REGULAR MEETING OF THE KOOCHICHING COUNTY BOARD OF COMMISSIONERS
Held on Tuesday, December 16, 2003; 10:10 a.m.

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

MEMBERS ABSENT: None

OTHERS ATTENDING: Richard Lehtinen, Paul Mielke, Walt Whitbeck, Terry Murray, Jaci Nagle, Doug Grindall, Ann Scholler, Bob Peterson, Jerry Andre, Pam Lagoo, Dennis Hummitzsch, Lori Smith, Susan Congrave, Duane Nelson, John Mastin, Florence Hervey; Reporters Laurel Beager and Roger Jerome

2003/12-15 Motion by Pavleck, seconded by Adee to approve the agenda with additions and deletions. Voting yes: Lepper, Adee, Hanson, Chezick, Pavleck. Motion carried.

2003/12-16 Motion by Hanson, seconded by Adee to approve the minutes of the December 2, 2003 meeting. Voting yes: Lepper, Adee, Hanson, Chezick, Pavleck. Motion carried.

2003/12-17 Motion by Chezick, seconded by Adee to authorize Board Chair’s signature to the Auditor’s November vendor payment listing verifying its review, to approve payment of the Highway bills in the amount of $44,246.67 with payment detail on file in the Highway Department, and to approve payment of the Auditor bills in the amount of $34,903.27 with payment detail on file in the Auditor’s Office. Voting yes: Lepper, Adee, Hanson, Chezick, Pavleck. Motion carried.

2003/12-18 Motion by Pavleck, seconded by Chezick approving the 2004 County levy at $3,249,327 (increase over last year of $106,000). The 2004 levy breakdown is as follows: General Revenue - $1,180,996; Community Service - $1,200,000; Public Health - $118,331; Highway - $500,000; Environmental Services - $150,000; Regional Corrections - $100,000. Voting yes: Lepper, Adee, Hanson, Chezick, Pavleck. Motion carried.

2003/12-19 Motion by Pavleck, seconded by Adee authorizing the following County Fund designation for the 2004 County Budget: General Revenue Fund designate $4,700,000 for Cash Flow and 0 for 2004 Budget Reserves; Highway Fund designate $1,200,000 for Cash Flow and 0 for 2004 Budget Reserves; Community Service Fund designate $1,880,000 for Cash Flow and 0 for 2004 Budget Reserves; Public Health Fund designate $330,000 for Cash Flow and 0 for 2004 Budget Reserves; Environmental Service Fund designate $600,000 for Cash Flow and 0 for 2004 Budget Reserves; County Development Fund designate $40,000 for Cash Flow and $21,000 for 2004 Budget Reserves. Voting yes: Lepper, Adee, Hanson, Pavleck, Chezick. Motion carried.

2003/12-20 Motion by Pavleck, seconded by Adee to adopt the 2004 Budget and Budget Plan in the amount of $17,320,891. 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.
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, 2004;
f. 2004 Budget remains open and subject to adjustments at any time to respond to any cuts received by the State in balancing their financial deficit.
Voting yes: Lepper, Adee, Hanson, Chezick, Pavleck. Motion carried.

2003/12-21 Motion by Pavleck, seconded by Adee to adopt a 2004 Supplemental County Budget for Fund 02 and 13 accounts as recommended by the Coordinator to better reflect budget to actual expense and revenue in the County financial statement. Voting yes: Lepper, Adee, Hanson, Chezick, Pavleck. Motion carried.

2003/12-22 Motion by Hanson, seconded by Adee authorizing payment of $200.00 to the City of Littlefork from the 2003 Contribution Budget to support a history book project as part of the City’s Centennial Celebration. Voting yes: Lepper, Adee, Hanson, Chezick, Pavleck. Motion carried.

2003/12-23 Motion by Hanson, seconded by Pavleck re-appointing Commissioner Larry Chezick as the County Board’s representative on the Arrowhead Regional Development Commission with the new term to begin in January 2004. Voting yes: Lepper, Adee, Hanson, Chezick, Pavleck. Motion carried.

2003/12-24 Motion by Hanson, seconded by Chezick to approve a 2004 lobbying service contract with Flaherty & Hood with an amount not to exceed $20,000. Voting yes: Lepper, Adee, Hanson, Chezick, Pavleck. Motion carried.

2003/12-25 Motion by Pavleck, seconded by Adee to approve a 2004 Forestland Lease Agreement with AEOA with a seven-percent rent increase. Voting yes: Lepper, Adee, Hanson, Chezick, Pavleck. Motion carried.

2003/12-26 Motion by Pavleck, seconded by Adee authorizing the Environmental Service Department to pay canister site attendant contractors a signing sum of money to be deducted from their total contract amount as determined by the Environmental Service Director for up front costs and authorizing the Environmental Service Department to enter into an agreement with the Silverdale Canister Site Attendant to pay the insurance premium required in the service contract with cost to be reimbursed to the County over a six month period by reduction in the service provider’s monthly contract amount. Voting yes: Lepper, Adee, Hanson, Chezick, Pavleck. Motion carried.

000 The Board Chair received reports that there were times where two people were not scheduled at the transfer station which is in violation of the Board directive. The Director stated there were a couple instances where staffing became unavailable at the last minute and he did not reschedule someone else to fill in. The Board Chair stated that the directive states two staff at the transfer station and that this includes covering last minute staff changes.

000 Commissioner Chezick requested the Board consider seeking a legal opinion on whether there is a conflict of interest for himself and Commissioner Pavleck having property in the proposed Jackfish Sewer Project area before the Board has to vote on the project and secondly, he stated concern with the letter to the editor with regards to a closed meeting and negotiations with a bidder on the proposed Jackfish Sewer Project. Commissioner Pavleck stated to the Board that his actions as a Board Member and District Commissioner on this project have been guided by legal counsel.

2003/12-27 Motion by Hanson, seconded by Pavleck authorizing the Community Service Director to purchase two personal computers for his Department with expenditure from the 2003 Budget as recommended by the Community Service Director and IS Manager. Voting yes: Lepper, Adee, Hanson, Chezick, Pavleck. Motion carried.

2003/12-28 Motion by Pavleck, seconded by Adee certifying final value for SAP 36-622-08 with total value of $149,497.41 with Ulland Bros. Inc. as recommended by the Highway Engineer. Voting yes: Lepper, Adee, Hanson, Chezick, Pavleck. Motion carried.

2003/12-29 Motion by Hanson, seconded by Chezick certifying final value for the following projects as recommended by the Highway Engineer: SAP 36-598-20 with Garit Hanson Contracting, Inc. with a total value of $699,404.15; SAP 36-600-09 with Hardrives with a total value of $72,065.20; SAP 36-618-08 with Hardrives with a total value of $267,635.30; SAP 36-685-02 with Hardrives with a total value of $118,811.07; SAP 36-718-02 with Hardrives with a total value of $125,500.78; SAP 36-604-05 with Hardrives with a total value of $78,620.55; SAP 36-624-16 with Hardrives with a total value of $95,335.00. Voting yes: Lepper, Adee, Hanson, Chezick, Pavleck. Motion carried.

2003/12-30 Motion by Hanson, seconded by Adee to approve the following 2004 Tobacco License Applications as recommended by the Auditor: LBC Enterprise, Inc. d.b.a. “Lu’s”, Sha Sha Resort and The “Y”. Voting yes: Lepper, Adee, Hanson, Chezick, Pavleck. Motion carried.

2003/12-31 Motion by Pavleck, seconded by Hanson to authorize the use of the State of Minnesota Guide to Local Government Capital Assets Policies and Practices to implement the GSAB 34 accounting and financial reporting requirements for capital assets in the Koochiching County Financial Statement. Voting yes: Lepper, Adee, Hanson, Chezick, Pavleck. Motion carried.

2003/12-32 Motion by Pavleck, seconded by Chezick to table action on the Finance Team recommendation to hire Walker, Giroux and Haune under a three-year letter of understanding for performance of the annual County audit until more information is received on the terms of the agreement. Voting yes: Lepper, Adee, Hanson, Chezick, Pavleck. Motion carried.

2003/12-33 Motion by Chezick, seconded by Hanson to discontinue the issuing of game and fish licenses at the County as of January 1, 2004 as recommended by the Auditor as most activity was special licenses and a private vendor is now set up to take over this service. Voting yes: Lepper, Adee, Hanson, Chezick, Pavleck. Motion carried.

000 The Board was informed that Stephanie Promersberger was hired as Deputy Recorder on December 10, 2003.

000 The County Recorder submitted a request to fill the remaining vacant position in her department as the workload requires a second person and the department is getting further behind due to the change in staff and this vacancy. The Board agreed to their original plan which was to conduct the public comment period this afternoon on whether the County should remain in the abstracting business before considering the vacant position remaining in the Recorder’s Office.

000 The Land Commissioner requested the filling of the Department’s half time clerk position, which became vacant with the hire of the Deputy Recorder. The Land Commissioner stated that the position is needed.

2003/12-34 Motion by Pavleck, seconded by Adee to table the request by the Land Commissioner to fill the vacant one half time clerk position in the Land and Forestry Department until the December 23, 2003 meeting at which time they will consider the request by the Recorder to fill the vacancy in her Department. Voting yes: Lepper, Adee, Hanson, Chezick, Pavleck. Motion carried.

000 The Land Commissioner presented a recommendation for change in the administration of the timber sale extension fee changing it from a 10% prorated fee to a 10% fee on the uncut balance, added to all timber scaled 30 days after the expiration date; to establish an overdue account interest fee on all overruns not paid within 30 days from the date of billing at a rate according to M.S. 282.01, Subd 4 (currently 10%) and establishing policy that timber overruns must be paid in full within 180 days from the date of scale or will be considered a timber trespass. Recommendation is not intended to be retroactive. Commissioner Hanson expressed apprehension in adoption of the timber sale permit extension fee as would like more information on the impact to local loggers.

2003/12-35 Motion by Hanson, seconded by Chezick establishing an overdue account interest fee to be charged on all overruns not paid within 30 days from the date of billing at a rate according to M.S. 282.01, Subd. 4 and that timber overruns must be paid in full within 180 days from the date of scale or will be considered a timber trespass as recommended by the Land Commissioner. Voting yes: Lepper, Adee, Hanson, Chezick, Pavleck. Motion carried.

2003/12-36 Motion by Chezick, seconded by Hanson to table a motion by Pavleck, seconded by Adee to revise the timber sale permit extension fee to 10% of the uncut balance, added to all timber scaled 30 days after the expiration date as recommended by the Land Commissioner. Voting to table: Hanson, Chezick. Voting not to table: Lepper, Adee, Pavleck. Motion to table fails.

2003/12-37 Motion by Pavleck, seconded by Adee to revise the timber sale permit extension fee to 10% of the uncut balance, added to all timber scaled 30 days after the expiration date as recommended by the Land Commissioner. Voting yes: Lepper, Adee, Pavleck; voting no: Hanson, Chezick. Motion carried.

000 The Board Chair called for public comment at 11:50 a.m. Paul Mielke, referencing his letter to the editor about the closing of the meeting, stated he was told by the Auditor it was a Jackfish Bay Sewer Citizen Committee meeting and discussed the open meeting rules with the Attorney General before attending the meeting. Also, now that the Board knows the low bid for the Jackfish Sewer Project is much more than the per household cost target, the Board should drop the project or ensure the decision goes back to the public. Lori Smith of Mannco Trucking stated her objections to the proposal used to select solid waste hauling service as in her opinion, there are many discrepancies and inconsistencies between the request for proposal and the actual service contract. She requested the proposal and contract are rewritten to seek consistent and comparable proposals as she feels her company did not get the bid because she bid to meet all the requirements as stated in the proposal and/or contract where other bids did not. The Board agreed they would review the matter with the Environmental Service Director as the hauling service recommendation is expected to come before the Board at the December 23, 2003 meeting. Ms. Smith agreed to send the Board a written list of her objections. With no other comment the Board Chair closed public comment at 12:15 p.m.

2003/12-38 Motion by Chezick, seconded by Adee acknowledging receipt of the Professional Advisory Committee minutes from their meeting of December 8, 2003. Voting yes: Lepper, Adee, Hanson, Chezick, Pavleck. Motion carried.

000 The Public Health Director informed the Board that as of January 1, 2004 the Health Department will administrate the functions of the WIC Program for the County and is looking at June of next year to begin clinics in the Northome area.

2003/12-39 Motion by Hanson, seconded by Adee to approve a service contract with Claudette Erholtz to assist in transitioning WIC services to the Health Department at a maximum of 40 hours of consultation at $25 per hour as recommended by the Public Health Director. Voting yes: Lepper, Adee, Hanson, Chezick, Pavleck. Motion carried.

2003/12-40 Motion by Adee, seconded by Hanson to approve a one-year service contract with North Country Home Care/Hospice for nursing and aide services funded with waiver dollars as recommended by the Public Health Director. Voting yes: Lepper, Adee, Hanson, Chezick, Pavleck. Motion carried.

000 The Public Health Director informed the Board the County received a Tobacco Free Grant in the amount of $21,492 and that it is possible the grant will be around for two to three years. The Director informed the Board that the Department has been very involved in public health preparedness planning such as involvement in the regional distribution training of mass antibiotic and vaccines, cross border training, SARS training, and active participant of the Health Alert Network. She informed the Board that on January 29, 2004 a tabletop discussion is scheduled to prepare for the mock March 18 disaster drill, which will include a real time situation for the County and Canada. The Director stated more information would be provided the Board on this matter, as the County Board would be an active participant should such an event ever occur. The Director stated that Koochiching Family Planning is up and running through the Women’s Health Center in International Falls and the Center is working to establish a clinic site in Littlefork. The Department is out of the flu vaccine and this year they tested their policy and procedure for distribution of this limited vaccine and felt the policy tested well. The Department administered 1,588 flu vaccines. The Board was provided the Department’s Quarter 3, 2003 financial and statistical report.

2003/12-41 Motion by Pavleck, seconded by Hanson authorizing the Sheriff to seek bids for replacement of the Big Falls squad vehicle which is funded in the 2004 Sheriff Budget. Voting yes: Lepper, Adee, Hanson, Chezick, Pavleck. Motion carried.

000 The Sheriff submitted a recommendation to hire Reliance Telephone, Inc. to install a jail video monitoring system, with installation needed by January 1, 2004 due to scheduling changes in the department. This proposal was $79 higher than a local bid but meets the timeline required by the Department for installation and also provides a system used in other county jails so its reliance has been tested. The Sheriff requested he be allowed to expend the unused balance of capital outlay funding in the 2003 budget as well as the capital outlay funding budgeted in the 2004 budget to purchase this system.

2003/12-42 Motion by Chezick, seconded by Adee accepting the recommendation of the Sheriff to hire Reliance Telephone, Inc. to install a jail video monitoring system with expenditure from the 2003 and 2004 Sheriff Capital Outlay Budgets. Voting yes: Lepper, Adee, Hanson, Chezick, Pavleck. Motion carried.

2003/12-43 Motion by Hanson, seconded by Chezick to obtain the services of Walker, Giroux and Haune to conduct the County audit for the year ending 2003 with a cost not to exceed $39,500. Voting yes: Lepper, Adee, Hanson, Chezick, Pavleck. Motion carried.

2003/12-44 Motion by Adee, seconded by Hanson to adjourn the meeting at 2:25 p.m. Voting yes: Lepper, Adee, Hanson, Chezick, Pavleck. Motion carried.