Regular Meeting Ely City Council – City Hall, Council Chambers March 02, 2021

Regular Meeting Ely City Council – City Hall, Council Chambers
March 02, 2021

1. CALL TO ORDER
The regular City Council Meeting on March 2, 2021 was called to order by Mayor Novak at 5:30pm.

2. PRESENT: Council members A.Forsman, Kess, Omerza, Callen, Campbell via Zoom, and Mayor Novak
Absent: Council Member Debeltz

3. APPROVAL OF MINUTES:
Kess/Omerza moved to approve the minutes from the February 16, 2021 Regular Council Meeting and the February 11, 2021 Special Council Meeting. Motion Carried 6-0-1 with Debeltz Absent.

4. ADDITIONS OR OMISSIONS TO AGENDA:
A. Additions 7.B Ely Drop and Shop – Kristen Krings, Casey Moravitz, and Jennifer Cole
Addition A was added without objection.

5. MAYOR’S REPORT
Mayor Novak discussed some Legislative topics.

6. CONSENT AGENDA:
Omerza/Callen moved to waive readings in entirety of all ordinances and resolutions on tonight’s agenda. Motion Carried 6-0-1 with Debeltz Absent.

7. REQUESTS TO APPEAR:
A. NE Minnesota Mine Tour Project – Megan Christianson – Visit Grand Rapids(via Zoom), Sarah Carling –CEDA (Community & Economic Development Associates) (via Zoom) and Cindy Smyka – Ely Tourism Bureau
Sarah Carling indicated that they are here to talk about the NE Minnesota Mine Tour Project that is going to go from CrosbyIronton to Silver Bay. Carling indicated that this got started by community brainstorm sessions within Itasca County created the idea to help drive additional traffic to communities while displaying communities story “history” and utilizing untapped resources “mine pits.” We were looking for ways to provide a no cost, informative, family friendly or independent way to discover the area through an interactive user experience. There are 22 communities that could be impacted with a potential Mine Tour.
Megan Christianson went through some of the video mapping highlights for the Mine Tour which will have information regarding each location and the ability to navigate through an interactive map and will direct you to google maps to give driving, walking or biking directions to the site.
Carling discussed the goals of the project which are to help market and promote the mine areas to attract new visitors in NE Minnesota. Provide an interactive way to explore and learn about the active, inactive, and reclaimed mine areas. The goal is to generate a positive economic impact through travel and tourism while highlighting interesting geological sites that contain history and culture of the NE Minnesota area. Highlight interesting thing to do, trails to explore, and showcase businesses/amenities near the identified areas. New photo and video assets will be created, and these can be used by all project funders and partnering communities to help attract new visitors. The interpretive signs at each site will also have a QR code on them to be able to learn more information.
Carling discussed the community gain which would be additional visibility/marketing through video mapping and marketing campaigns. The ability to highlight up to 10 amenities within your community for additional promotions, things to do, trails to explore, and showcase businesses/amenities near the identified areas. Each community will be provided with all video and photography taken, which can be used for things such as, social media, updating websites or any other community/marketing needs. Updated interpreted signage in identified locations will be provided along with a regional marketing campaign.
Carling stated that they are asking for each community to donate at least $1000 marketing contribution to do the project, each community would receive approximately $6000 worth of marketing. Carling stated that several communities along the route have donated already.

Kess indicated that he appreciates the work that they are doing and it is important that we market the activities that are common to us. It may be may important to have the Ely Tourism Board to weigh in on this discussion. Kess said he doesn’t mind donating $1000 to show the City of Ely’s support for this project, but the long range the Ely Tourism Board should take an active role in funding some of these activities.
Cindy Smyka Executive Director of Ely Tourism Board indicated that this might be something the Tourism Board would be interested in. She stated that maybe this is something we can do collaboratively maybe matching funds. Smyka stated she would bring it back to the board to see what their thoughts are.
Mayor Novak indicated that we could potentially fund this through the EEDA.
Carling stated that they are also asking for a letter of support for the NE Minnesota Mine Tour Project.
Mayor Novak indicated that the City can give a letter of support for the project.

B. Ely Drop and Shop – Kristen Krings, Casey Moravitz, and Jennifer Cole
Krings indicated that they are asking for reinstatement of their 2nd Hand Goods License. Since the last meeting they have accomplished several things with their newly appointed board and owners, they have met with Chief Houde and have complied with everything that has been asked of them. Amanda Stevens employment has been terminated; she is no longer with the corporation. They have completed a new business license for each of the owners and that has been submitted to the clerk’s office.
Mayor Novak indicated that the general feel is to get the Drop and Shop open again. We have a resolution on the agenda; the conditions need to be met. The community wants Drop and Shop; we don’t want to see it permanently closed, but we need to make sure this doesn’t happen again.
Kess indicated that he understands that they have met with Chief Houde and there are some things that they need to agree to. Kess would hope rather than delaying it for another two weeks till our next meeting, we would empower the Police Chief and Clerk to be able to process the license when they get the items for the conditions met.
Attorney Klun indicated that the conditions of Resolution 2021020 are
a. Application for Conditional Reinstatement by the Licensee, in which all known owners sign;
b. Acceptable results of the standard background check of all known owners;
i. Current known owners are Kristen Krings, Casey Moravitz, Rosario Thole, and Tina Foster.
c. Written outline of procedures the business will utilize to ensure no same or similar events occur. Such procedures shall be writing and approved by the Chief of Police. Failure to follow these agreed up procedures shall constitute a violation of this conditional license;
d. Submission of a current owner and employee list, licensee shall within 5 days of a change of status notify the City as to current employees and owners. No employee or owner shall be of questionable moral character. Failure to update and/or qualify shall constitute a violation of this conditional license;
e. Written agreement to submit to reasonable ongoing and random administrative inspections. Failure to allow reasonable inspections shall constitute a violation of this conditional license; and
f. No same or similar occurrences. Any same or similar occurrences shall constitute a violation of this conditional license.
Attorney Klun indicated that she believes the outstanding items potentially are the written outline of procedures, which Krings was holding up in the audience. Attorney Klun stated that we can look at these conditions after the meeting and see where we are with the completion of the conditions.

8. COMMITTEE REPORTS:
A. Standing/Special
Heritage Preservation Commission
Campbell/Callen moved to approve the recommendation from the HPC that the Council approve the submission of grant requests for the Carl Gawboy Mural Recreation Project. The HPC will be applying to both the Donald G. Gardner Trust ($5000 limit) and the Arrowhead Arts Council ($5000 limit). These are redundant grants – assuming we are approved for one or both, only one will be used. Motion Carried 6-0-1 with Debeltz Absent.

Planning and Zoning Commission – Minutes included in the Council Packet

Budget Committee
Kess/Callen moved to approve the recommendation from the Budget Committee to accept the bid by Pathfinder Trail Building for $352,930 for the Hidden Valley Bike Trails. Motion Carried 6-0-1 with Debeltz Absent.

Kess/A.Forsman moved to approve the recommendation from the Budget Committee to allow purchase of the SATO HVAC upgrade from Gardner Temperature Controls for $9703.
Langowski indicated that this is part of the VA project and will get cocurrent approval from the EEDA.
Motion Carried 6-0-1 with Debeltz Absent.
Kess/Campbell moved to approve the recommendation from the Budget Committee to allow the purchase of an ID Maker from IDVille for $2567.51 using the drug and alcohol forfeiture funds. Motion Carried 6-0-1 with Debeltz Absent.

Ely Utilities Commission: Minutes included in the Council Packet

Telecommunications Advisory Board: Minutes included in the Council Packet

Employee Relations: Minutes included in the Council Packet

Cemetery Committee
Campbell/Kess moved to approve the recommendation from Cemetery Committee to approve the revised the Cemetery Rules and Regulations. Motion Carried 6-0-1 with Debeltz Absent.

9. DEPARTMENTAL REPORTS:
A. ClerkTreasurer
i. The following items were recommended for approval at the regular EUC meeting on February 24, 2021
1. Approved the Budget and Rates Committee recommendation for a 7% electric rate increase and hold steady on the water and sewer rates.
2. Approved the purchase of 155 load management relays from Eaton/Cannon Technologies for $29,248.50.
3. Approved payment of the AE2S Invoice for the WWTF Mercury Project for $100,017.16.
A.Forsman/Kess moved to approve the EUC Consent Agenda Items 13 from the February 24, 2021 meeting. Motion Carried 6-0-1 with Debeltz Absent.
A.Forsman stated that Minnesota Power has raised our electric rate by 7%.
Langowski indicated that we will have a rate hearing for the pubic to come discuss the new EUC rates.
Kess/Omerza moved to schedule a public hearing for the EUC Rates on March 16, 2021 at 5pm. Motion Carried 6-0-1 with Debeltz Absent.

ii. A.Forsman/Kess moved to approve the Advertising for Bids for the 2021 City Infrastructure Improvements and Water Tower Painting. Motion Carried 6-0-1 with Debeltz Absent.

Langowski indicated that the Rec Center Ice Rink is closed for the Season with the warm temps we have had.

B. Fire Chief

C. Library Director
Library Director Heinrich talked about Library announcements which can be found on the Library website.

D. Police Chief
Chief Houde indicated that the three new officers have been doing well. Chief Houde indicated that they had a department meeting and the officers toured the hospital and went through some potential scenarios.

E. City Attorney
i. Department Head Performance Review
Attorney Klun indicated that the Department Head Performance Review Rate Sheet is included in the packet; we are looking at having the reviews at the March Study Session. We will have all 4 reviews at the same time one after each other. Attorney Klun asked the council to turn in the rating sheet by March 22nd.
Omerza/Kess moved to have the department head performance reviews at the Study Session in March. Motion Carried 6-1 with Debeltz Absent.

Omerza/A.Forsman moved to approve the Performance Review rate sheet. Motion Carried 6-0-1 with Debeltz Absent.

F. City Engineer

10. COMMUNICATIONS: Matter of Information
A. Correspondence from Northwoods Partners regarding the Integrated Rural Aging Community Aging Program
B. Correspondence from FEMA regarding a Flood Risk Review
C. Correspondence from the Department of Transportation regarding the Transportation Alternatives funding for the Trezona and Semers Park Trail System Improvements.
Langowski stated that this was a long shot to get this funding. Celia Domich has worked hard at trying to get funding to repair the Pioneer Mine Retaining Wall, we will continue to look for funds for this project. We received a grant from the IRRRB for the Trezona/Semers Park Trail.

11. CLAIMS FOR PAYMENT:
A. Kess/Callen moved to approve the City and EUC claims for payment for March 2, 2021 for $160,364.59. Motion Carried 6-0-1 with Debeltz Absent.

12. OLD BUSINESS:
A. Resolution 2021020 Resolution and Order of the City of Ely, Minnesota Conditionally Reinstating the Secondhand Goods Store License Issued to the Ely Drop and Shop, Inc
Chief Houde indicated that he had a meeting with the owners of the Ely Drop and Shop. They agreed to a lot of the terms that he found acceptable, and in their communication just now they are going to add some concerns Chief Houde and Attorney Klun had their written outline.
Attorney Klun indicated that the Resolution is intending for staff to go to work, to make sure the conditions are met. With passing the resolution would be the last step the council needs to make to reopen the Drop and Shop. The next step would be for Chief Houde to sit down with the owners and finalize a couple of the items, and then they will be reinstated and we can reinstate the license.
Campbell/A.Forsman moved to approve Resolution 2021020 Resolution and Order of the City of Ely, Minnesota Conditionally Reinstating the Secondhand Goods Store License Issued to the Ely Drop and Shop, Inc.
Mayor Novak stated he has received some comments from the public and it is a benefit to have this business in town.
A.Forsman stated that he would like to make a couple comments regarding this, he indicated that as the background checks were done and submitted that there were items that were in the past that have come up, and it was discussed with the council members whether this was a question of moral of character or not. A.Forsman stated that he wants to make it clear that this is all about where we go forward from here, this is not just about the Ely Drop and Shop it is about each of the owners and workers individually and how you behave both at work and away from work. We want to see you all succeed as individuals and as a business and we want to make sure that it is something our community can be proud of. We hope you take this seriously and hope you know that we will act on anything that might come up afterwards.
Roll Called: Council Member A.Forsman Yes, KessYes, DebeltzYes, OmerzaYes, CallenYes, Campbell – Yes, and Mayor NovakYes. Motion Carried 6-0-1 with Debeltz Absent.

13. NEW BUSINESS:
A. Callen/Campbell moved to approve Resolution 2021017 Resolution Authorizing Submission of Gardner Trust Grant Request to Fund the Carl Gawboy Mural Reclamation Project in the City of Ely. Roll Called: Council Member A.Forsman Yes, Kess Yes, Debeltz Yes, Omerza Yes, Callen Yes, Campbell – Yes, and Mayor Novak Yes. Motion Carried 6-0-1 with Debeltz Absent.

B. Kess/Campbell moved to approve the Contract for Fiscal Sponsorship between the Ely Folk School and the Carl Gawboy Mural Reclamation Project which is devised and managed by the Ely Heritage Preservation Commission, a commission of the City of Ely. Motion Carried 6-0-1 with Debeltz Absent.

C. Callen/A.Forsman moved to approve Resolution 2021018 Resolution Authorizing Submission of Arrowhead Regional Arts Council Grant Request to Fund the Carl Gawboy Mural Reclamation Project in the City of Ely. Roll Called: Council Member A.Forsman Yes, KessYes, DebeltzYes, OmerzaYes, CallenYes, Campbell – Yes, and Mayor NovakYes. Motion Carried 6-0-1 with Debeltz Absent.

D. Omerza/Callen moved to approve Resolution 2021019 Resolution Authorizing City of Ely to Make Application to and Accept Funds from FY 21 Development Infrastructure Grant Program Roll Called: Council Member A.Forsman Yes, Kess Yes, Debeltz Yes, Omerza Yes, Callen Yes, Campbell – Yes, and Mayor Novak Yes. Motion Carried 6-0-1 with Debeltz Absent.

E. A.Forsman/Callen moved to approve Resolution 2021021 Resolution Formally Approving the Estimated Market Value of Property Owned by the City of Ely.
Langowski indicated that we have been working with the Town of Morse and St. Louis County on an annexation agreement and a property swap. The property swap involves the city trading city owned property to St. Louis County for St. Louis County owned parcels and the City transferring ownership of other city owned property to the Town of Morse. The critical path in this process has been the trade with St. Louis County. To move forward the council needs to approve the Resolution regarding the assessed market value of the property, then the county can approve this transfer, then it would go to the state for approval. Langowski indicated that he included the Memorandum of Understanding between the City of Ely and Town of Morse, item 5 subdivision 7 was amended by the county. Langowski indicated that he discussed this change with Clerk Wognum with the Town of Morse. The property we were receiving from the county was much less value than what we were giving to them, so the county found a parcel that would bring the value closer to even, which is the parcel across from 10th and Pattison Parcel Id: 030036000240, which we use as a snow dump area.
Langowski indicated that at a future meeting we should amend the Memorandum of Understanding with the City of Ely and the Town of Morse to include this parcel.
Roll Called: Council Member A.Forsman Yes, Kess Yes, Debeltz Yes, Omerza Yes, Callen Yes, Campbell – Yes, and Mayor Novak Yes. Motion Carried 6-0-1 with Debeltz Absent.

14. OPEN FORUM: None

15. ADJOURN
Mayor Novak adjourned the meeting at 6:36pm without objection.

Casey Velcheff
Deputy Clerk

Ely Echo 03/20/2021