Melrose City • September 11, 2014

The Melrose City Council met in a Regular Meeting on Thursday, September 11, 2014 at 6:00 p.m. at the Melrose City Center pursuant to due notice being given thereof. Present were Council Members Jenny Mayers, Joe Finken, Tony Klasen, Dick Christenson, Mayor Tim Vogel, City Administrator/Treasurer Michael Brethorst and City Clerk Patti Haase. Mayor Vogel presided thereat. Also in attendance were several American Government students from the Melrose Area Public High School. The Council then recited the Pledge of Allegiance.
Mayor Vogel then called for a moment of silence to reflect on those who lost their lives, sacrificed, and served on September 11, 2001.
A motion was made by Mr. Christenson, seconded by Mr. Finken and unanimously carried to approve the agenda as amended.
Mayor Vogel then opened the floor to public comment. Attorney Bob Pottratz addressed the Council regarding the City’s Prosecuting Attorney Contract. Mr. Pottratz stated he believes it benefits the community if the prosecuting attorney resides within the City. He noted that by doing so, the City retains control and makes it more accessible for clients and the Police Department. Mr. Pottratz also noted that by keeping the jobs local, the taxes and other business transactions stay local. Mr. Pottratz asked the Council to reconsider and extend his contract for an additional two years and try to recruit an attorney to set up practice within the City that would take over when his contract expires. The following items were considered for approval under the Consent Agenda:
a. the minutes from the Council’s August 21 Special Meeting and August 21 Regular Meeting. b. list of bills in the amount of $254,412.25.
c. list of investments for the month of August.
d. Resolution No. 2014-32, Resolution Appointing Election Judges. The Election Judge appointments are for the General Election that will be held on Tuesday, November 4, 2014.
e. Donation Resolution: 1) Resolution No. 2014-34, Donation in the amount of $500 from the Freeport State Bank to the Melrose Fire Department.
f. Gambling Resolution: 1) Resolution No. 2014-38, Resolution Approving Gambling License to Melrose Chamber of Commerce for an exemption from lawful gambling license to hold a raffle on November 28, 2014 at 223 Main Street East, Melrose, Minnesota.
g. A notice has been sent by Street/Parks Supervisor Mark Maus to the property owner at 223 4th Street SW requesting that the grass be cut. As per City Code 95.38, all property owners shall be responsible for the removal, cutting, or disposal and elimination of weeds, grasses, and rank vegetation or other uncontrolled plant growth on their property that, at the time of notice, is in excess of eight inches in height.
It is recommended that the Council approve the destruction orders as it then becomes effective for the entire growing season, meaning that if at any time after the issuance of the notice a violation reoccurs, the City shall abate the weeds without further notification to the property owner. It should be noted that any unpaid grass cutting bills can, and will be certified against the property prior to year-end.
h. The Council to give consideration to Contract Voucher No. 2/Final from Caldwell Asphalt for the 2014 Sealcoat Project. Mike Nielson, PE with WSB & Associates, has reviewed and recommends approving the construction voucher. This pay request is for $4,119.91 and is the final payout for the project. This will close out the project.
A motion was made by Mr. Klasen, seconded by Ms. Mayers and unanimously carried to approve the Consent Agenda.
Mayor Vogel opened the first Public Hearing at 6:08 p.m. The Council held a Public Hearing on a proposal that the City of St. Cloud, Minnesota issue revenue bonds on behalf of CentraCare Health System, a Minnesota nonprofit corporation and its nonprofit affiliates in one or more series pursuant to Minnesota Statutes, Chapter 462C and Sections 469.152 to 469.165, in an amount not to exceed $50,000,000, for the purpose of refunding a portion of the Issuer’s Health Care Revenue Bonds, Series 2010A, issued on behalf 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 on August 27, 2014.
Adam Paulson with CentraCare Health Systems stated that the City of St. Cloud issue revenue bonds on behalf of CentraCare Health System, a Minnesota nonprofit corporation and its nonprofit affiliates in one or more series pursuant to Minnesota Statutes, Chapter 462C and Sections 469.152 to 469.165, in an amount not to exceed $50,000,000, for the purpose of refunding a portion of the Issuer’s Health Care Revenue Bonds, Series 2010A, issued on behalf of the Corporation.
Mayor Vogel asked if anyone present had any additional comments or concerns. There being none, the public hearing was closed at 6:10 p.m.
Mayor Vogel then opened the second Public Hearing at 6:10 on the request of Everardo Botello Ramirez and Maria Botello Ramirez on their petition submitted July 21, 2014 for the annexation to the City of the Ramirez’ .71 acre residential property located at 32892 County Road 168 in Melrose Township adjacent to the southeast corner of the Daylight Court development. The septic system serving the Ramirez household has failed and Stearns County has determined that additional repairs to the system, or even its total replacement, likely will not meet the residents’ needs. The County has approached the City in behalf of the Ramirez’ believing the only solution to this wastewater problem is connecting to the City’s public wastewater system.
While the City does not have a wastewater main adjacent to the Ramirez property, the property could potentially be served by a private force main connected to the City main serving Daylight Court. Prior to such a connection if approved by the City, the Ramirez property would need to be annexed to the City. The required publication, posting and mailing for the annexation-related public hearing has been completed.
Mayor Vogel stated that there are a number of variables and unknowns that need to be addressed. The question was how many occupants are living at the address. Why is the current system failing? Mark Latterell with Stearns County Environmental Services stated that the County also believes the system may be failing due to the number of occupants; however, it is projected to be more costly to extend the existing mound system than to connect to the City service. Mr. Latterell stated that County is in the process of obtaining cost estimates. Mr. Latterell also noted that the County does have approximately $10,000 in grant money available that could be used towards this project; however, the funds are available only until year-end. Ms. Mayers noted that if annexed into the City the residents will have to become familiar with and abide by City code as currently there are a number of conditions that do not comply with city code.
Mayor Vogel wanted the issues addressed prior to approving annexation to the City. Al Wiechman, a neighbor to the property owner, stated that currently the overflow is infringing on his property and that he has installed a fence to keep his cattle out of the polluted area. No further comments were forthcoming; therefore, the public hearing was closed at 6:33 p.m.
Police Chief Maus presented the Police Department’s August monthly report. He noted that a total of 17 citations were issued in the month of August. There were 120 verbal warnings and one written warning. Chief Maus noted there were 283 calls for service during this month, compared to 220 for August of 2014. The year-to-date number of calls is 1847 compared to 1750 in 2013. For the month of August 2014, the Department received 25 agency assist calls.
Planning and Development Director Walz reported on the Planning and Zoning Commission’s August 9 Regular Meeting. Director Walz stated that the Commission discussed the proposed Preliminary/Final Plat of Nathe’s Addition as well as the requested annexation of Parcel No. 21.12551.0000 that was presented earlier this evening at Public Hearing. In addition the Commission also reviewed three separate inquiries regarding residential accessory uses/structures and their current or future compliance with Zoning Ordinance Sections.
Planning and Development Director Walz reported next on Rose Park / Melrose Community LLC. Director Walz noted that Erin Hausauer with Stearns County Emergency Management who has been involved with the storm shelter is no longer with the County. The responsibility has been temporarily reassigned. Director Walz also noted that the shelter plans had been reviewed and approved by the State and by FEMA; however, when the County sent the plans out for bids, it was noted that the electrical portion of the plan had been omitted; therefore either the current plans will need to be revised or new plans will need to be drawn up and resubmitted. Hank Schreifels with Stearns County Environmental Services has informed staff that it is most likely that the storm shelters for both the Melrose Mobile Home Park and Rose Park / Melrose Community LLC will not move forward until 2015.
City Attorney Scott Dymoke reported on the projects he has been working on for the City:
• New Substation Site: Prepared closing documents to complete acquisition of new substation site.
• Charter Cable Television Franchise: Reviewed proposed resolution and supporting documents from Charter Communication requesting consent to proposed corporate reorganization.
• Ramirez Annexation: Reviewed procedures and legal authorities in preparation for hearing on proposed annexation of Ramirez property by the City of Melrose.
• Rose Park: Reviewing documentation regarding the torrens titles for property at Rose Park/Melrose Community LLC. The Certificate of Title has been received.
Chamber Executive Director Kathie Dziengel reported on the Riverfest celebration scheduled for June 26 and 27, 2015. Due to lack of volunteers, the event has been scaled back from a three-day event to a two-day event. Ms. Dziengel also highlighted some of the upcoming Chamber events: Rose Days will take place on October 9 and 10. Place an order with the Chamber for one dozen roses at $15 that will be delivered on October 9 and 10; Halloween Kiddie Parade and Party will be on October 31; and Holiday Kick-off parade and fireworks will be on November 28.
Mayor Vogel presented for consideration Resolution No. 2014-36, 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. CentraCare Health System and the City of St. Cloud are refunding a bond issuance. In accordance with Internal Revenue Code Section 147, approval is needed from the City of Melrose for this transaction, due to the facility location within the City limits of Melrose.
Mr. Finken introduced Resolution No. 2014-36, 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 Finken, Klasen, Mayers, Christenson, and Mayor Vogel; Against: Non. A copy of the resolution is on file in the City Administration Office.
Mayor Vogel stated that if the Council wishes to proceed with the annexation of the Ramirez property, it may wish to identify the terms and conditions under which such an annexation will be allowed to occur. Chief Maus has been out to the Ramirez property but did not inspect the dwellings. He noted some areas that would be in violation of City code if the property were to be annexed into the City were the animal ordinance (i.e., chickens not allowed in City limits), and nuisance ordinance (i.e., fencing would need to be repaired and painted, shed would need to be repaired and painted, debris in yard would need to be removed and cleaned up). City Administrator Brethorst noted that the Utilities Commission had reviewed this matter at their September 8 meeting and had opted not to waive any connection fees. They believe this would set a precedence that would not support the Utility. The Commission requires a water meter to be placed on the well to the house to determine flow for accurate billing for sewer usage. In addition, the Utilities Commission is willing to assist with the sewer costs through an assessment. However, the property owner must make a down payment of a minimum of 25% with the balance to be assessed to them over a five-year period at a rate of 2% over prime. Plus, they must provide a letter from their lender stating that they cannot obtain a loan.
It was the consensus of the Council to hold a special meeting once cost estimates have been obtained and issues have been reviewed and addressed by the property owner.
Mayor Vogel stated that the City has contracted with Arvig to provide video production and recording of the regular Council meetings. The Filming and Production Services Agreement with Arvig expires at year-end. The two-year renewal of the video recording from Arvig states the City shall pay Arvig for the purchased services at the rate of Two Hundred Seventy Five and 00/100’s dollars per taping ($275) per month. Any other request for taping and editing of official City meetings and/or events will be at $60 per hour with a minimum charge of two hours. There are no other known video recording businesses that can provide this service within Sauk Centre or Melrose.
A motion was made by Mr. Finken, seconded by Ms. Mayers and unanimously carried approving the two-year Filming and Production Services Agreement with Arvig.
Mayor Vogel noted that at its meeting on September 9, the Planning and Zoning Commission held a Public Hearing to consider the proposed Preliminary/Final Plat of Nathe’s Addition submitted by Diane Nathe. The proposed 8.73 acre plat consists of Parcels 66.36416.0000 and 66.36431.0000 which are located at 523 5th Avenue SE. The two parcels proposed to be platted are surrounded by 5th Avenue SE, Interstate 94, the US Bank property, the Burger King property and a previously platted parcel also owned by Diane Nathe. Parcel 66.36416.0000 is zoned R-2, Residential and the interior Parcel 66.36431.0000, which contains .49 acres and does not have access to a public road right-of-way, is zoned C-2, Commercial Highway. The property is proposed to be platted to allow the combined 8.73 acre parcel to be subdivided into two new lots plus a remnant outlot which will permit the smaller, new lot containing 14,673 square feet along with a steel structure to be sold to the current occupant/lessee. It is the recommendation of the Planning and Zoning Commission to approve the Preliminary/Final Plat of Nathe’s Addition.
A motion was made by Ms. Mayers, seconded by Mr. Christenson and unanimously carried adopting Resolution No. 2014-37 Approving the Preliminary/Final Plat of Nathe’s Addition Consisting of Parcel 66.36416.0000 and 66.36431.0000. A copy of the resolution is on file in the City Administration Office.
Finance Director Tessa Beuning presented the proposed 2015 Budget for the General Fund. State law requires that the City certify the proposed tax levy to the County Auditor by no later than September 30; therefore, it will be necessary to review the budget and take action on adoption of the proposed preliminary budget and the proposed tax levy at this meeting. The final levy adopted in December can be lower than the levy certified in September, but cannot be higher. The Council discussed the proposed budget and levy at a Special Meeting held on Thursday, August 21.
It is proposed that the preliminary property tax levy be certified at $973,000. Also included is a total debt levy of $365,000 for a total proposed tax levy of $1,338,000 and an estimated tax capacity rate of 70.588% which is slightly more than the final levy of 69.628% for 2014 taxes payable. The City must also provide the County Auditor with precise information on:
1) Time and place of a public hearing for the adoption budget and levy will be discussed.
2) The public must have the opportunity to speak and the meeting must not be held before 6:00 p.m.
3) Date, place and time of the public hearing at which the final budget and levy will be determined, with this meeting to be scheduled after November 24 and before December 27. a) Staff recommends this hearing be scheduled for the December 11 at 6:00 p.m. at the Melrose City Center.
4) Phone number that City taxpayers may call if they have questions related to the auditor’s property tax notice, which is generally delivered in November. (320.256.4278)
5) Address where comments will be received by mail. (225 1st Street NE, Melrose, MN 56352 Attn: City Administrator)
The above-noted items are part of the revised Truth in Taxation requirements. The information must be included in the minutes and the City must comply with existing publication requirements for minutes.
Mr. Christenson introduced Resolution No. 2014-33, Resolution Adopting Proposed Tax Levy Approving 2014 Tax Levy, Collectible in 2015 and Setting Hearing Dates. The motion was seconded by Mr. Finken with a roll call vote recorded as follows: For: Council Members Christenson, Finken, Mayers, Klasen, and Mayor Vogel; Against: None. A copy of the resolution is on file in the City Administration Office.
A motion was made by Mr. Christenson, seconded by Mr. Klasen and unanimously carried approving the preliminary 2015 Budget.
City Administrator Brethorst stated that the Parks and Recreation Board has reviewed the draft plaza plan and costs associated to the development of the plaza. The Board expressed concern with the plan based on the comments from the working group; therefore, the Board voted to not support the probable cost estimates and design elements as presented in the plaza concept. The Board will review the proposal and plan in more detail in the coming months and develop a revised recommendation now that costs are available.
Mayor Vogel noted that the City has received a grant in the amount of $109,000 for the placement of a trail from the Lake Wobegon Trail into the Sauk River Park. The City has a match of approximately $36,000 for the project. The grant application requires considerable application for permitting and reviews and design and easement acquisition.
The Parks and Recreation Board and Property Acquisition/Disposition Committee has met and reviewed the cost to acquire an easement for the parcel and directed to the negotiation of the parcel. Two other options for the route have been looked at, with the easterly route being the only viable option. One of the options was to move the curb line along 7th Ave SE to allow for the design standard of the DNR; however, cost estimates for this were estimated over $55,000. After contingent negotiations for the parcel in question, it is their recommendation to acquire in the amount of $15,900 for approximately the western 40 feet of the David and Paulette Seifermann property. The property owners are amenable to this price contingent on:
• Prior to completing the transaction by the property owners, they would like to see a trail staked out that meets their expectations, easement survey, topographic survey, retain the retaining wall on north side of the property, retain as many trees as possible in the layout of the trail, develop into the design drainage, and the City to pay for associated legal costs for the transactions.
Staff has reviewed the application/review process for the grant approval final review. Based on this, staff will need assistance in the completion of the application. Staff can complete about 25% of the application; however, design and some permitting will be required. A quote in the amount of $11,600 was received from WSB to complete the environmental portion of the application.
Elmer Hellermann addressed the Council stating that he had some concerns with the placement of the trail. Mr. Hellermann noted that he is opposed to the trail as it is in very close proximity to his property and has concerns of littering, privacy and safety issues. Hank Middendorf also addressed the Council noting his opposition to the placement of the trail due to the same reasons as noted by Mr. Hellermann. Mr. Middendorf also wanted to be guaranteed that the City would not allow the use of snowmobiles or any other motorized vehicle on the trail.
Mr. Klasen noted that the project costs are a concern and believes alternate routes should be considered. It was also noted that the proposed trail would not provide a direct route to the Sauk River Park.
After further discussion, a motion was made by Mr. Klasen not to move forward with the placement of the trail at the property located adjacent to Seifermann’s and Hellermann’s. The motion was seconded by Ms. Mayers with a roll call vote recorded as follows: For: Council Members Klasen and Mayers; Against: Council Members Finken, Christenson, and Mayor Vogel; Motion failed.
A motion was then made by Mr. Finken approving the placement of the trail at the property located adjacent to Seifermann’s and Hellermann’s. The motion was seconded by Mayor Vogel with a roll call vote recorded as follows: For: Council Member Finken and Mayor Vogel; Against: Council Members Klasen, Mayers, and Christenson.
Due to the lack of funding being allocated to complete the project, the City will return the $109,000 grant. The Parks and Recreation Board will be asked to review the connection again and see if there is a way to complete the trail without DNR funding and still connect it to the Sauk River Park.
Mayor Vogel commented that the Parks and Recreation Board has reviewed the Five Year Capital Improvement Plan and specifically looked at the Meadowlark loop and the Country Club Road SW sidewalk.
The Board felt that the loop within the Park is not needed at this time due to the fact that the traffic in the vicinity of the area is relatively residential. Based on this, they recommend not completing the loop and postpone the project to the future (ie. 10 years).
The Board also reviewed the proposed sidewalk and connection along Country Club Road SW and connections into Meadowlark Park. The Board recommends placing the connection / trail into the park; however, they do not recommend completing the sidewalk portion of along Country Club Road SW. This connection is estimated at 350 linear feet for an estimated cost of $7,500.
Council Member Klasen noted that completing the loop would make the Park more accessible and provide residents in this area with a walking path. Mr. Klasen noted that both projects would enhance the parks and trails system at an affordable cost.
After further discussion, a motion was made by Ms. Mayers, seconded by Mr. Finken and unanimously carried to include the Country Club Road SW connection to Meadowlark Park in the Five Year Capital Improvement Plan; however, the sidewalk from Casey’s General Store to the Meadowlark Apartments was not to be included. The Meadowlark loop will be brought back before the Parks and Recreation Board for discussion with a recommendation to the Council.
Mayor Vogel noted that Stearns County controls the placement of traffic signs on County roads and intersections. The current assessment of the sign placement at the intersection according to current standards warrants a two-way stop. Traffic count does not warrant a three or four-way stop. Secondly, it is an offset intersection so the stop sign would cause confusion to most first-time drivers. Additionally, it would slow the traffic flow onto County Road 13 nor have their accidents noted at the intersection that would warrant a three or way four-way stop.
According to the County Engineer, the offset intersection does create some issues for an all-way stop, primarily that there would likely be major traffic backups that would not allow the traffic from the southerly (north bound) 5th Avenue NE to enter onto Main Street, as we would not stop west bound traffic two times in that short of a distance. An all-way stop would create backups in all directions, rather than in just one direction during the peak times.
Mayor Vogel noted that City Attorney Scott Dymoke has reviewed Charter Communication’s request for transfer of ownership. The Franchise Agreement with Charter does not address transfers of ownership. That topic is addressed in Melrose’s Cable System Regulations Ordinance (#2003-C). The ordinance, MN Statutes Ch.238, and 47 USC 537 all require notice of the proposed transfer and consent by the City, but that consent “cannot be unreasonably withheld.” The only basis to withhold consent is if the City, after investigation and hearings, finds that the new entity does not have the legal, technical, and financial qualifications to maintain and operate the system. I can’t imagine that any investigations or hearings conducted by the City would uncover evidence that “New Charter” is unqualified to continue operating the cable system in Melrose. The alternative is to do nothing. If the City fails to act on the resolution within 120 days, the request to transfer ownership is deemed granted.
Mr. Klasen introduced Resolution No. 2014-35, Resolution Consenting to Transfer of Control. The motion was seconded by Mr. Christenson with a roll call vote recorded as follows: For: Council Members Klasen, Christenson, Finken, Mayers, and Mayor Vogel; Against: None. A copy of the resolution is on file in the City Administration Office. The following informational items were discussed:
a. The Utility is in need of replacing the west substation due to the age and condition of the substation. In an effort to plan and prepare for the future and listen to concerns from residents, the substation will be moved to another site closer to the Melrose Industrial Park. This location is ideal for the probability of future load location. It will eliminate the need for the current transmission line to the current site. It will allow for growth and eliminate the need to acquire additional property adjacent to the current west substation. It will remove the substation from a residential neighborhood and create more open space. A feasibility study was conducted by the City’s Electrical Engineer (DGR) and their finding was very much in favor of the move, for the future need and growth of the electric utilities system. By moving the substation to the Rausch property on 2nd St. SW, it would support a load growth up to 10 megawatts without the need of a third electrical substation which could be a saving of $1.7 million in the future. The move would also eliminate the owning and maintaining of transmission lines. The Utilities Commission unanimously supported the moving of the west substation to the Rausch property.
The new location for the substation on the “Rausch site”, the (existing) west substation and the transmission line will no longer be needed, those costs have been removed. The cost to rebuild the transmission line to the existing location for the material only is around $150,000 and there would be yearly maintenance costs along with that. Those cost estimates are $60,000 and $150,000, respectively. The cost of construction at the Rausch location is estimated around $3 million – $3,434,770.
A review of the proposed 2015, 2016 and 2017 rates were conducted by MRES. In their review, it is assessed that with the proposed project and relocating the substation, the rate projections would remain relatively the same as originally predicted. A 2.5% for 2015, 2% to 3% for 2016 and 2017 increases are projected. With the total potential draw downs, the cash reserves would be adequate to support possible significant repairs if needed. b. Utilities Commission’s August 11 Regular Meeting minutes.
c. Streets/Parks Supervisor Mark Maus has received the state contract pricing for the salt/sand mixture. The price is $78.14/ton. The Street Department has ordered 75 ton for a cost of $5,860.50.
d. Correspondence from the Stearns County Assessor’s Office – Local Board of Appeals Training. Council Members Finken and Christenson training expires on July 1, 2015. Council Members Klasen and Mayers training expires on July 1, 2016. e. The Building Permit Summary Log for Second Quarter 2014.
The total number/value of building permits issued in the second quarter for each of the past five years were: 2014 2013 2012 2011 2010
29 42 52 54 46
$226,850 $1,122,382 $1,509,800 $1,927,996 $8,267,581
The total number/value of building permits issued year-to-date for the first two quarters for each of the past five years were: 2014 2013 2012 2011 2010
41 49 75 71 53
$523,877 $1,171,260 $1,725,360 $2,066,523 $8,353,681
A motion was made by Mr. Finken, seconded by Mr. Klasen and unanimously carried that the meeting be adjourned at 8:15 p.m. Patricia Haase, City Clerk