HomeMy WebLinkAbout2022-09-06 CC MINtI i }Wader
The Birthplace of Minnesota
216 4th Street N, Stillwater, MN 55082
651-430-8800
www.ci.stillwater.mn.us
CITY COUNCIL MEETING MINUTES
September 6, 2022
REGULAR MEETING 4:30 P.M.
Mayor Kozlowski called the meeting to order at 4:30 p.m.
Present: Mayor Kozlowski, Councilmembers Collins, Junker, Polehna
Absent: Councilmember Odebrecht
Staff present: City Administrator Kohlmann
City Attorney Land
City Clerk Wolf
Community Development Director Gladhill
Finance Director Provos
Fire Chief Glaser
Police Chief Mueller
Public Works Director Sanders
Library Director Troendle
IT Manager Holman
Facilities Manager Mick Greiner
OTHER BUSINESS
2023 Budget Discussion
City Administrator Kohlmann led discussion of adjustments to the proposed 2023 budget.
At the Council's request, $47,000 in consultant fees was moved to ARPA Funding, there was
a $6,000 reduction in expenditures from the operating fund, and a projected $20,000
increase in revenues, resulting in a new proposed baseline budget tax increase of 11%. He
explained the proposed 2023 property tax levy of $1.65 million with a 10.387% increase,
and the proposed 2023 property tax rate of 49.315%. Under the proposed budget, the City
portion of property taxes on a median valued home would be about $155 per month.
Councilmember Junker asked how downtown -related costs are tracked, and Public Works
Director Sanders replied that costs for parks, mowing and cleaning bathrooms is under
parks, street sweeping is the stormwater utility fund, and street maintenance is streets.
Trash pickup is charged to the department whose employee does it.
City Administrator Kohlmann discussed the levy adjustments: library levy increase,
downtown bridge lighting and holiday lighting, two police officers, MIS IT
Technician/Consultant, Community Development Enforcement/Specialist, and Community
Development Reclassification of the Administrative Assistant position. He stated if the City
does not hire an MIS Technician, an MIS Consultant could be funded with some of the ARPA
funds, which would bring the tax increase under 10%.
Councilmember Polehna questioned approving new positions before completing the long
range financial management plan and the policing study. He recalled how difficult it was to
City Council Meeting September 6, 2022
cut employees when the City lost $1 million in Local Government Aid (LGA) in the past; and
Police Chief Mueller responded that the police study should be completed in mid -October.
Mayor Kozlowski suggested keeping the two new police positions in the budget as a
placeholder, and waiting to hire until the report is done. He has no issue with the other
proposed adjustments, adding that enforcement issues generate the most complaints.
Councilmember Polehna remarked that two years ago the Council approved hiring a code
enforcement person and now code enforcement has been arbitrarily moved into another
position. He understands the importance of bridge lighting, but suggested fundraising for it.
This would be one of the highest levy increases since he has been on the Council, and it
makes him uncomfortable.
Councilmember Junker commented he does not want to start funding long term debt with
LGA or ARPA funds. He has no problem with the $26,000 library levy increase. In the future
the City should come up with alternatives to fund bridge and downtown lighting costs. He
would support a placeholder for the police positions, but struggles with funding two
positions. He would like to fund some of the IT tasks with ARPA funds, and agreed with the
Mayor that most complaints are about enforcement issues.
Community Development Director Gladhill clarified that the position that is now assistant
planner was previously a zoning administrator; the position was supposed to be split in half
between planning/zoning issues and building permits, and code enforcement, but workload
is so high that staff cannot keep up the planning/zoning or code enforcement.
Mayor Kozlowski stated is he concerned that by eliminating some items, the condition of the
City would suffer significantly.
Councilmember Collins stated he supports leaving the new police positions as placeholders
and funding the IT items with ARPA funding.
Consensus of the Council was to move the IT consultant position into ARPA funds and leave
in all other positions, but hold the police positions until the Police Study is done.
2022 Strategic Plan Summary
Mr. Kohlmann provided a draft of the strategic plan and reviewed the process for
completing the plan before 2024 budget discussions.
Motion by Councilmember Polehna, seconded by Councilmember Collins, to adopt the 2022
Strategic Plan. All in favor.
Long Range Financial Management Plan
Patty Kettles, Baker Tilly, reviewed the proposed scope of work for a long range financial
management plan. The plan will be easy to change to adapt to changing situations. It will
take 4-6 weeks to build the model. The leads will be Elizabeth Bergman and Mikaela Huot.
Finance Director Provos agreed the plan would be helpful.
City Administrator Kohlmann added the cost is not to exceed $40,000 and will come out of
ARPA funds.
Motion by Councilmember Polehna, seconded by Councilmember Junker, to approve the
proposal for a Long Range Financial Management Plan as presented by Baker Tilly. All in favor.
Page 2 of 10
City Council Meeting September 6, 2022
Communications Strategy
Sara Swenson and Ashley Aram of Goff Public presented a proposal for developing a
citywide communications strategy for 2023. Ms. Swenson added that the plan will help
ensure residents receive information in a variety of ways, demonstrating the City's value to
residents, and building trust and relationships with residents and partners, so that a time of
crisis is not the first time the City is communicating with key stakeholders.
Mayor Kozlowski asked if gathering input from stakeholders is part of the communications
plan, and Ms. Aram replied that could be worked into the recommendations, but the plan
would not include execution.
Ms. Swenson added that the team can also can support economic development
communications at a not to exceed cost.
Mayor Kozlowski asked if the City has an emergency crisis communications system, and
Police Chief Mueller replied no.
Ms. Aram responded that having a crisis communications plan is very necessary. The
proposal does not include a crisis communications plan, but Goff Public could do one.
Mayor Kozlowski reminded that the City's lobbyist should be kept apprised. He asked how
the retainer amount proposed might be reduced.
Ms. Swenson replied the estimate is based on Goff Public executing and driving most of the
communications, so if City staff steps into part of that role, the cost would be less.
Mr. Kohlmann stated the funding for the plan would be ARPA funds. Staff can bring more
information back in the near future, and the Council and staff will determine which parts of
the plan to pursue. Council consensus was to direct staff to move forward on development
of a communications strategy.
Facility Space Needs Study Discussion
Facilities Manager Greiner spoke on the need for a study that provides facility condition
rating and space needs for staff. He would like to get quotes from vendors. Typically, a 5-
year and 10-year plan would be done. Council consensus was to proceed with getting quotes
to bring back to a future meeting.
Bergstein Shoddy Mill_Buildings Reuse Update
Community Development Director Gladhill explained the regulatory framework and the
anticipated possible reuses of the Bergstein Shoddy Mill buildings, as guided by the
Bridgeview Park Master Plan and Bergstein Shoddy Mill Reuse Plan. The City Council has
prioritized two major investments within the plan: Public Transient Dock ($500,000;
$750,000 with contingency); and Use of Bergstein Shoddy Mill Buildings, Basic Structural
Repairs Only, No Tenant Improvements ($300,000, $500,000 with contingency) or Tenant
Improvements/Able to Lease ($600,000, $1 million with contingency). He stated that, as
part of mitigation efforts of the impacts of the TH 36/Saint Croix River Crossing, the Shoddy
Mill Buildings are on the National Register of Historic Places. Proposals that deviate from
previous planning efforts may require additional natural and cultural resource mitigation,
especially if State or Federal dollars are involved. Several vendors have approached the City
about doing a trailside coffee shop, and Discover Stillwater has expressed interest in a
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City Council Meeting September 6, 2022
visitor center. A process to gauge interest in reuse of the site was discussed in January. There
is benefit in knowing of the interest before asking the State again for bonding funds or a
local option sales tax. Staff will reactivate the request for proposals to see who is interested
in occupying the space.
Councilmember Junker pointed out that the 2015 Bergstein report inferred that these two
buildings would be very easy to renovate, and that because of the National Registry
designation, they would be eligible for a variety of financial incentives. On the contrary, it
will take a lot of money to renovate the buildings to be functional at all.
Councilmember Polehna remarked that he met with people from the national transient
docking program which could provide some funding.
Mr. Gladhill summarized that staff will work with the City Attorney to ensure that proposals
meet the public purpose requirement. Hopefully there will be Federal and State dollars
available. Council consensus was to more forward to get costs to shore up the building, find
funding sources and determine possible uses for the buildings.
Mayor Kozlowski postponed the staff updates to the 7 pm meeting.
RECESS
Mayor Kozlowski recessed the meeting at 6:02 p.m.
RECESSED MEETING 7:00 P.M.
Mayor Kozlowski called the meeting to order at 7:02 p.m.
Present: Mayor Kozlowski, Councilmembers Collins, Junker, Odebrecht, Polehna
Absent: None
Staff present: City Administrator Kohlmann
City Attorney Land
City Clerk Wolf
Community Development Director Gladhill
Finance Director Provos
Fire Chief Glaser
Police Chief Mueller
Public Works Director Sanders
Library Director Troendle
PLEDGE OF ALLEGIANCE
Mayor Kozlowski led the Council and audience in the Pledge of Allegiance.
RECOGNITIONS OR PRESENTATIONS
Council Service Award for David Brandt, Parks and Recreation Commission
Mayor Kozlowski and the Council recognized David Brandt for 17 1/2 years of service on
the Parks and Recreation Commission.
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City Council Meeting September 6, 2022
Certificate of Appreciation for ion Stillman
Mayor Kozlowski and the Council recognized Jon Stillman, recipient of the Rotary
International Distinguished Service Award.
Bird Migratory_ Awareness Proclamation
Mayor Kozlowski read a proclamation designating March to May and August to October as
"Bird Migration Awareness and Lights Out" months.
OPEN FORUM
Louise Hansen, Rivertown Commons resident, reported continuing problems with kids in
the parking ramp.
CONSENT AGENDA
August 16, 2022 special and regular meeting minutes
Payment of Bills
CBD Retail Establishment License Ordinance - Ordinance 2nd Reading
City Hall Elevator Maintenance Service Contract Extension
City Hall Exhibit Wall and Display Case Contract with Museology, LLC
Downtown Parking Commission Appointment
Fire Service Contract with Stillwater Township
Flexible Work Arrangement Policy Updated
Jumping from a Bridge, Overpass or Roadway into Public Water Ordinance -
Ordinance 2nd Reading
Medical Cannabis, CBD Products and Hemp Growing Operations Zoning Ordinance -
Ordinance 2nd Reading
Regulating Obstructions in the Sidewalk Right of Ways in the Central Business District
- Resolution 2022-109
Rivertown Fall Art Festival Event Contract and Temporary Liquor License
School Resource Officer Agreement with Stillwater Area Public Schools
Security Fencing Project at Stillwater Fire Department
Short -Term Housing Rental License Locations Ordinance - Ordinance 2nd Reading
Short -Term Home Rental License Application for 119 Owens St N
Stillwater Harvest Fest Event Contract and Temporary Liquor License
Therapeutic Massage Business Locations Ordinance - Ordinance 2nd Reading
Tobacco License for New Owners of Len's Family Foods - Resolution 2022-110
Motion by Councilmember Polehna, seconded by Councilmember Junker, to adopt the Consent
Agenda. All in favor.
STAFF REPORTS
Public Works Director Sanders gave construction updates on the Chestnut Street Plaza
Project and the 2022 Street Improvement Project. He stated a Water Efficiency Rebate Grant
is available for residents.
Police Chief Mueller stated personnel will continue to monitor pedestrian safety on the
Chestnut Street Project. There were several disturbances downtown over the weekend. He
provided department and staffing updates.
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City Council Meeting September 6, 2022
Fire Chief Glaser stated he will present a Fire Prevention Week Proclamation October 4. The
Fire Department will participate in a 343 Run September 11 Tribute event.
Finance Director Provos stated seven proposals for banking services were received.
Community Development Director Gladhill stated Design Permit and Short Term Home
Rental applications have increased; applicants are urged to submit early. He stated staff is
working with the State to help applicants meet downtown parking accessibility codes. There
have been many bed and breakfast ownership changes and an influx in code enforcement
requests. He provided a Third/Myrtle Street apartment project update.
City Attorney Land stated the Terra Springs contract will be presented soon.
City Administrator Kohlmann noted staff is working on the budget and strategic planning
and will bring utility fund budgets next. Planning is underway for the Snow Sculpting
Championship event. Staff met with Washington County staff about the Aiple property; and
the League of Minnesota Cities will tour the Fire Station on October 6.
Library Director Troendle shared that before the 1840s, Stillwater had a Dakota name
meaning The Place where the Fish Lies. He gave programming updates and added that photo
scanning will be available to residents October 1 and 15. The library is accepting house
photos and deeds for its collection.
PUBLIC HEARINGS
Preliminary Plat and Final Plat to create three new lots located north of 601 Main St N
Community Development Director Gladhill explained that the City has worked closely with
the Stillwater Marina & Yacht Club to bring the proposed plat before the Planning
Commission and City Council. The purpose of the plat is to allow the City to purchase
property, ensuring access and control to the recently acquired parks and recreation area
known as Lumberjack Landing. Additionally, the plat will help clarify private property line
boundaries along the Brown's Creek trail property. The specific request is to subdivide an
existing 79,239 square foot lot into three new outlots within the Park, Recreation or Open
Space District. Staff recommends approval of the Preliminary and Final Plat.
Mayor Kozlowski opened the public hearing. There were no public comments. The public
hearing was closed.
Motion by Councilmember Junker, seconded by Councilmember Collins, to adopt Resolution
2022-111, a Resolution Approving a Preliminary Plat for Lumberjack Landing Trail Addition,
Case No. 2022-62, and to adopt Resolution 2022-112, a Resolution Approving Final Plat for
Lumberjack Landing Trail Addition, Case No. 2022-62. All in favor.
Amend City Code Allowable Uses in Non-residential Districts to specifically allow medical
offices in this district — Ordinance 1st Reading
Community Development Director Gladhill explained that receipt of a Conditional Use
Permit application to allow a medical/dental clinic and office in the Campus Research
District ("the District", or CRD) prompted staff to review the district standards, previous
applications and development pressures that have affected the District in the past decade.
Staff felt it appropriate to bring forward an ordinance amendment proposal for the Campus
Research District that addresses design requirements and allowable uses.
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City Council Meeting September 6, 2022
Mayor Kozlowski opened the public hearing. There were no public comments. The public
hearing was closed.
Motion by Councilmember Collins, seconded by Councilmember Odebrecht, to adopt first
reading of an Ordinance amending City Code Chapter 31, Section 31-322 and Section 31-325
regarding Campus Research District Allowable Uses and Performance Standards. All in favor.
Amend City Code regarding Accessory Uses and Structures in residential districts to update
sizes For larger lots, allow for home offices/recreation rooms. and remote other conflicting
regulations pertaining to accessory structures in the City Ordinance - Tabled to October 4
Council meeting
Motion by Councilmember Odebrecht, seconded by Councilmember Polehna, to table Amend
City Code regarding Accessory Uses and Structures in residential districts, to the October 4 City
Council meeting. All in favor.
Yacate and discontinue a portion of unbuilt public right-of-way, identified as Third Stret,
located east of 101 Hazel Street East and west of Schulenburg Park
Community Development Director Gladhill explained that the property owners of 101 Hazel
St E have applied for a right-of-way vacation of an unopened portion of Third Street North,
adjacent to Schulenburg Park. The right-of-way includes a storm sewer line and a separate
city -granted right of way and utility easement, which crosses a portion of Third Street North.
There does not appear to be any physical improvement on the existing right-of-way at this
time. Including the existing storm sewer line, any other utilities existing in the right-of-way
would need to be encumbered by a drainage and utility easement. Staff recommends
approval of the requested vacation.
Councilmember Junker asked how the case originated, and Mr. Gladhill replied that the
adjacent landowner (Middletons) requested the right-of-way vacation. State law directs that
the vacated property would be split down the middle and attached to the adjacent parcels
even though one of the adjacent parcels is a City park.
Mayor Kozlowski opened the public hearing.
Jon Skaalen, 1900 Third Street North, stated he voiced no objection.
Mayor Kozlowski closed the public hearing.
Councilmember Junker stated the right-of-way vacation does not benefit the City and he
objects to giving the adjacent property owner more land for potential construction.
Mr. Gladhill noted that most of that section of Third Street right-of-way has already been
vacated through a similar process. He does not know if it will give enough property to create
more lots than what is there today. The number of lots will be restricted by topography.
Councilmember Odebrecht agreed that the vacation does not create value for the City, but
any structure built there would have to meet requirements or pass the practical difficulty
test if a variance is sought.
Motion by Councilmember Polehna, seconded by Councilmember Collins, to adopt Resolution
2022-113, a Resolution Vacating a Portion of Unbuilt Public Right -of -Way located within the
City of Stillwater, Minnesota. Motion passed 4-1 with Councilmember Junker voting nay.
Page 7 of 10
City Council Meeting September 6, 2022
Zoning Map Amendment to rezone certain properties to Neighborhood Commercial to better
preserve the existing smaller commercial uses in neighborhood areas that are not associated
with Downtown or the Highway 36 Commercial Corridor - Ordinance 1st Reading
Community Development Director Gladhill stated that during development of the 2040
Comprehensive Plan, changes to the commercial land use categories were made to clarify
and better reflect the desire to preserve the unique neighborhood commercial uses of the
historic areas. In 2021, a Zoning Text Amendment was approved that added the
Neighborhood Commercial section to the zoning code. Now the map is being amended to
apply it to the appropriate parcels. The Planning Commission recommended approval of the
Zoning Map Amendment, provided that the Liberty Village and Fourth Street Parcels are
removed.
Councilmember Odebrecht questioned creating a legal nonconforming property at Owens
and Wilkins by including it (gas station) in the Neighborhood Commercial District.
Mr. Gladhill replied it is his understanding that the City is trying to get to a point of phasing
out gas stations in the older residential sections of Stillwater. The gas station may continue
without expansion, but if it ever closes, it would convert to a use that is more compatible
with the neighborhood area. He thinks the old part of Stillwater should be treated separately
and historic preservation standards should not be applied to Liberty Village, which should
be left as village commercial.
Mayor Kozlowski opened the public hearing. There were no public comments. The public
hearing was closed.
Motion by Councilmember Junker, seconded by Councilmember Polehna, to adopt first reading
of an Ordinance Amending the Zoning Map to rezone certain properties to Neighborhood
Commercial. All in favor.
UNFINISHED BUSINESS
There was no unfinished business.
NEW BUSINESS
2022 Street Improvement Project Declaring Costs. Preparing Assessment Roll and Call for
Hearing
Public Works Director Sanders informed the Council that the 2022 Street improvement
Project is scheduled to be completed by the end of October 2022. Staff has projected the
total cost to be $2,425,920. Staff recommends that Council declare costs, authorize the
preparation of the assessment rolls, and call for a hearing.
Motion by Councilmember Junker, seconded by Councilmember Collins, to adopt Resolution
2022-114, Resolution Declaring Costs to be Assessed and Ordering Preparation of Proposed
Assessment for the 2022 Street Improvement Project (Project 2022-02) and to adopt
Resolution 2022-115, Resolution Calling for Hearing on Proposed Assessment for the 2022
Street Improvement Project (Project 2022-02). All in favor.
Page 8 of 10
City Council Meeting September 6, 2022
2021 Sidewalk Rehabilitation Project Declaring Costs, Preparing Assessment Roll and Call for
Hearing
Public Works Director Sanders explained that the 2021 Sidewalk Improvement Project is
scheduled to be completed by the end of October 2022. Staff has projected the total cost to
be $39,287. The assessment roll needs to be prepared and a hearing held.
Motion by Councilmember Collins, seconded by Councilmember Polehna, to adopt Resolution
2022-116, Resolution Declaring Costs to be Assessed and Ordering Preparation of Proposed
Assessment for the 2021 Sidewalk Improvement Project (Project 2021-06) and to adopt
Resolution 2022-117, Resolution Calling for Hearing on Proposed Assessment for the 2021
Sidewalk Improvement Project (Project 2021-06). All in favor.
Fee Schedule Amendment for CBD License Fee and Violations
City Clerk Wolf explained that staff recommends the CBD Retail Establishment License fee
mirror the City's on -sale intoxicating liquor license fee, since CBD is an unregulated
intoxicating drug (unlike tobacco which is non -intoxicating and regulated). Staff
recommends setting the CBD license fee at $4,000, the CBD license background
investigation fee at $300 for new applications, and $150 for renewals, and the violation fee
at $500 for each offense, doubling the fee upon each repeat offense.
Motion by Councilmember Junker, seconded by Councilmember Odebrecht, to adopt
Resolution 2022-118, Resolution Amending Resolution 2022-04, 2022 Fee Schedule
Regarding CBD Retail Establishment License Fee. All in favor.
COUNCIL REQUEST ITEMS
Councilmember Polehna invited the Council to a 9 a.m. September 17 ribbon cutting and
grand opening for the Riverbank Stabilization Project. He thanked Stillwater Sunrise Rotary
for donating benches and bike racks.
Police Chief Mueller stated the Department will participate in a Cover the Cruiser (police
car) event for Special Olympics at 4 p.m. on September 16 at the historic bridge entrance.
ADJOURNMENT
Motion by Councilmember Junker, seconded by Councilmember Collins, to adjourn. All in favor.
The meeting was adjourned at 8:11 p.m. •
Ted Kozlowski, Mayor
ATTEST:
Beth Wolf, City Clerk
Resolution 2022-109, A Resolution Regulating Obstructions in the Sidewalk Rights of
Way in the Central Business District in Downtown Stillwater
Resolution 2022-110, Approving New Tobacco Licenses for Grocers Unlimited LLC
dba Len's Family Foods
Page 9 of 10
City Council Meeting September 6, 2022
Resolution 2022-111, A Resolution Approving a Preliminary Plat for Lumberjack
Landing Trail Addition, Case No. 2022-62
Resolution 2022-112, A Resolution Approving Final Plat for Lumberjack Landing
Trail Addition, Case No. 2022-62
Resolution 2022-113, A Resolution Vacating a Portion of Unbuilt Public Right -of -Way
located within the City of Stillwater, Minnesota
Resolution 2022-114, Resolution Declaring Costs to be Assessed and Ordering
Preparation of Proposed Assessment for the 2022 Street Improvement Project
(Project 2022-02)
Resolution 2022-115, Resolution Calling for Hearing on Proposed Assessment for the
2022 Street Improvement Project (Project 2022-02)
Resolution 2022-116, Resolution Declaring Costs to be Assessed and Ordering
Preparation of Proposed Assessment for the 2021 Sidewalk Improvement
Project (Project 2021-06)
Resolution 2022-117, Resolution Calling for Hearing on Proposed Assessment for the
2021 Sidewalk Improvement Project (Project 2021-06)
Resolution 2022-118, Resolution Amending Resolution 2022-04, 2022 Fee Schedule
Regarding CBD License Fee
Ordinance No. 1190, An Ordinance Amending the Stillwater City Code by Enacting
City Code §41-9 CBD Retail Establishment License
Ordinance No. 1191, An Ordinance Enacting Section 52-21 of the Stillwater City Code
Regarding Jumping from a Bridge, Overpass or Roadway into Public Water
Ordinance No. 1192, An Ordinance Amending City Code Chapter 31, Section 31-101,
Section 31-325, Section 31-315, Regarding Medical Cannabis, Cannabidiol (CBD)
Projects and Hemp Growing, and Section 31-514.1 Regarding Performance
Standards for Cannabis -Related Uses
Ordinance No. 1193, An Ordinance Amending City Code Chapter 31, Section 31-315
and Section 31-325 Regarding Short -Term Housing Rental License Locations
Ordinance No. 1194, An Ordinance Amending City Code Chapter 31, Section 31-325
Regarding Therapeutic Massage Business Locations
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