09.g City Administrator Report1
Staff Report
Date of Meeting: June 17, 2025, City Council Meeting
To: Mayor and City Council
From: Kyle Morell, City Administrator
Re: City Administrator Report
______________________________________________________________________________
Gateway Trail Project
City Engineer Ryan Goodman and I met with Nathan Moe and Kent Skaar from the Minnesota
Department of Natural Resources (DNR) on Monday, July 10, 2023. We discussed the next steps in the
work plan, including the environmental review, soil borings, and topographical survey. Ryan and the
DNR are working to complete these items before the end of the year. This group plans to meet monthly
to ensure the project stays on schedule.
The LCCMR funding has a hard deadline of June 30, 2027. All spending must be completed before that
date. The City plans for 2026 construction to complete the project before the grant funding disappears.
Our DNR Grant Administrator has also contacted me. LCCMR administers the project, and the funding
comes from the DNR.
The latest funding updates are close to $700,000 over previous estimates. This is primarily due to
changes in unit pricing for the original estimates in 2019 and 2021, as well as adjustments to the
project's scope. Project Engineer Isiah Bubany detailed this increase in a memo at the March 18, 2025,
City Council meeting.
A public information meeting was held at the Community Center on Wednesday, June 11, 2025.
Representatives from the City, County, and DNR were present, along with between 30 and 40 residents.
The meeting went well; it was a little contentious at times, but all resident questions were answered.
Concern was raised about the fiscal responsibility of building a trail that does not connect to any existing
infrastructure. There was also frustration over the project's cost, related to the requirement for a tunnel
under Oakhill Road. Some of the residents present suggested that the grant money go unused and the
project be delayed until the trail from William O’Brien Park is completed. At this point, the only way to
delay the project would be for the City Council to vote to cancel the City’s participation. The Council
will receive an update on the Gateway Trail at its July 2 work session.
2
Water Tower Barn Wetland Trail Project
The City’s LCCMR proposal was selected to move forward in the review process. I presented it to the
LCCMR committee on June 28. The Committee met on July 31 to determine funding amounts for all
projects. The City received $907,000 of the $998,000 it requested. The request will now be moved into
the LCCMR bill that will be presented to the Legislature for approval in this upcoming session. If
approved, we have until 2028 to complete the project.
The LCCMR bills are advancing through the House and Senate. Approval is expected before the end of
the 2025 Legislative session.
At the March 5, 2025, Work Session, the Council approved soil boring work for the wetland boardwalk.
I have submitted the final work plan for this project on June 11. The project status is currently listed as
“recommended for funding” on the LCCMR website. We anticipate it will be updated to “funded” once
the Governor signs the bill.
Bliss Sewer Project
The Legislature met on Monday in a Special Session to approve all remaining budget bills. While a
bonding bill was approved, it included no local projects. The Legislature did approve $200 million for
water and sewer infrastructure. The City has been assured that this level of funding is sufficient to fund
the Bliss project this year. However, I have yet to verify this claim.