HomeMy WebLinkAbout2017-04-18 CC MIN ate!
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CITY COUNCIL MEETING MINUTES
April 18,2017
REGULAR MEETING 7:00 P.M.
Mayor Kozlowski called the meeting to order at 7:05 p.m.
Present: Mayor Kozlowski, Councilmembers Menikheim, Junker and Polehna
Absent: Councilmember Weidner
Staff present: City Administrator McCarty
City Attorney Magnuson
Fire Chief Glaser
Police Chief Gannaway
Community Development Director Turnblad
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 April 4, 2017 regular and recessed meeting
Motion by Councilmember Menikheim, seconded by Councilmember Junker,to approve the April 4,
2017 regular and recessed meeting minutes. All in favor.
PETITIONS,INDIVIDUALS,DELEGATIONS & COMMENDATIONS
Proclamation: Scott Christensen
Mayor Kozlowski acknowledged Stillwater High School Boys Track & Field Coach Scott
Christensen's induction into the Minnesota Track Coaches Hall of Fame on January 27,2017. He
presented Coach Christensen with a Proclamation designating April 19, 2017 "Scott Christensen
Day."
Lumberjack Days Update
Erin McQuay, The Locals, updated the Council on plans for Lumberjack Days,July 21-23, 2017.
OPEN FORUM
There were no public comments.
STAFF REPORTS
Community Development Director Turnblad reminded the Council of the open house on the draft
downtown plan Thursday from 6-8 p.m. at City Hall.
City Council Meeting April 18, 2017
Public Works Director Sanders announced Washington County will hold an open house on
Osgood Avenue improvements proposed for 2018, tomorrow at Oak Park Heights City Hall.
Councilmember Junker asked Mr. Sanders to see about getting the South Main Street hotel
construction site cleaned up.
City Administrator McCarty reported on behalf of Finance Director Harrison that the first
resolution for 2017 general obligation borrowing issues will be brought up May 2, with the total
amount reduced by $600,000 to $2 million from what was budgeted, based on actions taken by
the Council in previous sessions. He reminded the Council of National Weather Awareness Week
and Thursday's tornado warning drill; and the League of Minnesota Cities annual conference in
mid-June. He also stated the Chamber of Commerce's new program,Eggs and Issues,will feature
a State of the City address by mayors of Bayport, Oak Park Heights and Stillwater on May 10. He
reported that the summary annual reports for City departments will be posted on the web site.
CONSENT AGENDA
Resolution 2017-072,Directing the Payment of Bills
Possible approval to purchase utility truck—Public Works
Resolution 2017-073, approving of agreement with East Metro Public Safety Training
Facility
Possible approval of sanitary sewer adjustment
Resolution 2017-074, approving Minnesota Premises Permit for Lawful Gambling for
Minnesota Brass, Inc., located at Freight House, 305 Water Street S.
Possible approval of Retail Fireworks Permit—Cub Foods
Motion by Councilmember Polehna, seconded by Councilmember Junker, to adopt the Consent
Agenda.
Ayes: Councilmembers Menikheim, Junker, Polehna, Mayor Kozlowski
Nays: None
PUBLIC HEARINGS
Case 2017-03 A public hearing on a proposed ordinance to regulate Short Term Home Rentals
Community Development Director Turnblad reviewed the process that was used to draft a
proposed ordinance on Short Term Home Rentals (STHR), beginning with a study conducted by
Hoisington Koegler Group,Inc. (HKGi). After public meetings and a public hearing,on April 12,
2017, the Planning Commission recommended approval of the revised draft ordinance. Mr.
Turnblad explained the four different types of STHRs; the proposed licensing process for each
type; performance standards; application of the lodging tax; and enforcement mechanisms. He
indicated that the reason for proposing a limit of 35 Type Bs is that the workload impacts on staff
are yet unknown,especially since Type B will require onsite inspections by the Deputy Fire Chief
and Building Inspector.
Councilmember Polehna asked if Mr. Turnblad felt 35 Type B licenses is too many; and Mr.
Turnblad replied it might be too many. He stated the Planning Commission looked at everything
from 35 to no limit. Staff feels that a license fee of$200-250 would probably cover the license,
inspection, and notices sent to neighbors. The Council would set the fee annually. It could be set
with final reading of the ordinance.
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City Council Meeting April 18, 2017
Councilmember Junker stated he feels a license fee of$250 or 300 is too low.
Community Development Director Turnblad pointed out that the main difference between Type
A and Type B is notice sent to neighbors. If there are no concerns from neighbors, staff would
issue the license administratively. If there are concerns, then it would come before the Planning
Commission for a hearing. Type C,which is dedicated investment property, would require both a
Conditional Use Permit and a license. The CUP would run with the land; the license would be
tied to the owner/operator, not to the property. The regulations and process for Type D, B&Bs,
would not change.
Mayor Kozlowski asked the reason for the CUP; and Mr. Turnblad responded the CUP allows
more review, a formal public hearing, and the opportunity to attach conditions. He stated the
Planning Commission proposes a limit of 5 Type Cs.
On a question from Councilmember Junker about the definition of owner occupied versus
investment property: for instance if someone lives in the house for two weeks a year, is it owner
occupied or investment property, and he would like more clarification on Type B versus Type C.
Mr. Turnblad responded that the property classification would be the same as it is for real estate
tax purposes.
Mayor Kozlowski asked if it should be easier to apply for a STHR downtown because there is not
the concern about impacting a residential neighborhood; and Mr. Turnblad answered that
currently, this type of lodging is allowed in the Central Business District with a Special Use
Permit. The proposed ordinance does not change that, it simply memorializes it.
Councilmember Junker inquired how the City will monitor the collection of the 3% lodging tax;
and Mr. Turnblad replied that it is currently an honor system and would probably remain so.
Councilmember Menikheim complimented staff on pulling the ordinance together. Community
Development Director Turnblad stated the community has been very engaged and the process has
been inclusive.
Mayor Kozlowski opened the public hearing.
Kate Mertz, Stillwater, requested an exemption from the limits on numbers of Type B STHRs
when big events are held in Minneapolis.
Tom Lynum,626 4th Street North,asked if Type A properties may have events;and Mr.Turnblad
replied that Types A, B and C are not allowed to have events held by the guests. Property owners
may hold their own events, but must abide by City Code.
Sandy Fabio, 2946 Marine Circle, expressed concern about Type As. She would like neighbors
to be notified when they will have guests. She also is concerned that no inspections are required
for Type As.
•
On a question by Mayor Kozlowski about how neighbors will know what type a STHR falls under,
and how they will voice concerns; Mr. Turnblad replied if it is Type B or C, neighbors will get
notice when the original license is applied for. If it is Type A, they would not get notice, but if
there is activity going on that a neighbor thinks is a vacation rental,they should call the City and
ask if they have a license.If there is a problem,City staff would contact the operator to investigate.
Mayor Kozlowski asked about enforcement; and Mr. Turnblad replied the ordinance states that
after three verified legitimate complaints, the license may be revoked. City Attorney Magnuson
added that the ordinance provides that any violation, including operating without a license, is a
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City Council Meeting April 18, 2017
misdemeanor. It permits the City to issue a temporary restraining order for the violation. Police
would investigate and if there are grounds, a ticket would be issued. If violations continue, a
restraining order and injunction could be invoked.
Monty Brine, owner of 520 Main Street North, stated that limiting Type Cs to five throughout the
whole City, including the Downtown, is not realistic.
Kirk Ackerman, 1336 Second Avenue South, concurred with Mr. Brine that five Type Cs is too
low. He feels all types should have some type of safety inspection.
Matthew(did not give last name), representing Dan Priebe and Molly Rice of 210 Laurel Street,
agreed that Type As should be inspected no differently than Type Bs. He feels the City should
simplify the process for all types of STHRs. He likes the idea of separating Downtown from the
residential areas in terms of number limits. He asked if applications will be handled first come,
first served,and if consideration will be given to those STHRs that have been operating honorably.
Mayor Kozlowski closed the public hearing.
Councilmember Polehna asked if STHRs will need to meet State or County health department
codes; and Mr. Turnblad replied that the safety checklist in the back of the application packet was
developed in coordination with the Washington County Health Department, the Building
Inspector,and Fire Department. The State's regulations are no different than the County's for this
type of lodging.
Councilmember Junker agreed that all Types should be inspected; and Mr. Turnblad requested
that, if that is the case,the numbers be limited,because the City does not have staff to do all those
inspections.
Councilmember Menikheim commented that he is concerned about over regulating. If there are
problems,the ordinance can be adjusted as they come up. He feels Type As should not require an
inspection.
Councilmember Junker stated he wants to start on the right foot at the beginning. Having more
regulations will draw more serious applicants.
Mayor Kozlowski agreed with all the comments. He stated he is concerned about people falsely
claiming their STHR is hosted. Requiring an inspection might be a deterrent to that.
Motion by Councilmember Junker, seconded by Councilmember Polehna,to adopt first reading of a
proposed ordinance to regulate Short Term Home Rentals, with the following changes: require
inspections for all Types; limit Type As to 35; increase limits on Type Cs to 15; implement a license
application fee of$300; and charge fines for violations.
Ayes: Councilmembers Menikheim, Junker, Polehna, Mayor Kozlowski
Nays: None
UNFINISHED BUSINESS
Discussion on Boards/Commissions
City Clerk Ward explained the potential impacts of having the Council Representative on each
commission be a voting member. Of particular concern is the Planning Commission, which has
nine members. Currently, two desire reappointment and one new candidate has applied, for three
seats that will be open May 1. If the Planning Commission is reduced to seven members, there
will be one open seat.
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City Council Meeting April 18, 2017
Councilmember Junker commented he would like to see all the Commissions have seven
members eventually, with Council voting rights. The exception would be the Library Board,
which is governed by the City Charter. Mayor Kozlowski and Councilmember Polehna stated
they would support that.
Councilmember Menikheim stated he is not in favor of having the Council Representative vote.
He stated the Planning Commission and the Water Board are not particularly happy because they
have not been included. He acknowledged an email of concern from a Planning Commissioner,
and suggested asking the Commissions and Boards for input. City Clerk Ward indicated that the
Water Board is not part of the proposal, and that letters about the subject were sent to all the
Commissioners.
Mayor Kozlowski remarked that when he has sat on Commissions, he always felt like his input
was valued and he did not need to vote. He worries about the ability of a Councilmember to sway
the discussion and the perception that their opinion carries more weight. He stated that on certain
Commissions it is felt by some that the Council Representative's input is not welcome or at least
not appreciated. He has never felt this, but he thinks there are other Councilmembers who
expressed those concerns. He likes the idea of term limits and maybe reducing the Planning
Commission down to seven.
Councilmember Junker pointed out that two weeks ago, the Council voted 4-1 to eliminate term
limits and have voting rights for Council Representatives. He does not feel his purpose in sitting
on any Commission is to sway Commission members to vote in his favor. He would like to see
all the Commissions have seven members.
Councilmember Menikheim commented that the Council has delegated certain aspects of its work
to the Commissioners, so Council Representatives should let them do their work. He feels that if
a Council Representative has a vote, it changes the dynamics of their group and diminishes the
people on the Boards and the Commissions.
Mayor Kozlowski stated that he sees all the Commissions as functioning very well.
Councilmember Junker responded that the Commissions worked very well for 20 years when the
Council Representative had voting rights.
Council consensus was that the Planning Commission should be reduced to seven members.
Mayor Kozlowski stated he can see the positive sides,as well as the pitfalls,of having the Council
Representatives vote. Having a vote could force the Councilmember to increase participation,
which is a benefit. He does not see the current discussion as stemming from any lack of faith or
trust in the Commissions.
Councilmember Polehna noted that he was on the Parks Commission for 20 years before he was
a Councilmember. At that time, the Councilmember always voted and there was never any
problem. He does not feel a need to vote, but some people may want to have more of a say. The
Planning Commission is tasked with making some decisions that do not come to the Council, so
he thinks the Council Representative to that Commission should have a vote. All other
Commissions are advisory.
City Clerk Ward clarified that prior to 2009, Parks, Planning, and Downtown Parking were only
Commissions that had voting Council Representatives.
Mayor Kozlowski suggested making the Planning Commission seven members and having the
Council Representative to the Planning Commission, but not other Commissions,vote.
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City Council Meeting April 18, 2017
Motion by Councilmember Polehna, seconded by Councilmember Junker, to have the Council
Representative vote on the Planning Commissiononly and reduce the Commission to seven members.
Ayes: Councilmembers Junker, Polehna, Mayor Kozlowski
Nays: Councilmember Menikheim
NEW BUSINESS
Request for a Permit to Keep Bees—805 Everett Drive
Community Development Director Turnblad reported that property owner Sharon Abbott has
requested a permit to keep bees. The application meets the requirements of City Code Sec. 27-3,
Keeping of Bees. Comments have been received by two neighbors. A negative comment was
received from 806 Rainbow Court, who has allergies. A positive comment was received via
telephone from a different neighbor.
Councilmember Junker stated he sympathizes with people who are allergic to bees.He has learned
this type of bee does not usually sting. Mayor Kozlowski noted he is highly allergic to bees, but
the Council has approved such applications before and have not heard concerns after approval.
Motion by Councilmember Polehna, seconded by Councilmember Menikheim, to approve the
beekeeping permit for Sharon Abbott, 805 Everett Drive. All in favor.
Request for approval - Stillwater Half Marathon
City Administrator McCarty informed the Council that Run Stillwater Race Permit Coordinator
Stacy Einck has submitted an application to hold the annual Stillwater Half Marathon Run on
May 27, 2017. In addition to the half marathon distance run, 10K and 5K distance runs are also
proposed.The applicant is expecting 1,250-1,500 participants and is requesting the closure of 2nd
Street North, from Cherry Street to Wilkins Street, and the closure of Laurel Street, from 3rd
Street North to 2nd Street North, from 7:45 — 11:00 AM on May 27. The applicant is requesting
City provided police services and posting of"No Parking" signs. The event organizers provide
extra porta-potties and trash receptacles.A written emergency plan has been submitted.This event
also requires approval from MnDOT, City of Grant, Stillwater Township, Washington County
and Minnesota DNR. Mr. McCarty explained that the City Council denied the 2016 Stillwater
Log Run event permit application in August 2016 based upon past practice deficiencies.He stated
that the Washington County Sheriff's Department has indicated they will not provide services for
this event in 2017 and that State Troopers would need to be hired instead. City staff recommends
denial of the 2017 Stillwater Half Marathon Run event based upon the past history with this event
organizer/applicant. Mr. McCarty elaborated on the reasons for the recommended denial.
Stacy Einck, Stillwater area resident and race
permit coordinator, explained the proposed race.
1.6 miles of the 13.1 mile race is in the City of Stillwater. The course comes in on Stonebridge
Trail, runs through the north hill and ends in Pioneer Park. They had about 1,200 runners last
year; this year they have runners from 31 states and four foreign countries. She explained the
coordinators who are in charge of the race, adding that they are all locals. She stated that Ryan
Bevins,CEO and founder of Run Stillwater,is in the midst of a merger in Colorado. He informed
Beth Wolf that Ms. Einck would handle all permitting for this year.Ms. Einck responded in detail
to each concern outlined in the staff memo, including the emergency plan, Council denial of the
2016 event and the move to the Stillwater boomsite,and shared participants' comments about the
race.
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City Council Meeting April 18, 2017
City Attorney Magnuson stated that the Council could take a straw vote and then come back to
next meeting with any differences worked out in a new contract.
Police Chief Gannaway stated that Ms. Einck answered a lot of questions. One of the past issues
was that Mr. Bevins,who was identified as the primary race contact,was absent and unresponsive
or delayed responses to a lot of staff questions over the past two years, causing immense
frustration among all the City departments involved. As long as there is a point person who can
be contacted, it would go much better. Before the event is approved, he would like to review the
documents provided.
Councilmember Menikheim stated he felt that most of what Ms. Einck stated disputed what City.
staff reported. At this point he is not in favor of approving the event, but if the organizers come
back and are able to be less adversarial,perhaps he would be more open to it.
Councilmember Junker suggested the organizers work with City staff to put together a new
contract and come back in two weeks for a vote.
Mayor Kozlowski remarked it looks like a great race and he would support reviewing a new
contract.
Councilmember Polehna agreed he would support reviewing a new contract.No vote was taken.
Request for approval -Maple Island Brewing 4th of July Tent Party
City Clerk Ward reported that Maple Island Brewing submitted an application for an "outdoor
entertainment permit"to allow them to host a 4th of July Tent Party on their property on the 4th
of July. This event would include the selling of beer, music and yard games. In 2015, it was
determined that using a private lot for events more than occasionally would impact Special Use
Permit conditions and would require returning to the Planning Commission for a revision to their
Special Use Permit. Maple Island expanded use of their parking lot for Hockey Day Minnesota
as their first event and presented an application (which was approved by Council) to use their
parking lot for the Cruisin' on the Croix Car Show which would have been their second event.
However,Mr. Fabio has withdrawn the use of the parking lot for the Cruisin' on the Croix(roping
off his lot for old cars) and requests that this application for the 4th of July be considered his
second event. City Clerk Ward continued by stating that Maple Island's private parking lot (30
parking spaces)will be converted for this event on the 4th of July,which would make it unusable
for their customers. Consequently, during the event the Maple Island customers will have to rely
on the public parking system, which is always overflowing for the City's Fireworks event. Staff
recommends denial of the 4th of July event.
Mayor Kozlowski asked if this application would involve moving cars from Mr.Fabio's lot to the
city lot for Cruisin' on the Croix. Mr. Fabio responded that it depends on the weather. He stated
his lot was going to be designated for overflow parking for Cruisin' on the Croix. He was not
aware that he could only have two events and feels he is already paying for extra spaces.
Councilmember Junker stated he does not have a problem with a 4th of July event if Mr. Fabio is
not going to use his lot at all for Cruisin' on the Croix. Mr. Fabio stated he will still use his lot,
but he would not block it off exclusively for Cruisin' on the Croix. If needed for overflow, they
will direct people there, but will also direct people to public parking.
Mayor Kozlowski remarked that he does not have a problem with the request and considers it to
be Mr. Fabio's second event of the two allowed. Councilmember Junker remarked that use of Mr.
Fabio's lot for Hockey Day Minnesota went very well.
Page 7 of 9
City Council Meeting April 18, 2017
Motion by Councilmember Polehna,seconded by Councilmember Menikheim,to approve the request
by Maple Island Brewing to hold a 4th of July Tent Party in their parking lot on July 4, 2017. All in
favor.
Possible approval of plans and specifications and ordering advertisement for bids for the 2017 Street
Improvement Project 2017-02
Public Works Director Sanders stated that plans and specifications for the 2017 Street
Improvement Project are near completion. Staff requests approval of the plans and specifications
and authorization to bid.
Motion by Councilmember Junker, seconded by Councilmember Polehna,to adopt Resolution 2017-
075, approving plans and specifications and ordering advertisement for bids for the 2017 Street
Improvement Project 2017-02.
Ayes: Councilmembers Menikheim, Junker, Polehna, Mayor Kozlowski
Nays: None
Discussion on Library Board vacancy
City Clerk Ward stated that there is a vacancy on the Library Board. After full Board discussion
on the two candidates, a motion was made to recommend the interviewing committee's
recommendation, however the Library Board had a 4-4 vote. The appointment to the Library
Board is ultimately the Council's decision; however, the President of the Library Board is
requesting direction from the Council on how to proceed.
Councilmember Menikheim noted there has been a change in how he, as one of the Board
members, looks at the two candidates. For many reasons he was concerned about one of the
candidates,but after taking the opportunity to talk to a number of people,he would like to change
his vote to Paula Hemer which makes it 5-3. He noted that both candidates are well qualified.
Motion by Councilmember Menikheim to appoint Paula Hemer as the new trustee of the Library
Board. There was no second.
Councilmember Junker asked how Councilmember Menikheim could legally change his vote.
City Attorney Magnuson stated that at another meeting of the Library Board, a motion to
reconsider the vote could be made by a member of the prevailing majority.
Mayor Kozlowski stated the issue should come back with a formal recommendation from the
Library Board.
Councilmember Menikheim stated time is critical because the Library Board would like to have
the new Board member be part of the process of hiring a new Library Director.
Councilmember Junker stated he would rather have the Library Board come back to the Council
with a different vote total, since it is an awkward situation.
Councilmember Menikheim withdrew his motion.
Councilmember Polehna noted it would be cleaner to have a new recommendation come back
from the Library Board. Mayor Kozlowski and Councilmember Junker agreed.
Councilmember Menikheim stated he will inform the president of the Library Board that the
Council would like to have the vote formally retaken which may require a special meeting.
Page 8 of 9
City Council Meeting April 18, 2017
COMMUNICATIONS/REQUESTS
There were no communications/requests.
COUNCIL REQUEST ITEMS
Councilmember Polehna asked about the status of access to public parking under the Mills
complex; and Community Development Director Turnblad responded that that location is no
longer necessary for parking mitigation for the Crosby Hotel; however the Mills owners know
they still have to resolve the issue.
ADJOURNMENT TO CLOSED SESSION FOR LABOR NEGOTIATIONS STRATEGY
PURSUANT TO MINNESOTA STATUTES 13D.03
Motion by Councilmember Junker, seconded by Councilmember Menikheim,to adjourn the meeting
to closed session for labor negotiations strategy at 9:55 p.m. All in favor.
OPEN MEETING TO APPROVE ACTION ITEMS
Mayor Kozlowski reconvened the meeting at 10:22 p.m.
Present: Mayor Kozlowski, Councilmembers Menikheim, Junker and Polehna
Absent: Councilmember Weidner
Staff present: City Administrator McCarty
City Attorney Magnuson
City Clerk Ward
Motion by Councilmember Menikheim, seconded by Councilmember Polehna, to approve the
recommended revised Job Evaluation Plan for the Stillwater Public Library.
Ayes: Councilmembers Menikheim, Junker, Polehna, Mayor Kozlowski
Nays: None
ADJOURNMENT TO CLOSED SESSION FOR LAND NEGOTIATIONS (251 MAIN
STREET N)PURSUANT MN STAT. SEC. 13D.05 SUBD. 3 (B)
Motion by Councilmember Menikheim, seconded by Councilmember Junker,to adjourn the meeting
to closed session for land negotiations at 10:23 p.m. All in favor.
4016
Ted Kozlowski, Mayor
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Diane F. Ward, City Clerk
Resolution 2017-072,directing the payment of bills
Resolution 2017-073,approving of agreement with East Metro Public Safety Training Facility
Resolution 2017-074, approving Minnesota Premises Permit for Lawful Gambling for
Minnesota Brass, Inc., located at Freight House, 305 Water Street S.
Resolution 2017-075, approving plans and specifications and ordering advertisement for bids
for the 2017 Street Improvement Project 2017-02
Page 9 of 9