HomeMy WebLinkAbout2016-07-05 CC MIN ater
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CITY COUNCIL MEETING MINUTES
July 5,2016
REGULAR MEETING 4:30 P.M.
Mayor Kozlowski called the meeting to order at 4:30 p.m.
Present: Mayor Kozlowski, Councilmembers Menikheim, Junker, Weidner, Polehna
Absent: None
Staff present: City Administrator McCarty
City Attorney Magnuson
Community Development Director Turnblad
Finance Director Harrison
Public Works Director Sanders
Police Chief Gannaway
Fire Chief Glaser
City Clerk Ward
OTHER BUSINESS
Discussion on noise variance for American Heroes Golf Classic -August 12, 2016
Nicki Roland Ecker and Brian Nicholetti, board members for the American Heroes Golf Classic,
explained that this is the 10th year of the golf classic and they would like a variance to the noise
ordinance until 12 a.m., as they are having a live band. They added that neighbors have been
contacted and invited.
Motion by Councilmember Weidner, seconded by Councilmember Junker, to approve a variance to
the noise ordinance for the Bryan McDonough Military Heroes Foundation (American Heroes Golf
Classic) for Friday,August 12, 2016. All in favor.
Councilmember Menikheim suggested going until 11 p.m. and questioned why the veterans
should receive any more consideration than other groups, adding that he is a veteran.
Mayor Kozlowski pointed out the foundation has been coordinating with the neighbors and has
been a well-run event for years.
Councilmember Weidner stated he supports the variance because of the location, surrounded by
green space in a remote location that appears protected from most residents.
Information on Temporary Health Care Dwellings law
Community Development Director Turnblad reviewed recent legislation that allows for temporary
transitional housing for family member seniors for six months or one year. They would need to
obtain a permit from the City. If the Council wishes to opt out of the legislation, an ordinance
would need to be passed before September 1.
Councilmembers Weidner and Junker expressed a desire to opt out of the program.
Councilmember Menikheim stated he would support participation in the program.
City Council Meeting July 5,2016
Mayor Kozlowski stated he is not entirely opposed to the idea of the program, but would like
more time to decide whether or not to opt out. Council consensus was to bring the issue back to
the next meeting for a possible vote.
Discussion on request for Lumberjack Days additional activity
City Administrator McCarty informed the Council that The Locals have proposed two additional
events to be conducted in conjunction with Lumberjack Days 2016: a 5K Run on July 16, and
helicopter rides from Mulberry Point on July 16 and 17. The additional events require City
Council approval. Staff recommends approval of the 5K run but not the helicopter rides due to
staff concerns about safety and proximity to businesses and other events.
Erin McQuay,The Locals, stated that the 5K race would be put on by Meet the Monsters, starting
and ending at Pioneer Park. There are over 40 racers registered.
Adam Chunn, Lake Superior Helicopters, LLC, explained that the group does about 30 events
throughout Minnesota each year. The pilots are all instructors. The event would feature one
helicopter.
Councilmember Dunker expressed surprise at how suddenly the helicopter rides came up since
Lumberjack Days is coming up fast.
Councilmember Menikheim echoed staffs concerns about the helicopter rides due to his military
experience with helicopters landing on ships. He expressed concern about the number of staff
required for damage control, rotor wash and safety issues. He feels a helicopter ride is a great
amenity but not in the middle of all the Lumberjack Days activity. He would rather see the rides
take off from a less busy area.
Brad Glynn, The Locals, stated they considered staging the helicopter rides from other areas but
prefer to use Mulberry Point. He added that the helicopters are small, create little splash, and are
quieter than the speakers downtown.
Councilmember Junker stated the helicopter rides sound great but he is apprehensive and would
like time to watch a video showing the company's operations.
Councilmember Weidner asked about the insurance policy which he feels may be inadequate if
there is a significant incident.
Mr.Chunn provided a video showing the helicopter rides and the decibel levels created.He added
that the helicopters commonly land in heavily populated areas.Councilmember Menikheim asked
if they have had an incident in their five years of operation. Mr. Chunn replied they have not.
Mayor Kozlowski asked if The Locals looked at Bridgeview Park as a staging area. Mr. Glynn
stated he did not. Councilmember Polehna agreed that he would like to see staff should look at
Bridgeview Park and give the Council advice on having the helicopter rides in that location.
Councilmember Weidner pointed out that the videos all show less crowded areas than there would
be on Mulberry Point.He voiced concern about the proximity of people,tents and other activities
to the landing zone. He also would like more information about the insurance policy. Mr. Chunn
stated the insurance companies will not insure a piston helicopter for any more than the amount
of insurance they have. Councilmember Weidner clarified he is concerned with the $5 million
liability policy. Councilmember Polehna stated the State of Minnesota requires a certain amount
of liability insurance and if the event does not have that amount,then the City would have to pay
out in the event of a claim.
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City Council Meeting July 5, 2016
City Attorney Magnuson stated the City's insurance liability limit is$1.5 million combined, so if
there were 100 people injured, they would have to divide the $1.5 million. If the helicopter were
to crash,he doesn't think the City would be liable but the aircraft owner would probably be liable.
He stated he could check with the insurance trust to see if the City is fully covered and also with
the Lumberjack Days policy,possibly getting the helicopter company to be named as an additional
insured.
Councilmember Junker pointed out that using Bridgeview Park would create other issues such as
having to shuttle the customers down the trail and possibly shutting down the trail to bikers and
walkers.
Council consensus was to continue the discussion to the 7 p.m. meeting after the helicopter
company representative and The Locals check Bridgeview Park to see if it would work.Then staff
would look at that location.
Motion by Councilmember Junker, seconded by Councilmember Weidner, to approve the 5K race.
All in favor.
STAFF REPORTS
Police Chief Gannaway reported that the Fourth of July celebration went well. There were 20-
30,000 people. It took one hour to clear downtown. There were 53 calls for service but no major
incidents.
Fire Chief Glaser Stu agreed it was full Fourth of July with several spot fires. There were 32 calls
in three days and 12 calls on the Fourth alone. The Council thanked staff for their hard work.
Community Development Director Turnblad updated the Council on the process of Special Use
Permit sun setting. A first SUP is allowed 24 months to get up and running. If the use is inactive
for six consecutive months, it expires but the applicants can ask for an extension.They should do
this before it expires.
In response to a Council request at a previous meeting, City Administrator McCarty stated that
the Zoning Administrator position could be created during the budget process or during the year
if there is funding available. The Community Development Department has requested a Zoning
Administrator position be created as of January 2017 at an estimated annual cost of$78,000
including benefits. Funding options are to use existing department funds or to authorize funds to
be transferred from the General Fund, Typically it takes 75-90 days to get a position filled once
the position is created. The request will be in the 2017 budget to be presented August 16. The
Council may look at creating the position in 2016 if it identifies funding.
Motion by Councilmember Weidner, seconded by Councilmember Junker,to approve the creation of
a Zoning Administrator position in 2016 and authorize filling of the position, to be funded from the
current 2016 budget.All in favor.
City Administrator McCarty stated that the Finance Department is in the process of putting
together a preliminary budget proposal. The Classification Compensation Study materials are on
their way to the consulting firm and the review is taking place. Further information should be
available to the Council in August.
RECESS
Mayor Kozlowski recessed the meeting at 5:49 p.m.
Page 3 of 8
City Council Meeting July 5, 2016
RECESSED MEETING 7:00 P.M.
Mayor Kozlowski called the meeting to order at 7:00 p.m.
Present: Mayor Kozlowski, Councilmembers Menikheim, Junker, Weidner, Polehna
Absent: None
Staff present: City Administrator McCarty
City Attorney Magnuson
Community Development Director Turnblad
Public Works Director Sanders
Finance Director Harrison
Police Chief Gannaway
Fire Chief Glaser
City Clerk Ward
PLEDGE OF ALLEGIANCE
Mayor Kozlowski led the Council and audience in the Pledge of Allegiance.
APPROVAL OF MINUTES
Possible approval of May 13 and May 20, 2016 special meeting minutes and June 21, 2016 regular
meeting minutes
Motion by Councilmember Junker,seconded by Councilmember Polehna,to approve the May 13 and
May 20, 2016 special meeting minutes and the June 21, 2016 regular meeting minutes. All in favor.
PETITIONS,INDIVIDUALS,DELEGATIONS & COMMENDATIONS
Helicopters in Bridgeview Park
Erin McQuay,The Locals, and Adam Chunn,Lake Superior Helicopters LLC,reported that upon
inspection,there is plenty of space at Bridgeview Park for the helicopter to take off and land.
Motion by Councilmember Weidner, seconded by Councilmember Polehna, to direct The Locals to
work with staff to allow helicopters in Bridgeview Park during Lumberjack Days Saturday and
Sunday,July 16 and 17.Councilmember Weidner amended the motion, and Councilmember Polehna
agreed,to include the times of from 10:30 a.m.to 6 p.m. for the helicopter rides.All in favor.
Mikaela Huot, Springsted, regarding the possible approval of resolution preliminarily providing for
the issuance of Tax Increment Revenue Refunding Bonds (Territorial Springs and The Lofts of
Stillwater projects), Series 2016c
Mikaela Huot, Springsted,explained the refinancing would combine the three obligations into the
one obligation. The resolution authorizes the sale of the bonds.
City Attorney Magnuson reviewed the reason for the bonding refinance. It is in furtherance of the
settlement agreement reached with Terra Springs partners. It is advantageous for the City to
refinance two tax increment bond issues which were initially at a higher rate.
Motion by Councilmember Menikheim, seconded by Councilmember Junker, to adopt Resolution
2016-137,authorizing the sale of Tax Increment Financing refunding bonds.
Ayes: Mayor Kozlowski, Councilmembers Menikheim, Junker, Weidner, Polehna
Nays: None
Page 4 of 8
City Council Meeting July 5, 2016
Lumberjack Days Update-The Locals
Erin McQuay updated the Council on preparations for Lumberjack Days. Dave Ratte, Parade
Coordinator, shared plans for the parade.
Councilmembers thanked The Locals for excellent work making Lumberjack Days a great family-
friendly community event.
OPEN FORUM
Cameron Murray, 350 Main Street North, a resident of Stillwater Mills, thanked the City for
setting up the Downtown Plan Workshop which he attended. An issue commonly expressed and
experienced during the workshop was the noise from motorcycles. He hopes the issue will be
included in the Downtown Plan and Comprehensive Plan, and asked for enhanced enforcement
of ordinances and continued outreach to motorcyclists.
Police Chief Gannaway stated the last few years the Department has done extra enforcement. He
will come back with additional plans for reducing motorcycle noise.
Bob Katula, 107 Laurel Street East, agreed there is a problem with motorcycle noise. He recalled
in 2007 Chief Gannaway was going to do more enforcement. The issue is growing. He asked for
more enforcement of existing ordinances and provided examples of ways other communities have
addressed the issue.
Jackson Franz, 1311 Dallager Court and Josiah Gregg, Stillwater Township,asked the Council to
consider a ban on plastic bags for environmental purposes. They provided facts about the
negatives of using plastic bags. Councilmember Menikheim suggested they become more
involved with Sustainable Stillwater. Mayor Kozlowski noted he has received similar requests
from students. He would like to look at the issue.
Mike Robinson, 801 Pine Street West, agreed that there is a motorcycle noise problem. He
provided a list of properties which are running lodging establishments and should be collecting
lodging tax. He added there has been no enforcement.
City Attorney Magnuson provided an update on the Council's short term rental review. Staff has
attended two online seminars on how to approach the regulation of short term rentals, which are
an issue throughout the U.S. It would be hard for the City to tax the properties without implying
their legitimacy. It is hoped that by the end of the summer a draft regulation can be circulated for
review. He assured that staff is taking the issue very seriously and doing a thoughtful job in
drafting regulations for Council review.
Mr. Robinson stated he wished the staff had informed him of the progress on the issue.
CONSENT AGENDA
Resolution 2016-132,directing the payment of bills
Resolution 2016-133,amending the Special Use Permit(SUP)for a Bed and Breakfast at 807
Harriet Street South, Case No. 2016-21
Possible approval to purchase Human Resources software
Resolution 2016-134,approving the reallocation of funds in the Capital Improvement
Budget
Resolution 2016-135,appointing election judges and fixing compensation
Possible approval of ERM for consultant services for 2015-2016 Myrtle Street Lift Station
Rehabilitation Project
Page 5 of 8
City Council Meeting July 5, 2016
Resolution 2016-136, approving license dba name change from Lion's Main to Lion's
Tavern
Councilmember Weidner requested that Resolution 2016-134, approving the reallocation of
funds in the Capital Improvement Budget, be removed from the Consent Agenda for discussion.
Motion by Councilmember Junker, seconded by Councilmember Polehna, to adopt the Consent
Agenda as amended.
Ayes: Mayor Kozlowski, Councilmembers Menikheim, Junker, Weidner,Polehna
Nays: None
Councilmember Weidner asked about the reallocation of funds in Resolution 2016-134.
City Attorney Magnuson clarified that a reallocation done earlier in the year was to correct a
historical record regarding funds gifted to the library.Tonight's resolution is for a different action,
funding set aside for one purpose which the Library Board wishes to use for a different purpose.
Councilmember Weidner asked about an audit. Finance Director Harrison responded that the
library funds are audited as part of the City audit each year and added that every year a specific
area is chosen for an enhanced audit and this year it happens to be the library.
Councilmember Weidner stated it seems like there are a lot of actions to correct the record,
reallocate money and so on. He asked if the City has an obligation to have a complete financial
audit done.
Ms. Harrison replied that the library has special foundations and contribution funds but the funds
do not all come through the City's books.
Councilmember Weidner stated it seems to him there is not full disclosure about the library funds
and where they go. He is frustrated and does not feel he has a clear picture of what it costs to run
the library,but it sounds like City staff is already on top of it.
Ms. Harrison added that staff received information from the library recently about all the funds
and their uses. During the budget process in August, she and City Administrator McCarty will be
providing that information to the Council. Councilmember Menikheim suggested having a joint
meeting with the Library Board. Councilmember Weidner stated it would be a good idea to have
a joint meeting.
Motion by Councilmember Polehna, seconded by Councilmember Menikheim, to adopt Resolution
2016-134,approving the reallocation of funds in the Capital Improvement Budget.
Ayes: Mayor Kozlowski, Councilmembers Menikheim and Polehna
Nays: Councilmembers Weidner and Junker
PUBLIC HEARINGS
A public hearing to consider a request from Northland Real Estate for the consideration of a Zoning
Map Amendment, from Agricultural Preservation to Lakeshore Residential, for the property located
at 12620 72nd Street North(Ordinance 1088, amending the Stillwater City Code Section 31 entitled
establishment of districts by rezoning approximately eight acres from AP—Agricultural Preservation
-continued from June 21, 2016 meeting)
Referring to the petition brought forth asking the Council to require an Environmental Assessment
Worksheet(EAW),Community Development Director Turnblad explained that the project is well
under the 375 unit threshold for a mandatory EAW. Nonetheless, any citizen may file a petition
Page 6 of 8
City Council Meeting July 5, 2016
asking for a discretionary EAW and there is a procedure for working this through the
Environmental Quality Board which reviews the petition to see if it meets standards. He continue
by stating that a vote tonight on the rezoning will not impact that process,because it doesn't confer
on the developer any development rights - that will not happen until a Special Use Permit is
applied for, so there is still time for a petition to be brought to the EQB in a timely fashion.
Mayor Kozlowski opened the public hearing.There were no public comments. Mayor Kozlowski
closed the public hearing.
Motion by Councilmember Weidner, seconded by Councilmember Junker,to approve second reading
of Ordinance 1088, amending the Stillwater City Code Section 31-300 entitled Establishment of
Districts by Rezoning approximately eight acres from AP -Agricultural Preservation.
Ayes: Mayor Kozlowski, Councilmembers Menikheim, Junker, Weidner
Nays: Councilmember Polehna
UNFINISHED BUSINESS
Discussion on TIF Agreement amendment for the conversion of the former Wolf Brewery Block to a
boutique hotel
Community Development Director Turnblad stated that information was received this morning to
do due diligence on the request for an extension of the TIF Agreement. Several staff members
reviewed it.On its surface it looks like a serious,well financed project,but staff does not feel they
have not had enough time to review everything received this morning. Staff suggests that the
Council direct staff to draft the agreement to be formalized at the next meeting.
Councilmember Weidner expressed concern about the continual behavior of the applicant to
ignore the City's deadlines. City Attorney Magnuson stated staff challenged the developers to
show why and how this project is different from the previous proposal. To see the information,
which is private,staff had to formalize a confidentiality agreement because it concerns non-public
data.A preliminary review indicates that the project is better funded with liquidity providers that
are providing a cash infusion into the financing picture. Staff was very encouraged by seeing this,
but did not have time to finalize the agreement.
Motion by Councilmember Junker, seconded by Councilmember Menikheim, to direct staff to draft
a TIF extension agreement for a future Council vote.
Ayes: Mayor Kozlowski, Councilmembers Menikheim, Junker, Polehna
Nays: Councilmember Weidner
NEW BUSINESS
Possible approval of plans and specifications for Myrtle Street lift station improvements
Public Works Director Sanders explained the project. Staff recommends approval.
Motion by Councilmember Polehna, seconded by Councilmember Junker,to adopt Resolution 2016-
138,approving plans and specifications and ordering advertisement for bids for the 2016 Myrtle Street
Lift Station Improvement.
Ayes: Mayor Kozlowski, Councilmembers Menikheim, Junker, Weidner, Polehna
Nays: None
Page 7 of 8
City Council Meeting July 5, 2016
Possible approval of stop sign at Maryknoll Drive and Boutwell Road
Public Works Director Sanders informed the Council that Maryknoll Drive, near the National
Guard Armory, is open to through traffic.The intersection at Boutwell Road is uncontrolled. Staff
recommends installation of a stop sign on Maryknoll Drive at the intersection of Boutwell Road.
Motion by Councilmember Junker,seconded by Councilmember Weidner,to adopt Resolution 2016-
139,approving stop sign on Maryknoll at Boutwell Road.
Ayes: Mayor Kozlowski, Councilmembers Menikheim, Junker, Weidner, Polehna
Nays: None
COMMUNICATIONS/REQUESTS
There were no communications or requests.
COUNCIL REQUEST ITEMS
There were no Council request items.
ADJOURNMENT
Motion by Councilmember Junker, seconded by Councilmember Menikh-•I. .d'ourn the meeting
at 8:29 p.m. All in favor. -.4111r
UjP ski, Mayor
ATTEST:
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Diane F. Ward, City Clerk
Resolution 2016-132,directing the payment of bills
Resolution 2016-133,amending the Special Use Permit(SUP)for a Bed and Breakfast at 807
Harriet Street South, Case No. 2016-21
Resolution 2016-134,approving the reallocation of funds in the Capital Improvement Budget
Resolution 2016-135,appointing election judges and fixing compensation
Resolution 2016-136,approving license dba name change from Lion's Main to Lion's Tavern
Resolution 2016-138,approving plans and specifications and ordering advertisement for bids
for the 2016 Myrtle Street Lift Station Improvement
Resolution 2016-139,approving stop sign on Maryknoll at Boutwell Road
Ordinance 1088, amending the Stillwater City Code Section 31-300 entitled Establishment
of Districts by Rezoning approximately eight acres from AP -Agricultural Preservation
Page 8 of 8