Littlefork City Council will meet in special session this week to discuss financing for the rest of the city’s $4.4 million water and sewer main repair project, scheduled for the summer of 2017.
Councilors have authorized and provided for the issuance of a $4.4 million bond and to accept $979,000 in grant money from the U.S. Department of Agriculture.
City Administrator Sonja Pelland said the first phase of the project is being temporarily financed with a loan from the Minnesota Public Facilities Authority, and further temporary financing is needed to complete the construction phase.
Temporary financing will roll into the USDA bond when the entire project is complete. It will be paid back over 40 years.
Project engineer John Mattonen of JPJ Engineering in Hibbing met with the council Thursday to discuss the next steps in the project and determine whether costs would be assessed to property owners or the entire project would be paid with increased water and sewer rates.
Pelland said the rates will increase, but councilors are considering whether to assess part of the paving cost to residents living on the affected streets.
“I think they they just would like a little expert advice from Minnesota Rural Water to reaffirm that they’re doing things in a fair way,” she said. “We want to do the water and sewer portion with rate increases, so anyone who’s got water and sewer is sharing that cost. It’s going to everybody, and the lines all connect. It’s spread among more people, because it’s a huge undertaking.”
She said video taken in 2015 to check on the condition of the pipes, installed from the 1930s through the ‘60s, showed many areas need attention.
“It verified the need for the project,” Pelland said. “The system has lived its life and it’s time to get ready for the next 50 years. The water breaks we’ve been having around town are enough to tell you that we’ve been having problems.”
She said the project bid will be awarded in April or May.
The Sixth Avenue and Minnesota Highway 217 portion of the project was completed this summer in coordination with the Minnesota Department of Transportation’s resurfacing of Highway 217.
Liquor Store issue
Also last week, Municipal Liquor Store Manager Lorina Hauner said sales were just more than $34,400 for September. The store showed a profit for the month of just more than $3,000, and a year-to-date profit of just more than $9,770.
Voters will decide Nov. 8 whether to maintain the store. Councilors have said a vote to discontinue operations would lead to its closure on May 31, 2017.
Twenty registered voters signed a petition to put the store’s fate to a vote. Seventeen were needed to bring the issue to the council.
The store will stay open if a majority of residents vote no to closure.
“The liquor store is doing well, and I’m hoping that the vote reflects that and people can see that it does make money and those jobs are important, and the business is important for the city,” Pelland said.
Upcoming events at the liquor store include a Halloween party on Oct. 28 and a deer hunter’s dance on Nov. 5.
Other business
Pelland said most bills have been paid regarding the closure of the Littlefork Medical Center, formerly owned by the city.
She said work is needed to complete financial reporting. Office staff is working with Northland Counseling, which operates the Pineview Recovery Center, and Koochiching Health Services, which operates the Jackpine Chateau assisted living facility, to capture revenues from final claims.
A boiler project, the last phase of city improvements on the building, is nearly complete. Work is being done by Shannon’s, Inc., of International Falls, the low bidder at just less than $440,000.
Rainy Lake Medical Center purchased the assets of the Littlefork Clinic and reopened the site as Rainy Lake Clinic – Littlefork on Feb. 1.
St. Francis Health Services, of Morris, Minn., took over management of the Littlefork Care Center and Jackpine Chateau assisted living facility, and began operations as Koochiching Health Services on April 1.
“I can’t say enough about how great Rainy Lake Medical Center has been to work with as we have been going through the transition process,” Pelland said. “We’ve gotten through each issue together and RLMC is making a huge effort to keep a clinic running successfully in Littlefork. They want to be a real part of our community and I think they’re going to make every effort to provide the services we need. The same goes for Koochiching Health Services and Northland Counseling. We are very fortunate to have had these three great businesses take over the operations of Littlefork Medical Center.”
Councilors agreed to sell a house at 1213 9th Ave. to Jeremy and Anne Faith for $115,000. The house formerly housed doctors employed at the Medical Center.
Councilors accepted a $500 donation from Trustar Federal Credit Union toward playground equipment purchased earlier this year, and a $100 donation from the family of Bruce Polkinghorne toward building a community park between the liquor store and community building. Pelland said the city is seeking donations and grant opportunities for the park project.
Kenny Ziemba demolished a former motel building on Main Street for the city, at a quoted price of $10,000. A final bill has not been received.
The building was ordered demolished when former owner Gayle Haugland failed to make repairs or remove the building — an issue the city had pursued for a couple of years.
Councilors approved a motion to adopt an ordinance changing the maximum height of fences within the city. The motion raises the maximum height to 72 inches – the standard height of a privacy fence.
Residents needed to get a variance for fences taller than 48 inches, according to the previous ordinance. A recent variance request by Brenda Stencel to place a 72-inch by 137-foot privacy fence on her lot had been tabled for review by the Planning and Zoning Commission.
“This is a better end result, to have the ordinance changed,” Pelland said. “It’ll be easier in the future for anyone else who wants to put up a fence.”
A Truth in Taxation hearing was scheduled at 6:30 p.m. Dec. 20 and the December meeting was rescheduled to 7 p.m. that day.
November’s regular council meeting was rescheduled to 7 p.m. Nov. 10.
