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HomeMy WebLinkAbout1997-12-16 CC MIN . ~ r r (" CITY OF STILLWATER CITY COUNCIL MEETING NO. 97-31 December 16, 1997 REGULAR MEETING 7:00 P.M. The meeting was called to order by Mayor Kimble. Present: Councilmembers Bealka, Thole, Zoller and Mayor Kimble Absent: Councilmember Cummings (arrived 7:50 p.m.) Also present: City Coordinator Kriesel City Attorney Magnuson Finance Director Deblon Community Development Director Russell City Engineer Eckles Gerald Fontaine, Planning Commission City Clerk Weldon Press: Julie Kink, Courier Mike Marsnik, Stillwater Gazette APPROVAL OF MINUTES Motion by Councilmember Bealka, seconded by Councilmember Thole to approve the minutes of December 2, 1997, Regular and Recessed Meetings. All in favor. CONSENT AGENDA- Motion by Councilmember Bealka, seconded by Councilmember Thole approving the Consent Agenda. Ayes: Nays: Absent: Councilmembers Zoller, Thole, Beaika and Mayor Kimble. None. Councilmember Cummings. 1. Resolution 97-287: Directing Payment of Bills. 2. Resolution 97-288: Permanent employment of Rose Holman as Secretary. 3. Resolution 97-289: Renew Towing License for 1998 - Stillwater Towing. 4. Resolution 97-290: Employment of warming house attendants. 5. Resolution 97-291: Designation of depositories for 1998. 6. Resolution 97-292: Approving contract with Chuck Bailey Construction for installation of picnic shelters at Lily Lake Beach picnic area. 7. Contractors Licenses: Jim Greeley Signs and Awnings, Richland Center, WI; Beaver Plumbing Co., Inc., Cedar, MN; Kellison Company, Oakdale, MN; Jim Weber General Contracting, Inc., Stillwater; and Bayside Neon, Inc., Stillwater. 8. Resolution 97-293: Relating to reimbursement bond regulations under IRS code. 9. Maintenance agreement with IKON Office Solutions for photocopiers. , . City Council Meeting No. 97-31 December 16, 1997 c STAFF REPORTS 1. Finance Director Deblon presented a quotation for workers' compensation deposit premium from the League of Minnesota Cities Insurance Trust (LMCIT). She recommended the Retro-rated premium option. She requested Council direction. Motion by Counci1member Thole, seconded by Councilmember Zoller approving worker's compensation retrospectively-rated premium option, as recommended by Finance Director. All in favor. Finance Director Deblon also reported a liability premium dividend check in the amount of $68,923 had been received from LMCIT. 2. City Engineer Eckles presented a request from the Middle River WMO for City support for state funding to reconstruct and/or replace the State of Minnesota storm sewer servicing the Stillwater Correctional Facility in Bayport. Motion by Councilmember Thole, seconded by Councilmember Zoller directing letter be sent to Senator Laidig supporting the approval of a $2.4 million bonding program to reconstruct and/or replace the State storm sewer serving the Minnesota Correctional Facility in Bayport. All in favor. 3. City Clerk Weldon provided Council with a list of 1998 Council meeting dates. She stated regularly scheduled meetings of September 15 and November 3 fall on election days; no meetings are allowed to be held from 6-8 p.m on election days. She requested Council direction for the rescheduling of the meetings r Motion by Councilmember Thole, seconded by Councilmember Zoller rescheduling the September 15, 1998, Council meeting to September 22, 1998, and the November 3, 1998, meeting to November 10, 1998. All in favor. 4. City Coordinator Kriesel informed Council MnDOT will be doing maintenance work on the lift bridge from 10 a.m. to 1 p.m. on December 17. City Coordinator Kriesel requested executive session after the regular session tonight to discuss contract proposals to the City from AFSCME Local 517; Stillwater Fire Association; and Local No. 49 (Public Works). UNFINISHED BUSINESS 1. Awarding bid for sale of $4,610,000 General Obligation Sports Center Bonds, Series 1998A. Ron Langness, Springsted, Inc., reported nine bids were received at 11 a.m. on December 16, 1997. Motion by Councilmember Thole, seconded by Councilmember Zoller to adopt Resolution 97-294 awarding the sale of $4,610,000 General Obligation Sports Center Bonds, Series 1998A, to Solomon Smith Barney. c Ayes: Nays: Absent: Councilmembers Zoller, Thole, Bealka and Mayor Kimble. None. Counci1member Cummings. 2 City Council Meeting No. 97-31 December 16, 1997 2. Adootiru! final tax levv for 1998. ,..... Finance Director Deblon stated the tax levy proposed for adoption is the same as presented at the truth in taxation hearing. Motion by Councilmember Thole, seconded by Councilmember Bealka to adopt Resolution 97-295 adopting fInal tax levy of $4,216,986 for the Year 1998. Ayes: Nays: Absent: Councilmembers Zoller, Thole, Bealka and Mayor Kimble. None. Councilmember Cummings. 3. Adootiru! final budl!et for 1998. Finance Director Deblon presented the proposed operating budget for the General Fund, with revenues and expenditures in the amount of $6,497,274, for adoption. She stated it was the same as proposed at the Truth in Taxation hearing. She recommended a change, as requested by the City Engineer, in the 1998 sewer fund budget for the following additions of capital outlay: one-ton truck, Aiple Lift Station, Lily Lake Lift Station, and Myrtle Street Lift Station. These items will not be paid with bond funds, but will be paid with sewer fund revenues. Motion by Councilmember Thole, seconded by Zoller, to adopt Resolution 97-296 adopting the fInal budget of $6,497,274 for the Year of 1998. (" Ayes: Nays: Absent: Councilmembers Zoller, Thole, Bealka and Mayor Kimble. None. Councilmember O.mmings. The Mayor requested Unfmished Business items 4 and 5 be held until Councilmember Cummings arrived later in the meeting. 6. Request by Mainstream Development Partnership for Tax Increment Financing Assistance for new grocery store office building at North Main Street (old Maple Island Plant). Community Development Director Russell summarized the assistance requested by the developer as follows: 1) Developer purchase railroad land and give to city ($150,000 repaid to developer with RIF); 2) Developer purchase Water Street parking lot from city for $150,000 using TIF; 3) Developer improve Water Street parking lot $275,000 TIF est; 4) Developer demolish Maple island building and prepare site for redevelopment $330,000 TIF; and city improve street, pedestrian and parking areas around site $420,000 est. TIF. Community Development Director Russell explained there is not adequate TIF generated by the project to provide for the project related costs requiring TIF assistance as proposed. (' Staff recommended the following assistance: 1) City leases parking site to grocery store for 25 years or term of grocery store tenure on the site; 2) developer improve parking lot using pay as you go (payg) $275,000 est TIF; 3) developer receive payg TIF to off-set cost of Maple island building demolition $330,000 est. TIF; and 4) City improve area streets, pedestrian and parking areas as public improvement project (benefiting property owners pay a portion of the costs, TIF 3 City Council Meeting No. 97-31 December 16, 1997 from project pay remainder. Same approach used on downtown revitalization improvements (" 1990). Vem Stefan and Tim Stefan, Mainstream Development Partnership, presented their request and provided information on building design. Vem Stefan requested the City improve the parking lot. Finance Director Deblon stated staff recommendations were based on no bonds being issued; there is a risk to the City if bonds are issued. Motion by Councilmember Thole, seconded by Councilmember Bealka directing staff to prepare development agreement with Mainstream Development Partnership for Maple Island site redevelopment, as recommended by staff. All in favor. 7. Report on revised Market Place design guidelines (signs). Community Development Director Russell reported the Design Review Commission and Planning Commission had met, as directed by Council, and have approved a revised Stillwater Market Place Comprehensive Sign Plan, which allows businesses along County Road 5 to have additional signage on the back of their buildings advertising to Co. Rd. 5. No action necessary. r Councilmember Cummings arrived at 7:50 p.m. (" 8. St. Croix Valley Recreation Center (sports complex): a) Approving construction manager contract r I Motion by Councilmember Zoller, seconded by Councilmember Cummings to adopt Resolution 97- 297 approving construction manager agreement with George W. Olsen Construction Co., Inc., for St. Croix Valley Sports Complex. Ayes: Councilmembers Zoller, Thole, Bealka, Cummings and Mayor Kimble. Nays: None. b) Award of bids for mechanical and electrical work. Motion by Councilmember Thole, seconded by Councilmember Cummings to adopt Resolution 97- 298 awarding contract to Area Mechanical, Inc., for mechanical work and Gephart Electric Co., Inc., for electrical work for St. Croix Valley Sports Complex. Ayes: Councilmembers Zoller, Thole, Bealka, Cummings and Mayor Kimble. Nays: None. c) Update on construction progress. Community Development Director Russell reported the project is ahead of schedule, due to mild winter weather conditions. r City Coordinator Kriesel requested Council approve change orders for fencing to protect the top of the retaining wall ($2,200) and for installing a fabric and rock fill to cover area behind the wall ($2,800). The fencing is required to meet code requirements and the surfacing will minimize maintenance of the area. 4 City Council Meeting No. 97-31 December 16, 1997 ('" Motion by Councilmember Zoller, seconded by Councilmember Thole to adopt Resolution 97-299 approving change orders for rock and fabric at retaining wall ($2,800) and fencing to protect top of retaining wall ($2,200), St. Croix Valley Sports Complex. Ayes: Councilmembers Zoller, Thole, Bealka, Cummings and Mayor Kimble. Nays: None. Community Development Director Russell reported staff had received and reviewed product information for selection of surface for field house. Various sites with different surfaces were visited and discussions held with the architect and representatives of the St. Croix Soccer Club. Staff is recommending Astrograss because of the broader community use, lower maintenance costs, and air quality considerations. The sand filled products were preferred by the Soccer Club. Kevin Foster, St. Croix Valley Soccer Club, stated he felt other uses would be accommodated by the use of a play surface over the sand. He also felt the air quality was not affected by the sand filled surface, citing the Woodbury facility as an example. I Motion by Councilmember Thole, seconded by Councilmember Cummings to adopt Resolution 97- 305 awarding contract to Southwest Recreational Industries, Inc., for field house playing surface (AstroGrass) in the amount of $395,000, bid alternative 7C-2, without sand. (' Ayes: Councilmembers Zoller, Thole, Bealka, Cummings and Mayor Kimble. Nays: None. Community Development Director Russell also presented a memo from Dick Olsen suggesting the sports facility commission be reactivated to raise funds for project enhancements such as refrigeration of outdoor ice or arena seating. Motion by Councilmember Thole, seconded by Councilmember Zoller directing staff to return with list of possible members for possible reactivation of St. Croix Valley Sports Facility Commission. All in favor. Community Development Director Russell then discussed the request of MnDOT to construct a park and ride lot on the complex property, as presented to Council at the last meeting. He requested authorization to have the civil engineer for the sports complex prepare plans and cost estimates; this would allow the State to proceed with the bidding process. Motion by Councilmember Thole, seconded by Councilmember Bealka authorizing the civil engineer for the sports complex to prepare plans and cost estimates for park and ride lot at sports complex property. All in favor. The Mayor recessed the meeting at 8:15 p.m. and reconvened at 8:40 p.m. r (Return to items 4 & 5 of agenda order) 4. Annexation Area Storm Sewer Feasibility Report -Development Agreement for annexation area Sherry Buss, Bonestroo Rosene Anderlik & Assoc., presented the fInal report on the Stillwater 5 City Council Meeting No. 97-31 December 16, 1997 (" (AUAR) Storm Water Feasibility Study. The report describes three phases of improvements that deal with Long lake flooding, diversion of runoff to Lake McKusick and Browns Creek reconstruction. The improvements are necessary to reduce Long Lake flooding and mitigate impacts to trout stream from future development. Dan Edgerton, Erik Peters, and Robert Schunicht were also present. Erik Peters discussed historical lake levels and other technical aspects. It was noted the current level is I Ih feet higher than allowable by DNR permit. City Engineer Eckles stated the City needs to cooperate with the DNR in following the regulations and decrease the level as required by the DNR. If the property owners want it maintained at the current higher level, they must all agree to the higher level, petition the City, and the City in turn must petition the DNR for an amendment to the permit. City Engineer Eckles reported the costs associated with these improvements are proposed to be recaptured by charging new development within the expansion area. Motion by Councilmember Thole, seconded by Councilmember Cummings, to adopt Resolution 97- 300 receiving final report, the Stillwater (AUAR) Storm Water Feasibility Study, and adopting financing method concept to recoup annexation area storm sewer costs. Ayes: Councilmembers Zoller, Thole, Cummings, Bealka and Mayor Kimble. Nays: None. (" 5. Development Agreements for trunk sewer and water, The Legends of Stillwater and Liberty of Long Lake City Attorney Magnuson presented draft development agreements, explaining adjustments will be made by computing the net developable acreage for purposes of the trunk sewer and water oversizing credit and also for determining the anticipated storm water benefit that will be used to off-set the oversizing work on the trunk sewer and water that will be done by the developers. He stated the drafts will be reviewed by the developers, numbers finalized, and the agreements will be returned to Council for final approval at a later meeting. (No action necessary at this time) 8. Report: Sale of City owned land in Business Park to Lakeview Hospital. Community Development Director Russell reviewed the offer from Lakeview Hospital to purchase 7.5 acres of city-owned land in the business park for $650,000. The intended use is for medical related service. They indicated the vacant space could be used for soccer fields in the interim. If it is determined the space is not needed for medical facilities, the hospital would work with the city on an appropriate use of the site. Councilmember Zoller questioned if there was a need to sell the land now or if it would be better to hold it and sell after it has increased in value. Finance Director Deblon reported the offered price is approximately what the City has in it now. The value would not increase sufficiently to offset the costs of taxes paid in the interim. r City Attorney Magnuson reported this parcel does not fall under the provisions of the City Code for public notice of the sale of City land. That provision specifically excludes land held for redevelopment; it pertains to land held for park or public use. 6 City Council Meeting No. 97-31 December 16, 1997 (" Motion by Councilmember Zoller, seconded by Councilmember Thole to adopt Resolution 97-306 directing staff to prepare the necessary agreement for sale 7.5 acres in Business Park to Lakeview Hospital for $650,000 and directing the Mayor and Clerk to sign said agreement. Ayes: Councilmembers Zoller, Thole, Cummings, Bealka and Mayor Kimble. Nays: None. 9. Receipt of Rivard Property appraisal and direction for offer to purchase. Community Development Russell reported the appraisal of the Rivard property has been completed, as requested by Council. This property, which the City is considering for a park or public purpose, has an appraisal value of $675,000. A previous lower offer was submitted but was not acceptable to the seller. Motion by Councilmember Thole, seconded by Councilmember Cummings directing staff to negotiate for the purchase of the Rivard property, prepare agreements, and return to Council for approval. All in favor. 10. Review and approval of Request for Proposal for Aiple Property Master Plan Development. Community Development Director Russell presented the Request for Proposal (RFP) for the Aiple Property and Kolliner Park. The hiring of a consultant for a master plan of the properties is the next step in the planning process and Downtown Plan update. (" Councilmember Zoller requested the RFP be amended to list Kolliner Park as an alternate in the proposal. He felt the Aiple property should be the main focus. Motion by Councilmember Thole, seconded by Councilmember Cummings approving for issuance the Request for Proposal for Aiple Property and Kolliner Park, as amended. All in favor. NEW BUSINESS 1. Request for extension of use of leased (Aiple) property. City Coordinator Kriesel presented a request from Elaine Aiple regarding the possible use of the barge repair area beyond the lease expiration date of September 1998. The area would be used to build two barges that would be started this year and may need to extend beyond September 1998 for completion. She also informed Mr. Kriesel that the building at the north end of the property will soon be available to the City, and it appeared she is willing to discuss City access to this area before the lease is ended. It is possible this area could be developed into a parking lot by late spring or early summer. r Council directed staff to meet and confer with Mrs. Aiple to determine city use of other leased property. Council also directed any agreement clearly state this use after the lease expiration gave no vested rights and was not an extension of the lease. Motion by Councilmember Thole, seconded by Councilmember Bealka approving use of barge repair area (Aiple property) through the end of 1998 and directing City Attorney Magnuson to prepare , necessary documents. All in favor. 7 City Council Meeting No. 97-31 December 16, 1997 r 2. Legal newspaper for 1998 (Resolution). City Coordinator Kriesel presented letters from Mike Mahoney, Stillwater Gazette, and Robert Liberty, Stillwater courier, proposing to continue to provide publication services for the City during 1998. For the past three years, the Gazette has published legal notices and the Courier has published minutes of meetings. He recommended this arrangement continue and a cost increase of 3% be approved. Motion by Councilmember Cummings, seconded by Councilmember Thole to adopt Resolution 97- 301 designating Stillwater Gazette as official publication for Legal Notices, Stillwater Courier as official publication for Proceedings, approving 3 % increase from 1997 contract, and authorizing execution of contracts for 1998 Legal Newspapers. Ayes: Councilmembers Zoller, Thole, Cummings, Bealka and Mayor Kimble. Nays: None. 3. Adopting Flex Benefit Plan changes. Finance Director Deblon reported City Coordinator Kriesel had requested a reduction in the waiting period for the employee Flex Benefit Plan from one year to six months to coincide with the probationary period of some employees and also requested an increase in reimbursement limit from $2,000 to $2,500. (" Motion by Councilmember Cummings, seconded by Councilmember Bealka to adopt Resolution 97- 302 reducing waiting period for Employee Flexible Benefit Plan to six months and increasing the medical reimbursement amount to $2,500. Ayes: Councilmembers Zoller, Thole, Cummings, Bealka and Mayor Kimble. Nays: None. 4. City ParticiDation in Stillwater TownshiD Road Maintenanl'-c. City Engineer Eckles presented information on the City cost share of Stillwater Township road maintenance in the expansion area. The City has a cost sharing obligation with the township according to the Orderly Annexation Agreement. The City share for 1997 is $19,158.49. Motion by Councilmember Zoller, seconded by Councilmember Thole authorizing payment to Stillwater Township for cost sharing for 1997 bituminous road maintenance projects. All in favor. 5. Reoort: Olive Street Dump Site. r City Engineer Eckles reported the City had emolled the site in the Voluntary Investigation and Cleanup Program with the Minnesota Pollution Control Agency (MPCA). The MPCA has made a determination that no investigations or response actions are warranted at the site. Eckles also provided Council a copy of the letter to Deer Path Residents explaining the MPCA response and stating the City, based on the MPCA findings, plans no further action on this site. 8 City Council Meeting No. 97-31 December 16, 1997 6. Reauest for time extension on 1997 exoenditures - Enl!ineerinl!. r City Engineer Eckles requested extension of the following 1997 budget items to 1998: three lift station repairs, purchase of one ton truck, and purchase of large format copier. Motion by Councilmember Thole, seconded by Councilmember Cummings authorizing extension of three lift station repairs, purchase of one ton truck, and purchase of large format copier from 1997 to 1998 engineering budget. Ail in favor. 7. ADDroval of contract for computer services to develoD ArcView GIS ~ilot Droject. Community Development Director Russell reported the city has increased its computer and GIS capabilities over the past two years. In order to incorporate existing paper maps, utility construction drawings, and develop formats for digital map input, consultant services are needed. He presented a proposal from PlanSight. LLC, to provide the format for digital input into the City system and also includes training of public works and planning staff. Motion by Councilmember Thole, seconded by Councilmember Cummings to adopt Resolution 97- 303 approving contract with PlanSight, LLC, for services for GIS/Planning/Public Works Project in the amount of $5,370. r Ayes: Councilmembers Zoller, Thole, Cummings, Bealka and Mayor Kimble. Nays: None. 8. Authorizing execution of Agreement and Certificate of Incumbency - Mighty Ducks Grant. City Coordinator Kriesel presented the Grant Agreement between the City of Stillwater and the Minnesota Amateur Sports Commission for construction of an ice arena. / Motion by Councilmember Thole, seconded by Councilmember Cummings to adopt Resolution 97-304 authorizing execution of Agreement with Minnesota Amateur Sports Commission and Certificate of Incumbency for Mighty Ducks Grant. Ayes: Councilmembers Zoller, Thole, Cummings, Bealka and Mayor Kimble. Nays: None. COUNCIL REOUEST ITEMS Mayor Kimble presented request from Len Nelson, Len's Family Foods, to purchase City property for expansion of his business and to alleviate parking problems. r Motion by Councilmember Bealka, seconded by Councilmember Zoller directing staff to meet with Len Nelson to discuss options for sale of City property adjacent to Lens' Family Foods. All in favor. STAFF REPORTS (continued) 5. City Attorney Magnuson informed Council on changes in municipal liability limits effective January 1, 1998. He stated the increases might bring about a slight increase in premiums but 9 . . r r (' City Council Meeting No. 97-31 December 16, 1997 should not be significant. Another feature of the new law authorizes the City to waive the $300,000 per person limitation on liability and leave the $750,000 per occurrence limit. This would result in a 3.5 % increase in liability premium base, at an estimated cost of $4,400 to $5, {)()(). Motion by Councilmember Bealka, seconded by Councilmember Thole to maintain the same per person limitation on liability and per occurrence limit in 1998 as in 1997. All in favor. ADJOURNMENT Motion by Councilmember Thole, seconded by Councilmember Bealka to adjourn to executive session to discuss labor relations negotiations at 11:01 p.m. All in favor. Attest: --1Yj~l:.{Lk~J.,--. City Clerk Resolution 97-287: Directing Payment of Bills. Resolution 97-288: Permanent employment of Rose Holman as Secretary. Resolution 97-289: Renew Towing License for 1998 - Stillwater Towing. Resolution 97-290: Employment of warming house attendants. Resolution 97-291: Designation of depositories for 1998. Resolution 97-292: Approving contract with Chuck Bailey Construction for installation of picnic shelters at Lily Lake Beach picnic area. Resolution 97-293: Relating to reimbursement bond regulations under IRS code. Resolution 97-294: Awarding the sale of $4,610,000 General Obligation Sports Center Bonds, Series 1998A, to Solomon Smith Barney. Resolution 97-295: Adopting final tax levy of $4,216,986 for the Year 1998. Resolution 97-296: Adopting the fInal budget of $6,497,274 for the Year of 1998. Resolution 97-297: Approving construction manager agreement with George W. Olsen Construction Co., Inc., for St. Croix Valley Sports Complex Resolution 97-298: Awarding contract to Area Mechanical, Inc., for mechanical work and Gephart Electric Co., Inc., for electrical work for St. Croix Valley Sports Complex Resolution 97-299: Approving change orders for rock and fabric at retaining wall ($2800) and fencing to protect top of retaining wall ($2200), St. Croix Valley Sports Complex Resolution 97-300: Receiving fInal report, the Stillwater (AUAR) Storm Water Feasibility Study, and adopting fInancing method concept to recoup annexation area storm sewer costs. Resolution 97-301: Designating Stillwater Gazette as official publication for Legal Notices, Stillwater Courier as official publication for ProCeedings, approving 3% increase from 1997 contract, and authorizing execution of contracts for 1998 Legal Newspapers. 10 (" (" r City Council Meeting No. 97-31 December 16, 1997 Resolution 97-302: Reducing waiting period for Flexible Benefit Plan to six months and increasing the medical reimbursement amount to $2500. Resolution 97-303: Approving contract with PlanSight, LLC, for services for GIS/Planning/Public Works Project in the amount of $5,370. Resolution 97-304: Authorizing execution of Agreement with Minnesota Amateur Sports Commission and Certificate of Incumbency for Mighty Ducks Grant. Resolution 97-305: Awarding contract to Southwest Recreational Industries, Inc., for field house playing surface (AstroGrass) in the amount of $395,000, bid alternative 7C-2, without sand. Resolution 97-306: Directing staff to prepare the necessary agreement for sale 7.5 acres in Business Park to Lakeview Hospital for $650,000 and directing the Mayor an Clerk to sign said agreement. 11