City Council Meeting Minutes - August 26, 2013

Date: 
August 26, 2013

MINUTES OF THE CITY COUNCIL MEETING

AUGUST 26, 2013

 

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 26, 2013.

A quorum present, Mayor Strand called the meeting to order at 7:04 p.m.  The following members were present:  Councilmembers Zieman, Pfeifer, Kvamme, Eichmann, Brand, Carlin 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 Brand, to approve the agenda.  With all in favor, the motion carried. 

Approval of Minutes – A motion was made by Carlin, seconded by Zieman, to approve the minutes of the August 12, 2013 regular City Council meeting.  With all in favor, the motion carried and the minutes were approved.  A complete copy of the minutes of the August 12, 2013 regular City Council meeting is contained in the City Administrator’s book entitled Council Proceedings 18. 

Consent Agenda – Mayor Strand reviewed the consent agenda items and asked for changes to the list of election judges which had been recommended by staff.  In motion by Kvamme, seconded by Eichmann, Resolution No. 2013-118 entitled “Resolution Approving Consent Agenda“ was introduced with the requested changes.  Upon roll call, with all in favor, the modified Resolution was declared passed and adopted.  A complete copy of Resolution No. 2013-118 is contained in the City Administrator’s book entitled Council Resolutions 19.

Hospital CEO Recommendation Concurrence – River's Edge Hospital and Clinic Human Resources Director Jackie Kimmet appeared on behalf of the Hospital Commission to seek the Council’s concurrence with the appointment of George Rohrich to the position of Chief Executive Officer.   Kimmet noted the proposed contract included a salary of $155,000; term through December of 2015; three month without cause termination clause; and paid benefits at a higher level than those provided to other Hospital employees.  Councilmember Zieman questioned the benefits level being provided.  Kimmet indicated the benefits were at a higher accrual level than other employees and Rohrich would be provided with ten (10) paid time off days from the start.  Kimmet also reported current CEO Colleen Spike would have a two week overlap period with Rohrich before ending her employment.  City Administrator Prafke also noted that the contract would be modified to change the location of jurisdiction for any legal action arising from the contract to Nicollet County District Court rather than Ramsey County.  In motion by Kvamme, seconded by Eichmann, Resolution No. 2013-119 entitled “Resolution Providing Concurrence With Hospital Commission Recommendation On Hire And Employment Agreement For New Hospital CEO”, was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2013-119 is contained in the City Administrator’s book entitled Council Resolutions 19. 

Revolving Loan Settlement Agreement:  Hunter Hardwoods – Community Development Director Wille presented the Economic Development Authority (EDA) recommendation to modify the terms of two revolving loans provided to Greg and Neysa Schettler previously doing business as Hunter Hardwood.  Wille indicated the economic downturn resulted in the closing of the Schettler’s business and the first position mortgage holder, First National Bank, had sold off all assets of the company without being able to satisfy the bank’s debt.  Wille reported the Schettler’s had relocated to North Dakota, were currently unemployed and were unable to make the monthly loan payments.  Wille also reported the EDA was recommending the loan terms be modified to combine the remaining balance of $51,838.77 into one account, provide for zero percent (0%) interest, a monthly payment of $50, and another review of the terms in twenty-four (24) months.  Wille also said the Schettler’s had agreed to extend the filing date for the Summons and Complaint to October 1, 2015.  Councilmember Zieman questioned what the City was gaining by agreeing to terms that would only repay $600 per year and questioned whether there were other options available to collect the debt as he didn’t think anyone was trying very hard to recover the loan funds. City Attorney Brandt indicated that collecting on a debt when the debtors lived in another state was difficult and staff would first have to discover what assets the debtors had and then ask for a judgment against that property.  Brandt noted the City Council would need to take action to file a judgment against the Schettler’s and that any assets would be used to recover the debt.  Councilmember Kvamme and others noted that if the City pushed for repayment under the original terms, it would simply be pushing the Schettler’s into bankruptcy under which the City would have the same status as other creditors which would likely mean the City ends up with nothing.

In motion by Eichmann, seconded by Kvamme, Resolution No. 2013-120 entitled “Resolution Modifying Terms And Repayment Schedule For Two Revolving Loans Previously Made To Greg And Neysa Schettler (Formerly DBA Hunter Hardwood)”, was introduced.  Upon roll call, Councilmembers Carlin, Eichmann, Kvamme, Pfeifer, Zieman and Mayor Strand voting aye, Councilmember Brand voting nay, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2013-120 is contained in the City Administrator’s book entitled Council Resolutions 19. 

2014 Transit Grant Application – City Administrator Prafke recommended authorization be provided for submission of grant applications to the State of Minnesota for operation of the City’s transit system in 2014 and for purchase of a new bus.  Prafke also pointed out that the resolution also included a provision for approval of the City’s Title VI plan, procedures and forms.  In motion by Pfeifer, seconded by Brand, Resolution No. 2013-121 entitled “Resolution Authorizing Submission Of Transit System Operation And Capital Grant Applications For 2014 And Approval Of Title VI Transit Plan”, was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2013-121 is contained in the City Administrator’s book entitled Council Resolutions 19. 

Unbudgeted Purchase:  Meter Reading Vehicles – City Administrator Prafke requested approval for the unbudgeted purchase of two 2008 Chevrolet Impala vehicles that will replace two Ford Crown Victoria cars that were rotated to the Finance Department from the Police Department and which are in unsafe condition.  Prafke indicated the vehicles were purchased from the State of Minnesota Department of Administration online auction, were previously State fleet vehicles and are considered by staff to be good buys in part because of the extensive maintenance records that are provided with the cars.  Councilmember Brand questioned whether the price shown in the resolution included tax and license fees.  Prafke indicated those costs would be extra.  In motion by Pfeifer, seconded by Carlin, Resolution No. 2013-122 entitled “Resolution Authorizing Unbudgeted Purchase Of Two 2008 Four-Door Chevrolet Impala LS Vehicles”, was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2013-122 is contained in the City Administrator’s book entitled Council Resolutions 19. 

Handicap Accessibility Micro-Loan Program –  Community Development Director Wille presented the Economic Development Authority’s recommendation for establishment of a micro-loan program that would be available to property owners in the central business district to finance physical alterations and signage to make their property more handicap accessible.  Wille indicated the program would work similar to the construction micro-loan program established during the Highway 169 project and would be available in amounts up to $4,000 at 0% interest with payback at $100 per month.  Wille indicated the loans would be approved by staff under the loan guidelines established by the EDA and would be secured by personal guarantees and promissory notes.  Wille also reported the intent of the program was not to provide funding for the owners to meet American’s With Disabilities Act standards, but rather to simply increase accessibility.  Finally, Wille reported the alterations would still be required to undergo Heritage Preservation Commission review and be subject to compliance with building permit and code requirements.  Councilmember Carlin questioned whether there was an established budget for the program.  Wille indicated there was no budget per se, but only 6-8 applications are expected as some buildings simply are not able to be made more accessible.  In motion by Carlin, seconded by Eichmann, Resolution No. 2013-123 entitled “Resolution Establishing Handicapped Accessibility Micro-Loan Program”, was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2013-123 is contained in the City Administrator’s book entitled Council Resolutions 19. 

Councilmember Brand encouraged all businesses to make accessibility improvements and for eligible property owners to use the micro-loan funding source.

New Business License Applications – City Administrator Prafke recommended approval of two temporary soft drink license applications and a six month peddlers permit.  In motion by Carlin, seconded by Pfeifer, Resolution No. 2013-124 entitled “Resolution Approving New Business License Applications”, was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2013-124 is contained in the City Administrator’s book entitled Council Resolutions 19. 

Reports

Mayor’s Reports – Mayor Strand reported on his recent activities which included attending the Chamber of Commerce business after hours picnic in Levee Park and a Rotary meeting.

League of Minnesota Cities Regional Meetings – City Administrator Prafke encouraged Councilmembers interested in attending one of the League of Minnesota Cities regional meetings to contact his office.

School Safety – City Administrator Prafke reminded all residents to use extra caution as school begins next week.

Councilmember Zieman questioned whether anyone else on the Council had received complaints about the noise from an outdoor event at the Red Men Club on August 17th.  City Administrator Prafke indicated he had also received complaints and the Red Men Club would be contacted and informed of the need to adhere to the rule to stop outside music by the appropriate time.

Councilmember Carlin reported a delegation from Petatlan, Mexico, (Saint Peter’s “sister city”), was in Saint Peter and very much enjoyed their visit including a boat ride for their first ever experience on a fresh water lake.

There being no further business, a motion was made by Pfeifer, seconded by Brand, to adjourn.  With all in favor, the motion carried and the meeting adjourned at 7:51 p.m.