Melrose City, September 13, 2012

The Melrose City Council met in a Regular Meeting on Thursday, September 13, 2012 at 6:00 p.m. at the Melrose City Center pursuant to due notice being given thereof. Present were Council Members Joe Finken, Tony Klasen, Dick Christenson, Mayor Tim Vogel, City Administrator/Treasurer Michael Brethorst, and City Clerk Patti Haase. Council Member Jenny Mayers was absent. Mayor Vogel presided thereat. Also in attendance were several American Government students from the Melrose Area Public High School. The Council then recited the Pledge of Allegiance.
A motion was made by Mr. Finken, seconded by Mr. Klasen and unanimously carried to approve the agenda as amended.
Amanda Maus spoke supporting the replacement of Police Officer Swanson siting reasons of Police Officer safety and community protection.
The following items were considered for approval under the Consent Agenda:
a. the minutes from the Council’s August 22 Special Meeting, the August 23 Special Joint Meeting with the Melrose Public Utilities Commission, and the August 23 Regular Meeting.
b. list of bills in the amount of $136,582.51. The list of bills includes the membership dues for the League of Minnesota (LMC) in the amount of $3,421 plus an additional $30 for Minnesota Mayors Membership Association dues. The LMC provides consulting, professionals training and insurance service to the City of Melrose and the Melrose Public Utilities Commission. The cost share is 75% General Fund / 25% Utilities Fund.
c. list of investments for the month of August.
d. Donation Resolutions: 1) Resolution No. 2012-41, Donation in the amount of $2,816 toward the Sauk River Park Improvement Project, Olympic Flags; 2) Resolution No. 2012-42, Donation from Pat & Juliann Heller, Tony & Julie Klasen, Clyde & Virginia Tise, and the Senior Activity Center towards the Tri-Cap bus service; 3) Resolution No. 2012-43, Donation in the amount of $15 from the Melrose Area Women of Today for Night to Unite.
e. Resolution No. 2012-44, Resolution Appointing Election Judges. The election judge appointments are for the General Election that will be held on Tuesday, November 6, 2012.
f. The City has received a 2:00 A.M. Closing Liquor License Application from Scooter’s Tavern. City Code Chapter 113 adopts M.S. Ch. 340A by reference which allows sales of intoxicating liquor between the hours of 1:00 a.m. and 2:00 a.m. after obtaining a permit from the State of Minnesota. The State provides the application form and collects the license fee. The City has the ability to also establish a fee, however, has chosen not to.
A motion was made by Mr. Christenson, seconded by Mr. Klasen to approve the consent agenda as submitted.
The Council held a Public Hearing to hear all persons present upon the petition received August 23, 2012 from Warrior Properties LLC for the vacation of the interior north-south and east-west utility and drainage easements located in Parcel 66.37010.0291, Lot 1, Block 1, Melrose I-94 Industrial Park excluding those which surround Block 6.
The purpose of the requested vacation is to allow construction of proposed expansion facilities by Warrior Properties LLC. When Warrior Properties LLC initially acquired all four of the lots located in Block 6, Melrose I-94 Industrial Park from the City of Melrose, the lots were combined into a single large parcel now known as a Lot 1. As part of the development plan of Warrior Properties LLC, it was understood that at such time as it became necessary, the City would vacate, at its expense, the north-south and east-west utility and drainage easements which separated the former four lots, now combined into Lot 1. To proceed with the proposed expansion, it is necessary that the interior east-west and north-south easements be vacated.
City Administrator Brethorst presented the Affidavit of Publication of Notice of Hearing in the Melrose Beacon on August 29 and September 5, 2012, the Affidavit of Posting of Notice on August 29, 2012, and the Affidavit of Mailing of Notice to all property owners located within 350 feet of the property proposed to be vacated, which occurred on August 30, 2012.
Director Walz presented the petition and addressed questions presented by the Council and the public.
Joe Roelike spoke against the vacation of easements. He is requesting the City to install a drainage tile along County Road 186 to the culvert to address the storm water run-off. He is also requesting for restitution in the amount of $3,000 for the property damage that was caused by previous storm run-off onto his privately owned agricultural land and a letter from the City stating that the City would provide immediate compensation should, in the future, the water flow onto the privately-owned agricultural land. If the City does not agree to Mr. Roelike’s conditions, he is in objection to the vacation of the easement. There being no further comments, the Public Hearing was closed at 6:12 p.m.
Police Chief John Jensen presented the Police Department’s August report. Chief Jensen noted that due to new updates to the Police Department’s Records Management System, the majority of the monthly reports were not available at this time. He stated there were 210 calls for service during this month compared to 249 for August of 2011. The year-to-date number of calls is 1,845 compared to 2,227 in 2011.
City Attorney Dymoke reported that during the period from August 12 through September 5, he has spent time reviewing documentation regarding the torrens titles for property at Rose Park/Melrose Community LLC.
City Administrator Brethorst provided an update on the Sauk River Park Splash Pad/Skate Board Improvement Project. The Capital Campaign Committee, consisting of seven members, have met to discuss various fund-raising events. Administrator Brethorst is in the process of making application for a DNR Legacy Grant / DNR Trails Grant. The grants are to help fund the improvements to the Sauk River Park and the implementation of the Sauk River Park Master Plan.
Mayor Vogel noted that earlier this evening, a Public Hearing was held on the petition received August 23, 2012 from Warrior Properties LLC for the vacation of the interior north-south and east-west utility and drainage easements located in Parcel 66.37010.0291, Lot 1, Block 1, Melrose I-94 Industrial Park excluding those which surround Block 6. Whether taking action to approve or deny the request, the Council should cite the basis for its decision in the form of a Findings of Fact statement or a resolution. If it decides to approve the request, it must determine that the municipal property proposed to be vacated does not and will not serve any present or future public purpose.
Mr. Finken introduced Resolution No. 2012-45, Resolution Vacating the Interior North-South and East-West Utility and Drainage Easements in Parcel 66.37010.0291, Lot 1, Block 6, Melrose I-94 Industrial Park, City of Melrose, Stearns County, Minnesota Excluding Those Which Surround Block 6. The motion was seconded by Mr. Christenson with a roll call vote recorded as follows: For: Council Members Finken, Christenson, Klasen and Mayor Vogel; Against: None; Absent: Council Member Mayers. A copy of the resolution is on file in the City Administration Office.
Mayor Vogel noted that when the incentive package, consisting of tax increment financing, revolving loan fund assistance, SAC and WAC fee waivers, and other fee reductions was recommended by MADA and subsequently approved by the Council for the Steve Danzl / Twin Pines Catering Company Project, the related documentation addressed the Project’s two adjacent lots located along Kraft Drive SE – parcels 66.36421.0000 and 66.36410.0000. Through a cooperative effort of Mr. Danzl / Twin Pines Catering Company and Overland Properties LLC, the two parcels are being platted as the two-lot subdivision of Overland Dollar Addition. Shortly after the recording of that plat with Stearns County, which is expected to occur about mid-September, Lot 2, Block 1, Overland Dollar Addition is expected to be purchased by Overland Properties LLC from Mr. Danzl / Twin Pines Catering Company. From the onset of the start of Mr. Danzl’s restaurant project, it was anticipated that he would make the vacant commercial property located to the east of his proposed restaurant site available for development.
MADA met earlier in the day and it was the Board’s recommendation that the Council adopt the Resolution Approving Partial Release of Real Property from the Steve Danzl/Twin Pines Catering Company and authorizing the execution of the required documentation.
Mr. Klasen introduced Resolution No. 2012-47, Resolution Approving Partial Release of Real Property Secured by Mortgage Dated May 25, 2012 Executed by Twin Pines Catering Co., as Mortgagor in Favor of Central Minnesota Credit Union, as Lender, Recorded May 31, 2012 as Document No. A1370424 in the Office of the Stearns County Recorder. The motion was seconded by Mr. Finken with a roll call vote recorded as follows: For: Council Members Klasen, Finken, Christenson and Mayor Vogel; Against: None; Absent: Council Member Mayers. A copy of the resolution is on file in the City Administration Office.
A motion was made by Mr. Klasen, seconded by Mr. Finken and unanimously carried concurring with MADA’s recommendation authorizing the execution of the required documentation.
Mayor Vogel stated that in 1999, the City provided revolving loan fund (RLF) assistance to Carstens Industries, Inc. to facilitate with one of the company’s expansion. The balance of that Loan #1999-03-F, which is secured by a mortgage and financing statement, is $29,230.04. Carstens Industries, Inc. is currently in the process of completing another expansion containing approximately 10,000 square feet for which the City has agreed to provide tax increment financing assistance. This 2012 expansion is being financed by the Central Minnesota Credit Union (CMCU) which is requesting as a condition for the financing that the City’s outstanding Loan #1999-03-F to Carstens Industries, Inc. be subordinated to the proposed new debt, as well as the existing debt. The City had previously been in a subordinate position to the CMCU. Because of a favorable loan to value ratio, CMCU has elected to forego the need for an appraisal by an outside agency and conducted an internal market valuation.
MADA met earlier in the day to consider the request received from the CMCU to subordinate the City’s existing RLF debt, mortgage and financing statement to the proposed financing by the CMCU for the Carstens Industries, Inc. 2012 expansion project. It is the recommendation of MADA that the Council approve the request received from the CMCU to subordinate the City’s existing RLF debt, mortgage and financing statement to the existing and proposed financing by the CMCU for the Carstens Industries, Inc. 2012 expansion project.
A motion was made by Mr. Christenson, seconded by Mr. Klasen and unanimously carried concurring with the recommendation of MADA regarding the subordination request and authorizing the execution of the required documentation.
The Filming and Production Services Agreement with DiversiCom (now Arvig) expires at year-end. Staff has received the two-year proposed agreement from Arvig for filming and production services. A motion was made by Mr. Klasen, seconded by Mr. Christenson and unanimously carried approving the two-year agreement with Arvig.
The Council, at its August 23 meeting, gave approval to Resolution No. 2012-39, Resolution Opting to Join the Voluntary Statewide Lump-Sum Firefighter Retirement Plan and authorized the Melrose Fire Relief Association to enter into the State program. Therefore, the Relief Association’s Bylaws need to be revised to reflect this change. A motion was made by Mr. Christenson approving the revisions to the Fire Department Relief Association Bylaws. The motion was seconded by Mr. Klasen with a roll call vote recorded as follows: For: Council Members Christenson and Klasen and Mayor Vogel; Against: None; Abstain: Council Member Finken due to a conflict of interest; Absent: Council Member Mayers.
Mayor Vogel stated that City Administrator Brethorst is writing a formal application for a DNR Legacy Grant / DNR Trails Grant. The grants are to help fund the improvements to the Sauk River Park and the implementation of the Sauk River Park Master Plan. The funding requested will focus on trails, parking, bike racks, curb gutter, shelter. The grant will not include funds for the Splash Pad nor Skate Park as those uses are not weighted highly in the rankings and would reduce our likelihood of an award. The DNR received 99 requests last year and awarded 30. A motion was made by Mr. Finken, seconded by Mr. Klasen and unanimously carried authorizing staff to submit grant applications for the DNR Legacy Grant / DNR Trails Grant and approve all resolutions as required to submit the formal application if needed.
City Administrator Brethorst presented the proposed 2013 Budget for the General Fund. State law requires that the City certify the proposed tax levy to the County Auditor by no later than September 15; therefore, it will be necessary to review the budget and take action on adoption of the proposed preliminary budget and the proposed tax levy at this meeting. The final levy adopted in December can be lower than the levy certified in September, but cannot be higher. The Council discussed the proposed budget and levy at a Special Meeting held on Wednesday, August 22.
Administrator Brethorst stated it is proposed that the preliminary property tax levy be certified at $1,000,000. Also included is a total debt levy of $295,000 for a total proposed tax levy of $1,295,000 and an estimated tax capacity rate of 69.167% which is slightly more than the final levy of 65.702% for 2012 taxes payable. The City must also provide the County Auditor with precise information on: 1) Time and place of a public hearing for the adoption budget and levy will be discussed; 2) The public must have the opportunity to speak and the meeting must not be held before 6:00 p.m.; 3) Date, place and time of the public hearing at which the final budget and levy will be determined, with this meeting to be scheduled after November 24 and before December 27. Staff recommended and the Council concurred that this hearing be scheduled for the December 13 at 6:00 p.m. at the Melrose City Center; 4) Phone number (320-256-4278) that City taxpayers may call if they have questions related to the auditor’s property tax notice, which is generally delivered in November; 5) Address where comments will be received by mail. (225 1st Street NE, Melrose, MN 56352 ATTN: City Administrator)
The above-noted items are part of the revised Truth in Taxation requirements. The information must be included in the minutes and the City must comply with existing publication requirements for minutes. Mayor Vogel noted that the Council during its deliberations on a final budget and levy, hopes to be able to keep the tax capacity rate near or just slightly above last year’s level.
Mr. Finken introduced Resolution No. 2012-46, Resolution Adopting Proposed Tax Levy Approving 2012 Tax Levy, Collectible in 2013 and Setting Hearing Dates. (See attached resolution). The motion was seconded by Mr. Klasen with a roll call vote recorded as follows: For: Council Members Finken, Klasen, Christenson, and Mayor Vogel; Against: None; Absent: Council Member Mayers.
The Council, at its August 30 Special Meeting, received presentations from WSB, Bolton & Menk, SEH, and Stantec. At the conclusion of the RFQ presentations, the Council requested that each firm provide: a summary, a list of grants and a fee schedule.
Mr. Klasen: Believes it was best to review other engineering firms to ensure that the City is receiving quality service at a reasonable price. Mr. Finken: Believes the City has been considering this for some time and believes that issues have presented themselves on some past projects overseen by Stantec. He also noted that he believes they have not aggressively sought after grant money as other firms tend to. Mr. Christenson: SEH works with the water wastewater treatment facility and believes that perhaps fresh eyes would be beneficial. City Administrator Brethorst stated that he had received input from Council Member Mayers recommending WSB. A motion was made by Mr. Finken, seconded by Mr. Klasen and unanimously carried retaining WSB as the City’s Engineering firm.
The Council, at its August 30 Special Meeting, accepted the resignation of Police Officer Chris Swanson. The Council continued discussions on the Police Department staffing levels and whether or not to replace Mr. Swanson. Sandy Imdieke remarked that the Police Department also serve as first responders who are often first at the scene and without them are compromising the safety and the overall welfare of the residents. Tom Budde noted that in addition to providing backup and medical assistance, the fact that the call volume is decreasing would indicate that the Police Officers doing their job in protecting and serving the community.
Mrs. Shawn Swanson spoke asking the Council to replace Police Officer Chris Swanson and requested that the Council consider looking at what the City will forgo by not replacing the officer. Council Member Klasen asked if a part-time Officer would be feasible. Police Chief Jensen noted that the City would not realize any cost savings. Wayne Senst noted that perhaps other cuts can be made. Mayor Vogel noted that he would prefer the item be tabled. It was the consensus of the Council to table the item until the October Meeting.
The following informational items were discussed:
a. Thank you note from Loren and Sharon Meyer for providing intern opportunity to Jenny Lining.
b. Utilities Commission’s August 13 Regular Meeting and August 23 Special Meeting minutes.
c. Letter of Recognition from Resource Training and Solutions. Diane Gruber is the recipient of the 2012 Resource Training & Solutions’ Outstanding Service Award. Ms. Gruber was nominated by her colleagues at RTS.
d. Sauk River Park Capital Campaign Committee’s Meeting minutes.
e. On September 5, Accounting Clerk Sue Rademacher completed her six-month probationary period; therefore, a performance review was completed and is favorable. There is no step increase due with this review.
A motion was made by Mr. Finken, seconded by Mr. Klasen and unanimously carried that the meeting be adjourned at 7:45 p.m.
Patricia Haase, City Clerk