The Melrose City Council met in a Regular Meeting on Thursday, February 16, 2012 at 5:30 p.m. at the Melrose City Center pursuant to due notice being given thereof. Present were Council Members Joe Finken, Dick Christenson, Jenny Mayers and Tony Klasen, 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.
A motion was made by Mr. Klasen, seconded by Mr. Finken and unanimously carried to approve the agenda as amended.
Trevor Wills spoke in favor of building a skate park in the City of Melrose.
The following items were considered for approval under the Consent Agenda:
a. the minutes from the Council’s January 19 Regular Meeting.
b. list of bills in the amount of $162,661.16.
c. list of investments for the month of January.
d. The following are Ambulance Department uncollectible accounts that have been submitted to Revenue Recapture (RR), collections or written off (w/o) as uncollectible accounts: Victor Doubek w/o, $816.00; Emily Jorday w/o, $70.79; Ruben Apodaca, collections, $1,032.00; Donna Klaphake (RR), $744.00; Gregory Lahr (RR), $1,274.40; Roman Forster(RR), $911.96; Daniel Obermyer (RR), $1,183.20; Amanda Ostendorf (RR), $999.75; Thrieus Nhebe, collections parent of minor, $612.00; Total $7,644.10.
e1. Resolution No. 2012-3, Resolution Approving Gambling License to the Melrose Area Chamber of Commerce for an exemption from lawful gambling license to sell pull tabs and conduct bingo and hold a raffle on July 5-7, 2012 at the Riverfest Celebration at 206 5th Ave NE in Melrose.
e2. Resolution No. 2012-5, Resolution Approving Gambling License to the Church of St. Mary’s for an exemption from lawful gambling license to hold a raffle on July 7, 2012 at the Sauk River Park 206 5th Avenue NE in Melrose.
e3. Resolution No. 2012-6, Resolution Approving Gambling License to the Church of St. Mary’s for an exemption from lawful gambling license to hold a raffle on December 31, 2012 at 211 5th Avenue SE, Melrose.
f. Authorization for the Melrose Fire Department to submit the necessary application for the 2012 Central MN EMS Region Communications Equipment Matching Funds Grant, which will match at 50% up to $1,000 per agency. Fire Chief Jeremy Kraemer will be submitting the application in the amount of $2,095 ($1,000 Grant/$1,095 Fire Department). Four of the five pagers have already been purchased; however, past purchases are eligible for grant consideration.
g. Quote from ACS for support of the financial, payroll and utility billing programs for the period of February 1, 2011 through January 31, 2012. This is a 1.6% increase over 2010. The total cost of $12,921.28 will be shared as follows: General: $4,522.44; Water: $1,292.13; Wastewater: $1,292.13; Electric: $5,814.58.
h. Since October 1994, the City has leased property from Stearns Electric Association for its westbound “Melrose” sign located along Interstate 94. Recent renewals of this lease have been for five-year periods at a cost of $10 per renewal term. The lease was last due for renewal on February 1, 2011 at which time the renewal date was overlooked by both Stearns and the City. Staff recommends the Council authorize the renewal of the lease for another five-year term beginning February 1, 2011 and terminating January 31, 2016 with which Stearns concurs.
i. Correspondence has been received from the Chamber of Commerce requesting the City again contribute $2,000 to be used for advertising costs incurred to promote the City for the Melrose Riverfest Celebration (formerly the Melrose Freedom Fest Celebration) to be held July 5-7, 2012. This amount was included in the 2012 budget. The Council to take action approving the donation for advertising purposes.
j. Brainesney Ortiz Camacho has submitted a letter of resignation from the Ambulance Department effective immediately. She has served on the Department since May 2011. The Council to accept Ms. Ortiz Camacho’s resignation and commend her for her service on the Department. There will be 17 members on the Department upon Ms. Ortiz Camacho’s resignation. The Ambulance Coordinator feels staffing is adequate and all shifts are able to be covered.
k. Resolution No. 2012-7 – donation of $1,000 from Melrose American Legion Post 101 towards the Riverfest Celebration.
A motion was made by Mr. Christenson, seconded by Ms. Mayers and unanimously carried to approve the consent agenda items.
The Council held a public hearing for the purpose of receiving input and taking testimony relating to (a) the proposed establishment of Municipal Development District No. 8, (b) the proposed approval of the Development Program relating thereto, (c) the proposed creation of Tax Increment Financing District No. 8-1, and (d) the proposed adoption of the Tax Increment Financing Plan relating thereto, all pursuant to and in accordance with Minnesota Statutes, Sections 469.124 to 469.134 and 469.174 to 469.1799, inclusive, as amended.
City Administrator Brethorst presented the Affidavit of Publication of the Hearing Notice which was published on February 1, 2012. Development Consultant Traci Ryan of David Drown Associates was in attendance to present the Development Program for Municipal Development District No. 8 and the Tax Increment Financing Plan for Tax Increment Financing District No. 8-1 (Danzl Restaurant Project).
This will be an Economic Development District, which is a nine-year district. She stated that, in establishing the TIF District, the City makes the following findings: 1. The TIF District qualifies as an economic development district.
2. The proposed development, in the opinion of the City, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future, and the increased market value of the site that could reasonably be expected to occur without the use of tax increment would be less than the increase in market value estimated to result from the proposed development.
3. The TIF Plan conforms to the general plan for development or redevelopment of the City as a whole.
4. The TIF Plan will afford maximum opportunity, consistent with the needs of the City as a whole, for the development of the Project Area by private enterprise.
There being no public input, the public hearing was closed.
Mayor Vogel presented Ms. Thostenson with a plaque in appreciation for her 31 years of service with the City/Utilities. Ms. Thostenson’s retirement date is February 24, 2012. The Council thanked and commended Karen for her dedication and hard work over the past 31 years.
The Council then welcomed the visiting teachers and students from Bühl, Germany. Mayor Vogel presented Franz Schmälzle a certificate bestowing upon Mr. Schmälzle the title of Honorary Citizen of Melrose. Mr. Schmälzle has returned to Melrose numerous times with students in the GAP program, an exchange program where students from Germany visit the Melrose School District and Melrose students visit Germany. This will be Mr. Schmälzle’s last visit to the City in this capacity.
Mayor Vogel also presented to the teachers, Franz Schmälzle and Angela Büchner, the Proclamation adopted at the Council’s meeting on January 19, along with a gift for the teachers and each student. Mr. Schmälzle also presented Mayor Vogel with a gift and expressed his appreciation for the special relationship between the two communities.
Administrator Brethorst presented the Police Department’s January report. He noted there were 206 calls for service during that month, compared to 209 for January 2011. A total of 20 citations were written for the month of January.
Administrator Brethorst reported that during the period from January 12, 2012 through February 9, 2012, the City Attorney has not given significant attention to any projects on behalf of the City of Melrose.
The Council gave consideration to Resolution No. 2012-4, Resolution Approving the Creation of the Municipal Development District No. 8, the Adoption of the Development Program Relating Thereto, the Creation of Tax Increment Financing District No. 8-1, and Adoption of the Tax Increment Financing Plan Relating Thereto. At its meeting on February 2, the Planning and Zoning Commission, as required by Minnesota Statutes, took action approving Resolution No. P&Z 2012-1, Resolution Recommending Approval of the Establishment of Municipal Development District No. 8, the Adoption of the Development Program Relating Thereto, the Establishment of Tax Increment Financing District No. 8-1 and Adoption of the Tax Increment Financing Plan Relating Thereto, whereby it determined that the development program and the finance plan for the proposed Danzl Restaurant Project will serve to complement the City’s plans for creation of development opportunities in the City and serve to promote the City’s development objectives.
Mr. Finken then introduced Resolution No. 2012-4, Resolution Approving the Creation of the Municipal Development District No. 8, the Adoption of the Development Program Relating Thereto, the Creation of Tax Increment Financing District No. 8-1, and Adoption of the Tax Increment Financing Plan Relating Thereto. 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: None. A copy of the resolution is on file in the City Administration Office.
City Administrator Brethorst noted that in cooperation with the City of Melrose and its Sister City Program commitment with Legden, Germany, the City has been approached by Loren Meyer and Simon Hellermann to sponsor a student shadow from Germany. The student shadow would serve as a cultural and professional exchange program to foster a better understanding of German and American culture. Additionally, the intern would assist City staff with various duties and special projects over a seven-day period. The Utilities Commission, at its February 13 meeting, approved the job shadow program not to exceed seven days.
A motion was made by Ms. Mayers, seconded by Mr. Finken and unanimously carried concurring with the Commission’s approval of the job shadow program not to exceed seven days.
The Council next gave consideration to approval of the following Temporary On-Sale 3.2% Malt Liquor License application: 1) Melrose Chamber of Commerce for the Riverfest Celebration – July 5-7, 2012. Staff recommended approval of the license be contingent upon receipt of the necessary certificates of insurance as to dram shop and general liability coverage. A motion was made by Mr. Christenson, seconded by Ms. Mayers and unanimously carried to approve the 3.2% Malt Liquor License Application contingent upon staff receiving all the necessary documents.
The City Administrator/Treasurer requested the Council give consideration to approving the quote received from the League of Minnesota Cities Insurance Trust (LMCIT) for workers’ compensation insurance for the period of March 7, 2012 through March 7, 2013. The net premium costs for the upcoming period are $58,083, which is a 5.26% increase over the 2011 quote of $55,180. The experience modification increased to 1.08 for the 2012-2013 coverage period from 1.06 for the 2011-2012 coverage period. There were no major changes in rates for any of the classifications. Staff recommended that the City again approve the regular premium option.
City Administrator Brethorst stated that the General Fund share of the premium is $38,519 and the Utilities’ share is $19,564 (compared to $39,976 and $18,204, respectively, for the past year). The Utilities Commission, at its February 13 meeting, took action approving the insurance quote. Administrator Brethorst noted that during the next renewal process staff will look at applying a deductible o the policy for potential cost savings. A motion was made by Mr. Finken, seconded by Ms. Mayers and unanimously carried to approve the workers comp insurance renewal quote from LMCIT in the amount of $58,083.
Mayor Vogel noted that Fire Chief Jeremy Kraemer has obtained quotes for the purchase of the following equipment: 1) Thermal Imager: MSA Evolution 5600 with truck charger with the low quote from Metro Fire in the amount of $5,911.50 + tax.
2) Extrication Tools (Jaws of Life), Metro Fire in the amount of $22,525 + tax – the low bid was from Great Plains Fire in the amount of $21,670 + tax (a difference of $855). However, the product from Great Plains Fire does NOT have a lifetime warranty and the product was inferior to that of Metro Fire; therefore, due to quality and warranty, the Department is recommending the purchase of the extrication tools from Metro Fire as the best value.
3) The Fire Department will also be purchasing a RAM monitor from Great Plains Fire in the amount of $2,348 + tax. This purchase is under the threshold of $3,000 that requires Council approval, so is being noted for informational purposes.
A motion was made by Ms. Mayers, seconded by Mr. Klasen and unanimously carried approving the purchase of the Thermal Imager from Metro Fire in the amount of $5,911.50 + tax and the Extrication Tools from Metro Fire as the best value in the amount of $22,525 + tax.
Mayor Vogel reported that the City received 75 applications for the Accounting Clerk position. The pool of candidates was first narrowed down by eliminating those applications that did not meet minimum requirements of the position. The remaining applications were then reviewed and rated by City Administrator Brethorst, Assistant City Administrator Thostenson, and Human Resources Technician Diane Gruber. From that process, eight applicants were selected to be interviewed. The interviews were conducted on February 6 and February 8 by Administrator Brethorst, Assistant Administrator Thostenson, and Human Resource Tech Gruber. Follow-up interviews were conducted on Monday, February 13. Administrator Brethorst noted that the applicant selected was Sue Rademacher who best fit the qualifications as outlined in the job descriptions.
Ms. Rademacher has been contacted and offered the position at Step 3 on the pay scale. Ms. Rademacher has accepted the position with formal notification forthcoming. A motion was made by Mr. Christenson, seconded by Mr. Klasen and unanimously carried to concur with the Commission’s February 13 action approving the hiring of Ms. Rademacher at Step 3 on the pay scale.
Administrator Brethorst noted that staff has obtained quotes for the interior painting of the Melrose City Center. Due to the projected cost, staff is recommending the painting of the Council Chambers and Library at this time. The quotes are as follows: Veterans Painting: $6,450; T-N-T Finishing: $6,600; Ron Breitenbach: $11,805. A fourth quote was received; however, it did not meet the quote criteria. The cost will be split 75% General, 25% Utilities.
Staff recommended awarding the bid to T-N-T Finishing. Although the bid is $150 more than the low bid from Veterans Painting, T-N-T has provided services to the City and, due to past quality and performance, staff believes T-N-T Finishing is the best value. A motion was made by Mr. Finken, seconded by Ms. Mayers and unanimously carried to concur with the Commission’s February 13 action approving awarding the bid to T-N-T Finishing in the amount of $6,600.
Administrator Brethorst reported that two applications were received for the Assistant Ambulance Coordinator position which is a two-year term. Interviews were conducted on Tuesday, February 14. According to the Ambulance Department Policies and Procedures, the Assistant Ambulance Coordinator term expires every two years. The current term will expire on February 1, 2012. Sandy Imdieke has served as the Assistant Ambulance Coordinator for the past two years. Staff is recommending Ms. Imdieke be reappointed to the position. A motion was made by Mr. Klasen, seconded by Mr. Christenson and unanimously carried reappointing Ms. Imdieke as the Assistant Ambulance Coordinator.
Mayor Vogel reported that the City has received Notice of Statement of Claim and Summons – Gerald Rademacher vs. City of Melrose in the amount of $865 for replacement of damaged chain link fence plus filing fee cost of $75 for a total of $940. Mr. Rademacher’s fence was damaged when a tree from City property fell on the fence during a July 10, 2011 storm. The City’s insurance, League of Minnesota Cities Insurance Trust (LMCIT), has denied the claim. The Council directed staff to contact the LMCIT and request reconsideration be given to the claim. A motion was then made by Ms. Mayers, seconded by Mr. Finken and unanimously carried authorizing staff to negotiate a settlement with the property owner.
City Administrator Brethorst stated that during the 2011 budget process, the Council approved the transfer of $40,000 from Fund 203 to Fund 101 to meet operating expenses. However, due to projected shortfalls for future infrastructure improvements, staff is recommending that the money remain in Fund 203. Year end numbers indicate adequate funds are available in Fund 101. A motion was made by Mr. Klasen, seconded by Mr. Christenson and unanimously carried rescinding the transfer of $40,000 from Fund 203 to Fund 101.
Community Development Director Gary Walz presented the City of Melrose 2030 Comprehensive Plan. This document, which identifies the goals, objectives, and strategies for growth and development in the City, will serve as a guideline for Council, Commissions and City staff use in decision making relating to land use, development, planning and similar activities within the City. This document will be available on the City’s new website which will be completed in the near future. In addition to being available at the Melrose City Center and the Melrose Branch of the Great River Regional Library for public viewing, it will be delivered to Melrose and Grove Townships, Stearns County, the Melrose Chamber of Commerce, and Melrose Area Public School District.
The Council recognized the following individuals for their efforts and contribution to the 2030 Comprehensive Plan: 2030 Comprehensive Plan Committee Members Henry Ahrens, Kevin Thomes, Tony Klasen, Randy Dufner, Tim Gillet, Jeanne Kraemer, Dave Rodahl, Dick Christenson, Dina Pierskalla, Kent Brown, Rachel Dymoke, Mary Schwieters, Stacey Austing-Jacobson, and Fray Zamora, along with Bonestroo/Stantec Planning Consultant Tina Goodroad and Plan Coordinator Gary Walz. A certificate of appreciation will be sent to each Committee Member.
Mayor Vogel reported that the Council, at its December 15, 2011 meeting, authorized staff to seek proposals for the Sauk River Park – Splash Pad/Skate Park Study. The following three proposals were received: EAPC Architects, Bemidji: $35,000; Stantec: $14,500; WSB: $10,370.
The apparent low bidder is WSB at $10,370. The City has received a $5,000 matching grant from the Little Falls Initiative Foundation to help offset the cost. The difference would be paid out of Parks/Recreation set-aside funds. Staff anticipates additional costs for soil borings which are not part of this bid to determine the best possible location for a splash pad or skate park. A motion was made by Mr. Finken, seconded by Ms. Mayers and unanimously carried awarding the RFP to the low bidder WSB in the amount of $10,370.
Mayor Vogel noted that the Warrior Boats Project has encountered additional expenses beyond original projections due primarily to the need and benefit of installing a sprinkling system in their new facility. Freeport State Bank, the Project’s lead lender, has agreed to the Developer’s request for an additional $50,000 in bank financing bringing that total loan request to $450,000 provided the City is receptive to its proposed RLF second position participation assistance in the amount of $100,000 allowing the financing increase. The sprinkling system is included in the appraised value of $541,500. At its January 23 meeting, MADA took action recommending that the Council concur with the request of the Developers and the Freeport State Bank for the additional $50,000 loan increase by the bank with the City’s $100,000 RLF participation remaining in a second position behind the bank’s $350,000 first position for a total loan package of $450,000. A motion was made by Ms. Mayers, seconded by Mr. Finken and unanimously carried concurring with MADA’s recommendation to approve the additional loan increase with the City’s RLF remaining in a second position.
Director Walz noted that in order to properly implement the 2030 Comprehensive Plan Update, it will be necessary to update the City’s often-amended Zoning Ordinance No. 1989-1-A and its Land Subdivision Ordinance No. 1999-B and its amendment Ordinance No. 6-5-2008-3. The need for these updates was contemplated at the time the Comprehensive Plan Update process was undertaken.
Updating the Zoning and Land Subdivision Ordinances was bid as the second phase of the two phase Comprehensive Plan Update project. The “not-to-exceed” amount for the phase two project is $13,000. The Zoning Ordinance Update and Land Subdivision Ordinance Project Work Program and Schedule calls for an anticipated project completion and Council adoption in October 2012.
This project to update the Zoning and Land Subdivision Ordinances will be undertaken by the Planning and Zoning Commission along with City staff. The process will begin with a Special Meeting of the Commission on February 23. At that time, the Commission will hold a public meeting at 7:00 p.m. to gather input from the community regarding changes that it should consider regarding either the Zoning Ordnance or the Land Subdivision Ordinance. These ordinances are available for resident review at the Melrose City Center, on the City’s website and at the Melrose Branch of the Great River Regional Library. The public is invited and encouraged to attend this public meeting and to share their recommendations and concerns. Such recommendations and concerns can also be shared directly with a Planning and Zoning Commission member or a staff member.
Administrator Brethorst noted that at its January 23 meeting, MADA concurred with staff’s recommendation to reintroduce for 2012 the City’s Residential New Construction Building Incentive Program first introduced last August. It is hoped that the 2012 edition of the program will contain all of the public and private sector incentives from 2011 plus some additional private sector ones new to the program for this year. One proposed change for the program is for it to run for the entire calendar year of 2012 through December 31, 2012. A motion was made by Mr. Christenson, seconded by Mr. Finken and unanimously carried approving the reduction of the building permit fee by $1,000 for new single-family residential construction as it did with the 2011 program.
The following informational items were discussed:
a. The following is a list of upcoming schools and conferences: 1) 2012 Joint Legislative Conference for Cities, Counties, Schools and Townships and the 2012 Joint Legislative Conference March 21-22 in St. Paul. Registration fee: $95 per person. Attending City Administrator Mike Brethorst and Mayor Tim Vogel.
2) MCFOA Conference, March 21-23 in St. Cloud. Registration fee: $210 per person. Attending: City Clerk Patti Haase, City Administrator/Treasurer Michael Brethorst and Accountant Christy Berscheit
3) EMTs Shannon Budeau and Stephanie Tillman are scheduled to take the Defensive Driving Course on March 15 through the Minnesota Highway Safety Center. Cost of the course is $256 per person for a total of $512.
b. Utilities Commission’s January 9 Regular Meeting minutes.
c. Correspondence from Charter Communications regarding rate changes.
d. Planning and Zoning Commission’s January 12 Regular Meeting minutes.
e. MADA/COC’s January 23 Regular Meeting minutes.
f. The City will purchase the City logo wall decor from CAP Industries. A quote has been received from CAP Industries for fabrication and powder coating in the amount of $1,200, less a $500 donation bringing the total cost to approximately $700.
g. 2011 City of Melrose Permit Summary – Parts One and Two and Historical Permit Summary.
h. The performance evaluations for Administration Office staff positions have been completed for the City Clerk/Administrative Assistant, Human Resource/Payroll Technician, Secretary/Receptionist, Office Assistant/Receptionist, and Billing Clerk. All evaluations were favorable, no step increases are due.
A motion was made by Mr. Finken, seconded by Ms. Mayers and unanimously carried that the meeting be adjourned at 6:55 p.m.
Patricia Haase, City Clerk
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