MINUTES
REGULAR MEETING
MOOSE LAKE CITY COUNCIL
(Including Closed Session)
Wednesday, September 12, 2012
City Hall
6:30 PM Regular Meeting
Call to Order: Mayor Ted Shaw called the meeting of the Moose Lake City Council to Order. In addition to Mayor Ted
Shaw, the following City Councilors were in attendance: Curt Yort, Jim Michalski, and Kris Huso. Absent – Michael
Peterson. Also in attendance: City Administrator; Mark Vahlsing, Chief of Police; Bryce Bogenholm, Tom Paull, Lois
Johnson, Eddie Palkie, Deb Mohelski, Joe Rhein, Lyle MacVey, Melissa Cox, Paul Brinkman, Scott Dahlen, Guyal
Nelson, Pat Oman,
CALL TO ORDER
Pledge of Allegiance
Motion made by Councilor Huso to accept agenda with additions seconded by Councilor Michalski. Motion carried.
CONSENT AGENDA
Motion made by Councilor Yort to accept consent agenda, seconded by Councilor Huso. Motion carried.
PUBLIC COMMENT
None received
PREVIOUSLY DISCUSSED BUSINESS
Flood Update
Tom Paull gave an update on the overall status of the flood recovery effort. First site visit is scheduled for next Tuesday,
September 18. There are 77 separate estimates need to be written for the FEMA flood claim. The 167 million dollar
flood relief bill was passed by the Legislature. Funds for long-term recovery are available from SBA. He said that only
10% of those affected have applied for SBA financing. Their programs are not just for small business owners.
Homeowners should also consider SBA programs. They offer a very low interest rate for up to 30 years for eligible
homeowners.
Mayor Shaw stated that the City had paid over $200,000 in flood related expenses.
Public Works – City Engineer, Joe Rheine stated that all lift stations are running. He has been reviewing the video from
the Sewer line televising of the flooded areas of the City. Minor repairs are also being made to streets affected by the
flood. More
Carlton County EDA Director Pat Oman reviewed the Minnesota Investment Fund program. He stated that Commercial
business loans are available offer 50% at zero interest which is forgivable, and the other 50% is at 0% interest. Loan
guidelines are very flexible. Loans can be offered for retroactively incurred financing.
City Administrator Vahlsing asked for Council approval to proceed with repairs to the compressors and electrical system
at Riverside Arena. . The arena has been thoroughly cleaned, and mold has been removed. There are only 29 days until
ice needs to be put in. Lots of help has been received from CIP and the hockey association. Mayor Shaw thanked both
groups for their assistance in helping to bring the hockey rink back to being usable.
Arena manager Guyal Nelson addressed the Council. He hopes to be at the stage of painting by October 10. Mayor Shaw
asked Administrator Vahlsing to meet with Guyal Nelson about the need to increase his hours during the remaining flood
repairs to the Arena.
Motion was made by Councilor Yort to move ahead with the repair of the compressor, electrical system and boiler at this
time, seconded by Councilor Huso. Motion carried.
Park Board
Roy Peterson Park – Mayor Shaw stated Installation of the equipment has been completed. The fences will be repaired
before the winter. Repairs will also be needed to the sidewalks. The park is open.
Administrator Vahlsing updated the Council Status of Campground repairs after flood- the campground remains closed.
The Water and Light Commission has agreed to cover the cost of the design and electric upgrades. Sebesta Engineering is
currently developing plans for the replacement of the electrical system. After the design is completed, quotes will be
sought from electrical contractors. After quotes are received the Council will have to decide if improvements will
proceed. The design process should be completed by mid-September.
Resolution 12-09-02 – Approving Post Issuance Compliance Policy for the issuance of Tax-Exempt Bonds
Administrator Vahlsing stated that Kennedy and Graven is recommending that the City adopt this Resolution due to recent
changes in the Form 8038-G, which is an informational tax return that issuers of tax-exempt governmental bonds are
required to submit to the Internal Revenue Service (the “IRS”) for each bond issue. The revised Form 8038-G has added
several new questions regarding whether the issuer of the bonds has written policies in place to (i) take action to remediate
any private use that may occur in a bond-financed facility (which can cause the bonds to be taxable) and (ii) to ensure that
the arbitrage rules are followed.
Motion by Councilor Michalski to accept Resolution 12-09-02, seconded by Councilor Huso. Motion carried.
Resolution 12-09-03. Call for sale of $750,000 Revenue Bond Sale – Transformer Purchase, Moose Lake Power
and Light Bond Sale – First National Bank of Moose Lake
Administrator Vahlsing stated that the Revenue Bonds to finance the purchase of a 750 kV electric transformer. The cost
of the transformer and installation is estimated to be $750,000. The bonds would be re-paid by the State for the MSOP
facility. The new transformer will provide additional electric capacity for the MSOP facilities. The revenue bonds would
be issued over a 5-year term and would be placed with the First National Bank of Moose Lake. The bond sale would take
place in early to mid-October.
Motion by Councilor Huso to accept Resolution 12-09-03, seconded by Councilor Michalski. Motion carried.
Amend Ordinance 109 – Personnel Policy – Safety glasses and boot reimbursement
Ordinance 109 was amended to include the reimbursement of safety glasses and boot reimbursement. The City
Administrator would approve all reimbursements.
Motion by Councilor Yort to approve the amendment of Ordinance 109 Personnel Policy to include reimbursement for
prescription safety glasses and safety boots, for street department employees seconded by Councilor Huso. Motion
carried.
NEW BUSINESS
Lyle MacVey – Northeast Service Cooperative Internet Services Agreement
Lyle MacVey provided a brief update on the status of the Middle Mile fiber project. He also reviewed the draft agreement
covering the purchase of DSL from NESC by the City of Moose Lake. It appears the monthly fee would be $450.00 for
each city building. The actual monthly cost is dependent on the agreement term and amount of data capacity. He stated
that the City could be hooked up to one building and the other buildings connected through the existing fiber system. The
hook-up fee would be $2500 per building connection. Administrator Vahlsing stated that there may be other options for
purchase of fiber that are more cost effective. Mayor Shaw stated that this item would be discussed further at the October
Council meeting.
Pat Oman – Carlton County Economic Development. Update on Moose-tec business planning process.
Pat Oman stated that Moose-tec has not made money for the City as expected. It has continued to add customers, but
despite the growth in customers it still continues showing operating losses. A plan to make major reductions must be
implemented. Mr. Oman stated that he is developing a business plan for Moose-tec. He stated that there might be options
for consultants to look at increasing profit and operational efficiency.
Set maximum 2013 Levy and date for Truth in Taxation hearing
Administrator Vahlsing reviewed impacts of various increase in the Cities proposed levy.
Motion by Councilor Yort to set the maximum 2013 levy at 5% increase, seconded by Councilor Michalski. Motion
carried.
Motion to set the Truth in Taxation meeting for Wednesday, December 5, 2012 at 6:01 p.m. and if needed to be carried
over, would be on Wednesday, December 12, 2012 at 6:01 p.m. by Councilor Michalski, seconded by Councilor Huso.
Motion carried.
Revised Mutual Aid Agreement with DOC – Moose Lake
Administrator Vahlsing stated that the Mutual Aid agreement covering response to emergencies and disasters between
DOC and the City has to be revised to reflect the flood response. The agreement allows mutual aid assistance for a 24hour period without charges. Beyond 24 hours the agreement provides that the City and state execute an amendment to
the agreement, which allows for the encumbrance of funding for reimbursement to the State. The reimbursement would
come from FEMA and the State legislature. Section 3.3 of the amendment states that reimbursement will only occur in
the event the City is able to obtain disaster assistance funding in amounts to cover the State’s expenses.
Motion by Councilor Huso to adopt the Mutual Aid Agreement with DOC, seconded by Councilor Michalski. Motion
carried.
Mutual Aid Agreement – Department of Human Services – MSOP facility
Administrator Vahlsing stated that draft Mutual Aid agreement would be between the City and the MSOP facility. It is
based the current agreement with the Department of Corrections. It covers response to emergencies and disasters between
MSOP and the City. The cost reimbursement provisions are the same as the DOC agreement. Administrator Vahlsing
recommended Council adoption.
Motion by Councilor Huso to adopt the Mutual Aid Agreement with Department of Human Services – MSOP facility,
seconded by Councilor Yort. Motion carried.
Resolution 12-09-01 – Adopting the Carlton County All Hazard mitigation plan
Chief Bogenholm informed the Council that the Carlton County Sheriff’s Department is requesting all cities adopt a
resolution in support of a countywide hazard mitigation plan. This plan is a template in concurrence with the Minnesota
Division of Homeland Security’s Hazard mitigation plans. Adoption of a countywide plan will make the County eligible
to receive FEMA hazard mitigation assistance grants. Mayor Shaw stated that it is very important that the City participate
in this process.
Motion by Councilor Michalski to adopt Resolution 12-09-01 Adopting the Carlton County Hazard Mitigation Plan,
seconded by Councilor Huso. Motion carried.
Purchase of copier for Library – Kyocera TA 258 - $3450 from Duluth Typewriter
Administrator Vahlsing stated that the Copier in the Motor Vehicle area library needed to be replaced. Administrator
Vahlsing stated that in the past the City had moved the copier from the library to the Motor Vehicle area. A new copier
would then be purchased for the Library. Administrator Vahlsing requested that the same process be followed in this
case. He stated that two 35 ppm black and white machines had been recently demoed in the library. A Sharp MN 264
costing $3750 and a Kyocera Task Alpha255 costing $3450. After demoing both machines, the library staff preferred the
Kyocera. Administrator Vahlsing recommended purchasing the Kyocera for $3450. The copier will need to come out of
contingency in the 2012 budget.
Motion by Councilor Yort to purchase the Kyocera TA 258 from Duluth Typewriter for $3450, seconded by Councilor
Huso. Motion carried.
Sunset Cemetery Lot Sale
Mayor Shaw stated that the City had a purchase agreement with Donald and Janice Larson – Lot 218, Block 6, Graves 67. The cost would be $946.00.
Motion by Councilor Huso to approve the sale of Lot 218, Block 6, Graves 6-7 to Donald and Janice Larson at a cost of
$946.00, seconded by Councilor Michalski. Motion carried.
Negotiate Employment Agreement with City Administrator – Closed Session
Mayor Shaw stated that this item would be discussed at the end of the meeting.
City Sales Tax Information
Administrator Vahlsing stated that Informational summary could be published in local newspapers. Councilor Yort
recommended that a committee of the Council meet with the administrator and develop a plan to inform the public of the
proposed sales tax. He volunteered to serve on the committee. Councilor Michalski also agreed to be on the committee.
Police Department Report – August – Chief Bogenholm.
The Chief updated the Council on the activities of the police department. He stated that August was a busy month. There
had been a high amount of thefts and burglaries, stolen cars, drug offenses. The police department recovered around
$50,000 worth of stolen property in August. He stated that 109 pounds of prescription drugs for had been collected
disposal at the Carlton County drop-off site in the police department offices.
Joe Rhein – Bolton and Menk updated the Council on engineering activities the month of August.
Contracts are signed and he will be sending out a notice to proceed for the Kenwood Avenue, and 8th Street repairs
Completion date of September 30. He stated that the stop sign on Jon Brown Drive and Clausen has been relocated.
The Sewer line televising has been completed.
Coalition of Greater Minnesota Cities 2012 annual report.
Administrator Vahlsing stated that Bruce Ahlgren had been elected President of the Coalition for 2013. He also stated
Local government aid would be one of the main issues that the Coalition lobbies for in 2012.
Minnesota Department of Health – Public Water System Report
Mayor Shaw stated that no deficiencies were listed on the report.
*Closed meeting following regular meeting for employment agreement negotiations – City Administrator. Closed under
Minn. Stat 13.01; 13D.05
Motion by Michalski to go into closed session for contract negotiations with City Administrator. Closed under Minn. Stat
13.01; 13D.05. Second Huso. Motion Carried
-Closed SessionMayor Shaw called the Council back into regular session.
Motion by Michalski to approve amended employment agreement with Mark Vahlsing, Second by Yort. Motion Carried
ADJOURN – Motion made by Councilor Huso to adjourn council meeting. Seconded by Councilor Michalski Motion
carried.
Submitted by:
Mark Vahlsing
City Administrator