Evening and welcome to the regular city council meeting for the city of St. Peter, Minnesota. It is Monday, October 27th, 2025. At 7 p.m. we were we are called to order. Would all please rise for the pledge. I pledge algiance to the flag of the United States of America and to the republic for which it stands. One nation under God, indivisible, with liberty and justice for all. >> Everyone should have received a copy of tonight's packet. Are there any revisions or corrections to the agenda hearing? None. Is there a motion to approve? Second. >> All those in favor of approval say I. >> I. Any opposed? The agenda is approved. Uh the minutes of our last meeting appear on pages 5 through seven of the packet. Are there any revisions or corrections? Hearing none. Is there a motion to approve the minutes as distributed? >> So move. >> Second. >> All those in favor of approval say I. >> I. Any opposed? The minutes are approved. We have time on our agenda for visitors. Uh members of the audience wishing to address the council on an agenda item later in the meeting can do so at this time hearing no visitors. We also have time for general visitor comments if anybody'd like to address the council on an item that is not on the agenda hearing. Then we will move on to the approval of the consent agenda. uh consent agenda appears on pages 8 through 28 of the packet and concludes with a resolution that appears on page 29 of the packet. The consent agenda in uh includes the following licenses. A tree worker license to Trinity Tree Service for the dates that are printed in the packet. A temporary liquor license to Nicollet Lodge number 54 at the location and dates printed in the packet. The SPCC room 215 through 217 renovation project pro uh proposal is awarded in the amount of $93,637 to Web Construction. Parking on Valley View Road will be modified to allow overnight parking on the south and west side of the roadway. the following employee appointments, Michael Wrath, Sam Barnick, and Grace Tim for the positions and wages listed within the packet, as well as the schedule of dispersements for October 9th through 23rd, 2025. Is there any discussion of any item that's on the consent agenda? Hearing no discussion, is there a motion to approve? >> So move. >> Second. >> We have a motion and a second. Call the role, please. >> Mayor Noel, >> I. Council member Johnson. >> I. >> Council member Pettis. >> I. >> Council member Ram. >> I. >> Council member Sharstrom. >> I. >> Council member DVOS. >> I. >> The resolution is approved. We have no items of unfinished business tonight. So, we will move on to our first item of new business, which is the community center transfer switch bid acceptance. And John is here to talk to us about that. Thank you, Madame Mayor, members of council. Um, this is a discussion that we've had at a few workshops throughout this year to upgrade the infrastructure and the transfer switch system for the community center as well as back in July. Uh, the council did approve that we could go out for bids for this project. Um, I am excited to say that the bid ultimately did come back less than uh we anticipated in our budgeted amount. Um, we did only have one bid um from Lake Town Electric. uh they were uh able to join us for a pre-bid walkthrough where we um walked through with uh Eric Borsth and myself as well as our contracted representative from ISG to make sure that the scope of the project was outlined. Uh the bid came back originally just under $200,000, but as we reviewed it, there were some things that were missing. Um we did continue to work with that contractor to address those and we were still able to come in um under our budgeted amount of 250,000 with a amount of 230,540 um dollars. And so after working with ISG to review the specs of the proposed updated bid as well as the staff recommendation, I'm hoping that uh council will approve the resolution on I believe it is page 32 um to approve this bid and award it to Lake Town Electric. >> Thank you, John. Uh anything to add, Todd, before we get to questions? Questions, Ben? >> Are there any contingencies on this project? Anything anything rolled into there just in case we're not at 230 or is there something already built into the project >> in case like a 5% buffer 10% buffer? >> Not specifically this is their bid $230,540 with no contingency. >> That is with no contingencies. However, being underneath the $250,000 that we had budgeted, we are comfortable again doing multiple walkthrough with this contractor. We do believe this is where it is. um and they have they have been working with their subcontractors to make sure that these are the amounts that they are planning to proceed with. So we feel very comfortable with this and that we would stay within the budget if there were change orders. >> Additional questions? All right. Hearing nothing further, the resolution awarding the bid for the St. Peter Community Center electrical infrastructure and transfer switch replacement appears on page 32 of the packet. Is there a motion to approve? >> Second. >> We have a motion and a second. Call the RO, please. >> Council member Johnson, >> I. >> Council member Pettis. >> I. >> Council member Ramp. >> I. >> Council member Charstrom. >> I. >> Council member Devos. >> I. >> Mayor Noel. >> I. The resolution is approved. Thanks, John. >> Next item of new business, St. Peter Food Co-op Revolving Loan. And Ben is here to talk to us about that. >> Thank you, Mayor Noel and members of the council. Um the food co-op is looking to um has is requesting to extend their loan um their balloon payment. Um the food co-op was originally opened in 1979. It was on the corner of Front and Broadway Street. Um a small little building next to a couple of the other that eventually got hit by the tornado and then they were demolished. They moved across the Broadway over to the Jake Pizza kind of doubling their size. um spent many years there and did well. And so um then in uh would be 2010 they decided to double in size again and moved to the old Chevrolet dealership property. Um so with that they in 2010 and 2011 they um asked for a loan of $350,000 and that was to partially finance the uh renovation and furnishings of that new building and that property. So, um, with that, it was it was a 20-year amortization, and the EDA council reviewed that 10 years later, so five years ago, and they extended that, um, with another review in 5 years, which is due on December of this year. So, uh, they came forward before the EDA here, um, a couple days ago and, um, asked to extend that loan balloon. um otherwise they would have to pay the entire amount off. The EDA loan review committee and the EDA both recommended approval. Um but just one note on page 34 at the top, the interest rate was increased a little bit to 5.25. So the policy that was adopted over the last year was um if there's if it's backed by real estate, you get 2% less than prime. So prime's at 7.25 right now and it's secured by real estate. So they're at 5.25. 25. One thing that does is that provides a little bit of interest into our evolving loan fund to fund things like the ADA program and other things that the council um does. So, it's it's kind of a win-win. Um so, even though they had 3%, it's now 5.25% and they were okay with that. So, um with that, it would be staff's and the EDA's recommendation to approve this extension. >> Thanks, Ben. Uh any discussion, Brad? Um Jeff, I'd like to add some feedback uh from the EDA meeting. It was I there there was no question about this getting approved. Uh everything was everything was fine with it and it I it was it was unanimous vote on the EDA to pass it. So >> okay, thanks. Any other discussion, Darl? >> This if this is done in five years, this loan would be paid off then. Correct. It would correct it. be done >> and hopefully they come to us in the next 5 years with an expansion or some something fun. [laughter] >> Double their size again. >> Thank you. >> Uh Carrie, >> I was at the EDA meeting as a liaison. I abstained and I'm going to abstain tonight because I'm on the leadership team. I know I don't legally need to, but I think it's a good idea. Any other questions or discussion? All right. Hearing nothing further, the resolution approving a 5-year balloon payment extension for the St. Peter Food Co-op revolving loan appears on pages 35 through 36 of the packet. Is there a motion to approve? >> So moved. >> Second. >> We have a motion and a second. Call the role, please. >> Council member Pettis, >> I. >> Council member Ram, >> I. >> Council member Charstrom, >> I. >> Council member Das, >> I. >> Mayor Noel, >> I. >> Council member Johnson, >> abstain. >> The resolution carries. Thank you. >> Thanks, Ben. Uh, next up, MMUA safety contract renewal. Wow, we're getting to see all [laughter] >> everybody tonight. >> All right, >> get comfortable. [laughter] >> Both could be with you. >> Yeah. Good evening, Pete. Uh, madame madame mayor and city council, um, for the last 25 years, we've come before you to ask you to authorize, um, a safety contract with the Minnesota Municipal Utilities Association. Uh, they are the association that comes to our uh, community and helps us train our employees how to operate safely and how to perform their jobs in a safe and efficient manner. Um we require a level one of service based on our population of 12,000 plus. Uh we're also a tier 2 which requires two days of training per month. One day is given an open session. Uh the other is watching our crews operate and then critiquing how we do things. As I'd mentioned, we have been doing this for 25 plus years and we have seen outstanding safety numbers and a decrease in workplace injuries. And so with that, I'm asking you to approve the resolution on page 43. And I would be available to answer any questions that you may have. >> Any questions for Pete? This has come up every year, so we've had plenty of time to discuss this, but um anything that can reduce injuries and um is is a great thing for our staff and for our city. Hearing no further discussion, the resolution authorizing renewal of safety contract with MMUA is on page 43 of the packet. Is there a motion to approve? >> So moved. >> Second. >> We have a motion and a second. Call the roll, please. Council member Ram. >> Hi. >> Council member Sharstrom. >> Hi. >> Council member Devos. >> I. >> Mayor Noel. >> I. >> Council member Johnson. >> Hi. >> Council member Pettis. >> Hi. >> The resolution is approved. Next up, we have Pine Street closeout. >> On page 44, you have a memo uh that describes the um summary of the Pine Street project. As you guys know, um we are looking to have final payment in the amount of $20,54.65. 65 cents made to uh Dirt Merchant of Mano who completed the project. Uh we did have one change order from the original amount that was authorized. Uh the original amount was 1,191,19825. And we did have one change order where we found a service or two that was uh needed to be lowered because of the additional rock down there. Uh that did add some cost which was our responsibility and so we're asking for a change order approval in that amount. Um the final construction cost ended up being about 1.21596. Um and we're asking that you approve the project, accept the project as complete and authorize final payment. >> Thanks Pete. Any questions? All right. Hearing no further questions. The resolution accepting the 2022 Pine Street improvements from South Washington Avenue to South Minnesota Avenue is on page 45. Is there a motion to approve? >> So moved. >> Second. >> We have a motion and a second. Call the role, please. >> Council member Charstrom. >> I. >> Council member Devos. >> I. >> Mayor Noel. >> I. >> Council member Johnson. >> I. >> Council member Pettis. >> I. >> Council member Ramp. >> I. >> The resolution is approved. Next up, South Front Street substation closeout. Uh as part of our master plan on the electric side, we have gone through a couple different phases of improvements down there at the front street substation. Uh you may remember back in 2018, we did the first phase of that project where we replaced one of the transformers. I shouldn't say replace the transformer, but we did replace a switch gear to go along with a transformer that had been previously replaced. Um this phase which was phase two required the removal of outdoor reclosures, regulators and a steel box structure which again became outdated with the installation of our brand new transformer and delivery of that plus the additional um indoor metal clad switch gear that we provided plus feeders for both the B and C circuits uh switch gear needed to uh complete the project. Uh the contractor's original bid was $232,900 and the actual construction cost uh was $226,7386, a savings of just about $6,200. Uh this project was funded by a previously bonded expendit as a previously bonded expenditure. And what we're asking you to do tonight is accept the project, identify it as complete, and make final payment to our contractor who was Harold K. Schultz of Nebraska. All right. Questions for Pete? Hearing no questions or discussion, the resolution accepting Front Street substation improvements as complete and authorizing final payment appears on page 47 of the packet. Is there a motion to approve? >> So moved. >> Second. We have a motion and a to second. Call the role, please. >> Council member Dvas, >> I. >> Mayor Noel, >> I. >> Council member Johnson, >> I. >> Council member Pettis, >> I. >> Council member Ram, >> I. >> Council member Charstrom, >> I. >> The resolution is approved. Moving on to standard detail plates. >> Madame Mayor and City Council, before you you have a variety of standard detail plates. These are used in the construction of a lot of the city infrastructure. And over the course of the last year or two, we've had some minor changes uh in relation to how we construct uh some of this materials. Um you have before you standard plates 10003, which is a concrete walk typical section. As you may be aware, we uh removed the tool joints and went to a saw cut. So, we took feedback from some of the um people that use our sidewalks who are in wheelchairs and said that these joints do not provide for a very comfortable ride. And so, as you will see in that um standard detail along with some of the others along here, that [clears throat] is the main change that we have provided that now we're requesting that all concrete be poured and then uh saw cut instead of tool joints. And so that's the same with 7024R, 7030R, and 7032C. All of those relate to concrete aprons and walk. Uh the other two are new. Um one is a 16T aluminum pole street light uh which our electric superintendent is requesting. That is uh standard detail 20009. And they are all attached here in um pages 50 through 55. And then 730R, which is the rollover, uh that's the concrete apron with rollover style curbon gutter. That is a newer standard detail that we tried at our subdivision out at Cullum Street. And so we wanted to make that approval. Uh doesn't mean that we'll necessarily use that at every subdivision, but when we do use it, we will use that standard detail. Um, the details are all on pages 50 through 55 and a resolution is on pages 56 through 57. >> All right. Any questions for Pete or any discussion on any of these? >> Well, I'm glad that we're hearing feedback from residents and making something >> you guys want me to go through today. [laughter] Yeah, you know what? I actually really like what they've done and I live that in that neighborhood and have been watching the rain and everything else. >> It's working well. >> Good approach. >> All right. >> Can you provide your name and address? [laughter] >> No. >> Uh if there's no further discussion, the resolution adopting the modifications and additional city utility wait. Yes. City utility standard detail plates is on pages 56 through 57 of the packet. Is there a motion to approve? >> So moved. >> Second. >> All right, we have a motion and a second. Call the role, please. >> Mayor Noel, >> I. >> Council member Johnson, >> I. >> Council member Pettis, >> I. >> Council member Ram, >> I. >> Council member Sharstrom, >> I. >> Council member Devos, >> I. >> The resolution is approved. >> Thanks, Pete. Uh, next up, TIFF 1-26 timeline amendment. >> Members, usually Shannon is here to discuss these with you, but this is a relatively small modification to a previously entered into tax increment financing agreement. So, this is for our friends at St. Peter Investors LLC. These are the folks who developed for the two Traverse Green apartments and as you know, traded some land and purchased some land from you at Cullen Street. your original document, the original TIFF document, indicated very clearly that construction had to occur in the 2025 year. This only moves it to the 2026 year. Um, I've had communication with their title company and a number of different folks and so we're very confident that they're going to continue to move forward, but it does need to represent this appropriately so that the tiff district starts at the appropriate time. Um, so that's really the basis for the change here and the only basis for that change. Um, there's a resolution included in your packet. And of course, the modification has been drafted by Taft, your bond and development agreement council. Mary Epel and her team do that work for you. And so, the resolution is included in your packet. Pardon me, I got to flip the pages here quick to get there. It is on page 80 uh 85. Thank you, Madame. >> Uh, any questions or discussion hearing? Nothing. The resolution authorizing execution of an amended development agreement is on page 85. Is there a motion to approve? >> We have a motion and a second. Call the role, please. >> Council member Johnson, >> I. >> Council member Pettis, >> I. >> Council member Ram, >> I. >> Council member Charstrom, >> I. >> Council member Devos, >> I. >> Mayor Noel, >> I. The resolution is approved. Uh, moving on to reports. I have no report this evening. Are there any council members who'd like to make a report at this time? Brad. [clears throat] >> Um, so two things, both power related. Um, uh, about a week and a half ago, I had the opportunity to attend the, uh, the annual meeting for the Southern Minnesota Municip Power Agency. Um, otherwise known as Simpa. Uh, that's who St. Peter and 16 other communities get their power for for municipal electric companies. Um, o overall a positive meeting. uh we shouldn't be seeing upward pressure on on rates at least for the next year. Uh it was interesting compared to last year um when they were looking at uh various renewable projects and other carbon-f free projects um uh and the planning for that. This year it's a little bit this year there there's a lot of trying to figure out what they're going to do going forward because there are changes at the federal level to take away those credits. Um yet in Minnesota we still have our carbon-f free standards of 90% by 2035 and 100% by 2040. So in that way there's um there's a lot of uncertainty as far as how how to address the capital projects going forward. Do do they keep going at the same pace? Do they dial back a little bit to see if there's another change at the federal level to bring back some of these credits? Um so overall overall positive but you know a little more uncertainty compared to what there was last year as far as uh capital investments going forward. Um the other thing uh to report city of St. Peter, uh, and sorry if I'm going to steal any of Pete's thunder here. Um, for this, uh, we applied for a grant from the state of Minnesota for, uh, it's called solar for cities where it's a grant that would pay 70% of the cost of a solar array for m for either a city, a school district, a county. Um, and actually while we were at our Simp, uh, Pete got the email that notified him that we did actually receive a grant for it. So we the 40 kilowatt array that we're planning on building at the city hall, 70% of it will be paid for by the state. The other 30% because the federal tax credits are still valid this year will be paid by the federal tax credit. So in in essence we're getting essentially a 40 kilowatt array which is about seven houses uh uh for free. So so that's something to be really excited about as we move towards our clean energy future. So, >> thanks Carrie. >> I just wanted to report on the state of the economy event that occurred last Tuesday and that in other words is our Rita annual meeting and Rita stands for regional economic development alliance and it includes two counties and several cities in the greater Mano area including St. Peter is an alliance partner and um so the big part part of that meeting that's so important is just talking about the value of Rita um to our region and the value of that partnership and uh also looking ahead um to be able to say you know we're really going to be focused on uh business recruitment. Um the last several years it's really been focused on talent development, resident recruitment and some business development, but um the focus is going to shift back to business recruitment, business development. Uh so I'm excited for the year ahead with with Rita and it was uh a really good event well attended. Thank you to Mayor Noel and Council Member DVOS and Ben Baker who attended and several others. Uh it was a fun fun night. >> It was a really great night. Well night. Uh well done. So, um I wonder if there are any council members. Several of us were able to attend the bonding committee that came and visit us last week. Council members Pettis, Sharststrom, and Devas were there. So, if you anything you would like to report on that visit, >> um just real briefly, we stuck to our main two um asks right now. The first ask that we have of the bonding committee is to fund phase two of Gorman Park. As we are all aware, but maybe the viewers who made it this far into our meeting aren't aware, phase one is fully funded. However, we're still trying to get funds for phase two. Um, the second ask that we have is for redoing our wastewater treatment plant. Unfortunately, that has met come to the end of its life and it's going to be fairly expensive to replace and we would like bonding funds to help us with that. >> Yes, we would. For a for those of us who've been in town for a while, it feels like it's the new plant. So, what do we need to do? But, as our city administrator pointed out, it's kind of like your car once you've been driving it around for a while. It needs some new needs some maintenance, needs some new shocks and struts and things like that. And and uh so we had a great time talking with about with the House bonding committee about our need and and uh seeking some funds for that. So that's really the goal is to purchase new equipment where we have seen equipment reach the end of its useful life and to prepare for additional or new standards that are either in place or likely to come into place during our next couple of permitting process reviews. So >> yeah, it's great that you'll spend the time and do it. Um it's really a worthwhile endeavor. I know it takes a couple hours out of your day to make that happen, but we appreciate that and we think it's really valuable. It's great that we can get a visit and really promote those items. >> Well, and as a resident of St. Peter, I know I feel good and I think people watching at home should feel good about how planful your council is and staff are about making sure that we're looking ahead and not waiting for things to fail, not waiting for critical infrastructure to start falling apart before we say, "Hey, we need to do something." we really are thinking ahead. We want our residents to have uh great service from the city and um and and we're doing that right now. So, any other council reports? How about our city administrator? >> Madame Mayor, I have three things that I was hoping to visit with you about. Um the first is a clarification. At your last meeting, we had a discussion about a liquor license for Tremendous Brewery and I wanted to provide some information back to you on a clarification for that. As you know, that was for a limited time and you did approve it, but wanted some information back. This was really done because their current licensing relates to brewing and sale of beer only, not hard liquor. And for this event, they had spirits that were going to be sold and so this was necessary. and we did talk with um state of Minnesota alcohol and gambling department about this. So that was the purpose and wanted to follow up with you if people are watching. That's the follow-up to that one. Um the second one that I want to mention is um I'd ask Perry to come forward. Perry, as you can see, is sporting his Dodgers hat. I'm not sure that this is Dodgers territory. >> It's okay because I still have Dodgers cover. [laughter] >> So um Perry is here. Um, some of you have asked about the conclusion to the debt issuance related to the new city hall or the scholarship America building. So, I've asked Perry to say a few words about how that ended up. As you know, that was concluded. You passed a lot of resolutions for that, but I thought it'd be worthwhile for Perry to talk about that just for a few moments. >> Yeah. So, without going into our initial estimates and where we thought we would be and what we thought the interest rates would were going to be and how all that worked together, it's actually a very complex uh debt issuance because we had part of it is slightly taxable or not slightly, part of it is taxable because we want to have the options for that entire property in case someday we want to do something other than use it for city services. Um but uh all all of our ducks came in in a row and as we mentioned before we had a stable reading uh after our meeting with S&P uh we ended up issuing that debt which netted us a balance of 9.12 million. Uh the combined interest rate of the two different debt issues was 4.46%. Um our initial estimate was quite a bit higher than that. That results in about a $15,000 less debt service per year. Uh from what we saw in the initial budget, I don't at this point our initial budget for 2026, we're only doing a um we're capitalizing some interest. So we don't need to make an adjustment there. But I do see beyond that, we're going to be looking at instead of 650,000 a year, about 635,000 a year. Um that's a little bit different in the first couple of years because of that uh taxable issue that we will retire within five years. Um and I also wanted to update you uh the money spent you passed a reimbursement resolution at the beginning of this project. The money spent in 2025 to date is 2.25 million. Uh and we will be getting to draw on that right away from those debt proceeds to put those back into our coffers and make me sleep. so much better at night because I have that much more money in in my cash flow uh uh considerations [clears throat] as we go forward. Um and we are now getting into the details of all what those budgets mean. We just got our first draw request from RW Carlson. Uh so the project's well on its way from my standpoint. Uh we're ready for it and ready to spend that money and and do good work. And if you have any questions on the bond issue or anything else, I I'll try to answer them. >> Well, one of the numbers that we tossed around is that although it wasn't quite a million, we're saving a little bit less than a million overall based on that interest rate change. I think that's right, Perry. >> Yeah. 50,000 $15,000 over the course of 25 years. >> That's a truth and lending disclosure. and I I would probably reveal my politics if I told you what I feel about, [laughter] >> but wanted to follow up with you that you knew where we were at and that the interest rate was substantially lower than we originally anticipated, which is good and certainly a credit to the team and some of the things that the hospital has done that helped with our credit rating. So, that's good. >> Any questions for Perry as long as we've got him here? >> All right, you're off the hook, Perry. Thank you so much. Appreciate it. Thank you. >> Um, >> I have one last item if I may, Madame Mayor. >> Yeah. >> The last item that I do want to mention to all of you >> before I walked up here. [laughter] >> The last item that I have for you is just a reminder to the community and certainly to the council and staff that we have um the open house and a ribbon cutting for Tremendous Playground scheduled for November 7th. Um, so that's between 1 and 3:00. there's a little program that will be held and that'll be right at about 1:00 on that day on November 7th. So, want you to be aware. I can tell you with great confidence um and some of you who attended the House bonding committee visit um may have noticed young people um going back and forth between the child care um facilities here and the parochial school. And we received a number of questions about when it was going to be available. So, there are some young people chomping at the bit. Um so, they're ready to go. So I'm sure on November 7th and November 8th and thereafter it'll get used very heavily. So a lot of work has gone into that. Um a lot of your team needs to be congratulated for that. But again that is on November 7th um starting at 1:00. >> Super exciting. >> It is super fantastic. Yeah. >> Madame Mayor, that's the last report that I have for you. >> Then the last uh item we have would be a resolution calling for a close session. >> Mayor members, that resolution is on page 86. This relates to a property located at and and we'll fix that resolution, but the property is 1305 Old Minnesota Avenue. I know it says 107, but this is for 1305 Minnesota Avenue. And um I do not come expect to come back into open session um to vote on anything other than to adjourn. So we are likely only to come back to adjourn. >> So we will move downstairs and >> we'll just close the meeting. >> That's correct. >> Conclusion of the executive session. That's correct. >> All right. Is there a motion uh to approve the resolution that appears on page 86 of the bill? >> So moved. >> Second. >> We have a motion and a second. Call the role, please. >> Council member Pettis, >> I. >> Council member Ram, >> I. >> Council member Charstrom. >> I. >> Council member DVOS. >> I. >> Mayor Noel. >> I. >> Council member Johnson. >> I. The resolution is approved and we will uh close our open session at 7:34. And so we're in the same