Council approves Wilmar Connect contracts after hours-long debate over costs and pro forma

The Willmar City Council voted to approve two professional-services items tied to the Wilmar Connect phase 1 broadband project after extended debate over project costs and pro forma assumptions.

Operations Director Kyle Fox asked the council to authorize an amendment with Bolton & Mink for construction management and oversight at a cost of $520,393 and a separate, not-to-exceed $400,000 professional-services contract with Hometown Fiber to provide technical telecommunications oversight, network operations center (NOC) planning and testing and documentation services. Fox said both items would be paid from the project construction bond fund rather than the city’s industrial-park operating fund.

The Bolton & Mink amendment passed on a roll-call vote, 5–2. During discussion a council member sharply questioned why roughly $1.25 million already spent on the project would not be reimbursed from bond proceeds and expressed frustration that the current pro forma the council had previously seen had been revised, making it harder to compare earlier assumptions to the updated numbers. "We're deep in the monkey house right now," the council member said, criticizing what they described as the accumulation of unanticipated costs and added that the council was being asked to approve roughly $900,000 in additional professional services after prior decisions.

Fox and staff defended the approach, saying some earlier project costs were intentionally excluded from the reimbursable bond amount to preserve debt capacity and that the $520,393 and $400,000 amounts were accounted for in the bond request under the construction fund. "Removing the industrial park from phase 1 was recommended to reduce overall scope while maintaining project integrity," Fox said, adding the bond package includes contingency and that the construction fund figure may change with final ratings and sale conditions.

Council member concerns focused on the cumulative spending to date and whether the pro forma still supported the long-term financial assumptions. One member pressed whether the professional services being approved would duplicate testing required in the bid specifications, noting a risk of paying for the same test results twice. Kyle Fox and City Engineer Jared Veil responded that contractors are typically required to meet testing specifications and that third-party verification and Hometown Fiber’s testing work would be complimentary and focused on verification, GIS documentation and NOC readiness.

The Hometown Fiber agreement also drew questions about travel and per-diem charges in the proposal. A council member asked why the overnight per-diem in the proposal was $200, noting the federal GSA per-diem rate would be lower; Fox said the $400,000 figure reflected negotiation and a reduction from an earlier $450,000 proposal and that the contract could limit travel or require virtual meetings when feasible. Fox added that the Hometown Fiber scope includes OTDR testing, splice documentation, NOC HVAC and surge protection planning, and coordination with internet service providers to ensure the network is operable when activated.

The Hometown Fiber contract passed by roll call, 5–2. Supporters said these technical services are needed to ensure reliable buildout and NOC commissioning; dissenting council members argued the city was incurring significant ongoing professional costs and questioned whether all work was fully reflected in publicly shared pro forma versions.

What happens next: staff said the Bolton & Mink and Hometown Fiber tasks will proceed as scoped and that the council will see future change orders and bond-sale details as the project moves toward construction and commissioning.