The Melrose City Council met in a Regular Meeting on Thursday, March 16, 2017 at 6:00 p.m. at the Melrose City Center pursuant to due notice being given thereof. Present were Council Members Dick Christenson, Josh Thieschafer, Justin Frieler, and Mayor Joe Finken, City Administrator/Treasurer Michael Brethorst and City Clerk Patti Haase. Mayor Finken presided thereat. Council Member Tony Klasen arrived at 6:04 p.m. 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. Thieschafer seconded by Mr. Frieler 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 21 German Student Visit Meeting, the February 21 Special Meeting, the February 23 Regular Meeting, and the February 23 Special Meeting with Area City and Township Meeting
b. list of bills in the amount $186,266.46
c. list of investments for the month of February
d. Ambulance Coordinator Jenn Tschida is requesting approval be given to the appointment of Santina Lovelace and Beth Eggert to the Ambulance Department contingent upon them passing their NREMT test, and passing pre-employment physicals and drug tests. If approved, both individuals could start with the Department on April 1.
e. Resolution No. 2017-19, Resolution Approving Gambling License that would grant a gambling license to the Melrose Lions for a permit at Melrose 1 Stop – 423 2nd Avenue SW
f. Resolution No. 2017-20, Donation from Scott Bussman/Interstate Service Center for labor in servicing of Melrose fire truck #505 at an approximate value of $600
A motion was made by Mr. Frieler, seconded by Mr. Christenson and unanimously carried to approve the Consent Agenda items.
Mayor Finken presented a Certificate to Melrose Gymnast Mady Brinkman – 2017 Minnesota State High School Class A Uneven Bar Champion.
Chamber Director Sara Hoffner gave a brief update on the Chamber efforts. The Chamber is host of the Spring Expo April 28 at the Melrose Elementary Gym. Also, the City Wide Garage Sale will take place May 4-6. The Chamber has sold out all the pots for the Street Beautification Project. Chamber President Sophia Sabinash has been spearheading this project. This year sponsorship will include a sign thanks to CAP Enterprises and Sign Lava LLC. You may sponsor as a family, a business, or sponsor a pot in memory of a loved one. Planning for the 2017 Riverfest is already underway. Riverfest will be held June 23rd to the 25th. The Riverfest Celebration will include the Miss Melrose and Little Miss Melrose Pageant.
Police Chief Craig Maus presented the Police Department’s February report. He noted there were 253 calls for service during that month, compared to 314 for February 2016. A total of 11 citations were written for the month of February 2017. The year-to-date number of calls is 502 compared to 650 in 2016. For the month of February 2017, the Department received 20 agency assist calls. Chief Maus also mentioned that animal licensing will begin May 1-30. He reminded dog owners of the habitual barking ordinance.
Planning & Development Director Creelman provided an update on the March 6 Planning & Zoning Commission meeting and the March 9 MADA meeting. The Planning and Zoning Commission held a public hearing for giving consideration to amending City of Melrose Zoning Ordinance. The purpose of the purposed amendment is to update existing zoning-related regulations. Zoning ordinance 604.08 currently requires all accessory structures with a door facing an alley to be set back 20’ from alley right-of-way. New proposed language would require any accessory structures with a door more than 6 feet in width facing an alley to be set back 20’ from the alley right-of-way. The Commission is recommending the Council adopt the revision to the zoning code as presented. This will be addressed later this evening.
Mr. Creelman stated that MADA at its March 9 meeting approved an additional 8 deferred loan applications. Eleven projects have been approved so far and there are additional applications that are on hold. Currently there is approximately $2,000 left in program. MADA will be asking the Council to consider additional funding of this program.
City Attorney Scott Dymoke reported on projects he has been working on for the City:
• Community Development, JOTS Project: Worked with city staff and JOTS representatives to prepare and coordinate closing on property sale.
• Community Development, 400 Block: Worked with city staff to prepare requests from Legislature for financial assistance with 400 Block recovery
• Community Development, Melrose Multi-Family Project: Prepared amendment to option agreement between City of Melrose and Melrose Multi-Family.
• Nuisance Actions: Prepared and forwarded to City staff proposed City Council Orders directing abatement of nuisance conditions on Melrose Community LLC property.
• Attended hearing on Kraker nuisance and obtained order to abate from court.
Mayor Finken opened the public hearing at 6:18 p.m. to abate a nuisance pursuant to Melrose City Code Section 93.21 on the following property
1. 400 Block Kraft Drive SW (Parcel No. 66.36436.0000)
City Administrator Brethorst presented the Affidavit of Publication of the hearing notice which was published.
City Attorney Scott Dymoke reviewed the process to abate nuisances. Chief Craig Maus presented the nuisance report and photographs of the nuisance violations.
No further comments were forthcoming. The Public Hearing was closed at 6:24 p.m.
Mayor Finken then opened the next Public Hearing at 6:24 p.m. for the purpose to consider the request for an On-Sale Intoxicating Liquor License and Sunday On Sale Liquor License to John Dough’s Inc, DBA John Dough’s Pizza. A public hearing is required because of City Code Chapter 113 Liquor Regulations. The regulations require a public hearing before granting a new license or transfer of a license.
City Administrator Brethorst presented the Affidavit of Publication of the hearing notice which was published.
No further comments were forthcoming. The Public Hearing was closed at 6:26 p.m.
Mayor Finken opened the Public Hearing at 6:26 p.m. on: (a) the proposed establishment of Municipal Development District No. 10; (b) the proposed establishment of Economic Development Tax Increment Financing District No. 10-1 within Development District No. 10; (c) the proposed adoption of a Development Program for Municipal Development District No. 10; and (d) the proposed adoption of Tax Increment Financing Plan relating thereto; and (e) consideration of a business subsidy to Jennie-O Turkey Store, 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 to Jennie-O Turkey Store, 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.
City Administrator Brethorst presented the Affidavit of Publication of the hearing notice which was published.
Traci Ryan with Ryan Consulting provided an overview of TIF District 10-1, along with the TIF District Findings and Statement of Facts.
No further comments were forthcoming. The Public Hearing was closed at 6:37 p.m.
Mayor Finken then opened the Public Hearing at 6:37 p.m. on: (a) the proposed establishment of Municipal Development District No. 11; (b) the proposed establishment of Economic Development Tax Increment Financing District No. 11-1 within Development District No. 11; (c) the proposed adoption of a Development Program for Municipal Development District No. 11; and (d) the proposed adoption of Tax Increment Financing Plan relating thereto; and (e) consideration of a business subsidy to Melrose Multifamily LLC, 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 to Melrose Multifamily LLC 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.
City Administrator Brethorst presented the Affidavit of Publication of the hearing notice which was published.
Ms. Ryan provided an overview of TIF District 11-1 as well as the Statement of Facts.
No further comments were forthcoming. The Public Hearing was closed at 6:41 p.m.
Mayor Finken stated that earlier this evening a Public Hearing was held to abate nuisances pursuant to Melrose City Code Section 93.21 on the following property 1. 420 2nd Street SW Melrose, MN.
City Attorney Dymoke stated that if the Council wishes to move forward with the abatement of the nuisance conditions for the above listed property the Council will need to take action adopting the resolution. In so doing, the property owner has 30 days in which to come into compliance with the applicable City codes and regulations. A motion for summary enforcement of the order will be made to the Stearns County District Court unless corrective action is taken, or unless an answer is filed within the time specified in Minn. Stat. §463.18 which is 20 days. If the City must take action to enforce this order, all enforcement costs will be specially assessed against the property and collected in accordance with Minn. Stat. §463.22, §463.21 and §463.161.
Council Member Frieler introduced Resolution No. 2017-14, Resolution Ordering the Abatement of Nuisance Conditions Located at 420 2nd Street SW Melrose, MN. The motion was seconded by Mr. Thieschafer with a roll call vote recorded as follows: For: Council Member Frieler, Thieschafer, Christenson, Klasen, and Mayor Finken; Against: None.
The Council next gave consideration to a request from John Dough’s Inc. DBA John Doughs Pizza for an On-Sale Intoxicating Liquor License and Sunday On-Sale Intoxicating Liquor License. A background investigation by the Melrose Police Department has been completed and no records have been found.
Minnesota law requires cities to obtain proof that all licensees provide workers’ compensation insurance for their employees. Also, the City must obtain licensees’ social security numbers and Minnesota and federal tax identification numbers for the Department of Revenue’s use. The documents have been received.
The City Clerk has received all the required documentation.
A motion was made by Mr. Thieschafer, seconded by Mr. Frieler and unanimously carried approving the On -Sale Intoxicating Liquor License and Sunday On-Sale Intoxicating Liquor License to John Dough’s Inc. DBA John Dough’s Pizza.
Mayor Finken stated that Minnesota law allows for the creation of a Tax Increment District to allow for building and improvement of private properties. The development will create an estimated market value of $21,846,000. The present value of expected tax increment over the duration of the District is $4,215,538. The expected increased market value of the site is an incremental increase of approximately $500,000. Development Consultant Traci Ryan, Briggs and Morgan Attorneys at Law and Dymoke Law Office have been retained to aid in the legal and regulatory requirements of this proposal. Jennie-O Turkey Store agrees and support the development of and creation of the District.
Council Member Christenson introduced Resolution No. 2017-15, Approving the Establishment of Municipal Development District No. 10, the Adoption of a Development Program Relating Thereto, the Creation of Tax Increment Financing District No. 10-1, and Adoption of the Tax Increment Financing Plan Relating Thereto. The motion was seconded by Mr. Frieler with a roll call vote recorded as follows: For: Council Member Christenson, Frieler, Klasen, and Mayor Finken; Against: None; Abstain: Council Member Josh Thieschafer due to a conflict of interest.
Mayor Finken noted that Minnesota law allows Municipalities to enter into a development agreements to aid in the development of tax base, increase or retain jobs. The Melrose Area Development Authority and Melrose Planning Commission have reviewed the plan and affected parcels and recommend approval of said development agreement. Development Consultant Traci Ryan, Briggs and Morgan Attorneys at law and Dymoke Law Office have been retained to aid in the legal and regulatory requirements of this proposal. Jennie-O Turkey Store agrees and support the development
Council Member Klasen introduced Resolution No. 2017-16, Approving the Business Subsidy and Development Agreement by and Between the City of Melrose and Jennie-O Turkey Store, Inc. The motion was seconded by Mr. Frieler with a roll call vote recorded as follows: For: Council Member Klasen, Frieler, Christenson, and Mayor Finken; Against: None; Abstain: Council Member Josh Thieschafer due to a conflict of interest.
Mayor Finken stated that Minnesota law allows for the creation of a Tax Increment District to allow for building and improvement of private properties. The proposed development will create an estimated market value of $5,252,800. The present value of expected tax increment over the duration of the District is 2,440,603. The expected increased market value of the site is an incremental increase of approximately $500,000. Development Consultant Traci Ryan, Briggs and Morgan Attorneys at law and Dymoke Law Office have been retained to aid in the legal and regulatory requirements of this proposal.
Council Member Klasen introduced Resolution No. 2017-17, Approving the Establishment of Municipal Development District No. 11, the Adoption of a Development Program Relating Thereto, the Creation of Tax Increment Financing District No. 11-1, and Adoption of the Tax Increment Financing Plan Relating Thereto. The motion was seconded by Mr. Thieschafer with a roll call vote recorded as follows: For: Council Member Klasen, Thieschafer, Christenson, Frieler, and Mayor Finken; Against: None.
Mayor Finken stated that as of February 17th, City staff was presented with the Response Action Plan for the Kraft lot. Contamination has been shown to be more extensive than previously believed, however there are funding sources from DEED that could help cleanup this site. There are two grant application that could be applied for. One being for Contamination Clean Up and the other is Demolition. Now that it is know that the Kraft Site requires additional clean up, it is unlikely a developer will want to take possession of the site until such time it is clear of concern. Earlier today Community Development Director Mike Creelman attended a Contamination Clean Up training session at which Mr. Creelman discovered that the application requires additional information on the specific site. Therefore Mr. Creelman is recommending that the City conduct further testing of the site prior to making the November grant application. Therefore, no action is required at this time. Resolution No. 2017-18 Contamination Clean-Up Application was not brought to the table.
The Council next gave consideration to the quote received from the League of Minnesota Cities Insurance Trust (LMCIT) for worker’s compensation insurance for the period of March 7, 2017 through March 7, 2018. The net premium costs for the upcoming period are $81,229. The quote in 2016 was $73,985, which is an increase of 67%. The experience modification increased to 1.06% for the 2017-2018 coverage period, up from 1.05% for the 2016-2017 coverage period. It is recommended that the City again approve the regular premium option.
The General Fund share of the premium is $56,161 and the Utilities’ share is $25,068, compared to $51,153 and $22,832, respectively for the past year.
The Utilities Commission approved the workers comp.. insurance renewal quote from LMCIT in the amount of $81,229 at its March 13 meeting.
Council Member Thieschafer asked if staff had obtained additional quotes as he felt the premium was high. Finance Director Beuning stated that the premium was calculated based on a three-year usage average. There was a significant claim filed in 2015 which has caused the increased. The Council has requested staff obtain an additional quote, however due to time constraints the Council will act on the LMCIT quote as presented.
A motion was made by Mr. Thieschafer, seconded by Mr. Klasen and unanimously carried concurring with the Public Utilities Commission approving the workers comp. insurance renewal quote from LMCIT in the amount of $81,229 of which the General Fund share is $56,161.
Mayor Finken stated that at the Council’s February 23 meeting approval was given to an internal posting to fill full-time Police Officer position vacated by Officer Aaron Baros. Two applications were received and interviews were conducted on Thursday, March 9 by Police Chief Craig Maus, City Administrator Brethorst, and HR Coordinator Diane Gruber. The applicants were Matt Moorman and Jeffrey Eggert, both current part-time Officers with the Melrose Police Department. It is the Committee’s recommendation that part-time officer Jeffrey Eggert be hired to fill the position. Mr. Eggert has been in law enforcement for 9 years, is an instructor for Defensive Tactics, and has worked for the City as a part-time officer since August 2015. He is also a member of the Melrose Fire Department. Mr. Eggert and his family are members of the community. The Committee recommends Mr. Eggert be hired at Step 1.
A motion was made by Mr. Christenson seconded by Mr. Frieler and unanimously carried approving the hire of Jeffrey Eggert as a full-time Police Officer at Step 1 on the pay-scale.
A motion was then made by Mr. Frieler, seconded by Mr. Christenson and unanimously carried approving the hire of a part-time Officer to fill Mr. Eggert’s part-time position.
Mayor Finken stated that with safety and practical use being the first concerns, Community Development Director Creelman and City Attorney Scott Dymoke have drafted new verbiage for an existing zoning ordinance.
Existing zoning code reads as follows: 604. Accessory Structures (Ord No 12-10-2015-2) Accessory structures are allowed in Residential districts based on the following standards: .08
(2) Accessory structures shall not exceed 2,000 square feet (including total square footage of all detached structures) Accessory structures with a door facing an alley must be set back 20’ from alley right-of-way.
Proposed: Any accessory structures with a door more than 6 feet in width facing an alley must be set back 20’ from the alley right-of-way
Council Member Thieschafer introduced Ordinance No. 3-16-2017. The motion was seconded by Mr. Klasen with a roll call vote recorded as follows: For Council Member Thieschafer, Klasen, Christenson, Frieler, and Mayor Finken; Against: None.
Mayor Finken noted that bids for the 2017 Bituminous Chip Seal were received on Monday, March 13, 2017. Seal Coat Two bids were received. The low bid was received from ASTECH Corporation in the amount of $60,073.03 for base bid and $2,945.07 for Alternate No. 1 for a total of $63,018.10. WSB recommends the Council consider these bids and award a contract for the base bid and alternate No. 1 for a total of $63,018.10 to ASTECH Corporation
A motion was made by Mr. Klasen, seconded by Mr. Thieschafer and unanimously carried awarding the base bid and alternate No. 1 for a total of $63,018.10 to ASTECH Corporation
Mayor Finken stated that The Council and Commission will meet on Thursday, April 20, 2017 at 5:00 p.m. to receive the 2016 Audit Report and Auditor’s Management Letter.
The following informational items were reviewed:
a. Utilities Commission’s February 13 Regular Meeting minutes.
A motion was made by Mr. Frieler, seconded by Mr. Klasen and unanimously carried that the meeting be adjourned at 7:30 p.m.
Patricia Haase, City Clerk
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