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

City of Bigfork

Special Meeting May 25, 2005

Members Present: Mayor Amy Tendrup, Bob Zimmer, Jean Lexvold, Richard Salmi and Amy Pifher Absent: none Also Present: Ann Collins, Mark & Connie Maki, Julie Kennedy, Robin Custer, Jon Babcock and Ron Root

Mayor Tendrup called the meeting to order at 4:45 p.m. and stated that the purpose of the meeting was to discuss the short-term loan options, public works issues and approve the specs for the fire engine and call for bids.

City Engineer Julie Kennedy explained that, as discussed at previous meetings, there were six different projects to possibly include in the short-term funding application. Four of these items are necessary and include repairs to the Powell lift station, projects to reduce inflow and infiltration, purchase of safety equipment for the Public Works Department, and funds to assist with financing applications. The other two items are providing municipal sewer service to the City House and the Rajala house located on East Ottum Ave, and providing water and sewer service to properties on Third Street. Kennedy explained that only one of the last two projects could be included in the short-term loan application, or the Council could choose to leave them both out of the application. Kennedy informed the Council that the program for short-term funding has changed since it was originally discussed. It was originally planned to use this as interim financing until such time as a large grant/loan was obtained and then to roll it into that funding. Now the program, which is provided by the Minnesota Rural Water Association (MRWA), has changed to low interest, term financing. The interest rates are variable and range from 2.880 to 4.600. With these rates, it is probably not going to be advantageous to the City to roll the loan into any long-term funding that is obtained. The long-term funding would simply be in addition to this funding. Kennedy reviewed that the City had budgeted $6,000 a year for debt service. Anne Collins wanted to know how the interested rate was determined. Kennedy was not exactly sure of how MRWA sets the interest rate but stated that it is dependent on their funding sources. Salmi wanted to know if IRR has been contacted about grants. Kennedy stated that if you are located in a mine land district, there are funds available. Salmi had talked with Mike Larson and was told that funds are available. Kennedy will check into this. She reminded the Council that we are applying for IRR funds for reimbursements of one half of the cost of the funding applications. Salmi asked about well #4. Kennedy explained that the septic systems of the city house and the Rajala house will need to be upgraded before the well will be approved for use, however they do not have to be served by the municipal system. They could be upgraded with compliant private systems. Tendrup reminded the Council that they must stick to the set agenda for the special meeting. She clarified that they needed to determine if the City house project or the Third Street project will be included in the short-term loan application. Anne Collins suggested to the Council that neither of the projects should be included in the short-term loan. Kennedy stated that this was an option. As already discussed, the East Ottum project is not an absolute necessity. Also, the Third Street project does not have to be done at this time, however Kennedy clarified that it will need to be done at some point and that the City will be responsible for the cost of it. Salmi had concerns that things are moving too fast and the City is not going to be able to handle the cost of these projects. Tendrup stated that these projects have been discussed over a period of several years and all known options have been considered. Connie Maki stated that these problems did not just happen overnight and she feels it is great that the Council is moving ahead with the projects. She feels that the residents of the City do not understand the urgency of these situations and that action needs to be taken. A motion was made by Salmi and seconded by Pifher to leave the East Ottum (City house) project and the Third Street project off of the short-term loan application, Motion Carried Unanimously (MCU). Kennedy clarified that we will be applying for approximately $58,000 to cover the other four items on the list. The previously budgeted $6,000 per year for debt service will be used to cover the payments.

Next on the agenda was public works issues. Mark Maki explained that the chlorinator pumps at the water treatment plant are in need of attention. One of the pumps has been down for a number of years and has not been repaired or replaced. The other pump is starting to have problems. The Public Works Department has tried to repair the first pump but has been unable to do so. The plant has been struggling along with just the one pump. A new pump will cost $987.33 and Maki requested permission to order it when needed. He stated that if they could make it until the end of the year without ordering it, he would budget it in for 2006. Zimmer asked if the company that quoted the new pump was a long-time supplier of the City and Maki answered that they are the same company that installed the original system. Zimmer asked if they install it or if we do. Maki stated that it will be installed by the Public Works Department. He stated that they could probably nurse the one functional pump along well enough to keep in compliance with Minnesota Department of Health standards, but stressed that without a functional pump, our water is not disinfected. Connie Maki asked if the Council was ever made aware that the first pump was not working. No members of the current Council were aware of the situation. A motion was made by Salmi and seconded by Zimmer to purchase the pump immediately, MCU.

The last item on the special meeting agenda was specifications for a new fire truck. The Fire Department had provided copies of the specifications for the new truck to the Council. Salmi had a few questions regarding type and size of engine, water capacity, and type of brakes which were answered by Fire Chief Ron Root. Root informed the Council that this truck would have equipment for foaming which is not on any of the other fire trucks. This new foaming equipment will take one less man to operate than doing it by hand as the Fire Department does now. Anne Collins asked how this new truck was being paid for and Root explained that most of the funds needed will come from the Fire Department’s investment fund and they will also be taking out a $30,000 certificate of indebtedness. He stated that there would actually be enough money in the investment fund to cover the cost of the truck, however the Fire Department does not want to totally empty the account in case money is needed for repairs on other engines. The Council felt this was good planning on the part of the Fire Department. A motion was made by Lexvold and seconded by Pifher to approve the specifications for the new fire truck and to call for bids on it, MCU.

Mayor Tendrup adjourned the special meeting at 5:35 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.