DRAFT – These minutes are not official until approved at the next regular City Council meeting.
City of Bigfork
Regular Meeting April 11, 2006
Members Present: Mayor Amy Tendrup, Jean Lexvold, Lonnie Kacon, Dick Salmi and Amy Pifher
Absent: None
Also Present: City Engineer Julie Kennedy, Jim Manske, Warren & Caroline Welch, Gene Collins, Gus David, Clint Sova, Public Works Superintendent Mark Maki, Gene Rajala, Nathan Hale, David Schminkey, Bob Zimmer, Corky Hastings, David Asher, Dan Infante, Robert Carlson, Mike Francisco and Ron Root
Mayor Tendrup called the regular meeting to order at 6:00 p.m.
Public Forum: Tendrup called for anyone wishing to address the Council to please do so at this time. Gus David offered his opinion on the City purchasing public works equipment. He compared the purchase of this equipment vs. hiring the work out, to renting vs. owning your home. He felt it was a good investment for the City to purchase equipment rather than continuing to rent and contract out for services. Gene Rajala approached the podium and stated that he respectfully disagreed. He noted that the City had gotten three quotes a few months ago but that the quotes were not on similar equipment and only one quote for each brand of machine was obtained. He felt that quotes should have been obtained from more than one dealer for each brand of machine. Gene Collins addressed the Council and added that he agreed with Rajala. He brought up issues of maintenance and storage. He also stated that the City needs to think about what type of work needs to be done with the equipment and if the equipment is sufficient for those tasks. He stated the City is better off hiring someone to come in with appropriate equipment and do the job right. As there were no further comments from the audience, Tendrup closed the public forum.
Tendrup noted a few changes to the agenda including moving the personnel committee recommendations and audit report up to immediately after the public works department report and moving the cemetery issues to directly after Julie Kennedy under old business. Tendrup noted that she had many phone calls regarding bids for the liquor store and wanted to add that item at the end of old business. A motion was made by Lexvold, seconded by Pifher to approve the agenda with the changes noted, motion carried unanimously (MCU).
Consent Agenda Motion by Pifher seconded by Lexvold to approve the consent agenda as follows:
#1- approval of the minutes of the March 14th regular and March 28th special City Council meetings
#2- approval of the Police Report for March 2006
#3- approval of the City Clerk’s Office Report for March 2006
#4- approval of the Budget Report for March 2006
#5- approval of the claims for payment in the amount of $36,402.29 including the March 15th, and 30th payrolls
MCU. (copies of documentation relating to any consent agenda item are available at the City Clerk’s office)
Public Works Department Report: Maki reported that culverts had been steamed out and opened up, including County-owned culverts. He stated that many culvert ends are buried in dirt or had been plowed over. Next year, culvert ends will be marked to avoid this problem. Monthly meter readings were taken. Chlorine injectors and vacuum breakers were cleaned at the water treatment plant. Samples from the airport wastewater system were delivered to Virginia and paperwork for the Clerk was picked up from the City of Cohasset at the same time. A report of odor complaints was investigated and two hydrants were flushed to fix the issue. The airport bathroom was bailed out after a plugged toilet was reported. RK Construction was contacted regarding grading and snow removal services. Manholes and inflow & infiltration checks were completed. A sample pit at the airport was dug. Hasps and locks at the sewer ponds were repaired as required by the Minnesota Pollution Control Agency (MPCA). Garbage was picked up on streets and roadways. Maki attended training in Minneapolis and passed the test for his wastewater certification. Salmi asked where we were at on the mowers. Maki reported that we have the Snapper mower for use around the City and have repaired the SKAG to use at the airport for now. The Snapper has 2500 hours on it and we should budget for a replacement for this machine in 2007. Salmi asked about the potholes that were being filled with Class V. Maki reported that now that the temperatures were warmer, he had picked up some cold patch and would be using that for any further patching. Tendrup thanked Maki for his report.
Personnel Committee Recommendation: Tendrup read the recommendation from the Personnel Committee regarding the interview process and their hire recommendation for the position of Casual Maintenance Laborer. The Committee is recommending the hire of Mr. Michael Love. They further recommend that the other applicant, Mr. Byron Zielke, be strongly encouraged to apply for the position of Water/Wastewater/Maintenance Assistant. Salmi stated that he wanted to see the report on the applicants to see what their criteria is. Tendrup stated that while Salmi was certainly welcome to view the documentation, the Personnel Committee had already conducted the interviews and was making their recommendation. Personnel Committee member David Schminkey offered his opinion and reviewed the recommendation being made by the Committee. Motion by Pifher to approve the recommendation of the Personnel Committee, seconded by Kacon, motion carried with Salmi opposing.
Audit Report: Don Zierke of Miller, McDonald, Erickson, and Moller, Ltd. presented the 2005 audit report of the City. He briefly reviewed the Independent Auditor’s Report, explaining that the report is prepared on a cash basis. The Statement of Cash Receipts, Disbursements, Balances and Investments was reviewed, including the beginning and ending cash balances for 2005. The General Fund ended the year with a deficit balance of $35,497. Zierke noted that about six-months worth of your yearly expenditures should be left in the General Fund balance at year-end, but explained that the General Fund deficit is offset by the separation of the Fire Fund from the General Fund. The Fire Fund has a healthy balance of $98,012 which, if combined with the General Fund as it typically is, more than accounts for the apparent deficit in the General Fund. The 2004 G.O. Bond Fund also ended 2005 with a deficit. Zierke noted that this was due to the early payment of a debt service obligation. The Liquor Fund ended the year with a deficit of $27,753.
Zierke next presented information on the City’s indebtedness. The City started the year with $205,000 in outstanding debt. $62,000 was issued in bonds and $13,000 in principal was paid, leaving the City with outstanding debt of $254,000 at the end of 2005.
Zierke reviewed the Schedule of Cash Receipts, Disbursements and Other Financing Uses for each of the funds. These schedules compared the budgeted amount to the actual amount for each line item in the budget.
Zierke presented the enterprise funds, including water, sewer and liquor, on an accrual basis. This basis includes the capital assets, liabilities and net assets of the funds. It also accounts for depreciation. He noted that the water and sewer funds are improving in light of rate increases and both are now showing an increase in net assets and balances. This cash on hand is needed for emergencies and due to the fact that grant money is not as readily available as in the past and water and sewer system improvements will need to be locally funded. The Liquor Fund Schedule of Net Assets looks different this year as compared to last year due to the fact that the operation was closed during the year. Cash at year end was zeroed out and inventory was listed at $10,000 rather than at the actual wholesale value due to the fact that it is probably not going to be sold for wholesale at this point. Gross profit on sales in 2005 was $47,232. Total operating expenses were $91,445 for a net operating loss of $44,213. Zierke noted that some of the expenses were due to the costs of closing the facility. He explained that the Liquor Fund still exists so any monies received for the inventory and building should be put into it. The Fund should be closed into the General Fund in 2006. This should take care of the cash deficits in both the General and Liquor Funds.
Zierke reviewed the management letter and noted that as usual, there is a reportable condition that exists in most smaller, cash-basis cities, in which there is not a segregation of duties. This is due to the fact that there is only one employee in the City Clerk’s office who handles all the receipts and disbursements. Zierke noted that the Council needs to be extra vigilant in monitoring the funds of the City due to this condition.
Zierke noted that by raising water and sewer rates, the City put those funds in a much better position. Salmi also credited the contribution from Bigfork Valley Hospital for the healthy increase in water and sewer funds.
A copy of the 2005 budget report can be obtained at the City Clerk’s office.
OLD BUSINESS:
Julie Kennedy – Engineering Updates: Kennedy began with an update on the airport mound system. She attended a meeting last week between Bergquist, the City and the MPCA. The MPCA was informed we are working on getting the system back to a surface discharge and our ultimate goal is getting the system removed from the City’s NPDES permit, either immediately or after a year or so of intermittent monitoring. Council had previously directed Kennedy to do preliminary investigation of the issues with the system. She is now requesting permission to have a geotechnical company come in and conduct testing. Kennedy will solicit quotes for this service and report back at the June meeting with a conclusion as to the problem and the best probable solution. Salmi asked about the flow testing results. Kennedy responded that the tests indicate inflow into the system. One of the reasons is that couplings have slipped and are allowing leakage/infiltration. Also, the discharge is taking on water from the drain tile. Salmi asked if the contractor would be responsible to pay for these fixes. Bergquist has approached the contractor about this with no luck. Kennedy is still following up with the Minnesota Association of Small Cities to see about getting money from the legislature to help with the fixes. We are running into an issue with this because Public Facilities Authority had the system listed as being privately owned which would make it ineligible for funding assistance. Kennedy is working on correcting the information so that the City is able to apply for any available funds. Kennedy noted that the MPCA is pushing us to get this fixed and reminded the City of the funds available to us through our agreement with the US Army Corps of Engineers. Bergquist has talked about other possible funding sources and they will be applying for grant money to help out as well. Grants can’t be applied for until the cost of the repairs is known so any grant applications are on hold until June when Kennedy reports back with the suggested solution.
Kennedy stated that Iron Range Resources (IRR) has a fund to reimburse up to one-half of the cost of obtaining federal funding and the City should apply for this. Kennedy will prepare this information at no cost to the City.
Motion to have Kennedy obtain quotes on geotechnical services for the airport mound system by Lexvold, seconded by Pifher, MCU.
Motion to have Kennedy complete the IRR application for reimbursement by Salmi, seconded by Pifher, MCU.
Kennedy gave an update on the 2005 water/sewer/road project. She noted that the project would be completed once road restrictions are lifted. Wearcourse and touchups are needed.
The Council had determined by their Future Projects Planning List that well capacity investigation should be completed in 2006. Kennedy would like to have SEH's water specialists come up in June to get started on this item.
Construction on the WilderNest housing development should begin shortly. Kennedy has written a memo to them noting City specifications that need to be met.
Brushing at Cemetery: Kennedy had checked into whether or not the Cemetery property contains wetlands and found that it does. Brushing and mowing is allowed in wetlands, but root systems cannot be disturbed. The area is also located in a shoreland district due to the proximity to Cemetery Lake. Salmi had contacted Jim Gustafson from Soil and Water who stated that a cemetery may be able to get an exemption from wetland requirements. Salmi and Gustafson also discussed the possibility of using fill on the eastern portion of the property. Salmi stated that the housing project is overbid on the cost of getting rid of fill and it could be put in that area. He was concerned about the housing project and its ability to move ahead due to these high costs. He also wanted to see fill placed on the Cedar Street lots that the City has for sale. Tendrup noted that she had heard that much of the fill that needed to be removed for WilderNest was contaminated and may not be able to be used in other areas. Kennedy was not sure of this and stated that we would probably have to do a subcut anywhere that we put spoils from the WilderNest project. Salmi asked where the fill could be put if it was indeed contaminated. Kennedy was not sure of this but the contractors bidding on the WilderNest project should be including this in their quotes. Salmi asked about where the school was at with their project. Kennedy noted that they are still working on a scaled-back version of the track project. Kennedy is working with all area landowners to find the best solution for the drainage problems in that area.
Public Works Equipment: Tendrup reviewed that this issue had been discussed over the last six or seven months and the purchase of equipment was budgeted for in 2006. Storlie had been asked to obtain amortization schedules for a certificate of indebtedness to purchase the equipment. Tendrup believes that the need for the equipment is still there and feels the City should purchase the equipment. Salmi asked if the types of machinery quoted would be sufficient for digging around manholes to do inflow and infiltration fixes. Maki reported that we are not allowed to dig lower than four feet without a trench box and the equipment would be sufficient for work down to that depth. Salmi asked what other cities such as Northome and Big Falls are doing and Maki stated that they hire someone to come in if they need to go deeper than four feet, otherwise they do the work themselves. Salmi felt that purchasing this equipment was putting the City on a thin line. Tendrup stated again that this machinery was budgeted for. The stall came in agreeing on what piece of equipment to purchase. Tendrup noted that Maki had found that the Catepillar machine was too wide to run on the bridge sidewalks. Tendrup stated that Maki’s original recommendation after his research was to go with the Bobcat. It will do the jobs that the City needs it to do. Kacon referred to a list he had asked Maki to compile of all the purposes this equipment could be used for in addition to brushing and snow removal. This list included such items as ditch clearing and reshaping, repairs to road shoulders and removal of excess materials, road repairs and leveling, and lifting of heavy materials. Tendrup noted that no attention had been paid to these things in the past and we could not continue to ignore these issues. Storlie was asked what the original quote on the Bobcat was and she stated it was $54,707. Tendrup noted that amortization schedules had been prepared for three different amounts. She further stated that all of this funding would not be coming from the General Fund but also from the Water and Sewer funds for times the equipment was used for projects in those areas. Tendrup explained that if the City takes out a certificate of indebtedness to purchase this equipment, it could be paid off early with proceeds from the sale of the liquor store. Pifher pointed out that we have already expended money to join the MN Cooperative Purchasing Venture in order to get the best possible price on this equipment. This money will be lost if we do not take advantage of the program by June. Motion by Lexvold to pass Resolution 2006-08, issuing a certificate of indebtedness in the amount of $60,000 for the purchase of public works equipment, seconded by Pifher, motion carried with Salmi opposing.
Kacon asked if this motion would allow Maki to purchase any equipment he wanted up to $60,000. Tendrup noted that the Bobcat was the equipment being recommended. She asked if Council wanted Maki to obtain quotes on a Bobcat from three different vendors. Pifher moved to have Maki obtain three quotes on a Bobcat, seconded by Lexvold, motion carried with Salmi opposing.
Airport Hangar Land Lease: Kacon reported that he had talked with Earl Snell who reported that he does pay personal property taxes on his hanger which amounts to over $700 per year. He did agree that the current charge of $240 per year was set 10 years ago and may need to be looked at, however the property taxes he pays will continue to increase as well. Tendrup noted that we also could look at shortening the lease so that it does not go another ten years before the fee is looked at again. Kacon noted that Snell would not be opposed to looking at an increase that reflected the time. The public was allowed to comment. Rajala suggested increasing it to $500 a year on a five-year lease. Motion by Pifher to enter into a five-year lease with the fee set at $350 the first year and a ten percent increase per year for each of the next four years, seconded by Kacon, MCU.
Airport Tractor: Maki had been asked to report on the condition of the airport tractor. In addition to the repair needed on the wheel, repairs to a leaking radiator and hydraulic pump are needed. Rollover protection and a new seat must be installed, along with an area for operator mount and dismount. Maki reviewed that the SKAG mower would be moved out to the airport for the time being. Motion to have Maki obtain quotes on the repair of the tractor by Lexvold, seconded by Pifher, motion carried with Salmi and Kacon opposing. Salmi asked if our other mowers have roll bars on them and Maki reported that they currently do not, however they will be equipped with them before any mowing is done this season.
Donation Requests: The Council had tabled the three requests that were received at the last meeting until more information on the budget was available. Storlie reported that the total donation budget for 2006 is $469. At the time of the budget approval, this amount was earmarked as a contribution to the Itasca County Historical Society. No action was taken on this item.
Liquor Store Bid Clarification: Tendrup has been approached several times with questions and concerns on the bid process for the liquor store building that was discussed at the last meeting. It had been determined that bids would be solicited with five percent earnest money required at the time of the bid. Tendrup is hearing concerns about the process of oral bids vs. sealed bids. Infante stated that he was not interested in participating in a bidding war and would retract his bid if an oral bidding war is allowed. He stated he would be making a firm offer and would like to see a sealed bid session with no changes allowed to the bids after submission. The public was allowed to comment. David suggested that bidders be allowed to increase their bids, but not be allowed to increase more than ten percent above their original bid. Rajala noted that the inventory should be required to be sold with the building. Infante asked about a contract for deed and wanted to know what percentage rate the City would charge on one. Tendrup felt that the Council should make a motion that the bids are sealed and cannot be changed once submitted and clarify the requirements for a contract for deed. Motion by Pifher that the bids would be sealed, opened at the meeting on April 18th and no bidding war would take place, 30 percent down will be required on a contract for deed and the interest rate on a contract for deed is to be included in proposal, seconded by Lexvold, MCU.
NEW BUSINESS:
Fire Department: Fire Chief Ron Root was present to address the Council. The Department has been approached about running a beer garden at the Bigfork Wilderness Celebration. By law, any fundraisers must be conducted by the Fire Relief Association. Root reported that the Association has discussed this and is looking into the possibility, however there is some disagreement among the members as to whether or not to do it. Storlie noted that if the Council approves of the Association doing this, they would need to determine if they would require them to obtain liquor liability insurance coverage for the event. Root questioned if the Council was willing to give the Fire Relief Association their blessing for this activity. No action was taken by the Council on this item and it was the general consensus that the Association did not have the Council’s blessing or permission to conduct this event.
Root’s second item was the disposition of the old pumper that was replaced with the purchase of the new pumper. He asked the Council if they would like to put it out on bids or select a price and put it up for sale. He reported that he has been approached by Balsam Fire Department who is looking for a truck and may be interested. Motion to allow Root to dispose of the truck at his discretion by Kacon, seconded by Pifher, MCU.
Cemetery Issues: Salmi asked if money was taken out of the Cemetery Fund illegally. Storlie and Tendrup explained that the money was not removed from the fund, but rather the Cemetery Fund was combined with the General Fund as suggested by our auditor after the 2004 audit. Tendrup asked Salmi to put some pressure on the County and see if he could help with the acquisition of the tax forfeit parcel we are requesting from them to be used for expansion of the Cemetery.
Schedule of Weed Inspection Meeting Dates: The City is required to have our Mayor, as Weed Inspector, and our Assistant Weed inspector meet to inspect the City on a regular basis. A motion was made by Lexvold to meet on the Monday before Council meeting day at 4:30 p.m. during the months of May through September for weed inspection, seconded by Pifher, MCU. Tendrup asked that Maki be available at those times to make sure all areas in the City are included in the inspection.
Use of Airport Facility: Gene Ward had approached Tendrup about the EAA using the Bigfork Airport for a fly-in. Ward has already gained approval from the Bigfork Lion’s Club for use of their area at the airport and is now requesting permission from the City for use of the rest of the property. Motion to grant permission for this by Lexvold, seconded by Kacon, MCU. Tendrup will contact Ward with this decision.
Reimbursement to Maki for Training Costs: Tendrup reported that Maki had volunteered to complete his training at his own expense. Tendrup does not feel this is right since the City’s Personnel Policy states that the City will pay for all training which is required for the position.
Motion by Lexvold to reimburse Maki for the cost of his recent training, seconded by Kacon, MCU.
Use of City Property for ATV Pull: The Wilderness Wheelers are requesting permission to use the alley behind the Picaroon Saloon/Huskie Café for an ATV pull on the day of the Bigfork Wilderness Celebration. Motion by Pifher to allow the use of the alley for the ATV pull, seconded by Lexvold, MCU.
Vendor Booth for BWC: Motion to have a vendor booth at the Bigfork Wilderness Celebration for display of the items for sale by the City by Pifher, seconded by Lexvold, MCU.
Letter of Support for Acceleration of Hwy 38 Improvements: The City has been given information from the Hwy 38 Leadership Board regarding the schedule of improvements for Highway 38. A list of addresses for Representatives, Senators and MnDOT officials was included if the City wished to send a letter in support of accelerating the improvement dates. A motion was made by Kacon, seconded by Pifher to send a letter in support of accelerating the improvement dates, MCU.
Quote for purchase of trimmer: The City had solicited donations for the purchase of mowing equipment in the fall of 2005 and received $1,400. Maki has obtained a price quote for a trimmer that is needed. The cost is $691.19. Motion by Lexvold to purchase the trimmer, seconded by Kacon, MCU.
OTHER BUSINESS:
The City received a letter from the law firm of Dimich, Swanson, & Sterle. This firm was chosen to provide criminal prosecution services for the City. The letter noted that the firm may also provide criminal offense services for any person charged with a felony that happened within the municipal boundaries of Bigfork. The Council did not have an issue with this practice.
David Asher asked if the City has insurance coverage for the equipment they were purchasing and Tendrup responded that we do.
David asked if a snow blower and brush hog were included in the quoted price of the equipment and Maki answered that they were.
Mayor Tendrup adjourned the meeting at 8:27 p.m.
Angie Storlie
City Clerk
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