Moose Lake Mayor Ted Shaw and city councilors welcomed newly appointed councilor Beth Virden as she took the oath of office at the Moose Lake City Council regular meeting on October 14. Virden quickly assumed her post by moving to approve the consent agenda, the first item of business. “I’m excited to start,” she quipped.

Virden replaces longtime councilor John Unzen, whose resignation was accepted in August. Council appointed Virden to the post following an interview process of three candidates in September.

On a motion from Virden council passed a resolution acknowledging the expiration of tax increment financing for the AmericInn Motel and Suites off Highway 73. Beginning in January of 2010, as required by the state, all property taxes generated by the business will be distributed by the city in the same manner as all other property taxes. With the motel value in excess of $2 million, said city administrator David Talbot, Jr., “It is a tremendous increase in value that becomes available to the general operating fund of the city.”

Talbot presented the “new and improved” water, sewer and electric Ordinance No. 152 that was prepared to supplement the existing utility Ordinance No. 126. The ordinance, revised by the city attorney, Talbot, and Deb Mohelski, office manager of the Moose Lake Power (Water and Light) Commission, allows for a lien on real property for unpaid water and light bills according to guidelines spelled out in the ordinance. The language to the existing ordinance has been revised and coordinated with the commission to match deposit practices, rules about whose name the account must list, and billing cycles.

A brief discussion ensued over whether to add the city’s broadband service to the revised utility ordinance. It was decided that since internet service does not come under the same disconnect guidelines as utility bills, broadband is not included in the ordinance.

At the request of Curt Yort, action on the revised ordinance was tabled until next month’s meeting, after councilors have more time to review the changes.

Nursing home faces possible closing

Yort opened discussion on the recent news from Mercy Hospital and Health Care Center and its developing plan to close its 84-bed nursing home and assisted living center, should a final sale agreement not be reached with Augustana Care Corporation, the company in Minneapolis looking to buy the facilities. While the current conditional agreement for the sale is due to expire on October 31, a binding agreement is largely dependent on successful negotiations of new labor agreements with unions representing Mercy’s nursing home employees. Meetings between Augustana and the unions began in July.

According to a recent letter from Mercy CEO Jason Douglas to Mayor Shaw, Mercy faces “critical financial losses currently being incurred by these operations.” If the sale agreement is not reached, Mercy “must be ready to move forward to develop a plan to close the nursing home and Kenwood Place as a timely and appropriate option.”

Yort is concerned with the possible facility closings, because “Mercy Hospital and the nursing home are vital to the city.” He feels the city should be better informed of ongoing developments between the hospital and Augustana. “It’s an important issue to the city,” he insisted.

It was decided that Shaw meet with a Mercy representative for updates on the hospital’s potential facility closings and report to council at next month’s meeting. Douglas notes in his letter, “While we recognize the concern these issues may cause... you will continue to get excellent care throughout the transition process, whether it results from a sale or an eventual plan to close.”

Sewer update

Council approved a resolution amending the Minnesota Public Facilities Authority (PFA) application from the water pollution control revolving fund to execute $245,000 in payments for work done on the municipal wastewater collection system along Lakeshore Drive. While costs for phase two are expected to eventually reach $4 million, each component to the project requires a separate loan acknowledgment.

Talbot reported on the status of the sewer expansion to the Minnesota Sex Offender Program (MSOP) facility saying, “The project is well underway.” The expansion along Lakeshore Drive is expected to be completed “hopefully before the onset of real winter,” he said.

Construction of the sewer treatment pond is set to begin in the spring of 2010, after the city has acquired the land needed for the pond expansion. The MSOP is expected to continue with the second part of its building project in the spring as well. Talbot said the state plans to cover the costs for the sewer line to the MSOP facility.

Council acknowledged a letter from the Moose Lake-Windemere Sanitary Sewer District (MLWSSD) regarding its current contract with the city for sanitary treatment services. The district highlights its need for additional sewer capacity to accommodate current customers and anticipated growth in the district.

In light of the city’s sewer expansion project currently underway, the district has been working in tandem with city council representatives over the past year toward arriving at a new agreement to provide greater sewer services for the district. The MLWSSD is expected to present a draft agreement to council in the near future.

Council accepted “with deep regret” the resignation of police officer Russell “Rusty” French, effective October 23. Shaw congratulated French on his new position with the Carlton County Sheriff’s office, saying, “He will serve the county well.”