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HomeMy WebLinkAbout2010-09-07 CC MIN"illwater 11E EIETMFIACE !f ■IEA EIEIA CITY COUNCIL MEETING September 7, 2010 REGULAR MEETING Mayor Harycki called the meeting to order at 4:30 p.m. Present: Councilmembers Cook, Gag, Polehna, Roush and Mayor Harycki 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 OTHER BUSINESS Lumberjack Days & Marathon Debriefing 4:30 P.M. Dave Eckberg, St. Croix Events, provided the Council with an overview of this year's marathon. He stated the event went very well, with participants from 41 states and five countries. He said the event reached the goal of filling all the local hotel rooms; the Chamber's economic impact study will reveal the amount of dollars spent. He said there were no particular medical issues and noted there were about 125 medical personnel on the course this year. On a question by Mayor Harycki, Mr. Eckberg stated there were slightly under 3,000 entries for the associated races, with slightly over 2,500 who actually ran. He talked about a new fitness /wellness event that took place this year. Chief Gannaway said the event went well; the only dramatic thing was that the course had to be closed due to temperature on the recommendation of the medical director. Chief Gannaway said that occurred so late in the race that it affected only a handful of runners. He stated that it was a good learning experience should future weather - related situations occur. On a question by Councilmember Cook, Mr. Eckberg said about 400 runners ran the marathon and that the total number of runners was up about 20% over the first year. City Council Meeting September 7, 2010 On a question by Councilmember Polehna, Mr. Eckberg said about 20 community groups assisted in the races; he talked briefly about issues related to the water stations. Mr. Eckberg stated the July 4 th fireworks had spectacular attendance. He talked briefly about the flyovers, cannon and the associated concerts. Mayor Harycki talked about the attendance of folks from neighboring communities that have discontinued fireworks displays. Mayor Harycki also talked about the good job the police did with traffic at the conclusion of the fireworks display. Chief Gannaway said it was a fairly busy night for the police department, primarily due to the size of the crowd. Chief Gannaway said the only issue that was drawn to his attention was the fact that there were some vendors occupying paid parking spots; he said that is something that will have to be addressed in the future. Councilmember Cook asked about the vendors present on the 4 th of July and whether that is part of the Lumberjack Days contract; Mr. Eckberg stated there have been vendors for about the last 10 years and this is the first year there have been any comments /complaints. City Administrator Hansen said he wasn't sure if the contract specifically addresses vendors, but it has been past practice — it is nothing new. Mr. Eckberg said if this is an issue, the vendor in question could be moved to the grass and out of the parking lot area. Regarding Lumberjack Days, Mr. Eckberg said there were no particular issues. He said they had a difficult time securing musical units for the parade this year due to the economy. He said he thought the Chicago concert was incredible and that the four days of the event went pretty well. Chief Gannaway said Saturday night, the crowd cleared out fast, with only a couple of minor incidents during the concert itself. The only issue that came up, he said, was the lack of a lane going down the middle for electrical cords and that provided emergency access. He stated that in the future there needs to be lane of access that is barricaded. Mr. Eckberg said he had recently visited several Chicago area outdoor concert venues and will be receiving information from them regarding protocols that they use for lawn concerts; he said the access issue is one that they will continue to look at and work on with Chiefs Glaser and Gannaway. Mayor Harycki asked about re- orienting the stage; Mr. Eckberg said they are continuing to look at that. Mayor Harycki said he received more comments about the parade and the presence of so many politicians; Mr. Eckberg talked about the Page 2 of 23 City Council Meeting September 7, 2010 circumstances this year regarding the musical units, along with the fact that this is an elections year with a lot of people running for judge. Mayor Harycki wondered if there could be a requirement for people marching in the parade to have live music; Mr. Eckberg said that is an option that could be considered and agreed that musical units are the heart and soul of a parade. Councilmember Cook asked Chief Gannaway to expound on his experiences with Lumberjack Days. Chief Gannaway stated there were some issues after the Saturday concert with the downtown bars; he said the level of activity was more than in recent years, but not unlike the activity experienced a number of years ago. Chief Gannaway said there was one potentially serious incident that is still being investigated. Mayor Harycki stated the Council has discussed some modification to the Lumberjack Days contract. Mr. Eckberg said they are willing to sit down and talk about issues. Councilmember Roush said there are a few things in the contract that residents have expressed concerns about, but said he thought those issues could be resolved. It was agreed to have Mayor Harycki, Councilmembers Cook and Roush, and City Administrator Hansen meet with Mr. Eckberg regarding possible modifications to the contract. Mayor Harycki noted the marathon contract currently is done on an annual basis; Mr. Eckberg said for marketing purposes, they would like to be advertising the marathon as early as October. It was agreed that Mayor Harycki and Councilmember Polehna would work on negotiating the marathon contract. Councilmember Polehna echoed Mayor Harycki's comments regarding the parade; he also suggested that next year, equipment trucks be parked away from the concert area so as not to interfere with the audience's views /listening. Mr. Eckberg suggested that if the stage area is re- oriented, the music quality will be much better. Councilmember Polehna expressed appreciation for the National Guard's assistance in traffic control. Mayor Harycki suggested the possibility of having a citizens committee involved in the parade planning; Mr. Eckberg said that he would welcome that. Page 3 of 23 City Council Meeting September 7, 2010 Downtown Parking Commission recommendation on fees for private use of public parking spaces Community Development Director Turnblad reviewed the Parking Commission's recommendations for a policy regarding private use of public parking spaces and fees for such use. He noted there are two proposed rates, one for peak season, May 1 through Nov. 1, and off - season rates. Peak season rates, as proposed, would be $15 day per space in lot 1, and $9 per day for all other city parking lots, as well as on- street parking, excluding Main Street. Off - season rates, as proposed, would be $3 per day per space, in all lots and on- street parking, for parking more than 3 hours. Mr. Turnblad also reviewed the proposed policy. In discussion, it was noted that the recommendation is not to allow any private use of parking spaces on Main Street. Mayor Harycki asked about the impact on events such as Brine's bocce tournament and Summer Tuesday's. Mr. Turnblad stated the fee for the bocce tournament, since it is an off - season event, would be about $75, while Sumer Tuesday's, since it is a contract event, would be determined by the contract negotiations. Chief Gannaway referred to some of the incidents that resulted in the policy /fees, incidents such as vendors using public spaces during the 4 th of July and a race that left a dumpster occupying two public spaces for a number of days after the event had concluded. Mayor Harycki clarified that this policy would apply to the downtown commercial district only and would not affect neighborhood events, such as National Night Out; Mr. Turnblad noted there is a designated downtown parking district, which this policy would apply to. Mayor Harycki asked whether the Chamber and IBA have reviewed the recommendations; Mr. Turnblad responded in the affirmative. Mr. Turnblad noted that the Parking Commission is recommending fees are charged for all lots, including those that are currently free, as those lots will be upgraded and if fees aren't charged there won't be money in the Parking Enterprise Fund to pay for the upgrades. Mayor Harycki asked how that would impact the Car Show; Mr. Turnblad pointed out that the Car Show is only held during the evening, so the fee would be $3, and he said if the number gets too high, sponsors may want to go to a contract. Mr. Turnblad said if the Council agrees with the proposal, it would put it in the form of a resolution and brought it back to Council. Page 4 of 23 City Council Meeting STAFF REPORTS September 7, 2010 Police Chief Gannaway said he met with both the Chamber and IBA regarding crime issues; he said it was an excellent meeting, with the focus on the importance of two -way communication. He said he thought a lot of excellent information was exchanged on both sides. Fire Chief Glaser updated the Council on a number of emergency response calls, including three potentially significant fires, assistance on a drowning at Big Marine, and a mutual -aid call to Mahtomedi. He noted that since the beginning of the year, there has been an estimated loss of $414,000 in the department's district, with the value of the property involved at over $2.6 million, resulting in $2.1 million in saved property from the department's response. Chief Glaser stated the Washington County Sheriff's Office's air boat is expected to be received about the end of October, with training to take place the end of September /early October. He noted that fire hydrant flushing will begin soon, and he reminded the community that Fire Prevention Week will take place October 4- 9. Community Development Director Turnblad stated work has begun on a solar panel ordinance. He said a draft ordinance would be presented to the Heritage Preservation Commission and Planning Commission for review before bringing an ordinance to the Council. He anticipates that it will be early winter before any draft is ready. Mayor Harycki asked about some drawings of Commercial Street; Mr. Turnblad said as part of the Comprehensive Plan, there was a connection, a pedestrian way, between the parking ramp and riverfront shown; he said that was a very conceptual plan, but in the past two months a local architect has volunteered to work on those ideas and sketches are now beyond concept to a preliminary design. Mr. Turnblad said he thought the preliminary design sketches would be ready to bring to the Council in the very near future. Councilmember Roush asked about the status of boat trailer parking. Mr. Turnblad stated the Parking Commission has not changed its position regarding not allowing boat trailer parking in City lots. Regarding the boat ramp, Mr. Turnblad said the two sources of funding that the City had thought would be available are, in fact, not available. Mayor Harycki suggested the possibility of doing something inexpensive to accommodate a ramp at the former Cayuga site. Councilmember Polehna asked about the possibility of the City getting back its parking easement rights now that the Maple Island project is not moving forward; City Attorney Magnuson said he has discussed that with the bank, but they are reluctant to give up the easement at this time. Public Works Director Sanders stated he met recently with the Corps of Engineers regarding the levee project; he said there is a new project manager Page 5 of 23 City Council Meeting September 7, 2010 and the Corps has a contract for a consultant, SEH, and they have started on the plans and specifications for the project. He said the anticipated timeline calls for construction to begin after 2011 Lumberjack Days, with completion in the fall of 2011. Mr. Sanders stated the DNR has informed him that the minimum bid price for the Jackson Wildlife Management Area property is $177,000 and the DNR wants to know whether the City is interested in purchasing the property. Mr. Sanders said there is about three acres that is not in the Brown's Creek wetlands buffer area. Councilmember Roush pointed out that a wild species of orchid has been identified in that area and wondered whether that would prohibit any development. Mr. Sanders stated the DNR has recommended that no development occur, but that is just a recommendation. Councilmember Polehna asked that the agreement giving the property to the DNR be examined, saying he thought that if that agency decided to get rid of the property, it would revert to the City. City Attorney Magnuson said he could look at the title, but said he thought the restrictive covenant on the property had expired according to state statute. Mayor Harycki asked if Mr. Sanders had communicated the asking price to Brown's Creek; Mr. Sanders said he thought Brown's Creek might be interested in participating in a partnership for the purchase. On a question by Mayor Harycki, Mr. Sanders said any trail in the Jackson property would be limited and not connected to any other system, due to slopes and other restrictions. Councilmember Cook asked about the status of a Brown's Creek trail connecting to the Gateway Trail to downtown Stillwater. City Administrator Hansen said he had received a call indicating that the DNR had reached a property option agreement with Mr. Paradeau, with a nine -month process for acquiring the property; he said the DNR is hopeful it can close on the property by the end of the year. Mr. Sanders stated he had met with the Minnesota Pollution Control Agency and that the agency is attempting to set up a network across the state to monitor groundwater for water quality. He said the MPCA is interested in putting in three wells in the City; he said the wells would be monitored annually for water quality. He said there would be no cost to the City. Mr. Sanders provided information on two Consent Agenda Items, including the Flood Hazard Mitigation grant agreement, which is matching -grant money the City received from the state several years ago for the levee project, and the quote for environmental consulting services for an environmental plan for the levee project, a portion of which will be paid by DNR grants. He said the City needs to get the environmental study done for the levee project to proceed next Page 6 of 23 City Council Meeting September 7, 2010 spring. Councilmember Polehna asked whether the electric lines would be buried in conjunction with the levee project. Mr. Sanders said he had met with Xcel Energy several years ago and the estimated cost of placing the lines underground was $1.5 million; and that a portion of the cost is Xcel's requirement for a redundant line. Councilmember Polehna stated that is still something he would like to pursue. Councilmember Polehna also stated he had received calls about brushing out Pioneer Park; Mr. Sanders said that is on the list of things to do. City Administrator reminded the Council of the upcoming boards and commissions picnic. The meeting was recessed at 6:00 p.m. RECESSED MEETING Mayor Harycki called the recessed meeting to order at 7 p.m. Present: Councilmembers Cook, Gag, Polehna, Roush and Mayor Harycki Staff present: City Administrator Hansen City Attorney Magnuson Community Development Director Turnblad Finance Director Harrison Police Chief Gannaway Public Works Director Sanders Administration Secretary Manos PLEDGE OF ALLEGIANCE 7:00 P.M. Mayor Harycki led the Council and audience in the Pledge of Allegiance. APPROVAL OF MINUTES Possible approval of the August 17, 2010 budget workshop and regular meeting minutes and the August 24, 2010 Budget Workshop minutes Councilmember Cook noted a scrivener's error in the August 17 regular meeting minutes, page 6, "grating" should be "granting." Mayor Harycki clarified that the traffic signs referred to in the August 17 budget workshop minutes were traffic feedback signs, rather than speed tracking devises; he also asked that the August 24 budget workshop minutes, last paragraph regarding $5,000 for traffic sign should be clarified to indicate the $5,000 is for traffic feedback signs. Page 7 of 23 City Council Meeting September 7, 2010 Councilmember Roush asked .that the August 24 minutes reflect that he asked fellow Councilmembers to make weed harvesting of Lake McKusick a priority and /or to provide budgetary funds for that moving forward. Motion by Councilmember Polehna, seconded by Councilmember Roush to approve the minutes as amended. All in favor. PETITIONS, INDIVIDUALS, DELEGATIONS & COMMENDATIONS Pete Orr)ut Pete Orput, candidate for Washington County City Attorney, addressed the Council and audience. He provided a bit of his professional background and his goals as County City Attorney. He specifically spoke of his desire to implement a veterans' court in Washington County. Councilmember Polehna thanked Mr. Orput for his assistance with the Yellow Ribbon Committee. OPEN FORUM Richard Kilty, 118 W. Oak St., asked why the City owns a vacant house at 1372 S. Greeley St. and vacant masonry garage at 216 N. Fifth St. and why those parcels are not put on the market given the economic times and the Council's discussion regarding cutting library hours. City Attorney Magnuson noted that the Greeley Street property was acquired as part of the Lily Lake expansion and used as the park department headquarters for many years; he said that house has been vacant since the parks department moved to the new Public Works building. He said the other property is the old City garage. Mayor Harycki noted the former parks building is still used for cold storage of equipment. Mr. Kilty asked why the building on Boutwell Road couldn't be used for storage. Regarding cutting library hours, Mayor Harycki pointed out that was a suggestion from the Library Board as a possible way of meeting the budget target, but the Council unanimously decided it would find the necessary funding to avoid cutting those hours. Mr. Kilty spoke of the City's expenditure to provide a site for a new National Guard armory, noting that the Minnesota National Guard does not have any money to build facilities; he asked what assurance the City has in the purchase agreement that the National Guard will build an armory here. Mayor Harycki stated the City has sent a letter to General Kelly indicating that before the City's closes on the land, it wants assurances that the armory will in Page 8 of 23 City Council Meeting September 7, 2010 fact be built. City Administrator Hansen said he had received a call from National Guard representatives stating that they are working on providing the City with the requested assurances. Mayor Harycki pointed out that General Kelly has indicated these are dedicated funds for this armory, and that the usual requirement that a host city pays 25% of construction costs has been waived in this instance. Mr. Kilty pointed out that funding is dependent on Congress. Councilmember Polehna said he shared Mr. Kilty's concerns but said the Guard will provide written assurance that the City will get the project. Mayor Harycki also noted that the getting the site in question is tied to the search for a new fire station location. Mr. Kilty said he would hope that the City does not buy the property until it has funding for the armory. Councilmember Roush said he would favor selling off the former proposed armory site south of the Recreation Center to help offset the cost of the land purchase. It was noted the National Guard would sell the existing armory, as the City does not own that. CONSENT AGENDA 1. Resolution 2010 -129, directing payment of bills 2. Possible approval of use of Lily Lake Tennis Courts for sale of Christmas Trees — Stillwater Elks 3. Possible approval of Fire Prevention Week Signs /Banner placements 4. Resolution 2010 -130, approval of ICMA -RC Managed Account agreement 5. Possible approval of permit to sell — 3rd Annual Bean Bag Toss Tournament @ Lily Lake Park 6. Resolution 2010 -131, accepting and approving the quote from Natural Resource Group Inc. 7. Resolution 2010 -132, approval of Flood Hazard Mitigation Grant Agreement with the State of Minnesota, Department of Natural Resources 8. Resolution 2010 -133, resolution amending Resolution 2010 -95, Appointing Election Judges and Fixing Compensation Councilmember Roush asked about the League of Minnesota Cities Insurance Trust bill for $106,000 for fireworks endorsement. City Administrator Hansen said there are actually three bills included and the computer picks up the first bill entered; the fireworks endorsement is actually $250, with about $52,000 for workmen's compensation insurance and another $54,000 for general liability insurance. Page 9 of 23 City Council Meeting September 7, 2010 Councilmember Roush asked if the fireworks endorsement isn't something that the sponsor would cover. Mr. Hansen said fireworks have become a very big issue, so the League won't cover it unless there is a special endorsement, which the City has always carried. Motion by Councilmember Gag, seconded by Councilmember Roush to approve the Consent Agenda as presented. Ayes: Councilmembers Cook, Gag, Polehna, Roush and Mayor Harycki' Nays: None PUBLIC HEARINGS This is the date and time for a public hearing to consider a request from Brian Pilrain, Roman Market Inc., for a zoning text amendment to the VC- Village Commercial District to allow a restaurant with alcohol sales. Notices were mailed to affected property owners and published in the Stillwater Gazette on August 20, 2010 Community Development Director Turnblad reviewed the request. He noted that currently a family restaurant, as proposed, is not an allowed use in the VC District; the request is to allow that use with a special use permit. He said there are three issues remaining after meeting with neighbors, concerned residents, the property owner and restaurant owners regarding the proposed ordinance language. He reviewed the issue regarding closing time, noting that the Homeowners Association has requested a 10 p.m. closing time for all days of operation, while the draft language provides for a 10 p.m. closing Sunday through Thursday and 10:30 p.m. on Friday and Saturday. He said the 10:30 p.m. closing on Friday and Saturday is based on the Planning Commission and Joint Board actions, and that the restaurant owners would prefer the 10:30 closing, but said they could live with the 10 p.m. closing. Mayor Harycki asked for a clarification of closing time, saying that at the Joint Board discussion, it was the understanding closing meant "last call for service;" Mr. Turnblad said what is being suggested is that per the Joint Board conversation, closing time means the last call for service for both food and beverage service. Mr. Turnblad said the Planning Commission, Joint Board and Home Owners Association have agreed to a 60 % -40% food to alcohol ratio; he noted that is consistent with state law. Regarding parking, Mr. Turnblad noted the PUD for the District provides for meeting parking requirements through a combination of means, including on -site parking, on- street parking and cross - access /cross - parking easements and that the total combination of those means would enable this proposal to meet the parking requirements. He said neighbors closest to the VC District are concerned that parking would spill over into the neighborhood and have requested that signage be posted prohibiting restaurant - use parking; he said staff is fairly confident that parking can be accommodated in Page 10 of 23 City Council Meeting September 7, 2010 the area and noted that the suggested parking signage would be difficult to enforce. In discussion, it was noted that "resident only" parking signs have been used elsewhere in the City. Mr. Turnblad stated another issue is related to kitchen ventilation and the residual odor that occurs even with ventilation equipment. He said neighbors would prefer that equipment be utilized that would take out all of the kitchen - related smells and that in his discussions with the County and potential owners, such equipment is available, but it is very expensive, in comparison to the normal hood ventilation systems, and very maintenance intensive. Mr. Turnblad said there are also issues related to the marketing of alcohol; he said part of the discussion is that the original intent of the VC zoning district was that businesses in the district would capture the local market. He said in discussions it was suggested a stipulation that there be no "happy hour" would help capture the local market, rather than draw from a regional crowd. Mr. Turnblad said the Planning Commission and Homeowners Association both put that stipulation in their recommendation. He said the Joint Board thought that allowing a "happy hour" that wouldn't go past 6 p.m. would be acceptable. He stated that the Joint Board also felt there should not be restrictions on regional advertising and felt having the 60 -40% food to alcohol sales is more effective than where a business advertises for customers. He said the owners would like the option of having a "happy hour" and regional advertising to provide them with more flexibility. Regarding the issue of outdoor amplified music, he said the Planning Commission and Homeowners Association both wanted to prohibit live music and outdoor amplified music. He stated that the Joint Board felt live music indoors would be acceptable as long as it is kept at a level that it can't be heard outside, and also felt that allowing recorded music outdoors was OK. He said the owners would like to be able to have recorded music outdoors. Mayor Harycki noted there are two public hearings related to this request and wondered whether it would be acceptable to hold the hearings simultaneously. City Attorney Magnuson said that would be acceptable. Mayor Harycki opened the public hearings for the zoning text amendment and for the issuance of an on -sale and Sunday liquor license. Spencer Wong, 137 Liberty Parkway, expressed concerns about food aromas and the lack of parking spaces. He noted the previous tenant was a coffee shop /ice cream shop with no odors involved. He said the ventilation proposed is the standard restaurant ventilation and said his chief concern is what can be done if there are odors encroaching on the residential area; he expressed a concern that if approved, the City would be limited in taking any actions should problems arise related to the odors. He also expressed concern about parking, Page 11 of 23 City Council Meeting September 7, 2010 especially in regard to children in the neighborhood. He stated that there is currently sports practices at the field adjacent to the proposed restaurant and said the parking lot proposed for restaurant use is already being used by cars related to the sporting activities taking place. He said there is not enough parking unless restaurant patrons parks on residential streets or in front of other businesses in the commercial area; he asked for clarification of the plan to address parking concerns before the proposal is approved. Regarding the concern regarding odors, Mr. Turnblad said the proposed ordinance would allow a family restaurant to operate by special use permit. He explained that special use permits are reviewable so if there are lots of complaints about smells coming from the restaurant, the permit can be brought back to the City for public hearing and the Council could look at re- tailoring the conditions related to the special use permit. Related to parking, Mr. Turnblad suggested that the parking in the commercial district could be signed commercial parking only or restaurant parking only, just as streets in the residential area could be signed residential parking only. Councilmember Roush noted that cooking aromas vary with the types of food and method of cooking and suggested the owners might be able to address that concern. Todd Remely, president of the Liberty on the Lake Homeowners Association, said the neighborhood is very supportive of the proposed business. He said the question is not whether the neighborhood wants a restaurant or not, a family restaurant has been wanted in the district for many years. He informed the Council that the issue is not with the Pilrains, the applicants, but is with the liquor license and future owners. He said once a liquor license is issued, it is very difficult to take away, and future owners might have a very different vision of their business, perhaps a full -blown bar. He said current zoning was put in place to prevent a full -blown bar from being in that location. He stated that the Homeowners Associations proposed conditions are aimed at keeping the spirit of a family restaurant and protecting the neighborhood's children against a full - blown bar at some point in the future. He addressed the closing time of 10:00 p.m. by stating that it was the most frequently mentioned time at the neighborhood meeting regarding the proposal, and he said owners seemed receptive to that closing time. With respect to parking, he said, it is hoped the Council will promise to look at a solution if a problem is encountered in the future. With regard to the food aroma, he said the Association recognizes it is a very expensive to install the proper filtration systems, so again would look to the City to provide some kind of mechanism /avenue to pursue a solution should a problem in that area arise in the future. Regarding amplification and advertising, he said the Homeowners Association is looking for something to proactively put into the ordinance to avoid a full -blown bar at some time in the future. Page 12 of 23 City Council Meeting September 7, 2010 Councilmember Polehna asked about outdoor music amplification; Mr. Remely said what the Homeowners Association is trying to prevent is a beer garden atmosphere with a loud band and would not necessarily be opposed to a CD played through speakers at a reasonable volume. Mayor Harycki noted that in the Joint Board discussions, it was pointed out there was live music (guitar player) and an outdoor speaker at that location in the past, but no one ever sought permission to have that. Mr. Remely reiterated that the Homeowners Association was trying to prevent loud music or a live band. No other comments were received, and the hearings were closed. Councilmember Roush asked that the Plains be allowed to answer the question regarding foods /apparatus. Brent Pillaring described the ventilation system, which is a three - tiered system, general hood ventilation over some of the main equipment, and two special units, a wood -fired grill, which takes a special blast fan just to get the smoke up and out of the kitchen and a direct vent chimney, which comes off the wood - burning pizza oven. He said since the systems would be going up three floors, it is believed the odors will be dispersed so they won't be just dumped into the neighborhood. He said they are looking at installing an upgraded double -V baffle in the filters, the next step up from the standard ventilation system in a commercial kitchen. Regarding smoke issues, he said they burn special wood, which burns very hot and clean; when the oven is started in the morning, there is a little puff of smoke as it gets going and clears the flue through the chimney, but said throughout the day. people shouldn't notice any smoke because the wood burns so clean. He pointed out the chimney at another establishment they own is only one -story high and they have had no complaints from neighboring businesses or homeowners; this chimney will be three times that height. On a question by Councilmember Roush, Mr. Pilrain said they propose to have one fryer only, with more focus on the oven and grilled items. Councilmember Polehna said he has had several calls from folks who would like to take the family for a pizza after Pony football games and asked if the Pilrains are comfortable with the 10 p.m. last call deadline. Mr. Pilrain said they are trying to meet the needs and concerns of all people in the community and said they would defer to the Council's decision on what would be a fair closing time. Councilmember Gag said that was what the applicants indicated at the Planning Commission — that they would be willing to work within the given parameters; it was the Planning Commission that felt 10 p.m. would be too restrictive and possibly put the business at a competitive disadvantage and the Commission recommended the 10:30 p.m. closing for Friday and Saturday. Page 13 of 23 City Council Meeting September 7, 2010 On a question by Mayor Harycki, City Attorney Magnuson noted the proposed hours would be in the zoning ordinance and amending a zoning ordinance is difficult to do should the applicants wish to change the hours at some point in the future; he said the hours are in the ordinance to address the concerns about future owners and the vacant parcels that could be developed as restaurants. Councilmember Roush and Mayor Harycki noted that the Joint Board had similar concerns with an across - the -board 10 p.m. closing. Mayor Harycki asked the applicant if there is anything they could do to alleviate the parking concerns. Mr. Pilrain said there is an overflow parking lot which the City has an easement on; he said patrons of the tennis courts and sports field are welcome to use that lot, as well as their patrons so cars don't spill into the residential area. Councilmember Gag suggested perhaps posting a sign by the business entry asking patrons not to park on residential streets and he thought the Homeowners Association request is reasonable — that the issue be addressed if a problem develops in the future. Mr. Pilrain agreed that signage asking patrons not to use residential streets would be a good way to proceed. Councilmember Polehna asked about an agreement to use the veterinary hospital's parking lot; Mr. Pilrain said he thought that agreement had been finalized between the property owner and the owner of the vet hospital. Regarding the issue with odors, City Attorney Magnuson pointed out that is a classic example of a nuisance and if odors are really causing people to lose the enjoyment of their own property or decreases the market value of their property, the property owner has a private action against the creator of the nuisance. Later in the discussion, Mr. Turnblad pointed out that the business will be operating with a special use permit, so if smells become an issue, the Council can look at additional conditions for the special use permit. Regarding marketing, Mayor Harycki said he would be concerned with the definition of regional advertising. Councilmember Gag said he didn't believe as a government entity, the City should be restricting advertising. Councilmember Roush suggested that is dappling in the area of 1 St amendment rights. Page 14 of 23 City Council Meeting September 7, 2010 There was discussion of the issue with allowing a "happy hour." Mayor Harycki said he understood the Homeowners Association position that they would like more of a restaurant and less of a bar there. Councilmember Gag pointed out there is already a requirement for the 60 -40 split for food to liquor sales. Regarding closing hours, Councilmember Roush asked about the average stay of patrons after last call for service. Mr. Pilrain said that would be difficult to say and said they would like to have some leeway so patrons can enjoy their meal /beverage in a leisurely way; he said they would be comfortable with the 10:30 closing (last call for service) on Friday and Saturday. On a question by Councilmember Cook, it was explained that a special use permit has been issued pending the rezoning and a special use permit can be reviewed upon complaint. There was some discussion of some of the language in the proposed zoning ordinance amendment regarding entertainment/music. Mr. Turnblad noted this is the first reading of the ordinance and the language can be tweaked somewhat before the second reading. Motion by Councilmember Roush, seconded by Councilmember Polehna to approve the first reading, of the ordinance amending City Code Chapter 31, Section 31 -325 as presented. On a question by Councilmember Cook, Councilmember Roush read the language he moved to approve: "Gross receipts are at least 60% attributable to the sale of food. No live entertainment is permitted on the site than can be heard outside of the building. No live amplified outdoor entertainment is permitted. Hours of operation shall be limited to 6 a.m. to 10 p.m. Sunday through Thursday and 6 a.m.to 10:30 p.m. Friday and Saturday. The closing time in the preceding sentence shall mean the latest last call for service shall occur. No happy hour specials shall occur past 6 p.m." Mr. Turnblad reiterated that the special use permit, which is outside of the motion for the ordinance amendment, addressed some of the other concerns discussed. There was additional discussion about the music /entertainment. Mayor Harycki said that he thought the desire was to allow a small speaker outside playing at a reasonable volume level; much like Liberty House Cafe has done in the past. There was discussion as to whether "live amplified" would prohibit a DJ. Page 15 of 23 City Council Meeting September 7, 2010 Councilmember Cook said she found the language confusing if it is to apply to future businesses as well. Mr. Magnuson suggested changing the wording to "live or amplified" outdoor entertainment is permitted. Councilmember Roush amended his motion to include that language change; the Councilmember Polehna agreed to the amended motion. Councilmember Roush pointed out that would eliminate outdoor "music." It was agreed to have Mr. Turnblad wordsmith the motion to reflect the option for allowing a small speaker for the outdoor area for the second reading. Ayes: Councilmembers Cook, Gag, Polehna, Roush and Mayor Harycki Nays: None This is the date and time for a public hearing to consider the issuance of an On -Sale and Sunday Liquor License for Roman Market, Inc., DBA: Patriot's Tavern located at 145 New England Place. Applicant: Brian Pilrain. (Resolution — Roll Call) Motion by Councilmember Gag, seconded by Councilmember Polehna to adopt Resolution 2010 -134, approving the Issuance of a New On -Sale and Sunday Liquor License (Patriot's Tavern). Ayes: Councilmembers Cook, Gag, Polehna, Roush and Mayor Harycki Nays: None Councilmembers Polehna expressed his appreciation for the cooperation shown in the process of moving this project forward. UNFINISHED BUSINESS Live Music on Deck —American Legion (see August 17, 2010 minutes) Claudia Mechelke and Brent Banchy were present representing the American Legion. Ms. Mechelke presented a petition signed by people in support of the request; she noted that some of the highlighted signatures were from people who live within a four -block radius of the Legion. Ms. Mechelke pointed out that other signatures in support of the request were from people who live as far away as Minneapolis who come into town, spend money here and enjoy the music on the deck. Councilmember Cook noted in the last public hearing, the process for getting approval of a restaurant involved quality of life issues from restricting parking to smells and music. Councilmember Cook said those residents have the advantage of an organization that can pull together people quickly and work together on an agreement. Unfortunately, she said, when folks live in a more urban setting, closer to the downtown, residents don't have that cohesive kind of Page 16 of 23 City Council Meeting September 7, 2010 group. Councilmember Cook said people have continued to contact her and indicate that this is an issue for them and they feel very strongly about the Council protecting people's right to some peace and quiet as much as other people's right to play music. Councilmember Cook said the issue is not with the Legion, it is with the compromise to turn the volume down. Mr. Banchy said since the last meeting, the Legion has redirected the speakers to face east and has turned the volume down and that he has learned subsequently that they are not the only music venue in the area, citing the library as an example of where music is being played for weddings, etc. Mr. Banchy suggested the problem may be a combination of venues playing simultaneously. Ms. Mechelke questioned why the Legion is being brought to task and not the other venues, such as the library. Councilmember Cook pointed out the library has been the subject of hearings with the neighbors. Councilmember Gag said he thought the Legion was being brought to task because it did not have the necessary permit. Mr. Banchy said since the last meeting, he has been super sensitive about the music because he does not want to jeopardize the ability to have music on the deck and has asked that the volume be turned down; he said the Legion is doing what it can to minimize the impact on the neighborhood. He said there are likely only one or two weekends left this season and that the Legion's 90 anniversary will take place on September 19 but it is uncertain whether there will be music or not. Mayor Harycki said he thought some progress has been made since the last meeting and the Legion has taken some steps to try to improve the situation. Mayor Harycki suggested that the Legion send somebody to the parking ramp when the band starts playing and if the music can be heard plainly, and then turn the volume down. Councilmember Gag pointed out these are the same conversations that have taken place in the previous discussions about the issue and he thought it was difficult to single out the Legion, except for the fact that it hasn't yet obtain the required special use permit. Councilmember Gag pointed out that when the request for the special use permit is heard by the Planning Commission, a public hearing will take place, the same process that other downtown venues have had to go through. Councilmember Gag invited all interested persons to attend the Planning Commission's public hearing on this matter. Motion by Councilmember Gag, seconded by Councilmember Polehna to approve the final two dates of the season, September 19 and 26, pending the Planning Commission's decision regarding the 2011 season. Page 17 of 23 City Council Meeting September 7, 2010 Councilmember Gag clarified that the hours would be 4 to 8 p.m. Councilmember Gag said he would clarify the hours at the Planning Commission's discussion. Councilmember Polehna urged the Legion to keep the volume under control. Motion passed 4 -1, with Councilmember Cook voting no. Possible approval of findings of fact for Trom variance appeal denial City Attorney Magnuson said he believed the proposed findings of fact accurately reflect the Council's action in the straw vote taken at the previous meeting. Mayor Harycki asked if the findings reflect that Council's action to deny without prejudice. Mr. Magnuson replied in the affirmative. Motion by Councilmember Gag, seconded by Councilmember Polehna to adopt Resolution 2010 -135, Approval of findings of fact for Trom variance appeal denial Councilmember Roush noted that he voted against denial during the Council's consideration of the request and wondered whether a similar vote on the findings would have any impact on the applicant's standing. Mr. Magnuson said the no vote would not have an impact as approval requires only a simple majority and would be consistent with Mr. Roush's last vote. Ayes: Councilmembers Cook, Gag and Polehna Nays: Councilmember Roush and Mayor Harycki NEW BUSINESS Possible 1 St reading of Ordinance 1020, an ordinance regulating Subsurface Sewage Treat Systems in the City of Stillwater City Attorney Magnuson explained that on September 23, 2009, Washington County adopted a model code as required by the Minnesota rules. He said the model code modernized the regulations for on -site septic systems. He stated that there are still a number of on -site septic systems in the City and that communities are required to adopt the regulations by their own means within one year after the adoption of the County model code or the model code becomes the operative regulations in a community. Mr. Magnuson said this is a standard ordinance to adopt the official code of Washington County as the City's own; and that it clears up the authority and regulations for the systems. He said the regulations allow the on -site septic systems to continue to be used if they are not harmful to the environment; he said it relaxes the standards for some of the older systems that are still functioning well so they can be maintained until the system fails. On a question by Councilmember Roush, Mr. Magnuson said this would not involve any additional expense to the City. Page 18 of 23 City Council Meeting September 7, 2010 Motion by Councilmember Roush, seconded by Councilmember Gag to approve the first reading of Ordinance 1020, an ordinance regulating Subsurface Sewage Treat Systems in the City of Stillwater. Ayes: Councilmembers Cook, Gag, Polehna, Roush and Mayor Harycki Nays: None Discussion on Commission Openings City Administrator Hansen noted the Human Rights Commission is three members short, Parks is one voting member short and Planning Commission is two voting members short. He said City Clerk Ward has indicated that the Planning Commission, which consists of nine members, is always short of membership and she suggests that going to a seven - member body might be easier to support a full complement of members. Mr. Hansen noted going to a seven - member Planning Commission would require an ordinance change. He noted that City Clerk Ward is also suggesting that consideration be given to eliminating the Human Rights Commission as there is a state Human Rights Commission for people to go to with complaints /concerns. Mr. Hansen said if the Council desires, he could contact the City's Human Rights Commission to gauge their feelings on possibly eliminating the City's group. Councilmember Roush suggested that places might be found for the current Human Rights Commission members on other City commissions. Councilmember Polehna noted that one Human Rights Commission member recently resigned because he wanted to be more involved. On a question by Mayor Harycki, City Attorney Magnuson stated the Human Rights Commission was established by ordinance, not by the City Charter. Councilmember Polehna, who is the Council liaison, said there are not a lot of issues being brought to the Human Rights Commission, so the Commission has changed its focus to sponsoring speakers, ADA issues, etc.; and that the problem has been the lack of issues to discuss and members want more action. It was consensus to have City Administrator Hansen contact the Commission members by telephone to get input on the issue. Mr. Hansen said City Clerk Ward has put together an amendment to the ordinance to reduce the Planning Commission to seven members for the Council's consideration. Councilmember Roush asked Councilmember Gag, liaison to the Planning Commission, whether he thought there was any difference in the quality of input given by nine versus seven members. Page 19 of 23 City Council Meeting September 7, 2010 Councilmember Gag said there have been many times when there have been lots of applicants to fill the nine positions, noting that the City went to interviewing because there were so many applicants in the past. Councilmember Gag said he thought a Commission of nine members was good, noting there is a lot of material and times when sub - committees are formed. Councilmember Roush said he thought the City should strive for the nine members as is provides more insight and better representation of the sentiments of the community. Councilmember Polehna spoke in favor of more equal representation of wards on the Commission, noting that if membership is reduced to seven, that would be more difficult to achieve. It was consensus to leave the Planning Commission at nine members. Possible approval of Take Me to the River Festival — ArtReach St. Croix City Administrator Hansen reviewed the special event request. He said the request has gone through the normal review process. He said the request is before the Council because it involves usage of Lowell Park; he noted the request involves only one hour of use and doesn't require a lot of City resources. Motion by Councilmember Polehna, seconded by Councilmember Roush to approve the event. All in favor. Possible adoption of resolutions: Adopting the proposed tax levy for the payable year 2011, Adopting the proposed budget for the year 2011, and Setting payable 2011 Truth - N- Taxation Pubic Hearing dates There was discussion of ways to deal with the health insurance shortfall. Mr. Hansen pointed out the City is above the 50% level in reserves and said he thought use of some of those funds would be appropriate; he also noted there is $100,000 budgeted for seal coating that likely will not be used. Mayor Harycki reviewed the Council's previous decisions regarding the budget and the last minute gap that has occurred due to a higher than anticipated increase in health insurance rates. Finance Director Harrison said the final budget will reflect the levy amount adopted by the Council; she stated a levy amount of $10,158,367 is what the Council decided upon at the August 24 budget meeting. Mayor Harycki suggested that $28,000 of the insurance shortfall be taken from reserves and the remainder from the seal coat budget. Councilmember Polehna expressed concern about taking money from the seal coat budget as that is a program the City may want to put back the following year; he asked for a recommendation from Mr. Hansen. City Administrator Page 20 of 23 City Council Meeting September 7, 2010 Hansen said he thought this proposal would be fine, but noted that what the City has done in the last three budget years is not necessarily sustainable for the future and that the City cannot not sell a bond issue every year and can't keep laying people off. City Administrator Hansen said he thought it would be better not to raise taxes this year and hopefully do that when the economy is in better shape. Mayor Harycki pointed out that there is an issue with seal coating as it seems to cause some deterioration of the top portion of the pavement, so the decision was to leave the $100,000 in the budget for seal coating but not spend it until it is determined whether the process is harming the pavement. Councilmember Gag pointed out this is an issue related to the City's overall street maintenance plan — where to get the money to continue to maintain the street system. Mayor Harycki pointed out that if the $100,000 for seal coating isn't spent this year it would roll over into reserves for the following year, so the end result would be the same — the reserve fund would be down $28,000. Councilmember Gag said he was comfortable with how the Council arrived at the numbers it did. Motion by Councilmember Roush, seconded by Councilmember Polehna to adopt Resolution 2010 -137, adopting the proposed tax levy for the payable year 2011. Ayes: Councilmembers Gag, Polehna, Roush and Mayor Harycki Nays: Councilmember Cook Councilmember Cook stated that she voted no because she does not support the tax levy for the armory. Finance Director Harrison said she would fill in the numbers for the proposed budget based on the adopted levy and the decisions made tonight on the health insurance. She said the Council needed to vote on the budget as it must be sent to the County by September 15, but said she could bring the final numbers back to the Council. She said the vote will be to approve revenues and expenditures that reflect the $10,158,367 levy. Councilmember Cook asked whether the armory is included in this vote; Ms. Harrison said the armory is only included in the levy vote. Motion by Councilmember Gag, seconded by Councilmember Polehna to adopt Resolution 2010 -138, adopting the proposed budget for the year 2011. Ayes: Councilmembers Cook, Gag, Polehna and Mayor Harycki Nays: Councilmember Roush Page 21 of 23 City Council Meeting September 7, 2010 Councilmember Polehna, seconded by Councilmember Roush to adopt Resolution 2010 -139, Setting payable 2011 Truth -N- Taxation Pubic Hearing, for 7 p.m. Tuesday, December 7. Ayes: Councilmembers Cook, Gag, Polehna, Roush and Mayor Harycki Nays: None COUNCIL REQUEST ITEMS Councilmember Cook spoke of the situation regarding vendors in the downtown area and asked for a report on the situation, whether the vendors are permitted. Chief Gannaway said the late night downtown vendors do have special use permits. City Administrator Hansen said allowing vendors to operate during the 4 th of July has been practice over the past 10 or 15 years; it was noted that vendors are part of the annual application for the Car Show. Councilmember Polehna provided an update on the Yellow Ribbon Network. He said a joint program is planned with Trinity Lutheran Church for Veterans Day, and that he would be coming back to the Council with a request for a motion in support of the Red Bulls. He provided pins and stickers for the Council in recognition of their previous support. City Administrator Hansen reminded the Council it would be adjourning to executive session. ADJOURNMENT to Executive Session to discuss labor relations Motion by Councilmember Roush, seconded by Councilmember Polehna, moved to adjourn to executive session at 9:37 p.m. All in favor. Ken_Wrycki, Mayor AT STS Diane F. Ward, City Clerk Resolution 2010 -129, directing payment of bills Resolution 2010 -130, approval of ICMA -RC Managed Account agreement Resolution 2010 -131, accepting and approving the quote from Natural Resource Group Inc. Resolution 2010 -132, approval of Flood Hazard Mitigation Grant Agreement with the State of Minnesota, Department of Natural Resources Resolution 2010 -133, resolution amending Resolution 2010 -95, Appointing Election Judges and Fixing Compensation Page 22 of 23 City Council Meeting September 7, 2010 Resolution 2010 -134, approving the Issuance of a New On -Sale and Sunday Liquor License (Patriot's Tavern). Resolution 2010 -135, Approval of findings of fact for Trom variance appeal denial Resolution 2010 -136, NOT USED Resolution 2010 -137, adopting the proposed tax levy for the payable year 2011. Resolution 2010 -138, adopting the proposed budget for the year 2011. Resolution 2010 -139, Setting payable 2011 Truth -N- Taxation Pubic Hearing Page 23 of 23