REGULAR MEETING OF THE KOOCHICHING COUNTY BOARD OF COMMISSIONERS
Held on Tuesday, May 1, 2007; 9:30 a.m.

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

MEMBERS ABSENT: None

OTHERS IN ATTENDANCE: Dennis Hummitzsch, Joe Boyle, Susan Congrave, Ed Oerichbauer, Kim Nuthak, Richard Lehtinen, Shayne Rognerud, Terry Stone, Susie Braaten, Melisa Moon, Marsha Stuart, Vernon Swendsen, Tyler Davis, Larry Beach, Dwayne Skaro, Steve Blair, Barry Woods, David Amerud, John Bujold, John Kaviuk, Joanne Amerud, Larry Lennox, Duane Mannausau, Myrna Meadows, Jack Walls, Elaine Beach; Reporter Lisa Kaczke

2007/05-01 Motion by Adee, seconded by Pavleck to approve the agenda with additions and deletions. Voting yes: Lepper, Hanson, Adee, Briggs, Pavleck. Motion carried.

2007/05-02 Motion by Pavleck, seconded by Briggs to approve the minutes from the April 24, 2007 regular meeting. Voting yes: Lepper, Hanson, Adee, Briggs, Pavleck. Motion carried.

2007/05-03 Motion by Adee, seconded by Hanson to approve the employment separation of part time Correctional Officer Ron Hostetter as of December 13, 2006. Voting yes: Lepper, Hanson, Adee, Briggs, Pavleck. Motion carried.

2007/05-04 Motion by Adee, seconded by Briggs accepting the Personnel Committee’s recommendation to approve an updated and revised County Hiring Policy and Hiring Policy Information Packet providing updated information, change in the veterans preference application due to a law change, removal of the moving expense policy, revising the Hiring Under Grant policy and revising the pre-employment physical process to include allowing the physicals at either the International Falls Duluth Clinic or the Littlefork Medical Center and increasing the cap for the physical cost; to incorporate the revised Hiring Under Grant Policy into the County Hiring Policy for employment hires and the County Budget Guideline for service contract hires; approving the revised Temporary Hire Policy updating information and forms and providing flexibility to the pay rate application. Voting yes: Lepper, Hanson, Adee, Briggs, Pavleck. Motion carried.

000 At the request of the City of International Falls for two County Board members to sit on their Task Force for further review of the Burner Road Vacation request, the Board Chair appointed Commissioners Pavleck and himself as the County Board representatives.

2007/05-05 Motion by Hanson, seconded by Pavleck to approve payment of the monthly County Board expense claims in the amount of $9,012.01. Voting yes: Lepper, Hanson, Adee, Briggs, Pavleck. Motion carried.

000 At the request of the County Board, the Land Commissioner and KEDA Legal Counsel provided more information as the request by the City of International Falls to apply for conveyance of tax forfeited land for an authorized public use in the Job Z Zone/Industrial Park since all other land within the Zone was jointly owned by the City and County. It was explained that in contacting the State on the matter, that the application process allows for only one governmental unit to make application and by a letter submitted by the City of International Falls, it is their intent that one half interest is deeded to the County. The purpose for the application to retain this portion of tax forfeited land is to clear title to make way for potential development. The portion of land is an old railroad spur which abuts a parcel of property in the zone being looked at for development.

2007/05-06 Motion by Pavleck, seconded by Adee to approve the application request by the City of International Falls on behalf of the City and County for conveyance of tax forfeited land for a railroad spur across the North ½ of the NW ¼, Section 31, Township 71, Range 23 as described in the Certificate of Forfeiture, dated September 29, 1950 filed in the Koochiching County Recorder’s Office to clear title for the purposes stated in the application and as recommended by the Land Commissioner. Voting yes: Lepper, Hanson, Adee, Briggs, Pavleck. Motion carried.

2007/05-07 Motion by Adee, seconded by Pavleck to approve a two-year administrative services agreement with the Tri County Community Health Board allowing the Koochiching County Health Director to provide administrative services to the organization as recommended by the Health Director and upon approval of the agreement by the County Attorney. Voting yes: Lepper, Hanson, Adee, Briggs, Pavleck. Motion carried.

000 Representatives from the City of Ranier and the County’s Management Committee presented a report and recommendation to increase the water rates for the County-owned Sunset Cove Waterline customers to the same rates as set and proposed for the other customers using the Ranier Water System for the remainder of 2007 through 2009 and a recommendation to turn the Sunset Cove Waterline over to the Ranier’s Water System. As a result of the City of International Falls study and water rate increase recommendation, Ranier in turn received a recommendation for adjustment of their system’s water rates to ensure customers are paying what is necessary to pay the City of International Falls for water charges to the Ranier Water System and to cover Ranier’s cost for operation of their system. In doing so, the City of Ranier would apply the same rates to all users of their system, to include the Sunset Cove Waterline customers. In review of the three-party Sunset Cove Waterline Agreement, it was determined by the City of Ranier and the County Management Committee that the Agreement is no longer needed as in actuality the Sunset Cove Waterline is a part of the Ranier Water System and the City of Ranier controls the water system rates for the agreement. Therefore a recommendation was presented to contact the third party to the Agreement, the City of International Falls, to notify them of the intent to terminate the Agreement and turn the line over to the Ranier Water System, effective January 1, 2008.

2007/05-08 Motion by Pavleck seconded by Adee to approve water rates for the customers on the Sunset Cove Waterline for the remainder of 2007 as set by the City of Ranier as follows (quarterly billing): $66.36 minimum for the first 6,000 gallons; $20.00 escrow fee and $5.71 per 1,000 gallons after the minimum and thereafter for 2008 and 2009, at the same rates set by the City of Ranier for all other users of the Ranier Water System with the rates reflecting the change needed to cover increased charges by the City of International Falls to supply water to the Ranier Water System. Further, to accept the recommendation to turn the Sunset Cove Waterline over to the Ranier Water System and eliminate the three-party administration/maintenance agreement and to contact the City of International Falls of the intent to terminate the Agreement. Voting yes: Lepper, Hanson, Adee, Briggs, Pavleck. Motion carried.

2007/05-09 Motion by Pavleck, seconded by Briggs to approve a first payment of $9,416.40 and no more than $1,000 for a second payment to Western Lake Superior Sanitary Sewer District for two household hazardous waste collections as recommended by the Environmental Service Director. Voting yes: Lepper, Hanson, Adee, Briggs, Pavleck. Motion carried.

000 The Environmental Service Director submitted the recommendation of the Planning Commission to deny the request by Shayne Rognerud for REZ 0701/CUP 0701 for a six unit seasonal RV Park at 2987 County Road 20, PID 15-52-00081 without prejudice as the proposed use is a commercial intrusion in a predominately residential neighborhood and the zone change to RR-1 allows for a range of commercial uses that would be inconsistent with a desirable pattern of development in this neighborhood.

2007/05-10 Motion by Adee, seconded by Briggs accepting a petition signed by County residents in support of the zone change as requested by Shayne Rogernud for his development project. Voting yes: Lepper, Hanson, Adee, Briggs; abstaining: Pavleck. Motion carried.

000 Shayne Rognerud presented his project to the County Board as a small RV Park which will be a quiet operation and not cause a lot of traffic in the area. Support presented for the project was based on economic development including lake access areas for tourists and speaking to the quietness of RV Park operations. Also that Mr. Rognerud's property is adjacent the Highway, five acres in size, and a distance from the neighbors. Those opposing the project were property owners in the neighborhood who questioned the petition supporting the project as being those not living in the area and not directly affected. They also raised concerned that the peace and quiet of the neighborhood would be lost, will have strangers in the neighborhood, see a reduction of property value being adjacent to a RV Park and that the change in zoning allows for other commercial uses in a well established residential area. A member of the public questioned whether the rezoning change would allow Mr. Rognerud to put up seasonal cabins. The Zoning Technician clarified that only 1 guest cottage and the house is allowed and that the property owner would have to apply for a conditional use permit to establish rental cabins. One member of the public stated that there are several RV Parks already established in town and the operators can’t keep them full so adding one more won’t bring in more economic development. Commissioner Briggs felt that Mr. Rognerud has the opportunity to bring the plan back but should redo his business plan working with the neighbors to find resolution to their concerns. Commissioner Adee referenced Mr. Rognerud’s lack of following process in his development to date and could not support his business request at this time.

2007/05-11 Motion by Adee, seconded by Briggs accepting the recommendation of the Planning Commission to deny REZ 0701/CUP 0701 for Shayne and Annette Rognerud for a six unit seasonal RV Park at 2987 County Road 20, PUD 15-52-00081 based on use being a commercial intrusion in a predominately residential neighborhood and the zone change to RR-1 allows for a range of commercial uses that would be inconsistent with a desirable pattern of development in this neighborhood. Voting yes: Lepper, Hanson, Adee, Briggs; abstaining: Pavleck. Motion carried.

000 The Environmental Service Director presented a recommendation from the Planning Commission to approve REZ 0703/CUP 0702 for Barry and Lee Anne Woods for a resort type lodging facility on Slurpers Island, PID 15-65-00070 with 6 conditions. Mr. Woods presented his plan to the County Board, addressing concerns raised at the hearing. The project is an addition to his Ranier business, renting the island property for lodging only, no retail. The intent is to bring the guests from the Ranier business to the island property by boat so parking on the neighboring county road is not an issue. It is their intent to pay for sewer to the island and will put out buoys for safety concerns.

2007/05-12 Motion by Adee, seconded by Hanson accepting a petition signed by County residents opposing the Wood’s Development Project and submitting concern on the way public comment was handled at the hearing on this development project. Voting yes: Lepper, Hanson, Adee, Briggs, Pavleck. Motion carried.

000 A property owner in the area read aloud the petition from residents opposing the project and concerns about not being able to voice their opposition at the public hearing on this development project. There are 73 to 80 residents in this area that signed opposing this project and only 3 from the area signing a petition to support it. The property owners, residents, have concern that the use of this island for a lodging facility will make the area unsafe as the boat channel is very narrow. That the island itself is less than one half acre and their information concluded that the setbacks for the buildings on the island property do not meet code and that its elevation will not accommodate sewer in high water years. Also the island has only 1 dock but two are shown in the development plan. Those opposing the project felt the Planning Commission did not have all the facts and a site visit would have provided more facts and a better picture of the neighborhood’s concerns. The property owner closest in proximity to the island was very concerned with safety as this is a narrow boat channel and kids swim in this area. He provided pictures for the Board of the area and water channel. Property owners also stated that if you spot zone for this project, you will have to allow for everyone which will allow commercial development in all residential areas. The question was raised as to what square footage is required to have a resort setting and does this project meet the qualifications. Property owners questioned why the earlier development project was denied due to affects on the residential neighborhood but this one was approved. Supportive of Mr. Wood’s business ventures, a property owner felt it was just a bad spot. A property owner, in referencing earlier comment about the right of property owners to use their property, stated that Mr. Wood’s bought residential property in a residential area and shouldn’t be given the right to put commercial use in this established residential area. One property owner spoke to the zoning process and the difficulty in property owners having to present opposing views to a spot zoning request. The Board asked the Director if additional information was heard today than at the hearing on the project. The Director stated some was new information but the amount of opposition to the project and reasons were clear at the hearing. When asked, the Zoning Technician verified that a site visit was conducted and confirmed that the building setbacks are not to code but that this would have been an issue with the prior owner, not the new owner. Commissioner Pavleck supported the well run businesses of Mr. Woods but he could not ignore the number of people in the area that are opposed to this business development. He felt a policy of conducting site visits in controversial matters should be developed as he feels that if the Commission would have conducted a site visit some of the information brought out today would have been known prior to the Planning Commission’s action on the development request. He was also uncomfortable that not all comment was allowed at the hearing, understanding it was a difficult meeting to control due to high emotions. Commissioner Lepper asked if there was a sewer route to this island and the Director stated no and that directional drilling options would determine the route and easement with elevation being key to the location. Commissioner Adee referenced the 6 conditions set by the Planning Commission in approval of this project and based on the lodging being seasonal and adding a condition of a no wake zone in the channel, he felt conditions were in place to cover most of the property owners’ concerns. The Director stated that adding no retail sales on site should also be a condition. Commissioner Pavleck stated that the conditions do not limit the operation to summer only so lodging for ice fishing and snowmobiling in the winter months would also be allowed. Commissioner Briggs stated that Mr. Woods does a fine job in operation of his businesses and agreed the conditions should include a no wake zone in the channel. Commissioner Pavleck did not feel he could support the project as presented but would like the project reconsidered after a site visit is conducted and all public comment is heard by the Planning Commission. The Director stated that the 60 day rule would end on May 11 so for the Planning Commission to revisit the project it would require a notice of extension. The question was asked if a Conditional Use Permit could include a sunset provision so the operation could be revisited after some point in time and subject to approval for continued operation. The Director stated that law would not support this but could be a consideration if all affected were agreeable to this type of arrangement.

2007/05-13 Motion by Pavleck, seconded by Adee to return the recommendation from the Planning Commission to approve REZ 0703/CUP 0702 for Barry and Lee Anne Woods for a resort type lodging facility on Slurpers Island, PID 15-65-00070 for further evaluation to include a site visit, reconstituting the public hearing providing equal opportunity for public comment, determinations of setbacks and requirements for a lodging type operation as it relates to the property and buildings, and as it relates to the adjacent properties and after further evaluation of this information, to come back with the Planning Commission’s recommendation on the project within the required timeline. Voting yes: Lepper, Hanson, Adee, Briggs, Pavleck. Motion carried.

000 The Board Chair called for public comment at 12:45 p.m. Jack Walls agreed with the Board’s position that a site visit should be conducted and should be a part of the Planning Commission’s By-laws. Elaine Beach stated that the County Board should also conduct a site visit as the final authority approving zoning actions. With no other comment, the Board Chair closed public comment.

2007/05-14 Motion by Adee, seconded by Hanson to adjourn the meeting at 12:50 p.m. Voting yes: Lepper, Hanson, Adee, Briggs, Pavleck. Motion carried.