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HomeMy WebLinkAbout2010-03-02 CC MIN410 'fillw 4 at:� IMF 114THPLACE ff ■Iff EFf to CITY COUNCIL MEETING March 2, 2010 REGULAR MEETING 4:30 P.M. Mayor Harycki called the meeting to order at 4:35 p.m. Present: Councilmembers Gag, Polehna, Roush and Mayor Harycki Absent: Councilmember Cook Staff present: City Administrator Hansen City Attorney Magnuson Community Development Director Turnblad Finance Director Harrison Fire Chief Glaser Police Chief Gannaway Public Works Director Sanders Administrative Secretary Manos OTHER BUSINESS Main Street IBA Introduction Kristen Klemetsrud, Savories, and Meg Brownson, Alfresco, were present to introduce the Council to the Independent Business Alliance (IBA). Ms. Klemetsrud said the Alliance grew out of a group of individual businesses that got together to discuss marketing issues for the Main Street area. She noted this is a national organization which the local group is affiliated with. She said the basic message of the IBA is to "shop locally," particularly to support locally -, independently -owned businesses. She reviewed some of the group's accomplishments to date, including preparing a map and directory of all businesses within the historic Main Street area; sponsoring its first community outreach project, Shopping and Dining for a Cause; May Day on Main Street; the Twinkle Parade; and Ladies Night Out. She spoke of efforts at developing additional partnerships, in addition to the current partnerships with Valley Outreach, Outreach Alliance, and the CVB. She also spoke to the amount of money returned to the community when people support local, independently - owned businesses. She said the main reason the group was formed was fiscal, a framework for dispersing funds that were expended on projects. Councilmember Roush asked what, if any, relationship the Alliance would have with the existing Chamber of Commerce. Ms. Brownson said the Alliance is simply a different business organization; she noted the president and vice City Council Meeting March 2, 2010 president of the IBA are Chamber members and a Chamber board member is a member of the IBA. Ms. Klemetsrud said the IBA's focus would be on smaller community events, while the Chamber can focus on larger marketing /tourism issues. She noted all three organizations, the IBA, CVB and Chamber are all going through a period of flux right now, but the intent is to work together. Councilmember Roush asked if the Alliance would be focused on a particular membership; Ms. Klemetsrud said, according to the by -laws of the national organization, franchise corporate entities cannot be members, but the IBA meetings are open to all. Mayor Harycki said he hoped the Alliance would get the word out to local and surrounding residents to come and explore downtown. Chamber Initiatives Jennifer Severson, Executive Director of the Stillwater Area Chamber of Commerce, provided an update on the Chamber's new initiatives. She stated one of the biggest changes is the Chamber's new location in the Heartland Office Park on Northwestern Avenue; she noted that the Chamber does represent four communities and access to those four communities was a factor in the new location. Some of the new initiatives highlighted included: government affairs and advocacy; business and economic development; and local marketing. Some activities highlighted related to the government affairs initiative were a local government forum; legislative conference calls and legislative coffees; and candidate forums. She stated the Chamber is committed to issues of importance to members, issues such as the new St. Croix River crossing and Highway 36, the levee wall project, Zephyr bike trail, and improved signage ordinances. Related to economic development, she stated that the Chamber is working on retention of existing businesses as well as attracting new business. She stated the Chamber is participating in the Grow Minnesota project and is a Business Connection partner, and the economic development committee is doing research into economic development in other communities. She also stated the Chamber is cooperating on the development of an economic prospectus for the area. Regarding local marketing, she said the Chamber is looking at increasing opportunities to connect local residents to local businesses, with the emphasis on doing business locally. She stated surveys of businesses and residents are being conducted, and the Chamber is redesigning its website to focus on a local audience, as well as tourists. She stated the Chamber is planning its first -ever Home and Garden Show and is also planning a Business Expo, open to all area businesses, on September 11. Ms. Severson also highlighted some of the Chamber's continued commitments - Summer Tuesdays, spring and fall art fairs, Harvest Fest and pumpkin weigh -off, and networking events. She reviewed some of the Chamber's accomplishments including the I Love Stillwater website. She said keys for continued success including working together, promoting a Page 2 of 16 City Council Meeting March 2, 2010 strong local economy, and providing new opportunities and new programs for businesses. Councilmember Polehna noted the City has made a major investment to having a unified representation of interests and expressed concerns after hearing the earlier presentation from the IBA and the Chamber's presentation that things might be returning to the earlier situation of the 1980s when there wasn't a unified approach. Ms. Severson said she looks at this as a three - legged stool with the Chamber, the CVB, and the Main Street IBA. She said the Chamber supports the initiative that the businesses are taking at working together, and also wants to make sure there is a combined voice, a clear voice, from the business community. Ms. Klemetsrud noted that downtown merchants have very specific needs and issues and that the IBA is intended to provide a forum for the downtown merchants to meet and discuss those issues. Ms. Klemetsrud said there is no intent for the IBA to be other than a complementary group to the Chamber. Ms. Severson agreed that this should not be a divisive move at all, and she noted the business community needs support from different directions and different entities to be successful. STAFF REPORTS Police Chief Gannaway told the Council the storm warning sirens need to be programmed. He said Washington County Emergency Management will be covering the cost of the programming. The Police Department's written activity report was included in the agenda packet. Fire Chief Glaser highlighted his department's activity report, including the number of emergency calls, code enforcement activities, administrative activities and equipment maintenance issues. Community Development Director Turnblad referred to the written report outlining his department's activities since the beginning of the year. He said in future he would include comparisons from previous years, if the Council would like to see those, as well as any other information the Council would like provided in the report. Mr. Turnblad stated the Comprehensive Plan update has been resubmitted to the Metropolitan Council and staff would be appearing at the Met Council and various Met Council committees to defend the City's plan; and it is hoped the City will be able to adopt the plan by the end of May. He also provided the Council with a new letter for noticing residents of public hearings and that the new letter was written in an effort to make the notice more understandable and helpful to residents. Page 3 of 16 City Council Meeting March 2, 2010 Mayor Harycki asked about an item in the written report related to time expended on reporting of building division activities to various other departments; Mr. Turnblad explained that relates to preparing reports to keep the other departments aware of any upcoming issues that might impact them. Public Works Director Sanders highlighted some of his department's written report. He said he is continuing to talk with the Corps of Engineers regarding the levee wall project and funding options and hopes to have those pinpointed within the next several weeks for a presentation to the Council. Mr. Sanders noted a conference for the Minnesota Waste Water Operators Association took place at the Public Works building last month and that a number of favorable comments were received and they look forward to hosting similar meetings /conferences. Mr. Sanders provided a flood update, with the latest forecast estimating a 50% chance of reaching flood stage of 687 elevation in the downtown area. He said that elevation is at about the east edge of the parking lots in Lowell Park. He said staff is looking into the acquisition of Jersey barriers in the event the level does go higher; and that MnDOT does have the barriers available, but the City would have to pick up and set up the barriers. He said the next flood forecast will come out March 19, and the City would have to make a quick decision as to whether to pick up the barriers. Mr. Sanders asked for authorization to proceed with obtaining the Jersey barriers if need be; Councilmember Polehna noted that spring weight restrictions will be going on roads soon and suggested that a decision ought to be made in the very near future. Councilmember Gag asked about the cost involved and whether costs would come out of the City's operational budget or whether costs could be billed to state or federal agencies. Mr. Sanders said if it is declared an emergency area, most costs would be borne by FEMA, but if it is minor or moderate flooding, the cost would be the City's. He said in 2001, the cost of obtaining, setting up and returning the Jersey barriers was about $30,000. On a question by Councilmember Gag, Mr. Sanders said the City has talked to sandbag suppliers and poly is available for wrapping, so that is not seen as a concern. He also stated that staff has also talked with pump suppliers and have an estimate of that cost. Mayor Harycki suggested that authorization to expend the $30,000 for the Jersey barriers ought to be given at this point, trusting the professional judgment of staff that the money be expended only if deemed necessary. City Administrator Hansen said initially the money would come out of the City's reserve funds, with reimbursement from FEMA if there is a declared flood event. Motion by Mayor Harycki, seconded by Councilmember Roush authorizing to expend the funds if deemed necessary, with the direction to check with City Administrator Hansen. Page 4 of. 16 City Council Meeting March 2, 2010 Mr. Hansen noted it is a risk of whether to expend the funds, but that staff would try to minimize that risk, but he would move on the side of caution. All in favor. Councilmember Roush asked whether if might not make sense to purchase Jersey barriers so the City wouldn't have to rent them in future; Mr. Sanders said staff could look into the cost. Mr. Sanders told the Council staff is no longer maintaining ice rinks due to the warmer weather and the angle of the sun and staff is out patching potholes. Finance Director Harrison stated in addition to regular activities, the Finance Department is working on finalizing the year -end audit. She stated that some preliminary audit work was done the week prior to the Council meeting. She told the Council the annual audit is scheduled for the week of March 29. City Administrator Hansen informed the Council that he had met with Robert Austin Beaudreau, music director for the American Wind Symphony Orchestra, which will be touring this area in 2010. He said the Orchestra would like to stop at Stillwater and put on several concerts. He said the cost is about $30,000. He stated that he informed the representative that while the City didn't have $30,000, it might be able to provide other assistance, such as arranging for mooring areas. He said he did provide Mr. Beaudreau with other contacts, such as Art Reach Alliance, and Mr. Hansen suggested there might be other private fund - raising possibilities to enable the City to host the Orchestra. Mr. Hansen also informed the Council the City would be the scene of a small motion picture production scene and that arrangements had been made for providing extra police assistance. The meeting was recessed at 5:45 p.m. RECESSED MEETING Mayor Harycki called the recessed meeting to order at 7 p.m. Present: Councilmembers Gag, Polehna, Roush and Mayor Harycki Absent: Councilmember Cook Staff present: City Administrator Hansen City Attorney Magnuson Community Development Director Turnblad Finance Director Harrison Fire Chief Glaser Police Chief Gannaway Public Works Director Sanders Administration Secretary Manos 7:00 P.M. Page 5 of 16 City Council Meeting PLEDGE OF ALLEGIANCE March 2, 2010 Members of the Police and Fire departments led the Council and audience in the Pledge of Allegiance. APPROVAL OF MINUTES Motion by Councilmember Gag, seconded by Councilmember Polehna to approve the February 16, 2010, regular and executive session minutes. All in favor. PETITIONS, INDIVIDUALS, DELEGRATIONS & COMMENDATIONS Award of Valor for Officer Brad Allen Police Chief Gannaway read an Award of Valor recognizing Office Allen for his actions on Dec. 11, 2009, when he was first on the scene at a fatal shooting. The Council expressed its congratulations and thanks to all officers for their efforts. CVB Update — Steve Roll Mr. Roll, president of the Convention and Visitors Bureau board, provided an update on the CVB's 2009 year. He highlighted marketing efforts, including television and radio commercial advertising, as well as print advertising; hosting tours, magazine and travel writers, conferences, family reunions and other gatherings; funding of a number of local events, which support the CVB's mission of bringing overnight visitors to town; contracting with a public relations consultant who was successful in getting media coverage of a number of events; working with the Chamber and downtown merchants, and other partners, such as Explore Minnesota. Looking at 2010, Mr. Roll said the CVB website has been redesigned to be more comprehensive and provide more information to those planning weddings, group meetings /conferences, etc., and to get the agency more up to speed on the other forms of social networking sites. He said the CVB is also looking at working with the Chamber, merchants and possibly the City at getting information kiosk/booths downtown. He said they are also looking at contacting professional marketing firms to gauge things that have been done and whether they are the most cost effective approaches. He stated that financially, the economy is still a big challenge. While the 4 th quarter isn't finalized, that there is approximately $145,000 in tax revenue was collected, down from about $174,000 from the prior year. On a question by Councilmember Gag, Mr. Roll pointed out that the CVB really got going at about the time the economy started to take a downturn. He said he believes some of the things the CVB starting doing last year will pay off in 2010. Page 6 of 16 City Council Meeting March 2, 2010 He noted that this is technically the third year of the trial period for the CVB and asked what the Council would like to see from the CVB for the City to make the long -term decision regarding its future. Mayor Harycki suggested this might be a good retreat discussion topic. Councilmember Gag said it would be helpful to have some statistics /financial information. OPEN FORUM Alan Nettles stated he was in attendance regarding Item 9, the St. Croix Boat & Packet dock permit; he noted that item is on the agenda, but not scheduled as a discussion item. Mr. Nettles said he would reserve his comments if the item is to be continued as requested by Councilmember Cook. Mayor Harycki pointed out this item was been looked at five previous times, and also pointed out this item was not published as a public hearing so no other parties have been noticed. Mr. Nettles said he thought there were legal arguments involved. He said his client is a $6.2 million draw into the City with a wonderful view of the River that has 23 years of prescriptive rights; he said his client would be happy if the boat were moved elsewhere. Mr. Nettles asked that the item be continued to discuss other options. Mayor Harycki said the Council would take the matter up as Item 9 on the agenda. CONSENT AGENDA 1. Resolution 2010 -43, directing payments of bills 2. Resolution 2010 -44, approval of premises permit for gambling at the Harbor Bar Motion by Councilmember Gag, seconded by Councilmember Polehna to approve the Consent Agenda as listed. Ayes: Councilmembers Gag, Polehna, Roush and Mayor Harycki Nays: None Absent: Councilmember Cook PUBLIC HEARINGS This is the date and time for a public hearing to consider an amendment to City Code Section 38 -1, Public Nuisances by declaring outdoor wood boilers a public nuisance and prohibiting them in the City of Stillwater. Planner Pogge reviewed the background of the proposal to declare the outdoor boilers a nuisance. He reviewed the identified health hazards and what other communities are doing to regulate the boilers. He said the one outstanding issue is the effective date of the ordinance. He said the Council could amend the proposed language of the ordinance to permit the existing outdoor boiler() to remain in use until the end of the current winter heating season, May 1 for Page 7 of 16 City Council Meeting March 2, 2010 example. Mayor Harycki suggested reviewing the permit for the existing boiler to see if this is a secondary or primary source of heating for the household. Mayor Harycki opened the public hearing. Jeff Shaleen, 916 S. Holcombe St.. stated he is the owner of the wood boiler in question and did obtain a permit to install the boiler. He noted it was very expensive to install and that he thought it was wrong to amend the ordinance at this time as he did install the furnace under a building permit. He said it was known the appliance would smoke when the permit was issued. He said he thought it would be reasonable to grandfather this boiler in under the ordinance. On a question by Mayor Harycki, Mr. Shaleen said the primary furnace in the home is still operational. Councilmember Roush said staff dealt in good faith when the permit was issued, but with the overwhelming number of complaints received, the Council is considering making the boilers a nuisance. Councilmember Roush noted when the permit was issued, it did not come before the Council; he stated this was uncharted territory for the City and no one knew the ramifications of the outdoor boilers. Mr. Shaleen said only one neighbor has come to him with a complaint; Mr. Shaleen said he told the neighbor he could put in a taller stack and fan to make the boiler start faster and create less smoke. He said the stack now is 26' high, taller than most chimneys around him; he also noted that there are three residences near him that also burn wood as supplemental heat sources. City Attorney Magnuson noted communities have dealt with outdoor boilers in two ways, through the zoning code, which would render future outdoor furnaces not permissible but would grandfather in existing furnaces, or due to medical evidence and other data have declared the furnaces a nuisance and therefore eliminate them. Under the nuisance power, that people are not entitled to damages for the elimination of nuisances. No other comments were received, and the hearing was closed. Mayor Harycki noted this issue has generated a great number of phone calls /comments; he also said he understood Mr. Shaleen's position of having gone through the permit process. Mayor Harycki said the swing point for him was when a resident called and spoke of the asthma that has affected her children as a result of the furnace. Councilmember Gag said he was sensitive to the property owner, but said he would not like to see something similar next to his own house. Councilmember Gag said the City did research the issue and this is not a hasty decision. Page 8 of 16 City Council Meeting March 2, 2010 Motion by Councilmember Gag, seconded by Councilmember Polehna to approve the first reading of the an ordinance amendment to City Code Section 38 -1, Public Nuisances by declaring outdoor wood boilers a public nuisance and prohibiting them in the City of Stillwater Councilmember Polehna stated that he had received many phone calls with concerns about health issues. City Attorney Magnuson asked for direction about effective date for the second reading. Mayor Harycki said he would prefer effective upon publication; Councilmember Gag agreed with that position. Ayes: Councilmembers Gag, Polehna, Roush and Mayor Harycki Nays: None Absent: Councilmember Cook UNFINISHED BUSINESS Possible approval of forestry consultant contract for 2010 City Administrator Hansen noted the Council had asked that staff renegotiate the contract in view of the budget cuts. He said staff did meet with the forester with a new proposal. He said the new proposal reduces the amount of hours by roughly one -half, to 70 hours at $3,360. Areas cut include staff and Council communication, writing articles for the City newsletter, the forestry hotline, seminars and workshops. Mr. Hansen said the one area increased in the new proposal is for time dealing with issues related to the emerald ash borer threat. Motion by Councilmember Polehna, seconded by Councilmember Roush to adopt Resolution 2010 -45, approving Forestry Consultant Contract for 2010. Ayes: Councilmembers Gag, Polehna, Roush and Mayor Harycki Nays: None Absent: Councilmember Cook Possible approval of dock permit for St. Croix Boat & Packet Community Development Director Turnblad noted this item was tabled to allow the Downtown Parking Commission to review parking issues. He said the Parking Commission has reviewed the issue and does not believe the use creates an undue burden on the parking system, He stated that the Parking Commission believes the 2010 permit is supported by existing parking infrastructure. He noted the permit for 2010 is for the same number of boats has it has been in the past several years — 5 cruise boats and a service boat, with 3 cruise boats and service boat allowed permanent dockage on the northern of the two docks, 1 cruise boat allowed permanent dockage on the southern of the two Page 9 of 16 City Council Meeting March 2, 2010 docks, with 1 cruise boat permanently docked elsewhere and allowed at the municipal docks for loading /unloading and repairs for no more than 24 hours. Mr. Turnblad noted the DNR is not so concerned during winter, but is very critical during the summer time. He said the DNR permit relates to the number of boats only. Councilmember Gag asked whether the DNR permit specifies the names of the boats that can be permanently docked. Mr. Turnblad said the DNR is not that specific, the permit is issued for the number of cruise boats and does not specify style or size of boat; Mr. Turnblad said he verified that again with the DNR's regional hydrologist, Molly Shodeen. Councilmember Polehna asked about the number of transient slips that are available; Mr. Turnblad said, depending on the size of the boat, between 14 and 24 slips are available to the public. On a question by Councilmembers Gag and Polehna, Mr. Turnblad explained there are two permits associated with the St. Croix Boat & Packet operation — a master permit from the regulatory agencies, the DNR and Corps of Engineers, which specifies numbers, capacity of ships and navigation issues, and a special use permit from the City which regulates the adjourning property, the support area for the docks. As a part of that special use permit from the City, an annual dock permit is required as well. Mayor Harycki noted that this is the only one of the four marinas in the City that is required to obtain a dock permit from the City, although the other marinas are facing the same issues relating to parking, sewage discharge, etc. Mr. Turnblad said the difference is that none of the other marinas have a special use permit issued by the City. City Attorney Magnuson noted the other marinas preceded the Wild and Scenic Rivers Act and DNR regulation of the shoreline and are considered non - conforming, legal marinas. Mayor Harycki suggested this might be a matter of two businesses in a dispute over matters the City cannot regulate. Mayor Harycki also noted that an issue of conflict of interest has been raised in this matter and that St. Croix Boat & Packet is one of his clients, representing '/ of 1% of his company's total revenue, and he has received legal opinion that there is no conflict of interest involved. Mayor Harycki pointed out that the title "city docks" implies that the City owns the docks, when in fact, the owner of St. Croix Boat & Packet owns the docks and the docks are attached to his private property; he also noted that prior to purchase by St. Croix Boat & Packet, the docks were actually closer to the Dock Cafe. Mayor Harycki pointed out the City's authority to regulate ends at the river bank. Page 10 of 16 City Council Meeting March 2, 2010 City Attorney Magnuson addressed the issue of conflict of interest, noting that the City Charter provides for extra strict rules in this matter. He stated that thee Charter, authorizes the City Attorney to give an advisory opinion so that a mayor or council person can be assured they will not run afoul of some city rule and get themselves unwittingly into some kind of trouble. He said he reviewed the percentage of work/revenue from all of St. Croix Boat & Packet's related entities to the revenue of the Mayor's other enterprises and, using state Supreme Court cases as a guide, determined that the interest was not sufficient or direct enough to constitute a conflict of interest. He said he has provided that advisory opinion for several years and has provided that opinion again based on the most current financial information. Mr. Magnuson noted the financial information is not public unless authorized by the party involved, and the Mayor has consented and requested that the information be made public and provided to the party objecting to his involvement as well as to the press. City Attorney Magnuson also addressed issues raised in a letter to the Council dated March 2, 2010, which states that the DNR permit is a condition precedent to the City issuing a dock permit. Mr. Magnuson said that is not correct, what the permit says is the company must maintain and abide by the rules of the Corps and DNR. He stated the DNR permit is in effect now, and a representative from the DNR has indicated that agency will not review this until June. He also noted the DNR has indicated it has no authority to regulate the size, style and color of the boats, which appears to be the real issue, and as the City has no authority over the waterway, it would be unreasonable to think the City could regulate such matters. Mr. Magnuson also addressed the letter's implication that the City could be liable for a taking of property by issuing the permit as well as a potential conflict due to the Mayor and Councilmember Roush having some business partnership. Mayor Harycki noted this item was not published or noticed as a public hearing, and asked whether the Council wished to allow brief statements from two City Attorneys in attendance. Councilmember Gag noted in previous instances that decision has been left to the Mayor or Vice Mayor in charge of the meeting. Mayor Harycki stated he believes the City is being drawn into a private dispute between two businesses. Mayor Harycki asked Mr. Turnblad to update the Council on a possible option of extending the dock to the south and mooring the boat in question at that new location. Mr. Turnblad said staff had talked with Molly Shodeen from the DNR who indicated the DNR could consider a revised alignment for the dock(s) and possibly a larger dock as the DNR considers the "water footprint" in making such a decision. Page 11 of 16 City Council Meeting March 2, 2010 Councilmember Roush said the owner of St. Croix Boat & Packet has indicated he is willing to work with the other party involved; the question is the money involved and who would pay for moving the dock. Mayor Harycki said he would not like to open the discussion for comment as St. Croix Boat & Packet was not represented at the meeting. Mr. Nettles said he would like to respond to some of the Mr. Magnuson's comments. Councilmember Polehna noted the Council is considering a dock permit, which has nothing to do with the other issues being raised — the boats, the size of the boats and where they go. Councilmember Gag said he thought the Council should be voting on the matter in front of it, not trying to negotiate or mediate between two private parties about moving docks; and that the permit the Council is being asked to approve is similar to what he has seen for 10 years serving on the Planning Commission and now the Council. Councilmember Polehna said it is not the Council's business to regulate a business, but to make sure the City's interests are being met. Mr. Nettles asked to address the Council or that the issue be tabled. Motion by Councilmember Gag, seconded by Councilmember Polehna to adopt Resolution 2010 -46, approving the 2010 Dock Permit for St. Croix Boat & Packet, Councilmember stated he has reviewed similar language for 10 years and that the main difference is a boat that the City cannot regulate. Councilmember Polehna agreed that there is nothing the City can do to move the boat. Ayes: Councilmembers Gag, Polehna, Roush and Mayor Harycki Nays: None Absent: Councilmember Cook Possible approval of plans and specifications and ordering advertisement for bids for the 2010 Street Improvement Project 2010 -02 Public Works Director Sanders said plans have been completed for the 2010 street improvement project. He said if plans are approved and authorization given to go to bids, bids would be opened the first or second week in April. Motion by Councilmember Polehna, seconded by Councilmember Roush to adopt Resolution 2010 -47, approving plans and specifications and ordering advertisement for bids for the 2010 Street Improvement Project, 2010 -02. Page 12 of 16 City Council Meeting March 2, 2010 Ayes: Councilmember Gag, Polehna, Roush and Mayor Harycki Nays: None Absent: Councilmember Cook Possible second reading of Ordinance 1014, an ordinance amending the City Code by changing Commission Regulations City Attorney Magnuson said this change would bring consistency to all of the commissions, making all of the Councilmembers who serve on the commissions ex- officio, non - voting members. Motion by Councilmember Gag, seconded by Councilmember Roush to adopt Ordinance 1014, an ordinance amending the City Code by changing Commission Regulations. Ayes: Councilmembers Gag, Polehna, Roush and Mayor Harycki Nays: None Absent: Councilmember Cook Possible second reading of Ordinance 1015, an ordinance amending the Charter of the City of Stillwater City Attorney Magnuson recommended that this be tabled, as it requires a 5 -0 vote to amend the Charter. Motion by Councilmember Roush, seconded by Councilmember Polehna, moved to table this item. All in favor. NEW BUSINESS Possible approve of transfer of tobacco license from Stillwater Tobacco, Inc. to Tobacco Market, Inc. City Administrator Hansen said this is a fairly normal and straightforward transfer of an existing tobacco license. City Administrator Hansen noted approval should be conditioned to require review and approval by Police, Fire, Building Inspection and Finance departments. Motion by Councilmember Roush, seconded by Councilmember Polehna to adopt Resolution 2010 -48, approving transfer of tobacco license from Stillwater Tobacco, Inc. to Tobacco Market, Inc. Ayes: Councilmembers Gag, Polehna, Roush and Mayor Harycki Nays: None Absent: Councilmember Cook Page 13 of 16 City Council Meeting Budget Cuts March 2, 2010 City Administrator Hansen stated the Governor's proposed cuts for Stillwater amount to a total of $558,290 -- $183,297 in remaining Local Government Aid and $379,993 in the total market value homestead credit reimbursement. Mr. Hansen said the budget included new hire savings in administration and police departments, as well as unfilled position in both the police and fire departments, which he is now recommending be taken out of the budget; those savings total $168,234, he stated. He noted that when the state decides not to reimburse the City for market value homestead credit, it takes the money not only from the general fund levy, but the debt service levy as well, a total of $125,547. He said the engineering department came up with an additional $5,200 in cuts; a $39,950 reduction in the parks budget by eliminating all part-time positions; and $89,350 cuts in the street budget including eliminating all part-time positions. The total additional budget cuts amount to $428,281. Mr. Hansen said staff also identified some additional revenue, $24,000 in MSA funds for maintenance and $3,500 in park fees. The total cuts and additional revenue total $455,781. He said he has asked the library to look at additional budget cuts as the library amounts to 11 % of the City's operating budget; or about $60,000 +. He said he would come back at the next meeting with options for the remaining $50,000. He stated that when all is complete, he will present the Council with a balanced budget. Mr. Hansen said looking forward, he will be looking at a reorganization of departments in the next two or three years. Mayor Harycki asked whether the potential expenditure of $30,000 for Jersey barriers should be added to the budget. Mr. Hansen said the City has never budgeted for flooding as it would inflate the budget and taxes in a year when those funds might not be needed and that reserve funds are available should the barriers is needed and the City not be reimbursed by FEMA. Councilmember Gag said if the City's priorities are to protect and serve (police and fire) and streets, it would be helpful for him to see the percentage /proportion of cuts and positions eliminated from those department over the past several years. Mr. Hansen said he would be happy to provide that information; he noted that overall the City used to have 93 employees and is now down to 80, a 17% reduction in the workforce, and with the exception of the police department, all part- time /seasonal positions have been eliminated. Mr. Hansen noted that 80% of the police and fire department budgets goes to staffing, while streets and parks department budgets include a lot of materials and supplies, a little more latitude for making cuts. He noted that no department has been spared from cuts and reductions. Councilmember Roush asked about the impact of these cuts on level of service. Mr. Hansen said without part -time staff, it may take longer to get things done and there will be impacts — it's not business as usual. He also said he believes next Page 14 of 16 City Council Meeting March 2, 2010 year will be worse than this year. It was consensus to bring this back at the next meeting to provide the information requested by Councilmember Gag and some more specifics regarding the other cuts. Seasonal Hiring — Community Service Officers) Parking Attendants Police Chief Gannaway said in the past, the City has hired two Community Service Officers (CSOs) and one seasonal parking enforcement officer and a number of parking attendants. One position was cut last year. The request this year is for one seasonal CSO, one seasonal parking enforcement officer and 4 or 5 parking attendants. He noted his department is two officers short and the seasonal officers provide a "great bang for the buck." He said the total cost is about $20,000 for all the positions. He stated that the CSO officer comes out of the police department budget, the remainder are funded through the Parking Enterprise Fund. City Administrator Hansen said he supported the request. Motion by Councilmember Roush, seconded by Councilmember Polehna to approve the hiring as requested. All in favor. Cayuga Discussion Mayor Harycki noted the Council's concern about the Cayuga has been the possibility of the boat sinking and the desire to get the boat out of the water. He said Mr. Anderson (St. Croix Boat & Packet) has suggested that the City let Mother Nature do the lifting of the boat, pull it ashore as the St. Croix water levels rise; however, it was noted there is a very short timeframe in which to get that accomplished. Mayor Harycki said Mr. Anderson has indicated that a local business is interested in cutting the boat up for scrap. City Administrator Hansen said staff has been discussing the possibility of getting the boat up during the spring high water levels as well; the only thing that might prevent that from being done is if there is flooding, which would be the priority for staff efforts. Mr. Hansen said he had received two new proposals regarding the Cayuga just the afternoon of the Council meeting, and he will bring those proposals to the Council after he has had an opportunity to more fully look at them. Mayor Harycki asked whether any approvals might be required from the DNR to get the Cayuga out as proposed; Mr. Hansen said he didn't think any permits would be required. Mr. Hansen said staff would pursue the possibility if the Council approves of the idea; it was consensus to pursue the option. STAFF REPORTS (continued) Page 15 of 16 City Council Meeting March 2, 2010 Public Works Director Sanders said due to the potential for flooding of the St. Croix River, people along the river are encouraged to purchase flood insurance. He stated it is a 30 -day process to get a new policy. Mayor Harycki noted flood maps have been updated. Councilmember Polehna asked if property owners have been notified of the FEMA changes, staff indicated that property owners affected by the revised maps were notified of the changes. ADJOURNMENT Motion by Councilmember Polehna, seconded by Councilmember Roush to adjourn at 8:50 p.m. All in favor. ATTEST: A Larry D. FWnsen, Acting City Clerk Resolution 2010 -43, directing payments of bills Resolution 2010 -44, approval of the premises permit for gambling at the Harbor Bar Resolution 2010 -45, approving Forestry Consultant Contract for 2010 Resolution 2010 -46, approving the 2010 Dock Permit for St. Croix Boat & Packet Resolution 2010 -47, approving plans and specifications and ordering advertisement for bids for the 2010 Street Improvement Project, 2010 -02 Resolution 2010 -48, approving transfer of tobacco license from Stillwater Tobacco, Inc. to Tobacco Market, Inc Ordinance 1014, an ordinance amending the City Code by changing Commission Regulations. Page 16 of 16