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HomeMy WebLinkAbout2004-09-07 CC MIN ,. , .. CITY OF STILLWATER CITY COUNCIL MEETING NO. 04-20 Council Chambers, 216 North Fourth Street September 7, 2004 REGULAR MEETING 4:30 P.M. Mayor Kimble called the meeting to order at 4:30 p.m. Present: Councilmembers Kriesel, Milbrandt, Rheinberger, Junker and Mayor Kimble None Absent: Others Present: City Administrator Hansen Police Chief Dauffenbach Director of Administration Knauss Public Works Director Eckles Fire Chief Glaser Community Development Director Russell Finance Director Harrison City Clerk Ward OTHER BUSINESS Discussion on Community Center Mr. Mike Pohlena, Parks Board Chair, stated that there is a possibility of obtaining funds from Ms. Kroc's foundation (McDonald's) for a recreation center. He asked what was the status of the armory and if Council is still interested in a community center. He requested authorization to pursue these funds because he only has until the end of September to apply for the grant. Mayor Kimble stated that the armory issue is still being pursued. Councilmember Kriesel stated he is part of a task force investigating this issue and requested that Mr. Pohlena participate in the task force. Councilmember Rheinberger stated he likes the concept, however has concerns with location, cost, operational costs and whether the City can afford a community center. Council member Milbrandt stated that it would make sense to investigate options and funding. Motion by Council member Milbrandt, seconded by Council member Kriesel authorizing Mr. Pohlena to apply for the Kroc grant for a community center. All in favor. City Council Meeting - 04-20 September 7, 2004 Possible approval of raisinq recreation center rates Mr. Mike Pohlena, Chair of the Parks Board, requested that Council raise the recreation center rates. He stated that rates have not been raised since the facility was built. He also stated that the current rates are paying for the operation of the facility but not paying for the debt service. Councilmember Milbrandt expressed concern that the school districts have already set their budgets and suggested that the rates only be raised to those entities that do not have a contract for 2004. Motion by Councilmember Rheinberger, seconded by Councilmember Milbrandt to adopt Resolution 2004-177, approval of rates for the St. Croix Recreation Center effective immediately, except for contracts already signed (Le. school districts). Ayes: Councilmembers Kriesel, Milbrandt, Rheinberger, Junker and Mayor Kimble Nays: None Discussion on Assessment Policy Public Works Director Eckles stated that the North Hill project has proved to be a very difficult area to create an assessment roll that is perceived to be fair and equitable by all of the residents. He explained that the normal assessment procedure usually works well when using a "per lot" assessment approach; so every lot gets the same charge for an equivalent improvement and sometimes staff uses a per front foot method for streets, while storm sewer is often by area calculation. He explained that challenges to the typical approaches are where to install services- what lots will subdivide; some large lots have very small street frontages, while other have high frontages; some vacant lots appear to be buildable, others do not; it takes much more street length to serve the estate lot area then urban lot area; some lots have paid previous storm sewer assessments others have not; and some lots have sewer or water service but no main and were never assessed. He stated than in an effort to deal with the challenges staff is proposing some slight modifications to the usual methodology, so that the assessment roll is not only legal and defendable, but also has the essence of fairness for those folks being assessed. Mr. Eckles stated that there is usually an assessment for sewer main, and an assessment for sewer services, which has been done because sometimes a property owner wants to add additional services in anticipation of a lot split. He stated that this approach would be problematic on this project, because some people might not want the additional charges now, but then would need to tear up the street in the future. He felt that if staff installs and assesses for an additional service, there is some presumption that the lot is then buildable (not good assumption in this area due to the terrain). He stated that staff assessed every inhabited home in the project area and that gained access to the sewer, a Sanitary sewer assessment. He continued by saying that rather than make value judgments on whether a lot is buildable, he proposes Page 2 of 21 City Council Meeting - 04-20 September 7, 2004 installing service stubs anywhere a new house could potentially be built, but don't assess for any vacant lots, therefore the vacant lots would pay a hookup charge if and when a sewer permit is pulled to hook up to the system. He stated the sanitary sewer is proposed to be $4909.23 per existing house. This is the amount in the feasibility hearing. Mr. Eckles stated that water would be treated identical to the sanitary. We would install services anywhere a new house could potentially be built. Assessments for Water Main would only be levied where there is an existing house with plumbing and the charge would be $3408.08 per existing house (as per the feasibility hearing). A hook up fee would be collected when a permit is pulled to connect to the water system. Mr. Eckles stated that the street assessment calculation was most difficult. He also stated that rather than charge based on the "per unit" basis, staff has been using the "front foot" approach and using frontage methodology generally will yield higher assessments for larger lots. He continued by saying that because this project has many odd shaped lots, resulting in a wide range of assessments even for similarly sized lots, therefore staff used an approach of converting the area of large odd shaped lots into an equivalent frontage. He explained that using this approach, a 1-acre lot would have an equivalent frontage of 218', but it would be reduced to the maximum of 180'. Staff used the same cost per linear foot as the feasibility report: $47.37 per foot, therefore a large estate lot would have the maximum street assessment of $8,527, while a smaller 80- foot urban lot would have an assessment of $3,790 for streets. He felt this range had an equitable balance that gets to the issue of large versus small, as well as having some relationship to actual cost. Mr. Eckles stated that staff first proposed a storm sewer assessment of $0.13 per square foot. On the second draft assessment roll presented at the feasibility hearing, there was no storm sewer assessment for anybody. This eliminated almost the entire assessment for the golf course and reduced the typical assessment by $1,000 to $12,000. He stated that staff has been widely criticized for the low assessment to the golf course that has resulted from this approach. He stated that as an alternative, staff is proposing to charge $0.01 per square foot. He continued, this will capture a very small amount from small lots (on the order of $100), while the large estate lots will see amounts of $440 per acre. He stated that it allows the City to capture some value from vacant lots and the golf course. He felt that since vacant lots are paying no street, sewer or water assessment, a small storm assessment seemed warranted. He also stated that a very minor storm assessment generates about $20,000 in charges to the golf course-so at least the 50-acre course will have a higher overall assessment than the residential properties in the area. He informed the Council that the golf course would be compensated for some of the easements that are being granted to allow the project to proceed along the course. He stated that in order to test our approach we obtained 3 appraisals of representative lots, to compare the proposed assessment to the estimated increase in market valuation and the appraisals all showed our assessments to be well less than the estimated market increase. Page 3 of 21 City Council Meeting - 04-20 September 7, 2004 Mr. Eckles stated that the attached assessment role incorporates the modified methodology presented above; it appears to meet the requirements of the assessment laws, and provide a balanced, fair and equitable assessment distribution. He stated that using this approach will yield total assessments of $1 ,596,380.37, or approximately 26% of the total project cost and assuming about 25 potential new lots in the course of future years, an additional $625,000 would be captured, bringing the total non-subsidized amount to about $2.2M or 36% of the total project cost. He recommended using the proposed assessment roll for the purpose of notifying residents of their proposed assessment. Councilmember Kriesel expressed concern that at the town meeting there would not be a storm sewer charge and now there will be. Councilmember Rheinberger stated that he favored the process and should proceed. He felt that it met the fairness test, which is an objective standard, and also in principal it is equitable which is individual fairness. He stated that 28% is real costs and 72% is being picked up by the public or other methods of funding. Councilmember Junker asked if the appraisals were based on the unit, but does not factor in any possible subdivision. Mr. Eckles stated that the appraisals are just for the single unit, but maybe one of the persons may want to subdivide. Councilmember Kriesel felt that staff has done everything possible to make the assessments as fair as possible. Motion by Councilmember Rheinberger, seconded by Councilmember Junker to approve the assessment policy for the North Hill Improvement project. All in favor. Discussion on Hookup Charaes Public Works Director Eckles stated because the City is subsidizing a lot of this project, that as part of the proposed assessment policy for the North Hill project, staff discussed possible methodologies for collecting assessments or improvement costs for vacant parcels. He suggested that staff would like to proceed by installing service stubs to any parcel we feel has any potential of being subdivided, however if this is done and the property is assessed, the basis of that assessment is that the value of that property goes up. If the property is not buildable the presumption of an increase in value is dubious. Mr. Eckles suggested as an alternative to an assessment, city staff has been exploring the idea of hookup charges because hookup charges would allow the City to eventually collect cost involved in providing public utilities to these vacant parcels and at the same time, a hookup charge is not due until a property actually develops. Therefore there is no pressure on a landowner to sell or develop their property. He stated that the hookup charge methodology avoids the problem of proving increasing value, it does not force the Page 4 of 21 City Council Meeting - 04-20 September 7, 2004 hand of landowners, and it allows the City to set a hookup charge rate that will capture the cost of providing service. Mr. Eckles continued saying that in developing the proposed hookup charge, staff went with the assumption that the City would be less willing to help subsidize newly created buildable lots and to completely eliminate all of the City subsidy, the City would need to charge about $30,000 per new lot. He stated that recent developments indicate that the cost of public utilities runs about $25,000 per lot and based on this data if we charge $12,500 for a sewer connection and $12,500 for water connection, we would gain $25,000 for every connection. He also stated that procedurally staff recommends charging these fees every time a new property comes in for a building permit. He recommended that all properties that directly or indirectly connect onto any of the improvements installed as part of the North Hill project would be subjected to these charges. He stated that even if a property owner subdivided a lot that required a short sewer or water extension in order to gain access to the sewer it is recommended to charge the $25,000. He also suggested that hookup fees would be adjusted upwards on a yearly basis according to the construction price index (usually around 2-3%). Councilmember Rheinberger favored the proposed hookup charges; he felt that the charge releases any hidden personal premium that the City may have transferred to an owner at the expense of another taxpayer. Councilmember Junker asked if the department would work with every resident for the location of the stubs. Mr. Eckles stated that staff usually meets with every resident in the field to determine the best location. Mayor Kimble stated that he has received many positive remarks regarding Tim Moore's assistance to the neighbors on this project and asked Mr. Eckles to make sure that Mr. Moore is aware of his hard work and the satisfactory comments on this project. He has received many calls complimenting Mr. Eckles, Mr. Sanders and the engineering staff. Councilmember Milbrandt stated that it should not be assumed that if a property is stubbed it is a buildable lot, that will be determined at the Planning level. Motion by Council member Rheinberger, seconded by Councilmember Junker to adopt a policy requiring hookup fees for all new homes making connection (units that didn't pay for sewer and water service) to the City's sewer and water system and adopting Resolution 2004-178, setting fees for sewer and water hookups, in an amount of $12,500 for sanitary sewer and $12,500 for water. All in favor. BudQet Discussion City Administrator Hansen stated that at the 7:00 p.m. meeting staff will ask you to adopt three resolutions to adopt the proposed budget, tax rate and set the public Page 5 of 21 City Council Meeting - 04-20 September 7, 2004 hearing for December 7. He stated that this adoption of resolutions is preliminary and that the final budget can go down at the December 7 meeting, but cannot be raised. He provided three options for the tax rate and the impacts on the value of homes. He also reported that there is a rumor that supposedly a deal has already been cut to trade LGA monies to education; therefore the City could be cutting budgets like in 2003 because of loss of LGA. Mayor Kimble asked if Council would adopt the higher rate, they could always lower it on December 7. City Administrator Hansen stated that was correct and that Council also has the ability to correct something in the budget that Council doesn't like. Mayor Kimble explained levy limits. He stated that the tax rate is what should be limited because the City invested in infrastructure, but the City can't capture the taxes with levy limits. He felt that Council should go with a 0% tax rate increase, but there is the option to absorb the additional monies into budget from new development that has occurred. Councilmember Rheinberger favored the midpoint approach because it gives flexibility if LGA is eliminated, it allows for the replacement of services and allows for catch up revenue for street repair or equipment replacement, and to take advantage of what appears to be an economic expansion that would allow residents to absorb the increase. Councilmember Kriesel asked if the midpoint was selected and the state did provide LGA funding could the street lighting fee be eliminated. He stated that the taxpayers cannot use this fee as a tax reduction on their taxes and it would be better to stick with traditional tax dollars. He stated the reason the street lighting fee was imposed was because levy limits could not be raised. City Administrator Hansen stated that would be a possibility however he stated that if there are access dollars it may be better to put them in the Capital Projects fund because Council has indicated they would like to increase that fund 10% per year and the City's share of the money is not currently there. It would also be cheaper to use tax dollars rather than bonding and paying interest. Councilmember Junker stated that the reason taxes will go up is the value of the home, unfortunately, realization of that does not occur until someone sells their home. City Administrator Hansen stated that if they wanted to play it safe it would be to levy the maximum, you can always go down, the middle proposal also has merit. He stated that in all the years he has prepared budgets he has never budgeted more than what it would take to operate, however in these uncertain times there should be something. Mayor Kimble stated if the tax rate remains the same, and with no levy limits the City can capture dollars to pay for the essential services. He stated that before December Page 6 of 21 City Council Meeting - 04-20 September 7,2004 the Council could reduce it but Council can't raise it and it will allow the Council to see what happens with the deals the state is making. Councilmember Rheinberger disagreed with the mayor, because people can't afford it. Councilmember Milbrandt stated that he is not convinced that staying at zero is where the Council will end up, however based on the meeting Mr. Hansen had with the League it is very disturbing that there is a potential of taking away LGA. That would put the City in a very bad position, but it would buy some time to find out and this is a preliminary budget being submitted to the County. Mr. Hansen stated that he hates to see legislative action determine tax policy for the cities, but it seems that is what it has come to. STAFF REPORTS Police Chief Dauffenbach informed the Council of a City Auction that will be held on October 6,2004 at the Public Works Facility. He also stated that the cities of Bayport and Oak Park Heights would also be participating in this auction. Chief Dauffenbach requested permission to donate the department's old bulletproof vests to State Trooper Issacson who is going to be deployed to Iraq. He stated that these vests would line vehicles for extra protection. Motion by Council member Milbrandt, seconded by Council member Rheinberger approving the donation of the Police Department's old bulletproof vests. All in favor. Fire Chief Glaser stated that the department would be assisting the Water Department in the flushing of hydrants this fall. He informed the Council that Fire Prevention Week is October 3-9 with an Open House at the station on October 9. Public Works Director Eckles provided an update on the Deerpath project. He stated that they are waiting for Xcel Energy to move some light poles, however due to the hurricanes in Florida many of their staff have been sent there to help. The project will continue once the poles are moved by Xcel. City Administrator Hansen stated that a joint workshop with Oak Park Heights has been set for September 22 however the exact time has not been set. Mayor Kimble recessed the meeting at 5:50 p.m. Page 7 of 21 City Council Meeting - 04-20 September 7, 2004 ECESSED MEETING 7:00 P.M. Mayor Kimble called the meeting to order at 7:00 p.m. Present: Council members Kriesel, Milbrandt, Rheinberger, Junker and Mayor Kimble None Absent: Others Present: City Administrator Hansen Police Chief Dauffenbach Public Works Director Eckles Fire Chief Glaser Community Development Director Russell Finance Director Harrison City Clerk Ward APPROVAL OF MINUTES Motion by Council member Rheinberger, seconded by Councilmember Kriesel to approve the August 17, 2004 special and regular meeting minutes, August 24 & 31 special meeting minutes. All in favor. PETITIONS, INDIVIDUALS, DELEGATIONS & COMMENDATIONS Proclamation - Constitution Week - September 17-23. 2004 Mayor Kimble proclaimed September 17-23, 2004 Constitution Week. Tom Koop. Larson. Allen. Weishair & Company Mr. Tom Koop, provided Council with an overview of the City's financial report. He commended Sharon Harrison, the Finance Department and the Engineering Department for their excellent work in preparation for the GASB34 requirement of assembly of infrastructure information. Mayor and Council also thanked Ms. Harrison and the Finance Department for their excellent work. Veterans Memorial Committee Request Mr. Dick Olsen, Veterans Memorial Committee, presented information to Council regarding the expansion and Memorial upgrade and requested approval. Mayor Kimble stated that the maintenance of the site has been excellent. Page 8 of 21 City Council Meeting - 04-20 September 7, 2004 Motion by Council member Rheinberger, seconded by Councilmember Milbrandt to approve the concept, subject to staff review and approval. All in favor. OPEN FORUM There were no public comments CONSENT AGENDA Motion by Council member Rheinberger, seconded by Councilmember Milbrandt to approve the Consent Agenda. Ayes: Councilmembers Kriesel, Milbrandt, Rheinberger, Junker and Mayor Kimble Nays: None Resolution 2004-173, directing payment of bills Resolution 2004-174, approving 2004 Memorandum of Agreement for Drop-off Center Recycling Grant Distribution with Washington County Approving Fiscal Year 2005 Budget - Joint Cable Communications Commission Resolution 2004-175, approving State Historical Scholarships for HPC members to attend conference Approval of donation of holiday lights to Village of Emerald, WI Approval of utility bill adjustments Approval of Permit to Sell 3.2 percent malt liquor at Lily Lake Ballfields - Mark Johnson, applicant Approval of Temporary On-Sale Liquor License for Church of St. Michael Parish Festival- October 10, 2004 Approval of request for Fire Prevention Week Signs/Banners Request for sandwich board sign and spotlights - Washington County Historic Courthouse - Christmas at the Courthouse Possible approval of request for outside merchandising - Tires Plus Approval of banner request - American Diabetes Association Approval of banner request - Fall Art Fair Resolution 2004-176, Authorizing City Administrator to Negotiate and Enter Into A Joint Powers Agreement with the City Of Oak Park Heights to Provide Utility Services Approval to purchase laptop computer for the Public Works Department PUBLIC HEARINGS Case No. SV/04-68. This is the date and time for a public hearinQ to consider a request from Jessica Lanqe and Josephine Kiel for a street vacation request to vacate the unopened portion of Third Street North lyinQ between Elm Street on the south (vacated) and Aspen Street on the North and that portion of Third Street North abuttinq Blocks 4 and 5. of Carli & SchulenberQ's Addition Page 9 of 21 I l ~ City Council Meeting - 04-20 September 7, 2004 Community Development Director Russell reviewed the street vacation request. He stated that the Planning Commission denied the request at their last meeting. He also stated that the City Engineer indicates that no street improvements are planned for this section of North Third due to lack of need, cost of improvement and environmental condition, but requests that retaining the right of way for a drainage and utility easement for on possible future need. He also stated that when the trail plan was prepared this area was considered for future trail improvements and it was decided against because of topography and lack of trail system connection. Mayor Kimble opened the public hearing. Donald Empson, 1206 North Second Street, stated that there were some errors in the materials he received at the Planning Commission hearing and pointed them out to the Council. He stated as a Stillwater historian, he is concerned with the future of our city as well as the past and is speaking against the vacation of Third Street because he believes vacating the street is against the long-term interest of the public and the city. He stated that if you go down to the intersection of Main Street and Myrtle Street, and from there, walk east one block on Myrtle Street toward the river, you will find yourself no longer on Myrtle Street, but instead on the plaza of the Water Street Inn. He stated that the reason for this is that in the 1880's there was a very powerful corporation in Stillwater called Seymour, Sabin & Co, which had much the same position in Stillwater then-that Andersen Corporation holds in Bayport today. He went on to say that Seymour, Sabin decided to build a Union Train Depot in downtown Stillwater and they came to the city and asked them to vacate a part of Myrtle Street on which to build the depot and in return, Seymour, Sabin promised to add a tower with a clock to the depot, a clock tower that would sit on the vacated part of Myrtle Street so, residents of the city walking back and forth on Main Street could just glance down Myrtle Street toward the river and see the clock tower jutting into what remained of the street, and know what time it was. He stated that you have to understand that the train was the lifeblood of the city, just about everything-freight and passengers-that came in or out of the city traveled by train and very few people at that time had personal timepieces: pocket watches were still quite expensive. He also stated that the councilmen at the time, whose names were McComb, Townshend, Lyons, Burke, Kilty, Bronson, Covell, & Drewer, thought this was a fair trade, and they agreed to vacate this part of Myrtle Street however, the railroad no longer comes into Stillwater and no longer plays any role in the daily life of the city, and everyone has three or four personal timepieces, and the last thing we need is a town clock. The depot is long gone and Seymour, Sabin went bankrupt in the course of building the train depot and they never did build the clock tower. It was replaced by Hooley's grocery store, which has now been replaced by the Lumber Barons Hotel, renamed the Water Street Inn. He stated that he has two points to this story: 1.) that no one in the 1880's could have anticipated what has happened since then. He stated that he was sure everyone living then thought the railroads would be around forever, and never, never could they have guessed the possibility of cheap digital watches, but the one fact from this time that does remain is the fact that the street which was given away a century ago is still private property and there is no way the city can reclaim it. Now it is impossible to know what the future might bring, but once the street is vacated, it is gone forever. 2.) is that the public streets-like the Third Street in Page 10 of 21 City Council Meeting - 04-20 September 7, 2004 question here-are dedicated to the public and felt they are very much like the public parks. He felt that the city couldn't sell these streets because they don't own them; the public does. He stated that legally, in order for the city to vacate, or give away, a public street, they must prove some substantial public good that will result from a street vacation. He felt that back in the 1880's, the council could justify their decision because a new train depot and a clock tower would have represented a public good. However, he does not believe that vacating Third Street to consolidate and combine Jessica Lange's two estates is really in the public good, or believed that the small amount of additional taxes that might be realized by converting the street into private property is sufficient public good to, among other things, close off access to one of the City's ravines, ravines which he personally regard as a municipal treasure. Mr. Empson continued by saying that approximately nine years ago, the city council vacated Elm Street at Ms. Lange's request, and by so doing, expanded her estate by 18,000 square feet, or the equivalent of more than two building lots. He stated that before the vacation was even formally done, she had Elm street fenced off and she presently also has Third Street fenced off. He stated that at the time Elm Street was vacated, the argument was made that Third Street was still available for access to the ravine and felt that if Third Street is now vacated, a good section of the ravine will be inaccessible, and Ms. Lange's property will be expanded another 15,000 square feet at the expense of the public's property. Mr. Empson stated that based on the history of other large estates in Stillwater there is a considerable certainty that sooner or later-probably sooner given the 3.3 million dollar price tag-this 2-1/2 acre estate will be subdivided and developed. He felt there are more than seven full lots presently in this estate and under the current building codes and zoning, that means 14 duplexes or double townhouses (that is 28 residences) could be built on this property. He stated that such a development would dramatically change the character of the North Hill. He continued by saying if the Council vacates the street, it is facilitating such a development; the Council is adding enough space for another two duplexes. He asked if there is presently a good alternative use for the street? He answered himself by saying perhaps not at the moment, but who can say for the future. He asked the Council if they remember the Victory Gardens during the Second World War; this would be wonderful place for such a garden. Maybe someday, the city will be able to put solar panels on the street and generate electric power for the North Hill, but in the meantime, why give the property away? The street has been there for 150 years; and didn't feel that giving it to Ms. Lange was the best purpose for this piece of public property. He continued, there are a number of these unopened streets-which he calls Ghost streets-within the city, and as the pressure for development continues, there will be more and more requests to vacate them. He urged the City Council and the Planning Commission to develop a consistent policy towards these ghost streets that would then be incorporated into the Comprehensive Plan. He concluded by saying that he could not blame Ms. Lange for requesting this street vacation; after all, what has she got to lose. Just because she requests the vacation does not in any way obligate you to Page 11 of 21 City Council Meeting - 04-20 September 7, 2004 give away a piece of public property that belongs to all of us. He requested that Council agree with the recommendation of the planning commission, who voted against the vacation by a vote of 7-2. Mr. Ed Simonet, representing Lange Family Trust and Ms. Kiel the petitioners, requested Council to reconsider the Planning Commission's decision. He stated that it has not been pointed out that the City Engineer's indicate that there are no City plans for a street improvement due to lack of need, cost and environmental condition. He felt that it was important to understand what the topography looks like. He presented a picture of the area to the City Council. He stated that they are not talking about a street that has ever been opened or used and felt that the City is not giving away something. He stated that the vacation of this street will put it back on the tax rolls and insure that it is sold as one piece of property rather than two which would hinder any thought of development of the piece close to the Territorial Prison site. He stated that they have no problem with the City retaining a drainage and utility easement. He felt it was a reasonable request and couldn't imagine a street being put in. Mayor Kimble asked if the City would want to retain an easement for a trail or walkway would that request be acceptable from his client. Mr. Simonet stated that he couldn't speak for his client, but if it came to having that easement rather than not having it at all, he didn't think it would be a problem. Mr. David "Choc" Junker, 1001 N. 4th Street, stated they don't need or want any walking paths because it is so steep and there is no reason not to allow the vacation. He stated that it is not allowed to tear down a home that is over 50 years old so he doesn't feel someone will tear down the home and build condominiums. He stated that Ms. Kiel also wants it vacated because it will turn into a nice piece of property and does not feel that any walking path would work because there is a private driveway and it would end on Aspen and Third Streets. Mayor Kimble asked when Council vacated 3rd Street adjacent to Lockquer's because that was previously platted all the way to Wilkin. Public Works Director Eckles stated that it was not vacated but Mr. Lockquer's driveway access is partly on City right-of-way. Mayor Kimble asked staff to investigate because he thought there was a vacation of a portion of North 3rd just south of Wilkins. ' Mr. Junker felt that the vacation was important to both the Lange property and Kiel property because it makes the Lange property one property and Kiel property would maintain the property as she always had. Ms. Jo Kiel, petitioner, stated that Jessica Lange will be very particular on who buys her property. She stated that if the property remains as two parcels that there would be \ Page 12 of 21 City Council Meeting - 04-20 September 7, 2004 building on the second property. She stated that they have taken care of the property for over 54 years. She felt that the property owned by Ms. Lange should be combined and sold as one entity. She didn't see any future development of condominiums. She stated that there is a mixture of modest and expensive homes in the area and it is a neighbor. She asked Council to understand that Ms. Lange is not the only petitioner that she is petitioning for this vacation as well. Ms. Liz Sullivan, 921 N. 4th Street, spoke in favor of the vacation because she doesn't want to see a walking path. She questioned some of the motives of the people against the vacation and felt that maybe envy is the motivation. She stated that Ms. Kiel has been a good neighbor and has been taking care of the property for 54 years and is being forgotten in this issue. She stated that any proposed path would invade her privacy as well as the Lange property. Mr. Del Emerson, 302 W. Elm, spoke in favor of the vacation and would be in the best interest of the City because it has never been used. Mr. Bill Fernolz, 202, W. Aspen, is against the vacation because he doesn't think any land should be given away for free to adjacent owners and to lose public access to any area of the City. He stated that there is already a fence on the proposed vacation. Ms. Kiel stated that the fence abuts her property and she requested that fence be placed where it is. Mr. Bruce Ehlers, 110 Lakeside Drive, asked why couldn't the City sell the property to Ms. Lange; he doesn't feel it should be given to any property owner for free. He felt the property shouldn't be vacated so that the property becomes more valuable. Mayor Kimble explained that state statutes does not allow the City to sell v~cated streets that it has to go back to the abutting property owners. Mayor Kimble closed the public hearing. Council member Rheinberger stated he was in favor of the vacation because of 150 years of non-use and is in favor of an easement. Councilmember Junker stated that the topography is not practical for use and there has been no use in 150 years and spoke in favor of the vacation. He stated that explained the evolution of McKusick Ravine trail and that no one ever thought that would happen, but it serves a purpose of drainage to the river, but felt this ravine would not have the same purpose because it would be a trail that leads nowhere. Councilmember Kriesel felt it has been used for 150 years because he remembers playing in the ravine as a child and agreed with Mr. Empson's statement that it may be used in the future. He favored the planning commission's recommendation. Page 13 of 21 City Council Meeting - 04-20 September 7,2004 Councilmember Milbrandt stated that even though there isn't a current plan for the property, he didn't feel the City should turn it back to an individual. He saw no public benefit to vacate the street. Councilmember Junker stated he would feel better having the property being one property than two properties. Councilmember Milbrandt stated there is no guarantee that someone will buy the property and then come back to the City to subdivide the lot. Councilmember Kriesel felt that if any property the City should retain it would be this property. He felt if that doesn't want to be retained then there are other "ghost" streets that maybe the City should just retain easements and return all of them to the property owners. Council member Rheinberger stated that the City hasn't used it for 150 years and there is a point to let the property owners use it. Mayor Kimble explained that the streets were laid out on a grid system, did not take into account the topography and if it were platted today it would not be allowed. He stated that the law is clear that if the City is not using the "ghost" streets and is not going to be used it should be vacated. He stated that even Myrtle Street if it were built today, it would have had to build differently. Council member Kriesel stated that property is expensive in Stillwater and felt that it would cost the City more should there be a need to get that property in the future. Motion by Council member Milbrandt, seconded by Councilmember Kriesel to uphold the Planning Commission's denial of the street vacation. Motion failed. Ayes: Council members Kriesel and Milbrandt Nays: Councilmembers Rheinberger, Junker and Mayor Kimble Motion by Councilmember Junker, seconded by Councilmember Rheinberger adopting Resolution 2004-179, approving street vacation subject to retaining drainage, utility and trail easement. Ayes: Councilmembers Rheinberger, Junker and Mayor Kimble Nays: Councilmembers Kriesel and Milbrandt Mayor Kimble recessed the meeting at 8:30 p.m. Mayor Kimble reconvened the meeting at 8:38 p.m. Page 14 of 21 City Council Meeting - 04-20 September 7, 2004 Case No. DRl04-47. This is the date and time for a public hearina to consider an appeal of the HeritaQe Preservation Commission's decision on a request from Monty and Terri Brine. representinQ Cornerstone Gifts. Joanne Brown. for desiQn review of siQnaae located at 450 North Main Street in the CBD. Central Business District. Community Development Director Russell reviewed the request to reverse the HPC decision. He stated that the when the building design was originally approved in 1996 a different sign plan was approved that included an interior directory sign for the uses. He stated that the building was used mainly for offices. He stated that the current application is for retail use with different signage needs. He stated that an alternative would be to have the building owner submit an amended master signage plan for the building rather than looking at each sign for the building. Mayor Kimble opened the public hearing. Mr. Monte Brine, owner of the building, stated that the use has changed from office to retail. He explained that they took the ground floor and divided it into three suites. He felt that there would be more office than retail but if the demand were for more retail economically it would be turned to retail. He stated that the sign requested meets the requirements of retail store front signage, however because of the agreement in 1995 it does not meet that agreement, but there was no objection of the sign itself. He stated that the sign would be placed over the three windows of Corner Stone gifts. Council member Milbrandt asked what is the time limit on the banner being used. Mr. Russell stated 30 days. Councilmember Milbrandt stated he would like to see this issue go back to HPC for a master sign plan for the entire building that would accommodate retail and let the temporary sign stay there for 30 more days. Mayor Kimble stated that if this was designated retail in 1995 the sign would meet the signage requirements. Mr. Russell explained the master sign plan for a building. Mr. Brine stated that any sign has to be approved by HPC. Mayor Kimble felt that if it is the same kind of sign but the letters change a 60-day review is too much. Council member Junker expressed concern that the office part of the building might want an outside sign. Page 15 of 21 City Council Meeting - 04-20 September 7, 2004 Mr. Brine stated that there is a level of common sense and there is only room for three retail on the lower level, retail would not be on the upper level. Mayor Kimble closed the public hearing. Council member Rheinberger stated he is in favor of reversing the HPC denial because of the changed circumstances. Mr. Brine stated that they approve building signs, that if it were not something they want they would not allow it. Council member Junker stated that there has to be consistency in signage downtown. He agreed with Councilmember Milbrandt in that he would like it to go back to HPC to amend the building sign plan. Motion by Council member Rheinberger, seconded by Councilmember Kriesel to reverse the HPC decision and granting this sign as subject to the owner/applicant returning to HPC for a master sign plan for the entire building. Ayes: Council members Kriesel, Milbrandt, Rheinberger, Junker and Mayor Kimble Nays: None UNFINISHED BUSINE$S Possible second readinas of "An Ordinance Amendina the Stillwater City Code Chapter 28. Water Department" and "An Ordinance Amendina the Stillwater City Code Chapter 29 amendina an ordinance relatina to sewer and water hookups". City Administrator Hansen reviewed the proposed ordinances. He stated that there are variance processes should a person have a functioning system or hardship. Councilmember Rheinberger spoke against the ordinance and felt there should be an exception to the North Hill residents because of extensive costs. He felt that they would individually apply for the variance and it should be an exception for the North Hill residents. He wants to give them relief and feels that it will be addressed on its own in the future. Councilmembers Junker, Kriesel and Milbrandt felt that the variance process allows for an exception for hardship or a working system. Motion by Councilmember Milbrandt, seconded by Council member Junker to adopt Ordinance No. 947, An Ordinance Amending the Stillwater City Code Chapter 29 amending an ordinance relating to sewer and water hookups. Ayes: Council members Kriesel, Milbrandt, Junker and Mayor Kimble Nays: Councilmember Rheinberger Page 16 of 21 City Council Meeting - 04-20 September 7, 2004 City Administrator Hansen stated that the Water Board did not have mandated hookup and have a resolution asking that this ordinance be created, however he was informed this afternoon that the ordnance may have to have some Scribner changes because it may be in conflict with language pertaining to annexation areas. .~ .! Council member Milbrandt asked why there isn't a variance process in this ordinance. City Administrator Hansen stated that it written in such a manner that it is when sewer is hooked up. Councilmember Rheinberger spoke against the ordinance, he felt there should be an exception to the North Hill residents because of financial ability, and need relief in a broad sense. Motion by Council member Milbrandt, seconded by Councilmember Junker to adopt Ordinance No. 946, An Ordinance Amending the Stillwater City Code Chapter 28, Water Department Ayes: Councilmembers Kriesel, Milbrandt, Junker and Mayor Kimble Nays: Council member Rheinberger NEW BUSINESS Request for Special Event street closure for demonstration skate board - Laurel Street Community Development Director reviewed the request. He stated that the request was before the Parks Board and they did not want to promote skateboards in the park therefore they suggested that the street closure be referred to the City Council. Motion by Councilmember Milbrandt, seconded by Council member Junker approving the closure of Laurel Street, east of 2nd, for the special event request from Graffiti Center. All in favor. Possible approval of resolutions settino payable 2005 Truth-in- Taxation Public Hearino, adoptinq the proposed budoet for the year 2005: adoptinq the proposed tax levy for the payable Year 2005 City Administrator Hansen reviewed the proposed tax rate information. He provided Council with three options. He stated that the preliminary budget information should be adopted by resolution and sent to the County by September 15. He also stated that Council would have the option of reducing the information before December 7, however the final budget must be adopted in December. He stated that the Truth in Taxation hearing would be held at the December 7 meeting. Page 17 of 21 ... City Council Meeting - 04-20 September 7, 2004 Councilmember Milbrandt stated that because of the possibility of losing LGA to set the preliminary budget levy be set at 51.951 where it is this year. He stated that Council could reduce it in December. Council member Rheinberger again reaffirmed his statement it allows for the replacement of services and allows for catch up revenue for street repair or equipment replacement, and to take advantage of what appears to be an economic expansion that would allow residents to absorb the increase. He felt that it would be an 11 % rise in people's taxes and felt it was extremely excessive. Councilmember Junker stated that it is the same tax rate as last year. He stated that the City is not changing their tax rate. Councilmember Kriesel stated that he would like to see the street lighting fee repealed, and he felt that it should be submitted as Council member Milbrandt states and Council can reduce it in December. Motion by Council member Milbrandt, seconded by Council member Junker adopt Resolution 2004-180, setting payable 2005 Truth-n-Taxation Public Hearing. Ayes: Councilmembers Kriesel, Milbrandt, Rheinberger, Junker and Mayor Kimble Nays: None Motion by Councilmember Milbrandt, seconded by Councilmember Junker to adopt Resolution 2004-181, adopting the proposed tax levy for the payable Year 2005. Ayes: Councilmembers Kriesel, Milbrandt, Junker and Mayor Kimble Nays: Councilmember Rheinberger Motion by Councilmember Junker, seconded by Councilmember Milbrandt to adopt Resolution 2004-182, adopting the proposed budget for the year 2005. Ayes: Councilmembers Kriesel, Milbrandt, Junker and Mayor Kimble Nays: Councilmember Rheinberger Possible acceptance of bids and awarding contract for North Hill Improvements Phase III Public Works Director Eckles reviewed the bids for the North Hill Improvements Phase III Project. He stated that the low bidder was Arcon Construction, the current contractor on the project for Phase II. He stated that because it is the same contractor, the starting of Phase III would be earlier than anticipated. He recommended that Council award the project to Arcon for their bid of $1,808,500.36, which was less than the Engineer's Estimate of $2, 200,000.00. Page 18 of 21 City Council Meeting - 04-20 September 7, 2004 Motion by Council member Rheinberger, seconded by Councilmember Junker to adopt Resolution 2004-183, accepting bids and awarding contract for North Hill Sewer Project, Phase 3 (Project 2000-15). Ayes: Councilmembers Kriesel, Milbrandt, Rheinberger, Junker and Mayor Kimble Nays: None Possible purchase of land for Brown's Creek Park/Natural Area Expansion Community Development Director Russell stated that Council directed staff to continue working on the purchases of land for Brown's Creek Park/Natural Area Expansion. He stated that a survey of the site and wetlands designation has been prepared to establish a specific property boundary. He also stated that the parcel proposed to be purchased include a 15-foot non-wetland street on the east side of the property to accommodate a nature trail. He stated that the terms of the purchase is $160,000 paid over three years with installments of $75,000 the first year, $50,000 the second year and $35, 000 the third year. Motion by Councilmember Rheinberger, seconded by Councilmember Milbrandt adopting Resolution 2004-184, authorizing the purchase of land for Brown's Creek Park/Natural Area Expansion. Ayes: Councilmembers Kriesel, Milbrandt, Rheinberger, Junker and Mayor Kimble Nays: None Possible approval of temporary easement aareement for Lift Bridoe Repair Proiect Public Works Director Eckles reviewed the documentation for a temporary easement agreement with the State of Minnesota for the Lift Bridge Repair Project. He stated that the State will pay the City $112,100 for the three year period. Councilmember Milbrandt asked that staff send a letter with the agreement that the City reserves the right to discuss the use by volunteer organizations during Lumberjack Days. Mr. Eckles stated that there was a concern raised by Council that this property may be used for other projects and that Mn/DOT has stated that they will write a letter stating that this land would only be used for the bridge project and he will contact them about the use of land by volunteers during Lumberjack Days. Motion by Council member Rheinberger, seconded by Council member Milbrandt to adopt Resolution 2004-185, approval of temporary easement agreement for Lift Bridge Repair Project and directed staff to send a letter with the agreement that the City reserves the right to discuss the use by volunteer organizations during Lumberjack Days and that the land would only be used for the bridge project. Page 19 of 21 City Council Meeting - 04-20 September 7,2004 Ayes: Councilmembers Kriesel, Milbrandt, Rheinberger, Junker and Mayor Kimble Nays: None Set a Special Meetinq date for Joint Council meetinq with the City of Oak Park Heiahts Mayor Kimble reviewed the memo by City Clerk Ward for a joint workshop with the City of Oak Park Heights City Council to discuss the Cut and Cover concept. City Administrator Hansen informed the Council that the date of September 22, 2004 has been set but the time of the meeting has not and should know by Thursday so that publication of the special meeting can be done. Motion by Councilmember Rheinberger, seconded by Councilmember Milbrandt setting a special meeting date of September 22, 2004 for a joint workshop with the Oak Park Heights City Council with staff coordinate the time with Oak Park Heights. All in favor. STAFF REPORTS (continued) City Administrator Hansen stated that staff is getting ready for the second bond sale for the Terra Springs project and the attorneys found a mistake in the agreement that stated that they would start the Phase II project no later than August 1. They are requesting that date be waived and establish a new deadline of October 1, 2004. Motion by Council member Rheinberger, seconded by Council member Junker to adopt Resolution 2004-186, approving the date change for Phase II of the Terra Springs Project. ADJOURNMENT Motion by Councilmember Kriesel, seconded by Councilmember Rheinberger to adjourn at 9:37 p.m. All in favor. ~~ ATTEST: AhtUu ~ WtVd- Diane F. Ward, City Clerk Page 20 of 21 City Council Meeting - 04-20 September 7, 2004 Resolution 2004-173, directing payment of bills Resolution 2004-174, approving 2004 Memorandum of Agreement for Drop-off Center Recycling Grant Distribution with Washington County Resolution 2004-175, approving State Historical Scholarships for HPC members to attend conference Resolution 2004-176, Authorizing City Administrator to Negotiate and Enter Into A Joint Powers Agreement with the City Of Oak Park Heights to Provide Utility Services Resolution 2004-177, approval rates for the St. Croix Recreation Center Resolution 2004-178, setting fees for sewer and water hookups, Resolution 2004-179, approving street vacation Resolution 2004-180, setting payable 2005 Truth-n-Taxation Public Hearing. Resolution 2004-181, adopting the proposed tax levy for the payable Year 2005. Resolution 2004-182, adopting the proposed budget for the year 2005. Resolution 2004-183, accepting bids and awarding contract for North Hill Sewer Project, Phase 3 (Project 2000-15). Resolution 2004-184, authorizing the purchase of land for Brown's Creek Park/Natural Area Expansion. Resolution 2004-185, approval of temporary easement agreement for Lift Bridge Repair Project Resolution 2004-186, approving date change for Phase II of the Terra Springs Project Ordinance No. 946, An Ordinance Amending the Stillwater City Code Chapter 28, Water Department Ordinance No. 947, An Ordinance Amending the Stillwater City Code Chapter 29 amending an ordinance relating to sewer and water hookups. Page 21 of 21