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Home My WebLink About1985-12-30 CC MIN . SPECIAL MEETING AGENDA STILLWATER CITY COUNCIL December 30, 1985 CALL TO ORDER ROLL CAlL UNFINISHED BUSINESS 1. Orleans Homes Development Agreement (Arkell Development Co.) 2. 1986 Insurance Proposal 3. 1986 Budget 4. 1986 Labor Contracts STAFF REPORTS 1. City Coordinator 2. Finance Director . COUNCIL REQUEST ITEMS APPLICATIONS NEW BUSINESS . 1. Directing Payment of Bills. (Resolution No. 7556) 4:30 P.M. . . . SPECIAL MEETING STILLWATER CITY COUNCIL MINUTES December 3~, 1985 4:30 P.M. The Meeting was called to order by Mayor Peterson Present: Councilmembers Bodlovick, Junker, Kimble, MacDonald and Mayor Peterson. Absent: Nooe Also Present: City Coordinator Kriesel Finance Director Caruso City Attorney Magnuson City Clerk Johnson Emily Chapman, Stillwater Gazette Elizabeth Carlson, St. Croix Valley Press Press: Others: Dennis Balyeat. Bill Kemp, Ron Langness, John Arkell, Jamie McGovern. UNFINISHED BUSINESS 1. 1986 Insurance Proposal - City Coordinator Kriesel explained the proposal for insurance received from the Minnesota League of Cities. The insurance proposal was as follows: General Liability and Property Workers Compensation Boiler Insurance Total $164,256 101,755 5 008 ~271:~ Mr. Kriesel said that the League offered a refund option on Workers Compensation which could lead to a reduction in Workers Compensation insurance cost by as much as $64,000 and could also lead to an increase of as much as $40,000 depending upon our experience or losses. The City could also pay $6,400 less on the property insurance if the City chose a $5,000 deductible policy on property insurance. Motion by Councilmember Junker, seconded by Councilmember Bodlovick to accept the insurance proposal submitted by the League of Minnesota Insurance Trust, including the refund option on the Workers Compensation pOlicy and the $5,000 deductible on property insurance. (All in favor) 2. Orleans Homes Development Agreement (Arkell Development Co.) - Mr. Bill Kemp, Washington Co. HRA, presented background on the Orleans Homes Devel- opment and stated there is a problem in drafting the Development Agreement for this project. The IRS has ruled that any type of guarantees that the developer gives, exceeding a certain percentage of the overall bond issu- 1 . City Council Minutes Special Meeting December 30, 1985 . ance, makes the bonds taxable. The Treasury Dept. has not allowed the cities to achieve guarantees on the bonds to secure their position, there- by creating problems with tax exempt issues. Discussion followed relating to the risk which would involve the City in re~ard to this project and suggestions for alleviating the risk. Mr. Arkell explained he has offered the City, through the HRA, a $200,000 Performance Bond, but the City can- not take the $200,000 because this exceeds the 5% which the IRS allows. Ron Langness explained that anything beyond 5% is classified as a consumer loan. The $100,000 secured by a Letter of Credit is o.k., but he is con- cerned about the other $100,000 and the purchase of five acres of property at $20,000 an acre. City Attorney Magnuson stated the City would like the maximum amount of guarantee they can get that is permissible under the law. Councilmember Junker suggested negotiating a $100,000 bond with Mr. Emerson, owner of the property, whereby the City would have the option to take that money and Mr. Emerson could take his property back if the pro- ject fails. Then the City would be guaranteed $200,000. Mr. Kemp stated the problem is whether Mr. Emerson would agree to this proposal, because he may have to pay off some assessments. After further discussion, Mr. Arkell stated he would try to negotiate with Mr. Emerson. Mr. Kemp stated they would like to accomplish this Development Agreement as soon as possible. City Attorney Magnuson will work on the Development Agreement with HRA and Mr. Arkell and submit it at the Council Meeting on January 7, 1986. Councilmember Junker left the meeting at 5:50 P.M. Mayor Peterson declared a break for five minutes and the meeting reconvened at 5:55 P.M. INDIVIDUALS & DELEGATIONS . Mr. Jamie McGovern was present to discuss the Liquor License for the Jim Beam's Rye Bar located at 124 N. Main St. The building was closed in July, 1985 by the City because of building code violations and the owner has not taken measures to upgrade the building. Mr. Krebsbach, owner of the business, and Mr. McGovern, who has an interest in the bar, are con- cerned that they retain the license. He stated they have a liquor bond, but do not want to get the liquor liability insurance until the bar reopens. After the building was condemned, Mr. Krebsbach filed bankrupt- cy; also Mr. Krebsbach has a lawsuit against Ms. Melton, owner of the building. This will be settled in late January. City Attorney Magnuson stated the insurance does not need to be provided until just before the place is occupied - approximately five days. He also stated the license is considered an asset to the bankruptcy proceedings and runs to the per- son and the premises, and perhaps the City would not want to issue a li- cense when the business is not operating. Mayor Peterson stated the rea- son the license would not be reissued is because the building is not habi- 2 . . . City Council Minutes Special Meeting December 30, 1985 table. Council discussed the bankruptcy proceedings, issuance of the li- cense, and whether the license would be held for this location and giving a deadline of April 1, 1986 for Mr. Krebsbach's and Mr. McGovern's plan for the business. Motion by Councilmember BOdlovick, seconded by Councilmember MacDonald to deny renewal of a Regular On-Sale Liquor License to Jim Beam's Rye, Inc. at 124 No. Main Street because the building is not habitable and has been closed due to code violations; and to refund the fee of $2,200 to Mr. McGovern paid for the 1986 Regular and Sunday Liquor License. (Ayes - 3, Nays 1; Councilmember Kimble voted Nay, Mayor Peterson voted Aye.) Mayor Peterson stated Mr. Krebsbach and Mr. McGovern should come back be- fore Council by April 1, 1986, when they have developed plans for Jim Beam's Rye, Inc. and Council will give them consideration. Mr. McGovern asked if the license will be given to anyone else and Council replied they do not have plans for doing so at this time and would like to see his plans first. UNFINISHED BUSINESS (Continued) 3. ,1986 Budget - Finance Director Caruso presented a review of the recom- mended budget for 1986. She explained that nothing is being added to sur- plus, that it will decrease about $2,000. Ms. Caruso also distributed a letter from Arne Carlson, State Auditor in regard to revenue stress in the State of Minnesota. They are projecting a shortfall in state revenues and much of this will come from State Aid funds to cities. She advised Coun- cil that the budget should be closely monitored. Discussion followed on how to build a surplus into the budget, adjustments and cuts that could be made. Lynn Bertalmio was also present to speak of the Library needs. Ms. Caruso stated budget adjustments could be made during the year. Council advised that a memo be sent to Department Heads recommending that caution be used in spending. Motion by Councilmember Kimble, seconded by Councilmember Bodlovick to adopt the appropriate resolution approving the:1986 Budget as presented by Finance Director Caruso, with reservation and with notice to all Department Heads that adjustments will be made and to closely limit any expenditures beyond that which is absolutely essential. (Resolution No. 7557) Ayes -- Councilmembers Bodlovick, Kimble, MacDonald and Mayor Peterson. Nays -- None Ms. Caurso asked if the motion included Capital Outlay and after a short discussion, it was stated that Capital Outlay was included because this must be approved by Council before purchases are made. Mayor Peterson 3 . . . City Council Minutes Special Meeting December 30, 1985 advised Mr. Kriesel and Ms. Caruso that a memo to this effect should be sent to Department Heads. STAFF REPORTS 1. Citl Coordinator - Mr. Kriesel presented a request from a resident on Lookout Street asking that the City install a street light on this street. Motion by Councilmember MacDonald, seconded by Councilmember Kimble to install a streetlight on Lookout Street. (All in favor) Mr. Kriesel stated he had met with Mike McGuire, City Attorney Magnuson and Mr. McGuire's attorney in regard to Mr. McGuire's proposed restaurant on the St. Croix River. He explained the timing is too short to hire a Planner to help review the plans for the Public Hearing on the restaurant and recommended proceeding without a Planner. He also requested resche- duling the Public Hearing from the date of January 21 to early February because of Dept. of Natural Rp.sources required dates for submittal of per- tinent data. Motion by Councilmember Kimble, seconded by Councilmember MacDonald to set the Public Hearing date of February 5, 1986 for the restaurant proposed by Mike McGuire on the St. Croix River. (All in favor) Mr. Kriesel requested a special meeting with Department Heads to discuss salaries. Motion by Councilmember Kimble, seconded by Councilmember MacDonald to set the date of January 14, 1986 at 4:30 P.M. as a Special Meeting to discuss salaries with Department Heads. (All in favor) Mr. Kriesel stated approximately 25 applications have been received for Zoning Administrator. The applications will be copied and submitted to Council and they will be returned to Mr. Kriesel by January 14 in order to set interviews. NEW BUSINESS 1. Directing Payment of Bills - Motion by Councilmember MacDonald, seconded by Councilmember Kimble to adopt the appropriate resolution Directing the Payment of Bills. (Resolution No. 7556) Ayes - Councilmember BOdlovick, Kimble, MacDonald and Mayor Peterson. Nays - None 4 . . . City Council Minutes Special Meeting December 30, 1985 APPLICATIONS CONTRACTORS Motion by Councilmember MacDonald, seconded by Councilmember Kimble to approve the following Contractor's Applications: (All in favor) George W. Olsen Construction Co., Inc. Gen. Contractor P.O. Box 20 Stillwater, Mn., 55082 Suburban Lighting Sign Erection 6077 Lake Elmo Ave. N. Stillwater, Mn. 55082 Renewal Renewal Croixland Excavating Excavators 10003 Mendel Rd. N. Stillwater, Mn. 55082 Renewa I REGULAR ON-SALE LIQUOR LICENSES Motion by Councilmember Bodlovick, seconded by Councilmember Kimble, to ap- prove the following Regular On-Sale Liquor License: (All in favor) Freight House Restaurant, Inc. (Robert Sabes) 305 So. Water Street Renewal SPECIAL SUNDAY ON-SALE LIQUOR LICENSE Motion by Councilmember Bodlovick, seconded by Councilmember Kimble, to ap- prove the following Special Sunday On-Sale Liquor License: (All in favor) Freight House Restaurant (Robert Sabes) 305 So. Water Street Renewal OFF-SALE NON-INTOXICATING MALT LIQUOR LICENSES Motion by Councilmember Kimble, seconded by Councilmember MacDonald to approve the following Off-Sale Non-Intoxicating Malt Liquor Licenses: (All in favor) Food-n-Fuel, Inc. 1101 No. Owens St. Renewa I Tom Thumb Food Market 2501 W. Orleans St. Renewal 5 . . City Council Minutes Special Meeting December 30, 1985 Motion by Councilmember Kimble, seconded by Councilmember MacDonald to approve the Findings of Fact for the Stillwater Yacht Club Variance to the FloodplaIn and Blufflan~ prdinance, subject to the Scribner's change as presented by City Attorney Magnuson. (All in favor) ADJOURNMENT Motion by Councilmember Bodlovick, seconded by Councilmember MacDonald to ad- journ the meeting to Executive Session at 7:00 P.M. (All in favor) Resol utions: No. 7556 - Directing Payment of Bills. No. 7557 - Adoption of 1986 Budget. .z1uy,Jj At:'/A' ATTEST: ~t:X'~ f CITY CLEV 7 (' SPECIAL MEETING STILLWATER CITY COUNCIL M IN UTES December 3fr, 1985 4:30 P.M. The Meeting was called to order by Mayor Peterson Present: Councilmembers Bodlovick, Junker, Kimble, MacDonald and Mayor Peterson. Absent: None Press: City Coordinator Kriesel Finance Director Caruso City Attorney Magnuson City Clerk Johnson Emily Chapman, Stillwater Gazette Elizabeth Carlson, St. Croix Valley Press Also Present: Others: Dennis Balyeat, Bill Kemp, Ron Langness, John Arkell, Jamie McGovern. UNFINISHED BUSINESS r- 1. 1986 Insurance profosal - City Coordinator Kriesel explained the proposal for insurance rece ved from the Minnesota League of Cities. The insurance proposal was as follows: General Liability and Property Workers Compensation Boiler Insurance Total $164,256 101,755 5 008 )271:01}l Mr. Kriesel said that the League offered a refund option on Workers Compensation which could lead to a reduction in Workers Compensation insurance cost by as much as $64,000 and could also lead to an increase of as much as $40,000 depending upon our experience or losses. The City could also pay $6,400 less on the property insurance if the City chose a $5,000 deductible policy on property insurance. Motion by Councilmember Junker, seconded by Councilmember Bodlovick to accept the insurance proposal submitted by the League of Minnesota Insurance Trust, including the refund option on the Workers Compensation policy and the $5,000 deductible on property insurance. (All in favor) 2. Orleans Homes Development Agreement (Arkell Development Co.) - Mr. Bill Kemp, Washington Co. HRA, presented background on the Orleans Homes Devel- opment and stated there is a problem in drafting the Development Agreement for this project. The IRS has ruled that any type of guarantees that the developer gives, exceeding a certain percentage of the overall bond issu- 1 r (' City Council Minutes Special Meeting December 30, 1985 r ance, makes the bonds taxable. The Treasury Dept. has not allowed the cities to achieve guarantees on the bonds to secure their position, there- by creating problems with tax exempt issues. Discussion followed relating to the risk which would involve the City in regard to this project and suggestions for alleviating the risk. Mr. Arkell explained he has offered the City, through the HRA, a $200,000 Performance Bond, but the City can- not take the $200,000 because this exceeds the 5% which the IRS allows. Ron Langness explained that anything beyond 5% is classified as a consumer loan. The $100,000 secured by a Letter of Credit is o.k., but he is con- cerned about the other $100,000 and the purchase of five acres of property at $20,000 an acre. City Attorney Magnuson stated the City would like the maximum amount of guarantee they can get that is permissible under the law. Councilmember Junker suggested negotiating a $100,000 bond with Mr. Emerson, owner of the property, whereby the City would have the option to take that money and Mr. Emerson could take his property back if the pro- ject fails. Then the City would be guaranteed $200,000. Mr. Kemp stated the problem is whether Mr. Emerson would agree to this proposal, because he may have to pay off some assessments. After further discussion, Mr. Arkell stated he would try to negotiate with Mr. Emerson. Mr. Kemp stated they would like to accomplish this Development Agreement as soon as possible. City Attorney Magnuson will work on the Development Agreement with HRA and Mr. Arkell and submit it at the Council Meeting on January 7, 1986. Councilmember Junker left the meeting at 5:50 P.M. Mayor Peterson declared a break for five minutes and the meeting reconvened at 5:55 P.M. INDIVIDUALS & DELEGATIONS Mr. Jamie McGovern was present to discuss the Liquor License for the Jim Beam's Rye Bar located at 124 N. Main St. The building was closed in July, 1985 by the City because of building code violations and the owner has not taken measures to upgrade the building. Mr. Krebsbach, owner of the business, and Mr. McGovern, who has an interest in the bar, are con- cerned that they retain the license. He stated they have a liquor bond, but do not want to get the liquor liability insurance until the bar reopens. After the building was condemned, Mr. Krebsbach filed bankrupt- cy; also Mr. Krebsbach has a lawsuit against Ms. Melton, owner of the building. This will be settled in late January. City Attorney Magnuson stated the insurance does not need to be provided until just before the place is occupied - approximately five days. He also stated the license is considered an asset to the bankruptcy proceedings and runs to the per- son and the premises, and perhaps the City would not want to issue a li- cense when the business is not operating. Mayor Peterson stated the rea- son the license would not be reissued is because the building is not habi- ~ 2 r City Council Minutes Speci al Meeting December 30, 1985 table. Council discussed the bankruptcy proceedings, issuance of the li- cense, and whether the license would be held for this location and giving a deadline of April 1, 1986 for Mr. Krebsbach's and Mr. McGovern's plan for the business. Motion by Councilmember Bodlovick, seconded by Councilmember MacDonald to deny renewal of a Regular On-Sale Liquor License to Jim Beam's Rye, Inc. at 124 No. Main Street because the building is not habitable and has been closed due to code violations; and to refund the fee of $2,200 to Mr. McGovern paid for the 1986 Regular and Sunday Liquor License. (Ayes - 3, Nays 1; Councilmember Kimble voted Nay, Mayor Peterson voted Aye.) Mayor Peterson stated Mr. Krebsbach and Mr. McGovern should come back be- fore Council by April 1, 1986, when they have developed plans for Jim Beam's Rye, Inc. and Council will give them consideration. Mr. McGovern asked if the license will be given to anyone else and Council replied they do not have plans for doing so at this time and would like to see his plans first. UNFINISHED BUSINESS (Continued) (' 3. ,1986 Budget - Finance Director Caruso presented a review of the recom- mended budget for 1986. She explained that nothing is being added to sur- plus, that it will decrease about $2,000. Ms. Caruso also distributed a letter from Arne Carlson, State Auditor in regard to revenue stress in the State of Minnesota. They are projecting a shortfall in state revenues and much of this will come from State Aid funds to cities. She advised Coun- cil that the budget should be closely monitored. Discussion followed on how to build a surplus into the budget, adjustments and cuts that could be made. Lynn Bertalmio was also present to speak of the Library needs. Ms. Caruso stated budget adjustments could be made during the year. Council advised that a memo be sent to Department Heads recommending that caution be used in spending. Motion by Councilmember Kimble, seconded by Councilmember Bodlovick to adopt the appropriate resol ut i on approving the.;1986 Budget as presented by Finance Director Caruso, with reservation and wfth notice to all Department Heads that adjustments will be made and to closely limit any expenditures beyond that which is absolutely essential. (Resolution No. 7557) Ayes Councilmembers Bodlovick, Kimble, MacDonald and Mayor Peterson. Nays None Ms. Caurso asked if the motion included Capital Outlay and after a short discussion, it was stated that Capital Outlay was included because this must be approved by Council before purchases are made. Mayor Peterson r 3 (' City Council Minutes Special Meeting Decem~er 30, 1985 advised Mr. Kriesel and Ms. Caruso that a memo to this effect should be sent to Department Heads. STAFFI REPORTS 1. ~ Coordinator - Mr. Kriesel presented a request from a resident on Llo~out Street asking that the City install a street light on this street. Motion by Councilmember MacDonald, seconded by Councilmember Kimble to install a streetlight on Lookout Street. (All in favor) Mr. Kriesel stated he had met with Mike McGuire, City Attorney Magnuson and Mr. McGuire's attorney in regard to Mr. McGuire's proposed restaurant on the St. Croix River. He explained the timing is too short to hire a Planner to help review the plans for the Public Hearing on the restaurant and recommended proceeding without a Planner. He also requested resche- duling the Public Hearing from the date of January 21 to early February because of Dept. of Natural Resources required dates for submittal of per- t i nent data. (' Motion by Councilmember Kimble, seconded by Councilmember MacDonald to set the Public Hearing date of February 5, 1986 for the restaurant proposed by Mike McGuire on the St. Croix River. (All in favor) Mr. Kriesel requested a special meeting with Department Heads to discuss salaries. Motion by Councilmember Kimble, seconded by Councilmember MacDonald to set the date of January 14, 1986 at 4:30 P.M. as a Special Meeting to discuss salaries with Department Heads. (All in favor) Mr. Kriesel stated approximately 25 applications have been received for Zoning Administrator. The applications will be copied and submitted to Council and they will be returned to Mr. Kriesel by January 14 in order to set interviews. NEW BUSINESS 1. Directing Payment of Bills - Motion by Councilmember MacDonald, seconded by Councilmember Kimble to adopt the appropriate resolution Directing the Payment of Bills. (Resolution No. 7556) Ayes - Councilmember Bodlovick, Kimble, MacDonald and Mayor Peterson. Nays - None 4 (' - r City Council Minutes Special Meeting December 30, 1985 APPLICATIONS CONTRACTORS Motion by Councilmember MacDonald, seconded by Councilmember Kimble to approve the following Contractor's Applications: (All in favor) George W. Olsen Construction Co., Inc. Gen. Contractor P.O. Box 20 Stillwater, Mn., 55082 Suburban Lighting Sign Erection 6077 Lake Elmo Ave. N. Stillwater, Mn. 55082 Renewal Renewal Croixland Excavating Excavators 10003 Mendel Rd. N. Stillwater, Mn. 55082 Renewal REGULAR ON-SALE LIQUOR LICENSES r Motion by Councilmember Bodlovick, seconded by Councilmember Kimble, to ap- prove the following Regular On-Sale Liquor License: (All in favor) Freight House Restaurant, Inc. (Robert Sabes) 305 So. Water Street Renewal SPECIAL SUNDAY ON-SALE LIQUOR LICENSE Motion by Councilmember Bodlovick, seconded by Councilmember Kimble, to ap- prove the following Special Sunday On-Sale Liquor License: (All in favor) Freight House Restaurant (Robert Sabes) 305 So. Water Street Renewal OFF-SALE NON-INTOXICATING MALT LIQUOR LICENSES Motion by Councilmember Kimble, seconded by Councilmember MacDonald to approve the following Off-Sale Non-Intoxicating Malt Liquor Licenses: (All in favor) Food-n-Fuel, Inc. 1101 No. Owens St. Renewal Tom Thumb Food Market 2501 W. Orleans St. Renewal r 5 - n City Council Minutes Sped al Meeting December 30, 1985 CIGARETTE LICENSES Motion by Councilmember Bodlovick, seconded by Councilmember Kimble to approve the following Cigarette Licenses: (All in favor) Food-N-Fuel, Inc. 1101 N. Owens St. Renewa I The Freighthouse Restaurant 305 So. Water St. Renewa I Tom Thumb Food Market 2501 W. Orleans St. Renewa I COUNCIL REQUEST ITEMS 0. Mayor Peterson initiated a discussion of the terms of committee and commis- sion members that are expiring and submitted the following: Recreation Commission - John Benson and Linda Kluy will continue to serve, although Ms. Kluy will not serve as Chairperson. Tom Thoreson will replace Dennis Sullivan. Library Board - Jean Morse and Raymond Marshall will continue to serve. Jon Swenson will not continue to serve and another name will be submitted by the Library Board. Park Board - Tom Lammers will continue to serve on the Park Board. Port Authority - Jack Hooley will not continue to serve and will be replaced by Barrett Colombo and ErIe Orff will continue to serve. Motion by Councilmember MacDonald, seconded by Councilmember Kimble to confirm the above appointments to the named committees and commissions. (All in favor) STAFF REPORTS (Continued) City Attorney Magnuson explained when there is a variance to the Flood- plain and Bluffland Ordinances that findings of fact be made so that the officials of the State and Federal Government can see that the City has the regulations in place and they are being followed. He presented the findings for the Stillwater Yacht Club when they built their deck on the side of the building. This has been presented to Molly Comeau of the DNR and there is one small scribner's change that will be made. n 6 - r- ~ r r , City Council Minutes Special Meeting December 30, 1985 Motion by Councilmember Kimble, seconded by Councilmember MacDonald to approve the Findings of Fact for the Stillwater Yacht Club Variance to the Floodplain and Bluffland Ordinance, subject to the Scribner's change as presented by City Attorney Magnuson. (All in favor) ADJOURNMENT Motion by Councilmember Bodlovick, seconded by Councilmember MacDonald to ad- journ the meeting to Executive Session at 7:00 P.M. (All in favor) Resolutions: No. 7556 - Directing Payment of Bills. No. 7557 - Adoption of 1986 Budget. ATTEST: ~(:;("~ CITY L 7 . . RECORD OF KKECU'fI\fR SESSION " convened: Mo~day, DecE'.mber :10, 1985 ~ convened: 7:00 p.m. "djourn",d' 7:45p.m. ;""n; present: llodlolli.ck, Peterson, Kimble, Junk<,_r ""d MacDonald hersabsIOnt:: N0ne o present: Ci ly Coordinator K~L"sel, City At\:oICney Magnuson t'ose of F..><"cutiveSession: To discuss h.b"r contract negoU.ations with police ,_. , .He un~on. ion tiih,n: lrac'_s. City Com-din"tor dired:"d lo continue Lu negotiate lahar _est: y;4 :l uc// ',d- / /" ~ ( (;Z /</Vck~ ." C~tr COo~dl~"tor