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City of Mountain Iron, Minnesota



Meeting Minutes for January 21, 2009

MINUTES
MOUNTAIN IRON CITY COUNCIL
JANUARY 21, 2009

Mayor Skalko called the City Council meeting to order at 6:31 p.m. with the following members present: Joe Prebeg, Jr., Tony Zupancich, Alan Stanaway, Ed Roskoski, and Mayor Gary Skalko. Also present were: Craig J. Wainio, City Administrator; Jill M. Anderson, Municipal Services Secretary; Don Kleinschmidt, Director of Public Works; John Backman, Sergeant; and Rod Flannigan, City Engineer (entering at 6:35 p.m.).

It was moved by Skalko and seconded by Prebeg that the consent agenda be approved as follows: 

1. Add the following items to the agenda:

VI. F. Community Center Building Rental Waiver for Feb. 9-10, 2009
G. Quad Cities Cooperation
H. Resolution Number 02-09, Saint Louis County Project in the City

2. Approve the minutes of the December 15, 2008, regular meeting with the following correction:

Page 1, paragraph 5, change the vote of Councilor Roskosk from no to yes on the payment of the bills and payroll.

3. That the communications be accepted, placed on file, and those requiring further action by the City Council be acted upon during their proper sequence on the agenda.

4. To acknowledge the receipts for the period December 16-31, 2008, totaling $96,340.05, (a list is attached and made a part of these minutes).

5. To authorize the payments of the bills and payroll for the period December 16-31, 2008, totaling $380,663.29, (a list is attached and made a part of these minutes).

The motion carried unanimously on a roll call vote.

No one spoke during the public forum.

The Mayor updated the Council on the following:

– Mesabi Daily News. Said he was disappointed about “Onions” that were published in the Mesabi Daily News that were not true. He advised the public to call him if they have any questions regarding the City to get accurate information.
– “State of the City” address summary:
1. The City is in excellent financial condition.
a. Commended City Staff for being accountable with the expenses.
b. Expanded tax base with new residential and commercial development.
c. Dealing appropriately with local government aid reductions.
2. Capital Improvements for 2009.
a. City Hall/Community Center Painting. The project is currently being completed and the quotes have come in for approximately half of the budgeted expense.
b. Slate Street Storm Sewer Project. Pending receipt of federal funding for the project.
c. Downtown Vintage Streetscape Project. Pending receipt of federal funding for the project.
d. Fire Department Grass Rig Purchase. The City has been budgeting for this purchase for the past three years.
e. Old Highway 169 Street Project in Kinross. The City is planning on completing this project this summer.
f. The remaining projects will be determined depending on the amount of local government aid reductions.
3. 2008-2009 Projects that have been completed:
a. L & M Expansion. Opened in February of 2008, offering more products and shopping area.
b. Taconite Ridge Wind Energy Project. In June of 2008 the wind mills were operational.
c. Lake Country Power facility. Will be opening the Mountain Iron facility in February of 2009.
d. Holiday Inn Express. Will be opening in Mountain Iron in June of 2009.
e. Housing Development. The Unity Second Addition was completed and nine lots have been sold to date.
f. Northern Community Credit Union. Opened in January of 2009.
4. Miscellaneous Information:
a. Saint Louis County. County Road 7 is scheduled to be repaved in 2009.
b. Renewable Energy Park. The City has received $800,000 in grant funding for infrastructure for the Park.
c. Mountain Timber. Development of a wood pellet plant in 2009.
d. Fairview Clinic. Planned expansion in 2010.
e. Morgan Park Estates. This development has been put on hold.
f. P & H MinePro. Moving out of town in 2009.

It was moved by Zupancich and seconded by Stanaway to approve the variance request from Regal Properties, LLC from the setback requirement and the distance between signs requirement of the ordinance for the placement of a sign on parcels 175-0065-01590 and 175-0065-01600. The motion carried.

It was moved by Zupancich and seconded by Prebeg to approve the variance request from Regal Properties, LLC from the setback requirement along the east boundary of 16th Avenue for the property described as follows:

Lots 13 and 14, Block 8, and the South ½ of the adjacent vacated alley; and
Lots 9, 10, 11, and 12, Block 5, and the South ½ of the vacated adjacent Third Street and the North ½ of the vacated adjacent alley; and
Lots 9, 10, 11, 12, and the North ½ of the vacated adjacent alley, Block 4; and
Lots 13, 16, 17, and the East ½ of Lot 14 and the North ½ of the vacated adjacent Third Street, and the South ½ of the vacated adjacent alley, Block 4; and
Lots 18, except highway right-of-way, including part of vacated Third Street adjacent, and the South ½ of the vacated adjacent alley, Block 4; and
West ½ of Lot 14, Lot 15, and the South ½ of the adjacent vacated alley and the north ½ of the adjacent vacated Third Street, Block 4; and
Lots 13, 14, and 15, Block 5, and the south ½ of the adjacent vacated alley and the north ½ of the adjacent vacated Fourth Street; and 
Lots 11 and 12, Block 8, and the South ½ of the adjacent vacated Fourth Street and the north ½ of the adjacent vacated alley; and 
Lots 6, 7, 8, Block 4, and the North ½ of the vacated adjacent alley; and
All of the vacated alley adjacent to Lots 11, 12, 13, and 14, Block 8.
West Virginia Addition to Mountain Iron

The motion carried.

It was moved by Zupancich and seconded by Stanaway to designate the City Administrator to oversee, monitor, accept responsibility and evaluate the non-audit services for the City of Mountain Iron for information to be included in the City’s audit. The motion carried.

The City Administrator updated the Council on the following:

– Economic Stimulus. Advised the Council that this was getting a lot of attention and more information was being released on funding that will probably be coming through the State.
– Range Association of Municipalities and Schools. Informed the Council of the Annual Meeting scheduled for February 19, 2009 in Hibbing.
– 2008 Financial Information. Provided information to the Council regarding budget performance by department for the City of Mountain Iron.
– Bond Refinance. Advised the Council that George Eilertson, Northland Securities, was present at the meeting to discuss a possible refinance of the 2002 Water Revenue Bonds. 

It was moved by Roskoski and seconded by Skalko to adopt Resolution Number 03-09, approving the issuance of General Obligation Water Revenue Refunding Bonds, Series 2009A, (a copy is attached and made a part of these minutes). The motion carried.

It was moved by Stanaway and seconded by Prebeg to authorize City Staff to prepare specifications and call for bids for a replacement garbage truck. The motion carried with Roskoski voting no.

It was moved by Roskoski to direct the City Attorney to answer, in writing to the City Council, the following questions regarding minimum housing standards:

1. How complete does a new home have to be before someone can move in and live there?

2. How complete does a remodel project have to be for a family to continue living in the house?
3. To live legally in Mountain Iron, what types of utilities are residents required to have to occupy a home?

The motion died for lack of a second.

It was moved by Zupancich and seconded by Prebeg to adopt Change Order Number One for the 2006 Street Improvement Project to increase the contract amount by $13,852.16. The motion carried with Roskoski voting no.

It was moved by Prebeg and seconded by Stanaway to approve Payment Request Number Five-Final to Ulland Brothers Incorporated in the amount of $16,700.57, for the 2006 Street Improvement Project. The motion carried on the following roll call vote: Zupancich, yes; Stanaway, yes; Roskoski, no; Prebeg, yes; and Skalko, yes.

It was moved by Prebeg and seconded by Zupancich to authorize Payment Request Number Five for the 16th Avenue West Reconstruction Project to Hammerlund Construction Company in the amount of $18,235.48. (Note: The Project Administration is through the City of Virginia.) The motion carried on the following roll call vote: Stanaway, yes; Roskoski, abstain; Prebeg, yes; Zupancich, yes; and Skalko, yes.

It was moved by Prebeg and seconded by Skalko to accept the recommendation from the Utility Advisory Board and install two street lights on Unity Drive at an estimated cost of $7,500. The motion carried unanimously on a roll call vote.

It was moved by Prebeg and seconded by Zupancich to accept the recommendation from the Utility Advisory Board and adopt Policy Number 2009-01, Solid Waste Service Fee Policy, (a copy is attached and made a part of these minutes). The motion carried with Roskoski voting no.

It was moved by Prebeg and seconded by Skalko to approve the issuance of a notice of intent to initiate negotiations concerning the AFSCME Local 453 contract. The motion carried.

It was moved by Skalko and seconded by Stanaway to appoint the Personnel Committee as the Negotiation Committee for the negotiations concerning the AFSCME Local 453 contract. The motion carried with Roskoski voting no.

It was moved by Zupancich and seconded by Skalko to authorize the Personnel Committee to post and advertise for a Lineman Position at Job Class 22. The motion carried with Roskoski voting no.

It was moved by Skalko and seconded by Roskoski to direct City Staff to submit the following projects: 1) Locomotive Canopy; and 2) Replacement Sidewalk at Locomotive Park, to the IRR Mineland Reclamation Program for grant funding. The motion carried.

It was moved by Zupancich and seconded by Stanaway to authorize Payment Request Number One in the amount of $9,215.00 to H. G. Harvey Constructors Incorporated for the Mountain Manor Apartment Remodel Project. The motion carried unanimously on a roll call vote.

It was moved by Skalko and seconded by Prebeg to waive the rental fees for the use of the Mountain Iron Community Center for a youth benefit for Cornerstone Family Church on February 9th and 10th, 2009. The motion carried.

It was moved by Zupancich and seconded by Roskoski to contribute $200 towards the Mountain Iron-Buhl All-Night Chemical Free Graduation Party with the funds being expended from the Charitable Gambling Fund. The motion carried unanimously on a roll call vote.

It was moved by Skalko and seconded by Stanaway to adopt Resolution Number 02-09, approving a Saint Louis County project within the municipal corporate limits, (a copy is attached and made a part of these minutes). The motion carried.

At 8:23 p.m., it was moved by Zupancich and seconded by Skalko to recess the regular meeting and enter into a closed meeting to discuss strategies for labor negotiations. The motion carried.

The closed meeting was called to order at 8:32 p.m. with the following members present: Joe Prebeg, Jr., Tony Zupancich, Alan Stanaway, Ed Roskoski, and Mayor Gary Skalko. Also present were: Craig J. Wainio, City Administrator; and Don Kleinschmidt, Director of Public Works.

The Council considered strategies for labor negotiations with AFSCME Local #453.

At 8:49 p.m., it was moved by Zupancich and seconded by Prebeg that the closed session be adjourned and the regular meeting be reconvened. The motion carried.

It was moved by Zupancich and seconded by Prebeg to direct City Staff to hire a labor consultant to assist with the negotiations with AFSCME Local #453. The motion carried with Stanaway voting no.

At 8:52 p.m., it was moved by Skalko and seconded by Prebeg that the meeting be adjourned. The motion carried.

Submitted by:
Jill M. Anderson, CMC/MMCA
Municipal Services Secretary
www.mtniron.com

COMMUNICATIONS

1. Iron Range Housing, an invitation to several workshops in the area in January of 2009.

2. Mountain Iron-Buhl High School Class of 2009, a request for a donation towards the Chemical Free Graduation Party.

3. Range Association of Municipalities and Schools, a letter notifying the City of the annual meeting set for February 19, 2009, in Hibbing.

4. Northland Securities, forward a proposal for a possible refinance of the General Obligation Water Revenue Bonds, Series 2002.

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