REGULAR MEETING OF THE KOOCHICHING COUNTY BOARD OF COMMISSIONERS
Held on Tuesday, June 7, 2005; 9:30 a.m.

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

MEMBERS ABSENT: None

OTHERS ATTENDING: Einar Sundin, Doug Grindall, Richard Lehtinen, Mr. and Mrs. Walt Whitbeck, Mr. and Mrs. Larry Beach, Raoul Lufbery, Dale Klosner, Rod Flannigan, Attorney Steve Shermoen, Rod Otterness, Julie Schumacher, Paul Mielke; Reporters Laurel Beager, Roger Jerome and Mike Freeman

2005/06-09 Motion by Adee, seconded by Briggs to approve the agenda with additions and deletions. Voting yes: Hanson, Adee, Lepper, Briggs, Pavleck. Motion carried.

2005/06-10 Motion by Adee, seconded by Pavleck to approve payment of the Auditor claims in the amount of $38,151.97 and to approve payment of the County Board monthly expense claims in the amount of $7,607.57. Payment detail on file in the Auditor/Treasurer Department. Voting yes: Hanson, Adee, Lepper, Briggs, Pavleck. Motion carried.

2005/06-11 Motion by Pavleck, seconded by Briggs to approve the revised County Liquor Licenses and Regulations Ordinance #20 which provides for regulations of the issuance of County Liquor Licenses and regulates the operation of liquor establishment as authorized by M.S. 340 with revisions to include the addition of definitions and employment of minors; redefines eligibility of applicants, health department regulations and suspension/revocation of licenses. Voting yes: Hanson, Adee, Lepper, Briggs, Pavleck. Motion carried.

2005/06-12 Motion by Briggs, seconded by Lepper to defer a request by the International Falls 4th of July Commission for funding to a committee meeting for consideration in the 2005 budget. Voting yes: Adee, Lepper, Briggs, Pavleck; voting no: Hanson. Motion carried.

000 The Board Chair informed the Board that the application deadline for consideration in the 2006 State Bonding Bill is June 15, 2005 and requested authorization to submit an application for the Plasma Gasification Project in Koochiching County for consideration. Submission of an application is not a guarantee the project will be considered.

2005/06-13 Motion by Lepper, seconded by Briggs adopting the following resolution in support of a Plasma Gasification Clean Center Demonstration in Koochiching County and submission of an application for project consideration in the 2006 State Bonding Bill:

WHEREAS Koochiching County and other communities in northern Minnesota currently landfill municipal solid waste, construction waste, and solid waste from forestry operations; and

WHEREAS the long-term land filling of solid waste is detrimental to sensitive environmental resources in northern Minnesota; and

WHEREAS communities in northern Minnesota need low-cost, reliable energy resources to meet future need and enhance economic growth and development; and

WHEREAS Koochiching County is in communication with Phoenix Solutions Company, Distributed Generation Solutions, and a number of federal and state agencies to explore the possibility of a Plasma Gasification Clean Center Demonstration; and

WHEREAS the Clean Center would serve as a demonstration pilot to explore the economics, efficiency, and environmental benefits derived from the plasma gasification of solid waste; and

WHEREAS plasma gasification technology has been successfully employed in Europe and Japan and holds promise for development in the United States as an alternative energy resource; and

WHEREAS the Clean Center is projected to gasify ten tons of solid waste per hour, generating ten megawatts of electricity for local consumers and creating a ton of high-quality slag per hour with minimal pollutant emissions; and

WHEREAS state funding assistance will help to fund construction of the Clean Center Demonstration pilot and explore its benefits for electric generation and environmentally responsible solid waste disposal for communities throughout Greater Minnesota.

NOW THEREFORE BE IT RESOLVED that the Koochiching County Board of Commissioners supports the Plasma Gasification Clean Center Demonstration, and authorizes the pursuit of funds from the State of Minnesota to help cover the capital costs of developing this project. Voting yes: Hanson, Adee, Lepper, Briggs, Pavleck. Motion carried.

2005/06-14 Motion by Lepper, seconded by Pavleck authorizing the Highway Engineer to fill the vacant Heavy Equipment Operator position in Littlefork with vacancy due to a work related injury resulting in the person not able to perform the position’s duties with or without accommodations. Voting yes: Hanson, Adee, Lepper, Briggs, Pavleck. Motion carried.

2005/06-15 Motion by Pavleck, seconded by Adee authorizing an internal budget adjustment for the 2005 Environmental Service Department transferring $2,844 from 12-390.5001 to 12-710-001-5001 to recognize the amount of county levy dollars allocated as a match for the 2005 Natural Resources BSWR Grant as recommended by the Environmental Service Department. . Voting yes: Hanson, Adee, Lepper, Briggs, Pavleck. Motion carried.

2005/06-16 Motion by Pavleck, seconded by Adee to approve REZ 0502 for Tom Lundin, changing zoning from 0-1 to AF-1 for the parcel described as the SE ¼ and the South ½ of the NE ¼, Section 9, Township 69, Range 24 to allow for construction of a dwelling unit as recommended by the Planning Commission. Voting yes: Hanson, Adee, Lepper, Briggs, Pavleck. Motion carried.

2005/06-17 Motion by Briggs, seconded by Adee to approve CUP 0505 for Thomas Lynch on property described as the North ½ of the South ½ of the SW ¼ of the SW ¼, Section 10, Township 70, Range 24 to allow for the construction and operation of an automotive detail shop as a home occupation as recommended by the Planning Commission. Voting yes: Hanson, Adee, Lepper, Briggs, Pavleck. Motion carried.

2005/06-18 Motion by Lepper, seconded by Adee to approve the final Plat of Manitou Shores First Addition, PLT 0403 for John Hepler and Jong Sook Chong as recommended by the Planning Commission. Voting yes: Hanson, Adee, Lepper, Briggs, Pavleck. Motion carried.

2005/06-19 Motion by Lepper, seconded by Pavleck to approve an updated service contract in the amount of $18,840 with Environmental Financial Group for financial and assessment work for the Jackfish Bay Sewer Project as recommended by the Environmental Service Director. Voting yes: Hanson, Adee, Lepper, Briggs, Pavleck. Motion carried.

000 The Environmental Service Director informed the Board that one of the four firms proposing a service contract for engineering/inspection of the Jackfish Bay Sewer Project was in the audience at no request of the County but attended to represent the firm’s proposal should the Board have any questions. The Environmental Service Director, due to the questions and concerns raised by Board members, recommended that an interview team be assembled to interview the four firms submitting proposals to examine their proposed service and costs to what is needed for the project so that a firm comparative and recommendation can be provided to the Board.

2005/06-20 Motion by Briggs, seconded by Lepper accepting the recommendation for the Environmental Service Director to assemble an interview team to meet with the four firms submitting service proposals for engineering/inspection for the Jackfish Bay Sewer Project and to provide a firm comparative and recommendation to the Board at their June 14, 2005 meeting. Voting yes: Hanson, Adee, Lepper, Briggs, Pavleck. Motion carried. (The Board Chair selected Commissioners Lepper and Briggs to sit on the interview team.)

000 The Environmental Service Director informed the Board that the MPCA is reluctant to approve an alternative location for the Sewer Project storage tank based on the fact that there is opposition to the project and that a change of location may be challenged. With this result, the County’s options are left to dealing with acquisition of private property for the storage tank location in the current project plan. Though the current location involves two private properties, a slight change to relocate the manhole would result in the full tank location impacting only one property, which is on the market at this time. Moving the manhole has been determined to be in the scope of the current project plan. It is recommended that the County make an offer to purchase the property already on the market and split off the area needed for the storage tank and resell the remaining portion. The property has been on the market with no offers to date at a listed price of $130,000. Taking this option would avoid having to commence with condemnation proceedings. If this recommendation is approved the Director would work with the Army Corp on accessing allowable grant funds for the purchase of land for the project. If an offer is made, the offer would be guided by the appraisal value and listing price.

2005/06-21 Motion by Lepper, seconded by Briggs authorizing the County to enter into a purchase agreement with Anthony and Amber Anderson for purchase of their property currently on the market for the purpose of acquiring property to locate the storage tank for the sewer project and with the intent to resell the remaining property and with a purchase offer contingent on the appraisal value and listing price and the purchase agreement subject to final approval of the County Board. Voting yes: Hanson, Adee, Lepper, Briggs, Pavleck. Motion carried.

2005/06-22 Motion by Adee, seconded by Lepper to add to the agenda the response from Forest Capital upon receipt of the County Board’s letter to request a meet. Voting yes: Hanson, Adee, Lepper, Briggs, Pavleck. Motion carried.

000 The Board Chair informed the Board that Forest Capital Corporate Headquarters contacted him after receiving the Board’s letter to request a meeting to discuss mutual benefit scenarios with regards to the utilization of the lands they purchased from Boise Cascade which are located in Koochiching County. He was informed that the Firm’s local representative was authorized to meet with the County to discuss options.

2005/06-23 Motion by Lepper, seconded by Briggs authorizing the Board Chair to appoint a Committee to meet with Forest Capital to discuss land options. Voting yes: Hanson, Adee, Lepper, Briggs, Pavleck. Motion carried.

000 A draft executive summary of a market analysis for rental housing in the former Alexander Baker School was presented to the Board by representatives of the Koochiching County Housing Coalition, of which members were present in the audience. Julie Schumacher and Rod Otterness represented the Coalition at the meeting. The Coalition was formed in May 2004 at the support of the local units of government. The Coalition recently completed its action plan with the following priorities: 1) develop affordable new rental housing in the County; 2) expand housing for seniors; 3) develop a rental rehabilitation program with International Falls having the greatest need in this area. With affordable new rental housing being the number one priority and a community effort to use the former Alexander Baker School building, an interested developer conducted an analysis for creating rental units in the facility with the outcome positive. At this time the developer is establishing a development plan to present to the County and City of International Falls with the development relying on federal and state housing initiatives and support from the local units of governments. Because there is an upcoming deadline on a possible source of funding for this project, the developer is looking to set a meeting with the City and County by next week to propose the plan (tentatively looking at meeting with the City on June 13 and the County on June 14). The Board stated appreciation for the Coalition’s efforts in taking the lead to improve housing in the County.

000 The Board Chair called for public comment at 11:25 p.m. Larry Beach again addressed the Board that property owners wanting more than $1 for their easements are not getting responses from the Board or legal counsel. Walt Whitbeck stated concern with the project moving forward when nothing is settled with the tank location and the easements. He stated that no one can tell where this project starts and where it ends. Elaine Beach stated she received a phone call from a property owner concerned about their easement and that this person could not get answers to their easement questions. Einar Sundin asked the Board again to consider placing 911 signage in the County as a matter of public safety and informed the Board that the microphone system in the Boardroom is inadequate for the public to hear conversation at the Board table because the members do not always speak in the microphone. He suggested lapel microphones. Paul Mielke read a letter to the Board in response to statement blaming the increased cost of the sewer project on those opposing the project and blaming the County for not following legal processes and not obtaining the easements. In regards to his easement, he feels that if the County is going to put a public sewer line on his property he wants just compensation based on the value of his lakeshore property. With no more comment, the Board Chair closed public comment at 11:40 a.m.

2005/06-24 Motion by Adee, seconded by Lepper to adjourn the meeting at 11:40 a.m. Voting yes: Hanson, Adee, Lepper, Briggs, Pavleck. Motion carried.