City Council Agendas & Packets

APPROVED MINUTES OF THE WORK SESSION CITY OF EAST GRAND FORKS TUESDAY, FEBRUARY 25, 2025 – 5:00 PM CALL TO ORDER: The Work Session of the East Grand Forks City Council for Tuesday, February 25, 2025 was called to order by Council President Larson 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 Mark Olstad, Council President Brian Larson, Council Vice-President Tim Riopelle, Council members Tami Schumacher, Ben Pokrzywinski, Dale Helms, and Karen Peterson. Staff Present: Karla Anderson, Finance Director; Jeff Boushee, Fire Chief; Maggie Brockling, Economic Development Director; Nancy Ellis, City Planner; Steve Emery, City Engineer; Ron Galstad, City Attorney; 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. Information on the Capital Improvement Plan Fund – Karla Anderson a. Information will be provided at the work session. Ms. Anderson said there was a request to explain the central equipment fund which was used to purchase equipment. She referenced page 79 from the annual comprehensive finance report that explained the internal service funds were used to account for the financing of goods or services, there were two internal service funds, one was the central equipment fund, and the other a benefit accrual fund which was to cover accumulated sick leave when there was a severance or retirement. She reviewed what she was going to be covering, she started with information from 2020 showing what equipment was purchased and where payments were coming from. She added how most equipment was paid back over a nine-year period and there were times that equipment had been bonded for. She stated the plan was to purchase a payloader in 2025, there were repayments from both the general fund and interfund payments which were stormwater and refuse, she listed what was proposed to be purchased in 2026, and in 2027 the cost for a fire truck had been included which was the reason for the explanation of the fund. She said Chief Boushee was going to be asking about a fire truck that was estimated to cost $750,000 and there was a possible agreement with the townships to help pay and those payments would go back to this fund. Council member Helms asked how payback was determined. Ms. Anderson said 3% was charged in and payments were set in an amortization schedule. She continued with reviewing the capital improvement plan software, she had printed the information from the fund, the fire truck was scheduled to be purchased in 2027, and listed the other items that were scheduled for purchase in the coming years. Council President Larson asked about the $177,670 and if that was included in the Public Works budget to be paid back to Work Session February 25, 2025 the capital fund. Ms. Anderson said that was correct and the City was very lucky to have this fund to finance purchases. Mr. Huttunen clarified the payment obligation was from previous purchases so when the fire engine would be purchased, they would know the cost, and the payments would come back to the equipment fund from the general fund over a nine-year period so they were financing themselves. She added how some payments come from interfunds which were from the stormwater fund or refuse fund. Council President Larson asked if those funds were from the fees on the utility bills. Ms. Anderson said yes. Discussion followed about how there were going to be 21 radios purchased using this fund for the on-call fire personnel, how this discussion was helpful to review because of the next item, and the turf purchase was to add turf to an arena floor, the recreation projects had pushed this purchase back, and they are trying to determine the best arena for the turf. 2. Request to Consider Joint Fire Engine Purchase Proposal – Jeff Boushee Chief Boushee told the Council he had received a proposal from the seven townships that contract for fire services about changing the current ownership structure of the three fire engines. He explained the fire engines were on a 30-year replacement schedule, the engine owned by the townships was scheduled to be replaced in 2030, the city-owned engine was scheduled to be replaced in 2038, and the engine owned by both entities with a 60 city/40 township split was scheduled to be replaced in 2048. He said engine purchased by both entities was the first time that had happened. Council member Pokrzywinski asked where the engines were located. Chief Boushee said they were kept at one of the city fire stations. He said this came up at the annual meeting they have with the townships, the townships would like to purchase all engines this way, and regardless what happens a fire engine was going to be ordered 2027. Council Vice-President Riopelle asked if there were any issues with the engine that would be replaced. Chief Boushee said the city mechanics did a good job with maintenance and there were specific things they looked at when it came to the engines. Council member Pokrzywinski said the City currently owned 53% of the engines but the agreement would have the City owning 60% with this agreement. Chief Boushee told the Council the City owned two of the engines completely for the sharing of ownership with the last purchase and with the proposed agreement it could save the City approximately $110,000. Council member Pokrzywinski asked how maintenance was handled. Chief Boushee said the City covered the first $500 in parts and they split everything else. Council Vice-President Riopelle asked about usage. Chief Boushee said they may be used the trucks in the township about 10% of the time. Council member Helms said this sounded like a win-win deal. Ms. Anderson told the Council the trucks were City assets and insured by the City. Discussion followed about how it would take three years to get a new engine so the order would be placed in 2027 so it would be ready by 2030 and they might get a discount if paying for the truck in full up front. Chief Boushee asked for approval of the proposal and to prepare a memorandum of understanding. Council President Larson asked what townships contracted for services. Chief Boushee said Rhinehart, Bygland, Sullivan, Grand Forks, Keystone, Huntsville, and Nesbit and they covered 188 square miles. This item will be referred to a City Council Meeting for action. 3. Consider Accepting Donation of Batting Cages from Home Run Club – Jeremy King Mr. King informed the Council that Mike Peterson and Deane Stinar were both in attendance from the Home Run Club to help answer any questions. He explained that the Home Run Club was asking to construct new batting cages at Stauss Park that were estimated to cost $60,000 and after they were constructed the old single batting cage would be taken down. He added they would be donating the batting 2|Page Work Session February 25, 2025 cages to the City once construction was completed. Council member Helms thanked the Home Run Club for this project. Council President Larson thanked the Home Run Club for taking care of the youth in the community and for coming forward with this project. This item will be referred to a City Council Meeting for action. 4. Consider Approving VFW Memorial Arena Rentals – Jeremy King Mr. King stated these were the standard rental agreements for the spring ice rentals. He told the Council the Parks Department had received additional requests for ice rental and was requesting to keep the ice until the June hockey camp was completed. He explained keeping the ice would cost approximately $16,000, he already had rentals that could cover half of those costs, there were others asking, and this would also be easier on the equipment to keep the ice instead of shutting down the plant and having to restart for the June camp. Council member Helms asked where they would be doing this. Mr. King said it would only be at the VFW Arena. Council member Pokrzywinski asked about the $8,000 that was already committed. Mr. King said the $16,000 estimated cost was for after the proposed leases were up. Council member Pokrzywinski said there could be savings because they would not be removing the ice and having to restart the system. Mr. King said he was confident they would be able to rent the ice during this additional time. This item will be referred to a City Council Meeting for action. 5. Request to Hire Recreation Coordinator & Advertise for Park & Recreation Specialist – Jeremy King Mr. King told the Council Mr. Wuitschick had been offered the job as Recreation Coordinator contingent upon council approval. He said this would create a vacancy in the Park Specialist position, he listed the duties of the position, and how they could expand with the arena projects that will be happening. He said both positions were included in the budget, he requested to promote Mr. Wuitschick, and start the hiring process for the Parks Specialist position. Council member Helms asked if they had gone through the hiring process twice for the coordinator position. Mr. King said they had, there were nine applicants, and most applicants were in both processes. These items will be referred to a City Council Meeting for action. 6. Request to Purchase 160 Niche Columbarium for Resurrection Cemetery – Jeremy King Mr. King explained $80,000 had been budgeted for a columbarium, the last one had been purchased in 2022, it was close to capacity, and this columbarium would be all companion niches. He said there were 27 single niches available, the companion or double niches were selling at a rate of about four to every single niche that was sold. He told the Council the cost received was $71,906.00, that amount included the foundation needed, and once an order was placed it would take 32 to 34 weeks before it could be delivered so it might not be placed until November or the next spring. He added they would use the remaining funds to complete additional concrete work and landscaping around the new columbarium. Council member Pokrzywinski asked what the costs were. Mr. King stated it ranged from $2,000 to $2,600 for a double niche and did include a plaque. Council member Helms asked if it would be similar to the columbarium that was currently there. Mr. King said the columbarium would be a little wider but very similar in size. Council President Larson asked if they would look the same. Mr. King said they would. 3|Page Work Session February 25, 2025 This item will be referred to a City Council Meeting for action. 7. Consider Proposed Xcel Energy Franchise Fee Renewal – Reid Huttunen Mr. Huttunen told the Council this agreement would expire in November, he had been working with Xcel Energy on this, and they were able to get this into ordinance form which would still need to be reviewed by Xcel Energy. He explained the current rate was 3%, in 2015 it could have been increased to 4%, but no action was taken on that, and there was a recommendation to change from a percentage to a flat fee that would be charged monthly. He stated the fee could not exceed 5%, he had prepared information on possible flat fees that were closer to 4.5% or 5% based on the 2024 usage. He asked for feedback and how there were four classes they would need to set the fees for and additional classes that were not currently used in the City, but would need to be set in case those customers came to the City. He said the fee collected had fluctuated over the years because it was based on a percentage and was paid yearly. He added going forward the City would be receiving payments quarterly and would push for a flat fee close to 5% because the next update would be in 20 years. Council member Pokrzywinski asked where the fees went. Mr. Huttunen said it went to the general fund. Council member Pokrzywinski said he struggled with raising rates on utilities and asked if it could stay as a percentage or if it had to change to a flat fee. Mr. Huttunen said he was told it was a requirement in Minnesota to have a flat fee. Council member Helms asked what the commercial rates would be. Mr. Huttunen said he was not sure how businesses were classified but there were commercial non-demand, commercial demand, and small interruptible with the biggest fee being set at $200. Discussion followed about how that fee could hit businesses hard, how they were currently paying the 3%, and the flat fee could be a savings for some large users. Council member Pokrzywinski asked if the new agreement was not signed, if the current agreement would remain in place. Mr. Huttunen said he would have to review the information to have to see if that was the case. Mayor Olstad reminded everyone this fee was approximately 2% of the tax levy. Mr. Huttunen told the Council at the 4.5% rate they would collect approximately $128,742 and at 5% it would be approximately $143,000. Mayor Olstad reminded everyone that as time goes on the amount would decrease because it would be a flat rate so he would lean toward the 5% flat rate. Mr. Huttunen told the Council the information still needed to be reviewed by Xcel Energy so it would be brought back at a later date. This item that will be brought back to a future meeting. 8. Request for West Central Regional Water District Letter of Support – Reid Huttunen Mr. Huttunen said this was an informational item because Mr. Mykleseth was the best person to answer questions but was not able to be at the meeting. He explained that a water district was looking at covering parts of Polk, Norman, and Clay counties, the group had met with city staff, they were wanting to complete an exploratory study, and the study would review all water sources. He added there was no commitment other than a request for a letter of support, more discussions would be taking place, and he was just providing information. Council Vice-President Riopelle said the preliminary talks were about areas that had a hard time getting water. Council President Larson said he was interested to learn more and didn’t want to cause any issues. This item will be brought back to a future meeting. 4|Page Work Session February 25, 2025 9. Discussion on Potential Leaf Collection – Jason Stordahl Mr. Stordahl stated he had been asked by council members and residents if the City would collect leaves in the fall. He said they could have a fall clean-up or leaf collection but not both, clean-up cost approximately $40,000 per year, it took place over two weeks, and included the hazardous waste drop off. He told the Council if they started with a leaf collection the equipment would cost around $97,000 but there would be a cost savings and allow staff to work on other items. He added they could try to purchase a used piece of equipment, or they would have to wait 12 to 18 months for a new piece of equipment. He said this was brought forward for consideration, the equipment could be paid for from the stormwater fund, and asked how they would like to proceed. Council member Schumacher asked if there would still be a spring clean-up and if the leaves would have to be put on the berm. Mr. Stordahl said yes to both. Council member Pokrzywinski asked what a used unit would cost. Mr. Stordahl said he was not sure because they were not able to find one. Mayor Olstad said he had asked about this, changing to leaf collection would allow staff to take care of other things, and residents should reach out to their council member to let them know what they would prefer. Discussion followed about how they would plan for two passes around the city, but they might need to adapt and the equipment could be paid for with savings. This item will be brought back to a future meeting. 10. Discussion on Green Site Improvements – Jason Stordahl Mr. Stordahl reviewed the issues with the current green site including poor drainage, he said how the City could be charged extra when branches were put in grass bins, and went over the three possible options for improvements to the green site. He recommended option 2, option 3 used less concrete, and if the City took care of the green site they would need to talk to Grand Forks about the rates. He added they needed to talk about all refuse rates because there would be a 4% increase in costs starting in July for services from Countrywide and that item would be brought forward at a future meeting. Council member Pokrzywinski asked about what was going on with the gate. Mr. Stordahl said they would like to get rid of the gate because of all the issues, have it open to everyone, and charge all accounts for the service. He said they were losing money monthly for this service, they would need to charge everyone with a card $4 per month to break even, or charge everyone $2. He added the cameras did work well at the site and they could fine anyone that caused issues. Mayor Olstad said he would pick option 2 if they were going to have a leaf collection in the fall. Council President Larson said option 2 made sense to help address the storm water issue. He also asked if there was a commercial business that could utilize the items from the green site. Mr. Stordahl said that would take staff. Council President Larson said it would be if someone would want to take the items instead. Mr. Stordahl said he would bring forward rates. Council member Helms asked if they would continue to have Countrywide haul the items or if the City could do it themselves. Mr. Stordahl said they could take over that service and there would be a significant savings and would be allowed under the current contract. This item will be brought back to a future meeting. ADJOURN: 5|Page Work Session February 25, 2025 A MOTION WAS MADE BY COUNCIL MEMBER HELMS, SECONDED BY COUNCIL MEMBER POKRZYWINSKI, TO ADJOURN THE FEBRUARY 25, 2025 WORK SESSION OF THE EAST GRAND FORKS, MINNESOTA CITY COUNCIL AT 6:25 P.M. Voting Aye: Peterson, Schumacher, Pokrzywinski, Riopelle, Helms, and Larson. Voting Nay: None. Absent: Casmey _______________________________________________ Megan Nelson, City Clerk 6|Page