Mound City Council — Transcript

Monday, October 19, 2026

Water Treatment Plant Project Bidding and Management

Water Main Replacement Project Issues (Gumwood Road)

City Staffing Levels and Organizational Strategy

Gillespie Center Operations and Community Impact

Delinquent Municipal Utility Bills and Miscellaneous Expense Assessments

Votes (6)

Consent Agenda Items A, B, C, F

5-0 Approved

Dissent: None

Moved by Councilmember Pugh [0:48:38] · Seconded by Councilmember MacKenna [0:48:47]

These routine items were approved as part of the consent agenda without individual discussion.

Pay Request Number 8 to Minger Construction for Water Treatment Infrastructure Improvements Phase Two

5-0 Approved

Dissent: None

Moved by Councilmember Pugh [0:54:49] · Seconded by Councilmember MacKenna [0:55:01]

Councilmember MacKenna sought clarification on the scope of 'Phase Two' and 'work completed' as presented in the pay request, to ensure public understanding that it's a progress payment, not a final completion payment. The Finance Director committed to providing more detailed, itemized breakdowns in future meeting packets to enhance transparency.

Pay Request Number 4 to GMH Asphalt for 2026 Street Improvements Projects 2601 and 2602

5-0 Approved

Dissent: None

Moved by Councilmember Pugh [1:17:35] · Seconded by Councilmember MacKenna [1:17:49]

This payment for the Gumwood Road project sparked a lengthy discussion about contractor performance, project management, communication with residents, and the city's approach to contract controls and liquidated damages. Residents' frustrations regarding delays, property damage, and unclear timelines were acknowledged. Staff detailed the 5% retainage policy and explained the challenges of managing contractors, especially newer ones, while striving to complete major work by Thanksgiving and restoration through next spring.

Resolution 26-68 Adopting Assessment for Delinquent Municipal Utility Bills

5-0 Approved

Dissent: None

Moved by Councilmember Pugh [2:18:59] · Seconded by Councilmember MacKenna [2:19:07]

The Finance Director presented the annual resolution to assess approximately $500,000 in delinquent utility bills to property tax rolls, effective November 16th, with an annual interest rate of 5%. Residents were advised to pay promptly to avoid the assessment.

Resolution 26-69 Adopting Assessments for Miscellaneous Expenses

5-0 Approved

Dissent: None

Moved by Councilmember Pugh [2:19:56] · Seconded by Councilmember MacKenna [2:20:07]

This resolution, also part of the annual assessment process, was presented by the Finance Director to certify miscellaneous expenses to the county auditor.

Water Treatment Plant Bid Award (Presentation only, vote pending)

Discussion only; vote not recorded in transcript.

This item began with a presentation outlining the background and necessity of the water treatment plant, driven by EPA manganese guidelines and high iron content in the water. The consulting city engineer detailed the mission to remove contaminants, the decision for a single-site plant behind Sorbo Park, and the progress made on infrastructure and permitting. The presentation included renderings and capacity details (1.8 MGD). The transcript ends before the bid results or any final action on the award.

Notable Quotes (9)

So, phase two means that that phase has been completed and you're saying no. So, okay. All right.

Pay Request Number 8 to Minger Construction for Water Treatment Infrastructure Improvements Phase Two

So we're paying um Minger the we'll just round it up for simplicity the $700,000 for work that was completed between August 21st and September 25th. As a part of this pay application, the city um expects that we get like an itemized list of like every single thing that we're paying for within those dates cuz the whole pay app will show like the total amount of the project, but I, as the finance person, want to know like what services and goods did we get during this period?

— Lindsay Erdman, Finance Director [0:52:50]
Pay Request Number 8 to Minger Construction for Water Treatment Infrastructure Improvements Phase Two

When when get to the end of the project, as Matt has mentioned, we withhold 5% of the total project cost. And then as we near the end, we withhold 5% of the remaining work. And so even things that they have, you know, presumably finished, that we have already accepted, said that you know, this is curb that drains, right? We're going to pay you for this. We still withhold an additional 5% incentive on that.

— Brian Simmons, Consulting City Engineer [0:57:30]
Pay Request Number 4 to GMH Asphalt for 2026 Street Improvements Projects 2601 and 2602

So, so on for example, on on Gumwood, we have put that contractor on notice. They've received a legal letter from us saying that they are essentially in breach of contract, which means that we are counting days for liquidated damages, but also the other tools that are at our disposal would be to, you know, the extreme would be to fire the contractor, keep the retaining funds we have, keep their bond, and then go find somebody else to finish the project. That would guarantee that we would have a gravel road over the winter, and so that's not in anyone's best interest, but that is one of the tools in our box.

— Brian Simmons, Consulting City Engineer [1:08:42]
Pay Request Number 4 to GMH Asphalt for 2026 Street Improvements Projects 2601 and 2602

Well, to reassure the residents and the people in the audience, are you still on track to have this pretty well finished except for landscaping by Thanksgiving?

Pay Request Number 4 to GMH Asphalt for 2026 Street Improvements Projects 2601 and 2602

The letters notified residents of this public hearing to come and attest, and also gave instructions on how they can pay before um, November 16th to avoid the assessment to the rolls because that comes with a interest rate of 5% annually until paid.

— Lindsay Erdman, Finance Director [2:17:15]
Resolution 26-68 Adopting Assessment for Delinquent Municipal Utility Bills

When the EPA began enforcing that health-based guideline for manganese, that was when we started on this journey. Mound is served currently by two wells. Uh, and we don't have any treatment in addition to some chemical injection.

— Brian Simmons, Consulting City Engineer [2:22:50]
Water Treatment Plant Bid Award (Presentation only, vote pending)

Our water, as we know, is also high in iron. And when you combine that iron and manganese together, we sometimes get some fun rusty water. We get some dark coloration. We get some orangeish coloration. Those things can, uh, well, they are not considered, uh, primary contaminants, which means they're not dangerous for us to ingest. They definitely can cause a nuisance sometimes, uh, and they are an aesthetic problem as well as a a huge nuisance to doing laundry, to bathing, to drinking.

— Brian Simmons, Consulting City Engineer [2:24:26]
Water Treatment Plant Bid Award (Presentation only, vote pending)

So, what we landed on in the study and what we all agreed upon was a single site plant over behind Sorbo Park.

— Brian Simmons, Consulting City Engineer [2:26:40]
Water Treatment Plant Bid Award (Presentation only, vote pending)

Ordinances & Resolutions (8)

Resolution 2656Resolution

Met Council planning grant application.

Pay Request Number 8Other

Payment request for $659,040.03 to Minger Construction for Water Treatment Infrastructure Improvements Phase Two.

Pay Request Number 4Other

Payment request for $377,944.66 to GMH Asphalt for 2026 street improvements projects 2601 and 2602 (Gumwood Road project).

1737 Wildhurst Lane settlement agreementOther

Settlement agreement on the consent agenda.

Resolution 26-68Resolution

Adopting assessment for delinquent municipal utility bills.

Resolution 26-69Resolution

Adopting assessments for miscellaneous expenses.

MDH PermitPermit

Minnesota Department of Health permit for the water treatment facility, received June 2026.

FMPPlan

Financial Management Plan, referenced in staffing overview for future position modeling.

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