Koochiching County Board Minutes 5-15-01

Board Minutes

for

May 15, 2001

REGULAR MEETING OF THE KOOCHICHING COUNTY BOARD OF COMMISSIONERS
Held on Tuesday, May 15, 2001; 9:45 a.m.

MEMBERS PRESENT: Commissioners Hanson, McBride, Lepper, Chezick, Pavleck

MEMBERS ABSENT: None

OTHERS ATTENDING: Doug Talley, Jaci Nagle, Ann Scholler, Marty Cody, Richard Lehtinen, Mayor John Bruggeman, Peggy Vigoren, Ed Oerichbauer, Dennis Hummitzsch, via conference call Corey Elmer and Carrie Felber, Doug Grindall, Walt Buller, Marty Gordon, Susan Franko, Mr. and Mrs. Claybundy, Dan Griffith; Reporters Laurel Beager and Roger Jerome

2001/05-29 Motion by McBride, seconded by Lepper to approve the agenda with additions and deletions. Voting yes: Hanson, McBride, Lepper, Chezick, Pavleck. Motion carried.

2001/05-30 Motion by Chezick, seconded by Lepper to add the letter from Voyageurs National Park Superintendent pertaining to the County’s March 17, 2001 snowmobile event to the agenda. Voting yes: Hanson, McBride, Lepper, Chezick, Pavleck. Motion carried.

2001/05-31 Motion by Chezick, seconded by McBride to approve the minutes of the May 8 special meeting. Voting yes: Hanson, McBride, Lepper, Chezick, Pavleck. Motion carried.

000 Board received notice that Maxine Corrin and Molly Gushulak resigned from their positions of home health aide/homemaker bringing the Public Health Department down to eleven aides for the International Falls area and two aides for the Northome area. The Department is interviewing applicants on May 8th.

2001/05-32 Motion by Lepper, seconded by Chezick to approve payment of the Highway bills in the amount of $36,619.72 with payment detail on file in the Highway Department. Voting yes: Hanson, McBride, Lepper, Chezick, Pavleck. Motion carried.

2001/05-33 Motion by Lepper, seconded by McBride to accept the recommendation of the Assessor to grant the following abatements: Russell Stiles for missed homestead credit and Steven and Anna Carlson for farm homestead credit on three parcels. Voting yes: Hanson, McBride, Lepper, Chezick, Pavleck. Motion carried.

2001/05-34 Motion by Chezick, seconded by Lepper to adopt the following resolution for the application of Budget FY 2002 IRRRB funds:

WHEREAS, the County of Koochiching (hereafter the “Applicant”) is a governmental subdivision, organized and operating under the laws of the State of Minnesota; and

WHEREAS, the Applicant has a need for a grant to assist with economic development authorities as permitted under Laws of Minnesota for 1987, Chapter 182 and environmental programs which are allowed funding under MN Statutes 298.17; and

WHEREAS, the Applicant is submitting its request for application to the IRRRB for Budget FY 2002 grant funds.

NOW, THEREFORE BE IT RESOLVED, that the Applicant’s organization hereby authorizes and approves making application to the IRRRB for Budget FY 2002 funds to assist in economic development and environmental programs.

BE IT FURTHER RESOLVED, that the Applicant’s Board Chair and County Coordinator are hereby authorized and directed to sign and submit application for the said grant monies and all applicable contracts, documents and agreements associated with the grant or the application for it. Voting yes: Hanson, McBride, Lepper, Chezick, Pavleck. Motion carried.

2001/05-35 Motion by McBride, seconded by Lepper to approve the 2001-2003 Sentence to Serve Contract with the MN Department of Corrections for servicing of two crews with quarterly crew activity reports to be furnished to the Board as part of the agreement. Voting yes: Hanson, McBride, Lepper, Chezick, Pavleck. Motion carried.

2001/05-36 Motion by Chezick, seconded by McBride to approve a two-year cleaning contract with the Occupational Development Center as recommended by the Complex Superintendent. Voting yes: Hanson, McBride, Lepper, Chezick, Pavleck. Motion carried.

000 The Board received notice that the Joint Cooperation Agreement for the Northeast Minnesota HOME Consortium will automatically be renewed for a three-year period covering 2002-2004 unless they take action to terminate the agreement and submit the action in writing to the Northeast Minnesota HOME Consortium.

2001/05-37 Motion by Lepper, seconded by Chezick requesting a written report on Northeast Minnesota Home Consortium activities in Koochiching County before giving consideration to the renewal of the Agreement. Voting yes: Hanson, McBride, Lepper, Chezick, Pavleck. Motion carried.

000 The Board received a letter from School District 361 supporting continued research of a subordinate taxing district to provide funding and management of the Backus building, recreation and cultural programs and the swimming pool. Commissioner Chezick again reviewed his proposal to form a subordinate district in a timeframe allowing for a 2002 levy. He provided the Board rough cost estimates for each of the items proposed for the taxing district. Commissioner Lepper asked if the school was seeking a bond referendum for education improvement and if so, how does this taxing district affect their plan? He is more concerned with the education of our kids than saving recreational programs and buildings. Due to lack of time, the Board Chair deferred the matter to the afternoon where more time would be allowed for discussion.

2001/05-38 Motion by Pavleck, seconded by Chezick approving a service contract extension with Douglas Talley from July 1 through December 31, 2001 at a rate of $50.00 per hour for planning and implementing an information systems structure for the County. Voting yes: Hanson, McBride, Lepper, Chezick, Pavleck. Motion carried.

2001/05-39 Motion by Pavleck, seconded by Lepper adopting the following resolution authorizing the County Board Chair to enter into a contract for GIS services provided by Arrowhead Regional Development Commission (ARDC) to develop parcel-based GIS capability for land use, natural resource and fiscal data management:

WHEREAS, Koochiching County has requested the services of the Arrowhead Regional Development Commission (ARDC) to provide GIS and mapping for Koochiching County, and

WHEREAS, ARDC is qualified to perform the services requested; and

WHEREAS, Koochiching County is awaiting passage of a Legislative Commission on Minnesota Resources grant for $70,000.

NOW, THEREFORE BE IT RESOLVED, that the Koochiching County Board authorizes its Chair to enter into a contract providing GIS services with Arrowhead Regional Development Commission (ARDC), in the amount of $60,102.48, contingent on the approval of the LCMR grant by the Governor of the State of Minnesota and review and approval of the contract by the County Attorney. Voting yes: Hanson, McBride, Lepper, Chezick, Pavleck. Motion carried.

000 Members of the Ranier City Council and their City Clerk presented the Board a resolution to partner with the City of Ranier for waterline repair in areas outside the City of Ranier, namely French Addition and Jamison Addition. The system is forty years old and pipes are in need of replacement. Today they are looking for the County’s support to seek grant funds to fix this part of the system. The County’s help is needed because the City of Ranier can not apply for grant funds outside their jurisdiction. Per the City Clerk, the first step is to get on the funding priority list, which has a deadline of May 26th. She stated that the maintenance escrow account has expended $56,000 in this area alone fixing pipes and they were informed that the pressure is kept lower than normal due to the fear that the pipes would burst if full pressure were applied. In research of the 1990 census data, the medium income for the area in question is $17,000, which is well below the standard for grant eligibility. If we get on the priority list, the next step would be to conduct a survey to get detail for the actual grant application. If it looks like we will get the funding, then an engineer study will be needed. The City is also requesting funding up to $5,000 from the County to support surveying and engineering efforts. The City considered using maintenance escrow funds but felt the monies were needed for continued maintenance and repairs. Commissioner Chezick stated that past escrow monies were utilized by the City of Ranier instead of going into the account for repairs but that this was a past issue and nothing could be done about it now. Commissioner Pavleck stated that the bottom line is nothing can be done to replace those lines without the County’s help.

2001/05-40 Motion by Pavleck, seconded by Lepper to adopt a resolution partnering with the City of Ranier in the effort to obtain available grant monies for the purpose of watermain replacement and water looping in the unorganized areas of the County commonly known as French Addition and Jamison Addition:

WHEREAS, at the request of the residents of the above-mentioned unorganized areas of Koochiching County, the City of Ranier Water Department assumed the administration and maintenance of the water line system located in said areas at its inception approximately forty years ago.

WHEREAS, due to the numerous water line breaks within said water line system in recent years, the water line system has been determined to be old, leaking, brittle, crumbling and approaching the end of its useful life.

WHEREAS, the City of Ranier and the County of Koochiching entered in to an agreement wherein an escrow fund was established in order to absorb the cost of the numerous water line breaks occurring in said water line system, and wherein the County of Koochiching would bear some of the cost of water line repair should the cost go above the balance of the escrow fund.

WHEREAS, it has been determined that the rate of deterioration of said water line system has advanced to the point where the money contributed to the escrow fund by residents located in said areas will soon be depleted and therefore said residents will be placed in a state of extreme economic hardship.

WHEREAS, the City of Ranier wishes to apply for grant monies for the replacement of said deteriorating water mains and for water main looping in areas that contain dead end water lines, but does not have legal authority to apply for grant monies for areas located outside of its corporate city limits.

WHEREAS, the County of Koochiching does have legal authority to apply for said grant monies as the above-mentioned areas are located within the unorganized boundaries of the County of Koochiching.

WHEREAS, the City of Ranier has determined the cost of the engineering study necessary for the grant applications to be $5,000.00.

NOW THEREFORE, BE IT RESOLVED that the County of Koochiching partner with the City of Ranier in its efforts to procure grant monies for the purpose of water main replacement and water main looping on parts of the Ranier Water Line located in the unorganized areas of Koochiching County commonly known as French Addition and Jamison Addition and that the County of Koochiching agrees to grant the City of Ranier the sum of $5,000.00 from their 2001 Administration Project Budget for survey and engineering costs necessary to complete grant applications. Voting yes: Hanson, McBride, Lepper, Chezick, Pavleck. Motion carried.

2001/05-41 Motion by McBride, seconded by Lepper to authorize the Board Chair’s signature to the General Notice to Control Noxious Weeds. Voting yes: Hanson, McBride, Lepper, Chezick, Pavleck. Motion carried.

000 HUD is allowing local governments to purchase HUD-owned homes for $1 each to create housing for families in need and to benefit neighborhoods, through its Dollar Homes Initiative. In conversation with the person from HUD, we understood the County could use the property for other purposes like establishment of a park. The County was notified of this offer last Wednesday, which was the last day of their offer deadline but stated if the County was interested, would consider our bid. The Land Commissioner contacted KOOTASCA who stated they had no money to fix the house for resale and stated that this would not be an appropriate use of the Trust Fund. Board members were not interested in getting into the business of refurbishing homes for resale.

2001/05-42 Motion by Lepper, seconded by Chezick to table action on the option to bid $1.00 for a HUD-owned home. Voting yes: Hanson, McBride, Lepper, Chezick, Pavleck. Motion carried.

000 Corey Elmer and Carrie Felber of Flaherty and Hood held a conference call with the County Board to update them on specific legislative activities. Mr. Elmer stated that this was the last week of the session and it must adjourn next Monday at midnight. It is apparent that they are far behind in their work and we will likely see a session this summer. With regards to the attached machinery aid it is preserved in both the House and Senate tax bills and he does not feel this will be an end deal issue with the Governor. PILT is in the Senate bill but not the House bill and something may still result with this in conference committee. BWSR funding for road projects is addressed two ways. First there is a very small allocation in the environmental finance bill. Secondly both Senate and House tax bills contain provisions where privately owned wetlands acquired by MNDot are eligible for PILOT. The difference in the provisions is money and will be decided in conference committee. Corey noted that when only one side has a proposal there is more of a risk of that item not making it. Out of Home Placement aid to counties for non-federal share of expenditures is in both the Senate and House bills with the difference being the House provides 30% and the Senate provides 50%. Based on the House plan, the County would receive $156,000. Levy limit and reverse referendum are in the House bill but not the Senate bill. This is because the House is doing major tax reform and in doing so wants to keep a lid on local government spending. They are proposing levy limits based on 1999 certified levies, not the 2000 levy, because there was no levy limit in 2000 and local governments increased levies. This issue will be discussed in conference committee but at this point it is being seen as two for and one against as the House and Governor want tax reform and the Senate wants status quo. He feels the levy limit will pass. Also being proposed is the reverse referendum for levy increases, which applies to counties and cities with populations over 2,500. This applies if proposed certified levies exceed the certified levies in the previous year. The Coordinator asked what percent of a levy increase is subject to the reverse referendum but the figure was not known at this time. With regards to the LCMR grant for the GIS system, the House and Senate have this in their bills but the Governor may veto it anyway as he made it clear he did not want nine projects funded with LCMR funds and this was one of them. With regards to Biomass bills, the sales tax exemption was extended to 2003 and both bodies have approved the biomass purchase mandate. With regards to cold weather testing, bills have been introduced but have had no hearings. This is a timing issue and more than likely will be deferred to the 2002 bonding session. With regards to the Bear Center, $200,000 was provided to study the project further and too will be introduced for construction funds in the 2002 bonding session. Currently under the House plan, the County receives about $55,000 more in state aids than under current law. The Senate has not produced a worksheet to date to show the impact of their tax funding proposal on local units of government. The Governor made it clear he would not call them back into session, however, if the Senate and House do not approve spending bills before adjournment, there will be no money come July 1, 2001. The Board agreed to set up another conference call with their lobbyist on Tuesday, May 29th to receive another update.

000 Board Chair called for public comment at 11:30 a.m. No comment was provided.

000 The Highway Foreman reviewed a minimum maintenance proposal to make a portion of UT 297 passable for access to the Claybundy property. Cost is estimated at $31,357 plus cost for purchase of right-of-way. To bring the road to existing county standards the cost is estimated at $46,000 plus engineering and wetland replacement cost. Either proposal would require right-of-way acquisition. In searching County records, UT297 was not vacated. Susan Franko representing property owners adjacent to UT297, presented a letter stating objections to the County upgrading this road for one property owner and stated that unless the intent is to reconstruct the original public road, including the portion through the Claybundy property, taxpayer dollars should not be used. She stated that they had to fix the road when they bought their property as the road was not passable. They also oppose the acquisition of a portion of their land for right of way purposes and reminded the Board that eventually there will be a request for a school bus route. The Highway Engineer stated the UT is maintained to the Indus Cemetery only and agreed the road would be easier to maintain if the entire road were used. Mrs. Franko stated that vacation of this part of the road would deny access to Claybundy. A relative of the Claybundy’s stated that the portion of UT 297 from their property to the Highway has been vacated so does not allow this section of road to be used as an alternative access (also involves other property). Commissioner Pavleck asked if the Highway Foreman’s proposal was minimum maintenance and the answer was yes. The Board agreed that more information was needed. First need to seek a legal opinion on whether this individual has a right to request that the County maintain this portion of road if it is not vacated. Secondly the Board felt they needed to see the road themselves to get a better understanding of the situation. Thirdly vacation records need to be verified as to whether any or all of the road has been vacated.

2001/05-43 Motion by Lepper, seconded by McBride authorizing the Highway Engineer to seek a legal opinion from the County Attorney whether the property owner has a right to request the County to maintain UT 297 if it is not vacated, directing the Coordinator to research and verify vacation records on UT 297 and to schedule a road tour for the Board on May 22nd to visit the site. Item will be placed on the June 5th agenda for further consideration. Voting yes: Hanson, McBride, Lepper, Chezick, Pavleck. Motion carried.

2001/05-44 Motion by Lepper, seconded by Chezick awarding the following low bituminous bids as recommended by the Highway Engineer: SAP 36-624-14, SAP 36-629-10, CP 2001-01 to Ulland Brothers, Inc. Voting yes: Hanson, McBride, Lepper, Chezick, Pavleck. Motion carried.

2001/05-45 Motion by McBride, seconded by Pavleck adopting the following resolution in support of transportation funding:

Whereas, the transportation system remains a key engine of the state's economy, getting people and goods where they need to be;

Whereas, the State of Minnesota is facing increasing congestion and increasing concern on the part of the public regarding the adequacy of the transportation system;

Whereas, businesses rely on roadways and transit services to get employees to work;

Whereas, current funding is not keeping pace with the need;

Now therefore, be it resolved that Koochiching County supports these issues impacting transportation funding:
1. Constitutionally dedicating 100% of the Motor Vehicle Excise Tax to the HUTDF.
2. A county sales tax exemption.
3. Adequate operating funding for Greater Minnesota transit.
4. Adequate operating funding for Metro transit.
5. $11.725 million to replace revenue to the HUTDF from the 2000 tab fee reduction.
6. $10 million to fund local bridge projects.
7. $2.7 million to fund the local wetland mitigation program.
8. Local Road Improvement Program.
Voting yes: Hanson, McBride, Lepper, Chezick, Pavleck. Motion carried.

000 The Board recessed at 12:15 p.m and reconvened at 1:30 p.m.

000 Commissioner Chezick reviewed additional information on his proposal to create a Subordinate Taxing District to service the Backus building, swimming pool and recreational and cultural programs for an area within the School District 361. He stated that his proposal would move to have a levy established for 2002 even though this time line does not allow for all of the questions to be answered. Commissioner Pavleck stated concerns with the huge liability this proposal puts on the County and taxpayers and stated that good tax policy allows time to look at things and get questions answered. To date only the Backus/AB Committee has reviewed this proposal and the Board hasn’t provided their thoughts on resolving community issues or what they would like to see in a taxing district. If the idea is to tax the people who use these facilities and programs, than it doesn’t make sense to use school district boundaries. Finally he stated that other school districts would be looking for this same kind of help. In summary he was not prepared to take the proposal to a public hearing for formation of a taxing district in the short time frame proposed. Commissioner Lepper had concerns with how this taxing district proposal will affect the School District’s efforts to seek a bond referendum to improve their education system as he does not want to hurt this effort. He would rather hold public meetings to get more feedback before considering this option. Commissioner McBride agreed. He does not want to increase taxes unless his constituents approve it. There may be safer ways to provide for these needs. Commissioner Chezick in summary stated that this proposal was a way to take recreational and cultural issues away from the schools and allow them to focus on education. Recreational and cultural issues should be dealt with as community issues. He feels if the district is not established for the 2002 tax year, it will not be supported. Coordinator stated that if the levy limit goes through in the 2001 legislative session, the taxing district proposal is a mute point.

2001/05-46 Motion by Chezick, seconded by McBride that the Koochiching County Board of Commissioners after due consideration find the following:

1. That the decision by the Board of School District 361 to close certain facilities will create a significant decline in the quality of life for persons in this portion of Koochiching County. That this decline in quality of life will affect persons of all ages and interests.
2. That the Backus facility contains the largest auditorium within 100 miles along with a gymnasium. That the second complex subject to closure is a swimming pool that has in the past been used by people of all ages in this area.
3. That decision to cease funding in whole or in part, cultural and recreational programs that were previously available to people of the area will negatively affect the general quality of life.
4. That shifting population within this area of the County requires a new approach to operating and funding certain programs for this area.

Now therefore be it resolved that the Koochiching County Board of Commissioners decide to take under consideration the establishment of a subordinate service district in accordance with Chapter 375B of Minnesota Statute. That the proposed is limited to that area of Koochiching County contained within School District 361. That the subordinate service district shall seek to negotiate the acquisition of some or all of the above mentioned facilities. That the district will operate and fund a broad range of cultural and recreational activities that it does not now operate in this or other areas of the County. That funding will be a combination of tax levy and user fees. That to assist in accomplishing these objectives the County Board will appoint such advisory committees as it deems appropriate. In passage of this resolution, the County Board will proceed with the process of establishing a subordinate taxing district per MN Statute 375B. Voting yes: McBride, Chezick; voting no: Hanson, Lepper, Pavleck. Motion fails.

000 Commissioner Pavleck, serving as Chair to the KEDA, submitted their request for $100,000 appropriation from the County (same request to the City of International Falls)
so that the economic development authority has project money to negotiate developer agreements. They currently have a development project but nothing to offer as an incentive, as is the case with any future project. Since the cold weather testing funding was delayed until the 2002 bonding session, $100,000 of the $300,000 set aside for this project could be reallocated. Commissioner Pavleck stated his concern of having the County commit funding without having knowledge of the projects themselves, however, there is confidentiality needed in dealing with business developers.

2001/05-47 Motion by Lepper, seconded by McBride transferring $100,000 to the Koochiching Development Authority from the 2001 Economic Development Budget as an appropriate to the KEDA for securing business development for the County, contingent on an equal match by the City of International Falls, and further that a committee meeting be scheduled of the Board to discuss their long-term economic development structure and support. Voting yes: Hanson, McBride, Lepper, Chezick, Pavleck. Motion carried.

000 The Board received a letter from VNP Superintendent West stating that they would not seek action against the County for the County Challenge Snowmobile Event held in the Kabetogama area but cited the conditions required for a permit and will hold the County to these requirements in the future. The Board agreed to address the letter at their next meeting as the Superintendent would be present to provide information on other matters.

2001/05-48 Motion by McBride, seconded by Pavleck to adjourn the meeting at 2:45 p.m. Voting yes: Hanson, McBride, Lepper, Chezick, Pavleck. Motion carried.