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

City of Bigfork

Regular Meeting March 9th, 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, Jean Lexvold, and Amy Tendrup Absent: none Also Present: Julie Kennedy, Gary W. Schwersinski, Mark Maki, Joyce Holsman, Connie Maki, Vikki Card and Cathryn McLynn.

Mayor Kacon called the meeting to order at 7:00 p.m.

Consent Agenda Motion by Zimmer, seconded by Lexvold to approve the consent agenda as follows: #1- approval of the minutes of the February 10th, 2004 regular city council meeting #2- removed (police report) #3- approval of the Library report for February 2004 of 117 books checked out and 31 readers using the library #4- approval of the Budget report for February 2004 #5- approval of the transfer of $2,767.00 from the Liquor Store Improvement Investment fund to the general checking account for electrical work done at the Picaroon Saloon as approved at the January 13, 2004 regular city council meting #6- approval of the claims for payment in the amount of $43,770.25, including the February 13th and 27th payrolls. Approval of the payment of two additional claims in the amount of $54.92. Motion Carried Unanimously (MCU)

OLD BUSINESS:

Resolution 3-9-2004 (1): Appointing to Council: The Council received two applications for the open council seat. Both were qualified applicants. After taking a vote on paper, a motion was made by Tendrup, to pass the following resolution: WHEREAS, the Bigfork City Council has declared a vacancy on the Council pursuant to the resignation of Council Member Lawrence D. Yerger; WHEREAS, the City of Bigfork will hold a general election on November 9, 2004 at which time a candidate will be elected to fill the remaining term: WHEREAS, appointment to fill the vacancy will expire on December 31, 2004; BE IT RESOLVED, that the Bigfork city Council appoints Steve Grover to fill the vacancy. motion seconded by Lexvold, MCU.

Update from City Engineer: Julie Kennedy of SEH Engineering gave an update on the various projects they are working on for the City. Public Works Superintendent Mark Maki is researching the next steps we need to take to get Well #4 online. Kennedy is working on cost estimates for the different options for treating the water from this well. The certificates for the lots on Cedar Street have been filed with the County. The survey crew will be up next week to place the pins and the lots will then be ready to be put up for sale. Maki has worked with Minnesota Rural Water to get the sewer line in that area televised. It is a six-inch line that does have some mineral deposits. Kennedy suggested that it should be replaced with an eight-inch line and tie it into the system that Orbin Holt is installing to service his property. She is working on the design and cost estimate for this project and will have it ready for the next council meeting. The City Council has already authorized SEH to begin work on the water/wastewater system assessment study. Kennedy presented a contract regarding the costs for this assessment. The cost is not to exceed $5,600. Motion by Zimmer, seconded by Tendrup to accept this contract, MCU. Kennedy explained that the Council needs to choose a financial advisor to use for the TIF district that will be used for Steve Gilbertson’s project. She recommended Northland Securities but stated that the Council also had the option of going out for request for proposals. Motion by Tendrup, seconded by Zimmer to use Northland Securities, MCU. Kennedy also stated that we will need legal counsel that specializes in TIF districts. She will send up a list of names of these firms for the City’s review. Kennedy suggested that we have a special meeting with everyone involved in this project, including the financial advisor, to set up the TIF. The date and time of this special meeting will be set after confirming with the others involved. At this meeting, we will also meet with representatives from the hospital to discuss their request for land from the City, as well as the location of city watermains in relation to the proposed new expansion.

At this time in the meeting, Mayor Kacon moved the Logger’s water main repair costs to the top of the agenda. Maki gave the Council a short background on the situation. In January, Logger’s called the City with a problem with their water. Maki and Tom Gustafson investigated the problem and suggested that Logger’s hire a welder to come and try to thaw out the line. The welder was hooked up for about 50 hours and did not succeed in thawing out the line. At that time, the City dug up the curb stop and found that it did not work. In addition, the curb stop was not located on the property line as was originally thought, but was located about 400’ up the road. Casper Construction repaired the curb stop box at a cost of $2,025.50 to the City. Now there is some confusion as to who is responsible for the cost of the welder. In 1990, the City Council minutes show that the council suggested that the City Attorney draw up an agreement stating that the owners of Logger’s would be responsible for any problems that occurred on their property, however the actual agreement has not been found. Motion was made by Lexvold, seconded by Zimmer to pay the $2.025.50 invoice that is the City’s responsibility, MCU. It was determined that the Clerk should try to find the agreement that was made in 1990 and the she and Maki should discuss the issue with City Attorney Andy Shaw. Maki reported that he is taking steps to ensure that this type of conflict will not occur in the future by locating curb stop boxes at the property line.

NEW BUSINESS:

Planning Commission Recommendation – Letter of Intent to Vikki Card: A draft of a letter of intent was submitted by the Planning Commission. Vikki Card had attended the last PC meeting and was also present at this Council meeting. She explained that she is working on opening a kennel at her home and would like a letter of intent from the City stating that they would use her facility in the enforcement of the animal ordinance. The City currently cannot effectively enforce its animal control ordinance due to the fact that there is no local pound to utilize for strays, dangerous, or potentially dangerous animals. Many of the details as to exactly how the cooperation between the City and Card would occur have yet to be determined, however the Planning Commission felt that the City could send a letter of intent to utilize her facility without making any further commitments at this time. Motion by Zimmer seconded by Lexvold to send the letter as drafted, MCU.

Resolution 3-9-2004 (2): Motion by Zimmer, seconded by Tendrup to pass resolution 3-9-2004 (2), MCU. This resolution is attached to the minutes as appendix A.

Resolution 3-9-2004 (3): Motion by Zimmer, seconded by Tendrup to pass resolution 3-9-2004 (3), MCU. This resolution is attached to the minutes as appendix B.

Transfer to Fire Fund for 2004 Fire Contract: Storlie explained that in past years, the fire contract was paid with property tax income. Our new auditor stated that this is not the proper way to do it and we should be transferring the money from another fund such as the general, water or sewer fund. Storlie stated that the amount for the 2004 fire contract is $20,500.00. We are not able to transfer the entire amount at this time. Motion by Zimmer, seconded by Tendrup to transfer $2050.00 each month from the general fund to the fire fund for the remainder of 2004, MCU. Because of the way it was paid in the past, the City has been short in each of the past two years of the total amount that should have been paid. Motion by Zimmer, seconded by Lexvold to transfer 1/10 of the amount we were short each month from the general fund to the fire fund for the remainder of 2004, MCU.

No Fault and Uninsured/Underinsured Motorist Insurance Coverage: The League of Minnesota Cities Insurance Trust sent a memo to the City explaining that, due to a recent court decision, unregistered vehicles such as marked police cars and fire trucks are not automatically covered for no fault or uninsured/underinsured motorist coverage. The cost for no fault coverage would be $30.00 per year and the cost for U/UI coverage would be $187.00 per year. Motion by Zimmer, seconded by Lexvold to obtain this coverage, MCU.

City Volunteer Accident Coverage: The City had requested a quote on insurance coverage for volunteers of the City. Our current insurance policy would cover volunteers involved in an accident where the City was found to be at fault. This additional coverage would provide insurance benefits to volunteers who are injured while volunteering for the City if it is found to be their own fault or a no-fault situation. The cost to the City is $150.00 per year. Motion by Zimmer, seconded by Tendrup to obtain this coverage, MCU.

2004 MCFOA Annual Conference: Storlie would like to attend the 2004 Minnesota Clerks and Finance Offices Association annual conference again this year. She needs to attend the conference for her municipal clerk certification. Motion by Lexvold, seconded by Tendrup to allow Storlie to attend, MCU.

Safety & Loss Control Workshop: Storlie and Maki would both like to attend this workshop at a cost of $20.00 each. Motion by Lexvold, seconded by Tendrup to allow Storlie and Maki to attend the workshop, MCU.

Snowmobiles: Kacon addressed the Council regarding our snowmobile trail in town. He feels that we need to be proactive about promoting the area to snowmobilers. Zimmer suggested that our first step might be to contact the local snowmobile clubs to ask them about opportunities that might be available. Kacon suggested using our website to promote as well.

Pete Remington – Volunteer Mowing: Pete Remington is interested in volunteering his time to mow at the airport again this summer. He will sign a release waiver. Motion by Tendrup, seconded by Lexvold to allow Remington to volunteer again this year with a “thank-you” for his efforts last year, MCU.

City Truck: Maki explained that quite a few trucks have come out on the market that would fit the City’s needs. The problem is that these trucks move quickly. He asked the Council to authorize him to choose a truck within the limits of our spending. Storlie explained that Shaw recommended the City do this and then call an emergency meeting to complete the paperwork once Maki has chosen a vehicle. Motion by Tendrup, seconded by Zimmer to allow Maki to choose a truck within our spending limit, MCU.

JOBZ Business Subsidy Policy: Since the City was awarded two Job Opportunity Building Zones, we need to have a business subsidy policy in place before we can allow a business to move into one of these zones and start participating in the program. The policy will spell out the criteria that the City is requiring any business moving in to a zone to comply with. Motion by Tendrup, seconded by Zimmer to refer this item to the Planning Commission, MCU.

Itasca County Plowing/Grading Contract: The contract for plowing and grading with Itasca County needs to be renewed. The cost has increased to $350 per mile. Motion by Tendrup, seconded by Lexvold to renew the contract, MCU.

Bigfork Wilderness Celebration Law Enforcement: Last year the City contributed one-half the cost of the extra law enforcement needed for the celebration. Motion by Zimmer, seconded by Tendrup to pay for one-half the cost of the extra law enforcement for the 2004 celebration, MCU.

Donation Requests: The City received donation requests from the Bigfork Elementary Spring Carnival, Minnesota Highway 38 Leadership board, North Itasca Joint Power Board, and First Call. The Council made a donation to the Elementary Carnival in April of 2003, which would go toward the 2004 carnival, and therefore decided not to donate again at this time. The MN Hwy 38 Leadership board was asking for $150.00 for administrative costs. The NIJPB was asking for $500 to be put towards the purchase of land to be donated to the WilderNest housing project. First Call did not specify an amount. Storlie informed the Council that the budget for donations for 2004 is $400. Kacon suggested the possibility of donating a lesser amount than was asked to each group and send it along with an explanation of our budget constraints. Motion by Zimmer, seconded by Tendrup to donate $100 each to the Highway 38 Leadership Board, NIJPB, and First Call and send along a letter of explanation, MCU.

Firemen’s Relief Association By-Law Amendments: The Firemen’s Relief Association had a meeting on February 26th and passed amendments to their by-laws relating to vesting, applications for benefits, death benefits, and service pensions. These amendments now need to be approved by the City Council. Motion by Zimmer, seconded by Lexvold to approve the amendments as presented, MCU.

OTHER BUSINESS:

Maki requested that once a new truck is purchased, he be allowed to put the old red truck out on bids. He also would like to put the old police squad car and a few other items of excess equipment out on bids. Motion by Zimmer, seconded by Tendrup to allow Maki to put excess equipment out on bids, MCU.

Amy Tendrup reported that People In Business Care has voted to donate $1500 to the City recreation program, with the possibility of another $1500 once we hire a lifeguard. Kacon stated that Bigfork Township has voted to donate $1000 toward the recreation program. He thought that we should start advertising for a lifeguard more aggressively. Motion by Tendrup, seconded by Lexvold to authorize Storlie to advertise in the newspapers for a lifeguard, MCU.

There being no further business, Kacon adjourned the meeting at 8:53 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

WHEREAS, the Taxpayers League and others are endorsing proposals to amend the State Constitution to institute tax and expenditure limitations at the state, and potentially local, levels of government that could only be overridden by vote of the people – an example of these proposals is the “Taxpayers Bill of Rights”;

WHEREAS, such proposals would tie the hand of state and local leaders in times of crisis and other unpredictable circumstances, putting state and local government on “auto pilot” and circumventing thoughtful consideration of policy decisions;

WHEREAS, such proposals would prevent state and local officials from making the tough decisions they were elected to make, passing the responsibility for learning all aspects of often complex issues to citizens who have other jobs and responsibilities;

WHEREAS, amending the constitution is a virtually irrevocable action and should only bee undertaken when legislative remedies have proven inadequate;

WHEREAS, such proposals are unnecessary – a “solution in search of a problem” – as demonstrated by lawmakers at both state and local levels of government taking action to deal with one of the worst budget crises to hit the State of Minnesota and, by result, Minnesota’s cities;

WHEREAS, This is further demonstrated by the fact that state and local spending as a percentage of personal income has actually declined in recent years, even before the 2003 deficit;

WHEREAS, regardless of whether TaBOR/TELs are applied just to the State or to local governments as well, these proposals would bring great harm to local communities through continued reductions in state funding, increases in unfounded State mandates, and, potentially, direct tax and expenditure limitations at the local level, which would severely erode decision-making at the local level and the ability to provide the basic services residents and businesses expect and deserve;

WHEREAS, such proposals would force the State, and potentially cities, to spend valuable time and money asking for permission from the same people who elected them before any action can be taken on important issues, and would also force taxpayers to pay twice for governance – once for elections of their State and local officials, and again for elections to make the decisions those officials should have made.

WHEREAS, such proposals contradict the fundamental principles upon which our constitution and system of government are based – that representative, not direct, democracy is the most effective form of government as it is most likely to result in good public policy;

WHEREAS, those state that have instituted proposals similar to the Taxpayers Bill of Right, such as Colorado, now face severe problems in meeting the basic needs of their citizenry;

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Bigfork that this Council believes that state and local elected officials are elected to do a job – that job is to represent the interests of their constituents, to deal with difficult decisions, to thoughtfully debate and determine the best course of action for the state or the community they serve.

BE IT FURTHER RESOLVED that this Council opposes limits on state and/or local taxes and expenditures, whether through constitutional amendment or other means, and supports the principle of representative democracy as the best route to sound public policy.

Appendix B

WHEREAS, Minnesota contains over 135,000 miles of roadway, and over 19,000 miles—or 14 percent--are owned and maintained by Minnesota’s 853 cities; and

WHEREAS, city streets are a separate but integral piece of the network of roads supporting movement of people and goods; and

WHEREAS, existing funding mechanisms, such as Municipal State Aid (MSA), property taxes, special assessments and bonding, have limited applications, leaving cities under-equipped to address growing needs.

WHEREAS, maintenance costs increase as road systems age, and no city-large or small—is spending enough on roadway capital improvements to maintain a 50-year lifecycle; and

WHEREAS, the Council of the City of Bigfork finds it is difficult to develop adequate funding systems to support the City's needed street improvement and maintenance programs while complying with existing State statutes; and

WHEREAS, the League of Minnesota Cities, the Minnesota Public Works Association and the City Engineers Association of Minnesota, have jointly sponsored the development of a report entitled Funding Street Construction and Maintenance in Minnesota's Cities wherein (1) the street systems of the cities within the State are inventoried; (2) the existing funding systems are detailed and evaluated; and (3) recommendations are made; and

WHEREAS, cities need flexible policies and greater resources in order to meet growing demands for street improvements and maintenance.

NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF BIGFORK that this Council concurs with the findings of the above referenced report, and fully supports the recommendations contained in that report; and

BE IT FURTHER RESOLVED BY THE COUNCIL OF THE CITY OF BIGFORK that this Council supports the adoption of legislation that would provide cities with the policy options they need to address current and future challenges in providing adequate street improvement and maintenance programs.