The Blue Earth City Council invited Blue Earth Wine & Spirits manager Dave Olson to a meeting held on Monday, March 4.

The purpose of Olson’s visit was to provide the council with an update about the municipal liquor store’s finances, which the council has been concerned about.

“Our profits have been down a little bit,” Olson reported. “One of the reasons is customers – we’re not seeing the customers we used to, so that limits our sales and limits the profits we’re getting.”

In a month-by-month sales report, the liquor store reported a loss of $3,999 in January, which was comparable to the $3,492 loss reported in January of 2023.

Although the liquor store reported a loss of $42,374 for the month of December, 2022, that was after a year-end transfer of $100,000 from the account. Last December, the store made a $78,881 profit.

Olson clarified that when he evaluates the liquor store’s financials, he compares them to the year 2019.

“That’s basically the last normal year,” he said. “You can’t really compare COVID years.”

Although COVID itself is no longer having a significant impact on sales, Olson explained that the economy is discouraging customers from making superfluous purchases, such as wine, beer and liquor.

“With the price of food and the price of gas, (customers) are making choices on what they’re spending their money on,” Olson observed.

He added the liquor store has been trying to attract customers with a more diverse inventory – a wider variety of beers and wines offered, for example.

Council member John Huisman wondered if the liquor store should look at cutting operational costs, given that profits are down.

“If revenue has flattened out, maybe it’s time to take a look at our expenses. I would like to see you take a look at staffing,” he suggested.

Apart from Olson, the liquor store currently employs two full-time employees and five part-time employees.

Olson said he does not feel cutting staff is feasible, however.

Huisman requested that Olson and city staff compile a report about the liquor store’s staffing to confirm that all eight employees are needed. He also asked the staff to study the liquor store’s Sunday sales to determine if it is necessary for the store to be open seven days a week.

The council also reviewed Olson and liquor store employee Amber Belaski’s request to attend the Minnesota Municipal Beverage Association Annual Conference on April 20-23.

The request had been tabled at a previous council meeting when the council questioned if it is necessary for two employees to attend the conference.

Olson explained he had invited Belaski attend for educational purposes.

“My main purpose is to get my staff trained,” he said. “I want to make sure in case something happens, they are able to take over, and they can run (the liquor store) without me being there.”

However, Huisman moved to approve just one person to attend the conference. The motion passed, with council member Jacque Drew voting in opposition.

The council also reviewed Bolton & Menk’s response to the Minnesota Pollution Control Agency (MPCA)’s new proposed limits on the discharge of total phosphorus, total chloride and total sulfate.

The response suggests the city’s existing water treatment facility is already equipped to meet the MCPA’s proposed limits on phosphorus, although additional operating efforts and chemical usage may be necessary to fully meet the limits.

According to Bolton & Menk, the city will also be able to meet the proposed limits on chloride following Blue Earth Light & Water’s planned addition of a new reverse osmosis (RO) softening expansion to the water treatment facility.

However, Bolton & Menk reported that meeting the proposed sulfate limits will be a challenge.

“Blue Earth naturally has a large amount of sulfate in its water, so this is a tough one to meet,” city engineer Ben Rosol explained. “Our engineer recommends at this point to do a compliance schedule to review all options available to attempt to meet the sulfate limit.”

The proposed compliance schedule outlines a series of investigations and progress updates up until 2032, at which time the city could start developing plans and specifications for a project to bring the city into compliance regarding its total sulfate emissions.

In other business, the Blue Earth City Council:

• Received an update from Rosol about the 2024 Street Improvement Project.

“We’re working on finalizing plans,” he said. “We will start advertising for bids next Monday. We are looking to open bids on April 1, right before the council meeting.”

• Received an update from city administrator Mary Kennedy regarding a city-owned Bobcat Toolcat that ignited on Wednesday morning, Feb. 28.

“Everybody is okay,” Kennedy reported, “The Toolcat will be okay.”

However, she added that the machinery will require extensive repairs.

• Approved an ordinance to amend a section of the City Code regulating kennels.

“This ordinance amendment regulates kennels rather than prohibiting kennels,” Kennedy explained.

• Scheduled a second reading for an ordinance to amend a subsection of the City Code concerning the licensing of solicitors, peddlers and transient merchants.

“The purpose of this ordinance is to change the language so it no longer requires that applicants provide proof of receiving licenses required by statutes by the county,” city attorney David Frundt explained. “The language is designed to still recognize licenses required by state law.”

• Heard an update about a property on Ninth and Galbraith Streets which is in violation of City Code.

Frundt said the city will proceed with scheduling a hearing to receive an order to address the violations.

• Reviewed the Convention and Visitors Bureau’s financial report for January through December of 2023, and approved the bureau’s proposed budget for 2024.

• Approved the city’s 2024 mosquito control contract with Mosquito Control of Iowa Inc. The services will cost $17,535.

• Approved Chris Ankeny’s application to defer the sanitary sewer and water main portion of his street project assessment, in the amount of $5,780, as his lot is undeveloped.

•Approved Merle and Victoria Hardy’s application to defer their assessment in the amount of $22,897.26, as they are 65 years of age or older.

• Received the 2023 year-end report for the city at a 4:30 p.m. work session.

• Approved Blue Earth police officer Joshua Crofton’s request to attend the third annual School Safety Summit.

• Approved food truck permits for Kristine’s Tacos and the P-Pod.

• Approved the 2024 liquor, tobacco and garbage/recycling licenses with the city, which are valid starting April 15 of this year until April 15 of 2025.