[PAGE 1] The City of Howard Lake strives to build upon its good neighbor traditions – A welcoming community for all, supported by vibrant and engaged businesses and community organizations, involved citizens, and diverse amenities that provide a well-rounded quality of life. TENTATIVE AGENDA December 9, 2024 – 7:00 pm A. CALL TO ORDER B. PLEDGE OF ALLEGIANCE C. APPROVAL OF AGENDA Any additions, deletions, modifications to the agenda will be done at this time. D. COUNCIL MEETING MINUTES a. Consider approving Council Minutes from the November 18, 2024 Meeting. E. CITIZEN INPUT F. COUNCIL/COMMITTEE REPORT G. DEPARTMENT REPORTS H. CONSENT AGENDA a. Consider Approving All Reports and Payment of Claims. b. Consider Approving to Not Waive Our Statutory Tort Limits. c. Consider 2025 City Council and Parks & Planning Meeting Dates. d. Consider Various Personnel Appointments. I. PRESENTATIONS, PUBLIC HEARINGS & RELATED APPROVALS J. NEW BUSINESS a. Consider Various 2025 Levy & General Fund Budget Approvals. ◾ Resolution 24-15 Approving the 2025 General Fund & Debt Service Levies ◾ Consider Adopting 2025 General Fund Budget. b. Consider Resolution 24-16 Increasing the Howard Lake Fireman’s Relief Association Benefit. c. Consider Ordinance 24-01 Adopting Regulations Related to Cannabis Businesses. d. Consider Various Approvals Related to the Sale of Goldendale Apartments. ◾ Resolution 24-17 Authorizing Execution of Assignments. ◾ Assignment and Assumption of Regulatory Agreement. ◾ First Amendment to Regulatory Agreement e. Consider Resolution 24-18 Designating Library at 817 8th Avenue as Polling Location. f. Consider Resolution 24-19 Approving Plans & Specifications and Order Advertisement of Bids K. OLD BUSINESS L. ADMINISTRATOR’S REPORT M. ADJOURN [PAGE 2] NOTE: The City Council will adjourn to a study session immediately following the regular meeting. [PAGE 3] CITY OF HOWARD LAKE Nicholas A. Haggenmiller, City Administrator 625 8TH Avenue - PO Box 736 - Howard Lake, MN 55349 Phone: 320-543-3670 | cityadmin@howard-lake.mn.us | www.howard-lake.mn.us HOWARD LAKE CITY COUNCIL Howard Lake City Hall - November 18, 2024 MEETING MINUTES COUNCIL PRESENT COUNCIL ABSENT Mayor Zimmerman Jason Deiter Allan Munson Gene Gilbert Tom Kutz STAFF PRESENT Nick Haggenmiller, City Administrator Meagan Theisen, Assistant City Administrator ALSO PRESENT CALL TO ORDER Mayor Zimmerman called the meeting to order at 7:00 p.m. PLEDGE OF ALLEGIANCE All present recited the Pledge of Allegiance. APPROVAL OF AGENDA Council Member Kutz moved to approve the Agenda. The motion was seconded by Council Member Gilbert and passed unanimously. APPROVAL OF MINUTES Council Member Dieter moved to approve the Council minutes from the Council Meetings on September 16, 2024, October 21, 2024 and the Special meeting on November 7, 2024. The motion was seconded by Council Member Munson and passed unanimously. PUBLIC HEARING/PRESENTATION None. CITIZEN INPUT None. COUNCIL/COMMITTEE REPORT Mayor Zimmerman and Council Member Dieter shared notes from the most recent Waste Water meeting, including discussion about rates & projected flows to expect in the future with Waverly and Montrose coming online. A quote was approved to line the sewer pipe. The Waste Water Commission is also looking to switch banks. [PAGE 4] DEPARTMENT REPORTS None. CONSENT AGENDA a. Consider Accepting all Reports & Payment of Claims b. Consider Various Personnel Appointments c. Consider Approving Resolution 24-14 Certifying Delinquent Fees and Charges to Property Taxes d. Consider Approving Use of City Property and Providing Police for Turkey Tag Along e. Consider Approving Business Licenses for 2025 Councilmember Gilbert moved to approve the items in the Consent Agenda. The motion was seconded by Councilmember Kutz and passed unanimously. NEW BUSINESS a. Consider Approving Resolution 24-15 Approving Plans and Cost Share Agreement for 2025 MNDOT US12 Project. Haggenmiller presented the staff report. Council reviewed the plans for the new street lights that will be installed during the HWY 12 project in 2025, the project timeline and plans for informational meetings for the public to attend. Council Member Dieter moved to approve Resolution 24-15 Approving the Plans and Cost Share Agreement for 2025 MNDOT US12 Project. The motion was seconded by Council Member Kutz and passed unanimously. OLD BUSINESS None. ADMINISTRATORS REPORT Council set a budget work session for December 2nd at 6 pm. Public Safety is interviewing for the Fire Department on December 3rd at 6 pm ADJOURN Council Member Kutz moved to adjourn the meeting at 7:55 pm. The motion was seconded by Council Member Gilbert and passed unanimously. Attest – City Administrator/Clerk Mayor [PAGE 5] HOWARD LAKE CITY COUNCIL MEETING HOWARD LAKE CITY COUNCIL MEETING December 9, 2024 JANUARY 15, 2019 AGENDA ITEM: Consider Tort Liability Waiver for League of Minnesota Cities Insurance Trust Policy SECTION: Consent FROM: Nick Haggenmiller, City Administrator Meagan Theisen, Assistant City Administrator BACKGROUND: Annually, the council must decide if it wishes to not waive the city’s salutatory tort limits for liability coverages. COMMENTS: By not waiving our statutory tort limits, we are telling LMCIT that any claims where limits of liability apply will be governed by those limits. $500,000 per person | $1.5 Million of liability coverage. FINANCIAL IMPACT: Open LEGAL: This action is recommended by both legal counsel and insurance representation. STAFF RECOMMENDATION: As in previous years, it is recommended that the city continues the practice of NOT waiving our statutory tort limits. Exercise ATTACHMENTS: 1. LMC Form [PAGE 6] CITY OF HOWARD LAKE 625 8TH Avenue - PO Box 736 - Howard Lake, MN 55349 Phone: 320-543-3670 | cityadmin@howard-lake.mn.us | www.howard-lake.mn.us Parks & Planning City Council Commission 2025 Regular Meeting 2025 Regular Meeting Schedule Schedule 3rd Monday of Every Month at 7 pm **Except January, February and December 2nd Wednesday of Month at 6 pm **Meetings are scheduled as needed *January 21, 2025 *February 18, 2025 January 8, 2025 March 18, 2025 February 12, 2025 April 21, 2025 March 12, 2025 May 19, 2025 April 9, 2025 June 16, 2025 May 14, 2025 July 21, 2025 June 11, 2025 August 18, 2025 July 9, 2025 September 15, 2025 August 13, 2025 October 20, 2025 September 10, 2025 November 17, 2025 October 8, 2025 *December 8, 2025 November 12, 2025 [PAGE 7] HOWARD LAKE CITY COUNCIL MEETING HOWARD LAKE CITY COUNCIL MEETING JANUARY 15, 2019 December 9, 2024 AGENDA ITEM: Consider Various Personnel Appointments SECTION: New Business FROM: City Administrator, Nick Haggenmiller BACKGROUND: Through the promotion of Eric Stoll to First Chief following the retirement of Keith Bobrowske, the second chief position was vacated. The position was posted internally and two applications were received. Following the HLFD Bylaws and City’s Personnel Policy, the membership completed peer reviews of the candidates were completed. Following, the Public Safety Committee interviewed the two candidates. There was concurrence between the peer reviews and the public safety committee to bring forward Alex Mages to the position of 2nd Chief. Mages is a 13 year veteran of the HLFD. DECISION MAKING METRICS: LEGAL: The bylaws and the city’s personnel policy were updated in to accommodate a merit-based appointment system for officers of the department. FINANCIAL: These positions are budgeted and anticipated to be filled. COUNCIL ACTION REQUESTED: Confirm the appointment of Mages to 2nd Chief. ATTACHMENTS: N/A [PAGE 8] HOWARD LAKE CITY COUNCIL HOWARD LAKE CITY COUNCIL MEETING WORKSHOP JANUARY 15, 2019 DECEMBER 9, 2024 WORKSHOP ITEM: Discuss 2025 General Fund Budget & Levy FROM: Amanda Watson, Finance Director Consultant Nick Haggenmiller, City Administrator BACKGROUND: Preliminary Levy 19% Increase - Includes step increases for eligible staff. - Assumes 4% COLA for non union and 2.5% increase for union employees, per contract. - Assumes a 20% health insurance premium increase. - Funds a part time janitor position that is currently a hybrid position with the assistant liquor manager. - Reduces accountant position in lieu of the consultant contract, but does include a small allocation for limited third person in admin. - Includes scheduled increases in public safety (police and fire). - Includes new debt service payment for the library. Major Levy Updates Since Preliminary - Final library debt service payment $8,500 less than budgeted. - Final 2025 Health insurance resulted in 8% increase resulting in $36,767 savings. TOTAL REDUCTIONS SINCE PRELIMINARY: $45,079 or 3% | Overall 16% levy increase Proposed Final Budget Summary: - Overall Changes The 2025 tax levy is proposed to increase $239,963 or 16% for 2025. o The 2025 budget includes a COLA to wages of 4% for non-union employees and 2.5% for union workers. o A significant effort has been made to bring the budget in line with actual expenditures. o - General Fund A balanced General Fund budget is presented. o The General Fund Levy increased by $97,547 or 7.34% from the prior year (excluding debt service levy). o The debt levy was budgeted in the general fund in the prior year, this is now removed and will be budgeted o directly to the debt service funds. Moved liquor store manager wages to fully be funded by liquor store fund. o Added contract for Abdo but allocated partially to enterprise funds. o Removed budget for one-time public safety aid of $93,000 that was budgeted in 2024. o Capital Allocation was reduced by $100,000 for a budget of $600,000. o - Debt Service Levy increase for debt service of $142,416. This is due to the addition of a levy for the library project of o $167,000 offset by the removal of the 2018A debt levy. General Fund Revenue Key Changes: - Property Taxes – The general fund tax levy has increased by $97,547 (excluding debt service levy). As explained above the debt levy was budgeted in the general fund in the prior year, this is now removed and will be budgeted directly to the debt service funds. - Licenses and permits – Increase due to a $5,000 increase to building permits and a $1,000 increase to liquor license to align with actual trends. - Intergovernmental - Decrease due to 2024 budget included one-time allocation of public safety aid of $93,000. The remaining difference is an increase in fire contracts. The budget also includes $44,618 one-time small city street aid. [PAGE 9] - Interest Earnings – The budget was increased to represent current market trends. - Miscellaneous – Decrease due to ambulance wages to represent calculated ambulance wages. General Fund Expenditures Key Changes: - Personal: Removal accountant position offset with Abdo consultant contract o Funding new PT janitor position o Provides 4% COLA (non union) and 2.5% COLA (union) o - Expenditures – Public Safety Police: Decrease due to the removal of $95,000 radio/pager budget that was included in the 2024 budget. o Also, there was a decrease to reclass duplicating supplies, computer supplies, and telephone expenditures to Information Technology. - Expenditures – Other General Govt. Buildings: Increase of $1,500 to general supplies, $5,000 increase to utilities, and $5,000 o increase to building repair and maintenance. Professional Services: Increase due to adding Abdo contract. o Planning and Building Inspection: Increase due to inspections expense raised by $30,000 to align with actual o trends. Other Unallocated: Increase due to workers compensation insurance increase to represent actual billed in o 2024 and the budget being transferred from Information Technology for duplicating supplies, computer supplies/technology, and telephone. Information Technology: Decrease due to moving budget for duplicating supplies, computer o supplies/technology, and telephone to other unallocated. - Capital Improvement Plan Decreased annual contribution by $100,000 from $700,000 to $600,000. o - Debt Service Levy increase for debt service of $142,416. This is due to the addition of a levy for the library project of o $167,000 offset by the removal of the 2018A debt levy. [PAGE 10] PRELIMINARY PROPOSED FINAL YEAR TAX CAPACITY LEVY TAX RATE YEAR TAX CAPACITY LEVY TAX RATE 2016 $ 1,076,784 $ 771,511 71.6% 2016 $ 1,076,784 $ 771,511 71.6% 2017 1,256,636 830,000 66.0% 2017 1,256,636 8 30,000 66.0% 2018 1,290,000 884,000 68.5% 2018 1,290,000 8 84,000 68.5% 2019 1,373,846 969,000 70.5% 2019 1,373,846 9 69,000 70.5% 2020 1,505,006 1,065,459 70.8% 2020 1,505,006 1,065,459 70.8% 2021 1,615,335 1,167,257 72.3% 2021 1,615,335 1,167,257 72.3% 2022 1,807,625 1,220,000 67.5% 2022 1,807,625 1,220,000 67.5% 2023 2,496,215 1,547,653 62.0% 2023 2,496,215 1,547,653 62.0% 2024 2,589,496 1,500,000 57.9% 2024 2,589,496 1,500,000 57.9% 2025 $ 2 ,657,924 $ 1,785,042 67.2% 2025 $ 2 ,657,924 $ 1 ,739,963 65.5% PRELIMINARY LEVY SEPTEMBER PROPOSED FINAL LEVY DECEMBER CERTIFIED LEVY CERTIFIED LEVY 2024 GF LEVY $ 1,328,387 2024 GF LEVY $ 1,328,387 2024 DEBT SERVICE LEVY 171,613 2024 DEBT SERVICE LEVY 171,613 2024 TOTAL $ 1,500,000 2024 TOTAL $ 1,500,000 2025 GF LEVY $ 1,462,500 2025 GF LEVY $ 1,425,934 2025 DEBT SERVICE LEVY $ 322,542 2025 DEBT SERVICE LEVY 314,029 2025 TOTAL $ 1,785,042 2025 TOTAL $ 1,739,963 PERENTAGE CHANGE 19.00% PERENTAGE CHANGE 16.00% [PAGE 11] City of Howard Lake Tax Levy 2,000,000 1,800,000 1,600,000 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 - 2020 2021 2022 2023 2024 2025 General Levy Debt City of Howard Lake Tax Rate 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 2020 2021 2022 2023 2024 2025 Increase (Decrease) in 2024 Taxable 2025 Taxable 2024 Taxes 2025 Taxes Property Property Type Market Value Market Value Market Value Payable Payable Taxes Residential $ 100,000 $ 71,800 $ 62,500 $ 416 $ 409 $ (7) Residential 200,000 180,800 171,500.00 1,047 1,123 75 Residential 300,000 289,800 280,500.00 1,679 1,836 158 Residential 400,000 398,800 389,500.00 2,310 2,550 240 Commercial 500,000 500,000 500,000.00 5,358 6,055 697 Note: no change in market value has been assumed For taxes payable in 2025, the maxium exclusion amount was increased to $38,000 for properties valued at $95,000, with no exclusion for properties valued over $517,200. General Fund Revenues and Expenditures Budget: [PAGE 12] Actual Actual YTD Budget Budget Amount Percent 2022 2023 9/30/2024 2024 2025 Change Change Revenues Property taxes $ 1,066,096 $ 1,214,816 $ 801,525 $ 1,500,000 $ 1,425,934 $ (74,066) -5% Other taxes - - - - - - 0% Licenses and permits 95,927 96,020 101,543 89,500 95,500 6,000 7% Intergovernmental 779,906 919,456 492,103 1,034,040 959,329 ( 74,711) -7% Charges for services 207,680 242,653 166,285 285,200 283,000 (2,200) -1% Fines and forfeitures 7,448 100 84 1,350 1,400 50 4% Interest earnings 8,263 (126,043) 88,640 5,000 25,000 20,000 400% Insurance 17,464 3,174 7,540 - - - 0% Special Assessments 4,440 4,735 3,049 2,500 5,000 2,500 100% Miscellaneous 154,979 136,955 42,192 209,500 189,069 ( 20,431) -10% Other financing sources - 7,186 - 30,000 30,000 - 0% Total Revenues $ 2,342,204 $ 2,499,051 $ 1,702,960 $ 3,157,090 $ 3,014,232 $ (142,858) -5% Actual Actual YTD Budget Budget Amount Percent 2022 2023 9/30/2024 2024 2025 Change Change Expenditures Mayor and Council $ 31,991 $ 30,614 $ 26,369 $ 33,795 $ 30,816 $ ( 2,979) -9% Accountant 44,886 79,700 44,076 81,609 49,215 ( 32,394) -40% General Govt. Buildings 82,828 61,670 46,359 59,752 63,658 3,906 7% Assistant City Administrator 104,943 115,294 78,447 109,918 118,136 8,218 7% City Administrator 163,692 177,697 115,499 161,070 174,390 13,320 8% Professional Services 100,286 128,486 86,378 87,000 128,800 41,800 48% Planning and Bldg Inspection 44,214 52,556 48,041 23,650 54,600 30,950 131% Other Unallocated 502,996 280,519 171,242 138,000 204,722 66,722 48% Police 461,519 511,685 372,273 628,875 608,600 ( 20,275) -3% Fire 308,126 277,296 59,399 254,700 286,386 31,686 12% TZD - - - - - - 0% Civil Defense 538 850 1,400 2,750 2,750 - 0% Ambulance 84,376 77,145 28,874 90,000 83,507 (6,493) -7% Other 222 568 - - - - 0% Streets and Highways 367,322 426,144 232,721 240,150 257,447 17,297 7% Sanitation & Waste Removal 173,300 183,251 146,948 167,000 167,000 - 0% Parks 75,910 55,904 33,955 41,550 58,594 17,044 41% Community Center 20,089 17,749 10,270 30,500 30,500 - 0% Summer Recreation 7,375 3,811 3,528 8,000 - (8,000) -100% Skating Rink 544 501 310 - - - 0% Tennis Court - - - - - - 0% SSEC 48,606 57,036 31,933 43,135 47,111 3,976 9% Construction/Develop - 453,690 - - - - 0% Royalty - - - - - - 0% Community Events 6,137 6,020 2,490 8,500 8,500 - 0% Cable 6,857 8,102 6,276 6,200 7,000 800 13% Cemetery 10,000 10,850 10,000 10,000 10,000 - 0% Information Technology 4,460 4,600 4,218 38,500 9,000 ( 29,500) -77% Other Financing Uses - - - 700,000 600,000 (100,000) -14% General Public Works 14,389 - 8,700 13,500 13,500 - 0% Wellness Program - - - - - - 0% Design Program - - - - - - 0% Store Front Grants - - - - - - 0% Total Expenditures $ 2,665,606 $ 3,021,738 $ 1,569,707 $ 2,978,154 $ 3,014,232 $ 36,078 1% Excess Revenues (Expenditures$ (323,402) $ (522,687) $ 133,252 $ 178,936 $ - $ (178,936) [PAGE 13] Expenditures as Percentage of Budget 25.0% 21.9% 19.3% 20.0% 15.0% 10.0% 9.0% 8.4% 9.6% 6.4% 6.0% 5.2% 3.7% 5.0% 2.6% 1.8% 1.7% 1.6% 1.6% 1.3% 0.0% Summary Budgets for All Other Budgeted Funds Actual Actual YTD Budget Budget 2022 2023 9/30/2024 2024 2025 202 - AMBULANCE FUND Revenues $ 193,352 $ 182,891 $ 124,550 $ - $ 165,500 Expenses 150,933 147,912 4 6,497 - 4 8,350 Net Revenue Over (Under) Expenses $ 4 2,418 $ 3 4,979 $ 7 8,053 $ - $ 117,150 602 - WATER ENTERPRISE FUND Revenues $ 1,032,964 $ 895,270 $ 647,673 $ - $ 875,250 Expenses 585,287 507,248 403,081 - 573,304 Net Revenue Over (Under) Expenses $ 447,676 $ 388,022 $ 244,592 $ - $ 301,946 603 - SEWER ENTERPRISE FUND Revenues $ 1,735,068 $ 1,760,333 $ 1,282,696 $ - $ 1,730,000 Expenses 668,205 1,176,723 810,824 - 1,011,099 Net Revenue Over (Under) Expenses $ 1,066,863 $ 583,610 $ 471,872 $ - $ 718,901 610 - MUNICIPAL LIQUOR Revenues $ 1,105,917 $ 1,124,953 $ 955,372 $ - $ 1,269,750 Expenses 1,089,784 1,084,148 869,077 - 1,217,585 Net Revenue Over (Under) Expenses $ 1 6,133 $ 4 0,805 $ 8 6,294 $ - $ 5 2,165 [PAGE 14] DECISION MAKING METRICS: FINANCIAL: LEGAL: The City must adopt a budget and levy and submit to Wright County by 12/31/24. COUNCIL ACTION REQUESTED: Adopt Resolution Approving the 2025 Budget and Levies. ATTACHMENTS: - Revenue Budget Report - Expenditures Budget Report [PAGE 15] City of Howard Lake Resolution No. 2024-15 Resolution approving 2025 proposed general fund budget and final property tax levy. WHEREAS, the City of Howard Lake is required by State law to approve a resolution setting forth an annual tax levy to the Wright County Auditor; and WHEREAS, Minnesota State Statutes require that all local units of government formally adopt a final tax levy for the preceding fiscal year on or before December 27, 2024; WHEREAS, the City of Howard Lake held the Truth in Taxation public hearing on December 9, 2024 at 6:00 P.M.; WHEREAS, the City of Howard Lake will submit the final budget certification to Wright County by December 31, 2024; NOW THEREFORE BE IT RESOLVED by the City Council of the City of Howard Lake, that the Final 2025 General Fund budget shall be as follows: Budget 2025 Revenues Property taxes $ 1,425,934 Licenses and permits 95,500 Intergovernmental 959,329 Charges for services 283,000 Fines and forfeitures 1,400 Interest earnings 25,000 Special Assessments 5,000 Miscellaneous 189,069 Other financing sources 30,000 Total Revenues $ 3,014,232 [PAGE 16] Budget 2025 Expenditures Mayor and Council $ 30,816 Accountant 4 9,215 General Govt. Buildings 6 3,658 Assistant City Administrator 118,136 City Administrator 174,390 Professional Services 128,800 Planning and Bldg Inspection 5 4,600 Other Unallocated 204,722 Police 608,600 Fire 286,386 Civil Defense 2,750 Ambulance 8 3,507 Streets and Highways 257,447 Sanitation & Waste Removal 167,000 Parks 5 8,594 Community Center 3 0,500 SSEC 4 7,111 Community Events 8,500 Cable 7,000 Cemetery 1 0,000 Information Technology 9,000 Other Financing Uses 600,000 General Public Works 1 3,500 Total Expenditures $ 3,014,232 BE IT FURTHER RESOLVED that the City Council of the City of Howard Lake, Wright County, Minnesota, that the following sums of money be levied for collection in 2025 upon the taxable property in said City of Howard Lake for the following purposes: 2025 Levy General Levy $ 1,425,934 2010A BONDS - 2018A BONDS 72,080 2019A VILLAS 22,918 2023A GO Equipment 52,031 Library 167,000 Total $ 1,739,963 [PAGE 17] BE IT FURTHER RESOLVED that the 2010A GO Imp Bonds levy is hereby adjusted from the scheduled amount of $57,035 to $0 as the debt service will be covered by excess cash on hand in the debt fund; BE IT FURTHER RESOLVED that the 2019A GO Tax Increment Bonds are hereby adjusted from the schedule amount of $43,103 to $22,918 as the difference will be covered by TIF revenue and excess cash on hand in the debt fund; BE IT FURTHER RESOLVED that the 2018A GO Tax Abatement Bonds are hereby adjusted from the schedule amount of $32,080 to $72,080 to include the tax abatement portion of the levy; BE IT FURTHER RESOLVED that the City Clerk is hereby authorized and directed to transmit this information to the County Auditor of Wright County, Minnesota and the Minnesota Department of Revenue, if applicable, in the format requested as required by law. Adopted by the Howard Lake City Council on December 9, 2024. Attest: _____________________________ ______________________________________ City Clerk Mayor [PAGE 18] HOWARD LAKE CITY COUNCIL MEETING HOWARD LAKE CITY COUNCIL MEETING DECEMBER 9, 2024 JANUARY 15, 2019 AGENDA ITEM: Consider Resolution 24-17 Approving Increase to the Howard Lake Fire Relief Association SECTION: New Business FROM: Howard Lake Fire Relief Association Keith Bobrowske, Howard Lake Fire Chief BACKGROUND: At the annual Howard Lake Fire Relief Association meeting, the membership reviewed investments, funding ratio and did a general census of similar sized pension funds. Currently, the fund is over 100% funded. The current funding level is $2,400 per year of service payable after personnel is fully vested at 20 years and 50 years of age. The membership voted to increase the amount by $500 per year of service $2,900 per year of service. This increase is consistent with previous years. Currently, Howard Lake is one of the lowest retirement contributions in Wright County. A funding increase of this amount should permit the fund to remain fully funded in excess of 100%. Per city ordinance and state statute, the city council must formally adopt the increase by resolution. If passed, the increase would go into effect on January 1, 2024. DECISION MAKING METRICS: FINANCIAL: The City budgets for relief contribution and has a financial obligation in the event the fund becomes underfunded. This does not appear to be likely. LEGAL: The City must pass the resolution and submit to the state for execution before going into effect. STRATEGIC PLAN: Deliver High Quality, Reliable Infrastructure and Public Services COUNCIL ACTION REQUESTED: Approve Resolution 24-17 Approving Increase to Fire Relief Pension Fund of the Howard Lake Fire Relief Association. ATTACHMENTS: 1. Resolution 24-17 Approving Increase to Howard Lake Fire Relief Association [PAGE 19] CITY OF HOWARD LAKE RESOLUTION 24-17 RESOLUTION INCREASING THE HOWARD LAKE FIREMAN’S RELIEF ASSOCIATION BENEFIT WHEREAS, the Howard Lake Fireman’s Relief Association has requested an increase in benefits of $500 per year effective January 1, 2025. WHEREAS, the city contribution will not exceed budgeted payments in mandatory city contributions. NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Howard Lake, Minnesota approves the following; 1. A revision to the Howard Lake Fireman’s Association by-laws that reads as follows: a) ARTICLE VII section 1: The association shall pay such member the sum of $2,900 for each year served as an active firefighter in the Howard Lake Fire Department. b) ARTICLE VIII section 1: to the estate of such deceased member, the sum of $2,900 for each year that the deceased member served as an active firefighter in the Howard Lake Fire Department. c) ARTICLE VIII section 2: The sum of $2,900 for each year served as an active firefighter in said fire department. PASSED AND ADOPTED this 9th day of December 2024. _______________________ Peter Zimmerman, Mayor ATTEST: _________________________ Nicholas Haggenmiller, City Administrator-Clerk [PAGE 20] HOWARD LAKE CITY COUNCIL MEETING HOWARD LAKE JANUARY 15, 2019 CITY COUNCIL December 9, 2024 AGENDA ITEM: Consider Ordinance 24-01 to Regulate Cannabis Businesses SECTION: New Business FROM: City Administrator BACKGROUND: The State of Minnesota has decriminalized the recreational sale and use of cannabis. The City of Howard Lake enacted a moratorium on sale/use until January 1, 2025. The topic is new, complex and evolving. The State of Minnesota and League of Minnesota Cities have provided general guidance around the topic as it relates to the licensing, manufacturing, sale and use and police enforcement surrounding cannabis. The State of Minnesota licenses all dispensaries. Local autonomy lies in regulating where, when, how production, sales and use occur as well as general enforcement. In short, like most matters, municipal control will regulate zoning matters and general public safety, health and welfare matters. BACKGROUND Authority& Compliance Wright County provides police coverage for most cities in the county except Buffalo, Annandale and Howard Lake who operate their own police departments. Wright County has established an ordinance/JPA for cities to opt into which regulates the matter under the county. Unless otherwise directed, it is assumed Howard Lake, which has its own means of enforcement, will regulate independently of the county. Registration The State of Minnesota LICENSES City will have authority to REGISTER retailers. Local registration is open to entities that have been licensed through the state. The established fee is set at $500 which is consistent with statutory maximums set forth by the state. Doing so will ensure that they meet zoning requirements and other local requirements that may be brought forward in a CUP/IUP. Limiting Registrations It is illegal to completely prohibit establishments. Additionally, state law prohibits having more than one shop per 12,500 people. Retailers that sell only low potency products are exempt from this limitation. The ordinance as drafted deliberately ignores this, however, and permits up to TWO establishments. Ultimately, state statute would apply. However, in discussion with this provision with multiple other communities both under/over 12,500 people, the rationale is to permit more than one in the event that the first retailer is problematic and undesirable. Therefore, encouraging greater competition to apply pressure on the establishment. While ultimately a policy decision left to council, the ordinance presented to the planning commission indicated limiting to ONE rather than two. [PAGE 21] At the November Planning Commission meeting, the PPC held a public hearing on the proposed ordinance and made various recommendations for the ordinance adoption relating to zoning matters. Ultimately, the following summary was unanimously adopted by the PPC. Section 3 Minimum Buffer State Statutes note that jurisdictions may “adopt reasonable restrictions on the time, place, and manner of the operation of a cannabis business.” A jurisdiction considering other siting requirements (such as a buffer between cannabis businesses, or a buffer from churches) should consider whether there is a basis to adopt such restrictions. A jurisdiction can adopt buffer requirements that prohibit the operation of a cannabis business within a certain distance of schools, daycares, residential treatment facilities, or from an attraction within a public park that is regularly used by minors, including a playground or athletic field. Buffer requirements are optional. Cities may adopt setbacks from sensitive locations such as schools, daycares, residential treatment centers, playgrounds and athletic facilities. These setbacks may be as little as NO setback and as much as 500 feet for most except schools which may have up to a 1,000 foot setback. Howard Lake is a small community with somewhat diverse services and establishments. If the most restrictive standards would be applied, cannabis would essentially be prohibited in full – which is considered exclusionary zoning and therefore, illegal. The images below show setbacks from parks (green), childcare centers (blue), schools (yellow), and parks (green). The image on the left includes the ordinance proposed 250’ whereas the image on the right shows 500’. To that end, the ordinance as written establishes a 250’ setback from these institutions and locations. Zoning Districts Cities can limit what zone(s) Cannabis businesses can operate in. As with other uses in a Zoning Ordinance, a jurisdiction can also determine if such use requires a Conditional or Interim Use permit. A jurisdiction cannot outright prohibit a cannabis business. A jurisdiction should amend their Zoning Ordinance and list what zone(s) Cannabis businesses are permitted in, and whether they are permitted, conditional, or interim uses. Cannabis businesses should be zoned under existing zoning ordinances in accordance with the license type or endorsed activities held by the cannabis business. [PAGE 22] Proposed Use By Zoning District ACTIVITY/USE ZONING DISTRICT PROVISIONS Cultivation Urban Reserve (outdoor only) CUP I-2 General Industrial (indoor) CUP Manufacturing/Processing I-1 Warehousing Industrial CUP I-2 General Industrial Hemp Manufacturer I-1 Warehousing Industrial CUP I-2 General Industrial Wholesale I-1 Warehousing Industrial CUP I-2 General Industrial Cannabis Retail B1 General Business IUP/CUP B2 Downtown Business IUP/CUP Cannabis Transportation I-1 Warehousing Industrial CUP I-2 General Industrial Cannabis Delivery I-1 Warehousing Industrial CUP I-2 General Industrial [PAGE 23] Hours of Operation Cities may adopt an ordinance regulating sales for any period between the hours of 8am – 10am and between 9pm-2am, seven days a week. Proposed Hours for the ordinance attempt to match open hours of the municipal liquor store and attempt to align with regular service hours of the Howard Lake Police Department. • Monday-Saturday 8am – 10pm • Sunday 10am – 10pm Section 4 Temporary Cannabis Event Any individual or business seeking to obtain a cannabis event license must provide OCM information about the time, location, layout, number of business participants, and hours of operation. A cannabis event organizer must receive local approval, including obtaining any necessary permits or licenses issued by a local unit of government before holding a cannabis event. A cannabis event organizer license entitles the license holder to organize a temporary cannabis event lasting no more than four days. A jurisdiction should determine what type of approval is consistent with their existing ordinances for events. A jurisdiction may establish standards for Temporary cannabis events which the event organizer must meet, including restricting or prohibiting any on-site consumption. If there are public health, safety, or welfare concerns associated with a proposed cannabis event, a jurisdiction would presumably be authorized to deny approval of that event. The ordinance as written includes the need for temporary events to have approval from the state as well as local registration. Section 5 Additional Provisions Removes the age requirement dictating low potency products can only be sold in establishments that admit persons 21 years of age or older. While seemingly logical, low potency products are already on the shelves of most c-stores. Regulating after-the-fact will be very difficult. HLPD Police Chief has done regular and random checks of stores for compliance and have never identified issues. Municipal Liquor Stores This section previously included language that permits the municipal liquor store to sell low potency edibles and beverages. These products were made legal under the Farm Bill several years ago and have been sold in local retail establishments to date. Doing so permits the municipal liquor store to continue to sell these products. It is our understanding and interpretation that low potency retailers will be required to register with the state and the City consistent with this ordinance, but they do not count against the tally for full dispensaries. Local Government as a Cannabis Retailer The ordinance is silent to municipal liquor store and/or the city seeking approval through the state to sell cannabis. At this time, guidance from the State of Minnesota is not entirely clear if this will ultimately be permissible as the lottery system favors diversity, equity and inclusion quotas. The City’s insurer League of Minnesota Cities Insurance Trust has indicated they will not insure municipal dispensaries. Finally, it is not believed that given existing staff and facilities that the City has desire or capacity to enter this market. Still at this time, this ordinance neither permits nor prohibits the city from doing so. Section 7 Use in Public Places The ordinance as drafted prohibits use of cannabis that produces a vapor, steam, or smoke or otherwise creates a public health or nuisance. Its noted that some ordinances outright prohibit use of cannabis in full. Given the numerous consumption methods, enforcing such a prohibition is believed to be nearly impossible. Instead, we seek to regulate this similar to tobacco/cigarettes. [PAGE 24] DECISION MAKING METRICS: FINANCIAL: The ordinance lists various permit fees and penalty fees. - $500 for initial license fees, $1,000 or half of the state fee for annual renewals - $2,000 for penalties for violation of terms of the ordinance. - The City’s adopted fee schedule will be used for planning and zoning approvals such as CUP, IUP and consultant expenses. It is noted that these will be revisited annually with the City’s fees and charges schedule. Typically, we do not insert specific dollar amounts into ordinances which are more difficult to amend versus the city’s fees and charges schedule. This is a potential consideration of council. However, the state appears to have maximum levels imposed which will override the city’s fees and charges schedule regardless. One exception to this may be related to low potency products that are currently on the shelves of several local retailers. Due to limited time, staff will bring these fees back LEGAL: The City’s current moratorium prohibiting these activities is set to expire on January 1, 2025 prompting the City to establish a local ordinance. That said, at the State level, recent litigation has paused the lottery program that was being used to identify state license holders. It is unclear how/when this will resolve. Local approvals will not be permitted until the state officially issues licenses. COUNCIL ACTION REQUESTED: Approve personnel policy modifications as presented. ATTACHMENTS: 1. Ordinance 24-01 [PAGE 25] CITY OF HOWARD LAKE COUNTY OF WRIGHT STATE OF MINNESOTA ORDINANCE NO. 24-01 ADOPTING REGULATIONS RELATED TO CANNABIS BUSINESSES THE CITY COUNCIL OF HOWARD LAKE ORDAINS: Section 1. Code Added. Chapter 8.13 is hereby added to the City Code to read as follows: CHAPTER 8.13. – CANNABIS BUSINESSES Section 1. Administration (1) Findings and Purpose. City of Howard Lake makes the following legislative findings: The purpose of this ordinance is to implement the provisions of Minnesota Statutes, chapter 342, which authorizes City of Howard Lake to protect the public health, safety, welfare of Howard Lake residents by regulating cannabis businesses within the legal boundaries of Howard Lake. The City of Howard Lake concludes that the proposed provisions are appropriate and lawful land use regulations for Howard Lake, that the proposed amendments will promote the community's interest in reasonable stability in zoning for now and in the future, and that the proposed provisions are in the public interest and for the public good. (2) Authority & Jurisdiction. The City of Howard Lake has the authority to adopt this ordinance pursuant to: (a) Minn. Stat. 342.13(c), regarding the authority of a local unit of government to adopt reasonable restrictions of the time, place, and manner of the operation of a cannabis business provided that such restrictions do not prohibit the establishment or operation of cannabis businesses. (b) Minn. Stat. 342.22, regarding the local registration and enforcement requirements of state- licensed cannabis retail businesses and lower-potency hemp edible retail businesses. (c) Minn. Stat. 152.0263, Subd. 5, regarding the use of cannabis in public places. (d) Minn. Stat. 462.357, regarding the authority of a local authority to adopt zoning ordinances. Ordinance shall be applicable to the legal boundaries of the city. (3) Severability. If any section, clause, provision, or portion of this ordinance is adjudged unconstitutional or invalid by a court of competent jurisdiction, the remainder of this ordinance shall not be affected thereby. (4) Enforcement. The City of Howard Lake is responsible for the administration and enforcement of this ordinance. Any violation of the provisions of this ordinance or failure to comply with any of its requirements constitutes a misdemeanor and is punishable as defined by law. Violations of this ordinance can occur regardless of whether or not a permit is required for a regulated activity listed in this ordinance. (5) Definitions (a) Unless otherwise noted in this section, words and phrases contained in Minn. Stat. 342.01 and the rules promulgated pursuant to any of these acts, shall have the same meanings in this ordinance. (b) Cannabis Cultivation: A cannabis business licensed to grow cannabis plants [PAGE 26] within the approved amount of space from seed or immature plant to mature plant, harvest cannabis flower from mature plant, package and label immature plants and seedlings and cannabis flower for sale to other cannabis businesses, transport cannabis flower to a cannabis manufacturer located on the same premises, and perform other actions approved by the office. (c) Cannabis Retail Businesses: A retail location and the retail location(s) of mezzobusinesses with a retail operations endorsement, microbusinesses with a retail operations endorsement, medical combination businesses operating a retail location, excluding lower-potency hemp edible retailers. (d) Cannabis Retailer: Any person, partnership, firm, corporation, or association, foreign or domestic, selling cannabis product to a consumer and not for the purpose of resale in any form. (e) Daycare: A location licensed with the Minnesota Department of Human Services to provide the care of a child in a residence outside the child's own home for gain or otherwise, on a regular basis, for any part of a 24-hour day. (f) Lower-potency Hemp Edible: As defined under Minn. Stat. 342.01 subd. 50. Office of Cannabis Management: Minnesota Office of Cannabis Management, referred to as "OCM" in this ordinance. (g) Place of Public Accommodation: A business, accommodation, refreshment, entertainment, recreation, or transportation facility of any kind, whether licensed or not, whose goods, services, facilities, privileges, advantages or accommodations are extended, offered, sold, or otherwise made available to the public. (h) Preliminary License Approval: OCM pre-approval for a cannabis business license for applicants who qualify under Minn. Stat. 342.17. (i) Public Place: A public park or trail, public street or sidewalk; any enclosed, indoor area used by the general public, including, but not limited to, restaurants; bars; any other food or liquor establishment; hospitals; nursing homes; auditoriums; arenas; gyms; meeting rooms; common areas of rental apartment buildings, and other places of public accommodation. (j) Residential Treatment Facility: As defined under Minn. Stat. 245.462 subd. 23. (k) Retail Registration: An approved registration issued by the city to a state- licensed cannabis retail business. (l) School: A public school as defined under Minn. Stat. 120A.05 or a nonpublic school that must meet the reporting requirements under Minn. Stat. 120A.24. (m) State License: An approved license issued by the State of Minnesota's Office of Cannabis Management to a cannabis retail business. Section 2. Registration of Cannabis Businesses (1) Consent to registering of Cannabis Businesses No individual or entity may operate a state-licensed cannabis retail business within the City of Howard Lake without first registering with the city. Any state-licensed cannabis retail business that sells to a customer or patient without valid retail registration shall incur a civil penalty of $2,000 for each violation. (2) Compliance Checks Prior to Retail Registration Prior to issuance of a cannabis retail business registration, the City of Howard Lake shall conduct a preliminary compliance check to ensure compliance with local ordinances. 2 [PAGE 27] Pursuant to Minn. Stat. 342, within 30 days of receiving a copy of a state license application from OCM, the City of Howard Lake shall certify on a form provided by OCM whether a proposed cannabis retail business complies with local zoning ordinances and, if applicable, whether the proposed business complies with the state fire code and building code. (3) Registration & Application Procedure (a) Fees. A registration fee, as established in the city's fee schedule, shall be charged to applicants depending on the type of retail business license applied for. An initial retail registration fee shall be $500 or half the amount of an initial state license fee under Minn. Stat. 342.11, whichever is less. The initial registration fee shall include the initial retail registration fee and the first annual renewal fee. Any renewal retail registration fee imposed by the city shall be charged at the time of the second renewal and each subsequent renewal thereafter. A renewal retail registration fee shall be $1,000 or half the amount of a renewal state license fee under Minn. Stat. 342.11, whichever is less. A medical combination business operating an adult-use retail location may only be charged a single registration fee, not to exceed the lesser of a single retail registration fee, defined under this section, of the adult-use retail business. (b) Application Submittal. The City of Howard Lake shall issue a retail registration to a state-licensed cannabis retail business that adheres to the requirements of Minn. Stat. 342.22. 1. An applicant for a retail registration shall fill out an application form, as provided by the city clerk. 2. The applicant shall include with the form: a. The fee as required in this Section. b. A copy of a valid state license or written notice of OCM license preapproval; 3. Once an application is considered complete, the City Clerk shall inform the applicant as such, process the application fees, and forward the application to the for approval or denial. 4. The application fee shall be non-refundable once processed. (c) Application Approval. 1. A state-licensed cannabis retail business application shall not be approved if the cannabis retail business would exceed the maximum number of registered cannabis retail businesses permitted under this Section. 2. A state-licensed cannabis retail business application shall not be approved or renewed if the applicant is unable to meet the requirements of this ordinance. 3. A state-licensed cannabis retail business application that meets the requirements of this ordinance shall be approved. (d) Annual Compliance Checks. 3 [PAGE 28] The City shall complete at minimum one compliance check per calendar year of every cannabis business to assess if the business meets age verification requirements, as required under Minn. Stat. 342.22 Subd. 4(b) and Minn. Stat. 342.24 and this Chapter. The City shall conduct at minimum one unannounced age verification compliance check at least once per calendar year. Age verification compliance checks shall involve persons at least 17 years of age but under the age of 21 who, with the prior written consent of a parent or guardian if the person is under the age of 18, attempt to purchase adult-use cannabis flower, adult-use cannabis products, lower-potency hemp edibles, or hemp-derived consumer products under the direct supervision of a law enforcement officer or an employee of the local unit of government. Any failures under this section must be reported to the Office of Cannabis Management. (e) Location Change A state-licensed cannabis retail business shall be required to submit a new application for registration under this Section if it seeks to move to a new location still within the legal boundaries of Howard Lake. Or If a state-licensed cannabis retail business seeks to move to a new location still within the legal boundaries of Howard Lake, it shall notify the City Clerk of the proposed location change and submit necessary information to meet all the criteria in this paragraph. (4) Renewal of Registration The City Clerk shall renew an annual registration of a state-licensed cannabis retail business at the same time OCM renews the cannabis retail business' license. A state-licensed cannabis retail business shall apply to renew registration on a form established by the City of Howard Lake. A cannabis retail registration issued under this ordinance shall not be transferred. (a) Renewal Fees. The City of Howard Lake may charge a renewal fee for the registration starting at the second renewal, as established in the city’s fee schedule. (b) Renewal Application. The application for renewal of a retail registration shall include the items necessary for an initial application. (5) Suspension of Registration 4 [PAGE 29] (a) When Suspension is Warranted. The City of Howard Lake may suspend a cannabis retail business's registration if it violates the ordinance of the City or poses an immediate threat to the health or safety of the public. The City Clerk shall immediately notify the cannabis retail business in writing the grounds for the suspension. (b) Notification to OCM. The City Clerk shall immediately notify the OCM in writing the grounds for the suspension. OCM will provide the City and cannabis business retailer a response to the complaint within seven calendar days and perform any necessary inspections within 30 calendar days. (c) Length of Suspension.The suspension of a cannabis retail business registration may be for up to 30 calendar days, unless OCM suspends the license for a longer period. The business may not make sales to customers if their registration is suspended. The City may reinstate a registration if it determines that the violations have been resolved. The City shall reinstate a registration if OCM determines that the violation(s) have been resolved. (d) Civil Penalties. Subject to Minn. Stat. 342.22, subd. 5(e) the City may impose a civil penalty, as specified in the City's Fee Schedule, for registration violations, not to exceed $2,000. (6) Limiting of Registrations The City will issue no more than two (2) retail registrations at any time to cannabis retailers, cannabis mezzobusinesses with a retail operations endorsement, or cannabis microbusinesses with a retail operations endorsement. There is no limit on the number of retail registrations that may be issued for medical cannabis combination businesses or lower-potency hemp edible retailers. Section 3. Requirements for Cannabis Businesses (1) Hours of Operation Cannabis businesses are limited to retail sale of cannabis, cannabis flower, cannabis products, lower-potency hemp edibles, or hemp-derived consumer products between the hours of 8 a.m. and 10 p.m. on Monday through Saturday and 10 a.m. and 10 p.m. on Sunday. Section 4. Temporary Cannabis Events. License or Permit Required for Temporary Cannabis Events: (1) No Sales of approved products, except for lower-potency hemp edibles are allowed at temporary cannabis events. (2) License Required. A license or permit is required to be issued and approved by Howard Lake prior to holding a Temporary Cannabis Event. 5 [PAGE 30] (3) Registration & Application Procedure. A registration fee, as established in Howard Lake’s fee schedule, shall be charged to applicants for Temporary Cannabis Events. (3) Application Submittal & Review. The City of Howard Lake shall require an application for Temporary Cannabis Events. (a) An applicant for a retail registration shall fill out an application form, as provided by the Howard Lake. Said form shall include, but is not limited to: 1. Full name of the property owner and applicant; 2. Address, email address, and telephone number of the applicant; 3. Site plan indicating serving and recreation areas, bathroom and accommodations. (b) The applicant shall include with the form: 1. the application fee as required in this section. 2. a copy of the OCM cannabis event license application, submitted pursuant to 342.39 subd. 2. 3. All required materials and plans stated by this section. The application shall be submitted to the City of Howard Lake, or other designee for review. If the designee determines that a submitted application is incomplete, they shall return the (c) Once an application is considered complete, the designee shall inform the applicant as such, process the application fees, and forward the application to the City Clerk for approval or denial. (d) The application fee shall be non-refundable once processed. (e) The application for a license for a Temporary Cannabis Event shall meet the following standards: 1. Anticipated number of participants. 2. Hours of service, location, and site plan. 3. Have or provide bathroom facilities. 4. Confirmation of security measures. 5. Lockable containers for cannabis and cash related to the event. (f) A request for a Temporary Cannabis Event that meets the requirements of this Section shall be approved. (g) A request for a Temporary Cannabis Event that does not meet the requirements of this Section shall be denied. The City shall notify the applicant of the standards not met and basis for denial. Section 5. Lower-Potency Hemp Edibles. (1) Sales within Municipal Liquor Stores. The sale of low-potency edibles is permitted in a Municipal Liquor Store. (2) Beverages. The sale of low-potency hemp beverages is permitted in places where alcoholic beverages are permitted to be sold. 6 [PAGE 31] (3) Storage of products. Low-potency edibles shall be sold behind a counter and stored in a locked case. Section 6. Use in Public Places. No person shall use cannabis or other products that produce a vapor, steam, smoke, or otherwise create a public nuisance health issue in city parks or inside publicly owned facilities. Section 2. Code Added. That Chapter 17.01-30 is hereby adopted to read as follows: Chapter 30 – Cannabis Businesses. 01-30-01: Purpose. The purpose of this Chapter is to adopt zoning regulations related to cannabis businesses as defined in Chapter 8.13 of the City Code. 01-30-02: Minimum Buffer Requirements A. The City of Howard Lake shall prohibit the operation of a cannabis business within 250 feet of a school. B. The City of Howard Lake shall prohibit the operation of a cannabis business within 250 feet of a day care. C. The City of Howard Lake shall prohibit the operation of a cannabis business within 250 feet of a residential treatment facility. D. The City of Howard Lake shall prohibit the operation of a cannabis business within 250 feet of an attraction within a public park that is regularly used by minors, including a playground or athletic field. E. Pursuant to Minn. Stat. 462.367 subd. 14, nothing in this section shall prohibit an active cannabis business or a cannabis business seeking registration from continuing operation at the same site if a school/daycare/residential treatment facility/attraction within a public park that is regularly used by minors moves within the minimum buffer zone. 01-30-03: Zoning and Land Use. Cannabis businesses, as defined by Chapter 8.13 of the City Code are permitted in the following zoning districts: ACTIVITY/USE ZONING DISTRICT PROVISIONS Cultivation Urban Reserve (outdoor only) CUP I-2 General Industrial (indoor) CUP Manufacturing/Processing I-1 Warehousing Industrial CUP I-2 General Industrial Hemp Manufacturer I-1 Warehousing Industrial CUP I-2 General Industrial Wholesale I-1 Warehousing Industrial CUP 7 [PAGE 32] I-2 General Industrial Cannabis Retail B1 General Business IUP/CUP B2 Downtown Business IUP/CUP Cannabis Transportation I-1 Warehousing Industrial CUP I-2 General Industrial Cannabis Delivery I-1 Warehousing Industrial CUP I-2 General Industrial 01-30-04: Performance Standards. The following performance standards shall apply to any business permitted above: A. Cannabis cultivator or manufacturing businesses that are located within a building shall provide for odor abatement through mechanical scrubbers or similar means and not allow odor to be detectable from the property line. B. All required security measures for cannabis cultivation or manufacturing businesses shall require screening to all adjacent properties. C. Any interim or conditional use permit sought for a cannabis business shall require a security plan. D. Any cannabis cultivator or manufacturing business shall require the provision of an adequate wastewater management plan. E. The operator of a cannabis cultivation business on property within the Urban Reserve District shall reside on the property. F. Any building used for cannabis cultivation within the Urban Reserve District shall have a minimum 200 foot setback to a property line. Section 3. Code Added. The City of Howard Lake fee schedule is amended to include the following fee: Temporary Cannabis Event $500 Section 4. This ordinance shall be in full force and effect from and after its passage and publication according to law. 8 [PAGE 33] ADOPTED by the City Council of the City of Howard Lake, Minnesota this 9th day of December 2024. _________________________ Pete Zimmerman, Mayor ATTEST: _____________________________ Nicholas Haggenmiller, City Clerk-Administrator 9 [PAGE 34] HOWARD LAKE CITY COUNCIL MEETING HOWARD LAKE CITY COUNCIL MEETING JANUARY 15, 2019 December 9, 2024 AGENDA ITEM: Consider Various Approvals Related to the Sale of Goldendale Apartments. SECTION: New Business FROM: City Administrator BACKGROUND: The City of Howard Lake provided conduit financing to Goldendale Apartments in 2005. Goldendale Apartments (1208 7th Street) are Howard Lake’s only subsidized apartment complex. By serving as conduit financer, the property owner (Commonbond Communities) was able to legally obtain tax exempt bonds. The City has served in this capacity numerous times over the years for various non profits for requests that generally support the community; in this case, low income housing. The City is NOT and never was the owner of this property. Commonbond Communities has notified the City that they are selling the property. The buyer is NorthStar Properties LLC of St. Cloud with a signatory of James Knoblach. The City is familiar with Knoblach as he currently owns the Deer Run Apartments on Shoreline Drive. The City has been told the intention is to maintain the property as-is including rental subsidies rather than convert to market rate. The City is being asked to approve various agreements that will allow the sale to move forward as well as move forward in an expedited manner. To review this request, the City’s bond counsel [Taft Law/Mary Ipple] was engaged to review the request on behalf of the City and draft necessary documents. Ultimately, Taft is recommending the approval of the following: Resolution Authorizing Execution of Assignments. Provides approval and direction to the mayor and city administrator to execute documents. Assignment and Assumption of Regulatory Agreement. Assigns various regulatory requirements associated with the property to the new owner. First Amendment to Regulatory Agreement Assigns associated bonds with the property to the new owner and removes former trustee. It is our understanding that transfer of the property including official closing and transition of management will occur on December 18, 2024. The stated process and agreement waives a 45 day waiting period the City would have right to exercise. Per bond counsel, there is nothing the City may do to officially object nor is there reason to object to this transfer for any legally defensible reason. Therefore, the city is encouraged to execute documents as presented. DECISION MAKING METRICS: FINANCIAL: There is not a material cost to the City for this request. All legal and consultant fees incurred will be paid by the parties involved with the transaction. LEGAL: Taft Law drafted the documents presented. COUNCIL ACTION REQUESTED: The City council is encouraged to approve and therefore direct the Mayor and City Administrator to proceed with closing with the approval of: 1. Authorization Resolution 24-17. 2. Approval of Assignment and Assumption Agreement. 3. Approval of Amendment of Regulatory Agreement ATTACHMENTS: 1. Bond Redemption Notice 2. Resolution 24-17 3. Assignment and Assumption Agreement 4. Amendment of Regulatory Agreement. [PAGE 36] EXTRACT OF MINUTES OF A MEETING CITY COUNCIL CITY OF HOWARD LAKE, MINNESOTA HELD: DECEMBER 9, 2024 Pursuant to due call and notice thereof, a regular or special meeting of the City Council of the City of Howard Lake, Minnesota, was duly held at the City Hall on December 9, 2024, at 7:00 P.M. The following members were present: and the following were absent: Member ________________ introduced the following resolution and moved its adoption: RESOLUTION 24-17 AUTHORIZING THE EXECUTION OF A FIRST AMENDMENT TO REGULATORY AGREEMENT AND THE CONSENT TO THE ASSIGMENT AND ASSUMPTION THEREOF A. WHEREAS, the City of Howard Lake, Minnesota (the "City") previously issued its $1,620,000 Housing Facilities Revenue Bonds (Howard Lake/Goldendale Housing Project) Series 2005A and $140,000 Taxable Housing Facilities Revenue Bonds (Howard Lake/Goldendale Housing Project) Series 2005B (collectively, the “Bonds”), pursuant to a Trust Indenture, dated as of February 1, 2005, by and between Issuer and Wells Fargo Bank, National Association, a national banking association, as the trustee then-in-effect; and B. WHEREAS, in connection with the Bonds, Howard Lake Goldendale Housing of Minnesota, LLC, a Minnesota limited liability company (the “Borrower”), the Issuer, and Wells Fargo Bank, National Association, previously entered into that certain Regulatory Agreement dated as of February 1, 2005, and recorded in the Office of the County Recorder of Write County, Minnesota on March 1, 2005 as document number A948878 (collectively, the “Regulatory Agreement”), with respect to the Facilities (as defined in the Regulatory Agreement); and C. Wells Fargo Bank, National Association, assigned its rights, interests, and obligations as trustee under the Regulatory Agreement and Trust Indenture to Computershare Trust Company, N.A. (the “Trustee”) as its successor-in-interest, and Trustee assumed such rights, interests, and obligations; and D. WHEREAS, the Borrower is causing the Bonds to be repaid in full and the parties desire to amend the Regulatory Agreement to release and discharge the Trustee from further duties and obligations under the terms of Regulatory Agreement through a First Amendment to Regulatory Agreement (the “Amendment”), a copy of which is on file with the City; and E. WHEREAS, the Borrower is selling the Facilities to Northstar Properties of St. Cloud LLC, a Minnesota limited liability company (the “Purchaser”) and pursuant to the sale, the Borrower is assigning and the Purchaser is assuming the Borrower’s rights and interest in to the 170104525v1 [PAGE 37] Regulatory Agreement, as amended, pursuant to an Assignment and Assumption of Regulatory Agreement (the “Assignment”), a copy of which is on file with the City; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Howard Lake, Minnesota, as follows: 1. First Amendment to Regulatory Agreement. The City Council hereby approves the Amendment in substantially the form submitted, and the Mayor and City Administrator are hereby authorized and directed to execute the Amendment on behalf of the City. 2. Assignment and Assumption of Regulatory Agreement. The City Council hereby consents to the Assignment in substantially the form submitted, and the Mayor and City Administrator are hereby authorized and directed to execute the consent to the Assignment on behalf of the City. 3. Additional Details. The approval and consent hereby given to the Amendment and the Assignment includes approval of such additional details therein as may be necessary and appropriate and such modifications thereof, deletions therefrom and additions thereto as may be necessary and appropriate and approved by the City officials authorized by this resolution to execute the Amendment and the consent to the Assignment. The execution of the Amendment and the consent to the Assignment by the appropriate officer or officers of the City shall be conclusive evidence of the approval of the Amendment and the consent to the Assignment in accordance with the terms hereof. The motion for the adoption of the foregoing resolution was duly seconded by member ________________, and upon vote being taken thereon the following voted in favor thereof: and the following voted against the same: whereupon the resolution was declared duly passed and adopted. 2 170104525v1 [PAGE 38] STATE OF MINNESOTA ) COUNTY OF WRIGHT ) SS CITY OF HOWARD LAKE ) I, the undersigned, being the duly qualified and acting City Administrator of the City of Howard Lake, Minnesota, hereby certify that I have carefully compared and attached the foregoing extract of minutes of a meeting of the City Council December 9, 2024, with the original thereof on file and of record in my office and the same is a full, true and complete transcript therefrom insofar as the same relates to the execution and delivery of an First Amendment to Regulatory Agreement and the Consent to the Assignment and Assumption thereof. WITNESS my hand on December 9, 2024. __________________________ City Administrator 3 170104525v1 [PAGE 39] ______________________________________________________________________________ (Space Above Reserved for Recording Information) This instrument was drafted by: Winthrop & Weinstine, P.A. (CMM) 225 South Sixth Street, Suite 3500 Minneapolis, MN 55402 ASSIGNMENT AND ASSUMPTION OF REGULATORY AGREEMENT THIS ASSIGNMENT AND ASSUMPTION OF REGULATORY AGREEMENT (this “Agreement”) is made effective as of ______________, 2024 (“Effective Date”), by and between HOWARD LAKE GOLDENDALE HOUSING OF MINNESOTA, LLC, a Minnesota limited liability company (“Assignor”), and NORTHSTAR PROPERTIES OF ST. CLOUD, LLC, a Minnesota limited liability company (“Assignee”). RECITALS: A. As of the Effective Date, Assignor is transferring to Assignee that certain real property and improvements (“Property”) legally described on the attached Exhibit A, attached hereto and incorporated herein. B. The Property is subject to the terms of that certain Regulatory Agreement by and between Assignor, the City of Howard Lake, and Wells Fargo Bank, National Association, dated February 1, 2005, filed in the Office of the Wright County Recorder on March 1, 2005, as Document No. A948878 (referred to herein as the “Regulatory Agreement”), and the requirements of Sections 142 and 145 of the Internal Revenue Code and applicable regulations. C. Assignor desires to assign and transfer all rights and interest in and to the Regulatory Agreement, and Assignee desires to accept such assignment, and assume the obligations of Assignor under the Regulatory Agreement and the requirements in Sections 142 and 145 of the Internal Revenue Code and applicable regulations, as provided herein. NOW, THEREFORE, in consideration of the mutual promises contained herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows. [PAGE 40] AGREEMENT: 1. Assignment. Assignor hereby assigns all of its right and interest in and to the Regulatory Agreement to Assignee as of the Effective Date. 2. Assumption. Assignee hereby accepts, from and after the Effective Date, the foregoing assignment and hereby agrees to assume the obligations of Assignor accruing on and after the Effective Date under the Regulatory Agreement and the requirements of Sections 142 and 145 of the Internal Revenue Code and applicable regulations. 3. Severability. If any provision of this Amendment shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining portions shall not in any way be affected or impaired. 4. Multiple Counterparts. This Assignment may be executed in multiple counterparts, each of which shall be deemed to be an original and all of which shall constitute one and the same Regulatory Agreement. [SIGNATURE PAGES FOLLOW] [PAGE 41] SIGNATURE PAGE TO ASSIGNMENT AND ASSUMPTION OF REGULATORY AGREEMENT IN WITNESS WHEREOF, the undersigned have caused this Agreement to be executed as of the day and year first above written. ASSIGNOR: HOWARD LAKE GOLDENDALE HOUSING OF MINNESOTA, LLC, a Minnesota limited liability company By: Name: Deidre Schmidt Title: Chief Manager STATE OF MINNESOTA ) ) ss COUNTY OF ________ ) The foregoing instrument was acknowledged before me this ____ day of _______________, 2024, by Deidre Schmidt, the Chief Manager of Howard Lake Goldendale Housing of Minnesota, LLC, a Minnesota limited liability company, on behalf of the company. My Commission Expires: _____________________________ Notary Public _______________________ [PAGE 42] SIGNATURE PAGE TO ASSIGNMENT AND ASSUMPTION OF REGULATORY AGREEMENT IN WITNESS WHEREOF, the undersigned have caused this Agreement to be executed as of the day and year first above written. ASSIGNEE: NORTHSTAR PROPERTIES OF ST. CLOUD, LLC, a Minnesota limited liability company By: Name: James M. Knoblach Title: Chief Manager STATE OF MINNESOTA ) ) ss COUNTY OF ________ ) The foregoing instrument was acknowledged before me this ____ day of _______________, 2024, by James M. Knoblach, the Chief Manager of Northstar Properties of St. Cloud, LLC, a Minnesota limited liability company, on behalf of the company. My Commission Expires: _____________________________ Notary Public _______________________ [PAGE 43] CONSENT OF ISSUER The City of Howard Lake, Minnesota, a Minnesota municipal corporation (“Issuer”) is the Issuer named in the Regulatory Agreement dated February 1, 2005, filed in the Office of the Wright County Recorder on March 1, 2005, as Document No. A948878 (the “Regulatory Agreement”). Issuer hereby consents to the execution, delivery and recording of this Assignment and Assumption of Regulatory Agreement. IN WITNESS WHEREOF, the undersigned has executed and delivered this Consent to as of _____________________, 2024. CITY OF HOWARD LAKE, a Minnesota municipal corporation By: Name: Peter Zimmerman Title: Mayor And By: ___________________ Name: Nick Haggenmiller Title: City Clerk STATE OF MINNESOTA ) ) ss COUNTY OF ________ ) The foregoing instrument was acknowledged before me this ____ day of _______________, 2024, by Peter Zimmerman, the Mayor of the City of Howard Lake, Minnesota, a Minnesota municipal corporation, on behalf of the municipality. My Commission Expires: __________ _____________________________ Notary Public STATE OF MINNESOTA ) ) ss COUNTY OF ________ ) The foregoing instrument was acknowledged before me this ____ day of _______________, 2024, by Nick Haggenmiller, the City Clerk of the City of Howard Lake, Minnesota, a Minnesota municipal corporation, on behalf of the municipality. My Commission Expires: __________ _____________________________ Notary Public [PAGE 44] EXHIBIT A Legal Description Those tracts or parcels situated in the County of Wright, and State of Minnesota, legally described as follows: PARCEL A: That part of the Northwest Quarter of the Northwest Quarter of Section 29, Township 121, Range 27, Wright County, Minnesota described as follows: Beginning at the Northwest corner of said Northwest Quarter of the Northwest Quarter; thence East along the North line thereof a distance of 270.40 feet; thence South parallel with the West line of the said Northwest Quarter of the Northwest Quarter a distance of 742.61 feet to the centerline of Minnesota State Highway No. 24; thence Southwesterly along the said centerline a distance of 329.62 feet to the West line of the said Northwest Quarter of the Northwest Quarter; thence North along the said West line a distance of 931.69 feet to the point of beginning, except the Westerly 30 feet thereof. PARCEL B: That part of the SE 1/4 of the NE 1/4 of Section 4, Township 118, Range 27, Village of Howard Lake, Wright County, Minnesota described as follows: Commencing at a point on the South line of the said SE 1/4 of the NE 1/4 distant 33.0 feet East of the Southwest corner of said SE 1/4 of the NE 1/4; thence East along the said South line a distance of 519.00 feet; thence North parallel with the West line of the said SE 1/4 of the NE 1/4 a distance of 250.00 feet to the actual point of beginning; thence continue North along said parallel line a distance of 341.00 feet; thence West parallel with the South line of the said SE 1/4 of the NE 1/4 a distance of 156.00 feet to a line parallel with and distant 395.70 feet East of the West line of the said SE 1/4 of the NE 1/4 ; thence South along the said parallel line a distance of 135.00 feet; thence West parallel with the South line of the said SE 1/4 of the NE 1/4 a distance of 108.70 feet to a line parallel with and distant 287.00 feet East of the West line of the said SE 1/4 of the NE 1/4; thence South along the said parallel line a distance of 206.00 feet; thence East parallel with the South line of the said SE 1/4 of the NE 1/4 a distance of 265.00 feet to the point of beginning. Abstract Property 30229203v2 [PAGE 45] ______________________________________________________________________________ (Space Above Reserved for Recording Information) This instrument was drafted by: Winthrop & Weinstine, P.A. (CMM) 225 South Sixth Street, Suite 3500 Minneapolis, MN 55402 FIRST AMENDMENT TO REGULATORY AGREEMENT This FIRST AMENDMENT TO REGULATORY AGREEMENT (the “Amendment”) is made effective as of ______________, 2024, by and among HOWARD LAKE GOLDENDALE HOUSING OF MINNESOTA, LLC, a Minnesota limited liability company (“Borrower”), the CITY OF HOWARD LAKE, a municipal corporation and political subdivision organized and existing pursuant to the Constitution and laws of the State of Minnesota (together with its successors and assigns, the “Issuer”), and COMPUTERSHARE TRUST COMPANY, N.A., as trustee (“Trustee”). RECITALS: WHEREAS, the Issuer has previously issued its $1,620,000 Housing Facilities Revenue Bonds (Howard Lake/Goldendale Housing Project) Series 2005A and $140,000 Taxable Housing Facilities Revenue Bonds (Howard Lake/Goldendale Housing Project) Series 2005B (collectively, the “Bonds”), pursuant to a Trust Indenture, dated as of February 1, 2005, by and between Issuer and Wells Fargo Bank, National Association, a national banking association, as the trustee then-in-effect; WHEREAS, in connection with the Bonds, the Borrower, Issuer and Wells Fargo Bank, National Association, previously entered into that certain Regulatory Agreement dated as of February 1, 2005, and recorded in the Office of the County Recorder of Write County, Minnesota on March 1, 2005 as document number A948878 (collectively, the “Regulatory Agreement”), with respect to the Facilities (as defined in the Regulatory Agreement); WHEREAS, Wells Fargo Bank, National Association, assigned its rights, interests, and obligations as trustee under the Regulatory Agreement and Trust Indenture to Trustee as its successor-in-interest, and Trustee assumed such rights, interests, and obligations; [PAGE 46] WHEREAS, contemporaneously with the recording of this Amendment, Borrower is causing the Bonds to be repaid in full; and WHEREAS, the parties hereto desire to amend the Regulatory Agreement to release and discharge the Trustee from further duties and obligations under the terms of Regulatory Agreement. NOW, THEREFORE, in consideration of the foregoing and for other consideration the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows. AGREEMENT: 1. Provisions Relating to Trustee. Trustee, as itself and as successor-in-interest to Wells Fargo Bank, National Association, is hereby released from all duties and obligations under the Regulatory Agreement arising after the payment of the Bonds in full, and all provisions throughout the Regulatory Agreement related to the duties of, or notice to or from, the Trustee. If, under the terms of the Regulatory Agreement, any approval or consent of the “Trustee” is required, such approval or consent shall be obtained from the Issuer (however, multiple notices need not be provided). The rights to indemnification of Trustee, as “Trustee” under the Regulatory Agreement, shall survive such release and discharge. 2 Severability. If any provision of this Amendment shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining portions shall not in any way be affected or impaired. 3. Multiple Counterparts. This Amendment may be simultaneously executed in multiple counterparts, all of which shall constitute one and the same instrument and each of which shall be deemed to be an original. [SIGNATURE PAGES FOLLOW] [PAGE 47] SIGNATURE PAGE TO FIRST AMENDMENT TO REGULATORY AGREEMENT IN WITNESS WHEREOF, the undersigned have caused this Amendment to be executed as of the day and year first above written. BORROWER: HOWARD LAKE GOLDENDALE HOUSING OF MINNESOTA, LLC, a Minnesota limited liability company By: Name: Deidre Schmidt Title: Chief Manager STATE OF MINNESOTA ) ) ss COUNTY OF ________ ) The foregoing instrument was acknowledged before me this ____ day of _______________, 2024, by Deidre Schmidt, the Chief Manager of Howard Lake Goldendale Housing of Minnesota, LLC, a Minnesota limited liability company, on behalf of the company. My Commission Expires: _____________________________ Notary Public _______________________ [PAGE 48] SIGNATURE PAGE TO FIRST AMENDMENT TO REGULATORY AGREEMENT IN WITNESS WHEREOF, the undersigned have caused this Amendment to be executed as of the day and year first above written. ISSUER: CITY OF HOWARD LAKE, a Minnesota municipal corporation By: Name: Peter Zimmerman Title: Mayor And By: ___________________ Name: Nick Haggenmiller Title: City Clerk STATE OF MINNESOTA ) ) ss COUNTY OF ________ ) The foregoing instrument was acknowledged before me this ____ day of _______________, 2024, by Peter Zimmerman, the Mayor of the City of Howard Lake, Minnesota, a Minnesota municipal corporation, on behalf of the municipality. My Commission Expires: __________ _____________________________ Notary Public STATE OF MINNESOTA ) ) ss COUNTY OF ________ ) The foregoing instrument was acknowledged before me this ____ day of _______________, 2024, by Nick Haggenmiller, the City Clerk of the City of Howard Lake, Minnesota, a Minnesota municipal corporation, on behalf of the municipality. My Commission Expires: __________ _____________________________ Notary Public [PAGE 49] SIGNATURE PAGE TO FIRST AMENDMENT TO REGULATORY AGREEMENT IN WITNESS WHEREOF, the undersigned have caused this Amendment to be executed as of the day and year first above written. TRUSTEE: COMPUTERSHARE TRUST COMPANY, N.A., as Trustee By: __________________________ Name: ________________________ Title: ________________________ STATE OF ______________ COUNTY OF _____________ I, the undersigned, a Notary Public in and for the county and State aforesaid, do hereby certify that on this ___________________, 2024 _____________________, the Vice President of Computershare Trust Company, N.A., personally known to me to be the same person whose name is subscribed to the foregoing instrument, appeared before me this day in person and acknowledged that she signed and delivered the said instrument as her free and voluntary act and the free and voluntary act of said agency for the purposes therein set forth. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year first above written. ________________________________________ [seal] Notary Public 30234155v2 [PAGE 50] HOWARD LAKE CITY COUNCIL MEETING HOWARD LAKE CITY COUNCIL MEETING December 9, 2024 JANUARY 15, 2019 AGENDA ITEM: Consider Resolution 24-18 Designating a Polling Place SECTION: Consent FROM: Meagan Theisen, Assistant City Administrator BACKGROUND: In 2017, the State Legislature amended Minnesota Statute § 204B.16 Subd. 1 requiring all municipalities to designate a polling place annually by December 31 of each year. The City has historically held elections in City Hall. The proposed resolution would not change any election operations as it maintains City Hall as the designated polling place. It simply ensures the City remains in compliance with the new requirements in state statute. DECISION MAKING METRICS: FINANCIAL: N/A LEGAL: This action follows state statute concerning polling places. STRATEGIC PLAN: Deliver High Quality, Reliable Infrastructure and Public Services COUNCIL ACTION REQUESTED: Adopt Resolution 24-18 Designating a Polling Place. ATTACHMENTS: 1. Resolution 24-18 Designating Polling Place [PAGE 51] CITY OF HOWARD LAKE RESOLUTION 24-15 RESOLUTION DESIGNATING AN ABSENTEE VOTING LOCATION WHEREAS, Minnesota Statute § 204B.16 Subd. 1 was amended by the Minnesota State Legislature during it 2017 regular session to require all municipalities to annually designate a polling place by December 31 of each year for the following calendar year; WHEREAS, the City of Howard Lake designates City Hall at 625 8th Avenue, Howard Lake as the polling place and absentee voting location for Precinct 1; THEREFORE BE IT RESOLVED, that the City of Howard Lake designates Howard Lake Library at 817 8th Avenue, Howard Lake as the polling place for Precinct 1 for the 2025 calendar year. PASSED AND ADOPTED this 9th day of December 2024. Peter Zimmerman, Mayor ATTEST: Nicholas Haggenmiller, City Administrator-Clerk [PAGE 52] HOWARD LAKE CITY COUNCIL MEETING HOWARD LAKE CITY COUNCIL MEETING JANUARY 15, 2019 December 9, 2024 AGENDA ITEM: Consider Resolution Approving Plans & Specifications and Order Advertisement of Bids SECTION: New Business FROM: City Administrator BACKGROUND: Necessary design and engineering has been underway for over a year related to a comprehensive set of street reconstruction and utility replacement projects. The first phase is completing a significant street reconstruction project, targeted at the north west quarter of the City that has not been reconstructed for 40+ years. The City is seeking financing through USDA and the PFA and anticipates final clearances to be received by year end. This is optimal bid let season; despite not having the final approval staff is requesting that the plans and specifications be approved and thereby order the advertisement of bids. This is conditioned upon the final approval of USDA. DECISION MAKING METRICS: FINANCIAL: This is an estimated $9.1Million project which is an incredible undertaking of the City logistically and financially. Our utility enterprise funds appear to be able to support utility related expenses without rate increases. However, that has not been fully vetted through our staff and consultant team. There will be general fund debt as well that needs to be further examined during this bid let period as well in order to confirm affordability and comfort level of the city council. The city council will have the opportunity to amend or reject bids in full for various reasons. Affordability being one of the reasons. LEGAL: City Staff and its consultants have undertaken a considerable effort to achieve legal compliance for USDA financing. Currently, the city is awaiting the Notice to Proceed from the USDA General Counsel. The bid notice will not be published until that is received. Finally, sealed bids are required for a project of this size. COUNCIL ACTION REQUESTED: Adopt Resolution 24-19 approving plans and specifications and order the advertisement of bids for the 2025 Street Reconstruction Project. ATTACHMENTS: 1. Memo from City Engineer 2. Project Location Map 3. Resolution 24-19 [PAGE 53] MEMORANDUM Date: December 5, 2024 To: Nick Haggenmiller, City Administrator From: Joshua Halvorson, P.E. City Engineer Subject: USDA Phase 1 – Infrastructure Improvement Project Howard Lake, Minnesota BMI Project No.: 0W1.130734 It was March 20th, 2023, when a public hearing was held on the USDA preliminary engineering report (PER) and the Council acted by ordering the preparation of plans and specifications. Today, the USDA Phase 1 – Infrastructure Improvement Project plans & specifications have been completed. These improvements consist of the street and utility reconstruction on City streets per the attached Figure 1. The project design and preparation of construction documents tracked well with the PER with anticipated construction costs of the Phase 1 work at $9,097,000.00 which includes a 10% contingency. We have received approval from the USDA Engineer of such plans & specifications. Currently, we are waiting for final concurrence by the Federal USDA Office to seek competitive bids for the USDA Phase 1 Project. The following schedule is based on receiving USDA concurrence to bid prior to December 16, 2024: • Council Authorization to Bid: December 9, 2024 • Upload Bidding Documents*: December 17, 2024* • Bid Opening: January 24, 2025, at 2:00 PM • Accept Bids & Award Contract**: March 17, 2025** • Construction Start Date: June 1, 2025 • Substantial Completion: November 1, 2026 • Final Completion: June 15, 2027 *Upload date is contingent upon receiving USDA concurrence to bid. **Award date is contingent upon receiving USDA concurrence to award. At this time, we recommend that the City Council Execute the attached resolution approving the plans & specifications and authorize bidding as stated. The proposed schedule above is favorable as we enter the Minnesota winter bidding season. Attachments: Resolution Figure 1 – Project Location Map Construction Plan – Signed Title Sheet Project Manual – Certification Sheet S:\Council\2024\12. December 9, 2024\2024-12-09 130734 Howard Lake USDA Ph. 1 Memo Approve Plans and Specs Order Bids.docx [PAGE 54] CITY OF HOWARD LAKE, MINNESOTA CONSTRUCTION PLANS FOR USDA PHASE 1 - INFRASTRUCTURE IMPROVEMENT PROJECT RESOURCE LIST UTILITIES TDS Telecom GRADING, AGGREGATE BASE, BITUMINOUS PAVING, CURB & GUTTER, WALK, Brad Carlson CITY OF HOWARD LAKE GAS 316 Pine Street STORM SEWER, SANITARY SEWER, WATERMAIN, STREET IMPROVEMENTS CenterPoint Energy Monticello, MN 55362 City Hall Austin Sowers Phone: 320-485-2701 625 8th Avenue 700 West Linden Avenue Howard Lake, MN 55349 P.O Box 1165 ELECTRIC DECEMBER 2024 Phone: 320-543-3670 Minneapolis, MN 55440 Xcel Energy Phone: 612-321-5421 Sean Lawler City Administrator: austin.sowers@CenterPointEnergy.com 414 Nicollet Mall Nick Haggenmiller Minneapolis, MN 55401 625 8th Avenue Phone: 612-216-5695 Howard Lake, MN 55349 CenterPoint Energy sean.w.lawler@xcelenergy.com Office: 320-543-3670 Daniel Gibson Fax: 320-543-3306 700 West Linden Avenue cityadmin@howard-lake.mn.us P.O Box 1165 Minneapolis, MN 55440 Mayor: Phone: 612-321-5279 Pete Zimmerman Daniel.Gibson@CenterPointEnergy.com 625 8th Avenue Howard Lake, MN 55349 TELEPHONE Office: 320-543-3670 Windstream Communications Fax: 320-543-3306 Mike Althoff 63 Maple Ave N Public Works Lead: Maple Lake, MN 55358 Jared Merges Phone: 612-282-2331 R 625 8th Avenue Mike.Althoff@windstream.com Howard Lake, MN 55349 Cell: 320-469-3676 Mediacom Office: 320-543-3670 Bob Frazer Fax: 320-543-3306 1240 Highway 52 South jaredmerges@howard-lake.mn.us Chatfield, MN 55923 Cell: 612-812-5116 City Council Members: Office: 507-564-1134 Gene Gilbert bfrazer@mediacomcc.com Tom Kutz Al Munson CenturyLink / Lumen Jason Deiter Daniel Cobenais 2050 4th Street City Engineer: White Bear Lake, MN (Consultant) Cell: 612-500-6766 Joshua J. Halvorson P.E. daniel.cobenais@lumen.com Bolton & Menk, Inc. 2040 Highway 12 East Lauren Schmidt Willmar, MN 56201-5818 Cell: 612-432-7626 Phone: 320-231-3956 lschmidt@congruex.com Fax: 320-231-9710 Nuvera Todd Anderson Phone: 952-226-9902 ToddAnderson@nuvera.net PROJECT LOCATION NOTE: EXISTING UTILITY INFORMATION SHOWN ON THIS MAP LEGEND PLAN HAS BEEN PROVIDED BY THE UTILITY OWNER. THE 0 500 1000 MAP OF THE CONTRACTOR SHALL FIELD VERIFY EXACT LOCATIONS PRIOR CITY OF HOWARD LAKE TO COMMENCING CONSTRUCTION AS REQUIRED BY STATE SCALE FEET WRIGHT COUNTY, MN PROJECT LIMITS LAW. NOTIFY GOPHER STATE ONE CALL, 1-800-252-1166 OR 651-454-0002. BID LOCATION THE SUBSURFACE UTILITY INFORMATION IN THIS PLAN IS PROJECT DATUM: RECORD DRAWING INFORMATION UTILITY QUALITY LEVEL D. THIS UTILITY QUALITY LEVEL WAS BM=1018.15 DETERMINED ACCORDING TO THE GUIDELINES OF CI/ASCE HORIZONTAL: WRIGHT COUNTY COORDINATES OBSERVER: 38-22, ENTITLED "STANDARD GUIDELINES FOR RAILROAD B M R N ID D G O E T A Q B U 11 T 8 MENT OVER (NAD83, 1986 ADJUSTMENT) CONTRACTOR: INVESTIGATING AND DOCUMENTING EXISTING UTILITIES". COUNTY ROAD 6/10TH AVENUE VERTICAL: NAVD 88 DATE: SHEET 2040 HIGHWAY 12 EAST WILLMAR, MINNESOTA 56201 Phone: (320) 231-3956 Email: Willmar@bolton-menk.com R www.bolton-menk.com devreseR sthgiR llA ,4202 .cnI ,kneM & notloB c MP 44:60:21 4202/5/21 gwd.100G437031\D3C\DAC\4370311W0\KALH\:H PROJECT LOCATION 4TH STREET 4TH STREET 5TH STREET 6TH STREET / TH 12 PROJECT LOCATION WRIGHT COUNTY I B H Y E M R E E B O Y R C U ER N T D I E FY R T M H Y A D T I T R H E I C S T P S L U A P N E , R S V P I E S C IO IF N IC A A N TI D O T N H , A O T R I R A E M PO A R T D U W L A Y S L I P C R E E N P S A E R D ED DESIGNED DTI NO. ISSU B E I D D FOR 12/0 D 9 A / TE 2024 CITY OF HOWARD LAKE, MINNESOTA PROFESSIONAL ENGINEER UNDER THE LAWS OF THE STATE OF MINNESOTA. DRAWN LV, JS, IA USDA PHASE 1 - INFRASTRUCTURE IMPROVEMENT PROJECT G0.01 CHECKED JOSHUA J. HALVORSON JJH TITLE SHEET LIC. NO. 46291 DATE 12/09/2024 CLIE 0 N W T PR 1 O . J 1 . N 3 O 0 . 734 EUNEVA HT31 EUNEVA HT21 EUNEVA HT11 EUNEVA HT01 EUNEVA HT9 EUNEVA HT8 EUNEVA HT7 EUNEVA HT6 EUNEVA HT5 SHEET NUMBER SHEET TITLE SHEET NUMBER SHEET TITLE GENERAL CIVIL G0.01 - G0.03 TITLE SHEET, LEGEND, GENERAL NOTES STREET PLAN & PROFILE G1.01 - G1.02 ESTIMATED QUANTITIES C6.12 - C6.13 11TH STREET G2.01 - G2.03 EXISTING UTILITY MAPS C6.14 -C6.15 10TH STREET G2.04 - G2.06 PROPOSED UTILITY MAPS C6.16 - C6.17 9TH STREET CIVIL C6.18 8TH STREET EXISTING CONDITIONS, REMOVALS & DETAILS C6.19 - C6.20 5TH STREET C0.01 - C0.13 EXISTING CONDITIONS & REMOVALS PLAN C6.21 - C6.23 4TH STREET C1.01 - C1.06 TYPICAL SECTIONS INTERSECTION DETAILS C1.07 - C1.32 DETAILS C6.24 13TH AVENUE & 6TH STREET STORMWATER POLLUTION PREVENTION PLAN C6.25 13TH AVENUE & 5TH STREET (SWPPP) C6.26 - C6.27 13TH AVENUE & 4TH STREET C2.01 - C2.03 PROJECT INFORMATION, NARRATIVE, SOILS MAP C6.28 12TH AVENUE & 7TH STREET C2.04 - C2.05 DETAILS C6.29 12TH AVENUE & 5TH STREET C2.06 - C2.18 SWPPP PLANS C6.30 12TH AVENUE & 4TH STREET SANITARY SEWER PLAN & PROFILE C6.31 11TH AVENUE & 5TH STREET C4.01 - C4.02 13TH AVENUE C6.32 11TH AVENUE & 4TH STREET C4.03 12TH AVENUE C6.33 10TH AVENUE & 4TH STREET C4.04 11TH AVENUE C6.34 8TH AVENUE & HAYWOOD DRIVE C4.05 - C4.08 8TH AVENUE C6.35 8TH AVENUE & 11TH STREET C4.09 5TH AVENUE C6.36 8TH AVENUE & 10TH STREET C4.10 11TH STREET C6.37 8TH AVENUE & 9TH STREET 7TH STREET C4.11 10TH STREET C6.38 8TH AVENUE & 8TH STREET C4.12 9TH STREET C6.39 8TH AVENUE & 7TH STREET C4.13 - C4.14 5TH STREET C6.40 5TH AVENUE & 10TH STREET 8TH STREET C4.15 - C4.17 4TH STREET C6.41 5TH AVENUE & 9TH STREET WATERMIAN PLAN & PROFILE C6.42 5TH AVENUE CUL-DU-SAC 9TH STREET C4.18 - C4.19 13TH AVENUE C6.43 4TH STREET C4.20 11TH AVENUE PEDESTRIAN RAMP DETAILS C4.21 - C4.24 8TH AVENUE C6.44 - C6.49 PEDESTRIAN RAMPS C4.25 5TH AVENUE TRAFFIC CONTROL 10TH STREET C4.26 - C4.27 11TH STREET C7.01 - C7.15 TRAFFIC CONTROL PLAN C4.28 10TH STREET CROSS SECTIONS 11TH STREET C4.29 - C4.30 9TH STREET C4.31 8TH STREET C8.01 - C8.05 13TH AVENUE C4.32 - C4.33 5TH STREET C8.06 - C8.10 12TH AVENUE 12TH STREET C4.34 - C4.36 4TH STREET C8.11 - C8.13 11TH AVENUE STORM SEWER PLAN & PROFILE C8.14 - C8.25 8TH AVENUE C8.26 - C8.28 5TH AVENUE C5.01 13TH AVENUE HAYWOOD DR C5.02 12TH AVENUE C8.29 - C8.33 11TH STREET C8.34 - C8.35 10TH STREET C5.03 - C5.07 8TH AVENUE C8.36 - C8.39 9TH STREET C5.08 10TH STREET DRAIN CONNECTION C8.40 - C8.44 8TH STREET C5.09 10TH STREET ALLEY - YARD STORM LEAD C8.45 - C8.48 5TH STREET C5.10 5TH AVENUE OUTLET C8.49 - C8.55 4TH STREET C5.11 - C5.12 5TH STREET ELECTRICAL C5.13 - C5.15 4TH STREET ELECTRICAL PLANS STREET PLAN & PROFILE E1.01 - E1.03 DETAILS C6.01 - 6.02 13TH AVENUNE E1.04 - E1.05 EXISTING CONDITIONS C6.03 - 6.04 12TH AVENUE E1.06 8TH AVENUE C6.05 11TH AVENUE C6.06 - C6.09 8TH AVENUE THIS PLAN SET CONTAINS 250 SHEETS. C6.10 5TH AVENUE C6.11 5TH AVENUE PARKING LOT 6 HASC 7 HASC BNSF RAILROAD **XCEL ENERGY HAS A HIGH VOLTAGE TRANSMISSION LINE LOCATED ALONG 13TH AVENUE (69 KV) [PAGE 55] MP 90:60:21 4202/4/21 gwd.PAM TEERTS TCEJORP-437031-CSIM\D3C\DAC\4370311W0\KALH\:H PHASE 2 UTILITY IMPROVEMENT PROJECT Figure 1: PROJECT LOCATION MAP CITY OF HOWARD LAKE DECEMBER 2024 R 6TH STREET / TH 12 7TH STREET EUNEVA HT8 8TH STREET 9TH STREET 10TH STREET 11TH STREET 13TH STREET HAYWOOD DRIVE EUNEVA HT01 EUNEVA HT9 EUNEVA HT7 EUNEVA HT6 EUNEVA HT5 4TH STREET 5TH STREET EUNEVA HT31 EUNEVA HT21 EUNEVA HT11 6TH STREET / TH 12 12TH STREET EUNEVA HT21 R 0 300 600 HORZ. SCALE FEET LEGEND STREET & UTILITY RECONSTRUCTION STREET RECONSTRUCTION [PAGE 56] CITY OF HOWARD LAKE RESOLUTION 24-19 APPROVING PLANS & SPECIFICATION AND ORDERING ADVERTISEMENT FOR BIDS AS PART OF THE HOWARD LAKE USDA PHASE 1 – INFRASTRUTURE IMPROVMENT PROJECT WHEREAS, pursuant to a resolution passed by the council March 20, 2023 the city engineer (consulting engineer retained for the purpose) has prepared plans and specifications for the improvement of the Howard Lake USDA Phase 1 – Infrastructure Improvement Project and has presented such plans and specifications to the council for approval contingent upon receiving concurrence to bid from the United States Department of Agriculture (USDA) Rural Development; NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF HOWARD LAKE, WRIGHT COUNTY, MINNESOTA THAT: 1. Such plans and specifications prepared for the project as referenced by the title sheets attached here to and is made entirely a part hereof, are hereby approved. 2. The City Engineer shall prepare and cause to be inserted in the official paper (and electronically thru Quest CDN) an advertisement for bids upon the making of such improvement under such approved plans and specifications. The advertisement shall be published for a minimum of 21 day, shall specify the work to be done, shall state that bids will be received thru Quest CDN until 2:00 p.m. on January 24th, 2025, at which time they will be publicly opened in the council chambers of the city hall by the City Administrator and Engineer, will then be tabulated, and will be considered by the council at 7:00 p.m. on March 17th 2025, in the council chambers of the city hall. Any bidder whose responsibility is questioned during consideration of the bid will be given an opportunity to address the council on the issue of responsibility. No bids will be considered unless submitted according to the instruction to bidders within the contract. 3. Such resolution is contingent upon receiving concurrence to bid from the United States Department of Agriculture (USDA) Rural Development on the project. Adopted by the Council on this 9th day of December, 2024. SIGNED: WITNESSED: ___________________________ ____________________________ Peter Zimmerman, Mayor Nick Haggenmiller, City Administrator