Minutes of the February 13, 2012 City Council Meeting

Date: 
February 13, 2012

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 13, 2012.

A quorum present, Mayor Strand called the meeting to order at 6:58 p.m.  The following members were present:  Councilmembers Pfeifer, Eichmann, Carlin, Kvamme, Brand, Zieman, and Mayor Strand.  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 Eichmann, to approve the agenda as modified.  With all in favor, the motion carried. 

Approval of Minutes – A motion was made by Brand, seconded by Carlin, to approve the minutes of the January 23, 2012 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 23, 2012 regular City Council meeting is contained in the City Administrator’s book entitled Council Proceedings 18.

Consent Agenda – In motion by Kvamme, seconded by Eichmann, Resolution No. 2012-12 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. 2012-12 is contained in the City Administrator’s book entitled Council Resolutions 18. 

2012 Fee Schedule Modification – City Administrator Prafke recommended some slight modifications to the 2012 fee schedule which were inadvertently omitted from the resolution in January.  In motion by Carlin, seconded by Zieman, Resolution No. 2012-13 entitled “Resolution Establishing Year 2012 License Fees, Permit Fees, And Other Charges For Municipal Services“, was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2012-13 is contained in the City Administrator’s book entitled Council Resolutions 18. 

Hospital Phone System Purchase –  River's Edge Hospital and Clinic CFO Curt Savstrom addressed the Council to request authorization to purchase an NEC SV8300 phone system from Loffler Companies in the amount of $42,635.  Savstrom indicated the Hospital’s phone system would no longer have software support from NEC and the Hospital had worked with City staff to receive proposals for a new phone system. Savstrom indicated the Hospital would be able to re-use existing handsets and the new system would provide current technology with the ability to expand in the future.  Savstrom also noted the system would be funded with depreciation funds and would have a ten year depreciable life.  Councilmember Zieman asked if the purchase was budgeted and Savstrom indicated in the affirmative. In motion by Pfeifer, seconded by Eichmann, Resolution No. 2012-14 entitled “Resolution Approving Purchase Of NEC Univerge SV8300 Telephone System By 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. 2012-14 is contained in the City Administrator’s book entitled Council Resolutions 18. 

Greenhill Reservoir Rehabilitation Project Bid Award – Public Works Director Giesking recommended awarding the bid for the Greenhill Reservoir Rehabilitation Project to Classic Protective Coatings in the amount of $671,436.  Giesking reviewed the “best value contracting” process that was used to make the recommendation for award of the bid and indicated that the process began with each contractor submitting their qualifications to perform the work one week prior to the bid opening.  The qualifications were then ranked by a panel to determine the contractor’s total weighted score.  Giesking indicated the members of the panel included a Bolton and Menk, Inc. engineer, a Bolton and Menk, Inc. contract inspector who will work on the project and three City staff members.  Giesking reported the criteria used for the qualification evaluation included timeliness of completing past contracts, qualifications of the key people who would be involved in the project, the contractor’s experience with a project of similar size, technical abilities of the contractor in working with the special paint materials, and references.  Water Superintendent Moulton reported two contractors scored substantially higher than the other contractors and the total weighted score for each contractor was then combined with the bids submitted to achieve the final ranking of contractors.  Moulton stated that although TMI Coatings, Inc. had submitted the lowest dollar bid, the ranked evaluations resulted in a recommendation to award the bid to Classic Protective Coatings as the “best value” for the project.  City Administrator Prafke noted that the best value contracting process, which is allowed for under State law, was used for this contract due to the technical nature of the materials being used and the fact that this project is expected to last 25-30 years.  Prafke also noted that the Bolton and Menk, Inc. Engineer involved in the evaluation was certified in the Best Value process.

In motion by Carlin, seconded by Zieman, Resolution No. 2012-15 entitled “Resolution Awarding Bid For Greenhill Reservoir Refurbishing Project“, was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2012-15 is contained in the City Administrator’s book entitled Council Resolutions 18. 

Revolving Loan Extension Request:  Volk Electric – Community Development Director Wille presented the Economic Development Authority (EDA) recommendation to approve a request by Brian Grey d.b.a. Volk Electric, for a twenty-four (24) month extension of the balloon payment date for his two revolving loans.  Wille reported that Grey had received two revolving loans from the City in 1999 (one at 6% interest and the other at 3% interest), and had made all payments in a timely manner until September 1, 2011.  Wille also noted that Mr. Grey had already asked for and received a 24 month extension on the loans in 2009 and in 2011 his business was put into receivership and his assets were sold which left the City with no collateral on his loans except for his personal guarantee.  Wille pointed out that since the last payment received in 2011, the balance due on the loans was $29,987, the EDA was recommending approval of the extension, and the EDA had recommended lowering the interest rate on one of the loans so that the rate for both loans was established at three percent (3%).   In motion by Eichmann, seconded by Pfeifer, Resolution No. 2012-16 entitled “Resolution Modifying Terms Of The Two Revolving Loans Previously Provided To Brian Grey D.B.A. Volk Electric“, was introduced.  Councilmember Zieman questioned if interest was continuing to accrue on the loans and would be figured into the final amounts due.  Wille reported interest was continuing to accrue as were 5% penalty amounts for each late payment.  A motion was made by Kvamme, seconded by Pfeifer, to lower the interest rate stated in the resolution to 1%.  Kvamme stated his belief that most people in Mr. Grey’s position would have declared bankruptcy and been done with repayments, but Grey was working to pay off the debt and his spouse was also willing to sign a personal guarantee.  Kvamme stated the interest rate should be lowered as a gesture of support for Grey’s efforts.  With all in favor, the motion carried.

Councilmember Zieman expressed his belief that if the EDA had recommended a 3% interest rate, and if 3% was the going rate for revolving loans, then the interest rate should not be modified further.  Councilmember Kvamme pointed out that lowering the interest rate to 1% was a more significant gesture of support and that the interest rate on other revolving loans ranges from 0% to 5% or more.  Upon roll call of the modified Resolution, Councilmembers Pfeifer, Kvamme, Eichmann, Carlin, Brand and Mayor Strand voting aye, Councilmember Zieman voting nay, the Resolution was declared passed and adopted as amended.  A complete copy of Resolution No. 2012-16 is contained in the City Administrator’s book entitled Council Resolutions 18. 

Revolving Loan Extension Request:  Beaudry Creative, Inc. –  Community Development Director Wille presented the Economic Development Authority’s (EDA) recommendation for approval of a twenty-four (24) month extension on the balloon payment date for the revolving loan provided to Beaudry Creative, Inc.  Wille indicated Ms. Beaudry had been timely with and made all payments due on the loan which has a balance of $28,513.95 and the EDA recommended extending the balloon date to February 1, 2014 at the existing interest rate of five percent (5%).  Councilmember Kvamme indicated the EDA had reviewed the company financial statements which showed the company was healthy and profitable.  Councilmember Zieman questioned why the interest rate was not being changed as it had been with the previous agenda item when the applicant had sufficient collateral on the loan.  Zieman expressed his belief that the interest rate was inconsistent and indicated he would be voting nay on the resolution.  In motion by Brand, seconded by Kvamme, Resolution No. 2012-17 entitled “Resolution Modifying Terms Of A Revolving Loan Previously Provided To Beaudry Creative, Inc.“, was introduced.  Upon roll call, Councilmembers Pfeifer, Kvamme, Eichmann, Carlin, Brand and Mayor Strand voting aye, Councilmember Zieman voting nay, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2012-17 is contained in the City Administrator’s book entitled Council Resolutions 18. 

2012 Equipment Certificate Bid Authorization – City Administrator Prafke recommended authorization be provided to receive bids for the issuance of $240,000 in 2012 equipment certificates.  Prafke indicated the equipment certificate budget also included an additional $147,000 in purchases that would be funded by the general fund budget and, depending on the interest rates received for the issuance, approximately $52,000 in yearly debt would be budgeted for repayment of the certificates.  Councilmember Brand questioned why two police squad cars were needed and Prafke indicated that two current squads had excess mileage and need to be replaced.   In motion by Kvamme, seconded by Brand, Resolution No. 2012-18 entitled “Resolution Authorizing Solicitation Of Bids For 2012 Equipment Certificate“, was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2012-18 is contained in the City Administrator’s book entitled Council Resolutions 18. 

Website Upgrade –  City Administrator Prafke recommended acceptance of the quote from Voyageur Web for upgrading the City’s website at a cost of $10,600 to be funded by the 2009 equipment certificate.  In motion by Zieman, seconded by Carlin, Resolution No. 2012-19 entitled “Resolution Authorizing Redevelopment Of The City Of Saint Peter Website To Be Funded From The 2009 Equipment Certificate“, was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2012-19 is contained in the City Administrator’s book entitled Council Resolutions 18. 

 

Reports

 

Mayor’s Reports – Mayor Strand reported on his recent activities which included the ACEC awards banquet; attending an Ambassador’s meeting and their annual dinner; Winterfest activities and Region Nine Development Commission hiring a new executive director.

Elected Officials Conference – City Administrator Prafke asked Councilmembers Carlin, Brand, and Zieman to report on the training they received at the League of Minnesota Cities elected officials conferences in January.  Councilmember Carlin reported the experienced official’s conference included discussion on utilizing social media for public comment and contained an interesting vision of where cities are going. Councilmember Brand indicated the newly elected official’s conference was very interesting and he learned a lot about financing and actions the Council can and can’t take.  Councilmember Zieman indicated he had only attended the first day of the conference and expressed disappointment with the conference.  Zieman indicated he felt the sessions were not necessary and redundant.

Highway 169 Coalition Legislative Breakfast – Public Works Director Giesking provided copies of a brochure developed by the Highway 169 Coalition that was distributed to legislators at the legislative breakfast event and indicated discussion included the Highway 101 river crossing; grand funding; bonding for four lanes, transit bus lane, access issues along the corridor, flooding issues, and replacing the gas tax with a mileage tax that would be based on the number of miles driven.  Giesking also reported the March Coalition meeting would take place in Mankato.

Sherco 3 Power Plant – Public Works Director Giesking reported a fire at the Sherco 3 power plant had shut the plant down and caused SMMPA to purchase power on the open market.  Giesking noted that SMMPA owned 41% of the Sherco plant and it was expected the shutdown would have minimal impact, if any, on electric rates.

Water Treatment Plant Award – Mayor Strand and Public Works Director Giesking reported on the grand award provided to the City, Bolton and Menk, Inc. and Rice Lake Contracting by the American Council of Engineering Companies of Minnesota (ACEC/MN) in recognition of the City’s Water Improvement Project (the new water treatment plant and water wells).

City/School/Gustavus Meeting – Councilmember Kvamme reported on discussion at the last City/School/Gustavus meeting which included annexation, parking, day care, athletic fields, art venues, off-campus housing, a crosswalk on Jefferson at Arbor View apartments; and a possible trail along Gardner Road.

MMUA Legislative Conference – Public Works Director Giesking reviewed information presented as part of the Minnesota Municipal Utilities Association (MMUA) legislative conference.

 

There being no further business, a motion was made by Pfeifer, seconded by Carlin, to adjourn the meeting.  With all in favor, the motion carried and the meeting adjourned at 8:25 p.m.