A primary focus of the meeting was the approval of change orders for two key construction projects, the Beach Oakridge reconstruction and the Willow Street Roundabout, both of which faced challenges due to the ineligibility of the original subcontractor, Anderson Brothers. Public Works Director Habigor introduced change orders for both projects. For the Beach Oakridge project, a change order proposed a unit price adjustment of $6.75 per ton, totaling an estimated $18,000. The Willow Street Roundabout project required a more significant adjustment, with a unit price increase to $21.32 per ton, resulting in an estimated cost of $29,000.

Habigor addressed concerns about liabilities with Anderson Brothers’ removal and clarified that Knife River would undertake the asphalt work. The city was deemed free from obligations to Anderson Brothers, with Landware handling the transition. The committee approved both change orders without opposition, despite concerns about Landware’s scheduling conflicts and the potential strain on their resources.

The council also engaged in a broader discussion about the contract language with vendors like Landware, emphasizing the need for better protection against subcontractor defaults. Members agreed that legal counsel should review contracts to ensure the city is shielded from incurring additional costs due to subcontractor issues.

Another notable agenda item involved a variance request for a garden shed on Mississippi Drive. The request, submitted by Allan and Nancy Albertson, sought permission to construct a 12-foot by 18-foot garden shed in their front yard, as the lot’s configuration did not allow for accessory structures in the rear. The planning commission recommended approval, and the council concurred, asserting there would be no alteration to the locality’s essential character.

The council also reviewed a variance request from Courtney and Joseph Douglas for a vertical addition to their home at 703 7th Street North. The addition required a side yard setback variance, as the home currently sits 4 feet 10 inches from the fence line, slightly less than the required 5 feet. The planning commission supported the request, noting it would not negatively impact the neighborhood’s historic characteristics.

In budget-related discussions, the Personnel and Finance Committee, chaired by Gabe Johnson, proposed accepting long-term disability and ancillary benefits plans, which would save the city and the Housing Authority a combined total of $1,676 annually. Additionally, a change order for the library project was approved, addressing HVAC issues for $1,650.50, bringing the total to $838,550.

The council deliberated on the Housing Authority’s 2026 levy request, with concerns about a proposed 31% tax levy increase. The discussion revealed a discrepancy between the salary increase and the levy hike, prompting questions about the Authority’s financial reserves. The council decided to table the request until the next meeting for further consideration.

Regarding the library’s budget, tensions arose from radio ads perceived as targeting the city. Despite some dissent, the council approved a 2% increase in the library levy, setting it at $155,840. The decision underscored ongoing challenges in balancing budgetary allocations with community needs.

The meeting also covered openings on various city boards and commissions, emphasizing the need for applicants due to expiring terms. The Mayor highlighted the importance of filling these roles promptly, given ongoing projects and discussions.