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DRAFT MEETING MINUTES 

Council Chambers

Ely, Minnesota

Tuesday, April 15, 2008

6:30 P.M.  Regular Meeting

Ely City Council 

Regular meeting of the Ely City Council was called to order at 6:30 P.M. by Mayor Charles J. Novak.

PRESENT:  Council members Debeltz, Lindroos, Nikkola, Omerza, Sheddy, Zupec, Mayor Novak (7)

ABSENT:  None (0) 

• A quorum was determined.

Mayor Novak thanked the persons in tonight’s audience for attending tonight’s Council Meeting and also those who will be watching the broadcast of tonight’s meeting on Channel 11.

Moved by Zupec supported by Debeltz, that the minutes of the regular meeting of April 1^st be approved without reading.  Carried unanimously.  Minutes to stand as recorded. 

The following additions were added to tonight’s agenda:

1. Ely School Board/JFK Building – to be taken up under II.  Committee Reports, EEDA;
2. Quote City has received from GovOffice.com – to be added under Old Business, Item A.

Council members concurred with additions as listed above. 

Mayor Novak requested Council approval in calling for a Special Meeting of the Ely City Council to take place on Tuesday, April 29, 2008, at approximately 5:45 P.M. immediately following the 5:00 P.M. scheduled hearing of that evening, for the following purpose: Consideration of EUC recommended electric rate increase; possible Storefront Renovation Loan action.  Council members concurred with the calling of a Special Council Meeting as noted above.  City Operations Director Harold Langowski also requested the addition of Public Works Infrastructure Grants ( due April 30^th) also be added to the Special Meeting notice, and that he will be discussing these applications with the Council and EUC at the  Joint Study Session scheduled for 6:00 P.M. that same evening.  Council members approved request for addition for Council to consider at Special Meeting.  

The following consent agenda items were brought before the Council for approval:

1. Jodie Ensign – request to utilize Outdoor Rink summer/fall 2009 for Youth Soccer Program ( approve subject to participants signing required waivers/coordinate with City Operations Director);
2. George Burger, Zoning Administrator – request to attend Planning and Zoning Seminar in Little Falls, Minnesota on April 23^rd ( to include reimbursement for lodging and mileage);
3. IRR – Community Finance and Technical Resources Workshop – Wednesday, May 21^st, Mt. Iron ( Mayor and Deputy Clerk – or designee) invited and authorized to attend;
4. Kawishiwi Ranger District Open House – May 2^nd – 2:00 P.M. – 6:00 P.M. – Mayor/Council/City Employees invited to attend – INFORMATION;
5. Ely Garden Club – request for $500.00 ( flower appropriate for 2008);
6. Ely Track Club, Meg Heiman – request to use Trezona Trail and parking area on Miner’s Drive, Saturday, September 6^th – 7:00 A.M. – 1:00 P.M. for run/walk/children’s run ( approve to coordinate with Police Chief and City Operations Director);
7. Terry’s Operational Services – Operational Report for March 2008 – INFORMATION;
8. The Five Best Days of Summer, St. Louis County Fair – Bettie Valley, Fair Manager – request for donations ( Council members to donate on their own if they so choose);
9. Mn. Department of Natural Resources – Grant In Aid Workshop – April 23^rd – 6:00 P.M.  Tower DNR ( City Operations Director authorized to attend);
10. Troy Zakariansen, Director, Rock Ridge Camp and Outfitters, Ely – Proposed Bicycle Race/Route, August 23, 2008, 5:00 A.M. – 7:00 A.M. ( approve to coordinate with Police Chief);
11. Board of Review – Thursday, May 1^st, 5:00 P.M. – 6:00 P.M.  City Hall Council Chambers ( Council members to attend) – INFORMATION;
12. SEH, Denny Reagan – firm’s interest in City Engineer services – INFORMATION;
13. Mn. Department of Corrections – Inspection of Ely Municipal Jail – INFORMATION

Moved by Debeltz supported by Zupec, that above items be approved and ordered filed.

Mayor Novak recommended that on item #1, this matter be also referred to the City Parks and Recreation Board.  Council member Omerza discussed item #11 as to how many Council members will be attending, as she has a conflict with another meeting that evening.  Council members Debeltz, Lindroos, Nikkola, Sheddy, Zupec stated that they would be in attendance;  Mayor Novak may be out of town attending a Mayor’s Convention scheduled for May 2^nd.  Moved by Debeltz supported by Zupec, that amendment be added to original motion incorporating Mayor Novak’s recommendation on item #1.  Carried unanimously. 

Council member Sheddy reported on behalf of the City of Ely Buildings Facility Group Meeting of April 14^th:  group had received a recommendation from the Deputy Clerk as to usage of office space within the Ely City Hall, and approved adopting the recommendation, being as follows:  Police Department will be expanding into the old water and light billing office;  Fire Chief’s Office will be located at the former Accountant’s Office, basement floor of the Ely City Hall;  Confidential Accounting Clerk will be relocated to the top floor of Ely City Hall, Northwest corner ( current Council member’s Office);  Council member’s Office will be relocated to basement floor, Southeast corner ( former Administrator’s Office).  The Clerk-Treasurer when hired will then be able to work out of the Clerk-Treasurer’s Office and also, when privacy is needed, the office adjoining the Confidential Accounting Clerk’s Office.  Matter of information. 

Mayor Novak questioned whether or not an energy audit has been ordered up on city owned buildings, with Council member Sheddy reporting that the group is in the process of discussing this matter and it will occur shortly.  The next meeting of the Buildings Facility Group is Monday, May 12^th, Noon, at the Ely Community Center. 

Council member Lindroos reported on behalf of The Employee Relations Committee Meeting of April 10^th:

1. A draft shared human resource consultant agreement ( as negotiated by Deputy Clerk, City Attorney, John Fossum, Richard Rand per Council directive) was reviewed by committee with recommendation for additional paragraph being added addressing Council assignment through Clerk-Treasurer’s Office as to issues consultant will be assigned by City be incorporated in agreement by the City Attorney, to then be forwarded to full Council for approval.  Moved by Lindroos supported by Sheddy, that recommendation to include above stipulated revision to draft copy, be approved and that the Mayor and Deputy Clerk be authorized to execute City of Ely / Ely Bloomenson Community Hospital shared human resource consultant agreement.  Carried unanimously.
2. Other Than Essential Supervisory Unit – group is requesting that the Council approve this unit in the health care savings program offered other city employees, which would be through a memo of understanding to current contract which runs through December 31, 2009.  ER Committee is recommending that request be approved with City Attorney to draft up proper memo of understanding to contract, and that this memo then be placed on the May 6^th regular city council meeting agenda for proper signatures by Mayor and Deputy Clerk.  Moved by Lindroos supported by Nikkola, that recommendation be approved.  Carried unanimously.
3. Performance Evaluation Forms – recommend that City adopt the older version provided ER Committee Members for 2008 employee evaluations, and that department heads proceed in evaluating employees, to be completed by June 1^st.

Moved by Lindroos supported by Nikkola, that above recommendation be approved for the 2008 evaluations only, and that Human Resource Consultant Rich Rand be tasked with coming up with a performance evaluation form to be used for future City employee performance evaluations.  Carried unanimously.

4. Department Head Performance Evaluation Forms – ER Committee is recommending that a different form be used for city department heads,  other than that used for city employees in general, and that Human Resource Consultant Rich Rand be tasked with coming up with a specialized performance evaluation form for City Department Heads and Contractual Employees the City now holds contracts with, and that this matter be placed on a future Ely City Council Study Session for discussion.  Moved by Lindroos supported by Debeltz, that recommendation be approved.  Carried unanimously.  It was noted that the full Council will be conducting performance evaluations on all City Department Heads.
5. Proposed Job Description for Shared Office Assistant to the Police and Clerk-Treasurer Departments -  Deputy Clerk and Police Chief have developed a job description for position, recommending that the position be classified in the AFSCME Confidential Unit, to be advertised between 25-32 hours per week, with an hourly rate yet to be determined, and eligibility for shared benefit package.   ER Committee is recommending that the draft job description be sent to Paul Ness to incorporate in city’s standards job description format, with a copy then sent to AFSCME Staff Representative Ida Rukavina, and placed on the May 6^th council agenda for formal action.  Moved by Lindroos supported by Debeltz, that recommendation be approved.  Carried unanimously.

Council member Sheddy informed the Council that the Sanitation Committee will be meeting on Thursday, April 17^th, 10:00 A.M.  Klun Law Firm.  Matter of information. 

Council member Debeltz informed Council that he has a conflict in attending two Wednesday night meetings:  The Donald G. Gardner Humanities Trust Board will be meeting at 5:15 P.M. and the Ely Rehab/Storefront Renovation Committee will be meeting at 5:30 P.M.  Council members Nikkola and Novak will be in attendance at the Ely Rehab/Storefront Renovation Committee Meeting, requesting that Council member Debeltz attend the Gardner Trust Board Meeting first, and then come to the Ely Rehab/Storefront Renovation Committee Meeting afterwards. 

Council member Omerza questioned the City Budget Committee Members as to whether or not a current budget worksheet is available for EEDA;  Mayor Novak stated that information was contained in the full budget package Council members received.

Council member Debeltz questioned the proposed equipment the City will be purchasing through Wells Fargo newly approved credit line;  City Operations Director Harold Langowski reported that the public works and utilities are now putting together an equipment list as to equipment that is needed or will need to be replaced within the next 10-15 years, and will present to the City Budget Committee for their review.   

Council member Omerza informed Council members that she had attended LMC Legislative Days in St. Paul last week, and was asked to serve on two committees;

1. Human Resource and  2. Economy.  Moved by Debeltz supported by Omerza, that the Mayor and Council members be authorized to participate in serving on these posted committee openings, to attend all scheduled meetings and activities relating to same.  Carried unanimously.

Council member Omerza reported on behalf of the Telecommunications Advisory Board Committee Meeting of April 7^th;  Channel 11 broadcasting ( Ely TV) will have the capabilities once again to broadcast live on Friday, April 18^th.  Matter of information.

She also reported that the Board is recommending that the Deputy Clerk draft letters to city officials in Winton, Tower and Babbitt, to join in the franchise agreement with Charter Communications, gaining access to Ely TV, both in content submission, local access, contributing fees, and the overall ability to increase the total service area, and possible upgraded services.  Mayor Novak cautioned the TAB members to have the City Attorney research the city’s current franchise agreement with Charter to see if there are any stipulations listed addressing these issues.  He further stated that Babbitt and Winton have agreements in place with Charter, and would recommend that the City contact Tower and Babbitt to possibly form a joint powers for participation.

Council member Omerza stated that these communities now get Channel 11 but do not pay franchise fees;  if they are not interested in contributing the channel should then be shut off.  Ely TV, Mike Jankovec was present and stated that Ely TV has not pursued this matter with the other communities;  is this something Ely TV or the City of Ely should be doing.  Council member Sheddy commented that Winton should be contributing financially, with Mayor Novak noting that the Council should decide who will be spreading this issue with Babbitt/Tower/Winton.  Ely TV has plenty to fill a channel with announcements at this time, with current equipment allowing for four channels.  Moved by Zupec supported by Debeltz, that the City Attorney be directed to review current Charter Franchise Agreement, and proceed in advising Council members of his concerns and/or options the City may have available to them on this issue.  Carried unanimously. 

Moved by Omerza supported by Debeltz, that the Clerk’s Office make a formal request to Charter Communication to provide to the TAB members, annual reports for fiscal years of 2006 and 2007, as provided by current Contract with the City of Ely, referencing Exhibit B and C.  Carried unanimously. 

Mayor Novak reported that the Community Joint Powers Board had met, and the City of Ely’s Goals and Objectives were laid on the table.  The EADA met on April 14^th – group had went through set of questions (22) submitted by members as to how do we reinvigorate the EADA.  Matter of information. 

Mayor Novak reported that the HRA Board had met on April 8^th – there is an above 95% occupancy on all HUD units in the city, with the Northwoods Town Homes being fully occupied at this time.   

Mayor Novak reported that the next meeting on  Fiber to Premise will be held on April 23rd, and that Council member Sheddy and himself will be attending.  Matter of information. 

Mayor Novak also reported that Council members Lindroos, Omerza, Sheddy, Zupec and himself had attended a meeting at the Grand Ely Lodge today, sponsored by Frontier.  Discussion was held pertaining to current and future offering as to the cost and issues of fiber to the premise.  Proprietary information was shared, with the message from Frontier being that as long as they are able to ride on the highway, they have no problem,  

Council member Omerza reported that at the April 14^th Ely School Board Meeting, discussion was held regarding draft reimbursement agreement between the City of Ely and the Ely School Board.  Mayor Novak reported that in his discussion with Supt. of Schools Ed Anderson, the EEDA should be the property manager of the JFK Building, with the EEDA, Ely School District to make cost determinations, that all monies received by rental parties go into a dedicated cash account, to be set aside by the School District to be allowed to accumulate to cover future shortfalls of building.  The Mayor will again be meeting with Supt. Anderson next week; informing him that the City Council is not interested in purchasing the JFK Building at this time but could assist in the cash flow of building.  Council members discussed the need for the EEDA to be dealing with the School District;  to discuss this matter further at an upcoming Study Session;  the City should do a needs assessment on JFK Building first;  review report put together by SEH.

Council member Omerza expressed her concerns for the current tenants in the JFK Building, noting that time is of the essence.  Council members noted that the City has already committed to the Ely School Board, financial assistance in keeping the JFK Building open through the 09/2008 – 09/2009 school year, with Mayor noting that tenants should feel comfortable with this action; that the City will do everything it can in this matter, recommending that the Council request a Joint Special Meeting with the Ely School Board to discuss the JFK Building, at which time action from both bodies could be taken, being a Special Meeting of both groups.  Moved by Omerza supported by Debeltz, that the Deputy Clerk be directed to schedule a Special Council Meeting to be held jointly with the Ely School Board, to discuss the concluding of an agreement relative to the JFK Building.  Carried unanimously. 

City Operations Director Harold Langowski reported that the City has received Addendum No. 1 for the Apron Expansion and Crack Repair Project from TKDA, relative to the Ely Municipal Airport, 2008 Capital Improvement Program.  This addendum reduces the granular section of the apron and identifies the crack repair as a project Bid Alternate.  Addendum #1 is now being sent to Mn/DOT Aeronautics.  Matter of information. 

Operations Director also reported that the City Attorney has been working to set up a meeting with the former engineer, and contractor on the Airport Expansion Project, along with Council and Airport Commission Member John Lindroos and Mayor Novak, to try to get the project issues resolved and work towards a closeout.  Meeting is scheduled for April 22^nd.  Matter of information. 

City Operations Director informed Council members that he had been approached by the Ely Echo as to a special issue congratulating the U.S. Forest Service on their new facility, inquiring as to whether or not the City would be interested in purchasing an ad for this special issue.  Council member member Sheddy congratulated the U.S. Forest Service on behalf of the Council.  Matter of information. 

City Operations Director also reported that the City of Ely had advertised for RFP’s for City Architect, with six firms providing RFP’s as follows:

LHB, Duluth;  SJA, Duluth; Collaborative Design Group, Mpls.; DWGW Architects, Virginia; Architectural Resources, Hibbing; SEH, Virginia, requesting as to how the Council wishes to proceed on interviewing these firms.  Council members referred the matter to the Community Projects/City Streets and Infrastructure Committee to schedule interviews;  Operations Director will also be placing this on the next EUC Agenda for discussion. 

City Operations Director presented the following EUC Consent Agenda Items:

1. Authorize KBM, Inc. to advertise for bids for Feeder 6 construction.
2. Recommend awarding the bid for the Harvey/Conan Alley Utility Improvements/3^rd Avenue East Sewer Improvements Project to Louis Leustek and Sons Inc. for $238,332.85;
3. Recommend purchase of a replacement positioner for the water plant for $770.00 from Jasper Engineering;
4. Recommend payment of KBM Inc. Invoice #030800 for $1,208.83 for the Spectrum Project, to be submitted for reimbursement;
5. Approve payment of RLK Inc. Invoice #3 for $4,350.55 for the Harvey/Conan Alley Improvements Project;
6. Recommend payment of RLK Inc. Invoice #2 for the Spectrum Project for $1,861.61, to be submitted for reimbursement;
7. Recommend payment of RLK Inc. Invoice #3 for the Spectrum Project for $806.00, to be submitted for reimbursement.

Move by Zupec supported by Debeltz, that above items be approved and ordered filed.  Carried unanimously.  Council member Lindroos questioned whether above item #2 should be tabled;  City Operations Manager reported that the Council referred to EUC for consideration, and this was the EUC recommendation;    Mayor Novak questioned whether item #2 included the two add alternates of which City Operations Manager noted that they were included in bid award. 

Claim for payment was received from Ely Community Resources Inc. for second quarter allotment in the amount of $3,315.00.  Moved by Debeltz supported by Zupec, that claim be allowed and paid.  Carried unanimously. 

Claims for payment were received from RLK Kuusisto as follows:

1. Spectrum Health Assisted Living, Invoice #2 ( February 2008) - $1,861.61; Invoice #3 ( March 2008) - $806.00;  ( Council member Debeltz noted that these were already approved through the EUC Consent Agenda);
2. Ely Cemetery Boundary – Trembath Parcel description per Harold Langowski and City of Ely – professional surveying services ( February 2008) - $97.50;
3. Miners Dry Sprinkler Installation – Invoice #5 – (February 2008) - $260.00

Moved by Nikkola supported by Debeltz, that claims for payment items #2 – 3 be allowed and paid.  Carried unanimously. 

Claims for payment were received from Nancy Larson, Community Coaching Inc., for professional fees as per agreement;  preparation of FEMA/Homeland Security AFGP application – Safety and Operations;  Training and Equipment, in the amounts of $2,000,00 and $2,500.00.  Moved by Nikkola supported by Omerza, that claim be allowed and paid.  Carried unanimously.  *  City will file with IRR for partial reimbursement.  

Claim for payment was received from the Community Economic Development Joint Powers Board, for 2^nd quarter 2008 allocation in the amount of $12,862.65.  Moved by Omerza supported by Debeltz, that claim be allowed and paid.  Carried unanimously. 

Claims for payment were received by the Klun Law Office for the following:

1. Leustek Claim for Idle Equipment at Airport Project – Invoice #13602 - $1,526.35;
2. General Ely Matters – Invoice #13624 - $38.29;
3. New Pamida Store – Invoice #13625 - $82.42;

Moved by Debeltz supported by Omerza, that above claims be allowed and paid.  Carried unanimously. 

Claims for payment were received on the following:

6. US Bank – GO Refunding Bonds of 2003 - $431.25;
7. LMC Insurance Trust – Self Insured Accident Plan - $372.00;
8. St. Louis County – May Joint Public Works Maintenance Facility - $71,884.00;
9. Parks and Rec. Board:  Ace Hardware - $336.44 ( IRR);  $219.32 ( Parks/Rec. Budget); $61.22 ( Parks/Rec. Budget);  Voyageur Lumber - $344.80 ( IRR); Pohaki Lumber - $237.93 ( IRR)

Moved by Omerza supported by Debeltz, that above claims be allowed and paid.

Moved by Omerza supported by Debeltz, that the following amendment be added to original motion:  that above items F, G and I be allowed and paid.  Carried unanimously. 

City Operations Director Langowski reported that relative to above item #H, he has written a letter to the St. Louis County Auditor requesting invoicing on this billing and is awaiting the information requested.  This item will be placed on the May 6, 2008 regular council meeting agenda for action. 

Communication was received from Eric Mayranen, notifying the City of Ely that following the contract requirements of the runway extension project, Leustek Construction has harvested, processed and placed at roadside, approximately 50 cords of Tamarack, 5 cords of Spruce, 2 cords of Aspen, 2 cords of Balsam, 1 cord Jackpine.  Due to current market conditions being poor, he has talked with the local loggers and there is little interest in purchasing this wood.  He provided City with the name and address of a local wood buyer, which he feels would be the best chance in selling this wood, recommending that the City contact this individual.  Council member Lindroos reported that Airport Manager Jim Preblich will be taking care of this matter. 

Moved by Omerza supported by Debeltz, that the Council waive the readings in their entirety, of all ordinances and resolutions on tonight’s agenda.  Carried unanimously. 

Mayor Novak reported that the City of Ely has received a quote from Mike Chaloupka of GovOffice.com, of which the City of Ely has approved prior entering into a contract with for City Web Service, for a total contract price of $1,354.00. ( 12 months)  Moved by Nikkola supported by Nikkola, that the Mayor and Deputy Clerk be authorized to sign contract as provided.  Carried unanimously. 

Council member Omerza noted that Zoning Administrator George Burger has been doing a lot of prep work behind the scenes in getting ready to work on City Web Site, and she would like to thank him on behalf of the Council for his efforts. 

Council member Debeltz offered the following resolution:  2008 – 16 

Resolution Giving Preliminary Approval to a Project Under Minnesota Statutes, Sections 469.152 Through 469.165 and Referring The Proposal To The Minnesota Department of Employment and Economic Development For Approval. 

BE IT RESOLVED by the governing body ( the “City Council”) of the City of Ely, St. Louis County, Minnesota ( the “Issuer”), as follows: 

Section 1.  General Recitals

1. The purpose of Minnesota Statutes, Sections 469.152 through 469.165 as amended, relating to municipal industrial development ( the “Act”), as found and determined by the legislature, is to promote the welfare of the State of Minnesota ( the “State”) by the active promotion, attraction, encouragement and development of economically sound industry and commerce through governmental action to prevent, so far as possible, the emergency of blighted and marginal lands and areas of chronic unemployment.
2. Factors necessiting the active promotion and development of economically sound industry and commerce are the increasing concentration of population in the metropolitan areas and the rapidly rising increase in the amount and cost of governmental services required to meet the needs of the increased population and the need for development of land uses which will provide access to employment opportunities for such population.

Section 2.  Description of the Project.

1. The City of Winton, Minnesota (“Winton”) has previously issued its $6,200,000 Health Care Facilities Revenue Note, Series 2000A, dated December 4, 2000 ( the “2000 Note”) for the benefit of Ely-Bloomenson Community Hospital and Nursing Home Corporation ( the “Borrower”) located at 328 West Conan Street, Ely, MN  55731, a Minnesota nonprofit corporation and organization described in Section 501(c) (3) of the Internal Revenue Code of 1986, as amended (the “Code”).  The 2000 Note was issued to finance (i) construction and equipping of Borrower’s medical clinic leased by The Duluth Clinic, Ltd. (the “Clinic”); (ii) renovation and remodeling of 8,252 square feet of Borrower’s hospital (iii) construction of a 2,814 square foot dining/day room addition to Borrower’s nursing home; and (iv) acquisition of major diagnostic radiology equipment

     ( the “2000 Project”).

2. The Borrower has proposed issuance of revenue obligations by the Issuer, in one or more series, in an amount not to exceed $14,000,000 ( the “Obligations”) to finance (a) renovation of approximately 6,776 square feet of existing administrative space for the relocation and enhancement of the Physical Therapy/Wellness program; (b) construction of approximately 2,029 square feet of public circulation space; (c) remodeling and renovation of approximately 28,000 square feet of the existing facility for upgrades including the following areas:  Ambulance/Emergency garage, Emergency Department, Lab, Imaging and in-patient hospital areas; (d) remodeling of the Clinic, to increase services, create pre-rooming patient areas and provider office space; (3) miscellaneous remodeling projects in the Administrative and Nursing Home areas and other areas of the Corporation’s facilities; (f) acquisition of furniture, fixtures and equipment;  (the “Project”) (g) refinance the 2000 Note; (h) fund a debt service reserve, if required, and (i) pay costs associated with the issuance of the Obligations.
3. The Project and the 2000 Project ( the “Projects”) will be owned and operated by the Borrower.

Section 3.  Recital of Representations Made by the Borrower.

1. The Issuer has been advised by representatives of the Borrower that: (i) conventional financing to pay the capital cost of the Project and refinancing the 2000 Project is available only on a limited basis and at such high costs of borrowing that the economic feasibility of operating the Projects would be significantly reduced; (ii) on the basis of information submitted to the Borrower and their discussions with representatives of areas financial institutions and potential buyers of tax-exempt bonds, the Obligations could be issued and sold upon favorable rates and terms to finance the Project and refinance the 2000 Project; and (iii) the Project would not be undertaken in its present form but for the availability of financing under the Act.
2. The Borrower has agreed to pay any and all costs incurred by the Issuer in connection with the issuance of the Obligations, whether or not such issuance is carried to completion.
3. The Borrower has represented to the Issuer that no public official of the Issuer has either a direct or indirect financial interest in the Projects nor with any public official either directly or indirectly benefit financially from the Projects.

Section 4.  Public Hearing.

1. As required by the Act and Section 147 (f) of the Code, an initial resolution was adopted by the City Council on March 18, 2008, scheduling a public hearing on the issuance of the Obligations and the proposal to undertake and finance the Project and refinance the 2000 Project.
2. As required by the Act and Section 147 (f) of the Code a Notice of Public Hearing was published in the Ely Echo, the Issuer’s official newspaper, and a newspaper of general circulation, calling a public hearing on the proposed issuance of the obligations and the proposal to undertake and finance the Project and refinance the 2000 Project.
3. As required by the Act and Section 147 (f) Code, the Issuer has, on April 15, 2008, held a public hearing on the issuance of the Obligations and the proposal to undertake and finance the Project and refinance the 2000 Project, at which all those appearing who desired to speak were heard and written comments were accepted.

Section 5.  Findings.  It is hereby found, determined and declared as follows:

1. The welfare of the State and the Issuer requires the provision of necessary health care facilities so that adequate health care services are available to residents of the State and the Issuer at reasonable cost.
2. The Issuer desires to facilitate the selective development of the community and help to provide the range of services and employment opportunities required by the population.  The Projects will assist the Issuer in achieving those objectives; help to stabilize market valuation and debt; and enhance the image and reputation of the community.
3. On the basis of information made available to this City Council by the Borrower it appears, and this City Council hereby finds, that: (1) the Projects constitute properties, real and personal, used or useful in connection with a revenue producing enterprise within the meaning of Subdivision 2 of Section 469.153 of the Act; (2) the Projects urther the purposes stated in Section 469.152 of the Act; (3) the Projects would not be undertaken but for the availability of financing under the Act and the willingness of the Issuer to furnish such financing; and (4) the effect of the Projects, if undertaken, will be to: (i) encourage the development of economically sound industry and commerce, (ii) assist in the prevention of unemployment, (iv) provide the range of service and employment opportunities required by the population, (v) help prevent the movement of talented and educated persons out of the State and to areas within the State where their services may not be as effectively used, (vi) promote more intensive development and appropriate use of land within the Issuer, eventually to increase the tax base of the community; and (vii) provide adequate health care services to residents of the Issuer at a reasonable cost.
4. The Issuer acknowledges, finds, determines and declares that the provision of necessary health care facilities so that adequate health care services are available to residents of the State at a reasonable cost is a public purpose.

Section 6.  Approval.

1. The Projects and the issuance of the Obligations are hereby given preliminary approval by the Issuer.
2. In accordance with Subdivision 3 of Section 469.154 of the Act, the Mayor or the Deputy Clerk or their designee, is authorized and directed to submit the proposal for the Project to the Department of Employment and Economic Development of the State (“DEED”) requesting approval, and other officers, employees and agents of the Issuer are hereby authorized to provide DEED with such information as it may require.
3. The Borrower is hereby authorized to enter into such contracts, in their own names and not as agents of the Issuer, as may be necessary for the transactions described herein by any means available to them and in the manner they determine without advertisement for bids, but the Issuer will not be liable on such contracts.

Section 7.  Limited Obligation.  The Obligations, when and if issued for the Projects, shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property of the Issuer.  (There will, however, be a charge, lien or encumbrance on the Projects, which is not an asset of the Issuer).  The Obligations, when and if issued, shall recite in substance that the Obligations and the interest thereon, are payable soley from revenues received from the Projects and property pledged for payment thereof, and shall not constitute a debt of the Issuer. 

Motion for the adoption of the foregoing resolution was made by Council member Debeltz, seconded by Council member Nikkola, and declared carried on the following vote:

YES:   Council members Debeltz, Lindroos, Nikkola, Omerza, Sheddy, Mayor Novak (6)

NO:   Council member Zupec (1)

ABSENT:  None (0)

Adopted this 15^th day of April 2008. 

Council member Zupec qualified his no vote by stating that he does not have enough information on proposal at this time.  Council member Omerza noted that she will be an affected property owner living in that area;  Council member Debeltz would like to have the hospital report back to the Council as to what comes up from the meeting the hospital will be holding with all the neighbors in that area.  He recommended that everything be on the table for the neighbors information.  Mayor Novak also stated that the City wants to hear from the residents at upcoming hearings on this issue. 

Council member Debeltz offered the following resolution:  2008-17 

A Resolution Proposing Legislation To Establish A Local Sales And use Tax For The City Of Ely 

WHEREAS:  The City of Ely, Minnesota has identified infrastructure improvements necessary to provide economic development and job creation within the immediate region. 

NOW, THEREFORE BE IT RESOLVED:  That the City Council of Ely hereby adopts this resolution and requests the State Legislature to establish a local sales and use tax of 1% on transactions taxable within the City of Ely.  The proceeds of this tax would be used for the following exclusive purposes:

1. Improve existing water and sewer system infrastructure to provide increased capacity in support of West End Redevelopment by extending Pattison Street from Central Avenue to the Western Boundary;
2. East End Expansion and Development – further expansion of Ely Business Park and West End Housing Projects;
3. Extension of services into Town of Morse and to the City of Winton;
4. Land acquisition and site development pertinent to West End Development;
5. Establish an entry to the Boundary Waters to include the Chamber of Commerce, a Visitor Center, a Kiosk, Restrooms, an RV Dump Site and Trail Rest including the relocation of the Kawishiwi structures to be donated by the Forest Service onto the site;
6. Construction of a pool facility to support ISD #696, Vermilion Community College and the Ely Bloomenson Community Hospital, to provide competition swimming events for the school and therapy capability for the hospital;
7. Installation of improvements authorized by Mn. Statutes, Chapter 429;
8. Chapman Street redevelopment activities;
9. Community Center use transition to establish the Boundary Waters Historical Center and provide for ADA compliance. 

The tax would be in effect until the earlier of:  (1) collection of $50 million in sales and use tax revenue, or (2) payment in full of bonds issued for the above with a maximum of twenty (20) years and a maximum principal amount of $50 million. 

Said tax would exclude the sale of automobiles in the City of Ely. 

Motion for the adoption of the foregoing resolution was made by Council member Debeltz, seconded by Council member Nikkola, and declared carried on the following vote:

YES:  Council members Debeltz, Lindroos, Nikkola, Omerza, Sheddy, Zupec, Mayor Novak (7)

NO:   None (0)

ABSENT:  None (0)

Adopted this 15^th day of April 2008. 

Council members discussed the benefits to the City of Ely if this sales tax is approved.

Mayor Novak noted that 75% of the sales/use tax would come from visitors, which would give the City the stability for capital improvement projects;  the City had passed a similar resolution in 2007,  but now needs a more current resolution in 2008.  Mayor Novak had discussed this issue with Tom Bakk and David Dill, who will move this resolution forward for the community.  Council member Zupec suggested that the City provide the State with other creative ideas for revenue, that it was not fair that the State give some cities the opportunity to have a sales tax and not others.   

Mayor Novak recommended that since the Council had already briefly discussed the possibility of raising City Liquor License fees, he would like to propose the City raising the fees for liquor licenses, but only in the case whenever an ownership of an establishment changes hands.  This will have no change to the current liquor license holders.  Moved by Nikkola supported by Omerza, that this item be referred to the City Liquor Committee, requesting their recommendations for determining the new fees by surveying other Range Cities.  Carried unanimously. 

Deputy Clerk Wellvang had contacted the HRA to see if they would be interested in participating with the City of Ely in the bidding of propane for the upcoming heating season, a both entities may be able to realize a better price break if bidding together.  The HRA would be interested in bidding with the City of Ely.  Moved by Debeltz supported by Omerza, that the City of Ely go forward with calling for proposals on propane for the upcoming heating season in conjunction with the HRA.  Carried unanimously.   

Deputy Clerk and City Operations Director will work with HRA Executive Director Marty Hendrickson, in preparing notice for bid. 

The City of Ely had advertised for interested Ely Residents to serve as Administrative Hearing Judges for the City of Ely’s Civil Enforcement Program.  Three letters of application were received:  Defenbaugh Law Office, Nancy A. Roe, Larry Reedy.

Deputy Clerk noted that only Larry Reedy fit the residency requirement to apply for these positions. 

Mayor Novak requested that tonight’s meeting recess at 8:00 P.M. for a recording tape change. 

Regular City Council Meeting back in session at 8:10 P.M. 

Moved by Nikkola supported by Sheddy, that the City appoint Larry Reedy as an Administrative Hearing Judge for the City of Ely Civil Enforcement Program, and that the Deputy Clerk be directed to repost for ELY RESIDENTS, prior notice advertising for administrative hearing judges.  Carried unanimously. 

Council members Debeltz and Zupec were tasked by the Council at the last regular meeting, to review those nominations received by the City of Ely for 2008 Volunteers of the Year.  Council member Debeltz announced that Mary J. Johnson, 601 East Boundary Street, Ely and Justine Carlson, 904 East Chapman Street, Ely were selected.  Moved by Debeltz supported by Nikkola, that recommendation be approved, and that both individuals be invited to a future City Council Meeting to receive their plaques.

Carried unanimously. 

Council member Sheddy offered the following ordinance:  Proposed Ordinance NO. 217, Second Series   An Ordinance of the City of Ely, Minnesota, Adding To The City Code, Chapter 20, Section 20.1.18, Entitled Zoning Map Amendment 

The Council of the City of Ely Does Hereby Ordain: 

Section 1.  A new Section shall be added to Chapter 20 as Section 20.1.18, of the Ely City Code to read as follows: 

Section 20.1.16  Zoning Map Amendment.  The zoning classification of the parcels of land located in the City of Ely, County of St. Louis, State of Minnesota, which have the following legal description: 

Lots 7, 8 and 9, Block 9, Auditor’s Plat No. 38 to Ely

( Parcel Codes:  030-0021-00920 and 030-0020-01060) 

are hereby changed from the current zoned classification of Open Space to Residential 1 (R1). 

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 thirty (30) days after final adoption and publication. 

Motion for the adoption of the foregoing ordinance was made by Council member Sheddy, seconded by Council member Debeltz, and declared carried on the following vote:

YES:  Council members Debeltz, Lindroos, Nikkola, Omerza, Sheddy, Zupec, Mayor Novak (7)

NO:  None (0)

ABSENT:  None (0)

Proposed Ordinance #217, Second Series, adopted and given a first reading and publication, this 15^th day of April 2008. 

Moved by Omerza supported by Debeltz, that the meeting adjourn.  Carried unanimously.  Adjournment at 8:15 P.M. 
 

Patricia M. Wellvang

Deputy Clerk

City of Ely