City Council - Regular Meeting

It is 7:31. I will call the regular City Council meeting of May 4th, 2026 to order. We do have a quorum. Please stand for the pledge. I pledge 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. All individuals are asked to either silence or turn off all cell phones, pagers, and other electronic devices that may disrupt the meeting. Approval of the agenda. Before we do that, we have to amend the agenda. We have two items that we need to add. Item 6F under the consent agenda. Resignation, Aaron Giel, police officer, receive. And 6G, post police officer, approve. And that would fall underneath the consent agenda. With that, approval of the agenda as posted in accordance with the open meeting law and amended and here in place all agenda items on the table for discussion. What is the wish of the council? I'll make a motion to approve the agenda. I'll second. Motion by Mayor Zilka, second by Council member Liljegren. Any discussion? Hearing none, all those in favor? Aye.

Aye. Opposed? Carries. Approval of the minutes. Special work session meeting of April 20th, 2026 and the regular meeting of April 20th, 2026, approve. What is the wish of the council?

I'll make a motion to approve the minutes. Second. Motion by Council member Gushik, second by Council member Lundberg. Any discussion? Hearing none, all those in favor? Aye. Opposed? Carries. Approval of bills. Electronic checks 4201 through 4227 and checks 114312 through 114361 totaling $421,816.84. Approve. What is the wish of the council? I'll make a motion to approve the bills. Second. Motion by Council member Glaze, second by Mayor Zilka. Any discussion? Hearing none, all those in favor? Aye. Opposed? Carries. Awards, donations, presentations, and proclamations, we have none. So, we'll move on to the consent agenda. Under that, we have Airport Commission meeting minutes, April 16th, 2026, approve. Lower potency hemp edible retailer license, Coburn's Incorporated DBA Coburn's, number 2006, approve. On sale, on sale Sunday, and off sale liquor license, Elo Liquor LLC DBA Falls Bar, 107 1st Street Northeast, approve. Sale of fireworks license permit structure, Walmart and TNT Fireworks, approve. Submittal of computer financial emergency first responder no match grant application, thermal energy cameras, fire, ratify and confirm. Resignation, Aaron Giel, police officer, receive. And post police officer, approve. What is the wish of the council? Mr. President, I'll make a motion to

receive and approve the items on the consent agenda. Second. Motion by Council member Hansen, second by Council member Glaze. Any discussion? Hearing none, all those in favor? Aye. Opposed? Carries. Public hearings and lettings. Under lettings, item number one, lift station three panel and pump replacement to WW Getch. Getch. Getch. Total Control and Absolute Electric Public Works. Greg. Thank you, Mr. President. As you mentioned, we are looking at upgrading our lift station number three panel. This was originally installed in 1962 and then upgraded again in 1995. This particular lift station has a wet well, dry well, so there's two separate components to it. So, back in 2023, knowing that this station was was aging, we actually reached out to SEH to have them analyze the the thickness of the steel because that's in the dry well part just to verify that that steel container is still in decent shape to be able to to rehab the facility and put, you know, new pumps and and control panels into that. So, back in 2023, they did that. They determined that it was still structurally sound and that we could continue to utilize that configuration for for this lift station. In 2026, we budgeted an additional $125,000 to rehabilitate this this particular lift station. We reached out to two firms to get quotes. One is Total Control Systems. The other one is WW Getch or Total Control Systems and Quality Flow Systems. Total Control Systems with with WW Getch, they're slightly higher at $93,786. Quality Flow is at $90,987. We are requesting the council go with the one that's a little bit more expensive simply because they have done all of the other 18 lift stations that we have in town. And so, it makes sense to have consistent

equipment and machines at those various lift stations so we understand what each one is doing in the various parts. Ironically, last week at the end of the week, the control panel [snorts] at this particular lift station was giving us troubles and wasn't turning the pumps on and off. So, we had to work [cough] with with Absolute Electric [snorts] to actually get that bypassed to make that work. So, timing is almost perfect on on this particular item. So again, we are requesting that the council award the quotes from Total Control, WW Getch, and Absolute Electric for lift station number three and that's totaling $93,786 and that would be charged to the wastewater capital improvement fund. What is the wish of the council? I'll make a motion to award. Second. Motion by Mayor Zilka, second by Council member Lundberg. Any discussion? Hearing none, all those in favor? Aye. Opposed? Carries. Item two, dock donation agreement, Department of Natural Resources, LeBauer Park, authorize. Greg. Thank you, Mr. President. Back in 2002, the city entered into a cooperative agreement with the DNR for the the dock over at LeBauer Park. They are looking at donating a refurbished 30-ft dock to the city. The current one that is there would still be retained to to the city. And then we would also be getting, which we've already worked on that, replacement decking for the east side dock. So, the DNR is looking at upgrading both of those those those docks for us and that would be at no cost. We'd ask the council to execute the agreement with the state of Minnesota DNR to give us a refurbished 30-ft dock. And again, that would be at no expense to the city. What is the wish of the council? I'll make a I'll make a motion [clears throat] to approve. I'll second. Motion by Council member Glaze, second by Council member Meyer. Any discussion? Oh, yeah. If I may,

is it appropriate to say thank you to the DNR for doing this? Absolutely. Should just Should we send a thank you note from the city in the from the mayor and the city? Yep, we definitely can. Would you do that? Yep. Thank you. Any other discussion? Hearing none, all those in favor? Aye. Opposed? Carries. Old business, we have none. So, we'll move on to new business. First item, resolution 2026-27, call for public hearing, tax [music] increment financing district number 48, Barrett Land LLC, adopt. Alex. Thank you, Council President. So, as we discussed in the work session, today we are um [snorts]

pulling a resolution calling for the public hearing for the modification of uh our TIF district through the city, which is one, and calling for the creation of the proposed creation of TIF 48. This is for the expansion at Barrett Pet Foods. So, again, what this public hearing will be calling for is the proposed modification of the existing district, approval of the development program, proposed establishment of TIF District 1-48, and proposed adoption of the TIF plan. So, yeah, it's this just calling for the public hearing on those items. If you'd like, I can recount the details from the discussion. I think we're good. Yeah. I'll make a motion to adopt resolution 2026-27 calling for public hearing. I'll second it. Motion by Council member Hansen, second by Council member Gushik. Any discussion? Hearing none, all those in favor? Aye. Opposed? Resolution. Oh, that's right. Sorry. Resolution, call roll, please. Lundberg? Yes. Liljegren? Yes. Meyer? Yes. Zilka? Yes. Knafla? Yes. Glaze? Yes. Hansen? Yes. Gushik? Yes. Carries. Item B, general policy updates. Policy 90, federal grants and awards policy, approve. Sony. Thank you, Council President. Policy 90 refers to our federal grants and awards policy, which was adopted in October of 2025. This establishes our procedures and need to do single audits when we have a threshold of $750,000 for grants, federal grants and awards. Since then, the federal policy has changed that limit from $750,000 to $1 million. So, this change just is to reflect the same dollar threshold that the federal government has put out for

the requirement of those single audits. So, the city council looking for the city council to approve the amended policy 90 federal grants and awards policy updating the single audit threshold from $750,000 to $1 million to reflect the current federal guidelines. What is the wish of the council? I'll make a motion to approve. Second. Motion by Mayor Zilka, second by Wait. Councilman Ludvigson. Any discussion? Hearing none, all those in favor. Aye. Opposed. Carries. Item two, policy 95, generative AI, adopt. Alex. Thank you, Council President. So, policy 95 is essentially just covering the use of AI in governance. This also does extend out to any vendors, contractors, and others that do work with the city. We do understand that AI is an evolving um resource and technology that is being integrated into various components. Our finance programming has AI integrated into it. Our records retention system does as well. So, we wanted to make sure that we created a policy that is specifically addressing its use um and making sure that we're using it appropriately. This covers the accountability, transparency, accuracy, reliability, and privacy and security in use of AI. One of the biggest components that we are worried about are is the safety as well as the accuracy in AI usage. It is absolutely imperative that anything that is utilized or that AI is utilized in is verified through that human uh human in the loop requirement. Uh this is a tool that's utilized consistently again inside and outside of the city. So, we want to make sure that we're being responsible and having this policy in place will uh protect the

city. What is the wish of the council? Council President, I move to adopt policy 95 generative AI. I'll second. Motion by Councilman Lundberg, second by Councilwoman Myhre. Any discussion? Hearing none, all those in favor. Aye. Opposed. Carries. EDA policy updates, uh policy one, revolving loan fund, non-Davis-Bacon wages, approve. Sony. Thank you, Council President. Um this will cover both policy one and policy two. The reasons for the updates is to streamline our loan and grant programs. Both of these policies have been ran through the EDA. The EDA has reviewed and approved these program updates. And it's to primarily separate the grant and loan programs from each other, so it doesn't have to be one grouped lump thing. You can uh uh business could get a grant or a loan or both. And uh it also updates how we process this on the back end and sets our interest rate to um a number that is below prime, but it actually does not accrue up. It is just a flat interest rate for the life of the loan. So again, these policies are being updated to make sure they reflect the program guidelines that were already updated and approved by the EDA. So, the request is just to approve the updated policies as presented. What is the wish of the council? Council President, I'll make a motion to approve. Second. Motion by Councilman Glaze, second by Mayor Zilka. Any discussion? Yes, Council President. Are we approving both policy one and policy two or are we going to vote on them separately? Um we will vote on them separately, but we won't need any explanation for policy two because Sony gave us that explanation in her Okay. Thank you.

first one. Any other discussion? Hearing none, all those in favor. Aye. Opposed. Carries. Policy two, Economic Development Authority EDA commercial grant and loan policy, approve. What is the wish of the council? I'll make a motion to approve. Second. Motion by Mayor Zilka, second by Councilman Glaze. Any discussion? Hearing none, all those in favor. Aye. Opposed. Carries. Next item, change order one, High-Tech Construction T-Hangar rehabilitation project. Greg. Thank you, Mr. President. In front of you, you have change order number one with High-Tech Construction. This is for our T-Hangar project out of the airport. Um as you may know, we're reconstructing two of the hangars that we have out there. Um this particular one is the removal of the exterior gutters on the on both hangars, and that is a credit of $10,000. So, we would reduce the contract amount by $10,000. So, it go from 1.42 million to 1.41 million. There'd be no change in the contract time um but just a deduct in the total dollar amount. With that, uh we're asking the council to approve change order number one with uh High-Tech Construction uh in the amount of $10,000. What is the wish of the council? I'll make a motion to approve change order one. I'll second. Motion by Councilman Hansen, second by Councilman Myhre. Any discussion? Hearing none, all those in favor. Aye. Opposed. Carries. Any announcements? Greg, how's the splash pad coming? Really good. Um they're supposed to be working on the roof, I think this week. Uh so, [clears throat] they're coming along. All the walls are up. Um they'll work on the roof, and then once they get the roof and stuff enclosed, they'll be able to start working on the inside. So, it's coming along very nicely. Well, then thank you for that stop sign on that road out there. I think that's going to be a very important once that

splash pad opens up. Agreed. Yep. Any other announcements? Hearing none, we will adjourn at 7:47. I thought it was a wild game last night. I think so. 15 goals. Do you want to