This transcript features **Mayor Wayne Boucher** presiding, City Administrator **John Mulder** providing staff reports, and **Eric Johnson** (Community Development Director) presenting the final resolution. Please note: The raw transcript identifies a "Councilor Jones"; however, based on the official list provided, this role is filled by **Joe Peterson**. I have corrected the name to Joe Peterson to align with your provided context. [0:00] **Mayor Wayne Boucher:** Let's stand for the Pledge of Allegiance. Call the meeting to order. 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. Roll call, please. **Alissa McClure (City Clerk):** Councilor Peterson? **Councilor Joe Peterson:** Here. **Alissa McClure (City Clerk):** Councilor Geissler? **Councilor John Geissler:** Here. **Alissa McClure (City Clerk):** Councilor Hjelle? **Councilor Andy Hjelle:** Here. **Alissa McClure (City Clerk):** Councilor LeBlanc? **Councilor Brian LeBlanc:** Here. **Alissa McClure (City Clerk):** Mayor Boucher? **Mayor Wayne Boucher:** Here. Uh, announcements. Do any councilors have announcements? Uh, I'd like to pass on one from Paul Senst, our City Street Superintendent, that winter parking is now in effect between 2:00 AM and 10:00 AM. [0:47] **Mayor Wayne Boucher:** Every day, uh, until April 15. And, uh, it's official that our snowy road season is longer than our break from Daylight Savings Time. Uh, Daylight Savings Time will go back in April. So, um, public hearing. Mr. Mulder? **John Mulder:** We have a public hearing on the assessment roll for the construction of Road Improvement District number 538, Richard Avenue and Lyren Road. So, um, the city started, uh, the review of improvements to these roads in the marketplace as early as, um, 2017 when we initially did a feasibility study. And we looked at the possibility of, um, constructing, um, that [1:34] portion of Richard that was not constructed and then upgrading Lyren from a gravel road to a paved road. And so that started back in 2017. Um, and it was in December of '21 where the city accepted the feasibility report and then we had a number of steps where we, um, had a public hearing in January of 2022 and then ordered the project at that point in time. Um, the design work was done in '22 and then the construction, um, was this year. Um, we are just finishing up some of the construction now. Um, all the paving is done except for, uh, just a few sections that's planned on being finished tomorrow. Um, we looked at the assessments [2:20] through this process and, um, the benefit that would be derived from this improvement to those parcels. We have 16 different parcels that were assessed. All the parcels that, um, were assessed $30,000 for those improvements except for the one at Kwik Trip and the Uniforms Unlimited store, where there's just a short frontage road. And the reason that one is different from the other ones is that they did not front any of those other roads in the marketplace, but just that frontage road. And that frontage road was not going to cost in excess of $60,000, so we reduced that assessment to $10,000 just for those two parcels. Um, tonight will be the public [3:05] hearing. We do have one objection. Um, my suggestion, I think, is we're going to try to schedule that objection hearing for 4:30 on the 20th. Um, so we'll lead off the pre-agenda meeting, um, on that night with that, that objection too. Um, and so, um, this would be the time for people to comment on the assessment process. If anyone is here to comment on the assessment process for District number 538, Richard Avenue and Lingren Road, please either speak up if you're online or step up to the podium if you're present in chambers. Any objections that are filed during this hearing need to be in writing and need to be to the City Clerk [3:51] before the close of the hearing, which will be fairly soon. Is there anyone that wishes to speak to the Council in reference to Road Improvement District number [4:11] 538? This will be the last opportunity for speaking to the Council on this project. If you wish to speak, please start with your name and address. **Mayor Wayne Boucher:** With no public input, we will close the public hearing and move on to Communications. Mr. Mulder, you have one highlighted from the Minnesota Peace Officers Board of Standards and Training. **John Mulder:** Yeah, they were here and, um, did a review of the city's, uh, policies and licensing and all of that stuff on October 18th. And, um, the, um, Police Department passed all of those compliance reviews. **Mayor Wayne Boucher:** Thank you. Uh, presentations. Could you give us a short summary of the Special Revenue budget and Enterprise fund presentation? **John Mulder:** Yeah, so Kevin presented on the Special Revenue budget. Special Revenue budgets are those budgets where we have dedicated revenue for a specific purpose. [5:13] The exception to that is HEDA where we do levy, um, some money for the HEDA operations and we're increasing that levy 5% or about $7,000. Um, the Enterprise funds are those, um, funds that are designed that the revenue, um, covers all of the costs, um, similar to, um, we treat that almost like a business enterprise and that's the Water, Sewer, Storm Water, and Street Light funds. Um, we are increasing the rates, um, for those to keep up with some of our expenses, particularly as it relates to water purchases from the City of Duluth and WLSSD charges for sewer. So, um, Kevin presented those. Um, you'll have final approval of the budget, um, as early as [5:59] December, I think it's the 4th—um, the first meeting in December following the public hearing—um, and then or you can wait until two weeks later to adopt those budgets. **Mayor Wayne Boucher:** Thank you. Uh, public discussion. This is a time for individuals to address the Council about items not on the agenda. We will have, um, time during items that are being voted on for the public to address that specific subject. Is there anyone in chambers that wishes to speak to the Council about items not on the agenda? If so, please step to up to the podium and start with your name and [6:47] address. **Shauna Jokinen:** Hello, I'm Shauna Jokinen, 5119 Cedar Ridge Drive. Um, and I just wanted to discuss the arena design plans, um, a little bit. Um, I appreciated the conversation that went on and the difficult questions that were asked. I know the community has some of those same questions, so it's important that we're asking them and, um, using the tax dollars, um, the best way we can. Um, I did have some concerns about the arena design that was presented last week. Um, just felt real that the core functions of the arena were not included, um, that they were more of an afterthought where this arena design [7:33] should have started. You know, similar to when I built my house, I kind of decided where my kids would sleep first and where my kitchen was going to go and how my groceries were going to get from my car to my kitchen. Um, I feel like those core elements of an arena were just left aside and I think it's important that we take the time to go back and make sure this is done well. Um, I don't agree that you should just push forward because it could cost more. Um, pushing forward on these projects out of fear is not always the right way to go about it. Um, I'd rather—I think many community members feel like taking that [8:20] extra time to make sure this is done right and built in a way that down the road expansion—if someone were to come forward with another plan for future expansion or different elements—that could still be added. And I think the current estimated plan really has limitations to the hockey program, but it also has limitations to the School District and community use of the building. Um, I have a child in hockey, but that will be for another handful of years. Um, my youngest is the only one who plays and after she graduates, I don't know how much of this building will be usable to me. Um, so just something to look at moving forward. Um, I [9:06] did have questions about Kraus-Anderson and just timelines and how they handled the project. Is there an option to bid out the construction—different elements of that? Um, Kraus-Anderson is kind of known as a premium builder, but maybe we can't afford that. Maybe we need to look at builders who are a little more economical. Um, we don't need a fancy arena, but we need something that is functional—um, functional for many different groups who use the arena or hope to use it in the future. Um, so I just really appreciate the time, um, all of you have taken to look at this project and make sure it's done well, um, and look forward to being a part of that design and fundraising [9:53] portion, um, moving forward. Um, I think things are looking great, but I'm leery about pushing forward too fast without making sure all the details are in place. So thank you for your attention. **Mayor Wayne Boucher:** Thank you. Thanks. Is there anyone else that wishes to address the Council at this [10:24] time? Is there any other public input for the Council this evening? With that, we will close public discussion. We have a motion: a motion to approve or deny the following On Sale Intoxicating Liquor License, Marcus Midwest LLC, doing business as Lake Cinema, 4351 Stebner Road, and that is On Sale and Sunday liquor. Do we have a motion? **Councilor John Geissler:** Motion to approve. **Mayor Wayne Boucher:** Motion by Councilor Geissler. Is there a second? **Councilor Joe Peterson:** Second. **Mayor Wayne Boucher:** Second by Councilor Peterson. Mr. Mulder? [11:11] **John Mulder:** This is a new liquor license, um, for this establishment. Um, this would allow them to, um, um, sell alcoholic beverages, um, at the movie theater, not unlike, um, the, um, setup that they have in Duluth as well. **Mayor Wayne Boucher:** Thank you. Do we have any questions or comments from Council? **Councilor Brian LeBlanc:** I'd be initially hesitant, but it looks like the Police Department supports it. So they do a standard background check on the people? Just as long as it's still a safe place for our young people to go and hang out. **Mayor Wayne Boucher:** Any other questions or comments? Any public input on this [11:57] motion? Is there any public input on the motion for an intoxicating liquor license for Marcus Midwest LLC, doing business as Lake [12:15] Cinema? Is there any public input on the motion in front of us? Roll call, please. **Alissa McClure (City Clerk):** Councilor LeBlanc? **Councilor Brian LeBlanc:** Aye. **Alissa McClure (City Clerk):** Councilor Peterson? **Councilor Joe Peterson:** Aye. **Alissa McClure (City Clerk):** Councilor Geissler? **Councilor John Geissler:** Aye. **Alissa McClure (City Clerk):** Councilor Hjelle? **Councilor Andy Hjelle:** Aye. **Alissa McClure (City Clerk):** Mayor Boucher? **Mayor Wayne Boucher:** Aye. Next is our consent agenda. Consent agenda includes minutes approval or correction of the October 16th, 2023 City Council continuation minutes and accounts payable. Approved General City Warrants from October 16, 2023 through October 31st, 2023 in the amount of $2,778,872.22. Do we have a motion? **Councilor Andy Hjelle:** Motion to approve. **Mayor Wayne Boucher:** Motion by Councilor Hjelle. Is there a [13:03] second? **Councilor Joe Peterson:** Second. **Mayor Wayne Boucher:** Second by Councilor Peterson. Roll call, please. **Alissa McClure (City Clerk):** Councilor Geissler? **Councilor John Geissler:** Aye. **Alissa McClure (City Clerk):** Councilor Hjelle? **Councilor Andy Hjelle:** Aye. **Alissa McClure (City Clerk):** Councilor LeBlanc? **Councilor Brian LeBlanc:** Aye. **Alissa McClure (City Clerk):** Councilor Peterson? **Councilor Joe Peterson:** Aye. **Alissa McClure (City Clerk):** Mayor Boucher? **Mayor Wayne Boucher:** Aye. We have no ordinances this evening. We have resolutions. Resolution 2023-153, resolution authorizing the City of Hermantown to sponsor a grant funding request via the Minnesota Department of Transportation Local Road Improvement Program associated with the reconstruction of the Hermantown Road. Do we have a motion? **Councilor Andy Hjelle:** Motion to approve. **Mayor Wayne Boucher:** Motion by Councilor Hjelle. Is there a second? **Councilor Brian LeBlanc:** Second. **Mayor Wayne Boucher:** Second by Councilor LeBlanc. Mr. Mulder? [13:50] **John Mulder:** So this is a grant application for the Local Road Improvement Program, similar to what we did in the Hermantown Marketplace. But this would be for, um, Hermantown Road between Pine and Orchestra/Drum. And the idea there is to improve pedestrian access, um, improve the traffic there, improve the road, and then also potentially allow for better development at the Ingwell site. **Mayor Wayne Boucher:** Thank you. Any questions or comments? **Councilor Brian LeBlanc:** Um, I just would like to say now before it gets to it maybe a year from now, that I don't think the people that live on that stretch of road should be assessed for this particular one. I see more this is more of an investment by the city to, um, try to better the Ingwells property and have better access to the trails. I don't think that road needs to be replaced, so I don't think it's fair to assess people that live on that road if [14:35] we move forward with this. **Mayor Wayne Boucher:** Thank you. Anything else? Is there any public input on this [14:51] resolution? Is there any public input on resolution [15:05] — any public input on our request to sponsor a grant funding [15:15] request? Roll call, please. **Alissa McClure (City Clerk):** Councilor Peterson? **Councilor Joe Peterson:** Aye. **Alissa McClure (City Clerk):** Councilor Geissler? **Councilor John Geissler:** Aye. **Alissa McClure (City Clerk):** Councilor Hjelle? **Councilor Andy Hjelle:** Aye. **Alissa McClure (City Clerk):** Councilor LeBlanc? **Councilor Brian LeBlanc:** Aye. **Alissa McClure (City Clerk):** Mayor Boucher? **Mayor Wayne Boucher:** Aye. Resolution approving Cooperative Agreement with St. Louis County SAP 069-606-31, construction of Culvert replacement project on County State Aid Highway number 6, Maple Grove Road, between Trunk Highway 2 and County State Aid Highway 13, Midway Road, within the City of Hermantown corporate limits. Do we have a motion? **Councilor Brian LeBlanc:** Motion to approve. **Mayor Wayne Boucher:** Motion by Councilor LeBlanc. **Councilor John Geissler:** Second. **Mayor Wayne Boucher:** Second by Councilor Geissler. Mr. Mulder? [16:00] **John Mulder:** So this is simply, uh, St. Louis County is going to do a culvert, um, on one of their roads. Um, because they're using, um, State Aid dollars, they need municipal consent for this. **Mayor Wayne Boucher:** Thank you. Any questions or comments from Council? Is there any public input on this resolution? Is there any public input on the resolution for the Cooperative Agreement with St. Louis County on culverts between Highway 2 and the Midway Road? Is there any public input on resolution [16:57] 2023-155? Resolution approving Cooperative Agreement with St. Louis County. They intend to undertake a Microsurface project on various paved roads and we would cooperate by getting in on their contract for the Arrowhead Road within the Hermantown corporate limits. Do we have a motion? **Councilor John Geissler:** Motion to approve. **Mayor Wayne Boucher:** Motion by Councilor Geissler. Is there a second? **Councilor Joe Peterson:** Second. **Mayor Wayne Boucher:** Second by Councilor Peterson. Mr. Mulder? **John Mulder:** So, um, St. Louis County will prepare the plans and go out for the, um, bid and, um, manage the contract for this, um, um, surface, uh, improvement on Arrowhead Road in 2024. **Mayor Wayne Boucher:** Thank you. Any questions or comments [17:44] from Council? **Councilor Andy Hjelle:** Do we know why that's the end point on the Filkey? **John Mulder:** Yeah, that's where the construction for Ugstad and Arrowhead just stopped. **Councilor Andy Hjelle:** Oh, okay. It'll go up to the new pavement there? Big bump in the road there. **Mayor Wayne Boucher:** Um, any other questions or comments? Is there any public input on this resolution? Any public input on resolution 2023-155? Last opportunity for public input on the resolution agreeing with St. Louis County and cooperating on a microsurface [18:30] project on the Arrowhead Road. Roll call, please. **Alissa McClure (City Clerk):** Councilor LeBlanc? **Councilor Brian LeBlanc:** Aye. **Alissa McClure (City Clerk):** Councilor Peterson? **Councilor Joe Peterson:** Aye. **Alissa McClure (City Clerk):** Councilor Geissler? **Councilor John Geissler:** Aye. **Alissa McClure (City Clerk):** Councilor Hjelle? **Councilor Andy Hjelle:** Aye. **Alissa McClure (City Clerk):** Mayor Boucher? **Mayor Wayne Boucher:** Aye. Resolution 2023-156, resolution approving the issuance of a Special Use Permit for grading and filling within a National Shoreland Overlay area at 3983 Ugstad Road. Do we have a motion? **Councilor Andy Hjelle:** Motion to approve. **Mayor Wayne Boucher:** Motion by Councilor Hjelle. Is there a second? **Councilor Joe Peterson:** I'll second. **Mayor Wayne Boucher:** Second by Councilor Peterson. Mr. Mulder, should we have Mr. Johnson address this? **John Mulder:** That would be great, thank you. [19:07] **Eric Johnson:** Great, thank you very much, Mr. Mayor and members of the Council. Uh, this is a Special Use Permit at 3983 Ugstad Road. It's an existing 2.65-acre lot that is on the west side of Ugstad just north of Split Rail Drive. Uh, the property owner, who is the applicant, is seeking to subdivide this property at a future date so a, uh, parcel can be gifted to a relative for the construction of a new home. There is an unmapped tributary that starts to the north of this. The city has encountered this, uh, unmapped tributary, uh, some on some other projects. Uh, when [19:42] this project came forward to the city, uh, staff did verify with the DNR that this is indeed an unmapped tributary to the Rocky Run. So what that does is necessitates a Special Use Permit for grading and filling within this area. Uh, so far the indications have shown that the proposed home will be outside of the Shoreland area, at least from the building standpoint, uh, but the driveway will be within that Shoreland area and there'll be plus or minus 9,000 square feet of Shoreland impact associated with that. Once again, this is something that is permitted under our ordinance assuming a Special Use Permit is issued. **Mayor Wayne Boucher:** Thank you. Any questions or comments from Council? Is there any public input on this resolution? If so, step forward to the podium or raise your hand online. [20:33] Any public input on resolution 2023 [20:42] 156? Last opportunity for public input on the approval of the Special Use Permit for grading and filling within a National Shoreland Overlay area. Roll call, please. **Alissa McClure (City Clerk):** Councilor Geissler? **Councilor John Geissler:** Aye. **Alissa McClure (City Clerk):** Councilor LeBlanc? **Councilor Brian LeBlanc:** Aye. **Alissa McClure (City Clerk):** Councilor Peterson? **Councilor Joe Peterson:** Aye. **Alissa McClure (City Clerk):** Councilor Hjelle? **Councilor Andy Hjelle:** Aye. **Alissa McClure (City Clerk):** Mayor Boucher? **Mayor Wayne Boucher:** Aye. Um, no closed session this evening. We need a motion to recess. **Councilor Joe Peterson:** Motion to recess. **Mayor Wayne Boucher:** Motion by Councilor Peterson. Is there a second? **Councilor John Geissler:** Second. **Mayor Wayne Boucher:** Second by Councilor Geissler. All in favor say aye. **Council (In Unison):** Aye. **Mayor Wayne Boucher:** Opposed? Same sign. [Meeting recessed]