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HomeMy WebLinkAbout2018-09-18 CC MIN r ! vV� tr 216 4th Street N, Stillwater, MN 55082 • 1 �-- 651-430-8800 The Birthplace of Minnesota J www.ci.stillwater.mn.us CITY COUNCIL MEETING MINUTES September 18, 2018 SPECIAL MEETING 4:30 P.M. Mayor Kozlowski called the meeting to order at 4:43 p.m. Present: Mayor Kozlowski, Councilmembers Menikheim, Junker and Weidner Absent: Councilmember Polehna Staff present: City Administrator McCarty Finance Director Harrison Assistant Finance Director Egger Fire Chief Glaser Deputy Fire Chief Ballis Police Chief Gannaway Community Development Director Turnblad Public Works Director Sanders MIS Manager Holman Library Director Troendle City Clerk Ward OTHER BUSINESS Budget Workshop City Administrator McCarty updated the Council on the proposed budget. Finance Director Harrison reviewed the tax impacts. She stated the proposed tax rate has increased from 54.375 to 54.591%. Mr. McCarty reviewed risk areas (developing areas of the budget). He stated the proposed budget as presented includes the City match required if the Council accepts the federal SAFER grant. The budget was adjusted, reducing the allocations for the lobbyist and the public works organizational review, and postponing the ADA study of the whole city. In addition, Fire Department staff are modifying some line items to make up the difference. Mr. McCarty recommended that the Council accept the grant with the following caveats: when recruiting for the three additional positions, it be noted that they are three year positions that may not be extended; that within the positions there be some deliverables related to measurable outcomes; that within the three-year timeframe an effort be made to look at combining service delivery with other departments. Mayor Kozlowski asked if the City is at risk of losing funding for the ADA study if postponed; and Mr. McCarty replied there is no funding yet; staff intends to try to find grants to fund the study. Fire Chief Glaser handed out materials regarding the Fire Department services and staffing levels. Councilmember Weidner asked what will be the City's annual cost for the three firefighters after the grant ends. City Council Meeting September 18, 2018 Councilmember Junker stated it appears to average out to about$76,000 a year per firefighter. Assistant Finance Director Egger responded that it would cost $328,000 to keep them on past three years. Finance Director Harrison added this is based on the current contract with 2.5% COLA. Chief Glaser pointed out that within 10 years there could be 80% turnover in the full time staff based on age and retirement. Addressing questions that came up in the September 4 meeting, he stated 85% of all call volume occurs within the City of Stillwater. In 2018 to date there have been 222 simultaneous calls - multiple calls occurring at the same time. Of those, 114 were EMS related, 108 were fire/rescue or other. The 2018 call ratio to date is 63%EMS and 37%fire/rescue. Regarding sharing services, he has spoken with the chiefs of Lake Elmo, Lower St. Croix Valley, and Mahtomedi. All are short and unable to keep positions filled. Stillwater's authorized strength has been 41 but the Department has not seen that strength since 2007. Currently staff is at 33. The three person on-duty crew may be down to two if someone is on vacation or sick. He added that it is very difficult to get personnel to stay long enough to get them trained to the level of an apparatus operator. The Department has tried dual toning for calls,priority dispatching,increased volunteer pay, decreased the response requirements,provided additional opportunities for staff to earn service credit,modified the training program,and amended the City personnel policy in 2013 so other full time City staff could be on the department. Deputy Fire Chief Ballis added that recruiting and retaining fire personnel is a nationwide problem. The training requirements to be a firefighter, whether volunteer or career, are the same and the requirements continue to increase. Mayor Kozlowski asked if the same amount of training is required to do EMS services. He suggested not requiring fire training for personnel to provide EMS only; and Deputy Chief Ballis replied that EMS training is the smallest component of the training, three hours a quarter versus roughly six hours a month for firefighter training. Chief Glaser noted that call volumes are increasing on the EMS side and Lakeview Hospital is busy. There have been incidents where the personnel of the Fire Department has waited 30 minutes for an ambulance. Mayor Kozlowski questioned why firefighters need to respond to cardiac calls. If the EMS part of the equation were removed, it could free up dollars to allow the Department to hire more firefighters; and Deputy Chief Ballis responded that with three full time personnel on the shift and a duty chief who may be 5-10 minutes out, that means the three responders must work on their own until the fourth person, required for cardiac calls, arrives. Councilmember Weidner stated the caveats for accepting the grant do not change anything. He feels so far he has not been shown any proof that the Department cannot function without that fourth firefighter. Administrator McCarty pointed out there are other options available to help offset the cost, for instance looking at fee-for-service models. Mayor Kozlowski stated over the last two weeks he has been doing a lot of reading about how other departments handle staffing. For instance, one department charged $200 per run. If the Department had 1,200 medical calls at$200 per run that would be $240,000 revenue. Page 2 of 15 City Council Meeting September 18, 2018 Chief Glaser stated it is legal in Minnesota to enact an ordinance to charge per call. However the Department would have to bill everybody, not just people who have insurance. He stated there has been past discussion about fees and there was not necessarily the will to move forward. Councilmember Weidner expressed concern that people would not call 911 if a fee-for-service were implemented. He also questioned whether the Council would have the will to eliminate the three positions after three years. He feels the grant comes at too much expense to the City. Councilmember Junker acknowledged it is a fabulous grant, but it is also $300,000 of the City's own money. He could vote to eliminate the positions in three years if he is on the Council. Mayor Kozlowski stated the additional positions are not sustainable under the current model. He would like to see the Department put in some creative effort in looking at new models. He does not like the idea of charging for service because he does not want anyone hesitant to call 911. Administrator McCarty reminded the Council that the contracts with other communities are up toward the end of 2019, so staff will be looking at those. Motion by Councilmember Weidner,seconded by Councilmember Menikheim,to decline the SAFER Grant. Ayes: Councilmembers Menikheim, Junker and Weidner Nays: Mayor Kozlowski Mr. McCarty provided background information on the Washington County plan to restructure the IT services it provides to the library and the fees it would charge for those services. Library Director Troendle compared Stillwater versus Washington County IT proposals. If all IT services are taken over by the County, the library would have to reconstitute all the services it now shares with the City, including financial software, security cameras, and the HVAC control system. He stated the more cost effective model is for the City to take over all IT services for the library. The amount of library budget increase requested for this for 2019 is $10,872. It is unclear how long the implementation phase will take. Mr. McCarty added that City staff believes that the capital costs to acquire equipment can be handled within the capital budget at no additional cost to the levy in 2019. The $10,872 gap that exists is for operating expenses. If the County is given the responsibility for all IT service at the library, the gap gets a lot larger. MIS Manager Holman added that in subsequent years staff would ask for an additional 10%of an IT position to add to the 20% currently billed to the library. For now they are just reallocating the IT portion, not adding time. Currently, Washington County maintains the public computers and the City maintains the staff computers. If Washington County takes over everything, that would break the connection between the library and the City, and on top of the cost Washington County charges them, the library would have to find out how to pay for other things that the City is not charging them for now. Motion by Councilmember Menikheim, seconded by Councilmember Junker, to approve $10,872 additional in the library budget and to authorize City IT staff to manage services for the library. Ayes: Councilmembers Menikheim, Dunker, Weidner, and Mayor Kozlowski Nays: None Mayor Kozlowski recessed the meeting at 6:45 p.m. Page 3 of 15 City Council Meeting September 18, 2018 REGULAR MEETING 7:00 P.M. Mayor Kozlowski called the meeting to order at 7:17 p.m. Present: Mayor Kozlowski, Councilmembers Menikheim, Junker and Weidner Absent: Councilmember Polehna Staff present: City Administrator McCarty City Attorney Land Police Chief Gannaway Fire Chief Glaser Public Works Director Sanders Finance Director Harrison City Planner Wittman 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 September 4, 2018 regular and recessed meeting minutes Motion by Councilmember Menikheim, seconded by Councilmember Dunker,to approve the minutes of the September 4, 2018 regular and recessed meeting. All in favor. PETITIONS, INDIVIDUALS, DELEGATIONS & COMMENDATIONS Suzi Quaderer, 304 North Third Street, asked if the City owns a sound decibel meter as specified in the noise ordinance. Police Chief Gannaway stated yes. OPEN FORUM There were no public comments. STAFF REPORTS Fire Chief Glaser stated Fire Prevention Week is October 7-13. The Council is invited to a dinner October 2. Public Works Director Sanders stated the traffic lanes are open on Third Street. County Road 24/Osgood will open October 17. Due to a watermain break on Greeley Street, the road will be closed from Churchill to Curve Crest on Thursday or Friday. Two proposals were received for the stream bank restoration and riverwalk project and a recommendation should be presented in October. CONSENT AGENDA Resolution 2018-199, directing the payment of bills Resolution 2018-200, approval of 2%payment increase for Railroad Lease charged to St. Croix Boat &Packet Page 4 of 15 City Council Meeting September 18, 2018 Resolution 2018-201, a resolution amending Special Use Permit Resolution 2003-241 for Stillwater Mills on Main 350 Main Street N, CPC Case No. 2018-11 Resolution 2018-202, a resolution approving the trash enclosure and maintenance agreements for trash enclosure located adjacent to 301 S Main Street Ordinance 1110, 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 (Lot 7, Block 2,Neal Meadows) (Livermore Plat) Ordinance 1111, 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(Lot 5, Block 2, Neal Meadows) (Ross Plat) Ordinance 1112, an ordinance amending the Stillwater City Code Sec. 31-521, Slope Regulations Possible approval of temporary liquor license—Zephyr Theatre—River Market's Annual Meeting - October 6, 2018 Possible approval of temporary liquor license—Zephyr Theatre—The Zephyr Theatre Masquerade Ball—October 13, 2018 Possible approval of temporary liquor license—Zephyr Theatre—Haunted History Trolley Tours— October 18-20, 2018 Possible approval of temporary liquor license—Zephyr Theatre—Haunted History Trolley Tours— October 25-27, 2018 Possible approval of temporary liquor license—Valley Chamber Chorale Christmas Concerts— Washington County Historic Courthouse—December 7, 8, 9, 2018 Councilmember Weidner requested that the possible approvals of temporary liquor licenses for the Zephyr Theatre be pulled from the Consent Agenda for discussion. He noted there are four events within a short period of time and some are for three days at a time. He questioned at what point the Theatre will apply for a permanent liquor license. City Clerk Ward responded that temporary liquor licenses are authorized for nonprofits and they may have up to 12 per location. She has talked to Ms. Hall of the Zephyr Theatre about the need to apply for a permanent liquor license. Motion by Councilmember Junker, seconded by Councilmember Menikheim, to adopt the Consent Agenda. Ayes: Councilmembers Menikheim, Junker, and Mayor Kozlowski Nays: Councilmember Weidner PUBLIC HEARINGS Case No. 2018-50. An appeal request by Mark Troendle, applicant representing Stillwater Public Library, for the reconsideration of a condition in their Special Use Permit that restricts the number of outside events to 30. The property is located at 223 4th Street North in the PA district. City Planner Wittman reviewed the request. The Council recently approved an ordinance amendment to allow outside events by Special Use Permit in the PA, Public Administration/Institutional Zoning District. Subsequently the Library applied for a Special Use Permit and was granted it by the Planning Commission. One of the conditions of approval limited Page 5 of 15 City Council Meeting September 18, 2018 the number of outside events to 30 in a year. The Library Board of Trustees believes the condition is unnecessary and has submitted an appeal request to the City Council to strike it. There is opposition from the neighbors. Included in the Council packet are comments from Suzi Quaderer suggesting limiting it to 25 events with amplified sound after 8 pm. and also suggesting a limit of 150 guests on the site. Mayor Kozlowski opened the public hearing. Mike Keliher, President of the Library Board of Trustees, introduced Maureen Bell, Vice President of the Board, Library Director Mark Troendle, and Library Event Coordinator Sandy Ellis. Mr. Keliher stated that the Library Board wishes to appeal Condition#9 because it presents an undue burden. He stated that outdoor events provide an opportunity to raise crucial revenue for library services. The library has put a lot of effort into rebuilding relationships with neighbors and overhauled event procedures. They have 44 rentals on the books in 2018. 41 of them had or will have some sort of amplified sound, which may be as simple as reading vows into a microphone. 27 of the events are wedding receptions, 11 are wedding ceremonies only (no reception), and six are other events. This does not include the library's own programming on the terrace. He emphasized that the library benefits from outdoor events and the community benefits also. Ms. Ellis added that there are 19 events booked for 2019 and six in consideration. Kelly McCabe, 304 North Third Street, stated she supports the conditions Ms. Quaderer suggested. Suzi Quaderer, 304 North Third Street, offered to provide supporting documentation for budget information and audio recordings for quotes she was about to cite. She stated that in 2005 the City Council approved a new use for the library without considering how it would affect the neighborhood. She asked that the Council: 1) impose a limit of 25 outdoor events with amplified sound or music after 8 p.m. for 2019; 2)review the terms of the SUP in one year, as the Planning Commission decided; 3) set a maximum attendance of 150 people for events, as the library only has about 50 parking spaces. She feels the parking concerns surrounding a previous event application by the Swedish Church also apply for this location; 4) incorporate into the SUP a requirement that the Event Coordinator,with support of Police, continue to respond to reasonable requests. Ms. Quaderer went on to review library budget figures. She stated there has been a 54% increase in their budget in 15 years, not 16% as stated by the library. She feels it is time to have the entire community support the expansion they wanted through property taxes and donations, and not ask the neighborhood to keep paying the price. Jane Paskvan, 314 Fourth Street North, pointed out that the people who moved to this neighborhood to be near a library did not know they were moving next to an event center. Since the Board has gotten involved things have gotten steadily better. Sandy Ellis, the Event Coordinator, is fabulous but what if Sandy leaves? Most event guests are coming in from out of town,having a lot of fun and making a lot of noise. She supports the restrictions proposed by Ms. Quaderer. Tom Huninghake, 209 North Third Street, stated he hears wedding receptions, birthday parties, graduation parties, amplified and non-amplified, every weekend two to three times. He does not know how this can go on in a residential neighborhood. It is very annoying and makes his house basically unlivable. Page 6 of 15 City Council Meeting September 18, 2018 Tim Paskvan, 314 North Fourth Street, acknowledged he is a big user and supporter of the library. He wants it to stay afloat and pay for its renovation but also wants to be able to enjoy his neighborhood in reasonable peace and quiet. The injury to the peace and quiet has been going on for 12 years. He urged the Council to adopt Ms. Quaderer's proposed limitations. Ed Otis, 12070 87th Street Circle North, commented that he does not like to see people driven from their homes. He feels the library is losing its mission as a library and becoming a convention center with parking issues and police calls. Mayor Kozlowski closed the public hearing. He asked City Planner Wittman to explain the rationale behind the 30 event limit. Ms. Wittman replied that the Planning Commission acknowledged the events were impacting the neighborhood and felt one way to reduce that was to limit the number of events. Mayor Kozlowski stated that, if limited to 30 events (as stated), he does not think that should include a PA system for officiants conducting a wedding ceremony. Ms. Wittman stated the Council may want to expand on that point for greater clarification. Councilmember Weidner reflected that if it does not pertain to an amplified officiant and if there are 11 ceremonies only that likely would not go past 8 p.m., and 27 receptions, that sounds like it almost falls in line with the proposed limitations. Councilmember Junker pointed out the library expansion was designed to host events. He acknowledged that communication has improved and he understands the Planning Commission setting the benchmark at 30, but feels it is a bit restrictive. He added that event revenue supplements the income, but does not entirely fund the library. The taxpayers are still paying for a majority of the library's budget. He would agree to 30 as a minimum but is open to a higher number of events. Mayor Kozlowski suggested setting the limit at 30 events "after 8 p.m." Councilmember Menikheim expressed concern about interfering with the Library Board and how they operate the library. There have been a lot of changes over the years in terms of relationships and collaboration and working together, but at the same time the library is responsible for paying off the obligations of the $5 million bond that was passed back in 2005. Finding the funds to do that requires the library to use every effort it can to provide a revenue stream. Events are a significant portion of revenues. He would prefer passing the issue on to the Library Board rather than the Council setting a limit. The library is working at becoming a destination. If the atmosphere is intolerable, he stated neighbors have a choice to move somewhere else. The library has been there for over 100 years; the residential area built up around it. He would like to ask the Library Board to continue to collaborate with the neighborhood. Councilmember Weidner agreed that the Council should not concern itself with daily operations of the library but the issue steps into the Council purview when it conflicts with the neighbors. He does not want to stifle all activity but it should be limited after 8 p.m. City Attorney Land stated that once a conditional use permit is granted it runs with the land. There can be a condition that staff will review it on a regular basis, but technically it cannot come back before the Council unless a term or condition is being violated and then it would have to be given proper notice. Page 7 of 15 City Council Meeting September 18, 2018 Councilmember Weidner commented that 30 events a year is a lot to put on a neighborhood. He does not want to limit the number of people as suggested. He would be more comfortable with 25 events after 8 p.m. with amplified sound. Mayor Kozlowski suggested the Council could be restrictive in 2019, and maybe less restrictive for next year. Library Director Troendle stated he asked Community Development Director Turnblad for clarification about the meaning of amplification and he stated this first year, in order to err on the side of caution, it would mean anything with a microphone. Councilmember Weidner remarked he would like to make it clearer that an officiant with a mic who faces a crowd so they can hear wedding vows does not constitute amplification. Ms. Wittman acknowledged there is wordsmithing to be done. Motion by Councilmember Weidner, seconded by Councilmember Junker, to amend SUP Condition #9 to state that the library shall host no more than 25 outdoor events that occur after 8 p.m.that include music with amplified sound (i.e. DJ, musicians, performers). This does not include speakers or officiants who use a microphone. Ayes: Councilmembers Junker, Weidner and Mayor Kozlowski Nays: Councilmember Menikheim A public hearing to consider a moratorium on subdividing property in the Minar Neighborhood. Properties affected by the moratorium are located on Minar Avenue North, Minar Lane North, 77th Street North, and 77th Street Court North. City Planner Wittman explained that on August 21, the Council considered various development options for the Minar Avenue Neighborhood and decided to prohibit subdivision of lots for new home sites,which was the scenario favored by a majority of the homeowners in the neighborhood. She explained the four major tasks that will need to be completed: 1) place a moratorium on lot splits;2)develop an ordinance creating a new zoning district; 3)amend the Comprehensive Plan's future land use map; and 4) rezone the neighborhood. Ms. Wittman further stated that Jeff and Patti Pratt, 7960 Minar Avenue, have submitted a request to exempt their property from the moratorium so they can subdivide their property at urban density, and Stephen and Kathleen Nelson, 7770 Minar Lane North, applied for a lot split request for their property. She presented a possible schedule for the tasks. Staff requests Council to hold the first reading of the moratorium ordinance and decide whether to include the Pratt and Nelson property. Mayor Kozlowski opened the public hearing. Stephen Nelson, 7770 Minar Lane North, stated he filed for a lot split on Friday which was the deadline to get in before the moratorium discussion began. He has no intention to put a house on the property now but wants to preserve that ability in the near future. Jeff Pratt, 7960 Minar Avenue, stated he submitted an application for exemption from the moratorium if adopted. He appreciates the desire of 75% of the neighborhood's desire to leave the neighborhood as is, but he did not get the chance to vote on Boutwell Farm. Ed Otis, 12070 87th Street Circle North, stated he thought the City was going to do a feasibility study before considering this moratorium. He asked if the City has overlaid the whole area with all the setbacks and buffers and set a maximum count for each property as to the max number of lots that could be put in there. He also questioned whether sewer and water would be oversized. Page 8 of 15 City Council Meeting September 18, 2018 He asked if all property owners were notified that they could apply for an exemption. He asked how the tax structure for the whole area will be impacted if zoning is changed from AP. He reminded the Council that the City was not obligated to bring sewer and water into those areas when they were annexed. This was a protection so it would not be mandatory that township hook up. He feels the moratorium is the best way to figure this out because the neighborhood is worth preserving. City Planner Wittman answered that Community Development Director Turnblad reached out to neighborhood residents via email but she does not know if he mentioned exemptions. Terry Lobeck, 7789 Minar Avenue North, pointed out that being annexed was not the residents' choice.He thought there was a plan that stated it would cost$30,000/acre to bring in City services. The moratorium is probably a good idea but he does not want the Council to change the rules for anybody. If somebody gets an exemption then everyone would want to opt out to preserve the ability to subdivide in the future. Mayor Kozlowski closed the public hearing. Mayor Kozlowski remarked he kept hearing about"keeping the status quo"which he thought was the ability to do lot splits. He asked how that changed to excluding all development in this area; and Ms. Wittman replied that she is not exactly certain. The options included one of the City bearing full cost which was a burden. Another option was to extend services to properties as they develop. Generally, lot splits would lead to increased density. The question of whether the City would be able to permit new wells and new septic systems in these areas is part of the challenge as well. Having a moratorium in place would allow the City to explore what that zoning district needs to look like in the future. Councilmember Junker recalled that the Council used the term status quo but he does not remembering using the word moratorium. City Attorney Land explained that typically, moratoriums expire in one year unless an ordinance affecting the moratorium is enacted sooner. Ms. Wittman told the Council a second reading would be scheduled for October 2, but Mr. Turnblad will not be present at that meeting. Mayor Kozlowski stated he leans toward tabling it because some residents may not have been aware they can request an exemption. He does not remember discussing an all-out halt to development, but knows more time is needed to study the issue. Councilmember Weidner reiterated that if property owners apply for an exemption prior to adoption of the moratorium via second reading, their property will not be included in the moratorium. Motion by Councilmember Weidner, seconded by Councilmember Menikheim, approving the first reading of a moratorium prohibiting subdivision of lots in Springcreek and Boutwell Valley Estates. Ayes: Councilmembers Menikheim, Junker, Weidner and Mayor Kozlowski Nays: None Page 9 of 15 City Council Meeting September 18, 2018 UNFINISHED BUSINESS Discussion on Ice Castle Event City Administrator McCarty informed the Council that Ice Castles would like to locate in Lowell Park this season with a larger footprint than last year. Last year nearly 100,000 people attended the venue. Over the last couple years the park experienced damage requiring remediation due to the size and weight of the Ice Castle. Staff concerns focused on clean-up, weight of the structure causing damage to sidewalk areas and the underground sprinkler system. Ice Castles have always reimbursed the City for those costs. City staff has met with Ice Castles staff and recommended Bridgeview Park instead, due to concerns of last year. Ice Castles indicated there is potential for that site but they prefer Lowell Park. Staff recommends nine conditions of approval if the Council agrees to permit the structure to operate in Lowell Park as requested. Amanda Roseth, Ice Castles Events Director, introduced Ryan Davis, one of the owners and founders of Ice Castles. Mr. Davis told the Council that the damages to the park the first year were about $15,000, but depending on contractors, estimates for the work were $10-50,000. So to look at the $35,000 damages last year and say this is getting worse is not true. The variable was timing, not an increased scope of damage. Last year they used 16 million gallons of water; usually around 12 million gallons are used. They are initiating water management policies because they pay the bill for the water. The SEH report assumed they froze all the water and put 133 million pounds of ice in Lowell Park, generating a load of 3,600 pounds per square foot. However, one cubic foot of water or ice weighs 62 pounds. To generate a 3,600 pound load, the structure would have to be 59 1/2 feet tall, of solid ice. He stated they freeze only 5-10%of the water used because they have to leave the water running so the lines do not freeze. The tallest wall is about 15 feet, which has a load of under 600 pounds per square foot, or one-sixth of what the engineer based his math and his recommendations on. In reality the total load is 1.5-2.2 million pounds. The ice castle is about 70% ice. Mr. Davis went on to state that this event on the slowest day draws 200 people, on the busiest day, 5,000 people. On average it brings 1,500 people into town,bringing an estimated$2.5 million direct spending into Stillwater, conservatively. Regarding clean-up, he acknowledged they could have done a better job. In April it snowed and then suddenly it flooded so they had to get a boat to clean up the east side of the Ice Castle. He added that there are a couple of staff recommendations that they cannot support. They cannot narrow the structure by 30 feet, and they cannot keep Sam Bloomer totally open. Regarding Bridgeview Park,there's no lighting there,the water connection is too far away and there is not anywhere to turn around a shuttle, which would be needed to resolve parking concerns. They feel they could solve these problems over time but not in time for this season. As a compromise,they could use the same footprint for one more year in Lowell Park. Mayor Kozlowski stated the concern about the footprint was because of underground utilities. He asked Public Works Director Sanders about the surcharge mentioned in the engineer's report. He is concerned that nothing be done to jeopardize the levee wall. Mr. Sanders responded that the engineers stated the upper wall just north of the lift bridge has a shallow foundation, not the same type of foundation or footings that they did for the levee wall, so they are concerned about the load being close to that wall. They are also concerned about what the load would do to the foundation and structure of the gazebo. There also are storm sewers in Page 10 of 15 City Council Meeting September 18, 2018 Lowell Park to protect. The storm sewers can be televised to determine condition before and after if Ice Castles is willing to cover any damages,but he still thinks the structure should stay a certain distance away from them. Using 400-600 pounds per square foot, he can ask the SEH engineer what his thoughts are. Mr. Davis pointed out they are mobilizing and hiring now so they need to finalize the location or otherwise they cannot be in Minnesota this winter. Councilmember Weidner asked what happens if the levee wall is damaged by building again close to the levee wall or the wall near Sam Bloomer; and Mr. Davis replied if it's under their permit and they build there, Ice Castles would be responsible. Councilmember Weidner stated he would prefer the venue be downtown rather than Bridgeview Park. Councilmember Junker stated he would love to have the attraction back in Stillwater and would like the footprint to be no bigger than last year to address the concerns. Mayor Kozlowski commented if the structure can be made bigger without impacting critical infrastructure, he has no problem with it. He does not want to do irreversible damage to the park or the levee and he does not want to still have the Ice Castle there in June. Councilmember Junker pointed out that even though the attraction brings a lot of visitors and is great for downtown businesses,having Lowell Park basically shut down in that area from October 15 to almost Memorial Day is a detriment especially with poor clean-up. Mr. Davis stated knowing that they now have permission to put clean ice into the river will help with clean-up. They run electrical lines straight through the walls so they cannot just chop up the walls and throw them into the river, but they can take out large portions of ice at once. They figured that out too late for last year. They can put 2/3 of the ice in the river and be extremely confident that they are not polluting anything. Robert Benson, Manager of the Water Department, recognized the value of the Ice Castle to downtown, but stated that water conservation must be considered. He shared the Water Department's concern that water conservation has not been mentioned, despite an agreement as part of the City's long term water supply plan to reduce consumption by 10%. He also noted that the Water Department is currently challenging a court order to establish a watering ban based on the level of White Bear Lake. He stated the Water Board's recommendations for the Council are to cap usage at 11,000 gallons for 2018-2019 Ice Castle, and to require the Ice Castles to find another source other than groundwater for future years, perhaps treated river water or water from an artesian well that flows into the storm sewer on Third Street. Mr. Davis stated they can set their water usage around 11 million gallons and use a regulator to control the flow. Motion by Councilmember Weidner, seconded by Councilmember Menikheim,to approve the use of Lowell Park for the Ice Castle for the 2018-2019 season, with conditions recommended by staff Ayes: Councilmembers Menikheim, Junker, Weidner and Mayor Kozlowski Nays: None City Administrator McCarty stated staff will work with the Ice Castles to develop precise language for the agreement and bring it back for final approval. Page 11 of 15 City Council Meeting September 18, 2018 NEW BUSINESS Possible approval of first reading of ordinance amending various chapters of the City Code and possible adoption of resolution amending Resolution 92-249, Establishing Downtown Parking Commission and Bylaws City Clerk Ward stated that as a result of the update to Chapter 22, an ordinance is needed to remove some items out of specific chapters because they are addressed in Chapter 22. Motion by Councilmember Menikheim, seconded by Councilmember Weidner, to approve first reading of an ordinance amending the Stillwater City Code and directing staff to prepare a final reading for October 2; to adopt Resolution 2018-204, resolution rescinding resolutions 2017-096, 2009-95, 2008-36 and amending resolution 92-249 Establishing Downtown Parking Commission and Bylaws. Ayes: Councilmembers Menikheim, Junker, Weidner and Mayor Kozlowski Nays: None Possible adoption of resolutions declaring costs to be assessed and ordering preparation of assessment roll and calling for hearing for 2018 Street Improvement Project (Project 2018-02) Public Works Director Sanders reported that the 2018 Street Improvement Project is scheduled to be completed by the end of October. The overall cost is $2.3 million. Staff recommends that the Council declare costs, authorize the preparation of the assessment roll, and call for a hearing. Motion by Councilmember Weidner, seconded by Councilmember Junker,to adopt Resolution 2018- 205, resolution declaring cost to be assessed and ordering preparation of proposed assessments for 2018 Street Improvement Project (Project 2018-02); and to adopt Resolution 2018-206, resolution calling for hearing on proposed assessment for 2018 Street Improvement Project (Project 2018-02), L.I. #417. Ayes: Councilmembers Menikheim, Junker, Weidner and Mayor Kozlowski Nays: None Possible adoption of resolutions declaring costs to be assessed and ordering preparation of assessment roll and calling for hearing for Third Street South Street Improvement Project(Project 2018-09) Public Works Director Sanders stated that the County's contractor is near completion of the South Third Street project. The assessed portion of the improvements are primarily for the City's share of the curb and gutter costs and the cost of the retaining wall and the water service for the Armory. Staff has estimated the cost of the project and recommends that the Council declare costs, authorize the preparation of the assessment rolls, and call for a hearing. He informed the Council that the Armory assessment is well above $300,000 and the rest of the properties' assessments are around $500-$1,000. He would like to amend the resolution to separate the term to pay the assessments, stating that assessments greater than $300,000 shall have a ten year term at 4.25% interest and assessments that are less than $300,000 shall have a five year term at 4.25% interest. Motion by Councilmember Junker,seconded by Councilmember Weidner,to adopt Resolution 2018- 207, resolution declaring cost to be assessed and ordering preparation of proposed assessment for Third Street South Improvement Project(Project 2018-09),with the staff-recommended amendment. Ayes: Councilmembers Menikheim, Junker, Weidner and Mayor Kozlowski Nays: None Page 12 of 15 City Council Meeting September 18, 2018 Motion by Councilmember Junker, seconded by Councilmember Menikheim, to adopt Resolution 2018-208,resolution calling for hearing on proposed assessments for Third Street South Improvement Project (Project 2018-09), L.I. #418. Ayes: Councilmembers Menikheim, Junker, Weidner and Mayor Kozlowski Nays: None Possible adoption of three resolutions a. Adopting the proposed tax levy for the payable year 2019; b. Adopting the proposed budget for the year 2019; c. Setting payable 2019 Truth-in-Taxation meeting date Motion by Councilmember Weidner, seconded by Councilmember Junker,to adopt Resolution 2018- 209, adopting the proposed Tax Levy for the payable year 2019. Ayes: Councilmembers Menikheim, Junker, Weidner and Mayor Kozlowski Nays: None Motion by Councilmember Weidner, seconded by Councilmember Menikheim, to adopt Resolution 2018-210, adopting the proposed Budget Appropriations for the year 2019. Ayes: Councilmembers Menikheim, Junker, Weidner and Mayor Kozlowski Nays: None Motion by Councilmember Weidner, seconded by Councilmember Dunker,to adopt Resolution 2018- 211, setting payable 2019 Truth-In-Taxation public meeting. Ayes: Councilmembers Menikheim, Junker, Weidner and Mayor Kozlowski Nays: None Councilmember Weidner noted this is retiring Finance Director Harrison's last budget. The Council thanked Ms. Harrison for her many years of dedicated service. Possible award of bids for Phase III City Hall Improvements City Administrator McCarty reviewed the elements for which bids were opened. The total bid amount exceeded the budgeted dollars. The construction management firm and staff recommend awarding the low bid within the budget and deleting items from the contract to bring it within the budgeted amount. Staff requests the Council approve a resolution awarding the low bid,with final contracts to be negotiated within the budgeted amount. Motion by Councilmember Weidner, seconded by Councilmember Menikheim,to adopt Resolution 2018-212, Accepting bids and awarding contract for Phase 3 of City Hall Remodeling Project. Ayes: Councilmembers Menikheim, Junker, Weidner and Mayor Kozlowski Nays: None Request to waive Short Term Home Rental requirement for impervious driveway surface City Planner Wittman reviewed the request. Linda Ergen has applied for a Type B vacation rental for her home at 1212 William Street North. The City's Short Term Home Rental (STHR) ordinance requires guest parking to be located on improved parking spaces. The Ergen driveway is improved with Class 5 rock. Ms. Ergen is requesting a waiver of the prohibition on Class 5 driveways for STHR properties. Given that the driveway is abnormally long, staff recommends approval of the current mix of Class 5 for this specific Short Term Home Rental property. Page 13 of 15 City Council Meeting September 18, 2018 Motion by Councilmember Weidner, seconded by Councilmember Menikheim, to waive the prohibition on Class 5 driveways for the STHR property located at 1212 William Street North. Ayes: Councilmembers Menikheim, Junker, Weidner and Mayor Kozlowski Nays: None COMMUNICATIONS/REQUESTS There were no communications/requests. COUNCIL REQUEST ITEMS There were no Council request items. CONVENE TO CLOSED SESSION FOR ATTORNEY-CLIENT PRIVILEGED COMMUNICATION UNDER 13D.05 SUBD. 3(B) TO DISCUSS PENDING LITIGATION Motion by Councilmember Weidner, seconded by Councilmember Junker, to convene to closed session. All in favor. The meeting convened to closed session at 10:11 p.m. RECONVENE TO OPEN SESSION The meeting was reconvened to open session at 10:53 p.m.. ADJOURNMENT Motion by Councilmember Weidner, seconded by Councilmember Menikheim, to adjourn the meeting at 10:54 p.m.. All in favor. Ted Koz i, Mayor ATTEST: /0,,,,;,„ 4./• i(),A,(__, Diane F. Ward, City Clerk Resolution 2018-199, Directing the Payment of Bills Resolution 2018-200, approval of 2%payment increase for Railroad Lease charged to St. Croix Boat&Packet Resolution 2018-201, a resolution amending Special Use Permit Resolution 2003-241 for Stillwater Mills on Main(350 Main Street N, CPC Case No. 2018-11) Resolution 2018-202,a resolution approving the trash enclosure and maintenance agreements for trash enclosure located adjacent to 301 S. Main Street Resolution 2018-203, NOT USED Resolution 2018-204, resolution rescinding resolutions 2017-096, 2009-095, 2008-36 and amending resolution 92-249 establishing Downtown Parking Commission and Bylaws Resolution 2018-205, resolution declaring cost to be assessed and ordering preparation of proposed assessment for 2018 Street Improvement Project(Project 2018-02) Page 14 of 15 City Council Meeting September 18, 2018 Resolution 2018-206, resolution calling for hearing on proposed assessment for 2018 Street Improvement Project(Project 2018-02), L.I. #417 Resolution 2018-207, resolution declaring cost to be assessed and ordering preparation of proposed assessment for Third Street South Improvement Project, Project 2018-09 Resolution 2018-208, resolution calling for hearing on proposed assessment for Third Street South Improvement Project, Project 2018-09, L.I. #418 Resolution 2018-209, adopting the proposed Tax Levy for the payable year 2019 Resolution 2018-210, adopting the proposed Budget Appropriations for the year 2019 Resolution 2018-211, setting payable 2019 Truth-In-Taxation public meeting Resolution 2018-212,Accepting bids and awarding contract for Phase 3 of City Hall Remodeling Project Ordinance 1110, 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 (Lot 7, Block 2, Neal Meadows) (Livermore Plat) Ordinance 1111, 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 (Lot 5, Block 2,Neal Meadows) (Ross Plat) Ordinance 1112,an ordinance amending the Stillwater City Code Sec.31-521, Slope Regulations Page 15 of 15