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City of Mountain Iron, Minnesota



Meeting Minutes for September 02, 1998

JOINT COUNCIL MEETING OF THE CITIES OF 

MOUNTAIN IRON, VIRGINIA, GILBERT, & EVELETH

SEPTEMBER 2, 1998

The meeting was called to order at 6:00 p.m. by Eveleth Mayor Lenich at the new Quad Cities Recreation Facility in Eveleth.

The following Mountain Iron City Council members were present: Mitchell Brunfelt, Carolyn Olsen, Stephen Skogman, Joe Matanich, and Curt Piri. Also present from the City of Mountain Iron were: Craig J. Wainio, City Administrator; and Larry Nanti, Recreation Director.

The following Virginia City Council members were present: Carolyn Gentilini, Bunny Isaacson, Louis Russo, and Larry Cuffe. Absent members included: Charles Baribeau, Robert Henderson, and Patricia Thornton. Also present from the City of Virginia were: Ronald Lackner, Clerk/Finance Officer; Thomas Butorac, City Attorney; and Roy Olson.

The following Gilbert City Council members were present: Edward Schneider and Mary Jo Primozich. Absent members included: Nick Antonovich, Todd Devich, and Robert Perpich.

The following Eveleth City Council members were present: Michael Lenich, Denny Bone, Thomas Kallevig, Phillip Landborg, and William Matos. Also present from the City of Eveleth were: Ray Eck, Clerk-Treasurer.

Eveleth Mayor Lenich opened the meeting and had all four City Councils introduce themselves. He then turned the meeting over to Dennis Jorgensen, President, Quad Cities Recreational Board.

Dennis Jorgensen reviewed the construction and finances for the Quad City Recreation Facility and stated that the $300,000 bank line of credit for capital has not been drawn on. Currently, the only unfinished item is the parking lot. The Virginia Engineering Department is working on parking lot specifications. The Miners Bank has approved an interest rate of 4.7% on the credit line. He also discussed that the curling season will be November 1st through March 31st. Curlers have agreed to cover all expenses during that period. Dennis Jorgensen also discussed the problem of managing the facility and how to hire a manager.

Mountain Iron Mayor Brunfelt asked about funding and what the projections for revenues and expenditures were. Dennis Jorgensen stated there are projections at this time, but do not include outside management. Virginia Councilor Russo discussed that a full time manager would allow for total accountability on the facility. The manager could be paid a base rate plus commission.

Eveleth Councilor Bone discussed that the facility should be treated as an enterprise fund.

Virginia City Attorney Butorac mentioned that, as a first choice, a manager should be advertised for through a request for proposals.

Eveleth Councilor Landborg stated that curlers should be given preference during the curling season.

The proposed dues level for curlers will be $100 per year. Facilities estimated utilities are $3,000 per month. Currently, Virginia has 225 curling club members, Eveleth has 130 and Gilbert has 20. Annual projections are based on 350 members with revenue at $71,300 and expenses at $52,700.

The problems that need to be addressed are promotion and management.

Moved by Virginia Councilor Russo and supported by Gilbert Mayor Schneider to go out for proposals for a manager or management firm to manage the facility and to work with a budget not to exceed $60,000 in additional monies annual. The motion carried.

Quad Cities Councils have to approve the use of $60,000 of the line of credit for operation, rather than capital.

A suggestion was made to have Virginia Clerk/Finance Officer Lackner and Eveleth Clerk-Treasurer Eck get information on request for proposals, including snow removal.

At 7:05 p.m., it was moved by Virginia Councilor Russo and supported by Eveleth Councilor Bone that the meeting be adjourned. The motion carried.

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