The Melrose City Council met in a Regular Meeting on Thursday, September 21, 2017 at 6:00 p.m. at the Melrose City Center pursuant to due notice being given thereof. Present were Council Members Tony Klasen, Dick Christenson, Justin Frieler, Mayor Joe Finken, City Administrator Michael Brethorst, and City Clerk Patti Haase. Council Member Josh Thieschafer was absent. 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 thanked the Police Department, Fire Department, Streets/Parks Department, Electric Department, and the neighbors who showed up to help each other during the aftermath of the storm.
Approval of the following:
a. the minutes from the Council’s August 14 Special Joint Meeting with the Utilities Commission, the Council’s August 14 Special Meeting, the August 17 Regular Meeting, and the Council’s August 22 Special Joint Meeting with the Melrose Area Development Authority.
b. list of bills in the amount of $392,087.41
c. list of investments for the month of August.
d. The Commission to give consideration approving the 2017-2018 Safety Management Program Contract between the City of Melrose and the Minnesota Municipal Utilities Association (MMUA) for their safety program. The agreement is in effect from October 1, 2017 through September 30, 2018. Total program fees have increased $437.50. The fees are cost shared between the General and Utilities Funds. The Council to concur with the Utilities Commission approving the Safety Management Program Contract.
e. On September 7, Office Assistant I Doris Rieland will complete 18 months of service with the City. She is eligible for a twelve calendar-month step increase. Finance Director Beuning has conducted a review and it is favorable; therefore, recommends approval of a step increase from Step 5 to Step 6.
The Council to concur with the Commission approving Ms. Rieland’s step increase.
f. On September 29, Office Assistant II Sharon Blaskowski will complete one year of service with the City. Finance Director Beuning has conducted a review and it is favorable; therefore, recommends approval of a step increase from Step 4 to Step 5. The Council to concur with the Commission approving Ms. Blaskowski’s increase.
g. Resolution No. 2017-59, Resolution Approving Gambling License to Midwest Outdoors Unlimited Wobegon Partners for an exemption from lawful gambling license to hold a raffle and to sell pull tabs on January 20, 2018 at the Melrose Legion Club, 265 County Road 173 SE.
A motion was made by Mr. Frieler, seconded by Mr. Christenson and unanimously carried to approve the Consent Agenda items.
Police Chief Maus presented the Police Department’s August report. He noted were 348 calls for service during that month, compared to 415 for August 2017. The year-to-date number of calls is 2,307 compared to 2,748 in 2016. A total of 15 citations were written for the month of August. For the month of August, the Department also received 31 agency assist calls. Speed signs have arrived and will be installed next week.
City Attorney Scott Dymoke reported on projects he has been working on for the City:
• Portable Storage Units: Prepared revised ordinance and summary of proposed storage unit ordinance incorporating changes requested by City Council.
• Deferred Special Assessments: Prepared legal opinion on the two types of deferred special assessments, describing their use and application. Forwarded opinion to City staff.
• Nuisance Enforcement: Received copies of police reports of nuisance conditions at three City properties. Prepared drafts of proposed resolutions ordering abatement of nuisances, hearing notices and service lists.
Mayor Finken stated that the Jennie-O Foods TIF District No. 2-3 will have met its allowable duration on October 26, 2017. There being no further increment distribution prior to that date, the City to take action decertifying TIF District No. 2-3. The District will have a $0 fund on the decertification date and thus no surplus increments will be returned to the County for redistribution.
Council Member Klasen introduced Resolution No. 2017-54, Decertifying Tax Increment Financing District No. 2-3 – Jennie-O Foods. The motion was seconded by Mr. Christenson with a roll call vote recorded as follows: For: Council Members Klasen, Christenson, Frieler and Mayor Finken; Against: None; Absent: Council Member Thieschafer.
Mayor Finken noted that the Planning and Zoning Commission, at its September 11 meeting, held a public hearing on the Preliminary and Final Plat for Shaggy’s Towing. The Commission recommends to the Council that the Preliminary Plat and Final Plat be approved. The application is received to accommodate a request submitted by Shaggy’s Towing for the purchase of property and expansion of their facilities.
Council Member Frieler introduced Resolution No. 2017-56, Resolution Approving of Case No. 2017-201, Application from Shaggy’s Towing to Allow Creation of a New Plat. The motion was seconded by Mr. Klasen with a roll call vote recorded as follows: For: Council Members Frieler, Klasen, Christenson, and Mayor Finken; Against: None; Absent: Council Member Thieschafer.
Mayor Finken stated that in October of 2006, the Massmann’s assessments were deferred for a 10-year period being that they qualified for a hardship deferral. The Massmann’s are requesting to have the assessments deferred once again as they qualify under the hardship rules. The Council may grant a deferral based on hardship pursuant to Minn. St. 435.193. To be eligible for a hardship deferral, the property owner must:
1. Be 65 years of age or older, or
2. Meeting certain income limits in comparison to assessment due, or
3. Be retired by virtue of a permanent and total disability, or
4. Be a member of the Minnesota National Guard or other military reserves who is ordered into active military service.
The hardship deferral is only available for the owner’s homestead. If a city council elects to grant hardship waivers, it must adopt a standard for determining hardship. Melrose has adopted a hardship deferral resolution. The Council has the discretion to re-structure the hardship deferral. For example, it could require interest only payments, or payments up to a maximum amount of the property owner’s income.
A motion was made by Mr. Christenson, seconded by Mr. Frieler and unanimously carried to approve the assessment deferral.
Mayor Finken noted that on March 16, the Council approved the creation of Redevelopment TIF District No. 11-1 which included the area on the attached map of Resolution No. 2017-57 and was created to address development of the Kraft site and the fire damaged 400 Block. In an effort to close this file and get the transcript out to the City, Ryan Consulting sent the certification request to the County and asked them to delay the certification until the building value that previously existed on the site went off the valuation. The State Auditor’s Office noticed this and indicated that the actual request date is a critical date when interpreting legislative changes and that this should be addressed to meet the full intent of the City. Upon discussing alternatives, it was agreed that for all parties, decertifying and recreating the district would be the best approach. If the City were not to decertify the district and no project is in place, the District would lose valuable increment.
Council Member Christenson introduced Resolution No. 2017-57, Resolution Decertifying Tax Increment Financing District No. 11-1 – Downtown Development District. The motion was seconded by Mr. Klasen with a roll call vote recorded as follows: For: Council Members Christenson, Klasen, Frieler, and Mayor Finken; Against: None; Absent: Council Member Thieschafer.
A motion was then made by Mr. Christenson, seconded by Mr. Klasen and unanimously carried adopting Resolution No. 2017-58, Calling For A Public Hearing On The Establishment Of Municipal Development District No. 12, The Approval Of The Development Program Related Thereto, The Creation Of Tax Increment Financing District No. 12-1 Therein, And The Adoption Of Tax Increment Finance Plan Relating Thereto, In Relation To The Former Kraft Site And The 400 Block.
Mayor Finken stated that the City of Melrose has an ordinance in place related to a house in need of paint, siding and shingles. Recently, there was an update to the ordinance to follow the practice of the nuisance ordinance which is noted below:
1. Photos taken of the property
2. Property owner notified of the violation and given copies of photos
3. Time frame to take care of the issue
4. Follow up letter allowing more time if not taken care of
5. Sent for City Attorney to review and schedule court date
6. Court date and getting judge to grant abatement – judge generally gives another time frame to allow property owner to take care of the issue before abatement
This process has worked well for general nuisances and was adopted with the housing code ordinance.
The housing code violations have come to the end of their 90-day periods, which is what the City will allow to bring into compliance. This includes paint or siding being needed and shingles. Of the violations that are currently due, 13 are for paint and siding and six are for shingles. The parties with the shingle issues have said they do not have the funding for the project and have been notified yearly for at least two years or longer. Chief Maus will be sending out follow-up notices allowing an additional 20 days, which has been our practice in the past, and then would be following the steps above with City Attorney Scott Dymoke. The question for the Council to consider or discuss is, are we willing to pay for a crew(s) to paint, side and shingle houses after we receive the judge’s order. At a staff level, we have discussed how that could be reimbursed to the City, special assessment, outright billing, etc.
There were also questions about ‘who says my roof is bad’? Now, it is based solely on the Police Department’s determination as to a nuisance or not. The question arises, if the roof isn’t leaking and shingles only look bad, would we still move forward? If there are layers of shingles, is it necessary? The bottom line question is whether the City wants to get into the business of determining home maintenance for the residence? In a review of other cities, staff could not find another city that abates shingles, paint and siding.
Council Member Klasen noted that he believes it is good to be proactive, however, is not in support of enforcing residing or re-shingling through the abatement process.
City Attorney Dymoke recommended considering adding the violations of the housing ordinance on the payable list.
After further discussion, the Council, by consensus, determined to leave the ordinance as written and enforcement will be reviewed on a case-by-case basis.
City Administrator Brethorst stated that at the May 25 Fire Relief Board Meeting and again at the August 23 meeting, the Relief Board directed that the City look at and identify another organization to manage the remaining funds and/or look to the Initiative Foundation to aid us in creating a Community Fund. The Melrose Relief Fund Board is recommending the remaining Melrose Area Relief Funds, in the amount of $14,807.43, be managed by the Melrose Women of Today and MAC (Melrose Area Clergy) and that the funds be held by the City of Melrose as a fiduciary on their behalf. Funds shall be limited to fire or natural disaster event in an amount not to exceed $1,500 per entity (family / business). A motion was made by Mr. Frieler, seconded by Mr. Christenson and unanimously carried approving the City of Melrose as the fiduciary of the Melrose Area Relief funds with the Melrose Women of Today and MAC (Melrose Area Clergy) managing the fund.
Finance Director Beuning presented the proposed 2018 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 30; 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.
It is proposed that the preliminary property tax levy be certified at $975,000. Also included is a total debt levy of $450,000 for a total proposed tax levy of $1,425,000 and an estimated tax capacity rate of 70.77% which is a decrease from the final levy of 70.93 % for 2017 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.
a) Staff recommends this hearing be scheduled for the December 14 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: Finance Director.
Mr. Klasen introduced Resolution No. 2017-55, Resolution Adopting Proposed Tax Levy Approving 2017 Tax Levy, Collectible in 2018 and Setting Hearing Dates. The motion was seconded by Mr. Frieler with a roll call vote recorded as follows: For: Council Members Klasen, Frieler, Christenson, and Mayor Finken; Against: None; Absent: Council Member Thieschafer.
A motion was made by Mr. Klasen, seconded by Mr. Christenson and unanimously carried approving the preliminary 2018 Budget.
Mayor Finken noted that Police Officer Jamie Green has submitted his letter of resignation. Chief Maus is requesting an internal posting of the position. If the City receives applications from the internal posting, a candidate would be presented at the October meeting for full-time employment. In the meantime, the City will need to continue to contract with Stearns County.
A motion was made by Mr. Christenson, seconded by Mr. Frieler and unanimously carried approving the internal posting for a full-time Police Officer.
Mayor Finken stated that the City Attorney and Community Development Director Creelman have been putting together an ordinance that would define portable storage units and ways to enforce said ordinance. The ordinance is meant to limit the amount of time a storage unit can be placed on a property and where it can be placed. The ordinance was brought to the Planning and Zoning Commission for discussion and the Commission recommends to the Council that the ordinance be approved. The Council discussed the ordinance at the August 17 meeting and asked for some changes to be made. A new draft of the ordinance was presented for approval by the Council.
Council Member Klasen questioned the placement of the portable storage units in the rear or side yards. Council Member Christenson felt that perhaps the ordinance was too restrictive for industrial and commercial districts.
The Council, by consensus, tabled action on the ordinance and requested the Planning and Zoning Commission consider revisions to the ordinance as to removing the commercial and industrial district or at the very least making the regulations less restrictive, the placing of the containers, and revisiting the definition of portable storage units.
As Ordinance No. 9-21-2017 was not acted upon, adoption of the Official Title and Summary was not brought before the Council.
Mayor Finken stated that staff has met with the lead MNDOT Bridge Engineer and MNDOT Bridge Finance Manager. Those in attendance were City Engineer Mike Nielson, City Administrator Brethorst and Council Member Tony Klassen via conference call. It was determined that the State would follow its current policies and not fund the channel work as requested. The State did recommend applying for the Local Roads and Bridges Grant to fund a portion of these expenses. This will require a joint application with Stearns County. The deadline for the application is November 1, 2017. City Administrator Brethorst has requested WSB write this grant application and forward it on to the State for consideration.
Now that the City has a better idea as to funding, the estimated cost for the City share of the bridge as proposed is $1.3 million. The State could fund up to $1 million. Stearns County would be the sponsor for the grant, if awarded. The next step proposed is to meet with the environmental stake holders and outline in detail the proposed plan. After that meeting, the City would seek to their initial input. If it is favorable or no “red flags” are raised, the City would then be able to use this information to proceed with a CLOMAR and EAW. Staff has asked WSB to be present answer any additional the Council may have.
The next step would be to start the EAW and CLOMAR. Depending on what is said at the environmental meeting, the Council would need to enter into a contract with WSB to perform this work.
A motion was made by Mr. Klasen, seconded by Mr. Frieler, and unanimously carried to seek a contract services agreement proposal from WSB to perform the EAW and CLOMAR.
Mayor Finken stated that the Parks and Recreation Board has reviewed the City’s sidewalk / pathways plan. From time to time, changes are recommend based on changes in the community. County Road 65 (East Main St) has a roadway walking path designate on the north and south sides of the road. It is proposed to retain the north side designation and amend the south. This is due to the construction of the Jennie-O Turkey Store plant being built on the east side of Melrose. Secondly, Stearns County will be performing road repairs on County Road 65 and has agreed to design and include the sidewalk into the County’s project. This will save on both cost and time for the City.
The measured length for the sidewalk is 1,900 feet. This includes eight required pedestrian ramps, short retaining wall, modify driveway approaches to accommodate a six-foot width. It is estimated to cost $75,000 to do the full project. The funds to pay for this is proposed to come from the $25,000 sidewalk budget for FY 18 and the remaining coming from the budget dedicated to the City participation in County Road 65. Additionally, staff would seek out grants to help offset the cost for the sidewalk. Staff has reviewed the proposed route and feel that it could support adding the sidewalk to the snow removal route.
A motion was made by Mr. Christenson, seconded by Mr. Frieler and unanimously carried to fund the sidewalk.
A motion was then made by Mr. Klasen, seconded by Mr. Frieler and unanimously carried authorizing the Street/Parks Department to include this section of sidewalk to its snow removal route.
The following informational items were reviewed:
a. The minutes from the Utilities Commission’s August 14 Regular Meeting.
b. The following is a list schools and conferences:
1) LMC: Complying with the New Small Cell Wireless, webinar, September 12. Participant: City Administrator Michael Brethorst
c. In July, the City was provided grant funds to complete a housing study and it was completed by ADMark Resources. The study is being provided to Board, Commission and Council members and will be provided to developers as they contact the City with proposals or interests.
d. Central Minnesota Housing Partnership has begun working on gather information for the application and is in regular contact with City staff on the process.
e. The M60 Tank Restoration efforts are planned for September 21-24, depending on the weather. The project is being funded by the Melrose VFW. The work is begin completed by a volunteer group called USABOT Wolverine Battalion. Approximately 3-4 restoration enthusiasts will be doing the work along with City staff and some local club members.
A motion was made by Christenson, seconded by Mr. Frieler and unanimously carried that the meeting be adjourned at 7:15 p.m.
Patricia Haase, City Clerk