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HomeMy WebLinkAbout1998-12-08 CC MIN ~:~~ .~ : r r r CITY OF STILLWATER CITY COUNCIL MEETING NO. 98-30 December 8, 1998 SPECIAL MEETING 4:30 P.M. The meeting was called to order by Mayor Kimble. Present: Absent: Also Present: Councilmembers Bealka, Cummings, Zoller and Mayor Kimble Councilmember Thole City Coordinator Kriesel City Attorney Magnuson Fire ChiefKallestad City Engineer Ecldes Community Development Director Russell City ClerkWeldon I. Consideration of license for fuel tank installation by Stillwater Yacht Club. City Coordinator Kriesel reported this issue was before Council at the December 4, 1998, meeting. At that time, Scott Olson, Director of Operation of the Stillwater Yacht Club, requested permission to bury a 10,000 gallon fuel tank on City property. The Yacht Club had removed two tanks that were located on City property and are requesting to place a 10,000 gallon tank in the same location. The tanks were apparently placed in the ground while the property was owned by the railroad, who in turn leased the property to the Yacht Club. The property was later purchased by the City and leased to the Yacht Club. However, no fees have been collected during the past two years because of high water in 1997 and the levee project work in 1998. There is no license or agreement with the Yacht Club for the installation of the new tank on City property. City Attorney Magnuson reported he has prepared a license agreement for consideration. It would take care of the liability and indemnification, and hold harmless issues if the Council agrees to allow placement of the tank on city property. City Coordinator Kriesel also stated another option would be to sell the property to the Yacht Club. This might resolve future property ownership issues and protect the City further if an environmental problem develops because of the tank. A sale would require a lengthy " notification and hearing process (approximately 60-90 days) as required by Article 16.01 of the City Charter. City Attorney Magnuson stated the City is embroiled in litigation with the Stillwater Yacht Club. The Club is claiming vested rights in the property. The City's position is that there are no vested rights. Vested interests do not accrue under a lease. Julieanne Fiedler, counsel for Stillwater Yacht Club, stated there were more global issues involved in the litigation. They believe they have an easement across the parcel. They are ready to move forward on the purchase of the property. She also stated the purchase will not eliminate litigation related to Lowell Park, the gas dock, boat launch, riparian rights, and the economic effect on the Yacht Club. She stated she was not in a position to state the litigation would be dropped if the property was sold to the Yacht Club. . 1.. .. City Council Meeting 98-30 r r (' December 8, 1998 Councilmember Cummings questioned if the launch could be replaced. Councilmember Zoller stated he was opposed to a launch in that location and further stated he did not want to proceed without guarantees that this would be an end to all of the issues. He questioned what benefit there was to the City. City Coordinator Kriesel stated the benefit would be that the business has operated at this location for a long time and the business is a value to the community. Fire Chief Kal1estad clarified the Fire Department issues only tank removal permits. The Fire Department does not issue installation permits. Discussion followed related to liability issues, park design, and options for the placement of the tank in other locations. Karl Ranum, representing Wolf Marine, asked special favors not be granted by the City. Wolf Marine and Sunnyside have gas docks on private land. Wolf Marine has asked no special favors, nor operated with threats. He requested a level playing field for all. Jeff Johnson, Heritage Preservation Commission (HPC), stated the HPC has been involved in the development of Lowell Park and the use or possible sale of this property would be a strong reversal in the park development. He stated to allow the purchase of this property would be to go against the Charter Commission intent and City plans for the park. He suggested the marina should come to the City, drop the lawsuit, or buy property across the tracks. Motion by Councilmember Cummings, seconded by Councilmember Bealka directing statTto begin the process for the sale of City property to the Stillwater Yacht Club, set the public hearing, and further direct staff to prepare the park plan. 3-1 (Zoller nay, Thole absent) City Coordinator Kriesel noted the new tank is on site. If it becomes a public safety issue, the Yacht Club is on notice the City will need to take action. Fire Chief Kallestad stated the tank must be secured from rolling and the hole should be filled in. Ms. Fiedler stated the hole will be filled. Scott Olson, manager of the Stillwater Yacht Club, asked if the City would approve the installation on Yacht Club property 1100 feet to the north. Fire Chief Kallestad stated he would need to check the site. 2. Consideration of Fire Relief Association pension plan approval. City Coordinator Kriesel presented the request of the Stillwater Fire Relief Association for City approval of their pension increase. The increase would go from $2800 per year of service to $3250 per year of service for 1998 and $3500 for 1999. He had previously believed the City's approval was not necessary. However, the State Auditor's Office concurs with the Association that City approval is necessary because the pension levels exceed an amount that would not require City approval. This higher level does give liability to the City. Mr. Kriesel stated the 2 . ,. .. A...... .. (" (' r City Council Meeting 98-30 December 8, 1998 Council has no control of the assets, therefore the City should not have responsibility or liability. He recommended that if Council approved the pension increase that the Council request that in the future the Association set the pension at a level that would not require City approval. (Councilrnember Bealka left the meeting at 5:50 p.m.) Jeff Cutler, Stillwater Fire Relief Association, stated the plan is fully funded. Motion by Councilrnember Cummings, seconded by Councilrnember Zoller to adopt Resolution 98-314 approving changes in the bylaws of the Stillwater Fire Relief Association by increasing pension levels. 2-0-1 (Kimble abstain, Thole and Bealka absent) Motion by Councilrnember Zoller, seconded by Councilrnember Cummings to adjourn to executive session at 6:05 p.m. to discuss pending litigation. All in favor. ~~~ yor Attest: lY]&ld:.I;JJ~~/ City Clerk Resolution 98-314: Approving changes in the bylaws of the Stillwater Fire Relief Association by increasing pension levels. 3