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

City of Bigfork

Regular Meeting November 14, 2006

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

Absent: none

Also Present: Volunteer Police Officer Clint Sova, Police Chief Jon Babcock, Warren & Caroline Welch, Gene Collins, Boone Danielson, Public Works Superintendent Chuck Almhjeld, Julie Aakhus, City Engineer Julie Kennedy, Robert Johnson, and Carol Pifher

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

Public Forum: Tendrup asked any member of the audience wishing to address the Council to do so at this time. Gene Collins stated that the VFW would like to use the City Hall basement on December 2nd for a party for Orbin Holt. They would also like permission to install a plaque above the newly remodeled kitchen naming it "Holt's Kitchen". Tendrup added this item to the agenda under other business.

Tendrup called for any other changes to the agenda. Motion by Kacon, seconded by Pifher to approve the agenda as amended, Motion Carried Unanimously (MCU).

Salmi requested that the claims be removed from the consent agenda for further discussion.

Consent Agenda #1- approval of the minutes of the October 10th regular City Council meeting

#2- approval of the Police Report for October 2006

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

#4- approval of the Budget Report for October 2006

#5- approval of the Public Works Department report for October 2006

#6- approval of Ordinance #129, amending Title XV

#7- approval of the transfer of $3,011.57 from the Bigfork Wilderness Celebration savings account to the general checking account

#8- approval of the transfer of $433.12 from the Water Fund to the 1997 Bond Fund, $433.13 from the Sewer Fund to the 1997 Bond Fund, and $2,811.38 from the Sewer Fund to the MGAFG 2005 Debt Service Fund as budgeted for in the 2006 budget

#9- removed for further discussion

Copies of documentation relating to any consent agenda item are available at the City Clerk’s office.

Motion by Lexvold to approve the Consent Agenda, seconded by Pifher. (MCU)

Consent Agenda Item #9: Salmi requested clarification on a bill to Honey Bear Septic. Public Works Superintendent Chuck Almhjeld explained it was for clearing of the Logger's Inn sewer line. Salmi stated that line had been giving the City problems for quite some time and it was costing a lot of money to keep fixing it. He felt that Logger's should be annexed into the City or be charged higher water and sewer rates. Motion by Salmi, seconded by Kacon to ask the Planning & Zoning Commission to look into annexing Logger's Inn into the City, MCU. Salmi asked about the claim to George Hauck and Almhjeld explained that was also for a plugged sewer line which was repaired. Hauck will be installing a clean-out so that the line can be videoed and the problem can be identified and solved. Salmi asked for clarification on Short Elliott Hendrickson and Itasca County Highway Engineer bills, which was provided by City Engineer Julie Kennedy and Almhjeld. Motion to approve the claims in the amount of $70,537.23 by Kacon, seconded by Pifher, MCU.

UNFINISHED BUSINESS:

City Engineer’s Report: Kennedy reported that she and Almhjeld had been working with Bergquist on getting their phosphorus levels down and completing the significant industrial user agreement that is required by the Minnesota Pollution Control Agency (MPCA). SEH is holding off on design of the mound system repair until the source of the high phosphorus levels is determined and taken care of. Salmi asked if there was another option besides a mound system. Kennedy stated that there were many different options, however the mound system was the most economical. Salmi was concerned about the State not certifying the system and Kennedy assured him that the MPCA is supporting the mound system. Bergquist had similar concerns about the life expectancy of a mound and the MPCA informed them that a mound will last just as long as a pond system as long as it is designed and operated correctly.

The airport pavement maintenance project has been completed and a resolution needs to be passed authorizing the Mayor and Clerk to execute the grant agreement with the Minnesota Department of Transportation (MnDOT). Salmi asked if the cracks in the area where the airplanes are parked will be repaired. Kennedy explained that they would have been repaired when the runway cracks were done, however the runway cracks had worsened over the summer and took more tar to repair than planned and so the tarmac cracks were left for now. She added that we will look at this next spring with MnDOT and see if we can overlay or if more reconstruction will be needed first. Salmi asked if brushing and removal of trees could be included in a grant. Kennedy reviewed that we do have that on our Capital Improvement Plan for 2007. Salmi asked if it could be done in the spring. Kennedy will look into what the timeframe is for the MnDOT grant process. Motion to pass Resolution 2006-24 by Pifher, seconded by Lexvold, MCU.

Kennedy provided information on the Division Avenue water/sewer project potential refunds. She presented information on the original assessments, payments to date and potential refund amounts. Gene Collins asked what the figure was on his property. Kennedy reported the amount as $5,193. Tendrup felt that even if refunds were given, the project would need to be completed as originally planned at some point and it was going to cost the City either way. Salmi stated that a grant should be applied for to pay for it. Kennedy asked if he knew of any grant that would cover this. He questioned if it could be lumped in with a bigger project and Kennedy agreed this could possibly be done. Salmi suggested tying it into a well #4 project and Kennedy noted we are not yet convinced that well #4 will stay and it makes more sense to tie it to a sewer project anyway. Salmi suggested asking Iron Range Resources (IRR) for money to complete the project. Kennedy reviewed that the City has already applied to IRR for funds for the airport mound system repairs and we do not want to jeopardize that grant application by submitting another one. If IRR increases the public works grant fund and opens it up for applications again, we will certainly apply. Tendrup felt that the City is stuck and will end up with lawsuits if they do not complete the project. She suggested sending letters to those involved to see if they want a refund with the understanding that a new project would result in new assessments, or if they would rather have the project completed at this time as was originally planned. Kennedy pointed out that there were some individuals that received water and sewer service as promised and paid their assessments. This group does not want to see refunds given because the cost would come out of their tax dollars. She suggested holding a neighborhood meeting on the issue to gather everyone's input. Motion by Pifher seconded by Lexvold to have Julie look into a grant for this project, MCU. Motion to invite parties involved to a neighborhood meeting to be held at 6pm on Tuesday, December 12, 2006 by Pifher, seconded by Lexvold, MCU. Tendrup reviewed that the Council had already determined that Collins was due a refund of 1/2 of the original assessment on his property due to the fact that he was assessed for two connections rather than one.

Northwest Gas Franchise was tabled due to the fact that the representative was not present and there was no need for action at this time. City Attorney Andy Shaw has advised that a franchise agreement is not needed until such time as the company requests permission to do work in the right-of-ways. Kennedy explained that this will likely take place in the spring.

Compost Site: Tendrup reviewed that the issue of a community compost site had been discussed, but never been acted upon. Tendrup asked if the city property located at the north end of the City on State Highway 38 would be suitable for a compost site. Almhjeld will look into this. On a related not, Tendrup stated that there is still debris on the well #4 site that needs to be taken care of.

Cedar Street Lots: The lots have not been advertised for sale since August. Salmi reported that Gene Rajala would be interested in clearing the lots to make them more saleable. Kacon noted the need to get County Soil & Water on board before doing any clearing. Tendrup and Pifher did not feel that clearing the lots would make them any more desirable. Gene Collins stated the cost was too high when considering the cost of the assessment as well. Kacon noted that it is riverfront property and he felt it was not reaching the people that would be interested in it. Pifher suggested advertising farther out than just the local papers. Tendrup agreed that we need to expand our advertising base. Motion by Pifher to advertise farther out, in the same papers as the City house was advertised for sale in, with bids to be due by the second Monday in January, seconded by Lexvold, MCU.

Liquor Store Sale Funds: Storlie provided information on the funds from the sale of the liquor store. She noted that this had been discussed a few months prior, but had never been acted upon. After covering shortfalls in the 2005 general fund balance, transferring the monies pledged for the 2006 budget, and paying off the Bobcat, there is $8,387 left. It was recommended that $3,449.69 be transferred to the liquor fund in the general checking account to zero out the negative balance in that fund and to transfer the remainder of the proceeds to an investment fund. Motion by Pifher to accept the recommendations, seconded by Kacon, MCU.

NEW BUSINESS:

Canvass of 2006 Election Results: Storlie read the following results of the 2006 General Election. For the office of Mayor, Amy Tendrup received 85 votes and Richard Salmi received 60 votes. Tendrup is the winner of this office. For the four-year Council seat, Jean Lexvold received 78 votes and David Waters received 59 votes. Lexvold is the winner of this office. For the two two-year Council seats, Eugene Rajala received 82 votes, Amy Pifher received 68 votes, Linda Koppelmann received 70 votes and Gene Collins received 56 votes. Rajala and Koppelmann are the winners of these two offices. On the Sunday Liquor ballot question, 77 voted yes and 66 voted no. Sunday liquor sales will be allowed in the City of Bigfork. Motion by Lexvold, seconded by Pifher to certify the results of the 2006 General Election, MCU.

Personnel Committee Recommendations: The first recommendation from the Personnel Committee was in regards to Police Chief Jon Babcock's retirement proposal. Motion by Pifher to accept the proposal as presented, with the retroactive pay increase to $21.93 per hour from January 1, 2006, with one change, being that Babcock be responsible for 10% of his health insurance premium and 100% of the premium for family coverage, seconded by Kacon. Salmi asked what the police coverage needs are for the City. Tendrup noted that the Personnel Committee had reviewed this and is recommending consideration of hiring a part-time officer. Salmi stated that the problem with giving Babcock full medical is that the City would have to do the same for any part-time police officer. Tendrup stated that the City would not be obligated to offer health insurance coverage to part-time officers. Salmi did not feel the City would be getting the police protection that it needs. Tendrup stated that Babcock's proposal is to respond to calls in addition to working scheduled time at the school as the Liaison Officer. Babcock asked for clarification on Pifher's motion. He stated that his proposal was to provide the service outlined for the wage and with the benefits stated and he was not willing to contribute to the health insurance premium but expected that to be part of the agreement. Pifher pointed out that it is typical for employees to pay a portion of their health insurance. Tendrup did not feel the City could require one employee to pay a portion of insurance and not require the other employees to do the same. Babcock did not feel it was fair to say that the new position would be a simple part-time position. He still plans on providing substantial police coverage for the City, as well as continuing to file all required reports with the State, scheduling police coverage hours, and attending meetings. Babcock reminded the Council that this plan will save the City a substantial amount of money. Tendrup reviewed that the Personnel Committee had received some vital information from Itasca County Sheriff Pat Medure. Tendrup did not feel it was right to go without law enforcement. Salmi wanted a full-time officer. Tendrup noted it was not in the budget to increase the wage enough to get a new full-time police chief. Babcock added that our young volunteer officer is interested in working with the City. Salmi asked about the $21.93 per hour and why it had increased from the original amount of $20.00 per hour. Babcock stated he had never asked for $20.00. That was a miscommunication somewhere in the process. Babcock had asked for $21.93 because that is what the newest city employee is making. Babcock restated that he was not willing to accept the conditions of the motion on the table. Tendrup called for a vote on the motion and the motion failed with all opposing except Salmi who abstained. Motion to accept Babcock's proposal as written, with the retroactive pay increase of $21.93 per hour as of January 1, 2006, by Kacon, seconded by Pifher, motion carried with Salmi opposing.

The Personnel Committee's second recommendation was to hire Joseph Zimmer for the position of Casual Maintenance Laborer, pending acceptable completion of a background check and drug and alcohol testing. The recommendation was accepted in a motion by Kacon, seconded by Pifher, MCU.

Airport Use Proposal: The City received a request to use the airport for a vintage car driving event in June of 2007. Motion by Lexvold to approve this use pending approval by the City's insurance company and airport manager, seconded by Pifher, MCU.

OTHER BUSINESS:

A Sunday liquor license application was received from Bigfork Wilderness Bar. Motion to approve the application by Lexvold, seconded by Pifher, MCU.

A proposal to perform the 2006 audit was received from Miller, McDonald, Inc. Motion to accept the proposal by Pifher, seconded by Lexvold, MCU.

Motion by Lexvold seconded by Pifher to allow the VFW to install a plaque naming the newly remodeled City Hall kitchen as, "Holt's Kitchen", MCU.

Tendrup reviewed that letters had been sent asking for contributions toward the City's portion of the cost of the airport runway repairs. So far Bergquist has contributed $3,700. Kacon will be attending an Itasca County Transportation and Land Management meeting in support of a contribution from the County. Bigfork Valley Hospital has expressed a willingness to contribute if necessary. Bigfork Township was also sent a letter. Tendrup noted that the Planning & Zoning Commission will be working with Bigfork Township on airport as well as beach operation issues.

Babcock stated that he was able to solve the mystery of the missing liquor from the liquor store. He was able to say that a crime had been committed and the City would be getting a portion of the money back.

Babcock requested that a meeting of the Personnel Committee be scheduled to begin the process of hiring a part-time police officer.

Almhjeld addressed the Council stating that $3,000 has been budgeted in 2006 for repairs to one-third of East Ottum Ave. The money had not yet been spent and he requested that it be carried over into 2007 so that two-thirds of the road could be repaired in the spring. The Council agreed that this would be appropriate.

Mayor Tendrup adjourned at 7:25 pm.

Angie Storlie

City Clerk/Treasurer