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

City of Bigfork

Regular Meeting June 13, 2006

Members Present: Amy Tendrup, Jean Lexvold, Amy Pifher, Lonnie Kacon and Richard Salmi

Absent: None

Also Present: City Attorney Andrew Shaw, Gene Rajala, Tarry Edington, Public Works Superintendent Mark Maki, City Engineer Julie Kennedy, Dave Waters, Robin Custer, Julie Aakhus, Robert Johnson, Police Chief Jon Babcock, Connie Maki, Dave Schminkey, Stormi Dahlquist and Caleb Schminkey

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

Public Forum: Mayor Tendrup asked that any members of the audience wishing to address the Council do so at this time. Gene Rajala asked the Council why they borrowed the money to buy the skid steer rather than using the money from the sale of the liquor store to pay for it. Tendrup responded that this idea had been discussed, however no firm decision had been made. Rajala felt that if the money were in the bank, it should be used rather than financing. Tendrup closed the public forum.

Tendrup moved Resolution 2006-14 to immediately following the consent agenda and Julie Kennedy to immediately after the Public Works Department Report. Motion to approve the agenda as amended by Lexvold, seconded by Pifher, motion carried unanimously (MCU).

Consent Agenda Salmi asked for clarification on a few of the claims. He further requested that Item #2 be removed for further discussion.

Motion by Lexvold seconded by Pifher to approve the consent agenda as follows:

#1- approval of the minutes of the May 9th regular and May 18th special City Council meetings

#2- removed for discussion

#3- approval of the City Clerk’s Office Report for May 2006

#4- approval of the Budget Report for May 2006

#5- confirmation of the hire of Michael Love as Casual Maintenance Laborer based on satisfactory results on drug and alcohol testing and background check

#6- acknowledgement that Tranette Stevens, temporary fill-in for City Clerk, is a member of the Bigfork Ambulance Service Association and to allow her to respond to emergency calls during regular work hours without penalty, as per the City of Bigfork Personnel Policy

#7- approval of the claims for payment in the amount of $115,005.20 including the May 15th, and 31st payrolls

MCU. (copies of documentation relating to any consent agenda item are available at the City Clerk’s office)

Resolution 2006-14: This resolution authorizes the Mayor and Clerk to sign the Development Agreement which has been drafted by the City’s Tax Increment Financing (TIF) advisor, Fryberger, Buchanan, Smith and Frederick, P.A. Andrew Pratt of the Fryberger firm was present via conference call to answer any questions the Council had. Tarry Edington addressed the Council and noted that the Development Agreement was currently in front of the Council for review. Pratt stated that the agreement was fairly standard and simply puts the TIF plan that has already been approved into action. It provides for the developer to be reimbursed through the TIF for certain project costs. Salmi asked if the City of Bigfork would handle the money from the TIF for this project/agreement. Pratt answered that the City would be the disbursing entity. Once the TIF note comes into play and the project is completed, the City is the entity that passes on the tax increment to the developer. Edington clarified that the taxes are paid by the project to the County Treasurer as normal, the County then passes the increment on to the City who, by agreement, pays a portion of that money to the development partnership. The City may keep up to ten percent of the TIF proceeds to cover administrative costs. The development partnership has a loan with the First State Bank of Bigfork and has assigned TIF revenue to the repayment of that loan. Because of this, the City will likely make the payment due to the developer directly to the bank. Salmi asked what happens if there is an overrun and questioned if there is a contingency fund for project costs. Pratt answered that the development agreement spells out that any overruns are not the City’s responsibility. Edington verified this and noted that the only money from the TIF that the developer is eligible for are funds that they prove have been legally disbursed according to the agreement. Salmi questioned if there is a project manager that represents the City to ensure the project is completed correctly and voiced concerns about the types of footings being used, etc. Edington stated that the agreement appoints the City Clerk as the administrator of the development agreement and the Clerk would have the right to ask the developer for any of this information, however he hesitated to classify the Clerk as a “project manager” on behalf of the City. Pratt agreed and noted Article A of the Development Agreement which discusses violations by the developer that could void the agreement. Salmi stated that he was referring to building code-type management. Edington stated that his understanding was that the City of Bigfork has not adopted the building code and therefore is not authorized to be making inspections of this type. He added, however, that the development partnership is bound by the State Building Code due to the type of project. City Engineer Julie Kennedy noted that the City would have representation for the development’s connection to utilities. Salmi asked again if there would be a project manager. Edington noted that the developer employs an architect who has oversight responsibilities to make sure that the contractor is completing the work according to the architect’s design and specifications which were drawn up according to the building code. In addition, the developer is employing an additional inspector to periodically double-check on the architect and the contractor. This is all at the expense and responsibility of the developer and not on behalf of the City. Motion to approved Resolution 2006-14 by Pifher, seconded by Kacon, MCU.

Mayor Tendrup called for a five minute recess and called the meeting back to order at 6:28 p.m.

Public Works Department Report: Public Works Superintendent Mark Maki began his report by thanking Jean Lexvold and Connie Maki for painting the gazebo and placard frame. Maki reported that winter equipment had been moved to cold storage buildings. Seasonal water service turn-ons were performed. Maintenance to machines was performed. Wastewater samples from the ponds and airport were delivered. There will be a new sample delivery schedule beginning soon and we will need to adjust our sampling schedule to meet this. The Minnesota Pollution Control Agency (MPCA) does not allow volunteers to deliver samples for the City due to the liability if the sample does not reach their office/lab on time. Pifher asked if a Council member would be able to deliver samples and Maki has this being looked into. Tendrup asked if we would still be able to collaborate with Scenic State Park on sample delivery and Maki answered that we would when possible, however the Park only discharges once every two years. Floats and basket at the main lift station were cleaned. Maki was called in to the main lift station over the weekend due to plugged pumps. Honey Bear and Scooter’s Septic Service were used to assist with the problem. Maki is working on determining where the offending items came from. Salmi asked how long the station was down. Maki said it was down for about six to eight hours. Salmi asked if there is a telephone connected to it and Maki answered that it was, however it is either not working correctly or is connected to an invalid number. Salmi asked what would happen if this type of situation occurred while Maki was out of town and Maki answered that our part-time Public Works employee would be responsible. Maki has also notified people in the area to notify him if they see that the alarm light is flashing. Maki will contact the necessary entity to update the phone number that should be contacted when the alarm goes off. Salmi asked if there was another licensed operator to cover if Maki was unavailable. Maki stated that the part time Public Works employee is able to respond and also that our representative from Minnesota Rural Water (MNRW) would assist in an emergency situation. Salmi asked if we have insurance coverage if the sewer backs up into homes. Storlie answered that we do not. Maki stated that most cities have adopted ordinances stating that backups are the homeowner’s responsibility.

Maki continued with his reporting stating that two discharges have been completed with the third starting today. Summer enzymes will then be added. Looking at the #2 pond, it appears that the enzymes are doing something. Once pond #1 is down in level, we will be able to measure exactly how much the enzymes are doing. MNRW and Team Lab will be here at the end of June to do sludge-judging. Team Lab is taking our information to be used for their research. Salmi asked if there are any other enzymes we could add. Maki stated that the only other recommended enzymes are added to the lift stations for grease control and we already have these on hand. Pond edges were sprayed for weeds and will be burned off. Short-Elliott-Hendrickson’s new wastewater representative came up for a visit. The beach floats and ropes were installed. Fire hydrants were flushed. There are odor problems in the Ottum Ave area which have been dealt with by further flushing. Salmi asked if back-flushing in the treatment plant would help and Maki noted that they are back-flushing on a regular basis, however this does not help with odor problems. Locates for area construction projects were completed. Mowing was completed in various areas of the City. Salmi noted that there is a lot of grass to be cut at the airport. Maki answered that the Bobcat would be used to take care of this and added that the airport is top priority now that the celebration is over. Salmi had concerns about cracks in the runway and the airport buildings needing painting. Maki and Kennedy are aware of these issues and are addressing them. Kacon asked about using volunteers and Maki noted that we will be using one individual who needs to complete community service hours. Sentence-to-Serve crews are busy and will not be able to be up this year. All public works employees were on duty for the annual celebration. Salmi stated that Schwartz would deliver Class V for $13.50 per yard for the cemetery. Maki has talked with Jerry Pula and Kennedy on this to see what is available for what cost. There is a possibility of us getting a contractual agreement with the County to help save on these costs. Salmi stated that there is a bad bruised spot on East Ottum Avenue. Maki has been talking to the County about this as well. Salmi asked about dust control on the dirt roads. Maki stated that he has talked to the County about this and the cost is around $1,500 per mile for the application. Pifher asked how long this lasts. Kennedy stated that you can contract with the County for dust control application but it can only be done on new Class V. It reduces the need for grading to once per month and the application is needed annually. Contracts need to be in place by the first of June so this is something we could look at for next year. Maki was contacted about crack sealing for the fire department parking lot and quoted a cost of $2,850. He contacted Fire Chief Ron Root about this who stated it was not in the budget this year so the Department will do the sealing themselves this year and budget for this for next year. Salmi talked to a tar contractor who said sealer was a waste of money. Maki noted that the County does not seal any more, but rather repairs cracks when they occur.

Pifher asked about contacting the City of Big Falls about covering for Maki during his vacations or when he needs to be out of town. Pifher also noted that Council did not direct anybody to get quotes on gravel for the cemetery and stated that she would like to see local business on this. Motion by Pifher to contact Big Falls and other area cities about setting up a coverage agreement, seconded by Tendrup. Tendrup noted that we are only required to have a licensed operator in town four hours per week. Salmi stated that he would like to see Dave Waters used for coverage when Maki is out of town because Waters is familiar with the system. Tendrup felt it was better to have an agreement with another city as it would help them out as well and would not cost anything. Tendrup called for a vote on Pifher’s motion and motion carried with Salmi opposing. Motion by Salmi to hire Dave Waters to fill in during times when Maki is out of town. Motion died for lack of a second.

UNFINISHED BUSINESS:

Julie Kennedy – Engineering Updates: Substantial completion date for the Golf Course Lane project is June 30th. Governor Pawlenty has signed the bill providing funding for failing wastewater systems, including our airport mound system. Kennedy provided a memo to the Council showing that the mound project is now 100% funded through a combination of this money from the State legislature and our Project Cooperation Agreement with the US Army Corps of Engineers. Kennedy will be working with Public Facilities Authority to obtain our funding through the legislature. She has asked for a special meeting on June 28th at noon with the City, Bergquist and the Army Corps to discuss our next steps for the mound system. Kennedy stated that a total of twelve soil borings were done and no evidence of sand was found. Salmi asked if the pipe between Bergquist and the mound was leaking and Kennedy answered that it is leaking substantially and she suspects that it will need to be completely replaced. Salmi asked what the plans are for the fixing the system and Kennedy noted that this will be addressed at the special meeting. The biggest issue now is that we will not likely be able to salvage any of the material during the fix as was originally planned and this will drive the cost up. In addition, the material that is there is now contaminated and will need to be appropriately disposed of. A new mound system will be put in. Kennedy noted that the mound currently in place was designed properly. A mound system that is properly maintained should last at least as long as a pond or any other type of system. Salmi asked if Bergquist could use another system if the mound doesn’t work, such as an aerobic system. Kennedy noted that the current system does have aerobics at this time and that is actually part of the problem due to the fact that it kills off the BOD that are supposed to keep the system from freezing. Salmi asked if there would be a warranty and Kennedy noted that a one-year guarantee is standard. Increasing that will drive the costs up. Kennedy noted that the safeguard should be an owner’s representative being present during construction which apparently did not happen when the original system was put in.

Kennedy moved on to her next item. In December 2005, the City submitted our Capital Improvement Plan (CIP) update for the airport. Crack repair and sealing was listed for 2006. An airport layout plan update is normally required prior to this, however MnDOT Aeronautics will allow us to move ahead with the repair and sealing due to the high cost of the plan update and the immediate need for the repair work. Previously, it was stated that this would be paid for 80% by MnDOT and 20% by the City. SEH will put together the requirements and request quotes to be reviewed at the next Council meeting. Salmi asked how much of this MnDOT pays for and Kennedy stated that it was previously an 80/20 split, however this would be determined for sure upon receipt of the quotes. Kennedy clarified that this would be an actual repair of cracks, not just a sealing. Motion to have Kennedy request quotes on the work by Kacon, seconded by Lexvold, MCU.

Kennedy’s final item was the Pifher/Tendrup water line. The Council had asked Kennedy to prepare the cost of two different alternative fixes for the situation. $2,900 is the cost for placing a new curb stop on the Pifher line. $10,675 is the cost for a new main run down Third Avenue to supply a new service line for Tendrups, as well as to serve the other properties in that area. Kennedy had been made aware that Wendts have requested service. This is one of the properties that was assessed for the project back in 1997 but did not actually receive service. Kennedy requested a motion to go ahead with research as to who has been assessed for service and what will need to be done to provide service to them. Salmi felt that we needed to wait for grant money to do this project. Shaw noted that the people who were assessed were entitled to the service. Shaw and Kennedy will need to look into this situation to determine what exactly took place and what will need to be done at this point. Kennedy recommended holding off on a repair to the Pifher/Tendrup situation while a proper solution and possible funding is determined for this situation. Shaw will begin research and prepare a memo to the Council.

Cedar Street Properties: Tendrup had asked that this be put back on the agenda as she feels that enough time has passed with these lots not selling. Tendrup felt that the asking price should be reconsidered. Salmi felt that if the lots were filled, they would be more likely to sell. Salmi suggested contacting our previous bidders with a lower cost. Motion to lower the asking price each parcel by $2,000, contact any previous bidders, and advertise in the WATTS News for two months by Pifher, seconded by Kacon, MCU. Salmi asked about assessments on the parcels and Tendrup explained that the parcels do carry assessments for water and sewer service and the purchaser will be responsible for the assessments.

NEW BUSINESS:

Police Report: This item was removed from the consent agenda for further discussion. Salmi requested a copy of the police report on the January 17th fire at Fiegen’s from Babcock. Motion to approve the police report by Pifher, seconded by Lexvold, MCU.

Babcock stated that he is not clear on what the City’s policy on beach use. Tendrup noted that it is not closed, however there will be no lifeguard this year and asked if Babcock felt a policy was needed. Babcock wanted clarification as to whether or not people should be allowed there, maintenance issues, enforcement problems, etc. Tendrup clarified that the property is still open from sunrise to sunset for use. The Public Works Department and Babcock are to monitor the property as much as possible. Tendrup reviewed that the citizens want the beach to remain open. Tendrup also reviewed that we are following our insurance company’s recommendations. Babcock asked about the second gate that was to be put in. Tendrup felt that the Planning Commission should review this with the Public Works Department.

Babcock asked about the progress on the ATV ordinance and Storlie stated that the Planning & Zoning Commission would do a final review of the proposed ordinance at their July 5th meeting and forward it to the City Council for review and approval at their July 11th meeting.

Renewal of Cooperative Purchasing Venture Membership: The Public Works Department did not feel the need to renew the membership at this time. Council was in agreement.

Resolution 2006-12: Accepting Airport Donations: Motion to approve resolution by Salmi, seconded by Pifher, MCU.

Resolution 2006-13: Accepting BWC Donations: Motion to approve resolution by Lexvold, seconded by Pifher, MCU.

Resolution 2006-15: Adopting Itasca County All-Hazard Mitigation Plan: This item was tabled and put on the agenda for the June 28th special meeting to allow the Council more time to review the plan.

Thank You from BWC Planning Committee: The Planning Committee for the annual Bigfork Wilderness Celebration submitted a thank you to the City, particularly to Maki and the Public Works Department for all of their assistance with this year’s event. Tendrup added a thank you to the committee for their work to make the event possible.

OTHER BUSINESS:

A special meeting to discuss the airport mound system and the Itasca County All-Hazard Mitigation Plan will take place on Wednesday, June 28, 2006 at noon.

Mayor Tendrup adjourned the meeting at 7:46 p.m.

Angie Storlie

City Clerk