HomeMy WebLinkAboutCouncil.Minutes.12-03-2007.Regular Proceedings of the City Council, City of Cape Girardeau, Mo.
Regular Session December 3,2007 GG-23
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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
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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
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Regular Session December 3,2007 GG-25
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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
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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
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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.
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01~..-44.
J�:Knudtson, ayor
Gayle 6 Conrad, City Clerk
Proceedings of the City Council, City of Cape Girardeau, Mo.
Session GG-28
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