SPECIAL MEETING OF THE KOOCHICHING COUNTY BOARD OF COMMISSIONERS
Held on Tuesday, June 14, 2005; 10:00 a.m.

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

MEMBERS ABSENT: None

OTHERS ATTENDING: Einar Sundin, Doug Grindall, Jaci Nagle, Dennis Hummitzsch, Susan Congrave, Rod Otterness, John Errigo, Paul Eklund, several members of the AB/Backus Group, David Trompeter, Larry and Elaine Beach, Mark Trompeter, Richard Lehtinen, Steve Shermoen, Rod Flannigen, Dale Klosner, Melissa Fuller; Reporters Laurel Beager and Roger Jerome

2005/06-25 Motion by Adee, seconded by Briggs to approve the agenda with additions and deletions. Voting yes: Hanson, Adee, Lepper, Briggs, Pavleck. Motion carried.

2005/06-26 Motion by Lepper, seconded by Adee to approve the minutes from the June 2 special meeting and the June 7 regular meeting. Voting yes: Hanson, Adee, Lepper, Briggs, Pavleck. Motion carried.

2005/06-27 Motion by Lepper, seconded by Adee authorizing Board Chair’s signature to the Auditor’s May Vendor Payment Listing verifying its review. Voting yes: Hanson, Adee, Lepper, Briggs, Pavleck. Motion carried.

2005/06-28 Motion by Pavleck, seconded by Lepper to accept low bid in the amount of $97,682.25 from Traffic Marking Service, Inc. for the County’s road striping as recommended by the Highway Engineer. Voting yes: Hanson, Adee, Lepper, Briggs, Pavleck. Motion carried.

2005/06-29 Motion by Pavleck, seconded by Lepper authorizing out-of-state travel for the Information System Manager to attend a four-day ESRI International/Education User Conference (for GIS users and managers) with airfare, lodging, meals and conference registration covered by the MN Extension Service. Motion further requests the Information Systems Manager to report back to the Board on the benefits received from the Conference for the County and 4-H Program. Voting yes: Hanson, Adee, Lepper, Briggs, Pavleck. Motion carried.

2005/06-30 Motion by Pavleck, seconded by Lepper to approve a Conveyance of Tax Forfeited Land Application for a public use for the City of International Falls for recreational purposes described as the east forty feet of Lots 1 through 16, Block 6, Plat of Fairview Addition and all of the vacated road east of Block 6, Plat of Fairview Addition as recommended by the Land Commissioner. Voting yes: Hanson, Adee, Lepper, Briggs, Pavleck. Motion carried.

2005/06-31 Motion by Adee, seconded by Lepper acknowledging the minutes from the Professional Advisory Committee meeting of May 31, 2005. Voting yes: Hanson, Adee, Lepper, Briggs, Pavleck. Motion carried.

000 The Health Director requested approval of a Memorandum of Intent between the University of Minnesota Extension Service and the County to place a .75 University Nutrition Educator position in Koochiching County which will be housed in the Health Department. For placement of this position, the Memorandum would require the County to furnish $13,000 of in-kind services which will be covered by housing the position in the Health Department according to the Director.

2005/06-32 Motion by Adee, seconded by Pavleck to approve a Memorandum of Intent between the University of Minnesota Extension Service and the County to place a .75 University Nutrition Educator position in Koochiching County which will be housed in the Health Department contingent on no cash match requirement by the County and review of the Memorandum by the County Attorney. Voting yes: Hanson, Adee, Lepper, Briggs, Pavleck. Motion carried.

2005/06-33 Motion by Lepper, seconded by Adee to reduce the regular work schedule for permanent part time employee Donita Ettestad from 30 hours a week to 24 hours a week for the months of June through September with the Department Head authorized to increase the hours during these months up to 30 hours a week if needed. The change in the work schedule is due to reduction of service needed for the ENABL Program during non-school months. Voting yes: Hanson, Adee, Lepper, Briggs, Pavleck. Motion carried.

000 John Errigo of Metro Plains, Inc. met with the Board to explain the proposal to take ownership of the Alexander Baker Building in International Falls to develop it into affordable rental housing units. Mr. Errigo provided background on his company and two similar rental housing developments in historical school buildings in Minnesota and North Dakota. This proposal will develop the Alexander Baker Building, not the Backus Facility. The two facilities are owned by the Backus/AB Group and share a heating system so ownership and heating system issues will need to be worked out. Parking will also need to be resolved as some of the current parking space will be taken to provide green space to give the housing facility a residential look. A draft financial plan was reviewed with the Board at a project cost of $4,612,577 with revenue coming from state housing funding, federal tax credits, investment from Metro Plains’ partnerships and local participation in the amount of $500,000. Construction cost is $2,940,000. At this time there is an application deadline of June 28th to request funding from the Minnesota Housing Finance Agency and the company would like to submit a funding application for this project but such application would require the support of the City and County for this project. With regards to the project timeline, best case scenario is if everything falls into place this year, including funding, could be looking at construction next year. However, housing finance funding is very competitive so the project may be delayed until funding is available. The City of International Falls Administrator informed the Board that the City is supportive of this concept as it meets housing needs identified by the Housing Coalition as well as proposes to save a historical building that at some future point in time may be a cost item for the City and County in demolition. With investment of private, state and federal dollars, the City supports the local participation but would be seeking joint support by the County in this project. In response to a question asked, Mr. Errigo stated that if there is a mortgage foreclosure, the property would revert to the bank as would be done in any foreclosure. However, there will be many stakeholders in this project watching their investments so in depth analysis will be done to ensure investors a successful project. Again because the deadline for application for state housing finance is due on June 28, the developer would need support of the County and City to submit with their application. Though the details of how the County and City would provide the local match may not be decided by the application deadline, an agreement to support the project and local participation could be achieved in time. It was agreed that two Commissioners would meet with representatives of the City of International Falls to discuss a mutual agreement of support and local participation and make a recommendation to the Board at its June 21, 2005 meeting. The Board Chair would reserve time at its June 28th meeting if more time was required to reach an agreement with the understanding this is also the application deadline. The Board Chair appointed Commissioners Pavleck and Lepper to represent the Board in meeting with the City of International Falls to come up with an agreement of support for recommendation to the Board.

000 The Board Chair called for public comment: Elaine Beach referenced an article in last week’s Daily Journal reporting on the number of easements for the sewer project. She stated that all they hear is people are not giving an easement for $1. She also questioned whether the current inspector for the sewer project was qualified and if he was working for Ayres. Mark Trompeter again asked that the Board provide County staff to go out with him to take water samples to use as a benchmark to test the sewer project (before and after results). The Board Chair stated no county staff will be provided. Mr. Trompeter stated their confidence of winning the appeal as the Board is breaking the law and that they will take legal action against the Commissioners also. Larry Beach asked Commissioner Pavleck to explain his quote in the paper regarding easements and again stated concern that they are not getting response from the Board with their questions on this project. The Board Chair closed public comment at 11:45 a.m.

2005/06-34 Motion by Lepper, seconded by Adee authorizing payment to Itasca County in the amount of $564.00 to assist with funding to replace water monitoring equipment needed by the Big Fork River Board that was stolen (Director to verify if contribution is over and above any insurance reimbursement). Voting yes: Hanson, Adee, Lepper, Briggs, Pavleck. Motion carried.

000 The Environmental Service Director provided the Board drafts of a vacant parcel assessment deferral policy, a guest cabin assessment policy, and a new construction assessment guideline as recommended by Environmental Financial Group, Inc. for the Jackfish Sewer Project. These policies were provided as a result of the discussion and conclusion of the May 17, 2005 assessment hearing. Because the Board just received the drafts, they felt time was needed for the Board members and the public to review the information.

2005/06-35 Motion by Lepper, seconded by Pavleck to defer consideration of the draft vacant parcel assessment deferral policy, a guest cabin assessment policy, and a new construction assessment guideline as recommended by Environmental Financial Group, Inc. for the Jackfish Sewer Project until the June 21 meeting to allow more review time for the Board, the County Attorney and the public (Director to attempt to get notice out to the public to view the drafts prior to Board consideration on June 21st). Voting yes: Hanson, Adee, Lepper, Briggs, Pavleck. Motion carried.

000 The Environmental Service Director informed the Board that the nine member team interviewed all four firms submitting a proposal for engineering and inspection service for the Jackfish Sewer Project. The Team recommends Benchmark Engineering and is seeking support from the Board on this recommendation so a service contract can be finalized. The Board was informed that from the quote submitted, adjustments will be made to add in suggested services by the Team including telemetry and public relations.

2005/06-36 Motion by Pavleck, seconded by Lepper to approve the recommendation to obtain engineering/inspection services of Benchmark Engineering for the Jackfish Sewer Project with a contract and price to be negotiated for a recommendation to the Board at its June 21 meeting. Voting yes: Hanson, Adee, Lepper, Briggs, Pavleck. Motion carried.

2005/06-37 Motion by Lepper, seconded by Briggs to add discussion of a property owner’s interference with work on the Jackfish Bay Sewer Project in the UT 224 area to the agenda. Voting yes: Hanson, Adee, Lepper, Briggs, Pavleck. Motion carried.

000 Legal Counsel representing the Board on the Jackfish Sewer Project informed the Board from a report by the inspector and workers that a resident on UT 224 has been interfering with sewer work in that area and there is concern that an accident may occur as a result. Legal Counsel recommended that the Board ask the Court to issue an order to restrict what this property owner can and can not do in the project area so as not to interfere with or harass workers doing work for the sewer project as a matter of public safety. The Board Chair was not comfortable acting on this matter as an addition to the agenda. Legal Counsel stated that this property owner has a harassment petition filed against a sewer project subcontractor to be heard by the Judge on June 21. It is recommended the County file its petition and request it be heard at the same time. For everyone’s best interest, this conflict needs to be resolved in quick fashion so things do not escalate and cause greater harm to either party and/or the public.

2005/06-38 Motion by Pavleck, seconded by Adee to authorize legal counsel to submit on the County’s behalf a petition to the Court against a certain property owner to refrain them from interfering with work and harassing workers doing work on the sewer project in the sewer project area and currently in and around the UT 224 area due to safety concerns. Voting yes: Adee, Lepper, Briggs, Pavleck; voting no: Hanson. Motion carried.

2005/06-39 Motion by Adee, seconded by Lepper to adjourn the meeting at 2:20 p.m. Voting yes: Hanson, Adee, Lepper, Briggs, Pavleck. Motion carried.