REGULAR MEETING OF THE KOOCHICHING COUNTY BOARD OF COMMISSIONERS Held on Tuesday, August 28, 2018; 9:45 a.m.

MEMBERS PRESENT: Commissioners Pavleck, Norby, Skoe, McBride MEMBERS ABSENT: Adee (Medical)

OTHERS IN ATTENDANCE: Ronald Calder, Jaci Nagle, Kathy LaFrance, Kathy Howdahl, Nathan Heibel, Steve Johnson, Burgress Eberhardt, Matt Gouin, Candance Ritch, Shana Guziec, Mike Wellcome, KCCTV Reporter Darcy Sullivan, B93 Radio Reporter Randy Thoms, Journal Reporter Whitney Jackson, KGHS Reporter Duane Etienne

2018/08-63 Motion by McBride, seconded by Norby to approve the agenda with additions and deletions. Voting yes: Norby, Skoe, McBride, Pavleck. Motion carried.

2018/08-64 Motion by Norby, seconded by Skoe to approve the minutes from the August 14, 2018 regular meeting. Voting yes: Norby, Skoe, McBride, Pavleck. Motion carried.

2018/08-65 Motion by McBride, seconded by Skoe to approve a new C41 Human Resource Generalist Job Description within the County’s Administration Department as recommended by the Administration Director. Voting yes: Norby, Skoe, McBride, Pavleck. Motion carried.

000 Board members discussed the challenges to add a new position to the County as the population of the County is decreasing, while recognizing the current need for a Human Resource position. Board members noted that they will carefully consider filling vacant position requests in the future as some reduction in staff could be made through attrition based on Department Director recommendations.

2018/08-66 Motion by McBride, seconded by Skoe to authorize the Administration Director to fill the new position of Human Resource Generalist as recommended by the Administration Director. Voting yes: Norby, Skoe, McBride, Pavleck. Motion carried.

2018/08-67 Motion by Norby, seconded by Skoe to approve Courthouse claims in the amount of $69,450.32; to approve Highway claims in the amount of $2,527.42; Public Health and Human Services claims as presented and to approve the void of warrant #20615 in the amount of $28.50 and warrant #20448 in the amount of $13,416.19. Voting yes: Norby, Skoe, McBride, Pavleck. Motion carried.

000 Ronald Calder commented to the Board that he has safety concerns regarding Cantilever Bridge Distillery having a distillery production facility in the same building as lodging facilities as it could present a fire hazard. Board members commented they will consider including language in the proposed resolution adopting the abatement stating the Developers will follow all state and local building codes.

2018/08-68 Motion by McBride, seconded by Norby to adopt the following resolution authorizing a property tax abatement for certain property located in the city of Ranier: WHEREAS, Ranier Development Company, LLC and Cantilever Bridge Distillery, LLC (Herein after “Developer”) owns real property located in the city of Ranier, County of Koochiching, particularly described, as follows (the real property and improvements hereafter collectively referred to as the “Property”):

2078 Spruce Street, Ranier, MN (Parcel ID#98-001-03090) and 2069 Spruce Street, Ranier, MN (Parcel ID#98-001-02010)

WHEREAS, the Developer endeavors to spur economic growth in the County by redeveloping the Property into distillery and boutique hotel bring jobs and tourism revenue into the area; and

WHEREAS, the Developer has filed a Business Subsidy Application and Tax Abatement Agreement (both incorporated by reference) requesting the abatement of the County’s share of ad valorem property taxes on the Property for a period not to exceed 15 years with respect to the taxes payable 2020 through 2034 in a amount not to exceed $500,000; and

WHEREAS, Statutes Section 469.1813 grants the authority to the County to grant a current or prospective abatement of property taxes; and

WHEREAS, the County held a public hearing on August 21, 2018 which was noticed by publication on August 11, 2018, August 14, 2018 and August 18, 2019 in the International Falls Journal more than ten days but less than 30 days before the hearing; and

WHEREAS, the County, finds that granting the abatement is in the public interest because it will increase or preserve the tax base as well as provide employment opportunities in Koochiching County.

WHEREAS, the Developer will adhere to all State and Local Building Codes in the construction of the facility.

NOW, THEREFORE, BE IT RESOLVED that the Koochiching County Board of Commissioners hereby authorizes the County Auditor to abate 100% of the increased portion of the County’s share of ad valorem property taxes on the Property, for the taxes payable for the years 2020 and continuing through 2034, resulting from the project in an amount not to exceed $500,000 and subject to the limitations, representations and warranties of the executed Tax Abatement Agreement. Voting yes: Norby, Skoe, McBride, Pavleck. Motion carried.

2018/08-69 Motion by Norby, seconded by McBride that as Fiscal Agent and member of the Highway 53 Task Force, to approve a contract with KeyAdvocates, Inc. on behalf of the Task Force for lobbyist services on the Highway 53 Four Lane Project for 2019 at a rate of $1,000 per month (no change in rate) to support the need for added passing lanes between Orr and International Falls; and further, approval of the agreement is contingent on the continuing cost- share agreement with the participating members of the Task Force (City of International Falls, Koochiching County and St. Louis County). Voting yes: Norby, Skoe, McBride, Pavleck. Motion carried. 2018/08-70 Motion by Norby, seconded by McBride to pre-authorize board signatures and County Attorney signature to Federal Airport Grant AIP 3-27-0043-31-2018 in the approximate amount of $6.3 million and further to require the Airport Commission to ratify the signatures when the grant is available. Voting yes: Norby, Skoe, McBride, Pavleck. Motion carried.

000 The County received a letter form the Minnesota Historical Society (MHS) inviting the International Falls and Koochiching community representatives to come together with Native representatives for an open discussion to share perspectives with each other and help the MHS make a decision for based on this meetings conversation. This meeting will not be open to the media and will be held at the Mill City Museum located in on Friday, September 21, 2018 from 10:00 a.m. to 2:00 p.m. The Board commented they are disappointed in the location selection of the meeting and feel the meeting should be held in Koochiching County.

2018/08-71 Motion by McBride, seconded by Skoe to send a letter to the Minnesota Historical Society stating the County Board’s disappointment in the location selection of a Grand Mound meeting to be held in September 21, 2018 at the Mill City Museum in Minneapolis. Voting yes: Norby, Skoe, McBride, Pavleck. Motion carried.

2018/08-72 Motion by Norby, seconded by Skoe to ratify the Professional Services Contract between Minnesota Counties Computer Cooperative and TriMin Systems, Inc. as recommended by the Information Systems Manager. Voting yes: Norby, Skoe, McBride, Pavleck. Motion carried.

2018/08-73 Motion by McBride, seconded by Skoe to authorize the capital outlay in the amount of $15,176 for server operating system and MS SQL Server upgrades as recommended by Information Systems Manager. Voting yes: Norby, Skoe, McBride, Pavleck. Motion carried.

2018/08-74 Motion by Norby, seconded by Skoe to authorize the purchase of Surveying Software in the amount of $4,890 as recommend by the Information Systems Manager, Land Commissioner and the Environmental Services Director. Voting yes: Norby, Skoe, McBride, Pavleck. Motion carried.

000 Notice of Hire of Heidi Wegner for the position of part time Office Support Specialist in the Public Health and Human Resources Department effective September 4, 2018.

2018/08-75 Motion by McBride, seconded by Norby to accept the recommendation from the Public Health and Human Services Director to renew the Northland Counseling/Koochiching Family Collaborative Purchase of Service Agreement. Voting yes: Norby, Skoe, McBride, Pavleck. Motion carried.

2018/08-76 Motion by Norby, seconded by Skoe to authorize out of state travel for Tara Besch for Emergency Management training in Anniston Alabama with all associated costs paid through the entity of Emergency Preparedness as recommended by the Director of Public Health and Human Services. Voting yes: Norby, Skoe, McBride, Pavleck. Motion carried. 2018/08-77 Motion by Norby, seconded by Skoe to approve payment for Burial Case #1063145 in the amount of $1,545 as recommended by the Public Health and Human Services Director. Voting yes: Norby, Skoe, McBride, Pavleck. Motion carried.

2018/08-78 Motion by McBride, seconded by Norby to accept the recommendation from the Public Health and Human Services Director to close the group family day care of Lacy Palmer per provider’s request and to relicense Courtney Knutson for group family day care for fourteen children. Voting yes: Norby, Skoe, McBride, Pavleck. Motion carried.

000 In recognition of Minnesota August is Child Support Awareness, Child Support Supervisor provided an update to the Board. The County employs four child support staff and together they collected $2,041,050 in 2017 which was a 4% increase over the previous year. Child support payments are especially beneficial to low income custodial families because it represents 40% of their income. Ms. Howdahl informed the Board the department has started a new initiative, working with the Rainy Lake Medical Center to refer new parents to the County to help parents understand their rights. This engages both parents and starts them on the right track to continued participation. Koochiching County ranked #1 in the State of Minnesota in arrears collections, tied for #1 in Paternity establishment, ranked #3 for current support collections and has a cost effectiveness ratio of $4.58, meaning that every dollar that is spent, $4.58 is collected. Ms. Howdahl informed the Board the County received 100% of eligible Federal funds for meeting all criteria. The Board was informed the County Attorney’s Office and the Judge have been extremely cooperative in getting people into court and making modifications in a timely manner, so clients can reasonably meet their obligations. Board members thanked Ms. Howdahl on behalf of the taxpayers and the children in Koochiching County for the good work they are doing.

000 the Land Commissioner reported on the August 1, 2018 timber auction in which 18,911 cords were sold for an auction sale value of $520,098.35.

2018/08-79 Motion by Norby, seconded by Skoe to approve the purchase of two 2019 Yamaha Kodiak 450 ATV’s to replace Land and Forestry Unit 67 (2002 Honda) and Unit 68 (2002 Honda) and further to transfer Unit 67 to the Highway Department for $500 and transfer Unit 68 to the Assessor’s Office for $500 as recommended by the Land Commissioner, County Engineer and County Assessor. Voting yes: Norby, Skoe, McBride, Pavleck. Motion carried.

2018/08-80 Motion by Norby, seconded by McBride to renew and authorize signatures to a revised Club Trail Agreement between Koochiching County and the Polar Polers Ski Club to reflect the new lease requirements of Lease #MNIS010340 with the State of Minnesota as recommended by the Land Commissioner. Voting yes: Norby, Skoe, McBride, Pavleck. Motion carried.

2018/08-81 Motion by McBride, seconded by Skoe to authorize the execution of Lease #MNIS010340 between the MN Department of Natural Resources and Koochiching County to facilitate the Polar Polers Board Walk project for the Tilson Creek Area Grant-in Aid Cross Country Ski Trail with the lease fee to be paid by the Polar Polers Ski Club as recommended by the Land Commissioner. Voting yes: Norby, Skoe, McBride, Pavleck. Motion carried. 2018/08-82 Motion by Norby, seconded by Skoe to approve the transfer of a 1995 International Dump Truck from the Highway Department to the Environmental Services Department in the amount of $7,500 as recommended by the Environmental Services Director. Voting yes: Norby, Skoe, McBride, Pavleck. Motion carried.

000 Veterans Service Officer (VSO) presented an annual report to the Board. In fiscal year 2017 $9.35 million of veterans benefits and compensation were received in Koochiching County with the majority being Compensation, Pension and Medical Care. The County’s veteran population per the report is 1,142, however the VSO believes this number is understated and estimates the actual population closer to 1,500.

2018/08-83 Motion by Norby, seconded by Skoe to adopt the following resolution for approval of the County Veterans Service Office Enhancement Grant: Be it resolved by the Koochiching County Board of Commissioners that the County enter into a Grant Contract with the Minnesota Department of Veterans Affairs (MDVA) to conduct the County Veterans Service Office Enhancement Grant Program in which the grant must be used to provide outreach to the County’s Veterans, to assist in the reintegration of combat veterans into society; to collaborate with other social service agencies, educational institutions, and other community organizations for the purposes of enhancing services offered to veterans; to reduce homelessness among veterans; and to enhance the operations of the County Veterans Service Office, as specified in Minnesota Laws 2013 Chapter 142, Article 4. Further, that this Grant should not be used to supplant or replace other funding. Be it further resolved by the Koochiching County Board that Wade Pavleck, the County Board Chair, be authorized to execute the Grant Contract for the above-mentioned program on behalf of the County. Voting yes: Norby, Skoe, McBride, Pavleck. Motion carried.

000 Board members discussed the need for the VSO to relocate their office due to the addition of a third staff person and the promotion of staff to an Assistant VSO. With these changes, they need additional private office space for Veteran interviews. Board member commented the Board has supported the search for new space, but it has been difficult and took a while to find something that meets the VSO criteria. Vacant space at the Koochiching Economic Development Authority was determined to fit their needs as it has a separate entrance and three private offices. Discussion continued regarding improvements that will be needed the space, including new flooring and a request from the VSO to install additional doors between the offices for safety reasons. VSO indicated she will be requesting the City to create a handicap parking spot on Third Street to accommodate Veterans. VSO has indicated this space will only be needed for a couple of years until she gets caught up. Ronald Calder commented on the exceptional service he was provided by the VSO and thanked her office for their efforts in helping him obtain benefits.

2018/08-84 Motion by Skoe, seconded by Norby to authorize the VSO to temporarily relocate to 407 3rd Street, International Falls which will provide three private office spaces for Veteran interviews as recommended by the VSO. Voting yes: Norby, Skoe, McBride, Pavleck. Motion carried.

000 Board members discussed the request from Beltrami County to contribute funds for enhancements to the new 72 bed Bemidji Veterans Home. Beltrami County is requesting funding from nearby counties and the funds will be matched two to one with Federal Grant. Beltrami County Commissioner provided a presentation to the board on August 14, indicated they would like to have a pledge by the end of August. Board members felt they needed more information before making a pledge and will consider this request during the budget process. Mike Wellcome commented he encourages the board to fund the enhancements.

000 Board Chair called for any additional public comment and there was none.

2018/08-85 Motion by McBride, seconded by Norby to adjourn the meeting at 12:05 p.m. Voting yes: Norby, Skoe, McBride, Pavleck. Motion carried.