Here is the transcript with speaker names added based on the provided context and internal cues. **Note:** The transcript identifies the Mayor as "Mayor Shaw" (or "Sha") several times, but per the provided context, the Mayor’s name is **Jim Michalski**. I have used the name from the official context provided. *** [0:05] **Jim Michalski:** I'd like to welcome everyone to the regular meeting Moose Lake City Council for Wednesday, June 12th at 4:02. First item is a Pledge of Allegiance, please. 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. [0:42] **Jim Michalski:** Am we have to share this? [0:51] **Jim Michalski:** One, the next item is approval of the agenda. I'm going to make one change: 6A will be moved up to right after number three for the presentation, and that way Rory can move the cameras back when that's completed and make it easy for him. Are there any other corrections or changes to the agenda? Hearing none, do I have a motion to approve the agenda? [1:20] **Douglas Juntunen:** So moved. [1:21] **Jim Michalski:** Do I have a second? [1:22] **Kris Huso:** Second. [1:23] **Jim Michalski:** All in favor say aye. **Council Members:** Aye. [1:26] **Jim Michalski:** Opposed? Motion carried. Moving on to number two with the consent agenda. 2A, the minutes. Number one is a regular city council meeting for May 8th, 2024. Number two is a special city council meeting May 28th, 2024, and number three is a joint special city council meeting for May 30th, 2024. Any discussion or questions on the minutes? [2:07] **Walter Lower III:** Motion to approve. [2:08] **Jim Michalski:** Do I have a second? [2:09] **Lou Ohly:** Second. [2:10] **Jim Michalski:** All in favor say aye. **Council Members:** Aye. [2:12] **Jim Michalski:** Opposed say no. Motion carried. Under 2B, Financial reports. Number one, the city council payable for May 2024. Number two, city financial statements for May 2024, and number three, the liquor store profit loss statement for May 2024. For any discussion or questions? Under I have a motion to accept the financial reports. [2:50] **Douglas Juntunen:** So moved. [2:51] **Jim Michalski:** There second? [2:52] **Kris Huso:** Second. [2:53] **Jim Michalski:** Any questions? Hearing none, all in favor say aye. **Council Members:** Aye. [2:56] **Jim Michalski:** Opposed say no. Motion carried. Number three, public comment. This time is reserved for comments from the public on matters not listed on the agenda. Please keep your comments to 3 minutes. Anyone present? Seeing none, we will move on to number 6A. We're going to move that up and that is a presentation from Northland Securities Incorporated. Presentation of the financial management plan for the utility funds. Okay, Tammy. [3:40] **George Eilertson:** I'm George Eilertson from Northland Securities. My colleague Tammy Amdahl is remote and she has worked with the city of Moose Lake, your staff, and I know your Mayor's been active as well on the preparation of this plan. So we will walk through that, and I would imagine, Tammy, that if there's questions... I don't know, Mayor, it's your preference that questions can be asked during the presentation? [4:13] **Jim Michalski:** Okay. [4:14] **George Eilertson:** So Tammy, I'm going to turn it over to you. You just let me know when it's time to switch the slide. [4:21] **Tammy Amdahl:** Okay, that's great. So are you seeing the presentation from the meeting and then I can switch the slide? Is it moving? Yes? Okay. So everybody hears me okay? Mayor, as introduced, I’m Tammy. I would turn my camera on but I don't believe you can see my video. It's a pleasure to be before you. So yes, Northland along with our staff worked on this long-term finance plan for the water sewer fund... *[Full presentation on revenue sufficiency and utility rates ensues until 28:50]* [28:50] **Jim Michalski:** Any questions from the Council? [28:52] **Douglas Juntunen:** I got one. After the first 15 dollar raise, then it's going to go up 1% every year after that? Is that... can you hear the question, Tammy? [29:21] **Tammy Amdahl:** Yes, I did hear the question. So for water, that's the 1%, but if you look at a utility bill, it's comprised of both water and sewer. The water portion each year would only be going up by 1%. For sewer, that year 2025 is larger... then by year 2026 for sewer only it would be about 5%, 4%, and then declining. It's putting that $15 availability charge in 2025 and then adjusting that $15 by 1% each year, plus adjustments to minimum and volume charges. [30:22] **Jim Michalski:** Thank you. Any other questions? [30:27] **Walter Lower III:** I just have one about the revenue. You have no expenses for the next 10 years figured into this? I know that as we get further down in the rate study we'll have enough money, but I guess maybe it's Phil or anybody else, is there anything else that we can see that we might need prior to that 10 years? Because that's kind of a risk. [30:57] **Phil Entner:** There will be for sure, because I know that we have pumps that are... yep, correct. I mean, currently what we're doing is we're handling them as they fail. We're trying to play catchup and we're not on offense; we're playing defense. We're running to the first fire that gets lit; we're not thinking forward. [31:21] **Walter Lower III:** Now the main pumps that we have going up to the ponds, those are fairly new, correct? Or they already reached their limit? [31:29] **Phil Entner:** Since 2012, they need to be rehabbed because they're already about 10 years old. There's three in that station. A pump runs just shy of $100,000 a piece. [31:47] **Ellissa Owens:** Yes, please, Mayor. In the expenditures, we do have repairs that are part of our fixed budget that are included in there. As far as large capital, when this was first presented to City staff, anything above and beyond what's being presented today would require inter-fund borrowing and or the issuance of additional bonds. We've accounted for unforeseen repairs to a certain extent in our fixed expenses; anything catastrophic, there would be a pivot at that point. [33:14] **Jim Michalski:** Also, as presented to you tonight, you will have time to decide at what level you're going to accept. You always have that choice. This presentation is about the start of the process. [33:41] **Walter Lower III:** Well, I would say we decided years ago that we're going to buy that fund or use that fund and get it lower so people don't have high rates. Well, I don't think that we have that option anymore. That fund has gotten to a point where this is where we're at. It's clear from the study that something needs to happen. [34:15] **Jim Michalski:** Well, you can set the level of what your reserve fund is. It doesn't have to be a million dollars. [34:25] **Walter Lower III:** Sure, but the other fixtures break down, and those would be your decisions. [35:10] **Ellissa Owens:** Phil, did you want to speak? Tammy, would you be able to provide—based on one of the charts—a little update on what the reserves look like in the sewer fund over the next 10 years? Because I know they will dip down a little bit. [35:28] **Tammy Amdahl:** Yes, I looked into it on page six. This is showing very minimal in the near term. We're comfortable with this because they have options to unforeseen events, including borrowing from the water fund or introducing debt for finance capital improvements. [36:51] **Jim Michalski:** Everybody understand that? Okay, thank you, Tammy. Any other questions? Phil, did you have a...? [36:58] **Phil Entner:** I would mention that this is just one more piece that we can add towards road projects, right? If we have $100,000, we can fund that sewer utility out of that. [37:15] **Douglas Juntunen:** When would we reach a point where we would be able to start using this revenue towards road projects? [37:25] **Tammy Amdahl:** Right now we just have the sewer lining project at 100,000, but the thought is we have other projects we need to be planning for beyond the sewer lining. [38:20] **Jim Michalski:** My suggestion last month: you have to look at the long term of capacity. Because by the time we're done with this year, we'll be back to 90% capacity at the ponds, which immediately then halts all expansion or growth in the city and in the district. So you have to start looking at the long-term plan of building that capacity. A full plant would take this capacity probably in the $40 million range. [39:55] **Ellissa Owens:** City staff was tasked with a challenge in that Council was comfortable with the $15 availability fee. What this plan achieved is essentially flipping the sewer fund from operating out of a deficit, which is extremely important. It does not accommodate a 10 or 20 million dollar capacity, but first, we had to address the deficit. [41:14] **Jim Michalski:** Any other comments? I think with that, is there anything else on the presentation? Anything to add, Tammy, in closing? [41:25] **Tammy Amdahl:** I do not have any other comments. Thank you for the opportunity. [41:31] **Jim Michalski:** Thank you very much. Ellissa, did you have anything else? [41:37] **Ellissa Owens:** We have the resolution relative to accepting these rates further on in the agenda. We'll get to a point later on where we talk about the presentation and Council's direction. [41:53] **Jim Michalski:** All right. Maybe at this time, Rory, did you want to readjust the cameras and reset everything? We'll take just a few minute recess here while Rory resets the cameras. *[Recess / Music]* [42:34] **Jim Michalski:** All right, we'll continue with the meeting. Moving back up to departmental reports for Chief Patterson. [42:43] **Chief Patterson:** Council, these are the numbers for May 2024. 64 calls for service—kind of a slower month. 24 business checks, 17 extra patrols, 15 traffic stops. Community engagements are still at zero. Couple assists to other agencies. We had two reported burglaries from Region Electric; everything being taken is copper. I do have to give credit where credit's due: one of the new County deputies did a traffic stop on a license plate that wasn't correct. I can say that we recovered a lot of the items from the burglary and were able to identify suspects. [44:48] **Jim Michalski:** Thanks, Chief, appreciate it very much. Thank you also, Kelly, for the officer; they did very good work. Moving on to 4B, Superintendent report. [45:00] **Ellissa Owens:** It was requested that City staff examine and present a real-time snapshot of the Police Department expenditures. So these are through May of 2024. Year-to-date is $222,222.00. Employee wages and benefits have totaled $180,019.00. The year-to-date budget amount for those items is $248,442.00. This is an actual snapshot from our accounting software. [47:35] **Walter Lower III:** These are the figures to the end of May? [47:39] **Ellissa Owens:** You got it. [47:43] **Jim Michalski:** Any questions from the Council? Thanks for bringing that forward. All right, Phil. [47:50] **Phil Entner:** Thank you, Council. We'll start in the Water Department. Month of May: 7 million gallons of drinking water. Water distribution system repairs—you've seen a lot of blacktop patches all over the place. Sewer Department: super high flows, 17.8 million gallons of wastewater. Street Department: I'm glad we did as much mowing as we did last winter. Cemetery: May was very busy, we had a lot of burials. Arena is pretty much shut down other than special events. Recycling center: we're going to talk a little bit about that later. [49:57] **Jim Michalski:** Questions? Thank you, Phil. Moving on to 4C, Municipal Liquor Store Department report for May 2024. [50:11] **Ryan McKeon:** Thank you members of the Council, Mayor, Administrator Owens. Things are going great down at the liquor store. We've been really busy planning for the 4th of July and Brewfest. Year over year, we're still up over $36,000 in revenue. The campground actually was up a little bit; we are up just under $15,000 in the campground. The library book sale is the 14th and 15th from 9:00 a.m. to 3:00 p.m. [52:08] **Douglas Juntunen:** I was just wondering, for Memorial Day weekend, was there any boondocking? [52:17] **Ryan McKeon:** Yeah, there was somebody there. One guy for one night, a camper for three nights, and then last week a camper stayed about six nights. We are trying to switch over our phones to be internet-based; that'll be a huge cost savings. [53:52] **Jim Michalski:** Under 4F, City Engineer. [53:56] **Ellissa Owens:** Yes, you'll see that there are two meeting minutes presented. We've been working with a potential developer. Where we're at right now is fine-tuning design. It looks like there'll be two different development agreements. One will allow for the multif family lots in the front; then we can finalize phase two for single family residential. We've also been working with the DOC regarding design for phase two of the Trunk Highway 73 Trail. [56:56] **Jim Michalski:** Chamber of Commerce updates. [57:15] **Michelle Anderson:** I'm Michelle Anderson, Executive Director. Our membership has increased 30%. Fundraising for the fireworks this year: as of today, we have $33,000 committed. I'm also here to ask about the request for the AG permit for Brewfest, July 13th, 5:00 p.m. to 8:00 p.m. at the liquor store parking lot. 17 vendors so far. [59:15] **Jim Michalski:** We will be looking for a motion from Council to approve that at this time. [59:19] **Walter Lower III:** Motion. [59:20] **Lou Ohly:** Second. [59:21] **Jim Michalski:** All in favor say aye. Opposed? Motion carried. [59:28] **Michelle Anderson:** The other item is the flooring in the chamber office. Town and Country Flooring will be the one to install if approved; it will be at the chamber's expense. [1:00:10] **Jim Michalski:** Because the building is within the city, we need a motion to do the project. [1:00:15] **Douglas Juntunen:** Motion. [1:00:16] **Kris Huso:** Second. [1:00:17] **Jim Michalski:** All in favor say aye. Opposed? Motion carried. Thank you, Michelle. Previously discussed business, 5B, City Moose Lake Personnel policy. [1:01:01] **Taylor Hansberry:** Good evening Council, Mayor, Administrator Owens. In your packet, you’re going to see the Personnel policy. Changes identified: dress code comes at the employee's cost. Contract employees are not part of the layoff line. Section about tuition reimbursement: I specified costs based on the University of Minnesota Duluth—about $500 per credit. Cap of $3,000 per employee per year. This would be the maximum amount Council could approve. [1:04:11] **Douglas Juntunen:** I requested the tuition information. I would still feel more comfortable... with 10 full-time employees, that could be $30,000. I would much rather see something to do with completion of a degree be worked into pay increases than us shelling out money for tuition. We're talking about rate studies for sewers and raising $15 EDU charges. [1:06:05] **Jim Michalski:** I think somewhat on the lines of added to the degree part—he’s taking classes that are going to benefit the city to save the city money. [1:08:18] **Jim Michalski:** At the third month, if you don't like it, you can still adjust it more. The final decision will be done by the Council as the whole. [1:09:12] **Ellissa Owens:** Can Council give a little bit more direction? Would you like to see options? [1:09:22] **Douglas Juntunen:** I would like to see options. [1:11:17] **Ellissa Owens:** The attorneys have included this verbiage based on their experience. We can utilize them as a resource. [1:13:08] **Taylor Hansberry:** Additionally, alongside the Personnel policy is the social media policy. This is for people who are going to be managing social media accounts for the city. It outlines code of conduct, what can be posted, and free speech laws. Right now it's myself and Laura, our library director. [1:14:40] **Jim Michalski:** Moving on to C, Resident summer watering and pool filling policy. [1:14:52] **Ellissa Owens:** Direction was given to collaborate with Water and Light to establish a policy that would provide an adjustment to the sewer bill for any potential resident engaging in additional watering or pool filling. They would be paying for all water usage; the adjustment just goes to the sewer bill. [1:15:53] **Lou Ohly:** I brought it up, I would adopt it. I spent a lot of money on residing my whole front yard. [1:16:15] **Jim Michalski:** Are you making a motion? [1:16:16] **Lou Ohly:** Motion to accept. [1:16:20] **Jim Michalski:** Do I have a second? [1:16:22] **Walter Lower III:** I'll make a second. [1:18:13] **Jim Michalski:** All in favor say aye. Opposed say no. Motion carried. Thank you. Completed 6A. Next item is 6B, Resolution 24-06-02. [1:18:41] **Ellissa Owens:** This resolution identifies intent of the Council to adopt the data incorporated in the rate study. It gives the city the ability to utilize the rate study as a tool for determining rates and establishing contracts. This is a legal step recommended by the city attorneys. [1:20:13] **Jim Michalski:** One item the Council should know: that EDU stated at $15, you do have an option to select a lower amount if you feel the impact is too great. But once this is passed, we're going to start using that data for contracts. If you set it at $15 in a contract and then in September you choose a smaller number, you’re going to have problems. [1:24:50] **Jim Michalski:** I'll ask for a motion for Resolution 24-06-02. [1:25:05] **Walter Lower III:** I'll make that motion. [1:25:10] **Jim Michalski:** Have a second? [1:25:14] **Douglas Juntunen:** Second. [1:25:20] **Jim Michalski:** All in favor say aye. **Council Members:** Aye. [1:25:26] **Jim Michalski:** Opposed say no. I'm going to say no because I think it is too aggressive. [1:27:50] **Jim Michalski:** Moving on to 6C, Carlton County Sheriff. Kelly. [1:28:38] **Kelly Lake:** Thank you, Mr. Mayor, Councilors, Administrator Owens. I did get a first draft of the contract. We're in the process of going through that. We also met at the Police Department to look at the current status of records and the evidence room. That's going to need to be organized before we take over. I can right now dedicate one deputy on August 1st. That will be the first full-time deputy. [1:36:55] **Jim Michalski:** Chief Patterson talked about the copper thing. Is there anything else that is public information? [1:37:31] **Kelly Lake:** Not with that. The deputies have been providing some extra presence. As for the 4th of July, I would request that the city reimburse the county to be able to provide those services; there's no way we can cover it with existing staff. [1:42:36] **Jim Michalski:** Moving on to 6D, Old High School baseball field lighting system and scoreboard. [1:43:08] **Ellissa Owens:** The city's been collaborating with the Home Run Club. There was a request brought to the Park Board regarding a netting system and a scoreboard. [1:43:55] **Spencer:** Yeah, so the scoreboard at the old field hasn't been there for many years. We're looking at an electronic scoreboard through the Home Run Club. Also a new backstop netting system to prevent balls from going on the Old School Road. All materials were already donated to us. [1:45:55] **Jim Michalski:** I'll make that motion that we move ahead. [1:45:58] **Walter Lower III:** Second. [1:46:00] **Jim Michalski:** All in favor say aye. Opposed? Motion carried. Moving on to 6E, Campground attendant new hire recommendations. [1:46:31] **Phil Entner:** Minister staff and myself went through the interview process with two individuals—Logan and Jerome. Looking for a motion to hire those two staff. [1:47:20] **Lou Ohly:** Make a motion to approve. [1:47:22] **Jim Michalski:** Do I have a second? [1:47:23] **Kris Huso:** Second. [1:47:24] **Jim Michalski:** All in favor say aye. Opposed? Motion carried. 6F, 2024 Sewer Lining project bid award. [1:47:50] **Ellissa Owens:** We had a bid opening on June 6th. One bid placed: InSituForm Technologies. The base bid came in at $119,671.72. The bid came in a little high because of unit pricing per foot of lining. [1:49:50] **Phil Entner:** I would not re-bid it. Everyone's filling up. We had to fix this section nine times just to be able to get the footage to get a bid. To me, that's unacceptable. If we're making those repairs, let's get it done. [1:53:56] **Walter Lower III:** I would make a motion to do the base bid at $119,671.72 and the alternate bid of $16,254.30. [1:54:10] **Jim Michalski:** Do we have a second? [1:54:12] **Douglas Juntunen:** I'll second that. [1:55:38] **Jim Michalski:** All in favor say aye. Opposed? Motion carried. Moving on to G, sanitary sewer lift station inspection report. [1:55:55] **Phil Entner:** We're looking at a total of $276,000 right now in repairs that need to be done. They're past their life expectancy. [1:57:15] **Jim Michalski:** This is another example that we should be using that money from the sales tax that we put on the whole community. I want that on the agenda next month that we talk about utilizing it. [2:00:25] **Ellissa Owens:** Our audit is occurring mid-month in July. If we want to have the discussion next month, we'll do our best to provide an estimate, but in August I can give it to you to the penny. [2:02:18] **Jim Michalski:** Moving on to H, Mill and Overlay discussion. [2:02:22] **Ellissa Owens:** An estimate was obtained for a specific section of Elm and 4th. 25,000 square feet, $4.50 per foot, totaling $112,500. [2:03:55] **Lou Ohly:** Maybe just through the intersection and not going up to Fourth? That seems to be the worst part. Can you look into cost for that? [2:04:15] **Phil Entner:** I can do that. [2:16:45] **Ellissa Owens:** Regarding the small cities assistance program, Moose Lake is going to receive $37,678.00 in total. We were wondering if that's enough for the city to get a roller that we currently rent from Carlton County. [2:18:40] **Phil Entner:** Currently we're using Carlton County's dual drum roller. They're really generous, but they work four 10s, so we can only blacktop on Fridays. I'm looking into used and new equipment right now. [2:20:30] **Jim Michalski:** Moving on to recycling shed discussion. [2:20:35] **Ellissa Owens:** Fiber has been installed at the new recycle shed location. We now have the card reader available. We currently engage with the township in a $1,000 transaction annually for recycling services, but does the Council want to incorporate the brush pile fees for Township residents? [2:24:55] **Kris Huso:** We've given away so much for so long. We need to follow our schedule. If they're in the township, they can use recycling but must pay for the brush pile. [2:27:08] **Jim Michalski:** Moving on to K, Moose Lake Lodge and Suites discussion. [2:27:15] **Ellissa Owens:** Council received an email regarding the building official's communication with the Moose Lake Quant Suites. There’s been no communication and no movement from them regarding permits. [2:28:10] **Jim Michalski:** It’s public safety. I think we need to take action. [2:28:40] **Ellissa Owens:** They would either need to pull a permit or hire a licensed contractor. At this point, the building inspector is prepared to issue a vacancy notice if there's consensus from Council. [2:31:30] **Jim Michalski:** Consensus reached. League of Minnesota City loss control survey. [2:31:50] **Ellissa Owens:** Seven workers' comp claims from 2020 to 2023. Total cost incurred was $279,300. Property casualty losses totaled $639,000—primarily roof damage from hail. [2:33:45] **Jim Michalski:** Moving on to M, Resolution 24-06-01. [1:33:50] **Ellissa Owens:** This resolution regarding tallying write-in votes would enable us to not have to tally those votes if they were less than the lowest number of non-write-in votes. It saves election judges time. [2:34:30] **Walter Lower III:** I'll make a motion that we accept Resolution 24-06-01. [2:34:35] **Lou Ohly:** Second. [2:34:38] **Jim Michalski:** All in favor say aye. Opposed? Motion carried. 6N, Sarah Radzak resignation. [2:35:15] **Douglas Juntunen:** Make a motion we accept Sarah's resignation. [2:35:18] **Kris Huso:** Second. [2:35:20] **Jim Michalski:** All in favor say aye. Motion carried. Thank you to Sarah for her three years of service. 6O, American Legion gambling permit. [2:36:10] **Walter Lower III:** Motion to approve. [2:36:12] **Lou Ohly:** Second. [2:36:14] **Jim Michalski:** All in favor say aye. Motion carried. 6P, Moose Lake Brewing Company temporary liquor license. [2:36:35] **Ellissa Owens:** This is for the car show at Riverside Arena to benefit the Blue Line Club. [2:36:50] **Douglas Juntunen:** Motion to approve. [2:36:51] **Kris Huso:** Second. [2:36:52] **Jim Michalski:** All in favor say aye. Motion carried. [2:37:41] **[Emergency Alert System]:** National Weather Service tornado warning in this area until 7:15. Take shelter now in a basement or an interior room on the lowest floor of a sturdy building. [2:38:30] **Jim Michalski:** Let me ask the Council, you want to adjourn at this time? **Council Members:** Yes! [2:38:50] **Jim Michalski:** Motion to adjourn? [2:38:52] **Walter Lower III:** Motion. [2:38:53] **Lou Ohly:** Second. [2:38:55] **Jim Michalski:** All in favor. Thank you.