During the meeting, Jessica Green from Northland Securities presented the details of the bond issuance, designated as series 2024A. The bond will be used to finance crucial renovations and expansions at City Hall and the Police Department, with the city entering a lease agreement with the Economic Development Authority (EDA) for payments funded through city revenues. The bond sale attracted two bids, with Piper Sandler from Minneapolis providing the lowest bid. Green highlighted that the bond rating was A1, differing from the city’s general obligation bond rating of A3.

The council was briefed on necessary documents related to the lease revenue bond, including a ground lease that grants the EDA ownership interest in the City Hall property. A resolution for the bond sale was presented, moved, seconded, and carried without further discussion.

In addition to the bond approval, the council addressed the replacement of a valve at Water Tower number three. This valve, crucial for isolating water to prevent freezing and potential damage in winter, had failed to function effectively. Although unexpected and not included in the operational budget or the Capital Improvement Plan (CIP), the urgency of the situation warranted immediate action. The council approved resolution 2477 for the replacement at a cost not to exceed $27,162, with funding coming from CIP water funds. One council member expressed discomfort about withdrawing from the CIP without a clear plan for future accountability.

The council also discussed additional well exploration on a 212-acre city-owned site. Resolution 2478 authorized city staff to engage Trout Wells for further exploration, with a budget capped at $60,000. Previous well exploration had identified one potential site, and the new exploration aims to assess further potential, particularly focusing on various sections of the property. The need for additional water sources was emphasized, especially as the city is projected to need more water supply by 2030 based on growth forecasts.

A council member raised concerns about the specific locations of the proposed wells, particularly in relation to potential future development near the river. It was clarified that while the wells have fixed locations, the associated infrastructure could be designed to minimize visual impact. The dialogue emphasized balancing water supply needs with developmental aspirations for the riverfront property.

In other business, the council approved the replacement of the makeup air unit for the Domestic RAS building at the Wastewater facility under Resolution 2480. The current unit, from 2008, had reached the end of its 15-year service life and had not functioned during the previous winter. The proposed budget for the replacement was set at $32,760, with the city attorney to review the bid packet prior to final authorization.

Resolution 2479, concerning HVAC upgrades at the wastewater treatment facility storage building, was also approved. This building had been repurposed for storage and workshop use after the decommissioning of the Nessel pasteurization unit in 2017. The existing heating unit, from 1994, was due for replacement in 2024. The council approved the plans and specifications for the upgrade, allowing for bidding without immediate budget impact.

The council also set a public hearing for the proposed vacation of Pine Street Southeast. The petition, involving the Ramaker family and Mr. Zimmer, aims for redevelopment to improve safety through better turning radiuses and street setback, with the vacation process requiring signatures from adjacent landowners. The council confirmed the sufficiency of the petition and scheduled the public hearing for October 1st at 5:00 PM.