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

City of Bigfork

Regular Meeting April 13th, 2004

Except for Motions made by the Council this is not a verbatim record of every statement made during the Council meeting. Discussions have been paraphrased to give general direction and understanding.

Members Present: Mayor Lonnie Kacon, Bob Zimmer, Jean Lexvold and Steve Grover Absent: Amy Tendrup Also Present: Andy Shaw, Julie Kennedy, Tarry Edington, Joyce Holsman, Gary W. Schwersinski, Don Zierke, Mark & Connie Maki, Dick Salmi, Dan Briskin, Bob Schwartz, Pat Crawford and Marilyn David

Mayor Kacon called the meeting to order at 7:00 p.m.

Consent Agenda Motion by Zimmer, seconded by Lexvold to approve the consent agenda as follows: #1- approval of the minutes of the March 9th regular and the March 22nd special meetings #2- approval of the library report of 193 books checked out and 49 readers using the library #3- approval of the March 2004 budget report #4- approval of the claims for payment in the amount of $82,151.49, including the March 15th and 31st payrolls Motion Carried Unanimously (MCU)

At this time in the meeting, Mayor Kacon moved the items that City Attorney Andy Shaw was present to address to the top of the agenda. Andy first deferred to City Engineer Julie Kennedy who explained that she, Shaw and Storlie have been discussing updating the City’s zoning ordinance. She requested permission for the group to work on a draft of the ordinance to be adopted. Motion by Zimmer seconded by Lexvold that Kennedy, Shaw, and Storlie be directed to work on updating the zoning ordinance, MCU. Shaw next addressed the request for a variance from David Asher. He stated that since the City has a Planning Commission in place, this request should be referred to them. He explained that a public hearing is required as well as notice to adjacent property owners. It was determined that the Planning Commission will address this request at their next meeting. Shaw commented that the proposed JOBZ Business Subsidy Policy looked good. The final item that Shaw addressed was the sale of city owned property. The City has three bare lots and one lot with a house that they would like to sell. Shaw explained that the house, as well as the smallest of the bare lots could be sold by direct negotiation with the interested parties. Shaw asked if the other two bare lots will be sold with any requirement that the purchaser build on the land within a set period of time. Kacon felt this was a good idea. Zimmer felt that the City should use a real estate agent to facilitate the sale of these lots. He also felt that they should not be put up for sale until they are provided with sewer and water. Shaw stated that the first step was to get appraisals of all the properties. Motion by Zimmer seconded by Grover to authorize Storlie to order appraisals of all of the properties, MCU. Shaw will order the abstracts for the properties to make sure the City has clear title.

At this time in the meeting, Mayor Kacon moved the presentation of the 2003 audit report to the top of the agenda. Don Zierke was present from the auditing firm of Miller, McDonald, Erickson & Moller, LTD. He went through the different sections of the audit report. He first reviewed the section listing the General fund budgeted vs. actual expenditures. For 2003, the General fund was $13,514 under budget. Zierke explained that most of the other City funds were special revenue funds with limited activity, and moved on to the enterprise funds. The Water fund was the first to be reviewed. In 2003, the Water fund had operating revenue of $61,872 and operating expenses of $41,794 to make an operating income of $20,081. In addition, there was non-operating revenues of $2.331 and a transfer out to the Liquor Fund of $12,026 to make a net income for the year of $10,386. Zierke advised against transfering monies out of either the water or sewer fund. Any extra income should be retained in those funds for use on future maintenance and expansion projects. It should not be used to subsidize any other City funds. The Sewer fund had operating revenue of $42,921 and operating expenses of $34,643 for an operating income of $8,278. In addition, there was non-operating revenue of $2,163 for a net income of $10,441. The Liquor fund was the final enterprise fund to be reviewed. The Liquor fund had sales of $239,935 in 2003 and the cost of sales was $150,926 for a gross profit on sales of $89,009. The operating expenses were $111,785 and there were non-operating revenues of $1,852, making a net loss before transfers of $20,924. Monies were transferred from the General Fund, the Water Fund, and the Liquor Store Improvement investment fund in the total amount of $26,861 to make a net income for the year ended December 31, 2003 of $5,937 Zierke next went through a few areas in which the City was found to be in non-compliance with legal requirements of the State. The first was the needs to use claim forms for all City bills. Zierke recommended to Storlie that a stamp be purchased for the back of all City-issued checks that will constitute a claim. This had been done. The second area was bond covenants. During his review of the City’s bond covenants, Zierke found that the City had passed an irrevocable levy requirement for the 1997 bond and they have not been levying for this. The City will begin doing this with the next tax levy. Zierke recommended to the City to cut down on the number of funds that are used. He explained that the Liquor Pull Tab fund and the Liquor Store Improvement fund should be included as part of the Liquor Fund. The Cemetery, Recreation, Airport, and Fire Funds should be included as part of the General Fund. A motion was made by Zimmer, seconded by Lexvold to have Storlie prepare information for the next Council meeting as to the consolidation of City funds, MCU. Zierke had two final recommendations for the Council. The first was the manner in which the public works maintenance worker’s wagers are allocated. Currently, they are being taken out of an unallocated fund. Zierke suggested that the wages from this position should be taken out of the highway, parks and whatever other department the employee works in. The final item was the separation of sales tax charges. Currently, sales tax is taken out as a separate line item. Zierke stated that this is not necessary and the sales tax should be included in the cost of the item.

OLD BUSINESS:

Engineering Update: Julie Kennedy of SEH Engineering first discussed the Cedar Street sewer plans. She will have plans done within the next two weeks for Public Works Superintendent Mark Maki to review. The estimated cost for this project is between $30,000 and $35,000. Zimmer questioned whether or not Orbin Holt has been contacted regarding the City’s plans on this and how it affects his plans for a sewer system. Maki will get in touch with Holt on this issue. Kennedy next reviewed a conceptual plan for the Legacy Development housing project. This project has changed since the Council last reviewed it. Legacy Development is now planning on putting in affordable housing as well as the senior villas. Tarry Edington commented that though the addition of affordable housing to this project came as a surprise, he felt that it would complement the proposed WilderNest housing project. He pointed out that this project would address a different area of the needs identified in the housing study. The Legacy Development project is still working according to the timeline presented at the March 22nd special meeting. The preliminary plat will be reviewed by the Planning Commission on May 5th and approved by the Council at the May 11th meeting. The final plat would be reviewed by the Planning Commission on June 2nd and approved by the Council on June 8th. The TIF documents and developer’s agreements will be done in conjunction with the plat process. There is still some question as to how this property will be served with water and sewer. Kennedy stated that there should be some cooperation and possible cost sharing between Legacy and the City to loop the water and sewer to the property. Kennedy’s final item was the water line under the site of the Fine Arts building. Moving the line is the responsibility of the Fine Arts group. Kennedy suggested that the City pay for SEH to do a one-page design to be submitted to the Fine Arts group for their contractors to use in the plans for the water line. Motion by Zimmer seconded by Grover to hire SEH to do this, MCU.

Kacon questioned if Dan Briskin of TNT Real Estate had anything to discuss in relation to these items. Briskin stated that he was present to discuss the water issues at Woodland Terrace. Usage at the trailer court is high. TNT would like to work with the City to get individual meters on each trailer so that each user would pay for their fair share of the high usage. Kacon stated that Storlie had done some checking with other cities and found that the property owner is responsible for putting in meters in an area like a trailer park. The owner is then responsible for reading their own meters and implementing their own billing system, as well as for the future maintenance on the meters. Briskin stated that TNT is unable to perform all of these tasks. Maki pointed out that if the City were to take responsibility for this, it would add quite a bit to both his and Storlie’s workload. Kacon suggested that he and Briskin sit down together and gather some numbers and figures to bring back to the Council regarding this issue.

Kacon recognized Dick Salmi who introduced Bob Schwartz and Pat Crawford of Schwartz Redi-Mix and Excavating. Schwartz stated that they are in the process of doing a major upgrade at their facility. They are looking at a combination redi-mix and maintenance facility in a new location and are interested in participating in the JOBZ program. They are looking at about 6 full-time jobs to start, with the possibility of 8 or 9 jobs in the future. Schwartz questioned if this was something that fit the City’s development plans and if they have land available. Kacon stated that there are 10 acres of JOBZ land available. Zimmer stated that the City was very interested in having a business come in and participate in the program and asked that Schwartz keep the City of Bigfork in mind as a possible location for their business.

3-Way Stop: Storlie presented information regarding the 3-way stop at Scenic Hwy 7, Golf Course Rd, and Huskie Blvd. The County has agreed to install signs if the City will purchase them. Storlie obtained a price quote for three custom made signs reading “Traffic from the (Left/Right/Oncoming Traffic) Does Not Stop”. The cost for 30x24 inch signs is $151.56. Motion by Zimmer seconded by Lexvold to purchase the signs, MCU. Kacon stated that there is still the problem of the tree that hangs over one of the stop signs. Maki will look into getting this tree trimmed back.

Summer Workers: The City received two applications for the position of lifeguard/swim instructor. A motion was made by Zimmer and seconded by Grover to hire Shannon Gilbert for the position, MCU. One application was received for summer maintenance worker. Kacon asked Maki if he felt the Public Works Department could get by without any summer help. Maki felt that they could. It was decided that no summer help would be hired for 2004.

NEW BUSINESS:

JOBZ Business Subsidy Policy: The Planning Commission has reviewed and submitted a proposed business subsidy policy for the JOBZ program. Shaw has reviewed this and had no changes or concerns. Motion by Grover seconded by Lexvold to approve the policy as presented, MCU.

JOBZ Marketing Invoice: The Arrowhead Regional Development Corporation has agreed to market all the Job Opportunity Building Zones in the area. The cost for this marketing to the City of Bigfork would be $250.00. Motion by Lexvold seconded by Zimmer to pay this cost, MCU.

2004 Minnesota Municipal Clerk’s Institute: Storlie explained that she has received a scholarship for $250 toward her second year in the clerk’s institute. This leaves $160 for the City to pay towards the classes, in addition to the cost of the hotel room which is $465.40 and mileage and meals. Motion by Zimmer seconded by Lexvold to allow Storlie to attend the Institute and pay for all costs associated, MCU.

Itasca County Habitat for Humanity Donation Request: The City received a donation request from Itasca County Habitat for Humanity. Zimmer stated that due to his affiliation with the organization, he would not feel comfortable participating in a decision on this item. The issue was tabled.

Minnesota Association of Small Cities Request for Resolution: Storlie presented copies of a letter from the MAOSC requesting that the City pass a resolution in support of restoring unfair reductions of local government aid. Storlie will prepare a resolution for review and discussion at the next regular City Council meeting.

OTHER BUSINESS:

May 4th Wastewater Training: Dave Waters will be attending a free wastewater training session on May 4th. Motion by Lexvold seconded by Grover to pay for mileage and meals for this training, MCU.

Update Letter from Vikki Card: Storlie provided copies of an update letter from Vikki Card. Her kennel project is moving forward. She plans on attending the next City Council meeting to continue discussion on the cooperation of the City with her business.

There being no further business, Kacon adjourned the regular meeting at 9:10 p.m. and announced that two closed meetings would be held immediately for the performance reviews of the Liquor Store Manager and the Librarian.

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.