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HomeMy WebLinkAbout09-07-1994RECORD OF OFFICIAL PROCEEDINGS OF THE COMMON COUNCIL 4338 CITY OF ROCHESTER, MINNESOTA Regular Meeting No. 8 - September 7, 1994 Agenda Item A-1 President Hunziker called the meeting to order at 7:00 P.M., the following members being present: President Hunziker, Councilmembers Canfield, Evans, McConnell, Myhrom, Senjem, Stobaugh. Absent: None. B-1 A Hearing on the proposed Final Plat to be known as Northern Slopes Eighth.Wishing to be heard was Roger Payne of 1700 Northern Dr. N.E. and was present for any questions the Council may have. Having no one else present that wished to be heard, President Hunziker closed the hearing. Senjem moved, Stobaugh second to adopt Resolution No. 472-9 approving the plat. Ayes (7), Nays (0).Motion carried. B-2 A Hearing on the Final Plat to be known as South Pointe Second Sub. Wishing to be heard was Mike Nigbur of McGhie and Betts, Inc. repres- enting the applicant. He stated that he had no problems with the conditions as listed. Councilmember Canfield asked if they had checked into an aviation noise letter that would be signed by home buyers since they are close to the Rochester Municipal Airport. Mr. Nigbur stated that they had such a letter and it would be signed. Mr. Terry Adkins, City Attorney stated that such a letter had been received and recorded for Traffic overhead and noise generated by the airport. Having no one else present that wished tol'beheard, President Hunziker closed the hearing. Myhrom moved, Canfield second to adopt Resolutio No. 473-94 approving the plat with the conditions as listed. Ayes (7) Nays (0).Motion carried. B-3 A Hearing on the Type III, Phase III Restricted Dev. Final Plan by Olmsted County for the construction of a household hazardous waste facility located on the Olmsted Co. Campus. Having no one present that wished to be heard, President Hunziker closed the hearing. McConnell moved, Stobaugh second to adopt Resolution No. 474-94 approving the request including the conditions as listed on the Request for Council Action. Ayes (7), Nays (0).Motion carried. B-4 A Hearing on the Final Plat to be known as K6nsington Cottages. Having no one present that wished to be heard, President Hunziker closed the hearing. Evans moved, McConnell second to adopt Resolutio No. 475-94 approving the plat suject to the six conditions in the Planning Staff report and contingent upon the land transfer being complete. Ayes (7), Nays (0).Motion carried. B-5 A Hearing on the Final Plat to be known as Replat of Block 2, Glendale 3rd. Wishing to be heard was Mike Nigbur of McGhie and Betts, Inc. appearing on behalf of the applicant. He requested that this be tabled until Sept. 19, 1994 because the grading plan was not yet completed. Wishing to be heard was a resident of 911 No. Valley Drive N.E. and also would like this to be tabled. Wishing to be heard was Scott Stekel of 943.No. Valley Dr. N.E. and is opposed to this project. He would like to see this area be developed into single family homes. Having no one else present that wished to be heard, Evans moved, Senjem second to continue the hearing until Sept. 19, 1994. Ayes (7), Nays (0).Motion carried. 1 RECORD OF OFFICIAL PROCEEDINGS OF THE COMMON COUNCIL CITY OF ROCHESTER, MINNESOTA Regular Meeting No. 8 - September 7, 1994 4339 1 Agenda Item M. 1 A Hearing on the Type III, Phase III Conditional Use Permit 94-29 by the Prow Company, Inc. to allow the placement of fill within the floodway of Cascade Creek. Wishing to be heard was Cedric Schultz Land Consultant and stated that this would be used for a parking lot. Councilmember Cnafield asked if he had any problems with the conditions and Mr. Schultz stated that he had none. Having no one else present that wished to be heard, President Hunziker closed the hearing. Canfield moved, Evans second to adopt Resolution No. 476-94 approving the request subject to the three conditions as listed on the Request for Council Action Planning and Zoning Commission recommendations. Ayes (7), Nays (0).Motion carried. A Hearing on the proposed Plat to be known as the Government Center. This i.s a Final Plat. Having no one present that wished to be heard, President Hunziker closed the6nr:ing.. Senjem moved, Stobaugh second to adopt Resolution No. 477-94 approving the plat. This is subject to the conditions as listed on the Request for Council Action. Ayes (7), Nays (0).Motion carried. A Hearing on the Three Applications for Transit Assistance Funding. Having no one present that wished to be heard, President Hunziker closed the hearing. Senjem moved, Stobaugh second to adopt Res. 478-94 approving the applications. Ayes (7), Nays (0).Motion carried A Hearing on the 1995 Community Development Block Grant (CDBG) Appropriation. Having no one present that wished to be heard, President Hunziker closed the hearing. Senjem moved, Evans second to approve the requests as follows: Public Service Requests Arc of Olmsted County $ 12,100. Omnia Fam. Services (Vehicle) 6,400. Omnia Fam. Services ( Computers ) 2,100. HRA - MCPP Progtam 3,400. We Can House 5,100. Community Youth Mentorship Program 21,600. Child Care Resource and Referral 37,400. (Child Care Program) Barrier Removal/Acquisition/Rehab. 47,300. Zumbro Valley Mental Health Center 48,800. (Acquisiton and Rehab.) Child Care Resource and Referral 68,600. (Acquisiton of Head Start Facility ) SEMCIL ( Home Modification Program) 28,300. ABC 42,600. Contingency 1,300. TOTAL $325,000.00 Ayes (6), Nays (1).Motion carried.Councilmember Myhrom voted nay. A Hearing on the Bandel Hills TIF District. Wishing to be heard was Suzanne Snyder of 1711 Walden Lane S.W. She is the Director of the Olmsted Housing Partnership and presented the plan for Bandel Hills housing. This plan was also presented to the Planning Commission to verify that this plan was consistent with the City's Comprehensive Plan. It was found that it was consistent with the Rochester Urban Service Area Plan. RECORD OF OFFICIAL PROCEEDINGS OF THE COMMON COUNCIL 4340 CITY OF ROCHESTER, MINNESOTA Regular Meeting No. 8 - September`7, 1994 Agenda Item � i B-10 Bandel Hills is a 25 unit townhome project intended to serve low income families. The projct site is located 238 feet north of 59th St. N.W. along Bandel Road and contains approx. 3 acres of land. The units are grouped into six clusters. The proposed unit mix includes 9-2 BR units 8-3 BR units and 8-4 BR units. Each unit has a single car garage (attached) each ha:s an unfinished basement and a community room and two outdoor play areas. The exception is with the two handicapped units. The Project ownership will be set up as a limited partnership with the Rochester Olmsted Community Housing Partnership (ROCHP) serving as the general partner. The project is a "pay as you go" TIF district. Under this arrangement the developer will borrow additional funds to cover the eligible TIF costs (primarily land acquisition and site improvements). As the annual propert, taxes are received, the City wi 11 .'rebate' the increment to ROCHP to help cover the debt service costs. ROCHP is requesting assistance in a principal amount of$282.000. The assistance would be paid out over a 17 year period at an interest rate of 8.5%. This corresponds to their MHFA mortgage terms. The actual increment to be provided on the project will be determined in a Development Agreement which would be negotiated by the City and RPCHP after approval ofthe TIF District,:: We estimate the tax increment generated by the project to be - approximately $32,000. The numbers cited above may differ from earlier figures becuase of a change in the classification of the property for tax purposes. The project was originally intended to be a housing cooperative. Co-ops are considered owner occupied and qualify for homestead exemptions. As a co-op, the tax increment would have been approximate $21,500. The Minnesota Houseing Finance Authority no longer underwrites co-ops. As a non -homestead property, the taxes are considerably higher than anticipated.. The increased operating costs associated with the higher taxes has increased the ar>ount of i ncre,r-nt nee(Jec', for the project. In the 1 ong run, the taxing entities ►ri i 1 benefit frcr.i the higher taxes flov.ing, from the rental project. The City generally prefers "pay as you go" TIF projects because they eliminate the need for municipal borrowing and they shift the default risk to the developer (the developerint agreement typically provides that if the taxes aren't paid, the City is not obligated to rebate the increment). There should be no local government aid penalty; for this project In addition to the previously committed low income housing credit and the TIF assistance, the Housing Partnership has applied for assistance from several private sources and from programs administered by the Minnesota Housing Finance Authority. Construction of the project will be contingent upon approval of these grants and loans. If the Council approve the creation of the District, the City will negotiate a redevelopment agreement with the Partnership. In terms of process, this is very similar to the recenity approved Quest project. y 1 F_� RECORD OF OFFICIAL PROCEEDINGS OF THE COMMON COUNCIL CITY OF ROCHESTER, MINNESOTA Regular Meeting No. 8 September 7 1994 4341 Agenda Item B-10 She stated that low-cost housing is needed in Rochester and the housing projects already built for low-cost housing such as Innsbruck and Highlands are filled and have a long waiting list. She stated that $7,000. has already been spent on this project in the securing of financing. Development is not low-cost but is a one time expenditure that will serve 100's of people in the years to come. TIF is the only thing they are requesting. There will be no local Tax Levy and no local taxpayer costs. She feels that this is a good opportunity to use State and Federal dollars so they stay local and willnot go elsewhere. Councilmember McConnell asked what the soft costs were etc. He was told approx. $73,000 a year. This was broken down for him. Councilmember McConnell also stated that he preferred scattered housing. There is a way to do homeownership. Councilmember Myhrom asked who owns the Rochester/Olmsted Housing Partnership. He was told it was volunteers run this and investors who get to make deductibles on their tax credits ( 75� will get them $1.00 credit).He wondered if the Housing Partnership was aware of the 45 vacant three bedroom apts.? He is opposed to this project and mentioned that a $90,000. place could rent as low as $300.00 a month. Wishing to be heard in Opposition was Jay Anderson of 5823 Edelweiss Lane N.W. He presented a petition with 445 signatures on it in opposition. Also speaking in opposition was Linda Stroetz of 5604 26th Avenue N.W.; Janice Penland of P.O. Box 723 S.E. ; Norm Nelson of 5618 56th Avenue N.W. ; Ron Voltz of 2725 59th St. N.W. Joe Geise of Rochester, Mn. ( Geise Property ); Randy Stroetz of 5604 26th Avenue N.W.; Mark Hal baken of..2527 15th St. S.E. and -Mr Steven Sacks `o,f _5.946. 26th_ Avenue N.W. , Charles:Perry of 506 loth Ave. S.E.; A resident of 29th St. N.W.; Wayne Price of 5710 25th Avenue N. W.; Jean Craznaki of 5908 24th Avenue N. W. A resident of 2024 23 1/2 ST. N. W. and Wayne Price5710 25th Avenue N. W.; Richard Peterson of 2743 59th St. N.W.' Jackie Payne of 1700 Northwood Dr. N.E. Don Ryan of 2925 7th Avenue N. W. ; Maggie Brimijoin of 1214 6th St. S.W. - Also ; Mike Landon of Property Manager Real'Estate in Rochester, RECORD OF OFFICIAL PROCEEDINGS OF THE COMMON COUNCIL 4342 CITY OF ROCHESTER, MINNESOTA Regular Meeting No. 8 - September 7, 1994 Agenda Item W Those in favor of the Project are as follows: Suzanne Snyder of the Housing Partnership;, Terry Williams of Cumpus gRartnership; Michael Gerber, Chairman of the Housing•Partnership, a representative of the'Habitat for Humanity was present and spoke in favor of this development. Jackie Trotter of 2417 5th Ave. N.W. and Jeff Gorfine of 2315 5th Ave. N.W. Michael Dey of 4929 22nd Ave. N.W. and Marsha Brown, League of Women Voters, Bruce Miller of 410 13th Avenue S.E., Maggie Brimijoin of 1214 6th St. S.W. The reasons for the opposition as stated on the petition was as follows: "Although I support efforts to assist needy families, I am opposed to the Bandel Hills housing project to be located north of 59th St. N.W. and east of Bandel Road N.W. for the following reasons: 1. Low-income housing needs can and should be met by utilizing or modifying existing vacant rental units. 2. Low-income housing assistance should be focused on home ownership not rental. These programs do exist and are available. 3. The Bandel Hills project is too costly. Many assistance options are available that are more cost-effective. 4. The project will place additional stress on Gage School which is already overcrowded. It will have negative impacts on Bandel Road, the neighborhood population density and the tenants themselves. A segregated grouping of identifiable low-income families is not an appropriate way to help individual families become a functional part of a neighborhood. " Letters in opposition were received from Duane Price from the Hunter Hills Area in Rochester, Mn. Letters in support were received from Bonnie Donelan-Dunlap of 2620 59th St. N.W. Supporting documents on file with the City Clerk are as follows: Report from the Blekre Company on Real Estate values etc. from 1700 North Broadway Suite 150 Roch.Mn. and SNG Research Corporation on Rental Unit Vacancy Assessment in Rochester, Mn. This corporation did a study on the vacancies in apartments in the City of Rochester. They did this with the cooperation of the mailpeople when they delivered mail. They asked questions pertaining to the vacancy rate in Rochester and this report was derived from that information. This is also on file with the City Clerk. Having no one else present that wished to be heard, President Hunziker closed the hearing. After lengthy discussion by the Council, McConnell moved, Myhrom second to table this. Councilmember McConnell stated that his reasons for tabling this indefinitely are: 1. Citizen participation. 1 RECORD OF OFFICIAL PROCEEDINGS -OF THE COMMON COUNCIL CITY OF ROCHESTER, MINNESOTA Reqular Meetinq No. 8 - September 7. 1994 4343 Agenda Item B-10 So many citizens have held meetings and have called in opposition. 2. The petition received with so many names in opposition and he has always honored petitions. 3. Numerous reports of a huge vacancy rate Rochester where additional funding may be had to help those people who need it. The showing of people in opposition at the meeting tonight who do not like this project. Councilmember Myhrom echoed Councilmember McConnells statement. Upon Roll call vote, Councilmembers Canfield, Evans, Senjem, Stabaughand President Hunziker voted nay. Nays (5), Councilmembers McConnell and Myhrom voted aye. Ayes (2), Motion did not carry. After further lengthy Council discussion Councilmember Canfield stated that this project will help 25 families, a small amount of the total of.needy people in the City, but he feels that it has to happen. Councilmember Myhrom disagreed and stated that cluster housing is not the mix Rochester needs and piling them all up in one place is wrong! Councilmember Evans stated that he feels "How can we help these people tonight that do not have housing? He feels that the people need help and this is a good way. Having no further discussion, Stobaugh moved, Evans second to adopt Reso.lution No. 479-94 approving the request. Ayes (5),Nays (2). Councilmembers McConnell and Myhrom voting nay. Motion carried. C-1-6 (Canfield moved, Stobaugh second to approve the following Consent Agen4a: C-1 (Approve the minutes of the August 15, 1994 meeting. C-2 Adopt Resolution No. 480-94 calling for a public hearing to be held Oct. 3, 1994 on the proposed initation of the process for Expansion of Downtown Development Dist. # 2 and Tax Increment Financing Amendments. C-3 Approve the following licenses and bonds: GAMBLING Turn In Poachers Raffle at Elks Lodge 1091 10-3-94 MASTER PLUMBER - Scott Burgess DBA Burgess Plumbing and Heating Norwoc MISC. STREET ACTIVITIES Mn. Homecoming Parade - John Marshall - 9-30-94 and Mayo High 9-23-94 Rochester Track Club - Bear Creek 6 mile Race - Take Back the Night March 9-17-94. Dn rRECORD OF OFFICIAL PROCEEDINGS OF THE COMMON COUNCIL 4344 CITY OF ROCHESTER, MINNESOTA -Regular Meeting No. 8 - September 7, 1994 Agenda Item C-4 C-5 C-6 E-1 E-2 E-3 E-4 E-5 E-6 Approve the Accounts Payable in the amount of $2,533,198.96 - file is in the City Clerk's Office. Approve the Reapportionment of Previously Levied Assessments J 8919 Plat 5111 Parcel 00216 $1,091.12 - Foxcroft North Third Sub. - Foxcroft Corporation. Adopt Resolution No. 481-94 deleting the following paragraph from Sec. C Special Parking Zones - Zone A. General - 1.1, 1.5,3.5,4.0,7.0 and 21. Ayes (7), Nays (0).Motion Carried. Canfield moved, Evans second to adopt Resolution No. 482-94 approving the Preliminary 1994 levy, budget and hearing dates. Ayes (5), Nays (2). Councilmembers McConnell and Myhrom voted nay. Motion carried. Stobaugh moved, Evans second to adopt Resolution No. 483-94 establishing the Council's Official Policy on Performance Based Compensation Program for Exempt Employees. After Council discussion McConnell stated that'he worked for years to have this abolished and now it is back. He is against this. Councilmember Myhrom stated that he agreed with McConnell. Councilmember Canfield stated that this does not determine that the City Adm. is included. The City Adm. is still reviewed by the Council. Councilmember Senjem stated that the Council can still set salaries by the resolution adopted at another time. The City Attorney stated that that statement was correct that this resolution is a budget process oriented resolution.and does comply with the Charter of the City of Rochester. Roll call vote was taken with Councilmembers Canfield, Evans, Stobaugh and President Hunziker voting aye. Ayes (4), Councilmembers McConnell, Myhrom and Senjem voting nay. Nays (3). Motion carried. Senjem moved, Stobaugh second to adopt Resolution No. 484-94 setting a hearing to be held on September 19, 1994 on the possible revocation of a'Liquor License held by Margaret Pfaff for Otto's on 307 South Broadway. Ayes (7), Nays (0).Motion carried. McConnell moved, Senjem second to approve of the disposal of the fire alarm boxes at the next City/County Auction: Ayes (7), Nays (0) Motion carried. Senjem moved, Stobaugh second to adopt Resolution No. 485-94 authorizing the participation in the State's Alternative Fueled Vehicle Program. Ayes (7), Nays (0). Motion Carried. Councilmember Evans noted that he owns a Service Station business. Senjem moved, Stobaugh second to adopt Resolution No. 486-94 approving the Revised Ariendment No. 1 to the Local Cooperation Agreement with the Corps of Engineers. This is with the Local Flood Control Program. Ayes (7), Nays (0).Motion carried. 1 RECORD OF OFFICIAL PROCEEDINGS OF THE COMMON COUNCIL CITY OF ROCHESTER, MINNESOTA Regular Meeting No. 8 - September 7, 1994 4 34 5 Agenda Item E-7 Senjem moved, Evans second to approve the Findings of Fact authorizin the extension of time for City Review of Rate information from GWC Seventy Three, Inc. (TCI) for an additional 90 days commencing Sept. 10, 1994. Ayes (7), Nays (0).Motion carried. E-8 Stobaugh mvoed, Evans second to approve the Findings of Fact that an unsecured window at 323 South Broadway represents a hazardous property condition which the owner has failed to correct. Order of the property owner to correct the hazard with the understanding that the City will seek summary enforcement through the courts if the is no compliance. Ayes (7), Nays (0).Motion carried. E-9 Senjem moved, Canfield second to Reimburse expenses - The Leonard Parker Associates (TLPA) in the amount of $7,890.89 associated with the Library Ramp, and Skyway Project. This taps the reimbursables from this company. The additional payment is for blueprints, fax copies,express delivery service etc. Ayes (7), Nays (0).Motion carried. E-10 Canfield moved, Myhrom second to approve the request for On -Sale Wine and 3.2 Beer from James J. Clark DBA Jimmy's Restaurant at 1611 Hwy 52 North. Ayes (7). Nays (0).Motion carried. E-11 Senjem.moved, Evans second to approve the request from Apache Mall Merchants Assoc. for a Temporary On -Sale Int. Liquor License for October 15, 1994. This is necessary for wine to be sold at their 25th anniversary party at Apache Mall. Ayes (7), Nays (0).Motion carried. E-12 Canfield moved, Stobaugh second to approve the 1994-199.5 on -sale 3.2 beer for the Rochester Sports Authority Inc. DBA Rochester Mustangs at the Recreation Center. Ayes (7), Nays (0).Motion carried. E-13 Evans moved, Canfield second to adopt Resolution No. 487-94 approving the Public Works Dept. to accept the low bid of Midwest Machinery Inc. in the amount of $12,577. for the purchase of one Portable Air Compressor. Ayes (7), Nays (0).Motion carried. E-14 Senjem moved, Stobaugh second to adopt Resolution No. 488-94 awarding the low bid of $36,780.00 to John Miller Landscaping and Excavation for CBD Snow Removal. Ayes (7), Nays (0).Motion carried. E-15 Evans moved, Senjem second to instruct the City Attorney to begin legal action against Action Portable Service , Inc. to bring the discharge of their waste into compliance with the City Ordinances and Federal Regulations and to seal off discharge facilities at 1928 32nd Ave. N.W. Ayes (7), Nays (0).Motion carried. E-16 Canfield moved, Evans second to adopt Resolution No. 489-94 approving a settlement of $25,000 for Acquisition of ROW from Till Property 19th St. N.W. Widening Project 6219-4-93 J 9269. Ayes (7)., Nays (0). Motion Carried. RECORD OF OFFICIAL PROCEEDINGS OF THE COMMON COUNCIL 4346 CITY OF ROCHESTER, MINNESOTA Regular Meeting No 8 - September 7, 1994 Agenda Item E-17 McConnell moved, Senjem second to adopt Resolution No. 490-94 awarding the low bid of $24,656.00 submitted by Road Constructors for Project 8403-94 J 9317 - San. Sewer Ext. alg N. Line of Lot 1 Block 1 Domaille Postier Sub. to serve areas N. and E. of Domaille Postier Sub. Ayes (7), Nays (0).Motion carried. E-18 Senjem moved, Evans second to adopt Resolution No. 491-94 and 492- 94 declaring the cost to be assessed and ordering a hearing to be held on October 3, 1994 on Project 6303-1-93-93 J 9172 - St. Reconstruction , Widening and Resurfacing on E River Rd. from 24th St. to N. City Limits and on 24th St. from E. River Rd. to TH 63. Ayes (7), Nays (0).Motion carried. E-19 Canfield moved, McConnell second to adopt Resolution No. 493-94 and 494-94 declaring the costs to be assessed and ordering a hearing to be held on October 3, 1994 on Project No. 7106-93 J 9263 - Bit. Overlay, Curb and Gutter on E Frontage Rd. TH 52 from 41st St. to 500 Ft. N. of Pennington Ct. N.W. Ayes (7), Nays (0). Motion carried. E-20 Senjem moved, Stobaugh second to adopt Resolution No. 495-94 approving the Assessment Agreement for Previously unassessed Impts. J 9166 Sewer and Watermain. Ayes (7), Nays (0).Motion carried. ( Chadwick ). E-21 SEnjem moved, Stobaugh second to adopt Resolution No. 496-94 approving an agreement the the Mn DOT to transfer jurisdiction to the City for two signals on Second St. S.W. from llth Ave. to TH 52. Ayes (7), Nays (0).Motion carried. E-22 Senjem moved, Stobaugh second to approve a proposal for Underground Electrical Service to the new T Hangar and General Aviation area in the amount of $20,888.91. Ayes (7), Nays (0).Motion carried. E-23 Canfield moved, Senjem second to adopt Resolution No. 497-94 awarding the low bid to Benike Construction in the amount of $69,083.00 for Entrance Welcome Signs J 2222. Ayes (7), Nays (0).Motion carried. F-1 An Ordinance Annexing to the City land in Cascade Township. This was given its first reading. Upon Roll call vote to suspend the rules and give this ord. and second reading was : Councilmember Canfield, Evans, McConnell, Myhrom, Senjem, Stobaugh and Pres.Hunzik r. Ayes (7), Nays (0).Motion Carried. The Ordinance was given its second reading. McConnell moved, Stobaugh second to adopt the Ordinance as read. Ayes (7), Nays (0).Motion Carried. F-1 McConnell moved, Stobaugh second to adopt Resolution No. 498-�_4 approving the Onwer Contract for.__'- Basic ' Constragft6'n _in* Kings Run Thi"rd"Sub.:- -.Road Constructors,'Inc. and Dakota of Roch.Inc. Ayes (7), Nays (0).Motion carried. 1 RECORD OF OFFICIAL PROCEEDINGS OF THE COMMON COUNCIL CITY OF ROCHESTER, MINNESOTA Regular Meeting No. H--�Rt�Z. 1994 4347 Agenda Item F-1 Stobaugh moved, Evans second to adopt Resolution No. 499-94 approving an owner contract for Basic Construction in Foxcroft N. Third Sub. with Foxcroft Dev-. and Elcor Construction, Inc. Ayes (7), Nays (0).Motion carried. G-1 Senjem moved, Canfield second to remove the Bids for Parking Ramp Snow Chutes from the table. Senjem moved, Stobaugh second to reject the bids and do a redsign of the signs. Ayes (7), Nays (0). Having no further business, Canfield moved, Senjem second to adjourn the meeting. Ayes (7), Nays (0).Motion carried. A City Clerk "I