The Melrose City Council met in a Regular Meeting on Tuesday, July 26, 2016 at 7:15 p.m. at the Melrose City Center pursuant to due notice being given thereof. Present were Council Members Tony Klasen, Dick Christenson, Josh Thieschafer, Mayor Joe Finken, City Administrator Michael Brethorst, and City Clerk Patti Haase. Council Member Jenny Mayers was absent. Mayor Finken presided thereat. The Council then recited the Pledge of Allegiance.
A motion was made by Mr. Klasen, seconded by Mr. Thieschafer and unanimously carried to approve the agenda as amended.
Bridget Salzmann stated on behalf of the landowners within 350 feet of Willow Trucking they oppose the Conditional Use Permit as requested by Willow Trucking. Ms. Salzmann noted that in the Zoning Ordinance/Subdivision Ordinance, granting this request would not comply with that ordinance as it states in Section 600 General Regulations 601 – Residual Features; No activity or operation shall be established or maintained which by reason of its nature or manner of operation will cause the emission of noise, odor, toxic, or noxious fumes, smoke, dust, and particulate matter in such concentration as to be detrimental to or endanger the public health, welfare, comfort and safety or cause injury to property or business. Ms. Salzmann asked for the Council’s support denying this request to Willow Trucking.
Don Salzmann commented on the drainage issues which he anticipates to occur should the development be permitted.
Merikay Durand commented on the noise issue and stated a ten foot fence would not alleviate the vehicle light or building light issue for her specific piece of property.
Mayor Finken stated that he had attended the Sauk River Players production of The Little Mermaid. Mr. Finken commented that it was a fantastic event and noted the amazing talent of all of those involved including those individuals behind the scene such as costume and set design. Mayor Finken expressed his appreciation to Director Marit Elliot for providing the community with the theatrical experience and showcasing the talent of our residents.
Approval of the following: The minutes from the June 9 Special Joint Meeting with the Melrose Public Utilities Commission and MADA, June 16 Regular Meeting ,and the June 28 Special Joint Meeting with the Public Utilities Commission
• List of bills in the amount of $382,896.28.
• List of investments for the month of June.
• Streets/Parks Worker Keith Dobmeier’s will complete one year of service with the City on August 10. Streets/Parks Supervisor Gary Middendorf has conducted Mr. Dobmeier’s review and it is favorable; therefore recommends he receive a step increase from Step 3 ($21.03) to Step 4 ($22.03). The Council to take action approving Mr. Dobmeier’s increase.
Donation Resolutions: 1) Resolution No. 2016-24, from the various sponsors and contributors towards the City of Melrose Parks and Recreations Capital Fund from the Golf Scramble Fund Raising Event.
2) Resolution No. 2016-25 donation in the amount of $1,000 from the St. Rosa Lions to the Melrose Ambulance Department.
The Council to give consideration to approval of a Community Festival License: Public Property to The Dam, Inc. for Saturday, August 27, 2016. The event will be held outdoors and a portion of 4th Avenue NE from Main Street to 1st Avenue NE will be closed. This event must comply with City Code Chapter 113.23 (D) which deals with Community Festivals, Public Property. Police Chief Maus and City Administrator Brethorst have reviewed the Community License Application and recommend approving the application.
Police Chief Craig Maus is requesting approval be given to the appointment of Jeremy Vearrier to the Police Reserves contingent upon completion of a pre-employment physical and drug and alcohol testing. He has recently graduated from the Alexandria Technical College for law enforcement. The Council to take action on the appointment.
The City has received a 2:00 a.m. Closing Liquor License Application from Anthems at MP’s. City Code Chapter 113 adopts M.S. Ch. 340A by reference which allows sales of intoxicating liquor between the hours of 1 and 2:00 a.m. after obtaining a permit from the State of Minnesota. The State provides the application form and collects the license fee. The City has the ability to also establish a fee, however, has chosen not to.
A motion was made by Mr. Christenson, seconded by Mr. Klasen and unanimously carried to approve the Consent Agenda items.
Mayor Finken stated that Secretary Mary Hollenkamp retired on Friday, July 15. The Council recognized and commended Ms. Hollenkamp for her 26+ years of service with the City. Mayor Finken presented Ms. Hollenkamp with a retirement memento in recognition of the City’s appreciation of her dedicated service.
Police Chief Craig Maus presented the Police Department’s June report. He noted there were 247 calls for service during that month, compared to 210 for June 2015. The year-to-date number of calls is 2,013 compared to 1,529 in 2015. A total of 12 citations were written for the month of June. For the month of June 2016, the Department received 29 agency assist calls. Chief Maus invited the community to attend the Night to Unite that was held on Tuesday, August 2 at the Sauk River Park. It is a great opportunity to get to know members of the community and your local law enforcement officers.
Community Development Director Mike Creelman reported on the Planning and Zoning Commission’s July 11 Regular Meeting. The Commission held a Public Hearing on the request submitted by the Melrose Area Food Shelf on behalf of Ryan Hinnenkamp Parcel for the operation of a Food Shelf/Grocery and related operations. This will be discussed later on at this evening’s meeting. The Commission also reviewed the zoning ordinance pertaining to minor subdivisions, fencing/screening and the abating process for weeds, grass and plant in violation of City Code
City Attorney Scott Dymoke was not in attendance. His report is as presented: 1. Community Development- Zoning Ordinance: Prepared amendment to fencing and screening requirements of zoning ordinance.
2. Community Development, Subdivision Ordinance: Prepared amendment to platted lot consolidation and division requirements of subdivision ordinance.
3. Community Development, JOTS Project: Attended meeting with City Administrator and TIF/ Development Consultant to review terms, process, and timelines for preparing Development Agreement.
4. Community Development, 2nd Avenue NW: Prepared resolutions, certificates, easements and deed for use in 2nd Avenue NW project.
5. City Code, Weed Ordinance: Prepared draft of proposed amendment to weed control regulations providing that control orders are effective for one year.
Mayor Finken noted that the Planning Commission of the City of Melrose at its Monday, July 11 regular meeting reviewed the Conditional Use Permit request and has recommended approving the CUP.
The CUP is received to accommodate a request submitted by the Melrose Area Food Shelf on behalf of Ryan Hinnenkamp Parcel for the operation of a Food Shelf/Grocery and related operations. (Operations, office and possibly a loading dock). A public hearing was held on July 11 of which there were no public comments presented.
Mr. Thieschafer introduced Resolution No. 2016-28 Resolution Approving Case No. 2016-711 Conditional Use Permit (Cup) Requested By Melrose Area Food Shelf, Owned By Ryan Hinnenkamp For The Operation Of A Food Shelf/ Grocery Store As Allowed By CUP. The motion was seconded by Mr. Christenson with a roll call vote recorded as follows: For: Council Members Thieschafer, Christenson, Klasen, and Mayor Finken; Against: None; Absent: Council Member Mayers.
Mayor Finken stated that the Planning Commission of the City of Melrose at its Monday, July 11 regular meeting reviewed the Cities Minor Subdivision Code and recommends amending to allow Administrative Lot splits.
The City Minor Subdivision code currently does not allow for administrative lot splits of Platted Lots to be sold to a separate owner. Historically, the City will allow a lot split for properties that are adjoining and being merged into one larger lot. The City Subdivision Code and state law allows for a meets and bounds subdivision of lots to be sold to separate owners if it is 2.5 acres are greater. Many Cities have adopted rules to allow for properties to be subdivided further if it is already platted into an Out Lot.
A survey of other cities was conducted and New Ulm, Breezy Point, Alexandria and Hanover responded and stated that they allow Administrative Lot splits if it’s already platted. City Attorney Scott Dymoke and City Administrator Brethorst have looked into other Cities as well as contacting the City Engineer, Mike Nielson as well as John Halter with S.E.H. and got their opinions on the matter. In short, this is a common practice to allow platted lots to be subdivided.
Staff does not object to a lot split if it is already platted and if would meet the subdivision code. In practice, there are properties today that this would then allow buildings to be potentially developed on and built on. Melrose is quickly building out all available lots that have ready access to utilities. This could potentially create additional lots in town that would otherwise make it cost prohibitive to develop.
This textual amendment would not affect meets and bounds properties as they are required by law to be platted if they 2.5 acres or less.
A motion was made by Mr. Thieschafer, seconded by Mr. Christenson and unanimously carried adopting Ordinance 7-21-2016-1. An Ordinance Amending Land Subdivision Regulations Ordinance No. 1999-B, as Amended, Adopted by Reference as Chapter 152, to Adopt Platted Lot Consolidation and Division Requirements to allow Lot Splits of Platted lots.
Mayor Finken noted that the Planning Commission of the City of Melrose at its Monday, July 11 regular meeting, reviewed the Cities Fencing and Screening language within the Zoning Regulations. They are recommending a textual change to the Ordinance clarifying the regulations.
The recent update of the City Zoning Ordinance attempted to update the screening and buffer rules. The former ordinance was not clear on the matter of buffers and screens. The new rules will technically require fencing of Non-Residential properties front yards to be screened when it is adjacent to residential properties.
In practice, the City would require screening in front of developments such as: Boomerang Sports, Melrose Public School, St. Mary Elementary School, several Industrial properties along 8th Ave, CentraCare Health, Spiritz Liquor, CCC, Victory Gas Station, Melrose Fire Hall, Coborns, etc. This would occur when additions and permits are pulled for those sites.
In reading the requirements and working through the intent of the rule, it is thought that this may be an unintended requirement. In reviewing other neighboring community’s rules on this matter, we have not found any that require such a screen in front yards of properties unless it is in metropolitan communities. Unless, this was the intent of the rule, it would require a textual amendment to the Zoning Ordinance.
To address this issue at the onset of the rule, City Attorney Scott Dymoke and City Administrator Brethorst worked up some language that would define the rules to be more manageable. The new verbiage would address it as follows: if it was touching the property, screening and buffers will be required (ie. Willow Trucking, Food Shelf, Pete Rotherfork’s new developments.) All roads would be considered a buffer as it is adjacent versus adjoining.
Mr. Christenson introduced Ordinance 7-21-2016-2 An Ordinance Amending Zoning Ordinance No. 1989-1-as Amended, Adopted by Reference as Chapter 153 of the Melrose City Code, to Revise Screening and Fencing Requirements. The motion was seconded by Mr. Klasen with a roll call vote recorded as follows: For: Council Members Christenson, Klasen, Thieschafer, and Mayor Finken; Against: None; Absent: Council Member Mayers.
Mayor Finken stated that the Planning Commission of the City of Melrose at its Monday, July 11 regular meeting reviewed the Nuisance Notification process. They are recommending the City of Melrose amend its Ordinance to change notice requirements.
In accordance with the City Code the City may abate a violation of the Trees, Shrubs, Landscaping, Weeds and Other Plants within the growing season in which the violation occurs. Melrose has properties that are historically season after season in violation. The rules currently call out 8 inches as the threshold for violation. The mitigation process can take up to 30 days once notice is given. So the original 8 inch violation may be as high as 12-16 inches by the time it can be legally abated.
In reviewing the City Code, it states, that the City can mitigate the violation within the growing season. To address the reoccurring offenders it is recommended by the Streets and Parks Supervisor and Police Chief to increase the enforcement period to 12 calendar months from date of issuance. This would allow the City enough time to address the repeat offenders the following year without allowing a 12-16 inch weed/grass problem from occurring.
Mr. Klasen introduced Ordinance 7-21-2016-3. An Ordinance Amending Chapter 95: Trees, Shrubs, Landscaping, Weeds and Other Plants of the Melrose City Code from growing season to 12 calendar months. The motion was seconded by Mr. Thieschafer with a roll call vote recorded as follows: For: Council Members Klasen, Thieschafer, Christenson, and Mayor Finken; Against: None; Absent: Council Member Mayers
Mayor Finken next reported that the Planning Commission of the City of Melrose at its Monday, July 11 regular meeting reviewed the Temporary Family Health Care Opt out law. They are recommending the City of Melrose Opt out of this law.
The State established a new special land use permit system for a specific type of mobile health care-related temporary housing that will be required in all cities and counties unless they officially act to opt out of the program. The main stated motivation behind the new law is to provide transitional housing for seniors, but the statute does not include age as criteria for use of the structure.
The structural requirements are defined in Subd. 2 which lists the requirements for a dwelling to qualify for this program. Among the 10 criteria are a lack of being attached to a permanent foundation; a 300 square foot maximum size; meeting state accessibility standards, access to water and electrical connection; exterior appearance requirements; R-15 insulation; an anti-backflow valve; and to be classified as a recreational vehicle, prefabricated building, or modular building.
The law does allow for cities to opt out if they so choose. However, that must be completed by no later than September 1, 2016. Otherwise, a city must comply with the regulation.
Mr. Thieschafer introduced Ordinance 7-21-2016-4. An Ordinance Amending Zoning Ordinance No. 1989-1-A, as Amended, Adopted by Reference as Chapter 153 of the Melrose City Code Opting-Out of the Requirements of Minnesota Statutes, Section 462.3593. The motion was seconded by Mr. Christenson with a roll call vote recorded as follows: For: Council Members Thieschafer, Christenson, Klasen, and Mayor Finken; Against: None; Absent: Council Member Mayers
Mayor Finken noted that there are 6 tax forfeited properties in Daylight Court. The County currently has set a value of $2,000 per lot plus fees and assessments with interest and taxes of approximately $33,177 for a total cost of $35K plus per lot. The MADA Board has recommended that interest be waived to these lots and recertify at original amount. Plus, allow for lot mergers with incentives. If a lot is merged and one house is built, they are recommending that one of the lots specials be waived in full. If a lot is split between two parcels and no home is built that we waive the water and sewer assessment for one of the lots but reassess all other remaining assessments equally between the lot mergers.
1. Daylight Court: Block 1, Lot 2: Waive Interest and reassess at $25,462; (a) If lot is split and merged with Lot 1 and 3; (i) Daylight Court, Block 1, Lot 2: Waive Interest and Water and Sewer Connection and reassess at $13,410; 1. City would assess Lot 1 – $6,705; 2. City would assess Lot 3 – $6,705
2. Daylight Court: Block 1, Lot 4: Waive Interest and reassess at $25,462; (a) If lot is split and merged with Lot 3 and 5; (i) Daylight Court, Block 1, Lot 4: Waive Interest and Water and Sewer Connection and reassess at $13,410; 1. City would assess Lot 3 – $6,705; 2. City would assess Lot 5 – $6,705
3. Daylight Court: Block 1, Lot 6: Waive Interest and reassess at $25,462.
4. Daylight Court: Block 1, Lot 7: Waive Interest and reassess at $25,462; (a) If Lot 6 and 7 are merged waive Interest for both lots and waive assessment on Lot 6 and reassess newly merged lot at $25,462.
5. Daylight Court: Block 2, Lot 1: Waive Interest and reassess at $25,462.
6. Daylight Court: Block 2, Lot 2: Waive Interest and reassess at $25,462; (a) If Lot 1 and 2 are merged waive Interest for both lots and waive assessment on Lot 1 and reassess newly merged lot at $25,462.
Mr. Christenson introduced Resolution No. 2016-26 Resolution by the City of Melrose Reducing Special Assessments for Tax Forfeited Properties in Daylight Court Addition. The motion was seconded by Mr. Thieschafer with a roll call vote recorded as follows: For: Council Member Christenson, Thieschafer, Klasen, and Mayor Finken; Against: None; Absent: Council Member Mayers.
Mayor Finken noted that the Planning Commission at its May 2, 2016 meeting held a public hearing relating to the Willow Trucking Conditional Use Permit Request. Attached are the Original Staff Report and the Planning Commission Adopted report with Finding, Conditions and public Comment made at the Public Hearing relating to the CUP. The Planning Commission voted to approve the Conditional Use Findings and Conditions as outlined in the Adopted Planning Report.
Since the action taken by the Planning Commission it is noted that Condition Number #2 should be amended to allow two (2) years versus one (1) as that would match the Development Agreement that was executed pending final consideration of the CUP. Secondly, Willow Trucking has asked for reconsideration for Condition Four (#4) fencing.
“According to the builder, maintenance free fencing does not exceed 8’. Even at 8’, a maintenance free fence will not stand up well to the wind and snow weight and would require frequent/annual maintenance. A berm is not desired because of the cost and in conjunction with the setbacks and easements would eat up too much development space on the property (approximately 40’ for the berm alone).
It is anticipated that the existing grade along with the western boundary will be built up somewhat during construction so the 10’ can be made up by an increase in the grade and by a fence. Since the issue is noise and light, the building will provide substantial buffer with its 18’ sidewalls. Accordingly, Willow submits a counter proposal on fencing follows to replace in whole:
A fence or fence/fill shall be installed on the Western boundary of lot to reach a height of 10’ from the existing grade. The fence shall be impervious to view.
(a) Fence shall be constructed of corrugated colored steel to match the building, can be 2 toned to mimic the wainscoting look.
(b) Fencing shall meet at a minimum all setback requirements for fencing/buffers.
(c) Fence shall run North/South along the property line from the Northern edge of the building to 10’ north of the north line of the parking area.
Willow would also clarify that the restriction on refrigerator trucks is a per truck limit, as the trucks are started to meet cooling requirements of the FDA at multiple times during the day.
Below are the Conditions as recommended by the Planning Commission and with the revision relating to the utilization of the permit from one year to two year. The Council to consider Willow Express Counter offer as noted above and all other conditions.
1. This use may not be changed or expanded without amending CUP.
2. This permit must be utilized one (1) year from the date hereof or it shall terminate.
3. The Developer must furnish a final grading plan prior to issuing building permit.
4. 10 foot fence/berm from existing grade shall be installed on the Western boundary of lot constructed of maintenance free materials/or earthen material and be impervious to view.
a. Shall not be constructed of metal sheeting.
b. Fencing shall meet at a minimum all setback requirements for fencing/buffers.
c. Fence shall run North/South along property line from Southern edge of building to 10’ north of final parking lot.
5. All area lighting shall be directed towards ground and away from residential property.
6. Parking lot shall be constructed of durable material (example of durable material: class 5, granite chip, pavement, cement or other similar material).
7. If parking lot is constructed of durable material and creates dust, efforts are taken to mitigate dust via chemical or other application as needed twice annually. Between April 1-June 20 and second application within 90 days of June 20.
8. Refrigerator trucks running are not allowed to park in excess of 30 minutes and must be in transition and when doing so, they are to be facing away from western boundary of property and all reasonable efforts made to reduce noise within 55 feet of western property boundary.
Mayor Finken received comments from the public regarding their concerns of granting the Conditional Use Permit as well as comments heard during the Open Forum. Mayor Finken stated that the Planning and Zoning Commission held a Public Hearing and upon their review recommended the Council approve the Conditional Use Permit with the above mentioned conditions with the one change to one year utilization versus two years. However, two administrative extensions can granted by staff of 6 months a piece if required.
Mr. Thieschafer introduced Resolution No. 2016-29 Resolution Approving Case No. 2016-401 Conditional Use Permit (Cup) Requested By Willow Express For Properties Owned By The City Of Melrose To Allow Truck Transportation Company Use As Allowed By Cup (Operations And Maintenance Facility, Office And Possibly A Loading Dock) . The motion was seconded by Mr. Finken with a roll call vote recorded as follows: For: Council Members Thieschafer, Christenson, and Mayor Finken; Abstain: Council Member Klasen; Absent: Council Member Mayers.
Mayor Finken stated that WSB was contracted to develop a preliminary engineering and cost estimate for the Kraft Retaining Wall. A review has been completed and it has been determined that the retaining wall is not acceptably safe and has an unstable ratio for sliding. A number of items were proposed with the report. WSB will be in attendance at the meeting to discuss the report and present their proposal for final designs.
A motion was then made by Mr. Thieschafer authorizing WSB & Associates to develop formal plans and prepare bid documents. The motion was seconded by Mr. Christenson with a roll call vote recorded as follows: For: Council Members Thieschafer, Christenson, and Mayor Finken; Against: Council Member Klasen; Absent: Council Member Mayers.
Mayor Finken stated that the City wishes to inform the residents that any petitions requesting public improvements for the year of 2017 must be filed with the City Clerk no later than July 20, 2016. The petitions for improvements such as sanitary sewer, water mains, street, and curb and gutter will be given consideration for improvement in 2017.
Mayor Finken stated that the Department of Employment and Economic Development has funding available for Business Development Infrastructure. The City of Melrose has the legal authority to apply for financial assistance for the potential business development of BDP No. 08-08-2014A. The Council gave consideration to Local Government Resolution No. 2016-27 Business Development Infrastructure Application.
Mr. Christenson introduced Resolution No. 2016-27, Local Government Resolution No. 2016-27 Business Development Infrastructure Application. The motion was seconded by Mr. Klasen with a roll call vote recorded as follows: For: Council Member Christenson, Klasen, Thieschafer, and Mayor Finken; Against: None; Absent: Council Member Mayers.
Mayor Finken noted that at its June 13, 2016 meeting the Public Utilities Commission approved entering into a contract with PSN to provide services for a customer utility portal, as well as credit card processing. With these services, customers are able to pay their utility bills online, as well as at a terminal that will now be available at the front desk. The Commission also approved to absorb the fees, approximately at 2.15%, relating to the credit card processing as a cost of doing business, which is consistent with how most municipalities handled it.
The City now has the option to accept payments at City Hall as well, or online. We currently are using the vendor, Official Payments, and there is a transaction fee passed through to the consumer at about $5.95/transaction. Due to this, the usage is quite low.
If the City chooses to follow suite with the Utility Commission to absorb the fee, we believe it can be recovered in two primary ways. First, this may increase our collections processes, specifically for ambulance bills. As of May 31, 2016, there has been $14,030.78 in ambulance charge-offs, which is about 6% of the charges billed in that same time frame. Secondly, we can review and adjust the fee schedule to cover some of the added cost in credit card payments. Staff recommends to limit the transaction charge amount to $1,000 if the City chooses to coincide with the Utility and absorb the fee.
A motion was made by Mr. Thieschafer seconded by Mr. Klasen and unanimously carried authorizing staff to enter into an agreement with PSN to accept credit card payments.
A motion was then made by Mr. Klasen, seconded by Mr. Christenson and unanimously carried to absorb the credit card processing fee.
A motion was made by Mr. Thieschafer, seconded by Mr. Klasen and unanimously carried limiting the transactions to a maximum of $1,000.
The following informational items were reviewed:
• Charter, is pleased to inform Melrose of two new HD channel additions to your community line-up taking effect on or after August 2, 2016. The new channels, Olympic Basketball channel 494 and Olympic Soccer channel 495 will be temporary HD channels with dedicated overflow Olympic content. Olympic Basketball and Olympic Soccer will be added to the Sports Neighborhood tier of your community line-up.
• Charter Communications customers in your community are already receiving information regarding this new addition. If you have any questions related to this change, please do not hesitate to contact me at 952-367-4233 or via email at leeann.herrera@charter.com.
The following is a list of upcoming schools and conferences: 1) TIF Training July 20. Attending: Finance Director Tessa Beuning and Community Development Director Mike Creelman.
• The minutes from the Utilities Commission’s June 13 Regular.
A motion was made by Mr. Thieschafer seconded by Mr. Klasen and unanimously carried that the meeting be adjourned at 8:45 p.m.
Patricia Haase, City Clerk