Melrose City – August 23, 2012

Melrose City
August 23, 2012
The Melrose City Council met in a Regular Meeting on Thursday, August 23, 2012 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. The Council then recited the Pledge of Allegiance.
A motion was made by Ms. Mayers, seconded by Mr. Finken and unanimously carried to approve the agenda as amended. Mayor Vogel 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 July 19 Regular Meeting.
b. list of bills in the amount of $297,253.40.
c. list of investments for the month of July.
d. The Initiative Foundation has submitted a request for support in 2013. The Foundation is seeking financial support in the amount of $1,500 from the City of Melrose in 2013. In the past, the City and Utilities have agreed to share equally in the annual pledge amounts. The Council to concur with the Utilities Commission approving the donation request. The Utilities Commission approved its 50% match at its August 2012 meeting.
e. Resolution No. 2012-34, Resolution Approving Gambling License to Melrose Chamber of Commerce for an exemption from lawful gambling license to conduct bingo and hold a raffle on November 23, 2012 at 223 Main Street East, Melrose, Minnesota.
f. The City has received a 2:00 A.M. Closing Liquor License Application from Melrose Place Pub. City Code Chapter 113 adopts M.S. Ch. 340A by reference which allows sales of intoxicating liquor between the hours of 1:00 a.m. and 2:00 a.m. after obtaining a permit from the State of Minnesota. The State provides the application form and collects the license fee. The City has the ability to also establish a fee, however, has chosen not to.
g. 1) Resolution No. 2012-35, donation in the amount of $500 from the Jennie-O Turkey Store towards the Melrose Fire Department ladder truck.
2) Resolution No. 2012-36, donation in the amount of $500 from R & L Turkeys towards the Melrose Fire Department ladder truck.
3) Resolution No. 2012-40, donations towards the Tri-Cap bus service.
h. The Council to give consideration to approval of a Community Festival License – Private Property to Martinez Meat & Grocery for Saturday, September 15, 2012. The event will be held outdoors and a portion of 5th Avenue and Main Street will be closed. This event must comply with City Code Chapter 113.23 (D) which deals with Community Festivals – Public Property. Police Chief Jensen and Public Works Director Harren have reviewed the Community License Application and recommend approving the application.
A motion was made by Mr. Christenson, seconded by Mr. Klasen to approve the consent agenda as submitted.
The Council held a Public Hearing on the petition of Twin Pines Catering Co (Steve Danzl) for the vacation of part of the North Side of Kraft Drive SE adjacent to Parcels 66.36421.0000 and 66.36410.0000 in the City of Melrose, Stearns County, Minnesota reserving an easement for drainage and utility purposes over, under and across thereof. The two adjoining parcels which are adjacent to the part of Kraft Drive SE requested to be vacated have been proposed to be subdivided as a two-lot plat entitled Overland Dollar Addition. The proposed subdivision and plat accompanied by the requested vacation will enable the property owner to complete the construction of a restaurant facility with the required parking on the proposed Lot 1 and to sell the proposed Lot 2 for the development of a retail sales facility containing 9,100 square feet. In 1986 to accommodate development on Lots 1 and 2, Block 1 of the then proposed Mielke Addition, a similar vacation of a linear part of Kraft Drive SE to facilitate access, parking and maneuverability received Council approval. The approximate size of the area requested to be vacated is 17 feet x 543.60 containing 9,241.20 square feet. It is staff’s opinion that the area requested to be vacated is excessive when compared to other City streets with their 66 foot widths and that the unused road right-of-way proposed to be vacated does not and will not contribute to the City’s transportation plan and that the area requested to be vacated does not and will not serve any present or future public purpose.
City Administrator Brethorst presented the Affidavit of Publication of Notice of Hearing, the Affidavit of Posting of Notice on July 30, 2012, and the Affidavit of Mailing of Notice to all property owners located within 350 feet of the property proposed to be vacated, which occurred on August 10, 2012.
There being no public input, the public hearing was closed at 6:06 p.m.
Police Chief John Jensen presented the Police Department’s July report. Chief Jensen noted that 16 citations were written for the month of July 2012. He stated there were 255 calls for service during this month compared to 332 for July of 2011. The year-to-date number of calls is 1634, compared to 1977 in 2011. A total of eight Golf Cart/ATV permits have been issued to date. Chief Jensen updated the Council on the request to changing out stop and yield traffic sign at various locations.
City Attorney Scott Dymoke reported on the projects he has been working on for the City:
1. Peterson House: Office work preparing for hearing on petition for costs of razing the Peterson house. Attended hearing on petition with City Administrator. Served copies of the Court’s order approving costs on interested parties.
2. Advised City staff on process for hearings on proposed plat, proposed Conditional Use Permit, and proposed street vacation in connection with development of Overland Dollar project.
City Administrator Brethorst presented the General Fund Financial Second Quarter Report. He noted that overall expenses were at 54% of total budget. Revenues are typically below budget due to the City not receiving any Local Government Aid until July of each year, as well as only receiving a portion of the May tax settlement within the first half of the year. He felt that the budget is at about the level expected for this time of year.
Mayor Vogel noted that MMUA has submitted correspondence regarding their safety program costs for the coming year. This past year the program cost $8,675 plus JTS of $2,200. The cost for this coming year will be $9,300 plus JTS. Contracts will be forthcoming A motion was made by Mr. Finken, seconded by Mr. Klasen and unanimously carried approving the contract.
Director Walz reported on the Planning and Zoning Commission’s August 16 Meeting. In addition to the two public hearings addressed later in this agenda, the Commission addressed the proposed installation by Munson Feed Company Inc. of a corn dump/unloading pit adjacent to its large corn storage bin and the re-interpretation of the Zoning Ordinance regarding acceptable fencing materials. The Commission has determined that treated wood is an acceptable material for fencing; however, it must be painted within one year of installation. The City will monitor this to ensure that the fence is painted in the allotted time frame. Director Walz also commented that the County is focusing on three issues at Rose Park/Melrose Community LLC those being vacant mobile homes, the storm shelter and water runoff.
Stearns County Deputy County Attorney Brenda Theis, Stearns County Environmental Service Member Hank Schreifels and John Tracy and Director Walz meet with Park owner Jeff Bonner to discuss the ongoing issues. Mr. Walz had put together a 14 point letter outlining the issues in the Park including vacant homes, lack of a storm shelter, garbage, standing of water, poor roads, along with numerous other items. The County focused the meeting on the storm shelter and vacant homes; however, no immediate action was taken. Director Walz also commented on the desire of the Melrose Food Shelf Board to locate to different facilities.
Mayor Vogel noted that after a review of the cost associated to loads of water, it is estimated to cost $65-$75 on average for water, wages, fuel, insurance. The City currently charges $150 per load of water. (example usages: fill pools and cool turkey barns). Based on cost of service, it is recommended to reduce the flat fee of $150 per load to $75 effective July 1, 2012. A motion was made by Ms. Mayers, seconded by Mr. Christenson and unanimously carried approving the reduction of cost per load of water from $150 per load to $75 per load effective July 1, 2012.
Mayor Vogel reported that correspondence has been received from the Transportation Committee requesting the City again contribute $2,500 for the continuation of the Tri-Cap bus service. The bus service is for the general public and is a great asset to the Melrose community. The City’s 2012 Budget includes an allocation of $2,500. A motion was made by Mr. Finken, seconded by Ms. Mayers and unanimously carried approving the donation request.
Earlier in the meeting, the Council held a public hearing on the petition of Twin Pines Catering Co (Steve Danzl) for the vacation of part of the North Side of Kraft Drive SE adjacent to Parcels 66.36421.0000 and 66.36410.0000 in the City of Melrose, Stearns County, Minnesota reserving an easement for drainage and utility purposes over, under and across thereof. The Council to consider taking action on the request of Twin Pines Catering Co (Steve Danzl) for the vacation of part of Kraft Drive SE adjacent to the proposed plat of Overland Dollar Addition. Whether taking action to approve or deny the request, the Council should cite the basis for its decision in the form of a Findings of Fact statement or a resolution. If it decides to approve the request, it must determine that the municipal property proposed to be vacated does not and will not serve any present or future public purpose.
Ms. Mayers introduced Resolution No. 2012-37, Resolution Vacating a Part of the North Side of Kraft Drive SE Adjacent to Parcels 66.36421.0000 and 66.36410.0000 in the City of Melrose, Stearns County, Minnesota Proposed to be Platted as Part of Overland Dollar Addition. The motion was seconded by Mr. Finken with a roll call vote recorded as follows: For: Council Members Mayers, Finken, Klasen, Christenson, and Mayor Vogel; Against: None. A copy of the resolution is on file in the City Administration Office.
Mayor Vogel next reported that at the Planning and Zoning Commission’s August 16 meeting, a public hearing was held to consider the proposed two-lot Preliminary/Final Plat of Overland Dollar Addition, submitted by Twin Pines Catering Co (Steve Danzl). The proposed plat consists of adjacent parcels 66.36421.0000 and 66.36410.0000 respectively located at 233 Kraft Drive SE and 375 Kraft Drive SE. These two parcels are zoned C-2, Commercial Highway. The property adjacent to the west of the proposed plat (SPIRITZ Liquors) is also zoned C-2, Commercial Highway. The property immediately adjacent to the east consists of three R-1, Residential properties respectively owned and occupied by Don and Helen Van Drehle, Joe and Joyce Beckermann, and Paul and Jeanette Spaeth. North of the proposed plat across 4th Street SE are residentially owned and occupied properties. South of the proposed plat across Kraft Drive SE are C-2, Commercial Highway properties occupied by US Bank and Burger King restaurant and an R-1, Residential vacant parcel owned by Bernard and Diane Nathe.
Twin Pines Catering Co (Steve Danzl) has submitted a petition to the Council for the vacation of a 17-foot wide linear portion of the north side of Kraft Drive SE adjacent to the respective south sides of parcels 66.36421.0000 and 66.36410.0000 which will be considered by the Council following its public hearing on the request at its meeting on August 23. In anticipation of that request receiving Council approval and since in 1986 a similar request was approved as part of the Mielke Addition plat located immediately west of the proposed plat, the area which is requested to be vacated and which is necessary for the desired and proper development of the anticipated uses of the area proposed to be platted is, therefore, included in the proposed plat.
Twins Pines Catering Co (Steve Danzl) has already undertaken, on Lot 1 of the proposed plat, construction of a restaurant facility containing approximately 6,400 square feet which is scheduled for completion in October 2012. Following approval of the proposed plat and the requested vacation of part of Kraft Drive SE, the Fall construction of a 9,100 square foot retail sales facility is proposed for Lot 2. A motion was made by Mr. Klasen, seconded by Ms. Mayers and unanimously carried concurring with the recommendation of the Commission that the plat of Overland Dollar Addition be approved provided the requested vacation of part of Kraft Drive SE receives Council approval.
Mayor Vogel then noted that following the plat related public hearing, the Commission held a public hearing that same evening to consider the request of Overland Properties LLC for a Conditional Use Permit in accordance with City of Melrose Zoning Ordinance 1989-1-A, as Amended, Section 222.04 Uses by Conditional Use Permit in the C-2, Commercial Highway District. The purpose of the request submitted by Overland Properties LLC is to construct and lease for operation a retail sales facility containing 9,100 square feet. The proposed facility would be constructed at 375 Kraft Drive SE on Lot 2 of the proposed plat of Overland Dollar Addition consisting of the current adjacent parcels 66.36421.0000 and 66.36410.0000. As proposed, the adjacent property owners would include: Twin Pines Catering Co (Steve Danzl’s C-2, Commercial Highway zoned property to the west); the three R-1, Residential properties respectively owned and occupied by Don and Helen Van Drehle, Joe and Joyce Beckermann, and Paul and Jeanette Spaeth to the east; the two properties south across Kraft Drive SE including the C-2, Commercial Highway parcel on which the Burger King restaurant is located and the vacant R-1, Residential parcel owned by Bernard and Diane Nathe; and to the north across 4th Street SE are several residentially owned and occupied properties.
According to Melrose Zoning Ordinance No. 1989-1-A, although the intent of the Commercial Highway District is to provide appropriate areas for commercial establishments which are oriented to the motoring public or which require large sites for off-street parking or the display of merchandise, and which are not necessarily compatible with the desired character of the Downtown District, the identified permitted uses for this District focus on commercial establishments which are oriented to serving the motorist such as eating places and motels. For the Commercial Highway District, the Zoning Ordinance identifies various uses, both private and public, which are allowable by Conditional Use Permit. The Ordinance also states that other uses are allowable if they are similar nature to those stated and which, in the opinion of the Council and after review and recommendation by the Commission, will not be detrimental to the integrity of the District.
The site plan for the proposed development for which the Conditional Use Permit is being requested indicates the construction of an eight foot high wooden fence in the 25 foot-wide buffer along the east property line to screen the commercial development from the three adjacent residential neighbors. The neighbors are requesting that the developer give consideration to eliminating the fence and substituting the planting of trees for screening purposes. This request has been relayed to the developer. A motion was made by Mr. Christenson, seconded by Ms. Mayers and unanimously carried concurring with the recommendation of the Commission that the request of Overland Properties LLC for a Conditional Use Permit to construct a retail sales facility containing 9,100 square feet be approved provided the requested plat of Overland Dollar Addition receives Council approval.
City Administrator Brethorst stated that in accordance with GASB rules, if the City of Melrose designates funds for a special purpose it must do so via resolution. Therefore, Melrose has made the final refunding payment on the 2004 GO Improvement Bond/Fund #503. (Kraft Drive, Daylight Court, Industrial Park and misc. other projects) According to debt payment projections, staff recommends transferring any remaining balances after payment to 2011 Refunding Bond/Fund #506. Staff recommends transferring $153,337.52 from the 2004 GO Improvement Bond Improvement debt service fund to the 2011 Refunding Bond/Fund #506.
Ms. Klasen introduced Resolution No. 2012-38, 2012 Capital Balance Transfer 2004 GO Improvement Bond. The motion was seconded by Mr. Finken with a roll call vote recorded as follows: For: Council Members Klasen, Finken, Mayers, Christenson, and Mayor Vogel; Against: None. A copy of the resolution is on file in the City Administration Office.
Public Works Director Harren noted that as a follow-up to the July 19 meeting, staff has further researched the past history on the City provided yard waste dump site. After further discussion, it was the consensus of the Council to not take further action on this item.
Mayor Vogel stated that a notice was published informing residents that any petitions requesting public improvements for the year of 2013 must be filed with the City Clerk no later than August 8, 2012. The petitions for improvements such as sanitary sewer, water mains, street, and curb and gutter will be given consideration for improvement in 2013. No petitions have been received.
Mayor Vogel noted that the Council, at its March 15 meeting, authorized a Cost Analysis of Retirement Coverage in the State-wide Volunteer Firefighter Retirement Plan (SVFRP). As per the PERA estimates of ongoing costs, the Fire Relief Association and staff recommend entering into the SVFRP administered by PERA. This recommendation is based on the August 9, 2012 report from Minnesota PERA.
According to the actuary tables as developed by PERA, an increase to the Volunteers Firefighters would be possible without any additional City contribution based on their analysis and assumptions. The Department members currently receive $1,250 per year placed into their retirement accounts. The PERA estimates are based on a 6% rate of return. According to their estimates, the City could authorize $1,500 annually without additional public contribution. The Council, at its July 19 meeting, approved Schedules I & II authorizing the $1,500 per year pension benefit level.
If the City enters into this program, it is irreversible unless the State Legislature passes special legislation to allow it. Plus, the members would be locked in at its current contribution levels for the next five years.
Ms. Mayers introduced Resolution No. 2012-39, Resolution Opting to Join the Voluntary Statewide Lump-Sum Volunteer Firefighter Retirement Plan Provide and authorize the Melrose Fire Relief Association to enter into the State program. The motion was seconded by Mr. Christenson with a roll call vote recorded as follows: For: Council Members Mayers, Christenson, Klasen, and Mayor Vogel; Against: None; Abstain: Council Member Finken due to a conflict of interest. A copy of the resolution is on file in the City Administration Office.
Mayor Vogel stated that the Council will meet on Thursday, August 30 at 5:00 p.m. at the Melrose City Center to receive presentations from engineering firms outlining their company’s qualification to serve as Consulting Engineer for the City and to discuss the Melrose Police Department staffing. Mr. Brethorst noted that staff is coordinating a City-wide bus tour for Council Members at the September regular meeting; therefore, staff is recommending the start time be moved from 6:00 p.m. to 5:00 p.m. that evening. Also, Warrior Boats has extended an invitation to the Council, MADA, and Utilities Commission for a tour of their facilities on Thursday, October 18 at 5:00 p.m. A motion was made by Mr. Finken, seconded by Mr. Christenson and unanimously carried approving the change in start time of the September meeting and scheduling of the Special Joint Meeting for Thursday, October 18 at 5:00 p.m.
Mayor Vogel reported that representatives of Warrior Properties LLC / Warrior Boats Inc. have informed City staff that the manufacturer is considering the September construction of a second facility adjacent, but not attached, to the side of the company’s existing facility. At the request of the company, a contractor has begun moving dirt. Staff will present the company’s request for possible development assistance which has been presented to both MADA and its Development Consultant, Traci Ryan of David Drown Associates. Staff will present MADA’s recommendation regarding development assistance which is to cap that assistance at 45% of the TIF increment received on the new construction. A motion was made by Ms. Mayers, seconded by Mr. Christenson and unanimously carried concurring with MADA’s recommendation capping the development assistance at 45% of the TIF increment received on the new construction emulating the same assistance as in the original TIF district.
When the City sold the four lots in Block 6, Melrose I-94 Industrial Park to Warrior Properties LLC, each of the lots was surrounded by utilities in drainage easements. To proceed with the proposed expansion, it is necessary that the interior east-west and north-south easements be vacated to allow the proposed expansion. The Council to schedule a public hearing on the proposed vacation for 6:00 p.m. on September 13, 2012. A motion was made by Mr. Klasen, seconded by Ms. Mayers and unanimously carried scheduling the public hearing on the proposed vacation for Thursday, September 13, 2012 at 6:00 p.m.
The following informational items were discussed:
a. Deleted
b. Utilities Commission’s July 9 Regular Meeting minutes.
c Building Permit and Summary Log for Second Quarter 2012. The total number/value of building permits issued in the second quarter for each of the past five years were:
2012 2011 2010 2009 2008
52 54 46 40 54
$1,509,800 $1,927,996 $8,267,581 $1,019,772 $5,606,690
The total number/value of building permits issued year-to-date for the first two quarters for each of the past five years were:
2012 2011 2010 2009 2008
75 71 53 58 73
$1,725,360 $2,066,523 $8,353,681 $9,677,472 $9,329,946
*Note: Prior to 2009, building permit totals included permits issued for demolition, moving, zoning and signs. These are no longer included because these activities are not subject to the Building Code nor does Building Official Dan Marthaler generally get involved in them.
A motion was made by Mr. Finken, seconded by Ms. Mayers and unanimously carried that the meeting be adjourned at 6:50 p.m.
Patricia Haase, City Clerk