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HomeMy WebLinkAbout2010-11-16 CC MINQ - I g1wate IMF 1f1ETN►L♦10E Yf ■IEEEISTA CITY COUNCIL MEETING November 16, 2010 REGULAR MEETING Mayor Harycki called the 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 Fire Chief Glaser Police Chief Gannaway Public Works Director Sanders Administration Secretary Manos PLEDGE OF ALLEGIANCE Mayor Harycki led the Council and audience in the Pledge of Allegiance. APPROVAL OF MINUTES 7:00 P.M. Motion by Councilmember Gag, seconded by Councilmember Cook, to approve the October 19 regular and executive session meeting minutes; October 26, 2010, regular and recessed meeting minutes; and November 5, 2010, Canvass Board minutes. Councilmember Polehna noted that there was a correction to the write -in vote total in the Canvass Board minutes, which he passed along to City Administrator Hansen. Councilmembers Gag and Cook agreed to amend the motion to approve with the noted vote total correction. All in favor. OPEN FORUM No comments were received. STAFF REPORTS Police Chief Gannaway updated the Council on storm - related calls his department had received during the previous weekend. He informed the Council of a resident who had been the victim of a lotto scam and reminded citizens of the importance of notifying authorities if they or someone they know has been victim of such a crime. He told the Council that an officer in the department is now trained in commercial vehicle inspections and stated that there are very few over - length vehicles crossing the lift bridge now. He spoke of a recent incident that resulted in the arrest of a professional shoplifter and commended the efforts of Officer Belisle in making that arrest. Fire Chief Glaser also spoke of storm - related calls his department responded to, one of which was a carbon monoxide - related incident; he reminded citizens to property vent internal combustion engines and use such equipment outside. He noted that he and City Council Meeting November 16, 2010 Deputy Chief Ballis have been attending meeting as Washington County begins the process of selecting a new computer -aided dispatch system. He also stated staff members have been getting behind - the -wheel training in the new air boat and stated that he thought the craft would be in- service shortly. Administration Secretary Manos reminded citizens that the 2011 Truth in Taxation budget meeting will take place on Tuesday, December 7, during the regular Council meeting at 7:00 p.m. Public Works Director Sanders stated that he had several recent meetings with the DNR regarding the boat launch and the Zephyr trail. He stated that the DNR has indicated these are high priorities and that agency will work to find funding to enable the projects to proceed. Mr. Sanders stated that staff has had conversations with the City of Bayport regarding the possibility of offering some engineering services to that city; he stated that two quotes were submitted to Bayport, one for pavement management planning and another for some street work design for drainage improvements. He stated that Stillwater was low bidder on the street project and the bid was accepted. Mr. Sanders asked for approval to continue to be a member of the state fuel consortium; he stated that he would like to purchase 60% of the fuel through that program for additional savings. Mayor Harycki asked about the savings realized by utilizing the consortium; Mr. Sanders stated that in the first year, the City saved about $6,000 and is about $1,000 ahead this year as fuel prices have stabilized a bit more. Motion by Councilmember Roush, seconded by Councilmember Polehna, to approve the requested participation in the state fuel consortium at 60% of the fuel needs. All in favor. Councilmember Cook asked about the funding for the Zephyr trail; Mr. Sanders indicated that at this time, the DNR has about $700,000 for land acquisition of the estimated $4 million cost. Mr. Sanders reviewed discussions regarding possible trailhead locations. On a question by Mayor Harycki, Mr. Sanders stated that there had been discussions regarding the City's plans for the bike trail through downtown and potential restroom at the pedestrian plaza location; he stated that the DNR has not ruled that potential cooperation regarding the cost of a restroom at that location. City Administrator Hansen stated that he had attended the meetings regarding both the trail and boat landing, and reported that the DNR is extremely enthusiastic about the projects and stated that the DNR is not looking at anything from the City other than cooperation. Mr. Sanders also provided an update on the recent storm - related activities. Mayor Harycki congratulated Mr. Sanders on the effort related to a rain garden installed to address a property owner's concerns about a road project. Councilmember Polehna spoke of efforts regarding buckthorn removed from the City - owned land on Nightingale Boulevard. Mr. Sanders spoke briefly of the success of the sale of the old street signs. CONSENT AGENDA Resolution 2010 -171, directing payment of bills Resolution 2010 -172, resolution approving State of Minnesota Joint Powers Agreement with the City of Stillwater on behalf of its City Attorney and Police Department Resolution 2010 -173, Approving Renewals of On -Sale, Off -Sale, Club, Wine, Page 2 of 14 City Council Meeting November 16, 2010 Sunday On -Sale, On -Sale 3.2 %, Off -Sale 3.2% Liquor Licenses and Tobacco Licenses For 2011 Resolution 2010 -174, resolution relating to financing of certain proposed projects to be undertaken by the city of Stillwater; establishing compliance with reimbursement bond regulations under the Internal Revenue Code Councilmember Roush asked about item 11 (joint powers agreement with the state), whether the amendments to the agreements would have to be signed by both parties or whether the two departments are independent of each other. City Attorney Magnuson responded that both departments would have to agree to any amendments. Councilmember Cook asked about a bill related to nuisance property and Mr. Hansen replied it is for work related to abandoned property and noted the cost is recovered by special assessed to the property. Councilmember Cook also asked about a bill related to the Veterans' Memorial and Mr. Hansen reported that the City has a multi -year agreement that is still in effect, but noted the City could choose not to renew the agreement when it expires. Councilmember Cook asked for an explanation of item 13 (resolution related to financing of certain proposed projects). Mr. Hansen noted this resolution is needed for the City to reimburse itself from bond sales; he stated that this resolution is related to the armory project and noted the resolution does not reflect the actual cost, but includes latitude to include unforeseen expenses. Mayor Harycki asked about a bill for replacement of a gate arm at the parking ramp and whether it is related to vandalism; Community Development Director reported that some of the damage has been vandalism and it is hoped that when surveillance cameras are in place, the incidents will lessen. Mayor Harycki asked whether there is a way to retrofit the damaged equipment; Mr. Turnblad replied that staff would look into options. Motion by Councilmember Gag, seconded by Councilmember Polehna, to approve the Consent Agenda as presented. Ayes: Councilmembers Gag, Polehna, Roush and Mayor Harycki Nays: Councilmember Cook PUBLIC HEARINGS This is the day and time for a public hearing to consider the transfer of an On -Sale & Sunday liquor license to Rafters, LLC.; DBA: Rafters, 317 Main Street S., Stillwater, MN, Larry Cramer, applicant. Notice was published in the Stillwater Gazette on November 12, 2010. City Administrator Hansen noted approval should be contingent on approval by police, finance, fire, and building departments and Minnesota Liquor Control. Mayor Harycki opened the public hearing. No comments were received, and the hearing was closed. Motion by Councilmember Gag, seconded by Councilmember Roush, to adopt Resolution 2010 -175, approving transfer of an On -Sale & Sunday liquor license to Rafters, LLC.; DBA: Rafters, 317 Main Street S., Stillwater, MN. Ayes: Councilmembers Cook, Gag, Polehna, Roush and Mayor Harycki Nays: None Page 3 of 14 City Council Meeting November 16, 2010 Case No. 2010 -42. This is the day and time for a public hearing to consider a request from City of Stillwater for a zoning text amendment related to existing nonconforming lots of record and structures and any variances related thereto. Notice was published in the Stillwater Gazette on November 5, 2010. (Ordinance — 1S Reading) Community Development Director Turnblad reviewed the request and noted that the proposed amendment would deal with routine variance requests related to existing nonconforming lots and structures. He spoke of the impact of a recent Minnesota Supreme Court ruling that would make it extremely difficult to grant such variances. He stated that the amendment would allow an addition to existing (pre -1963) nonconforming structures and lots of record as long as the new addition meets all zoning requirements. He stated that the amendment would allow owners of historic structures to make additions as long as the addition conforms to all current zoning standards. Councilmember Cook asked Attorney Magnuson about the court ruling. Mr. Magnuson reviewed state statute related to the granting of variances, which state a variance cannot be granted unless there is a hardship involved; he reported that the new ruling has changed the interpretation of hardship to mean "no reasonable use." Mr. Magnuson indicated that the new language would essentially preclude the issuance of any variances, whereas, in practice, variances of the kind described by Mr. Turnblad have been routinely granted. He stated that the League of Minnesota Cities has recommended that cities either amend their ordinance to recognize that some of the rules should be more flexible, or stop granting variances and wait until the League of Minnesota Cities approaches the Legislature for a change in the statue language. He noted that townships and cities are held to different standards related to the granting of variances. On a question by Councilmember Cook, Mr, proposed amendment would not provide requests. Turnblad and Mr. Magnuson stated that the more leniency /latitude to other variance Mayor Harycki asked about any impact on past decisions; Mr. Magnuson stated that there would be no impact as the standards would not be retroactive. Mayor Harycki opened the public hearing. No comments were received, and the hearing was closed. Councilmember Cook expressed concern about trying to get around a Supreme Court ruling and asked whether there was any indication in the court opinion as to why it would so restrict the granting of variances. Mr. Magnuson stated that the restrictive language has been in the statute for many years, but about 20 years ago the language was construed to define hardship as "practical difficulties ". This court ruling, he stated that, went back to a very conservative and strict reading of the statute and indicated that if cities want that changed, the Legislature should rewrite the statute. Councilmember Gag, speaking as a member of the Planning Commission, stated that the Planning Commission felt the proposed amendment made sense based on the Supreme Court ruling. Motion by Councilmember Gag, seconded by Councilmember Polehna, to approve the first reading of the ordinance. Ayes: Councilmembers Gag, Polehna, Roush and Mayor Harycki Nays: Councilmember Cook Page 4 of 14 City Council Meeting UNFINISHED BUSINESS November 16, 2010 Possible approval of second reading of Ordinance 1021, swimming pool safety barrier ordinance Community Development Director Turnblad noted that subsequent to the first reading of the ordinance, Councilmember Roush asked for an opinion related to the grandfathering of existing pool covers; he noted that Mr. Magnuson's opinion was included in the agenda packet. Councilmember Roush stated the request for clarification was based on the request of several residents and asked Mr. Magnuson to review his opinion. Mr. Magnuson reviewed the pertinent state statute, which states that any nonconformity existing at the time of adoption of an additional official control may be continued but not expanded unless the nonconformity is discontinued for more than one year. Councilmember Roush asked if the grandfathering would extend to all types of covers, including a winter cover; Attorney Magnuson responded that the previous ordinance indicated that a barrier must be of sufficient strength to be impenetrable and stated that the question would be whether a cover is reasonably safe. Motion by Councilmember Polehna, seconded by Councilmember Roush to adopt Ordinance 1021, an Ordinance amending the Stillwater City Code Chapter 33, entitled Building Code by revising the safety barrier standards for swimming pools. Councilmember Roush thanked the Lennartsons, who were in the audience, and other concerned residents for their involvement in the process. Ayes: Councilmembers Cook, Gag, Polehna, Roush and Mayor Harycki Nays: None Parade Committee — Last call for volunteers Mayor Harycki asked that any residents interested in working on the Lumberjack Days parade committee contact City Hall. NEW BUSINESS Possible approval of Recreation Center concession contract City Administrator Hansen reported that there are some significant changes to the previous agreement presented to the Council for consideration. He indicated that the proposal has been scaled back quite a bit, with not a lot of construction improvements made to the Recreation Center. He stated that, if approved, this would be a 10 -year agreement, with the City having the right to terminate with a minimum of 60 -day notice. He stated that the proposed rent to be paid by Gartner is $30,000 a year, rather than the previous $60,000, plus 20% of gross sales that exceed $120,000. Mr. Hansen stated that, while he does have some skepticism, the right to cancel alleviates some of that skepticism. Recreation Center Manager Doug Brady briefly addressed the change in the proposed rent arrangement and noted that Gartner's intent is to start the operation slowly, rather than make drastic changes as first envisioned, to make sure the arrangement works for Page 5 of 14 City Council Meeting November 16, 2010 both parties. Mr. Brady stated that he thought there is the opportunity for great growth, with very little downside to the arrangement. On a question by Mayor Harycki, Mr. Brady stated that initially the operation would not be a Dairy Queen operation as franchise approval is needed. Councilmember Roush asked about the disposition of existing equipment and any future equipment; Mr. Brady stated that Gartner would be allowed to use the existing equipment and the City would retain the equipment if the agreement is terminated. If structural improvements are added, such as exhaust hood and grill, that equipment would stay and become the property of the City. Councilmember Roush asked about operating hours; Mr. Brady stated that hours would be when the Recreation Center is open for general business, but stated that he would expect that the hours would be less than the Recreation Center's. Councilmember Roush asked about the $30,000 versus $60,000 rent. Mr. Brady stated that total concession sales were used for the $60,000 figure, but looking at the portion of total sales that Gartner will be operating, $30,000 is a more realistic figure, noting that the Recreation Center will continue to realize the sales from the second concession counter. Councilmember Roush stated that he would like to see the actual breakdown of the sales figures before finalizing the agreement. In further discussion, Mr. Brady noted there is the opportunity for the operation to become a full - fledged Dairy Queen operation, which would be an amenity to patrons; he also noted the agreement would minimize management responsibility for the Recreation Center and reduce the chance for revenue loss, plus provide the opportunity for growth and new equipment. Mr. Brady also noted having a Dairy Queen operation might provide a draw for other activities, such as birthday parties, which would result in additional revenue for the Recreation Center. Councilmember Polehna questioned whether the City would be losing money with the $30,000 rent as proposed; Mr. Brady reiterated that the $30,000 would be a break -even number for the City. On a question by Councilmember Cook, Mr. Hansen stated that his primary reservation was with the proposed rent, but again stated that the right to cancel alleviates that concern. Mayor Harycki stated that he would like to see the requirement for a security /damage deposit added to the agreement. Mayor Harycki pointed out that the City did go through the RFP (request for proposal) process, with no responses received. Councilmember Roush again stated that he would like to see the accounting records before final approval. Mr. Brady noted that the hockey season has started and wondered whether it might not be possible to proceed with the operation before final Council action and the council had further discussion Motion by Councilmember Gag, seconded by Councilmember Cook to adopt Resolution 2010- 176, approving the Concession Agreement between Gartner Restaurant Holdings LLC and the City of Stillwater, with the addition of the security /damage deposit as suggested by Mayor Harycki and with the condition that City Administrator Hansen review and approve the documentation regarding sales and if Mr. Hansen does not feel comfortable with the sales figure the agreement be brought back to the next Council meeting for further consideration. Page 6 of 14 City Council Meeting November 16, 2010 Councilmember Polehna suggested having the figures reviewed by Mayor Harycki along with City Administrator Hansen. Councilmember Roush spoke in favor of tabling the motion until the next Council meeting. Ayes: Councilmembers Cook, Gag, Polehna and Mayor Harycki Nays: Councilmember Roush Possible ordering of feasibility report for 2011 Street Improvement Project Public Works Director Sanders reviewed the proposed 2011 street improvement project; he noted the streets proposed to be included in the project were selected based on the most recent pavement management study. On a question by Mayor Harycki, Mr. Sanders stated there is a list of potential mill and overlay projects that could be added depending on the bids received. Mayor Harycki asked about the possibility of the addition of streetlights and sidewalks on Amundson; Mr. Sanders stated that the Comprehensive Plan shows sidewalk or trail on Amundson Drive, but stated that staff would suggest getting input at a neighborhood meeting before making a decision. Mr. Sanders stated that sidewalk, but not streetlights, would be included in the feasibility study and costs and input be brought back to the Council with the feasibility report. On a question by Councilmember Cook, Mr. Sanders explained a "complete street program," a program that is intended to accommodate all users on all roads, which is currently the subject of a state study. Councilmember Cook asked whether such a policy might be worth looking into; Mr. Sanders stated that staff could look into that. Mayor Harycki asked whether proposed projects are reviewed by the traffic committee; Mr. Sanders stated that that has not been done in the past, as reliance has been placed on input received at the neighborhood meetings. Mayor Harycki suggested the time for considering traffic calming measures and other issues is prior to street reconstructions; Councilmember Cook stated that the complete street program includes consideration of such issues. Motion by Councilmember Roush, seconded by Councilmember Polehna to adopt Resolution 2010 -177, Ordering Preparation of Report for 2011 Street Improvements (Project 2011 -02). Ayes: Councilmembers Cook, Gag, Polehna, Roush and Mayor Harycki Nays: None Parking Commission recommendation on rental of parking ramp spaces during the winter Community Development Director Turnblad reviewed the Parking Commission's recommendation to keep the parking ramp use in the winter as is — not allow private use of parking spaces. He stated that the Parking Commission was uncomfortable in opening up the use of the ramp to private residents during the winter until at least another season of use provides additional data. On a question by Councilmember Polehna, Mr. Turnblad responded that the question of providing additional spaces for residents of River Town Commons has been discussed by the Parking Commission on numerous occasion; he stated that the Commission has suggested possible reconfiguration of the River Town Commons private parking lot as Page 7 of 14 City Council Meeting November 16, 2010 an option and has also offered the use of the gravel parking lot for staff use. Council was in agreement with the Parking Commission's recommendation, and no action was taken. Possible approval of quotation for the Lily Lake Restrooms & Northland Park Warming House Improvements Public Works Director Sanders reviewed the bids for improvements to the Lily Lake restrooms and Northland Park warming house, with the low bids received from J.B. Contracting for both projects. He noted that funding would be coming from the Parks capital outlay fund. Motion by Councilmember Polehna, seconded by Councilmember Roush to adopt Resolution 2010 -178, accepting quotes and awarding contract for improvements to Lily Lake and Northland Park Facilities. Ayes: Councilmembers Cook, Gag, Polehna, Roush and Mayor Harycki Nays: None Possible approval to purchase DNR land Public Works Director Sanders noted that the DNR had auctioned off a portion of the Jackson Wildlife Management Area and subsequently sent a letter asking whether the City would be interested in purchasing a tract that had been split off from the property. He stated that the tract being offered to the City includes 3.4 acres along the eastern shoreline of the Jackson Wildlife Management Area; he stated that 1.6 acres is land area. He stated that the purchase price is $1, plus the deed tax and recording fee of $47.65. Motion by Councilmember Polehna, seconded by Councilmember Roush to adopt Resolution 2010 -179, authorizes the purchase of Tract B of the Jackson Wildlife Management Area from the Minnesota Department of Natural Resources. Ayes: Councilmembers Cook, Gag, Polehna, Roush and Mayor Harycki Nays: None Possible first reading of Ordinance 1022, an ordinance of the City of Stillwater amending the Stillwater City Code, to include Administrative Offenses Ost Reading) City Attorney Magnuson noted the Council had discussed options for enforcement of the sign ordinance in the downtown area. He stated that it was suggested that perhaps, rather than making violations a misdemeanor, it might be better to utilize administrative fines as a method of enforcement. He indicated that an added benefit of using administrative fines is that such revenue comes primarily to the City, rather than going to the state. He stated that the amendment is a simple one sentence addition to the ordinance adding violation of sign regulations as enforceable under the administrative citations. Councilmember Cook noted the intent was not to produce revenue but to decriminalize the offense and provide another enforcement option. Motion by Councilmember Gag, seconded by Councilmember Cook, to have the first reading of Ordinance 1022. Ayes: Councilmembers Cook, Gag, Polehna, Roush and Mayor Harycki Nays: None Page 8 of 14 City Council Meeting November 16, 2010 Possible first reading of Ordinance 1023, an ordinance of the City of Stillwater amending the Stillwater City Code Section 31 -1, Zoning Ordinance (1st Reading) City Attorney Magnuson stated that this amendment provides clarity to the language of the zoning code by changing the definition of "accessory use" to include both accessory buildings and accessory uses such as towers, windmills, etc. He indicated that this clarifies that height and other regulations apply to all structures, not just buildings. Motion by Councilmember Roush, seconded by Councilmember Gag, to approve the first reading of Ordinance 1023. Ayes: Councilmembers Cook, Gag, Polehna, Roush and Mayor Harycki Nays: None Possible rate increase for Sanitary Sewer City Administrator Hansen reviewed Finance Director Harrison's memo related to a possible increase in sanitary sewer rates. He indicated that the Metropolitan Council's charge to the City increases by about 3% each year, and the City has only raised rates one time in about the last 15 years. He noted that the 2009 financial audit recommended that the Council consider a rate increase to cover the deficit in the sanitary sewer fund. He reviewed the three options suggested by Ms. Harrison. He stated that both he and Ms. Harrison recommend option 2, which is a $1 increase in the quarterly base rate and $1 increase in the overage rate and which would have the most minimal impact on residents. Mr. Hansen pointed out the City has already been notified Met Council will be raising its rates by 3 %. Mayor Harycki questioned including depreciation in the amount of shortfall, referring to the impact of the proposed increase on a family of four; he suggested bringing this issue back in December with projections on what the Met Council's latest increase will do to the figures; Mr. Hansen stated that he would do that. No action was taken. Possible approval of proposal for services related to the Pedestrian Plaza Planner Pogge reviewed actions taken by staff subsequent to the Oct. 5 Council meeting, including an open house on Oct. 25. He reported that comments were generally favorable, with some critical comments received from property owners along the Commercial Street corridor. He indicated that staff is working to include those comments /concerns in the plan, and that what has been presented to date are concept plans only; he stated that staff will work with the individual property owners to make sure concerns are addressed as plans move from the concept to the design phase. He also stated access will remain open to the businesses during construction phase. He stated in addition to the open house, staff met with the IBA and CVB to discuss the project, as well as the Chamber and some event promoters; he stated that overall comments were very favorable. He reviewed the responses to the RFPs for services for the North Lowell Park plan and pedestrian plaza master plan and construction plans; he stated that staff reviewed the six responses and narrowed the list to the top three proposals and recommends the selection of Sanders Wacker Bergly team. He reviewed the reasons for the recommendation. Bill Sanders was present and introduced various members of the team; he spoke of the firm's previous experience with the City and the intent to be sensitive to concerns of local property owners. Page 9 of 14 City Council Meeting November 16, 2010 Mayor Harycki stated that he liked the concept of a pedestrian plaza but stated that he was not convinced this was the most crucial project for the City to do at this time; he stated that he thought the impetus for considering this was to do the North Lowell Park work in conjunction with the levee work. Community Development Director Turnblad noted the timing has to do with the levee design, as well as the Brown's Creek trail plans; he stated that there is the possibility the DNR can assist the City in finding grant monies and other funding sources to assist in constructing the restroom at the pedestrian plaza. Mayor Harycki asked about possibility of putting more effort into North Lowell Park but not have a finished product for the pedestrian plaza pending more information from the DNR. Mr. Turnblad responded that a meeting has been held with the DNR to discuss trails, the levee project, the amphitheatre and the pedestrian plaza and the DNR doesn't believe the projects will be in conflict but will complement each other. On a question by Mayor Harycki, Mr. Turnblad stated that projects can always be phased and staged. Mayor Harycki stated that he would not want to take off on a project without having all the feedback from the business community; Mr. Turnblad pointed out the contract under consideration is a planning contract, not a construction contract, and noted that the funding source expected to be used for this expires by the end of next year. Mr. Turnblad stated that staff believes all the planning can be done now; with everything constructed with the available revenue sources that will disappear if the City doesn't take advantage of them. City Administrator Hansen stated that the intent is to use TIF financing for a large portion of the project, some of which relate to the Stimulus Law changes of last year; he stated that staff is not considering special assessments to finance the project. City Attorney Magnuson pointed out that to utilize the financing source proposed, contracts would have to be let by the first of July 2011. Mayor Harycki stated that he was sold on the Lowell Park portion of the proposal, but expressed concerned about committing to the pedestrian plaza without knowing the cost or funding sources. On a question by Councilmember Polehna, Mr. Turnblad noted that the Lowell Park work, levee project and pedestrian plaza will all be tied together; Mr. Pogge reviewed the scope of the proposed contract — to develop a master plan for Lowell Park and the pedestrian plaza and how those elements tie together with the parking lot improvements and levee work being done by the Corps of Engineers, and development of more detailed plans to construction level. Councilmember Polehna pointed out a master plan has already been done for Lowell Park. Mr. Pogge stated the RFP called for looking at the existing plans and bringing them together in one unified document; he spoke of the necessity of bringing together the various elevations involved in the parking lot improvements, amphitheater and pedestrian plaza. Mr. Pogge stated that the intent is not to redo the Lowell Park plan. Councilmember Cook expressed concern about the financing and the potential costs; Mr. Pogge stated that final costs depend of details that will have be thought out and decided on in the planning process. Regarding funding sources, Mr. Pogge noted there is already money set aside for Lowell Park, along with TIF financing and the potential to transfer some funding from TIF districts for the remainder of the project. On a request by Councilmember Cook, Mr. Hansen reviewed the process of TIF funding; on a question by Mayor Harycki, Mr. Hansen stated property owners in the district would Page 10 of 14 City Council Meeting November 16, 2010 not see a tax increase because of the use of TIF, but could see a tax increase if the use of the TIF funds increased the valuation of their buildings /property. The owner of Larry's Floor Covering stated that he did not want his taxes to go up and stated that he thought his street looked great as it is. He stated that there are other options for connecting the parking ramp and the parks, rather than making the street (Commercial) a one -way street. He stated that he had been told previously that the street would be shut down for two months (during construction). He stated that the project would affect all the businesses on the street, would affect traffic not only on Commercial but on adjacent streets, as well as deliveries to surrounding businesses, such as Savories. He talked of other options for achieving the goal of getting people to the park, other than the proposed one -way street. Steve Genan, owner of the property at 210 N. Main St. and the property at 220 Commercial St., stated that improvements to Commercial as proposed would result in property tax increases that won't be offset by increases in revenue. He too talked of the use of the Commercial Street for commercial properties in the area. He stated that he would rather see the City spend money on cleaning up what it has now, rather than spend money to add more than it can't maintain. Christie O'Connor, co -owner of Larry's Floor Covering, who stated that she was speaking on behalf of other businesses in Stillwater, stated that taking away 26 parking spots in the parking lot behind the bookstore and the spots on Commercial Street would be a huge mistake and fiscally irresponsible. She stated that businesses on Main Street rely on that parking for their customers for ease and convenience of access. She suggested the money would be better spent along the river as that is what draws people to Stillwater, rather than spend the money on Commercial Street. She also stated that the proposal would make the traffic on Main Street worse and would discourage visitors and residents from coming downtown. She spoke of the business vacancy rate and suggested that it might go higher is this project is implemented. Margaret Cook, resident, stated that the Lowell Park portion of the project is fabulous, but stated that Commercial Street is important as it currently exists for the purpose it serves — to be a truck loading area. She also spoke of the current business vacancy rate in the downtown. She spoke of making the park improvements along the river a priority and leaving Commercial Street and the traffic flow alone. Mayor Harycki suggested a third option, constructing a permanent restroom and getting rid of the port-a- potties and cleaning up the area behind the gas station and tying that in to Lowell Park. Mr. Pogge stated that from a planning perspective, early plans identified the City as having a real issue with both physical and visual connections to the river, but stated that perhaps the focus could be narrowed to focus from Main Street to the park site. Mr. Pogge stated that plans presented to date have been to initiate a discussion, get feedback and address concerns /comments. Mayor Harycki stated that given the DNR's estimate that the City could have 300,000 bicyclists arrive in the City somewhere near the Valley Bookseller area, it makes sense to do something with a permanent restroom in that vicinity, with an information kiosk, and tying that to the parking ramp; he stated that he could see more emphasis on the area by the gas station and Valley Bookseller than Commercial Street. Mr. Pogge stated that that has been the intent -- to focus more on the pedestrian plaza feature between Main Street and Lowell Park. Page 11 of 14 City Council Meeting November 16, 2010 Councilmember Polehna suggested the misconception may be that the City definitely plans to implement the concept plans regarding Commercial Street. On a question by Councilmember Polehna, Mr. Pogge reviewed the components of the proposed contract: looking at the master plan for North Lowell Park and the pedestrian plaza and develop a unified plan for those, at a cost of about $14,800; boundary and topography survey related to the pedestrian plaza corridor; and development of construction plans and specifications for a project. Mr. Pogge stated that staff also included development of architectural plans for a restroom facility at a cost of $16,000 in the RFP; he stated that actual construction could be done in partnership with the DNR. Councilmember Cook asked whether improvements to South Lowell Park, discussed during the Council's retreat session, are a totally separate process. Public Works Director Sanders stated that there is specific money set aside for Lowell Park, $500,000, other money designated for the pedestrian plaza, $375,000, and the Corps of Engineers project, which will include grading of North Lowell Park and the amphitheater. Mr. Sanders stated that staff would recommend using some of the Lowell Park money to put in an irrigation system once the Corp does the grading in North Lowell Park. Plans for South Lowell Park, Mr. Sanders stated that it included installation of an irrigation system and reconstruction of the restroom there. Councilmember Cook stated that the comments she has been hearing suggest that perhaps the City doesn't need such grand plans and perhaps this should not be a priority project; she also suggested that previous plans didn't anticipate an economic downtown as has been experienced and stated that she doesn't see the City looking at things in that context again. City Attorney Magnuson spoke of the legislation that enables cities to use the TIF funding as proposed, an authority that expires in July of 2011, which is why this project is on the table at this time. Mayor Harycki stated that he understood the importance of tying the plans for the Corps' levee project to park elevations and the need for a restroom /information kiosk by the bookstore, but stated that he didn't think the Commercial Street plans were a priority. Councilmember Polehna spoke of the importance of planning for the future and the importance of having a plan in place should the DNR come in with a proposal for restrooms /trailhead. Councilmember Gag stated that from the discussion, it appears there is a shift in emphasis on the part of the Council and asked if there is a way to amend the proposed contract moving forward. Mr. Turnblad stated that numbers could be reworked by taking out any work related to the area west of Main Street, but stated that he didn't know if that would require going back to all six respondents to the RFPs; he stated that that could be brought back to the Council at its next meeting. Mr. Turnblad stated that staff could also provide a range of estimates for a project and funding sources. Mayor Harycki spoke in favor of scaling down the pedestrian plaza concept to include a restroom and visual corridor to the river, along with plans for the potential location of a trailhead and trail connection in the future. Councilmember Polehna spoke in favor on focusing on Lowell Park, with concept plans of how a plaza could connect to the park and where a bathroom and trailhead could be located in the future. Councilmember Roush stated that his only concern had been with Commercial Street west of Main and maintaining that as a business utility street. Page 12 of 14 City Council Meeting November 16, 2010 Mr. Turnblad asked for clarification as to whether the Council did or did not wish construction documents for any portion of a pedestrian plaza, as that would dramatically impact the scope of the RFP. Mr. Turnblad noted the DNR would not be putting in a trailhead in the middle of a downtown; he stated that there is a possibility it may assist the City in finding grant money for a restroom facility. Mayor Harycki stated that an estimate of the cost of the plaza is needed. Councilmember Cook stated that perhaps the Council is at the do -over point; Councilmember Gag suggested taking a step back. Mr. Turnblad stated that it appears the scope of the project needs to be re- examined; he stated that to be fair to the people submitting proposals, if the construction documents are eliminated, there might not be the interest shown to date. Mr. Turnblad also stated that if no TIF monies are involved, the City can take a bit more time because there will not be that deadline to consider. Councilmember Polehna stated that that the elevations need to be planned /designed so the projects can be tied together, but stated that he didn't think the actual buildings need to be designed at this point. Mr. Turnblad stated ground level improvements need to be designed so things done today don't have to be torn up later. Mr. Turnblad summed up the discussion as understanding the Council wants Commercial Street left alone other than being spruced up a bit and wants to do something between Main Street and the river; he stated that staff would look at options and determine whether proposals have to be sent out again. Possible approval of resolution authorizing the City participation in the St. Croix River Bridge Crossing Coalition Mayor Harycki stated that he thought it would be appropriate to give formal recognition of the City's intent to participate in the previously discussed St. Croix River Bridge Crossing Coalition and pay the associated fee. He stated that the fee is $300, $500 or $800, but stated that he thought it is $500. He stated that the Coalition is now in the process of incorporating. City Administrator Hansen stated the Council had previously passed a motion to authorize Councilmember Gag to get involved with the Coalition group as the group began to get organized; Councilmember Gag noted that when he decided not to run for re- election it was agreed Mayor Harycki would serve on the group. Mr. Hansen stated that this resolution would solidify the intent to join the Coalition and pay the membership fees. Motion by Councilmember Roush, seconded by Councilmember Polehna to adopt Resolution 2010 -180, authorizing the City participation in the St. Croix River Bridge Crossing Coalition and Payment of annual membership fee. Ayes: Councilmembers Cook, Gag, Polehna, Roush and Mayor Harycki Nays: None Possible approval of Property Management Contract Mayor Harycki noted this contract is for the two rental properties at the armory site. City Administrator Hansen suggested the City is ill- equipped to manage rental properties. As a result, he stated that he had conversations with several property management people and stated that he would recommend contracting with Judd Orff, who would receive one - half of the first month's rent and 5% of the gross monthly rent to cover ongoing Page 13 of 14 City Council Meeting November 16, 2010 management of the property; he stated that Attorney Magnuson would review the agreement/contract for services. Motion by Councilmember Polehna, seconded by Councilmember Gag to adopt Resolution 2010 -181, accepting quote for approval of property management contract. Aye: Councilmembers Cook, Gag, Polehna, Roush and Mayor Harycki Nays: None ADJOURNMENT Motion by Councilmember Polehna, seconded by Councilmember Gag, moved to rn at 10:25 p.m. All in favor _ Ken Mayor ATTEST: 1� U't',L &e_ti Larry D. ansen, Acting City Clerk Resolution 2010 -171, directing payment of bills Resolution 2010 -172, resolution approving State of Minnesota Joint Powers Agreement with the City of Stillwater on behalf of its City Attorney and Police Department Resolution 2010 -173, Approving Renewals of On -Sale, Off -Sale, Club, Wine, Sunday On -Sale, On -Sale 3.2 %, Off -Sale 3.2% Liquor Licenses and Tobacco Licenses For 2011 Resolution 2010 -174, resolution relating to financing of certain proposed projects to be undertaken by the city of Stillwater; establishing compliance with reimbursement bond regulations under the Internal Revenue Code Resolution 2010 -175, approving transfer of an On -Sale & Sunday liquor license to Rafters, LLC; DBA: Rafters, 317 Main Street S., Stillwater, MN. Resolution 2010 -176, approving the Concession Agreement between Gartner Restaurant Holdings LLC and the City of Stillwater Resolution 2010 -177, Ordering Preparation of Report for 2011 Street Improvements (Project 2011 -02 Resolution 2010 -178, accepting quotes and awarding contract for improvements to Lily Lake and Northland Park Facilities Resolution 2010 -179, authorizes the purchase of Tract B of the Jackson Wildlife Management Area from the Minnesota Department of Natural Resources Resolution 2010 -180, authorizing the City participation in the St. Croix River Bridge Crossing Coalition and Payment of annual membership fee Resolution 2010 -181, accepting quote for approval of property management contract Ordinance 1021, an Ordinance amending the Stillwater City Code Chapter 33, entitled Building Code by revising the safety barrier standards for swimming pools Page 14 of 14