The Melrose City Council met in a Regular Meeting on Thursday, March 15, 2018 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, and Mayor Joe Finken, City Administrator Michael Brethorst and City Clerk Patti Haase. Mayor Finken 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. Frieler seconded by Mr. Klasen and unanimously carried to approve the agenda as amended.
Mayor Finken then opened the floor to public comment. There were no comments.
The following items were considered for approval under the Consent Agenda:
a. the minutes from the Council’s February 12 German Student Visit Meeting, the February 12 Special Meeting with the Melrose Area Development Authority, the February 15 Regular Meeting, and the February 15 Special Meeting with Area City and Township Meeting Minutes
b. list of bills in the amount of $ 309,396.27
c. list of investments for the month of February
A motion was made by Mr. Christenson, seconded by Mr. Thieschafer and unanimously carried to approve the Consent Agenda items.
Mayor Finken presented a Certificate to Melrose Gymnast Greta Klaphake – 2018 Minnesota State High School Class A Vault Champion.
Dan Behnke District Manager and Jason Hartman from Waste Management provided an update to the Council and community on yard waste disposal and provide a general update on the Melrose Waste Management Operations.
According to Mr. Behnke bagged leaves would still be collected by Waste Management. Waste Management would prefer residents use the container as much as possible. Council Member Thieschafer noted that the letter that was sent out stated that the yard waste program was mandatory, however now residents have the option to opt out. Mr. Behnke stated that in order for yard waste to be collected they must have a yard waste cart to participate. They will not collect excess bags if they do not have a cart and participate in the yard waste program. Council Member Thieschafer requested that another mailing be sent out further explaining the program.
Melrose Community Education Director. Stacy Austing-Jacobson provided an update to the Council and community on the utilization of the City’s contribution that is received each year. Ms. Jacobson stated that the City has donated $9,250 to the Summer Rec program for the past 17 years. This donation has given the Summer Rec program the opportunity to keep the programs affordable for families. Ms. Jacobson stated that Community Ed and Summer Rec is open to everyone. Ms. Jacobson noted that other communities in the school district do offer some summer youth programs.
The Council is suggesting that Ms. Jacobson request donations from other groups and organizations and or ask for contributions from other communities within the Melrose Area school district. Ms. Jacobson noted that if the City of Melrose reduces its donation she will solicit donations. She also stated that when she sees a need in a specific program she does ask for money, however she does not belief it is ethical to have a large fund balance. Ms. Jacobson noted that she has a list of civic organizations and she rotates when making requests. Ms. Jacobson noted that many cities have a park and rec program or are in partnership with the school district for a summer recreation program.
Council Member Klasen stated that if there would be a change it would most likely be slow with a scaled back donation to see if other cities or organization could fill the budget gap.
Police Chief Craig Maus presented the Police Department’s February report. He noted there were 338 calls for service during that month, compared to 253 for February 2017. A total of twenty-nine citations were written for the month of February. The year-to-date number of calls is 680 compared to 502 in 2017. For the month of February 2018, the Department received 19 agency assist calls. Chief Maus reported that he attended a training for Public Safety Employees Chief Maus also reported that there have been counterfeit $100 bills reported at local businesses. They are using the design of 1988 bills and older. Chief Maus also commented that the Police Department has received requests for licensing side by sides, ranger’s prowler’s, etc. The City’s current ordinance defines All-Terrain Vehicle or ATV as a motorized flotation-tired vehicle with at least 3 but no more than 6 low pressure tires having an engine displacement of less than 1,000 cubic centimeters and a total dry weight of less than 1,000 pounds. This definition came from the states definition of an ATV and has not been updated since the machines became as big as they have. The state has updated their definition to 2,000 pounds. Therefore, Chief Maus is recommending that the City consider updating code to emulate the state’s definition. Council member Thieschafer asked that this be brought before the Council for consideration at the April meeting. Council Member Christenson inquired as to the number of drug related incidents the department has seen in the last six months. Chief Maus responded that he is estimating two or three drug related incidents per month, mostly related to marijuana or drug paraphernalia. All other drug related information is passed on the drug task force. Council Member Klasen recommended that once the department gets back to a five-officer department, perhaps staff can dedicate time to drug surveillance.
City Attorney Scott Dymoke reported on projects he has been working on for the City:
• Cable Franchise Renewal: Worked with City staff to prepare temporary extension of cable franchise agreement with Charter.
• East Substation: Worked with City staff to address issues with metering contracts
• 1st Street NE: Prepared paving reimbursement agreements between Melrose and adjoining property owners for use with 1st Street NE improvement project.
Mayor Finken stated that Charter’s Cable Franchise Agreement with the City of Melrose has expired. Melrose received a timely renewal notice from Charter, but the project has not been completed. By letter dated February 16, 2018, charter requested that Melrose agree to an indefinite extension of the current agreement while franchise renewal negotiations proceed The City Administrator is recommending that the Council agree to an extension through December 31, 2018. City Attorney Dymoke prepared a revised version of the extension, which provides that current franchise agreement remains in place until the end of the year A motion was made by Mr. Christenson, seconded by Mr. Klasen and unanimously carried approving the extension agreement.
Mayor Finken noted that the City has received correspondence from the Stearns County Auditor’s Office on tax forfeited properties in the City of Melrose. With approval from the Council the identified parcels will be scheduled for sale as soon as possible following state approval. The Council gave consideration approving the classification of the forfeited lands as non-conservations lands and order the tract(s) to be sold at public sale thereof in accordance with Minnesota Statutes Chapter 282.01A motion was made by Mr. Thieschafer, seconded by Mr. Klasen and unanimously carried approving the classification of the forfeited lands as non-conservations lands and order the tract(s) to be sold at public sale thereof in accordance with Minnesota Statutes Chapter 282.01 and that the City foregoes the option to purchase the property. The Council next made a determination as to the assessment(s) to be recertified to the County. This information will also be provided to any perspective buyer. These amounts will then need to be recertified to the County. Prior to tax forfeiture parcel identification number 66.37274.0000 Lot 005 Block 031 of Townsite of Melrose had assessments of $20,886.74 principal and $1,363.07 in interest for a total of $22,249.81. On parcel 66.36436.0000 of 13.58A E2NW4NW4 less 2.34 Acres for Hwy and Less 6.42 acres S of 1-94 City of Melrose. This parcel has assessments of $12,500 principal and $149.66 interest. A motion was made by Mr. Frieler, seconded by Mr. Thieschafer and unanimously carried recertifying assessments on parcel Identification number 66.37274.0000 Lot 005 Block 031 of Townsite of Melrose in the amount of $20,886.74 (principal only) and to assess parcel 66.36436.0000 of 13.58A E2NW4NW4 less 2.34 Acres for Hwy and Less 6.42 acres S of 1-94 City of Melrose. In the amount of $12,500. (principal only) Upon further review the assessed amount was incorrectly stated. The total amount is $12,649.66 as $149.66 is the 1-4” stub in charge not interest. Therefore, the amount submitted to the county was $12,649.66.
Mayor Finken noted that at the Council’s February 15 meeting approval was given staff to begin the hiring process to backfill the full-time police officer position vacated by Officer Stephanie Robak. Fifteen applications were received. Interviews will be held on Monday, March 12. It is the Committee’s recommendation that part-time officer Matt Moorman be hired to fill the position. The Committee recommends Mr. Moorman be hired at Step 1 with a start date of March 26. A motion was made by Mr. Frieler seconded by Mr. Christenson and unanimously carried approving the hire of Mr. Moorman as a full-time Police Officer at Step 1 on the pay scale contingent upon successful completion of a background check, psychological evaluation, and pre-employment physical and drug test.
Mayor Finken noted that two bids were received for the 2018 Micro Seal street project. The low bid was received from ASTECH Corporation in the amount of $29,160.00. A motion was made by Mr. Klasen, seconded by Mr. Thieschafer and unanimously carried awarding the bid to ASTECH in the amount of $29,160.00
Mayor Finken stated that bids were received for the 2018 Bituminous Chip Seal Project on Thursday March 8, 2018. Three bids were received and reviewed by WSB & Associates for accuracy. The low bid was from ASTECH in the amount of $108,497.65. WSB is recommending that the City Council award a contract to ASTECH for $108,497.65 Add Railroad Avenue Fog Seal plus $4000. A motion was made by Mr. Thieschafer, seconded by Mr. Frieler and unanimously carried awarding the contract to ASTECH for the amount of $108,497.65
Mayor Finken stated that the City of Melrose is actively working to find funds for the Rock Arch Rapids. The DNR at a previous meeting stated that they would assist us in our efforts to secure most if not all funding of the Dam. Melrose is currently, working with the Sauk River Watershed to secure funding for a portion of the Bridge bank stabilization and channel realignment costs. The City did explore options with the Watershed to help offset the costs for the Rock Arch Rapids, however, additional review will be required to make a final determination as to partnerships with the Watershed for the Rock Arch Rapids project. Stearns County Soil and Water is actively drafting their 2018 grant funding applications. This will include Stream Restoration prioritization as funded through the Lessard Sam’s Grant as managed through the DNR for the Melrose Rock Arch Rapids. This grant requires a minimum of a 10% local match. As this preliminary grant application deadline was not known prior to the last Council meeting, staff has authorized the Stearns County Soil and Water, for the preliminary grant proposal to state the City would agree up to a 10% match. Without this, the City would be ineligible to apply for the grant and must wait for the 2020 application. This does not obligate the City. If the preliminary grant application is approved, it will then require formal action of the Council to support the application with a 10% local match at that time. This is only if, the Council would support a full application. There is no cost for the city to submit the preliminary grant request through the Soil and Water Office.
WSB on behalf of the City of Melrose is writing an LCCMR grant which is funded through the MN State Lottery. The City is requesting State Bonding dollars as well as seeking funding through the Dam Safety / Replacement fund. There are other funding sources available that could be applied for, however, they require additional matches. For planning purposes having a local match within the preliminary applications increase the likelihood of being approved for a full application. Without that, the applications have a much lower chance of being forwarded to the full application.
The Engineering Estimates for the Rock Arch Rapids are still being developed. Therefore, we do not have a solid number to use for estimates. The educated guesses for the Rock Arch is approximately $1.8 million with a 20% contingency. When combined with the channel relocation costs for the bridge, preliminary engineering, final engineering the overall cost is estimated to be approximately $3.46 million. Of this cost approximately 50% is related to the channel re-alignment for the bridge relocation. We have included the channel re-alignment costs in the grant funding requests to cover some of these bridge related costs. Better estimates will be developed in the coming months. If the City were to use 20% local match as the starting point for preliminary grant requests, the City’s matched estimate would vary from $300,000 to $700,000. The funds to pay for this could come from a variety of sources. The City has committed to funding the Bridge, so any sort of funds that are secured through the Watershed for the Bridge could be reallocated to the Rock Arch. A portion of the Retaining Wall could be funded through possible TIF increment within the Kraft Lot Redevelopment District. Plus, funds from the sale of the Hospital and possible unrestricted funds within the General Fund. The last option is to bond for funds once the 2011 GO Refunding Bond is paid off in 2020. The Council looked at bridge design options based on the installation of the Rock Arch Rapids.
After further discussion the Council by consensus acknowledged that a City match will be required to obtain grant funding.
Mike Nielson with WSB & Associates provided an update on the 1st Street NE project. Based on the Phase II Environmental Report completed for the Kraft Lot, there is a possibility of exposing contaminated material adjacent to the Kraft Lot during the installation of the sanitary sewer, watermain and storm sewer in 1st Street. WSB & Associates has submitted a proposal for Environment Oversight Services should it be required for the project. A motion was made by Mr. Frieler seconded by Mr. Christenson and unanimously carried approving the proposal from WSB & Associates for Environmental Oversight Services for the 2018 1st Street NE Reconstruction Project. Council Member Thieschafer requested that staff obtain a proposal from another vender for environmental oversight.
Mayor Finken stated that staff has been meeting with potential developers regarding the redevelopment of the Kraft lot including a potential mix of residential and commercial uses. City Staff is looking at a strategy to have the city do some of the State Farm building demolition and site clean-up work up-front so that we can use legislative funds early (in the event the deadline is not extended).
Mayor Finken noted that at its March 8, 2018 meeting, MADA reviewed and is recommending approval of the Business Assistance Agreement that would reimburse Jim and Lisa Illies for the $85,743.43 of previously incurred fire remediation expenses and Tax Abatement Assistance. The Agreement represents the previous discussions with the council and business with notable items being:
1. That Illies must have the west commercial space “rentable” not “rented” within 6 months of receiving the initial assistance amount;
2. Instead of the City withholding a portion of the abatement assistance to cover the cost of the work necessary to provide the assistance, the full abatement amount of $15,000 will be provided to do the “Additional Improvements” and the City will invoice Illies for the associated costs;
3. The condition to create 1 job was removed because there is no way to enforce this under this situation.
A motion was made by Mr. Thieschafer, seconded by Mr. Frieler and unanimously carried approving the Business Assistance Agreement.
The Parks Board at their March 12, 2018 discussed the Pathways Master Plan. They have endorsed the project and recommend the City Council enter into a contract with WSB to perform said work. The City Council at their February 15 meeting, has asked that the Park Board consider the following: The City of Melrose, Melrose Public Schools and CentraCare Health is interested in enhancing its current sidewalk, trail, and roadway network in order to support more pedestrian and bicycle activity and healthy lifestyles for its residents. As part of the City’s Comprehensive Plan, a Parks and Pathways Map was prepared that proposes new sidewalk and trail (pathway) improvements as the community develops. Additional effort is needed to evaluate the City’s existing facilities and identify improvements that will enhance safety and access for bicyclists and pedestrians to reach key community destinations including parks, schools, the Lake Wobegon Regional Trail, and commercial and employment areas.
The Stearns County Public Health SHIP program has allocated grant funds for the City of Melrose to develop the Pedestrian and Bicycle Master Plan as a strategy to support active transportation and improve the overall health of the community. The Bicycle and Pedestrian Master Plan will serve as a tool to guide the long-term programs, policies and physical projects that will support walking and bicycling in the City of Melrose. The intent of this plan is to transform Melrose into a community where choosing to walk or bicycle is a safe, convenient and enjoyable recreation and transportation option for users of all ages. The cost for the plan is $13,902. There are two (2) ala carte options that could be added that are social pinpoint interactive mapping ($1,244) and a Public Open House Meeting ($2,772). In lieu of the Public Open Houses, we could simply pose the questions to the various Boards and Commissions and their feedback. The grand total for the all items would be: $17,918. The SHIP program would fund up to $10,000 and remaining would be paid for local partners. It is proposed not to conduct the alacart options for the WSB lead community forum and online survey. It is the opinion of the SHIP and CentraCare that they will be able to assist with this. So the cost to perform this will be: $13,902. If the $4,000 grant is awarded by the Initiative Foundation, the overall cost share would be as follows.
No Grant % With Grant % Discount with
$4k grant
Ship Grant 10000 0.719321 $7,122.72 $2,877.28
Melrose 1500 0.107898 $1,068.41 $431.59
School 1500 0.107898 $1,068.41 $431.59
CentraCare 902 0.064883 $642.47 $259.53
$13902 $4,000
The development of the plan will allow parties to then apply for capital grants to offset the cost for future public pathways. These may include Safe Routes to School funding, Legacy Funding, CentraCare Foundation, etc.
Council Member Klasen expressed his concern of the obligation to implement the plan once it has been prepared. Mr. Klasen also noted the potential budget impact and possibly having to relinquish some of the control to the other partners. After further discussion a motion was made by Mr. Frieler to contract with WSB & Associates for Engineering Services for Bicycle and Pedestrian Master Plan contingent upon received the SHIP. The motion was seconded by Mr. Christenson with a roll call vote recorded as follows: For: Council Members Frieler, Christenson, Thieschafer, and Mayor Finken; Against: Council Member Klasen.
Mayor Finken stated that the City Council has requested the Melrose MADA Board review building a Welcome Sign vs. a Billboard to replace that was destroyed by the Sept. 2017 windstorm. The MADA Board has this at their November meeting and again at their March 2018 meeting and recommend replacing the billboard with a two (2) faced billboard. Efforts have been made with the LMC to determine reimbursements for the billboard. As per verbal comments from League of MN Cities Insurance Adjustor, the City will receive up to $15,646.50 from insurance proceeds if the billboard is replaced. The cost for the sign must meet or exceed the $15,646 insurance coverage. The City would receive approximately $14,000 if the billboard is not rebuilt. Correspondence with Stearns Electric Cooperative has occurred. If the City were to build a billboard on the site, they would support renewing the lease. However, a general welcome sign would be a different use from the original intent of the lease. Additionally, they ask that the City update the lease to reflect current lease agreement. The compensation would remain the same term. At the November 9, 2017 MADA meeting, MADA recommended to the Council to replace the one-sided west bound I-94 billboard that was destroyed by the September 2017 windstorm and use the Insurance proceeds toward the purchase a new two-sided billboard.
2-sided Structure: $25,450 (poles, lights, facing, brackets, etc.) Froggy
Two vinyl skins (if installed at same time as construction): $1,450 (vs. $2,200)
Engineering: $500
Permitting / Misc.: $2,600
Total Cost: $30,000.00
$15,646.50 (insurance)
$5,000 (Private Donation)
$9,353.50 (total out of pocket)
The other option the Council asked the MADA Board to consider are putting up welcome signs in lieu of the billboard. Verbal estimates for a welcome sign similar to that of the attachment for the Care Center is approximately $25K not including electrical. It is estimated the cost would be just under $30,000
Staff has reached out to Spaeth Sod Farm to determine if they are interested in leasing land for a welcome sign. Based on their plans, they are not interested in placing a sign on their property. MRES Energy Services has been approached about funding a portion of the welcome sign and or billboard. They are willing to contribute up to $5,000 if their logo is on the welcome sign, however, they are not interested in funding traditional billboards. Ervin Bueckers has also donated $5,000 to the City which Mayor Finken recommends going toward the project. The MADA board was in support of the 2-sided billboard. The Council will make final determination as to funding once a closing price is received.
Council Member Klasen spoke with a past MADA Member who questioned the relevance and effectiveness of billboards, not to mention the cost to update. A motion was made by Mr. Finken approving the 2-sided billboard. The motion was seconded by Mr. Frieler with a roll call vote recorded as follows: For: Council Members Frieler, Christenson, and Mayor Finken; Against: Council Member Klasen, and Thieschafer.
Mayor Finken stated that the Local Board of Appeals and Equalization meeting will be held on Thursday, April 19, 2018 at 4:30 p.m. A quorum of the Council is required, At least one member must have Local Board of Appeal and Equalization training. Joe Finken and Justin Frieler are member certified. The Council and Commission will meet on Thursday, April 19, 2017 at 5:00 p.m. to receive the 2017 Audit Report and Auditor’s Management Letter.
Mayor Finken stated that the TIF project was completed as proposed and has exceeded the expectations for increment generation. MADA is recommending approval of the administrative action to pay off the Cornerstone (Twin Pines Catering) TIF Note early by utilizing the surplus increments that have and will be collected. Doing so will allow the TIF District to be decertified earlier than planned and will provide Danzl with funds to address his parking and drainage improvements as he sees fit. A motion was made by Mr. Klasen, seconded by Mr. Thieschafer and unanimously carried authorizing staff to make TIF payment to Mr. Danzl.
Mayor Finken noted that the City has received a request from the owner of the lot on the 400 Block as to if the City is still interested in purchasing the property. It was the consensus of the Council that the City is interest at the same offer that was presented in August of 2017.
The following informational items were reviewed:
a. Utilities Commission’s February 12 Regular Meeting minutes.
b. The following is a list of schools and/or conferences where registrations were made:1) MCMA Educational Conference, May 2-4 Attending: City Administrator Mike Brethorst.
c. Charter Communication Correspondence
A motion was made by Mr. Frieler, seconded by Mr. Klasen and unanimously carried that the meeting be adjourned at 7:50 p.m.
Patricia Haase, City Clerk