Also in attendance were the following: Jim Schulz, Herman Lensing, Myron Knutson, Gary Pierskalla, and Al Koetter.

Staff persons on hand were Paul Hetland and Joel Dasher.

The Pledge of Allegiance was said by those in attendance.

Agenda

Goebel moved and Humbert seconded a motion approving the meeting agenda. Discussion offered. Motion carried 5-0.

Minutes

Goebel moved and Humbert seconded a motion to approve the June 8, 2005 meeting minutes with a grammatical correction noted. Discussion offered. Motion carried 5-0.

New Business

Open Public Forum

Gary Pierskalla had a question. Hetland noted additional information that Industrial Park Plat 4 was signed by the mayor and clerk and waiting signature by Mark and Kathy Middendorf which was expected before the end of the week.

Al Koetter Request for lot split

Al Koetter presented his proposal for a lot split on his property on the north end of the city formerly owned by Berthold Thoennes. Tim Hennen moved and Goebel seconded a motion to hold a hearing on July 13, 2005 to split the lot and the clerk to notify the nearby property owners. Discussion offered. Motion carried 5-0.

2005 Main Street Public Improvement Bond – approval of the open bid held 6/29/05 at 12:00 P.M.

Myron Knutson reported on the bids received for the bond. Information on the debt service schedule based on the low bidder was distributed. He reported that the bid was a good market rate bid. There was a concern raised on whether two bids were adequate, and Knutson responded that the lowest bidder was actually a joint proposal from three companies and that the important thing is that the bond reflects a good market rate which was the case with this bid.

Worms asked about expected costs. Knutson noted that there will be the standard costs including: printing costs, legal costs, PFM's costs, July 20 closing costs, and a paying agent fee from a appointed bank which depending on the bank it may be approximately $225 per year. Hetland distributed a memorandum from Northland Securities regarding the results of the bid. Knutson noted that timing was a factor with rates being slightly higher today than yesterday, however Northland Securities could have offered the same rate as they did Lowry, Minnesota the day prior to our open bid process. It was also further noted that a negotiated bid was not possible due to state statute requirements to engage a open bid for all proposed bonds over $1.2 million.

Knutson also discussed the USDA 1996 Waste Water Improvement Bond. He noted that it lasts until 2025 with an interest rate 4.875%. By incorporating this bond into the Main Street bond, the final amounts show a savings of approximately $2000 with no noticeable annual payment advantage. Hetland also noted the recent information regarding the auditing requirements that would change and the annual savings with those changes implemented would be $5500 to approximately $10,000 annually. To add this to the bond would require negotiation with the low bidder and therefore be taking the offer made by Northland Securities that negotiated bond creation always produce the best results for cities.

Joe Hennen moved and Goebel seconded a motion to authorize Myron Knutson to investigate the option of incorporating the USDA in the Main Street Bond and through the city clerk applying an amount equal to spending down the last two years of the USDA bond. Discussion offered. Motion carried 5-0. Goebel moved and Humbert seconded a motion to accept the lowest bid from Dougherty & Co, LLC; Northland Securities; Bernardi Securities for the True Interest Rate of 4.3229% and the bid as a whole. Discussion offered. Motion carried 5-0.

2nd Street – proposed work

Worms initiated a call to a company looking at repairing the uneven concrete curbs, gutters, and sidewalks along 2nd Street NW and 2nd Street NE and presented information on a bid. Worms recommended that the street commissioners observe the area and come back with a formal recommendation to Council. Tim Hennen stated that it should not have settled as drastically and extensively as it has if the engineering firm at the time initiated the proper inspections and tests. Schulz concurred that it seemed to be a much higher than usual amount of settling and curb issues. Worms noted that the repairing company uses a quarter-sized hole opposed to other competitors using a 3" diameter sized hole to inject a substance that lifts the concrete and pavement. Worms approximated a replacement price of $12,000 which wouldn't include lawn restoration, the bid was $8500 and the lawn would not be disturbed. Humbert noted whether this project added to too many projects in one year. Worms responded that he was advised that it is better to react sooner than to wait for additional problems. Hetland also noted that the project was not budgeted for the year, yet the cost would not remain constant even if no additional damage occurred and with each year, it is expected to become worse if repairs are not made. Schulz as city engineer concurred with the statement. Liability issues and concerns were also raised regarding the possibility of injury due to the extreme situation of some of the curbs and sidewalks. An example was made that the City of St. Michael won't allow more than 1/2" lip on a curb. Freeport does not have this or any standard. Schulz was not familiar with the company. Staff was asked to research the cities of St. Michael, Monticello, and Buffalo and additional references of this maintenance company. Humbert further recommended that the matter should be examined by the street commissioners for the Council to make a decision at the next regularly scheduled meeting on July 13.

Schulz mentioned that on the Welle Plat 2 project the engineering responsibility regarding the settling occurring along Phase 1. Schulz gave a theory on the settlement which he believes is due to dry clay being placed in the ground and later being hydrated producing the resulting settling. Hetland did ask if there was frozen ground placed in the trenches and Schulz responded that absolutely no frozen earth was placed in any trench. Schulz noted that S E H will continue to work to resolve the issues.

Animal Ordinance

Hetland brought forward a rough draft of a registration and license form in compliance with the animal ordinance. One correction was recommended regarding eliminating the area on whether the dog or cat is primarily an inside or outside pet. Recommended changes included the following: making corrections throughout the document to delete dog and replace with "licensed animal" whenever applicable; limit to four licensed pets per household (cats and dogs); and impound fees with the first time free and then the preceding times being $50, $75, and $100. Goebel moved and Humbert seconded a motion to call for a hearing on the proposed changes for July 13, 2005. Discussion offered. Motion carried 5-0.

Welle Plat 2 Request for approval of development per the development agreement with Pilot Land Company

Accepting the project accept the road, accepting the utilities. Humbert moved to work with Pilot Land Company regarding the line of credit letter on the sewer and water infrastructure only on the items completed. The motion died for a lack of a second. Schulz noted that a letter of credit after various stages are completed is a standard practice which is an advantage to the developer but further noted that there is no direct advantage to the City. No action was taken.

Consent Agenda

Tim Hennen moved and Humbert seconded a motion to approve the consent agenda.

Which included the following:

  • Claims in the amount of $80,546.81
  • June payroll

Discussion offered. Motion carried 5-0.

Report – Jim Schulz, SEH, City Engineer

Schulz gave a verbal report. He reported that the Main Street Project is approximately 1 to 2 weeks behind schedule largely due to the issue arising from the location of a gas line between 5th Avenue NE and 6th Avenue NE which was ultimately not along that section of Main Street. He noted that the underground subcontractor, Kraemer Excavating, would begin work in the next week. He noted that Phase 2 would take about three days with services and would be restored with sand and gravel. Phase 3 would end in approximately two weeks. He noted that there is still difficulty working with Xcel Energy on the relocation of a pole by 6th Avenue NE due to a conflict with the current location and the right-of-way. Schulz also reported that the road construction would be downtown, Phase 5 by the end of July.

Schulz noted attending a meeting held by Hetland and also attended by Scott Hamak, city attorney regarding the Island Paradise preliminary plat. It was suggested to contact Kent Roessler on other situations from his experience regarding a developer paying for ultity line extensions and the subsequent requests of third party connections. City staff will report further research at the hearing.

Report – Joel Dasher, Public Works Director

Dasher provided a verbal report and written report which is on file for review.

Humbert moved and Goebel seconded a motion to pay Tim Linn a $25 rental fee for the use of his sprayer for weed control. Discussion included Dasher mentioning that the rental fee would've been approximately double the cost and the volunteer effort by Linn should be compensated as a gesture of good will. Motion carried 5-0.

He further reported that the seal coating is scheduled to take place before the Festival and will be swept up by the City of Melrose prior to the event, the parade route especially.

Report – Paul Hetland, City Clerk/Treasurer

Hetland provided a written and verbal report which is on file for review.

A document was presented from attorney Dan Zimmermann representing Judy Hoppe regarding the request to waive $3485.55 a one time assessment in 2002 for services rendered in the clean-up of property. Discussion included the points that the City requested the lot to be cleaned up without response and the City took the initiative to clean the property. No action was taken and Council encouraged the payment to be made to the City.

Goebel moved and Humbert seconded a motion to allow no driveway access points, driveway aprons along the Main Street Project unless there is a garage on the property. Discussion offered. Motion carried 5-0.

JOBZ information was included in his report and verbally noted. Hetland reported on a Union request for wages incurred on the Mid Central Heating and Air Conditioning project. Worms reported on the JOBZ meeting in Sauk Centre he attended. Requests were made by cities in Stearns County without JOBZ for acreage designation from those cities with the designation. Sauk Centre, Melrose, and Freeport all responded that that they would not automatically give over acreage.

Tim Hennen moved and Humbert seconded a motion to approve a non-intoxicating (3.2) malt beverage license for the Sacred Heart Parish for July 16-17, 2005 located at the grounds of Sacred Heart Church. Discussion offered. Motion carried 5-0.

At 11:06 P.M. Joe Hennen moved and Goebel seconded a motion to adjourn the meeting. Motion carried 5-0.