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HomeMy WebLinkAbout2018-08-21 CC MIN jvater 216 4th Street N, Stillwater, MN 55082 651-430-8800 The Birthplace of Minnesota ) WWW.ci.stillwater.mn.us CITY COUNCIL MEETING MINUTES August 21,2018 SPECIAL MEETING 3:30 P.M. Mayor Kozlowski called the meeting to order at 3:37 p.m. Present: Mayor Kozlowski, Councilmembers Menikheim, Junker, Weidner and Polehna Absent: None Staff present: City Administrator McCarty Deputy Fire Chief Ballis Fire Chief Glaser Police Chief Gannaway Public Works Director Sanders Community Development Director Turnblad City Clerk Ward Human Resources Manager Robole MIS Manager Holman Finance Director Harrison Assistant Finance Director Egger Library Director Troendle Library Board Member Richie OTHER BUSINESS Budget Workshop City Administrator McCarty presented the 2019 Budget Recommendations. He reported that the total proposed 2019 budget (all funds) is approximately $35,000,000. Staff, salary, and benefits account for roughly three-fourths of the budget. No change in staffing levels is proposed in 2019, with the exception of filling a full time HR Specialist position mid-year. A 15% increase in the cost of health insurance for employees is anticipated.He added that the total current FTE is 92.75. Finance Director Harrison stated that to fund the proposed budget, a general revenue tax levy of just over$10 million is required. The City also has existing debt to be paid from the tax levy, and an additional amount for new debt service for capital purchases in 2019. The total Citywide levy needed to fund all these things is $13.7 million. A 7.583% increase over last year's property tax levy is proposed. She reviewed the impacts of the City portion of property taxes on taxpayers with homes of varying value. City Administrator McCarty reviewed the General Fund operating revenues and expenditures by department. Councilmember Menikheim stated that the Library is significantly underfunded and relies too heavily on its foundations and Friends organizations for operating monies. The organizations are meant to make the Library better,not to operate it.He would like to increase the Library allocation City Council Meeting August 21, 2018 by $15,000 in 2019 and continue in future years, to help bridge a gap of about $100,000 between what the City is providing and what the Library needs to pay all the bills required to operate. Mr. McCarty explained some of the Library's dedicated funds and use restrictions. MIS Specialist Holman informed the Council that the City received notice that next year, Washington County will not support the machines used at the Library so the City will have to take them over. It will be quite an expense to replace County-maintained equipment. Another issue involves book sorters which are not equipped to move into Windows 10 and may incur another big expense. Mr. McCarty stated he will contact the County Administrator for more discussion about the machines. He will bring summaries of the various fund balances for the foundations supporting the Library to the next budget workshop. He went on to explain the lodging tax, proposed capital outlay items, and other proposed projects. Between now and the next meeting, staff will review all the numbers and bring additional information to the September 4 workshop. Councilmember Menikheim asked if the Library should bring more information to the next workshop. Councilmember Weidner questioned the assertion that the foundations should not be relied upon for operating funds. It depends on whether the absence of those funds would still leave the Library at an acceptable operating level. Councilmember Polehna remarked the Library may be underfunded but he also agrees with Councilmember Weidner. He knows of a lot of parks agencies that rely on foundations to fund operating costs. He supports the Library but the Council is accountable to taxpayers to watch its spending. Councilmember Menikheim stated that State statute and the City's charter state clearly that the Library Board is responsible for the financial operation of the library. He believes the Library needs more money to function at current levels. Councilmember Weidner reiterated that if the grants and gifts went away, the Library would still operate, albeit at a reduced level. Mayor Kozlowski reminded the Council of the next budget workshop September 4. Mayor Kozlowski recessed the meeting at 6:00 p.m. REGULAR MEETING 7:00 P.M. Mayor Kozlowski called the meeting to order at 7:04 p.m. Present: Councilmembers Menikheim, Dunker, Weidner, Polehna and Mayor Kozlowski Absent: None Staff present: City Administrator McCarty City Attorney Land Police Chief Gannaway Fire Chief Glaser Public Works Director Sanders Community Development Director Turnblad City Clerk Ward Page 2 of 8 City Council Meeting August 21, 2018 PLEDGE OF ALLEGIANCE Mayor Kozlowski led the Council and audience in the Pledge of Allegiance. APPROVAL OF MINUTES Possible approval of minutes of the July 31, 2018 regular and recessed meeting Motion by Councilmember Junker, seconded by Councilmember Polehna, to approve the minutes of the July 31, 2018 regular and recessed meeting. All in favor. PETITIONS, INDIVIDUALS, DELEGATIONS & COMMENDATIONS Human Rights Award Motion by Councilmember Polehna, seconded by Councilmember Junker,to adopt Resolution 2018- 174, Stillwater Human Rights Award - Kathy Junker. Ayes: Councilmembers Menikheim, Junker, Weidner, Polehna and Mayor Kozlowski Nays: None Mayor Kozlowski read the proclamation. Councilmember Polehna recognized Ms. Junker for her contributions. Ms. Junker stated her life has prepared her for advocating for others' rights. Swearing in of Police Officers—Officer Michael Mallet and Officer Zachary Lund Police Chief Gannaway introduced the officers. Mayor Kozlowski swore them in. NEW BUSINESS Possible approval of resolution accepting proposal on competitive negotiated sale of $5,935,000 General Obligation Capital Outlay Bonds, Series 2018A Dave McGillivray, Springsted & Associates Inc., explained the purpose of the bonds and stated the City's Moody's rating is AA2. He recommended awarding the sale to Northland. Motion by Councilmember Polehna, seconded by Councilmember Junker,to adopt Resolution 2018- 177, resolution accepting proposal on the competitive negotiated sale of $5,935,000 General Obligation Capital Outlay Bonds, Series 2018A,providing for their issuance and levying a tax for the payment thereof Ayes: Councilmembers Menikheim, Junker, Weidner, Polehna and Mayor Kozlowski Nays: None OPEN FORUM Bill Howell, representing the Lakes at Stillwater, thanked City staff for the emergency response last week when a construction worker fell and injured himself The project is still moving along as scheduled. STAFF REPORTS Fire Chief Glaser informed the Council of an incident on Minar Avenue in which personnel revived an individual and the individual met with personnel to personally thank them. The Department provided mutual aid to Hudson for a boat fire. Last week there were two tragic drownings,on Square Lake and Mahtomedi. Yesterday there was a significant house fire on North Greeley Street which is still under investigation, but fortunately had no injuries. Page 3 of 8 City Council Meeting August 21, 2018 Community Development Director Turnblad reported that two building inspectors passed their building official certification exams this month. Mayor Kozlowski asked if there have been issues at the Aiple Property. Mr. Turnblad replied no, the park is not officially open to the public yet, for insurance purposes and other reasons. A master plan will be developed to improve the space and open it to the public. Public Works Director Sanders reported that the RFP for the riverbank restoration and riverwalk project is out and proposals are due August 31. Third Street is still on schedule for opening September 7. City Administrator McCarty reminded the Council of the August 23 Boards and Commissions picnic at Pioneer Park. He stated he was advised by the Minnesota Department of Natural Resources that the St. Croix River Commission will hold a public hearing August 30 to consider the City's request for a Slow/No Wake zone on St. Croix River. CONSENT AGENDA Resolution 2018-175, directing payment of bills Possible approval of sanitary sewer adjustment Possible approval to purchase upgrade server/software and Bravo DVD burner for squad videos Resolution 2018-176, approving revised Purchasing Policy Motion by Councilmember Menikheim, seconded by Councilmember Weidner,to adopt the Consent Agenda. Ayes: Councilmembers Menikheim, Junker, Weidner, Polehna and Mayor Kozlowski Nays: None PUBLIC HEARINGS There were no public hearings. UNFINISHED BUSINESS Consider request to delete the condition from the Mills on Main Special Use Permit that requires the commercial parking spaces to be made available to the public during non-business hours (from July 31 meeting) Community Development Director Turnblad stated that on May 1, 2018 the Council heard a request by the owner of the commercial garage in Mills on Main to delete Condition 6(J) of their Special Use Permit which 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. 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 guests' vehicles in the Mills on Main commercial garage rather than in the public parking system. However, Hotel Lora was not interested. During negotiations, a sum of$30,000 was suggested as a payment to mitigate loss of access to the spaces by the public. The decision deadline for the request has been extended by the applicant to September 12, 2018. Councilmember Junker added that the $30,000 was proposed to be paid in two installments. The two businesses that are there now are actually open quite often, so trying to determine an actual Page 4 of 8 City Council Meeting August 21, 2018 timeframe when the public could access the garage was difficult. It was decided to consider $500/month for five years. The property owners indicated they would rather buy it out and pay one lump sum. Currently the businesses have about 60 employees.All their clients and employees are parking in the Mills garage, thereby reducing pressure on the public parking system. The garage was not originally built for public access and there are 98 residents above the commercial area who use the adjoining door for residential parking. Mayor Kozlowski commented that the City bears some culpability because the wording on the development agreement didn't make much sense. It was difficult to decipher what "after hours" meant. Councilmember Polehna recalled the property owner's comment it would cost him $270,000 to turn this area into public parking. He feels the $30,000 is a good deal for the property owner, perhaps not for the City. Councilmember Weidner remarked that the value of 70-some parking spots on weekends and evenings is worth more over the course of 30 years than $30,000 so he doesn't think that is enough. He would rather have the parking available nights and weekends. Motion by Councilmember Junker, seconded by Councilmember Menikheim, approved the removal of Condition 6(J) with the monetary consideration of$30,000 to be paid in two sums. A resolution for Council approval will be at the next meeting. Ayes: Councilmembers Menikheim, Junker and Mayor Kozlowski Nays: Councilmembers Weidner and Polehna Possible approval of plans and specifications and ordering advertisement for bids for the 2018 Sidewalk Rehabilitation Project, Project 2018-03 Public Works Director Sanders stated that plans and specifications for the 2018 Sidewalk Rehabilitation Project are completed. The bid date will be September 4, 2018. Staff recommends that the Council approve the plans and specifications and authorize advertisement for bids. Motion by Councilmember Polehna, seconded by Councilmember Weidner, to adopt Resolution 2018-179, Approving Plans & Specifications and Ordering Advertisement for Bids for the 2018 Sidewalk Rehabilitation Project(Project 2018-03). Ayes: Councilmembers Menikheim, Junker, Weidner, Polehna and Mayor Kozlowski Nays: None NEW BUSINESS CONTINUED Discussion regarding Minar Neighborhood development strategy options Community Development Director Turnblad explained that the City received inquiries from several Minar Avenue Neighborhood residents to extend City sewer and water for the purpose of developing their lots for additional single family home sites. Though the Comprehensive Plan envisions splitting the lots in the Minar Neighborhood into smaller parcels and servicing them with sanitary sewer and municipal water, no strategy has been developed for extending those utilities. Staff was directed to initiate a feasibility study process to determine if extending sewer and water is the preferred development strategy. A neighborhood meeting was held. The Engineering Department estimated the cost of extending the utilities throughout the neighborhood to be about $3 million, or about $27,000 per acre. Currently there is no identified funding Page 5 of 8 City Council Meeting August 21, 2018 mechanism other than assessment. As discussed at the neighborhood meeting, three possible development strategies are: 1. Leave as is, with 2.5-acre minimum lot size and private wells; 2. Allow one-acre lots with on-site septic systems and private wells; 3. Extend municipal sewer and water into the neighborhood and allow lot splits at a suburban density. Currently there are 44 parcels which are not all equally subdividable. Councilmember Weidner asked if there is a downside to the City in leaving it as is. Mr. Turnblad responded no. Before the Comprehensive Planning process began, staff was concerned about meeting the Metropolitan Council's density goal of five units per acre. If this area were categorized as developable property, the City would have to increase the density. However, the Met Council agreed this is already developed property so they will not include it in their calculations. Mayor Kozlowski expressed concern about the possibility of 60 new homes on private septic systems. Mr. Turnblad replied that the City allows private wells as long as the parcel is at least one acre. So what is already in place is the scenario that the majority of residents prefer. Councilmember Junker pointed out that 73% of residents want to leave it as is. He would prefer to leave it as is. He would not like to see a chunk of land that big utilize septic systems and private wells. Mr.Turnblad stated if the Council consensus is to leave it as is,then he would create a new zoning district, for instance rural residential, requiring a minimum lot size of 2.5 acres. Council consensus was to leave the Minar area as is. Possible approval of Heritage Ridge final plat and development agreement Community Development Director Turnblad reviewed the case. Sterling Black, Fairway Development,received Preliminary Plat approval on September 5,2017 for what was then known as Hazel Place. The Council approved the Preliminary Plat with the condition that only seven lots be developed,rather than the eight shown on the Preliminary Plat. In June the Council considered an eight-lot Final Plat for the project, but did not find it consistent with the Preliminary Plat approval for seven lots. Therefore, the Council denied the requested plat approval. Subsequently, the developer submitted a revised Final Plat with seven lots that eliminates Lot 8, combining it with Lot 7. The result is that Lot 7 now has two potential building pads for a house, 7a and 7b. The problem with 7a is that it has a shared driveway with Lot 6. The property is currently zoned RB allowing for duplexes. It will be rezoned to RA as a condition of approval to comply with the Comprehensive Plan. Staff recommends approval of the Final Plat and development agreement with 16 conditions. Councilmember Junker was concerned about the shared driveway. Motion by Councilmember Polehna, seconded by Councilmember Menikheim, to adopt Resolution 2018-180, a resolution approving the final plat for Heritage Ridge and authorizing entering into a Development Agreement with Fairway Development LLC, Case No. 2018-45. Ayes: Councilmembers Menikheim, Junker, Weidner, Polehna and Mayor Kozlowski Nays: Councilmembers Junker and Weidner Page 6 of 8 City Council Meeting August 21, 2018 Possible approval of possible purchase of tax forfeited property City Administrator McCarty explained that the City was contacted by Washington County regarding the availability of two garage units and a storage unit within Terra Springs housing development that were tax forfeited. The current owners of the condo unit to which the garage and storage units were attached did not pay the property taxes due on these parcels. Washington County proposed that the City acquire the parcels for a set price and in turn convey the parcels to the current condo owner for that same set price plus any administrative costs incurred by the City. City Attorney Land has drafted a proposed purchase agreement that would be a condition of acquisition of the property from the County to protect the City. Councilmember Junker remarked that the parcels have a tax value of about $1,500 and pay minimal annualized taxes. Many residents in Terra Springs want to buy additional garage space. Without the parcels being attached to the condo, a future buyer of the condo unit would have no underground parking. He questioned why the County isn't putting the parcels up for sale without City involvement. Motion by Councilmember Weidner, seconded by Councilmember Polehna, to adopt Resolution 2018-181, requesting purchase of tax forfeited parcels from Washington County for the purpose of conveying stated parcels to previous owners of the tax forfeited parcels. Ayes: Councilmembers Menikheim, Junker, Weidner, Polehna and Mayor Kozlowski Nays: None Possible approval of request for a trash enclosure on Water Street Community Development Director Turnblad informed the Council that John Koch of J-Group, owner of Portside, is requesting the City to allow him to construct a trash enclosure on South Water Street for the combined use of Alfresco, Portside and Midtown Antique Mall. The enclosure would be financed and constructed by Mr. Koch, but owned by the City. It would replace two on-street parking spaces. Though the Downtown Parking Commission would prefer not to lose public parking spaces,they understand the public health and aesthetic issues associated with the lack of a trash enclosure and unanimously recommended that the Council approve the request with two conditions. Staff recommends adding three conditions. Councilmember Weidner encouraged every business involved to apply for grant money to construct the enclosure. Councilmember Junker pointed out that this eliminates the two trash barrels that are north of Midtown Antiques, which take up two parking spots. Motion by Councilmember Junker, seconded by Councilmember Weidner, to direct staff to draft a use agreement for all three of the groups to sign outlining conditions of use. All in favor. COMMUNICATIONS/REQUESTS Councilmember Polehna reported that Cub Foods provided food for the summer picnic for MPs for Beyond the Yellow Ribbon. There will be another pheasant hunt in December. Police Chief Gannaway informed the Council there were a number of break-ins last weekend. He encouraged neighbors to call 911 to report any suspicious activity. Page 7 of 8 City Council Meeting August 21, 2018 Councilmember Polehna reported that there will be informational meetings held by Stillwater Police and Washington County Sheriff relating to the breakins and how to organize neighborhood at 6:30 p.m., August 29 and August 30 at City Hall. COUNCIL REQUEST ITEMS There were no Council request items. ADJOURNMENT Motion by Councilmember Weidner, seconded by Councilmember Junker, to adjourn the meeting. All in favor. The meeting was adjourned at 8:14 p.m. Ted Kozlowski, ATTEST: 0"&e;o_e Diane F. Ward, City Clerk Resolution 2018-174, Stillwater Human Rights Award - Kathy Junker Resolution 2018-175,directing payment of bills Resolution 2018-176, approving revised Purchasing Policy Resolution 2018-177, resolution accepting proposal on the competitive negotiated sale of $5,935,000 General Obligation Capital Outlay Bonds, Series 2018A, providing for their issuance and levying a tax for the payment thereof Resolution 2018-178,not used Resolution 2018-179,Approving Plans & Specifications and Ordering Advertisement for Bids for the 2018 Sidewalk Rehabilitation Project (Project 2018-03) Resolution 2018-180, a resolution approving the final plat for Heritage Ridge and authorizing entering into a Development Agreement with Fairway Development LLC, Case No. 2018-45 Resolution 2018-181,requesting purchase of tax forfeited parcels from Washington County for the purpose of conveying stated parcels to previous owners of the tax forfeited parcels Page 8 of 8