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City Council Agendas & Packets

Regular Meeting

East Grand Forks, MN · July 23, 2024

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Minutes

APPROVED MINUTES OF THE WORK SESSION CITY OF EAST GRAND FORKS TUESDAY, JULY 23, 2024 – 5:00 PM CALL TO ORDER: The Work Session of the East Grand Forks City Council for Tuesday, July 23, 2024 was called to order by Council President Olstad at 5:00 P.M. CALL OF ROLL: On a Call of Roll the following members of the East Grand Forks City Council were present: Mayor Steve Gander, Council President Mark Olstad, Council Vice-President Tim Riopelle, Council Members Clarence Vetter, Ben Pokrzywinski, Dale Helms, Brian Larson, and Karen Peterson. Staff Present: Karla Anderson, Finance Director; Nancy Ellis, City Planner; Ron Galstad, City Attorney; Paul Gorte, Economic Development Director; Michael Hedlund, Police Chief, Charlotte Helgeson, Library Director; Reid Huttunen, City Administrator; Jeremy King, Parks and Recreation Superintendent; Megan Nelson, City Clerk; and Jason Stordahl, Public Works Director. DETERMINATION OF A QUORUM: The Council President Determined a Quorum was present. 1. Request to Fill Vacant Position – Jason Stordahl Mr. Stordahl told the Council that Mr. Cletus Landa would be done as of August 30th after almost 40 years of working for the city. He asked to fill the vacancy and start the hiring process. There were no questions. This item will be referred to a City Council Meeting for action. 2. Request Input for Cannabis Ordinance – Reid Huttunen Mr. Huttunen told the Council a work group had been formed to work through the rules and regulations from the State, more information was needed from the State to complete this process, but the City was able to control zoning and where the business types could be located. He explained how the State would be setting the registration fees so the group had spent its time reviewing zoning, buffer zones for areas around schools could be up to 1000 feet, and the buffer zones for day care centers, a residential treatment facility, or an attraction such as a public park or a place used regularly by minors could have a buffer zone up to 500 feet. He stated if they used the largest buffer zones these businesses would be zoned out of the commercial areas, the work group’s suggestion would be to allow the retail business in the commercial areas instead of the industrial areas because the commercial areas were set up for traffic, so the use would be allowed in downtown commercial and highway commercial zones utilizing a 750 foot buffer zone from schools and a 300 foot buffer from a park or child day care center. He added most of the other businesses would be in the industrial park. Work Session July 23, 2024 Council President Olstad asked about the maps that were included in the packet. Mr. Huttunen said the maps showed the buffer zones that were 750 feet from schools and 300 feet from parks or a day care center. Council President Olstad said that buffer would only allow one side of Demers Avenue. Mayor Gander commented how he liked the way this had been laid out and was being done in an orderly way. Mr. Huttunen stated the State would be registering the businesses and there was a requirement for one of these businesses for every 12,500 in population which would be approximately three businesses for Polk County. He added the City could set a minimum or not, or start with one business to understand the market and demand because it would be hard to limit businesses if they started out with no limit. Council member Larson asked to consider starting with two businesses because only having one would be a monopoly. Council member Peterson said she liked the idea of having two businesses because of how they operate. Mayor Gander said he would like to start with one business, see how things go, and roll out a second business in about six months. Discussion followed about having a buffer between the businesses and how they could allow one business in each commercial area. Mr. Galstad stated there were mezzo and micro businesses that did have a retail aspect to them, he submitted questions to the State regarding these businesses, and was still waiting on answers about what limitations or restrictions that could be put on those businesses. Council member Vetter asked if they limit this to one business, how would they decide who got the license. Council member Pokrzywinski asked about the selection process. Mr. Huttunen informed everyone the business would first have to apply with the State, the State would review the application, a retailer would reach out to the City about locating in the city, and the business would not have to have a location picked out. He continued saying the City would have 30 days to review the license, multiple registrations could be received, and there were a few different ways of moving forward such as a lottery system or a first come, first serve system. He added he spoke with someone recently about if the area became oversaturated with these businesses none of them would be profitable. Council member Pokrzywinski said his initial thought was to have two locations but could agree to starting with one and reviewing at 6 months to consider a second location. Council member Vetter asked how they would evaluate things at 6 months. Council member Pokrzywinski said he did not have the answer but made some suggestions on what could be used. Discussion followed about how there were age limits on cannabis purchases, annual compliance checks would be conducted, and driving impaired would be based upon officer observations because there was nothing currently to test the level of concentration. Council member Larson said he was concerned about having only one location, business would eventually slow down, but they have not addressed how to select a business, so it could be challenging, and they should determine what could be reviewed. Mr. Galstad reminded the Council the State licensed the businesses, the City would determine the amount of licenses, and someone applying for a license would have a benefit if they had a criminal record from a marijuana conviction. Council member Larson said it was frustrating there was not more local control. Mr. Galstad stated again he had sent some questions to the State regarding the micro and mezzo businesses, if the retail for those businesses could be restricted and he was still waiting on answers. Council member Vetter said there should be research done on how liquor licenses determined when the number of the licenses were restricted. Council member Peterson commented how the there should not be retail businesses located in the industrial park. Mr. Huttunen said the micro and mezzo businesses would be located in the industrial park, not the retail location for those businesses, and the City was waiting on a response from the State. Council President Olstad said he would prefer having two businesses and it could be revisited later. Council Vice-President Riopelle said the proposed buffers restricted locations to one side of Demers Avenue and it should be allowed on both sides. Mr. Huttunen said it was the same along Highway 220 2|Page Work Session July 23, 2024 and the buffer zone could be changed to allow for both sides. He added that this would just be for the full cannabis stores and the current stores that were selling THC would still be allowed to do so in their current locations. Mr. Galstad reminded the Council the limitations or buffer zones were not required but they were trying to limit this from children but things could be opened up on the corridors. He added that nothing could be located in residential areas. Mayor Gander said many people did not want these businesses in the city and they were trying to do this in an orderly way. Council member Helms said he did not want these businesses, but he would like to see the 750 foot buffer zone. Council member Larson said they could allow the corridors. Discussion followed about how the only way to prohibit an area was by buffer zones so buffer zone would need to be adjusted to allow certain areas and how the operating hours should be set from 10am to 9pm for each day of the week which was allowed by the State. This item will be brought back to a future meeting. 3. Request Direction on Planned Use of General Fund Reserves and 2023 Surplus – Reid Huttunen and Karla Anderson Mr. Huttunen stated the handout was a summary of the building maintenance fund. He explained there was a surplus from 2023, if the 2024 budget was collected and spent as it was budgeted, this would put the fund balance reserve at 55% at the end of 2024. He reminded the Council the 2024 budget included $174,000 being spent from the reserves. He added the State recommendation was to have a reserve of 35% up to 50% of expenditures so the 5% of the 55% would total approximately $675,000. He said staff was working on the proposed 2025 budget which would be brought forward at an August work session and asked if the Council would want to spend, save, or give some direction on how to use some of that funding. He asked for input and if there were questions. Council President Olstad asked if health insurance was determined. Mr. Huttunen said they should have that information in August. Council President Olstad stated he would like to see a 3% tax levy for 2025, reserves at 50%, and asked what had been delayed and how the greensite needed some work. Mayor Gander said if they had a 3% levy increase that could be close to almost no increase to the residents, the City was running lean, the Ad Hoc committee did a good job, and reviewed history of tax levies. Discussion followed about how there was a -1% tax levy in 2012, how $743,000 was being carried over from 2023, and it was unknown where things would end up for 2024. More discussion followed about how the back portion of the greensite needed to be addressed because of how rough the ground was, how concrete could be added, how there are many issues with the gate, and a change could be made to charge everyone for the greensite and not have cards anymore. This will be brought back to a future meeting. ADJOURN: A MOTION WAS MADE BY COUNCIL MEMBER HELMS, SECONDED BY COUNCIL MEMBER LARSON, TO ADJOURN THE JULY 23, 2024 WORK SESSION OF THE EAST GRAND FORKS, MINNESOTA CITY COUNCIL AT 6:09 P.M. Voting Aye: Peterson, Vetter, Pokrzywinski, Riopelle, Helms, Olstad, and Larson. Voting Nay: None. _______________________________________________ Megan Nelson, City Clerk 3|Page

Agenda

AGENDA OF THE WORK SESSION CITY OF EAST GRAND FORKS TUESDAY, JULY 23, 2024 – 5:00 PM CALL TO ORDER: CALL OF ROLL: DETERMINATION OF A QUORUM: 1. Request to Fill Vacant Position – Jason Stordahl 2. Request Input for Cannabis Ordinance – Reid Huttunen 3. Request Direction on Planned Use of General Fund Reserves and 2023 Surplus – Reid Huttunen and Karla Anderson ADJOURN: Upcoming Meetings Council Meeting – Tuesday, August 6, 2024 – Council Chambers – 5:00 PM Work Session – Tuesday, August 13, 2024 – Council Chambers – 5:00 PM The meeting on August 13th will be done by 6:00pm due to the Primary Election. Council Meeting – Tuesday, August 20, 2024 – Council Chambers – 5:00 PM Work Session – Tuesday, August 27, 2024 – Training Chambers – 5:00 PM Individuals with disabilities, language barriers or other needs who plan to attend the meeting and will need special accommodations should contact Nancy Ellis, ADA Coordinator at (218)-773-2208. Please contact us at least 48 hours before the meeting to give our staff adequate time to make arrangements. Also, materials can be provided in alternative formats for people with disabilities or with limited English proficiency (LEP) by contacting the ADA Coordinator (218)-773-2208 five (5) days prior to the meeting. 1 AGENDA ITEM #__1_____ Request for Council Action Date: 7/18/2024 To: East Grand Forks City Council Mayor Steve Gander, Council President Mark Olstad, Council Vice-President Tim Riopelle, Council members Clarence Vetter, Ben Pokrzywinski, Dale Helms, Brian Larson, and Karen Peterson. Cc: File From: Jason Stordahl-Public Works Director RE: Filling Vacant Position Background: After nearly 40 years of service with the City’s Public Works Department Cletus Landa is retiring August 30th, 2024. This will leave a vacancy within our Department which we like to fill as soon as possible. Recommendation: Approve Staff to start the hiring process to fill vacant Truck Driver position. -1- 2 AGENDA ITEM #_2______ Request for Council Action Date: July 23, 2024 To: East Grand Forks City Council Mayor Steve Gander, Council President Mark Olstad, Council Vice-President Tim Riopelle, Council members Clarence Vetter, Ben Pokrzywinski, Dale Helms, Brian Larson, and Karen Peterson. Cc: File From: Reid Huttunen, City Administrator RE: Cannabis Planning: Seeking input for Ordinance writing guidance Background: The States Office of Cannabis Management (OCM) has released a Guide for Local Governments on Adult-Use Cannabis, as well as a Model Ordinance for local governments. That Guide can be found at this link: A Guide for Local Minnesota Governments on Adult-Use Cannabis (mn.gov) It has become more clear what the role of Local Governments is through the Cannabis rule making process. The following are areas that Local Government can set rules for cannabis by ordinance. 1. Ordinances pertaining to: a. Zoning b. Time, Place, Manner of business operations 2. Local Approval review process for MN State Licensing a. Certification of compliance with zoning ordinances b. Retail Business Registration 3. Compliance Checks – age verification and compliance with local ordinances. City Staff have formed a cannabis work group to review the above areas and have reached a point where we would like to check in with the City Council as a whole, to gather feedback on some of the proposed rules we are discussing. Below is a summary of areas that are within local control and questions that we’d like City Council and public input on. ZONING MN State Law for Cannabis does not restrict how a Local Government sets its zoning designations for cannabis businesses, except that the municipality may prohibit the operation of a cannabis business within 1,000 feet of a school, or 500 feet of a day care, residential treatment facility, or an attraction within a public park that is regularly used by minors, including playgrounds and athletic fields. 1. The City is proposing the following Zoning and Land Use regulations for Cannabis Businesses. a. All Business types would be prohibited within all Zoning Districts if they are located: i. within 750 Feet of a School ii. Within 300 feet of a Licensed Childcare Center/Facility, Residential Treatment facility, or public park, playground, or athletic field. 3 AGENDA ITEM #_______ b. Business License Types and proposed Zoning District BUSINESS TYPE ZONING AREA PERMITTED Retail location Downtown Commercial and Highway Commercial Microbusiness Light Industrial and General Industrial Mezzobusiness Light Industrial and General Industrial Cultivator Light Industrial and General Industrial Manufacturer Light Industrial and General Industrial Wholesaler Light Industrial and General Industrial Transporter Light Industrial and General Industrial Testing Facility Light Industrial and General Industrial Delivery Service Highway Commercial, Light Industrial, General Industrial Medical Cannabis Combo Bus. Light Industrial and General Industrial Low Potency Hemp Manufacturer Light Industrial and General Industrial Low Potency Hemp Retailer Downtown Commercial and Highway Commercial ZONING BUFFER MAPS ARE INCLUDED AS AN ATTACHMENT FOR REVIEW ZONING QUESTIONS: 1. Do you support the proposed restriction that no Cannabis business shall be located within 750 of a school? 2. Do you support the proposed restriction that no Cannabis business shall be located within 300 feet of a Licensed Childcare Center/Facility, Residential Treatment facility, or public park, playground, or athletic field. 3. Do you support the idea that retail sale locations for Cannabis be in the Downtown Commercial or Highway Commercial district? 4. Do you support the idea that any cultivation, or manufacturing of cannabis and cannabis products be located within the Light Industrial or General Industrial district? BUSINESS REGISTRATION 1. By Ordinance, the municipality may limit the number of licensed cannabis retailers to no fewer than One (1) per every 12,500 residents. This means the City of East Grand Forks will be required to allow at least one (1) retail business license. It can set limitations to the total number of retail licenses allowed. a. How many retail business locations should the City of East Grand Forks allow?  One  Two  Three to five  More than five 4 AGENDA ITEM #_______ 2. If the Municipality wishes to place a limitation on the number of retailers allowed within the city, The City will need to define the process for how it will select the retail holder, if more than the allowed number of license holders apply. A few options for this process include: a. Use of a Lottery b. A first Come/First Serve model c. A rolling basis d. Others  If the City determines it will limit the number of retail licenses, how should it determine which retailer is selected for a license? 3. The municipality shall require a Cannabis Business Registration, by ordinance. Fees for these registrations are set by State Law as listed below. a. An initial retail registration fee shall not exceed $500 or half the amount of an initial state license fee under Minn. Stat. 342.11, whichever is less b. A renewal retail registration fee shall not exceed $1,000 or half the amount of a renewal state license fee under Minn. Stat. 342.11, whichever is less BUSINESS REGULATIONS/RESTRICTIONS: 4. By State Law, the municipality may adopt an ordinance limiting hours of operation to the hours between 10 a.m. and 9 p.m., seven days a week. State statute prohibits the sale of cannabis between 2 a.m. and 8 a.m., Monday through Saturday, and between 2 a.m. and 10 a.m. on Sundays a. Our Cannabis Work Group is recommending the following business hours:  Monday through Sunday: 10:00 a.m. to 9:00 p.m.  Do you agree with the above proposed cannabis business hours of operation? Recommendation: No recommendations at this time. Seeking City Council and public input on the above-described business parameters and zoning. Enclosures: Cannabis – Proposed Zoning List East Grand Forks Zoning Map Maps showing impact of proposed buffer zones 5 Downtown Highway Light General Business License Type Definition Commercial Commercial Industrial Industrial Retailer Sell Cannabis and hemp prodcuts to customers & patients Yes Yes No No Microbusiness Cultivate & Package for resale. May Operate one retail location No No Yes Yes Mezzobusiness Cultivate & Package for resale. May Operate up to three retail locations No No Yes Yes Cultivate and Package for sale to another retail business. Cultivator *Indoor Cultivation only within City Limits No No Yes Yes Manufacturer manufacture products for sale to another retail business No No Yes Yes Wholesaler Purchase and/or sell immature cannabis products to/from another cannabis license No No Yes Yes Transporter Transport plants/seedlings to licensed business No No Yes Yes Testing Facility obtain and test immature plants/seedlings from licensed cannabis businesses No No Yes Yes Event Organizer Organize a temporary event lasting no more than 4 days Delivery Service purchase from retailers with retail endorsement to deliver to customers No Yes Yes Yes Medical Cannabis Combination Business Cultivate and manufacture medical cannabis. Operate one retail location No No Yes Yes Low Potentcy Hemp Edible Manufacturer Manufacture low potency edibles for consumer sale No No Yes Yes Lower Potency Hemp Edible Retailer sell lower potency edibles to customers Yes Yes No No Yes = Permitted Zone & Land Use *Zoning District buffers for all business types. No = Prohibited Zone & Land Use No closer than 750 Feet from any school No closer than 300 feet from any childcare center/facility, residential treatment facility or public park, playground, or athletic field regularly used by minors. 6 East Grand Forks Zoning Map State Hwy 220 23rd St NW Central Ave 8th Ave NW Riv er Rd NW 5th Ave NE US Hwy 2 DeM 2nd Ave NE ers Ave Bus Hw y2 C-1: Downtown District C-2: Highway Commercial District I-1: Light Industrial District I-2: General Industrial District PUD: Planned Unit Development Rhinehart Dr SE R-1: Single-Family Residential District R-2: Multi-Family Residential District 13th St SE R-3: High Density Residential District Greenway Blvd SE UER: Urban Expansion Reserve District glan City Limits Flood Protection System By d Rd Water - SE 0 0.5 1 Miles Created: October 26, 2021 7 Sherlock Park Sacred Heart School ³ These data are provided on an "AS-IS" Downtown Commercial C-1 with buffers basis, without warranty of any type, expressed or implied, including but not limited to any warranty as to their 8 performance, merchantability, or fitness 7/1/2024 for any particular purpose. Tri-Valley Head Start EGF Civic Center Senior & Itt's WIlliams Park High ³ These data are provided on an "AS-IS" Highway Commercial C-2 with buffers_map2 basis, without warranty of any type, expressed or implied, including but along Hwy 220 not limited to any warranty as to their 9 performance, merchantability, or fitness 7/1/2024 for any particular purpose. Stauss Park Riverside Christian School Sacred Heart School LaFave Park ³ These data are provided on an "AS-IS" Highway Commercial Bus 2 C-2 with buffers basis, without warranty of any type, expressed or implied, including but along Business Hwy 2 10 not limited to any warranty as to their performance, merchantability, or fitness 7/1/2024 for any particular purpose. Douglas Place Residential Treatment Facility ³ These data are provided on an "AS-IS" Industrial Zoning I-1 and I-2 with res facility buffer basis, without warranty of any type, expressed or implied, including but not limited to any warranty as to their 11 performance, merchantability, or fitness 7/1/2024 for any particular purpose. AGENDA ITEM #_3______ Request for Council Action Date: July 23, 2024 To: East Grand Forks City Council Mayor Steve Gander, Council President Mark Olstad, Council Vice-President Tim Riopelle, Council members Clarence Vetter, Ben Pokrzywinski, Dale Helms, Brian Larson, and Karen Peterson. Cc: File From: Reid Huttunen, City Administrator and Karla Anderson, Finance Director RE: Requesting direction on planned use of General Fund reserves and 2023 surplus Background: City staff are preparing our first draft of the 2025 Budget and plan to bring an initial budget proposal to City Council for review in August. As discussed during the 2023 Audit review: - General Fund Balance increased $743,627 as of December 31, 2023. - Total General Fund Balance $7,244,930.00 as of December 31, 2023. City Policy and Office of State Auditor recommendation is the City to maintain an unrestricted fund balance of 35 to 50 percent of fund operating revenues or no less than five months of regular general fund operating expenditures. With the assumption that we will collect and spend as budgeted in 2024, the 2024 General Fund Balance would be at 55% of Revenue and Expenditures. - Projected Total Revenue: $13,327,897 5% of Revenues = $666,394.85 - Projected Total Expenditures: $13,501,961 5% of Expenditures = $675,098.05 City Staff are preparing the 2025 budget and considering potential Capital Improvement projects to include in our budget request. How would City Council like to see us handle our General Fund balance and 2023 surplus? City staff have discussed the below considerations as potential ideas/options: - Apply a portion of the balance toward Capital Improvement projects: o Examples could include: Fire Station 2 renovation, Parks & Recreation Improvement projects, Industrial Park improvements, etc. - Apply a portion of the balance to 2025 Budget - Save a higher than 50% balance in our general fund Recommendation: No recommendation from staff. Seeking input and direction to help City Staff take the next steps in preparing its 2025 budget proposal. Enclosures: 2024 Budget brief updated with December 31, 2023 fund balance 12 2024 The City of East Grand Forks' budget reflects the CITY OF EAST GRAND FORKS goals developed by City Council, and provides a blueprint for City services. The budget not only PROPOSED GENERAL FUND serves as a financial plan, but also as a tool for accountability. BUDGET BRIEF EAST GRAND FORKS VISIONING GOALS Plan for projects within Fund Balance 2024 BUDGET SUMMARY South End Bridge Beginning Fund Balance: $7,244,930 Local Sales Tax for Recreation Facilities Projected Total Revenue: $13,327,897 Restore and Maintain Trust Projected Total Expenditures: $13,501,961 Strengthen City/School Partnership Bond Estimated End of Year Fund Balance: $7,369,901 Upgrade City Facilities & Streets Fund Balance as % of Revenue 55% Fund Balance as % of Expenditures 55% 13 2024 TOTAL REVENUE 0.9% 0.3% REVENUES 2.0% Property Tax Levy $6,930,081 10.9% Property Tax Levy Franchise & Other Taxes $1,567,684 Franchise & Other Taxes Licenses & Permits $116,275 Licenses & Permits Intergovernmental $2,839,577 Charges for Services $1,451,180 Intergovernmental 21.3% Fines & Forfeits $118,000 52.0% Charges for Services Other Revenues $38,500 Fines & Forfeits Other Financing Sources $266,600 Other Revenues 0.9% Other Financing Sources TOTAL REVENUES $13,327,897 11.8% 2024 TOTAL EXPENSES Current Expenditures Capital Outlay & Other Uses 1.2% 3.4% General Government 2.3% Public Safety 11.7% 6.3% 12.2% 22.1% Public Safety Public Works Public Works 17.3% Recreation & Culture Receration & Culture 27.6% 9.0% Other Expenditures Community Debt Service 43.1% 14.2% Development Other Financing Uses Library 23.6% 6.0% Senior Center Current Expenditures Capital Outlay & Other Uses General Government $1,527,950 Public Safety $116,500 Public Safety $5,388,142 Public Works $275,000 Public Works $1,772,297 Recreation & Culture $60,000 Receration & Culture $2,168,822 Other Expenditures $235,000 Community Development $288,963 Debt Service $90,000 Library $785,008 Other Financing Uses $220,794 Senior Center $146,036 Other Expenditures $427,009 TOTAL EXPENSES $13,501,521 14 GENERAL FUND EXPENSES SUMMARY OF CITY SERVICES PUBLIC WORKS CITY ENGINEER Pavement Management & Infrastructure Road & Street Maintenance Planning & Reviewing City Infrastructures Concrete Repair Snow Removal PARKS & RECREATION PUBLIC SAFETY Maintenance of City pool, parks, outdoor rinks Emergency Notifications & Preparedness Maintenance of City arenas Fire Services Police Services Red River State Recreational Area Campground Recreational Activities COMMUNITY DEVELOPMENT Greenway & Trail maintenance Building Permits & Inspections Planning & Zoning Economic Development LEGAL SERVICES Legal Consultation & Advice FINANCE Representation for the City During Litigation Management of City Fees Taxes & Licensing Preparation of Legal Documents Audits & Financial Statements Budgets Preparation of Legal Documents LIBRARY LEADERSHIP & ADMINISTRATION Library Activities Library Collection General Oversight City Council Support Library City Manager's Office Strategic Planning SENIOR CENTER City Clerk Municipal Election Senior Activities COMMUNITY TAX BREAKDOWN PROPERTY TAX FOR EXAMPLE Estimated Market Home Value: $237,500 Property owners residing in the East Grand Forks City limits: Property tax statements consists of taxes collected for Polk County, Total Property Tax: $3,474 City of EGF, ISD 595 Voter Approved, ISD 595, Watershed, Northwest Regional Development Commission (NWRDC), and Ambulance. BREAKDOWN OF 2023 PROPERTY TAX: City of EGF 48.00% NWRDC $4.33 0.12% Polk County 27.61% Ambulance $11.78 0.34% 16.36% Watershed $81.74 2.35% ISD 595 ISD 595 Voter Approved $181.16 5.21% ISD 595 5.21% Voter Approved ISD 595 $568.25 16.36% Watershed 2.35% Polk County $959.05 27.61% 0.34% Ambulance City of EGF $1,667.69 48.00% NWRDC 0.12% $3,474.00 100.00% 15

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