The Melrose City Council met in a Regular Meeting on Thursday, December 11, 2014 at 6:00 p.m. at the Melrose City Center pursuant to due notice being given thereof. Present were Council Members Dick Christenson, Joe Finken, Tony Klasen, Jenny Mayers, Mayor Tim Vogel, City Administrator Michael Brethorst, and City Clerk Patti Haase. Mayor Vogel 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. Christenson, seconded by Mr. Klasen and unanimously carried that the agenda be approved 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: Approval of the following:
a. The minutes from the Council’s November 13 Special Meeting, the November 20 Special Meeting, and the November 20 Regular Meeting. b. List of bills in the amount of $107,054.94.
c. List of investments for the month of November.
d. The Council to give consideration to approval of the following tobacco licenses: 1. Coborn’s Inc. Coborn’s Store; 2. Melrose 1 Stop; 3. Casey’s General Store; 4. SPIRITZ Liquor, Inc.; 5. Coborn’s Inc. Coborn’s Liquor; 6. Dollar General
Minnesota law requires cities to obtain proof that all license holders provide workers’ comp insurance for their employees. Also, the City must obtain licensees’ social security numbers, and Minnesota and federal tax identification numbers for the Department of Revenue’s use.
Approval of license is contingent upon staff receiving the signed application, all required documentation and the $75 license fee. The licenses are effective January 1, 2015.
e. Donation Resolutions: 1) Resolution No. 2014-42, donation in the amount of $3,333 which is the second installment 2013 pledge of $10,000 to be paid over three years from the Melrose Lions towards the City of Melrose Ambulance Department.
2) Resolution No. 2014-46, donation in the amount of $50 from Marita Schmitz towards the Melrose Fire Department.
3) Resolution No. 2014-47, donation in the amount of $913 from Loren Pundsack Collision Center towards the Melrose Fire Department truck bed liner, running boards and guards.
f. Gambling Resolution: 1) Resolution No. 2014-50, Resolution Approving Gambling License to the Melrose Lions for an exemption from lawful gambling license to conduct a raffle on Sunday, January 18, 2015 at 211 5th Avenue SE in Melrose.
A motion was made by Mr. Finken, seconded by Ms. Mayers and unanimously carried to approve the consent agenda as submitted.
Police Chief Craig Maus presented the Police Department’s November report. He noted that a total of 15 citations were issued in the month of November. There were 56 verbal warnings and 5 written warnings. Chief Maus stated there were 164 calls for service during this month compared to 283 for November of 2013. The year-to-date number of calls is 2,507 compared to 2,522 in 2013.
City Attorney Scott Dymoke reported on projects he has been working on for the City.
• Ramirez Annexation: Received order approving annexation of Ramirez property from Minnesota Municipal Boundary Adjustment Unit. Filed copies of the order with the State, County, and Township officials.
• New Substation: Reviewed survey issues with Kyle Klasen of WSB and City staff. Prepared legal description for use in ordinace rezoning property to Public Use.
Planning and Development Director Walz provided an update on upcoming community events.
The Council then held a public hearing on the 2015 Budget and Tax Levy. The public hearing is to allow public comment and questions.
At the September 11 meeting, the Council first reviewed the proposed 2015 Budget. The preliminary property tax levied to the County at that time was: General property tax: $973,000; Debt Levy: 2008 Fire and Ambulance Station Lease Revenue Bonds: $90,000; 2011A GO Refunding Bonds: $275,000.
Since that time, the Council and staff have reviewed the budget to determine where cuts could be made or revenues increased in an effort to reduce the property tax levy and arrive at a balanced budget. Based on those meetings and the cuts proposed, the general levy is proposed to be reduced to $1,301,000, which is $55,000 more than the final 2014 levy of $1,246,000. This increase is due to an increase in debt payments. According to the information received from the County, the proposed tax capacity (net of JOBZ) for the City is estimated at $1,796,602. This will result in an estimated tax capacity rate of 70.280%, which is a slight increase over 2014. The 2014 tax rate was 69.628%. The final 2015 tax capacity rate was 70.280%, resulting in a tax capacity rate increase of 0.652% for 2014.
According to law, the City now must certify the levy as set in September or it may reduce the levy. It cannot set a levy higher than the proposed levy, which was certified with the County Auditor in September. The proposed general levy of $936,000 plus debt levy of $365,000 results in a total levy of $1,301,000.
The budget and levy to be adopted at the hearing to meet the State law requirements. After the final levies are adopted, they must be certified with the County Auditor prior to December 31.
Mr. Klasen introduced Resolution No. 2014-49, Resolution Adopting the Tax Levy and 2015 Budget. 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.
Finance Director Beuning next reported that per Minnesota Statutes Section 462.356 Subd. 2, which requires that the City’s proposed real property acquisitions and dispositions be reviewed by the Planning and Zoning Commission for compliance with the Comprehensive Plan, also applies to the City’s proposed Capital Improvements. In conformance with this requirement, the Planning and Zoning Commission, at its November 7 meeting, reviewed for written comment to the Council the compliance with the Comprehensive Plan of the proposed 2015 non-equipment related expenditures, along with those proposed for 2016, contained in the Five Year Capital Improvement Plan and Levy Information Years 2015-2019. For reference and comparison, present Year 2014 was also included in the Commission’s review. The Commission determined that the proposed non-equipment related expenditures proposed for Years 2015 and 2016 are in compliance with the City’s Comprehensive Plan and authorized the Chair’s execution of correspondence to the Council evidencing its findings.
A motion was then made by Mr. Finken, seconded by Ms. Mayers and unanimously carried to adopt the 2015-2019 Five Year Capital Improvement Plan.
There was no public input at the public hearing; the hearing was closed at 6:25 p.m.
Mayor Vogel stated that at its November meeting acting upon the request of the Melrose Public Utilities Commission (the “Commission”), the Council held a public hearing on and subsequently approved the vacation of that part of the undeveloped road right-of-way of 6th Avenue SW located between 1st Street SW and 2nd Street SW. By operation of law, the portion of this vacated part of 6th Avenue SW which abuts City-owned Parcel 66.36861.0000 located at 511 2nd Street SW became part of this Parcel. In addition to eliminating this last remaining block of the dedicated, but undeveloped, road right-of-way of 6th Avenue SW, which is neither used nor needed both now or in the future, a result of the vacation of this road right-of-way was to increase the physical size of Parcel 66.36861.0000 with the attachment of the abutting portion of the vacated road right-of-way. Increasing the size of Parcel 66.36861.0000 with the attachment of a portion of the vacated road right-of-way of 6th Avenue SW will better accommodate and facilitate any future expansion of the 30 MVA high voltage electrical substation facility planned for installation at this site in 2015.
In preparation for the installation of the 30 MVA electrical substation facility, the City, in behalf of the Commission, submitted to the Planning and Zoning Commission (the “P&Z”) an Application for Consideration of a Planning Request for the Rezoning of Parcel 66.36861.0000, which now includes the abutting portion of the vacated 6th Avenue SW road right-of-way, (the “Property”). [With the Rezoning request, the City, in behalf of the Commission, also submitted Applications for Consideration of a Planning Request for a Variance and a Conditional Use Permit for the Property.] The Rezoning request is for the zoning of the Property to be changed from R-1, Residential to P, Public-Institutional to better reflect that City’s public ownership and its proposed public use of the Property. At its November 13 meeting, the P&Z held the required public hearing on the requested Rezoning and subsequently took action approving Resolution No. P&Z 2014-003, A Resolution Recommending Council Approval of Case No. 2014-300 Application from City of Melrose in Behalf of Melrose Public Utilities Commission for Adoption of 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 66.36861.0000 Owned by the City of Melrose from R-1, Residential to P, Public-Institutional. In its findings, P&Z determined that the vacant, undeveloped and overgrown Property, which contains approximately 39,675 square feet, is presently located at the edge of a developed R-1, Residential District, abuts a large undeveloped wetland and a mobile home park containing approximately 70 lots and 50 mobile homes, and that the proposed Rezoning to P, Public-Institutional properly recognizes the City’s ownership and proposed public use of the Property.
Ms. Mayers introduced Ordinance No. 12-11-2014-1, 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 66.36861.0000 Owned by the City of Melrose from R-1, Residential to P, Public-Institutional. 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.
Mayor Vogel stated that this item addresses the two-fold Variance request submitted by the City in behalf of the Commission to Planning and Zoning Commission as noted in the previous Appendix Item #7a. This Variance request is to allow the approximate 1,120 square foot switch gear and control building of the proposed 30 MVA electrical substation facility to encroach five feet into the required minimum 15 foot east side yard setback as is prescribed for the P, Public-Institutional Districts by 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 (the “Zoning Ordinance”) and to encroach 15 feet into the required minimum 25 foot rear (north) setback as is prescribed by the aforementioned Zoning Ordinance. It is the belief and position of the Commission and Utilities staff that granting the Variance request and allowing the setback encroachments will allow maximum utilization of the site for placement of the 30 MVA electrical substation facility and, more importantly, allow ample space and flexibility for future growth. At its November 13 meeting, the P&Z held the required public hearing on the Variance request and subsequently took action approving Resolution No. P&Z 2014-004, A Resolution Recommending Council Approval of Case No. 2014-100: Application from City of Melrose in Behalf of Melrose Public Utilities Commission to Grant a Variance from 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 Allowing Side Yard and Rear Yard Structure Setback Encroachments on City-owned Parcel 66.36861.0000 to Accommodate Placement of a 30 MVA Electrical Substation Facility. In its findings, the P&Z determined that the proposal to use the Property for the 30 MVA electrical substation facility puts the Property to use in a reasonable manner; that the Property presents unique circumstances in terms of its ability to meet the present and anticipated future needs of the proposed substation facility, its related structures and equipment, and its possible future growth as evidenced by its larger size, its location near the Xcel Energy transmission line, its nearly level topography, and the sizeable and likely undevelopeable vacant wetland located to its west; and that it will not alter the essential character of the locality because the substation will be located at the edge of the residential district, the substation will be adjacent to the large vacant wetland, and the Stearns County Assessor’s Office has stated that nowhere in Stearns County has the presence of electrical substations affected the market value of homes in adjacent residential neighborhoods. In addition, the findings noted that the Variance request is consistent with the City’s Comprehensive Plan and that it is in harmony with the purposes and intent of the City’s Zoning Ordinance.
The Council concurred with the recommendation of P&Z to grant the Variance request for the Property by adopting Resolution No. 2014-044, A Resolution Approving Case No. 2014-100: Application from City of Melrose in Behalf of Melrose Public Utilities Commission to Grant a Variance under Section 1000 Variances of 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 Allowing Side Yard and Rear Yard Structure Setback Encroachments on City-owned Parcel 66.36861.0000 to Accommodate Placement of a 30 MVA Electrical Substation Facility.
Mr. Klasen introduced Resolution No. 2014-44, A Resolution Approving Case No. 2014-100: Application from City of Melrose in Behalf of Melrose Public Utilities Commission to Grant a Variance under Section 800 Variances of 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 Allowing Side Yard and Rear Yard Structure Setback Encroachments on City-owned Parcel 66.36861.0000 to Accommodate Placement of a 30 MVA Electrical Substation Facility. The motion was seconded by Mr. Christenson with a roll call vote recorded as follows: For: Council Members Klasen, Christenson, Mayers, Finken, and Mayor Vogel; Against: None.
Mayor Vogel remarked that this item addresses the Conditional Use Permit request submitted by the City in behalf of the Commission to the P&Z as noted previously in Item #7a. This request is for a Conditional Use Permit under Section 241.05(1) and (2) P, Public-Institutional: Uses by Conditional Use Permit and under Section 800 Conditional Use Permits of the Zoning Ordinance to allow for the placement on the Property of a 30 MVA high voltage electrical substation facility with a switchgear and control building and related structures and equipment. The Zoning Ordinance requires the issuance of a conditional use permit prior to proceeding with the proposed 30 MVA electrical substation facility project. At its November 13 meeting, the P&Z held the required public hearing on the Conditional Use Permit request and subsequently took action approving Resolution No. P&Z 2014-005, A Resolution Recommending Council Approval of Case No. 2014-401: Application from City of Melrose in Behalf of Melrose Public Utilities Commission to Issue a Conditional Use Permit under Section 241.05(1) and (2) P, Public-Institutional: Uses by Conditional Use Permit and under Section 800 Conditional Use Permits of 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 Allowing the Use of City-owned Parcel 66.36861.0000 for the Placement of a 30 MVA Electrical Substation Facility. In its findings, the P&Z determined that the requested Conditional Use Permit for the proposed use of the Property for a 30 MVA electrical substation facility met the Standards for Granting Conditional Use Permits excluding those applicable to the Flood Plain District since the Property is not located in such a district. Those standards which were met included:
.01: The establishment, maintenance, or operation of the conditional use will not be detrimental to or endanger the public health, safety, morals, comfort or general welfare.
.02: The conditional use will not be injurious to the use and enjoyment of other property in the immediate vicinity for the purposes already permitted, nor substantially diminish and impair property values within the neighborhood.
.03: The establishment of the conditional use will not impede the normal and orderly development and improvement of surrounding property for uses permitted in this District.
.04: Adequate utilities, access roads, drainage and necessary facilities have been or will be provided.
.05: Adequate measures have been or will be taken to provide ingress or egress so designed as to minimize traffic congestion in the public streets.
.06: The conditional use shall, in all other respects, conform to the applicable regulations of the district in which it is located.
The Council concurred with the recommendation of P&Z to grant the Conditional Use Permit request for the Property by adopting Resolution No. 2014-045, A Resolution Approving Case No. 2014-401: Application from City of Melrose in Behalf of Melrose Public Utilities Commission to Issue a Conditional Use Permit under Section 241.05(1) and (2) P, Public-Institutional: Uses by Conditional Use Permit and under Section 800 Conditional Use Permits of 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 Allowing the Use of City-owned Parcel 66.36861.0000 for the Placement of a 30 MVA Electrical Substation Facility.
Mr. Christenson introduced Resolution No. 2015-45, A Resolution Approving Case No. 2014-401 Application from City of Melrose in Behalf of Melrose Public Utilities Commission to issue a Conditional Use Permit under Section 241.05(1) and (2) P, Public Institutional: Uses by Conditional Use Permit and under Section 800 Conditional Use Permits of City of Melrose Zoning Ordinances NO 1989-1-A, as Amended and Adopted by Reference as Chapter 153 of the City of Melrose Code of Ordinances Allowing the Use of City-owned Parcel 66.36861.000 for the Placement of a 30 MVA Electrical Substation Facility. 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.
The City has received the final tax increment payment payable for the City’s Tax Increment Financing (“TIF”) District No. 3.1 which Stearns County identifies as TIF Project #77: the Melrose Park Place Townhomes Limited Partnership Project. Stearns County has requested that this TIF District be decertified before year-end. The Pay-As-You-Go Tax Increment Revenue Note dated July 12, 1999 in the principal amount of $148,450 plus interest at the simple, non-compounded rate of 9.0% per annum and the Development Agreement of October 23, 1997 specify a 15.5 year repayment period consisting of 31 payments. Over the required 15.5 year repayment term, the total of the TIF increments applied to principal and interest and paid to the Developer was $152,355.49. The construction of this 24-unit affordable rental housing project by the Developer in 1997 was and continues to be a commendable undertaking which serves the community well. This facility remains a welcome and needed component of the City’s housing market.
Mr. Klasen introduced Resolution No. 2014-49 A Resolution of the Melrose City Council Approving the Decertification of Tax Increment Financing District No. 3.1, A Qualified Housing Tax Increment Financing District Identified by Stearns County as Project #77, Park Place Townhomes of Melrose Limited Partnership. 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.
Mayor Vogel noted that WSB & Associates has submitted a proposal to conduct the work on the planned 2015 Sanitary Sewer upgrades. The estimated time line for this project is: Plans and Specifications – February; Authorize Bids: February; Award Bids: March; Project Commencement – Summer 2015. The Commission, at its December 8 meeting, authorized WSB & Associates to prepare the plans and specifications.
A motion was made by Mr. Finken, seconded by Ms. Mayers and unanimously carried concurring with the Commission authorizing WSB & Associates to prepare the plans and specifications.
Mayor Vogel noted that on June 28, 2013, the City received $585,000 related to the sale of CentraCare. At the March 20, 2014 meeting, the Council approved allocating $70,000 of the funds received from the CentraCare property per Resolution No. 2014-12 to the bridge improvement project. In that resolution, the funds were committed in Fund 507. At the October 24, 2013 meeting, it was the consensus of the Council to allocate $300,000 of the monies from the CentraCare funds to offset the costs of the bridge project.
In accordance with GASB No. 54, the Council is requested to approve the transfer of funds totaling $370,000 from Fund 203 to Fund 432, and commit those funds to be used for bridge improvement purposes.
A motion was made by Mr. Christenson, seconded by Mr. Klasen and unanimously carried adopting Resolution No 2014-48, Committing Fund Balances for Specific Purposes.
Mayor Vogel stated that WSB & Associates has submitted its engineering proposal for the Kraft Drive and 5th Avenue Projects. WSB to conduct the work as outlined in the project. The estimated timeline for the project is outlined in the proposal for engineering.
A motion was made by Mr. Klasen, seconded by Mr. Finken and unanimously carried authorizing WSB & Associates to develop final plans and specifications.
Consideration was then given to the proposed 2015 meeting schedule. The meetings for all months are scheduled for the third Thursday of the month, with the exception of January which will have a meeting on both the second and third Thursday of that month. The hearing on the proposed 2016 budget and levy is proposed to be set for Thursday, December 10, 2015. This was agreeable to the Council.
Mayor Vogel noted that staff has updated the 2015 Fee Schedule. In an effort to recover costs associated to processing planning fees, adjustments are needed to recover all costs. It has been over 10 years since the last fee adjustment. It is proposed to increase to $300 versus the $250. The changes would affect Annexation, Appeal / Amendment, Conditional Use Permit, Variances, Rezoning Fee, Vacation of Right-of-Way and Interim Use Permits. The costs that are currently not being recovered in full are the Publication and Legal reviews required to process the various applications. It was also suggested that the rental license fee be restated from $40 per dwelling plus $10 for each additional unit to $40 per parcel plus $10 for each additional dwelling unit. In addition in cases of domestic violence the Police Department is to confiscate and store weapons until the case has been closed and the individual is allowed to reclaim the weapon. Chief Maus is recommending a $25 dollar seizure fee with an additional $5 per month.
Ms. Mayers introduced Ordinance No. 12-11-2014-2, An Ordinance Summarizing and Reaffirming Fees for City Licenses, Permits and Services, Establishing a Fee Schedule of Fines and Providing for Subsequent Review, Modification and Amendment. Fees to be set as per Exhibit A. The motion was seconded by Mr. Christenson with a roll call vote recorded as follows: For: Council Members Mayers, Christenson, Finken, Klasen, and Mayor Vogel; Against: None
Mayor Vogel stated that in the past the visiting German students have attended the February Council meeting. At the request of Council Member Mayers and German Teacher Stefan Rink, the Council to discuss hosting an open house for the visiting German student on Tuesday, February 17 or Friday, February 20 in lieu of attending the Council meeting. This would allow it to be a more informal event and greater community participation. By consensus, the Council scheduled to host an event for the visiting German students on Tuesday, February 17 at 6:30 p.m. The following informational items were discussed:
a. At the Council’s first meeting in January 2015, consideration will be given to making appointments to the various boards and commissions. Applications are available at the Melrose City Center. Terms are expiring on the following boards and commissions:
• Housing and Redevelopment Authority, one member (five-year term), Term expiring: Melvin Roehrl
• Planning and Zoning Commission, one member (four-year term), Term expiring: Jeanne Kraemer;
• Council Representative: this is an annual appointment, Tony Klasen is the Council Representative
• Melrose Area Development Authority, one member, six-year term, Term expiring: George Jensen
• Council Representative: this is an annual appointment, Jenny Mayers is the Council Representative
• Public Utilities Commission Council Representative, this is an annual appointment, Dick Christenson is the Council Representative Applications received for the various Boards, Commissions, and Committees:
• Incumbent Mel Roehrl is not seeking reappointment to the Melrose Housing and Redevelopment Authority. An application has been received from Matt McDonald.
• Incumbent Jeanne Kraemer is not seeking reappointment to the Planning and Zoning Commission. An application has been received from Shawn Mayers and Adam Paulson.
• Incumbent George Jensen is seeking reappointment to the Melrose Area Development Authority.
b. Charter Communications has provided notice that they will be making a price adjustment to the Broadcast TV Surcharge. This equates to a $.25 increase to the Surcharge. c. Utilities Commission’s November 10 Regular Meeting minutes.
d. The following are schools and/or conferences where registrations were made: 1. Newly Elected Officials Conference – February 20-21. Attending: Council Member Josh Thieschafer. 2. ACS 1099 Webinar Training, Attending: Accounting Clerk Stacy Funk.
3. MCFO Region III Conference December 16 at the Starbuck Community Center. Attending City Clerk Patti Haase.
e. The League of Minnesota Cities Insurance Trust has approved rates and several coverage changes for the upcoming underwriting year. In addition, the Board approved retuning a $9.5 million dividend to members of the property/casualty program this year.
f. CenterPoint Energy has requested adjustments to the rates for natural gas. Additionally, the temporary rate increases that were allowed by the State Utilities Commission allows for an estimated average rebate of $11 per residential home as the final rate is less than the proposed rates.
g. A gift of appreciation for service to the community was presented to Mayor Tim Vogel.
A motion was made by Mr. Vogel, seconded by Mr. Finken and unanimously carried that the meeting be adjourned at 7:15 p.m. Patricia Haase, City Clerk