The Melrose City Council met in a Regular Meeting on Thursday, November 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 Klasen, Dick Christenson, Josh Thieschafer, and Mayor Joe Finken, City Administrator Michael Brethorst, Planning and Development Director Mike Creelman and City Clerk Patti 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 amended.
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 Council’s September 15 Regular Meeting and the October 20 Regular Meeting.
b. list of bills in the amount of $493,521.76. (See attached list)
c. list of investments for the month of October.
d. Donation Resolution No. 2016-45, donation from Jennie-O-Turkey Store in the amount of $1,500 to the Melrose Fire Department.
e. EMT Shannon Budeau has submitted her letter of resignation from the Ambulance Department effective October 1, 2016. She has served on the Department for five years.
A motion was made by Ms. Mayers, seconded by Mr. Klasen and unanimously carried to approve the Consent Agenda items.
Mayor Finken opened the Public Hearing at 6:09 p.m. to abate nuisances pursuant to Melrose City Code Section 93.21 on the following properties:
1. 518 4th Street SE, Melrose MN
2. 31 Rose Park SW, Melrose MN
3. 823 1st Street SE, Melrose MN
City Attorney Scott Dymoke reviewed the process to abate nuisances and presented the nuisance report and photographs of the nuisance violations.
Mr. Kraker inquired as to how many days he is allowed to complete the clean-up of his property. Mr. Dymoke noted that he would have 30 days from today’s date to come into compliance, should the Council authorize to move forward with the abatement process.
There being no further comment, the Public Hearing was closed at 6:19 p.m.
Mayor Finken then opened the next Public Hearing at 6:19 p.m. for the purpose of giving consideration to approval of the Annexation and Initial Zoning of the Joseph J. Eich and Melissa S. Engebretson property. The property is proposed to be annexed into the City to allow further Industrial Development.
Jason Ruess, Plant Manager of the Jennie-O Turkey Store, was present and provided a brief overview of the proposed new facility. He stated he would be willing to address any questions or concerns relating to the project.
Roger Paschke, a member of the Oak Hill Cemetery Committee, inquired as to if the building would be visible from the cemetery. Mr. Paschke also inquired about traffic flow and parking. The preliminary site plan was presented. Mr. Ruess thought there would be limited visibility of the plant from the cemetery; however, recommended that he and Mr. Paschke meet to further review after the final plans have been completed.
There being no further comment, the Public Hearing was closed at 6:32 p.m.
Planning and Development Director Mike Creelman provided an update on the Planning and Zoning Commission’s November 7 meeting. The Commission held Public Hearings on the Preliminary/Final Plat of Jennie-O Turkey Store, Rezoning of Parcel 66.36478.0510 owned by the City of Melrose from Future Development District to Industrial, and Application from Jennie-O Turkey Store for a Conditional Use Permit for Parcels 66.36478.0000, 66.36478.0510, and 21.12553.0000 Located at 1159 Main St. E Melrose allowing to build a new facility. The Commission also held a Public Hearing for the Conditional Use Permit requested by the Melrose Public Utilities allowing expanding the current east substation. The Council will be taking action on these requests later this evening. Mr. Creelman presented the Third Quarter Building Permit Report.
Finance Director Beuning presented the General Fund Financial Third Quarter Report. Ms. Beuning noted that the General Fund revenue is at 61% and expenditures are at 76%. At this point, only half of the property tax and half of the local government aid have been collected. MADA revenues have exceeded budget due to the early payoff of the GCI/Dynamic Investment loan resulting from the sale of the apartment building. Expenditures have also exceeded the budget due to business development costs that were not originally budgeted for. If/when the projects enact a TIF district, these costs can be recouped through the administrative fees captured by the tax increment revenues.
Ms. Beuning next reviewed the Debt Service Funds. Half of the debt levies have been received in June and July. All principal and interest payments have been made for 2016. The fire and ambulance rental payments will be made in December. There have also been increases in fiscal agent fees due to the required arbitrage reporting done in 2016.
Police Chief Craig Maus presented the Police Department’s October monthly report. He noted that for the month of October, there were 315 calls for service compared to 274 for October 2015. A total of 27 citations were written for the month of October. The year-to-date number of calls is 3,421 compared to 2,554 in 2015. For the month of October 2016, the Department received 33 agency assist calls. Chief Maus reminded residents that winter parking has gone into effect November 1 through April 1. Parking is prohibited in the Downtown Business District from 3:00 a.m. to 6:00 a.m. daily.
City Attorney Scott Dymoke reported on projects he has been working on for the City.
• Community Development, Jennie-O Turkey Store Project: Reviewed survey and preliminary development plans with City staff to identify potential zoning, subdivision, shoreland and utility issues. Prepared proposed ordinance to annex and rezone Eich property.
• Great River Regional Library (GRRL) Service Agreement: Reviewed revised draft of new service agreement with GRRL. Prepared and forwarded to City staff summary of costs and benefits of agreement to Melrose.
Following its review of the Planning Report, the related information and documents associated with the application for issuance of the Annexation and Initial Zoning, the Council gave consideration to accept the recommendation of the Planning and Zoning Commission on the application for Annexation and Initial Zoning to Industrial. The Annexation is received to accommodate a request by Joseph J. Eich and Melissa S. Engebretson.
Council Member Mayers made a motion adopting Ordinance No. 11-17-2016-1, An Ordinance Approving the Petition of Joseph J. Eich and Melissa S. Engebretson for the Annexation of Unplatted Land Not Exceeding 120 Acres to the City of Melrose, Under Minnesota Statutes Section 414.033, Subd. 2(3) contingent on Jennie-O Turkey Store executing the final Purchase Agreement and the agreed upon terms and conditions of electric service between Melrose Public Utilities Commission, Jennie-O Turkey Store and, if applicable, Stearns Electric. 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.
Administrator Brethorst also recommended the Council approve the Official Title and Summary for Ordinance No. 11-17-2016-1. This Official Title and Summary was published in lieu of the entire ordinance containing the amendments. Ordinance No. 11-17-2016-1 will be available at the Melrose City Center and at the Great River Regional Library, Melrose Branch. State Statute requires that approval of the Official Title and Summary by the Council must be by a 4/5 vote.
A motion was made by Mr. Klasen to adopt the Official Title and Summary for Ordinance No. 11-17-2016-1, An Ordinance Approving the Petition of Joseph J. Eich and Melissa S. Engebretson for the Annexation of Unplatted Land Not Exceeding 120 Acres to the City of Melrose, Under Minnesota Statutes Section 414.033, Subd. 2(3) The motion was seconded by Ms. Mayers with a roll call vote recorded as follows: For: Council Members Klasen, Mayers, Christenson, Thieschafer, and Mayor Finken; Against: None.
Planning and Development Director Creelman stated that at the Planning and Zoning Commission’s November 7 meeting, the Commission held a public hearing and recommends to the Council that the Jennie-O Turkey Store Preliminary Plat and Final Plat be approved. The application is received to accommodate a request submitted by Jennie-O Turkey Store, Inc. for the construction of a new facility.
A motion was made by Mr. Christenson, seconded by Mr. Thieschafer and unanimously carried adopting Resolution No. 2016-46, Approving Case No. 2016-1107 Application from Jennie-O Turkey Store to Allow Creation of a New Plat.
Planning and Development Director Creelman noted that at the Planning and Zoning Commission’s November 7 meeting, the Commission held a public hearing and recommends to the Council that the Jennie-O Turkey Store Conditional Use Permit (CUP) be approved. The CUP is received to accommodate a request submitted by Jennie-O Turkey Store, Inc. for the construction of a new facility.
A motion was made by Ms. Mayers, seconded by Mr. Klasen and unanimously carried adopting Resolution No. 2016-47, Resolution Approving Case No. 2016-1108 Application from Jennie-O Turkey Store to Allow the Construction of a New Facility contingent on Jennie-O Turkey Store executing the final Purchase Agreement.
Planning and Development Director Creelman stated that at the Planning and Zoning Commission’s November 7 meeting, the Commission held a public hearing for the purpose of giving consideration for an amendment to the City of Melrose Zoning Ordinance No. 1989-1-A, as amended, and adopted by reference as Chapter 153 of the City of Melrose Code of Ordinances to accommodate a request submitted by the City of Melrose in behalf of Jennie-O Turkey for the rezoning of Parcel 66.36478.0510. The submitted request is to rezone said parcel from Future Development District to Industrial. This proposed rezoning is a result of Minnesota State Statutes in that cities must allow industrial uses within a City. This request is needed in order for Jennie-O Turkey Store to construct new industrial processing facility.
Council Member Christenson made a motion to adopt Ordinance No. 11-17-2016-2, An Ordinance Amending City of Melrose Zoning Ordinance No. 1989-1-A, As Amended, and Adopted by Reference as Chapter 153 of the City of Melrose Code of Ordinances to Rezone Parcel No. 66.36478.0510 Owned by the City of Melrose from FDD, Future Development District to I, Industry contingent upon Jennie-O Turkey Store executing the final Purchase Agreement. The motion was seconded by Mr. Thieschafer with a roll call vote recorded as follows: For: Council Members Christenson, Thieschafer, Mayers, Klasen, and Mayor Finken; Against: None.
Mayor Finken stated that the Melrose Public Utilities is in need of acquiring land for the expansion of the East Substation to support the future and potential growth of Melrose. It is the intent of the Commission to begin work on this substation on or about May 1, 2017. A complete review of alternative sites has occurred as well as cost estimates to consider alternate options.
These options included upgrading electric feeders from the West Substation to the growth areas. This option was excluded due to loss in voltage and line loss. A second option of encroaching the residential neighbors was also explored; however, this is not preferred as it would disrupt neighbors plus, the cost for additional larger bus works would increase the costs. So the preferred option is to secure right-of-way from the State.
The State of Minnesota is willing to sell the property to the City. A survey and an appraisal will be conducted of the site to determine proper legal description and cost of the land. The State of Minnesota will be holding public hearing on the sale of the property to address any and all public concerns.
The Comprehensive Plan addresses growth of industrial property and states that expansion is desired when it is consistent with the neighborhood. The parcel is immediately adjacent to the industrial and it is adjacent to industrial property across the trail as well. The Planning and Zoning Commission has reviewed this and consents to the purchase. The price for the land is yet to be determined. The amount of land is less than 1 acre with the cost for this land purchase would be paid for by the Utilities.
A motion was made by Mr. Christenson, seconded by Mr. Klasen and unanimously carried approving the land purchase if the Utilities is allowed to purchase from the State.
Planning and Development Director Creelman stated that at the Planning and Zoning Commission’s November 7 meeting, the Commission held a public hearing and recommends to the Council that the Conditional Use Permit (CUP) Application from the Melrose Public Utilities be approved. The CUP is received to accommodate a request submitted by Melrose Public Utilities for the expansion of the East Substation.
A motion was made by Mr. Thieschafer, seconded by Mr. Christenson and unanimously carried adopting Resolution No. 2016-48, Resolution Approving Case No. 2016-1109, Conditional Use Permit Application from the Melrose Public Utilities Commission to Allow the Expansion of the East Substation.
Mayor Finken noted that this past year, the Fire Department was involved in an accident on I-94 which lead to the loss of a pumper truck. The pumper truck has now been replaced and is in operation. The League of Minnesota (LMC) has led all processes for the recovery of any and all damages for the loss. The Council has two options available to consider: Option 1 is to accept the liability payment from the person involved; and Option 2 is to pursue legal action to recover the remaining amount.
A complete review by the LMC and City staff and looking at the amount of possible recovery and the likelihood of the amount to recover, it is recommended to follow Option 1.
A motion was made by Mr. Thieschafer to accept claim payment and close the case. The motion was seconded by Ms. Mayers with a roll call vote recorded as follows: For: Council Members Thieschafer, Mayers, Christenson, Klasen, and Mayor Finken; Against: None.
Mayor Finken noted that with the change in staffing at the City of Melrose/Melrose Public Utilities, staff is updating banking records at our designated depositories. Staff is recommending the following positions have depositing and withdrawal authority:
• City Administrator
• Finance Director
• Accounting Clerk
• Office Assistant I
• Office Assistant II
The City Administrator and Finance Director shall remain the sole agents able to open or close accounts in the name of the City/Melrose Public Utilities.
A motion was made by Mr. Klasen authorizing staff to update banking account designations; however, authorizing only the City Administrator and Finance Director as sole agents authorized for making withdrawals, and opening or closing accounts. The motion was seconded by Mr. Thieschafer with a roll call vote recorded as follows: For: Council Members Klasen, Thieschafer, Christenson, Mayers, and Mayor Finken; Against: None.
Mayor Finken stated that the City has contracted with Arvig to video the Council’s regular meetings. The term for this contract is set to expire on December 31, 2016. Arvig has submitted a quote for services. They propose to provide video recording once per month, provide DVD copy of the meeting, re-broadcast Council meetings on Arvig’s local channel, and upload Council meetings to the City’s YouTube Account. The contract is set at $300 per month and shall expire on December 31, 2019. The contract allows for a one-year extension if notice of termination is not received. The rate would remain the same for the three-year contract. The current contract is $250 per month.
A motion was made by Ms. Mayers to approve entering into the Filming and Production Agreement with Arvig. The motion was seconded by Mr. Christenson with a roll call vote recorded as follows: For: Council Members Mayers, Christenson, Thieschafer and Klasen; Against: None; Abstain: Mayor Joe Finken abstained due to a potential conflict of interest as he is employed by Arvig.
Mayor Finken stated that earlier this evening a Public Hearing was held to abate nuisances pursuant to Melrose City Code Section 93.21 on the following properties
1) 518 4th Street SE, Melrose MN
2) 31 Rose Park SW, Melrose MN
3) 823 1st Street SE, Melrose MN
City Attorney Dymoke stated that if the Council wishes to move forward with the abatement of the nuisance conditions for the above listed properties the Council will need to take action adopting the resolutions. In so doing, the property owner has 30 days in which to come into compliance with the applicable City codes and regulations. A motion for summary enforcement of the order will be made to the Stearns County District Court unless correction action is taken, or unless an answer is filed within the time specified in Minn. Stat. §463.18 which is 20 days. If the City must take action to enforce this order, all enforcement costs will be specially assessed against the property and collected in accordance with Minn. Stat. §463.22, §463.21 and §463.161.
Council Member Christenson introduced Resolution No. 2016-50, Resolution Ordering the Abatement of Nuisance Conditions Located at 518 Fourth Street SE, Melrose, MN. The motion was seconded by Mr. Thieschafer with a roll call vote recorded as follows: For: Council Members Christenson, Thieschafer, Mayers, Klasen, and Mayor Finken; Against: None.
Council Member Thieschafer introduced Resolution No. 2016-51, Resolution Ordering the Abatement of Nuisance Conditions Located at Lot 31, Rose Park, Melrose, MN. The motion was seconded by Mr. Christenson with a roll call vote recorded as follows: For: Council Members Thieschafer, Christenson, Mayers, Klasen, and Mayor Finken; Against: None.
Council Member Mayers introduced Resolution No. 2016-52, Resolution Ordering the Abatement of Nuisance Conditions Located at 823 First Street SE, Melrose, MN. The motion was seconded by Mr. Klasen with a roll call vote recorded as follows: For: Council Members Thieschafer, Christenson, Mayers, Klasen, and Mayor Finken; Against: None.
Mayor Finken stated that at the October 20 meeting, the Council authorized staff to seek bids for the replacement of the 2001 Ford Ambulance. Ambulance Coordinator Jenn Tschida has received a bid on a discounted ambulance. The vendor the City has worked with in the past had a model very similar in specs to ours started, which would afford the Ambulance Department a significant discount. Minnesota Statute 471.3455 allows for direct negotiation for public safety equipment, which allows us to not go out for sealed bids to take advantage of the offered discount. To do her due diligence, Ambulance Coordinator Tschida obtained an additional bid through the EMS Cooperative Purchase Program, which came in at $135,052 for the base model, compared to the recommended purchase of an Ultramedic III at a base price of $129,909.
With the needed customizations and net of the $17,000 discount, the total bid is $144,700 from Everest Emergency Vehicles.
A motion was made by Ms. Mayers, seconded by Mr. Christenson and unanimously carried approving the purchase of the 2017 Ultramedic Type 3 Ford at the price of $144,700.
Mayor Finken noted that the City has contracted with WSB Engineering to provide design and specifications for the replacement of the Kraft Retaining Wall. The concept was to construct and replace the Kraft Retaining Wall when the 5th Avenue NE Bridge project is underway. The guidance given to WSB was to design a step in slope rock slope retaining wall. This was based on a review of options that included keeping it the same, sheet piling, poured foundation walls, modification of both and a step and slope solution. Additional guidance was to design the wall to meet $250,000.
The original concept for the step and slope shows a grade of 3 to 1 in some areas; however, this was based on encroaching into the Sauk River. After consulting with the DNR, Army Corp of Engineers and WSB standards a 3 to 1 slope is not attainable in most areas of the wall. The concern is due to the regulatory guidelines when encroaching into the river. A no-rise plan must be submitted to the DNR when fill is placed into the river. The cost to encroach into the river would exceed the initial capital budget of $250,000. It is estimated to encroach into the river and develop a no-rise plan that will cost in excess of $30,000 – $45,000. This includes the nearly $10,000 FEMA application and fees associated to a no-rise letter of map revision. This estimate is based on the cost associated to the LOMR for the Wastewater Treatment Facility.
An alternate design has been created to eliminate the need to encroach into the river. The concern with this option is that the slope goes from a 3 to 1 in some areas to a 1 to 1 slope. Additionally, a rock slope is no longer an option and a grass slope would be needed. The design will have two steps in the plan with a width of approximately five feet versus 1 step. These steps are needed to allow for stability to the grade.
There are three options for the Council to consider.
1) Wait for final determination if the Melrose Multi-Family will be built or not. If it does not get built, the property line would be adjusted accordingly to allow for a 3 to 1 slope. If it does get built, continue with draft plan as presented.
2) Authorize WSB to develop a formal cost estimate to encroach into the river to include a no-rise letter of map revision. Coordinate with Stearns County bridge team to amend bridge plan to accommodate bridge impact as City cost.
3) Continue with the current plan as presented.
A motion was made by Mr. Thieschafer to table the design until after the Legislative Session pending the passing of the bonding bill inclusive of monies allocated for bridge reconstruction. The motion was seconded by Mr. Klasen with a roll call vote recorded as follows: For: Council Members Thieschafer, Klasen, Christenson, Mayers, and Mayor Finken; Against: None.
Mayor Finken stated that the City Election was held at the General Election on Tuesday, November 8, 2016, to vote on officers for two, four-year Council Member positions and the official returns of the judges of election were presented.
Mr. Christenson introduced Resolution No. 2016-49, A Resolution Canvassing the November 8, 2016 Municipal Election Returns and Declaring Results. (See attached resolution.) The motion was seconded by Ms. Mayers with a roll call vote recorded as follows: For: Council Members Christenson, Mayers, Thieschafer, Klasen, and Mayor Finken; Against: None.
Mayor Finken noted that the City has been approved to submit a full application for a TAP Grant for Trails. The funding would become available in 2021. The route presented for funding was part of the City’s Master Trails Plan. The estimated cost for the project is $147,130, of which the City would pledge 20% ($29,426). These funds would come from the City’s Parks and Trails Budget in 2021. A sponsorship resolution is required Stearns County for this application.
The City has approached the School to participate in the TAP grant pre-application. A request would be submitted to the School for them to partner with the City to complete the trail going east / west of the school property. Their portion of the trail network would cost $224,800 and would be required to pledge 20% ($44,960).
Council Member Christenson stated that due to the fact that funding does not become available until 2021, he believes that the project could be completed sooner and for a fraction of the cost if City would spearhead the trail project. The community could help finance the project through fundraising efforts. Council Member Thieschafer concurred.
After further discussion, a motion was made by Mr. Thieschafer seconded by Ms. Mayers and unanimously carried not to make application for the TAP Grant
The following informational items were then reviewed:
The City of Melrose/Melrose Public Utilities completed a Comprehensive Annual financial Report for the year ended December 31, 2015. This is the highest form of recognition for governmental accounting and financial reporting. Our report was submitted for review and the City/Melrose Public Utilities was awarded the Award of Financial Reporting Achievement.
Utilities Commission’s October 10 Regular Meeting minutes.
A motion was made by Mr. Thieschafer, seconded by Ms. Mayers and unanimously carried that the meeting be adjourned at 8:00 p.m.
Patricia Haase, City Clerk