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

City of Bigfork

Public Hearing and Regular Meeting September 27, 2005

Members Present: Mayor Amy Tendrup, Amy Pifher, Richard Salmi, Jean Lexvold and Bob Zimmer Absent: None Also Present: City Engineer Julie Kennedy, Steve Gilbertson, Robin Custer, Gene Collins, Nathan Hale, Robert N. Johnson, Chet Cook, Dave Waters, Mark Jackson, Connie & Public Works Superintendent Mark Maki, Police Chief Jon Babcock, Mike Bakke, Dave Schminkey, Eileen Schmitz, and Patricia E. Verlo

Mayor Tendrup called the public hearing to order at 7:00 p.m. and stated that the hearing was being held to hear comments on the development of a Tax Increment Financing (TIF) District for the Scenic Estates housing project by Legacy Development.

Salmi asked what the length of the TIF district would be and Steve Gilbertson of Legacy Development stated it would be between 18 and 25 years depending on how the numbers in the development agreement come out. Salmi asked when the City would be taking over the infrastructure. Gilbertson answered that one year after completion is a typical timeframe for municipal takeover. Salmi asked if they would be directionally boring the water and sewer lines and Gilbertson and Kennedy answered that they would. Tendrup reviewed that nothing has changed since the final plat was approved by the Planning Commission and the Council. Gilbertson gave a brief overview of his project for the benefit of those in the audience who might be unfamiliar with the issue. Salmi asked what the houses would sell for and Gilbertson answered they would be in the range of $200,000 - $225,000. Waters asked if there was any property in the area that belonged to the City and asked why the City would maintain waterlines under property they didn’t own. Gilbertson explained that there would be utility easements just as there are in the rest of the City for water and sewer lines. Salmi asked if the property could be taxed for projects such as a new water tower. Kennedy answered that purchasers of the lots will be residents of the City and they can be assessed for projects and taxed just as other residents are. Zimmer asked if Gilbertson had any commitments on housing sales yet. Gilbertson answered that they are not able to make any sales until the TIF is in place but he is confident there will be a market.

There being no further questions or comments, Tendrup closed the public hearing at 7:10 p.m. and opened the regular meeting.

A motion was made by Zimmer and seconded by Pifher to pass resolution 09-27-2005: Establishing TIF, motion carried unanimously (MCU). A copy of this resolution is available at the City Clerk’s Office.

OLD BUSINESS:

Julie Kennedy: Kennedy provided updates on the construction projects currently taking place in the City. The Ottum Avenue sewer project has been completed and the area will be paved within three weeks. Salmi asked many questions about the specifics of the project, types of pipe and connections used, etc, and Kennedy and Maki answered them. Kennedy and Maki reported that there have been a few surprises on the Golf Course Lane water/sewer project. The plans on the existing infrastructure were found to be incorrect and this is causing some setbacks. Valves and pipes were not in the locations that they were shown on the plans, and some were different sizes than the plans showed. Kennedy stated that the only way to avoid these types of surprises would be to do exploratory excavation prior to the start of the project. In all, there will be about $6,000 of additional costs to the project due to these issues. Kennedy commended Maki for being on-site to help with the project and to keep things running smoothly. She stated that it could not have been done without him and thanked him for all his help and extra hours worked on the project. The sewer portion of the project has been completed and all houses are reconnected to sewer at this time. The water portion will be competed by the end of the day tomorrow and the road will be paved within three weeks, at the same time as Ottum Avenue. Maki reported that he has already seen a reduction in pump run times due to the projects. Zimmer questioned if there would be accurate plans and drawings of this project for future use and Maki answered that he was making sure of that. Salmi asked what the total cost of the project was and Kennedy reviewed that the bid was for$251,656 and approximately $6,000 would be added to that. Salmi asked how much of this was the City’s cost and Kennedy reviewed that Itasca County is contributing about $175,000. The remainder is the City’s responsibility and this money is already in place through the contribution from the hospital and our short-term loan. Salmi stated that he needed this information because people in the City are upset and wondering if the City is paying for all of these construction projects. Tendrup stated that the information was included in previous Council packets and has been in the minutes. Kennedy reminded the Council that Maki would be out of town the first week of October and that they could contact her with any questions or concerns.

NEW BUSINESS:

Personnel Committee Recommendations - Revisions to Personnel Policy: Tendrup reviewed that the Personnel Committee had been appointed by the City Council to deal with all personnel-related issues. The Personnel Committee met and reviewed the City’s personnel policy. They have recommended some revisions to be made. One of the changes that Tendrup would like to see is that a fee for a background check would be paid upon offer of the job to an applicant and their hire would be contingent upon the outcome of the background check. Zimmer had a question regarding employees having the option to obtain health and life insurance through the City at their own expense and wording in this section was edited to clarify that it applies to part-time employees. A motion was made by Zimmer and seconded by Pifher to approve the amendments as presented and amended, motion carried with Salmi opposing.

Amendments to the 2005 Budget: Storlie presented the proposed amendments to the 2005 budget. Some items in the General, Water and Sewer Funds have collected more receipts that originally budgeted for and these amounts should be increased. In order to maintain a balanced budget, the disbursements should be increased by the same dollar amount. Motion by Pifher and seconded by Lexvold to approve the proposed amendments, motion carried with Salmi opposing.

OTHER BUSINESS:

Maki reported that the cracks that were patched on the airport runway are collapsing and he has called the company that did the work and informed them that they will not be paid until they have made the necessary repairs. Salmi reported that none of the cracks were undercut, they were just filled in. Maki explained that we don’t have the funds for complete cutting and repair right now and the filling is just a temporary fix for this year. Maki will be working with Tendrup and Airport Manager Loren Hovila to complete and submit a Capital Improvement Project (CIP) Plan to the State which will qualify us for State funds for larger projects such as more permanent repairs to the runway. Salmi was very concerned about this and Maki explained that it is understood that this is a safety issue and we are doing everything we can at this point. Salmi felt it should have been repaired a long time ago. Tendrup stated that might be true, however nothing can be done about it at this point. She reiterated that we do not have the money at this time to do major repairs and we are doing what we can to make is usable until such time as we do have the money. Salmi felt it was at the point that if it is not fixed right away it should be shut down. It was questioned if an inspection had been done. Maki reported that a State inspector had been up just this week and Hovila had talked with him and nothing was said about the runway. The inspector did mention that some brushing needed to be done in the near future. Salmi felt the inspector should be contacted about the runway. The Council directed Maki to contact the inspector and make sure our runway was in usable condition.

Maki reported that the MPCA will be here at the end of October for their annual inspection and we will be showing them the improvements that we’ve made. The first major slug of enzymes has been added to the ponds. Maki began the second discharge started this afternoon and will begin transferring from the #1 pond to the #2 pond soon. This will transfer the enzymes to the #2 pond and Maki will slug the #1 pond again. The MPCA will look favorably on these actions.

Gene Collins stated that he had received a water bill a few months ago for $91.00. He has never used this much water and he paid the usual charge of $26.25. There was construction taking place at his home during that month. Collins reported that the meter had been removed to install siding and then put back on. It is possible that the meter reading was jostled when it was removed and it was the determination of the Council that the reading was likely in error. A motion was made by Pifher to adjust the water and sewer bill according to Collins’s normal usage, motion seconded by Zimmer, MCU.

Chet Cook reported that there has been late night traffic in the cemetery again and gates are needed. Maki reported that the gates are constructed and ready to go up as soon as locates are received from Gopher State One Call.

There being no other business, Mayor Tendrup adjourned the meeting at 7:53 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.