City Council Agendas & Packets

APPROVED MINUTES OF THE WORK SESSION CITY OF EAST GRAND FORKS TUESDAY, MARCH 11, 2025 – 5:00 PM CALL TO ORDER: The Work Session of the East Grand Forks City Council for Tuesday, March 11, 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, Donald Casmey, and Karen Peterson. Staff Present: Karla Anderson, Finance Director; 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; Keith Mykleseth, Water and Light General Manager; and Jason Stordahl, Public Works Director. DETERMINATION OF A QUORUM: The Council President Determined a Quorum was present. 1. Presentation from West Central Regional Water District & Request for Letter of Support – Reid Huttunen & Lucas Spaeth Mr. Huttunen introduced Mr. Lucas Spaeth, reminded the Council how information had been brought forward at a previous meeting, and they were looking to see if the City could be a potential supplier to the Water District. Mr. Spaeth introduced himself to the Council, how they were looking at trying to supply water to about 4,000 people within the proposed area, he reviewed how mostly counties form a regional water or wastewater facilities, and it had been about 45 years since the last district had been formed. He said the counties requested this cover more of an area than originally proposed which broadened their scope of work, and it would take many millions of dollars for a pipeline to find water sources with bigger water supplies, so they met with East Grand Forks, Grand Forks, Crookston, along with three North Dakota regional water districts. He added there was data available that showed the arsenic levels in the proposed district with some areas as high as 40% in rural well systems. Mr. Spaeth stated the Highway 75 corridor had infrastructure, but it needed to be updated, there was funding available to replace the older infrastructure, and working as a region could help with communities meeting their necessary requirements or help with staffing. He told the Council they had requested bonding dollars from the State for five years, they were listed to receive bonding, but in the previous year a bonding bill was never approved. He added they were requesting about $9.7 million from the State but did not expect to receive it. He said they currently were looking for water supply which was why East Grand Forks had been contacted and a reviewed the process they were going through to try and obtain funding to make sure the project was affordable and feasible. He then asked for questions. Work Session March 11, 2025 Mayor Olstad thanked Mr. Spaeth for attending the meeting and asked what other agreements the City had with other districts in the area, how this could affect them, and how this could affect the City. Mr. Mykleseth said there was an agreement with Marshall and Polk Rural Water so the City did not run out of water during a drought, he has since learned more about the system, and how water could be released from the dam so he did not think it would be an issue. He said the water plant could make three million gallons of water per day, the City used on average of 900,000 up to one million gallons per day, and all of the infrastructure was paid for. He stated they could help neighbors, there would be a connection fee and sell water to them, and help try to keep rates down. Mayor Olstad asked how things were going with other districts based on the area they would cover. Mr. Spaeth said they had sat down with them, they have a gentlemen’s agreement, but were still working through a written agreement. Discussion followed about some of the area was in question, how some might see some of the proposed area as their own territory, and they did not want to have any issues with any of the other water districts. Council President Larson asked about water being potentially being sourced from the City where water would be sent in a pipeline from the water treatment plant. Mr. Spaeth said they had short term and long term planning, short term they were not planning on building a plant, because they were asking the State for funding for a pipeline so there could be raw water sales in the future and it would also be based on the City’s permit with the Department of Natural Resources (DNR). He added how the DNR was worried about aquafers all around the State, any decisions about sources would come from the engineering study for feasibility, and there was potentially a pipeline from North Dakota that would be going to Halstad for a 25,000 head dairy farm. Council President Larson asked how the City’s water rights worked or what the allocation was for being able to take out of the Red Lake River. Mr. Mykleseth told the Council the DNR permit appropriated a certain amount for the City each year, he wasn’t sure what the exact number was, but currently that amount was way more than needed. Council President Larson said in a worst case scenario, he was thinking about an extreme time of drought, and if this project went forward, how would the City protect its water rights for the community. Mr. Mykleseth said he was in contact with a few different groups, the City received its water from the Lower Red Lake, and they could maintain a certain amount from the Lower Red Lake which they were currently studying. He stated this situation was preliminary, they should help the neighbors, and there should be something in the contract to protect the City in times of drought. Council member Casmey said there were problems with the water with iron and manganese, there were many studies that showed how the northern part of the United States and lower Canada was the number one area in the world for multiple sclerosis (MS) and one not quite as popular was Parkinson’s disease. He stated his diagnosis of Parkinson’s came from ingestion of well water containing manganese. He commented how this wasn’t just a supply issue but rather look at the costs for the country which was something else to consider. Mr. Mykleseth said that was a good point to make sure smaller communities had good water and find staff to run the systems, so a regional concept made sense to him. Mr. Spaeth said it had been enlightening to meet so many different groups and they expected a conservative answer when asking for water from different groups which was what they got. There were no further questions. This item will be referred to a future meeting. 2. Northstar Neighbors Community Land Trust Updates – Reid Huttunen Mr. Huttunen told the Council that Mr. Corey Boushee was also present and how there were two parts to this item. He reminded the Council last year around this time they had entered into an agreement with Northstar Neighbors for the purchase of four lots; after signing the agreements they had to write an Page | 2 Work Session March 11, 2025 application for grants to build homes of these lots, and they were successful in getting grant dollars. He stated it was in the same area that Forx Builders had purchased a lot to build a Northland project home on it, the project home was canceled, and Forx Builders asked to return the lot to the City. He explained there were issues for the City to take the lot back, it was asked if Northstar Neighbors would want to purchase the lot, and they agreed to so this would need to be included in the land trust model. He stated they would like to swap it out for lot 4 so they would not be building on it this year and for the $1,000 and have the first right of refusal for that lot if the program is successful with the first four lots. He asked if there were any questions. Mayor Olstad said he was glad they were able to work things out with Forx Builders so they were able to move on. Mr. Huttunen thanked Northstar Neighbors for working that out. There were no further questions on the lots. Mr. Huttunen said the next item was in regard to the sizes of the homes, Northstar Neighbors had put out an RFP, they were able to hire Thomsen Homes to build all four homes, and how the resolution included a minimum size of home and garage. He said the Thomsen Homes were slightly smaller than what was included in the resolution, approximately three-square feet to seven square feet smaller for the home, and the garages would still be a two stall garage but instead of being 575 square feet, it would be either 418 or 480 square feet. He said they were asking for modifications to the size requirements and asked Mr. Boushee if he had anything else to add. Mr. Boushee said they worked through some processes to meet what was in the original agreement, it all came up to costs, and they were trying to maintain affordability. He said they were hoping to have a couple slab on grade homes, but they were too expensive and costs had increased since they had written the grant. He said they were trying to keep these homes affordable; they had a ceiling on the income level for those that could purchase the homes, and it would really narrow who could afford the homes. He added Minnesota Housing required a no-step entry, they were hoping to get a waiver so they were able to have two bi-level homes, but if not, they would have four two story homes. He asked to amend the agreement to have it a two-stall garage which was a minimum of 400 square feet and a minimum home of 1700 square feet. Council member Helms asked if they would be built on site. Mr. Boushee said yes. Council member Helms said the Economic Development Authority thought this was a good plan and was a good way to have these lots developed. He added they would be nice homes that would be affordable so he would like to move forward with the smaller square footage. Council member Pokrzywinski asked how big the homes next door were and if they would be similar in size. Mr. Boushee said he was not sure of the sizes of the current homes, the proposed homes might look a little smaller, but there was also diverse housing in this area with the townhomes along with larger homes in this neighborhood. He stated they wanted to be a good partner and they would do their best to make good decisions. Council member Pokrzywinski said it was just a general question and he was in support of the program. Mayor Olstad thanked them for having this program and asked if there would be additional waivers from the covenants because of the sizes. Mr. Huttunen told the Council there were no recorded covenants for this area, there was a draft that homeowners may have been given, but nothing was recorded at the County. He added Waters Edge First Addition did have covenants recorded and where they took the information to include in last year’s resolution. Council President Larson said this was a reasonable request, it was important to focus on affordability, and getting people in the homes in East Grand Forks. There were no further questions. This item will be referred to a City Council Meeting for action. Page | 3 Work Session March 11, 2025 3. Request to File Plans & Specifications for 2025 City Project No. 3 Lift Station 13 Rehabilitation – Steve Emery Mr. Emery said they were finishing up the plans and specifications, he reviewed the scope of work, and how this would include a small building to house the control panel and additional driveway. He stated that they had met with the homeowner and he seemed excited about the project with the additional driveway. He reviewed the building, how it would be maintenance free, and it could be painted if the house color ever changed. He added the homeowner was happy with the shed that would be built and that it would be a secured building. He stated they would be bringing the plans and specifications to the next meeting and setting the bid date for April 8th at 10am. Mayor Olstad asked about future development on the north side of 23rd and if that should be accounted for with this project. Mr. Emery said the lift station just served the residential development and to serve a larger area would require larger pumps. Mayor Olstad asked if the area north of 23rd was developed, how that would be served. Mr. Emery said it could be served by gravity sewer utilizing the lift station on the north end of 8th Ave NW. Council member Helms asked why they were no complaints regarding the smell compared to the lift station at 8th Ave NW and 12th Street NW. Mr. Emery said there was only a few thousand gallons a day that went through this lift station whereas the other lift station was the main lift station that had a million gallons going through it a day. Council member Pokrzywinski asked why the driveway was not off 23rd. Mr. Emery said there could be an access issue, and no more accesses were allowed off of 23rd. Council Vice-President Riopelle reminded everyone how 23rd would fill up with snow. There were no further questions. This item will be referred to a City Council Meeting for action. 4. Consider Approval of Fare Increase for Fixed Route Bus & Paratransit Services – Nancy Ellis Ms. Ellis said she was requesting approval for the fare increases but Cities Area Transit had already included in the increase in their budget, and now it was more of a formality. She said the increases did not provide much additional revenue but did help reduce costs for service, so this was favorable. She added ridership was increasing, it was still a valuable service, and it had been 12 years since the last increase to fares. She told the Council other areas were considering increases to their fares, the proposed fares were still reasonable, and cheaper than Uber. She added they were looking at more of a door to door service in East Grand Forks with the micro-transit options, how it was a more valuable service instead of a taxi service, and they had not received any negative comments at any of the open houses. Council Vice- President Riopelle said this was basically already done and it did not matter if it was approved or not. Ms. Ellis said they could go back to the master agreement but would also open the City for other things such possible increases for maintenance. She added that in the plans that had already been approved by the Council, fare increases were mentioned as a way to increase revenues, and they might have to look at other funding opportunities to bring costs down. Council member Helms asked if the service would be affected if the government cuts funding. Ms. Ellis said the City’s federal allocation dollars were small, only 75% or less than $200,000 could be used for operations, and a large part of the funding came from the State of Minnesota. She added North Dakota was looking at increasing funding for their urban areas, funding from Minnesota could be impacted due to tariffs, and there was a meeting the following day to review transit budgets for the next few years. She said when they switch to micro-transit there could be an increase of use and they could drop a route which would help reduce costs. Mayor Olstad said the only way Minnesota would find funding would be to raise taxes because they were looking at a $6 billion deficit so there could be issues for the next few years. Page | 4 Work Session March 11, 2025 Ms. Ellis said there was a reserve from car sales which most of it was coming from and she had not been told that the federal government was going to pull any transit funding. She told the Council she would bring forward any changes when she brought forward the operating budget in May or June. This item will be referred to a City Council Meeting for action. 5. Consider MMPA Termination Agreement for Electric Vehicle Charging Station – Reid Huttunen Mr. Huttunen stated in 2021 the Minnesota Municipal Power Agency (MMPA) and the Water and Light Department installed an electric vehicle charging station in the River Cinema parking lot. He explained the charging station is no longer supported by the company that installed it, the program was not used enough to continue it, so they have asked the Water and Light Department to terminate the agreement, and the fee for termination would cover the cost of staff to remove the equipment. He added the type of charging station was a type 2, it would take approximately four to six hours to charge the vehicle, and it was becoming more common for people to have that type of charger installed in their home. Council President Larson asked if there was information on how often the charging station was used. Mr. Mykleseth said it was only used once or twice a month so there was not a large of use, people wanted to use the faster chargers, and there were issues with it if it got too cold. Council President Larson asked if the City had paid anything for this. Mr. Mykleseth said no, the City just allowed the use of the spaces. There were no further questions. This item will be referred to a City Council Meeting for action. 6. Request to Advertise for Mechanic Position – Jason Stordahl Mr. Stordahl stated there were two mechanics at the Public Works shop, one has given notice that he would be done around the end of May, and they would like to try to hire someone that could be mentored by him. He asked if they could start the hiring process. There were no questions. This item will be referred to a City Council Meeting for action. 7. Consider Proposed Increases to 2025 Summer Recreation Fees – Jeremy King Mr. King stated there was an increase included in the 2025 budget for the summer recreation fees, it was reviewed based on costs for utilities, supplies, and staffing. He said the last increase to summer fees was in 2023, a 5% increase was included for 2025 which was rounded to the nearest whole dollar, and requested to have the Council approved the fees as proposed. He added registration for summer programs would be starting on April 24th and there was not going to be an increase to the pool fees. Council member Helms asked how these fees lined up with Grand Forks. Mr. King said it was similar for tennis and playground but was harder to compare baseball and softball because the City had travel teams, some teams did not have travel, and those fees together were similar to Grand Forks. Council President Larson asked if the programs were full or if there were any vacancies in any of the programs. Mr. King said most of the programs were full, tennis had the lowest attendance, but everything else had good attendance. Council member Pokrzywinski said there was an issue about having enough coaches for the number of kids that had signed up for the programs. There were no further questions. This item will be referred to a City Council Meeting for action. Page | 5 Work Session March 11, 2025 8. Request to Start Recreation Facilities Improvement Projects RFQ – Jeremy King Mr. King reminded the Council the City had issued a Request for Qualifications (RFQ) for the recreation facilities improvement project back in 2021, the project was assigned to Construction Engineers who served through the pre-vote phase of the project, and at the time no official contract was signed because the project kept getting pushed back. He stated after the sales tax was approved in November, the contract was reviewed by Kennedy and Graven, who informed the City a new statute was in place as of July 2024, and that statute could not allow original RFQ process to continue. He explained after review of the situation, the best way forward was to start the RFQ process over again so it would put the project behind a couple months, if it was approved at the next meeting, it could be advertised right away, have a deadline of April 9th which would be followed by the now required Request for Proposals (RFP) which would be due on April 21st. He said the interviews for the finalist would be completed on April 25th and award the contract to the construction manager by May 7th. He recommended the Council approve this process to keep the projects moving forward. There were no questions. This item will be referred to a City Council Meeting for action. ADJOURN: A MOTION WAS MADE BY COUNCIL MEMBER HELMS, SECONDED BY COUNCIL MEMBER RIOPELLE, TO ADJOURN THE MARCH 11, 2025 WORK SESSION OF THE EAST GRAND FORKS, MINNESOTA CITY COUNCIL AT 6:07 P.M. Voting Aye: Pokrzywinski, Riopelle, Helms, Casmey, Larson, Peterson, and Schumacher. Voting Nay: None. _______________________________________________ Megan Nelson, City Clerk Page | 6