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CITY COUNCIL MEETING MINUTES
January 21, 2014
REGULAR MEETING
Mayor Harycki called the meeting to order at 7:03 p.m.
7:00 P.M.
Present: Councilmembers Menikheim, Kozlowski, Weidner, Polehna, Mayor Harycki
Absent: None
Staff present: City Administrator Hansen
City Attorney Magnuson
Finance Director Harrison
Police Captain Meredith
Deputy Fire Chief Ballis
Community Development Director Turnblad
Public Works Director Sanders
Public Works Superintendent Moore
City Clerk Ward
PLEDGE OF ALLEGIANCE
Mayor Harycki led the Council and audience in the Pledge of Allegiance.
APPROVAL OF MINUTES
Possible approval of January 7 2014 regular and recessed meeting minutes
Motion by Councilmember Kozlowski, seconded by Councilmember Polehna, to approve the
January 7, 2014 regular and recessed meeting minutes. All in favor.
PETITIONS, INDIVIDUALS, DELEGATIONS & COMMENDATIONS
CVB Presentation - Tiki Oswald
Tiki Oswald, outgoing president of the CVB, presented the Stillwater /Oak Park Heights
Convention & Visitor Bureau Annual Report.
Barb Truman, marketing director for the CVB, explained marketing and advertising highlights
for 2013, including analysis of web site views, distribution of the Stillwater Visitor Guidebook,
and promotion of weddings and meetings.
Christie Rosckes, Fresh Avenue Marketing, explained the monthly e- newsletter, media and
social media management. She summarized CVB marketing goals for 2014.
Antonio Rossini, incoming CVB president, thanked the Council for its support.
City Council Meeting
January 21, 2014
City Administrator Hansen thanked the CVB representatives for the clean audit report
submitted.
Councilmember Menikheim commended the CVB for its work promoting the City.
Councilmember Weidner asked if there is any measurement of the program's success other than
tracking web site visits and he would like to know whether occupancy of B & Bs increased. Mr.
Rossini replied that it is difficult to track exactly how many people visit the City, though
lodging statistics indicate Stillwater is above average for the State. Ms. Truman referred to the
lodging tax report, Google Analytics and the State of Minnesota Office of Tourism for statistics.
Councilmember Kozlowski stated that statistics he gathered indicate that B & B occupancy is
UP.
City Administrator Hansen added that B & Bs generate 21 -22% of lodging taxes collected.
Councilmember Polehna asked how the CVB will market the new trail and other new downtown
amenities. Ms. Truman replied that the CVB will promote the new bike trail and the bridge,
conveying that visitors can still come to Stillwater during construction.
Downtown Revitalization Committee Update - Todd Streeter
Todd Streeter, Greater Stillwater Chamber, briefly reviewed the Downtown Revitalization
Committee's work over the past 18 months and the scope of work planned for 2014.
OPEN FORUM
There were no public comments.
STAFF REPORTS
Community Development Director Turnblad presented the Community Development Annual
Report and reviewed the 2014 -2015 Work Plan.
Public Works Director Sanders reported that MnDOT has decided that closing Highway 95 for
two weeks to facilitate construction of the Loop Trail would not be a good idea for the summer
months, so construction of the trail south of the City will be delayed till the summer of 2016.
Public Works Superintendent Moore gave an overview of improvements done in 2012 -2013 in
Lowell Park and proposed for 2014.
Mayor Harycki recognized Finance Director Harrison and the Finance Department for receiving
a Government Finance Officers Association Award. The Department has been receiving this
award for over 20 years.
City Administrator Hansen reported that a meeting with Congresswoman McCollum is
scheduled for tomorrow to discuss Senate approval of the funding for the Armory.
CONSENT AGENDA
Resolution 2014 -015, directing payment of bills
Resolution 2014 -016, approving Fiber Joint Powers Agreement between Washington
County and the City of Stillwater
Resolution 2014 -017, approving license to use real property — HHW Day, Saturday, May
17, 2014
Resolution 2014 -018, approval of Forestry Consultant Contract for 2014
Page 2 of 6
City Council Meeting January 21, 2014
Possible approval to purchase GPS Tracking System — Public Works
Possible approval to purchase John Deere 1025R Tractor — Public Works
Possible approval to purchase Bobcat 590 Skid Steer — Public Works
Motion by Councilmember Menikheim, seconded by Councilmember Polehna, to adopt the Consent
Agenda.
Ayes: Councilmembers Menikheim, Kozlowski, Weidner, Polehna, Mayor Harycki
Nays: None
PUBLIC HEARINGS
There were no public hearings.
UNFINISHED BUSINESS
Possible second reading of Ordinance 1063 an ordinance amending Chapter 56 of the Stillwater
City Code taxes and assessments, Section 56 -5, Local Lod in Tax
Tom Lynum of the Sauntry Mansion Bed & Breakfast reiterated his request to reduce the
lodging tax on small properties from 3% to 1 %. He stated he had received severe reaction to
comments by others claiming that B & Bs are going away. To refute this, he provided some B &
B history and stated the B & Bs contribute to the community in many ways and have low impact
on City services.
Erin Drews of the Ann Bean Mansion Bed & Breakfast summarized free web -based
promotional opportunities including Facebook pages, blogs, Twitter, Pinterest and Instagram.
Trip Advisor web site users consistently rate Stillwater B & Bs at 97% or higher. B & B owners
view themselves as ambassadors for Stillwater. Together with the sales tax, the lodging tax
boosts taxes over 10% which seems to be an undesirable threshold for guests.
Councilmember Kozlowski asked if B & B owners feel the lodging tax is keeping guests away.
Mr. Lynum responded that B & Bs try to make sure their customers get maximum value for
their stay.
Councilmember Polehna remarked that he does not feel people avoid Stillwater due to the
lodging tax. He believes positive reviews on websites like Trip Advisor impact customer
choices more than the lodging tax.
Mayor Harycki remarked there is a benefit to having a vital downtown and activities for visitors
to see and do, and the CVB helps achieve this.
Councilmember Menikheim stated the Council must represent the majority of the City. He
believes the majority of the City supports the lodging tax.
Mr. Lynum noted that if the lodging tax went from 3% to 1% for small properties, other B & Bs
could still charge 3% if they wanted.
Jerry Helmberger of the Aurora Staples Bed & Breakfast stated he was opposed to the formation
of the CVB but once it was established, he joined as a board member. If there were no lodging
tax today he would argue against it. He believes the CVB does its work and supports it, but is
opposed to taxes. Not all small properties in Stillwater would be opposed to the lodging tax
remaining at 3%.
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City Council Meeting January 21, 2014
Antonio Rossini of the Lexington Hotel and CVB president, offered to answer any questions.
Councilmember Kozlowski asked for a breakdown of room bookings, large versus small
properties, so that everyone could see the tangible value of the CVB's work.
Finance Director Harrison shared that from 2012 to 2013, the City saw a 13% increase in
occupancy rates for B & Bs in the first quarter of each year and a 10% increase in the second
quarter, while third quarter saw a decrease. The same holds for the hotels, but for them the third
quarter was up. Overall, occupancy rates rose by 13 %, 11 % and 11 % for the three quarters of
the year. This is based on tax revenues and does not account for any increase in rates.
Mr. Lynum offered to help put together any analysis that the Council would like to see
compiled.
City Attorney Magnuson noted that at the Council's direction, the Ordinance language changed
from the previous reading, and now covers three years, sun setting January 31, 2017.
Motion by Councilmember Menikheim, seconded by Councilmember Polehna, to adopt Ordinance
1063, an ordinance amending Chapter 56 of the Stillwater City Code, taxes and assessments,
Section 56 -5, Local Lodging Tax.
Councilmember Weidner commended the CVB and stated he is not convinced a reduction in the
lodging tax would have a positive effect, nor is he sure the existing 3% lodging tax has a
negative effect. He feels the B & Bs play a great role in the City's architectural and historical
appeal to visitors.
Councilmember Kozlowski stated he would not want the ordinance to have a negative impact on
businesses. He would like to focus more on how the City can support B & Bs.
Ayes: Councilmembers Menikheim, Kozlowski, Weidner, Polehna, Mayor Harycki
Nays: None
NEW BUSINESS
Possible approval of BWBR proposal for the next phase of Fire Station design services
Community Development Director Turnblad informed the Council that staff is in the process of
getting a bid proposal for design services. It will be brought back to the Council on February 4.
Possible approval of 2014 Fee Schedule for services /publications and Administrative Citations
Fines
City Clerk Ward presented a recommended 2014 Fee Schedule reflecting increases in Sewer and
Water Hookups, Development Fees, and Trunk Sewer and Water, based on the Construction
Cost Index.
Motion by Councilmember Kozlowski, seconded by Councilmember Menikheim, to adopt
Resolution 2014 -019, 2014 Fee Schedule.
Ayes: Councilmembers Menikheim, Kozlowski, Weidner, Polehna, Mayor Harycki
Nays: None
Possible approval of resolution vacating street
treet
City Attorney Magnuson explained the vacation will eliminate a flaw on the title for the
property owner and is of no benefit to the City to retain the right of way through this property.
Page 4 of 6
City Council Meeting January 21, 2014
Motion by Councilmember Polehna, seconded by Councilmember Kozlowski, to adopt Resolution
2014 -020, a resolution vacating a public right of way Block One (1) Thompson, Parker and
Mower's Second Addition to Stillwater
Ayes: Councilmembers Menikheim, Kozlowski, Weidner, Polehna, Mayor Harycki
Nays: None
Discussion on Community Resource Officer - Police Department
Captain Meredith reminded the Council that in February 2013, the Council authorized the
Community Resource Officer (CRO) position on a part-time, 100 -day hire basis. The CRO has
been hired as a police officer, so the position is now vacant. The position has proved to be
invaluable, and the Department is requesting permission to make it a full -time position.
City Administrator Hansen stated there are some cost savings because the police officer hired
will start at a much lower rate than the officer he is replacing. He supports the request.
Councilmember Weidner asked why the position needs to be increased from part-time to full -
time when the part-time position worked well.
Police Chief Gannaway (arrived at 9:22 p.m.) and replied that the position has proven itself to
be needed on a full -time basis, especially the investigative aid that is involved. It would make
existing staff more efficient in terms of code enforcement, investigations, and other staff roles.
Motion by Councilmember Menikheim, seconded by Councilmember Kozlowski, to approve the
position as written. All in favor.
COUNCIL REQUEST ITEMS
Councilmember Polehna asked that the Parks Commission be assigned to come up with names
for the Barge Terminal Property, Hersey Bean Property and Aiple Property.
Councilmember Menikheim again asked about the status of the signing of the contract for the
summer event and also of hiring the Event Coordinator. City Administrator Hansen replied there
is a meeting with The Locals on Tuesday, January 28 and he hopes to get the contract signed at
that time. He plans to finalize the Event Coordinator job description this week and get it
distributed.
Councilmember Weidner noted that the Planning Commission discussed moving its regular
meetings from Monday to Wednesday to provide additional time to review their packets.
Community Development Director Turnblad stated it could be moved to the second Wednesday
of the month, but the Commission may lose a person or two. He would like to talk again with
the Commission, and if they want to move it to Wednesday, he will bring it back to Council to
approve rescheduling.
Councilmember Weidner suggested the Council consider amending seasonal vending permit
regulations to give the City more aesthetic control over the type of trailer used. Community
Development Director replied that the issue could be brought to the Planning and Heritage
Preservation Commissions to discuss creating a design permit review process for temporary
vending carts.
Councilmember Menikheim inquired when the next Council retreat might be and City
Administrator Hansen replied that he will start trying to schedule a Council retreat.
Councilmember Polehna remarked that a retreat for Council to sit and talk is beneficial. Mayor
Page 5 of 6
City Council Meeting
January 21, 2014
Harycki encouraged Councilmembers to participate and clear calendars for the time of the
retreat.
Mayor Harycki stated at the next 4:30 Council meeting there will be discussion on the request
for extension of the Orderly Annexation Agreement to provide Council's decision to the Joint
Board.
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Motion by Councilmember Kozlowski, seconded by Councilmember Polehna, to adjourn the
meeting at 9:38 p.m. All in favor. /� --
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Diane F. Ward, City Clerk
Resolution 2014 -016, Approving Fiber Joint Powers Agreement between Washington
County and the City of Stillwater
Resolution 2014 -017, Approving license to use real property
Resolution 2014 -018, Approval of Forestry Consultant Contract for 2014
Resolution 2014 -019, 2014 Fee Schedule
Resolution 2014 -020, a resolution vacating a public right of way Block One (1) Thompson,
Parker and Mower's Second Addition to Stillwater
Ordinance 1063, an ordinance amending Chapter 56 of the Stillwater City Code, taxes and
assessments, Section 56 -5, Local Lodging Tax
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