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

City of Bigfork

Regular Meeting July 10, 2007

Members Present: Mayor Amy Tendrup, Eugene Rajala, Linda Koppelmann, Jean Lexvold and Richard Salmi

Absent: none

Also Present: City Engineer Julie Kennedy, Dave Schminkey, Joan Lester, Ann McGarry, Public Works Superintendent Chuck Almhjeld, Boone Danielson, Lonnie Kacon, Police Officer Clint Sova, Julie Aakhus, David Asher, Tim & Anne Collins, Gene Collins, Jim Manske, Al LaTrace, Mike Gorham, and Police Chief Jon Babcock

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

Public Forum: Tendrup asked anyone wishing to address the Council to do so at this time. As there were no public comments, the public forum was closed.

Tendrup called for changes to the agenda. Rajala wished to add the police situation and the well. The Bigfork Alumni Association asked to be added to the agenda. Motion to approve agenda as amended by Koppelmann, seconded by Rajala, motion carried unanimously (MCU).

Consent Agenda Salmi asked that the claims be removed for further discussion.

#1- approval of the minutes of the June 12th regular City Council meeting

#2- approval of the Police Report for June 2007

#3- approval of the City Clerk’s Office Report for June 2007

#4- approval of the Financial Report for June 2007

#5- approval of the Public Works Department report for June 2007

#6- removed for further discussion

Motion by Lexvold to approve the Consent Agenda, seconded by Koppelmann, MCU

Copies of documentation relating to any consent agenda item are available at the City Clerk’s office.

Commissioners' Reports: Rajala reported that there still is no appraisal back on the land adjacent to the cemetery. He asked about the merging of the cemetery fund with the general fund that was done a number of years ago and stated that people have questioned what happened to the perpetual care money when that merge was completed. Storlie explained that the funds that were merged were those within the general checking account and the perpetual care fund held for the City by Itasca County was still kept separate.

Salmi reported that the Minnesota Department of Transportation Aeronautics Division had completed an inspection of the airport but would not have a report back to the City for quite some time due to their back-log. He stated that it would be nice to have some Class V to fill in ruts at the end of the runway and near the bathroom facility so that those areas can be mowed. Tendrup asked if there were funds for this and Public Works Superintendent Chuck Almhjeld will check. Salmi reported that the mower at the airport needs repairs and he has talked to Almhjeld about this. The Flying Club is assisting Salmi with maintenance at the airport this summer.

Consent Agenda Item #6: Rajala questioned the claim from Short Elliott Hendrickson Inc. and verified that the amount charged for work on the well was in line with the quoted amount. Salmi questioned the claim from the Law Office of Shaw and Shaw and Storlie explained it covered work done on the proposed gas franchise ordinance which was on the agenda for later in the meeting. Salmi questioned the claim from Harris and Storlie explained it was the yearly maintenance fee charged by the City 's utility billing software vendor. Motion to approve claims paid in the amount of $20,257.02, including the June 15th and 29th payrolls, and to approve the claims for payment in the amount of $29,049.34 by Rajala, seconded by Salmi, MCU.

UNFINISHED BUSINESS:

Julie Kennedy - Engineering Updates: City Engineer Julie Kennedy of Short Elliott Hendrickson Inc. first updated the Council on the completion of the significant industrial user (SIU) agreement with Bergquist. The Minnesota Pollution Control Agency (MPCA) has notified the City that the Notice of Violation (NOV) requirements have now been met. The MPCA will continue to monitor the system.

The airport mound system rehabilitation project was addressed in a short memo from Kennedy. The corrective action plan that was discussed at the previous Council meeting has been submitted to the MPCA and is awaiting their approval. Kennedy has spoken with MPCA representatives who have told her that they agree with the concept of the corrective action; however they would like to have one more test done on the site in order to give a little more assurance that this is the best corrective action plan. Kennedy will see what the cost and time-frame is for getting the testing done. The schedule for the project includes advertising for bids at the end of July and awarding in August. Kennedy recommended that the Council give authorization for her to advertise for bids upon MPCA approval of the plans. She clarified that doing so would not commit the Council to anything as bids would still be reviewed by the Council, however if they felt uncomfortable giving authorization prior to seeing the plans, they could wait until the MPCA granted approval and then call a special meeting to authorize advertisement for bids. Koppelmann did not feel it was necessary to call a special meeting as everyone understood what the corrective action entailed and did not need to see the actual plans first. Rajala asked about a guarantee that the system would work this time and Kennedy stated that the testing required by the MPCA prior to their approval of the plan was done to prove that the plan would work. She also stated that the Council would have the option of requiring a warranty on the system as Salmi has suggested a number of times. Salmi asked if we would be using the same mound and Kennedy explained that the manifold and pipes within the mound itself appear to be working and so would be reused. The rest of the piping would be replaced and the mound materials would be rehabilitated by terra-lifting. There were concerns from Salmi and Rajala about what would happen if this fix did not work and the system failed again and they questioned if the system could be shut down if that were to happen. Kennedy stated that this corrective action plan is the best we can do at this point and if it fails again, we would have to deal with it. At that point, we would have tried two things on that soil, which everyone knows was not ideal for a project in the first place, and if it sill didn't work, her recommendation would be to shut the system down. Rajala wanted to know if any of the grants the City received for the system would need to be repaid if it was shut down. Kennedy will look into this. Salmi asked if the system would be removed from the City's permit and Kennedy explained that we only renew our permit every five years so it would remain with a status of "monitor-only" until our next renewal when it would be removed and no longer tied to the City's pond system. Rajala asked if the system, when working properly, would need chlorination and aeration prior to discharge and asked why the corrective action called for repair or replacement of the aeration units. Kennedy clarified that the aeration was pre-treatment would still be needed.

Rajala asked what type of heat protection would be used and Kennedy stated minimum specifications would be set in the bid documents and it would be up to the bidder to choose the product that would best achieve that specification. She added that the newest products on the market today are sub-grade tank heaters. Rajala asked about the cost of running the heaters and Almhjeld stated this would be covered by the monthly user fees paid by Bergquist. Salmi asked if the mound would be covered with blankets and Kennedy reiterated that it was likely that in-tank heaters would be used. Motion by Koppelmann to authorize Kennedy to advertise for bids, seconded by Lexvold, MCU.

Kennedy's final item was the proposal for Phase II of the well project that she was asked to prepare at the last meeting. After his research, Jeff Ledin of Short Elliott Hendrickson Inc. was not convinced that the current site of wells #1 and #3 was not an option for another well. Phase II entails SEH and the Minnesota Department of Health (MDH) looking for a probable site and then conducting sonic test drilling, analyzing data and doing a test well if an appropriate site is found. The cost for this is $10,550 plus the cost of sonic drilling which would be around $8,525. If a promising site is found, test well construction would be done at a cost of around $13,425. Kennedy stated that we have been taking baby steps up until now on this project and this is a much bigger step. Budgets need to be looked at. Rajala stated that he has talked to MDH and has reviewed the well logs for each of the wells. After doing some research and talking to well drillers, he feels that the City should first look at the option of repairing and improving one of the existing wells before a lot of money is spent on finding a site for a new well and then constructing it. Motion by Rajala to put the SEH proposal on hold until we get information on the possibility of improving the existing well(s), seconded by Lexvold, MCU. A representative from Thein Well Company will be up in the near future to perform routine inspections and he will be consulted on this issue. Kennedy cautioned that the Council should be sure to inform any consultants that the City cannot afford to lose either well #1 or well #3.

Resolution 2007-12: School Liaison Officer Contract: Rajala first wanted to discuss the agreement with Police Chief Jon Babcock on his employment situation and made a motion to end the agreement with him so that the City could get started on a new track. Motion was seconded by Salmi. Tendrup stated that the City agreed to review the situation after six months time and it was her opinion that the current employment set up is working. Rajala stated that Babcock was old enough to retire and the money should not be split up as it is now. He did not feel that the City benefited from having Babcock on the payroll and stated that Babcock should not have retired at the end of last year if he didn't intend on fully retiring. Babcock stated that he wanted to continue being the school liaison officer as it is a good program that he wants to continue to be a part of. He didn't understand Rajala's statement of splitting up the money. Rajala clarified that he did not feel that the City should be struggling to pay a second officer a decent wage while the school liaison officer contract funds are being used to pay Babcock. Rajala reiterated that if Babcock wanted to retire, he should retire. Babcock argued that there are a number of police officers who are semi-retired and it is a very common concept. He requested that if the City is seriously considering terminating his employment, he should be given a chance to prepare his defense. Tendrup noted that the current employment situation was a decision by the Council and at the time it was made it was stated that it would be reviewed in six months. Rajala stated that they were reviewing it right now. Salmi felt that the City needed to use the school liaison officer contract money to pay for the officer we have now, which is Sova. Salmi stated that the City is hurting financially and the Council needs to do what is best for the City. He felt that Sova was doing most of the police work at this time anyway. Tendrup stated that the motion on the table was to terminate the position of Police Chief. Rajala clarified that his motion was to end the contract with Babcock so that he would be fully retired. Tendrup called for a vote on the motion and it carried with Tendrup and Lexvold opposing. Tendrup noted that another meeting would need to be held to discuss updating of job descriptions and the legality of all of this. Rajala made a motion to review job descriptions, to keep the part-time police officer employed as-is in the meantime and to have the part-time officer serve as the school liaison officer, seconded by Salmi. A. Collins asked if the Personnel Committee would be used to review the job descriptions and Tendrup answered that the Personnel Committee typically handles those types of issues. A. Collins stated that there were only two members present at the last Personnel Committee meeting and asked if the City planned on continuing that committee if members continued to be absent. T. Collins asked how many meetings have been missed by certain members and stated that the Fire Department had a rule that if you missed three meetings you were out. He added that there were people who wanted to serve on the Committee but couldn't because the positions were full. Tendrup argued that the City advertised each time there was an opening and it was difficult to keep all the committee seats filled with people who consistently attended. A. Collins asked to replace Dan Infante on the Personnel Committee as he has not been attending the meetings and Tendrup stated that committee seat was to be held by a business owner. A. Collins and T. Collins argued that their ownership of a commercial property in town qualified them to serve. Tendrup stated that when the Committee was originally created, it was to be made up of the Mayor, one Councilor, one resident and one business owner. She added that it may be time to revise that set-up since there has been difficulty keeping all of the seats filled.

Tendrup called for a vote on the motion on the table and the motion carried unanimously. Babcock asked for clarification as to whether or not he was done and Tendrup stated that she guessed he was. Rajala stated that Babcock should turn in his keys and equipment. Tendrup noted that when the positions at the liquor store were terminated there was a two-week time period given. Salmi and Rajala did not feel that was necessary.

Rajala asked Sova if he was willing to take the part-time school liaison officer job and he stated that he was. Rajala asked why the squad car was taken to Effie to be fixed when it broke down. He felt that is should have been repaired by a Bigfork business. Clint explained that he had an appointment lined up at Powell's Auto but they were too busy to take it and then the water pump went out and needed to be repaired as soon as possible so he sent it up to Effie Country Service.

Tendrup addressed the resolution for the school liaison officer contract. The resolution authorizes the Mayor and Clerk to execute the contract with School District #318. Motion to pass Resolution 2007-13 by Koppelmann, seconded by Rajala, MCU.

Dave Schminkey - Skating Rink: Schminkey reported that there have been some changes to his plans for the skating rink since he last spoke to the Council. There is a desire to have a facility that can be used for hockey, broomball, volleyball and horseshoes and Schminkey has incorporated each of those things into his plans. He is looking at building a 137 by 70 foot rink with a four foot high chain link fence around it. He reported that John Ostendorf has already agreed to donate sand for the project. The issue of wetlands has come up and Schminkey has asked Kennedy to look into what is and is not allowed in that area. Schminkey is also meeting with the REA, the Fire Chief, representatives from The Bergquist Company, and Rural Community Coordinator Tim Johnson to discuss the project and possible funding sources. Minnesota Power has agreed to put in the meter and circuit breaker at no cost. Schminkey pointed out that the monthly electric bill will need to go in someone's name and asked if the City would be willing to take that responsibility. Tendrup stated that in granting him permission to pursue this project in the first place, the City was basically agreeing to take over the on-going costs of operating and maintenance. Schminkey reported that he has a trailer that could be used as a warming house and Storlie is awaiting information from the City's insurance company as to what would be allowed for a heating source, building specifications, etc.

Rajala felt that Schminkey should get the project going before asking the City about all the minute details. Schminkey responded that if there are no wetland issues, he plans on getting started right away and asked the Council's permission to continue with the project. He also asked if the City Public Works Department could mow the grass and spread the sand. Almhjeld stated they could do so if Kennedy finds that the wetlands would not be affected. McGarry stated that the area being discussed was indeed a wetland and could not likely be used. Alternate locations were suggested. Tendrup asked if Schminkey wanted permission to get started if the wetlands were not an issue. Schminkey stated that he also wanted input from the Council and if a different location was desired, he would look for one. Motion by Rajala, seconded by Lexvold to give permission to keep looking into it and report back, MCU.

NEW BUSINESS:

Alumni Association: Joan Lester from the Alumni Association was present to review the Buy-A-Meter campaign progress for the Gordon Campbell Track. There is just one week left to sell meters and have them qualify for the dollar-for-dollar match from Bigfork Valley Hospital. There are 127 meters left to sell out of 800 total. Support has been broad and this has been a great fund-raising project. Lester was present to give the City one final opportunity to purchase a meter, though she stated that it was made clear through discussion earlier in the meeting that the City was not in good fiscal condition. Councilman Rajala made his contribution and was thanked.

Mike Gorham - Northwest Gas: Gorham was present with a proposed gas franchise ordinance for the Council to consider. Gorham wishes to install a natural gas distribution system within the City of Bigfork. He introduced his business and explained that he owns and operates 13 small-town systems at this time. He administers two state-owned systems and four metered systems, similar to what is being proposed for Bigfork. He also owns a truck-delivery operation. He explained that a pipeline makes sense in Bigfork due to the population cluster. He pointed out that once the capital has been spent to install the system, there is no longer a need to have trucks out on the road, making this the least total cost solution. He added that he is currently in need of additional storage to support his truck-delivery business and Bigfork is a great location for that. He informed the Council that he already has agreements with Legacy Development and the WilderNest Apartments to hook them up and he would like to eventually expand to the rest of the City in phases. He explained that the lines are installed by plowing so there is minimal surface disruption. It was clarified that residents would not be required to hook up to the system once it was installed and that Northwest Gas would have to compete for business just like every other provider in the area. Gorham has talked with City Attorney Andy Shaw and drawn up a proposed franchise agreement. This agreement would give Northwest Gas the privilege of using the public ways within the City of Bigfork to run their pipelines. Rajala asked what the advantage to the City was in granting the franchise other than providing residents with another heating option. Gorham responded that was basically it, adding that the City would have the right to impose a franchise fee if they so chose; however they should note that if they did, the cost of those fees would simply be passed along to the users of the system. He added that it was not really fair to charge a fee on pipeline propane but not on any of the other fuels in town. Rajala wanted to table the issue until there was more time to talk to residents about it and suggested having a public meeting on the issue. Tendrup asked Gorham if it would set him back to wait another month for a decision. Rajala wanted a comparison of what the rates would be as compared to what is available in Bigfork now. Gorham stated that their prices per gallon are typically fifteen to twenty cents cheaper than truck-delivery prices at any given time. He added that all the City needs to be concerned with is giving his business permission to put their system in the public way and most other cities he has dealt with have left the rates, advertising and similar issues to him and the other providers. Rajala asked if the propane tanks located on the south side of the Legacy Development property belonged to them and Gorham informed him that they did. Rajala felt that it should be talked about around town and input from the citizens gathered before a decision was made. Gorham pointed out that he would not need City permission or a franchise agreement at this time to serve the two customers he is already committed to. Salmi clarified that lines under the river would be directionally bored and Gorham verified that. Salmi asked who was responsible for leaks, explosions, etc. and Gorham stated that they would be. Rajala asked if Gorham would do some advertising and public relations and come back to the Council in one month to review the franchise agreement again. Rajala stated that the Council knows he is here and will be getting started. Tendrup felt it was a good idea to table and get public opinion. She stated that she was sure Gorham had already done his end of the research or else he wouldn't be here. Asher asked if the Fire Department should be involved in the discussion.

Resolution 2007-12: Accepting Beach Donations: Motion to pass resolution 2007-13 accepting beach donations by Rajala, seconded by Koppelmann, MCU.

Public Works Superintendent Chuck Almhjeld: Almhjeld informed the Council of a number of areas in need of repairs. He reported that the sewer main near George Hauck's had been televised and it was found that the City should make the repairs. Almhjeld noted that Paul Gustafson's service line has a similar situation to Hauck's and recommended that the City fix both of the problems at the same time. Another fix needed is on the fire hydrant that is currently out of service. Almhjeld had obtained quotes from Casper Construction and MTO Excavating for the work. He stated that the Council needs to decide which company to use for these types of jobs so that he is not constantly being questioned on his decisions. Rajala stated that Casper Construction should be used due to their larger crews and equipment and their expertise. Almhjeld stated that he would call Casper Construction from now on for work that needed to be done. Motion by Lexvold, seconded by Koppelmann to authorize Almhjeld to have the repairs discussed completed, MCU.

Almhjeld reported that the ditch on South Rajala Mill Road needed to be dug out. He obtained a quote from Hastings Dirt Work for the job. Rajala did not feel that Hastings was qualified for the job and stated that the Public Works Department should do the work themselves.

Request from Bergquist: A request was received from Bergquist to use the hangar and picnic tables at the airport for a company picnic. Motion by Rajala, seconded by Salmi to allow the use, MCU.

OTHER BUSINESS:

Salmi stated that he talked to Bob Schwartz and he wants to come take a look at the land on the north end of the City. He also talked to Earl Snell who has sold one of his planes and his hangar is going to be available.

Mayor Tendrup adjourned the meeting at 7:34 p.m.

Angie Storlie

City Clerk/Treasurer