[0:00] Jim Michalski: I'd like to welcome everybody to the Moose Lake Regular City Council meeting, Wednesday, March 11th. Please stand for [the Pledge of Allegiance]. [0:30] Jim Michalski: Next for approval of the agenda, with one exception: cross out "interim city administrator discussion" and replace that, please, with Resolution 20-3-2. [0:49] Jim Michalski: So we have a motion? [Motion made]. And a second? Any discussion? All those in favor, aye? Opposed? Motion passed. Consent agenda: we have February 12, 2020, City Council regular meeting minutes, and we also have the financial reports from February: financial payables and financial statements for February 2020. Right now, we do not have a liquor store profit-loss statement due to a computer outage. So I need a motion for the consent agenda. [Motion made]. Is there a second? There is a motion and a second. Any discussion? All... [1:36] Jim Michalski: ...those in favor, aye? Opposed? The motion passed. Public comment: this time is reserved for comments from the public on matters not listed on the agenda. Please keep your comments to three minutes. [Music/Pause]. As you can see in the packet, the police department had a very busy month. [2:14] Ellissa Owens: 160 calls of service this past month. They spent five hours at MSOP, two hours with the Department of Corrections, and four hours at ECRC. Also, in the Chief's letter, it looks like there are some counterfeit twenties, tens, and a hundred-dollar bills going around. They advise everyone to make sure that the bills they are receiving are real. If you have any questions, you can contact the Moose Lake Police Department. There are also phone scams going around, so make sure that you know who you're talking to. Next, we have the Public Works Superintendent report. [2:59] Phil Entner: Mr. Mayor, members of the Council. Another busy month. To kick off, your Water Department distributed 4.0 million gallons of drinking water in the month of February. Obviously, you see that is up a little bit; we currently have nine services running to prevent freezing, which is an additional about 330,000 gallons a month of extra usage through that. Sewer Department: we're at 10.20 million gallons of wastewater collected in the month of February. The treatment system is fully winterized, so there was nothing happening out there this last month. We will be starting our first discharge. Our sanitary sewer program that we do—I've turned it into a yearly thing, you always hear me talking about it—we’re starting on that in April. That’s 20,000 feet. That's the biggest section of the city. It will include the entire "S-wheel" and then half the residential areas. We will be starting that fairly close to the end of April, once it warms up a little bit more and we can stand to be out there for eight hours or so. Street Department: pothole filling started this week. I know potholes are bad; they’re everywhere. If you have a specific issue on your mind, get a hold of the Public Works Department or City Hall. We do the best we can, so I'm glad to get you on the list. I appreciate all your comments and criticisms. Catch basins are all de-iced and open up; everything is good, water's going where it’s supposed to be, and snow is melting. [4:33] Phil Entner: We did report our estimated salt usage for the 2020-2021 winter season. We're down considerably this year from previous years, so I brought that number down just a little bit. It gives us a leeway since it's through the state bid program; we were able to purchase from 80% to 120% of our allotment for the year. This year we were way under. We'll have a credit with MnDOT because we reached the 80% quantity, so we hold that credit over until the following year and then work that off throughout the year. A couple of extras: frozen water/sewer line policy. I know it's warm out and people are starting to get out, but I tell you what: the frost is still in the ground and things are still freezing up. So please keep an eye on that. It is the responsibility of the property owner and the resident to monitor the temperature of their water to avoid freezing. If there are any questions, get a hold of Public Works or City Hall and they'll get you to me. We’d much rather work through the issue together. And then the last thing here: March 26th, I will be in Minneapolis representing you guys. I was asked to present at the MPCA conference. I'll be discussing impacts of I&I (Inflow and Infiltration) throughout the community. We'll be discussing how it impacts the collection system, the wastewater treatment system, the financial impacts on the city, and then some of the success stories. One of our big ones I’m going to bring up is how we now have a lining program in place and how we're spending money on updating our infrastructure. That was a huge step for the City of Moose Lake. It's a lot of money, but we're definitely making progress. So yeah, I'll be down there in two weeks. That's all I've got. [6:53] Jim Michalski: And you saw the school technology letter and the library report. The City Engineer is not here today. Chamber of Commerce update: I just attended a meeting today regarding their website. For previously discussed business: Legacy of Excellence. [7:24] Kendra: My name is Kendra and I really appreciate the opportunity to come and talk to you guys today about "Legacy of Excellence." It is a new foundation for our school. We can look at this from multiple angles regarding all the wonderful things that can come from it. Obviously, as parents, we want to support our children and give them the best opportunities possible above and beyond what our school district provides. Also, supporting the wonderful teachers that we have, keeping good educators in the community, and supporting those that are giving back to it already. This is an opportunity to bridge with the community and give the community a voice in what they want to see done for our school and our children. If you don't mind, I'll just read our mission statement: "In partnership with our community, Legacy of Excellence is a foundation that supports creative and innovative programs in School District 97 which enable individuals to reach their full potential as learners, participants, citizens, artists, athletes, and contributors to our community. The Foundation also awards scholarships to students who impact our community and influence our school district. Legacy of Excellence provides resources for unique experiences and special opportunities that enrich the learning experience." As you can see, even though we are a new foundation, it really gives us an opportunity to grow as the needs of our school occur. It differentiates us from maybe the PTA, who looks at the school body as a whole. We fund individual initiatives—anything from reimbursing those coaches that are buying shoes for kids in sports who maybe can't afford them, to giving families a break or support for camps for kids with handicaps to help them reach their full potential. This year, our goals were to finish getting funding for the school playground for early childhood. Being the first year, though, we have start-up costs for the lawyer and all the legal paperwork. I guess that's why we are here today: to ask for the city's support and any donation you could provide. We are able to give tax deductions. Do you guys have questions for me about it? [10:14] Jim Michalski: What other revenue streams have you received so far? [10:14] Kendra: So far, we've had one event, and that was more to get the word out to the community. We did a fun family day located at the school. We received a profit from that, though I'm not sure of the exact money-wise amount yet. That was our first one. Hopefully, each year we'll do one, maybe a winter fun family day to get kids out of the house and get that sense of community. It's another opportunity to get community members into our school to see what a beautiful facility we have. We are going to be starting in April, in collaboration with Hope Lutheran, a fundraiser throughout the community. That money, though, they want to go directly to the playground. With the foundation, we can channel money if somebody wants to donate to something specific. Probably this summer at alumni gatherings, we'll ask for donations. There have been multiple alumni looking for places to donate to the school previously, and it kind of gets lost in the general fund, so the Superintendent says this would be a really great place for alumni to donate. Then we've got one more hopefully really fun adult-only type of event probably at the end of June in collaboration with the PTA. I hope to see you all there. [12:08] Douglas Juntunen: This would be going towards the playground and the kindergarten classes? [12:08] Kendra: I would say after we do our fundraiser here in April with the church, I think that's going to satisfy the playground for the year. So we would like to give to families in need of after-school programs or different things like that. But we ultimately still have our costs for the legal fees coming in, and so that most likely is what the city donation would go towards. [12:42] Jim Michalski: We can table this until we have a full council next month. We're missing a couple of members today. [12:55] Kendra: I think we're probably good unless you want me to come back, but I don't think I need to. I forgot to mention my awesome board: myself, Mike Hull, Sasha... Ryan, Jill St. Pierre, and Nikki Radzak has joined our board as well. We've got a really great team working together. We weren't sure if we were supposed to request a certain amount. [13:41] Jim Michalski: This is the first year that we've received this, so we don't really have any guidelines. [13:41] Douglas Juntunen: I'm going to throw out $5,000, and whatever you can do would be very much appreciated. [13:41] Jim Michalski: The ones that we usually do are around $1,500 for a year. We'll appreciate anything. [14:19] Kendra: Thank you so much. [14:19] Ellissa Owens: That's all I have on that. [14:19] Phil Entner: Yes, that's all I got. [14:19] Jim Michalski: Any discussion on the garage bids? [14:19] Ellissa Owens: So what Phil and I did—well, Phil did—is he got three bids from some local contractors: Beutel, Utah, and Land Logic. He also thought long and hard about what we could do with that building. It's just too big to move, which is why we didn't get any bids on moving it; it would cost more than the building is worth. I don't know if Phil has anything to add. [15:06] Phil Entner: Yeah, so we have two bids to do the demolition of the buildings. I believe the slab will be taken care of by whoever we hire for the well house. We did look into renting a machine, but even with renting garbage containers and equipment, it was over $4,800 for us to do it ourselves. It looks like Beutel Excavating is the lowest bid at $3,456. [16:13] Jim Michalski: Okay, we have a motion to take Beutel's bid for $3,456? [Motion made]. Is there a second? [Seconded]. Any discussion? All those in favor, aye? Opposed? Motion passed. [16:13] Ellissa Owens: These were to purchase one set of nets instead of the two sets that were originally requested. I just wanted to make sure everyone was okay with me purchasing one set, and then if the Baseball Association wants to purchase the second set, they are more than welcome to do so. These would be community nets that stay at the arena. They are not specifically for the school; they are for the younger kids' baseball as well. [17:33] Lou Ohly: What was the actual cost? [17:33] Ellissa Owens: $968. [17:53] Jim Michalski: Any discussion? A motion? [Motion made]. And a second? Any discussion? All those in favor? Opposed? Motion passed. New business: Resignation. [18:50] Jim Michalski: I make a motion to accept the resignation of Officer Jim [Michalik]. Is there a motion? [Motion made]. Second? Any discussion? All in favor, aye? Motion passed. Resolution 20-3-1: the sale of General Obligation equipment certificates. [19:37] Ellissa Owens: This is the resolution that the lawyers prepared for me. I included the fee schedule and my course of action. I'm going to talk to Ryan [McKeon] about what grants, even if it's a little bit, will help towards this so it's not all coming out of the general fund. At the end of each fiscal year, I will probably bring to you guys a suggestion on putting more towards the principle. [20:23] Jim Michalski: Are there any questions by the Council? A motion for the resolution? [Motion made]. Second? Any discussion? All in favor, aye? Motion passed. 2019 Mercy Hospital update. [20:23] Hospital Representative: Thank you for granting me a few minutes. You have the statement of revenue and expenses and the balance sheet in your packets. Basically, as you can see, between 2018 and 2019, expenses are going up and revenues are not. Our operating loss was $1.2 million for the last year. We did have non-operating revenue which includes the district levy, so we had a final operating loss of $57,000. Regarding the levy, we have four criteria we look at to discontinue it: operating margin, capitalization, debt coverage ratio, and days of cash on hand. Currently, we’re only meeting one of those. These indicators were from the last time the levy was discontinued back in 1990. Unfortunately, over the last three years, we haven't made as much progress as we would like. This leads to the big thing: Mercy Hospital sent out an RFP looking to partner with a potential health system. There were six systems interested: Essentia, Marshfield Clinic, St. Luke’s, Community Memorial, and CentraCare. We got five proposals back. We decided to go with Essentia. It was clearly the best option. [23:29] Hospital Representative: The primary drivers behind this decision are: first, a declining inpatient market share—there’s been a 50% decline since 2008. Second, the healthcare industry has declining reimbursement rates from insurance companies. Hospital CEOs’ top priorities are mostly related to reducing costs because there’s not much revenue growth for a rural hospital. Also, it’s hard to recruit physicians to rural areas. The goals of our partnership with Essentia would be to retain jobs, recruit specialty care physicians, and install "Epic," which is an integrated medical record system. We’re currently on Meditech. Epic allows for seamless record sharing with systems like Mayo. Unfortunately, the price tag for Epic is $3 to $5 million, and Mercy doesn't have that kind of cash. Also, under this proposal, Essentia would take over 100%, thereby eliminating the tax levy. The levy is scheduled through December 31st of this year; our goal for the transition is July 1st. If Essentia takes over, the hospital board would go away. I’d love to stay independent, but in healthcare, it’s just not the case anymore. We started meeting with Essentia in November and we're making good progress. We’re negotiating to save as many jobs as we can. We also have an Essentia urologist starting services here in March. If you have questions, I’d be happy to answer them. We did hire Mike [Gidley] as CEO recently, and I can set up a meeting if any of the counselors or the Mayor would like to discuss specifics. [28:57] Jim Michalski: Once they take over, all that property belongs to Essentia? [28:57] Hospital Representative: Correct. They’d be assuming the debt as well, which is about $38 million. Essentia is a non-profit. The big thing is retaining jobs and expanding services. It’s a tremendous facility; we are lucky to have it in a rural setting. It's not an easy decision, but the board still has to vote yes or no. [30:30] Douglas Juntunen: I wonder, once Essentia takes over 100%, if it starts to struggle, wouldn't they have an easier time shutting it down than if it were local? [30:30] Hospital Representative: We don't know what the future brings, but there is just as much risk if we don't change anything. We can survive short-term, but beyond five years, it’s not looking good because insurance companies are fighting any way they can to not pay hospitals. When you have a small hospital, we don't have the resources to fight big insurance companies. [32:01] Jim Michalski: I will ask Ted [Shaw] when he gets back next week if he wants to set up a meeting with Mike. [32:47] Ellissa Owens: I know this is another $1,500 for hydrant flags. I wanted to make sure you guys knew we researched this. There are 100 hydrants. They can put these flags up when they are flushing this spring. I don't know if you guys want to make a motion. I was wondering if Phil has a preference. [33:17] Phil Entner: Yes, might as well; they’re the best we have. [33:58] Jim Michalski: Resolution for the DMV cabinets and office equipment we no longer need? [33:58] Ellissa Owens: Yes, just to put it on auction like we've done in the past. We're going to try and make some of the stuff work for the new renovation, but this is just in case. [34:43] Douglas Juntunen: Our first priority is to try to use it here, and then we can auction it. [34:56] Jim Michalski: We need a motion for Resolution 20-3-2. [Motion made]. Seconded. Discussion? All those in favor, aye? Motion passed. [35:42] Ellissa Owens: With that, I should let you guys know next week the DMV will be closed for the office renovation. We’re hoping it’ll only take a week. [36:13] Jim Michalski: The Police Chief is now here. We did go through your report; is there anything you'd like to discuss? We talked about the counterfeit bills. [36:13] Kelly Lake: There have also been a lot of license plates and tabs being stolen off people's cars. Just for the community to be aware—if they see anything, let us know. [37:00] Jim Michalski: We have the minutes from January 28, 2020, Moose Lake Water and Light organizational and regular meetings. February 12, 2020, Economic Development Authority. February 24, 2020, Planning Commission. And March 2nd, Parks and Rec. Any questions? [37:46] Ellissa Owens: For lifeguards, we're going to start looking. I'm going to contact Barney Hall to see if he's interested. [37:46] Jim Michalski: Announcements: Regular City Council meeting April 8th at 4 p.m. Moose Lake EDA is Wednesday, April 15th at noon. Water and Light Commission, Tuesday, March 24th at 3 p.m. Moose Lake Housing and Redevelopment Authority, Monday, April 13th at 11 a.m. Moose Lake Area Fire District meeting is Tuesday, April 14th at 6:30 p.m. Moose Lake Park Board is Monday, April 6th at 6:30 p.m. And the Library meeting is the 13th at 1 p.m. If there's nothing else... [39:20] Jim Michalski: Motion to adjourn.