REGULAR MEETING OF THE KOOCHICHING COUNTY BOARD OF COMMISSIONERS
Held on Tuesday, May 18, 2004; 10:30 a.m.

MEMBERS PRESENT: Commissioners Chezick, Lepper, Adee, Hanson

MEMBERS ABSENT: Commissioner Pavleck (Requested In Washington by the County’s Federal Legislators)

OTHERS ATTENDING: Einar Sundin, Senator Tom Saxhaug via telephone, Richard Lehtinen, Lee Grim, Mark Trompeter, Elaine Beach, Paul Mielke, Walt Whitbeck, Larry Beach, Raoul Lufbery, Myrna Ahlgren, Ron Laurion, Darlene Stoiber, Allen Burchell, Barb West, Chris Holbeck, Doug Grindall, Attorney Steve Fecker and Laura Schacht via telephone, Dennis Hummitzsch, Keith Knaeble, Lanny Johnson, Clayton Kimball, Terry Glowack; Reporters Laurel Beager, Roger Jerome and Jen O’Reily

2004/05-24 Motion by Adee, seconded by Lepper to approve the agenda with additions and deletions. Voting yes: Chezick, Lepper, Adee, Hanson. Motion carried.

2004/05-25 Motion by Hanson, seconded by Adee to approve the minutes of the May 11, 2004 special meeting. Voting yes: Chezick, Lepper, Adee, Hanson. Motion carried.

2004/05-26 Motion by Lepper, seconded by Adee to approve payment of the Highway bills in the amount of $50,315.09 and authorizing Board Chair’s signature to the Auditor’s April 2004 vendor payment listing verifying its review. Payment detail on file in the respective departments. Voting yes: Chezick, Lepper, Adee, Hanson. Motion carried.

2004/05-27 Motion by Lepper, seconded by Hanson to adopt the following resolution for application of Budget FY 2005 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

WHEREAS, the Applicant is submitting its request for application to the IRRRB for Budget FY 2005 grant funds.

NOW, THEREFORE BE IT RESOLVED, that the Applicant’s organization hereby authorizes and approves making application to the IRRRB for FY 2005 funds to assist in economic development.

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: Chezick, Lepper, Adee, Hanson. Motion carried.

2004/05-28 Motion by Adee, seconded by Lepper accepting the recommendation of the License Committee to approve On Sale, Off Sale and Sunday Intoxicating Liquor Licenses and a Tobacco License from June 1, 2004 through December 31, 2004 for Island View Lodge pending a signed purchase agreement and receipt of insurance coverage documentations. Voting yes: Chezick, Lepper, Adee, Hanson. Motion carried.

000 Senator Saxhaug informed the Board that he was back in the office today and doing fine and wanted to provide a quick update on session changes. ATV legislation was revised referring ATV usage on wetlands to the Wetland Conservation Act (WCA). This revision was supported by the DNR and passed the House and Senate as the intended purpose of WCA is to protect wetlands and seemed the logical place to address wetland damage concerns raised from ATV usage. These bodies agreed it was a common sense approach to resolving concerns and providing flexibility for ATV usage in wetlands, whether it is private or public land. The Senator also informed the Board that DNR Forestry legislation included the Forest Investment Fund which requires a portion of the state timber revenue be used to hire foresters to put up more wood for sale. Legislation was also passed increasing weight limits with a fee established to allow a portion of funding to go back to counties who may see their roads negatively impacted by the extra weight. Though there would be more weight on the roads, it is believed that the bigger loads would reduce the number of trips thereby reducing travel on the roads. The Senator will request a meeting with the County Board in a couple weeks to provide more details on the outcome of the 2004 session.

000 Commissioner Chezick gave the Chair to Commissioner Lepper. The
Environmental Service Director provided the Board a request to take action on the
proposed Jackfish Bay Sewer Project with a recommendation to approve the project.
Commissioner Hanson stated he received several calls questioning the accuracy of the
legal advice given the County on this project. When asked, the Environmental Service
Director stated that legal counsel acquired for this project was good. Commissioner
Chezick cautioned the Board about proceeding with the project. He felt lawsuits would
be forthcoming due to various violations made during the process based on his review of
the law and gave examples. He stated that the County’s General Revenue Fund will be at
risk if the benefit received does not equal the assessment. Commissioner Hanson felt the
project was an opportunity, understanding both sides of the issue. Commissioner Adee
reiterated that one way or another the systems in this area will need to comply with State
requirements and that state and federal dollars have been allocated to help offset property
owners’ costs in this project to bring their systems into compliance.

2004/05-29 Motion by Hanson, seconded by Adee to approve the Jackfish Bay Sewer Project to extend sewer service to the approximately 250 existing dwelling units allowing for hook-up of vacant parcels within the proposed District Boundaries with the intent to turn over administration of the project to the East Koochiching Sanitary District after completion of construction. Voting yes: Lepper, Adee, Hanson; voting no: Chezick. Motion carried.

2004/05-30 Motion by Adee, seconded by Hanson adopting the following resolution for the Jackfish Bay Sewer Project:

WHEREAS, in accordance with the prior resolutions of the Koochiching County Board of Commissioners, the second public hearing regarding the feasibility of expanding the East Koochiching Sewer District to include a centralized sewer collection system to be constructed in the Jackfish Bay area was originally convened pursuant to proper notice on December 17, 2003, and was then reconvened for further public comment on May 11, 2004, to discuss modifications to the original design and efforts to reduce the construction costs of the project; and

WHEREAS, following receipt of all public input, the reconvened public hearing was adjourned until the regularly scheduled meeting of the Koochiching County Board of Commissioners on May 18, 2004, so the board members could fully review and consider all items submitted regarding the feasibility of this project, and

WHEREAS, the Koochiching County Board of Commissioners, after a review and consideration of all items related to this project, hereby finds that the engineer's and viewers' reports have been made and all other proceedings in the matter had in accordance with law, that the estimated benefits of the project are greater than the total estimated cost, including damages, that the benefits and damages have been duly determined, that the proposed sewer system will be of public utility and benefit, and will promote the public health, and that the proposed system is practicable.
NOW THEREFORE BE IT RESOLVED, that the Koochiching County Board of Commissioners approves the planned method of expansion adopted by the East Koochiching Sewer Commission to include the area described as: All that portion of Koochiching County lying North of State Highway 11 between Crystal Bay and Tilson Creek of Rainy Lake, and those parcels lying between State Highway 11 and Town Road 224, all other parcels adjacent to Town Road 224, and Lots 2 through 5, Auditor's Plat No.6. A map detailing the exact areas for inclusion in the project and expanded sewer district is on file in the Office of the Environmental Services Department at the Koochiching County Courthouse.

Because of the increased size of the district, the East Koochiching Sewer Commission is hereby expanded by two members and Raoul Lufbery and Dave Austin, current members of the Jackfish Bay Sewer Subcommittee, are appointed as the initial Jackfish Bay residents to serve on the East Koochiching Sewer Commission.

NOW THEREFORE BE IT FURTHER RESOLVED, that the findings of the viewers' report are hereby adopted and confirmed and that the low bid of Wagner Construction, Inc., to construct the proposed sewer system with the negotiated changes in design that have been approved by the MPCA, be accepted provided that contract language acceptable to the project engineer, Ayres Associates, and the project attorney, Steven M. Shermoen, can be negotiated that incorporates a provision that the total cost payable to Wagner Construction, Inc., cannot exceed $8,277,900.00, despite whatever unforeseen events occur that might otherwise have caused the contractor to seek an increase in compensation for constructing the project; and provided the contract language gives Koochiching County a 90-day period following signing of the contract during which Koochiching County may opt out of the contract in the event any of the following occur: ( 1) a ruling or decision adverse to the County in the lawsuit regarding this project currently pending in Koochiching County District Court, or (2) any happening that precludes the County from financing that portion of the project not paid for by grants with a loan at one percent interest amortized over 20 years with the Water Pollution Control Revolving Fund, or (3) any happening that makes it appear likely that the cost of acquiring the necessary easements for the project will significantly exceed the estimated cost of $75,000, or (4) any appeal or other proceeding adverse to the project which makes it appear likely the project cannot be completed in a timely fashion or will be significantly more expensive to the property owners than estimated. It is acknowledged that in consideration of Wagner Construction, Inc., granting this period of up to 90 days for the County to opt out of the construction contract, the completion date for the project shall be extended one "working day" for each day the County retains the option to opt out of the contract.

NOW THEREFORE BE IT FURTHER RESOLVED, that the East Koochiching Sewer Commission and the Koochiching County Environmental Services Director are authorized to direct the project engineers, the project attorney, and the financial planner working on this project to take whatever steps the Sewer Commission and Environmental Services Director deem reasonably necessary to proceed with the completion of this project in a timely and cost effective manner. Voting yes: Lepper, Adee, Hanson; voting no: Chezick. Motion carried.

000 The Board Chair opened a public hearing at 11:15 a.m. for the purpose of receiving public comment on a proposed JOBZ Business Subsidy Policy. Upon calling for public comment, no one was in attendance for the public hearing and the Coordinator informed the Board that no written comment was received. The Board Chair closed the hearing at 11:16 a.m.

2004/05-31 Motion by Lepper, seconded by Hanson that upon concluding a public hearing and receiving no opposition, to adopt a JOBZ Business Subsidy Policy as required under State Law for the designated JOBZ sub zones within the County. Voting yes: Chezick, Lepper, Adee, Hanson. Motion carried.

000 Allen Burchell representing the Kabetogama Township submitted a resolution to the
Board requesting their support for an appeal to the National Park Service (NPS) to
remove a Beaver dam that has completely stopped water flow at Gold Portage. Pictures
were provided showing Gold Portage before and after the beaver dam. The Koochiching
County Board made a request last year to have the dam removed but received no support
from the DNR or NPS to remove the dam. Voyageurs National Park (VNP)
Superintendent provided a written briefing with the Park’s position to allow the beaver
dam to remain. The National Park Service will not intervene in natural, biological or
physical processes except if directed by Congress, in some emergencies in which human
life and property are at stake, to restore a natural ecosystem function that has been
disrupted by past or ongoing human activities or when a park plan has identified the
intervention as necessary to protect other park resources or facilities. The situation in
Gold Portage does not meet any of these criteria and therefore no
action will be taken to remove the dam. It was also stated that the beaver dam is located
in St. Louis County. Lee Grim representing the Rainy Lake Board of Control brought Mr.
Burchell’s concerns to the Board where they were discussed on May 6, 2004. Information
was received from the Army Corps Technical Engineer stating that the beaver dam at
Gold Portage does not impact lake levels as it provides only minor out flow. Mr.Burchell
did not raise the concern of lake levels as he understood that this flow has little impact on
water levels. Various members of the public attending the Board meeting raised their
concerns and requested this dam be opened up. This area is used by many people for
fishing and other recreational activities. This area contained navigable waters before the Park and at the time the Park was established and should remain as navigable waters and a recreation area. In addition, the natural flow helps keep the water from becoming stagnant. Lee Grim stated that the natural flow can also have a negative effect on water quality by bringing algae bloom into Black Bay. The question was asked who the Park was for – people or the beaver.
Park representatives stated that water levels are coming up and the pressure on the dam
may open it naturally. Others felt that the beaver will just work harder to build the dam
higher and bigger. Commissioner Lepper stated that though the beaver dam is in St.
Louis County, the situation also impacts Koochiching County. In addition, the Park is
owned by the people and should be managed as such. The dam should be opened and
remain open. It is apparent that nothing will get done through local park management so
he suggested seeking congressional support on the matter. Commissioner Hanson felt
seeking congressional support to remove beaver in Koochiching County will be a
difficult barrier and felt maybe it should be approach as a state water jurisdiction matter.
However, he mostly felt it is just a common sense matter and through local cooperation
the dam should be removed. Commissioner Adee referencing an earlier statement by the
VNP Superintendent that beaver in the park is returning to the time of the voyageur,
stated that the voyageurs trapped the beaver which naturally controlled and managed the
population. Commissioner Chezick stated that the County is an arm of the State and
current law has Minnesota with jurisdiction over the water. Based on State law, action
could be taken at the County level to remove the dam.

2004/05-32 Motion by Hanson, seconded by Lepper requesting the support of the St. Louis County Board and State and Federal representatives to remove a beaver dam located in Gold Portage in Voyageurs National Park which has negatively impacted water flow for Kabetogama Lake in St. Louis County and Rainy Lake in Koochiching County thereby ruining a scenic area and fishing ground for visitors and with said appeal made to the State and Federal representatives due to lack of support by Voyageur National Park officials to remove the beaver dam. Voting yes: Chezick, Lepper, Adee, Hanson. Motion carried.

000 The Board Chair called for public comment at 12:10 p.m. Larry Beach felt residents should be able to vote on the Jackfish Sewer Project, questioned how the total cost of the project could be known without the easements being in place and again requested that original systems be allowed to remain in place for a few years as a backup system in case something goes wrong with the sewer. Paul Mielke listed violations of law which he feels were done in the process of establishing the sewer project and regretfully stated that these violations will cost the County millions. The law is the law and it should have been followed. Mark Trompeter stated that this project is a costly mess and as a taxpayer feels it is a bad situation. More care should have been taken in the process to establish a true cost. Darlene Stoiber also stated concern with the project process and stated her damages will be about $27,000. Elaine Beach asked when the project engineer was going to work with the property owners on their easements. Walt Whitbeck thanked Commissioner Chezick for stating his concerns and objection to the project. The Board Chair closed public comment at 12:23 p.m.

2004/05-33 Motion by Lepper, seconded by Adee to close session at 1:40 p.m. to discuss litigation strategy for threatened litigation. Attending the closed session were Commissioners Chezick, Lepper, Adee and Hanson and Attorney Steve Fecker. Voting yes: Chezick, Lepper, Adee, Hanson. Motion carried.

2004/05-34 Motion by Lepper, seconded by Adee to open session at 2:10 p.m. Voting yes: Chezick, Lepper, Adee, Hanson. Motion carried.

2004/05-35 Motion by Adee, seconded by Hanson that upon review in committee of the whole, to add a request for a lease agreement for a shooting range to the agenda. Voting yes: Chezick, Lepper, Adee, Hanson. Motion carried.

2004/05-36 Motion by Lepper, seconded by Adee authorizing the Land Commissioner to draft a lease agreement to allow the Littlefork Gun Club to utilize tax-forfeited land to establish a public shooting range contingent on CUP approval by the Planning Commission and with the final lease agreement to come before the County Board for approval. Motion further waives the CUP permit fee and establishes a minimal lease fee. Voting yes: Chezick, Lepper, Adee, Hanson. Motion carried.

2004/05-37 Motion by Hanson, seconded by Lepper that due to safety issues, authorizing the Complex Superintendent to replace the range in the Jail with a cost not to exceed $3,600 and upon researching best price including used options and within specifications required for a Jail. Funding to come from the Sinking Building Account. Voting yes: Chezick, Lepper, Adee, Hanson. Motion carried.

2004/05-38 Motion by Adee, seconded by Hanson to adjourn the meeting at 2:55 p.m. Voting yes: Chezick, Lepper, Adee, Hanson. Motion carried.