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

City of Bigfork

Regular Meeting July 19th, 2004

Members Present: Mayor Lonnie Kacon, Steve Grover, Jean Lexvold, Bob Zimmer and Amy Tendrup Absent: None Also Present: Tarry Edington, Gary W. Schwersinski, Gene Collins, Mark & Connie Maki, Joyce Holsman, Tim & Anne Collins and Julie Kennedy

Mayor Kacon called the meeting to order at 7:00 p.m. and announced the results of the June 22nd, 2004 closed meeting. At the meeting, a performance review of Public Works Superintendent Mark Maki was conducted. Maki received 45 out of 45 points on his review and was granted a 4% pay increase. Maki was also removed from probationary status and granted full health and life insurance benefits. Kacon explained that during discussions with Maki after the review, it was recalled that Maki was hired under the understanding that the possible pay increase would be 8% after the six-month probationary period. Neither Kacon nor City Clerk Angie Storlie remembered this agreement at the time of the review which is why the raise was only 4%. A motion was made by Zimmer and seconded by Grover to approve an 8% pay increase to Maki retroactive to July 1, 2004, Motion Carried Unanimously (MCU).

Consent Agenda Motion by Lexvold, seconded by Tendrup to approve the consent agenda as follows: #1- approval of the minutes of the June 22nd regular, the June 29th special, and the July 6th special meetings #2- approval of the police report for June 2004, report is attached to the minutes as Appendix A #3- approval of the Public Works Department Report for June 19 through July 19, 2004, report is attached to the minutes as Appendix B #4- approval of the library report for June 2004 of 181 books checked out and 44 readers using the library #5- approval of the June 2004 budget report #6- approval of the application by Itasca County Housing and Redevelopment Authority for a special use permit to allow multi-family housing in a residential zone. #7- approval of the land use application by Itasca County Housing and Redevelopment Authority for two 6-residence housing units to be located on Golf Course Road and to waive the $5.00 application fee as a contribution to the project #8- approval of Resolution 7-19-2004: Accepting BWC Donations, resolution is attached to the minutes as Appendix C #9- removed for additions (MCU).

Storlie removed Item #9 from the consent agenda in order to add three more claims to the list of those to be approved. The three claims added were as follows: $57.00 to Mesabi Range Eveleth Campus for firefighting textbooks, $1140.00 to Northern health & Fitness Plus for firemen physical examinations, and $150.00 to Shannon Gilbert for fill at the beach. Motion by Zimmer seconded by Grover to approve the claims for payment in the amount of $66,652.58, including the July 15th payroll and with the addition of the three claims listed, MCU.

OLD BUSINESS:

Tarry Edington: Tarry Edington of the Itasca County Housing and Redevelopment Authority was present. He first thanked the Council for their action on approving the special use and land use permits and waiving the associated fees. Tonight’s request from ICHRA was for a Tax Increment Financing (TIF) district. Edington had presented information on this item at the June 22nd meeting and was now back with a formal request. ICHRA is requesting that the City of Bigfork commit to providing TIF to assist in the development of WilderNest to the extent of $99,000 in a lump sum. The TIF district will be in effect for 17 years. Previously, Edington had talked about a 15 year term. The additional 2 years will cover the first few years in which there will be no tax income to cover the payments. Northland Securities has prepared a breakdown of the numbers. Zimmer reiterated that the City will continue to get the taxes that they are currently receiving on the undeveloped land. Edington stated that was true and that the additional tax revenue raised by the improvements on the land will come back to the City to cover the bond payments. Zimmer clarified that committing to a TIF district will cost the City nothing. Edington agreed and pointed out that the City actually gets a small administrative fee to pay for the administrative costs of managing the TIF district. A motion was made by Grover and seconded by Tendrup to commit to providing a TIF district in the amount of $99,000 for a period of 17 years as requested, MCU.

Edington updated the Council on other funding options for WilderNest. The application to the Minnesota Housing Finance Agency, which would provide the bulk of the funding for the project, will be sent in later this week and ICHRA will know the results of that application in October of 2004.

Julie Kennedy – Engineering Updates: Kennedy’s first update was on the Cedar Street water and sewer projects. Both projects are at the point of substantial completion. Storlie will be in contact with the bank this week to finalize the funding and Kennedy will come to the next meeting with final pay requests.

The inflow and infiltration on Spruce Street has been fixed. Maki and Kennedy worked with Casper Construction to cap the service line and put in a new curb stop. Water usage has decreased between 8,000 and 10,000 gallons per day. This is a major cost savings both with water treatment and usage, as well as with our pond capacity issues. Kennedy added that the completion of this project will help us with future funding applications.

The wetland delineation on the Legacy Development property has been completed. Kennedy is meeting with them later this week. If Legacy decides to go forward with the project, they will be coming back with a new preliminary plat for approval by the Planning Commission and City Council. Zimmer questioned if the project would still start this year. Kennedy stated that it might be possible to do some of the utilities and clearing and grading work.

Kennedy’s final item was a discussion on water and sewer on Division Avenue. She explained that the City has received two requests for service in that area. The two parties making the requests were assessed in 1997 for water and sewer, however service lines were not brought all the way to their property lines. All landowners in the area were contacted in order to get a history of the 1997 project and gather everyone’s input before moving ahead with a project. Kennedy presented a drawing showing where the current mains run and where the stub comes out into Third Street. The City would need to run another main down Third Street in order to serve the two properties in question. Gene Collins stated that the stub is actually on his property and not in the Third Street right of way, and that the he would not allow the City to dig up his property to access it. Tim Collins added that the road should be made drivable before any other projects take place and he will not allow the road to be dug up in front of his home. Kennedy suggested that the City televise the lines in the area and conduct a survey to determine the location of the stub. If it is found to be on Gene Collins’ property, the City can simply install a new stub in the Third Street right of way. Zimmer made a statement that both Julie Kennedy and Mark Maki have done a tremendous job for the City so far. He added that the City would like to work with all property owners in the area to get the problems fixed and move forward from here, and that this project could be completed without having to dig on any private property. Anne Collins stated that she has been watching for the past few months and she agreed that Kennedy has done a good job and the these types of problems will end with the new engineer. Kennedy wrapped up by stating that the Council will need to think about how this project will be paid for. The property owners have already been assessed so this will not be a typical assessed project. Kennedy also offered to look into repair of the street. A motion was made by Grover and seconded by Lexvold to have the lines in the area televised, surveys completed, and to have Kennedy look into options for road maintenance, MCU.

City Clerk Computer Quote: Storlie received two quotes from Out of the Blue for a new computer tower for the Clerk’s office. She asked the Council if they would allow her to obtain quotes for a laptop computer. Zimmer questioned the reason for a laptop over a new desktop. Storlie felt that it would be beneficial during her upcoming maternity leave to be able to use the laptop to do some work from home. Kacon stated that Joyce Holsman has offered to donate her old computer to the public works department. Zimmer questioned if the City was allowed to accept donations from employees. He asked that Storlie look into this and that she obtain quotes for a laptop.

Land Appraisals: Storlie reviewed the land appraisals. The 50-foot lot for Peoples Telephone was appraised at $7500. Parcel B on Cedar Street, which is 2.4 acres appraised for $25,000. Parcel C on Cedar Street, which is 2.65 acres appraised for $32,000. The City house on East Ottum Ave appraised for $65,000. Peoples Telephone has submitted an offer of $7500 for the lot they wish to purchase. A motion was made by Zimmer and seconded by Grover to accept the offer of Peoples Telephone of $7500, MCU. A motion was made by Zimmer and seconded by Grover to have City Attorney Andy Shaw draw up a purchase agreement for this transaction, MCU. A motion was made by Zimmer and seconded by Tendrup to list the other two parcels on Cedar Street with a local realtor who can list on the MLS system, with the stipulation that the buyer obtain a land use permit for a year-round residence within one year and build the home within one year of the issuance of the permit, MCU. The sale of the City house was discussed. The Council asked the Clerk to look into the procedure for direct negotiation sales and to see if the City is allowed to sell for less than the appraised value. Once we know the procedure, Zimmer will talk with the current renter about purchasing the house. There was also a discussion about raising the rent on the house. The Council directed the Clerk to have Shaw draw up a lease agreement to have ready for action at the next meeting.

NEW BUSINESS:

Land Use Permit Application: The City received a land use application permit from Greg Griffith. He would like to build a second story on his home. Motion by Tendrup and seconded by Grover to approve the permit, MCU.

OTHER BUSINESS:

Zimmer questioned if anything further had been heard from Schwartz Excavating about their interest in participating in the JOBZ program. Kacon will check in with them.

Zimmer asked Maki if the City will be needing new sewer ponds. Maki stated that the ponds will need to be dredged, but that new or expanded ponds shouldn’t be needed. Dredging, in conjunction with the fixes we are making regarding inflow and infiltration, will be sufficient to fix our capacity problems.

Zimmer made an announcement that the lifeguard will not be working over rodeo weekend. The Council asked that the lifeguard be asked to start keeping a daily log of beach use so that we have an idea of how many people are using the facility. Lexvold stated that there is some graffiti on the changing room walls. Maki will take care of this.

The Council felt that we should be able to go back to having one meeting per month at this time. The next Council meeting will be on Tuesday, August 10, 2004

There being no further business, Mayor Kacon adjourned the meeting at 8:41 p.m. and announced that a closed session would be held immediately for a performance review of the City Clerk.

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 June 2004

02 13:10 theft /public yard ,cemetery road 07 09:00 theft /business yard, rajala mill 11 02:09 loud party/noise disturbance, main street 11 02:47 suspicious vehicle, alley 13 00:33 assist itasca county s.o. terroristic threats 17 08:26 assist bigfork hospital 25 13:01 run away juvenile male, transport to i.j.c.

Appendix B

Public Works Department Report June 19 – July 19, 2004

§ Monthly meter readings, residential & commercial § Transfer wastewater pond 1 to pond 2 § Construction project Cedar and Division § Locates of service lines, met with Casper Construction on Tendrup area, service locations for Hospital daycare, located force main to ponds § Water and sewer inspection on Cedar & Division § Locate North side of Hospital for gas line installation § Rajala Mill lift station repair twice, hot weather – 3 hours each time § Hauled garbage from City § Service mowers – repaired SKAG (Dave welded frame) § Green truck alternator bad (warranty work) § Called in for water service shutdown due to main valve leak inside bldg. § Service at airport for volunteer mowing, hydraulics and drive oil low § Mowing ad weed eating of cemetery, parks, monument, lift stations and beach § Dave out from 6-21 to 7-6 § Repairs at water treatment plant § Potassium pump, sodium hydroxide pump § Order & received chemicals, Hawkins Water Treatment § Met with League of MN Cities rep about safety issues § Tour cemetery with Bob Z. and Jerry about headstones and mowing § Relayed information to Dave Waters about mowing process at cemetery § Assist Casper with parts for 2 service line repairs on Cedar & Division § Repair Spruce Street water and sewer service § Check water and sewer system after power outage § 7/13, Mark out, flex time (8 hours) § Changed c/2 at pumphouse § Sampling of airport mound and quarterly sample for ponds § Water sample for MN Dept. of Health § Install 1 water meter § Repair 1 water meter

Appendix C

RESOLUTION 7-19-2004 (1)

A RESOLUTION EXPRESSING ACCEPTANCE OF AND APPRECIATION FOR THE GIFT OF THE FIRST STATE BANK OF BIGFORK IN SUPPORT OF THE ANNUAL BIGFORK WILDERNESS CELEBRATION ACTIVITIES

WHEREAS, the First State Bank of Bigfork has presented to the City a donation of three hundred dollars ($300) and has designated that this donation be used for the annual Bigfork Wilderness Celebration; and

WHEREAS, the City Council is appreciative of the donation and commends the First State Bank of Bigfork for their civic efforts,

NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Bigfork, Minnesota; 1. that the donation is accepted and acknowledged with gratitude. 2. that the donation will be appropriated to the Bigfork Wilderness Celebration activities.

Passed this 19th day of July, 2004