In the minutes: Olivia Minutes - August 17, 2026, Flock Camera (Aug 17)

REGULAR MEETING MINUTES
Monday, August 17, 2026
CALL TO ORDER AND DETERMINATION OF A QUORUM
The Regular Meeting was called to order by Mayor Hawkinson at 5:30 P.M.
Council Present: Matt Baumgartner, George Ebbers, Blanca Ferguson, Mayor Jon Hawkinson, Todd W. Howard.

Others Present: Elizabeth Torkelson, City Administrator; Pamela Whitmore, City Attorney; Jason Krumheuer,
Police Chief; Jasmine Miller, City Clerk; Betsy Hennen, Resident; Susie Lang, EDA Director; Janine Frieling,
House of Hope Director; Becky Jaenisch, House of Hope; Wendell Veurink, House of Hope; Katianne Briese,
resident; David Torgelson, House of Hope; Ross Okins, Renville County Register (zoom); iPhone (zoom),
BigFanOfAccountability (zoom).

PUBLIC FORUM
At 5:31 P.M., Mayor Hawkinson recessed the Regular Meeting and opened the Public Forum.

Betsy Hennen addressed the Council regarding tree selection for the Viking Drive shelter belt on behalf of several
residents. Hennen expressed a preference for a variety of tree species rather than a single species and raised
concerns regarding disease susceptibility, effects on nearby fruit trees, spacing, and mature tree size. Hennen
provided staff with a list of suggested tree species. Torkelson thanked Hennen and her husband for participating in
the June 22 community tree planting event associated with the City's tree planting grant. Staff, Public Works
Superintendent Craig, and Stacy's Nursery are working to finalize tree species and seek resident input.

There being no further public comments, the Regular Meeting was reopened at 5:35 P.M.
AGENDA

Motion by Baumgartner, second by Ferguson, to approve the agenda with the addition of Flock Cameras as
Discussion Item E. Motion carried.

Motion by Ferguson, second by Ebbers, to approve the adjusted agenda. Motion carried.
CONSENT AGENDA
Motion by Ebbers, second by Howard, to approve the Consent Agenda. Motion carried.

A. Regular Meeting Minutes — August 3, 2026

B. Work Session Minutes — August 3, 2026

C. Resolution 2026-80, Setting a Public Hearing to Consider Vacation of Certain Open Space Easements
D. Resolution 2026-81, Setting a Public Hearing to Consider a Conditional Use Permit

E. MRES - Olivia Distribution System Operations and Maintenance Agreement

DISCUSSION ITEMS

Public Hearing to Consider Use of Program Income Funds for Downtown Streetscape Improvement Project

At 5:38 P.M., Mayor Hawkinson temporarily recessed the Regular Meeting and opened the Public Hearing.
Councilmember Ferguson recused herself from the discussion due to a potential business interest.

EDA Director Susie Lang presented information regarding approximately $350,000 in restricted program income
funds originating from the former DEED Small Cities Development Program. The funds have remained largely
unused due to program restrictions. The EDA has been working with DEED to identify an eligible use for the funds,
and DEED indicated that a downtown streetscape improvement project would be an eligible use. The proposed
project would address deteriorated downtown sidewalks and public infrastructure by removing and replacing
decorative pavers and related sidewalk areas in approximately eight downtown blocks. The project is intended to
meet the national objective of eliminating slum and blight and would improve sidewalk safety, accessibility, and

walkability. An environmental review will be required prior to the project. SEH is assisting with the environmental
review, which is estimated at approximately $15,000. The available program income funds are anticipated to cover
the environmental review and project costs. The final project cost is not yet known. If funds remain available, the
application may include other eligible downtown improvements, such as benches, lighting, speakers, or signage.
The project is anticipated to begin in spring 2027. The City and EDA will communicate with downtown businesses
and property owners as the project progresses. Staff explained that the funds are subject to significant federal and
state restrictions and cannot be used for many traditional EDA purposes or direct business assistance. The funds
originated through the Small Cities Development Program, were converted to program income, and have remained
unused since approximately 2014 while the City and EDA worked with DEED to identify an eligible use.

There being no public comments, the Public Hearing was closed and the Regular Meeting reopened at 5:45 P.M.
Parcel 35-00004-00 Discussion / House of Hope

Torkelson provided an update regarding the City-owned parcel currently leased to House of Hope and potential
options for subdivision and/or sale of the property. Staff identified several issues related to subdivision, including
the existing garage being approximately five feet from the side property line where the agricultural zoning district
requires a ten-foot setback, which would result in a nonconforming parcel. Staff also noted that the area commonly
referred to as 26th Street is privately owned and is not an officially dedicated right-of-way, creating access
considerations. Airport clear-zone requirements must also be considered. Torkelson explained that the property was
originally acquired through a 90% State and 10% City funding arrangement. If the property is sold, the proceeds
would be subject to the same funding arrangement, with 10% allocated to the City and 90% to the State. The
Council discussed options including continuing the existing lease, selling the entire approximately seven-acre
parcel, subdividing the property, or selling the buildings and relocating them. The Council also discussed the
importance of maintaining appropriate airport access and easements and the possibility of relocating the garage.
House of Hope representatives discussed issues with windows allowing snow into the building and a storm door
that requires repair. House of Hope requested the ability to make minor repairs to the property. Staff explained that
the current lease places responsibility for doors and windows with the City and noted concerns regarding ongoing
maintenance of the storm door. The City Attorney recommended that the property be inspected for code and safety
issues and that applicable landlord-tenant requirements be reviewed before any changes to maintenance
responsibilities are made.

Motion by Howard, second by Ferguson, to continue the lease with House of Hope for an additional 12 months.
Motion carried.

Application for Exemption from Olivia's Garbage Program

Torkelson presented an application for an exemption from the City's garbage program for a vacant residential
property that is listed for sale. The property is owned by an estate and is currently unoccupied. The City Attorney
explained that the City's ordinance, consistent with state law, provides for an exemption when an environmentally
sound alternative method of garbage disposal is being used. Vacancy alone does not technically meet the exemption
requirements. The Council discussed whether a vacant property could be treated differently while unoccupied and
the potential precedent that could be established for vacant rental properties, seasonal properties, and other similar
situations. The Council also discussed the possibility of using utility changes to identify when properties become
occupied and the need for documentation if an alternative disposal method is claimed.

Motion by Baumgartner, second by Howard, to deny the application for an exemption from the City's garbage
program. Motion carried.

Alley Improvement Project

Torkelson reported that two quotes received for the alley improvement project were higher than the original
estimate and that the project cost, including engineering, would exceed $100,000. Staff recommended declining the
current quotes and postponing the project until 2027, when the City is expected to receive its next annual
installment of Transportation Advancement Account Small Cities Assistance Program funds. Staff indicated that
rebidding the project in spring 2027 may result in more competitive pricing. The Council discussed whether EDA
program income funds could be used for the project. Staff indicated that the funds likely could not be used for the

alley project and would confirm eligibility requirements. The Council also discussed a significant, approximately
eight-inch sunken area between the post office and print shop that may present a safety concern. Public Works will
inspect the area and determine whether a temporary repair is needed before winter.

Council consensus was to pause the project, address any immediate safety concerns, and revisit the project in spring
2027.

Flock Cameras

Councilmember Baumgartner raised concerns regarding the use of Flock cameras, including privacy, data retention,
potential vehicle identification errors, and government surveillance. Torkelson explained that the City does not own
or operate Flock cameras. The camera located within Olivia's municipal boundaries is operated by the Renville
County Sheriff's Office on MnDOT right-of-way with MnDOT permission and is being used as part of a trial
period. The Council discussed the City's limited authority over the camera and the possibility of providing feedback
to the agency responsible for its operation. Sheriff Hable has indicated a willingness to discuss the system with the
Council. The City Attorney explained that the legal treatment of Flock camera data varies depending on how
systems are operated and that restrictions may apply to the collection, retention, and sharing of the data. The City
Attorney recommended hearing directly from the Sheriff's Office before considering any formal action. Mayor
Hawkinson indicated that Councilmembers could advocate individually regarding the issue and suggested that the
Council hear from Sheriff Hable.

No formal action was taken.

Police Department

Torkelson provided an update regarding Police Chief Krumheuer's voluntary request to step down from the Chief
position and return to full-time patrol officer effective January 1, 2027. Chief Krumheuer submitted his written
request on July 9, 2026, and has requested to remain Chief through December 31, 2026, to assist with an orderly
transition and recruitment of a new Chief. Torkelson reviewed the requested terms of the transition, including
waiver of a probationary period, assignment to a primary squad, outside employment consistent with City policy,
and a request for retroactive on-call compensation for January | through June 30, 2026. Torkelson explained that a
probationary period would not be necessary for the internal transition and that the requested squad assignment and
outside employment would be addressed consistent with department operations and City policy. The Council
discussed Chief Krumheuer's request for retroactive on-call compensation. Torkelson noted that exempt employees
are expected to work the hours necessary to fulfill their responsibilities and that the Personnel Committee
previously recommended an on-call stipend effective July 6, 2026, in response to staffing shortages and additional
coverage needs. The Council did not approve retroactive compensation for January through June 2026. Chief
Krumheuer discussed the demands of the Chief position and his desire to remain with the Police Department as a
patrol officer. The Council also discussed the duties and expectations that should be clearly defined as part of the
recruitment of a new Chief.

Motion by Ferguson, second by Baumgartner, to adopt Resolution 2026-82, accepting Chief Jason Krumheuer's
voluntary request to step down as Police Chief and reassigning him to a full-time patrol officer position effective
January 1, 2027, with Chief Krumheuer remaining Police Chief through December 31, 2026. Motion carried.

City Administrator Torkelson presented proposals from SCSC and DDA for executive search services for the Police
Chief position. Torkelson recommended SCSC based on its lower cost, estimated 12-14 week search timeline, and
prior experience.

Motion by Ferguson, second by Baumgartner, to accept the SCSC proposal for executive search services. Motion
carried.

REPORTS

Torkelson reported on energy audits conducted through the MMDC Climate Action Plan Grant and Energy Audit
Grant. Audits were completed for the Community Center, Liquor Store, and Library. The reports are included in the
Council packet and will be used to help guide future building improvements and energy-efficiency projects.
CenterPoint has also contacted the City regarding potential energy-saving improvements at the Community Center.

Baumgartner reported that the Beck's ribbon-cutting event was well attended and included food, ice cream, and
activities. Baumgartner noted that the event was part of Beck's annual technology event and expressed appreciation
to Beck's for hosting the community.

Baumgartner discussed observations of iron chlorosis and declining tree health in the community. Baumgartner
explained that high soil pH can limit iron availability to trees and noted symptoms such as yellowing leaves with
green veins and reduced growth. Baumgartner shared information regarding treatments he has used and encouraged
residents to monitor tree health and consult appropriate resources regarding treatment options.

No additional reports were presented.

NOTICES AND COMMUNICATION

Budget Work Session — September 3, 2026.

No additional notices or communications were reported.
CLOSED SESSION

Motion by Howard, second by Ferguson, to close the meeting pursuant to Minn. Stat. § 13D.05, subd. 3(a), to
evaluate the performance of City Administrator Elizabeth Torkelson. Motion carried.

Motion by Ferguson, second by Baumgartner, to reopen the Regular Meeting. Motion carried.

Mayor Hawkinson reported that the Council reviewed City Administrator Elizabeth Torkelson's performance over
the past year, including the 360-degree performance review, and determined that she is meeting or exceeding
expectations.

ADJOURNMENT
Motion by Howard, second by Ferguson, to adjourn the meeting at 7:55 P.M. Motion carried.
Approved by the City Council of the City of Olivia this 8th day of September 2026.

Fa /

Jon HawKkingon, Mayor

Attest: Chen Miller, City Clerk