HomeMy WebLinkAbout01/28/2025LAUDERDALE CITY COUNCIL MEETING AGENDA
7:00 P.M. TUESDAY, JANUARY 28, 2025
LAUDERDALE CITY HALL, 1891 WALNUT STREET
The City Council is meeting as a legislative body to conduct the business of the City according to
Robert's Rules of Order and the Standing Rules of Order and Business of the City Council. Unless so
ordered by the Mayor, citizen participation is limited to the times indicated and always within the
prescribed rules of conduct for public input at meetings.
1. CALL TO ORDER
2. SWEARING IN OF NEWLY ELECTED OFFICIAL
a. Duane Pulford
3. ROLL CALL
4. APPROVALS
a. Agenda
b. Minutes of the January 14, 2025 City Council Meeting
c. Claims Totaling $26,375.70
5. CONSENT
a. Fourth Quarter Investment Report
b. Hiring of Temporary Administrative Employee
c. Resolution No. 012825A — Approving the 2025 Tobacco Licenses
d. Resolution No. 012825B — Approving the 3.2 Off -Sale Malt Liquor Licenses for 2025
6. SPECIAL ORDER OF BUSINESS/RECOGNITIONS/PROCLAMATIONS
7. INFORMATIONAL PRESENTATIONS / REPORTS
8. PUBLIC HEARINGS
Public hearings are conducted so that the public affected by a proposal may have input into the decision.
During hearings all affected residents will be given an opportunity to speak pursuant to the Robert's
Rules of Order and the standing rules of order and business of the City Council.
9. DISCUSSION / ACTION ITEM
a. Municipal Cannabis Feasibility Report
10. ITEMS REMOVED FROM THE CONSENT AGENDA
11. ADDITIONAL ITEMS
12. SET AGENDA FOR NEXT MEETING
a. Cooperative Agreement with Ramsey County Regarding Eustis Street
b. NineNorth and Cable Commission Update by Jeff Ongstad (March 25)
13. WORK SESSION
a. Community Development Updates
b. Opportunity for the Public to Address the City Council
Any member of the public may speak at this time on any item not on the agenda. In consideration for
the public attending the meeting, this portion of the meeting will be limited to fifteen (15) minutes.
Individuals are requested to limit their comments to three (3) minutes or less. If the majority of the
Council determines that additional time on a specific issue is warranted, then discussion on that issue
shall be continued at the end of the agenda. Before addressing the City Council, members of the public
are asked to step up to the microphone, give their name, address, and state the subject to be discussed.
All remarks shall be addressed to the Council as a whole and not to any member thereof. No person
other than members of the Council and the person having the floor shall be permitted to enter any
discussion without permission of the presiding officer.
Your participation, as prescribed by the Robert's Rules of Order and the standing rules of order and
business of the City Council, is welcomed and your cooperation is greatly appreciated.
14. ADJOURNMENT
You are invited to a Zoom webinar!
When: Jan 28, 2025 07:00 PM Central Time (US and Canada)
Topic: January 28, 2025 Lauderdale City Council Webinar
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LAUDERDALE CITY COUNCIL
MEETING MINUTES
Lauderdale City Hall
1891 Walnut Street
Lauderdale, MN 55113
Page 1 of 3 January 14, 2024
Swearing in of Newly Elected Officials
Administrator Butkowski performed the swearing in ceremony for Mayor Gaasch in person and
Councilor Dains via Zoom.
Ca1I to Order
Mayor Gaasch called the Regular City Council meeting to order at 7:05 p.m.
Roll Ca11
Councilors present: Evan Sayre, Sharon Kelly, Jeff Dains via Zoom, and Mayor Mary Gaasch.
Councilor absent: Duane Pulford.
Staff present: Heather Butkowski, City Administrator; Jim Bownik, Assistant to the City
Administrator; and Miles Cline, Deputy City Clerk.
Approvals
Mayor Gaasch asked if there were any additions to the meeting agenda: There being none,
Councilor Dains moved and seconded by Councilor Kelly to approve the agenda. Motion carried
unanimously.
Mayor Gaasch asked if there were corrections to the minutes of the December 10, 2024, City
Council meeting. There being none, Councilor Sayre moved and seconded by Councilor Kelly to
approve the December 10, 2024, City Council meeting minutes. Motion carried unanimously.
Mayor Gaasch asked if there were any questions on the claims. Councilor Kelly asked about the
higher than normal total. Staff responded that the time frame for the claims covered five weeks
instead of two and included the annual 2019 Improvement Project bond payment. Councilor
Kelly moved and seconded by Councilor Dains to approve the claims totaling $395,089.64.
Motion carried unanimously.
Consent
Councilor Sayre moved and seconded by Councilor Dains to approve the Consent Agenda
thereby acknowledging the November financial report and December financial report and
approving Resolution No. 011425A - Designating Official Depository and Investment
Institutions, and establishing the 2025 City Council Meeting Schedule
Public Hearings
A. Resolution No. 011425B — Establishing 2025 License and Permit Fees and Administrative
Fees and Fines
At the end of each year, staff reviews the fee schedule in anticipation of the year ahead. Many
fees haven't changed in years, even a decade or more. Staff noted in red recommended fee
LAUDERDALE CITY COUNCIL
MEETING MINUTES
Lauderdale City Hall
1891 Walnut Street
Lauderdale, MN 55113
Page 2 of 3 January 14, 2024
increases. Butkowski said are significant increases, but more closely reflect the cost in staff time.
Staff prefer to change the fees infrequently because it results in sizable work to update all our
forms with the new fees. Prior to adopting the fee schedule, the city council must hold a public
hearing.
Mayor Gaasch opened the floor at 7:11 p.m. to those interested in addressing the Council. There
being nobody interested in speaking, Mayor Gaasch closed the floor at 7:12 p.m.
Councilor Kelly made a motion to adopt Resolution No. 011425B - A Resolution Establishing
2025 License and Permit Fees, and Administrative Fees and Fines. This was seconded by
Councilor Sayre and carried unanimously.
Discussion/Action Item
A. Metropolitan Council 2025 Private Property Inflow and Infiltration Grant Agreement
Butkowski explained the City was awarded a $25,000 Private Property Inflow and Infiltration
Grant from the Metropolitan Council for 2025. The grant provides Lauderdale residents with
grants up to $5,000 to help with sanitary sewer repairs that will prevent clear water (rain and
ground water) from entering the wastewater treatment system. In 2024, the City was awarded
$16,000 in grant funds.
Certain work qualifies and the grant pays up to 50% of eligible costs for:
• Private lateral repair and/or replacement
• Foundation drain disconnects with new sump pump, if associated with the foundation
drain disconnect
• Sewer lateral inspection and cleaning costs if televising and cleaning result in repair or
replacement of sewer lateral
To proceed, the Council must approve the grant agreement.
Councilor Dains made a motion to approve the Metropolitan Council 2025 Private Property
Inflow and Infiltration (I/I) Grant Agreement No. SG-22740. This was seconded by Councilor
Kelly and carried unanimously.
B. 2025 Committee Appointments and Assignments
The Council determines committee assignments and makes other designations at the beginning
of the year. Staff carried over the assignments from 2024 to 2025 and noted where new
appointments need to be made. Staff will revise the form based on the discussion.
Councilor Kelly made a motion to approve the committee assignments as discussed. This was
seconded by Councilor Sayre and carried unanimously.
LAUDERDALE CITY COUNCIL
MEETING MINUTES
Lauderdale City Hall
1891 Walnut Street
Lauderdale, MN 55113
Page 3 of 3 January 14, 2024
Set Agenda for Next Meeting
Butkowski stated that the January 28 Council meeting might include the fourth quarter
investment report and the municipal cannabis feasibility report.
Work Session
A. Community Development Update
Butkowski stated that staff is working on audit preparation this week, with the formal audit being
at the end of January. Staff learned that in the mid-1990s when Larpenteur Avenue was
reconstructed, the City took ownership of the storm sewer trunk line in Eustis Street south of
Larpenteur Avenue. Staff will review the condition of the pipe based on televising provided by
Ramsey County and determine if repairs are needed in advance of the County project. Finally,
Butkowski attended the recent Ramsey County engineers meeting to further efforts to reduce
shared costs for non-MSA cities during Ramsey County road projects.
B. Opportunity for the Public to Address the City Council
Mayor Gaasch opened the floor to those interested in addressing the Council.
Greg Williams, 1626 Rose Hill Circle, approached the Council to play an MP3 recording that
noted his suggestions for the Environment and Sustainability Commission.
There being nobody else interested in speaking, Mayor Gaasch closed the floor.
Adjournment
Councilor Sayre moved and seconded by Councilor Kelly to adjourn the meeting at 7:35 p.m.
Motion carried unanimously.
Respectfully submitted,
Miles Cline
Deputy City Clerk
CITY OF LAUDERDALE
LAUDERDALE CITY HALL
1 891 WALNUT STREET
LAUDERDALE, MN 55113
651-792-7650
651-631-2066 FAx
Request for Council Action
To: Mayor and City Council
From: City Administrator
Meeting Date: January 28, 2025
Subject: List of Claims
The claims totaling $26,375.70 are provided for City Council review and approval that
includes check numbers 29244 to 29259.
Accounts Payable
Checks by Date - Detail by Check Date
User:
Printed:
miles.cline
1/23/2025 2:53 PM
Check No Vendor No
Invoice No
Vendor Name
Description
Check Date
Reference
Check Amount
ACH 34
ACH 389
ACH 415
ACH 423
ACH 43
ACH 44
ACH 45
ACH 46
29244 192
AFSCME MN Council 5 01/17/2025
PR Batch 50200.01.2025 Union Dues PR Batch 50200.01.2025 Uni(
Total for this ACH Check for Vendor 34:
BCBSM Inc 01/17/2025
PR Batch 50200.01.2025 Vision Insurance PR Batch 50200.01.2025 Visi,
Total for this ACH Check for Vendor 389:
Securian Life Insurance Company 01/17/2025
PR Batch 50200.01.2025 Life Insurance PR Batch 50200.01.2025 Life
Total for this ACH Check for Vendor 415:
Madison National Life Ins Co Inc
PR Batch 50200.01.2025 Short Tenn Disability
PR Batch 50200.01.2025 Long Term Disability
01/17/2025
PR Batch 50200.01.2025 Shell
PR Batch 50200.01.2025 Lon.
Total for this ACH Check for Vendor 423:
Public Employees Retirement Association
PR Batch 50200.01.2025 PERA Coordinated
PR Batch 50200.01.2025 PERA Coordinated
01/17/2025
PR Batch 50200.01.2025 PER
PR Batch 50200.01.2025 PER
Total for this ACH Check for Vendor 43:
Minnesota Department of Revenue
PR Batch 50200.01.2025 State Income Tax
01/17/2025
PR Batch 50200.01.2025 Stab
Total for this ACH Check for Vendor 44:
ICMA Retirement Corporation
PR Batch 50200.01.2025 Deferred Comp
PR Batch 50200.01.2025 Deferred Comp
01/17/2025
PR Batch 50200.01.2025 Def<
PR Batch 50200.01.2025 Def
Total for this ACH Check for Vendor 45:
Internal Revenue Service
PR Batch 50200.01.2025 FICA Employer Portio:
PR Batch 50200.01.2025 Medicare Employer Po
PR Batch 50200.01.2025 FICA Employee Portio
PR Batch 50200.01.2025 Medicare Employee Pc
PR Batch 50200.01.2025 Federal Income Tax
Comcast Holdings Corporation
01/17/2025
PR Batch 50200.01.2025 FIC.
PR Batch 50200.01.2025 Mee
PR Batch 50200.01.2025 FIC.
PR Batch 50200.01.2025 Mec
PR Batch 50200.01.2025 Fed(
Total for this ACH Check for Vendor 46:
Total for 1/17/2025:
01/28/2025
249.92
249.92
12.82
12.82
229.23
229.23
85.38
92.46
177.84
1,448.78
1,255.61
2,704.39
913.94
913.94
1,788.61
1,083.23
2,871.84
1,520.36
355.60
1,520.36
355.60
2,427.05
6,178.97
13,338.95
AP Checks by Date - Detail by Check Date (1/23/2025 2:53 PM) Page 1
Check No Vendor No
Invoice No
Vendor Name
Description
Check Date
Reference
Check Amount
230237911 January Internet 413.00
29245 25 County of Ramsey
EMCOM-012168 December Fleet Support
EMCOM-012183 December CAD Services
EMCOM-012199 December 911 Dispatch Services
29246 25
PRRRV-003315
County of Ramsey
2025 Election Services
29247 25 County of Ramsey
PRRRV-003247 Truth in Taxation Notice
Total for Check Number 29244: 413.00
01/28/2025
6.24
74.58
485.08
Total for Check Number 29245: 565.90
01/28/2025
2,658.00
Total for Check Number 29246: 2,658.00
01/28/2025
230.15
Total for Check Number 29247: 230.15
29248 19 Ehlers and Associates Inc 01/28/2025
1461 2024 Second Half TIF Payment Calculations 147.50
Total for Check Number 29248: 147.50
29249 31 Kennedy & Graven Chartered 01/28/2025
185814 December Legal Services 1,521.00
Total for Check Number 29249: 1,521.00
29250 185 Lauderdale Certified Auto Repair Inc 01/28/2025
122024 December Fuel 74.43
122024 December Fuel 15.95
122024 December Fuel 15.95
Total for Check Number 29250: 106.33
29251 30 League of Minnesota Cities 01/28/2025
419929 MN Cities Stormwater Coalition Contributions 600.00
Total for Check Number 29251: 600.00
29252 114 Metro Cities 01/28/2025
2084 2025 Membership Dues 1,093.00
29253 10
0001839490
29254 388
PS-INV 106469
Total for Check Number 29252: 1,093.00
On Site Sanitation Inc 01/28/2025
01/18/2025 - 02/14/2025 Park Portable Restroon 101.00
Total for Check Number 29253: 101.00
PeopleService Inc 01/28/2025
February Wastewater 660.00
Total for Check Number 29254: 660.00
29255 435 Point Seven LLC 01/28/2025
2109 Second Half Payment - Cannabis Financial Modi 3,250.00
Total for Check Number 29255: 3,250.00
AP Checks by Date - Detail by Check Date (1/23/2025 2:53 PM) Page 2
Check No Vendor No
Invoice No
Vendor Name
Description
Check Date
Reference
Check Atnou nt
29256 5
619861-12-24
29257 135
1224572525
Premium Waters Inc
December Water Service
St Paul Pioneer Press
Publish Ord. 24-03
01/28/2025
30.88
Total for Check Number 29256: 30.88
01/28/2025
34.84
Total for Check Number 29257: 34.84
29258 425 Vestis 01/28/2025
6290328681 January Uniforms 22.77
6290328681 January Uniforms 22.76
6290330916 January Uniforms 22.76
6290330916 January Uniforms 22.77
Total for Check Number 29258: 91.06
29259 74 Xcel Energy 01/28/2025
909699204 1891 Walnut Street 475.72
909699204 LarpenteurAvenue Bridge Lights 38.43
909699204 1885 Fulham Street 122.57
909699204 Street Lighting December 454.72
909699204 1885 Fulham Street 85.66
909699204 1917 Walnut Street 170.89
909699204 1891 Walnut Street 161.58
909699204 1917 Walnut Street 24.52
Total for Check Number 29259: 1,534.09
Total for 1/28/2025: 13,036.75
Report Total (24 checks): 26,375.70
AP Checks by Date - Detail by Check Date (1/23/2025 2:53 PM) Page 3
LAUDERDALE COUNCIL
ACTION FORM
Action Requested
Consent X
Public Hearing
Discussion
Action
Resolution
Work Session
Meeting Date
January 28, 2025
ITEM NUMBER 4Q24 Investment Report
STAFF INITIAL
APPROVED BY ADMINISTRATOR
DESCRIPTION OF ISSUE AND PAST COUNCIL ACTION:
Following is the Fourth Quarter Investment Report for 2024.
OPTIONS:
STAFF RECOMMENDATION:
By approving the Consent Agenda, the Council acknowledges the investment report for Oc-
tober December 2024.
COUNCIL ACTION:
Fourth Quarter 2024
Investment Report
INVESTMENTS
As of December 31, 2024, the City had the following amounts with official depositories:
North Star Bank
4M Fund
RBC Dain Rauscher
Northland Securities
TOTAL
110
36%
/la 26%
31%
$ 296,184
1,110, 082
1,294,937
1,503,868
$ 4,205,071
❑ North Star
■ 4M Fund
■ RBC Dain Rauscher
❑ Northland Securities
2
DEPOSITORIES AND INVESTMENT TYPES
North Star Bank
Checking Account
4M Fund
Joint Powers Investment
RBC Dain Rauscher
US Government Securities
Certificates of Deposit
Northland Securities
Money Market Account
Certificates of Deposit
$ 296,184
$ 1,110,082
$ 0
$ 1, 294,937 (13)
$ 103,868
$ 1,400,000 (14)
The City's Investment Policy sets some perimeters for investments, such as no more
than 60% of the investment portfolio, or $2,000,000 (whichever is Tess) shall be invested
with any one investment company. No investments shall be made with a term over ten
years unless with prior approval from the City Council.
3
INVESTMENT TERM
Liquid assets are money market accounts.
1-5 Years are made up of certificate of deposit and US Government Instrumentality
Securities.
6-10 Years are US Government Instrumentality Securities.
11-15 Years are US Government Instrumentality Securities.
15+ Years are US Government Instrumentality Securities and bonds.
US Government Instrumentality Securities are financial intermediaries established by
the federal government to fund loans to certain groups of borrowers, such as
homeowners, farmers and students. Most active issuers are Federal Home Loan Bank,
Federal National Mortgage Association (Fannie Mae) and Tennessee Valley Authority.
Maturities range from three months to 30 years with fixed interest rates.
4
50
40
30
20
10
0
40
30
20
10
0
EOY 2023 Investment Portfolio by Holding Period
■ Liquid Accounts
■ 1 Year
❑ 2 Years
03 Years
❑ 4 Years
Fourth Quarter 2024 Investment Portfolio by Holding Period
■ Liquid Accounts
■ Up to 1 Year
❑ 12-24 Months
❑ 24-36 Months
036-48 Months
■ 48+ Months
5
INVESTMENT TYPES
Money Market $ 1,213,950
Bonds 0
Certificates of Deposit 2,694,937
US Government Securities 0
US Government � Bonds
Securities
Certificates of
Deposit
Money Market
Maturity Date Type
9/23/2027
1/19/2027
1/19/2027
12/4/2026
11/9/2026
10/7/2026
9/21/2026
9/11/2026
7/17/2026
6/11/2026
6/11/2026
5/11/2026
3/13/2026
3/13/2026
2/6/2026
12/11/2025
12/10/2025
11/13/2025
9/11/2025
8/26/2025
8/11/2025
8/11/2025
8/11/2025
8/8/2025
8/8/2025
5/14/2025
2/11/2025
2/11/2025
2/3/2025
2/3/2025
1/16/2025
CD
CD
CD
Interest
Rate
3.90%
4.05%
3.85%
CD 4.20%
CD 4.15%
CD 4.25%
CD 4.00%
CD 3.95%
CD 4.23%
CD 4.20%
CD 4.40%
CD 4.25%
CD 4.15%
CD 4.40%
CD 4.40%
CD 4.25%
CD 4.40%
CD 4.50%
CD 4.45%
CD 0.70%
CD 5.05%
CD 5.05%
CD 5.05%
CD 5.40%
CD 5.40%
CD 4.70%
CD 5.20%
CD 5.20%
CD 4.50%
CD 4.50%
CD 4.80%
12/10/2024 CD 0.90%
Investment Schedule
Investment
Broker
RBC
RBC
RBC
RBC
Northland
RBC
RBC
RBC
RBC
Northland
RBC
Northland
RBC
Northland
Northland
Northland
RBC
Northland
Northland
Northland
Northland
Northland
Northland
RBC
RBC
Northland
Northland
Northland
RBC
RBC
RBC
Amount
100,000.00
100,000.00
100,000.00
100, 000.00
100,000.00
100,000.00
100,000.00
100,000.00
100,000.00
100,000.00
100,000.00
100,000.00
100,000.00
100,000.00
100,000.00
100,000.00
100,000.00
100,000.00
100,000.00
100,000.00
100,000.00
100,000.00
100,000.00
100,000.00
100,000.00
100,000.00
100, 000.00
100,000.00
100,000.00
100,000.00
100,000.00
Bank
Northeast Bank
Gate City Bank
Blue Ridge Bank
State Bank of India
DMB Community Bannk
JP Morgan Chase Bank
First National Bank Sioux
Falls
American Express
Texas Exchange Bank,
Crowley
Preferred Bank, CA
Washington Fed Bank
Seattle
First Federal Savings Bank
Israel Disc Bank
Austin Telco Fed CU
Freedom Bank (TX)
Barclays Bank
Flagstar Bank NA
Enterprise Bank
Technology CU San Jose
Toyota Savings Bank
First Foundation Bank
Sallie Mae Bank
Townebank Portsmouth VA
Incredible Bank
US Bank Nat'l
Southern First Bank
Morgan Stanley Bank
Morgan Stanley Private
Bank
Wells Fargo Bank Nat'l
Sandy Springs
Western Alliance Bank
Northland 100,000.00 Synchrony Bank
The investment in blue matured this quarter. Staff purchased six investments in the
fourth quarter noted in red. Staff plan to continue investing in non -callable CDs to
guarantee good yield over the next three years in spite of ebbs in the market. The City
continues to hold a one sub one percent investment purchased before the interest rate
increases.
7
INTEREST EARNINGS
The following chart shows the interest earnings since 2005 with 2007 being our best
year with earnings of $161,884. Investment interest earned through the end of 2023
totaled $106,702.21. Investment interest through the end 2024 totaled $150,812.11.
Most of the increase is from higher yields at the 4M Fund. Ideally in 2025 the City will
best the 2007 interest record.
180,000
160,000
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0
In f0 h CO Q)
O O O O O
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r
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r
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4
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r
•
• From "Cash Bal
• Investments
Fund 101 Baler
•
Investments
Interest
New Balance
d
_
y
V
N gggg_ _
_ _ _
_ _
r r
v
V
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m �
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r
- - 106,108.90 106,108.90 -
- 100,458.63 - - 458.63
- 2,722.19 - - 2,722.19
- 2,268.49 - - 2,268.49
- 382.19 - - 382.19
- 42.47 - - 42.47
- 25.48 - - 25.48
- 150.00 - - 150.00
- 59.45 - - 59.45
- 106,108.90 106,108,90 106,108.90 6,108.90
- - 106,108.90 100,000.00 3,575.08
- - - - 2,256.48
- - 106,108.90 100,000.00 5,831.56
500,000.00 I 428,502.59 I 534,611.49 I 706,108.90 I 34,802.36
From "Cash Balances" Report
Investments 3,767,113.31
Fund 101 Balance 2,865,240.06
901,873,25
Investments 3,767,113.31
Interest 34,802.36
New Balance 3,801,815.67
d d
n N
r r r r r r r
r
r r r r r r
0 0
0 0
0 0
0 0
0 o
r
M 2 r r
b
0 0
V
o
b
F O
1-
a'
, 100,000.00 - - - -
100,000.00 - - -
- 458.63 - - 458.63
382.19 - - 382.19
100,000.00 - - - -
- 42.47 - - 42.47
25.48 - - 25.48
59.45 - - 59.45
300,000.00 968.22 - 968.22
-
- 500,000.00 968.22 - 4,670.37
- - - - 2,404.18
500,000.00 968.22 - 7,074.55
300,000.00 ( 500,968.22 1 968.22 I - I 8,938.15
From "Cash Balances" Report
Investments 3,858,175.16
Fund 101 Balance 2,816,514.95
1,041,660,21
Investments 3,858,175.16
Interest 8,938.15
New Balance 3,867,013.31
ma
4,058,075.16
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382.19 - - 382.19
- 42.47 - - 42.47
- 25.48 - - 25.48
- 100,059.45 - - 59.45
- 100,509.59 100,509.59 100,509.59 509.59
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- - - - 2,361.00
- 100,509.59 - 4,129.03
- I 102,829.32 I 203,338.91 I 100,509.59 1 7,581.06
From "Cash Balances" Report
Investments 3,378,645.17
Fund 101 Balance 2,844,375.73
534,269.44
Investments 3,378,645.17
Interest 7,581.06
New Balance 3,386,126.23
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- 41.10 - - 41.10
- 24.66 - - 24.66
- 57.53 - - 57.53
- 493.15 - - 493.15
493.15 150,000.00 1,889.58
- 2,431.68
493.15 150,000.00 4,321.26
4,865.75 4,865.75 ( 150,000.00 1 9,814.72
From "Cash Balances" Report
Investments 3,368,830.45
Fund 101 Balance 2,849,196.75
519,633.70
Investments 3,368,830.45
Interest 9,814.72
New Balance 3,378,545.17
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- 509.59 509.59 509.59 509.59
- - 509.59 300,000.00 2,735.10
- - - - 2,354.34
- - 509.59 300,000.00 5,089.44
2,378.09 2887.681__ 300,509.5918,062.37_I
From "Cash Balances" Report
Investments 3,510,768.08
Fund 101 Balance 2.874,843.87
635,924.21
Investments 3,510,768.08
Interest 8,062.37
New Balance 3,518,730.45
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From "Cash Balances" Report
Investments 3,534,387.55
Fund 101 Balance 3,086,408.75
447,978.80
Investments 3,534,387.55
Interest 7,428.43
New Balance 3,541,715.98
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700,000.00 I 202,250.69 1 2,632.88 I 500,382.19 I 8,675.00
From "Cash Balances" Report
Investments 3,625,712.55
Fund 101 Balance 3,025,332.62
600,379.93
Investments 3,625,712.55
Interest 8,675.00
New Balance 3,634,287.55
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- 100,150,00 - - 150.00
- 405,536.58 - 5,536.58
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382.19 405,918.77 5,978.45
- 1 520,630.55 I 520,630.55 - A 27,295.54
From "Cash Balances" Report
Investments 3,598,417.01
Fund 101 Balance 2,884,171.74
714,245.27
Investments 3,598,417.01
Interest 27,295.54
New Balance 3,625,612.55
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- - 204,649.04 - 5,078.57
- 6,457.26 1 211,106.30 I 4,649.04 I 12,190.78
From "Cash Balances" Report
Investments 3,586,226.23
Fund 101 Balance 2,729,884.66
856,341.57
Investments 3,586,226.23
Interest 12,190.78
New Balance 3,598,317.01
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From "Cash Balances" Report
Investments 3,901,844.99
Fund 101 Balance 3,058,259.04
843,585.95
Investments 3,901,844.99
Interest 7,142.27
New Balance 3,908,887.26
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Investments 3,441,815.98
Fund 101 Balance 2,888,774.99
553,040.99
Investments 3,441,815.98
Interest 10,029.01
New Balance 3,451,744.99
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LAUDERDALE COUNCIL
ACTION FORM
Meeting Date January 28, 2025
Agenda Item Temp Employee
Action Requested
Consent 0 Public Hearing
Action ❑ Resolution
Discussion ❑
Work Session ❑
DESCRIPTION OF ISSUE AND PAST COUNCIL ACTION:
This summer the City shared an intern with the City of Falcon Heights. William Farley studied
abroad this fall but is back. The City Council hired him to work on organizing and digitizing city
records in January. He completed a lot but there is so much left to do. Staff is asking for the
Council to hire William for sixteen hours each month at $20.00 per hour from February through
May. This was the rate he was hired for as an intern.
STAFF RECOMMENDATION:
By approving the Consent Agenda, the Council hires William Farley for up to 16 hours per month
from February through May at a rate of $20.00 per hour.
LAUDERDALE COUNCIL
ACTION FORM
Meeting Date January 28, 2025
Agenda Item 2025 Tobacco Licenses
Action Requested
Consent 101 Public Hearing ❑ Discussion ❑
Action ❑ Resolution Work Session ❑
DESCRIPTION OF ISSUE AND PAST COUNCIL ACTION:
The City has received applications for renewal of tobacco licenses. The licenses would be valid
January 1, 2025 December 31, 2025.
Larpenteur SuperUSA - 2424 Larpenteur Avenue West
Lauderdale Certified Auto Repair (BP Station) - 2421 Larpenteur Avenue West
STAFF RECOMMENDATION:
By approving the Consent Agenda, the Council adopts Resolution No. 012825A Approving the
2025 Tobacco Licenses.
RESOLUTION NO. 012825A
CITY OF LAUDERDALE
COUNTY OF RAMSEY
STATE OF MINNESOTA
APPROVING 2025 TOBACCO LICENSES
WHEREAS, the following applicants:
Larpenteur SuperUSA 2424 Larpenteur Avenue W
Lauderdale Certified Auto Repair 2421 Larpenteur Avenue W
have presented to the City of Lauderdale complete applications for renewal of current tobacco
licenses; and
WHEREAS, the establishments listed above have provided the proper fee and the Certification
of Workers Compensation form and insurance certificate.
NOW, THEREFORE BE IT RESOLVED, that the Lauderdale City Council authorizes that the
establishments listed above, be granted tobacco licenses with the City of Lauderdale for the term
of January 1, 2024 through December 31, 2025.
Adopted by the City of Lauderdale this 28th day of January, 2025.
Mary Gaasch, Mayor
ATTEST:
Heather Butkowski, City Administrator
LAUDERDALE COUNCIL
ACTION FORM
Meeting Date January 28, 2025
Agenda Item 3.2 Off -Sale Malt Liquor License
Action Requested
Consent X❑ Public Hearing ❑ Discussion ❑
Action ❑ Resolution ❑X Work Session ❑
DESCRIPTION OF ISSUE AND PAST COUNCIL ACTION:
The City has received an application for renewal of a 3.2 off -sale malt liquor license. The license
would be valid January 1, 2025 December 31, 2025.
Larpenteur SuperUSA - 2424 Larpenteur Avenue West
STAFF RECOMMENDATION:
By approving the Consent Agenda, the Council adopts Resolution No. 012825B Approving the
3.2 Off -Sale Malt Liquor License for 2025.
RESOLUTION NO. 012825B
CITY OF LAUDERDALE
COUNTY OF RAMSEY
STATE OF MINNESOTA
APPROVING 3.2 OFF SALE MALT LIQUOR LICENSE FOR 2025
WHEREAS, the following applicant:
Larpenteur SuperUSA 2424 Larpenteur Avenue W
has presented to the City of Lauderdale their complete application for renewal of current 3.2 off
sale malt liquor license; and
WHEREAS, the establishment listed above has provided the proper fee and the Certification of
Workers Compensation form and insurance certificate.
NOW, THEREFORE BE IT RESOLVED, that the Lauderdale City Council authorizes that the
establishment listed above, be granted 3.2 off sale malt liquor license with the City of Lauderdale
for the term of January 1, 2025 through December 31, 2025.
Adopted by the City of Lauderdale this 28th day of January, 2025.
Mary Gaasch, Mayor
ATTEST:
Heather Butkowski, City Administrator
LAUDERDALE COUNCIL
ACTION FORM
Meeting Date January 28, 2025
Agenda Item Cannabis Report
Action Requested
Consent ❑ Public Hearing ❑ Discussion X❑
Action ❑ Resolution ❑ Work Session ❑
DESCRIPTION OF ISSUE AND PAST COUNCIL ACTION:
Point Seven Group completed their analysis and provided the following report. Jennifer
Haskamp from Swanson Haskamp Consulting will co -present the findings with the city
administrator.
STAFF RECOMMENDATION:
POI NT7
GROUP
Financial Model Summary Prepared for the City of Lauderdale
Date of Completion: 01/21/2025
ENGAGEMENT OVERVIEW
Point Seven LLC (Point7) was engaged by the City of Lauderdale (Client or City) on
September sth, 2024, to develop a 3-year pro forma illustrating the performance of a
single dispensary to be tentatively owned by the City. Over the past five months,
Point7 and Client worked collaboratively to develop the attached pro forma which
includes: revenue assumptions; startup expense assumptions; operational expense
assumptions; personnel assumptions; and a projected 3-year monthly income
statement, balance sheet, and statement of cash flows. This summary describes the
scenarios explored by Point7 and Client and projected performance for each
scenario.
Demographic and census information was provided to Point7 by Swanson Haskamp
Consulting, including population, 21+ population, median income, and population
density data for 1-mile, 3-mile, and 5-mile radii around 2430 Larpenteur Ave W,
Lauderdale, MN 55113, as well as figures for the City of Lauderdale.
THREE SCENARIO EXPLORATION
The City of Lauderdale explored three distinct scenarios to evaluate potential
dispensary performance. Point7 worked collaboratively with Client to model two
scenarios (Scenario 1 and Scenario 2). Point7 and Client agreed that Scenario 3 is not
possible to model because the financial outcomes depend heavily on subjective
and negotiable factors, such as the profit-sharing agreement terms and the
operational dynamics between the City and a private partner. These variables are
highly speculative and cannot be accurately quantified without clear partnership
details and agreement structures.
Point Seven LLC I Page 1
The scenarios are as follows:
Scenario s: City -Owned and Operated Dispensary
In scenario 1, the City owns and operates the dispensary directly. The City assumes
all responsibility, including staffing, inventory management, compliance, and
day-to-day operations. It is assumed that the dispensary, as a municipal entity, would
benefit from tax-exempt status, potentially reducing operating costs. All profits after
expenses would be retained by the City, allowing for reinvestment into community
programs and services. This model provides the City with maximum revenue
potential, but also requires the most involvement and operational risk.
Scenario 2: City -Owned Building Leased to a Private Operator
In scenario 2, the City constructs and renovates the building, completing basic
tenant improvements, and leases the property to a private cannabis operator. The
operator assumes responsibility for all staffing, inventory, and operational costs,
while the City collects premium rental income typical for cannabis retail spaces. This
model eliminates the City's involvement in operations and profit-sharing, focusing
instead on achieving a payback period for the investment in the building and
generating a stable, predictable revenue stream.
Scenario 3: Profit -Sharing Partnership
In scenario 3, the City constructs and owns the building, leasing it to an operations
group at a rate designed to recover tenant improvement costs within the lease term.
The private operator handles all staffing and management, charging a
management/operations fee to cover expenses. After deducting the lease rate and
management fees, remaining profits are shared between the City and the operator
based on a negotiated split (e.g., 50-50 or 70-30). This hybrid approach balances the
City's financial risk with the potential for higher returns through profit-sharing.
ASSUMPTIONS
Point7 relied on the following key assumptions to develop the financial pro forma
and analyze each scenario. These assumptions establish the framework for a
dispensary operating at the proposed location but vary based on the City's role. For
Scenario a., where the City owns and operates the dispensary, startup costs include
construction, licensing, staffing, and inventory, reflecting full operational
responsibility, In Scenario 2, where the City constructs the building and leases it to a
Point Seven LLC I Page 2
private operator, assumptions focus solely on building -related expenses, such as
construction and renovation, while operational costs are excluded, as they are borne
by the operator. This ensures each scenario reflects its unique financial and
operational dynamics.
Licensing & Regulatory Assumptions
• License Type: Lauderdale would apply for a cannabis retailer license (versus
a microbusiness or mezzobusiness license with a retail dispensary
endorsement).
• Lottery: Municipalities will not participate in the lottery process. However, they
must submit all required application materials.
• Timeline of Licensing: While an application window for the SEA applicants
and the general population is scheduled to occur between 2/18 and
3/14/2025, it is unclear at this time if municipalities will also have to submit
their application materials during that window.
Market Size Assumptions
• Population: Lauderdale's local population of 2,245, with a median age of 34.2,
aligns with cannabis consumer demographics, suggesting a younger and
price -conscious customer base,
• Location: The dispensary's location along Larpenteur Avenue ensures
accessibility to commuter traffic and proximity to the University of Minnesota,
significantly expanding the customer base,
• Addressable Market: A projected total addressable market of 8,816 adults
within a 1-mile radius and 1413,698 adults within a 3-mile radius, including an
additional 10% adjustment for tourism and cross -city traffic.
• Dispensaries Licensed: The exact number of potential dispensary licenses is
unknown. Prior to July 1, 2026, the OCM will only issue 150 retailer licenses
and 10o mezzobusiness licenses. A retailer is allowed up to five locations, and
each mezzobusiness is allowed three retail locations, leaving the state with a
potential of 1050 dispensaries with those two license types alone. Because
microbusiness is an uncapped license type that allows one dispensary, and
any municipality interested in opening a dispensary is allowed to do so, it's
impossible to estimate the true potential number of future licensed
dispensaries.
Market Share Assumptions
• Storefront Market Share: 50% of the addressable legal market within the
i-mile radius, resulting in an estimated 361 monthly storefront customers in
Year 1.
Point Seven LLC 1 Page 3
• Delivery Market Share:16,7% of the addressable legal market within the
3-mile radius, resulting in an estimated 1,920 monthly delivery customers in
Year 1.
Revenue Assumptions
• Average Monthly Customer Spend: S207,50, with customer archetypes
ranging from infrequent users ($50/month) to frequent users (S400/month).
• Total Monthly Revenue at Full Capacity (2025): S466,000, inclusive of a 15%
discount for qualified customers (1o% of the customer base).
• Annual Revenue Growth: 25% in 2026, 20% in 2027, 15% in 2028, and 10%
annually thereafter, driven by increased market penetration and consumer
awareness.
Expense Assumptions
• Startup Costs: S985,314, including $300,000 for construction, $178,000 for
dispensary fixtures and equipment, and a $89,574 contingency fund,
• Operational Expenses: 5128,553 monthly (51.6 million annually), with a 5%
annual increase,
• Personnel Costs: 41% of operational expenses, with 13 employees earning
$17,50-$21 per hour.
• Cost of Goods Sold (COGS): 45% for retail products, increasing to 55% for
delivery services due to third -party fees,
• Tax -Exempt Status: As a municipal entity, the dispensary's tax-exempt status
eliminates standard taxes on gross profits, providing an operational advantage
and allowing greater reinvestment into community initiatives,
KEY FINDINGS & SCENARIO ANALYSIS
Point7 evaluated the financial performance of a City -operated dispensary (Scenario
1) and leasing a City -constructed facility to a private operator (Scenario 2). Scenario
3, involving a profit-sharing partnership, was not analyzed due to its reliance on
subjective terms, but remains a viable future option for the City,
Scenario 1: Municipal -Owned and Operated Dispensary
• Revenue Potential: Generates $1.86M in Year 2, growing to $6,62M by Year 5,
Total net income by Year 5 is $2,78M,
• Startup Costs: S924K in Year 2, including construction and setup.
• Profitability: Breaks even in Year 3 with $1,41M in net income.
• Strengths: Maximized revenue potential, community reinvestment, and job
creation.
Point Seven LLC I Page 4
• Challenges: High operational complexity and financial risk, requiring strategic
management.
Scenario 2: City -Owned Facility Leased to a Private Operator
• Revenue Potential: Annual rent starts at $48K in Year 1, escalating 5% annually,
totaling $6o3K over a so -year lease.
• ROI: 75,6% ROI with a 7.16-year payback period.
• Strengths: Low financial risk and operational simplicity.
• Challenges: Limited revenue compared to direct operation.
Scenario 3: Profit -Sharing Partnership
• This scenario explores a collaborative agreement where the City owns the
building, and a private operator manages operations, with profits shared
between both parties,
• Strengths: Balances financial risk and reward between the City and operator.
o Provides a potential steady revenue stream without requiring City
operational oversight.
o Allows the City to retain property ownership while leveraging private
expertise.
• Limitations: Financial outcomes are highly dependent on subjective and
negotiable terms, such as the profit-sharing percentage and operational
responsibilities.
o Due to the speculative nature of these variables, this scenario was not
analyzed in depth.
Comparison
• Revenue: Scenario 1 provides higher profitability, with $2,78M by Year 5 versus
S6o3K over 10 years in Scenario 2.
• Risk: Scenario 2 offers Lower risk and complexity, while Scenario 1 requires
significant investment and management.
MODEL OVERVIEW & STRUCTURE
Client has been provided with an Excel copy of the pro forma described within this
summary. The Excel workbook is composed of the following tabs:
• ModeL Overview
• Market Analysis
• Revenue Inputs
• Expense Inputs
• Real Estate Inputs
Point Seven LLC I Page 5
• Delivery Inputs
• Personnel Inputs
• Annual Financial Statements
• Monthly Pro Forma
• Monthly Cash Flow
• Monthly Balance Sheet
• Real Estate - Own/Build/Lease
The Excel workbook is organized to provide a structured and user-friendly tool for
analyzing the dispensary's financial performance. Key aspects of the model's
functionality include:
• Input Tabs: Tabs like Revenue Inputs, Expense Inputs, Real Estate Inputs, and
Personnel Inputs centralize editable assumptions. Adjustments made here
automatically flow through the workbook.
• Market Analysis: Provides detailed demographic and market data to support
revenue assumptions.
• Financial Statements: Includes annual summaries (Annual Financial
Statements) and detailed monthly views (Monthly Pro Forma, Monthly Cash
Flow, and Monthly Balance Sheet) for granular insights.
• Real Estate Analysis: The Real Estate - Own/Build/Lease tab offers a
comparative analysis of property scenarios.
Formatting Conventions:
• Black Cells: Contain hard -coded values that should not be adjusted,
• Blue Cells: Represent optional toggles or values that can be overwritten,
• Toggle Cells: A value of 1 activates a specific scenario or option (e.g„ Partner
Delivery Service), while a 0 deactivates
Point Seven LLC I Page 6