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HomeMy WebLinkAbout2012-06-05 CC MIN41wateir THE IIRTR E IA CE of IN INN EI /TA CITY COUNCIL MEETING MINUTES June 5, 2012 REGULAR MEETING 4:30 P.M. Mayor Harycki called the meeting to order at 4:30 p.m. Present: Councilmembers Polehna, Roush, Menikheim, and Mayor Harycki Councilmember Cook arrived at 4:40 p.m. Staff present: City Attorney Magnuson Community Development Director Turnblad Finance Director Harrison Fire Chief Glaser Police Chief Gannaway Public Works Director Sanders City Planner Pogge City Clerk Ward IT Tech Bornt OTHER BUSINESS Board of Water Commissioners Workshop Steve Speedling, Chair of the Water Department, introduced himself, as well as Robert Benson, manager of Water Department, and George Vania, Board member. He explained that the purpose of the workshop was to provide the Council with an update on the work of the Water Department since the last workshop. Mr. Speedling reported that there has been only a 1% response from the community to the rate increase introduced earlier this year. Councilmember Roush indicated that he has heard from several residents and he remains opposed to the rate increase. Mr. Speedling invited the Council to bring any issues to the department for discussion. He reminded the Council that a study was done prior to the rate increase. Mr. Speedling offered that the Water Department is looking at connecting with City Hall for future sharing of data. Mr. Benson explained that the Water Department and the City are working together to coordinate Water Department access to the GIS system that the City currently has in place. Mr. Speedling pointed out that right now, through the GIS system, public works staff can see manholes, mains and valves, but cannot access the attribute data for the hydrants, valves and services, or initiate work orders associated with the pipe segments. He added that the goal is for City Council Meeting June 5, 2012 staff to be able to view a map and see what has occurred in any segment in the City. The Water Department will be responsible for making any changes and the system will be "read only" for anybody else. The work order system will be developed in 2013. Mr. Benson informed that the Water Department is also looking at a meter change -out program. TKDA is currently doing a feasibility study. Most meters are now 20+ yrs old. The typical lifespan is 20 -25 yrs. Due to current regulations, the meters cannot contain any lead in the brass, narrowing down the choice of meter suppliers. Mr. Speedling presented a resolution that the Water Board approved regarding street improvements. He stated that some areas of the City have private service lines for which the home owner is responsible. The Board agreed to split cost of water mains 50150 with residents undergoing street reconstruction, for example, Linden Street. Councilmember Roush asked if there is a remedy if the main is damaged by the City or the Water Department. Mr. Benson answered that once the main is installed, the Water Department takes care of it 100 %. Mr. Benson noted that the Water Department has always worked with the City in eliminating galvanized services impacted by street improvement projects. Another project underway is Millbrook Addition. He continued that earlier this year the Water Department completed a rehab at Well No. 6 and there was a chlorine leak. The department is in the process of replacing valves. Councilmember Menikheim mentioned that he has attended Water Board meetings and is impressed. Mayor Harycki brought up that the City is spending over 50 cents to send a utility bill to residents. He asked if the City and the Water Board could eliminate some of that overlap in mailing costs which could potentially save $3,000 a quarter by combining mailings. Mr. Benson and Mr. Speedling responded that the Water Department would be happy to look at that. Councilmember Polehna spoke of a problem with mowing grass around the pump station at Benson Park, and Mr. Benson remarked that it has been addressed. Request for TIF assistance from HAF Group for new building at 229 Main St. S. City Planner Pogge introduced the application of the HAF Group for Tax Increment Financing Assistance. He stated the first floor of the building, to be called the Peaslee Building, will be used for restaurant and retail, and the second floor will be used for office space. The building design has been reviewed by the Heritage Preservation Commission and the Planning Commission. The total square footage is approximately 3,120 square feet. City Planner Pogge described that this request is due to two conditions: poor soil conditions and additional flood proofing necessary due to the property being in the St. Croix River floodplain. These issues add approximately $170,000 of cost. He added that total project costs are over $1 million. According to State Statute, this project is eligible for about $173,000 in TIF assistance. The request is for $150,000 TIF assistance. City policy allows assistance in the amount of 50% of the increased tax revenue over a five year period. This building would see about $20,900 annually of additional tax revenues which equates to approximately $52,250 in TIF assistance. While the request exceeds that, City staff believes site conditions and the City's desire to see a two story building rather than a one story building dictates a recommendation for approval. Page 2 of 11 City Council Meeting June 5, 2012 Mayor Harycki inquired if the extra cost comes from the weight of the second story. Michael G. Hoefler, principal for HAF Group, responded yes. He reviewed the changes in plans since the poor soil conditions were discovered. Additionally, construction will significantly match the building that had been there before it burned down around 1951. The poor soil conditions added items which added an immense amount of cost. Mayor Harycki voiced that he likes the fact that the fagade looks like it fits into the area. City Planner Pogge asserted that normally a retail office building is allowed up to 50% of the increased tax revenue over a five year period, so this project would warrant $50,000 of TIF assistance, but the applicant is requesting $150,000. It would require about 7.5 years to pay back. Councilmember Menikheim reiterated that the project appears to fit beautifully, but asked if this the best use of our TIF funds and the benefit to the City. City Planner Pogge replied that it brings an under - utilized property back onto the tax rolls. Councilmember Menikheim commented that a one story project would also accomplish that. City Attorney Magnuson noted an approach suggested by City Administrator Hansen was to look at how much of the project could be financed by a bank and what the shortfall if any would be. He continued that the main floor is to rent at $14 per square foot, the upper floor at $11 for total of $50,000 of rental which supports a maximum loan of $400,000, so the shortfall on the project is $345,000. This much of the owner's equity will have to go into the project to make it feasible. City Planner Pogge mentioned that the funds to be used would be from TIF District 1. On a question from Councilmember Roush about the cost of the land versus construction costs and why the property owner spent $1 million to get a building worth $600,000. Mr. Hoefler responded that HAF Group is the architect and developer and intends to locate its own offices in the structure. They have wanted to move to downtown Stillwater for many years, have been in business since 1992, and have high paying jobs. The firm is currently housed in temporary space on Chestnut Street. He conveyed that the company has a lot of emotional buy -in in the project. Mayor Harycki commented that the plaza is nice but has no economic value, and that he wants to review the City's plans for TIF District 1 which were crafted last fall. City Planner Pogge provided that there is about $3 million in the TIF district today. The fagade program has allocated about $300,000. Councilmember Cook inquired if there would be other projects competing for this TIF money, and City Attorney Magnuson listed other possible uses for the TIF funds are: fagade programs, perhaps entrances on both ends of the City, possibly walkways and trail connections. He continued that a building of this size and scope will generally increase the tax base for the foreseeable future, and added that TIF was designed to spur development on under- utilized sites. Councilmember Roush pointed out that the project isn't bringing in entirely new money to the City, because the firm's employees are already working here in Stillwater. Mayor Harycki asked how the TIF payments would be administered, and Mr. Magnuson presented various options. Page 3 of 11 City Council Meeting June 5, 2012 Mr. Hoefler stated that he envisioned the money could be paid over 5 months in increments to pay the subcontractors. Councilmember Polehna reminded the Council that the City has been trying to find a location for dumpsters downtown, and suggested perhaps this project might incorporate that. Mr. Hoefler replied that a trash enclosure is planned for the project but it may not be able to be enlarged. City Planner Pogge indicated that the City has been discussing different options for trash enclosures with a few property owners. The issue is that no one wants it behind their building. Motion by Councilmember Menikheim, seconded by Mayor Harycki, to direct staff to proceed with drafting the development agreement with up front TIF assistance in the amount of $150,000. Councilmember Cook expressed that she doesn't feel comfortable voting on this project yet. She asked how the applicant was made aware of the possibility of TIF funding. City Planner Pogge implied that staff made the applicant aware when the one story project was proposed, because the one story design didn't seem to fit with the area. Councilmember Roush voiced that he loves the project, but sees a big difference between giving developers money and loaning them money. Councilmember Polehna pointed out that the building will be there to provide increased tax revenues over many years. Councilmember Cook asked how the City could be sure the fagade would look as proposed, and Mr. Hoefler responded that the firm has done many other successful projects in Stillwater. Ayes: Councilmembers Cook, Menikheim, Polehna, and Mayor Harycki Nays: Councilmember Roush STAFF REPORTS Police Chief John Gannaway reported that when the department staffed the temporary levee, there was only one incident. Fire Chief Stu Glaser relayed that the City has received an invitation from the East Metro Public Safety Training Center to its groundbreaking ceremony Thursday, June 14th, at Hwy 120 and Hwy 5 in Maplewood. He also informed the Council that the SCBA Maze Trailer, part of the department's annual training for self - contained breathing apparatus, is on site. He invited Councilmembers to visit the trailer to see what it's like to be in a confined space with an air tank on. City Clerk Diane Ward updated the Council on candidate filings which closed at 5 pm June 5. Candidates are: Ward 2: Cassie McLemore, Ted Kozlowski, Adam Frederick, Tom Corbett Ward 3: Councilmember Roush and Tom Weidner Community Development Director Turnblad mentioned the dirt in various places downtown is part of the pedestrian walkway project. City Planner Pogge submitted that construction is going well with the public bathrooms, expected to be done by June 29. Some traffic redirection will be involved. Page 4 of 11 City Council Meeting June 5, 2012 On a question by Councilmember Polehna if Kolliner Park will be out from underwater by July 4th, Public Works Director Sanders responded that the river level has dropped four feet, and the City shouldn't have to re- grade. IT Tech Bornt gave the Council an update on the new chiller. The unit that was previously recommended is quiet but there are some other units out there that are even quieter. The information was sent to the sound engineer to verify the specifications. Staff has found a different unit 4 -5 decibels quieter than the recommended unit, also is a few thousand dollars cheaper. He offered that it appears the City can move forward with this model. It will take approximately 8 weeks for delivery, and it will take 2 -3 weeks to replace the unit. Councilmember Cook expressed appreciation for staff communication with residents on this issue. Councilmember Menikheim suggested sending a copy of the replacement plan with scheduled dates of work to concerned neighbors. The meeting was recessed at 5:50 p.m. RECESSED MEETING 7:00 P.M. Mayor Harycki called the recessed meeting to order at 7:03 p.m. Present: Councilmembers Menikheim, Polehna, Roush, Cook, and Mayor Harycki Staff. City Attorney Magnuson Police Chief Gannaway Fire Chief Glaser Community Development Director Turnblad Public Works Director Sanders City Attorney Magnuson Finance Director Harrison City Clerk Ward PLEDGE OF ALLEGIANCE Mayor Harycki led the Council and audience in the Pledge of Allegiance. APPROVAL OF MINUTES Motion by Councilmember Menikheim, seconded by Councilmember Polehna, to approve the May 11, 2012 special retreat minutes and the May 15, 2012 regular meeting minutes. All in favor. PETITIONS, INDIVIDUALS, DELEGATIONS & COMMENDATIONS Fire Chief Glaser presented a plaque to be given to Assistant Chief John Buckley, who is retiring after 31 years. Mr. Buckley was unable to attend the meeting, however, Fire Chief Glaser informed the Council of Mr. Buckley's many contributions to the department. OPEN FORUM Page 5 of 11 City Council Meeting June 5, 2012 Karin Housley, president of the Stillwater Chapter of Let's Go Fishing, a nonprofit, informed the Council the organization is offering free fishing and boating excursions to athletes of the Special Olympics which is scheduled to be in Stillwater June 21 -23. She requested that the City provide 12 parking spaces in the City's south lot for three days for parking for the athletes at no cost. There was Council discussion on other possible parking locations. Motion by Mayor Harycki, seconded by Councilmember Polehna, to direct staff to work with the organization on the best location for the parking. All in favor. Ms. Housley also announced she is running for State Senate. Amy McKee, 601 Fourth Street South, addressed the Council on her ownership of chickens which she discovered is against City ordinance. She is working with a number of other residents who raise chickens to get the ordinance changed. Community Development Director Turnblad relayed there has been no application yet for an ordinance amendment which costs $500. Councilmember Polehna expressed concern that the issue could grow to include other farm animals such as horses, goats, or pigs. Councilmember Roush pointed out there are areas of the City where chickens would definitely be unacceptable, and the Council is required to enforce ordinances that include the entire City. Ms. McKee stated that other cities have ordinances regarding number and care of the chickens. Her children consider the chickens as pets. Councilmember Menikheim proposed that until the chickens become a problem, the City shouldn't worry about it. The Council shouldn't get in the residents' way. Councilmember Cook noted that changing an ordinance takes a lot of staff time and work, justifying the $500 application fee. She believes the group is close to raising the $500 application fee. She would favor directing staff to work with the group if they apply for the ordinance change through normal channels. Councilmember Roush asked Mr. Magnuson if chickens could be allowed in some parts of the City but not others, and he indicated that raising chickens seems to be an urban phenomenon and staff could look at ways that other cities regulate chickens. Chief Gannaway offered that his department can continue to advise the Council when there is a complaint about existing chickens. Motion by Mayor Harycki, seconded by Councilmember Cook, to direct staff to suspend enforcement of the existing ordinance for 90 days pending looking at a possible amendment. Ayes: Councilmembers Cook, Menikheim and Mayor Harycki Nays: Councilmembers Roush and Polehna CONSENT AGENDA Resolution 2012 -089, Directing payment of bills Resolution 2012 -090, Approving Change Order #1 Main Street Pedestrian Walkway Public Restroom Resolution 2012 -091, Approving Change Order #4 Main Street Pedestrian Walkway Public Restroom Approval of North Lowell Park power pole relocation Page 6 of 11 City Council Meeting June 5, 2012 Motion by Councilmember Polehna, seconded by Councilmember Roush, the approve the Consent Agenda as presented. Ayes: Councilmembers Menikheim, Polehna, Roush, Cook, and Mayor Harycki Nays: None PUBLIC HEARINGS Case 2012 -15. This is the date and time for a public hearing to consider a request from Paul Larson for a variance to the impervious surface requirements for an addition and second floor to the garage and adding a second floor to main house located at 106 Lakeside Drive in the RB Two - Family Residential District, and any variances related thereto Notices were mailed to affected property owners and published in the Stillwater Gazette on May 25 2012 Community Development Director Turnblad explained this case was approved by the Planning Commission with one condition: that Mr. Larson have a stormwater mitigation plan approved by the City engineer and the DNR. The City is still waiting for that plan and approval. He recommended the item be continued. Mayor Harycki opened the public hearing. Motion by Councilmember Cook seconded by Councilmember Polehna, to continue the hearing. Ayes: Councilmembers Menikheim, Polehna, Cook, Roush and Mayor Harycki Nays: None Mayor Harycki closed the public hearing. Case 2012 -17. This is the date and time for a public hearing to consider a request from HAF Architects for a flood fringe conditional use permit for the construction of a two -story building at 229 Main Street South in the CBD Central Business District. Notices were mailed to affected property owners and published in the Stillwater Gazette on May 25 2012 Community Development Director Turnblad presented that HAF is proposing to construct a two -story building on Main Street. This portion of the request is to allow construction in the fringe of the St. Croix River floodplain. The conditional use permit may be approved as long as the building is at or above the floodplain and as long as the approaches to the building are no more than two feet below the floodplain. He noted that this project meets those requirements. Mayor Harycki opened the public hearing. Hearing no persons wishing to testify, Mayor Harycki closed the public hearing. Councilmember Cook asked Community Development Director Turnblad about other nearby buildings. He stated most all buildings east of Main Street have similarly had a Conditional Use Permit. Motion by Councilmember Menikheim, seconded by Councilmember Roush, to adopt Resolution 2012 -093, approving a flood fringe conditional use permit as outlined in the City of Stillwater floodplain overlay district regulations. Page 7 of 11 City Council Meeting June 5, 2012 Ayes: Councilmembers Menikheim, Polehna, Cook, Roush, and Mayor Harycki Nays: None UNFINISHED BUSINESS Possible approval of second reading; of Ordinance 1047 an ordinance amending the Stillwater City Code Chapter 34 entitled Building Demolition Motion by Councilmember Cook, seconded by Councilmember Polehna, to adopt Ordinance 1047, amending the Stillwater City Code, Chapter 34, Entitled Building Demolition. Ayes: Councilmembers Menikheim, Polehna, Roush, Cook, and Mayor Harycki Nays: None NEW BUSINESS Possible approval of issuance of a new combination liquor license (on -sale and off sale) and Sunday Domacin LLC applicant City Clerk Ward explained that as a result of Council's March 20 action allowing combination licenses, an application has been received from the current applicant. The applicant is willing to upgrade from a wine /strong beer to a combination on -sale and off -sale and Sunday liquor license. She stated that the applicant will have to abide by the off -sale liquor store hours set by State Statute. The approval should be contingent upon approvals and inspections by the Police, Fire, Finance and Building Departments. Staff recommends approval. Motion by Councilmember Menikheim, seconded by Councilmember Roush, to adopt Resolution 2012 -094, approving the issuance of a combination and Sunday liquor license to Domacin LLC. Ayes: Councilmembers Menikheim, Polehna, Roush, Cook, and Mayor Harycki Nays: None Possible appointment of Brian Larson to the Heritage Preservation Commission Councilmember Cook indicated that she was part of the interview process and feels Mr. Larson will be a valuable asset to the commission. Motion by Councilmember Cook, seconded by Councilmember Polehna, to adopt Resolution 2012- 095, appointment to Heritage Preservation Commission. Ayes: Councilmembers Menikheim, Polehna, Roush, Cook, and Mayor Harycki. Nays: None Request for Proposals for Police Department Expansion Community Development Director Turnblad informed the Council that because the fire station area will be freed up with construction of the new fire station, the existing space might be reconfigured to provide for the needs of the Police Department. He would like to request proposals for a study to be distributed in the next few weeks. Page 8 of 11 City Council Meeting June 5, 2012 Councilmember Cook asked if this would be an appropriate time to discuss having a fire presence downtown after the new fire station is constructed, and Mr. Turnblad answered° that this would be a separate project. Mayor Harycki noted that he would hope to find out approximately how much money the City could expect to spend for the possible retrofit of the station to serve Police Department space needs. Motion by Councilmember Roush, seconded by Councilmember Polehna, to adopt Resolution 2012 -096, authorizing staff to proceed with an RFP for expansion of the Police Department facility. Ayes: Councilmembers Menikheim, Polehna, Roush, Cook, and Mayor Harycki Nays: None COMMUNICATIONS AND REQUESTS Councilmember Polehna reported that plans for the July 4th fireworks are moving along. The music will be simulcast on KLBB radio. Councilmember Cook inquired about the expansion of the problem property issue brought up at the last meeting. She asked if there was any progress on the possibility of the City contracting with a service for housing inspections. Community Development Director Turnblad answered that the City currently doesn't have a code of what to inspect for, so hiring a service may be premature at this time. He stated that in regard to the property on South Fourth Avenue, Mr. Magnuson is helping the City work toward a finding that the building is abandoned. This approach will give the City more options. Mr. Magnuson suggested that for the next meeting he could have four or five proposals from inspection services for discussion. Councilmember Cook informed the Council she has had complaints of chronic congestion downtown. With completion of the bridge set for 2017, she stated the City is looking at five more years of congestion downtown. She has contacted the Coast Guard to learn options for requesting that the lift bridge schedule be changed. She learned that the issue was last looked at by the Coast Guard in 1998. Mayor Harycki offered that the City might solicit suggestions for a recommendation from the Convention and Visitors Bureau. Councilmember Menikheim expressed that he feels this is all part of a bigger picture of how can the City control traffic. He suggested that perhaps instead of every hour or every half hour, the bridge could wait to be lifted every hour during the most intense traffic times. He suggested consulting Mr. Anderson of St. Croix Boat and Packet Company about the issue. Mayor Harycki noted that getting everyone on the same page, and approaching the Coast Guard with a concrete proposal for suggested lift times, might provide a better likelihood of success. Councilmember Polehna indicated that feedback could be solicited from the Assistant Commissioner of Transportation. Public Works Director Sanders agreed to organize a meeting among stakeholders on this issue. Mayor Harycki reported that the City's current population is 18,299 according to the Metropolitan Council. Page 9 of 11 City Council Meeting June 5, 2012 Mayor Harycki recapped the Council's recent meeting on review design of the proposed Armory/Fire Station. He pointed out that the process is moving forward, and final concept sketches should be before the Council on July 3. Councilmember Roush mentioned that at an earlier meeting today, the Fire Department effectively cut some costs from the project. The department continues to be diligent in cutting costs wherever possible. Councilmember Menikheim spoke about the fact that the Council has been waiting to get iPads which are in the budget. He also would like to move forward with getting the City H all equipped with wireless access. Mayor Harycki stated that he thought the school district had previously expressed an interest in some type of cost sharing. He requested that City Clerk Ward follow up on this. Councilmember Menikheim suggested the City revisit having a lobbyist. Mayor Harycki stated that money is needed to complete the Gateway Trail. He believes the City should look at possibly hiring a lobbyist to help obtain funding for this project and others, as part of budget discussions. ADJOURNMENT Motion by Councilmember Menikheim, se, All in favor. ATTEST: Diane F. Ward, City Clerk 7 p.m. Resolution 2012 -089, Directing the Payment of Bills Resolution 2012 -090, Approval of Change Order #1 Main Street Pedestrian Walkway Site Work Resolution 2012 -091, Approval of Change Order #4 Main Street Pedestrian Walkway Public Restroom Resolution 2012 -092, Authorizing the Certified Local Government Grant Application through the Minnesota Historical Society Resolution 2012 -093, Approving a flood fringe conditional use permit as outlined in the City of Stillwater floodplain overlay district regulations Resolution 2012 -094, Approving the issuance of a combination and Sunday liquor license to Domacin LLC Resolution 2012 -095, Appointment to Heritage Preservation Commission Resolution 2012 -096, Authorizing staff to proceed with an RFP for expansion of the Police Department facility Page 10 of 11 City Council Meeting June 5, 2012 Ordinance 1047, Amending the Stillwater City Code, Chapter 34, Entitled Building Demolition Page 11 of 11