HomeMy WebLinkAbout2017-02-21 CC MIN ater
INE EIETN►LACE Of MINNESOTA
CITY COUNCIL MEETING MINUTES
February 21,2017
REGULAR MEETING 7:00 P.M.
Mayor Kozlowski called the meeting to order at 7:00 p.m.
Present: Councilmembers Menikheim, Junker, Weidner, Polehna and Mayor
Kozlowski
Absent: None
Staff present: City Administrator McCarty
City Attorney Magnuson
Finance Director Harrison
Fire Captain Chad Jansen
Police Captain Meredith
Community Development Director Turnblad
Finance Director Harrison
Public Works Director Sanders
City Clerk Ward
PLEDGE OF ALLEGIANCE
Mayor Kozlowski led the Council and audience in the Pledge of Allegiance.
APPROVAL OF MINUTES
Possible approval of minutes of February 7, 2017 regular, closed session and recessed meeting
Motion by Councilmember Polehna, seconded by Councilmember Menikheim, to approve the
February 7, 2017 regular, closed session and recessed meeting minutes. All in favor.
PETITIONS, INDIVIDUALS, DELEGATIONS & COMMENDATIONS
Resolution 2017-028, Certificate of Appreciation - Jeff Magler retirement; Resolution 2017-029,
Certificate of Appreciation - Carolyn Blocher retirement; Resolution 2017-030, Certificate of
Appreciation - Lynne Bertalmio retirement; and Resolution 2017-033, Certificate of Appreciation -
Gary Lindeman retirement
Motion by Councilmember Polehna, seconded by Councilmember Weidner, to adopt Resolution
2017-028, Certificate of Appreciation - Jeff Magler retirement.
Ayes: Councilmembers Menikheim, Junker, Weidner, Polehna and Mayor Kozlowski
Nays: None
Motion by Councilmember Menikheim, seconded by Councilmember Polehna, to adopt Resolution
2017-029, Certificate of Appreciation - Carolyn Blocher retirement.
Ayes: Councilmembers Menikheim, Junker, Weidner, Polehna and Mayor Kozlowski
Nays: None
City Council Meeting February 21, 2017
Motion by Councilmember Menikheim, seconded by Councilmember Junker, to adopt Resolution
2017-030, Certificate of Appreciation- Lynne Bertalmio retirement.
Ayes: Councilmembers Menikheim, Junker, Weidner, Polehna and Mayor Kozlowski
Nays: None
Motion by Councilmember Junker, seconded by Councilmember Polehna,to adopt Resolution 2017-
033, Certificate of Appreciation - Gary Lindeman retirement.
Ayes: Councilmembers Menikheim, Junker, Weidner, Polehna and Mayor Kozlowski
Nays: None
Mayor Kozlowski read the proclamations commending Jeff Magler, Lynne Bertalmio, Carolyn
Blocher, and Gary Lindeman.
Jeff Magler and Lynne Bertalmio thanked the Council, City Staff, and the Stillwater community
for their support over the years.
Introduction of Interim Library Director—Melissa Brechon
Library Board President Keliher introduced Interim Library Director Melissa Brechon.
CVB Annual Report - President Jerry Helmberger& Christie Rosckes
Jerry Helmberger and Christie Rosckes presented the Stillwater/Oak Park Heights Convention&
Visitor Bureau annual report for 2016. Mr. Helmberger emphasized the importance of tourism
and reviewed the lodging taxes collected. Ms. Rosckes shared the 2016 and 2017 marketing plans
and presented the top ten highlights of 2016. She noted that the impact of Ice Castles and Hockey
Day were phenomenal.
Councilmember Weidner asked how the CVB determined how to distribute the $46,000 that was
given to events. Mr. Helmberger replied that the first criteria is always the mission statement -
promoting tourism with an emphasis on overnight stays. Ms. Rosckes stated she would provide
the Council with the application which lists all the criteria for grants given to events. Mr.
Helmberger added that providing grants to people who are on the board is one of the problems
with a small town in which a few people tend to do everything. The choice becomes to support
them or to not support them at all. He stated that the entire board meets, reviews and decides on
all the grant applications.
OPEN FORUM
There were no public comments.
STAFF REPORTS
Public Works Director Sanders noted with the warm weather, the National Weather Service has
forecast that by Saturday the river will have risen six feet.
City Attorney Magnuson reviewed a memo regarding the lodging tax. He explained that State
Law permits the City to tax lodging at the rate of 3%, provided that 95% of the tax collected is
used to fund a local convention and visitor bureau for the purpose of marketing the area as a tourist
or convention center. The remaining 5% can be retained by the City to offset the costs of
administering the tax.
Community Development Director Turnblad presented the Community Development
Department's 2016 annual report.
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City Council Meeting February 21, 2017
CONSENT AGENDA
Resolution 2017-031,Directing the Payment of Bills
Resolution 2017-032, approval of cleaning services contract for municipal parking ramp
Resolution 2017-034,resolution approving City of Stillwater hiring practice policy for vacant,
new, seasonal, temporary and part-time positions
Resolution 2017-035,approving contract with RES Specialty Pyrotechnics
Resolution 2017-036, approving the HSA Adoption Agreement—Health Saving Account
Master Service Agreement, FSA Adoption Agreement— Section 125 Cafeteria-Flexible
Benefits Plan Master Services Agreement and Respective Plan Summaries with MII
Life, Inc., dba: SelectAccount
Possible approval of Pay Equity Report
Resolution 2017-037, approving the job evaluation points review proposal, Addendum No. 1
and incorporating to the FlahertylHood Classification/Compensation Contract
Resolution 2017-038, approving issuance of a new on-sale and Sunday Liquor Licenses to 3rd
Street Post LLC; dba: 3rd Street Post (formerly the American Legion#48)
Resolution 2017-039, accepting work and ordering final payment for North Mulberry Parking
Lot Improvement (Project 2012-06c)
Resolution 2017-040, approval of Development Fee Rates for 2017
Resolution 2017-041, approval of the St. Croix Valley Recreation Center and Lily Lake Arena
Management Agreement with St. Croix Caterers, Inc.
Resolution 2017-042, approval of expenditure for the purchase of evidence tracking software
Possible approval of Sanitary Sewer Adjustments
Possible approval of NILMDTS Remembrance Walk event— September 9, 2017
Motion by Councilmember Polehna, seconded by Councilmember Weidner, to adopt the Consent
Agenda.
Ayes: Councilmembers Menikheim, Junker, Weidner, Polehna and Mayor Kozlowski
Nays: None
PUBLIC HEARINGS
There were no public hearings.
UNFINISHED BUSINESS
Possible approval of 2017 Cruisin' on the Croix Special Event Contract
Community Development Director Turnblad explained that earlier this month Frank Fabio came
before the City Council requesting approval of the use of Municipal Parking Lots 4, 5, 9, 10 and
11 for Cruisin' on the Croix. Fifteen event dates were desired, the Downtown Parking
Commission recommended approval of four of those dates and the Council approved eight of
them. However, the Council tabled the question of which municipal parking lots could be used
for the event due to concern about using Lot 10, because of complaints received that the general
public is not able to use the public lane that connects Mulberry with Laurel Street,and which runs
right through Lot 10. In place of Lot 10, Mr. Fabio suggested using Lot 8b. Planning staff spoke
with both the River Market Co-op manager, Mead Stone, and with Mr. Fabio about use of lot 8b
for the eight event dates. Mr. Stone supported the idea, since Mr. Fabio agreed to have a person
stationed at the entrance to the lot to keep car show vehicles out of the River Market lot.
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City Council Meeting February 21, 2017
Mr. Turnblad went on to explain that the Downtown Parking Commission heard Mr. Fabio's
revised proposal for the use of Lots 4, 5, 8b, 9, and 11 at their meeting on February 16. The lots
recommended by the Downtown Parking Commission to be reserved under the revised scenario
are Lots 4, 5, 8b, and 9,for a total of 141 spaces. City staff recommends approving the reservation
of Lots 4, 5, 8b, and 9 at a fee of$211.50 per event date, with the added condition that no street
parking is used. Since July 5 is a fireworks alternate rain date,the Council may not want to allow
the car show to be July 5.
City Clerk Ward stated she informed Mr. Fabio that staff was going to recommend substituting
July 12 for July 5.
Motion by Councilmember Junker, seconded by Councilmember Menikheim, to adopt Resolution
2017-043, approving 2017 special event and contract Cruisin' on the Croix.
Ayes: Councilmembers Menikheim, Junker, Weidner, Polehna and Mayor Kozlowski
Nays: None
Discussion and consideration of additional pavers at Veterans Memorial
Community Development Director Turnblad stated that the Veterans Memorial Board is
proposing to increase the size of the paver area. The proposed expansion has been broken into
two phases. The first phase would result in the loss of only two parking spots in Lot 19. The
second phase,planned for spring of 2022 or later, will result in the loss of eight additional parking
spaces. The concept plan for the expansion was approved by the Council in November of 2015
with the condition that the Memorial Board cover the cost of the parking mitigation. The
Downtown Parking Commission recommended approval of the first phase of the expansion, and
also recommended that parking mitigation be allowed to wait until implementation of phase two.
Staff concurs with the recommendation. If the Council concurs, Mr. Turnblad stated he would
bring back a resolution formalizing it for the next meeting. Councilmembers voiced support for
the recommendation.
Discussion on Johnson Controls Solutions Initiative to reduce energy costs
City Administrator McCarty informed the Council that the Johnson Controls Solutions proposal
to do an engineering analysis of energy cost savings was quoted at $16,400, but now is $12,500
after verbal consultation. Staff would like to postpone action until a future meeting in order to
contact other communities.
Possible approval of Legislative Agenda
City Administrator McCarty summarized a possible list of items that the City could share with
State Legislators. Mayor Kozlowski and other Councilmembers suggested focusing on issues
unique to Stillwater, such as erosion especially in the area of Bridgeview Park. City Administrator
McCarty agreed to put together background material for the Council and convey it to the
Legislators.
NEW BUSINESS
Possible approval of SUP approval on North Main Street hotel project
Community Development Director Turnblad explained that in December of 2016 Midnight Real
Estate LLC appeared before the Planning Commission with a Special Use Permit request for a
new hotel, parking structure and a three story office building at 232 North Main Street. The
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City Council Meeting February 21, 2017
Planning Commission gave conditional approval of the Special Use Permit. Subsequently, the
developer discovered that the soils are so poor on the western portions of the site that the parking
structure is not feasible to construct. Therefore, the developer is now proposing to eliminate both
the parking structure and the office building, replacing both with a 62 space surface parking lot
which would be partially on private property, partially on public property. It would replace eight
gravel public spaces as well as 17 spaces that are leased by the Arcola property building. Mr.
Turnblad stated that the deadline for City Council action on this planning case was extended by
the developer to February 22nd. Therefore,the Council cannot table the case without a request to
do so by the developer. If the SUP is approved, the developer would come back with details on a
proposal for acquisition of the City parcel. Staff recommends approval with 15 conditions.
Councilmember Weidner pointed out that if the 17 spaces leased to Arcola properties are taken
away, Arcola would be in non-compliance. Mr. Turnblad replied that the Downtown Parking
Commission acknowledged that, so the new surface lot would be required to make 25 spaces
available to the public during daylight hours. He stated the hotel management is okay with that
because their parking demand is afternoon and evening. He added that the hotel can offer valet
parking within the lot, which would increase another 17 spaces.
Councilmember Weidner asked about the ramifications of taking away the parking spaces
currently leased to the Arcola property.
City Attorney David Magnuson explained that the owners of the Arcola building improved the
lot, lit it, striped it and paved it as part of the rent. They also pay $200 a month on a month to
month rental.
Councilmembers Weidner and Junker questioned how valet parking could possibly fit another 17
cars into the proposed parking lot.
Architect Mike Hoefler told the Council that the developer's intent would be to purchase the
public parcel and improve it to provide shared parking. He stated this is done with hotels
throughout the country. During the day, the 25 stalls would be available to the public and after
hours, guests would have access to those stalls.
Councilmember Weidner suggested maybe the project does not fit the site if the hotel would have
to stack four cars deep.
Councilmember Junker asked the developer, if the SUP is approved, are they open to either lease
or purchase of the City-owned parcel, and Mr. Dan Oberpriller, CPM Companies, principal
developer answered that during the Downtown Parking Commission meeting, he agreed to buy
20 parking permits for employees during the summer and 12 during the winter so hotel employees
would not be parking in the lot. The hotel also can partner with other land owners for parking,
should more parking be needed. He would be happy to provide the 17 spots back to the Arcola
building during business hours.
Councilmember Weidner remarked he did not know the City property was for sale; and Mr.
Oberpriller replied that the project would not have gotten this far if there had not been many
discussions with staff. He does not want to imply that he expects to get anything for free. He
added they are responsible business owners, otherwise they would not build a$13 million hotel.
Mayor Kozlowski acknowledged there is a need for hotel rooms in downtown Stillwater, but he
would be reluctant to sell the City property.
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City Council Meeting February 21, 2017
Councilmember Weidner asked if the developers could scale the project back and add parking
somewhere else so the City would not lose any public parking; and Mr. Oberpriller responded
that they are constrained by the elevation change on the site.
Mayor Kozlowski wondered if the hotel could mitigate the parking deficit with ramp parking just
like any other project.
Councilmember Polehna pointed out that the City keeps mitigating into the ramp,which was paid
for by taxpayer dollars, and falling further behind all the time in terms of parking. He supports
the hotel concept, but is concerned about the parking issue.
Councilmember Weidner stated he supports the hotel concept, but feels it is unrealistic to
piecemeal the site together. He is in favor of denying it and having the developer come back with
a different plan.
Councilmember Polehna asked if Mr. Oberpriller would be willing to extend the request for SUP
approval until the next meeting and come back with a different parking plan; and Mr. Oberpriller
answered that he would rather receive SUP approval and then he would have something on which
to build a parking plan. However, he is willing to agree to extend the deadline for Council action
to March 8.
Motion by Councilmember Polehna, seconded by Councilmember Junker, to table to March 7, 2017
meeting the request for a special use permit for a hotel and restaurant project.
Ayes: Councilmembers Menikheim, Junker, Weidner, Polehna and Mayor Kozlowski
Nays: None
Possible approval to purchase fire truck
Captain Chad Jensen requested approval to purchase a Custom Pumper,at a total cost of$491,358.
He explained the reasons for the purchase by indicating the life of the 1997 Pierce Engine has
been surpassed and that maintenance costs were becoming substantial. He stated that this piece
of equipment would be replacing a 1997 Pierce Engine and one Ford Mini-pumper. He also
requested authorization to sell these vehicles and any proceeds would replenish the Fire
Department's Capital Improvement Funds. He continued by stated that the funds have been
budgeted through the capital improvement plan.
Councilmember Polehna inquired what amount is substantial maintenance costs. Captain Jansen
responded the costs to fix the equipment would be over$60,000.
Motion by Councilmember Junker,seconded by Councilmember Menikheim,to approve the purchase
of the pumper as requested and authorized the sale of the 1997 Pierce Engine and Ford Mini-pumper.
All in favor.
Possible receiving of feasibility report and calling for hearing on the 2017 Street Improvement Project
Public Works Director Sanders presented the feasibility study for the 2017 Street Improvement
Project, which includes 4.3 miles of streets proposed for improvements, 2.7 miles of mill and
overlay, and 1.6 miles of reconstruction. The total project cost is estimated at $2,229,372 to be
paid through assessments and City funds according to the assessment policy. Staff recommends
that Council accept the feasibility report for the 2017 Street Improvement Project and order a
public hearing to be held on March 21, 2017.
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City Council Meeting February 21, 2017
Motion by Councilmember Weidner, seconded by Councilmember Polehna, to adopt Resolution
2017-044, resolution receiving report and calling hearing on 2017 Street Improvement Project
(Project 2017-02).
Ayes: Councilmembers Menikheim, Junker, Weidner, Polehna and Mayor Kozlowski
Nays: None
Possible approval of expenditure for Sport Court
Public Works Director Sanders explained that as part of the National Guard Armory project, an
assembly space was constructed to be utilized by the units for physical training, assembly on drill
weekends, with military vehicles brought on the premise on occasion. The floor of the assembly
space was constructed with concrete. The City is interested in expanding the use of the assembly
hall for the community and desired flooring more suitable for recreation use such as basketball,
volleyball, etc. This is fine with the National Guard, but the cost of the additional flooring is to
be borne by the City. Staff met with two sport court vendors and recommends the purchase of
the sport court from SnapSports MN in the amount of$38,078 and the approval to use monies
from the Park Dedication Fund for its purchase.
Motion by Councilmember Weidner, seconded by Councilmember Menikheim, to adopt Resolution
2017-045, approval of expenditure for the purchase of sport court for the National Guard Armory.
Ayes: Councilmembers Menikheim, Junker, Weidner, Polehna and Mayor Kozlowski
Nays: None
Possible approval to purchase Vactor Truck—Public Works
Public Works Director Sanders stated that the Sewer Department's jetter/vactor truck has served
its useful life. Staff recommends the purchase and installation of jetter/vactor equipment for a
total price of approximately $373,000.
Motion by Councilmember Weidner, seconded by Councilmember Polehna, to approve the purchase
of the jetter/vactor equipment as requested. All in favor.
COMMUNICATIONS/REQUESTS
There were no communications/requests.
COUNCIL REQUEST ITEMS
There were no Council request items.
ADJOURNMENT
Motion by Councilmember Junker, seconded by Councilmember Menikheim, to adjourn the meeting
at 10:16 p.m. All in favor.
Ted Kozlowski, Mayor
ATTES�TI:
., i4a, .,4 oir
2Thomas McCarty, Acti 4 City Clerk
Page 7 of 8
City Council Meeting February 21, 2017
Resolution 2017-028, Certificate of Appreciation: Retirement of Jeff Magler, Police
Department
Resolution 2017-029, Certificate of Appreciation: Retirement of Lynne Bertalmio, Library
Resolution 2017-030, Certificate of Appreciation: Retirement of Carolyn Blocher, Library
Resolution 2017-031,Directing the Payment of Bills
Resolution 2017-032, approval of cleaning services contract for municipal parking ramp
Resolution 2017-033, Certificate of Appreciation: Retirement of Gary Lindeman, Public
Works
Resolution 2017-034, resolution approving City of Stillwater hiring practice policy for
vacant, new, seasonal, temporary and part-time positions
Resolution 2017-035, approving contract with RES Specialty Pyrotechnics
Resolution 2017-036, approving the HSA Adoption Agreement—Health Saving Account
Master Service Agreement, FSA Adoption Agreement— Section 125 Cafeteria-Flexible
Benefits Plan Master Services Agreement and Respective Plan Summaries with MII
Life, Inc., dba: SelectAccount
Resolution 2017-037, approving the job evaluation points review proposal, Addendum No. 1
and incorporating to the FlahertyiHood Classification/Compensation Contract
Resolution 2017-038, approving issuance of a new on-sale and Sunday Liquor Licenses to 3rd
Street Post LLC; dba: 3rd Street Post (formerly the American Legion#48)
Resolution 2017-039, accepting work and ordering final payment for North Mulberry Parking
Lot Improvement(Project 2012-06c)
Resolution 2017-040, approval of Development Fee Rates for 2017
Resolution 2017-041, approval of the St. Croix Valley Recreation Center and Lily Lake
Arena Management Agreement with St. Croix Caterers, Inc.
Resolution 2017-042, approval of expenditure for the purchase of evidence tracking software
Resolution 2017-043, approving 2017 special event and contract Cruisin' on the Croix
Resolution 2017-044, resolution receiving report and calling hearing on 2017 Street
Improvement Project (Project 2017-02)
Resolution 2017-045, approval of expenditure for the purchase of sport court for the National
Guard Armory
Page 8 of 8