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<br /> <br /> <br />City Council Minutes <br />October 6, 2025 <br />--------- <br />Page 6 of 7 <br />▪ Will the loading dock affect the residential area that is located adjacent? Mr. Tempas noted <br />there is dense forest separating the areas. <br />▪ Felt the conference/tasting room is not needed because this is not a private business. The room <br />is designed to be a tasting and educational space for both liquor and cannabis events. <br />▪ Why would there be a private patio? Utilized for tastings/educational events and staff breaks <br />similar to City Hall and Public Works facilities. <br />▪ Does this location meet our ordinance requirements for distance from a school? Staff will <br />research this further to maintain compliance. <br /> <br /> 11.4 2025 Elk RiverFest Recap and Plans for 2026 <br /> The staff report was presented. Mr.Shelby stated planning for 2026 is underway. He asked the Council if <br />the evening part of the event should be kept and if staff should continue to try to build it into something <br />more that can grow or if they should focus more on a daytime event. He also asked about having liquor <br />at the event. <br /> <br />The Council concurred on a family-focused daytime event with liquor sales. <br /> <br /> 11.5 Wastewater and Stormwater Rate Analysis <br /> The staff report was presented. Mr. Femrite introduced President Mark Derany with AMKO Bond <br />Services, who discussed the adequacy of the revenue the city is collecting to cover wastewater and <br />stormwater infrastructure costs. <br /> <br />Mr. Derany reviewed his reports and explained his methodology as outlined in the staff report. He <br />focused on three categories for wastewater: basic growth, debt service coverage, and the capital <br />improvement plan. He stated the city had been projecting about a 3% growth annually, but it does not <br />include the debt service coverage or future projects. He commented that the city has a really well run <br />utility from a financial standpoint. He recommended a 5% increase to rates, including connection fees, <br />to be implemented annually from 2026 through 2030 to cover inflation of operating expenses, and to <br />cover the capital improvement plan project expenditures. He also reviewed his stormwater analysis and <br />recommended a 3% increase in the stormwater fee. <br /> <br />Mr. Femrite summarized the recommendation of a 5% rate for the sanitary system and a 5% rate on our <br />connection fees, and 3% rate for storm sewer which is in line with projections from five years ago. He <br />discussed how the city participates in an annual rate survey where our rates are compared against other <br />cities and Elk River is the lowest. He noted our systems are different, but have good value for the <br />residents. He noted the Council will have the opportunity to review and adopt fees later this year when <br />the fee schedule is updated. <br /> <br /> 11.6 Northeast Sewer and Water Extension Sub Area Study <br /> The staff report was presented. Mr. Femrite introduced Ursinio Puga, with AE2S. <br /> <br />Mr. Puga provided an overview of the study in the staff report. He discussed the lift stations and <br />recommended upsizing the smallest pump in the River Park lift station from 388 gallons per minute <br />(gpm) to 610 gpm. He discussed the trunk sewer and recommended adding two small lift stations and <br />an 8-inch gravity pipe. He discussed the water system and noted no additional upgrades were needed. <br />Page 8 of 322