Ely City Council meeting minutes November 21-30, 2017

Council Minutes - November 21, 2017
Regular Meeting Ely City Council – City Hall, Council Chambers
1. CALL TO ORDER- Mayor Novak called the Regular City Council Meeting to order at 5:30pm.
2. PRESENT: Council members A.Forsman, Kess, Debeltz, Omerza, Callen, D.Forsman and Mayor Novak
ABSENT: None
3. APPROVAL OF MINUTES: Debeltz/D.Forsman moved to approve the minutes from the November 7, 2017 Regular Meeting. Motion Carried Unanimously.
4. ADDITIONS OR OMISSIONS TO AGENDA:
A. Addition 6. B. Updated time of Special Council Meeting
B. Addition 8.A.i. Budget Committee
C. Addition 8.A. j. Event Coordinator Bureau
D. Addition 9.E.ii. Updated Purchase Agreement
E. Addition 9.E.v. Addendum to Purchase Agreement between City of Ely and Pastika Building, LLC
F. Addition 13. H. Updated Exhibit A for Resolution 2017-034
G. Addition 13. K. Premier Pyrotechnics Contract
H. Addition 13.L. Northern Grounds Sunday On-Sale Liquor License pending proper paperwork and fees.
I. Addition 13. M. 113 W Harvey – Sewer Inspection
J. Addition 13. N. Approve the Transfer of the Tobacco License for Holiday Stationstores, Inc to Holiday Stationstores, LLC on or about December 15, 2017.
K. Addition 13. O Resolution 2017-035 Resolution Supporting H.R. 3905 Minnesota Economic Rights (MINER) in the Superior National Forest Act
Items A-K added without objection.
5. MAYOR’S REPORT
Mayor Novak reminded residents to be mindful of when they park downtown to try not to block the off the shoveled areas that give access to businesses.
6. CONSENT AGENDA:
A. Motion to waive readings in entirety of all ordinances and resolutions on tonight’s agenda.
B. Special Council Meeting on November 30, 2017 at 9:45am to meet with Commissioner Tom Rukavina and the Mayor of Duluth Emily Larson.
Debeltz/D.Forsman moved to approve the consent agenda items A and B. Motion Carried Unanimously.
7. REQUESTS TO APPEAR: None
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8. COMMITTEE REPORTS:
A. Standing/Special
Projects Committee
D.Forsman/Debeltz moved to approve the recommendation from the Projects Committee to submit the CDBG application for 7th Ave and the water tower supply line project. Motion Carried Unanimously.
D.Forsman/Debeltz moved to approve the recommendation from the Projects Committee to apply to the IRRRB for downtown beautification. Motion Carried Unanimously.
Housing & Redevelopment Authority
Mayor Novak reiterated that the HRA is not free housing; it is subsidized/reduced housing, based on the income of the residents.
Donald G. Gardner Humanities Trust
Callen stated that the trust reallocated the trust’s portfolio and switched to Vanguard as the primary and only financial management bank for the Trust.
Kess thanked Tim Riley for volunteering to help the trust board as a financial advisor during this process.
Budget Committee
A.Forsman/Debeltz moved to approve the recommendation from the Budget Committee to pay the invoice from Ely Flower and Seed for watering and maintenance of the downtown flowers for 2017 totaling $1,260. Motion Carried Unanimously.
A.Forsman/Debeltz moved to approve the recommendation from the Budget Committee to designate a $10,000 donation from the Korpi Trust to the Cemetery Kiosk. Motion Carried Unanimously.
A.Forsman/Debeltz moved to approve the recommendation from the Budget Committee to designate $2,500 to the park and recreation budget for 2018 for the downtown beautification project being completed in conjunction with Incredible Ely for the maintenance and watering of the hanging baskets and planters. Motion Carried Unanimously.
A.Forsman/Debeltz moved to approve the recommendation from the Budget Committee to purchase a 2009 Freightliner with 587 miles from the DNR for $5000 with the completion of the conversion in 2020 and to continue the long range plan for firefighting apparatus.
Kess is opposed since he does feel that the council is ready to take on the refurbishing of the tanker, one estimate was around $200,000 for the refurbishment. Kess is also concerned that there is not a need for the truck.
A.Forsman stated that this purchase is on the City’s equipment replacement plan. This piece of equipment was around $166,000 when new and to get it for $5000 with only 587 miles on the truck this is a wise decision.
Motion Carries 6-1 with Kess opposed.
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Events Coordinator Bureau
Mayor Novak reported that Stone Soup Events is not going be the event coordinator anymore nor do the Canoe Fest, but they would like to continue to do the Ely Marathon. The Event Coordinator Bureau will also start to meet monthly.
9. DEPARTMENTAL REPORTS:
A. Clerk-Treasurer
i. EUC CONSENT AGENDA ITEMS: The following items of business were recommended for approval at the regular EUC meeting of Wednesday, November 15, 2017
1. Approved the purchase of a pole and reel trailer for $19,500.00 plus tax and freight from Rice Trailer Company.
2. Approved payment of the September EUC Bills List for $294,588.27
3. Approved payment of the Lighthouse Power Invoice #15194 for $1,549.02 for annual generator service at the WWTP and Invoice #15193 for $1,149.25 for annual generator service at the Burntside pump house.
4. Approved the lighting rebate for Crapola for $738.73.
Debeltz/D.Forsman moved to approve the EUC Consent Agenda from November 15, 2017, Items 1-4. Motion Carried Unanimously.
ii. 2017 Ely Residential Building Demolition Bids
Debeltz/D.Forsman moved to award the 2017 Ely Residential Building Demolition Bids to the low bidder, Low Impact Excavators, for $51,300.00. Motion Carried 6-0-1 with Kess abstaining since he owns one of the properties.
B. Fire Chief
Chief Erchull stated that he will be coming to the council in December to hire one more firefighter. The fire department currently has 34 firefighters.
C. Library Director
Library Director Heinrich gave an update of the upcoming events at the library which can be located on the Library Website.
D. Police Chief
E. City Attorney
i. Burntside Ridge Trail Association Bylaw Change
Kess/Debeltz moved to vote in favor of the proposed Resolution 2017-1 regarding the Burntside Ridge Trail Association Consolidated Bylaws. Motion Carried Unanimously.
ii. Offer for Community Center (Closed Session)
Debeltz/D.Forsman moved to go to closed session under MN Statute 13D regarding the City of Ely receiving an offer from Princeton Commercial NE Holdings, LLC relative to the Ely Community Center we will be closing the meeting to review the offer and propose a counter offer. Motion Carried Unanimously.
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iii. Conflict of Interest Policy
Omerza/Debeltz moved to accept the revised Conflict of Interest Policy that is in the packet which will be for all City Employees including the council. Motion Carried Unanimously.
iv. Agreement for Entry Between the City of Ely and Pastika Building, LLC
Omerza/Debeltz moved to accept the agreement for entry between the City of Ely and Pastika Building, LLC.
Attorney Klun stated the closing date for this building is December 8th and this agreement will give them access to the building to do repairs and winterize the building.
Motion Carried Unanimously.
v. Addendum to Purchase Agreement between City of Ely and Pastika Building, LLC
Omerza/Debeltz moved to approve the addendum to the purchase agreement between the City of Ely and Pastika Building, LLC.
Attorney Klun stated that the main part of the addendum is that the sanitary sewer line is nonfunctional and the intent is to have the buyer fix the sanitary sewer line within one year of purchase or a $10,000 assessment will be placed against the property.
Motion Carried Unanimously.
F. City Engineer
10. COMMUNICATIONS:
A. Ely-Winton Historical Society free guided tour of Museum on Monday, December 4 from 2-4pm.
B. Correspondence from Finlandia Foundation Northland Chapter
11. CLAIMS FOR PAYMENT:
A. City and EUC claims for November 21, 2017 - $305,877.98
B. Partial Payment Estimate #3 for Chandler Area Improvements/Pioneer Road Improvements Project for $47,765.53 to Quam Construction Company Inc.
C. Northern Bedrock Historic Preservation Corps- Invoice for $9,600.00
Debeltz/D.Forsman moved to accept the claims for payment items A-C. Motion Carried Unanimously.
12. OLD BUSINESS:
13. NEW BUSINESS:
A. Omerza/D.Forsman moved to approve Change Order #2 for the Chandler Area Improvements/Pioneer Road Improvements Project. Motion Carried Unanimously.
B. Debeltz/Omerza moved to approve the Certificate of Substantial Completion for the Ely Chandler Area Improvements/Pioneer Road Improvements Project. Motion Carried Unanimously.
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C. Debeltz/A.Forsman moved not to waive the monetary limits on municipal tort liability established by Minnesota Statutes, Section 466.04 on the League of Minnesota Cities Liability Coverage Waiver Form. Motion Carried Unanimously.
D. Omerza/Debeltz moved to nominate Paul Kess for the RAMs Board of Directors Nomination for the City of Ely. Motion Carried Unanimously.
E. Debeltz/Omerza moved to approve Signatures for the FAA for the Runway Crack Sealing, Apron Resurfacing, and Taxiway Predesign. Motion Carried Unanimously.
F. Omerza/Debeltz moved to approve Resolution 2017-032 Resolution Authorizing the Adoption of the National Incident Management System (NIMS) for the City of Ely. Roll Called: A.Forsman-Yes, Kess- Yes, Debeltz-Yes, Omerza-Yes, Callen-Yes, D.Forsman-Yes, Mayor Novak- Yes Motion Carried Unanimously.
G. Debeltz/D.Forsman moved to approve Resolution 2017-033 Authorizing the City of Ely to Make Application to and Accept Funds From the Downtown Business Corridor Grant Programs. Roll Called: A.Forsman-Yes, Kess- Yes, Debeltz-Yes, Omerza-Yes, Callen-Yes, D.Forsman-Yes, Mayor Novak- Yes Motion Carried Unanimously.
H. Debeltz/Omerza moved to approve Resolution 2017-034 Resolution Making Levy and Assessment Against Taxable Properties for Delinquent Water, Sewer, and Electric Accounts and Demolition Costs. Roll Called: A.Forsman-Yes, Kess- Yes, Debeltz-Yes, Omerza-Yes, Callen-Yes, D.Forsman-Yes, Mayor Novak- Yes Motion Carried Unanimously.
I. Debeltz/D.Forsman moved to approve the transfer of the On Sale Liquor License and Sunday Liquor License from Rockwood Bar and Grill of Ely Inc to ASIN-MITIG, LLC pending receiving proper paperwork and background checks. Motion Carried Unanimously.
J. Form a 3 person committee for the Negotiating Committee for the sale of the Community Center Building- Will be discussed during the Closed Meeting
K. Debeltz/Omerza moved to approve Premier Pyrotechnics to shoot the 2018 4th of July Fireworks for $15,000 and to sign the contract with Premier Pyrotechnics. Motion Carried Unanimously.
L. Debeltz/D.Forsman moved to approve Northern Grounds Sunday On-Sale Liquor License pending proper paperwork and fees. Motion Carried Unanimously.
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M. 113 W Harvey St – Sewer Inspection
Langowski stated that the plumbing contractor did a Sewer Inspection on this property and found that this line has possibly three separate lines tied into the same sanitary sewer line. At this time the line is not in compliance with the current ordinance on shared sewer lines. The property owner wrote a letter to the council giving some background on the estate and issues they have had with the property.
Kess asked whether this sewer line is functional as it is now.
Langowski stated that it appears that the line is functional although it ties into a cross plumbing fitting so the flow would have to take a sharp turn and there are some roots in the line.
No action was taken.
N. Debeltz/D.Forsman moved to approve the Transfer of the Tobacco License for Holiday Stationstores, Inc to Holiday Stationstores, LLC on or about December 15, 2017. Motion Carried Unanimously.
O. Omerza/A.Forsman moved to approve Resolution 2017-035 Resolution Supporting H.R. 3905 Minnesota Economic Rights (MINER) in the Superior National Forest Act. Roll Called: A.Forsman-Yes, Kess- Yes, Debeltz-Yes, Omerza-Yes, Callen-Yes, D.Forsman-Yes, Mayor Novak- Yes Motion Carried Unanimously.
14. OPEN FORUM
Omerza stated that on November 30, 2017 at 6:30pm there will be a presentation on J-1 Visa Summer Workers for local business owners presented by the City of Ely, Ely Chamber of Commerce and Incredible Ely.
Mayor Novak stated that the Truth in Taxation Public Hearing is at 6pm on November 28, 2017, this is a public hearing about the City of Ely’s 2018 Budget and Levy.
Mayor Novak recessed the meeting at 6:32pm.
Mayor Novak closed the meeting at 6:35pm.
Mayor Novak opened the meeting at 6:53pm.
A.Forsman/Omerza moved to form a negotiating committee regarding the Community Center with Paul Kess, Heidi Omerza, and HPC Member Celia Domich being on the Negotiating Committee and Al Forsman and Jerome Debeltz will be alternates on the Committee. Motion Carried Unanimously.
15. ADJOURN
Mayor Novak adjourned the meeting without objection at 6:55pm.
Casey Velcheff
Deputy Clerk

Study Session Meeting – Council Chambers, Ely City Hall
November 28, 2017
CALL TO ORDER
Mayor Novak called the November 28, 2017 Study Session to order at 5:30pm.
PRESENT: Council Members A.Forsman, Kess, Debeltz, Omerza, Callen, D.Forsman, and Mayor Novak
ABSENT: None
ADDITIONS OR OMISSIONS:
A. Addition III. B. George Burger – Update on City Emergency Management
Addition A added without objection.
REQUEST TO APPEAR
A. Bradley Peterson, Senior Attorney/Lobbyist Flaherty & Hood, P.A.
Bradley Peterson from the Coalition of Greater Minnesota Cities (CGMC) gave an presentation on the CGMC and the Legislative goals for the CGMC.
Mayor Novak recessed the Study Session at 5:58pm for the Truth in Taxation Public Hearing.
Mayor Novak reconvened the Study Session at 6:11pm.
Mayor Novak asked Bradley Peterson about the Voluntary Assessment for the CGMC Environmental Action Fund that the CGMC would like cities to partake in.
Peterson stated that the CGMC has a goal to raise $150,000 through the voluntary assessment. The assessment money goes toward and increasingly challenging environmental regulatory landscape for the Greater Minnesota Cities. The Environmental Action Fund continues to support vital legislative, legal and regulatory efforts by the CGMC to advocate for the environmental interests of Greater Minnesota Cities. Peterson stated that an example of when this money was used was when he went and testified about the Wild Rice Standards. Peterson stated that the League of Minnesota Cities is not doing this kind of work.
Kess stated that the Ely Utilities Commission was concerned that the CGMC was only working on the phosphorus issues.
Peterson stated that is only one of the issues that they are working on. Putting pressure on the MPCA is one of their main focuses.
Langowski suggested rolling the Voluntary Assessment for the Environmental Action Fund into the annual CGMC dues rather than having a voluntary assessment, and then all the cities are paying
Kess asked how much the dues would go up if the Voluntary assessment was put in the dues.
Peterson stated approximately 10%.
Peterson thanked the council for their time.
Study Session Minutes November 28, 2017
B. George Burger – Update on City Emergency Management
Burger thanked the council for the City Emergency Management position and for passing the resolution on the National Incident Management System.
Burger stated he has been communicating with other Emergency Management individuals and they are guiding him along. Burger commented that Ely needs to update our Emergency Management System; the goal is to make it more uniformly between the top agencies down to the local agencies.
Burger stated that he has been studying and getting certification through the Federal Emergency Management Agency (FEMA) to become an Emergency Management Director.
The City of Ely’s current plan is outdated, cluttered, and has retirees names in it as the contact individuals. Burger commented that the current plan is quiet large and the new plan will be smaller and in two parts, a plan and then a resource manual for additional information. Burger stated that Mt. Iron updated their Emergency Management Plan in 2014 so he has been referencing that to update the City of Ely’s plan.
Burger stated that he would like a yearly review with the Council, St Louis County, and a Peer Review of the City of Ely’s Emergency Management Plan once it is completed and every four years have the plan reviewed by the State.
Burger would also like to bring back quarterly meetings with the Ely Area Emergency Preparedness Group.
Clerk Langowski stated that the wind damage last July was declared a state disaster area and he commends Burger for taking on the Emergency Management Position.
A.Forsman said that he has always felt comfortable in this community since we always come together to help each other out, but this will help our community out even more. At the Hospital, Boundary Waters Care Center and the Clinic they have been focusing on a campus wide Emergency Management System. A.Forsman also commended Burger for taking this position on.
OLD BUSINESS: None
NEW BUSINESS: None
ADJOURN
Mayor Novak adjourned the meeting at 6:40pm without objection.
Casey Velcheff
Deputy Clerk

Truth in Taxation Public Hearing
Ely City Council - Council Chambers
November 28, 2017
CALL TO ORDER
Mayor Novak called the Truth in Taxation Public Hearing to order at 6:00pm.
PRESENT: Council Members A.Forsman, Kess, Debeltz, Omerza, Callen, D.Forsman and Mayor Novak
ABSENT: None
Mayor Novak state that the budget committee has met several times and the City is going to maintain the 2% levy that was proposed.
Clerk Langowski gave a slide presentation of the proposed 2018 Budget and proposed changes from 2017. Major changes and points of interest include:
 Total 2018 City Tax proposed - $1,698,679
 This is a City wide increase of $33,307 or 2% over 2017
 Taxable Market Value for 2018 Increased $5,198,001 compared to 2017
 Fiscal Disparities contribution to the City of Ely Increased by $93,659.61 compared to 2017.
 Changes in the 2018 Budget from 2017
o General Fund – Decrease in property taxes of $34,500 due to increases in other general fund revenues. Local Government Aid is budgeted to increase by $85,300
o EEDA – Special EEDA calculated 2018 Estimated Market Value times .01813 –
$165,754,000 x .01813% = $30,051.20
o Capital Projects Fund - $2,333,200 increase in Capital Project Expenditures due mostly to the airport projects including Apron Resurfacing, Parking Lot and Entrance Road Resurfacing. Capital Project budgeted total revenues increased $2,449,400due mostly to federal grants for the airport projects.
REVENUES by type
EXPENDITURES by function
Grants and Aids
40.5 %
Capital Outlay
51.9%
LGA
24.8%
General Government
7.8%
Property Taxes
19.2%
Public Safety
12.8%
Taconite Aid
3.4%
Culture & Recreation
4.3%
Airport Fuel Sales
2.0%
Airport
2.8%
Rents
3.4%
Economic Development
3.6%
Streets & Infrastructure
1.6%
Streets & Infrastructure
13.1%
Other
4.8%
Debt Service
2.4%
Special EEDA Levy
0.3%
Other
1.2%
Mayor Novak adjourned the meeting at 6:10pm without objection.
Casey Velcheff
Deputy Clerk
Special Council Meeting Minutes –Mayors Conference Room, Ely City Hall, November 30, 2017
PRESENT: Council Members A.Forsman, Omerza, Callen, Debeltz, D.Forsman, and Mayor Novak, Duluth Mayor Emily Larson, Commissioner Tom Rukavina, Phil Jents
Also Present: Warren Nikkola, Angela Campbell, Keith Vandervort, and Harold Langowski
Mayor Larson stated that she has been touring the County with St. Louis County Commissioners Rukavina, Nelson and Jugovich. She stated that Duluth is strong if St. Louis County is strong and vice versa.
Mayor Novak stated that he is concerned with the misunderstanding on the Duluth Council of the dependence they have on the iron range industry. We need to work together.
Commissioner Rukavina stated that Mayor Larson has lobbied against anti mining issues in Duluth.
A.Forsman stated that Duluth and Ely have a similar identity, mining, timber, manufacturing, and tourism.
Omerza said that she has spent a lot of time in Duluth, roads and transportation is a common issue. The biggest concern is the pull out of the CGMC; Duluth is one of the biggest recipients of LGA. Omerza challenged Duluth to rejoin the CGMC.
Ely does not have the draw of Duluth but we are working on improving our downtown Ely by working with Incredible Ely. We are using Duluth as a model for many things we are doing.
Mayor Larson state that $88,000 is too much for them to pay for CGMC dues. They would need to prioritize that over staffing. The League of Minnesota Cities dues are $6,000 and the national league is low as well.
Novak stated that history had shown that the CGMC has been our strongest lobbying force. Individual community lobbyists do not have the same effect.
Mayor Larson said that she does lobbying on her own for Duluth issues. She is open to considering joining the CGMC with the CGMC also having to come to the table.
Callen stated that Ely and Duluth rely on many of the same things. Northeastern Minnesota needs to stick together on the three aspects of the economy. Any disruption to one sector of the economy affects everyone, same as in Ely and Duluth.
D.Forsman stated that Duluth is the bigger sibling to Ely. Arcelor Mittal has around 300 employees with employees coming from Duluth. We need to work towards a level playing field from the Iron Range and Duluth.
D.Forsman commended Duluth on the many great events including the Cruze for Cancer and the drag race event.
D.Forsman and A.Forsman discussed the new Ely event, the Jake Forsman Car Show and Burnout competition. They have set up a scholarship for students going into a trade program. Trade programs are struggling to get students, and there are many opportunities in the trade professions. The event brought many people to Ely on a slow time of year and it will continue.
Debeltz is concerned that a Duluth councilor spoke against mining at a public hearing. Ely is struggling due to only having tourism. We need to have living wage jobs and people need to work together to get well-paying jobs. The Iron Range and jobs in Ely will greatly support Duluth as well. The school has declined enrollment. We need people to work together.
Nikkola stated that tourism is considered a silent sport in Ely. There is a decline in people pulling permits to enter the BWCAW. The system for permits is changing to first come first serve. Many local motor users cannot get day use permits, due to others abusing the system to keep them out. Currently 22,000 of 115,000 users of the BWCAW are motor uses.
Commissioner Rukavina stated that BWCAW permits are being abused.
Angela Campbell thanked Mayor Larson for her visit. Campbell stated that she is on numerous committees and works with Joanne Coombe with the Historical Society. The Ely Heritage Preservation Committee is doing historic walking tours with 44 buildings in Ely’s downtown. We look to Duluth for leadership in many ways.
Mayor Larson commented that Ely is ahead of Duluth in this project.
Commissioner Rukavina stated that he is working on a scholarship program to go to one of the four 2-year institutions in St. Louis County. We will need the mayor’s support on the Iron Range.
Mayor Novak stated that currently schools are not offering the same shop classes as in the past to spark interest in the trades.
A.Forsman stated in the Jake Forsman Scholarship there is a requirement of a reference from an employer. This requires students to have a part-time job to learn responsibility.
Mayor Larson thanked everyone for their honesty and does not feel Duluth is an older sibling but wants to be a partner and this is why she came today.
Harold R Langowski
Clerk/Treasurer
Ely Echo 12/9/2017