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Home My WebLink About1989-06-06 CC Packet . . . \ .. /IA ' L- , Regular Meeting AGENDA STILLWATER CITY COUNCIL June 6, 1989 Recessed Meeting 4:30 P.M. 7:00 P.M. 4:30 P.M. AGENDA STAFF REPORTS 1. Finance Director 4. Comm. Dev. Director 7. Fire Chief 2. Public Safety 5. Parks & Recreation 8. City Attorney 3. Public Works Dir. 6. Consulting Engineer 9. City Clerk 10. City Coordinator 7:00 P.M. AGENDA CALL TO ORDER I NVOCATI ON ROLL CALL APPROVAL OF MINUTES - Special Meeting, May 9, 1989 PETITIONS, INDIVIDUALS AND DELEGATIONS 1. Richard Ernst, II, Parlay Group, Inc.-request that City Council include in with the Forest Hills improvement projects, the installation of the short cul-de-sac streets and utilities to the lots and include the cost of these installations in the special assessment process. PUBLI C HEARINGS 1. This is the day and time for the continuation of the hearing for consideration of possible revocation of the taxi license for Town Taxi to operate within the City of Stillwater. 2. This is the day and time for the Public Hearing on a request for a variance to the 25 ft. height limit requirement (29 ft. proposed) for a free-standing sign in the IP-C Industrial Park Commercial District, Gunnar Balstad, applicant. Case No. V/89-28. Notice of the Hearing was published in the Stillwater Gazette on May 23, 1989 and copies were mailed to affected property owners. 3. This is the day and time for the Public Hearing on a variance to the sideyard setback requirement (10 ft. required, 51 6" proposed) for the construction of a three season porch and deck on top of an existing garage at 1415 North Second Street, Rema and Angus MacDonald, applicant. Case No. V/89-29. Notice of the Hearing was published in the Stillwater Gazette on May 23, 1989 and copies were mailed to affected property owners. 1 . . . ~ .' 4. This is the day and time for the Public Hearing on a request for a variance and special use permit for the renovation of a Carriage House into personal living quarters with two Bed and Breakfast guest rooms, a deck and carport at.306 West Olive Street, Charles and Judith Dougherty, applicants. Case No. V/SUP/89-30. Notice of the Hearing was published in the Stillwater Gazette on May 23, 1989 and copies were mailed to affected property owners. 5. This is the day and time for the Public Hearing on whether or not the City should enact an enabling resolution that will create an Economic Development Authority in the City. Notice of the Hearing was published in the Stillwater Gazette on May 23 and May 30, 1989. UNFINISHED BUSINESS 1. Second reading of Ordinance amending Bluffland/Shoreland Ordinance incorporating the DNR changes. 2. Second Reading of Zoning Ordinance Amendment establishing a new Central Business District Zoning Ordinance for Downtown Stillwater (Case No. ZAT/89-5, City of Stillwater, applicant). 3. Second reading of Zoning Ordinance Amendment changing the zoning designation of land in the North Main Street Area from IA General Industrial, IB General Housing Industrial and CA General Commercial to CBD Central Business District (Case No. ZAM/89-3, City of Stillwater, appl i cant). 4. Response from Washington County Public Works Department - CSAH 24, 3rd Street and Orleans Street. 5. Extension of Township fire contracts. 6. Approval of Development Agreement for the GrandquistProperty. (Resolution) 7. Consideration of Bids for new dump truck. NEW BUSINESS 1. Recommendation by Downtown Plan Action Committee to close Levee Road. 2. Request by CUB for use change and parking approval for former Reed's Drug Store. 3. Commission appointment to Board of Water. (Resolution) PETITIONS, INDIVIDUALS & DELEGATIONS (continued) CONSENT AGENDA qa 1. Resolution Directing Payment of Bills (Resolution 80Sf) 2. Applications (list to be supplied at meeting) 3. Submit claim from Patricia Arons to insurance agency. 2 4. Various requests for se er bill adjustments. 5. Garbage Waiver - Admin. Code No. 13-335 6. Beer Permit - Lumberjac Days - Chamber of Commerce 7. Request to hang ban~er St. Croix Area United Way COUNCIL REQUEST ITEMS STAFF REPORTS (continued) COMMUNICATIONSIFYI (enclose list) QUESTIONS/COMMENTS FROM NEW MEDIA ADJOURNMENT to Executive Se sion (AFSCME Contract) 3 '. 4 . . . . ~il~te~ _ THE BIRTHPLACE OF MINNESOTA ~ TO: Mayor and City Council Diane Blazek, Finance Director~t) June 1, 1989 FR: DA: RE: 4TH OF JULY FIREWORKS In the past, the Northern Lighters has put on the fireworks display for the 4th of July celebration. Also, the City has purchased an endorsement to the LMCIT insurance policy to cover the fireworks. The LMCIT endorsement has a $600,000 limit and costs $500. It is recommended by our insurance agent to have an additional liability policy from the Northern Lighters. Their policy would also name the City of Stillwater as an insured party. This policy would have a $300,000 limit and cost $475. . Th~ combined insurance limit for the fireworks would be $900,000. The City reimbursed the Northern Lighters in 1988 for the cost of their policy ($420) and is requesting the City reimburse them the cost of the policy for this year. OJL . CITY HAll: 216 NORTH FOURTH STillWATER. MINNESOTA 55082 PHONE: 612-439-6121 . . . " ~il~te~ _ THE BIRTHPLACE OF MINNESOTA i';) TO: Mayor and City Council ~b lL-. FR: Diane Blazek, Finance Director DA: June 2, 1989 c!J RE: $350,000 BOND ISSUE OF 1981 Background The $350,000 Improvement Bonds are scheduled for final payoff in 1991 with a balloon payment of $177,650. When the issue was sold, it was unknown whether there would be sufficient prepayments to pay the balloon payment. If not, it was anticipated that refinancing would be necessary. Analysis Estimated projections of revenues for 1989 with prepayments received to date ~1ould allow for total payoff of these bonds at the next interest date (8/1/89). We are not earning any arbitrage as the bonds have an interest rate of 9 percent. Ron Langness has been contacted in regards to calling the bonds for early prepayment and concurs with staff. It is estimated that the City could save approximately $3,500 by calling the bonds with costs of calling limited to publication costs and paying agent fees. Conclusion Council approval is needed to call the bonds at the 8/1/89 interest date and publication of notice at least 30 days prior to the call date. CITY HALL: 216 NORTH FOURTH STILLWATER, MINNESOTA 55082 PHONE: 612-439-6121 . CITY OF STILLWATER GENERAL FUND FOR THE PERIOD ENDING APRIL 30, 1989 CUrrent Year to Under Percentage Month Date Annual (OVer) Received Actual Actual Budget Budget Expended Revenues Taxes 68,172 68 , 17 2 2,329,652 2,261,480 2.9 Licenses & Permtis 8,190 30,479 120,380 89,901 6.8 Intergovernmental 9,262 1,404,066 1,394,804 .7 Charges for Services 2,434 13,938 184,945 171,007 1.3 Fines and Forfeits 9,136 25,326 95,000 69,674 26.7 Miscellaneous 837 46,733 3,751 (42,.982) 1245.8 Transfers 28,721 114,909 344,727 229,818 33.3 Total Revenues 117,496 308,819 4,482,521 4,173,702 6.9 Expenditures Mayor and Council 3,374 13 , 156 41,644 28,488 31.6 Admin & Finance 29,201 112,948 438,733 325,785 25.7 Legal/City Attorney 12,372 42,477 130,580 88,103 32.5 411tant/City Hall 4,292 15,768 84,450 68;682 18.6 lice 70,674 304,581 1,074,284 769,703- 28.4 Fire 28,810 198,290 517 ,217 318,927 38.3 Civil Defense 262 1,034 4,075 3,041 25.4 Public Works 5,009 33,659 137,899 104,240 24.4 Street 20,802 133,381 652,688 519,307 20.4 Equip. Maint. Shop 7,325 32,251 108,639 76,388 29.7 Planning & Inspection 15,220 58,279 199,160 140,B81 29.3 Signs & Lighting 8,962 26,456 116,000 89,544 22.8 Unallocated 19,264 34,600 15,336 55.7 Transers out 66,183 264,730 794,191 529,461 33.3 Total Expenditures 272 , 486 1,256,274 4,334,160 3,077,886 29.0 . . r illwater "~ -' - ~~ THE BIRTHPLACE OF MINNESOTA . J TO: FROM: MAYOR AND CITY COUNCIL STEVE RUSSELL, COMMUNITY DEVELOPMENT DIRECTOR OiL- DATE: MAY 26, 1989 SUBJECT: SUMMER INTERNS The summer interns would assist the Planning Department with special projects including data collection for the West Stillwater Business Park Study and updating the City Zoning Ordinance. The interns would work from June 12th to September 1st. One intern would work 1/2 time, the other 3/4 time. The pay would be $7.00 per hour. The total cost of the summer work would be $4,200. This amount was budgeted for in the 1989 planning budget. . Michael Robertson will receive a MA degree in Urban and Regional Studies from Mankato State this summer. He has good experience working with computers from various agencies. I will use his computer expertise in setting up planning applications and records system' on the department's Planning Commission with the West Stillwater Industrial Park work (resume attached). Tony Zeuli is a senior at Hamline University and has a variety of work experience from Cat Ballou's Bar manager to Rudy Boschwitz's assistant. Tony will be assigned the task of working with the City Attorney and myself in updating the Zoning Ordinance. The whole ordinance should be rewritten to ensure language consistency and clear organization. This is the type of work that needs to be done but is put off. Both interns appear highly qualified for the work. RECOMMENDATION: Approval of interns for summer hiring. ATTACHMENTS: Resumes. . CITY HALL: 216 NORTH FOURTH STillWATER, MINNESOTA 55082 PHONE: 612-439-6121 . MAGNUSON & DIEPERINK ATTORNEYS AT LAW THE GRAND GARAGE & GALLERY 324 SOUTH MAIN STREET STILLWATER, MINNESOTA 55082 (612) 439-9464 David T. Magnuson Ann L. Dieperink Richard C. Ilkka April 21, 1989 Susan L. Thorn Administrative Assistant Kathryn J. Nelson Legal Assistant Enclosed is a resume of Anthony Zeuli who I think is uniquely suited to help you with regard to the summer position that you talked about at Tuesday night's meeting. I know him and his father personally and he is a fine young man. His father runs Lineer Electric and they are a family with extensive roots in the area. I would give him my highest rating. . I hope you can help_him. . Mr. Steve Russell Community Development Director 216 North Fourth Street Stillwater, MN 55082 Re: Anthony R. Zeuli Dear Steve: Yours very truly, MAGNUSON & DIEPERINK ~, David T. Magnuson DTMlkn Enclosure . '.... . . . RNTHONY R I CHRRD ZEUL I 426 South Greeley Street Stillwater, Minnesota ~~ Home: (612) 439-1144, Capital #312, Tenley American University Washington, D.C. 20016 o OJ [CT I U [: A position combining research with an exposure to legal professions. [DUCRTlON: Hamline University, S1. Paul, Minnesota GPA: 3.7 (A=4.0) * Bachelor of Arts, Majors in Political Science and Physics, 5/90 * Washington, D.C. Semester, 1/89 - 5/89 [HPERIENCE: United States Senate Intern: Senator Rudy Boschwitz, MN 506 Hart Senate Office Building, Washington, D.C. 20510 RCTIUITIES: HONORS: REFERENCES: * Research and writing in many legislative areas. * Specialized in small business and justice issues. * Completed extensive research in rural economic policy. Department Assistant: Hamline University Political Science Department, S1. Paul, MN. Sept. 87-Dec. 88 * Proctor for a State & Local Gov't. class, supervised testing and grading. * Aided Dr. Harrigan in duties including text revision, computer storage and general office, duties. * Tutorial leader for Introduction to Political Research class. Assistant Bar Manaaer: S1. Croix Boat & Packet and Cat Ballous Restaurant, 112 N. Main St., Stillwater, MN, May 84 - Jan 89 * Supervised bartenders and waitrons. * Performed billing duties and personal contact with businesses. * Assisted with inventory of bars, dealt with correspondents and filled in where needed. Minnesota State Senate Intern: Sen. Gary Laidig, District 55 St. Paul, MN Jan 87 - June 87 * Aided Senator Laidig with constituent issues. * Was responsible for letters dealing with specific topics and issues. * Performed extensive research on current topics. ' President and Treasurer of Peterson Hall Council; Model United Nations; Hamline Golf Team; Student Council. Deans List all semesters, Ordway Award, Stillwater HS Honors. Available upon request. . . . . Apri112,1989 . -. Steve Russell Community Development Director 216 North 4th Street City of Stillwater Stillwat.er. MN 55082 ~,t./l Y ~ \"1 \,~~ ~ \ Dear Steve: 1 am interested in an internship position in Stillwater. I had heard from Anne Terwedo that you might have an internship available. Anne aild I were in a planning class last spring at Mankato State. I am currently three quarters of the way through my Master's program and will be finished with all my classes in June. My background includes a variety of planning and computer applications experience. These include internships with the City Planning Departments' of Minneapolis and St. Paul. I also spent a year with a company designing a computer system for mUnicipalities. My computer experience includes five years as a computer programmer prior to entering the graduate program in Urban Studies at'Mankato State. In the past I have used a variety of computers in a number of different project areas. I enjoy training people in the use of computers. I see the computer as a useful tool for better analysis of information and the creation of better policies and plans. I have heard good things from Anne about the City of Stillwater and would like to talk with you about an internship... Enclosed with this letter is my resume. I will be calling you next week to set up a time where we can talk and I can show you my professional portfolio. Thank you for taking the time to review my letter and resume. Sincerely, ~~~ Michael Robertson . lit ~ . . . MICHAEL ROBERTSON Box 63, Route 9 Mankato, MN 56001 (507)387-4108 PROFESSIONAL EXPERIENCE MERCHANDISING FIXTURES INC., Coon Rapids, MN Computer Programmer, May 1985 to July 1987 Identified and Developed new programs for end users Maintained and Enhanced existing databases and programs Trained word processing and computer operators Managed telecommunications system INDEPENDENT CONTRACT PROGRAMMER January 1984 to April 1985 Designed budget tracking systems Trained word processing operators Analyzed financial information Designed software training programs Analyzed demographic information \ PLANNING DATA CENTER, St. Paul, MN Division Director, February 1983 to December 1984 Researched, Developed and Marketed a computer-based Geographical Information System (GIS) for municipalities Supervised staff for design and development of GIS system . Designed and Implemented software and hardware training programs for clients MN DEPARTMENT OF NATURAL RESOURCES, St. Paul, MN Research Assistant, October 1981 to December 1982 Established State's first computerized databases for topographical information on Minnesota lakes and rivers - ST. PAUL PLANNING DEPARTMENT, St. Paul, MN Intern, March 1981 to July 1981 Analyzed and Developed policies for the downtown circulation plan Researched and Analyzed U.S. Army Corps of Engineers' proposed flood wall height increase to determine its cost for City services, private companies, and landowners; Presented recommendations to the Mayor < . '~ . . . MINNEAPOLIS PLANNING DEPARTMENT, Minneapolis, MN Intern, October 1980 to March 1981 Documented and Mapped accurate land use pattern and right-of-way usage_for railroad shippers in the city Designed and Conducted survey of rail shippers in the city to determine future rail needs EDUCA TION Master of Arts in Urban and Regional Studies, Mankato State University. Graduation expected Summer 1989 Bachelor of Arts in Geography, University of Minnesota. Awarded Spring 1980. PERSONAL INFORMATION Self-financed college education. \ Finisher in City of Lakes Marathon, October 1980 Hobbies include; Volleyball, Reading, Hiking & Camping REFERENCES Available on request .DEPARTMENT STAFF REQUEST ITEM __!~Eli~~2rk~______________-_ MEETING DATE June 6, 1989 DESCRIPTION OF REQUEST ~Briefly outline what the request is) _______~h~_.!:~0j~!!!.~j.!Llb.~_t11.QJ1Lo~.La.L.~Qf._~JQ_!lQ"O_r1LBQ~<i...r~9.!.Les_Ln.Q-D~.r:k.~- on the north side of street --------------------------------------------------------------------- --------------------------------------------------------------------- --------------------------------------------------------------------- --------------------------------------------------- --------------~-- , . ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~=~~~~~~~~~~~~~- _______________________________________________~L~---- ' ----------------------------------------------- --------------------------------------------------------------------- --------------------------------------------------------------------- . -------------------------------------------------------------------- FINANCIAL IMPACT (Briefly otitline associated with this request and needed to fund the request) Cost of sign approximately $60. the Cl:,st s, if any, that al"~e the proposed source of the funds --------------------------------------------------------------------- --------------------------------------------------------------------- --------------------------------------------------------------------- --------------------------------------------------------------------- --------------------------------------------------------------------- ADDITIONAL INFORMATION ATTACHED YES NO x ALL COUNCIL REQUEST IT MINIMUM OF FIV~K G COUNCIL MEETING IN R ER TO SUBMITTED BY ~ --------------- v' BE SUBMITTED TO THE CITY CLERK A O~. T. THE NEXT REGULARLY SCHEDULED ED I THE COUNCIL MATERIAL PACKET. y/; '1 DATE 5- s/~ cf 9 --------------- -----------~--- . , .. . illwater . ~ ~ TH::-IRTHPlACE OF MINNESOTA ~ TO: Mayor and City Council FR: City Coordinator DA: June 2, 1989 RE: RESOLUTION ESTABLISHING PARlCING REGULATIONS ON INDUSTRIAL BLVD. Last Fall, Press On Inc., requested some no parking areas and some one hour parking areas on Industrial Blvd. They also requested a crosswalk near their parking lot. The parking signs (including the painting of curbs) and the crosswalk were installed. However, the City Council approved the request by motion rather than by Resolution because they were not informed of the appropriate action to be taken. . A Resolution is now needed to give official authority for enforcing the no parking or limited parking area. Therefore, the enclosed resolution should be adopted. 7I:u. . CITY HAll: 216 NORTH FOURTH STillWATER, MINNESOTA 55082 PHONE: 612-439-6121 . . . RESOLUTION NO. ESTABLISHING NO PARKING AREAS, ONE HOUR PARKING AREAS AND A CROSSWALK ON INDUSTRIAL BOULEVARD BE IT RESOLVED that the City Council of Stillwater hereby establishes the following parking restrictions and cross walk area on Industrial Boulevard: No parking on the east side of Industrial Boulevard from the north side of State Highway No. 36 frontage road to a point 360 feet south of the intersection of Industrial Boulevard except that one hour parking shall be allowed from a point beginning 570 feet from the north side of State Highway No. 36 frontage road for a distance of 60 feet and also from a point beginning 685 feet from the north side of State Highway No. 36 frontage road for a distance of 120 feet; and No parking on the west side of Industrial Boulevard from a point beginning 215 feet from the north side of State Highway No. 36 frontage road for a distance of 360 feet and from a point beginning 805 feet from the north side of State Highway No. 36 frontage road for a distance of 430 feet; and A pedestrian crosswalk at a location 870 feet from the north side of State Highway No. 36 frontage road. . Adopted by the City Council this 6th day of June, 1989. Mayor Attest: Acting City Clerk . .. . / / STAFF REQUEST ITEM DEPARTMENT ~L~~___~LfJ!_~L~€_~ MEETING DATE DESCRIPTION OF REQUEST (Briefly outline what the request is) ___~L~~E~~~__~__~~~___~~______________________ _______~k~:J__B=~_.f".2~_B:._____~_ft.EkJJ:!!~____~S_~__L~__~ ______~~~~~~_L1t~~_____________________________4?_~_____:___ tU VvH-N ~ 5- ;;- ~ ... _______________________t_____________________________________________ --------~~-~--~~------------------------------~~-------- 1~1..L. \J Y - - u k:J S s:E. .... ______________L__~__________________________________________~_____ ________~~~---~!te~T----------------------~~~---~~----__:___ FINANCIAL IMPACT (Briefly outline associated with this request and needed to fund the request) the costs, if any, that are the proposed source of the funds ADDITIONAL INFORMATION ATTACHED YES NO ALL COUNCIL REQUEST MINIMUM OF FIVE COUNC I L 1"1EET I NG ITEMS ~~~I BE SUBMITTED TO THE CITY CLERK A RKING DAYS PRIOR TO THE NEXT REGULARLY SCHEDULED DER ~B}lPLACED IN THE COUNCIL MATERIAL ;rACKET. ~~_________ DATE ~~~~____ SU8MITTED BY / . DEPARTMENT SLAFF REQUEST~ITEM Jl?L~L~(L~_,,;:E::8~TING DESCRIPTION OF REQUEST (Briefly outline what the request is) DATE ,jJ IV l.=: l.. (' 9' P 9 -----------1--- --------------------------------------------------------------------- ________~J_t:~~~_~~__________________________~~------------- . l'f c;-t.' J / ___________________~i.1_~~___~-~J~----~----~~~~-~A/~ --------------------------------------------------------------------- ----------------------------------~---------------------------------- --------------------------------------------------------------------- --------------------------------------------------------------------- --------------------------------------------------------------------- --------------------------------------------------------------------- --------------------------------------------------------------------- . --------------------------------------------------------------------- -------------------------------------------------------------------- FINANCIAL IMPACT (Briefly outline associated with this request and needed to fund the request) the costs, if any, that are the proposed source of the funds --------------------------------------------------------------------- ----------~---------------------------------------------------------- --------------------------------------------------------------------- --------------------------------------------------------------------- --------------------------------------------------------------------- ADDITIONAL INFORMATION ATTACHED YES NO ALL COUNCIL REQUEST ITEMS ~~~I BE SUBMITTED TO THE CITY CLERK A MINIMUM OF FIVE WO.R'" G ~DAYS P lOR TO ..THE NEXT REGULARLY SCHEDULED COUNCIL MEETING IN eRO 0 BE sPC~IN THE COUNCIL MATER}A~PACKET. SUBMITTED BY _~ _'.:fJgt;2:~~ 0'k~- DATE _~/-d2.____- . " , . "'SeH . . ENGINEERS. ARCHITECTS. PLANNERS 222 EAST LITTLE CANADA ROAD, ST. PAUL, MINNESOTA 55117 612 484-0272 June 6, 1989 RE: CITY OF STILLWATER CITY ENGINEER SEH FILE NO. 89114 Mayor and City Council City of Stillwater City Hall 216 North Fourth Street Stillwater, MN 55082 Dear Council Members: As you requested, we have investigated the grading provided for the new baseball diamond at Lilly Lake Park. This ball diamond is located such that a portion of the existing hillside has been excavated to provide additional outfield distance for baseball. Approximately 250 feet of hillside adjacent to center and right outfield has been excavated. The excavation rises nearly vertically for 8 feet at the highest point. The hillside above the cut is wooded and rises at a rate of approximately 1 foot vertically for every 4 feet horizontally. The exposed soil is a fine sand and highly erodible. If the slope were to be stabilized, rise for every 3 feet horizontal. that could be mowed and seed and protection such as netting installed. we would recommend a 1 foot This would provide a slope topsoil with some erosion However, this type of slope would entail cutting back an addi tional 100 feet or so to intercept the natural hillside slope. This would also involve removal of numerous trees. We feel this would detract from the natural setting and may harm the natural erosion control provided by the existing vegetation. SHORT ELLIOTT HENDRICKSON INC. CHIPPEWA FALLS, WISCONSIN ST. PAUL, MINNESOTA ... '" . . . Mayor and City Council Page #2 June 6, 1989 We recommend that a retaining wall near the current toe of slope be considered by the City as a better alternative. The exposed height of this wall would be approximately 5 feet at the right field foul line and rise to a maximum height of approximately 8 feet in right center field. The wall could then taper off to end in center field. The wall would be approximately 250 feet in length. The top of the wall could match the existing back slope wi th a minimum amount of disturbance to the natural slope and vegetation. This remaining slope above the wall could then be topsoiled and seeded. Several project. types of retaining walls Some suggested walls are: could be utilized for this TREATED TIMBER WITH TIEBACK ANCHORS STONE RUBBLE POURED CONCRETE LOFFELSTEIN PRECAST MODULES (Similar to the wall in front of Battle Hol10w Antiques on Fourth Street near T.H. 36) KEYSTONE PRECAST MODULES (This provides the appearance of a stonewall) We evaluated all of these wall types for preliminary cost and service life, maintenance and appearance. The wall type that best meets this criteria and is the least expensive is the Keystone wall. We estimate the construction cost for 1,700 square feet of Keystone wall to be $17,800. This estimated cost does not include topsoil, seeding, engineering and inspection. Since the estimated cost is more than $15,000, if a contractor were to perform the work, it would require advertising and competitive bids. We have coordinated with Mr. Bleckum in reviewing this project. If the Council has any questions or wishes to discuss this further, we would be happy to meet with you at your convenience. Sincerely, REM/cmb Richard E. Moore City Engineer cc: Richard Bleckum, Director of Parks .DEPARTMENT ST~FF REQUEST ITEM Public Works MESTING DATE June 6, 1989 DESCRIPTION OF REQUEST (Briefly outline what the request is) ___!~~J?i'p~_~~j_!~.P~!!!e.!.njl_.!:~lt_~~~_~~_!:!:~~1:..e..9_~_~l?..~~E~!.j~_!~~j!~~~~l_~!. 404 South Brick Street. --------------------------------------------------------------------- ~~=~=~~==~==~==~~==~=~=~~~~~~~~~~~~~~=~~~~~=~=~~.. =-7--=====~===~====== li~ --------------------------------------------1:f---------------------- , . --------------------------------------------------------------------- --------------------------------------------------------------------- , --------------------------------------------------------------------- ------ -========~===========--================-~:::~=======~==:======~==:::~-------_._- - FINANCIAL IMPACT (Briefly outline associated with this request and needed to fund the request) the c.:.sts, if any, that are the proposed source of the funds ___I~~~~~L~~!_L~~i~~~2_Qi~~J_j~~~J2_I~_~I_____________--------------- --------------------------------------------------------------------- --------------------------------------------------------------------- --------------------------------------------------------------------- --------------------------------------------------------------------- ADDITIONAL INFORMATION ATTACHED YES NoA__ SUBMITTED BY BE SUBMITTED TO THE CITY CLERK A OR TO THE NEXT REGULARLY SCHEDULED ED ~CoUNCIL MATE:;AL PACKET. DATE ___~_:~~:~~ ALL COUNCIL MINIMUM OF FIVE COUNCIL MEt::TING . . . . r illwater ~ ---~ THE BIRTHPLACE OF MINNESOTA ~ TO: Mayor and City Council ~ ~ FR: Diane Blazek, Finance Director L/ DA: June 2, 1989 RE: MAPLE ISLAND SEWER RATES Background > 'ff;{A t1 f.,~ ". " )(' ~; ( .. . . ~ 1 .'f J .~ 9-' 1.1 /1 /1/ v ,\.1"-' ~ k l ;! i '1. './..1-1 ~/-t/ ~"[1"'/ .:r ~jJ /yvl.~{ Maple Island has been paying a flat fee in the amount of $2,650.50 per quarter for sewer service charges since the 1st quarter of 1985. With the recent increase in sewer rates for the entire City, an adjustment to the flat fee for Maple Island seems appropriate. Analysis Maple Island total wastewater flow for 1988 was 13.5 million gallons, as reported in their seim-annual Industrial Waste Discharge Reports. - The total discharge was obtained by flow measuring equipment installed at the Company's monitoring point. MWCC inspectors tested the Maple Island meter in September 1988 for discharge verification. Conclusion The discharge flows reported for 1988 are consistent with prior years flows reported by Maple Island. The 1985 rate was based on the City's Budgeted ~enditures and MWCC Estimated Usage for 1984. The following table shows the actual expenditures, costs and charges to Maple Island for the years 1985-1989: 1985 1986 1987 Actual Expense {net of depreciation} 644,097 820,092 788,173 Actual Gallons/est. gallons (88-89) 878 875 828 Cost per million gal. 735 937 951 Cost for 13.5 million gallons 9,909 12,652 12,850 Cost per quarter 2,477 3,163 3,213 Current charge to Maple Island per quarter 2,651 2,651 2,651 Charge to Maple Island if sewer rate same as remainder of City 4,413 4,413 4,413 1988 1989 912,811 968,725 890 890 1,025 1,088 13,846 14,694 3,462 3,674 2,651 2,651 4,413 7,106 CITY HALL: 216 NORTH FOURTH STILLWATER, MINNESOTA 55082 PHONE: 612-439-6121 . . . r illwater "~ -- - ~ ---- -~ THE BIRTHPLACE OF MINNESOTA J "' U'"l,' , .. .{..'-' L/ . 7} ('" " -"\ .lc.k._ ",;:r -",.-- feY TO: FROM: DATE: SUBJECT: CITY COUNCIL STEVE RUSSELL, COMMUNITY DEVELOPMENT DIRECTOR JUNE 6, 1989 PAYMENT OF CLAIMS AGAINST ARKELL DEVELOPMENT, COTTAGES OF STILLWATER, PHASE II. The Development Agreement for Cottages of Stillwater Phase II, owned by Harold Teasdale and Robert Iverson requires that they settle claims against Cottages of Stillwater, Phase II. They have indicated they were not aware of the claims when they purchased the project from Arkell Development and that they do not have money to settle all claims at this time but are willing to work with claimants to settle the disputes. Page Three of the letter from Mr. Teasdale's attorney indicates that they anticipate resolving the disputes before the Development AGreement is executed. Usually the City does not enter into claims between contractor and developer but because of the City involvement through TIF assistance, we feel some obligation to resolve the claims. Mr. Teasdale's proposal is reasonable to the extent that he payoff or get agreement from the claimants regarding the payoff. RECOMMENDATION: That the City Council accept the proposal from the current owners settling the claims against Phase II, Cottages and that Mr. Teasdale and Mr. Iverson reach a written agreement, either by payment or other methods, with each claimant before Development Agreement approval. ATTACHMENT: Letter June 1, 1989. CITY HAll: 216 NORTH FOURTH STillWATER, MINNESOTA 55082 PHONE: 612-439-6121 . . . . , '; BARNA, GUZY, MERRILL, HYNES & GIANCOLA, LTD. ATTORNEYS AT LAW ROBERT A. GUZV RICHARD A. MERRILL ROBERT C. HYNES GABRIEL D. GIANCOLA PAUL E. GODLEWSKI RONALD B. PETERSON JEFFREY S. JOHNSON JON P. ERICKSON DAVID A. COSSI THOMAS L DONOVAN KENNETH A. AMDAHL RONALD L. GREENLEY SHARON L HALL MICHAEL F. HURLEY STEPHAN R. NICOL WILLIAM M. HANSEN JON G. TRANGSRUD JOAN M. THIEMAN KAREN J. KINGSLEY PATRICK J. FUGINA DANIEL D. STEPHAN JENNY L WALKER JOAN M. QUADE LUKE R. STELLPFLUG STEVEN L MACKEY PATRICIA A. ZENNER 3989 Central Avenue N.E., Suite 600 Minneapolis, Minnesota 55421-3985 Phone (612) 788-1644 Telecopier (612) 788-3305 70 I Fourth Avenue South, Suire 500 Minneapolis, Minnesoca 55415.1631 June 1, 1989 ~r. steven Russell City Planner City of Stillwater 216 North 4th Street Stillwa~er, MN 55082 (> AI.1IO Mr. -RE)lge~t Magnuson, Esq. Magnuson & Dieperink Suite 260 The Grand Garage 324 South Main Street Stillwater, MN 55082 OF COUNSEL PETER BARNA LAWRENCE M. NAWROCKI PATENT, COPYRIGHT AND TRADEMARK LAW Gentlemen: PA-v\t) Mr. ~ec~ Magnuson, City Attorney, recently drafted a proposed Development Agreement Relating to Cottages of Stillwater Phase III ("Development Agreement") by and between the City of Stillwater ("City") and Robert Iverseri Development Corporation ("Iversen") and Teasdale & Associates, Ltd. ("Teasdale"). Section 7.0l(c) of the Development Agreement provided that certain unpaid bills relating to the construction of Phase II of the Cottages of Stillwater be paid prior to any building permits being issued with respect to Phase III. Teasdale, Iversen and the City have discussed Section 7.01(c) of the proposed Development Agreement over the past weeks. This letter constitutes a proposal by Teasdale and Iversen wherein the goals of both the City and Teasdale/Iversen can be achieved. Teasdale/Iversen understand the concern of the City with respect to the unpaid bills incurred by The Arkell Development Corporation ("Arkell Development") during the construction of Phase II. Teasdale/Iversen are prepared to address those concerns to the extent monies are available out of the Phase III budget. However, for the record, it is important that the City understand that neither Teasdale/Iversen nor the owner of Phase II, Orleans Home Number Two, A Minnesota Limited Partnership . . . . ~ June 1, 1989 Page Two ("Orleans II"), were responsible for the failure to pay the bills in question in a timely manner. Harold Teasdale headed up an effort to "syndicate" Orleans II and thus bring in investors as limited partners to invest in Phase II. That syndication was successful and investor funds were escrowed pending (i) completion of Phase II and (ii) satisfactory evidence of the payment of all Phase II construction costs and the execution of lien waivers. Escrow was broken with the knowledge of the various promissory notes executed by Arkell Development but with the understanding that those notes were the sole responsibility of Arkell Development and not Orleans II. It was also agreed that the notes would in fact be paid within the 90 day term of the notes. It is therefore the position of Orleans II that it is not legally responsible for the promissory notes in question. However, in consideration of the concerns of the City, Iversen/Teasdale are willing to attempt to achieve a settlement on those unpaid Phase II and Phase III bills which are justified. This can only be done within the context of a budget for Phase III which makes economic sense to all parties, including new investors in the to be formed partnership which will ow~ Phase III. The first step in this process is to delineate which of the potential claims for unpaid bills pertaining to the completion of Phase II are justified. The attached list detail claims totalling $184,838.28. The attached list differs from the amounts set forth in Section 7.01(c) of the proposed Development Agreement in the following manner: 1. Krongard Construction has been paid $5,000.00 (6/6/88) on its note of $21,982.00 leaving a balance of $16,982.00. I 2. Margolis Brothers have been/paid $8,000.00 (6/6/88) on its original contract sum of $16,925.07 leaving a balance of $8,925.07. 3. Pope Associates have a claim of $17,918.76 on the Phase III land while Tushie Montgomery Architects has none. 4. Paul J. Keleher's claim for $8,400.00 is not a claim against either Phase II or Phase III but rather an employment dispute with Arkell Development and is therefore deleted. The attached list of Phase II and Phase III claimants, therefore, sets forth 14 Phase II promissory notes totalling $97,236.20, the Margolis mechanic's lien on Phase II totalling $8,925.07, the .June 1, 1989 Page Three . Cosmopolitan Bank mortgage on Phase III which is estimated to have a payoff amount due as of July 1, 1989, of $59,404.11, and certain disputed or questionable claims with respect to Phase III totalling $19,272.90. Again, these claims total $184,838.28. The City, the claimants and all other interested parties must realize that the Phase III budget cannot afford the payment in full of the above total of $184,838.28. Rather, an acceptable compromise must be reached between Teasdale/Iversen and the various claimants which, on the one hand, allows Phase III to go forward and, on the other hand, provides enough compensation to the claimants to result in the release of any further claims. Teasdale/Iversen will in good faith attempt to negotiate such a settlement with the claimants prior to the construction of Phase III. Therefore, it is anticipated that the matter of the Phase II and Phase III claimants will have been resolved prior to the execution of the Phase III Development Agreement. It follows that Section 7.0l(c) should be deleted from the proposed draft of the Development Agreement. ~ . In negotiating with the various claimants, Teasdale/Iversen will offer both cash and an assignment of the future "back-end" sale proceeds due to John Arkell as a partial general partner of Orleans One and Orleans Two. While Harold Teasdale has discussed possible offers and settlement scenarios with both you and the various claimants, Teasdale/Iversen must retain the flexibility' to structure the settlement on terms to be negotiated between the parties. Again, all parties must realize that failure to reach such a settlement will mean, in part, that Phase III will not go forward at this time. If that is the case, the ability of the various claimants to collect from Orleans Two on either the promissory notes or otherwise is very questionable. Therefore, an equitable compromise is mutually beneficial to all parties. Another factor which will be included in the settlement of these bills is that Teasdale/Iversen will require that contractors who have problems to correct on Phase II come back and complete these corrections. One of the major expenses at Phase II so far has been the correcting of construction items which were deficient. Teasdale/Iversen make this proposal with the hope that Phase III can go forward to the benefit of all concerned. We stand willing to discuss this matter further with you. Sincerely yours, ~~~ Thomas L. Donovan ~ . /lj cc: Mr. Harold W. Teasdale Mr. Robert Iversen ., . 4 PHASE II AND PHASE III CLAIMANTS " Phase II promissory Notes: Name Phone No. Krongard Construction Junker Sanitation Pro Tec Linner Electric Leslie Floors E & H Earthmovers Buck's Blacktop Action Overhead Door Empire Painting Hollenbeck-Nelson Quality Drywall State Mechanical Pat Iwan Arrow Building Center Mechanic Lien on Phase II: Margolis Brothers . Phase III Mortgage: Cosmopolitan Bank Interest thru 7/1/89 . Disputed Claims On Phase III: Pope Associates Westwood Planning 430-2314 439-7135 483-3554 439-4072 770-3389 436-6055 484-6399 447-4487 861-7291 462-5205 463-8220 633-1964 439-3518 488-7258 439-3050 642-9200 424-8862 Note $16,982.00 ----./ 1,938.00 9,049.00 12,706.45 8,052.14 16,946.16 12,258.00 3,220.00 300.00 5,000.50 1,058.33 4,415.98 2,818.02 2,491.62 SUBTOTAL: 8,925.07 SUBTOTAL: $52,500.00 6,904.11 SUBTOTAL: 17,918.76--- 1,354.14 SUBTOTAL: TOTAL: $97,236.20 $ 8,925.07 $59,404.11 $19,272.90 $184.838.28 ................. ............ .............. ......................... .................................................. .f:]jji . .......11Ifi!J . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...... ....... ... ..... ....... ... ... ........ .. . ......... . . ............. . .............. . .............. . .............. . .............. . . . . . . . . . . . . . .. . . . . . ..':'::::':::':;:;:;:::':':;:;:;:;:::::::;:::::;:::::::;:::;:;:::;:::: ..:.':::::::::;:;:::::':':::::;:: : :m:mm Washington County Housing and Redevelopment Authority Telephone (612) 458-0936 Telecopier (612) 458-1696 Park on the River · 455 Broadway Avenue · Saint Paul Park. Minnesota 55071 EXECUTIVE DIRECTOR Dennis l. Balyeat June 2, 1989 Mr. Nile Kriesel/Coordinator City of Stil 'water 216 North Fourth Street Stillwater, Minnesota 55082 Dear Ni I e: Please find enclosed a copy of the HRA's offer on Rivertown Commons. You wil I note that we have structured the offer to Include both tax credits that we as an HRA are able to provide and a potential tax exempt donation. The taxability Issue on the donation Is the ful I responslbil ity of the current owner and the HRA does not assume any liability because the Internal Revenue Service has determined that it is not an el igible tax deduction. . The offer is higher than we had intended to go; however we have been inforr:!1ed that a cash offer in excess of $4.5 mil I ion has been submitted by a private entity. Because of the size of the offer, given taday's Interest rates, a purchase based on the amount offered would inevitably mean a significant Increase In rent In order to handle debt service. Based on our discussions with other lenders, the rents that would be necessary to service the debt would definitely exceed Section 8 requirements, thereby causing dislocation of existing tenants. Therefore after consultation with the HRA Board, we felt that it-was in the best interest to attempt to purchase the building to ensure affordable housing to the existing tenants. Because our cash offer is not near the other offer, we do not know whether ours wil I be accepted. However, we wil I keep you abreast of the situation. If you have any questions, please do not hesitate to contact me. Sincerely, ~J ~ Dennis L. Balyeat Executive Director /m . Ene I osure ~ ~ ~ BOARD OF COMMISSIONERS District I. David Berg . District 2. M. Neal Erdahl · District 3. Robert Lafayette · District 4. David Kriesel · <." District 5. Elmer Morris . May 30, 1989 . Mr. Davia Brierton Dominium Group Incorporated ~140 Har~or Lane Plymouth, Minnesota 55447 RE: Rivertown Commons Project Dear David: You have requested a proposal regarding the Washington County HRA's purchase of the Rivertown Commons Project in stillwater, Minnesota. We propose that the HRA's 501(c) (3) non-profit entity, the Washinc;ton County DevelQpment Corporation ("WCDC") purchase Rivertown Commons by usIng tax-exempt bonds and structuring a limited partnership tor the sale Of the low incQme tax credits. The WCDC would purchase the project for approximately $5,044,342, which purchase price would include transfer of the projects reserves to WCDC. This scenario would represent a "net to partnership" number of approximately $1,930,000, inoludinq a charitable contribution of $260,000. Please refer to Exhibit A for a complete summary of the purchase price calculation. As you know, the 10 year "placed in service datell is not until March, 1990. Therefore, this proposal is contin~ent upon 1) the extension ot low income tax credits past the~r 12/31/89 sunset date, 2) the availability of private ,ctivity bond allocationT 3) approval of the Washinqton County HRA Board; and 4) approval of legal counsel to the HRA. We are prepared to discuss a small non-refundable or larger, refundable downpayment toward the ultimate purchase of the project. Please feel free to to call with any questions. Very truly yours, Sam Grittith CC: Laura C. Pioake John G. Wenker . . . . 1989 Projected Income: 6-2 Bar. , $555 90-1 Bd~. @ $495 tess 1% Vaoancy 1988 Other Income TOTAL INCOQ Less Expense.: A<1ministra.tive Management Fee Mainten&nc. . Ut.ilities Insurance Taxes EXHIBIT A Rivertown Commons Financing Plan $ 39,960 534,~OO $574,560 (5,745) 4,510 S573.325 $50,577 30,371 57,277 40,728 11,805 158.694 -!249.4S21 $323.873 waDe's Net Operating Income Based on the WeDe's net operating income of $323,873. The Project could support a mortgage ot $3,591,000 as determined below: 100% Net ~peratinq Income: Funds Availacle Annually to Pay Debt Service Assuming 1.05x Debt Service Coveraqe: Funds Available Semi-Annually to Pay Debt Service: Supportacle Debt A.suming 40 years of Amortization at an 8.25% Interest Rat.: $323,873 308,450 154,225 $3.591.000 . . . paqe Two Sources and Uses ot Funds: Sources Bond Proceeds Low Income Tax Credits (1) Project Reserve. Charitable Contribution (2) Yua Prepayment of MaPA Mortqaqe WCDCII Costs (3) Net to Partnership (cash) Net to Partnership (tax benefits) $3,591,000 1,000,000 453,342 260.000. ~~.304,:342 $3,058,170 315,000 1,671,172 260.000 $5.304.342. (1) Assumes an acquisition price of $5,044,342 less value of the land ($260,000) to yield a "qualified basis" of $5, 304 ~'342. 4% credit. for 10' years assumin9 a 52% present value of such credit equals $1,000,000. (2) Actual acquisition cost includes the $260,000; HRA or WCDC pays only $5,044,342. (3) Includes costs or issuing the bonds and fundinq initial reserves. ! " " . SPECIAL MEETING STILLWATER CITY COUNCIL MINUTES May 9, 1989 4:30 p.m. The Meeting was called to order by Mayor Abrahamson. Present: Councilmembers Bodlovick, Farrell, Kimble, Opheim, and Mayor Abrahamson Absent: None Also Present: City Coordinator Kriesel City Attorney Magnuson Public Safety Director Mawhorter Recording Secretary Schaubach others: Kristie Anderson, Kathy Cutler, Jim Junker, Bob Kondrasuk, Barb McGuire, Tim 'Schmoelke, Cal Stenso-Velo and SuzAnn Stenso-Velo Press: Mike Marsnik, Stillwater Gazette Julie Kink, st. Croix Valley Press . POppy DAY PROCLAMATION Motion by Councilmember Opheim, seconded by Councilmember Farrell to proclaim May 19, 1989 as Poppy Day in Stillwater. (All in favor) SOLID WASTE ADVISORY COMMITTEE REPORT City Coordinator Kriesel introduced-members of Waste Advisory Committee. The Committee members the results of their study of various options for programs. The Committee's recommendation is for a curbside recycling program (Option 3). the Solid summarized recycling voluntary Motion by Counci1member Farrell, seconded by Councilmember Kimble to adopt Option 3, and to ask the Committee to develop an implementation program for the City. (All in favor) (Council took a five-minute break and reconvened at 5:50 p.m.) Motion by Councilmember Kimble, seconded by Councilmember Opheim to appoint Tim Schmoelke and Bob Kondrasuk as full members of the Solid Waste Advisory Committee. (All in favor) POLICE DEPARTMENT SECRETARY . Motion by Councilmember Opheim, seconded by Councilmember Kimble to adopt the appropriate resolution approving the employment of Claudia Whitledge as Police Department Secretary effective May 15, 1989. (Resolution No. 8076) 1