The Melrose City Council met in a Regular Meeting on Thursday, January 5, 2017 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, Mayor Joe Finken, City Administrator Michael Brethorst, and City Clerk Patti Haase. Mayor Finken presided thereat. The Council then recited the Pledge of Allegiance.
The City Administrator administered the Oath of Office to Council Members Tony Klasen, and Justin Frieler who were elected in November 2016 to serve for four-year terms beginning January 2017.
A motion was made by Mr. Christenson, seconded by Mr. Thieschafer and unanimously carried to approve the agenda as submitted.
Mayor Finken then opened the floor to public comment. There were no comments.
The following items were considered for approval under the Consent Agenda:
September 9, 2016 Special Joint Meeting with the Public Utilities Commission, and September 15, Special Meeting
• Assistant Weed Inspector: Mayor to appoint for a one-year term. Streets/Parks Supervisor Gary Middendorf will serve in this position.
• City Forester: Mayor to appoint for a one-year term. Streets/Parks Supervisor Gary Middendorf will serve in this position.
• Animal Control Officer: Mayor to appoint for a one-year term the Melrose Police Department as the City Animal Control Officer.
• Animal Shelter: The Council to give consideration to designating the Minnesota Veterinary Associates, Inc. as the Animal Shelter. The Council to take action on this designation.
Resolution No 2017-1, Resolution Designating Official Depository and Supplemental Depositories for City Funds. This resolution designates the depositories of City funds for 2016. Central Minnesota Credit Union – Melrose, and Freeport State Bank – Melrose were designated for 2016 and the Finance Director was given the authority to name additional depositories for the deposit of funds.
The Council may wish to again grant the Finance Director the authority to name the depositories. This could be done with the understanding that Central Minnesota Credit Union – Melrose, and Freeport State Bank – Melrose would also be used as depositories.
The motion designating the depositories of City funds should include the following, “For the purpose of being certain that all funds in financial institutions will be insured, the Finance Director shall have the authority pursuant to Minnesota Statutes 118A.02, Subd. 1, to name depositories for the deposit of funds so as to make certain that all City funds are either insured or collateral has been pledged by the depository as security, as permitted by M.S., Chapter 118A.”
The Ambulance Department will be taking the EMT Refresher January 20, 21 & 22, 2017 through North Memorial out of Alexandria. Cost of the course is $285/member x 13 members = $3705
A motion was made by Mr. Klasen, seconded by Mr. Christenson and unanimously carried to approve the Consent Agenda items.
Consideration was then given to the following appointments:
1) Acting Mayor: Council to take action appointing an Acting Mayor for a one-year term. Council Member Josh Thieschafer served as Acting Mayor for the year of 2016.
A motion was made by Mr. Christenson, seconded by Mr. Klasen and unanimously carried to appoint Mr. Thieschafer as Acting Mayor for 2017.
2) Public Utilities Commission: The Mayor to appoint one member for a three-year term. Incumbent Eric Seanger is seeking reappointment.
The Mayor to appoint a Council Representative for a one-year term to the Public Utilities Commission. Dick Christenson served as the Council Representative for the year of 2016.
Mayor Finken reappointed Eric Seanger for a three-year term and Dick Christenson as Council representative for a one year term.
3) Planning and Zoning Commission: The Council to appoint one member for a four-year term. Incumbent Randy Dufner is not seeking reappointment to the Planning and Zoning Commission. Dave Berscheit has submitted an application to serve on the Planning and Zoning Commission.
Mayor Finken appointed Dave Berscheit for a four-year term and Tony Klasen as the Council Representative for a one-year term to the Planning and Zoning Commission.
4) Melrose Area Development Authority (MADA): Mayor to appoint and Council to concur appointing one member for a six-year term. Jerome Duevel is seeking reappointment.
The Mayor to appoint a Council Representative for a one-year term to the Melrose Area Development Authority. For 2016, Jenny Mayers served as the Council Representative.
Mayor Finken reappointed Jerome Duevel for a six-year term and Josh Thieschafer as the Council Representative for a one-year term to the Melrose Area Development Authority.
5) Housing and Redevelopment Authority (HRA): Mayor to appoint and Council to concur appointing one member for a five-year term. Karen Thostenson is seeking reappointment.
Mayor to appoint and Council to concur a Council Representative to serve a one year term. The Council to adopt Resolution No. 2017-2 Resolution of Appointment.)
Mayor Finken reappointed Karen Thostenson to a five-year term and Mayor Finken will serve as the Council Representative for a one-year term to the Melrose Housing and Redevelopment Authority.
Mr. Christenson introduced Resolution No. 2017-2, Resolution of Appointment to the Melrose Housing and Redevelopment Authority. The motion was seconded by Mr. Frieler with a roll call vote recorded as follows: For: Council Members Christenson, Frieler, Klasen, Thieschafer, and Mayor Finken; Against: None.
6) Mayor to appoint and Council to concur a Council Representative to the Parks and Recreation Board to serve a one term. For 2016, Josh Thieschafer served as the Council Representative.
Mayor Finken appointed Justin Frieler as the Council Representative to the Parks and Recreation Board for a one-year term.
7) Mayor to appoint and Council to concur a Council Representative to the Fire Relief Association. Tony Klasen served as the Representative in 2016.
Mayor Finken reappointed Tony Klasen to serve as the Council Representative to the Fire Relief Association Board for a one-year term.
8) Mayor to appoint and Council to concur a Council Representative to the Melrose Fire Relief Fund. Council Member Jenny Mayers served as the Council Representative in 2016.
Mayor Finken will serve as the Council Representative on the Melrose Fire Relief Fund Committee for a one-year term.
1) The Council gave consideration to designating the Grievance Representative for 2017. The Utilities Commission will also designate their Grievance Representative for 2017 at its January 9, 2017 meeting. For 2016, Joe Finken was the Council representative and Jeremy Kraemer was the Utilities Commission representative. The Council to take action appointing a Council Member to serve as Grievance Representative for 2017.
Mr. Finken to serve as the Grievance Representative for 2017.
2) The Council next gave consideration to appointing a member to the Ad Hoc Labor & Personnel Committee for future labor discussions. In 2016, Council Member Jenny Mayers served as Council Representative and Eric Seanger served as the Utilities Commission representative for this Committee. The Utilities Commission will be appointing a representative at its January 9, 2017 meeting. The Council to take action appointing a representative to the Ad Hoc Labor & Personnel Committee for 2017.
Mayor Finken appointed Mr. Thieschafer as the Council Representative to the Ad Hoc Labor & Personnel Committee for 2017.
A motion was made by Mr. Christenson, seconded by Mr. Thieschafer and unanimously carried approving the aforementioned appointments.
Mayor Finken stated that over the years, the City has looked to members of the Community to help guide pre-development discussions prior to finalizing draft proposals to the various Boards and Commissions for formal consideration. This has been an ad hoc committee over the years. It consisted of the various Board chairs, however, over time, these members changed and so did the composition of the advisory / sound board organization. It now consists of other people that are no longer associated with a Board and Committee. It is suggested that we return to a Board Chair and Mayor focus vs. the current practice. It is also suggested to change the name to Pre-Development Advisory Committee. This recommendation is made as this group has historically, provided comment on more than just property. It is intended to help clarify the purpose of this ad hoc committee.
A motion was made by Mr. Thieschafer, seconded by Mr. Klasen and unanimously carried to structure the Pre-Development Committee back to its original composition of various board chairs.
Finance Director Beuning stated that in September of 2015, the City of Melrose pledged monetary support to the CentraCare Health Melrose Hospital Building Fund. In recognition of the generous donation, a plaque will be placed inside the new hospital. The Melrose Public Utilities had opted to use the Melrose Public Utilities logo and will not list its members. The City Council discussed the design of the City plaque.
The Council by consensus chose to use the City of Melrose logo and will not list its members, the same as the Melrose Public Utilities Commission.
Council Member Klasen requested staff to contact CentraCare and should they wish to dispose of the current Melrose City Hospital plaque ask that it be donated to the City of Melrose Historical Society.
Mayor Finken noted that the Melrose Multi-family development project is in need of further assistance, as per Mitch Rengel from Melrose Multi-Family, since the City was not awarded the Work Force Housing Grant in December. We anticipate Melrose Multifamily needing an additional $500,000 dollars to make the project a reality. We are awaiting a final number form Melrose Multi-Family in coming weeks. As of now the City of Melrose has committed to the following items as far as assistance to the project.
The City has already committed to:
1. Selling the development property for $1
2. Establish a Redevelopment TIF District upon approval of all financing and funding sources.
3. In exchange for the covenants of the Developer, outlined above, the City will issue a Pay As You Go Note in the amount of up to $594,004 or actual documented costs, whichever is less, subject to the following terms:
• Note shall be issued on or around January 1, 2018 following Developer’s submission to the City of paid invoices or other documentation for the site improvement costs associated with the Project incurred after the approval of the TIF District.
• The Note shall not exceed $594,004, but could be less dependent upon the amount of actual increment and paid invoices for eligible expenses actually submitted to the City by the Developer.
• Note payments will be made utilizing 95% of the increment generated by the Project.
• Pay As You Go Note payments will be made twice per year for increments collected the previous six months for a term of ten (10) years. The first payment date shall be August 1, 2019 and continue every six months until final maturity of February 1, 2029 or until the Note is satisfied, whichever is sooner and carry and interest rate of 0% per annum.
The Note is a special and limited obligation of the City. Should tax increments be insufficient to fully repay the Note, the City is not required to make up any shortfalls for any reason.
A motion was made by Mr. Christenson, seconded by Mr. Klasen to close the meeting at 6:15 p.m. in accordance with the protocol for doing so.
Present were Council Members Tony Klasen, Josh Thieschafer, Justin Frieler, Council/Commission Member Dick Christenson, Mayor Joe Finken, along with City Administrator Michael Brethorst, Community Development Director Mike Creelman, Finance Director Tessa Beuning, Development Consultant Traci Ryan, and City Clerk Patricia Haase.
Mr. Creelman and Ms. Ryan presented various business incentives for Council consideration should the developer’s request additional funding.
A motion was made by Mr. Thieschafer, seconded by Klasen and unanimously carried to re-open the meeting at 6:48 p.m.
The Council has provided staff with direction in further discussions with the developer.
The students from Germany will be arriving in Melrose on Thursday, February 16. The students from Ahaus will be departing on Saturday, February 25 and the students from Bühl on Monday, March 6. Last year the Council held an Open House for the students and teachers. The Council to consider hosting the event on Monday, February 20, or Tuesday, February 21 at 6:00 p.m.
The Council by consensus agreed to host the German students and teachers on Tuesday, February 21 at 6:00 p.m. at the Melrose City Center.
The following informational item was discussed:
Great River Regional Library Semi-Annual Report.
Community Development Director provided a brief update on the 400 Block
A motion was made by Mr. Frieler seconded by Mr. Christenson and unanimously carried that the meeting be adjourned at 6:50 p.m.
Patricia Haase, City Clerk
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