I'll call this meeting to order of the city of International Falls regular city council meeting. It's 5:30 p.m. The date is July 7th, 2025. Please rise and we'll say the pledge 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. [Music] Can be noted for the record that all
members of the council are present this evening. Thank you. We will move next to approve the agenda with any additions or deletions.
I do have one addition which I have passed out to council. Are there any other additions or deletions this evening? Seeing no further additions or deletions, uh, the mayor would entertain
a motion to approve this evening's agenda. So move. I have a motion by councelor Waggner. I'll second. A second by councelor Buller. Any discussion?
Question. I I I vote yes. Agenda is approved unanimously. Thank you. Next, approval of minutes from previous meetings. First, minutes of the Monday, June 16th,
2025 regular city council meeting, followed secondly minutes of the Monday, June 23rd, 2025 special city council meeting. I would entertain a motion to approve minute
sets one and two at this time. So moved. Motion by councelor Wagner. Second. Second. Second by councelor Holden. Discuss. Discussion on minutes one or two. Seeing no discussion, call the question.
I I I. I'll vote yes. Minutes from both meetings are approved unanimously. Thank you. Moving on to payments of claims and approval for payment of accounts
payable. I will begin reading now first with transfers. City of International Falls Transfers $85,187 to fund number 101 general fund from fund number 812 lodging tax fund.
Next, accounts payable and claims. City of International Falls claims $482,130.99. Airport Commission claims $63,6849. Airport major capital project claims $385,231.71. Total accounts payable in claims
$931,46.79. Is there a motion to approve these payments and claims? So move. Motion by councelor Wgner. Is there a second? I'll second. Second by councelor Kaylor. Discussion is open.
Question. I I I. I'll vote yes. Bills are paid unanimously. 50. Thank you. Next, we have our audience open form where an individual may come forward to discuss
topics gerain to city affairs. Uh name and address for the record and limited to 5 minutes. [Music] Good evening. Good evening. Bobby Bernett, 19006th Avenue. Um, I was
just looking at the minutes and can you tell me this um Bolton and MC Engineering Services 130,93850? Is that last month that you paid out that?
It's on page one of the minutes from last meeting. from the June 16th. Yes, I will defer that question to both Betty and Jason
and if we are unable to answer that, we will certainly get you an answer. Mayor, if I may, I'm going to have to look up on the ledger in which we paid that that excuse me, on that meeting. It's probably some of May. Okay.
If we paid it on June, the June 16th minutes, it's mostly probably May's expenditures, May items. So that that would be May and that I could I will verify that though and I will, you know, get back with you on it, but that would be my
Okay. The only reason why I'm asking is because it just seems like a lot of money for contracted services when if we're going to contract contract services like that, maybe we don't need all the people we have. Do you know what
I'm saying? And I guess that's up to you guys. But I I guess if that's a monthly fee that you're paying, that's a lot of money in my book. [Applause] the I think that
your your input's appreciated. I would like you to know that and I think the first step would be we would like to get you the information that you requested. Um some of going forward throughout the summer with some of the projects that
are open, some of those expenses are capitalized into projects like when we mill and overlay a street. Um, but much of the time they're bundled. Um, okay. Which is why we want to make sure that we get you the the pay app or the actual
Okay. With every check there's a a claim, okay, with the form and and the bill that we received and how it's allocated. All right. Thank you. Thank you. Good evening. Good evening, Sharon Bald
and Chie Zero Cedar Road. Um, so I have a question. My understanding from the last meeting is that we got $167,000 worth of insurance money back for the
band shell. And um I found out um that that was just to have people look at it. Well, we were just being reimbursed for design, whatever was happening. But there was over $700,000 that it was
actually insured with or for. But it's come to my understanding that the reason that that was held up so long was because they were changing the design of the band shell. And if that is the case,
then I don't understand why they would do that. um why they would add cost onto that. So um on top So that's that's where I'm at right now. And you and I talked to you mayor and you told me that um they're in the process they've got a design
together. So my question is, were the people who vandalized the band shell, were they ever given a demand letter of any type to pay restitution or
to be turned into their homeowners because obviously it wasn't burned down on purpose. It was an accident that got out of hand because of vandalism. And I think that that should have been turned into somebody's homeowner's insurance who was responsible or restitution or
something paid because the insurance company would pick some of that up if they had gotten a demand letter. I know this because I talked to my franchise person and they told me that. So I'm wondering what if we got letters out and if we didn't, why we didn't because it
cost the city taxpayers money and it's money we could be bringing back into our system. So, that was my question. Um, well, while you're up, I don't have the answer. I wasn't here at the time. I am commonly asked that and I'd like to hand it off to our city attorney, Chelsea Nelson.
So, the individuals that did this were juveniles, but they still go to their parents. Yes. But that's a county prosecution. When it's criminally against a juvenile, it goes against the juvenile. And that's a county prosecution. I'm not authorized to charge juveniles. So, did the county contact anyone that
you're aware of? I know they contacted them. I don't believe charges were brought. Okay. Well, I guess I'll have to get a hold of the county, but that that doesn't make sense since it's a city property and the city is paying for it, right? Am I wrong? We would be an alleged victim in that case.
But that that itself, if we did have the authority to charge that, we couldn't be the charging entity because we're also the victim. Who is who would be the charging entity? The county attorney's office. County Attorney's Office. Okay. And
who's the county attorney? Um, there's Jeff Nagowski and assistant county attorney Molly French. Okay, sounds good. Thank you very much. Have a nice night.
Seeing no further comment at this time, we can move to new business. Item one to consider request to begin the application and testing process to create an eligibility roster for the
police department with Chief Mike Kick. Chief, is this something you would like to present? Thank you. Thank you. [Music] Thank you, Mayor Councel. Fairly standard procedure. We were
notified of a possible vacancy. Um, no definitive date or anything. So, as usual, we kind of start our process will ahead of time have an eligibility roster in the event that we do have a vacancy. Um, not a request to hire anyone. just a standard protocol to to establish a list
so we're not caught off guard. Thank you. I'm here to answer any questions as well. Then that that was one of the reasons why I think it and thank you for coming up was that the process would be to start the eligibility list that's there
um in case there's movement in any which way really. So correct. Um I just want that to be understood amongst the group. Questions from council to Chief Kostic. Seeing no further questions and thank you, Chief, but no questions from
council, I would entertain a motion. I'll make that motion. I have a motion by councelor Holden to approve the request. Is there support? I'll second. Support by councelor Kaylor. Is there discussion? Seeing no discussion, we will now vote
starting with councelor Kaylor. I I I I I'll vote yes. This is carried unanimously. 5-0. Thank you, Chief. Thank you. New business. Item two, consider state of Minnesota contract
for hazardous materials response team effective July 1st, 2025 through June 30th, 2027 and authorize the mayor and city administrator to execute the contract.
[Applause] Chief, is this something that you feel requires explanation or um it has to do with our hazmat dollars for the hazmat team? This is an extension of the uh same contracts we've been in since 2015 with
the state. Uh the biggest difference this year is the amount of reimbursement available. So they upped it from60,000 a year to $80,000 a year, which is good for us. Um covers some of those expenses. Uh are of course they cover the training and
materials that we need to operate that team. And uh yeah, not much change substantive other than that. And just to promote this idea a bit because I think at times it could be misunderstood and at the same time I'd like to make sure
that I understand um that this is very important because of some of the activities we have going on uh within the city that we receive these dollars to protect our citizens from. Yep. This provides us with the training and the monitors to identify hazardous
materials unknowns or known. Um, I think the biggest misconception is we are not a cleanup contractor. So, uh, a great example of that was we had a call a week ago of somebody spilled, I think it was 200 gallons of fuel oil. Um, it was
outside of our city jurisdiction, but within our hazmat response area and, uh, the point was we knew where it was, we knew what the material was, we knew nothing was in danger, but that doesn't dictate us to go on that run. So that gets reverted over to the county or whoever for finding a cleanup contractor
to handle that. So I think that's probably the biggest misconception in the the need of the team. Thank you. Questions from councel. I would entertain a motion at this time to approve this agreement.
I'll move. Motion by councelor Buller. Second. Second by councelor Wagner. Discussion. Question. I I I I'll vote yes. Thank you, chief. This carries unanimously. 5-0.
New business. Item three, discuss correspondence from our city auditor, Ryan Schmidt of Schlenner, Wener, and Co. This is a letter that I received to put in to the council packet for this meeting. I would like to read it for the
record. This letter was written by Ryan on June 30th of this year. Mayor Dill, I am writing this letter to reiterate and expand upon a particular matter of concern which I discussed
during my presentation to the city council on June 23rd, 2025. Due to recurring operational deficits in the city's ambulance fund, the amount of cash being borrowed from the city's general fund to the ambulance fund has
grown significantly over recent years. To date, these cash advances to the ambulance fund have been accounted for as a shortterm loan. This approach explicitly indicates that the ambulance fund intends to repay the general fund.
As a result, these borrowings have had no impact on the general fund's overall bottom line or fund balance. My growing concern is that the accounting approach discussed above may no longer be representative of true
facts and circumstances. If no action is taken to address the situation, we as the city auditors will soon be forced to conclude that the amounts borrowed from the general fund to the ambulance fund cannot and will
not actually be repaid. Upon reaching this conclusion, we'll need to present the city with the following options during the audit process. First option, record permanent cash transfers into the ambulance fund to begin repaying the amounts borrowed
or to at least prevent further growth of the deficit while a more permanent solution is reached. The cash transfers could come from the general fund or other funds at the discretion of the council. Option two,
accept a modified opinion in the audit report specific to the general fund and ambulance fund. In other words, our audit report would be saying that we feel the financial statements are fairly stated with the exception of these
interfund borrowings and the related fund balances impact. This would be a deviation from the clean opinion that the city has received always received in past audit reports. Of course, neither of these options will
serve as long-term solutions to the situation. The intention of this letter is solely to inform you of the impending impact of the situation on the city's year-end financial reporting. We understand this is a difficult situation
and we encourage the city to contact us if we can be an assistance of any assistance in any way. Sincerely, Ryan Schmidt, Schlenner, Wener, and Co. Any questions or discussion from the
council? We have tentatively um called a special city council meeting for Monday night after committee of the whole will be posted for 6:00 or
um as soon as the committee of the whole meeting um is over. Um, I'd like to take this moment and I did make an addition um to the agenda that was approved this
evening. It was a letter uh that councelor Kaylor wrote Mayor Droba and his fellow counselors on October 11th, 2023, which I would like to read.
Due to the present and growing deficit in the city's ambulance fund, I would propose we as a city council set a timeline with a date of no later than March 1st, 2024 to come up with the plan to relieve this burden from the citizens of
International Falls. The city has worked in the past with our county neighbors with no solution at this time. As part of this, I would have us task the ambulance director and city administration with looking into possible solutions,
including cost, but not limited to the following. Resumed talks with Cuchaching County around a ambulance taxing district. The possibility of an ambulance area fee similar to the county sanitation fee
that is added to garbage service fees. staying our present paramedicbased system. Combination paramedic EMT teams return to a BLS system. Fire department drivers, engineers being
EMTs, paramedic based service for the city, BLSbased service for the county. Go to full-time paramedics and all volunteer fire department. no ambulance service.
I know in theory the state claims we need to have an ambulance. If we don't solve this problem, we will bankrupt as a city and we won't have money to run ambulance service or anything else. Sincerely, Pete Kaylor,
Eastward Counselor. I would like to quantify that there is numerous solutions to all of these problems, including raising taxes, cutting taxes, hiring more staff,
cutting staff, or anything that this council could come up with. The state of the city finances at this point are of deep concern and that is why uh I have made the decision to call the council
meeting on next Monday night after committee of the whole. Is there any discussion um on this topic or any other business to come before the council this evening?
I would just say we just hold off to discuss it further at the special meeting seeing if that's for and give some peop everybody to let some time to think in from the older letter that I
wrote and uh the um letter from uh our auditors which is really basically what he said when he gave us our audit more or less in the year before And we all knew, you know, sooner or later that
this was going to come to a head. And I think it has. And I think just to help catch up why we ended up after the letter, we decided that that March that we still would go with the same system
we have cuz the state was in the process of looking at some help and there was maybe some hints that maybe we would reopen be reopen negotiating with the county. Now this time down the road I
don't see those as real viable unless something changes the state last Tuesday. I attended a webinar and there is some help coming you know to help with the deficit. I don't know how much if there's so much money gets divided up
with the all the different uh ambulance um systems in the state and it's a good chunk of money but there's also a lot of I think it's like $8 million this year and seven next year um but there's also
a lot of ambulance services of all different kinds that uh are in our predicament so that'll be shared and as they also said the gentleman from the head of the EMS board says this and that's only two years things change
nothing says that we'll be coming back so that's kind of where we're at in brief but anything else if everybody else we probably wait till the meeting next Monday and it sink in thank you councelor um and that will be
the uh intent of the meeting the agenda will be forthcoming and uh Well, council will at that time begin working through various issues and ask for decorum. As we do that, um, is there any other business for the
council this evening? We will move back uh to the 5m minute window. If there is anyone uh that would like to come forward for public comment, now would be the time to do that again. [Applause]
Good evening, Mr. Mayor, counselors. Glenn Davis, 1702 15th Avenue. Uh, one question I had um the mill and overlay in Stenburg is 1.34 million. Will that
include uh fixing the structural issues underneath the surface that are causing the damage to the road? They've already been fixed maybe 5 years ago. I don't know the date and they are already
bulging up. I wanted to know and several other neighbors have asked the same question. Is that going to be addressed? I think it's a great question. Um there have been calls to me uh from that neighborhood concerned specifically
about the storm sewer in Stenburg. Um and I know that you live there, but I bring my kids there every morning to daycare and uh so familiar with the topic. Um I would ask that our city engineer Jason Fiser address that. I
would like to add one more thing that when we began working on the mill and overlay for Stenberg. The idea has been to um improve the quality of of roads or streets that that serve that that area.
And it was pointed out that at some point the sewer lines in that community have been televised and there was virtually no issues that warranted replacement. Um I will pass the rest on uh to Mr.
Fiser. Um, in that current plan, it's a full depth patch is what we have in there, not replacing the structures. We are working with the contractor though um to get a price and we would probably reduce the contract in other ways. We've
cut out other work to possibly replace the structures, but we we we're still waiting for that price for that and then we move it out of the roadway. So, we're still in the early stages of investigating. The concern from the neighbors and
myself are that if we don't address those issues, we'll be back in the same position in just a few more years and that'll be wasted money. That's a very warranted concern.
A question. Uh you read the letter different on the ambulance service and that's a concern for us all. Um that letter was written in March of 23. Um, thank you. Uh, what progress, what steps have been taken since that point of
time, uh, to help address, it was a grave concern at that point. Now we're even worse situation. Uh, what steps were being taken to address it since the letter that he called for? Well, whether there has or or hasn't,
the situation has continued to uh persist. We are down to four paramedics. We did have six that that happened I believe by attrition. Um but the if the council would like to Pete you or excuse
me councelor Kaylor you wrote the letter um not to put you on the spot but I certainly well that's just what I explained the what went on with it and we decided to stay with the system we had and like you said one of the solutions finally took
care of itself through attrition. We have EM an EMT paramedic combination. So that instead of having two paramedics at the time, like I said, at the time the decision made to stay with it, it was we're hopeful that we're going to be
back in talks at the county for some assistance and how much help the state was going to give. So, it's kind of a wait and see at that point, but obviously this is where we're at now. when it's come clear that we're on our own, it looks like.
Thank you. Um just in overall as for city finances, um I guess there's encouragement from us to look at how we're going to reduce costs and expenses so we can bring things in the line. We had a clean opinion that that was good. Uh there was
good help. That was nice. But was still the numbers. We're we're in a situation where if we don't do something, we're going to be in trouble. So, I'm asking our council to address the the issues of expenses as as opposed
to income. I think everybody sitting in this room does not want to see more drastic increases in taxes. That's why many of us are here. We want it to stop growing as to the rate that it has.
I uh thank you for your that's you. I thank you for your comments and I would uh thank you councelor. I would stick up that what you've said has been echoed amongst uh many remind oh I'm sorry Mr. Cruz.
Yeah. Alan Cruz, 8741 East Abyspo Avenue, Mesa, Arizona. Um, just in regards to the to the ambulance thing, um, you know, the one thing that I'm I've been trying to get
my head around is the fact is that how much do we spend for our services like to to serve just International Falls residents and then how much does it cost to take care of everybody else?
Because I think at least from the people that I've talked to and then for myself is is that there's almost like three issues. We don't know what we cost in relation to what everybody else costs and then the fund
and I would just encourage when you guys meet next week and is it open to the public? Unless, yes, all meetings are open to public unless they're for very specific issues.
Um, and I would just say is that I would much rather the council not have creative accounting, and I don't mean that in like a nefarious way, but just like know what know where we're at. you
know, the audit's nice and it and it paints a nice picture, but the auditor even said that, you know, he goes out of his way to create, you know, to use accounting to create a favorable outlook to make it look not as harsh. Uh, not
putting words in his mouth that's summarizing, but is I just want to know where we're at, and I think we all do. um to where if 90% of the bill is International Falls, then getting help from the county doesn't really solve a
whole lot of issues. But if the county's made, you know, if the county cooch and St. Louis is making up 40%, then that's a completely different conversation. And from the letter two years ago is state's not coming to help. Um, just like I said
with LGA is that let's not re let's not get comfortable relying on the state to chuck some money at us to get us to be quiet for two more years is let's deal with the situation on whatever that is and then as ugly as it might be. Um, and I look forward to seeing what you guys
come up with next week. And I appreciate you putting together the the meeting the mayor. So thank you. Thank you. Um, [Music] good evening. Good evening. Bobby Bernath, 19006th Avenue. Um, I
know about three weeks ago we all talked about um the police department, where they're going to be housed. Have you guys had any meetings with the county or any of that? Yes. Um I guess what's happening? Is there
anything happening that we should know about? Yes. Um it's moving along. Um okay. I think that there's optimism on both sides. Okay. Um but at the end of the day, our
department has needs. Um, everyone has needs and we hope that we can uh come to something that's fair and equitable and then uh the council will decide if it makes sense or not and uh we'll either do it or we'll take our
lumps and move on to something else. But um it it is progressing. I think that there's been at least one uh get together a week on on that. So, oh, okay. Councelor Wagner, would you echo that? Yes.
So, has, am I right if I say Krauss Anderson, have they done that inspection or anything like that? You know, on the building you were guys were going to have somebody do the inspection to to get a number on the Coutasa project, correct?
From the the general facility study from was it November? Yeah. I have to defer that to the public. That was the committee that was done but not on the old LEC but on the on the building. Yeah. Yeah.
And how much was that? I guess I can't say off the top of my head. Do you guys have any number or I don't have it in front of me. I can get it. No, but you can get it for me. Okay. I just want to know because if
we're, you know, if we spend little pieces of pie like that, eventually it ends up to be a big piece of pie. And if we're not going to do that, why why are we spending that kind of money if we're going to go with say the county or Bakus
or whoever? Do you know what I'm saying? I I just don't quite understand that. I know it's maybe only 20,000, but in my book 20,000 is a lot. If you do it five times, that's 100,000, you know. So, I I just I'd like to know
that number if you guys could get that for me. What it cost for the study? That's what you're the study. It's not the original study, but the Isn't it an extra study? Because they already did an original study. Correct. Correct.
But then wasn't there an extra study? Do you mean the the um when they provided the cost of the different things that needed to be fixed, how much that report cost? Is that what you're referring to? Yes. You mean the estimate? Is that what you're talking about? Yeah. The It's not the original, but you
guys, there was going to be another study. It was We must keep the discussion up front, please. Thank you. I'm sorry. It was supposed to be another study done after that, like in February. Wasn't
there some discussion on if we were looking into the LEC now that we would make do we study on that as far as the mold or or uh any type of was that ever tal was that one we talked about? It's been talked about um not at
the council level because there are some of those services that are available because of the work that they currently have going on for their own use whether we ever used it or not or but the original study of the cooaska
you got a number okay they gave you a number of I don't know five or whatever it was million now there was going to be another study done. Am I correct or am I not?
I'm not aware of one. I'm not aware of one. There was the study where it was broken into two stages. Okay. Is that the cost you're wondering? No.
Mrs. Bernath, are you um there was I seem to recall a time where the this was in the fall, I believe, that the initial facilities condition assessment was presented at a committee
of the whole that phased the project up to around $5 million in which then it was being looked at of how to get that facility to a movein ready or usable basis. And there was another study done, right?
Correct. I I don't I'm not I thought heard of that. I'm trying to think of the month. But what happened was that's when everybody got into an uproar. They thought that the police were going to move out to
Cuchatasa because it was approved to look at another study. If the I I would like to get this question as close to answered as we can. I'm not aware that we've gone forward with anything at this time.
I I think what might at that time if I remember it now that I'm sitting here listening to everybody talk to you about there was if we were to move forward with Carl Sanderson to start looking at doing some adjustments to what they
said would cause what we'd need to move in there. But we never really moved ahead with that once because it was like a week later or not that long after that that we decided to renegotiate with the county. So I don't think we even ever started that.
Okay. I think is what happened. Okay. Yeah. I'm sorry that problem. So no, we want to make sure that there is clarification to those um questions. So, I think that that's representative of
where we are this evening. Okay. Thank you. Thank you. Good evening. Rhonda Benedicts, 9096 Street. I was just wondering, did you ever get an answer back on the state funding for the water plant?
About things been said. I was just wondering the the council voted 3 to2 two or three meetings ago. Yeah. To move ahead with the project, right, and borrowing the funds. Um, we did have
a bonding request for state funds. Yeah. Um, to the project. There was not a bonding bill. There was a bonding bill passed in the legislature. There was not a bonding bill passed with local projects.
Um, we had the opportunity to either move ahead with the water plant project or wait another year in the hopes of getting bonding dollars. Um, which was ultimately the project has been moved ahead.
Oh, so that means you get no funding or you still could get funding in a year. very unlikely because you moved ahead. Correct. Okay. Um, as far as the ambulance go, I have a couple questions. You might not
know the answer, but a little while ago, the ambulance was not transporting people out of town. Other ambulances were coming and picking up patients. Correct. Um, I'm, if I may, we're going to be having the special city council meeting
on Monday. Um, so I'd like to keep most items on that topic to then, but um, if there's ambulance related questions of that magnitude or regard, I would like to defer to our ambulance um, to our fire chief, Chief Manassa, if
you have a specific question for that. Okay. which you're welcome to ask now. Okay. And then a few few years back, I'm going to say seven years back, um some of our doctors that were delivering babies
would not deliver babies if it was on the weekend. So, it forced patients to be transferred to other hospitals, Hibbing, um Bamiji. So even if it wasn't life-threatening or immediate danger, they they had to be
transferred. Um so that forced, you know, ambulance bills at that time. So I mean that kind of upped the ambulance intake, I guess you would say. I don't know if they're doing that now
or not, but that that was the case back then. And how long ago? That was about seven years ago. Okay. Thank you. Yeah. So, that kind of helped the ambulance along a little bit, I would say, back then.
That one I knew for sure. But anyways, okay. Thank you. Thank you. Reminders, our next regular city council meeting is in two weeks, Monday, July 21st
of this year at 5:30 p.m. There is no further business to come before the council and this meeting is adjourned.