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HomeMy WebLinkAboutCouncil.Minutes.12-03-2007.Regular Proceedings of the City Council, City of Cape Girardeau, Mo. Regular Session December 3,2007 GG-23 E00720041.10 REGULAR SESSION—DECEMBER 3,2007 The Cape Girardeau City Council convened in regular session on Monday, December 3, 2007, at 7:00 p.m., with Mayor Jay B. Knudtson presiding and Council Members Charlie Herbst, Matt Hopkins,Marcia Ritter,Loretta Schneider, Debra Tracy and John Voss present. Rev. Mike Malone of St. Mark Lutheran Church presented the invocation, and the Pledge of Allegiance was recited. Prior to the regular session,the City Council convened in closed session for purposes of discussug personnel, property acquisition, litigation, and confidential communications with the City Attorney, pursuant to RSMo. Sections 610.021(1), (2) and (3) upon Mr. Voss' motion, Mr. Hopkins' second, and the following vote: Ayes, Herbst, Hopkins, Knudtson, Ritter, Schneider, Tracy and Voss. Nays, none. The minutes of the November 19, 2007, regular and closed sessions were approved upon Mrs. Ritter's motion, Mrs. Schneider's second, and the following vote: Ayes, Herbst, Hopkins, Knudtson, Ritter,Schneider,Tracy and Voss. Nays, none. Mrs. Tracy made a motion, seconded by Mrs. Schneider, to adopt the agenda. The motion was approved upon the following vote: Ayes,Herbst,Hopkins, Knudtson,Ritter,Schneider,Tracy and Voss. Nays, none. COUNCIL COMMUNICATIONS Mr. Charlie Herbst stated that he and Parks and Recreation Director Dan Muser attended the Red House Volunteer Appreciation Reception on Sunday. Ms. Brenda Schloss of the Planning Services Office will be the Chair of the Red House Board for the upcoming year. Ms. Jane Jackson retired, and Mr. Herbst thanked her for her years of service to the Red House. Ms. Ritter commended the City employees who worked to plan the employee Christmas party. It was well attended. APPEARANCES Mr. Don Howard appeared and expressed his opposition to the proposed Parks and Stormwater Tax. Mr. Mitch Robinson, Execute Director of Cape Area MAGNET appeared with Mark Diamond, President and CEO of Schaefer Electrical Enclosures in support of the resolution on the agenda regarding industrial revenue bonds for their proposed expansion in Cape. Mr. Diamond gave a history of his company currently located in Advance, Missouri. The company is looking to move to the DANA building in Cape to increase the company's capacity, both in square footage and employees. This will increase his employees by 38 and the square footage will increase from 65,000 to 150,000. He stated he needs assistance through state and local tax breaks to make this expansion work and to be cost effective. Mr. Diamond stated the company will experience incremental downtime during the move,which will allow continued production. The goal is to be up and running at the new location by April 1, 2008. Mr. Mitch Robinson reviewed the process of issuing Chapter 100 Bonds and Industrial Revenue Bonds that would be used to assist Schaefer Electrical Enclosures. The proposal offers a 100 Proceedings of the City Council, City of Cape Girardeau, Mo. Regular Session December 3, 2007 GG-24 Eu07c004iJB percent property tax abatement, and Schaefer will pay 50 percent of that amount back to the City as"Payments-In-Lieu-Of-Taxes"for ten years. The city will own the building and lease it back to the company for the cost of the debt service on the bonds.. The Industrial Revenue Bonds are a statutory mechanism for the company to borrow the money at a reduced interest rate and with tax abatement There will be no liability on the part of the City. Mayor Knudtson stated this is the beginning of the process and further action will be required by the City Council in the future. BILL NO. 07-205 was presented as follows: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAPE GIRARDEAU, MISSOURI, TOWARD THE ISSUANCE OF THE CITY'S INDUSTRIAL REVENUE BONDS TO FINANCE A PROJECT FOR SCHAEFER'S ELECTRICAL ENCLOSURES, INC., AND AUTHORIZING CERTAIN ACTIONS RELATING THERETO Mr. Voss made a motion, seconded by Mrs. Tracy, to approve the reading of BILL NO. 07-205, and to adopt the resolution. Following discussion by the Council, the motion was approved upon the following vote: Ayes, Herbst, Knudtson, Ritter, Schneider, Tracy and Voss. Nays, none. Mr. Hopkins abstained for financial reasons, due to having a business relationship with Schaefer's Electrical Enclosures.BILL NO. 07-205 is RESOLUTION NO. 2325. CONSENT ORDINANCES The following bills were given second and third readings: BILL NO. 07-195 ORDINANCE APPROVING THE RECORD PLAT OF THE LOCHS AT DALHOUSIE-PHASE III BILL NO. 07-196 AN ORDINANCE APPROVING THE RECORD PLAT OF DKR 10th SUBDIVISION BILL NO. 07-197 AN ORDINANCE APPROVING THE RECORD PLAT OF ROSE MARIE SUBDIVISION -� ORDINANCE BILL NO. 07 �03 AN ORD A CE A MENDING SCHEDULE F OF SECTION 26-247 OF THE CITY CODE BY ESTABLISHING NO PARKING ZONES ON MORGAN OAK STREET AT ITS INTERSECTION WITH FOUNTAIN STREET, AND ON MORGAN OAK STREET AT ITS INTERSECTION WITH SPANISH STREET, IN THE CITY OF CAPE GIRARDEAU, MISSOURI Mr. Herbst made a motion, seconded by Mrs. Schneider, to approve the second and third readings of BILL NOs. 07-195, 07-196, 07-197 and 07-203, and to adopt the ordinances. The motion was approved upon the following vote: Ayes,Herbst, Hopkins, Knudtson,Ritter, Schneider,Tracy and Voss. Nays, none. BILL NO. 07-195 is ORDINANCE NO. 3870; BILL NO. 07-196 is ORDINANCE NO. 3871; BILL NO. 07-197 is ORDINANCE NO. 3872; BILL NO. 07-203 is Proceedings of the City Council, City of Cape Girardeau, Mo. Regular Session December 3,2007 GG-25 cOO,2u04.JB ORDINANCE NO. 3873. Mr. Voss stated he believes there is a need for visitor parking at the River Campus. He spoke with Dr. Dobbins at the University about this issue, and he is receptive to making some parking changes. Mayor Knudtson stated staff will contact Dr. Dobbins and work on developing visitor parking at the River Campus NEW ORDINANCES BILL NO. 07-208 was given first readingas follows: AN ORDINANCE PROVIDING FOR A SALES TAX IN THE AMOUNT OF ONE- HALF OF ONE PERCENT FOR THE PURPOSE OF FUNDING FOR STORM WATER CONTROL AND LOCAL PARKS AND CALLING AN ELECTION IN THE CITY OF CAPE GIRARDEAU, MISSOURI, ON THE QUESTION OF WHETHER TO IMPOSE SUCH SALES TAX Mrs. Schneider made a motion,seconded by Mr. Herbst,to approve the first reading of BILL NO. 07-208. Mayor Knudtson stated Council has been discussing this issue for quite some time, and a good process has been followed to bring this to a vote of the people. City Attorney Eric Cunningham stated that if approved, the tax would be imposed beginning October 1, 2008. The motion was approved upon the following vote: Ayes, Herbst, Hopkins, Knudtson, Ritter, Schneider,Tracy and Voss. Nays, none. BILL NO. 07-209 was given first reading as follows: AN ORDINANCE APPROVING THE RECORD PLAT OF ASHLAND COURT SIXTH ADDITION Mrs. Schneider made a motion,seconded by Mr. Herbst, to approve the first reading of BILL NO. 07-209. The motion was approved upon the following vote: Ayes, Herbst, Hopkins, Knudtson, Ritter,Schneider,Tracy and Voss. Nays, none. RESOLUTIONS BILL NO. 07-206 was presented as follows: A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT WITH PHILLIP SMITH, ARCHITECT, LLC, FOR RENOVATION OF THE MID-STATES HANGAR AT THE CAPE GIRARDEAU REGIONAL AIRPORT The reading of BILL NO. 07-206 was approved and the resolution adopted upon Mr. Herbst's motion, Mr. Voss' second, and the following vote: Ayes, Herbst, Hopkins, Knudtson, Ritter, Schneider,Tracy and Voss.Nays,none. BILL NO. 07-206 is RESOLUTION NO.2326. BILL NO. 07-207 was presented as follows: A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT WITH MISSOURI HIGHWAYS AND TRANSPORTATION COMMISSION FOR FEDERAL AID PROGRAM FOR FOUNTAIN STREET, PHASE II, IN THE CITY OF CAPE GIRARDEAU, MISSOURI Proceedings of the City Council, City of Cape Girardeau, Mo. Regular Session December 3, 2007 GG-26 tUU/CUU41J8 The reading of BILL NO. 07-207 was approved and the resolution adopted upon Mr. Herbst's motion, Mrs. Tracy's second, and the following vote: Ayes, Herbst, Hopkins, Knudtson, Ritter, Schneider, Tracy and Voss Nays, none. BILL NO. 07-207 is RESOLUTION NO.2327. Mayor Knudtson stated that Mike Sheehan and Jack Rickard, an adjoining property owner, have spoken to him about putting in water fountain along this portion of the new Fountain Street. Mrs. Tracy requested Mr. Sheehan speak to the Council about developing a historic district in his area of town. Mr. Sheehan stated he is on the Historic Preservation Commission and has been working on developing design guidelines and a petition to designate an area in his part of town as a historic district. This nomination will eventually come before the Planning and Zoning Commission and the City Council. At the present time the boundaries would be Broadway,West End, Highland, Hillcrest,Henderson to Normal, and down Park to Broadway. There being no further business, the City Council adjourned upon Mr. Hopkin's motion, Mr. Voss' second, and the following vote: Ayes, Herbst, Hopkins, Knudtson, Ritter, Schneider,Tracy and Voss. Nays, none. Jay B, udtson, Mayor SO, I 0 R,OG(COP Gayle a onrad, City Clerk Proceedings of the City Council, City of Cape Girardeau, Mo. Closed Session December 3,2007 GG-27 Euu,euuaijB CLOSED SESSION—DECEMBER 3,2007 The following items were discussed in closed session on December 3, 2007: Overtime/Minimum Wage Lawsuit: City Manager Doug Leslie reported on the status of the police/fire overtime issue due to a change in state legislation. The Missouri Municipal League filed a lawsuit and is now awaiting a determination from the Judge. City Attorney Eric Cunningham reviewed the lawsuit relating to Proposition B previously approved by the voters. Judge Callahan in the Circuit Court of Cole County is hearing the case. The League is contesting the constitutionality of the proposition based on: (1) violation of the Hancock Amendment (2) Statutory construction issue on what is a"corporation"; state case law says that the word does not include a municipal corporation unless the statute specifically says so; (3) Provisions that local funds cannot be appropriated by initiative without creating a new revenue stream; (4) Constitutional provision that says the state is prohibited from fixing the compensation for charter city and county employees. The case was heard on November 5, 2007. Both sides have submitted a proposed Order and are waiting on the Judge's ruling. Mr. Leslie stated that based on letters from attorneys, his recommendation is to stay the course and keep doing what we are doing. If the lawsuit is ruled against the cities, the attorneys feel that the cities will not have to pay the two times back pay. Finance Director John Richbourg and the Human Resources Office are tracking this figure in case cities are required to pay the back pay. The attorneys feel it will be appealed to the Missouri Supreme Court with no ruling until fall of 2008. Fire and Police unions are on the cities' side, so we have not changed their work schedules. Mr. Cunningham continued that some cities are entering the settlement agreements so employees will not go after the cities for back wages, but federal law prohibits this. Mr. Leslie explained that the State minimum wage will go up January 1, 2008, and will affect about 220 employees The new Federal minimum wage will kick in the following year, and there will be an automatic escalator thereafter. The rest of the employees get atwo percent raise in January. LaSalle Avenue Property Acquisition: Mr. Leslie met with Mr. Dutch Meyr and the Mayor on Wednesday for further negotiationsauthorized by the City Council at the last meeting. Assistant City Attorney: City Attorney, Eric Cunningham stated Ms. Sylvia Edgar has been hired as the Assistant City Attorney, she has been a practicing attorney for six years, and Mr. Cunningham gave a review of her work history and education. She starts Decembed 2,2007. There being no further business, the City Council adjourned upon Mr. Hopkins' motion, Mr. Voss' second, and the following roll call vote: Herbst aye; Hopkins, aye; Knudtson, aye, Ritter aye;Schneider, aye;Tracy, aye;Voss,aye. -57 01~..-44. J�:Knudtson, ayor Gayle 6 Conrad, City Clerk Proceedings of the City Council, City of Cape Girardeau, Mo. Session GG-28 tOU/2UU41J1J THIS PAGE INTENTIONALLY LEFT BLANK.