City Council Minutes of July 9, 2018

Date: 
July 9, 2018

MINUTES OF THE CITY COUNCIL MEETING

JULY 9, 2018

 

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 July 9, 2018.

A quorum present, Mayor Zieman called the meeting to order at 7:00 p.m.  The following members were present:  Councilmembers Brand, Kvamme, Pfeifer, Grams, Johnson, and Mayor Zieman.  Absent was Councilmember Carlin.  The following officials were present: City Administrator Prafke, Assistant City Attorney Grean and City Engineer Domras.

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

Approval of Minutes – A motion was made by Brand, seconded by Johnson, to approve the minutes of the June 25, 2018 regular City Council meeting.  With all in favor, the motion carried and the minutes were approved.  A complete copy of the minutes of the June 25, 2018 regular City Council meeting is contained in the City Administrator’s book entitled Council Proceedings 19.

Public Hearing:  Senior Housing and Health Care Revenue Refunding Bonds – City Administrator Prafke reviewed the Council’s rules for conduct of a public hearing.

Mayor Zieman opened the public hearing on issuance of senior housing healthcare revenue refunding bonds at 7:04 p.m.  City Administrator Prafke indicated the proposed action was a refunding of bonds originally issued in 1999 for senior housing in a number of area communities including the Wilds of Sand Prairie project in Saint Peter.  Prafke noted the action in 1999 and the proposed action in 2018 would have no costs for the City of Saint Peter or the taxpayers and was being proposed by two of the communities to achieve a better interest rate.  There being no further speakers, the hearing was declared closed at 7:05 p.m.

Public Hearing:  Registered Land Survey #73 – Mayor Zieman opened the public hearing on Registered Land Survey #73 at 7:06 p.m.  City Administrator Prafke reported that as per State Statutes, a Registered Land Survey was necessary to divide Tract C of Registered Land Survey #57 into two lots and if approved, the action would provide for separation of the parcels for the Hospital and the Medical Office Building.  Prafke also noted that staff’s recommendation for approval of the survey was contingent upon receipt of a revised easement from Alltel Communications (dba Verizon Wireless) which had a microcell tower at the Hospital site.  There being no further speakers, the hearing was declared closed at 7:07 p.m.

Consent Agenda – In motion by Grams, seconded by Brand, Resolution No. 2018-103 entitled “Resolution Approving Consent Agenda“ was introduced.  Councilmembers asked questions related to the well repair and the parks restroom cleaning disbursement.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2018-103 is contained in the City Administrator’s book entitled Council Resolutions 22.

Hospital Bond Issuances – Shannon Sweeney of the City’s financial consulting firm David Drown Associates, recommended approval be provided for issuance of two bonds related to the 2018 River's Edge Hospital Expansion Project.  Sweeney noted the 2018B issuance would be in the amount of $24,146,000 for a term of 30 months and serve as a construction loan until the USDA permanent financing is released and the 2018C issuance of $5,000,000 would be the USDA required long-term financing for a term of twenty-five (25) years.  Sweeney reviewed the interest rates on the issuances which are variable but have rate collar’s attached that specify the minimum and maximum interest rates for both issuances.  Sweeney also noted that the 2018C issuance with People’s Bank Midwest could be converted after the first of the year.  In motion by Grams, seconded by Brand, Resolution No. 2018-104 entitled “Resolution Providing For The Issuance And Sale Of A Healthcare Bond Anticipation Note (River's Edge Hospital Project), Series 2018B And Authorizing Execution Of Related Documents“ was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2018-104 is contained in the City Administrator’s book entitled Council Resolutions 22.

Councilmember Brand asked if the bond issuance actions meant the City was at the point of “no return” on proceeding with the Hospital expansion.  City Administrator Prafke indicated his belief that the City had previously reached that point by acceptance of the USDA loans.  In motion by Johnson, seconded by Pfeifer, Resolution No. 2018-105 entitled “Resolution Providing For The Issuance And Sale Of A Healthcare Revenue Note (River's Edge Hospital Project), Series 2018C And Authorizing Execution Of Related Documents“ was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2018-105 is contained in the City Administrator’s book entitled Council Resolutions 22.

City Administrator Prafke noted development of the financing plan for the 2018 River's Edge Hospital Expansion Project had been “no small undertaking” and thanked Mr. Sweeney for an excellent job in helping the City and Hospital staff work through the process.

Hospital Equipment Purchases – River's Edge Hospital and Clinic CEO Rohrich appeared before the City Council to request repair of an ambulance and several purchases related to the 2018 River's Edge Hospital Expansion Project.  Rohrich reported the overall cost for all seven items related to the Expansion Project was below the budgeted amount.

Rohrich presented the Hospital Commission recommendation to repair an ambulance damaged in a collision with a deer at a cost of $110,553.18 with work done by Forbes.  Rohrich indicated the ambulance, which had been scheduled for replacement in two years, would have the chassis replaced with a 2019 model and the box would be upgraded.  Rohrich indicated staff felt repairing the ambulance would be a wise investment and would also complete the conversion of the ambulances from diesel fuel to gasoline.  In motion by Pfeifer, seconded by Brand, Resolution No. 2018-106 entitled “Resolution Approving Repair Of Ambulance 1801 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. 2018-106 is contained in the City Administrator’s book entitled Council Resolutions 22.

Rohrich presented the Hospital Commission recommendation to accept the proposal for audio/visual equipment for the Hospital from Omni Tech in the amount of $78,453.  In motion by Johnson, seconded by Grams, Resolution No. 2018-107 entitled “Resolution Approving Purchase Of Audio/Visual 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. 2018-107 is contained in the City Administrator’s book entitled Council Resolutions 22.

Rohrich presented the Hospital Commission recommendation to accept the proposal received from Parsons in the amount of $182,735 for structured cable management.  In motion by Pfeifer, seconded by Grams, Resolution No. 2018-108 entitled “Resolution Approving Purchase Of Structured Cable Management 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. 2018-108 is contained in the City Administrator’s book entitled Council Resolutions 22.

Rohrich presented the Hospital Commission recommendation to accept the proposal from Loffler Companies in the amount of $61,125.91 for upgrades to the current telephone system.  Rohrich indicated the project had originally included replacement of the system, but Loffler, the current system provider, had suggested upgrading the system which would allow for reuse of some of the existing phone equipment and save a substantial amount of money.  In motion by Brand, seconded by Johnson, Resolution No. 2018-109 entitled “Resolution Approving Purchase Of Telephone 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. 2018-109 is contained in the City Administrator’s book entitled Council Resolutions 22.

Rohrich presented the Hospital Commission recommendation for acceptance of a proposal from Omni Tech for a nurse call system in the amount of $355,148.  Rohrich also indicated the Omni Tech proposal, which was the second lowest cost was recommended as the lowest cost proposal from Hill-Rom included a mandatory service contract fee which resulted in the overall cost being the highest. Councilmember Grams asked if any of the alternates would be purchased.  Rohrich stated “Option 5 Patient Tracking Board” may be considered for purchase.  In motion by Grams, seconded by Brand, Resolution No. 2018-110 entitled “Resolution Approving Purchase Of Nurse Call System For River's Edge Hospital and Clinic“ was introduced with a correction to the resolution to show the correct proposal cost of $355,568.  Upon roll call, with all in favor, the Resolution was declared passed and adopted as amended.  A complete copy of Resolution No. 2018-110 is contained in the City Administrator’s book entitled Council Resolutions 22.

Rohrich presented the Hospital Commission recommendation for acceptance of the proposal from Alternate Business Furniture in the amount of $412,277 for office furniture and some in waiting areas and other rooms.  Rohrich indicated the proposal was substantially below the $655,622 budgeted amount as the budget had been developed with the thought of replacing all of the furniture which would no longer be the case as existing furniture would be used.  Councilmember Kvamme asked why three of the four bids were from Nashville vendors.  Rohrich suggested that Nashville was a hub for healthcare businesses.  In motion by Johnson, seconded by Kvamme, Resolution No. 2018-111 entitled “Resolution Approving Purchase Of Furniture 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. 2018-111 is contained in the City Administrator’s book entitled Council Resolutions 22.

Rohrich presented the Hospital Commission recommendation for acceptance of the proposal from Hotel and Restaurant Supply in the amount of $412,035.  Rohrich indicated that all the equipment to supply the kitchen and café will be new as these services didn’t previously exist.  In motion by Grams, seconded by Brand, Resolution No. 2018-112 entitled “Resolution Approving Purchase Of Kitchen 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. 2018-112 is contained in the City Administrator’s book entitled Council Resolutions 22.

Rohrich presented the Hospital Commission recommendation to accept the proposal submitted by Parsons in the amount of $164,344 for a new security system that would include card readers for door locks, cameras in the building and the intercom system.  In motion by Brand, seconded by Johnson, Resolution No. 2018-113 entitled “Resolution Approving Purchase Of Security 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. 2018-113 is contained in the City Administrator’s book entitled Council Resolutions 22.

Registered Land Survey #73 – City Administrator Prafke and Assistant City Attorney Grean recommended approval of Registered Land Survey #73 which would serve to split the Hospital and Medical Office Building land into two distinct parcels.  Prafke noted the action was needed to allow for financing of the Hospital expansion project.  Grean recommended that the action be contingent upon receipt of a revised easement agreement with Alltel Communications (dba Verizon Wireless) which had a microcell tower at the hospital.  Councilmember Kvamme suggested the resolution be modified to indicate the Planning Commission had recommended approval of the Registered Land Survey.  In motion by Pfeifer, seconded by Grams, Resolution No. 2018-114 entitled “Resolution Approving Waiver Of Subdivision For Tract C, Registered Land Survey #57, City Of Saint Peter, Nicollet County, Minnesota And Accepting Registered Land Survey No. 73“ was introduced with the additional language about the Planning Commission recommendation.  Upon roll call, with all in favor, the Resolution was declared passed and adopted as modified.  A complete copy of Resolution No. 2018-114 is contained in the City Administrator’s book entitled Council Resolutions 22.

Senior Housing Refunding Bonds – City Administrator Prafke recommended approval of the resolution related to the senior housing refunding bonds which had been prepared by bond counsel.  Prafke again noted there would be no cost to the City of Saint Peter or local taxpayers if approval was provided.  In motion by Kvamme, seconded by Pfeifer, Resolution No. 2018-115 entitled “Resolution Authorizing The Issuance Of Housing And Health Care Revenue Refunding Bonds (Ecumen-Second Century And Owatonna Senior Living Project), Series 2018A and 2018B“ was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2018-115 is contained in the City Administrator’s book entitled Council Resolutions 22.

Reports

Flooding Update – City Administrator Prafke reported the Minnesota River was continuing to go down and the improvements made in and around Saint Peter in the last few years to prevent flooding had paid off with little to no damage in the city.

Fourth of July – City Administrator Prafke stated the Fourth of July events in Saint Peter had attracted large crowds.

Veteran’s Memorial – City Administrator Prafke reported on the dedication ceremony for the Veteran’s Memorial in Minnesota Square Park which had been well attended.  Prafke also noted staff would be meeting with the Memorial Committee at the end of the summer to discuss the process for transfer of the memorial to the City.  Prafke also noted that anyone wishing to have a name placed on the memorial should contact the Committee directly until the transfer was completed.

Prafke also noted several upcoming meetings including a meeting on “commercial creep” on July 11th; the Coalition of Greater Minnesota Cities conference being co-sponsored by Mankato, North Mankato and Saint Peter the week of July 25th; the City/County meeting scheduled for July 12th; and the Minnesota River Valley Transit Board meeting on July 11th.

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 8:03 p.m.