City Council Minutes of June 13, 2016

Date: 
June 13, 2016

 

MINUTES OF THE CITY COUNCIL MEETING

JUNE 13, 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 June 13, 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, Carlin, Kvamme, Brand, and Mayor Zieman.  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 Brand, to approve the agenda.  With all in favor, the motion carried.

Public Hearing:  Annexation Of Property Request  – Mayor Zieman opened the public hearing on a petition by Wenner-Underwood Farms for annexation of a parcel of land located at the intersection of West Broadway Avenue and Gardner Road at 7:02 p.m.  City Administrator Prafke reviewed the process under which public hearings are held.  Community Development Director Wille provided background information on the proposed annexation which was necessary to allow construction of a roundabout at the intersection and which had inadvertently been left out of a previous annexation action.  Wille indicated action to adopt the annexation would be scheduled at the June 27, 2016 regular meeting.  There being no further speakers, the public hearing was declared closed at 7:05 p.m.

Public Hearing:  Housing Tax Increment Financing District Establishment  – Mayor Zieman opened the public hearing on the proposed establishment of a housing Tax Increment Financing district that would be used to finance construction of public improvements in the Traverse Green Subdivision at 7:06 p.m.  Shannon Sweeney of David Drown Associates provided background information on the reasons for establishing a tax increment financing district.  Sweeney indicated the district would have a maximum life of 26 years and tax increments from the City, County and School District #508 would be captured if the district was established.  Sweeney noted that the Tax Increment Financing plan included a map of the district encompassing all of Traverse Green Subdivision and a budget that was approximately $7,000,000, while noting that the budget was designed to give the maximum flexibility for use of revenues generated by the district.  Sweeney also stated the income eligibility limits included in the plan ($77,100 for a family of two or less and $88,665 for a family of three or more) were set each year by the State of Minnesota.  There being no further speakers, the public hearing was declared closed at 7:10 p.m.

Approval of Minutes – A motion was made by Parras, seconded by Pfeifer, to approve the minutes of the May 23, 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 May 23, 2016 regular City Council meeting is contained in the City Administrator’s book entitled Council Proceedings 19.

Consent Agenda – In motion by Kvamme, seconded by Grams, Resolution No. 2016-94 entitled, “Resolution Approving Consent Agenda“, was introduced. Councilmember Parras questioned why Gustavus was not required to pay for the $20,000 transformer purchase that was only being purchased because of Gustavus’ heating plant project.  City Administrator Prafke indicated the City’s policy was to provide transformers to ensure that the correct and most efficient transformer was purchased rather than the one with the lowest cost.  Councilmember Carlin also pointed out that the businesses using larger transformers pay a higher utility rate that helps cover the cost of the bigger equipment.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2016-94 is contained in the City Administrator’s book entitled Council Resolutions 21.

Adoption of Tax Increment Financing Plan –  Shannon Sweeney of David Drown Associates once again provided a recommendation for establishing Tax Increment Financing District No. 1-20 and noted the increments generated by the district would be used, along with lot sale revenues, to finance the construction of public improvements in the Traverse Green Subdivision.  In motion by Kvamme, seconded by Grams, Resolution No. 2016-95 entitled “Resolution Approving Establishment Of Tax Increment Financing District No. 1-20 Within Municipal Development District No. 1, And The Adoption Of The Tax Increment Financing Plan Relating Thereto”, was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2016-95 is contained in the City Administrator’s book entitled Council Resolutions 21. 

Sale Of 2016 G.O. Tax Increment Financing Bonds – Shannon Sweeney of David Drown Associates presented a recommendation to award the bid for sale of $2,405,000 in G.O. Tax Increment Financing Bonds, Series 2016A to United Banker’s Bank with Hometown Bank at the net interest rate of 2.5180%.  Sweeney reported the interest rate was below the estimated rate of 3.2732% which would save the City approximately $233,000 in debt service payments which might otherwise have had to be paid using property tax revenue.  Sweeney also noted the Standard and Poor’s credit rating on the issuance was “Aa-“ which he considered a “great” credit rating.   In motion by Parras, seconded by Brand, Resolution No. 2016-96 entitled “Resolution Accepting Proposal On The Competitive Negotiated Sale Of $2,405,000 General Obligation Tax Increment Bonds, Series, 2016A, And Levying A Tax For The Payment Thereof”, was introduced.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2016-96 is contained in the City Administrator’s book entitled Council Resolutions 21. 

Hospital Ambulance Purchase – River's Edge Hospital and Clinic CEO George Rohrich addressed the Council to present the Hospital Commission request for authorization to purchase a 2016 Road Rescue Ultramedic 168” type 3 Ford ambulance from Everest Emergency Vehicles in the total amount of $210,463 to replace a 2001 ambulance.  Rohrich indicated that although the proposal from Everest was not the lowest proposal received, the Ultramedic vehicle was considered a better value because it was constructed of all aluminum.  Rohrich also noted the vehicle used regular gasoline as opposed to the diesel ambulances previously purchased and the gas vehicle would cost less to maintain.  Councilmember Carlin questioned the status of the second ambulance and Rohrich indicated the engine had been replaced in 2015, but other than small issues it was working well.  Carlin also questioned what would happen with the 2001 ambulance and Rohrich indicated it was yet to be determined and suggested it be used by the City as an equipment vehicle.   In motion by Brand, seconded by Parras, Resolution No. 2016-97 entitled “Resolution Approving Purchase Of Replacement Ambulance 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. 2016-97 is contained in the City Administrator’s book entitled Council Resolutions 21. 

Revolving Loan Request:  Chabeans LLC – Community Development Director Wille presented the Economic Development Authority (EDA) recommendation for approval of a request by Chabeans, LLC (dba Patrick’s On Third) for a $25,000 accessibility loan to renovate the restrooms at 125 South Third Street.  Wille noted the terms of the loan included amortized over a ten (10) year period at zero percent (0%) interest; a second mortgage on the South Third Street property; and personal guarantees by John and Tamara Mayer.  A motion was made by Councilmember Pfeifer to remove the requirement for the second mortgage.  There being no second, the motion failed.  In motion by Grams, seconded by Kvamme, Resolution No. 2016-98 entitled “Resolution Approving A $25,000 Accessibility Enhancement Revolving Loan To Chabeans, LLC To Partially Finance The Remodeling And Expansion Of Restroom Facilities At 125 South Third Street”, was introduced as originally proposed.  Upon roll call, with all in favor, the Resolution was declared passed and adopted.  A complete copy of Resolution No. 2016-98 is contained in the City Administrator’s book entitled Council Resolutions 21. 

Reports

Mayor’s Report – Mayor Zieman reported Bluesfest and the Memorial Day program in Minnesota Square Park were both well attended.

RP3 Designation – Public Works Director Moulton reported the City’s Electric Utility had received an “Reliable Public Power Provider” (RP3) designation from the American Public Power Association (APPA).  Moulton noted the recognition was based on the City’s electric system improvements; reliability of the electric system, safety measures being utilized; and workforce development and that the City was one of only 219 public power providers nationwide and only nine in Minnesota to meet the standards for the RP3 designation.

Goal Session Report – City Administrator Prafke directed Council attention to the report included in the Council packet recapping discussion at the June 6th goal session.

Councilmember Brand extended his appreciation to the City’s Public Works crews for their quick response to Friday’s severe storms and for keeping the electricity available when so many area communities lost power.

Councilmember Kvamme expressed his appreciation to the Police Department for recovering his stolen car within six hours of it being taken.

There being no further business, a motion was made by Pfeifer, seconded by Carlin, to adjourn.  With all in favor, the motion carried and the meeting adjourned at 7:45 p.m.