This transcript features **Mayor Luke Hellier**, Councilmembers **John Bermel, Joshua Lee, Michelle Volk, and Dan Wolter**, and City Staff including City Administrator **Justin Miller** and Parks & Recreation Director **Joe Masiarchin**. [0:01] **Mayor Luke Hellier**: Okay, I'll call this June 26th work session to order. If you'll join me for a moment of silence and the Pledge of Allegiance. [0:25] **All**: I pledge allegiance to the flag of the United States of America, and to the Republic for which it stands, one nation under God, indivisible, with liberty and justice for all. [0:40] **Mayor Luke Hellier**: Thank you. Okay, moving on. Item number three, Citizens Comments. Okay, seeing none, all right, then we'll go down to item four, Lakeville Fire Relief Association update. I believe Chief Meyer is kicking it off, or you can let Dan Quam or Jesse Niergart for the relief board—thank you, welcome. [1:05] **Dan Quam**: Thank you. Thanks for letting us be here tonight. My name is Dan Quam, I’m president of the Lakeville Fire Relief board. My esteemed colleague to my left here is Jesse Niergart. Jesse's been serving as our secretary on the board for the past few years. Anyways, typically our appearance around this time of year in connection with this memo has a particular financial objective involved with it, and usually, it's around an increase to the benefit level that we're seeking for our firefighters. This year, the objective is a little different and really it is about information sharing, just to come back to you and let you know what the discussions were this year around the decision that ultimately we led—we came up with—which is not to increase the benefit level at all. Obviously, the financial performance of our fund is the main motivator in arriving at that decision. I think anybody that's looked at their 401k over the last 18 months has realized that the financial performance in these investments has not been great of late. But also, we want to maintain the partnership and the commitment that we've made with all of you in the city to trying to stay within the boundaries that we've set of that 115 percent funding level for the pension itself. As we outlined in the memo too that we circulated, this benefit that we offer our firefighters is, I would argue, the greatest tool that we have for recruiting and retention. And so, even though this decision was made not to ask for an increase to the level itself, we did take the opportunity to consult with some other firefighters relief boards that have gone through some of the transitions that we're experiencing here in Lakeville and get their thoughts and ideas around how can we continue to make this attractive even if we're not increasing the benefit level this year. Many of the ideas were around the vesting schedule itself. We presently—and I believe at least as long as I've been around it's been—20 years to be fully vested and then seven years to reach a point of partial vesting. Quite frankly, that's challenging to recruit with given, you know, some of the other parameters that we've set as the department around proximity to stations and who is able and willing to fill the role of a firefighter here in Lakeville. Some of the feedback we received was to trim the vesting schedule to five years for partial vesting and 10 years for full vesting. Some of the additional commentary around that really was the state legislature might mandate that very soon, so they were encouraging us to get out in front of it and make that decision ourselves. Outside of that, Jesse, was there anything I'm missing? [4:47] **Jesse Niergart**: No, I think last time we spoke, we talked and worked with Julie [Stahl] and Joshua [Lee] about a target of 115%. So we wanted to hold to that commitment that you made with us last year. And I think we're pretty close to that number just coincidentally almost, but I will say the membership challenged us on this approach. Some feel like we should always ask—why wouldn't we just ask? We're not saying that if you want to change our minds we would certainly accept, but I do think we're trying to really maintain a smart relationship as far as financially how the department works and how we incentivize our members. But it is changing as you all know; you're looking through a lot of different parameters with the Chief about full-time firefighters and all the expenses that come along with that. I would just ask you not to forget that there's still going to be more on-call firefighters than full-time firefighters, and the truth is I think they may be harder to retain in a combination department because they've kind of now become a second-tier firefighter in some ways. So how do we keep them engaged and keep them incentivized to do the job? [6:04] **Councilmember Dan Wolter**: What's the conversation like in the department about—do people give up at 13 or 14 years to get to the 20? Or I mean, what does it do to retention from just candidly, would you go from 20 to 10? [6:15] **Jesse Niergart**: Yeah, do you think a bunch of people leave at 10? I guess is my question. I think you would see more of it frankly, yes I think you would. But I believe the average tenure for a Lakeville firefighter is like six years. So on average, they're not realizing anything out of this benefit. So maybe you get them four more years and reach a point of full vesting. I think the lower number from seven to five is probably where a two or three-year member would be like, "I've got five more years to go, I'm going to move," or "I'm going to take this job," or they’re just going to quit. Where they're like, "Oh, if I hang out for two more years at least I've got some retirement to look forward to." From that perspective, seven years is a long time to wait for one dollar of pension benefits. So I think that's what we're hoping would happen. [7:34] **Dan Quam**: I agree, and I think the demographic has changed for your average volunteer firefighters. You don't see as many 25-year-olds that are able to buy a house within two miles of the fire station; it just economically isn't viable for a lot of them. You have somebody like myself that decided to join the department at the ripe age of 38. Knowing that I might reach a point of full vesting at 48, I guess it has a little more appeal to it than, "Oh, I'd have to ride this out until I'm close to 60" if I wanted to be fully vested in this. [8:12] **Councilmember John Bermel**: Is there a financial impact to go to—what does that mean to the pension to do that? [8:16] **Justin Miller (City Administrator)**: As Dan mentioned, at seven years they're eligible for the pension but at a much reduced rate and it increases each year. If you went to a lower rate or a lower vesting period, now they're eligible to receive that. So we do factor that into the projections that there is some liability associated with that. But with the recent calculations, it was certainly below that threshold of 115. [8:53] **Councilmember John Bermel**: And then the annual benefit wouldn't increase in year 11; it's just the same but you're getting the full? [8:59] **Dan Quam**: Correct, just like if you're 21, 22, 23 years. [9:06] **Mayor Luke Hellier**: Other questions, comments? [9:08] **Councilmember Michelle Volk**: I'd have to see more detailed financial impact and the suggestions to be able to look at it. [9:16] **Dan Quam**: Yep, we'd be happy to provide all of that information too. We have a good partner in the firm that we've worked with for at least the last few years and they've given us the tools to be able to manipulate the numbers for forecasting and we'd be happy to share that with Council. [9:45] **Councilmember Michelle Volk**: The other thing would be reaching out to the other hybrid cities that have done it... at least five years, so that there's some history there with determining what effect it has on volunteers—positive and negative effects. [10:07] **Dan Quam**: Sure, we'll make sure that we get that information to you. I would just add one more thing: this isn't an easy discussion internally either. You have plenty of 18-year members who say, "We did it, why should it be any different for anybody else?" So we started that dialogue about a month ago. I’d say we're perfectly at a 50/50 split between who likes it and who doesn't. [10:51] **Councilmember Joshua Lee**: Is there any conversation about just moving it down by like five years so it's 15 years? That is a big jump—10 years is a huge jump. [11:05] **Jesse Niergart**: I think that would be too. And I think when we looked at the models, it was that under 15 and 10-year partial vesting—or I'm sorry, 15-year full and five-year partial—that we were much more comfortable with. [11:29] **Councilmember Joshua Lee**: Well, you might even consider seven and 15 versus 10 and 20. [11:39] **Jesse Niergart**: Part of it is a little bit ceremonious in the sense that really we've kind of set the bar that if you're a career in this department, you've been on for 20 years. Which is a long time. It's probably better as we've learned more about mental health that maybe you shouldn't have people doing this job for 20 years. This would give people the ability to step away in 15 years and still feel like they were in a career. [12:12] **Councilmember John Bermel**: What's the percentage at the partial investment? [12:16] **Dan Quam**: It's four percent per year. So I think it's 40% at seven years and 44% at eight. [12:28] **Councilmember Dan Wolter**: Well, you didn't ask for any money. I mean, because in our meetings over the last six months, I was pushing for us to have an ask, partially because I think with a zero increase we've already lost the value that we set it at last year just with inflation. I was pushing for some sort of ask for a discussion point, but that does require a city contribution. I think part of my thought process behind that is that we should continue to build capacity for what this hybrid department looks like, and that's going to be more expensive than what we're investing in our paid-on-call fire department as well. I don't want the sticker shock of that hybrid department just to come out of the blue, which I know you and your team are working on. I don't know—personally, I think there should have been some sort of increase for this year, but I respect the "no ask" as well. [13:58] **Mayor Luke Hellier**: So next steps, just have a little bit more information and we'll discuss in July? [14:02] **Justin Miller**: No, there's no time frame on it. Next time they are here, we will have that evidence. [14:15] **Mayor Luke Hellier**: Okay, appreciate you guys. Thank you. Okay, we will move on to item number five for a legislative session recap. [15:33] **Jack Brooks (Legal Counsel)**: Mayor, Council, thank you very much for having me. I’m Jack Brooks from the City Attorney's office. We're talking about the Minnesota cannabis legalization. As you can see, I brought some slides. If you have any questions, feel free to step in at any time. 2023 is the year it finally happened, with a big asterisk that although the legislation was passed this year, not everything is actually happening this year. At a high level: 1) It legalizes private individual use/possession and limited growing. 2) There will be a commercial market regulated by a new state agency called the Office of Cannabis Management (OCM). 3) Expungement of convictions handled by a state board. Big important flashing lights notice: there have been no changes to federal law. It is still a schedule one drug. This is particularly relevant for city employees carrying firearms or who have a CDL (Commercial Driver's License) because the DOT still considers any THC in your system grounds for revoking a CDL. [18:28] **Mayor Luke Hellier**: I have a question about the OCM. Is it going to be run like the Met Council? I mean, are they going to have that much freedom to tweak and come up with rules and regulations that aren't necessarily in statute? [19:00] **Jack Brooks**: Certainly not the level of discretion of the Met Council. It's an office, so it's more like the Department of Education where they can come up with their own rules. They have pretty substantial rulemaking authority. They have an expedited rulemaking process, but it is still a notice and comment process open to the public. [20:17] **Councilmember Michelle Volk**: Is there an enforcement arm? [20:30] **Jack Brooks**: There is an enforcement and inspections wing. Some of that will be left to cities, like compliance checks where the police department sends in a minor to try and purchase something. Broadly, it permits adult (21 and up) use and possession. You can grow a limited amount: eight plants, four of which can be mature at any time. You can use it in private residences, but not generally in public places. This photo here [on slide] of someone smoking on a pipe in a city park would not be legal under the new law. [22:38] **Mayor Luke Hellier**: One thing that they mentioned at the League of Minnesota Cities last week was to establish a misdemeanor ordinance by August 1st, so that if there is a situation being used in the park, we have enforcement ability. [22:49] **Jack Brooks**: Yep, it can be a petty misdemeanor. Without City action, it is prohibited but without a penalty. [23:01] **Councilmember Michelle Volk**: Do we currently have an ordinance against tobacco smoke in the parks? [23:05] **Mayor Luke Hellier**: We don't. [23:07] **Councilmember Michelle Volk**: So those are two conversations we need to have. [23:14] **Mayor Luke Hellier**: I think we should have a conversation about prohibiting that and the petty misdemeanor. [24:58] **Councilmember Dan Wolter**: So if there are four people in a car, the other three can't be smoking? [25:01] **Jack Brooks**: Nope, and like with alcohol, you can't have open gummies or anything. If the police pull someone over and find a package of open gummies, there's no defense that the passenger says they are theirs; it's not allowed in the car. [25:48] **Councilmember Dan Wolter**: Does the statute contain the provision like the open container where not only the person who has it, but the driver can be charged? [25:54] **Jack Brooks**: That's my understanding. There are 16 new types of licenses. It’s the craziest thing I ever read. Cultivation, manufacturer, distribution, retail. A year ago we talked about "cannabinoid products," now we talk about "cannabis" versus "hemp." Hemp is the 3-2 beer equivalent. It's limited to five milligrams of THC per dose. Anything from a cannabis plant or anything with more than five milligrams per dose is "full strength." [31:02] **Councilmember Joshua Lee**: Does it allow for vertical integration? I mean, can somebody do all of the— [31:10] **Jack Brooks**: It specifically does not. It specifically bans that kind of vertical integration to avoid "Big Weed." One person can have maybe five licenses, but only one per city, and you can't have a retail license if you also have a cultivation license. [32:10] **Councilmember Joshua Lee**: So a traditional vape shop could not get a marijuana license? [32:15] **Jack Brooks**: Not one of the full-strength dispensary licenses. It would need to be a completely separate business. These licenses are issued by the state, not the city. The state will call the city to ask about zoning compliance. [33:40] **Mayor Luke Hellier**: Does the state do the enforcement too? [33:45] **Jack Brooks**: It's a bit of a split. The city will have enforcement power. If you find them not in compliance, the city can suspend their operations for up to 30 days. [37:18] **Councilmember Joshua Lee**: If a license is granted and there's a good reasonable objection, is there an appeal process? I mean, what if we only want one retail outlet and they are granting 10 licenses? [37:50] **Jack Brooks**: The city is allowed to limit the number of registrations it issues. You need both a state license and a local registration to sell. You have to have at least one per 12,500 residents. Lakeville could decide you want—I think it’s six or seven. [40:55] **Councilmember Michelle Volk**: Is there a yearly registration fee for the city? [41:15] **Jack Brooks**: For a full-strength license, it's $500 initial, $1,000 renewal. The city can charge up to half of the state license fee. [45:00] **Councilmember Dan Wolter**: How do they handle multi-tenant properties? Can you smoke pot in your apartment and bother your neighbor? [45:16] **Jack Brooks**: Same way you could smoke tobacco. It depends on the management company. [46:25] **Councilmember Dan Wolter**: If somebody wants to cultivate, do we need to be prepared to regulate that too? [46:48] **Jack Brooks**: Yes, mostly through zoning. It’s an agricultural business. [48:19] **Councilmember Michelle Volk**: My opinion is that we still live in America. People can do whatever they want; they can drink too much if they want to. I’m more of a "live your life" or libertarian when it comes to certain things. [49:50] **Councilmember John Bermel**: This is a whole different level than we are going to know until it starts to happen. It's going to affect people. Right now we don't have a city ordinance. For me, it's a balance between what you're saying, Michelle—we don't want to over-legislate everything—but we need to help our citizens. [51:15] **Jack Brooks**: The part that says it’s legal takes effect July 1st, and the part that removes criminal penalties takes effect August 1st. They missed that in there. So you could technically get arrested this month. Municipal regulation is pretty strongly preempted. The big one left is zoning. You can have setbacks from schools or parks. [53:40] **Mayor Luke Hellier**: Can we do it by geography? Like one here and one there, two miles apart? [54:05] **Jack Brooks**: That's a bit of a gray area. The statute says "reasonable restrictions on time, place, and manner." You can have setbacks of 1,000 feet from a school or 500 feet from a daycare. [1:00:15] **Mayor Luke Hellier**: So it’s not going to be like liquor where sales end at 1:00 AM? [1:00:20] **Jack Brooks**: They must be allowed to sell between 10:00 AM and 9:00 PM. They cannot sell between 2:00 AM and 8:00 AM. [1:05:35] **Jack Brooks**: The city can impose a civil penalty of up to $2,000 per violation. Shutting a business for 30 days is a pretty robust compliance tool. There is a 10% sales tax on all products. One percent of gross sales across the state will go to helping cities. It's expected to be self-supporting for compliance. [1:13:35] **Councilmember John Bermel**: Can we hire somebody that would do the nuisance checking versus sending a police officer? I'd hate to tie up their time with this. [1:13:53] **Jack Brooks**: Yeah, many cities have a code enforcement officer. [1:16:58] **Mayor Luke Hellier**: The way I see this wrapping up: we need to talk about tobacco in parks and a petty misdemeanor for public use. Long-term: zoning, hours, fees. Did I miss anything? [1:18:00] **Jack Brooks**: Zoning for use and the moratorium if desired. Personal cultivation can happen—eight plants—but it has to be locked and out of view. Probably a greenhouse or a cage. [1:27:50] **Mayor Luke Hellier**: I would like to have a conversation about putting some parameters on public use. I don't want it to be a situation where you go to some of these other cities and it's the Wild West and everywhere you go outside it stinks. [1:36:00] **Councilmember Dan Wolter**: I don't know if I will support the thing unless it's all combined... tobacco and cannabis. Secondhand smoke of anything is not healthy. From an enforcement standpoint, it’s helpful for consistency. [1:39:20] **Mayor Luke Hellier**: We'll bring that to the July 24th work session. Thank you, Jack. Okay, we want to quickly jump to the park stuff. [1:40:45] **Joe Masiarchin (Parks & Recreation Director)**: Thank you for your time. In November 2021, the voters approved a $40 million park bond referendum. Here are the nine projects. Basketball courts: we replaced six asphalt courts with concrete at Bassett, Foxboro, Highview, and others. Arts Center: we added a loading dock so bands can roll equipment right onto the stage. Critter Cabin: the exterior is being stained, but we are waiting on an electrical panel. Antlers Park: the parking lot is shaping up—we're adding over 100 more stalls. The Aussie multi-use pavilion is scheduled to be completed by January 1st, 2024. Trail gap connectivity: there are six major segments. We are doing four this year. For Park ID signs, we are replacing 39 signs this fall. Now, Avenuelea Community Park: we've moved the pickleball courts, added a future space for a skate park, and we're proposing a Cricket pitch between the athletic fields. There’s a pickup cricket game every Friday night in Village Creek if anyone wants to watch. We are also building a baseball field there—330 feet down the lines, 380 in center. LBA (Lakeville Baseball Association) is liking that. [1:55:50] **Councilmember Michelle Volk**: What's the potential for a town team, like the Miesville Mudhens? [1:56:45] **Joe Masiarchin**: That's the vision. To have high school section tournaments and a "small town feel" team right here in Lakeville. We also have a "challenge course" planned, similar to the one in Golden Valley, with a 40-yard dash. [2:04:45] **Justin Miller**: Shifting to the legislative session recap. Bonding bill: we received over $14 million. $7 million for the rail storage yard—discussions with Progressive Rail are challenging—and $7.1 million for the public training facility. Surprising and very happy to see that. We also have $3.1 million in public safety aid. It's one-time money. We’d be hesitant to use it for salaries because it’s one-time, but we can use it for capital costs like renovating fire stations for full-time staff. Juneteenth is now an official city holiday. Metro sales tax for affordable housing: we expect around $300,000 annually. [2:11:45] **Mayor Luke Hellier**: I had a conversation with Habitat for Humanity. They have programs where the city owns the land to help preserve single-family housing. We should have a discussion with them at a work session. [2:13:50] **Councilmember Michelle Volk**: I like the idea of a rehabilitation program for people on limited budgets who need their roofs replaced, so they can stay in their homes. [2:15:30] **Justin Miller**: Paid Medical Family Leave: starts January 2026. A 0.7% payroll tax. The impact to the city is about $140,000. [2:20:55] **Justin Miller**: One more thing: we now have to allow "native landscapes." We can't regulate the height. This is going to be a hassle because people will say their front yard is a native landscape to avoid mowing. We’ll have to figure out the ordinance changes for that. [2:29:40] **Councilmember John Bermel**: I have one item for future discussion: the neighbor's dog barking. Our ordinance was written in 1979. A constituent thinks it’s woefully outdated. Apple Valley’s ordinance sets out prescribed steps like warnings. I just bring it for consideration. [2:31:40] **Mayor Luke Hellier**: We can bring it back for a look. Anything else? [2:32:10] **Councilmember Joshua Lee**: I had a meeting at the airport. The fly-in breakfast is July 9th. [2:33:30] **Councilmember Dan Wolter**: I attended an ALF (Ambulance) meeting. They offered a ride-along if anyone is interested. [2:36:40] **Mayor Luke Hellier**: Pan-O-Prog parade. We need to figure out the float. I'd be more comfortable with a flat platform instead of a tiered one. [2:40:40] **Justin Miller**: Just a reminder: July 3rd meeting is canceled. July 17th will be lengthy. We’ll have the housing study and the financial quarterly report. [2:41:40] **Mayor Luke Hellier**: Take a motion to adjourn. All in favor. Adjourned.