SPECIAL MEETING OF THE KOOCHICHING COUNTY BOARD OF COMMISSIONERS
Held on Tuesday, August 23, 2005; 10:00 a.m.

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

MEMBERS ABSENT: None

OTHERS ATTENDING: Susan Baratono, Jerry Shermoen, Jerry Andre, Jaci Nagle, Doug Grindall, Duane Nelson, Terry Murray, Richard Lehtinen, Steve Shermoen, Einar Sundin, Dennis Hummitzsch, Bobbi Ready, Gordon Routier, Steve Gunberg, Karen Hedke, Gretchen Davis, Jim Nelson, Tara Nelson, Walt Whitbeck, Dan Griffith, Mark Trompeter, Larry Beach, Len Millard, Paul Mielke, Marlene Bryan, Steve Fecker; Reporters Laurel Beager and Roger Jerome

2005/08-18 Motion by Adee, seconded by Lepper to approve the agenda with additions and deletions. Voting yes: Hanson, Adee, Lepper, Briggs, Pavleck. Motion carried.

2005/08-19 Motion by Briggs, seconded by Adee to approve the minutes of the August 9, 2005 special meeting. Voting yes: Hanson, Adee, Lepper, Briggs, Pavleck. Motion carried.

2005/08-20 Motion by Lepper, seconded by Adee to approve payment of the Auditor claims in the amount of $27,003.96, to approve payment to Flaherty and Hood in the amount of $1,069.99 for July lobbyist services, to approve payment of the Highway claims in the amount of $88,362.93, to approve payment of the Health claims in the amount of $12,670.24 and to approve payment of Community Service Department’s financial and social service program claims and administrative claims as presented. Payment detail is on file in the Auditor/Treasurer, Highway, Public Health and Community Service Departments respectively. Voting yes: Hanson, Adee, Lepper, Briggs, Pavleck. Motion carried.

2005/08-21 Motion by Pavleck, seconded by Briggs adopting the following resolution to approve a Federal Aviation Grant for the International Falls/Koochiching Airport Improvement Project:

To accept a federal Airport Improvement Grant issued by the Federal Aviation Administration for the purpose of constructing an extension to the main runway at Falls International Airport and for the purpose of constructing an airfield perimeter fence; and

To authorize the County Board Chair and County Attorney to execute the above grant documents on behalf of Koochiching County when they are issued by the Federal Aviation Administration; and

To authorize the Minnesota Commissioner of Transportation to act as agent for Koochiching County in the implementation of said grant; and

That this resolution shall not apply to any grant agreement that does not include funding arrangements for the said stated runway extension. Voting yes: Hanson, Adee, Lepper, Briggs, Pavleck. Motion carried.

000 Representatives of the Airport Commission informed the Board that state wetland credits designated in Koochiching County are needed for the Airport Runway Project’s wetland mitigation plan which must be submitted and approved before consideration is given to the federal grant for this project. The services of the former Soil and Water District Technician, now a county forester, are being requested to assist the Airport Commission with the mitigation plan. The Board agreed to review the request with the Land Commissioner under Land and Forestry Business scheduled later in the meeting.

000 Attorney Jerry Shermoen informed the Board that due to a conflict of interest with a current Torrens Title, he needs to resign as the Koochiching County Examiner of Titles, for which he held title for approximately 30 years. Attorney Shermoen explained that there are two systems to establish property title. One is through abstracting and the other is through Torrens Title which is through the Court system. As required under law for Torrens Title, an Examiner of Titles is appointed by the Judge. If the appointment is from the private sector, the Judge makes the appointment directly. However if the County Attorney is appointed by the Judge, the County Board must confirm the appointment. In light of the current situation, the County Attorney has agreed to take the appointment and the Judge has appointed her. Commissioner Lepper expressed concern with adding more work to the County Attorney’s Office and whether she would have the time to provide this title legal service and asked if Attorney Shermoen would retain the Title of Examiner once the conflict is dissolved. Attorney Shermoen stated that once this particular case is resolved, he would be glad to accept an appointment as a Deputy Examiner of Titles to assist the County Attorney at the same terms in which he held the County Examiner title, at no fee.

2005/08-22 Motion by Adee, seconded by Pavleck accepting the resignation of Attorney Jerry Shermoen as Koochiching County Examiner of Titles due to a conflict of interest and to confirm the Judge’s appointment of the Koochiching County Attorney as the County Examiner of Titles in and for Koochiching County and with the intention of the County Board to request that Attorney Jerry Shermoen accept the appointment of Deputy Examiner of Titles at the time that a conflict of interest no longer exists to assist the County Attorney and County Recorder due to his extensive knowledge in Torrens Title. The Koochiching County Board recognized Attorney Shermoen’s long standing service to the County as Examiner of Titles with sincere appreciation. Voting yes: Hanson, Adee, Briggs, Pavleck; voting no: Lepper. Motion carried.

2005/08-23 Motion by Pavleck, seconded by Lepper to approve grant from the Minnesota Department of Veterans Affairs in the amount of $2,800 for office operational improvements which will be used for computer system/equipment replacement as recommended by the Veterans Officer and I.S. Manager with no local match required for the grant. Voting yes: Hanson, Adee, Lepper, Briggs, Pavleck. Motion carried.

2005/08-24 Motion by Lepper, seconded by Pavleck awarding low bid to Wagner Construction in the amount of $229,220.24 for SAP 36-641-01 (CSAH 41) for grading, storm sewer, curb and gutter, aggregate base and bituminous surfacing as recommended by the Highway Engineer. Voting yes: Hanson, Adee, Lepper, Briggs, Pavleck. Motion carried.

000 At the request of the Highway Engineer, the Board Chair set a public informational meeting on Tuesday, September 27, 2005, 6:30 p.m., at Rainy River Community College to review and receive public input on proposed road improvement projects for County Road 107 and CSAH 2 from TH 332 to TH 11/71. Highway Engineer will advertise the meeting and take additional steps to notify property owners in the proposed road project areas.

2005/08-25 Motion by Lepper, seconded by Adee to approve an extension of the current State Off Highway Vehicle Enforcement Grant from June 1, 2005 through June 30, 2007 with the County to receive $10,471 each year with no local match as recommended by the Sheriff. Voting yes: Hanson, Adee, Lepper, Briggs, Pavleck. Motion carried.

2005/08-26 Motion by Lepper, seconded by Pavleck acknowledging notification from the Sheriff of his resignation from his elected term of office as of January 1, 2006 and with appreciation for his long standing service to the County as a law enforcement officer. Voting yes: Hanson, Adee, Lepper, Briggs, Pavleck. Motion carried.

000 With announcement of his resignation, the Sheriff presented the Board with a recommendation to appoint his Chief Deputy as Sheriff for his remaining term of office and subsequently fill the Chief Deputy position. Minnesota law requires the County Board shall fill the vacancy by appointment. Board members stated their position that they were not ready to make a decision today as wanted more time to review information and options.

2005/08-27 Motion by Lepper, seconded by Briggs to table the recommendation of the Sheriff to appoint the Undersheriff to finish out his term of the Office of County Sheriff with the Board to review information and consider their options for filling the vacancy in a committee meeting to be scheduled in September. Voting yes: Hanson, Adee, Lepper, Briggs, Pavleck. Motion carried.

000 The Board was informed that Laurie Youso will resign as a County social worker as of October 9, 2005. The Community Service Director stated that School District 361 will no longer contract with the County for a social worker in the school based on their decision to hire their own social worker. The Director stated that there is still a remaining case load for this County social worker position and recommends the vacancy be filled to fulfill the remaining case load and pick up other case loads in the social service unit. The Director stated that even though the funding from the school for this position would be lost the area of work performed by this position will bring in additional dollars so there would be no increase in county dollar cost for the position.

2005/08-28 Motion by Pavleck, seconded by Lepper to fill a social worker position in the Community Service Agency due to the above resignation and as recommended by the Community Service Director. Voting yes: Hanson, Adee, Lepper, Briggs, Pavleck. Motion carried.

2005/08-29 Motion by Lepper, seconded by Briggs to renew the Minnesota Chippewa Tribe Non-Financial Employment Service Agreement as recommended by the Community Service Director. Voting yes: Hanson, Adee, Lepper, Briggs, Pavleck. Motion carried.

2005/08-30 Motion by Lepper, seconded by Adee to approve payment of burial case NCN in the amount of $480.00 and to accept the following Foster Day Care and Day Care Licensing recommendations: case #05345 relicensing for family day care for ten children; case #20615 relicensing for family day care for ten children; case #29215 closing home for family day care at provider’s request; case #50779 closing home for child foster care and family day care at provider’s request and case #73345 relicensing for family day care for twelve children. Voting yes: Hanson, Adee, Lepper, Briggs, Pavleck. Motion carried.

2005/08-31 Motion by Adee, seconded by Lepper granting right of way to North Itasca Electric Coop for placement of underground 7.2 KV transmission line crossing the NW ¼ of the NW ¼ and the NE ¼ of the NW ¼ of Section 22, Township 151N, Range 29 W and within the requirements recommended by the Land Commissioner. Voting yes: Hanson, Adee, Lepper, Briggs, Pavleck. Motion carried.

000 The Land Commissioner reviewed the result of the August 3, 2005 timber auction: 17,940 cords were sold for a sale value of $926,622 with all tracts sold during the sale. Land Commissioner reported that net revenue at this time is above 2004 but still below 2003.

2005/08-32 Motion by Pavleck, seconded by Adee accepting the resignation of Richard Bing as County Forester on September 16, 2005. Voting yes: Hanson, Adee, Lepper, Briggs, Pavleck. Motion carried.

2005/08-33 Motion by Pavleck, seconded by Lepper authorizing the Land Commissioner to fill a vacant forester position as a result of the above employment resignation (accounts for possible internal movements through posting and filling remaining vacant position). Voting yes: Hanson, Adee, Lepper, Briggs, Pavleck. Motion carried.

000 Board members reviewed the Airport Commission’s request for state wetland credits for the mitigation plan for the Airport Improvement Project with the Land Commissioner and the need for one of his personnel to assist with the plan. Land Commissioner informed the Board that he was aware of this need and supported use of the Department’s wetland credits and personnel.

2005/08-34 Motion by Lepper, seconded by Pavleck to add a letter of support for the wetland mitigation plan for the Airport Improvement Project to the agenda. Voting yes: Hanson, Adee, Lepper, Briggs, Pavleck. Motion carried.

2005/08-35 Motion by Lepper, seconded by Pavleck authorizing the Land Commissioner to submit a letter of support to the appropriate parties on behalf of the Koochiching County Board authorizing the use of the Department’s banked wetland credits for mitigating wetlands for the Airport Improvement Project. Voting yes: Hanson, Adee, Lepper, Briggs, Pavleck. Motion carried.

2005/08-36 Motion by Adee, seconded by Lepper acknowledging a letter and petition opposing the Planning Commission’s recommendation to grant CUP #0505 for a bed and breakfast business in the residence of Jeff and Dana Bartheld. Voting yes: Hanson, Adee, Lepper, Briggs, Pavleck. Motion carried.

000 The Environmental Service Director and Legal Counsel for the Jackfish Bay Sewer Project presented a request to the Board to authorize condemnation proceedings on four parcels of property in order to acquire easements needed to construct the Jackfish sewer line. These four properties have mainline routes where no alternative routes are possible and that condemnation is limited to only enough land to be able to provide sewer service. Representatives stated that these property owners were previously contacted to reach a settlement but no agreement was reached so condemnation is being sought as a last resort. Board members expressed concern that these four property owners were not contacted in proper fashion that a request was before the Board today to begin condemnation proceedings for their property. Board members also expressed concern that condemnation should be the very last resort and more effort should be made to reach a settlement. Representatives stated that property owners were aware of the County’s position and intent through the last ditch effort to obtain easements from property owners as reviewed and approved in July. Board members asked if directional drilling was reviewed with the property owners. Representatives stated that at this time the contractor was not able to provide a guarantee for directional drilling with regards to where it can be done but will be able to provide this information by the end of September. Representatives stated that the request to begin condemnation proceedings allows the process to begin with the intent to continue negotiations for settlement that is allowable in the project plan. Because these easements involve the main line, the property has to be acquired so construction of the system is not delayed. Commissioner Lepper felt that one last attempt should be made with these property owners including providing information on directional drilling and that if no conclusion is reached at this point, he will support the request for condemnation proceedings. Again it was stated that directional drilling options are not known at this time.

2005/08-37 Motion by Adee, seconded by Lepper directing one last attempt be made to meet with the four property owners which were presented to the Board to begin condemnation proceedings for a portion of their property for the main sewer line for the Jackfish Bay Sewer Project to discuss easement and line location for negotiating an agreement with notice to come back to the Board as to the results of this last attempt effort and consideration for commencing with condemnation. Voting yes: Adee, Lepper, Briggs, Pavleck; voting no: Hanson. Motion carried.

000 The Environmental Service Director provided an unanimous recommendation from the Planning Commission granting CUP #0505 for a two-unit bed and breakfast business in the residence of Jeff and Dana Bartheld at 3069 Town Road 225. This conditional use permit was approved as a home occupation requiring no zoning change from R1 as the residents must live in the home to operate this type of business (versus a commercial type business which does not require the occupancy of the resident). The Planning Commission held two hearings on this matter and due to questions and concerns raised at the first hearing; the applicant scaled the request down to two-units for the second hearing. Board members stated that they received calls on this issue and many from neighbors not supporting the business in this area. The Board Chair called for public comment. Bobbi Ready stated her opposition as they have grown accustom to the peace and quiet in the neighborhood and fears the bed and breakfast business will create more noise due to entertainment of guest and also will add more traffic to an already congested area. Dr. Gordon Routier read a letter addressed to the Board with regards to his inquiry being denied to operate a chiropractic business in this residential dwelling but a bed and breakfast business was approved for this same dwelling. Steve Gunberg referenced the petition submitted earlier to the Board with sixty names opposing this bed and breakfast (B&B) in the current location. Mr. Gunberg expressed that he is not against B&Bs in large but feels this operation in an already congested neighborhood is not a good fit and is what the petition is telling the Board. Karen Hedke owner of a hotel business in town stated that they are having a difficult time filling their rooms and felt creation of B&Bs will take business from them. She also questioned whether these lodging facilities pay lodging tax. Gretchen Davis owner of a B&B in the Island View area for nine years explained that these lodging facilities attract clientele looking for a quiet and relaxed setting. Her business is successful and feels it is due to the desire of clients to be on the lake. With regards to the Bartheld’s request, she felt there should be more than 2 units and have full cooking accommodations to make for a good B&B and supports establishment of B&Bs in the County. Jim Nelson stated that he is not against B&Bs. He just feels this one does not fit in their neighborhood. He felt there was ambiguity in the county zoning leaving questions unanswered and felt the road would need improvement before more business could be added to this area. He felt the County should establish a B&B plan establishing guidelines for operation of these businesses so there are parameters for considering location of these businesses. Tara Nelson owner of a B&B in Ranier stated her support for another B&B on the lake and reiterated that clientele seeking this type of lodging facility want quiet and solitude. Walt Whitbeck did not feel a two-unit with continental breakfast qualified as a B&B. Dan Griffith, legal counsel for the applicant, stated that his clients did not think there was an issue with this. Before approaching the County, they sent a letter to neighbors seeking their opinion and did not get the impression from responses or lack there of that there was an issue. The applicant also received unanimous support of the Planning Commission. In supporting economic development in the County, they do not see harm in this operation, only good. Board members stated that the request is hard to support when the vast majority of the property owners in the neighborhood are opposing it. The Board weighed the suggestion of coming up with guidelines for establishing B&Bs in the County to ensure they are acting in a uniform manner.

2005/08-38 Motion by Pavleck, seconded by Briggs to deny the recommendation of the Planning Commission in granting CUP #0505 to Jeff and Dana Bartheld for a Bed and Breakfast lodging business in their residence located at 3069 Town Road 225 and further, placing a moratorium on all Bed and Breakfast lodging applications until guidelines are established for operation of these businesses in the County. Voting yes: Hanson, Adee, Lepper, Briggs, Pavleck. Motion carried.

000 The Board Chair called for public comment at 12:53 p.m. Mark Trompeter informed the Board that the visit by Matt Gouin to discuss their easement for the sewer line was the first personal contact he and his wife have had since this project started and felt that as a property owner, it should not have taken this long. He stated that the Board discussed condemnation for four properties today and felt the Board should start the process for all the properties in which they have not obtained easements. He referenced statements in a recent court ruling supporting their appeal of this project under MN Statute and advised the Board to hold off until the court rules on their appeal. Larry Beach stated that he has been asking the Board all along to negotiate with them on their easement and reviewed language in law regarding negotiating in eminent domain proceedings. He also felt that the statements made by the person hired by the County to make one last effort to obtain easements were somewhat threatening. Len Millard stated his concern with the Planning Commission’s position on the B&B application when so many in the neighborhood were in opposition. Paul Mielke stated his displeasure with how the four people were notified that the Board was considering condemnation proceedings on their property at today’s meeting. He stated that people are not refusing an easement but are refusing to give it for $1.00 as it is not reasonable and is not negotiating. Marlene Bryan resented that Commissioners have not come to her residence to view the situation with regards to this sewer project and asked for clarification from Commissioner Pavleck with regards to a recent selling of property. Board Chair closed public comment at 1:05 p.m.

2005/08-39 Motion by Pavleck, seconded by Briggs to close the meeting at 2:25 p.m. to discuss labor relations strategy to begin negotiations for employee group settlements. Attending the closed session was the full County Board, County Coordinator and Attorney Steven Fecker. Voting yes: Hanson, Adee, Lepper, Briggs, Pavleck. Motion carried.

2005/08-40 Motion by Pavleck, seconded by Lepper to open the meeting at 3:45 p.m. Voting yes: Hanson, Adee, Lepper, Briggs, Pavleck. Motion carried.

2005/08-41 Motion by Adee, seconded by Briggs to adjourn the meeting at 3:45 p.m. Voting yes: Hanson, Adee, Lepper, Briggs; absent for vote: Pavleck. Motion carried.