City Council Minutes of February 8, 2016

Date: 
February 8, 2016

 

MINUTES OF THE CITY COUNCIL MEETING

FEBRUARY 8, 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 February 8, 2016.

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

Approval of Minutes – A motion was made by Kvamme, seconded by Parras, to approve the minutes of the January 25, 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 January 25, 2016 regular City Council meeting is contained in the City Administrator’s book entitled Council Proceedings 19.

Consent Agenda – In motion by Pfeifer, seconded by Parras, Resolution No. 2016-29 entitled, “Resolution Approving Consent Agenda“ was introduced.   With all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2016-29 is contained in the City Administrator’s book entitled Council Resolutions 21.

Revolving Loan Fund Request:  River Rock Bakery & Kitchen, LLC – Community Development Director Wille presented the Economic Development Authority recommendation for approval of a $40,000 revolving loan to Christine Rasmussen, dba River Rock Bakery & Kitchen, LLC., for the start-up of a commercial bakery and catering business.  Wille noted the original loan request had been rejected by the EDA and subsequent to that, River Rock Coffee owner Tamika Bertram had assumed 61.6% of the Bakery debt and the majority of the risk.  Wille noted the loan was being recommended at 3.5% interest, amortized over 10 years with a balloon payment due at five years; and secured by a lien in second position behind a First National Bank claim against fixtures, furnishings, equipment, inventory, accounts receivables and general intangibles.  Wille also noted the recommendation was for further security in the form of a subordinate mortgage against the applicant’s personal residence, personal guarantees by Rasmussen and her spouse, a promissory note and security agreement, and Rasmussen maintaining a life insurance policy naming the City as the beneficiary in an amount at least equal to the balance of the loan. 

Councilmember Pfeifer objected to the City loan of $40,000 being subordinate to the bank loan of $20,000 and expressed his opinion that the “banks are not stepping up where they should be” and the process is “not fair to the people of Saint Peter”.   Mayor Zieman encouraged Pfeifer to work on changing the Economic Development Authority loan guidelines to address his concerns.

Councilmember Parras also indicated his belief that the banks were not accepting much of the risk.  Parras also questioned the status of the revolving loan fund to which Wille indicated over $1,000,000 was on deposit in the revolving loans and the funds were whole.  Wille also pointed out that the equipment securing the loans for both the bank’s $20,000 loan and the City’s $40,000 were valued at $61,500.

In motion by Brand, seconded by Parras, Resolution No. 2016-30 entitled “Resolution Approving $40,000 Revolving Loan To River Rock Bakery & Kitchen, LLC To Partially Finance The Start-Up Of A Commercial Bakery And Catering Business”, was introduced.  Upon roll call, Councilmembers Kvamme, Brand, Parras and Mayor Zieman voting aye, Councilmember Pfeifer voting nay, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2016-30 is contained in the City Administrator’s book entitled Council Resolutions 21. 

2016 Street Maintenance Plan – City Administrator Prafke recommended approval of the 2016 street maintenance program which included seal coating 113 blocks, 8 blocks of full depth asphalt replacement, curb and gutter improvements, sign replacement, materials purchases, sidewalk and handicap access improvements, and crack sealing.  In motion by Pfeifer, seconded by Brand, Resolution No. 2016-31 entitled “Resolution Approving 2016 Street Maintenance Program”, was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2016-31 is contained in the City Administrator’s book entitled Council Resolutions 21. 

City of Nicollet Building Inspection Contract Renewal – City Administrator Prafke and Building Official Busse requested authorization for execution of a renewal contract with the City of Nicollet for building inspection services performed by City of Saint Peter staff.  Prafke noted that the work had been done successfully for many years with little to no impact on services provided in Saint Peter.  In motion by Kvamme, seconded by Parras, Resolution No. 2016-32 entitled “Resolution Approving Execution Of 2016 Contract To Provide Building Inspection Services To The City Of Nicollet”, was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2016-32 is contained in the City Administrator’s book entitled Council Resolutions 21. 

Donation Policy Modifications – City Administrator Prafke recommended adoption of an updated donation acceptance policy.  Prafke noted that the policy had been developed to complement the City’s purchasing policy and a change to the purchasing policy to allow purchases under $7,500 without Council approval had not been incorporated into the donation policy to reflect authorization for staff to accept donations valued at up to $7,500.  Prafke recommended the change in the donation policy and pointed out that the exclusion to that policy which required Council acceptance for all real estate donations regardless of the value, would still be in place.   In motion by Parras, seconded by Brand, Resolution No. 2016-33 entitled “Resolution Approving Modification To The City’s Donation Acceptance Policy”, was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2016-33 is contained in the City Administrator’s book entitled Council Resolutions 21. 

City Assistance Request: “Luck Of The Irish” Fun Run – City Administrator Prafke recommended approval of a request by the John Ireland Catholic School Fun Run organizers for City assistance for their event on March 19th.   In motion by Kvamme, seconded by Parras, Resolution No. 2016-34 entitled “Resolution Approving Request For City Assistance For John Ireland Catholic School ‘Luck Of The Irish’ Fun Run Event”, was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2016-34 is contained in the City Administrator’s book entitled Council Resolutions 21. 

City Council Out-Of-State Travel Request – City Administrator Prafke recommended approval of a resolution authorizing out-of-state travel by Councilmember Parras to attend the American Public Power Association legislative rally and the National League of Cities congressional congress in March in Washington, D.C.  Prafke reminded Councilmembers that Council approval is required under the City’s travel policy and State law.   In motion by Pfeifer, seconded by Brand, Resolution No. 2016-35 entitled “Resolution Authorizing Elected Official Travel”, was introduced.  Upon roll call, Councilmembers Pfeifer, Kvamme, Brand and Mayor Zieman voting aye, Councilmember Parras abstaining, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2016-35 is contained in the City Administrator’s book entitled Council Resolutions 21. 

Reports

Mayor’s Report – Mayor Zieman reported he had attended several community events and Winterfest activities.  Zieman also reminded the Council of the upcoming forum on homelessness sponsored by the League of Women Voters which takes place on February 9th and that February 18th was “St. Peter Day” on KNUJ radio and the radio station would be broadcasting from Jake’s Pizza.

Community Information Distribution – City Administrator Prafke provided a report on the various ways the City provides information to the community on topics such as snow emergency declarations.  Prafke encouraged the public to sign up for the free community notification system used by the City (Nixle), subscribe to the City’s newsletter, like the City on Facebook, and/or check out the City’s website.  Prafke also indicated he and other staff are happy to visit with service organizations and others to provide presentations on the state of the City.

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 7:42 p.m.