City Council Meeting

CITY COUNCIL MEETING MINUTES Tuesday, September 16, 2025 at 7:00 PM Baxter City Hall, 13190 Memorywood Drive, Baxter, MN “A Growing Community” CALL TO ORDER Vice Mayor Cross called the meeting to order at 7:00 p.m. ROLL CALL Vice Mayor Mark Cross and Council Members Connie Lyscio and Patrick Sundberg were present. Mayor Darrel Olson and Council Member Zach Tabatt were absent. City Administrator Brad Chapulis, Assistant City Administrator Kelly Steele, Finance Director Jeremy Vacinek, Community Development Director Josh Doty, Public Works Director Trevor Walter, and Police Chief Matt Maier were present. PLEDGE OF ALLEGIANCE All joined Vice Mayor Cross in reciting the Pledge of Allegiance. PRESENTATIONS None. ADDITIONS OR CHANGES TO THE AGENDA City Administrator Chapulis explained the staff report for consent item 13 has been amended and consent item 35 has been added to the agenda. PUBLIC COMMENTS - Comments received from the public may be placed on a future meeting agenda for consideration. Matt Kilian, President Brainerd Lakes Area Chamber, asked to make comments related to the TH 371 project. The hope was that MnDOT would include some of the comments made by the business community in the final design. However, they did not incorporate any of the suggestions. The Baxter business community’s mood is that they feel disregarded and disrespected. The hope is to find a solution that works for the business community. Vice Mayor Cross explained the council should hold a work session to hear the alternatives recommended by the business community. MnDOT should be invited to the meeting to hear the recommendations. Mr. Kilian explained he would like to suggest two or three things to change on the project. Sarah Kincade, Frandsen Bank and Trust, stated they are the easiest bank to currently access but after the project they will be the hardest bank to access. Ms. Kincade asked the city to purchase their building and ask what it would feel like to be in their location after the construction. Evette Campbell, a Baxter resident and represents Bremer Bank, stated we have such a vibrant community and the impact to Bremer Bank is how the project will impact the businesses that bank at Bremer Bank. There is a far- reaching ripple effect from the project. 9/16/2025 City Council Meeting Minutes Page 2 Kevin Stumpt, Fairview Road property owner, explained he has a contract for deed on this Fairview Road property and he is concerned with access to the property and high vehicle speeds. Katie Watland Goenner, Watland Hospitality, explained she has attended several council meetings, and she would like to hear how this project is going to make the city better. Ms. Goenner inquired with Crow Wing County about property tax impacts, but the county did not have an answer. Ms. Goenner also asked MnDOT several times about how the project will impact Woida Road and MnDOT insists there will not be any problems with Woida Road. 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 Work Session Minutes from September 2, 2025 2. Approve City Council Minutes from September 2, 2025 3. Approve the Payment of Bills and Finance Report (Addendum A) 4. Approve the Tretter Trucking & Excavating, Inc. Partial Pay Estimate No. 3 in the amount of $51,632.90 for the 2025 Clearwater Road Dog Park Project 5. Accept the Utilities Commission Minutes from September 3, 2025 6. Approve the Stormwater Facilities Maintenance Agreement with Access Rights and Covenants for Lakewood Evangelical Free Church 7. Approve Chick-Fil-A Escrow Agreement for Inspection Services and Asbuilts 8. Approve the Chick-Fil-A Stormwater Facilities Maintenance Agreement 9. Approve ASTECH Corporation Change Order No. 1 in the increased amount of $49,027.15 for the 2025 Micro Surfacing Project Update 10. Approve ASTECH Corporation Partial Pay Estimate No. 1 in the amount of $447,455.65 for 2025 Micro Surfacing Project 11. Approve the Bolton & Menk Fee Amendment No. 1 in the Not to Exceed Amount of $3,450 for a Total Revised Not to Exceed Amount of $50,844.00 for Professional Services Related to the 2025 Micro Surfacing Project 12. Approve RL Larson Excavating, Inc. Partial Pay Estimate No. 12 in the amount of $71,241.80 for the 2024 South Forestview Area Improvements Project, Municipal Project No. 4138 13. Approve the Pratt’s Affordable Excavating, Inc. Change Order 1 in the increased amount of $11,269.65 for Contract B related to the 2025 Water Supply Improvements - Wells 5 & 6 Project, Municipal Project No. 6011-45040 14. Approve Pratt’s Affordable Excavating Inc. Partial Pay Estimate No. 4 in the amount of $92,717.82 for work completed on Contract B related to the 2025 Water Supply Improvements – Wells 5 & 6, Municipal Project No. 6011-45040 9/16/2025 City Council Meeting Minutes Page 3 15. Approve the Knife River Corporation – North Central Change Order No. 8 in the Increased Amount of $12,643.71 for the 2024 Mill & Overlay and Full Depth Reclamation Improvements Project, Municipal Project Number 4424 16. Approve the Knife River Corporation – North Central Partial Pay Estimate No. 10 in the amount of $16,896.58 for the 2024 Mill & Overlay and Full Depth Reclamation Improvements Project, Municipal Project Number 4424 17. Approve the Anderson Brothers Construction Company Change Order No. 1 in the Increased Amount of $3,650.90 and modify the Substantial and Final Completion Dates for the 2025 Commercial Full Depth Reclamation Improvements Project, Municipal Project Number 4425 18. Approve the J.R. Ferche, Inc Change Order No. 1 in the Increased Amount of $72,166.00 for the 2025 Design Road & TH 371 Stormwater Improvements Project, Municipal Project Number 4135 19. Approve the J.R. Ferche, Inc Partial Pay Estimate No. 1 in the amount of $292,603.86 for the 2025 Design Road & TH 371 Stormwater Improvements Project, Municipal Project Number 4135 20. Approve the Tom’s Backhoe Service, Inc. Partial Pay Estimate No. 1 in the amount of $117,444.94 for the Lift Station No. 17 Reconstruction Project 21. Approve Appointment to the Seasonal Position of Park Attendant 22. Appoint James Lueck to the Streets and Utilities Supervisor Position at Grade 15, Step 2 of the Non- Union Employee Schedule 23. Approve 2025-2026 Contract for Chamber of Commerce Services 24. Approve Flaherty & Hood Proposal for Legislative Services of the Pursuit of a Sales Tax Extension 25. Set the initial Lower-Potency Hemp Edible Retailer Registration Fee 26. Approve Revision to Special Assessment Hardship Deferral Criteria 27. Approve 2026 Delayed Payment of Tax on Special Assessments for Applicants with Eligible Hardships 28. Adopt Resolution 2025-080, Setting the 2025 Improvement Projects Final Special Assessment Interest Rate and Financing the Projects in 2026 29. Accept Planning and Zoning Commission Minutes from September 9, 2025 30. Approve Annual Amendments to the City Hunting Map 31. Adopt Resolution 2025-075 approving Conditional Use Permits for a drive-through restaurant and joint access and a variance allowing a drive-through lane between a principal structure and a street for property located at 7609 Excelsior Road 32. Adopt Resolution 2025-076 approving an Interim Use Permit (IUP) amendment to allow a one-year extension of an IUP allowing temporary approval of lumber yard use with multiple accessory structures without a principal structure 33. Adopt Resolution 2025-073 approving the preliminary and final plat of Bitterroot Second Addition 9/16/2025 City Council Meeting Minutes Page 4 34. Adopt Resolution 2025-074 approving a conditional use permit to allow for a parking lot expansion for property located at 6284 Fairview Road 35. Approve the Issuance of a Medical Cannabis Combination Registration to Leafline Labs, LLC., dba Rise Baxter MOTION by Council Member Lyscio, seconded by Council Member Sundberg to approve the consent agenda as amended. Motion carried unanimously. PULLED AGENDA ITEMS OTHER BUSINESS 36. 2026 Preliminary Property Tax Levy and Budget Discussion Adopt Resolution 2025-078 Setting the Preliminary 2026 Property Tax Levy Adopt Resolution 2025-079 Approving the Preliminary 2026 Governmental Funds Budget Finance Director Vacinek explained the council needs to adopt the preliminary levy by September 30th. MOTION by Council Member Sundberg, seconded by Council Member Lyscio to Adopt Resolution 2025-078 Setting the Preliminary 2026 Property Tax Levy with the preliminary levy increase of 5% over 2025. Motion carried unanimously. MOTION by Council Member Lyscio, seconded by Council Member Sundberg to Adopt Resolution 2025-079 Approving the Preliminary 2026 Governmental Funds Budget. Motion carried unanimously. 37. Set Public Hearing Date for Hwy 371/210 Baxter Intersection Improvement Project (Hwy 371 Overpass) City Administrator Chapulis explained on September 9, 2025 MnDOT submitted a letter to the city seeking municipal consent for the project. The city is required to conduct a public hearing within 60 days of receipt of the letter. The Forestview Middle school cafetorium has been tentatively reserved for the public hearing as a larger audience is anticipated. The council consensus was to hold the public hearing on November 3, 2025 at 6:00 p.m. MOTION by Council Member Sundberg, seconded by Council Member Lyscio to schedule the public hearing for November 3, 2025. Motion carried unanimously. COUNCIL COMMENTS 38. Connie Lyscio – Encouraged families to support their mental health by enjoying the outdoors. 39. Zach Tabatt – Absent. 40. Patrick Sundberg – No Comment. 9/16/2025 City Council Meeting Minutes Page 5 41. Mark Cross- Asked staff to prepare for a work session on October 7th at 5:30 p.m. to discuss the TH 371 project with business owners and MnDOT. Vice Mayor Cross asked the business community to bring their proposed layout for the project to the meeting. City Administrator Chapulis inquired if October 21st would be an acceptable alternative if MnDOT was unable to participate on October 7th. Vice Mayor Cross explained October 21st would be an acceptable alternative. 42. Darrel Olson – Absent. CITY ADMINISTRATOR'S REPORT No report. CITY ATTORNEY'S REPORT No report. ADJOURN MOTION by Council Member Lyscio, seconded by Council Member Sundberg to adjourn at 7:34 p.m. Motion carried unanimously. Approved by: Respectfully submitted, _____________________________ Darrel Olson Kelly Steele Mayor Assistant City Administrator