Melrose City
November 21, 2013
The Melrose City Council met in a Regular Meeting on Thursday, November 21, 2013 at 5:30 p.m. at the Melrose City Center pursuant to due notice being given thereof. Present were Council Members Jenny Mayers, Joe Finken, Tony Klasen, Dick Christenson, Mayor Tim Vogel, City Administrator/Treasurer Michael Brethorst, Human Resource Technician Diane Gruber, and City Clerk Patti Haase. Mayor Vogel presided thereat. Also in attendance were several American Government students from the Melrose Area Public High School. The Council then recited the Pledge of Allegiance.
A motion was made by Mr. Finken, seconded by Mr. Klasen and unanimously carried to approve the agenda as submitted.
Mayor Vogel then opened the floor to public comment. Council Member Finken extended his sincere thanks and gratitude to all veterans for their service to our Country.
The following items were considered for approval under the Consent Agenda:
a. the minutes from the Council’s October 24 Special Joint Meeting with the Utilities Commission, the October 24 Regular Meeting, and the October 29 Special Meeting.
b. list of bills in the amount of $247,184.35.
c. list of investments for the month of October.
d. The following Ambulance Department uncollectible accounts have been submitted to collections or Revenue Recapture (RR):Acct. Numbers and Amount: 44 (RR), $699.40; 45 (RR) $613.20; 46 (RR) $1,003.20; 47 (RR) $150.00; 48 (RR) $75.29; 50 (Collections) $782.40; 51 (Collections) $1399.20; 53 (RR) $602.40; 54 (RR) $1004.40; 55 (Collections) $1165.20; 56 (Collections) $484.40; 61 (Collections) $375.20; 62 (Collections) $133.48; 63 (Collections) $150.00; 64 (RR) $150.00; 65 (RR) $136.40. Total: $8,924.17.
There was also a total of $1,551.48 collected from delinquent accounts during this quarter.
e. The following is a list of Fire Department accounts that have been submitted to Revenue Recapture or collections and are recommended to be charged off: Acct. Numbers and Amount: 43 (Collections) $200.00, 52 (RR) $200.00, 59 (RR) $200.00, 60 (RR) $200.00. Total: $800.00.
There was also a total of $311.50 collected from delinquent accounts during this quarter.
f. Donation Resolutions: 1) Resolution No. 2013-50, donation in the amount of $300 from Communities Connecting Cultures towards the Melrose Parks and Recreation.
2) Resolution No. 2013-51, donations from Central Minnesota Credit Union, Arvig, Coborn’s, Dymoke Law Office, VFW Auxiliary, Kurt and Mary Schwieters, and Irene Becker towards the Tri-Cap bus service.
A motion was made by Mr. Christenson, seconded by Ms. Mayers and unanimously carried to approve the Consent Agenda.
Members of the Melrose Lake Improvement Association (MLIA) presented information to the Council. George Traeger addressed the Council asking for their support in their ongoing efforts to improve the water quality of Melrose Lake. The deterioration of the mill pond started more than 100 years ago and MLIA is researching various options restore the water quality of the lake. Other cities in Minnesota and Wisconsin are reclaiming their lakes. MLIA will reach out to other governmental agencies for financial assistance as well as conducting environmental reviews to determine the overall environmental impact and management strategies to return the Melrose Lake to a valuable recreational resource.
Planning and Development Director Walz reported on the Commission’s November 7 Meeting. He noted that the Commission reviewed the Five Year Capital Improvement Plan regarding its 2014 and 2015 projects for compliance with the City’s Comprehensive Plan, as well as the potential purchase and leasing of property for conformity to the City’s Comprehensive Plan. These items will be discussed in greater detail later in the meeting.
The City Administrator/Treasurer presented the General Fund Financial Third Quarter Report. The revenues are at 51% and expenditures are at 65%. Included in the revenue for the third quarter are the two payments for the first half of the property tax payments and the first half of the 2013 LGA payment.
Police Chief John Jensen presented the Police Department’s October report. Chief Jensen noted that 21 citations were written for the month of October 2013. He stated there were 253 calls for service during this month compared to 254 for October of 2013. The year-to-date number of calls is 2238, compared to 2332 in 2012. Chief Jensen noted that seasonal parking went into effect on November 1. Please note these designated areas.
City Attorney Scott Dymoke reported on projects he has been working on for the City.
• CentraCare Expansion: Worked with City staff and attorney Tom Matthews on drafts of Easement Agreements for CentraCare expansion. Prepared and forwarded Waiver Agreement for work in existing easement.
• Verizon Tower Lease: Worked with City staff on draft of proposed terms for lease of space on the north tower from Verizon.
Mayor Vogel stated that the Melrose Lake Improvement Association (MLIA) is requesting support of the City of Melrose in their efforts to continue to research and develop solutions to resolve the concerns relating to Melrose Lake.
Council Member Finken introduced Resolution No. 2013-52, Resolution Supporting Melrose Lake Improvement Association and Its Mission to Preserve and Protect the Melrose Lake and Its Surroundings. The motion was seconded by Ms. Mayers with a roll call vote recorded as follows: For: Council Members Finken, Mayers, Christenson, Klasen and Mayor Vogel; Against: None.
Mayor Vogel noted that Police Chief Jensen is requesting the Council give consideration approving obtaining bids for the replacement of the 2006 Dodge patrol car. The Police Department anticipates securing two bids, one for a Dodge Charger police package and another for a Ford Police Interceptor sedan.
A motion was made by Mr. Klasen, seconded by Mr. Christenson and unanimously carried authorizing staff to obtain quotes for the replacement of the 2006 Dodge patrol car.
Mayor Vogel stated that in order to meet CentraCare Health System of Melrose’s timeline for construction, Melrose consents to the constructing improvements over its water and wastewater lines with the easement. CentraCare agrees to locate and install new water and wastewater lines, at its expense, prior to completion of the project. Upon installation of the new water and wastewater lines by CentraCare, Melrose’s existing wastewater lines with the easement shall be abandoned as necessary. CentraCare agrees that it is voluntarily, and at its sole risk, constructing improvements relating to the project over its water and wastewater lines within the easement. It also releases Melrose from any claims, demands, etc.
The Utilities Commission, at its November 12 meeting, approved the Waiver and Indemnification Agreement.
A motion was made by Mr. Finken concurring with the Commission approving the Waiver and Indemnification Agreement. The motion was seconded by Ms. Mayers with a roll call vote recorded as follows: For: Council Members Finken, Mayers, Christenson, and Mayor Vogel; Against: None; Abstain: Council Member Klasen due to a potential conflict of interest.
Mayor Vogel reported that according to the Fire Department Policies, Officers’ terms expire every two years. The terms will expire on January 1, 2014; therefore, applications for 1st Assistant Chief, 2nd Assistant Chief, and Training Officer were accepted through October 15. Three applications were received for the two Assistant Chief positions and two applications were received for the Training Officer position. Interviews were conducted by Fire Chief Jeremy Kraemer, Fire Department President Loren Pundsack, Vice President Shawn Waldvogel, Executive Committee Member Bunker Hill, and Secretary Craig Maus. They are recommending that Tom Budde be appointed as 1st Assistant Chief, Rick Berens as 2nd Assistant Chief, and Carl Worms as Training Officer.
A motion was made by Mr. Klasen approving the Officer appointments for 2014 and 2015. The motion was seconded by Mr. Christenson with at roll call vote recorded as follows: For: Council Members Klasen, Christenson, Mayers, and Mayor Vogel; Against: None; Abstain: Council Member Finken due to a potential conflict of interest.
Mayor Vogel stated that Police Chief Jensen is requesting the Council give consideration to begin the hiring process for the replacement of a part-time Police Officer. Chief Jensen reported that Aaron Baros accepted full-time employment with the Albany Police Department. A motion was made by Mr. Christenson, seconded by Ms. Mayers and unanimously carried authorizing staff to begin the hiring process for the replacement of a part-time Officer.
Mayor Vogel noted that the City, in cooperation with Minnesota Rural Water, Minnesota Department of Health Area Hydrologist, has completed the Phase – I Wellhead Protection Plan. It delineates the Wellhead Protection Area, Water Supply Management Area Delineation and Well and Drinking Water Supply Management Area Vulnerability Assessments. The Utilities Commission, at its November 12 meeting, approved the Wellhead Protection Plan. A motion was made by Mr. Finken, seconded by Mr. Klasen and unanimously carried concurring with the Commission approving the Wellhead Protection Plan.
Director Walz noted that a Stearns County Attorney’s Office representative will not be in attendance at a City Council meeting nor present a report to the Council on the actions taken to address our concerns as previously planned.
Nonetheless, the Stearns County Attorney’s Office has assured staff that with City support it will continue pursuing with Melrose Community LLC the resolution of the issues addressed in the lawsuit consisting of the construction of an adequate storm shelter for Rose Park and removal of the designated Public Health Nuisance mobile homes. Beyond the expected overall support by the City of the County’s actions in this elongated process, additional City support is being sought by Stearns County in terms of the City Attorney’s presence and participation, when necessary, when the various court hearings associated with the Melrose Community LLC/Rose Park matters occur. If the Council is interested, the Stearns County Attorney’s Office Representative is willing to meet with the Mayor and a Council Member along with staff at his office to discuss the matter in detail. A motion was made by Mr. Klasen, seconded by Ms. Mayers and unanimously carried directing City Attorney Dymoke to work with the Stearns County Attorney’s Office, as requested, regarding the Melrose Community LLC/Rose Park lawsuit and to represent the City in court regarding the matter as requested by the Stearns County Attorney’s Office.
Mayor Vogel reported that at the Council/Utilities Commission’s April 18 Joint Meeting, a motion was made to enter into a three-year contract with Abdo, Eick & Meyers LLP to perform duties as Financial Auditor. The costs for services are $29,000 and divided among the various departments based on assets. Auditing will occur in mid-February 2014 for financial activities in 2013. Staff has signed the 2013 engagement letter as directed.
Mayor Vogel stated that for future facilities’ expansion by the Melrose Public Utilities, most likely replacement of the west substation or possibly replacement or enlargement of the Utilities Garage at the south water tower location, consideration is being given to the acquisition by the City/Melrose Public Utilities of the residential property at 108 1st Street NW currently owned by Ted Kramer. Mr. Kramer has expressed to City staff his interest in selling the property to the City.
The Council has entrusted the negotiating process for acquisition of the property to the Property Acquisition/Disposition Committee. The Committee began its work the week of November 4. In accordance with the requirements of Minnesota Statutes Section 462.356 Subd 2, which is cited in A.I. #8c, the Planning and Zoning Commission is required to review the proposed real property acquisition by the City/Melrose Public Utilities for its compliance with the City’s Comprehensive Plan and report its findings in writing to the Council within 45 days [after the reference].
Staff’s review of the Comprehensive Plan yielded minimal reference to the expansion of public facilities, particularly those related to the City’s electrical enterprise. It is believed that this is such an elementary concept and need that minimal reference was given to it in the Plan. Reference is made under Goal 2 of General Goals and Policies to “Retain high quality infrastructure” and under Policy 2 of Immediate Goals and Policies to “Prepare transportation and infrastructure plans that will direct and support future growth”. At its meeting on November 7, the Commission determined that the acquisition of the real property at 108 1st Street NW by the City/Melrose Public Utilities for the purpose of future utilities expansion is in compliance with the City’s Comprehensive Plan and it authorized the Chair’s submission of correspondence containing its findings to the Council.
Mayor Vogel noted that the Council, at their October 24 meeting, and Utilities Commission, at their October 14 meeting, directed Electric Supervisor Dale Lyon and City Administrator Mike Brethorst to work with the Property Acquisition/Disposition Committee to coordinate the purchase of the property located at 108 1st Street NW, Melrose (PID 66.36582.0000).
On November 13, Administrator Brethorst and Supervisor Lyon met with Ted, Mike and Carol Kramer to negotiate a price. An initial offer of $65,000 was presented by the Kramer family. A counter offer was presented by the City, with a final agreed upon purchase price of $50,000 with shared closing costs as per standard purchase agreements.
The purchase is in the Five Year Capital Improvement Plan as a 50/50 split between the City and Electric Fund. It is the intent to demolish the home and use the space for future expansion space for the City or Utilities. The tentative closing date is December 12, 2013. As per statute, the Planning and Zoning Commission shall review the purchase of all properties and so they have reviewed the acquisition of property. The purchase was deemed to be in compliance with the Comprehensive Plan and recommends approval. A motion was made by Mr. Christenson, seconded by Mr. Finken and unanimously carried approving the negotiated price of $50,000 for the property and authorized staff to prepare and enter into a purchase agreement with the property owner.
City Administrator Brethorst noted that as was done historically, the Council and Commission to direct staff and the Ad Hoc Labor & Personnel Committee to conduct a full review of all positions upon departure of an employee along with conducting an in-house assessment of the overall organizational structure for the Public Works Director position. The Utilities Commission, at their November 12 meeting, approved staff to move forward with this process. Council Member Klasen stated that it may be beneficial to require that the Public Works Director hold a Class A License and that we should look into that.
A motion was made by Ms. Mayers concurring with the Utilities Commission directing staff to conduct a full review including an in-house assessment of the overall organization structure for the Public Works Director position. The motion was seconded by Mr. Finken with a roll call vote recorded as follows: For: Council Members Mayers, Finken, Christenson, and Klasen; Against: None; Abstain: Mayor Vogel due to a conflict of interest.
Administrator Brethorst stated that upon review and analysis of the Utility Funds, it is recommended that the Utility pay off the 2005B Go Refunding Bonds. Cash flow projections show it is feasible to pay off the bond versus in 2014.
There are a couple of factors to consider with regard to paying off the bond or the PFA Loan, both of which are Water Fund expenses. First, do we have the proper cash balances to pay off either loan? Yes, we do. The total pay-off amount for the bond is $831,706.25; for the PFA Loan the total pay-off amount is $588,769.38, a difference of $242,936.87. The current cash flow projections indicate that it is feasible to pay off the bond versus the PFA Loan.
The second factor to consider once we know that there is adequate cash flow is where we would see the most savings to the Utility. Paying off the bond early would realize a cost savings of $113,194 versus paying off the PFA Loan would save $35,929. That is a difference of $77,265 savings to pay off the bond versus the PFA Loan.
Below is a cost/savings analysis: 2005B Go Refunding Bonds Pay-off: Feb. 2014: $831,706.25 (Savings $113,194); Feb. 2015: $714,406.25 (Savings $82,081); Feb. 2016: $587,006.25 (Savings $55,669).
PFA Loan Pay-off: Feb. 2014: $588,769.38 (Savings $35,929); Feb. 2015: $423,950.58 (Savings $18,609); Feb. 2016: $254,044.78 (Savings $ 7,014).
Also taken into consideration during the cash flow analysis were the costs of the AMI Project. At this time, all costs for materials, equipment, and engineering have been paid through the Electric Fund. Labor costs for staff to install meters/equipment have already been expensed to the Water Department. Upon completion of the AMI Project, the auditors will review the costs and allocate the portion of costs associated with the Water Department. At that time, staff will make journal entries to expense the cost accordingly. Thus, this will also decrease the cash balance in the Water Fund due to reimbursement to the Electric Fund. These costs were taken into consideration during the cash flow analysis.
The Utilities Commission, at its November 12 meeting, authorized staff to initiate the pay-off the 2005B GO Refunding Bond. The Council, at its December meeting, will be asked to pass a resolution to notify the bond holders of the intent to pay off the debt.
Director Walz stated that as in the past, the Planning and Zoning Commission annually has reviewed part or all of the City’s proposed Five Year Capital Improvement Plan for compliance with the City’s Comprehensive Plan. This review/determination for compliance and the accompanying follow-up written report to the Council is required by Minnesota Statutes Section 462.356 Subd 2. It is noted that a “capital improvement” is defined as the “betterment of public lands, buildings or other improvements”. At its meeting on November 7, the Commission reviewed for written comment to the Council the compliance with the Comprehensive Plan of the proposed 2014 non-equipment related expenditures, along with those proposed for 2015, contained in the Five Year Capital Improvement Plan and Levy Information Years 2014-2018. For reference and comparison, present Year 2013 was also included in the Commission’s review. The Commission determined that the proposed non-equipment related expenditures proposed for Years 2014 and 2015 are in compliance with the City’s Comprehensive Plan and authorized the Chair’s execution of correspondence to the Council evidencing its findings.
Mayor Vogel stated that Verizon Wireless LLC (Verizon) has confirmed its interest to locate as many as 12 cellular communication antennas within the City and has selected the City-owned north water tower at 11 5th St NW as the most desirable location despite staff having pointed out several other possible locations. Staff, with assistance from City Attorney Scott Dymoke, is addressing such matters as the proposed lease agreement, structure design compatibility with the neighborhood and the like. It should be noted that currently while the north water tower has few, if any, antennas or similar devices on its top, the south water tower has a substantial number of them plus equipment of both Sprint and Charter located within the base of the tower. It has previously been determined that the requirements of the aforementioned Minnesota Statutes Section 462.356 Subd 2 cited in A.I. #8c and A.I. #7c apply also to the City’s leasing of its property. Since the request of Verizon is not only to attach the 12 antennas to the top of the north water tower but to erect/place an 11’-6” x 29’-5½” structure at the tower’s base, the Commission considered it prudent to make a recommendation to the Council regarding the compliance of this lease activity/”property disposition” with the City’s Comprehensive Plan.
As expected, the Plan contains no direct reference to cellular communications and similar utilities – public or private. It may be possible to interpolate that cellular communications services are not unlike the utilities provided by the City and accordingly are considered infrastructure which needs to be retained and planned for in order to direct and support future growth. At its meeting on November 7, the Commission considered whether the proposed leasing of part of the City-owned real property at 11 5th Street NW (the North Water Tower site) by the City to Verizon for cellular communications use is in compliance with the City’s Comprehensive Plan. The Commission determined that such use by Verizon was in compliance with the Plan and authorized the Chair’s submission of correspondence containing its findings to the Council.
Mayor Vogel reported that due to CentraCare’s senior living facilities expansion project, the regular skating rink will not be available for use this 2013 – 2014 skating season. Streets/Parks Supervisor Mark Maus has discussed use of the hockey rink with the contractor and both are in agreement that the hockey rink will be available with adequate parking for rink users. Staff is making contact with past Skating Rink Caretakers of their interest and availability to again staff the warming house as well as determining a schedule for the rink’s use for freestyle skating as well as hockey. A motion was made by Mr. Finken, seconded by Ms. Mayers and unanimously carried authorizing City Administrator Brethorst to hire a person(s) for the 2013-2014 skating rink caretakers if the rink is opened prior to the next Council meeting.
Consideration was then given to the proposed 2014 meeting schedule. The meetings for all months are scheduled for the third Thursday of the month, with the exception of January which will have a meeting on both the first and fourth Thursday of that month. The hearing on the proposed 2015 budget and levy is proposed to be set for Thursday, December 11, 2014. This was agreeable to the Council.
The following informational items were discussed:
a. The following is a list of schools and/or conferences where registrations have been made: 1. Managing Human Capital – Best Practices for Hiring, Developing, and Leading Talent (Webinar – no charge) Attending: Human Resource Coordinator Diane Gruber; 2) CCOGA Affordable Care Act Seminar, RTS St. Cloud on October 28. Registration: N/A. Attending Human Resource Coordinator Diane Gruber.
b. Utilities Commission’s October 14 Regular Meeting minutes.
c. Moved to A.I. #6f
d. The Council, at its October 24 Regular Meeting, directed staff to seek bids, trade in necessary old equipment as per policy, and allow staff to award bid to lowest bidder, with a cap of $46,000 for the purchase of the three power cots and one stair chair for the Ambulance Department. The low bid was awarded to Striker for a cost of $40,000. Efforts are currently underway to raise funds to offset the cost power cots. Letters have been sent to various service organizations and interested stakeholders in the ambulance services.
e. Planning and Zoning Commission’s September 10 Regular Meeting minutes.
f. MADA/COC’s August 26 Regular Meeting minutes.
g. On November 23, HR Coordinator Diane Gruber will receive her 30-year recognition award of $150 as outlined in City Personnel Policy – Employee Recognition Program. Ms. Gruber is to be commended for her years of service.
h. On November 23, 2013, Water/Wastewater Operator Jeremy Schrantz will complete four years of service with the City. Public Works Director John Harren conducted Mr. Schrantz’s review and it is favorable; therefore, recommended approval of a step increase from Step 6 ($22.78/hour) to Step 7 ($23.73/hour). The Utilities Commission took action approving Mr. Schrantz’s step increase at their November 12 meeting.
On November 23, 2013, Water/Wastewater Operator Josh Elfering will complete two years of service with the City. Public Works Director John Harren conducted Mr. Elfering’s review and it is favorable; therefore, recommended an approval of a step increase from Step 5 ($21.83/hour) to Step 6 ($22.78/hour). The Utilities Commission took action approving Mr. Elfering’s step increase at their November 12 meeting.
i. Two applications were received for the Water/Wastewater Supervisor position. Neither of the applicants met the minimum requirements of the T&E Rating; therefore, no interviews were conducted. One applicant had the experience, but does not hold a Class A Wastewater license and the other applicant holds a Class A license, but does not meet the minimum experience requirements of the T&E Rating. This position will be reevaluated and reviewed.
A motion was made by Mr. Klasen, seconded by Mr. Finken and unanimously carried that the meeting be adjourned at 6:30 p.m.
Patricia Haase, City Clerk