The Docket · Government Meeting · DKT-2026-000278

On the agenda: Brainerdmn Public Utilities Commission — data center (Jul 28)

Past ⚠ Agenda Watch Brainerd, Minnesota · Tuesday, July 28, 2026 — 2 months ago

About this record

The published agenda for this July 28 meeting contains: "data center". The meeting has passed; the record and its outcome live here permanently.

WhenTuesday, July 28, 2026
Check the agenda document for the meeting time.

WhereBrainerd, Minnesota

BodyPublic Utilities Commission

Money$190,403.25 was at stake

On the record“data center”

The agenda, word for word

Government public record — the full text of the published document, archived August 2, 2026. Gold highlighting of key terms is ours, not the original’s. Read the original document ↗

97 pages · scroll to read

Page 1 of 97

PUBLIC UTILITIES COMMISSION AGENDA
City of Brainerd, Minnesota
City Hall, 501 Laurel Street, Council Chambers
Tuesday, July 28, 2026 @ 9:00 AM
The public is invited to attend these meetings in person
Dial in by phone
+1 469-250-2695
Meeting Access Code:
Per MN Statutes 13D.02 Subd 1 Commission Members may participate by interactive technology.
Meetings are broadcast on CTC ch 8, Charter ch 181, YouTube, AppleTV, Roku, and Amazon FireTV
1.

Call To Order

Roll Call
___ M. Bayliss ___C. Jay ___D. Wussow___M. Angland

Pledge of Allegiance

Approval Of Agenda - Voice Vote

Consent Calendar
NOTICE TO PUBLIC - all matters listed are considered routine by the Commission and will all be
enacted by one (1) motion. There will be no separate discussion of these items unless good cause
is shown prior to the time the Commission votes on the motion to be ADOPTED BY ROLL CALL
A. Approval of Bills
(Available upon request in the Finance Manager's Office)
B.

Approval of Minutes

Out of State Travel

D. Recommend Surplus Items for Auction
6.

Presentations
A. Tower Award - Jana Pernula
B.

Waterworth Rate Study Tool

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Page 2 of 97

Public Forum
Time allocated for citizens to bring matters not on the agenda to the attention of the Commission Time limits may be imposed

Unfinished Business
A. Unfinished Business
(See attached separate memo regarding updates on unfinished business)
B.

2026 Comprehensive Policy Review Update
1.

BPU_POL_2021-01 Opt Out Meter Reading Fee

BPU_POL_2008-15 Non- Sufficient Funds Checks and ACH Payments

New Business
A. Approve Fee Amendment with HR Green - Main Lift Station Reconstruction Project

10. Staff Reports
(Verbal: Any Updates since Packet)
A. City Administrator Report
B.

HR Director Report

Public Works Director Report

D. Electric Director Report
E.

Water/Wastewater Manager Report

Finance Manager Report

11. Commission Member/Council Liaison Reports
12. Adjourn

Visit Brainerd Public Utilities website at www.bpu.org

MISSION
"The mission of Brainerd Public Utilities is to provide safe, reliable, environmentally friendly electric,
water and sewer services to our customers at the lowest reasonable cost."

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Page 3 of 97

The regular meeting of the Brainerd Public Utilities Commission was held at 9:00 AM on June 30, 2026.
Commission President Angland called the meeting to order at 9:00 AM.
Commission Roll Call
President Mike Angland – Present
Misty Bayliss – Present

Vice-President Dolly Wussow – Present
Cory Jay – Present

Utility Staff Present
Public Works Director
Electric Director
Finance Manager
Water/Wastewater Manager
Business Office Supervisor
Business Office Supervisor
Recording Secretary
Waste Water Treatment intern

Paul Sandy
Trent Hawkinson
Danny Loch
Charlie Gammon
Jana Pernula
Heidi Gandsey
Becky Ridlon
Kaylan Peterson

Others in Attendance
City Council Liaison
City Administrator
HR Director
Bolton & Menk
Bolton & Menk
Northland Arboretum
CliftonLarsonAllen

Jeff Czeczok
Nick Broyles
Brittney Kummet
Morgan Salo, PE
Bryan Drown
Trevor Pumnea
Eric Smedsrud

Commissioner Angland opened the meeting with the Pledge of Allegiance.
Approval of Agenda Items
Motion by Commissioner Bayliss and seconded by Commissioner Jay to approve the agenda. There was
a unanimous vote in favor of the motion. Motion carried.
Approval of Consent Items
Motion by Commissioner Wussow and seconded by Commissioner Bayliss to approve the minutes from
May 26th, 2026, current month’s bills, and to approve listing of Surplus Auction Items. There was a
unanimous roll call vote in favor of the motion. Motion carried.

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BRAINERD PUBLIC UTILITIES COMMISSION MEETING
May 26, 2026
2025 Audit Presentation
Eric Smedsrud CliftonLarsonAllen Presented the 2025 audit results.
Wussow emphasized the December 2024 water rate increase, noting that it has strengthened the financial
performance of the water utility by improving operating margins and supporting the cost of maintaining
services and infrastructure. The importance of reviewing utility rates annually.
Public Forum
None
Unfinished Business
Memo -See board packet for updates.
Wussow asked whether a formal plan is in place to achieve the utility's carbon-free 2040 goal.
Hawkinson responded that no formal documented plan currently exists, but the utility continues to
make progress by pursuing opportunities as they arise. Wussow also asked about the status of an EV
charging policy. Hawkinson stated that no formal policy has been adopted. Although the Strategic Plan
identified completion in 2026, only the discussion phase was completed due to limited Commission
interest. Staff remain prepared to develop a policy if directed by the Commission.
Czeczok requested a cost-benefit analysis of the utility's generation assets, including hydro operations,
to better understand operating costs, revenues, and overall financial performance while recognizing the
value of the assets in supporting carbon-free energy goals. Hawkinson explained that the costeffectiveness of generation assets depends on the comparison methodology, such as power purchase
agreements, wholesale market prices, or blended rates. He noted that achieving the carbon-free 2040
goal will increase costs compared to current coal-based power and requested Commission guidance on
the preferred methodology for future financial analyses of renewable energy projects. Loch reported
that staff are awaiting bonding information from Bond Counsel after the project did not receive state
legislative funding. The bonding analysis will estimate the cost of financing the project independently,
with results expected by the next Commission meeting. The requested cost-benefit analysis will also be
presented at that time.
Czeczok requested a cost-benefit analysis of the hydro operation, asking for a clear report on its
expenses, revenue, and overall financial performance. While recognizing its carbon-neutral benefits, he
questioned whether the facility generates enough revenue to justify its operating and equipment costs.
Loch explained that all existing generators remain operational when river flow permits and that none
are permanently idle. The proposal would install a new generator in Pit 6, where no unit currently exists,
using newer technology to improve energy production, particularly during lower river flows. He noted
that the existing generators have been in service for more than 100 years and that staff are evaluating
the project with an acceptable target payback period of approximately 20 to 25 years, while projects
with longer payback periods would require additional review.

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BRAINERD PUBLIC UTILITIES COMMISSION MEETING
May 26, 2026

Change order 1 – 2026 Galvanized Water Service Line Replacement Project Number 2 - see
board packet for report.
Public Utilities Director Sandy presented.
Commissioner Jay asked a question about why an additional mobilization fee appeared, noting that there
should have already been a mobilization fee included in the original agreement. It was clarified that this
issue had previously been discussed with DeChantal during the change order negotiations. Brian Drown
with Bolton and Menk responded explaining that the contractor's mobilization costs extend beyond
transporting equipment. As a local contractor working on smaller, individual properties, the contractor
incurs coordination, bonding, administrative, and other incidental costs for each location. Drown
indicated that each property should be treated as a separate small project, with those individual costs
collectively contributing to the overall project cost.
Motion by Commissioner Wussow and seconded by Commissioner Bayliss to Approve Change order No.
1 for the 2026 Galvanized Water Service Line Replacement Project No. 2 with DeChantal Excavating in
the amount of $190,403.25. There was a unanimous vote in favor of the motion. Motion Carried.
2026 Backwash Reclaim Tank Construction Manager at Risk (CMAR) Project Pre-qualification and Bidding
Phases and Construction Authorization- see board packet for report.
Public Utilities Director Sandy presented.
Sandy stated this item is for information only at this time, no action needed.
The commission expressed enthusiasm for the construction approach, noting the benefit of obtaining bids
from specialized contractors rather than relying on a single general contractor with subcontractor
markups. The discussion then focused on the Guaranteed Maximum Price (GMP), with Loch clarifying that
the project's maximum cost is set at $5.3 million. The GMP remains fixed even if contingency funds are
fully used, unless the owner directs additional work through approved change orders. Contractor
contingencies are intended to cover the contractor's risk for unforeseen costs or bidding omissions, while
owner-directed changes may require use of the owner's contingency or an increase to the contract
amount through a change order. Questions were also raised about potential design omissions,
with Morgan Salo from Bolton and Menk explaining that those issues would be addressed if they arise but
are not currently a concern.
Approve Amended BPU_POL_2005-07 Tenant/Landlord Responsibility for Vacated Rentals.
Finance Manager Loch presented.
Discussion included: Wussow asked about notification procedures when tenant accounts transfer to
property owners after vacancy. Loch explained that a notice letter is sent to inform landlords, but the
account automatically transfers under existing policy and statute regardless of whether the letter is
received. Concerns were raised about whether this places responsibility on the utility for ensuring
delivery, and staff clarified that the property owner remains responsible for charges. Commission
concluded that the policy as presented is acceptable, with staff recommending approval and ongoing
monitoring.

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BRAINERD PUBLIC UTILITIES COMMISSION MEETING
May 26, 2026
Motion by Commissioner Wussow and seconded by Commissioner Jay to Approve Amended
Bpu_POL_2003-07 Tenant/Landlord Responsibility for Vacated Rentals. There was a unanimous vote in
favor of the motion. Motion carried.
Approve Amended BPU_POL_2005-09 Customer Deposits.
Finance Manager Loch presented.
Motion by Commissioner Wussow and seconded by Commissioner Bayliss to Approve Amended
Bpu_POL_2003-09 Customer Deposits. There was a unanimous vote in favor of the motion. Motion
carried.
Approve Amended BPU_POL_2005-06 Metering of Multi Unit Dwellings for Rentals.
Finance Manager Loch presented.
Wussow asked a question regarding item number four in the policy statement, specifically about the
requirement that the property be inspected by BPU personnel before an account is placed in a tenant’s
name. It was confirmed that staff do indeed conduct on-site inspections of the property. A follow-up
question addressed where the inspection reports are stored and whether they are maintained by BPU or
the city’s rental department. It was explained that the reports are retained within BPU systems,
primarily through a mapping system used to track properties.
Motion by Commissioner Wussow and seconded by Commissioner Jay to Approve Amended
Bpu_POL_2003-06 Metering of Multi Unit Dwellings for Rentals. There was a unanimous vote in favor
of the motion. Motion carried.
New Business
Legal Services with Flaherty and Hood for Cursory Review of Sewer Use and capacity Agreement between
City of Brainerd and City of Baxter. See board packet for agenda request.
Public Utilities Director Sandy presented.
Wussow expressed appreciation for the involvement of a third party in helping initiate the process but
emphasized the importance of maintaining transparency and avoiding unexpected developments that
could result in disputes or legal disagreements. They stated their expectation that the group sessions
would proceed openly and without surprises.
Staff reported ongoing communication with the City of Baxter, including email correspondence outlining
the intent to bring the matter before the Commission. The expectation is that the city's attorney will
review the agreement, with legal counsel for both communities examining the document and providing
any necessary comments or revisions.
Wussow also expressed appreciation for the continued open communication between the two cities and
the collaborative approach to the joint wastewater project. They commended the proactive efforts and
strong representation through the Joint Wastewater Management Board meetings and looked forward
to the facility planning findings, particularly the projected wastewater usage for both communities.

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BRAINERD PUBLIC UTILITIES COMMISSION MEETING
May 26, 2026
Sandy explained that Bolton & Menk, serving as the technical advisor under the wastewater facility
planning contract, will lead to revisions to the agreement using information developed through the
facility plan. The revised agreement will then be reviewed by legal counsel for both cities and the Joint
Wastewater Management Board as the process moves forward.
Sandy further noted that additional legal work will be required through the end of the year, with each
community now responsible for its own legal expenses rather than following the previous onethird/two-thirds cost-sharing arrangement. Existing planning funds have already been allocated through
Bolton & Menk, while additional legal expenses are anticipated in the 2027 budget. Legal services from
Flaherty & Hood were estimated at approximately ten hours.
Motion by Commissioner Wussow and seconded by Commissioner Bayliss to Authorize the engagement
of Flaherty and Hood, P.A. for professional legal services related to the cursory review of the existing
Sewer Use and Capacity Agreement between the Cities of Brainerd and Baxter and the preparation of a
written legal memorandum summarizing findings and recommended updates for a cost not to exceed
$3,500.00. There was a unanimous vote in favor of the motion. Motion Carried.
Discuss crow Wing Power Infrastructure/Service Territory Boundaries. See board packet for agenda
request.
Operation Manager Hawkinson presented.
The discussion covered a proposed service territory realignment that would not result in a net loss of
customers but would adjust boundaries between utilities, including along the Highway 371 corridor, to
better align service responsibility. Hawkinson noted that administrative costs may be negotiated as part
of the agreement, and acknowledged that long-term infrastructure cost recovery is limited due to long
asset lifespans, making extended replacement assumptions impractical.
While there was hesitation about giving up any service area due to potential future revenue loss from
undeveloped lots, it was noted by Hawkinson that the current fragmented “island” service areas are
financially inefficient. The proposed boundary cleanup would simplify and clarify service lines, reduce
overlap, and improve operational efficiency such as outage response and emergency coordination, with
staff emphasizing overall benefits despite the difficult trade-offs involved.
Motion by Commissioner Wussow and seconded by Commissioner Bayliss to Approve proposed service
territory boundary adjustments, continue coordination with Crow Wing Power to finalize a mutually
acceptable agreement, and authorize submission of a joint application to the Minnesota Public Utilities
Commission for approval.
Commissioner Jay requested to amend the motion to ensure the adjustments do not exceed the proposed
service territory boundaries.
Amended Motion by Commissioner Wussow and seconded by Commissioner Bayliss to Approve
proposed service territory boundary adjustments not exceed the proposed service territory boundaries,
continue coordination with Crow Wing Power to finalize a mutually acceptable agreement, and
authorize submission of a joint application to the Minnesota Public Utilities Commission for approval.
There was a unanimous vote in favor of the motion. Motion Carried.
5

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Page 8 of 97

BRAINERD PUBLIC UTILITIES COMMISSION MEETING
May 26, 2026

Discuss Northland Arboretum Billing Related to BPU_POL_2005-07. See board packet for agenda request.
Operation Manager Hawkinson presented.
Commissioners discussed a request to make an exception to existing policy 2005-07 but agreed that doing
so would be unfair to other ratepayers and could set an undesirable precedent. While acknowledging the
value of the project and the significant contributions made by the applicant, commissioners concluded
that too many questions remain to justify an exception at this time. Instead, they supported working with
staff to explore alternative solutions, including gathering input from contractors and other stakeholders,
with the goal of identifying a fair and practical path forward without changing current policy.
Staff Reports
City Administrator Report -see board packet for report.
HR Director’s Report – see board packet for written report.
Wussow requested that future personnel reports more clearly distinguish new hires from internal
promotions, particularly for City, HR, and Airport positions. Kummet agreed to separate or identify the
categories more clearly in future reports.
Public Works Director Report – see board packet for report.
Wussow asked whether costs related to contaminated soils on the Highway 210 water main project would
be borne by BPU and whether the source of the contamination had been identified. Sandy explained that
the issue requires switching water main materials in limited areas where petroleum-related contaminants
could affect PVC pipe, resulting in an upcoming change order. While contamination along the corridor
originates from a variety of historic sources, staff noted that only two or three locations currently require
material changes, with costs and quantities still being finalized.
Additionally, Wussow questioned whether the City Council should reconsider allowing future
development on the Roberts property, noting that it was purchased for wellhead protection and that
the development contingency prevented pursuit of grant funding. Loch explained that it is now too late
to seek those grants and that any future development would require the property to be purchased by
another City department. Wussow expressed concern that development would conflict with the
property's intended purpose. Staff responded that no development is currently planned and that the
Community Development Director also believes the property is not suitable for development.
Electric Director Report - see packet board for report.
Additionally, Hawkinson reported on the significant storm that impacted the Brainerd Lakes area, noting
that the utility system performed well, with only about 22 sustained outages despite numerous system
operations and alarms. Staff credited the utility's infrastructure investments and thanked line crews for
working overnight in difficult conditions to restore service, expressing pride in the team's response and
the reliability of the system.

Page 8 of 97

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BRAINERD PUBLIC UTILITIES COMMISSION MEETING
May 26, 2026
Water/Wastewater Manager Report- see board packet for report.
Wanted to welcome Wastewater Treatment intern Kaylan Peterson to the team.
In addition to his report, Gammon noted that, according to the DNR, the area is in the beginning stages of
a drought warning. He encouraged residents, businesses, and landowners to watch for communications
from their water supplier regarding possible future water use reduction measures and restrictions.
Finance Manager’s Report – see board packet for report.
In addition to Loch’s report, he wanted to welcome Business Office Supervisor Heidi Gandsey to the team.
Loch also reported that work is underway to bring the 2026 financial information up to date after
prioritizing completion of the cost-of-service studies and audit. Commissioners were advised that the
reported $4 million budget surplus is seasonal and misleading, as construction spending has not yet
occurred, and it should not be interpreted as available cash on hand.
City Council Liaison Report
Wished everyone a happy 4th of July.
Commission Members – Report
Commissioner Bayliss wished everyone a safe and enjoyable holiday weekend and encouraged reflection
on the significance of Independence Day while expressing appreciation for those who have served and
continue to serve in defense of the nation's freedoms.
Commissioner Wussow reported on presenting to the National Association of Realtors about Brainerd's
housing growth, highlighting the community's collaborative housing efforts, major development
projects, and the importance of infrastructure investments. Wussow commended staff for their work
over the past five years and noted that the presentation showcased the city's accomplishments.
Wussow also shared meetings with Senators Amy Klobuchar and Tina Smith, where discussions included
the state hospital property and data center ordinances. Wussow concluded by praising Paul's
community update videos and wished everyone a happy 4th of July.
Commissioner Jay reminded residents to be mindful with fireworks over the 4th of July holiday, noting
that BPU crews are responsible for responding to any outages or issues that may occur.
Commissioner Angland thanked BPU staff for their proactive approach and continued efforts to position
the utility for future success.

Page 9 of 97

Page 10 of 97

BRAINERD PUBLIC UTILITIES COMMISSION MEETING
May 26, 2026

Adjournment
Motion by Commissioner Wussow and seconded by Commissioner Bayliss to adjourn to MMUA virtual
session July 15th 3pm-5pm. There was a unanimous vote in favor of the motion. Motion carried at 10:55
AM.

_______________________________________
Mike Angland, Commission President

__________________________________________
Danny Loch, Finance Manager/Secretary

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Public Utilities Commission
Agenda Request
MEETING DATE: July 28, 2026
TITLE OF ITEM: Out of State Travel
ACTION REQUESTED: Approve/Deny Motion

ESTIMATED TIME (MIN):

SUBMITTED BY: Danny Loch, Finance Manager

PRESENTER: Danny Loch, Finance Manager

SUMMARY OF ISSUE:
Brainerd Public Utilities has been requested to participate in meetings in Washington, D.C., in December
2026 to discuss federal and state funding opportunities for BPU’s current and future infrastructure
needs. The anticipated meetings would provide BPU representatives with an opportunity to present
information regarding major water, wastewater, electric, and hydroelectric projects and discuss
potential funding assistance with Minnesota representatives, agency personnel, and other funding
partners.
The City of Brainerd Employee Policy Manual requires out-of-state travel exceeding 300 miles from
Brainerd to receive advance approval through the applicable City and BPU approval processes. The City
processes have been completed. Because the anticipated trip to Washington, D.C., exceeds this
threshold and will require air travel, staff is requesting Commission approval before travel
arrangements and related expenses are incurred.
The primary purpose of the trip is to advocate for financial assistance for BPU’s significant long-term
capital needs and to maintain relationships with governmental representatives and funding agencies.
Approval of the travel does not guarantee that federal or state funding will be awarded.
ALTERNATIVE, OPTIONS, EFFECTS ON OTHERS/COMMENTS:
RECOMMENDED ACTION/MOTION: Motion to approve out-of-state travel to Washington, D.C., in
December 2026 for designated BPU representatives, including reasonable and necessary expenses
incurred in accordance with the City of Brainerd Employee Policy Manual, and to authorize staff to
complete the remaining required approvals and travel arrangements.
FINANCIAL IMPACT: Expenses are expected to include airfare, lodging, meals, local transportation,
parking, and other necessary travel costs. The estimated cost is $1,500 per traveler, with an estimated
total cost not to exceed $4,000. Expenses will be paid from available BPU budgeted funds.

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Page 12 of 97

Online Auction Request
Online auctions run for 7 to 10 days. Each lot is run as a separate auction. Inspections will be done by
appointment only. Please provide all the information below along with digital photos of the lots and copies of
titles for all vehicles and trailers. BIDDER PAYMENTS MUST BE A CERTIFIED CHECK OR MONEY ORDER MADE
PAYABLE TO SURPLUS SERVICES. Full payments must be sent to Surplus Services as soon as possible.

Contact information
Department/Agency: BRAINERD PUBLIC UTILITIES
ANNMARIE LAMSER
Contact Name:
8027 HIGHLAND SCENIC RD, BAXTER, MN 56425
Address:
Email:
Phone:
Item Location:

[email protected]
218-825-3233

Deposit Info

Remittance
Address:

Vendor Number:

Lot Information
Please review our website: www.MinnBid.org. Look over some of the past and current Online Auctions. This will
give you and idea of what the information should be provided in the Remarks section.

LOT 1
YOUNGSTOWN
Model
Year
Make
VIN/Serial Number
$
Condition NEW
Reserve Price (optional)
Mileage
NEW
FR
WATERPROOF
WINTER
YOUNGSTOWN
GLOVES
W/KEVLAR.
5
PAIR
12-3290-60-XXL.
7 PAIR
Remarks:
Any known
Defects
and
options the
unit may
have

12-3290-60-3XL

LOT 2
Year
VIN/Serial Number
Mileage
Remarks:

Make

Model

Condition

Reserve Price (optional)

Any known
Defects
and
options the
unit may
have
Page 12 of 97

Page 13 of 97

LOT 3
Year
VIN/Serial Number
Mileage
Remarks:

Make

Model

Condition

Reserve Price (optional)

Make

Model

Condition

Reserve Price (optional)

Make

Model

Condition

Reserve Price (optional)

Any known
Defects
and
options the
unit may
have

LOT 4
Year
VIN/Serial Number
Mileage
Remarks:

Any known
Defects
and
options the
unit may
have

LOT 5
Year
VIN/Serial Number
Mileage
Remarks:

Any known
Defects
and
options the
unit may
have
BIDDER PAYMENTS MUST BE A CERTIFIED CHECK OR MONEY ORDER MADE PAYABLE TO SURPLUS SERVICES. Full
payments must be sent to Surplus Services, 5420 Old Highway 8, Arden Hills, MN 55112 as soon as possible.

I certify that this is property owned by agency submitting this form and is not subject to any lien,
restriction, or other encumbrance.
________________________________________
Authorized Signature

_____________________________
Title

___________________
Date

Surplus Services Use Only
Surplus Services Authorization

Page 13 of 97

Page 14 of 97

Surplus Equipment (BPU) - Technology Dept 2026
Type
desktop
desktop
desktop
desktop
desktop
desktop
desktop
desktop
desktop
desktop
desktop
desktop
desktop
desktop
desktop
desktop
desktop
desktop
desktop
desktop
desktop
desktop
desktop
desktop
desktop
desktop
desktop
desktop
desktop
desktop
desktop
desktop
desktop
desktop
desktop
desktop
desktop
desktop
desktop
laptop
laptop
laptop
laptop
laptop
laptop
laptop

Model
Optiplex 9020
Optiplex 7040
Optiplex 9020
Optiplex 9020
Optiplex 9020
Optiplex 9020
Optiplex 9020
Optiplex 9020
Optiplex 9020
Optiplex 9020
Optiplex 7050
Optiplex 9020
Optiplex 9020
Optiplex 9020
Optiplex 7040
Optiplex 9020
Optiplex 9020
Optiplex 9020
Optiplex 9020
Optiplex 7040
Optiplex 9020
Optiplex 9020
Optiplex 9020
Optiplex 9020
Optiplex 9020
Optiplex 9020
Optiplex 7050
Optiplex 9020
Optiplex 9020
Optiplex 9020
Optiplex 9020
Optiplex 7050
Optiplex 9020
Optiplex 7040
Optiplex 9020
Optiplex 9020
Optiplex 7040
Optiplex 9020
Optiplex 9020
VOSTRO P83F
VOSTRO P83F
VOSTRO P83F
VOSTRO P92G
VOSTRO P92G
VOSTRO P102F
VOSTRO P102F

SN
CJBQP22
GCV3V62
6NPYB62
H2CGCY1
3JSSP52
GJQQB42
1M9XBZ1
2TSYBZ1
H2CHCY1
8T9HK02
J620JN2
GMSCW52
CPM0Y12
2JR5622
GCV4DD2
G7KPDZ1
G7KNDZ1
8T9JK02
H4FDC42
FFSWP52
CPJ4Y12
CPK0Y12
BN21S22
BN7ZR22
CJ0SP22
BJR9622
J61FMF2
3L33C62
JG9WB42
CPKYX12
1M9YBZ1
J5ZNGL2
JRRSD22
G6DCKB2
J37SFZ1
CPL4Y12
FFSSP52
J38HFZ1
2TS1CZ1
34991883254
6CQ9HX2
1YN9HX2
75NJHT2
JDTJHT2
JHL9103
78L9103

Asset Tag
5078
5094
5152
5065
5115
5140
NONE
5072
5054
5102
5087
5135
NONE
5061
5149
5035
5042
5159
5199
5154
5166
5130
5006
5003
5205
5000
5021
5131
5017
5162
5109
5188
5194
5143
5230
5121
5168
5028
5011
NONE
5222
5187
5182
5226
5213
5175

Page 14 of 97

Page 15 of 97

Type
laptop
laptop
laptop
laptop
laptop
monitor
monitor
monitor
monitor
monitor
monitor
monitor
monitor
monitor
monitor
monitor
monitor
monitor
monitor
monitor
monitor
monitor
monitor
monitor
monitor
monitor
monitor
monitor
monitor
monitor
monitor
monitor
monitor
monitor
monitor
monitor
monitor
printer
printer
printer
printer
printer
printer
printer
printer
printer

Model
VOSTRO P102F
VOSTRO P102F
VOSTRO P102F
VOSTRO P102F
VOSTRO P102F
ASUS VG 248QG
Dell 1908Fp
AOC LM729
Dell 1908Pb
Dell E197Fm
Dell E2210F
Dell P2725H
Dell P2725H
Dell E2210HC
ASUS VE278
P2014Ht
P2214Hb
Dell V2414Hb
Dell P2214Hb
Dell P2214Hb
Dell P2214HB
Dell P2014Ht
P2014Ht
P2014Ht
HP L1906
Dell P2014Ht
Dell P2014Ht
Dell P2014Ht
Dell P2012H
Dell P2014Ht
Dell P2217H
ASUS VG24SH
P2214Hb
Dell 2214Hb
ASUS VG 248QG
P2214Hb
P2014Ht
HPLaserjet m4s2dn
HP Laserjet M4S2dn
Brother HhL6200DW
Canon ImageClass Mf236n
Canon Image Runner 1023N
HP Laserjet M452dn
Brother ML300
HP Laserjet m454dn
HP Laserjet m452dn

SN
JLL9103
C8L9103
3ML9103
29L9103
J8L9103
M9LMQS136149
CN0G313H742618CM7EPL
171SCHA024301
CN0G31H742618CM7EJL
CNOWH319728726BTHEM
CNOT776R7287205P3BUL
953SS34
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CNOH256R64180O1ROJL
H3LMTF039472
CN0J6HFT74445395BP7L
CNOKW14V74261S8I8CUL
CN0R9F1P7426148123VL
CN0KW14V7426153V6W1L
CN0T0RN67426162M3HVB
7VR1M82
CN036HFT7444548NBL8L
CNOJ6HFT74445433B2ML
CNOJ6HFT744454CBC6SL
CND7362X71C
CN0J6HFT7444539TB4YL
CN0J6HFT74445433B22L
CN0J6HFT744453BKANML
CNOWSHWR7444538GAMJM
CN0J6HFT744453BJAHEL
2W3SS82
J4LMQ5097445
CNOKW14V7426158I8CYL
CN0T0RN67426162M33GB
SILMQS072781
CNOKW14V742615881R1B
CNOJ6HFT74445395D9QL
VNB3X25785
VNB3X25775
UU4180J7N798697
WQW21231
TJEO3588
VND3B025158
U53081A6P353408
VNB3505682
VND3M03785

Asset Tag
5225
5178
5191
5193
5235
NONE
NONE
NONE
NONE
NONE
NONE
5409
5401
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5136
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5082
5044
5043
5030
5019
5018
NONE
NONE
NONE
NONE
NONE
NONE
NONE
NONE
NONE

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Page 16 of 97

Type
printer
printer
printer
printer
printer
printer
printer
printer
printer
printer
printer

Model
HP Laserjet m452dn
HP L1906
Brother HLL6200DW
Canon DR501C
HP Laserjet 1320N
Xerox QRRS02016
Canon L190
HP Laserjet P3005d
HP Laserjet 2420d
HP Laserjet M4S2dw
HP Laserjet M4S4dn

SN
VND3B02144
CND7362X75
U64180J7N798095
DD310142
CNFC566244
C235
L2Y25974
CNJ1F53254
CNGKK13486
VNB3D02163
VNB3K17010

Asset Tag
NONE
NONE
NONE
NONE
NONE
5176
5133
5120
5101
5092
5059

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Public Utilities Commission
Agenda Request
MEETING DATE: July 28, 2026
TITLE OF ITEM: Waterworth Rate Study Tool
ACTION REQUESTED: Discussion Item

ESTIMATED TIME (MIN):

SUBMITTED BY: Danny Loch, Finance Manager

PRESENTER: Danny Loch, Finance Manager

SUMMARY OF ISSUE: As part of BPU’s ongoing financial and capital planning efforts, staff has begun
working with Waterworth and its long-term financial forecasting and rate modeling program. The
program is intended to connect capital improvement needs with projected operating revenues,
expenses, reserves, debt, grants, and customer rates. This allows staff and the Commission to evaluate
how changes in project timing, costs, funding sources, and rate assumptions may affect the long-term
financial sustainability of each utility.
Adam Duddy from Waterworth will attend Tuesday’s Commission meeting to introduce the program
and provide an overview of the initial financial models developed for BPU’s water and wastewater
utilities.
Staff and Adam have entered historical financial information, previously approved operating budgets,
and BPU’s existing capital improvement plans into the program. The models have also been updated to
incorporate information from the wastewater facility plan, ongoing water system planning discussions,
recent water studies, and other engineering services and estimates. BPU’s approved capital
improvement plan identifies significant anticipated investment in both the water and wastewater
systems, while the audited financial statements provide the starting financial position used in evaluating
how those investments may be funded.
The information being presented is preliminary and should not be considered a completed rate study,
final capital plan, or formal rate recommendation. The purpose of the presentation is to introduce the
Commission to the program, review the assumptions currently included in the models, and
demonstrate how the program may be used to identify future funding shortfalls and evaluate potential
solutions.
The initial modeling may illustrate financial challenges that have not previously been presented to the
Commission in this format. These projections will continue to be refined as project scopes, engineering
estimates, financing options, grant opportunities, operating costs, and other assumptions are updated.
Any future rate changes, borrowing decisions, or revisions to the capital improvement plan would be
presented separately for Commission consideration through the normal budget and approval processes.

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ALTERNATIVE, OPTIONS, EFFECTS ON OTHERS/COMMENTS: Waterworth is intended to serve as an
ongoing financial planning tool rather than a replacement for BPU’s accounting system, engineering
studies, annual budget process, or formal cost-of-service studies. The model can be updated as financial
conditions and infrastructure plans change, allowing staff and the Commission to evaluate different
scenarios using a consistent set of information.
RECOMMENDED ACTION/MOTION: This item is presented for informational and discussion purposes.
No formal Commission action is requested at this time.
FINANCIAL IMPACT: There is no immediate financial impact associated with this informational
presentation. Future financial impacts will depend on the capital projects, funding strategies, rate
adjustments, and other policy decisions ultimately considered and approved by the Commission.

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Waterworth
A financial forecasting and revenue calibration solution adopted by hundreds of organizations across North America. Our job is to help utilities
like yours plan financially — so you can avoid surprises, avoid emergency rate hikes, and make smart choices about how to invest in your
infrastructure.

Our Tool

Presentation Outcomes
•

Continuous Process

•
•

To have a clear picture on current/forecasted
financials
To know what the revenue requirements are
To have an actionable plan

Full Cost Recovery
•
•

Communication

•

Understanding of our tool/process
To know how we have produced the
information
Have confidence in the results

Our Process

Establish Financial Baseline

Build Long-term
Financial Forecasts

Determine Revenue
Needs and Funding
Strategies

Communicate,
Communicate,
Refine and
Refine, and
Repeat
Repeat

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Water Revenue
Requirements

3
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Operating Expenses
This chart illustrates the operating & maintenance expenses - the routine costs required to provide safe and reliable water service. These include but are not limited to
salaries & benefits, contracted services, system maintenance, utilities, treatment chemicals, insurance and other operating and administrative costs.

3% Growth

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Debt Expense
This chart represents the utility’s use of debt to fund capital investments and manage cash flow needs. Debt financing allows the utility to spread the cost of large
infrastructure projects over time, aligning repayment with the useful life of the assets and the benefits received by future ratepayers. Historic figures reflect actual debt
service payments, while future projections are based on existing debt schedules and anticipated borrowing tied to planned capital improvements.

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Capital Expenses
In addition to meeting ongoing operating costs, the utility must continue to invest in capital improvements for system renewal and capacity improvements to ensure
long-term service reliability. Historic years are based on audited actuals, the current year on the approved budget, and future years on projections from a Capital
Improvement Plan.

Reclamation/Backwash Construction Project – 2026, 2027 - $
5,300,000
Highway 210/Washington Street – 2026, 2027 - $ 4,050,000
New Plant Provision – 2026 to 2032 - $ 60,175,000
Lead Service Replacements – 2026 to 2035 - $ 2,675,000 annually
Well #9 – 2028 - $ 5,000,000

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Revenue Requirements
Revenue requirements are the total annual funds needed to operate, maintain, and reinvest in infrastructure sustainably. This includes operating costs, debt service,
and capital replacement needs. Understanding these requirements helps ensure long-term financial planning, supports rate setting, and highlights funding gaps to
guide informed decisions.

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Projected Revenues – No Growth
Status quo revenues refer to the funding expected under current rates, policies, and practices without any changes. This projection helps determine whether existing
revenue streams are sufficient to cover future operating costs, debt obligations, and capital needs. Comparing status quo revenues to revenue requirements reveals
any gaps that may need to be addressed through rate adjustments or new funding sources.

Loans:
Well #9 – 2028 - $ 5,000,000
New Plant Provision – 2026 to 2032 - $ 54,500,000
Various Projects – 2026 to 2035

Grants:
Reclamation/Backwash Construction Project – 2026, 2027 - $
5,000,000
Lead Service Replacements – 2026 to 2035 - $ 2,675,000 annually
8

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Cash Position
The cash position reflects the available funds a utility has on hand to cover operations, emergencies, and financial obligations. Maintaining adequate cash reserves—
guided by targets or thresholds—ensures stability, supports long-term planning, and helps manage unexpected costs. Regularly tracking the cash position is key to
maintaining financial resilience.

2026 Operating Threshold: $
1,519,369

2026 Cash Position: $ 602,617
The operating threshold represents six months of operating expenses and serves as a planning benchmark for the recommended minimum level
of available cash reserves in each fiscal year.
9

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Status Quo - Long Term Financial Model
The status quo long-term financial model reflects the utility’s projected financial performance under current rates and policies, before any revenue increases are
considered. It shows how existing revenues align with future expenses, capital needs, and cash reserve targets. This model helps identify potential funding gaps,
assess long-term sustainability, and determine whether adjustments are needed to maintain financial stability.

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Water Proposed Solution

11
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Proposed Solution – Revenue Adjustments
The proposed revenue adjustments allow cash reserves to recover above the operating threshold by 2034. While the percentages shown represent the overall revenue
adjustments required, individual rates do not necessarily need to increase by the same amount; as we continue refining the model, we can evaluate future rate
structures that distribute these adjustments appropriately across customer classes and charges.

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Wastewater Revenue
Requirements

14
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3% Growth

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Plant Expansion/ Upgrades – 2028, 2030 - $ 41,560,000
Main Lift Replacement – 2027 - $ 10,200,000
Plant Expansion/ Upgrades – 2040 to 2042 - $ 76,600,000
17

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Loans:
Main Lift Replacement – 2027 - $ 10,200,000
Plant Expansion/ Upgrades Phase 1– 2028 to 2030 - $ 41,500,000
Plant Expansion/ Upgrades - Phase 2 – 2040 to 2042 - $ 76,600,000
19

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2026 Cash Position: $
7,253,407

2026 Operating Threshold: $
1,572,922

The operating threshold represents six months of operating expenses and serves as a planning benchmark for the recommended minimum level
of available cash reserves in each fiscal year.
20

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Wastewater Proposed
Solution

22
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Proposed Solution – Revenue Adjustments
The proposed revenue adjustments allow cash reserves to stay above the operating threshold. While the percentages shown represent the overall revenue
adjustments required, individual rates do not necessarily need to increase by the same amount; as we continue refining the model, we can evaluate future rate
structures that distribute these adjustments appropriately across customer classes and charges.

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Brainerd Public Utilities
BPU Commission Unfinished Business
July 2026
A. Hydro Generation (1/31/23)
Staff continued evaluating replacement options and financing strategies for the hydroelectric
generation project. Voith met with Barr Engineering to review equipment and design considerations
that may affect generator flows, civil construction requirements, and the overall project scope.
Additional engineering analysis is underway to determine whether design modifications could improve
project performance or reduce associated civil work and installation costs.
Staff also continued discussions with the utility’s financial advisors regarding potential bonding and
available federal incentives. Preliminary review indicates that the project may qualify for an Investment
Tax Credit of approximately 30 percent of eligible project costs. Staff are working to confirm eligibility,
qualifying expenditures, timing requirements, and the potential financial benefit before incorporating
the credit into formal project financing scenarios.
Updated engineering and financing information will be presented to the Commission as the project
scope, costs, and available funding options are further refined.
B. Strategic Planning (04/24/2025)
Former Director Evans initiated and presented a strategic planning session along with supporting
documentation. Following the onboarding of Director Sandy, integration discussions with the City
resumed and will continue through the remainder of 2025 as the Charter Commission and City Council
consider potential Charter amendments. Because these changes could directly affect strategic
planning, the planning process was paused to ensure that all City departments can ultimately be
aligned under a single, comprehensive plan. This pause remains in effect.
Once integration discussions are complete and there is a clear understanding of how the Utility and
the City will function operationally, strategic planning efforts will resume under the direction of the
Public Works Director, Electric Director and the City Administrator. Long-range planning sessions with
City staff have begun and are anticipated to be a one- to two-year process. The goal of these sessions
is to develop long-range sanitary sewer and water distribution plans, integrate asset management
activities—including long-range capital improvement planning—and identify strategies to better align
capital improvement projects across the City’s divisions.
C. Electric Vehicle Charging Rate
Following questions raised by the Commission at last month’s meeting regarding a potential electric
vehicle charging rate, staff revisited the topic as part of the ongoing electric cost of service and rate
study. Although prior discussions on a separate EV charging rate had been tabled, staff discussed the
issue with Dave Berg Consulting to evaluate appropriate rate design considerations, cost recovery,
and potential customer impacts. Any future recommendation will be presented to the Commission after
the analysis is completed.

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Completed in 2025:
1.
2.
3.
4.
5.
6.
7.

Customer Communications Policy – GoldCross
Commissioners Health Insurance – Tabled
Website Updates: Solar Distributed Energy Resources – Posted on Website
Schedule of Authority Roles of Commission and Council in Operation of BPU
Electric Transmission Service to Brainerd – Interconnection Study v. Building Capacity
Reclamation and Backwash CMAR Project Selection – Rice Lake Construction
Crypto Mining Activity

Completed in 2026:
1.
2.
3.
4.
5.

ClimaVision Radar – Awaiting Construction
Main Lift Station Painting – Holding off due to planned 2027 Main Lift Station Reconstruction
Water Code 705 – Approved by City Council on 5/18/2026
Development of Plan to be Carbon Free by 2040
Lead Service Line Inventory Assessment and Replacements – First replacement project in 2026.
On-going PPL and IUP maintenance activities for future replacement projects.
6. Waterworth Continuous Rate Management – Implementation in 2026
7. Crypto Mining Activity – Second Amendment to Just for Krypto (JFK) contract
8. Wastewater Treatment Facility (WWTF) Plan Submission to MPCA
9. Professional Engineering and Architectural Services Pool
10. Large Industrial Power Customer Application and Guidebook
11. 2027 Lead and Galvanized Water Service Line PPL and IUP Submissions
12. Review of proposed 10-Year Capital Improvement Plan for Streets and Utilities
13. EV Charging Policy – Tabled
14. Comprehensive Policy Review
a. BPU_POL_2005-07 – Inactive Accounts
b. BPU_POL_2005-10 – Disconnection of Service
c. BPU_POL_2003-05 – Fees for Water Meters
d. BPU_POL_2024-01 – Frozen Water Lines
e. BPU_POL_2025-01 – Leaking Water Service Line Policy
f. BPU_POL_2003-04 – Unauthorized Use of Utility Meters
g. BPU_POL_2008-13 – Access to Premises
h. BPU_POL_2007-11 – Utility Service Turn on Fee
i. BPU_POL_2007-12 – Fee for Checking Readings and Test/Change Meters
j. BPU_POL_2005-08 – Application for Service
k. BPU_POL_2003-07 – Tenant/Landlord Responsibility for Vacated Rentals
l. BPU_POL_2005-09 – Customer Deposits
m. BPU_POL_2005-06 – Metering of Multi Unit Dwellings for Rentals

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Acronyms:
WASTEWATER:
MPCA – Minnesota Pollution Control Agency
WWTF – Wastewater Treatment Facility
NPDES – National Pollutant Discharge Elimination
System
EPA – US Environmental Protection Agency
CWA – Clean Water Act
WQS – Water Quality Standard
TMDL – Total Maximum Daily Load
WLA – Waste Load Allocation
BMP – Best Management Practice
SCADA – Supervisory Control and Data
Acquisition
CWRF – Clean Water Revolving Fund
PSIG – Point Source Implementation Grant
SSTS – Subsurface Sewage Treatment System
ADW – Average Dry Weather Flow
AA – Average Annual Flow
AWW – Average Wet Weather Flow
PDF – Peak Daily Flow
PHWW – Peak Hourly Wet Weather Flow
PIWW – Peak Instantaneous Wet Weather Flow
GPD – Gallons per Day
GPCD – Gallons per Capita per Day
MGD – Million Gallons per Day
PPM – Parts per Million
PPB – Parts per Billion
I & I – Inflow and Infiltration
CBOD5 – Carbonaceous Biochemical Oxygen
Demand

BOD5 – Biochemical Oxygen Demand
PFAS – Polyfluoroalkyl and Perfluoroalkyl
Substances
PFOS – Perfluorooctance Sulfonate
PFOA – Perfluorooctanoic Acid
TSS – Total Suspended Solids
TDS – Total Dissolved Solids
pH – Measure of acidity/alkalinity
NH3-N – Total Ammonia Nitrogen
TKN – Total Kjeldahl Nitrogen
TN – Total Nitrogen
NO3 – Nitrate
NO2 - Nitrite
TP – Total Phosphorus
DO – Dissolved Oxygen
DMR – Discharge Monitoring Report
SIU – Significant Industrial User
MCC – Motor Control Center
SBR – Sequencing Batch Reactor
AS-BNR – Activated Sludge – Traditional
Biological Nutrient Removal
IFAS – Integrated Fixed-Film Activated Sludge
MBR – Membrane Bioreactor
BAF – Biologically Aerated Filters
UV – Ultraviolet
WAS – Waste Activated Sludge
GBT – Gravity Belt Thickener
VFD – Variable Frequency Drive

WATER:
MDH – Minnesota Department of Health
EPA – Environmental Protection Agency
SDWA – Safe Drinking Water Act
DWRF – Drinking Water Revolving Fund
AWWA – American Water Works Association
DWSMA – Drinking Water Supply Management
Area
WPA – Wellhead Protection Area
PWS – Public Water Supply
MCL – Maximum Contaminant Level
TDS – Total Dissolved Solids
TSS – Total Suspended Solids
pH – Measure of acidity/alkalinity
CL2 – Chlorine
Mn – Manganese
Fe – Iron

HAA – Haloacetic Acids
PFAS – Polyfluoroalkyl and Perfluoroalkyl
Substances
PFOS – Perfluorooctance Sulfonate
PFOA – Perfluorooctanoic Acid
VFD – Variable Frequency Drive
SCADA – Supervisory Control and Data
Acquisition
MCC – Motor Control Center
GAC – Granular Activated Carbon
RO – Reverse Osmosis
PPM – Parts per Million
PPB – Parts per Billion
RRA – Risk and Resilience Assessment
ERP - Emergency Response Plan

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GENERAL INFRASTRUCTURE:
MnDOT – Minnesota Department of Transportation
CEAM – City Engineers Association of Minnesota
APWA-MN – American Public Works Association
of Minnesota
MnPFA – Minnesota Public Facilities Authority
MPCA – Minnesota Pollution Control Agency
MDH – Minnesota Department of Health
MMUA – Minnesota Municipal Utilities Association
GIS – Geographic Information Systems
CIP – Capital Improvement Plan
ROW – Right of Way
ADA – Americans with Disabilities Act
ENVIRONMENTAL:
NPDES – National Pollutant Discharge Elimination
System
MnDNR – Minnesota Department of Natural
Resources
SWCD – Soil and Water Conservation District
MPCA – Minnesota Pollution Control Agency
SWPPP – Stormwater Pollution Prevention Plan
MS4 – Municipal Separate Storm Sewer System
WCA – Wetland Conservation Act
ELECTRIC:
MP – Minnesota Power
MISO – Midcontinent Independent System
Operator
AEP – American Electric Power
AEP Energy Partners – American Electric Power
Energy Partners an AEP Company
HYDRO:
FERC – Federal Energy Regulatory Commission
SHPO – Minnesota State Historic Preservation
Office
Project – Brainerd Hydro Electric Project
CRMP - Cultural Resources Management Plan
ARS - Archaeological Research Services

RFP – Request for Proposals
RFQ – Request for Quotes
PVC – Polyvinyl Chloride (pipe)
HDPE – High Density Polyethylene
DIP – Ductile Iron Pipe
DR – Dimension Ratio (pipe)
C900 – Watermain Pipe Specification
RCP – Reinforced Concrete Pipe
RC – Reinforced Concrete
CIPP – Cured in Place Pipe
OD – Outside Diameter
ID – Inside Diameter
BMP – Best Management Practice
TMDL – Total Maximum Daily Load
ESA – Environmental Site Assessment
EAW – Environmental Assessment Worksheet
EIS – Environmental Impact Statement
NEPA – National Environmental Policy Act
MEPA – Minnesota Environmental Policy Act
VOC – Volatile Organic Compounds

kWh – Kilowatt hour
MWh – Megawatt hour (1,000 times larger than a
kWh)
kW – Kilowatt
MW – Megawatt
JFK – Just for Krypto
HPMP - Historic Properties Management Plan
NRHP - National Register of Historic Places
APE - Area of Potential Effects
ACHP - Advisory Council on Historic Preservation
THPO - Tribal Historic Preservation Officer

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Public Utilities Commission
Agenda Request
MEETING DATE: July 28, 2026
TITLE OF ITEM: 2026 Comprehensive Policy Review Update
ACTION REQUESTED: Approve/Deny Motion

ESTIMATED TIME (MIN):

SUBMITTED BY:

PRESENTER:

SUMMARY OF ISSUE:
ALTERNATIVE, OPTIONS, EFFECTS ON OTHERS/COMMENTS:
RECOMMENDED ACTION/MOTION:
FINANCIAL IMPACT:

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Public Utilities Commission
Agenda Request
MEETING DATE: July 28, 2026
TITLE OF ITEM: BPU_POL_2021-01 Opt Out Meter Reading Fee
ACTION REQUESTED: Approve/Deny Motion

ESTIMATED TIME (MIN):

SUBMITTED BY: Danny Loch, Finance Manager

PRESENTER: Danny Loch, Finance Manager

SUMMARY OF ISSUE: As part of the 2026 Comprehensive Policy Review, staff selected BPU_POL_202101 – Opt-Out Meter Reading Fee Policy for review and update. Staff recommend updating the policy to
the Commission-approved standardized template and revising the Policy Statement to reference the
applicable charge established in the current BPU Fee Schedule rather than stating a specific $25 fee
within the policy.
This change will allow future fee adjustments to be made through the Commission’s approval of the
BPU Fee Schedule without requiring a separate policy amendment. No other substantive changes are
proposed.
ALTERNATIVE, OPTIONS, EFFECTS ON OTHERS/COMMENTS:
RECOMMENDED ACTION/MOTION: Staff recommend approving the amended BPU_POL_2021-01 Opt
Out Meter reading fee as presented.
FINANCIAL IMPACT: None.

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Opt-Out Meter Reading Fee
BPU_POL_2021-01
Latest Revision/Effective Date: July 28, 2026
Original Adoption Date: January 26, 2021
I.

Purpose
To establish guidelines, responsibilities, and associated fees for Brainerd Public
Utilities (BPU) customers who formally choose to opt out of the installation of
Advanced Metering Infrastructure (AMI) electric and/or water meters at their
residential properties.

II.

Scope
This policy applies to all BPU residential customers requesting an exemption from
AMI meter deployment, as well as the utility personnel responsible for billing, account
estimation, and physical meter inspection.

III.

Definitions
AMI (Advanced Metering Infrastructure): An integrated system of smart meters,
communications networks, and data management systems that enables two-way
communication between utilities and customers.
Opt-Out: A formal request by a utility customer to bypass the standard installation of
wireless or smart digital utility meters, keeping or replacing them with a noncommunicating alternative.
Estimated Consumption: An approximate calculation of utility usage applied to a
billing cycle when actual, verified meter readings are unavailable.

IV.

Policy Statement
When a Brainerd Public Utilities (BPU) customer requests to opt-out from having an
AMI electric and/or water meter installed at their residence, the customer is required to
read their meters each month and submit the readings to BPU for billing purposes. If
the readings are not received by the billing date, the electric and/or water
consumption(s) will be estimated.

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BPU_POL_2021-01
Page Number 2
It is necessary that BPU physically read the customer’s meters in June and December
of each year. The customer will be charged a reading fee as set by the approved fee
schedule on their utility bill for each of these months.
BPU requires utility meters to always be accessible to BPU personnel. BPU has the
right to access a customer’s residence or business at reasonable times, whether it is for
the reading, inspection, repairing and/or replacing an electric and/or water meter, or for
some other purpose reasonably necessary for the proper management of the utility
service.

Procedures
1. Monthly Customer Reporting: Customers must personally record metrics from
their electric and/or water meters each month. Readings must be submitted
directly to BPU prior to the designated monthly billing date.
2. Billing Penalties for Non-Reporting: If the customer's self-readings are not
received by the billing date, the electric and/or water consumption(s) will
automatically be estimated for that cycle.
3. Mandatory Bi-Annual Utility Readings: BPU service staff must physically read
the opt-out customer’s meters twice per year. These mandatory physical checks
occur strictly in June and December.
4. Fee Assessment: A meter reading fee will be automatically charged to the
customer's utility bill in accordance to BPU schedule of fees during the months of
June and December to cover the cost of manual processing.

VI.

Roles and Responsibilities
1. The Customer: Accountable for submitting monthly meter data on time, paying
the bi-annual service fee, and maintaining clear, uninhibited access to all utility
equipment on their property.
2. BPU Field Personnel: Responsible for conducting physical reads, routine
inspections, maintenance, and equipment replacements at reasonable hours.
3. BPU Billing Department: Accountable for applying accurate usage data,
projecting consumption estimates when data is missing and assessing the
applicable fee in June and December.

VII.

Compliance and References
None.

VIII. Associated Forms and Attachments
None.

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BPU_POL_2021-01
Page Number 3
IX.

Review and Update Schedule
This policy shall be reviewed as necessary, to ensure compliance with applicable laws
and regulations, alignment with utility billing and collection practices, and continued
protection of the financial interests of Brainerd Public Utilities and its customers.
Revised: July 28, 2026

Approval and Authority
The Brainerd Public Utilities Commission has the authority to approve, amend, and
repeal this policy. Upon approval by the Commission, the policy shall be implemented,
administered, and enforced by the Finance Manager or their designee.

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BRAINERD PUBLIC UTILITIES
POLICY 2021-01
Adopted 01/26/21
OPT OUT METER READING FEE
When a Brainerd Public Utilities (BPU) customer requests to opt out from having
an AMI electric and/or water meter installed at their residence, the customer is
required to read their meters each month and submit the readings to BPU for
billing purposes. If the readings are not received by the billing date, the electric
and/or water consumption(s) will be estimated.
It is necessary that BPU physically read the customer’s meters in June and
December of each year. The customer will be charged a $25 meter reading fee as set
by the approved fee schedule on their utility bill for each of these months.
BPU requires utility meters to always be accessible to BPU personnel. BPU has the
right to access a customer’s residence or business at reasonable times, whether it is
for the reading, inspection, repairing and/or replacing an electric and/or water
meter, or for some other purpose reasonably necessary for the proper management
of the utility service.

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Public Utilities Commission
Agenda Request
MEETING DATE: July 28, 2026
TITLE OF ITEM: BPU_POL_2008-15 Non- Sufficient Funds Checks and ACH Payments
ACTION REQUESTED: Approve/Deny Motion

ESTIMATED TIME (MIN):

SUBMITTED BY: Danny Loch, Finance Manager

PRESENTER: Danny Loch, Finance Manager

SUMMARY OF ISSUE: As part of the 2026 Comprehensive Policy Review, staff selected BPU_POL_200815 – Non-Sufficient Fund Checks and ACH Payments Policy for review and update. During the review,
staff noted that the existing policy statement included detailed procedural requirements. Staff
recommend updating the policy to the Commission-approved template by revising the Policy Statement
to clearly summarize BPU’s requirements for valid and collectible payments and relocating the detailed
operational language to the Procedures section.
The primary substantive update expands the policy to address current payment methods, including
electronic transfers and electronic checks, in addition to traditional checks and ACH payments. The
remaining revisions reorganize and clarify the existing requirements, modernize terminology, and align
the policy with the approved standardized format without materially changing how returned payments
are administered.
ALTERNATIVE, OPTIONS, EFFECTS ON OTHERS/COMMENTS:
RECOMMENDED ACTION/MOTION: Staff recommend approving the amended BPU_POL_2008-15 NonSufficient Funds Checks and ACH Payment policy as presented.
FINANCIAL IMPACT: No change.

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Non-Sufficient Fund (NSF) Checks and ACH Payments
BPU_POL_2008-15
Latest Revision/Effective Date: July 28, 2026
Original Adoption Date: December 30, 2008
I.

Purpose
To establish clear, consistent guidelines for handling dishonored payments and to
ensure prompt financial recovery for services rendered.

II.

Scope
This policy applies to all Brainerd Public Utilities (BPU) customers, account holders,
and check issuers who pay for utility services via paper check, Automated Clearing
House (ACH) electronic transfer, or eChecks.

III.

Definitions
Automated Clearing House (ACH) Payment: An electronic transfer of funds
between a customer’s financial account and BPU, including one-time and recurring
bank withdrawals.
Automatic Payment: A payment authorized by the customer to be withdrawn
automatically from a financial account or charged to a credit or debit card.
Customer: The individual or entity responsible for the utility account or payment of
utility charges.
Dishonored Check: A check that is not accepted or paid by the financial institution on
which it was drawn, including a check returned because of non-sufficient funds, a
closed account, a stop-payment order, or another reason.
Electronic Check: An electronic payment that uses a customer’s checking account and
routing information to transfer funds to BPU.
Financial Institution or Payment Processor: A bank, credit union, card processor,
electronic payment provider, or other entity responsible for processing a payment
submitted to BPU.
Non-Sufficient Funds (NSF): A condition in which an account does not contain
enough available funds to complete a payment submitted to BPU.
Payment Issuer: The individual or entity that submits or authorizes a payment to BPU,
whether the individual or entity is the named utility account holder.
Recurring Card Payment: A credit or debit card payment authorized by the customer
to be processed automatically on a recurring basis.

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BPU_POL_2008-15
Page Number 2
Restitution: Payment of the full amount of a returned payment and the applicable
returned-payment service charge.
Returned Payment: Any check, ACH transaction, electronic check, automatic bank
withdrawal, recurring card payment, or other payment that is returned, rejected,
reversed, declined, or otherwise not collected by BPU.
Returned-Payment Service Charge: The charge assessed when a payment is returned
or rejected, in the amount established by the current BPU Fee Schedule.
Service Address: The property or location at which BPU provides utility service
associated with the customer’s account.
Utility Deposit: An amount required by BPU as security for payment of future utility
charges in accordance with applicable BPU policies.
IV.

Policy Statement
Brainerd Public Utilities (BPU) requires customers to submit valid and collectible
payment for utility services. A payment returned or rejected because of non-sufficient
funds, a closed account, or another reason will be considered unpaid. This policy
applies to checks, electronic checks, Automated Clearing House (ACH) payments,
automatic bank withdrawals, and recurring credit or debit card payments.

Procedures
1. Returned Payment Notification
Upon receiving notice that a payment has been returned or rejected, BPU will
notify the customer or payment issuer by regular mail. BPU may also provide
notice electronically when contact information is available. Notices involving a
dishonored check will include the applicable language required by Minnesota
Statute § 609.535.
2. Payment Deadline
The customer must pay the full amount of the returned payment and the
applicable returned-payment service charge within five business days after the
notice is mailed. Payment arrangements will not be accepted until restitution is
made.
3. Service Disconnection
If the required payment is not received within the five-business-day period, BPU
may disconnect one or more utility services at the service address associated with
the account. Any disconnection will be completed in accordance with BPU’s
Disconnection of Service Policy and applicable law.
4. Service Reconnection
Before disconnected utility service is restored, the customer must pay the
following:

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BPU_POL_2008-15
Page Number 3
•
•
•
•
•

The full amount of the returned payment;
The applicable returned-payment service charge established in the current
BPU Fee Schedule;
The entire remaining balance due on the utility account;
The applicable reconnection fee; and
The required utility deposit, if a deposit is not already on file.

5. Repeated Returned Payments
If more than two payments are returned or rejected within any consecutive 12month period, BPU will no longer accept personal checks, ACH transactions, or
electronic checks for the account. All future utility payments must be made by
cash or money order.
VI.

Roles and Responsibilities
Financial Institution or Payment Processor
Provides notification to BPU when a payment is returned due to non-sufficient funds,
a closed account, or another payment-processing issue.
BPU Billing Department
Processes returned payments, mails required notices, applies applicable fees, receives
replacement payments, updates payment restrictions, tracks repeated returned
payments, and directs service disconnection or reconnection when applicable.
BPU Field Staff
Disconnect and reconnect utility service as directed by the BPU Billing Department
and in accordance with applicable BPU policies.

VII.

Compliance and References
Minnesota Statute § 609.535: Governs the issuance of dishonored checks and legal
remedies. All mailed notices must explicitly contain the legal language outlined in this
statute.

VIII. Associated Forms and Attachments
• Standard BPU Dishonored Payment Notice Letter (including MN Statute § 609.535
disclosure language).
• Automatic Bill Payment Plan Enrollment
IX.

Review and Update Schedule
This policy will be reviewed at the time of a law change under Minnesota states or as
needed based on changes in City ordinance, code, or Commission direction.

Approval and Authority
The Brainerd Public Utilities Commission approved this policy on December 30, 2008.

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BRAINERD PUBLIC UTILITIES
POLICY 2008-15
Adopted 12/30/08

NON-SUFFICIENT FUND CHECKS AND ACH PAYMENTS
If a check made payable to Brainerd Public Utilities (BPU) is returned for nonsufficient funds (NSF) or the account has been closed, or if a customer has their
utility bill paid by (ACH) electronic transfer, or eChecks and notification is sent for
non-sufficient funds or the account has been closed, the following procedures will
take place.
•

BPU will send a notice, by regular mail, to the check issuer when a check or
ACH is returned for NSF from a financial institution. The notice shall contain
language of MN Statute 609.535 pertaining to issuance of dishonored checks.

•

Restitution has to be made within five (5) business days and must be paid by
money order or cash. There will also be an additional $30 service charge in
accordance of the BPU fee schedule. There are no arrangements allowed when a
NSF check is received.

•

If restitution is not made within the required time, the electric service will be
disconnected at the service address where the check was issued. Before the
service will be reconnected, the NSF check, $30 service charge, entire balance of
account, a deposit, if one has not been previously paid, and a reconnect fee will
have to be paid.

If more than two (2) checks or ACHs are returned to BPU within a twelve (12)
month period, all future utility payments will have to be paid by money order or
cash. However, if a customer signs up for the automatic bill payment plan in lieu of
paying the required utility deposit, and an ACH or recurring credit card is returned
to BPU within the first twelve (12) months of service, the customer
• will automatically be taken off bank pay and will have to pay the required utility
deposit, along with the other required charges.
Brainerd Public Utilities (BPU) requires customers to submit valid and collectible
payment for utility services. A payment returned or rejected because of non-sufficient
funds, a closed account, or another reason will be considered unpaid. This policy applies
to checks, electronic checks, Automated Clearing House (ACH) payments, automatic
bank withdrawals, and recurring credit or debit card payments.

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Public Utilities Commission
Agenda Request
MEETING DATE: July 28, 2026
TITLE OF ITEM: Approve Fee Amendment with HR Green - Main Lift Station Reconstruction Project
ACTION REQUESTED: Approve/Deny Motion

ESTIMATED TIME (MIN): 10 Minutes

SUBMITTED BY: Paul Sandy, Public Works Director PRESENTER: Paul Sandy, Public Works Director
SUMMARY OF ISSUE: At its November 2025 meeting, the Public Utilities Commission approved an
agreement with HR Green for design and bidding services related to the reconstruction of the Main Lift
Station. Since that approval, staff have been working with HR Green and its subconsultant, Widseth, on
the project's design and plan preparation.
ALTERNATIVE, OPTIONS, EFFECTS ON OTHERS/COMMENTS:
The environmental work and application preparation with the Minnesota Department of Natural
Resources (MnDNR) and the Federal Emergency Management Agency (FEMA) were not part of the
original contract's scope of work. However, because the existing lift station is located in the flood plain,
staff worked with HR Green on the preliminary design and on preparing the documentation required for
the Letter of Map Revision (LOMR) application submitted to FEMA for approval to reconstruct the Main
Lift Station within the flood plain. Although staff recognized this fell outside the original scope, the work
was necessary to move the project forward. HR Green and Widseth have tracked this work separately
on their invoices since the start of the project.
Since the original contract was approved, the LOMR application has been reviewed by the MnDNR and
submitted to FEMA, where review is expected to take approximately six months. HR Green and Widseth
have completed their work on this task, and staff is now bringing forward a fee amendment to cover the
time and effort spent on the LOMR application and its supporting documentation. Based on the tracked
time and materials from HR Green and Widseth, the total fee amendment is $64,000. Staff has been
monitoring invoiced amounts and additional expenses as invoices are received.

RECOMMENDED ACTION/MOTION: Staff recommends approval of a fee amendment to the agreement
with HR Green in a not-to-exceed amount of $64,000.
FINANCIAL IMPACT: The Commission approved a design and bidding budget of $494,000 as part of the
November proposal. With this fee amendment, the total fee for design and bidding services increases to
$558,000.

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2550 University Ave. West, Suite 360S |St. Paul, MN 55105
Main 651.644.4389 + Fax 651.644.9446

HRGREEN.COM

HRGreen
July 16, 2026

Mr. Paul Sandy, PE
Public Works Director
Brainerd Public Utilities
8027 Highland Scenic Rd
Brainerd, MN 56401

Subject: BPU Main Lift Station LOMR Amendment Request
Dear Mr. Sandy:
Please find attached an amendment request for effort spent completing the LOMR application for the
BPU Main Lift Station. Attached is a letter with additional details from Widseth, who has been completing
the majority of the work on the LOMR. In addition to Widseth’s efforts, HR Green has had a token effort
in coordinating meetings and providing input to the team on other recent LOMR projects.
Widseth

$64,000

HR Green, Inc.

$2,000

Total

$66,000

We would be happy to meet with you and discuss this amendment request in greater detail. We
appreciate the opportunity to provide services to the Brainerd Public Utilities on this project. Please
contact Bill Lueck at (651) 659-7704 with any comments or questions you may have.

HR Green, Inc.

CW.l Gdce&
Bill Lueck, PE
Project Manager
Enc.

Cc: Charlie Gammon-BPU; Bill Westerberg, Dan Bogart, Dave Reese-Widseth

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WiDSETH
Brainerd/Baxter

June 26, 2026
Mr. William Lueck
HR Green
2550 University Avenue W.
Suite 400N
St. Paul, MN 55114-2015
Re:

7804 Industrial Park Road
Baxter MN 56425
218.829.5117
[email protected]
Widseth.com

Brainerd Main Lift Station
Additional Services

Dear Mr. Lueck
During the design process it was identified that additional services would be needed to get City of
Brainerd, Minnesota Department of Natural Resources (DNR), and Federal Emergency Management
Agency approval for the proposed Brainerd Main Lift Station project located within the floodway of the
Mississippi River. Brainerd Public Utilities acknowledged that this was additional services and to keep
track of the effort spent to get approval for construction of the project within the floodway. The
additional services effort included the following tasks:
• Numerous meetings with DNR, City of Brainerd, BPU Staff, Design Team
• Research requirements for work within a floodway
• Preparing graphics for floodway discussions
• Determining impacts to the design
• Working with the DNR to create a model of the existing and proposed floodway
o Worked with 2 different models
 USACE Model – Corrected Effective Model (Best available data)
 FEMA Model – Duplicative Model (FIS Report model)
• Modelled area of No Rise and determined No Rise certification requirements for existing,
proposed, and floodway analysis
• Review of floodproofing rules
• Create and troubleshoot duplicate corrective model
• Identified surcharge in model and solved problem – Expanded model run length to meet
surcharge requirement calculations
• Prepare a Letter of Map Revision (LOMR) for the Brainerd Main Lift Station Project
o Required additional modelling to answer questions
o Preparing figures for LOMR in GIS
o Worked with DNR and Design Team to improve report by including important items
FEMA is looking for in the LOMR
o Prepare MT-2 Permit application forms
o Prepare hydraulic analysis report, verifying no-rise, floodway surcharge compliance, and
flood fringe placement
As of June 12, 2026, Widseth has $64,400 in fees to date for the above additional services tasks. It is
requested to amend the Brainerd Main Lift Station Project with an additional $64,000 in fees. The scope
of additional services to get approval of the LOMR is not clear. It is proposed to continue to charge
hourly for these additional services.

ARCHITECTS ■ ENGINEERS ■ SCIENTISTS ■ SURVEYORS
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If you have any questions, please contact me.
Sincerely,
WIDSETH

William K. Westerberg

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MEMORANDUM
TO:
FROM:
DATE:
SUBJ:

Mayor Badeaux and City Councilmembers
Nick Broyles, City Administrator
20 July 2026
City Administrator Report

In addition to routine administrative matters and in preparation of topics and business action items on the
Council’s work sessions and meeting agendas, the following is a summary of tasks and activities the City
Administrator’s office has been working on since the last report of 15 June 2026.
Community Engagement
15 Jun: City Council meeting
16 Jun: Better Health Collective Board of Trustees meeting
17 Jun: Staff visit w/utility service center personnel; fire department remodel progress meeting; prep for
IUOE/IBEW meeting; Wright/10th/Beech progress meeting
18 Jun: Meeting w/skate park working group; water tower discussions w/key stakeholders
22 Jun: Park board discussion w/Chair Shipe, Councilman Yeager, and select staff; continued water tower
discussions; sportsmanship committee meeting re: softball; met w/Baxter staff re: wastewater treatment
facility agreement
23 Jun: Meeting w/IUOE/IBEW
24-26 Jun: LMC annual conference in Rochester
29 Jun: Sportsmanship committee meeting re: softball; meeting w/public services foremen
30 Jun: PUC meeting; discussed transit operating grant budget w/staff; department head meeting; park
board
1 Jul: Fire department remodel progress meeting; ride-along w/streets foreman; Wright/10th/Beech
progress meeting
2 Jul: Airport Commission meeting; review council agenda w/President O’Day
6 Jul: city council meeting
7 Jul: met w/Lind Masonry at Lum park re: sidewalk project; meeting re: Etterman parcels and Trailside
park; discussed preliminary storm damage process and strategies to prepare for reimbursement
8 Jul: Wright/10th/Beech progress meeting
10 Jul: Budget preparations
13 Jul: Monthly WJJY radio show (fire department); discussed recreation programming budget w/staff;
data request discussions; job description review w/staff and one councilmember; transit discussion
w/Baxter staff
14 Jul: Met w/potential developer and staff re: city hall parking lot project; department head meeting;
business after hours at Advantage Home Pros
15 Jul: Staff visit w/fire personnel; fire department remodel progress meeting; 3rd quarter Wellness
Committee meeting; P&F/SPW agenda review meetings
16 Jul: Ronald/Joseph alley project final walkthrough; review council agenda w/President O’Day;
meeting with PW re: Lum park shower building scope and budget
17 Jul: Aliver community celebration event
Projects
1. Highway 210 Reconstruction Project
• Current construction: east mall segment (roundabouts, watermain and sewer utilities, muck
excavation, etc.); planned completion east mall segment – early/mid august
• Detour
o EB/WB 210 – Highway 25 slip ramp and 10th Avenue NE

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o EB/WB 210 to Mill Avenue – 4th Avenue NE and E Street
• Next phase: Kingwood Street to 5th Avenue NE
2. 2026 Brainerd Resurfacing Projects
• Resurfacing of Spruce Drive (Buffalo Hills Lane to S 6th Street), Graydon Avenue (Woodcrest
Road – Birchridge Drive), Hillcrest Drive, Pine Street (16th – Walnut Street). Dal-Mar Drive
and Dal-Mar Cricle, S 11th Street (Thiesse Drive to Industrial Park Road)
• Project is substantially complete and awaiting 70% perennial growth of seeded areas.
3. Beech Street/Oakridge Road
• Project is substantially complete with minor punch list items remaining.
4. Wright Street/S 10th Street
• Wright Street: substantially complete with final lift of bituminous pavement remaining. They
are awaiting the completion of S 10th Street before placing the final bituminous on the
roadway.
• Base course paving on South 0th Street is complete. Contractor will be paving wear course on
S 10th Street and Wright Street on 17 Jul.
• Completion date – Contractor on schedule to substantially complete work on S 10th Street by
early August. Punchlist and final 70% perennial growth period to commence after that point.
5. SE Brainerd Reconstruction Project
• Streets and utilities included in project include SE 17th Street, SE 18th Street, and SE 19th
Street (all Oak Street to Laurel Street), Norwood Street, Maple Street, and Laurel Street
(between SE 17th Street and SE 19th Streets).
• Preconstruction meeting held on 9 Jul.
• Upcoming schedule – clearing grubbing week of 20 Jul. Temporary water setup week of 27
Jul. Utility crews and utility replacement to commence week of 3 Aug.
• Project includes full replacement of sewer and water utilities, storm water utilities, curb and
gutter, pavement, and reconstruction of alleys.
6. Ronald/Joseph/Alley Reconstruction Project
• Project is nearing substantial completion, with pavement being placed tentatively for
Wednesday, June 10th (weather dependent). Final contractor walkthrough scheduled for 16
Jul.
7. Galvanized Water Service Line Replacement Projects
• Ronald/Joseph/Alley Galvanized Water Service Line Replacement Project: these water
service lines have been replaced (14). Project is substantially complete.
• Project No.’s 1 and 2: two projects for Galvanized Water Service Line replacements are
anticipated to commence mid- to late- July and continue through the fall of 2026.
• Projects include replacement of galvanized water service lines in conjunction with 2026 street
reconstruction and resurfacing projects as already detailed, along with a standalone water
service line replacement project in NE Brainerd on Gillis Avenue, 1st Avenue NE, and 2nd
Avenue NE. In total, the estimated number of replacements in 2026 will be around 120-130
total service lines in these areas.
• The city has over 1,000 known galvanized water service lines requiring replacement and an
additional approximate 400 unknowns that are still being verified through on-site inspections
and records verification.
8. Large Patching
• Project is complete and the final payment has been issued.
9. 2026 Sanitary Sewer Lining
• Contractor is beginning work on a smaller sanitary sewer lining project in North Brainerd
between N 5th Street and N 7th Street between Washington Street and Juniper Street.
• Contractor is awaiting delivery of additional supplies.
10. Willow Street Roundabout

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• Project is in final completion stage. Turf restoration has been accepted by the city.
11. Water Treatment Plant Reclamation Tank Project
• This project is for construction of a reclamation tank to decant backwash water used in the
water treatment plant backwashing process and send it back through the treatment process to
reduce water loss.
• Project start date is scheduled for late July 2026.
• Construction Manager at Risk is Rice Lake Construction Group with a guaranteed maximum
price for construction set at $5,300,000.
12. Other Projects
• 2026 city-wide street striping is nearing completion, with contractors working on punch list
items including missed long line and symbol striping work.
• 2026 seal coat project includes seal coating of streets (Juniper Street, N 3rd Street, N 6th
Street, N 7th Street, Tamarac Street, Sycamore Street, Rosewood Street, Vine Street, Todd
Street, Paul Street, Paul Circle, S 7th Street, S 8th Street, and Madison Street). Seal coats are
implemented by the city close to after their resurfacing or reconstruction dates (within a
couple of years) to preserve the new pavement surface to extend the life of the pavements
after resurfacing and reconstruction.
• Project work commenced and was completed from 6-10 Jul. Project is substantially complete
and awaiting final quantity determination and payment process.
Charter
The draft charter was unanimously approved by council on 4 May and will be in effect after 90 days.
Finance
• Election: 2026 is an election year with the primary on 11 Aug and the general election on 10
Nov. Filing for city offices has closed and the city will not have races on the primary ballot. Staff
and election judges are getting trained.
Streets & Sewer
• Finished final restoration, seeding and rip rap work at NW 2nd storm pond.
• Start North Town storm pond restoration work.
• Continue sewer jetting in South and Southeast Brainerd.
• Continue crosswalk painting.
• Start hauling gravel for alley repairs.
Recreation
• Great Pumpkin Festival - Contacting vendors, businesses, and volunteers for the set date of 3 Oct.
• Fall league registration continues through 3 Aug (kickball, MS2, MS1, coed softball, Competitive
pickleball, recreational pickleball).
• Preparing fall staff schedules (umpires & concession staff).
• Wellness committee planning.
• Summer leagues continue.
• Preparing playoff schedules for all leagues.
• Concessions at Memorial: Mondays-Thursdays.
• Memorial picnic shelter planning.
• Contacting other organizations on umpire pay comparisons.
• Budget planning.
• Bane Community Celebration Event- The Aliver Foundation 17 Jul.

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Parks
•
•
•
•
•
•
•
•
•

Prepping fields for baseball, softball, and soccer fields for organizations/associations and leagues.
Continuing to mulch and mow.
All epoxying is complete except for Jaycees Park concession and bathrooms.
Memorial Park playground installation scheduled for this fall (September/October), more
information to come (Recreation DNR 2026 grant not awarded to the City of Brainerd).
Lions Park at Buffalo Hills ADA sidewalk installed.
Great River Greening working on removing garlic mustard from Mississippi Landing (Evergreen
Landing).
Brainerd Lakes Goats back at Rotary Park, browsing 9-acre project southwest portion of the park.
Batting cages are fully installed at Bane and Jaycees Park.
Lum Park ADA sidewalk extension, TBD.

Transit
• Completed and submitted the 2027 Transit Operating Grant application to the Minnesota
Department of Transportation, including extensive budget development, required certifications,
supporting documentation, and grant compliance requirements.
• Completed a comprehensive Transit Financial and Operational Review for City Council,
including historical financial analysis, fare revenue trends, local funding contributions, ridership
analysis, operational data, and future financial projections to support policy discussions and longterm planning.
• Analysis of June usage data indicates rider adoption of the AI Voice system, mobile app, and
online booking portal saved an estimated 41 hours of dispatch staff time through self-service trip
booking and trip management, allowing staff to focus on customer service and operational
support.
• Transit continues exceeding MnDOT's 90% on-time performance target while maintaining strong
ridership and operational efficiency through continued scheduling optimization.
• Finalized preparations for the new partnership with Central Lakes College, expanding
transportation access for students through a new transit voucher program launching this month.
• Continued weekly operations meetings with Blue Sky Transit focused on contractor performance,
service quality, operational improvements, and contract compliance.
• Monthly MnDOT ridership and budget reporting continues to be submitted on time and accepted
without issue.
• Continued coordination with MnDOT and vehicle vendors regarding replacement transit vehicles
approved through the capital grant program.
• Preventative air conditioning maintenance was completed on the transit fleet to improve vehicle
reliability and passenger comfort during the summer season.
• Continued participation in MnDOT Procurement Office Hours to support procurement
compliance and implementation of updated purchasing requirements.
• Continued community outreach through Brainerd for All Ages (AARP) and public awareness
efforts promoting available transit services and rider resources.
• Transit continues maintaining a 99% positive rider satisfaction rating through the rider
application.
Fire
Fire station renovation is still going very well. All below grade footings, and foundation walls are
complete. All backfilling is complete and project is back to grade. Exterior walls on the east side are
going up. That work will continue for the next month. Trades are on site working on rough in where they
can.

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We were awarded the MN State Fire Marshal Extractor/Dryer grant, about $15,000. That will work into
the renovation budget.
Suspense Tracker

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July 22, 2026

HR DIRECTOR REPORT
In this report:
• Benefits Information
• Current Job Opportunities
• Personnel
• Wellness Committee

Benefits Information
Staff is expecting to receive our 2027 Better
Health Collective renewal rate information
sometime mid August. Adam Olson from North
Risk Partners believes we are tracking towards
a favorable renewal. More information to
follow.
Staff will be meeting with Bill Dehmer from
Integrity Benefits in early August to review
RFP information regarding the Life Insurance
RFP completed in June. More information to
follow.

Current Job
Opportunities
Police Officer - Offer has been made and
accepted. Candidate is going through the preemployment process
Airport Operations Manager - Offer was been
declined. Staff have reposted the position and
are now accepting applications through August
10.

Police Records Management Technician Accepting applications through July 28.
Community Service Officer - Accepting
applications through July 22.
Parks Weekend Custodial Worker - Open until
filled.
Umpire - Adult Softball - Open until filled.

Personnel
New Hires for City/HRA/Airport:
Nathan Himley - Network Administrator (7/27)
Alexander Yocum - Police Officer (8/10)
Kylie Uselman - Police Officer (8/10)
Promotions for City/HRA/Airport:
Farewell to:
Caleb Wahlstrom - Community Service
Officer (6/18)
There are currently eight City/HRA/Airport
employees with Family & Medical Leave Act
(FMLA) issues. Four of those cases are for
intermittent leave when needed.

Wellness Committee
The July Lunch N Learn took place on July 9.
Jenelle Thelen with PERA joined us to
present “From Hire to Retire”. It was a very
well attended event and we are glad staff had
the opportunity to hear first hand what
PERA’s process is.
For the month of August the Wellness
Committee will be providing staff with Root
Beer Floats! We hope all enjoy a cold sweet
treat during these hot working days!
Staff requested Council’s approval to allow
City Buildings to close for two hours on
October 1 to conduct our annual Employee
Appreciation Event. Council approved the
request and an event flyer will be prepared
and distributed next month.
Staff are collecting nominations for both the
Exceptional Service and Innovation awards.
An email was sent out to all staff on July 21
requesting nominations be submitted to HR
Director Kummet by end of day, August 14.
Staff encourage employees to submit
nominations and please reach out to HR
Director Kummet with any questions you may
have!

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Brainerd Public Utilities
Public Works Director Report
July 2026
Public Works Director Activities – June – July 2026
In addition to the discussion items on today’s agenda, I have participated in numerous staff- and consultantled meetings over the past month to advance projects currently underway. These meetings have supported
ongoing coordination, project development, and planning efforts across departments and with external
partners. Activities included the following:
Capital Projects & Construction
• Washington Street (TH 210) weekly construction progress meetings, including a dedicated meeting to
address contaminated soils and watermain issues encountered during construction
• Bi-weekly construction progress meetings for the Voyageur Heights Project
• Weekly construction progress meetings for the Beech Street/Oakridge Road and Wright Street/S. 10th
Street Projects
• Meeting with owners of the My Neighbor to Love development project on NW 3rd Street.
• Weekly construction progress meetings for the SE Brainerd Reconstruction Project.
• Library Community Access Improvements and Storage Upgrades Project pre-bid contractor meeting
and public bid opening.
• Washington Street (TH 210) Business Owner Meeting and construction update.
• Ronald/Joseph/Alley Reconstruction Project substantial completion walkthrough with Moore
Engineering and the Contractor.
Project Development & Planning
• 2029 Oak Street weekly consultant project manager and staff meetings
• Brainerd Oaks West coordination meeting with engineering consultant
• 2027 capital construction project coordination meeting with staff.
• Master Services Agreement scoping discussions for the professional engineering and architecture
services pool with the City Attorney
• Developer meetings with Community Development Department
• Meeting with HR Green to discuss scope of services for the Buffalo Hills Gully Repair Project
• Staff meetings with the Soil and Water Conservation District (SWCD) regarding the Buffalo Hills Gully
Repair Project
Utility & Infrastructure
• Meetings with Bolton and Menk and internal staff to discuss the 2026 Lead Service Line (LSL)
inventory certification to the Minnesota Department of Health (MDH)
Administration & Operations
• Weekly Brainerd Public Utilities (BPU) management team meetings
• Department Head meetings
• Safety and Public Works Agenda Review Meeting with Chair Erickson
• Waterworth implementation check-in meetings
• Meetings with various residents regarding stormwater and general construction concerns
• Onboarding of the new City Engineer, Jennifer Schumann, on July 20, 2026
• Onboarding of the new W/WW Operator Lee Anderson on July 13, 2026

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PUBLIC WORKS DIRECTOR REPORT
JULY 2026 (CONTINUED)
2026 Major Capital Construction Projects Progress and Updates
2026/2027 Highway 210 (Washington Street) Reconstruction
• Construction Progress:
R.L. Larson Excavating is actively advancing construction operations within the Phase 1 improvement
area spanning from 10th Avenue NE to 5th Avenue NE. The contractor has also mobilized into the
Phase 2A rehabilitation area, which extends from 10th Avenue NE to the eastern project termini.
Watermain and sanitary sewer installations within this phase are substantially complete. Final grading,
storm sewer work, and surface improvements are in progress with a planned completion of the phase
for early August.
• Pending Change Orders:
Staff has been engaged in ongoing discussions with MnDOT, R.L. Larson Excavating, and SRF
Consulting (design engineer) regarding necessary watermain improvements within areas of known
soil contamination along the project corridor. Specifically, these discussions have focused on areas
where Diesel Range Organics (DROs), Gasoline Range Organics (GROs), and Volatile Organic
Compounds (VOCs) have been identified. Based on MnDOT's environmental assessment findings,
these organic contaminants present a risk of material degradation to PVC watermain pipe,
necessitating a change in pipe material through the affected areas.
As a result of these discussions and consistent with MnDOT's environmental assessment, it has been
determined that Ductile Iron Pipe (DIP) will be substituted for PVC pipe in the identified contaminated
soil areas to ensure the long-term integrity and performance of the watermain infrastructure. Staff is
currently working with MnDOT and R.L. Larson Excavating to finalize unit pricing for the affected
locations. Upon completion of pricing negotiations and final cost resolution, a formal change order will
be prepared and presented to the Public Utilities Commission and City Council for review and approval
at a future meeting.
2025/2026 Beech Street/Oakridge Road
• Construction Progress:
The project is substantially complete. Landwehr Construction is currently addressing minor punch list
items to finalize the work, and the project is awaiting the establishment and maturation of perennial
grass growth in disturbed areas before final completion and acceptance can be confirmed. Staff will
continue to monitor site conditions and coordinate with the contractor to ensure all remaining items
are resolved in a timely manner. Staff sent a letter to residents about remedial efforts the City is
working on with the Contractor to obtain perennial grass growth. This letter contained small things that
residents can do to help assist in the growing process.
• Pending Change Orders:
Staff has completed a thorough review of all project documentation and disputed quantity claims
arising from the 2025 construction of the Beech Street and Oakridge Road Project. Following a
comprehensive evaluation of documentation submitted by both City staff and Landwehr Construction,
staff has prepared a detailed memorandum outlining the City's position on all disputed quantities and
outstanding extra work requests submitted by the contractor. The memorandum has been forwarded
to Landwehr Construction, and staff is currently awaiting the contractor's response.
Upon receipt of Landwehr Construction's response and the conclusion of negotiations, a final change
order encompassing all agreed-upon disputed quantities and trench backfill replacement work
performed during the 2025 construction season will be prepared and presented to the City Council for
review and approval. Finalization of the change order will allow the project to be formally closed out.

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PUBLIC WORKS DIRECTOR REPORT
JULY 2026 (CONTINUED)
2025/2026 Wright Street/S 10th Street
• Construction Progress
The Wright Street Project is substantially complete. Wear course pavement was placed on July 17,
2026. Final work items include striping, mailbox installation, punchlist items, and awaiting 70%
perennial grass growth.

•

S 10th Street is substantially complete. Wear course pavement was placed on July 17, 2026. Final
work items include striping, mailbox installation, punchlist items, and awaiting 70% perennial grass
growth.
Pending Change Orders
Landwehr Construction has not yet submitted final quantity disputes or extra work claims for the Wright
Street Project. As a result, staff has not yet had the opportunity to conduct a formal review of all related
documentation and prior correspondence between the City and the contractor. Consistent with the
approach being taken on the Beech Street and Oakridge Road Project, upon receipt of Landwehr
Construction's quantity disputes and extra work claims, staff will conduct a thorough review of all
supporting documentation, formalize the City's position in a written memorandum, and engage in
negotiations with the contractor to resolve all outstanding items. A final change order encompassing
all agreed-upon quantities and claims will subsequently be prepared and presented to the City Council
for review and approval to formally close out the Wright Street Project. Staff are also in the process of
processing a change order for turf establishment repair work completed by Doucette Landscaping the
week of July 13, 2026. This repair work consisted of inter-seeding, fertilizing, and performing watering
operations during the drought conditions. This change order will be processed along with a change
order revising the quantity of final turf establishment on Wright Street and S 10th Street, as there was
a quantity discrepancy in the plans and specifications for the project. The final quantity within the
change order will be based on actual field measurements.

Ronald/Joseph/Alley Reconstruction
• Construction Progress
The project reached substantial completion on June 15, 2026. The contractor is currently working
through final site cleanup, restoration activities, and outstanding punch list items necessary to achieve
final project completion. A substantial completion walkthrough was performed on the project on July
16, 2026.
• Pending Change Orders
None
2026 Brainerd Resurfacing Project
• Construction Progress
Project is substantially complete and awaiting 70% perennial vegetative cover from the areas that
were disturbed and seeding/stabilized during construction.
• Pending Change Orders
None
2026 SE Brainerd Reconstruction Project
• Construction Progress
The contractor, Ryan Contracting, has begun reclaiming and performing removals on the project site.
Utility work including installation of watermain, sanitary sewer, and storm sewer is planned to begin
week of July 27, 2026.
• Pending Change Orders
None

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PUBLIC WORKS DIRECTOR REPORT
JULY 2026 (CONTINUED)
2026 Galvanized Water Service Line Replacement Projects
• Construction Progress
The Galvanized Water Service Line Replacement Project associated with the Ronald Street/Joseph
Street/Alley construction area is substantially complete. Galvanized Water Service Line Replacement
Project Nos. 1 and 2 have commenced construction with planned tree removals commencing the week
of July 20, 2026. The contractor, DeChantal Excavating, will begin service line installations starting at
the SE Brainerd Reconstruction project and progress through both project areas.
• Pending Change Orders
None.
2025 Willow Street Roundabout
• Construction Progress
This project is complete. Staff are working through final documentation and federal/state aid
reimbursement documentation to be reimbursed for all eligible project related expenses.
• Pending Change Orders
None.
2026 Reclaim/Backwash Tank
• Construction Progress
Construction is planned to commence on the week of August 10, 2026. Progress meetings are
scheduled, and continued coordination through construction will commence once construction
operations begin.
• Pending Change Orders
None.
2026 Sanitary Sewer Lining
• Construction Progress
Lining of the 8-inch sanitary sewer mains within the project limits is complete. The contractor has
remobilized the week of July 20 to clean and place CIPP liner in the 10” sanitary sewer main. After the
liner is placed, televising of the final products and manhole rehabilitation will be completed.
•

Pending Change Orders
During construction, it was determined that the contractor did not mobilize sufficient liner material to
complete the full length of the 10-inch sanitary sewer main, and the original plan quantities were short
by approximately 15 linear feet of the total material needed to line the entire segment. This discrepancy
is not anticipated to require a formal change order; however, it will result in a minor overrun in the bid
quantity for 10-inch sewer main lining. The overrun will be reconciled through the final quantity
documentation and payment process at the conclusion of the project.

2026 Large Patching
• Construction Progress
The large patching project has been completed, and staff are coordinating with the contractor to
finalize project quantities.
• Pending Change Orders
None
2026 Seal Coat Project
• Construction Progress
The project is substantially complete. Staff are working through quantity reconciliation and pay
vouchers with the contractor.
• Pending Change Orders
None

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PUBLIC WORKS DIRECTOR REPORT
JULY 2026 (CONTINUED)
2026 Street Striping Project
• Construction Progress
This project is substantially complete, and staff are working with the contractor on some punchlist
areas with striping they missed and finalizing project quantities. A final contractor pay voucher will be
produced once construction operations are complete.
• Pending Change Orders
None
Continued Capital Construction Design Engineering Coordination
Design and construction activities are actively underway across both City-led capital improvement projects
and private development initiatives, with multiple efforts progressing concurrently. To maintain effective
planning, scheduling, and execution, staff continue to hold regular bi-weekly coordination meetings. These
meetings provide a structured forum to review the status of active projects, anticipate upcoming work, and
coordinate efforts across City infrastructure and development projects currently in the review and approval
process.
This coordinated approach allows staff to better align project timelines, identify cost-saving opportunities,
reduce the potential for construction conflicts, and ensure that utility improvements are efficiently integrated
with street reconstruction and resurfacing projects. Key coordination efforts include early design review, utility
layout and conflict resolution, construction sequencing, and permitting. Proactive communication planning is
also emphasized to minimize impacts to residents, businesses, and other stakeholders.
Current projects being coordinated across multiple City departments include, but are not limited to:
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•

Beech Street/Oakridge Road and Wright Street/S 10th Street Reconstruction Projects
Ronald and Joseph Alley construction coordination
Highway 210 Reconstruction Project
Lead service line replacement projects (both in conjunction with planned reconstruction/resurfacing
and as standalone utility projects)
Southeast Brainerd Reconstruction Project
2026 Street Resurfacing Project
Main Lift Station design and planning
Backwash/Reclaim CMAR Project
Willow Street Roundabout Project
Buffalo Hills Gully Repairs
2026 Sanitary Sewer Lining Project
East River Road trunkline rehabilitation project
Kuepers development project south of Woodland Hills Lane
Country Manor construction project
Brainerd Oaks West project
Coordination related to 2027 street reconstruction and resurfacing projects

Coordination across these efforts involves multiple City divisions, including engineering, utilities, public works,
planning, and administration. Activities include design integration, construction phasing, budget alignment,
and long-term asset management. This collaboration remains strong and effective, ensuring City investments
are strategically aligned, regulatory requirements are met, and infrastructure improvements are delivered
efficiently with minimal community disruption.
2026 Public Works Director Priorities and Project Progress
Pursuant to my last report, I have identified several opportunities for improvement that I plan to pursue in
2026 and updates from the previous meeting. Some of these priorities and projects include:

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PUBLIC WORKS DIRECTOR REPORT
JULY 2026 (CONTINUED)
1. Bluebeam PDF Software – Procurement of the software has been completed, and staff attended a
training session to review its capabilities. Sessions are scheduled for multiple ongoing City projects,
including developer-led and consultant-led initiatives. As staff become more familiar with Bluebeam,
the software’s tools are expected to streamline project coordination and enhance communication
across projects.
2. Pool Engineering Services – Staff continue to work with legal counsel to finalize a master services
agreement for all consultants within the approved pool.
3. Integrated Capital Improvement Planning (CIP) and Capital Asset Planning Sessions – Staff
conducted the initial long-range capital improvement planning session and established a schedule for
ongoing meetings and continued collaboration. Key deliverables from this effort will include long-range
sanitary sewer and water system plans, with the potential for incorporation into the City’s
Comprehensive Plan.
The current schedule anticipates advancing several planning initiatives throughout 2026, followed by
more detailed system modeling and analysis in 2027 once existing data gaps and modeling needs
have been identified. These efforts will support evaluation of potential future sanitary sewer capacity
upgrades, as well as watermain upsizing and looping to accommodate future development and
improve system redundancy and reliability.
4. City Standard Details and Specifications – A kickoff meeting was held with SEH on May 19, 2026 to
discuss project deliverables and schedule. The project team is working to schedule another kick-off
meeting to review the project scope, deliverables, and schedule.
5. Fats, Oils, and Grease (FOG) Control Program and Mercury Control Program – Regular check-in
meetings and ongoing correspondence between staff and SEH are occurring as the programs are
advanced through the development process. Upon completion of program development, the final
deliverables will be presented to the Public Utilities Commission for review and approval. Following
Commission acceptance, staff will proceed with implementation of the approved programs.
6. City Code 705 – Water System – The final ordinance publication is complete, and the new Water Code
705 is posted on the City website. The new code is also a part of the City’s ongoing codification
process.
7. Water Treatment Plant and Well Siting Study – Bolton and Menk continues to advance the Water
Treatment Plant and Well Siting Study. Upcoming work includes finalizing the sizing parameters for a
new treatment facility and developing conceptual site layout alternatives for Commission
consideration.
In parallel, Traut Wells is scheduled to mobilize the week of August 3, 2026 to begin the drilling of a
test well within a City-owned utility corridor located west of Buffalo Hills Park. This area was identified
through a hydrogeologic study as a potentially viable location for new municipal well construction due
to the possible presence of water-bearing sand formations capable of supporting adequate
groundwater yields. The test well will be drilled as part of the ongoing study to evaluate pumping rates
and the overall capacity of a potential municipal well at or near this location. The results of the test
well drilling will inform the next phases of the study and help guide future decisions regarding new well
development and facility siting.
8. WWTF Facility Plan and Sewer Use and Capacity Agreement between Brainerd and Baxter for Phase
1 and Phase 2 WWTF Improvements – The Wastewater Treatment Facility (WWTF) Facility Plan has
been formally submitted to the Minnesota Pollution Control Agency (MPCA) for review and is currently
awaiting agency comments.

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PUBLIC WORKS DIRECTOR REPORT
JULY 2026 (CONTINUED)
The next phase of this project is presented to the Public Utilities Commission at the June 2026 meeting
and involves the authorization of professional legal services to assist staff in initiating a structured
review of the existing Sewer Use and Capacity Agreement between the Cities of Brainerd and Baxter.
Legal counsel will conduct a cursory review of the existing agreement and prepare a written
memorandum identifying recommended updates and amendments necessary to reflect the scope and
financial implications of the planned Phase 1 and Phase 2 improvements at the WWTF.
Following completion and review of the legal memorandum by both cities' staff and legal counsel, the
Joint Wastewater Management Board (WWMB) will be convened to formally present the findings and
serve as the primary collaborative body through the amendment or re-write process. The Joint WWMB
will guide negotiations and review of the updated agreement terms, ensuring that both the City of
Brainerd and the City of Baxter are engaged transparently and collaboratively at each stage of the
process.
9. Water Treatment Facility and Wastewater Treatment Facility Risk and Resiliency Assessments and
Emergency Response Plans – The Risk and Resiliency Assessments for both the Water Treatment
Facility and the Wastewater Treatment Facility have been completed and formally certified to the U.S.
Environmental Protection Agency (EPA).
The next required phase of this effort is the preparation of Emergency Response Plans for both
facilities, which must be completed and submitted within six months of the certification of the
respective Risk and Resiliency Assessments. Staff is actively working with Bolton and Menk to develop
the Emergency Response Plans and is coordinating to ensure timely submission in advance of the
applicable deadlines.

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Brainerd Public Utilities
Electric Director’s Report
June 2026
Distribution Operations
Electric distribution crews continue to focus on maintaining a safe and reliable electric system
through routine maintenance, construction, inspections, and customer service work. Monthly
activities have included line maintenance, pole change outs, underground utility locates,
transformer replacements, new service installations, and responding to customer requests and
outages.
Staff continue monitoring system loading and balancing electrical demand across the distribution
system to improve reliability during the summer peak season.
Technical Services
Technical Services crews continues preventative maintenance on substations, protective
equipment, and the utility's metering and Scada control systems. These ongoing inspections and
testing efforts help identify potential issues before they become outages and support the long-term
reliability of the electric system.
Staff are also reviewing new service requests and working on future commercial development and
potential large-load customers.
Hydro & Renewable Generation
The hydro facility continues to operate reliably, with generation adjusted based on available river
flows. Routine inspections and maintenance are ongoing to maintain dependable operation and
maximize renewable energy production.
The Airport and Wastewater Treatment Plant solar facilities continue to perform well during the
summer months and are providing strong renewable energy production.
System Planning
Staff continue working with Crow Wing Power on service territory boundary discussions related
to the Highway 371 corridor and several other locations. These discussions are intended to improve
long-term planning, reduce future infrastructure costs, and simplify service boundaries where
practical. We are awaiting action from CWP's Board of Directors to move this project forward.

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Safety
Safety remains a top priority throughout the department. Employees continue participating in
regular safety meetings, job briefings, and equipment inspections while following established safe
work practices. These efforts help protect both employees and the public while maintaining
reliable electric service.
June Renewable Energy Production Summary
The following graphs summarize Brainerd Public Utilities' renewable energy production for June
2026 and compare it to the corresponding period in 2025.

WWTP Total MWh

Airport Total MWh

Sun Jun 28, 26

Mon Jun 29, 26

Sat Jun 27, 26

Sun Jun 28, 26

Fri Jun 26, 26

Thu Jun 25, 26

Wed Jun 24, 26

Tue Jun 23, 26

Mon Jun 22, 26

Sat Jun 20, 26

Sun Jun 21, 26

Fri Jun 19, 26

Thu Jun 18, 26

Wed Jun 17, 26

Tue Jun 16, 26

Mon Jun 15, 26

Sat Jun 13, 26

Sun Jun 14, 26

Fri Jun 12, 26

Thu Jun 11, 26

Wed Jun 10, 26

Tue Jun 09, 26

Mon Jun 08, 26

Sun Jun 07, 26

Fri Jun 05, 26

Sat Jun 06, 26

Thu Jun 04, 26

Wed Jun 03, 26

Tue Jun 02, 26

1400
1200
1000
800
600
400
200
0

Mon Jun 01, 26

Renewable MWh Comparison of each Indivially - June
2026

Hydro Total MWh

In June, Brainerd Public Utilities' renewable generation produced a total of 2,147.25 MWh,
representing approximately 34.7% of the energy consumed by our typical residential meters. The
residential comparison is based on an estimated average monthly residential energy use of 800–
1,000 kWh per meter. BPU served 6,974 residential electric meters during June 2026. Residential
meter counts are updated quarterly.
Airport Solar was the largest renewable generating resource during the month, producing 1,235.5
MWh, or approximately 20.0% of the energy consumed by our typical residential meters. WWTP
Solar produced 281.75 MWh, or approximately 4.5%, while the Hydro Facility generated 630
MWh, representing approximately 10.2% of typical residential meter consumption.

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Generation by resource was as follows:
•
•
•

Airport Solar: 1,235.5 MWh (20.0%) – the largest renewable energy source for the month,
up 325.5 MWh from last month.
Hydro: 630.0 MWh (10.2%), down 420.0 MWh from last month due to lower river flows.
WWTP Solar: 281.75 MWh (4.5%), up 56.5 MWh from last month.

Renewable Generation Asset Capacity
Brainerd Public Utilities currently has three renewable generation resources with a combined
Installed capacity of 10.172 MW
• Airport Solar: 5.7 MW
• WWTP Solar: 1.372 MW
• Hydroelectric Facility: 3.1 MW

70000
60000
50000
40000
30000
20000
10000
0

Mon Jun 01, 26
Tue Jun 02, 26
Wed Jun 03, 26
Thu Jun 04, 26
Fri Jun 05, 26
Sat Jun 06, 26
Sun Jun 07, 26
Mon Jun 08, 26
Tue Jun 09, 26
Wed Jun 10, 26
Thu Jun 11, 26
Fri Jun 12, 26
Sat Jun 13, 26
Sun Jun 14, 26
Mon Jun 15, 26
Tue Jun 16, 26
Wed Jun 17, 26
Thu Jun 18, 26
Fri Jun 19, 26
Sat Jun 20, 26
Sun Jun 21, 26
Mon Jun 22, 26
Tue Jun 23, 26
Wed Jun 24, 26
Thu Jun 25, 26
Fri Jun 26, 26
Sat Jun 27, 26
Sun Jun 28, 26
Sun Jun 28, 26
Mon Jun 29, 26

Daily Kwh Comparison of Renewables - June 2026

WWTP Daily Kwh

Airport Daily Kwh

Hydro Daily Kwh

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Mon Jun 29, 26

Sun Jun 28, 26

Sat Jun 27, 26

Fri Jun 26, 26

Thu Jun 25, 26

Wed Jun 24, 26

Tue Jun 23, 26

Mon Jun 22, 26

Sun Jun 21, 26

Sat Jun 20, 26

Fri Jun 19, 26

Thu Jun 18, 26

Wed Jun 17, 26

Tue Jun 16, 26

Mon Jun 15, 26

Sun Jun 14, 26

Sat Jun 13, 26

Fri Jun 12, 26

Thu Jun 11, 26

Wed Jun 10, 26

Tue Jun 09, 26

Mon Jun 08, 26

Sun Jun 07, 26

Sat Jun 06, 26

Fri Jun 05, 26

Thu Jun 04, 26

Wed Jun 03, 26

Tue Jun 02, 26

Mon Jun 01, 26

Daily Total Kwh of Renewables - June 2026

120000

100000

80000

60000

40000

20000

Total Renewables MWh - June 2026

2500

2000

1500

1000

500

Total Renewable MWh

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Monthly MWh Compare of renewables
2026 YTD
1800
1600
1400
1200
1000
800
600
400
200
0

Jan-26

Feb-26

Hydro Monthly MWh

Mar-26

Apr-26

WWTP Solar Monthly MWh

May-26

Jun-26

Airport Solar Monthly MWh

Previous Year – 2025

Monthly MWh Compare of renewables 2025 YTD
1400
1200
1000
800
600
400
200
0

Jan-25

Feb-25

Hydro Monthly MWh

Mar-25

Apr-25

WWTP Solar Monthly MWh

May-25

Jun-25

Airport Solar Monthly MWh

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Year-to-date, June has not surpassed May's production. May remains the highest renewable
generation month of 2026 with 3,066 MWh, while January recorded the lowest monthly production
at 1,375 MWh.

Monthly Total MWh of Renewables
2026 YTD
3500
3000
2500
2000
1500
1000
500
0

Jan-26

Feb-26

Mar-26

Apr-26

May-26

Jun-26

Combined Total MWh

Previous Year – 2025

Monthly Total MWh of Renewables 2025 YTD
3000
2500
2000
1500
1000
500
0

Jan-25

Feb-25

Mar-25

Apr-25

May-25

Jun-25

Combined Total MWh

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Together BPU Renewables produced 13,251.30 MWh YTD in 2026

Total Renewables MWh
2026 YTD
14000
12000
10000
8000
6000
4000
2000
0

Jan-26

Feb-26

Mar-26

Apr-26

May-26

Jun-26

Total MWh

Previous Year – 2025
Together BPU Renewables produced 12,597.31 MWh YTD in 2025

Total Renewables MWh 2025 YTD
14000
12000
10000
8000
6000
4000
2000
0

Jan-25

Feb-25

Mar-25

Apr-25

May-25

Jun-25

Total MWh

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Brainerd Public Utilities
Water/Wastewater Manager’s Report
July 2026

Collection System Lift Stations
Continuous operations and maintenance of wet wells, pumps, generators, and controls for the 17 lift stations are ongoing. Cleaning
and painting of main lift pumps and piping as time allows.
Wastewater Treatment Facility Operations and Maintenance
Two after hour callouts for weather related power outages and five backup alarms for communication issues.
On-going tank inspection and repairs to Sequential Batch Reactor (SBR) number four Influent valve, jet motive pump and elbows.
On-call operators tested Supervisory Control and Data Acquisition (SCADA) alarms for the Wastewater Treatment Facilities and lift
stations to ensure reliability of emergency systems.
Land Application of Biosolids Program

Appling biosolids to MPCA approved fields. Currently there are 619,000 gallons in storage. Working on the Minnesota
Biosolids Per–and Poly-fluoroalkyl Substances (PFAS) Strategy compliance consisting of PFAS sampling, required actions include
reduction efforts and communications with users. On-going and continual development of the Minnesota Biosolids PFAS Strategy
program for the approved Biosolids application sites.
Wastewater Lab Testing and Compliance
Sent June 2026 Electronic Daily Monitoring Report to Minnesota Pollution Control Agency (MPCA). Ongoing Mercury Minimization
Plan, Copper Minimization Plan, PFAS Minimization Plan, and Phosphorus Management Plan. Ongoing meetings with industries to
address Perfluorooctanesulfonate (PFOS) and what strategies to undergo to reduce PFOS. Ongoing program evaluation of delegation
requirements with Brainerd and Baxter collection systems for Significant and Categorical Industrial Users (SIU and CIU).
Public Water System (PWS) Drinking Water Testing and Compliance
Collected Compliance samples throughout the distribution system required by the Minnesota Department of Health (MDH).
Received and responded to 3 calls from residents concerning water quality in June 2026.
Emergency Generator Maintenance and Operations
Test ran Lum Park (Airport extension) water booster Lift station, Riverside water extension booster, Water plant. Evergreen Lift, Main
Lift, Southwest 6th Lift, Tyrol Lift, Walnut and Pine Lift. Portable twenty-five-Kilowatt, forty-five kilowatt, one hundred fifty kilowatt and
both Wastewater facilities generators and Godwin trash pump. Added fuel as needed. Updating the portable generator Standard
Operating Procedures (SOP’s) for standardized emergency operations as various issues arise.
Water and Wastewater Personnel
Water/Wastewater operators attended the Annual Lab training sessions for updates on the Minnesota Pollution Control Agency rules
and regulation changes held in Baxter.
June 2026 Water Pumping Statistics
Water pumped to the North distribution system was 42,941,000 gallons for an average of 1,431,000 gallons per day. Water pumped
to the South distribution system was 8,149,000 gallons for an average of 271,000 gallons per day. Chemical usage averages for the
month 3.77 gallons of fluoride per day, 0.72 gallons of caustic soda per day, 9.13 gallons of orthophosphate per day, and 30 pounds
of chlorine per day. Went through 17 filter backwash events. Backwash average of 295,000 gallons for each event.
Filtration Plant
June 2026 daily test results showed an average of 0.93 milligrams per liter of iron in the unfiltered raw water and an average of 0.02
milligrams per liter of iron in the filtered finished water, which indicates the plant is achieving an average of 97.4% removal of iron.
*Minimum standard for filtered finished water is 0.3 milligrams per liter of iron which would be 75% removal based on the unfiltered
raw concentration.
June 2026 daily test results showed an average of 0.5 milligrams per liter of manganese in the unfiltered raw water and an average
of 0.018 milligrams per liter of manganese in the filtered finished water which indicates 96.2% removal of manganese.
*Minimum standard for filtered finished water is 0.050 milligrams per liter of manganese which would be 90% removal based on the
unfiltered raw concentration.

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Calibrations and Controls onsite to calibrate flow meters in water production facilities.
Two after hour callouts for weather related power outages.
Staff replaced faulty chlorine sensor assemblies for the flow-through analyzer system.
Chart Summary for Wastewater Treatment
June 2026-2025 Total influent Flow comparisons
2026 Combined Total Flow was 55,537,000 gallons which is down 1,717,000 gallons from the previous year.
2026 Brainerd Total Flow was 34,348,000 gallons which is down 2,704,000 gallons from the previous year.
2026 Baxter Total Flow was 21,189,000 gallons which is up 987,000 gallons from the previous year.
June 2026 Influent Daily Average Flows
2026 Combined Flow was 1,851,000 gallons.
2026 Brainerd Flow was 1,145,000 gallons.
2026 Baxter Flow was 706,000 gallons.
Chart Summary for Water Production
June 2026-2025 North distribution Total flow was 42,941,000 gallons which is down 7,090,000 gallons from the previous year.
June 2026-2025 South distribution Total flow was 8,149,000 gallons which is up 1,899,000 gallons from the previous year.
June 2026-2025 Baxter’s Total flow was 0 gallons which is down 10,158,000 from the previous year.
June 2026 Daily Average Water North and South Distribution
2026 North distribution average was 1,431,000 gallons.
2026 South distribution average was 271,000 gallons.

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June 2026 - 2025 Wastewater Influent Flow Comparisons
60,000,000

50,000,000

40,000,000

30,000,000

20,000,000

10,000,000

0
June

2026 Combined
55,537,000

2025 Combined
57,254,000

2026 Brainerd
34,348,000

2025 Brainerd
37,052,000

2026 Baxter
21,189,000

2025 Baxter
20,202,000

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June 2026 Wastewater Influent Total Flows

60,000,000

50,000,000

40,000,000

30,000,000

20,000,000

10,000,000

0
June

2026 Combined
55,537,000

2026 Brainerd
34,348,000

2026 Baxter
21,189,000

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June 2026 Wastewater Influent Daily Average Flows

2,000,000

1,800,000

1,600,000

1,400,000

1,200,000

1,000,000

800,000

600,000

400,000

200,000

0
June

2026 Combined
1,851,000

2026 Brainerd
1,145,000

2026 Baxter
706,000

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June 2026-2025 Comparison Water Production Totals North and South Distribution
60,000,000

50,000,000

40,000,000

30,000,000

20,000,000

10,000,000

0
June

2026 North
42,941,000

2025 North
50,031,000

2026 South
8,149,000

2025 South
6,250,000

2026 Baxter
-

2025 Baxter
10,158,000

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June 2026 Total North and South Distribution

45,000,000

40,000,000

35,000,000

30,000,000

25,000,000

20,000,000

15,000,000

10,000,000

5,000,000

0
June

North (Distrubution)
42,941,000

South (Distrubution)
8,149,000

Baxter (North Distrubution)
0

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June 2026 Daily Average North and South Distribution

1,400,000

1,200,000

1,000,000

800,000

600,000

400,000

200,000

0
June

North (Distrubution)
1,311,000

South (Distrubution)
271,000

Baxter (North Distrubution)
0

Page 89 of 97

Page 90 of 97

Brainerd Public Utilities
Finance Managers Report
July 2026
Water Treatment Plant Educational Video
Staff met with DyingToFilm to review the final versions of BPU’s educational water videos. The completed
materials include a full water treatment plant tour, a short video featuring water facts, a short explaining where
water goes after use, and a short describing how the filter plant operates. The videos are expected to be
released during the first week of August and will be used as public education resources highlighting BPU’s
water treatment process and operations.
Streetlighting/Water/Wastewater/Electric Cost Studies
Staff continued coordinating with Utility Financial Solutions and Dave Berg Consulting LLC on the water,
wastewater, and electric cost of service studies. All requested financial and operational information has been
provided, except additional AMI usage data to support customer-class and rate analysis. Staff continue to
work on pulling together the AMI data. Staff also held the initial project meeting with Dave Berg to review the
scope, available data, study assumptions, and anticipated timeline for the electric cost of service study.
Preliminary results from the studies are expected in September and early October, with presentations
anticipated during the October Commission meeting cycle.
Waterworth
Implementation of the Waterworth budgeting and long-term financial planning software also continued during
the month. Staff have been refining the water and wastewater models to incorporate updated capital plans,
engineering information, operating assumptions, and potential funding needs. The software will be used to
evaluate long-term revenue requirements, capital funding strategies, and potential solutions to projected
financial shortfalls. Waterworth will be presenting the updated information at the Commission meeting.
Investment Tax Credit (ITC)
Staff met with Baker Tilly to discuss potential bonding options and the availability of Investment Tax Credit
funding for improvements to the hydroelectric facility. Preliminary analysis indicates that the project may
qualify for the tax credit, which could offset a portion of the overall project cost. Staff will continue working
with Baker Tilly and other advisors to confirm eligibility, quantify the potential benefit, and evaluate financing
alternatives as the project scope and costs are refined. Potential credit of 30% for the purchase of a generator.
The included handout summarizes some conversation and research that has been completed to date.
AP Automation
Staff continued working with Tyler Technologies to implement the previously approved accounts payable
automation workflow. During the month, staff met with Tyler to review system configuration, approval routing,
and implementation requirements. The project has now entered the testing phase, with full implementation
anticipated by September 1.
Storm – Preliminary Damage Assessments – State of MN
Following the severe storms during the first week of July, staff have been compiling damage information and
developing cost estimates for affected BPU infrastructure and operations. Staff have also participated in
coordination meetings and prepared supporting documentation for the State’s preliminary damage
assessment scheduled for July 23.

Page 90 of 97

Page 91 of 97

Finance Managers Report
July 2026 (Continued)
MMUA Events
Staff participated in the Minnesota Municipal Utilities Association’s Interacting on the Issues event on July 15,
which provided updates on legislative, regulatory, and advocacy matters affecting municipal utilities. Staff
also attended MMUA’s Bonding and Financing Tools for Municipal Utilities course on July 16. The course
reviewed municipal bonds and other financial tools available to fund infrastructure projects, manage debt, and
support the long-term financial stability of municipal utility operations.
Financial Results
Staff continued preparing and reviewing the 2026 financial results during the month. Following
recommendations identified through the 2025 audit and subsequent discussions with the auditors, staff are
incorporating several changes into the financial reporting process. Staff anticipate having the January 2026
financial results available for presentation first, with the remaining months to be completed and presented on
an ongoing basis.
Additional meetings are scheduled for the week following the Commission meeting to obtain further
clarification from the auditors and confirm the appropriate application of the recommended changes to the
2026 financial statements.
Information Technology Integration
Planning for the upcoming network integration continued during the month – BPU staff moving onto the city
network, does not include SCADA. Staff have participated in ongoing coordination meetings to review system
access, account transitions, operational needs, and other implementation details intended to support a
smooth transition. Additional staff meetings will continue leading up to the integration, which is scheduled to
begin during the week of August 17. By Monday August 24, staff email will change from bpu.org to
brainerdmn.gov – the migration to a dotgov domain is required by state law. Some mailboxes will remain
active with a bpu.org address on the former BPU network for business continuity, but all staff will be dotgov
including changes to Commissioner emails.
Hydro Analysis – Historic Costs
Following discussion at last month’s Commission meeting, staff prepared a three-year comparison of
hydroelectric generation costs to BPU’s existing solar energy contract costs and the applicable residential
energy charge. The analysis excludes expenses that would continue even if BPU did not own the dam.
Although those excluded expenses would be absorbed elsewhere within the utility, the remaining amounts
represent costs specifically attributable to ownership and operation of the hydro facility. NOTE: the solar
comparison reflects only the applicable solar contract energy rates.
2025
$1,102,435
12,712,000 kWh
$0.0867
11,834,391 kWh
$884,377
$0.07473
$0.08628
$152,475

Total hydro expenses
Hydro generation
Hydro cost per kWh
Total existing solar production
Total existing solar cost
Weighted average solar cost per kWh
Residential energy charge per kWh
Hydro cost above equivalent solar cost
Hydro cost above residential energy
$5,644
value

2024
$1,625,280
9,203,000 kWh
$0.1766
12,310,316 kWh
$915,773
$0.07439
$0.08598
$940,662

2023
$1,288,962
11,438,400 kWh
$0.1127
10,444,999 kWh
$716,527
$0.06860
$0.08580
$504,288

$834,006

$307,547

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Page 92 of 97

Finance Managers Report
July 2026 (Continued)
In 2025, hydro expenses totaled approximately $1.10 million and the facility generated 12.71 million kWh,
resulting in an average generation cost of 8.67 cents per kWh. BPU’s two existing solar contracts produced
approximately 11.83 million kWh at a weighted average cost of approximately 7.47 cents per kWh. The
residential energy charge was approximately 8.63 cents per kWh.
Based on 2025 hydro production, hydro generation cost approximately $152,000 more than purchasing an
equivalent amount of energy at the weighted average cost of the existing solar contracts. The hydro cost was
substantially comparable to the residential energy charge, with hydro expenses exceeding the equivalent
residential energy value by approximately $5,600.
The cost differences were greater in 2024 and 2023 due to the combination of annual hydro expenses and
generation levels. In 2024, hydro generation cost approximately $941,000 more than an equivalent amount
of energy at the weighted average solar contract cost and approximately $834,000 more than the equivalent
residential energy value. In 2023, hydro generation cost approximately $504,000 more than an equivalent
amount of solar energy and approximately $308,000 more than the equivalent residential energy value.
Over the three-year period, the hydro facility generated approximately 33.35 million kWh at a total cost of
approximately $4.02 million, resulting in an average hydro generation cost of approximately 12.04 cents per
kWh.
BPU’s two existing solar contracts provided approximately 34.59 million kWh during the same period at a total
cost of approximately $2.52 million, resulting in a weighted average solar cost of approximately 7.28 cents
per kWh. Applying the applicable weighted solar cost to hydro production in each year, hydro generation cost
approximately $1.60 million more than an equivalent amount of solar energy over the three-year period.
The equivalent residential energy value of the hydro generation totaled approximately $2.87 million during the
three-year period. Hydro expenses exceeded that value by approximately $1.15 million. This comparison
represents only the residential energy component of the rate and does not include the portion of customer
rates needed to support transmission, distribution, capacity, administration, capital improvements, system
maintenance, and other electric utility costs.
The Commission previously discussed and approved an additional solar contract with an energy rate of
$0.0875 per kWh. The contract is expected to provide approximately 21,375,720 kWh of additional renewable
energy annually. It will supplement BPU’s existing hydro and solar resources as the utility works toward
Minnesota’s 2040 carbon-free electricity requirement.
At the approved contract rate, the estimated annual energy cost is approximately $1.87 million. For reference,
the approved solar contract rate of 8.75 cents per kWh is slightly higher than the 2025 hydro generation cost
of approximately 8.67 cents per kWh and the 2025 residential energy charge of approximately 8.63 cents per
kWh. Using the 2025 residential energy charge solely as a comparison, the equivalent residential energy
value of the anticipated solar production would be approximately $1.84 million, approximately $26,000 below
the annual solar contract cost.
This analysis provides a direct comparison of renewable energy costs and the applicable residential energy
charge but does not assign a financial value to other potential benefits of dam ownership, including local
generation, generation capacity, system reliability, renewable energy attributes, operational control, or
protection against future energy market volatility.

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Page 93 of 97

ITC vs. PTC Decision Summary
600 kW Run-of-River Hydropower Project — Crow Wing County, MN

Project Snapshot
Owner / applicant

Municipal utility (tax-exempt entity)

Technology

Run-of-river hydropower

Nameplate capacity

600 kW

Estimated project cost

$5,000,000

Location

Crow Wing County, MN — Census Tract 27035951200

Energy Community status

CONFIRMED — Coal Closure Category, generating unit retirement (IRS
Notice 2023-29, Appendix C)

Turbine/generator origin

Austria — CLEARED for FEOC purposes (not a Prohibited Foreign Entity
jurisdiction)

Target placed-in-service

2030 — comfortably within the full-value begin-construction window (see
Construction Timing, p.2)

Applicable credit regime

Section 45Y (PTC) / Section 48E (ITC), technology-neutral, taxexempt/non-GHG-emitting facility

Monetization path

Section 6417 elective (“direct”) pay — cash refund from IRS, no tax
liability needed

Credit Comparison
Both credits are available; a project may elect one or the other, not both. The election is generally binding for the life of the
facility.

Investment Tax Credit (ITC — Section 48E)
One-time credit against eligible cost basis, claimed in the placed-in-service year.
Component

Rate

Credit ($5.0M basis)

Base rate (no PWA compliance)

$300,000

Base rate WITH prevailing wage & apprenticeship
(PWA)

30%

$1,500,000

+ Energy Community adder (confirmed — Tract
27035951200)

+10 pts

$2,000,000

+ Domestic content adder (status: likely NOT met
— see p.2)

+10 pts

$2,500,000 (if achieved)

Production Tax Credit (PTC — Section 45Y)
Per-kWh credit paid over a 10-year generation period. Value below assumes PWA compliance (1.5¢/kWh base) plus the
confirmed energy community adder (+10%). Actual capacity factor should be confirmed against a flow-duration study.
Capacity factor

Annual generation

10-yr PTC (base + PWA + energy
community)

35% (low)

1.84M kWh/yr

~$331,000

45% (mid)

2.37M kWh/yr

~$426,000

55% (high)

2.89M kWh/yr

~$521,000

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Page 94 of 97

Recommendation
At this cost-to-output ratio (~$8,300/kW), the ITC substantially outperforms the PTC — roughly $2.0M up front vs. an
estimated $330K–$520K spread over 10 years (undiscounted). The gap widens further once the PTC stream is discounted
to present value. The ITC is the stronger fit for a capital-intensive, modest-output run-of-river project.

Open Items Before Filing
●
●
●
●

●

Confirm eligible cost basis — not all of the $5.0M project cost may qualify as “energy property” (e.g., certain land and
financing costs are typically excluded).
Obtain an engineering flow-duration analysis to replace the illustrative capacity-factor range above, if PTC is
reconsidered.
Confirm prevailing wage & apprenticeship (PWA) compliance plan for construction — required to access the 30% base
rate; without it the ITC falls to 6%.
Domestic content adder is likely NOT achievable: the turbine/generator package is sourced from Austria, and
manufactured-product cost is typically dominated by this equipment. The 100% domestic steel/iron test may be met
through U.S. civil works, but the manufactured-products percentage test (45–50% threshold) is unlikely to be met
without a domestic turbine/generator. This is a cost/sourcing decision, not a compliance risk.
Plan Section 6417 direct-pay filing timeline: ITC refund is claimed as a lump sum in the placed-in-service year —
coordinate with interim construction financing and debt service planning.

FEOC Status — CLEARED
The turbine/generator manufacturer is based in Austria. Austria is not a Prohibited Foreign Entity (PFE) jurisdiction — only
China, Russia, North Korea, and Iran trigger FEOC restrictions. Accordingly, the material-assistance cost-ratio test, effectivecontrol payment restrictions, and FEOC-related direct-pay/transferability limits do NOT apply to this project. No further FEOC
screening is required unless the sourcing plan changes.

Construction Timing
Hydropower is not subject to the wind/solar placed-in-service cliff (Dec. 31, 2027). Instead, non-solar/wind technologies —
including hydro — qualify for the FULL credit value as long as construction begins by December 31, 2033 (phasing to 75% for a
2034 start, 50% for 2035, and eliminated for 2036 and later).
The project's target placed-in-service date of 2030 implies a begin-construction date well before the 2033 cutoff — comfortably
inside the full-value window under current law. No statutory timing risk to the credit rate itself; remaining timing considerations
(e.g., PWA compliance planning, direct-pay registration cadence) are operational, not eligibility-threatening.
Prepared for internal discussion purposes only — not tax or legal advice. Figures are illustrative based on preliminary project parameters and current IRS
guidance (Notice 2026-39 and predecessor notices) as of mid-2026. Will need to Confirm final calculations with tax counsel prior to filing.

Page 94 of 97

Page 95 of 97

Brainerd Public Utilities
Calculation of Net Benefit of Hydro Generation
For the Year Ended December 31, 2026

Total Hydro Generation - kWh
Blended AEP Cost
Calculated Benefit

January
February
March
April
May
985,000
918,000
1,125,000
1,608,000
1,498,000
0.08153 $
0.07578 $
0.09151 $
0.08662 $
0.10561 $
80,307.05
69,566.04
102,948.75
139,284.96
158,203.78

June
667,000
0.10000
66,698.63

July

August

September

October

November

December
$

Total
6,801,000
0.0902
617,009.21

Brainerd Public Utilities
Calculation of Net Benefit of Hydro Generation
For the Year Ended December 31, 2025

Total Hydro Generation - kWh
Blended AEP Cost
Calculated Full Benefit

January
February
1,021,000
917,000
0.06472 $
0.07869 $
66,079.12
72,158.73

March
1,002,000
0.08077 $
80,931.54

April
May
968,000
1,252,000
0.08472 $
0.08864 $
82,008.96
110,977.28

June
July
August
September
October
November
December
Total
1,094,000
1,242,000
1,213,000
992,000
1,032,000
978,000
1,001,000
12,712,000
0.09010 $
0.08977 $
0.08937 $
0.08497 $ 0.07107 $ 0.08715 $
0.09806 $
0.08400
98,569.40
111,494.34
108,405.81
84,290.24
73,344.24
85,232.70
98,158.06
1,071,650.42

Page 95 of 97

Page 96 of 97

Packet Summary Budget Report
Group Summary

Brainerd Public Utilities, MN

For Fiscal: 2026 Period Ending: 07/31/2026

Original
YTD Budget

Current
YTD Budget

Period
Activity

Fiscal
Activity

Variance
Favorable
Percent
(Unfavorable) Remaining

Fund: 1 - ELECTRIC Surplus (Deficit):

17,590,465.13
17,070,025.42
520,439.71

1,852,038.04
1,805,221.29
46,816.75

14,476,811.20
12,781,614.00
1,695,197.20

-3,113,653.93
17.70 %
4,288,411.42
25.12 %
1,174,757.49 -225.72 %

Fund: 2 - WATER Surplus (Deficit):

2,774,914.59
2,746,626.96
28,287.63

324,033.89
239,337.45
84,696.44

2,397,993.73
1,596,256.96
801,736.77

-376,920.86
13.58 %
1,150,370.00
41.88 %
773,449.14 -2,734.23 %

Fund: 3 - WASTEWATER TREATMENT
Revenue
Expense
Fund: 3 - WASTEWATER TREATMENT Surplus (Deficit):

3,137,777.72
3,067,247.82
70,529.90

337,783.92
156,882.30
180,901.62

3,927,486.74
1,433,679.31
2,493,807.43

789,709.02
25.17 %
1,633,568.51
53.26 %
2,423,277.53 -3,435.82 %

Fund: 4 - HYDRO DAM Surplus (Deficit):

7,696.92
484,910.86
-477,213.94

0.00
52,706.06
-52,706.06

1,123.21
351,207.62
-350,084.41

Report Surplus (Deficit):

142,043.30

259,708.75

4,640,656.99

Account Typ…
Fund: 1 - ELECTRIC
Revenue
Expense
Fund: 2 - WATER
Revenue
Expense

Fund: 4 - HYDRO DAM
Revenue
Expense

7/24/2026 12:27:49 PM

-6,573.71
133,703.24
127,129.53

85.41 %
27.57 %
26.64 %

4,498,613.69 -3,167.07 %

Page 1 of 2

Page 96 of 97

Page 97 of 97

Packet Summary Budget Report

For Fiscal: 2026 Period Ending: 07/31/2026

Fund Summary

7/24/2026 12:27:49 PM

Fund

Original
YTD Budget

Current
YTD Budget

Period
Activity

Fiscal
Activity

Variance
Favorable
(Unfavorable)

1 - ELECTRIC
2 - WATER
3 - WASTEWATER TREATMENT
4 - HYDRO DAM
Report Surplus (Deficit):

520,439.71
28,287.63
70,529.90
-477,213.94
142,043.30

46,816.75
84,696.44
180,901.62
-52,706.06
259,708.75

1,695,197.20
801,736.77
2,493,807.43
-350,084.41
4,640,656.99

1,174,757.49
773,449.14
2,423,277.53
127,129.53
4,498,613.69

Page 2 of 2

Page 97 of 97

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