HomeMy WebLinkAbout2002-06-04 CC MIN
CITY OF STILLWATER
CITY COUNCIL MEETING NO. 02-11
Council Chambers, 216 North Fourth Street
June 4, 2002
REGULAR MEETING
4:30 P.M.
The meeting was called to order by Mayor Kimble.
Present:
Absent:
Council members Milbrandt, Rheinberger, Zoller and Mayor Kimble
Councilmember Bealka
Also present: City Administrator Hansen
City Attorney Magnuson
Public Works Director Eckles
Fire Chief Kallestad
Police Chief Dauffenbach
Community Development Director Russell
City Clerk Ward
Press:
Julie Kink, Courier
OTHER BUSINESS
Marv Ippel. Briqqs & Morqan - Curve Crest Villa TIF Note Resolution
Mary Ippel, Briggs & Morgan reviewed the status of the Curve Crest Villa Tax Increment
Financing and the resolution awarding the sale of the tax increment revenue notes.
Council member Rheinberger asked what would happen if Mr. Nolde defaulted.
Ms. Ippel stated that the banks would approach Mr. Nolde. She stated that the structure
of the notes is that the City of Stillwater is not at risk.
Councilmember Milbrandt asked what the annual TIF would be.
Ms. Ippel stated that it was $98,700.
Motion by Councilmember Rheinberger, seconded by Council member Milbrandt to adopt
Resolution 2002-127, resolution awarding the sale of, and providing the form, terms
covenants and directions for the issuance of two taxable tax increment revenue notes (Curve
Crest Villa limited partnership project), Series 2002, in the original aggregate principal amount
of $445,000 each. All in favor.
Ayes:
Nays:
Absent:
Councilmembers Milbrandt, Rheinberger, Zoller and Mayor Kimble
None
Councilmember Bealka
Stillwater City Council Meeting 02-11
June 4, 2002
Callina for a public hearina on proposed property tax abatements for the Lowell Inn proiect
Community Development Director Russell reviewed the proposed policy for property tax
abatements. He stated that only certain local property taxes can be abated and
properties within TIF Districts are not eligible for property tax abatements. He also
stated that the applicant would retain ownership during the period of tax abatement.
Councilmember Milbrandt asked if the Planning Commission would be involved in
reviewing requests for abatements.
Mr. Russell stated that the Planning Commission reviews TIF requests to insure that the
request would comply with the City's Comprehensive Plan or Zoning. He also stated
that the Planning Commission could review the abatement requests if Council wishes,
but he did not feel that there would be a great number of requests for property tax
abatement.
Council member Rheinberger asked if the abatement is only the City's portion of
property taxes.
Mr. Russell stated that Minnesota Statute authorizes cities to abate certain local
property taxes if it is determined to be in the community's interest, up to $100,000, up to
10 years.
City Attorney Magnuson stated that the local share of property taxes is approximately
35 percent of the property tax.
Councilmember Zoller asked if the abatement is for the cost of the improvement or
taxes.
Mr. Russell stated that the abatement is just for the local taxes.
Councilmember Zoller asked if this process could be used for handicap accessibility for
issues downtown businesses.
Councilmember Milbrandt asked if this policy is consistent with other cities, he was
concerned of having too many requests, without defined criteria as to why a request
would be rejected.
City Administrator Hansen stated that the criteria presented are more that what other
cities have and the projects submitted for tax abatement would clearly have to have a
community benefit.
Mayor Kimble stated that the City would have to look at the requests closely so that tax
abatements for particular property are in the community's best interest. He stated that
applicant should pay part of it and the City should abate only part of the tax.
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Stillwater City Council Meeting 02-11
June 4, 2002
Motion by Council member Rheinberger, seconded by Council member Milbrandt to adopt
Resolution 2002-128, resolution calling for a public hearing on proposed property tax
abatements for the Lowell Inn project and approving the policy for the abatement process. All
in favor.
Ayes:
Nays:
Absent:
Councilmembers Milbrandt, Rheinberger, Zoller and Mayor Kimble
None
Councilmember Bealka
STAFF REPORTS
Police Chief Dauffenbach stated that the Taste of Stillwater has been cancelled, but that
the bike race and art crawl held on the same weekend is still on.
Community Development Director Russell stated that the applicant for Item 3, Public
Hearings has requested that the hearing be continued until July 2, 2002.
Public Works Director Eckles informed Council that the cement is being poured at the
Public Works facility and the conduit for the fuel tank system will need to be installed
prior to the cement. The approximate cost would be $5,000.
Motion by Councilmember Rheinberger, seconded by Councilmember Zoller approving the
expenditure up to $5,000 for the conduit for the fuel tank system at the Public Works facility.
All in favor.
Mr. Eckles provided an update on the Public Works facility construction.
Councilmember Milbrandt asked if there have been any calls from neighbors.
Mr. Eckles stated that he has not received any calls and feels that the building will win
some awards.
Mayor Kimble asked what type of material would be used for the 2002 Seal Coating.
Mr. Eckles stated that the small granite chip would be used on the streets for the seal
coat project.
Mayor Kimble recessed the meeting at 5:05 p.m.
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Stillwater City Council Meeting 02-11
June 4, 2002
RECESSED MEETING
7:00 P.M.
The meeting was called to order by Mayor Kimble.
Present:
Absent:
Councilmembers Bealka, Milbrandt, Rheinberger, Zoller and Mayor Kimble
None
Also present: City Administrator Hansen
City Attorney Magnuson
Public Works Director Eckles
Fire Chief Kallestad
Police Chief Dauffenbach
Community Development Director Russell
City Clerk Ward
Press:
Julie Kink, Courier
APPROVAL OF MINUTES
Motion by Council member Rheinberger, seconded by Councilmember Bealka to approve the
May 21,2002 regular minutes with the insertion of "permanently" in the motion on closing of
Staples Park basketball court. All in favor.
PETITIONS, INDIVIDUALS, DELEGATIONS & COMMENDATIONS
Rebecca Otto - Candidate for House District 52B
Ms. Rebecca Otto, a candidate for House District 52B introduced herself and gave her
background as a candidate in the upcoming election. She stated that she welcomes
any input from the Councilor staff on Stillwater issues and looks forward to possibly
working with and for the residents of Stillwater.
Summer Movies in Lowell Park
Ann DeLaVergrie and Joci Tilsen reviewed their request to show movies in Lowell Park
beginning in July.
Councilmember Zoller asked if the Parks Board should review this request.
Councilmember Milbrandt stated that the Parks Board should have the opportunity to
review the request and provide input.
Motion by Councilmember Rheinberger, seconded by Councilmember Milbrandt approving the
request, subject to approval by the Parks Board. All in favor.
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Stillwater City Council Meeting 02-11
June 4, 2002
Leqislative Update - Ed Cain. Leqislative Associates
Mr. Ed Cain, Legislative Associates provided a legislative update to the Council. He
stated that through Governor Ventura's vetoes the City of Stillwater lost approximately
$4.35M in bonding money. He also stated that the only good news was the extension of
the bridge issue for another year. He stated that proposed federal money available for
projects such as the armory is not yet known as the Congress is still in session.
Councilmember Milbrandt asked about the possibility of getting the $1.3M for the North
Hill Project.
Mr. Cain stated that nothing is for sure when it comes to the legislature, however it has
been indicated that the items that the Governor vetoed will be addressed at the
beginning of the next session.
Councilmember Rheinberger stated at what point does the City give up on receiving
state funding and proceed with the project.
Mr. Cain advised that it would be highly unlikely for the City to receive any funds if the
project is started now.
CONSENT AGENDA
Motion by Councilmember Bealka, seconded by Councilmember Rheinberger to approve the
Consent Agenda. All in favor.
Ayes: Councilmember Bealka, Milbrandt, Rheinberger, Zoller and Mayor Kimble
Nays: None
Resolution 2002-123, directing payment of bills
Approval of waiver of garbage and collection charges for application 2002-01 through 2002-
02.
Resolution 2002-124, Change Order 2002 Street Project-Meadowlark Park.
Resolution 2002-125, granting a Municipal License to the Veteran's Memorial Committee
Resolution 2002-126, Approving 2002 Memorandum of Agreement for Drop Off Center
Recycling Grant Distribution with Washington County
Sewer Bill Adjustments
PUBLIC HEARINGS
Application for new wine with stronq beer liquor license requested bv Bricco di Vino. Inc.
(Leslie Alexander) for 102 S. 2nd Street.
Mayor Kimble reviewed the request for a new wine with strong beer liquor license for
102 S. 2nd Street by Bricco di Vino, Inc.
Mayor Kimble opened the public hearing.
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Stillwater City Council Meeting 02-11
June 4, 2002
There were no public comments.
Mayor Kimble closed the public hearing.
Motion by Councilmember Rheinberger, seconded by Councilmember Bealka adopting
Resolution 2002-129, approving new wine license with strong beer option and 3.2% Malt
Liquor License for Bricco di Vino, Inc., DBA: Cesares Wine Bar, subject to inspection and
approvals of the City's Police, Fire, Building and Finance Departments and Minnesota Liquor
Control. All in favor
Ayes: Councilmember Bealka, Milbrandt, Rheinberger, Zoller and Mayor Kimble
Nays: None
Case No. SV/02-21. appeal of the Planninq Commissions decision on a request from Tom
Okerstrom for a street vacation of a 3D-foot allev between South William Street and South
Everett Street between West Olive and West Mvrtle Streets to the rear of 810 Olive Street.
Community Development Director Russell reviewed the request for a street vacation of
a 30-foot alley to the rear of 810 Olive Street. He stated that the Planning Commission
denied the request on a 4-5 vote. He also stated that the Engineering Department also
recommend not to approve this vacation because they would like to maintain public
access to ravines and other public easement for maintenance without having to buy
permission to enter the property.
Mayor Kimble opened the public hearing.
Mr. Tom Okerstrom, 810 Olive Street, stated that he is requesting this vacation because
he wants to do improvements to raise the grade and sod the area to minimize the
erosion that is occurring. He stated he also wants to clean up the rubbish that people
have thrown in the ravine.
Mayor Kimble closed the public hearing.
Councilmember Rheinberger stated he supports the street vacation because the City
has done nothing to the ravine nor does he see anything being done in the future. He
feels it is wrong to tie up property for prospective use in the future especially when
nothing has been done in the past, the City has access to the ravine by other streets,
and private use will enhance property values and allow for the cleanup and
improvement of the area.
Councilmember Zoller stated that he opposes the vacation because access to the
ravine may be needed. He stated that once property is given up it is gone forever and it
is drainage way and then there is the potential of blocking the drainage if it is under
private ownership.
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Stillwater City Council Meeting 02-11
June 4, 2002
Councilmember Rheinberger stated that nothing has been done in the ravine for as long
as he can remember and therefore the vacation should be granted to allow Mr.
Okerstrom to improve the area and the erosion in the area.
Mayor Kimble stated the granting of an easement to maintain access to the ravine
would be a satisfactory compromise. An easement would put restrictions on the
property .
Councilmember Bealka stated there is a potential erosion problem and that people are
trespassing on his property to use the ravine as a dumpsite. He agreed with the Mayor
on the easement aspect of the property owner would agree to providing the easement.
Public Works Director Eckles stated that an easement would maintain access, however
that some past street vacations have been known to be needed in the future for use in
storm water control and suggested that the policy on street vacations be reviewed.
Councilmember Milbrandt asked if the applicant is planning to build on this portion of the
street.
Mr. Okerstrom stated that if the street is vacated he would build right up to the front of
the lot, but he would not build on the easement if that is what Council wishes. He stated
that the back of the lot is not buildable.
Community Development Director Russell stated that by allowing the vacation the
property would be large enough for the property owner to convert his home into a
duplex because it will be over 10,000 square.
Mr. Okerstrom stated it is not his intent to turn his home into a duplex. He stated that if
the vacation is granted that it would allow him to fix the area and build a garage five-feet
further from his home, but that he would build the garage at the allowable location if the
vacation is not granted.
Motion by Councilmember Rheinberger, seconded by Councilmember Bealka approving the
street vacation. Motion failed.
Ayes: Councilmember Bealka, Rheinberger
Nays: Councilmember Zoller Milbrandt, and Mayor Kimble
Motion by Councilmember Zoller to deny the street vacation. Motion failed for lack of second.
Councilmember Milbrandt stated he would like to see a condition of the vacation that the
property owner will not build a duplex because of the acquisition of the extra land.
City Attorney Magnuson stated that that couldn't be part of the conditions of approval
because that would be a separate issue.
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Stillwater City Council Meeting 02-11
June 4, 2002
Motion by Councilmember Milbrandt, seconded by Council member Rheinberger to approve the
vacation conditioned upon the acquisition of an easement for utility, drainage, walkway, and
access and no building can be on the easement and when they build the driveway the must
appear before the Planning Commission to determine proper distance off the easement for the
driveway and adopt Resolution 2002-130, approving street vacation.
Ayes: Councilmember Bealka, Rheinberger and Mayor Kimble
Nays: Councilmember Zoller, Milbrandt
Case No. SUPNI02-26. appeal of the Plannina Commissions decision on a reauest from Tim
and Anita Kornwolf for a variance to the Bed and Breakfast Ordinance for the required distance
separation (900 feet required, 555 feet requested) from another bed and breakfast and special
use permit for a bed and breakfast for the Lammers House, located at 1306 3rd Street South in
the RB. Two Familv Residential District.
Mayor Kimble stated that the applicant has requested that the hearing be continued to
the July 2, 2002 meeting.
Motion by Councilmember Rheinberger, seconded by Councilmember Bealka continuing the
public hearing on Case No. SUPN/02-26 to the July 2, 2002 meeting. All in favor.
UNFINISHED BUSINESS
Possible approval of Cooperative Aqreement (Burlinqton Northern)
City Attorney Magnuson stated that staff has met with representatives of the Burlington
Northern and Santa Fe Railway Company regarding the City's purchase of the land
adjacent to the railroad trans and north of Mulberry Street. He stated that the railroad
company has indicated they are willing to discuss the acquisition of all railroad property
within the City in the downtown and the hiring of one appraiser and the splitting of the
cost of the appraiser. He stated that an agreement has been prepared between the City
and Staubach Global Services the agent for the railroad for the services of Mike
Bettendorf to perform the appraisal.
Mr. Magnuson stated that appraisal information should be available in a couple of
months.
Motion by Councilmember Bealka, seconded by Councilmember Rheinberger adopting
Resolution 2002-131, resolution approving cooperative agreement with Stauback Global
Services as agent of the Burlington Northern and Santa Fe Railway Company. All in favor
Ayes: Councilmember Bealka, Milbrandt, Rheinberger, Zoller and Mayor Kimble
Nays: None
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Stillwater City Council Meeting 02-11
June 4, 2002
North Hilllmprovements/Fundinq
Mayor Kimble explained that if there is not a motion to proceed with the project it would
mean that when the project is considered again, the improvement process would start
over and a public hearing would need to be held.
Public Works Director Eckles reviewed the funding that was vetoed by the Governor.
He stated that if the project were not ordered by July the project would require another
public hearing. He also stated that the Engineering Department is continuing to work
on preliminary drawings, but that if the project is ordered the state funding could be in
jeopardy.
Mr. Eckles recommended that no action be taken to see if the funding is available next
session and then hold another public in the future
Councilmember Rheinberger stated that the project should proceed because there is
not going to be any funding coming from the State because of huge deficits. He
believes Governor Ventura will run again, win, and would not approve the funding, it is
wishful thinking and it is time to face reality and get the project done.
Councilmember Milbrandt stated that we have made too much progress to give up now,
it is a gamble, we have waited a long time for this project but another eight or nine
months is worth the wait. We promised the residents we would try to get the funding and
to everyone's surprise we were very close to that funding. He stated that the City
should try to get the funding at the next legislative session. He also stated that it was
mentioned earlier by Mr. Cain that proceeding with the project may jeopardize the
possibility of getting that funding.
Mayor Kimble stated that there is a good indication that the funding will be addressed at
the beginning of the next session based upon the comments heard there is a good
chance to get this funding and we owe it to the residents of the North Hill to try and get
the funding. He also stated if we do or do not get the funding we hold another public
hearing and inform the residents of the issues.
Councilmember Rheinberger asked how long does the City wait. This issue is going to
turn out like the bridge issue.
Motion by Councilmember Rheinberger, seconded by Councilmember Bealka to proceed with
the project. Motion failed.
Ayes: Councilmember Bealka and Rheinberger
Nays: Councilmember Milbrandt, Zoller and Mayor Kimble
Mayor Kimble recessed the meeting at 7:55 p.m.
Mayor Kimble reconvened the meeting at 8:10 p.m.
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Stillwater City Council Meeting 02-11
June 4, 2002
NEW BUSINESS
Bid Award - 2002 street seal coat proiect
Mayor Kimble reviewed the memo from Assistant City Engineer Sanders.
Motion by Council member Rheinberger, seconded by Council member Zoller to adopt
Resolution 2002-132, accepting bid and awarding contract for 2002 Seal Coat Project (Project
2002-03). All in favor.
Ayes: Councilmember Bealka, Milbrandt, Rheinberger, Zoller and Mayor Kimble
Nays: None
Bid Award- McKusick Ravine Storm sewer improvements and McKusick Lake Diversion
Public Works Director Eckles stated that bids were received on Monday, June 3, 2002
and that the low bidder was Veit & Company, Inc. however their bid document has
significant irregularities and that the bidder failed to provide unit prices for all of the
items on the bid document. He also stated that the second low bidder was $200,000
higher over the low bid and the engineer's estimate, therefore he recommended that the
bid documents be restructured to eliminate some items from the project that pipe and
earthwork contractors do not like to bid on, and bid those items bid separately. It also
appeared that the completion date was a problem for some of the bidders and that
rebidding the project later may provide better bids.
Mr. Eckles stated that it could be rebid in approximately five to six weeks.
Motion by Councilmember Bealka, seconded by Councilmember Milbrandt to adopt Resolution
2002 -133, rejecting bids and authorizing readvertisement for the McKusick Lake Diversion
Project (Project 2002-04). All in favor.
Ayes: Councilmember Bealka, Milbrandt, Rheinberger, Zoller and Mayor Kimble
Nays: None
Feasibilitv report 2002 Sidewalk Proiect
Public Works Director Eckles reviewed the feasibility report for the 2002 Sidewalk
Project. He stated that there are sidewalks throughout the City that are in need of
repair. He stated that there are 56 properties that would be affected by the repairs and
that the total cost of the project is approximately $98,284 with the proposed
assessments to property owners being approximately $49,142 with the remaining cost
being paid by the City. He recommended that a public hearing be set for July 2, 2002 at
7:00 p.m.
Motion by Councilmember Rheinberger, seconded by Council member Milbrandt to adopt
Resolution 2002-134, resolution receiving report and calling for hearing on 2002 Sidewalk
Rehabilitation Project (Project 2002-11). All in favor.
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Stillwater City Council Meeting 02-11
June 4, 2002
Ayes: Councilmember Bealka, Milbrandt, Rheinberger, Zoller and Mayor Kimble
Nays: None
Appointment to Downtown Parkinq Commission
Mayor Kimble reviewed a memo from City Clerk Ward regarding the reappointment of
Jocelyn Tilsen to the Downtown Parking Commission.
Motion by Councilmember Bealka, seconded by Councilmember Rheinberger to adopt
Resolution 2002-135, reappointing Jocelyn Tilsen to the Downtown Parking Commission. All
in favor.
Ayes: Councilmember Bealka, Milbrandt, Rheinberger, Zoller and Mayor Kimble
Nays: None
Motion by Councilmember Rheinberger, seconded by Councilmember Bealka directing staff to
readvertise Downtown Parking Commission openings. All in favor.
COMMUNICATIONS/REQUESTS
Mayor Kimble stated that a check in the amount of $10,000 has been received from the
Bayport Foundation as their contribution to the fireworks display on July 4 and during
Lumberjack Days. He thanked the foundation for the contribution.
COUNCIL REQUEST ITEMS
Councilmember Zoller asked if the letter from Washington County regarding the use of
Community Development Block Grant funds for the South Hill Park improvements
allows the City to order the play equipment.
Community Development Director Russell stated that the City could not order the
equipment prior to the release of the funds.
Councilmember Zoller asked Mr. Russell to find out when the City can order the
equipment.
ADJOURNMENT
Motion by Councilmember Rheinberger, seconded by Councilmember
8:35 p.m.
ATTEST:
A2~ d. LI)tUd-
Diane F. Ward, City Clerk
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Stillwater City Council Meeting 02-11
June 4, 2002
Resolution 2002-127, resolution awarding the sale of, and providing the form, terms
covenants and directions for the issuance of two taxable tax increment revenue notes (Curve
Crest Villa limited partnership project), Series 2002, in the original aggregate principal amount
of $445,000 each.
Resolution 2002-128, resolution calling for a public hearing on proposed property tax
abatements for the Lowell Inn project
Resolution 2002-129, approving new wine license with strong beer option and 3.2% Malt
Liquor License for Bricco di Vino, Inc., DBA: Cesares Wine Bar
Resolution 2002-130, approving street vacation
Resolution 2002-131, resolution approving cooperative agreement with Stauback Global
Services as agent of the Burlington Northern and Santa Fe Railway Company.
Resolution 2002-132, accepting bid and awarding contract for 2002 Seal Coat Project (Project
2002-03).
Resolution 2002 -133, rejecting bids and authorizing readvertisement for the McKusick Lake
Diversion Project (Project 2002-04).
Resolution 2002-134, resolution receiving report and calling for hearing on 2002 Sidewalk
Rehabilitation Project (Project 2002-11).
Resolution 2002-135, reappointing Jocelyn Tilsen to the Downtown Parking Commission
12