SPECIAL MEETING OF THE KOOCHICHING COUNTY BOARD OF COMMISSIONERS
Held on Tuesday, August 13, 2002; 10:00 a.m.

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

MEMBERS ABSENT: None

OTHERS ATTENDING: Ann Scholler, Terry Murray, David Johnson, Marie Mettler, Ranae Whitbeck, Marty Cody, Paul Mielke, Larry and Elaine Beach, Todd Forsythe, Richard Lehtinen, Destry Hell, Steve Blair, Raoul Lufbery, Della Warren, Walt Whitbeck, George Jessen, Doug Grindall, Greg Korstad, Kirsten Rojina; Reporters Laurel Beager and Roger Jerome

2002/08-01 Motion by Chezick, seconded by Lepper to approve the agenda with additions and deletions. Voting yes: McBride, Lepper, Hanson, Chezick, Pavleck. Motion carried.

2002/08-02 Motion by Lepper, seconded by Hanson to approve the minutes of the July 23, 2002 special meeting with correction and to correct Board Motion 2002/07-07 changing CSAH 485 to CSAH 48. Voting yes: McBride, Lepper, Hanson, Chezick, Pavleck. Motion carried.

000 The Board received notice of the hire of Donald Ungerecht as a part time Sheriff Deputy on July 29, 2002 and the hire of Jan Derdowski as the Extension Director and 4-H Educator with a starting date in August (state employee).

2002/08-03 Motion by Lepper, seconded by Chezick to approve payment of the Auditor’s bills in the amount of $134,453.47, authorizing Board Chair’s signature to the Auditor’s July vendor payment listing verifying its review, approve payment to Griffith Law Office in the amount of $630.00 for legal work on VNP matters with payment from the Board’s Legal Budget, to approve payment of membership dues to the Laurentian RC&D Council in the amount of $200.00 and authorizing an adjustment in the County Board Budget moving $1,500 from telephone to dues to cover 2002 dues expense, and to approve payment to Flaherty and Hood for 2002 lobbying service in the amount of $2,941.19 with payment from the Legislation Budget and authorizing a budget adjustment moving $5,000.00 from the Board’s Project Budget to the Legislation Budget to cover 2002 lobbying expense. Voting yes: McBride, Lepper, Hanson, Chezick, Pavleck. Motion carried.

2002/08-04 Motion by Lepper, seconded by Hanson approving a two-day On Sale 3.2% Malt Liquor License for the Birchdale Softball Club for August 31 through September 1, 2002 and to approve a Minnesota Lawful Gambling Application for Exempt Permit LG220 for the G.R.S. Volunteer Fire Department for a raffle on November 16, 2002 as recommended by the License Committee. Voting yes: McBride, Lepper, Hanson, Chezick, Pavleck. Motion carried.

2002/08-05 Motion by Lepper, seconded by Chezick amending the Medical Examiner Agreement to contract directly with the Duluth Clinic for the service. Voting yes: McBride, Lepper, Hanson, Chezick, Pavleck. Motion carried.

2002/08-06 Motion by Chezick, seconded by Lepper to table action on returning the remaining balance of the Border Grant until the August 27, 2002 meeting. Voting yes: McBride, Lepper, Hanson, Chezick, Pavleck. Motion carried.

000 The Board received additional information on the request to have the County support the establishment of a Foreign-Trade Zone in the County. Within law and the Planning and Zoning Ordinance, safety nets are in place to further review impacts on residential properties. The request came from the KEDA and the City of International Falls has supported the establishment of the zone.

2002/08-07 Motion by Hanson, seconded by Lepper to approve and authorize submission of Application for Establishment of a Foreign-Trade Zone in Koochiching County, Minnesota:

The Foreign-Trade Zones Act, 19 U.S.C. 81(a) to 81(u), as amended, permits "public corporations", including political subdivisions of a state, including without limitation a county such as Koochiching County (the "County"), and municipal corporations such as the City of International Falls (the "City"), to participate in the Foreign-Trade Zone Program (the "Program"), administered by the United States Department of Commerce.

Chapter 469, as amended by Laws of Minnesota 1989, Chapter 481, likewise authorized such public corporations, which are port authorities to apply for foreign trade zone status.

An application for foreign trade zone status is filed with the Foreign-Trade Zone Board, which has been granted the authority to rule on such applications.

There are two existing foreign trade zones in Minnesota, but none is located in close proximity to Koochiching County.

A study conducted by the Koochiching Economic Development Authority recommended that the County apply for foreign trade zone status in view of certain substantial economic benefits that could be derived for such status.

Foreign trade zones have been shown to provide direct benefits to local businesses involved in foreign trade by removing barriers to such trade and by placing local businesses on an equal footing with competitive communities.

The proposed general-purpose foreign-trade zone is comprised of sites located at the Automotive Testing property located on the airport site, the International Falls Business Park located on 22nd Street and City/County/State land south of Highway 11 abutting railroad tracks.

These sites have been chosen and configured geographically to serve the residents and business interests of the County by enhancing the competitive position of those County businesses engaged in international trade.

NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF KOOCHICHING COUNTY, MINNESOTA, that the application proposed by the Koochiching Economic Development Authority be submitted to the Foreign -Trade Zone Board with the full approval and endorsement of the Board of County Commissioners of Koochiching County.

BE IT FURTHER RESOLVED that the chairman of the Board of County Commissioners be and is hereby authorized to execute the application for foreign-trade zone status on behalf of the County Board. Voting yes: McBride, Lepper, Hanson, Chezick, Pavleck. Motion carried.

2002/08-08 Motion by Hanson, seconded by Lepper authorizing Board member’s attendance to the IJC’s annual open house and public meeting on regulation of Namakan and Rainy Lakes and Rainy River Water Quality on August 20, 2002 with further discussion on the matter at the August 27, 2002 County Board meeting. Voting yes: McBride, Lepper, Hanson, Chezick, Pavleck. Motion carried.

2002/08-09 Motion by Hanson, seconded by Lepper approving the purchase of an air conditioner for radio equipment located in the Big Falls tower building with the Highway and Sheriff’s Budget to share the cost of $2,500 and to approve the purchase in the amount of $200.00 for a television and VCR for the jail with expenditure from the Sheriff’s Budget. Motion further approves an adjustment in the Sheriff’s Budget moving $1,450.00 from 01-200.6457 to 01-200.6660 to cover these expenditures. Voting yes: McBride, Lepper, Hanson, Chezick, Pavleck. Motion carried.

2002/08-10 Motion by Pavleck, seconded by Hanson approving the purchase of a paper shredder for the LEC Squad Room with the County paying one half of the cost ($310) and the City of International Falls to pay the other half of the cost and approving an adjustment in the Sheriff’s Budget transferring $310 from 01-200.6400 to 01-200.6660 to cover this purchase. Motion further approves an adjustment in the Sheriff’s Budget transferring $1,020.00 from 01-200.6670 to 01-200.6660 to cover an additional shortage in the Sheriff’s capital outlay budget. Voting yes: McBride, Lepper, Hanson, Chezick, Pavleck. Motion carried.

000 The KCCS Director informed the Board that Jan Derdowski submitted her resignation for August 3, 2002 due to her hire as County Extension Director/4-H Educator. With this resignation, the department will reassign social workers to cover the vacancy and service in Northome and Indus leaving a Child Protection Social Worker position to fill. The Board was informed that one day of service per week will be provided to the Northome area and four days of service per week will be provided for Indus, which has the support of both areas. This will change a prior Board motion creating a full time social worker position to be stationed in Northome and to service both Northome and Indus. The Board concurred with this change.

2002/08-11 Motion by Hanson, seconded by Lepper authorizing the hiring of a Child Protection Social Worker due to a vacancy created by resignation and reassignment of work. Voting yes: McBride, Lepper, Hanson, Pavleck; absent for vote: Chezick. Motion carried.

000 The County Attorney requested a temporary cash flow loan for the Law Library Account due to the need to pay a past due bill and having insufficient funding in the account to cover the bill. The establishment of a CD law reference system expended a large portion of the funding but measures were taken to eliminate the updates to the CD system. This change did not happen fast enough to replenish the account so other expenditures were cut. Revenue for the account comes from surcharges on fines and brings in about $2,000 a month. Better care has to be taken to monitor expenditures, which is being done. The past due bill to West Group for law books for the Judge is a legitimate expense for the Law Library as it has been a past practice to purchase books for the Judge.

2002/08-12 Motion by Pavleck, seconded by Lepper approving payment of $3,960.77 from the Law Library Account with the understanding that the General Revenue Fund will cover the funding shortage in the account until such time as revenues can cover the expenditure. Voting yes: McBride, Lepper, Hanson, Chezick, Pavleck. Motion carried.

000 Three members of the Safety Committee reviewed a proposal to hold an Employee Wellness/Safety Training Day and Fair on September 18, 2002 as a means to obtain employees’ involvement in safety and wellness.

2002/08-13 Motion by Chezick, seconded by Pavleck supporting the Safety Committee’s proposal to hold an Employee Wellness/Safety Training Day and Fair on September 18, 2002 as presented and to authorize Board member’s attendance to the event. Voting yes: McBride, Lepper, Hanson, Chezick, Pavleck. Motion carried.

000 The Board Chair called for public comment at 11:30 a.m. Paul Mielke representing property owners affected by the proposed Jackfish Sewer Project, stated that surveying in the proposed sewer area for easement purposes may not produce the same legal description as recorded and they feel that any property line discrepancies found as a result of the surveying need to be rectified before establishing easements. If the project were not being proposed, this survey issue would not be raised. Commissioner Pavleck stated that this issue was raised with legal counsel and it was his opinion that it would not impact establishment of easements for the project. To ask the County or the property owners in the proposed area to fix the survey line discrepancies in the area is not feasible. Commissioner Pavleck instructed the Environmental Service Director to set up a meeting with legal counsel to review this matter. No other comment was presented.

2002/08-14 Motion by Hanson, seconded by Pavleck accepting low bid of $5,850 (only bid) from D.H. Contracting to install a mound system on residential property owned by Todd Forsythe in Ericsburg to replace the test system placed on the property by the County with expenditure from the Environmental Service Budget. Voting yes: McBride, Lepper, Hanson, Chezick, Pavleck. Motion carried.

000 The Environmental Service Director reviewed a tentative timeline for the proposed Jackfish Bay Sewer Project. Commissioner Pavleck stated that bidding the project is the only way to find out if the project will be supported, however, there are requirements that have to be dealt with before we get to this process. Commissioner Chezick suggested being more flexible on the timeline for actual construction as being more flexible with the construction date might provide better bids. Larry Beach asked what the status was of their request to relocate the sewer line as this needs to be dealt with before property owners consider the easements. Commissioner Pavleck stated that Ayres is looking at this request and we should have an answer in two weeks. Raul Lufbery informed the Board that the Committee would be distributing a newsletter shortly updating property owners on the project. Elaine Beach stated that they have not received information on this project and have had to come looking for information. Also that the people in Morrison Point want the line relocated and doing so would give more support to the project.

000 George Jessen, President of Ulland Brothers Inc., provided the Board the current status of pre-construction work for the Gold Shores Road Project and an operational schedule for actual construction. Two property owners would not participate in the pre-condition survey. Ulland’s contract states that the pre-condition survey needed to be done prior to construction with property owner’s consent, which they feel was completed as the two remaining property owners would not give their consent to the assessment. In looking at these two properties, they feel the properties are a long ways and would not be impacted by the size of shots planned for that area. They are looking for clarification on whether they have full-filled the pre-condition survey requirement and can move ahead on construction. The Highway Engineer and Board agreed the pre-condition assessment was put in place to document conditions prior to construction so that if there was damage a basis of comparison was on file and that this was required for the protection of everyone. However, it was not intended to force property owners to participate. The Highway Engineer and Board agreed that the contractor met the pre-condition survey requirement and could proceed with construction.

000 A draft Pelland Quarry Operations Report and Reclamation Plan was presented to the Board from representatives of Ulland Brothers, Inc. Attorney Korstad stated that the plan is their approach for quarry operation, which will be presented to the Planning Commission as the next step. The County’s Zoning Ordinance requires recent conditions be imposed with grandfathered uses. It is their position that this quarry operation is a grandfathered use and that this plan puts in place conditions for their operations. Engineer Rojina reviewed the plan with the Board. Aggregate material is a highly consumed product and depending on location, there can be an abundance or deficit. Though Koochiching does have some supply, it is not abundant. Mining of the quarry as presented in the plan will be done in seven phases, which will mine the 28 acres based on demand. There is no washing proposed so water supply will not be an issue. Noise is regulated by MPCA and they will use topography and vegetation to also mitigate the noise. In researching the area, the closest resident is one-quarter mile from the site. Dust will be created mostly from hauling of the material and they will apply water to the roads to mitigate the dust. There is also dust created from crushing of materials but their machines are supplied with a water system, which keeps the dust down. Silica dust is created by blasting, regulated by MNSHA (form of OSHA for mining operations). Volume of materials leaving the site is not considered large so traffic out of the site should be moderate, with this volume expected to increase during construction season. When the mining operation ceases, a reclamation plan is in place, which includes a fifty-foot set back and terracing. Commissioner McBride asked why the hours of operation were different for the Gold Shores Project than in the long-term mining plan. The President for Ulland Brothers stated that the hours set for the Gold Shores Project fit with the construction hours and that the hours set in the plan is intended for long-term use. Commissioner Pavleck stated that residents were very upset with the operations by your predecessors as rocks were shot across the road, crushing and blasting done at all hours of the night, along with traffic and dust issues. Point being that the operation needs to be a good neighbor. Attorney Korstad stated that Ulland Brothers is well aware of the past concerns and complaints and this is the reason they drafted this plan of operation, to be a good neighbor, run a sound operation and eliminate concerns. The Environmental Service Director summarized that it is Ulland’s position they do not need a Conditional Use Permit as this is a grandfathered use and therefore need only to conform to current conditions by means of a plan. He has contacted Attorney Scott Anderson to provide an opinion for the County on whether a conditional use permit is needed and the County will have that opinion shortly. Attorney Korstad stated that he and Attorney Anderson have been in discussion on the matter. The Director stated that Ulland’s plan needs to be submitted this week in order to meet the deadline for the September Planning Commission meeting. The plan will be viewed as a draft and regardless of whether a conditional use permit is needed or not, the plan is subject to a public hearing.

2002/08-15 Motion by Pavleck, seconded by Chezick that it be resolved, the County of Koochiching enter into an agreement with the Duluth, Winnipeg, and Pacific Railway and the Commissioner of Transportation for the installation and maintenance of railroad crossing signals with gates, circuitry and LED’s at the intersection of the Van Lynn Road (CSAH 24) with the tracks of the Duluth, Winnipeg, and Pacific Railway near International Falls, Minnesota, and appointing the Commissioner of Transportation agent for the County to supervise said projects and administer available Federal Funds in accordance with Minnesota Statute, Section 161.36. The County’s share of the cost shall be 10 percent of the total signal cost. Be it further resolved that the Board Chair and Highway Engineer are hereby authorized to execute said agreement and any amendments thereto for and on behalf of the County. Voting yes: McBride, Lepper, Hanson, Chezick, Pavleck. Motion carried.

2002/08-16 Motion by Pavleck, seconded by Hanson authorizing payment of $8,726 to Lake of the Woods County from the 2002 Highway Department Budget for one-half of the cost to move power poles during a ditch cleaning project in Koochiching County performed by Lake of the Woods Highway Department as recommended by the Highway Engineer. Voting yes: McBride, Lepper, Hanson, Chezick, Pavleck. Motion carried.

2002/08-17 Motion by McBride (Chair to Lepper), seconded by Pavleck authorizing payment from the 2002 Highway Budget up to $600 to assist the Forest Hill Cemetery Association in obtaining and hauling gravel for the cemetery. Voting yes: McBride, Hanson, Pavleck; voting no: Lepper, Chezick. Motion carried.

2002/08-18 Motion by Lepper, seconded by Hanson to award low bid to Midwest Contracting, LLC in the amount of $40,245.00 for bridge replacement on County Road 83 as recommended by the Highway Engineer. Voting yes: McBride, Lepper, Hanson, Chezick, Pavleck. Motion carried.

2002/08-19 Motion by Lepper, seconded by Pavleck to reject all bids for milling and bituminous overlay on 17th Street and 11 Street (SAP 36-645-07 and SAP 36-648-10) (due to receiving only one bid over the engineer’s estimate) and to defer the projects to next year as recommended by the Highway Engineer. Voting yes: McBride, Lepper, Hanson, Chezick, Pavleck. Motion carried.

2002/08-20 Motion by Chezick, seconded by Lepper supporting the City of International Falls’ request to remove the stop signs on CSAH 114 (20th Street) at the 3rd Avenue West Intersection as recommended by the Highway Engineer. Voting yes: McBride, Lepper, Hanson, Chezick, Pavleck. Motion carried.

2002/08-21 Motion by Lepper, seconded by Chezick to adjourn the meeting at 2:40 p.m. Voting yes: McBride, Lepper, Hanson, Chezick, Pavleck. Motion carried.