The council devoted attention to the extensive capital projects impacting the city’s water, electric, and wastewater services. At the forefront was the plan for a new water treatment plant, designed to last over 75 years and integrate future-proofing measures. The project will capitalize on a $5 million Special Appropriations Grant aimed at covering engineering expenses. Discussions highlighted the role of the “guaranteed maximum price” (GMP) in maintaining budgetary transparency and ensuring that the council has a clear understanding of potential cost changes. The new plant will also address inefficiencies in the current backwash process, which wastes millions of gallons annually. By reclaiming and treating this water, the city aims to enhance its resource management and reduce environmental waste.

Furthermore, the council addressed the integration of the water treatment project with broader infrastructure efforts, such as lead service line replacements and street reconstructions. Approximately 1,046 galvanized service lines in Brainerd need replacement, and the city plans to replace around 100 lines annually over the next decade. This effort, backed by a revolving $2.625 million fund, is strategically aligned with the city’s 2026 street reconstruction projects to avoid redundant streetwork and minimize disruption.

The council also discussed the innovative Construction Manager at Risk (CMAR) method for the water backwash and reclaim facility improvements. After rejecting initial bids that exceeded the budget, this approach was adopted to ensure cost-efficient project management and design alignment. Bolton and Mink’s proposal for CMAR services, amounting to $450,700, was approved.

Another topic included the approval of a draft leaking water service line policy. The policy addresses communication gaps by detailing notification protocols for property owners and repair timelines, especially during winter. The initiative is part of a broader effort to enhance policy consistency across city operations, with council members emphasizing the importance of clear and resident-friendly policies.

In the electric sector, the council highlighted the stabilization of the electric fund following previous rate increases. The water fund, showing a positive net position for the first time in years, is benefiting from recent rate adjustments, while the wastewater fund remains stable despite rising operational costs. An intriguing aspect of the financial discussions was the projection of $8.4 million in revenue from cryptocurrency sales in 2026, raising questions about dependency on this revenue stream.

The council also addressed updates to the city contribution policy, shifting from a mill rate basis to a percentage of revenue model set at 3% for 2026. This change was approved without opposition.

Additionally, the council reviewed a revised solar development agreement concerning the installation of a solar array at the Rotary Riverside Park pavilion. The revised agreement, prompted by concerns over panel replacement responsibilities, ensures the city is the primary financial contributor. The project must secure tax credits by completing a down payment by the end of 2025 and finishing by June 2026.

In other business, the council approved a statement of work with Clifton Larson Allen LLP for audit services. The proposal from Bolton and Mink for construction management services related to the water backwash and reclaim facility was also approved, focusing on budget alignment and infrastructure integration.

The meeting concluded with reports from city officials, including the Public Utilities Director, who had recently assumed the role. The director emphasized collaboration and introduced new tools like Blue Beam software for document management. The finance manager reported positively on the electric utility’s upgraded bonding rating and transitioning to electronic notices for cold weather rule compliance. The council also discussed renewable energy initiatives and the importance of staff retention and contributions to city operations.