This transcript appears to be from the Moose Lake City Council meeting on December 11, 2019. **Note on Speaker Context:** While the provided list mentions Ellissa Owens as City Administrator, the transcript itself documents the resignation of **Tim Peterson**, who served as the City Administrator at the time of this meeting in late 2019. Additionally, a staff member named **Katie** (likely a Deputy Clerk or Finance staffer) handles the liquor renewals and the budget presentation. [0:02] **Mayor Jim Michalski:** I'd like to welcome everyone to the regular meeting of the City Council for Wednesday, December 11, 2019. I'd like to start with the Pledge of Allegiance to the United States of America and to the Republic for which it stands, one nation. [0:36] **Mayor Jim Michalski:** The next item is the agenda. If you would look on page 2, the New Business Number 7, we have a new item which is G, which is the DME estimate. [0:59] **Mayor Jim Michalski:** And under that H, we have the liability waiver form. With that, do we have any other items for the general corrections? [1:19] **Council Member:** The building waiver form. [1:27] **Mayor Jim Michalski:** Hearing those, do we have a motion to accept the agenda? **Council Member Lou Ohly:** So moved. **Council Member Douglas Juntunen:** Second. **Mayor Jim Michalski:** All in favor say aye. (Group: Aye). Opposed? Motion carries. Thank you. We move on to number two, the consent agenda. We have the minutes—number one is the November 13, 2019, City Council regular meeting minutes. Is there any discussion or questions on the minutes? [2:02] **Mayor Jim Michalski:** Hearing none, do we have a motion to accept the minutes? **Council Member Kris Huso:** So moved. **Council Member Walter Lower III:** Second. **Mayor Jim Michalski:** All in favor say aye. (Group: Aye). Opposed? Motion carried. Moving on to 2b, which is the financial reports. We have number one, City Claims Table for November 2019. Number two is the City Financial Statements for November 2019. Any questions or comments on the financial reports? [2:43] **Mayor Jim Michalski:** Hearing none, do we have a motion to accept the financial reports? **Council Member Douglas Juntunen:** So moved. **Council Member Lou Ohly:** Second. **Mayor Jim Michalski:** All in favor say aye. (Group: Aye). Opposed? Motion carried. Moving on to number three, public comment. This time is reserved for comments from the public on matters not listed on the agenda. Please keep comments to three minutes. (Pause). Hearing none, moving on to number four, Department Reports. 4a is the Department Report for November 2019. [3:32] **Sheriff Kelly Lake:** Thank you, Mayor. As you see, we have the attached reports for last month. We had several calls for relief. I know we had an epidemic of sorts for the ECRC at the Department of Corrections. Regarding the Tahoe, I just got it back actually yesterday. I had to call a little fire through there to get it going. They just kept telling me that they're waiting on parts from the strike that was just ending and they're backlogged. It was up there for some basic reason, they were able to get the parts the next day, and it is back and running. It was all covered under the powertrain warranty. [4:19] **Sheriff Kelly Lake:** We have "Blue Santa/Cops for Kids." It's like what used to be our shop-with-a-cop. We’re doing it this year. We've been getting a lot of donations, perceived very well by my office with toys and monetary donations. We’re going to be holding that after we figure out the families. We’re going to have that here on the 23rd at 6 o'clock. We’re going to have the families come here and have a Christmas warm. Regarding the snowstorm, obviously, we all had to deal with that. [5:06] **Sheriff Kelly Lake:** The public seemed to do pretty good this last time around. We put out some notices ahead of time, which made the cars off the road. I don't think Phil had too many issues as far as getting the streets clean this time around, so thank you to the public for adhering to that to make it better for the Street Department. [5:43] **Sheriff Kelly Lake:** The other day we had a fire also, and in the process of that, I managed to get 56 grams of cocaine out of a car. Cocaine is back in the area, but he ended up with several charges. There's a large amount of narcotics and drugs coming through our town. Other than that, everything seems to be running smoothly. [6:32] **City Superintendent Phil Entner:** Mr. Mayor, members of Council. Busy month. We didn't do much for variety—we plowed a lot of snow, and everyone knows that. Water department: we treated 3.4 million gallons of drinking water in November. Wastewater collected 13.1 million gallons, which is about half the amount as last month, obviously due to the precipitation being in a different form. We finished our November discharge just shy of 39 million gallons. We are starting our December discharge run here at the end of the year through the 31st; that’ll be about 42 million gallons. [7:18] **Phil Entner:** The wastewater treatment plant is very, very busy, so we are battling that. Snow removal—yeah, everybody's sick of it. I get it. "My street's not plowed," "it's slippery," "there's a pile here." We’re on it. There's three of us in our department, and personally, I think we’re doing a good job. One thing I want to touch on: snow policy. It is very difficult to see out of these plow vehicles. They have mirrors, but it is very difficult. [8:06] **Phil Entner:** Any driver in any plow truck has a hard time seeing. Don't tailgate. If you see one, give them plenty of space. Assume they don't see you. We make frequent stops and back up frequently. Regarding Ordinance 92, if anyone has any questions or concerns, please see City Hall or myself. It helps out when cars are moved so we can clean everything up. That's about all I have. Any questions? [8:52] **Council Member Walter Lower III:** Yeah, your department—Sunday, we were open at the theater and I came up here and everything was all plowed nicely. We were able to be open for business, and that's important to us, speaking as a business owner. So, thank you very much for doing that. [9:37] **Phil Entner:** Thank you. Yeah, I think there were two of us in at 4:00 AM on Sunday. They were long days and we're tired, but I'll pass it up to the guys. [10:04] **City Administrator Tim Peterson:** Moving on to 4c, Technology/Library report. The only thing for technology—and it's in the budget—is we'll be replacing the remainder of the computers that need to be converted to Windows 10. They will no longer be providing updates for our older computers. For the last two years, we've been replacing a third at a time, but in January we will replace the final chunk. [10:48] **City Engineer (SEH):** 4d, Engineering report. The first thing we talked about was sewer lining, which we discussed at the last meeting and in the budget. We have $100,000 in our sewer budget for next year for our lining project. We're looking to go out for bid in January to make sure it gets done this summer. It’s for the large line that goes to downtown. The second thing was the trail, which we can discuss later. Finally, the well house—we’ll have more information at the January meeting regarding cost estimates and high-level design. [12:00] **Mayor Jim Michalski:** Chamber updates. Does anybody know when the Moose moves out? Tomorrow? We will find out. I know the Park Board had their Christmas Santa visit this last weekend. The note that came out by the Chamber was that it was a very well-attended event with over 100 children. Mr. Lower here had a free movie for the children. [12:45] **Council Member Walter Lower III:** It was really successful. There were a lot of people. The two things working together seemed to be a success. [13:04] **Mayor Jim Michalski:** I heard that Santa did a good job as well. Moving to number six, previously discussed business, which is the Trail Agreement. [13:51] **Tim Peterson:** Starting on page 67 is the Supplemental Letter of Agreement. This states that we are going to have SEH (City Engineer) do the design and fieldwork for the trail project. It gives an overall project description, math, and cost estimates. This is the next step in moving forward with this project. [14:20] **Mayor Jim Michalski:** Do you need approval for this agreement? **Tim Peterson:** Yes. **Mayor Jim Michalski:** Any discussion? Hearing none, all in favor say aye. (Group: Aye). Motion carried. Moving on to new business, 7a, liquor renewals. [14:42] **Staff Member (Katie):** These renewals were sent to me by the state. I forwarded them on to all the businesses and received every one of them back, including the tobacco ones, which is the next item. You have something on your desk for one that I received today. I just need your guys' approval. Chief, do you have anything regarding these renewals, concerns or issues? [15:20] **Sheriff Kelly Lake:** I don't think there's any issues with them. We just completed tobacco compliance, and all of our others were all in compliance. [15:35] **Mayor Jim Michalski:** Thank you. We're looking for an approval for 7a liquor renewals. **Council Member Douglas Juntunen:** Motion. **Council Member Lou Ohly:** Second. **Mayor Jim Michalski:** All in favor say aye. (Group: Aye). Opposed? Motion carries. Moving on to tobacco renewals. [16:07] **Staff Member (Katie):** Same thing. The only issue we had was last year with Marketplace, they failed there, but they paid the administrative fine and we haven't had any problems since. This would be for all of them in the packet plus Minute Mart. **Council Member Kris Huso:** Motion to approve. **Council Member Walter Lower III:** Second. **Mayor Jim Michalski:** All in favor say aye. (Group: Aye). Opposed? Motion carried. [16:53] **Tim Peterson:** 7c, Economic Development Authority appointment. Terry Vernon from Northwoods Credit Union. I wanted to tie the EDA to the Chamber a little bit by having a member, and he is their suggested appointment. I think he would make a great addition. **Council Member Douglas Juntunen:** Motion. **Council Member Lou Ohly:** Second. **Mayor Jim Michalski:** All in favor say aye. (Group: Aye). Motion carried. [17:42] **Tim Peterson:** 7d, John Deere ZTrak mower. This is an item in the 2020 capital budget. Phil and I reviewed where each department is at, and the Sewer Department is doing very well, ahead of budget. We could utilize this year's budget for this purchase. Our recommendation is that we purchase this lawnmower this year. We have two quotes: Moose Lake Implement and Duluth Lawn & Sport. Moose Lake Implement was the low price. [19:14] **Council Member Douglas Juntunen:** I'll make a motion we accept the low bid from Moose Lake Implement. **Council Member Kris Huso:** Second. **Mayor Jim Michalski:** All in favor say aye. (Group: Aye). Motion carried. [19:25] **Tim Peterson:** 7e, Arrowhead Transit contract. This is the same thing we approve annually. It’s the same price and same service. I think it's going really well. **Council Member Walter Lower III:** I haven't heard a single complaint. People really like having this as an option. I think it's the best form of public transportation we're going to get for a community this size. **Council Member Lou Ohly:** Motion to accept. **Council Member Douglas Juntunen:** Second. **Mayor Jim Michalski:** All in favor say aye. (Group: Aye). Motion carried. Moving to 7f, Tim Peterson resignation. [21:36] **Tim Peterson:** Yes, I appreciate the... maybe Walt can throw in some movie passes to keep my parents happy! I will be here for the next meeting as well, but yes, January 10th will be my last day. I certainly appreciate the ability to have worked here for the last three and a half years. Consistently, this council has been fantastic to work with. That is something to be proud of because it has a dramatic impact on staff and the ability for a city to move projects forward. [23:11] **Mayor Jim Michalski:** I make the motion that we accept Tim Peterson's resignation with regret. **Council Member Douglas Juntunen:** I'll second it. **Mayor Jim Michalski:** It’s been just a great working relationship. I know this council appreciates it because we've gone through a lot of change and have seen what it's like to work with someone who is easy to work with and level-headed. It's really been my joy to work with you. All in favor say aye. (Group: Aye). [24:56] **Tim Peterson:** 7g, DME estimates. We have one estimate for the arena heaters. These keep the fans warm in the stands. One of them broke and needs to be replaced. DME performs all our maintenance and installed the air handlers. I suggest we use this quote so we can get it done in a timely fashion. **Mayor Jim Michalski:** I think it's been a benefit that we have one company that knows the equipment and responds when something fails. **Council Member Lou Ohly:** Motion to accept. **Council Member Douglas Juntunen:** Second. **Mayor Jim Michalski:** All in favor say aye. (Group: Aye). Motion carried. [27:12] **Mayor Jim Michalski:** Before we move on, I want to bring up the Administrator's position process. I’d like to request the Administrator to schedule a working meeting with the council to discuss this position where that is our only agenda item. **Tim Peterson:** Great. I'll send out emails with a couple of dates for lunch. [28:43] **Tim Peterson:** 7h, liability waiver form. Each year we select that we do not waive the monetary limits. These are state statutes that set liability limits. I suggest we do not waive them. **Council Member Kris Huso:** Motion. **Council Member Douglas Juntunen:** Second. **Mayor Jim Michalski:** All in favor say aye. (Group: Aye). Reports of correspondence: Moose Lake Food Shelf thank you letter. Committee and Board minutes are listed for Power, Fire District, and Parks and Rec. [31:04] **Mayor Jim Michalski:** At 6 PM we will have the Truth in Taxation hearing. We will go over the budget and approval. I’ll go through the announcements for the January meetings. I’ll take a motion to suspend the regular meeting until 6:00 PM for the public hearing. **Council Member Douglas Juntunen:** Motion. **Council Member Lou Ohly:** Second. **Mayor Jim Michalski:** All in favor say aye. (Group: Aye). *(Recess – Meeting Resumes at 6:00 PM)* [33:48] **Mayor Jim Michalski:** Welcome everyone back. Motion to end our recess? **Council Member Lou Ohly:** So moved. **Council Member Douglas Juntunen:** Second. **Mayor Jim Michalski:** All in favor say aye. (Group: Aye). Motion to open the public hearing for Truth in Taxation? **Council Member Kris Huso:** Motion. **Council Member Walter Lower III:** Second. **Mayor Jim Michalski:** All in favor say aye. (Group: Aye). We are open for our Truth in Taxation public hearing. I received no feedback from the public prior to this. [34:37] **Mayor Jim Michalski:** All right, motion to close the public hearing? **Council Member Douglas Juntunen:** So moved. **Council Member Lou Ohly:** Second. **Mayor Jim Michalski:** All in favor say aye. (Group: Aye). We are closed. Katie is going to run through the presentation. [35:24] **Staff Member (Katie):** Nothing has changed in the general fund. Slide 9 is the summary—operating expenses and net income with a zero percent increase. Slide 13 has historical levy information. Slides 14 through 16 are the debt payments. [36:10] **Staff Member (Katie):** Water fund: we included a zero percent increase, which would result in a net loss of $10,050. The suggested rate increase is 3%, which shows the effects to the customers on the next slide. Sewer fund: same thing. The large net loss is because of the $100,000 sewer lining project. The suggested rate increase there is 3%. [38:15] **Staff Member (Katie):** For the liquor store, I went through and gauged how we are doing. I got about a $90,000 income. I increased the advertising and entertainment expenses because Elaine is doing much more of that. DMV has a net loss of $39,000, primarily due to the office remodel which uses state refund money. [40:06] **Tim Peterson:** The initial levy was set at 2%. State law prohibits you from going higher than that. My recommendation is that the budget be passed with a levy percentage increase at 0%. You will see a dollar amount increase of about $65,000, but that comes solely from increased property values in Moose Lake. The actual rate stays the same. [41:53] **Council Member Douglas Juntunen:** I'll make that motion that we have a 0% levy for a total of $683,665 for 2020. **Council Member Lou Ohly:** Second. **Mayor Jim Michalski:** All in favor say aye. (Group: Aye). [42:39] **Tim Peterson:** That revenue would be $2,225,246, and expenditures would be $2,187,103. **Council Member Kris Huso:** Motion. **Council Member Douglas Juntunen:** Second. **Mayor Jim Michalski:** All in favor say aye. (Group: Aye). [43:26] **Tim Peterson:** Next motion is for the debt service revenue and expenditures (Slide 27). **Council Member Lou Ohly:** Motion. **Council Member Douglas Juntunen:** Second. **Mayor Jim Michalski:** All in favor say aye. (Group: Aye). [44:12] **Tim Peterson:** Water fund: recommendation is a 3% increase. That increase would be about 68 cents for the average customer. **Council Member Walter Lower III:** Motion. **Council Member Lou Ohly:** Second. **Mayor Jim Michalski:** All in favor say aye. (Group: Aye). Revenue would be $261,600 and expenditures $264,150. **Council Member Douglas Juntunen:** Motion. **Council Member Kris Huso:** Second. **Mayor Jim Michalski:** All in favor say aye. (Group: Aye). [45:35] **Tim Peterson:** Sewer fund: recommendation is also a 3% increase. This includes the $100,000 for the lining project. We have enough in reserves to pay for that. **Council Member Lou Ohly:** Motion. **Council Member Douglas Juntunen:** Second. **Mayor Jim Michalski:** All in favor say aye. (Group: Aye). Revenue would be $578,700 and expenditures $689,221. **Council Member Walter Lower III:** Motion. **Council Member Lou Ohly:** Second. **Mayor Jim Michalski:** All in favor say aye. (Group: Aye). [47:06] **Tim Peterson:** Next is for Liquor (Slide 30). Revenues are $1,384,300 and expenditures are $1,294,800. **Council Member Douglas Juntunen:** Motion. **Council Member Lou Ohly:** Second. **Mayor Jim Michalski:** All in favor say aye. (Group: Aye). [48:03] **Staff Member (Katie):** The DMV budget—revenue is $2,126,900 and expenditures are $2,166,400. The net loss is for the office space redo from reserve funds. **Council Member Kris Huso:** Motion. **Council Member Douglas Juntunen:** Second. **Mayor Jim Michalski:** All in favor say aye. (Group: Aye). Motion to adjourn? **Council Member Lou Ohly:** Motion. **Council Member Douglas Juntunen:** Second. **Mayor Jim Michalski:** All in favor say aye. (Group: Aye). Meeting adjourned.