Ely City Council meeting on Dec. 2, 2008

Council Chambers<BR><BR>Ely, Minnesota<BR><BR>Tuesday, December 2, 2008<BR><BR>6:30 P.M. Regular Meeting<BR><BR>Ely City Council<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 the audience present at tonight's meeting and<BR><BR>the audience viewing the meeting over public access Channel 11.<BR><BR>Moved by Zupec supported by Debeltz, that the minutes of the regular meeting of November 18, 2008 be approved without reading. Carried unanimously. Minutes to stand as recorded.<BR><BR>The following additions were added to tonight's agenda: Mayor Novak - Resolution <BR><BR>2008 - 44, A Resolution In Support of the PolyMet Mining Project - this addition to be placed under VIII. New Business, Item D; Tim Brennan - request for On Sale/Sunday On Sale Liquor License for Ely Bowling Center, 43 East Chapman Street, Ely - this addition to be placed under VIII. New Business, Item E; Memorandum from Fire Chief Louis Gerzin regarding Town of Morse/Fall Lake 1st responders - this addition to be placed under VII. Old Business, Item A. Council members concurred with above additions.<BR><BR>Mayor Novak reported that the Tree Lighting Ceremony at Whiteside Park on<BR><BR>November 28th was very well attended, the Whiteside Park Skating Rink is ready to go<BR><BR>( recreation skating, no hockey sticks), and complimented Council member Gordon Sheddy on all his hard work in coordinating the Tree and Skating Facility at Whiteside Park. <BR><BR>The following consent agenda items were brought before the Council for approval:<BR><BR>Police Chief Manning - Successful completion of probationary period for Sandra Thom;<BR><BR>Authorization to post City of Ely Board/Commission/Committee vacancies;<BR><BR>Ely City Hall Departments - to be closed all day on December 24th; remain open all day on December 31st;<BR><BR>East Range Athletic Association - request for funding<BR><BR>Mayor and Council Members to donate on their own if they so choose to do so <BR><BR>Moved by Zupec supported by Nikkola, that above items be approved and ordered filed.<BR><BR>Carried unanimously.<BR><BR>Mike Hillman requested placement on tonight's agenda updating Council members on his grant application in process for the Miner's Dry and Captain's Dry. Mike noted that he had met with Nancy Larson on possible grant sources, along with pursuing ISTEA / Transportation Commerce Grant. He has also met with members of the Ely Winton Historical Society on putting together a photo exhibit ( Brownell collection) to be housed at the Miner's Dry ( rotating History and Art Exhibit). He will be meeting on December 11th in Ely, with Dan Jordan from the IRR Mineland Recreation Program, as to additional funding for the Miner's Dry. Mike stated that he feels the engine house is still salvageable, and would like to put together a separate grant for this project; requesting additional funding for the dry house through IRR Mineland Recreation Grant funding. Moved by Debeltz supported by Zupec, that Mike Hillman be authorized to put in a grant with the IRR Mineland Reclamation Program, for additional funding for the Dry House. Carried unanimously. Mike further reported that the former shaft house could be used for storage purposes. He has made contact with USX, and will be putting in a grant funding request with them prior to their deadline date. Mayor Novak stated that the Pioneer Mine is City of Ely property, and that all grant requests for this property need to be approved by the Ely City Council and coordinated with the City Operations Director and Clerk-Treasurer, such as Mike Hillman has been doing. <BR><BR>Council member Omerza questioned whether any individuals have put in requests to rent the Miner's Dry Building; City Operations Director reported that there has been inquiries, but that the city has not yet officially advertised this building for rent until the floor and acoustical tiles are installed. <BR><BR>Ely High School Band Director Justin Lindgren was present, representing the Ely Band Boosters. The organization will be hosting a fund raising dance at the Ely Community Center on January 24th, and is inquiring as to whether the Ely City Council would consider waiving the $75.00 rental fee along with janitorial charges, or consideration of a fee reduction for this non profit group. The proceeds raised from this fund raiser will be placed in the band uniform fund. Moved by Debeltz supported by Zupec, that the City of Ely waive all fees incurred with this event, with the stipulation that the organization perform the clean up of auditorium after event. Carried unanimously. It was noted that a City Employee needed to be on premise for this event, in lieu of a janitor on duty. Deputy Clerk Patti Wellvang volunteered to be the designated City Employee required, if a janitor was not scheduled for duty. Council member Lindroo noted that by waiving fees to utilize the Community Center Building, it will be more difficult in the future to stick to a plan as the more the City bends with each request, the more difficult it will be.<BR><BR>Council member Omerza questioned whether the Ely City Council officially acted on the Librarian's recommendation to the City Budget Committee that all non profit groups current utilizing the Community Center pay a rental fee. The Clerk's Office will <BR><BR>research Council member Omerza's request.<BR><BR>Council member Omerza reported on the Telecommunications Advisory Board Meeting of December 1st: Board has recommended that the City Attorney be tasked to see if there are any limitations that require the city to hold on to video archives of past council meetings, what if any, time requirements must be followed. Moved by Omerza supported by Sheddy, that recommendation be approved. Carried unanimously.<BR><BR>Moved by Omerza supported by Debeltz, that per recommendation of the Telecommunications Advisory Board, the City Attorney be directed to draft up a four month extension to the current contract between the City of Ely and Ely Public Access TV, to be placed on the December 16th Regular Ely City Council Meeting Agenda, for action. Carried unanimously.<BR><BR>Council member Nikkola reported on behalf of the Ely Rehab/Storefront Renovation Committee Meeting of November 26th: Committee is recommending that there be a $100.00 application fee for all parties applying for an Ely Rehab Loan, effective January 1, 2009. Moved by Nikkola supported by Sheddy, that recommendation be approved.<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>Motion carried.<BR><BR>Council member Omerza reported on behalf of the City Parks and Recreation Board Meeting of December 1st: both city skating rinks are flooded with appreciation to Kurt Mattila and Gordon Sheddy; the rink attendants will be on duty at the 11th Avenue skating facility starting Friday, December 5th. Matter of information.<BR><BR>The following items were referred to tonight's meeting from the November 26th Monthly Ely City Council Study Session:<BR><BR>1. Fire Contract - Per advice of the Fire Chief, the Council will provide the City of Winton and Stony River Township with a 90 day extension of current 2008 Fire Contract, effective January 1, 2009, with the City of Ely. The City Attorney's Office had sent out proposed 2009 Fire Contracts to the Town of Morse and Fall Lake Township this past summer, under Council direction that the contracts be executed and returned to the City of Ely by July 31, 2008, of which neither the Town of Morse or Fall Lake Township returned contracts. Mayor Novak questioned why the City of Winton and Stony River Township were not also sent out contracts per Council directive. The Deputy Clerk reported that since these two entities were the major players whom the City contracts with for fire service, the City Attorney had advised to send these contracts out first, to see if they would be executed, prior to sending out to the smallest entities, being the City of Winton and Stony River Township, as if these contracts were not returned, it would be a mute issue with the City of Winton and Stony River Township as to proposed contributions. It was the consensus of the Council that the City Attorney's Office develop and send out the 90 day extensions as discussed, to the City of Winton and Stony River Township for fire contract services with the City of Ely for 2009. *A proposed 2009 Fire Contract for the City of Winton and Stony River Township will be officially addressed for approval at the December 16, 2008 Regular Ely City Council Meeting. <BR><BR>2. Annexation - Council member Sheddy recommended that the City move towards annexing the old county garage property and 12 acres west, giving the City of Ely opportunity to expand on the West End. Moved by Sheddy supported by Nikkola, that the City of Ely direct the City Attorney to draft a joint resolution addressing orderly annexation, between the City of Ely and Town of Morse, for 60 acres / West End 12 acres / old county garage site ( 40 acres South of Parcel). <BR><BR>Carried unanimously.<BR><BR>Fire Chief Gerzin reported that Ferrelgas' properties are now in the Town of Morse and will be under Morse control; the City may want to take a look at this situation also.<BR><BR>Mayor Novak noted that Chief Gerzin made a point well taken.<BR><BR>Jack Alexander Complaint - City Operations Director has looked over this situation and will have a written recommendation for Council consideration, at the next business meeting. Matter of information.<BR><BR>Clerk-Treasurer Boese requested Council approval for City / EUC bills and payroll, for the second half of November 2008, in the amount of: <BR><BR>General Fund - prepaids/payroll- $356,696.60; EUC prepaids/payroll - $129,783.94.<BR><BR>Moved by Zupec supported by Debeltz, that bills and payroll be allowed and paid.<BR><BR>Carried unanimously.<BR><BR>The City Operations Director presented the following EUC consent agenda items:<BR><BR>Approved to deposit the $294,312.70 CD for the Electric Fund in a savings account. This money will be reinvested at a later date.<BR><BR>Approve the purchase of $2,000.00 of postage for the billing office.<BR><BR>Approved payment of $26,289.18 to North Central Services for the work completed for the Feeder 6 construction.<BR><BR>Approve payment of bills list for November 16, 2008.<BR><BR>Approve payment of RLK Inc. Harvey/Conan Alley Utilities Inv. - #9 - $233.03;<BR><BR>Approved payment of St. Louis County Inv. for September utilities - Inv. #13035 - $1,954.64 ( EUC share );<BR><BR>Approve KBM Inc. General Services Inv. #100847 for $71.00.<BR><BR>Approve KBM Inc. Feeder 6 Inv. #100848 for $2,777.14.<BR><BR>Approve payment of Mn Power October bill - $174,269.83<BR><BR>Moved by Zupec supported by Lindroos, that above items be approved and ordered filed.<BR><BR>Carried unanimously.<BR><BR>Communication was received from Scott Quick, Volunteer Board Member of the Ely Nordic Ski Club, regarding the Minnesota Department of Transportation highway sign, which has been purchased by the Club for the highway. The new sign is now in place, and the Club is requesting that the City allocate $548.00 from the Parks and Rec. Fund to pay for the sign. He noted that the ENA has many many upgrades and improvements to Hidden Valley through volunteer efforts and donations, with the Club greatly appreciating the support the City of Ely has provided, so that Hidden Valley continues to be a part of the community. Moved by Debeltz supported by Omerza, that request be referred to the City Budget Committee ( committee will be meeting on December 11th), with recommendation to full Council at the December 16th Regular Ely City Council Meeting. Carried unanimously.<BR><BR>Claim for payment was received from RLK Kuusisto Inc., for professional services on the Spaulding Phase 3, in the amount of $520.00. Moved by Debeltz supported by Zupec, that claim be allowed and paid. Carried unanimously.<BR><BR>Moved by Omerza supported by Zupec, that the Council dispense with readings in their entirety, of all ordinances and resolutions on tonight's agenda. Carried unanimously.<BR><BR>Fire Chief Gerzin had provided Council members with a memorandum regarding the response letter received from Nick Wognum, Clerk of the the Morse/Fall Lake Rural Protection Association, referencing mutual aid agreement regarding first responder funding. He noted that the information received for Council review was not accurate, and he wanted to advise Council members of the inaccuracies in the report, recommending that the City request a list of all Morse/Fall Lake 1st responder runs . Mayor Novak recommended that the $4,000.00 check be issued when the fully executed agreement is returned to the City of Ely. <BR><BR>Council member Zupec offered the following ordinance: Proposed Ordinance #227, Second Series, An Ordinance Of The City Of Ely, Minnesota, Adding To The Ely City Code, Chapter 20, Section 20.2.41, Authorizing The Sale Of Lots In The Proposed Plat of East Spaulding Phase III.<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, and the Mayor and Clerk/Treasurer are hereby authorized to execute a warranty deed and all other documents, and perform all acts, necessary for the sale of all lots in the proposed plat of East Spaulding Phase III, subject to the following conditions and sale prices:<BR><BR>No lot shall be further subdivided.<BR><BR>One primary structure, but no more than one, must be built upon each lot.<BR><BR>The primary structure shall be placed upon a permanent foundation or concrete slab.<BR><BR>All primary structures shall have a minimum ground floor living area of 1,200 square feet. Living area must be suitable for year round use, and is exclusive of basements, garages, decks, and seasonal porches.<BR><BR>A primary structure shall be constructed to substantial completion and a Certificate of Occupancy as required by Ely City Code and Minnesota Law shall be obtained within three (3) years of the date of closing. Failure by the buyer to substantially complete construction of a single family dwelling on the property and obtain a Certificate of Occupancy within three (3) years of the date of closing is deemed to be a default. Upon default, a conveyance from the City of Ely to the buyer shall be deemed null and void, ab initio, and title shall revert to the City of Ely. To enforce this remedy, City of Ely hereby accepts and reserves the right of re-entry and the right of reversion to the City of Ely. This remedy and the right to exercise it are within the sole discretion of the City of Ely and do not confer any rights to buyer. In the sole discretion of the City of Ely, the City of Ely shall have the option to enforce this right of re-entry and reversion upon buyer default. This right shall be exercised by the City of Ely by giving written notice to the buyer of City of Ely's intent to exercise the right of re-entry and reversion. Within 30 days following that notice, the buyer shall vacate the property and execute and deliver a Quit Claim Deed in recordable form to the City of Ely. Upon acceptance of the deed, the City of Ely shall pay to the buyer the original purchase price, without closing costs and without interest and without reimbursement for property taxes paid, and the City of Ely shall then be entitled to record the Quit Claim Deed from buyer. In the event the City of Ely chooses not to exercise the right of re-entry and reversion, the City of Ely shall have the right to seek damages from the buyer for the difference between the purchase price and the fair market value of the property at the time of buyer's default. These rights are in addition to and not a limit of any other rights of remedies the City of Ely may have at law or in equity.<BR><BR>Each lot shall be priced as follows:<BR><BR>Lot 1................$ 21,500.00<BR><BR>Lot 2................ 29,990.00<BR><BR>Lot 3................ 29,990.00<BR><BR>Lot 4............... 33,600.00<BR><BR>Lot 5............... 35,500.00<BR><BR>Lot 6............... 43,600.00<BR><BR>Lot 7............... 29,990.00<BR><BR>Lot 8............... 34,800.00<BR><BR>Lot 9............... 33,000.00<BR><BR>Lot 10............. 29,990.00<BR><BR>Lot 11............. 29,100.00<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 Zupec, 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 #227, Second Series, adopted and given a first reading and publication.<BR><BR>The following 2009 City of Ely Soft Drink and Cigarette Licenses were brought before the Council for approval: SOFT DRINK - Ely Steak House, Ely Steam Bath, Dee's Bar Inc., Sir G's Italian Restaurant, Ely Bowling Center, Vermilion College, VFW Post #2717, Jugoslav National Home, Holiday Stationstores, Boathouse Brewery , State Theatre, Dairy Queen Brazier, Cliff Wold Outfitting Co., CanadianWaters, Tony's Conoco, Blomberg Amoco, Stony Ridge/Shagawa Lake, Edward's Lucky Seven, Kwazy Wabbit, Wildlife Liquor, Canoe Country Outfitters, Wiseguy's Pizza, Pamida, Zupancich Brothers, Zaverl's Bar, Ely Bloomenson Community Hospital, Britton's Caf&#233;, Beaver's Liquor, Skube's Bait and Tackle, Pizza Hut, The Chocolate Moose, Ben Franklin, Mike's Drive In Liquor, Grand Ely Lodge, Voyageur 66, Dorothy Molter Museum, Kat's Drive In Liquor, Family Video, Triple J and T Enterprises, dba: Vertin's Caf&#233;, Oriental Orchid, Ely Northland Market, Front Porch Coffee and Tea Co., Subway; CIGARETTE - Ely Steakhouse, Dee's Bar, Holiday Stationstores, Boathouse Brewery, Blomberg Amoco, Edward's Lucky Seven, Wildlife Liquor, Kwazy Wabbit, Zupancich Brothers, Zaverl's Bar, Mike's Drive In Liquor, Voyageur 66, Kat's Drive In Liquor, Beaver's Liquor, Grand Ely Lodge, Prairie Fire Tobacco, Ely Northland Market. Moved by Debeltz supported by Zupec, that above licenses be approved pending proper paperwork and license fees. Carried unanimously.<BR><BR>Grant Agreement between the State of Minnesota and City of Ely was received, in the amount of $40,000.00 for expenses associated with the Ely Miner's Dry Building repairs project. Moved by Debeltz supported by Nikkola, that the Mayor and Clerk-Treasurer be authorized to execute grant on behalf of the City of Ely. Carried unanimously.<BR><BR>Council member Debeltz offered the following resolution: 2008- 44<BR><BR>Resolution In Support of the Polymet Mining Project <BR><BR>Resolved by the City Council of the City of Ely, that <BR><BR>WHEREAS: The City of Ely is aware that the PolyMet Mining Project is moving forward in the State and Federal environmental review and permitting process; and<BR><BR>WHEREAS: The City of Ely understands that the PolyMet Project needs to meet or exceed all of Minnesota's strict environmental standards; and<BR><BR>WHEREAS: Federal Legislation will allow PolyMet to purchase the surface ownership directly from the United States Forest Service; and<BR><BR>WHEREAS: The legislation specifically requires the USFS to purchase desirable private holdings within and adjacent to the Superior National Forest and to offset any loss of wetlands from the sale by the acquisition of wetlands within or adjacent to the forest; and<BR><BR>WHEREAS: The PolyMet Project will reuse and recycle all water during operation, eliminating any discharge to surface water; and<BR><BR>WHEREAS: The PolyMet Project will not require any additional tailing disposal area beyond those already developed at the Erie plant site; and<BR><BR>WHEREAS: The PolyMet Project wetland disturbance area has been significantly reduced and will be replaced as required by Minnesota Statute; and<BR><BR>WHEREAS: The PolyMet Project will manage and treat all wastes as determined appropriate through the environmental review process; and<BR><BR>WHEREAS: The company has stated intent to utilize the best mining and reclamation practices, coupled with clean and energy efficient metal recovery processing that does not include heap leaching or smelting; and<BR><BR>WHEREAS: It is anticipated that the PolyMet Project will create approximately 400 full time, long-term jobs in northeastern Minnesota; and<BR><BR>WHEREAS: It is anticipated that the PolyMet Project will require over 1 million hours of labor during its construction phase; and<BR><BR>WHEREAS: The PolyMet Project is anticipated to generate 500 spin-off jobs in St. Louis County alone; and<BR><BR>WHEREAS: It is anticipated that the PolyMet Project will contribute millions of dollars to local cities and school districts and the State through net proceed taxes, ad valorem taxes, occupational taxes and royalties; and<BR><BR>WHEREAS: The City of Ely recognizes the tremendous benefit the PolyMet Mining Project will provide to the region.<BR><BR>NOW, THEREFORE BE IT RESOLVED: That the City Council of the City of Ely strongly supports the PolyMet Mining Project.<BR><BR>Motion for the adoption of the foregoing resolution was made by Council member Zupec, 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 2nd day of December 2008.<BR><BR>Communication was received from Timothy Brennan, informing the Council members that he has signed a Purchase Agreement to purchase the Ely Bowling Center from Northview Bank. He will be operating the Bowling Center / Bar as a lessee until the planned closing of the real estate deal on May 1, 2009. As of that date, he will own the real estate also. He is preparing to open for business on December 29, 2008, and is requesting the On Sale / Sunday On Sale License that the former license holder held for the Ely Bowling Center. Moved by Debeltz supported by Omerza, that request be approved subject to filing of proper paperwork and license fee with the City and State.<BR><BR>Carried unanimously.<BR><BR>Moved by Omerza supported by Debeltz, that the meeting adjourn.<BR><BR>Carried unanimously. <BR><BR>Patricia M. Wellvang<BR><BR>Deputy Clerk<BR><BR>City of Ely<BR><BR>Ely Echo 12/13/2008<BR><BR>