City Council Meeting Minutes of April 13, 2015

Date: 
April 13, 2015

 

MINUTES OF THE CITY COUNCIL MEETING

APRIL 13, 2015

 

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 April 13, 2015.

A quorum present, Mayor pro tem Zieman called the meeting to order at 7:00 p.m.  The following members were present:  Councilmembers Zieman, Parras, Carlin, Brand and Kvamme.  Absent were Councilmember Grams and Mayor Strand.  The following officials were present: City Administrator Prafke, City Attorney Brandt, and City Engineer Loose.

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

Approval of Minutes – A motion was made by Carlin, seconded by Parras, to approve the minutes of the March 23, 2015 regular City Council meeting.  With all in favor, the motion carried and the minutes were approved.  A complete copy of the minutes of the March 23, 2015 regular City Council meeting is contained in the City Administrator’s book entitled Council Proceedings 19.

A motion was made by Parras, seconded by Carlin, to approve the minutes of the April 7, 2015 Board of Appeal and Equalization meeting.  With all in favor, the motion carried and the minutes were approved.  A complete copy of the minutes of the April 7, 2015 Board of Appeal and Equalization meeting is contained in the City Administrator’s book entitled Council Proceedings 19.

Consent Agenda – In motion by Kvamme, seconded by Brand, Resolution No. 2015-43 entitled “Resolution Approving Consent Agenda“ was introduced with the addition of appointments to the Hospital Commission and Parks Board and an additional seasonal Lifeguard appointment.  With all in favor, the Resolution was declared passed and adopted as modified.  A complete copy of Resolution No. 2015-43 is contained in the City Administrator’s book entitled Council Resolutions 20.

Revolving Loan Modification Request:  Mary’s Flowers – Community Development Director Wille presented the Economic Development Authority (EDA) recommendation for approval of a request to extend the balloon payment date for a revolving loan provided to Preston and Mary Smith (d.b.a. Mary’s Flowers) until April 1, 2020.  Wille stated all payments have been made on time and in full and there would be no further changes to the terms of the loan.  Councilmember Brand asked what percentage of loan recipients who seek extensions of the balloon payment were turned down by a bank.  Wille pointed out that EDA loan guidelines require anyone seeking extension of the balloon date to provide proof that their bank would not provide financing for the balloon payment.  In motion by Kvamme, seconded by Parras, Resolution No. 2015-44 entitled “Resolution Extending The Due Date Of The Mary’s Flowers Revolving Loan Balloon Date By Sixty (60) Months”, was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2015-44 is contained in the City Administrator’s book entitled Council Resolutions 20. 

Revolving Loan Modification Request:  St. Peter Community Child Care – Community Development Director Wille presented the Economic Development Authority recommendation to approve a request from St. Peter Community Child Care for a fourth extension to the balloon payment date on their revolving loan.  Wille noted the EDA was recommending approval for a twenty-four (24) month extension to April 1, 2017 with the stipulation that the monthly loan payments would increase to $300 per month.  Councilmember Parras questioned whether increasing the monthly loan payment would jeopardize the ability of the business to make lease payments to the City.  City Administrator Prafke indicated that the increase in loan payment would not make the lease payment situation any worse. In motion by Kvamme, seconded by Parras, Resolution No. 2015-45 entitled “Resolution Providing Balloon Payment Extension For Loan Previously Provided To St. Peter Community Childcare Center”, was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2015-45 is contained in the City Administrator’s book entitled Council Resolutions 20.

Revolving Loan Modification Request:  Tanis Brothers – Community Development Director Wille presented the Economic Development Authority recommendation for approval of a request to subordinate the City’s mortgage on a revolving loan made to Tanis Brothers LLC to a new $14,000 loan from Nicollet County Bank.  Wille indicated the City’s mortgage would be in third position for a total of $203,012 in mortgages on the property which just appraised for $255,000 and the additional bank loan was to cover cost overruns in the remodeling of the property.  In motion by Kvamme, seconded by Carlin, Resolution No. 2015-46 entitled “Resolution Accepting Subordination Of City’s Tanis Brothers, LLC Mortgage To New Loan And Mortgage To Be Provided By Nicollet County Bank”, was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2015-46 is contained in the City Administrator’s book entitled Council Resolutions 20. 

430 Ritt Street Property Temporary Lease – Community Development Director Wille requested approval of a short term (bridge) lease with Marv Kottke for the City owned property at 430 Ritt Street.  Wille noted Mr. Kottke had executed a purchase agreement on the property with closing expected to occur by July 31, 2015, but Kottke had requested use of the property to store snow plowing equipment.  Wille noted the terms of the lease drafted by the City Attorney included a $1.00 rent payment; prohibition against storage of any chemicals, fertilizer or other flammable materials in the building during the lease term; and a provision that if the sale of the building was not consummated, the City would keep the $5,000 earnest money in lieu of rent paid.  Councilmember Parras expressed his belief that the lease should have required Mr. Kottke to pay the City Attorney’s costs for preparation of the lease and require a security deposit.  Councilmember Kvamme questioned why the lease document didn’t specify the amount of the earnest money.  In motion by Kvamme, seconded by Brand, Resolution No. 2015-47 entitled “Resolution Authorizing Execution Of Short Term Lease Of 430 Ritt Street Property With Marv Kottke”, was introduced contingent upon changes being made to the lease document to specify the amount of the earnest money ($5,000) that will be withheld by the City as payment in lieu of rent should the sale of the property not take place.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2015-47 is contained in the City Administrator’s book entitled Council Resolutions 20.  Councilmember Kvamme congratulated Community Development Director Wille on his efforts to get the building sold.

T-Mobile Water Tower Lease Amendment – Public Works Director Moulton requested approval of an amendment to the lease with T-Mobile for placement of additional T-Mobile equipment on the City’s water tower which would extend coverage of their cell service.  Moulton also stated the amendment would result in an additional $150 in lease payment to the City.  In motion by Parras, seconded by Carlin, Resolution No. 2015-48 entitled “Resolution Authorizing Execution Of Second Amendment To Existing Lease Agreement With T-Mobile For Lease Of Space On Broadway Water Tower”, was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2015-48 is contained in the City Administrator’s book entitled Council Resolutions 20. 

Request for City Assistance:  Safe Bar Initiative Fun Run – City Administrator Prafke recommended limited approval be provided for a fun run being organized by Patrick’s On Third in support of the Safe Bar Initiative.  Prafke noted that although he had some concerns about the start/end location (intersection of West Park Row/South Third Street) and route for the event (residential areas running on sidewalks), he was recommending approval as outlined in the resolution based on an expected small number of participants.  Councilmember Carlin expressed concerns about safety of the participants as well as volunteers after learning that almost 150 people had signed up for the fun run.  Prafke noted that City staff would be training the volunteers who would control intersections and indicated the organizers had been unwilling to consider alternative sites for the event.  Prafke stated that should the event reach 200 or more participants, the site would not be suitable and would not be allowed in the future.  In motion by Brand, seconded by Parras, Resolution No. 2015-59 entitled “Resolution Approving Request For City Assistance For Safe Bar Initiative Fun Run”, was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2015-49 is contained in the City Administrator’s book entitled Council Resolutions 20. 

Asphalt Materials Purchase – Public Works Director Moulton requested authorization for the purchase of asphalt in an amount up to $100,000 from Southern Minnesota Construction (SMC) and up to $10,000 from W.W. Blacktopping.  Moulton noted that although the proposal submitted by SMC was not the lowest per ton, the City’s cost would be less than purchasing from the other vendors due to staff time and fuel costs for driving to locations which were substantially further from Saint Peter to get the materials.  Moulton also noted that the W.W. Blacktopping purchase was requested in the event the SMC facility was not available.  In motion by Carlin, seconded by Parras, Resolution No. 2015-50 entitled “Resolution Approving Purchase Of Asphalt Patching Materials”, was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2015-50 is contained in the City Administrator’s book entitled Council Resolutions 20. 

Quartzite Stone Purchase –  Public Works Director Moulton requested authorization to accept the proposal from New Ulm Quartzite for quartzite stone to be used for seal coating at an estimated cost of $35,670.  Moulton indicated the New Ulm plant was the only area facility selling the hard stone that is used in place of pea rock for seal coating and the stone is very hard which stands up to plowing and other activities and extends the maintenance life of the roadway.  In motion by Kvamme, seconded by Brand, Resolution No. 2015-51 entitled “Resolution Approving Purchase Of Quartzite Stone”, was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2015-51 is contained in the City Administrator’s book entitled Council Resolutions 20. 

Construction Standard Detail Plate Updates – Public Works Director Moulton requested modifications to the City’s construction standards for lighting, concrete work and stormwater.   In motion by Carlin, seconded by Parras, Resolution No. 2015-52 entitled “Resolution Approving Construction Standard Detail Updates”, was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2015-52 is contained in the City Administrator’s book entitled Council Resolutions 20. 

Reports

“Arbor Day and Arbor Month” Proclamation – Mayor pro tem Zieman reported Mayor Strand had proclaimed April 24, 2015 as “Arbor Day” and May, 2015 as “Arbor Month” in the City.

City/County Meeting Discussion – City Administrator Prafke reported on discussion at the April 9, 2015 City/County meeting which included future improvements on Gardner Road, school planning, stormwater pilot program, and library funding.

There being no further business, a motion was made by Brand, seconded by Parras, to adjourn.  With all in favor, the motion carried and the meeting adjourned at 7:59 p.m.