Melrose City June 15, 2017

The Melrose City Council met in a Regular Meeting on Thursday, June 15, 2017 at 6:00 p.m. at the Melrose City Center pursuant to due notice being given thereof. Present were Council Members Tony Klasen, Justin Frieler, Dick Christenson, and Josh Thieschafer, Mayor Joe Finken, Finance Director Tessa Beuning, and City Clerk Patti Haase. City Administrator Michael Brethorst was absent. Mayor Finken presided thereat. The Council then recited the Pledge of Allegiance.
A motion was made by Mr. Thieschafer, seconded by Mr. Frieler and unanimously carried to approve the agenda as submitted.
Mayor Finken then opened the floor to public comment. Alex Martinez addressed the Council expressing his concern for the drug problem that exists in the City. Mr. Martinez stated that it is just as easy to buy meth as it is to get a Whooper. Mr. Martinez spoke about his own personal experience with drugs from earlier in his life and wanted to bring awareness to the community of the current situation here in Melrose.
The following items were considered for approval under the Consent Agenda:
• the minutes from the Councils May 18 Special Joint Meeting with the Public Utilities Commission, the Council’s May 18 Regular Meeting, and the May 25 Special Meeting.
• list of bills in the amount of $340,140.70.
• list of investments for the month of May.
• Gambling Resolution No. 2017-33, Melrose Lions to conduct off-site gambling on June 23-24 at the Riverfest Celebration.
1) Donation Resolution No. 2017-35, donation in the amount of $1,829.48 from the Loren Pundsack Collision Center towards the repair of the Melrose Fire Department fire truck.
2) Donation Resolution No. 2017-39, donation in the amount of $1,800 from the New Munich Jaycees to the Melrose Area Chamber of Commerce for the Riverfest celebration.
• EMT Jeremy Vearrier has submitted his letter of resignation from the Melrose Ambulance Department effective May 8, 2017.
A motion was made by Mr. Christenson, seconded by Mr. Thieschafer and unanimously carried to approve the Consent Agenda items.
Police Chief Craig Maus conducted the Swearing-in Ceremony with an Oath of Office and pinning of badge for Police Officers Jeff Eggert and Jamie Green.
Police Chief Craig Maus presented the Police Department’s May report. He noted there were 349 calls for service during that month, compared to 382 for May 2016. There was a total of nine written citations and 42 verbal warnings for the month of May 2017. The year-to-date number of calls is 1363 compared to 1765 in 2016. For the month of May 2017, the Department received 21 agency-assist calls. The Police Department has begun conducting re-inspection on those properties that were sited with a nuisance violation. Many of the properties have come into compliance. Chief Maus stated that due to ongoing investigations, he was not able to provide detail on the comments made earlier by Mr. Martinez; however, he did state that the Drug Task Force does have personnel working in the area. Chief Maus stated that the Police Department is actively working with the Drug Task Force and there have been behind-the-scene activities taking place.
Community Development Director Creelman provided an update on the Planning and Zoning Commission’s June 5 meeting and the MADA’s June 13 meeting. The Planning and Zoning Commission reviewed the request by J-T of Melrose Inc. for a variance due to the inability to meet the structure height requirements as per City Code. MADA reviewed the request for TIF assistance from a business owner who is seeking to expand its commercial space. The preliminary discussions indicate there will be both tax base growth and job retention. MADA also reviewed the request for TIF assistance from a business that is seeking to develop a lot that has been vacant for several years. The preliminary discussions also indicate there will be both tax base growth and job retention.
City Attorney Scott Dymoke reported on projects he has been working on for the City.
• Community Development, Jennie-O Turkey Store (JOTS) Project: Worked with City staff to prepare utility easements and BDPI Declaration. Worked with City staff to determine EAW requirements for project.
• Community Development, Willow Project: Worked with City staff to prepare restated purchase agreements to address additional requirements for JOTS project.
• Community Development, St. Mary’s Church: Worked with City staff to determine EAW requirements for new facility and preparation of correspondence to Church officials notifying them of EAW requirements.
• Community Development, Zoning & Subdivision: Worked with City staff to determine zoning and subdivisions requirements for possible future development projects.
• Nuisance Actions, Continued with the City Council Orders directing abatement of nuisance conditions on Melrose Community LLC property.
• EDA Application: Worked with City staff on preparing responses to the EDA Application
Mayor Finken reported that the City received their annual quote for general liability, errors and omissions, auto, equipment, and property insurance through the League of Minnesota Cities Insurance Trust (LMCIT) for the period of May 15, 2017 – May 15, 2018. The total quote is $70,945 from $70,992 for the 2016-2017 coverage, basically remaining flat for premium cost. The cost for the premium is shared between the General at 39% and Utility Funds at 61%.
The City’s insurance coverage has a $5,000 deductible, $15,000 aggregate. The City needs to decide whether or not to waive the statutory tort liability limits. The decision to waive or not to waive the statutory limits has the following effects:
1. If the City does not waive the statutory limits, an individual claimant would be able to recover no more than $500,000 on any claim to which the statutory limits apply. The total which all claimants would be able to recover for a single occurrence to which the statutory tort limits apply would be limited to $1,500,000. These statutory tort limits would apply regardless of whether or not the City purchases the optional excess liability coverage.
2. If the City waives the statutory tort limits and does not purchase excess liability coverage, a single claimant could potentially recover up to $1,500,000 on a single occurrence. The total which all claimants would be able to recover for a single occurrence to which the statutory tort limits apply would also be limited to $1,500,000 regardless of the number of claimants.
3. If the City waives the statutory tort limits and purchases excess liability coverage ($1 million for $11,099), a single claimant could potentially recover an amount up to the limit of the coverage purchased. The total which all claimants would be able to recover for a single occurrence to which the statutory tort limits apply would also be limited to the amount of coverage purchased, regardless of the number of claimants. In the past the City has not purchased the excess liability coverage.
In the past, the City has chosen Option 2.
A motion was made by Mr. Thieschafer seconded by Mr. Frieler and unanimously carried concurring with the Utilities Commission approving the insurance quote of $70,945, to waive the monetary limits on municipal tort liability, to keep the deductible at $5,000/$15,000, and not purchase excess liability coverage.
Planning and Development Director Mike Creelman stated that at the Planning and Zoning Commission meeting held on June 5th, 2017, the Commission held a public hearing and recommend to the Council that the Variance be approved. The Variance is received to accommodate a request submitted by J-T of Melrose for the expansion of the warehouse facility. The variance allows for the maximum height of structures to be 55 feet versus the Zoning ordinance maximum height of 40 feet. Resolution No. 2017-38 Variance Requested by J-T of Melrose Inc. For Structures to be 55 Feet Versus the Permitted 40 Foot Maximum Height Limit on Parcels 66.36887.0004, 66.36887.0001, 66.37009.0502 AND 66.37009.0504
Council Member Klasen introduced Resolution No. 2017-38 Variance Requested by J-T of Melrose Inc. For Structures to be 55 Feet Versus the Permitted 40 Foot Maximum Height Limit on Parcels 66.36887.0004, 66.36887.0001, 66.37009.0502 AND 66.37009.0504. The motion was seconded by Mr. Frieler with a roll call vote recorded as follows: For: Council Member Klasen, Frieler, Christenson, Thieschafer, and Mayor Finken; Against: None.
Mayor Finken stated that MADA Board Member Gene Enneking has resigned his position on the MADA board. Don Brower has submitted an application for appointment to the MADA Board to fill the vacancy.
Mayor Finken appointed Don Brower to the MADA Board to fill the vacancy created with the resignation of Mr. Enneking. The Council concurred with the appointment. The term will expire on 01/01/2020.
Mayor Finken noted that in 2008, Stearns County created an All-Hazard Mitigation Plan that outlined hazards that the City of Melrose is exposed to, strategies to reduce or eliminate those hazards, and the time frame for implementing these strategies. The City signed a letter of intent to be a part of this planning process, and participated in the process and in December 2011 adopted Resolution No. 2011-53 Resolution of the City of Melrose Adopting of the Stearns County All-Hazard Mitigation Plan. Stearns County has updated the plan.
A motion was made by Mr. Klasen, seconded by Mr. Thieschafer and unanimously carried adopting Resolution No. 2017-34, Resolution of the City of Melrose Adoption of the Stearns County All- Hazard Mitigation Plan.
Mayor Finken stated that Jenny Mayers on behalf of the Transportation Committee is asking for consideration to increase the city’s 2017 contribution to the Tri Cap bus service from $2,500 to $3,500. They are also soliciting donations from other various organizations. The bus service continues to see increased usage; however, the service is largely funded through donations. Council member Thieschafer was in support of the additional contribution, however would like to encourage donation solicitations from other organizations and therefore recommended the additional $1,000 contribution be a matching contribution with a maximum of $1,000.
A motion was made by Mr. Thieschafer seconded by Mr. Frieler and unanimously carried approving the city’s 2017 contribution in the amount of $2,500 with an additional $1,000 maximum matching contribution.
Mayor Finken stated that the City of Melrose entered a branch library agreement with Great River Regional Library (“GRRL”) in July 2004. In July 2016, GRRL adopted a new branch library agreement for use in its system. The new branch library agreement was submitted to the City of Melrose in August 2016 for review. Melrose City staff, in conjunction with the Cities of Sauk Centre and Albany, proposed several revisions to the proposed July 2016 branch library agreement. Following discussions with GRRL, a revised branch library agreement was submitted to Albany, Sauk Centre, and Melrose in late 2016. The revised branch library agreement addresses most of the concerns raised by City staff. The new branch library agreement, as revised, has been adopted by Albany and Sauk Centre, GRRL has requested that Melrose also adopt the agreement
City staff recommends adoption of the new GRRL branch library agreement, as revised.
A motion was made by Mr. Christenson, seconded by Mr. Klasen and unanimously carried approving the GRRL branch library agreement.
Police Chief Craig Maus has contacted Stearns County regarding the termination of contract for police services. Chief Maus has submitted notice of termination of contract effective July 28, 2017 or sooner.
Mayor Finken stated that the Council at its May 18th 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 time line 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.
Community Development Director Creelman noted that on May 24th, 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. Community Development Director Creelman has been in contact with the developer and will provide an update. The Council to schedule 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
Council Member Thieschafer introduced Resolution No. 2017- 36 Calling for 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. The motion was seconded by Mr. Christenson with a roll call vote recorded as follows: For: Council Member Thieschafer, Klasen, Christenson, Frieler and Mayor Finken; Against: None.
Community Development Director Creelman stated that on June 5th, a request for TIF assistance was submitted to City staff for a business wanting to develop in the C-2 District. MADA at its June 13th meeting recommended to the Council to approve the TIF assistance for the development. Community Development Director Creelman has been in contact with the developer and will provide an update.
The Council to schedule 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.
Council Member Klasen introduced Resolution No. 2017-37 Calling for 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. The motion was seconded by Mr. Frieler with a roll call vote recorded as follows: For: Council Member Klasen, Frieler, Thieschafer, Christenson, and Mayor Finken; Against: None.
The following informational items were reviewed:
a. The minutes from the Utilities Commission’s May 8 Regular Meeting
b. The following is a list of upcoming schools and conferences:
1) QuickBooks Training: June 22, Stacy Funk
2) Accounting and Audit Update, Webinar: June 2, Tessa Beuning
3) Fraud Update, Webinar: June 8, Tessa Beuning
4) MCFOA Region III Meeting: June 29, Patti Haase
5) Revenue Recapture: May 9, Sharon Blaskowski
c. Great River Regional Library Update
A motion was made by Mr. Klasen, seconded by Mr. Frieler and unanimously carried that the meeting be adjourned at 7:30 p.m.
Patricia Haase, City Clerk