The Melrose City Council met in a Regular Meeting on Thursday, November 19, 2015 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, Mayor Joe Finken, City Administrator Michael Brethorst, and City Clerk Patti Haase. Council Member Josh Thieschafer was absent. Mayor Finken presided thereat. The Council then recited the Pledge of Allegiance.
A motion was made by Mr. Christenson, seconded by Mr. Klasen 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 October 15 Regular Meeting.
b. list of bills in the amount of $519,213.99 (See attached list)
c. list of investments for the month of October (See attached list)
d. Donation Resolutions: 1) Resolution No. 2015-48: Donation in the amount of $6,000 from the Melrose Lions towards the Melrose Fire Department
2) Resolution No. 2015-49: Donation in the amount of $3,334 from the Melrose Lions which is the third and final payment of their 2013 commitment of $10,000 to the Melrose Ambulance Department
e. Part-time Police Officer Matt Moorman completed the FTE of 2080 hours on October 16. Police Chief Maus conducted a review and it is favorable, therefore, recommends approval of a step increase from Start ($21.05/hour) to Step 1 ($22.10/hour).
The Council to give approval to Mr. Moorman’s step increase.
f. Abdo, Eick and Meyer Engagement Letter for Auditing Services: The Council to give consideration approving the Letter of Engagement for Abdo, Eick & Meyers to perform the fiscal year 2015 annual audit.
g. Springsted Contract for continuing disclosure services: The Council to give consideration to contract with Springsted to complete the required continuing disclosure reports for the City’s bonds.
A motion was made by Mr. Klasen, seconded by Ms. Mayers and unanimously carried to approve the Consent Agenda items.
a. Planning and Development Director Walz reported on the Commission’s October 19 Regular Meeting. Director Walz reported that at its October meeting, the Commission reviewed the following revised sections of the proposed updated zoning ordinance: 234, 300, 600, 700, 1000, 1300, 1600, 1700-1, and 1700-2. These sections were subsequently submitted to the Council and City Attorney Scott Dymoke for review about October 27, 2015. The public hearings on the updated zoning ordinance and several associated re-zonings and related conditional use permits required by the proposed changes to the ordinance are scheduled to be held at the Commission’s December 7 meeting followed by Council approval that same month.
The Council by consensus concurred with the Planning and Zoning Commission updates to the zoning ordinance. Administrator Brethorst noted that the Melrose Area Chamber has request a change to sign usage in C-1 Commercial allowing one cross street banner over the street. This change request will be reviewed by the Planning and Zoning Commission at its December meeting.
b. Finance Director Beuning presented the General Fund Financial Third Quarter Report. Ms. Beuning noted that the General Fund Revenues are at 54% and the expenditures are at 62%. Revenues are low because the second half of LGA and property taxes are not received until December. Property tax and LGA make up 73.5% of the Revenue Budget. The Ambulance Department Revenue is at 93% and the Expenditures are at 34%. The Fire Department Revenue is at 22% however this is due to 90% of the budgeted revenue comes from the Fire Contract charges from the townships and cities contribution and is not collected until December. The Fire Department has adequate reserve funds to meet operational costs until the contract revenue is received.
c. Police Chief Craig Maus presented the Police Department’s October report. He noted there were 274 calls for service during that month compared to 276 for October 2014. A total of twenty-five citations were written for the month of October. There were 92 verbal warnings and 1 written warning. The year-to-date number of calls is 2554 compared to 2342 in 2014. For the month of October 2015, the Department received 22 agency assist calls. Chief Maus noted that the police department will be focusing on the few properties who have not addressed the nuisance order requiring re-shingling. Chief Maus also noted that the Police Department may be purchasing some fitness equipment prior to yearend.
d. City Attorney Scott Dymoke reported on projects he has been working on for the City.
• Zoning Ordinance Amendments: Reviewed drafts of proposed amendments to City zoning ordinance and forwarded comments and recommendations to city staff.
• Ordinance Violation: Reviewed reports from city staff concerning a violation of city ordinance regulations Prepared and served notice of violation on property owner.
a. Mayor Finken stated that as approved by the Council and Commission, an internal posting was done for the Streets/Parks and Water/Wastewater Maintenance Worker position being vacated by Ron Tieman in December. This position is being changed from a fulltime position to a three-quarter time position up to 1600 hours per year. Allen Wolbeck, current seasonal maintenance worker for the City of Melrose has submitted a letter of interest for this position.
Staff is recommending approval of the hire of Mr. Wolbeck at the start rate of pay on the pay scale. Mr. Wolbeck has worked a total of 663.50 hours in 2014 and 2015 as seasonal maintenance worker.
A motion was made by Mr. Christenson, seconded by Ms. Mayers and unanimously carried concurring with the Public Utilities Commission approving the hire of Mr. Wolbeck as a part-time Streets/Parks and Water/Wastewater Maintenance Worker at the starting wage per hour.
b. Mayor Finken noted that according to the Fire Department Policies, Officers’ terms expire every two years. The terms will expire on January 1, 2016; therefore, applications for Chief, 1st Assistant Chief, 2nd Assistant Chief, and Training Officer were accepted through October 15.
One application was received for the Fire Chief position, which is from current Chief Jeremy Kraemer. Because he is the only applicant and currently serving in this capacity, no interview was necessary.
A motion was made by Ms. Mayers seconded by Mr. Klasen and unanimously carried appointing Jeremy Kraemer as the Fire Chief for 2016- 2017.
Six applications were received for the two Assistant Chief positions and two applications were received for the Training Officer position. Interviews for the Assistant Chiefs and Training Officer were conducted by the Fire Chief and Executive Fire Relief Association Executive Committee Members. They are recommending: Tom Budde be appointed as 1st Assistant Chief; Leon Feldewerd as 2nd Assistant Chief; Aaron Goebel as Training Officer.
A motion was made by Mr. Klasen seconded by Mr. Christenson and unanimously carried approving the Officer appointments for 2016 and 2017.
c. Mayor Finken stated that the City is under contract with Jane Brown to provide planning services. The Contract is due to expire November 20, 2015. There is a need to retain the services through the final adoption and compilation of the Ordinance. A three week extension is requested to complete these tasks. Once this contract is complete, staff will be looking for additional support for another 90 day period. These options will be presented at the December meeting.
A motion was made by Ms. Mayers seconded by Mr. Christenson and unanimously carried approving the amendment to the Planning and Zoning Service Contract.
d. Mayor Finken noted that the City Council at its October 2015 Council meeting formed a Subcommittee to determine and negotiate a final pay Request for the design work of the 5th Ave Bridge. The original request for payment was in the amount of $114,729. After much discussion, compromise and debate, the Committee and WSB have agreed upon a requested amount of $40,425. The Committee therefore recommends to the City Council to authorize payment to WSB & Associates in the amount of $40,425 for the final pay request of the 5th Ave/ CSAH 13 Bridge design. This was based on work performed, mutual understanding and comparable worth performed for Stearns County.
A motion was made by Mr. Klasen seconded by Ms. Mayers and unanimously carried approving the negotiated WSB 5th Ave/CSAH 13 Bridge Final Pay Request in the amount of $40,425.
e. Mayor Finken noted that the Sauk River Park is in need of safety improvements for the crossing of the “spill way” between the Old Fish Rearing Pond and the Sauk River. This is same location of our “snowmobile route” through the park. The current route directs people away from the spillway and onto the rearing pond with thin ice signs posted and danger signs as well. This is an issue that has been looked at by staff for some time now.
Efforts were looked at to install a culvert in the area and then provide fill over the top of the culvert. However, due to the flow of the spillway in times of high flow, a culvert has been deemed impractical and not able to meet the flow. Alternate means were explored and it was determined that the best solution would be a bridge over the crossing site. This alternate was found locally in Sauk Centre, being a used 40 foot long Rail Road Bridge. The cost for the bridge actual bridge is $3,000. Talk Inc. from Sauk Centre would also transport the 18,000 lbs bridge to the site.
Due to the time of year, it would need to be installed within the next two weeks to avoid freezing. It is recommended to move forward with the installation of the Bridge to eliminate the crossing hazard. The secondary benefit of the bridge would to be formally create a safe trail connecting the trail on the north side of the spillway. Therefore a cost share is proposed to cover the project.
Bridge: $3,000; Excavating: $1,000; Cement Work: $1,000; Fill / Misc: $2,000. Total Estimate: $7,000.
A motion was made by Mr. Christenson seconded by Mr. Klasen and unanimously carried approving the purchase and installation of the bridge with the funds to be allocated equally between the Streets and Park and Recreation Fund.
a. Mayor Finken commented that the Blandin Foundation and the City of Melrose are still looking for people interested in participating in the 2016 Blandin Foundation Community Leadership Program. Earlier in the year, the City was notified that it had been accepted for participation in a The Leadership Program is designed to develop and sustain healthy community by building on community strengths. Individuals are recruited as part of a 24 person community cohort. Currently, Blandin has received eleven applications. This is a great opportunity to receive training and work collaboratively with community members and neighbors to strengthen and improve your leadership skills at no cost to the individual. If interested in participating or to learn more about the program please contact Blandin or City Administrator, Mike Brethorst.
b. Two applications were received for the skating rink caretaker position. Staff will be interviewing both applicants. In addition, Caldin Rieland will be returning as a rink caretaker from the 2014-2015 season.
Staff is requesting approval to hire one of the applicants to fill the additional position upon a successful interview and qualifications for the position.
A motion was made by Ms. Mayers second by Mr. Klasen and unanimously carried authorizing staff to move forward with hiring a rink caretaker for the 2015-2016 season.
a. Director Walz stated that as previously reported, Willow Express has expressed an interest in acquiring +/-1.73 acres of the northern part of City-owned Lot 6, Block One in East Acres Plat Two located adjacent to the west side of his current business operation. The Property-Acquisition/Disposition Committee with the concurrence of MADA is recommending to the Council that the requested parcel be sold to Willow Express at an cost of $16,051/A (total price +/- $27,768) subject to several easement taking and vacating actions.
Council Member Christenson introduced Resolution No 2015-50 .Approving the Sale of City-Owned Property to Willow Express LTD. 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: None; Absent: Council Member Thieschafer.
b. Mayor Finken stated that The Planning and Zoning Commission has annually reviewed part 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 October 19, the Commission reviewed for written comment to the Council the compliance with the Comprehensive Plan of the proposed 2016 non-equipment related expenditures, along with those proposed for 2017, contained in the Five Year Capital Improvement Plan and Levy Information Years 2016-2020. The Commission determined that the proposed non-equipment related expenditures proposed for Years 2016 and 2017 are in compliance with the City’s Comprehensive Plan and authorized the Chair’s execution of correspondence to the Council evidencing its findings.
c. Mayor Finken stated that in September our main line Fire Tanker was involved in an accident on I-94. The Truck was conducting traffic control and parked on the Interstate, when a distracted driver drove into the rear of the Tanker. As of the writing of this summary, it is anticipated the Truck will be determined to be a total loss. The original purchase price was $126,000 and was being depreciated over 35 years or $3,600 per year. The estimated market value for the same rig and year today is valued at an estimated $155,000. This is due to the cost of new Tankers nearly doubling in the past 10 years.
As per Fire Chief Kraemer, he was informed that a new Tanker would cost between $210,000 to $225,000. This would then be depreciated over a 35 year life $6,000 / $6,428 per year. Initial estimate to repair the Tanker is $115,000 for the Apparatus and $40,000 for the Chase work for a total repair estimate of $155,000. (Frame, rales, Rear end, Engine, drive shaft and water tank) We would then depreciate this repaired truck over the remaining anticipated 25 year life at $6,200 per year. There would be an estimated wash between new and used / repaired vehicle. However, it is unlikely the repaired truck will reach the 25 year deprecation life. At which time we would have to buy a new truck with an estimated increase of 195% over the 25 years. This is based on the last ten years inflation on a new tanker truck. But it is unknown what the cost of the tanker will be. Based on the assessment of 195% increase over the next 25 years, the cost of the $225K tanker would cost $438,750, which would be depreciated over 35 year or $12,535 per year.
If we were to look at the replacement or repair of the Tanker over the next 35 years, it would cost for a repaired tanker being (155K rig repair + 125K dep new rig at 10 years) $280,350 or $225,000 with a new vehicle over the same 35 years. So an estimated savings of $55,350 over the 35 year depreciation estimate if we were to purchase new. Plus, the benefits of purchasing a new Tanker includes warranty, new technology and updated standards. Therefore it is the recommendation of the Fire Department if the truck is totaled, that a new truck be purchased. If it is not totaled, other options would be explored.
The set-a-sides for Fire Vehicles as of December 31, 2014 is $179,795. It is estimated the cost out of the Fire Vehicle fund to be between $55K to $70K after the insurance payment. A staff committee has been formed to review and establish the bids and specification. This includes, Fire Chief, Deputy Chief, City Administrator and others.
A motion was made by Ms. Mayers seconded by Mr. Klasen and unanimously carried authorizing the drafting of bids and specification and bidding of a new or used Fire Tanker Truck and to allow the Fire Department to approve the specification and obtain bids on a new or used tanker truck contingent upon the insurance company’s decision to total the vehicle. Bids would then be presented to the Council upon receipt for consideration.
The following informational items were discussed:
a. The following is a list of schools and/or conferences where registrations have been made: 1) MNCPA, Webinars, Dates vary, Training for Finance Director Tessa Beuning.
b. Utilities Commission’s October 12 Regular Meeting minutes.
c. Albany City Hall Open House Monday, November 30: Members of the Albany Police Department, Fire Department and the Melrose Ambulance Department will be present.
d. The Building Permit Summary Log for Third Quarter 2015.
The total number/value of building permits issued in the third quarter for each of the past five years were:
2015: 45 permits, $1,022,976; 2014: 37 permits, $1,786,464; 2013: 55 permits, $714,764; 2012: 43 permits, $1,440,607; 2011: 54 permits , $866,650.
The total number/value of building permits issued year-to-date for the first three quarters for each of the past five years were:
2015: 104 permits, $2,259,184; 2014: 78 permits, $2,310,341; 2013: 104 permits, $1,886,024; 2012: 118 permits, $3,165,967; 2011: 125 permits, $2,066,523 .
e. MADA/COC July 2 Regular Meeting minutes.
f. Planning and Zoning Commission’s September 14 Regular Meeting minutes.
g. The Melrose City Council at its November 20, 2014 Budget meeting approved donating $5,000 to the Great River Regional Library for a new circulation desk. The Woodshop in Avon has submitted a quote in the amount of $6,265.00. The library has raised the additional funds to pay for the desk; however the flooring under the work station will need to be replaced. The cost of the flooring will be allocated from the building maintenance funds.
A motion was made Ms. Mayers, seconded by Mr. Christenson and unanimously carried that the meeting be adjourned at 6:55 p.m.
Patricia Haase, City Clerk