City Council - Regular Meeting

All right, we'll call the meeting to order. Please stand if you're able for the pledge of allegiance 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. Good evening and welcome folks. Uh looking for the roll call. Brie, please. [snorts] Mayor King present. Council member at large Austin. Council member Waller present. Council member Baskin present. Council member Posma present. Council member Hely present. Council member Obala present. Council member Fischer present. Mayor King we have a quorum.

Thank you Bri. Item number one is the adoption of the agenda uh with the amending of removing items 17 and 18 at AAO's request. Need a motion. Second. All in favor? I opposed. Motion carries. Item number two is a motion approving our minutes from our December 1st, 2025 truth and taxation hearing um on December 3rd, 2025. So moved. Second. All in favor? I opposed. That motion carries. Item number three under recognitions and award, we have an introduction of our finance director, Emily Burns. Welcome to uh city of Austin. Why don't you just tell us a little bit about yourself if you could?

Good evening, Mayor and Council. Uh my name is Emily Burns and I am coming from the city of Owatana where I worked as the finance director and prior to that um I was an assistant city administrator in Kansas and before that assistant finance director in Kansas. So, I'm happy to be here and uh learning all the different tips and tricks about Minnesota. Right on. Well, welcome and thank you for joining us. Uh looking for a motion for the consent agenda. So, move. Is there a second? Second. All in favor? I opposed. Abstain. Okay.

Bri Council member Obala, I. Council member Fischer, I. Council member Waller, I. Council member Baskin, I. Council member Posa, [clears throat] abstain. Council member Hely, I. Consent agenda passes 5 to one. Excuse me. Thank you, Bri. Uh under public hearings, uh we have a resolution uh for a public hearing on our 5-year capital improvement plan. Craig.

Uh thank you, mayor, members. As you recall from our discussion with the council meeting, we were going to move that to January meeting for work session and and then final approval at the last council meeting in January. We'd already posted a public hearing for tonight. So, we need we ask uh you to continue that to the last meeting on January 20th. in in uh the new year. Very good. Look for a motion to continue that. Move to continue till January 20th. [clears throat] Second Bri,

Council Member Obala. I. Council member Fischer. Hi. Council member Waller. Hi. Council member Baskin. Hi. Council member Psma. Hi. Council member Hely. I. Public hearing for the 5-year capital improvement plan will be moved to January 20th. Passes 6. Thank you, Bri. Under petitions and request, item number six is a resolution approving the tax levy for 2026. Emily, [snorts]

during the truth and taxation hearing held December 3rd, 2025, the 2026 budget and tax levy were discussed. At the hearing, a tax levy totaling 10,535,000 was presented for 2026 and tonight a resolution for the specified levy amount is being requested. Very good. Thank you, Emily. Council, any questions for Emily on this? Otherwise, looking for resolution. So moved. Second, Bri. Council member Obala, I. Council member Fischer, I. Council member Waller, I. Council member Baskin, I. Council member Posma, I. Council member Hely, I.

Resolution passes 6. Thank you. Moving on to item number seven is resolution adopting the budget for 2026. Emily, uh, the 2026 budget was presented during the truth and taxation hearing that was also held uh, December 3rd, 2025. Uh, total budget is 51,571,292 and is funded by local government aid, tax levy, and other revenues. Council approval of the 2026 budget resolution is being requested at this time. Very good. Thank you, Emily. Council any questions or looking for a resolution? Move to approve.

Second. Three. Council member Obala. I. Council member Fischer. I. Council member Waller. I. Council member Baskin. I. Council member Posma. I. Council member Hely. I. Resolution passes 6. Thank you. Item number eight is resolution authorizing the cancellization um of certain adarium tax levies. Emily.

All right. In uh 2015, the council passed a resolution to issue geo capital improvement bond 2015a in the amount of $1,285,3. The bond financed the Austin Utilities Capital Facility Project um which pledged a tax levy if needed. Austin Utilities collects revenue through fees to pay the debt down and count council approval to cancel the tax levy is being requested. Very good. Thank you, Emily. Council, any questions? I'm [snorts] looking for a resolution for item number eight. Move to approve. Second, Brie, please. Council member Obala, I. Council member Fischer, I. Council member Waller,

I. Council member Basket, I. Council member Posma, [clears throat] hi. Council member Khali I. Resolution passes 6. Thank you. Have number nine is a motion designating the Austin Daily Herald as the official newspaper for 2026. Bri. So attached in your packet is a quote from Crystal Miller at the Austin Daily Herald. We use them for legal publications. The Herald is the only newspaper we can designate as our official newspaper as laws. There are no other newspapers based in Austin. The rate is the same rate that we received in 2025. So, the clerk's office is requesting approval of the Austin Daily Herald to be designated as our official newspaper. Very good. Thank you, Bri. Council, any questions? [clears throat] So, move. Second. All in favor?

I opposed. That motion carries. Thank you. Item number [cough and clears throat] 10 is a resolution granting renewals of the 2026 licenses for the sale of hard liquor on sale, Sunday hard liquor on sale, and 32 beer off sale. [snorts] Um, if there's no questions, looking for resolution. So moved. Second. Bri. Council member Obala. I. Council member Fischer. I. Council member [cough] Waller. [clears throat] I. Council member Baskin. I. Council member Posma. I. Council member Hely. I.

Resolution passes 6. Thank you. Item number 11 is approving uh resolution approving temporary seasonal wages. Trish. Good evening, mayor and council. Uh before you tonight is our annual resolution looking at um adopting wage rates for our seasonal and temporary and part-time employees uh not otherwise covered under our um base base plan base pay plan. Um this we have reviewed this with the department heads and their requests have been incorporated within the ranges. Um, this also does reflect the Minnesota's uh minimum wage increase to 1141 as of January 1, 2026. I'm just requesting approval.

Very good. Thanks, Trish. Council, any questions? Looking for resolution? So moved. Second. Bri, please. Council member Obala. I. Council member Fischer. I. Council member Waller. Hi. Council member Baskin. I council member Postma I. Council member Hely I. Resolution passes 6. Very good. Thank you. Uh item number 12 is resolution approving change order number 10 for the wastewater treatment plant project. Stephen,

we review these with council on a quarterly basis. And before you tonight is, as you mentioned, work change directive number 10. There are, excuse me, change order number 10. There are six work change directives as part of this change order. uh they they cover a variety of items at the wastewater treatment plant to fund work change order number 10. Uh it is an total it's actually a credit to the overall project because of one of the work change directives that I'll talk about a little later on council items. But uh in valuing there there is a $433,69421 decrease to the domestic budget and an $84,62921 cost increase to the industrial budget. As we track our change orders, these this change order number 10 um puts us at an overall cost increase uh a total amount of change orders in the amount of 3,153,611.72. And that to date is a 3.15% increase to the overall project budget. As we've talked about before, um a 5% contingency was put into place for um cost changes throughout the course of the project. So, we are currently tracking below our 5% planned allocations. So, with that, I would request council approval of change order number 10.

Very good. Thank you, Stephen. Council, any questions for Mr. Lang on item number 13? I'm sorry, 12. If not, looking for a resolution approving the change order. So, move [snorts] Second Bri. Council member Obala. I. Council member Fischer. Hi. [clears throat] Council member Waller. Hi. Council member Baskin. I. Council member Postma. I. Council member Hely. I. Resolution passes 60. Thank you. Bri number 13 is a resolution approving an ICM agreement with International Paper. Stephen.

Yes. This is for their facility at that packages produces paper and packaging at 1900 8th drive northeast. It regulates uh flow CBOD, TSS, TKN, PH and POS discharge from their facility. They are charged extra um charges for everything over the normal household uh strength which is 200 mg per liter. So, our city staff monitors that and reg and determines when uh additional charges are necessary. This is a three-year ICM agreement with a a new revised expiration date of December 31st, 2028. Limits are the same as what they had in previous agreements and we'd recommend approval.

Good. Thank you, Stephen. Council, any questions on this? Looking for resolution. So moved. Second. Whatever number you want to put me down for, Bri. [clears throat] Bri, please. [snorts] Council member Obala. I. Council member Fischer. I. Council member Waller. Hi. Council member Baskin. I. Council member Posma. Hi. Council member Hely. I. Resolution passes 6. Very good. Thank you. Item number 14 is a approving resolution uh approving ICM agreement uh with Hormal Annex. Stephen.

Yes. This is the spice plant located at 1816 9th Street Northeast. Again, the wastewater is regulated and they are charged for strength greater than household waste just like the previous one we just reviewed. It again is a three-year agreement proposed to expire December 31st of 2028 and we would recommend approval. Very good. Thank you, Stephen. Council, any questions? Item number 14, looking for resolution. So moved. Second Bri. Council member Obala. Abstain. Council member Fischer. Hi. Council member Waller. Hi. Council member Baskin.

Abstain. Council member Posma. I. Council member Hely. I. Resolution passes 42 abstaining. Thank you, Bri. Moving on to item number 15. um resolution approving a wastewater treatment plant design consult waiver agreement. Stephen.

Yes. So I'll talk about uh 15 and 16 here combined as well as the work change directive 107 that was approved in item number 12. All of these are related to the need to provide a one-year uh extension to the overall project at the wastewater treatment plant. We developed, we worked through different agreements to accommodate this and ultimately uh for the one-year extension, there is an extra cost to do that to the city of $799,48. That is an extra cost for engineering services. So to offset that cost, as part of that change order number 10, we worked through and developed a credit from the contractor of $448,000 that would go to offset a portion of that extra cost to the city. In addition, uh this item is a waiver and release with our consultant that would provide a credit of $176,000. So again, what we're looking at here is this this extra of approximately $800,000 would be funded approximately 60% by the contractor with a credit uh 20% [snorts] credit from the consultant and then 20% city cost. So so the remainder after we apply the two credits is 175,000 to the city. Then in item number 16 is an agreement to approve those that amendment number one those extra costs after we've applied those credits u of resulting in 175,000 to the city. And then in addition to that there have been extra costs incurred for redesign

of city requested items throughout the project. those extra costs are $240,592 of consultant fees for those redesigns. So ultimately what we're in combination with the extra costs and the credits, the final tally for amendment number one in item number 16 comes to an additional cost to the city of $416,000. That's added on to our original engineering services which was 5,190 for a new total of 500 of 5,66,000 for engineering fees. It kind of wraps multiple council agenda items together, but I hope that was um a clearer way to explain it than how I did at the work session. So, with that, I'll open it to any questions you might have.

Very good. Thanks, Stephen. Council, any questions? Item number 15. Looking for resolution. So moved. Second. Three. [clears throat] Council member Obala. I. Council member Hely. I. Council member Fischer. I. Council member Waller. I. Council member Baskin. I. [clears throat] Council member Postma. I. Resolution passes 6. Thank you. Bri. Moving on to item number 16 is a resolution approving a wastewater treatment plant construction services amendment. Stephen, nothing to add unless there are any additional questions.

Move for approval. Second. Bri. Council member Obala. I. Council member Fischer. Hi. Council member Waller. I. Council member Baskin. I. Council member Posma. I. Council member Hely. I. Resolution passes 6. Very good. Thanks for having removed 17 and 18 on to 19's resolution approving a memorandum of agreement with LLS for 2026 health insurance. Craig,

thank you mayor members. Uh this is the latest of our MOAs that we've received. This one is from Lals. Uh that's our patrol division of the police department. Uh this has the base plan and alternate plan and the deductibles assigned to each as well as the rates for that. this is consistent with the percentage of allocation the council has uh approved. Um otherwise we're looking for your approval. Thank you Craig Council. Any questions? I was looking for a resolution approving the memorandum of agreement. So moved. Second. Bri. [snorts] Council member Obala. I. Council member Fischer. Hi. Council member Waller. I.

Council member Baskin. I. Council member Posma I. Council member Hely I. Resolution passes 6. Thank you B. Moving on to item number 20 is granting the planning and zoning department the power to contract for the removal of junk and or legally stored vehicles at the following location. 20A addresses 7076 a southwest the Bakari property. So moved. Second. All in favor? I opposed. That motion carries. Uh 20B uh motion uh for the planning and zoning to remove the junk at 502 11th Avenue Northwest the Lacal Tiba property. No motion. Second. Second. All in favor? I I

opposed. Motion carries. Moving on to citizens addressing the council. Is any citizens in the audience wishing to speak to council on items that were not on the agenda? Lindsay, honorary council member comments. second time. Second meeting. Uh it was very rapid fire tonight. So, um I'm just excited to learn more and experience more. Thank you. Thank you. Uh reports and recommendations. Craig, I have nothing. On to city council. We'll start with Paul. Um I would like at put on the next council meeting, do you have uh discussion on even parking during the winter months on the work session?

Yeah, work session. Okay. Very good. I we we've gone at this a couple times, I know, at least, but I'm [clears throat] happy to talk about it and uh see where we land. Thank you. Obala, nothing you honor. Thank you, Laura.

Um I wanted to thank the parks and wreck uh team and the nature center for their Marian Brite event last week. It was uh not a nice weather night, but sure was um great activities and uh lots of folks out there. Um, I also wanted to mention uh since I have the benefit of this microphone that um I don't think any person living in uh Austin or in the state of Minnesota is garbage. I stand with all of our immigrant communities um Somali and [clears throat] all others and um uh want to be very public about that. Um, I think Austin's always been a place that immigrants can come and and build their own American dream, um, as far back as our [snorts] history goes, and I hope it continues to be that.

Very good. Thank you, Laura. Um, you know, just been really thrilled with all the holiday things that they've been to do in Austin. Laura mentioned uh Mary and Bright. There's been symphony concerts, children's plays. It's just been really great to see everybody out and about. Um, heart's pretty heavy with some of the shootings that have happened both nearby in Steuartville and as far away as Australia. And I just am hoping and praying for a little peace for everybody as we go through the rest of this holiday season. Right on. Cheers to that. Thanks, Posty. Jason,

yeah, three things. One is I would echo Council Member Posma's um thoughts and you know, especially around Steuartville, you know, our hearts go out to that community. I know we have a number of people who have kids that go to school there, that live there, that live in that work in Austin and obviously you we have kids that compete against each other and you know we spend a lot of time as neighboring communities and so our hearts are are certainly heavy and we're we're holding them very close. Um, second thing is want to say thank you to the local business owners and business leaders, including our honorary council member Lindseay Compton, for coming to the last Port Authority meeting to share kind of their thoughts in terms of, hey, here's where we kind of see the future going for Austin and here's some ideas that we have and some things that we would love to see, you know, as we of opportunities and ideas we have for continuing to accelerate development in Austin. I thought it was a really good conversation. You know, I think when we look at the comprehensive plan and the great work that Holly and the team are doing, you know, schools, strong downtown, and parks are absolutely the top three that keep coming up over and over again. And so I think it builds a really solid foundation and excited to see as that continues to progress. Um, and third, thank you to all who helped with the leadership Austin local government day. Um, I know it was very wellreceived and the report I got from Dr. Baskin is it was way more interesting than listening to me talk about it. So, nice job.

Thank you, Jason. Becky, pleasure.

Uh, I'd like to again welcome Emily. Uh, thank you for um signing up for this. And I want to also thank Melissa Wilson for the time she spent as the interim. Uh, she did did a great job stepping up and making sure that everything was getting done that needed to be done. So, appreciate Melissa Wilson. Um, also want to I neglect to say his last meeting, but Obama was very generous with his time when I was asked to uh talk to the class of uh seventh, eighth graders in Buffalo, Minnesota about how Austin has become so welcoming and uh thought it'd be a value ad if Hobbala showed up in the office and he did. So, we double teamed him and it was just a nice event and just another reminder that I think in the long and the short of it, we're doing things right here. So, just uh Buffalo wants to learn from us. So appreciate Obala's time on that. Thank you. Also want to wish the staff and the and the council and the citizens a happy holidays. So thank you and it's been a good year. Challenging year they always are. Look forward to 2026. With that looking forward to a or looking for a motion to adjurnn.

So moved. Second. We are.