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HomeMy WebLinkAbout2014-02-11 CC MIN • ater INF IINTMSLACF Of MINNESOTA CITY COUNCIL MEETING MINUTES February 11, 2014 REGULAR MEETING 4:30 P.M. Mayor Harycki called the meeting to order at 4:40 p.m. Present: Councilmembers Menikheim, Kozlowski, Weidner, Polehna, Mayor Harycki Absent: None Staff present: City Administrator Hansen City Attorney Magnuson Finance Director Harrison Police Chief Gannaway Fire Chief Glaser Community Development Director Turnblad Public Works Director Sanders City Clerk Ward OTHER BUSINESS Discussion on extension of Orderly Annexation Agreement Community Development Director Turnblad reviewed the history of the City's Orderly Annexation Agreement with Stillwater Township and that a Joint Board meeting is scheduled for February 19, 2014. Councilmember Menikheim asked what the benefit would be to Stillwater from extending the Agreement, and Mayor Harycki responded that the Agreement provides a forum to meet to discuss issues, get Township input as issues come up, and avoid litigation should a dispute arise. Councilmember Weidner stated he feels that extending the Agreement would limit the City's options for the next five years and felt there is no benefit to the citizens of Stillwater. Mayor Harycki felt that the benefit is that the City has not ended up in court in the 15-20 years that this Agreement has been in place. City Attorney Magnuson explained the protections that the Township would have, if the Agreement were extended: review of proposed zoning changes, variances and development proposals, and the differential tax rate would remain in effect for five years beyond the time when the last remaining property is annexed. The City is entitled to annex the remaining property any time after January 1, 2015. Councilmember Polehna pointed out that if allowed to sunset in 2015, the Agreement already runs five years longer, to 2020, so it truly is a 25-year Agreement. He stated that would be City Council Meeting February 11, 2014 comfortable exercising the City's right to sunset it, since the Township gets another five years of protection under the existing Agreement. Mayor Harycki felt there is benefit to sitting down with the Township and keeping the framework in place. Councilmember Weidner replied that the Council can meet with the Township at any time to discuss issues, but keeping this framework in place is of no benefit. He continued by stating that Stillwater Township are wonderful neighbors but that the Township should not have legislative or review authority over property in the City of Stillwater. Councilmember Menikheim noted that he feels obliged to uphold the Agreement as originally intended because there is no reason to change or extend it. If there had been a clear reason to change it in the past, there would have been an opportunity to do that. City Attorney Magnuson explained that state law entitles property that is annexed to a tax step- up at the rate of 20% per year for five years. The Orderly Annexation Agreement made it possible for properties that were annexed to remain at the rural taxing rate, even after five years, until they were developed. This was a way to prevent the great tax burden on property owners who were annexed against their wishes. At the time, the atmosphere was very contentious. Large rural landholders that are now Liberty, Legends, Millbrook, and Settlers Glen were clamoring to get into the City and there was a lot of pressure being brought on the City to try to annex all that property, leap-frogging over the land that would be between the City and those new developments. It is a totally different atmosphere now. Councilmember Weidner clarified that he thinks it has been a good Agreement and a great cooperative effort, but he does not find any benefit to the City to extend it. STAFF REPORTS Fire Chief Glaser provided safety tips for residents: clear snow-covered gas meters, call Xcel Energy if there is a problem; clear fresh air intakes; do not leave a vehicle idling in the garage; and please dig out fire hydrants. Community Development Director Turnblad reported that Vista Tech, which under a TIF agreement was required to have 35 full-time jobs by the January 31, 2015, has already exceeded that goal. Also, the RFP for a Master Park Plan Update was sent out with a March 21 deadline. The RFP for an Event Coordinator was sent out with a February 26 deadline. He hopes to bring proposals to Council's first meeting in March. Public Works Director Sanders informed the Council that the Middle St. Croix Watershed District received an $80,000 Clean Water Legacy Grant for work at Lily Lake. Also, Lake McKusick has been delisted by the MPCA, therefore it is no longer considered an impaired lake. ADJOURNMENT Mayor Harycki recessed the meeting at 5:07 p.m. RECESSED MEETING 7:00 P.M. Mayor Harycki called the meeting to order at 7:02 p.m. Page 2 of 7 City Council Meeting February 11, 2014 Present: Councilmembers Menikheim, Kozlowski, Weidner, Polehna, Mayor Harycki Staff present: City Administrator Hansen City Attorney Magnuson Finance Director Harrison Police Chief Gannaway Fire Chief Glaser Community Development Director Turnblad Public Works Director Sanders City Clerk Ward PLEDGE OF ALLEGIANCE Boy Scouts led the Council and audience in the Pledge of Allegiance. APPROVAL OF MINUTES Possible approval of January 21, 2014 regular meeting minutes Motion by Councilmember Menikheim, seconded by Councilmember Kozlowski, to approve the January 21, 2014 regular meeting minutes. All in favor. PETITIONS, INDIVIDUALS, DELEGATIONS & COMMENDATIONS Swearing In of Officer Hunter Julien Police Chief Gannaway swore in Officer Hunter Julien. OPEN FORUM There were no public comments. CONSENT AGENDA Resolution 2014-021, directing payment of bills Resolution 2014-022, approving access agreement with Lunda/Ames Resolution 2014-023, approving Exhibit A as it relates to Resolution 2013-057, resolution establishing procedures relating to compliance with reimbursement bond regulations under the Internal Revenue Code Resolution 2014-024, approving 2014 Special Event and Contract for Farmer's Market Possible approval to purchase a truck scale—Public Works Possible approval of Minnesota Ironman Bike Race Possible approval of temporary/seasonal employment of Community Service Officers and Parking Lot Attendants - Police Possible approval of temporary/seasonal employment of Maintenance Worker I—Public Works Motion by Councilmember Polehna, seconded by Councilmember Weidner, to adopt the Consent Agenda. Ayes: Councilmembers Menikheim, Kozlowski, Weidner, Polehna, and Mayor Harycki Page 3 of 7 City Council Meeting February 11, 2014 Nays: None PUBLIC HEARINGS Case No. SUP/2014-1. A public hearing to consider a Planning Commission recommendation of approval of a request to an amendment to a Special Use Permit for the expansion of an elementary school, a permitted special use located at 6355 Osman Avenue in the RA - One Family zoning district; and Case No. SUP/2014-2. A public hearing to consider a Planning Commission recommendation of approval of a request for an amendment to a Special Use Permit for the expansion of a junior high school, a permitted special use located at 523 Marsh Street in the RB - Two Family zoning district Community Development Director Turnblad reviewed Case No. SUP/2014-1 and Case No. SUP/2014-2 together. Oak Park Elementary School is requesting an approximately 2,300 square foot expansion to create a new, more secure entrance to the school. Stillwater Junior High School is requesting a 194 square foot expansion to create a new, more secure vestibule at the existing north entrance to the school. The Planning Commission unanimously recommended approval of both requests. Staff recommends approval of both amendments with the condition that each project shall be completed according to the plans on file with the Community Development Department. Mayor Harycki opened the public hearing for Case No. SUP/2014-1. There were no public comments. Mayor Harycki closed the public hearing. Mayor Harycki opened the public hearing for Case No. SUP/2014-2. There were no public comments. Mayor Harycki closed the public hearing. Motion by Councilmember Weidner, seconded by Councilmember Kozlowski, to adopt Resolution 2014-025, a resolution approving a Special Use Permit Amendment for Stillwater Area School District's Oak Park Elementary Vestibule Expansion, Case No. Sup/2014-1. Ayes: Councilmembers Menikheim, Kozlowski, Weidner, Polehna, and Mayor Harycki Nays: None Motion by Councilmember Kozlowski, seconded by Councilmember Weidner, to adopt Resolution 2014-026, a resolution approving a Special Use Permit Amendment for a vestibule expansion for the Stillwater Junior High School, Case No. SUP/2014-2. Ayes: Councilmembers Menikheim, Kozlowski, Weidner, Polehna, and Mayor Harycki Nays: None UNFINISHED BUSINESS Possible approval of BWBR proposal fee for fire station Community Development Director Turnblad presented a proposal from the Fire Station Design Team to complete design, bid the project and administer construction for $399,000. The $399,000 proposal, together with the $125,000 already spent on the "35%" design phase of the project, equals a total of $524,000. This total represents 8.2% of the estimated $6,384,784 construction cost of the Fire Station. Because the Fire Station project is more complicated than Page 4 of 7 City Council Meeting February 11, 2014 it would be if it were a free standing facility, and the building it will be attached to is a state/federal project, the extra 0.7% fee above the normal 7.5% seems reasonable. Staff recommends approval and will bring the contract to the March 4, 2014 Council meeting. Motion by Councilmember Polehna, seconded by Councilmember Menikheim, to approve the proposal fee from BWBR. Ayes: Councilmembers Menikheim, Kozlowski, Weidner, Polehna, and Mayor Harycki Nays: None NEW BUSINESS Discussion on bonding request for old Armory Mayor Harycki noted that the Governor has announced a disposition in this session for bonding for arts related projects, so the City may want to consider whether to go forward with a bonding request for assistance to purchase the old Armory. Councilmember Weidner asked if the City might seek legislation enabling purchase of the Armory for a reduced cost. If there is a possibility of purchasing the facility for a nominal cost, he would like to seek this first and then determine a use for the facility. If that does not work, then the City could try bonding. City Administrator Hansen stated he thinks the only problem is that the legislature does bonding early. He agreed to check with legislators for advice on which avenue to take, bonding or legislation. Possible approval of Sale of Bonds for Capital Outlay, Fire Station and Police Department Renovation City Administrator Hansen explained the bond sale. Rates are still at historic lows. Staff recommends moving forward. Councilmember Weidner stated he believes selling the $10 million in bonds is premature because plans are still incomplete. City Administrator Hansen replied that the City will have to bond for the remaining amount next year. The total combined cost of the fire station and police station renovation is estimated at $9 million. The reason the City will need to borrow $10 million is because it is also selling $1.5 million in capital equipment and the City can only go to a maximum of$10 million and still retain bank qualification. The risk in waiting is that rates will go up. He feels there is no downside in setting the bond sale for March 4. He thanked the Council for the questions and understands the apprehension. Councilmember Weidner remarked that he would like to see the final numbers before the City borrows the maximum amount of money. Councilmember Polehna asked why the City is bonding for the police station renovation now, when it is not going to do this project for two years, and City Administrator Hansen replied that there could be a future change in the Council, resulting in an unwillingness to proceed with the renovation project. The City has already put forward a big investment into this project. He also believes rates will go up between now and when the renovation begins Page 5 of 7 City Council Meeting February 11, 2014 Councilmember Weidner stated he fears over-borrowing. With the timing of the police station renovations, borrowing the money now does not make sense. He acknowledged there is a risk with a new Council, but he opposes borrowing more money than is projected to be spent in the next two years. Mayor Harycki pointed out the other advantage of borrowing now is that it allows maximum mobility - the City can mobilize shortly after the federal government does and be in the ground sooner. He believes the two projects should be tied together so they can both move forward. Councilmember Polehna stated he is in favor of moving ahead with the police station but would like to see the costs are clearer before borrowing for it. Mayor Harycki reminded the Council that that there is a layout and design for police department, although it is not 35%complete. Community Development Director Turnblad noted that design for the Police Department renovation will start within the year. City Administrator Hansen told the Council the $755,000 for the Police Department renovation could be pulled out of the bond sale documents, should the Council feel more comfortable doing so. Community Development Director Turnblad explained that in the last year and a half total project costs for the Fire Department have gone up 4% due to increase in construction costs. Councilmember Weidner asked how long it will be until the City gets a final design for the fire station, and Doug Wild, the construction consultant, responded that the projected final design of fire station should be completed around July/August. The final cost will be known after the bid packages come in - most likely later this fall, after 100% of the architectural documents are done. Motion by Councilmember Polehna, seconded by Mayor Harycki, to approve Resolution 2014-027, resolution providing for the competitive negotiated sale of General Obligation Capital Outlays Bonds Series 2014A, minus the police station amount, or$10,000,000 less $755,000. Ayes: Councilmembers Menikheim, Kozlowski, Polehna, and Mayor Harycki Nays: Councilmember Weidner COUNCIL REQUEST ITEMS Mayor Harycki conveyed compliments received from staff of Representative McCollum that the streets are in great shape. He commended the Public Works Department. City Administrator Hansen reported that The Locals had some difficulties with some sections of the event contract. He sent a revised contract to them about a week ago but has not heard back yet. He will inform them that the Council is anxious for a signed contract. Councilmember Polehna noted that the Council should come up with a Legislative Agenda and schedule a session with its legislators. Community Development Director Turnblad remarked that one possible agenda item for the Legislature might be an extension of the TIF extension that allowed the City to pool monies for façade improvements. Page 6 of 7 City Council Meeting February 11, 2014 Councilmember Polehna reported that the current Chair of the Yellow Ribbon Program will be will be temporary stepping down in the near future. He p y Chairman but he felt Councilmember Kozlowski would be good at coordinating this due to his extensive computer experience. ADJOURNMENT Motion by Councilmember Kozlowski, seconded by Councilmember Weid - - to adjourn the meeting at 8:08 p.m. All in favor Af/ Ken Haryc, ' ayor ATTEST: Q: Diane F. Ward, City Clerk Resolution 2014-021,directing the Payment of Bills Resolution 2014-022, approving Access Agreement with Lunda/Ames Joint Venture Resolution 2014-023, approving Exhibit A as it relates to Resolution 2013-057, resolution establishing procedures relating to compliance with reimbursement bond regulations under the Internal Revenue Code Resolution 2014-024, approving Special Event and Contract Farmer's Market Resolution 2014-025, a resolution approving a Special Use Permit Amendment for Stillwater Area School District's Oak Park Elementary Vestibule Expansion, Case No. Sup/2014-1 Resolution 2014-026, a resolution approving a Special Use Permit Amendment for a vestibule expansion for the Stillwater Junior High School, Case No. SUP/2014-2 Resolution 2014-027,resolution providing for the competitive negotiated sale of General Obligation Capital Outlays Bonds Series 2014A Page 7 of 7