7 o'clock. So, we'll call the meeting to order and start with the pledgece to the flag of the United States of America and to the stands nation and justice for all. >> [clears throat] >> There are any changes to the agenda? >> Take a motion to approve. >> So moved. >> Motion by Josh. >> Second. >> Second by Amanda. All those in favor? >> I. >> Presentation proclamations and acknowledgements. We have the presentation for the audit of financial year ended December 31st, 2025. >> Real quick, Andy, >> I did not get that email. >> Oh, I can send it to you. >> Okay. [clears throat] Luke, do do you happen to have a a joke? [laughter] All right. Uh, an engineer, a doctor, and a priest go golfing. And uh after a few holes and no so the group ahead of them is really slow and uh the ranger comes by and they go hey what's what's the deal? Why are they so slow? And um ranger explains it's actually a group of blind firefighters. Um they lost their sight while saving a bunch of people from a fire at the clubhouse. So three guys are are silent for a little while and the priest says I'll I'll pray for them. And the doctor says uh I'll look into some treatments and see if I can't help them with their sight. And the engineer is quiet for a little while and then says, "Have they considered golfing at night? [laughter] [laughter] It's a good way to lighten the audit." [laughter] >> All right, I'm ready to go. >> Perfect. Well, thank you for having me here tonight. I'm here to present the audit results for the year ended December 31st, 2025. Um, I do have a slide here if you go forward just a couple here. Um, just highlighting our role in the financial statements each year and that's to perform an audit on the city's financial statements and ensure that those financial statements are um, properly prepared in accordance with generally accepted accounting principles. uh for the audit that we performed for this year um we are able to issue a clean unmodified audit opinion which is the best that we can give as your auditor. So uh wanted to highlight that we also issued our report on government auditing standards as well as Minnesota legal compliance. Uh that government auditing standards report um talks about our consideration of internal control over financial reporting and we are required to report any material weaknesses or significant deficiencies that come to our attention as part of that understanding. Uh and we did note two um material weaknesses this year. One for a lack of segregation of accounting duties and the other for material audit adjustments. Those findings um have been present in the past and are are somewhat common um in when you have a finance team of of that size. It essentially means that there's not enough individuals for in in terms of checks and balances to ensure that um you know errors are identified timely. Um and and so we continue to have that that finding when we you know have adjustments each year that are material in nature. Um the Minnesota legal compliance report talks about how we consider uh the state auditor's offices um legal compliance guides when performing our audit procedures. Uh similar to internal control um we don't offer an opinion or assurance but rather we need to report any um compliance related matters that come to our attention as part of that um procedure and there were no findings in that uh Minnesota legal compliance report for this year. Uh the next report that we have um going one more one more slide two more slides um is the charts and graphs from the communications letter. communication letter includes all required communication in accordance with audit standards but also includes financial analysis as a courtesy uh just to provide some trend data uh related to the general fund and the city's enterprise funds. Uh the first chart here oh going going back to yep that one right there. Um the first chart >> machine [laughter] >> uh the first chart highlights the general fund um revenues here um for 24 and 25 and the proportion uh of each of those um sources um between those two years. Uh overall there was a 4% increase in general fund revenues between 24 and 25. Uh about $151,000 increase overall and a majority of that occurred in taxes uh with an increase in levy. that area um increased $271,000 and that was an off and that was offset by licenses and permits which declined about $86,000. But uh those are the two um major changes between the two years. Uh the next chart highlights the general fund um budget to actual results for 2025 uh specifically for revenues and revenues overall were about 12% uh more than budgeted or $44,000. Uh and the most significant of variance occurred in um licenses and permits that areas typically budgeted for conservatively as that can be volatile from year to year based on market conditions and that ultimately uh came in better than anticipated as well as miscellaneous revenues that includes uh investment income also budgeted conservatively there and ultimately uh did come in better than anticipated here for 2025 but uh other revenue streams were consistent with consistent with budgeted amounts. Uh the next chart highlights the general fund expenditures and the makeup um by function between 2024 and 25. Uh there was a little bit of a shift between categories there. Uh namely um capital outlay that increased from 1% of overall general fund expenditures to 5% uh and that related to a land purchase uh here in 2025. um public safety expenditures um increased about $70,000 with additional building inspections and then public works increased $73,000 to more uh employees in that function. And then um also um did see a decrease in governmental expenditures and that was um due to um vacant positions but those are the main uh changes between the two years. Uh next chart highlights the general fund expenditure budget to actual results and overall did see about 8% uh more expenditures than what was budgeted. Um the most significant variance occurred in public safety and and similar to the revenue side with more um building activity than anticipated. There were more building inspection uh related expenditures than anticipated as well. Capital outlay was over budget $132,000 with that land purchase that was not included in the adopted budget. And then general government um was under budget by about $100,000 again due to um underst staffing or vacant positions there. But those are the the main variances. The next chart highlights the general fund fund balance. Um this is just uh a good repres representation of financial health and what reserves are available for cash uh cash flow purposes in the future. The state auditor's office recommends a fund balance between 35 and 50% of um annual expenditures. And um for the year ended December 31st, 2025, the general fund balance of about 1.7 million um represented about 49% of actual expenditure expenditures at 2025 levels there. So uh within that that range. Uh the next chart um starts a review of the city's um three enterprise funds. These present a bit differently in that these are full acrruel and so they include things like depreciation and gives you a full picture as to the true operating cost of providing those services and uh whether the fees that are being charged are sufficient to cover those costs. Uh the water fund did see a operating income this year of 55 uh $556,000. Um there was an increase in operating expenses of about 8% with engineering fees and some consulting fees and and an increase in utility costs but still generated positive operating income. We also provide that metric uh without depreciation just to give a better idea in terms of cash flow in that fund and that was uh positive just over $1 million. The next chart highlights the sewer fund uh for 20 uh for the past five years and in 2025. Uh there was an increase in operating revenues and expenses and that was related to sack fees. So did see an increase in both of those areas and an increase in operating income. Uh there's also a decrease in in um wages due to fewer employees in this area. So that's netted in there as well. And then without depreciation positive uh results of about $710,000. Uh the last fund here is the storm sewer fund. Uh this fund did experience an operating loss this year of about $53,000. Uh there were some additional costs related to environmental well sampling uh and then some boring at Eagle View um station. So did see that occur um which you know those related costs weren't present in previous years and without depreciation still generated a positive um operating income of about $53,000. Um that's the main highlights from the audit as well as the financial results. I appreciate Tom uh Kelly and the city for all their help during the audit process this year. And next I just like to open up for any questions. >> Any questions? >> What was the general fund balance? I I know 25 to 49%. What was that range that you >> 35 to 50%. >> No other questions. Thank you. >> Thanks for having me. We'll move on to public comment. Is anyone here for public comment? Go ahead. >> Hi, I'm uh Todd Bergstrom and I'm here to discuss um I don't know if there's anything you'll do about it or anything, but like the cart paths or the walking paths in town. Um, I think we should maybe take away some of the no motorized vehicle signs on some of the paths. It's just I like down here at the ballpark here, like basically the path to get on is taking a cart path or the walking path to get there. Otherwise, you're out on County Road 2. Uh if you go up to Park Street where the park is on the south side of the road there, if you have an older couple and they want to go watch their grandkids, you know, if somebody's taking them down there with a golf cart, you know, it says no motorized vehicles. I mean, I think that's kind of crazy. Uh, another one that I think is not very safe is if you go up to [snorts] Pete's Hill and you come around, if you're on your golf cart or a bicycle, so you're not on the cart path or the walking path. I mean, you could easily get hit by a car. I mean, I don't see what the big deal is. I mean, you guys got to take care of it. But like, if you're on the walking path with a golf cart, I mean, I go down the one by I don't know, comes off Siger Street all the time. And and I've talked to a lot of people that if there's somebody else on the path, you don't go blaze by them. You pull over and let them go by. Um, and the the only reason I bring this up is I've been stopped a couple of times and rightfully so because I was on the path, but you know, you could sit out there and give people tickets all day long if you wanted to. I mean, I just think we should need to remove some of the no motorized vehicles on it. I mean, is is that something you guys would be willing to discuss or >> Chief, can you just remind me like on those county roads, is there a difference in what is allowed or not allowed. County roads are you can have motorized on those specific city limits talking about the one that runs down to the field by the church there >> and then >> how about along two there by the in front of the CDA and down to the ball field and stuff like that since it's on So that's a different it's defined differently than the one on 91 is then that trail is >> those are trails. >> And who defines those? Do we define those? Are they defined in ordinance or is it is there dimensions? I mean maybe this >> how does what's the difference between a sidewalk and a trail versus what's on the north side of two? You know like [laughter] >> we we defined it. We provided an exception for the paths along the county roads because you're dealing with 55 mph speeds and the expectation is when you're in town or not along the county roads that you're on the street. >> Are the non-motorized signs like original to those paths being put in place or did they come after? >> They've been I've been here 16 years and they've been there since I've been here. Yeah, they've been there since at least right before shortly after I started here and it was a result of complaints of people that were walking and conflicts between motorized vehicles and um pedestrians. There's actually one older gentleman and he drives his three-wheeler and it's a motorized little scooter and I mean I'd hate like heck to see him get it. I mean, I don't think you'd give them a ticket, but technically that's a motorized vehicle, you know, [laughter] but I I'm just thinking that if we could a few of them, like going up Pete's Hill, I think you can't get going fast or anything because of all the curves and to go up that would be a lot safer than going all the way around to the road that goes to the top of Pete's Hill. Do you know what I mean? It's because there's no really no place to drive for a golf cart or anything on it. >> I understand Todd's concerns. My concern is if we remove that, we're going to have motorcycles because we already have those paths. We've actually had cars. We've had to arrest cars. >> Oh boy. >> And police cars. I saw you guys today. >> We've had cars that are driving there because Google sent them there. And so they started driving through the park because Google sent them into the park. >> So my where I understand where's coming from and I know exactly I understand why there's a lot of people that take that games to but my concern is as soon as you remove the motorized you're going to get a lot of other things. >> Is there a way to define it in a more granular fashion? >> What I'm hearing Oh, sorry. >> No, go ahead. I was just say it sounds like it's a worthwhile discussion potentially. >> Yes. And so we could schedule it for a report discussion at a future date where one we can say here's what the rules are today. >> I'd love to visualize too like this thing is it looks the exact same but it's defined as this >> this one. You know it would be helpful to kind of >> and I can say the ones along 91 and we see people jogging have respond to anything. So, they they've managed to make those work, >> right? But >> there have been more complaints about golf carts on the paths. >> Pill definitely that is one that has generated quite a few calls. the one that he's talking about running down the ball as much as the one came through to Oxford. >> That one's deceptive, too. You're looking at a golf course and as you're driving on the golf cart. >> Sure. >> Yeah. I mean, so it's even more like all right, but I've seen some of the the ebikes flying on there looks >> sign. then we'll schedule it for a future as a future discussion item. >> All right, that's all I ask. I appreciate that. Thank you. >> Thank you. >> Anyone else for public comment? All right, moving to the consent agenda. Is there anything anyone would like to pull from the consent agenda? Otherwise, I'll take a motion to approve the consent agenda. Motion to approve consent agenda. >> Motion by Kate. >> Second. Second by Amanda. All those in favor? I opposed. >> If if I can and I I was trying to sneak it in earlier with the audit. Um, I think there has to be some recognition for um, our finance specialist who at the same time was trying to complete the audit, was also trying to work on the budget and was also doing it was also doing two jobs um, at the same time and put in a lot of time, effort, and extra hours to make sure that we were still hitting deadlines, getting everything done by when we needed to. Thank you. [laughter] >> All right. Public hearing uh for the 2026 2030 capital improvement plan and capital financing plan. Do we have a presentation first? >> Um we have a verbal presentation from >> Good evening. Rebecca Curts from Ellers. Um, I'm going to take a couple minutes and walk through the capital improvement plan. Um, not in a lot of detail, but when we're done, we're always happy to answer any questions with this. Just as a little reminder to kind of set the the tone, um, the main purpose for a capital improvement plan is really to help with that long-term um, responsible planning for for your community. and a CIP or this one specifically is looking at the next 5 years and um capital improvements that need to happen and then along with that plan how you would finance those capital improvements. Um so it's really a planning document that is the best um anticipation at this point in time, but we recognize that with a five-year plan things do adjust and evolve. And so, um, it is not meant to be something that looks that is looked at this evening and then set on a shelf and in six years then starting over again. Um, but when we look at the capital improvement plan that's been put together, I also want to just take a minute and talk a little bit about statutory authorities because that is one of the one of the reasons also why you have a capital improvement plan. Um, when you choose to issue debt for a project or need to issue debt for a project, you need to have an authority or statutory authority in Minnesota state law. And um, some of the common ones that are included in that is for like a street project. Um, if you assessed um, for street improvements, they are improvement bonds or sometimes called 429 bonds, which references that statutory authority. if you're going to assess that minimum of 20% to help pay for for the projects. Um, another common one is issuing um equipment certificates. Um, there's a special authority for that. Um, if you do um debt um, excuse me, debt that is financed from utility revenue, that would be a separate authority where you pledge your utility revenue for for the debt service. Um there also are street reconstruction bonds or what are called capital improvement bonds where there is a process that you go through to issue that debt and then when that process is completed you can levy taxes for for that debt service. Um so with that what we are going to be talking about then um later on today is specifically that capital improvement plan authority and I will go into a little more detail on that specific one um when we get to calling for our bond sale at the next item. Um in the CIP again it's a five-year plan and you can see on the screen that there are um six projects that have been identified. The first one that we'll spend a little more time on as this evening progresses is improvements to or well number five. Um improvements to the water treatment plant and um blending projects. We will be looking at issuing debt this year for that project in the amount of um $1.6 million. As I talk about statutory authority, that one is under what um the legislature looks at as 444. That means for that project, you would be pledging utility revenues to pay the debt service. So, it would not come from tax revenues. Um the second one we'll talk about this evening is the city campus land acquisition and that is in a project amount of 370,000 um statutory authority of 475 and that falls under the capital improvement plan authorization and there is a very specific um process that needs to be followed for that. Um the water tower is anticipated along with p some pavement rehabilitation to issue debt likely in 2027. Um the water tower is anticipated to have a project cost of 10.47 million with the pavement project having a project cost of just over 1.3 million. Um with those again water tower being a utility would be anticipated to pay from um utility revenues and then the pavement rehabilitation we are anticipating on that project that there would be assessments included and so that would likely be issued under statute 429 or improvement bonds. Um the third one in 2027 is for the purchase of various pieces of equipment. We are anticipating anticipating an amount of about $800,000. Um there is a special authority that allows you to bond for equipment and with that it then allows you to use tax revenue to pay that debt service pay that debt service. Um the final project in the CIP for this five-year plan is then the pavement rehab. Um again anticipated to be in 2030 with a project amount just over 1.6 million and again like in the 2027 project um it is anticipated that that pavement rehab project would have assessments so that you would use um assessment revenue and then taxes to make the payments on that. So with the um ability or the need to issue what we call capital improvement plan bonds for the land acquisition specifically this evening um there is uh the um capital improvement plan that has been put together and you will see as you go through that document in more detail that with each of these projects there is a summary of the project cost um some estimated cost of issuances which is including um fees for ellers, fees for bond attorneys, fees for the underwriter or the what we call discount and then the anticipated par amount for the project. Um we've also outlined the anticipated term um and anticipated interest rate. We have tried to be conservative on that um but the farther out we get the more difficult it is to project where that will be. and then also set some anticipated um debt service expectations along with each of the projects. You also will see there are some findings that are made um and with that that is part of the uh requirement that is needed for issuing capital improvement plan bonds for example the city land acquisition project. Um, under statute, there are findings that you need to make um to be able to move forward with that process, including um some different tax impacts, some um some explanations of what the benefits and the need are for the project and just some discussion on if this is something that you can use other partnerships and that has been outlined in the plan. Um, with the capital improvement plan, there is a public hearing that is required. So, um, at at some point this evening, you will open the public hearing, take public comment on the plan, and then after that public hearing, there is a resolution that has been prepared by your bond council to um, if you would like to consider approving that capital improvement plan as it's presented this evening. [snorts] Um if you choose to do so, then the next step in issuing the bonds um specifically for the land acquisition piece in the amount of or the project amount of 370,000 is there would be a 30-day reverse referendum. And so we are then this evening put into a waiting period where um if a petition is received from residents that contains 5% signatures of 5% of the eligible voters from the last general election. Then there is a different process that we will need to go um through to um continue to move forward with that piece of the bond project. However, um assuming that there may not be that that reverse referendum and petition, then on August 23rd or any date after, you could move forward with the issuance of of the bonds. And again, this is specifically this requirement is specifically tied to that land acquisition piece of the capital improvement plan for for this evening. Um I will pause. I can go into more detail if you want on the different projects, but that is a high level that looks specifically for at least your 26 projects this evening and happy to answer any questions. >> Any questions from council? All right, with that, I'll open the public hearing at 7:28 p.m. If anyone is here to speak on that. All right, we'll close it at 7:28 p.m. and I'll take a motion to adopt resolution 2654. >> 53. >> Oh, 53. Sorry, I was looking at the >> So moved. Motion by Amanda, second by Josh. All those in favor? >> I >> oppose. Motion passes. We'll move on to general business. Um in continuation of the previous item, issuance and sale of 2.145 million of general obligation bond series 2026A. >> Thank you. So with that approval, we can take our next step. And um I believe in your council packets there also is a pre-sale report that I'll be referencing. Um the action that is before you is to call for the sale of 2,145,000 of general obligation bonds series 2026A. Um as we just discussed the proposed issue for 26 includes a CIP piece which is for the land acquisition for the municipal facility campus. um that project amount is $370,000 and debt service would be paid for advant or paid for from advalorum property taxes. Um the second piece of the bond issue is uh water piece um for well number five, the water treatment plant modifications and some blending equipment that is in a project amount of $1.6 $6 million and again debt service on that portion of the bond would be paid from water utility revenues. The bonds are being proposed to be issued for a term of 15 years. Um principle would be due in the years 2028 through 2042. However, there would be a call provision or what that means is a provision where you could prepay or refinance if interest rates were at a point where there were interest savings. Um they would be callable in February of 2036. Um with the issue um in the past you have had your general obligation bonds rated by standard and pores. We are recommending doing that process again. Uh currently the city has a double A+ rating and for this issue we would go through the rating process um request a new rating. It I would not anticipate any significant concern or changes um going through that. Um, with that, I will just make a comment that we do continually monitor your um, debt for opportunities for savings. um whether it be prepayment or refunding them for a lower interest cost. Um we continually monitor that and um unfortunately and this is probably not a surprise in the interest rate environment that we are in today um that is I do not have any opportunities like that to bring forward but it is something that we continue to do um as as a provider for you. Um, if you do choose to move forward with calling for this bond sale, there is a resolution in your packet that was drafted by your bond attorney. And the next step in this then would be assuming you approve that resolution, elders would go back um work with staff and prepare the documents including the official statement. um staff would have a call with a the rating agency in mid August to um confirm the the rating that you have for the bonds and then at that point the official statement is also distributed not only to you as council members and the community or it's available for publicly but then also um distributed for underwriters to start to review. Um, as mentioned, that 30-day reverse referendum period ends on August 23rd. And so then on August 27th, we would take bids in our office that morning. We would be back here at that at the council meeting that evening to present that and um make a recommendation to award. Bonds are typically awarded on the lowest true interest cost which is the interest rate but factors in those cost of issuance um for the underwriter and for other um involved parties. And then assuming that it is awarded on August 27th, the funds would be um available to the city on September 17th. Um again, I'm happy to answer any questions that you have. Um, and then if you do choose to do so, there's a resolution. >> Any questions? >> No, it's just a lot of interest. >> But it's only 15 term. >> I, you know, I I don't want to um I am hoping we are being conservative on the interest. Um, we we have estimated 3.99 9%. um with our rates that are in the packet this evening, we did add um 50 basis points or half a percent to allow for the unknown in the next um month month or so on where the market might go. Um but I will say nothing would make us as I'm sure all of you happier than if we come back on August 27th um with something lower than that. Take a motion to adopt resolution 2654. >> So moved. >> Second. >> Motion by Amanda, second by Kate. All those in favor? >> Opposed? >> Oh, sorry. Second by Josh. >> Move on to the next item. Old police department concept design report ISG. So we have a presentation tonight um by Josh from ISG. He was the consultant that worked with the work group um and then the design the work group again on the design work um prepared the conceptual design report um and I will also turn over to Brandon who is our staff lead for the project. >> Yeah. So you guys have been in the loop the whole time we've been doing this project. So as you know we've put a lot of time and effort into this in 2024. you guys um directed us to create a old PD study workg group and we did so went through every various option under the sun and came to the conclusion that we wanted a flexible community space. Um so we brought that back to you guys a few months back and you agreed to go forward with that. So we hired Josh and ISG to do some of the architectural work. Um I just want to say before Josh gets into his presentation that ISG has been a fantastic partner in this effort and they've been great to work with. So um I'm excited to see your presentation. Okay, don't oversell us too much. Um, and from it what it sounds like you guys asked for this, so hopefully there aren't too many uh pointed questions at the end of this, but um and maybe a project to add to the capital improvement list. Um but anyways, yeah, I have uh I think you guys have in your packet the full report that uh ISG produced, but tonight is kind of just a highle overview of uh basically the process. We went through the decision uh process, all of the options we reviewed, cost estimate at a high level, um and then recommendations. So, with that, uh, just if no one here has ever heard of ISG before, we are a Minnesota homegrown company. Started in Mano, now we're 800 uh, employee owners. We're uh, in several states now. Um, I am out of the Twin Cities. Um, I'm an architect among other things. Um, but I've also spent a number of years working directly as an employee of cities and nonprofits and uh, transit authorities. So I've seen kind of project planning process from not just the consultant side, but also kind of from the hard decision side of the table of uh, how to use your resources wisely. So, um, so yeah, so as Brandon said, we were kind of called in after the work group had decided that they wanted to explore an adaptive reuse approach to this building. Um, we structured our process in uh, you know, five steps basically. uh site visit to review existing conditions and then a series of workshops to develop conceptual options, refine those options and ultimately arrive at a preferred option. Um yeah, I think you guys can see this. My cursor and stuff isn't in the way. Um so the existing conditions review you as a city have already spent money a number of times doing in-depth review of this building. So we kept our effort on that on the very high level. We reviewed it purely really just on like what has decayed further from the last study and then taking a lens of what would be impacted should this project move forward. So on the left side of the screen is some representative photos of kind of the existing conditions and then on the right side is a very very kind of dumbed down summary table of basically what is possible to maintain should you embark on a project and what would require a major overhaul. So the big takeaway here is all of the check marks are on the right hand column. There's a lot that has to get done. Um any questions on this before I move on? Everyone kind of understands the state of the state of that building. Okay. Um workshop one was a visioning exercise to establish a shared vision among the parties that showed up to to the workshop. Um, and I would say the the primary takeaway, I mean, we did what I think was a fun exercise of uh writing down our guiding values, important uses and functions, and our kind of deepest fears for uh what we're afraid of should this project move forward. Um, and my big takeaway here was this community and history. Uh, the importance of that in this building. And then that's also echoed again in the concerns of just if the project doesn't happen, there would be a loss of community history. Um it was also noted that there was pretty much the exact same kind of vision established in the other work groups as there was in this exercise. So took that as a good sign that everyone is aligned in um what they want out of this project. So with that uh vision established we basically started on developing conceptual options and we did that over the subsequent workshop. So first we came with options one two and three. The way ISG kind of presents conceptual options at this stage is we do a um we call them the three Fs uh familiar a fresh and a fearless option kind of what's the lowest lift option versus what would be like maybe a unique idea or kind of scary to actually think about. Um so that's kind of option one is the familiar, two is the fresh, and then three is the fearless. um in the scope of this building and the size of it, it's really, you know, we'll talk through it. It's it's not that big of a skew of options, but um so yeah, option one was basically trying to be the lowest lift possible, lowest cost possible, and that was keeping the exact footprint of the building and really minimizing any changes to the location of interior walls. Um, so this one resulted in the smallest multi-purpose room uh and the most amount of kind of ancillary space. So in terms of where you're investing your money, it's not on the primary function that this building wants to serve. Um, did not get great feedback from the work group on this one and essentially they told us to to shove this and not move it forward. Uh option two was keeping the same building footprint but rearranging the inside uh and prioritizing the multi-purpose room. Um so that that is kind of the uh you know the fresh version taking what you got freshening it up. Um third version is the fearless version and that is demolishing that uh odd little addition on the west side of the building. That addition presents some code complexities with its uh uh adjacency or location to the the ball fields concession building. Um, so this was an option of, hey, maybe it's cheaper if we just demolish that building and try to condense the program all into the original um, you know, brick one room schoolhouse footprint. Um, so both option uh, two and three, the group felt like they had some legs and they wanted to see them uh, develop to the next round of detail. So these became option 2A and option 3A. And the next round of detail was essentially uh test fitting the program blocks uh by adding walls, doors, um chairs, tables to see what could actually fit into the building. So option 2 A, this is kind of how this laid out um during workshop three. Um, and then option 3A laid out kind of, you know, this way. Pretty good. But ultimately, uh, the decision here was, um, it just wasn't really it wasn't worth giving up the existing square footage of that uh, west side that would be demoed. So uh at this stage we also got some highle cost information from our cost estimating partner that doing this demo didn't actually save that much money. It was a net of like $20,000 between option 2 A and option 3A. So the group felt at this point that it wasn't worth the the you know smalls size savings to essentially lose functional square footage that already exists in the building. So um essentially option 2 A was selected by the group as the preferred option and ISG developed some uh conceptual visualizations just to aid in the you knowformational marketing and sharing of this project. Um, so we developed an exterior perspective just showing what it might look like cleaned up, uh, with some parking rearranged, new light fixtures and things like that. Um, and then a stylized floor plan of the final version of option 2A. Um, a little bit tweaked from what you saw as the floor plan. Uh this kind of gives a feeling of what the interior finish would be and what the interior layout would be. Um as I kind of explained at the workshops, the cost estimates were, you know, they're they're not for a high-end finished building. They're for uh uh office, you know, grade B plus. Um definitely not in the A category. Um, it's something respect respectful and and nice to the building. Um, but not not over the top by any means. Um, and something that will really last with with the amount of wear that would be put on this building. Um and then we also you know worked on the site plan a little bit but essentially this is the site plan that was developed during the uh police department study evaluating this site uh in 2019. We just um you know brought it forward into this study. Um, so this would be adding 37 parking spots to what is currently there and yeah that was that and then the budget comparison. So, uh, we had originally just agreed to basically do the the renovation cost, but, you know, uh, staff asked us to to compare it to what a new construction would be just to make sure we were actually, um, making, you know, a wise recommendation of how to use public funds. So, um, that being a really good idea, I had the cost estimator pull together the new build numbers. Um, and overall, you know, it is significantly cheaper, uh, to renovate the existing building. And a few caveats on this co, you know, the the summary of the budget is um the site costs are included in this. And then this is escalated to uh construction start of spring 2027. And then the new build numbers there, that would be tearing down what you got on the existing site and rebuilding on that existing site. So this is not like acquiring a new property somewhere and and doing it. Um so any questions on the highle budget summary at this point? Nothing. Okay. Um, next slide in here is just uh should you push out the timeline to actually uh you know do this project um costs go up. This is a this is really just a slide visualizing escalation and the idea that if you wait uh the same amount of scope today will cost more in 3 years. So this isn't meant to scare you or anything. I'm just or make you do this project today by any means. This is just to clearly lay out if you wait. What happens a lot, what I see happen a lot is you start having to cut your scope down, right? Because you established a budget of 2.1 million or whatever, right? And then you want to do it in 2029 and you get to 2029 and you all of a sudden can't afford the same amount of scope. So just want to lay that out there for the group. Um so ultimately ISG's recommendation is to move forward with option 2A. It closely aligned with um how the previous work groups were thinking about the project, how our uh workshops went and ultimately it was uh prioritized a flexible multi-purpose gathering space. um preserved the community asset and also was ultimately cheaper than trying to accomplish this through new construction. And then the next steps we put on here are really, you know, oversimplified for what actually has to happen next, but everyone likes a one, two, three. So, um, you know, one, I do kind of want to hear from council this evening if there's any feedback or changes in priorities that need to be or should be incorporated into the design. Um, and then two, there were a couple of enabling projects, I would say, or tasks that have to happen for this project to actually take place. One was relocating all of the public works items that are currently stored in this building, finding a new home for those, and then uh resolving the lot location and access agreement with the ball field and parking requirements. Um and then number three would just be identifying funding sources and schedule. So with that um I am open for questions. >> I mean maybe the question I don't know if it's for you or for us is so next steps I mean is no or no go. I mean I think it's we're a go at some point potentially. Then it the the next question is CIP inclusion or not. From what we just did, it probably rules out 2027. I would assume for the most part, unless we were to change something and but that changes things that we just did. Um, [clears throat] so when do when would we include it if we chose to include it in 2028 or beyond? I mean, is that just the logical next step? And then we start to do exactly what you were getting to of more of the design and funding and stuff like that. >> Yes. No. So, um, yeah, the you're right. The first question is, do you want to remodel the building for flexible community space given the information you have today? If the answer is yes, then the next question is when? There's a couple different ways you can go about doing it. Say, nope, this is something we want to do based on cost escalation. This is just a high priority for the community staff. get Josh to put together a proposal for the next phase of design work and we're going to move we're going to move ahead with, you know, a more more detailed design, more detailed budget. Um, if it's yes, but we need to talk about it more, then the logical next step would include it as an item for discussion within our next CIP cycle, which we just ended tonight, and guess what? We're going to be starting here in just a couple months. Um and then the council at that time can weigh it out against other capital needs of the city and basically decide need, cost, ability to pay questions. The third option is we want to do it, but we don't see it happening between now and 31. So maybe we leave it out there and we just kind of bring it out periodically and see if now's the the time. Once you make a decision on the when part that really dictates next next steps. >> So I guess the first question is is this something we want to do? >> Yes. >> Yes. >> Yes. >> I'd say so. >> Well that was that was straightforward. >> Yes. >> And now when >> and now the when when the when question because that really dictates how soon and when we have other next steps. So, >> I like the idea of bringing it back to a meeting and discussing again when Mayor Andrew is here. >> Would you want to discuss it as a freestanding item or as part of the CIP process discussion later this year? >> I I I think that it needs to be a freestanding item so we can hear what what his thoughts are as well. >> Then from there, we can decide what time frame we're looking at. >> Um, >> then if we wanted to add it to CIP or not. I don't see it being done in 2027. I'm very hesitant for 2028, but like I said, those are just my opinions and thoughts. >> The mayor had indicated that I could express his thoughts on the issue if you guys were curious at the meeting, and they're they're rather high level. Um uh but he had indicated that it was his general thought that we should look at doing it sooner than later because of the cost escalation and he felt we should discuss it as part of the upcoming CIP process and then work where there could be a more detailed discussion of weighing it out against other priorities etc. He basically took verbatim what I said uh before 2031 for sure and included CIP planning process is kind of where my head was at. >> Well, we can read that. >> Yeah, you can. Perfect. >> I'm okay with that. >> I'm good with that plan. Um I do have a question though. At what point do we do some sort of like community engagement like make sure that we're not completely off base >> and people are going to be like what the hell are you doing? >> That's a good question. Um so now we have a number and we have a proposal. So if the council feels that it wants to get community feedback on it, um I think first you got to decide what timeline you're talking about. Um, just my opinion, getting, if you're looking to do it in 2031, getting community feedback today may not be as meaningful as getting community feedback in 2029 or 2030 where you're actually closing in when you're actually going to do the project. The CIP, it's a plan. It's an expression of intent, but you're not actually pulling the trigger yet. Um, the other point, >> can I jump in? Yeah, we so ISG does community engagement and we do uh pre-referendum services as well, support services. So, um, we would usually engage, um, to do community surveys or open houses and kind of gauge the public's, um, tolerance for, uh, incre tax increase to pay for a project like this or get their feedback on programming or overall cost. Um, like 12 months before you think you're going to break ground. And you do that uh to gather feedback, hone in your messaging um and rightsize the project. And then probably six to four months before like the referendum would go, assuming that's how it's funded. Um we typically would like do a a pretty robustformational campaign with posters, a website. we can, you know, do like um uh Facebook posts, kind of anything like that to just raise awareness about the project. But that's kind of the time like that 12 months is is the timeline that we see. >> Is that something that's included like in a proposal like this or that would be additional? That would be outside like this was just conceptual design to get to the idea of what the project is and then pre-referendum support services would be yeah additional >> yeah next phase from an architectural standpoint which would not if you're looking post 2028 would be down the roadways but we would bring presumably bring Josh back and then they would do a more de they would actually do a more detailed design which would get and would also result in a more detailed and current budget at that time uh for the project. Um but Brandon thinks differently, but we wouldn't be if you're looking two to three or more years down the road, we wouldn't be doing that tomorrow um so to speak. And I would also just add that, you know, I think absolutely important to get more community feedback, but if you'll recall the the purpose of creating the work group was to do that kind of so we, you know, picked one person from each elected and appointed official and then ad hoc people from the community and local business owners. So um I think to just to get to this point here today, I think we have already done that minimally. >> I agree. No, I mean in my brain and maybe this is part of that CIP discussion though is where it fits within the CIP or within the plan. I mean 2028 and 2030 are going to be bonding years. So there's an opportunity for revenue there at the state level um to potentially contribute towards it. So having if we can land on one of those even years or kind of coincide with some of that then we can do some of that public engagement and use that as part of the messaging to legislators and stuff for additional funding and things too. sounds good. So, we'll include it as part of the CIP discussion. >> Yep. >> I mean, as far as priorities or other details things, and this is far too early in the process, but my brain goes to and I know that the pictures were completely estimates and all that stuff. Just ADA accessible bathrooms and complete accessibility throughout the tables. I mean, making sure that, you know, folks can get around the tables and stuff and and that those types of accessibility things. >> Yeah. >> And I know you already >> I was like, all of that was part of the conversation. >> Well, the ramps in the front, >> we talked about door types. >> Yeah. We talked a lot. >> Yeah. A lot of lot of deep dives. Yeah. Yeah. Yeah. >> Yeah. [laughter] >> Thank you. >> Anything else? No. Okay. >> Thank you guys. >> We'll move into reports and start with administration. >> Um I have nothing specific to report unless you have any questions for me or any other administrative staff. >> Public works. >> Corey did not have anything he wanted me to relate in addition to his written report. police. >> Uh the only thing that I have is that uh we're hiring again. So we have another process going and accepting applications and it closes August 3rd if I remember correctly >> fire. >> Yes. So, as the council's aware, we have a we establish approximately every three years a memorandum of understanding with the Elenoo Market Fire Relief Association. And the purpose of that memorandum is to establish an understanding. It's a non-binding agreement related to what the city's contributions will be to the relief fund on an annual basis over that three-year period. and in return what are the terms or understanding in which the city would support increases or changes to the benefit level. Um, we have what's called a lump sum benefit plan where firefighters after they have been on the department for 10 full service years um, start to become vested and then at 20 years are fully vested and they receive the benefit amount currently $15,000 per year of service multiplied by the years of service that they that they have. And we define under what terms we would support adjusting it. And you might ask, well, it's the fire relief. Why do we have to approve it? Um because the city taxpayer is the underwriter for that fund. If for whatever reason, due to economic reasons, um bad investments, whatever it might be, um the taxpayer is still responsible for making sure that that benefit level is supported financially. So, we'd be required to essentially levy to get up to where we're at. I can say um that over the life of the association, the city has never had to that I'm aware of had to make an unvoluntary contribution. It's always been voluntary. I can also say that the fire relief has also over the years done an excellent job managing their relief fund and in the report you will note um both where we sit from a contribution standpoint. We contribute more than in the lump sum plan which is the vast majority of departments within the state. We contribute more than any other city not by firefighter but in total and we also at the same point have are in the top halfozen departments within the state with regards to the level of benefit that we provide. And I can say, and I've reported this before, unlike a lot of other departments that which are still paid on call, um, which is cheaper than having full-time staff in the area, um, we're the only one that's not suffering from lack of trying, lack of recruitment. We've, in fact, our last recruiting class, uh, applica applicant pool is the largest we had ever had. So, um, it's meeting the need of the incentivized. And I've always said uh with regards to firefighters, I've interviewed hundreds of firefighter candidates over the years, and I can say with confidence that there's only been one or two that have even asked about compensation related to it when people get on the fire department, they want to be in backdraft. They want to be charging out of the building as it's exploding behind them, carrying a child in one hand and a kitty in the other. They want to drive big red stuff, and they want the Brotherhood. >> It's on Netflix or Hulu right now. What what the retirement benefit does is when you're 12 years into it and you're having to go out to a pig barn fire at 3 in the morning when it's 20 below. That's what keeps you doing it. So, um we So, there is a clear benefit to it. Theou provides a clear understanding of what that relationship is going to be prior to putting theou in place. Um the city administrator would be discussing terms with the fire relief on an annual basis and many years it wasn't the same person from year to year and by the time we got it worked out we were starting discussions for the following year. So we wanted to make sure that something was put into place and since we've done it it's worked very very well. So we've been doing this for like 15 years. Um, the person who serves as the representative from the city council on the fire relief board is usually tasked with negotiating the updated when it's that time. Um, Kate is currently in that role and she has helped negotiate the last two. >> So, well, we're due again. It's expires at the end of the year. So, we're looking at the next three-year period. Um, Kate approached the fire uh the fire service area workg groupoup which is our advisory body which includes representatives from the townships and we have to keep in mind that between the two townships they pay the majority of the costs for the fire department about their feedback related to the update of theou one of the largest expenses operating expenses in the department is pension contribution and the recommendation is that we do a three-year contract again um that we keep the contingency amount or funding level at 110%. Um, and that as far as an annual adjustment to the contribution that it be 3%. The logic behind that is it has been historically 5% per year. Um, and to put it in the simplest terms, 5% is different on 80,000 than on 180,000 um, going forward. And we're and we are by a bit of a stretch the largest contributing city in the state. And so the thought was is that we should continue to make adjustments to reflect um essentially a coal adjustment, but um 5% might be getting to be a uh on the long side. So that's the recommendation to council. So Kate is seeking feedback from the rest of the council on those recommendations so she can begin discussions with fire relief on the upcoming. I support everything the direction that you guys were proposing or thinking. >> Okay, >> I agree. Same. >> That's easy. There we go. >> We need a formal motion. >> I think direction is adequate because it still needs to come back to you guys for approval ultimately. Anyways, [clears throat] >> we'll move on to engineering and I hope you have a second joke. >> No, I'm a one joke pony. So, [laughter] uh, yeah, nothing formal. All right. Community development. >> Um there was a memorandum in your packet related to a review of the city's sexually oriented use um codes, zoning codes. Uh periodic review of those codes is important to ensure that the city's zoning code is in compliance with um not necessarily state law, but case law. >> Constitutional law. >> Constitutional law. Yeah, not state law, but constitutional law. Maybe Andrea could take this one. Um, the last time the analysis was conducted was in 2019. Um, it's important to periodically review it because the city continually is annexing land into the city, reszoning properties. So, that will change um the percentage of land available in the city. Um the accepted ben benchmark I guess has been 5% of the land available within the city of the land in the city would be available for sexually oriented uses. Uh the analysis was uh reconducted now in 2026. The planning commission reviewed the analysis at their 20 at their May meeting and uh we basically found that the city's zoning code is in compliance or we don't have any concerns about the uh the code as it's written. There's 126 acres currently that would currently be available uh for a use to locate which is 6.34% of the land area in the city. The threshold that's often used is 5%. Is that correct, Andrea? >> That's not based on that's not an explicit number in federal code or statute. That's based on case law. >> Case law. >> Okay. >> Any questions? >> All right. Move on to parks. >> No updates. >> CC. >> Uh we had a meeting last night and last night. Sorry, Tuesday night. Just went over fire rescue days. Um, are you going to do the back at a later meeting? >> That'll be coming at the August 13th meeting. >> Okay. Um, had some great ideas, feedback for fire rescue days, what we will be doing maybe a little differently next year. Um, getting ready to start planning for Halloween. So, if you guys have any questions, Oh, and then the community picnic coming up August 22nd. Anybody that wants to come be there at 11, 10:30 would be great. >> If you can let us know in advance, that would be great. >> And we'll post it regardless. So even if you can't help, if you want to show up with kiddos or anything like that, we won't run into a open meeting violation. We doing hot hot dogs again this year? >> Yep. >> Nice. >> Yep. We did decide this year what we're going to allow to happen um partially for selfish reasons for the city to get volunteers. We're going to allow those nonprofits that service Alco New Market, hence the Lions, the Boy Scouts, and Chamber of Commerce. They can each bring a table out to one of the inflatables and sit there and monitor the inflatable and talk about their nonprofit to the parents while the >> children are jumping. >> So, we're going to do that this year. Other than that, um >> well, the item item for the 13th. So the council's discussed about changing the composition of the group and we have people that are interested in that that have been serving as just general volunteers but we'll be returning plan to return at the first meeting in August um with a resolution to amend the composition to provide for at large employees and adjust the local organization numbers to reflect those that are actually participating and then the act and then a second resolution to actually make appointments. That's about it, guys. Any questions? >> Move on to scale if there's anything? >> Uh, no. It's July, so >> summers. >> Everything's Everybody's out for the summer. >> I 35 is next and it's the same case there. Anything from the policy committees? first meeting. >> Any discussion by council? >> I I have one item if I can bring it up. It's very minor, but uh we have 10-year anniversary t-shirts. We actually have a big pile of them. They were bought at the time with the intent of everybody's going to want to buy these things because they'll be like hot cakes. Well, they're now a little bit dated and we have them. We run into the issue of what how do you what's the disposition of city property? Um, you can sell it at market so people can come and buy them. You can throw them away. Um, there's limited options. Basically, I wanted to have a discussion with council about what we do with them. Um, and the city attorney is here. Um, there have been thoughts of we just sell them for a buck because they don't have high value. People can buy them. There have been there's been discussion [clears throat] of that. Well, we we'll just give them to employees recognition as a recognition item for service, but I don't know how complicated that gets. That's why we'll refer to the city attorney for feedback. But I wanted to get some feedback from the council of with discussion what we do with the things. >> Well, she shook her head when you said, [laughter] >> so I'm assuming that's >> no go. I'm sorry. But can you sell them for a buck? Can we just put them on a table for free? >> Do that at the community picnic. >> I bet they'll go fast. >> Yeah, >> I'll take a couple. >> They're good sleep insurance. >> They'll cost you a buck. [laughter] >> I do have to say that the ones where we have the most of are for people of a more robust stature. Um, >> some good sleeping. I say put them out in the hallway for free >> and let council know when you're doing that. So maybe >> if if staff does want them, because I have to admit the one I have, which was when I was less robust, um is one of my favorite shirts, um can staff still buy them before we put them out in >> Okay. >> So you could sell them for a penny? >> We don't make pennies anymore. Fair market price [laughter] t-shirt. >> I mean, at a garage sale, you buy a shirt for a quarter. >> Is that Is that a reasonable logic? >> Sure. >> Okay, [laughter] there we go. >> All right. Take a motion to adjurnn. >> So moved. >> Second. >> Motion by Kate, second by Vandal. All those in favor? >> We are adjourned.