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HomeMy WebLinkAbout2014-09-16 CC MIN i 1'Water THE OIIITMOLACE Of MINNESOTA CITY COUNCIL MEETING MINUTES September 16,2014 REGULAR MEETING 7:00 P.M. Mayor Harycki called the meeting to order at 7:00 p.m. Present: Councilmembers Menikheim, Kozlowski, Weidner, Polehna, Mayor Harycki Staff present: City Administrator Hansen City Attorney Magnuson Community Development Director Turnblad Police Chief Gannaway Deputy Fire Chief Ballis Public Works Director Sanders 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 Kozlowski, seconded by Councilmember Polehna, to approve the September 2, 2014 regular and recessed meeting minutes. All in favor. PETITIONS, INDIVIDUALS, DELEGATIONS & COMMENDATIONS Certificate of Appreciation: McKusick Lake Pier - McKusick Lake Water Association, Sunrise & Noon Rotary Club Mayor Harycki presented Certificates of Appreciation to Bruce Werre, McKusick Lake Water Association; Molly O'Rourke, Noon Rotary; and Steve Madson, Sunrise Rotary, for assistance with funding, development and construction of a fishing pier on McKusick Lake. Presentation- Pollinator Friendly Community - Laurie Schneider Laurie Schneider and Marcie Forsberg, beekeepers, stated a group of concerned people and organizations from in and around Stillwater want to help create a healthy and safe environment for pollinators. They would like to encourage public education and awareness,planting pollinator- friendly plants, and creating safe havens for pollinators by developing a pest management system that has safe alternatives to harmful pesticides. Andrea Rustad, Stillwater High School student, told the Council the youth in the community are ,' very concerned about the health of pollinators. City Council Meeting September 16, 2014 Lex Horan, Pesticide Action Network, explained why the pollinator population is declining. Dr. Vera Krischik, Professor of Entomology, Agricultural and Natural Resource Sciences at the University of Minnesota, reviewed the main contributors to bee decline and the effects of neonicotinoid insecticides. These are in many common homeowner pesticides. Councilmember Menikheim thanked the group for their presentation. He suggested staff be asked to work on an ordinance regulating use of neonicotinyls. Councilmember Polehna indicated that he has learned the problem affects a lot more than the local area. It needs to go to a higher level, involving major retailers and others outside the community, and Ms. Horan responded that regulatory agencies have not yet caught up with science to take actions needed. Education needs to involve state and federal decision makers. Mayor Harycki recessed at 7:40 p.m. Mayor Harycki reconvened the meeting at 7:45 p.m. OPEN FORUM Susie Sanderson, 304 N. 3rd Street, stated the library is the worst neighbor she has ever experienced. She expressed concerns about the outdoor night club atmosphere and blocked driveway every weekend. She has spoken with Police Chief Gannaway about the noise and other issues,but nothing happened and staff ignores the issues. She requested that enforcement be done and she feels that she should not call 911 when these occurrences happen. Councilmember Kozlowski remarked he has witnessed the problems. The Council needs to remedy the problem. Councilmember Menikheim stated he will talk to the Library Board about the concerns expressed. Jerry Helmberger, 303 Fourth St.N.,echoed the concerns about noise.He has communicated with Library Board members. He believes neighbors are now considered bothersome neighbors that cannot be satisfied, which is not true. There are simple solutions to the noise issue. Some of the responses from City staff have been frustrating. Police Chief Gannaway stated Washington County stated that all calls whether non-emergency or emergency have to be sent through the 911 system per Washington County policy and requested that Ms. Sanderson call 911 when these situations are happening... Mr. Helmberger expressed a concern about transient houses, that are not licensed, that allow overnight rental - air Bed and Breakfasts (B & Bs). He believes they should pay the lodging tax and be licensed and subject to all applicable ordinances. Councilmember Kozlowski suggested the Convention and Visitor Bureau might help develop regulations for air B & Bs. STAFF REPORTS City Clerk Ward informed the Council that the Name the Park Contest has 209 entries and ends September 17th at midnight. Community Development Director Turnblad noted that staff is still working on purchasing the remnant of the Palmer property,near County Road 15 and Highway 96,from Washington County. Page 2 of 10 City Council Meeting September 16, 2014 Public Works Director Sanders reported that street improvements have started. The contractor is considering doing night construction,which will have less impact on traffic,but may violate night noise ordinances. He requested Council permission to continue talking with the contractor about the project. Council consensus was to allow night construction. City Administrator Hansen noted that Washington County is still in negotiation for the purchase of the Aiple Property. The property owners have requested naming rights for all or a portion of the property to be named after the former owners of the property (Aiple). Councilmember Weidner commented he would not favor this, but does not know if it could be considered a deal breaker. City Administrator Hansen then pointed out that Log Jam owes the City approximately $7,000, but he expects this will be reduced. CONSENT AGENDA Resolution 2014-148, directing payment of bills Possible approval of sanitary sewer adjustments Possible approval to purchase switch for Public Works—MIS Possible approval to purchase firewalls for Parking Ramp, Recreation Center, Lily Lake Arena and City Hall Resolution 2014-149, approving issuance of Sunday Taproom Liquor License to Maple Island Brewing, LLC, DBA: Maple Island Brewing Possible approval of capital release request—Library Possible approval of Special Event - Lift Bridge Beer Run Possible approval of temporary liquor license- Valley Chamber Chorale, December 12, 13, and 14, 2014 Motion by Councilmember Weidner, seconded by Councilmember Kozlowski, to adopt the Consent Agenda. Ayes: Councilmembers Menikheim, Kozlowski, Weidner, Polehna, Mayor Harycki Nays: None PUBLIC HEARINGS Case No. 2014-27. A public hearing to consider a request by Sheryl Jespersen for approval of a Bed and Breakfast to be located at 1005 William St N,located in the RB: Two-Family Residential Zoning District. Sheryl Jespersen, applicant. Mayor Harycki opened the public hearing. Motion by Councilmember Kozlowski, seconded by Councilmember Polehna, to continue the public hearing and table Case No. 2014-27 to the October 7, 2014 meeting as requested by the applicant. All in favor. Page 3of10 City Council Meeting September 16, 2014 Case No. 2014-28. A public hearing to consider a request by Renee Haugen for approval of a Bed and Breakfast, and variances associated thereof, to be located at 116 Harriet Ave, located in the RB: Two-Family Residential Zoning District. Renee Haugen,applicant. Community Development Director Turnblad reviewed the request that the applicant has not purchased the home, but has permission from the property owner to apply for the B & B. Three guest rooms are proposed. Proposed additions will bring the square footage to about 3,300, meeting the size requirement for three guest rooms. Three parking spaces are required, plus two parking spaces for the owners. Installation of a three stall parking surface is proposed. A variance to the ordinance requiring at least 900' between B &Bs is requested. Staff recommends approval of the Special Use Permit (SUP) and the 900' buffer variance, with conditions recommended by the Planning Commission: • The maximum number of guest rooms will be limited to one, until construction of additions to the structure that increase the square footage to at least 3,000 sq. ft. are completed. Then the maximum number of guest rooms shall be limited to three. • The owner must generally be on-site when guests are in the home. • Guests may not be served lunch or dinner from the B & B's kitchen, only breakfasts. • Guests may stay no longer than a week at a time. • Registered guests must park in the designated off-street parking area. • Plans shall be submitted to,and reviewed by,the Fire Marshal and the Building Official before the SUP becomes effective. • Plans for exterior additions and/or significant alterations shall be reviewed by the Heritage Preservation Commission (HPC) for consistency with the Secretary of the Interior's Standards for Rehabilitation. • An all-weather parking lot for three vehicles must be constructed wholly onsite. The grading and snow storage plan for the parking lot must be approved by the City Engineer prior to beginning construction. • Prior to installing an exterior sign,it must be reviewed and approved by the Community Development Department. • Prior to constructing the parking lot,the owner must submit an exterior lighting plan to the Community Development Department for review and approval. • An annual fire code inspection shall be allowed by the owner. • Carbon monoxide detectors and smoke detectors must be hard wired, rather than operated with batteries, and must be completed before the SUP will become effective. • The owner must make application to the County Health Department for a license to operate the B &B. The license must be issued and a copy filed with the City before the SUP will become effective. • The owner must provide the City Finance Director with the B & B's Tax ID number before the SUP will become effective. • Lodging guest quiet hours must be observed between 10 pm and 8 am. Page 4 of 10 City Council Meeting September 16, 2014 • The permit shall only be effective upon the sale of the property to Ms. Renee Haugen. Mayor Harycki opened the public hearing. Jim McKinney, 410 W. Rice St., directly across the street from the proposed B & B, noted there was considerable discussion at the Planning Commission hearing about the number of guest rooms proposed. The initial recommendation of staff was for five guest rooms, which would not comply with the ordinance. There was no documentation of discussion from the HPC. He questions whether this is an appropriate site for a B & B. The B & B ordinance clearly states that the SUP process is simply to provide a path to preserve historically and architecturally significant homes too large for today's families,not to expand the size of a home so it becomes economically viable. He has no doubt Ms. Haugen would be a great neighbor, but is not fond of the business plan. He urged the Council to deny the permit because the dead end of Rice St. has no sidewalks, there are lots of kids who play on streets and the addition of significant number of new cars would be a problem. He would not enjoy looking out his window seeing a parking lot across the street. He is fearful of any business being introduced on that bluff line as one more intrusion into the residential area. Community Development Director Turnblad responded the HPC will review any remodeling or additions proposed. The ordinance states the HPC will review the proposal to determine the number of guest rooms. This has not been done yet. John Mclndoe, 115 N. Harriet St., stated he is eager to see the property restored to its previous condition. His concerns focus on safety issues related to the uncontrolled intersection, the steep hill on Harriet, and the parking plan which he feels destroys the backyard and interferes with several underground utilities. He asked if the property is purchased by Ms. Haugen, but not developed into a B & B and later sold, would it be eligible for development as a future B & B? Carol McKinney, 410 W. Rice St., asked the Council why it has ordinances that are not enforced. The neighborhood was not informed adequately of the proposed plans. Neighborhood concerns seem to be secondary to the promoting of business in the neighborhood. Staff seems more supportive of the applicant than the residents, which seems wrong. Madeline Mclndoe, 115 N. Harriet St., stated she would prefer to see exact plans for parking. If the applicant does not buy it, she would prefer for the property to remain RB two family. She asked how many years the applicant would be allowed to make the additions necessary to have more than one guest room. She also asked if it never functions as a B &B, is it still able to be sold as a bed and breakfast?Many issues are not really clear in this request. The neighborhood is tight- knit, so it is hard to see a major change without the neighborhood becoming comfortable with it. Community Development Director Turnblad replied the Planning Commission's recommended conditions of approval state the permit shall only be effective on the sale of the property to Ms. Haugen. If she purchases it but never uses it as a B & B, the unused SUP expires after one year. City Attorney Magnuson added that state law dictates that a SUP usually runs with the land. It is very unusual to have the land use issue dependent on the identity of a particular owner. Tom Lynum, Sauntry Mansion B & B, 626 4th Street N, pointed out that the B & B SUP is not transferable. B & Bs also are subject to County health regulations and fire codes - they are all intertwined. Alice Columbo, 215 N. Harriet St, stated she wants the property to remain as it is. She urged the applicant to move in and live there. Page 5 of 10 City Council Meeting September 16, 2014 Renee Haugen, applicant, stated she does not want to upset the neighbors. The City Planner did not help her fill out the application, but provided guidance. She is as concerned about traffic as are neighbors, however this would be a three bedroom B &B which would not generate as much traffic as if she had lots of kids and their friends visiting all the time. She feels she would be a really good neighbor,her intentions are good. She has the ability to make the home more beautiful than it is today. If it becomes a hostile environment for her to move into, that would not be good for anyone either. She would like to see a stop sign installed, but also would like to see children play away from the streets as there is a steep incline. Michelle Cherrier, 418 Rice St. W., spoke against the proposal. She loves the neighborhood because it is so quiet. There are no sidewalks, Rice St. is narrow and has little room for snow storage. Michael Obermueller, 201 Martha St. N., spoke about traffic issues. The density of children is high. Most existing B & Bs are on main thoroughfares. Commercialization of a property in this neighborhood will alter the essential character of the neighborhood. Steve Walquist, 121 N. Martha St., stated the neighborhood is close-knit and very inclusive. He questioned whether three parking spaces would be adequate as couples may have two cars. He would like to keep the neighborhood residential and does not feel it is the place for a commercial operation. Jerry Helmberger, Aurora Staples Inn, stated he likes the 900' buffer requirement. Patricia Sawyer, 108 N. Harriet St., stated why have ordinances if they are not followed. It is a tight-knit neighborhood. She is concerned for safety of children in the area and would not like to see the B & B. Mayor Harycki closed the public hearing. Mayor Harycki stated he has a problem considering the 900' buffer with other B & Bs. The proposed site is closer to Rivertown Inn and Aurora Staples than 900'. The radius was established for a reason. The neighbors have a point and he feels the Council should deny the SUP. Councilmember Kozlowski agreed the 900' buffer was set for a reason. Traffic concerns are something the neighborhood will have to deal with whether it is a B & B or any other property. He is surprised that the plans to rehabilitate the property are not more appealing to neighbors. He would like to support the proposal, but also sees the reason for the 900' buffer. Councilmember Menikheim commented an ordinance is an ordinance. There is a risk to the neighborhood with an unknown entity coming in suggesting a change. He urged the applicants to fix it up before applying for the SUP, and while it is being fixed up, become familiar with the neighborhood. Councilmember Weidner stated he feels the proposal fits the characteristics of the ordinance, but there is not enough information on the specifics. He would like to see the HPC comments after they review it. Councilmember Kozlowski noted if it were large enough in its original form to sustain a B & B it would be hard for him to deny,but enlarging a smaller home to make it fit the ordinance makes it harder for him to support. Councilmember Polehna stated he has heard only one complaint on B & Bs in his tenure on the Council and feels that thee fear factor gets exaggerated. He would be more worried about the Page 6 of 10 City Council Meeting September 16, 2014 bicycle traffic in the neighborhood when the trails open. He also would like to hear input from the HPC. Community Development Director Turnblad reminded the Council the HPC would review the proposal for the number of rooms. Councilmember Kozlowski commented one difficulty is that the proposal deals with a hypothetical space before it is increased to the size needed for the number of rooms being requested. Community Development Director Turnblad noted that exterior additions on B & Bs need to be reviewed by the HPC. Architectural plans have not been drawn yet so there is nothing for them to review. He continued by stating that this is a Catch-22 is if the SUP is not going to be issued,then the applicant will be wasting money on architectural plans. He stated that currently, the existing home would be allowed one guest room. Mayor Harycki reminded the Council the street is very narrow. With snow there, it would be tighter. The City has an ordinance requiring at least 900' between B & Bs for a reason. Councilmember Weidner echoed that the 900' buffer is there for a reason but there is a variance process. Councilmember Menikheim remarked his concern is not about the 900' buffer variance,it is about being asked to approve the SUP on a promise,not an entity. He urged the applicant to come back and ask for the SUP after the work of the additions has been done. Councilmember Polehna stated that it wouldn't make sense for the applicant invest the money without knowing if she would obtain the SUP. Community Development Director Turnblad reminded the Council that the Planning Commission recommendations state if it opened today, it could only have one guest room. As proposed additions are added, enough space could be added to have a total of three guest rooms. The maximum number of guest rooms is set by the number of bedrooms original to the house as well as square footage of the house and the lot size. Ms. Haugen told the Council the house has to have square footage added to make it livable. She is not looking to add bedrooms, but adding amenities that make it viable. Mr. Walquist commented the house sits on a prime piece of property and felt if the request is not approved, someone will buy it and restore it to something everyone can be proud of. His opinion was that a B & B is not the only option for this house. Mayor Harycki reiterated he is against the proposal. Motion by Councilmember Weidner, seconded by Councilmember Polehna,to approve the resolution for a SUP with conditions recommended by staff, as a one guest room B &B,requiring any additions to be approved by the HPC, and with the HPC also to confirm the original number of bedrooms as relate to the ordinance. Ayes: Councilmembers Weidner, Polehna Nays: Councilmembers Menikheim, Kozlowski, Mayor Harycki Page 7 of 10 City Council Meeting September 16, 2014 UNFINISHED BUSINESS Proposed plan for the removal of the Zephyr train City Attorney Magnuson summarized what has happened over the last two weeks. He talked to representatives of the Minnesota Transportation Museum who stated the train and vehicles have no value to them, only salvage value. A train collector from Utah, with a locomotive repairman and engineer from Atlanta, examined the trains and determined installing knuckles to move them like rail cars would cost approximately $100,000 which is not feasible. Their value is in salvage only, to be parted out on site. Mr. Paradeau stated yesterday that he has to secure a release from the people he sold the trains to. The trains could be parted out on site which would take 1-2 weeks. He recommended waiting till the next meeting to take further action. Councilmember Menikheim stated he would like to have the trains gone before the trail opening ceremony. Councilmember Weidner asked about the cost of moving the trains to a rail yard elsewhere and whether those costs could be assessed. Parting them out is not the City's issue. City Attorney Magnuson replied the costs of moving the trains could probably be assessed because appropriate notices have been sent. He will see whether the Minnesota Transportation Museum can help find a spot for the trains and will update the Council at the next meeting. Possible approval of extension agreement with Stillwater Caves LLC City Attorney Magnuson explained he emailed the addendum for Stillwater Caves LLC to the developers' lawyer on September 4 for signatures, but has not heard back yet after several emails and phone calls. He was told the developers are trying to confirm whether Central Bank has any objection to what was proposed in the addendum. Mayor Harycki asked what could the bank object to? He is getting uncomfortable with the developer missing deadlines, and is not interested in extending the agreement. Councilmember Kozlowski agreed the issue seems more challenging than it should be,but he sees no harm in extending the agreement. City Attorney Magnuson clarified the Council has granted the extension to December 31, 2014. What the developers have not done is sign the addendum, so they may think the signature is all that is needed. Councilmember Menikheim suggested giving the developers one more try and telling them it is the last chance to go forward with the project. Councilmember Weidner pointed out if the Council did not state that the addendum had to be signed by the next meeting, he does not believe the Council can revoke it. City Attorney Magnuson agreed to inform the developers that the addendum must be signed by the next meeting. NEW BUSINESS Possible approval of Special Meeting for General Election Canvasing Board City Clerk Ward explained a special meeting needs to be set for the municipal part of the election. She recommends meeting Thursday,November 13 at 8 a.m. Page 8of10 City Council Meeting September 16, 2014 to hold a general Motion byCouncilmember Menikheim, seconded byCouncilmember Kozlowski, election canvasing board meeting November 13 at 8 a.m. All in favor. Possible approval of first reading of an Ordinance Amending the Stillwater City Code, Chapter 31, Indexing Zoning Ordinance by Adding Cost of Construction to the Design Permit Valuation Threshold Community Development Director Turnblad presented a draft ordinance that would index the valuation of a design permit. Mayor Harycki suggested defining the standards adding the actual index used. Community Development Director Turnblad stated staff can add the reference for the second reading. Motion by Councilmember Kozlowski, seconded by Councilmember Menikheim,to approve the first reading of an Ordinance Amending the Stillwater City Code, Chapter 31, Entitled Zoning Ordinance by Adding Cost of Construction Indexing to the Design Permit Valuation Threshold. Ayes: Councilmembers Menikheim, Kozlowski, Weidner, Polehna, Mayor Harycki Nays: None Possible adoption of resolutions: a) adopting the proposed tax levy for the payable year 2015; b) adopting the proposed budget for the year 2015; c) setting payable 2015 Truth-in-Taxation meeting date Finance Director Harrison presented the resolutions for approval. Councilmember Menikheim asked whether the reduction of the item for Event Coordinator from $39,000 to $10,000 could be revisited. City Administrator Hansen replied the Council may revisit the allocation, but increasing it would necessitate moving funds from another part of the budget. Motion by Councilmember Polehna, seconded by Councilmember Weidner, to adopt Resolution 2014-150, adopting the proposed tax levy for the payable year 2015. Ayes: Councilmembers Menikheim, Kozlowski, Polehna, Weidner, Mayor Harycki Nays: None Motion by Councilmember Weidner, seconded by Councilmember Menikheim, to adopt Resolution 2014-151, adopting the proposed budget appropriations for the year 2015. Ayes: Councilmembers Menikheim, Kozlowski, Polehna, Weidner, Mayor Harycki Nays: None Motion by Councilmember Weidner, seconded by Councilmember Kozlowski, to adopt Resolution 2014-152, setting payable 2015 Truth-In-Taxation public meeting date. Ayes: Councilmembers Menikheim, Kozlowski, Polehna, Weidner, Mayor Harycki Nays: None Page 9 of 10 City Council Meeting September 16, 2014 COUNCIL REQUEST ITEMS Councilmember Polehna noted that the Hunt for Troops is scheduled for November 1. So far over $13,000 has been raised and field sponsors are still needed. Councilmember Menikheim notified the Council that a documentary by the filmmaker the Council is considering engaging to do a film about Stillwater will have a showing at the library. It is a film about Thurgood Marshall. ADJOURNMENT TO EXECUTIVE SESSION Motion by Councilmember Menikheim, seconded by Councilmember Polehna, to adjourn the meeting at 10:04 p.m. to executive session for City Administrator performance review. All in favor. Ken 'fyc iAI-ayor ATTEST: Diane F. Ward, City Clerk Resolution 2014-148, directing payment of bills Resolution 2014-149, approving issuance of Sunday Taproom Liquor License to Maple Island Brewing, LLC, DBA: Maple Island Brewing Resolution 2014-150, adopting the proposed tax levy for the payable year 2015 Resolution 2014-151, adopting the proposed budget appropriations for the year 2015 Resolution 2014-152, setting payable 2015 Truth-in-Taxation Public meeting Page 10 of 10