City Council Meeting

CITY COUNCIL MEETING MINUTES Tuesday, December 17, 2024 at 7:00 PM Baxter City Hall, 13190 Memorywood Drive, Baxter, MN “A Growing Community” CALL TO ORDER Mayor Olson called the meeting to order at 7:00 p.m. ROLL CALL Mayor Darrel Olson and Council Members Connie Lyscio, Zach Tabatt, Jeff Phillips, and Mark Cross were present. City Administrator Brad Chapulis, Assistant City Administrator Kelly Steele, Assistant Police Chief Matt Maier, Public Works Director Trevor Walter, Finance Director Jeremy Vacinek, and Community Development Director Josh Doty were present. PLEDGE OF ALLEGIANCE All joined Mayor Olson in reciting the Pledge of Allegiance. PRESENTATIONS None. ADDITIONS OR CHANGES TO THE AGENDA None. PUBLIC COMMENTS - Comments received from the public may be placed on a future meeting agenda for consideration. None. CONSENT AGENDA - The following items are considered non-controversial by staff and are recommended to be read and passed in one motion. Any council person, staff, citizen, or meeting attendee can request one or more items be pulled from the Consent Agenda and the item will be pulled and addressed immediately after the passage of the Consent Agenda; otherwise, the following items will be passed in one motion: 1. Approve City Council Special Minutes from December 2, 2024 2. Approve City Council Work Session Minutes from December 3, 2024 3. Approve City Council Minutes from December 3, 2024 4. Approve the Payment of Bills and Finance Report (Addendum A) 5. Approve 2025 Meeting Calendar for City Council and Commissions 6. Adopt Resolution 2024-098 Approving the Sales of Lot 4, Block 2, Cedar Scenic Second Addition & Lot 7A/7B, Block 1, Northdale Sixth Addition and Authorize the Mayor to Execute All Necessary Documentation Related to the Sale 12/17/2024 City Council Meeting Minutes Page 2 7. Appoint Joseph Sundgaard to the Patrol Sergeant Position at Grade 15, Step 4 8. Accept the Utilities Commission Minutes from December 4, 2024 9. Approve the True North Controls Quote in the Not-to-Exceed Amount of $13,000 for Onsite Communication Controls 10. Approve the J.R. Ferche, Inc. Final Pay Estimate No. 6 in the amount of $71,800.77 for the Whiskey Creek Stormwater Improvements Project, Municipal Project Number 200292 11. Approve the MNL, Inc. Partial Pay Estimate No. 2 in the amount of $6,270.00 for the Whiskey Creek Stormwater Improvements Project, Municipal Project Number 200292 12. Approve the Thein Well Company Final Pay Application 1 in the amount of $158,341.50 for the 2024 Well Rehabilitation Project 13. Approve SEH Fee Amendment No. 1 in the Not To Exceed Amount of $27,600.00 for additional engineering services related to the 2024 Well Replacement Exploration project 14. Approve the RL Larson Excavating, Inc. Change Order No. 7 in the increased amount of $17,015.82 for the 2024 South Forestview Improvements Project, Municipal Project No. 4138 15. Approve RL Larson Excavating, Inc Partial Pay Estimate No. 8 in the amount of $52,827.76 for the 2024 South Forestview Area Improvements Project, Municipal Project No. 4138 16. Approve the Anderson Brothers Construction Partial Pay Estimate No. 12 in the amount of $20,234.18 for the 2023 Commercial and Residential Full Depth Reclamation and Quiet Zone Improvements Project 17. Approve the Knife River Corporation – North Central Final Pay Estimate No. 9 in the amount of $38,330.15 and amend the project budget in the increased amount of $5,657.73 from $2,376,379.07 to $2,382,036.80 for the 2023 Knollwood Drive Improvements Project, Municipal Project Number 4132 18. Approve the Pratt’s Affordable Excavating, Inc. Change Order 1 in the increased amount of $4,656.70 for the CSAH 77 Utility Improvements Project, Municipal Project Number 4118 19. Approve Pratt’s Affordable Excavating, Inc. Partial Pay Estimate No. 2 in the amount of $79,864.86 for the 2024 CSAH 77 Utility Improvements Project, Municipal Project 4118 20. Approve the Widseth Proposal for Professional Construction and Post Construction Services in the Not to Exceed Amount of $83,320.00 for the 2024 CSAH 77 Utility Improvements Project, Municipal Project 4118 21. Approve the Knife River Corporation – North Central Partial Pay Estimate No. 7 in the amount of $153,512.83 for the 2024 Mill & Overlay and Full Depth Reclamation Improvements Project, Municipal Project Number 4424 22. Adopt Resolution No. 2024-096 Ordering Preparation of Report for the 2025 Design Road & TH 371 Stormwater Improvements Project Municipal Project No. 4315 12/17/2024 City Council Meeting Minutes Page 3 23. Approve the Anderson Brothers Construction Change Order No. 4 in the increased amount of $2,887.50 and Increase the Project Budget $2,887.50 from $266,290.30 to $269,177.80 for the Lift Station No. 13 Reconstruction Project 24. Approve the Anderson Brothers Construction Partial Pay Estimate 4 (Final) in the amount of $3,887.50 for the Lift Station No. 13 Reconstruction Project 25. Authorize Execution of a Revised Agreement between the Minnesota Department of Revenue and the City for Collection of the Local Sales and Use Tax 26. Adopt Resolution 2024-099 approving the preliminary and final plat of “Baxter Storage” located in the southeast corner of Pine Beach Road and Inglewood Drive 27. Adopt Resolution 2024-101 Setting the 2025 Fee Schedule 28. Adopt Resolution 2024-102 Approving the 2025 Property Tax Levy of $9,300,600 29. Adopt Resolution 2024-103 Approving the 2025 Governmental Funds Budget of $16,752,600 30. Accept the Planning Zoning Commission Minutes from December 10, 2024 31. Adopt Resolution 2024-100 approving a Conditional Use Permit Amendment to allow an expansion of the homeless and recovery resource center located at 8055 Industrial Park Road 32. Approve Releasing the Riverwood Bank Development Agreement contingent on entering into a Stormwater Facilities Maintenance Agreement and Approve the Riverwood Bank Stormwater Facilities Maintenance Agreement 33. Approve Appointments to the Seasonal Position of Warming House Attendant MOTION by Council Member Cross, seconded by Council Member Lyscio to approve the consent agenda. Motion carried unanimously. PULLED AGENDA ITEMS Council Member Tabatt asked to pull agenda item 4. Council Member Tabatt explained this agenda item was previously discussed in June based on comments made by Council Member Phillips. Currently there is no clear resolution on this agenda item, including the resolution drafted by the city attorney. At a minimum by March 1st, if there is no agreement, the city should pause payment as the city needs to meet our own accountability standards. The council discussed the city’s ability to make payment without an agreement in place. City Administrator Chapulis explained a resolution will be prepared for the first meeting in January. MOTION by Council Member Tabatt, seconded by Council Member Cross to hold payment to Visit Brainerd until after the first council meeting in January where a basic resolution will be presented that provides the city with authority to issue payment and that a formal resolution will be completed by March 1, 2025. Motion carried with Council Members Lyscio, Tabatt, Cross and Mayor Olson voting yes and Council Member Phillips voting no. 12/17/2024 City Council Meeting Minutes Page 4 MOTION by Council Member Cross, seconded by Council Member Tabatt to Approve the Payment of Bills and Finance Report (Addendum A). Motion carried unanimously. Council Member Phillips asked to pull agenda item 33. MOTION by Council Member Cross, seconded by Council Member Tabatt to Approve Appointments to the Seasonal Position of Warming House Attendant. Motion carried with Council Member Lyscio, Tabatt, Cross and Mayor Olson voting yes and Council Member Phillips abstaining. OTHER BUSINESS 34. Adopt Ordinance 2024-018 amending the Zoning Ordinance to allow Cannabis Uses Community Development Director Doty explained the proposed ordinance amends Title 10, Chapter 2 and Chapter 3 to allow cannabis use. Minnesota state law requires local units of government to amend their city code to implement requirements of Chapter 342 of Minnesota Statutes. Cannabis applicants apply to the state for a license and once vetted, the business would be required to gain local government approval. At the December 3, 2024 council work session, the council provided feedback to have a retail store cap of two or three stores. Staff confirmed with the city attorney that the council can select a specific store cap above one retail store. The city attorney stated that a conservative approach to the number of retail stores is common with other cities. The council can always increase the number of stores or remove the cap. However, it would be more difficult to reduce the number of stores. Staff have provided two versions of the proposed ordinance for council consideration. Ordinance option A is the planning commission recommendation of allowing one retail store based on the city’s current population. Ordinance option B allows two retail stores. MOTION by Council Member Cross, seconded by Council Member Tabatt to Adopt Ordinance 2024-018, option B, amending the Zoning Ordinance to allow Cannabis Uses, excluding the summary portion of the ordinance. Motion carried with Council Members Tabatt, Phillips, and Cross voting yes and Council Member Lyscio and Mayor Olson voting no. Community Development Director Doty explained a summary of the ordinance can be published to reduce publication expenses of the full ordinance. To publish a summary of the ordinance a 4/5 vote by the council is required. MOTION by Council Member Cross, seconded by Council Member Lyscio to approve the summary ordinance for publication. Motion carried unanimously. 35. Adopt Ordinance 2024-019, Creating City Code Title III Chapter 21: Cannabis and Low-Potency Hemp Edible Business Registration Assistant City Administrator Steele explained the state Office of Cannabis Management (OMC) will issue cannabis licenses, and the city will issue registrations to those license holders. The OMC will forward applications to the cities for them to certify the proposed cannabis business complies with local zoning standards. Before a cannabis business can start retail sales, it will be required to register with the city. The city is required to issue a retail registration to a business that has a valid license from the OMC, paid the city’s registration fee, is compliant with local zoning standards, and is current on all property taxes and assessments at the location where the retail locations is located. 12/17/2024 City Council Meeting Minutes Page 5 The Baxter police department will be required to conduct compliance checks on the retail cannabis businesses. The penalties for failing compliance checks have been set to mirror current code language related to liquor and tobacco. The proposed ordinance provides for two registrations in Baxter. The cannabis registration fees will be established in the 2025 fee schedule, scheduled to be adopted in early 2025. MOTION by Council Member Tabatt, seconded by Council Member Lyscio to Adopt Ordinance 2024-019, Creating City Code Title III Chapter 21: Cannabis and Low-Potency Hemp Edible Business Registration. Motion carried unanimously. Patrick Sundberg, with Jack Pine Brewery, urged the council to adjust the closing time in the ordinance from 9pm to 10pm to align with liquor sales and expressed concerns with the ordinance language that indicates cannabis product cannot be visible from the exterior of the building. MOTION by Council Member Tabatt, seconded by Council Member Lyscio to adjust the ordinance to reflect the closing time to be 10 p.m. Motion carried unanimously. COUNCIL COMMENTS 36. Connie Lyscio – Thanked Council Member Phillips for his service to the city. 37. Zach Tabatt - Thanked Council Member Phillips for his service to the city. 38. Jeff Phillips - No comment. 39. Mark Cross – Explained he will miss Council Member Phillips and wished everyone a Merry Christmas. 40. Darrel Olson – Expressed appreciation for Council Member Phillips stepping forward to serve on the city council. CITY ADMINISTRATOR'S REPORT City Administrator Chapulis expressed appreciation for Council Member Phillips, who stepped forward during a vacancy on the council, and provided a reminder that city hall will be closing at noon on Christmas Eve and will be closed on Christmas day and New Years Day. CITY ATTORNEY'S REPORT 41. Closed Session Under Minnesota Statutes § 13D.05, Subd. 3 (c), Purchase of Temporary Easement Rights across PID: 40050532, 40050721, 40050606, 40050608, 40050609, 40050613, 40050614, 40050615, 40050617, 40050719 MOTION by Council Member Cross, seconded by Council Member Lyscio to enter into a closed session at 7:51 p.m. Motion carried unanimously. MOTION by Council Member Cross, seconded by Council Member Tabatt to return to an open session at 8:04 p.m. Motion carried unanimously. 12/17/2024 City Council Meeting Minutes Page 6 MOTION by Council Member Cross, seconded by Council Member Phillips to direct Widseth to present the initial construction easement documents and to negotiate as discussed. Motion carried unanimously. ADJOURN MOTION by Council Member Lyscio, seconded by Council Member Tabatt to adjourn at 8:05 p.m. Motion carried unanimously. Approved by: Respectfully submitted, _____________________________ Darrel Olson Kelly Steele Mayor Assistant City Administrator