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HomeMy WebLinkAbout2022-03-01 CC MINThe Birthplace of Minnesota 216 4th Street N, Stillwater, MN 55082 651-430-8800 www.ci.stillwater.mn.us CITY COUNCIL MEETING MINUTES March 1, 2022 REGULAR MEETING 4:30 P.M. Mayor Kozlowski called the meeting to order at 4:42 p.m. Present: Mayor Kozlowski, Councilmembers Collins, Junker (remotely) Odebrecht, Polehna Absent: None Staff present: City Administrator McCarty City Attorney Land City Clerk Wolf Community Development Director Gladhill Finance Director Provos Fire Chief Glaser Police Chief Mueller Public Works Director Sanders IT Manager Holman City Planner Wittman Library Director Troendle OTHER BUSINESS Public Parking Ramp/Lowell Inn Safety Improvements Community Development Director Gladhill briefed the Council on the problem of persons accessing the Lowell Inn roof from the top level of the parking ramp, causing significant damage, plugging roof drains and causing flooding of the Lowell Inn. He presented a number of options to deter trespassing on the Lowell Inn from access from the ramp. Consensus of the Council was to direct staff to bring back options for a low profile obstruction that will not detract from the roofline, but make it difficult to climb onto the roof, possibly including an additional camera. Future Accessory Structure and Use Ordinance Amendments Discussion City Planner Wittman stated that staff has found numerous areas of City Code where there are either inconsistencies or a need for updating to align with community values and property owner needs. She led discussion on accessory structures and uses, including bulk and setback regulations in various districts and for various uses (i.e. Accessory Dwelling Units), the use of accessory structures or a portion thereof (i.e. wood shops, office/studios, Accessory Dwelling Units), and non-traditional accessory structures (i.e. portable garages/sheds and shipping containers). The consensus of the Council was to support the use of accessory buildings for spaces such as home offices and rec rooms for personal, but not commercial use; to continue to limit the number of accessory structures to two; to eliminate the story restriction and instead limit City Council Meeting March 1, 2022 the height by a number of feet; to prohibit non-traditional structures, i.e. shipping containers, or to allow them on a very temporary basis seasonally for storage, with design guidelines. Staff will continue to research other communities' regulations and start working on potential code amendment language. Short Term Home Rental Discussion Community Development Director Gladhill reported that as the popularity of Short Term Home Rentals (STHR) continues to grow, staff would like to improve the program based on recent applications and renewals. He requested direction on key policy areas, including building code accessibility requirements (2020 Code Change), owner occupied status/license type, enforcement, parking, and maximum licenses. Building Code requirements for Type C Licenses (Non -Owner Occupied) present the primary concern raised by prospective licensees and consumes the most amount of staff time in administering the program. These are regulations that the City must administer; the City does not have the choice to grant Variances to Building Code. A change from a single-family dwelling to Type C Short Term Home Rental (owner does not reside on site) represents a change in occupancy classification and requires the owner to install accessibility improvements. This can be challenging in historic homes. Staff recommends the following: 1) reinforce that conversions to Type C Licenses shall require accessibility improvements pursuant to Building Code and that staff resources will not be allocated to finding alternative paths to this requirement; 2) consolidate license types into Owner Occupied and Non - Owner Occupied; 3) create a Short Term Home Rental Parking Permit to meet demands of overnight guests; and 4) provide direction on maximum licenses. Additionally, staff recommends that the City host a meeting with current licensees to discuss potential changes. Mayor Kozlowski indicated that his biggest concern is companies buying several properties and running them as an LLC or investment. St. Paul, for example, limits these to two per owner. He would like to allow homeowners to have a revenue generating opportunity to fix up their old homes, but does not want STHR to be a vehicle for companies seeking profit. City Attorney Land summarized that the issue is making sure the owner is maintaining the property. To do that, the City can limit the number of properties it feels a single owner can reasonably manage. Councilmember Odebrecht remarked that Airbnbs are self regulating and the bar is very high; bad reviews really impact them. Mayor Kozlowski stated he would like to make sure they do not turn into event venues or corporate properties, which would detract from the character of the neighborhood. Councilmember Odebrecht suggested increasing the number of available licenses. Councilmember Polehna noted that the hotels downtown represent a $30 million investment and he sees no point in increasing the number of STHR licenses. Councilmember Collins stated he would support increasing the number of licenses downtown because there have been no issues. Page 2 of 10 City Council Meeting March 1, 2022 Councilmember Junker stated before increasing the number of available licenses, he would like to know how many of each type have been issued outside of downtown. Additionally, the Council should not adjust the number of licenses without addressing parking needs. Mr. Gladhill recapped that staff will bring back information on parking, consolidating license types, limiting the number allowed per applicant, possibly switching to owner occupied versus non -owner occupied, plus possibly increasing the number of licenses available downtown. He added that at some point the City could create a STHR residential parking pass as opposed to the 30-day residential parking pass. STAFF REPORTS Public Works Director Sanders explained MnDOT's request for a Jurisdictional Boundary change along Hwy 36 to square off the boundaries. Motion by Councilmember Polehna, seconded by Councilmember Odebrecht, to approve the squaring off the boundary on the north side of Hwy 36 pursuant to MnDOT's original request, continuing all the way west to the City's boundary. All in favor. Mr. Sanders went on to report that there is a 40% chance of minor spring flooding. He shared that MnDOT will contribute $225,000 to soil remediation on the Chestnut Plaza project. Police Chief Mueller offered kudos to Community Resource Officer Brad Junker for the Chamber Hero of the Year Award. He gave an update on personnel openings and interviews. Mental health related calls continue. He reminded the public never to leave a car running due to car thefts. Fire Chief Glaser stated the Department responded to two structure fires. The Fire Department Organizational Study will begin this week. The annual Relief Association meeting is April 5. Community Development Director Gladhill stated that the Assistant Planner position will be filled soon. An electric vehicle charging station project is underway. The Chestnut Plaza project is moving along. City Administrator McCarty stated an RFP for the Police Department Operational Study has gone out and a recommendation will be forthcoming. Staff has met with event organizers and will get input from Commissions and bring the event policy back to the Council. The bonding bill has been drafted and is scheduled for hearings. Senator Housley's bill has been introduced requesting the DNR to not enforce all the elements of the litigation in the White Bear Lake court case. IT Manager Holman reported that the cybersecurity audit is starting. New help desk software will be coming soon. She and the Council offered kudos to IT employee Rich Bornt for his work pulling information together for the EOC. Library Director Troendle updated the Council on library services and events listed on the new web site. RECESS Mayor Kozlowski recessed the meeting at 6:17 p.m. Page 3 of 10 City Council Meeting March 1, 2022 RECESSED MEETING 7:00 P.M. Mayor Kozlowski called the meeting to order at 7:00 p.m. Present: Mayor Kozlowski, Councilmembers Collins, Junker (remotely, left at 8 p.m.), Odebrecht, Polehna Absent: None Staff present: City Administrator McCarty City Attorney Land City Clerk Wolf Community Development Director Gladhill 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 Department of Natural Resources (DNR) White Bear Lake Court Case Jason Moeckel, DNR Ecological and Water Resources Section Manager (via Zoom), presented the background and key elements of the court order. The DNR contested case process is underway and expected to take several months to a year. One of the major issues is the requirement of the DNR to set a collective annual withdrawal limit for White Bear Lake (WBL) and adjust permits accordingly. He emphasized that under Minnesota Statutes, when there is not enough water to meet demand, requiring that permits be amended, the DNR must determine the priority of the uses. The first priority is domestic water supply, for in - home use only. Schools, hospitals, hotels, and other businesses are not part of the domestic water category. The DNR must evaluate for efficient use and explore possible alternatives, such as whether there are alternative aquifers that can help meet demand. A hierarchy of priorities has been established, which seems not to lend itself to a long term, large geographic water supply issue as being faced here. He went on to explain the collective annual withdrawal limit. Under Minnesota Statutes, the DNR may allow only up to 1/2 an acre foot per acre to be withdrawn from the lake, or the equivalent of six inches of water. The existing use exceeds this. Councilmember Polehna stated that engineers have shown that Stillwater's water is not coming from the direction of WBL, yet the case imposes severe restrictions on Stillwater residents. Mr. Moeckel responded that the groundwater model incorporates all the aquifers in the entire groundwater management area and beyond. The City of Stillwater's municipal wells are drawing from aquifers that are all hydro -geologically connected, so while Stillwater's water is not coming from WBL, it is coming from an aquifer that is connected to WBL. Page 4of10 City Council Meeting March 1, 2022 Mr. Moeckel went on to explain how the DNR determined the effect of domestic supply and usage on the lake. Engineers had to use inference to determine approximate usage volumes inside the home versus outside the home, looking at metro and statewide data. It was determined that 55 gallons per person per day for in home use is a reasonable number. Running that number through the model to determine what it would do to the lake level results in a level right at the protected elevation. All the DNR can do under the court order is authorize the volume of water sufficient to meet the first priority use. All this information was sent in a report to District Court on February 7. The DNR met with all permittees and legislators to explain the implications if the permit amendments move forward. It does not seem that it would work very well because it includes no hospitals, no schools, no industrial uses, so an alternative proposal is needed. That is where the case stands today. Mayor Kozlowski asked if this is being driven by the District Court, not the DNR; and Mr. Moeckel replied that the District Court has required the DNR to apply certain statutes, which existed prior to the District Court's ruling. The District Court incorporated the five mile boundary, which adds a level of complexity. Councilmember Junker inquired how the significant growth of communities such as Hugo, Lake Elmo and Mahtomedi over the last five years plays into the number of homes using those wells and aquifers in the five mile radius; and Mr. Moeckel responded that overall there is a downward trend in water use due to newer appliances, controllers and behavior changes. The Mount Simon aquifer, as the deepest aquifer, is not connected to the aquifers above it. But a well in the Jordan aquifer is connected to the lake. The DNR model provides insight in considering alternative supplies to take the pressure off the aquifer system. There are 44 permitted entities within five miles of WBL. Mayor Kozlowski asked, if it were not for the homeowners around the lake who filed the lawsuit, how much of this would the DNR be doing; and Mr. Moeckel answered absent the lawsuit, the DNR developed a groundwater management area plan that identified important issues. All these communities are hydro -geologically related, so tools were needed to determine how to meet current and future needs. The DNR was already invested in going in this direction. The court case added an accelerant and also some constraints. Councilmember Polehna remarked the hardest part for him is that Stillwater has just one well that is only ten feet inside the five -mile radius, yet the restrictions are being placed on all residents in the City of Stillwater; and Mr. Moeckel replied that he understands the concern. He provided the north and east metro groundwater management map and stated he understood the testimony that led the judge to come up with the five -mile radius. The whole region needs a sustainable water supply and if some communities go to an alternative source so that other communities can keep their groundwater source, then everybody benefits. Not everyone can stay on groundwater and continue to comply with the statutes and meet the needs of future generations. Councilmember Polehna stated he understands that a surface water system being considered would cost about $600 million. He questioned where $600 million would come from; and Mr. Moeckel replied that the Met Council evaluated several scenarios. One scenario would have 13 of the communities switching to a surface water source, but that was before the groundwater modeling. Now it will not take 13 communities switching. One Page 5 of 10 City Council Meeting March 1, 2022 proposal was for six communities with a cost estimate of $150 million for capital construction. Mayor Kozlowski inquired if there are other lakes in this region that are similarly threatened; and Mr. Moeckel replied WBL is very unique because it is so deep and is much more connected to the groundwater. The other lakes in the area aren't nearly as deep. Councilmember Polehna questioned if the problem could be cyclical; and Mr. Moeckel responded that in the 1930s during the dust bowl era, WBL had lake levels that were almost as low as in 2012. We are just coming out of the 30 wettest years on record in MN, yet we experienced the all time lowest lake level in WBL. council Service Award - Karie Weldon The Council recognized Karie Weldon for her contributions, dedication, professionalism, outstanding performance, and distinguished service to the City and its citizens for one year as Police Data Specialist. Council Service Award - Byron Theis Mayor Kozlowski congratulated Byron Theis for his many contributions, dedication, professionalism, outstanding performance, and distinguished service to the City and its citizens for 8 1/2 years as Engineering Technician. Colorectal Cancer Awareness Month Proclamation Mayor Kozlowski proclaimed March 2022 as Colorectal Cancer Awareness Month. Certificate of Retirement - Tom McCarty Mayor Kozlowski and the Council commended retiring City Administrator Tom McCarty for serving the City and its citizens faithfully, efficiently and courteously for 7 years. City Administrator McCarty thanked the Mayor and Council, staff and community members for their support. Motion by Councilmember Polehna, seconded by Councilmember Collins, to adopt Resolution 2022-025, Certificate of Retirement - Tom McCarty. All in favor. OPEN FORUM There were no public comments. CONSENT AGENDA February 15, 2022 regular meeting minutes Payment of Bills American Rescue Plan Act (ARPA) - Resolution 2022-026 Designation of Depository for Investments - Resolution 2022-027 Drainage and Utility Easement for 201 Olive Street West Drainage and Utility Easement for 114 Brick Street East Employee & Volunteer Recognition Program and Other Public Purpose Expenditures Policy Gambling Premise Permit for Stillwater Elks at The Wild Hare - Resolution 2022-028 Parking Restriction on Brick Street South - Resolution 2022-029 Page 6of10 City Council Meeting March 1, 2022 Purchasing Policy Revisions Sanitary Sewer Manhole Rehabilitation Project Agreement - Resolution 2022-030 Supporting State Legislation Amending State Liquor Laws on Growler Sales and Definition of Compact and Contiguous for Defining a Premise - Resolution 2022-031 Motion by Councilmember Odebrecht, seconded by Councilmember Junker, to adopt the Consent Agenda. All in favor. PUBLIC HEARINGS Project 2022-02. to consider the street and utility improvements on the 2022 Street Improvement Projec.t Assistant City Engineer Abdullah explained the proposed 2022 Street Improvement Project. In all, there are 3.44 miles of streets proposed for improvements, 1.77 miles of mill and overlay, 0.71 miles of partial pavement reconstruction, and 0.96 miles of full pavement reconstruction. The total estimated cost is $2,398,304. Funding is through ten-year assessments, permanent improvement bonds, State Aid funding, and utility improvement funding. Construction would take place May to October 2022 with the assessment hearing in October 2022. Mayor Kozlowski opened the public hearing. Don Johnson, 1015 Everett Street, asked why he is getting assessed $4,000 for watermain while people on Brick Street are getting it paid for by the City. Also he stated part of the deterioration of Everett Street is from school buses using the street and hospital ramp employees, both of which were not to use Everett Street according to agreements he recalls from years ago. He feels the hospital and school district should pay more. Mr. Abdullah replied the City pays for the main water line, but individual water service connection from the main to the house is paid for by assessments. Kyle Brandvik, Brick Street South, asked for an explanation of properties assessed at 70% and 80% while she is assessed 100%. Mr. Abdullah replied that Brick Street is a state aid project and Ms. Brandvik is being assessed at a 50% rate. Paul Brandvik, Brick Street, stated his neighbor has a corner lot and 1/2 the assessmen,t but the same amount of footage as he does. Mr. Abdullah explained that a corner assessment is 1/2 on each street and assessments are per lot rather than per foot. Kyle Brandvik asked if there will be any additional costs associated with the main line to the house and will they be given notice when work will be done? Mr. Abdullah replied they will be given 24 hours notice when the water will be off so the contractor can connect their service to the main line. Summer Seidenkranz, Our Saviors Church, voiced concern about the issue of a break in water service for a day due to the church activities. Page 7 of 10 City Council Meeting March 1, 2022 Mr. Abdullah replied the water service for the church does not come from Brick Street, so they will not experience a break in service. The City web site has a link to request notifications on the project. A resident of Dubuque Street who did not give her name stated one of the homes is in foreclosure, which has stone from the road up the hill. She asked how it will be handled. Mr. Abdullah replied engineers have been working on the design for that portion. They may end up moving the first or second row of boulders which are on the City right of way. Mary Ellen Soderholm, Cherry Street, stated she noticed the sanitary sewer pipe and manholes will be replaced. Sixteen years ago she experienced water in the basement and a backup from the pipe in front of their house. She was told at the time the pipe was antiquated. Public Works Director Sanders stated the sanitary sewer main will be replaced from Third to Fourth Street on Cherry Street. There is nothing wrong with the main on Everett Street. Kyle Brandvik asked about landscape disturbances. Mr. Abdullah replied property owners will be notified when the contractors start working on Brick Street, because concrete curb and gutter will be replaced, they anticipate 1-2' landscaping behind the curb will be disturbed and the homeowner will be notified of the need to move plantings if they wish while the project takes place. Don Johnson stated in the front of his house the road narrows down to less than two lanes wide. He asked if the street will be widened. Mr. Abdullah replied no, they are just going to repair the parts that are broken. Mayor Kozlowski closed the public hearing. Motion by Councilmember Odebrecht, seconded by Councilmember Collins, to adopt Resolution 2022-032, Resolution Ordering Improvement and Preparation of Plans & Specifications for the 2022 Street Improvement Project, Project 2022-02. All in favor. UNFINISHED BUSINESS C4ipital Improvement Proj.cts (CIP) Report City Administrator McCarty presented the Capital Improvement Plan for years 2022-2026. The CIP includes $90 million in projects, including the bonding bill projects. Projects in the first year (2022) are included and funded within the approved 2022 City budget. The CIP will be administratively updated each year during the annual budget cycle based upon Council, staff and community input. Motion by Councilmember Polehna, seconded by Councilmember Odebrecht, to adopt Resolution 2022-033, Resolution Approving the 2022-2026 Capital Improvement Plan for the City of Stillwater. All in favor. Page 8 of 10 City Council Meeting March 1, 2022 NEW BUSINESS St. Croix Recreation Center Possible Expansion Project Planning Services Contract Mr. McCarty informed the Council that an RFP to perform a planning level construction cost estimate for the Rec Center possible expansion project was issued on January 26, 2022 and proposals were submitted by five consulting firms. An evaluation team comprised of Councilmembers Polehna and Junker, the St. Croix Valley Rec Center Director, the Community Development Director, and the City Administrator reviewed all responses. The team recommends acceptance of the proposal and award of the professional services agreement to the 292 Design Group in the amount of $28,750. Motion by Councilmember Polehna, seconded by Councilmember Collins, to adopt Resolution 2022-034, Resolution Accepting Proposal and Awarding Professional Services Agreement to the 292 Consulting Group for Provision of Planning Level Construction Cost Estimates for the St. Croix Valley Recreation Center Possible Expansion Project. All in favor. Charter Amendment Redefining the Election Boundaries - Ordinance 1st Reading City Clerk Wolf explained a Charter Amendment that redefines the election boundaries based on 2020 census data. The Charter Commission agreed with the proposed boundary changes and directed staff to prepare a public hearing for March 7, 2022. Designation of polling places resolution will come before Council at the March 15 City Council meeting. Motion by Councilmember Collins, seconded by Councilmember Odebrecht, to adopt first reading of an Ordinance amending the Stillwater Code, Chapter 21, General Provisions, Section 21, Subd. 11, entitled "Election Wards." All in favor. COUNCIL REQUEST ITEMS Motion by Councilmember Odebrecht, seconded by Councilmember Collins, to approve the cybersecurity contract. All in favor. ADJOURNMENT Motion by Councilmember Collins, seconded by Councilmember Polehna, to adjourn. All in favor. The meeting was adjourned at 8:42 p.m. Ted Kozlowski, Mayor ATTEST: Beth Wolf, City Clerk Resolution 2022-025, Certificate of Retirement - Tom McCarty Resolution 2022-026, a Resolution to Elect the Standard Allowance Available Under the Revenue Loss Provision of the Coronavirus Local Fiscal Recovery Fund Established Under the American Rescue Plan Act Resolution 2022-027, Designation of Depository for 2022 Page 9 of 10 City Council Meeting March 1, 2022 Resolution 2022-028, Approving Minnesota Premises Permit for Lawful Gambling for Stillwater Elks #179 at the Wild Hare Resolution 2022-029, Approve Parking Restrictions on S.A.P. 169-123-001 (Brick Street S) from Myrtle St. W to Olive St W in the City of Stillwater, Minnesota Resolution 2022-030, Resolution Accepting Proposal and Awarding Contract for 2022 Sanitary Sewer Manhole Rehabilitation Project (Project 2022-05) Resolution 2022-031, A Resolution Supporting State Legislation Amending State Liquor Laws Raising or Eliminating Caps on Growler Sales of Microbreweries and Clarifying the Definition of Compact and Contiguous for Defining a Premise Resolution 2022-032, Resolution Ordering Improvement and Preparation of Plans & Specifications for the 2022 Street Improvement Project, Project 2022-02 Resolution 2022-033, Resolution Approving the 2022-2026 Capital Improvement Plan for the City of Stillwater Resolution 2022-034, Resolution Accepting Proposal and Awarding Professional Services Agreement to the 292 Consulting Group for Provision of Planning Level Construction Cost Estimates for the St. Croix Valley Recreation Center Possible Expansion Project Page 10 of 10