Board Minutes

for

REGULAR MEETING OF THE KOOCHICHING COUNTY BOARD OF COMMISSIONERS
Held on Tuesday, June 15, 2010; 10:00 a.m.

MEMBERS PRESENT: Commissioners Lepper, McBride, Hanson, Pavleck
MEMBERS ABSENT: Commissioner Adee (Medical Reason)
OTHERS IN ATTENDANCE: Dennis Hummitzsch, Terry Murray, Doug Grindall, Terry Glowack, Paul Nevanen, Tim (Chopper) McBride, Steve Shermoen, Gary Johnson, Steve Howard, Lee Hervey, Dan McCarthy, Arden Barnes; Reporter Laurel Beager

2010/06-17 Motion by McBride, seconded by Hanson to approve the agenda with additions and deletions. Voting yes: Lepper, McBride, Hanson, Pavleck. Motion carried.

2010/06-18 Motion by Hanson, seconded by McBride to approve the minutes from the June 8, 2010 regular meeting. Voting yes: Lepper, McBride, Hanson, Pavleck. Motion carried.

2010/06-19 Motion by Pavleck, seconded by McBride to approve payment of the Highway claims in the amount of $73,037.56. Voting yes: Lepper, McBride, Hanson, Pavleck. Motion carried.

2010/06-20 Motion by Hanson, seconded by Pavleck to approve a Minnesota Snowmobile Trail Assistance Program FY 2010 Capital Improvement Grant Agreement in the amount of $19,950.00 for the Ridge Runner’s Snowmobile Club for the Dinner Creek Bridge Replacement Project and authorizing the Board Chair and Auditor’s signatures to said Agreement. Sponsorship by the County requires that a Club/Trail Agreement be in effect (on file in the Auditor-Treasurer’s Office) and that the County is accountable to the State for expenditures charged to the State Grant-In-Aid Program but sponsorship does not require financial support or liability for cost from the County. Voting yes: Lepper, McBride, Hanson, Pavleck. Motion carried.

000 Commissioner Hanson stated there was nothing new on the County Census Project from the last report.

000 The Land Commissioner updated the Board on the Loman County Park Ramp and Erosion Repair Project. The project has been in planning for close to two years but has resulted in a 75% cost share for the shoreline rip rap and repair of the public access boat ramp.
The Land Commissioner also informed the Board that the Department received a $2,000 donation from the local and State Deer Hunter’s Association for clover planting.

2010/06-21 Motion by Pavleck, seconded by Hanson to renew the following service contracts as recommended by the Community Service Director and upon approval of the County Attorney with no changes except for the required state rate reduction where applicable: Crabtree Senior Home Contract; Decker’s Family Care Contract; Littlefork Jackpine Chateau Contract, Mattison’s Foster Care Contract; REM SLS Contract; REM SILS Contract. Voting yes: Lepper, McBride, Hanson, Pavleck. Motion carried.

000 The Highway Engineer discussed the bituminous bid results for overlay of the expanded Courthouse parking lot and recommended not accepting the bids as the price is too high. Instead he recommended bidding at some later time when other projects are in the area to see if bid prices come in lower. The Highway Engineer stated that the gravel surface is very high quality and will hold up for parking lot purposes and that calcium chloride has been applied and will continue to be applied until such time as it is overlaid. To seek lower bid prices may allow consideration of overlaying the entire Courthouse parking lot which the Complex Superintendent feels is needed if funding is available. The Complex Superintendent and Board members expressed concern about winter snowplowing ruining the gravel surface and the Complex Superintendent in response to the Board wanting a border on the parking lot, stated that room has to be provided to plow and pile snow.

2010/06-22 Motion by Pavleck, seconded by McBride accepting the Highway Engineer’s recommendation to not overlay the Courthouse Parking Lot at this time due to the high cost and maintain the gravel parking lot with calcium chloride as needed until acceptable bid prices are received. Voting yes: McBride, Hanson, Pavleck; voting no: Lepper. Motion carried.

000 The KEDA Director provided background on the City-County owned Foreign Trade Zone (FTZ) and stated that due to a proposal submitted to KEDA to prepare the site for development, KEDA created a subcommittee to look at the best option to prepare the FTZ site for a tenant. The bottom line as determined by the subcommittee is how to remove the rock from the site and what is the value of the rock. The proposal received from a private company offered to pay for the site development with the company retaining the rock removed from the site. However, some on the subcommittee felt the rock has value as a limited and depleting resource in the County and therefore the County and City should retain the rock. The Highway Engineer provided information on the removal cost and rock value which came as a request from the KEDA subcommittee in looking at options to clear the FTZ. A representative for the private company stated that the proposal provides the County and City a means to prepare the FTZ site for a tenant at no cost to them and with a lease/royalty coming back to KEDA. In discussion on clearing and grubbing the site, the Highway Engineer’s cost estimate would have the cost of clearing and grubbing equal to the value of the timber taken from the site. With regards to the value of the rock, the company representative stated the rock only has a value if there is a buyer. In addition, the proposal would employ local workers for one full year and includes an incentive in which the company would act as a buffer to seek private development at the FTZ. In response to the question, the company representative stated that the proposal provides a profit to the company but in exchange, provides the City and County a developed site and support in seeking a developer. Though details still need to be worked out, the company representative stated the proposal would not interfere with KEDA’s own efforts to find a developer for the site. County Board members serving on the KEDA Board stated that the options, in addition to considering the proposal, come down to seeking bids for the site development or having the City/County do the site development themselves with all options considering who retains the rock. KEDA agreed that the issue needed to go back to the City and County as properties owners to decide the direction. A representative from the City stated that the City wants to move as fast as possible to develop the FTZ and would look at the best but fastest option to get there. In addition, they are researching to find out if the City can expend their EDA funds outside their City limits to consider the options of the County and City doing the work or bidding for the site development. The Board Chair stated that the County Board is supportive of developing the site but how it is done must be carefully considered and done within the public’s best interest. The Board Chair requested a site map and a lay out of options and costs for further review of the matter by the County Board.

000 Representatives from Paul Bunyan Telephone met with the Board at their request, to provide information as to the Company’s services to Koochiching County as a result of public inquires made as to their recent activities in the area. The company began as a typical telephone service but over the years branched out as technology became available. In the beginning, they were only the incumbent local exchange for the Northome area but today, are also a competitive telephone company offering telephone, data and television services. The Company picked up the Blackduck Telephone Company which serviced the Kabetogama area. In 2009, the Company installed broadband cable into Big Falls, Littlefork and the International Falls area and recently ran cable into the Ash River area. This year they are running cable to the Indus School and from Cousin to Cook to tie their network in Colleraine. With this tie, the Company will have a circular network so if there is ever a cut in a line, the system can be rerouted so there is no disruption of service. They also plan to connect to Duluth where they will lease services and reduce cost. Board members welcomed the broadband enhancement for the County but would like the Company to consider the rural areas that are not or will not be connected because they are not part of a bigger plan and questioned whether federal stimulus dollars could be utilized to get broadband to these areas. Company representatives understand the need to bring technology into the rural areas and work towards this goal. In the end, however, the Company determines where services go based on cost and revenues. Single dwellings can be serviced if there are other customers in the area to help reduce the cost. They are a cooperative so have flexibility in their decision making but have to make decisions based on the overall impact to the customers they serve. With regards to the federal stimulus dollars, the funding is limited to isolated areas but if there is already broadband in the area, the federal stimulus dollars do not apply. With regards to the inquiry made on servicing the area from Junction 11/71to Birchdale, the Company representatives suggested a call to them with information on what is in this area so they can look at it. Generally if there is a ring of 15 to 20 people, they would look at service options. In response to the public question, the representatives stated that they are not a cell phone provider but are a vender for cell phone companies for network services.

000 The Board Chair called for public comment at 12:00 p.m. Dan McCarthy stated that bids should be sought for the FTZ site preparation and informed the Board of his application to the At- Large position on the KEDA Board. Arden Barnes stated that the County needs to be in control of the rock at the FTZ, questioning if the private developer will use the rock for the City’s Riverfront Project as she is aware of the amount of rock Fort Frances used for their riverfront development.

000 The Board Chair adjourned the meeting at 12:10 p.m.