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HomeMy WebLinkAbout2021-08-17 CC MINcU1 Iwa#er The Birthplace of Minnesota 216 4th Street N, Stillwater, MN 55082 651-430-8800 www.ci.stillwater.mn.us CITY COUNCIL MEETING MINUTES August 17, 2021 SPECIAL MEETING 3:30 P.M. Mayor Kozlowski called the meeting to order at 3:32 p.m. Present: Mayor Kozlowski, Councilmembers Collins, Junker, Odebrecht, Polehna Absent: None Staff present: City Administrator McCarty Administrative Assistant Manos Community Development Director Gladhill Finance Director Provos Deputy Fire Chief Ballis IT Manager Holman Human Resources Manager Robole Police Chief Mueller Public Works Director Sanders Library Director Troendle OTHER BUSINESS Preliminary 2022 Budget Workshop City Administrator McCarty and Finance Director Provos presented the 2022 Budget Recommendations. The proposed 2022 operating levy increase is $766,664 or 6.80% above the 2021 adopted tax levy. The total 2022 property tax levy increase (operating levy + debt service levy) is proposed to increase by $982,271 or 6.57% over 2021. The total proposed 2022 budget (all funds) is approximately $45,000,000. The City Council must adopt a preliminary 2022 budget and certify the maximum City property tax levy to the County by September 30, 2021. The City Council must also schedule the December 2021 date for the Truth in Taxation meeting for adoption of the final 2022 Stillwater City budget. Department heads were present to answer Council questions. IT Manager Holman stated that in 2022, staff will review enterprise software packages with the goal of selecting an appropriate package that will ultimately get everyone working from the same base. The plan is to select the software in 2022 and implement it in 2023. Next year, the Microsoft Office Suite and exchange server will be moved to the Cloud, which will increase Microsoft costs by about $20,000 a year. Not everything will be able to be moved to the Cloud; there are regulations for certain types of information, for instance the Police Department may use only those places that are approved by the BCA. Police Chief Mueller explained the Police Department is requesting the addition of a captain who will be a visible presence downtown, and a crisis response -specific position. Woodbury, Cottage Grove and possibly Washington County are moving toward hiring mental health professionals, which is a good long term approach. He envisions another City Council Meeting August 17, 2021 captain coming on board after the operational review. There are great candidates at the sergeant level, so he sees no need to advertise externally. Mr. McCarty stated that the Fire Department had requested three FTE positions, but one is being recommended. The part time paid on -call model is probably unsustainable for the future. A department review is not budgeted for, but is worth considering. Deputy Fire Chief Ballis confirmed that the Fire Department has not been fully staffed on the paid on -call side since 2007. There are currently eight openings. Mr. McCarty stated administration is not recommending funding the additional FTE requested in Building Inspection, but instead budgeting for review fees to hire a third party to fill the gap. Community Development Director Gladhill added that using contracted services is not ideal, due to new enforcement code requirements and other issues. Staff will continue to look at shared positions and self-service options. He added that his role has changed from his predecessor in focusing more on economic development. Public Works Director Sanders explained that the requested new Public Works employee will be split 50/50 between parks and streets. Mr. McCarty went on to explain the general fund budget, special revenue funds, special events fund, and St. Croix Valley Recreation Center special revenue fund. St. Croix Valley Recreation Center Manager Doug Brady explained the soccer club pledge structure. Mr. McCarty reviewed the library special revenue fund. Library Director Troendle told the Council the Library Board chooses to invest in staff in 2022, by moving supervisors from 36 to 40 hours per week and increasing two union positions from 18 to 20 hours a week, making them eligible for 50% prorated health insurance. Mr. McCarty summarized the parks fund, community beautification fund, and lodging tax; and Finance Director Provos explained the enterprise funds. Councilmember Junker asked if COVID relief funds can be incorporated into the budget. Mr. McCarty stated the COVID funding will be discussed at the next budget workshop. Since it is one-time funding, he would not recommend incorporating it into the operating budget. The next budget workshop will be September 7. RECESS Mayor Kozlowski recessed the meeting at 5:51 p.m. REGULAR MEETING 7:00 P.M. Mayor Kozlowski called the meeting to order at 7:00 p.m. Present: Mayor Kozlowski, Councilmembers Collins, Junker, Odebrecht, Polehna Absent: None Staff present: City Administrator McCarty City Attorney Land Administrative Assistant Manos Page 2 of 10 City Council Meeting August 17, 2021 Community Development Director Gladhill City Planner Wittman Finance Director Provos Deputy Fire Chief Ballis Police Chief Mueller Public Works Director Sanders PLEDGE OF ALLEGIANCE Mayor Kozlowski led the Council and audience in the Pledge of Allegiance. RECOGNITIONS OR PRESENTATIONS Discover Stillwater Report and Selfie Statue Request, Christie Rosckes, Director Christie Rosckes, Director, explained the tourism marketing strategic plan and reported on the CVB Lodging Tax revenues. April, May and June 2021 was the best spring ever in terms of lodging tax revenues, up 218% since the same quarter of 2020 and up 15% compared to the highest year on record. She presented a preliminary concept for a permanent promotional Stillwater sculpture selfie sign, and requested Council approval to proceed. Councilmember Polehna noted there may be strict historic guidelines for what is allowed to be placed in Lowell Park. City Planner Wittman stated any public improvement project downtown would need Heritage Preservation Commission approval. She recommended that they work with Public Works in choosing the location. Councilmembers voiced support for the sculpture. Motion by Councilmember Odebrecht, seconded by Councilmember Junker, to approve in concept the placement of a Stillwater selfie sculpture in Lowell Park. All in favor. Wild River Conservancy Presentation on Proposed Hog Facility in Town of Trade Lake. Wt Mayor Kozlowski stated there has been a lot of media coverage of this proposed hog farm and its possible impact on the St. Croix River. He would like more information to better be able to respond to constituents. Deb Ryun, Executive Director, Wild Rivers Conservancy, explained that Cumberland, LLC applied for a permit to build a 26,000 hog farrowing operation near Trade Lake, Wisconsin. There are well documented environmental, economic, ecological and social negative consequences associated with large scale animal production. It is estimated that the pigs will produce about 13 million gallons of waste annually. The manure would be stored on the 38-acre site then spread on nearby farm fields. Any contamination will move extremely quickly through the system to the St. Croix River. A Town Partnership Project comprised of six towns is proposing a large livestock facility ordinance with ten conditions that would be specific to the plant to ensure there are no long term damaging results if the permit is granted. Mayor Kozlowski asked what residents and others who enjoy the river can do to help; and Ms. Ryun answered they can let Polk and Burnett County officials know that they are watching and concerned. The permit was denied and the corporation will have to reapply Page 3 of 10 City Council Meeting August 17, 2021 due to a siting issue with wetland. When they have reapplied, the Wisconsin Department of Natural Resources will ask for public comment. Proclamation - Eagle Scout Meg Balfanz Mayor Kozlowski recognized Ms. Balfanz for attaining the rank of Eagle Scout. Certificate of Appreciation - Lift & Loop Committee Members and Donors Mayor Kozlowski and all Councilmembers thanked all those responsible for carrying out the Lift & Loop event, and presented Certificates of Appreciation. Councilmember/Lift & Loop Committee Chairman Polehna thanked all who worked so hard on the event. OPEN FORUM Cam Murray updated the Council on Main Street pedestrian crossing flags. The Minnesota Department of Transportation stated that the only two things that would be allowed at the intersection crossing Highway 95 are a flashing beacon (approximate cost $22,000), or a pedestrian hybrid beacon (cost $60,000). Apparently the City of Bayport just decided to put the flags out. This is an option, or leave the situation as is. No action was taken. STAFF REPORTS Police Chief Mueller reported that the Lift & Loop event went well with no significant public safety issues. The Department continues to be visible and engage with the community and the Downtown Precinct is busy. He urged residents to call 911 for any policing issues. The Department has budgeted mental health precautions for officers. Councilmember Polehna complimented the Department on being very well prepared for the Lift & Loop Celebration. Community Development Director Gladhill informed the Council that the committee reviewing the tax increment financing request for the 200 Chestnut Apartments will meet tomorrow to formulate a recommendation for the Council. Staff is meeting with the team working on Lakeview Hospital's future campus plans. There has been an issue with kids accessing the Lowell Inn roof from the parking ramp. Minor changes have helped, and a guardrail may be added. City Administrator McCarty reported that the King Plant Advisory Council will reconvene tomorrow. He stated the City's tax abatement request to Washington County for Central Commons has been scheduled for a Washington County Board meeting on August 24. CONSENT AGENDA Payment of Bills Gambling Application for Bayport American Legion at Lowell Park Great River Greening Contract for Lumberjack Landing Vegetation Management Plan Resolution 2021-105, A Resolution Approving the Development Agreement for Marylane Gateway Addition, Case No. 2021-4 Northern Bedrock Agreement for Historic Wood Window Repair Demonstration Videos Rethos Agreement for Historic Wood Window Repair Demonstration Videos Sanitary Sewer Adjustments Page 4 of 10 City Council Meeting August 17, 2021 Motion by Councilmember Junker, seconded by Councilmember Polehna, to adopt the Consent Agenda. All in favor. PUBLIC HEARINGS CPC Case No. 2021-46 to consider an appeal request by Nathan Landucci, applicant on the Heritage_ Preservation Commission's Design Permit and Planning Commission Variance. Property located at 107 Third St N and 110 Myrtle St E. City Planner Wittman stated that Landucci Homes is proposing to construct a 39-unit apartment building at 107 Third Street North. A new plan submitted yesterday, not yet fully reviewed, reduces the number to 37. The residential use, as well as Large Building Projects in the Central Business District (CBD), require a Conditional Use Permit. Portions of the building are proposed to be 4.5 stories and 48.5' tall (as measured from Third Street North). This exceeds the maximum allowable three stories and 37' height in the Historic Height Overlay District. The applicant requested variances to the CBD Setbacks and the Height Overlay standards. The development requires a total of 74 parking spaces onsite. In addition to retaining the attached, two -car garage for the single-family residence, the developer is proposing to construct four uncovered, tandem spaces outside the building at the entrance to the garage, 20 underground spaces, and an additional 35 enclosed spaces in two different KLAUS Multiparking machines. Therefore, 24 spaces are 'standard', 35 are requested to be approved utilizing alternative provisions, and 13 are requested to be waived. The applicant is also asking for City consideration of a transfer of 40 `parking credits' granted to the current landowner. The Historic Preservation Commission (HPC) considered an updated plan on July 21, 2021 and ultimately denied the Design Permit for the current proposal but indicated a willingness to consider a similar project at three stories tall. The Downtown Parking Commission (DTPC) considered the request on June 23 and July 15 and noted the plan was not in conformance with adopted City Code and unadopted DTPC mitigation policy. The DTPC expressed concern that the KLAUS Multi -parking system may not conform to City Code requirements and that consideration of whether it does or not, as well as the 40-space credit transfer, was outside the DTPC's scope. The DTPC recommends all parking be located onsite. The Planning Commission (PC) reviewed the request in June and July. Commissioners noted they appreciated the addition of residential uses in the downtown area and the 'out of the box' parking solution. However, it was noted the height and mass of the structure are too large for the site and there are traffic safety concerns with too many units near this intersection. Thus, the PC denied the variances and recommended the Council deny the Conditional Use Permit. The City has received public comment from Trinity Lutheran Church and the Steeple Towne's Home Owner's Association asking that the City deny the requested actions. A comment from Catherine and Mark Balay, property owners, voiced support of a project that can balance new construction with preservation of historic resources. City staff believes a modified design that reduces the building's overall height, mass and bulk on both Third Street North and Myrtle Street West would be more conforming to the City Code. Therefore, staff recommends the Council table consideration until September 7, allowing staff to continue to work with the applicant on potential design changes. Since the time of packet distribution, the applicant submitted a redesigned plan which has not been fully reviewed. Page 5 of 10 City Council Meeting August 17, 2021 Councilmember Polehna pointed out that tonight's agenda item is an appeal of the Commissions' recommendations for denial. He questioned why Councilmembers should react to the revisions submitted yesterday without going to the Commissions first; and Ms. Wittman answered that staff advised the applicant the new submission would be provided to the Council for discussion, but there would not be enough time before tonight's meeting to make a recommendation on the new design. Mayor Kozlowski inquired how many residential and guest parking spaces are required; and Ms. Wittman replied that for 39 units, 59 spaces plus 13 guest spaces would be needed. All 59 are being proposed onsite but a majority of them are in the stacking system. The 13 guest spaces are not being accounted for anywhere on the site. For these spaces, the applicant is asking to use the credit assigned to the property. City Attorney Land explained there was an agreement with Trinity Lutheran to credit the church with the 40 spaces that could be transferrable with the consent of the Council. If allowed to be transferred, it was intended that the credit would be used for the post office. The Council consented to the transfer of the credit of those 40 stalls to that property owner. There is no provision in the agreement to transfer them again; it stopped with the current owner. Unless the Council chooses to go back and amend the agreement, there is no ability to transfer those credits to a different property owner. Mayor Kozlowski restated that the intent was to let the post office use the 40 spaces based on their users and required parking, not to park 40 residents there 24/7. Ms. Wittman added that there was also concern from the DTPC that there is no overnight public parking near the site and the draft parking mitigation policy is not done yet. Mayor Kozlowski opened the public hearing. Nathan Landucci, applicant, stated the original proposal for the site, a condo project proposed by Jon Whitcomb, has the same essentials as the brand new design submitted yesterday. He is now proposing to use the 4th floor for the same amenities that were approved with the previous condo plan: bathroom, storage closet, two stair bulkheads, elevator lobby, and green space. The height variance being requested is almost identical to what was approved on the previous project. This project is the same height as the recently approved Reuter Walton site on Chestnut Street. When he signed the purchase agreement he understood there is a City obligation to allow for additional parking that was grandfathered in. The project currently meets the required 1.5 parking spaces per unit, for residents, on site. The stacking system proposed is a simple operation that has been used for 30 years. If one of the components went down with a mechanical failure or power outage, it would only impact the cars above or below it. He is asking for mitigation for 12 guest parking spaces. He is willing to consider the $20,000 mitigation per stall if the grandfathered parking does not pan out. Currently the ramp right next door to this property has no overnight parking. Maybe the City would consider allowing 10 overnight spaces for some of this guest parking. He stated traffic flow will be right -in using the Balay driveway, and right - out onto Myrtle so traffic will never cross the intersection. On a question by Mayor Kozlowski, if the existing Balay house would be able to be built today on its current lot, in the absence of this proposal, because he is concerned about how odd the house will look next to the apartment building; and Ms. Wittman responded that the Page 6of10 City Council Meeting August 17, 2021 applicant is not proposing a subdivision. If it had been subdivided, it may be buildable, but a zoning code analysis has not been done. Community Development Director Gladhill added, if this was a legal nonconforming lot, its small size would mean a new home built on it would be much smaller than the home that is there today. Councilmember Junker commented that drivers going down Myrtle Street heading east who want to get into the apartment building would be crossing traffic to make a left turn. Mr. Landucci replied that signage and curbing would not allow vehicular access from the east. Drivers would have to go around the block to Main Street and head up the hill. There would be curbing so that vehicles could not enter from the west without hopping the curb. Public Works Director Sanders added that a traffic engineer reviewed the site plan and traffic for the previously proposed Whitcomb development. He does not think any decision was made. He asked whether the Balay property tenants would drive through the building to get out of the site; and Mr. Landucci answered that they probably they would. Deputy Fire Chief Ballis stated that Fire Code would not allow a curb stop where Mr. Landucci is suggesting, because emergency access must be maintained. The right -in, right - out restriction would have to be enforced via educating residents, not a curb. Mr. Landucci added that the Balays really like this proposal because it maintains the historic house, which will be rented with tenants having access to amenities of the development. Landscaping will provide a buffer between the building and the house. Mayor Kozlowski asked if the house can be moved; and Ms. Wittman answered that it could not be moved without reviews, and staff would view it almost as equivalent of demolition. Historically, the best location for the house is where it is. Steven Wahlquist, 121 N Martha Street, noted that parking in Stillwater is in short supply. He is concerned about not requiring the developer to have guest parking on site. Also, the mass of the building, with the surrounding churches and steeples, does not fit the neighborhood. The Third/Myrtle intersection is scary at best. He encouraged the Council to deny it or require the project be downsized in order to get guest parking on site. Thomas Haugrud, member of Trinity Lutheran Church Council, stated the Church Council reviewed the plan and submitted its concerns to Planning Commission in June. Today the Church Council updated that letter. Trinity is concerned with the size of the development and shares the concerns noted in the planning report, particularly the height, overall scale, parking and traffic issues. Mayor Kozlowski closed the public hearing. Mayor Kozlowski commended Mr. Landucci on his willingness to work with Commissions, Council and staff. He supports some building on this site, but finds it hard to justify the height variance. The height and massing looks way out of place. The project as proposed looks terrible next to the house. He agrees with concerns about parking. He would be willing to have discussions to try to mitigate the lack of guest parking. He predicts residents will disregard signage, making the area more dangerous, considering the angle of the hill and how people drive there. He would like to keep the conversation going. Page 7of10 City Council Meeting August 17, 2021 Mr. Gladhill reiterated staff's recommendation, if the Council wishes to keep working with the developer, to table the application so staff can continue negotiations, check back in with the Commissions, and bring back more information. For full disclosure, he noted there is a TIF application associated with this project also. Councilmember Polehna again noted that tonight's agenda item was to act on the appeal. Ms. Wittman stated if the appeal is denied tonight, the applicant would have to bring back a substantially different application within one year. Councilmember Junker remarked that the project that was approved a couple years ago was an 11-unit apartment building, versus this proposal for 37 units. The 11-unit proposal raised a number of traffic issues. Additionally, now there will be 61 new units a block away on the corner of Myrtle Street, which is a major artery and often has traffic backed up. The issue of massing has come up in every Commission meeting. He is not interested in selling any of the City land as requested, to make this work. Councilmember Odebrecht noted it would be hard to vote against the recommendations of three Commissions, in addition to the church. However. Mr. Landucci has done a great job modifying the plans and working with the Commissions. The project is just not there yet. Motion by Councilmember Junker, seconded by Councilmember Collins, to deny the appeal request by Nathan Landucci, applicant, on the Design Permit, the Use Permit, and the Variance for 107 Third St N and 110 Myrtle St E. All in favor. UNFINISHED BUSINESS There was no unfinished business. NEW BUSINESS Approve Plans and Specs for the 2021 Sidewalk Project Public Works Director Sanders summarized the 2021 sidewalk project. Staff recommends that the Council approve the plans and specifications. Motion by Councilmember Polehna, seconded by Councilmember Junker, to adopt Resolution 2021-106, Approve Plans & Specifications for 2021 Sidewalk Improvement Project (Project 2021-06). All in favor. Declare Cost and Order Hearing on Assessments for the Neal Avenue Phase 2 Project Mr. Sanders reported that Phase 2 of the Neal Avenue improvement Project should be completed by the end of October 2021. The total cost of the project is $1,771,677.44. Staff recommends that Council declare costs, authorize the preparation of the assessment rolls, and call for a hearing on Phase 2. Motion by Councilmember Odebrecht, seconded by Councilmember Junker, to adopt Resolution 2021-107, Resolution Declaring Cost to be Assessed and Ordering Preparation of Proposed Assessment for Neal Avenue Improvement Project Phase 2 (Project 2019-08); and to adopt Resolution 2021-108, Resolution Calling for Hearing on Proposed Assessment for Neal Avenue Improvement Project Phase 2 (Project 2019-08). All in favor. Page 8 of 10 City Council Meeting August 17, 2021 Order Feasibility Stu Sly for 2022 Street Improvement Project Public Works Director Sanders stated that engineering staff would like to proceed with the 2022 Street Improvement Project. The total length of the streets to be improved is 3.81 miles. Staff recommends the Council authorize the preparation of a feasibility study. Motion by Councilmember Collins, seconded by Councilmember Polehna, to adopt Resolution 2021-109, Resolution Ordering Preparation of Feasibility Report for 2022 Street Improvement Project (Project 2022-02). All in favor. Nomination for the browns Creek Watershed District Board (BCWD) Mr. McCarty stated the BCWD has manager positions due for reappointment. Two applications were received, and the incumbent is interested in being reappointed. Motion by Councilmember Polehna, seconded by Councilmember Collins, to forward all three applicant names to Washington County for consideration. All in favor. Fire Department Refurbish Request for Ladder Truck and Purchase Request for UTV Response Vehicle Deputy Fire Chief Ballis stated that the ladder truck will be 20 years old in 2022. Capital Outlay funds for its refurbishment are included in the 2021 Fire Department budget. A bid was received in the amount of $129,945. He also stated that a UTV response vehicle is needed to respond to special events involving large crowds throughout the downtown area. Capital Outlay funds are included in the 2021 Fire Department budget. A bid of $28,604 was received. Motion by Councilmember Odebrecht, seconded by Councilmember Collins, to approve the request for the expenditure of funds for rehabilitation of the ladder truck. All in favor. Motion by Councilmember Collins, seconded by Councilmember Polehna, to approve the request for the expenditure of funds for the purchase of the UTV response vehicle. All in favor. General Obligation Capital Outlay Bonds Sale Finance Director Provos presented a resolution to solicit proposals for the sale of capital outlay bonds. Motion by Councilmember Junker, seconded by Councilmember Polehna, to adopt Resolution 2021-110, Resolution Providing for the Competitive Negotiated Sale of $2,760,000 General Obligation Capital Outlay Bonds, Series 2021A. All in favor. Stillwater Armory Lease Agreement Mr. McCarty reported that after two years of discussions with the National Guard, there is a proposed amendment for a three year addendum to the agreement for use of the Readiness Center. Motion by Councilmember Polehna, seconded by Councilmember Junker, to adopt Resolution 2021-111, Resolution Approving Amendment No. 1 to Agreement between the State of Minnesota, Department of Military Affairs and the City of Stillwater to Lease Space. All in favor. Page 9 of 10 City Council Meeting August 17, 2021 COUNCIL REQUEST ITEMS Councilmember Polehna updated the Council on Beyond the Yellow Ribbon activities. The 34th MPs who returned from Guantanamo Bay enjoyed a picnic. The yard of a disabled Afghanistan veteran in Lake Elmo has been landscaped and irrigated by volunteers. ADJOURNMENT Motion by Councilmember Junker, seconded by Councilmember Collins, to adjourn. All in favor. The meeting was adjourned at 9:20 p.m. Ted Kozlowski, Mayor ATTE T: Beth Wolf, City Clerk Resolution 2021-105, A Resolution Approving the Development Agreement for Marylane Gateway Addition, Case No. 2021-4 Resolution 2021-106, Approve Plans & Specifications for 2021 Sidewalk Improvement Project (Project 2021-06) Resolution 2021-107, Resolution Declaring Cost to be Assessed and Ordering Preparation of Proposed Assessment for Neal Avenue Improvement Project Phase 2 (Project 2019-08) Resolution 2021-108, Resolution Calling for Hearing on Proposed Assessment for Neal Avenue Improvement Project Phase 2 (Project 2019-08) Resolution 2021-109, Resolution Ordering Preparation of Feasibility Report for 2022 Street Improvement Project (Project 2022-02) Resolution 2021-110, Resolution Providing for the Competitive Negotiated Sale of $2,760,000 General Obligation Capital Outlay Bonds, Series 2021A Resolution 2021-111, Resolution Approving Amendment No. 1 to Agreement between the State of Minnesota, Department of Military Affairs and the City of Stillwater to Lease Space Page 10 of 10