Melrose City • March 17, 2016

The Melrose City Council met in a Regular Meeting on Thursday, March 17, 2016 at 6:00 p.m. at the Melrose City Center pursuant to due notice being given thereof. Present were Council Members Jenny Mayers, Tony Klassen, Dick Christenson, Josh Thieschafer and Mayor Joe Finken, City Administrator/Treasurer Michael Brethorst and City Clerk Patti Haase. Mayor Finken presided thereat. Also in attendance were American Government students from the Melrose Area Public High School. The Council then recited the Pledge of Allegiance.
A motion was made by Ms. Mayers, seconded by Mr. Christenson and unanimously carried to approve the agenda as amended.
Council Member Josh Thieschafer expressed his gratitude to the surrounding communities fire departments, the Melrose Fire Department, Police Department, EMTs and to all those who helped in any way with fire fighting efforts of St. Mary’s Church.
Mayor Joe Finken recalled the devastation to the community when the old Kraft Plant burnt down several years ago and how the recent fire at St. Mary’s has impacted the entire community. He thanked all of the Fire and Rescue Departments, and those who offered support through acts of kindness, prayers and or donations. Mr. Finken noted that the City of Melrose is a community that comes together in times like this and asks for the community’s continued support in helping rebuild this historic and beautiful church.
a. the minutes from the Council’s January 7 Special Joint Meeting with the Commission, Council’s January 21 Special Joint Meeting with the Commission, the January 25 Special Joint Meeting with the Commission a Continuation of the January 21 Meeting, the February 9 German Student Visit Meeting, the February 18 Special Joint Meeting with the Commission, the February 18 Regular Meeting, and the February 18 Special Meeting with Area City and Township Meeting.
b. List of bills in the amount of $244,695.89.
c. List of investments for the month of February
d. EMT Jeremy Vearrier has requested a leave of absence from the Ambulance Department. He is currently working out of the state however plans to rejoin the Department once back in the state.
A motion was made by Mr. Thieschafer, seconded by Mr. Klassen and unanimously carried to approve the Consent Agenda.
a. Mayor Finken stated that Utility Billing Clerk Rosie Athmann retired on March 4, 2016. She has worked for the City for 38 years. Mayor Finken presented Ms. Athmann with a retirement memento in recognition of the City’s appreciation of her dedicated service.
b. Mayor Finken presented a Certificate to Melrose Gymnast Greta Klaphake, 2016 Minnesota State High School Class A Vault Champion.
a. Police Chief Craig Maus presented the Police Department’s February report. He noted there were 315 calls for service during that month, compared to 220 for February 2015. A total of 17 citations were written for the month of February 2016. The year-to-date number of calls is 651 compared to 427 in 2015. For the month of February 2016, the Department received 26 agency assist calls.
b. City Attorney Scott Dymoke reported on projects he has been working on for the City:
• Community Development: Worked with city staff on structure and terms of agreements with Developers interested in several sites within Melrose. Identified planning and zoning issues raised by proposed developments and prepared summarizes for city staff.
• The City has been named in a law suit filed against the owner of Rose Park/Melrose Community LLC.
a. Mayor Finken then opened the Public Hearing at 6:15 p.m. The Council held a Public Hearing on a proposal that the City of St. Cloud, Minnesota (the “Issuer”) issue revenue bonds (the “Bonds”) on behalf of CentraCare Health System, a Minnesota nonprofit corporation and its nonprofit affiliates (the “Corporation”), in one or more series pursuant to Minnesota Statutes, Chapter 462C and Sections 469.152 to 469.165, in an amount not to exceed $275,000,000, for the purpose of, among others (i) financing all or a portion of the costs of acquisition, construction and equipping of a medical campus and ancillary facilities located at 525 West Main Street in the City and (ii) refunding a portion of the Issuer’s Health Care Revenue Bonds, Series 2010A (CentraCare Health System) issued on behalf of the Corporation (the “Refunded Bonds”). A portion of the proceeds of the Refunded Bonds were used to refinance the Issuer’s Health Care Revenue Bonds (“The Saint Cloud Hospital Obligated Group), Series 2000-A, the proceeds of which were used in part to finance the remodeling, improvement and equipping of the Melrose Area Hospital, CentraCare Clinic – Melrose, and Pine Villa Care Center located at 11 North 5th Avenue West and 525 West Main in the City (the “Facilities”). The Facilities are operated by CentraCare Health System – Melrose, an affiliate of the Corporation. The Bonds will not be issued by the City of Melrose. City Administrator Brethorst presented the Affidavit of Publication of the hearing notice which was published. Gerry Gilbertson Administrator of CentraCare Health Systems Melrose noted that CentraCare plans to issue some debt through the City of St. Cloud to finance and refinance projects in the region, including Melrose. In order to satisfy state and federal law, CentraCare needs the consent of the City of Melrose for issuance. On another note Mr. Gilbertson stated that they anticipate CentraCare Corporate to approve the CentraCare Health Systems – Melrose expansion with ground breaking to take place June of 2016.
No further comments were forthcoming. The Public Hearing was closed at 6:20 p.m.
a. Mayor Finken noted that earlier this evening, the Council held a Public Hearing on a proposal that the City of St. Cloud, Minnesota (the “Issuer”) issue revenue bonds (the “Bonds”) on behalf of CentraCare Health System, a Minnesota nonprofit corporation and its nonprofit affiliates (the “Corporation”), in one or more series pursuant to Minnesota Statutes, Chapter 462C and Sections 469.152 to 469.165, in an amount not to exceed $275,000,000, for the purpose of, among others (i) financing all or a portion of the costs of acquisition, construction and equipping of a medical campus and ancillary facilities located at 525 West Main Street in the City and (ii) refunding a portion of the Issuer’s Health Care Revenue Bonds, Series 2010A (CentraCare Health System) issued on behalf of the Corporation (the “Refunded Bonds”). A portion of the proceeds of the Refunded Bonds were used to refinance the Issuer’s Health Care Revenue Bonds (“The Saint Cloud Hospital Obligated Group), Series 2000-A, the proceeds of which were used in part to finance the remodeling, improvement and equipping of the Melrose Area Hospital, CentraCare Clinic – Melrose, and Pine Villa Care Center located at 11 North 5th Avenue West and 525 West Main in the City (the “Facilities”). The Facilities are operated by CentraCare Health System – Melrose, an affiliate of the Corporation. The Bonds will not be issued by the City of Melrose
Ms. Mayers introduced Resolution No. 2016-9, Resolution Approving the Issuance of Bonds by the City of St. Cloud, Minnesota, on Behalf of CentraCare Health System Under Minnesota Statutes, Sections 469.152 to 469.165 and Chapter 462C. The motion was seconded by Mr. Klasen with a roll call vote recorded as follows: For: Council Members Mayers, Klasen, Christenson, Thieschafer, and Mayor Finken; Against: None.
b. The Council next gave consideration to adopting the Bureau of Criminal Apprehension’s (BCA) new master Joint Powers Agreement (JPA). By law, (Minn. Stat. § 471.59, Subd.1) the JPA must be approved by the city council. The purpose of this Agreement is to create a method by which the Agency has access to those systems and tools for which it has eligibility, and to memorialize the requirements to obtain access and the limitations on the access. The computer lines are already in place therefore there should be no additional cost to the city at this time. The Melrose Police Department will utilize this system for e-complaints.
A motion was made by Mr. Klasen seconded by Mr. Thieschafer and unanimously carried adopting Resolution No. 2016-8, and entering into the State of Minnesota Joint Powers Agreement Criminal Justice Agency.
c. The Council gave consideration to approving the quote received from the League of Minnesota Cities Insurance Trust (LMCIT) for worker’s compensation insurance for the period of March 7, 2016 through March 7, 2017. The net premium costs for the upcoming period are $73,985. The quote in 2015 was $44,377, which is an increase of 67%. The experience modification increased to 1.05% for the 2016-2017 coverage period, up from .67% for the 2015-2016 coverage period. Per conversation with the underwriting technician with LMCIT, they use a three year history to determine that percentage. For the prior year premium, years 2011, 2012, and 2013 were used. For the 2016-17 quote, 2012-2014 were used, and the City had a lot of claims for 2014 causing the sharp increase. It is recommended that the City again approve the regular premium option.
The General Fund share of the premium is $51,153 and the Utilities’ share is $22,832 (compared to $28,845 and $15,532, respectively for the past year).
The Utilities Commission approved the workers comp insurance renewal quote from LMCIT in the amount of $73,985 at its March 14 meeting.
A motion was made by Mr. Christenson, seconded by Mr. Klasen and unanimously carried concurring with the Public Utilities Commission approving the worker’s compensation insurance renewal quote from LMCIT in the amount of $73,985.
d. Mayor Finken stated, Marlene Klasen has served on the board since June of 2003 has tendered her resignation. The HRA Board is forwarding the recommendation of Rachel Dymoke for Council consideration for appointment to the HRA Board filling the vacancy left with the resignation of Ms. Klasen. The Council to give consideration adopting Resolution No. 2016-10 Resolution Approving Appointment to the Housing and Redevelopment Authority of the City of Melrose, Minnesota. Mayor Finken thanked Marlene Klasen and commended her for her years of service.
Ms. Mayers introduced Resolution No. 2016-10, Resolution of Appointment to the Melrose Housing and Redevelopment Authority, appointing Rachel Dymoke to the HRA Board filling the vacancy left with the resignation of Ms. Klasen. The motion was seconded by Mr. Thieschafer with a roll call vote recorded as follows: For: Council Members Mayers, Thieschafer, Christenson, Klasen, and Mayor Finken; Against: None.
e. Mayor Finken stated that the City of Melrose as of February 9, 2005 has entered into a First Right of Refusal for properties located: Lot 6, Block 1, Melrose Industrial Park. Within the agreement, it states that if the property owner receives an acceptable bona fide offer to purchase the property, they shall give the City notice. The City shall respond within 20 days after receipt. Notice was provided on March 17, 2016 on an acceptable bona fide offer to purchase the property. A final purchase agreement has yet to be signed, however, the purchaser and seller have requested that the City waive its First Right of refusal to the property and waive its 20 day notice and its survival rights. Both parties would like to close shortly and have asked that the City release its rights to allow for a timely closing.
A motion was made by Mr. Thieschafer seconded by Mr. Klasen and unanimously carried authorizing the City of Melrose to release all rights as outlined in the Rights of First Refusal dated February 9, 2005 and authorizes the Mayor and City Clerk to sign legal documents pending consent by City Attorney Dymoke and City Administrator Brethorst.
a. Mayor Finken stated that bids for the 2016 Bituminous Chip Seal were received on Wednesday, March 9, 2016. A total of four bids were received. The bids were checked for mathematical accuracy and tabulation. The Engineer’s Estimate was $73,547.50. The low bidder is Asphalt Surface Technologies Corporation (ASTECH Corp.), St. Cloud, MN, in the amount of $47,644.16. WSB & Associates is recommending awarding the contract to ASTECH Corp.., based on the results of the bids received.
In addition to the quoted services, a Change Order will be needed to allow for Chip sealing of the Parking Lot at the Fire Hall and Kraft Drive in Front of Fire / Ambulance Station. ASTECH has agreed to honor the per/unit pricing.
A motion was made by Mr. Christenson seconded by Ms. Mayers and unanimously carried awarding the contract to ASTECH Corp. and authorizing the Change Order to allow for Chip Sealing of the parking lot at the Fire/Ambulance Station and Kraft Drive in front of the Fire/Ambulance Station at the unit pricing quoted in the original bid.
b. Mayor Finken stated that the City of Melrose has been exploring the possibility of a Splash Pad since 2011. This includes a formal engineered estimate by WSB & Associates for the Master Parks Plan for the Sauk River Park including a Splash Pad in 2012. In 2014, efforts were made again to explore and develop true costs for a Splash Pad. Most recently the Parks Board developed of Request for Proposal for a Design Build for a Splash Pad. The City Parks Board has been exploring options and developing possible solutions and locations. Below is time line of events relating to the Splash Pad since the inception of the Parks Board.
Splash Pad – Time Line
1. Parks Board, May 27, 2014
a. Table splash pad tabled till a later date
2. Council, July 17, 2014
b. Discontinue Splash Pad and table hockey rink / skate park
3. Council, August 21, 2014
c. Open Forum – Bri Worms presented a petition of 200 plus names to reconsider Splash Pad. Council directed that item be discussed further by Parks Board
4. Parks Board, August 26, 2014
d. Direct subcommittee to explore cost estimate and design option
5. Parks Board, October 1, 2014
e. Splash Pad Added to 5 year Plan (no set time frame)
f. Provided several locations and rough estimates.
6. Parks Board, Dec. 18, 2014
g. Review costs and concepts
h. Table discussion till March 2016 to allow for Board Appointments
7. Parks Board, Jan 21, 2105
i. Initial Planning Efforts for funding allocation for Parks Department Golf Outing was designated by consensus to the Parks and Trails Improvement Fund.
8. Parks Board, March 10, 2015
j. Determined best location to be Sauk River Park
9. Parks Board, July 13, 2015
k. Directed that Soil Boring be conducted
l. Board recommended that funding share be 1/3, 1/3, 1/3 not to exceed $175K (Parks Fund, Fund Raising, City General)
10. Council, August 13, 2015
m. Adopted 5 year capital plan with Splash Pad (estimate total cost $250K, City share at $125K / 50%)
11. Parks Board, August 27, 2015
n. Directed Splash Pad Subcommittee to begin fund raising to begin while pending final need.
12. Council, September 17, 2015
o. Authorize funding raising by subcommittee to start fund raising
13. Parks Board, October 13, 2015
p. Developed Time lines
q. Determined that 2013, 2014, 2015 fund raising Efforts to be allocated 50% Parks Funds Share and 50% Community Fund Raising Efforts ($10,245.76 Parks / $10,245.77 Community Fund Raising)
14. Parks Board, November 16, 2015
r. Develop RFP and Final Design (Not to exceed $175K)
15. Parks Board, February 22, 2016
s. Finalized RFP concept and forward to Council
The Council is to provide consideration to amend or adopt the Request for Proposal as presented and Provide consideration to determine cost share / funding by % not and not to exceed amounts.
Mr. Thieschafer stated that the Parks and Recreation Board has reviewed and approved the splash pad design and recommends that Council approve submitting the RFP so as to at the very least obtain costs. Mr. Klasen questioned if a majority of the community supports the splash pad and suggested that a committee be formed to raise the money for the splash pad. Mr. Klasen stated that he believes that pride of ownership results in a better product. Although he believes it would be a nice addition to the community he would like to see it funded through donations rather than tax payers money. Ms. Mayers agreed with Mr. Klasen that there needs to be community involvement, however she is supportive of seeking quotes on the splash pad.
After further discussion a motion was made by Mr. Thieschafer for staff to submit the RFP on the splash pad design as presented and solicit quotes. The motion was seconded by Mr. Christenson with a roll call vote recorded as follows: For: Council Members Thieschafer, Christenson, Mayers, and Mayor Finken; Against: Council Member Klasen,
c. Mayor Finken noted as per the direction of the City Council and Public Utilities Commission, the City was to seek a proposal and develop a scope of work for the Construction Management of the 5th Avenue NE/CSAH 13 Bridge. Attached is proposal for the construction services related to the City/Utilities portion of the 5th Avenue NE/CSAH 13 Bridge Project Scheduled for 2017.
At this time it is WSB’s understanding that the County will complete as much of the construction observation as possible with their staff. The hours included with the proposal are an estimate at this time. Any further clarification by the county may require an adjustment in this proposal.
This is shared cost between the City and Utilities. Based on design estimates for the bridge, excluding Mehr property acquisition and demolition of $457,289.80. which is $213,339.80 City Roadway and $243,950 Utilities. 47% City and 53% Utilities.
Mike Nielsen with WSB & Associates noted that the quote was provided as an estimate only as a full scope of the project has not been completed. He is recommending that the City Council postpone entering into the contract until the scope of the City/County portion of the project has been completed.
The Council by consensus tabled action on the contract however did approve WSB & Associates as the Engineering firm for the project.
d. Deleted
a. Mayor Finken noted that the Council and Commission will meet on Thursday, April 21, 2016 at 5:00 p.m. to receive the 2015 Audit Report and Auditor’s Management Letter. A motion was made by Ms. Mayers seconded by Mr. Klasen and unanimously carried scheduling the Special Joint Meeting with the Public Utilities Commission to receive the 2015 Audit Report and Auditors Management Letter for Thursday, April 21, 2016 at 5:00 p.m.
b. Mayor Finken stated that the Melrose Area Ambulance is in need of new technology to provide adequate and consistent chest compression during CPR. It has become a standard that rural EMS have this resource for their use. They are also in use at the area Hospitals and Emergency Rooms. Efforts have been made secure a second quote for the purchase of the Lucas. However, there is only one vender that sells this product. Our initial estimates were $15,000 per unit without accessories. With this quote, we are able secure three (3) LUCAS’s plus accessories for $13,828.50 each. The funds to pay for this will come from Capital Reserves of the Melrose Area Ambulance. Ambulance Coordinator Jenn Tschida stated that Dr. Bretta with CentraCare Health Systems Melrose is in support of the ambulance department obtaining the LUCAS devices. Ms. Tshcida noted several advantages of the LUCAS’s.
A motion was made by Mr. Klasen, seconded by Ms. Mayers and unanimously carried approving the purchase of the equipment.
The following informational items were discussed:
a. Correspondence from the Initiative Foundation thanking the City of Melrose and the Melrose Public Utilities Commission for supporting the Initiative Foundation’s mission and activities with the donation of $1,600.
b. Utilities Commission’s February 8 Regular Meeting minutes.
c. Correspondence from Charter Communications
d. Thank You Note from Community Education Director Stacey Austing-Jacobson.
e. Council Member Mayers passed along Thank you to Parks/Street Department Supervisor and staff for their dedication to snow removal and keeping the streets clean.
A motion was made by Mr. Klasen, seconded by Mr. Thieschafer and unanimously carried that the meeting be adjourned at 7:00 p.m.
Patricia Haase, City Clerk