City of Ely Minutes of May 20, 2008

DRAFT<BR><BR>Council Chambers<BR><BR>Ely, Minnesota<BR><BR>Tuesday, May 20, 2008<BR><BR>6:30 P.M. Regular Meeting<BR><BR>Regular meeting of the Ely City Council was called to order at 6:30 P.M. by Mayor Charles J. Novak.<BR><BR>PRESENT: Council members Debeltz, Lindroos, Nikkola, Omerza, Sheddy, Zupec, Mayor Novak (7)<BR><BR>ABSENT: None (0)<BR><BR>A quorum was determined.<BR><BR>Mayor Novak welcomed members of tonight's audience present and those viewing on ELY TV Channel 11.<BR><BR>Moved by Debeltz supported by Zupec, that the minutes of the regular meeting of May 6, 2008 be approved without reading. Carried unanimously. Minutes to stand as recorded.<BR><BR>The following additions were added to tonight's agenda: <BR><BR>Council member Omerza - addition - May 20, 2008 Memorandum distributed to Council members prior to tonight's meeting, to be taken up under New Business, I; omission of Larry Lionberger on tonight's agenda, under Requests To Appear. Council members approved of above addition and omission, without objection.<BR><BR>Mayor Novak presented Nathan Leustek with a framed letter of commendation from the City of Ely, as to attaining his Eagle Scout Ranking, which is the highest honor in Boy Scouting. He cited Nathan's participation in a variety of High School Activities, along with congratulating him for being nominated and accepted into the Merchants Marine Academy in Kings Point, New York. Council members and those in the audience applauded Nathan for his accomplishments. <BR><BR>Mayor Novak noted for the record that there will be a Special Meeting of the Ely City Council and Ely School Board, scheduled for Wednesday, May 21st, 6:30 P.M. City Hall Board Room, to discuss the JFK Building, which has been posted prior. Matter of information.<BR><BR>Mayor Novak noted for the record that the Ely City Council will be holding a public hearing on Tuesday, June 3, 2008, 6:15 P.M. Council Chambers of the Ely City Hall regarding amending Section 6.05 of the Ely City Charter pertaining to Purchases and Contracts, which has been posted prior. Matter of information.<BR><BR>The following consent agenda items were brought before the Council for approval:<BR><BR>VCC, Paul McDonald, Athletic Director - request for contributions for athletic poster and program ( Council members to donate on their own if so choosing);<BR><BR>Ely Public Library Board - recommend that City advertise for vacancy on board with term running through January 31, 2009;<BR><BR>Grace Lutheran Church, Ray Doran, President, Men's Club - letter of thanks to Mayor Novak for attendance at meeting - INFORMATION;<BR><BR>12th Annual United Way Motorcycle Ride The Range, Saturday, June 14th - request for traffic control ( approve and refer to Police Chief for coordination);<BR><BR>Gary P. Stromback, Committee Member, Vietnam Traveling Wall - July 17th - 21st - Vietnam Veterans Motorcycle Procession ( approve and refer to Police Chief for coordination);<BR><BR>Memorandum of Understanding - City of Ely / Voltz Technologies ( approve with Mayor and Deputy Clerk authorized to execute)<BR><BR>Moved by Zupec supported by Nikkola, that above items be approved and ordered filed. Carried unanimously.<BR><BR>Roger Skraba ( City of Ely representative to the Mesabi Trails Group) requested placement on tonight's agenda regarding a Mesabi Trail Update: he noted that the new kiosk near the parking lot is a place to inform the public about the trail and anything the city would like to tell users. Doug Schmidt is the contact person from Mesabi Trail if the City needs to change any of the posted information. There was also a major cutting of trees next to the trail last fall, and now the trees need to be picked up. In speaking with Doug Schmidt, the following plan have been formulated for the public to pick the trees up:<BR><BR>If someone wants the wood they have to sign in with the Clerk's Office when they are going to be on the trail. They must use flashers at all times while on the Trail. It is a violation of County law to operate any motor vehicles on the Trail. They will be allowed to use their vehicle on the trail only to pick up the wood with permission from the City.<BR><BR>The wood is free and on a first come first served basis. There is a consideration amount and is located on the south side of Miner's Lake only. They can only take trees already felled and need to clean up the trail behind them.<BR><BR>If anyone has questions, they can contact Roger Skraba at 218-235-1609 or the Clerk's Office at 218-365-3224.<BR><BR>Moved by Zupec supported by Debeltz, that parties are authorized to use the Mesabi Trail to pick up wood only, adhering to above policy, and that the Clerk's Office coordinate and advertise this project with the public. Carried unanimously.<BR><BR>Council member Zupec expressed his hopes of a future ATV Trail to Ely, with Council member Sheddy noting that a trail improves property value in the area. Roger noted that he is also trying to push for a horse link trail between Tower and Ely; or hopefully between Tower and Embarrass. Mayor Novak also commented that the City is looking at a possible trailhead designation for our former Pioneer Mine area, requesting that Roger bring this up to the Mesabi Trails Group at a future meeting.<BR><BR>Council member Lindroos reported on behalf of the Ely Airport Commission Meeting of May 13th: Mark Pursell from TKDA was present to discuss the Ely Municipal Airport, 2008 Capital Improvement Program, Apron Expansion and Crack Repair Project, at which time the Commission recommended deferring the award of the construction contract for this project. Moved by Lindroos supported by Sheddy, that per recommendation of the Airport Commission, the City of Ely defer the award of the construction contract for this project to Louis Leustek and Sons. Moved by Lindroos supported by Sheddy, that the following amendment be added to motion: that all bids received on this project be rejected. Carried unanimously.<BR><BR>Moved by Lindroos supported by Debeltz, that per recommendation of the Airport Commission, TKDA be directed to contact the FAA regarding a development grant, to cover engineering services incurred to date on the Airport Project. Carried unanimously.<BR><BR>Moved by Lindroos supported by Debeltz, that per recommendation of the Airport Commission, the MPCA Annual Storm Water Permit in the amount of $400.00 be authorized for payment. Carried unanimously.<BR><BR>Council member Omerza reported that she has been sitting in for the Clerk-Treasurer at the Disaster Response Working Group Meetings, and was inquiring as to why the Civil Defense Director would not be sitting in on these meetings representing the City of Ely.<BR><BR>George Burger was invited to attend the May 13th meeting, as he is responsible for the City web site, with one of the group's recommendations likely will be that George obtain emergency response and emergency planning information from Civil Defense Director Louis Gerzin for posting on the City's soon to be developed web site. Moved by Omerza supported by Debeltz, that George Burger be requested to attend the Disaster Response Working Group Meetings on a monthly basis, representing the City of Ely.<BR><BR>Council member Sheddy stated that he opposed this motion, as employee's time could be better spent on current duties, and that a representative from either the Fire or Police Department should be attending these meetings. Council member Lindroos agreed that other city personnel should be considered other than George Burger.<BR><BR>YES: Council member Debeltz (1)<BR><BR>NO: Council members Lindroos, Nikkola, Omerza, Sheddy, Zupec, Mayor Novak (6)<BR><BR>ABSENT: None (0)<BR><BR>Motion lost.<BR><BR>Moved by Lindroos supported by Zupec, that once the City Web Site is completed, George Burger be requested to attend the Disaster Response Working Group Meetings.<BR><BR>Moved by Lindroos supported by Zupec, that the following amendment be added to original motion: that this matter be placed on the agenda for the Tuesday, June 24th regular monthly Ely City Council Study Session. Carried unanimously.<BR><BR>Council member Omerza reported on behalf of the City Parks and Recreation Board:<BR><BR>Jolie Ensign had requested the use of Whiteside Park for Community Ed Youth Soccer for Sunday afternoons in August and September. Moved by Omerza supported by Debeltz, that per recommendation of the City Parks and Recreation Board, approval be granted for Jolie Ensign through Ely Community Education, to use Whiteside Park on Sunday afternoons in August and September, to coordinate schedule with the Clerk's Office and providing appropriate insurance information. Carried unanimously.<BR><BR>Council member Nikkola reported that the City Budget Committee had met on May 8th and are recommending the following: that the Council approve of the resolution making a declaration of official intent to finance acquisition items of capital equipment utilizing a bond with a maximum principle amount of obligation of $250,000. Moved by Nikkola supported by Debeltz, that recommendation be approved. Carried unanimously.<BR><BR>It was noted that Wells Fargo had approached the City of Ely with a $500,000 line of credit, but that the rates would be more favorable to the City through the bond procedure. <BR><BR>Council member Sheddy reported that the Sanitation Committee will be meeting on Thursday, May 22nd, 10:00 A.M. at the Klun Law Firm to discuss sanitation contract.<BR><BR>Discussion will take place on the fluctuation of fuel prices ( high and low ). Matter of information.<BR><BR>Deputy Clerk reported that the City of Ely is calling for applicants for the position of City Clerk-Treasurer until Friday, May 23rd, 4:30 P.M. Along with traditional posting process, Personnel Consultant Paul Ness and herself have placed the job posting with state side colleges and universities for traditional and non traditional graduates in the Business and Accounting fields, along with sending posting to various organizations and groups throughout the State. Once Paul has reviewed and ranked the applications, Deputy Clerk will schedule several special council meetings in June, in order to conduct the interviews. Matter of information at this time.<BR><BR>Deputy Clerk recommended that the Council direct the City Budget Committee to incorporate proposal the City of Ely received from the American Legal Publishing Corporation who works with the League of Minnesota Cities for codifying all City Ordinances, for the base price of $12,995.00, into the City Budget for 2009. This group will review all city ordinances, and work with department heads and elected officials in removing those ordinances no longer valid or needed, and amending those which need updating. Moved by Debeltz supported by Zupec, that recommendation be approved. Carried unanimously. <BR><BR>Deputy Clerk reported that the City of Ely and Ely Housing and Redevelopment Authority, advertised for proposals for combined propane requirements for the contract period August 1, 2008 - July 31, 2009, with two proposals received: one from Ferrellgas in the amount of $1.963 per gallon; one from Como Oil in the amount of $2.179 per gallon for City and $2.079 per gallon for Housing Authority as the latter owns their own tanks and vaporizers, while the City utilizes Ferrelgas tanks and vaporizers.<BR><BR>Moved by Debeltz supported by Zupec, that the City of Ely award bid for propane requirements to the low bid of Ferrellgas for the contract period August 1, 2008 - July 31, 2009. Carried unanimously.<BR><BR>Deputy Clerk reported that the City of Ely had advertised for Administrative Hearing Judges for civil enforcement issues, and that two individuals have applied: Will Hauser, 821 East Pattison Street, Ely and Alcyd N. Soderfelt, 1320 East Camp Street, Ely.<BR><BR>Moved by Nikkola supported by Sheddy, that above individuals be appointed as Administrative Hearing Judges for civil enforcement issues.<BR><BR>YES: Council members Debeltz, Lindroos, Nikkola, Sheddy, Zupec, Mayor Novak (6)<BR><BR>NO: None (0)<BR><BR>ABSTAIN: Council member Omerza (1)<BR><BR>Above two appointees along with prior appointee Larry Reedy, will be given background checks prior to proceeding with process.<BR><BR>City of Ely Operations Director of Public Works and Utilities Harold Langowski presented the following EUC Consent Agenda Items:<BR><BR>Recommend purchase of four (4) transformers from Minnesota Power for the Burntside Pump Station for $4,860.60;<BR><BR>Recommend purchase of three (3) electric meters from Border States Electric for $1,686.16;<BR><BR>Recommend payment of MPCA Invoice #4400060495 for the WWTP Annual Permit Fee for $5,900.00;<BR><BR>Recommend payment of MPCA Invoice #4400060495 for the WTP Annual Permit Fee for $345.00;<BR><BR>Recommend payment of the Wisconsin Energy Conservation Corp. Invoice #11849 for $194.20;<BR><BR>Recommend payment of RLK, Invoice #2 for the 3rd Avenue East Sewer Improvement Project for $709.83;<BR><BR>Recommend payment of RLK, Invoice #4 for the Harvey/Conan Alley Utility Improvement Project for $3,226.85;<BR><BR>Recommend payment of RLK Inc. Invoice #4 for the Pamida Utility Extension for $90.80;<BR><BR>Recommend payment of the Minnesota Power March Bill for $161,312.85;<BR><BR>Recommend payment of St. Louis County Invoice #2156 for the Joint Public Works Facility Biannual Lease Payment for $71,884.00;<BR><BR>Recommend payment of Terry's Operational Services April Invoice for $550.00;<BR><BR>Recommend payment of KBM Inc. Invoice #040813 for Feeder 6 engineering services for $5,801.58;<BR><BR>Recommend payment of KBM, Inc. Invoice #040812 for miscellaneous electrical services for $855.03<BR><BR>INFORMATION<BR><BR>Authorize bids for two (2) utility vehicles.<BR><BR>Approve Larry Polyner as the EUC representative on the Budget Committee<BR><BR>Approve proposal to dispose of power poles from the Reconductor Project.<BR><BR>Moved by Zupec supported by Nikkola, that above consent agenda items #1 - #13 be approved and ordered filed. Carried unanimously.<BR><BR>Mayor Novak noted that the Spectrum bills will be reimbursable from the IRR; also, that the EUC had paid for the first lease payment on the Joint Public Works Maintenance Facility, in the amount of $71,884.00. The City of Ely will be paying for the second lease payment due in the fall.<BR><BR>Council member Lindroos questioned consent agenda item #1 - transformers, with City Operations Director reporting that everything is working properly, and the City is rectifying Schultz' concerns. Council member Zupec stressed that the City needs to look for another source of water. City Operations Director Langowski reported that the EUC has been looking for an alternate replacement of line, and will continue to work with contract employee Terry Jackson on this matter. He noted that Shagawa Lake was an alternate source at one time with Council member Zupec recommending that Lucky Boy be a good alternate source needed. <BR><BR>The City of Ely had forwarded the Town of Morse a proposed annexation agreement drafted up by City Attorney Rae Bentz several months ago, and received a communication from the Town of Morse affirming they had received the proposed annexation agreement from the City of Ely, has reviewed the document and would like to see the following changes made:<BR><BR>A map and land description to match the information listed on page one;<BR><BR>Language detailing the split of revenues, starting at 60-40 as agreed upon.<BR><BR>Council member Debeltz commented that the group did discuss a 60-40% split, but it was not agreed upon by all members present. Council member Nikkola commented that this matter needs further discussion, noting that if the Town of Morse is not going to help pay for infrastructure, why the 60/40 split. Mayor Novak stated that the city had sent out prior letters to Town of Morse and has received no response up until now; he is recommending that all members again sit down together at the table, as he does not want to commit the City to anything at this time. Council member Sheddy noted that he is in favor of annexation, it would be beneficial to both parties, and at this time both parties need to move forwarded. Mayor noted that the 50 some acres being discussed is property already included in the orderly annexation agreement. Deputy Clerk was directed to set up a joint meeting between the City of Ely and Town of Morse.<BR><BR>Claims for payment were received on the following: <BR><BR>Pat Conery, Building Official<BR><BR>1. March 2008 inspection fees - $8,651.70;<BR><BR> 2. April 2008 inspection fees - $2,954.54;<BR><BR> 3. Inspection fees through May 12th - $11,082.92<BR><BR>Paul Ness, Consultant<BR><BR>Professional services/meeting with ER Committee Members and Deputy Clerk to update Department Head Job Descriptions -$218.62;<BR><BR>Hiring Assistance for Clerk-Treasurer * includes correction to previous invoice - $909.23;<BR><BR>Development of job description for Office Assistant to Police and Clerk-Treasurer's Office - $230.67 ( * AFSCME has agreed to include in essential unit, also approving recommended hourly rate of pay for 32 hours per week - will be brought before the ER Committee for formal review and recommendation to Council at June 17th regular meeting);<BR><BR>*FOR ELY TV<BR><BR>Media Control Systems - ELY TV Equipment - supplies - training - $31,700.00 * originally approved by TAB;<BR><BR>Klun Law Firm - legal services rendered to ELY TV Invoice #13540 - $1,655.38<BR><BR>US Bank - GO Crossover Refunding Bonds of 2003 - $431.25 <BR><BR>* FOR PARKS AND RECREATION DEPARTMENT <BR><BR>Voyageur Lumber Inc. - Park Project - $1,445.20;<BR><BR>Cunningham Electric - Conduit/Ceilings at Skatepark - $1,430.30<BR><BR>Moved by Debeltz supported by Sheddy, that above items #B, #C, #D and #E, be approved and ordered filed. Carried unanimously.<BR><BR>Council member Debeltz questioned Claims for Payment, Item A. Pat Conery, Building Official, inquiring as to how the meeting went between the Building Official and Council members Lindroos, Sheddy, City Attorney Bentz. Council member Lindroos noted that he felt the meeting went well, and that the city group has good expectations for improvement and working through this relationship. Council member Debeltz noted that the Building Official is contracted by the City and needs to communicate with City officials when requested , as the City of Ely is paying this individual's salary. He further stated that communications is a two way street, and that when contacted by a City Official, the contractor needs to respond back in a timely manner. Council member Sheddy also stated that the inspection fees submitted by the Building Official need a checks and balances system to make sure that the numbers are correct, prior to payment.<BR><BR>Moved by Sheddy supported by Nikkola, that Claims for Payment, Item A. Pat Conery, Building Official: inspection services for March ( $8,651.70); April ( $2,954.54); and through May 12, 2008 ( $11,082.92), be approved. Moved by Sheddy supported by Nikkola that the following amendment be included in the original motion: that claims be approved contingent upon review and approval by the Zoning Administrator as to the permit billings be properly prepared. Carried unanimously.<BR><BR>Moved by Omerza supported by Nikkola, that the City of Ely dispense with the readings in their entirety, of all ordinances and resolutions on tonight's agenda. Carried unanimously.<BR><BR>Council member Debeltz offered the following ordinance: Proposed Ordinance No. #218, Second Series <BR><BR>An Ordinance Of The City of Ely, Minnesota, Adding To The Ely City Code, Chapter 20, Section 20.2.40, Authorizing The Sale of Land to Mills/Nelson<BR><BR>The Council of the City of Ely Does Hereby Ordain:<BR><BR>SECTION 1. The Council of the City of Ely, having considered the matter, has determined that the real property hereinafter described does not currently serve any public purpose, the conveyance of this real property is in compliance with the comprehensive municipal plan, the Planning Department has determined that the proposed use is consistent with the comprehensive municipal plan; and, is therefore available for disposal.<BR><BR>SECTION 2. Pursuant to Section 12.05 of the Charter of the City of Ely, Minnesota, the Council of the City of Ely is hereby authorized to transfer, contingent upon the vacation of a portion of Old Pioneer Road, and the Mayor and Clerk-Treasurer are hereby authorized to execute a quit claim deed and all other documents, and perform all acts, necessary for the transfer to Scott Mills and Wende Nelson, that certain real property legally described as follows:<BR><BR>That part of the Northeast Quarter of the Southeast Quarter of Section 28, Township 63 North, Range 12 West of the Fourth Principal Meridian, St. Louis County, Minnesota, described as follows:<BR><BR>Assuming the line common to Lots 24, 25, and Pioneer Road of the officially recorded plast of North Chandler Third Addition to bear North 28 degrees 48'00" East and from the corner common to Lot 18, North Chandler Third Addition, said Lot 25 and Pioneer Road, being the POINT OF BEGINNING, run South 60 degrees 42'27" East, a distance of 125.79 feet to a nontangential curve on the northwesterly Right-of-Way of Pioneer Road as it exists in September, 2007.<BR><BR>Thence northeasterly along said nontangential curve, concave to the Southeast, on said existing northwesterly Right-of-Way of Pioneer Road, central angle of 00 degrees 40'40", chord bearing of North 30 degrees 24'34" East, chord distance of 175.50 feet, radius of 14,834.10 feet, a distance of 175.50 feet to the west Right-of-Way of the existing Yukon Drive;<BR><BR>Thence North 59 degrees 16" 50" West, along said southwesterly Right-of-Way of Yukon Drive, a distance of 66.04 feet to a tangential curve concave to the northeast;<BR><BR>Thence northwesterly along said tangential curve on said southwesterly Right-of-Way, central angle of 20 degrees 57'05", radius of 80.00 feet, a distance of 29.25 feet to a nontangential curve concave to the northwest;<BR><BR>Thence southwesterly along said nontangential curve, central angle of 36 degrees 32'03", chord bearing of South 65 degrees 38'12" West, chord distance of 48.90 feet, radius of 78.00 feet, a distance of 49.74 feet;<BR><BR>Thence North 32 degrees 22'35" West, a distance of 7.97 feet to the line common to Lot 24 and Pioneer Road;<BR><BR>Thence South 28 degrees 48'00" West along said common line, being also common to Lot 25 and Pioneer Road, a distance of 147.52 feet to the POINT OF BEGINNING.<BR><BR>Said parcel contains 0.50 acres.<BR><BR>RESERVING unto Grantor a perpetual exclusive easement for ingress, egress and utilities, in, over, under, across and upon, said land of said Grantor for the purposes of construction, maintenance, repair, upgrade, reconstruction or replacement of underground water, electric utilities, and associated equipment and structures.<BR><BR>SUBJECT to the following RESTRICTIONS: Said real property shall forever be maintained as "green space" and no structure shall be built upon said real property.<BR><BR>SUBJECT to mineral rights, and other rights, reservations, restrictions and easements of record.<BR><BR>AND <BR><BR>That part of the Northeast Quarter of the Southeast Quarter of Section 28, Township 63 North, Range 12 West of the Fourth Principal Meridian, St. Louis County, Minnesota, described as follows:<BR><BR>Assuming the line common to Lots 24, 25 and Pioneer Road of the officially recorded plast of North Chandler Third Addition to bear North 28 degrees 48'00" East and from the corner common to Lot 18, North Chandler Third Addition, said Lot 25 and Pioneer Road, run South 60 degrees 42'27" East, a distance of 125.79 feet to a nontangential curve on the northwesterly Right-of-Way of Pioneer Road as it exists in September, 2007; thence northeasterly along said nontangential curve, concave to the Southeast, on said existing chord bearing of North 30 degrees 26'53" East, chord distance of 195.50 feet, radius of 14,834.10 feet, a distance of 195.50 feet to the northeasterly Right-of-Way of the existing Yukon Drive being the POINT OF BEGINNING, being also a point of compound curve concave to the southeast.<BR><BR>Thence northeasterly along said compound curve on said existing northwesterly Right-of-Way of Pioneer Road, central angle of 08 degrees 17"52", a radius of 1,349.90 feet, a distance of 1,348.90 feet, a distance of 195.35 feet;<BR><BR>Thence North 17 degrees 39'21" West, a distance of 39.03 feet to the line common to Lot 3, Lot 22A and Pioneer Road of North Chandler Third Addition;<BR><BR>Thence South 59 degrees 07'45" West along said common line, a distance of 153.73 feet to a tangential curve concave to the northeast;<BR><BR>Thence northwesterly and northeasterly along said tangential curve along the westerly boundary of said Lot 22A, central angle of 149 degrees 42'50", a radius of 21.24 feet, a distance of 55.50 feet to a point on the northeasterly Right-of-Way of the existing Yukon Drive;<BR><BR>Thence South 28 degre3es 50'35" West along said northeasterly Right-of-Way, a distance of 37.62 feet to a tangential curve concave to the southeast;<BR><BR>Thence southeasterly along said tangential curve on said northeasterly Right-of-Way, central angle of 88 degrees 07'25", radius of 60.00 feet, a distance of 92.28 feet;<BR><BR>Thence South 59 degrees 16'50" East along said northeasterly Right-of-Way, a distance of 66.06 feet to the POINT OF BEGINNING.<BR><BR>Said parcel contains 0.40 acres.<BR><BR>RESERVING unto Grantor a perpetual exclusive easement for ingress, egress and utilities, in, over, under, across and upon, said land of said Grantor for the purposes of construction, maintenance, repair, upgrade, reconstruction or replacement of underground water, electric utilities, and associated equipment and structures.<BR><BR>SUBJECT to the following RESTRICTIONS: Said real property shall forever be maintained as "green space" and no structure shall be built upon said real property.<BR><BR>SUBJECT to mineral rights, and other rights, reservations, restrictions and easements of record.<BR><BR>SECTION 3. Effective Date: Pursuant to Section 3.08 of the Charter of the City of Ely, Minnesota, the adoption of this Ordinance is effective immediately after final adoption and publication.<BR><BR>Motion for the adoption of the foregoing ordinance was made by Council member Debeltz, seconded by Council member Nikkola, and declared carried on the following vote:<BR><BR>YES: Council members Debeltz, Lindroos, Nikkola, Omerza, Sheddy, Zupec, Mayor Novak (7)<BR><BR>NO: None (0)<BR><BR>ABSENT: None (0)<BR><BR>Proposed Ordinance #218, Second Series, adopted and given a second and final reading and publication, this 20th day of May 2008.<BR><BR>The Ely City Council had prior approved the drafting of a resolution in support of Dr. Lynn Rogers research on black bears, and the North American Bear Center. Mayor Novak informed Council members that this resolution will be presented at the June 3, 2008 Regular Ely City Council meeting. Matter of information.<BR><BR>The EEDA had met on Tuesday, May 13th, recommending the following to the Ely City Council:<BR><BR>To sell the old county garage site to Mauro Caruso / Trails Plaza Proposal, for the price of $200,000. Moved by Debeltz supported by Sheddy, that recommendation be approved. Mayor Novak stated that there was a misunderstanding of process; the City was in receipt of another drawing today for this property that must be forwarded to the EEDA. He also stated that there must be a defined process for the City to sell property, as in what happened with the JMW ( Pamida ) land sale. All proposals must have the same rules. Council member Zupec suggested that both proposals be brought back to the EEDA table. Council member Omerza stated that this property being sold is a part of a big trade; prior Council utilized a due diligence process and the City has now incurred debt to be paid off ( Joint Maintenance Facility), with a bi-annual lease purchase of $71,000.00 owed to St. Louis County, and that if the City can make more monies in selling current city property, the Council now owes it to the tax payers to get the most dollars the Council can, in the sale of city properties. Mayor Novak stated that the current appraisal on property was done by comparables; City land value, additive - future tax revenues, fitting the comprehensive land plan, conditional use/variances required - that the property being discussed is a valuable piece of property to the City. He also noted that public hearings need to be held; the pieces will then come together with the monies collected to pay down the debt on the new city garage. Council member Sheddy commented that he is counting on this Council to make sure the proper hoops are jumped through such as, 1. proposed looks of entrance; 2. what would benefit the City. The City of Ely had received only one formal offer to purchase this property, that from Mauro Caruso, that the EEDA voted unanimously to proceed with the process of selling this property to Mauro Caruso for $200,000. Council member Zupec referenced the "triangle" utilized at a recent LMC Seminar, noting the City needs to stick with the current comprehensive plan to include zoning compliance. Council member Lindroos noted that he had just reviewed recent letter from City Attorney Bentz on this matter. Council member Zupec reaffirmed his commitment to work with Mauro Caruso on his proposal. Council member Omerza stated that she feels uncomfortable with a lot of things that have recently taken place as far as negotiations for this property, and her voting no on this matter has nothing to do with Mauro Caruso or his proposal, but if other interested parties would have come forward with proposals for $200,000, the EEDA should look at all of the proposals. Mauro Caruso noted for the record that he has spoken to no one on this proposal other than the two minute meeting he had with the EEDA Negotiating Committee. <BR><BR>EEDA recommendation to direct City Attorney to draft up a development agreement for above land sale. Moved by Nikkola supported by Zupec, that the Council task the City Attorney to document the process the City used in the sale of city property to JMW ( Pamida project), and to bring this documented process back to the Council for review and discussion.<BR><BR>YES: Council members Debeltz, Lindroos, Nikkola, Sheddy, Zupec, Mayor Novak (6)<BR><BR>NO: Council member Omerza (1)<BR><BR>ABSENT: None (0)<BR><BR>Motion carried. * The process for the sale of city property will be discussed at the Ely City Council Tuesday, May 27th Regular Monthly Study Session.<BR><BR>Council member Nikkola recommended that in everyone's best interest, the City needs to step back and take a look at this whole process, and discuss thoroughly at the next Ely City Council Study Session. <BR><BR>Council member Sheddy stated that he has an issue that if a business person steps up and makes a formal offer for city property, what is the advantage to this person in stepping forwarded to make offer, if others can then follow lead. He feels that the proposal offered by Mauro Caruso fits the City's criteria for appearance, jobs, and being a project in the best interests of the City of Ely. He further noted that this individual spent the time and money in putting together and producing this idea.<BR><BR>Council member Omerza stated that she agrees wholeheartedly with Council member Sheddy's observation, but there are more issues that need to be resolved so the City can move forward.<BR><BR>EEDA rescheduling the June EEDA Meeting to Monday, June 9, 2008, 7:00 P.M. Council Chambers of the Ely City Hall - INFORMATION;<BR><BR>EEDA recommendation to sell Lots 3, 4, Ely Business Park, to Duluth Metals for $30,000. Moved by Sheddy supported by Debeltz, that recommendation be approved. Carried unanimously. Council member Sheddy noted that the same procedure will be utilized in this sale of property as that of the JMW sale ( Pamida project), with public hearings and City Attorney working with the Planning and Zoning Commission on current inconsistencies in the Business Park Ordinance.<BR><BR>EEDA recommendation to direct City Attorney to draft up a development agreement for Ely Business Park land sale to Duluth Metals. Moved by Debeltz supported by Lindroos, that recommendation be approved. Carried unanimously.<BR><BR>Mayor Novak requested a recess in tonight's meeting agenda at 7:55 P.M. until 8:05 P.M. for recording tape change. Council members concurred.<BR><BR>Meeting reconvened at 8:05 P.M.<BR><BR>Council member Lindroos requested placement on tonight's agenda regarding current Fire Contract issues. He informed Council members that the Fire Committee had met last Thursday, and there was not a lot of new discussion. Morse and Fall Lake Townships are going to be spending more monies on a new fire department than if contracting with the City of Ely. Council member Lindroos does not understanding their thought process on this issue as ISO/Insurance Rates will be added to increased equipment purchase costs. He reported that there is still some interest in a fire district. Council member Debeltz questioned that if the Town of Morse and Fall Lake Township go forward with their own fire department, what additional dollars would the Ely residents have to pay to retain the City's current fire department. Council member Lindroos noted that the City could cut back on the current Fire Department if need be; there is a 2% increase. Moved by Lindroos supported by Debeltz, that City Attorney Bentz be directed to draft fire contracts between the City of Ely and current entities for 2009 to be distributed and required to be returned properly executed, to the City of Ely by July 31, 2008 deadline.<BR><BR>Carried unanimously.<BR><BR>Council member Omerza offered the following resolution: Resolution 2008 - 21<BR><BR>WHEREAS: Young Life, Ely PO BOX 645, Ely, Minnesota 55731, has applied for a Minnesota Lawful Gambling Application to conduct a BINGO on July 4, 2008, at Ely Whiteside Park, 700 Block of East Sheridan Street, Ely, Minnesota, 55731, and<BR><BR>NOW, THEREFORE BE IT RESOLVED: That the City of Ely approves of said application and that Young Life, Ely be authorized to submit the necessary paperwork to the State of Minnesota Department of Gaming, Gambling Control Division.<BR><BR>Motion for the adoption of the foregoing resolution was made by Council member Omerza, seconded by Council member Debeltz, and declared carried on the following vote:<BR><BR>YES: Council members Debeltz, Lindroos, Nikkola, Omerza, Sheddy, Zupec, Mayor Novak (7)<BR><BR>NO: None (0)<BR><BR>ABSENT: None (0)<BR><BR>Adopted this 20th day of May 2008.<BR><BR>The Deputy Clerk provided Council members with a copy of memo received from Mary Frances Skala, Fryberger, Buchanan, Smith and Frederick, P.A. regarding Equipment Financing Options for the City of Ely. In summarizing General Obligation Bonds verses Installment Purchase Contracts or Lease Purchase Agreements, she cautioned Council members that the City can only go back 60 days from closing to capture capital expenses, which is a requirement of the Internal Revenue Code applicable to tax exempt financing, but requirement does not apply to preliminary expenditures such as legal, engineering, financial advisory and the lake, but that the IRS does provide an exception to the 60 day rule in that if an issuer adopts a resolution ( a "reimbursement resolution") generally describing the capital expenditures ( items to be purchased or improvements to be made) to be incurred and indicates the maximum amount expected to be issued to pay the expenses, an issuer has three years to make the reimbursement from tax exempt bond proceeds if the size of the issue is less than $5,000,000. If the issue size exceeds $5,000,000 the reimbursement period is 18 months, but she believes the City would be subject to the three year limit.<BR><BR>Council member Nikkola offered the following resolution: Resolution 2008-22<BR><BR>Resolution Making A Declaration Of Official Intent Under U.S. Treasury Regulations Section 1.150-2<BR><BR>WHEREAS: The Internal Revenue Code of 1986, as amended and Treasury Regulations Section 1.150-2 promulgated thereunder ( the "Reimbursement Rules"), require that in order for an issuer to use the proceeds of an issue of tax-exempt obligations to reimburse an original expenditure paid before the issue date of the obligations, an issuer must adopt an official intent for the original expenditure not later than 60 days after payment thereof; and<BR><BR>WHEREAS: The City of Ely, Minnesota ( the "City") is a governmental unit with bond issuing powers, and<BR><BR>WHEREAS: The City intends to finance the acquisition of items of capital equipment <BR><BR>( the "Project"), from proceeds of an issue of tax-exempt obligations ( the "Obligations"); and<BR><BR>WHEREAS: It may be necessary for the City to temporary finance certain costs of the Project by using either working capital and cash reserves which will be needed for other purposes or temporary loans from financial institutions or others prior to the issuance of the Obligations.<BR><BR>NOW, THEREFORE, be it resolved by the City as follows:<BR><BR>The maximum principal amount of the Obligations is $250,000,000.<BR><BR>The City reasonably expects to incur expenditures with respect to the Project in advance of issuance of Obligations.<BR><BR>The City reasonably expects that expenditures for the Project will be reimbursed from the proceeds of the Obligations.<BR><BR>The reimbursement will occur not later than three years after the later of the date the original expenditure was paid or the date the Project is placed in service or abandoned.<BR><BR>The City has not previously adopted a resolution under the Reimbursement Rules for a project, the costs of which were not paid from the proceeds of an issue of tax-exempt bonds.<BR><BR>Motion for the adoption of the foregoing resolution was made by Council member Nikkola, seconded by Council member Zupec, and declared carried on the following vote:<BR><BR>YES: Council members Debeltz, Lindroos, Nikkola, Omerza, Sheddy, Zupec, Mayor Novak (7)<BR><BR>NO: None (0)<BR><BR>ABSENT: None (0)<BR><BR>Adopted this 20th day of May 2008.<BR><BR>Council member Debeltz offered the following ordinance: Proposed Ordinance #219, Second Series, An Ordinance of the City of Ely, Minnesota, Adding to the Ely City Code, Chapter 2, Section 2.62, Entitled Combined City Projects, Land, Streets and Infrastructure Committee.<BR><BR>The Council of the City of Ely Does Hereby Ordain:<BR><BR>Section 1. A new Section shall be added to Chapter 2 as Section 2.62 of the Ely City Code to read as follows:<BR><BR>Sec. 2.62 City Projects, Land, Streets and Infrastructure Committee<BR><BR>Subd. 1. Establishment and Composition. A new committee is hereby established wherein the two current committees known as the Ely Community Projects Committee, and the City Streets and Infrastructure Committee, shall be combined into one Projects, Streets and Infrastructure Committee. Said Projects, Land, Streets and Infrastructure Committee shall be composed of eleven (11) members, consisting of the City Operations Director of Public Works and Utilities, two (2) Council Members, two (2) EUC members, one (1) EADA representative, one (1) Planning and Zoning Commission Member, and four (4) citizens at large who shall serve for a term of two (2) years with staggered term appointments; and each member shall be nominated by the Council pursuant to Section 11.01 (b) of the Charter of the City of Ely.<BR><BR>Subd. 2. Powers and Duties.<BR><BR>SECTION 2. Effective Date: Pursuant to Section 3.08 of the Charter of the City of Ely, Minnesota, the adoption of this Ordinance is effective immediately after final adoption and publication.<BR><BR>Motion for the adoption of the foregoing ordinance was made by Council member Debeltz, seconded by Council member Nikkola, and declared carried on the following vote:<BR><BR>YES: Council members Debeltz, Lindroos, Nikkola, Omerza, Sheddy, Mayor Novak (6)<BR><BR>NO: Council member Zupec (1)<BR><BR>ABSENT: None (0)<BR><BR>Proposed Ordinance #219, Second Series, adopted and given a first reading and publication, this 20th day of May 2008.<BR><BR>Council member Zupec qualified his no vote by stating that he does not feel it normal process to combine two special committees into one - committees should stay either special or standing.<BR><BR>Council member Sheddy reported that the Buildings Facility Group had met and formally approved making the following recommendation to the Council: that the City proceed to utilize an architect in determining where to place an elevator at the Ely City Hall, and also the placement of one restroom to be made ADA accessible. Moved by Omerza supported by Sheddy, that recommendation from the Buildings Facility Group to proceed with working with an architect as to the placement of an elevator at the Ely City Hall, and also that a restroom be made ADA compliant at Ely City Hall be approved, and that the architect work with the City Budget Committee and other funding agencies as to funding options for the City of Ely in obtaining this elevator and ADA restroom compliance for the Ely City Hall. Moved by Zupec that the following amendment be included in the original motion; that the Ely Community Center also be included for an elevator and ADA restroom compliance. For lack of a support, the amendment was declared lost. Original motion was carried unanimously.<BR><BR>Council member Zupec asked whether the Buildings Facility Group had discussed an elevator for the Ely Community Center, as for the past 21 years he has been trying to get an elevator in that building, and the building will generate revenue. Council member Sheddy reported that the Group had not discussed the Community Center, feeling that most of the Ely City Hall is being occupied, that Ely City Hall has a new roof, needs less maintenance at this time, and that Group will be moving on a ten year plan on the Ely City Hall Building. He also noted that the Group is working on recommendations to Council as to what the City now needs. City Operations Director of Public Works and Utilities also commented that most of the City's public meetings are now being held at Ely City Hall, that the Community Center is currently somewhat accessible, but this will be an ongoing discussion in the months to come. Council member Nikkola stated that he cannot see where the City has funds to look beyond an elevator for the Ely City Hall, with Council member Zupec noting that he feels the City could have these funds by creating a Ely History Center at the Ely Community Center. The Council recommended that the Chapman Street Redevelopment Committee discuss the latter proposal at one of their upcoming meetings. It was the consensus of the Council that the Buildings Facility Group complete their study and make recommendations to the Council. Council member Sheddy noted that there are roof problems at the Community Center that need to be taken care of. Council member Nikkola stated that the Ely History Center is a great idea if there is some organization out there that wants to move forward with this concept; the Council cannot be that organization. <BR><BR>Notification was received from the League of Minnesota Cities of upcoming vacancies on the Board of Directors. Moved by Nikkola supported by Debeltz, that the Council authorize Mayor Novak to apply for an open vacancy on the LMC Board of Directors, if he so chooses. <BR><BR>YES: Council members Debeltz, Lindroos, Nikkola, Omerza, Sheddy, Zupec (6)<BR><BR>NO: Mayor Novak (1)<BR><BR>ABSENT: None (0)<BR><BR>Motion carries.<BR><BR>Council member Omerza presented Mayor Novak and the Council Members with a memorandum informing them that she will be unavailable for City business starting on May 23rd, for a short period of time, and that she has asked the Deputy Clerk to collect all correspondence directed to her, and will have these items picked up regularly. She requested that if there is something that requires her immediate attention, to please let the Deputy Clerk know. She further requested that as the President of the EEDA and in light of a very complicated situation, she is requesting that no Special Meetings of the EEDA and Ely City Council be called in her absence if pertaining to land proposals/sales.<BR><BR>Moved by Omerza supported by Debeltz, that requests be approved.<BR><BR>YES: Council members Debeltz, Nikkola, Omerza, Sheddy (4)<BR><BR>NO: Council members Lindroos, Zupec, Mayor Novak (3)<BR><BR>ABSENT: None (0)<BR><BR>Motion carried.<BR><BR>Council member Zupec stated that he does not feel comfortable with Council member Omerza's request, with Council member Nikkola also stating that in spirit the motion was made and passed, but there may be something that does come up that needs to be addressed, and if an emergency does come up, the motion will be overridden. <BR><BR>Moved by Nikkola supported by Omerza, that tonight's meeting adjourn.<BR><BR>Carried unanimously. Adjournment at 8:30 P.M.<BR><BR>Patricia M. Wellvang<BR><BR>Deputy Clerk<BR><BR>City of Ely<BR><BR>Ely Echo 5/31/2008