City Council Agendas & Packets

AGENDA OF THE WORK SESSION CITY OF EAST GRAND FORKS TUESDAY, JULY 8, 2025 – 5:00 PM CALL TO ORDER: CALL OF ROLL: DETERMINATION OF A QUORUM: 1. Consider Fire Station 2 Garage Renovation – Jeff Boushee 2. Review of Xcel Energy Franchise Fee Renewal – Reid Huttunen ADJOURN: AGENDA OF THE CLOSED MEETING CITY OF EAST GRAND FORKS TUESDAY, JULY 8, 2025 – FOLLOWING THE WORK SESSION CALL TO ORDER: CALL OF ROLL: DETERMINATION OF A QUORUM: 1. The meeting will be closed pursuant to MN Statute 13D.05 Subd. 3(C)(3) to develop or consider offers or counteroffers for the purchase of real or personal property identified as Parcels No. 83.02308.00 and No. 44-2213-00001-000. ADJOURN: Upcoming Meetings Council Meeting – Tuesday, July 15, 2025 – Council Chambers – 5:00 PM Work Session – Tuesday, July 22, 2025 – Training Room – 5:00 PM Council Meeting – Tuesday, August 5, 2025 – Council Chambers – 5:00 PM Work Session – Tuesday, August 12, 2025 – Training Room – 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: 7/3/2025 To: East Grand Forks City Council 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. Cc: File From: Fire Chief Jeff Boushee RE: Fire Station 2 Garage Renovation Background: Fire Station # 2 garage is 25 years old, it has been moved once, roof leaks and is showing a lot of wear and tear. The garage is in need a renovation which includes a new roof, siding, fascia and soffit. We received a proposals from Don’s ABC Seamless for $18,103.00 and from JC Renovations for $11,250.00 Budgetary Impact: This project was planned for in the 2026 Building Maintenance Fund for $10,000.00 Funds are available in the 2025 Building Maintenance Fund to accomplish this renovation this year. Recommendation: Authorize staff to proceed with this project this year (2025) and award JC Renovations the project for $11,250.00 Enclosure: Don’s ABC Seamless Proposal JC Renovations Proposal -1- 2  ASPHALT PROPOSAL DON'S ABC SEAMLESS INC. 1175 62nd Street N Grand Forks, ND 58203 1 -800-301 -7246 or 7O1 -7 46-7246 N D Contractors Fas<:7O1-746-4254 MN Contractors License #37982 Licens€ #0009012 Proposal Submltted To 5r1, l',r, be,4 .9tL*u z Street enr,tr-r- 273 5&*r-. Sf, city, state, zip ELF , /.uo Phone Ihe NO COUPONS OR DISCOUNTS ?73 - zrtc We hereby submlt specillcations and estlmates for: L -/s'zS APPLY TO THESE PRICES 30 year 'l-imberLine Asphalt Shingles I Pric€ includes: Removal of: layer(s) of old shingles lnstallation ol: lce & water barrier to meet code 15 lb fell on balance of roof Drip Edge Soil Stacks Shingles Labor Yenling: 71J qp-1- $ o Ll, a" Box Vents Turbine Vents Ridge Vents I PROPOSAL includes to fumish awial, labor, sales lax, pernib (if necessary) and clean up. Any ufiloresep,n rcpalls nol included. I $ Paym€nt to bs made as lollowsi 1/2 down at start - balance due upon completion. Cred( Card chargos will apply Ac@r lr pay8bio xl due Llu rEc.pr ol bllL lnl6 Bl wiI b6 ci.!.d d err 3@unis 30 dsyt o. ords ar. ,are o' ! 5% p€r l1Mlh e Lnpsd bdre Al a@Jar! ovor 1ls 6!y! lron @mdol or * ro.Lrt h. Authorized Signature ffiN^r '. oi cd..!o4 acr'rrq. Arl molead 15 gra'er6€d ro 6 as sp€ofDd AHdk ro oo @Epter€d r . mtuMlto mantur .(@oing to 3i&rdEd pr&iic.E A., mlr dn e Mr aid anole propo$l wil o€ & €{1E d1a,!6. AI agM.nis mntngal uplo. slnl.! .ccJ.srt!. d d€r.ys @yord @r @nto Omd to Bry lir6, lomado aid oih6r ne.€€sa.y lnsu.!M. Our wo,*6.s ar. tully co!€l6d by Woltman's Comp€nsstbh x..: rr'bp,lodrmy t $n nm r, *, *.-"r* l,n!ai.6 cusioner a966. ro llmiea €b.rn.ily ilc63sary ai job 3to. "..3O * oM€r ha5 len dar3 lo €if€r 6@pr d Bi6.r lhg p6fo33L ACCEPTANCE OF PROPOSAL Signature Dale of Acceptance 3 Signature Reslod< Printing . 06A817 . 7014624724  PROPOSAL DON'SABC SEAMLESS INC. 1175 - 62nd STREET NORTH GRAND FORKS, ND 58203 1-800-301 -7246 OR PHONE: (701) 746-7246 FAX: (701) 746-a254 ND CONTfoCCTORS LICENSE #37982 MN CONTRACIORS UCENSE #OOO9O12 s ft- Car-*a.. 47 crw, ztP L PHONE OATE *REPAIRS IF NEEDED AT EXTRA COST. -/- -1 -?d ItO COUFOiIS OR OIECOrx$S APPLY TO T}ESE PRICES. Removal of existing siding including hauling it away,,andfill cha€es, and dean up. S59o . ctt U,*,4 btdtligl!: ffiion.. This produd has a good R-value and allol,ys the walls to br6ath6. lt is also a i,yind banier to stop air infiltratil;2rcur norne. $ 579. ,r' / /u1'4- gltli[g: We will installABC Seamlass Steel Siding. PVC paint finish which is the thickest and heaviest steel that you will flnd for your home. Many styles 3", 4", 5' and 8" sizas are standard. Extra charges apply for other sizes. We will pmvide all the mounting plates for lights, faucets, etc. Other slyles - 2', 8' & log at extra cost. $ g 3 l-s.t's Trim CoveB: We will wrap all outer window and door frames in steel $ Fopt- SdmlEatcie: The soffit is aluminum and is vented for air flow into the afiic. Dripedge not included. S 2 ?SL .-* /2'frYct;a- /,*.ot 4 I c6' c' GfIlllE: 5" Seamless galvanized st6el gutters & dort nspouts. We use concoaled hangers speced approximalely 18 - 20" apart using scr€ws into the fascia board and leveling to drain into the do$mgpouts. Size of downspouts: 2x3 () or 3x4 ( ) Large designer gutter $ No.<rk_ Standard K-style guttrer ,* 12, o/g-d) PROPOSAL includes to fumish material, labor, salss tax, permlts (if necessary) and cloan up. Ltfetimo non-prorebd warranty (mat rial & l.bor). Warranty is tran3fo]abl6, All of the ABC product uae mantrfucture from a 28 gauge steel, 4 0.17 thick with the exception of our sofrit, '.,r';^h ic .l,,minum. You have your cfioice of 17 colorc in the PVC paint 5 mil or 19 colors in the duck matte PROPOSAL includos to fumilh m.bdal, hbor, sales 6)q pormit8 (lf necessary) and clean up. Lifetime nonaroraGd warranty {mabrial & labor}. Warranty is transfarabb. All of the ABC products we manufacture ftom a 28 gauge stBel, 0.17 thick with the exception of our soffit, which is aluminum. You have your choice cf 17 colors in the PVC paint 5 mil or 19 @lors in the dlck mstte in 2 mil- Late cancollation, late paymer* i default lf Buyer attempts to cancel this Agreement at any tim6 after midnight of the third businBs day after the date oJ the Agreement, as more fully described in the Notice of Riglht to Cancel Form, 6nd Contractor accepls such late canc€llation, then Buyer agrees to pay Contractor a cancellation fee equal to 15% of the Agreement's purchase prics to offs€t Contractors incuned labor, administ-ative and material costs, Buyer agrees to pay a late fee of 1.5% per month on all amounts due and owing from the Buyer to the Contractor accruing fom the date due and running to the date the payment is made. lf Buyer is in defuult of this Agreement Buyer 4rees to pay Cofltractor's attorney GeE equal to 15% of th6 defaulted amounl or as otherwise alloi/ed by applicable law. Buyer also agrees to pay any other costs or expenses of repossession or @lleclion as allo$/€d by applicable. I / We hereby ackno,r/ledg6 r@eipt of a copy of th6 pamphlot, 'Proted Your Family From Led in Your Home', informirB me / us of the pobntial risk of lead hazard exposure fiom renovation activity to be performed in my / our home, at the address wdtten above. I / We r€ceived this pamphlet on the date of this contract, before lhe work b€gan. lf l€ad is iound, prbes are.subiect to change. {$ Paymer{ b be n ade as irloffi: 1/2 down at start of lrork, balance upon completion. CGdlt crd chffgg. wll 6pO& A.rornt b l€)8dr a$ d@ upoo red * ol bfl. hr6l ba d'a$ed ol d dd|ts 30 daF d dder.t a r& oa 1.516 p€r mc$h oh 6s unFld &hncs. Al acaonnb o,sr a5 &yt tDo consh{ln wI a63d h 0€ conrnettc€'lEot st ol €dl€cton E[vl[€3- A] rnaloid ls g-aailH b be ss specitrd. A! lo bo c..rpl*d h a va{all3ll&e Authorizsd Signature nraBer 6(..,drg b sbn&rd pradt€6. All 4redrBlr conlinlart r@r S16, accira& a d&F bqisd ou corld. OdE b o.rry 8le, bn€do dd.ff€r n€taMy iren8ars. &r'mdg3 ale fury 6o'reEd by t&hrbds r.Eru,qE Conp€,lsanal iBr,rame Crlh.lerrrrlr! cofro.at.hctkivnaca!.rrdrobdlc. Doo's ABC Sratld6, htc ha! fifu.r (15] daF b ia'dax t s pmpA od rE*. dryaofiEetr ftr bncqr&lr, trli€loiaiefi, d ary dlor inarh,obtt ilo.. h t\6 o€* s.dr 6lr sqdlqtt b fiEde. 0la Fop€(t *tr tE ilfl daF ftDm rEiriig wifi.n ..nrdidrs to dE ai.€d or ded dle g0po!al" ACCEPTANCE OF PROPOSAL Signature Date of Ac-ceptran ce Signature Reslo.](Pt fi,tg. 01122@3. 7O1.0&-$A 5 JC Renovations East Grand Forks. MN 56721 uS tacobrcaaveau@gmarl.com Estimate EST lt!4ATE 2024 012 East Grand Forks Fire Department DATE 06i03i2025 DATE ACTIVITY DESCRIPTION QTY RATE AMOUNT Siding and shingles This is an estimate to removed and 1 8,500.00 8.500.00 replacement replace the existing siding & Shingles on a 24x24 oul building. The estimate includes the Materials and Labor for this project. Soffit and Fascia This estimate is for removing and 1 2.7 50.00 2.750.00 replacing the existing Sofit, Fascia with Boxed retums. This estimate includes Labor and Materials. TOTAL $11,250.00 Acceqled Date 6 Paicte I ol 1  AGENDA # _2_______ Request for Council Action Date: July 8, 2025 To: East Grand Forks City Council 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. Cc: File From: Reid Huttunen, City Administrator RE: Northern States Power Company “Xcel Energy” Franchise Fee renewal Background: The City’s Gas Franchise Ordinance with Northern States Power Company; D/B/A Xcel Energy is set to be renewed in 2025. City Staff have engaged in communication with representatives from Xcel Energy for an update and renewal of the Ordinance which governs this franchise agreement. Below are a list of items/details important to the renewal of the ordinance. - The current Gras Franchise Ordinance No. 289 3rd Series and No. 290 3rd Series have been in effect since Nov, 2005 and has a term of 20 years. - The current franchise fee is 3% of the company’s gross earnings received by the company for gas distributed/sold within City limits. - The current ordinance allowed for the Franchise Fee to be increased to 4% anytime on or after December 2015, by action of the City Council updating the current ordinance. This action was never taken, and the 3% fee has remained in place over the entire 20-year period of the agreement. - The City and Xcel Energy have reviewed revisions to the Gas Ordinances and are nearly complete with them. - Tentative Timeline for Review, Public Hearing, and Approval of the amended ordinances. o July 23rd - Publication of public hearing in The Exponent o August 5th - Public Hearing at City Council meeting; 1st Reading of Ordinances o August 19th - 2nd Reading of Ordinances o August 20th - publication of approved ordinance in City newspaper "The Exponent" o August 20 to Nov 18 = 90 Day Notice required notice from Xcel Energy to customers. o Effective Date: December 1, 2025 - Franchise Fee Rate Structure: o The State of Minnesota is now asking for gas franchise fees to be set as a Monthly Flat Fee per customer, rather than the currently used % of gross earnings. o Xcel Energy has provided a summary of the customer classifications and approx. number of customers within each class. NOTE: Xcel Energy will not provide specific 7  AGENDA # ________ information to us on the exact number of members and gross revenue for customer classes with less than 15 members. o The attached table shows the current customer groups and 2024 annual revenue at the 3% fee. It also shows projected revenue based on setting a “Monthly Flat Fee” for each customer class, based on a 4.5% gross revenue or 5% gross revenue formula. - The total franchise fee legally cannot exceed 5% of the gross earnings of the gas company. - The approved fee ordinance must be approved/received by Xcel Energy at least 90 days before the anticipated start of the updated fee collection. Recommendation: Seeking discussion and recommendation from City Council on the proposed Gas Franchise Fee Ordinance Public Hearing and 1st Reading at the August 5 City Council meeting Enclosures: Drafted Ordinances with Amendments Proposed Franchise Fee rate structure 8 9 10 11 12 13 14 15  ORDINANCE NO. _______ AN ORDINANCE IMPLEMENTING A GAS SERVICE FRANCHISE FEE ON NORTHERN STATES POWER COMPANY, A MINNESOTA CORPORATION, D/B/A XCEL ENERGY, ITS SUCCESSORS AND ASSIGNS, FOR PROVIDING GAS SERVICE WITHIN THE CITY OF EAST GRAND FORKS, MINNESOTA THE CITY COUNCIL OF THE CITY OF EAST GRAND FORKS DOES ORDAIN: SECTION 1. The City of East Grand Forks Municipal Code is hereby amended to include reference to the following Special Ordinance. Subd. 1. Purpose. The City of East Grand Forks City Council has determined that it is in the best interest of the City to impose a franchise fee on those public utility companies that provide natural gas services within the City of East Grand Forks. (a) Pursuant to City Ordinance ______, a Franchise Agreement between the City of East Grand Forks and Northern States Power Company, a Minnesota corporation, d/b/a Xcel Energy, its successors and assigns, the City has the right to impose a franchise fee on Northern States Power Company, a Minnesota corporation, its successors and assigns, in an amount and fee design as set forth in Section 9 of the Northern States Power Company Franchise and in the fee schedule attached hereto as Schedule A. Subd. 2. Franchise Fee Statement. A franchise fee is hereby imposed on Northern States Power Company, a Minnesota Corporation, its successors and assigns, under its gas franchise in accordance with the schedule attached here to and made a part of this Ordinance, commencing with the NSPM ________ 2025 billing month. This fee is an account-based fee on each premise and not a meter-based fee. In the event that an entity covered by this ordinance has more than one meter at a single premise, but only one account, only one fee shall be assessed to that account. If a premise has two or more meters being billed at different rates, the Company may have an account for each rate classification, which will result in more than one franchise fee assessment for gas service to that premise. If the Company combines the rate classifications into a single account, the franchise fee assessed to the account will be the largest franchise fee applicable to a single rate classification for energy delivered to that premise. In the event any entities covered by this ordinance have more than one premise, each premise (address) shall be subject to the appropriate fee. In the event a question arises as to the proper fee amount for any premise, the Company’s manner of billing for energy used at all similar premises in the city will control. Subd. 3. Payment. The said franchise fee shall be payable to the City in accordance with the terms set forth in Section 9 of the Franchise. Subd. 4. Surcharge. The City recognizes that the Minnesota Public Utilities Commission may allow Company to add a surcharge to customer rates of city residents to reimburse Company for the cost of the fee. Subd. 5. Record Support for Payment. Company shall make each payment due and, if required by the City, shall provide at the time of each payment a statement summarizing how the franchise fee 1 16 payment was determined, including information showing any adjustments to the total surcharge billed in the period for which the payment is being made to account for any uncollectibles, refunds or error corrections. Subd. 6. Enforcement. Any dispute, including enforcement of a default regarding this ordinance will be resolved in accordance with Section 2.5 of the Franchise Agreement. Subd. 7. Effective Date of Franchise Fee. The effective date of this Ordinance shall be after its publication and ninety (90) days after the sending of written notice enclosing a copy of this adopted Ordinance to NSP by certified mail. Collection of the fee shall commence as provided in above. Subd. 8. Amendment Procedure. Subject to Section 9 of the Franchise Agreement, this Ordinance may be amended in accordance with the procedure set forth in Section 11 of the Franchise Agreement. VOTING AYE: VOTING NAY: ABSENT: None. The President declared the Ordinance passed. ATTEST: PASSED and APPROVED: ___________________, 2025. ______________________________ ________________________________ City Administrator City Council President I hereby approve the foregoing Ordinance this ____ day of ________________, 2025. ________________________________ Mayor 2 17  SCHEDULE A Franchise Fee Rates: Gas Utility The franchise fee shall be in an amount determined by applying the following schedule per customer premise/per month based on metered service to retail customers within the City: Class Amount per month Residential $2.75 Commercial Firm Non-Demand $13.00 Commercial Firm Demand $200.00 Small Interruptible $75.00 Franchise fees are submitted to the City on a quarterly basis as follows: January – March collections due by April 30. April – June collections due by July 31. July – September collections due by October 31. October – December collections due by January 31. 3 18  CURRENT 3% of Gross Earnings 12 Months Gas Revenues - 2024 Estimated Annual % Gross Equivalent Class Count Projected Franchise Fee Revenues Monthly Flat Fee Residential 2711 $1,893,849 $56,815 3% $ 1.67 Commercial Firm - Non-Demand 340 $1,055,179 $31,655 3% $ 8.03 Commercial Firm - Demand <15 $0 $0 3% Small Interruptible <15 $0 $0 3% Total Customers 3051 Annual Frachise Revenue $88,471 2024 Total Rev. $ 119,726.07 PROPOSED GAS FEE at Approx. 4.5% of Gross Earning Equivalent 12 Months Gas Estimated Annual % Gross Equivalent PROPOSED Class Count Revenues Franchise Fee Revenues Monthly Flat Fee Flat Fee Residential 2711 $1,800,980 $81,044 4.50% $ 2.50 $ 2.50 Commercial Firm - Non-Demand 340 $1,059,954 $47,698 4.50% $ 12.04 $ 12.50 Commercial Firm - Demand <15 $0 $0 4.50% $ 190.31 $ 175.00 Small Interruptible <15 $0 $0 4.50% $ 66.70 $ 65.00 Annual Frachise Revenue $128,742 4.49% PROPOSED FEE at Approx. 5% of Gross Earnings Equivalent 12 Months Gas Estimated Annual % Gross Equivalent PROPOSED Class Count Revenues Franchise Fee Revenues Monthly Flat Fee Flat Fee Residential 2711 $1,800,980 $90,049 5% $ 2.78 $ 2.75 Commercial Firm - Non-Demand 340 $1,059,954 $52,998 5% $ 13.38 $ 13.00 Commercial Firm - Demand <15 $0 $0 5% $ 211.45 $ 200.00 Small Interruptible <15 $0 $0 5% $ 74.11 $ 75.00 Medium & Large Interruptible 0 Firm Transportation 0 Interruptible Transportation 0 Annual Frachise Revenue $143,047 4.83% 19