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CITY COUNCIL MEETING MINUTES
July 3,2018
REGULAR MEETING 4:30 P.M.
Mayor Kozlowski called the meeting to order at 4:30 p.m.
Present: Mayor Kozlowski, Councilmembers Menikheim, Junker and Polehna
Absent: None
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
OTHER BUSINESS
GreenStep Cities discussion
Community Development Director Turnblad explained that the 2040 Comprehensive Plan
Advisory Committee would like Stillwater to become a GreenStep City. Becoming a GreenStep
City would require the dedication of human and other resources. The magnitude of resources
would depend upon which of several levels of commitment are chosen. Staff believes that setting
a Step Two City goal is manageable. For this, the City would be required to implement 8 of the
program's 29 best practices.
Councilmember Polehna asked would it benefit the City. Mr. Turnblad replied that it raises
awareness that the City is conserving resources.
Mayor Kozlowski asked Mr. Turnblad to bring back a list of practices already being employed by
the City.
Councilmember Menikheim said he would like to see groups like the pollinator friendly group,
Chestnut Street plaza planning group, Main Street steps landscaper, and Stillwater Sustainability
help implement and advocate the best practices, so it is not just the City's responsibility.
Mr. Turnblad agreed to review the 29 best management practices and bring back a status check
for Council.
Insurance Workgroup Update and possible approval of resolutions for Employee Basic Life Insurance
Policy and Employee Ancillary Insurance
City Administrator McCarty reviewed the life insurance provided to City employees. Staff
recommends increasing its employee basic life insurance policy from $20,000 to $30,000
effective September 1, 2018, through Lincoln Financial as part of the NJPA trust represented by
Integrity Benefits, LLC. Staff also recommends accepting Integrity Benefits, LLC proposal for
City Council Meeting July 3, 2018
employee voluntary life and accidental death and dismemberment insurance,voluntary short term
disability and voluntary long term disability insurance effective September 1, 2018.
Motion by Councilmember Junker, seconded by Councilmember Menikheim, to adopt Resolution
2018-142, approving City of Stillwater employee basic life insurance policy effective September 1,
2018.
Ayes: Councilmembers Menikheim, Junker, Polehna and Mayor Kozlowski
Nays: None
Motion by Councilmember Polehna, seconded by Councilmember Junker,to adopt Resolution 2018-
143, approving Integrity Benefit LLC's proposal for employee voluntary ancillary life insurance
policies effective September 1, 2018.
Ayes: Councilmembers Menikheim, Junker, Polehna and Mayor Kozlowski
Nays: None
Recommendation on City Attorney Civil & Prosecutorial Services
City Administrator McCarty stated that the City received seven proposals from law firms for civil
services, with annual retainer costs varying from $16,500 - $90,000. A Selection Committee,
consisting of Mayor Kozlowski, Councilmember Weidner, the Chief of Police, Community
Development Director, Public Works Director, City Clerk, IT Manager and City Administrator,
evaluated the proposals. They conducted interviews with the top firms and determined that the
proposal submitted by LeVander, Gillen & Miller P.A. for civil legal services with an annual
retainer of$75,000 for three years best meets the standards of the RFP. Ms. Korine Land would
be the attorney designated to attend the City Council meetings.
Motion by Councilmember Junker, seconded by Councilmember Polehna,to adopt Resolution 2018-
144,accepting the proposal of Levander, Gillen&Miller P.A. for provision of civil legal services for
the City of Stillwater effective August 1, 2018.
Ayes: Councilmembers Menikheim, Junker, Polehna and Mayor Kozlowski
Nays: None
Mr. McCarty explained that the City received five proposals from law firms for prosecutorial
services, with annual retainer costs varying from $90,000 - $120,000. A Selection Committee,
consisting of Mayor Kozlowski, Councilmember Weidner, the Chief of Police, Investigative
Sergeant, Police Department Data Specialist, City Planner and City Administrator, evaluated the
proposals. They conducted interviews with the top firms and determined that the proposal
submitted by Kelly & Lemmons P.A. for criminal prosecution legal services with an annual
retainer of$99,996 for three years best meets the standards of the RFP. Mr. Joe Kelly would be
the City's primary prosecuting attorney.
Motion by Councilmember Junker, seconded by Councilmember Polehna,to adopt Resolution 2018-
145, accepting the proposal of Kelly & Lemmons P.A. for provision of criminal prosecutorial legal
services for the City of Stillwater effective August 1, 2018.
Ayes: Councilmembers Menikheim, Junker, Polehna and Mayor Kozlowski
Nays: None
Page 2 of 9
City Council Meeting July 3, 2018
STAFF REPORTS
Police Chief Gannaway informed the Council that most of the Police Department will be working
on July 4. He said to be prepared for traffic delays after the fireworks due to construction
throughout the City.
Community Development Director Turnblad stated the City has updated its maps and address lists
in preparation for the 2020 Census.
Public Works Director Sanders reported that the contractor will start downtown work next week.
City Administrator McCarty reminded the Council of the Workshop on the Water July 11. He
stated the 2019 budget process is underway. Last week the Supreme Court issued a decision that
fair share fees paid by employees who are not union members are non-constitutional and the City
is notifying affected employees. He acknowledged a communication from the Minnesota Board
of Peace Officers Standards and Training stating that the City is in compliance with all standards
in regard to training.
Mayor Kozlowski recessed the meeting at 5:30 p.m.
RECESSED MEETING 7:00 P.M.
Mayor Kozlowski called the meeting to order at 7:00 p.m.
Present: Mayor Kozlowski, Councilmembers Menikheim, Junker and Polehna
Absent: None
Staff present: City Administrator McCarty
City Attorney Magnuson
Police Chief Gannaway
Fire Chief Glaser
Public Works Director Sanders
Community Development Director Turnblad
City Clerk Ward
PLEDGE OF ALLEGIANCE
Mayor Kozlowski led the Council and audience in the Pledge of Allegiance.
APPROVAL OF MINUTES
Possible approval of the June 19, 2018 regular meeting minutes
Motion by Councilmember Junker, seconded by Councilmember Polehna, to approve the minutes of
the June 19, 2018 regular meeting. All in favor.
PETITIONS, INDIVIDUALS,DELEGATIONS & COMMENDATIONS
There were no petitions, individuals, delegations or commendations.
Page 3 of 9
City Council Meeting July 3, 2018
OPEN FORUM
John Bourdaghs, Shorty's Cleaners, informed the Council the building has been tagged and he
would like a response from the Police Department. Police Chief Gannaway responded there is an
ongoing investigation and he will keep the property owner informed.
CONSENT AGENDA
Resolution 2018-137, directing the payment of bills
Resolution 2018-138,resolution for State Grant Assistance for St. Croix Riverbank
Restoration and Walkway
Resolution 2018-139, approving Access Agreement with Kraemer North America, LLC
Resolution 2018-140, approval of appointment to Traffic Safety Committee
Possible approval of final contract language of 2018 Lumberjack Days Agreement
Resolution 2018-141,resolution accepting cash donations
Motion by Councilmember Polehna, seconded by Councilmember Junker, to adopt the Consent
Agenda.
Ayes: Councilmembers Menikheim, Junker, Polehna and Mayor Kozlowski
Nays: None
PUBLIC HEARINGS
Case 2017-68. A public hearing to reconsider a request by Michael McGrath,property owner for the
reconsideration of a Zoning Text Amendment to allow retail use in the BP-I district by Special Use
Permit for the property located at 1815 Greeley Street South in the BP-I District.
Community Development Director Turnblad stated that Michael McGrath, 1815 Greeley, LLC,
has applied for a Zoning Text Amendment to allow for the continued use of a tenant space in 1815
Greeley Street South by Sew With Me, which sells sewing machines as a component of their
business. The property is zoned BP-I, Business Park—Industrial,which only allows for retail sales
of products manufactured on-site. The business in question does not qualify for this allowance.
So,the building owner is asking to allow limited retail sales of products not manufactured on-site.
On June 19, 2018, the Council tabled the reading for staff to draft two different versions of an
ordinance amending the zoning text. Mr. Turnblad explained Versions A and B of the ordinance
written by staff for Council consideration. Versions A and B both allow Sew With Me to remain
in the building. Version A is less restrictive than Version B.
Councilmember Polehna asked if this zoning issue should be addressed as part of the
Comprehensive Plan update. Mr. Turnblad replied the ordinance addresses 10% of a building
space, which is a little more flexible but still limits the retail uses.
Mayor Kozlowski said he prefers Version B and would like to see an inventory of buildings in
the BP-I zone to evaluate the potential for redevelopment before opening up the zoning district to
further retail use.
Councilmember Polehna said he is in favor of Version B right now but asked what if the
Comprehensive Plan Advisory Committee disagrees.
Mr. Turnblad replied a Council is never prevented from correcting its actions, however,
legitimizing the use makes it grandfathered if the Council changes the ordinance in the future.
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City Council Meeting July 3, 2018
Councilmember Junker predicted the Council will see more of this type of issue in the future as
bigger manufacturing uses downsize and create smaller spaces in their buildings. He prefers
Version A.
Mayor Kozlowski opened the public hearing. There were no public comments. He closed the
public hearing.
Motion by Councilmember Polehna, seconded by Councilmember Menikheim, to adopt first reading
of an ordinance amending the Stillwater City Code Section 31-325, Allowable Uses in Non-
Residential Districts (Version B).
Ayes: Councilmembers Menikheim and Polehna, Mayor Kozlowski
Nays: Councilmember Junker
Case 2018-29. A public hearing to consider a request by Craig Wahlquist, property owner and Dan
Thurmes, applicant for a Preliminary Plat and Zoning Classification Amendment that would rezone
and subdivide the single lot into three lots. Property located at 7990 Neal Ave N in the AP district.
Community Development Director Turnblad informed the Council that Dan Thurmes,
Cornerstone Land Surveying, representing Craig Wahlquist, requests approval to re-plat the
property at 7990 Neal Avenue North. The subdivision would create three residential lots. One of
the lots would be for the existing Wahlquist homestead. The other two would be vacant lots. The
request also includes a rezoning from AP, Agricultural Preservation, to RA, One Family
Residential, as well as preliminary and final plat approvals. In addition, the perimeter utility
easements for the existing platted lot will need to be vacated in order to create utility easements
around the re-platted lots. The Planning Commission unanimously recommended approval. Staff
recommends approval with eight conditions attached to the Preliminary Plat, contingent upon
approval of a fee payment in lieu of land dedication by the Park Commission which will hear the
case at its July 23 meeting.
Mayor Kozlowski opened the public hearing.
Dan Thurmes, applicant, stated they would like to solicit buyers/builders to buy the two lots and
at that time the building will handle drain field removal and hook up. If that doesn't work, they
would like to have a temporary easement and work out the details with the proposed builder/buyer.
Mayor Kozlowski closed the public hearing.
Ayes: Councilmembers Menikheim, Junker, Polehna and Mayor Kozlowski
Nays: None
Motion by Councilmember Polehna, seconded by Councilmember Junker,to adopt first reading of an
Ordinance amending the Stillwater City Code Chapter 31, entitled Zoning Ordinance, by amending
the Zoning Map of the City to rezone certain property within the AP Agricultural Preservation District
by adding them to the RA One-Family Residential District; and to adopt Resolution 2018-146A, a
resolution vacating the drainage and utility easements in Lot 4, Block 2, Neal Meadows, Case No.
2018-29; and to adopt Resolution 2018-146B, a resolution approving the preliminary plat for Neal
Meadows 5th Addition, Case No. 2018-29,with eight conditions recommended by staff; and to adopt
Resolution 2018-146C, a resolution approving the final plat for Neal Meadows 5th Addition, Case
No. 2018-29.
Ayes: Councilmembers Menikheim, Junker, Polehna and Mayor Kozlowski
Nays: None
Page 5 of 9
City Council Meeting July 3, 2018
Case 2018-27. A public hearing to consider a request by Bill Turnblad, representing the City of
Stillwater, for a Zoning Ordinance Amendment that would allow outside events in the PA, Public
Administration/Institutional Zoning District by Special Use Permit. If the Ordinance is approved,
consider a Special Use permit for the Stillwater Public Library to hold outside events.Property located
at 224 3rd St N in the PA, Public Administration/Institutional Zoning District.
Community Development Director Turnblad presented a first draft of an ordinance that would
allow the Library to operate outside events by Special Use Permit, and a first draft of a Special
Use Permit Resolution for the Library for informational purposes. If the ordinance is passed,then
the Library would apply for the Special Use Permit and go through a separate hearing process. He
stated that the Planning Commission unanimously recommended approval of the proposed
ordinance amendment and staff recommends approval as well.
Mayor Kozlowski opened the public hearing. There were no public comments. Mayor Kozlowski
closed the public hearing.
Motion by Councilmember Menikheim, seconded by Councilmember Junker,to hold first reading of
an ordinance amending the Stillwater City Code Section 31-325, Allowable Uses in Non-Residential
Districts.
Ayes: Councilmembers Menikheim, Junker, Polehna and Mayor Kozlowski
Nays: None
Case 2018-14.A public hearing to consider a request by the City of Stillwater,applicant, for a Zoning
Text Amendment(ZAT) to regulate wireless facilities in City Code Section 31-101: Definitions, 31-
209: Design Permit, 31-400: Floodplain Overlay District, and Section 31-512: Regulation of Radio
and Television Towers.
Mr.Turnblad stated that the City has been developing an ordinance to regulate the next generation
of wireless communications technology. The Planning Commission recommended approval of a
draft of the ordinance. The next step in the adoption process is for the City Council to hold a
public hearing and consider the first reading. Xcel Energy does not agree with the applicability of
the proposed regulations. Since they own 95%of the poles upon which most of the 5G equipment
is likely to be installed, it is important to address the disagreement. Staff requests this be pulled
from the agenda and the public hearing be rescheduled for a future date. Councilmembers
concurred with the request.
UNFINISHED BUSINESS
Possible approval of the second reading an ordinance amending Chapter 30 of the City Code,entitled
Garbage and Rubbish and adoption of resolution amending Resolution 2018-022, 2018 fee schedule
for licensing of haulers and providers of roll off containers.
City Clerk Ward explained that at the first reading on June 19, Council directed staff to remove
the operation hours in commercial areas and only regulate hours in the residential areas, which
has been done. She also stated that hauler license fees in Washington County averaged
approximately $294 and that staff recommends setting $300 for a hauler's license and $50 for a
roll off-only license, to be included in the 2018 Fee Schedule, however the actual licensing of
haulers would not begin until January 1, 2019.
Motion by Councilmember Junker, seconded by Councilmember Menikheim, to adopt Ordinance
1106, an ordinance amending Chapter 30 of the Stillwater City Code entitled Garbage and Rubbish,
and to adopt Resolution 2018-147,resolution amending Resolution 2018-22,2018 Fee Schedule.
Page 6 of 9
City Council Meeting July 3, 2018
Ayes: Councilmembers Menikheim, Junker, Polehna and Mayor Kozlowski
Nays: None
Request by Forge & Foundry Distillery for a Special Use Permit in the Old Armory. Referred by
Planning Commission.
Community Development Director Turnblad requested this item and the possible approval of Old
Armory parking agreement (under NEW BUSINESS) be tabled until the July 17, 2018 meeting.
Motion by Councilmember Polehna, seconded by Councilmember Menikheim, to table a request by
Forge& Foundry Distillery for a Special Use Permit in the Old Armory, and the possible approval of
Old Armory parking agreement(NEW BUSINESS), to July 17, 2018.
Ayes: Councilmembers Menikheim, Junker, Polehna and Mayor Kozlowski
Nays: None
Discussion on Mills on Main commercial garage
Community Development Director Turnblad stated that on May 1, 2018 the Council heard a
request by the owner of the commercial garage in the Mills on Main facility to delete Condition
6(J) of their Special Use Permit(Resolution 2003-214). Condition 6(J) states that all commercial
parking is to be available for use by the general public during the hours when the commercial
properties are not open for business. The City Council held a public hearing, heard testimony,
closed the public hearing, and considered the request. A decision was tabled to give time for the
owner to work with City staff to find a solution other than simply deleting the condition. The
primary solution sought has been to negotiate with Hotel Lora to valet park their room guest
vehicles in the Mills on Main commercial garage rather than in the public parking system.
However, Hotel Lora was not interested. Consequently, there is no solution being contemplated
at the moment other than some type of payment to the public parking system to offset deleting the
condition. The decision deadline for this request is July 14, 2018. Since a decision would have to
be made on July 3 to meet the deadline,and a solution is not ready yet,the applicant has extended
the deadline for a month to August 14th. Staff would like to table the items until July 17.
Possible approval of bids for the Third Street Improvement project
Public Works Director Sanders stated that bids for the Third Street South Improvement Project
were opened on June 26. The County received one bid from Meyer Contracting Inc. in the amount
of$2,327,340.09. Of that cost, the City will be responsible for $431,181.29. These costs would
be paid for by assessments,the Water Board,the Sewer Fund and the City. The project will begin
in mid-July and be completed in mid-September, closing the road completely for eight weeks.
Staff recommends that the Council accept the bids submitted for the South Third Street
Improvement, Project 2018-09.
Motion by Councilmember Junker, seconded by Councilmember Polehna,to adopt Resolution 2018-
148, accepting bid for Third Street Improvement Project(Project 2018-09).
Ayes: Councilmembers Menikheim, Junker, Polehna and Mayor Kozlowski
Nays: None
NEW BUSINESS
Possible approval of Old Armory parking agreement
This item was tabled(see above)
Page 7 of 9
City Council Meeting July 3, 2018
Request by Washington County to waive parking reservation fee for Third Street reconstruction
project
Community Development Director Turnblad reported that as Washington County reconstructs
Third Street from Walnut to Chestnut Street, there will be no parking on Third. In addition,
Municipal Lot 18 will not be accessible. Lot 19 will remain accessible from Pine Street. Due to
the limited amount of parking on side streets, particularly during the day, the County makes the
following requests: 1)that the City allow 10-12 parking spaces be made available for residents in
Municipal Lot 20. The spaces would be marked with signs indicating "Reserved for Third Street
Resident Parking."The signs would be provided and installed by the County. In addition, 8 spaces
will be reserved for resident parking in the Historic Courthouse Parking Lot. 2) That the City
allow overnight parking for the reserved spaces in Lot 20. 3) That the City waive the fee of
$1.50/space/day. The total waived fee is anticipated to be approximately $1,008.00. The Parking
Commission recommends approval of the requests to reserve spaces, but not to waive the
reservation fee.
Motion by Councilmember Polehna, seconded by Councilmember Junker, to allow 10-12 parking
spaces to be made available for residents in Municipal Lot 20, to allow overnight parking for the
reserved spaces in Lot 20, and to waive the fee of $1.50/space/day during the Third Street
reconstruction project.
Ayes: Councilmembers Menikheim, Junker, Polehna and Mayor Kozlowski
Nays: None
Possible approval of resolution authorizing transfer and possession by"Quick Take"
City Attorney Magnuson provided information on the process of authorizing eminent domain to
acquire the parking area associated with the Shorty Cleaner's building and a five foot space
between the edge of what is taken,and the building.The proposed quick take resolution authorizes
the deposit of the award and possession of the property within 90 days. He stated this is commonly
done. It provides the City with possession at the earliest possible time. The property owners will
be given notice and a meeting will be scheduled with the appraiser. During the process, an
agreement could still be reached with the owners to avoid eminent domain,however negotiations
have not been fruitful up to now due to the wide discrepancy between the City offers and what
the owners are asking for the property.
Motion by Councilmember Polehna, seconded by Councilmember Junker,to adopt Resolution 2018-
149,resolution authorizing transfer and possession by"Quick Take."
Ayes: Councilmembers Menikheim, Junker, Polehna and Mayor Kozlowski
Nays: None
COMMUNICATIONS/REQUESTS
There were no communications/requests.
COUNCIL REQUEST ITEMS
Councilmember Polehna reminded residents of the Fourth of July fireworks. Almost$30,000 was
received in donations this year for the fireworks.
Page 8 of 9
City Council Meeting July 3, 2018
ADJOURNMENT
Motion by Councilmember Junker, seconded by Councilmember Polehna, to adjourn at 7:53. All in
favor.
Ted Kozlowski, Mayor
ATTEST:
J. T as McCarty, Acting ity erk
Resolution 2018-137, Directing the Payment of Bills
Resolution 2018-138,resolution for State Grant Assistance for St. Croix Riverbank
Restoration and Walkway
Resolution 2018-139, approving Access Agreement with Kraemer North America, LLC
Resolution 2018-140, approval of appointment to Traffic Safety Committee
Resolution 2018-141,resolution accepting cash donations
Resolution 2018-142, approving City of Stillwater employee basic life insurance policy
effective September 1, 2018
Resolution 2018-143, approving Integrity Benefit LLC's proposal for employee voluntary
ancillary insurance policies effective September 1, 2018
Resolution 2018-144, accepting the proposal of Levander, Gillen&Miller P.A. for
provision of civil legal services for the City of Stillwater effective August 1, 2018
Resolution 2018-145, accepting the proposal of Kelly& Lemmons P.A. for provision of
criminal prosecutorial legal services for the City of Stillwater effective August 1,
2018
Resolution 2018-146A, a resolution vacating the drainage and utility easements in Lot 4,
Block 2,Neal Meadows Case No. 2018-29
Resolution 2018-146B, a resolution approving the preliminary plat for Neal Meadows 5th
Addition Case No. 2018-29
Resolution 2018-146C, a resolution approving the final plat for Neal Meadows 5th Addition
Case No. 2018-29
Resolution 147,resolution amending Resolution 2018-22, 2018 Fee Schedule
Resolution 148, accepting bid for Third Street Improvement Project(Project 2018-09)
Resolution 149, resolution authorizing transfer and possession by"Quick Take"
Ordinance 1106, an ordinance amending Chapter 30 of the Stillwater City Code entitled
Garbage and Rubbish
Page 9 of 9