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HomeMy WebLinkAbout2016-12-06 CCMIN Vater iME /IITN/L/CE OF NIONFIOT✓< CITY COUNCIL MEETING MINUTES December 6,2016 REGULAR MEETING 4:30 P.M. Mayor Kozlowski called the meeting to order at 4:37 p.m. Present: Mayor Kozlowski, Councilmembers Menikheim, Junker, Weidner and 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 Short-Term Rentals Community Development Director Turnblad reviewed a study done by Hoisington Koegler Group Inc. and results of a community survey that indicated more than 80% in favor of allowing some type of short term rentals. Councilmembers Junker and Menikheim stated that they would like to consider allowing some type of short term rentals with certain parameters. Mayor Kozlowski expressed concern that an abundance of short term rentals could impact the availability of affordable housing. He would want to limit the number allowed and license them, so they could be reviewed or closed upon complaint. Mr. Turnblad initiated discussion of categories of issues that most cities consider when developing an ordinance on short term rentals, including definitions; owner-occupied vs. non-owner occupied; permitting process; whether to apply lodging tax; performance standards; and where to allow them in the city. Councilmember Weidner stated he felt owner-occupied rentals provide more safeguards for renters, such as limiting the number of guests. The Council needs to be very cognizant of lodgers' safety and of the property values of surrounding homes. Community Development Director Turnblad pointed out that health and safety controls can be accomplished without having an owner on-site. The question is,would the Council be opposed to allowing guests in a short term rental home if owners are not present. Councilmember Polehna suggested that there should be a code of conduct in the ordinance. City Council Meeting December 6, 2016 Mayor Kozlowski stated the level of care that exists when someone's own home has their furniture and fixtures, raises the bar in terms of expectations of renters. There is a distinction between someone renting out their primary residence vs. an investor renting out a property 24/7, 365. Councilmember Menikheim asked what kind of complaints VRBOs are generating, and Mr. Turnblad replied that he has not heard a lot of complaints. Police Chief Gannaway offered that there have been a couple complaints about loud music, but nothing overwhelming. Councilmember Junker stated he has seen ads for VRBOs in Stillwater that claim they accommodate 14 or 16 people- so the issue of maximum number of guests needs to be addressed. Community Development Director Turnblad suggested three categories of VRBOs: primary residence with owner on-site; primary residence with no owner on-site; and a VRBO that is not a primary residence. Councilmember Weidner suggested limiting the number of times in a year that an owner would be allowed to rent their home, for instance, no more than 14 days, which could dissuade people from purchasing properties for investment and letting them deteriorate. He feels VRBOs should be licensed and monitored. Mr. Turnblad noted that City staff could handle the administrative process, but probably would not do inspections as frequently as done in Duluth, for instance. Other issues that an ordinance may address would include, onsite parking,maximum number of occupants,minimum separation between VRBOs, number of VRBOs allowed, and notification of surrounding neighbors upon application. Councilmembers agreed that the 3% lodging tax should be applied to short term rentals. Mr.Turnblad will draft a concept ordinance for further Council discussion before setting up public hearings. Strategic Plan Update City Administrator McCarty shared information on updating of the Strategic Plan, and identified items that have been accomplished since the last review. Councilmember Menikheim stated that, as a self-appointed advocate "for all the old people," he feels the Strategic Plan should incorporate more initiatives for the elderly. • STAFF REPORTS Police Chief Gannaway reported that the after-hours phone in the breezeway,between the old Fire Station and City Hall is no longer accessible to public. He added that the City is participating in Toys for Tots with drop off sites in the Police Department lobby and City Hall main lobby. City Clerk Ward informed the Council that, beginning with the February 2017 meeting, the Heritage Preservation Commission decided to move its meetings from the first Monday to the third Wednesday of the month,to avoid stacking of meetings. Community Development Director Turnblad stated that the new paint booth at Stillwater Collision has been inspected and is operating. He added that due to the City Hall/Police Department remodeling,parking for staff,Council,and public will be impacted over the next year.Eventually, all the lots below will be for employee/Council use only. The public will park on the street. The breezeway is closed as of today. He also informed the Council that developer Mark Sweet is eyeing the Teddy Bear parking lot on Second and Nelson Streets to build apartment units with Page 2 of 6 City Council Meeting December 6, 2016 on-site parking. They are hesitant to invest heavily into the application without an idea from the Council about whether it is a good idea. They would want to purchase the property from the City (it is not currently up for sale) and ask for TIF financing. Councilmembers Weidner and Polehna stated the developer should go through the normal process. Councilmember Junker stated he does not see any benefit in selling the property,because as a potential site for another parking ramp, it is valuable to the City for many reasons. Councilmember Menikheim indicated that he would like to hear the developer's concept. City Attorney Magnuson reviewed the history of the site. It took a lot of time and expense to acquire the site when UBC wanted to relocate to the industrial park. Councilmembers agreed the developer could come in to discuss the proposal, with the understanding there is no interest in selling the property right now,especially until the Downtown Plan is completed. City Administrator McCarty reported that on November 30, he and Councilmember Menikheim attended the regional meeting of the League of Minnesota Cities and Metro Cities.He will provide a legislative list for Council consideration. RECESS Mayor Kozlowski recessed the meeting at 5:43 p.m. RECESSED MEETING 7:00 P.M. Mayor Kozlowski called the meeting to order at 7:06 p.m. Present: Mayor Kozlowski, Councilmembers Menikheim, Junker, Weidner and 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 PLEDGE OF ALLEGIANCE Boy Scout Troop 162, from Lake Elmo, led the Council and audience in the Pledge of Allegiance. APPROVAL OF MINUTES Possible approval of November 15, 2016 regular meeting minutes Motion by Councilmember Menikheim, seconded by Councilmember Junker, to approve the November 15, 2016 regular meeting minutes. All in favor. Page 3 of 6 City Council Meeting December 6, 2016 PETITIONS, INDIVIDUALS, DELEGATIONS & COMMENDATIONS Mayor Kozlowski reported that for the 26th year in a row, the City and Finance Director Sharon Harrison earned a Certificate of Achievement for Excellence in Financial Reporting. OPEN FORUM State Senator Karin Housley informed the Council that in the upcoming session, she will Chair the new Long Term Care and Aging Committee; Vice Chair the Commerce Committee; and sit on the Veterans and Jobs and Economic Development Committees. Jerry Clark, 812 William Street, suggested a city-wide flag design contest as part of the City branding and communications strategy. CONSENT AGENDA Resolution 2016-210, directing payment of bills Resolution 2016-211, adopting delinquent sewer charges Project No. 0001 Resolution 2016-212, adopting delinquent garbage bill charges Project No. 0002 Resolution 2016-213, approval of Towing License for Stillwater Towing Resolution 2016-214, approval of Addendum No. 1 to the City of Stillwater and Plymouth Ridge, Inc., Coverall of the Twin Cities (the Agreement) Possible approval of temporary liquor license for Valley Chamber Chorale for December 9- 11, 2016 Resolution 2016-215, approval of health, dental rates and flex benefit amount for 2017 Resolution 2016-216, approving additional renewals of On-sale, Wine with Strong Beer, Sunday On-sale Liquor Licenses for 2017 Possible approval of sanitary sewer adjustments Possible approval of participation in an employee wellness incentive program Possible approval of purchase of V-plow—Public Works Motion by Councilmember Polehna, seconded by Councilmember Weidner, to adopt the Consent Agenda. Ayes: Mayor Kozlowski, Councilmembers Menikheim, Junker, Weidner and Polehna Nays: None PUBLIC HEARINGS There were no public hearings. UNFINISHED BUSINESS Possible approval of Hockey Day Minnesota Agreement City Administrator McCarty summarized the 2017 Hockey Day Minnesota Agreement. Staff recommends approval with the conditions that the City pay for the cost of the power usage to power chillers and ice cooling equipment at an estimated cost of$2,000 to $3,000; and the final draft language will be reviewed by counsel for the organizing committee. Finance Director Harrison noted there is enough funding to pay for the power costs in the 5% administrative fee that the City retains out of the lodging tax collected. Page 4 of 6 City Council Meeting December 6, 2016 Councilmember Polehna recused himself from discussion and voting, as he is on the organizing committee. Motion by Councilmember Menikheim, seconded by Councilmember Weidner,to adopt Resolution 2016-217,resolution approving the 2017 Hockey Day Minnesota Agreement. Ayes: Mayor Kozlowski, Councilmembers Menikheim, Junker, Weidner Nays: None Abstain: Councilmember Polehna NEW BUSINESS Truth in Taxation Presentation& Possible adoption of Resolutions for 2017 Budget& Tax Levy City Administrator McCarty presented an overview of the 2017 proposed budget and tax levy. Finance Director Harrison explained the property tax rate and the fiscal disparity part of the levy. Gang Qi, 3060 White Pine Way, questioned his property tax increase, which he stated was more than twice the percentage of his neighbors. City Clerk Ward directed Mr. Qi to the Washington County Assessor's office. Motion by Councilmember Weidner,seconded by Councilmember Junker,to adopt Resolution 2016- 218, adopting the Final Budget and the commitment of certain revenue sources for the fiscal year 2017. Ayes: Mayor Kozlowski, Councilmembers Menikheim, Junker, Weidner and Polehna Nays: None Motion by Councilmember Polehna, seconded by Councilmember Menikheim, to adopt Resolution 2016-219, adopting the final tax levy for the year 2017. Ayes: Mayor Kozlowski, Councilmembers Menikheim, Junker, Weidner and Polehna Nays: None Possible approval of Use Permit for LodeStar Community Development Director Turnblad reported that LodeStar Learning Corporation has requested the use of the City's Downtown Walking Tour videos for educational purposes. Staff recommends approval. Motion by Councilmember Weidner, seconded by Councilmember Polehna, to adopt Resolution 2016-220, a resolution approving a use license for LodeStar Learning Corporation. Ayes: Mayor Kozlowski, Councilmembers Menikheim, Junker, Weidner and Polehna Nays: None Possible approval of Event Permit for Maple Island Brewery (Case No. 2016-47) Community Development Director Turnblad indicated that Maple Island Brewery is proposing to use their parking lot for outdoor activities January 19 through January 22, 2017, in connection with Hockey Day Minnesota. Staff recommends approval with conditions. Page 5 of 6 City Council Meeting December 6, 2016 Motion by Councilmember Junker, seconded by Councilmember Menikheim, to adopt Resolution 2016-221,a resolution approving an outside sales and special event permit for Maple Island Brewery, located at 225 Main Street North, Case No. 2016-47, as conditioned. Ayes: Mayor Kozlowski, Councilmembers Menikheim, Junker, Weidner and Polehna Nays: None COMMUNICATIONS/REQUESTS There were no communications/requests. COUNCIL REQUEST ITEMS Councilmember Polehna thanked J.G. Hause Construction for donating the Community Christmas Tree; Mike Raleigh for delivering it, Tom and Todd Weidner and public works for helping decorating the tree. He congratulated the Downtown Business Association for a great Twinkle Party. ADJOURNMENT Motion by Councilmember Junker, seconded by Councilmember Menikheim,to adjourn the meeting at 7:53 p.m. All in favor. Ted Ko: - ski, Mayor ATTEST: .,z,z (LI k.)7A- C Diane F. Ward, City Clerk Resolution 2016-210,directing payment of bills Resolution 2016-211, adopting delinquent sewer charges Project No. 0001 Resolution 2016-212, adopting delinquent garbage bill charges Project No. 0002 Resolution 2016-213, approval of Towing License for Stillwater Towing Resolution 2016-214, approval of Addendum No. 1 to the City of Stillwater and Plymouth Ridge, Inc., Coverall of the Twin Cities (the Agreement) Resolution 2016-215, approval of health, dental rates and flex benefit amount for 2017 Resolution 2016-216, approving renewals of On-sale, Wine with Strong Beer, Sunday On-sale Liquor Licenses for 2017 Resolution 2016-217,resolution approving the 2017 Hockey Day Minnesota Agreement Resolution 2016-218, adopting the final budget and the commitment of certain revenue sources for the fiscal year 2017 Resolution 2016-219, adopting the final tax levy for the year 2017 Resolution 2016-220, a resolution approving a use license for Lodestar Learning Corporation Resolution 2016-221, a resolution approving an outside sales & event permit for Maple Island Brewery located at 225 Main Street North, Case No. 2016-47 Page 6 of 6