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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 Page 3 of 10 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. Page 4 of 10 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. Page 5 of 10 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. Page 6 of 10 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 Page 10 of 10