HomeMy WebLinkAbout2015-02-03 CC MIN illwater
TME 71OTNIl1LE Of MINNESOTA
CITY COUNCIL MEETING MINUTES
February 3,2015
REGULAR MEETING 4:30 P.M.
Mayor Kozlowski called the meeting to order at 4:30 p.m.
Present: Councilmembers Menikheim, Weidner, Polehna, Mayor Kozlowski
Absent: None
Staff present: Interim City Administrator/Public Works Director Sanders
City Attorney Magnuson
Community Development Director Turnblad
Finance Director Harrison
Police Chief Gannaway
Fire Chief Glaser
City Clerk Ward
OTHER BUSINESS
Fire Station Update - Chief Glaser and John Huenink, Kraus-Anderson
Fire Chief Glaser gave a presentation on the Fire Station progress.
John Huenink, Kraus-Anderson, informed the Council that the budget has not changed. Fifty
percent of the $130,000 contingency funding has been used.
Gary Zifko,Kraus-Anderson project manager, stated that the project is about at the halfway mark
and set for June completion.
Fire Chief Glaser added that he is not sure when the Department will be able to move. Armory
construction is a few months behind, so the transition may take several weeks.
Councilmember Weidner suggested communicating with Armory representatives to ensure that
completion of the Armory construction does not impede the Fire Station moving and operations.
Community Development Director Turnblad stated that he has communicated with the
representatives in the past and is monitoring the construction agreements.
Discussion of 2015 Rate Schedule - Water Department
Adam Nyberg, Water Board Member, explained the proposed rate structure. Water use is
decreasing overall,but costs are increasing due to aging infrastructure.A study was done to review
expenses and look at surrounding communities' rates. The Water Board is proposing a flat rate
charge of$16 per quarter for residential/commercial (no water included) with $1.80 winter/$1.95
summer per 1,000 gallons.
City Council Meeting February 3, 2015
Councilmember Weidner asked about impacts of the additional approximately $300,000 revenue
on the Water Board's budget and why the increase is needed. Mr. Nyberg replied that the Water
Department is not able to balance the budget currently; it is eating up reserves. He offered to
provide more detailed information for the Council.
City Attorney Magnuson pointed out that legally,the Water Department may not charge any more
than is reasonable to provide the service.
Councilmember Polehna pointed out the average citizen may not understand the rate change so
they should be educated about the change.
Councilmember Menikheim pointed out that the level of service provided by the Water
Department is high. Infrastructure is wearing out. Main breaks cannot be predicted and there has
to be funding in place. A rate increase is needed.
STAFF REPORTS
Police Chief Gannaway reported that the Police Department is officially responding to all calls
for service in the new annexation area.
Fire Chief Glaser stated that last Friday the Fire Department responded to a vehicle fire and a
sprinkler-controlled fire.
City Clerk Ward informed the Council that Waste Management will start collecting trash from
residents in the new annexation area in mid-March. She indicated to Council that a letter and
packet of information including an up to date residents' guide was prepared and distributed to the
new residents of the annexed area.
Public Works Director Sanders noted that on February 12 there will be a neighborhood meeting
to discuss the 2015 street project. Also, Homeland Security Emergency Management will
reimburse the City $53,000 for 2014 flood costs.
RECESS
The meeting went into recess at 5:14 p.m.
RECESSED MEETING 7:00 P.M.
Mayor Kozlowski called the meeting to order at 7:00 p.m.
Present: Councilmembers Menikheim, Weidner, Polehna, Mayor Kozlowski
Absent: None
Staff present: Interim City Administrator/Public Works Director Sanders
City Attorney Magnuson
Finance Director Harrison
Police Chief Gannaway
Fire Chief Glaser
Community Development Director Turnblad
City Clerk Ward
Page 2 of 10
City Council Meeting February 3, 2015
PLEDGE OF ALLEGIANCE
Mayor Kozlowski led the Council and audience in the Pledge of Allegiance.
APPROVAL OF MINUTES
Possible approval of January 12, 2015 special meeting minutes and January 20, 2015 regular and
recessed meeting minutes.
Motion by Councilmember Polehna, seconded by Councilmember Weidner, to approve the January
12, 2015 special meeting minutes and January 20, 2015 regular and recessed meeting minutes. All in
favor.
OATH OF OFFICE FOR NEWLY APPOINTED MEMBER OF COUNCIL
City Clerk Ward gave the oath of office to newly appointed Councilmember Junker.
Councilmember Junker stated he is excited to represent the citizens and the City of Stillwater.
RECESS
The meeting went into recess at 7:05 p.m.
The meeting reconvened at 7:30 p.m.
Present: Councilmembers Menikheim, Junker, Weidner, Polehna, Mayor Kozlowski
Absent: None
Staff present: Interim City Administrator/Public Works Director Sanders
City Attorney Magnuson
Finance Director Harrison
Police Chief Gannaway
Fire Chief Glaser
Community Development Director Turnblad
City Clerk Ward
PETITIONS, INDIVIDUALS DELEGATIONS & COMMENDATIONS
There were no petitions, individuals, delegations or commendations.
OPEN FORUM
Jim Herbert, 630 North Main Street (Terra Springs) and board member at Mulberry Point Yacht
Harbor, 639 North Main Street, expressed concern about the reduction in available parking area
for members of the Mulberry Yacht Club, with the paving of the parking lots and discussion of
making them pay lots. They would like some type of parking for the yacht club and are willing to
pay a reasonable fee to park.
Marty Nora, 625 5th Street North,board member at Mulberry Point Yacht Harbor,concurred with
Mr. Herbert.
Page 3 of 10
City Council Meeting February 3, 2015
CONSENT AGENDA
Resolution 2015-024, directing payment of bills
Possible approval to replace 1989 Water Tender— Fire
Possible approval to purchase a RAD 57 CO Monitor—Fire
Resolution 2015-025, resolution to modify the Tax Increment Financing Plan of Tax
Increment District 11
Possible approval to purchase ATV— Police Department
Resolution 2015-026, approving annexation development fees
Resolution 2015-027, approving fire protection contract with the Town of May
Resolution 2015-028, approving license to use real property - Washington County
(Hazardous Waste Day)
Resolution 2015-029, a resolution approving the abatement of certain special assessment
Motion by Councilmember Weidner, seconded by Councilmember Junker, to adopt the Consent
Agenda.
Ayes: Councilmembers Menikheim, Junker, Weidner, Polehna, Mayor Kozlowski
Nays: None
PUBLIC HEARINGS
A public hearing to consider a request by Thad Rich of Richlind to approve a 10 lot residential
preliminary plat, rezoning to RA, One-Family Residential and a setback variance, all for property
located at 13310 Boutwell Road North.
Mayor Kozlowski opened the public hearing and noted that the developer is revising the submitted
plat.
Motion by Councilmember Weidner, seconded by Councilmember Polehna, to table Case No.
SUB/2014-39 to a future meeting. All in favor.
UNFINISHED BUSINESS
Possible approval of second reading of Ordinance 1072 entitled an ordinance amending City Code
Section 51-2, relating to parking regulations (Commercial Parking Downtown).
Community Development Director Turnblad explained that on January 20, 2015 the Council
approved the first reading of Ordinance 1072, with the understanding that trailer parking would
be allowed by resolution in Municipal Lot 12 (between The Lofts and the Zephyr Depot) and in
Bridgeview Park until development of the park precludes parking. The final draft of the ordinance
is identical to the version approved in the first reading, which prohibits contractor equipment
parking anywhere downtown. It also prohibits boat and other trailer parking "except in areas
specifically designated" for it.
Motion by Councilmember Weidner, seconded by Councilmember Menikheim, to adopt Ordinance
1072,an ordinance amending City Code Section 51-2,relating to parking regulations and Resolution
2015-030, resolution designating spaces where trailers and their attached tow-vehicles are permitted
to park downtown.
Ayes: Councilmembers Menikheim, Junker, Weidner, Polehna, Mayor Kozlowski
Nays: None
Page 4 of 10
City Council Meeting February 3, 2015
NEW BUSINESS
Update on the 2015 Log Jam Contract
Community Development Director Turnblad reported that The Locals have met with City staff
and have paid the remaining invoice balance for City services rendered during the 2014 Stillwater
Log Jam. He explained the primary proposed contract changes for 2015 in the areas of: 1)
Financial Assurances; 2) City Percent of Ticket Sales; 3) Sanitation; 4) "Umbrella" Events; 5)
City Parking Lots; and 6) Schedule of Deadlines.
Councilmember Polehna expressed his biggest concern is that The Locals meet designated
timelines, and Mr. Turnblad replied that the schedule of deadlines is much more detailed this year
than it was last year.
Councilmember Junker suggested designating one point person responsible for enforcement of
the deadlines, and Mr. Turnblad replied that is included this contract.
On a question by Councilmember Menikheim about why the amount of the deposit is not specified
in the proposed contract, Mr. Turnblad responded that as written,the contract provides flexibility
to set a deposit amount that works. City staff is now recommending $30,000, which would be
more than enough if the event is similar to 2014. The Council may discuss the recommended
amount further when staff brings the contract back. The contract includes a deadline of May 1 for
submitting the deposit.
Councilmember Menikheim stated he would like to see specific dates included for deadlines,
rather than just the month. Community Development Director Turnblad replied that for some of
the deadlines, a time window is needed because there are lots of moving parts.
Councilmember Junker pointed out the contract states that the City prefers the event to be held in
parks rather than parking lots, but that parking lots are still available. He hopes the intent is to
utilize the parks as much as possible rather than the parking lots. Mr. Turnblad acknowledged
both Council and Parking Commission concerns about use of parking lots for events. Log Jam is
a large enough event that it likely cannot be contained in the parks, but staff will make it clear
that the City prefers it would be in the parks. The final site plan is due in June. By then, it should
be evident whether flooding impacted the parks. If the parks cannot handle all events then there
are certain lots that could be used.
Councilmember Menikheim added that there were problems with reporting to the City last year.
He asked if The Locals could bring monthly status reports to the Council, and Mr. Turnblad
responded the contract requires a monthly status report be provided to the City Administrator. In
addition, The Locals could give the Council a brief update.
Brad Glynn, The Locals, noted they have been meeting with City staff to fine tune the contract.
There are no deal-breaker issues. They feel after a year they have a good sense of how the event
will go. Currently they are sending out registrations for the Log Jam Derby, setting up the fishing
contest and lumberjack show.
Councilmember Menikheim asked how many sponsors are lined up so far, and Mr. Glynn replied
that there are several sponsors who have indicated willingness to participate again.
Councilmember Menikheim commented that it is helpful to know there are sponsors lined up and
cash reserves to make the event financially viable. He wished The Locals luck again.
Page 5 of 10
City Council Meeting February 3, 2015
Mayor Kozlowski commented The Locals did a great job raising funds and making it a sustainable
event. He thanked them for all their hard work.
Councilmember Weidner addressed Councilmember Menikheim's concerns about 2014.He feels
the City had an event coordinator in place to do exactly what she did, to help shepherd a new
group through the process. He trusts staff and does not want to get involved in the production of
the event.He trusts the new City Administrator will inform the Council about progress of planning
the event and looks forward to a smooth run this year.
Community Development Director Turnblad stated he will bring back the contract for Council
action in two weeks.
Possible 1st reading of Ordinance 1073, Electric Franchise Ordinance, Ordinance 1073A,
Implementing an Electric Service Franchise Fee, Ordinance 1074 Gas Franchise Ordinance and
Ordinance 1074A, Implementing a Gas Service Franchise Fee
City Attorney Magnuson explained that when the NSP Franchises were last renewed in 2003,the
City enacted a Franchise Fee. This fee has been made part of the City budget since that time, and
in order to maintain the fee without lapses, it will be necessary to renew both the Gas and Electric
Franchises during the month of February. The proposed drafts, if approved by both a first and
second reading this month, will ensure that the stream of franchise fees will continue without
interruption. The one issue that has been vetted in these discussions is whether NSP can be
charged for costs associated with the undergrounding of electrical lines in the Downtown. Staff is
satisfied that there is no legal way to compel NSP to bury the lines at its expense. A process is in
place however, to request a City Facilities Surcharge (CRFS) that can be added to the existing
fees. The allowable surcharge can be up to $4.50 per month for residential, and up to four times
that much for large commercial users. The surcharge can remain in place for up to five years. In
order to implement the CRFS, a special process must be initiated by the City.
Interim City Administrator Sanders stated that a preliminary estimate of costs to underground
utilities in the downtown area is $1.5 million.Xcel Energy is willing to work with the City to find
funding options.
Councilmember Weidner noted he would favor undergrounding the utilities.
Motion by Councilmember Polehna, seconded by Councilmember Junker,to approve the first reading
of Ordinance 1073,Electric Franchise Ordinance, and Ordinance 1073A, Implementing an Electric
Service Franchise Fee, and Ordinance 1074, Gas Franchise Ordinance, and Ordinance 1074A,
Implementing a Gas Service Franchise Fee.
Ayes: Councilmembers Menikheim, Junker, Weidner, Polehna, Mayor Kozlowski
Nays: None
Possible approval of annual dock permit for St. Croix Boat&Packet Company
Community Development Director Turnblad explained that St Croix Boat & Packet Company
keeps six excursion boats at the two docks associated with their SUP, two of which are regularly
docked elsewhere. They also provide transient boat dockage for the general public. Staff
recommends that the 2015 dock permit rate remain the same as in 2014 at $1,700 for each of the
four charter boats that are normally kept on this dock. Additionally a permit fee of$1,700 would
be paid for the one service boat, and $1,700 for the right to bring other charter boats to the site for
less than 24 hours at a time. The total fee for 2015 is therefore proposed to be $10,200. Staff
recommends approval of the 2015 dock permit.
Page 6 of 10
City Council Meeting February 3, 2015
Motion by Councilmember Menikheim, seconded by Councilmember Junker, to adopt Resolution
2015-031, approval of dock permit for St. Croix Boat& Packet and wharfage permit for gondola.
Ayes: Councilmembers Menikheim, Junker, Weidner, Polehna, Mayor Kozlowski
Nays: None
Possible approval of feasibility study for Stillwater Oak Park Heights Street Project
Public Works Director Sanders reviewed the project wherein Oak Park Heights is proposing a
street reconstruction project for the northeast comer of their community. Included in the project
area are streets that border with the City of Stillwater: Paris Avenue from 62nd Street south,
Panama Avenue from Orleans to 62nd Street and 62nd Street from Panama Avenue to Paris
Avenue. Oak Park Heights would be responsible for the engineering and construction of these
streets and would invoice all costs associated with work affecting properties in Stillwater. It is
proposed that the City assess a portion of these costs to the affected property owners. The total
estimated cost of the project is$347,520. According to the City Assessment Policy,reconstruction
costs would be assessed 70%to the affected property owners on 62nd and Panama. 100% of the
costs for Paris Avenue would be assessed to the Government Center. Washington County has
approved this.The City's portion of the costs would be approximately$64,000.The project would
be constructed this spring, summer and fall, with the assessment hearing in October. Staff
recommends approving the feasibility study and setting the public hearing for February 17. A
letter received from the City of Oak Park Heights indicates they would also like to include Orleans
(65th Street North).
Councilmember Menikheim recognized that Public Works Director Sanders has negotiated with
the school district and County to get them to approve their proposed assessments for the project.
The City would have to find money to support doing 65th Street. Oak Park Heights has been
persistent in trying to get the project done all at once. He asked if the Council should consider
adding 65th Street as a neighborly gesture.
Public Works Director Sanders explained that including 65th Street in the project would make
assessment costs for the County, school district, and Panama Avenue residents about 20%higher.
He has talked with these property owners. To go back and try to justify the increase would be
uncomfortable. There are other future projects, for instance Osman Avenue, which could include
65th Street.
Councilmember Weidner recused himself from discussion as the City of Oak Park Heights is a
client of his firm.
Motion by Councilmember Menikheim, seconded by Councilmember Junker, to adopt Resolution
2015-032, resolution receiving report and calling hearing on Stillwater Oak Park Heights Street
Project (Project 2014-03).
Ayes: Councilmembers Menikheim, Junker, Polehna, Mayor Kozlowski
Nays: None
Abstain: Councilmember Weidner
Possible approval of Parking Lot Rates
Community Development Director Turnblad explained that currently, $5 is charged in Lot 1, $3
is charged in Lot 2, and Lots 3-11 are free for three or four hours (depending upon the lot). The
revenue raised with these rates falls short of paying for all operational and capital costs associated
Page 7 of 10
City Council Meeting February 3, 2015
with the downtown parking system. The Parking Commission undertook a system analysis and
found that a $5 all day rate in Lots 1-11 would be sufficient to cover all costs, and possibly provide
some funds to offset the parking ramp's negative fund balances. The Parking Commission
recommends instituting a daytime residential pass program in conjunction with the parking lot
rate increase. This daytime residential pass would allow any Stillwater resident to park for free in
any of the downtown municipal lots. Residents would only be charged the cost of the materials
for the annual windshield sticker pass. Staff requests the Council approve the Parking
Commission recommendation to convert Lots 1-11 to pay lots, but not set the rate yet, so that the
Parking Commission can continue working with a consultant to find appropriate equipment and
set the rates.
Mayor Kozlowski asked about parking for boaters who own slips, and Community Development
Director Turnblad replied that anyone who purchases a monthly resident parking pass would be
allowed to park free for the day. Lots 10 and/or 11 would allow anyone who has purchased a
downtown resident pass, which would include residents on boats and their guests if they buy an
extra pass, to park overnight.
Councilmember Junker recognized that the Parking Commission found that implementing the
residential parking pass program is key. It will allow any resident to park all day at no cost. In his
opinion, the $5 all day fee for those marked lots would be fair. To try to please everyone would
is not always possible.
Councilmember Weidner reminded the Council that not everyone who goes downtown lives in
Stillwater - there are a lot from Oak Park Heights, Bayport and surrounding areas. It may be
excessive to charge them $5 to park downtown for a short time, for instance lunch. He would like
the rates to have some flexibility. Mr. Turnblad replied the Parking Commission will look at what
that means system wide, and the equipment consultant will help the Commission think through
those issues.
Mayor Kozlowski agreed that he would like to see some flexibility in setting the rates. He does
not like the notion of having to spend $5 to park to have lunch downtown.
Motion by Councilmember Junker, seconded by Councilmember Menikheim, to convert Lots 3
through 11 into pay parking lots, and requesting the Parking Commission to look at varied rates for
the lots.
Ayes: Councilmember Menikheim, Junker, Weidner, Polehna, and Mayor Kozlowski
Nays: None.
Designation of Council representatives for Board/Commissions/Committees
The Council discussed assignments to boards and commissions.
Councilmember Weidner suggested that the Council Representative to the Planning Commission
should become a voting member of the Commission.
Community Development Director Turnblad acknowledged that the Planning Commission has
some authority that other commissions do not, for instance they approve some Special Use
Permits.
City Attorney Magnuson reminded the Council that to allow the Council representative to vote
on the Planning Commission would require an amendment to the ordinance.
Page 8 of 10
City Council Meeting February 3, 2015
Councilmember Weidner stated it would be good to get input from Planning Commission
Chairman Kocon.
Councilmember Menikheim questioned why the Councilmember should have a vote.He feels the
Councilmember's role is to explain to the Commission where the Council is coming from. To
have a vote would change the dynamics of the vote and diminish the autonomy that the
Commissioners have.
Councilmember Weidner countered that it would allow the Council person to freely engage in the
discussion without requesting permission from the Commission to participate.
Councilmember Junker stated he served four years on the Planning Commission and he voiced a
lot of opinions but had no voting authority. He felt his opinions were well recognized by members
of the Commission. He viewed his role as liaison to bring insight to the Council on decisions of
the Commission.
Mayor Kozlowski pointed out this issue needs to come back to a later meeting for discussion and
decision.
City Clerk Ward pointed out that if the Council representative has a vote, then the Commissions
will become even-numbered which could result in tie votes so adjustments would have to be done
accordingly.
Motion by Councilmember Junker, seconded by Councilmember Menikheim,to approve Resolution
2015-033, designation of Council representatives for Boards/Commissions/Committees.
Ayes: Councilmembers Menikheim, Junker, Weidner, Polehna, Mayor Kozlowski
Nays: None
COUNCIL REQUEST ITEMS
Councilmember Weidner asked how the City might encourage former township residents wishing
to develop, instead of developing five acres,to combine large lots for development purposes, and
Interim City Administrator Sanders replied he has been looking at this issue in regard to the
transportation fee and will look at the other fees too (AUAR, trunk sewer and water fees).
Councilmember Weidner asked if the Council can consider an improved residential parking
ordinance that prohibits parking on front lawns in neighborhoods, and Community Development
Director Turnblad responded staff can look at this matter.
Councilmember Menikheim asked about the City's relationship with the Boom Site, in regard to
a "Friends of the Boom Site" meeting set for February 24 which he plans to attend, and Mr.
Turnblad stated the Boom Site has never been in the City's jurisdiction. There have been
conversations over the last nine to ten years as MnDOT phased out some of its wayside rests, and
discussion with various agencies to decide who would try to continue to maintain that as public
open space. Currently there are discussions about possibly connecting the Boom Site to the
Brown's Creek Trail, but he is not sure where these discussions have gone.
ADJOURNMENT
Motion by Councilmember Menikheim, seconded by Councilmember Polehna, to adjourn the
meeting at 8:53 p.m. All in favor.
TePb.ozlowski, May6r
Page 9 of 10
City Council Meeting February 3, 2015
ATTEST:
je„.4.6„.
Shawn Sanders, Acting City Clerk
Resolution 2015-024, directing payment of bills
Resolution 2015-025,resolution to modify the Tax Increment Financing Plan of Tax
Increment District 11
Resolution 2015-026, approving annexation development fees
Resolution 2015-027, approving fire protection contract with the Town of May
Resolution 2015-028, approving license to use real property
Resolution 2015-029, a resolution approving the abatement of certain special assessment
Resolution 2015-030,resolution designating spaces where trailers and their attached tow-
vehicles are permitted to park downtown
Resolution 2015-031, approval of dock permit for St. Croix Boat& Packet and wharfage
permit for gondola
Resolution 2015-032,resolution receiving report and calling hearing on Stillwater Oak Park
Heights Street Project(Project 2014-03)
Resolution 2015-033, Designation of Council representatives for
Boards/Commissions/Committees
Ordinance 1072, an ordinance amending City Code Section 51-2, relating to parking
regulations
Page 10 of 10