The Melrose City Council met in a Regular Meeting on Thursday, July 20, 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, Justin Frieler, and Mayor Joe Finken, City Administrator Michael Brethorst, and City Clerk Patti Haase. Council Member Josh Thieschafer was absent. Mayor Finken presided thereat.
The Council then recited the Pledge of Allegiance.
A motion was made by Mr. Christenson, seconded by Mr. Klasen and unanimously carried to approve the agenda as submitted.
Mayor Finken then opened the floor to public comment. Jeff Bertram with West Central Sanitation congratulated Erv Bueckers on the sale of his company. Mr. Bertram asked the council to look at other garbage hauling options down the road. There was no further comment.
The following items were considered for approval under the Consent Agenda:
a. The minutes from the June 15 Regular Meeting, and the July 3 Special Meeting
b. list of bills in the amount of $367,228.60 (See attached list)
c. list of investments for the month of June.
d. Streets/Parks Worker Keith Dobmeier’s will complete two years of service with the City on August 10. Streets/Parks Supervisor Gary Middendorf has conducted Mr. Dobmeier’s review and it is favorable; therefore, recommends he receive a step increase from Step 4 to Step 5.
The Council to take action approving Mr. Dobmeier’s increase.
e. Community Development Director Michael Creelman will complete one year of service with the City on July 18, 2017. City Administrator Brethorst has conducted Mr. Creelman’s review and it is favorable; therefore, recommends he receive a step increase from Step Start to Step 1 of a seven-step system.
f. On July 28, Accounting Clerk Stacy Funk will complete three years of service with the City. Finance Director Beuning has conducted a review and it is favorable; therefore, recommends approval of a step increase from Step 6 to Step 7.
The Commission to take action approving Ms. Funk’s increase
g. The City has received a 2:00 A.M. Closing Liquor License Application from Anthems at MP’s. 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.
h. Resolution No. 2017-41, Resolution Approving Gambling License to the Melrose Chamber of Commerce for an exemption from lawful gambling license to conduct a raffle on Friday, November 24, 2017 at 223 Main Street East, Melrose MN.
i. Ambulance Coordinator Jenn Tschida is requesting approval be given to the appointment of April Dewald to the Ambulance Department contingent upon passing the NREMT test, and passing pre-employment physicals and drug tests.
J. Donation Resolutions: 1) Resolution No. 2017-42 donation in the amount of $1,000 from the Melrose American Legion Post 101 to the Tri Cap bus service. A motion was made by Mr. Frieler, seconded by Mr. Christenson and unanimously carried to approve the Consent Agenda items.
The Council held a Public Hearing on: the proposed establishment of Economic Development Tax Increment Financing District No. 9-2 within Development District No. 9; the proposed adoption of Tax Increment Financing Plan relating thereto; and consideration of a business subsidy to J-T of Melrose, Inc. all pursuant to and in accordance with Minnesota Statutes, Sections 469.124 through 469.134, both inclusive, as amended and Minnesota Statutes, Sections 469.174 through 469.1799, both inclusive, as amended (collectively, the “Act”); and consideration of a Business Subsidy J-T of Melrose, Inc. Copies of the respective plans, as proposed to be adopted, are on file and available for inspection at the office of the City Clerk of the City of Melrose at City Hall. Development Consultant reviewed the Tax Increment Financing Plan.
City Administrator Brethorst presented the Affidavit of Publication of the hearing notice which was published in the Melrose Beacon on July 5th, 2017.
There being no further comment, the Public Hearing was closed at 6:15 p.m.
The Council held a Public Hearing on: the proposed establishment of Economic Development Tax Increment Financing District No. 9-3 within Development District No. 9; the proposed adoption of Tax Increment Financing Plan relating thereto; and consideration of a business subsidy to Arce Auto all pursuant to and in accordance with Minnesota Statutes, Sections 469.124 through 469.134, both inclusive, as amended and Minnesota Statutes, Sections 469.174 through 469.1799, both inclusive, as amended (collectively, the “Act”); and consideration of a Business Subsidy Arce Auto Copies of the respective plans, as proposed to be adopted, are on file and available for inspection at the office of the City Clerk of the City of Melrose at City Hall. Development Consultant Traci Ryan reviewed the Tax Increment Financing Plan.
The City Administrator presented the Affidavit of Publication of the hearing notice which was published.
There being no further comment, the Public Hearing was closed at 6:18 p.m.
The Council held a Public Hearing on the vacation of easement relating to electric utilities for the property at 222 County Road 173 SE. The City of Melrose has a 7.5-foot permanent utility easement, along the property. The property owners are requesting to vacate the easement to allow for the expansion of the warehouse facility on the property. The utilities within this easement have already been moved and/or abandoned to facilitate this expansion.
The City Administrator presented the Affidavit of Publication of the Hearing Notice which was published.
There being no further comment, the Public Hearing was closed at 6:20 p.m.
Police Chief Craig Maus noted that due to Ms. Weber’s retirement the Police Department’s June report was not available. Chief Maus noted that National Night Out will be held on Tuesday, August 1, 2017 at the Sauk River Park. It’s a great opportunity to get to know members of the community and your local law enforcement officers. Chief Maus stated that tomorrow is the last day for Melrose Community LLC to bring the property into compliance. If the property is not cleaned up the City will make arrangement to clean-up the property and assess the cost back to the owner. The Drug Task Force continues to work in the area.
Development Director Mike Creelman reported on the Commission’s July 10 Regular Meeting. The Commission held Public Hearing for the platting, rezoning and variance for Melrose 1 Stop. In addition, Public Hearings were held for CUP’s for Arce Auto and Melrose 1 Stop. These items will be addressed later in the meeting.
Community Development Director Mike Creelman provided an update on the 400 Block. Mr. Creelman stated the owner is looking at re- opening his business at a location on Main Street. The 400 Block will be brought back to a buildable site.
City Attorney Scott Dymoke reported on projects he has been working on for the City.
• Community Development Project – JOTS Project: Worked with city staff to complete response to comments on EAW for JOTS project
• Utilities: East Substation: Worked with city staff to prepare response to request for additional information in support of application for Federal EDA grant to expand east substation
• Sunday Liquor Sales: Reviewed new state statutes and existing city regulations concerning Sunday liquor off-sale. Met with city staff to review regulatory options available to Melrose and potential amendments to city regulations
• Solid Waste Agreement: Reviewed existing agreement for residential solid waste removal. Met with city staff to review options available to Melrose in light of proposed assignment of agreement by current solid waste contractor.
• Melrose Community LLC, Nuisance: Attended hearing and obtained court order directing abatement of nuisance. Served notice of order on interested parties and filed affidavit of service of order with court.
Mayor Finken stated that the City has been informed that Buecker’s Sanitation will be changing ownership and will be selling its operations, recycling and garbage pickup. We were informed that they intend to keep operations, staffing and agreements in place to support the local contact with the City of Melrose. Ervin Bueckers and Waste Management have asked the Council to accept the transfer in whole. The City of Melrose represented approximately 1300 customers of the approximately 7,000 total Bueckers customers. Under the terms of the agreement, the City has 2 options available to them.
1) Accept transfer and agreement and keep rates at 2017 rate till contract expires
a. Contract expires December 31, 2021 with fixed rates
2) Submit an RFP for other single haulers for waste
Council Member Klasen stated that he has not received any complaints with the current service. He stated that Bueckers also provided leaves, grass clippings and twig pick-up which is an additional benefit. Council Members Christenson and Frieler reaffirmed Mr. Klasen’s comments.
A motion was made by Mr. Christenson, seconded by Mr. Klasen and unanimously carried approving the transfer and agreement for solid waste and recyclable service to Waste Management.
Mayor Finken noted that on May 24, 2017, a request for TIF assistance was submitted to City staff for a business located in the C-2 district. MADA at its June 13th meeting recommended to the Council to approve the TIF assistance for the development. The Council scheduled a Public Hearing on the Creation of Tax Increment Financing District No 9-2 Therein, and the Adoption of Tax Increment Finance Plan Relating Thereto, in Relation to J-T of Melrose, Inc.
In the past, the City have often (not always) had development agreements ready for council consideration but because staff were asked to accelerate the council action so that a building permit can be pulled for this project, the final development agreement has not coordinated to date. Rather, staff has provided preliminary terms letters and ask the council to consider approval the terms and authorize execution of the forthcoming development agreement(s) if the terms are not materially different from the terms letters presented at the public hearing.
Council Member Frieler introduced Resolution No. 2017-43, Approving the Creation of Tax Increment Financing District No. 9-2, 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 Frieler, Klasen, Christenson, and Mayor Finken; Against: None
ABSENT: Council Member Thieschafer. A motion was made by Mr. Christenson, seconded by Mr. Klasen and unanimously carried approving the Development Agreement Terms.
Mayor Finken noted that on June 1, 2017 a request for TIF assistance was submitted to City staff for a business located in the C-2 district. MADA at its June 13th meeting recommended to the Council to approve the TIF assistance for the development. The Council scheduled a Public Hearing on the Creation of Tax Increment Financing District No 9-3 Therein, and the Adoption of Tax Increment Finance Plan Relating Thereto, in Relation to Arce Auto.
In the past, the City have often (not always) had development agreements ready for council consideration but because staff were asked to accelerate the council action so that a building permit can be pulled for this project, the final development agreement has not coordinated to date. Rather, staff has provided preliminary terms letters and ask the council to consider approval the terms and authorize execution of the forthcoming development agreement(s) if the terms are not materially different from the terms letters presented at the public hearing.
Council Member Frieler introduced Resolution No. 2017-44, Approving the Creation of Tax Increment Financing District No. 9-3, and Adoption of the Tax Increment Financing Plan Relating Thereto. The motion was seconded by Mr. Christenson with a roll call vote recorded as follows: For: Council Members Frieler, Christenson, Klasen, and Mayor Finken; Against: None; Absent: Council Member Thieschafer. A motion was made by Mr. Klasen, seconded by Mr. Christenson and unanimously carried approving the Development Agreement Terms
Mayor Finken stated that earlier this evening the Council held a Public Hearing on the vacation of easement relating to electric utilities for the property at 222 County Road 173 SE. The City of Melrose has a 7.5-foot permanent utility easement, along the Property. The property owners are requesting to have this 7.5-foot easement vacated.
Council Member Frieler introduced Resolution 2017-45, A Resolution Vacating a General Utility Easement upon a Petition by the Landowners. The motion was seconded by Mr. Klasen with a roll call vote recorded as follows: For: Council Members Frieler, Klasen, Christenson, and Mayor Finken; Against: None; Absent: Council Member Thieschafer.
Fire Chief Kraemer stated that in 2012, the City of Melrose as the guarantor for the Melrose Fire Department Retirement program entered into an agreement with PERA to manage the retirement program and funds for the Department. At that time, there was a five-year lock at the $1,500 per Fireman. The program is funded by three primary areas: Fire State Aid, Investment Income and local contribution. Melrose has agreed to make an annual contribution of $8,200. This dollar has been adjusted over the years.
As per the PERA bylaws, there is a 5-year vesting into the program where no changes to the Benefit Level can occur. In 2018, the Benefit level can be adjusted. A full analysis has been conducted by PERA and reviewed by the Finance Director, City Administrator and Fire Chief. Based on review of the Benefit level, it is projected that there be no estimated Required Additional Contribution by the City if the Benefit Level were to be raised The attached cost analysis shows a $772 Required Contribution if the City were to increase to $2,100. However, this does not consider the additional contribution the fund receives each year in the amount of $8,200. Based on this analysis, it is recommended to adjust the Benefit level to $2,100. It is additionally, recommended reviewing this annually to determine the level of Benefit based on the funds’ performance.
Council Member Klasen stated that based on the limited amount of performance data of the funds and the fact that the amount cannot be decreased he proposed the amount be set at $1,900 per year. Mr. Klasen stated if the funds continue to perform well he would be open to revisiting the benefit level. Mr. Christenson concurred.
After further discussion, a motion was made by Mr. Klasen to adopt Resolution No. 2017-46, A Resolution Opting to Increase the Benefit Level for Firefighters Who Are Vested in the Voluntary Statewide Volunteer Firefighter (SVF) Retirement Plan as amended with the benefit level to be set at $1,900 per year. The motion was seconded by Mr. Frieler with a roll call vote recorded as follows: For: Council Members Klasen, Frieler, and Christenson; Against: None Abstain: Mayor Joe Finken due to a conflict of interest; Absent: Council Member Thieschafer.
Mayor Finken noted that at the Planning and Zoning Commission meeting held on July 10, 2017, the Commission held a public hearing and recommends to the Council that the Conditional Use Permit be approved. The CUP is received to accommodate a request submitted by Arce Auto to allow for car sales on the property.
Council Member Christenson introduced Resolution No. 2017-47 Resolution Approving Case No. 2017-404 Application form Joseph Arceneau to Allow Sales of Motor Vehicles as Allowed by CUP on Parcel 66.3667.0008. The motion was seconded by Mr. Klasen with a roll call voter recorded as follows: For: Council Members Christenson, Klasen, Frieler, and Mayor Finken; Against: None; Absent: Council Member Thieschafer.
Mayor Finken noted that at the Planning and Zoning Commission meeting held on July 10, 2017, the Commission held a public hearing and recommends to the Council that the Preliminary Plat and Final Plat be approved. The application is received to accommodate a request submitted by Rahn Properties LLC for the expansion of the existing business.
Council Member Frieler introduced Resolution No 2017-48 Resolution Approving of Case No. 2017-200 Application from Rahn Properties LLC to Allow Creation of a New Plat. The motion was seconded by Mr. Klasen with a roll call vote recorded as follows: For: Council Members Frieler, Klasen, Christenson, and Mayor Finken; Against: None; Absent: Council Member Thieschafer.
Mayor Finken stated that the Planning Commission on July 10, 2017 held a Public Hearing for the purpose of giving consideration for an amendment to 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 accommodate a request submitted by the City of Melrose in behalf of Rahn Properties LLC for the rezoning of Parcel 66.36424.0000 and part of Parcel 66.36421.0505.
The submitted request is to rezone said parcel from R-1, Residential District to C-2, Commercial Highway. This proposed rezoning is a result of MN State Statutes in that cities must allow Commercial uses within a City. This request is needed in order for Melrose 1 Stop to expand the existing business.
Council Member Christenson introduced Ordinance No 7-20-2017 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 No. 66.36424.0000 Owned By Rahn Properties LLC And Part of Parcel No. 66.36421.0505 Owned By Church Of St. Mary From R-1, Residential To C-2, Commercial Highway. The motion was seconded by. Mr. Klasen with a roll call vote recorded as follows: For: Council Members Christenson, Klasen, Frieler, and Mayor Finken; Against: None; Absent: Council Member Thieschafer.
Mayor Finken stated that at the Planning and Zoning Commission meeting held on July 10, 2017, the Commission held a public hearing and recommends to the Council that the Conditional Use Permit be approved. The CUP is received to accommodate a request submitted by Rahn Properties LLC for the expansion of the existing business.
Council Member Frieler introduced Resolution No. 2017-49 Resolution Approving Case No. 2017-405 Application from Rahn Properties LLC To Operate An Auto Service Station And Car Wash By Conditional Use Permit. The motion was seconded by Mr. Christenson with a roll call vote recorded as follows: For: Council Members Frieler, Christenson, Klasen, and Mayor Finken; Against: None; Absent: Council Member Thieschafer.
Mayor Finken stated that at the Planning and Zoning Commission meeting held on July 10, 2017, the Commission held a public hearing and recommended to the Council that the Variance be approved. The Variance is received to accommodate a request submitted by Rahn Properties LLC for the expansion of their existing business. If granted the Variance would remove the requirement of an eight-foot landscaped yard in the Northeast portion of the property.
Council Member Frieler introduced Resolution No. 2017-50 Variance Requested by Rahn Properties LLC To Allow A Portion Of The Mandatory Eight-Foot Buffer Strip To Be Forgiven Located In The Northeast Corner Of The Property. The motion was seconded by Mr. Klasen with a roll call vote recorded as follows: For: Council Members Frieler, Klasen, Christenson, and Mayor Finken; Against: None; Absent: Council Member Thieschafer.
Mayor Finken stated that the 3rd Avenue Project is substantially complete and ahead of originally planned schedule. With all older street projects, a few items were identified that were not planned for. A previously unknown manhole was exposed during the removal of the lift. It was assessed that this is a storm sewer clean out. The manhole was raised to be in line with the road and man hole cover was put in place. During the work, it was found that an additional 30 feet of storm sewer had to be replaced.
The Council gave consideration to Contract Voucher No. 1 from Tri-City Paving for the 3rd Avenue West Resurfacing project. Mike Nielson, PE with WSB & Associates, has reviewed and recommends approving the construction voucher. This pay request is for $165,263.71 and is less a 5% retainage of $8698.09. The retainage will be paid upon successful completion of the project.
A motion was made by Mr. Klasen, seconded by Mr. Frieler and unanimously carried approving pay voucher #1 in the amount of $165,263.71.
Mayor Finken stated that when the Melrose Area Ambulance switched to Advantage Billing as their new billing providers in January 2017, they were given one year to continue with their paper call reports, without additional charges, with the understanding that the Ambulance Department would move to the electronic reporting system. Advantage Billing provides this electronic reporting system that they can upload directly to MnStar, which saves considerable time as well as data entry. If the Ambulance Department does not move to the electronic reporting, they would be charged an additional $3 per run. Quotes were obtained for three Panasonic Toughbooks, which total $12,501 and $10,980. The Ambulance had $10,000 in the five-year plan in 2017 to replace pagers and radios which did not need to be done, so that money would be reallocated to the laptops. Staff is recommending going with the higher quote, as this is with our current service and IT consultants. A motion was made by Mr. Christenson to approve the purchase of the Panasonic Toughbooks, through the City’s current vendor in the amount of $12,501. Mr. Klasen amended the motion approving the expenditure in the amount of $12,501 with staff to explore purchasing the laptops at the lesser amount if the City’s’ IT provider will offer maintenance and service support. The motion carried.
Mayor Finken stated that Advantage Billing Concepts, the billing provider for the Melrose Area Ambulance has sold a portion of their coding business along with the name. The ambulance billing service will be moving clients to Expert T billing. Our rates and services will remain the same, but there will be a change in name.
A motion was made by Mr. Klasen seconded by Mr. Frieler and unanimously carried approving the updated ambulance billing provider contracts.
Mayor Finken stated that the Council at its May 18 meeting voted to direct WSB to prepare final Engineering / Planning estimates to finalize the projects noted: Kraft Lot Re-Plat, Kraft Wall Re-design and 1st Street NE. The Council also directed through consensus to explore one last redesign option of the bridge and to come back to the Council with cost estimates to determine what it would cost to assess this option and discuss cost and benefits in doing so Mike Nielson with WSB provided a summary of the bridge discussions and the current plan elements. Mr. Nielson then reviewed the alternate plan and the process to relocate or re-align the channel. The Council reviewed the associated costs and the pros and cons of relocating the channel and bridge. Mr. Nielson noted that final project funding list will be available in the next 2-3 weeks at which time they will know if funding is in the bonding bill for the Melrose bridge and, if so, the timeline for construction.
The Council, by consensus, tabled action on the proposals for the Kraft Lot Re-Plat, Kraft Wall Re-design, 1st Street NE, and the bridge redesign to the July meeting at which time the final project funding list will be available.
Mike Nielson has spoken with Ms. Patti Loken at MnDOT this week and found out that the bridge is not currently funded with the Bridge Bond Funds. Ms. Loken did indicate that there was still a chance that it might get funded with the $25M in the General fund for bridges, however these funds would not be available until July of 2018. If the bridge were funded with the general fund sales tax money in July of 2018 construction would begin in June of 2019 to avoid the school traffic. If the council chooses to move forward with the redesign, Mr. Nielson is estimating the earliest possible funding assuming there is a bonding bill passed would be in 2020 with a more likely chance in 2021 or later. Mr. Nielson has reviewed this funding schedule with Jodi Teich, Stearns County Engineer and she agrees with that assessment.
A motion was made by Mr. Klasen, seconded by Mr. Frieler and unanimously carried to move forward with the hydraulic bridge analysis.
Mr. Nielson next presented the proposal for professional services for the 1st Street NE/Baker Alley and Fourth Avenue NE. Mr. Nielson outlined the project details
A motion was made by Mr. Klasen, seconded by Mr. Frieler and unanimously carried approving the Professional Service Agreement for the 1st Street NE/Baker Alley and Fourth Avenue NE project.
Mayor Finken stated that the City wishes to inform the residents that any petitions requesting public improvements for the year of 2018 must be filed with the City Clerk no later than July 21, 2017. The petitions for improvements such as sanitary sewer, water mains, street, and curb and gutter will be given consideration for improvement in 2018.
Mayor Finken noted that the State of Minnesota, passed the following rule during the Special Session regarding Sunday Liquor: They added the words days or Article 5, Section 9, Sub 6: A municipality may further limit the days or hours of on and off sales of alcoholic beverages, provided that further restricted on-sale hours for intoxicating liquor must apply equally to on-sale hours of 3.2 percent malt liquor. A city may not permit the sale of alcoholic beverages during hours when the sale is prohibited by this section.
• https://www.revisor.mn.gov/laws/?id=4&doctype=Chapter&year=2017&type=1#laws.5.9.0
• http://www.lmc.org/page/1/FONL-SundaySales.jsp
The City has received a request from a Liquor License holder whom ask that City to consider not allowing Sunday Off-Sale Liquor. The City Council has three options available to them.
1) No change to the City Code and continue to defer to State Law for hours of operations
2) Limit hours of operations different to that of the State
a. Current law 11 a.m.-6 p.m.
3) Eliminate Sunday sales
If the Council opts to take action on number 2 or 3, it will require a Public Hearing followed by debate of the Council and ultimate action.
After further discussion, a motion was made by Mr. Klasen, seconded by Mr. Christenson and unanimously carried to hold a public hearing on Thursday, October 19, 2017 for the purpose of giving consideration to restricting or limiting the hours of Sunday Off Sale Liquor.
Mayor Finken stated that the New Munich Jaycees is proposing to hold a Fall Classic in the City of Melrose. They are proposing to conduct a carnival, car show, food booths, live music and more. They are proposing to conduct the event September 7-10. They are committed to completing the Special Event Application, Community Festival License and secure the required Liquor and General Liability Insurance. The Sauk River Park is reserved by other events at that time, therefore, they are requesting the use to the “Kraft Lot, City Center Parking Lot and associated right-of-way. Police Chief Maus, Streets / Parks Supervisor and Community Development Director have review the request. (Note: this is brought to the Council for consideration as the Kraft Lot and City Center Parking lots have not been used as public event space)
Sophie Sabinash presented the proposed events for the Fall Classic. Ms. Sabinash stated that the money raised from the event will be donated to a local non-profit. Ms. Sabinash encouraged other organizations to take part in the event.
A motion was made by Mr. Klasen, seconded by Mr. Frieler and unanimously carried to allow the New Munich Jaycees to use the Kraft Lot and associated properties.
The following informational items were reviewed:
a. Ken Douvier has resigned from the Melrose Police Reserve. Mr. Douvier served on the Reserves for 30 years.
b. The minutes from the Utilities Commission’s June 12 Regular Meeting
c. CentraCare Open House Invitation
d. City Staff will meet in a budget working group meeting with the City Council in August where we will review the 2018 preliminary budget, the 5-year capital improvement plan and do a drive around the city with Streets Supervisor Middendorf. In the past this was done proceeding the regularly scheduled August meeting. The revised preliminary budget will be brought back to the Council for approval in September to certify the preliminary tax levy to Stearns County.
A motion was made by Christenson, seconded by Mr. Klasen and unanimously carried that the meeting be adjourned at 8:00 p.m.
Patricia Haase, City Clerk