This transcript appears to be from a Moose Lake City Council meeting on December 9, 2015. Based on the names of officials provided and the context of the dialogue, I have added the speaker names to the transcript. *** **[0:01] Mayor Jim Michalski:** I'll be picking you up at work I'd like to welcome everyone tonight uh for uh December 9th 2015. this is a truth and Taxation meeting and after we close this at 6 30 we will start the regular Moose Lake City council meeting um the first item because this is a fisherman's a Pledge of Allegiance please **[0:33] Collective:** 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 the liberty and justice for all **[0:33] Mayor Jim Michalski:** I'd like to welcome our guests here tonight um maybe the first item is to review um these items here which is our Revenue **[1:13] Mayor Jim Michalski:** okay see that this is to Carlton County auditor so maybe I should start earlier in the year the way the budget is set the city has to in September I believe it is do uh vote in and amount the maximum amount that you can or that we would tax for the following year and the council set that at 10 percent and that is always a number that is set early in the year and very seldom capture as as you go through the budget process that number changes and there's discussion for a couple months worth of Council on different items **[2:00] Mayor Jim Michalski:** concerning the budget and the tax in general for the city and then it's set later in December right now and so we heard this uh truth and Taxation meeting first and uh we'll have to do another official motion during the regular city council meeting setting the tax and the budget right now um through the direction of the city council genius put together some figures for us this is where the five percent increase the revenue gender Revenue payable 2015 315 165 with a five percent increase the pay **[2:48] Mayor Jim Michalski:** bill 2016 is 338 223. as you can see uh a five percent increase across the city that's all businesses and uh let's say residents within the city brings in only 23 000 to the city so our our tax base is so small that that's what a five percent increase will give the city um just another to go on for the library the table 2015 is 106 660 April 2016 **[3:34] Mayor Jim Michalski:** 106 660 that did not change the debt 2006 Geo certificate of endeadness now we have payable 2015 is zero we have no idea what 2016. **[3:53] Mayor Jim Michalski:** there will be any okay the other Revenue debt to 2011 a Geo Capital proven bonds payable 2015 39 333 payable 2016 39 333 this is a total payable in 2015 was 461 158 payable in 2016 484 216. **[4:25] Mayor Jim Michalski:** County records show a debt Levy of 185 225 needed for 2016. 76 106.62 cents for the 995 000 Geo Capital Improvement Bond plan bonds series 2011a and 109 117.53 for the 2014 Geo Improvement bond series 2014 a so that is the information right now on a five percent tax increase any other information you'd like to give up **[5:14] Mayor Jim Michalski:** right we've had a zero increase in tax for two years that's what the council has voted in I think it was 2014 and 2015 we're both zero with that we will open it up for public comment then we have our first guest if you could please come up the podium and state your name **[5:45] Thomas Buyer (Guest):** Thomas buyer and um we own property up on Falls Boulevard 810 and 822. we had a question about our new proposed tax I noticed that the values and classification haven't changed on the lots that we own on the west side which is adjoining the other lots of ours it's ten thousand five hundred dollars for 2015 and for 2016 is ten thousand five hundred dollars same amount but the taxes went up from ninety dollars a year to two hundred and four dollars a year that's a hundred and twenty six point seven percent increase now some of that could be the school **[6:32] Mayor Jim Michalski:** Bond Square bond is right here from 1325 13.25 to 28.49 why did the taxes go up over now remember the the set the tentative the the count to use the 10 percent if we're going to vote a lower amount which is proposed that it would be down five percent instead of a ten percent it'd be five percent but the taxes did go up a little bit on our other properties between what was it one between one and three percent one and three percent but that over uh 127 percent unless that's a typo **[7:27] Mayor Jim Michalski:** which that's probably figured out of ten percent so that might be including some **[7:44] Thomas Buyer (Guest):** assuming that's fire district are you in the hospital **[7:54] Mayor Jim Michalski:** yeah portion 30 some dollars **[8:07] Mayor Jim Michalski:** at 10 percent so at five percent it would be thirty some dollars **[8:19] Mayor Jim Michalski:** okay well we can't uh in other words you're saying that this this is a normal increase then portion um that's the only thing we have control of and that's what we will set tonight and right now it's recommended at five percent the other ones the school district and the hospital and the fire we have no control over and the county right the city part is more than doubled yeah like third that's gone up 30 percent no that's gone up a hundred and twenty five percent from 2644 to 6310 all right that's way more than 10 percent and we're not even gonna we're not even **[9:05] Mayor Jim Michalski:** recommended ten percent um you could talk definitely talk to the county on that yeah on what well what happened we missed the county meeting that was yesterday yesterday well that's okay you can still ask them why that is the way I've never seen this yeah unless they put the decimal in the wrong place because our other ones were between one and three percent well it just right Gene even at 10 it wouldn't be without any way up to something I'm straight to the decimal points in the wrong spots yeah it goes from 90 to 204 dollars yeah but then so we should contact you should **[9:51] Mayor Jim Michalski:** go to the county then because see even the city went way up they all went up 126 right each of them okay now you can talk even though they had their meeting that doesn't mean you can't come and have them explain everything to you and if there is a mistake um they'll catch it at that time that that's absolutely do that right well see there's been no change in valuation right evaluation is exactly the same right yeah because even even the city part is is way off right I would go there and tell them though that we're only raising ours five percent so why did it go up because we hadn't we have done nothing different as a city right I think something's wrong with it even if they use the ten percent **[10:37] Mayor Jim Michalski:** even the 10 percentage which is a a temporary setting until we vote tonight and set it at at the proposed five percent is what we're proposing because I think something's wrong there thank you yeah thank you very much thank you for your time yes very good thank you David **[11:15] David Thomas (Guest):** I represent Lakeshore Manor 24 unit building 900 Lakeshore Drive and I have properties across the street five acres that I've tried to sell and haven't been able to but we'll continue to try and then I have a strip of land behind the garages I think we total about 1800 square or 1800 running feet on both sides of 289 on 73 and of course the issue problems are is to get an access off from 73 probably impossible but maybe not yeah I was at the hearing here for the Highway 73 I didn't know it was for the for the commercial route **[12:01] David Thomas (Guest):** Mr Mayor you mentioned about a small tax base I live in Cloquet but I've been down here most of my life we put this building in here Duffy wenberg were the partners that were the prime movers and of course they had their problems so they sold out and but in 76 we built this building it is paid now very close to a half a million dollars in taxes and you talk about tax base I made a very big mistake when I sold land through the developers that put up The Meadows not knowing they were seeking tax increment funding which does not help the tax base **[12:48] David Thomas (Guest):** and that's one thing I'd like to ask this Council to consider don't do this anymore for projects that don't produce jobs that's what tax increment funding was set up for and of course you've got one of the nice and nicest employers I just met two of my Cloquet friends up at the new quick trip I don't think they asked you for anything in our project asks you for nothing we put in the water and the sewer from uh what's the doctor's name again man monson's corner I call it up uh to our entrance and that sewer and water were instrumental in of course The **[13:33] David Thomas (Guest):** Meadows development and hopefully some other stuff in the future and you know I to me tax increment funding gives back to the developer 80 to 90 percent of the taxes they pay the taxes and it kind of filters around with the county and and and it comes back to them it's like a gift and I don't know I'm a developer and I don't want a gift I want help to put things in order and in fact when another mistake I made with the metals is I should have had a site plan in my hand and had a final say in it because has anybody noticed where that building is cited below grade **[14:20] David Thomas (Guest):** we have a problem with snow we have to keep our snow away from them and that type of thing or we'd flood them out in the spring and I don't think whoever cited that building from Saint Cloud ever was on the site so that's that's the problem but getting back to the the expenses uh two years ago we were at eight hundred thousand dollars evaluation then they jacked it up or three years ago or at eight hundred thousand two years ago they brought it up to 880. 10 increase and then at the same time we got these special levees we went from a little over fifteen thousand to now over twenty one thousand dollars in property taxes it's almost a thousand dollars a unit and they are not big **[15:06] David Thomas (Guest):** units there it's a plain Jane building that's what you can build because that's what people can afford I have right now four people gonna have two more on the Housing Authority program this is something new for us it is and and we talked about this today uh but this is what it's coming down to is people don't have money to pay rent and do other things so they look to the government for help and and they get it I I'm pleased to work with housing authority the Section 8 existing uh manager from Cloquet is a good friend of mine Bob Nelson I have many units in Cloquet on this program whoever said our economy is in good shape is lying through their teeth **[15:53] David Thomas (Guest):** it's not true you go to Cloquet we have sold fewer jobs than we did 10 years ago 15 years ago Etc so I think it behooves all of us to make sure we don't waste the tax dollars I know expenses to be paid out of these rents or property taxes Insurance utilities which are water sewer uh refuse hauling thank God we don't pay the heat only to heat the common areas the tenant pays their own energy and that's how most of these buildings should be but they aren't they're centrally heated and there's so much waste with a centrally heated building I've had them in Cloquet so I do have a question about Mercy Hospital **[16:38] David Thomas (Guest):** nobody had to vote on that and there's what we have here under special as far as the city's responsibility we don't have any responsibility as far as them sitting there who do they deal through mayor they have the award they have a board but somebody's got to give them permission to Olivia tax on us they well they do have tax tax Authority once they set up that hospital board I'm not like any community that has a hospital board um they're set up through the state has to go through the county and the state and the community does anybody ever say no to the people to go to those meetings to express their opinion those are posted okay **[17:23] Mayor Jim Michalski:** um and and we as a council individually can go and tell them uh that we don't want our tax to go up that'd be up to each council member to do it but as a city we don't that's not our responsibility it's up to individuals throughout the whole district and it just isn't Moose Lake it's all it goes up to through Barnum um east west south you know the whole District townships and cities we have a similar situation in Cloquet where we have this Consolidated fire and ambulance service Etc which is like Topsy it's grown and grown and grown and it's a very expensive thing every vehicle you see is you know 100 200 **[18:10] David Thomas (Guest):** thousand dollars and uh they just Levy and and again they don't have to ask for voter approval and it's I think it's a travesty because we're supposed to run this they don't understand it these it's the tenants that pay these expenses but of course if we have vacancies or people don't pay their rent it comes out of the landlord's pocket and I have some partners they're they're very fortunate because we got rid of our mortgage a long time ago if we had a mortgage today we'd be in trouble we would not be viable I think the city has done our job for two years at zero percent increase they've told the line it's a school **[18:56] Mayor Jim Michalski:** district and the special assessment and you know what they're shooting us and probably everyone too is the health increases ours went up eight percent on health four percent on Dental four percent on glasses revision um that hurts it hits you right well I'm self-employed and I've been self-employed pretty much all my life uh 43 years in the apartment business and I pay my own my wife pays her own she has a business in Cloquet as well and to me when when Minnesota polishes are going to have a 14 and a half percent rate increase and by the way the legislators voted last year that they don't have to have a public hearing **[19:43] David Thomas (Guest):** isn't that amazing they're going to take our money and give it to somebody else the heavy Industries which in northern Minnesota are for the most part failing and it's not because of the cost of energy no so yeah we know what's going on we watched that closely it does affect all in northern Minnesota well I hope we don't have any more tax tax increment funded projects especially in the apartment and because we can't compete with them I can't compete with the medals and uh fortunately uh you know we are debt free if we weren't we couldn't get we definitely couldn't do that I thank you for your time we appreciate your input that's what this is about at all **[20:30] David Thomas (Guest):** these meetings and I'm going to be at the I've said at the city council meeting Cloquet last week that I bet the counselors were happy there weren't school board members and I got quite a laugh out of that because they have got 134 percent increase in my School levees over last year I mean it's horrendous that's that is a lot that's huge yeah we don't have a building project do they oh yeah they're going to build a new middle school it's a middle school tearing down the old high school which had two additions on it and was converted to a middle school next to my Homestead which which I still own bought from my mother years ago **[21:15] David Thomas (Guest):** and uh it was added on to it should have never been added on to they made a mistake the Two school boards no parking we've got the Queen of Peace we've got the Presbyterian Church we had the Old Zion Lutheran Church and then the high school all in this concentrated area was fine when everybody walked to school and all the teachers lived right around it but that changed yeah yeah so now they're going to build a new one and a new school and that's if that helps education I'd like to know how well thank you thank you for coming **[21:58] Mayor Jim Michalski:** we have about uh another six minutes of time with the truth and Taxation and we'll we'll close and start at the regular meeting **[22:18] Mayor Jim Michalski:** any other guests they're going to speak on Truth taxation **[22:29] Mayor Jim Michalski:** shut off until 6 30. all right we will stop broadcasting now until 6 30 we'll turn on at that time thank you recommendation on the budget and the five percent which um we would need that motion I'll make the motion to recommend that we set the levy at five percent and the budget is presented and the budget that's presented because this stuff's not in there right yes it's in there but it's like miscellaneous or what well those items you tentatively accepted those and set **[23:16] Mayor Jim Michalski:** those you can change them during the year and we didn't accept all these though we'll discuss that during the city council meeting okay so it'll just be the budget minus those items Capital requests right you have a second second any other questions discussion all in favor say aye aye aye opposed same aye very good thank you motion carried do you have a motion to close the truth and Taxation meeting I'll make that motion do I have a second second all in favor say aye aye opposed motion **[24:04] Mayor Jim Michalski:** carried um Steve I think we're already transmitting I see you on we're good we're just ready to start the regular council meeting Mr Peterson will wait till you get your stuff set up I'm ready **[24:33] Mayor Jim Michalski:** all right we will open the regular city council meeting we've already done the Pledge of Allegiance during the truth and Taxation so the first item will be the agenda any additions and or corrections to the agenda and I do have one addition to make under 4C we have a and the addition will be B which is uh art project for the library **[25:14] Council Member Walter Lower III:** anyone else have any additions or changes yes sir I do Mr Mayor uh November 10th The Joint Moose Lake City or Moose Lake School and city council meeting uh under areas of concern by the city council I believe there's a couple more areas I'd like added that we did discuss which is Public Safety rezoning and best use of property Public Safety Ruiz and the best use of property in the minutes so it's nothing that we have to add to the agenda no I just wanted that put in there because it was uh presented that way I have those three down jeans so **[26:01] Mayor Jim Michalski:** I couldn't remember okay any other changes or Corrections additions going on home in favor or do I have a motion to accept the agenda excuse me so move do I have a second I'll second it any other questions discussion all in favor say aye aye the poll is saying motion trade and we do have some guests tonight so after the consent agenda if the council is right we will have our guests come up and conduct their business and then they can leave if they so choose to or can stay for the rest of the city council meeting **[26:46] Mayor Jim Michalski:** and with that said uh we'll move on to number two a the minutes and uh number one November 10th 2015 joint Moose Lake School and city council meeting with additions that have been requested number two is the November 12 2015 regular Moose Lake City council meeting number three is November 30th special Moose Lake City council meeting number four is December 5th 2015 special city council meeting number five is November 3rd 2015 special Water and Light meeting number six is November 12 2015 special Water and Light meeting number seven is November 23rd 2015 regular Water and Light meeting **[27:34] Mayor Jim Michalski:** do we have any other questions or discussions on the minutes **[27:46] Mayor Jim Michalski:** none do you have a motion to accept in the consent agenda of the minutes some will I'll second it all in favor say aye aye opposed motion carried under 2B Financial reports you have the city accounts payable December 2015. number two the city financial statements November 2015. **[28:10] Council Member Kris Huso:** number three liquor store and profit loss statements for November 2015. any discussions and or questions I yeah I have a question on page 30. okay uh check zero three nine nine nine five to Central Minnesota housing for an admin fee **[28:39] Mayor Jim Michalski:** okay **[28:47] Council Member Kris Huso:** I have one question also on page 31 um four zero zero four nine to Image Design for 590 dollars for polycarbonate panel for hockey **[29:09] Mayor Jim Michalski:** right oh so this is signage we've taken over I think all the signs we get all the revenue now from there that's fine I I was thinking it was a panel for actually the hockey arena yeah any other questions on the financial reports **[29:35] Mayor Jim Michalski:** I remember we have motion to accept in the consent agenda the financial reports I'll make the motion you have a second a second any further questions discussion all in favor say aye aye opposed same motion carried this take a second here to get the rest of these in **[30:14] Mayor Jim Michalski:** moving on to number three uh public comment this time is reserved for comments from the public on matters not listed on the agenda please keep comments to three minutes can you guess and we will be calling you up on the next item this would just be just things not on the not on the agenda oh okay okay and I know for the art project we'll be here on the agenda too so I'm I'm here so we have no public confidence at this time and we will move to uh um our guests tonight so they can both conduct their business **[31:01] Mayor Jim Michalski:** and we move on um under new business 6A Gene and this set up an artist group in Moose Lake **[31:17] June Doty (Guest):** so thank you mayor Shah and members of the council for hearing me my name is June Doty and I've lived in the Moose Lake area for about two and a half years after I retired from the UMD music department we rented in the area for 14 months and liked it so much we bought a house right in town close to the hospital so very pleased to be here and I also want you to know that I'm your Arrowhead Regional Arts Council representative and that's in the capacity that I speak to you tonight first of all unlike the topic of taxes I would like to congratulate you on from the outside what seems to be a very strong feeling of optimism in the new **[32:05] June Doty (Guest):** slave Community both with the hospital expansion and the school as pillars but also all of the building on the 73 Corridor and the downtown area also what you may not be aware of is that along with the very obvious building there has also been a Resurgence and a growth in the artist's community and while the Blacklock gallery and the Larson clay Works has brought National and international prominence to Moose Lake there are nonetheless hundreds of artists doing artistic projects every day and we might ask well okay so what **[32:50] June Doty (Guest):** does this have to do if us is the city council what does this have to do with this meeting tonight there's been a lot of discussion lately about the importance of arts and the impact of Arts in one's life and if you're an artist yourself you probably agree with the idea that Art For Art's Sake the fact that art gives you something in your life that nothing else can is the most important part that experience but there's been a lot of research lately that points to some other pretty startling facts about art activity I'd just like to make a couple of quick quotes on a recent study that came out regarding Arts education and the effect **[33:37] June Doty (Guest):** on young adults and students a couple of the things for instance each additional year of art study was significantly associated with a 20 reduction in the likelihood that an adolescent would ever be suspended out of school former Arts students are 55 more likely to have attended any post-secondary school by adulthood than with former non-art students and former students of music and theater were significantly more optimistic as adults I don't know about you but I don't hear Too Much optimism these days so I would say that that probably is the most **[34:22] June Doty (Guest):** important well so it affects lives in a positive way that we can believe it also has significant economic impact and I'm going to leave you with this sheet but the regional Arts Council Arrowhead Regional Arts Council serves Region 3 in the state which includes the colonies of Aiken Carlton cook Itasca Kuching Lake and St Louis maybe Blown Away by the fact that the total economic impact in this study which was just put out by creative Minnesota there's 39 million seven hundred and forty thousand dollars of economic impact in that Region Three area with **[35:09] June Doty (Guest):** the equivalent of 1063 full-time equivalent jobs supported by non-profits and art activity art has a real economic impact but I'm here today because of something we Arrowhead Regional Arts Council director said and that was of all the Seven Counties Carlton County has the least amount of activity in the Arts community and this Lake in particular was cited for being lower than many of the other areas and it really does not make sense to me we have a very strategic location **[35:55] June Doty (Guest):** on the I-35 Corridor people going between the Twin Cities and the Duluth North Shore area or the Twin Cities in the Iron Range every day we have many many artists in our area who are struggling to sell things out of their home to create things out of their home and distribute them we need a permanent place where they can display their pieces that's the bottom line and it's just something I'd like to leave you with people would drive on 73 on their way to the Iron Range and they wouldn't just drive through Moose Lake they would stop and visit and in Impact our economy **[36:42] June Doty (Guest):** with their activity so I'd like you to think about that possibility the town of bacon has the jayquees Arts Center Grand Rapids has mccrosty there are all kinds of activities moving and going on in these other communities and I'd like to really urge you to think about the possibility from this lake so that discussion can be continued later because I'm sure I'm over my three minutes but in conclusion I'd like to invite you to the inaugural event of the newly rejuvenated artistic Community here we're going with the name the Magi Watershed artists for the moment **[37:27] June Doty (Guest):** but our first event is going to be held on December 19th on Saturday and I'm going to give you some cards to pass out it's a sale that the depot is helping us to host and there will be about 20 artists selling their Wares of all different genres stained glass photography painting textiles and if you're like me you may want to use that as a perfect opportunity to both start and finish your holiday shopping but I want you to think about this event which we are calling winter solstice as being something far more important and **[38:13] June Doty (Guest):** more impactful than just a holiday sale I want you to think about it as an event to support our artists and also as an opportunity to think about supporting an increased artist presence and Economic Opportunity for Moose Lake so I will leave you with the sheets that I from which I quoted as well as some of the cards that give information about the holiday sale please distribute from among yourselves pass them out we look forward to seeing you on the 19th and thank you so much for your time could you mention the times again on the 19th yes it started **[38:59] Mayor Jim Michalski:** room on Saturday the 19th free admission free coffee and cider and beautiful beautiful art pieces to look at and purchase thank you thank you are there any questions by the council by the way before you step away I'm just wonderful thank you appreciate it thank you so much I think that's in the packet isn't it oh it was each one got one okay I think we pass some down to that's a catching name you guys have too thank you **[39:59] Steve Olson (Historical Society):** moving on to uh in the new business 6B Steve Olsen this is a historical sliding kitchen project request do we have a page number for any information just for the record yesterday the board of directors of the Historical Society voted to rename the community group that is now the sea lion Event Center in the photos of 1918 Museum there's been confusion in the past between this community room and that community room and now hopefully whether it never does any get rid of that I put together a handout which I think you hopefully I'll have Urban who is works for the USDA as a **[40:46] Steve Olson (Historical Society):** commercial kitchen inspector for the statement for the USDA and state of Minnesota put us on to these Horizon kitchen people we did solicit bids from three different companies they're the only one that responded they've did all the engineering for us as a kitchen man submitted it to the state of Minnesota Health Department for approval it's about a four to five months submitter process every time you change anything so it's been going for a while we have a chance to get a hundred thousand dollars forgivable Grant from USDA for work to complete the kitchen up there in that building and we need to match that hundred thousand fifty percent we have 25 000 so we're kind of asking the city to put up the other 25 000 so we can get **[41:32] Steve Olson (Historical Society):** the kitchen done up there it's uh it's a fundraiser for the city that brings people into town of a municipal liquor store takes care of all the liquor sales up there and Mark told us that they do real well at events when they're up there and you just think it's a good project and you have the opportunity to get it done now and I know twenty five thousand dollars a lot of money but it's you get you get to own every equipment with the city that's in your building in fact gone through anything they may have questions of me what is your your timeline well you've been given the you still has uh they're open when we get the application done they will process it right away **[42:19] Steve Olson (Historical Society):** Connie Christensen from Carlton County Economic Development is helping us with Grant project with a guy named totally from Baxter Minnesota it was a USDA guy so I'm hoping to get started right after the first of the year uh cousins has did some work up there first already and he kind of like a winter job inside we kind like to get it done and she's looking for a commitment now so you can finish the application when it goes in whether it be a screening process and just go through uh you know I I don't know a lot about that Connie is very confident after talking to this Tyler Ray guy that if we submit the application and we got it right that list you know give us the money the **[43:06] Steve Olson (Historical Society):** requirements that they asked for was a medium income under 35 34 000 population less than eight thousand dollars and then the 50 matching and uh I think a lot of places they seem to have some money at this yeah she works for the Connie's uh BDA director USD airports that's that's the agricultural department and in the kitchen plane there's a small copy in the packet that's already been approved by the State Department of Health for construction so we're ready so thank you for your time well thank you um Council we have a discussion on our budget what item is that our budget **[43:52] Mayor Jim Michalski:** um **[44:01] Council Member Kris Huso:** Mr Mayor okay why don't we add it to this sheet huh why don't we add it to this but I'm looking for where that is in our agenda okay okay so Gene had put it in under the truth and Taxation stuff so you will have to **[44:33] Mayor Jim Michalski:** stay with uh we got the investment we've got **[44:44] Mayor Jim Michalski:** yeah you know I think we need a separate item we've already approved agenda hmm **[44:57] Mayor Jim Michalski:** to consider that we have to discuss it with this this one sheet 16. **[45:09] Mayor Jim Michalski:** well do you want a motion to add this item to sheet 16. well we're going to have to we're going to have to amend the the motion we made earlier I guess by making another motion and adding this to the agenda we'll have no other choice there isn't anything that it would really go under it would have to be under the business hrj you're talking this Capital request right this uh you'd have to wonder this uh 2016 Capital requests **[45:52] Mayor Jim Michalski:** you have that motion I'll make that motion I have a second second all in favor say aye aye opposed motion carried under 16 we have Nick with Edwards and Associates and discussion on dead limits and other Financial discussions thank you you know and part of that um a little bit discussion on this 2015 local Road Improvement funding project which is 700 and 50 000. **[46:35] Nick Anselmo (Guest - Ehlers/Edwards):** which is matching it's a matching proposal thank you man Nick and HUD with elders and Associates and I actually do have some handouts here for the council and we have anything else in here June Paige there is one in here thank you okay thank you hello let's arrive all my notes thanks Nick and the information a package starts on page 99 and I think that goes through a hundred and uh 104. **[47:23] Nick Anselmo (Guest - Ehlers/Edwards):** thank you again uh the information that I just placed before you is actually an update from the what is included in your packets um interest rates change on a daily basis and so part of the discussion we wanted to have is is really a discussion about debt capacity um as as the mayor had mentioned there is a potential project on the table for three quarters of a million dollars in matching funds for a potential uh Street and I believe Street and utility project if I understand correctly yeah yes and and so there's been some discussion about well you know how do we quantify the ability um to incur more debt how should we frame whether or not to move forward with this project so some of the **[48:10] Nick Anselmo (Guest - Ehlers/Edwards):** information I put together was just some background on on the city's current existing debt portfolio if you will what is on the books what are your fixed payments uh out into the future and so this first page of the handout uh what this does is it's a snapshot of the entire portfolio and I have three different categories or three different buckets if you will of of different types of debt that are supported from different revenue streams on the left hand side of the page you'll notice at the top it says Geo Water and Sewer Revenue these are General obligation bonds or loans placed with either the public market as is the case with a 2013 refinancing that the city executed or it's placed with **[48:56] Nick Anselmo (Guest - Ehlers/Edwards):** the state public facilities Authority which is essentially a bond bank if you will the state actually administers loans to municipalities for various projects and the majority of these are either clean water projects or related to the sewer system which obviously earlier this fall we all went through so that is the amount outstanding that's being paid from sewer and water revenues derived from your utility system as you can see opponents are out for you know essentially a 20-year period most of the structure is actually very well aligned you see that payments for the next several years are all **[49:42] Nick Anselmo (Guest - Ehlers/Edwards):** fairly level right in just under a half a million dollars a year that the utilities are paying uh paying off that debt as we get into the future about nine years from now in 2024 they start to to tail off some of those older loans are paid off and so you start actually having some capacity if you will if we wanted to keep our payments stream level into the future you start achieving some capacity starting in 2024. this is not to say that you can't incur more debt on top of that it was not really an analysis of that this is really just looking at what we have right now if you want to keep that level into the future here's the capacity that you can generate **[50:28] Nick Anselmo (Guest - Ehlers/Edwards):** so the second column is the amount of principle outstanding you see how that is getting paid down over time the amortization is another way another term for that and then the third is is you know the difference or what's being freed up as as that debt service is reduced into the future the top there's another column called npv it's Net Present Value so if you were to frame that capacity that's freed up over that 20-year period and a sign is basically what you would expect to pay an interest on on a potential obligation right now I put in there 3.8 percent I think that's a fairly Fair rate for where a 20-year Bond would place for Moose Lake right now **[51:13] Nick Anselmo (Guest - Ehlers/Edwards):** you see that that capacity if we were to structure debt so that you did not incur any payments until 2024 and then those payments were 50 000 starting at that point and then they ramp up as you pay off more debt essentially that equates to a capacity of 900 945 000 today or 946 000 so if the thing we lose Reserve I usually it would go down if we did borrow more and spend more that's what it kind of tells us correct well this this would actually just say that you could if you wanted to capitalize that what's freed up in the future when when that starts coming off the books if you wanted to capitalize that today it'd be just under a million dollars that would provide you in proceeds for a project **[51:59] Nick Anselmo (Guest - Ehlers/Edwards):** right now the trade-off in that is that you would then be level out for 20 years on all of your debt essentially and so anything that you would want any other Capital project in that entire period would have to layer on top and so you would essentially be increasing your burden at that point this is really a model that shows you you're not increasing the burden we're just extending the amount of time that we're right right so you were able you would be able to capitalize that and stream for about a million dollar project today it would not be a very efficient debt vehicle you wouldn't start paying debt off until almost 10 years from now yeah so you'd be paying quite a bit of Interest in the interim period but essentially **[52:46] Nick Anselmo (Guest - Ehlers/Edwards):** that's really what this is telling you the second set of columns bracketed in there is actually a different it's a it's a general obligation bonds but their General obligation bonds that are supported primarily from tax levy okay not not from utility revenues um there are some as in the I believe the Park Park Place project in 2014 has assessments that are coming in as well and so I've gone ahead and updated those the 2011 bonds which are the other set of bonds that are supported from the tax levy we're refinancings of two different facility bonds that were issued back in the late 90s I believe for this facility itself and the Safety Center **[53:33] Nick Anselmo (Guest - Ehlers/Edwards):** so there are some lease payments that are coming in for utilization of those that offsets some of the levy burden so I've gone ahead and captured that in this snapshot as well and you can see as you move sort of to the middle column there your payments or Levy payments this debt is right at about just under 150 000 um it actually increases a little bit from 16 to 17 but it goes up to about 150 000 and it also is level pretty much all the way out until 10 years from now 2025. **[54:13] Nick Anselmo (Guest - Ehlers/Edwards):** going through the same exercise all right if we didn't want to you know essentially increase the levy in the short term what kind of capacity could we generate again 20-year Horizon you see all the you know the capacity is really on the back end starting in 2026 all the way out to 2035 what that equates to equates to a you know present capitalization of just over eight hundred thousand dollars the last on the right is is the electric utility that this is debt that's paid only from Electric revenues much shorter term of the existing debt there's um you know the level of it is is actually ramping down **[54:58] Nick Anselmo (Guest - Ehlers/Edwards):** starting next year at 386 000 so there's actually a lot of capacity if if you wanted to extend that as far as capitalizing on the reduction in debt service that that fund or those funds are going to pay off here in the short term all right I don't believe there's anything on the table um at least that I'm aware of as far as capital projects for that for that fund again it would only be able to support essentially uh electric utility improvements and things of that nature your question is the north substation project will that be paid for in the short term by 2025 **[55:44] Nick Anselmo (Guest - Ehlers/Edwards):** and here 10 years would be 2025. I think it was 10 but I'm not sure so that's why that's why we were looking at 2025 that's when their 2026 right that's when everything's exciting okay yeah we do have some okay loans are going to be up in the next year or so right so I give us a good snapshot yeah so that's the entire portfolio as it stands today it's all fixed rate debt so it's not a variable rate it doesn't reset or anything like that so this all this payments streams are are locked in for the time being the PFA lines which are the majority of **[56:30] Nick Anselmo (Guest - Ehlers/Edwards):** the water and sewer debt again those are State administered loans they do have um a little more astringent of a prepayment requirement in them so if you did have Surplus money that you wanted to go ahead and start paying off your dad earlier than is shown here has to be some Communication in advance with the public facilities Authority they have to essentially give a sign off because they have some pretty strict standards on there and they need to keep revolving a lot of these funds back and forth so they need some predictability on what I'll call their revenue coming in which is you paying off of your loans so that they can go **[57:16] Nick Anselmo (Guest - Ehlers/Edwards):** ahead and offer loans to other communities at the same time and keep the money moving in and out however as long as you do forecast that to them give them some time to react usually they're quite open to it most of these interest rates are extremely low so there's very little opportunity that I would I would predict you'd have to refinance any of those and for for a lower rate if you wanted to just save some interest costs really really Avenue to reducing this burden is is the prepayment Avenue that I had just mentioned so just something to monitor not really anything that you need to take care of right now but as far as the levy supported debt um those Bonds were issued in 2011 and 2014 **[58:04] Nick Anselmo (Guest - Ehlers/Edwards):** so they're fairly fairly new still the 2011 has a as a call feature uh to where that you could really think about refinancing that starting within about 2020 I think um you could do an advanced refunding before then if if you know it looked like it was economically viable for you but most of these are actually locked out from prepayment um up until that period of time same thing applies though same kind of calculus if you will of of whether or not you'd want to think about paying down the amount of debt or refinancing they're pretty low interest rates we've been operating under that for quite a while now um who's to say if it's going to continue **[58:50] Nick Anselmo (Guest - Ehlers/Edwards):** into the future expectations that our rates might may go up but I think people like me have been saying that in front of public bodies like yourself for many years and they stay low so um yeah it's good to have low interest rates you do have them right now but I just wanted you to be aware of ability to refinance some of this or restructure it if you will as well on the second page to get into just a little bit more detail about what a bond issue would cost just to clarify this so if we go let's see what the sewer and water and we refinance or restructure that we **[59:36] Mayor Jim Michalski:** we could get what was it a million you said possibly out of that uh not not restructuring if you were just to incur more debt so if you wanted to issue debt right now and you only you didn't want to increase your payments right at all but you used the whole 20 years the capacity that's freed up starting in 2024 would be able to support a essentially a one million dollar bond issue okay um and then again this the second column maximum would be eight hundred thousand right so that's almost like a well you'd still be incurring 20 years of repayment on that but it's almost like I Do no harm with no reduced in terms of your annual **[1:00:24] Nick Anselmo (Guest - Ehlers/Edwards):** payment structure if you will um now the second page is the opposite all right if we just instead of wrapping we call that wrapping a structure if we wrap the structure of the debt around existing debt and look at some of those capacities that are freed up over time we call that a wrap around this on the second page is actually if you just went ahead with a like I'll say a normal bond issue with level payments what it would look like right now and so I just ran some numbers for a 10-year bond issue and then you repay the bonds over 10 years or a 15-year just to give **[1:01:09] Nick Anselmo (Guest - Ehlers/Edwards):** you sort of a sample of you know what your annual payments would be and so principle the applicable rate for those principal payments out of interest that you would pay in each year and then the total p i is just adding the two principal and interest that would be your total payments or essentially what would be supported from the revenue stream that's identified I I would assume that would be Levy unless there's some assessments associated with the project or if there's a utility portion you could you know apply some utility funds to offset that Levy burden um but you'll notice this is financing for a 750 000 project when you add up **[1:01:54] Nick Anselmo (Guest - Ehlers/Edwards):** all the principal payments it actually comes to 790 000 that's because I'm including the finance the financing costs in there essentially close to forty thousand dollars so you'd have a 790 000 bond that would give you your matching funds for the uh you know 750 000 in matching funds as well as paying the the cost of issuance and then the repayment of that is is really looking at about 88 89 000 per year at the 10-year repayment if you went with a 15-year repayment it's just under sixty four thousand dollars so um what's in your packet is actually it shows a little bit higher the rates have actually come down a little bit um in the month or so since uh we last discussed this with the mayor **[1:02:42] Nick Anselmo (Guest - Ehlers/Edwards):** um so that's just a snapshot of what that would look like and and really you could do it's really up to you on how you want to structure your debt you could go with a hybrid of the two you know in between looking at maybe ramping up payment over time as as some of that capacity is freed up or if you wanted to incur the burden of it right now you could go with this level structure and just start making those payments paying down principal the problem with with doing the wrap structure is you're extending your obligations out into the future and so you're you're kind of hamstring yourself in the future when you when you use a shorter vehicle like a 10 10 year level Debt Service you're **[1:03:27] Nick Anselmo (Guest - Ehlers/Edwards):** actually paying down that principle and then you're creating you know more capacity essentially in the future if you wanted to issue debt for other projects the last two pages are are tax impact estimates um it's a lot of details on this page I don't I'll be happy to answer questions about it but if I basically took the third page is the 10-year option the fourth page is the 15-year option if I plug those assuming that you're paying 100 from the levy if I plug those in and look at what the impacts would be to your uh or to sample properties I have a whole slew of residential different value Residential Properties I **[1:04:13] Nick Anselmo (Guest - Ehlers/Edwards):** I used your tax base as it stands in 2015 so I didn't use what's expected for next year I just used the tax base that's in place right now for 2015 as well as what the 2015 tax rate was and then showed what the difference would be if you added on this new new debt at 10 years and so you'll see the second furthest column to the right says proposed tax increase for each one of those sample properties and that's basically what what the added burden would be to each one so if you had a hundred thousand dollar home taking into account the market value exclusion essentially it would equate to an 81 **[1:05:00] Nick Anselmo (Guest - Ehlers/Edwards):** increase on your on your taxes derived from just this debt on a 10-year when you look at it on a 15 year that impact is down to 59 per year in your in your taxes so that's kind of the down to the Bare Bones difference between the two and again this is this is just hypothetical it's just to help paint a picture for you all I know you haven't considered doing this at all but I just wanted you to be aware of ability to reconcile or restructure if you will as well **[1:05:46] Mayor Jim Michalski:** um just kind of in my head you know when because we were just doing our truth and Taxation before this and uh and I put out a five percent increase across the city we're only bringing 23 000 a year so if we're looking at uh if you do the levy you know the building or the payment is on the levy we almost talked in the 20 increase to get about 82 000 right so um where you see in the table on the upper left hand side it says property tax information again and this is based on on 2015 numbers so it's not correct it's not next year's tax base **[1:06:32] Nick Anselmo (Guest - Ehlers/Edwards):** but you'll see that it's an 11 Point difference between essentially what your tax rate was in 2015 and what it would be adding this layer of debt and that's that's a that's not a five percent increase as you're as you're discussing this is 11 Point difference so that means you're going from 56 to 67. when you actually look at that it's about a 20 increase as yeah as you just mentioned um just taking what you know let's say I want to make sure I understood it that absolutely well I was how I had learned to think of it before if I'm if I'm transposing it correctly and that okay and that makes sense to me then thank you yeah I was hoping with this discussion now **[1:07:20] Mayor Jim Michalski:** that may help us kind of make our decisions as we go on on some of these projects that we're looking at because we have we have two big um projects that we have um submitted for one of course was the road project and we were first we were denied it and I think because of the cities that did get it it came back they couldn't afford to do the big matches so money came back to the state and they they came out and said do we want and of course we said yes because we want to look at it and it was 750 000 matching and the other one is is for a proposal of Arena which is uh a grant we put in **[1:08:08] Mayor Jim Michalski:** for and uh that we won't know about probably until next April um you know when the government of course has done this the state has done with all their projects through the year because this is a I believe we call it the bonding cycle correct and we'll know we won't know until March or April probably April and I think that was at 1.6 million but that is the maximum and of course however our project is below that that's what we would be matching right which which uh probably would be a lot lower like maybe in the four to five hundred thousand matching and part of that would be from the Hockey Association also but uh **[1:08:55] Mayor Jim Michalski:** that's a whole nother thing but I those are two big things that we have out there and the other item which is nice for us to see this with the sewer if for some reason in the next couple of years that we need to expand our capacity with ponds and we don't know if we would be approved to be able to do that or not um I think the state told us with the last three approvals which I think are still current and can be done if we wanted to expand beyond that they said that we couldn't we would be too large of a pawn system we would have to look more mechanical but that would be a huge undertaking of **[1:09:40] Mayor Jim Michalski:** millions of dollars again just kind of like our current one um so have this information to me is critical just to know where we are what the possibilities are how much money and when it would be available how how we would look ahead so let's appreciated if if I could add and again I just want to reiterate now this is and this is a kind of a Do no harm example so you certainly have capacity if there's wherewithal to go ahead and increase the burden especially within the sewing water I know there was a very big increase that was just done on the rates and so I'm very cognizant **[1:10:27] Nick Anselmo (Guest - Ehlers/Edwards):** of that um but uh under that that rate analysis that we provided we did actually include not to the the full effect that you're speaking but there was some future Capital items that were being paid using cash not not from future debt so we did not assume the future issuance of debt but you know if you were to do that I think there is definitely some room within that within the sewer and water but again you know we're very aware of these levels and the desire to try to keep them at where they are and manage them and so I hope that this this does help kind of paint that picture yeah it does very much so I think we have decided somewhere around **[1:11:13] Mayor Jim Michalski:** the 500 000 Reserve just because year to year problems that come up or or you don't know I mean you have to have something to go on and you can't just be at zero you have to have something which is yeah so I want to open up the council questions to Nick on any of this I know this is a lot to very informative yeah it's a good awareness for us and uh we do have some decisions to make as the year goes on on and maybe even tonight on this matching Grant with the streets we do have time when does that go away Mr Mayor we have until I believe July **[1:12:00] Mayor Jim Michalski:** however we have to notify the county also because they administer the part of the program I'm I'm not aware of how much they're into it but we do have to apply through them I think they're the governing body of it of the project so they are waiting to hear if we're going to do anything so if we lose this money if I if I understand this correctly on a 10-year Bond if we went five years on these roads we did nothing and we lost a 750 000 the tax impact on the public would be 40 raise if we've had to pay this on our own India one and a half million dollars we did **[1:12:45] Mayor Jim Michalski:** nothing right so I think that's very important yes and we can choose in that street project there's three different yes areas where you could choose the the least of the world projects or the most expansive or combination or none yeah this gives us kind of a better picture and uh Gene anything that you got Nick thanks a lot and and uh we may be calling you again um just to qualify things as we go along too and that's greatly appreciated and thank you for coming here tonight this is very good solid information I **[1:13:31] Mayor Jim Michalski:** appreciate that thank you you're welcome to stay or definitely can we please appreciate it thank you we did take note of that with the council Peterson on Where the Power and Light is after 2025 there there's a lot of money there no that's very nice to know there's a lot of hospitals improvements that we're going to need to do up there too so that's the sad part so it all fits in the priority right thank you yeah hang on to that one **[1:14:18] Mayor Jim Michalski:** I would advise anyone to hang on to that piece of information um with this packet all right let's see if we can catch where we are in the agenda thank you **[1:14:48] Mayor Jim Michalski:** moving back into number four on the departmental reports we have a number a police chief and I think we're back on page 25. **[1:15:05] Sheriff Kelly Lake:** and pack it **[1:15:20] Sheriff Kelly Lake:** excuse me 52 not 25. I apologize there's not a cover sheet on that my mistake but um just don't let that happen again I guess the the biggest uh news is that they did the remodel at the police department and uh I asked you guys to stop in and check it out it's it's really an amazing transformation from from what it was it's very looks very nice professional it's functional and uh just want to thank you for supporting us with that that Improvement it means a lot to the officers and everybody is uh very pleased with those we've got a lot of positive comments and feedback from other agencies in the public and it's **[1:16:07] Sheriff Kelly Lake:** just very nice so still trying still trying to organize everything we had to move absolutely everything out of the office and we're watching filing cabinets and we were talking the other day I think we've been there 19 years now in that building it doesn't seem that long but you acquire a lot of stuff in 19 years so we had the opportunity to to clean a lot of stuff out and reorganize so um our squads were involved in a assist for the county about three and a half weeks ago where we helped apprehend a murder suspect from Michigan it was a very uh dangerous and harrowing Chase I guess **[1:16:53] Sheriff Kelly Lake:** you could say but uh thank God we were able to get him subdued without anybody getting injured but it's just uh you don't expect something like that to happen in a small town but you just never know so I um yeah but no damage to any of our vehicles the county lost a couple but luckily ours didn't um had the Quick Trip grand opening here a quick trip gave the police department a thousand dollars which I gave to Gene to hopefully go towards our new squad car so that was very generous gift from Quick Trip um had the **[1:17:39] Sheriff Kelly Lake:** meeting with the advisory meeting last week with the Department of Corrections and the msop it's very well attended this last time so uh last night I apologize to the fire district I had about 10 six-year-old Cub Scouts at the police department getting a tour and fingerprints and whatnot but they're pretty rambunctious bunch by some included but uh we had a good time and it's uh it's a good way to show our support for the community so that's about all I have we're very busy too we have about five pages of items here so a very busy month again and **[1:18:25] Mayor Jim Michalski:** appreciate that for the whole Community thank you who's passing on to the crew I will thank you and it is very nice I stopped in last night to see the office and I got a big Improvement and it should make their workflow easier when you know where stuff is yeah you know yeah all the soap operas very nice I want to welcome anybody from the public that wants to stop in and see it we're more than happy to show it off so thank you thank you thank you thanks Steve number four Beaver Park quote for a new swim raft and this is something that the park board has approved and sent up to the city council **[1:19:11] Mayor Jim Michalski:** um I'll turn it over to Jim who's a representative of the Council on the Park Board uh the current raft is longer usable so we asked Joe to give us quotes and he came up with this quote and we'd like to order it and I also get it by summer so we can use it this year it will be coming under next year's budget so um it's already in there it's in it's in next year's budget but we're still in this year so um I guess a contact we made if we can order it and pay them after the first because we do have the money and it's **[1:19:58] Mayor Jim Michalski:** already into it so I'm going to leave that to the up to the Council on the approval is that going to be acceptable it should be as far as we were told at our meeting Monday it was okay **[1:20:18] Council Member Kris Huso:** um I'll make a motion that we approve this I have a second one second very good and by the way ladies it is a food delivery and they'll throw in the two anchors free in the chains I believe so they're giving a little extra for us all in favor say aye aye opposed motion carried **[1:20:46] Staff Speaker (Library/Tech):** technology committee update this is the tightrope movie broadcast equipment and I'm going to be art project for the library thank you mayor and Council um I was asked by the technology committee to ask the council to reconsider purchasing the broadcasting equipment and a couple of them were going to show up tonight but they aren't here so um because you you've gotten all the information from myself and you have that they just wanted to reiterate the importance to the community for being able to broadcast sporting events from from the school and and other community events that would streamline that process so just ask that reconsideration **[1:21:34] Staff Speaker (Library/Tech):** and then also uh on Monday evening the library board chosen artists for the mural project that we put out an RFQ for that money was donated by the friends of the library group that disbanded they had asked that we do a mural in the children's area and so they did pick one and I believe there is a initial concept that Gene passed out to you of what that would look like **[1:22:13] Staff Speaker (Library/Tech):** there are some changes that the board wanted to to see made on that but it would showcase a lot of the history of Moose Lake and um the state hospital and the fishing pier and and the lake and logging for the river and and so forth and although it's not a legacy project it is something that is important to the community so it would be painted on the wall in the children's area and so it could be covered over if needed with with paint in the future it is just two-dimensional so there isn't any sharp edges or anything for the kids to climb on or touch or break so um that money was donated so it is **[1:22:59] Staff Speaker (Library/Tech):** available we would like to give some money up front 1500 of the 4 000 to the artists so that she can purchase um supplies and travel to and from she's from sandstone so and then Gene had mentioned the importance of the art in the community and and so it's good good time to ask for that so discussion with the council and their motion on a pain up front thousand five hundred dollars um to kind of get the project started and it's of the donations that for the whole our project **[1:23:47] Council Member Kris Huso:** open for questions or discussions when is the money when will we receive the money for that was we already have correct oh okay yeah I think in September um it was donated to the city by the president Mr Mayor quick yes completion date was then like by May 1st first uh it would be probably well before that but good so um I so move that we allow fifteen hundred dollars a down payment on this art project and the balance of two thousand five hundred Bond completion and satisfaction of the Head Library librarian **[1:24:33] Council Member Walter Lower III:** second any further questions discussion how much was donated four thousand in total or was it it was sure it was a little over three thousand that Friends of the library did but we've received some donations from from the community that we were able to pay a little more and pay for most of the advertising so so what I'm so good with donations on the coverage okay any further questions discussion all in favor say aye aye aye opposed motion carried thank you Council thank you very much thank you moving on to 4D Harlan and this is a model solar ordinance a **[1:25:21] Harlan (Staff):** model excuse me and Street Lighting on langhorse Court Street lighting opportunity on business drive and the last item leave control **[1:25:36] Harlan (Staff):** members of council uh late last week about Thursday uh I was in contact by a company uh solar cell uh for a Solar Company putting a resident in the town was going to be putting up a solar system in in the city limits what do you want to say who but anyways when I was going through looking for the interconnection agreements and everything the uh because we had a little bit of informal from our power supplier I came across the uh mmeua the Minnesota Municipal utility Association had a model City Hornets in there this is just working coffee this **[1:26:23] Harlan (Staff):** and I started reading through this you know like there's some common sense items that was put in there about the coverage on the buildings like keeping it like 80 percent that way for the setbacks for fire in case for our firemen to get access to the roof areas and there's other things uh for Aesthetics uh rough penetrations I mean it's just a working copy that was I thought I'd be bring it over to your attention mayor I mean we want to look this and have the city engineer kind of looked at that and see if he for especially with the rough penetrations or anything Foundation wise uh because as it stands right now anybody can just throw up a solar cell panel in **[1:27:10] Harlan (Staff):** the city limits without any considerations right now only thing we have is the state mandates that for the interconnect to the utility grid but I just came aware of that when I was looking through this and and I'm pretty sure there are some cities that have city ordinance I got to do a little more research on this but I definitely is going to have to get the city uh engineer in there looking for the penetrations or mounting hardware and that's the reason why I brought this tension because this they contacted me on Thursday and I brought that over to you on Friday and you put me on the schedule right sure of course as a council we normally put them out for a month and we **[1:27:57] Mayor Jim Michalski:** everybody has time to figure in it gives time for Gene to get it to the attorney City attorney and probably it would go to the building inspector and they mentioned engineer better be probably a building inspector that would look at it and and of course our City attorney also Mr Mayor they're looking at putting the system up in early spring this come next year so I figured this was a time to do it in time to do it yes sir they give us time and we'll be back on the agenda in January then yeah uh just especially thinking about for the yeah access to the roof for fire you know Jason happens thank you appreciate that Mr Mayor on yes page 72 just one thing I would uh **[1:28:42] Council Member Kris Huso:** look at I know it's a working document and I did talk with Harlan just for a second here on under d I would put a number two under there because there is no teeth in it for the city if they if there is uh let's just say it's a blight on the roof there's no teeth for them to be able to take you have to remove it so the city could do something like a 90 days to completely remove the entire system or the city would remove it at their expense at the homeowner's expense **[1:29:20] Mayor Jim Michalski:** mayor just clarify that so Harlan this is for a solar system that would be within its self in the city limits yes sir in the city limits and also it would affect that if you would hook up to our infrastructure our power oh both of them and we're I'm kind of playing ketchup right now I'm working on an air connect agreement we'll have to bring to the water light commission and now policy right now okay uh so this wouldn't affect then the Grid at all okay so hopefully at the next lower light commission I'll have that pretty much together then good job **[1:30:06] Mayor Jim Michalski:** thank you thank you on Item B the street light and laying Horse Court uh resident request that we put up a light on that in that uh cause we sack and it is dark back there I drove by there but because this city pays electric bill city council needs approved putting up that light up in that area on that okay so we need a motion tonight I'm about a street light and this would just be a poll a regular wood power pole with our street line on it correct yes sir okay um our estimated cost **[1:30:52] Mayor Jim Michalski:** um we can get those uh the brown remember the old brown fiberglass one you can get those for like three to four hundred dollars and set those in okay a little more decorative than just uh and one pole is actually be about the same cost okay somebody's get the nicer looking as a newer development so total cost you think uh foreign fifteen to two thousand dollars sir fifteen hundred to two thousand dollars total install that looking at that roughly right off my head on that what do you normally have that budgeted Imaging that's general fund my **[1:31:38] Mayor Jim Michalski:** question let's pay the bill yes sir okay we install it sounds a lot better with that you pay for the electricity is that with the new um LED light yes sir okay very good console do you have motion I'll make that motion you have a second I'll second it all in favor say aye all right poll is motion carry thank you sir uh uh streamline uh as you restricted by the mayor I did some price quoting for the decorative Lighting on Opportunity Drive **[1:32:23] Harlan (Staff):** uh but the monies that the developer gave us gave the city we've been able to buy four poles with running light commission buying the fixture so the Sip Monies and and that would include the uh most of the installation costs the concrete foundation the fillers in that of that twenty five thousand dollars okay so and we'll look at next year from that answer the spring once it falls right the street lights are up there uh at the no no no no no no no no but that's beyond that twenty five thousand yeah what we'll have to do is **[1:33:08] Harlan (Staff):** uh there's a spacing that we have to follow so we'll pick initial fill in and see where that and then um next summer that other project hopefully those 20 units will be in there will no more help many more street lights and we'll have to budget for the following Year's budget but this next year using the 25 000 it was that was part of the project we'll install in the summer that's kind of the plan and I just wanted everyone to be aware of that if Is it wise to order them now do you think the price may go up I don't know why I was talking to the spider that initially split the ones up on Park Place because we're trying to match right and keep everything the same **[1:33:55] Harlan (Staff):** it makes maintenance easier correct uh there ain't much maybe a couple hundred dollars difference from what was originally when they bought them up on Park Place to now so and they were trying to remember what the quote was well this is independent of the budget that 25 000 correct Gene it's already it's part of the for the project so we could approve it tonight could prove it so he could order it and it could be uh started until the spring yes sir so I'll leave that up to the council let's remove all the information so I pick a motion that we purchased for street lights for the **[1:34:44] Council Member Kris Huso:** progress right what's important opportunity there we go thank you drive can I have a second second any questions all in favor say aye all right opposed motion code I'm gonna cut over that cut over oh we're finally down to our last feeder uh we had the little hiccups I'm sure some people are aware of some bumps and where the power went out uh on uh on the south end of town we found out our relay settings were a little too tight we had to open those up because initially **[1:35:30] Jim Pederson (Power Superintendent):** it was an over current after that little snowfall a little snow a little more current on the neutral and it hit went through the three shots the cycle and locked that out so we had to scrambled them get those opened up and in the old gear we have a lever that uh for racking out the breakers well it was next to the downtown feeder I was trying to open that up we were having a little problems with that one so we may just leave it alone but I accidentally hit the lever on the downtown fear that's the reason why the lost power here in City Hall in the downtown areas that was only for about 30 seconds **[1:36:17] Jim Pederson (Power Superintendent):** because it's we got all our break the old Baker's pulled out and there's no room to maneuver around in there so but uh hopefully everything's done being up off and on until about mid-January mid-January we're going to be doing our final test that's where we open up the breaker on the transmission I mean not the breaker but the switch on the transmission line make sure everything functions in that new control house we're going to be putting this North half the city in the dark for about two minutes that's when all the automatics should kick in generators fire up and bring the feeders back online and part of the town after everything's completed after all the **[1:37:02] Jim Pederson (Power Superintendent):** commissioning done we'll close that switch back in and everything should realign go back to normal utility power so we'll have to advertise that well that's the final step in this upgrade on this control house but we're like I said we're down to our final fear we should have that done and next couple days and then we can uh finish putting up Christmas decorations in Jonesboro Council I just command Harland and this whole crew on what they're doing you know excellent the guy's been working their tails off this hour unbelievable they're getting a little tired that was one question I had before only late star on arrowheads because people **[1:37:49] Mayor Jim Michalski:** have been asking me and the second one is anything on the siren oh second one seven well the wires truly a power plant and where the siren is next to the old well house it's frayed so I I contacted Ralph Sandberg to move that control over to the old old well house so it's right next to the siren and he's going to be working on that here next month or two hopefully it's just we need by spring for sure yes I expressed that Mr Sandberg on that one so he says no problem on that being in there before spring and we're taking down those wires anyway **[1:38:36] Mayor Jim Michalski:** so it's logical to move that over to the old well house next to the siren very good and the Christmas stuff will go on next week hopefully yes sir thank you appreciate it thank you now let's see I don't think I saw that skip anything can you jumping around a little bit but I think we got it all moving on to number five previously discussed business um the first one is uh the pawn shop ordinance we're talking about any new action by anyone at this time **[1:39:27] Mayor Jim Michalski:** you have no no information on that at this time okay 5c considering Norwood Drive Robin Lane Extension informal survey of interest and impossible single hookup we'll stay here tonight at engineer **[1:39:55] Mayor Jim Michalski:** or maybe just to qualify our one last statement of I did talk to Gene and to Steve a little bit about this um is a possible solution without having to do uh big so I mean a lot of project or a new authorized we'll have to have all the setbacks and all these other rules that would fall into maybe uh which we have done on the north side of town for one individual that lived on at the very end of uh of Industrial Drive to put in a single smaller water along to the home **[1:40:41] Mayor Jim Michalski:** and it may be I think down there was a couple hundred yards they'll have to run it it's quite a ways and this is a lot smaller this would be up by where the uh imagine where the fire hydrant is and have to go down the side of the street to the home Mr Mayor members of the council I think it'd be like a little less than 300 feet to get it to the house that I assume Jean sent out or tried to contact the seven properties that don't have City water that have the wells and you only had a positive feedback from one um that's usually the case anybody that has Wells that work they don't want to **[1:41:27] SEH (City Engineer):** pay an assessment right now to pay for it um that would be the council's decision defer assessment if you were to do the big project the mayor asked me is there a different way to do it and it it could be that the one house that needs the water right now which is the White House the third third one from coming back from the end he could run an individual service line in the cities right away and tie it into his house he could do that on his own as his own project he would need to get a water permit from the city to do it and then we would have to kind of normally cities have a **[1:42:12] SEH (City Engineer):** part of the permit fee is is either a bond or a financial guarantee that says he'll patch the road or patch whatever disturbance he does when he's done but that that again I'm not aware if you if you guys have that if you don't we really should have it to make sure that the contractor does a good job and the city doesn't lose their investment in the street so if you remember we did bid that job and it was 186 000 to do it now that's too much for what what was and one of the ideas was to bid it again like early late winter early spring this year and see if we could get more interest if we extended the deadline for doing it those are just ideas but it's **[1:42:58] SEH (City Engineer):** up to the council right now we have one resident out of seven that said they would want it and that was qualified with if it was under 7 500 and I don't I don't know where the 7 500 comes from you know considering what a new well would cost um that was where you're at that would be kind of a test for me is what would a new well cost if the assessment was you know if that was the route if the assessment was in that range um I would think it's definitely fair and easily provable so but there again at this point maybe we just don't do anything until we get more interest in extending it and **[1:43:45] SEH (City Engineer):** there is a way for that property to get water but it would be at on his dime to extend it down there but we could issue him a permit to do that and I think that's a good option we we could do we could ask for bids again in January or February and I think one of this to me is the single option is to me one of the probably the best option least expensive for us but it would solve his problem if he yeah and how their course as Steve said there's some problems you'd have to go under driveways to get down to his **[1:44:30] Mayor Jim Michalski:** property and that would have to be of course part of the project or whoever got the bid to do it to correct those disturbances that happened I don't know if they do drug drilling or that would be even after pretty deep for a water line though the minimum depth for water service would be the seven and a half feet and it is an option that if we looked at that Corridor again he may be able to get a directional driller to go through there and that would be the best for the city because then he wouldn't be disturbing that street there would be a uh the two ends you'd have to dig up and do but that's that may be cheaper for him too yeah **[1:45:19] Mayor Jim Michalski:** we got the one place for the gas is but knowing that once they then they have to expose that to whatever it is um not true but you know the gas company could qualify that for them but it's an option I think we need to discuss and bring forward to them if everyone agrees it's too bad everybody's well doesn't go out at the same time because then we would have seven people coming in and asking to do it and we could figure out a way to to do it then I think but with just one property I mean the council can choose to do it but it would be kind of a battle to get the you know to do it so **[1:46:05] Mayor Jim Michalski:** um **[1:46:11] Council Member Douglas Juntunen:** to boilens Dwayne Grace would be the other one it yeah it may be that right at this meeting time we just table it and let the neighbors down there you know discuss it amongst themselves and come back to the council it would be so much easier if this was a petition project where they all came in and signed a petition to get the work done yeah um right now we only have I thought we only had the one initially there was the red house on the very end that was condemned I think that but that **[1:46:58] Mayor Jim Michalski:** had a Goodwill that they wrote maybe for the operational once they clean it actually get power back to it correct that's all hello we do have time but I want to make sure you heard that option of besides doing a whole full project there's the possibility of individual tapping in like we did at the north end of town at the North End we did pay for but it was a two inch copper line from where the where the hookup was down our street to her property and I think she had to pay it from the property into the home and that would be of course a lot cheaper than a full project too **[1:47:44] Mayor Jim Michalski:** and I think that was done in 2004 or five do you remember do you remember Mike did the work I don't know if you remember Chris he was like 10 10 to 12 years ago um she wasn't even born then was she oh my God no I don't recall that oh but I guess I I would like to see us give them this option but I'm not sure on um why the city would understand I guess I would like to give them that option that they could look into that um yeah to see if that would interest them sure question is then when **[1:48:31] Council Member Kris Huso:** start failing or even that's the same thing **[1:48:43] SEH (City Engineer):** they had this service line and you say well now we have to do the project because all these walls that's a good question if other Wells started failing and the council was approached to to go back the plans and specs are done go back bid the project and put in that mean I would ask that the property owner if if this were to happen and he put in a single service down there now that he install a curb stop right where we would have installed a curb stop with the project when the mean comes by we would go from the mean to that curb stop and then abandon that line going back up I would want that **[1:49:28] SEH (City Engineer):** it would just be hard for the guys to go out and locate that in the future if they have to do a dig so if we were to go down that street where the water main we would reconnect to his curb stop I would would advice too that if he puts that in in the future there'd be no benefit to that parcel for the mean that goes in really he had he would have City Water Service we're really not giving him anything and the advice there would be we can't really assess him in the future because he paid for it right so and that's fair but that it if it's done right when we went by with the main we would just connect to **[1:50:14] SEH (City Engineer):** his curb stop and and so that would be how that would go thank you um any other information on C you've got a bunch of them here Steve I numbered my sheets so the next starting would be D um Lakeshore Drive um no no new information there wasn't a pay request that came in but I would expect one that to come in at the January meeting we've been talking to Kaminsky about getting us his final quantities **[1:51:00] SEH (City Engineer):** so I would expect one at the next meeting but I don't have one tonight okay next item would be 5e review opportunity Business Park punch list and I have no new info at this time I doubt we'll see anything until spring warm-up although it okay kind of feels like spring again but yeah maybe a 5f Moose Lake Race water treatment facility upgrade number one is update a project number two is pay request number four and number three is right away easement Lake County power Mr Mayor members of the council Brian sent up his update **[1:51:47] SEH (City Engineer):** um and that was should have been the first item in your packet and he explains what got done in the last month and some pictures of where they're at right now yeah and I we're really benefiting from the good weather that we're having too that that's that's moving along nicely Brian's happy so did the council have any questions on that nice looking well I see a big cover on here right now down there which again it looks like ready for cold weather well anytime it's full if it gets full freezing they gotta keep it harder here so yeah then the pay request is in there **[1:52:33] SEH (City Engineer):** and they're the amount due for this pay period is 163 847 and 45 cents and that puts them at about 37 percent complete and that um they look right to me and Brian assured me that it is right so it's who need to make a motion on the 163 847.45 this is pay request number four I'm so move that we um accept pay request number four at that 163 847.45 **[1:53:21] Council Member Walter Lower III:** do you have a second second any further questions discussion all in favor say aye aye opposed motion fast we'll have to do that signature tomorrow this one **[1:53:56] Mayor Jim Michalski:** foreign **[1:54:11] SEH (City Engineer):** Lake County power Mr Mayor members of the council in your packet there was a really blue photo um we need to get power up to the right where it says Hank first road okay and in order for um Lake Country power to put that line in the city needs to Grant an easement on their the city-owned property and that's kind of we're gonna parallel Minnesota Powers **[1:54:56] SEH (City Engineer):** lines initially we thought we could be underneath them as what I was told and they told Lake Country power that knowing you can't our our lines sag too much during the hot weather heavy use period when the lines get really hot they sank so we have to put our line sort of off to the side right on the edge of Minnesota Powers easement so the city would have to Grant the easement as described by Lake Country power okay this is appears to me to be totally acceptable if we want power up there we we have to give them the easement to do it it doesn't take away our ownership of **[1:55:41] SEH (City Engineer):** the property it just allows them to come in and maintain the line we have easements on other Parcels for power lines that that the city owns so there's a second easement and that isn't um Lake Country power will need an easement from the Schmitz which is at 175 foot strip down below our property line and that's another easement that Brian's working on so but what what they're asking for is that the city go ahead and sign the easement tonight and then once the power line is actually installed which it'll be very they're going to put it in the way it's **[1:56:28] SEH (City Engineer):** shown here but then they'll have it surveyed and then exhibit a will be then produced if that makes sense they won't produce that until they actually put the line in gotcha so very good in the Eastman agreement itself was drafted by a Lake Country power and I guess the City attorney may want to look at it but it's basically just giving them the right to put install the line and maintain the corridor where the line is so we need a motion uh on a tentative approval by the City attorney oh I'll make that motion **[1:57:13] Council Member Kris Huso:** do we have a second I'll second it open for discussion questions straightforward all in favor say aye aye opposed motion code and probably you got that tentative on the City attorney thank you thank you Paulo that moves us to uh G Park Place Drive no new updates for the console on that we're just waiting to review it again this spring and and then we'll make sure all the settlement has occurred and then we will work through with A1 the contractor on what needs to **[1:58:00] SEH (City Engineer):** be taken out and put back in they did go up there and do patching for the winter yeah I saw that yeah and they did leave a pile of cold mix up on the hand there too and hopefully we won't need any of it but very good that brings us to H Highway 73 project update and it sounds like we have none at this time there was Mr Mayor members of the council Roberta Dwyer did ask that we forward her all the comments that we got and I did do that um I think she had them all already but I just made I sent everything to her to make sure that anything Gene and I received she got but yeah I think it was all on **[1:58:47] SEH (City Engineer):** her cheat so now what they're doing is revising their Access Control plan and I asked that she'd give it to us ahead of any next meeting so that it isn't just sprung on us again at the meeting like it has been the last two times at the first time at the stakeholders meeting it was handed out and we had never seen it before and then um at that last meeting when we invited the businesses to come that was a revised plan that no one had seen before the meeting and I I asked her to please send it up to the council so we can see it before any any other meetings I think that's only fair but **[1:59:35] Mayor Jim Michalski:** yes and I think that's it for this section we do have uh a few down in each um and we'll get to this quickly and this unless you're going anywhere okay thank you Steve and then does anybody have any questions Steve thank you we're good that brings us to five I considering reimbursement for past HRA Audits and that is on page 86. **[2:00:16] Mayor Jim Michalski:** I'd like to table this for the next city administrator Council consensus yep I'm fine with that very good we'll be uh tabled for food generally I'm not sure but hopefully number five Jay FEMA flood update no new information I think we're still waiting for the a few payments in the last of course next year we have a few more but everything up this complete complete reptile has been submitted correct we'll have one more just just the which Steve was just **[2:01:02] Mayor Jim Michalski:** talking about I right okay okay that brings us to 5K hiring timeline we'll see the administrator Gene if you could kind of fill us in on the latest has been discussed and come to an agreement tentatively competitively background checks and reference checks and if everything checks out we should be good to go and Doug you were thinking that but it'll be Friday Friday thank you employers okay 30 days after that's **[2:01:48] Council Member Douglas Juntunen:** very good I think it's public it's public go ahead Miller Diane Miller where is she from lives in she lives in Chanhassen and works in Lewiston I guess with that I when do we want to set a special meeting before when Doug gets back I think as soon as he gets back with that info then I think would be nice for us to know so we yeah **[2:02:36] Council Member Douglas Juntunen:** I just said it once we open the next week you know yeah it could just be a short meeting yep sure sure **[2:03:00] Mayor Jim Michalski:** all right Monday the 14th year how tall soon need to put together the info for yourself you probably need a little cars don't have any uh forms here uh it would just be basically me doing notes okay on the references and the people that I talked to given a brief synopsis okay so that can be done my first day off is the 16th 16th it's Wednesday it's Wednesday so happy in the evening I worked at 6 p.m okay Chris Wednesday would be fine with me and I think that still gives us a timeline what time Wednesday because I've got **[2:03:46] Council Member Kris Huso:** power light up three starting at 3 30. probably won't be done until like 5 30 or 6 o'clock six o'clock well then couldn't we do it earlier if you have Mike's cup over late no I mean that if we can't do that until six and maybe we're still six the other days Monday or Tuesday is better that won't be available Tuesday the Wednesday at six times okay Wednesday would give me the day because otherwise I'm working I'll make it work for you know Wednesday if we can do it like a five-ish or something or take a recess because it probably would probably wouldn't take us very long but I can't take very long to give the information to you no yep there would be **[2:04:33] Mayor Jim Michalski:** no problem I would be fine 5 p.m okay anything special 16th of December and then there's Bryce doing the background check or is somebody else doing that we haven't requested with other than on what Doug is proposing to do and we could request basically right well I plan on going down in the community and talking to you but I mean the regular background check background check I'm not doing an official background check now conclusion are you just asking for like criminal background check or I think it's a pre-employment **[2:05:18] Council Member Douglas Juntunen:** type background check I I know that's different than what we would typically do for law enforcement higher what have you done in the past like for the pasta City administrator well I don't what do we have Gene talk to Marguerite to do a background check I would do it that way has she done it that'd be the correct way to do it has she done background checks I wish you could hire somebody that care let's ask let's ask her and you can communicate with how many we do this however communicate get back to the executive board and executive board make a decision on what direction you **[2:06:05] Mayor Jim Michalski:** want to go from there that way we aren't wasting any time and you guys can absolutely yes we have to have to um **[2:06:27] Mayor Jim Michalski:** yes let's do that please uh-huh why don't we do that why don't we just do that give that to Gene um please tomorrow and uh and she can coordinate with the executive committee administrative committee excuse me consensus from everybody sounds great very good thank you I'm glad we qualified that because I was kind of wondering myself the direction we went very good as well **[2:07:11] Mayor Jim Michalski:** moving on to new business we're down to 6E 2016 CMB license renewals **[2:07:27] Mayor Jim Michalski:** number five any issues from our police on any of these or **[2:07:51] Mayor Jim Michalski:** something there we go so counseling motion I'll make a motion we approve the uh 2016 license renewal for the cigarette license off sale beer and on sale three two for the listed individuals do you have a second hi second any questions discussion on trailer so I I suppose occurred **[2:08:29] Mayor Jim Michalski:** that brings us back to student number H discuss the possible did I miss one gene G excuse me 6G approved hiring of Stefan G Whitehead and Jonathan Anderson part-time seasonal maintenance assistive positions at Riverside Arena we did have a person that resigned last month I believe and um what he's doing hiring one replacement and having another person Carmen lake is a backup or someone can't make it or or whatever um no no maybe if they needed if someone **[2:09:16] Council Member Walter Lower III:** is missing can't make it can I ask who did these interviews or Kyle recommended them did he interview them or did he recommend it to the park board I mean I I guess I never heard um about these individuals no I suppose you should have talked to you first I think he was just in a hurry because the guy left has no backup he was all hurt you know what I mean well I mean I guess I would have liked him have talked to the park board to get their support and sure and we can and which is one thing I do we have we should get some background checks on these tools also because they are dealing with the **[2:10:03] Council Member Walter Lower III:** children so I'd like to see it go through the park board to see what their recommendation is or we could make a motion you know upon approval of the park board we did talk about it General representative guy did tell us about it all he told us is the two people that one resigned yeah we mentioned who I did I remember him mention his name and the other individual is a backup let's put it that way there was no motion made on it the past hoes were interviewed and held by God before that was the process and **[2:10:49] Mayor Jim Michalski:** then brought to the council if **[2:10:57] Council Member Walter Lower III:** I guess the council's just getting direction I guess I would just like to have seen somebody involved other than just Kyle with this process I mean it's **[2:11:14] Council Member Walter Lower III:** you know it'd just be an extra you know yeah he well I don't think they can I need them I think who needs to know yeah we had to call a special meeting as soon as possible as he meets the people now um I don't know I I guess I'll make a motion that we hire these two but I think as a we need to change our hiring practices and some of the other areas so we could do this on a temporary basis till the January meeting to discuss the whole hiring process oh that's uh temporarily I'll second that temporary **[2:11:59] Mayor Jim Michalski:** higher all right for discussion are you comfortable with that Chris Doug so the park board has a problem you can make it what does temporary mean if uh January we decide we don't want to do it we want another process we're done until our process is completed would be just temporary to fill into it because he needs the help right now so any word had a problem so is it going to go back to the park board then as requested by okay I'm fine with that **[2:12:44] Mayor Jim Michalski:** we'll give you a second correct well I'm in favor so I I suppose motion code and that brings us to H Steve discuss discussion of possible donation 960 feet of 10 inch sewer pipe and of eight inch ductile water pipe to Moose Lake School has to do with that meeting that we all had with architect and uh in the developer and the City and this took place just last week Mr Mayor Miller Council I guess what **[2:13:31] SEH (City Engineer):** the city currently has 900 and 60 feet of the 10 inch 10 inch sewer line we have quite a bit more of the eight inch ductile iron pipe the school is asking that the city um donetate that to their extension to the new School site from where it ends now for opportunity Business Park uh I believe the city tried to sell the pipe at one time and didn't receive any bids and I mentioned to the mayor that **[2:14:17] SEH (City Engineer):** if we did a project here in town and the contractor said I'm going to buy pipe from a different city there's no certificate of compliance coming with it there's I I would say no you you supply me for the city you supply new pipe so I I can understand why the city didn't receive any any interest in that pipe for a public use here though it would be being put in it ends up being the city's pipe again once it's in and it's accepted as a public Improvement the city owns the pipe again so we we really kind of gave it to ourselves **[2:15:03] SEH (City Engineer):** is how we are looking at it and as far as the warranty goes if we feel it's good pipe then center it's we're going to accept it it's our pipe to begin with so I it but I the big benefit is we don't pay for the pipe being put in in other words this is our donation to get the pipe for it is right now on the east side of QuikTrip down Muslim Drive East Turtle school property without us having to pay for that installation our part of it is donating **[2:15:48] Mayor Jim Michalski:** the pipe um I'm kind of speaking for you Steve but and I talked to Spencer about it and he said there's just no way he's going to use all that pipe and he doesn't need that pipe what he needs is small for very useless small pieces and he has what he needs and he said that pipe is just sitting above ground in the sun he said it needs to be used so this is to me uh it's a win a winning for the city and for the school because then it does decrease their cost of the project and uh the benefit is we get it along the new road and actually they're going **[2:16:34] Mayor Jim Michalski:** to put it straight west towards that was my question are they going to run at the we're going to run it straight west towards yeah towards a Shopko and then South to the new building so at some point when my road is put in as soon as already there so that's a big benefit for any developer it's a huge benefit it kind of helps open that up for development one of the things they're requesting is that they'll do it that way if the city will accept responsibility for that pipe then up to where the school property the school itself is and talking with Spencer he has no problem with that there'll be manhole's **[2:17:19] Mayor Jim Michalski:** end sewer one of the difference is it's it hasn't been developed yet in essence it screwed property all the way to the school but that's kind of like the buy-off we're trying to do this so we have no expense along the road at all and yet we're losing the pipe they're going to give us easement right away for that sort that has to be established okay I because that'll become the utility easement for other things electrical water the whole I am the whole thing did I explain our HD if you didn't yes you did really so yes there would be there would be an easement we haven't seen that yet but we did talk about that **[2:18:05] Mayor Jim Michalski:** um but we wanted to pull the rest of the council make sure that donating that pipe was acceptable and then those the the actual agreement you know that the city would take ownership of the mains once they're installed to City standards and they would be located within adequate width easements for for uh future maintenance sewer and water from a school so a Wastewater from a school is 99 just gray water it's not a big maintenance item as far as taking ownership of it and we own the city owns the sewer lines now coming from the school and that's kind **[2:18:52] Mayor Jim Michalski:** of the business that that the city's in is collecting Wastewater and treating it so that was kind of a discussion that came out of a meeting last week in the city or the school now is looking at bids or taking vids for that whole run from the School site all the way down towards shop Corps and going east and hooking up into our pipe in right next to QuikTrip on the east side we also should mention we did check with the city attorney and she advised that it it was in her opinion proper for the city there **[2:19:39] Mayor Jim Michalski:** wasn't anything illegal about donating the pipe to another public entity for public use and there again we're actually ours anyway it ends up being ours in the end anyway at the cities in the end anyways so we're kind of giving it to cities giving it to the city so without the expense of putting it in I know yeah and they're putting in the at our standard all the uh um Wells all along manhole man all the way which is a very expensive also so I guess we're looking for a motion **[2:20:24] Council Member Kris Huso:** from the Council on this item I'll make that motion that we donate Str Ike the pipe that we have available yet if they will even need that but if we do it now it's there it will be the 10 inches they need for the sewer we encourage them to come in that way with the water yes and if we're ahead of it finding if they don't take it we just keep the pipe then okay I'll second that if and then I think we have to be responsible for the Integrity of the pipe the city once it's installed correct right do I need to state that the pipe is as is **[2:21:11] SEH (City Engineer):** the attorney asked that that be stated um okay now that you mention it it's as is with no warranty if they start putting it in and it it's brittle okay um we're not warranting it but they are free to go out and look at it and I believe it's the pipe is fine so but that is something the attorney mentioned oh you guys it's as is no warranties it all revise by second any further discussion or questions all in favor say aye aye opposed motion carried Mr Mayor um I hate to digress but Harlan brought up something about the **[2:21:58] Council Member Douglas Juntunen:** right-of-way agreement and maybe Harlan you can explain it it's something he would like the attorney to maybe put in there uh I was looking at your the right-of-way agreement with the country uh Country power there mayor it's avoiding in here Lake Country power has right to construct new facility and stick extensions of existing facilities within that right away I can see down the future we're going to have to put a treatment facility in but they would have rights to pretty much exclusive rights to service that Prima facility also with this substation or are you talking about yeah **[2:22:45] Harlan (Staff):** at the sewer passer that right away that he just talked about that easement coming down yeah right yeah and as that as a as a facility I could see it being developed eventually a treatment facility we would have to buy as a electrical utility would we would have to buy that uh service from them so what are you suggesting that for where this reads it should be extension of the system installed new facilities in with a limitation that the if the city would **[2:23:31] Harlan (Staff):** take ownership of the right away we would just pay for the materials that was used at that time along in those lines sir okay you got that Gene okay and Paula Paula has it has it done okay this this way this reads so they would have pretty much control like country power and we would have to as the utility we would we would have to buy that service back from them okay I got you thank you appreciate it good point I really wanted to expand a little prayer I want to provide our own power too sense **[2:24:18] Mayor Jim Michalski:** um let's see where are we at here we're at I I believe I'll make sure I got it it's Coalition of Greater Minnesota City's requests for voluntary assessments Wastewater legal and Regulatory program before **[2:24:44] Mayor Jim Michalski:** I'll get down to the on page 109 the request um request the cities the cgmc membership voted to pay for this legal and Regulatory program through a Voluntary Assessment in the amount of one dollar for each waste water hookup for example a city that has 1 200 commercial and residential Wastewater hookup hookups in its town would contribute one thousand two hundred dollars because this is a Voluntary Assessment the city could choose to contribute more or less than that amount this assessment is for 2016 at our 2016 annual meeting in Austin Minnesota we will evaluate the progress of this new fund and they **[2:25:31] Mayor Jim Michalski:** decide how to proceed in future years attached to this lady will find an invoice slash Patch form if your seat is willing to contribute to the cgmc legal and Regulatory program please return this phone form you can pay now by check or pledge to pay in 2016 by June 1st and we are members of the Coalition of Greater Minnesota cities so I brought that to the council's preview and since we just you're just getting this tonight if you choose to you can look at it consider it for the next month and be on next month's city council meeting **[2:26:16] Council Member Kris Huso:** we've usually done that through 10 years yeah I'd like to take make a motion to table this until next okay second all in favor say aye aye op close man okay we may need to know this by 2016 or when you have to notifying that it's stable to next month **[2:26:50] Mayor Jim Michalski:** since the 6th J 2016 Capital request and I believe that is our list I gotta dig mine out again **[2:27:11] Mayor Jim Michalski:** along with this item we need to make a motion to pass the budget and the five percent we're ready that's the five percent thing we have to do it officially at city council meeting after that taxation because we did it right at the end of the right before we closed the truth and Taxation week that was uh to bring it to the council yeah it has to be done during the regular council meeting and that the recommendation was to pass the budget with the five percent tax Levy increase so it brings us to the 2016 Capital requests **[2:27:57] Council Member Douglas Juntunen:** the thing that we questioned on theirs is we thought we took the Knollwood project off at that last meeting right yeah yeah that's what okay you know we have an option right now um but we still are in a limbo kind of state I think I'd pull it off or anyhow would we'll use look for other avenues even if we go down another path **[2:28:31] Mayor Jim Michalski:** you do have to remember we do have Reserve but that Reserve is tied up with uh that sewer full payment process so whatever money we do pull out of Reserve we had to replace it because of that long-term payment or the other options that that Nick just gave us tonight if we look for bonding for some of the things it's to come I guess that brings us with the items that are on it it sounds like we're pulling that hundred thousand off okay I would agree um Mr Mayor yes did meet with water and light or water Public Works and we were they were **[2:29:17] Council Member Kris Huso:** working on their budget themselves for cutting it and they could cut about 10 000 off that would include the lawnmower and less chemicals that they were going to purchase because they don't know how much chemicals they're going to have to buy for the new ponds but they did request if they could have that the truck because the old truck is shot and uh okay so on Public Works truck a one-ton replacement replaced in the 1997 Dodge Park okay that's the Dodge I think that was 27 000 if I ever why any of the numbers on right I thought it was 27. Mike do you **[2:30:03] Council Member Kris Huso:** remember I thought 27 but I'm not sure I wouldn't why don't we do that Gene will get that one we can move on to the in the big reason why is because they're Towing like that jet trailer and stuff they can't tow it with the size trucks that they have anymore by the laws they have to have the one ton to toe things now so saying that cross out the Public Works more right now that's what they've yeah okay and it actually was like a you know I think the more was like seven thousand but they said they could do another 3 000 on chemical so they could kick in I think that was like about 11 percent of their budget ten thousand cut **[2:30:52] Council Member Kris Huso:** I would like you're saying excuse me Chris you're saying within the the overall budget not on this page but on the other errors so you're saying you could add you can add candles budget yep okay which you could then put the mower back on there if we wanted to well this way till June gets back um because there are other items on here that we may want to prioritize um before the more I would like to to uh propose or make a motion that we add the kitchen **[2:31:39] Council Member Kris Huso:** project for the Historical Society on there for the 25 000 I think that's very important that we get that completed and um I think it'll be more rentable I agree and do who gets do they get all the rent for that or do we import the city get a portion of it or how does that work I believe right now it goes to them I'd like to negotiate something with a way to recoup some of our money we put into that place first they put everything they get back into the place so Chris did you say you made a motion well if if I need to make a motion or just propose how I don't know how you want me to do it I think you'd I think you do emotion at this time I'll make a motion that we add the twenty five thousand **[2:32:25] Council Member Kris Huso:** dollars to the Historical Society for the kitchen project completion second discussion all in favor so I I propose so that is the other Don Gene the yeah 25 000 on Mr Peterson said they subtracted 10 000 from their budget so would 10 be added on to this total by them doing that **[2:33:02] Mayor Jim Michalski:** their chemical chemical and the mower is what they said they would yep so it'd be another three thousand that they could cut so I could take three thousand dollars of the chemical they could do that yeah just three so you're saying that in thirteen thousand yeah the three thousand okay talking about taking the mower off here I got you mower was seven thousand so I got you okay 27. she already pulled the more I already pulled the mower off so it's a more Point you're talking three thousand **[2:33:47] Mayor Jim Michalski:** dollars yeah yeah you're only talking three thousand so it's 24 24 basically correct if you increase there yeah chemicals by three **[2:34:05] Mayor Jim Michalski:** and the police recall that he that was agreed upon at the time that's forty thousand okay the truck that brings us down to uh the park mower that was approved and the rotor program we're ready for the the that is not okay that is uh that's better be a rental yeah I think Brent okay the unit tables and chairs two thousand okay and the sir judder trailer that was approved twenty thousand electric for the new Pavilion is on hold **[2:34:52] Mayor Jim Michalski:** handicapped accessible doors to the library 6069. now I have not given that information to everyone yet June they may help us with that the senior um living home wellness program would be great then it brings us to uh Mary rubat is now off you know um we have the broadcast equipment we which was 20 27. **[2:35:33] Mayor Jim Michalski:** and we heard Steve talk to us today I don't know it's a benefit to the school and the community and to the people involved with the broadcast parts so that's up to the council if we don't use the molded property that does all the money for the Nova that there's a hundred thousand there which you know there's a possibility we've had funding be used at other places we could also earmark some of the project as well we could earmark some of the money for the project as well if we didn't go with the whole project I don't know if that's beneficial or not it's an option well if we put the 27 000 back in there **[2:36:18] Mayor Jim Michalski:** roughly we'll be spending a hundred and thirty thousand of the 170 000 that was 77 we have left is that including the historical system that's normal 105 145 000 of that leaves us a little cushion yeah we're still too which **[2:36:45] Mayor Jim Michalski:** and that's still better than years past yeah having miscellaneous money yeah we shouldn't definitely shouldn't get written up not this year so much next year we should be we should be totally clear of of funds that have not been allocated unallocated expenditures and put it that way so what is uh what did the council decide on that made a motion yet to put the broadcasting I'll make a motion then to see where it goes here if we're going to put the broadcasting equipment back in the budget twenty seven thousand six ten I believe discussion and again we need to you know look at it **[2:37:32] Mayor Jim Michalski:** piece by piece of what needs to go in I agree with that too see what benefits they are for the public you know so we would want maybe uh before this is expense maybe a discussion in January on on how that is spent and what is going in and I would partake in that discussion okay okay that just budges it it's budgeted but we want to see it brought back to us for approval okay opposed motion carried that brings us down to **[2:38:17] Mayor Jim Michalski:** them the total package the total budget practice plus what you've approved right here the total budget been with the five percent tax increase and we need a motion on that well I will make that motion that we approve the budget with the capital requests and the five percent Levy increase can I just make a comment do I have to prove them together or do we have to do them separate I think we would do it all together I would prefer to them separately because yeah the levy is one issue in the budget I would probably prefer okay then the budget first I I'll still make the motion that we **[2:39:04] Mayor Jim Michalski:** approve the budget with the Capital Improvement okay requests do you have a second a second go ahead you can **[2:39:23] Mayor Jim Michalski:** increase I'll make that motion and I'll second it before discussion you know we need we'll need those funds for roads and you know it's uh all right just improvements of the city and I agree to that but yet I still think with the large increase with the utilities that that's I would like to see a zero again this year **[2:39:57] Mayor Jim Michalski:** if we're going to do it myself um I think with the increases we've done and uh with money we do have left 20 23 000 I know will help but it isn't that large amount but it does affect the families that just just my opinion and uh you remember our call for vote all in favor say aye aye aye opposed aye so we have a three or one vote motion case and let me see where we're at that brings us to reports and correspondence go back and figure out if we're going to do anything with this **[2:40:44] Mayor Jim Michalski:** MnDOT Grant thing wasn't that on Oh I thought we were holding off we'll wait until next month on that I think gives you guys a chance to look at the debt and uh we should bring forward the information on all three roads you know there's three parts of it Kenwood Third Street and also Earl Allen's drive we should have all that information in front of us okay that's fine I'll notify the county that we are not making the decision this month and the in the state we have time as far as they're concerned the problem is with the county because they have to sign somebody or it has to be in their **[2:41:31] Mayor Jim Michalski:** program for the year and I'm going to tell them we're just not ready yet we have major decisions that's fine I'm not sure if we were done with it when we left it earlier personally I'd kind of like to wait to see what happens with the arena because um you know that's a big huge well it's up to the council because we do have till July the problem is the longer you get into there when you try to do a bid in July more expensive far more expensive than if you do it now we will know though hopefully we'll know in March or April but you can go for bids right away in April but even then they **[2:42:17] Mayor Jim Michalski:** probably will be well let's just say a lot of them will have their work maybe planned already by then it wouldn't hurt to look at them in in January we could ask for bids doesn't mean we have to do it nor do we have to take the money you know the matching if and it gives you a chance to look at what Nick talked about tonight the debt and when how much and uh hopefully we can come to agreement we're bouncing all that any other questions on that thank you reports Chris Peterson small cities **[2:43:05] Mayor Jim Michalski:** development Grant we have that Gene that is Page it is a handle okay well this individual is not within the designated area for that small City development grant money First Street was designated as the boundary and he has the old funeral home um that is just on the west side of First Street and I think we all know the shape of the building it could use the money his only recourse is if if there's money left over **[2:43:51] Mayor Jim Michalski:** it could be used if the small City development program agrees to allow him to lose it it's not our choice it is in this kind of the state's hand **[2:44:19] Mayor Jim Michalski:** and there's I think there's a lot of time yet this program is going to go on for quite a while and uh even if we don't have results with the first telecon the new city administrator could definitely get involved too at a certain point I don't think he's looking for any more action other than we can inform him that we can attempt this is kind of informational from the individual to us Canadian board meeting minutes Moose Lake active living Coalition meetings are enclosed and did we get the fire district yeah we **[2:46:36] Mayor Jim Michalski:** did get the fire district I stole your copy well you did thanks a lot I think the fire runners in there I usually like to go over them real quick for November there's 43 calls 31 medicals two calls to a building fire one was a weak candle four dispatches were canceled two motor vehicle with injuries two Motor Vehicles without injuries one false alarm and a smoke or odor and a house there was one total of 43 23 in the city mostly 10 in Windermere and nine in the Moose Lake Township run out of area to Barnum was canceled **[2:47:24] Mayor Jim Michalski:** so they had a very busy month also thanks Chief and it was passing on to all the fine good job the announcements number eight let's see regular Moose Lake City Council and organization meeting we have organization meeting first and we should do that each year first thing in January January 13th at 6 30 pm will open it there's an organization meeting close it and then we'll open again as a regular Moose Lake City Council continuation truth and Taxation meeting 6 pm city council chamber December 16th at 6 **[2:48:13] Mayor Jim Michalski:** PM if needed and I don't think we need that now so that can be crossed out Life Commission Wednesday December 16th floor plan Moose Lake conference room real estate housing a new Development Authority board Monday December 14th 11 A.M at the Hillside Manor office fire district January 12 6 30 p.m Emergency Response Center Moose Lake Parkway Monday January 11 6 30 p.m at uh right here at the chamber at the building here Library board meeting Thursday December 17th 4 30 PM City conference room Moose **[2:49:00] Mayor Jim Michalski:** Lake technology committee Thursday January 7th 10 a.m at the city conference room it's probably the fourth because it should be the first Monday of the month absolutely we'll check that right now did you check it Jim I didn't check though Chris I know it's I believe January 4th it's actually correction to do that Mark vossey no Dave David Thomas some good footsteps too I think I don't think that was Gene that was Ted that did that error Maybe **[2:49:47] Mayor Jim Michalski:** do you have motion to adjourn so moved second one second all in favor thank you come on