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City council seeks negotiation to end pound contract stalemate

The future of a city pound contract with Souris Valley Animal Shelter will be on the table at a Minot City Council workshop Friday, Jan. 23.

The council hesitated at its meeting Tuesday, Jan. 20, to enter a proposed 3-year contract with SVAS due to a couple of sticking points. SVAS fulfilled a 1-year contract to provide pound service in 2025 and had submitted the only proposal to operate a pound service going forward.

Council member Rob Fuller raised concern about the inability to get specific financial data from SVAS. He proposed a month-to-month contract through June to allow the animal shelter to assemble the sought-after financials.

“We set the contract to go July 1 through June 30 the following year so it aligns with our budget process, because talking about this in January, when we don’t even know what our budget is going to look like later this year, I think, kind of hampers both the contract and our ability to really discern ‘Do we have the money to keep doing this, this way, or do we need to look at an alternative, like doing it ourselves?” Fuller said.

Zach Krukenberg, SVAS board president, said the organization opposes a monthly arrangement.

“We need some stability to our business, and we’re not going to operate on a month-to-month basis where this could disappear. We need the ability to plan our business as well,” he said. “We have to make sure we’re staffed appropriately, equipment is appropriate in the building. We are looking at making some capital expenditures and month-to-month does not give us that security.”

“I don’t think that it’s appropriate for us to make a decision on this contract without financial data,” Fuller responded, citing troubles the city encountered when working without adequate financial information from Project BEE on Broadway Circle and EPIC Companies on the Big M building.

“I’m not in any way suggesting that you guys are doing anything wrong, but I think our job as the council is to make sure that we are doing the right thing with the people’s money, and part of that is being able to see that you’re a viable company and you aren’t going to disappear on us in 8 months or after we’ve given you all that money,” Fuller added.

Haley Burchett, SVAS communications and development specialist, stated after the meeting that the organization has been transparent in recent years in releasing financial information, receiving a transparency award through GuideStar, which provides public information on nonprofits. However, she said current financial information has not been audited so making it public at this time would not be proper.

“We want to make sure we’re putting the most accurate information forward,” she said. “We have no problem being transparent about finances. We’ve been extremely transparent with finances.”

The council also raised concern about receiving ex-officio, or nonvoting, membership on the SVAS board after requesting board representation.

“It kind of gave me some heartburn, too, to see that we could come as a visitor but not have a vote,” council member Lisa Olson said. “Allowing a city representative to have a vote, to be a member of your board of directors, also would answer some of these financial questions because, I assume, on a monthly basis, you are having some financial updates with your board members.”

Krukenberg explained SVAS would lose its independent status by placing a city council representative on its board while a contract is in place between the two entities. Krukenberg and Burchett said SVAS’s definition of independence and stance on board membership is driven by requirements of national partners that provide grant funding.

The council felt some pressure to resolve the contract question soon.

Police Chief Michael Frye said his department has no apparent options if there is no contract with SVAS. Other rescue operations have not shown interest in providing pound services, and a previous veterinary clinic that served as pound no longer has an interest.

“We’re going to be up tonight, scrambling to try and figure out what’s going to happen with strays, because there’s nothing in the county as well,” Frye said.

Council member Mike Hayes questioned whether boarding kennels might be an option. He said SVAS costs are high compared to kennel companies for boarding and administration.

Krukenberg explained pound animals have more medical and handling needs that increase costs, and the pound has additional administrative functions due to reporting requirements of the city.

Capt. Justin Sundheim with the police department also noted many stray animals are dangerous, neglected or abandoned and need immediate veterinary care.

“Even if we find another space, we need to figure out what does that vet care look like,” he said. The department also indicated kennel boarding companies are unlikely to welcome strays.

The council considered putting out a new request for proposals for pound services that specifically asks for financial information. However, council member Mike Blessum suggested negotiation with SVAS within the current proposal as a better option. The council directed staff to begin negotiations for further discussion at Friday’s workshop.

“This is one of those situations where not everybody’s going to get what they want, but it’s probably going to be the best outcome,” council member Paul Pitner said. “We’ve got to find a path forward because what we’re looking out for is the community – and for the pets and the animals.”

Council discusses, tables alcohol ordinance

The Minot City Council tabled further discussion until March on a revised alcohol ordinance after approving an additional change Tuesday, Jan. 20.

Language related to supper club licenses was amended, although it could be reviewed again at a future meeting. The amendment restores a requirement that the license holder’s premise seat at least 150 patrons, although it didn’t bring back an exemption for businesses in the Renaissance Zone. Instead, the revision added an option to the seating requirement, stating the restaurant must have servers who take orders from patrons seated at tables or a counter and maintain a higher percentage of gross sales from food.

The council also directed staff to bring back language to limit or better define special event permits and to establish an alcohol steering committee.

Separately, the council met in special session to revoke the liquor license of M & S Concessions for The Tracks. M & S purchased the license in 2024 for $100,005 and paid license fees through 2024 after getting extensions from the city to hold the license while development of The Tracks continued. The project never resulted in the premise M & S had intended to use, and M & S had been looking to sell the license to another entity. No additional extension had been requested, and the council chose to revoke the license.

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