City Council Minutes of April 25, 2016

Date: 
April 25, 2016

 MINUTES OF THE CITY COUNCIL MEETING

APRIL 25, 2016

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 25, 2016.

A quorum present, Mayor Zieman called the meeting to order at 7:00 p.m.  The following members were present:  Councilmembers Grams, Pfeifer, Parras, and Mayor Zieman.  Absent were Councilmembers Kvamme, Brand, and Carlin.  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 Parras, to approve the agenda.  With all in favor, the motion carried.

Approval of Minutes – A motion was made by Parras, seconded by Pfeifer, to approve the minutes of the April 11, 2016 regular City Council meeting.   With all in favor, the motion carried and the minutes were approved.  A complete copy of the minutes of the April 11, 2016 regular City Council meeting is contained in the City Administrator’s book entitled Council Proceedings 19.

Consent Agenda – In motion by Grams, seconded by Parras, Resolution No. 2016-69 entitled, “Resolution Approving Consent Agenda“, was introduced.  A complete copy of Resolution No. 2016-69 is contained in the City Administrator’s book entitled Council Resolutions 21.

Housing Tax Increment Financing Bonds Sale Authorization –  Shannon Sweeney of David Drown Associates recommended receipt of competitive negotiated bids for the sale of $2,405,000 in general obligation Tax Increment Financing bonds to be used for funding infrastructure improvements in Traverse Green Subdivision.  Sweeney noted the recommendation was to sell the bonds with a term of twenty years, callable on February 1, 2020, and to purchase a credit rating from Standard and Poor’s.   Sweeney noted that if the lot sales are brisk having the earlier than normal call date would allow the City to buy down the principal which would save more money and the bonds could be paid off earlier.  Sweeney estimated the projected net effective rate of the bonds would be 3.27% and he recommended the sale date be set for June 13, 2016.  Councilmember Parras questioned the need for purchasing a credit rating on the issuance and Sweeney indicated the savings would be in the “tens of thousands of dollars” versus the $13,000 purchase price.  In motion by Pfeifer, seconded by Grams, Resolution No. 2016-70 entitled “Resolution Providing For The Competitive Negotiated Sale Of $2,405,000 General Obligation Tax Increment Bonds, Series 2016a”, was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2016-70 is contained in the City Administrator’s book entitled Council Resolutions 21. 

2016 Electric Budget – City Administrator Prafke reported SMMPA had increased energy, transmission/kva, and demand charge rates to the City and after extensive discussion at previous Council workshops, staff was recommending adoption of the 2016 Electric Fund budget as well as an increase in electric rates to be effective with use on May 1st.  Prafke provided extensive background information on the status of the Electric Fund budget and indicated the increase in energy costs amounted to $392,000.  Prafke reported staff was expecting similar increases from SMMPA in 2017 and 2018.  Prafke noted that while the City does have a fund balance that could finance the increases, the unrestricted fund balance had already dropped from $965,000 in 2015 to $682,000 and use of the reserves to finance the rate increases would be limited.  Prafke reviewed three options for increasing rates and indicated the Council had expressed a desire to follow the option that would provide increases for energy, transmission and demand charges which would assign the increases in the same category that SMMPA raised rates in and would utilize $184,000 in reserve funds.  Councilmembers expressed displeasure at the need to raise rates and were provided information on the expected increase to different types and sizes of user’s utility bills.  In motion by Parras, seconded by Grams, Resolution No. 2016-71 entitled “Resolution Adopting 2016 Electric Enterprise Fund Budget”, was introduced with a total Electric Fund budget of $12,203,530.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2016-71 is contained in the City Administrator’s book entitled Council Resolutions 21. 

2016 Electric Rate Modification –  In motion by Grams, seconded by Pfeifer, Resolution No. 2016-72 entitled “Resolution Adopting Electric Rates”, was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2016-72 is contained in the City Administrator’s book entitled Council Resolutions 21. 

Traverse Green Subdivision Sales Policy – Community Development Director Wille requested approval of the sales plan and policies for sale of lots in Traverse Green Subdivision.  Wille noted the plan was similar to that used for sale of lots in Nicollet Meadows and Washington Terrace Subdivisions.  In motion by Pfeifer, seconded by Grams, Resolution No. 2016-73 entitled “Resolution Adopting Sales Plan And Policies Regulating The Sale Of Lots Within Traverse Green Subdivision”, was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2016-73 is contained in the City Administrator’s book entitled Council Resolutions 21. 

Traverse Green Subdivision Covenants – Community Development Director Wille requested approval of the restrictive covenants in Traverse Green Subdivision which were similar to the covenants in both Nicollet Meadows and Traverse Green Subdivisions.  Wille also recommended that changes be made to the covenants shown in the Council packet to modify Item #12 to be “…has a total gross floor area of less than 900 square feet” and in Item #17 to add the sentence, “Such construction shall be undertaken in a manner consistent with Utility Standard Detail Plates #7020A and #7020R as adopted by the City Council”.  Wille indicated the covenants would establish the minimum standard of development in the subdivision and set the “tone” for the neighborhood.  In motion by Parras, seconded by Grams, Resolution No. 2016-74 entitled “Resolution Adopting Restrictive Covenants Regulating The Development Of Single Family Homes In Traverse Green Subdivision”, was introduced with the suggested changes to #12 and #17.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2016-74 is contained in the City Administrator’s book entitled Council Resolutions 21. 

School District #508 Memorandum of Understanding – City Administrator Prafke recommended approval be provided for execution of a memorandum of understanding between the City and School District #508 for the City to provide programs that were originally offered by Community Education.  Prafke noted the School District was no longer in a position to provide the programming due to funding cutbacks, but the City could provide the programs at lesser cost and would be reimbursed by the District in the amount of $10,200.   Prafke provided a note of caution that should the District stop funding the programs, the City would be put in a position of deciding whether to continue offering the programs at City cost or to end programs that most residents believe are City programs.  Councilmember Parras expressed his belief that he wasn’t interested in taking on more of the financing load for District programs.  In motion by Grams, seconded by Parras, Resolution No. 2016-75 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. 2016-75 is contained in the City Administrator’s book entitled Council Resolutions 21. 

Community Center Lease Request For Proposal Issuance – City Administrator Prafke indicated that while the City hadn’t received formal notice yet, staff expected the Early Childhood Family Education (ECFE) space in the Community Center would become vacant during the summer of 2017 when ECFE is relocated to the Lincoln Drive school building.  Prafke recommended that a request for proposals for lease of the space be issued to provide time for prospective tenants to make the move and for the Council to adequately review any proposals that were received to determine whether the Council’s goals for tenancy in the building had been met.  Prafke noted that both of the current daycare tenants in the building had expressed interest in lease of the space.  In motion by Pfeifer, seconded by Grams, Resolution No. 2016-76 entitled “Resolution Authorizing Release Of Request For Proposals For Lease Of Space In The Community Center”, was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2016-76 is contained in the City Administrator’s book entitled Council Resolutions 21. 

Solicitation of Bids – 2016 Equipment Certificate – City Administrator Prafke recommended that bids be solicited for issuance of $365,000 in equipment certificates.  Prafke noted that getting the bids did not authorize purchase of the items included in the equipment certificate budget and that the expected debt for the five year issuance would be $80,000.  Councilmember Parras expressed concerns about the proposed purchase of body cameras for the Police Department and indicated he would be opposed to such purchase due to privacy issues that have yet to be addressed by the State legislature.  Prafke noted that having the funding level included in the budget served as a place holder and if the purchase wasn’t made, the funds would be used to repay the debt.  In motion by Grams, seconded by Pfeifer, Resolution No. 2016-77 entitled “Resolution Authorizing Solicitation Of Bids For $365,000 In Equipment Certificates”, was introduced.  A motion was made by Parras to remove the funding for the body cameras and to reduce the amount of the issuance.  The motion died for lack of a second.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2016-77 is contained in the City Administrator’s book entitled Council Resolutions 21. 

Reports

“Arbor Day/Month” Proclamation –  Mayor Zieman proclaimed April 29th as “Arbor Day” and May, 2016 as “Arbor Month” in the community.

Parks Opening – City Administrator Prafke and Public Works Director Moulton reported the City’s parks had officially been opened earlier than the normal May 1st start date.

There being no further business, a motion was made by Pfeifer, seconded by Parras, to adjourn.  With all in favor, the motion carried and the meeting adjourned at 8:29 p.m.