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HomeMy WebLinkAbout2011-12-06 CC MINA 0 9996 IY► .1Ui. ►L1i .[...VIII. ►.1. MINUTES CITY COUNCIL MEETING December 6, 2011 REGULAR MEETING Mayor Harycki called the meeting to order at 4:30 p.m. Present: Councilmembers Cook, Menikheim, 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 Planner Pogge City Clerk Ward OTHER BUSINESS Water Board Workshop 4:30 p.m. Adam Nyberg and George Vania were present representing the Water Board. Mr. Nyberg said one of the hot topics for the Water Board at the present time is a possible rate increase. He noted the sale of water has been decreasing due to either the weather or economy, so the Board's revenues are down substantially; he said it is difficult to control expenses due to the nature of the Board's functions. Councilmember Roush said he did not support a rate increase; and that he thought the Water Board should strive to keep rates low, rather than increase rates to keep in line with neighboring communities as was suggested at a Board meeting he had attended. Mr. Nyberg reported that the rate increase is necessary to support the Water Department's infrastructure. They researched rates of surrounding communities to make sure Stillwater is operating as efficiently as possible compared to surrounding communities, not to keep the rates the same as neighboring communities. He continued; that the study of other communities indicated that Stillwater was in line, and, in many cases, below rates charged by the other communities. Mayor Harycki asked about the amount of revenue expected to be generated by an increase. City Council Meeting December 6, 2011 Mr. Nyberg said over the past several years, revenue is down about $200,000; which meant the Board has had to dip into reserves to cover the decrease in revenue. Mr. Vania noted the Water Department also has been deferring important capital expenses in order to deal with the decrease in revenues; and that the department believes there is insufficient income to maintain the current infrastructure and equipment. He also spoke of the need for the Water Department to start predicting future needs and building that into the rate structure. Mayor Harycki spoke of possible cost savings /efficiencies to be achieved by the Water Department coordinating projects with the City's street repairs and other programs, such as the state gasoline bid. It was stated that the Water Department staff does work with City personnel on projects. Mr. Vania spoke of the need to expend some money to develop the capability of having real data regarding age of pipes and costs of repairs available in its system for predicting and prioritizing future projects. Councilmember Menikheim spoke of the need for the Water Department to raise revenues in order to do the things it needs to do; he said he didn't think cost savings would be enough to make up for the revenues needed for dealing with the infrastructure. In discussion, it was noted the Water Board does not need Council approval for a rate increase; the Board was coming to the Council with the information to let the Council know the Board had done its research. It was agreed to hold workshops on a semi- annual basis. City Trail Planning Planner Mike Pogge provided a presentation highlighting the City's trail system. He described the planned Brown's Creek Trail that will connect Stillwater with the Gateway Trail. He noted that the final acquisition for the Brown's Creek Trail is expected to be completed in 2012, with construction to the Gateway Trail connection likely not completed until 2013 -14. On a question by Mayor Harycki, Mr. Pogge said about 75,000 people are expected to use some part of the trail corridor. Mayor Harycki spoke of the importance to the local business community of getting the trail completed as soon as possible; Mr. Pogge said staff will be putting together a list of things the City has done in preparation for the trail to push with legislative leaders in an effort to get funding. Mike Campbell, legislative consultant, said this is expected to be a short legislative session and suggested it will be important for the City to focus on what it needs for completion of the trail. There was discussion about the projection of the number of users. Page 2 of 17 City Council Meeting December 6, 2011 Mr. Pogge said other issues related to the trail include trailhead amenities, such as restrooms near the trailhead downtown and at Brown's Creek Park; and that plans will be brought back to the Council as they are refined. Mayor Harycki inquired about the possibility of sidewalks on Neal Avenue to serve as a trail connection; Mr. Pogge said the City wants to be sure there are good trail connections for the local system to tie into the state trail and said there is an opportunity to apply for DNR grants to make the connections. Mr. Pogge described several other upcoming trail opportunities, including an opportunity to connect Stillwater with the Afton - Lakeland system and eventually to the Hastings- Prescott area. He said another possibility is a connection to the Wisconsin trail system going from St. Croix Falls to Superior, Wis. He said considering all the systems, Stillwater will be at the crossroads of 180 miles of trails that citizens will have access to and that visitors will utilize to come to Stillwater. Councilmember Roush asked about winter usage. Mr. Pogge noted that the Brown's Creek Trail will be a non - motorized trail so snowmobiles will not be allowed; he said snowmobiles are allowed on some portions of the other trail corridors. Councilmember Menikheim spoke of the urgency in moving on the associated issues and asked about the possibility of involving interested residents. Mr. Pogge said the City does need partners, both public and private. He said the City needs to work with the Legislature to get more funding to be sure the Brown's Creek Trail gets completed in a timely fashion as well as with two states, several counties and many communities to make sure the trail connections are made. Mr. Pogge said the City also needs to work with business owners, Chamber and CVB; and that staff would work with Council and others to forge the needed partnerships. Councilmember Cook spoke of the environmental impact and said there is some concern about the number of users in the Brown's Creek area; she said she wanted to be sure the City is ahead of the game on that issue as it would not take long to have a negative impact on a fragile eco- system. Mr. Pogge said that is an issue the City could raise with the DNR. He informed the Council that the DNR has been working with Brown's Creek Watershed District and another water resource group that is working on the plan to ensure that both environmental and historic artifacts are protected. Councilmember Roush asked if anything has been done regarding bringing Engine 328 back as part of the trailhead; he said he would contact the DNR regarding that issue. STAFF REPORTS Police Chief Gannaway said the local Toys for Tots drop -off boxes will be open until December 19. He told the Council that Washington County is going to a new records management system beginning in August and that he believes most of the City's costs are Page 3 of 17 City Council Meeting December 6, 2011 covered, but is still waiting to see what technology transfers and what doesn't. He also noted that included in this month's payment of bills is an $8,000 item for bullet -proof vests which this cost is covered by a grant from the Department of Justice. Councilmember Polehna asked about the status of sirens and whether the City is set for going to the narrow band; Chief Gannaway said Washington County will cover most of the cost, but said he is waiting on a second quote and said there are some issues involved if the City has to go to another vendor. He said he would provide an update when more information is available. Community Development Director Turnblad told the Council the youth programming at Teddy Bear Park and Washington Square, funded in the past by the Armstrong Foundation, is extremely popular. He said the Armstrongs have indicated they would like other funding sources so they are not footing the entire cost all the time. He informed the Council that staff successfully applied for, and received a grant from the Margaret Rivers Foundation to match the Armstrong's contribution. Mr. Turnblad noted the S is beginning the process of updating its building code and that the hot topics will likely include sprinklers in residential construction and green technology in the construction code. He said he would keep the Council informed as the process moves along. The meeting was recessed at 5:25 p.m. RECESSED MEETING Mayor Harycki called the recessed meeting to order at 7 p.m. Present: Councilmembers Cook, Menikheim, 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 Planner Pogge City Clerk Ward PLEDGE OF ALLEGIANCE Mayor Harycki led the Council and audience in the Pledge of Allegiance. 7:00 p.m. Councilmember Polehna asked that a moment of silence be observed in memory of Dick Moore. Page 4 of 17 City Council Meeting APPROVAL OF MINUTES December 6, 2011 Motion by Councilmember Cook, seconded by Councilmember Polehna to approve the regular meeting minutes of November 15, 2011. All in favor. PETITIONS, INDIVIDUALS, DELEGATIONS & COMMENDATIONS Proclamation recognizing Stillwater Cross Country team Mayor Harycki read a proclamation declaring Dec. 6, 2011, as Stillwater Area High School Boys Cross Country Team Day in Stillwater in recognition of the team's Class AA state championship, along with other accomplishments including a 10 place finish at the Nike nationals in Oregon. Coach Scott Christensen spoke of the team's efforts, including their academic achievements, and the experience at the national meet. Team members introduced themselves and listed one accomplishment /plans for the future. Councilmember Polehna commended Mr. Christensen's dedication and leadership to his team. OPEN FORUM No comments were received. CONSENT AGENDA 12. Resolution 2011 -172, directing payment of bills 13. Resolution 2011 -173, approval of 2012 parking ramp cleaning contract with St. Croix Boat & packet 14. Resolution 2011 -174, authorizing the City to purchase Tax Forfeited lands 15. Resolution 2011 -175, approval of release of temporary walkway easement between Main Street and Water Street Councilmember Cook asked about the temporary easement and the resolution of the legal action related to the area. City Attorney Magnuson explained that while there was public use, it was determined that there was not continuous maintenance of the property by the City for a period of six years, as required by law. Motion by Councilmember Cook, seconded by Councilmember Polehna to approve the Consent Agenda, as submitted. Ayes: Councilmembers Cook, Menikheim, Polehna, Roush and Mayor Harycki Nays: None Page 5 of 17 City Council Meeting NEW BUSINESS December 6, 2011 Review of draft Fire Station Space and Feasibility Study and possible approval of including the station with the armory's contract for completion of a 35% design Mayor Harycki moved this item due to the Colonel and others travel time. Randy Engel of Buetow & Associates Architects summarized the process utilized in conducting the study, noting it was a very intensive, extensive process. He said the study looked at the specifics of the existing station's operation, equipment, target area and previous studies /reports done on the location of a fire station. He said this study and the components in it are not a "wish list," but rather a needs list and additional needs that perhaps can be forestalled. Mr. Engel reviewed a conceptual layout, amenities, square footage. He said the study concluded that the proposed new fire station site and building can be accommodated on this site, adjacent to and physically linked to the new National Guard armory. Doug Wild of BWBR Architects reviewed the possible benefits /economies of sharing the site /spaces with the armory and that in site development alone there is about $372,000 that could be saved by sharing main curb cuts, entry drives and utility runs into the building. He said there are 6+ spaces that could be shared in the interior of the building, which result in a savings of needed square footage for the fire station; those savings, he said, could amount to about $1.4 million. He said the intent was to acknowledge the benefit of shared site /space but be somewhat conservative about the savings. On a question by Mayor Harycki, Mr. Wild enumerated specific items than could be shared, such as lobby area, physical fitness area, restrooms, showers, classrooms and locker space; he noted that some spaces such as a large commercial kitchen in the armory, which the public could have access to but would not need to be built by the fire station, were not included in the cost savings projections. Mr. Wild noted that in some cases only half of the square footage was figured in the cost savings projections due to the desire to be on the conservative side. He also cited some of the infrastructure spaces /costs that could be saved due to the co- location. On a request by Councilmember Roush, Mr. Wild explained the LEAD building standards, a program that measures a building's efficiency /sustainability, and that he would recommend building to the LEAD standard. Councilmember Cook asked how square- footage costs were determined and suggested that theoretically those costs could be less if the City were to build a stand -alone facility elsewhere. Councilmember Cook said she had heard that the cost - savings achieved by building to the LEAD standards take longer to realize than initially projected. Mr. Wild said some strategies have very quick paybacks. Community Development Director Turnblad informed the Council that the City is not obligated to build to any LEAD standard whether attached to the armory or not and stated that does not artificially drive up the square- footage costs. Page 6 of 17 City Council Meeting December 6, 2011 Councilmember Cook questioned the difference in the cost projections between Mr. Turnblad's memo and the consultant's report; Mr. Turnblad said his figure included only construction costs for the building, while the larger number includes total project costs. Mr. Engel said the $6.45 million for the building includes the two optional areas — the lower level blackout training area and attached equipment storage garage; he said project costs include furniture, equipment, fees, testing, etc. Councilmember Cook asked for a clarification of the projected savings and the total costs. Mr. Turnblad said the $5 million figure he cited is simply the cost of constructing the building without the two options; he said the $1.4 million in savings would still be applicable to that figure. Councilmember Cook pointed out the cost does not include the cost of land acquisition or any public amenities such as interior streets or public utility costs; which she suggests that offsets any savings that might be realized. There was discussion of other sites and previous cost estimates for a new station. Fire Chief Glaser noted that the previous estimate of $3.5 million, done in 2005, was a broad brush estimate, not based on a detailed needs analysis as this current study; Mr. Turnblad also pointed out the previous estimate was for construction cost only and was based on $150 per square foot, whereas this study is using a figure of $180, which is the current cost for construction. Councilmember Polehna asked how much might be saved by not following all of the LEAD standards. Mr. Engel reviewed some LEAD components, estimated payback times and savings to be realized in energy costs and maintenance; and that the City could construct a building eliminating some of the LEAD techniques /components, but suggested over the years, it would see higher costs in maintenance and repairs. Col. Jensen noted the National Guard is mandated to build to the LEAD silver standard; he said the issue would be if it is decided to tie in the buildings' mechanical systems and the Guard goes with a geo- thermal system, a decision that hasn't been made at this time. There was discussion as to how much the City cost could be reduced by eliminating the black -out space. Councilmember Roush said from attending the study meetings, he believes the Fire Department did a very good job of looking at its needs to get to the most efficient and cost - effective space that they can manage and yet have a facility to take into the next century. Col. Jensen provided a timeline to reach the 35% design submittal to the National Guard Bureau. He said a draft request for proposal has been prepared, pending the Council's decision, which he would like to send to the designer selection board, noting that the selection is done at the state level due to the size of the project. He said he would anticipate that a final selection would be made about the beginning of March, with the design process starting in early April to meet a June 1 submittal for 35% to the Guard Bureau. Page 7of17 City Council Meeting December 6, 2011 Mayor Harycki asked whether the City would have representation on the state design board if the decision is made to participate in the joint design. Col. Jensen explained that the Department of Military Affairs will have one vote on the board; and that it would be his intent to take the City's input into consideration, but at the end of the day, the Department of Military Affairs has just one vote. Councilmember Cook inquired about the cost of participating in the 35% design process; Mr. Engel said the fee is set by the state and ranges from 7 -9% of the construction cost, so it would likely be about $180,000. Councilmember Cook asked the City Administrator how the City could finance the $180,000. City Administrator Hansen explained that it initially could be done using reserves and repaid when bonds are issued for the actual construction. Mayor Harycki asked if the City could stop at the 35% design level; Mr. Turnblad responded in the affirmative. Councilmember Roush asked if the City could secure its own architect when the 35% level is reached; Col. Jensen said that might be possible but suggested it might not be advisable to change in mid - stream. Councilmember Cook noted that this decision will mean increasing property taxes; Finance Director Harrison said calculations for a 20 -year issue of a $6.5 million bond issue indicates taxes on a home valued at $200,000 would increase by $54.33, $150 on a home valued at $500,000. Councilmember Roush asked about the savings to a homeowner based on lower ISO (Insurance Service Organization) ratings; Fire Chief Glaser said that would be hard to accurately state, but a better rating should result in some savings to a homeowner. There was additional discussion regarding the current ISO rating, the factors considered in the rating, and the possible impact of an improved rating. Mayor Harycki later suggested that the possible savings in homeowner insurance due to the better ISO rating may offset any tax increase associated with construction of a new fire station. City Administrator Hansen cautioned that there is no guarantee what the ISO rating might be and pointed out that not all insurance companies honor ISO ratings. Councilmember Cook wondered if the City proceeds with the shared fire services whether the other communities might be willing to share in some of the costs. Councilmember Polehna suggested the possibility of charging other departments to use the training facilities in a new fire station to generate revenue to offset the cost. He also expressed concern about the estimated cost of the new facility as did Councilmember Cook earlier in the discussion referring to "sticker shock." Page 8 of 17 City Council Meeting December 6, 2011 Councilmember Cook suggested the possibility of keeping some services at the current location and scaling back the size of the new facility. Chief Glaser said the consultant was not asked to look at the scenario and the focus has been on a single- station model; he spoke of operational costs and staffing issues related to having more than one station. City Administrator Hansen outlined staffing issues related to multi - station deployment, noting that personnel costs make up 80% of the fire department's $1.2 million annual budget. Councilmember Polehna asked if there was some way to stage the project. Mr. Engel addressed a comment by Councilmember Polehna related to the size of the proposed service bay in the new facility; he suggested that the value of the vehicles the department owns is more than the cost of a new station which accounts for the proposed seven bays, as well as the need for a rapid response time to gain access to the vehicles. Mary Harycki suggested the question at hand is whether to proceed with the 35% design and address other issues, such as timing, later in the process. Councilmember Menikheim stated that the issue is one of life and death and questioned the Council's attempting to cut cost corners when this proposal is based on the opinion of experts; and felt this would be doing what is best for Stillwater in providing the highest level of safety. Councilmember Cook pointed out the Council is fiscally responsible for the City as well; and that the Council would not be being reckless or taking public safety responsibility lightly by not moving forward with this project. She pointed out that the 2005 fire study indicated the existing station is still usable and would be usable for a number of years. Councilmember Polehna said he was trying to be fiscally conservative but still has a responsibility to protect the residents of his Ward. Councilmember Roush said he agreed with the need for fiscal responsibility, noting that the City would be saving $1.4 million by building now and noting construction costs would not be going down in the future. Mayor Harycki noted if the Council agreed to move forward with the 35% design, it will have the opportunity to lower the costs. Motion by Councilmember Roush, seconded by Councilmember Menikheim to approve going forward with the 35% design with the National Guard. City Administrator Hansen pointed out that if the Council approves moving forward, it should do so with the understanding that the City will have to stick with the selected architect, even if the station is built five years from now. Councilmember Cook noted proceeding could cost the City as much as $180,000. Councilmember Roush pointed out it is in the 35% design phase when the Council could decide to add or subtract square footage. Page 9 of 17 City Council Meeting December 6, 2011 Ayes: Councilmembers Menikheim, Polehna, Roush and Mayor Harycki Nays: Councilmember Cook Councilmembers Roush and Polehna volunteered to be informally involved in the 35% design process. PUBLIC HEARINGS Case No. 2011 -27. This is the date and time for a public hearing to consider a request from Dale Shimek, McDonald's USA LLC, for a street vacation of Neal Avenue south of Orleans Street West and a final plat to create one new lot located at 2601 Orleans Street West in the BP -C, Business Park Commercial District. Notices were mailed to affected property owners and published in the Stillwater Gazette on November 25, 2011. Planner Pogge reviewed the site plan. He noted the street vacation meets all the requirements of state law and the new plat cleans up property descriptions. Mayor Harycki opened the public hearing. Eric Kellogg, project engineer, offered to answer any questions. No other comments were received, and the hearing was closed. Councilmember Cook stated the Heritage Preservation Commission had no issues of concern with this case. Motion by Councilmember Cook, seconded by Councilmember Polehna adopting Resolution 2011 -176, approving the final plat for Stillwater Marketplace North. Ayes: Councilmembers Cook, Menikheim, Polehna, Roush and Mayor Harycki Nays: None Motion by Councilmember Menikheim, seconded by Councilmember Roush to adopt Resolution 2011 -177, vacating part of Neal Avenue. Ayes: Councilmembers Cook, Menikheim, Polehna, Roush and Mayor Harycki Nays: None This is the date and time for a public hearing to consider the possible adoption of a spending plan for Stillwater TIF District #1 in compliance with Minn. Stat 469.176, Subd. 4m. Notice was published in the Stillwater Gazette on November 18, 2011. Mr. Pogge noted that TIF District #1 is scheduled to close on December. 31, 2011, after which time no additional property tax revenue would go into the District. He continued by saying that any remaining funds in the District can be used in accordance with the financing and spending plans that are in place at the end of the year. Once the District closes, he said, the City cannot make any amendments to the spending/financing plans. He noted new spending /financing plans have been developed that provide the Council with flexibility. He said currently there is an estimated $2.9 million that will be available at the end of the year in Page 10 of 17 City Council Meeting December 6, 2011 TIF District #1; that is after a transfer of $1 million to cover construction costs of the parking ramp and also excludes commitment made to the fagade improvement program and the pedestrian walkway. Mr. Pogge reviewed pertinent state legislation related to TIF funding and the ability to fund private development. In discussion it was noted the plan does not obligate the Council to fund any specific projects, but provides the City with flexibility and future options. Mayor Harycki opened the public hearing. No comments were received, and the hearing was closed. Councilmember Cook stated Mr. Turnblad and Mr. Pogge had briefed her on this item and explained that this does not commit the City to anything but keep options open. Motion by Councilmember Cook, seconded by Councilmember Roush to adopt Resolution 2011 -178, TIF District #1 Downtown Industrial Park Scattered Sites 469.176 Subd 4m Spending Plan. Ayes: Councilmembers Cook, Menikheim, Polehna, Roush and Mayor Harycki Nays: None UNFINISHED BUSINESS Truth in Taxation Public meeting City Administrator Hansen reviewed the services provided by the City, noting the majority of funding for the services comes from property taxes and user fees. He stated that until about 8 years ago, property taxes accounted for about 1/3 of what is spent, user fees 1/3 and local government aid 1/3. However, he pointed out, local government aid has essentially been eliminated and property taxes now account for 64% of local revenues. He provided a bar chart showing the impact of the loss of local government aid. He reviewed operating expenditures, noting that public safety accounts for 36% of what the City spends, Public Works 11 %, general government 24% and culture and recreation 29 %; he pointed out that the expenditures for culture and recreation are higher than what many cities spend because the City has its own library, as well as the St. Croix Recreation Center and Lily Lake arena. He provided a comparison of the proposed operating revenues /expenditures with 2011, as well as a comparison of the proposed levy with the 2011 levy. He noted the net tax levy proposed for 2012 is up $88,230,.87 of 1%. Mr. Hansen reviewed significant budget impacts, including the loss of local government aid along with the loss of homestead credit. He pointed out the City is still in a hiring freeze and a capital purchase freeze. He reviewed the significant additions /increases in the 2012 budget including $18,000 for legislative consultant services; $41,000 for the 2012 elections; 1 FTE secretary /dispatch for police, a position that had been eliminated but resulted in staffing issues; 1 FTE firefighter, another position that had been eliminated but is creating the need for overtime; and contributions to Community Thread and Youth Services Bureau. He stated Page 11 of 17 City Council Meeting December 6, 2011 the total additions to the budget amount to $229,510, but the levy is only increasing by $88,230 as other areas of the budget have been reduced. Mr. Hansen reviewed the property tax rates and comparison of those rates for the past 10 years. He explained that part of the reason for this year's tax rate of 54.611 is due to the state's change in market value homestead credit. Now, rather than a direct reduction in property taxes, the state exempts a portion of the value of the property, which in turn reduces the City's tax base causing the tax rate to go up. A video prepared by Minnesota Public Radio was played explaining the state's change from the homestead credit to the new homestead exclusion program and the impact on increasing local property taxes. Mr. Hansen offered to meet with any resident who has more specific questions about budget numbers. On a question by Councilmember Polehna, Mr. Hansen said the City has lost about $2.5 million in state aid over the past 5 years, an amount that gets shifted onto property taxes or is made up in reductions; he noted the City doesn't have a lot left to cut anymore. Mayor Harycki invited comments from the public. Mark Desch, owner of commercial property in downtown Stillwater, asked about a line item in the statement he received from the County related to the City's share of taxes in a TIF District. Mayor Harycki explained that is due to the expiration of TIF District 1 at the end of the year; the taxes will now go to the City and other taxing districts. Mr. Desch referred to the 7% increase in commercial property taxes. Tim Press, Orwell Court North, said his one concern is that the residents of Stillwater are now at the highest tax rate in at least the past 10 years due to diminished tax capacity, an economic atmosphere that he suggested is not likely to change in the near future. He urged the Council to continue to use due diligence to address that trend and try to keep the tax rate down. He asked whether debt service is increasing as a percentage of the total levy; it was noted that the City will be issuing a bond in 2012 for capital purchases. Mr. Press said the key issue for him is the trend in tax capacity and budgets. There was discussion of factors that impact the tax rate and the impact of other taxing districts. The resident of 1701 Johnson Drive complimented the Council on keeping the City's share of his property tax to a $45 increase. He spoke of an issue he has had with snowplowing as he is on the cusp of two different plowing routes; he said it now appears that has been fixed and said he hopes that continues. Motion by Councilmember Cook moved to amend the 2012 budget to drop the Conach Group, noting that a contract has not yet been received. Motion failed for lack of a second. Motion by Councilmember Roush, seconded by Councilmember Polehna to adopt Resolution 2011 -179, adopting the final budget and the commitment of certain revenue sources for the fiscal year 2012, as presented. Councilmember Roush asked if there will be a contract from the Conach Group; City Attorney Magnuson assured the Council that would be on the agenda for the next meeting. Page 12 of 17 City Council Meeting December 6, 2011 Ayes: Councilmember Menikheim, Polehna, Roush and Mayor Harycki Nays: Councilmember Cook Motion by Councilmember Polehna, seconded by Councilmember Menikheim to adopt Resolution 2011 -180, adopting the final tax levy for the fiscal year 2012. Ayes: Councilmembers Menikheim, Polehna, Roush and Mayor Harycki Nays: Councilmember Cook Possible approval of Ordinance 1042, an ordinance amendinp, the Stillwater city Code Chapter 31, Entitled Zoning Ordinance, by revising the section related to variances Community Development Director Turnblad stated nothing was changed in the proposal ordinance from the 1 St reading. Motion by Councilmember Cook, seconded by Councilmember Polehna to adopt Ordinance 1042, an ordinance amending the Stillwater city Code Chapter 31, Entitled Zoning Ordinance, by revising the section related to variances. Ayes: Councilmembers Cook, Menikheim, Polehna, Roush and Mayor Harycki Nays: None NEW BUSINESS Request from Paul Susko for a detachment from Stillwater and annexation to Stillwater Township Mr. Turnblad reviewed the request. He explained that the request involves two properties, both of which immediately abut Stillwater Township. He noted that neither property can be subdivided so the City would not be forfeiting tax revenue from future development. He stated the Township supports the request, only if the City agrees to the detachment. Councilmember Polehna wondered if this would be setting a precedent for other requests. Councilmember Cook referred to the Joint Annexation Agreement and wondered if this would be a step backward. Mayor Harycki noted there is very little likelihood of the City ever extending sanitary sewer /water services to these properties. Mr. Susko was present and reported that he was told by the Township that he would be paying $1,000 41,200 less in property taxes per year for essentially the same services he receives from the City. Mayor Harycki said he could see other requests coming from a nearby neighborhood. Page 13 of 17 City Council Meeting December 6, 2011 Mr. Susko said the Township has indicated it would not support requests from properties 2.5 acres and less and said the Township indicated the two properties in question meet the profile of a typical Township lot. Motion by Councilmember Roush, seconded by Councilmember Polehna to deny the request. In discussion, it was noted that the City does provide fire and police service, as well as the library to these properties. City Attorney Magnuson provided a history of the original City boundaries and how, overtime, detachments have occurred in this area, generally in difficult economic times. Councilmember Cook asked Mr. Susko why he is making the request at this time, having lived at this address for 15 years; he explained it was an accumulation of discussion over the years where people have pointed out that the property seems to belong in the Township, profile -wise. Mr. Susko said it comes down to paying more taxes and not really getting a commensurate benefit from that. Mr. Magnuson reviewed the provisions of the statute related to detachments, which states to be eligible for detachment; a property must abut the municipal boundary, be rural in character, and not developed for urban purposes. Councilmember Roush indicated that Mr. Susko knew the property was in the City when he purchased it. Councilmember Menikheim wondered how many other similar properties there might be and questioned what the City would be losing if it approved the request. Mr. Magnuson said there are very few, if any, similar properties; in discussion, it was noted the City would be losing $2,000 - $2,400 in taxes per year. Mr. Magnuson pointed out that the City could annex these properties in the future if it needed to do so. Ayes: Councilmembers Cook, Polehna and Roush Nays: Councilmember Menikheim and Mayor Harycki Request for approval of an amendment to the Tax Increment financing plan for TIF District #1 Motion by Mayor Harycki, seconded by Councilmember Menikheim to adopt Resolution 2011- 181, amending the budget for Tax Increment Financing District No. 1, Development District No. 1. Ayes; Councilmembers Cook, Menikheim, Polehna, Roush and Mayor Harycki Nays: None Page 14 of 17 City Council Meeting December 6, 2011 Request by Paul Nickerson for a resubdivision of platted property at 215 St. Croix Ave. W. Mr. Turnblad reviewed the request. He said the Planning Commission and staff recommend approval, but recognize the one difficulty will be providing sanitary sewer service to the new lot. He noted a condition of approval is that plans for providing sanitary sewer to the new building site be reviewed and approval by the City Engineer prior to the release of the final approvals. It was noted that this property is subject to the infill design review; Councilmember Cook asked that the owner be made aware of that requirement. Motion by Councilmember Roush, seconded by Councilmember Polehna to adopt Resolution 2011 -182, approving a resubdivision of property located at 215 St. Croix Avenue West, with the conditions of approval as listed in the staff report. Ayes: Councilmembers Cook, Menikheim, Polehna, Roush and Mayor Harycki Nays: None Request by Trinity Lutheran Church to waive plan review fee for first post office building Mr. Turnblad reviewed the request. On a question by Councilmember Cook, Mr. Turnblad noted the fee covers staff time spent in reviewing the previous plans for the first post office plans Motion by Councilmember Polehna, seconded by Councilmember Roush to deny the request. All in favor. Possible appointment to Human Rights Commission City Clerk Ward stated the applicant, Michael Robertson, had been interviewed by the Commission Chair and Councilmember Polehna, who recommend appointment. Motion by Councilmember Polehna, seconded by Councilmember Cook to adopt Resolution 2011 -183, appointing Mike Robertson to the Human Rights Commission. Ayes: Councilmembers Cook, Menikheim, Polehna, Roush and Mayor Harycki Nays: None Possible approval to purchase snow plows Public Works Director Sanders reviewed the request, pointing out the existing plows are light -duty plows which require considerable amount of maintenance and repairs. He noted the new plows are interchangeable and can be hooked up to any trucks. He stated the purchase wasn't in the department's capital outlay program but said there is funding available due to savings on other projects /purchases. City Administrator Hansen said he supported the request due to the interchangeability of the new equipment. Page 15 of 17 City Council Meeting December 6, 2011 Motion by Councilmember Polehna, seconded by Councilmember Menikheim to approve the purchase of the snowplows. All in favor. Downtown Beautification update Mr. Sanders provided an overview of the downtown beautification projects done in 2011 and those planned for 2012. Councilmember Cook thanked staff for their efforts in this area. Motion by Councilmember Cook, seconded by Councilmember Polehna to approve the 2012 Downtown Beautification plan. All in favor. COUNCIL REQUEST ITEMS Councilmember Cook suggested now would be a good time to start talking with people in Lanesboro about a presentation to the City regarding trail use, etc. She volunteered to contact people the Council would be interested in speaking with. Mayor Harycki suggested visiting Lanesboro. Mayor Harycki spoke of the condition of the old public works building near Lily Lake. Mr. Sanders said repairs to the siding are being done. ADJOURNMENT Motion by Councilmember Menikheim, second by Councilmember Cook to adjourn at 10:33 p.m. All in favor. ATTEST: Diane F. Ward, City Clerk Resolution 2011 -172, directing payment of bills Resolution 2011 -173, approval of 2012 parking ramp cleaning contract with St. Croix Boat & packet Resolution 2011 -174, authorizing the City to purchase Tax Forfeited lands Resolution 2011 -175, approval of release of temporary walkway easement between Main Resolution 2011 -176, approving the final plat for Stillwater Marketplace North Resolution 2011 -177, vacating part of Neal Avenue Resolution 2011 -178, TIF District #1 Downtown Industrial Park Scattered Sites 469.176 Subd 4m Spending Plan Page 16 of 17 City Council Meeting December 6, 2011 Resolution 2011 -179, adopting the final budget and the commitment of certain revenue sources for the fiscal year 2012 Resolution 2011 -180, adopting the final tax levy for the fiscal year 2012 Resolution 2011 -181, amending the budget for Tax Increment Financing District No. 1, Development District No. 1 Resolution 2011 -182, approving a resubdivision of property located at 215 St. Croix Avenue West Resolution 2011 -183, appointing Mike Robertson to the Human Rights Commission Ordinance 1042, an ordinance amending the Stillwater city Code Chapter 31, Entitled Zoning Ordinance, by revising the section related to variances Page 17 of 17