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

City of Bigfork

Regular Meeting February 8, 2005

Members Present: Mayor Amy Tendrup, Jean Lexvold, Bob Zimmer, Amy Pifher and Richard Salmi Absent: none Also Present: Mark Jackson, Bill Pifher, Catherine McLynn, Gus David, Julie Kennedy, Dick Grabko, Mike Larson, Joyce Holsman, Connie Maki, Dick Maness, Dave Buck, Dave Waters, Melody Jackson, Anne Firman, Marilyn Salmi, Jon Babcock, Marilyn David, Tim Collins, Anne Collins, Nathan Hale, Ginny Hale, Patti Dawson, Mary Holmberg, Florence Evensen, John McCann, Lonnie Kacon and Mike Bakke

Consent Agenda Motion by Zimmer, seconded by Lexvold to approve the consent agenda as follows: #1- approval of the minutes of the January 11th regular and January 25th special City Council meetings #2- approval of the Police Report for January 2005, report is attached to the minutes as Appendix A #3- approval of the library report for January 2005 of 88 books checked out and 27 readers using the library #4- approval of the January 2005 budget report #5- approval of the Public Works Department reports for January 7, 2005 through February 4, 2005, reports are attached to the minutes as Appendix B #6- approval of the claims for payment in the amount of $60,733.14, including the January 14th and 31st payrolls. Motion Carried Unanimously (MCU).

OLD BUSINESS:

Liquor Store Special Election: Storlie reported that she and City Attorney Andy Shaw had met with County Auditor Bob Zuehlke as directed by the Council. The County is willing to do a mail-ballot special election for the City. Shaw has prepared a resolution that the Council will need to pass. This resolution calls for the special election and sets forth the form of the question to be used on the ballot. Storlie explained that the Council would also need to choose a date for the election and that Mr. Zuehlke had suggested either June 7th or June 14th as possible dates. Zimmer reviewed that we are now required to hold this election and therefore made a motion to pass Resolution 02-08-2005 and to set the election date for June 7, 2005. The motion was seconded by Lexovld, MCU. (Resolution is attached to the minutes as Appendix C.)

At this time in the meeting, Mayor Tendrup moved the letter to the cable company up on the agenda. Storlie read the letter she had written to North American Communications Corporation regarding the problems with the cable reception. No response has been received from the company yet. A resident of the Condor Apartments stated that the cable company technician had called to tell her that he will be here tomorrow and the next day and is trying to get a new satellite in for two of the channels. Zimmer volunteered to contact MediaCom to see if they would be interested in providing cable service to the City of Bigfork in the event that our current company does not fix the problems. Motion by Salmi and seconded by Pifher to allow Zimmer to do this, MCU.

Short-Elliot-Hendrickson - Julie Kennedy: Kennedy briefly reviewed a memo she had put together regarding concerns over water/sewer rates and grant monies. This memo compared the City of Bigfork’s rates to the cities of Big Falls and Hill City. These two cities are similar in size to Bigfork and have recently gone through water and/or wastewater improvement projects. For wastewater, the average Bigfork resident pays 7% less than Hill City residents and 43% less than Big Falls residents. For water, the average Bigfork resident pays 18% less than Hill City residents and 63% more than Big Falls residents. It should be noted that Big Falls recently went from a $10 per month wastewater charge to a $35 a month charge in order to comply with Rural Development guidelines. Also, they are still at a $10 per month minimum for water and they are subsidizing their system through other City funds. Hill City paid for a recent wastewater project with 16% grant and 84% loan money. Big Falls received 30% grants and 70% was paid for by loan money. Kennedy stated that we are hoping to get a little better grant to loan ratio, but it is clear that obtaining 100% grant funding is not realistic. Grabko added that the cities of Deer River and Coleraine have had similar situations with grant money awards. He stated that grant money is harder to come by and that funding sources feel that rural communities have not charged sufficient rates for water and wastewater in the past and now need to strive to become self-sufficient. This is why they are requiring minimum user rates to be in place before communities are eligible for funding. Salmi stated that he had talked with Saxhaug and other legislators and they don’t know where they will be at at the end of the session. Salmi stated the taconite industry is coming back and money will be available. He asked what SEH considers the most important issue at this time and stated that he feels it is the inflow and infiltration (I&I). Kennedy agreed with Salmi that the I&I in our system is a huge problem. She stated that Public Works Superintendent Mark Maki has done a great job working on this issue already. Kennedy stated that this is why we are looking at approximately $36,000 in the short-term loan application for I&I repair. Salmi felt that all of the City’s big problems and projects should be put on hold until there is money from IRRA. Grabko stated that, although the future of the taconite industry is looking positive, IRRA’s focus is currently on economic development, and not on community water/wastewater projects. They are not investing funds into public utilities and Grabko does not feel this will change in the foreseeable future. Kennedy commented that we will be utilizing IRRA funding that will reimburse us for the cost of grant/loan applications. Salmi asked County Commissioner Catherine McLynn to comment on economic development. McLynn felt that the City of Bigfork is on track with economic development compared to the rest of Itasca County. She cautioned against moving too fast with any of these projects. Salmi stated that in order for us to bring more people into our community, we have to solve the I&I because the MPCA won’t let us add any more connections. Kennedy verified that we are not allowed at this time to connect any more services to the City sewer system until the I&I issue has been brought under control. Zimmer felt that that’s why we need to move on the short-term loan projects, and we can’t wait seven to ten years for IRRA to come up with water/wastewater funding. Salmi stated that is why we have to find out from the legislators where we are at. Grabko commented that grant funding sources and legislators will want to know if the City has pursued other funding, and has been working to help themselves, before they will consider granting any awards. Kennedy added that we don’t want to risk losing the potential housing developments that are on the horizon for the near future, and that is why we are doing the short-term loan in order to move on these issue right now.

Salmi had a question on the Third Street utility extension that was discussed at the January meeting. Tendrup explained that in 1997, water and sewer was extended down Division Avenue. The properties down Third Street, which intersects Division Avenue, were assessed for this project, however they do not have immediate access to water or sewer. The lines are stubbed out on Division Avenue, but do not run down Third Street to their property lines. Tim and Anne Collins remembered that when this project was done in 1997, the agreement was made that those property owners would be responsible for running the lines down Third Street to their property. City Council minutes and project records do not reflect this. The Collins’ felt that more research should be done. The Council determined that Storlie would work with Andy Shaw to research what was done, who was assessed, and who will be responsible for running the lines down Third Street.

Salmi felt that now that we are working on the I&I problem, the water and sewer rates should come down. Kennedy clarified that the maintenance costs will go down, however the rates probably would not because our system is not yet self-sufficient. Any cost savings that are realized should be put toward building up reserve funds for future repairs and improvement projects. If this is done, in the future we will not need to subsidize the system or borrow funds for repairs and improvements.

Zimmer asked Catherine McLynn what was happening with the culvert on Division Avenue. McLynn stated that it has been looked at. She suggested that the Council adopt a formal resolution asking the County to put this item higher on the priority list. She added that the City should be prepared for discussion as to whether or not the City would take over the road once it is repaired. A motion was made by Zimmer and seconded by Lexvold to have a resolution prepared for the next meeting, MCU.

Grabko returned to the original issue of a timeline on the long-term funding projects. He reviewed that even if the Council granted approval to start on the process tonight, funding isn’t available until the 2006 construction season. He reminded the Council that it will cost $2500 for the community development survey that needs to be done, as well as $7000 to put the applications together. One-half of these costs is reimbursable through IRRA. A motion was made by Zimmer and seconded by Salmi to begin the process as discussed, MCU.

NEW BUSINESS:

Airport Land Lease: This item was tabled until Shaw would be available to comment.

Bill Pifher – Deer Feeding Ban: This item was tabled as Mr. Pifher had to leave prior to it being addressed.

Wiring of City Hall for Play: Maki explained that the play group would like to bring in an electrician to install 220 voltage switches for lighting for the play performances. They would do this at their own expense. Maki added that as long as the electrician will be here, he would like to fix some problems with the wiring in the City Clerk’s office. Motion was made by Lexvold and seconded by Pifher to allow the play group to hire an electrician to make the changes and to allow Maki to utilize the electrician for some additional fixes, MCU.

Liquor Store Commission: Tendrup stated that she had read the minutes of the last Liquor Store Commission and was concerned that the Commission had adjourned all meetings until such time as the City Council directed them to meet again. She felt that the Commission should continue to meet. Zimmer felt that it was not productive to meet due to the uncertain future of the facility and stated he did not know what actions it would be wise to make at this time. Mike Larson asked the Council what the special election was for as there were a number of rumors circulating about it. Tendrup explained that the election will ask the question of whether or not the City shall continue to operate the Picaroon Saloon. Larson had some concerns regarding parking, as he is moving his restaurant business into the neighboring building. He asked if he could get an easement for parking from the City. Storlie will bring this up to Shaw for more information. Tendrup returned to the question of whether or not the Liquor Store Commission would continue to meet. Holsman stated that the purpose of the Commission was to see what could be done to improve the business and now there isn’t anything to discuss until after the election results are known. A motion was made by Zimmer that the Commission not meet. As there was no second to the motion, Tendrup stated that the Commission should continue to hold meetings at the previously appointed dates and times. Zimmer stated that he was resigning his position on the Commission.

Council use of Resources: Tendrup explained that in order for a Council member to make contacts on behalf of the City, they must have prior Council approval to do so. This applies to contacting our City Attorney, City Engineer, etc.

Training for Supervisors: Maki would like to attend training for supervisors that is being offered in Duluth this March. The cost for this training is $330. A motion was made by Lexvold and seconded by Pifher to allow Maki to attend and to pay mileage, meals and lodging, MCU.

Celebration Committee Liaison: The Wilderness Celebration Committee has requested that a member of the City Council join their committee and act as a liaison between the committee and the Council. Amy Pifher volunteered to do this.

Liquor License Application: A liquor license application was received from Gus David for an off-sale liquor license. It was not known if the City was able to grant an off-sale license being there is a municipal liquor store. Motion was made by Zimmer and seconded by Lexvold to acknowledge receipt of the application and to contact Shaw for direction. Motion carried with Salmi abstaining, giving the reason that he wanted Shaw to look at it first.

Donation of ASV for Snow Removal: Maki stated that Darrell Powell has volunteered to donate his time and the use of his ASV to assist the public works department with snow removal. Maki was previously doing this with his own machine, however it is now broken and Powell has volunteered to help out. Connie Maki wanted it clarified that Mark Maki has also been donating his time and the use of his machine as there are rumors going around that the City is paying him extra for this service. As per prior agreement with Maki, the City pays for gas and oil for the machine when it is used for City snow removal, and nothing else. A motion was made by Lexvold and seconded by Pifher to accept Powell’s offer to donate his time and the use of his machine for snow removal, MCU.

OTHER BUSINESS:

Gus David asked if the Council would consider adding $15,000-20,000 to the proposed short-term loan to buy proper snow removal equipment. Kennedy offered to check into the possibility of this.

A land use permit application was received from the Huskie Café for remodeling of their new building. A motion was made by Zimmer and seconded by Lexvold to approve the permit, MCU.

Mark and Mel Jackson asked if a map of the City was available that showed all the City street names. They have been asked by Gopher State many times for the correct street names to be used for any calls. Storlie will mail a copy of the current City map to the Jackson’s. Tendrup noted that it was in the budget for 2005 to get street signs installed.

Tendrup announced that the Council would move into a closed meeting to discuss disciplinary issues. The Council met briefly to review the issue at hand, and then, at the request of the employee in question, the meeting was reopened to the public. Storlie explained that Public Works Superintendent Mark Maki had given a three-day unpaid suspension to Public Works/Maintenance Worker Dave Waters for failing to plow snow when Maki was out of town. According to the City personnel policy, the City Council must approve any unpaid suspensions, therefore the Council was meeting in order to either ratify or reject Maki’s actions in imposing the discipline. The Council first asked for each person involved to give his side of the story. After hearing both sides, along with comments from audience and council members, the Council made the decision that they would ratify Maki’s actions and uphold the discipline that was imposed. The motion was made by Zimmer and seconded by Lexvold with all members voting in favor except for Salmi who voted against.

There being no further business, Mayor Tendrup adjourned the meeting at 9:15 p.m. and announced that a closed meeting would be held immediately for a performance review of Public Works Superintendent Mark Maki.

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

Bigfork Police Department Police Report January 2005

3 19:06 contempt/violation of a court order 7 18:30 m.v. crash two vehicle no injuries 7 20:40 illegal use of tobacco by a minor 11 05:41 suspicious vehicle 25 17:36 lockout 26 15:44 5th degree assault

Appendix B

Public Works Department Report January 7, 2005 – February 4, 2005

§ Plow snow 126.5 hours combined § Plow airport 16 hours § Skid Steer 14 hours § Backhoe 4 hours sent back to owner, unsafe § Remove rags, plastic pipe, Powell Lift Station § Test Well #3 and draws, flows, kicked out at 1.2 hours, flow test start 68 gpm § Urinal at Pic, new parts installed § I&I investigation, view tapes, get prices on refurbishment § Snow removal from roof above Angie’ s office, leaking § Met with performing arts group on electrical needs § Monthly paperwork § Had county scrape streets twice, remove ruts § Trailer park water leak, water shut offs § Attend meeting in Grand Rapids with Bob Zimmer on Fire Dept. § Sample airport and quarterly influent to Grand Rapids for pick up § Repair plow green truck, short in cable § Met with Dick Salmi on public works projects

National Pollutant Discharge Elimination System Minnesota Pollution Control Permit

Levels 5 day COBD Month Average Week Average 25 mg/L or 85% removal 40 mg/L (8.82 kg/day) 55 kg/day

Total Suspended Solids 45 mg/L (99.2 kg/day) 65 mg/L (143.3 kg/day) 65% removal

Fecal Coliform Group 200 organisms/100 mL sample

PH not less than 6.0 or greater than 9.0 No floating solids or visible foam No oils, grease to produce visible sheen or color film on water

Total Phosphorus 4mg/L average calendar year

Discharge periods April 11-June 30 September 1 – December 15 Pond draw down rate primary & secondary: 6: per day max

COBD dilution ratios to river 10 to 1 ratio at CBOD’s 20-25 mg/L

January 2005

Wastewater 1.676 mg Water .831900 mg I&I .844 mg Snow 37”

Chemical Usage Pot. Perm 47 gal solution 11.75# @ 1.9552 $10.95 Flouride 56 Gal solution 5.6 gal @.3958 2.22 c/2 35# @ 1.1617 40.65 caustic soda 10 gal @ 4.1285 41.29 $95.12

Backwashwater unmetered Indication water = 287 Backwash 83” 10375 10662 gal

Gal Cost Miles White 143.7 259.45 625 Green 122.3 288.61 585

Appendix C

RESOLUTION 02-08-2005

RESOLUTION CALLING FOR A SPECIAL ELECTION TO DETERMINE WHETHER THE CITY SHALL CONTINUE OPERATION OF THE MUNICIPAL STORE, AND SETTING FORTH THE FORM OF THE QUESTION TO BE PLACED ON THE SPECIAL ELECTION BALLOT

THAT WHEREAS, the Bigfork City Council has determined that the operation of the municipal liquor store has resulted in a net financial loss during the 2002 and 2003 years of operation, and;

WHEREAS, pursuant to Minnesota Statue Chapter §340A.602, the City held a public hearing on the question of whether the City of Bigfork shall continue or discontinue the operation of the municipal liquor store, and;

WHEREAS, subsequent to the hearing, the City Council received a petition signed by more than 5% of the registered voters in the City of Bigfork calling for an election to determine whether the City shall continue or discontinue operation of the municipal liquor store;

NOW, THEREFORE BE IT RESOLVED, that pursuant to Minnesota Statue Chapter §340A.602 the City Council of the City of Bigfork calls for a special election to determine the question of whether the City shall continue or discontinue the operation of the municipal liquor store,

AND BE IT FURTHER RESOLVED, that the form of question to be placed upon the special election ballot shall be as follows:

SHALL THE CITY OF BIGFORK CONTINUE OPERATION OF THE MUNICIPAL LIQUOR STORE

YES_____

NO_____

BY VOTING “YES” ON THIS BALLOT QUESTION, YOU ARE VOTING FOR THE CITY OF BIGFORK TO CONTINUE OPERATION OF THE MUNICIPAL LIQUOR STORE.

BY VOTING “NO” ON THIS BALLOT QUESTION, YOU ARE VOTING FOR THE CITY OF BIGFORK TO DISCONTINUE OPERATION OF THE MUNICIPAL LIQUOR STORE.