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HomeMy WebLinkAbout2012-01-31 CC MINae 4*.g r.... . r........ CITY COUNCIL MEETING MINUTES January 31, 2012 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 Police Chief Gannaway Public Works Director Sanders City Clerk Ward OTHER BUSINESS Browns Creek Trail & 3rd Street project — Washington County 4:30 P.M. Corey Schlagel, engineering and construction manager with Washington County, was present, along with County Commissioner Gary Kriesel, Wayne Sandberg, County Engineer, and Jacob Gave, project manager for the Third Street project. Mr. Gave reviewed the Third Street project, including the project purpose, construction phases, cost participation, public involvement and project schedule. He noted that Third Street is part of County Road 23 and must be able to accommodate trucks and commuter traffic. He indicated that this year's phase of the overall improvement project includes Third Street from Orleans to about 400' north of Willard Street and Chestnut Street from Third Street to Main Street. He added that the project includes narrowing the stretch of pavement on Third from Orleans to Willard from 44' to 40' to allow for a boulevard on the east side for snow storage, widening the 4' walk on the east side of the road to 5' to be consistent with Americans with Disability Act standards. He stated there will be bump -outs at Marsh, Churchill and Willard streets. He informed the Council that on Chestnut from Third to Main a mill and overlay will be done to address some rutting issues that are present and tide the pavement over until the future of the river crossing is clearer. On a question by Mayor Harycki regarding rain gardens on the project, Mr. Gave replied that they are looking at the possibility of incorporating rain gardens in the bump -outs. Regarding cost participation, Mr. Gave listed two items involved, according to the County's cost participation policy, the concrete walk and curb and gutter; and that cost estimate for the walk is $36,000 and about $29,000 for the curb and gutter, with the cost to be split 50 -50 by the County and City. Including factors such as traffic control and erosion control measures; City Council Meeting January 31, 2012 he continued the total cost for City participation is estimated at no more than $50,000 for this year's phase of the project. On a question by Mayor Harycki, Public Works Director Sanders stated the City's share of the project will be assessed to benefitting property owners on a 50 -50 basis. On a question by Councilmember Roush, Mr. Sanders answered that the project costs are comparable to the City's past cost experience for such a project. Regarding public involvement, Mr. Gave pointed out that the County will be hosting an open house to cover all four phases of the project, as well as one open house specifically for this year's phase. He added that there also will be a project web site with information, updates and contact information. He continued that this year's project schedule has advertising for bids scheduled for April, with bids awarded in May, an open house soon after the bid awards, and construction starting in June. Mayor Harycki suggested that the Church of St. Michael be contacted to see if there are any enhancements the Church would like done for the school crossing, etc. Councilmember Cook asked about the possible impact on the annual bike race and the fall art fair; Mr. Gave responded that he would check into that. Councilmember Polehna questioned the scheduling of the public hearing after the bid letting. Mr. Sanders responded that the City would be hosting a public hearing for those properties that will be assessed by the City prior to the bid award. Councilmember Polehna suggested the possibility of scheduling the mill and overlay work on Chestnut to coincide with the bridge closure so as to have less of an impact on traffic; Mr. Gave offered that he would investigate that possibility. Mr. Schlagel provided an update on the Brown's Creek trail project, specifically the crossing at Manning Avenue. He addressed the need for the crossing, bridge versus tunnel options, estimated cost and project schedule. Regarding the bridge versus tunnel options, he explained the major negative of a tunnel is water management, noting there is no way to drain water out of the tunnel as it would be about 15' below the existing roadway and the water would need to be pumped about 'h mile away. He also noted a tunnel would make it much more difficult to accommodate a future trail along the east side of Manning, something that is a potential project for the near future; he also noted a tunnel would require retaining walls, which adds to the expense of the project. He did note that a tunnel is less visible than a bridge, which is preferable to some folks. On a question by Councilmember Roush, Mr. Schlagel explained how a future trail on Manning would tie into a bridge or tunnel option. Mr. Schlagel indicated that the bridge is the recommended option both by the County and Department of Natural Resources; he provided photos of several bridge designs. He reviewed public involvement and project cost estimates, noting the County is seeking state bonds during this legislative session. He also reviewed a possible project schedule, with design beginning sometime this spring, and construction sometime in the summer of 2013. Kent Score of the Department of Natural Resources provided an update on the overall Brown's Creek trail project. He noted the state still does not own the trail corridor itself, he Page 2 of 14 City Council Meeting January 31, 2012 estimated final closing might take place in two or three weeks, which has delayed construction projects. He stated the first step after closing will be removal of the rail tracks and ties. He informed the Council that the design has started, the survey is essentially complete, and a contract for the geo- technical work is in place. Another first piece of actual development, he added, will be the retrofitting of the Highway 95 Bridge to accommodate pedestrian traffic which will likely begin this spring. He continued that the the proposal, at this point, is to begin construction downtown. With the limited funding resources that exist today, he continued, there is not enough funding to construct the entire trail and crossing at Manning Avenue. He stated that cost for constructing the 6 miles of trail with the bridge is estimated at about $3 million; and that there is about $1 million in funding currently available. On a question by Councilmember Cook, Mr. Score replied that public comment is always welcomed and encouraged; he noted there will be opportunities for public input at the community levels as the design moves forward. Councilmember Cook asked about mechanisms for protecting Brown's Creek; Mr. Score answered the bituminous surface of a trail and vegetating the side slopes, along with improvements planned by the Watershed District should be an improvement over the current condition. Councilmember Roush asked about using Engine 328 as part of the trailhead and Mr. Score answered that has been discussed, but the issue is the amount of property the state will be acquiring, which does provide enough space to do that. On a question by Councilmember Roush, Mr. Score indicated that he thought it unlikely that the state would participate in the cost of moving the engine to Stillwater for the trailhead. Lake Management Update Public Works Director Sanders gave a Power Point presentation on plant management for the City's lakes. He noted that last year there was an excessive bloom on Lake McKusick, a bloom of both algae and aquatic plants; the plants were primarily coontail and large leaf pond weed, both of which are native plants to the area. He explained that excessive plant growth generally occurs in shallow bodies of water that allows sunlight to penetrate through the water to the sediment, along with sediments that are rich in nutrients. He informed the Council that he had spoken with a water scientist with Blue Water Science who stated that last year was an unusual year when all of Minnesota lakes experienced excessive plant growth; the scientist also stated he did not think the blooms would be sustained in future years. Mr. Sanders' presentation spoke of the importance of plants to the aquatic environment and problems caused by excessive vegetation. The presentation outlined treatment options, including chemical treatments, harvesting, dredging, aeration and temporary lake drawdown, along with the DNR regulations, possible benefits /negative effects and cost associated with the various options. Mr. Sanders also outlined possible funding options, including increasing the storm water utility fee, possible use of the storm water utility fund, or creating a special taxing district, which is allowed by state statute. The presentation noted that the City's approach for the last several years has been to treat the source through installation of rain gardens, increased street sweeping and implementing its MS4 permit. Page 3 of 14 City Council Meeting January 31, 2012 Mr. Sanders suggested the City needs to consider its overall goal for its lakes, determine an appropriate funding level and funding options. He noted that the treatment options discussed are temporary and are on -going efforts. On a question by Councilmember Roush, Mr. Sanders answered that the scientists he has spoken with recommend to continue to treat the source; by that the harvesting of Long Lake and Lake McKusick in 2006 and 2007 seemed to work. Mayor Harycki indicated that he did not think chemical treatment was a good option, considering possible residual effects and impact on the St. Croix River; and that he would be interested in looking further into harvesting and a temporary drawdown and the approval process for that. Councilmember Roush expressed that he would be inclined to look at a one -two punch, both chemical treatment with systemic herbicide and harvesting. On a question by Councilmember Cook, Mr. Sanders replied that he has no estimate of how long it would take for the takes to improve if the City just continues to treat the source; he did say that the phosphorus levels in all the lakes are being reduced. Mayor Harycki suggested an open house for residents to get input on what potential options they might favor. Councilmember Polehna asked Mr. Sanders to look into past policy related to Lily Lake and allowing the homeowners to participate in the City contract for treating the lake. Mayor Harycki suggested that information be prepared as to possible cost to lake homeowners for the various options for an open house presentation. Mr. Sanders pointed out that he did not feel qualified to make a recommendation as to what might be best for a particular lake and asked if he might obtain the assistance of a consultant; and Mayor Harycki thought that would be permissible. Councilmember Menikheim asked whether the problem is the condition of the lake or one of aesthetics and whether there is a different approach to those problems. Councilmember Roush suggested there are multiple problems, originally one of clarity, which is improving, and also one of aesthetics. Councilmember Cook noted that Lake McKusick residents feel the City may have exacerbated any problems with the diversion project and therefore should bear more of the financial responsibility for looking at the problem; she suggested that an increase in the storm water utility fee might be a better funding source than a special taxing district. Councilmember Polehna pointed out that while water may have been diverted into Lake McKusick, water from the north is also being diverted away from the lake. STAFF REPORTS Community Development Director Turnblad reminded the Council and residents of the open house /public meeting regarding concept plans for the armory and fire station scheduled for Page 4 of 14 City Council Meeting January 31, 2012 February 1. He also reminded Councilmembers to get questions they would like asked in the conference call with Lanesboro people to him by tomorrow, February 1. City Attorney Magnuson told the Council he had prepared some draft contracts regarding lobbying services which he has forward to the lobbyist directly, and they have accepted the concept of contracting directly with the City rather than the bridge coalition. He noted previous problems were the result of using TIF money and giving the money to a non -profit rather than a lobbyist; there are no laws prohibiting contracting with a lobbyist, he explained. He pointed out that the question now is whether the Council wishes to retain a lobbyist and for how much. On a question by Councilmember Cook, Mr. Magnuson responded that the lobbyist would work directly for the City on the bridge legislation; the same people who have been working for the coalition would contract directly with the City to continue the work started for the coalition. Councilmember Cook expressed that she would still like some clarification on the status of the Conach contract as it is money the City is paying for a legislative consultant, not a lobbyist; she pointed out that person was supposed to be moving an agenda forward and look at broader issues, including funding for the state trail. Mr. Magnuson described that there is an existing contract with Conach that is cancelable by either party on 60 -day notice; he added that the contract has not been canceled and remains in effect until one party serves notice of cancellation. City Administrator Hansen informed the Council that he had contacted the person in question and asked for an indication of what he planned to do regarding the current contract; and that he had heard nothing regarding that request. Mayor Harycki spoke of the progress that has been made regarding the bridge as a result of the consultants' efforts. Councilmember Polehna thought it important to move ahead with the new bridge issues, but indicated that he would like some additional time before making a decision on the specifics of any contract. Mayor Harycki asked Mr. Magnuson to forward copies of the draft contract to Councilmembers. Councilmember Cook suggested considering other needs throughout the City and the momentum the coalition has regarding the new bridge, she does not want to spend taxpayer dollars for this lobbyist contract. It should be spent on alleviating the congestion in Stillwater, it is not a Stillwater Bridge, and it is an Oak Park Heights bridge. The meeting was recessed at 6 p.m. RECESSED MEETING 7:00 P.M. Mayor Harycki called the recessed meeting to order at 7 p.m. Present: Councilmembers Cook, Menikheim, Polehna, Roush and Mayor Harycki Page 5 of 14 City Council Meeting Staff present: City Administrator Hansen City Attorney Magnuson Community Development Director Turnblad Police Chief Gannaway Public Works Director Sanders City Clerk Ward PLEDGE OF ALLEGIANCE Mayor Harycki led the Council and audience in the Pledge of Allegiance. APPROVAL OF MINUTES January 31, 2012 Motion by Councilmember Menikheim, seconded by Councilmember Polehna to approve the January 17, 2012 regular meeting minutes. All in favor. PETITIONS, INDIVIDUALS, DELEGATIONS & COMMENDATIONS Proclamation: Jim Schug Day— Wednesday, February 1, 2012 Mayor Harycki read a proclamation designating Feb. 1, 2012, as Jim Schug Day in the City of Stillwater in recognition of Mr. Schug's many years of service as Washington County Administrator and Community Services Director. Mr. Schug, longtime resident of Stillwater, was present and expressed his appreciation for the cooperation of the City and staff over the years. OPEN FORUM Dorothy Joachim, 1624 McKusick Lane, expressed disappointment that she was unable to talk and ask questions during the afternoon presentation on lake management. She indicated that she was under the impression that the reason nothing could be done right away was that there was no budget for helping Lake McKusick. She informed the Council that she attended this year's budget meeting to be sure that something was included in the budget so something could be done. She pointed out that during the budget meetings, it was indicated this would not be a budgeted item, but rather would come out of storm water management fees. She explained has now been seven months and the City has gotten nowhere. She reiterated that she would like attention given to Lake McKusick as a recreational amenity, something it should be and has been in the past. She stated that she believes Lake McKusick is shallower and aging faster than it needs to; and thought the lake should be preserved for all the citizens of Stillwater. Mayor Harycki talked about the funding options the Council might consider, and noted the Council decided in the afternoon session to hold a public meeting with residents for input about what they might like done. There was discussion of the Wenck report that indicated the City could spend millions of dollars and still not correct the problem if the source of the phosphorus is not identified. He continued by stating that the improvement in the lake water quality is the result of rain gardens and additional street sweeping. Councilmember Polehna provided information about what the City, as a member of the Middle St. Croix Watershed District, has done /spent on efforts for Lake McKusick and Lily Page 6of14 City Council Meeting January 31, 2012 Lake; he suggested the vegetative growth is a problem created by improving the water quality. Mayor Harycki spoke about the Brown's Creek Watershed District's iron filter project to reduce phosphorus; he was confident the Council would decide on whether to proceed with efforts to improve the cosmetics of the lake before summer. Richard Kilty, 118 W. Oak St., asked about the armory /fire station project, whether the City would be running two fire stations and whether there would be permanent funding for the armory. Mayor Harycki responded that the City is proceeding with the assumption of having one fire station, due to staffing costs. Mr. Kilty suggested leaving the downtown station would be abandoning the downtown area and the original houses in town. Mayor Harycki explained the intent is to balance out response times to all parts of the City; he referred to the annual fire report and the previous fire station study regarding response times. Mr. Kilty asked whether the City has a written guarantee of permanent funding for the armory; and Mayor Harycki noted no property titles have been transferred to the National Guard, and that the concept designs have been funded by the National Guard. Mr. Kilty expressed that he could envision that the Guard would not get the money from Congress; and that the City would be remiss in not getting something in writing for the permanent funding for the armory. CONSENT AGENDA 1. Resolution 2012 -021, directing payment of bills 2. Possible approval of temporary liquor license — February 12, 2012 — Stillwater KC Hall, Inc. 3. Resolution 2012 -022, approving Cooperative Purchasing Agreement with the State of Minnesota (Administration) Motion by Councilmember Roush, seconded by Councilmember Polehna, to approve the Consent Agenda as presented. Ayes: Councilmembers Cook, Menikheim, Polehna, Roush and Mayor Harycki Nays: None PUBLIC HEARINGS Case No. DEM /2011 -55. This is the date and time for a public hearing to consider an appeal of the Heritage Preservation Commissions decision to deny a request for the demolition of a single family residence located at 2007 Schulenburg Alley in the RB, Two Family Residential District. Nathan and Sara Jespersen, applicant. Notices were mailed to affected property owners and published in the Stillwater Gazette on January 20, 2012. Community Development Director Turnblad reviewed the request, and noted that because the home in question was built in the 1880s, the Heritage Preservation Commission (HPC) must Page 7 of 14 City Council Meeting January 31, 2012 approve both the demolition permit and a design permit. He reported that the HPC reviewed the request and found the proposed design of the new home was not compatible with the neighborhood; he added that the HPC denied the design permit and without the design permit, the demolition permit couldn't be issued. He explained because of the denial, the applicants cannot reapply to the HPC for one year; and that the applicants have appealed the denial, not to completely overturn that action in favor of approval, but to change the action to denial without prejudice, which means the applicants could go back to the HPC without waiting for a year. He reported that staff recommends taking the action to deny without prejudice. Jeff Johnson, member of the HPC, reviewed the case, and noted that it was before the Commission several times. He described the original proposal and how the Commission worked with the applicants on several options to reduce the massing of the new structure. He reported the loss of an historic home at that site and replacing it with something that was inconsistent with the neighborhood was not acceptable to the HPC. On a question by Councilmember Roush, Mr. Johnson reviewed efforts in working with the applicant on various options, but the applicant came back with the same primary structure, and at that point it was denied. He added that he would not anticipate anything drastically different in design from the same applicant. Mr. Turnblad relayed that the city planner was of the belief that the applicant is looking at a completely new design that is more compatible with the neighborhood, thus the recommendation that the applicant be given the opportunity to try again. He informed Council that staff agrees with the HPC that if the intent is to bring back the same design, there is no point in asking because the answer will still be denial. Mr. Turnblad noted the Council will have to make a decision at this meeting whether to deny or deny without prejudice due to the 60 -day rule. Mayor Harycki opened the public hearing. Judy Foster, 2011 Schulenburg Alley, owner to the north of the property in question, stated she was also representing two other owners of properties on Schulenburg Alley, Hazel Winterlin and Tad and Alicia Engstrom. She provided photos of the neighborhood and noted the house in question was recommended for placement on the National Historic Register. She explained that three of five homes facing the St. Croix River are owned by the same person. She reviewed the history of the neighborhood consisting of homes built for the Schulenburg Mill owners for their workers; that the homes still have the original two -room structure, with additions; and that the homes can be renovated to be historically correct. She added that this decision would be a king -pin decision, a domino effect that will set the fate of the other homes facing the River; her hope is to keep the integrity of the neighborhood, noting the remaining 9 Schulenburg Mill homes were recommended for the National Historic Register. She agreed that the house in question has to come down for safety reasons, but there are designs that can respect the integrity of the neighborhood. She expressed that she would hope the applicants could come back with a design that is respectful to this historic neighborhood. Rick Swanson, property owner, explained that the applicant is not the owner of the property, that the applicants are just prospective buyers. He expressed that it appears this decision will restrict his property from having anyone else come in and go in a direction the HPC /City would appreciate. Attorney Magnuson noted he thought that was the reason behind the city Page 8of14 City Council Meeting January 31, 2012 planner's recommendation for denial without prejudice; he explained that a decision to deny outright would prevent reapplying for a permit for a year. There was discussion of the process involved in which an applicant does not have to be the owner of the property. Jeff Johnson explained that in this instance, the applicant, or potential purchaser, signed the application for the demolition permit, along with Mr. Swanson and his business partner; he added that Mr. Swanson attended at least one of the HPC meetings and was well aware of what was going on. Mr. Turnblad stated the City does not accept an application without the property owner's co- signature. Nathan Jesperson, original applicant, informed them that the HPC worked hard with him and his wife at design options. He stated that after several meetings, they have backed away from this lot because it was not quite what they wanted to do design -wise. He added that he has stayed with the process and the appeal because he doesn't want to leave the property owner hanging. He described that it was his understanding at one of the meetings that the HPC was about to approve the demolition permit, pending the design. He continued that the reason he was still involved was his surprise that the application was completely denied, with the one - year waiting period as a result. He wanted to be sure the property is not stuck in limbo for a year. Ms. Foster reported that neighbors are in favor of the demolition of the house and cleaning up the property. She agreed that Mr. Swanson should be able to bring in another buyer who might be sensitive to the design issues. Councilmember Cook asked whether the denial pertained only to this particular design; and Mr. Turnblad responded in the affirmative, but pointed out that because the property owner is co- applicant, the denial would still prevent any new application from being considered for a year. No other comments were received, and the hearing was closed. Motion by Councilmember Roush, seconded by Councilmember Cook to adopt Resolution 2012 -23, resolution adopting findings of fact, conclusions and order related to the denial of a demolition permit, without prejudice Ayes: Councilmembers Cook, Menikheim, Polehna, Roush and Mayor Harycki Nays: None UNFINISHED BUSINESS Discussion on City Hall chiller Rich Bornt, City IT technician, reviewed what has happened over the past few months regarding the issues with the chiller. He reported that in August, several different technicians visited and were able to band -aid the system to get it working again. He continued that Council approved a request to hire an HVAC mechanical engineering firm to help figure out what needs to be done to correct the problem; he stated that the City also had a sound engineering firm come out to do some studies. He informed Council that the engineering consultants have completed their studies and provided several options, which have also been reviewed by the sound engineering people. Page 9 of 14 City Council Meeting January 31, 2012 Lynne and George Bloom, Bloom Engineering, were present and described their studies and recommended options. Mr. Bloom described the existing chiller unit and stated that was nearing the end of its life expectancy. He described three replacement options which include placing a new unit in the same location on the roof or placing a unit at grade, which is more costly due to the need to re -pipe the equipment; he added that he believes a new unit can be placed on the roof, with less sound generation. Ryan Skoug, ESI Engineering, described the sound studies conducted this summer at five different locations. He found the existing chiller was meeting City code for DBA, but there was a tone that he believes has been bothering residents more than the overall sound level. He agreed with the recommendation to go with the quieter chiller on the roof. He reviewed the sound power data provided by the manufacturer of the chiller; and that the overall sound level of the two different units is about 9 decibels different. He stated in sound engineering a difference of 10 decibels is equated to two times quieter. He noted that the old style screw compressors are known to be noisier compressors and tonal, emitting a distinct tone that can be very bothersome; he stated that scroll compressors do not have that distinct tone. He indicated that the new quieter chiller should be below the ambient sound level at most of the measured locations. He also pointed out a new chiller should be of benefit to City Hall as the existing chiller is mounted directly to the building and those working in the upper levels can hear the chiller running; a new chiller could be installed on a vibration isolation curb that prevents vibrations from getting into the structure, and would reduce noise in the building itself. City Administrator Hansen explained that he asked for this presentation so the Council is aware that if it proceeds with this project, there will still be a certain amount of noise. He added that if the expectations of neighbors are that the noise will completely disappear, it will not meet those expectations — there will still be some noise. He also pointed out that the existing equipment is nearing the end of its life expectancy and will need to be replaced. On a question by Councilmember Cook, Mr. Skoug described different variables that can affect noise levels. Councilmember Cook inquired if he had done any studies related to noise levels if the unit was placed at grade. Mr. Skoug responded that he did not do any studies not only because of the cost, but because it would only benefit certain neighbors, not everybody. Mayor Harycki asked if there was anything additional the City could do to buy down the decibel levels, such as purchasing sound - deadening materials. Mr. Skoug answered that the new units are already wrapped in sound blankets; and that the only other option would be constructing a barrier, which would require hiring a structural engineer to determine loads, etc. John Ertle, 118 5th Street S, reported the noise is a distinct whine, not the usual air - conditioning fans. He added that they can tell exactly when the unit cycles on and off, and he it is somewhat weather dependent. He described the sound seems to be carried by the wind and humidity. He was convinced that the metal roof has some reflective ability; he suggested an acoustical engineer should consider the profile of the roof when a new unit is installed and perhaps use some dampening material or do something on the metal roof to reduce the reflectivity. Jim McKinney, 410 W. Rice St., agreed that some consideration should be given to the geometry of the roof and the way the sound bounces off the walls. He also agreed the whine Page 10 of 14 City Council Meeting January 31, 2012 is the most difficult part of the noise problem. He asked if there wasn't some mechanism for gradually going to full power. Mr. Bloom answered that the recommended unit has four compressors, with four stages, and all four will not come on at the same time. There was discussion of various other options for reducing /dampening the sound level. Mayor Harycki verified there is money in the capital budget to proceed with the purchase of a new unit. Mr. Bloom suggested that the City get price quotes and order the unit from the manufacturer directly and then obtain bids from a contractor for installation to shorten the turn- around time; he noted that obtaining bids from a contractor first may put the City into the cooling season. It was suggested that staff check to see whether such equipment is included in the state bid list. Motion by Councilmember Polehna, seconded by Councilmember Cook to approve Option 1 as presented and have staff contact the state to determine whether it is on the state bid list or contact the manufacturers directly and secure necessary quotes to comply with the competitive bidding law. Ayes: Councilmembers cook, Menikheim, Polehna, Roush and Mayor Harycki Nays: None NEW BUSINESS Possible approval of 2012 Street Improvement feasibility report and calling for hearing Assistant Engineer Kraftson reviewed the proposed 2012 street improvement project. He informed the Council that streets were selected on the conditions of the streets identified in the 2010 pavement management plan. Streets proposed for mill and overlay include Sixth Avenue from Orleans to Church, Churchill from Third Street to Sixth Avenue and Northwestern Avenue. Those scheduled for reconstruction include Third Street North from Myrtle to the dead end; Laurel Street; Harriet from Myrtle to Linden; Martha Street from Myrtle to Mulberry; Everett Street from Myrtle to Laurel; Rice Street from Everett to the east end; and Linden from Everett to Harriet. Mr. Kraftson described the sanitary sewer and water issues related to the project, including the replacement of 75 galvanized water services; new water main on Linden Street and Rice Street between Everett and Martha where multiple homes are fed off a small galvanized service. Mr. Kraftson noted that City policy is that new utility installations are assessed 100% to the homeowner; however the City will be asking the Water Board to pay for a portion, 50 %, of the new water main, but in discussions with the Water Department manager, it does not appear the Water Board will participate in the cost. He continued by stating that the project also will include new sewer main on Rice Street to the east of Harriet where there are two properties still on septic systems; sewer lining at several isolated locations; seal and repair manhole covers; repair of catch basins where necessary; and installation of three rain gardens and one larger infiltration basin. The project would also include new curb and gutter and replacement of sidewalk segments that are deficient Page 11 of 14 City Council Meeting January 31, 2012 Mr. Kraftson reviewed the proposed street widths, noting that most are similar to current widths; two streets, Everett and Martha, are proposed to be narrowed to 32' from 36. He reviewed the assessment policy, noting that policy is to assess 100% in the Industrial Park area, which would apply to the section of Northwestern Avenue. All other streets would be assessed 50% to capital projects fund and 50% to property owners. Replacement of galvanized water services and new sewer and water would be assessed 100% to the residents, he stated. There would be two different assessment rates: the front footage method for commercial and institutional properties and unit method for residential properties, he noted. He reviewed the proposed assessment rates and project budget. He noted the total estimated cost of the project is $2,103,000, within the budget of $2,143,000; $1,099,562 of the cost would be assessed, with $972,438 from capital projects fund. Councilmember Cook asked whether another public meeting should be scheduled, considering the size of the assessments to those properties with new sanitary sewer and new water main. Mr. Kraftson answered that additional public meetings are scheduled, and he reviewed the proposed project schedule. In discussion of costs, Mr. Kraftson reported that the unit assessments, $4,400, for the road reconstruction on this project are among the lowest in a number of years. Mr. Kraftson indicated that the request will be made to the Water Board to pay 50% of the cost of the new water main, but he noted there is no guarantee the Board will agree to do that. Councilmember Cook spoke of the difficult economic times in relation to the assessments, especially those with the new water /sewer mains. Motion by Councilmember Menikheim, seconded by Councilmember Polehna to adopt Resolution 2012 -24, resolution receiving report and calling hearing on 2012 Street Improvement Project (Project 2012 -02). Ayes: Councilmembers Cook, Menikheim, Polehna, Roush and Mayor Harycki Nays: None Possible approval of first reading of an ordinance amending Chapter 43 Liquor City Clerk Ward noted she had provided a copy of proposed changes to the liquor ordinance with justification for each of the proposed changes. She listed the changes address signage, investigation of an applicant, and removing the requirement for a public hearing for liquor licenses. Ms. Ward pointed out that the Council would still have to approve a liquor license, but a public hearing would not be required. She informed the Council that the proposed changes had been reviewed by Attorney Magnuson, Administrator Hansen and Police Chief Gannaway. Motion by Councilmember Roush, seconded by Councilmember Cook to approve the first reading of the ordinance amending Chapter 43, Liquor. Ayes: Councilmembers Cook, Menikheim, Polehna, Roush and Mayor Harycki Nays: None Page 12 of 14 City Council Meeting January 31, 2012 Possible approval to retain a Community Development Summer Intern Community Development Director reviewed the request for a summer intern, and stated there is an uncommitted $1,000 in the professional services budget available that could be used to offer a nominal salary. He explained there are a number of projects an intern could work on including the development of a commercial property database, development of a community guide, and researching aspects of trail planning, especially related to the Brown's Creek state trail. Motion by Councilmember Polehna, seconded by Councilmember Cook to approve the intern. All in favor. Update on RFP for fireworks City Administrator Hansen reported that RFPs were sent to six different companies and that the budget was set at $30,000; with a minimum show length of 20, not to exceed 30, minutes; the requirement for a draw sheet enumerating the number and size of shells; and submission of references and past experience. He stated that his recommendation would be RES Specialty Pyrotechnics, a company that has worked with the City many times before and that company also provided the best description of the type and size of shells. Mr. Hansen noted that the Parks Commission also recommended RES Specialty by unanimous vote. Mr. Hansen stated that technically the City still has a contract for fireworks, so he was not requesting formal action at this meeting. He indicated that he would like to be able to tell the company that, while the Council hasn't technically awarded the contract, RES is the choice. The Council took no action, indicating it would accept the City Administrator's recommendation. Possible approval of Chris Lauer appointment to Planning Commission City Clerk Ward stated one application was received for the open position on the Planning Commission, that the applicant was interviewed by the Commission chair, vice chair and Councilmember Menikheim, and that appointment is recommended. Councilmember Menikheim noted that the interview committee recommended that the applicant attend a one -day training session and have some orientation sessions with Mr. Turnblad and Planner Pogge. Motion by Councilmember Menikheim, seconded by Councilmember Polehna to adopt Resolution 2012 -025, appointing Chris Lauer to Planning Commission moved to approve Mr. Lauer's appointment. Ayes: Councilmembers Cook, Menikheim, Polehna, Roush and Mayor Harycki Nays: None Page 13 of 14 City Council Meeting January 31, 2012 COMMUNICATIONS/REQUESTS LMC Workshop Lessons Learned - This item was postponed due to the length of the meeting. COUNCIL REQUEST ITEMS Councilmember Cook informed the panel that she had met with Mr. Sanders and Mr. Moore regarding a possible use of the old basketball court at Staples Field. She reported that a group is interested in starting a community garden there and has distributed a pamphlet advertising a February 8th meeting explaining the proposal. She continued that depending on the interest, the proposal will be brought to the Parks Commission later in the month. ADJOURNMENT Motion by Councilmember Menikheim, seconded by Councilmember Roush to adjourn at 9:45 p.m. All in favor. ATTEST: t� qA44"Z-A"� Larry D. HanWn, Acting City Clerk Resolution 2012 -021, directing payment of bills Resolution 2012 -022, approving Cooperative Purchasing Agreement with the State of Minnesota (Administration) Resolution 2012 -023, resolution adopting findings of fact, conclusions and order related to the denial of a demolition permit, without prejudice Resolution 2012 -024, resolution receiving report and calling hearing on 2012 Street Improvement Project (Project 2012 -02) Resolution 2012 -025, appointing Chris Lauer to Planning Commission moved to approve Mr. Lauer's appointment Page 14 of 14