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author: SAllison

date: D:20260408074305-05'00'

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## MINUTES

## OF THE EDINA CITY COUNCIL

## WORK SESSION

## COMMUNITY ROOM, CITY HALL

## TUESDAY, MARCH 17, 2026

## 5:30 P.M.

## 1.0 CALL TO ORDER

Mayor Hovland called the meeting to order at 5:30 p.m.

## 2.0 ROLL CALL

Answering roll call were Members Agnew, Pierce, and Mayor Hovland. Members Jackson and

Risser were absent.

Staff in attendance: Scott Neal, City Manager; Chad Millner, Public Works Director/City Engineer;

Ross Bintner, Engineering Services Manager; Nathan Kaderlik, Public Works Assistant Director-

Utilities; Josh Wagner, Utilities; Perry Vetter, Parks & Recreation Director; Michael McBride,

## General Manager-Liquor Operations; Kersten McManamon, Marketing Manager; Jennifer

Bennerotte, Communications Director; Jake Miller, I.T. Specialist; and Sharon Allison, City Clerk.

## 3.0 MEETING TOPICS

## 3.1 STATE OF THE UTILITIES

City Manager Neal introduced the State of the Utilities presentation as an educational overview

of utility operations beyond typical budget discussions. Public Works Director/City Engineer

Chad Millner introduced staff, and Engineering Services Manager Ross Bintner explained the

presentation would focus on service levels, revenue trends, and capital investment timing.

Bintner outlined the customer-focused approach to utilities, including service benefits,

community engagement, and alignment with the City’s mission and values. He described system

structure and emphasized utilities as foundational to modern life. He reviewed key trends

impacting operations, including rising inflation and construction costs, increased regulatory

requirements, flooding impacts, aging infrastructure, climate-related pressures, and declining

winter water usage due to efficiency improvements.

Bintner discussed strategies focused on improved data collection, monitoring customer usage,

and balancing long-term operational risks. Utility rates were updated in 2022; however, revenue

has declined since the pandemic due to usage variability influenced by weather patterns. Bintner

noted that most sanitary sewer revenue is passed through to the MetCouncil and highlighted

efforts to reduce inflow and infiltration.

In response to Council questions, staff indicated they are not currently forecasting the

replacement funding gap but are focused on revenue trends. Millner stated that capital priorities

focus on lift stations, with remaining funds allocated as needed. Bintner identified areas

requiring upgrades to meet modern standards, including increased pipe capacity for fire flow,

noting that Lincoln/Londonderry, a known under-capacity area, were not included in the

presentation.

Bintner emphasized that higher rate increases do not necessarily result in higher revenue and

highlighted upcoming capital cost pressures. Discussion included the challenge of timing

infrastructure replacement with redevelopment and other opportunities and rising project

costs. City Manager Neal noted that infrastructure needs are often not visible until failures

occur.

Council discussed the value of modeling different rate scenarios and clearly communicating

tradeoffs to residents. Bintner expressed a preference for proactive, planned investments over

reactive emergency repairs.

## 3.2. EDINA LIQUOR OPERATIONS UPDATE

City Manager Neal introduced the liquor operations update, noting it would provide a summary

of recent performance. Parks and Recreation Director Perry Vetter introduced staff and

acknowledged Finance’s support.

Liquor Operations General Manager Michael McBride reviewed operational impacts over the

past year, particularly construction-related disruptions. He said the Grandview store

experienced significant sales declines due to access limitations and a temporary closure, though

sales have begun to recover. Additional construction impacts are anticipated in2026. Similar

effects were noted at the Southdale location, while the 50th & France store saw increased sales

following nearby project completion.

McBride reported that overall sales trends are improving in 2026 compared to 2025, though

broader industry trends show declining alcohol consumption and changing customer

preferences, including increased demand for mid-tier products and non-alcoholic beverages.

While final 2025 audit results are pending, staff expect a net profit.

McBride described staffing challenges following the pandemic, and efforts to improve retention

through increased wages, benefits, and restructuring, which were later scaled back due to

changing market conditions and cost pressures. Staffing costs were reduced by approximately

$1 million.

McBride outlined ongoing revenue strategies, including transitioning to third-party delivery

services, adjusting inventory to align with consumer trends, monitoring potential impacts of

THC regulations, increasing community event participation, rebuilding customer base following

construction disruptions, and implementing a loyalty program. Vetter noted the importance of

community engagement in demonstrating how liquor revenues support City services.

Council discussion highlighted shifting consumer trends and feedback regarding product

assortment. Council suggested further discussion at the task force level. Council also inquired

about potential impacts of the proposed social district on the 50th & France location; staff

indicated analysis is ongoing, though the proposal is not expected to advance in 2026.

## 4. ADJOURNMENT

Mayor Hovland adjourned the meeting at 6:48 p.m.

Respectfully submitted,

## James B. Hovland, Mayor

Minutes approved by Edina City Council, April 7, 2026. Audio copy of the work session available.