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HomeMy WebLinkAbout2021-09-21 CC MINSti !1w4er The Birthplace of Minnesota 216 4th Street N, Stillwater, MN 55082 651-430-8800 www.ci.stillwater.mn.us CITY COUNCIL MEETING MINUTES September 21, 2021 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 City Clerk Wolf Community Development Director Gladhill City Planner Wittman Finance Director Provos Fire Chief Glaser Police Chief Mueller Public Works Director Sanders Assistant City Engineer Abdullah PLEDGE OF ALLEGIANCE Mayor Kozlowski led the Council and audience in the Pledge of Allegiance. RECOGNITIONS OR PRESENTATIONS Certificates of Appreciation - Beyond the Yellow Ribbon Program Projects Councilmember Polehna explained that the Beyond the Yellow Ribbon Committee of Washington County coordinated a project to landscape the yard of a disabled veteran. He thanked the following individuals and groups for their donations and assistance: Stillwater Elks; Coach Greg Zanon and the Stillwater High School Hockey Team; Kevin Mann, KLM Farms Inc.; Lake Elmo Beyond the Yellow Ribbon Program and Wildflower Neighborhood; Chris Ryberg, Leading Edge Landscaping; and Tom Magnafici, Water Works Irrigation. He also recognized Stillwater VFW Post 323 Auxiliary for their generous contribution of $500 toward the National Guard Picnic. �i'oclamation United Way Mayor Kozlowski read a proclamation designating October 4-8 as United Way Week. Superintendent Lansfeldt, Stillwater Schools 2021 Levy Referendum, Superintendent Lansfeldt showed a presentation explaining the 2021 Levy Referendum and the two ballot questions: 1) Replacement levy to maintain quality learning; and 2) Technology levy to provide kids the tools they need to learn. The tax impact on the average homeowner would be $11.50 more per month if voters approve both questions. City Council Meeting September 21, 2021 Acceptance of Donation for Conversion of Lumberjack Landing Building City Planner Wittman shared that Stillwater resident Geri Freels is donating $1 million for the conversion of the Aiple residence to a park building. Ms. Freels will donate $800,000 in 2021 and $200,000 in the form of a charitable trust, payable to the City of Stillwater upon Ms. Freels' death. Mayor Kozlowski conveyed the City's tremendous gratitude for Ms. Freels' generosity. Motion by Councilmember Polehna, seconded by Councilmember Junker, to adopt Resolution 2021-125, A Resolution Authorizing the City of Stillwater to Accept a Donation from Geri Freels for the Conversion of the Aiple Residence to a Park Building for Public Use. All in favor. OPEN FORUM Mary Harold, Third Street North, asked the Council to consider allowing golf carts and UTVs on all City streets. Mayor Kozlowski noted that a state highway runs through downtown and there are many County roads in the City, which may have different rules, making it more challenging. Police Chief Mueller stated there are a couple existing permits that specifically designate what streets may be used. The Department would have safety concerns about topography and so on, but will continue to look at the issue more broadly. STAFF REPORTS Public Works Director Sanders reported that bicycle racks have been installed downtown. Councilmembers Polehna and Junker thanked the Public Works Department for the pickleball courts at Northland Park. Police Chief Mueller recognized Detective Sandra Vetsch who works with Stillwater students. He stated the Public Safety team will participate in a Law Enforcement Torch Run on September 22 downtown. He updated the Council on interactions with local groups. Fire Chief Glaser noted Fire Prevention Week October 3-9 with an open house and Blood Drive October 9. Councilmember Junker praised the painting of the fire hydrants. Finance Director Provos stated the department is planning to have the sewer/water bills be combined as of January. Community Development Director Gladhill stated the Downtown Parking Commission will meet with the Council October 5. There will be an EDA workshop October 19. He provided updates on Bridgeview Park and the Chestnut Street Plaza project. Temporary outdoor seating permits expire November 1. City Administrator McCarty provided a COVID-19 workplace update. OSHA will notify entities that have more than 100 employees whenever vaccine regulations are implemented. CONSENT AGENDA September 7, 2021 regular and recessed meeting minutes Payment of Bills Page 2 of 9 City Council Meeting September 21, 2021 Background Checks Ordinance Amendment - Ordinance 2nd Reading CPC Case 2021-30 Zoning Text Amendment for Creation of a Neighborhood Commercial Zoning District - Ordinance 2nd Reading CPC Case 2021-47 Zoning Text Amendment to allow an Emergency Medical Services Garage to be located in the BP -I zoning district - Ordinance 2nd Reading Fire Code Ordinance Amendment - Ordinance 2nd Reading Health & Dental Group Insurance for 2022 - Resolution Nuisance Ordinance - Ordinance 2nd Reading OSHA and Safety Training Agreement with SafeAssure - Resolution Purchase Request of Ceiling Microphones for Conference Room 213 Sanitary Sewer Adjustments Temporary Liquor License for Valley Chamber Chorale Temporary Liquor License for Washington County Courthouse Washington County Recycling Grant Incentive Funding Agreement Appointing 2021 General Election Judges - Resolution Amending 2021 Fee Schedule - Resolution Motion by Councilmember Junker, seconded by Councilmember Collins, to adopt the Consent Agenda. All in favor. PUBLIC HEARINGS CPC Case 2020-60 on the proposed establishment of Tax increment Financing (TIF) District 14 within Development District No. 1 and the proposed adoption of a TIF Plan for 200 Chestnut Street Community Development Director Gladhill stated that on May 4, 2021, the City Council approved a series of applications related to the proposed 200 Chestnut Apartment Development, a 4-story, 61-unit apartment with 72 underground parking stalls. The City is now reviewing a request for Tax Increment Financing (TIF). The Developer is requesting assistance in the amount of $2.2M (net present value) paid over 16 years. Adjusted for inflation over the life of the District (4% annually), total increment paid to the project is approximately $3.2M. A parking mitigation fee to mitigate the 39 parking space deficit was negotiated with the developer and was included in the Tax Increment Financing request. But -for this assistance, this project in this capacity would not likely move forward. He explained how TIF works, outlined the unique extraordinary costs associated with this project, and summarized the protections for the City. The City Council will have associated actions to take on the TIF Agreement and Development Agreement at a future meeting, once the TIF Plan is approved. The City Council Tax Committee (Councilmembers Junker and Polehna) recommends approval of the Tax Increment Financing Plan in the amount of $2.2M (net present value) for a period of 16 years. Mayor Kozlowski opened the public hearing. Ari Parritz, Reuter Walton, representing the developer, thanked the Council and staff for their efforts. He stated groundbreaking is targeted for this winter with opening a year later. Mayor Kozlowski closed the public hearing. Page 3 of 9 City Council Meeting September 21, 2021 Councilmember Odebrecht pointed out that taxes will be paid on the project regardless of the use of TIF, and the "but -for" test allows the City to have a project that will help meet 2040 housing needs as well as helping fund construction of a future parking ramp. Councilmembers Polehna and Junker commended the development team and the bond counsel on the negotiation process. Motion by Councilmember Junker, seconded by Councilmember Polehna, to adopt Resolution 2021-130, Resolution Approving the Modification to the Development Program for Development District No. 1 and Establishing Tax Increment Financing (Redevelopment) District No. 14 Within Development District No. 1 and Approving the Tax Increment Financing Plan Therefor; and Authorizing an Interfund Loan. All in favor. Project 2019-08 Assessment Hearing for the Neal Avenue Improvement Phase 2 Project Assistant City Engineer Abdullah stated that Phase Two of the Neal Avenue Improvement Project is near completion with only the final layer of pavement and striping remaining to be done next year. The feasibility estimate for the project was $1,854,788 and the final project cost is estimated to be $1,771,677. There were slight variations in the final assessment amounts. The appraisals were slightly higher than the estimated assessments. Staff recommends that the Council hold the assessment hearing, adopt the assessment roll, and change the payoff term for properties with assessments over $12,000 to 15 years. Councilmember Polehna asked about variations in assessment amounts; and Mr. Abdullah answered that some properties were assessed only for street work, not sewer and water. Properties that were previously on wells and septic systems get assessed 100% for watermain and sewer main. Mayor Kozlowski opened the public hearing. Susan Eskierka, 7959 Neal Avenue North, explained she is subdividing her property into two sections to place it on the market, so she previously asked for a firm number on the assessment for the second lot. She was given an assessment estimate of $12,000 in writing in June and now instead of a total combination of $33,000, it went up to $39,000. She feels the $6,000 increase is unfair. Mr. Abdullah stated he made an error in doing the initial calculation and went by the value charged to the properties for hookup. It is the new buyer who will apply for the permit to connect, and the cost will be charged at that time. Public Works Director Sanders added that the property owner will be charged to hook up to City sewer and water. There will be additional SAC and WAC charges. The $17,000 would be due at the time a new property owner gets a building permit. Mayor Kozlowski closed the public hearing and pointed out the assessments account for only about 20% of the project costs due to other funding. Motion by Councilmember Collins, seconded by Councilmember Odebrecht, to adopt Resolution 2021-131, Adopting Assessment for Neal Avenue Improvement Project — Phase Two Project 2019-08, L.I. 430. All in favor. Page 4 of 9 City Council Meeting September 21, 2021 UNFINISHED BUSINESS CPC Case 2021-16 Right of Entry Approval for Lot 4 Block 11 Sabin's Addition to Stillwater City Planner Wittman reported that in April of this year, the Council heard a request from Tyler Morris for encroachment into the platted but undeveloped William Street North right- of-way with a private driveway. The Council tabled consideration of the agreement until utility extensions were determined. Mr. Morris is now seeking approval of right -of -entry for the construction of a private driveway, raingarden and utilities to be installed in the platted but undeveloped William Street North right-of-way. While this request is not common, this is the best mechanism to use to allow the private property owner to access his legal, non- conforming lot of record. If the City denied the right -of -entry, the owner would not be able to improve the property. Thus, staff is recommending the Council approve the right -of -entry request. Property owner Tyler Morris thanked staff for their assistance. He expressed extreme frustration about the process, saying he understood he would be here today to complete the driveway encroachment. He feels the driveway entry agreement is good only for 180 days and will accomplish nothing because in 180 days, the City has the ability to deny the encroachment and make him pull out the improvements done to that point. He reviewed the history of his interactions with the City. On Friday he heard it was going to be right of entry and not the encroachment he had been working for since July 2020. He submitted a legal description today as requested, but it is not in tonight's agenda packet. City Attorney Land stated that the Council authorized an encroachment agreement for an unopened right of way in April. City staff did not hear anything from Mr. Morris until September and suddenly his emergency became the City's emergency. Staff must make sure the City is protected. It is not possible to finalize an encroachment agreement with the legal description that protects the City in a few hours time. It will be done as soon as construction plans are submitted to the City and approved. Mr. Morris apologized for the delay in getting surveys to the City. Mayor Kozlowski asked if the encroachment agreement or right of entry approval help speed things along; and Ms. Wittman replied the right of entry would allow Mr. Morris to access the site and start constructing improvements. The encroachment agreement could come back before the Council as early as the next meeting. She apologized that she indicated to Mr. Morris that if staff had that legal description, the encroachment agreement might be on tonight's agenda. Ms. Land stated she is willing to review the legal description in time for the next Council meeting, solely for the driveway and the raingarden, not the other utilities. Ms. Wittman added that Mr. Morris understands that staff prefers to enter the encroachment agreement after the utilities are installed in order to have "as -built" depictions exactly where the utilities are located. So there will be three agreements: right of entry (tonight), encroachment agreement (in two weeks), and a deed restricted document tied to property in perpetuity. After all utilities are installed, Mr. Morris would come back with an "as -built" survey for the utilities for another encroachment agreement specifically for the utilities. Page 5 of 9 City Council Meeting September 21, 2021 Motion by Councilmember Odebrecht, seconded by Councilmember Collins, to adopt Resolution 2021-137, A Resolution Approving a Right of Entry Agreement Relating to Landowner Improvements Associated with Lot 4, Block 11, Sabin's Addition CPC Case No. 2021- 16. All in favor. NEW BUSINESS Potential Fence Violation at 602 Churchill St W Community Development Director Gladhill stated that the City received a complaint that a six-foot fence was being built in the front yard of the property at 602 Churchill Street West. City records did not indicate that a fence permit had been approved. On August 27, 2021, Zoning Administrator Tait confirmed there was in fact a new six-foot fence built in the front yard which was actually constructed in the City Right -of -Way (ROW) along the edge of the sidewalk. Staff sent the property owner a letter requesting that they remove the fence, or shorten the height of the fence and submit a fence permit. Subsequently, the property owner called to explain that they were only replacing a fence that had been there since they purchased the house decades ago. Staff is seeking guidance from the Council on how to proceed. If it remains in the ROW, a ROW encroachment agreement should be initiated. Councilmember Junker confirmed the fence has been there 40+ years. He stated there are many steps, porches and fences near the ROW in the neighborhood. He pointed out the fence is not blocking the house but appears to be more in the side yard. City Attorney Land stated property owners need to understand it is in the City ROW and if the City needs to get onto the property the fence could be torn down. Community Development Director Gladhill acknowledged some code cleanup is needed. Motion by Councilmember Collins, seconded by Councilmember Junker, to direct staff to prepare right of way encroachment agreement with a clause allowing the fence to be six feet but the next time the fence is reconstructed or changed, it should be in compliance. All in favor. Sale of General obligation Bonds. Series 2021A Elizabeth Bergman, Baker Tilly, explained the proposed bond sale of $2.7 million General Obligation Bonds for street improvements at a .7% interest rate. Motion by Councilmember Odebrecht, seconded by Councilmember Junker, to adopt Resolution 2021-132, Resolution Accepting Proposal on the Competitive Negotiated Sale of $2,760,000 General Obligation Bonds, Series 2021A, Providing for Their Issuance and Levying a Tax for the Payment Thereof. All in favor. 2022 Preliminary Budget Review City Administrator McCarty stated that based on discussion at the September 7 budget work session, the City Council directed staff to adjust the Preliminary 2022 Budget to include certain revenue increases, health insurance cost reductions, increase funding for a Fire Department study, increase the Library levy to 3% over the 2021 levy and include funding for the wellness incentive program. Based on those directives and discussion, there are two options for the updated Preliminary 2022 Budget: Option 1 includes a proposed tax levy adjustment of +6.07% incorporating the items noted above, while Option 2 also includes Page 6 of 9 City Council Meeting September 21, 2021 adding minor computer equipment costs to the operating budget (a long-term goal for the City to be compliant with GAAP accounting standards), slightly increasing the levy to +6.54% over 2021. Following additional discussion, the Council must adopt the Proposed 2022 Budget, Proposed 2022 Tax Levy, and set the Truth in Taxation meeting date. Both options will maintain a balanced 2022 budget. Finance Director Provos discussed the tax impacts of the Proposed 2022 Tax Levy under Options 1 and 2. Councilmember Polehna noted the library budget seems to keep going up $60,000 every year. Councilmember Collins responded that at the last Library Board meeting it was noted with a 100+-year old building, funding needs to be maintained in the event of an emergency fix. Mr. McCarty acknowledged the Library did not have a large fund balance to draw from for some of the requests for big ticket items, for instance the 2022 roof replacement. Motion by Councilmember Junker, seconded by Councilmember Odebrecht, to adopt Tax Levy Option 2, by adopting Resolution 2021-133, Adopting the Proposed Tax Levy for the Payable Year 2022, Resolution 2021-134, Adopting the Proposed Budget Appropriations for the Year 2022, and Resolution 2021-135, Setting Payable 2022 Truth in Taxation Public Meeting. All in favor. Consider Offer to Purchase MnDOT Property at 14100 60th St N (TH36/Greeley), Community Development Director Gladhill explained that the Minnesota Department of Transportation has offered to sell a one acre parcel at the northeast intersection of TH 36 and Greeley Street for $367,000. Staff believes there is merit to this acquisition, but feels it is not critical to obtain this property. If directed to move forward, staff would identify pooled TIF Dollars in the form of an internal loan to be paid back at the time of sale. Councilmember Junker commented that, from an EDA standpoint, it may be beneficial to own this parcel. However there may be some potential environmental issues per the staff report. He would have no problem delaying this until the newly formed EDA meets. Mr. Gladhill stated there has been some environmental review and soil borings. No problems were found, but there was an odor detected by the tester. There is no sense of urgency to move forward. The other side of the question is, what would be allowed to be there per zoning, that the City would be able to deny if the City owned the land. He agreed to do more homework on what works there, environmental findings, what would be allowed there, and potential access, and bring the issue back before the Council in the future. Potential Home Occupation Violation at 922 William St N Mr. Gladhill reported that at the September 7, 2021 City Council meeting, the Council received a complaint about a home occupation being a neighborhood nuisance. The property has a home occupation permit to operate a landscaping company, with conditions concerning outdoor storage and noise. He provided a detailed history of the enforcement efforts. The plan is to cite the occupation for a couple of infractions regarding blade sharpening and some dumping of debris, but if Council wants to proceed with full revocation through the process of a public hearing, it may so direct staff. Page 7 of 9 City Council Meeting September 21, 2021 Mayor Kozlowski remarked that he drives by this site every day and has not seen lots of vehicles or anything that appears to be a nuisance. He agreed with the suggestion to cite blade sharpening and dumping, before proceeding with any harsher mechanism. Mr. Gladhill noted staff also is requesting guidance on the general appropriateness of certain Home Occupations in residential areas. This issue will be considered in light of how the administrative citations can be used as a tool for nuisances. If that does not work in the future, the Council may want to look at a policy change. United Way City Campaign Mr. McCarty stated that the City's Wellbeing Program Committee chose to move forward with a United Way Washington County East employee giving campaign. Staff recommends approval of a resolution approving the campaign. Motion by Councilmember Junker, seconded by Councilmember Polehna, to adopt Resolution 2021-136, Approving United Way Washington County East City of Stillwater Employee Giving Campaign. All in favor. COUNCIL REQUEST ITEMS Councilmember Polehna requested authorization to fundraise for downtown wintertime events. Consensus was to allow him to fundraise. ADJOURNMENT Motion by Councilmember Collins, seconded by Councilmember Junker, to adjourn. All in favor. The meeting was adjourned at 9:40 p.m. �j t • Ted Kozlowski, Mayor ATTEST: Beth Wolf, City Clerk Resolution 2021-125, A Resolution Authorizing the City of Stillwater to Accept a Donation from Geri Freels for the Conversion of the Aiple Residence to a Park Building for Public Use Resolution 2021-126, Approving 2022 Health and Dental Insurance Premiums and City Contribution Resolution 2021-127, Approving Safeassure Consultants, Inc., Annual Service Agreement Resolution 2021-128, Appointing Election Judges and Fixing Compensation for the 2021 General Election Resolution 2021-129, Resolution Amending Resolution 2021-002 Adopting 2021 Fee Schedule Resolution 2021-130, Resolution Approving the Modification to the Development Program for Development District No. 1 and Establishing Tax Increment Page 8 of 9 City Council Meeting September 21, 2021 Financing (Redevelopment) District No. 14 Within Development District No. 1 and Approving the Tax Increment Financing Plan Therefor; and Authorizing an Interfund Loan Resolution 2021-131, Adopting Assessment for Neal Avenue Improvement Project - Phase Two Project 2019-08, L.I. 430 Resolution 2021-132, Resolution Accepting Proposal on the Competitive Negotiated Sale of $2,760,000 General Obligation Bonds, Series 2021A, Providing for Their Issuance and Levying a Tax for the Payment Thereof Resolution 2021-133, Adopting the Proposed Tax Levy for the Payable Year 2022 Resolution 2021-134, Adopting the Proposed Budget Appropriations for the Year 2022 Resolution 2021-135, Setting Payable 2022 Truth in Taxation Public Meeting Resolution 2021-136, Approving United Way Washington County East City of Stillwater Employee Giving Campaign Resolution 2021-137, A Resolution Approving a Right of Entry Agreement Relating to Landowner Improvements Associated with Lot 4, Block 11, Sabin's Addition CPC Case No. 2021-16 Ordinance 1170, An Ordinance Amending Stillwater City Code Chapter 31-325 Allowable Uses In Non -Residential Districts Ordinance 1171, An Ordinance Creating Stillwater City Code Chapter 31-324.2, Neighborhood Commercial And Chapter 31-325, Allowable Uses In Non - Residential Districts Ordinance 1172, An Ordinance Amending The Stillwater City Code Section 22-12 Entitled Background Checks Ordinance 1173, An Ordinance Amending Stillwater City Code Chapter 23 Regarding The Regulation And Enforcement Of The Minnesota State Fire Code Ordinance 1174, An Ordinance Amending Sections 38-6 And 38-7 Regarding Nuisances And Section 58 Regarding Enforcement Officers Who Can Issue Administrative Citations Page 9 of 9