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HomeMy WebLinkAbout2011-09-13 CC MIN4g*ga.le, .............. 0f Y.......1 CITY COUNCIL MINUTES September 13, 2011 REGULAR MEETING Mayor Harycki called the meeting to order at 4:35 p.m. 4:30 P.M. Present: Councilmembers Menikheim, Cook, Polehna, and Roush, and Mayor Harycki Staff present: City Administrator Hansen City Attorney Magnuson Finance Director Harrison Fire Chief Glaser Police Chief Gannaway Community Development Director Turnblad Public Works Director Sanders Admin Secretary Manos PLEDGE OF ALLEGIANCE Mayor Harycki led the Council and audience in the Pledge of Allegiance. APPROVAL OF MINUTES Motion by Councilmember Cook, seconded by Councilmember Polehna, to approve the minutes from the August 16, 2011, recessed meeting as revised and corrected. All in favor. OPEN FORUM Donald Epsom, 1206 2nd St N, indicated that he filed a complaint with the State Auditor. He presented concerns about what he termed the city's "financial recklessness" at a time when local government is diminishing, tax base has shrunk, the economy is in recession, and there is a lack of transparency over such issues as the armory and fire station, bridge coalition, a $1,500 no bid contract, TIF money, and the new bridge. Dorothy Jachim, 1624 McKusick Lane, expressed concern for the restoration of Lake McKusick. Thirteen years ago, Chuck Frederickson, now deceased, campaigned to preserve Lake McKusick. His wife's memories of the lake include an ice rink maintained by the city, swimming raft, sailing boats and a paddleboat. Ms. Jachim feels that preserving tranquility, fresh air and fresh water should trump steel and concrete projects, and that treasures should not be lost through neglect. Mayor Harycki responded that Public Works Director Sanders is looking at all three of Stillwater's lakes and will be presenting his findings shortly. Susanna Patterson, 1018 Olive St W, wondered why there is such a rush by Minnesotans to build a bridge that primarily benefits western Wisconsin and will take business away from City Council Meeting September 13, 2011 downtown Stillwater. She feels that the bridge is a symbol of our town, often used as a logo, and that the Wild & Scenic Rivers Act should apply to the St. Croix River. Mike Robinson, 801 Pine St W, complimented the council are doing "a heck of a job." Angela Anderson, 1121 4th St N, questioned why our mayor is traveling to Washington, D.C. for the third time and taking along another councilmember, suggesting that a written statement could have sufficed. She also questioned the unauthorized contribution to the bridge coalition, and does not support the proposed bridge or the asking of exemption from the Wild & Scenic Rivers Act. Glen Hill, 709 Linden St W, questioned the bridge and the Wild & Scenic Rivers Act, but his larger concern is about sustainable development plans for our community. He doesn't support a freeway style bridge and fails to see how it benefits our area, and also objects to the donation to the bridge coalition. He stated that the City needs solutions to the traffic problems in Stillwater, but doesn't feel that the bridge is the right solution. Andrew Jenks, 1209 2nd St N, reiterated that he doesn't think we need a freeway style bridge to support development in western Wisconsin, and would like to see an alternative that will better benefit Stillwater. Dana Jackson, 814 Everett St N, expressed her concern about two articles in the Star Tribune about the $80,000 given to the coalition to support a particular structure that citizens didn't vote for. The bridge we have is failing, as most people will agree, but what to replace it with is the concern. The public should be allowed to express its views and preferences. Jim McKinney, 410 Rice St W, stated his view that safety of the bridge is important, we need the highway department to determine what should be done to keep it safe, and he wonders if the cost of a new bridge is money well spent. If the bridge is in conflict with the Wild & Scenic Rivers Act, the Parks Service should be consulted. Mayor Harycki responded that the Parks Service said that there is nothing we can do to get their permission. City Attorney Magnuson stated that in the latest 7 -day analysis from September 2010, there were seven different issues presented prior to the judge's order, and the Federal Highway Administration would support a change in the law to exempt the project as the conflict cannot be resolved. Melanie Burt, 1924 1 st St N, does not feel that the City Council is representing most of the people she knows. She feels that they unjustly decided to spend a large sum of money on the bridge issue to undo an environmental protection rule, and that it is a conflict of interest. Jason Maddox, 1106 2nd St, said that $700 million for a bridge, with 9,000 commuters, divides out to $77,000 per commuter. An option he proposed before was running an interstate bridge from New Richmond to Hudson that would cost $50 million rather than $700 million. John Clemenacy, of 205 Chestnut St W, who can see the bridge from his home, watched 40 cars leave Minnesota via the bridge in 20 minutes. His congresswomen said that by 2030, there will be 30,000 per day going over the bridge. He questioned why -- Are they going to Page 2 of 9 City Council Meeting September 13, 2011 Wisconsin? Are we supporting sagging real estate development in Somerset? Why are we not maintaining the existing bridge instead? Suzanne Block, 1800 Heifort Ct, prior planning commissioner, expressed that her point of view on the bridge is one that stands for many of our community members: they would rather see no bridge than a freeway style bridge in Stillwater, as it will ruin our historic community. If people cannot easily commute from Wisconsin, they may move to Minnesota instead. STAFF REPORTS Police Chief Gannaway reported on a serious accident Friday evening just south of downtown. He noted that the vehicle, an Audi, was relatively intact for a 50 m.p.h. collision, but the occupants were badly injured because they were not wearing seatbelts. Mayor Harycki complimented Officer Wulfing and police dog, Buzz, who were at Stonebridge School yesterday, on being great ambassadors for the police department. Fire Chief Glaser reported that yesterday the DNR issued a press release implementing temporary burning restrictions that include Washington County, and are cancelling any burn permits already issued. Recreational fires are still permitted, but caution should be exercised. Community Development Director Turnblad announced that the building permit tracking system is now up and running, so if residents have a question, they can be referred to him and he can tell them who has reviewed the permit, why there is a delay (if there is), etc. Public Works Director Sanders received a call from MnDOT asking permission to do some night construction next week, making adjustments on the pedestrian signals at Main Street and Chestnut. Motion by Councilmember Roush, seconded by Councilmember Polehna, to approve Mn/DOT doing night construction on the pedestrian signals. All in favor. Public Works Director Sanders concluded that reconstruction on Wilkins is moving along; curbs should be installed September 14, and most of the sidewalk by Stonebridge was repaired before school started. City Attorney Magnuson reported that the $80,000 from the Coalition was returned to the City Administrator this afternoon; however this alone does not cure things with the State Auditor. He indicated that once a complaint is made with regard to the use of TIF funds, the money must be returned to the county auditor, and then the City gets back part of the money and the rest goes to the school district and the county. He suggested that it would be worthwhile for the City to respond to the auditor's complaint, to convince the Auditor that we are in compliance, and then we can retain the TIF money. Mr. Magnuson prepared a draft response, which he distributed at the meeting. He explained that TIF funding is a legal tool born out of the community development block grant policies of the 1950s where large tracts of land were demolished and new construction built. TIF was meant to promote new development where it might not otherwise take place. Because the money is designated as tax increment, it has to be used for specific purposes. Mr. Magnuson continued, the City's response is that Stillwater has what's called Tax Increment District Number 1, which is right in the center of that district is the downtown area Page 3 of 9 City Council Meeting September 13, 2011 where the bridge sits. He explained that one thing the City is permitted to do is "promote developments aimed at improving the physical facilities, quality of life and quality of transportation" within the district. City Attorney Magnuson then presented statistics of bridge use and traffic delay over a one -year period and that the conclusions are presented in the draft: He stated that the Historic Downtown is at the epicenter of traffic congestion caused by the Bridge in its present location. The Bridge rests on the middle of TIF District 1, Development District 1 which gives the City authority to promote development aimed at improving the physical facilities, quality of life and quality of transportation in the District. He continued by stating that the promotion 'of a new Bridge which will result in the closing of the Historic Bridge to traffic, will improve the physical facilities in the District, quality of life in the District and the quality of transportation in the District and under these circumstances the use of TIF funds from District No. 1 may be lawfully paid to Lobbyists hired to promote the construction of a new Bridge and the closing of the Historic Bridge to vehicular traffic. He stated that the conclusion is that by giving authority to promote, authority is given to secure the services of a promoter or advocate, i.e., a lobbyist, to promote a project. Councilmember Cook asked for confirmation that we have the authority of the auditors to speak publicly. Mr. Magnuson replied that that is correct. Councilmember Cook thought at the closed session that the Council came to a decision. Mr. Magnuson said he took the decision to mean that if we could do away with the objections by returning the $80,000, that would solve the complaint, and the answer is that it wouldn't. He stated that the City has right to respond to the Auditor's determination, and thus may not be penalized for a portion of the TIF money. Councilmember Cook thought everyone had agreed to accept the Auditor's finding, to respond that we were wrong and would pay back the money, even though we will get only part of the $80,000 back. Councilmember Mr. Roush stated that his position was that we disagree with the findings. Mayor Harycki said that with the new information, the letter does warrant a response in an effort to get the $80,000 TIF money back. He suggested that use of the word "lobbyist" be changed to "promoter" in the draft response. Councilmember Menikheim felt that we should admit we made a mistake and move on. Mr. Magnuson explained that paying these funds without a contract was the mistake; using TIF funds itself was not a mistake, and it doesn't hurt anything to issue a response. He continued, that it shows that the City acted in good faith and that the City has good argument and nothing in the Auditor's letter implied that we would not get the entire $80,000 back. Councilmember Polehna agreed that we have the right to respond and make an attempt to recover the money. Page 4of9 City Council Meeting September 13, 2011 Mayor Harycki suggested two courses of action: 1) disregard the response and admit we were wrong and deal with it; 2) send a response. He asked for clarification and direction for City Attorney Magnuson from the Council on which route to take. Councilmember Cook feels that the amount of the money is irrelevant. Mr. Magnuson responded that the use of this money under these circumstances to pay a lobbyist is permitted. The word "mistake" doesn't apply to the entire issue; it applies to not having a contract, not the transaction itself. Mayor Harycki feels we should send a response presenting the facts and findings from the City Attorney and once the response goes to the auditor, they make a final determination. He continued, by stating that so far they have sent "an initial notice" and that they don't yet have all the facts. He stated that the Auditor will then send a letter indicating their acceptance or rejection of the City's response and if there is a disagreement with their findings at that point, it would go to the State Attorney. Councilmember Menikheim said that he doesn't have a problem with using the TIF money as it was used, as long as it is done right, with an open contract. The Council represents Stillwater, not the river. A new bridge will allow the old bridge to be closed to vehicular traffic, but remain a part of Stillwater. Councilmember Polehna agreed. City Attorney Magnuson said that The Conach Group is willing to re -write the contract to comply with the auditor's objections. Mayor Harycki suggested that the response include an addendum regarding the contract. Councilmember Cook asked for clarification that we are not accepting the finding and are indicating the basis for our disagreement. The rest of the Council answered in the affirmative. Mayor Harycki asked for a consensus on the response. Motion by Mayor Harycki, seconded by Councilmember Roush, to send in a response regarding the TIF district, following our attorney's advice and analysis as presented in the draft, with modifications as recommended. Ayes: Councilmember Polehna, Menikheim, Roush, Mayor Harycki. Nays: Councilmember Cook City Attorney Magnuson will go over the draft, make changes as deemed necessary, and e- mail it to Councilmembers. He stated that the response is due by October 30. Mayor Harycki, on the issue of the contract, asked the City Attorney what he envisions this response should be. Page 5 of 9 City Council Meeting September 13, 2011 Mr. Magnuson responded that a letter should be sent appreciating the Auditor drawing this issue to the City's attention, that the City has sought and obtained return of the funds, that their advice is taken seriously, and that moving forward, the City will use best practices in the procurement and drafting of contracts that the City may with personal service vendors. He stated that the filing fee of $70 was returned along with the $80,000. Councilmember Cook asked that the Coalition stop using City Hall as their address. City Attorney Magnuson will take care of this. Ms. Cook also asked about the annual membership fees with the Coalition previously approved by the Council per Resolution #2010 -180, November 2010. Motion Councilmember Cook, seconded by Councilmember Roush, to rescind Resolution 2010- 180, Authorizing the City participation in the St. Croix River Bridge Crossing Coalition and payment of annual membership fee. Ayes: Councilmember Polehna, Cook, Menikheim, Roush, Mayor Harycki. Nays: None Council consensus was to direct the City Attorney to proceed with a response as outlined above, adding that the Coalition's address is changed from City Hall and that a copy will be given to Council before it is sent to the Auditor. Motion by Councilmember Menikheim, seconded by Councilmember Polehna, directing the City Attorney to proceed as directed. All in favor. CONSENT AGENDA 1. Resolution 2011 -129, directing payment of bills 2. Possible approval of use of Lily Lake tennis courts for sale of Christmas trees, Stillwater Elks Motion by Councilmember Roush, seconded by Councilmember Polehna, approving the consent agenda as presented. Ayes: Councilmembers Cook, Menikheim, Polehna, and Roush, and Mayor Harycki Nays: None PUBLIC HEARINGS There were no public hearings. UNFINISHED BUSINESS Possible approval of authorization to proceed with concept design work for the new fire station, which is planned to be attached to the new armory (continued from September 6 meeting). Community Development Director Turnblad informed the Council that City needs to decide by November 15, 2011 if it wishes to preserve the possibility of attaching a fire station to the armory and shares its program space and systems. He continued that November 15 is the date Page 6 of 9 City Council Meeting September 13, 2011 that the National Guard needs to submit its PPDC report to the State Designer Selection Board. He stated that if the city would like to preserve the possibility, then more fire station programming and feasibility work is necessary to assess fire station parking and access, space requirements, conceptual building design, building system needs construction and finish assemblies, space and system sharing with the armory, potential design_ and construction schedules, and an estimated budget. Mr. Turnblad stated that City Council recognized the need for the additional assessment work and affirmed this by approving a $20,000 line item in the 2012 fire department budget. He stated that staff presented a feasibility and programming proposal from Burns and McDonnell. He explained that since the firm conducted the programming design charette for the armory and knows the site and inter - related needs of the project, staff asked them to submit a proposal for the fire station work. He also informed the Council that Burns and McDonnell agreed to team with Collaborative Design, since they had completed work for the Fire Department on the potential fire station in the recent past, which would save the city money in background research. He explained that Burns and McDonnell together with Collaborative Design proposed to complete the work for $19,060. Council expressed an interest in an RFP process for competitive bids for the work so staff was directed to check with the National Guard to see if they could extend the city's decision deadline from November 15 to December 6 in order to accommodate the desired RFP process. Mr. Turnblad explained that the National Guard needs to hire a design consultant soon enough to make their next critical submittal date, which is June 1, 2012 which they must submit 35% complete design plans. Mr. Turnblad felt that maybe the National Guard may be able to wait until December 6, 2011 for the City's decision and that by Tuesday, September 13, the National Guard is expected to know with more certainty whether the City's decision deadline can be extended. Mr. Turnblad reviewed the RFP process and timeline process. He stated that since this is a feasibility design, it doesn't fall under construction publication guidelines. He continued that if the City goes out for competitive bids, Burns and McDonnell will submit a revised proposal based upon the RFP. Motion by Councilmember Polehna, seconded by Councilmember Menikheim to proceed with the RFP. Ayes: Councilmembers Cook, Menikheim, Polehna, and Roush, and Mayor Harycki Nays: None Possible Approval of 2011 Harvest Fest Community Development Director Turnblad reviewed this event and stated that Summer Tuesdays Inc. and the Stillwater Convention and Visitor's Bureau are sponsoring the 2011 Stillwater Harvest Fest, located in North Lowell Park and adjacent City parking lots, to be held October 7 & 8. He continued that it is being expanded this year from one to two days to allow the addition of new activities and that on Friday evening there will be a Street Dance with alcohol sales and on Saturday evening there will be a free beer and wine tasting. He stated that music for the Street Dance will be played from 4 to 11 PM and that the nuisance ordinance requires outdoor music to end at 10 p.m.; however, Council has the option of Page 7 of 9 City Council Meeting September 13, 2011 Page 8 of 9 waiving the time limit for events. He stated that in the downtown area, the Council's consideration of the waiver request does not need to be preceded by public notice. Mr. Turnblad stated that this special event will be by contract which allows the parking fees to be negotiated at a lower rate than established in the city's annual fee resolution and allows for responsibility clarification for the many elements of the event. He stated that all 46 parking spots in Lot #4 and 50 spots in Lot #5 will be reserved all day Friday and Saturday which will be posted for the event on Thursday evening. He explained if the entire lot is being reserved, it would be 50 parking spaces. Cory Buettner was present, and said that if Council objects to serving beer, that could be eliminated, but not having beer sales could affect attendance at the Street Dance and the revenue it will generate. Mr. Dougherty could do the beer tent on his deck, and then it would be private property. He also mentioned that the parking fee for Summer Tuesdays was $50 for each day the lots were used and asked that this event be treated in the same way rather than the $468. Councilmember Cook said that she felt that the 10 p.m. ending time for the music was reasonable and should not be extended to 11 p.m. Motion by Councilmember Cook, seconded by Councilmember Roush to adopt Resolution 2011- 131, Authorizing Harvest Fest, but not approve the noise variance. Ayes: Councilmembers Cook, Menikheim, and Roush Nays: Councilmember Polehna, Mayor Harycki Mr. Turnblad explained that if Mr. Dougherty has the beer tent on his private property, he already has a liquor license and would not need this temporary one unless his current license cannot be extended to the beer tent. Chief Gannaway will work with event sponsors about police coverage. Motion by Councilmember Cook, seconded by Councilmember Roush, approving the parking space fee of $468. All in favor. Motion by Councilmember Cook, seconded by Councilmember Roush, to amend the contract with Item 2a - liquor sales will be on private property, not public, and Item 5 – music must cease by 10 p.m. All in favor. Mr. Buettner brought up another issue that he has been working with the Sheriff’s Department of Washington County in regards to his water surface use application and the need for City Council approval. He was assured that #11 in the contract covers this. COMMUNICATION & REQUESTS Councilmember Polehna provided the Yellow Ribbon Update in which there will be a big picnic for military police at Washington Park on Saturday, and St. Paul Lutheran will do children’s activities. City Council Meeting September 13, 2011 • ADJOURNMENT Motion by Councilmember Polehna, seconded by Councilmember Roush, to adjourn at 6:54 p.m. All in favor. ecki, Mayor ATTEST: Ng • Larry D. Ha n, Acting City erk Resolution 2011-129, Directing Payment of Bills Resolution 2011-130, not used Resolution 2011-131, Approval of 2011 Harvest Fest • • Page 9 of 9