REGULAR MEETING OF THE KOOCHICHING COUNTY BOARD OF COMMISSIONERS
Held on Tuesday, August 11, 2009; 9:50 a.m.

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

MEMBERS ABSENT: None

OTHERS IN ATTENDANCE: LeeAnn Meer, Brian Youso, Dennis Hummitzsch, Ken Ziemba, Terry Murray, Doug Grindall, Rod Otterness, Bob Anderson, Steve Nelson, David Salene, Ward Merrill, Phil Miller, Scott Anderson via telephone, Dale Olson, Bill Best, Justin Berg, Pam Tomevi, Bruce Hasbargen

2009/08-01 Motion by Adee, seconded by Pavleck to approve the agenda with additions and deletions. Voting yes: Hanson, McBride, Adee, Lepper, Pavleck. Motion carried.

2009/08-02 Motion by McBride, seconded by Pavleck to approve the minutes from the July 28 2009 Regular County Board meeting. Voting yes: Hanson, McBride, Adee, Lepper, Pavleck. Motion carried.

000 The Board received notice of the hire of Natalie Stone as a Public Health Educator effective August 10, 2009 and Staci Bannert as a Public Health Nurse effective August 14, 2009.

2009/08-03 Motion by Lepper, seconded by McBride to approve payment of the Courthouse claims in the amount of $38,788.24; to approve payment of the monthly County Board expense claims in the amount of $9,768.44; to approve the second half payment of the 2009 MRCC Dues in the amount of $1,050; to revise Board Motion 2009/03-18 authorizing the County’s contribution for the March 14, 2009 Legislative Town Hall Meeting from $100 to $210. Voting yes: Hanson, McBride, Adee, Lepper, Pavleck. Motion carried.

2009/08-04 Motion by Pavleck, seconded by Lepper authorizing a letter of support from the County for the Northome Library Project for the Project Grant Application. Voting yes: Hanson, McBride, Adee, Lepper, Pavleck. Motion carried.

2009/08-05 Motion by Pavleck, seconded by Adee to approve a three-year contract with Maximus for the annual County cost allocation plan for 2009, 2010 and 2011 for indirect cost reimbursement to the County for administration of federal programs at an annual contract cost of $2,950 as recommended by Administration. Voting yes: Hanson, McBride, Adee, Lepper, Pavleck. Motion carried.

2009/08-06 Motion by Lepper, seconded by Adee authorizing the Board Chair to send a thank you letter to TruStar Federal Credit Union for their contributions to the County Veterans Memorial. Voting yes: Hanson, McBride, Adee, Lepper, Pavleck. Motion carried.

000 Friends Against Abuse Executive Director requested the County Board’s participation in their October 6th “Walk a Mile in Her Shoes” Event to bring awareness to Domestic Violence and as a fundraiser for victim advocacy services and work in domestic violence prevention. Ninety-five percent of domestic violence perpetrators are men and this event will have men walking in women’s shoes for one mile to highlight that domestic violence and sexual assault are more than just a woman’s issue. The event will start at 11:00 a.m. with a presentation, followed by the 1 mile walk and lunch. The Board Chair stated that the October 6 County Board meeting will break from 11:00 a.m. to 2:00 p.m. to allow Board members to participate in the event.

2009/08-07 Motion by Lepper, seconded by Pavleck authorizing Marilee Simon to move from a temporary jail cook status to a A11 part time jail cook status to allow alternative scheduling of the part time cooks with no additional cost to the Sheriff’s Budget as recommended by the Sheriff. Voting yes: Hanson, McBride, Adee, Lepper, Pavleck. Motion carried.

2009/08-08 Motion by Adee, seconded by Pavleck authorizing expenditure up to $1,775 plus tax for a commercial grade mixer, griddle and coffee pot for the County Jail with expenditure from the 2009 Jail Equipment Budget as recommended by the Sheriff. Voting yes: Hanson, McBride, Adee, Lepper, Pavleck. Motion carried.

000 The Sheriff was informed of a complaint received from a member of the public regarding vehicle and boat trailer parking on the Highway at the Tilson’s Boat Landing on Highway 11 and the Sheriff was asked to look into the situation for public safety reasons.

2009/08-09 Motion by Lepper, seconded by Adee that in acknowledging the auctioneer’s error in bidding Tract 10 at the August 5th Timber Auction, to approve Tract 10 to be sold at 25% to Ken Ziemba as highest bidder. Voting yes: Hanson, McBride, Adee, Lepper, Pavleck. Motion carried.

2009/08-10 Motion by Lepper, seconded by McBride to renew the following service contracts as recommended by the Community Service Director and upon approval of the County Attorney: Decker’s Family Care; AEOA Supported Work Services; Ridgeview LLC. Voting yes: Hanson, McBride, Adee, Lepper, Pavleck. Motion carried.

2009/08-11 Motion by Lepper, seconded by McBride to approve addendums to the following service contracts reflecting the required state rate reduction as recommended by the Community Service Director and upon approval of the County Attorney: ODC DT & H services; Raynita Houglum SILS Services; Northome SLS Services. Voting yes: Hanson, McBride, Adee, Lepper, Pavleck. Motion carried.

2009/08-12 Motion by Lepper, seconded by McBride to approve amendments to the following service contracts reflecting the required state rate reduction as recommended by the Community Service Director and upon approval of the County Attorney: Northome SLS services, Rainy River Waivered Services, Rainy River Waivered MR/RC Services. Voting yes: Hanson, McBride, Adee, Lepper, Pavleck. Motion carried.

2009/08-13 Motion by Adee, seconded by McBride to set the pay step for the new Senior Engineering Technician hire at 100% as recommended by the Highway Engineer in his determination that a higher pay rate than the starting pay step was needed to recruit qualified applicants for the position and with this determination allowed under the Union Contract. Voting yes: Hanson, McBride, Adee, Lepper; voting no: Pavleck. Motion carried.

2009/08-14 Motion by Pavleck, seconded by McBride that due to the bid tabulation not being finalized to table bid award for the CSAH 77 Road Project until the August 25, 2009 Board meeting. Voting yes: Hanson, McBride, Adee, Lepper, Pavleck. Motion carried.

2009/08-15 Motion by Pavleck, seconded by Adee that due to the bid tabulation not being finalized to table bid award for CP 2009-03 Road Sign Project until the August 25, 2009 Board meeting. Voting yes: Hanson, McBride, Adee, Lepper, Pavleck. Motion carried

000 The Highway Engineer reviewed a State Highway Turn Back Proposal in which MnDot would turn back the portion of State Highway 332 from State Highway 53 to State Highway 11 to the County with payment to the County of $3 million and that this section of road would than become a CSAH road in which CSAH funds would be used for maintenance and any future reconstruction. MnDot is asking the County to consider this proposal as the State is looking to reduce its road mileage due to budget constraints and that the funding is available for this proposal now but may not be in the future as more turn back proposals are being looked at. The Highway Engineer stated that the $3 million is needed for bituminous overlay and graveling of county roads (local taxpayer cost) that have been neglected over the years due to funding shortages in the County budget. This proposal would also give Boise and the County the opportunity to look at an exchange of the Burner Road for the road further east but to start, look to establish the east road as a county road which should take some traffic off the Burner Road and also allow the County to monitor usage of the roads. The City of International Falls would need to approve the state highway turn back and a legislative change would be required which would be submitted in the 2010 legislative session should the County move forward on the proposal. In response to a question, the Highway Engineer stated that the County does not have to give up other CSAH miles in the County in a turn back situation. For the County this is a positive proposal as there is no cost in local dollars as state funds allocated to the County for CSAH roads are adequate to cover maintenance and reconstruction of this road and the County will receive $3 million to invest in county roads throughout the county and to replace the County’s Highway equipment which has also been deferred over the years due to budget constraints. It was agreed to have the Highway Engineer bring back more information and/or a recommendation by the September 1, 2009 County Board meeting.

000 Attorney Nelson requested the County Board to pay his court appointed attorney claim (county expense when the client can not afford the cost of an attorney to represent them in certain court matters) at a rate of $75 per hour for attorney services and $40 per hour for non-attorney services stating that the County’s current policy of paying $50 per hour for court appointed attorney services is not a reasonable as allowed under Minnesota Statute for payment of these services. He requested payment of his outstanding claim in the amount of $6,246.22. He stated that paying attorneys an unreasonable fee will decrease service and penalize those needing an attorney to represent them, noting that these clients are up against competent professionals such as the County Attorney, Law Enforcement and Social Services who are building the case against them. Board members stated that this is one view, but for the County appointment of attorneys or any other court expense should be borne at the State level not the local level and the cost borne by the County in mandates to pay expenses for the State Court System are escalating every year with the County having no control. To approve a rate increase as suggested will only escalate the cost faster for the local taxpayer. Attorney Nelson stated that the County does have control as how the matter is first handled by the County Attorney and/or Social Services Department will determine the needs for a court appointed attorney. He stated in Lake of the Woods County there are very few CHIPS cases in comparison to Koochiching County where there are many. In response to the question of service, Attorney Nelson stated that if the rate is not increased there will still be an attorney to represent the client but they will not be afforded the representation they need. The Board Chair stated that they would review the court appointed attorney policy as part of their 2010 County Budget process. The Board took no action on the request for payment at the increased rates.

000 The Financial Consultant and AB/Backus Director submitted their request for the County Board to schedule a public hearing for the purposes of issuing 501c3 Bonds and to establish a Recovery Zone to allow the issuance of Recovery Zone Facility Bonds to provide low interest financing for their $592,000 Backus Third Floor Renovation Project. The County’s only role in issuing the bonds is to provide tax exemption to the bonds, otherwise there is no liability or debt to the County. As the first step, the public hearing needs to be held and the Financial Consultant and the Project Bond Counsel will provide the information for the public hearing and the bond issue should the County Board authorize it following the public hearing.

2009/08-16 Motion by Pavleck, seconded by Lepper granting preliminary approval for the financing of renovations to a Community Center Facility in the City of International Falls, MN owned by Citizens for Backus/AB, Inc. and calling for publication of a Notice of Public Hearing and requesting consent from the City of International Falls for the Financing:

BE IT RESOLVED by the Board of Commissioners (the “Board”) of Koochiching County, Minnesota (the “County”), as follows:

Section 1. Recitals. 1.01. It has been proposed by Citizens for Backus/AB, Inc., a Minnesota nonprofit corporation (the “Borrower”) to the County that the County assist in the financing of the renovation of the third floor of the Borrower’s community center facility (the “Project”), located at 900 Fifth Street in the City of International Falls, Minnesota (the “City”).

1.02. Under the Borrower’s proposal, the County will issue its (i) Revenue Note (Citizens for Backus Project), Series 2009A, and (ii) Recovery Zone Facility Note (Citizens for Backus Project), Series 2009B (collectively, the “Notes”), pursuant to Minnesota Statutes, Sections 469.152 through 469.1651, as amended (the “Act”). The maximum aggregate principal amount of the proposed Notes is estimated to be $600,000. The Project will be owned and operated by the Borrower.

1.03. Under the provisions of the Act, the County is authorized to issue the Notes after (i) the Board has held a duly noticed public hearing on the Project (the “Public Hearing”), and (ii) the County has obtained consent from the City for the issuance of the Notes.

Section 2. Preliminary Approval by County; Ratification of Notice of Public Hearing.

2.01. The Board grants preliminary approval for the issuance of the Notes to be used for the financing of the Project. County staff and Kennedy & Graven, Chartered, acting as bond counsel to the County, are authorized to take such actions as are deemed necessary and appropriate for such financing. Final approval of the sale of the Notes and the financing documents therefore shall be considered by the Board subsequent to the Public Hearing, which Public Hearing is scheduled for Tuesday, September 1, 2009, at 1:30 p.m.

2.02. A notice of the Public Hearing must be published at least once, not less than 14 days or more than 30 days prior to the date fixed for the Public Hearing in the official newspaper of the County and a newspaper of general circulation in the County.

2.03. Kennedy & Graven, Chartered, as bond counsel, is authorized and directed to publish notice of the Public Hearing on behalf of the County in substantially the form hereto as EXHIBIT A, in the Daily Journal, which is the official newspaper of the County and a newspaper of general circulation in the County.

Section 3. Consent of the City. County staff and bond counsel are authorized and directed to request approval by the City Council of the City for the issuance of the Notes at the regular meeting of the City Council on August 17, 2009. Voting yes: Hanson, McBride, Adee, Lepper, Pavleck. Motion carried.

000 The Board Chair called for public comment: A member of the public inquired on landscaping repairs on their property due to the Jackfish Sewer installation and they were deferred to the Environmental Service Director. Board recessed for lunch at 11:50 a.m.

2009/08-17 Motion by Lepper, seconded by Adee to close session at 1:40 p.m. to review Jacobson versus Koochiching County regarding a Cartway with the County’s legal counsel. Voting yes: Hanson, McBride, Adee, Lepper, Pavleck. Motion carried. (Attending was the full County Board, County Attorney, MCIT Legal Counsel via telephone and Highway Engineer).

2009/08-18 Motion by Adee, seconded by McBride to open session at 2:15 p.m. Voting yes: Hanson, McBride, Adee, Lepper, Pavleck. Motion carried.

2009/08-19 Motion by Lepper, seconded by Adee that on the advice of MCIT Legal Counsel to not appeal the Court Order mandating the County to establish a Cartway for the Jacobson Property and to set a Cartway Hearing for September 8, 2009 under required notice to move forward on establishing the Cartway under Minnesota Statute and further, to schedule time at the August 25, 2009 County Board meeting to review the proposed cartway route and procedures in preparation for the September 8, 2009 Cartway Hearing. Voting yes: Hanson, McBride, Adee, Lepper, Pavleck. Motion carried.

2009/08-20 Motion by Pavleck, seconded by McBride to table action on the Joint Powers Agreement between Koochiching and St. Louis Counties for the Shared Water Basin Sewer Project until all parties have agreed to the terms and recommend its approval. Voting yes: Hanson, McBride, Adee, Lepper, Pavleck. Motion carried.

000 The Environmental Service Director provided information to the Board that the property proposed for the rock quarry site in the Clementsen area by Bowman Construction is in the Sustainable Forest Incentive Act Program which places use restrictions on the property, bringing into question whether a rock quarry will be an allowed use on this property. The Applicant is looking into this matter but the Director inquired as to whether the Board would still want to conduct the site visit on August 18th. Bowman Construction did sign and agree to a time extension on his application decision which goes into October so there is time on this issue. The Board Chair with the Board’s consent cancelled the August 18th site visit and will notify the area residents of the cancellation with the Director to inform Bowman Construction and to bring the issue back to the September 1 County Board meeting for an update.

The Board was presented with a recommendation from the WCA Technical Evaluation Panel and Environmental Service staff to approve eligibility of 65% of field and 3 acres of buffer for the 71 acre Hasbargen Haven Site for credits in the Wetland Banking Program. In reviewing the eligibility of this site for the wetland banking program it was determined that the site was once a wetland and through its history was improved for farming purposes. In order to determine the number of acres eligible for wetland credits, the applicant needs to provide data to support crop rotation to show that the land was farmed and not just left alone or used for hay. The Applicant recently purchased the property and did not have the records to support 100% of the acreage to the wetland bank. The Environmental Director stated that review of the application and data is supported by the Panel and Staff at 65% of the acreage for enrollment into the Wetland Banking Program. Mr. Hasbargen stated opposition to the recommendation as he feels 100% of the acreage is eligible and disagrees with the guides established by the Panel in determining the 65% enrollment. In addition, he invested in this property and the site preparation work for enrollment in the wetland bank based on the language in the WCA rules. The guides used by the Panel in determining acreage eligibility should have been provided him before he made application and investment in the property. As explained by the Environmental Service Director, if the County Board accepts the recommendation, Mr. Hasbargen can appeal to the BWSR Board with a $500 appeal fee. If the County denies the recommendation, BWSR would have 30 days to initiate an appeal of the County Board’s decision or the application is approved as submitted by the applicant. The County Board could also choose to extend the timeline for further review if the applicant agrees. The Applicant is requesting a decision today. First, Board members questioned charging a private land owner a $500 fee to appeal but if the appeal is done by a government agency there is no fee, stating it stacks the deck against the property owner. Secondly, after acknowledging the Panel and staff for doing their best to work with the property owner in this matter, the Board members stated that at the end of the day they will side with the property owner as wetland management with all its rules and regulations is so complicated and complex that a property owner doesn’t have a chance in presenting their case in any situation. The Board Chair summarized in saying that wetlands impede property owners in every way and the Board wants to provide the applicant another opportunity to present his case for enrollment of 100% of the acreage.

2009/08-21 Motion by Pavleck, seconded by Lepper to deny the recommendation of the WCA Technical Evaluation Panel and Environmental Service staff to approve eligibility of 65% of field and 3 acres of buffer for the 71 acre Hasbargen Haven Site for credits in the Wetland Banking Program with the intent of giving Mr. Hasbargen 100% credit for his project unless this decision is appealed and overruled by BWSR as provided in the WCA rules. Voting yes: Hanson, McBride, Adee, Lepper, Pavleck. Motion carried.

2009/08-22 Motion by McBride, seconded by Adee to adjourn the meeting at 3:40 p.m. Voting yes: Hanson, McBride, Adee, Lepper, Pavleck. Motion carried.