[0:00] **Mayor Wayne Boucher**: Let's call the meeting to order and stand for the Pledge of Allegiance 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. Roll call, please. [0:15] **City Clerk Alissa McClure**: Councilor Peterson? [0:16] **Councilor Joe Peterson**: Here. [0:18] **Councilor John Geissler**: Here. [0:19] **Councilor Andy Hjelle**: Here. [0:21] **Councilor Brian LeBlanc**: Here. [0:22] **Mayor Wayne Boucher**: Mayor Boucher here. Announcements—do any council members have announcements they'd like to make? [0:25] **Councilor Andy Hjelle**: Good luck to the baseball team this week in the section finals. [0:30] **Mayor Wayne Boucher**: Thank you. And I—I'd like to thank Councilor Geissler for stepping in for me in the last meeting and doing a pretty good job. I watched from Bullhead City, Arizona, and I'll give you some comments later. Um, we'll have no public hearings, no communications to highlight. Mr. Mulder, could you give a short synopsis of the presentations we received at the pre-agenda meeting? [1:10] **City Administrator John Mulder**: So we actually had um, three of them. One of them was from Todd Hagen of Ehlers on the bond sale earlier today. Adam Smith and somebody from Braun um, talked about the roof repair that we need to do because of the ice dams and some of the insulation. They will prepare some plans and specifications um, for your approval at the next meeting. And then Eric Johnson went through um, kind of the trail from the Wellness Center to the city offices, to Stebner Park and then down to Keen Creek and then across over to Proctor. It's just kind of giving a general alignment as we proceed with that trail project. [1:55] **Mayor Wayne Boucher**: Thank you. This is the time for general public discussion. If—if anyone wishes to address the Council either in chambers or online, please start with your name and address. Is there anyone that wishes to address the Council under public discussion at this time? [2:31] **Mayor Wayne Boucher**: Last opportunity for general public discussion. If anyone wishes to address the Council, please identify yourself with name and address. Hearing none, we'll move on to motions. A motion for the temporary service area expansion application for Aad Shriners for June 24th, 2023, with proposed hours of sale from 2:00 PM till 10:00 PM contingent on all paperwork being received. Do we have a motion? [3:05] **Councilor Andy Hjelle**: I'll make a motion to approve. [3:08] **Councilor John Geissler**: Second. [3:09] **Mayor Wayne Boucher**: Motion by Councilor Hjelle, you have a second by Councilor Geissler. Mr. Mulder? [3:15] **City Administrator John Mulder**: So this is just um, the Aad Shrine wants to have an event there um, and they're going to sell alcohol in the parking lot, so they needed to expand a temporary service area. [3:28] **Mayor Wayne Boucher**: Thank you. Any questions or comments from Council? Any public input on this motion? Any public input on the motion to approve or deny a temporary service area? Any public input on the motion for the temporary service area for the Aad Shrine Temple for June 24th? Roll call, please. [4:10] **City Clerk Alissa McClure**: Councilor Hjelle? [4:11] **Councilor Andy Hjelle**: Aye. [4:12] **City Clerk Alissa McClure**: Councilor LeBlanc? [4:13] **Councilor Brian LeBlanc**: Aye. [4:14] **City Clerk Alissa McClure**: Councilor Peterson? [4:15] **Councilor Joe Peterson**: Aye. [4:16] **City Clerk Alissa McClure**: Mayor Boucher? [4:17] **Mayor Wayne Boucher**: Aye. Next we have the consent agenda, which are the minutes—approval or correction of the May 15, 2023 minutes—accounts payable and more accounts payable. Do we have a motion? [4:30] **Councilor Brian LeBlanc**: Motion to approve. [4:33] **Councilor Andy Hjelle**: Second. [4:34] **Mayor Wayne Boucher**: Motion by Councilor LeBlanc, second by Councilor Hjelle. Roll call, please. [4:36] **City Clerk Alissa McClure**: Councilor LeBlanc? Aye. Councilor Peterson? Aye. Councilor Geissler? Aye. Councilor Hjelle? Aye. Mayor Boucher? [4:40] **Mayor Wayne Boucher**: Aye. Ordinances—we have two first readings. The first is 2023-04, an ordinance amending and restating Chapter 14, Signs and Ground Signs of the Hermantown City Code, first reading. And Ordinance 2023-05, an ordinance amending Chapter 9, Utilities and Services of the Hermantown City Code by modifying the rules governing the collection on delinquent utility accounts, also a first reading. Next we'll move on to the resolutions. Resolution 2023-66, resolution approving a special use permit for construction of an accessory structure in excess of 1,200 square feet in an R3 zoning district at 3990 Ugstad Road and imposing conditions thereon. Do we have a motion? [5:50] **Councilor John Geissler**: So moved. [5:52] **Councilor Joe Peterson**: Second. [5:54] **Mayor Wayne Boucher**: Motion by Geissler, is there a second? Second by Councilor Peterson. Mr. Mulder? [5:58] **City Administrator John Mulder**: I'll let Eric Johnson speak to this. Eric? [6:01] **Community Development Director Eric Johnson**: Great, thank you very much. This is a property at 3990 Ugstad Road. It's a 4.2-acre lot. The applicant has an existing 840-square-foot garage already located on this property and he's looking to build a 672 addition to that, bringing that total to 1,512 square feet, which is greater than the 1,200 um, under the um, standard building permits with the R3 zoning. This proposed addition and the garage as well meets or exceeds all the city requirements as far as accessory structure setbacks from property lines. And as part of this, there's no business activity or residential living proposed or permitted as part of this approval. [6:45] **Mayor Wayne Boucher**: Thank you. Do you have any questions or comments from Council? Is there any public input on this resolution? If anyone either online or in chambers wishes to comment, please start with your name and address. Is there any public input on Resolution 2023-66? Roll call, please. [7:14] **City Clerk Alissa McClure**: Councilor Peterson? [7:15] **Councilor Joe Peterson**: Aye. [7:16] **City Clerk Alissa McClure**: Councilor Geissler? [7:17] **Councilor John Geissler**: Aye. [7:18] **City Clerk Alissa McClure**: Councilor Hjelle? [7:19] **Councilor Andy Hjelle**: Aye. [7:20] **City Clerk Alissa McClure**: Mayor Boucher? [7:21] **Mayor Wayne Boucher**: Aye. Resolution 2023-67, resolution approving a special use permit for grading and filling within a natural Shoreland overlay area. Do we have a motion? [7:34] **Councilor Joe Peterson**: Motion. [7:36] **Councilor Andy Hjelle**: Second. [7:37] **Mayor Wayne Boucher**: Motion by Councilor Peterson, do we have a second? Second by Councilor Hjelle. Mr. Mulder, is this another one for Mr. Johnson? [7:45] **City Administrator John Mulder**: Yes. Eric? [7:47] **Community Development Director Eric Johnson**: Great, thank you again. Uh, as you mentioned, this is a special use permit uh, for the property at 428x Birch Valley Road. This is an existing lot of record, it's 3.69 acres and it's at the um, southeast quadrant of the intersection of Birch Valley Road and Arrowhead Road. Uh, the applicant's looking to construct a single-family home and driveway on this property. There is a natural Shoreland area associated with the Rocky Run Creek which is on the extreme east side of this property. That Shoreland area encompasses about two-thirds of this subject property. Uh, the proposed house location is greater than 150 feet away from uh, that creek, so uh, it meets or exceeds all those setbacks associated with it. And we're anticipating about 1,200 square feet total of disturbance within this Shoreland area once again for the placement of this home as well as the driveway. And basically the SUP stipulates that we try to minimize any exposed soil for the least amount of time possible just for water quality associated with that body of water on the east side of the property. [8:55] **Mayor Wayne Boucher**: Thank you. Are there any questions from Council? Is there any public input on this resolution? If so, please state your name and address. Does anyone wish to comment on this resolution either in person or online? Is there any public comment on 2023-067, a resolution approving a special use permit? Roll call, please. [9:35] **City Clerk Alissa McClure**: Councilor Peterson? Aye. Councilor Hjelle? Aye. Councilor LeBlanc? Aye. Mayor Boucher? [9:40] **Mayor Wayne Boucher**: Aye. Resolution 2023-68, resolution authorizing and directing Mayor and City Clerk to execute and deliver an agreement for consulting services for right-of-way services with the SRF Consulting Group Incorporated. Do we have a motion? [10:05] **Councilor John Geissler**: Motion. [10:07] **Councilor Brian LeBlanc**: Second. [10:08] **Mayor Wayne Boucher**: Motion by Councilor Geissler, is there a second? Second by Councilor LeBlanc. Mr. Mulder? [10:13] **City Administrator John Mulder**: So this is an agreement with SRF to do um, the negotiations for the city for various easements that most likely we're going to need for the trail. Um, we may have a few that might be a road project, but primarily this is for uh, the trail. They will do the appraisals and then they will also do all of the uh, the negotiations. City Council will see um, those initial proposals um, before we start the process and then you'll actually finally approve any easements that we do acquire through this process. [10:50] **Mayor Wayne Boucher**: Thank you. Are there any questions from Council? Hearing none, is there any public input on this resolution? Any public input on Resolution 2023-68? Is there any public input on the resolution to agree to consulting services with SRF Consulting Group? Roll call, please. [11:27] **City Clerk Alissa McClure**: Councilor Hjelle? Aye. Councilor LeBlanc? Aye. Councilor Peterson? Aye. Mayor Boucher? [11:32] **Mayor Wayne Boucher**: Aye. Resolution 2023-69, resolution providing for the issuance, sale, and delivery of $1,505,000 of General Obligation Improvement Bonds, Series 2023A, and awarding the sale thereof. Do we have a motion? [11:55] **Councilor Andy Hjelle**: Motion to approve. [11:58] **Councilor Joe Peterson**: Second. [12:00] **Mayor Wayne Boucher**: Motion by Councilor Hjelle, is there a second? Second by Councilor Peterson. Mr. Mulder? [12:05] **City Administrator John Mulder**: So this is um, part of the process that we have gone through up to this point where we had the bids for the bonds today um, and um, Ehlers and Associates recommended this sale. Um, Kevin, you're here, maybe I should have deferred to you on this. So go ahead, Kevin. [12:25] **Finance Director Kevin Orme**: This is part of the city's financial plan. The city has various ways to pay for the roads. Some roads we have Municipal State Aid um, sources of funding could be assessments, the levy—of which that's what this is—water funds, sewer fund, stormwater fund, and grants. So this is for the improvements on Richard, Lindgren, Sam's Way, and Evie Drive that are happening this summer. It's about a 2.6 million dollar project. Um, the bond is for less than that; that is the proportion that will be paid by the taxpayers over the next 15 years. Again, we're using grants, stormwater, sewer, and assessments to also fund this project. There were four bids today, as Todd mentioned this morning or an hour ago. TD Securities up in New York was the low bidder at 3.55% true interest cost. Um, as part of this process, Standard & Poor's reaffirmed our AA rating, so that's what the bonds are rated at. If approved, then the next stop is we would get the money on June 22nd and use that to pay the contractor. [13:35] **Mayor Wayne Boucher**: Thank you. Any questions or comments from Council? Any public input on this resolution? Is there any public input on Resolution 2023-69? If anyone wishes to comment on this resolution, please state your name and address. Roll call, please. [14:15] **City Clerk Alissa McClure**: Councilor Hjelle? Aye. Councilor LeBlanc? Aye. Councilor Peterson? Aye. Councilor Geissler? Aye. Mayor Boucher? [14:20] **Mayor Wayne Boucher**: Aye. Resolution 2023-70, resolution authorizing and directing Mayor and City Clerk to execute an acceptance of easement agreement to the City of Hermantown from Robin E. and Douglas R. Johnson for the Ugstad Road sewer and road improvement. Do we have a motion? [14:45] **Councilor John Geissler**: Motion. [14:47] **Councilor Andy Hjelle**: Second. [14:48] **Mayor Wayne Boucher**: Motion by Councilor Geissler, is there a second? Second by Councilor Hjelle. Mr. Mulder? [14:51] **City Administrator John Mulder**: Um, as you know, we've been talking about making improvements along Ugstad Road north of uh, Anderson Road. So this is um—we have six easements that we need. Um, this is one of the first ones that we had um, the party sign, so we're asking the City Council to accept that. [15:15] **Mayor Wayne Boucher**: Thank you. Any questions or comments from Council? [15:20] **City Administrator John Mulder**: Um, we're scheduled to um, award the contract on June 20th and then work could begin after that, assuming we—but we'll only award it if we've got all the—the rest of the easements. [15:35] **Councilor John Geissler**: Thank you. Any other questions from Council? If we don't get the easements by June 20th, does that push the project back? [15:45] **City Administrator John Mulder**: Uh, potentially, because I don't want to award the contract if we don't—if we don't have those final easements in place. That gets to be a little problematic. [15:55] **Councilor John Geissler**: So what options are there for the City if we can't get one of these easements or something along those lines? [16:05] **City Administrator John Mulder**: Potentially the project gets put off and um, then we'll have to go through a process um, using the courts to get the necessary easements. That definitely pays—if that's what it takes, this project will be a 2024 project, which then potentially affects um, you know, the extension of Hat Trick Avenue because of the sewer lift station there and the cost to the project. [16:30] **Mayor Wayne Boucher**: Yes. Any other questions or comments? Is there any public input on this resolution? Any public input on Resolution 2023-70? Is there any public input on the resolution for the easement agreement? Roll call, please. [17:10] **City Clerk Alissa McClure**: Councilor Geissler? Aye. Councilor Hjelle? Aye. Councilor LeBlanc? Aye. Councilor Peterson? Aye. Mayor Boucher? Aye. [17:12] **Mayor Wayne Boucher**: Resolution 2023-71, resolution approving final plans and specifications and ordering advertisement for bids for roof installation on the Government Services Building. It has been recommended by staff that we table this resolution so that the specifications can be fine-tuned. Is there a motion? [17:35] **Councilor Brian LeBlanc**: I'll move to table it. [17:38] **Councilor Joe Peterson**: Second. [17:39] **Mayor Wayne Boucher**: Motion to table by Councilor LeBlanc, is there a second? Second by Councilor Peterson. All in favor say aye. (All say aye). Opposed same sign. Resolution 2023-72, a resolution authorizing and directing Mayor and City Clerk to execute an acceptance of easement agreement to the City of Hermantown from Paul M. Sandquist for the Ugstad Road sewer and improvement. Do we have a motion? (Motion made). Do we have a second? [18:25] **Councilor Andy Hjelle**: Second. [18:27] **Mayor Wayne Boucher**: Second by Councilor Hjelle. Mr. Mulder, this is an explanation we've already been given? [18:32] **City Administrator John Mulder**: Yeah, um, an additional easement for that Ugstad Road project. [18:35] **Mayor Wayne Boucher**: Thank you. Any questions or comments from Council? Or any public input on this resolution? Is there any public input on Resolution 2023-72? Is there any public input on the resolution in front of the Council? Roll call, please. [19:05] **City Clerk Alissa McClure**: Councilor Geissler? Aye. Councilor Hjelle? Aye. Councilor LeBlanc? Aye. Councilor Peterson? Aye. Mayor Boucher? [19:10] **Mayor Wayne Boucher**: Aye. Resolution 2023-73, resolution authorizing and directing Mayor and City Clerk to execute an acceptance of easement agreement to the City of Hermantown from David A. and Elizabeth F. Paulson for the Ugstad sewer and road improvement. Is there a motion? [19:30] **Councilor Andy Hjelle**: Motion to approve. [19:32] **Councilor John Geissler**: Second. [19:33] **Mayor Wayne Boucher**: Motion by Councilor Hjelle, second by Councilor Geissler. We've uh, had this explanation a couple of times. Are there any questions from Council? Is there any public input on this resolution? Any public input on the resolution in front of the Council? Last opportunity for public input on Resolution 2023-73. Roll call, please. [20:05] **City Clerk Alissa McClure**: Councilor Hjelle? Aye. Councilor LeBlanc? Aye. Councilor Peterson? Aye. Councilor Geissler? Aye. Mayor Boucher? [20:10] **Mayor Wayne Boucher**: Aye. Resolution 2023-74, resolution authorizing and directing Mayor and City Clerk to execute an acceptance of easement agreement to the City of Hermantown for McNutt Real Estate Holdings 2 LLC for the Hermantown Marketplace road improvement project. Do we have a motion? [20:30] **Councilor Brian LeBlanc**: Motion to approve. [20:33] **Councilor Andy Hjelle**: Second. [20:34] **Mayor Wayne Boucher**: Motion by Councilor LeBlanc, is there a second? Second by Councilor Hjelle. Mr. Mulder? [20:38] **City Administrator John Mulder**: This is a little bit different than the previous one. This is for um, the road project in the Hermantown Marketplace. Um, this is the last easement we needed—we've already awarded that contract, made me a little bit nervous um, but um, we have this final easement. And this was a temporary easement for the ability to construct Lindgren and make it a paved road, and then also to um, just a small area where a culvert is going to be sticking out onto that person's property. [21:05] **Mayor Wayne Boucher**: Thank you. Are there any questions or comments from Council? Is there any public input on this resolution? If anyone wishes to comment on Resolution 2023-74, please state your name and address. Any public comment on the resolution or acceptance of an easement agreement with McNutt Real Estate Holdings 2? Roll call, please. [21:45] **City Clerk Alissa McClure**: Councilor LeBlanc? Aye. Councilor Peterson? Aye. Councilor Geissler? Aye. Councilor Hjelle? Aye. Mayor Boucher? [21:55] **Mayor Wayne Boucher**: Aye. And before we go to a motion for a closed session, I'll add something that I forgot earlier in our meeting, and that's to thank our local legislators, Senator Hauschild and House of Representatives member Lislegard for their hard work and the benefit to Hermantown during the previous legislative session. They've uh—we've got a record amount of successes coming out of the legislature this year and it's greatly appreciated by the Council and the citizens of the community. Um, next is a motion for a closed session. A motion to close the meeting of the Hermantown City Council pursuant to Minnesota Statutes section 13D.03 to consider confidential information regarding labor negotiation strategy. Following this closed session, the Hermantown City Council will reconvene in an open session. Do we have a motion to go into closed session? [22:50] **Councilor John Geissler**: Motion. [22:52] **Councilor Joe Peterson**: Second. [22:54] **Mayor Wayne Boucher**: Motion by Councilor Geissler, is there a second? Second by Councilor Peterson. All in favor say aye. (All say aye). Oppose same sign.