Ely Council Minutes - May, 2018

Council Minutes - May 15, 2018
Regular Meeting Ely City Council
– City Hall, Council Chambers

CALL TO ORDER: Mayor Novak called the Regular Council Meeting to order at 5:30 pm.

PRESENT: Council Members Kess, Debeltz, Omerza, Callen, D.Forsman and Mayor Novak
ABSENT: Council Member A.Forsman

APPROVAL OF MINUTES
Debeltz/D.Forsman moved to approve the minutes from the May 1, 2018 Regular Council Meeting. Motion Carried 6-0-1 with A.Forsman Absent.

ADDITIONS OR OMISSIONS TO AGENDA
Addition 6.C Approve Council and Staff to attend the CGMC Summer Conference on July 25-27 at the Verizon Center in Mankato
Addition 8.A. Budget Committee
Addition 9.D.i. Approve Evan Wognum a Student at Bemidji State University to do ride alongs with the Ely Police Department.
Addition 9.E.v. Rural Living Environment Development Agreement/Title Commitment
Addition 13.E. Contract Change Order #1 for Rural Living Environment Utility Extensions
Addition 13.F. Resolution 2018-017 Resolution Approving Advertising for Bids for the 2018 Pavement Rehabilitation Project FAA AIP NO: 3-27-0027-17-17 State Project No: A6920-47.
Additions A-F Added without objection.

MAYOR’S REPORT
Mayor Novak stated that calendar parking is done for this season.
This Thursday, May 17th at 5pm is the City of Ely’s Local Board of Equalization meeting if anyone would like to discuss their property tax assessment values.
Mayor Novak presented Ethan Hasz with a Key to the City for successfully completing all the requirements for the designation of an Eagle Scout.

CONSENT AGENDA
Motion to waive readings in entirety of all ordinances and resolutions on tonight’s agenda.
Approve the Ely Jaycees Temporary Liquor Licenses for the CrapolaFest on June 30, 2018 on 1st Avenue East, the Blueberry Arts Festival on July 27, 28, and 29, 2018 at Whiteside Park, the Harvest Moon Festival on September 7, 8, and 9, 2018 at Whiteside Park, and the Ely Marathon on September 22, 2018 at Whiteside Park pending receipt of proper paperwork and fee and to waive the requirement of an on-site police officer at these events.
Approve Council and Staff to attend the CGMC Summer Conference on July 25-27 at the Verizon Center in Mankato.
Debeltz/D.Forsman moved to approve the Consent Agenda Items A-C. Motion Carried 6-0-1 with A.Forsman Absent.

REQUESTS TO APPEAR
Overview of the current work being done in the community by the Ely Behavioral Health Network. Presenters Jenny Swanson, Heidi Favet, and Riana Hegman
Heidi Favet discussed the Community Care Team’s Initiatives. The Ely Behavioral Health Network works to achieve efficiencies and expand access to, coordinate, and improve the quality of behavioral health care. The Ely Community Care Hub, an interagency system for screening, referral, interventions, and follow-up for behavioral health issues with care facilitators in three community settings. The Community Care team provides collaborative care and targeted care coordination, it strengthens community resources, and promotes community health and wellness.
Jenny Swanson discussed the long term goals of the Community Care Team in Ely. The first goal is to enable the community to embrace mental health as an integral part of health and wellness. The second goal is to develop cross-agency system for routine screening, referral, interventions, and follow-up for behavioral health. The third goal is to build capacity in the community to address behavioral health needs. The fourth and final goal is to develop and expand an actively engaged network to plan collaborative behavioral health services.
Riana Hegman is the education coordinator for the Ely Behavioral Health Network. May is Mental Health Awareness Month and Ely is participating in a “Make it OK” Campaign. Hegman stated that 1 in 4 people will have some kind of mental illness in their lifetime, and many don’t get the help they need.

COMMITTEE REPORTS
Standing/Special
Ely Airport Commission
Recommendation from the Airport Commission to accept the 2018 Pavement Rehabilitation Project and request the City Council to advertise for bids.
A resolution for this project was added to the agenda under new business.

Kess/D.Forsman moved to approve the recommendation from the Airport Commission to accept TKDA Professional Services Agreement. Motion Carried 6-0-1 with A.Forsman Absent.

Budget Committee
Kess/Callen moved to approve the recommendation from the Budget Committee to approve the request for $3000 for the Condition Assessment at the Pioneer Mine and make the needed adjustments in the 2018 capital project budget for the work. Motion Carried 6-0-1 with A.Forsman Absent.

Kess/Omerza moved to approve the recommendation from the Budget Committee to authorize up to $17,400 for the design work for the mountain bike trails at Hidden Valley and make needed adjustments in the 2018 capital project budget for the work and to request funding assistance on this recreation property from the Town of Morse.
Langowski stated that community members have donated $9000 to the Bike Trails.
Motion Carried 6-0-1 with A.Forsman Absent.

Kess/Debeltz moved to approve the recommendation from the Budget Committee to approve the $28,385.75 expenditure for the utility work for the future development of the old public works garage site and Rural Living Environments project and make needed adjustments in the 2018 capital project budget for the work. Motion Carried 6-0-1 with A.Forsman Absent.

Kess/Omerza moved to approve the recommendation from the Budget Committee to award the Semers Park Picnic Pavilion to TL Construction and work to reduce the project cost through value engineering. Motion Carried 6-0-1 with A.Forsman Absent.

Recommendation from the Budget Committee to approve the Federal Awards Administration Policies and Procedures that was provided by the City of Ely’s Auditors.
Omitted from the agenda- item was approved at a previous council meeting.

Recommendation from the Budget Committee to approve the state bid from Skubic Brothers for a new International tandem axle dump truck for the price of $164,979.17 and approve the purchase.
Omitted from the agenda- item was approved at a previous council meeting.

vii. Kess/Debeltz moved to approve the recommendation from the Budget Committee to approve the purchase of four used radios from Itasca County for $1600 for the Fire Department. Motion Carried 6-0-1 with A.Forsman Absent.

Other Committee Reports

DEPARTMENTAL REPORTS:
Clerk-Treasurer
EUC CONSENT AGENDA ITEMS: The following items of business were recommended for approval at the regular EUC meeting of Wednesday, May 9, 2018.
Approved moving forward with PSN Bill Pay.
Authorized water main leak audit from Water Conservation Services, Inc. for $3,040.00.
Approved moving forward with Eaton AMI electric metering for $485,907.48.
Approved purchase of 49 poles from Bell Lumber and Pole Co. for $13,203.00.
Approved purchase of four 25 kv transformers from T&R Electric for $2,780.00.
Approved purchase of electric materials from IRBY for $2,647.50, WESCO for $190.00, Border States for $1,399.22 and DSG for $950.00.
Approved payment of the March EUC Bills List for $425,661.35.
Debeltz/D.Forsman moved to approve the EUC Consent Agenda Items 1-7. Motion Carried 6-0-1 with A.Forsman Absent.

Fire Chief

Library Director
Library Director Heinrich gave an update of the upcoming events at the library which can be located on the Library Website.

Police Chief
Debeltz/Omerza moved to approve Evan Wognum a 2nd year Criminal Justice Major Student at Bemidji State University to do ride alongs with the Ely Police Department. Motion Carried 6-0-1 with A.Forsman Absent.

Chief Lahtonen stated that 2-hour parking started today May 15, 2018.

City Attorney
Debeltz/Omerza moved to approve the Mortgage Satisfaction for Starkman Landscape Specialties Inc., DBA Ely Flower and Seed. Motion Carried 6-0-1 with A.Forsman Absent.

Kess/D.Forsman moved to approve the 1st Reading Ordinance 324, 2nd Series An Ordinance of the City of Ely, Minnesota, Adding to the Ely City Code, Chapter 10 Section 10.48, Entitled Regulation of City Trees and Shrubs. Roll Called: A.Forsman – Absent, Kess –Yes, Debeltz – Yes, Omerza – Yes, Callen – Yes, D.Forsman – Yes and Mayor Novak – Yes. Motion Carried 6-0-1 with A.Forsman Absent.

Schedule Public Hearing for Ordinance 324 – A public hearing is not needed since this is not a zoning issue.

Rural Living Environment Development Agreement/Title Commitment
Attorney Klun stated that we are still waiting for the proper title and legal description of the land. She will have the deed and ordinance at the next meeting for this property.

City Engineer

COMMUNICATIONS:
Correspondence from Burntside Lake Association
Correspondence from Midco on Rates.

CLAIMS FOR PAYMENT:
Debeltz/D.Forsman moved to approve the City and EUC claims for May 15, 2018 for $199,885.20. Motion Carried 6-0-1 with A.Forsman Absent.

OLD BUSINESS:
Debeltz/D.Forsman moved to approve the appointment of Jeannie Zaverl to the Cemetery Committee with the term expiring on 1/31/2021. Motion Carried 6-0-1 with A.Forsman Absent.

Mission/Vision Statement
Debeltz/Callen moved to discuss the Mission and Vision Statement for the City of Ely on the June Study Session. Motion Carried 6-0-1 with A.Forsman Absent.

NEW BUSINESS:
Debeltz/D.Forsman moved to approve the Ground Lease Agreement between the City of Ely and Ely Golf Club Corporation. Motion Carried 6-0-1 with A.Forsman Absent.

Omerza/Debeltz moved to approve Grant Award for $32,328.00 for the 2018 Residential Demolitions through IRRRB. Motion Carried 5-0-1-1 with A.Forsman Absent and Kess abstaining since one of the demolitions is his property.

Debeltz/Callen move to approve Resolution 2018-016 Resolution Authorization Application for Rotary Club of Ely to Apply for Raffle Permit. Roll Called: A.Forsman – Absent, Kess –Yes, Debeltz – Yes, Omerza – Yes, Callen – Yes, D.Forsman – Yes and Mayor Novak – Yes. Motion Carried 6-0-1 with A.Forsman Absent.

Casper Construction Inc was the low bidder on the 17th Avenue East / 7th Avenue East / and the Water Tower Supply Line Project. JPJ Engineering recommends the project be awarded to Casper Construction Inc. and offered a contract for the City of Ely, 17th Avenue East / 7th Avenue East / and the Water Tower Supply Line Project No. 15-177, for the Base Bid – Parts A, B, and C, Add Alternate #1, Alternate #2 (Material Alternative for Part A) and Add Alternate #4 for a total award of $2,110,050.65 and to approve the Notice of Award for the 17th Avenue East / 7th Avenue East / and the Water Tower Supply Line Project to Casper Construction Inc. (Also recommended from the Budget Committee to award the work to Casper Construction Inc)
Debeltz/D.Forsman moved to approve the Notice of Award for the 17th Avenue East / 7th Avenue East / and the Water Tower Supply Line Project to Casper Construction Inc for $2,110,050.65. Motion Carried 6-0-1 with A.Forsman Absent.

Debeltz/D.Forsman moved to approve the Contract Change Order #1 for Rural Living Environment Utility Extensions which the contract will be decreased by $2,808.00. Motion Carried 6-0-1 with A.Forsman Absent.

Omerza/Debeltz moved to approve Resolution 2018-017 Resolution Approving Advertising for Bids for the 2018 Pavement Rehabilitation Project FAA AIP NO: 3-27-0027-17-17 State Project No: A6920-47. Roll Called: A.Forsman – Absent, Kess –Yes, Debeltz – Yes, Omerza – Yes, Callen – Yes, D.Forsman – Yes and Mayor Novak – Yes. Motion Carried 6-0-1 with A.Forsman Absent.

OPEN FORUM
Mayor Novak reminded everyone that the Clean Up Days are this Friday and Saturday from 8-3 or until the bins are full.

ADJOURN
Mayor Novak adjourned the meeting at 6:24pm without objection.

Casey Velcheff
Deputy Clerk

Ely City Council Board of Appeal & Equalization Meeting May 17, 2018

The Ely City Council Board of Appeal & Equalization meeting was called to order by Mayor Novak at 5:00 p.m. on May 17, 2018 at the Ely City Hall Council Chambers

PRESENT: Council Members A.Forsman, Kess, Debeltz, Callen, and D.Forsman and Mayor Novak
ABSENT: Council Member Omerza
Also present were: Ben Thomas, Andrew Olson, David Hillstrom and Dave Sipila of the St. Louis County Assessor’s office.

The meeting was scheduled as required by Minnesota State Law to review the proposed assessed values of properties within the City of Ely boundaries as established by the St. Louis County Assessor’s Office.

There were 51 residential sales that took place in the City of Ely between October 1, 2016 and September 30, 2017. Following the reassessment of the City of Ely for assessment year 2018, taxes payable in 2019 the median ratio for the City of Ely was 94.9%. This assessment falls within the level of 90% to 105% that is required by Minnesota State Law.

Debeltz/A.Forsman moved to approve the following changes:

Katauskas Leonard ETUX PID 030-0021-00350 requested the building evaluation be decreased. Olson suggested lowering the ERA from 7 to 6 which would decrease the building assessment by $11,900.

Louis F Leustek & Sons Inc PID 030-0230-00065 requested the building evaluation be decreased since the building is planned to be demoed this summer. Olson suggested lowering the building assessment by $24,400 because of the condition of the house following interior inspection and the house is in tear down condition.

Ely Portage LLC PID 030-0010-01210 requested the building evaluation be decreased since the building is gutted inside and they found a floor joist that is in disrepair on the 2nd floor. Olson suggested lowering the building assessment by $50,200 due to the condition of the interior as well as the interior being partially gutted which revealed some structural issues.

Barbara Berglund PID 030-0160-00010 requested a decrease in land value due to an extreme bluff on the shore line. Olson suggested a $33,000 reduction to the land assessment due to the extreme bluff on the shoreline.

Motion Carried 6-0-1 with Omerza absent.

Roger Laine PID 030-0010-03750 asked why his assessed value went up.
Olson explained that the county revalued the City last summer which is when they physically inspect each property every 5 years.
Olson also explained that Laine had two properties that were homesteaded in previous years, but owners can only have one property homesteaded, so now one property is homesteaded and the other is not.
No valuation change was made

Mayor Novak adjourned the meeting at 6:00 p.m. without objection.

Casey Velcheff
Deputy Clerk

Study Session Meeting - May 29, 2018 5:30pm
Council Chambers, Ely City Hall

CALL TO ORDER
Mayor Novak called the 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: None

REQUEST TO APPEAR: None

OLD BUSINESS: None

NEW BUSINESS
Transient Merchant/Peddlers Permits/Food Trucks

Clerk Langowski stated that the Clerk’s Office has been receiving more calls requesting Transient Merchant and Food Truck Permits.

All transient merchants including Food Trucks unless excluded are required to have a Transient Merchant Permit from the City of Ely. Permit cost is $25/day, and the processing time is 14 days and requires a background check. A lot of vendors do not know they need a permit and will come up to City Hall and expect to get one right away to be able to sell the same day.

State Statute allows transient merchants to sell for 21 days our City Code currently allows for 14 days.

In the past the City has allowed Food Trucks and Transient Merchants to set up on Commercial Lots for no fee and without a background check.

Per State Statute, Farmers selling products cultivated from their own land (fruits, nuts, vegetables, meats, etc) should be excluded from requiring a Transient Merchant Permit. Langowski stated that we do not think the people selling the fruits and vegetables mid to late summer have grown the product themselves, they probably purchased the product from a farmer and then brought it up here to sell. In the past we have looked at them as exempt, thinking that it was a farmer’s product, but looking into Statute these products were not grown on their own land.

Looking into the City of Ely’s Ordinances more City Code Sec. 9.33 does not allow any person to park a vehicle on any street for the purpose of advertising or selling merchandise thereon or therein. City Code Sec 9.35 also states that it is a misdemeanor to park a motor vehicle on the property of another, or upon an area developed as an off-street parking facility, without the consent of the owner, lessee or person in charge of any such property or facility. So this means that as of right now transient merchants are not allowed on any city street.

One suggestion is to designate and rent one location at each Semer’s Park and Whiteside Park as a designated spot that would be available for Transient Merchant and Food Truck Activity.

During City sanctioned events (4th of July, Blueberry Arts Festival, Harvest Moon, Marathon, street dances, car shows, etc) which will utilize City property or will obstruct City Streets, the event organizer may allow Transient Merchants including food trucks within the location authorized for the event.

Currently the fee is $25 per day, but there has been some discussion on raising the fee to $50 per day to cover the costs of issuing the permit.

Transient Merchant is defined in City Code as a person who temporarily sets up business out of a vehicle, trailer, tent, empty lot, or storefront for the purpose of selling products or merchandise and who does not intend to remain in any one location for more than fourteen (14) consecutive days. Note: Fourteen (14) consecutive days is the maximum period a transient merchant is allowed to park in any one location within the City of Ely.

According to State Statute transient merchants should operate no more than 21 days annually at any one place unless operated at the site of a permanent business owned by the same individual or company and the sale apparatus (food stand/trailer) is readily movable, without dissembling, for transport to another location. Current City ordinance states a limit of 14 days in any one location.

Kess asked about the Farmers Market and if those individuals would have to get a permit.
Langowski stated that is an organized activity, the organizers have rented that corner of the park as part of their event, so it would be considered a City Sanctioned event.

Chief Lahtonen asked if the 14 or 21 days would be consecutive or annual.
Attorney Klun stated that it would be annual and the City would monitor it via issuing permits to the specific company/person.

Kess asked about Blueberry and Harvest Moon Festivals and how to regulate those events.
Langowski stated that several years ago the City Passed a Resolution for Transient Merchants during the Blueberry and Harvest Moon Festivals would have to pay $300 for the weekend to set up in town. Currently we have at least one vendor that sets up on a residential lot and according to the City Code that is not allowed so they would have to find a commercial lot to set up on. Transient Merchants can only set up on commercial lots not residential property.

A.Forsman asked if a Food Truck is catering an event at Semers if would they need to get a permit.
Langowski stated that as long as they are only serving for that event they would not need a license.

Omerza asked when a vendor would rent out a space at either park how would we regulate the electrical hook up.
Langowski stated that we have discussed possibly charging a minimum fee for electrical usage.

A.Forsman asked about the Marathon or the Car Show or events like that how we would go about selling T-Shirts and such for events.
Mayor Novak stated those events would fall under the City Sanctioned event and would not need a permit.

Chief Lahtonen asked about the rental spots at Whiteside Park or Semers if they would be first come first serve and one person at a time at these spots.
Langowski stated it would only be one person at a time at these spots.

Callen asked if a health inspector would be required.
Langowski stated that would be regulated by the state and we can ask for their health license during the application process.

Omerza asked where the spots would be designated at Whiteside and Semers Park.
Langowski stated at Semers it would be by the pavilion since that is the only spot with power. At Whiteside we were thinking about two locations, but only one would be used at a time. One location would be by Sheridan Street and 7th Avenue; the other would be closer to the Pavilion on 7th Avenue.

Mayor Novak stated that food trucks can compete with other restaurants in town and that’s why we need to regulate the amount of food trucks we have in town.

Langowski stated that if a vendor set up on a commercial lot we would require them to show proof that they received permission from the commercial lot owner and they will be required to get a permit.

Mayor Novak stated that he thinks the discussion is going down the right road, with a potential $50 fee and having limitations on 14 days or 21 days.

Chief Lahtonen asked if a current commercial lot owner sets up a meat wagon on his own property if they would need a permit.
Langowski stated that vendor would not need a permit since he is set up on his own commercial lot. If that same vendor wanted to set up in Whiteside Park or a different commercial lot they would need a permit.

Langowski stated the current Transient Merchant/Peddlers Permit is $25. Moving forward the fee should at least cover the cost to provide the permit which will entail a background check, and staff time, currently the $25 would not cover that.

Kess asked about fundraising events at the school, or other fundraising event.
Langowski stated that we discussed this and as long as it is a fundraising event it would be exempt.

Mayor Novak directed Attorney Klun to start drafting an ordinance on this matter.

Langowski stated that the current ordinance does not allow for a Food Truck or Transient Merchant at Semers or Whiteside Park. Currently if you are a vendor on a commercial lot you will have to get a Transient Merchant Permit.

Mayor Novak adjourned the meeting at 6:06pm.
Casey Velcheff
Deputy Clerk

Special Council Meeting May 29, 2018 Ely City Council - Council Chambers, Ely City Hall

CALL TO ORDER
Mayor Novak called the Special Council meeting to order at 5:15pm in the Ely City Hall Council Chambers.

PRESENT: Council members A.Forsman, Kess, Debeltz, Omerza, Callen, D.Forsman and Mayor Novak
ABSENT: None

ADDITIONS OR OMISSIONS: None

OLD BUSINESS: None

NEW BUSINESS
Omerza/Debeltz moved to approve the 1st Reading of Ordinance 325 2nd Series - An Ordinance of the City of Ely, Minnesota, Amending Chapter 20, Section 20.2 Sales of Land City Code of the City of Ely. Roll Called: A.Forsman – yes, Kess – yes, Debeltz-yes, Omerza – yes, Callen – yes, D.Forsman - yes and Mayor Novak - yes. Motion Carried Unanimously.

Debeltz/D.Forsman moved to approve the Ground Lease Agreement between the City of Ely and Negley Properties, LLC. Motion Carried Unanimously.

ADJOURN
Mayor Novak adjourned the meeting at 5:17pm without objection.

Casey Velcheff
Deputy Clerk

Emergency Council Meeting - May 30, 2018
Council Chambers, Ely City Hall

CALL TO ORDER
Mayor Novak called the Emergency Council Meeting to order at 6:00pm

PRESENT: Council Member A.Forsman, Kess, Omerza, Callen, D.Forsman and Mayor Novak
ABSENT: Council Member Debeltz

ADDITIONS OR OMISSIONS: None
OLD BUSINESS: None

NEW BUSINESS
Discuss the Gas Leak at the Holiday Gas Station
Mayor Novak reported that on Monday, May 28, 2018 around 5am a gas leak was reported at the Holiday Gas Station and the Ely Fire Department was dispatched to the scene. At first the spill was reported as approximately 150 gallons of gasoline, but by Wednesday the spill estimate increased to 4800 gallons which permeated in the ground and also flowed into the city’s storm and sanitary sewer system. The gasoline was detected on Miner’s Lake and was retrieved by OSI in absorbent booms.

The MPCA, OSI, Braun Intertec, State Fire Marshall and others are working together to come to a solution to how to clean up this spill. Holiday is getting a drill rig to bore holes to see where the gas spread.

MPCA has set up three major priorities, to ventilate the sanitary sewer, recover fuel at the site of release, and to monitor the storm sewer for vapor and product.

MPCA Staff will be installing sewer system ventilation equipment in the areas where vapors are coming from. They will also be in the neighborhoods checking in with residents to see if they have any smell of gas in their basements.

Currently the Fire Chief is working with the State Fire Marshal on Public Safety. Long term will be environmental concerns and how to clean up the site.

Holiday had been requested to close their facility.

Mayor Novak stated that at this moment there is no reason to panic the situation is under control and we are going to make visits to the affected neighborhoods. If anyone smells vapors they can call 911 to make the Fire department aware.

At this time there is no explosion concern and Braun Intertec is monitoring the vapors in the storm and sanitary sewer system.

Mayor Novak stated he will keep the public updated.

ADJOURN
Mayor Novak adjourned the meeting at 6:17pm
Casey Velcheff
Deputy Clerk Ely Echo 6/9/2018