CITY COUNCIL MINUTES ARE POSTED ON THIS SITE AFTER FORMAL ADOPTION BY THE CITY COUNCIL (minutes are adopted at the next regular meeting)

 

MINUTES OF THE CITY COUNCIL MEETING

AUGUST 11, 2008

 

Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Saint Peter was conducted in the Governors' Room of the Community Center on August 11, 2008.

 

A quorum present, Mayor pro tem Eichmann called the meeting to order at 7:00 p.m.  The following members were present:  Councilmembers Kvamme, Pfeifer, Eichmann, Wetherill, Schultz, and Vogel.  Absent was Mayor Strand.  The following officials were present: City Administrator Prafke and City Attorney Brandt.

 

Approval of Agenda – A motion was made by Schultz, seconded by Pfeifer, to approve the agenda.  City Administrator Prafke asked that the business subsidy request for Vet Rx Holdings LLC be withdrawn from the agenda as the applicant was no longer seeking assistance from the City.  With all in favor, the motion carried on the modified agenda.

 

Public Hearing:  Tax Increment Financing District No. 1-16 Creation –  Mayor pro tem Eichmann opened the public hearing on creation of Tax Increment Financing District No. 1-16 at 7:03 p.m.  David Drown of David Drown Associates indicated Tax Increment Financing District No. 1-13 was created in 2002 to assist with development of lots in the North Industrial Park Subdivision during a nine year life span of the district.  Drown recommended District No. 1-13 be decertified by removal of the remaining undeveloped lots in the subdivision and a new district (No. 1-16) be created to provide an additional nine years of economic development revenue.  There being no further speakers, the public hearing was declared closed at 7:08 p.m.

 

Public Hearing:  Tax Abatement/Business Subsidy Request- Mayor pro tem Eichmann opened the public hearing on a tax abatement/business subsidy request for Immanuel-St. Joseph/Mayo Health Systems at 7:08 p.m.  City Administrator Prafke indicated Immanuel-St. Joseph/Mayo Health Systems was seeking a tax abatement exceeding $100,000 which required a public hearing under State Statutes.  Prafke indicated the exact amount of the business subsidy being requested would not be known until later in the development.  Prafke also pointed out that the request was not dissimilar to the requested assistance previously provided to the Daniels Clinic.  There being no further speakers, the public hearing was declared closed at 7:11 p.m.

 

Approval of Minutes - A motion was made by Wetherill, seconded by Vogel, to approve the minutes of the July 28, 2008 regular City Council meeting.  With all in favor, the motion carried and the minutes were approved.  A complete copy of the minutes of the July 28, 2008 regular City Council meeting is contained in the City Administrator’s book entitled Council Proceedings 18.

 

Consent Agenda – In motion by Pfeifer, seconded by Schultz, Resolution No. 2008-144 entitled “Resolution Approving Consent Agenda“ was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2008-144 is contained in the City Administrator’s book entitled Council Resolutions 17.

 

Tax Increment Financing District No. 1-16 – Community Development Director Wille recommended adoption of a resolution that would amend the boundaries of Tax Increment Financing District No. 1-13 by the removal of approximately 30 undeveloped parcels of land.  In motion by Kvamme, seconded by Schultz, Resolution No. 2008-145 entitled “Resolution Amending The Boundaries Of Tax Increment Financing District No. 1-13“ was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2008-145 is contained in the City Administrator’s book entitled Council Resolutions 17.

 

City Administrator Prafke recommended adoption of a resolution that would establish Tax Increment Financing District No. 1-16 in the North Industrial Park Subdivision for a period of nine years.  In motion by Schultz, seconded by Vogel, Resolution No. 2008-146 entitled “Resolution Approving The Establishment Of Tax Increment Financing District No. 1-16 And Adopting Of The Tax Increment Financing Plan Relating Thereto“ was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2008-146 is contained in the City Administrator’s book entitled Council Resolutions 17.

 

Saint Julien Backwash Recirculation Project Acceptance – Public Works Director Giesking recommended approval for a change order for the Saint Julien Backwash Recirculation Project that would result in a $6,236 deduction to the contract amount, final approval of the contract as completed, and authorization to make final payment to the contractor.  Giesking indicated the total cost of the project was $247,947.  In motion by Pfeifer, seconded by Wetherill, Resolution No. 2008-147 entitled “Resolution Approving Change Order Number One And Accepting Saint Julien Backwash Recirculation Project“ was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2008-147 is contained in the City Administrator’s book entitled Council Resolutions 17.

 

Medical Office Building Financing Plan – City Administrator Prafke and David Drown of David Drown Associates (DDA) reviewed a recommendation by DDA to submit an application to the Minnesota Government Agency Finance Group (MGAFG) for bond funds to assist with the Medical Office Building Project funding.  Drown indicated the interest rate on this funding source was approximately 1% lower than conventional revenue bonds and would result in a savings of up to $750,000. Prafke indicated the action would authorize DDA to begin negotiation on the initial terms of the loan for possible Council action on August 25th.  Prafke also pointed out that this option was a benefit of the City’s membership in the Minnesota Rural Water Association which administered the MGAFG funds.  Drown also pointed out that if the funding request was approved, it would put the City in good shape to seek additional funding for the Medical Office Building project in 2009.  In motion by Pfeifer, seconded by Vogel, Resolution No. 2008-148 entitled “Resolution Authorizing David Drown Associates, Inc. To Seek Project Financing From The Minnesota Governmental Agency Finance Group“ was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2008-148 is contained in the City Administrator’s book entitled Council Resolutions 17.

 

West Welco Letter of Credit – City Administrator Prafke reported Welco Development LLC had entered into a development agreement in 2004 for public improvements in West Welco Subdivision and the development agreement required the developer to maintain a letter of credit equal to 50% of the cost of the public improvements.  Prafke reported the developer had asked to be released from the letter of credit requirement and the proposed resolution provided for the City Attorney to draft a modification to the development agreement releasing the letter of credit.  Prafke also pointed out that the developer would be responsible for all costs involved in the action.  In motion by Schultz, seconded by Kvamme, Resolution No. 2008-149 entitled “Resolution Modifying Development Agreement For Welco West Subdivision To Release Letter Of Credit“ was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2008-149 is contained in the City Administrator’s book entitled Council Resolutions 17.

 

Dranttel Street Improvement Project Bid Award – Public Works Director Giesking recommended the Dranttel Street Improvement Project be awarded to W.W. Blacktopping in the amount of $76,569.15.  Giesking indicated the unit prices were very close to the estimated assessments which had been provided to the property owners before the project was bid.  Giesking also pointed out the project should be completed within two months.  In motion by Kvamme, seconded by Wetherill, Resolution No. 2008-150 entitled “Resolution Awarding Bid For Dranttel Street Improvement Project“ was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2008-150 is contained in the City Administrator’s book entitled Council Resolutions 17.

 

Highway 99 Bridge Acceptance – Public Works Director Giesking reported the Highway 99 bridge over the Minnesota River had been deemed “fracture critical” by the Minnesota Department of Transportation (MnDOT) and would be replaced.  Giesking reported the bridge was on the National Historic Register and MnDOT was required to save the bridge.  Giesking indicated the Parks Board was recommending the City accept the bridge for relocation to an area near the Mill Pond in Riverside Park where the bridge would span the river and ultimately connect to a Le Sueur County Park.  Giesking pointed out that acceptance of the bridge would be contingent upon confirmation of the funding sources for the relocation, evaluation of City costs for the project; and the ability to receive the appropriate permits from MnDOT, the Department of Natural Resources and the Army Corps of Engineers.  Giesking also informed Councilmembers the target date for the bridge relocation was 2013.  In motion by Wetherill, seconded by Vogel, Resolution No. 2008-151 entitled “Resolution Accepting Highway 99 Bridge To Be Relocated To Riverside Park Adjacent To The Mill Pond Contingent Upon Certain Conditions“ was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2008-151 is contained in the City Administrator’s book entitled Council Resolutions 17.

 

Transit Grant Submission – City Administrator Prafke recommended authorization be provided for submission of a grant to the State of Minnesota for funding to operate the City transit system in 2009.  Prafke indicated the proposed budget for transit was $277,987.96 and if received, the grant funding would be 80% of the operating budget.  Prafke also pointed out that the proposed budget was approximately $13,000 higher than 2008 and if the grant was not approved, the transit system would be underfunded by over $200,000.  In motion by Schultz, seconded by Vogel, Resolution No. 2008-152 entitled “Resolution Authorizing Submission Of Transit Grant Application For 2009“ was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2008-152 is contained in the City Administrator’s book entitled Council Resolutions 17.

 

License Application – City Administrator Prafke recommended approval of a tree worker’s license and indicated the background investigation had shown nothing that would prohibit issuance of the license.  In motion by Kvamme, seconded by Schultz, Resolution No. 2008-153 entitled “Resolution Approving New Tree Worker License“ was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2008-153 is contained in the City Administrator’s book entitled Council Resolutions 17.

 

Reports

 

City/County Meeting Schedule – City Administrator Prafke reminded Councilmembers of the City/County meeting scheduled for August 13th.

 

Seal Coating – Public Works Director Giesking reported seal coating would begin the week of August 18th, weather permitting.

 

There being no further business, a motion was made by Pfeifer, seconded by Schultz, to adjourn at 7:52 p.m.  With all in favor, the motion carried.

 

 

MINUTES OF THE CITY COUNCIL MEETING

JULY 28, 2008

 

Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Saint Peter was conducted in the Governors' Room of the Community Center on July 28, 2008.

 

A quorum present, Mayor Strand called the meeting to order at 7:00 p.m.  The following members were present:  Councilmembers Kvamme, Pfeifer, Eichmann, Wetherill, Schultz, Vogel, and Mayor Strand. The following officials were present: City Administrator Prafke, City Attorney Brandt, and City Engineer Domras.

 

Approval of Agenda – A motion was made by Pfeifer, seconded by Wetherill, to approve the agenda.  With all in favor, the motion carried.

 

Approval of Minutes - A motion was made by Pfeifer, seconded by Vogel, to approve the minutes of the July 14, 2008 regular City Council meeting.  With all in favor, the motion carried and the minutes were approved.  A complete copy of the minutes of the July 14, 2008 regular City Council meeting is contained in the City Administrator’s book entitled Council Proceedings 18.

 

Consent Agenda – In motion by Schultz, seconded by Eichmann, Resolution No. 2008-135 entitled “Resolution Approving Consent Agenda“ was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2008-135 is contained in the City Administrator’s book entitled Council Resolutions 16.

 

ISJ Clinic Lease – City Administrator Prafke recommended approval of the final lease with Immanuel-St. Joseph/Mayo Health Systems (ISJ) for City owned land near the hospital.  Prafke indicated the most substantial change to the lease since the Council last discussed it was a “request for proposal” process if a vacancy exists in the City owned medical office building which Prafke indicated would put “everyone on an even playing field” as far as lease of the vacant space.  Prafke reported the lease was for 33,000 square feet of land and ISJ would pay the City $33,000 the first year and $100 per year thereafter.  In motion by Pfeifer, seconded by Wetherill, Resolution No. 2008-136 entitled “Resolution Authorizing Execution Of A Land Lease With Immanuel St. Joseph/Mayo Health System For City Owned Property“ was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2008-136 is contained in the City Administrator’s book entitled Council Resolutions 16.  Councilmember Kvamme recognized Councilmember Pfeifer for his contribution on the issue and indicated he admired and appreciated Councilmember Pfeifer’s efforts.

 

Rezoning Request:  622 Sunrise Drive – Community Development Director Wille presented the Planning and Zoning Commission recommendation to rezone the property at 622 Sunrise Drive from R-2 (one and two family residential) to C-5 (business/professional).  Wille indicated the owners of the property wished to have the land rezoned and the Planning Commission had petitioned for the action.  Wille also pointed out that in the near future the Planning Commission would also petition for C-5 of other property along Sunrise Drive.  In motion by Schultz, seconded by Eichmann, Ordinance No. 401, Second Series entitled “An Ordinance Amending Saint Peter City Code Chapter 11 By Rezoning A Tract Of Land From (R-2) One & Two Family Dwelling To (C-5) Business/Professional Office District“ was introduced.  Upon roll call, with all in favor, the Ordinance was declared passed and adopted.  A complete copy of Ordinance No. 401, Second Series is contained in the City Administrator’s book entitled Council Ordinances 2.

 

Medical Office Building Project Bid Award – City Administrator Prafke indicated the proposed resolution included award of bids, approval of several alternates, rejection of some bids, and authorization to rebid a portion of the project.  David Yanik, from Yanik Companies (the City’s construction management firm), addressed the Council to recommend award of bids for several components of the shell and core of the Medical Office Building.  Councilmember Wetherill questioned whether the 85% leased goal had been achieved.  City Administrator Prafke and Hospital CEO Spike indicated that the lease with the chiropractic practice was very close and that final construction numbers are required in order to determine the lease rate.  Spike indicated Mankato Chiropractic had already hired the Chiropractor to work in Saint Peter and 1,000 patients from their practice are from Saint Peter.  In motion by Pfeifer, seconded by Eichmann, Resolution No. 2008-137 entitled “Resolution Awarding Bids For Construction Of Medical Office Building“ was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2008-137 is contained in the City Administrator’s book entitled Council Resolutions 16.

 

Safe Routes To School Concrete Sidewalk Project Bid Award – Public Works Director Giesking recommended award of the bid for the Safe Routes To School Concrete Sidewalk Project to D.J. Siehndel in the amount of $111,072.08.  Giesking also recommended a supplemental agreement for the project be authorized for additional sidewalk at Jefferson Fields and from Broadway Avenue to Inverness Lane subject to MnDOT approval.  Giesking further pointed out that the resolution authorized $21,769 in expenditures funded by grant funds, for signage and caution lights that will be installed by City staff.  Following a question by City Administrator Prafke, Giesking indicated the project was planned to be completed in August before school begins.  In motion by Wetherill, seconded by Vogel, Resolution No. 2008-138 entitled “Resolution Awarding Bid For Safe Routes To School Project“ was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2008-138 is contained in the City Administrator’s book entitled Council Resolutions 16.

 

Hospital Equipment Purchases – Community Hospital CEO Spike requested authorization to purchase a phacoemulsification unit that is used during cataract surgery from Alcon in the amount of $60,000.  Spike indicated the Alcon unit was not the lowest bid, but the low bidder’s equipment didn’t have the safety features specified in the bid documents.  In motion by Schultz, seconded by Eichmann, Resolution No. 2008-139 entitled “Resolution Approving Capital Purchase For Community Hospital“ was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2008-139 is contained in the City Administrator’s book entitled Council Resolutions 16.

 

Spike also requested authorization to purchase an automated medication dispensing unit for the hospital from low bidder Pyxis in the amount of $135,589.  In motion by Vogel, seconded by Eichmann, Resolution No. 2008-140 entitled “Resolution Approving Capital Purchase For Community Hospital“ was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2008-140 is contained in the City Administrator’s book entitled Council Resolutions 16.

 

Transmission Line Easements – Public Works Director Giesking outlined the plan for a new electric transmission line from the proposed north substation to the Broadway Substation and ultimately connecting to the Excel lines along Highway 99 West.  Giesking reported a portion of the line will go underground through the North Industrial Park Subdivision and will cross City owned lots.  Giesking recommended utility easements be established on the City owned lots before the lots are sold to private owners.  In motion by Eichmann, seconded by Vogel, Resolution No. 2008-141 entitled “Resolution Establishing Easements On Certain Properties In North Industrial Park Subdivision“ was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2008-141 is contained in the City Administrator’s book entitled Council Resolutions 17.

 

North Industrial Park Subdivision Tax Increment Financing Plan – Community Development Director Wille recommended a public hearing be called for August 11th to consider certification of new tax increment financing district No. 1-16.  Wille indicated the district encompasses a portion of North Industrial Park Subdivision and would be beneficial for development of the Saint Peter Development Corporation spec building which was recently sold to Vet RX.  Wille also pointed out that both Nicollet County and School District #508 had agreed to waive the 30-day notice provision for the hearing.  In motion by Schultz, seconded by Wetherill, Resolution No. 2008-142 entitled “Resolution Calling Public Hearing On The Creation Of Tax Increment Financing District No. 1-16 Therein And The Adoption Of A Tax Increment Financing Plan Relating Thereto“ was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2008-142 is contained in the City Administrator’s book entitled Council Resolutions 17.

 

Public Works Remodel Project Architectural Services – Public Works Director Giesking requested authorization for architectural services related to remodeling of a portion of the Public Works administration building.  Giesking indicated the original project had been deemed too costly and City staff had been working on portions of the project to remodel the break room and remodeling another space into a locker room as time allowed.  Giesking indicated the Building Official had pointed out changes in the Building Code requiring additional architectural services and Paulsen Architects had agreed to do the work for a fee of $2,300.  In motion by Wetherill, seconded by Pfeifer, Resolution No. 2008-143 entitled “Resolution Retaining Architects To Re-Design Locker Rooms For Public Works“ was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2008-143 is contained in the City Administrator’s book entitled Council Resolutions 1.

 

Reports

 

Mayor’s Report – Mayor Strand reported on his recent activities which included attending a Coalition of Greater Minnesota Cities board meeting and plans to attend the Coalition annual conference in Mankato the following week; attending the first meeting of the Highway 169 Coalition; and meeting with Gustavus Adolphus College Vice-President Gwen Freed regarding a study she is doing on town-gown relationships.

 

Crack Sealing/Seal Coating Project Schedules – Public Works Director Giesking provided an update on the projected schedule for completion of crack sealing and seal coating.

 

Website Information – City Administrator Prafke pointed out that the City’s financial report for 2007 is now available on the City website under the finance/utility billing section.

 

There being no further business, a motion was made by Pfeifer, seconded by Wetherill, to adjourn at 7:53 p.m.  With all in favor, the motion carried.

 

 

MINUTES OF THE CITY COUNCIL MEETING

JULY 14, 2008

 

Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Saint Peter was conducted in the Governors' Room of the Community Center on July 14, 2008.

 

A quorum present, Mayor Strand called the meeting to order at 7:01 p.m.  The following members were present:  Councilmembers Kvamme, Pfeifer, Eichmann, Wetherill, Schultz, Vogel, and Mayor Strand. The following officials were present: City Administrator Prafke, City Attorney Brandt, and City Engineers Domras and Loose.

 

Approval of Agenda – A motion was made by Pfeifer, seconded by Eichmann, to approve the agenda.  With all in favor, the motion carried.

 

Approval of Minutes - A motion was made by Schultz, seconded by Wetherill, to approve the minutes of the June 23, 2008 regular City Council meeting.  With all in favor, the motion carried and the minutes were approved.  A complete copy of the minutes of the June 23, 2008 regular City Council meeting is contained in the City Administrator’s book entitled Council Proceedings 18.

 

Visitors – Ray Olson, 1816 West Welco, addressed the Council to ask questions about the Dodd Avenue Underpass project including where the idea originated from, the cost, and whether pedestrian traffic counts were completed prior to the project being authorized.  Olson complained about the lack of handicap accessibility at the intersection of Dodd Avenue and North Washington Avenue.  City Administrator Prafke provided a brief overview of the underpass project and indicated he would meet with Olson at a later date regarding the handicap access issue.

 

Consent Agenda – Mayor Strand requested the addition of three additional election judges to be added to the consent resolution.  In motion by Wetherill, seconded by Vogel, Resolution No. 2008-120 entitled “Resolution Approving Consent Agenda“ was introduced with the additional judge appointments.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2008-120 is contained in the City Administrator’s book entitled Council Resolutions 16.

 

SJ Louis Lawsuit Settlement – City Attorney Brandt recommended settlement of a lawsuit between the City and S.J. Louis Construction regarding work done by a subcontractor of SJ Louis.  Brandt stated the settlement offer of $65,000 was a “good faith attempt to settle a disappointing situation”.  City Administrator Prafke indicated that approval of the resolution would also close out the contract for the work.  In motion by Pfeifer, seconded by Eichmann, Resolution No. 2008-121 entitled “Resolution Authorizing Settlement In S.J. Louis Construction, Inc. Versus City of Saint Peter“ was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2008-121 is contained in the City Administrator’s book entitled Council Resolutions 16.

 

ISJ Clinic Lease and Tax Abatement/Business Subsidy Request Hearing – City Administrator Prafke presented the proposed lease with Immanuel-St. Joseph/Mayo Health System (ISJ) for City owned land adjacent to Community Hospital.  Prafke indicated the lease had been modified based on Council discussion at the previous workshop session and was for 33,000 square feet (building on 25,000 square feet), for a term of fifty years at $1.05 per square foot, and $100 per year.  Prafke indicated the lease addressed issues such as location, look of the building, signage, insurance, shared maintenance costs for snow removal and lawn mowing and future parking lot rebuild as well as addressing a request by ISJ regarding possible vacant space in the City medical clinic building.  Prafke indicated that should space become available in the City building, ISJ would have thirty days advance notice before other possible tenants to lease the space at fair market rate.  Prafke also pointed out that market rate would be determined by a certified appraiser and if the rate was not acceptable or if ISJ had no interest in the space, it could be rented to other parties at that same, but not lower, market rate. 

 

Councilmember Kvamme expressed his uneasiness with the wording regarding lease of space in the City owned clinic building which he felt was unclear and needed additional discussion by the Council.  Councilmember Eichmann agreed.   City Attorney Brandt indicated the language provided ISJ with the right of first negotiation on any vacant space as it would be more efficient for ISJ to lease from the City than to expand and it was only for space in the City medical office building and not the Hospital.  City Administrator Prafke indicated it was the best attempt by staff and the City Attorney to address Council concerns.  A motion was made by Kvamme, seconded by Schultz to table action on the proposed lease for two weeks.  A representative of ISJ, who was in the audience, indicated it was their intent to break ground on the new building the following week.  Councilmember Pfeifer indicated his belief that trust was required on both sides to make the project work.  Councilmember Kvamme indicated he agreed if the lease was for a five year period, but not for a fifty year lease.  On the motion, with Councilmembers Schultz, Vogel, Kvamme and Eichmann voting aye, Councilmembers Wetherill and Pfeifer voting nay, the motion carried and action was tabled.

 

City Administrator Prafke recommended a public hearing be called for August 11th for a tax abatement business subsidy being requested by ISJ.  In motion by Kvamme, seconded by Eichmann, Resolution No. 2008-122 entitled “Resolution Setting A Date For A Public Hearing On The Approval Of A Tax Abatement Resolution And Business Subsidy For The Purpose Of Funding Development Costs For A Proposed Medical Clinic“ was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2008-122 is contained in the City Administrator’s book entitled Council Resolutions 16.

 

Rezoning Request:  622 Sunrise Drive – A motion was made by Kvamme, seconded by Eichmann to table action on the rezoning request which was tied to the ISJ lease that was tabled earlier in the meeting.  With Councilmembers Schultz, Vogel, Kvamme, and Eichmann voting aye, Councilmembers Wetherill and Pfeifer voting nay, the motion carried and action was tabled.

 

Petition For Improvement Of Dranttel Street – City Administrator Prafke pointed out that three actions were being requested including acceptance of the petition for improvement and authorizing preparation of a feasibility study; acceptance of the feasibility study; and authorizing Bolton and Menk, Inc. to provide for preparation of plans and specifications and receipt of bids for the project.  Community Development Director Wille and City Engineer Domras reviewed the petition received by Fred and Joy Struck and David and Judy Kerr for improvement of Dranttel Street from Highway 169 to Old Minnesota Avenue which would be funded by assessments to the two property owners.  Wille indicated the roadway included a sixty foot right-of-way and customers at Traverse des Sioux Garden Center were currently parking in the right-of-way.  Domras reported the project included a six foot concrete sidewalk on the north side, curb and gutter, nine ton design with a fifty-two foot (52’) wide street with on-street parking (diagonal on the north side and parallel on the south side); storm sewer improvements and catch basins for an estimated cost of $90,900.  Domras also pointed out the City’s share of costs at the intersections was approximately $9,700.  Wille reported the Kentucky Fried Chicken property, which would be built south of the roadway, would be built to gateway standards and the property owner may be petitioning for waiver of subdivision to split the property into two separate parcels.  In motion by Pfeifer, seconded by Schultz, Resolution No. 2008-123 entitled “Resolution Declaring Adequacy Of Petition And Ordering Preparation Of Feasibility Report For Proposed Improvement For Dranttel Street“ was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2008-123 is contained in the City Administrator’s book entitled Council Resolutions 16.

 

In motion by Kvamme, seconded by Vogel, Resolution No. 2008-124 entitled “Resolution Receiving Feasibility Report On Proposed Improvement Of Dranttel Street“ was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2008-124 is contained in the City Administrator’s book entitled Council Resolutions 16.

 

In motion by Vogel, seconded by Eichmann, Resolution No. 2008-125 entitled “Resolution Authorizing Plans and Specifications For The Proposed Improvement Of Dranttel Street“ was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2008-125 is contained in the City Administrator’s book entitled Council Resolutions 16.

 

Purchase Of Replacement Electric Utility Truck – Public Works Director Giesking requested authorization to proceed with the purchase of a truck chassis from Wolf Motors, Inc. in the amount of $31,910.80 plus trade-in of the existing truck and purchase of a stainless steel dump box and hoist from Crysteel Manufacturing in the amount of $10,875.67, all to be funded by budgeted and reserve funds from the electric utility.  In motion by Pfeifer, seconded by Wetherill, Resolution No. 2008-126 entitled “Resolution Authorizing Purchase Of One And One-Half Ton Truck Chassis And Box For Electric Utility“ was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2008-126 is contained in the City Administrator’s book entitled Council Resolutions 16.

 

Seasonal Employee Wage Scale Modification – City Administrator Prafke reported the federal minimum wage was increasing July 24, 2008 and recommended modifications to the wage scales for Recreation and Leisure Services seasonal positions as well as modifications to individual employee wages to be effective July 14, 2008 to coincide with the City’s payroll schedule.  Prafke indicated the increases were for all positions to ensure the wage scale does not become compressed.  In motion by Schultz, seconded by Vogel, Resolution No. 2008-127 entitled “Resolution Modifying Recreation and Leisure Services Department Seasonal Wage Scales“ was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2008-127 is contained in the City Administrator’s book entitled Council Resolutions 16.

 

In motion by Pfeifer, seconded by Wetherill, Resolution No. 2008-128 entitled “Resolution Modifying Seasonal Employees Wages“ was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2008-128 is contained in the City Administrator’s book entitled Council Resolutions 16.

 

Highway 169 Coalition Representation – City Administrator Prafke recommended the City designate one appointed and one elected representative to the Highway 169 Coalition which was formed by the City of Jordan.  Prafke recommended the elected representative be Mayor Strand with Councilmember Pfeifer designated as the alternate and the appointed representative be Public Works Director Giesking with Community Development Director Wille as the alternate.  In motion by Vogel, seconded by Eichmann, Resolution No. 2008-129 entitled “Resolution Designating City Representation To Highway 169 Coalition“ was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2008-129 is contained in the City Administrator’s book entitled Council Resolutions 16.

 

Warren Park Playground Donation – Public Works Director Giesking indicated residents of the Standard Subdivision wished to have additional playground equipment installed in Warren Park and were undertaking fundraising to buy new equipment for the park.  City Administrator Prafke recommended adoption of a motion of support for the project and the fundraising efforts.  Prafke indicated that once all funding was reached, the Council would be asked to accept the donation as provided for in the City’s donation policy.  A motion was made by Pfeifer, seconded by Vogel in support of the fundraising efforts for additional playground equipment for Warren Park.  With all in favor, the motion carried.

 

Request For City Assistance:  Nicollet County Fair – City Administrator Prafke recommended approval of a request by the Nicollet County Fair board for use of City picnic tables and the City water truck during the County Fair.  In motion by Wetherill, seconded by Eichmann, Resolution No. 2008-130 entitled “Resolution Approving Request For City Assistance For Nicollet County Fair“ was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2008-130 is contained in the City Administrator’s book entitled Council Resolutions 16.

 

Community Education Memorandum Of Understanding – City Administrator Prafke recommended approval for execution of a memorandum of understanding between the City and School District #508 for provision of services which were previously provided by the District.  Prafke indicated the City had entered into the agreement for the past few years due and the programs were being provided more efficiently by the City.  Prafke indicated the payment to the City for the programming was $4,000 less than the previous year but the City was still breaking even.  In motion by Schultz, seconded by Vogel, Resolution No. 2008-131 entitled “Resolution Authorizing Execution Of Youth Development Memorandum Of Understanding“ was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2008-131 is contained in the City Administrator’s book entitled Council Resolutions 16.

 

2007 Audit Acceptance – Finance Director O'Connell reviewed the findings of the City’s auditor for the 2007 audit and indicated the City had received an unqualified audit and the five findings were minimal.  O’Connell indicated the audit showed the City’s general fund balance was increasing, the enterprise funds were doing well and the overall debt level of the City was decreasing.  City Administrator Prafke indicated the good results were due to adherence to the budget and day to day decisions being made by all City staff.  In motion by Kvamme, seconded by Eichmann, Resolution No. 2008-132 entitled “Resolution Accepting 2007 Financial Statements Together With Independent Auditor’s Report“ was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2008-132 is contained in the City Administrator’s book entitled Council Resolutions 16.

 

Greenhill Reservoir Refurbishment Project – Public Works Director Giesking indicated the paint on the Greenhill Reservoir was failing and recommended a project to refurbish the reservoir which was last completed in 1994.  Giesking recommended Bolton and Menk, Inc. be retained to prepare plans, specifications and contract documents and solicit bids for the project for a fee of $40,000.  Giesking indicated the “best value contracting” approach would be utilized when making a recommendation for a contractor on the project and staff hoped the work could be completed during the low water usage period this fall.  Giesking also pointed out that Bolton and Menk, Inc. had a trained paint inspector on staff who would work on the project to ensure compliance with specifications.  In motion by Pfeifer, seconded by Eichmann, Resolution No. 2008-133 entitled “Resolution Retaining Engineers To Prepare Plans, Specifications, Contract Documents And Solicit Bids For Repainting Of Greenhill Reservoir“ was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2008-133 is contained in the City Administrator’s book entitled Council Resolutions 16.

 

Fire Department Uniform Funding – City Administrator Prafke recommended approval of a request by the Fire Department to assist with financing for dress uniforms for existing members.  Prafke recommended the Department be “loaned” $18,600 to be re-paid over five years and that the City authorize budgeted Fire Department funds to pay for one-half of the uniform cost for future members. In motion by Eichmann, seconded by Schultz, Resolution No. 2008-134 entitled “Resolution Approving Funding For Fire Department Dress Uniforms“ was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2008-134 is contained in the City Administrator’s book entitled Council Resolutions 16.

 

Reports

 

Mayor’s Report – Mayor Strand reported on his recent activities which included attending the Fourth of July festivities; the all school reunion; the rubber duck derby fundraiser for the Creative Play Place; and Region Nine Development Commission meetings.  Mayor Strand commented about how successful the reunion and the Fourth of July events were for the community.  Strand also indicated he continues to serve as Chairperson of Region Nine.

 

Fourth of July Assistance Thanks – City Administrator Prafke passed on the appreciation of Chamber of Commerce President Larry Haugen for the assistance provided by City employees for the Fourth of July event.

 

SMMPA/APPA Updates – Public Works Director Giesking provided a lengthy update on activities and issues being discussed by Southern Minnesota Municipal Power Agency (SMMPA) and the American Public Power Association (APPA).  Giesking indicated SMMPA was entering into a project to develop 100 megawatts of wind power on a wind farm 60 miles east of Saint Peter.

 

Arts Association Meeting Discussion – Councilmember Kvamme reported the first “Second Saturday” event for the Arts Association would take place on August 9th and the public would have an opportunity to shop in Saint Peter and visit with local artists or purchase their work.

 

City/School and City/School/Gustavus/County Meeting Discussion – City Administrator Prafke reported that discussion at the City/School and City/School/Gustavus/County meetings of July 9th included volunteer coordinator, green communities, shared athletic fields, vital age initiative, Regional Treatment Center and State owned property, the Safe Routes to School project, and the economic development impact on population, school development, and tax increases.

 

There being no further business, a motion was made by Vogel, seconded by Pfeifer, to adjourn at 8:04 p.m.  With all in favor, the motion carried.

 

 

 

MINUTES OF THE CITY COUNCIL MEETING

JUNE 23, 2008

 

Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Saint Peter was conducted in the Governors' Room of the Community Center on June 23, 2008.

 

A quorum present, Mayor Strand called the meeting to order at 7:00 p.m.  The following members were present:  Councilmembers Kvamme, Pfeifer, Eichmann, Wetherill, Schultz, Vogel, and Mayor Strand. The following officials were present: City Administrator Prafke, City Attorney Brandt, and City Engineers Domras and Loose.

 

Approval of Agenda – Mayor Strand announced the request for purchase of a replacement truck would be removed from the agenda because the truck had been sold to someone else.  A motion was made by Kvamme, seconded by Schultz, to approve the agenda as modified.  With all in favor, the motion carried.

 

Public Hearing:  Rezoning Request For Property At 622 Sunrise Drive – Mayor Strand opened the public hearing  on a request to rezone the property at 622 Sunrise Drive from R-2 (one and two family residential) to C-5 (business/professional office) at 7:02 p.m.  Community Development Director Wille reviewed the Planning and Zoning Commission recommendation to rezone the property at 622 Sunrise Drive.  Wille indicated the owner of the property, Immanuel-St. Joseph/Mayo Health System, will be building a new clinic next to the Hospital and they want to ensure the marketability of the current site after they relocate.  Wille pointed out the current use is a non-conforming use under the zoning regulations and if the property were rezoned it could be used for any of the approved uses in the zoning code and could be considered for any of the conditional uses identified in the code.  There being no further speakers, the public hearing was declared closed at 7:06 p.m.

 

Approval of Minutes - A motion was made by Schultz, seconded by Vogel, to approve the minutes of the June 9, 2008 regular City Council meeting.  With all in favor, the motion carried and the minutes were approved.  A complete copy of the minutes of the June 9, 2008 regular City Council meeting is contained in the City Administrator’s book entitled Council Proceedings 18.

 

Visitors – Peter Rheaume, 419 West Jefferson Avenue, addressed the Council to voice his concerns about the detour of Highway 295 onto Jefferson Avenue, potholes on Minnesota Avenue, naming of streets, and the lack of copies of the agenda in the Governors' Room.

 

Consent Agenda – In motion by Kvamme, seconded by Wetherill, Resolution No. 2008-110 entitled “Resolution Approving Consent Agenda“ was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2008-110 is contained in the City Administrator’s book entitled Council Resolutions 16.

 

Business Subsidy Request:  N & D Of St. Peter, LLC (dba MGM Liquor Warehouse) – Community Development Director Wille presented a recommendation for approval of a revolving loan in the amount of $111,500 to N & D of St. Peter, LLC for expansion of their business at 100 North Minnesota Avenue.  Wille indicated the loan request had been tabled at the June 9th Council meeting and since that time the owners had been able to sell the home on the property directly to the west of the current building and the house would be moved to Le Sueur.  Wille indicated the Economic Development Authority recommendation for the loan terms included amortization over thirty years with a balloon payment at five years; 3% interest; and the loan being collateralized by personal guarantees by the applicants and their spouses; a mortgage on the property at 100 North Minnesota Avenue; and a lien on furnishings and equipment from the business.  Wille also indicated the owners had asked him to point out to the Council that the two week delay had resulted in an additional $5,000 in costs for the materials.  In motion by Kvamme, seconded by Vogel, Resolution No. 2008-111 entitled “Resolution Approving $111,500 Revolving Loan To N & D Of St. Peter, LLC dba MGM Liquor Warehouse To Partially Finance The Expansion Of The Commercial Building Located At 100 North Minnesota Avenue And Authorizing The Mayor And City Administrator To Execute The Associated Business Subsidy Agreement“ was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2008-111 is contained in the City Administrator’s book entitled Council Resolutions 16.

 

SCADA Improvement For Upper Water System Project Acceptance – Water Utilities Superintendent Moulton, appearing on behalf of Public Works Director Giesking who was out of town, presented the recommendation to accept the SCADA Improvement For Upper Water System Project.  Moulton indicated the project had been substantially completed on February 25th, but the contractor had failed to turn in the correct as-built drawings for the project until recently.  In motion by Schultz, seconded by Pfeifer, Resolution No. 2008-112 entitled “Resolution Accepting SCADA Improvements For The Upper System Project“ was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2008-112 is contained in the City Administrator’s book entitled Council Resolutions 16.

 

City Assistance Request:  Fourth of July Celebration – City Administrator Prafke recommended approval for the request for City assistance submitted by the Chamber of Commerce for the Fourth of July celebration in Saint Peter.  Prafke indicated the only change from the 2007 request was for an extension of the parade staging area and a smoother transition area at the end of the parade for entries to leave the parade route.  In motion by Pfeifer, seconded by Vogel, Resolution No. 2008-113 entitled “Resolution Authorizing City Assistance For Fourth Of July Event“ was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2008-113 is contained in the City Administrator’s book entitled Council Resolutions 16.

 

2008 Seal Coating Project Bid Award And Change Order #1 – Water Utilities Superintendent Moulton recommended award of the bid for the 2008 seal coating project to low bidder Southern Minnesota Construction.  Moulton indicated the project was budgeted in an amount that would seal coat 160 blocks, five miles of trail and the wastewater treatment plant road, but the actual number of blocks may vary.   Moulton also indicated that all three of the bidders had bid a type of oil that was different than what the City had specified and staff had confirmed with SMC that they would use the correct type which was priced $0.30 per gallon cheaper than the type bid which meant the City could complete additional blocks of seal coating.  In motion by Pfeifer, seconded by Wetherill, Resolution No. 2008-114 entitled “Resolution Awarding Bid For 2008 Seal Coating Project“ was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2008-114 is contained in the City Administrator’s book entitled Council Resolutions 16.

 

Water Utilities Superintendent Moulton recommended change order number one for the seal coat project be approved which would lower the contract price based on using the correct type of oil.  In motion by Kvamme, seconded by Eichmann, Resolution No. 2008-115 entitled “Resolution Approving Change Order Number One For The 2008 Seal Coating Project“ was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2008-115 is contained in the City Administrator’s book entitled Council Resolutions 16.

 

Hallett’s Detention Basin Improvements Bid Award – Water Utilities Superintendent Moulton recommended the bid for the Hallett’s Detention Basin Improvements Project be awarded to low bidder BCI Brunz Construction, Inc. in the amount of $55,865.15.  Moulton indicated BCI had previously done work on the Hallett’s settling basin.  Moulton also pointed out the project included installation of additional riprap at the Gault Detention Basin.  In motion by Kvamme, seconded by Wetherill, Resolution No. 2008-116 entitled “Resolution Awarding Bid For Hallett’s Detention Basin Improvement Project“ was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2008-116 is contained in the City Administrator’s book entitled Council Resolutions 16.

 

Parking Lot #5 Development Funding – City Administrator Prafke recommended a budget of $24,750 be established for hiring consultants to assist in development of feasibility information related to construction of a building on Parking Lo #5.  Prafke indicated the feasibility work would include design and development, cost estimating, and legal services which is all information that will be important in deciding whether to proceed with development of a building.  Prafke indicated the engineers from I & S understood the Council’s desire to be sympathetic with the historic nature of the downtown and that different building sizes and uses including, retail, office and housing are being looked at for the building.   Prafke pointed out that should no project be developed, the funds expended by the City may not be recoverable, however it was a good opportunity to develop public/private partnerships and enhance the quality of business opportunities in Saint Peter.  Councilmember Kvamme indicated he was supportive of the development and the Food COOP relocating to the building but he felt the I & S proposal focused on only one approach and he wanted to ensure the Council had cost estimates for alternatives.  Prafke pointed out that the resolution doesn’t authorize I & S to perform the services, it only established funding for consultant services.  In motion by Kvamme, seconded by Eichmann, Resolution No. 2008-117 entitled “Resolution Authorizing Development Funds For Municipal Parking Lot #5 Development“ was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2008-117 is contained in the City Administrator’s book entitled Council Resolutions 16.

 

Crack Sealing Project – Water Utilities Superintendent Moulton recommended acceptance of the quote from Hardline Asphalt in the amount of $0.99 per pound applied for the crack sealing project.  City Administrator Prafke pointed out the total linear feet to be sealed would be limited by the previously adopted budget.  In motion by Eichmann, seconded by Vogel, Resolution No. 2008-118 entitled “Resolution Accepting Quote For Crack Sealing Streets And Trails“ was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2008-118 is contained in the City Administrator’s book entitled Council Resolutions 16.

 

License Applications – City Administrator Prafke recommended approval of license applications for a peddler and tree worker.  In motion by Pfeifer, seconded by Schultz, Resolution No. 2008-119 entitled “Resolution Approving Licenses“ was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2008-119 is contained in the City Administrator’s book entitled Council Resolutions 16.

 

Reports

 

Mayor’s Report – Mayor Strand reported on his recent activities which included attending the League of Minnesota Cities annual conference which he indicated was the best conference he had ever attended; the town-gown luncheon at Gustavus Adolphus College; Business After Hours at the Amigo golf tournament; and the Moondogs game with the Ambassadors.

 

League of Minnesota Cities Conference – Councilmember Wetherill reported on his attendance at the League annual conference and indicated it was informational and fun.

 

Norseland Sesquicentennial Celebration – Councilmember Wetherill complimented the organizers of the Norseland Sesquicentennial celebration on a successful event.

 

Arts Association Meeting Discussion – Councilmember Kvamme reported the focus of discussion at the last Arts Association meeting was development of the Second Saturday events which will begin in August.

 

City/County Meeting Discussion – City Administrator Prafke and Councilmember Pfeifer reported on discussion at the City/County meeting of June 18th which included state health grant funds, fuel usage, water planning issues, credit card acceptance for payment of City and County services; mandates; and library services in Nicollet.  Councilmember Pfeifer also pointed out the group had been informed of the new County Engineer’s appointment.

 

Council Goal Session – City Administrator Prafke reminded Councilmembers of the Council goal session scheduled for Thursday, June 26th at 3:00 p.m. in the Governors' Room of the Community Center.

 

Dodd Avenue Closure – City Administrator Prafke informed Councilmembers and the public that Dodd Avenue would be closed from Sunrise Drive to the north Summit Park entrance (Oxford Lane) for approximately six weeks while the contractor completes the Dodd Avenue Underpass Project.

 

Upcoming Events – Mayor Strand reminded everyone of upcoming events including the Fourth of July parade and the All School reunion.

 

There being no further business, a motion was made by Vogel, seconded by Pfeifer, to adjourn at 8:04 p.m.  With all in favor, the motion carried.

 

 

 

MINUTES OF THE CITY COUNCIL MEETING

JUNE 9, 2008

 

Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Saint Peter was conducted in the Governors' Room of the Community Center on June 9, 2008.

 

A quorum present, Mayor Strand called the meeting to order at 7:00 p.m.  The following members were present:  Councilmembers Kvamme, Pfeifer, Eichmann, Wetherill, Vogel, and Mayor Strand. Absent was Councilmember Schultz.  The following officials were present: City Administrator Prafke, City Attorney Brandt, and City Engineer Domras.

 

Approval of Agenda - A motion was made by Pfeifer, seconded by Vogel, to approve the agenda.  With all in favor, the motion carried.

 

Public Hearing:  Business Subsidy Request – N & D of St. Peter, LLC (dba MGM Liquor Warehouse) – Mayor Strand opened the public hearing on a business subsidy request submitted by N & D of St. Peter, LLC at 7:02 p.m.  Community Development Director Wille provided information regarding a request from N & D of St. Peter, LLC dba MGM Liquor Warehouse for a business subsidy in the amount of $135,500 for expansion of their building at 100 North Minnesota Avenue.  Wille indicated the public purpose of the business subsidy included enhancement of economic diversity and stabilizing the community by the expansion of retail services within the central business district.  Wille also reviewed the goals of the business subsidy which included successful completion of the expansion of the MGM Liquor Warehouse business, but cautioned that creation or retention of jobs is not a goal of the project.  Wille also pointed out that the term of the business subsidy agreement would be the same as the terms of the loan being requested.  There being no further speakers, the public hearing was declared closed at 7:04 p.m.

 

Approval of Minutes - A motion was made by Eichmann, seconded by Wetherill, to approve the minutes of the May 27, 2008 regular City Council meeting.  With all in favor, the motion carried and the minutes were approved.  A complete copy of the minutes of the May 27, 2008 regular City Council meeting is contained in the City Administrator’s book entitled Council Proceedings 18.

 

Consent Agenda – In motion by Kvamme, seconded by Vogel, Resolution No. 2008-102 entitled “Resolution Approving Consent Agenda“ was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2008-102 is contained in the City Administrator’s book entitled Council Resolutions 16.

 

Highway Banner Policy Modification – City Administrator Prafke recommended the specifications for highway banners be modified to reduce the maximum length of a banner from thirty feet (30’) to twenty feet (20’) due to safety concerns for City staff during installation and removal.  In motion by Vogel, seconded by Eichmann, Resolution No. 2008-103 entitled “Resolution Modifying Specifications For Highway Banners“ was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2008-103 is contained in the City Administrator’s book entitled Council Resolutions 16.

 

Business Subsidy Request:  N & D of St. Peter, LLC (MGM Liquor Warehouse) –  Community Development Director Wille presented the Economic Development Authority (EDA) recommendation for approval of a business subsidy (revolving loan) in the amount of $135,500 to N & D of St. Peter LLC, the real estate holding company owned by MGM Liquor Warehouse owners Raymond and Gregory Dembouski, which would be amortized over thirty years with a balloon payment at five years.  Wille indicated the loan would be at three percent interest and would be collateralized by personal guarantees from the applicants and their spouses, and a mortgage on the property.  Wille also pointed out that the project would include removal or demolition of the house directly to the west of the business and the applicants had not been able to find someone who would relocate the house.  Wille indicated neither local house movers nor Habitat for Humanity were interested in the house and the plumbing and electrical systems in the home were not up to code and would have to be improved if the house were relocated in Saint Peter.   Councilmember Kvamme, who is also a member of the EDA, indicated the original application was for $98,000 and the additional funds were recommended by the EDA to assist the applicant with moving the house somewhere else, costs for filling in the foundation and demolishing the garage on the property.  Wille indicated that was not his understanding of the EDA action and indicated he would listen to the meeting tape to verify.  Councilmember Vogel suggested the action be tabled for two weeks to allow more discussion by Councilmembers.  Councilmembers discussed having the City arrange for moving the house and holding the house for a period of time until the housing market improves.   City Administrator Prafke cautioned against adopting an opened ended resolution when so many issues surrounding the house were still unanswered and suggested a two week delay should not adversely impact the developers project.  Mayor Strand pointed out that the house issue was not addressed in the resolution before the Council.

 

Raymond Dembouski, owner of MGM Liquor Warehouse and half owner of N & D of St. Peter, LLC, addressed the Council to report he had been unable to find anyone interested in moving the house and it would cost $10,000-12,000 to put the house up on wheels for a move and up to $5,000 a mile if it was actually moved.  Mr. Dembouski indicated they could wait two weeks for City Council action on their loan request.  Gregory Dembouski, half-owner of N & D of St. Peter, LLC, expressed concern that a two week delay meant higher costs for supplies and indicated they had yet to order the building.  Councilmember Pfeifer indicated he was opposed to holding up the developers after the City had already imposed design restrictions on them.  Mayor Strand expressed his belief that no one on the Council had expressed opposition to the revolving loan request.  A motion was made by Vogel, seconded by Kvamme, to table action on the requested subsidy for two weeks to allow for additional discussion by the City Council.  With Councilmembers Vogel, Eichmann, and Kvamme voting aye, Councilmembers Pfeifer and Wetherill voting nay, the motion carried and action was tabled for two weeks.  Raymond Dembouski then asked the Council for a “straw poll” regarding how they would likely vote on the revolving loan request.  City Administrator Prafke cautioned the Council against acting on a request for a straw vote on an action which may be interpreted as providing an assurance and no further action was taken on the agenda item.

 

Medical Office Building Project Authorization