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HomeMy WebLinkAbout2010-05-14 CC MIN Special Meeting'filKvater TYF EIYTM ►t✓10E Yf YI.Y EIFtR MINUTES City of Stillwater Special City Council Meeting May 14, 2010 Mayor Harycki called the meeting to order. He noted the meeting had been published and is an open meeting for the purpose of a Council retreat to set priorities for the coming year. Present: Councilmembers Cook, Gag, Polehna (9:30), Roush and Mayor Harycki Staff: Public Works Director Sanders (until 11 a.m.) Assistant Public Works Superintendent Moore (until 11 a.m.) City Administrator Hansen Flood control Public Works Director Sanders provided a brief history of the flood wall project. Part of the discussion focused on the reasons for the increase in the estimated cost of phase 3 of the project, from an initial estimate of $4+ million to nearly $12 million. Mr. Sanders enumerated some of the new components of the project that are now required by Corps engineering standards. Mr. Sanders explained that Stage 3 involves construction of 1,000 feet of levee wall along Lowell Park. The wall would be constructed to the 50 -year flood height, or an elevation of 690.5; he noted that if the wall is constructed, the City will still have to do some temporary control measures for floods greater that a 50 -year event. There was discussion of the frequency of 50 -year events. Mr. Sanders provided a graphic of the location of the wall, along with the location of a possible amphitheater and trails /walkways. He also described the elevations of the wall and the parking lots. He reviewed the status of the project as of the present time: estimated cost is $11.5 million, with removal of contaminated soils estimated at $1.2 million. He noted that removal of the contaminated soils will be a City cost and the soils must be removed before the Corps will start its project. On a question by Councilmember Roush, Mr. Sanders said the soil contaminants are the result of the railroad operations and that he wasn't sure if there is any liability on the part of the railroad. City Administrator Hansen said he could check into the issue of railroad liability. In looking at the overall project, Mr. Sanders said the federal share of the costs would be about $8.5 million, with the City share of $2.8 million. Mr. Sanders noted that the City wants to get credit for land taken for the project, which should cover about 20% of the cost. It was noted the City has received a state DNR matching grant of $400,000, which would reduce its share. No matter what Special City Council Meeting May 14, 2010 scenario, Mr. Sanders said the City must make a minimum cash payment of 5% of the project cost, or $575,000. Mayor Harycki said one option might be to go back to the state with a request for funding to do something on a smaller scale. Mr. Sanders said currently, the City has $2.5 million in federal funds and $200,000 that the City contributed previously and the $400,000 matching grant from the DNR, or a total of $3.3 million, which is not enough to construct the project. Mayor Harycki asked if the $200,000 the City contributed previously is in reserve; City Administrator Hansen said that money is in a bank account controlled by the Corps of Engineers. Mr. Sanders said staff met with the Corps a short time ago to look at options and one option is to build the wall in stages and that the Corps would prefer to begin at the ends of the project area. At this point, Mr. Sanders said the City can only do a project with the Corps that costs no more than $2.5 million, the amount of federal funding. He stated that one option is a project from Nelson to Chestnut at a project cost of $2.5 million and federal share of $1.87; the non - federal share would be $625,000, but with credit would be $125,000 which the City already has contributed. Mr. Sanders suggested that the City could use the DNR matching funds for the land cleanup. He noted that power poles would have to be moved; that cost is estimated at about $200,000. Soil mitigation in that area is estimated at $500,000 4600,000. Councilmember Polehna talked about the possibility of getting some state Legacy money to get the trail up to the needed elevation; he noted there is also a county Legacy program. Mr. Hansen spoke to the cost of federal dollars, suggesting that federal money is too expensive — it's cheaper for the City to do its own project. Mr. Sanders said a second option would be to complete the storm sewer the entire length of the project, grade Lowell Park and begin the amphitheater, which the Corps has indicated it would be willing to do. He stated that currently the parking lots drain toward the river; the elevation of the parking lots would be raised so they would drain to the storm sewer. He said soil mitigation would be done in the areas of the storm sewer only. He said this option would better prepare the City for flood control due to the storm sewers, drainage and the increased elevation of the parking lots and that this project option could be completed with available funds. When asked which option he thought was better for the City, Mr. Sanders said he believes this option is better because of the advantage for flood fighting along with the amenities of grading Lowell Park and the amphitheater. On a question by Councilmember Cook, Mr. Sanders said it was staff's recommendation to do Option 1 if the decision is made to pursue the project in stages. It also was noted Option 2 has the advantage of parking lot improvements. In discussion, Mr. Sanders said if the City had completed Option 2, it would not have had to do any temporary flood control this year at a cost of about $110,000. Page 2 of 12 Special City Council Meeting May 14, 2010 Councilmember Roush asked how much elevation would be gained in Option 2; Mr. Sanders said about 1' to 1.5' in most spots, which Councilmember Roush noted is about 20 -25% of the elevation of the flood wall. Mr. Hansen said he agreed with Mr. Sanders' recommendation. Regarding a possible start date for a project, Mr. Sanders said construction would begin next year at the earliest if the City gave the go -ahead immediately. Mayor Harycki suggested the possibility of beginning the soils mitigation and still pursing the possible liability on the part of the railroad; Mr. Hansen said he would look into that. During discussion about costs, it was noted there is funding set aside for Lowell Park improvements which could be utilized. Mayor Harycki spoke in favor of Option 2. Regarding temporary flood protection, Mr. Sanders said he looked at 5 different products; he described how the various products work and the cost for the products. Mayor Harycki suggested looking at these products again after completion of the Option 2 flood control plan. There was discussion of the soil mitigation. Mr. Sanders said the consultant has indicated that depending on the levels of the contaminants, it might not be necessary to remove the soil off -site; it can be treated on site by spreading. Councilmember Polehna wondered how the contamination got so bad when it was not considered a serious problem a few years ago; Mr. Sanders explained that the Corps standards are different than the PCA's standards. Councilmember Cook suggested perhaps having a mini presentation at a regular Council meeting before voting on this as this is such a major project. Councilmember Gag asked about the process if approved at this meeting. Mr. Sanders said he would first want to find out what has to be done with the soils. He said the Corps could be notified the City wants to proceed with the project and begin work on the plans and specifications while the City works on the soil mitigation, but in any case, the City has to have the soils mitigated before the Corps will start any work. In discussion it was noted that the project may not even be feasible depending on the soils, and the project could be the subject of an informational meeting at a later date if things proceed. Motion to direct staff to pursue option 2 passed unanimously. Motion by Mayor Harycki, seconded by Councilmember Roush to direct staff to pursue Option 2 of the flood control plan as presented. All in favor. Parks Councilmember Polehna suggested setting a policy regarding mowing, referring to the small open space areas that the City owns. Mayor Harycki said he asked that this be an agenda item to discuss what improvements can be made to Lowell Park as well as maintenance issues. Page 3 of 12 Special City Council Meeting May 14, 2010 Tim Moore, Assistant Public Works Superintendent, gave a presentation highlighting the current conditions of Lowell Park and possible park improvements. He said staff has been working for the 1.5 years at improving the turf in the park and that there are some major issues related to drainage. He said previous plans called for the area from Myrtle to Nelson to be more of a traditional, formal park, with the area from Myrtle to Mulberry more of an open, event area park. Things that can be done now either in -house or with local contractors include drainage improvements, along with installation of an irrigation system and replacement of the drinking fountain, upgrading the bathrooms, installing some landscaping and bituminous trail. Some future improvements that can be planned for in conjunction with a possible levee project include construction of an amphitheater, grading, resurfacing and realigning the parking lots, and constructing the Commercial Street plaza. He stated that there is approximately $375,000 in funds for a Commercial Street plaza, along with approximately $535,000 for Lowell Park improvements. There was discussion about the plaza concept. Mr. Moore suggested the plaza is a more inviting way to bring people down to the park. Councilmember Gag said it also attracts more people to the north end and to the parking lot; he suggested talking with the gas station owner to see if there might be a way to add a restroom facility onto the station. City Administrator Hansen noted the plaza area may have to be shifted due to an issue with land ownership, as the existing plans show the plaza located on Water Street Inn property and negotiations related to a possible land swap have not been successful. Councilmember Cook asked if some improvements could be done at this time or whether the levee project would be so disruptive any improvement would be destroyed. Mr. Sanders noted that on the south end, there would be no grading; work would be confined to the parking lots. North of Myrtle, Mr. Sanders said the work would be more disruptive. He said of the improvements Mr. Moore talked about, installation of the irrigation system would disrupt portions of the park. Councilmember Cook said she would love to see a formal park, the way Lowell Park used to look with a large fountain, planting and seating areas. She felt that this was a big ticket item but one that would generate a lot of public interest for volunteer initiatives. Councilmember Gag said he thought all the local service groups would come together to support a visible project. Mr. Sanders said the most important thing before doing any improvements is the grading and installation of the irrigation system. City Administrator Hansen pointed out that the north and south portions of the park are very different — the south seldom floods, while the north is designed to be flooded so whatever improvements are put in, whether shrubbery or trees, will have to be able to withstand flooding even once the levee project is completed. Page 4 of 12 Special City Council Meeting May 14, 2010 Councilmember Cook said she thought it would be important to put together a package to get people's attention and generate interest in participation; it was noted those plans are already in place. Councilmember Cook reiterated that she would like to do something to the park now. Mr. Moore spoke to the importance of installing the irrigation system, noting that the existing water system in the southern portion of the park is very old and labor intensive. It was consensus to focus initial efforts on south Lowell Park. Mayor Harycki suggested that perhaps Mr. Moore start by going to the Park Board indicating the direction to focus on south Lowell Park and what can be done with the $375,000 in available funding; Mr. Moore said that process has already been started. Mr. Moore pointed out that there are no costs associated with the plans in place. There was discussion as to whether installation of the irrigation system in the south portion of the park should be done in conjunction with the parking lot improvements due to the potential need for grading to change the elevation of the lots. Councilmember Cook suggested that simultaneous with the infrastructure work, plans should be put out to the public to generate interest for possible fundraising for the future improvements. Councilmember Gag said it would be important to emphasize that these are plans that have been in the works for many years and not frivolous spending, with money put aside for the improvements. Mr. Moore asked the Council how it wished the $535,000 for park improvements allocated — whether it should be split between north and south or some funds reserved for irrigation of the north end. Councilmember Polehna suggested having staff come back with a recommendation; he thought the only direction should be to "do it right." Mayor Harycki suggested waiting on the plaza concept until Community Development Director Turnblad comes back with revised plans. Councilmember Cook asked if staff could price out some items, such as fountains and shrubbery for the purpose of fundraising. Regarding the issue of maintenance /mowing, Mr. Moore stated he had worked with a member of the University Extension Service to develop a turf maintenance program to begin to look at this issue. He said the result was a document that talks about maintaining turf in the parks and public properties. He said the document divides the parks into three specific maintenance categories whereby the most used parks receive the highest level of maintenance. He said staff started working with that plan this year. In addition, they looked at what is currently mowed and frequency of mowing and are working on a mowing plan as well. He said he views these as maintenance plans, rather than policy. Councilmember Polehna suggested that the Council needs to give its support to the plans; he suggested that Mr. Moore come back with a plan that addresses maintenance of ice rinks, ball fields, etc., as well as the mowing and the frequency of mowing. Page 5 of 12 Special City Council Meeting May 14, 2010 Councilmember Roush reiterated that the issue with mowing is frequency of mowing, not discontinuing mowing of certain areas altogether. Councilmember Polehna suggested that not all areas need to be mowed and should be left in a natural state. Mayor Harycki said he had received a call regarding boat mooring downtown and the request to make it more public friendly; he also referred to previous discussions regarding a public boat launch. City Administrator Hansen said he thought there should be a public boat launch but that he would like to see it owned by the DNR, rather than the City, so the DNR is responsible for maintenance, operation, etc. Mr. Hansen said a boat launch is another amenity the City cannot afford to maintain, but suggested that the City ought to work with the DNR and secure land, if necessary, for a launch. Councilmember Roush suggested that the City not give the land outright, but perhaps lease the property in the event that the other agency ceases to operate the launch. Mayor Harycki suggested that an outside vendor might be interested in operating the launch for the City. Councilmember Polehna suggested that an honor system could also work. There was discussion of possible sites for a launch, with the Cayuga site the preferred site. It was decided to refer this issue to the Parks Board. There was discussion of the public docks; Mr. Hansen noted the City does not own the dock/slips, but Mr. Anderson is required to provide a certain number of slips to the public. It was suggested that the availability of the public docking ought to be better advertised /signed. Mayor Harycki suggested the issue of signage for the public docks be referred to the Parks Board suggested staff be directed to look at immediate, low cost plans for a public boat launch. Review of last year's agenda Mayor Harycki said in looking at last year's agenda, the Council has accomplished, or is in the process of accomplishing, about 90% of the priorities /tasks. He briefly reviewed the various items. There was discussion of possible armory sites. Regarding City bidding practices, Mayor Harycki asked whether the Chamber had been provided a list of bid items and asked that if that has not been done, the list be sent to the Chamber and perhaps the IBA. Mr. Hansen spoke of savings realized in some of the new bidding. Regarding code enforcement/rental properties, Mr. Hansen noted a packet had been sent to the property owner in question on Sherburne Street and that owner has 90 days to take care of numerous items. He said another letter will be sent to a property owner on Third Street, with a third property to be handled according to state law. The meeting was recessed at 11:50 a.m. Page 6 of 12 Special City Council Meeting May 14, 2010 Mayor Harycki called the recessed meeting to order at 1:10 p.m. Mayor Harycki noted that Councilmember Roush was absent. Watershed District relations Mayor Harycki noted that the City contributes $35,000 a year to the Middle St. Croix Watershed Management Organization. In addition to the difficult budget times, he pointed out that there is a double taxation involved. He noted that as a resident of the Brown's Creek Watershed District, he pays a separate tax to that entity and as a resident of the City pays a tax to the Middle St. Croix Watershed Management Organization, whereas a resident of the City in the Middle St. Croix Watershed doesn't pay a tax to the Brown's Creek District. Mayor Harycki wondered whether there might not be some value to pushing for the dissolution of the Middle St. Croix Organization and splitting it off into the other adjacent watershed districts. City Administrator Hansen said staff has contacted several Middle St. Croix members and they are not interested in letting the City out of the organization but it appears there are other ways to accomplish that which staff could investigate. Mayor Harycki also noted that each of the watershed organizations has their own rules which they want the City to adopt and follow which complicates matters for engineering staff. Councilmember Polehna pointed out that there is no one watching out for the City's interest on the Brown's Creek board, whereas an elected City official is a member of the Middle St. Croix to ensure the City's interests are heard. Mayor Harycki agreed there is a risk that in creating a large watershed district, the City's interests could get pushed aside. In discussion, it was noted that the Middle St. Croix doesn't have taxing authority and projects are grant- driven, so, for example, if a project is proposed for Lake McKusick, the City would either have to fund the project or grants would have to be received. It was agreed to invite Middle St. Croix representatives to the joint meeting with Brown's Creek on June 2 and ask the two watersheds to provide information on recent projects that have impacted Stillwater, planned future projects, and the percentage of funds being spent in Stillwater and being spent outside of Stillwater. Work plan, department objectives Mayor Harycki said the work plan was initiated so as not to forget to follow up on scheduling a meeting or other action. City Administrator Hansen said he has found that the work plan helps keep things on track. Councilmember Cook asked about the energy audit that was supposed to have been scheduled; Mr. Hansen said he had contacted the person again and he is still planning to do the audit as promised. It was agreed to add energy audit to the July work plan, with the update on the boat launch the end of June. It was agreed to add a flood wall update and Lowell Park update to monthly staff reports to the Council. Page 7 of 12 Special City Council Meeting May 14, 2010 Mr. Hansen noted that last year the Council made the decision to shift the emphasis of Community Development Department to economic development once the Comprehensive Plan update is finalized. Mr. Hansen said Community Development Director Turnblad will go through a training process in economic development. Mr. Hansen noted that the job stimulus law changed some of the TIF laws to stimulate the economy and will allow the City to make economic development loans, a revolving loan fund. Mr. Hansen said the City has several TIF districts that have been accumulating funds that will have to be given back, redistributed to the various taxing districts, if not used. Mr. Hansen said he has been told that if the funds in question are expended before December 31, 2011, the funds are not considered TIF money, but if not expended before that time ,revert back to TIF money status. Mr. Hansen said he would propose to get the loan fund set up to see if there is any interest and that the money could be used for any activity that would generate jobs or commerce. In discussion, Mr. Hansen said the loan money would not have to be spent in a specific TIF district. There was discussion about the amount of City control; Mr. Hansen said certain criteria would be established and the Council would have to approve any loans. There was discussion of possible uses and possible criteria. Mr. Hansen said he would investigate this further and report back at the first or second meeting in June with a better explanation of how this loan program would work. Regarding department objectives, Mayor Harycki said economic development should be a big focus for planning. Councilmember Polehna suggested performance measures should be developed by the various departments; Mayor Harycki suggested that is an administrative function /priority. Councilmember Gag agreed there needs to be performance measuring sticks. Councilmember Cook agreed that the City needs to move in that direction. It was suggested that Mr. Hansen talk with the Washington County Administrator to get some ideas for the department performances measures /benchmarks. Mayor Harycki noted that Lowell Park and maintenance plan would be a priority for parks department. Regarding administration, it was noted that performance standards and economic development would be a focus for the upcoming year. Regarding fire and police, Councilmember Cook said she would like the department(s) to stay on top of code enforcement. Regarding engineering department, Councilmember Gag spoke of the good job Mr. Kraftson does with the street projects and keeping the public informed. Mr. Hansen pointed out the city is changing with fewer large developments that will take place in the future and fewer street projects other than the annual street improvement project, so engineering department personnel likely will have to be reduced beginning in 2011. Page 8 of 12 Special City Council Meeting May 14, 2010 Regarding possible restructuring, there was discussion of police /fire /ambulance responses to emergency calls; Councilmember Polehna talked about the need for sharing of services and equipment with neighboring communities in the future. Councilmember Gag asked Mr. Hansen where the City stands regarding the budget. Mr. Hansen said he believes the City will be alright for 2010, but that he will have a better idea about 2011 in the very near future. He expects local government aid will be a thing of the past and is assuming the state will take the HACA funds again. Mr. Hansen said the following year, once past the election, the state might be willing to look at the market value homestead credit and have the fortitude to discontinue a program it can't afford. Mr. Hansen said he expects the decline in home values to show up at about 15 %. Regarding the library, Councilmember Gag asked if the Council can't request a budget report and relay its expectations regarding reductions; Mr. Hansen said he had informed the library of the expectation for budget reductions of about $50,000. Councilmembers asked that a library representative be asked to attend an upcoming council meeting with an update. Regarding finance, Mayor Harycki said he would like to see regular controller reports to the Council. Volunteer initiatives Mayor Harycki said the City has had the opportunity to save money through volunteer service. He said he would like to have department heads put together a list of volunteer opportunities, big and small. There was discussion of various opportunities. Mayor Harycki suggested that the amount of money saved through volunteer service might be a valuable benchmark to include. Mayor Harycki said he would like to see a link on the web page and a contact person. Councilmember Polehna talked about the potential benefit of establishing a memorial program. Budge Mayor Harycki noted that the City is budgeting on the assumption of 0% salary increases and suggested that if a union demands 3 %, for example, he would be willing to step down a position to balance that. On a question by Councilmember Cook, Mr. Hansen said he looks at the entire City when doing the budget, but also at individual departments as some departments are able to give more than others. Mr. Hansen said he looks at the impact on citizens; he said he believes the City is at about the limits when citizens will not feel the difference in the budget situation. Mr. Hansen noted the City is down 17% in FTEs. Mayor Harycki suggested that while volunteers cannot fill that gap, they might help make the impact less noticeable by adopting a flower bed or painting the gazebo, etc. Page 9 of 12 Special City Council Meeting May 14, 2010 Councilmember Cook wondered if there isn't something that can be done about the Metropolitan Council and its costly requirements; Mr. Hansen noted the Met Council raised its sewer rates, the City didn't raise its rates and has been absorbing the difference for the last year, and he suggested that Met Council would be raising its rates again due to the lack of revenue from new connections. There was discussion about the cost of storm water projects and cleanup efforts, with Mr. Hansen noting that cities contribute about 10% of the problem and are expected to fund 90% of the cleanup efforts. He stated the City expends about $200,000 a year on storm water issues, without making a dent in the problem. Mayor Harycki pointed out the budget going forward to 2011 isn't a zero increase; it's a negative amount by $200,000 - $300,000. There was discussion of emergency medical calls and how those calls are handled; Mayor Harycki suggested taking a look at how all these calls are being deployed. Mr. Hansen said it was his understanding that police no longer respond to all the medical calls. Mr. Hansen noted the City currently uses a 24 -7 staffing model and that he isn't sure the City can afford to continue to utilize that model 5 years from now. He said those are things that will have to be on the table in the not too distant future. There was discussion about combining services and consolidation. Mayor Harycki suggested the possibility of changing the staffing model to require the assistant fire and police chiefs to pull regular shift, rather than do strictly administrative work. There was discussion of going to a public safety department or volunteer fire department. On a question by Councilmember Polehna, Mr. Hansen said he did not have any real good ideas for cost containment in moving forward with the budget process that haven't already been done. He stated that staff is continually looking at new contracts and how to consolidate and has been pretty successful at doing that. Mr. Hansen referred to ideas such as the Dairy Queen at the Recreation Center at looking outside of the box; there was discussion of some of the specifics of the proposal. Councilmember Cook said she had asked that cost containment be on the agenda due to her discomfort with some of the bills on a regular basis. She said she knew there have been some practices put in place since the last retreat session that have been effective but wondered if more can be done; she wondered if all departments are aggressive at looking at grants and other funding sources. Lumberjack Days boat mooring- Mayor Harycki suggested talking with Mr. Anderson about getting better signage and perhaps setting a temporary time limit, three -hour limit, for example, on the slips; he suggested that a time limit might be good for the entire summer season. Councilmember Cook talked about a recent problem with exhaust from one of Mr. Anderson's boats, which she said is impacting the community at a whole. Mayor Harycki also suggested asking Mr. Anderson about the possibility of a Page 10 of 12 Special City Council Meeting May 14, 2010 temporary dock during the LJD. Mr. Hansen suggested getting some input from the police department before moving forward. Councilmember Polehna stated members of the Red Bull Division will be Lumberjack Days parade grand marshals and that the Yellow Ribbons Committee would like to do something special for those returning veterans; he inquired about providing free admission to the Chicago concert as the City's contribution. No action was taken on that suggestion. Councilmember Polehna asked about the status of the Veterans' Memorial issues; Mr. Hansen said a representative had been before the Heritage Preservation Commission with a request to place a plaque at the site and the HPC declined to approve the suggested verbiage. Mr. Hansen said the person went ahead and purchased the plaque anyway and likely will go before the Council with the request to install it; Mr. Hansen suggested the issue is the result of this person's attempt to take over the parking lot and eliminate the farmers' market use. There was a question about the maintenance contract; Mr. Hansen said there is still time left on the contract with the Veterans' Memorial Association but that he would not recommend that it be renewed as the Association is essentially one person at this time. Mr. Hansen said as far as he knows the maintenance duties are being fulfilled; but if a maintenance issue does arise, he would recommend that the contract be voided. Armory Councilmember Polehna talked of some recent developments, with the Guard indicating that it will be receiving $12 million in 2013 and wants to put an Armory in Stillwater. The Colonel he talked with indicated that the 20 acres required doesn't have to be contiguous and can be mixed with school or other uses. Councilmember Polehna brought up the site off Myrtle Street recently proposed for a senior living complex, a project that appears will not be proceeding. Mr. Hansen said he would set up a meeting with the Guard representatives. Councilmember Polehna said he was looking at this in conjunction with the community center proposal and his effort to get all the area communities involved and participating. Other items Councilmember Cook said she thought it would be good to have the traffic committee report to the Council on a regular basis. Councilmember Polehna suggested it would be good to have two retreat sessions a year. Motion by Councilmember Polehna, seconded by Councilmember o�to adjourn at 3:51 p.m. All in favor. Ken I� cki, Mayor Page 11 of 12 Special City Council Meeting ATTEST: 4 ., q"J Larry D. Qnsen, City Administrator May 14, 2010 Page 12 of 12