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

City of Bigfork

Regular Meeting July 26, 2005

Members Present: Mayor Amy Tendrup, Jean Lexvold, Bob Zimmer, Amy Pifher and Richard Salmi Absent: None Also Present: Julie Kennedy, Terry Maier – Team Lab, Fred Tanner, Bill Loosbrock, Gus David, Connie Maki, Mark Maki, Blessing Rahier, Dave Waters, Andrea Erdmann, Rob Bushing, Nita DelCastilt, Robin Custer, Robert Johnson, Julie Aakhus, Mike Bakke, Dave Schminkey, Patti Dawson and Ken Wood

Patty Dawson was present to address an issue with the Condor Apartments. The residents of the Condor recently received a letter from USDA Rural Development stating the apartment complex was developed by a loan from them. The owners of the apartment are now asking for permission to pay off that loan ahead of time and this could cause the rent to increase. USDA was asking for the opinion of the residents on this payoff request and how it could affect them. Residents have written letters informing USDA of their opinion on the matter. Dawson asked that the City send a letter to USDA in opposition of allowing the early repayment of the loan and possible rent increase. Zimmer felt that no action should be taken until the full intent and complications of the matter are known. He pointed out that USDA does not know for certain if the intentions of the owner are to change the structure of the operation once the loan is paid off. Salmi asked if the residents have talked to the owner of the apartment, Kent Oliver. It did not appear that they have done so because the letter of notification came from an employee of USDA Rural Development. Salmi volunteered to contact Oliver to see what his intentions are. Tendrup did not feel that the Council had any concrete data to take any action on. Zimmer wondered if the City should even be involved in the issue. Tendrup suggested that perhaps Tarry Edington of Itasca County Housing and Redevelopment Authority would have some recommendations for us. It was determined that Tendrup and Storlie would draft a letter to owner Kent Oliver asking what his intentions are if he is allowed to pay off the loan early.

At this time, Mayor Tendrup moved Terry Maier of Team Lab Chemical Company to the top of the agenda. Terry was present to address the use of enzymes for sludge reduction in the sewer ponds. Team Lab supplies bugs to municipalities to fix a multitude of problems. The sludge bugs are still relatively new to their company. Most cities have used bugs in the past to solve grease problems. Maier stated that it was impossible to guess how much of a reduction might be realized through the use of these enzymes because each City is different in their system and what is going into the ponds. Maier gave a simple explanation of how the enzymes work. The sludge in the ponds works as a food for the bugs, it gets less dense as they eat away at it and is subsequently easier to liquefy. Maier commended the City staff and Council members that have visited other cities to see how the enzymes had worked for them. He presented pictures of the ponds that have used their sludge bugs to show the reduction that they have realized. The City of Argyle, one of the facilities that Public Works Superintendent Mark Maki visited, has recently reported a very substantial reduction in their sludge. The City of Perham was gaining seven inches of sludge per year and after their initial shockings, they did not get that. They estimated a 30% reduction of sludge in their ponds. Maier stated that the use of enzymes for our City will be a very cost-saving option as opposed to having to dredge a large amount of sludge. Salmi stated that he is a firm believer in the use of these bugs and he has looked at another chemical company in comparison to Team Lab. This other company has stated that they can get 5 million per gram and Team Lab is stating 3 million per gram. Maier stated not to let the count fool you. It is also important to look at the different strains of bacteria that are associated with that bug. Team’s 3-million bug is associated with 14 different strains of bacteria. They do have a 5-million bug that they sell for mechanical use due to the fact that quicker results are desired in that industry. In a municipal sewer pond, you don’t usually want to spend the extra money to use the higher million bug. Maier noted that they add more nitrates to their product than their competitors do which adds more oxygen to the system. That is whey there may be cheaper bugs out there than theirs. Salmi asked about the most appropriate time of year to add bugs to the pond. Maier clarified that you shock the pond, which is the process of the initial introduction of the bugs into the pond, in the spring or the fall. After the initial shocking, bugs are continually added to the system to keep the process going. Another point for the public to be aware of is that this process will not get rid of odor problems at the pond. Sewer ponds always have odor in the spring of the year and there is nothing that the City can do to get rid of the odor of the ponds. He added that you might actually have worse odor problem during the spring after the initial shock because of the influx of bacteria that are working in the pond. Maier would like to use Bigfork as his example for other cities in the future so he will be working closely with the Public Works Department to collect before and after data from us. Salmi asked if you have to shock every year and Terry answered that that is a one time process (though the City of Perham did two initial shocks, one in the spring and one in the fall) and from then on it is a maintenance program to keep up on it. Maier stated that although the entities don’t openly endorse Team Lab, he has gotten a lot of business from customers that have been referred to him by Minnesota Rural Water, Minnesota Pollution Control Agency and the Minnesota Department of Health. Salmi asked if they analyze the pond before they start. Maier answered that Maki has already done this by using a sludge-judge to measure the depth of the sludge before we start. He explained that there is a more expensive electronic measuring method that could be used but it is not necessary. It’s better to take that money and put it into the actual program. Salmi asked about changing the type of bacteria that is used if needed. Maier answered that they would do that if it was found to be necessary. He restated that he intends to work closely with the City to ensure that these bugs work for us. He wants to see this work as much as the City does and this is why he has given us a price break on the shock treatment cost. Salmi asked if there was a catalyst that speeds up the process. Maier stated that there is and it’s included in the bugs. Maier complimented the Council on their good questions and commended Maki and the Council for doing their research and making themselves knowledgeable on the subject. He mentioned that there is an informational booklet available from him for anyone that is interested that explains what bugs and bacteria are and how this whole process works.

OLD BUSINESS:

Julie Kennedy – Engineering Updates: Julie Kennedy gave an update on the pond access road. There was a meeting earlier in the day between Bigfork Valley Hospital, Our Lady of the Snows Catholic Church and the City where it was determined that the entities are no longer on the fast track to get a new pond access road in. There will be another meeting in August to look at long term plans for this item. The hospital and church are willing to let the city continue accessing the ponds with the current road that crosses their properties.

Kennedy presented a memo dealing with inflow & infiltration (I&I) reduction. She reported that the hospital has agreed to give up to $85,000 to the City. $62,000 of this is intended to be used for I&I reduction projects and the remaining $23,000 is to be used for sludge reducing enzymes in the pond. Kennedy and Maki have identified the manhole and lift station repairs that are the top I&I priorities and that can be done for the $62,000 that is available. Kennedy is asking for a motion from the Council to call for bids on these projects. Salmi asked if there was any grant available to cover the $62,000 cost of the project. Kennedy reiterated that entire $62,000 is coming from the hospital. Motion to advertise for bids on the I&I projects by Zimmer, seconded by Lexvold, motion carried with Salmi abstaining stating the reason that he did not understand. Kennedy re-explained the whole issue of the needs of the City sewer system, the willingness of the hospital to assist financially, and the need to call for bids on the I&I projects at this time in order to move ahead. Tendrup called for a revote on the motion and it carried unanimously.

Kennedy moved on to an update on the short-term loan. She explained that we are moving ahead with our short-term loan and there is an additional $62,000 coming from it to be used for more sewer improvements. She and Maki will work on prioritizing those other needed improvements.

Sale of City House: As requested at the previous meeting, Storlie had collected information on advertising the sale of the City house on bids in many different Minnesota newspapers. It was noted that the second appraisal of the house had been revised and the new appraised amount is $64,000. Salmi stated that the sale price of the house could be dropped to $50,000 if there was no realtor fee and should drop even lower due to mold present. Storlie clarified that the appraisal was done with knowledge of the mold issues. Furthermore, the appraised value of the house has nothing to do with any realtor commission fees. Tendrup reviewed that the Council had previously passed a motion to sell the house on bids and asked the Council for a motion on where to advertise. Motion by Lexvold to advertise in the Minneapolis Star Tribune, Herald Review, International Falls Daily Journal, Western Itasca Review, and the Watts News, seconded by Pifher motion carried with Zimmer abstaining because he was hesitant to sell the house in its current condition.

City Properties on Cedar Street: Tendrup reviewed that the Council had placed a condition on the purchase of the properties requiring that a stick-built home be placed on them within one year of the purchase date. Tendrup asked if the Council would like to reconsider that requirement and sell the lots for whatever use the purchaser intends. She asked Council to consider this and bring any ideas back to the next meeting.

Liquor Store Ordinance and Fees: City Attorney Andy Shaw and Storlie have drafted a proposed liquor ordinance for the Council’s review. Tendrup felt that it should be forwarded to the Planning Commission for their review. Motion by Zimmer to do so, seconded by Lexvold, MCU.

Liquor Store Lease: Shaw has suggested that, due to the fact that much interest has been expressed by numerous parties in leasing the liquor store, a special meeting should be held with all interested parties. This meeting will allow everyone the opportunity to present their proposal to the City Council. Tendrup stated that the Council wants to take time to make the right decision due to the fact that they are not well-versed in these types of issues. The special meeting was set for Thursday August 4, 2005 at 7:00 p.m. and will be for the sole purpose of hearing all proposals for the lease or sale of the liquor store building. It was determined that the Council would make a final decision at their next regular meeting on Tuesday, August 9, 2005. Parties who have submitted proposals on August 4th will have the opportunity to make changes to their proposals between then and the August 9th meeting.

Tendrup moved on to the issues that need to be taken care of by the Council at the liquor store. There is a substantial number of loose bottles, business records, signage, etc. that needs to be taken care of. Schminkey volunteered to help if he could. Connie Maki suggested donating the pop and chips to someplace that could use it. Motion by Lexvold to donate the non-alcoholic drink and food items left in the liquor store to the area Youth Center, seconded by Pifher, MCU. Tendrup asked about signs and promotional items. Erdman suggested selling them on Ebay through a service located in Grand Rapids called WeBayIt. Dave Waters stated that he is set up to sell on Ebay and could do this for the City as well. Motion by Zimmer to have Storlie check with the League of Minnesota Cities and City Attorney Andy Shaw on the legality of the City selling items on Ebay and the possibility of a City employee doing this or of using a service, seconded by Lexvold, MCU. A motion was made by Lexvold and seconded by Pifher to have the Fire Department distribute any appropriate promotional items at the upcoming Effie Rodeo Parade, MCU. Maki will work on inventorying promotional items and moving them to City Hall. He reported that the pictures are off of the wall and will also be brought over to the City Hall. The lighted Picaroon Saloon sign has not been removed because it has to be taken apart in order to do so and it was determined that the new operators may wish to reuse the lighting components with a new sign face. The other signs that were removed are being stored in cold storage by the Public Works Department. Tendrup reviewed that, while we do not have the actual appraisal on the building yet, the appraised value of the it has been reported at $175,000. Bushing was concerned that without knowing what the liquor license fees and allowable hours of operation will be, it will be hard to come up with a proposal. He was also concerned about the Council’s decision to sell the signage. He stated that vendors do not have a lot of money anymore to provide signage to liquor establishments and it will be hard for a new person coming into the building to obtain signage. Furthermore, most vendors want their signs back if a facility is closed down. Storlie will call all the vendors to double-check that they have removed everything they want from the premises.

Videotaping of Council Meetings: Tendrup has had many recommendations that we begin videotaping meetings. This holds the public as well as the Council accountable and it is a better record of the meeting than an audio tape. Tendrup would like to budget this for 2006. Zimmer wanted to know if the City would tape the meetings in-house or hire someone to do so and could it be shown on our website. Tendrup stated that this is something to think about. Kennedy stated that another city she works with videotapes their own meetings and submits the tape to their local public access channel for television. Motion to have Storlie look into this and report back with the different options by Zimmer, second by Pifher, MCU.

Formation of Personnel Committee: This item was tabled at a previous meeting. It has been suggested that a committee be formed to handle all personnel issues including performance reviews, review and updates to job descriptions and the personnel policy, review job applications and conduct interviews, and handle complaints regarding City employees. The committee would not have any decision-making power and would serve as an advisory committee to the City Council. Discussion was held on who should be appointed to this committee. Zimmer felt that it should include the City Clerk, the Mayor, one other Council member and one Planning Commission member. A few audience members felt that a member of the local business community should be included as well. It was also suggested that a resident of the City should be involved. Zimmer stated that his fear with appointing a resident is that they don’t always have the whole story since they are not as involved. He noted that things that are said and acted upon at City Council meetings are often embellished and altered through “coffee-shop talk”. Schminkey stated that even Council members cannot be aware of everything that goes on and that it would be a good idea to get a fresh perspective from a resident of the City. Dave Waters stated that if the City Council forms this committee, there will be one less employee to worry about. He stated that the City Council does a bad enough job dealing with personnel issues and now they want to appoint a committee to do what is their job. A motion was made by Zimmer and seconded by Lexvold to create a four person committee to be made up of the City Clerk, the Mayor, one other Council member and one Planning Commission member. Pifher made an amendment to the motion to include a local business person and a public citizen and not to have a member of the Planning Commission involved. Lexvold seconded and the motion as amended passed unanimously. A motion was made by Lexvold and seconded by Pifher to amend the personnel policy to include this new committee and spell out their duties, MCU. The Council asks that any interested business person or resident of the City please contact the City Clerk’s office by August 9th to have your name considered for appointment to the committee. Schminkey volunteered his name to be considered. Ken Woods also agreed to have his name considered.

Aflac Insurance: A memo outlining more of the benefits of providing this supplemental insurance was received from Julie MacAdams who had previously presented information on Aflac Insurance Company to the Council. Connie Maki has talked with Storlie on insurance issues because she feels the City’s current health insurance plan is terrible. The City is in a tough position now because we are down to three benefit-eligible employees and do not qualify for most group plans that are offered. This supplemental insurance would be a good way to help provide more coverage for employees. Tendrup was in favor of providing more and better coverage for our employees but was worried about the cost to the City. David stated that the employees may be willing to kick in a portion of the cost for the additional insurance. Zimmer stated that he has had a good experience with Aflac. Tendrup would like to see the employees pay a percentage of the premium. Tendrup felt that we should see what other plans our current health insurance carrier provides and at what cost before we consider buying supplemental policies. A motion was made by Pifher and seconded by Lexvold to have Storlie check into the cost of obtaining a more favorable health insurance plan through our current carrier, MCU

NEW BUSINESS:

Ducks Unlimited Gambling Permit: Motion to approve a lawful gambling permit for the Ducks Unlimited Banquet to be held at the Bigfork Fire Hall on August 27, 2005 by Lexvold, seconded by Pifher, MCU.

Land Use Permits: Two land use permit applications were received. The first was from Mike Pifher for a replacement mobile home on his property. The second was from Wade Porter for a garage on his property. Motion by Zimmer and seconded by Lexvold to approve both permits, MCU.

Claims: Motion to approve claims for payment in the amount of $11,839.63 by Lexvold seconded by Zimmer, MCU.

OTHER BUSINESS:

Gus David had a complaint regarding a City employee. Tendrup noted that there is a formal complaint policy and David should get the appropriate forms from Storlie.

Kenny Woods would like to request a renewal 3.2 malt liquor license for his restaurant. Motion to renew the license by Pifher, second by Salmi, MCU.

Maki had a few items to discuss with the Council. Thein Well Company has completed their annual inspection of our wells and has made some repairs that were necessary. They notified Maki that the pump at one of the wells needs a new motor. The price quote from them for a new motor for the pump is $1175 with a $2500 installation/mobilization fee. This mobilization fee is $1000 lower than normal because they will already be in this area for another project. Salmi wanted to ask for money from the hospital to pay for this repair. Thein has done a test flow of well #4 and Maki will have the results of that soon. This will enable the City to determine what should be done with well #4 Maki has finally been able to get approval from the State to mount our new street signs to their stop sign posts. The Public Works Department will be working on installing the signs this week. Maki is ready to start using enzymes as discussed earlier with Maier from Team Lab. He will be putting in extra hours to make sure that we get a good study on our work with the enzymes. Next spring he will ask for a price cut on the next order of enzymes in return for providing Team Lab with data on our experience. Maki will be approaching citizens about accessing their property to clear out the ditch rows in town. He will be using the sentence-to-serve crew in September to help with this as well as for brushing at the airport, beach, parks and cemetery. H asked that the Council let him know of any other areas that need to be done. This work will help get rid of wetness and mosquitoes.

There being no other 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 the city clerk/treasurer.

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.