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Record of Proceedings

Duluth City Council Meeting Summary - September 24, 2026

City Council — Thursday, September 24, 2026
BodyDuluth, Minnesota
SessionCity Council
DateThursday, September 24, 2026
StatusFILED
Video Record
0:00 / 40:22

Original source
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13:55

Good evening.

13:56

We're gonna get the agenda session going for the evening.

13:59

It is five sixteen, so we are a minute late.

14:02

Um the first item is actually purchasing and licensing licensing.

14:06

Uh Councillor Randor, will you read in for Counselor Joe Rock?

14:10

I sure can.

14:11

Uh, President Nephew.

14:12

Item two resolution eight thirty four is a resolution approving the issuance of a liquor license.

14:18

Are there any questions on uh item number two?

14:22

Um resolution eight thirty-five.

14:25

Um see none, and we're gonna move on to personnel and counselor Randolph, would you mind just keep rolling?

14:32

Um three, uh resolution seven ninety two is confirming the appointment of Muhammad Aton to the Duluth Public Utilities Commission.

14:40

Resolution eight forty two confirming the reappointment of Andrew R.

14:44

Straits to the Natural Resources Commission.

14:46

Resolution eight forty-three is confirming the appointment of members to the Indigenous Commission.

14:50

Resolution eight forty-five is confirming the appointment of Pezdevila to the Parks and Recreation Commission.

14:55

And resolution eight forty six is confirming the appointment of members to the Transportation Commission.

15:00

All right, thank you, Councillor Randor.

15:02

Are there any questions on items three through seven?

15:06

Um I have one.

15:08

Oh go ahead, uh Counselor Desitel.

15:13

Thank you.

15:14

Uh President Nephew.

15:15

I would like to um uh remove uh from the uh from the consent 26-80842.

15:23

That's item number four.

15:25

I will need to abstain from that vote.

15:28

All right, thank you.

15:30

And I believe Councilor Forsman usually pulls these um and tables them.

15:34

So can we just pull all the personnel items?

15:37

Uh clerk, is that correct?

15:39

Oh, good idea.

15:40

I think because these are President Nephew.

15:43

Um I think because these are just standard appointments and uh Mr.

15:47

Attan has already been interviewed.

15:49

I don't believe these get tabled, but you are correct.

15:52

Thank you for the clarification.

15:53

So let's just pull the one 842 from consent.

15:57

Um counselor Kalena.

15:59

Yeah, uh just a quick question.

16:01

I I mean I can appreciate Councillor Desitel's um concern about voting on an appointment of uh a relative.

16:09

Um what I understand of conflict of interest law, if if that's the concern, I don't think there's necessarily a conflict of interest.

16:16

Uh and uh I don't I don't know if we have legal counsel to confirm that, but uh it's just my memory of statutes in terms of so if if that matters, just to bring that to people's attention.

16:31

Attorney Enslin, um, I believe it is Councillor Desatel's husband.

16:35

Would it be appropriate to pull it?

16:37

Yes, I'm seeing a nod.

16:38

Uh yeah, President Nephew.

16:40

Uh I mean there's no reason not to pull it from consent tonight, and I can take a look at the conflict of interest issue before Monday.

16:50

Um I don't think it's inappropriate for her to abstain considering the relationship.

16:56

Um, but I I don't think anyone suspects that there's I would prefer to abstain because of the relationship in this situation.

17:06

Thank you, Councillor Desitel.

17:08

Um I always best err on the I side of caution.

17:11

Um next we are on to planning and economic development.

17:16

Um item number eight, resolution eight twenty-five, resolution authorizing the proper city officials to enter into an agreement with and accept up to $73,544.50 cents in funds from the Minnesota Department of Children, Youth and Families to provide employment and training services for supplemental nutrition assistance program.

17:37

SNAP ENT 5050.

17:40

Recipients co-enrolled in state funded employment and training programs for the period of October 1, 2026 through September 30th, 2027.

17:50

Item number nine, resolution 835, resolution vacating a portion of a retained utility and pedestrian easement in vacated 50th Avenue East in the plat of Crosley Park addition to Duluth.

18:04

Item number 10, resolution 840, resolution clarifying the terms of interim controls regarding enactment of moratoriums on certain short-term rental permits.

18:14

Item number 11, uh resolution 841, resolution authorizing the conditional pre-commitment of 228,000 in state affordability housing aid fiscal year 2027 funds to one roof community housing for the Faith Havein Apartments Rehabilitation Project.

18:34

Uh questions on items eight through 11.

18:44

Uh Councillor Johnson.

Discussion Breakdown — Share of Meeting
Energy Planning███████████████████████████████████35%
Public Works████████████12%
Public Utilities███████████11%
Affordable Housing██████████10%
Environmental Protection█████████9%
Procedural████████8%
Short Term Rentals███████7%
Personnel Matters█████5%
Land Use Planning███3%
Summary of Proceedings

Duluth City Council Meeting Summary - September 24, 2026

The Duluth City Council convened on September 24, 2026, at 5:16 PM, to address a range of items including liquor licensing, personnel appointments, economic development funding, parks grants, tax levies, a code of conduct amendment, a franchise fee ordinance with Minnesota Power, and zoning updates for lodging. The meeting featured extensive debate on the Minnesota Power franchise fee structure and its implications.

Consent Calendar

  • Liquor License (Resolution 834): Approved without discussion.
  • Personnel Appointments (Resolutions 792, 843, 845, 846): Approved as part of the consent calendar, with the exception of Resolution 842 (Andrew R. Straits reappointment) which was pulled due to a conflict of interest concern raised by Councillor Desitel.

Discussion Items

  • Personnel Appointment Conflict (Item 4): Councillor Desitel requested removal of Resolution 842 from the consent calendar because it involves her spouse. The council agreed to pull it for separate consideration. Councillor Klana noted that he did not believe a legal conflict existed, and the city attorney agreed to review the matter before the next meeting.
  • Faith Haven Apartments Rehabilitation (Resolution 841): Councillor Johnson asked for clarification. Staff confirmed that the $228,000 conditional pre-commitment of state housing funds serves as matching funding necessary for One Roof Community Housing to secure state rehabilitation funds.
  • Ingrid Tower Condition Assessment (Resolution 828): Councillor Klana inquired about future funding sources. Staff explained that the $20,000 Minnesota Historical Society grant is part of a strategy to position the city for larger implementation grants from the same source.
  • St. Louis River Public Access (Resolutions 826 & 827): Councillor Timonic requested background. Staff explained that the resolutions relate to a grant for improving public access along the St. Louis River estuary, with the St. Louis River Alliance acting as a sub-recipient.
  • Tax Levy Proposals (Resolutions 800-802, 812): No questions were raised; the levies for general purposes, parks, HRA, and DTA were presented.
  • Code of Conduct Amendment (Resolution 810): Amending standing rules to include a code of conduct; no questions.
  • Minnesota Power Franchise Fee (Ordinance 42): Councillor Desitel led a lengthy discussion, questioning why the Energy Planning Commission was not consulted and suggesting a higher residential rate (3.5%) to generate more funds for sustainability. Councillor Klana supported a residential increase, calling the fee a less regressive tax than property tax. Councillor Johnson asked about the impact on multifamily property managers. Director Salinas explained that the fee structure keeps residential at 3%, raises commercial to 4.25%, and large users to 4.75%, increasing projected revenue from $420,000 to $500,000. Staff stated no law requires Minnesota Power to pass fees to customers. Revenue will go to the general fund, with $250,000 allocated for sustainability projects. Councillor Desitel requested that future packets include clearer explanations of fund usage.
  • Lodging Code Amendments (Ordinance 40): City Manager Hobbes provided an overview, clarifying that the ordinance simplifies licensing by moving short-term rental regulation to the fire department (life safety) and correcting past errors. President Nephew emphasized this is a simplification, not a tightening.

Key Outcomes

  • Approved: Resolution 834 (liquor license), Resolutions 792, 843, 845, 846 (personnel appointments), Resolutions 825, 835, 840, 841 (planning & economic development), Resolutions 826, 827, 828 (parks), Resolutions 800-802, 812 (tax levies), and Resolution 810 (code of conduct).
  • Pulled from Consent: Resolution 842 (Andrew R. Straits reappointment) will be considered separately after a conflict-of-interest review.
  • Introduced (First Reading): Ordinance 41 (grant anticipation notes for water utility improvement not to exceed $61,630), Ordinance 42 (Minnesota Power franchise fee), Ordinance 24 (various city code revisions), and Ordinance 40 (lodging code amendments). No final votes were taken on these ordinances during this meeting.

Meeting Transcript

Good evening. We're gonna get the agenda session going for the evening. It is five sixteen, so we are a minute late. Um the first item is actually purchasing and licensing licensing. Uh Councillor Randor, will you read in for Counselor Joe Rock? I sure can. Uh, President Nephew. Item two resolution eight thirty four is a resolution approving the issuance of a liquor license. Are there any questions on uh item number two? Um resolution eight thirty-five. Um see none, and we're gonna move on to personnel and counselor Randolph, would you mind just keep rolling? Um three, uh resolution seven ninety two is confirming the appointment of Muhammad Aton to the Duluth Public Utilities Commission. Resolution eight forty two confirming the reappointment of Andrew R. Straits to the Natural Resources Commission. Resolution eight forty-three is confirming the appointment of members to the Indigenous Commission. Resolution eight forty-five is confirming the appointment of Pezdevila to the Parks and Recreation Commission. And resolution eight forty six is confirming the appointment of members to the Transportation Commission. All right, thank you, Councillor Randor. Are there any questions on items three through seven? Um I have one. Oh go ahead, uh Counselor Desitel. Thank you. Uh President Nephew. I would like to um uh remove uh from the uh from the consent 26-80842. That's item number four. I will need to abstain from that vote. All right, thank you. And I believe Councilor Forsman usually pulls these um and tables them. So can we just pull all the personnel items? Uh clerk, is that correct? Oh, good idea. I think because these are President Nephew. Um I think because these are just standard appointments and uh Mr. Attan has already been interviewed. I don't believe these get tabled, but you are correct. Thank you for the clarification. So let's just pull the one 842 from consent. Um counselor Kalena. Yeah, uh just a quick question. I I mean I can appreciate Councillor Desitel's um concern about voting on an appointment of uh a relative. Um what I understand of conflict of interest law, if if that's the concern, I don't think there's necessarily a conflict of interest. Uh and uh I don't I don't know if we have legal counsel to confirm that, but uh it's just my memory of statutes in terms of so if if that matters, just to bring that to people's attention. Attorney Enslin, um, I believe it is Councillor Desatel's husband. Would it be appropriate to pull it? Yes, I'm seeing a nod. Uh yeah, President Nephew. Uh I mean there's no reason not to pull it from consent tonight, and I can take a look at the conflict of interest issue before Monday. Um I don't think it's inappropriate for her to abstain considering the relationship. Um, but I I don't think anyone suspects that there's I would prefer to abstain because of the relationship in this situation. Thank you, Councillor Desitel.

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