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HomeMy WebLinkAbout2023-10-17 CC MINj (water 216 41h Street N, Stillwater, MN 55082 r0 0651-430-8800 The Birthplace of Minnesota www.stillwatermn.gov CITY COUNCIL MEETING MINUTES October 17, 2023 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 Captain Julien 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 SMART Salt Training Presentation Angie Hong, Coordinator of the East Metro Water Resource Education Program, gave a presentation on the harmful impacts of chloride from road salt, water softeners, fertilizer, manure, and dust suppressant. She stated that Long Lake is close to being de -listed for excess nutrients, but shows new chloride impairment. Karen Kill, Brown's Creek Watershed District Administrator, noted the Long Lake measurement was done in 2019 and it is unclear whether it is getting worse or slowing down. Ms. Hong offered several ways Stillwater can reduce its salt output, including participating in the Minnesota Statewide Chloride Management Plan and the Smart Salting Certification Program, offered by the Minnesota Pollution Control Agency in partnership with Bolton & Menk. Grants for certain projects are offered through the MPCA. Public Works Director Sanders shared ways the Public Works Department reduces salt use. Stillwater's 180th Birthday, Heritage Preservation Commission Annual Report and Awards Heritage Preservation Commission (HPC) Chairman Matt Thueson noted the City's 180th birthday and the 50th anniversary of the formation of the HPC. He reviewed the history of preservation efforts in Stillwater. City Council Meeting October 17, 2023 HPC Vice Chair Fitzie Heimdahl and Chairman Thueson recognized the following with HPC awards: Sara Jesperson, Union Art Alley; 1021 Third St S; Contractor Chris Rustad; 1003 Sixth Ave S; 902 Fourth St S; Freight House; Image 360; Seven Edges Design; Cates Fine Homes; Stillwater Public Library; the Washington County Historical Society. Proclamation - Breast Cancer Awareness Month Police Captain Julien explained the Pink Patch Project for breast cancer awareness, and Mayor Kozlowski read a proclamation designating October 2023 as Pink Patch Project/Breast Cancer Awareness Month. OPEN FORUM Dave Najarian, Art's Coffee, requested a Conditional Use Permit for a drive -up window. Community Development Director Gladhill stated this would require an amendment to City Code; he will coordinate with Mr. Najarian and bring the issue to the Planning Commission. Linda Hanson asked if more handicapped -accessible parking can be designated downtown and be better enforced; Community Development Director Gladhill stated the City offers free parking for vehicles with a disability sticker even in the pay zone. He will work with Ms. Hanson and the Police Department to resolve the problem and better inform the public. STAFF REPORTS Public Works Director Sanders updated the Council on the Teddy Bear Park project, and stated there will be an update on the emerald ash borer at the next Council meeting. Police Captain Julien commended Officer Mike Mallet for his work on the Pink Patch program, and Officer Steven Papke for developing a Pals Program (Police At Local Schools), to promote relationship building with kids. He stated three new officers have started, gave a downtown parking update, and stated the Police won the Police versus Fire Tug of War. Fire Chief Glaser reported on Fire Prevention Week activities and the blood drive. Finance Director Provos stated the software update has begun - kudos to Kathy Berwald. Community Development Director Gladhill updated the Council on personnel recruitment, the Sundance Stillwater project and Chapel Hill Flats project. City Clerk Wolf stated absentee early voting is open; the next City Council meeting will be November 8 due to the election; there are openings on the Charter, Downtown Parking, Joint Cable and Library Boards. Business License renewals are due November 1. City Attorney Land stated lease renewals are progressing. City Administrator Kohlmann stated he, the Mayor and Director Sanders will testify before the House Investment Committee regarding Myrtle Street on November 14. CONSENT AGENDA October 3, 2023 Regular Meeting Minutes Payment of Bills Broken Storm Sewer Pipe - Chestnut Driveway Project Brown's Creek Prairie Restoration Page 2 of 7 City Council Meeting October 17, 2023 Gambling Premise Permit for Bayport American Legion Post 491 - Resolution 2023-142 Gambling Premise Permit for Stillwater Elks Lodge 179 - Resolution 2023-143 225 Main St N, St. Croix Boat & Packet Dock Permit and Lease Renewal Temporary Liquor License for Ascension Church Therapeutic Massage Business and Individual Massage Therapist Licenses - Resolution 2023-145 U.S. Bench Corporation Bench License Encroachment Agreement for 324 South Main Street Motion by Councilmember Collins, seconded by Councilmember Junker, to adopt the Consent Agenda. All in favor. PUBLIC HEARINGS Proposed Assessments for 2023 Street Improvement Project Assistant City Engineer Abdullah explained the project. The final project cost is estimated to be $2,520,367. There were slight variations in the final assessment amount and appraisals were higher than the estimated and final assessments of the project. Property owners are being assessed the lower of the two (actual cost of the project) because assessments cannot be more than the appraised benefit to the properties. He explained the assessment rates and time periods. Two objections have been submitted. Mayor Kozlowski opened the public hearing. Melissa Loskota, 804 Anderson Street, stated her assessment went up from $13,260, including water service, to $16,409. As a single mom working two jobs, the assessment is a hardship and will force her to sell her house. She asked why her neighbors got a water service last year and they were charged less; and Mr. Abdullah replied that the contractor's price for the water services was higher this year. Chris Cooper, owner of 1410 Greeley Street (Lily Lake Terrace), with partner Harold Teasdale, stated the $88,000 assessment for their property is 14% of their gross annual revenue and will be an extreme hardship. If they pass it through to their tenants it would be a $20-42 per month per tenant rent increase depending on the assessment term. He has been in multifamily real estate for 18 years and Mr. Teasdale is a pioneer of affordable housing. They have no idea how they will manage the assessment. Mayor Kozlowski responded that if the City absorbed the cost of street projects, everyone's taxes would go up 30% and it would be unfair to those who are still paying off assessments from 15 years ago. He has spent hundreds of hours trying to figure out a better way. Jon Miner, 928 Abbott Street, asked how far in advance street projects are planned. Would it be possible for the City to notify property owners a year and a half or two years in advance, to give them the opportunity to save up money for the assessment; and Mr. Sanders answered that the City rates street condition every three to four years and has a good idea of projects five years out; there should be an updated map on the City web site showing this. The process, starting with authorization for the feasibility report, starts in late summer for the following year, and notices of neighborhood meetings are sent out almost a year in advance. Page 3 of 7 City Council Meeting October 17, 2023 Finance Director Provos added that property owners may pay off all or a portion of their assessment without interest. Scott Brasher, 721 Martha Street South, asked how his corner lot was assessed, noting it is a narrow dead end street; and Mr. Sanders replied that corner lots are assessed per side that was improved. It is a unit assessment so everyone got the same assessment rate. Mr. Brasher then stated his assessment will be a real struggle for him. He feels the assessment method is not an acceptable method, and the problem is not being addressed. Mayor Kozlowski responded that every city uses assessments and he has been trying to figure out a solution to the problem of large assessments. The answer was to make the term 10-15 years and give people more time to pay. The State limits the City's ability to assess to the amount of increase in property value that results from the project. The City is seeking State funding for major streets like Myrtle Street. Tom Grimm, 1050 Orleans Street West, echoed the concerns expressed, adding that his driveway situation has not been resolved to his satisfaction. Adding the sidewalk where there was not one before changed the pitch of the driveway. There is a crest on the driveway reducing the ground clearance which is problematic for his tenant next door; and Mr. Abdullah responded that there was originally a sidewalk there, but at some point it was cut and raised to match the driveway. For this project, the sidewalk had to be lowered to meet ADA requirements. He will work with Mr. Grimm on the issue. Mayor Kozlowski closed the public hearing. Motion by Councilmember Junker, seconded by Councilmember Polehna, to adopt Resolution 2023-146, Resolution Adopting Assessment for 2023 Street Improvement Project (Project 2023-02, L.I.436). All in favor. Proposed Assessments for 72nd Street and Trail Improvement Project Public Works Director Sanders reviewed the project which should be completed by the end of this month. The total cost is estimated to be $711,100. Seven properties would be assessed, totaling $39,000. Instead of unit assessments, appraisals were used to determine assessments. Assessment amounts vary from $3,000 to $12,000 based on appraisals for each of the assessed properties. He explained the assessment rates and time periods. To date no objections have been submitted. Councilmember Polehna stated he thought every street project is assessed by unit. He feels it should be consistent. Councilmember Junker noted this project is much different than other projects because the road was originally unpaved. The Council had many meetings to figure out an equitable way to pay for the project and the City paid much of the cost. Mr. Sanders answered when he was doing calculations, looking only at a cost per lineal foot, according to City policy assessing 80% for a reconstructed road, it comes out to be about $100/lineal foot. So the 270 foot lot would have a $27,000 assessment based on lineal feet. Instead, that large lot is assessed at $12,000. He asked the appraiser why there was such variation and was told there are not many homes on this project that have driveways on the Page 4 of 7 City Council Meeting October 17, 2023 roadway, so they probably would not be using the new road as much as someone living on an interior lot. Mayor Kozlowski opened the public hearing. There were no public comments. The public hearing was closed. Motion by Councilmember Odebrecht, seconded by Councilmember Collins, to adopt Resolution 2023-147, Resolution Adopting Assessment for 72nd Street Road and Trail Improvement Project (Project 2022-04, L.I. 438). All in favor. Proposed Assessments for CSAH 5 Phase 2 Improvement Project Assistant City Engineer Abdullah reviewed the project and stated the City portion of the final project cost is estimated to be $630,144. There were slight variations in the final assessment amount. He reviewed the assessment rates and time periods. To date no objections have been submitted. Mayor Kozlowski opened the public hearing. Joel Luth, 206 Owens Street South, asked why the work is not done yet. There is not a top layer on the street yet, and brand new curbing is already breaking up. Since the street will not get the top layer till next year, what will happen when the snow plow hits the curb? Mr. Sanders answered this was a County -led project. It is unusual for the County not to pave the final wear course, but this project was unique because there was a lot of underground work in the project area, so they wanted to wait over the winter season to see if there is any settlement in the road. The curbs are being marked and will be replaced as part of the contractor's punch list items. Jameson Beuke, 215 Owens Street South, stated he is not happy about his driveway. The entrance is wrong and is already on the punch list to be fixed next year. He had pavers along the driveway and rock next to that to accommodate his plow truck in the winter. He is contesting his assessment because what was done in his yard was supposed to be fixed this year, but it was not fixed. The County stated it is a City problem and vice versa. He will withhold payment until the work is done. Mayor Kozlowski closed the public hearing. Motion by Councilmember Polehna, seconded by Councilmember Odebrecht, to adopt Resolution 2023-148, Resolution Adopting Assessment for CSAH 5 Improvement Project (Phase 2 Project 2019-09, L.I.437). All in favor. Ordinance amendment of 31-514.1 to allow manufacturing of THC-infused beverages as an accessory use at breweries and distilleries and to allow the sale of THC-infused beverages at off- sale liquor establishments - 2nd reading on 2 Ordinances City Attorney Land stated the ordinance amendment allows the manufacture of THC-infused beverages only at distilleries and breweries as an accessory use (not a primary use), and allows the sale of THC-infused beverages at liquor stores. The moratorium adopted by the City is still in place. This is a narrow new allowance under the existing legislation. Councilmember Junker expressed concern that from now until the State of Minnesota gets up and running, tentatively January 1, 2025, the Department of Health is the go -to agency Page 5 of 7 City Council Meeting October 17, 2023 for enforcement of cannabis regulations. How will the City know if the use goes from accessory to primary? He questioned the sale of beverages, levels of THC in beverages, marketing and advertising selling THC, how the City will enforce the restrictions in the ordinance and sales in a gas station convenience store. City Attorney Land replied the ordinance allows sales only at exclusive liquor stores. She agreed the situation is incredibly difficult to try to enforce. The Minnesota Department of Health is taking complaints, so if the City is aware of current businesses that are selling products with more than .3% THC or are manufacturing them unlawfully in the City, the Department of Health should be notified. The City's code enforcement officer can immediately address sign violations or other violations of code. Testing the product is something the City does not know how to do. The City can enter any of these businesses under City ordinances and try to confirm whether or not the manufacturing has become a primary use, but it is unclear how the City would do that. If a business is selling their THC- infused beverages on -sale, that would have to be something that the City just discovers. Councilmember Polehna stated he previously asked to see how other communities are handling these issues. Mr. Gladhill stated staff did a survey and have some results: out of the seven respondents in Washington County, at least three allow on -sale, and at least four allow off -sale retail sales of THC-infused beverages, so Stillwater would not be alone in allowing this type of use. Mayor Kozlowski noted Stillwater is more restrictive relative to many cities in Minnesota. There were no public comments. Motion by Councilmember Odebrecht, seconded by Councilmember Collins, to adopt second reading of Ordinance No. 1205, an Ordinance Amending City Code Chapter 31, Section 31- 514.1 Regarding Performance Standards for Cannabis -Related Uses, and Ordinance No. 1206, an Ordinance Amending Stillwater City Code Section 41-10 Regarding CBD Retail Establishment License Exceptions and Performance Standards. Motion passed 4-1 with Councilmember Junker voting nay. UNFINISHED BUSINESS There was no unfinished business. NEW BUSINESS Ordinance Amendment to establish a special service district in the Downtown Stillwater area for purposes of imposing a service charge within the district - Ordinance 1st Reading City Administrator Kohlmann explained that a special service district is a defined area within the City where special services are rendered and the costs of the special services are paid from revenues collected from service charges imposed within that area. In general, the services are those not ordinarily provided throughout the city from general fund revenues of the City, or provided at an increased level than for the rest of the City. Commercial properties are proposed to receive the Special Service Charge per commercial building. The $500 per commercial building is anticipated to generate about $53,000 annually and allocated to the district in various services and improvements. He summarized the City's Page 6 of 7 City Council Meeting October 17, 2023 efforts to engage downtown business owners in discussion of creating a special service district. The next step is having a public hearing November 8. Motion by Councilmember Junker, seconded by Councilmember Polehna, to adopt first reading of an Ordinance Enacting Stillwater City Code Chapter 56, Section 6 - Special Service District. All in favor. COUNCIL REQUEST ITEMS There were no Council request items. ADJOURNMENT Motion by Councilmember Collins, seconded by Councilmember Junker, to adjourn. All in favor. The meeting was adjourned at 9:56 p.m. Ted Kozlowski, Mayor ATT ST, Beth Wolf, City Cle Resolution 2023-142, Approving Minnesota Lawful Gambling Premise Permit for Bayport American Legion Post 491 at The Lumberjack Resolution 2023-143, Approving Minnesota Lawful Gambling Premise Permit for Stillwater Elks Lodge 179 at Melt Pizza Resolution 2023-145, Approving Issuance of New Therapeutic Massage Business License and Individual Massage Therapist License Resolution 2023-146, Resolution Adopting Assessment for 2023 Street Improvement Project (Project 2023-02, L.I.436) Resolution 2023-147, Resolution Adopting Assessment for 72nd Street Road and Trail Improvement Project (Project 2022-04, L.I.438) Resolution 2023-148, Resolution Adopting Assessment for CSAH 5 Improvement Project (Phase 2 Project 2019-09, L.I.437) Ordinance No. 1205, an Ordinance Amending City Code Chapter 31, Section 31-514.1 Regarding Performance Standards for Cannabis -Related Uses Ordinance No. 1206, an Ordinance Amending Stillwater City Code Section 41-10 Regarding CBD Retail Establishment License Exceptions and Performance Standards Page 7 of 7