HomeMy WebLinkAbout2023-09-05 CC MIN
216 4th Street N, Stillwater, MN 55082
651-430-8800
www.stillwatermn.gov
CITY COUNCIL MEETING MINUTES
September 5, 2023
WORKSHOP MEETING 4:30 P.M.
Mayor Kozlowski called the meeting to order at 4:30 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
Motion by Councilmember Collins, seconded by Councilmember Junker, to adjourn to Closed
Session. All in favor. The meeting went into Closed Session at 4:31 p.m.
CLOSED SESSION
Pursuant to Minn. Stat. § 13D.05 subd. 3 (b) for attorney-client privileged communication
to discuss the potential litigation related to the Lakeview Hospital easement acquisition.
Present: Mayor Kozlowski, Councilmembers Collins, Junker, Odebrecht, Polehna
Absent: None
Staff present: City Administrator Kohlmann
City Attorneys Land and Bjerkness
Public Works Director Sanders
Motion by Councilmember Odebrecht seconded by Councilmember Polehna to return to open
session. All in favor.
Mayor Kozlowski reopened the meeting at 4:45 p.m.
OTHER BUSINESS
School Zone Speed Limit Study
Mike Larson, P.E., PTOE, Bolton and Menk, presented the results of a school zone study
conducted near New Heights Charter School and Stillwater Middle School. Its purpose was
to determine if a reduced speed limit during school hours and additional traffic controls are
warranted. In both locations, it is recommended that the school speed limit be set and signed
at 20 mph when children are present, a 10 mph decrease from the current posted speed
limit; add school zone signage and school zone speed limit signage; mark all crosswalks
cStillwater ~~
The Birthplace of Minnesota ~
City Council Meeting September 5, 2023
Page 2 of 8
adjacent to the school; add crosswalk warning signage for all marked crosswalks across
uncontrolled intersections, and consider adding crosswalks at certain locations; restrict
parking within 30 feet of any marked crosswalk to promote visibility to pedestrians.
Councilmember Polehna asked how to define “when children are present,” and Mr. Larson
replied that signs can say “when children are present” or they can list morning and evening
hours, or flashing beacon signs may be used. However, flashing beacons are not always
welcome in residential areas and they are most effective with higher speed roadways.
Mayor Kozlowski voiced concern about kids on Owens Street crossing by the Harbor. He
likes the recommendations and would like to be consistent with the other schools.
Public Works Director Sanders stated he will work with Bolton and Menk to look at other
school zones and bring a resolution back for action at the next Council meeting.
Manufacturing/Sale of Low Potency (CBD) THC Beverages
City Attorney Land stated that by ordinance, sales of CBD products are prohibited at liquor
stores and at on-sale liquor establishments. The City also prohibits manufacturing of CBD
products. Lift Bridge Brewery has asked to be able to manufacture and sell CBD-infused
beverages, which would require an amendment to CBD ordinances (to allow manufacturing
and allow at an off-sale). There also have been requests from Cub Liquor and Liberty Village
Wine & Spirits to sell CBD-infused beverages, since the new legislation specifically allows
the sales of CBD products at liquor stores. Attorney Land asked whether, and how, the
Council may want to allow manufacturing and sales of CBD products. There are two different
kinds of manufacturing: plant-to-product, and plant-to-liquid-to-product. The process from
liquid-to-product does not involve an odor as does the plant-to-product process.
Mayor Kozlowski stated he would like to wait and see what other communities do, and
regulate the process that involves an odor.
Councilmember Junker indicated that he would like to wait until State legislation is clearer.
He has already had prospective businesses ask him when they can start manufacturing.
Councilmember Odebrecht stated he has no problem with the manufacturing process in the
industrial area.
Mayor Kozlowski pointed out that the State now allows CBD-infused beverages to be
manufactured and consumed. Stillwater allows the manufacture of booze downtown.
Prohibiting non-odor producing manufacturing downtown would put Stillwater businesses
at a disadvantage; and Councilmember Odebrecht agreed.
Councilmember Junker noted that the City has a moratorium, and yet ends up discussing
this every few meetings. He is not in favor of allowing manufacturing in all zoning districts.
Councilmember Polehna voiced it is unfair to allow manufacturing in one district and not
another.
Councilmember Junker mentioned that the two distilleries downtown are distilling to their
own premise - not to grocery stores and other businesses. So, there is a clear distinction
between what Lift Bridge wants to do, and what the existing distilleries downtown are
doing.
City Council Meeting September 5, 2023
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Ms. Land noted that Lift Bridge, with its microbrewery, already has the ability to sell off sale.
The City does not have to allow on-site consumption, but the off sale is part of their
microbrewery license so that must be allowed. Liquor stores have already inquired about it.
The State is supposed to clarify the regulations in January 2025. To summarize the Council’s
direction: manufacturing would be allowed only at distilleries and breweries, and not
starting from the plant product, but starting only from the liquid product, as an accessory
use, allowed anywhere that is already a distillery or brewery. She will bring back an
amendment for Council action.
2024 Proposed Budget
City Administrator Kohlmann reviewed the revised 2024 Proposed Budget, including tax
impacts on residents and a breakdown of the various funds.
Councilmember Collins pointed out the increase of $40,000 for the Library is to get the
Library to its original “ask.”
Councilmember Junker indicated that even when the Library cut back on staffing, their
donors stepped up, and that is how they funded Saturdays and Sundays. That is not an
option in the other departments that suffered cuts. He would like to see what the donor
pledges were in 2022.
Library Director Troendle stated he could get that information. Next year, the Library hopes
to secure $251,000 in supplemental funding to cover staffing for Sunday hours, all
programming, 52% of the collection budget, the cost to print and distribute the City
newsletter insert, all staff training, and continue the project to digitize historic newspapers.
The Library is very thankful for the City’s support, which provides 85-90% of its operating
budget. Whether to cut back on IT, appeal to donors and partners, or dip into the $102,000
fund balance are decisions that the Library Board will have to make.
Finance Director Provos reported that the auditors stated there is no reason the Library
needs to have a fund balance, because if it is over extended, it would be on the City.
Mr. Kohlmann continued, explaining that the suggestion was made to raise liquor license
fees for the first time in 17 years. A public hearing would be required. Council consensus
was to ask staff to draft a plan for a benchmark increase and an annual increase.
Councilmembers also support passing along the 3% credit card transaction fee on to
consumers rather than absorbing it. Mr. Kohlmann stated staff will bring the budget back
for a vote at the next meeting.
STAFF REPORTS
Public Works Director Sanders presented designs for the Lumberjack Landing building
(Aiple house). The Council preferred a combination of Options A & B. The Wild River
Conservancy and the National Park Service are interested in participating in programming.
There will be a buckthorn cleanup on the property. He also gave a Chestnut Plaza project
update. The roadway should be open for traffic September 15.
Police Chief Mueller reported that Washington County is working on crime view analytics,
which will be a good educational tool for citizens. The School Resource Officer will remain
in the school; any legal risk that the City might face by having the officer there is outweighed
City Council Meeting September 5, 2023
Page 4 of 8
by the risk of not having an officer there. The embedded social worker is doing great and
will meet with the Human Rights Commission soon.
Fire Chief Glaser informed that mutual aid was provided at the prison; Engine #2 was sold;
the Department received a DNR matching $3,200 grant for a radio; and Oak Park Height is
updating its fire study. The fire danger currently is extremely high.
Finance Director Provos noted that a 2012 bond will be called at the next meeting, and
certification letters are going out for water and sewer bills.
Community Development Director Gladhill submitted that the new downtown parking fees
take effect September 8.
City Clerk Wolf noted agenda packet updates and several commission openings.
City Attorney Land summarized the 4-year Manitou Fund parking lease agreement on the
Consent Agenda for the 7 p.m. meeting. As drafted, if the City opts not to renew the lease
after four years, it must pay back 30% of the cost the Manitou Fund is investing in the
parking lot improvements.
Councilmember Junker indicated that he does not support paying back $9,500 if the City
does not renew the lease after four years. Parking lot improvements will range from $17,000
to $38,000 and include only sealcoating and cutting down a few trees; and Ms. Land
responded that the school needs this parking lot for their bus turnaround. It is part of their
CUP requirements.
Mayor Kozlowski pointed out there is value in having the building cleaned up and used.
Continuing staff reports, City Administrator Kohlmann noted that a mailing is being sent out
about a meeting on establishing a Special Service District on October 5. Representative Hill
and Senator Housley will attend the next meeting.
Library Director Troendle reported on upcoming library programming.
RECESS
Mayor Kozlowski recessed the meeting at 6:30 p.m.
REGULAR MEETING 7:00 P.M.
Mayor Kozlowski called the meeting to order at 7:00 p.m.
Present: Mayor Kozlowski, Councilmembers Collins, Junker, Odebrecht, Polehna
Absent: None
Staff present: City Administrator Kohlmann
City Attorney Land
City Clerk Wolf
Community Development Director Gladhill
Finance Director Provos
Fire Chief Glaser
Police Chief Mueller
Public Works Director Sanders
City Council Meeting September 5, 2023
Page 5 of 8
PLEDGE OF ALLEGIANCE
Mayor Kozlowski led the Council and audience in the Pledge of Allegiance.
RECOGNITIONS OR PRESENTATIONS
Youth Service Bureau 2024 Budget Request – Michael Huntley
Michael Huntley, executive director, explained the services provided and requested $11,845
for 2024.
Council Service Awards – Melissa May (Human Rights Commission) and Pam Johnson (Parks &
Recreation Commission)
Mayor Kozlowski and the Council commended Commissioner May for 11+ years of service,
and Commissioner Johnson for 4+ years of service to the City.
Proclamation - Constitution Week
Mayor Kozlowski proclaimed September 17-23 Constitution Week.
Proclamation - Suicide Prevention Month
Mayor Kozlowski proclaimed September 2023 National Suicide Prevention and Action
Month.
OPEN FORUM
There were no public comments.
CONSENT AGENDA
August 15, 2023 Special Meeting and Regular Meeting Minutes
Payment of Bills
72nd Street Improvement Project Declare Costs, Order Assessment and Call for
Hearing – Resolutions 2023‐110 and 2023‐111
2023 Street Improvement Project Declare Costs, Order Assessment and Call for
Hearing – Resolutions 2023‐112 and 2023‐113
Compensation Adjustment for 2023 Election Judges – Resolution 2023‐114
CSAH 5 Phase 2 Improvement Project Declare Costs, Order Assessment and Call for
Hearing – Resolutions 2023‐115 and 2023‐116
Curve Crest Utility Extension Project Contract Agreement for Engineering Services –
Resolution 2023‐117
Downtown Stillwater Holiday Lights Agreement
Everett Street Lift Station Improvement Contract Agreement
Fee Schedule Amendment for Street Lighting Fee Increase – Resolution 2023‐118
Lift Bridge Brewery 2023 Anniversary Day 5k and Beer Mile Event
Maryknoll Lift Station Improvement Contract Agreement
Marylane Drainage Project Contract Agreement
Parking Lot Lease Agreement with Manitou Fund
Short Term Home Rental License for 1123 5th Street South
Stillwater Harvest Fest Event Contract and Temporary Liquor License
Stop Sign Request at Ramsey Street and Brick Street South – Resolution 2023‐119
City Council Meeting September 5, 2023
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Survey Agreement 2024 Street Improvement Project
Councilmember Odebrecht requested the Manitou Fund Parking Lot Lease Agreement be
pulled off the Consent Agenda for discussion.
City Attorney Land summarized the case. The City approved a 2-year Interim Use Permit,
which is contingent on the Manitou Fund using the parking lot north of the Zephyr building
(a City owned lot) for their bus turnaround and drop-off area. Because it is a City parking
lot, the Manitou Fund must enter a lease agreement with the City. The Manitou Fund has
agreed to do minor improvements to the parking lot that will make it useable under a
proposed 4-year lease agreement, which includes the option to extend the lease for two
more years.
Public Works Director Sanders added that the Manitou Fund is proposing to patch bad areas,
sealcoat the entire lot, stripe it and change a light. Answering a question from Mayor
Kozlowski, he replied that the City plans to build a new parking lot for Lumberjack Landing
north of this lot, with access through this lot.
Mayor Kozlowski suggested the value to the City is that the lot will be more useable and lit,
and Mr. Sanders replied the lot has not been well used and is a bit out of the way.
Ms. Land reminded that the agreement holds that if the City chooses not to extend the lease
for the additional two years, the City would pay back 30% of the cost of the parking lot
improvements done by the Manitou Fund.
Councilmember Junker remarked the improvement cost estimate varies between $17,000-
$38,000, and if the City chooses not to extend the agreement, it would pay back $9,500.
Mayor Kozlowski stated that would be a 40-space parking lot for less than $1,000 a month,
which is a benefit to the City. The Manitou Fund is also putting significant investment into
the building, cleaning up the area.
Councilmember Odebrecht commented that the whole thing hinges on bussing. The original
plan had buses, cars and walkers co-mingled. He views the risk of $9,500 as very cheap
insurance.
Councilmember Junker suggested striking the clause about 30% repayment, and
Councilmember Collins agreed.
Motion by Councilmember Junker, seconded by Councilmember Polehna, to approve the
Parking Lot Lease Agreement with Manitou Fund with the removal of Paragraph 9 regarding
the extension option and the pay-back of 30%. All in favor.
Motion by Councilmember Collins, seconded by Councilmember Junker, to adopt the Consent
Agenda as amended. All in favor.
PUBLIC HEARINGS
There were no public hearings.
UNFINISHED BUSINESS
There was no unfinished business.
City Council Meeting September 5, 2023
NEW BUSINESS
Sale of General pbligation Capital Outlay Bonds
City Administrator Kohlmann stated staff would like to retain Baker Tilly as its independent
municipal advisor and authorize them to sell the G.O. Bonds in the amount of $5,215,000.
Motion by Councilmember Odebrecht, seconded by Councilmember Polehna, to adopt
Resolution 2023-120, Resolution Providing for the Competitive Negotiated Sale of $5,215,000
General Obligation Capital Outlay Bonds, Series 2023A. All in favor.
COUNCIL REQUEST ITEMS
There were no Council request items.
ADJOURNMENT TO CLOSED SESSION
Motion by Councilmember Collins, seconded by Councilmember Junker, to adjourn to Closed
Session. All in favor. The meeting went into Closed Session at 7:34 p.m.
Pursuant to Minn. Stat. Section 13D.05 subd. 3(a) for a check in on the performance review
of the City Administrator.
Present: Mayor Kozlowski, Councilmembers Collins, Junker, Odebrecht, Polehna
Absent: None
Staff present: City Administrator Kohlmann
Motion by Councilmember Collins seconded by Councilmember Junker to return to open
session. All in favor.
ADJOURNMENT
Motion by Councilmember Junker seconded by Councilmember Odebrecht to adjourn. All in
favor. The meeting was adjourned at 8:15 p.m.
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Ted Kozlowski, Mayor
ATTEST:
Beth Wolf, City Cler
Resolution 2023-110, Resolution Declaring Cost to be Assessed and Ordering
Preparation of Proposed Assessment for 72nd Street Road and Trail
Improvements (Project 2022-04)
Resolution 2023-111, Resolution Calling for Hearing on Proposed Assessment 72nd
Street Road and Trail Improvements (Project 2022-04)
Resolution 2023-112, Resolution Declaring Cost to be Assessed and Ordering
Preparation of Proposed Assessment for 2023 Street Improvement Project
(Project 2023-02)
Page 7 of 8
City Council Meeting September 5, 2023
Page 8 of 8
Resolution 2023‐113, Resolution Calling for Hearing on Proposed Assessment for
2023 Street Improvement Project (Project 2023-02)
Resolution 2023‐114, Fixing Compensation for the 2023 Special Election
Resolution 2023‐115, Resolution Declaring Cost to be Assessed and Ordering
Preparation of Proposed Assessment for CSAH 5 Improvement Phase 2 Project
(Project 2019-09)
Resolution 2023‐116, Resolution Calling for Hearing on Proposed Assessment for
CSAH Improvement Phase 2 Project (Project 2019-02)
Resolution 2023‐117, Resolution Accepting Proposal and Awarding Contract for
Engineering Services on Curve Crest Utility Extension Project (Project 2023-11)
Resolution 2023‐118, Resolution Amending Fee Schedule for Lighting Fund Rates
Resolution 2023‐119, Approving Stop Sign for Westbound Traffic on Ramsey Street
at Brick Street S
Resolution 2023‐120, Resolution Providing for the Competitive Negotiated Sale of
$5,215,000 General Obligation Capital Outlay Bonds, Series 2023A