Here is the transcribed townhall meeting with speaker names added based on the context and provided list of officials. *** **[00:00] [Intro Music]**: Plows with flashing lights Backing up a two lane row They take one last lap around That sun up high goes down And then it's on, come on girl Kick it on back, Z71 Just tear it up. You kick the dust off. Bar downtown ain't got a line. People way out the door. Ten dollar drinks, it's packed inside. I don't know what they're waiting for. See the beautiful people. We going out where there ain't nobody. We turn this cornfield into a party. Pedal to the floor, born in a pentaphone. Or burning up a back road song. Hark it in with pile out. Baby, watch your stem now. Better have your boots on. Take the dust off. Let's back it on up. Feel your Let's tear it out your butt and kick it dressed up. 61. **[00:45] Mayor Jim Michalski**: I'm going to call a meeting to order. I'd like to welcome everyone to the regular meeting of the Moose Lake City Council for Wednesday, April 11th. And I'd like to start with the Pledge of Allegiance, please. There's no flags out over there. **[01:00] All**: 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 liberty and justice for all. **[01:15] Mayor Jim Michalski**: The next item on the agenda is actually approval of the agenda. We do have one addition. Under number eight, under committee and board meeting minutes, this would be letter C, and this is the fire district. And also above that at the very top, you'll see J police chief contract. Just put a mark there. What we're going to do is go through the agenda and we come to J. We're going to skip that and go down to 7, 8, and 9. Then I've got to close the meeting because we have to discuss the contract. And we'll leave the room so everyone can just stay right here and we'll go up to the conference room. And once we've completed that, we'll come back and open the meeting again. And then we'll do... number k under new business which will be the the open public hearing at six do we have any uh... any other additions or corrections to the agenda hearing none all in motion excuse me motion to approve the agenda **[02:10] Council Member Lou Ohly**: i so move we approve the agenda as written. **[02:15] Mayor Jim Michalski**: Do we have a second? **[02:16] Council Member Douglas Juntunen**: I'll second. **[02:17] Mayor Jim Michalski**: All in favor say aye. **[02:18] All**: Aye. **[02:19] Mayor Jim Michalski**: Opposed? Motion carried. Number two is the consent agenda. We have 2A, the minutes. The first one is March 4th, 2018, City Council regular meeting minutes. And number two is the April 5th, 2018, Local Board of Appeals and Equalization meeting minutes. Any questions discussion? Hearing none, do we have a motion to accept the minutes for the consent agenda? **[02:45] Council Member Douglas Juntunen**: So moved. **[02:46] Mayor Jim Michalski**: Do we have a second? **[02:47] Council Member Kris Huso**: I'll second it. **[02:48] Mayor Jim Michalski**: All in favor say aye. **[02:49] All**: Aye. **[02:50] Mayor Jim Michalski**: Opposed? Motion carried. Under 2B we have the financial reports. Number one is the city accounts payable for April 2018. Number two is the city financial statements for March 2018. And number three is the liquor store profit and loss statement for March 2018. Open for discussion, questions? Any items you want discussed? **[03:15] Council Member Walter Lower III**: If we could pull out, or just a brief discussion on check 043609. It's just the website reimbursement, 7,549.39. I just wanted to know where we're at and how that's going. Or if there's a need for discussion. **[03:30] Mayor Jim Michalski**: How the website is going on? **[03:32] Council Member Walter Lower III**: Well, I mean, as far as our final payment, is it exactly? I thought it was. **[03:35] Ellissa Owens (City Administrator)**: It is our final payment. **[03:36] Council Member Walter Lower III**: Then I don't need it pulled out. Thank you. **[03:38] Mayor Jim Michalski**: Any other questions, discussion on the financial reports? Hearing none, do we have a motion to accept the financial reports? **[03:45] Council Member Lou Ohly**: I so move we accept them as written. **[03:47] Mayor Jim Michalski**: I have a second. **[03:48] Council Member Kris Huso**: Second. **[03:49] Mayor Jim Michalski**: All in favor say aye. **[03:50] All**: Aye. **[03:51] Mayor Jim Michalski**: Opposed? Motion carried. Moving now to number three, public comment. This time we reserve comments from the public on matters not listed on the agenda. Please keep comments to three minutes and come up to the podium. [Pause] Moving on then to number four. Department reports. 4A is a police chief department report for March 11th through April 8th. **[04:20] Kelly Lake (Carlton County Sheriff / Law Enforcement Lead)**: Thank you, Mayor and Council. I spent a lot of this month just getting ready for the implementation of our Zerker RMS system. That's how we do all of our records management, how we pretty much do anything technology related in the squad cars and in the office. The new system has 20 times more features than our old one. So very excited about it. It's a little bit overwhelming. All of our officers countywide have had training this last month and we just went live yesterday. So One hiccup that we found yesterday is our printer for our evidence scanner is not compatible. We did have some money budgeted to purchase a new printer, so that's something I'm gonna need to do, be around $600. We got the new computers installed in our squad cars. They're very nice, state-of-the-art, Toughbook-type, computers you can actually take them out, use them as a camera, video, take statements on them and everything will download right to our new records management system. So a big improvement. Also part of that was a new cradle point which is replacing the old air card system. It's a much more industrial type of an air card. So those are installed and working properly. So just a lot of technology stuff this month. **[05:40] Mayor Jim Michalski**: I see just another part of the report, the number of hours at MSOP and DOC. **[05:45] Kelly Lake**: Yeah, another busy month. Average four hours at MSOP and two hours at DOC. That kind of seems to be average, usually probably a little more than that at the prison with the ECRC committees and whatnot, usually. between four and six a month at each facility. Sometimes more, sometimes less. **[06:05] Mayor Jim Michalski**: Also I see we're, for the month, the number of calls, we're up to 164 total calls through the last month. **[06:12] Kelly Lake**: Yeah, and it'll start getting much busier now with hopefully the weather warming up and people coming into town with campgrounds opening soon and whatnot. definitely a lot busier come May. **[06:25] Mayor Jim Michalski**: Thank you very much. Any questions from the council? **[06:28] Council Member Lou Ohly**: No. Thank you. **[06:30] Mayor Jim Michalski**: Thanks a lot. Moving on to departmental reports, 4B public work superintendent report. **[06:40] Phil Entner (City Superintendent)**: Mr. Mayor, members of the council, we've had a busy month for, we had some snow obviously, But between road patching, some issues with some water service stuff, some water main stuff. Water department, we pumped 4.3 million gallons of drinking water the month of March. That's a double from what January was. There are a lot of people running water, a lot of services running to keep them from freezing. It is nice. It's nicer. It's not spring weather yet outside, but you've got to remember the frost is... eight, nine feet in the ground still. So I mean, there's still water services freezing daily and sewer services freezing daily too. So keeping up on some of that, sewer department, we collected just about 10 million gallons of wastewater. Also sewer department, we got a, with this weather that without, without too much snowmobile going on, we've got a jump on some of our wastewater cleaning, our collection system cleaning. And as of today, I think we're just over 6,000 lineal feet cleaning in the last, two and a half a week, which is just crazy. I mean, it's just, we're flying right along and doing a really good job. Getting a lot of the work done for the summer here. So it's getting a good jump on it. That load of ferric-cloric acid that was discussed at the last meeting was delivered two weeks ago at the ponds. That system's all ready to go for treatment. Street department bottle filling as always. Road salt proposals were turned into MnDOT for the 2018-2019 winter. My proposal is 100 ton of salt is what I believe we'll use. Price for that is $70.15 a ton. That price and that product is purchased through the state bid. That is under our budgeted amount for what we set aside to budget this year. Our actual for 2017, 2018 was 105 ton. and our proposed was 115 ton. So we're right in the game. So we're doing pretty good. We did have some equipment breakdowns as far as trucks. The Jadier had some issues there, but nothing major. Everything's back on its wheels and rolling and moving right along. So we're busy as always and running in a bunch of different directions all the time, and nobody's ever around because we're spread pretty thin. But we're getting it done. Any questions? **[09:20] Mayor Jim Michalski**: Waterline breaks means we have still just one? **[09:22] Phil Entner**: We have one right now, yep, that is temporarily controlled just because of the frost depths and the costs of excavating that much frost to fix the break. Obviously, that cost would be at least half if we wait another month or so to fix it. And it's not causing any damage or any health concerns or any safety concerns for anybody. So we're just going to leave it for right now and just let it go. It's pretty much the cheapest way to go about this for right now. **[10:00] Mayor Jim Michalski**: Thank you. Moving on to the technology and library report. The report's in your packet, page 40. You want to talk? Heck yeah, come up. **[10:15] Steve (Librarian/Tech)**: Good afternoon, council. **[10:17] Mayor Jim Michalski**: Good afternoon. **[10:18] Steve (Librarian/Tech)**: The server update that we did a couple weeks ago with the IP addresses is finally complete. We're going to be installing a new firewall next week, Wednesday. So we're going to have some downtime of internet and phone services, but I will let the city know that. We're hoping to keep that to an hour. It could be a little bit longer if there's issues. There's a new system that went in at the arena called Live Barn. Gael is going to be getting trained on that here soon. It'll be ready for next season, but it's an automated camera system that works like a subscription like Netflix and so anyone who wants to pay in a monthly subscription can log in and see any arena that has live barn which includes quite a few in Minnesota so when the team travels they could watch that and also watch practice if they allow that. So that's pretty cool. That was at no cost to the city. Passwords have been installed at the Wi-Fi at City Hall and Senior Dining. Harlan has said there's been some downloading on the city network. That shouldn't have been, so we took care of that. It also helped improve speeds at the city and also security. Our phone system's been working great for the last two months. No issues that we've been aware of. Security cameras, Harlan actually got the intersection camera fixed yesterday, so it is working today. And the cameras at the liquor store will be installed May 3rd. Harlan has said that he's got that connection working. We're gonna verify that shortly. So we only have one year left on our lease after this year on the cameras, and then they'll be fully purchased. The website was up from last year, and then social media, excuse me, last month, social media engagement is probably five times what it is listed here because of the meeting tonight, so that's exciting. And then as Councilor had said, we are done paying for the design portion of the website, so all we'll have is just maintenance support from now on. We're still adding new content weekly to Channel 7 and 18. Thank you to Rory for that. He's been able to get into the school and get those done. Our annual report was accepted by the Department of Education. It's not fully approved. That'll take a couple months yet, but I'll have a summary for you next month of the activities from last year. And then I also am requesting to attend the Association of Small and Rural Libraries Conference in September again this year. It's in Illinois. So I have the budget sheet and all the other information for you. So if you have any questions on that. **[12:50] Council Member Douglas Juntunen**: I do. last year you said you attended and we did approve it what did you learn last year and how did you implement that into your job and how did that benefit the city? **[13:00] Steve (Librarian/Tech)**: Yeah, last year I actually presented two sessions at the conference so I did miss a couple, but what came out of that was a lot of good contacts around the country. I was able to provide a lot of libraries with my PowerPoint that I use for training for technology, as well as a 3D printer policy, hotspot policy. So I was able to share what our library's doing, and that was to over 30 different libraries, so that's good. I was able to get another grant to expand the smart technology program, which we're still in the middle of. I'll have that rolled out here in a couple months. And also it's the only small and rural conference that focuses on small libraries in rural areas. Most of the conferences are like Minnesota Library Association or American Library Association, and that focuses on academic libraries and public and schools, so. **[14:00] Mayor Jim Michalski**: Does that have a date that it has to be in by? **[14:02] Steve (Librarian/Tech)**: The early bird just opened last week. Already the conference hotel was sold out, so they're starting to back up. And so that's kind of why I was doing that now, because it might fill up. **[14:15] Council Member Douglas Juntunen**: To me, I wish you would have brought it forward last month, because it's good to get a month to... **[14:20] Steve (Librarian/Tech)**: It is. They didn't give us the price of the registration until two weeks ago they opened it up. **[14:25] Council Member Douglas Juntunen**: Is the council a month to think about it or consider? And you still can. I mean, it might just be a different cost. **[14:30] Ellissa Owens (City Administrator)**: Mayor, if I could just add, the library board did get a presentation on the outcome of of last year's event and what we're learning of libraries are changing dramatically throughout the country because of technology and there is a benefit in this so we stay up and educated on which directions we need to go with our library to make it more friendly for the public, user friendly. **[14:50] Mayor Jim Michalski**: I have a question. You have, you received a scholarship from ALS for the registration? **[14:55] Steve (Librarian/Tech)**: Yes. **[14:56] Mayor Jim Michalski**: Down here also you say you'll be getting a scholarship for travel reimbursement? **[15:00] Steve (Librarian/Tech)**: For the conference registration. **[15:01] Mayor Jim Michalski**: Oh, so that's just for the, okay. Up to the council, if you want more time to think about it another month and bring it forward as another agenda item, End or discussion motion. It's in the council's hands. **[15:15] Council Member Lou Ohly**: I am the library board, you know, proved this. They're very much for this education. So I so move that we authorize our head librarian to go to this conference. **[15:25] Mayor Jim Michalski**: We have a motion. Do we have a second? **[15:27] Council Member Walter Lower III**: I'll second that. **[15:28] Mayor Jim Michalski**: Open for discussion. Any members? **[15:30] Council Member Walter Lower III**: Well, I think he did a nice job just with short notice having numerous things to talk about that has benefited the city and what he's learned from the conference. And I think that's a small price to pay. Thank you. **[15:45] Council Member Douglas Juntunen**: To me, I would prefer that we waited a month, but the motion is made in a second. Question the need for out-of-state travel. That's just my own opinion. And hearing anything from the administrator? **[16:00] Ellissa Owens (City Administrator)**: Other than we have enough in the budget, the library board reviewed it. No, I think it's worthwhile. **[16:05] Mayor Jim Michalski**: Any other comments from the council? All in favor say aye. **[16:08] All (except Juntunen)**: Aye. **[16:09] Mayor Jim Michalski**: Opposed? **[16:10] Council Member Douglas Juntunen**: I'm gonna oppose this just because I think I need to, I would rather have the time. **[16:15] Mayor Jim Michalski**: Motion carried. Thank you, Steve. Any other questions? **[16:18] Steve (Librarian/Tech)**: That's all I have. Thank you. **[16:20] Mayor Jim Michalski**: for Department of Reports, City Engineer. **[16:22] Ellissa Owens (City Administrator)**: Mr. Mayor, do you want to introduce our new... Yeah, Matt Bolf is from SEH, and he can introduce himself, but this is the new city engineer. He came down yesterday and met with Phil, myself, the mayor, for quite a while and took a tour, but why don't you take it from there? **[16:40] Matt Bolf (SEH City Engineer)**: Thank you, Ellissa. Thank you, Mayor and Councilors. Again, Matt Bolf with SEH and thank you for the opportunity to work with you. Just to give you a little bit of background about myself, I've been with SEH in our Duluth office for 18 years. I manage our civil group up there. Work on a wide variety of projects, but I also act as city engineer for the city of Proctor and the city of Tower. So whether that's good or bad, I have a past working relationship with Tim over here. On a personal level, I am somewhat from the area, I'm a graduate of Proctor High School. I currently live in Hermantown, have two little kids in the Hermantown School, so I don't plan on going anywhere anytime soon. As far as interactions with the council, for our meeting yesterday, we've kind of decided that we're gonna try to have a monthly staff meeting that I will be attending with Tim and other department heads. As a result of those meetings, I'll create an agenda and minutes from each meeting, and those minutes will be included in your council packets every month. And then as the need arises, I will actually be here at the council meetings, and that'll be kind of at the administrator's discretion or, of course, the mayor of council if you request that. So again, I look forward to working here. Thanks for bringing us on board, and any questions you might have for me. **[18:10] Mayor Jim Michalski**: welcome all right thank you thank you Matt moving on to 4e Chamber of Commerce updates. **[18:20] Chamber Representative**: Council thank you I apologize if I'm gravelly suffering from a bit of a cold which I think three-quarters of the population is right now but Just some updates on activities with the chamber. I want to go over, we had our ice bocce, I apologize for not being here for the last couple of months, but the ice bocce event that we had in February, if you didn't get a chance to go down there, it really was a lot of fun. That was probably one of the best new events that we've had. I know Don was there. I mean, we just really had a ball and people really, really liked it. We were able to donate about $1,200 to the area post-proms, which gives some relief to the area businesses because we all get requests from several different organizations. So our hope is that we can alleviate a little bit of that. It is definitely going to be something that we will do again. There were no snags. There wasn't anything as far as location. Everybody thought the location was perfect. And thank you to the city for allowing us to have that there. But look for that to be now an annual event that will happen probably that same weekend in between or the weekend right before Super Bowl. Another thing that we did yesterday per our strategic plan, if you remember, we did give you that strategic plan. And one thing that we wanted to do was to have an area leaders meeting where we're starting to bring together some of the communities and see if we can't do some sharing of resources for the different events that happen. And at least from a chamber perspective, what can we do to help the area? Because when we all do good, we all do good. And so if perhaps there's an event in Willow River, it may benefit Moose Lake for traffic. And if there's something in Barnum, again, it may, you know, it it could benefit all of us so we had that meeting last night um well it was the first one we didn't get all of the area communities together but we did get willow river and sturgeon lake um and the consensus from that meeting was it was very valuable and worth all their time and we did decide to have it again this fall we did get apologies from a cup from barnum and kettle river that they just were not able to make it if you remember the first one was cancelled because of a snowstorm So what we learned, we just really went over what the different activities are that are in each community that we maybe all don't know about. Can some communities piggyback from another community's event? As an example, we talked about the fly-in breakfast that happens here in June that primarily encompasses the morning. Could one of the other communities maybe have something in the afternoon and then capture that traffic that comes to town for that that could maybe benefit them or even have Moose Lake have something for that afternoon? So I think it was really good constructive talks and we're excited about having that again this fall. So we haven't set a date for that yet, but we would invite anyone of the council to come to that meeting also. We thought it was very valuable. things that are coming up April 21st in just next weekend we have our business expo which we've already said more tables for this year than what we did last year that happens down at the arena it's an excellent event for exposure for businesses in the area and we have businesses that come from Cloquet and all the way up from Hinkley so it's expanding and getting bigger and bigger and does draw quite a crowd we're a little concerned with cold weather this year so but we'll handle with whatever we And one more, the other thing that I wanted to bring up is that at our meeting tomorrow, we're going to be asking the chamber for ideas for themes for 4th of July. So I would extend that to the council. If anybody has any ideas for a theme for the 4th of July, please feel free to let us know or give us your ideas. Would you say there's anything else, Louis? The Moose Run is coming up on Saturday, May 5th. **[22:45] Mayor Jim Michalski**: Questions, concerns from the council? How many tables do you have for the expo? **[22:50] Chamber Representative**: So last year we had 52 and so far we're at 60 for this year. So we have room for much more. We just tighten the quarters and over the years we hope for this to expand and grow. But it's very valuable for the businesses that attend. **[23:05] Mayor Jim Michalski**: Okay, thank you. Thank you for your hard work. Moving on to number five, previously discussed business. This is resolution 18.04.01, election initiative for November 6, 2018 election. This is just the same thing that we talked about at the last meeting. I talked with the county auditor who said we needed to have a resolution. So same language, same everything, but the resolution would need to be approved. **[23:30] Council Member Lou Ohly**: I'll make a motion to approve resolution 18-04-01. **[23:35] Mayor Jim Michalski**: Do I have a second? **[23:37] Council Member Kris Huso**: Second. **[23:38] Mayor Jim Michalski**: I'm just going to read it for public's knowledge. The resolution placing the election initiatives concerning liquor on the ballot for the November 6, 2018 election, and it states, be resolved by the City Council of the City of Moose Lake, County of Carlton, State of Minnesota, the election initiative be added to the November 6, 2018 ballot as follows. Sunday liquor, shall the city council be allowed to issue on sale licenses to the municipal bar, restaurants, clubs, and hotels for the sale of intoxicating liquor at retail on Sundays? And that's a yes or no. So we have a motion and a second. Any further questions, discussion? All in favor, say aye. **[24:15] All**: Aye. **[24:16] Mayor Jim Michalski**: The motion carried. Moving on to number six, new business. 6A Mercy Hospital annual report. Thanks, John, for being here tonight. Afternoon, I should say. Appreciate it. **[24:30] John (City Hospital Representative)**: Do you still have the statement of revenue and expenses in the packet? Okay. and I'll try to keep this short. I know you guys got a busy evening in front of you, so I'll pare down my comments here. But I completed my first year on the board representing the city of Moose Lake, and I'm just gonna say personally, it was outstanding. I really enjoyed becoming part of the board. And those of you not familiar with my background, I come from the healthcare industry and the revenue cycle, which I thought gave me a great background coming in. Well, I realize there's a lot to learn. very dynamic field right now with healthcare and the various federal level, whatever policies are going on. So I really appreciate just taking your observing, learning how the board functions, all the issues we're facing. In that said, I think we're making positive changes at Mercy. We had a positive bottom line of 1.5% in this last fiscal year, 16 to 17. and that's despite the unexpected retirement of the GYN surgeon. And I'll get into that a little bit. But the dollars from the 1.5% are used primarily for investment in equipment for patient care to maintain competitive wages for our employees and to develop new services for the communities we serve. We take our responsibility to provide great healthcare services to our communities very seriously, which is why we have completed a baby-friendly designation, developed an interventional pain management service, and increased our rehab services, especially children, to name a few. I'll get into the baby-friendly designation and the pain management a little bit later. But first, getting back to the unexpected retirement and the impact of from the GYN surgeon. And that's significant because it was last six months of the fiscal year. And what that meant, it shorted Mercy about $130,000 per month. So gross revenue is $780,000 for the second half of the fiscal year. And that would have brought in an additional $445,000 to the bottom line. So when you're looking at the actual bottom line of $543,000, Had we not lost that, we would have been right on our target of $950,000. So despite that happening, we still had a positive bottom line for the last fiscal year. And as you can see on the revenue expenses, I won't go into too much detail, but surgery and radiology are by far the two biggest areas of gross revenue, and then wages is over half of the expenses for the hospital. And if you're a homeowner like me in the city, probably the biggest question you have is regarding the Mercy Tax Levy. I touched base a little bit on this last year. Little update on here, the tax dollars collected were just shy of a half a million dollars. It was $498,781. This is considered non-operating income, so therefore it's not included on the income statement for the annual reports as they're only reporting operations revenue. When evaluating the tax levy, this is again what I covered last year, the board is using industry standards as guidance which are consistent with the hospital's financial performance back in 1999 when the last time the tax levy was discontinued. Just a quick recap, the standards are operating margin, capitalization, debt coverage ratio, and days of cash on hand. So operating margin, they want to be at 2%. for three consecutive years, capitalization ratio, excuse me, capitalization at .55, debt coverage ratio at 2.4, 12-month average, and days cash on hand at 150 days average for 12 months minus the already committed dollars. So where is mercy at this point if you go back three fiscal years to fiscal year 13, 14, and the actuals to 16, 17? Operating margin in 13-14 was negative 4.2%. Actual fiscal year 2016-17 is negative 0.4%. Capitalization was at 0.45, now it's up to 0.69. Debt coverage ratio is at 0.96, that's all the way up to 2.67. And days cash on hand was at 48.2 and it's the end of the fiscal year it's at 108 and actually currently this is as of February I don't have March's numbers yet but there were over 121 days cash on hand and so that means we're meeting two of the four standards and we're really charging hard on the days on cash on hand it just to put that into some perspective one day of cash on hand is roughly equal to $85,000 so that's a turnaround of $5 million. So it's been a significant change from fiscal year 13, 14 to where we're at at the end of 16, 17. And a couple of items I could mention I'll get into in the beginning was interventional pain management service. This was happening just as I was coming on the board last year and speaking to you guys. Over the 40,000 certified registered nurse anesthetists, CRNAs, In the US, only 15 people in the entire nation earned the non-surgical pain management provider credential as of early 2017. And two of Mercy's staff have that status. So two out of 15 people in the country are here at Mercy. This is for patients coming to Mercy for pain management. This means they can be assured of receiving the highest standard of care. The pain management clinic treats multiple sources of acute chronic pain. Majority of the pain treated and procedures performed at the clinic are related to neck and back pain. Our Mercy also provides services for headaches, migraine pain, and any other, or many other pain conditions. And the last item I really want to touch on, probably going to hit more thoroughly than the rest of it, is the Baby Friendly designation. This is a very prestigious award, and I'd be remiss if I in touch on the Mercy Hospital Birthing Center. It was recently renamed the Rhonda Kay Skelton Birthing Center with help of the Mercy Foundation making that happen. As many of you know, Rhonda was a manager of the OB department and unexpectedly passed away over a year ago. She will be lovingly remembered by all who knew her and by the life she's touched. So the Rhonda Kay Skelton Birthing Center at Mercy Hospital has achieved this prestigious international recognition as a baby-friendly birth facility by Baby-Friendly USA. I won't go into all the details, but Mercy is one of only two critical access hospitals in the state of Minnesota with this designation, and there's only 13 in the entire state with this designation. So... This goes back as a labor of love for Rhonda and Mercy is really proud of Rhonda services and this started a long time ago. So we're really proud and they did it in honor. They could have stopped, but they kept doing it in Rhonda's honor. So that's something I'm really proud of that department in particular, the way they've picked up the pieces and carried across the goal line. for lack of a better analogy. So if you have any questions. **[31:30] Council Member Lou Ohly**: I just have one mayor. Just make sure you pass on thanks to everyone there for the outstanding service they give. We're so fortunate to have this facility here and we do appreciate it. So I just have one question on that retirement. So it's a one time lump sum payout for a person that retires? **[31:45] John (City Hospital Representative)**: No, for that We currently don't have a GYN surgeon, so he retired unexpectedly. We didn't expect that to happen. And so that's $130,000 in revenue that we budgeted for that wasn't coming in for the last six months. And it's not in the budget for this fiscal year. They're currently doing a search to get a GYN surgeon in-house, but they don't fall off of trees. It might take a while to find a replacement. **[32:10] Council Member Douglas Juntunen**: Okay. I want to pass on something to, I had a family member in Mercy for about six weeks and the care was just excellent. The care for not only the patient but the family and all we went through during that period was just fantastic and local right here in town. And please pass that on. **[32:25] John (City Hospital Representative)**: Yes, definitely. Thank you. **[32:28] Mayor Jim Michalski**: I just had one question. Sure. Did you? Just thank you. Yes, thank you. I know that a couple of years ago we talked about the levy, it was supposed to be a one or two year levy and you brought that up. And it seems like you're making great strides in getting to where the levy might not be needed. Is there a point when the levy's not going to be looked at as needed? You said it was 90 something when it was discontinued? **[32:50] John (City Hospital Representative)**: Yeah, 1999. And these are guidelines, those four standards that I mentioned, and I can go into more detail after the meeting too, if you would like. That doesn't necessarily mean we have to meet all those goals to discontinue the levy. It's a year by year vote by the board. So it's something we evaluate every year. Like I said, these are just the standards that were in place, similar to 1999, the last time they discontinued the levy. So I think come September, October, we'll be looking at this again. **[33:20] Mayor Jim Michalski**: Thank you. Thank you very much. Moving on to 6B under new business, gas franchise fee. And I think we're on page 45. **[33:30] Ellissa Owens (City Administrator)**: I included a memo and an entire packet of information for the council's review. I'm not looking for any sort of decision tonight unless you don't want me to pursue it any further, in which case... that decision could be made. The entire kind of point of this is to address two major issues that have been ongoing forever, which is the city is 70% tax exempt, and also we have road and utility issues within Moose Lake that are in urgent need of repair. We were able to get the sales tax passed within the last year, which is a dedicated funding source now for roads and utility improvements. That is a huge step forward. This gas franchise fee would, the way that it is proposed in your packet, would ride along with that. So it would be restricted for roads and utility improvements so that we could continue trying to address that need. The advantage of the sales tax, the advantage of the franchise fee is that instead of just 30% of Moose Lake's population paying for things, it's 100% of everybody in the city of Moose Lake. It's a way to keep the revenue spread out across all users. So instead, I think there's a calculation at the bottom here that talks about if we were to enact this franchise fee, what the same impact would be for taxes. So I think for property taxes, if we were to do this, it would be like $90 a per year just in property taxes, whereas the franchise fee would be $30. So it's about a $60 difference because you're spreading it out over all of the users rather than just 30%. It's a lot of information. There's certainly a lot of communities that have gas franchise fees. We currently have an electric franchise fee. That franchise fee does not have any restrictions on the funding use. We could look at doing something like that. I like the idea of having the money be restricted so that the public knows exactly what the use of it is for and it to address specific needs that I think the public would agree with. If we were to look at passing this, kind of how it works is it's a city ordinance. So state statute allows any city to set one of these up. City ordinances create the franchise fee. So we would need a first reading, a second reading, and then it would take 90 days for Minnesota Energy to implement that fee. On the second page, which is page 46, I've put together one example of how this franchise fee could work. You can come up with. infinite number of ways that this works from flat fees to just usage fees to the way that I've done it is both and the reason that I did a flat fee and a usage fee is so that the residential customers have a very very very low impact but large users would have a larger impact so that basically we are capturing that's 70% that is tax exempt. Those are mostly the large users that this would be addressing. If we were to look at doing this, my suggestion would be that we set up meetings with the state, that we set up meetings with the hospital, with the school, go over some of this information, give them time to present information their argument basically against this, which, I mean, it is a fee, so I'm sure that they're not gonna be excited about it. Page 48 is information from the League of Minnesota Cities about gas and electric utility franchising. Like I said, we currently have an electric utility franchising. This is basically set up the same way same impact. Page 51 is an article. This is ways that communities are diversifying their revenue. Later on in your packet, there's a house file that is discussing lowering LGA. So whether it's property taxes, LGA, franchise fees, whatever the case might be, communities are looking at ways of diversifying the revenues that are coming in so that there's not a huge impact when one thing lowers or one increases, it's easier to stay moving forward. Page 52, those are the customers with Minnesota Energy, which would be our gas franchise. Those are the communities with Minnesota Energy that currently have a franchise fee. I talked with our government representative from Minnesota Energy. Bemidji was very, very, very much the same reason that I'm talking about putting the franchise fee in. They have a huge portion of their tax capacity is non-taxable. So when they looked at setting this up, theirs was by a percentage of income or a percentage of the bill, basically, that is quite a bit higher than what we're proposing, but it's for the same reason. They're basically trying to find ways to be more diverse than just property taxes. The way that I have it set up is... based off of Ortonville and Staples. Both of theirs have that .013 cents per therm or per 100 cubic feet of gas, but then also that meter charge as well. The next couple pages, pages 53 and 54, these are franchise fees that are set up down in the cities with Excel. Just to give you an example, they go from The flat rate that I have is $1.50 per month. The flat rate on here, there's one for $750 a month. There's one for $800 a month. So you go from anywhere from no flat fee to $800 a month. There are any number of ways at creating these. The last couple pages here are just Minnesota Energy's website. document that they have on franchise fees and how they've all been set up these are the detail of all of the communities that have set them up I think that this is a good way to address a need that we have in our community I know that it's another fee I know that however if we're going to start moving forward on road projects, if we're going to take a look at utility improvements, the money has to come from somewhere. Open it up for questions by the council. **[40:15] Council Member Kris Huso**: Mr. Mayor, I guess I personally like to maybe wait another year. I think with the water and light with their increase this adding another increase to the residents is just a little out of line I think we need to wait on this is my personal opinion I don't want to ask the residents to for another fee or on their bills are you asking to table this, Kris? Is that what you're... I'd like to hear what the other counselors have to say. **[40:40] Council Member Douglas Juntunen**: Well, I think if we're committed to the people that put us here, it might not be popular, but I, for one, don't want to drive down most of the streets in Moose Lake and blow out a tire and have rim break or people fall on our sidewalks and get hurt. I think that we need to look at it I do agree with the statement that is it another fee? Sure. Could we prorate this? Could we do this in stages? I think we could, but we need to look at the long-term benefits and the long-term needs. Our roads, again, haven't had anything done to them since 1980-something, so we can keep putting it on the back burner. We can do something that might not be as popular, but it's benefiting people long-term. I would say to move ahead and start in that direction because the city needs to. **[41:35] Ellissa Owens (City Administrator)**: I think one of the important factors here that maybe I didn't mention is the actual cost to residents. I mean, that's really what we're talking about is how much are we adding to residence bills time after time after time, whether it's taxes, whether it's electric, whether it's water, whether it's sewer, what are we talking about? So I have in here three different options for monthly meters. Really the one that I'm suggesting is $1.50 per month for a monthly meter, and then that .013 per therm. what you end up with is something that is right around $28, $29 for the year. You're looking at some customers will be, say, between $2 and $3 per month. The way that I have the franchise fee set up right now is hopefully to keep that that impact on the residents as low as humanly possible because they are the 30% that are paying the bill for the 100% of our costs. The point of this was not to try and raise fees on residents, actually, it was to try and figure out a way to find some fees that the larger customers use that still use our roads, that still use utilities, that still use those things so that we can address the needs that we have. I understand trying to keep things low for residents and nobody's going to disagree with that. **[42:55] Council Member Douglas Juntunen**: Another thing I'd like to bring up is are we taking any type of action to send any communication from the city of Moose Lake to the state of Minnesota about House Floor Bill 3830, which is cutting our LGA, which is at the very bottom of that letter that you sent from the state about them cutting. Of the LGA with the salesman. Yeah, cutting our LGA. I mean, for years we've had nothing for roads, and we finally do something, and then they say, well, we're going to take even more away from you. I think that we should at least be heard in that and send some type of communication. **[43:30] Ellissa Owens (City Administrator)**: So I have called and spoke with our representative, Representative Sundeen. There's a long list chain communication with all the city administrators for all the communities that have sales tax. There's not a one of them that's happy about it, and they're... while waging our little wars as much as we possibly can. They did come out with another example of how it would impact the communities. It looks like for the first couple years it's the large cities, Duluth, St. Cloud, those kinds of communities. That would be the impact for the first couple years. After that, it starts to phase in a little bit more. It wouldn't be a huge, huge impact like the original email kind of came across, but it would It's the point of it. It's the principle of it. In our case, other communities, it will be painful. But, yes, the way that we fought for the sales tax is the same way that I'm talking here, is that this is a local issue that we have. We are trying to deal with it locally and stop... going down to the legislature asking for local road improvements. Stop going down to the legislature and asking for help over and over and over again. Let's try and resolve some of these issues and have some control over these issues with roads, with utilities. And yes, they in turn thought it was a good idea to cut local government aid because they gave community sales tax. So we will keep fighting against that and yes, we will send many communications to Representative Sundeen. **[45:00] Council Member Lou Ohly**: back to the agenda item um yes i'm there i could have just a couple comments um well we we raised taxes five percent this year and uh mainly it was for infrastructure because we have an aging infrastructure we have to look at our wells very expensive project there where make sure we secure our water supply for the future. Again, our roads, it's very expensive when you change, you know, replace the sewer and the water line and the blacktop road surface itself. Floods. You know, we've learned now that we need to make our roads ditches and we have to have some way to storm sewers to get this water away from these people's homes and businesses. So this is all coming up. This council I'm proud to be on. We don't, let's ignore these problems and push them on to the next generation. This way, this This option that we're looking at here I'm very much in favor of because it's more of a fair tax because it hits everybody. Like you say, 70% of the community doesn't pay our taxes. And this is a much better way to go, I think, and fair because everybody uses that infrastructure. And again, we need to upgrade it and and keep on doing what we're doing. So I'm very much in favor of looking into this and more. **[46:30] Mayor Jim Michalski**: I guess I'll ask then for a consensus from the council. Do we have consensus to continue looking into the gas franchise fee knowing that there's a process that has to go through a number of months? and and uh... knowing that any time doing that the council has the option to table it uh... until later time period that you're more comfortable with i guess that's what i'm asking for direction to give the city administrator. **[46:55] Council Member Douglas Juntunen**: i would like to move forward with that. **[46:57] Council Member Lou Ohly**: i'm in support of looking at it and but at the same time knowing that we can table it. **[47:02] Council Member Kris Huso**: I guess I'm in favor of looking at it. **[47:05] Mayor Jim Michalski**: Okay, we do have consensus to continue looking at that process and you're bringing back information to the council. **[47:10] Ellissa Owens (City Administrator)**: I think what I might do over the next, it might take two months to prepare the ordinance. but even if it's next month, I might get some of this information out ahead of time to the prison, to the hospital, to the school, to maybe some larger users. As a part of this, I received, without the names of the businesses, I received the addresses and the actual usage of every single gas meter in Moose Lake. So at any point, if anybody has any question how much would this impact me, I can tell you exactly based on the way that it is presented here. It might change how we do this fee or if we don't do the fee at all, but I can tell anybody exactly how much the fee would have been in 2017. So we can start having some of those conversations and they can start preparing their thoughts. **[48:00] Mayor Jim Michalski**: You definitely need to contact those larger agencies because, you know, their fiscal years run different. **[48:05] Ellissa Owens (City Administrator)**: Yep, yep. And every step of this is technically public hearing after public hearing. I mean, we do have to have two readings of an ordinance. Every one of those is going to be a public hearing. **[48:15] Mayor Jim Michalski**: We'll have to be aware of the, like, the state facilities, their budgeting starts in July, correct? **[48:20] Ellissa Owens (City Administrator)**: Yep, July 1st. And the hospital is January? No, October. October. So we have probably multiple fiscal years starting, which will affect the major users of gas. So we'll have to be aware of that, make sure they have time to adjust the budget if that ever comes about. And the school, I'm not sure, I think theirs is July. they start July 1st their budget year. I can see, so there'll be a process looking down. Just a real quick question again. What was the average for a resident, again, you said about with a fee for the meter and the usage about $3 a month? **[48:55] Ellissa Owens (City Administrator)**: A little under, a little under $3 a month. Maybe between $2.50 and $3 a month. 30 bucks a year, something like that. A little under $30 for the whole year, yeah. **[49:10] Mayor Jim Michalski**: Very good, moving on to 6C, lift station cleaning estimate. We budgeted to do this, we actually budgeted to do it twice, but this is the first round. **[49:20] Phil Entner (City Superintendent)**: Yes. Yes, so this is the estimate for cleaning the lift stations. What page are you on? 61, sorry. Are you looking for a motion? Yep. The total amount is 4,800? 600? 600? Yeah. 2,600 and this is for seven lift stations. Correct. **[49:40] Council Member Lou Ohly**: I'll make a motion we approve the invoice or the amount of 4,600 for the cleaning of the seven lift stations. **[49:48] Mayor Jim Michalski**: Do I have a second? **[49:50] Council Member Kris Huso**: I'll second it. **[49:51] Mayor Jim Michalski**: Any questions, discussion? Yes. **[49:53] Council Member Kris Huso**: Yes, sir. Phil, can you tell me when the last time we compared rates and is this the only person or company that does this? **[50:00] Phil Entner**: This is the only one we've used in the past. I did reach out to three other people. I think it's responsible. All right, thank you. **[50:10] Mayor Jim Michalski**: Further questions? All in favor say aye. **[50:12] All**: Aye. **[50:13] Mayor Jim Michalski**: Opposed? Motion carried. 6D resolution 18.04.02 declaring surplus property. The Public Works superintendent would like to sell the 1966 Cat 12 grader. Doesn't go to the historical society? That is a 1966. It still runs? **[50:35] Phil Entner**: We don't know. Oh, kind of. It was used a year ago, or almost a little over a year ago, two years ago. **[50:40] Council Member Douglas Juntunen**: So I so move that we approve that resolution 1804-02. **[50:45] Mayor Jim Michalski**: Do I have a second? **[50:46] Council Member Walter Lower III**: Second. **[50:47] Mayor Jim Michalski**: Any discussions, questions? All in favor say aye. **[50:50] All**: Aye. **[50:51] Mayor Jim Michalski**: Opposed? Motion carried. **[50:53] Phil Entner**: And for the record, that one will be going up to the CAT dealership for consignment rather than going out for bids on all that stuff. We'll just... Yeah. I just want to say thank you. I think that's very forward thinking on whoever made that decision. I mean, it's outside the box thinking, so nice work. I do have one question. Yes. What is the cost to get this piece of machinery up to the cat? It'll probably stay on site and get sold on site. Okay. And then they'll come and get me to add a graph. Okay. **[51:30] Mayor Jim Michalski**: Any other questions? All in favor say aye. **[51:32] All**: Aye. **[51:33] Mayor Jim Michalski**: Opposed? Motion carried. Moving on to new business 6E resolution 18.04.03 declaring surplus property. This one's for the 1976 Ford F-750 grain truck. This one, it just sits there up in the woods. That's almost a collector. Council? **[52:00] Council Member Douglas Juntunen**: Again, I guess I'll approve resolution 180403 for the sale of the 1976 Ford Green Truck. **[52:10] Mayor Jim Michalski**: Second, sir. Did I hear a second? **[52:12] Council Member Walter Lower III**: Yes, sir. **[52:13] Mayor Jim Michalski**: Any other questions, discussion? So this is just going to go out for public bid? **[52:17] Phil Entner**: This one will go to the due bid, yeah. **[52:20] Mayor Jim Michalski**: Okay. Lots for bid, sorry. Lots for bid. All in favor say aye. **[52:25] All**: Aye. **[52:26] Mayor Jim Michalski**: Opposed? Motion carried. New Business 6F sewer cleaning hose estimate Did we ever talk about what this one was for? **[52:35] Ellissa Owens (City Administrator)**: So we have a jetter that can do sewer cleaning. Say you're in the middle of a road, it's really not a big deal. You can drive the trailer right there. When it's back in a right of way and you need to take the skid steer back there, there's an entire different machine that we pay a lot of money to have somebody else come in and clean. They found a reel and a bunch of other equipment online and are manufacturing their own piece of equipment but the one thing that they can't make is the hose. So this is for the hose that would go with the piece of equipment that they're building in the shop. **[53:10] Phil Entner**: It's done, okay. How many, did you call a couple people for this one too? Okay, and only one gave us a quote, so. For $250. How much does it cost to have? No. No. No, it's plus. That's the labor. How much does it cost to have them come out and do one cleaning with? With the using bed? Yep. Minimum $1,850. So that's one time, and this is less than that just to get the parts going. I know it's more than that, but long-term, this just makes sense. All right. Counsel? Wyatt. **[54:00] Council Member Walter Lower III**: Make a motion to pay the bill. **[54:02] Mayor Jim Michalski**: Do you have a second? **[54:03] Council Member Douglas Juntunen**: Second. **[54:04] Mayor Jim Michalski**: Any questions, discussion? **[54:06] Council Member Walter Lower III**: So just a quick one here. How many couplers do you think? **[54:08] Phil Entner**: None. None. One cellar piece. Okay. So it's just for that $1,710 then is what we're looking at. Okay. Plus one male fitting on each hand. Oh, okay. Fifteen? Yeah. Okay. 1H. Okay, good. **[54:25] Mayor Jim Michalski**: Any other questions, discussion? And then do we have a motion? Excuse me. All in favor say aye. **[54:30] All**: Aye. **[54:31] Mayor Jim Michalski**: Opposed? Motion carried. How long will it take you to complete the job and get it in operation? **[54:35] Phil Entner**: A couple of weeks. Between this and that now. probably won't even be out yet. See where things are going. All we'll get for that old patrol will cover this. **[54:45] Mayor Jim Michalski**: New business 6G, 4th and Birch manhole repair estimates. **[54:50] Phil Entner**: Yeah, sunk into the earth. So we have two bids here. One is from Goebel and that's the low bid. The second one is from Dave Shemaleski. This wasn't one of the newer ones that we tried to pair. This is one of the really old manuals over at the park. **[55:05] Mayor Jim Michalski**: Council, question, discussion, or motion? **[55:10] Council Member Lou Ohly**: I'll make a motion. We accept the low bed for the replacement of the manual. **[55:15] Mayor Jim Michalski**: Do I have a second? **[55:17] Council Member Douglas Juntunen**: Second. **[55:18] Mayor Jim Michalski**: Any other questions, discussion? Hearing none, all in favor say aye. **[55:22] All**: Aye. **[55:23] Mayor Jim Michalski**: Opposed? Motion carried. Moving on to 6H Arbor Day in Moose Lake. **[55:30] Ellissa Owens (City Administrator)**: We are, as of last year, I believe, Tree City USA. As a part of that, we need to have Arbor Day each year. We need to celebrate it kind of with this format of a not a resolution, but kind of a declaration. So this just lays out the date that April 27th, 2018, we will have Arbor Day. It will probably be too cold to plant something, but maybe we could all stand around a tree. **[56:00] Mayor Jim Michalski**: We'd be able to, yeah. Very good. It'd be positive. Do we need a motion? **[56:05] Ellissa Owens (City Administrator)**: We do, because- You can accept the Arbor Day, sure. **[56:08] Mayor Jim Michalski**: Do we have a motion? **[56:10] Council Member Lou Ohly**: So moved. **[56:11] Mayor Jim Michalski**: Do we have a second? **[56:12] Council Member Kris Huso**: Second. **[56:13] Mayor Jim Michalski**: All in favor say aye. **[56:14] All**: Aye. **[56:15] Mayor Jim Michalski**: Opposed? Moving on to 6i, I think we talked a little bit about this. House file 3830 LGA decrease for cities with sales tax. And unbelievably last year we were able to get the sale tax passed probably the first time in the history of the city and the very next year they introduce a house bill to decrease LGA for cities that have a sales tax. So all that effort, which was greatly appreciated, may be effective. Do you have anything else? **[56:45] Ellissa Owens (City Administrator)**: No, we will do everything we can to make sure that that does not pass. **[56:50] Council Member Lou Ohly**: Mayor, just a quick question. doesn't have a senate bill not yet nope just a house file so far so this might just die right there i really hope it does because this is ridiculous thank you. **[57:05] Mayor Jim Michalski**: At this point the next item is a contract so we're going to skip over that and complete the rest of the agenda and we'll close and go up to the conference room and uh... complete that contract work and then come back and continue with the consolidation tax study public hearing with the township. Actually that'll be at six o'clock so there may be a little recess after that. So moving on, I have nothing under reports and correspondence. Moving on to number eight. Committee and Board meeting minutes. 8A, the Moose Lake Water and Light meeting minutes for February 28, 2018. They are in your package. Walter Peterson, is there anything you want to bring to our attention on the water and light? No, nothing. No new efforts? There's a lot in there, actually. So read them. I should ask how is the work going on for the new generator? **[58:10] Jim Pederson (Power Superintendent)**: It's approved to get the work started. The generator and the engineering and architect company is moving ahead of it. So we're going to be hopefully done even sooner than what we need to be to meet our contract with being able to provide power back to the grid and that was part of this big contract deal that we did and so we're going to be we should be okay there we're hoping without any glitches. **[58:35] Council Member Walter Lower III**: so maybe just a quick comment on the rebate for small bulbs like residents or who is it who can actually get a rebate I know there's $10.25, Minnesota Energy $25, Minnesota Power $50, Lake Counter Power $25. Those are rebates? **[58:50] Jim Pederson**: Correct. For any energy-saving type devices, you can, if it's new construction, it's much less. If you're replacing old construction, let's say electric hot water heater or something like that, yep, there's a greater chance for rebate. So they just bring the... The receipt or the bill into the water and light office. And then it's a formula that we have to go by and then we issue the rebate. Okay. **[59:15] Mayor Jim Michalski**: Council, any questions? Mr. Administrator? Hearing none, then we'll move on to committee and board meeting minutes. B, Economic Development Authority meeting minutes for March 14th. Any comment? **[59:30] Ellissa Owens (City Administrator)**: Just that within the next month or two here we'll be bringing forward a new new house rebate program as well as a Demolition and new construction rebate program that will hopefully offer a little bit of incentive to Continue the the construction of of new homes in in Moose Lake just to capture the added value that they're bringing into the community, give that back to them for two years, and then after that period, that added value would go back into the levy. So it's a good start to the committee. I think it's nice to see that the EDA's working on something and moving forward. **[1:00:10] Mayor Jim Michalski**: Very good, thank you. **[1:00:12] Council Member Lou Ohly**: So I had a question, Mayor. We had a grant businesses that let's say along 73 and a few other areas there that were available for those people to upgrade their facilities how are we doing with that is that closed out or yep that program closed out a few months ago we received the what was left over of of our that we submitted to that. **[1:00:35] Ellissa Owens (City Administrator)**: That's that fund 120 that last month the council gave approval to the EDA to have some level of oversight, although they won't have final say. The council still has final say, but those funds are then kind of, they're kind of for the next phase that the EDA would like to work on, which is somewhat of a welcome package for incoming or something like that. It will hopefully entice people to shop locally and kind of reinvest back into the community. **[1:01:05] Council Member Lou Ohly**: Is that something working with the chamber doing? **[1:01:07] Ellissa Owens (City Administrator)**: Yes, that one we are working with. Well, we will be working on. We haven't done anything with it quite yet. Tia sits on the board and she was part of this instrumental in this. Yep. Very good, thank you. **[1:01:20] Mayor Jim Michalski**: The next item was in addition to the agenda. This is 8C, the fire district. We've got the fire district run report for March. We had 37 calls. 32 were medical. We had one motor vehicle, no injuries. A dispatch canceled, there were two. One building fire. A carbon monoxide incident. and how that breaks down the 16 of the 37 calls were in Moose Lake 10 were in the Moose Lake Township 9 in Windermere Township of the Windermere one was cancelled and 8 of them were medical Silver Township we had one out of area one that was Kettle River building fire um cancelled calls there was one fire alarm cancelled one rollover cancelled um If you go down farther, total of March 2018, the number of hours involved are 175 hours. Information on the fire district. Moving on to number nine announcements. Regular Moose Lake City Council meeting will be Wednesday, May 9th at 4 p.m. right here. Moose Lake Water and Light Commission regular meeting Wednesday, April 17th, 3 p.m. And that's at the Water and Light Office. Moose Lake Housing and Redevelopment Authority Board May 14th at 11 a.m. at the Hillside Manor Office. Moose Lake Area Fire District Tuesday, May 8th, 6.30 p.m. Emergency Response Center. Moose Lake Park Board meeting May, that'd be Monday, May 7th, 6.30 p.m. right here. Local, excuse me, library board meeting, May 14th at 1.45 p.m. at the city conference room. Moose Lake Technology Committee, Thursday, May 3rd at 9 a.m. at the city conference room. Any questions on the announcements? **[1:03:30] Ellissa Owens (City Administrator)**: And, Lois, I think we got the dates and times right. When is the next EDA meeting? It's always the second Wednesday of the month at noon. At noon. And I will be adding it to the announcement. It's already written down. And the chamber is now getting, the chamber I believe had the wrong time for the city council meeting, so that's been changed. So that'll be corrected for the next month's meeting. **[1:04:00] Mayor Jim Michalski**: At this time, I have to close the meeting. City Council meeting and the council members who go up to the conference room where we have to review a contract for personnel and we'll come back and if it's before 6 o'clock I'll do a recess because that's the time that we advertised for the public hearing for what we're doing. All in favor say aye. **[1:04:20] All**: Aye. **[1:04:21] Mayor Jim Michalski**: Opposed? Motion carried. Because the public hearing won't start till six o'clock, and we just completed some contract work, that's why we had to close it. So I'm gonna suggest we do a recess till six o'clock so that people that are still coming have time to get here before we start. We need to vote. We need to vote. Okay. Okay, we'll check with that. Hello, okay. Also, concerning the closed portion of the meeting, do we have a motion to accept the contract? **[1:05:00] Council Member Lou Ohly**: So moved. **[1:05:01] Mayor Jim Michalski**: I'll second it. **[1:05:02] Council Member Kris Huso**: I'll second it. **[1:05:03] Mayor Jim Michalski**: All in favor, say aye. **[1:05:04] All**: Aye. **[1:05:05] Mayor Jim Michalski**: Opposed? Motion carried. Recess, motion to recess. A motion to recess till 6 p.m.? **[1:05:10] Council Member Douglas Juntunen**: So moved. **[1:05:11] Mayor Jim Michalski**: Second? **[1:05:12] Council Member Lou Ohly**: I'll second. **[1:05:13] Mayor Jim Michalski**: May I say aye? **[1:05:14] All**: Aye. **[1:05:15] Mayor Jim Michalski**: Opposed? Aye, we're recess till 6 o'clock to the public time of the start of the public hearing. Anybody here? All right. I'm going to party, please. I need a motion to come out of our closed meeting. **[1:05:30] Council Member Douglas Juntunen**: So moved. **[1:05:31] Mayor Jim Michalski**: I'll second it. **[1:05:32] Council Member Lou Ohly**: I'll second it. **[1:05:33] Mayor Jim Michalski**: All in favor, say aye. **[1:05:34] All**: Aye. **[1:05:35] Mayor Jim Michalski**: Opposed? Motion carried. I also need a motion to open the public hearing. **[1:05:40] Council Member Douglas Juntunen**: I so move that we open the public hearing. **[1:05:42] Mayor Jim Michalski**: I'll second. **[1:05:43] Council Member Lou Ohly**: I'll second. **[1:05:44] Mayor Jim Michalski**: All in favor say aye. **[1:05:45] All**: Aye. **[1:05:46] Mayor Jim Michalski**: Opposed? Motion carried. Maybe a few statements before we start. Just a little bit of rules of how we're going to run the meeting because there are so many people present. The first item is we did have a sign-up sheet for those who would like to speak. Want to get closer to the mic, Ted, and try to be louder? Louder? I think it's turned up as high as it can go. If we go any higher, it'll start squealing, and nobody over here can. So we'll just have to speak up as loud as we can. If anyone else wants to speak that has not signed up, where are the sign-up sheets? You want to put... like one maybe on the table there. How about all the hundreds of people in the hall? What do you think about that? We have that presentation will take place tonight. It'll be up to the council after the presentation if they want to take questions from here or else at a later date. Yeah, well, let's all go in. All right, come in. We've got 100 people that want to come in, and we'll sit on the floors if we have to. There you go. That's fine. All right. You got to take some more pictures. Yeah. We could just take the podium out of there and leave the microphone. Yeah, but where are people going to speak from then? No, no, I mean, we could put maybe like a microphone or something even on the table and at least open up some more room. I think it'll be okay. Pack them in. And more people can fit. If anybody wants to come up here, they can sit up here too. Don't be shy. Come way up front. Still room up front. You're never going to get us again. Hey Tim. Hi. Who should have done this at the arena? Who could have? Still, I mean, scooch those chairs closer. Bryce, did you ask the people out if anyone wants to come in? There's still room up front. I appreciate that. Four. Ten. You get more? Five. Ready? I think with that we will start the public hearing and just a few items for everyone present here. We do follow Robert rules so we do follow Robert rules so when somebody is speaking we expect everyone else to have a courtesy to let them complete whatever they're saying. and it goes the council will follow Robert rules also that's our normal way how we run meetings just a few statements the presentation will will happen presently here and this will be the first time that the council has heard this presentation also we have been we were given the report two months ago so the council members individually able to look at and we did give a copy to the township I don't know how many people were able to read it how they pass it out to you or not so for the council as a whole this will be our first presentation also of the information and maybe Ellissa you had a few other things you're on to state. **[1:09:45] Ellissa Owens (City Administrator)**: So I'm not sure what the council will want to do after the presentation. They can decide that. But there are a couple things that I wanted to go over just before we get the presentation going that will hopefully make some of this go a little bit easier. The first is there will be no hostile annexation. There will be no THERE WON'T BE ANYTHING LIKE THAT. NEVER WAS INTENDED? NO. WHEN I FIRST WENT TO THE TOWN BOARD MEETING, THAT'S WHAT I SAID. I MET WITH TED, ONE SUPERVISOR, TOWN CLEAR, THINGS LIKE THAT. ALL OF THAT WAS LAID OUT. THERE WILL BE NO HOSTILE ANNEXATION. THERE'S ACTUALLY NOT BEEN ANY VOTE ON ANNEXATION AT ALL. There's been no decision. There's frankly a million different ways to move forward or not move forward with annexation. The study takes a look at the township as a whole. That does not mean that that's the only way to do it. You can do it parcel by parcel, section. You cannot do it at all. That is absolutely still an option. The only motion that the city council has made is to do study and to have a public hearing. The entire intent was to get people together, which we definitely managed that, was to get people together to discuss if there was a way that we could move forward together or not or any combination of the such. We did want to do a study so that some amount of factual information could be presented and at the very least this way it's frankly unbiased. I didn't put this together, Ted, the mayor, none of the city councilors put this together. Annexation's been discussed between these two communities for 60, 70 years. Nothing's really... come from those murmurs, but small sections have come into the city. But this was the first time that we've really tried to just take a look at what it would mean if the entirety or even a small section came in. The comprehensive plan also included this and has pretty much always included annexation in it. There's been town board members that have sat on that, just township residents, township committee members. I mean, this is not something that should be new. It is new that we are doing a study, but I mean, even the town board has been a part of the city's comprehensive plan that has made multiple mentions of annexation. We do think that it is worth time and worth spending the energy to have this conversation, even if all we get from this is 400 people that say no. That's fine. You know, there are a couple things that I did want to touch on that hopefully will save us from a couple quick questions that are very simple ones. Hunting. Hunting would absolutely be allowed. It would follow DNR or state regulations of no hunting within 500 feet of your house. That's very simple. Running water and sewer mains miles outside of the city. I can't remember the gentleman that came in. Seven miles out of town. That's insane. That's insane. But no, we're not running water mains miles and miles away and making people connect. That's no. Current debt, I've heard current debt and financial issues for the city. financial situation of the city, the easiest way to present it is the state auditor says that you should have 30 to 50 percent of cash reserves. We have just over 50 percent. We're just fine. Most of the debt that the city has is water and sewer debt. The only way that you pay on that debt is if you're a water and sewer user. So even if the entire township came in and you were not connected to water and sewer, you still wouldn't be paying on that debt. Those two things are not reasons for this. Windermere Township. This study doesn't take a look at Windermere Township. We have not talked about Windermere Township since I've been here. I don't know that the council's ever done anything to look at Windermere Township. I understand that there was a news article that mentioned Windermere Township, I think back in 2015. This does not have anything to do with Windermere Township. I think next, the only other things that I'd like to say before we get started, if we continue with the public hearing afterwards, there's a lot of people and it might be worth moving it. Please, let's get through the whole presentation before questions. If you do want to sign up and we go through questions, please do sign up and we'll try to get as many people as we can. I would ask that everybody that comes up to speak or anything like that is respectful and hopefully one at a time. I think some of you probably are already having a hard time hearing us. It's not going to get any easier if more than one person is speaking at a time. With that, I'd like to turn it over to Tammy Omdahl from Northland. **[1:14:40] Mayor Jim Michalski**: Just another minute. Also, we're starting at 6 o'clock, so I'm going to close. If we continue on after the presentation, I'm going to close it at 8 o'clock. Otherwise, you can go on and on and on, and two hours to me is enough. I'd like to have question statements after the presentation held to three minutes, so as many people can speak as possible. Other than that, during the presentation, Council if you have questions you may ask them, but I'm asking everyone else to wait till after the presentation So we can get through it and you're going to hear this the information for the first time as we are So it's just to get through the presentation and is in easy manners we can and As clear as we can get the information out I appreciate that very much The presentation will be done by Tammy Omdahl from Northland Securities. Please go ahead. **[1:15:45] Tammy Omdahl (Northland Securities)**: I'm going to start from the podium. I heard that mic may be better, but out of respect for addressing the council, I'll start here. If it's hard to hear me, you can say something, and I'll try the other mic if that is better. And I understand I have somebody that's going to advance my slides. From here, it sounds pretty loud. Hopefully you can hear me. get started i am tammy umdal from northland securities mayor council members um we were hired to take a look at this analysis i would note up front that the report is based and if you had a chance to read the report which i know the council has had a copy is based on several key and significant assumptions those assumptions will change there may be questions tonight related to those assumptions it was the best information that we had available at the time and the results are based on those assumptions and i will cover that as i go through and if i could have my advancer with respect to what i would like to cover tonight as part of the presentation i want to talk about the report objectives the annexation assumptions that i noted findings and the conclusions there are no recommendations in this report it was simply to look at what would the impact of annexation be given certain assumptions we'll look at financial impacts and then last questions of the mayor and city council with respect to the scope and the focus there were really five areas tax-based subject to annexation and At the top of the meeting, Ellissa mentioned that this study looked at annexation at the direction of the city of the entire township. That was just part of the study. That was not a direction or something that the city council was pursuing. It was meant to give information given that assumption. We looked at overall budgetary impacts, and that was detailed in the report. I'm going to touch on that on a very high level tonight. We looked at the impact on property taxes and we break that down for different property types that would exist within a new boundary of the city. We look at impact on sewer and water users and other financial implications of the annexation. Other areas that I'd like to note. We did not address factors related to statute that cover that if there was, if you were going through this proceeding and there was an administrative law judge, the statutes are very specific as to the conditions and items that you need to cover. That was not the purpose of this report. looked at impact and other or we did not look at impact and other special taxing jurisdictions it was not part of the scope and last we did not look at the analysis of impact and electric utility services as a result of annexation if there would be any impact the annexation area as noted for the purposes of the study it included all property within the township And that included areas with and without municipal utilities. That was estimated at 26 and a half miles of roads, both paved and unpaid, owned by the town. The town, I would note, has received this study. The town in reviewing it, including some of the assumptions, may have comments or other information that was not available to us as part of the study. the annexation area did look at town assets including park facilities and the gravel mine. The report did not factor in any financial implications to the city from the contribution of assets from the town. And that's more of a financial matter. Here I'm not gonna focus on all these numbers. What I am gonna focus on is the bottom line. So within the town, the total tax base, upon looking at taxes payable in 2017 which is the data that we had available to us last November 30.8 million grand total excuse me with land and building 76.5 million and converting that to tax capacity about 763 thousand or 1091 parcels were looked at and again this is based upon tax data for taxes payable in 2017 area that we needed to look at and this is where the city provided some input is the idea of the concept of an urban taxing district if property was annexed into the city and the city identified for what we're calling section areas and so we looked at what the taxable market value in those section areas would be for the two approximately 200 parcels 208 next few slides and this was in the report i'm going to move through this very quickly just geographically shows you on a map what each of those urban taxing districts would be again this was not a recommendation from the city the city we had asked them as part of the study staff to say what areas would you consider for an urban taxing district and these were the parcels and sections that were identified so for the benefit of everyone in the room this was not something that the council had looked at it was simply we needed some assumptions as part of the analysis for the report so section one and we're going to go into the rest of them section two section three and then section four tax base for property located within the city for taxes payable 2017 city total combined taxable market value 68.2 million dollars equating to 856 thousand of tax capacity and about 940 parcels in total and this information going on to the next slide was used to reach the findings and conclusions with respect to debt and capital assets for the purposes of the study based upon publicly available information we were not able to identify that the town has any outstanding debt the town would be able to answer that but for purposes of the analysis it was assumed no outstanding debt for the town the city has the outstanding series 2011 a bonds issued to finance on capital improvements reading was reviewed and really a comment there that there would not be any negative impact potentially a positive impact on the city's bond rating as a result of annexation utility operations as we looked at impact on cut fees and charges noted that it was estimated that 188 town customers with no assumption that new We did make assumption based upon discussion with staff that the impact on operations from annexation would be about one full time position in the city. no change to local government aid. We did speak with the Department of Revenue about this and that there would be no estimated meaningful reduction or increase for that matter in local government aid to the city. The town road aid would be eliminated with annexation. The city would no longer be eligible to receive that as a municipality. There were no other major changes and assumptions with respect to operations. Financial impact, so property taxes. The assumption was made that if there were to be annexation, that the city council would consider the establishment of an urban service district and a rural service district. And what does that mean and why the purpose? The city is able to apply different property tax rates to an urban service district compared to a rural service district. So we made that assumption for the purposes of the analysis. With respect to utility charges, property located within the annexation area will not incur any utility charges was the assumption from the city unless services provided with no plans to expand that service included as part of the analysis. Town present has five properties with water and sewer, so very limited number, and 183 properties with sanitary sewer service, and that would continue. respect to property taxes I'm just briefly going to touch on this because I think it'll be more meaningful to look at an example property so we looked at some history for both the city and the town with respect to tax rates and we needed to estimate what the new tax rate in theory would be after annexation for the city for both its rural taxing district under this concept and and for the urban taxing district. And that was the comparison if we go on to the next chart here. So this looks at four different types of properties. So starting from left to right, the top of the bars represent total city property taxes. So property within the town connected to municipal sewer only, subject to a rural taxing district after annexation, Some change in the estimated property tax. The before assumes no annexation, so just under $1,000, and after annexation, just slightly over $1,000. Property within the town with no municipal utilities, that would be subject to a rural taxing district with annexation. Again, still a tax increase. It would go from an estimated just over 200 to I think it was like 230. The third set of numbers property within the town connected to city utilities and subject to an urban taxing district would see larger increase in its taxes payable to the city compared to the town because it would be receiving urban level services so going from just over a thousand to about just under fifteen hundred dollars given those assumptions the far right and the last one represents property presently within the city and connected to municipal utilities going from for city taxes just over 1600 to closer to that 1500 because of the increase in the tax base as a result so the impact of annexation on property within the township would be an increase whether it was in a rural or an urban taxing district the impact would be the greatest for property presently within the township that would be subject to the urban taxing district rate financial considerations capital improvements we noted that the impact of ongoing costs of maintaining improving town infrastructure that wasn't analyzed as part of that but that would be a consideration for the city utility connections no plans were assumed for the city to extend municipal utilities including the costs and who would bear those costs that was not analyzed there was no analysis impact of new connections Street reconstruction, the use of special assessments would be an option to benefiting properties that was not reviewed as part of this. Intergovernmental revenue, the impact of, as I noted, the loss of LGA has a larger impact on the city budget. And why do we note that? because with the annexation, property in the township would be subject to that if there were to be significant cuts to local government aid in the future, that would have a larger impact on the city's budget with respect to pressure on the tax levy and tax rate. Other fees and charges, just noting we did not go into the specifics of the city and the town's fees and charges. We made some very general assumptions with respect to that. that brings me to the end so we went through the report of Jackson objectives the annexation and assumptions findings and conclusions and then last the final financial impacts noting what it would mean for different property taxpayers with that mayor I finished the presentation and would be happy to take questions from the council. **[1:27:00] Mayor Jim Michalski**: I don't have any questions from the council. Thank you very much. Ellissa, I'll turn this over to you at this point. **[1:27:10] Ellissa Owens (City Administrator)**: I mean, I guess I would ask if we, with this number of people, if we want to continue, do we want to try and move it for another date? I know there's been an awful lot of buildup to this meeting, and I'd like people to be heard, but this is... probably more people than are supposed to be in here. **[1:27:30] Mayor Jim Michalski**: I am absolutely willing to sit and hear from people. So if we want to continue, that part's fine. **[1:27:35] Crowd**: Let's continue, we're all here anyway. **[1:27:40] Mayor Jim Michalski**: And I guess we should say if that's okay with everyone. **[1:27:43] Crowd**: Yep, that's fine. Let's continue if we can. That's fine. **[1:27:45] Mayor Jim Michalski**: Okay, that's fine. Very good. Just remember, the city has made no decision Annexation has never been an agenda item. I've been the mayor for 14 years and we've never had it on the agenda to do an annexation of the township. I just want all of you to know that. But I have heard every single year that I have been mayor that we were going to annex a township. I don't know why that continues to go on year after year. In fact, the first year that I was married, I asked the then city administrator, Mr. Talbot, what's the rumor on annexation? What are you doing? I wanted to get caught up to what was going on. And he said, oh, you'll hear that every year. I've heard it for the past 17. That was in 2005. So he had heard it for years before that also. So it's just a continuous discussion, evidently. the community and I say community because I've never considered I considered it a regional committee community I've never thought of it just as Moose Lake-so this is an issue that evidently has gone on for decades and the study has never been done this is the very first study ever and the reason I pardon I paid taxpayers money to have the study done to annex. **[1:29:15] Mayor Jim Michalski**: This was the city. I asked for it because there's never been a study done, but I keep hearing the rumors, and the rumors are, to me, some are so far off the reality of what an actual study would state. I didn't know what this study would say, and I'm sure none of you did, and I know the council didn't. So this was a city initiative, not a township initiative. Yeah. **[1:29:40] Ellissa Owens (City Administrator)**: I think one of the reasons to that we wanted to take a look at this is annexation over the last number of years has occurred with parcel by parcel by parcel or very small sections and that's fine that very well might continue that way forever but as recently as this past year there's been people coming to the city council meetings looking to connect to water sewer services and it's you're outside of the city-okay now there's another process that you need to go to to attempt to come into the city-that didn't go very well-uh there's two housing platted housing developments that probably i mean they're they're not going to go very much farther if they're not connected to water and sewer which is not going to happen if if they're not in the in the city limits the reason for the study is very simple-it's it's a start to a conversation that's it This is the only bit of factual information that I have heard from a lot of people that have called. I've heard all kinds of rumors about what's going to happen. **[1:30:45] Township Resident**: Where do they get their information about a law judge from the town board then? **[1:30:50] Ellissa Owens (City Administrator)**: I think you should talk to your town board. **[1:30:52] Township Resident**: You started this meeting saying that there would absolutely positively be no... **[1:30:57] Ellissa Owens (City Administrator)**: That is correct. **[1:30:59] Township Resident**: so if the township tonight says no you'll take no further action whatsoever to pursue annexation so there's a couple different ways that it can go I mean the city and the township have worked together on annexation before as I've said they've they've question as a whole are we gonna go to court no you will not pursue it any more actions toward annexation if an individual up and wants to be annexed for whatever reason, which seems to happen every year, that's different. **[1:31:35] Ellissa Owens (City Administrator)**: Yeah. But as a whole, no. No, it's not. We're not saying, no, you would not pursue it. **[1:31:40] Township Resident**: Well, what he is saying is if somebody comes to the city council and says, I would like water and sewer, then yes, we will pursue that. We will not. No, we're not after any type of total annexation. So your answer is no, you would not pursue any more annexation. You could follow. I have no, no, we don't have, there's no agenda item. At the beginning of this is not necessarily a true fact. You would consider hostile takeover annexation. No, I just said no, we're not, that is not what, We're considering. I would not be for any hostile takeover of any township properties. I don't know what about the rest of the council. **[1:32:30] Council Member Kris Huso**: I do not support a hostile. **[1:32:33] Mayor Jim Michalski**: I think at this time because... Well, that 1990 is way before any of us were on the council. None of us. I was in that deal too. You know what happened in the past is in the past and we're not looking at the past. Whatever happened there's so much history that it probably happened in the 70s and the 60s too. I don't know. People are really not trusting government, number one. Number two, you see other towns around. Carlton did the same thing. They did a study. And don't worry about it. Your taxes would only go up a bit. And they did the first year. And then they nailed people after that. And they did go for it. Start off with a study and then it just kind of trips on. And that's what we're afraid of. Right, I understand. I think we'll go back to the process because there's a lot of people that signed up. Steve Aldrin? **[1:33:30] Steve Aldrin (Moose Lake Fire District Chair / Township Chair)**: Aldrin? Yes. just yell and you know just a quick statement we're here to listen but the township person you know it's a it's an information gathering thing for us that this is That's all it was, and it's to give out the presentation. As I said, it's the first time we've really heard this presentation, as you did, the same time we did. Thank you for letting me speak. I'm the chair of the Moose Lake Township, and we just got concerns over this because it's been, like I said, years past, it's been brought up, and now it's dragged up again, so. And gotten many letters against this. I haven't heard anybody say they were for it. **[1:34:25] Mayor Jim Michalski**: For what? **[1:34:27] Steve Aldrin**: For the annexation. Okay. So from the township. Like I said, we got letters, but we'll leave them for the end to be read. **[1:34:35] Mayor Jim Michalski**: You can turn them in to us. This is... We pretty much got the message already. So we appreciate it and this is what we wanted. We wanted some input because of the years and years and years of rumors and rumor mills just you make a study you're going to have rumors because as soon as you do a study everybody's going to go with that you're trying to do it just like the school went on and on until finally it got pushed through are we going to do the same with this until finally the annexation let's keep everybody on the podium talking just a quick answer actually I asked for it because of the rumors both ways yeah thank you Steve I appreciate that. Robert Muffet? Letters to read so if you didn't save me to the end of like the read them and get them on the left hand. How do you want to handle it? **[1:35:40] Mayor Jim Michalski**: That's fine. Okay. Okay. Who's next? Senior. Robert Moffat Senior. We got junior and senior. No, I don't want to talk. Okay. Thank you. Doug Nelson. Doug Nelson? **[1:35:55] Doug Nelson (Township Resident)**: Yes, sir. I appreciate to come to the council and mayor of the city of Moose Lake. I am Doug Nelson. I was a graduate from Cambridge High School. I was on town board in Oxford Township for many years, then constable in Oxford Township. I moved up here 15 years ago, and the taxes have been going up, up, up. And I think I'm speaking for everybody in this room. They don't want the taxes to go up anymore. So, and Dave Reichel over here and I went out with a clipboard after we got the letter which explained that the city of Moose Lake was gonna take away our Moose Lake Township and give us super big taxes. So what do we do? Dave and I talked, we said we gotta do something. So we went out and visited the neighbors of them we see here a lot of them they signed up here in here so I think we got maybe 300 names or so 250 was there on the inner pole oh okay 250 against the annexation of Moose Lake Township and I'm not I represent myself and Dave and what we heard and what we heard was that What are they going to do for them taxes that they're going to put on our back? And as long as it's in the city of Moose Lake, what can they oppose after we get into the city as the Moose Lake tongue ship? And that's where it's at. And this is what I've heard from everybody that we've talked to, Dave and I. Everybody wants to hear and I guess you would call this ground zero Because this is where we're going to start out with with the council and attention to work together to see Why we're doing this or why you guys want to do this? And what's going to affect us in the future? And I'm nervous But anyway I guess that's my piece. Dave, you want to say anything? Nothing, not much more to add to that. The concern was, I did talk to him, and he said urban was different, because that's like anything else. You know, they get their foot in the door, and they can make something happen. Pretty soon we're all paying and receiving nothing. I don't think anybody that would want to come into the city, like you said, developers, No, I mean, they want to come in. I mean, but they'd have to pay their share of what you can't go on to the township. They have the township paying for city water after some developer out here on the west end of town. What do you mean? What do I mean? Running the line from the city out to the town. And everybody else would pay for it, is what he's saying. Yeah. So I guess I mean, one of the issues that came up, and I spoke you about is-so everybody here got this letter right yep well it's most of us I know most you've got one too yeah I'm here too the thing I want to say about this is that you know on the outer limits like out of nine miles east here yeah it makes no sense for you to be in the city no but there's people out there got 40s 100 acres I got 160 Dave's got 180 but In the long run, if the taxes go up in the annex in the township, that would mean that anybody that would want to come up here and build a house on their 40 acres and retire, they're going to say, I ain't going to do it. I talked to somebody that pays more taxes on their hunting shack than they do in Blaine. **[1:40:20] Mayor Jim Michalski**: All right. Well, thank you. Thank you. Thank you. Thank you. If there is one thing that I can add in and As the mayor said, I am well aware just as much as the rest of the council how the rest of this evening will go. But the one thing that I will say, and we talked about it as well, is this letter from the town board came out and it had what your property tax increase would be and that you were not gonna receive a vote and all of those things. And really what we were trying to do was get everybody to come together and have a conversation. And frankly, a lot of that put a stop to us having a conversation. I can't remember his name, I'm sorry, but when me and Dave, is that it? Yes, when me and Dave sat down, how much did you say that your property taxes were going to go up? Like $800 or something? $7,100. $7,700 doesn't... I mean, his ended up... Just after the two of us talked, I think it was $46 rather than $7,700. It doesn't really matter. The point is that this study was to take a look at a rural taxing district that treated people that were not receiving the same services differently. if you have a 80 acre farm you are not urban you are not in the city you are not all of these things that would be taxed differently the four screens that were shown of of sections that were neighborhoods that had housing developments those are the ones that apply to the letter that was sent out those four screens in those four screens only now those people It was proposed to have a very large tax increase, and I'd be mad too. So I'm not saying that you cannot come up and speak. I would be mad about that too. All I'm saying is that based on the number of people that are here, there aren't that many households even in the four screens that we showed. Most everybody, 98% of the township is rural. 99% of the township is rural. Until the town decided they needed more money and they would tax it differently. So that makes sense. I don't know what the rules for changing it are. And that's what I said. Those are... Mayor, let's keep to the... **[1:43:00] Mayor Jim Michalski**: Yep. We have the... I can't hear that guy. I'm going to call the next person up to speak. I'm here representing the township. The township is turning. May I speak for just a moment? Well, be up to it. You're not in line. I'd like to keep a little bit of order, if I can. All right. My name is Mike Corey with the law firm of Corey and Ruby in St. Michael. The town board has asked us to represent the township on this matter. If I can, I very much appreciate your presence here. If we can keep it to one voice at a time, please. We are having a good conversation. This is a necessary conversation. I understand your points. I'm going to try and keep it brief. But when one person is up talking, if you want to talk, sign up, please. It won't work otherwise. So I appreciate that. Thank you. **[1:44:00] Mike Corey (Township Attorney)**: Thank you, Mr. Mayor, for allowing me to speak and counsel. And also, I want to thank you for holding the meeting. This is exactly the right thing to do. I think Ellissa had said earlier we wanted to get a conversation going. You have that conversation in more ways than one, not only with people here, but the town board is absolutely willing to sit down with the city and talk about an orderly annexation agreement. We work with more than 200 townships, probably about 10 cities. That's pretty much all we do is municipal law. We've done somewhere around 100 of these orderly annexation agreements. The hardest part is sitting down and talking about them. The easy part is drafting them. For those of you in the audience and maybe in the city council who don't know what an orderly annexation agreement is, it is where the city and the township agree. We put out land on the map and we say, this is the area you annex from. Here's the conditions of annexation. We typically take that back to our people. public hearing before we approve that so that the people understand what that is. There was a lot of discussion about rumors for 15, 17 years. If we get an orderly annexation agreement, it is in writing, it's a contract, there are no more rumors. We just hold up the contract and say, read it. It typically is a very good process. It gives the city predictability as to where you're going to develop in the future. And obviously, you have a big say in what that's going to be. It gives the township residents predictability because they know how they would be annexed. They would have a pretty good idea of when they're going to be annexed, under what conditions. And a whole bunch of them would have a very good idea that they're not going to be annexed in the foreseeable future because they probably won't even be in the orderly annexation area. So yes, we absolutely will sit down with the city. That's a good conversation to have. Many cities and towns do this. It's a very common occurrence. It does take some time. It takes some effort. We're willing to do it. I was very heartened to hear from, I thought I heard from every member of the council here, this would not be a hostile annexation. That is very much appreciated by the township. I think you're seeing what's happening up the road with Midway and with Proctor. We don't want to be that here. That's, as an attorney, we win. You guys lose, you guys lose. So if we can avoid that, that's good. This conversation is really the first start of that. So with that said, I want to hit on just a couple of other points if I can. If you're willing to sit down and talk, we're open to it. It'll take time. These things don't go fast. But I would ask that at some point you consider that and that that be the next step in where we go. Rather than having rumors, having innuendo, whatever it may be, sit down and let's talk. I think we can get it done. We've got several of these in process currently in our office. Almost always we end up with an agreement. With that said, I want to end up saying a couple of other things here. The four... Your paycheck. Sounds like you got your skin in the game. If I wanted my skin in the game, I'd stir it up so we have litigation. I don't want litigation. Litigation is not where we want to be. We don't want One moment, let me make sure everybody understands. An orderly annexation agreement is where the town board negotiates with the city. They typically carve out an area and they say this is the area that can be annexed and here are the conditions. The conditions are in writing, they are enforceable, And depending on what they are, it may be, and in fact many early annexation agreements are, that the property owner requests to go in. That's not always the case, but most of them that go through our office are. Bear with us on this. The town board represents you. They don't want to do something that's going to say you are going to get annexed whether you like it or not. Before they would ever get to the point of agreeing to that, there would be a public hearing. In virtually all of our townships, This is by far the preferred way to go because the town board has a say in it. The town board has an equal say in it because if they don't like it, they don't agree to it. And typically they don't agree to it until they hold a public hearing and hear from you. You absolutely will have a voice. It is by far the preferred way to go. With that. Why don't we let our attorney talk and say his piece? That's what we're paying for. I'm sure he's not donating his pie. I think he's on our side. Let us let it go. Thank you. Let me answer one. I appreciate that. Let me answer that last question, and then I want to go back to the council with this. The idea of why we are pursuing this, and this is really what I want to go back to you guys with too. The township recognizes that it is in the township's interest and in the city's interest for Moose Lake to prosper. We want the city to grow. We want it to grow into our vacant land. We don't want it to grow into our residents who don't want to be annexed and have them annexed in. We want to make sure if there's a business that wants to locate in Moose Lake, you have the land for it. Maybe that land comes from the township. That's part of our orderly annexation agreement. If you have an industry that wants to come in, we want those jobs here. We want to make it so that you can bring that property in, again, through an orderly annexation agreement. We don't want to have our subdivisions annexed when people don't want to come in. I don't think you want angry residents in. It's in everybody's interest that if a subdivision developer comes in, we make available the vacant land so they can come in, put in sewer and water, get annexed into the city, and go forward. That's where we're coming from, to be very clear. So let me go back for a second to the issue. Ellissa, you had said that those four Developments of the four subdivisions. I'll call them the slides that you had up there Those were the only properties that would be charged the city rate. We've dealt with this before we unfortunately don't have the latitude would like from the from the statutes. I've got the copy of the statutes. I'll give them to you here the rural urban taxing district statute is It says if you have sewer or water service and you're a planted lot, you cannot be in the rural section. You must be urban. So when you look at that map, and I don't know if, Tammy, if you can, I don't even know if you've got the slides. Do you have a slide of the whole township? May not. So if you look at the township, there's a whole bunch of planted properties around Sand Lake that are not in your areas one, two, three, or four. law there will be in the urban tax district i think it's about 50 or 75 homes i didn't count them but in addition to what you think and i don't know what your slides are even going to show um do you have one of the whole township you may not probably don't i don't think that we have the sand lake one and i talked to somebody else and i think the same thing that you do so i agree so it will include a whole lot more properties than what you're seeing here that'll have a big impact and i think you guys can appreciate don't want to go there and again that's why we want to talk about orderly annexation to make sure you've got room to grow our residents who want to stay out stay out so with that I'll hand you the the statutes I was looking at I think you can take a look at those I think that's everything I've got there any questions for me is that townships representative. **[1:52:15] Mayor Jim Michalski**: At the end of this, after we hear all the comments up until 8 o'clock, then we will close that and the council will discuss the next step, if any. And then we would definitely, I imagine you'll be here for that too. **[1:52:30] Mike Corey**: I will. **[1:52:31] Mayor Jim Michalski**: You'll hear what, if anything, the council does. I appreciate your being here tonight, and it would have been nice to have met before all this and just discuss it. But this probably brought you into the picture. **[1:52:45] Mike Corey**: It did. And we have met, and we'll go forward. So, again, I thank you. **[1:52:50] Mayor Jim Michalski**: Thank you. Thank you for your time. And, again, I'd ask the township representatives, we do definitely want to hear from you, but we need to keep it in a way that everyone can hear, and it's not people talking over each other. The next person, Cheryl Juntman. Thank you. No? I agree. I agree. I pretty much agree. I'm not sure. Is it Duane? Who is this? Duane Juntman? No, it's there. I'm going to sign up on it. We're here to get the information as well. Okay. All right. What's your first name? I'm reading it. Do you guys have more of a plan? This is like... step one of anything goes beyond it. None of this has ever been studied before. I mean, there wasn't a lot of information there, so I'm wondering if you guys have more. **[1:53:45] Mayor Jim Michalski**: Oh, the study was, I think, 27 pages long. It's on the city's website, on Facebook, on... We sent it to the town board. I mean... Kent Grandlinard. **[1:54:00] Kent Grandlinard (Township Resident)**: My address is 4477 Northbrook Boulevard. I actually live down in Washington County, but my fire number is 4651 out on County Road 11. So I'm a landowner and taxpayer in Moose Lake Township. I live north of Mr. Nelson. So I appreciate this. One thing, I've also lived in a township for 32 years down there, and I've been on the town board for 18. And we are a township. has had a hostile annexation. If you're ever familiar with Stillwater and you're driving into town, essentially all the land on the south side of 36, where Menards is in the high school, that was all part of our township. And it was taken over wrongfully by the city without any input, so I appreciate your saying you're not interested in a hostile annexation. We've also had parcels, though, and appendages kind of chopped off. a couple other cities and taking we're mostly rural township hobby farms a few dairy farms but mostly rural suburban housing two and a half acre five acre ten acre lots of the sizes the one thing I want to emphasize it's not just about the taxes it's kind of about the lifestyle and that's what got our residents so fired up when I was on the town board in 2000 and people you know very concerned about of the changing lifestyle what comes with the city I'm going to ask how many miles of road does the city have maintained 26 I, we're not. 10 to 11 or? Here's an example. I love township government because I think it's grassroots. We don't have any employees. We contract for services. So if it doesn't snow, you don't pay anybody to snowpile. So the township has 26 miles of roads that they maintain. Yeah, probably mostly gravel. We have 11 miles and they have no debt. And it's impossible for cities because of the sewer and the infrastructure and the staffing costs to not expensive to operate and that's just the way it is so aside from the lifestyle I mean the taxes would go up in our township we did a consolidation study with the city of Lake Emma between citizens and then we put it up for a referendum to the citizens in Baytown and we said no we don't want to go in and it ended up helping us be a little more cohesive and we started a group like this and built their own community center with volunteer labor and everything and I'm happy to see a lot of people who are interested in this One thing I would actually consider that when I came onto the town board years ago, one of the cities was much more amicable to negotiating and talking with us. And we had a joint powers agreement with them because we have some groundwater contamination issues and some sewer issues for a school that's in our township. And you don't get anything because you don't get the tax base. they help you for the infrastructure the sewer and water that the city is already operating and so I would ask you as an alternative with the township and you communicate with them and they're not interested that you entertain the idea of a joint powers agreement they do work well across the state of Minnesota with townships and cities have done them but all parties have to want to do it and usually the cities just want all the land because they want to increase their tax base and councils change it's nice to hear you say we're against it but I've seen it later change councils change and all sudden something that's old is new again and everybody wakes up in the morning reading about it in the paper so I would strongly oppose any annexation without a hundred percent of input from the mostly town board thank you. **[1:57:30] Mayor Jim Michalski**: excuse me you turn that microphone off we can hear better with you Just don't talk into it when you when you go up I don't know I don't know how so just don't talk into it. Walter Lower? **[1:57:45] Council Member Walter Lower III**: Hello, my name is Walter Lower III. My family owns the Great Theater in town here. And... I'd like to think that the council became amongst a typical issue like this. All our small town communities around the area are all in trouble. This isn't an issue that's just around this area, taxes and all that. It's coast to coast. There is demographics of moving away from rural America. And small towns, and it's the small town communities around them. And what I fear that this has done is it's driving a wedge in between Moose Lake and its surrounding townships. And that's the last thing that we need to survive in the situation that we're in. I mean, you can go out tonight and when you dive home, take a look at downtown Moose Lake. It's dying. It's been dying basically my whole entire life. If you go to Barnum, if you go to Willow River, if you go to Sturgeon Lake, go to Kettle River, Carlton, all the 23, all the 61, they're dying communities. And we need to stick together and work out these problems. Nobody wants to pay more taxes. I surely don't want them to pay more taxes. And I don't want to see the city be forced into annexing the townships. I'm against that. I also don't know all the facts, so that's why I'm here. I hear rumors just like everyone. I pity these guys for all the rumors that they have to hear. And the thing, some of them are just completely ridiculous. But in order to get these problems solved, these guys have to be heard. And they're not here to take your money from you. They're here to help the community as a whole, the townships and all these places. desperately need help and that's what we're here for. I wish there was more information provided sometimes. I wish that the city council would release the budget in the paper so the townsfolk and surrounding community have more information to judge a knowledgeable decision so they can make decisions. Without information we don't have that but you know The logging's gone, the trains pulled out, and made this town decades ago. We just watched the feed mill get tore down. That's the death of another error. Farming is just trickling. In the 70s, farming basically went. They took all the creamerings out of the town. Every town had a creamer. We no longer have creamerings. Thank God we have the prison, the hospital, and some type of business here. Otherwise we would have nothing. We would have nothing. And things are disappearing. There are a few things coming in, but there's more disappearing than coming in. And it's a difficult, difficult situation. And we need to work together. That's what we have to do here. We can't bicker between ourselves because then there'll be less business here, there'll be less tax revenue, and Moose Lake has always had the problem. does not have a big tax base. And one of the ways to solve that is to annex property. And they have done small. I don't see annexing all of the townships. That would never make any sense. I don't know if any of the townships should be annexed. But it must be looked at. And, you know, like I said, we all need to get along here and fix this. Or else our children are going to keep moving out of town. We want to see some families stay here. We're an old community. We've become an old retirement community. And you can't annex or tax yourself into prosperity. It takes hard work, dedication, resolve. And the people of this town did that twice. They rebuilt this town, and they built it twice after the fire. And it took everybody getting along, getting along and being prosperous. And that's what I just wish we would all know, how we look at it. It isn't the people and the businesses of Moose Lake that we want to annex this. I had never ever said that to anybody or actually even heard many people in town say that they want to annex township. So just use your best judgment and let's all look at this issue and get along and let's begin. Or else we're going to be Another town dead on 61. Another town dead on Highway 23. And that's not what we want. So I thank you all for coming. **[1:58:30] Mayor Jim Michalski**: What's that? Turn it on, maybe? All right, let's see if it works. Can you hear me? No? No. I'll give it a little bit. All right. Next. Amanda Brown. **[1:58:45] Amanda Brown (Township Resident)**: I took the time to read the report that you have on your website, and I've read most of it, not all of it. If we do have questions, perhaps you or Tammy could answer those. And I want to start on page seven. It talks about the city urban tax rate. I would like you to please explain what that is going to amount to be. What it would amount to be, the exact tax rate? 100 percentage, yep. **[1:59:15] Tammy Omdahl (Northland Securities)**: I can tell you what our tax rate is right now. I cannot remember what the tax urban tax, it's the tax rate that the city's at. based on tax capacity. I don't... Which one are you looking at here? No, it's in the full report. Oh, full report, I'm sorry. Yeah. So for instance, like right now, the tax rate is 0.61% or something like that. So if you take that percent times a property value, that's what that is. **[1:59:45] Amanda Brown**: Okay, because it states that there's going to be an increase in the rate will result from certain properties within an annexation area being taxed at the city urban tax rate versus the city rural tax rate. in general terms of what I'm talking about number and it ties with what attorney Mike Corey was saying earlier. It reflects the fact that under the assumptions of the report that within the town that there would be certain parcels that would be subject to a city tax rate, an urban tax rate, and certain parcels that would be subject to a rural tax rate. So in effect that would be the same tax rate that Okay. **[2:00:15] Amanda Brown**: And then also on page 8, you guys talk about properties located within annexation will not incur any utility charges from the city unless city utility services are being or will be provided. I want to know if there's future plans extending your services. **[2:00:30] Mayor Jim Michalski**: only when somebody requested I mean otherwise the the idea right now is to not extend utility services outside of the city limits. **[2:00:45] Amanda Brown**: and then I want to know where are you going to define city limits. **[2:00:48] Mayor Jim Michalski**: well the city limits are the current ones yeah current ones right now with the city limits the council passed a resolution well it's not a resolution but but a It's kind of a jagged line. I could show you on a map what the city limits are. We will not extend outside the city limit. **[2:01:05] Amanda Brown**: Okay, so the resident... A mile? **[2:01:08] Mayor Jim Michalski**: Oh, right next to the city limit. For like water? Well, like Casper Edition. A couple years ago, Casper Edition wanted to be annexed because of their water problems. The wells that are there, evidently, for years, they've had a problem. So a study was done, and we gave that information to the residents of Casper, and... said no it would cost them too much to hook up to city water so that ended it we didn't pursue it any farther and it's up to them if they if they wanted to come again and talk to us about being an extra we would open that up again but it's in their hands we're not we're not going out and asking them and we're not extending the water outside the city limit-it's just not cost effective and the cost to do it high and that's why they said no. **[2:02:15] Amanda Brown**: So the properties that you intend on annexing into the city, is that going to become city limits? **[2:02:20] Ellissa Owens (City Administrator)**: If this somehow went through? Yes, that would become city limits, but that does not mean that utility services automatically get extended to all of those places. **[2:02:30] Amanda Brown**: Okay, and it's going to be limited to the four the three pictures no four pictures that you showed on no those were those were just pictures of what would be the urban tax rate although as the township attorney brought up there there would very well be an area along sand lake that would be included in an urban tax rate as well but those are just for tax rate that doesn't mean that utilities are automatically extended to anything And then also in here, it addresses that the city established an access fee for properties adjacent but not yet connected to existing utility lines. Can you please explain to me what that access fee is going to be or what you're meaning by the access fee? **[2:03:15] Ellissa Owens (City Administrator)**: I don't know where she's referencing. That references that when there is a connection to municipal utilities, sometimes cities will charge a fee for conducting access to the system. and then they charge a fee for the use of the water. So it referred to, there was no assumption in the report that there could be an access fee but noting that some cities do charge an access fee. **[2:03:45] Amanda Brown**: So if you're gonna annex property and say 25% of them wanna be annexed and the other 75% don't, are you gonna assess the access fee to the other 75%? **[2:04:00] Phil Entner (City Superintendent)**: We don't have one-an access fee-and the access fee I guess I've never had experience with one but does that it's for properties outside of the city limits? **[2:04:10] Tammy Omdahl (Northland Securities)**: It would be a cost of connecting to the system payable at time of connection. **[2:04:15] Phil Entner**: Oh, our water connection fee is $250. The sewer connection fee is $250. I think the sewer connection fee for the district is like $5,000. **[2:04:25] Amanda Brown**: So you're guaranteeing that those that want to be annexed and then want your services are going to be assessed those access fees and that the rest of the portions that don't won't? Sure. **[2:04:45] Tammy Omdahl (Northland Securities)**: Maybe this would address your questions more broadly than what I think. THE ASSUMPTIONS IN THE REPORT WERE THAT. THEY WERE ASSUMPTIONS. IN PREPARING THE REPORT, WE ASKED THE STAFF TO IDENTIFY WHAT PERCELS MIGHT BE IN AN URBAN TAXING DISTRICT, WHICH IS WHERE THOSE FOUR LATS CAME FROM THAT WERE IN THE REPORT. THERE WERE OTHER ASSUMPTIONS MADE. SO THAT WAS IN ORDER TO PROVIDE SOME INFORMATION ON WHAT THE TAX IMPACT WOULD BE GIVEN THESE ASSUMPTIONS. SO IMPORTANT TO NOTE, AS STARTED AT THE BEGINNING OF THE MEETING, THE COUNCIL HAS NOT TAKEN ANY VOTES OR MADE DECISIONS AND MADE They frankly didn't see those assumptions until they read the report. So Northland worked with staff in order to get to that bottom line. What would be the tax impact if this happened? Certain assumptions. **[2:05:30] Ellissa Owens (City Administrator)**: Maybe it would make more sense if I explained to you other places within the city that have extended water services and how that cost went. Is that kind of what you're asking? **[2:05:40] Amanda Brown**: Yeah, I want to know because there was a case over in Mora where Mora annexed surrounding township. Okay. And there was a court case over in Mora in Kanabec County where the gentleman was refusing to hook up because he did not want city services. He had a well and he actually had two wells on his property and a septic sewer system. Yep. And he had a barn and one, the barn particularly, had water and he refused to hook up so they averaged out some fee and tried to figure roughly on his cattle how much water and they assessed him. Okay. And I'm asking you, is that what you're planning to do to people who are part of the annexation? **[2:06:15] Phil Entner**: So how we have extended water before is usually it's as a part of some development or somebody's building something and the developer is the one that has the burden of paying for extending water services there. We have a water connection fee for those that then connect into it. We do not have a policy that says into the township that somebody would have to connect into it. Cities have different policies on whether they run a water main down in front of your house, whether they make you connect to it now, whether they do it at the point of sale for the next person purchasing the house, whether they carry an assessment forever. We don't have that because we have never had to go, we've never gone through that. **[2:06:55] Amanda Brown**: And then I also have a question too. reading this report I don't really see many things that are going to benefit Moose Lake Township residents so I want you to explain to me how we are going to benefit. **[2:07:15] Ellissa Owens (City Administrator)**: So I mean i guess my question would be is this worth going over? Do I have a document that I put together that lists some benefits? Yep and I can go through them. I'm pretty sure that we're all on the same page that we're not annexing the entire township. I mean, we can keep going through the list and I can read you my document of what I think the benefits are, but... **[2:07:35] Amanda Brown**: Give us one. **[2:07:37] Ellissa Owens (City Administrator)**: Give us one? Access to water, sewer, police services, planning commission. **[2:07:45] Township Resident**: We have all that. until the wells contaminated. **[2:07:50] Amanda Brown**: I'm sorry, but when I did read it, I have to personally admit I didn't see much that would benefit. **[2:07:55] Tammy Omdahl (Northland Securities)**: I will say, I mean, the tax study, it was not intended to list benefits. annexation. The tax study was only to look at property taxes. This hearing was only called to talk about just a tax study. So, I mean, some people have asked why is there not more information. It's because this was only supposed to start a conversation only about property taxes, and then it kind of blew up from there. **[2:08:15] Amanda Brown**: No offense, but is this only about collecting our tax dollars? **[2:08:25] Ellissa Owens (City Administrator)**: I would say that it has almost nothing to do with property tax dollars. There's a $140,000... There's a $140,000 **[2:08:35] Amanda Brown**: Well, I just asked you to tell us how we're benefiting. And all I heard is tax, property taxes. **[2:08:45] Mayor Jim Michalski**: Please hold it down so the person at the podium can speak. And just the time limit, there's many more people that would like to speak. **[2:08:50] Amanda Brown**: This is pretty much my last question. I went through just about all of them, or other people have asked. But I just wanted to know, how are we going to benefit? Other than you're collecting our tax dollars. **[2:09:05] Mayor Jim Michalski**: Remember, this is a study that we... just seeing ourselves so we're looking at the whole picture to make a decision so that's why we had a public hearing to hear what the township we didn't we really didn't have to have a public hearing but we did it because you're your neighbors you're our neighbors so we wanted it **[2:09:20] Amanda Brown**: I gather that, Ted, but you guys had the study you've obviously had it long enough to put it on your website I'm sure you reviewed it before you put it on the website So I just want to know. **[2:09:30] Mayor Jim Michalski**: Only individually. This is the first time the council has seen it. The council has not discussed it amongst themselves because you can't do that as a council. And I'm sure the township understands that. The people that are on their boards, they're not supposed to discuss items outside of their meeting. So we don't. As a council, we have not... about this. **[2:09:45] Amanda Brown**: But they've not individually read this off your website? **[2:09:50] Mayor Jim Michalski**: Yes, everybody did. We gave a copy to the township also. So then we wanted to get that out to them for their own knowledge. For all of you, I don't know if they passed it out to you, made it available, or reviewed it at their meeting, which they could have at the township meeting. We left that up to the township. **[2:10:05] Amanda Brown**: Okay, so then it's really not new information because they have access to it to read it. So they were abreast of it prior to the meeting. Yes. Okay. I think I got all my questions and points made. **[2:10:15] Council Member Douglas Juntunen**: If I can answer her, Ted, can I answer her? In my opinion, when I reviewed this study, I didn't see any benefit either way, so for the city or for us, because it was pretty vague. We were looking at what can we provide for the best for the people, and that's where I come from, and I didn't see any positives. in the short run for anyone where every year we have somebody come up and say we'd like to be annexed and they're all gone home for it until they find out who has to pay for it. Because they expect everything for free. We're going to build a house, boy you should provide all these services for you. Well that isn't the way it works. We don't have the money. So that maybe is helping answer some of these issues out here for people around the city because they want to be annexed. We just don't have the money. When they find out they have to pay for it, they don't come back and ask to be annexed. **[2:11:15] Mayor Jim Michalski**: Thanks, Amanda. **[2:11:18] Amanda Brown**: You're welcome. **[2:11:20] Mayor Jim Michalski**: Appreciate it. The next person, Wendy Dehwe. Thank you. That was Wendy Dehwe. Okay. I can't. Oh, Michelle. Sorry, Michelle Lee. **[2:11:35] Michelle Lee (Township Resident)**: I wasn't going to speak tonight, but I'm a politician now, so. Can we believe you? I'll leave that up to you. Mayor, Council, Mr. Peterson. It's been really interesting tonight. I love the fact that all of my neighbors both in town and in the township are here because this is what it's all about. So often nowadays we're so busy on our cell phones, on social media, and we don't do this anymore. We don't come together and we don't talk as a community. I'd love to see more of this and I've seen some heartfelt comments tonight about what this town has meant to all of us over the years. I came here in 1983, so I'm still a piker. So I'm not really a Moose Lakeian, but I have lived in the Moose Lake Township since 1983. And watching what's been going on tonight, it reminds me of being a kid and watching a snowball at the top of a hill. And pretty soon it starts rolling down and it gets bigger and bigger and bigger and we're all crushed. heard about the rumors 17 years of rumors you're saying mayor 17 i've been the mayor for 14 so i've heard him for 14 years and i i asked mr talbot and he said uh he's heard him for the whole time he was a city administrator and i understand that people hear rumors we all get upset we come together we start gnashing our teeth and wondering where this is all going to go but how i don't know how we went from rumors to a study And that kind of boggles my mind. And now from this study, we were talking tonight about a takeover or an annexation. And now we're talking about an orderly annexation. And we have lawyers involved. And wouldn't it have been simple just to get us all together and do an orally annexation agreement? And then move forward. I mean... And I'm not pointing fingers tonight. But we're all riled up. We really love this community. We love our homes. And yes, some of us are graying. Some of us want to... Some of us are graying. What's going to happen? Some of us are growing old. We want to spend our lives here, and we want our community to thrive. But we just built this beautiful school that is burdening a lot of our senior citizens, and they're seeing higher taxes. And now we're talking about a possible orderly... takeover of the township which could build even more pressure on people who are struggling to make ends meet on fixed incomes. So is it possible before, can we, and I'm talking to my township folks too, can we come to a place where we can just these kind of meetings and do a hand raise or a paper ballot so we can start cutting out the expenses. I know that and this is a very nice lawyer. I haven't had a chance to meet him but he sounds like he knows his business and this nice lady here who put this study together, she sounds like a nice lady but can we all just come together as a community And if it goes back to the old paper ballots, do we want this or don't we want this? And then move forward with that. Ellissa was talking about how we have been slowly annexing some pieces of property because of industry or people want to be included. They want their property included so they can build a home and live in town. Has that process been a difficult one over the years? **[2:15:30] Ellissa Owens (City Administrator)**: It's gotten slightly more difficult, but that's not to say that we can't keep going on that way. That's fine. **[2:15:40] Michelle Lee**: So it's still a possibility. So why reinvent the wheel? Why let that snowball continue to go down the hill until it gets so big that it buries a lot of my good neighbors and friends? **[2:15:55] Mayor Jim Michalski**: To answer to that, you have to start somewhere. of annexation there are so many questions that come up from it when a when the area in the township comes to the city and says we like to be annexed and there's been several while I've been the mayor and a few annexations have happened sure there are so many things that have to go on and it's such a process that each time you do it it's like you're you're studying the whole thing again and going over it all again and all the questions come up and a study had never been done, ever. We look back through the history and nobody can ever remember one ever being done in 60 years. So to me the first step, there should be a study at some time. So you have a base, there should be a base to work with and the township should know that information as well as the city. That's why we kept it wide open, put it on the websites and a copy to the township so that you have that information. So whatever happens in the future, and usually a study is good for probably two to three years. Things change rapidly, especially at the state and federal laws, and you know that. You bet. County can change. So... You should have a study to work from. Use it. To me, this meeting is part of it. We're not interested in anything but a friendly annexation of any part of the township. If an area, if it came to us next to our city limit, of course we're going to look at it and we're going to talk with the township board. immediately they have that document to look at information and we do we have a base to look at we've never had that in the past so now we have this base thank you for that and is that something that your city administrator can continue updating past two years past four where we don't have to hire lawyers and and fight amongst ourselves when we're all pulling the same cart There's a lot of information that goes into it, probably beyond what an administrator could do. That's why you look at companies that can do that. And it's time consuming. But what it does, it gives the current council and the current city administrator the information they need. The township has it also. And we go from there. Whether it is ever done again, I don't know. It may never ever happen. It may have to. It may be 60 years to the next study. I don't know. **[2:18:20] Mark Lund (Township Resident)**: Can I interrupt here just for a second? I need you to sign up, but I have a question. Go ahead and come take my place. I'm done. No, I'm not going to. I'm not going to. It's to this lady that did the study. I have a very simple question. How long has the study been for? Plain and simple. Two years, five years, ten years? **[2:18:45] Tammy Omdahl (Northland Securities)**: Okay. The general impact of giving those assumptions would stay the same. What will change and what he was referring to, the data was based upon taxes payable, tax based from 2017. So it could be different from 2018, 2019. Right. Let's say a big business came in and the city's tax base changed. So we'd have to go through this all over again. Yes. Or not again. Not really. No. But it's as good as the assumptions stay current. And they will change. Mm-hmm. Thank you. **[2:19:15] Mayor Jim Michalski**: Thank you. Paul Christiansen. **[2:19:25] Paul Christiansen (Township Resident)**: Can you hear me from back here? Yeah. Good. Thank you. Again, I have a question for the Northland public finance people who put the report together. There's a lot of property tax, a lot of homeowner reports. Did a really good job of looking at what potentially could be there for Moose Lake township. I'm curious just where in the report I didn't see, and I guess I went through it a couple times, but where could it take into account some of the corporations? We have Schofield, Dollar General, McTrib, McDonald's. Where does it talk about the taxes that they're paying? And where is that disclosed on the financial payment for the city? Or has that been looked at before we came here? **[2:20:10] Ellissa Owens (City Administrator)**: As far as how much they pay in property taxes? Yeah, I don't see them in the report. Well, they're all, A, they're already included in the city. So that's anywhere that you see the taxable value, the taxes paid, anything like that that's included in that. And it's also public information for anybody can access how much. **[2:20:30] Paul Christiansen**: If this version of it went through? **[2:20:32] Ellissa Owens (City Administrator)**: Nope. **[2:20:33] Paul Christiansen**: I did have another question. Assuming that this does go through, in the report it said the population goes up by 50% from 2,600 people to 4,000. Some ought to be home. We have a township board. I'm wondering what happens for the election, because do we get a chance to vote for who we want on our city council and who we want for the mayor and who we want for our city administrator? **[2:21:00] Mayor Jim Michalski**: Yep. Well, not the city administrator. Yes, yes. **[2:21:05] Ellissa Owens (City Administrator)**: So with city council, the city council would have to, and the town board would have to figure out a new form of government. It could be two people from here, two people from there, one at large. It could be five at large. It could be, yes, that would have to be looked at. **[2:21:20] Paul Christiansen**: So there could be open elections? **[2:21:22] Mayor Jim Michalski**: Yep. **[2:21:23] Paul Christiansen**: Okay. If we went there. That's all I got. Okay. **[2:21:35] Mayor Jim Michalski**: Don it. Tell him to bring him up. Yeah, I mean, if he wants to bring him home. What up, Bob? Hold on. I think Bob wants to talk. This takes 15 minutes. He's just going to give the letters. Is he? He's the first one. He was the second one. If anybody else wants to speak first, go ahead. I just think we're getting time constraints. Please go ahead. Did you want to hand those letters in? Did you want to hand the letters in so they're part of the record? I would like to turn them in, but I'd also like to mention their names so everybody knows that these are. Okay, okay. Let me turn the letters in. All right, what's your name? Dave Jaserski. Highway 61. Okay. Yes. Now, you said you're not annexing anything. You're not looking at it, but you're talking about some developers and Sand Lake out there being annexed in. So you are looking at annexing something. I'm in Sand Lake. I don't want it. We've got developers that are coming in. They don't live around here. They're going to make money. They're going to be gone. I pay the taxes. I don't know if you guys live in anywhere that's going to be annexed in. I don't even know if you live in... city limits. I don't want it. I don't want it. I just want that down in record. And can I be out of it? Can I be, my little plot right there, can I be out of the city limit? **[2:23:15] Mayor Jim Michalski**: We can't annex area out in a township. It has to be next to the city limit, touching, connecting the city limit. You can't just reach out and grab a piece a mile away and say, hey, we're going to grab this. **[2:23:30] Dave Jaserski**: Well, what about those Complex housing complexes you were talking about they are near the city limit. **[2:23:45] Mayor Jim Michalski**: You'd have to do the area that that they're in and it would have to be next to the city. **[2:23:50] Dave Jaserski**: And then you also said you're gonna include sand lake in that. **[2:23:55] Ellissa Owens (City Administrator)**: No, the study looked at the entire township, okay, and then you've answered my question. **[2:24:00] Mayor Jim Michalski**: Thank you. Next Donna. Or is he coming up? No, I think you need to go in order. Donna McCauley. Donna McCauley. Donna McCauley. **[2:24:15] Donna McCauley (Township Resident)**: I won't be able to hear it. I'm listening to all these people and I'm just impressed with you. We've got a lot of good people in this world. What's going on? I drove up to Redwood. I'm glad I didn't put it in my two cents. We live in Redwood. But we had to stay connected. So we looked for a place and we found a place on Lazy Pine on Sand Lake. And it's been just a gallery place. We have five kids. They're 50, 30, 50. But they're down here. I love this. The town has changed. I also wanted to know what's in it for the people that are in the township. I was surprised to hear you talk about Casper Edition. I think I just wanted to do a mission. And all the three of the residents out there excited. And the reason we were concerned is we had some of them were Sandpoint Street. about the base? As far as what? Why we're doing the study. Why we did the study. **[2:25:30] Mayor Jim Michalski**: Are you saying why are we annexing the township or are you saying why did we do it? Other than there had never been a study before and nobody in the township or in the city really knew what the effect would really be. There were so many rumors that It just made it difficult to start any discussion on any of those items. It was more to get a base so the township knew themselves and we knew it also, and we both had the same information. And, of course, the township can do whatever they want with that information or whatever. We're not... Like we said before, we're not looking at a forced annexation. We don't want to do a forced annexation. It's just an informational, get this information out. First time a study has ever been done. And go from there. And maybe the rumors will totally stop or they'll get worse. I don't know. I will not do a forced annexation. We all testified that we're not for it. We've said that. None of us are for it. Actually, there isn't any. Nobody wants an annexation of this township, period. Is this Peterson? Randy Peterson, yeah. Randy Peterson. No. Talk loud if you can. **[2:26:45] Randy Peterson (Township Resident)**: I'm not from around here, but I do get the property here. And my wife and I would like to retire here. But with this taxing rate, I'm very concerned that you guys are going to tax me on my property. This is where I grew up. Actually, I grew up in Florida, but now I'm in Moose Lake. I don't want to live in the city. I don't want to stay. I don't want to. I'm a country boy, and that's where I want to be. Thank you. **[2:27:15] Mayor Jim Michalski**: Do you just want to read the names on the letters? **[2:27:18] Robert Moffat**: I just want to read the names. I was the second one name called, and I said I'd wait till the next. So that's why I want to just make sure these people are heard. I want to make sure that Doug Holtgren, I think there was copies made so you guys can all read it. Doug Holtgren, he's against it. any part of annexation. We have one here from Kent Gartland also against it, any part. One from Patricia Follin also against all the same here. I have one from I have one from Roger Teeling. I have one from Rick and Karen Caesar. And I have a very good one here from Mona Bischoff. And if you'd like me to read any one of these out loud, I'd be glad, more than happy to. Roger really wants his lead. Do we have time? **[2:28:15] Mayor Jim Michalski**: Yeah, it'll take away time from other people in a township. Let's let these other people speak first. You guys do have copies of it. **[2:28:20] Robert Moffat**: If you promise me, you'll read it. I can email it to everybody, too. Okay. Yes, but she did make copies for me. Oh, somebody did? Would you like to read it? I don't want to read it, no. I can read it if you want. You find it here. Or I can read it if it's not bothering anybody. Open letter to the city of Moose Lake and to Moose Lake Township in regards to the question of annexation of the township into the city. I'm not in favor of the city annex of Moose Lake Township. On Friday, April 6, 2018, I visited Moose Lake City, Moose Lake Business Office. Thank you. It got to my attention that the Moose Lake Police Department provides the folks in the township. I reminded the administrator that the county sheriff deputies and the highway patrol also respond to the city. As needed to assist the city jurisdiction, police calls, it's called mutual aid. Township residents' taxes already pay for that. We all benefit. We all pay. There were no other benefits to the township residents brought forth to me at this meeting. I specifically asked if city water and sewer would be made available to the township. The response was that the sewer may come someday, but via a separate sewer district. None of the Moose Lake City tax dollars collected from the township residents due to annexation is slated to pay for township sewers. I specifically asked about city water being extended to the township. The reply was that it was unlikely at this time. I was then informed that the city did manage to get water and sewer installed in the city. I did indeed As the Administrator and I discussed, it took place over 100 plus years. I would also like to remind the city fathers and all the taxpayers that nearly all the city infrastructures were accomplished because of the state and federal aid or grant money. The township's taxpaying citizens pay our fair share of taxes to the county, state, and federal governments. We the taxpayer property owners have already paid our fair share of these services, whether had any benefit from them or not. Number three, I was told that the city would not be going to court to try to force annexation. I trust I can believe that, but we should be aware and continue to pay attention. Number four, I asked if the city increase listed in the township letter was factual. The reply was yes. However, it was told that we are looking at a reduced rate to those who live more rural with more land. It appears that the city wants those of us who live closer to town to pay more for nothing than the ones that live further out. In either scenario, we still gain nothing for our tax dollars. I'm closing. I was asked, don't you want to help pay for a city that you can be proud of? My personal response is as follows. I'm damn proud of Moose Lake and the surrounding area. It has been my home for 62 of my 65 years, even when I worked out of town. I always had a home here. always supported Moose Lake and promoted it in the highest regard. It is certainly not the city's management's fault, but if Moose Lake did not have the highest gas prices in the state, almost criminal for a city with four gas stations, there just might be more business conducted in town. When it costs to go to Cloquet just to buy gas, it makes it very easy to shop there and to enjoy the lower price of costs as well. It will become even easier This is rammed down our throats. I apologize for not being able to be at the meeting in person tonight. Please voice your opposition in this proposal. Thank you, Roger Keeling. Thank you. **[2:32:15] Mayor Jim Michalski**: Mr. Monson, right? Yes. Did you read Doug Hulker's letter? **[2:32:20] Robert Moffat**: Any other oppositions? No. Open letter to residents, City of Moose Lake and Township of Moose Lake. My name is Douglas Holtburg and I live on Sand Lake in Moose Lake Township and Lazy Pines. I'm sorry I cannot be in attendance to this City of Moose Lake open meeting on April 11th, but have my neighbors to please read this letter into the record. My purpose is to provide a few facts and thoughts on this important and hostile action against the residents of Moose Lake Township. In the past few weeks, I, for the first time, became aware of proposal, the City of Moose Lake to annex the Moose Lake Township. To my knowledge, no advance notice has been provided to the residents of the township. In reviewing the final draft of fiscal implications dated November 27, 2017, was prepared by the City. I have five areas that need to be addressed by the City and fully understood by the residents of the township. Number one, in the opening paragraphs of the report, the outside firm engaged to prepare it states that finding and conclusions contained are limited by the information available. This report has been prepared without the help and consent of the township as the elected officials of the township are not in support of this action. This raises the question of how an elected body like the city would even spend money on a project without at first informally working with the township. Reasonable bodies do not respond proposed actions that will create disharmony with its own residents nor its neighbors. Number two, property values located in the city versus the township. According to figures two and four, the township has more taxable value property than the city. Let me be clear, the township has a bigger taxable base than the city and that is what I believe is at the heart of the takeover of the city. City total taxable value, all buildings and lands, $68,249,000 $68,249,281 Township total taxable value, all buildings and land, $76,533,067 Financial impacts, property taxes, this is a big conclusion in the city's report. notes in figure eight that property taxes of the city residents will decline by 14 percent after annexation while residents of the township will see an average increase after annexation of between 18.8 percent up to 188.9 percent for those with utilities. Again, let me be clear that the township residents will be subsidizing the city residents. Personally, I had the administrator recalculate my 2017 real estate taxes based on being subject to the city tax rates and his report to me after consulting with Carlton County that mine would increase $858 per year and I do not use city utilities. You did not read that incorrectly. An increase of $858 for one resident of the township per year after annexation. Implications for general operations, page 6. The city will increase its staff as a result of the annexation, hiring additional people. The township has a higher adjusted net tax base per capita than the city. Example, they want our higher taxing capacity. Number 5. The city has a huge amount of debt, over $17 million, see figure 5. the residents of township will become responsible for after annexation. Additionally, please note that references is made in the report on page 11 that the residents of the township will be responsible for future debt issued as well as improve the city. Number six, there's a lot of information in the report that talks about the values of the property being subject to various new urban taxing districts. I have not researched the implications of this process and what it may for the tax rates, the future of the development of more commercial property, I only point this out for further research. In conclusion, I can only speak for myself, but based on the information in the report of the city and information relayed to me by other officials, I strongly urge everyone involved to stop this process immediately. Additionally, I urge everyone to call the city and individual Moose Lake City Council members and your township supervisors and do whatever is necessary to halt this outrageous, hostile takeover of our township. The facts in this report speak for themselves and as noted above need to be circulated and understood by the residents of the township. Respectfully, Doug Holtgren. **[2:37:30] Mayor Jim Michalski**: Thank you. Because of the time element and we have quite a few people on the list that would like to speak with signed up, I thought maybe we would halt with this list right here and instead people who really want to talk give them an opportunity whether you're on the list or not. Because we're never going to get through the number here by 8 o'clock. So maybe by people raising hands of who absolutely want to talk, come forward, sir, and mention your name. Are you on the list anywhere? **[2:38:00] Jeff Dodson (Candidate)**: No. Well, you write your name. Yeah. We'll have them write it afterwards. My name is Jeff Dodson. I'm your local candidate for state house representatives. I guess what I'm hearing now is everyone is hemorrhaging for too much taxes, correct? The question is, I've heard the city say that they will not do a hostile annexation. Is that correct? You guys are in agreement with that. Are you willing to propose a proposal tonight that there will be no hostile annexation? Do you want to make that proposal tonight so there's a record of that? **[2:38:45] Mayor Jim Michalski**: After the meeting closed, or this portion of it closed, then the city council has an opportunity to make any motions, recommendations, whatever, and then... be my responsibility to follow through any motion, ask for a second, and then a vote. I would ask that you consider that tonight, because I think that would be a good way of reaching out to the townships to show that you are willing to work with the townships and that there will not be any threat of any type of hostile annexation at this time. Well, the council is hearing that, so it'll be up to them to do a motion if that is their sole desire. Thank you for your consideration. Yeah, I appreciate that. Thank you. Gentlemen, Did you sign up? I'm on the list. Okay. **[2:39:40] Mark Lund (Township Resident)**: My name is Mark Lund, and I have a cabin out on Sand Lake. And I am absolutely appalled at what I've seen and what I've heard. I found out about this from a letter Friday night. had this study since November of 17. Why haven't I heard about it? Why wasn't I told about it? And you talk about annexation, but you don't even get to the heart of it. **[2:40:10] Mayor Jim Michalski**: Let me answer my question. When did we give the copy of the study? When did we receive it and when did we get it to the township? **[2:40:15] Ellissa Owens (City Administrator)**: We received it two months ago, just before the council meeting. I brought it to the council meeting on a Wednesday. I sent it to the town board on a Thursday. We have put it on our Facebook like 20 times. It's on our city website. I personally emailed it to all of the township supervisors. You're going to have to ask them why you don't. **[2:40:35] Mark Lund**: I will ask them. That's up to them. I will be happy to ask them. But I'm also very concerned that your lawyer doesn't tell you the full facts. **[2:40:45] Mayor Jim Michalski**: We don't have a lawyer here. That's not our lawyer. That's not our lawyer. That's your lawyer. Hostile. You're not going to do a hostile. Correct. **[2:40:55] Mark Lund**: But yet, under the state statute, all you need is to go to the Office of Administrative Hearing. Correct? Yes. All you have to have is a petition by the city, correct? Yeah. You don't need township approval, do you? For a hostile annexation? No. For any type. It goes to the... Orderly annexation, that is what... Orderly is the idea that you're going to get the approval, but otherwise you could still do it. Or if there is a petition by how many members of the township? I guess I didn't know that you could do it by a petition by the township to come into. So you haven't read the Minnesota state statutes concerning them? **[2:41:40] Ellissa Owens (City Administrator)**: You realize that we didn't actually say that we want to annex the township. All that was done was a tax study. That is it, and calling for a public hearing. **[2:41:50] Mayor Jim Michalski**: Remember, this is step one in looking for information and getting feedback from the township. That was something we did ourselves. We didn't have to have this, but we wanted it. **[2:42:00] Mark Lund**: Wouldn't step one be saying to them, we're considering this? **[2:42:05] Ellissa Owens (City Administrator)**: I did, and I can... Did you tell them before you spent $10,000 on a study? Yep. You did? Yes. You went to the township, and you said, we are looking at taking over your land, and we're spending $10,000 to figure out if it's feasible. Can I answer? Yeah. Okay, so I went to a town board, let them know that we were not doing a hostile annexation, let them know that I would like to speak with a representative from the town board, representative from the city council. Steve Aldrin was there, Jerry was there. AND WE SAT DOWN AND I LET THEM KNOW THAT WE WANTED TO HAVE A CONVERSATION, NOT TALK ABOUT A HOSTILE ANNEXATION, THAT WE ONLY WANTED TO HAVE A CONVERSATION. WE WOULD LIKE TO HAVE A CONVERSATION ABOUT TAXES. THERE'S A LOT OF OTHER THINGS THAT HAVEN'T BEEN BROUGHT UP THAT ALSO DON'T WORK. We don't have zoning ordinances for agriculture. We don't have... One thing that was brought up was Gamblers has a liquor license. Do we have a liquor license for that? There are an incredible amount of issues for annexation that haven't even been covered here. That's why nobody made a motion to annex the township. **[2:43:10] Mark Lund**: Okay. So then you claim that the township knew about this, and yet how many people from the township knew about it? before this letter came out? Raise your hands. How many of it found out with the letter? **[2:43:25] Mayor Jim Michalski**: Three times. It was in the local newspaper, and that's my fault, because I don't do it. Three times. **[2:43:30] Mark Lund**: Because I had to drive three hours to get here. Now, one gentleman asked, how does it benefit me? You're raising my taxes. How does it benefit me? part of that, I think I'm part of that sand lake section that you guys want to annex and that you say is going to be urban. What benefit am I getting? Not getting water. Not getting anything else. So why should I even be partly for it? **[2:43:55] Mayor Jim Michalski**: Well, this is the kind of feedback we wanted to hear. There's a lot simpler way of getting feedback than it for us all here at this night. You know what? This is the best way to do it. hear directly from the people that are our neighbors that we live with, the school, church, you name it. These are all our neighbors. And I understand your confusion or what you don't know or what you haven't heard because you don't live in the community. I understand that. And there's an awful lot of my friends, family, relatives that live in the township also. And when we find out about this, yeah, I came up here. I talked to my friends, but it came as a surprise. I don't like surprises, especially when it's going to hit my pocket. **[2:44:40] Mark Lund**: Were you told that you are being annexed? Is that what you were told? It said I wasn't going to have a choice. Have you read the letter? Yeah, I got it. I have not seen the letter. Is it from the township? It's from the township. I don't think we got a letter from the township. It will be decided by an administrative law judge. Township residents will not get to vote on this issue. And that is the only way that we are saying that we will not proceed. And yet you're going to entertain a resolution and adopt that tonight and then not go back on it, correct? **[2:45:15] Mayor Jim Michalski**: We'll see. That's up to the city council. That's up to the council, yeah. **[2:45:20] Mark Lund**: Okay. Well, then, if you need a formal motion, if you'd accept one from the floor, I hereby move. Thank you. Thank you. I did based just on looking at seeing if there was like neighborhoods that were in a certain area. Yeah. Is there anyone else? **[2:45:45] Township Resident**: Yes, sir. I just like for the urban tax. I live in one of those four neighborhoods. And I'd like to know what the presumptions were that would make that as part of it. I have no city services. So thank you for the study, because that is needed to know that that proves without a doubt that I would be paying a large increase in my taxes for no benefit, because it also states that you have no planning on extending services. Now, if the plan was to extend services, whether something was more contrary or a benefit, Maybe possibly for my small neighborhood, it may make sense, but as you report and your stand, it just makes sense. There's no benefit. Did you sign up? Sign on the sheet? Thank you. I appreciate that. Anybody else care to speak? Yes, ma'am. **[2:46:50] Eileen Krupp (Press)**: I'm Eileen Krupp with FIC News, and I have just one question. I've looked at the statute, and if I'm not mistaken, maybe Mike Corey can clear that up. If the administrative law judge looks at what's been plotted out already for annexation and decides to extend that area, they may do that in an orderly annexation. Is that correct, Mike? **[2:47:15] Mike Corey (Township Attorney)**: organization no organization statute has provision says if the party say and comment but shall not modify the law judge the power of the city and the power of the community so that is more of the advantage of the organization agreement once it goes to the state it's not committed unless the board is being afforded. **[2:47:45] Township Resident**: Yes sir. Excuse me. The City of Proctor, the Court of Appeals, the City of Proctor and the Proctor Township up there had an orderly annexation agreement with the City of Duluth and the Court of Appeals ruled against them and went with the City of Proctor so that that you just stated would not apply, right? **[2:48:10] Mike Corey**: No, that's not quite correct. Let me just briefly tell you how that went. The city of Duluth has an orderly annexation agreement for Midway County. It may come. The city of Proctor does not have that agreement. They annexed the property from that area, the orderly annexation area. Duluth said, wait a minute, that's supposed to go to us eventually through the orderly annexation agreement. you can't break into our agreement. So it wasn't that Proctor was a part of the agreement. They were trying to break the agreement. The administrative law judge agreed with Proctor, annexed the property. St. Louis District Court Judge said no. The administrative law judge was wrong, reversed it, and brought it back to the township. The Board of Appeals issued a decision yesterday, very current. That decision back and we stated the administrative law judge and what it basically said is that an early annexation agreement between the parties doesn't bind the city next door. Okay, thank you. **[2:49:15] Mayor Jim Michalski**: Yes, ma'am. That probably would be about the last question because it's about 8 o'clock. Yes, ma'am. **[2:49:20] Township Resident**: So you're all on the agreement that you're not for a hostile annexation? **[2:49:25] Mayor Jim Michalski**: That's what we've said. I'm not for it. So. Aye. Aye. Aye. Opposed. Hey, Mark. Good to see you. Hey, we're going to make a motion that the only place we annex is your place. That's it. That's it. Is this yours? Or mine? It's still mine. Thank you. Thank you. That's yours? We have to wait till You behaving today? We haven't finished yet. Council, where's the administrator? Thank you. Next is Linda Man. Whoever wants to stay, you're welcome to. Please, on the seat. We're going to finish any discussion going on. You guys ready? You guys ready down there? This isn't even on. Is this on? **[2:50:35] Ellissa Owens (City Administrator)**: The meeting is still open. **[2:50:37] Mayor Jim Michalski**: Make a motion. To what? Close. Nope, the meeting is currently open. The public hearing has been closed. Now you guys can conduct any business that you need to. **[2:50:50] Council Member Douglas Juntunen**: I would like to make a motion. that as far as I can or anyone else on this council at this juncture in time, we can't say who's going to be sitting in these seats. Based on the information that was provided in the study and based on the information of people coming here and through our own ability to look at information and understand it, I would make that motion that today in the future, whatever we can control as this council that we will not make any hostile annexation effort. Very well put. **[2:51:30] Mayor Jim Michalski**: Thank you. I will second that. Motion, what do you want? What verbiage would you like? I can't because I can't say who's going to sit here. And we can't have discussion yet. We have a motion. That's correct. I second it. In a second. We have a second. Any further questions, discussion? Good outcome. I'm glad we have this discussion. That's great And it was it was a good study of appreciate your coming tonight presenting it for both the city and for the township that was greatly appreciated All in favor say aye. **[2:52:15] All**: Aye. **[2:52:16] Mayor Jim Michalski**: Opposed? Motion carried. adjourned. **[2:52:20] Council Member Lou Ohly**: I'll make motion. **[2:52:21] Mayor Jim Michalski**: I'll second it. **[2:52:22] Council Member Douglas Juntunen**: I'll second it. **[2:52:23] Mayor Jim Michalski**: favor say aye. **[2:52:24] All**: Aye. **[2:52:25] Mayor Jim Michalski**: Opposed? Motion carried. ***