Ely’s Point of Sale ordinance refined

ELY – The City Council and city staff continue to refine the Point of Sale Ordinance, following a public hearing and suggestions to make the new rule easier to understand and enforce.

A second reading on the new rule was held this week.

The provisions of the ordinance apply to all real estate connected to the city’s sanitary sewer and located within the city. According to Clerk-Treasurer Harold Langowski, the intent of the ordinance is to identify and eliminate inflow and infiltration of the sanitary sewer system resulting from cracked and leaking pipes, and foundation drain, roof drain and sump pump connections.

“We have had a first reading as well as a public hearing on this issue,” Langowski said. “We had a valid discussion on the ordinance, brought it back to the utilities commission, and made a few changes,” he said.

“In a nutshell, at the point of a (real estate transaction) the seller gets an inspection by a plumber or sewer professional, and makes provisions to get any issues corrected,” he said. “It is not the intent of the city to charge anything to have that done. The property owner will contract with the vendor of their choice to have this done. It will consist of a written report and a video report.”

Langowski suggested scheduling another public hearing following the second reading this week with ordinance revisions. “I will send an invitation to each realtor and sewer and plumbing professionals in the area so they are aware of what we are looking to do.”

He noted that the city’s Point of Sale ordinance is designed to mirror what has been done in St. Louis County for several years.

He said city and utilities staff wrestled with compliance provisions of the ordinance. The following section was added: “Any deficiencies discovered during the inspection shall be disclosed at the point of sale and shall be corrected within six months of the sale. The owner will provide proof of disclosure of the deficiencies prior to the sale. The owner will also provide proof that funds were placed in an escrow account to cover the required repairs.”

There are several exceptions where certification of sewer inspection is not required:

• A property where the Certificate of Occupancy has been issued within three years prior to the sale;

• A property sold or transferred by a court ruling including will, probate actions, divorce and estate settlements;

• A property that is without buildings or contains no dwelling or other buildings with plumbing fixtures;

• A property that is sold to a foreclosing mortgagee that holds a mortgage on the dwelling;

• The transfer does not require the filing of a Certificate of Real Estate Value.

Langowski noted that the only permits required will be for actual plumbing work that may be needed to make the real estate transaction valid. “The owner works with an individual plumber for certification, and if there are repairs, I would imagine a permit will be needed to make those repairs.”

A second public hearing will be scheduled next month to allow additional comments and revisions.

Other business

In other business, the council took the following action:

• Approved a tentative agreement on a three-year labor contract with AFSCME Local 1490 that provides wage increases of 2.75 percent in the first two years and 2.5 percent in the third year;

• Approved a proclamation commemorating School Choice Week;

• Approved the mayor, council and staff to attend the Coalition of Greater Minnesota Cities Legislative Action Day on Feb. 1, 2017;

• Accepted a donation of $547 from Custom Theaters for fixing the Rec Center audio system;

• Accepted the retirement of Library Clerk Elisabeth McCrea in 2017.

• Approved the payment of $700 in dues for 2017 to the Range Association of Municipalities and Schools;

• Approved the 2017 Ely Utility Commission budget;

• Cancelled the December study session.