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

City of Bigfork

Regular Meeting May 11th, 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, Steve Grover, Jean Lexvold, Bob Zimmer, Amy Tendrup Absent: none Also Present: Dave Waters, Chet Cook, Gene Madsen, Ron Bailey, Gary W. Schwersinski, Mark & Connie Maki, Joyce Holsman, Marilyn David, Julie Kennedy, Dick Salmi, Marv Richards, Police Chief Jon Babcock and Mike Bakke

Mayor Kacon called the meeting to order at 7:00 p.m. and announced the results of the April 13, 2004 closed meetings as follows: At the closed meeting held on April 13, 2004 performance reviews of the Librarian and Liquor Store Manager were conducted. As a result of these performance reviews, the Liquor Store Manager’s salary was increased by nine percent and the Librarian’s hourly wage was increased by eight percent. These raises were effective with the pay period beginning April 15, 2004.

Consent Agenda Motion by Zimmer, seconded by Grover to approve the consent agenda as follows: #1- approval of the minutes of the April 13th regular and the April 27th special meetings #2- approval of the police reports for February, March, and April 2004, reports are attached to the minutes as Appendix A #3- approval of the library report of 117 books checked out and 35 readers using the library #3- approval of the April 2004 budget report #4- approval of the claims for payment in the amount of $45,101.94, including the April 15th and 30th payrolls Motion Carried Unanimously (MCU)

OLD BUSINESS:

Julie Kennedy, SEH, Inc,.: Kennedy’s first item of business was a recommendation from the Planning Commission to approve the preliminary plat of Scenic Estates by Legacy Development. The Planning Commission has held a public hearing on this issue. Kennedy briefly reviewed the project. Legacy Development is proposing a 31-unit senior-targeted housing development and an 18-unit affordable housing development. The project will be completed in phases with Phase I containing construction of roadways with subgrade material and surfacing with Class V aggregate. A temporary drainage plan will be developed. The sanitary sewer and watermains will be constructed through part of the property. When the developer is ready to construct more housing units, the remainder of the utilities will be installed and the roads will be finished with concrete curb and gutter and bituminous pavements. One year after completion, the utilities and streets will be turned over to the City. There are five outlots of greenspace in the plans. The two outlots in the affordable housing area will be dedicated to the City. The three outlots in the senior housing area will be maintained by the senior housing association. A motion was made by Tendrup and seconded by Lexvold to approve the preliminary plat of Scenic Estates by Legacy Development as presented, MCU.

Kennedy’s next item was the special assessment policy. The Council had received a copy of the proposed policy at the last meeting. Kennedy pointed out that there are areas that could be changed if the Council wanted. Kacon felt that if this was a fairly standard policy, the Council should pass it as is. There is always the option of making changes at a later date if the Council wishes to do so. Motion by Zimmer seconded by Grover to adopt the policy as written with the ability to deviate and amend it as needed, MCU.

Kennedy’s final item was the Cedar Street sewer project. She has completed the feasibility report and presented it to the Council. She reviewed the report pointing out that they have found that the project is necessary, cost effective and feasible. The project includes reconstruction of old pipe with mineral deposits. The estimated cost is $34,894.12. Of this, the City would pay $10,468.24 and the benefiting property owners would pay $24,425.88. The estimated assessment per unit is $6,106.47. If the Council wished to move forward with this project, they would need to pass a resolution tonight receiving the feasibility report and calling for a public hearing on the improvement. Motion by Zimmer, seconded by Tendrup to pass resolution 5-11-2004 (1), MCU. This resolution is attached to the minutes as Appendix B.

Kacon asked that Kennedy stay for the next two items he had to bring up. The Fine Arts center has presented an application for water/wastewater connection. Ron Bailey was present with a drawing of their proposal for relocation of the waterline. The Council expressed their desire to have the waterline relocated in the street right-of-way rather than across a lot. With Kennedy’s recommendation, the Council imposed requirements that the Fine Arts Center relocate the waterline along the Second Avenue right-of-way if possible. If it is not possible to stay in the right-of-way, the Fine Arts Center will be required to obtain easements for the City to maintain the line after its installation. Finally, the Council is requiring that gate valves be installed on each end of the waterline to ensure the ability to isolate the line. Motion by Lexvold, seconded by Zimmer to grant preliminary approval of the water/wastewater application of the Fine Arts Center with the added requirements as discussed, MCU. The normal fee for a water/wastewater application is $500.00. Kacon asked if the Council would be willing to waive this fee. Motion by Grover, seconded by Lexvold to waive the application fee, MCU.

Kacon’s final item for Kennedy was the Woodland Terrace trailer park. The owners of the park have been in contact with Kacon and are still very interested in obtaining individual meters for each unit in the park. Maki has stated that the City currently has enough of the old style meters to furnish the park, however he has many concerns about future maintenance responsibilities. He predicts many problems of broken and frozen meters if changes are not made in the park requiring skirting and heat tape for each unit. Kennedy has talked with a contact of hers who owns numerous trailer parks in the area. He informed her that it is not uncommon for the owner of the park to be responsible for installation and maintenance of meters on individual units. It is also common for the owner to carry the ultimate responsibility for any past due and unpaid bills. He also stated that you can expect up to a 30% decrease in usage once individual meters are installed. Kacon and Maki will set up a meeting with the owners of Woodland Terrace to discuss the concerns and issues surrounding this.

Gene Madsen: Gene Madsen was present to address the Council. He first informed the Council that he would be finishing the log of the lumberjack statue this spring. He also noticed that there were less junk cars around town and hoped the Council was still working on this issue. His final item was the municipal liquor store. Madsen expressed concerns that the liquor store has lost money in four out of the last five years. He asked the Council how they could justify giving the liquor store manager the top score possible on her performance reivew and a 9% raise when just last year, the store lost almost $21,000. Kacon stated that the liquor store manager’s was the first performance review the Council had done and they were unaware of the grading system and how much the possible raise could be. The Council will be revising this system. Madsen pointed out that, regardless of what the top possible raise could be, the fact that the store lost money should have affected the outcome of the performance review. He called on the Council to make changes. He stated that it is not right to be robbing the water and general funds to cover the loss in the liquor fund. Zimmer stated that the Council realizes that there is a problem. They have established a Liquor Store Commission, which has been making changes to save money and to increase revenue. A public hearing on the future of the municipal liquor store has been set for October 12, 2004. Madsen pointed out that part of the problem is in the wages and benefits paid. He stated that in most businesses, wages should be about 20% of the total amount disbursed for the year. The Picaroon Saloon’s wages and benefits account for 70%-80% of the total disbursements. He questioned if there is too much help for how much business there is. Kacon stated that it would help if there were more locals supporting the liquor store. The Picaroon has been dependent upon tourism for much of it’s business. Madsen asked why this is. Kacon felt that the local people should stop into the establishment and see for themselves rather than believing all the rumors that are spread about the business and it’s employees. Madsen told the Council that he knows they have a hard job. He has been on the Council himself and sometimes you have to do difficult things. He asked if it was time for a new liquor store manager. Kacon said that he has seen things done legally, professionally, and courteously in the liquor store. Unless his presence alters the behavior, he has not seen the problems that he hears about on the street. Madsen’s final comment was that it would be a shame to close the business since it has been proven that municipal liquor store can be good money-makers for the City.

Consolidation of City Funds: Storlie presented a list of the City funds that would be combined as recommend by the city auditor. These include combining the Cemetery, Recreation, and Airport funds into the General fund, the Fire Contract and Fire Relief funds into the Fire fund, and the Liquor Pull Tab fund into the Liquor fund. It also allows for the public works/maintenance worker wages to be charged to the area in which he works rather than to an Unallocated fund. Storlie also presented a list of transfers from each of the funds that will be discontinued. Motion by Lexvold, seconded by Grover to approve the consolidation of City funds as recommended, MCU.

Resolution Supporting Restoration of Unfair Cuts to Local Government Aid: Motion by Grover, seconded by Zimmer to pass resolution 5-11-2004 (2), MCU. This resolution is attached to the minutes as Appendix C.

NEW BUSINESS:

Mark Maki: Maki first requested a phone line for the City Garage. He stated that they are using up cell phone plan minutes calling 800 numbers that could be called from a landline. Furthermore, the cell phones do not work in the garage, so when they do call someone they have to go outside and all their papers are in the garage. Motion by Zimmer, seconded by Grover to allow a phone line for the City garage, MCU. Maki’s second item was repair costs for the air pump for the Rajala Mill lift station. The estimate for repairs is $840. Motion by Zimmer, seconded by Lexvold to allow this repair, MCU.

Sign Permits: The Bigfork Presbyterian Church turned in an application for three signs to be installed near the intersection of So. Rajala Mill Rd & State Hwy 38, near the intersection of Ash St. & State Hwy 38, and near the intersection of Golf Course Lane and Scenic Hwy 7. Motion by Grover, seconded by Tendrup to approve the application. Members voting yes: Grover, Tendrup, Lexvold, Kacon. Being a member of the Bigfork Presbyterian Church, Zimmer abstained from voting, motion carried. The Bigfork Lutheran Church turned in an application for a sign to be installed in the grassy area between their parking lot and State Hwy 38. Motion by Lexvold, seconded by Grover to approve this permit, MCU. Marv Richards was present with another drawing of the Bigfork Valley Hospital sign with the incorporation of other signs in that area. He asked who would be responsible for paying for these additional signs. The Council felt that each organization or business would be responsible for paying for their sign. It was decided not to approve the new drawing until the organizations and businesses had been approached and a definite sign was designed.

JOBZ Business Subsidy Policy Hearing: Storlie explained that in order to pass the JOBZ Business Subsidy Policy, the Council needed to hold a public hearing. Motion by Zimmer, seconded by Lexvold to set the public hearing for June 8, 2004 at 7:00 p.m., MCU.

OTHER BUSINESS:

Zimmer extended a thank you to Police Chief Jon Babcock, Maki and Storlie for getting the junk car at the airport removed.

Dick Salmi stated that he had been out to the airport and noticed a power line exposed on one of the pumps. Also, the bathroom door was open.

Salmi stated that he would like to see Bigfork go back to having elections at the City Hall rather than by mail ballot. He stated that there were many people voting in the last City election that did not live in City limits. He also felt that we would get a better voter turn-out by holding elections here in town. The Council will look into this.

Zimmer stated that he had talked to Cathrynn McLynn about a possible demolition dumpsite in Bigfork. Storlie stated that she had sent a letter to Itasca County Zoning and a representative from there will be in attendance at our May 25th meeting to discuss this item.

Maki stated that he would like to make appointments with each of the Council members to take a tour of the City to see the facilities and problems that we are facing.

There being no further business, Kacon adjourned the regular meeting at 9:05 p.m. and announced that two closed meetings would be held immediately for the performance reviews of Bartender Cathy Schumacher and Public Works/Maintenance Worker Dave Waters.

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 - February 2004 3 01:18 property damage fire hall 7 11:43 trespass/snowmobile Bigfork School 7 15:29 trespass/snowmobile golf course road 8 19:42 ambulance call Pine Tree Villa 9 15:42 hit and run two vehicle Kocian’s IGA 9 23:43 theft public building Bigfork School 10 00:00 theft of firearm 11 05:37 intrusion alarm business night 21 18:45 violation of instruction permit 21 00:05 possession small amount of marijuana/illegal possession of alcohol 21 00:05 open bottle/illegal possession of alcohol 21 01:29 assault/disorderly conduct 26 18:59 probation check 27 18:10 intrusion alarm business day

Bigfork Police Department Police Report - March 2004 1 09:30 theft/rajala mill 3 18:17 assist state patrol/hwy 38 3 23:13 motorist assist 4 15:11 fraud/trailer court 5 15:17 furnish tobacco to minor 5 15:28 illegal possession of tobacco 11 09:00 m.v.a. 2 vehicle husky blvd. 15 15:36 speed/hwy 38 16 16:17 driving after revocation/trailer court 18 10:31 fail to register snowmobile 19 16:00 fraud/bank 19 20:29 theft/nursing home 20 07:36 harassment, parole violation, D.W.I. Driving after cancellation maple st. 24 15:30 threats/nursing home 29 11:37 m.v.a. two vehicle main street 30 15:32 theft from vehicle

Bigfork Police Department Police Report - April2004 2 12:37 civil papers served/over due water bills 2 15:35 illegal possession of tobacco/cenex 7 15:40 mentally disturbed male/clinic/transport psych. Ward 15 12:00 burglary, home, forced 15 12:20 assault, 5th degree/school 16 09:45 instruction permit violation 17 10:00 domestic assault/trailer court 17 15:24 domestic argument/trailer court 20 12:32 illegal possession of tobacco/school 20 12:33 possession of drug paraphernalia/school 21 23:25 domestic assault, assist s.o./county 42 27 17:05 lock out /cenex 27 18:48 runaway juvenile male 28 09:46 property damage/rajala mill 28 13:40 permit to purchase handgun 28 16:30 lock out /cenex 29 14:07 haz mat, fuel spill, assist fire dept./airport 29 21:18 property damage/trailer court 29 09:30 lock out/husky café

Appendix B

Resolution 5-11-2004 (1)

A RESOLUTION RECEIVING REPORT AND CALLING HEARING ON IMPROVEMENT

WHEREAS, pursuant to motion of the Council on April 13, 2004, a report has been prepared by SEH, City Engineer, with reference on the improvement to extend sanitary sewer to serve parcels along Cedar Street ( Co. Rd 225) from Division Avenue to the City properties and this report was received by the Council May 11, 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, MINNESOTA:

1. The Council will consider the sanitary sewer improvements in accordance with the report and assessment of abutting property for all or a portion of the cost of the improvement pursuant to Minnesota Statutes, Chapter 429 at an estimated total cost of the improvement of $34,894.14. 2. A public hearing shall be held ion such proposed improvement on the 25th day of May, 2004 in the council chambers of the City Hall at 7:30 p.m. and the clerk shall give mailed and published notice of such hearing and improvement as required by law.

Adopted by the Council this 11th day of May, 2004

__________________________ Lonnie Kacon, Mayor

__________________________ Angie Storlie, City Clerk

Appendix C

RESOLUTION 5-11-2004 (2) A RESOLUTION IN SUPPORT OF RESTORING UNFAIR REDUCTIONS OF LOCAL GOVERNMENT AND (LGA)

WHEREAS, LGA is city property tax relief so that cities can afford to provide services at an affordable tax rate; and

WHEREAS, city tax rate disparities between greater Minnesota cities and suburban cities and greater Minnesota towns are growing; and

WHEREAS, city LGA was cut 25% in the current biennium to help solve the state’s budget crises, even though the state budget deficit was only 14% of the general fund; and

WHEREAS, the City market Value Credit (MVC) cuts, which primarily affected high-value suburban cities, were temporary and are restored in 2005, and the LGA cuts, which primarily effected Minneapolis, St. Paul, lower-value suburban cities and Greater Minnesota cities, were made permanent; and

WHEREAS, the state now pays for approximately 60% of the twin cities metro transit system, a much higher percentage than other states provide their metro transit systems; and

WHEREAS, over 90% of transit property tax relief goes to the twin cities metro area and it was not used to help solve the state’s budget crisis;

NOW, THEREFORE BE IT RESOLVED, THAT THE City of Bigfork hereby support HF 2332 (Rep. Dorman, R-Albert Lea) and SF 2100 (Senator Bakk, DFL-Cook), which increases LGA by $60 million statewide by making the MVC cuts permanent, using $20 million from the federal Flexible Funds sent to Minnesota last May, and by transferring $20 million of transit property tax relief to LGA; and

BE IT FURTHER RESOLVED, the City of Bigfork hereby supports the HF 2887 (rep. Marquart, DFL-Dilworth) and SF 2873 (Senator Langseth, DFL-Glyndon), which increases LGA by $45 million statewide by delaying the restoration of the Market Value Credit cuts and by using transit property tax relief if a city of 1.500 with no LGA in 2005 has not already contributed an amount equal to at least four percent of its tax base; and

BE IT FURTHER RESOLVED that this resolution be sent to Governor Pawlenty, House Speaker Sviggum, House Minority Leader Entenza, Senate Majority Leader Johnson, Senate Minority Leader Day, Senator Tom Saxhaug and Representative Irv Anderson to show the City’s support of these two bills.

Passed this 11th day of May, 2004

By: ________________________________ Mayor

Attest: ______________________________ Clerk