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

City of Bigfork

Regular Meeting August 23, 2005

Members Present: Mayor Amy Tendrup, Bob Zimmer, Jean Lexvold, Amy Pifher and Richard Salmi Absent: none Also Present: Mark & Connie Maki, City Attorney Andy Shaw, Bob Bushway, City Engineer Julie Kennedy, Dave Schminkey, Robin Custer, Blessing Rahier, Julie Aakhus, Rick Utech, Peter McDermott, and Jon Babcock

Mayor Tendrup called the meeting to order at 7:00 p.m. and moved Rick Utech and Peter McDermott to the top of the agenda.

McDermott introduced himself as the president of the Itasca Development Corporation (IDC). He stated that the mission of IDC is to stimulate quality jobs and private investment. He then introduced IDC’s newest program, the Itasca Building Fund. This fund has been created with a million and a half dollars from the Blandin Foundation that will be repaid in 10 years. McDermott explained that the fund was established to help create jobs. The goals of the fund include reducing unemployment, providing affordable and readily available manufacturing and technology business space in JOBZ locations, accelerating business growth, and leveraging grant, debt and private financing and community support to build or renovate buildings. This fund is controlled by a four-member committee and IDC/Jobs 2020 staff. Five area JOBZ sites have been targeted for this project, including the City of Bigfork’s 10 acre JOBZ parcel. The specific objectives of the fund are to accelerate the creation of 80 jobs and create at least two new or improved building assets within the next 2 to 3 years, obtain multi-community commitment within the next 6 months, leverage private investment, boost business performance by providing acceleration services, and repayment of the funding from Blandin. McDermott explained that is the purpose of their presentation, to gain community commitment. He explained that there are specific criteria that a business must meet in order to qualify for financial assistance from this fund. McDermott is now meeting with communities to discus working together on this project. IDC will be meeting with funding partners, formalizing parameters and marketing the building development. Salmi asked if they would fund storage at the airport. McDermott answered that the purpose of the fund is to target and recruit manufacturing and technology businesses and it would not likely fund a project that did not create any jobs. Salmi asked about assistance for industries that are in trouble. McDermott answered that the Itasca Development Corporation already does this through all of their programs, including this new Itasca Building Fund. McDermott stated that he will be sending a list of questions for the Council to answer regarding their willingness to participate in the program.

OLD BUSINESS

Julie Kennedy – Engineering Updates: City Engineer Julie Kennedy reported that the bid opening for the Ottum Ave and CSAH 7 I&I projects would take place on Wednesday, August 31, 2005 at 10:00 a.m. at the Bigfork City Hall.

Kennedy has submitted to the Minnesota Pollution Control Agency for our reduction and we are awaiting a response from them.

Ordinance #122 & 123 – Zoning: Kennedy presented an aerial photo and zoning map for the Council’s review and approval. The changes discussed at the previous meeting had been made. The ordinances will be approved at the next regular meeting.

Liquor Store Lease: Shaw reviewed what had transpired at the last meeting. The Council had a number of offers before them and had voted to continue consideration of the offer from O’Brien/Koran for $250,000 and the offer from Miller/Zins for a $1500 a month lease with an option to buy. The Council had accepted the offer from O’Brien/Koran after Miller/Zins had withdrawn their offer. The O’Brien/Koran offer turned out to be an invalid offer and Miller/Zins agreed to reinstate their proposal. In addition to their original lease proposal, they are offering $10,000 for the inventory and are asking that amount be subtracted from the purchase price of the building should they choose to exercise their option to buy. Miller/Zins did not have an issue with the City selling the signage separately as they had motioned to do at the last meeting. A motion was made by Pifher and seconded by Zimmer to accept the offer from Miller/Zins, motion carried with Salmi opposing. Shaw will draw up the lease and be in contact with Miller/Zins tomorrow. Shaw suggested that Miller/Zins be contacted regarding what cleaning will need to be done before they take over. A motion was made by Zimmer to have Mayor and Clerk execute the lease upon its completion, seconded by Pifher, motion carried with Salmi abstaining for the reason that he was against selling it that way.

Fire Relief Association Benefit Increase: A motion was made by Zimmer and seconded by Lexvold to approve the increase of the annual benefit level for the Fire Relief Association to $1,400, Motion Carried Unanimously, (MCU)

Library Books: Storlie reported that the University of Minnesota Library had been contacted regarding old encyclopedias from the Bigfork Library. The University was not interested in taking them. Pifher moved to sell the encyclopedias on eBay through WeBayIt out of Grand Rapids, motion seconded by Lexvold and carried unanimously.

NEW BUSINESS

Mark Maki: Maki would like to sell the old airport mower. It is a 1949 model and is costing too much for repairs. He was quoted $1,300 just to repair one wheel. After talking with some dealers, Maki felt that we may be able to get around $1500 for it if we put it out on bids. He reiterated that it is not operational and does not meet OSHA safety requirements. A motion was made by Pifher to sell the mower on eBay through WeBayIt out of Grand Rapids, seconded by Zimmer, MCU.

Maki wished to extend many thanks to the VFW who is renting the old library space and have taken it upon themselves to renovate the space at their cost. He requested that a letter of thanks be sent to them.

Maki reported that the sentence-to-serve crew will be here in September to do some brushing and clean-up around the park, cemetery, and beach. He requested that the Council inform him of any other needed projects that they could complete.

Maki updated the Council on well #3. The extra pump that had been sent out for testing will not be able to be used. Because it was stored on its side for over five years, it is now ruined. Maki has received a quote for $2,500 to install a new pump for the well. Storlie has informed Maki that there is enough in this year’s budget for this small project. Zimmer asked Maki if the extra pump would have been usable if it had been stored upright rather than on its side and Maki answered that it would have been. Lexvold moved to direct Maki to order installation of a new pump, motion was seconded by Pifher and carried unanimously.

Maki reported that the Savich lift station has been repaired.

Zimmer asked about work done on Ash Street recently. Maki explained that it was a private line being redone and that he was there to take pictures and obtain accurate plans to be kept on file for the Public Works Department. He stated that he will be doing this for all future projects in the City with the hope that we will eventually have accurate records of all infrastructure in place.

Salmi asked Maki about the door on the airport bathroom and about the need for repainting of the building. Maki is aware of these items and has budgeted for them for 2006. Salmi reported that he had counted at least 21 cracks in the runway. Maki is also aware of this and has already requested quotes on patching. He explained that a special mix of tar must be used on runways and the manufacturing companies only produce the mix at certain times. We will be contacted when they are producing it and it will be patched. The money for this was previously allocated by the Council and Maki has obtained some donations to help as well. Salmi wanted to know if the mound system at the airport could have a separate electric meter so that we know exactly how much usage it has. Maki has already been working on this issue.

Salmi reported that there is a piece of steel sticking up near the Lutheran Church that should be removed. Maki stated that Dave Waters has been asked seven times to cut this piece of steel off when he has been mowing in the area. Maki will take care of it himself first thing tomorrow morning.

Budget Committee: Tendrup and Zimmer are both willing to serve again on the budget committee. Motion by Pifher to appoint Tendrup, Zimmer and Storlie to the committee, seconded by Lexvold, MCU.

Transfer: Motion by Pifher, seconded by Lexvold to approve the transfer of $2,301.15 from the general checking account to the Bigfork Wilderness Celebration savings account.

OTHER BUSINESS

Minnesota Rural Water is conducting a seminar on securing funding for small water/wastewater systems and Maki would like to attend. Motion to approve Maki’s attendance at this conference by Pifher, seconded by Zimmer, MCU.

Storlie provided copies of a resolution setting a public hearing for the tax increment financing for Legacy Development. Motion to approve the resolution by Pifher, seconded by Lexvold, MCU. This public hearing will take place on Tuesday, September 27, 2005 at 7:00 p.m.

Storlie reported that the listing agreement for the city lots for sale on Cedar Street has expired and asked the Council if they would like to re-list with the realtor or put the lots for sale on bids. It was determined that bids would be called for. Tendrup requested that Storlie check into how much is needed from the sale of the lots to repay the 2004 water/wastewater bond.

Storlie reported that she had received a call from someone interested in purchasing the bike rack at the City Park. Tendrup stated that we would be applying for a recreational grant to make improvements to the park and we may want to hang on to the bike rack. The rest of the Council agreed that with promotion of the park, it may get more use.

There being no further business, Mayor Tendrup adjourned the meeting at 8:05 p.m.

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.