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

City of Bigfork

Regular Meeting and Public Hearing June 8th, 2004

Except for Motions made by the Council this is not a verbatim record of every statement made during the Council meeting. Discussions have been paraphrased to give general direction and understanding.

Members Present: Mayor Lonnie Kacon, Bob Zimmer, Amy Tendrup and Jean Lexvold Absent: Steve Grover Also Present: Mark Maki, Gene Madsen, Joyce Holsman, Rodney & Bonnie Lovdahl, Gary W. Schwersinski, Connie Maki, Ron Bailey, Marilyn David, Dick Salmi, Police Chief Jon Babcock, Julie Kennedy, Tarry Edington and Mike Bakke

Mayor Kacon called the public hearing on the JOBZ business subsidy policy to order at 7:00 p.m.. The City must pass a JOBZ business subsidy policy before any business can be allowed to move into a JOBZ zone and participate in the program. The City has already passed this policy and now must hold a public hearing to ask for input from the community. Dick Salmi asked where the JOBZ zones are located. Kacon explained that there are some acres on the Rajala Mill property and the rest are located on the Peloquin property, however these acres can be moved to other locations if it better suits the potential business. There being no further public comment, the public hearing was closed at 7:08 p.m.

Mayor Kacon called the regular meeting to order at 7:08 p.m.

Consent Agenda Motion by Tendrup, seconded by Lexvold to approve the consent agenda as follows: #1- approval of the minutes of the May 11th regular and the June 3rd special meetings #2- approval of the police report for May 2004, report is attached to the minutes as Appendix A #3- approval of the library report of 139 books checked out and 32 readers using the library #4- approval of the May 2004 budget report, this report is available from the City Clerk #5- approval of the claims for payment in the amount of $69,138.67, including the May 31st payroll Motion Carried Unanimously (MCU)

Jon Babcock: Police Chief Jon Babcock addressed the Council regarding hiring a part-time officer to help out on his days off. He explained that this was discussed at the last meeting and he feels that everyone understands and agrees that a part-timer is necessary. Because of the redistricting in the Itasca County Sheriff’s Department, there is no resident deputy in Bigfork. This means that when Babcock is not on duty, a County deputy would have to cover and they may be far away at the time they are needed. Babcock stated that the deputies get upset when they have to cover for him. Kacon stated that he has talked to Itasca County Sheriff Pat Medure and he acknowledged that they are obligated to cover the area when Babcock is off duty. Kacon’s concern was how to pay for the additional employee. Babcock stated that he is asking for $420 a month for the rest of this budget year. Babcock stated that he has talked to Storlie about the budget and he asked her to comment on this. Storlie felt the additional costs for the last six months of this year could be absorbed into the current police budget. Zimmer was concerned about how to pay for it after the first six months. Kacon felt that the Police Commission should take time to look into this further and do a little more research. Babcock did not feel that this would accomplish anything since we already know there is a need for it. Kacon felt that the issue needed more thought before any action was taken and it was too soon to make a decision at this time. He also would like to talk more with Medure before taking action. Rodney Lovdahl felt that talking to Medure and bringing up the issue of road construction and how that affects response times could help. A motion was made by Zimmer and seconded by Lexvold to have the Police Commission review this issue and come back to the June 22nd regular Council meeting with information and suggestions, MCU.

Gene Madsen: Madsen informed the Council that he has finished the lumberjack statue in front of City Hall. Madsen commented that at the last meeting, Orbin Holt talked about selling the liquor store. Madsen clarified that he is one hundred percent against selling it because he thinks that it could make money for the City. He asked about the public hearing regarding the liquor store that will be held in October. He felt that because of the way many people around town feel about this issue, something should be done sooner and that a public hearing could get very unpleasant. Zimmer explained that the Council is required by law to have the public hearing and we chose October to give ourselves a chance to get things turned around and improve upon last year before having the hearing. Madsen stated that he understands that Steve Grover has three years of experience in bar management. He felt that the Council should use some of his expertise on the Liquor Store Commission. Zimmer stated that he would gladly give up his seat on the commission to Grover if he were interested in the position. Madsen finished by saying that he does not like to come to the Council meeting and cut people down, however he feels strongly that something must be done about this issue soon. Kacon had a few points of clarification. He reviewed the profit and loss for the last five years as reported on the State Auditor’s website, which shows that the Picaroon lost money in two out of the last five years. These numbers do not take transfers into consideration. Madsen agreed that it is hard to sort out the numbers and make sense of the audit reports. Kacon also pointed out that the operating expenses have not increased as Madsen had previously stated. Madsen clarified that he was only referring to wages and other costs of labor. He has found that labor costs at other bars runs about 20% of their total expenses and the Picaroon’s runs closer to 70% or 80%. Kacon stated he would like to know how Madsen came up with the 20% and requested that he come and talk to him privately about this. Salmi added that a recent article in the newspaper showed the Picaroon at the bottom of the list for municipal liquor store losses. Kacon thanked Madsen for his comments as well as for his work on the lumberjack statue.

OLD BUSINESS:

Julie Kennedy – Engineering Updates: Kennedy’s first update was on the Fine Arts Center. She has received copies of revised plans from the engineers of the project showing the new location of the waterline. Maki stated that they are scheduled to start digging this week.

Kennedy’s next item was Spruce Street. Maki has been reviewing the sewer tapes that were done in 2000 and they show a sewer service on a vacant lot that is dumping water constantly into the sewer system. This is contributing greatly to our inflow and infiltration problem. Kennedy recommends taking care of this problem when we have a contractor up for other projects. Casper Construction has estimated that it would cost approximately $3500 to fix if they do it while they are up here for another project. This would involve plugging the water and sanitary service. She recommends leaving the area as Class V rather than patching the bituminous due to the fact that the water may come up somewhere else once the lines are plugged.

The next item was the Cedar Street water project. At the last Council meeting, the Council had ordered a feasibility report on providing water service to Cedar Street. Kennedy passed out the feasibility report and reviewed it. She started with an explanation of the cost-effectiveness of the project. Typically you look at water and sewer extension projects together. It is assumed that the City would received better prices if the two projects were bid together, however, Kennedy does not feel that it would be beneficial to hold off on the sewer project just to bid it along with the water project. She explained that this project would involve running an 8” watermain from the intersection of Division Avenue and Cedar Street, on the north side of Cedar Street, west about 600’. This new line would tie into an existing 8” line on Division Avenue. The service lines to properties on the south side of Cedar would be directionally bored under the road. The benefiting properties would be the same four parcels as the sewer project, which is LaTrace, Gustafson, and the two city lots. Kennedy does not recommend providing a service to Lovdahl’s property at this time since they don’t have any immediate plans for development and it is fairly easy to tap into the main at a later date should they decided to develop the property. Kacon asked if Lovdahl’s had any input. Rodney Lovdahl stated that they don’t have any immediate plans for development. They want to go along with the City’s project but want more details. Kennedy explained that the City does not want to force development on them, but does want to accommodate any plans that they do have. Kennedy reviewed the scheduling of the project. If the Council decides to move forward with the project, they would need to pass a resolution accepting the feasibility report and calling a public hearing. This project is roughly the same cost of the sewer project, approximately $35,000. This project also falls under the special assessment policy where the benefiting property owners would pay 70% and 30% would be paid by the City. Zimmer questioned if the service lines could be bored from the south side of the road during the sewer project and connected to the watermain later. Kennedy felt this was an option and will look into it further. Motion by Zimmer and seconded by Tendrup to pass the following resolution, MCU: RESOLUTION 6-08-2004 (1) A RESOLUTION RECEIVNG REPORT AND CALLING HEARING ON IMPROVEMENT WHEREAS, pursuant to motion of the council on June 3, 2004, a report has been prepared by SEH, City Engineer, with reference on the improvement to extend watermain to serve parcels along Cedar Street (Co. Rd. 225) from Division Avenue to the City properties and this report was received by the Council June 8, 2004, and; WHEREAS, the report provided information regarding whether the proposed project is necessary, cost-effective and feasible, NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BIGFORK, MN: 1. The council will consider the watermain improvements in accordance with the report and the assessment of abutting property for all or a portion of the cost of the improvement pursuant to Minnesota Statues, Chapter 429 at an estimated total cost of the improvement of $34,931.59. 2. A public hearing shall be held on such proposed improvement on the 29th day of June, 2004 in the council chambers of the city hall at 7:15 p.m. and the clerk shall give mailed and published notice of such hearing and improvement as required by law.

The Cedar Street sewer project was the final item that Kennedy had for the Council. She explained that the efforts to televise the existing line to find out the size and condition it is in were unsuccessful. After talking to the contractor who installed the line, it was discovered that the line is very shallow, only about 4’ at the west end. In addition, the line may be under the road rather than in the ditch. The televising that was done shows mineral deposits and egg-shaped line, which suggests collapsing. Because of these issues, it will be necessary to install the new 8” sewer line if the Council wishes to go forward with this project. Kennedy reviewed one possible variation in the project. She explained that at the time of the plan designs, Lovdahl’s intentions for development were not known. At this time, if they are interested in obtaining sewer service, we could add another 8” line to the project. This line would come off the westernmost manhole and cross the road to allow Lovdahl’s to tie in a number of services in the future. Bonnie Lovdahl stated that the addition of this line would benefit them and they understand there would be an assessment on their property for it. Salmi inquired if there was any grant money available for these projects. Kacon stated that the projects were taking place to fast to have time to look for grants. Kennedy added that even if there had been more time, these projects were too small to qualify for any grant dollars. She explained that the City would be looking at securing a low-interest loan through the local bank to fund the project. The Council also was of the opinion that the City would be securing a short-term loan and paying it off with the proceeds from the sale of the city-owned lots. Salmi felt that all of the projects going on in the City should be tied together in order to apply for grants. Kennedy explained that the Legacy Development project was being paid for by TIF and so would not qualify for grant money. In addition, you need to have a clearly defined scope of a project in order to apply for grants. Kacon felt that the City’s $10,000 or $15,000 share of these projects is a relatively small amount. Tendrup added that we are using the services of our new engineer to stop the piecemeal that has gone on in the City up until now. A motion was made by Tendrup and seconded by Lexvold to approve the following resolution, MCU: RESOLUTION 6-08-2004 (2) A RESOLUTION ACCEPTING QUOTE WHEREAS, pursuant to requesting quotes for the improvement of the sanitary sewer extension to serve parcel along Cedar Street (Co. Rd. 225) from Division Avenue to the city properties, quotes were received, opened according to law, and the following quotes were received: Casper Construction $34,037.00 Itasca Utilities $36,320.00 AND WHEREAS, it appears that Casper Construction is the lowest responsible bidder, with a quote of $34,037.00. NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BIGFORK, MN: 1. The mayor and clerk are hereby authorized and directed to enter into an Agreement with the lowest responsible bidder for the sanitary sewer improvement. Adoption of this resolution by the Council shall constitute the Agreement.

Holt Wastewater Connection Application: The Council reviewed Orbin Holt’s wastewater application that was tabled at the last meeting. Due to the fact that the Council is now moving ahead with their project on Cedar Street, there will be stipulations on Holt’s application. Holt will now be able to tie into the sewer system at the new manhole that will be installed as part of the City’s portion of the project rather than having to run his line all the way back to Division Ave. A motion was made by Lexvold and seconded by Zimmer to approve Holt’s application with the stated stipulations, MCU. A motion was made by Tendrup and seconded by Zimmer to waive the $500 application fee in lieu of Holt’s other contributions to the project, MCU.

Tarry Edington: Tarry Edington addressed the Council with requests and information regarding the proposed WilderNest housing development. The next application for funding will be sent on July 20th. Edington had a list of items that needed to be in place by July 16th in order to get the application sent on time. The items included a land use permit, a special use permit, a variance, approval of water/wastewater connection, a resolution of endorsement, a threshold letter, a general letter of support, and waiving of any associated fees. There are also some items needed in regard to the TIF financing for this project, however, Edington does not have all the relevant information compiled for that at this time. Edington explained that a special use permit is needed because the City’s current zoning ordinance does not allow multi-family dwellings in residential zones. The variance is needed because of the implied regulation of one dwelling unit per 8,400 sq feet. This project will place 12 units on 60,940 square feet, making one dwelling unit per 5,078 square feet. Edington explained that the land use permit application, special use permit application, and variance application need to go to the Planning Commission first. These will be considered at the July 7th Planning Commission meetings and the Planning Commission’s recommendations will be acted on at the July 13th City Council meeting. The Council was able to act on the water/wastewater application immediately. A motion was made by Tendrup and seconded by Lexvold to grant preliminary approval of the water/wastewater application for WilderNest contingent upon receiving and approving plans once they are drawn up, MCU. A motion was made by Lexvold and seconded by Tendrup to waive the $500 application fee as a donation to the WilderNest housing project, MCU. Edington explained that waiving of the fees helps to keep the project costs down and it also counts as a local contribution to the project, which helps the application for grant money to score higher. He also stated that the granting of a variance is counted as a local contribution and he can assign a dollar amount to that item. The Northern Itasca Joint Powers Board is raising funds to purchase the land for the project and donate it. North Itasca Electric has agreed to offer discounted appliances for the units. Each of these things counts as local contribution and helps the application get funded. Edington wrapped up with a handout of general information regarding the design and layout of WilderNest. A copy of these items is available from the City Clerk. Salmi questioned what the City’s contribution to this project would be and if they will be bonding. Edington explained that the City would bond for the TIF dollars to put into the project and that bond would be paid back through TIF revenue generated by the project. Salmi questioned what the City would do if the sewer ponds would not handle the additional usage. Tendrup stated that Kennedy has already looked into this issue and feels that the steps we are taking to correct the inflow and infiltration problems will go a long way to helping the capacity problem.

Elections: Storlie has been in contact with the County Auditor’s office regarding the concerns that have been brought up regarding elections. The Auditor’s office is aware that there are people registered to vote in the City election who do not live in City limits. They perform a review of the list of registered voters each year to try to eliminate any of these. In addition, you can no longer register to vote with a post office box, you must have a physical address. Storlie has reviewed the County’s list of eligible City addresses to ensure they are all correct. Kacon felt that these measures should be enough to take care of the problem. Tendrup felt that a community did miss out by not having a polling place on election day, however she did not think it was feasible to try to change for the 2004 election. She suggested getting more voter input as to whether or not the people liked the mail-balloting or if they would prefer to vote at City Hall on election day. Any citizen having an opinion on this issue is encouraged to contact the City Clerk or a Council Member to voice their opinion.

NEW BUSINESS:

Bovey Centennial Celebration Advertising: Storlie has been approached about advertising in the Bovey City Centennial brochure. The cost is $100 for a business card sized ad. The Council did not wish to do this.

Resolution 6-8-2004 (3): The City Council received a letter from Bigfork Valley hospital requesting a resolution of support to change the name of County Road 78 (Hospital Road) to Bigfork Valley Dr. A motion was made by Zimmer and seconded by Lexvold to pass the following resolution, MCU: RESOLUTION 6-08-2004 (3) A RESOLUTION SUPPORTING THE APPLICATION OF BIGFORK VALLEY HOSPTAL TO CHANGE THE NAME OF COUNTY ROAD 78 WHEREAS, a request has been received by the Bigfork City Council from Bigfork Valley Hospital requesting the support of the Bigfork City Council to rename the road currently known as County Road 78 (Hospital Road) to Bigfork Valley Dr., and; WHEREAS, the Bigfork City Council has no objection to the renaming of the road currently known as County Road 78 (Hospital Road) to Bigfork Valley Dr., NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BIGFORK, that the Bigfork City Council supports Bigfork Valley Hospital’s request to change the name of the road currently known as County Road 78 (Hospital Road) to Bigfork Valley Dr.

OTHER BUSINESS:

Kacon read letters to the Council from Marilyn David and Joyce Holsman. The letters stated that both employees were voluntarily giving back their 8% and 9% raises respectively and accepting a 4% pay raise effective June 1, 2004. The Council accepted this. It was questioned what should be done about future pay raises in light of this development. Previously, the Council had voted that David and Holsman would not be eligible for pay raises at their next performance reviews. Kacon instructed Storlie to contact City Personnel Attorney John Licke for his advice on this.

Kacon presented an award that was given to the Picaroon Saloon for passing a compliance check on May 27, 2004 by the Itasca County Sheriff’s Department. The clerk on duty refused a tobacco product sale to a minor. The Itasca County Sheriff’s Department thanked the Picaroon Saloon for helping to prevent youth addiction to tobacco.

Salmi questioned if the Council was paid for each additional special meeting that was called. Storlie stated that they are paid $25 per meeting.

There being no further business, Mayor Kacon adjourned the meeting at 9:32 p.m.

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 May 2004

2 19:05 domestic argument / woodland terrace 4 06:11 burglary business / forced 10 12:43 criminal damage to property / bigfork school 11 13:28 exhibition driving / main street 14 18:34 careless handling of a firearm, possession of marijuana / woodland terrace 17 17:40 dog at large woodland terrace 25 15:43 urinating in public / picaroon saloon 26 11:57 intrusion alarm, home / lehinger road 27 16:26 fail to provide proof of vehicle insurance 28 17:52 theft of auto / main street 29 11:55 parking violation pine tree villa 29 12:19 fleeing a peace officer, aiding an escapee / hwy 1