City Council Meeting Minutes - June 9, 2014

Date: 
June 9, 2014

 

MINUTES OF THE CITY COUNCIL MEETING

JUNE 9, 2014

 

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, 2014.

A quorum present, Mayor Strand called the meeting to order at 7:02 p.m.  The following members were present:  Councilmembers Grams, Zieman, Kvamme, Brand, and Mayor Strand.  Absent were Councilmembers Parras and Carlin.  The following officials were present: City Administrator Prafke, City Attorney Brandt, and City Engineers Loose and Domras.

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

Approval of Minutes – A motion was made by Zieman, seconded by Brand, to approve the minutes of the May 27, 2014 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, 2014 regular City Council meeting is contained in the City Administrator’s book entitled Council Proceedings 18. 

A motion was made by Kvamme, seconded by Grams, to approve the minutes of the June 2, 2014 special City Council meeting.  With all in favor, the motion carried and the minutes were approved.  A complete copy of the minutes of the June 2, 2014 special City Council meeting is contained in the City Administrator’s book entitled Council Proceedings 18. 

Visitors – Fire Chief Quade introduced three of the six new Firefighters who began duty in January, 2014 including Curtis Thompson, Brianna Thomas, and Charles Rustman.

Mayor Strand presented Certificates of Appreciation to retiring Firefighters Keith Wenner (22 years of service) and Jerry Yushta (30 years of service) and thanked them for their commitment to serving the Saint Peter community.  Mayor Strand also presented a Certificate for retired Firefighter Michael McCarthy who was unable to attend.  Chief Quade and Assistant Chief Neary also presented the retirees with plaques on behalf of the Fire Department and thanked both the Firefighters and their families for their dedication to the Fire Department.

Nicollet House maintenance manager Tom Janni and resident Brett Christiansen addressed the Council to request a variance in parking regulations along the south side of West Park Row to remove the “No parking 2-6 a.m.” restrictions.  Christiansen indicated that it is a hardship for residents to have to move vehicles to comply with the parking restrictions.  City Administrator Prafke asked several questions of the visitors including whether any residents had attempted to rent parking spaces from the owner of the parking lot north of the Nicollet House building or if the Nicollet House building owners had attempted to lease spaces from owners of private lots in the area to use during evening hours when the retail businesses were closed.  Janni indicated they had not done so.  Prafke reported the request could be discussed by the Council at a future workshop.

Consent Agenda – In motion by Kvamme, seconded by Brand, Resolution No. 2014-79 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. 2014-79 is contained in the City Administrator’s book entitled Council Resolutions 20.

Southwest Minnesota Housing Partnership (SWMHP) Resolution of Support – City Administrator Prafke recommended approval be provided for a requested resolution of support for Southwest Minnesota Housing Partnership’s funding application to purchase Maplewood Apartments.  Prafke reminded the Council that the current owners of the building wish to opt out of the Federal 515 housing program that allows the apartments to receive rental assistance and under the program, the building must be sold to a non-profit.  Prafke further noted that the previously reported purchase price of $2.1 million was incorrect and the price was actually $1.2 million.  Prafke also reported over a million dollars in improvements would be put into the building by SWMHP and the second part of the proposed resolution was for the City to serve as grantee for SWMHP’s Small Cities Development Program grant funds application. 

Councilmember Zieman expressed opposition to the proposed resolution.  Zieman questioned the overall price of the project; questioned whether the private sector could take over the building for less money; expressed concerns over the fact that SWMHP owns 15% of the rental property in Saint Peter which he felt was too much for one company; and noted that Senator Kathy Sheran’s husband is the current owner of Maplewood Apartments.  Zieman felt other companies could take over the project for less money and still provide it as low income housing.

In motion by Kvamme, seconded by Brand, Resolution No. 2014-80 entitled “Resolution Supporting Southwest Minnesota Housing Partnership Proposed Maplewood Apartments Project”, was introduced.  Upon roll call, Councilmembers Grams, Kvamme, Brand and Mayor Strand voting aye, Councilmember Zieman voting nay, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2014-80 is contained in the City Administrator’s book entitled Council Resolutions 20. 

Solace Project Support – City Administrator Prafke recommended approval of a resolution of support for the Solace Project which was a housing and services project proposed by a partnership including criminal justice, behavioral and physical health and community resource organizations.  Prafke indicated the proposed resolution also included provisions for the City to enter into a purchase agreement with SWMHP for 4.01 acres of land at 2005 North Sunrise Drive at the previously approved sale price of $1.05 per square foot ($183,417) contingent upon verification of project financing and completion of an approved project design including site design and external architecture. 

George Komaridis of ASC Psychological and Rick Goodemann of SWMHP addressed the Council to provide additional information on the proposed project including that the project would serve homeless women with children who have been chronically disabled by psychological and chemical abuse problems as they re-enter the community.  Komaridis stated the program would be court ordered for local women who have trouble reintegrating into society and the population would not be dangerous, but the program would help them reduce their stressors to aid in their integration back into the community.  Komaridis also noted the services would be funded in part by insurance and the chemical dependency/substance abuse consolidated fund with additional funding from the MFIP and SAMSA programs.

Councilmember Zieman indicated he was supportive of the project, but not of the proposed location in the North Industrial Park and questioned what would happen to the project if the Council failed to provide a resolution of support.  Goodemann indicated that without a resolution of support from the Council, they would not be able to submit an application for funding and the industrial park location was the only area of the City zoned for both housing and service provision in the same building.

Councilmember Grams indicated his support for the concept and reported he had canvassed property owners in the area and they all seemed receptive to the project.

In motion by Brand, seconded by Grams, Resolution No. 2014-81 entitled “Resolution Supporting Southwest Minnesota Housing Partnership Proposed Solace Housing Project”, was introduced.  Upon roll call, Councilmembers Grams, Kvamme, Brand and Mayor Strand voting aye, Councilmember Zieman voting nay, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2014-81 is contained in the City Administrator’s book entitled Council Resolutions 20. 

Revolving Loan Request:  Kaduce/St. Peter Laundry – Community Development Director Wille presented the Economic Development Authority recommendation for approval of a $79,475 (9.8% of the gross financing) revolving loan to Megan and Larry Kaduce to partially finance the rehabilitation and renovation of 209 West Mulberry Street to create a self-service laundry facility.   Wille indicated the loan would be at a three percent (3%) rate of interest, will be amortized over 15 years, and would have a balloon payment due at 10 years.  Wille reviewed the loan guarantees and securities, the applicant’s financial contribution to the project costs, as well as the mortgages from two banks.  Councilmember Grams indicated the Heritage Preservation Commission was supportive of the proposed building exterior modifications and signage.  In motion by Grams, seconded by Brand, Resolution No. 2014-82 entitled “Resolution Approving A $79,475 Revolving Loan To Larry And Megan Kaduce To Partially Finance The Renovation And Rehabilitation Of A Commercial Structure Located At 209 West Mulberry Street”, was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2014-82 is contained in the City Administrator’s book entitled Council Resolutions 20. 

Hospital Equipment Purchase Requests – River's Edge Hospital and Clinic CEO George Rohrich addressed the Council to request purchase of surgical equipment that will allow more surgeries to take place at the Hospital each day.  Rohrich requested authorization for purchase of surgical sterilization equipment that will increase sterilization capabilities from thirty (30) pounds of equipment every two (2) hours to three hundred (300) pounds.  Rohrich requested approval for the purchase of sterilization equipment in the amount of $329,446.20 from Steris Corporation and $70,500 in plumbing, electrical and architectural modifications to the Hospital to accommodate the equipment.  Rohrich indicated the expenditures would be financed by Hospital operations funds with a return on investment expected in one year.  In motion by Zieman, seconded by Grams, Resolution No. 2014-83 entitled “Resolution Approving Purchase Of Sterilization Equipment For River's Edge Hospital And Clinic”, was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2014-83 is contained in the City Administrator’s book entitled Council Resolutions 20. 

Rohrich also requested authorization to purchase a $16,000 surgical waste disposal system from Stryker to be used in the second operating room which would also allow an increased number of surgeries to be performed at the Hospital each day.  Rohrich indicated the purchase would be funded by Hospital operations funds.  In motion by Grams, seconded by Zieman, Resolution No. 2014-84 entitled “Resolution Approving Purchase Of Operating Room Waste Disposal System For River's Edge Hospital And Clinic”, was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2014-84 is contained in the City Administrator’s book entitled Council Resolutions 20. 

Washington Avenue Link Project Phase 2 Change Order No. 1 – Public Works Director Giesking requested approval for a Change Order to the Washington Avenue Link Project (Phase 2) contract in the amount of $32,008.  Giesking noted the change order was necessary due to poor subsoil which required additional work ($26,650); the need for additional grading at Ramsey Park ($4,600) and the need to replace a fire hydrant at the intersection of Howard and Charles Streets ($750).  In motion by Grams, seconded by Brand, Resolution No. 2014-85 entitled “Resolution Authorizing Change Order Number One For The Washington Avenue Link Project Phase 2 Improvements”, was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2014-85 is contained in the City Administrator’s book entitled Council Resolutions 20. 

Public Works Replacement Vehicle Purchase – Public Works Director Giesking requested approval for the purchase of a 2014 Ram one ton 4x4 service truck with utility box, lift gate and crane to be used by the City’s Mechanic.  Giesking recommended the purchase be made at the State bid price from Lager’s Inc. (with accessories from Towmaster) in the total amount of $64,627.49.  Giesking stated the purchase would result in higher productivity from the Mechanic.  In motion by Grams, seconded by Kvamme, Resolution No. 2014-86 entitled “Resolution Authorizing Budgeted Purchase Of A Ram One Ton Truck”, was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2014-86 is contained in the City Administrator’s book entitled Council Resolutions 20. 

2014 Crack Seal Project Bid Award – Public Works Director Giesking recommended award of the bid for the 2014 Crack Sealing Project to American Pavement Solutions in the amount of $1.44 per gallon up to a maximum of $60,000.  In motion by Kvamme, seconded by Grams, Resolution No. 2014-87 entitled “Resolution Awarding Bid For 2014 Crack Sealing Project”, was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2014-87 is contained in the City Administrator’s book entitled Council Resolutions 20. 

2014 Seal Coating Project Bid Award – Public Works Director Giesking recommended award of the bid for the 2014 Seal Coating Project to second low bidder Caldwell Asphalt in the amount of $2.91 per gallon to a maximum of $121,000.  Giesking indicated the low bidder, Astech Corporation, had refused to honor their bid and City Administrator Prafke had contacted Astech and indicated the City would retain Astech’s 5% bid security ($2,790.81) based on that failure.  Giesking indicated a cashier’s check had been provided by Astech in lieu of enforcing the bond submitted with their bid documents.  A motion was made by Kvamme to approve a modified Resolution No. 2014-88 entitled “Resolution Awarding Bid For 2014 Seal Coating Project” that would authorize using the forfeited bid security from Astech to add to the project budget.  The motion was seconded by Councilmember Brand.

A motion was made by Councilmember Grams to further amend the resolution to direct the use of additional monies from General Fund reserves to fully fund seal coating on the budgeted number of 110 blocks of roadway at the expected cost of $129,940.23.  The motion died for lack of a second.

Upon roll call of the original motion, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2014-88 is contained in the City Administrator’s book entitled Council Resolutions 20. 

MSA4 Project – Public Works Director Giesking requested authorization for Bolton and Menk, Inc. to provide assistance to staff in developing a plan for ensuring the City’s continued compliance with the MSA4 permit for a not to exceed fee of $26,600.  Water Utilities Superintendent Moulton indicated the main portion of the work would be developing additional Code language that would allow for more strict enforcement action for violations of stormwater requirements.   Councilmember Brand questioned whether additional staff will be necessary in the future to enforce the new regulations.  Moulton indicated that Stormwater staff is currently doing the enforcement and would continue to do so. City Administrator Prafke reported that the projected cost of this work was higher than what has been budgeted so the cost would be funded by a combination of budgeted and reserve funds.  In motion by Zieman, seconded by Grams, Resolution No. 2014-89 entitled “Resolution Authorizing Bolton And Menk, Inc. Assistance In Revising The Current Municipal Separate Storm Sewer System (MS4)”, was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2014-89 is contained in the City Administrator’s book entitled Council Resolutions 20. 

City Assistance Request:  Livestock – City Administrator Prafke recommended approval of a request for City assistance submitted by the organizers of the June 21st Livestock event in Minnesota Square Park.  Prafke noted that no assistance would be provided for the 5K run.  In motion by Zieman, seconded by Brand, Resolution No. 2014-90 entitled “Resolution Approving Request For City Assistance For Livestock Event”, was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2014-90 is contained in the City Administrator’s book entitled Council Resolutions 20. 

Reports

Mayor’s Report – Mayor Strand reported on his recent activities which included Region Nine Development Commission budget meetings. 

SMMPA Update – Public Works Director Giesking reported that improvements have been finished at the Sherco 3 power plant and the plant was placed online again in January.  Giesking indicated that upgrades have resulted in the plant having an increased output capacity of 4.7% with no corresponding increase in fuel use.  Giesking also reported that SMMPA’s share of the total project cost was $15.87 million.

City/County Meeting Schedule – City Administrator Prafke reminded Councilmembers of the City/County meeting scheduled for June 11th at 3:30 p.m.  Prafke noted the meeting would be held at the Nicollet County Government Center.

Councilmember Zieman asked if the jake braking complaint brought forth at the last Council meeting had been addressed or investigated by staff.  City Administrator Prafke reported the existing regulations were being enforced with increased police presence in the area and several tickets had been written.  Prafke also noted staff was working with the Minnesota Department of Transportation to replace the regulatory sign.

There being no further business, a motion was made by Brand, seconded by Grams, to adjourn.  With all in favor, the motion carried and the meeting adjourned at 9:16 p.m.