City Council Meeting, December 7, 2020

City of Hermantown's December 7, 2020 City Council Meeting.

Based on the context provided and the content of the meeting (which corresponds to the Hermantown Truth in Taxation hearing from late 2020), here is the transcript with speaker names added. **Note on Council Members:** While your list includes Councilors Hjelle, Peterson, and LeBlanc, the transcript explicitly identifies **John Nelson** and **Grant Hauschild** as the members present and participating in motions alongside Councilor Geissler. *** [0:00] **Wayne Boucher:** Since we're not all in one place, we'll forego the pledge of allegiance and have a roll call. Councilor Geissler? [0:08] **John Geissler:** Here. [0:09] **Grant Hauschild:** Here. [0:10] **John Nelson:** Here. [0:12] **Wayne Boucher:** Mayor Boucher, here. Any announcements from council members at this time? Councilor Geissler? [0:20] **John Geissler:** No, none for me. [0:21] **John Nelson:** No. [0:22] **Grant Hauschild:** No, thank you. [0:24] **Wayne Boucher:** Um, public hearing tonight. We have a public hearing on Truth and Taxation. I'll turn this over to Mr. Mulder for an introduction. [0:36] **John Mulder:** So, to—um, tonight's uh, hearing is on the [0:46] 2021 property taxes, um, in the amount of $6,502,851. Um, Kevin, I don't know if you want to talk about the budget a little bit before we allow people to start start speaking to it. [1:10] **Kevin Orme:** Thank you, John. Yeah, tonight is our Truth and Taxation hearing. It's an annual um, hearing we do in the first uh, meeting in December. Um, so what we're proposing today is a levy in the amount of $6,502,851, as Mr. Mulder said. Uh, typically, um, we start the budget process uh, April, so this has been about a eight-month process that we've gone through and preparing [1:32] um, both the budget and the levy for 2021. Um, this year as everyone is aware we're in a pandemic and so that has affected um, both the process and it has affected the amount we're proposing today. Um, the city has a financial management plan for several years now and as part of that plan, um, we had basically a systematic plan of how and when we're going to do things. We have uh, taken steps to change that plan because of COVID, like many municipalities across the country. So we have taken intentional steps to reduce the amount that we're proposing. Um, the amount that our financial management plan as—as far as an effective tax rate [2:18] showed—it showed a 2021 effective tax rate increase of 8.64%. Um, we have lowered that down to 1.96%. Uh, again due to the pandemic and due to the economic times. Um, the—both the effective tax rate, the total dollars levied, the percent increase of development reduced. Um, we have uh, gone through this several times and have given the pieces of this budget and the pieces of this levy to the council over the last several months. Should the council decide to take action on tonight, this would then set the levy and we would notify the county and that would be the city's portion of the tax statements that you will receive [3:03] early in 2021. The county and the school district go through the same process and so their amounts could vary or will vary from ours, and so those three components put together would then increase or then show any increase or decrease in the amount of taxes you'll pay in 2021. So I certainly welcome any questions from the Mayor and Council, but that's kind of the process and where we stand going into this public hearing tonight. [3:37] **Wayne Boucher:** Any questions from councilors? [3:40] **John Geissler:** None for me. [3:42] **Grant Hauschild:** Yes, a quick question, John? Do we know when the school board and the county are potentially going to be approving their portion? [3:49] Do we have any idea? [3:58] **Kevin Orme:** Yeah, every—every entity has until the end of the year to approve it. So I'm guessing the school board will try either this coming Monday or the two weeks after. [4:06] **Grant Hauschild:** So we could potentially be the first ones? [4:08] **Kevin Orme:** No, the county had theirs on 11/23 and 11/30. The school district is scheduled for 12/14. [4:18] **Grant Hauschild:** Okay. [4:19] **Wayne Boucher:** Councilor Nelson, any questions? [4:21] **John Nelson:** No. [4:22] **Wayne Boucher:** My only comments are uh, the two things that are part of this hearing are the tax levy for 2021 [4:34] of $6,502,851 and this general fund budget in the amount of $6,288,201. Uh, levy and budget for the following year. Uh, tonight we're not able to deal with any questions people might have on their property values, but we could deal with those in another—another way later. Mr. Mulder, anything? [5:08] **John Mulder:** I don't have anything further. [5:10] **Wayne Boucher:** With all comments and presentations for the beginning of the public hearing, I will now open the meeting up to public discussion. If anyone wishes to comment on the Truth and Taxation [5:19] hearing, please start with your name and address. Is there anyone that wishes to comment? [5:35] (Silence) [5:36] **Wayne Boucher:** We'll call for a second opportunity for public comment for the Truth and Taxation hearing on the public property tax levy for 2021 and the 2021 Hermantown city budget. If anyone wishes to comment, please start with your name and address. [5:59] **Joe Wicklund:** Mr. Mayor, Joe Wicklund here. We did have two folks come into the meeting uh, late. They're both muted on their end, so if they'd like to unmute they certainly can. [6:15] **Wayne Boucher:** Thank you, Joe. We will have a third and final opportunity for comment on the Truth and Taxation hearing. Is there anyone present on the online meeting that wishes to comment on the 2021 city tax levy and 2021 city budget for Hermantown? [6:44] **Wayne Boucher:** With no public comments, I would entertain a motion for 2020-161: Resolution adopting the final 2020 property tax levy collectible in 2021 in the amount of $6,502,851. [7:02] **John Geissler:** Motion to approve. [7:04] **Wayne Boucher:** Motioned by Councilor Geissler. Do we have a second? [7:07] **Grant Hauschild:** Second. [7:08] **Wayne Boucher:** Second by Councilor Hauschild. Any discussion among councilors? [7:14] **John Geissler:** Uh, just for me, uh, just the thanks for uh, all the hard work from the administration and finance department. Uh, yeah, trying times for sure, so [7:31] a lot of hard work's gone into it by all. So, thank you. [7:38] **Wayne Boucher:** Thank you. Any other comments? [7:41] **John Nelson:** I would echo that. Thank you for all the hard work on that, Kevin, especially. [7:47] **Wayne Boucher:** Okay, with no other comments we'll have a roll call. Councilor Hauschild? [7:53] **Grant Hauschild:** Aye. [7:54] **Wayne Boucher:** Councilor Nelson? [7:55] **John Nelson:** Aye. [7:56] **Wayne Boucher:** Councilor Geissler? [7:57] **John Geissler:** Aye. [7:58] **Wayne Boucher:** Mayor Boucher, aye. [8:03] Next is Resolution 2020-162: Resolution adopting the final 2021 city general fund budget in the amount of $6,288,201 and overall budget of $20,475,930. Do we have a motion? [8:27] **Grant Hauschild:** Motion. [8:28] **John Nelson:** Second. [8:30] **Wayne Boucher:** I didn't hear the motion—it was covered. [8:33] **Grant Hauschild:** Motioned by Hauschild. [8:34] **Wayne Boucher:** Thank you. And Nelson had the second? [8:36] **John Nelson:** Yes. [8:37] **Wayne Boucher:** Any comments from Council at this time? [8:49] With no comments, we'll have a roll call. Councilor Nelson? [8:54] **John Nelson:** Aye. [8:55] **Wayne Boucher:** Councilor Geissler? [8:56] **John Geissler:** Aye. [8:57] **Wayne Boucher:** Councilor Hauschild? [8:58] **Grant Hauschild:** Aye. [8:59] **Wayne Boucher:** Mayor Boucher, aye. Next we'll move to Communications. Mr. Mulder, are there any of these that you need to highlight tonight? [9:11] **John Mulder:** No, there's just three items there, all just for your information. [9:16] **Wayne Boucher:** Thank you. Public Discussion: This is the time that any individual can address the council about any item not on the agenda. We ask that you limit your time to three minutes per person. Is there anyone present at the meeting that wishes to address the council about any item not on the agenda at this [9:36] time? [9:44] **Wayne Boucher:** Do we have any public discussion for the Council tonight? I will note that there will be time for public discussion on each motion and resolution throughout the agenda, but those are for those specific items only. Is there any public discussion of a general nature to the Hermantown City Council tonight? Hearing none, we will move on to the Consent Agenda. Do we have a motion for the Consent Agenda? [10:14] **John Nelson:** Motion to approve. [10:16] **John Geissler:** Second. [10:18] **Wayne Boucher:** Motioned by Councilor Nelson, second by Councilor Geissler. Roll call, please. Councilor Geissler? [10:25] **John Geissler:** Aye. [10:26] **Wayne Boucher:** Councilor Hauschild? [10:27] **Grant Hauschild:** Aye. [10:28] **Wayne Boucher:** Councilor Nelson? [10:29] **John Nelson:** Aye. [10:30] **Wayne Boucher:** Mayor Boucher, aye. [10:37] We have no general motions and ordinances. We will move on to Item 12: Resolutions. Resolution 2020-163: Resolution approving the CARES final funding report. Do we have a motion? [10:55] **John Geissler:** I'll make a motion to approve the uh, CARES final funding report. [11:00] **John Nelson:** I'll second. [11:02] **Wayne Boucher:** Motion by Councilor Geissler, second by Councilor Nelson. Mr. Mulder? [11:06] **John Mulder:** So we had uh, just over $733,000 from the federal government in CARES dollars. We focused on city needs and our—the needs of our community partners. [11:22] And we end up spending $553,000, and we turn back the remaining amount to St. Louis County, and we need to do that by November 15th. So, we also as part of that—our community partners with the fire department, which we gave $176,000 um, in PPE and equipment and dealing with COVID. We spent $61,000 at the Y for extra staffing, cleaning, and some technology upgrades to deal with COVID. And then finally, just over $10,000 with the Chamber of Commerce for improved technology, remote work, and also uh, cleaning um, items. [12:11] **Wayne Boucher:** Thank you. Any council comment on this? Councilor Geissler? [12:17] **John Geissler:** Um, just again thank you for the staff and administration for putting together a nice use of this money for certain things and sharing it and getting it out for some of our community partners. Thank you. [12:31] **Wayne Boucher:** Councilor Nelson? [12:33] **John Nelson:** I agree with John Geissler's comment. Thank you. [12:36] **Wayne Boucher:** Thank you. Councilor Hauschild? [12:38] **Grant Hauschild:** Yeah, I agree, and I look forward to the new technology helping residents connect with our city. Thank you. [12:47] **Wayne Boucher:** Is there any public input on this matter? [12:57] Second call for public comment on this motion. Hearing no public input, we'll move to a roll call. Councilor Hauschild? [13:08] **Grant Hauschild:** Aye. [13:09] **Wayne Boucher:** Councilor Nelson? [13:10] **John Nelson:** Aye. [13:11] **Wayne Boucher:** Councilor Geissler? [13:12] **John Geissler:** Aye. [13:13] **Wayne Boucher:** Mayor Boucher, aye. Resolution 2020-164: Resolution authorizing the disposal of surplus city property. Do we have a motion? [13:28] **John Nelson:** Motion to approve. [13:30] **Grant Hauschild:** Second. [13:32] **Wayne Boucher:** Motion by Councilor Nelson, second by Councilor Hauschild. Uh, this is a surplus squad car that's [13:43] near the end of its useful life. Mr. Mulder? [13:48] **John Mulder:** Yes, um, this is um—we get rid of a squad car just about every year, so this is one of the squad cars we're getting rid of. [13:57] **Wayne Boucher:** Thank you. Any questions or comments from council? [14:02] **John Geissler:** No comments. [14:03] **John Nelson:** No comment. [14:04] **Grant Hauschild:** No, thank you. [14:06] **Wayne Boucher:** Is there any public comment on this motion? Another call for public comment on Motion 2020-164. With no public comment, we will move to a [14:28] roll call. Councilor Nelson? [14:33] **John Nelson:** Aye. [14:34] **Wayne Boucher:** Councilor Geissler? [14:35] **John Geissler:** Aye. [14:36] **Wayne Boucher:** Councilor Hauschild? [14:37] **Grant Hauschild:** Aye. [14:38] **Wayne Boucher:** Mayor Boucher, aye. Resolution 2020-165: Resolution authorizing the disposal of surplus city property. Do we have a motion? [14:52] **Grant Hauschild:** So moved. [14:53] **John Nelson:** Second. [14:55] **Wayne Boucher:** Motion by Hauschild, second by Nelson. This is the disposal of a surplus utility truck from our utility department. Mr. Mulder? [15:06] **John Mulder:** That's correct. [15:07] **Wayne Boucher:** Any questions or comments from Council? [15:10] **John Geissler:** No comments for me. [15:11] **John Nelson:** No comment. [15:14] **Wayne Boucher:** Is there any public input on this matter? No one out there would like to see us keep this truck for a while? With no public input, we will move to a roll call. Councilor Geissler? [15:32] **John Geissler:** Aye. [15:33] **Wayne Boucher:** Councilor Hauschild? [15:34] **Grant Hauschild:** Aye. [15:35] **Wayne Boucher:** Councilor Nelson? [15:36] **John Nelson:** Aye. [15:37] **Wayne Boucher:** Mayor Boucher, aye. Resolution 2020-166: Resolution receiving preliminary engineering report and calling for a public hearing for street improvement district number 539. Do we have a motion? [15:52] **John Nelson:** Motion to approve. [15:54] **John Geissler:** Second. [15:56] **Wayne Boucher:** Motion by Nelson, second by Geissler. Mr. Mulder? [15:59] **John Mulder:** So this is uh, the feasibility report [16:01] that you had ordered back in September, um, for the possibility of constructing a road in between the BP gas station and Centricity Credit Union—Drosophila Drive—near Highway 53. We will have a um, informational meeting with the landowners on December 22nd to review the project with them, and then we'll hold the public hearing um, on January 4th. [16:34] **Wayne Boucher:** Thank you. Any questions or comments from Council? Councilor Geissler? [16:40] **John Geissler:** No questions. [16:41] **John Nelson:** No. [16:42] **Grant Hauschild:** No questions. [16:43] **Wayne Boucher:** Is there any public input on this matter? Anyone in the public wishes to address this motion? [16:49] Any public input on Motion 2020-166? [16:58] With no input, we will have a roll call. Councilor Hauschild? [17:03] **Grant Hauschild:** Aye. [17:04] **Wayne Boucher:** Councilor Nelson? [17:05] **John Nelson:** Aye. [17:06] **Wayne Boucher:** Councilor Geissler? [17:07] **John Geissler:** Aye. [17:08] **Wayne Boucher:** Mayor Boucher, aye. Resolution 2020-167: Resolution authorizing and directing Mayor and City Clerk to approve partnership sponsor for the City of Hermantown to attend the 2021 Duluth and St. Louis County at the Capitol Days. Do we have a motion? [17:34] **John Geissler:** Motion to approve. [17:36] **Grant Hauschild:** Second. [17:38] **Wayne Boucher:** Motion by Councilor Geissler, second by Councilor Hauschild. Mr. Mulder? [17:42] **John Mulder:** This is uh, similar to what we've done in the past, um, a partnership sponsorship um, just to be part of the St. Louis County Days. [17:53] **Wayne Boucher:** Thank you. Any questions or comments from Council? Councilor Geissler? [17:57] **John Geissler:** Not for me. [17:58] **John Nelson:** No. [17:59] **Grant Hauschild:** No, thank you. [18:02] **Wayne Boucher:** Uh, we may have a different structure to the meeting this year, uh, in that it could be an online meeting, but uh, we'll go forward with however it's planned. Any—any uh, public input on this matter? Any member of the public wishes to comment? Any public comment on 2020-167? With no public comment, we'll move to a roll call. Councilor Nelson? [18:36] **John Nelson:** Aye. [18:37] **Wayne Boucher:** Councilor Geissler? [18:38] **John Geissler:** Aye. [18:39] **Wayne Boucher:** Councilor Hauschild? [18:40] **Grant Hauschild:** Aye. [18:41] **Wayne Boucher:** Mayor Boucher, aye. Resolution 2020-168: [18:49] Resolution approving final plans and specifications and ordering advertisement for bids for 2021 road improvement district number 536. We have a motion? [19:04] **John Nelson:** Motion to approve. [19:06] **Grant Hauschild:** Second. [19:08] **Wayne Boucher:** Motion by Councilor Nelson, second by Councilor Hauschild. Mr. Mulder? [19:12] **John Mulder:** So this is part of our 2021 road project uh, improvement project for Sunbee and Swan Lake roads. As you recall, um, we have a cooperative agreement with St. Louis County, so they're doing all of the engineering work and doing all of the um, construction engineering as well. So they're going out for bids um, on this project. [19:34] The—uh, their estimate came in at $408,000, which was just slightly higher than our original estimate, but we had some money in the construction contingency. So, um, they'll go out for bid um, in January and will award the bid sometime in February for a spring construction. [20:00] **Wayne Boucher:** Thank you. Any questions or comments from Council? Councilor Geissler? [20:05] **John Geissler:** No questions. [20:06] **John Nelson:** No. [20:07] **Grant Hauschild:** No questions. [20:08] **Wayne Boucher:** Is there any public input on this matter? Any member of the public that wishes to comment? [20:16] Another call for public input on 2020-168. [20:26] With no public input, we'll move on to a roll call. Councilor Geissler? [20:31] **John Geissler:** Aye. [20:32] **Wayne Boucher:** Councilor Hauschild? [20:33] **Grant Hauschild:** Aye. [20:34] **Wayne Boucher:** Councilor Nelson? [20:35] **John Nelson:** Aye. [20:36] **Wayne Boucher:** Mayor Boucher, aye. Resolution 2020-169: Resolution approving change order number four for sewer improvement district number 448. We have a motion? [20:53] **John Geissler:** Motion to approve. [20:55] **John Nelson:** Second. [20:57] **Wayne Boucher:** Motion and a second. Mr. Mulder? [20:59] **John Mulder:** So the original contract was set to expire or supposed to be done by December 31st of this year. Um, we did get a late start because of the um, waiting for some permits from the [21:12] Army Corps of Engineers, and then we also had some delay because of COVID-19. So we are pushing back the completion date to August 31st of next year. [21:29] **Wayne Boucher:** Thank you. Any questions or comments from councilors? Councilor Geissler? [21:34] **John Geissler:** No questions. [21:35] **John Nelson:** No. [21:36] **Grant Hauschild:** No questions. [21:37] **Wayne Boucher:** And I have nothing. Is there any public input on Motion 2020-169? [21:50] Any public input on this resolution? With none, we'll have a roll call. Councilor Hauschild? [22:00] **Grant Hauschild:** Aye. [22:01] **Wayne Boucher:** Councilor Nelson? [22:02] **John Nelson:** Aye. [22:03] **Wayne Boucher:** Councilor Geissler? [22:04] **John Geissler:** Aye. [22:05] **Wayne Boucher:** Mayor Boucher, aye. Resolution 2020-170: Resolution approving pay request number nine for sewer improvement district number 448 to Utility Systems of America Incorporated in the amount of $118,902.95. Do we have a motion? [22:33] **John Nelson:** Motion to approve. [22:35] **Grant Hauschild:** Second. [22:36] **John Geissler:** Second. [22:38] **Wayne Boucher:** Motion by Councilor Nelson and—sorry, Councilor Geissler. Councilor Hauschild, I'll just beat you—all right, couple of seconds. Um, Mr. Mulder? [22:48] **John Mulder:** This is just the next pay request for the Section 24 sewer trunk line. [22:54] **Wayne Boucher:** Thank you. Do we have any questions or comments from councilors? Councilor Geissler? [23:01] **John Geissler:** Um, just a comment—if any public's listening, that project is still ongoing from our previous discussions and that hopefully that sewer line will be up and running uh, by around the first of the year. [23:17] **Wayne Boucher:** Great. Councilor Nelson? [23:20] **John Nelson:** No, thank you. [23:21] **Wayne Boucher:** Councilor Hauschild? [23:22] **Grant Hauschild:** No. [23:23] **Wayne Boucher:** Is there any public input on this matter? Is there any member of the public present that wishes to comment on Resolution 2020-170? [23:41] With no public input, we'll move to a roll call. Councilor Nelson? [23:48] **John Nelson:** Aye. [23:49] **Wayne Boucher:** Councilor Geissler? [23:50] **John Geissler:** Aye. [23:51] **Wayne Boucher:** Councilor Hauschild? [23:52] **Grant Hauschild:** Aye. [23:53] **Wayne Boucher:** Mayor Boucher, aye. And next we need a motion to recess. [23:54] **John Geissler:** Motion to recess—nobody's going to beat me to that! [23:58] **John Nelson:** Second. [24:01] **Wayne Boucher:** Motion by Councilor Geissler, second by Councilor Nelson. All in favor say aye. [24:07] **Council members:** Aye. [24:08] **Wayne Boucher:** Opposed, same sign. Thank you all, have a nice night. [24:23] **Council members:** Thanks.