DRAFT – These minutes are not official until approved at the next regular City Council meeting.

City of Bigfork

Regular Meeting and Work Session April 12, 2005

Mayor Tendrup called the work session to order and introduced the City Council and members of the Planning Commission.

City Council Members Present: Mayor Amy Tendrup, Bob Zimmer, Jean Lexvold, Amy Pifher and Richard Salmi Planning Commission Members Present: Gus David, Lonnie Kacon, Renee Willet, Amy Tendrup and Ann McGarry Absent: none Also Present: Andy Shaw, Julie Kennedy, Mark Maki, Mark Jackson, Todd Olson, Josh Olson, David Schminsky, Tarry Edington, Dan Bryskin and Cheryl Fessler

Tendrup explained that the Planning Commission has been working on drafting a new zoning ordinance for the City. This work session was being held to discuss future zoning issues relating to the Woodland Terrace mobile home park, as well as current issues with water supply and usage.

City Engineer Julie Kennedy of Short-Elliot-Hendrickson opened with information regarding water usage at the park. She explained that both the park owners and the City are interested in getting accountability for the amount of water used by each unit. The way to do this is through individual metering. Studies have proven an instant reduction in the amount of water used once each unit is directly responsible for the actual amount of water they use. This saves the City money both by having less water to treat in the first place, and by helping with issues of pond capacity. Kennedy emphasized that the City is not a strong candidate for grant money until we have proven that we have taken steps toward correcting these problems on our own. The City had previously offered to the owners of the mobile home park, TNT Real Estate, to supply the meters and read them on a monthly basis. TNT would then be responsible for installation and maintenance of the meters. Furthermore, they would be ultimately responsible for any unpaid charges within the park. Dan Bryskin of TNT stated that they would like to work with the City to get individual meters installed. He asked about the possibility of the City giving TNT a loan to cover the installation costs, which they would pay back with monthly payments to the City. City Attorney Andy Shaw will look into whether or not the City can legally loan money to a private entity. One apparent problem with individual metering is the condition of the service lines in the park. It was felt that it may not be possible to install individual meters without replacing the lines as well. Bryskin had hoped to have definite numbers to present to the Council on the costs, however he now feels he needs to do more research into what options there are. Kennedy asked Bryskin what information he needed from the City in order to come up with his proposal and cost estimate. Bryskin asked what type of meters would be supplied to them and Kennedy and Maki will provide this information.

City Attorney Andy Shaw moved on to zoning issues. He restated that the Planning Commission has been working on a new zoning ordinance for the City. One section of the ordinance will spell out regulations for mobile home parks. The City is asking for input from TNT as to the design standards that will be required. Shaw stated that the current park is probably not going to comply with the standards that are set. This means that at the time of adoption of the new ordinance, the park would be considered a non-conforming use. A non-conforming use can continue until a triggering event takes place such as expansion. If the park were to expand, the new section would have to comply with all regulations of the new ordinance. Furthermore, fifteen percent of the total cost of the expansion would have to be put towards making the existing part of the park more compliant. Bryskin asked if a home in the existing park could be replaced with a newer home without causing the entire park to have to become compliant. Shaw stated that it could be replaced, as long as they new home did not make the lot any more non-conforming that it previously was. Bryskin asked if they would need to get a land use permit every time a new trailer was moved in. The way the proposed ordinance is written now, they would need a permit every time. This is so the City is notified and can inspect to ensure compliance. Bryskin suggested that it would be prohibitive to have to get a permit every time due to the time frame involved and asked if a different system could be considered. Perhaps the City could perform routine inspections of the park as a whole to ensure compliance. The Planning Commission will consider this. Bryskin wanted to know if land use permits would be required for things like decks, stairs, and small sheds, again suggesting that this would be prohibitive due to the time frame. He stated that other cities require permits only if a deck or shed is over a certain size. This will also be considered by the Planning Commission.

Mayor Tendrup adjourned the Work Session at 7:05 p.m.

Mayor Tendrup called the regular meeting to order at 7:10 p.m. with all Council Members present. Also Present: Julie Kennedy, Andy Shaw, Mark Maki, Tarry Edington, Marilyn David, Joyce Holsman, Gus David, Connie Maki, Caroline & Warren Welch, Marilyn Salmi, Chet Cook, Mike Bakke, Orbin Holt, Tim & Anne Collins, Mike Larson, Gwen Olson, David Schminsky, Gene Rajala, John McCann, Gene Madsen, Robert Johnson, Lonnie Kacon, Kathy Britain, Don Zierke, Jon Babcock and Jef Fisher.

Consent Agenda Motion by Zimmer, seconded by Lexvold to approve the consent agenda as follows: #1- approval of the minutes of the March 8th regular City Council meeting #2- approval of the Police Report for March 2005, report is available at the City Clerk’s Office #3- approval of the library report for March 2005 of 153 books checked out and 31 readers using the library #4- approval of the March 2005 budget report #5- approval of the Public Works Department report for March 2005, report is attached to the minutes as Appendix A #6- approval of the claims for payment in the amount of $53,856.87 including the March 15th and 31st payrolls Motion Carried Unanimously (MCU).

At this time, Mayor Tendrup moved the 2004 audit report to the top of the agenda. Don Zierke of Miller, McDonald, Erickson & Moller, Ltd. was present to review the report with the Council. He reviewed the statement of receipts, disbursements, and transfers which presented all funds on the cash basis of accounting. He then moved on to detailed information on each of the funds, the General, Bigfork Wilderness Celebration, Fire, 1997 Bond, 2004 Improvement Bond, Water, Sewer and Liquor funds, as well as the city’s investments. In most areas, more was spent during the year than the City budgeted for. Ann Collins asked if the budget was always exceeded and who makes the budget. Tendrup responded that the Council approves the budget each year. Zierke did not have information on prior years as to whether or not the funds were over or under budget. Much attention was paid to the liquor fund as the report prepared on the modified accrual basis shows a loss of $16,585 in the fund. Zierke explained that from a balance sheet standpoint, as well as from a cash basis of accounting, the liquor fund appears to be in good shape. However, when the profit/loss statement is prepared on the modified accrual basis, there is a loss shown. Ann Collins asked if the bulk of the expenses in the liquor fund were from wages and Zierke responded that it is.

At this time, Mayor Tendrup moved the Liquor Store Commission to the top of the agenda. Gus David informed the Council that the Liquor Store Commission had met last night and reviewed research that he, Marilyn David and Joyce Holsman had compiled on moving to an off-sale only facility. They are proposing that the on-sale portion of the business be closed and that City Hall be moved into that area of the building. This would save money on utilities and insurance on the current City Hall building. One part-time position at the liquor store would be eliminated. The remaining one part-time position and the manager’s position would take a twenty-five percent cut in pay. Savings would also be realized from lower insurance premiums on the liquor facility and by being open fewer hours. Some audience members were opposed to the City Hall being located in the same building as the liquor store. David stated that the only way the election in June can be called off is if the people who signed the petition asking for the election would request to have their signatures removed from the petition. Gene Madsen stated that it was a mistake to file the petition in the first place. He felt that a change in management was in order. Salmi agreed. Zimmer asked Madsen what he would expect a new manager to do differently. Madsen responded that any company that loses money changes management and that change often solves the problems. He also stated that the percentage spent on labor at the Picaroon is much too high compared to other businesses. Zierke had handouts for the Council that compared our liquor store to others that are also on- and off-sale facilities in smaller cities. These included stores in Menahga, Sebeka, Littlefork, Ranier and Big Falls. Our liquor store has the smallest percentage of gross profit on sales of all of these stores. It has the second highest operating expenses percentage. Madsen also had some information to share with the Council on municipal liquor stores in our area including Blackduck, Kelliher, Littlefork and Northome. From 1999 to 2003, each of these stores had a net income. Blackduck had a net income of $378,083, Kelliher’s net was $205,946, Littlefork’s was $54,793 and Northome’s was $110,034, whereas Bigfork had a net loss of ($12,563). Madsen stated that our liquor store can make money if these stores can. Zierke commented that Littlefork has a different situation where the City Clerk is also the Liquor Store Manager. He clarified that there are two full-time positions, one is the City Administrator and the other is the City Clerk/Liquor Store Manager. Tim Collins asked if any members of the Council had ever visited any of these other liquor stores to see what they are doing to make it. Tendrup ended the discussion by informing the Liquor Store Commission that the Council would need a formal written proposal before considering the matter any further.

OLD BUSINESS:

Julie Kennedy – Engineer Updates: City Engineer Julie Kennedy of Short-Elliot-Hendrickson was present to update the Council on various items, the first of which was Legacy Development. She informed the Council that they are continuing to work on this project and that Legacy will be presenting an updated preliminary plat to the Planning Commission in May. Next Kennedy updated the Council on sewer pond access issues. A meeting was held with representatives from the Catholic Church and the hospital to discuss everyone’s needs and wants. The Council was provided copies of minutes from that meeting. Salmi expressed concern that the sewer line on the hospital property has already been moved twice and now we want to move it again. Kennedy explained that our goal is to get city-owned lines off of all private property in the city, not just at the hospital. Also, if we move it to the property line, it won’t be necessary to move it again. This is much preferred to moving the line every time the hospital expands. Salmi felt that the hospital should bear the cost of this relocation since they have a much larger tax base than the city does. Kennedy stated that she believed the hospital had paid for the prior relocations. The three entities will be meeting again to have further discussions on the matter. Kennedy asked if there were any additions or changes to be made to the community survey that was presented by Dick Grabko at last month’s meeting. The Council had no changes. Kennedy requested a motion to approve the survey as presented and to arrange for it to be administered to residents of the community. Motion was made by Zimmer and seconded by Pifher to do so, MCU. It was stressed that the responses to this survey are a vital piece of the grant application process. We will need to obtain survey responses from virtually every household in the City. It was also stressed that responses to the survey are strictly confidential and will only be used for the purpose of grant applications.

Itasca County Plowing/Grading Contract: This item was tabled at the last meeting so that the City could request assistance from the County for the airport. County Commissioner Catherine McLynn feels that the Council will support the airport, but not through reduced rate or free plowing and grading. Storlie recommended that the Council approve the contract. Motion by Salmi, seconded by Zimmer to approve the contract, MCU.

City House – mold asbestos/issues: The Council received a report from MacNeil Environmental after their inspection of the city house. There is mold and asbestos present that needs to be removed. Maki had obtained a few price quotes on the removal and was expecting to receive more. Salmi stated that Bill Loosbrock has removed mold at the hospital and is willing to help the City take care of this. Shaw stated that the City could pay to have the mold and asbestos removed and then sell the house, or they could simply disclose knowledge of it and sell the house as-is. It was Zimmer’s opinion that the house was not habitable and he would not feel comfortable selling it to a family. He suggested the possibility of giving it to the fire department for use as a training burn and then use the property for a park or a site for a future water tower, etc. This would save the City money by not having to upgrade the sewer system to this house. Many in attendance agreed with this idea. Shaw stated that our listing agreement with the realtor should be looked at to determine when it expires and at that time the City could decide what is to be done with the house and property. Maki asked if the Council would like him to totally shut down the heat in the house and it was decided to do so.

Parking Easement for Huskie Café: Mike & Mary Larson had previously approached the City requesting an easement for their new location on Main Avenue. Shaw explained that the easement will be for access to their property, not for parking. The easement also allows for a suspension during community events where the City uses the area. Motion by Salmi, seconded by Lexvold to grant the easement, MCU.

Gene Madsen presented a drawing of a wannigan that he would like to build and have placed at the Kiosk on Main Avenue. He explained that wannigans were used by loggers in the old days as a floating cook shack and bunkhouse on the river. He will build this at his own expense and turn it over to the City upon completion. Motion by Salmi, seconded by Lexvold to allow Madsen to build the wannigan to be placed at the Kiosk, MCU.

NEW BUSINESS:

St. Jude’s Bik-a-Thon: The City has been notified that a bike-a-thon will be held as a fundraiser for St. Jude’s on May 21st. It will run from the Catholic Church to Scenic State Park.

Appointment of Judges for June 7th Special Election: Itasca County has requested that the City appoint election judges for the upcoming special election. Judges will be needed for the healthcare facility voting. The same judges that were used in the general election can be used again. In addition, County staff needs to be named as judges as they will be tabulating the ballots. Motion by Zimmer, seconded by Pifher to appoint Marie Bertram, Ann McGarry, Angie Storlie and Itasca County Staff as election judges for the June 7th special election, MCU.

Purchase of Street Signs: Maki presented a quote to the Council for street signs. The signs will cost just under $2000. Maki was able to get a cut-rate on sign posts from a local vendor. We had budgeted $4400 for this item so we should come in well under that amount.

Northern Itasca Joint Powers Board Agreement: A letter was received from NIJPB requesting that the members renew the agreement that establishes the Board. Zimmer asked if this cost the City anything and Storlie stated that we pay dues of approximately $1100 per year. Tendrup added that the dues would likely be increasing as grant funding for the community coordinator position has been cut and will need to be obtained from other sources. Motion by Zimmer, seconded by Lexvold to sign the agreement, MCU.

Liquor License Application: An off-sale non-intoxicating liquor license was received from Kocian’s Family Market. Motion by Salmi, seconded by Zimmer to grant the license, MCU.

Personnel Policy Revisions: Revisions to the personnel policy had been drafted by City Personnel Attorney John Licke that will authorize the City to perform background checks on potential employees. Motion by Salmi, seconded by Lexvold to approve the changes, MCU.

Lifeguard/Swim Instructor: Storlie informed the Council that the lifeguard from last year will not be returning. This puts us back down to the one lifeguard that was recently hired. Storlie asked if she should advertise again for more applicants. It was decided to advertise at the school and skip the newspaper ad.

2005 Bigfork Wilderness Celebration – Vendor Booth: An application for a booth at the 2005 celebration was received. Motion by Zimmer, seconded by Pifher to do the same booth as last year with voting information, MCU.

OTHER BUSINESS:

Three applications for land use permits were received. The first was from David & Regana Richter for a mudroom addition to their home. The second was from Mark Maki for repair of his garage and new siding on the house and garage. The third was from Chris Weidenhammer for a 40’x40’ garage. Motion by Zimmer, seconded by Lexvold to approve all three permits, MCU.

A letter was received from Rich White requesting a credit to his water/sewer account. The letter explained that this past January, their house suffered a broken water pipe in the crawl space which resulted in high usage and a large bill. Mr. White was requesting that the account be credited for the sewer charges since this water from the leak did not enter the sewer system. The Council felt it was a legitimate request. Maki stated that when this happens in the future, the property owner should notify the public works department so that they can verify that the water did not enter the sewer system. Motion by Zimmer, seconded by Lexvold to credit the account accordingly, MCU.

Maki requested clarification on how the Council would like him to proceed with the proposed projects and general maintenance and tasks for the City. He stated that he had been approached by an elected official and asked to slow down the pace of these things in order to save money. Tendrup stated that the Council as a whole had voted to move forward with these projects and Maki should continue to do so. As far as day-to-day maintenance and operations, Tendrup assured Maki that he must do what is necessary to keep the City in compliance and avoid fines from any State departments due to non-compliance. Zimmer assured Maki that he was doing the job that he was hired to do and should continue on as he has been. Tendrup added that any directives must be given by the Council as a whole and not from any one individual Council Member.

There being no further business, Mayor Tendrup adjourned the meeting at 9:35 p.m. and announced that a closed meeting would be held immediately for an annual performance review of the liquor store manager.

Angie Storlie City Clerk

These minutes are available on the City website at www.cityofbigfork.com. To sign up to receive the minutes by email, send your email address to ctyclerk@bigfork.net.

Appendix A

Public Works Department Report March 2005 § Repair heat pipes in city house – 4 leaks found § Place back flash arrestors on torch tanks – insurance requirement § Quotes for safety equipment, sewer system § Empty basket, Powell lift station § Met with Julie & MPCA on airport mound system – several solutions discussed § Attend supervisor training in St. Cloud § Check city house daily for leaks and boiler trouble § Snow plow 8 hours, airport 5 hours § Repair smokeeater at Pic § Snow blow sidewalks on bridge north § Check sludge depth at ponds – 35 holes drilled – info to Julie/SEH § Test water for iron manganese hardness § Street sign quotes § Pick up event tent for City of Bigfork repair wires on white truck/grease dump bed § Remove 2 dead trees at park § Wire brush 1,2&3 filters at water treatment plant § Repair relief valve lines on 1&2 filters at water treatment plant § Steam culverts – 39 hours § Check several areas for water leaks – excessive water usage § Water meter readings § Monthly paperwork (MPCA – City) § Check on location for tower requested from party on location § Cut channel thru ice dam along Ash Street - flooding problem § Clean out handicapped lift shaft – City Hall § Parts run to Grand Rapids § Meet with Dick Salmi, Bob Zimmer and Lonnie Kacon on needed repairs for water treatment plant

Wastewater 1,669,000 Water 1,302,000 I&I 367,000 Snow/Rain 3” snow, 5” rain

Chemical Usage Pot. Perm 8.75# @ 1.9552 $17.11 Flouride 3.6 gal @ .3958 $1.43 Caustic Soda 8# @ 4.1285 $33.08 Chlorine 25# @ 1.1617 $29.04 Total: $80.66

Backwash Water Indication water 488 gallons Backwash 14178 gallons Total gal unmetered at WTP 14.666

Trucks Gallons Cost Miles White 64.5 $129.76 343.0 Green 85 $215.50 345.3