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

City of Bigfork

Public Hearing and Regular Meeting August 9, 2005

Members Present: Mayor Amy Tendrup, Bob Zimmer, Jean Lexvold and Richard Salmi

Absent: Amy Pifher

Also Present: Julie Kennedy, Mark Maki, Gerry Wenner, Connie Maki, Lonnie Kacon, Gus David, Renee Willett, and Robert Johnson

Mayor Tendrup called the public hearing to order at 6:00 p.m.

Tendrup explained that comments would be taken regarding the proposed zoning ordinance.

Gus David commented that the proposed ordinance only allows residents to cover thirty percent of their lot with building, paving, etc. He felt this percentage should be higher. Tendrup reviewed that thirty percent is the standard and the reason behind it is to control drainage.

Tendrup stated that the Planning Commission would like to remove the section requiring permits for temporary dwellings. It was also recommended to require permits for the placement of fill. A permit for the placement of more than 100 cubic yards of fill will require a $20 application feel. Permits for less than that will not have a permit fee. This is due to the fact that the City Engineer will need to review fill placement to ensure that proper drainage and dust control will be maintained. Kennedy noted that the fee for the fill permit might need to be higher in order to cover the cost of review. Due to the shorelands and wetlands in our area, more work is involved in reviewing these permits. It was suggested that $100 would be a more appropriate fee. Kennedy suggested that permits were not needed for any more than 250 cubic yards of fill. These changes will be made before the ordinance is passed.

Tendrup stated that all comments made at the public hearing held in April were taken into consideration by the Planning Commission and many changes were made according to the views expressed by the public.

Salmi had a question on the zoning map. Clarification and corrections were made to the map. Kennedy will print a new map for the City. Salmi felt that the area on North Highway 38, near the Northern Star Co-op’s propane storage tank, should be zoned industrial rather than agricultural. Tendrup explained the Planning Commission’s reasoning behind zoning it as they did and stated that the current use is allowed in an agricultural zone.

Salmi wanted to know if current buildings and uses would be affected once the new ordinance is in place. Tendrup explained that they are grandfathered in. Kennedy noted that non-conforming uses are addressed in the ordinance and explained the different types and rules.

Tendrup noted that the ordinance can always be changed by the Council if it is found that it is not working for the community.

Salmi asked how many homes were in the community. Kennedy stated that the community survey showed 214 households. Salmi asked if the zoning ordinance covers new buildings and Tendrup explained that it would and it would regulate any additions to existing buildings as well.

Tendrup noted that developers and business people want to see a zoning ordinance in place before they come into a city.

Salmi asked who would be the zoning administrator and Tendrup stated that those duties would become part of the City Clerk’s job and the Public Works Administrator and City Engineer would assist.

Gus David suggested adding a sign to the city limits sign stated that zoning permits are required. Kennedy will get examples of wording for this type of signage. Bob Johnson also suggested putting an ad in the paper notifying the public of the new ordinance. Storlie clarified that the adoption of the new ordinance needs to be published by law.

There being no further questions or public comment, Mayor Tendrup adjourned the public hearing at 6:39 p.m.

Present: Mayor Amy Tendrup, Bob Zimmer, Jean Lexvold, Richard Salmi and Amy Pifher

Absent: none

Also Present: Julie Kennedy, Mark & Connie Maki, Gus David, Robert Johnson, Warren & Caroline Welch, Gerry Wenner, Andy Shaw, Julie Aakhus, Gene Rajala, Nita DelCastillo, Bob Bushway, Mark & Mel Jackson, Blessing Rahier, Dave Zins, Chris Miller, Terry Miller, and John & Marianne Sonsteby

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

Tendrup reviewed the results of the closed meeting held on July 26, 2005. At the meeting, a performance review of City Clerk/Treasurer Angie Storlie was conducted. Storlie received 45 out of 45 points on her review.

Consent Agenda Motion by Zimmer, seconded by Lexvold to approve the consent agenda as follows:

#1- approval of the minutes of the July 12th, July 18th and July 26th meetings

#2- removed from consent agenda

#3- approval of the budget report for July 2005

#4- approval of the Public Works Department report for July 2005, report is attached to the minutes as Appendix A

#5- approval of the City Clerk’s Office report for July 2005

#6- approval of Resolution 08-09-2005 (1): Discontinuing Liquor Store Commission

#7- approval of a land use permit for Keith Loehrer for three mini storage buildings

#8- approval of the transfer of $3,634.99 from the water fund to the 1997 Bond fund and $3,634.99 from the sewer fund to the 1997 Bond fund as previously budgeted for

#9- approval of the claims for payment in the amount of $42,374.70 including the July 13th, 15th, and 28th payrolls

Motion Carried Unanimously (MCU).

At this time, Mayor Tendrup introduced Gerry Wenner of MN Department of Employment and Economic Development to present the City of Bigfork with E-Commerce Ready Certification. Bigfork is the 41st city in the state to achieve this certification. Mr. Wenner commended the City of Bigfork on behalf of the Governor and the State of Minnesota Department of Employment and Economic Development for their initiative in their effort. He presented Mayor Amy Tendrup with a certificate which will be displayed in the City Clerk’s Office.

OLD BUSINESS:

Julie Kennedy, Short Elliot Hendrickson – Engineering Updates: City Engineer Julie Kennedy was present with engineering updates. She reported that Our Lady of the Snows Catholic Church board has had a meeting and they are still willing to assist the City with our needs. We will be working with City Attorney Andy Shaw to obtain easements for the road.

Kennedy has had a conversation with Tony Carter, Itasca County Highway Engineer about possible road reconstruction on Golf Course Lane. One of the City’s I&I projects will require bit patching on this road. Kennedy has talked with Itasca County and they are willing to completely reconstruct that portion of the road with curb and gutter at their expense as long as all of the City’s utilities would be updated at that time. This would require the City to directionally bore the watermain under the river in order to get it off of the bridge. We would be able to do this with the cost savings realized by the County paying for the road work. The County will continue to run the project through the City and they will reimburse the City for the cost of the road reconstruction. Kennedy feels that this would be a good agreement for the City to enter into. Salmi asked for clarification on what exactly the City would pay for. The City’s portion of this project is covered by funds from the hospital. Kennedy has estimated that this manhole is contributing 3600 gallons of water per day to the I&I problem. Kennedy recommends that the City delay the bid opening date in order to include the County’s plans for road reconstruction. Zimmer asked if it would still be done this construction season and Kennedy stated that it would, given good weather. A motion was made by Zimmer to delay the bid opening and enter into an informal agreement with the County to include the road reconstruction in the project, seconded by Salmi, MCU.

Kennedy’s next item was the short-term loan. The bonds were priced and the closing is on August 17th. The prices came in under the agreed upon amount. We can use this loan as a line of credit rather than getting the entire amount at one time. Maki and Kennedy will prioritize the next set of projects to be done and ask permission to call for bids on them at the August 23rd Council meeting.

Kennedy reported that the invoice for the community survey has been paid and we are now eligible to apply to IRR for reimbursement of ½ of those costs. She and Dick Grabko of SEH will be completing this application for us.

Ordinance #120 and #121: The Planning Commission has reviewed the liquor ordinance and is presenting the ordinance for approval by the Council. They also are recommending an ordinance for approval that sets the fees for each of the different types of liquor licenses. David commented that the fees set for on sale and off sale were very different and that is due to the fact that some license fee amounts are set by statute. Tendrup reviewed the prices for the different fees. They are as follows:

3.2 percent malt liquor on sale $75.00

3.2 percent malt liquor off sale 75.00

Temporary 3.2 percent malt liquor 10.00 per day

Off-sale intoxicating liquor 100.00

On-sale intoxicating liquor 1500.00

Sunday on-sale intoxicating liquor 200.00

Combination on/off sale intoxicating 1600.00

Temporary on-sale intoxicating liquor 10.00 per day

On-sale wine license 250.00

One day consumption and display permit 10.00 per day

Approval of the issuance of a consumption and display permit by the Commissioner of Public Safety 300.00

Zimmer has noted that there have been several wine and cheese tastings going on in the area and asked where those types of events would fall in the licensing. Tendrup thought that it would be included in the temporary on-sale license.

Zimmer moved to accept ordinance #120, seconded by Lexvold, MCU. Zimmer moved to approve ordinance #121, seconded by Lexvold, MCU.

Liquor Store Clean-Up: Storlie reported that the City is allowed to sell items on eBay and that it is recommended that they contract to do so. It is not recommended that a City employee do this for the City. Zimmer made a motion to sell the remaining signage and promotional items left at the liquor store through WeBayIt out of Grand Rapids, MN, seconded by Lexvold, MCU. Zimmer asked if we contract with them and they don’t sell, what happens to them. Storlie stated that they would get rid of them for us. David asked if it wasn’t a better idea to let the people who buy or lease the building have first choice on buying them. Tendrup stated that if it is sold on eBay, everyone will have a chance to buy.

Jeff Holsman has notified the City that the portable bar stored at the Picaroon belongs to him and he is willing to sell it for $200.00. Zimmer moved to have Holsman remove his bar from the premises within 10 days, seconded by Pifher, MCU.

Liquor Store Lease/Sale Proposals: Shaw noted that a special meeting was held on August 4th in order to entertain proposals. There were two proposals brought forward at that time. Since that time, three more offers have come in. The longest running offer has been from Miller and Zins for a $1500/month, 12-month lease with an option to buy within that 12 months. The second offer is from John Sonsteby for purchase on a contract for deed over a period of 10 years for $158,000 which includes the inventory. Another offer is from Nita DelCastillo for $135,000 also on a contract for deed and purchase of the inventory for wholesale amount. There is an offer from Felds and Dullard for $153,000. The final offer is a purchase agreement from Gregory O’Brien and Norm Koran for $250,000. The Council also received a letter from Marshall Oelmann stating that he would like to be considered as someone who might make a serious offer, however he had not had time to form any real particulars.

Shaw suggested that, as far as dollar value, the lease proposal and the offer for purchase by O’Brien/Koran are the best. Tendrup noted that there had been a deadline set of noon today for receiving proposals and the offer from O’Brien/Koran came in after that time. Shaw stated that there are not hard and fast rules governing the sale of property and the Council should still consider this proposal. He suggested requesting that O’Brien and Koran meet with the Council to let them know what their plans are for the facility and find out if it is a serious offer. He reminded the Council that they need to be concerned with the way the business will be run. Gene Rajala felt that anyone interested in the place would be careful to run it in such a way that the City would not deny a renewal of their liquor license. Shaw explained that there has to be a good reason to deny a license renewal, such as violation of a liquor law. David asked if O’Brien/Koran had a liquor license in the state already. This was unknown. Shaw stated that the Council owes it to those who have made offers to let them know where they stand. He suggested calling a special meeting for next week to meet O’Brien/Koran. Zimmer felt that the new offer warrants a call to them to learn what their plans are. Shaw asked if the Council would like to eliminate any of the offers that are here tonight so that those people will know where they stand. Tendrup was not interested in doing a contract for deed. Zimmer moved to continue consideration of the two top proposals which are the offer from O’Brien/Koran and the lease proposal from Miller/Zins, seconded by Pifher, motion carried with Salmi opposing. Miller stated that they would like to withdraw their offer.

Shaw suggested that the Council enter into the purchase agreement with O’Brien/Koran contingent upon Zimmer, Salmi, Storlie and him conducting an phone interview of O’Brien/Koran to determine that they wish to operate a bar, and not something against the interest of the City, and that they are licensable. Motion to do as suggested by Shaw made by Zimmer and seconded by Lexvold, MCU.

Opening of Bids for the Swim Raft: There were no bids to open. It was determined to store the raft for the winter and put it up for sale again in the spring.

Appointment of members to the Personnel Committee: The Council had voted to form a personnel committee at their last regular meeting. A member of the Council, one resident, and one business person need to be appointed to serve on this committee along with the Mayor and the City Clerk. Jean Lexvold volunteered to serve on the commission as the Council member. Rajala asked what the purpose of the personnel committee is and Tendrup explained that it is to review personnel issues in order to save time at Council meetings and get more input from the business community and residents of the City on personnel matters. Ken Woods had previously stated that he would serve as a representative of the business community. Three residents had asked to be considered. They are Dave Schminkey, Lonnie Kacon and Connie Maki. Tendrup stated that she appreciates Connie’s offer, but feels it is a conflict of interest and cannot appoint her. Pifher moved to appoint Dave Schminkey, Ken Woods, Jean Lexvold, Storlie and Tendrup to serve on the personnel committee, second by Zimmer, MCU.

NEW BUSINESS:

Request for Airport Funding: Storlie has prepared a letter requesting funds from Itasca County in support of the municipal airport. Motion by Salmi seconded by Lexvold to send the letter as written, MCU.

Northern Star Propane Contract: Storlie presented the proposed contract for purchase of propane from Northern Star Co-op for the City. Maki and Storlie are suggesting that we purchase 4900 gallons for the upcoming heating season. Motion by Salmi to sign the contract, second by Pifher, MCU.

Itasca County Historical Society request for appropriation of funds: Motion by Zimmer to consider appropriation of funds for the Itasca County Historical Society in the 2006 budget, seconded by Lexvold, MCU.

OTHER BUSINESS:

Maki had several items for the Council the first being the airport tractor mower. He reported that it would cost $1330 just to repair one wheel. This mower is a 1949 model and is in very rough shape. Furthermore, the machine is not OSHA compliant. Maki feels that the best thing to do is upgrade equipment and he would like to request donations to help cover the cost of this. Maki reported that we can get through the rest of this season with what we have, but will need to look at upgrading equipment in next year’s budget. He is looking at a multi-use piece of equipment that can also be used for snow removal, excavating, etc.

Thein well has estimated the cost of abandoning well #2 at $2,200. It doesn’t pay to keep heating that well house when the test pumps have only shown the well capable of pumping 10 gallons per minute. The pump has been out of the well for 5 to 7 years and the motor is no good. The abandonment is not necessary at this time but we save on transportation costs if we do it at the same time as replacement of the pump on Well #1. This will be budgeted for next year. Salmi asked if the #3 well will carry us if #1 goes down. Maki reported that #3 currently runs on the weekends and it will hold us for the time being. #3 does need a motor change but as long as we don’t power surge it and take care of it, it will last until the needed repairs can be made.

Maki has started doing enzyme treatment in the lift stations and will shock the pond after our fall discharge.

Zimmer asked where we are at with getting water meters in the trailer park. The park owners have been supplied with all the information they asked for and we are waiting for word from them.

Salmi asked about the Savich lift station. Maki stated that the part is coming in as soon as our short-term loan funding is received and will be installed as soon as possible after that time.

Storlie reported that she is still waiting for quotes back on employee health insurance upgrades. This matter was referred to the personnel committee.

Motion to approve a $5,000.00 contribution to the Bigfork Fire Relief Association by Pifher, second by Lexvold, MCU.

Storlie provided copies for the Council of a timeline for the TIF district for Legacy Development that was prepared by Northland Securities. Northland Securities will be at the August 23rd meeting to request that the Council set a date for the required public hearing.

Mel Jackson asked about trailers moving out of the park and if they need a permit for that and she was informed that they do not.

Jackson’s second item was regarding the rules for the cemetery. The City’s current ordinance allows one plant stand per burial site. Jackson asked if she could have more than one if she continues to maintain the area as she has been. Tendrup stated that we should not go against our ordinance. Maki stated that the reason behind the ordinance is for ease of maintenance by the Public Works Department but that the Council could consider allowing a signed agreement between the City and any party wishing to take responsibility for the maintenance. A motion was made by Lexvold and seconded by Pifher to amend the cemetery ordinance to allow for agreements of this type to be made, MCU.

There being no other business, Mayor Tendrup adjourned the meeting at 8:24 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.

Appendix A

Public Works Department Monthly Report

Month of July 2005

Wastewater 2.324

Water 1.472

I&I 0.852

Snow/Rain 4.2

Chemical Usage

Pot. Perm 11# @ 2.1536 $23.69

Flouride

6# @ .4396 $2.64

Caustic Soda

6 gal @ 4.18 $25.08

Chlorine

16# @ 1.2569 $20.11

$71.52

.0000485/gal

Backwash Water

Indication water 378 gal

Backwash 12150 gal

Total backwash gal 12528

Trucks

Gallons Cost Miles

White 40 $90 373

Green 59 $149 338