November 18 City Council meeting minutes

DRAFT MEETING MINUTES<BR><BR>Council Chambers<BR><BR>Ely, Minnesota<BR><BR>Tuesday, November 18, 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 thanked tonight's audience present for attending tonight's Council Meeting; also the viewing audience over public access Channel 11.<BR><BR>Moved by Zupec supported by Debeltz, that the minutes of the regular meeting of November 6, 2008, be approved without reading. Carried unanimously. Minutes to stand as recorded.<BR><BR>The following addition was added to tonight's agenda: Clerk-Treasurer Terri Boese, request to attend MnGFOA Quarterly Training Seminar, Generating Non-Tax Revenues, Techniques, Issues and Case Studies, which will be taking place on November 19, 2008, in Minneapolis, Mn. It was Council consensus that this item be added to tonight's agenda under E. Consent Agenda Items, #7.<BR><BR>The following consent agenda items were brought before the Council for approval:<BR><BR>Northern Lakes Food Bank - request for donations - INFORMATION;<BR><BR>Ross Peterson - Meeting at VCC - Monday, November 24th - 9:00 A.M. Herb Ohrt ( Stanley Consultants) re: municipal heating project using Zenith 3 mining water;<BR><BR>CGMC Legislative Lobbying Day and Reception ( Jan. 14, 2009 - St. Paul, MN); Annexation and Land Use Conference ( January 5, 2009 - Mpls., MN) - ( Mayor and Council members authorized to attend);<BR><BR>Police Chief Manning - successful completion of probationary period for police officer Dennis Koponen;<BR><BR>Don Langan, Supt. of Schools, Ely - letter of thanks to City of Ely for donation to Ely Community Education for 2008 - INFORMATION;<BR><BR>Lolita Schnitzius, LMC Representative - RAMS Legislative and Priority Setting Meetings ( Wednesday, December 3rd, AEOA Building, Virginia); RAMS Holiday Meeting ( Thursday, December 11th, AEOA Building, Virginia) - <BR><BR> ( Mayor and Council members authorized to attend);<BR><BR>Minnesota Government Finance - Quarterly Training Session, November 19, 2008, Minneapolis, MN ( Clerk-Treasurer Terri Boese authorized to attend);<BR><BR>Moved by Zupec supported by Debeltz, that above items be approved and ordered filed. Carried unanimously.<BR><BR>Mr. Tom Simmons, Senior Vice President of Midcontinent Communications, requested placement on tonight's agenda requesting Council approval in the transfer of Charter Communications Franchise to Midcontinent Communications. Tucker Carlson ( Charter Communications) and himself had met with the Telecommunications Advisory Board prior to tonight's Council Meeting. Midcontinent Communications was originated in 1931, building the first cable system in Pierre, South Dakota. Midcontinent is a regional company involved in theater, radio, television businesses. The company is requesting a positive ruling from the City of Ely to transfer this request. The company would be looking at acquiring the current Charter employees in the Ely area. Mayor Novak noted that the area Charter employees are of high quality and offer good response time to calls placed requiring their assistance. Council member Omerza reported that Tucker Carlson, Tom Simmons and the Telecommunications Advisory Board Members had a wonderful discussion and the TAB is officially recommending that the Council adopt proposed resolution transferring current franchise with Charter Communications to Midcontinent Communications. <BR><BR>Council member Omerza offered the following resolution: 2008- 43<BR><BR>Consent and Approval of Local Franchising Authority to Assignment of Cable Franchise and System<BR><BR>WHEREAS: CC VIII Operating, LLC ("Grantee") owns, operates and maintains a cable communications system ( the "System") in the City of Ely ( "Grantor"), pursuant to a franchise as set forth in Cable Television Franchise Agreement, dated 5/7/2002<BR><BR>( Franchise"); and<BR><BR>WHEREAS: on October 7, 2008, Grantee entered into an Asset Purchase Agreement <BR><BR>( the "Agreement") with Midcontinent Communications ("Buyer") pursuant to which Buyer will purchase and acquire certain assets, including the Franchise and System, from Grantee ( "transaction") upon the closing of the Transaction contemplated under the Agreement ( the "Closing Date"); and<BR><BR>WHEREAS: Grantee and Buyer have requested that the Grantor consent to the Transaction in accordance with the requirements of the Franchise and applicable law to the extent such consent is required, have filed a complete FCC Form 394 with the Grantor, and have provided all information required by applicable law (the "Application"); and<BR><BR>WHEREAS: Grantor has reviewed the Application and has determined that the Buyer has the legal, technical, and financial qualifications to operate the cable system under the Franchise and all applicable local, state and federal laws; and<BR><BR>WHEREAS: the Grantor has determined that it will consent to the Transaction and will waive any rights it may have to acquire the System.<BR><BR>NOW, THEREFORE BE IT RESOLVED the City of Ely, that in consideration of the foregoing and the promises set forth herein;<BR><BR>Grantor consents to the Transaction to the extent required by the terms of the Franchise or applicable law.<BR><BR>Grantor conforms that (a) the Franchise is valid and outstanding and in full force and effect and the Grantee is the duly authorized holder of the Franchise; (b) Grantee has properly invoked its franchise renewal rights under Section 626 of the Cable Communications Policy Act of 1984, as amended; (c) the Franchise represents the entire understanding of the parties and the Grantee has no obligation to the Grantor other than those specifically stated in the franchise; (c) the Franchise represents the entire understanding of the parties and the Grantee has no obligation to the Grantor other than those specifically stated in the franchise; (d) Grantee is in compliance with the provisions of the Franchise and applicable law; and (3) there are no facts or circumstances known to the Grantor which constitutes or which, with the giving of notice or passage of time or both, would constitute a breach of the Franchise or applicable law. <BR><BR>Grantor hereby consents to and approves the assignment, mortgage, pledge or other encumbrance, if any, of the Franchise, System or assets relating thereto, or of the interests in the permitted holder thereof, as collateral for a loan.<BR><BR>The Grantor releases Grantee, effective upon the Closing Date, from all obligations and liabilities under the Franchise and applicable law that accrue on and after the Closing Date; provided that Buyer shall assume and be responsible for any obligations and liabilities under the Franchise and applicable law that accrue on and after the Closing Date.<BR><BR>Grantor hereby acknowledges the sufficiency of notice and information provided by Grantee and Buyer regarding the Transaction and waives any right to purchase the System that it may have soley for purposes of this transaction.<BR><BR>This Resolution shall have the force of a continuing agreement with the Grantor, Grantee, and Buyer, and Grantor shall not amend or otherwise alter this Resolution without the written consent of Grantee and Buyer.<BR><BR>This Resolution shall take effect immediately.<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 18th day of November 2008.<BR><BR>Eric Mayranen requested placement on tonight's agenda regarding his October 27th letter provided Council Members as to the status of the City of Ely's forest lands. He noted that currently there is a demand for forest products, but would advise the City waiting until late summer or early fall, as fuel prices will be down and the demand for forest products may increase. Council member Zupec stated that he wanted to make sure the Council keeps this situation under the City's radar, with Eric requesting that the City contact him at least two months prior to project starting date. He noted that the Lucky Boy Area is in decline, but he would leave the red and white pine in that specific area. The Airport has areas that are over mature, but he will keep on monitoring this area; the East End/old airport site, is also a mature area. He further stated that in discussing the Dorothy Molter cabin area with Sarah Levar, she felt that a harvest would be a good idea in that area also. Council member Zupec stated that he was concerned to have a plan in place- there is a bio mass potential for other property. Eric suggested contacting the bio mass people to cut the brush / bail - 180 acres farming for bush. He is able to develop a forest management plan. Mayor Novak stated that he is concerned about trees around the Molter Museum being taken down, and the more management we put on, the better it will be for the community. He complimented Eric on the good job he has done and is doing for the City of Ely, with Council consensus that Eric Mayranen continue to act as forest manager.<BR><BR>Council member Omerza reported on behalf of the Ely Cemetery Committee: Committee members are requesting that the City Attorney be directed to update the current cemetery deed. Moved by Omerza supported by Zupec, that the City Attorney be directed to delineate the current cemetery boundaries in legal form. Carried unanimously.<BR><BR>Council member Sheddy reported that the City Christmas tree has been cut down by the City; JJ Day has hauled tree to Whiteside Park; the Ely Greenstone Arts Committee along with local grade schools will be making ornaments for the tree. The Whiteside Park Skating Rink will be worked on with Leustek and Sons loaning the City a heated trailer for concessions ( for non profits). Council member Sheddy also thanked WELY Radio at this time. Council member Zupec recommended that the City of Ely send letters of appreciation to Leusteks, JJ Day, WELY, Ely Greenstone Arts Committee. Council member Sheddy noted that there will be an ad in the papers thanking all those involved with the project. <BR><BR>Clerk-Treasurer Boese requested council approval in signing a Liability Coverage Waiver Form noting that the City does not waive the monetary limits on municipal tort liability established by Minnesota Statutes 466.04, relative to insurance coverage with the LMCIT. Moved by Zupec supported by Omerza, that request be approved. Carried unanimously.<BR><BR>Clerk-Treasurer Boese requested council approval of City and EUC bills and payroll for the first half of November 2008, totaling: ( General Fund - $157,485.82); (EUC - $209,367.67). Moved by Debeltz supported by Sheddy, that bills and payroll be allowed and paid. Carried unanimously.<BR><BR>City Operations Director requested approval of the following EUC Consent Agenda Items:<BR><BR>Rescheduled the next regular EUC meeting to Tuesday, November 25, 2008 at 4:45 P.M.<BR><BR>Authorized required testing for four utility vehicles from Diversified Inspections / ITL for $1,260.00;<BR><BR>Approved the purchase of water main repair materials for $2,279.28 from Minnesota Pipe and Equipment;<BR><BR>Approved payment of October 2008 bills for $204,988.01;<BR><BR>Approved payment of Terry's Operational Services, October 2008 Invoice, for $550.00.<BR><BR>Moved by Zupec supported by Nikkola, that items be approved and ordered filed. Carried unanimously.<BR><BR>The following claims for payment were brought before the Council for approval:<BR><BR>Paul Ness, Consultant<BR><BR>Invoice - 08-041 - Meeting/Trip to Ely for Job Descriptions Update - $400.00;<BR><BR>Invoice - 08-042 - Hiring Assistance for Accounting Clerk - $297.00 <BR><BR>WSB and Associates - Pay Voucher - Leustek and Sons Inc. - Runway Safety Area - 9/11/08 - 10/31/08 - $93,878.05 * contingent upon Airport Commission approval<BR><BR>Klun Law Firm - Inv. #14325 - New Pamida Store - $207.90<BR><BR>Moved by Debeltz supported by Zupec, that above claims be approved and ordered filed. Carried unanimously.<BR><BR>Moved by Omerza supported by Zupec, that the Council waive readings in their entirety, of all ordinances and resolutions on tonight's agenda. Carried unanimously.<BR><BR>Council member Omerza offered the following ordinance: Proposed Ordinance #226, Second Series, An Ordinance of the City of Ely, Minnesota, Amending The Ely City Code, Chapter 5, Section 5.60, Entitled Exclusions From License Limits.<BR><BR>The Council of the City of Ely Does Hereby Ordain:<BR><BR>SECTION 1. Section 5.60 of Chapter 5 of the Ely City Code shall be amended to read as follows:<BR><BR>Sec. 5.60. Liquor and On Sale Wine License Restrictions, Regulations and Unlawful Acts.<BR><BR>Subd. 1. Limitations on Issuance of Licenses to One Person or Place.<BR><BR>No off-sale liquor license may be issued to any one person for more than one place in the City. Any person holding an interest in two or more such licenses in the City shall be deemed to hold more than one license.<BR><BR>For the purpose of this Subdivision, the term "interest": (1) includes any pecuniary interest in the ownership, operation, management, or profits of a retail liquor establishment, and a person who receives money from time to time directly or indirectly from a licensee, in the absence of consideration and excluding gifts or donations, has a pecuniary interest in the retail business; and, (2) does not include loans; rental agreements; open accounts or other obligations held with or without security arising out of the ordinary and regular course of business of selling or leasing merchandise, fixtures, supplies to the establishment; an interest in a corporation owning or operating a hotel but having at least 150 or more rental units holding a liquor license in conjunction therewith; or ten percent or less interest in any other corporation holding a license.<BR><BR>In determining whether an "interest" exits, the transaction must have been bona fide and the reasonable value of the goods and things received as consideration for a payment by the licensee and all other facts reasonably tending to prove or disapprove the existence of a purposeful scheme or arrangement to evade the restrictions of this Subdivision must be considered.<BR><BR>Subd. 2. Licenses in Connection with Premises of Another. A license may not be issued to a person in connection with the premises of another to whom a license could not be issued under the provisions of this Chapter. This Subdivision does not prevent the granting of a license to a proper lessee because the person has leased the premises of a minor, a non-citizen who is not a resident alien, or a person who has been convicted of a crime other than a violation of this Chapter.<BR><BR>Subd. 3. Employment of Minors. No person under eighteen (18) years of age may sell or serve liquor or wine on licensed premises. <BR><BR>Subd. 4. Premises Eligible. On-sale wine licenses shall be granted only to restaurants defined in this Chapter. Provided, however, for purposes of this Section, such restaurant shall have appropriate facilities for seating not less than thirty guests at one time.<BR><BR>Subd. 5. Number of Licenses. The Council shall issue no more than a total of nine (9) on-sale liquor licenses.<BR><BR>Subd. 6. Intoxicating Malt Liquor Sale Without License. The holder of an on-sale wine license issued pursuant to this Chapter who is also licensed to sell beer at on-sale, and whose gross receipts are at least sixty percent attributable to the sale of food, is authorized to sell intoxicating malt liquor at on-sale without an additional license.<BR><BR>Subd. 7. Exclusions from license limits. The Council, in its discretion, may issue on-sale intoxicating liquor licenses to the following entities, in addition to the number authorized by Subd. 5:<BR><BR>clubs, or congressionally chartered veterans organizations;<BR><BR>restaurants;<BR><BR>establishments that are issued licenses to sell wine under Minn. Stat. Section 340A.404, subd. 5;<BR><BR>theaters that are issued licenses under Minn. Stat. Section 340A.404;<BR><BR>hotels; and<BR><BR>bowling centers<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 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>Proposed Ordinance #226, Second Series, adopted and given a second and final reading and publication, this 18th day of November 2008.<BR><BR>Salerno Appraisal Services presented the Council with an updated appraisal on the old county garage property ( West entry way into Ely). It was noted that the appraisals shows this property is valued significantly higher than the offer that was put out on the table. Attorney Kelly Klun also noted that if the City were to approve of current offer on table, a subsidy agreement would be required, and a time issue would then be involved. Matter of information.<BR><BR>At the November 10, 2008 EEDA Meeting, the EEDA approved of forwarding the five priorities from City of Ely Goals and Objectives List, to Community Joint Powers Board:<BR><BR>Develop and implement an area wide strategy in support of expected local mining initiatives;<BR><BR>Spearhead efforts to ensure timely upgrade of state highway 169 utilizing federal support with state matching funds;<BR><BR>Assist local school district in timely effort to repair/upgrade ice arena;<BR><BR>(Grant/low interest loan applications, volunteer labor etc.);<BR><BR>Support completion of Mesabi Trailhead;<BR><BR>Complete an area housing stock study.<BR><BR>Moved by Nikkola supported by Lindroos, that the five priorities recommended by the EEDA listed above, be forwarded to the Community Joint Powers Board for consideration. Carried unanimously. Clerk-Treasurer Boese was requested to have items typed up and submitted to the Community Joint Powers Board prior to their 4:00 P.M. November 24th Meeting, at the Tech Center.<BR><BR>Moved by Omerza supported by Debeltz, that the meeting adjourn.<BR><BR>Carried unanimously. Adjournment at 7:10 P.M.<BR><BR>Patricia M. Wellvang<BR><BR>Deputy Clerk<BR><BR>City of Ely<BR><BR>Ely Echo 11/29/2008