REGULAR MEETING OF THE KOOCHICHING COUNTY BOARD OF COMMISSIONERS
Held on Tuesday, December 17, 2002; 10:08 a.m.

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

MEMBERS ABSENT: None

OTHERS ATTENDING: Einar Sundin, Susan Congrave, Randy Rehnstrand, Duane Nelson, Ann Scholler, Bob Peterson, Shawn Mason, Pete Schultz, Terry Murray, Jan Derdowski, Jaci Nagle, Doug Grindall, Richard Lehtinen, Joe Boyle, Raoul Lufbery, Myrna Ahlgren, Dale Olson; Reporters Laurel Beager, Roger Jerome and Jen O’Reily

2002/12-09 Motion by Lepper, seconded by Chezick to approve the agenda with additions and deletions. Voting yes: McBride, Lepper, Hanson, Chezick, Pavleck. Motion carried.

2002/12-10 Motion by Chezick, seconded by Pavleck to approve the minutes of the December 3, 2002 special meeting with deletion of the informational section proceeding motion 2002/12-05 due to recording inaccuracies. Voting yes: McBride, Lepper, Hanson, Chezick, Pavleck. Motion carried.

2002/12-11 Motion by Lepper, seconded by Pavleck to approve payment of the Public Health claims in the amount of $24,388.33 (payment detail on file in the Public Health Department), to approve payment of the Auditor’s claims in the amount of $43,647.75 (with payment detail on file in the Auditor’s Office), authorizing Board Chair’s signature to the Auditor’s November vendor payment listing verifying its review, to approve payment of the Highway claims in the amount of $69,245.17 (with payment detail on file in the Highway Department), to approve payment to Johnson, Killen & Seiler, P.A. in the amount of $3,490.80 for personnel legal service with payment from the Administration Legal Budget and the Board Legal Budget, and approve payment of Community Service social service and financial claims and administrative expenditures as presented (payment detail on file in the Community Service Department). Voting yes: McBride, Lepper, Hanson, Chezick, Pavleck. Motion carried.

2002/12-12 Motion by Hanson, seconded by Lepper authorizing an adjustment to the 2002 Environmental Service Budget adding $5,000 to the Water Plan Budget to cover a service payment with 2001 deferred Water Plan grant funds. Adjustment will increase deferred revenue in the 2002 Budget by $5,000. Voting yes: McBride, Lepper, Hanson, Chezick, Pavleck. Motion carried.

2002/12-13 Motion by Chezick, seconded by Lepper to adopt the 2003 levy of $3,169,533 less HACA of $26,471 (less portion due to subordinate districts) with the following gross levy breakdown: General Revenue - $1,119,533; Community Services - $1,200,000; Public Health - $100,000; Road and Bridge - $500,000; Environmental Service - $150,000; Regional Corrections - $100,000. Voting yes: McBride, Lepper, Hanson, Chezick, Pavleck. Motion carried.

2002/12-14 Motion by Pavleck, seconded by Hanson authorizing designation of the County’s General Revenue and Special Revenue Funds to recognize reserve amounts allocated for the 2003 budget year. Motion further adopts the 2003 Budget and Budget Plan in the amount of $21,399,379. Motion further adopts the following directives, effective immediately, and until such time as amended or terminated by the Board:

a. Hiring freeze for all hires, including temporary and part time – requires all hire requests to come before the Board;
b. Overtime reduction in all departments. The Board will review overtime usage in
every department and meet with Department Heads to determine a reduction target.
Until such time, department heads are directed to reduce overtime in their department.
c. A freeze on position description changes unless determined by the Board as necessary to accommodate service and budget changes;
d. Board approval required on all capital outlay purchases over $1,000;
e. First half allocations to be paid to outside entities with memo stating second half allocations to be determined in June, 2003;
f. Board will meet with each department head and their supervisors to prepare for a worst case budget scenario with State cuts and to review their revenue streams and expenditures for the current budget deficit;
g. Auditor will provide the Board monthly Budget/Expenditure Reports for monthly monitoring of budget expenditures;
h. 2003 Budget remains open and subject to adjustments at any time to balance the current budget deficit and to respond to any cuts received by the State in balancing their financial deficit.
Voting yes: McBride, Lepper, Hanson, Chezick, Pavleck. Motion carried.

2002/12-15 Motion by Hanson, seconded by Lepper to forgive the balance of a loan to the Airport Commission in the amount of $20,626. Loan was established in Board Motion 97/09-07 and forgiveness of the loan is due to a funding agreement reached in the 2003 Budget process with the Airport Commission for 2003 funding. Voting yes: McBride, Lepper, Hanson, Chezick, Pavleck. Motion carried.

2002/12-16 Motion by Pavleck, seconded by Chezick accepting the recommendation of the Assessor to grant an abatement for 2001 and 2002 for Wayne and Pamela Barnes due to a valuation reduction error (parcel # 07-55-00100). Voting yes: McBride, Lepper, Hanson, Chezick, Pavleck. Motion carried.

2002/12-17 Motion by Hanson, seconded by Pavleck to approve 2003 Forestland Leases for Kootasca, Community Service, Public Health, A.E.O.A, Falls Hunger Coalition, and ODC with no change in terms or rates from 2002. Voting yes: McBride, Lepper, Hanson, Chezick, Pavleck. Motion carried.

2002/12-18 Motion by Hanson, seconded by Pavleck authorizing the reallocation of the DNR In Lieu dollars in the 2002 Budget giving the General Revenue Fund an additional $100,000 and reducing the Highway Budget allocation by $100,000 and reallocation of the Attached Machinery Aid giving the General Revenue Fund an additional $100,000 and reducing the Community Service Budget allocation by $100,000. Voting yes: McBride, Lepper, Hanson, Chezick, Pavleck. Motion carried.

2002/12-19 Motion by Chezick, seconded by Hanson authorizing Board members’ attendance to the MN Chamber of Commerce Legislative Reception in St. Paul on January 8, 2003 as County Board representation is requested to introduce the business community’s priorities for the 2003 legislative session. Voting yes: McBride, Lepper, Hanson, Chezick, Pavleck. Motion carried.

000 Tri County Community Health Board Administrator Randy Rehnstrand presented the Board with the proposed 2003 Community Health Budget, which includes a budget for Koochiching County. The budget is required in order to qualify for State subsidies. The Tri County Board anticipates changes in funding amounts due to the State’s budget deficit but at this time it is unknown what will be targeted.

2002/12-20 Motion by Hanson, seconded by Lepper adopting the following resolution relating to the Community Health Services Subsidy Budget for 2003:

WHEREAS, the Minnesota Local Public Health Act of 1987 requires that participating
counties develop a Community Health Services Plan and annual budget in order to
qualify for State subsidies; and

WHEREAS, Koochiching County, in cooperation with Aitkin and Itasca Counties, has
established through Joint Powers Agreement a Community Health Services Board to
develop and implement policy and procedures for the preparation of the Community
Health Services Plan and Budget; and

WHEREAS, the Aitkin-Itasca-Koochiching Community Health Board has adopted, and
recommended for approval, a Community Health Budget for 2003; and

WHEREAS, the proposed 2003 Budget has been developed in accordance with local
needs and priorities of the 2000-03 Community Health Services Plan as approved by the
Koochiching County Board.

NOW, THEREFORE, BE IT RESOLVED, that the Koochiching County Board does hereby approve the 2003 Community Health Budget and authorizes the submission of the Budget to the Minnesota Department of Health. Voting yes: McBride, Lepper, Hanson, Chezick, Pavleck. Motion carried.

000 The Sheriff requested Board approval of a State Snowmobile Safety Enforcement Grant application, which he applies for each year. The grant requires the County to expend funds and receive reimbursement from the grant. The Board expressed concern with the possibility of the grant funding being cut while the County is expending funds. However, after discussion it was agreed that close monitoring of the grant and state funding would occur and that the request for reimbursement would occur immediately upon County expenditures reaching the grant amount.

2002/12-21 Motion by Hanson, seconded by Pavleck to approve a Snowmobile Safety Enforcement Grant Agreement between Koochiching County and the State of Minnesota – Commissioner of Natural Resources in the amount of $4,397.31 and authorizing Board Chair’s signature to said Grant Agreement. Voting yes: McBride, Lepper, Hanson, Chezick, Pavleck. Motion carried.

000 Visitors and Convention Bureau President presented their annual financial and activity reports along with their accomplishments and goals. Discussion was held on the use of lodging tax funds and in promoting the Community College whenever there is an opportunity to do so in their marketing plans. The Board was asked to provide input as the Bureau will be holding a retreat in February to revisit their objectives and goals.

2002/12-22 Motion by Pavleck, seconded by Hanson to renew a service agreement for AEOA Volunteer Drivers with a mileage rate change as recommended by the KCCS Director. Voting yes: McBride, Lepper, Hanson, Chezick, Pavleck. Motion carried.

2002/12-23 Motion by Pavleck, seconded by Hanson to approve a service agreement for Koochiching County Sheriff IV-D services as recommended by the KCCS Director, which is required for child support reimbursement. Approval at this time is in contract terms with rate adjustments to come back at a future date for approval. Voting yes: McBride, Lepper, Hanson, Chezick, Pavleck. Motion carried.

000 The Board received notice that Susan Thorstad-Salmi was hired as the Office Support Specialist on December 16, 2002.

2002/12-24 Motion by Hanson, seconded by Chezick accepting the recommendation for the following licenses: case #30033 relicensing for foster care for five children, case #50779 closing home for foster care services due to relicensing under another agency, case #10078 relicensing for group family day care for twelve children. Voting yes: McBride, Lepper, Hanson, Chezick, Pavleck. Motion carried.

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

000 The Extension Director presented a request to the Board to use unexpended 2002 department budget funds to purchase information system equipment to improve efficiencies in the department. Being new on the job and not understanding the budget process, she ordered the equipment knowing she had unspent dollars but did not realize authorization for the capital outlay purchases was needed.

2002/12-25 Motion by Hanson, seconded by Lepper authorizing the Extension Department to expend up to $2,300 of unspent dollars in the 2002 Extension Budget for a computer monitor, palm pilots, print server, phone and networking. Motion further authorizes the following 2002 Extension Budget adjustment: 01-601.6339 -$700, 01-601.6229 -$600, 01-601.6400 -$1,000, 01-601.6660 +$2,300. Voting yes: McBride, Lepper, Hanson, Chezick, Pavleck. Motion carried.

000 The Information Systems Manger ordered a series of information system equipment as approved in the 2003 Information Systems Budget due to immediate needs and before she knew of the Board’s directive on capital outlay purchases. The purchase order includes replacement of two failing PC systems, provides PCs for the new elected officials and four GIS units for upcoming training in January. Total purchase comes to $12,532.23.

2002/12-26 Motion by Hanson, seconded by Lepper authorizing the capital outlay purchases out of the 2003 Information System Budget as presented by the Information Systems Manger in the amount of $12,532.23 based on need determination. Voting yes: McBride, Lepper, Hanson, Chezick, Pavleck. Motion carried.

2002/12-27 Motion by Lepper, seconded by Hanson accepting the recommendation of the License Committee to approve the following 2003 Tobacco Licenses: Loon’s Nest, Rainy Lake Spirits LCC, Korner Kwik Stop, Country Sampler Restaurant and Saloon, Christiansen’s Store, Rainy Lake Lodge, Rainy Lake Houseboats, Nelson’s Store, Island View Lodge, The Y, Sha Sha Resort, Lu’s, Woodland Inn and Road House and to approve the following 2003 Liquor Licenses: Rainy Lake Houseboats – Off Sale Intoxicating Liquor, Loon’s Nest – Off Sale 3.2% Malt Liquor, Country Sampler Restaurant and Saloon – On Sale, Off Sale and Sunday Intoxicating Liquor, Korner Kwik Stop – Off Sale 3.2% Malt Liquor, Rainy Lake Spirits LLC – Off Sale Intoxicating Liquor, The Y – On Sale and Off Sale Intoxicating and On Sale and Off Sale 3.2% Malt Liquor; Sha Sha Resort – On Sale, Off Sale, and Sunday Intoxicating Liquor; Nineteenth Hole – On Sale and Sunday Intoxicating Liquor, Island View Lodge – On Sale, Off Sale and Sunday Intoxicating Liquor, Christensen’s Store – On Sale and Off Sale 3.2% Malt Liquor; Rainy Lake Lodge – On Sale, Off Sale and Sunday Intoxicating Liquor, Lu’s – On Sale, Off Sale and Sunday Intoxicating Liquor; Nelson’s Store – Off Sale Intoxicating Liquor. Motion further approves 2003 Liquor Licenses for the Roadhouse – On Sale Intoxicating Liquor and Woodland Inn - On Sale, Off Sale and Sunday Intoxicating Liquor pending approval of the Licensing Committee. Voting yes: McBride, Lepper, Hanson, Chezick, Pavleck. Motion carried.

2002/12-28 Motion by Hanson, seconded by Chezick authorizing expenditure out of the 2003 Auditor/Treasurer Budget in the amount of $175.00 for the 2003 annual MACO Conference due to an advanced registration deadline. Voting yes: McBride, Lepper, Hanson, Chezick, Pavleck. Motion carried.

2002/12-29 Motion by Pavleck, seconded by Lepper approving additional bond coverage for the combined Auditor/Treasurer position with additional premium cost of $100.00. Voting yes: McBride, Lepper, Hanson, Chezick, Pavleck. Motion carried.

000 The Land Commissioner reviewed the results of the November 20, 2002 Timber Auction: all tracts sold totaling 25,181 cords for a total auction sale value of $695,023.19.

2002/12-30 Motion by Hanson, seconded by Lepper authorizing the Land Commissioner to take quiet title action on a ten acre parcel of tax forfeited land on the Van Lynn Road to prepare the property for sale at the next County land sale. Voting yes: McBride, Lepper, Hanson, Chezick, Pavleck. Motion carried.

000 The Highway Engineer recommended to the Board to rebid the County Road 57 Bridge Replacement Project in February and to delete the grading work from the bid and have County forces do the work to reduce cost. The Engineer felt that mobilization and the area itself are the reasons for the high cost. Other design options were looked at but no significant savings were found.

2002/12-31 Motion by Pavleck, seconded by Hanson to reject all bids for the County Road 57 Bridge Replacement Project as recommended by the Engineer. Voting yes: McBride, Lepper, Hanson, Chezick, Pavleck. Motion carried.

2002/12-32 Motion by Lepper, seconded by Pavleck certifying final value for Project SAP 36-602-12 (Old Highway 11 shoulder widening) of $277,907.02 with work performed by Wagner Construction and for Project SAP 36-598-24 (bridge replacement) of $39,400.00 with work performed by Midwest Contracting, LLC as recommended by the Highway Engineer. Voting yes: McBride, Lepper, Hanson, Chezick, Pavleck. Motion carried.

2002/12-33 Motion by Lepper, seconded by Pavleck canceling the following non-highway bills for work performed by the Highway Department: surveying work at the Courthouse in the amount of $462.27, snow removal at the Courthouse in the amount of $208.11, clearing brush on a snowmobile trail in the amount of $750.00 and graveling at the cemetery in the amount of $404.70. Voting yes: McBride, Lepper, Hanson, Chezick, Pavleck. Motion carried.

2002/12-34 Motion by Lepper, seconded by Hanson to add the Jackfish Sewer Project to the agenda. Voting yes: McBride, Lepper, Hanson, Chezick, Pavleck. Motion carried.

000 The Environmental Service Director provided the Board the final plat for West Gold Shores, which was approved by the Planning Commission subject to ten conditions recommended by staff. The ten conditions must be met before approval of the final plat so they become a part of the plat. The Director stated that he has sufficient documentation at this time that the ten conditions will be met before the Plat receives final execution by the County.

2002/12-35 Motion by Hanson, seconded by Lepper approving the final plat for West Gold Shores as recommended by the Environmental Service Director and Planning Commission and authorizing County signatures to the Plat upon verification that all conditions are met. Voting yes: McBride, Lepper, Hanson, Chezick, Pavleck. Motion carried.

2002/12-36 Motion by Pavleck, seconded by Hanson authorizing the Environmental Service Department to expend up to $20,000 of unspent 2002 department budget funding for purchase of new canisters and lids as some canisters have deteriorated beyond reasonable repair. Motion further authorizes an internal 2002 Environmental Service Department Budget adjustment transferring funding from other line items to the capital outlay line item for these purchases. Voting yes: McBride, Lepper, Hanson, Chezick, Pavleck. Motion carried.

000 The Board was informed that the Department will again seek quotes for repair of the recycle trailers due to the high quote received and bring the matter back to the Board when more information is obtained.

000 The Environmental Service Director informed the Board that the Army Corp has committed to a timeline for preparation of the EAW for the proposed Jackfish Sewer Project. The Army Corp suggests a public meeting during their thirty-day review period. The Corp believes they can produce the final document by April 1, 2003 with the thirty-day review period and public meeting conducted in February. Board stated that if the Corp holds the public meeting, to ensure they make it clear for the public who is holding the meeting and why.

2002/12-37 Motion by Pavleck, seconded by Hanson to adjourn the meeting at 3:25 p.m. Voting yes: McBride, Lepper, Hanson, Chezick, Pavleck. Motion carried.