[1. Call to Order.]
          [00:00:08]
          IT'S 6:00. I'D LIKE TO CALL THE. NOVEMBER 10TH. LAKE MILLS PUBLIC WORKS BOARD TO ORDER. 
          ROLL CALL, PLEASE. MR. PICKARD. YES. HERE. MISS LAWRENCE. HERE. MR. COOTS HERE, MISS WAGNER, HERE, MISS TREE. HERE, MR. SMITH. HERE. THANK YOU. ALL RIGHT. NEXT ON THE AGENDA IS 
          [3. Correction and/or Approval of the Minutes of October 13, 2026.]
CORRECTION AND OR APPROVAL OF THE MINUTES OF LAST MONTH, OCTOBER 13TH. ANYBODY WISH TO MAKE ANY AMENDMENTS OR WISH TO MAKE A MOTION TO APPROVE? MOTION TO APPROVE. ANYBODY WISH TO MAKE A SECOND? I'LL SECOND. ALL RIGHT. VERY GOOD. YOU HAVE A MOTION. AND SECOND. ALL THOSE IN FAVOR OF APPROVING THE MINUTES, PLEASE SAY AYE. I OPPOSED. MINUTES ARE APPROVED. 
          NEXT ON THE AGENDA IS QUESTIONS AND PUBLIC COMMENT. DO WE HAVE ANY QUESTIONS IN PUBLIC COMMENT? 
          [5. Utilities Director Report.]
ANYBODY WANT TO SPEAK? NO. ALL RIGHT. WE WILL MOVE ON THEN TO NUMBER FIVE UTILITY DIRECTOR REPORT. THANK YOU. IN YOUR PACKET IS THE DIRECTOR'S REPORT. IF YOU HAVE ANY QUESTIONS, I CAN ANSWER THEM. THE WATER DEPARTMENTS ARE CONTINUING ON THEIR ARMY METER CHANGE OUT PROJECT AND GETTING THOSE DONE. ON THE ELECTRIC SIDE. THE NORTHERN EXPANSION IS CONTINUING. THEY GOT A LOT OF THE CABLE AND CABLE CABLE AND PIPE IN THE GROUND, SO THEY'RE WORKING ON SETTING A LOT OF THE STRUCTURES ABOVE GROUND. AND THEN FOR EVENTS COMING UP, THE LAKE MILLS LIGHT AND WATER. THEY'RE DOING A 2026 CHRISTMAS TOY DRIVE TO BRING A NEW UNWRAPPED TOY TO THE LIGHT AND WATER BUILDING. TO BE ENTERED INTO A TO TO BE ENTERED FOR A PRIZE AND POTENTIALLY GET A $100 BILL CREDIT. AND THAT'S IN CONJUNCTION WITH THE LAKE MILLS OPTIMIST CLUB. SO IF YOU GOT ANY QUESTIONS, FEEL FREE TO ASK. BRIEF QUESTION ABOUT THE FIRST, VERY FIRST THING ON THERE WITH THE METER UPDATE. WITH 150 WATER METERS REMAINING TO BE CHANGED OUT. IS THERE IS THERE SOME SORT OF A GOAL OR A TIMETABLE TO HAVE THAT FINISHED BY? IS THAT SOMETHING THAT WE'RE HOPING THAT BY THE END OF 2027 THAT THEY'RE ALL ACCOUNTED FOR, OR DO? IS THERE REASONS THAT SOME OF THESE HANG ON AND WE MIGHT NEVER BE DONE WITH THEM, OR HOW DOES THAT WORK? YEAH, ULTIMATELY, THE GOAL IS TO GET THEM ALL CHANGED OUT. 
          AND AS WE GET DOWN TO THE REMAINING METERS, IT IS DIFFICULT TO GET INSIDE SOME OF THE BUILDINGS. SO THAT'S WHAT WE'RE WORKING TO DO RIGHT NOW IS BASICALLY SETTING APPOINTMENTS WITH DIFFERENT CUSTOMERS AND SHOWING UP TO GET INSIDE. SO IT'S GETTING DOWN TO THOSE FEWER, FEWER AND FEWER PLACES. SO OUR ULTIMATE GOAL IS TO GET THEM ALL REPLACED IN THAT TIMELINE. YOU KNOW, IT'S BASICALLY AS SOON AS WE CAN GET THEM AND WE'RE MAKING HEADWAY EVERY MONTH THEY'RE COMING DOWN. THANKS. ARE ALL THE ELECTRIC METERS NOW ON THE ARMY SYSTEM? ALL THE ELECTRIC METERS THAT WE ARE ABLE TO CHANGE OUT. THERE ARE SOME OLDER ONES THAT WE CAN'T UNTIL YOU REDO THE SERVICE THEMSELVES. AND THOSE ARE GENERALLY ON THE LARGER CUSTOMERS THAT EXIST OUT THERE. RIGHT. THANK YOU. ANYBODY HAVE ANY OTHER QUESTIONS? OKAY, THEN 
          [6. Public Works Director Report.]
MOVING ON TO PUBLIC WORKS DIRECTOR'S REPORT. THANK YOU. YOU'VE ALL RECEIVED A MEMO IN YOUR PACKET. YOU KNOW, RIGHT NOW, THIS TIME OF YEAR, IT CONSISTS OF IF WE'RE NOT PICKING UP LEAVES WITH THE LEAF VAC, THE SWEEPER, AND HAULING LEAVES, WE'RE TRAINING FOR SNOW SEASON AND GETTING THOSE THOSE PIECES OF EQUIPMENT READY TO GO FOR THE YEAR. SO IF YOU HAVE ANY QUESTIONS, I'D BE HAPPY TO ANSWER THEM. WHEN IS THE LEAF VACUUM GOING TO BE FIXED? COULD YOU JUST REPEAT THAT? I'M SORRY. WHEN IS THE LEAF VACUUM GOING TO BE FIXED? PARTS. PARTS ARRIVED TODAY. I EXPECT THAT OPERATIONAL THURSDAY, IF NOT SOMETIME WEDNESDAY. ANY ANY OTHER QUESTIONS FOR BRIAN? I GOT A QUICK QUESTION ON THE LEAVES. SO I'VE LIVED IN MY HOUSE FOR TEN YEARS. I'VE NEVER RAKED THE LEAVES AND PUT THEM ON THE CURB BECAUSE WE JUST MOW THEM AT THE END OF THE YEAR. HAVE YOU GUYS EVER DONE LIKE A OUTREACH EDUCATION ON, YOU KNOW, NOT WASTING ALL THAT TIME AND ENERGY AND MONEY ON PUTTING LEAVES TO THE SIDEWALK? YOU KNOW, WE CAN DO MORE THAN WHAT WE ARE CURRENTLY DOING. SO WE DO HAVE A POST ON OUR WEBSITE CURRENTLY THAT DOES DELVE INTO A LITTLE BIT OF THAT, OF TAKING CARE OF THOSE LEAVES YOURSELVES AND KIND OF MULCHING THEM UP AND KEEPING THEM IN YOUR, ON YOUR LAWN AS, AS FOOD. YEAH, YEAH. YOU KNOW, FOR YOUR LAWN, IT DOESN'T DELVE INTO IT TOO DEEP. IT'S, IT'S KIND OF A ALL 
          [00:05:02]
AROUND. WE DO HAVE A YARD WASTE CENTER, A DROP OFF SITE, BUT ALSO YOU CAN MULCH YOUR LEAVES AND CONTAIN THEM THAT WAY. BUT WE COULD DO A BETTER JOB AND A LITTLE BETTER OUTREACH ON THAT AS TRYING TO ENCOURAGE RESIDENTS TO DO SO. WE'LL DEFINITELY TAKE THAT UNDER CONSIDERATION. I DON'T KNOW IF YOU COULD REDUCE CITY COSTS BY INCREASING. YEAH, I'M ALWAYS LOOKING AT AVENUES TO DO THAT, SO I APPRECIATE IT. OKAY. ANY OTHER QUESTIONS OR COMMENTS. 
          [7. Discussion/Recommendation: Electric Utility Cost of Service Study.]
ALL RIGHT. THEN WE'LL MOVE ON TO NUMBER SEVEN DISCUSSION. RECOMMENDATION ON ELECTRIC UTILITY COST OF SERVICE STUDY. ALL RIGHT. THANK YOU. ON OUR LAST ELECTRIC RATE CASE, THE PSC REQUIRED THE ELECTRIC UTILITY TO DO ANOTHER RATE CASE BY JANUARY OF 2027. SO EARLIER THIS YEAR IN APRIL, WE WERE AUTHORIZED TO HAVE WP ON OUR BEHALF START THE ELECTRIC UTILITY COST OF SERVICE STUDY. AND THEN TONIGHT, MALLORY IS HERE FROM WP TO HELP GIVE THAT PRESENTATION. SO. THANK YOU, MALLORY FROM WP. SO IF YOU WANT TO STOP ME THROUGHOUT THE PRESENTATION WITH A QUESTION, FEEL FREE. SO JUST A LITTLE BIT ABOUT WP. WE PARTNER WITH MEMBER PUBLIC POWER UTILITIES TO SUPPORT AND ENHANCE THEIR LOCAL VALUE FOR THE LONG TERM. 
          WP WAS FORMED IN 1980 BY ABOUT 30 MUNICIPAL UTILITIES IN WISCONSIN THAT BELIEVED WORKING TOGETHER WOULD HELP EACH COMMUNITY MEET AND SERVE LOCAL NEEDS. TODAY WE HAVE 50 LOCALLY OWNED AND NON-FOR-PROFIT UTILITIES AND ONE CO-OP. ALL ARE LONG TERM, ALL REQUIREMENTS. 
          POWER SUPPLY RECRUITMENT IS WHAT MAKES UTILITY A MEMBER OWNED AND EACH MEMBER HAS. 
          MEMBER COMMUNITY HAS A VOICE ON. WORK. WITH THIS JOINT ACTION MODEL, WP SUPPORTS YOUR LOCAL UTILITIES DELIVERY OF SAFE, RELIABLE ELECTRIC SERVICE WITH COMPETITIVE RATES. THE 51 LOCAL UTILITIES THAT COLLECTIVELY SERVE MORE THAN 220,000 HOMES AND BUSINESS IN THREE STATES. 
          NEXT SLIDE. THE MISSION OF WP HERE IS LISTED ON THIS SLIDE. SO EARLY ON, WP MEMBERS RECOGNIZED THAT EFFECTIVE RATES SUPPORT. IT'S CRITICAL TO LONG TERM FINANCIAL HEALTH, LOCAL UTILITIES RATE SERVICES IS THE DEPARTMENT THAT I WORK IN. AND THIS WAS ONE OF OUR FIRST SHARED OFFERINGS. BEYOND THE DELIVERY OF WHOLESALE POWER TO OUR MEMBERS, MY DEPARTMENT SUPPORTS INDIVIDUAL MEMBERS WITH RATE STUDIES AND RATE APPLICATIONS TO THE PUBLIC SERVICE COMMISSION. AND THAT'S WHY I'M HERE TONIGHT. THIS IS ONE OF THE KEY WAYS WP SUPPORTS ITS MEMBERS BY HELPING YOU RECOVER THE COSTS OF PROVIDING ELECTRICITY FROM YOUR CUSTOMERS AND KEEPING THE UTILITY IN GOOD FINANCIAL HEALTH. ALL RIGHT, SO FIRST, I'M JUST GOING TO KIND OF GO OVER THE STEPS OF THE RATE APPLICATION PROCESS. WE DEVELOPED THE RATE APPLICATION WITH WE WORK WITH LAKE MILLS THROUGHOUT THIS ENTIRE PROCESS WITHIN THE RATE APPLICATION. 
          THIS INCLUDES THREE PARTS, WHICH I'LL GO OVER A LITTLE BIT LATER ON, BUT THE REVENUE REQUIREMENT, COST OF SERVICE STUDY AND RATE DESIGN FOLLOWING THE APPROVAL FROM THE BOARD HERE AND ALSO AT CITY COUNCIL. THIS APPLICATION WILL THEN BE SUBMITTED TO THE PUBLIC SERVICE COMMISSION. THE UTILITY WILL NOTIFY THE CUSTOMERS OF THE PENDING INCREASE IN RATES, AND THIS IS TYPICALLY DONE AS A BILL INSERT. AND ACTUALLY THE UTILITY WILL DO THIS TWICE THROUGHOUT THE PROCESS. THEN WHILE AT THE PSC, THE THE THE PSC WILL REVIEW THE APPLICATION. 
          THERE'LL BE ASSIGNED A COUPLE DOCKET COORDINATORS AND DATA REQUESTS WILL OCCUR. AND WP IS STILL PART OF THAT PROCESS. THE PSC HAS A GENERAL RULE TO COMPLETE RATE APPLICATIONS WITHIN 200 DAYS. SO FROM DATE OF FILING TO FINAL ORDER, RIGHT NOW THAT'S A LITTLE BIT LONGER. 
          AND IT'S BEEN AVERAGING AROUND 300 DAYS. SO YOU WOULD EXPECT TO HAVE NEW RATES IMPLEMENTED SOMETIME IN 2027. FOLLOWING THE PSC REVIEW, A PUBLIC HEARING IS HELD AND THIS IS DONE VIRTUALLY. 
          YOU CAN HAVE AN OPTION TO HAVE IT IN PERSON FOR RESIDENTS. AND THIS IS WHERE YOU'LL BE INCLUDED WITH THE HEARING JUDGE AND THE RATES WILL BE REVIEWED THERE. AFTER THAT, THE UTILITY WILL NOTIFY THE PSC OF THEIR EXPECTED IMPLEMENTATION DATE AND THE NEW RATES WILL BECOME 
          [00:10:02]
EFFECTIVE. SO NOW, JUST TO DIG A LITTLE BIT INTO THE PARTS OF THE RATE APPLICATIONS I'VE MENTIONED, THERE'S THREE PARTS THE REVENUE REQUIREMENT, COST OF SERVICE STUDY AND RATE DESIGN. SO THE REVENUE REQUIREMENT IS BASICALLY HOW MUCH IN TOTAL THE UTILITY NEEDS AND REVENUE. SO WE LOOK AT UTILITIES OPERATION AND MAINTENANCE EXPENSES, THEIR CAPITAL BUDGET AND OTHER VARIOUS THINGS. THE UTILITIES LAST RATE ADJUSTMENT WAS FEBRUARY OF 2024. AND THAT WAS ABOUT A 4% INCREASE. AND PRIOR TO THAT, THEIR LAST RATE INCREASE WAS ACTUALLY IN 2014. WE ALSO THE UTILITY ALSO NEEDS TO RECOVER COSTS WITH ANY LARGE PROJECT WHICH IS INCLUDED IN THIS RATE CASE, AND THAT'S ASSOCIATED WITH THE 25 KV NORTHERN EXPANSION PROJECT. AND THAT'S DETAILED IN THEIR CONSTRUCTION AUTHORIZED DOCKET. 
          MALLORY, DID YOU JUST SAY THAT THE LAST RATE INCREASE WAS 2024 FOR 4%? AND THEN BEFORE THAT WAS 2014? YEAH. THANK YOU. SO THAT'S THE REVENUE REQUIREMENT. LOOKING AT THE REVENUE AND TOTAL. THEN AFTER WE HAVE THAT TOTAL REVENUE, WE LOOK AT THE COST OF SERVICE STUDY. SO THROUGH THE COST OF SERVICE STUDY WE EVALUATE WHETHER REVENUES WILL RECOVER THE UTILITIES COST OF SERVICE BY PROVIDING EACH RATE CLASS. SO THE UTILITY HAS BUILT ONE SYSTEM THAT IS USED BY MANY DIFFERENT CUSTOMERS. THAT SYSTEM THAT THAT THE COST TO RUN THE SYSTEMS AND THE THE CUSTOMERS THAT USE THE SYSTEM ARE CONSTANTLY CHANGING. SO THE COST TO SERVE THEM IS GOING TO BE DIFFERENT BETWEEN RATE CLASSES. AND SO LIKE I MENTIONED THAT EACH CUSTOMER USES ELECTRICITY DIFFERENT. SO THE COST TO SERVE THEM WILL BE DIFFERENT. SO FOR EXAMPLE, A LARGER POWER CUSTOMER IS GENERALLY LESS COST TO SERVE THAN A RESIDENTIAL CUSTOMER. AND YOU'LL SEE THAT LATER ON IN THEIR ACTUAL COST OF SERVICE RESULTS. AND THEN FINALLY, AFTER WE HAVE THE COST OF SERVICE RESULTS, WE COME UP WITH THE RATE DESIGN. SO HOW TO COLLECT COSTS FROM EACH RATE CUSTOMER USING DIFFERENT RATE COMPONENTS. SO THERE'S TWO MAIN DRIVERS. THE DEMAND WHICH IS HOW MUCH ELECTRICITY A CUSTOMER USES IN A GIVEN TIME. AND THEN THERE'S ENERGY HOW MUCH A CUSTOMER USES OVER TIME. SO WE GENERALLY WANT TO COLLECT DEMAND THROUGH A DEMAND CHARGE AND ENERGY COSTS THROUGH ENERGY CHARGES WITH AN ON AND OFF PEAK SPLIT. AND THEN UTILITY ALSO HAS FIXED AND VARIABLE COSTS. 
          SO WE WANT TO, YOU KNOW, INCLUDE RATES WITHIN THE UTILITIES RATE OFFERINGS TO COLLECT FIXED AND VARIABLE COSTS. SO YOUR FIXED COST IS GOING TO BE COLLECTED THROUGH DEMAND AND CUSTOMER CHARGES, WHILE THE VARIABLE COSTS ARE GOING TO BE COLLECTED THROUGH THE ENERGY CHARGES. AND THEN FINALLY WE LOOK AT PRICE SIGNALS. HOW CAN WE DESIGN RATES IN A CERTAIN WAY SO THAT IT CAN GIVE A SIGNAL TO A CUSTOMER TO LOWER THEIR BILL, WHICH IN TURN LOWERS THE BILL FOR THE UTILITY OVERALL? SO NEXT UP. THERE WE GO. SO THIS IS LOOKING AT YOUR REVENUE, THE UTILITIES REVENUE REQUIREMENT TOTAL. SO LOOKING AT THE OVERALL INCREASE THAT UTILITY NEEDS FOR THE YEAR 2027. SO BASED ON UTILITIES 2027 OPERATING AND CAPITAL BUDGETS, WE'RE PROJECTING THE UTILITY TO OPERATING MARGIN OR RATE OF RETURN OF 1.56 THERE. THEREFORE THE UTILITY IS REQUESTING THE 7.79% OR A LITTLE UNDER 700,000. 
          AND THIS IS FOR EARNING A FAIR MARGIN OF AROUND 6.5% OF THAT RATE OF RETURN. AS MENTIONED, THIS APPLICATION WILL BE REVIEWED BY THE PSC. SO IT IS MOST LIKELY THAT THE NUMBERS THAT YOU ARE SEEING HERE TODAY WON'T BE THE FINAL OVERALL INCREASE WHEN THE UTILITY IS COMPLETED AT PSC. ALL RIGHT. SO SOME FACTORS CONSIDERED IN RATE DESIGN THEN AS MENTIONED THE COST OF SERVICE RESULTS. SO THAT'S ONE OF THE THINGS WE LOOK AT WHEN WE'RE DESIGNING RATES. WHAT COULD BE WHAT SHOULD BE COLLECTED FROM EACH RATE CLASS. ALSO RECOVERING FIXED COSTS OR FIXED CHARGES. WE ALSO LOOK AT THE COMPARISON TO THE INVESTOR OWNED UTILITY. 
          AND I'LL SHOW THE SUMMARY KIND OF OF THAT LATER ON. WE ALSO LOOK AT THE IMPACT OF 
          [00:15:03]
INDIVIDUAL CUSTOMER BILLS. SO THE SMALL POWER AND LARGER POWER CUSTOMERS, WE SEE HOW WE DESIGN THE RATES AND HOW THOSE FINAL RATE DESIGN WILL IMPACT THOSE INDIVIDUAL CUSTOMERS. AND THEN LASTLY, AGAIN, JUST PRICE INCENTIVES. SO HOW CAN WE DESIGN RATES IN SUCH A WAY THAT IT LOWERS THE COST FOR THE CUSTOMER AND THE UTILITY IN THAT? SO NOW I'LL JUST GO INTO SOME OF THE ACTUAL PROPOSED RATE DESIGN AND TARIFF CHANGES THAT WE'RE MAKING. AS MENTIONED, YOU KNOW, IT'S IMPORTANT FOR THE UTILITY TO RECOVER THEIR FIXED COSTS. SO UTILITY IS PROPOSING TO INCREASE CUSTOMER CHARGES. AND YOU'LL SEE THERE THE RESIDENTIAL SERVICE GOING FROM 12 TO 15 AND THEN GENERAL SERVICE 13 TO 16. THE UTILITY IS ALSO PROPOSING A NEW RATE TARIFF OFFERING. AND THIS IS AN RG THREE RESIDENTIAL OPTIONAL THREE TIER TIME OF DAY. THIS IS AN OPTIONAL RATE THAT CAN BE USED. SO WITH THE IMPLEMENTATION OF AMI DATA UTILITY AND WITH. MOST CUSTOMERS HAVE UTILITIES ABLE TO OFFER THIS THREE TIER RATE. 
          SO AS YOU CAN SEE THE DIFFERENT OFFERINGS THERE TIME PERIODS THERE IS THE PEAK FROM 3 TO 7 P.M. THE OFF PEAK FROM MIDNIGHT TO 5 A.M. AND THEN THE STANDARD RATE THAT ARE THE ALL OTHER HOURS. SO CURRENTLY LAKE MILLS OFFERS A G TWO OPTIONAL TIME RATE. AND THERE'S 13 CUSTOMERS ON THAT. SO THE G THREE RATE DESIGN COULD BE MORE FEASIBLE FOR CUSTOMERS TO SHIFT THEIR ELECTRIC USE TO LOWER COST HOURS DURING THAT FOUR HOUR ON PEAK IN THE G THREE, THEN UNDER THE G TWO, WHICH IS JUST ON AND OFF PEAK RATE WITH A 12 HOUR WINDOW ON ON. ALSO, THE G THREE IS KIND OF GEARED TOWARDS ELECTRIC VEHICLE CUSTOMERS, SO CUSTOMERS CAN SET THEIR ELECTRIC VEHICLE TO CHARGE DURING THAT MIDNIGHT TO 5 A.M. WHICH THEN THEY CAN LOWER THEIR OVERALL BILL BASED ON THOSE OFF PEAK, LOWER COST HOURS. THE RATE IS OPEN TO ANY CUSTOMER. 
          IT'S NOT JUST TOWARDS ELECTRIC VEHICLES, BUT IT IS INCENTIVIZED FOR THOSE CUSTOMERS THAT DO HAVE THAT TO LOWER THEIR BILL WITH THAT SMALLER AMOUNT THERE. AND THEN LASTLY, THE LAST CHANGE IS FOR THE SMALL POWER RATE CLASS. SO RIGHT NOW THE UTILITY HAS A CP1 RATE AND A CP1 OPTIONAL TIME AND DAY RATE. AND BASICALLY WE'RE MERGING THESE TWO TARIFFS TOGETHER WHERE ALL CP1 CUSTOMERS WOULD BE BILLED ON A TIME OF DAY RATE OR AN ON AND OFF PEAK CHARGE. IT IT'S LESS WORK FOR THE UTILITY TO MANAGE BETWEEN CUSTOMERS MOVING BETWEEN RATE CLASSES. BUT THEN IT'S ALSO GIVING CUSTOMERS THE ABILITY TO SHIFT USAGE TO THE OFF PEAK HOURS, WHICH THEN COULD LOWER THEIR BILL. MALLORY, HOW WOULD A CUSTOMER CHOOSE TO BE ON THE G THREE? YEAH, SO, WELL, FIRST THEY WOULD WANT TO SEE IF THEY WOULD BENEFIT COMPARED TO THEIR CURRENT RATE CLASS TO THE G THREE. AND ACTUALLY, LAKE MILLS PROBABLY HAS A SYSTEM CALLED MY METER THAT THE CUSTOMER CAN ACTUALLY GO IN. I BELIEVE THEY DO. LUCAS. 
          DO WE HAVE THAT IN MY ACCOUNT? YEAH. YEP. I KNEW IT WAS SOMETHING MY. AND THEY CAN GO IN AND PUT IN THEIR CURRENT USAGE TO SEE WHAT THEIR RATE WOULD BE ON THAT RATE. RIGHT. 
          AND SO LET'S SAY THIS ELECTRIC VEHICLE OWNER KNOWS THAT THIS WOULD BE A GOOD PROGRAM. HOW DO THEY WHAT'S THE NEXT STEPS? I GUESS THAT'S A QUESTION FOR YOU. I DON'T KNOW IF THEY HAVE TO ACTUALLY APPLY FOR THE RATE OR NOTIFY THE UTILITY THAT THEY'RE INTERESTED IN THIS RACE, RIGHT. 
          THEY WOULD NOTIFY US IF THEY'RE INTERESTED. WE COULD IF THEY IF THEY HAVE QUESTIONS, WE COULD ASSIST WITH THAT COST COMPARISON AS WELL BETWEEN THE TWO DIFFERENT RATES. AND THEN IF IT MAKES SENSE FOR THEM OR NOT, AND THEN THEY COULD BE MOVED TO THAT G THREE RATE ONCE IT GETS IMPLEMENTED NEXT YEAR. YEAH. OKAY. YEAH. SIMILAR TO HOW THERE ARE G TWO OPTIONAL RATE IS NOW. SO IT WOULD BE THAT SAME PROCESS. SO I THINK IF A CUSTOMER WAS INTERESTED IN THAT OPTIONAL RATE THEY'D NOTIFY THE UTILITY. MAKE SURE THAT IT'S THE RIGHT RATE FOR THEM. IT ALSO ONCE THEY'RE ON THE G THREE RATE, THEY DO HAVE TO STAY ON THAT RATE FOR A YEAR. 
          SO THEY CAN'T BE SWITCHING ON AND OFF OF IT. AND THAT'S THE SAME WITH THE G TWO RIGHT NOW. 
          [00:20:08]
THEY'RE ALL OPTIONAL RATES WITHIN THE SHARED OFFERINGS. ALL RIGHT. THIS NEXT SLIDE THEN THIS IS GOING OVER THE COST OF SERVICE RESULTS. SO THIS IS SHOWING WHAT WE ESTIMATE THE UTILITY WILL COLLECT IN THE PRESENT RATES RIGHT NOW COMPARED TO WHAT OUR COST OF SERVICE RESULTS ARE SHOWING. SO AS YOU CAN SEE THAT VARIES BY RATE CLASS. AND THIS IS JUST ONE OF THE DETERMINANTS THAT'S USED WHEN WE ULTIMATELY DESIGN THE FINAL RATES FOR EACH RATE CLASS. SO THEN WITH THAT THIS IS LOOKING AT THEN THE CLASS COMPARISON OF PRESENT REVENUE TO THE PROPOSED RATE. SO THIS IS THE PROPOSAL THAT LAKE MILLS IS GOING WITH FOR THE INCREASE FOR EACH RATE CLASS. COST OF SERVICE RESULTS COME IN DETERMINING THIS. THE COMPARISON TO THE THE IMPACT TO INDIVIDUAL BILLS. BUT THIS IS THE PROPOSAL THAT LAKE MILLS IS GOING WITH FOR EACH RATE CLASS WITH. THEN YOU SEE THE OVERALL INCREASE OF THE 7.79%. AND, YOU KNOW, JUST A REMINDER, AGAIN, THIS ALL IS REVIEWED BY THE PSC. SO THIS IS WHAT LAKE MILLS IS PROPOSING. ULTIMATELY THE PSC, THEY ACTUALLY PERFORM THEIR OWN COST OF SERVICE RESULTS. AND SO WE'LL BE IN COMMUNICATION WITH THEM THROUGH THAT REVIEW PROCESS TO WORK WITH THEM ON THE FINAL RATES. AND THEN I HAD A QUESTION ON THAT TOO. SO LOOKING AT OTHER CUSTOMERS, BASED ON THE RATE RECOMMENDATIONS THAT YOU'VE MADE, HOW CLOSELY DOES THE PSC AGREE TO THAT? YEAH, IT'S GENERALLY PRETTY CLOSE. WE HAVE VERY SIMILAR COST OF SERVICE RESULTS. THE DIFFERENCE, I WOULD SAY OVERALL, IF YOU'RE LOOKING AT THE PERCENTAGE INCREASE BY RATE CLASS, THAT WILL STAY THE SAME. THE DIFFERENT RATE COMPONENTS. IF YOU'RE LOOKING AT LIKE CUSTOMER CHARGE, DEMAND CHARGE WITHIN THE DIFFERENT TARIFFS, THAT MIGHT VARY A LITTLE BIT DIFFERENT. I MENTIONED FOR THE RESIDENTIAL RATE CLASS, I SAID 15. THAT THAT COULD BE THAT COULD CHANGE. THAT'S ALWAYS A STICKY SITUATION WITH PSC. THE CUSTOMER CHARGE I KNOW IS AT 15 RIGHT NOW. AND THAT'S KIND OF LIKE THE MAX THAT THEY'LL GO TO. 
          SO YEAH, GENERALLY THEY'RE PRETTY CLOSE. YOU KNOW, WE HAVE A GOOD RELATIONSHIP WITH PSC AND THEY UNDERSTAND OUR COST OF SERVICE RESULTS ARE PRETTY SIMILAR. Y IS THE CUSTOMER CHARGE A STICKY ISSUE WITH PSC. WELL THEY HAVE WE'VE REACHED A LIMIT ON THE CUSTOMER CHARGE. 
          SO YOU KNOW, A FEW YEARS BACK THEY I OWE YOU. IT'S KIND OF THAT, YOU KNOW, MUNICIPAL UTILITIES ARE KIND OF BALANCED OFF WHAT THE IOU IS A LITTLE BIT, WHICH IS UNFORTUNATE. IT'S A COMPLETELY DIFFERENT ENTITY AND RUN COMPLETELY DIFFERENTLY. BUT, YOU KNOW, THEY SET THESE STANDARDS WITH THE IOU FOR THEIR CUSTOMER CHARGE. THEY'VE ACTUALLY LOWERED SOME OF THOSE IN PAST IN RECENT YEARS. AND SO THOSE CUSTOMER CHARGES HAVEN'T CHANGED AT ALL FROM THAT KIND OF MAX AMOUNT OF 15. OKAY. SO BASED ON THOSE RESULTS, THEN HERE WE'RE LOOKING AT THE MONTHLY BILL COMPARISONS FOR RESIDENTIAL AND GENERAL SERVICE CUSTOMERS. SO AN AVERAGE RESIDENTIAL CUSTOMER THERE THAT USED AROUND 600 KILOWATT HOURS WOULD SEE ABOUT AN $8 INCREASE IN THEIR MONTHLY BILL. AND THEN A COMMERCIAL CUSTOMER THAT USED AROUND 1400 KILOWATT HOURS A MONTH WOULD SEE A DECREASE IN THEIR MONTHLY BILL, A LITTLE UNDER $25. AND IS THAT USING THE 15 VERSUS THE 12? YEP. THIS IS BASED ON THE PROPOSED RATES. YEAH, YEAH. I DIDN'T INCLUDE THE ACTUAL PROPOSED ALL RATES BY RATE CLASS. I THINK THAT WAS SEPARATE IN YOUR PACKET THERE. 
          BUT IT'S NOT IN MY PRESENTATION. BUT I'M HAPPY TO ANSWER ANY QUESTIONS ABOUT THAT SEPARATE. 
          [00:25:03]
SO LASTLY THEN THIS IS THE COMPARISON TO WEBCO. AND SO THIS IS BASED ON THE PROPOSED REVENUE. SO THE 7.79% INCREASE BY RATE CLASS TWO WEST COAST CURRENT REVENUE. WE ENERGIES THEY'RE CURRENTLY IN FOR A RATE INCREASE FOR 2027 AND 28 INCREASE. SO THEY'RE KIND OF THEY DO A TWO TWO YEAR INCREASE IN ONE RATE FILING. THEY REQUESTED 4.7 AND 2027 AND 4.5 AND 28. SO THOSE ARE BOTH PENDING. THOSE WILL HAVE I MEAN THE 27 WILL HAVE AN EFFECTIVE DATE OF 1127. SO THAT RIGHT NOW IT'S A LITTLE UNDER 28%. LAKE MILLS IS FAVORABLE COMPARED TO WEBCO. THAT PERCENTAGE INCREASE WILL ONLY GO UP. SO THAT'S ALL I HAVE. I'M HAPPY TO ANSWER ANY QUESTIONS. AND ON YOUR CHART UNDER GENERAL, IS THAT CONSIDERED THE BUSINESS? YEAH. 
          OKAY. SMALLER BUSINESSES THEY HAVE, YOU KNOW, SMALLER GAS STATIONS, SMALLER BUSINESSES. 
          THAT HAS A DEMAND THRESHOLD OF 15 KW AND CLASS. THANK YOU. 50 A DAY, 50 A DAY OR WHAT? YEAH. 
          YEAH. OKAY. YEAH. SO LOOKING THROUGH THE PACKET OF MATERIALS, THE RATE OF RETURN IN 2026 WAS 2.2%. AND WE'RE REQUESTING 6.5%. WHY ARE WE REQUESTING 6.5% AS A RATE OF RETURN? YEAH. SO THAT IS BASICALLY THE PSC AUTHORIZES MUNICIPAL UTILITIES TO COLLECT A RATE OF RETURN. YES. YOU'RE A NON-FOR-PROFIT UTILITY, BUT YOU STILL NEED TO COLLECT SOME RETURN FOR DEBT PAYMENTS. BUILD UP YOUR CASH RESERVE. SO 6.5 IS BASED ON CURRENT APPROVALS OF RECENT RATE STUDIES THAT WE'VE SEEN AT PSC. SO THE PSC COMES UP WITH A BENCHMARK RATE OF RETURN. AND RIGHT NOW THAT'S AT 6.4% AND CHANGES GENERALLY EVERY QUARTER OR EVERY COUPLE MONTHS. THEY USE A 20 MUNICIPAL BOND INDEX TO COME UP WITH THAT RATE OF RETURN. SO IT'S KIND OF BASED ON HISTORICAL APPROVALS OF WHAT WE'RE SEEING. ANY OTHER QUESTIONS? SO I HAVE SOME QUESTIONS SPECIFIC TO CUSTOMER CHARGE. I UNDERSTAND THE ADVANTAGE OF A LARGER CUSTOMER CHARGE FOR PROVIDES FINANCIAL CERTAINTY FOR THE UTILITY, BUT LARGER CUSTOMER CHARGE ALSO HAS DISADVANTAGES. AND IT MAKES ENERGY CONSERVATION LESS ATTRACTIVE. IT CAN BE IT'S CONSIDERED COULD BE CONSIDERED. 
          IT HAS A BIGGER IMPACT ON LOW INCOME PEOPLE BECAUSE IT'S IT'S A BIGGER PROPORTION OF THEIR BILL. SO THERE'S, THERE'S REASONS FOR A SMALLER CUSTOMER CHARGE AS WELL, WHICH I'M SURE THE PUBLIC SERVICE COMMISSION CONSIDERS AS PART OF THOSE. PART OF THE REASON THAT THEY THEY. DON'T LET THAT GET TOO HIGH. AND, YOU KNOW, US, YOU KNOW, AS, AS AS, AS RESIDENTIAL CUSTOMER OF MYSELF AND AS, AS CITY BOARD MEMBER, I HAVE SOME OF THE SAME CONCERNS. THE. 
          GOING FROM $15 TO $12 IS A 25% INCREASE. WHEREAS THE PROPOSED ENERGY CHARGE KILOWATT HOUR CHARGE PROPOSED INCREASES ONLY 6%. SO GOING FROM 12 TO 15 IS A BIG JUMP, 25 VERSUS THAT ENERGY CHARGE. I DON'T THINK THE PSC IS GOING TO GRANT THAT. THE LAST TIME IT WAS A LARGER JUMP TO AND THEY THEY THEY BROUGHT THAT DOWN AS WELL. BUT. IT'S JUST THAT PROPOSAL I IT'S SOMETHING WPI SEEMS TO BE CONSISTENT AT DOING, BUT I, I WISH, YOU KNOW, I DON'T SEE THE SAME VALUE IN IT. I SEE THE OVERALL. SOCIETAL VALUES IN KEEPING IT MORE MANAGEABLE AND NOT SO HIGH. SO THAT'S ALL. AND IT IS KIND OF IT'S NOT ALL THIS IS NOT A. THIS IS WHAT IT HAS 
          [00:30:05]
TO BE. THERE'S, THERE'S WIGGLE ROOM IN HOW THIS CAN BE SET. AND IF THE BOARD WANTED TO PROVIDE FEEDBACK OR EMOTION, THEY COULD DO SO. CORRECT. YEAH, YEAH. IS IT THE RECOMMENDATION THAT, YOU KNOW, WPI IS IN COMMUNICATION WITH LAKE MILLS? AND SO THIS IS THE PROPOSAL THAT THEY ARE OFFERING. I UNDERSTAND YOUR CONCERN WITH THAT. AND SO, YES, THAT IS PART OF THE REASON WHY THAT IT'S KIND OF AT A FIXED LEVEL. THEY'VE GOTTEN TO A POINT WHERE THEY FEEL COMFORTABLE WITH THIS RATE, AND IT HASN'T GOTTEN ANY HIGHER THAN THAT. I THINK THAT ALLEVIATES SOME OF THE CONCERNS, PARTLY THAT YOU HAD REGARDING LOW INCOME CUSTOMERS, KIND OF LIMITING THAT CUSTOMER CHARGE, YOU KNOW, SOMETIMES TO WITH LOW INCOME CUSTOMERS WHERE THEY LIVE, THEIR APPLIANCES OR EVERYTHING MIGHT BE MORE INEFFICIENT TO. SO THAT ALSO YOU CAN SEE THE FLIP SIDE OF THAT TOO. ASSUMING THAT THERE WOULD BE NO NEW MAJOR INFRASTRUCTURE PROJECTS IF THE PROPOSAL AS PRESENTED WOULD BE WOULD BE ADOPTED, HOW LONG WOULD THAT HOLD FOR? WHEN WOULD WPP? I THINK WE THINK ANOTHER RATE PROPOSAL WOULD BE NECESSARY. I'M. I'M CERTAIN THE PSC WILL PUT A REQUIRED RATE CASE INTO OUR APPROVAL FOR OUR LAST ONE WAS 24. I IMAGINE WE'LL HAVE A REQUIREMENT TO DO ONE PROBABLY BY 2029 OR 2030. 
          THE PSC HAS CONSISTENTLY BEEN PUTTING IN REQUIREMENTS OF PERFORMING RATE CASES ON A REGULAR BASIS TO ENSURE THAT CASH FLOW IS ABLE TO MANAGE NEW ANY ANY NEW DEBT THAT'S TAKEN ON, AND ALSO PERHAPS BECAUSE THE TIME THAT IT TAKES TO GET A RATE CASE APPROVED IS SO LONG WITH THE PSC. ALL RIGHT. SO THE. THE, THE TEN YEAR GAP THAT WAS THAT WAS THERE BEFORE. THAT'S SOMETHING THAT'S UNLIKELY TO BE SEEN. AGAIN, I WOULD NEVER RECOMMEND TO THE POLAR EXPLORER OF THE CITY COUNCIL THAT WE GO THAT LONG BETWEEN ENGAGING WITH THE PSC ON WHAT OUR RATE SHOULD BE. ALL RIGHT. I HAVE ANOTHER QUESTION. BACK IN 2024, WHAT WAS THE RATE OF RETURN REQUESTED BACK THEN? DOES ANYONE KNOW? I DON'T KNOW WHAT IT WAS REQUESTED, BUT THE UTILITY RATE RECEIVED A 7% RATE OF RETURN. SO I WOULD ASSUME THAT IT WAS GENERALLY AROUND THAT THE THE RATE OF INFLATION WAS A LOT HIGHER DURING THAT TIME. SO THAT ALSO CHANGES THAT RATE OF RETURN. ONE OF THE WHEN THE CASE GOES TO THE PSC, AS I MENTIONED, THEY GET ASSIGNED PSC STAFF. ONE OF THE STAFF MEMBERS IS ACTUALLY JUST LOOKING AT UTILITIES, DEBT PAYMENTS AND CASH RESERVES AND MAKING SURE THE UTILITY IS IN CORRECT FINANCIAL STATUS TO MAKE THOSE DEBT PAYMENTS. SO THAT'S ONE OF AND THEY'RE JUST SIMPLY LOOKING AT THE RATE OF RETURN. AND IS THAT RATE OF RETURN. AND THEN ULTIMATELY WHAT THE OVERALL INCREASE IS ABLE FOR THE UTILITY FINANCIALLY. SO I HAVE THAT SLIDE FROM 2023, THE RATE OF RETURN AT THAT TIME WAS 4.35%. RATE OF RETURN REQUESTED WAS 7%. INCREASED REQUIRED PERCENT INCREASE WAS 3.69%. SO THE REQUESTED RATE OF RETURN WAS SEVEN. OKAY, SO WE'RE STILL FALLING BELOW THAT, BUT WE'RE STILL ADJUSTING THE RATE TO TRY TO HIT IT SIMILAR. YEAH. AND THEY ARE THE PSC ULTIMATELY SETS THE RATES. SO WE SUGGEST THEY THEY ULTIMATELY MAKE THE DECISION ON ALL OF THIS. WE ASKED FOR SEVEN AND THEY GAVE US 3.6. IS THAT WHAT THEY GAVE US. WE GOT A 7% RATE OF RETURN WITHIN THE. THE RATE INCREASE WAS THE. WAS NOT. YEAH. OKAY. 
          TO GET. SO THERE'S A RATE OF RETURN THAT THE UTILITY EARNS EVERY YEAR. I'M ASSUMING THAT WAS THE THREE THAT YOU MENTIONED. YOU NEED TO INCREASE THEM TO GET YOU UP TO THAT 7% RATE RETURN. OKAY. AND IS THERE ANY REASON WHY THE BUSINESS PERCENT INCREASE WAS LESS THAN THE RESIDENTIAL PERCENT INCREASE? YOU'RE TALKING ABOUT LIKE FOR NOW? YEAH, YEAH. AND 
          [00:35:05]
THAT'S BASICALLY KIND OF DOING A BALANCE OF LOOKING AT THE COST OF SERVICE RESULTS WHILE ALSO THE COMPARISON TO WESCO, THAT'S JUST KIND OF MY GENERAL WAY OF GOING THROUGH THAT PROCESS AND USING THOSE COSTS TO SERVICE RESULTS, LOOKING AT THE IMPACT TO INDIVIDUAL CUSTOMERS. AND FROM THERE. SO AGAIN, THAT'S A RECOMMENDATION THAT THAT I'M PROVIDING BASED ON MY EXPERIENCE. AND SO THAT'S THE PROPOSAL FOR HERE TODAY. AND AGAIN, THE PSC WILL LOOK AT THESE NUMBERS AND DO WHAT THEY WANT. CORRECT. THEY HAVE THEIR OWN COST OF SERVICE RESULTS. SO THEY'LL PERFORM THAT. AND YOU'LL SEE THAT TOO IN SOME OF THEIR EXHIBITS THAT I'LL GET POSTED ON THE PSC WEBSITE. YOU CAN FOLLOW ALONG THE CASE FOR THAT TOO. ANY OTHER QUESTIONS? ANYBODY WISH TO MAKE A MOTION. I'LL MAKE A MOTION. MOTION TO RECOMMEND FOR ADOPTION. THE CITY COUNCIL RESOLUTION AUTHORIZING THE CITY MANAGER TO SUBMIT AN ELECTRIC UTILITY RATE CASE TO THE PUBLIC SERVICE COMMISSION. MR. COOTS WILL SECOND. ALL RIGHT MOTION AND SECOND, TO MOVE THIS ON TO THE TO TO TO THE CITY COUNCIL. ANY FURTHER DISCUSSION? SEEING NONE. 
          ROLL CALL PLEASE. MISS LAWRENCE, I MR. COATS, I MISS WAGNER, I. MISS TRAYER I MR. SMITH, I MR. PICARD, I MOTION PASSED SIX ZERO. ALL RIGHT. NEXT IS ITEM EIGHT PRESENTATION WASTEWATER 
          [8. Presentation: Wastewater Treatment Plant (WWTP) 60% Design.]
TREATMENT PLANT 60% DESIGN. ALL RIGHT. YEAH. THANKS. EVAN IS HERE TONIGHT FROM STRAND. AND HE'S GOING TO DO A BRIEF PRESENTATION ON 60% DESIGN UPDATE FOR THE WASTEWATER TREATMENT PLANT. ALL RIGHT. I SEE SOME FAMILIAR FACES HERE. SO IS YOUR MIC ON? NOW? IT'S ON. 
          YEAH. I SEE SOME SOME SOME FAMILIAR FACES HERE. SO I THINK SOME PEOPLE YOU'VE SEEN THIS BEFORE, BUT I WANT TO GIVE AN UPDATE ON THE DESIGN. CURRENTLY WE'RE AT 60% OF OF THE DESIGN. 
          AND SO LUCAS HAS ASKED ME TO COME AND GIVE A PRESENTATION TO YOU GUYS ABOUT WHERE THINGS SIT. 
          SO I THINK I WANT TO GO BACK AND TALK ABOUT THE NEED FOR THE PROJECT. I KNOW A NUMBER OF YOU ATTENDED THE PLANT TOUR LAST YEAR, WALKING AROUND THE PLANT AND JUST SEEING THE AGE OF THE PLANT. SOME OF THE ELECTRICAL EQUIPMENT, LIKE THE MOTOR CONTROL CENTERS, THE AGE OF THOSE AND OTHER EQUIPMENT. AND THEN ALSO THE GROWTH OF THE CITY AND INCREASED FLOWS AND LOADINGS TO THE PLANT ARE ANOTHER REASON THAT WE'RE GOING MOVING AHEAD WITH THE DESIGN FOR THE PLANT UPGRADES. SOME SOME PICTURES FROM THE PLANT JUST SHOWCASING THE AGE OF THE PLANT. IT'S SERVED THE CITY WELL SINCE THE EARLY 1980S, BUT IT'S TIME TO MAKE SOME UPGRADES. 
          I JUST WANT TO REVIEW AGAIN THE PROJECT STAGES. WE'VE BEEN THROUGH, THE FACILITIES PLANNING STAGE. WE'RE THROUGH THE PRELIMINARY DESIGN STAGE, WE'RE NOW IN FINAL DESIGN. AND THEN THE NEXT STEP WOULD BE CONSTRUCTION. SO DURING FACILITIES PLANNING, WE LOOKED AT THE PLANT'S AGE. WE DEVELOPED SOME ALTERNATIVES AND COMMON IMPROVEMENTS FOR THE PLANT AND SUMMARIZE THOSE COSTS. DURING PRELIMINARY DESIGN, WE WORKED WITH CITY STAFF TO FURTHER DEVELOP THOSE ALTERNATIVES AND REFINE THE UPGRADES FOR THE SITE. AND 
          [00:40:05]
DURING FINAL DESIGN. WE'VE GOTTEN THROUGH MOST OF THE PROCESS DESIGN, SO WE'RE ADDING IN THE ELECTRICAL COMPONENTS, THE HVAC COMPONENTS, AND THE STRUCTURAL CONCRETE MASONRY COMPONENTS, AND THEN PREPARING A SET OF BIDDING DOCUMENTS FOR THE CITY TO ADVERTISE AND THEN PUBLICLY BID. AND THEN THE NEXT PHASE WOULD BE CONSTRUCTION OF SAID FACILITIES. SO HERE'S THE OVERALL OVERVIEW OF THE PLANT. I'M JUST GOING TO GO THROUGH THE DIFFERENT UPGRADES. FEEL FREE TO STOP ME THROUGHOUT. IF YOU'VE GOT QUESTIONS, I'LL IT'S GOING TO BE A LITTLE BIT HIGH LEVEL IN TERMS OF THE UPGRADES. BUT IF YOU'VE GOT SPECIFIC QUESTIONS, GO AHEAD AND ASK. SO THE, THE BLUE BOX THERE IS THE INFLUENT PUMPING STATION. THAT'S WHERE THE FLOW ENTERS THE PLANT, REPLACING THE INFLUENT PUMPS IN THERE, AS WELL AS THE INFLUENT SCREENS AND WASH PRESS. AT THE OXIDATION DITCHES, WHICH IS THE HEART OF THE TREATMENT OF THE PLANT. WE'RE REPLACING THE AERATORS WITH LARGER AERATORS. THEY'LL ADD MORE OXYGEN SO THE PLANTS ARE ABLE TO TREAT MORE LOADINGS. ADDING A THIRD CLARIFIER TO MEET SOME OF THE WISCONSIN CODE FOR THE TREATMENT OF THE PLANT. WITH THE INCREASED FLOWS, A THIRD CLARIFIER WAS NEEDED TO MEET THE CODE AND OUR 110. AND THEN WE'RE REPLACING THE MECHANISMS IN THE TWO EXISTING CLARIFIERS AND THE COVERS ON THE TWO EXISTING CLARIFIERS. SO ALL THREE CLARIFIERS WILL HAVE NEW MECHANISMS AND NEW COVERS. WITHIN THE RAAS PUMPING BUILDING IN THE MAIN BUILDING, DOING SOME MODIFICATIONS TO THE MAIN BUILDING TO SEPARATE THE PROCESS SPACE FROM THE OFFICE OR NON PROCESS SPACE THAT IS IN THAT BUILDING, AS WELL AS REPLACING PUMPS IN THE BASEMENT, HVAC IN THAT BUILDING. AND THEN THE THERE'S A SMALL BUILDING RIGHT NEXT TO IT WHERE REPLACING THE PUMPS IN THAT BUILDING AS WELL. UP ON THE NORTH SIDE OF THE SITE WHERE THE CURRENT CHLORINE CONTACT TANKS ARE REMOVING THE CHLORINE DISINFECTION AND GOING TO ULTRAVIOLET DISINFECTION, MUCH SAFER FOR THE OPERATORS. AND SORT OF THE WAY THE INDUSTRY IS GOING THESE DAYS. WE'RE ALSO REPLACING THE BLOWERS AND THE BLOWER BUILDING THAT PROVIDE DISSOLVED OXYGEN TO THE EFFLUENT BEFORE IT GOES OUT TO THE RIVER, SO THAT YOU'RE NOT DEPRIVING THE ORGANISMS OF FISH OUT IN THE RIVER OF OXYGEN. 
          THOSE BLOWERS ARE PRE 1980. SO THOSE WOULD BE A GOOD UPDATE THERE. ANOTHER ADDITION TO THE PLANT AND THE CORNER BY THE OXIDATION DITCHES IS A NEW GRIT DRYING PAD. IT'LL HAVE TWO BAYS ONE FOR STORMWATER GRIT AND ONE FOR SANITARY GRIT. AND THEN THE CONTROLS AND OPERATIONS BUILDING ON THE SOUTH SIDE OF THE SITE. AT THE CURRENT SUBSTATION THAT'S GOING TO BE DECOMMISSIONED. I WANT PRETTY HIGH LEVEL THERE. ANY ANY QUESTIONS ON ANY OF THE COMPONENTS? IT'S A MAJOR REBUILD, ISN'T IT? IT IS A MAJOR REBUILD. WE'RE TOUCHING MOST BUILDINGS AT THE SITE. SO. ANOTHER ANOTHER ACROSS THE SITE UPGRADE IS REPLACING ALL THE MOTOR CONTROL CENTERS. SO THEY'RE THE MAJOR EQUIPMENT THAT POWERS THE MAJOR ELECTRICAL EQUIPMENT THAT POWERS ALL THE EQUIPMENT, ALL THE 480 VOLT EQUIPMENT ACROSS THE SITE, REPLACING HVAC ACROSS THE SITE, UPDATING THOSE TO MEET NFPA 20, WHICH IS THE NATIONAL FIRE PROTECTION STANDARDS THAT ARE PRETTY MUCH INDUSTRY WIDE NOW. AND THEN. 
          THE CONTROLS AND OPERATIONS BUILDING ON THE SOUTH SIDE OF THE SITE WILL HOUSE FOUR EQUIPMENT BAYS FOR THE CITY'S LARGE EQUIPMENT FOR THE SANITARY SEWER, AND AS WELL AS A NEW LAB, NEW TRAINING ROOM AND A NEW CONTROLS ROOM. SO THE CONTROLS TO OPERATE THE 
          [00:45:08]
EQUIPMENT ACROSS THE PLANT TO AUTOMATE SOME OF THAT EQUIPMENT AND DIAL IN THE WAY YOU OPERATE IT FOR BETTER TREATMENT. SO A BRIEF SUMMARY OF PROJECT COSTS, THE TOTAL PROJECT COST THAT WAS PRESENTED DURING PLANNING WAS 28.6 MILLION. OUR CURRENT OPINION OF PROBABLE CONSTRUCTION COST IS 30.1 MILLION. THIS IS ROUGHLY A 5% INCREASE. AND THEN I THINK, AS YOU GUYS KNOW, THERE WILL BE A RATE INCREASE TO SUPPORT THE CLEAN WATER FUND DEBT SERVICE TO PAY FOR THIS PROJECT. I'VE GOT A COUPLE SLIDES ON THE REASON FOR THE INCREASE IN COST. 
          SO THERE WAS SOME ADDITIONAL SCOPE ADDED TO THE PROJECT, REPLACING THE EXISTING GENERATOR ON SITE. SO THE CURRENT GENERATOR FULLY POWERS THE EXISTING SITE. BUT WITH SOME OF THE NEW LOADS FROM THE UPDATED EQUIPMENT, A LARGER GENERATOR IS NEEDED TO POWER EVERYTHING ON THE SITE. IF ELECTRICAL SERVICE IS CUT SO THAT THE WASTEWATER KEEPS GETTING TREATED AND AND KEEPS FLOWING THROUGH THE PLANT AND OUT TO THE RIVER, AND THEN WITH THE EXISTING PLANT AND THE INCREASED FLOWS FROM FROM GROWTH, THERE WAS A NEED TO ADD SECONDARY PIPES THAT RUN PARALLEL TO THE EXISTING PIPES TO FIT THE INCREASED FLOW ON THE HYDRAULIC PROFILE OF THE SITE. SO RATHER THAN TRYING TO MOVE CONCRETE TANKS TO BE HIGHER OR CONCRETE TANKS TO BE LOWER, ADDING THESE PIPES TO DECREASE HEADLOSS SO THAT YOU CAN FIT THAT HIGHER FLOW ON YOUR EXISTING SITE. SO SO IS ONE PIPE EXISTING AND ANOTHER ONE ADDED, OR IS IT TWO NEW PIPES? ONE PIPE WILL REMAIN EXISTING, A NEW ONE WILL BE ADDED. YOU'LL BE ABLE TO SWITCH BETWEEN THE TWO SO YOU CAN SWITCH OVER TO THE NEW ONE AND DO SOME TELEVISING THE OLD ONE TO SEE THE CONDITION OF IT. ANOTHER UNFORESEEN CONDITION THAT INCREASED COSTS DURING THE GEOTECHNICAL INVESTIGATION OF THE SITE. THE GEOTECH DURING SOIL BORINGS FOUND SOME UNSUITABLE SOILS ON SITE, SO THERE'LL BE SOME EXCAVATION FOR THE CONTROLS AND OPERATIONS BUILDING AND THE GRIT DRYING PAD THAT'S OVER BY THE OXIDATION DITCHES. THOSE. THE SOILS THEY FOUND HAVE A LOT OF CLAY IN THEM. SO OVER TIME, THE STRUCTURES BUILT ON THEM WILL SETTLE MORE THAN OTHERS. AND THE SETTLEMENT PREDICTED BY THE GEOTECH IS GREATER THAN THE ALLOWABLE SETTLEMENT THAT YOU WOULD ALLOW FOR A BUILDING. SO DO YOU KNOW HOW MANY FEET EXCAVATION WILL NEED TO BE DONE? IT'S ROUGHLY TEN FEET OF ADDITIONAL EXCAVATION FOR EACH OF THOSE TWO. YEAH. ALL RIGHT. SO NEXT STEPS. NOW THAT WE'RE AT 60%, THE PUSH TO 90% AND THEN TO BIDDING DOCUMENTS TO THE CITY, WE'LL CONTINUE DETAILING THE CONCRETE AND MASONRY, THE STRUCTURAL WORK, AS WELL AS THE ELECTRICAL AND HVAC DESIGN. WE WILL SUBMIT TO THE DNR IN FEBRUARY. THE DNR HAS A THREE MONTH REVIEW PERIOD FOR REVIEWING THE DOCUMENTS, AND THEN WE'LL PREPARE FINAL DOCUMENTS INCORPORATING ANY COMMENTS THAT WE GET FROM THE CITY IN THAT TIME OR THE DNR FOR ADVERTISEMENT IN MAY OF NEXT YEAR, AND THEN BIDS WOULD OPEN IN JUNE. ANY CONCERNS ABOUT THE TIMING OF THESE BIDS RELATIVE TO THE CONSTRUCTION TIME FRAME IN TERMS OF GETTING GOOD BIDS? THIS IS RELATIVELY GOOD TIME TO BID. CONTRACTORS COULD POSSIBLY GET ON SITE ALREADY IN 2027 AND GET MOVING ON THINGS I'VE SEEN WHERE, YOU KNOW, BIDDING IN WINTERS CAN BE BETTER. I THOUGHT IT IS. THERE IS SOME ADVANTAGES TO BIDDING IN IN WINTER YOU GET ESPECIALLY LIKE RIGHT AT THE END OF THE 
          [00:50:01]
YEAR BECAUSE YOU GET CONTRACTORS LINING UP THEIR WORK FOR THE FOLLOWING YEAR. 
          YEAH, I THINK THE WAY WE, WE LAID OUT THE SCHEDULE MAY MAY WORKED OUT FOR GETTING EVERYTHING COMPLETED, FINALIZED THROUGH DNR. I DON'T KNOW THAT THERE'D BE AN ADVANTAGE TO THE CITY FOR LIKE PUSHING IT OFF ANY FARTHER TO THAT WINTER TIME FRAME. I THINK WE'LL SEE HOW THE BIDS COME IN. RIGHT? YEAH. TRUE, TRUE. AND PART OF THAT, IT'S A MULTI YEAR PROJECT ITSELF. SO YEAH, WHEN DIFFERENT COMPONENTS OF THE PLANT TAKE PLACE, YOU KNOW, THEY CAN THEY CAN FACTOR THAT INTO THEIR BID WITH WINTER AND SUMMER TIME. THANK YOU. I'VE GOT AN OVERALL SCHEDULE HERE. AND I THINK WHAT WHAT LUCAS WAS TALKING ABOUT IS THAT FINAL BLUE BAR CONSTRUCTION WILL BE ONGOING FROM 2027 THROUGH 2029. AND THEN THE LAST THING I WANT TO TOUCH ON IS THE RATE INCREASES FROM THE PROJECT, AS WELL AS THE SEWER CAPITAL IMPROVEMENTS PLAN. ELDERS PERFORMED A CASH FLOW ANALYSIS ON THE SEWER RATES. AND I'VE GOT A QUICK SUMMARY HERE OF THE PROPOSED RATE INCREASES EACH YEAR THROUGHOUT THE PROJECT. ONCE THE FIRST PAYMENT IS DUE AT THE END OF CONSTRUCTION, THE CLEAN WATER FUND PROGRAM REQUIRES YOU TO HAVE A RATE IN PLACE THAT ALLOWS YOU TO PAY BACK THAT DEBT. SO WE'RE ABLE TO TAKE THAT RATE INCREASE AND. PUT IT THROUGHOUT THE YEARS OF THE PROJECT, RATHER THAN HAVING IT HAPPEN RIGHT AT THE BEGINNING. AND I THINK THIS WILL LEAD INTO THE NEXT ITEM ON THE AGENDA. 
          DON'T POST IT ON FACEBOOK EVER. DOUBLE, DOUBLE IN FIVE YEARS. JEEZ, THAT'S A THAT'S A LOT. 
          WHAT HAPPENS IN 2031, I BELIEVE ELLERS HAS A PROPOSED RATE INCREASE FOR THAT TOO. THAT SHOULD BE IN YOUR PACKET. I DON'T THINK IT WENT PAST 2030. I WAS JUST CURIOUS, IS IT JUST GOING TO KEEP GOING UP? DEPENDS ON WHAT ON WHAT PROJECTS WE DO. SO WILL THE PROJECT BE WILL THIS RATE INCREASE EVER GO DOWN? IS IT IS THERE ANY CHANCE THAT OUR RATES WOULD EVER GO DOWN? I MEAN INFLATION IS ALWAYS GOING UP, SO I'M GUESSING NOT. BUT I WOULDN'T MAKE THAT COMMITMENT. 
          I CAN'T SAY THAT THERE'S NOT A SCENARIO WHERE THEY POSSIBLY COULD IF DEBT FELL OFF, AN ADDITIONAL DEBT HADN'T BEEN TAKEN ON, BUT OPERATE O&M COSTS GO UP EVERY SINGLE YEAR. AND SO THAT FACTORS INTO IT. SO I WOULD IMAGINE, I THINK STATEWIDE, BECAUSE OF THE MANDATES ON WASTEWATER TREATMENT PLANTS AND WASTEWATER TREATMENT THAT'S COMING IS YOU'LL SEE STATEWIDE INCREASES OVER THE NEXT SEVERAL YEARS AS THE MDVS EXPIRE AND AS COMPLIANCE IS MANDATED. BUT THIS PHASE DOESN'T EVEN GET US TO REDUCING OUR PHOSPHORUS LOADING TO. SO THIS IS JUST PHASE ONE. PHASE TWO IS GOING TO COST US WHAT? THIS DOESN'T ADDRESS THE ISSUE. NO. I MEAN, IT'S REALLY JUST PUTTING US IN A BETTER PLACE TO START. YEAH. 
          YEAH. THERE WILL BE ANOTHER. THERE'S A PHASE TWO PROJECT CONTEMPLATED AT THE TIME THAT IT BECOMES NECESSARY AND REQUIRED. YEAH. FUN TIMES. OUR SHIT IS GOING TO GET EXPENSIVE. 
          LITERALLY. IS A QUESTION FOR CITY STAFF IS IS THERE A PLAN TO GIVE THIS PRESENTATION AT COUNCIL AT ALL, OR IS IT LIMITED TO JUST THE PUBLIC WORKS BOARD AT THIS TIME, SINCE IT'S JUST A 60% CHECK IN THE. WHETHER OR NOT WE HAVE THE FULL PRESENTATION, I, I, I SUPPOSE WE CERTAINLY COULD. THE RATE HAS TO GO TO CITY COUNCIL. AND SO THERE WILL BE SOME AMOUNT OF UPDATE PROVIDED TO THE CITY COUNCIL. OKAY. OKAY. WELL, WE'VE SEEN WE'VE SEEN THE RATE BEFORE. THOSE NUMBERS HAVE BEEN IN FRONT OF US BEFORE. YEAH, THEY'RE LARGELY CONSISTENT, BUT WE'LL PROBABLY CONTINUE ANNUALLY TO DO THOSE ANALYSIS WITH OUR FINANCIAL ADVISOR JUST TO MAKE SURE THAT WE'RE WHERE WE NEED TO BE. ALL RIGHT. WHEN I, WHEN I OPENED UP, WHEN I 
          [00:55:09]
OPENED UP THE RESOLUTION TO LOOK AT WHAT THE RATES WERE, IT WASN'T COMING UP FOR ME. DOES IT COME UP FOR OTHER PEOPLE? I MEAN, WE'RE JUST SAYING THE RESOLUTION IS THAT THE RATES ARE GOING TO GO UP VIA NOVEMBER 6TH, 2026 DOCUMENT. BUT I DON'T I DON'T SEE WHAT IT IS. I I'M ONLY ASKING BECAUSE I HAVE TO WRITE A REPORT. IT'S A 21% INCREASE, 1% EACH YEAR. THAT'S FOR 2027. OKAY. YEAH. THE ONLY THE ONLY THING BEING SOUGHT FOR APPROVAL IS THE 2027 RATE. THE. 
          FINANCIAL ADVISERS ANALYSIS WILL KIND OF RUNS THROUGH THE MULTIPLE YEARS. BUT WE YEAH, WE EXPECT INCREASES OVER THE NEXT SEVERAL YEARS AS, AS WE GO TOWARDS THE FIRST PAYMENT ON THE LOAN BEING BEING DUE. SO TYPICALLY WHAT THEY WHAT THEY OFTEN REQUIRE THE, I GUESS THE STANDARD REQUIREMENT IS THAT YOUR RATES ARE CAPABLE OF COVERING THE DEBT WHEN YOU TAKE OUT THE LOAN. IN THIS INSTANCE, WE WE'RE TAKING WHAT THEY CALL A. WE'RE ASKING THE STATE TO TAKE A JUNIOR POSITION, WHICH ALLOWS US TO SPREAD THAT OUT OVER. OVER TIME UNTIL THE PAYMENT IS DUE. SO IT'S AN AVENUE THAT'S AVAILABLE TO US. OTHERWISE, YOU'D BE LOOKING AT LIKE A 60% INCREASE IN 2027. IF WE WEREN'T IF WE WEREN'T TAKING THE AVENUE IN ORDER TO BE ABLE TO COVER THE THE DEBT AT THE TIME, THE FIRST PAYMENT IS DUE. OKAY, SO LOOKING AT THE NUMBERS THAT EVAN SHOWED 2026, HE HAD 53, 20, 27, 63, 20, 28, 79. SO THAT INCREASE FROM 53 TO 63 AMASSED PROBABLY BAD, BUT I HAD ABOUT 19%. BUT WE'RE TALKING 21%. YOU SAID JUST JUST FOR THE REPORT THAT RIGHT TO THE TABLE FIVE ON THE IN THE FMP THE DOCUMENT WITHIN YOUR PACKET. I HAD A HARD TIME FINDING THAT. I'M SORRY, WHERE'S THE FMD? IT'S THE THIRD THE THE THIRD DOCUMENT UNDER THE AGENDA ITEM FOR THE TABLE TABLE TABLE FIVE, YOU SAID TABLE FIVE. 21%, 25%, 20%, 20% ARE THE NUMBERS AT THE TOP. OKAY. THANK YOU. SO DO OUR INDUSTRIAL CUSTOMERS PAY ANY MORE OR IS IT JUST A STRAIGHT RATE INCREASE FOR ALL USERS? THANK YOU. I COULDN'T FIND THAT THERE IS DIFFERENT CHARGES BASED ON. ON CLASS. THE ANALYSIS IS LARGELY DONE ON THE ON THE RESIDENTIAL SIDE TO SHOW WHAT THE IMPACT IS. BUT THERE YES, THERE'S IMPACT ACROSS USER TYPES. AND ONE OF THE REASONS WE'LL CONTINUE TO DO CASH FLOW ANALYZES EVERY YEAR IS BECAUSE AS WE ADD USERS, IT'S POSSIBLE THAT THAT CAN MITIGATE THE INCREASES BECAUSE YOU HAVE A LARGER CUSTOMER BASE. AND SO WE WANT TO MAKE SURE THAT WE ARE CALCULATING IT BASED ON THE MOST UP TO DATE INFORMATION ON WHAT OUR CUSTOMER BASE IS TO ENSURE THAT WE'RE NOT TAKING AN INCREASE THAT WE DON'T NEED. SO AS USERS JOIN, THAT SPREADS THE COST OUT. YEAH. OXIDATION DITCH BEFORE YOU SIT DOWN. YEAH. IS THERE ANYTHING ACTUALLY HAPPENING TO THE FOOTPRINT OF THE OXIDATION DITCH OR IS THE CONCRETE'S FINE? THE CONCRETE'S FINE. THE VOLUME IS FINE. WE'RE JUST ABLE TO TREAT MORE WASTEWATER BY INCREASING THE SIZE OF THE AREAS THAT ADD OXYGEN. WAS IT PHASE TWO THAT HAD ADDED AN OXIDATION DITCH? OKAY. THAT'S JUST CURIOUS. I UNDERSTAND HOW THE OXIDATION DITCH WORKS. I'M JUST CURIOUS IF YOU HAD TO CHANGE IT OR IF 
          [01:00:01]
YOU HAD TO DO ANY. I MEAN, REPAIR WORK. I MEAN, ONCE YOU MODIFY A SYSTEM, SOMETIMES IT MAKES YOU REEVALUATE IT PRETTY EXTENSIVELY. SO I HELP. HOW MUCH IS STRAND BEING PAID FOR? PRELIMINARY AND FINAL DESIGN FOR THIS? A LOT. YEAH, $9 MILLION OR SOMETHING. I, I WOULD HAVE TO LOOK THAT UP. IT WAS I REMEMBER SEEING THE NUMBER, HEARING THE NUMBER AT A PREVIOUS MEETING, I SAID SOMETHING TO THE EFFECT OF, HOLY COW, I'M ENGINEERING, I WOULDN'T YOU'RE LOOKING AT SOMEWHERE BETWEEN 5 TO 15% COST OF TOTAL COST PROJECT. NO, I, I UNDERSTAND AND I GET THAT I WAS, I WAS DISAPPOINTED BY A $1.5 MILLION JUMP, ESPECIALLY FOR LOOKING AT LOOKING AT THE TWO THAT, YOU KNOW, TWO THINGS THAT WERE CITED, I GUESS, OVER EXCAVATION, I CAN I GUESS I CAN UNDERSTAND YOU DON'T KNOW UNTIL YOU ACTUALLY ARE THERE AND DO THE BORE, BUT THE, THE GENERATOR AND THE EFFLUENT PIPES, THAT WOULD SEEM TO BE SOMETHING THAT SHOULD BE ABLE TO BE PLANNED FOR. PRETTY OBVIOUS, AT LEAST THE GENERATOR. 
          YOU, I, I UNDERSTAND, I UNDERSTAND IT'LL COST A LOT. I, I THAT'S A BIG JUMP AND, AND ONE, ONE OF THE TWO PAGES IN PARTICULAR SEEMED LIKE IT COULD HAVE BEEN, IT COULD HAVE BEEN INCLUDED IN THE PRELIMINARY. AND BEFORE BEING INCLUDED IN THE FINAL. I MEAN, HAVE YOU EVER DONE A PROJECT ON YOUR OLD HOUSE, WHOEVER LOOKED AT IT AND BEEN LIKE, I DON'T KNOW, LIKE, THIS IS OKAY, NOT GOING TO WORK FOR. I MEAN, IT'S A PRETTY EXTENSIVE PROJECT THAT REQUIRES A LOT OF REVIEW, OBVIOUSLY A LOT OF DETAILS. I MEAN, IT'S JUST IT SUCKS, BUT THAT'S WHERE WE'RE AT. SO THERE'S A LOT OF UPGRADES IN HERE. AND YOU KNOW. I'M JUST GOING TO ASK THE QUESTION, COULD SOME OF THESE UPGRADES BE STAGED OUT FURTHER INTO THE FUTURE TO SPREAD THE COSTS OUT MORE, TO MAKE IT MORE PALATABLE TO OUR RATEPAYERS? I THINK WE'RE PROBABLY BEYOND THAT POINT. YEAH, YEAH, WE'RE LOCKED IN AS AN EXAMPLE, CHANGING FROM CHLORINE TO UV. 
          YOU KNOW THAT THAT'S A SYSTEM THAT COULD, YOU KNOW, BUT MAYBE IT TIES INTO THE REST OF THE SYSTEM AND IT'S MORE COST EFFECTIVE TO DO IT ALL AT ONCE. IT IS TYPICALLY MORE COST EFFECTIVE TO DO MORE OF THIS. AND THAT'S GENERALLY TRUE. I UNDERSTAND. SO THE CITY IS ALSO APPLYING FOR A 29 YEAR LOAN, PAYING IT OFF OVER A LONGER PERIOD THAN THE TYPICAL 20 YEAR LOAN AS WELL. SO THAT PRETTY MUCH ANSWERS MY QUESTION. THANKS. THE OTHER THING I'LL SAY ABOUT THE NUMBERS IS THE THE 28.6 MILLION IS IN $2,025. THE 30.1 MILLION IS IN $2,027. 
          I THINK OUR ECONOMY FOR THAT. YEAH. ALL RIGHT. ANY FURTHER QUESTIONS ON THE 60% DESIGN. 
          [9. Discussion/Recommendation: Sanitary Sewer User Rate Proposal.]
ALL RIGHT. THANK YOU EVAN. AND WE'LL MOVE ON NEXT TO NUMBER NINE DISCUSSION RECOMMENDATION ON SANITARY SEWER USER RATE PROPOSAL. JUST TO CLARIFY, ONE ITEM I SAID BEFORE IS THE RATE INCREASES IS BASED OFF OF METER SIZE. AND SO THAT'S HOW THAT IS DETERMINED IN THE IN THE RATES. 
          SO THIS THE RESOLUTION THAT WAS BEFORE YOU, IF IT WERE TO BE APPROVED BY CITY COUNCIL, WOULD RESULT IN THE THE 21% INCREASE EFFECTIVE JANUARY 1ST, JANUARY 1ST OF 2027. ANYBODY WISH TO MAKE A MOTION CAN MAKE A MOTION RECOMMENDING THE CITY COUNCIL FOR ADOPTION. THE RESOLUTION DECLARING OFFICIAL 2027 UTILITIES BUDGET. I BELIEVE THAT'S THE CORRECT ONE. YOU'RE ONE AHEAD. OH, SORRY. RESOLUTION APPROVING A SANITARY SEWER USER CHARGE SYSTEM UPDATE 
          [01:05:03]
IS THE ONE YOU'RE LOOKING FOR. WELL, WE GOT TWO. OKAY. ALL RIGHT. SORRY, I APOLOGIZE. 
          RESCIND MY MOTION. I'LL MAKE ANOTHER MOTION FOR THE CITY COUNCIL TO ADOPT TO RECOMMEND FOR ADOPTION APPROVING A SANITARY SEWER USER CHARGE SYSTEM UPDATE. A SECOND. ALL RIGHT. WE HAVE A MOTION. AND SECOND, ON THE SEWER SANITARY SEWER SYSTEM CHARGE UPDATE. 
          FURTHER DISCUSSION? SEEING NONE. ROLL CALL PLEASE. MR. I MISS WAGNER, I MISS DRYER I MR. SMITH, I MR. PICARD, I MISS LAWRENCE I MOTION PASSES SIX ZERO. ALL RIGHT. NEXT WE HAVE 
          [10. Discussion/Recommendation: 2027 Utilities Budget - Wastewater, Water, Electric.]
NUMBER TEN DISCUSSION RECOMMENDATION ON 2027 UTILITIES, BUDGET, WASTEWATER, WATER AND ELECTRIC. THE CITY COUNCIL APPROVED THE CITY GOVERNMENT BUDGET AT ITS LAST MEETING. SO THIS. THE. THIS. THE NEXT APPROVAL ON THE DOCKET IS FOR THE UTILITY BUDGET TO BE APPROVED. THE SEWER BUDGET DOES INCLUDE THE. AN INCREASE IN ANTICIPATED INCREASE IN REVENUE BASED OFF OF THE RATE INCREASE THAT WE'RE ANTICIPATING. THE WATER AND ELECTRIC BUDGETS ARE NOT SHOWING REVENUE INCREASES WITHIN THE BUDGET. THEY ARE SHOWING SOME. THEY ARE SHOWING SOME REVENUE INCREASES BASED ON NET NEW CONSTRUCTION, NEW USERS, BUT ARE NOT NOT REFLECTING IF A RATE, A RATE INCREASE WERE TO BE APPROVED, WE DON'T. IT MAY BE UNTIL SEPTEMBER OR LATER WHEN THE PSC FINALLY APPROVES THE ELECTRIC RATE CASE THAT WE'RE PLANNING TO SUBMIT, WE DO ANTICIPATE BEING ELIGIBLE FOR A SIMPLIFIED WATER INCREASE. WE'VE BEEN INELIGIBLE FOR THE PAST TWO YEARS. WE ANTICIPATE BEING ELIGIBLE, BUT WE HAVE NOT REFLECTED THAT WITHIN THE REVENUES IN THE BUDGET, AS WE HAVE BEEN 0.1% ON A RATE OF RETURN AWAY FROM BEING ELIGIBLE FOR THE SIMPLIFIED RATE CASE EACH OF THE PAST TWO YEARS. SO WE'RE WE ARE ANTICIPATING, BUT NOT NOT COUNTING ON IT. SO STAFF RECOMMENDS APPROVAL OF THE BUDGET, AND THEN IT WILL BE FORWARDED ON TO CITY COUNCIL FOR ADOPTION AT THE MEETING NEXT WEEK. I'LL MAKE MY MOTION AGAIN THAT THE CITY THAT THE BOARD RECOMMENDS FOR ADOPTION. THE RESOLUTION DECLARING OFFICIAL 2027 UTILITIES BUDGET. MR. COOTS WILL SECOND. ALL RIGHT. WE HAVE A MOTION. AND SECOND ON THE 2027 UTILITIES BUDGETS WASTEWATER, WATER AND ELECTRIC. ANY FURTHER DISCUSSION? WE NEVER HAVE ANY FURTHER DISCUSSION, DO WE? BUT IT'S PART OF THE ROBERT'S RULES. 
          SO. ALL RIGHT. ROLL CALL PLEASE. MISS WAGNER, I MISS TRAYER, I MR. SMITH, I MR. PICARD, I MISS LAWRENCE, I MR. COATS I MOTION PASSED SIX ZERO. ALL RIGHT. ITEM 11 DISCUSSION 
          [11. Discussion/Recommendation: Yard Waste Disposal Site Non-resident Access.]
RECOMMENDATION ON YARD WASTE DISPOSAL SITE. NON RESIDENT ACCESS. WE HAVE A STAFF REPORT. 
          IF THERE'S A STAFF REPORT INCLUDED IN YOUR PACKET. IF YOU HAVE QUESTIONS OR HAPPY TO ANSWER YOU FOR THEM. WE TRIED TO LAY OUT THE OPERATIONS THAT GO INTO THE THE SITE AS WELL AS THE COSTS ASSOCIATED WITH PROVIDING THE SERVICE. WE'RE ANTICIPATING BEING ABLE TO ROLL OUT THE THE ACCESS TO THE SITE SO THAT THE GATE WILL BE WILL DEFAULT TO BEING CLOSED UNTIL SOMEBODY COMES TO DROP IT OFF, AND THEN THEY WILL BE ABLE TO TO BADGE IN AND OPEN IT UP. 
          CURRENTLY THAT'S AVAILABLE TO CITY RESIDENTS ONLY. THERE HAS BEEN INTEREST FROM NONRESIDENTS IN PARTICIPATING IN IT. SO THIS INCLUDES THAT PROPOSAL. WE MAY ALSO, PRIOR TO CITY COUNCIL ACTION OR IN CONJUNCTION WITH CITY COUNCIL ACTION, MAY NEED TO ADOPT AN AMENDMENT TO OUR ORDINANCES ON IT, WHICH. BECAUSE IT INDICATES THAT IT'S FOR RESIDENTS ONLY. SO WE'LL BE TAKING A LOOK AT THAT. BUT THIS MEMO ROLLS OUT, LAYS OUT WHAT THAT PROJECT WOULD LOOK FOR. IT DOES RECOMMEND ADOPTION WITH A REVIEW BY THE PUBLIC WORKS BOARD IN OR AROUND. THAT SHOULD SAY DECEMBER OF 2027. I APOLOGIZE TO EVALUATE HOW THE HOW IT HOW THAT ACCESS WENT AND WHETHER THE THE REVENUE THAT WE'RE RECEIVING IS COVERING ANY ADDITIONAL COSTS THAT WE'VE 
          [01:10:05]
EXPERIENCED AS FAR AS INCREASED HAULING FEES OR INCREASED TIME SPENT AND THINGS OF THAT NATURE TO ENSURE THAT IT'S, IT'S, IT'S NOT DETRACTING FROM THE SERVICE AND THE PLANS FOR IMPLEMENTING THE GATE ACCESS CONTROL IS SPRINGTIME OR EARLY 2027. THIS FALL SLASH WINTER, WE'LL START MAKING ANNOUNCEMENTS OVER HOW YOU CAN HOW YOU CAN RECEIVE ACCESS TO IT, AND THEN TRY AND GET READY FOR PEOPLE'S SPRING CLOSURE, RIGHT? YEAH. SO RESIDENTS CAN HAVE TO REQUEST A KEY CARD. THEY'LL HAVE TO COME IN AND OBTAIN ONE. YES, THAT'S A PAIN. SO WHEN YOU DON'T KNOW ABOUT IT AND YOU SHOW UP THERE WITH A TRUCK FULL OF STUFF, YOU'RE JUST KIND OF OUT OF LUCK. 
          YEAH. WHAT WAS THE WHAT WAS THE REASONING FOR THAT? DID WE EVER DO A SURVEY THAT SAID NONRESIDENTS ARE COSTING US THIS MUCH MONEY A YEAR? WE. YEAH. THERE WE GO THROUGH THAT. 
          YEAH. OKAY. YEAH. ONE OF THE REASONS IT WAS MOVED WAS BECAUSE THE PREVIOUS SITE THAT IT WAS ON WOULD BECOME SO OVERFILLED THAT IT WOULD SPILL INTO THE ROADWAY. WE ALSO HAD HAVE HAD ISSUES WITH WASHING MACHINES, SHINGLES, GARBAGE, OTHER THINGS BEING BEING DROPPED AT IT. THERE'S BEEN ISSUES WITH CONTRACTORS BRINGING LARGE LOADS OF MATERIAL TO IT. AND SO ONE OF IT WAS TO MOVE IT TO A SITE THAT WAS MORE ACCESSIBLE AND EASY TO MANEUVER, BUT ALSO MORE CAPABLE OF ACCESS CONTROL TO ENSURE THAT WE COULD CONTINUE PROVIDING THIS SERVICE BECAUSE THE COST, THE ADDITIONAL COSTS WE INCUR MAKES IT DIFFICULT TO CONTINUE OPERATING THE SERVICE BECAUSE WE HAVE TO PAY TO PROPERLY DISPOSE OF THINGS THAT GET DROPPED THERE THAT AREN'T SUPPOSED TO BE THERE. AND SO THE IT'S NOT ONLY THE ADDITIONAL TIME AND ADDITIONAL HAULING OF THIS MATERIAL, WE HAVE TO DISPOSE OF IT PROPERLY IN ACCORDANCE WITH ANY DNR REGULATIONS, YOU KNOW, THINGS OF THAT NATURE. SO, YES, WE WERE INCURRING ADDITIONAL COSTS FROM WHAT WE BELIEVED TO BE UNAUTHORIZED USAGE OF IT. AND SO THAT IS WHAT PRECIPITATED LOOKING AT A MORE CONTROLLED SYSTEM. OKAY. DO YOU HAVE ANY IDEA OF THE AMOUNT OF RESIDENTS THAT WOULD USE IT OR PAY FOR THAT KEY CARD VERSUS NONRESIDENTS, RESIDENTS OTHER THAN OTHER THAN PERHAPS A WE'RE NOT ANTICIPATING A RESIDENT FEE FOR FOR USE OF THIS SYSTEM. THIS IS FOR TOWN O TOWN NON-CITY RESIDENTS. OKAY. 
          GOTCHA. AND IT STILL WON'T. YOU KNOW, THE IDEA IS STILL NO CONTRACTORS, CORRECT? CORRECT. 
          YEAH. WE HAVEN'T COME UP WITH, YOU KNOW, WE COULD EXPLORE A SYSTEM THAT WOULD ALLOW FOR IT, BUT IT WOULD PROBABLY BE A DIFFERENT RATE. AND ENSURING THAT WE'RE COVERING OUR COSTS FOR, FOR SOMETHING LIKE THAT, THE THE GOAL IS NOT TO WE DON'T WANT TO BE IN A POSITION WHERE WE'RE SUBSIDIZING PRIVATE OPERATIONS, WHERE SOMEBODY OFFERS A, YOU KNOW, THEY'RE OFFERING A LOWER RATE BECAUSE THEY KNOW THAT THEY CAN DUMP IT OFF AT OUR YARD WASTE SITE FOR FREE INSTEAD OF INCORPORATING INTO THEIR COSTS THE COST OF DISPOSAL. YES, YES, THAT MAKES SENSE. AND THEN SO WHAT I WOULD JUST TO DESCRIBE IT, I WOULD SAY THAT TOWN RESIDENTS THAT WERE INTERESTED IN PARTICIPATING WOULD GO TO THE CITY BUILDING, PAY A FEE, GET A KEY CARD OR SOME SOMETHING LIKE THAT TO BE ABLE TO ACCESS THE GATE. THAT'S CORRECT. THAT'S A GOOD SUMMARY. AND THEN THAT WOULD BE REVIEWED AT THE END OF THE YEAR TO DETERMINE WAS THERE SIGNIFICANT INCREASE, NOT INCREASE, YOU KNOW, FOR COSTS AND STUFF LIKE THAT. AND THE FEE WOULD BE RE REEVALUATED. OKAY. RIGHT. YEAH. AND AN ANNUAL SEASONAL FEE ESSENTIALLY FOR THE IT'S CLOSED FOR A FEW MONTHS IN THE WINTER. BUT YEAH, AN ANNUAL NONRESIDENT FEE TO MAINTAIN THAT KEY CARD. I'D LIKE TO MAKE A MOTION TO RECOMMEND THE CITY COUNCIL ADOPT THE TOWN OF LAKE MILLS RESIDENT YARD WASTE DISPOSAL SEASONAL ACCESS PROGRAM AT A RATE OF $200 PER HOUSEHOLD, WITH A REVIEW BY THE PUBLIC WORKS BOARD IN OR AROUND DECEMBER 2027 TO EVALUATE THE VIABILITY OF THE PROGRAM. THAT WAS BEAUTIFUL. ANYBODY WISH TO MAKE A SECOND TO THAT MOTION? I'LL SECOND. LEAN SECONDS. FURTHER DISCUSSION? YEAH, A COUPLE OF THINGS. FIRST, ONE POINT OF CLARIFICATION. I DIDN'T HEAR AS YOU WERE READING THAT. DID YOU SAY 27 OR 28? IT'S 2027. OKAY. BECAUSE THE WRITTEN IT, IT'S WRITTEN AS 28, RIGHT? I KNOW IT WAS A TYPO. OKAY. I THAT'S WHY I WANTED TO CLARIFY. I JUST WANT TO MAKE 
          [01:15:02]
SURE I THOUGHT THE. THE, THE GENESIS OF THIS WAS THIS INDIVIDUAL PEOPLE ASKING OR WAS THIS THE TOWNSHIP COMING TO THE CITY AS, AS AN ENTITY? I MEET REGULARLY WITH THE TOWN CHAIR. 
          WE HAD TALKED ABOUT WHETHER OR NOT THE IT WOULD BE. THE TOWN WANTED TO PROVIDE A PAYMENT TO THE CITY IN ORDER TO PROVIDE FULL ACCESS TO EVERY RESIDENT IN THE. IN THE TOWN OF LAKE MILLS THEY HAVE HAD. THEY HAVE HAD INDIVIDUALS DISCUSS WITH THE TOWN BOARD ABOUT ACCESS. IT HAS. IT HAS COME UP. I CAN'T SAY THAT, YOU KNOW, I'VE RECEIVED OR. BRIAN HAS RECEIVED DOZENS OF PHONE CALLS ON THIS. BUT LARGELY IT'S COME TO ME THROUGH. THE TOWN CHAIR HAS INDICATED THAT THERE IS AN INTEREST AND THAT THEY WOULD WELCOME A PROGRAM, BUT THAT THEIR PREFERENCE WAS FOR KIND OF THIS THE INDIVIDUAL TREATMENT OF SOMEBODY COMING IN AND PAYING FOR INDIVIDUAL ACCESS. OKAY. IT WAS ALSO PART OF THE ROCK LAKE IMPROVEMENT ASSOCIATION RECOMMENDATION THAT THE CITY AND TOWN WORK TOGETHER. IT WAS ALSO PART OF THEIR RECOMMENDATION TO MOVE THE YARD WASTE AWAY FROM ROCK CREEK, BECAUSE THE PHOSPHORUS FROM THE YARD WASTE WAS RUNNING INTO THE CREEK. SO JUST SOME BACKGROUND. THE. THE YARD WASTE SITE HAS MOVED REGARDLESS OF IF THIS IS APPROVED OR NOT. I KNOW I JUST WAS GIVING YOU SOME BACKGROUND ON BECAUSE YOU WERE ASKING ABOUT IT MOVING BEFORE AND I JUST I JUST SAID THAT IT HAD BEEN ALSO RECOMMENDED BY ROCK LAKE IMPROVEMENT ASSOCIATION. THAT'S ALL. OKAY. THE $200 AMOUNT, WAS THERE ANY CALCULATION THAT WENT IN TO THAT AT ALL, OR WAS THAT. I KNOW IT WAS JUST A BEST GUESS TO SOME DEGREE, BUT I'M CURIOUS IF YOU KNOW HOW GOOD OF A GUESS WE THINK THAT IS. GUARANTEED THAT NOBODY WILL PURCHASE. YEAH, IT WAS, IT WAS KIND OF CALCULATED BASED OFF OF THE OPERATING HOURS THAT IT TAKES FOR IT. AND THEN ALSO KIND OF FACTORING IN THE $45 DUMP DUMP LOAD. SO THAT WAS KIND OF THE, THE COST CENTER THAT WE WERE LOOKING AT. AND TO CELEBRATE THAT WOULD RECOVER OR, YOU KNOW, EXCEED THOSE COSTS, DEPENDING ON HOW MUCH UPTAKE WE HAD. OKAY. I KIND OF LOOKED AT IT AS, YOU KNOW, THERE'S MAYBE 3000 HOUSEHOLDS IN THE CITY, MAYBE, YOU KNOW, MAYBE A FOURTH OF THOSE USE THE SITE. WHEREAS EVERY SINGLE PERSON THAT PAYS FOR, FOR IT TO USE IT FROM THE TOWN OR NON-CITY RESIDENT, THEY'RE GOING TO BE USING THE SITE AND PROBABLY PRETTY HEAVILY. SO TO ME, IF YOU'RE SPENDING $200 ON IT, YOU'RE GOING TO USE THE DANG THING. THAT'S A LOT. YEAH, YEAH, YEAH. 
          IF YOU'RE GOING TO PAY, YOU KNOW, IT DOESN'T REALLY MATTER WHAT AMOUNT. IF YOU'RE IF YOU PAY, YOU'RE GOING TO USE IT. YEAH, YEAH, YEAH. IT IS AN EXPENSIVE SERVICE. I MEAN, WHEN YOU FACTOR IN ALL THE COSTS THAT GO INTO IT, AND THEN WHEN YOU ALSO CONSIDER FROM THE CITY'S PERSPECTIVE, AS FAR AS CURBSIDE PICKUP AND LEAF PICKUP AND THINGS LIKE THAT, AS FAR AS COLLECTION AND DISPOSAL OF, OF MATERIALS IS, IS A SIGNIFICANT SERVICE COMMITMENT AND BUDGETARY EXPENSE FROM A USE OF HUMAN CAPITAL AND EQUIPMENT. ALL RIGHT. ANY FURTHER DISCUSSION? WE ACTUALLY HAD SOME DISCUSSION THIS TIME. SEE. ALL RIGHT. SEEING NONE. ROLL CALL PLEASE. MR. SMITH. AYE. MR. PICARD. HI. MISS LAWRENCE, I MR. COATS, I MISS WAGNER, I 
          [12. Recommendations for Future Agendas.]
MOTION PASSED FIVE ZERO. RIGHT. THAT LEAVES US TO NUMBER 12 RECOMMENDATIONS FOR FUTURE AGENDAS. SO LET'S SEE, ARE WE GOING TO HAVE A DECEMBER MEETING? IF IT'S NECESSARY? PERHAPS NOT. IS IT NECESSARY YET? IT'S NOT NECESSARY YET. OKAY. WE JUST GOT A LOT OF STUFF DONE. YEAH, IT LOOK YEAH, IT'S NOT TOO BAD ON THE TIME, EVEN IN MY OPINION. ALSO, THANK YOU FOR THE CROSSWALK. IT LOOKS REALLY NICE. ALL OF MY NEIGHBORS HAVE BEEN LOOKING AT 
          [01:20:03]
IT AND ARE LIKE, OH, THIS IS PRETTY APOLOGIES. WE HAD TO WAIT SO LONG TO GET IT BACK IN THERE. BUT NO, YOU'RE WELCOME. THE SIGNS ARE HELPFUL THOUGH. AT THE TOP OF THE HILL YOU CAN REALLY SEE IT FROM THE BOTTOM. EXCELLENT. ALL RIGHT, I THINK WE'RE DONE. I'LL DECLARE THE MEETING.
* This transcript was compiled from uncorrected Closed Captioning.