The Melrose City Council met in a Regular Meeting on Thursday, January 21, 2016 at 6:40 p.m. at the Melrose City Center pursuant to due notice being given thereof. Present were Council Members Dick Christenson, Jenny Mayers, Tony Klasen, Josh Thieschafer and Mayor Joe Finken, City Administrator Michael Brethorst, and City Clerk Patricia Haase. Mayor Finken presided thereat. The Council then recited the Pledge of Allegiance.
A motion was made by Mr. Christenson seconded by Mr. Thieschafer and unanimously carried to approve the agenda as submitted.
Mayor Finken then opened the floor to public comment. There were no comments.
The following items were considered for approval under the Consent Agenda:
a. the minutes from the January 7 Regular Meeting.
b. list of bills in the amount of $ 1,354,527.84.
c. list of investments for the month of December 2015.
d. Gambling Resolutions: 1) Resolution No. 2016-5, Resolution Approving Gambling License to the Church of St. Mary’s for an exemption from lawful gambling license to conduct a raffle on December 31, 2016 at 402 2nd Street SE in Melrose.
2) Resolution No. 2016-6, Resolution Approving Gambling License to the Church of St. Mary’s for an exemption from lawful gambling license to hold a bingo on March 13, 2016 at 402 2nd Street
3) Resolution No. 2016-7, Resolution Approving Gambling License to the Church of St. Mary’s for an exemption from lawful gambling license to hold a raffle on June 25, 2016, at 402 2nd Street SE, Melrose.
A motion was made by Mr. Thieschafer seconded by Mr. Christenson and unanimously carried to approve the Consent Agenda items.
a. WSB has been contracted to provide an assessment and to develop a recommendation to maintain the City Road and Trail Net Work. Ms Andrea Azary with WSB & Associates presented the report and its findings. Ms. Azary commended the Street Department for their proactive approach to the street maintenance which is reflected in the above average ratings.
b. Police Chief Craig Maus presented the Police Reserves Semi-Annual Report noting that the Reserves continue to do ride along on a regular basis to maintain their required hours. The Reserves currently have three members. Recruitment efforts are being pursued.
c. Police Chief Maus presented the Police Department’s December report. He noted that a total of 14 citations were issued in the month of December. There were 140 verbal warnings and twenty-five written warnings. Chief Maus stated there were 323 calls for service during December 2015 compared to 209 for December of 2014. The year-to-date number of calls is 3229 compared to 2717 in 2014. For the month of December 2015, the Department received 31 agency assist calls.
d. City Attorney Scott Dymoke reported on projects he has been working on for the City: Community Development: Prepared letter of agreement for sale of property to local business seeking to expand its operations. Prepared memorandum to City staff outlining planning, zoning, and subdivision issues that will need to be addressed as part of proposed expansion.
e. Finance Director Tessa Beuning presented the Ambulance Department Year Report and the 2017 proposed budget. 2015 Ambulance Operating Account Year End Statement of revenues and expenses, along with Set-aside Statement. In 2015, there was net income of $91,313.98. The accounts receivable balance at year-end was $136,356.35. Please note there was no contract revenue for 2015 from the City and the area townships and cities as the Ambulance Operating Fund continues to have an adequate reserve.
The 2015 Set-aside Statement indicates the vehicle replacement set-aside funds as of December 31, 2015 total $41,501.17. Depreciation for 2015 was $26,900, and there were not any vehicles purchased. For 2016, $22,155 is budgeted under depreciation expense, and for 2017, $22,000 is budgeted. Actual annual depreciation is set-aside for future vehicle purchases.
The miscellaneous equipment set-aside remaining as of December 31, 2015 is $42,762.72. For 2016, $8,325 is budgeted under depreciation expense, and for 2017, $9,000 is budgeted. Actual annual depreciation is set-aside for future equipment purchases.
Operating Account Budget adopted for 2016 and proposed 2017 of expenses and revenues. No revenue will be expected from the City and area townships and cities in 2016 or 2017.
This fund is an enterprise fund and, therefore, includes depreciation expense versus capital outlay accounts. All fixed assets greater than $5,000 are capitalized and depreciated out over their life. These funds are then set aside to be available when replacement of vehicles and equipment are necessary. Equipment items that are less than $5,000 are considered supplies or minor equipment as per the City’s Capital Assets Policy.
The proposed budgeted expenses for 2017 total $509,214, which includes $17,454 for building rent. The rental amount is based on total square footage of the lower level plus the upstairs living quarters for Ambulance Members on call, resulting in a 33% Ambulance/67% Fire Department share of the annual rental costs of $52,257. The projected revenues are $511,000, resulting in a surplus of $1,786, which would be added to reserve funds. Ambulance charges are continually monitored to meet operating costs.
City Administrator Brethorst noted that Ambulance Director Jenn Tschida may be recruiting volunteers as the department has seen an increase in call volumes in the last three months. Ms. Tschida is also researching the purchase of 2 or 3 Automated CPR machines, the Lucas, manufactured by Jolife. The device includes a stabilization strap to further secure the device to the patient as well as two arm straps to hold the patients arms out of the way.
f. Finance Director Beuning next presented the Fire Department Year End Report and the 2017 proposed budget. Expenditure & Revenue Reports for 2015 and 2014. Fire charge revenue totaled $15,270 compared to $16,200 in 2014.
The 2016 credit is $25,245.30 as presented at the February 19, 2015 meeting with contract area officials. The 2017 credit will be $7,457.31 and is calculated as shown on the 2015 revenues and expense sheet.
Over the course of many years, some additional funds have accumulated in the Fire Department. Since no funds are received on the contracts until December of the contract year, it is recommended that $50,000 be designated for operating costs for the year. Based on the principal of requiring the $50,000 for operations, and the amounts set-aside for future vehicles and equipment, a refund of $7,457.31 will be applied to the 2017 contract. This is how all future refunds are recommended to be calculated.
Fire #2 also includes the information on set-aside funds. A balance of $161,771.42 is available for vehicle equipment replacement set-aside at year-end 2015. For years 2016 and 2017, $36,100 is budgeted annually for Capital Outlay/Vehicles. The 1984 Grass Rig is anticipated to be replaced in 2016, at a cost estimated at $65,000, as well as a new fire truck with an estimated cost of $202,604.
There are protective gear/clothing/equipment set-aside funds of $67,581.18. For 2016 and 2017, $15,010 is budgeted for Capital Outlay/Equipment & Clothing.
The 2017 Expenditure Budget, as proposed, remained flat with the approved 2016 Expenditure Budget.
The proposed 2017 fire contract charges are based on the total budget amount of $175,253, which is the same as the adopted 2016 budget less excess fund balance funds being applied. Annual anticipated revenues from fire charges are $17,000.
a. Fire Chief Kraemer noted that the Council at its December 10, 2015 Regular meeting authorized staff to prepare specifications and receive bids for the replacement of our main line Fire Tanker which was totaled out in an accident earlier in the year. Mr. Kraemer noted that tankers have actually appreciated in value and therefore finding a used tanker at comparable cost vs. a new tanker would be difficult. The City solicited bids. Two bids were received varying from $202,604 to $219,772.75. After a review of the bids, by the Fire Chief and Fire Department Truck Committee, it is their recommendation to purchase the Midwest Fire Chassis and Apparatus and dispose of the damaged tanker for a cost of $202,604.00 plus taxes and fees.
A motion was made by Mr. Thieschafer seconded by Mr. Klasen and unanimously carried authorizing the purchase of a new tanker from Midwest Fire in the amount of $202,604 plus tax and fees, and disposal of the old tanker.
b. Chief Kraemer noted that the Fire Department has a Fire Relief Association that assists with the Volunteer PERA pension program. With the change over from an independently managed retirement program to the State of MN PERA managed pension program an update was needed to the policies. The Relief Association has modified and updated their Policies to reflect the changes for the PERA. The Fire Relief Association has adopted the changes
A motion was made by Ms. Mayers concurring with the Fire Relief Association approving the updated Fire Relief Association Policies. The motion was seconded by Mr. Christenson with a roll call vote recorded as follows: For: Council Member Mayers, Christenson, Klasen, and Thieschafer; Against: None; Abstain: Mayor Joe Finken due to a conflict of interest.
c. Mayor Finken noted that within the Fire Relief Policy outlines the members of its Board. The Board shall consist of 3 ex-officio trustee; the Chief of the Department, the Mayor and a designee of the City of Melrose. The appointment of a designee of the City must be appointed annually according to 424A.04, SUBD. 1A. As the Mayor position is noted in the By-laws, this constitutes the annual appointment for the elected official. The by-laws do not call out the other municipal or elected official and therefore would require annual appointments. The City Administrator has filled this role over the past five years. The City Clerk has served as the alternate to the City Administrator when absent.
A motion was made by Ms. Mayers nominating Mr. Klasen as the City Designee to the Fire Relief Association Board for a term to expire December 31, 2016. The motion was seconded by Mr. Christenson with a roll call vote recorded as follows: For: Council Member Mayers, Christenson, Thieschafer, and Klasen; Against: None; Abstain: Mayor Joe Finken due to a conflict of interest.
d. The City hosts an annual meeting with the Fire Department contracted Area Township and City Officials. In an effort to consolidate the meeting and duplicate reporting needs from the Fire Chief and Ambulance Coordinator, it is proposed to hold the joint meeting on the night of the regular meeting at the Fire / Ambulance Building. Plus, we would change the format slightly to have light snacks and juice vs. a full meal.
A motion was made by Mr. Christenson seconded by Mr. Thieschafer and unanimously carried moving the February 18 Regular Meeting from the City Center to the Fire Hall.
e. Consideration was given to approval of the following renewal liquor license applications:
1) Intoxicating Liquor:
a. License #2: LKMTA Inc. DBA Anthems @ MP’s, On Sale.
b. License #3: Melrose Bowl Inc. DBA Melrose Bowl, On Sale, and License #3, Sunday On Sale.
c. License #4: The Dam, Inc. DBA The Dam Bar, On Sale, License #2, Off Sale, License #4, Sunday On Sale.
d. License #5: Melrose Place LLC DBA Middy’s Bar, On Sale, License #3, Off Sale, License #7, Sunday On Sale.
e. License #4: LQR, Inc. DBA SPIRITZ Off Sale Liquor, Off Sale.
f. License #6: Meadowlark Country Club, On Sale, and License #2, Sunday On Sale.
g. License #7: Ana Hernandez DBA El Portal, On Sale, License #6, Sunday On Sale.
h. License #5: Coborn’s Inc. DBA Coborn’s Liquor, Off Sale.
2) Club and Sunday On Sale: a. License #1: American Legion Post #101, Club On Sale License, and License #1, Sunday On Sale.
3) Wine License:
a. License #1: John Dough’s Pizza, Wine License & 3.2% On Sale, Malt Liquor .
b. License #2: Martinez Meat & Grocery, Wine License & 3.2% On Sale Malt Liquor.
4) 3.2% Off Sale Malt Liquor License: a. License #1: Martinez Meat & Grocery, 3.2% Off Sale Malt Liquor .
All applications must be executed, fees paid, and certificates of insurance as to liquor liability coverage obtained for Council approval.
Minnesota law requires cities to obtain proof that all licensees provide workers’ compensation insurance for their employees. The City must also obtain licensees’ social security numbers, and Minnesota and federal tax identification numbers for the Department of Revenue’s use.
The licenses will be effective March 1, 2016 to March 1, 2017.
A motion was made by Ms. Mayers seconded by Mr. Klasen and unanimously carried approving the liquor license renewal applications contingent upon receipt of all necessary documentation and payment of all necessary fees.
f. With the review of the Pavement Management Plan, it is therefore recommended that additional seal coating and crack sealing be completed in 2016, than originally proposed. Staff is recommending seal coating and crack sealing per the attached map which is approximately 11,575 linear feet. Additional crack sealing will be performed as part of routine maintenance.
A motion was made by Mr. Klasen, seconded by Ms. Mayers and unanimously carried authorizing staff to obtain bids for Seal Coating and Crack sealing for 2016 for the area as indicated on the map. .
g. Mayor Finken stated that with the updates of the Zoning Ordinance, we are now required to complete some administrative changes to the City Code to reflect the Changes. Therefore, an Ordinance has been drafted to amend the document to reflect the changes in the Zoning Ordinance. The old verbiage read as follows: A dwelling shall have a minimum width for the main habitable portion of the structure of not less than 23 feet. No dwelling shall have a finished ground / main floor space of less than 800 square feet excluding a basement. The new verbiage is: Newly Adopted standards are:
Efficiency apartments: 400 square feet.
One Bedroom apartments: 640 square feet.
Two bedroom apartments: 720 square feet.
More than two bedroom apartments: 120 square feet additional for each room.
Mr. Christenson introduced Ordinance 1-21-2016, An Ordinance Amending Melrose City Code Chapter 151 Housing Code Section 151.07(B) Maximum Density, Minimum Space, Use and Location. The motion was seconded by Mr. Klasen with a roll call vote recorded as follows: For: Council Members Christenson Klasen, Mayers and Mayor Finken; Against: Council Member Thieschafer.
h. Mayor Finken recognized Lyle Olmscheid for his 30 years of service on the Melrose Public Utilities Commission .Mayor Finken presented a Proclamation thanking Lyle for his dedication and service to the community.
A motion was made by Mr. Christenson, seconded by Mr. Thieschafer and unanimously carried to adopt a proclamation in recognition and appreciation of the loyal and professional service provided and the many contributions made to the community by Mr. Olmscheid.
a. Chief Maus noted that in 2015, the Melrose City Council approved the hiring of a part time police officer. Chief Maus will be working with the Paynesville and Belgrade Police Department in the next few months to share the Part-Time Officer. Chief Maus is planning to have a candidate selected and recommended to the Council prior to the summer and vacation times.
The following informational items were then discussed:
a. The following are schools and/or conferences where registrations were made: 1) Training- MCMA Development Workshop- January 28-29. Attending: City Administrator Mike Brethorst
b. Public Utilities Commission December 14, 2015 Regular Meeting minutes.
A motion was made by Mr. Thieschafer, seconded by Ms. Mayers and unanimously carried that the meeting be adjourned at 7:50 p.m.
Patricia Haase, City Clerk