The Melrose City Council met in a Regular Meeting on Thursday, April 19, 2018 at 6:00 p.m. at the Melrose City Center pursuant to due notice being given thereof. Present were Council Members Dick Christenson, Tony Klasen, Josh Thieschafer, Justin Frieler, and Mayor Joe Finken, City Administrator 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 Mr. Frieler, 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 March 15 Regular Meeting
b. list of bills in the amount of $635,593.41.
c. list of investments for the month of March
d. Donation Resolutions: 1) Resolution No. 2018-14, Donation in the amount of $500 from Melrose American Legion Post #101 to the Melrose Area Chamber of Commerce, Bronze Sponsor for Riverfest
2) Resolution No. 2018-15, Donation in the amount of $1,000 from the Melrose Lions to the Melrose Area Chamber of Commerce, Silver Sponsor for fireworks for Riverfest
3) Resolution No. 2018-16, Donation in the amount of $500 from the Lions Pioneer Inn towards the Melrose Ambulance Department.
e. Gambling Resolution: 1) Resolution No. 2018-17 Resolution Approving Gambling License to the Melrose Area Chamber of Commerce for an exemption from lawful gambling license to conduct a bingo and hold a raffle on May 11, 2018 at the Melrose American Legion located at 265 Country Road 173 SE.
f. Ambulance Department uncollectible accounts in the amount of $9,120.51 have been submitted to Revenue Recapture, collections, or written off. A complete list of accounts is on file at the City Office.
There was also a total of $3,462.49 collected from account holders during this quarter.
g. Fire Department uncollectible accounts in the amount of $600.00 have been submitted to Revenue Recapture, collections, or written off. A complete list of accounts is on file at the City Office.
There was also a total of $325.00 collected from account holders during this quarter.
h. At the March 15, 2018 Council meeting the Council voted to use the insurance proceeds to fund the replacement of a billboard that was destroyed by the September 2017 wind storm. The City leases space from Stearns Electric for $1 per year for the site. The lease has expired, and new update terms is required. A ten-year extension is acceptable by Stearns with the same relative terms.
i. On May 6 Police Officer Matt McDonald will complete four years of service. Police Chief Craig Maus conducted a review and it is favorable; therefore, recommends approval of a step increase from Step 3 to Step 4.
A motion was made by Mr. Frieler, seconded by Mr. Klasen and unanimously carried to approve the Consent Agenda items.
Bob Dickhaus, candidate for Stearns County Sheriff addressed the Mayor and Council on his candidacy for Stearns County Sheriff. Mr. Dickhaus provided an outline of his career in law enforcement which he believes has prepared him for the position. Mr. Dickhaus presented his principal goals should he be elected to the position and asked for everyone’s support.
Police Chief Craig Maus presented the Police Department’s March report. He noted there were 406 calls for service during that month, compared to 269 for March 2017. A total of twenty-nine citations were written for the month of March. The year-to-date number of calls is 1,086 compared to 771 in 2017. For the month of March 2018, the Department received 36 agency assist calls. Chief Maus provided an update on the solicitor, peddler, and transient merchant ordinance. Soliciting is subject to Constitutional protections that peddlers and transient merchants do not receive. The most the City can do is require solicitors to register with the City before conducting business Chief Maus also noted that the Police Department will begin the annual spring Nuisance Code inspections. He also reminded residents that animal licensing will be issued from May 1-31 at the Melrose City Center for residents who own a dog or cat.
City Attorney Scott Dymoke reported on projects he has been working on for the City:
• St. Mary’s Alley Vacation Action: Received and reviewed St. Mary’s Petition for order declaring vacation of alleys. Reviewed Stearns County and City of Melrose land use records and applicable law on abandonment of alleys. Prepared and forwarded opinion to City staff recommending no challenge to St. Mary’s petition.
• First Street NE: Reviewed project bids and applicable regarding error in bidding documents. Prepared opinion advising City staff to allow bidder to withdraw bid on project.
Community Development Director Lisa Atkinson provided an update on ongoing projects. Ms. Atkinson reported on matters that will be brought before the Planning and Zoning Commission at its May meeting. Ms. Atkinson also provided a brief report on MRES Technology Days which she attended on April 17 & 18 in Sioux Falls SD.
A motion was made Mr. Thieschafer, seconded by Mr. Klasen and unanimously carried to open the public hearing at 6:29 p.m. The Melrose City Council held a public hearing to consider amending Chapter 76 of Melrose City Code, Motorized Golf Carts and All-Terrain Vehicles, to consider amending the definition of an All-Terrain Vehicle to have a total dry weight of 2,000 pounds or less.
City Administrator Brethorst presented the Affidavit of Publication.
Police Chief Maus explained the revision which would emulate the states definition of the All-Terrain Vehicle allowing the permitting of side by sides, prowlers, rangers, etc. However, if the Council wishes to look at other alternatives staff can revise the ordinance to reflect those changes and bring it back at the next regular meeting.
Joyce Meyer stated that other neighboring communities along the interstate do not require licensing other than that issued by the state. She asked how would the city enforce those that live outside the community that come into town for shopping or dining? Ms. Meyer stated that these vehicles are already licensed through the state. These vehicles are equipped with seat belts and have more capabilities.
Gary Toenyan stated that he believes it would be a traffic hazard to have a slow-moving vehicle (smv) sign on side by sides as once they get on the outside of town they would have to pull over to remove the sign as it is actually illegal to have a smv sign if going over 35 mph. There being no further comment the Public Hearing was closed at 6:43 p.m.
Mayor Finken noted that a review of St. Mary’s Church’s Application to Vacate the Alleys in Blocks 32, 35, and 36 of the Original Plat of Melrose, Stearns County and City of Melrose records, and applicable law regarding has be conducted. A review by Melrose Public Utilities and the City Engineer confirmed that there are no utility lines located within the alleys. There is a sanitary sewer line running northerly from Fourth Street SE, thru Blocks 35 and 34, to Second Street SE, which continues running northerly to the wastewater treatment plant. This is currently covered by a Utility Easement that is not associated to this vacation petition. Minnesota law provides for two methods of vacating streets and alleys. The most common method is for the property owner to petition the City Council for a resolution vacating the street or alley. Alternatively, the property owner can apply to the court for an order vacating the street or alley. In accordance with full legal and staff review, staff does not object to the requested action. Council Member Tony Klasen noted that typically an alley vacation, public right of way, or easement would come before the Planning and Zoning Commission for review and recommendation to the Council, however in this case they lobbied the court. One concern is the block where the church is currently located. What if in the future it becomes residential would we want an alley located in the area? Without knowing the future plans of this area should the Council concur with the alley vacation. Without having a plan in hand Mr. Klasen is hesitant to vacate the alley.
Council Member Thieschafer asked for clarification on the headstones located in the public right of way on 4th Street SE and if the request addresses all the effected property. After further discussion a motion was made by Mr. Thieschafer, seconded by Mr. Christenson and unanimously carried concurring with staff to consent to the requested action.
Mayor Finken noted that earlier this evening a Public Hearing was held to take comment regarding amending Chapter 76 of Melrose City Code, Motorized Golf Carts and All-Terrain Vehicles, to consider amending the definition of an All-Terrain Vehicle to have a total dry weight of 2,000 pounds or less. At the March 15, 2018 Council Meeting Police Chief Craig Maus had stated the department has been contacted regarding the permitting of side by sides, Prowlers, Rangers, etc. Chief Maus commented that the Council may want to look at updating City Code to change the definition of an ATV of having a dry weight of 2,000 pounds or less, thus allowing for the permitting of side by sides, Prowlers etc. Council Member Thieschafer commented that he is of the opinion that if the vehicle is licensed by a state agency no additional permitting should be required. However, golf carts on the other hand are not state agency licensed and therefore recommends the city continues permitting them. Council Member Klasen stated that if the vehicle is already street legal he is of the opinion the city should not require permitting. If not, perhaps that is how the city requires permitting. After further discussion the Council by consensus determined Class 2 vehicles not require permitting and directed staff to look at revising the ATV definition.
Mayor Finken stated that historically the City has hired a seasonal part-time worker to assist with the summer workload. Streets/Parks Supervisor Gary Middendorf is requesting approval to again hire a temporary summer/seasonal worker for 24 hours per week to assist with lawn and park maintenance, cleaning, etc. City Administrator Mike Brethorst stated that in 2017 the City contracted with Ron Tieman. Staff has contacted Ron Tieman regarding temporary part time employment with the City. Mr. Tieman said that he is interest in the position. A motion was made by Mr. Christenson, seconded by Mr. Thieschafer and unanimously carried authorizing staff to hire a temporary summer/seasonal worker for the 2018 season.
Mayor Finken stated that efforts are underway to seek quote for the demolition of the State Farm building in preparation for a possible development on the Kraft lot. The funds to pay for this will come for the State Appropriations. It is estimated to cost 28K for demo and approx. $5,300 for Admin and Reporting. WSB has been contracted to provide the bid specification and serve as the consultant for this project. Bids are being sought and will be provided to the City Council once bids are received. We need a special council meeting to approve the demolition contractor to perform the work. This has been tentatively set for Thursday, April 26, 2018 at 6:00 p.m. Below is brief summary of the compressed time line to support the Demo of the Kraft Lot, State Farm Building.
• Bid doc final – 4/10/18
o Assuming draft is sent for review today 4/9
• Contractor bid walk – 4/16/18 at 9 a.m.
o Not mandatory to submit a bid
o WSB will lead bid walk
• Bids due – 4/23/18 at 11 a.m.
o Do not plan to publicly advertise due to aggressive schedule
o Will need two bids to award
• Project Award – 4/26/18
o At City Council Meeting
• Project completion – 5/31/18
A Special Meeting has been scheduled for Thursday, April 26 at 6:00 p.m. to award bids
Mayor Finken noted that staff is also working with WSB for the “soils” cleanup on the Kraft Lot in preparation for a development. A scope of work and admin quote is being drafted by WSB. The funds to pay for this will come from the State Appropriations. Once bids are received for this, a special Council meeting will be needed. A Special Meeting has been scheduled for Thursday, April 26 at 6:00 p.m. to award bids
Mayor Finken stated that the City has sought bids for the 1st Street / Bakery Alley street project. The City received 9 bids for the project varying from 695K to 854K. The Engineering estimate for the project was 900K. The low bidder is Breitbach Construction Co. Estimated breakout for the project including engineering, 5% contingency and the Vortex Storm Interceptor is as follows: State Appropriations: $330K to $293K. City of Melrose: $538K – $481K If the Sauk River Watershed does not fund the Storm Interceptor, the $35,000 cost will be removed from the city. The Interceptor cost would be reimbursed to the City of Melrose by the Watershed. A motion was made by Mr. Thieschafer seconded by Mr. Christenson and unanimously carried awarding the bid to Brietbach Construction Company in the amount of $695,178.75 contingent upon receiving confirmation from Sauk River Watershed committing to pay for 50% of the interceptor.
Mike Nielson with WSB & Associates provided an update on the 5th Avenue Bridge. City Administrator Brethorst stated that the Stearns County Soil and Water Conservation District has submitted a rough estimate for the rock arch rapids to Lessard Sams. Lessard Sams and the County will make a joint application for grant funding. A preliminary application submitted for LCCMR funding has received approval. The final application has been submitted. Council Member Thieschafer stated for the record that previously the Council by consensus had determined that the city would continue discussion on the rock arch rapids so long as they had support and major funding from outside sources.
Mayor Finken stated that the City has entered into agreements with three abutting property owners to the Melrose Parking Lot located on the South side of 1st Street. The cost for this are as follows:
1st Street NE based on the bid prices received at $33.60 per square yard. The area measured is between the city owned alley way and the buildings.
Address Area (SY) Cost/SY Cost
313 8.9 $33.60 $299.04
319 44.7 $33.60 $1,501.92
321 55.1 $33.60 $1,851.36
Staff will be submitting bills to these property owners for the cost of this project. One Property owner has requested the City Assess the parcel. Efforts are underway to facilitate this request.
Mayor Finken noted that in order to maximize the Industrial Park and eliminate the annual need to control the weeds by City staff, it is proposed to rent out a portion of the Melrose Industrial Park for Ag. Land. This would be treated the same as the rental of land in and around the Melrose Well Fields. It is proposed that there would be sealed bid process to secure bids to rent the approximate 27.5 acres of tillable land. The minimum bid is set at the estimated taxes to be paid. Taxes, (based on 2018 year’s rates, would be approximately based on 27.5 acres of land. (i.e. $44.00 per acre) This rate is based on the agriculture land being homesteaded. (i.e. $88.00 per acre). The City will capture approximately 60% of the property taxes. Annually, the City of Melrose spends approximately $500 on maintenance of the industrial park land. A draft contract has been prepared that would outline cancelation and possible damages in case a parcel in the Industrial Park would sell. A motion was made by Mr. Christenson seconded by Mr. Klasen and unanimously carried authorizing staff to seek a renter for the approximately 27.5 acres and allow staff to award to highest sealed bid.
Mayor Finken stated that in accordance the with Development Agreement as approved by the City Council with Jim and Lisa Illies, attached is a resolution calling for a Tax Abatement Hearing on parcel 66.36956.0000. This public hearing would occur on May 17, 2018. In addition to Hearing, the Council must take action abating the parcel. In addition to creating the Abatement, it must remove the Illies Parcel from TIF 12-1 District. State Law does not allow for a development of properties in a TIF district to participate in an abatement program at the same time. No public hearing is required for removing a parcel from a TIF district. Stearns County will be asked to do the same and abate their portion of the taxes for Jim and Lisa Illies at a meeting in May. In total it is estimated the abatement will equal $15,000 over a 10-year life. Council Member Thieschafer introduced Resolution No. 2018-18 Resolution Calling for a Public Hearing on Proposed Property Tax Abatements for James and Elizabeth Illies. The motion was seconded by Mr. Frieler with a roll call vote recorded as follows: For: Council Members Thieschafer, Klasen, Christenson, Frieler, and Mayor Finken; Against: None.
Mayor Finken noted that the City of Melrose has adopted a nuisance ordinance. Annually there is pushing to resolve nuisance, as well as on a complaint basis, the City will notify property owners and take appropriate actions up to legal within the Residential Zones. As per the guidance of the Planning Commission, the historical practice in the C1 / C2 district is to enforce the Business Districts nuisances upon complaints. Letters and one on one conversation have occurred. In the most recent complaints, the property owners have not acted to remediate their nuisances. Legal action has not been taken to resolve these complaints. The question before the Council is does the City which to follow the same practice as residential nuisance process for complaint driven nuisances on commercial properties. After further discussion a motion was made by Mr. Thieschafer seconded by Mr. Frieler and unanimously carried to follow the same practice as the residential nuisance process for complaint drive nuisances on commercial properties.
The following informational items were reviewed
a. Utilities Commission’s March 12, 2018 Regular Meeting minutes.
b. The following is a list of schools and/or conferences where registrations were made:
1) Safety and Loss Control Workshop April 26, 2018. Attending Streets/Parks Supervisor Gary Middendorf.
2) Technology Days April 17-18 in Sioux Falls SD Attending: Planning and Economic Development Director Lisa Atkinson.
c. 2018 League of Minnesota Cities Annual Conference
d. 1st Quarter Ambulance Department Report
A motion was made by Mr. Frieler, seconded by Mr. Klasen and unanimously carried that the meeting be adjourned at 7:55 p.m.
Patricia Haase, City Clerk