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

City of Bigfork

Regular Meeting and Work Session October 12th, 2004

Members Present: Mayor Lonnie Kacon, Jean Lexvold, and Amy Tendrup Absent: Steve Grover Also Present: Gary W. Schwersinski, John Rajala, Julie Kennedy, Tarry Edington, Mark & Connie Maki, Joyce Holsman, and Marilyn David

Mayor Kacon called the work session to order at 6:30 p.m.

Work Session: John Rajala and Tarry Edington were present to address the Council regarding the Itasca Economic Development Council of the Itasca Development Corporation’s (IDC) Jobs 2020, of which they are both members. They are looking for input on the draft vision statement for the Itasca area. Rajala first reviewed some of the challenges that are currently facing us here in the Itasca area. Itasca County ranks only 69th out of the 87 Minnesota counties in terms of quality of life. Issues that factor into this ranking include stability, work in neighborhood, work within county, short commutes, transit availability, young adults, racial diversity, poverty, unemployment, top-level jobs, income, home value, house affordability, property taxes, new housing units, big houses, homeowner rate, high school grads, college grads, and graduate degrees. Rajala touched on the fact that Itasca County has fewer young families and school enrollment has dropped 11.6% in five years. The Itasca Economic Development Council believes this is directly related to not having jobs available for those young people who wish to remain in the area. Itasca County has a higher poverty rate than the rest of Minnesota. Another important statistic is the eligibility for free or reduced school lunches. This statistic is directly related to school performance, with those students who are eligible for free and reduced meals having lower reading basic skills test scores than those who are not eligible. The final issue brought up was the aging population. In 1980, 12% of our population was 65 and over, while in 2002, 17% were in that age bracket. IDC Jobs 2020 is focused on creating a new future, creating a shared vision for that future, improving our quality of life through cooperation, alignment, collaboration and action. The strengths on which we can build include being Minnesota’s forest products centers, having world-class taconite resources, many high quality lakes in our region, a growing retail trade sector, growing segment of second-home owners, three health care centers, a community college, a performing arts center, schools that consistently outperform state and national standardized test averages, 670 acres of JOBZ zones, and support from private and public sector leaders. The mission of IDC/Jobs 2020 is to help create quality jobs. This is done through economic development, community development and alignment. Economic development is accomplished through the Small Business Development Center, Itasca Technology Exchange, Grow Itasca and JOBZ zones. Community development focuses on forestry related issues, broadband needs, tourism marketing, workforce development and infrastructure. Alignment refers to using the Itasca Economic Development Council as a venue for economic development policy discussions and to encourage public, non-profit and private sectors to work together. There are currently 156 volunteers serving on 10 different self-directed action teams with topics including advanced telecommunications technology, air service, Blandin Paper retention/expansion, early childhood initiative, economic development, Grow Itasca, health care, lakes management, tourism, and work force skills. Rajala next read the draft vision statement. It reads, “The Itasca area is the desired place to live, work and succeed. Everyone has access to lifelong educational opportunities, advanced technology and quality cultural, recreational and health care facilities. Healthy families are our foundation. Inclusion, respect and diversity are our strengths and all ages feel safe and secure. All people have access to quality employment and no one lives in poverty. Our economy supports the environmental quality and management of natural resources that best provide for a sustainable future. Good leadership and volunteerism for the common good is encouraged and embraced. Strong partnerships between local governments and private sectors promote a strong and diversified local economy”. Rajala asked for the Council’s input on this statement. Kacon suggested that perhaps the issue of housing should be more specifically addressed in the statement. The Council otherwise supported the vision statement. Edington asked that the Council designate a member of the community to review the MnPRO website and keep our community profile updated. He also stated that the membership in the action teams was not exclusive and anyone interested in joining any of the ten teams is encouraged to do so. Zimmer asked if someone from IDC could contact Schwartz Excavating regarding their interest in participating in the JOBZ program. Rajala will ask Rick Utech to get in touch with them. Rajala and Edington thanked the Council for their time and left the meeting.

Mayor Kacon called the regular meeting to order at 7:10 p.m.

Consent Agenda Motion by Zimmer, seconded by Lexvold to approve the consent agenda as follows: #1- approval of the minutes of the September 9th regular City Council meeting #2- no police report available for September 2004 #3- approval of the library report for September 2004 of 120 books checked out and 24 readers using the library #4- approval of the September 2004 budget report #5- approval of the Public Works Department report for September 8, 2004 through October 11, 2004, report is attached to the minutes as Appendix B #6- approval of the claims for payment in the amount of $54,770.52, including the September 15th and 30th payrolls and $1,715.72 for new laptop computer form Out of the Blue as previously approved. Motion Carried Unanimously, (MCU).

OLD BUSINESS:

Engineering Updates: Julie Kennedy of Short Elliot Hendrickson addressed the Council regarding current engineering issues. She has talked with Floyd Hennagir of the Bigfork Alumni group about the City and tax forfeit properties bordering the school property. They are going through the process of wetland delineation and will know more after a meeting with SWCD on October 27. Kennedy is working with the hospital on the design of their new parking lot. They plan to contain their drainage on their own property rather than directing it down the road onto the church property. The hospital desires to buy additional property from the church. They also desire to get the forcemain that currently runs through their property moved to a property line. Kennedy plans to include a new road to the sewer ponds and the moving of this forcemain in the comprehensive city plan that is being prepared so that it can be looked at, along with other projects, for grant money. Kennedy has met with Brian Rajala regarding the Peloquin Property. He is willing to hear anyone’s proposed plans for development of the property, however he has no interest in developing it himself. Another issue with this property is getting the Rajala house, as well as the City house on the opposite side of the street, connected to compliant sanitary systems. Kennedy will be putting together options for this project. Kennedy stated that she met with Kacon, Maki and Storlie last week to start work on the comprehensive plan. She is looking at applying for a short-term, low interest loan in order to get these small projects completed. This money could also be used to put together funding applications for the larger projects. A rate increase could be used to pay for this type of loan and the increase would also serve to better qualify the City for certain grant cycles. Zimmer questioned the status of the culvert on Division Avenue. The City and the property owners along the road have made contact with County Commission Catherine McLynn requesting that this be fixed as soon as possible. Kacon stated that it had been suggested that the County may turn this road over to the City. Kennedy will contact the County Engineer in regard to this. Kennedy supplied four resolutions that needed to be passed regarding the Cedar Street water and sewer projects. Motion by Tendrup, seconded by Zimmer to pass Resolution 10-12-2004 (1): resolution declaring cost to be assessed and ordering preparation of proposed assessment (sewer), MCU. Motion by Zimmer, seconded by Lexvold to pass Resolution 10-12-2004 (2): resolution for hearing on proposed assessment (sewer), MCU. Motion by Tendrup, seconded by Zimmer to pass Resolution 10-12-2004 (3): resolution declaring cost to be assessed and ordering preparation of proposed assessment (water), MCU. Motion by Tendrup, seconded by Lexvold to pass Resolution 10-12-2004 (4): resolution for hearing on proposed assessment (water), MCU. Kennedy clarified that the resolutions call for an interest rate of 7.25 percent, which is 2% higher than the interest rate of the loan. The reason for this is to cover the administrative costs incurred by the City as well as the interest from the time differential between paying the loan and receiving the special assessment payments. Kennedy’s final item was a plugged sewer service line for the Wanner residence on 2nd Avenue. This particular service line runs from the house across other private property and a public alleyway, and then connects with another service line prior to reaching the manhole on Huskie Boulevard. This service line should be abandoned and run east to the right of way and then north to the manhole on the 2nd Avenue. Maki has been looking into who will be responsible for the cost of moving this line. Motion by Lexvold, seconded by Zimmer to direct Kennedy to contact City Attorney Andy Shaw for an opinion on this, MCU.

At this time, Kacon moved two items relevant to Public Works Superintendent Mark Maki to the top of the agenda as Maki had to leave. The first item was a bid from Gordy Kinn at The Shop for snow removal. The bid was for $95.00 per hour and provided equipment and operator for snow removal from various City properties. Motion by Zimmer, seconded by Lexvold to accept this bid, MCU. Maki asked for permission to complete the work of pumping and filling in the septic tank on the Cedar Street lot. This must be done before the lots can be sold. Motion by Lexvold, seconded by Tendrup to allow Maki to do so, MCU. The old curb stops will be removed in the spring. Kacon stated that two bids were received for the red public works truck. The bids were opened and motion was made by Tendrup, seconded by Lexvold to accept the bid from Pete Walsh for $2,905.00, MCU.

Timber Contract: The contract for the sale of timber on City properties was tabled until more information could be obtained.

NEW BUSINESS:

Land Use Permits: Three land use permits application were submitted to the City Council. The first application was from Betty Vail for re-roofing of the back half of her home. The second application was from Luke & Shari Youngkin for new basement walls. The third application was from Tim & Anne Collins for a storage building on skids. Motion by Tendrup, seconded by Zimmer to approve all three applications, MCU.

MN Lakeshore Properties Real Estate Contract: Paul Hanson of Minnesota Lakeshore Properties provided a real estate contract for the sale of the City house. This contract is similar to the one used for the sale of the Cedar Street lots. Tendrup questioned if the Council had any stipulations they wanted to place on the sale of this property. There was also discussion as to if the septic would be upgraded before the sale or after and who would be responsible for the cost associated with this. This item was tabled until Paul Hanson can be contacted to discuss these items.

Letter from Shaw & Shaw – Sale of City House: The current tenant of the City house had indicated to both Kacon and Zimmer that the real estate agent would be granted access to the house. The real estate agent called the tenant to set up a time and was told that he could not have access to the property until November 1st. City Attorney Andy Shaw was contacted to see if the City had a right to access to the property. Shaw sent a letter in reply stating that access is necessary to list and show the property. In the absence of a lease agreement, the City would need to notify the tenant of termination of the rental. This would be done by giving an eviction notice prior to October 31st, stating that they must depart the property no later than December 1st. Zimmer asked if we could accept the tenant’s verbal agreement to allow access on November 1st. If that date comes to pass without the tenant cooperating, then an eviction notice could be sent. Kacon explained that if we did that, the eviction notice could not be sent until after November 1st, making January 1st the date that they must be off the property. This costs us another month. Tendrup and Lexvold agreed that a verbal agreement with the tenant was not sufficient. Motion by Lexvold, seconded by Tendrup to send a notice of rental termination as of December 1, 2004 to the current tenant of the City-owned house, motion carried with Zimmer voting “no”.

Employee Hours/Work Schedules – Recommendations from Personnel Committee: As requested at the September 9, 2004 City Council meeting, a personnel committee consisting of Kacon, Tendrup, and Storlie met to review all jobs in the City. They have four different recommendations to present to the Council. Recommendation #1 relates to the part-time public works position. This position has been paid on a salary basis of 30 hours per week average. The actual hours worked have been less than that 30 hour average. In addition, due to new changes to the Fair Labor Standards Act, the League of Minnesota Cities does not recommend that this position be paid on a salary basis. The committee is recommending that the job description for the position be changed to reflect that it is an hourly position. Motion by Lexvold, seconded by Zimmer to accept the committee’s recommendation, MCU. Hourly employees of the City are paid for the pay period prior to the pay date, whereas salaried employees are paid up to the day. This means that there will be a one-payday lapse for the part-time public works position. This lapse will be used to compensate the employee for overtime worked and not paid at overtime rates from the last three fiscal years. Recommendation #2 from the committee was to revise all salaried employee job descriptions to clarify which category of exemptions they fall under in relation to the Fair Labor Standards Act. It was recommended that the City Clerk’s job description read that it is exempt under the administration category, the Public Works Superintendent’s job description read that it is a combination executive and administrative exemption, the Liquor Store Manager’s job description read that it is exempt under the executive exemption, and the Police Chief’s job description read that it is exempt under the small police/fire department exemption. Motion by Lexvold, seconded by Zimmer to accept the committee’s recommendations to revise the job descriptions, MCU. Recommendation #3 is in regards to the City Clerk’s maternity leave. The City Council has already agreed to a two-week paid maternity leave for the City Clerk and to allow her to work part time from home after that. The Committee felt it was best to set a firm schedule that can be posted so that customers are aware of the new office hours. The Committee is recommending a new schedule of office hours from 11am to 1pm Monday through Friday with the Clerk working from home for the remainder of the workweek. This new schedule would begin on November 1st to allow time for the Clerk and customers to adjust to the new schedule, and would run until the March 2005 City Council meeting at which time the situation will be reviewed to determine if it is working out for everyone involved. Motion by Tendrup, seconded by Zimmer to accept the committee’s recommendation and allow for this new schedule, MCU. Recommendation #4 from the committee was for various changes and amendments to the City Personnel Policy. There was some discussion regarding employee flex time. Zimmer did not feel it was fair to require that flex time be used during the same quarter in which it is earned. Tendrup explained the reasons behind the recommendation. Motion by Tendrup, seconded by Lexvold to accept the committee’s recommended revisions, MCU. These revisions are attached to the minutes as Appendix B.

Fair Labor Standards Act Training: The League of Minnesota Cities is offering a training session on the new provisions of the Fair Labor Standards Act on November 4, 2004 in Grand Rapids. The cost of this training is $20.00. Motion by Lexvold, seconded by Tendrup to allow Storlie to attend this training, MCU.

OTHER BUSINESS:

Motion by Zimmer, seconded by Tendrup to declare Steve Grover’s council seat vacant pending verification of absenteeism regulations/laws by the City Clerk, MCU.

Zimmer wanted it stated that the results of the Liquor Store Survey done by the Liquor Store Commission are available for public viewing at the City Clerk’s office during regular business hours. The results will also be available at the November 17th public hearing.

There being no further business, Mayor Kacon adjourned the meeting at 9:05 p.m. and announced that a closed meeting would be held immediately for a performance review for bartender Marilyn David.

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

Public Works Department Report September 8, 2004 – October 11, 2004

§ Mow, weed eat – 46 man hours § Sweep streets/intersection – 6 hours § Install 2 water meters (1 new, 1 replacement) § Repair vent pipes #1 & 3 wells, bacteria test with MN Dept of Health § Picnic table repair & paint § Tool rack for white truck § Pick up white truck from Fargo, dump bed installed § 2 samples for wastewater to NTS, Virginia § flow test hydrants for insurance at Mill § prepare hydrants for winter pump out and winterize § remove downed tree at cemetery § air pump at airport returned, warranty item § meter readings for month § clean out shop, materials to cold storage § transfer & discharge of pond #2 § patch streets & lower valve box, Ash Street § check on water backing into basement § attend school for ponds, Red Lake Falls § attend League school, Grand Rapids § work on flags § met with SEH and Jeff M. on single septic pump stations § furnace cleaning, City Hall (plugged up) § check customer complaint of sewer line plug, 2nd Street § 6 locates for construction § meet with SEH, Mayor and Clerk on future issues, ponds – access road, capacity, future growth, future repair plans

Appendix B

Proposed Revisions to the City Personnel Policy

§ Revise the section titled “COMPENSATION” to read: Pay Date: All regular City employees shall be paid twice monthly, on the 15th and the last day of the month. If the 15th or the last day of the month falls on a weekend or holiday, the pay date shall be the last business day prior to the 15th or the last day of the month. Paychecks issued to hourly employees will cover compensation due for time worked during the pay period previous to the current pay period (i.e. paychecks issued on the 30th of June would be for time worked between June 1st and June 15th). Paychecks issued to salaried employees will cover compensation due for time worked during the current pay period that includes the pay date (i.e. paychecks issued on the 30th of June would be for time worked between June 15th and June 30th). Flex Time: Any hours above 40 per week accumulated by salaried employees shall be compensated for by allowing the employee time off in an amount equal to the number of hours of overtime worked. Salaried employees will be allowed to accumulate up to a maximum of 40 hours of flex time. Flex time must be used during the same quarter in which it is earned. At the beginning of each quarter (January 1st, April 1st, July 1st, and September 1st) any unused flex time will be lost and accumulation will start again from zero. Accumulated flex time will not be paid out at termination of employment. Overtime: Non-salaried employees who exceed 40 hours in any given workweek shall be paid overtime for any hours above 40 per week at the rate of one- and one-half times their regular rate of pay. In no case shall time granted for holidays, sick leave, or vacation count towards the 40-hour threshold for flex time or overtime. Paychecks will only be given to the employee whose name is on the check unless written permission is submitted to the City Clerk to have another person pick up the check.

§ Revise the section titled “HOLIDAYS” to read: The following nine (9) holidays shall be granted with pay to the City Clerk, Public Works Superintendent, Liquor Store Manager and Police Chief… § Add the following to the section titled “SICK LEAVE”: No more than three days of sick leave may be used in a row without prior notification to the employee’s supervisor or the City Council. Accumulated sick leave will not be paid out at termination. § Remove the sentence from the section titled “SICK LEAVE” that reads: Sick leave shall not be claimed in periods of less than one-half day.