Melrose City – May 22, 2012

Melrose City
May 22, 2012
The Melrose City Council met in a Regular Meeting on Tuesday, May 22, 2012 at 6:00 p.m. at the Melrose City Center pursuant to due notice being given thereof. Present were Council Members Jenny Mayers, Tony Klasen, Dick Christenson, Mayor Tim Vogel, City Administrator/Treasurer Michael Brethorst, and City Clerk Patti Haase. Council Member Joe Finken was absent. Mayor Vogel presided thereat. The Council then recited the Pledge of Allegiance.
A motion was made by Mr. Christenson, seconded by Ms. Mayers and unanimously carried to approve the agenda as submitted.
Mayor Vogel then opened the floor to public comment. Allen Dufner requested the Council give consideration allowing golf carts on streets within City limits.
The following items were considered for approval under the Consent Agenda:
a. the minutes from the Council’s April 9 Special Joint Meeting with the Public Utilities Commission, Council’s April 9 Special Meeting, Council’s April 19 Special Joint Meeting with the Public Utilities Commission, Council’s April 19 Regular Meeting, and the May 1 Local Board of Appeal and Equalization Meeting.
b. list of bills in the amount of $289,805.18.
c. list of investments for the month of April.
d. Donation Resolutions: 1) Resolution No. 2012-20, Donation in the amount of $100 from the Melrose American Legion Post 101 for Night to Unite.
2) Resolution No. 2012-21, Donation of a tree from Juel Meyer to be planted in the Sauk River Park in memory of her late mother, Mary Ann Molitor.
3) Resolution No. 2012-22, Donation in the amount of $50 from the Melrose Lions for Night to Unite.
4) Resolution No. 2012-23, Donation in the amount of $1,100 from the Melrose Lions towards the Riverfest celebration.
5) Resolution No. 2012 -24, Donation of materials and labor from the Melrose Lions to provide improvements and renovations to the shelter at the Melrose Lions and Jaycee Community Park at an approximate cost of $5,000.
e. Gambling Resolutions: 1) Resolution No. 2012-25, Resolution Approving Gambling License to St. Mary’s Church for an exemption from lawful gambling license to conduct a bingo on October 28, 2012 at 211 5th Avenue SE, Melrose Minnesota.
2) Resolution No. 2012-26, Resolution Approving Gambling License to the Sauk River Chapter of Minnesota Deer Hunters for an exemption from lawful gambling license to conduct a raffle on September 29, 2012 at the Melrose American Legion, 265 Co R 173 SE, in Melrose Minnesota.
f. A notice was sent by Street/Parks Supervisor Maus to the property owner at 210 1st Street SW requesting that the grass be cut. As per City Code 95.38, all property owners shall be responsible for the removal, cutting, or disposal and elimination of weeds, grasses, and rank vegetation or other uncontrolled plant growth on their property that, at the time of notice, is in excess of eight inches in height.
It is recommended that the Council approve the destruction orders as it then becomes effective for the entire growing season, meaning that if at any time after the issuance of the notice a violation reoccurs, the City shall abate the weeds without further notification to the property owner. It should be noted that any unpaid grass cutting bills can, and will, be certified against the property prior to year-end.
Mr. Maus has also requested that Planning and Development Director Gary Walz again contact Seth Peterson by letter, as he did last year, regarding the long grass on the Peterson-owned lot at 306 2nd St SE, which is now vacant following the City’s removal in 2011 of the fire-damaged residence. Director Walz called Mr. Peterson on May 16; he is agreeable to the City cutting the grass and placing the cost on the property taxes for the lot. Mr. Peterson does not have the means to cut and maintain the lawn. The written authorization is expected to be forthcoming. The Council to take the same action for the Peterson property at 306 2nd St SE as is recommended for 210 1st Street SW.
g. On July 1, Accountant Christy Berscheit will complete her six-month probationary period. As was agreed to at the time of hire to the Accountant position, a six-month performance evaluation was completed and is favorable; therefore, it is recommended that Ms. Berscheit be granted a step increase from Step 3 to Step 4 on the wage scale which is from $19.97 to $20.92.
h. The following Ambulance Department uncollectible accounts have been submitted to Revenue Recapture or written off: Pearl Gamradt (RR), $ 60.96; David Northwest (RR, $182.82; Robert Gysberg (W/O, $1,980.00; Layne Johnson (RR), $1,032.00; Samsam Jama (CA, $60.00; Russell Larson (W/O), $740.40.Total $4,056.18.
i. The following is a list of Fire Department accounts that have been submitted to Revenue Recapture or collections and are recommended to be charged off: Scott Foote (RR), $30.00; Zachary Gallagher (RR), $125.00; Adam Klinkhammer (RR), $125.00. Total $280.00.
j. Police Officer Shawn Swanson has requested a Military Leave of Absence (MLOA) from the Melrose Police Department and the Melrose Fire Department effective June 4, 2012 until early December 2012. Additional information is being provided under separate cover. The Council to take action approving Mr. Swanson’s MLOA.
k. Kay Klein has requested a medical leave of absence from the Ambulance Department effective April 20, 2012 for approximately six weeks. Ms. Klein will be required to provide medical certification upon her returning from leave. With the recent hiring of Andrew Wirtz to the Department, Ambulance Coordinator Jenn Tschida feels staffing levels are adequate to accommodate this leave.
A motion was made by Ms. Mayers, seconded by Mr. Christenson and unanimously carried to approve the Consent Agenda items.
The Council held a public hearing for the purpose of gathering input and taking testimony relating to (a) the proposed modification of Municipal Development District No. 7, (b) the proposed adoption of the modified Development Program relating thereto, (c) the proposed creation of Tax Increment Financing District No. 7-2, and (d) the proposed adoption of the Tax Increment Financing Plan relating thereto, all pursuant to and in accordance with Minnesota Statutes, Sections 469.124 to 469.134 and 469.174 to 469.1799, inclusive, as amended.
City Administrator Brethorst presented the Affidavit of Publication of the hearing notice which was published. Development Consultant Traci Ryan of David Drown Associates presented the Development Program for Municipal Development District No. 7 and the Tax Increment Financing Plan for Tax Increment Financing District No. 7-2 (Carstens Industries Expansion Project). Ms. Ryan noted that whereby in establishing the TIF District, the City makes the following findings: 1. The TIF District qualifies as an economic development district.
2. The proposed development, in the opinion of the City, would not reasonably be expected to occur solely through private investment with the reasonably foreseeable future, and the increased market value of the site that could reasonably be expected to occur without the use of tax increment would be less than the increase in market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the TIF District permitted by the TIF Plan.
3. The TIF Plan conforms to the general plan for development or redevelopment of the City as a whole.
4. The TIF Plan will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development of the Project Area by private enterprise.
In preparation of the Project’s Development Agreement to be completed after the approval of the Tax Increment Financing Plan for the Carstens Industries Expansion Project, Ms. Ryan presented the draft Letter of Terms.
There were no comments from those in attendance; therefore, the Public Hearing was closed at 6:20 p.m.
Mike Nielson from WSB provided an update on the Splash Pad/Skate Park. Mr. Nielson provided the final layout and concept of the Splash Pad/Skate Park. As presented the final projected cost is in the range of $516,812.50 to $622,050. Mr. Nielson noted that due to the iron content in the water, it is recommended that the splash park have a colored concrete to mask the iron staining. Mr. Nielson noted that there were several Council actions that are necessary to move to the fund raising phase of the project: 1. Accept the Master Park layout as presented with the proposed improvements;
2. Require bituminous surfacing in all improved areas including roadway and parking areas;
3. Authorize the formation of a fundraising task force; and
4. Motion to authorize the fundraising task force to solicit funds on behalf of the City of Melrose.
A motion was made by Ms. Mayers, seconded by Mr. Christenson and unanimously carried to accept the Master Park layout as presented with the proposed improvements.
A motion was made by Ms. Mayers, seconded by Mr. Christenson and unanimously carried authorizing the formation of a fundraising task force.
A motion was then made by Ms. Mayers, seconded by Mr. Vogel and unanimously carried authorizing the fundraising task force to solicit funds on behalf of the City of Melrose.
The requirement for bituminous surfacing in all improved areas including roadway and parking areas failed due to lack of a motion.
City Attorney Bob Pottratz addressed the question of unlicensed drivers and the towing of their vehicles. Mr. Pottratz reported on the due process for unlicensed and/or uninsured motorist. The law makes it difficult to tow vehicles of unlicensed drivers; however, the City does issue administrative fines. Mr. Pottratz was asked to comment on issues that may arise if the City allows golf carts on streets. He commented that he does not foresee any issue with allowing golf carts on streets within the City; however, believes that it will be important to educate individuals as to where they can and cannot drive.
Police Chief John Jensen presented the Police Department’s April report. Chief Jensen noted that 15 citations were written for the month of April 2012. He stated there were 200 calls for service during this month compared to 281 for April of 2011. The year-to-date number of calls is 845, compared to 1031 in 2011. Chief Jensen commented on the use of golf carts and all-terrain vehicles on city streets. According to Police Chief Jensen, Minnesota State Statute 169.045, the governing body of any county, home rule charter, or statutory city or town may, by ordinance, authorize the operation of motorized gold carts, all-terrain vehicles, utility task vehicles, or mini trucks, on designated roadways or portions thereof under its jurisdiction. After further discussion, it was the consensus of the Council that a draft ordinance be prepared and presented to the Council at its June 28 meeting. Staff will also need to determine the form of application along with permit fee.
City Attorney Scott Dymoke reported on the projects he has been working on for the City: Gas Franchise Fee: Worked with City staff to review requirements under state law and existing franchise ordinance to adopt and implement a gas franchise fee.
• Warrior Boats: Worked with City staff to prepare and execute the loan participation agreement with the Freeport State Bank.
• Rose Park: Worked with City staff to review and respond to a Data Practices request from Stearns County Attorney for correspondence regarding Rose Park.
City Administrator/Treasurer Brethorst presented the General Fund Financial First Quarter Report. Administrator Brethorst noted that the City revenues are within the budget perimeters and expenditures are under budget.
Public Works Director Harren noted that the Street Department has completed the installation of the new street signs. There has been some interest expressed by individuals for the purchasing of certain signs. The new sign cost averaged approximately $13.00 each. Staff has set $5.00 per sign as the purchase price of the sign for anyone interested in purchasing them. All remaining signs will go for scrap price, which is around $.60 per pound.
Planning and Zoning Commission Member Klasen reported that, at its May 10 meeting, the Commission adopted Resolution No. P&Z 2012-2, Resolution Recommending Approval of the Modification of Municipal Development District No. 7, the Approval of the Development Program Relating Thereto, the Establishment of Tax Increment Financing District No. 7-2 and Adoption of the Tax Increment Financing Plan Relating Thereto. Other items on its agenda for discussion and/or action included:
• Melrose Public Schools District #740’s request to install a reader board sign on the school’s campus along 5th Avenue NE/CSAH 13 was approved.
• The need for mandating saferoom requirements for patio homes and other residential structures without basements to provide storm safety was reviewed and determined to be unnecessary. Saferooms are not required by the Minnesota-adopted Building Code or in the several communities including St. Cloud and the two counties researched by Building Official Dan Marthaler and City staff. Individuals constructing patio and similar types of housing without basements can install saferooms if they desire. According to Building Official Dan Marthaler, the Minnesota Building Code requires that new homes be built to withstand a 90 mph wind speed and that, in certain instances, hurricane clips be installed particularly with wide overhangs. Some residential contractors are electing to use hurricane clips on all the homes which they construct.
• Planning Consultant Tina Goodroad/Stantec presented preliminary drafts of revisions to parts of the City’s Zoning Ordinance including customary home occupations, accessory structures, maximum lot coverage, residential, commercial and industrial use districts, and landscaping, fencing and screening.
The Council gave consideration approving the draft Letter of Terms for the Carstens Industries Expansion Project as presented by Ms. Ryan. This document will serve as the basis for preparation of the Development Agreement to be entered into between the City and Carstens Industries in the near future contingent upon approval by bond counsel.
A motion was made by Ms. Mayers, seconded by Mr. Christenson and unanimously carried approving the draft Letter of Terms to serve as the basis for preparation of the Development Agreement contingent upon approval by bond counsel.
The Council next gave consideration to Resolution No. 2012-27, Resolution Approving the Modification of Municipal Development District No. 7, the Adoption of the Modified Development Program Relating Thereto, the Creation of Tax Increment Financing District No. 7-2, and Adoption of the Tax Increment Financing Plan Relating Thereto.
At its meeting on May 10, the Planning and Zoning Commission, as required by Minnesota Statutes, took action approving Resolution No. P&Z 2012-2, Resolution Recommending Approval of the Modification of Municipal Development District No. 7, the Adoption of the Development Program Relating Thereto, the Establishment of Tax Increment Financing District No. 7-2 and Adoption of the Tax Increment Financing Plan Relating Thereto, whereby it determined that the development program and the finance plan for the proposed Carstens Industries Expansion Project will serve to complement the City’s plans for the creation of development opportunities in the City and to promote the City’s development objectives.
Mr. Klasen introduced Resolution No. 2012-27, Resolution Approving the Modification of Municipal Development District No. 7, the Adoption of the Modified Development Program Relating Thereto, the Creation of Tax Increment Financing District No. 7-2, and Adoption of the Tax Increment Financing Plan Relating Thereto. The motion was seconded by Mr. Christenson with a roll call vote recorded as follows: For: Council Members Klasen, Christenson, Mayers and Mayor Vogel; Absent: Council Member Finken. A copy of the resolution is on file in the City Administration Office.
Mayor Vogel noted that the Council, at its April 19 meeting, authorized Stantec to complete a topographical survey of County Road 186 – northerly ditch from the intersection with Industry Parkway NW to a point approximately 1500 linear easterly (wetland). Stan Hanson with Stantec presented the Council with the investigative report which includes a topographical map of the existing County Road 186 ditch and proposed improvements to the ditch along with a cost estimate for the improvements. The north side of the culvert has about 12 inches of sediment buildup from melting snow and water runoff. It is proposed to remove the sediment and widen the bottom of the ditch. If this reconstruct were to take place, an existing four-inch gas pipeline (owned by CenterPoint Energy) would need to be relocated. Public Works Director Harren noted that the City does remove sediment from the ditch on a regular basis. After further discussion, it was the consensus of the Council that the City should remove the sediment and continue to monitor the situation.
A motion was made by Mr. Klasen, seconded by Mr. Christenson and unanimously carried for staff to notify Mr. Roelike that the City will remove the sediment and monitor the situation; however, the City would not move forward with the ditch reconstruction at this time.
At its April 19 meeting, the Council directed staff to prepare a Request For Quote (RFQ) for an engineering firm. Staff is requesting a committee be formed consisting of two Council Members in addition to staff members. The committee would need to determine what qualifications the Council is requiring of its engineering firm. RFQs will be sought after the qualifications are identified.
A motion was made by Mr. Vogel, seconded by Mr. Klasen and unanimously carried appointing Mr. Finken to the committee. Mr. Christenson volunteered to serve as a member of the committee whereby by consensus the Council concurred with Mr. Christenson to serve on the committee with Mr. Finken.
The compressor on one of the two units for the City Center went out. Two quotes were received per policy. The low quote was received from Climate Air in the amount of $10,040. A motion was made by Mr. Klasen, seconded by Ms. Mayers and unanimously carried approving the staff’s recommendation to proceed with the repairs.
Mayor Vogel noted that certain water service stub-ins and certain sanitary sewer services and sewer service stub-ins, which were constructed as part of the 1998 Capital Improvements Project #27, were not included in the special assessment proceedings for that Improvement Project. The properties served by these certain water service stub-ins and certain sanitary sewer services and sewer service stub-ins are identified in Ordinance No. 1998-G, An Ordinance Describing Charges for Connection and Availability of Water Service Stub-ins and Sanitary Sewer Services and Sewer Service Stub-ins. According to Ordinance No. 1998-G, at such time as a premises described in the Ordinance connected to the City water system and/or to the City sanitary sewer system, the owners of such properties requesting connection to those City utilities systems would be required to pay to the City a charge for connection to said systems as reimbursement to the City for a portion of the construction charges and the cost of making the services available to the premises. The Charges by Ordinance allocated to Lot 2, Block 1, Melrose Industrial Park (66.37010.0300) owned by Carstens, Inc. consisted of: 6 – sanitary sewer units @ $2,500, total: $15,000.00’ 1 – 6” sewer service stub-in: $493.23; 1 – 1” water service stub-in: $514.54. Total $16,007.77.
To date, a total of $11,007.77 has been repaid with a remaining balance of $5,000 due for two unpaid and unused sanitary sewer units at $2,500 each. Since Carstens Industries is undertaking a large expansion of its existing facilities and will use the existing services already serving his facilities and will not be utilizing these sanitary sewer units and has no future developmental need for them, Jim Carstens, President of Carstens Industries, Inc., is requesting the removal of the remaining sanitary sewer unit Charges by Ordinance totaling $5,000. Staff concurs with the request of Mr. Carstens/Carstens Industries, Inc. The Council to consider taking action on the request for removal of these specific Charges by Ordinance as they pertain to Lot 2, Block 1, Melrose Industrial Park. A motion was made by Mr. Christenson seconded by Ms. Mayers and unanimously carried approving the removal of the remaining balance of $5,000 for two unpaid and unused sanitary sewer units allocated to Lot 2, Block 1, Melrose Industrial Park (66.37010.0300) owned by Carstens, Inc.
Mayor Vogel noted that in 2005, the City provided development assistance in the form of JOBZ participation and Revolving Loan Fund financing in the amount of $150,000 to Commercial Contractors Company of Melrose, Inc. (CCC) for the construction of an office, shop and warehouse facility containing approximately 4400 square feet and a separate manufacturing and production facility containing approximately 4000 square feet. CCC continues to meet the job retention and creation goals identified in the Business Subsidy Agreement along with the other requirements stated in the Agreement. Based on its ongoing performance, it will be allowed to continue participating in the JOBZ program through December 31, 2015 when the program is scheduled to terminate. Likewise, CCC is current on its repayment of the RLF financing which has a remaining balance of $89,961.02 as of May 1, 2012. The City’s 2005 RLF financing is secured by a second mortgage lien and a security agreement on CCC’s real and personal property located at 631 Central Ave S, Melrose, Minnesota. The legal description of the property securing the second mortgage is Lot 7, Block 1, and Lots 1, 2, 4 and 5, Block 2 of Hagberg Addition, according to the recorded plat thereof on file and of record in the Office of the County Recorder, Stearns County, Minnesota. The City’s original 15-year mortgage in the amount of $150,000 is subordinate to the first mortgage of the Central Minnesota Credit Union in the amount of $316,087 which has a present balance of approximately $253,600. An appraisal of the property dated March 22, 2005 assigned a value of $605,000 to the CCC industrial properties.
The Central Minnesota Credit Union proposes to provide up to an additional $275,000 in financing for a proposed 4600 square foot expansion to CCC’s production and manufacturing facility for which the City recently granted a variance from the rear yard setback requirement. However, in order to do so it is necessary that the City’s RLF balance of $89,961.02 be subordinated to the proposed new financing of the Central Minnesota Credit Union. This would result in a total mortgage debt between the Central Minnesota Credit Union and the City of approximately $618,561.02. An appraisal of the property securing the existing and proposed debt was completed this week. A preliminary review by the Central Minnesota Credit Union indicates an appraised value of $650,000 upon completion of the proposed addition. CCC hopes to begin construction in late May or early June.
At its May 21 Meeting, MADA took action making recommendation to the Council that it approve the request of the Central Minnesota Credit Union and Commercial Contractors Company of Melrose, Inc. to subordinate the City’s existing RLF debt and mortgage to the proposed new debt and mortgage of the Credit Union in an amount not to exceed $275,000. A motion was made by Ms. Mayers, seconded by Mr. Klasen and unanimously carried concurring with MADA regarding the subordination request and authorizing the execution of the required documentation.
The following informational items were discussed:
a. The following is a list of upcoming schools and conferences: 1) In Service Training Use of Force Taser Recertification and Defensive Tactics Recertification: April 12 in Sauk Centre. Registration: N/A. Attending: Police Officer Chris Swanson; 2) DMT Training: April 24 in Willmar. Registration: N/A. Attending: Police Sergeant Maus.
b. Utilities Commission’s April 5 Bid Opening Meeting minutes, the April 9 Regular Meeting minutes, and the April 23 Special Meeting minutes.
c. Brandon Sawyer was hired to fill the Temporary/Seasonal Maintenance Worker position at 20 hours per week not to exceed 90 days for the months of May, June and July.
d. The Melrose Fire Department has advertised for sale the 1977 Luverne Pumper. Bids are being accepted until 4:30 p.m. on Monday, May 21, 2012. No bids have been received at the time of agenda publication. Fire Chief Kramer is recommending that if no bids are received, the truck be sold for scrap metal.
e. Correspondence sent by City Administrator Brethorst to Benson Air Ag, Inc. regarding spraying of tent caterpillars.
A motion was made by Mr. Christenson, seconded by Ms. Mayers and unanimously carried that the meeting be adjourned at 8:00 p.m.
Patricia Haase, City Clerk