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THE IINTN CIF GE OF MINNFI.
CITY COUNCIL MEETING
August 20, 2013
SPECIAL MEETING
Councilmember Menikheim called the meeting to order at 4:30 p.m.
Present: Councilmembers Menikheim, Kozlowski, Weidner
Absent: Mayor Harycki and Councilmember Polehna
Staff present: City Administrator Hansen
City Attorney Magnuson
MIS Specialist Holman
St. Croix Valley Rec Center Manager Brady
Finance Director Harrison
Community Development Director Turnblad
OTHER BUSINESS
Budget Workshop
4:30 P.M.
City Administrator Hansen presented highlights of the budget. The State has changed the way levy
limits are calculated. The Department of Revenue will not provide levy limit information until
September. The levy as proposed will be up $122,124 over last year, or 1.174 %0. The tax rate will go
down 6.3 %, partially due to residential values going down. The good news is that there is a zero
percent increase in health insurance costs. Preliminary budget requests from department heads
included lots of requests for additional personnel. Local government aid which was initially to be
$290,558 will now be $568,591.
Recreation Center
Doug Brady, manager of the St. Croix Valley Recreation Center, stated there is continued
competition with other arenas that offer ice time, resulting in a decrease in revenues. City
Administrator Hansen pointed out the center is very careful about not budgeting for more revenue
than anticipated.
Community Development /Building Inspections /Parking Ramp
Community Development Director Turnblad explained a proposal to change the one FTE that shares
the two departments into a 1.5 FTE by having a half -time secretary in the Planning Department and a
permit technician in the Building Department. This will give the Building Department more hours.
City Council Meeting
August 20, 2013
City Administrator Hansen explained the capital requests. Three departments, Community
Development, Engineering and Planning /Building, are sharing the cost of a large scale scanner.
MIS
MIS Specialist Holman stated there are no major changes other than maintenance agreement
increases. Mr. Hansen stated that Ms. Holman requested another FTE position which he had to deny
this year but Council should consider next year. Councilmember Menikheim commented that the
Council needs to address staff workload. MIS Specialist Holman responded that the Department
needs another full -time person but anything would help. She and Rich support about 230 users. She
anticipates workload will keep going up in the next five years.
Legal
City Attorney Magnuson reviewed his budget requests. Prosecutions are taking increasing amounts
of time to the point of being a full time job.
ADJOURNMENT
The meeting was recessed at 5:46 p.m.
REGULAR MEETING
Vice Mayor Polehna called the meeting to order at 7:02 p.m.
7:00 P.M.
Present: Councilmembers Menikheim, Kozlowski, Weidner, Vice Mayor Polehna
Absent: Mayor Harycki
Staff present: City Administrator Hansen
City Attorney Magnuson
Police Chief Gannaway
Fire Chief Glaser
Public Works Director Sanders
Finance Director Harrison
Community Development Director Turnblad
City Clerk Ward
PLEDGE OF ALLEGIANCE
Sergeant Chris Felsch led the Council and audience in the Pledge of Allegiance.
APPROVAL OF MINUTES
Motion by Councilmember Weidner, seconded by Councilmember Kozlowski, to approve the July 30,
2013 regular and recessed meeting minutes. All in favor.
Page 2 of 11
City Council Meeting August 20, 2013
PETITIONS, INDIVIDUALS, DELEGATIONS & COMMENDATIONS
Certificate of Appreciation and Presentation of Retirement Plaque - Ken Schmitz
Vice Mayor Polehna read the Certificate of Appreciation commending retiring firefighter Ken
Schmitz for his 25+ years of service to the community.
Motion by Councilmember Kozlowski, seconded by Councilmember Menikheim, to adopt Resolution
2013 -122, Certificate of Appreciation — Ken Schmitz.
Ayes: Councilmembers Menikheim, Kozlowski, Weidner, and Vice Mayor Polehna
Nays: None
Police Department Awards
Police Chief Gannaway presented Citizen Commendations to Sarah Norheim, Trenton Estes, and
Dana Lucker -Milan for their surveillance of a burglary in progress and notifying the Police
Department. He continued by saying that our community is the eyes and ears of the Police
Department and the action by these individuals is a prime example. He also presented Police
Department Letters of Commendation to Sergeant Jeff Stender, Officers Kyle Sykes and Ryan
Mitchell, and Reserve Officer Jon Burke, and Distinguished Service Awards to Sergeant Chris
Felsch, Officer Sandra Vetsch and Officer Ryan Mitchell.
Conceptual discussion by artist Carly Schmitt of a potential public participation art project on
Downtown Pedestrian Walkway
Community Development Director Turnblad introduced Carly Schmitt, an artist who attended
Stillwater High School, who specializes in "public participation" art. She has worked with a number
of cities in Minnesota and in Germany on art projects that have engaged broad spectrums of those
communities.
Ms. Schmitt explained her proposal for a community project for the river facing wall of the
pedestrian mall building. She presented samples of her public participatory artwork in other
communities and ideas for possible grant funding.
Councilmembers Menikheim, Kozlowski and Polehna expressed support for public art as it fits with
the revitalization of downtown.
Motion by Vice Mayor Polehna, seconded by Councilmember Menikheim, to instruct Community
Development Director Turnblad to proceed with the proposal subject to funding. All in favor.
OPEN FORUM
Dick Zimmerman and Rick Chial, new owners of Stillwater Trolley, introduced themselves to the
Council.
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City Council Meeting
STAFF REPORTS
August 20, 2013
Police Chief Gannaway informed the Council there were nine locations for this year's Night to
Unite. He also said extra police support and education continue for enforcement of motorcycle noise
restrictions. Vice Mayor Polehna thanked Officer Young and merchants for their efforts on Night to
Unite.
Fire Chief Glaser announced the DNR fire threat level has been increased to moderate. He
acknowledged receiving a check for $25 to the Fire Department from children at Thrive Time
Daycare for purchase of equipment. Council asked City Administrator Hansen to send a letter
thanking the children for their support of the Fire Department.
Community Development Director Turnblad stated the RFP for a summer event generated five
responses. Proposals are due at the end of September.
Public Works Director Sanders indicated that winterizing the Lowell Park Bathroom would cost
approximately $45,000 more for insulation, plus an additional operating cost of $2,000 per month
for winter time. Vice Mayor Polehna suggested a compromise to look at options for a heating system
to keep the bathrooms open one month longer in the fall and open one month earlier in the spring.
Public Works Director Sanders reported that the majority of underground work is complete on the
Corps of Engineers Project. Completion is anticipated by September 19. About a month of work is
left on the street reconstruction project. City Administrator Hansen commended Public Works
Director Sanders and the Engineering Department for generating zero complaints on the street
projects.
City Administrator Hansen clarified a previous meeting discussion, saying that he met August 9th
with Jon Whitcomb who had done an inventory of downtown space. He is concerned about how to
keep this information up to date. He informed the Council that Community Development Director
Turnblad and he will meet tomorrow with a company that provides this service. Regarding
discussion about forming an Economic Development Authority (EDA), he does not recommend a
formal group, but does support an informal entity, perhaps with a two -year timeline that could be
renewed every two years. He would recommend the group consist of two members of the Council
and three from the Downtown Revitalization Committee. He received information from a consultant
who responded to the RFP which needs some fine tuning. He hopes to meet with the consultant and
will bring these items back to the Council at the next meeting.
CONSENT AGENDA
Resolution 2013 -121, directing payment of bills
Resolution 2013 -123, approving State of Minnesota Joint Powers Agreements with the City of
Stillwater on behalf of its City Attorney and Police Department
Resolution 2013 -124, approval and acceptance of 2014 Volunteer Fire Assistance (VFA) Grant
Award
Resolution 2013 -125, resolution amending Resolution 2013 -12, Fees for Services /Publications
Administrative Citations Fine Schedule
Page 4 of 11
City Council Meeting
August 20, 2013
Possible approval to purchase emergency lighting packet for 1st response engine — Fire
Department
Resolution 2013 -126, approval of Consumption & Display Permit (Liquor) for The Loft at
Studio J LLC; DBA: The Loft at Studio J (located at 214 Main Street S)
Resolution 2013 -127, Approval of request by Valley Ridge Shopping Center to rescind a
previously approved sign variance
Resolution 2013 -128, approval of Microsoft Licensing Agreement
Resolution 2013 -129, amending Resolution 2013 -065, entitled "Amending Section 8 -4
Severance Pay of the City of Stillwater's Personnel Policy"
Resolution 2013 -130, approval of Joint Powers Agreement of the SWAT Teams serving
Washington County
Resolution 2013 -131, approval of a resolution recognizing the historic significance of 114
Chestnut
Resolution 2013 -132, appointment to Human Rights Commission
Resolution 2013 -133, appointment to Board of Water Commissioners
Resolution 2013 -134, approving offer to sell and memorandum of conditions- Mn/DOT
Councilmember Menikheim requested that Resolution 2013 -131 be pulled from the Consent
Agenda.
Motion by Councilmember Menikheim, seconded by Councilmember Kozlowski, to adopt the Consent
Agenda as amended.
Ayes: Councilmembers Menikheim, Kozlowski, Weidner, and Vice Mayor Polehna
Nays: None
Councilmember Menikheim expressed concern about the building at 114 Chestnut Street becoming a
victim of demolition by neglect. He wishes to draw to the public's attention the Heritage
Preservation Commission's recommendation that the Council declare that due to the structure being
among the oldest known wood structures in Stillwater, its preservation is important to the
community and the State of Minnesota. He indicated there is now a buyer for the building.
Motion by Councilmember Menikheim, seconded by Councilmember Kozlowski, to pass Resolution
2013 -131, recognizing the historic significance of 114 Chestnut Street.
Ayes: Councilmembers Menikheim, Weidner, Kozlowski, and Vice Mayor Polehna
Nays: None
PUBLIC HEARINGS
Case No. 2013 -12. A public hearing to consider a request from Jon Whitcomb for final plat for a 15 lot
residential subdivision known as Brown's Creek Preserve located at 12205 McKusick Road North and
any variances related thereto.
Community Development Director Turnblad explained the request.
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City Council Meeting
August 20, 2013
Vice Mayor Polehna opened and closed the public hearing. There were no public comments.
Motion by Councilmember Weidner, seconded by Councilmember Kozlowski to adopt Resolution
2013 -135A, annexing land to the City of Stillwater pursuant to the joint resolution of the City and Town
of Stillwater as to orderly annexation dated August 16, 1996; Resolution 2013 -135B, approving the
final plat for Brown's Creek Preserve; and Resolution 2013 -135C, approving the development
agreement for Brown's Creek Preserve, Case No. 2013 -12.
Ayes: Councilmembers Menikheim, Kozlowski, Weidner, and Vice Mayor Polehna
Nays: None
Case No. DR/2013 -38. A public hearing to consider an appeal of the Heritage Preservation
Commission's decision to deny a request for the proposed trash enclosure located at 101 Water Street
North (associated with 127 Water Street South) in the CBD Central Business District. The proposed
location will necessitate the City Council's consideration of the removal of a condition of approval
associated with Case No. SUP/94 -39. Chuck Dougherty, applicant.
Community Development Director Turnblad reviewed the request. Chuck Dougherty, the property
owner, is requesting the City Council's consideration of an appeal to the Heritage Preservation
Commission's (HPC) denial of a design review permit (DR2013 -34) for a proposed trash enclosure
to be located at 101 Water Street North. The HPC denied the request on the basis that the proposed
location at the southwest comer of the parking lot was not in conformance with the Inn's Special Use
Permit (SUP 94 -39) and a more recently executed Development Agreement which stated the
enclosure would be placed along the west side of the Inn. Staff believes that the trash enclosure
proposed by Mr. Dougherty meets the standards of the Design Review Manual, Comprehensive Plan
and the Heritage Preservation Ordinance. The application, however, does not meet conditions
imposed through Special Use Permit 94 -39, as conditioned by the City Council, the Development
Agreement approved by the City Council, or the lane width requirement outlined in the Zoning
regulations.
Councilmember Menikheim noted this problem has been going on for almost 20 years. He
questioned the prudence of the original SUP requiring the trash be inside the building. He would like
to rescind the SUP requirement from 1994 and consider locating the enclosure in the northeast
corner along the pedestrian walkway where he feels it would blend in.
Vice Mayor Polehna opened the public hearing.
Chuck Dougherty, of the Water Street Inn, commented that the location on the southwest corner was
proposed by former City Planner Pogge. He would prefer to place the enclosure near where it was
prior to the pedestrian walkway in the northeast corner. It could be constructed with brick similar to
the retaining wall and would have a roof.
Brian Larson, Chair of the HPC, explained why the proposal was denied. He stated that the 1994
SUP stated the garbage should be inside. In 2011 the City made a concession to have the garbage
adjacent to the building. Mr. Larson stated that both proposed locations are in view of the river and
do not make sense. He understands the bar was built without permit or approval and did not go
Page 6 of 11
City Council Meeting
August 20, 2013
before the HPC. One on- street parking space could be designed for trash truck use so it should be
either in the building or in the area adjacent to the exit door near the outdoor bar. He believes this is
not a case of being anti- business, just being fair.
Vice Mayor Polehna closed the public hearing.
Councilmember Menikheim pointed out that the City did not previously enforce the ordinance or the
SUP. He doesn't feel a trash enclosure in the northeast corner would cause a public problem.
Councilmember Weidner remarked that the business should comply with the established restrictions
and conditions. It is still a compromise if the trash enclosure is allowed to be outside. He is in favor
of the HPC recommendation and feels it should be placed in the bar area as suggested by the HPC.
Councilmember Kozlowski stated he is not comfortable with the locations in the corner of the
parking lot and asked if it could be in the middle of the lot. He feels the most ideal spot would be
near the outdoor bar but if it would cause extreme hardship to the Water Street Inn, he would look at
other options.
Vice Mayor Polehna said the City needs to start enforcing the rules on garbage, as he hears
complaints all the time.
Motion by Councilmember Weidner, seconded by Vice Mayor Polehna, to deny
Heritage Preservation Commission's decision, sustaining the HPC decision to deny
proposed trash enclosure location located at 101 Water Street North (associated wit h
South).
Ayes: Councilmembers Kozlowski, Weidner, and Vice Mayor Polehna
Nays: Councilmember Menikheim
UNFINISHED BUSINESS
National Guard Armory Update
the appeal of the
a request for the
127 Water Street
Community Development Director Turnblad informed the Council that Congress has not yet
approved the Defense Department's 2014 budget. However the Armory construction drawings have
been approved. Construction is still expected to begin in April 2014.
NEW BUSINESS
Request for Wharfage Permit - St. Croix Sailing Club
City Administrator Hansen reviewed the request. The Club would like to spend the night of August
24 tying up against the levee wall in South Lowell Park. There would be 12 -15 boats.
Vice Mayor Polehna said he feels the City would be letting itself in for many more such requests.
Page 7 of 11
City Council Meeting August 20, 2013
Councilmember Menikheim, Kozlowski and Weidner felt that the City should give the request a try.
Police Chief Gannaway noted that the City has had issues with boats that have moored against the
levee wall.
Motion by Councilmember Kozlowski, seconded by Councilmember Menikheim, to adopt Resolution
2013 -136, granting a wharfage permit to the St. Croix Sailing Club.
Ayes: Councilmembers Menikheim, Kozlowski, Weidner
Nays: Vice Mayor Polehna
Update on cost and funding mechanisms for Downtown Improvement
Public Works Director Sanders reviewed ongoing and upcoming projects for Lowell Park areas,
costs and funding sources which include the Lowell Park Improvement fund, a DNR Flood Hazard
Mitigation Grant, remaining funding from the Pedestrian Plaza, the Water Street Inn assessment,
Stage 3 Levee Wall Fund, Downtown Parking and TIF Funds. Total cost of all the projects to Lowell
Park and downtown improvements is approximately $1.4 million.
Possible approval of bids and awarding contract for Downtown Parking Lot Improvements
Public Works Director Sanders stated that the low bidder was Hardrives for $581,450.46 which was
$20,000 higher than the engineer's estimate, but staff feels it is still a very good bid. Work would
begin in September and be substantially completed by the end of November.
Motion by Councilmember Menikheim, seconded by Councilmember Kozlowski, to adopt Resolution
2013 -137, accepting the bid and awarding the contract to Hardrives, Inc. for the downtown parking lot
improvement project (Project 2012 -06).
Ayes: Councilmembers Menikheim, Kozlowski, Weidner, and Vice Mayor Polehna
Nays: None
Possible approval of a contract for the 2013 -14 CLG Grant Project to create a self - guided video podcast
walking tour of historical houses in Stillwater
Community Development Director Turnblad explained that the City received a grant from the State
Historic Preservation Office to work on a residential tour. Two very strong proposals were received
from consultants interested in completing the project.
The Heritage Preservation Commission (HPC) held a special meeting on August 12 to hear
presentations by each consultant. The four members of the HPC present at the meeting, Chairman
Larson and Commissioners Goodman, Johnson and Welty, scored the merits of each of the proposals
and presentations. The tallied results were a tie. Following discussion, the HPC recommended by a
3 -1 vote, that the City Council enter into an agreement for services with Donald Empson.
Page 8 of 11
City Council Meeting
August 20, 2013
Mr. Empson explained the process he intends to follow to create the podcasts. He discussed his
credentials.
Mr. Hoisington summarized his qualifications for the project.
Motion by Councilmember Kozlowski, seconded by Councilmember Menikheim, to enter an agreement
with Donald Empson.
Ayes: Councilmembers Menikheim and Kozlowski
Nays: Councilmember Weidner and Vice Mayor Polehna
Staff will bring the item back to Council at their next meeting due to the tie vote.
Possible approval for Washington Avenue storm sewer pipe joints repair
Public Works Director Sanders explained that Washington Avenue, north of Frontage Road to
Tower Drive, has approximately 767 lineal feet of pipe whose joints are now failing and need repair.
The repairs would be done in phases over a three year period. The cost of this repair is $2,303 per
joint for a cost $73,700. Staff recommends contracting with Thul Specialty Contracting, Inc. for
$73,700 for repair of storm sewer joints on Washington Avenue. The money will come from Storm
Sewer Repair Fund.
Motion by Councilmember Weidner, seconded by Councilmember Menikheim, to adopt Resolution
2013 -138, entering a contract with Thul Specialty Contracting, Inc. for repair of storm sewer joints on
Washington Avenue.
Ayes: Councilmembers Menikheim, Kozlowski, Weidner, and Vice Mayor Polehna
Nays: None
Discussion and possible approval of Sanitary Sewer Rates
Finance Director Harrison explained the auditor's concerns about the Sanitary Sewer Fund. During
the presentation of the 2012 financial statement, auditors strongly suggested that the City consider
raising rates to cover the deficit in the Sanitary Sewer Fund. One of the auditor's main concerns was
the depletion of cash in the fund. Staff strongly encourages raising sewer rates to fund the entire
operating loss of $310,076. This option would result in a $3 increase in the base rate and a $1.10
increase in the overage rate. Ms. Harrison continued that the last sanitary sewer rate increase
occurred in 2006.
Motion by Councilmember Menikheim, seconded by Councilmember Weidner, to adopt Resolution
2013 -139, increasing sanitary sewer rates by $3 in the base rate and by $1.10 in the overage rate.
Ayes: Councilmembers Menikheim, Kozlowski, Weidner, and Vice Mayor Polehna
Nays: None
Page 9 of 11
City Council Meeting
COUNCIL REQUEST ITEMS
August 20, 2013
Councilmember Menikheim asked that staff present recommendations on how to pass along
snowplowing costs to downtown property owners. Public Works Director Sanders stated that the
information will hopefully be before Council the second meeting of September.
Councilmember Polehna stated that he is not in favor of the City spending extra money on
downtown snow removal, but if a district is set up and the costs are assessed to the businesses
similar to the model in White Bear, he is more open to the creation of a district.
Vice Mayor Polehna provided a Yellow Ribbon Update. The Pheasant Hunt for returning troops will
be held on October 19. The Yellow Ribbon Network is looking for sponsors.
ADJOURNMENT
Motion by Councilmember Menikheim, seconded by Councilmember Kozlowski, to adjourn the
meeting at 9:42 p.m. All in favor.
ATTEST:
• j6Z
14�
Diane F. Ward, City Clerk
Mi ael Polehna, Vice Mayor
Resolution 2013 -121, directing payment of bills
Resolution 2013 -122, commending Ken Schmitz
Resolution 2013 -123, approving State of Minnesota Joint Powers Agreements with the City of
Stillwater on behalf of its City Attorney and Police Department
Resolution 2013 -124, approval and acceptance of 2014 Volunteer Fire Assistance (VFA) Grant
Award
Resolution 2013 -125, amending Resolution 2013 -12, Fees for Services /Publications
Administrative Citations Fine Schedule
Resolution 2013 -126, approval of Consumption & Display Permit (Liquor) for The Loft at
Studio J LLC; DBA: The Loft at Studio J (located at 214 Main Street S)
Resolution 2013 -127, approval of request by Valley Ridge Shopping Center to rescind a
previously approved sign variance
Resolution 2013 -128, approval of Microsoft Licensing Agreement
Resolution 2013 -129, amending Resolution 2013 -065, entitled "Amending Section 8 -4
Severance Pay of the City of Stillwater's Personnel Policy"
Resolution 2013 -130, approval of Joint Powers Agreement of the SWAT Teams serving
Washington County
Page 10 of 11
City Council Meeting
August 20, 2013
Resolution 2013 -131, approval of a resolution recognizing the historic significance of 114
Chestnut
Resolution 2013 -132, appointment to Human Rights Commission
Resolution 2013 -133, appointment to Board of Water Commissioners
Resolution 2013 -134, approving offer to sell and memorandum of conditions- Mn/DOT
Resolution 2013 -135A, annexing land to the City of Stillwater pursuant to the joint resolution of
the City and Town of Stillwater as to orderly annexation dated August 16, 1996
Resolution 2013 -13513; approving the final plat for Brown's Creek Preserve
Resolution 2013 -135C, approving the development agreement for Brown's Creek Preserve,
Case No. 2013 -12
Resolution 2013 -136, granting a wharfage permit to the St. Croix Sailing Club
Resolution 2013 -137, accepting the bid and awarding the contract to Hardrives, Inc. for the
downtown parking lot improvement project (Project 2012 -06)
Resolution 2013 -138, entering a contract with Thul Specialty Contracting, Inc. for repair of
storm sewer joints on Washington Avenue
Resolution 2013 -139, approval of sanitary sewer rates
Page 11 of 11