work itself. So that's the structure that we're looking at here that ultimately determined what recommendations we brought forward and

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that also at this stage really what we're looking at right now is ranges. So this is high level preliminary estimates. It's in future stages that we go to exact specific engineered options ready to go um exact numbers. Right now it's a highle estimates. So at some

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places in the next couple slides you will see ranges you know think 15 to 20% either side. There will be other places you will see a number. Those represent roughly midpoint of kind of those ranges. I want you to think in your head, you're still looking at a range of numbers and not an exact number in those

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cases. Okay. Um, as to the results themselves, um, looking at the opportunity for a self-funding project that achieves between 3.5 and 4.3 million in improvements into city facilities and infrastructure. So, a little under four

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million kind of the midpoint for that. That includes about 140,000 to 170,000 in year one and then growing over time energy savings. Out of that um 919,000 in total utility bills. So, reducing

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that by about 17% citywide both in terms of your energy usage and in terms of your bills and doing that with no new dollars out of the city budget. So, a Z budgetary impact um completely self-funded from those savings. Um that

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includes in addition um the potential for 700,000 in CIP savings. Um that's in addition to the potential energy savings. So, the the ability to either uh take 700,000 in items that are currently on your CIP over the next 5

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years and either shrink those costs or eliminate those line items completely. That comes with over a million dollars in rebates and incentives that we believe that we can bring in to benefit the city. Uh and ultimately providing a total savings for the lifetime of the project between six and and $6.5

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million. That figure, by the way, does not count the CIP savings. So, it would be 6 to 6.5 million in improvements and energy savings to the city plus the ability to shrink or eliminate up to $700,000 out of your existing CIP

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budget. Okay. Um, this is that same information, but we think it helps to showcase what this could look like in terms of a specific project. So, this sort of represents the midpoint of those numbers and how a specific project could look.

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So, once again, a totally self-funding project paid from savings, zero dollars out of the city budget, accomplishing a $3.8 million project of improvements across your facilities, ultimately saving $6.2 2 million over a

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conservative 25-y year lifetime of uh of the longest range equipment within the project. That's in addition then up to $700,000 in potential savings within the CIP on top of that 6.2 million. That would encompass about 156,000 a year in

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uh energy savings, 17% citywide reduction in energy bills, and about 1.1 million in external dollars, federal rebates, utility incentives, state rebates, things like that that we can bring in to benefit the city. Uh, okay. And then looking at what we

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can uh the non-number side of things, a few of the topline uh improvements that we think that we can achieve. Um so again that significant citywide cost reduction um headlined by really two things. One at the public works facility which is the opportunity to have a near

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net zero facility at public works. So between inbuilding energy efficiencies and some solar implementation that we're proposing there eliminating 96% of the electric use um the electric cost and obviously that means uh the emissions and things like that as well. So a near

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net zero opportunity at the public works facility uh and also a significant both financial um and technical opportunity at the wastewater treatment plant built around a combined heat and power opportunity that brings in a lot of state incentives and also allows us to

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um basically utilize gas and energy that is currently being wasted. That opportunity to help with the CIP and eliminate the need to spend some dollars within your CIP. Um, some of the technical items. Again, uh, we're going to show just kind of a summary of the technicals. We went through these, you

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know, piece of equipment by piece of equipment with your staff and we can answer any questions on that if you'd like to. Tonight, we're just planning to go through kind of the top points. But some of the systems that we'd be touching really focusing on improving and standardizing, you know, not only completing your citywide lighting

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retrofit, but also implementing some smart controls implementation so that they're all working on the same page, everybody has the same playbook, and you're maximizing your efficiency in those systems as well as some of those other systems that are listed there as well. And that comes with the

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elimination of pain points and risks as well. So risks of equipment failure, risks uh that are you know are potential safety risks uh and also it mentions utility rates risks against rising utility rates. We are very conservative in projecting future utility rate

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increases despite the fact that XL Energy is routinely coming back and requesting 8 n 10 11% annual rate increases. We are not we are very very conservative in projecting those increases. So as that rises over time your savings just increase more and more. you're protected a little bit from

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uh those rate increases over time. Ultimately getting that um through with a guaranteed result structure um and through a single point of accountability where we're responsible for delivering those results to you. Um and then looking at ways that we can utilize local contractors, your preferred

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existing local vendors, your preferred existing local contractors, um and keep keep Fable close with those existing partners and and keeping activity in the local community. Okay. Um so the next couple slides we'll just look into at a high level um some

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of what we're recommending. Okay. So this is uh kind of the grid of our recommendations. So again what these recommendations represent is what we're proposing moves into the next phase of the project. This we're not asking you

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to be absolutely sure that you want to you want all of this right now. Um this is just what we uh proposed to move into the next stage of the project that the numbers that you previously seen are built around. So this is all that stuff, right? All those check marks. You can see there's a couple of red marks in

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there. Those represent the areas where already since we delivered this report to your staff and your leadership team. We've already been collaborating with them on, hey, this, you know, this item at the wastewater plant, we have expansion needs there. We can't do that that way. There's a couple little

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changes around the fireh hall. So, we've been working with your team to adjust and mold these recommendations for the next step so they fit really what you want. But for the most part, these are our recommendations here. Oh, okay. All right. Um, I'll just I'll

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comment on just two of them then um that are in there. One of them is the the solar at works. Um, so that's tied to that 96% um net zero opportunity uh at public works. a significant uh solar field in

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the land to the north side of the garage. Um, one of the things that we were cognizant of in building that out is we know that there is the potential at least that some of that empty land is needed for future expansion. Uh, and so we made sure to design a system where

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that would not be negatively impacted in any way whatsoever. You would have full options. Um, we have a a picture I can show you in some of the backups if it's of interest to you. it only takes up a fraction of that space and we can put it on the far side of the field. So um really good opportunity there. Um

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there's also opportunities down the path um at endsteps to talk about things like what kind of you know grass and plantings you want involved natural grass and plantings for example has both economic and environmental benefits and it's very popular. Do you want trees to

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screen it from the road? Do you want it visible? all those kinds of questions that usually are kind of final decisions, very easy to adjust based on your preferences on that. Uh, and then the other one, what I'm personally most excited about, and I know some of the the folks sitting behind me are pretty

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excited about, is the second to last row there where it says CHP turbine. That's a combined heat and power turbine at the wastewater treatment plant. Um if you visit your wastewater plant, you'll see like like all wastewater plants, there is a methane stack that is um kicking

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off a lot of waste methane and it's just burning 24 hours a day. It's just burning off that waste methane, right? And not being captured. That's something that I know the city has hoped to try and capture and utilize for quite a few years. We believe and are confident now we're going to be able to do that. So

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basically taking a significant amount of wasted energy that's just being burned off and put that back into both generate electricity and help supplement the boilers that are part of the wastewater process. So really exciting with that. There's some state dollars that are in that that help make that possible. Um

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but we're really confident we're going to be able to get that done and make it really really economically attractive frankly to the city. So that's a very exciting one. Okay. Um and then this last one just talks about next steps a little bit. I said I would come back to this image

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here. Um so we've here we've laid out um these are our results for our preliminary assessment again that grid that's what we recommend to take now into next steps with the directed engineering study. So that's the process through which we take things from these

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highlevel initial estimates informed by our experience in the industry and then engineer them down to exact final numbers down to the dollar guaranteed savings. So exactly how much we guarantee you'll save every year and that means guarantee as well as on the

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price side. So we'll tell you save this much in years 1 through 20 and if that number doesn't come out we owe you the difference. Um you also get an exact guaranteed price as part of that. Uh and ultimately so working down doing the heavy engineering uh and moving it to the point where the final output of that

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is a project that's ready to go ready to be approved or a couple of options for a project. We continue to work with you and your staff throughout that whole process. So everything on that grid that we recommend moves into next steps. You're not committing to any one of

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those things or all of that now, but we're just we are agreeing that we want to move towards doing a project and if we get to the end and it's hey, we don't want to do this one for whatever reason, you maintain this is your project. You maintain control over that. Like the

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first PA phase uh up to this point, there is no upfront cost to that. There is a cost associated with the directed engineering study and this is where we're doing the heavy engineering significant significant work but that all just gets rolled in to that end cost of the project. So that too has to be

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self-funded by all those energy savings. So that cost is included in that $3.8 million example project that we showcased earlier. The only way that we end up collecting that as an independent fee is basically if we get all the way to the end, we deliver as promised a couple of project options to move

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forward with and for whatever reason at that time the city just decides actually we're just backing out. We just ask to be compensated for our time at that point. But um typically that doesn't happen to us because we're very happy with what we're able to deliver. So in fact that happens almost never. But again, no money up front. Typically,

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you'd have to put out money up front, hire engineers, hire architects, hire all those things with the hope of getting those things later. We're very confident we're going to be able to deliver that great project um through self-funding. And I believe with that, that's it. So, um that's that is the

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next step of how we move forward. That's what your resolution would accomplish tonight. Be moving into that dees agreement. Um to Jessica's point, there's a couple the lawyers are working on like a couple more clauses. I wouldn't describe it as anything overly significant. Just lawyers always want to

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change something. So, and it's it's all good. It happen with every project. There's always a couple things here and there and it's all good. Any >> questions? >> Sure. Why not? >> Yes. >> Thank you, mayor. Um, can you give me a couple examples of what would be the CIP

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savings? >> Yeah, absolutely. So, um, you have I might be able to list all of them. I think there's three included in that 700,000 number. You have some dollars for continued lighting work over the next couple of years. Um, we think we can handle all of that just within the

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project, within the lighting scope that I mentioned. Um, totally self-funded, so you could just take that right out of your CIP. There's also, um, some significant dollars at the public works center for some major HVAC replacements and retrofits. Um, and we think that we can either take care of that need

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entirely, um, or shrink it substantially so that you don't need to invest all those dollars within that. Those are kind of the two largest, uh, within that figure, um, that we think we can accomplish. >> Um, so we would, the city would have to

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make $3.8 million in upgrades. What type of time frame are we looking at to make those upgrades? >> Yep. So Jessica, if you want to go back to the kind of next step slide, it lays that out a little bit, I think. >> One second. Can I close the power or I

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close the presentation? >> Um, while she's getting that up. So the dees takes about >> about 90 days typically to complete. Sometimes a little more, sometimes a little less depending on how much we collaborate, if we make a lot of changes during the process with you. Um, and at

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that point you have uh a full report again. So the report that we've delivered at this point for the prelim was about 25 pages. The dees report is like 300 pages has full engineering drawings. It's ready to go. Uh it's ready to go into a contract. Um and a

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couple more slides. Yep. There. So the DES would take about 90 days. It's delivered to the city. Uh and then basically we start working with you on typically we bring like you know projects ABC or AB and we work with your

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staff and the council to make your choices on that. Maybe we incorporate things like we really want uh trees at the solar for shielding or we really don't want them. Things like that that we can make little adjustments on. Uh and then we sign the contract.

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You approve it. Um, and then it takes anywhere from typically about six months to a year um for the actual work to get done. Uh, and by the way, you're not responsible for any payments on that um through the most popular financing structures until that work is done. Um,

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so your savings are already in the door um and you've experienced those energy savings before um the payments attached to those savings even come due. So you already have the money in the bank. >> So basically the uh 3.8 8 million in upgrades. We would have to make those in a fairly short window of time moving

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forward. >> Correct. We deliver those. So, once we have the dees um out in about 90 days, we're ready to go and we're responsible for delivering them and um uh getting you your guaranteed savings. So, we get those to you ready to go. >> Uh Administrator Kensner, do you have

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any idea what how would we tackle that project? I mean, would we bond for it or >> So, so that's part of it. we would be doing like a a lease, a 20-year lease of the improvements, and that's how they would be financed. And so, we won't be going through a traditional bonding. Um,

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we'll be working with staff at McKinstry to help us direct us to some some different financial resources, but essentially, it becomes like a a loan that would be on the books, but you wouldn't put it on your debt service levy. Um, the best way that I think I

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can explain it is if we had uh $100,000 budgeted for in electricity use and in city hall for, you know, the next fiscal year. Um, and we did saving we did projects and things that were expected to take that down. We would be still

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keeping our $100,000 budget, but there'd be a portion of that that would be directed towards the loan payoff. >> So, it would Okay. So, it'd be like a a lease payment, >> correct? >> Uh, for 20 years. for 20 years. And then um the piece that's that's part of that as well is um some of this is going to

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be sewer. So some of it will be general funds. So there's going to be some different funds involved where um we might potentially have more than one loan based on whatever fund um the improvements are for to keep those separated. >> And and because it's uh set up as a lease, it would not go on our loan

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statements. >> Correct. It would be counted in our financial statements where we do have to report on our our leases. um and amvertise those over the life of the the lease. >> And because we're not using any cash up front, it also wouldn't affect our cash

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balances. >> Correct. There I will say there's one thing um uh part of this project is going to include the the LED retrofitting of the street lights downtown. We are bringing cash into that one because we have specific funds for

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that purpose. Um, and if there are other things that come up where they're already in our budget, we'll kind of be going through and making decisions of is this something we say we have cash to bring to it or is it we say nope, we're we're going to remove this from the budget and and move forward. Um, and I

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will say we already did remove the HVAC from public works from the CIP that we're working on. So hopefully uh hopefully that holds true that we don't need to put anything back in there. >> Have you and the directors met over this and molded over? I mean what's the director's recommendations

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>> over many months? I think you know one of the things we talked about with the budget process and bringing forward the new position of a facilities manager is that there are a lot of projects there are a lot of needs that our individual department heads are not able to manage in their facilities. Effectively

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throughout this project, um, Mckinstry will be acting as our facilities manager and getting the work not only designed, bid, and um, providing construction oversight, but then making sure everything is performing as it should on the back end as well. So there's a

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little bit of a a we can take a a little bit of a breath to kind of put it that way of there's going to be some assistance on the facility management side um for part of 2027 just with the projects that are planned and really um

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I think a big piece that will be very helpful is the uh the building automation systems and getting things to a point where hopefully things uh communicate better, which will make it easier for departments who are managing those systems to operate their

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buildings. >> And then I think this is my final one, but do we have an estimated uh annual cost on this lease? >> We we won't until we kind of come up with what are those those costs? But I think in some initial scenarios that

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were run kind of very early on in the process, we were maybe at like the 500,000 or 250 thou. can't remember exactly, but um you know looking looking at paying it off over 20 years, whatever the the final in number is um and then the rebates and things would go towards

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that lease payoff as well. >> All right. Thank you, Mayor. You got it. >> Dr. Ke, you're up next. >> Um so my hunch is you guys don't like to write big checks at the end of this thing for to make up for it. Yes. So your estimations are probably even low

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and we'll we'll we'll potentially save more than than what you're projecting. >> That's correct. Um we in fact our average overperformance beyond what we guarantee uh in the final contract is 10 to 12%. And um that all goes back to you. We do not we come back and verify

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it and show it to you, but we don't get a bonus on that or share in that. That all goes right back into your budget. So you can expect a 10 to 12% over performance would be our typical That's it. Any other questions? Mandy Barnes. >> Yeah. So, if I'm understanding this right, there's um a 20-year, we'll call

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it a lease, but it's a 25 year savings. So, is the contract for 20 or 25 years? >> Contract is for 20 years. Um much of the equipment though lasts at least 25 years. So, we showcase the savings out to 25 years. The solar, for example, is

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a is a good example. They're rated with a 25 to 30ear life. We're very conservative to the councilman's point and we showcase 25 years of savings. Those panels will be continuing to operate and produce at a very high level into 30 35 possibly possibly longer than that. Um but we like to stick to 25

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years in terms of what we're showcasing. >> John Oh, Matty >> John. >> So on the solar potential, what have you identified? Uh the the item that's still in the recommendations moving forward is the item at uh public works. We investigated

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uh one at Wastewater, but um our understanding is that there's the potent need for potential space to expand the processes in the future and it it wouldn't work technically in order to do solar there as well. >> Okay. So, since you started doing this, we've done some construction at Vioaduct

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Park and uh putting in a structure to cover the ice. I was looking at that this afternoon. Could that host solar? Is that something that you could add to your study? >> Yeah, we could. Uh what we could do is um take a look at that in a similar fashion. Um once we've started in the

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dees, take a look at that in the same fashion that we've done this preliminary assessment and then if we think it is feasible and a good opportunity, we could add that into the dees. Absolutely. >> Okay. And then one other point, you're talking about getting these buildings to talk to each other so they can all

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coordinate. Is that correct? >> Yeah. So, getting more of the equipment on the same control systems. Um, a big piece of that is what we call retrocommissioning, which is essentially making sure all of your buildings are operating efficiently, the equipment is operating properly. Um, their schedules

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are correct. Uh, and so you have not only the most efficient operations possible, but you also have the same playbook across your buildings that will do things for the managers and the the directors of your various departments as well, like they won't have to call out to outside vendors that cost a couple

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hundred bucks every time they get on the phone and need something adjusted because they have the toolbox in their hands and can address things internally. We haven't projected savings like that, but we really did try and look at the operational side in this project. I would say in particular on how can we

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just help your various directors who are running their departments, running a police department, running a fire department, etc. um while also trying to run their facility and really help them um operationally everywhere that we could. That was a big priority. >> I presume you'll be working with it and

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>> very cool. We we've worked with Kevin very close. >> We want these networks to not be connected to the internet for obvious security reasons, right? So, as you're building this out, keep that in mind. I'm I'm a big fan of segregated networks

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on things like this. >> Absolutely. >> Else favor this. This is one of the reasons why when the facilities manager up, I kind of was against that at that

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time because I knew this was coming and I think that also to offset the costs that this will be take over that position. All right. Anything else? Thank you. >> Thank you. >> All right. This point in time

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a motion. So moved. Oh, I have a resolution on 2026-228 to approve the direct engineering savings agreement with McKenzie by Chuck Teal and seconded by Manzy Barnes. All those in favor?

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>> I >> I >> All opposed. On to ordinance 2026-11, amendment section two, the city ordinance regarding salaries of mayors and elected officials. Jess, >> yes, this is a first reading of an

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ordinance to amend the uh uh section of our our um code um that sets the salaries for mayor and city council members. We had a discussion about this at a work session. And so each are increased by um $1,000 as was directed.

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And then the the big thing would be for this to go into effect, the second reading and publication would need to take place for this to go into effect starting January 1 of 2027, the the second reading in publication would need to take place um before the next election, which would be in November. So

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we have plenty of time to work with here. >> Questions? balance and I'll entertain a motion. >> Mayor Spooner, I'll make a motion to approve ordinance 2026-11.

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>> Second. >> Motion by Ross, second by Van Sloo on ordinance 20261. This is a >> council member Barnes. I >> Ross I >> Rowan Ille. >> Seal. >> Hi.

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>> Mayor Spooner. All right, that motion passes on ordinance 2026-10 vacation portion of Calvary Drive. Harry Davis, Spanish manager. >> Thank you, mayor, and good evening, council. Uh, so this ordinance um is

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coming back to you all for a second reading. Uh, there have been no significant changes to it. In addition to the ordinance, you also have a uh recommendation for a summary publication. And just as a reminder that requires

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57s of council to vote on that >> question. Second. >> Mayor Spooner. >> Yes. >> I make a motion to approve ordinance 2026-10. >> I'll second.

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>> Motion by VL. Second by Rome for ordinance 2020. >> Bars. I >> Ross. >> Hi, >> Rowan. >> Hi, >> Vince. >> I >> Seal. >> I >> mayor Spinner. >> I That ordinance passes. Summary publication. >> Mayor Spooner.

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>> Yes. >> Make a motion to approve the ordinance 2026-10 summary publication. >> Second. >> Motion by Ran, second by Vance. I >> All opposed. I pass. On item D, Larsson

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Properties edition, 151530th Street. Once again, Harry Davis Planning. >> Thank you, mayor and councel. So, the project in front of you is um at least the property owner is Larson Properties LLC. Um you might know it more as the

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Allstate Peterbuilt uh dealership property. Its location is at 151530th Street Northwest. Uh the proposals in front of you are preliminary and final plat and then a variance for a dead-end street. Here's the property in relation to

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different parts of Farbo. And then when you zoom in, you can see that this is perhaps one of our uh remaining undeveloped portions of this part of our industrial park. It's at the end of Industrial Drive and you can see Allstate Peterbuilt there at the corner

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of 30th in Industrial. the request in front of you um for the preliminary final plat. It's to replplat these two parcels that are involved um to combine into the subject property. uh one would uh there would be one

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buildable lot that would result and it would be an extension or an expansion of uh Allstate Peterbuilt and then there would be one outlot that would as a result of this expansion include some storm water uh facilities but would also

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hold uh hold future development um on the on the southern portion of that outlot. the variance. Um so Industrial Drive currently goes all the way down within its rightway. Um the requirement

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by uh public works as well as uh city staff is that there be a turnaround at the end of Industrial Drive. And that's for a variety of reasons, everything from snow uh to EMS. And through that extension, it actually pushes it past

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our maximum of 650 ft for a dead-end road. So on the left hand side here is the final plot. It's uh relatively straightforward. And then on uh the right hand side is the variance distance. So that's approximately 716 ft

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um when the maximum is 650. Um for the pulary and final plat zoning and uh subdivision standards. And then for the variance we do see that there is a practical difficulty um established as you know the road currently exists.

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there needs to be a cold sack. Uh and that really is an improvement and a win-win for everyone. Um in summary, it meets our comprehensive plan and zoning requirements. Planning commission did uh provide unanimous recommendation to the city council in uh just you know for for

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approval of this project. Uh there were some members of the pro uh of the public there that were concerned about the expansion of all state pet and you know any loss of screening or buffering in between those properties. Um just to go

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back to a a previous uh slide, you can see that on the on the southern side of the of the yellow properties, there's actually a really long uh parcel that's extended. That was actually a um for lack of a of a of a better way of

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explaining it, parkland dedication. um that currently includes um a trail facility and that was in some ways pro to to provide that trail facility but also to guarantee that there would

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remain a strong um uh foliage buffer in between the neighborhood to the south and the industrial park uh that was developing at that time to the north. So uh there are two re two uh motions in front of you today. One is uh for

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resolution 2026-229 which that is for approval of the preliminary and final plat. Then the second resolution is to approve the requested variance. And with that, I'm happy to answer questions project.

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>> All right. Now, seeing no questions at this time, I'll entertain a motion. >> Mayor Spooner. >> Yes. >> I'll make a motion to approve resolution 2026-229. >> Second. >> Motion by Ross, second by Tele. All those in favor of resolution

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22 2026-229 all those in favor say by saying I >> I >> all opposed passes under the next one the variance >> mayor >> spooner >> yes >> make a motion to approve resolution

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2026-230 >> motion by second by Barnes on resolution 20230 all those in favor >> uh I all opposed. That also has passed. Item E, resolution 2

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2026-231, approval of a conditional use permat for a craftsman. >> Yeah, Harry Davis tonight. Wow. >> Thank you, mayor and councel. Um, so the next uh project in front of you is for a

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craftsman studio. It's uh a prop it's for a property that's owned by LMSG Properties. LLC and the applicant is actually Curtis Johnson uh who is the owner of Shurut Woodworking. Um he's looking to move his uh business to this

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location out here on the on the southern side of of Lindale Avenue. This is the location map in relation to different parts of Farbo. And then when you zoom in, um it's this uh sort of industriallook building. It is a it is a largely metal building. Um, and there

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have been a variety of different uses that that have existed at this location. Um, the conditional use permit in front of you would be to allow 8,000 square ft of Craftsman Studio, uh, which would be this woodworking business, uh, within this existing building. Um, the reason

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for that is that we have a maximum for properties that are zone C2, and that maximum is 2,500 square ft. So, that's the reason why this is in front of you today. The project will be utilizing uh one of the center bays for this building. Um

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that center bay is about 8,000 square feet. There's a number of other bays uh within this uh particular existing building. One of them is an existing electric company and the other two I believe are currently storage. Um and I

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mentioned before that there were previous uses at this location. They also had some very similar equipment. Here's just some outside uh pictures of the building. Um you know, there are some large over uh overhead doors. Um as

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far as I understand, the applicant is proposing to keep all all their equipment inside as well as their um uh trailer for their business when they're taking product to a work site. Um from the conditional use permit side

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of things, it's an existing structure. um there's enough parking at this location. Uh there are no major issues that staff can identify. So, you know, generally we do think that this is meeting our comprehensive plan and zoning requirements. Uh from the planning commission side, they did

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unanimously recommend in favor of this project. Uh there were some members of the public that showed up um from the neighborhood just to the east that were concerned about some of the noise uh of of the equipment running. Uh, apparently historically there were some businesses

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that would keep their overhead doors open and then that sound would kind of travel out, you know, sometimes during the winter, sometimes during the summer. Um, there's a condition here that while equipment is operating that the overhead

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doors remain closed to hopefully deal with with some of those concerns. So recommendation in front of you is uh to approve resolution 2026-231 which is for the conditional use permit. With that I'm happy to take questions.

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>> Any questions for S? >> Thank you mayor. Um uh Mr. Davis, the uh the building right to the south of that uh formerly many many years ago the Harley-Davidson shop and then it went to uh Southern Minnesota Woodcraft I believe. >> Mhm.

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>> How was that one zoned? >> Um I believe all of the properties in that area along Lindale are all zone C2. >> Okay. So first maybe they maybe they did have to

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come in and get a a variance or a cup on that one. And I guess it was before my time when that woodcraft was there. But I my question was basically is it easier just to reszone it because what if they what if they want to expand past their 8,000 ft? Then do they have to come back

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to us again? And >> yes. Yeah, that would be correct. >> Is there a simpler way to do this so they don't have to jump through those hoops a second time? Uh, mayor, I I suppose it could be amended so that in the event that the applicant,

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you know, just kind of thinking about some of the some of the bay sizes within this particular building, um, if they decide, hey, you know, we want to go to the 12,000 square foot um, sort of mark in terms of of the different bays, I

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suppose you could allow up to 12,000 square feet. Uh, it's not the request in front of you. Right. So, no, I'm just I'm just kind of curious be, you know, whether reszoning it >> would be easier or if you know, just something so that

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>> it doesn't have to come back. You know, thinking of the uh the small business owner and not wanting him to jump through hoops again. But if you tell me this is the most efficient way to go right now, I mean, I will trust you. And mayor, just to just to add, if it were to be zoned, say like, you know,

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even our light industrial district, there would be uh less restrictions on noise, particularly um you know, outside generated noise and so I think that that might be of concern to those neighbors just to the >> Okay. So probably better we keep Okay.

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Thank you. Thank you, Eric. No more >> Andy Bars. >> Thank you, Mr. Davis. That was my question was the noise. I did see a few neighbors were um a little concerned with that and it is nice to have doors up in the summertime, but I understand the noise is an issue. My question is what are the hours of operation for the

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business? >> Yeah, so the hours of operation for the business are from 7:00 a.m. to 5:00 p.m. It's not proposed at least by the applicant to be, you know, operating before then or after 5. And I believe it

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they have requested to not operate on Fridays. I think it's just Monday through Thursday if I if I'm recalling correctly. >> So, what I'm hearing then what you said is they have to keep the door shut the whole duration of the day. >> Correct. >> Okay. Thank you.

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>> Right. Any more questions? >> Mayor Spooner. >> Yes. >> Make a motion to approve resolution 2026-231 with the caveat that it allows them to expand up to 12,000 ft.

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>> I second that. I have a motion on this. >> Yeah. Little discussion. Just >> make a discussion on this. >> Just clarification from either uh Harry or Administrator Kenzer. Is that >> I I would recommend two separate actions. That's if you want to amend the

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resolution that's before you that you amend the resolution and then vote on the resolution as amended. Assuming that amendment passes. >> We did this two weeks ago. It is difficult order.

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>> Oh my god. I All right. So, >> I withdraw my motion. >> No, no, no, no. >> Yeah, withdraw your motion. >> I withdraw my motion. >> I withdraw my second. >> Second. Okay. I'll make a motion on the original

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>> to approve it of 8,000. >> Well, I think the first step would be if there's a motion to amend it. >> A motion to amend this. Go ahead. Make your >> I make a motion to amend 2026231 to change it up to to allow them to have

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up to 12,000 ft. >> Second >> motion by road, second by Vance Loose. All those in favor signify by saying I. I. >> All opposed. That passes now.

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>> Go ahead, Royal. on the approve on the to approve the amended motion. >> I'll give this a shot. Um, mayor, I'll make a motion to approve what is I believe still resolution 2026-231 as amended.

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>> Second. >> Motion by Ross, second by Vance Loose. All those in favor signify by saying I. >> All opposed. Motion passes. Thank you. On to item F, resolution 2026-234,

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order improvements and plans and established bid dates for our tree program. Mark Duchain, director of engineering. >> Thank you, mayor, members of the council. Before you tonight is a resolution to approve the second of our two tree removal programs. Uh, this program is part of the relief grant that

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the city was awarded from the Minnesota DNR earlier this year. Uh, so this program is allowing us to have 40 properties remove 118 diseased or dead trees. um including the stumps and uh replace them with trees in kind of ones

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that are taken down. Uh this grant does have stipulations that it was income qualified restricted. So we did have to go through an application process with properties to determine if they met the income qualification restrictions. Um and like I said, we had 40 properties who met that total of about 118 trees.

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Um, so these removals again are funded through the grant program and the city's housing redevelopment authority has also pledged an additional $40,000 to this program. Um, we're holding that in reserve a little bit in case um, bids come in over what we've estimated for tree removals and whatnot. So, we feel like we'll be able to accomplish all 40

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properties between the grant funds and the housing redevelopment authority funds. If there's additional funds, we may solicit for additional properties. I believe we actually have a few folks who qualified but got, you know, it was first come first serve. We have a few folks who are on the waiting list for

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this. Uh bids will be due September 2nd and we do have a completion of this contract of May 1st so that we can get through the grant closeout process with the state in time before the fiscal year ends. So I'll certainly stand for any questions, but we are asking for approval of resolution 2026 234.

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>> Mr. Duchan, could you tell me the completion date again? >> It this has a completion date of May of 2027, May 1st. Um, our other program, we had a completion date of this year because we're funding that with city funds and then we need to get those on assessment roles for next year. Um,

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these are not being assessed. So, there's no deadline. So, if a contractor wants to do tree removal over the winter and stump removal in the spring, um, we'll likely won't get any trees replanted until the spring. So, we gave them a longer deadline here. Hopefully bring our cost down a little bit. >> Another question.

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>> Mayor Spoon. >> Yes. I'll make a motion to approve resolution 2026-234. >> Second. >> Motion by Ross, second by Barnes. All those in favor of the motion by saying I. >> All opposed. Pass. On item G, resolution 2026-235

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accepting professional service proposal for the Woolen Mill Dam reconstruction. Mr. Mark Duchain again. >> Thank you, Mayor, members of the council. Uh before you tonight is a resolution to accept a professional design services proposal for the Woolen Mill Dam uh from Bar Engineering. Bar Engineering is the consultant who

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completed the feasibility report and the preliminary engineering that we've been working on since July of 24 when the dam was compromised due to the flooding. Uh at the June 16th, 2026 council work session, you'll recall we presented that final feasibility report and per council direction, we are pursuing a 30% design

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plan set and environmental documentation for the option to replace both dams with Rock Arch Rapids and upstream Rock Arch Rapids. So, it's step the river segment down um kind of between south and north Alexander parks till we get to the river while preserving fishing opportunities

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and recreational opportunities um and enhancing some areas around the river. So, this proposal does get us to 30% design. Uh we're recommending only going that far at this time um because we'll have a good sense of both approvals from regulatory agencies as well as potential

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funding sources. Um I don't think it's prudent at this time to go any farther than 30% design. Um I will mention that probably 70 to 80% of this proposal is work that we'll have to complete regardless of what our ultimate final option is. We have to do the environmental work because of the FEMA

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federal funds. Um we have to do some of these other things again regardless. So even if we get to a point where either regulatory agencies don't support the options or we can't find the funding and we have to go back to something else again I would say 78% of these funds we would have had to spend anyway. So it's

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time to get going as this was an unbudgeted 2026 project and we would like to get going as soon as possible to put ourselves in line for grant applications as well as being in line for any legislative bonding requests that may be available to us in the upcoming legislative session. And we are asking the council also to approve a

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budget amendment to fund this portion of the work through the storm water utility fund. So this will come out of fund 603. So with that, I'll stand for any other questions, but we are recommending approval of 2026 235.

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>> All right. Any questions? >> Spooner. >> Yes. >> I make a motion to pass resolution 2026-235. >> Second. Motion by Barnes, second by Van Sloo. All those in favor signify by saying I. >> I.

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>> All opposed. That is passed. Bids. We have none tonight. Item number 10, boards, commission reports, announcements. Anybody anything? Congratulations, Heather, and your

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staff. Last night was a big day for >> We're on top of it. Yep, they were. So, congratulations to all the candidates that move forward. All right, I'll take a motion to adjurnn. >> So, move second.

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>> Second by mo second. Motion by Vans, second by Teal. All those in favor signify by saying I. >> I. >> We are adjourned. One vote. We're going across the