The Melrose City Council met in a Regular Meeting on Thursday, May 17, 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. Also in attendance were Attorney John Shockley, Attorney Jim Skloda, Traci Ryan with Ryan Development Consulting LLC, Joyce Duerr, Todd Ostendorf, Lois Lashinski, and Craig Heinze. 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. Christenson, 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 April 19 Local Board of Appeal and Equalization Meeting, the April 19 Special Joint Meeting with the Commission – Audit Review, the April 19 Regular Meeting Minutes, and the April 26 Special Meeting.
b. list of bills in the amount of $360,999.31.
c. list of investments for the month of April.
d. Donation Resolution No. 2018-19, donation in the amount of $250 from the New Munich Jaycees to the Melrose Area Chamber of Commerce for the Riverfest Celebration.
e. In accordance to the terms and payment agreement the City shall pay for work relating to the reconstruction of the 400 Block and non-400 Block street project. Due to the timing of the submittal process and likelihood of the tax bill not passing, it is recommended to allow staff to make payment and allow for up to a 20% adjustment in payment if final payment comes in higher. The funding for this is to be paid a portion by state funds and City general funds or possibly TIF if, and when, it becomes eligible.
$208,657.26 400 Block Share, $ 98,605.73 Non-400 Block Share, $307,262.99, Less 5% Retainer ($ 15,363.15) Pay $291,899.84
f. In accordance to the terms and payment agreement, the City shall pay for work relating to the cleanup of the Kraft lot. Due to the timing of the submittal process and likelihood of the tax bill not passing, it is recommended to allow staff to make payment and allow for up to a 20% adjustment in payment if final payment comes in higher. The funding for this is to be paid for by state funds and City general funds or possibly TIF, if and when it becomes eligible. Pay $65,216.00
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 of Appreciation to the volunteers of the Foster Grandparent Program.
Mayor Finken presented a Certificate to Hope Danzl – 2018 Minnesota State High School State Speech Champion – Humorous Interpretation.
Mayor Finken presented a Certificate to Paul Pundsack, Spencer Van Beck, Breanna Dragseth and Ericka Doetkott – 2018 FFA State Champions – Small Animal CDE.
Steve Soyka, candidate for Stearns County Sheriff, introduced himself and addressed the Mayor and Council on his campaign platform.
Police Chief Craig Maus presented the Police Department’s April report. He noted there were 441 calls for service during that month, compared to 241 for April 2017. A total of 31 citations were written for the month of April. The year-to-date number of calls is 1,528 compared to 1,013 in 2017. For the month of April 2018, the Department received 38 agency assist calls. Chief Maus reported that nuisance citations are down this year by approximately 100. Chief Maus noted that dog and cat licenses are due by the end of the month.
City Attorney Scott Dymoke reported on projects he has been working on for the City:
• Kraft/Riverview Site: Received and reviewed Site Plans, Zoning requirements, EAW requirements, and proposed Development Agreement for Kraft/Riverview site. Prepared summary of zoning and EAW issues and draft of purchase agreement.
• ATV Regulations: Reviewed applicable state statutes and regulations concerning use of ATVs on city streets. Prepared alternate drafts of ordinances for Council consideration
Finance Director Tessa Beuning presented the General Fund Financial First Quarter Report. Director Beuning noted that the General Fund revenue is at 6% and the expenditures are at 15%. Revenues are low because the first half of property tax revenue is not received until June. Also, the first half of LGA is not received until July. Property tax and LGA together make up 72% of the revenue budget. The revenue is running low for the MADA fund due to the transfers from the General Fund and the TIF funds not yet being made. Capital Project Funds: These funds include the Capital Improvement Fund, TIF Accounts as well as the 5th Avenue NE Bridge Improvement Fund. The TIF property tax payments have not been received yet this year, and interest income is running low. City staff will be reviewing the cash flow needs closely to work to ladder our investments to be able to capture a higher interest yield.
The City Council held a Public Hearing on Thursday, May 17, 2018 at 6:00 p.m., or as soon thereafter as the matter may be heard, at the Melrose City Center for the purpose of giving consideration to 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 by modifying portions of all of the existing sections and establishing new sections where necessary. The purpose of the proposed amendments is to update existing zoning-related regulations found in the C-2, Highway Commercial District, Section 222.04(5). The proposed verbiage is as follows: Convenience Grocery Store by eliminating the requirement of 3,200 square feet or less in conjunction to operation with a motor fuel facility. A copy of the current Zoning Ordinance containing the proposed modifications and additions is on file with the Planning and Zoning Department, Melrose City Center, 225 1st St NE, Melrose, MN 56352 and is available for review during normal business hours.
City Administrator Brethorst presented the Affidavit of Publication of the Hearing Notice which was published.
Community Development Director Lisa Atkinson provided a brief overview of the proposed amendment to the Zoning Code being brought before the Council.
There being no further comments, the Public Hearing was closed at 6:31 p.m.
The City Council next held a Public Hearing on Thursday May 17, 2018 at 6:00 p.m., or as soon thereafter as the matter may be heard, at the Melrose City Center to consider the adoption of an ordinance annexing the following described territory to the City of Melrose:
That part of the Northeast Quarter of the Southeast Quarter (NE¼ SE¼) of Section 3, Township 125 North, Range 33 West, Stearns County, Minnesota, which lies southerly of the south line of Block Two (2) of Darmac Acres, according to the plat thereof, on file and of record in the office of the Stearns County Recorder, and northwesterly of the northwesterly right of way line of County State Aid Highway 13, according to Stearns County Highway Right of Way Plat Number 35, on file and of record in the office of the Stearns County Recorder.
Physically located due South of Casey’s Gas Station and due West of Kraemer Lumber
Parcel No. 12.06926.0002
City Administrator Brethorst presented the Affidavit of Publication of the Hearing Notice.
Community Development Director Lisa Atkinson provided a brief overview of the request for Orderly Annexation.
Mayor Finken inquired as to whether or not the applicants had any contingencies with moving forward with the annexation.
LuVerne Ritter, speaking on behalf of the applicants, stated that it is their intent to move forward with the annexation without contingencies.
Craig Heinze spoke regarding the lack of available parking and amenities for truck drivers. Mr. Heinze stated that more truck stops are needed.
Joyce Duerr had questions regarding the height and quality of the fence that would be installed. Ms. Duerr also expressed concern of being taxed for the fence and the possibility of decreased property value. She also asked if more than one car wash would be installed as there is often a line of cars waiting.
Attorney Jim Skloda, representing Casey’s, stated that the fence will be eight feet tall and installed on a two-foot high berm. The fence will be of quality material and maintenance of the fence will be the responsibility of the property owner (Casey’s). Mr. Skloda stated that residents will not be taxed for the fence. Mr. Skloda stated that at the present time, the plan only calls for one car wash.
Todd Ostendorf lives adjacent to the proposed annexed land. Mr. Ostendorf stated that the abutting residents are not opposed to the land being developed commercial if it is a suitable investment. A commercial business running 24/7, 365 days is not suitable. He stated that he would not object to a business such as Kraemer Lumber that has daytime business hours. A mini truck stop will not solve the industry’s problem of getting off the road. The neighborhood is there and is a core development of the community. They support commercial expansion; however, it needs to be balanced out with what is really right for the community.
Lois Lashinski stated that when County Attorney Janelle Kendall was at the February Council meeting, she had stated that Sauk Centre’s crime is almost doubled compared to Melrose due to the truck stop. Ms. Lashinski noted that she has contacted a realtor and was told her property value would go down by approximately $20,000. Ms. Lashinski suggested Casey’s look at other locations such as the old New Munich Ballroom. There being no further comment, the Public Hearing was closed at 6:50 p.m.
The Melrose City Council held a Public Hearing on Thursday, May 17, 2018 at 6:00 p.m., or as soon thereafter as the matter may be heard, at the Melrose City Center, for the purpose of giving consideration for a petition requesting a utility easement vacation submitted by Casey’s Retail Company.
• 66.36667.0016 – 817 County Road 13 SW, Casey’s Retail Company
• 66.36667.0014 – 817 County Road 13 SW, Casey’s Retail Company
A copy of the petition is on file with the Planning and Zoning Department, Melrose City Center, 225 1st St NE, Melrose MN 56352 and is available for review during normal business hours. City Administrator Brethorst presented the Affidavit of Publication of the Hearing Notice which was published. Community Development Director Atkinson gave an overview of the utility easement vacation. Ms. Atkinson noted that the easement vacation would not be recorded until the property is platted. There being no comment, the Public Hearing was closed at 6:51 p.m.
The Melrose City Council held a Public Hearing on Thursday, May 17, 2018 at 6:00 p.m., or as soon thereafter as the matter may be heard, at the Melrose City Center, pursuant to Minnesota State Statutes Sections 469.1812 through 469.1815 on the request of James and Elizabeth Illies (the “Owner”) to have the City abate to the owner property taxes to be levied by the City on tax parcel number 66.36956.0000. The proposed tax abatement would grant an abatement of existing and increases in property taxes to assist James and Elizabeth Illies in the recovery of losses and damage suffered by the fire on September 8, 2016.
City Administrator Brethorst presented the Affidavit of Publication of the Hearing Notice which was published. Traci Ryan with Ryan Development Consulting provided an overview on the proposed tax abatement to assist James and Elizabeth Illies. There being no public comment, the Public Hearing was closed at 6:53 p.m.
Mayor Finken stated that there is a proposed amendment to update existing zoning-related regulations found in the C-2, Highway Commercial District, Section 222.04(5), pertaining to Conditional Use Permits/Convenience Grocery Stores. The City has been approached by Casey’s Gas Station to increase their footprint and expand operations; however, due to the current language within the ordinance, this is not allowed. The Planning and Zoning Commission reviewed the Zoning Ordinance 222.04 (5) and found it to be outdated. Staff researched the history of the ordinance and discovered the initial intent after interviewing both Jane Brown and Gary Walz, retired City staff. This ordinance dates back nearly 20 years and the original intent was meant to protect several smaller grocery stores from needing to compete with large convenience stores. As business models have changed, smaller groceries are no longer common.
Current Verbiage: “Convenience grocery stores provided that total floor space is 3,200 (Ord No 1999-F) square feet or less, and provided further that it is operated in conjunction with a motor fuel facility which is a part of said business subject to the following:…”
Proposed Verbiage: “Convenience Grocery Store provided that the total floor space is 3,200 square feet or less, and provided further that if it is operated in conjunction with a motor fuel facility which is a part of said business and is subject to the following:…”
This would eliminate the requirement of 3,200 square feet or less in conjunction to operation with a motor fuel facility as shown by the struck portion in the text above. The underlined word would be added to the text.
At its January 8, 2018 Planning and Zoning Commission meeting, a motion was made by Mr. Mayers seconded by Mr. Thomes and unanimously carried recommending the City Council approve eliminating the 3,200-square foot or less requirement from Zoning Ordinance 222.04(5).
Council Member Christenson introduced Ordinance No. 05-17-2018-1, An Ordinance Amending Ordinance No. 1989-1-A as Amended, Adopted by Reference as Chapter 153 of the Melrose City Code to Commercial Highway Conditional Use Requirements. The motion was seconded by Mr. Frieler with a roll call vote recorded as follows:
FOR: Council Members Christenson, Frieler, Thieschafer, Klasen, and Mayor Finken
AGAINST: None
Administrator Brethorst also recommended the Council approve the Official Title and Summary for this Ordinance to be published in lieu of the entire Ordinance containing the amendments. A vote to support the summary publication of Ordinance No. 05-17-2018-1 does not constitute support for Ordinance No. 05-17-2018-1 and the actions thereto within said Ordinance. Ordinance No. 05-17-2018-1 will be available at the Melrose City Center and at the Great River Regional Library – Melrose Branch. State Statute requires that approval of the Official Title and Summary by the Council must be by a 4/5 vote. A motion was made by Mr. Thieschafer to adopt Official Title and Summary, Ordinance No. 05-17-2018-1. The motion was seconded by Mr. Klasen with a roll call vote recorded as follows:
FOR: Council Members Thieschafer, Klasen, Christenson, Frieler, and Mayor Finken
AGAINST: None
Mayor Finken noted that following its review of the Planning Report and related information and documents associated with the application for issuance of the Annexation, the Council gave consideration to the application for Annexation. The Annexation is received to accommodate a request by LuVerne & Jean Ritter, Kathleen Heinze, and Cyril & Darlene Meyer. Mr. Klasen asked if the annexation would occur without any contingencies. Mr. Ritter reaffirmed that the applicants have not placed any contingencies on the annexation of the property. Council Member Christenson introduced Ordinance No. 05-17-2018-2, An Ordinance Approving the Petition of LuVerne & Jean Ritter, Kathleen Heinze, and Cyril & Darlene Meyer for the Annexation of Unplatted Land Not Exceeding 120 Acres to the City of Melrose, Under Minnesota Statutes Section 414.033 Subd. 2(3). The motion was seconded by Mr. Frieler with a roll call vote recorded as follows:
FOR: Council Members Christenson, Frieler, Thieschafer, Klasen, and Mayor Finken
AGAINST: None
Administrator Brethorst also recommended that the Council approve the Official Title and Summary for this Ordinance to be published in lieu of the entire Ordinance containing the amendments. A vote to support the summary publication of Ordinance No. 05-17-2018-2 does not constitute support for Ordinance No. 05-17-2018-21 and the actions thereto within said Ordinance. Ordinance No. 05-17-2018-2 will be available at the Melrose City Center and at the Great River Regional Library – Melrose Branch. State Statute requires that approval of the Official Title and Summary by the Council must be by a 4/5 vote. A motion was made by Mr. Klasen to adopt Official Title and Summary, Ordinance No. 05-17-2018-2. The motion was seconded by Mr. Thieschafer with a roll call vote recorded as follows:
FOR: Council Members Klasen, Thieschafer, Christenson, Frieler, and Mayor Finken
AGAINST: None
Mayor Finken stated that the land south of the existing Casey’s is being annexed into the City. Upon Annexation, City ordinances state that the land is to be zoned FDD, Future Development District. The applicants have requested that the land be rezoned from FDD, Future Development District to C-2, Commercial Highway. The Planning and Zoning Commission held the Public Hearing for this request on April 2, 2018. One nearby property owner spoke regarding this topic and inquired whether the property could be designated residential instead of commercial. The Planning and Zoning Commission, at its April 2, 2018 meeting, reviewed the Conditional Use Permit request and based on the information presented, it is their recommendation that the Council approve the request. Council Member Frieler introduced Ordinance No. 05-17-2018-3, 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. 12.06926.0002 Owned by LuVerne Ritter, Jean Ritter, Kathleen Heinze, Cyril Meyer And Darlene Meyer From Its Initial Zoning Of FDD, Future Development District To C-2, Commercial Highway. The motion was seconded by Mr. Christenson with a roll call vote recorded as follows:
FOR: Council Members Frieler, Christenson, Klasen, Thieschafer, and Mayor Finken
AGAINST: None
Administrator Brethorst also recommended that the Council approve the Official Title and Summary for this Ordinance. This Official Title and Summary will then be published in lieu of the entire Ordinance containing the amendments. A vote to support the summary publication of Ordinance No. 05-17-2018-3 does not constitute support for Ordinance No. 05-17-2018-3 and the actions thereto within said Ordinance. Ordinance No. 05-17-2018-3 will be available at the Melrose City Center and at the Great River Regional Library – Melrose Branch. State Statute requires that approval of the Official Title and Summary by the Council must be by a 4/5 vote. A motion was made by Mr. Klasen to adopt Official Title and Summary, Ordinance No. 05-17-2018-3. The motion was seconded by Mr. Thieschafer with a roll call vote recorded as follows:
FOR: Council Members Klasen, Christenson, Klasen, Thieschafer, and Mayor Finken
AGAINST: None
Mayor Finken noted that Casey’s currently operates a gas station, convenience store, (“Gas Station/grocery convenience and carwash”) on Lots 3 and 4 of Darmac Acres, zoned C-2, Commercial Highway. As part of their business expansion, they are proposing to also utilize 4.2 acres of land proposed to be annexed into the City, as noted in the Planning Report. A Conditional Use Permit is necessary under the Zoning Ordinance for the Applicant to operate a convenience grocery/gas station and car wash. The current Zoning Ordinance for C-2 allows gas station/convenience grocery store uses by conditional use permit but limits their size to a maximum of 3,200 square feet. An ordinance amendment is being considered which would remove that maximum building size in the C-2 zoning district. The Conditional Use Permit will not take effect until the entire property is annexed into the City and zoned C-2, Highway Commercial, as noted in the resolution. The Planning and Zoning Commission, at its March 1, 2018 meeting, held a Public Hearing on the Conditional Use Permit application and recommended approval as per the Planning Report. Community Development Director Atkinson summarized the Planning and Zoning’s Finding of Facts and noted that the Planning and Zoning Commission reviewed the Seven Standards for Granting a Conditional Use Permit. Of the seven, the first two standards were of concern to the Commission pertaining to potentially endangering the public health, safety, morals, comfort or general welfare and potentially diminishing and impairing property values within the neighborhood. The Planning and Zoning Commission did recommend approving the Conditional Use Permit subject to 21 conditions as noted in the Planning Report. Staff has added several additional conditions to try and minimize the concerns of the abutting property owners. Staff presented the revised 25 conditions to Casey’s. Casey’s has responded that they would be willing to limit the truck parking spaces to 12; however, they prefer not to have further limitation of the configuration of the parking as defined in item 24 as proposed. Casey’s Attorney, Jim Skloda, noted that in response to the residents’ concerns Casey’s did redesign the site moving the trucks further away from the residents and moving the retention pond to the other side of the property. Casey’s also conducted an independent noise and traffic study that based this study and the expertise of the authors, the noise would not be an issue based on the current regulations and, therefore, would follow the limit of 12 truck stalls. Casey’s also placed a 60 minute limitation on the duration that trucks can idle in the evening hours between 10:00 p.m. to 7:00 a.m. Council Member Klasen expressed his concern with overnight truck parking next to a residential area. Mr. Frieler asked how Casey’s intends to handle the 60-minute limitation of truck idling in the evening hours. Mr. Skloda stated that, at a minimum, Casey’s would install signage and have staff monitor. Casey’s discussed having plug-in generators and/or power poles. Mr. Christenson contacted six local business. He noted that although they are larger businesses and not all truckers were overnight haulers; however, in total, there are approximately 180 truck drivers coming into town daily to service these businesses. These truckers will also visit other local businesses. Mr. Christenson noted that Casey’s is trying to work with the residents. Mr. Christenson stated that he understands the residents’ concerns; however, he also needs to look at the benefits a business brings for the entire City. Council Member Thieschafer introduced Resolution No. 2018-20, Approving Case No. 2018-401 Conditional Use Permit (CUP) Requested by Casey’s Retail Company to Operate Grocery Convenience Gas Station and Car Wash as Allowed by CUP with the following revisions to item 22 of the CUP that signage be placed addressing idling of trucks not be permitted for greater than 60 minutes, using Option 1 of item 24 and allowing eight parking spaces. Mr. Skloda stated that the studies available state that 12 parking spaces will not cause a noise issue. Casey’s already has a substantial investment in the project. Casey’s would not be interested in redesigning the parking lot or reducing the parking to less than 12 spaces. The motion was seconded by Mr. Klasen with a roll call vote recorded as follows:
FOR: Council Members Thieschafer and Klasen
AGAINST: Council Members Frieler, Christenson and Mayor Finken
The motion failed.
A motion was then made by Council Member Christenson to adopt Resolution No. 2018-20, Approving Case No. 2018-401 Conditional Use Permit (CUP) Requested by Casey’s Retail Company to Operate Grocery Convenience Gas Station and Car Wash as Allowed by CUP with the following revisions to item 22 of the CUP that signage be placed addressing idling of trucks not be permitted for greater than 60 minutes, and removing condition number 24 and limiting parking to 12 truck stalls. The motion was seconded by Mr. Frieler with a roll call vote recorded as follows: Council Member Thieschafer asked what the process is to address that the conditions are being met. Is it complaint-driven or self-policing? Attorney John Shockley stated that he recommends and has addressed with staff that the Conditional Use Permit be drafted and recorded against the property that it includes the procedure that if a complaint is filed against the property owner, that the property owner is notified and then given a specific amount of time to correct the issue. If they did not comply, they must come before the City Council. The Council would then have the authority to remove the Conditional Use Permit if appropriate notice was given and compliance was not resolved. The motion was amended to direct Attorney John Shockley and staff to include as part of the Conditional Use Permit the process for complaints filed against the property. A roll call vote was recorded as follows:
FOR: Council Members Christenson, Frieler, and Mayor Finken
AGAINST Council Members Klasen and Thieschafer
Mayor Finken stated that Casey’s Retail Company, the owner of real property in the City of Melrose, Stearns County, Minnesota, legally described as Lots 3 and 4, Block 2, Darmac Acres, parcel numbers 66.3667.0014 and 66.3667.0016 located at 817 County Road 13 SW, Melrose, MN 56352, submitted a petition requesting that, pursuant to Minnesota Statute §412.851, the City Council vacate the dedicated 7.5 foot utility easements within said Lots 3 and 4, Block 2, Darmac Acres. The application was received by the City Clerk on January 22, 2018 and published. This is a standard easement around the perimeter of the property. When the property gets platted and combined with the parcel that is proposed to be annexed and rezoned, additional right-of-way will be dedicated around the perimeter of the new plat. The vacation does not take effect until a new plat dedicates the new easements. A motion was made by Mr. Frieler, seconded by Mr. Christenson and unanimously carried to adopt Resolution No. 2018-21, A Resolution Vacating A General Utility Easement Upon a Petition of the Landowners.
Mayor Finken noted that Leedstone TIF District No. 9-2 does not anticipate pursuing the development project as proposed, and the TIF assistance is no longer required. The City needs to act decertifying TIF District No. 9-2. The District will have a $0 fund on the decertification date and no increment has been received from the County, nor needs to be returned for redistribution. A motion was made by Mr. Thieschafer, seconded by Mr. Klasen and unanimously carried adopting Resolution No. 2018-22, Decertifying Tax Increment Financing District No. 9-2 – Leedstone.
Mayor Finken stated that Central Minnesota Federal Credit Union (CMCU) TIF District No. 6-1 will have met its obligation of reimbursing the maximum amount due to the CMCU. There being no further increment distribution remaining, the City needs to act decertifying TIF District No. 6-1. The District will have a $19,347.36 fund on the decertification date and the surplus increments will be returned to the County for redistribution. A motion was made by Mr. Klasen, seconded by Mr. Frieler and unanimously carried to adopt Resolution No. 2018-23, Decertifying Tax Increment Financing District No. 6-1 – Central Minnesota Credit Union.
Mayor Finken stated that the City held a Public Hearing at its April 19, 2018 meeting. As a result of the comments and public input City Attorney Dymoke has drafted two possible amendments to Chapter 76 relating to ATV and Golf Carts. The documents that say “golf carts only” keep our current permitting structure in place but apply the requirements only to golf carts. If this version is adopted, Melrose will not regulate ATVs – Class 1 or Class 2 – by City Ordinance, only the statutes and regulations adopted by the State of Minnesota will apply to ATVs. The documents that say “golf carts & ATV” keep our current permitting structure in place, but define an ATV using the State of MN’s definition of a Class 1 ATV. If this version is adopted, Melrose will regulate golf carts and Class 1 ATVs by City Ordinance. Class 2 ATVs will not be regulated by City Ordinance, only the statutes and regulations adopted by the State of Minnesota will apply to Class 2 ATVs. The Council should be advised that state law regulating the use of ATVs on public roadways is not a model of clarity.
• MN ST 84.928, Subd 1(d) provides that the Council, after public hearing, may restrict the use of ATVs on city streets.
• MN ST 84.928, Subd 1(k) provides that the Council may, by ordinance, allow the use of ATVs on city streets for the purpose of access to businesses, residences, and trail connections.
• MN ST 84.928, Subd 6 provides that the Council may prohibit the use of ATVs on city streets.
• MN ST 169.045 provides that the Council may authorize the use of ATVs on designated city streets, but that authorization is by permit only.
State Statutes does not clearly permit or clearly prohibit the use of ATVs on city streets. The League’s position is that use of ATVs on city streets is by permit only in accordance with MN ST 169.045.Council Member Frieler introduced version 2 of Ordinance No. 05-17-2018-4 (golf carts only). The motion was seconded by Mr. Thieschafer with a roll call vote recorded as follows:
FOR: Council Members Frieler, Thieschafer, Klasen, Christenson, and Mayor
Finken
AGAINST: None
A motion was then made by Mr. Thieschafer, seconded by Frieler and unanimously carried to refund any resident who has applied for Class 1 or Class 2 ATV permit.
City Administrator Brethorst stated that given version 2 Ordinance No. 05-17-2018-4, the Council to consider acting approving the Official Title and Summary for this Ordinance to be published in lieu of the entire Ordinance containing the amendments. Ordinance No. 05-17-2018-2 will be available at the Melrose City Center and at the Great River Regional Library – Melrose Branch. State Statute requires that approval of the Official Title and Summary by the Council must be by a 4/5 vote. A motion was made by Mr. Thieschafer to adopt Official Title and Summary, Ordinance No. 05-17-2018-1. The motion was seconded by Mr. Christenson with a roll call vote recorded as follows:
FOR: Council Members Thieschafer, Christenson, Klasen, Frieler, and Mayor
Finken
AGAINST: None
Mike Nielson provided an update on the 1st Street NE project. Construction will begin on Monday, May 21. It is anticipated to take 30 working days or 45-55 calendar days.
Mike Nielson provided an update on the 5th Avenue Bridge NE/channel relocation/rock arch rapids. Mr. Nielson presented a timeline of deadlines that must be met to construct the bridge and channel improvements in 2019. WSB staff completed the hydraulic modeling for a two-span bridge and grading plan for the rock arch rapids. Preliminary results were reviewed with several members of the DNR staff on May 1, 2018. Several issues were discussed including the height of the steps in the rock arch rapids. The DNR has requested to lower the steps from 0.8’ to 0.6’ which will result in the rock arches extending into the lake further. WSB has revised the grading plan. The two-span bridge option has shown higher than desired scour at the center pier. WSB has checked with MnDOT bridge office and they have indicated they will provide funding for a three-span bridge if the scour warrants. A two-span and three-span bridge was discussed with the DNR and they indicated that the Army Corp is trying to eliminate center piers where possible. The conclusion was that a three-span is a better alternative for several reasons including scour, reduced risk of blockage from debris and improved safety in navigation by kayakers. In addition to the LCCMR Grant submitted by the City, the Stearns SWCD has submitted a preliminary application for the Sams Lessard Grant funding in the amount of $3 million and the project was ranked 3rd in the state with the two ahead of it being much smaller. The final grant application is due at the end of May. The DNR is optimistic that the project could receive funding for this grant cycle which has money available on September 1, 2019. The downside to this is that any funds expended before the grant is awarded are not eligible to be used as a match. It is recommended that the final design of the bridge and rock arch rapids wait until we can confirm that any funds expended on final design can qualify for matching funds.WSB recommends that the Council approve moving forward with the revisions to the rock arch rapids lowering the step from 0.8’ to 0.6’. This change will lower the velocities in the channel and reduce the long-term risk and maintenance costs for the City. We also are recommending three-span bridge to reduce to eliminate a center of channel pier which would be susceptible to scour. Due to the highest velocities in a channel at the middle of the channel, a center pier with a two-span bridge is more susceptible to scour and can be a debris catcher which can lead to flooding. In addition, a center of channel pier is hazardous to stream navigation. Council Member Klasen left the meeting at 8:20 p.m.
Mayor Finken stated that the City of Melrose, Minnesota (the “City”) created Tax Increment Financing (TIF) District No. 12-1 on November 16, 2017 to undertake a redevelopment project in the City (the “Redevelopment Project”). A Tax Abatement Hearing was held on May 17, 2018 to consider the provision of Tax Abatement Assistance to James and Elizabeth Illies on parcel number 66.36956.0000 (the “Development Property”) to help recover from the effects of the 400 Block fire on September 8, 2016.The development property is currently located within TIF District No. 12-1 and Minnesota Statues does not allow the City to enter into an agreement to provide Tax Abatement assistance on a parcel that is located within an existing TIF. The City hereby request that Stearns County remove parcel number 66.36956.0000 from TIF District No. 12-1. A motion was made by Mr. Thieschafer, seconded by Mr. Frieler and unanimously carried adopting Resolution No. 2018-24 which will allow for the Decertification of 66.369563.0000 and allow for the Municipal Abatement of Property Taxes.
Mayor Finken stated that the City proposes to assist James and Elizabeth Illies with the repair and improvement of the property they own located at 411 Main Street East, Melrose Minnesota. The City proposes to use the abatement for the purposes provided for in the Abatement Law including the project, and more specifically described in the Abatement Agreement. The proposed term of the abatement will be for up 10 years in an amount not to exceed $15,000. The abatement will apply to the City’s share of the property taxes (the “Abatement”). A motion was made by Mr. Thieschafer, seconded by Mr. Frieler and unanimously carried approving Resolution No. 2018-25, Approving Tax Abatements.
Mayor Finken noted that in order to enter into an Abatement, an agreement must be signed by both the property owner and the City. With the passage of the Abatement for the Illies property, an agreement must be signed. A motion was made by Mr. Thieschafer, seconded by Mr. Frieler and unanimously carried approving the Abatement Agreement as presented.
The following informational items were reviewed:
a. Utilities Commission’s April 9 Regular Meeting minutes and the May 8 Special Meeting minutes.
b. Charter Communication correspondence.
c. The Minnesota Department of Revenue Correspondence on the Volunteer Tax Preparation Program.
d. Permit Log – First Quarter 2017 permit log.
e. The City Council and Melrose Area Development Authority (MADA) met and reviewed the $100,000 Revolving Loan application at the April 19, 2018 Special Joint Meeting. In late March, the City received a request for a Revolving Loan Fund from TGC Enterprises, LLC DBA Melrose Metalworks for the purchase of the assets from the Trust that business was in after the death of the Scott Kramer, the previous owner. This request is due to a gap in financing to support the project. The loan request amount is $100,000 and is proposed to be in the form of a loan participation with Vikings Savings in Alexandria. The City’s loan policy requires 10% equity. The equity for this loan would come in the form of equipment.
The Council and MADA voted to approve the loan contingent on final review by Mike Brethorst, Tessa Beuning, Lisa Atkinson, Traci Ryan and Jerome Duevel. This review occurred, and it was approved unanimously.
f. City Administrator Brethorst attended the 2018 Minnesota City County Manager Association ½ day conference on May 2 and full day on May 3 Annual Education Conference. The conference focused on renewed and redefined community leaders. Formal presentations were made by Dr. Teresa; Myths (and Realities) of Leadership and ½ day session by Dr. Alan Zimmerman on the 4 C Leadership: Communication, Cooperation, Change and Commitment. Dr. Alan Zimmerman shared with the audience a list of Communication Killer Statements. He recommends that all Council Members and staff review these to help people with their unconscious biases and reluctance to change when it is proposed. He suggests to always hold your mind open to the possibility but not close it down on the first chance. In addition to these two sessions, there was a break out session called Dealing with Challenges and Successes as well a Round Table discussion on Ethics.
A motion was made by Mr. Frieler, seconded by Mr. Christenson and unanimously carried that the meeting be adjourned at 8:25 p.m.
PATRICIA HAASE – CITY CLERK