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HomeMy WebLinkAbout2017/10/16 - ADMIN - Minutes - City Council - RegularfllSt. Louis Park OFFICIAL MINUTES M I N N E S O T A CITY COUNCIL MEETING ST. LOUIS PARK, MINNESOTA OCTOBER 16, 2017 1. Call to Order Mayor Spano called the meeting to order at 7:35 p.m Councilmembers present: Mayor Jake Spano, Tim Brausen, Steve Hallfin, Gregg Lindberg, Anne Mavity, and Susan Sanger. Councilmember absent: Thom Miller. Councilmembers absent: None. Staff present: City Manager (Mr. Harmening), City Attorney (Mr. Knutson), Chief Financial Officer (Mr. Simon), Finance Manager (Mr. Ebensteiner), Planning and Zoning Supervisor (Mr. Walther), Associate Planner (Ms. Krarner), Communications Specialist (Ms. Pribbenow), and Recording Secretary (Ms. Wirth). Guests: None. Ia. Pledge of Allegiance lb. Roll Call 2. Presentations - None 3. Approval of Minutes - None 4. Approval of Agenda and Items on Consent Calendar Mr. Harmening noted corrections as follows: 4j. Approve for filing Planning Commission minutes ofJuIY49 August 16, 2017 4k. Approve for filing Planning Commission minutes of T.� September 6, 2017 4a. Approve the Second Reading and Adopt Ordinance No. 2524-17 amending the Businesses and Licenses code relating to solid waste hauler requirements and authorize publication. 4b. Approve Second Reading and Adopt Ordinance No. 2525-17 vacating a utility easement, and approve the Ordinance Summary for publication. 4e. Approve a contract with Hoisington Koegler Group Inc. to assist in updating the city's Comprehensive Plan. 4d. Adopt Resolution No. 17-156 affirming support for Perspectives' grant application to the Brownfield Gap Financing Program. 4e. Adopt Resolution No. 17-157 approving acceptance of a scholarship from the USGBC to cover the registration fee of $1,300.00, for Shannon Pine, Environment & Sustainability Coordinator, to attend the 2017 International Greenbuild Conference in Boston, MA. 4f. Adopt Resolution No. 17-158 authorizing the special assessment for the repair of the sewer service line at 3509 Aquila Avenue South, St. Louis Park, MN. P.I.D. 18-117-21-42-0031. 4g. Adopt Resolution No. 17-159 setting the 2018 Utility Rates. City Council Meeting -2- October 16, 2017 4h. Designate Veit & Company, Inc. the lowest responsible bidder and authorize execution of a contract with the firm in the amount of $126,366.63 for the 2017 Bass Lake Preserve Outlet Project - Project No. 4014-4000. 4i. Approve for filing Planning Commission minutes of July 19, 2017. 4j. Approve for filing Planning Commission minutes of August 16, 2017. 4k. Approve for filing Planning Commission minutes of September 6, 2017. 41. Adopt Resolution No. 17-160 approving acceptance of a monetary donation from the National Association of Government Web Professionals in an amount not to exceed $3,000 for all related expenses for Jason Huber, Information Technology Manager, to attend the 2017 National Association of Government Web Professionals National Conference in San Diego, California. It was moved by Councilmember Brausen, seconded by Councilmember Mavity, to approve the Agenda as revised and items listed on the Consent Calendar; and to waive reading of all resolutions and ordinances. The motion passed 6-0 (Councilmember Miller absent). 5. Boards and Commissions - None 6. Public Hearings 6a. Consider First Reading of 2018 Fee Ordinance. Mr. Ebensteiner presented the staff report regarding the 2018 fees that are reviewed annually by departments prior to renewal and as part of the budget process. He noted that some fees must be set and adjusted in accordance with the city's ordinance code, while other fees are allowed to be set administratively. All fees are reviewed each year based on comparison to other metro cities, changes in regulations, and to make sure that the city's business costs are covered for such services. It was noted that the council received a written report at its October 9, 2017, study session that included all proposed 2018 citywide fees. Mayor Spano opened the public hearing. No speakers were present. Mayor Spano closed the public hearing. Councilmember Brausen confirmed that the new fees go into effect January 1, 2018, and encouraged developers to submit plats now. Councilmember Mavity confirmed that the city's policy in raising fees is to reflect the cost of services provided, not to impose higher costs arbitrarily. So if a fee increases, it reflects an increase in costs. Mr. Ebensteiner confirmed that is correct. It was moved by Councilmember Sanger, seconded by Councilmember Mavity, to approve First Reading of an ordinance adopting fees for 2018 and set Second Reading for November 6, 2017. Councilmember Brausen stated he had asked about increasing fees on tobacco licenses, pawn shops, adult related businesses, and billboards, and staff had explained that fees had City Council Meeting -3- October 16, 2017 to be commensurate with services rendered, even though activities at some establishments may have negative impact on the community. The motion passed 6-0 (Councilmember Miller absent). 6b. Assessment of Delinquent Charges. Resolution No. 17-161 Mr. Ebensteiner presented the staff report regarding certification of delinquent charges to Hennepin County as a means to collect outstanding fees and charges through the special assessment process. These costs include delinquent water, sewer, storm water, refuse, abating grass/weed cutting, tree removal/injection, false alarm fees, and other miscellaneous charges. If approved, certification is done via the special assessment process and becomes a lien on the individual properties that is due over the next year or several years, depending upon the type of charge. Mr. Ebensteiner reported that there was $696,515 outstanding as of the close of business today, with 1,020 accounts and $663,000 related to utility billing fees and $32,000 related to miscellaneous items. He stated that staff will continue to collect payments and resolve outstanding issues through Friday, October 27, at 4:30. After October 27, a $30 administrative fee is charged to all remaining accounts and a $75 penalty for utility accounts being certified for the second consecutive year. Mayor Spano asked how many accounts have been delinquent in payments two consecutive years. Mr. Ebensteiner stated that in 2016 there were 415 customers who paid the additional fee, and in 2017 there are currently 504 customers, but that number will decrease significantly in the next two weeks. Mayor Spano opened the public hearing. Steve Hahn, 3036 Texas Avenue, stated that he or a family member have lived at that address for 55 years. He stated that the Texas Avenue project paved part of his driveway so he decided to have the city's contractor pave the rest of his driveway, which was to be done by June 21-22 for approximately $1,500. Mr. Hahn stated it was not paved at that time, and instead in mid-August the contractor put down Class V, which was dusty, rocky, and causes trips. Then, about two weeks ago, the contractor finally put in his driveway - 14 weeks from when the work was supposed to be done. Because of the delay, Mr. Hahn stated that he had to park his car behind his property more often than in his driveway. Mr. Hahn provided several driveway photographs to the council. He stated that he was promised a lip for his garage door, but it was not installed, so now water pours into his garage and has damaged a supply of tile he had intended to use. In addition, the line from the garage to the house is wavy, not straight. By the fence it appears they threw in rock, so it looks horrible, and they did not tar an area behind his garage as promised. Mr. Hahn stated that he would like the contractor to come back and fix the project. Otherwise, he would like a good discount, which he will pay by Friday, and then he will fix the driveway himself. Mr. Hahn stated that he wants it to look nice so he gets the full value if he sells his house. Mayor Spano closed the public hearing. City Council Meeting -4- October 16, 2017 Councilmember Lindberg stated that he will talk with the City Manager about the challenges with this project and get a response back to Mr. Hahn. Mayor Spano asked if there is an actionable item to take on this driveway cost pursuant to what Councilmember Lindberg is suggesting. Councilmember Lindberg stated that it is two separate issues, and he will be sure the engineering staff is involved. Mr. Harmening stated this is on the list of assessments because Mr. Hahn was sent a bill of approximately $1,500 for the driveway work, and it was not paid. If the council wants staff to look into it further to determine whether more work is needed, it can be certified next year. He stated that this item is unique as it does not involve utility bills. Councilmember Sanger asked if the list is certified with this amount and the issue is resolved before the October 27 deadline by the process Councilmember Lindberg outlined, will this amount be removed from the certification. Councilmember Lindberg stated that he was not aware that what Mr. Harmening proposed was an option, and he thinks it would be reasonable to take Mr. Hahn's assessment off the list, hold that discussion, and try to work it out. Mr. Harmening asked if the request is to remove just this one item. Councilmember Lindberg answered in the affirmative. Mr. Harmening stated that the council could leave it in, work out the issues by October 27, and then either assess a reduced amount or delete it if paid. Mr. Knutson advised this is not an administrative decision, and if the assessment is adopted tonight with this amount included, only the council can change it. Councilmember Sanger asked whether there was a contractual agreement with Mr. Hahn that specifies the items like drainage and the garage lip. Mayor Spano stated his preference is to pull this one assessment from the certification list so it can be resolved. Councilmember Mavity stated support to remove this assessment, noting that the pictures show this is not a quality product. If the city is responsible for it, it needs to be made right. She felt this was not the first time a street contractor has left a bit of a mess and suggested that the city require more of its contractors and hold them accountable. It was moved by Councilmember Lindberg, seconded by Councilmember Brausen, to adopt Resolution No. 17-161 to assess delinquent water, sewer; storm water, refuse, abating grass/weed cutting, tree removal/injection, false alarm fees and other miscellaneous charges, except the assessment pertaining Mr. Hahn, and to direct staff to meet with Councilmember Lindberg and Mr. Hahn to find a reasonable resolution. The motion passed 6-0 (Councilmember Miller absent). 7. Requests, Petitions, and Communications from the Public — None 8. Resolutions, Ordinances, Motions and Discussion Items 8a. Proposed Redevelopment — 9808 and 9920 Wayzata Blvd. (former Santorini's site). Resolution No. 17-162 and Resolution No. 17-163 Ms. Kramer presented the staff report regarding the proposal of William Stoddard, CEO of Stoddard Companies, to redevelop the former Santorini's property into a 149 -unit City Council Meeting -5- October 16, 2017 apartment building and a 112 -key limited service hotel. The apartment building would be located on the west side of the property and the hotel on the east side, with surface parking lots located between the buildings and to the east of the hotel. It was noted that the council had discussed and favorably reviewed this proposal at its September 25, 2017, study session. Ms. Kramer stated that the property is guided and zoned Office, and the Planned Unit Development (PUD) application includes requests for reduced setbacks, increased residential density on the apartment lot, and reduced parking for the hotel. She described the mix of units and displayed slides of the floor plan, exterior elevations, proposed hotel, and hotel floor plans. The maximum residential density allowed for multiple -family residential use in the Office district is 50 units per acre, or more with a PUD. The PUD would be 3.13 acres, which would allow up to 156 units, and the requested 149 -unit apartment building fits within this limit. The PUD would be split into two lots. The density of the residential lot alone would be 89 units per acre; however, the overall density of the site would be 47.9 units per acre, and the PUD would prohibit residential uses on the hotel lot. Ms. Kramer described the proposed building facade architectural materials, noting they meet code requirements, and a condition for final project approval would require submittal of those building material samples. She reviewed the zoning code requirements for building wall deviations. The north elevation exceeds the maximum height to width ratio in the code, but vertical privacy walls break up the fagade, and this elevation is not visible from Wayzata Boulevard. Staff recommends approval of the deviation requirement for the north wall only. Ms. Kramer presented staff s preliminary plat analysis and displayed slides of the utility easements; calculation of park dedication; PUD analysis; existing zoning of Office with General Commercial to the west; and the proposed PUD zoning district to allow reduced setbacks and increased density. She then reviewed zoning compliance factors. Ms. Kramer reported that two neighbors attended the June 14, 2017, neighborhood meeting and both expressed strong support for the project. She reviewed the consideration by the Planning Commission's two public hearing sessions and its recommendation for approval of the applications with conditions. Ms. Kramer reviewed additional details of the proposal, including relocation of utility lines; landscaping plans; shortage of designed outdoor recreation area (DORA); and staff findings. She advised of staff s requests for additional details as follows: • Provide further revisions and details to the utility, drainage, grading, and stormwater plans. • Confirm that all mechanical equipment shall be screened per the zoning ordinance. • Submit plan for alternative landscaping to meet the shortfall in the required landscaping. • Provide a revised DORA plan that meets all requirements per the zoning code. • Provide details explaining how the development will address soil correction issues. • Provide details for meeting code requirements regarding collecting garbage, recycling, and organics. • Provide proof of parking for the remaining 12 bicycle parking spaces on the residential lot City Council Meeting -6- October 16, 2017 • Amend the trash rooms' design to provide three chutes to accommodate garbage, organics recycling, and non-organic recycling. Ms. Kramer stated that staff recommends approval with conditions Councilmember Sanger asked whether the applicant proposes to provide charging stations on site for electric vehicles. Ms. Kramer stated that the applicant is willing to provide them or lay the infrastructure so charging stations can be installed at a later date. Councilmember Sanger stated that she hopes it will happen and supports revising the City Code to make it a requirement for future projects. Councilmember Sanger asked about the unit mix of proposed apartments and how large the apartments are. Mr. Kramer stated that the unit square footage is included on the floor plans. She displayed a slide showing the mix of unit type, number of bedrooms, and unit count. Councilmember Sanger pointed out that one -bedrooms make up half of the count. She thinks this is too many because the city already has a lot of tiny apartments but not enough units for people who want to downsize. She stated that she is not comfortable with this apartment mix. Councilmember Brausen stated that he has had a lot of meetings with staff about this site, which has been undeveloped for several years. He also attended the community meeting where the residents who showed up were excited about the project. Councilmember Brausen felt this was the most ambitious proposal the council has seen for this site. In addition, the applicant has a reputation for constructing high-quality buildings, and this proposal strikes him as the highest and best use of the site, creating more housing, affordable housing, and hotel units at a highly visible location. Councilmember Brausen stated that the staff report noted parking requirements were slightly short of code, but this is a limited service hotel, geared towards the business traveler. There is no restaurant or services that draw traffic, so he believed it can easily handle parking needs. He noted that the proposal includes over 160 bicycle parking spaces, which is consistent with policy. While the landscaping is a few trees short, it still results in planting over 150 trees, over 1,200 shrubs, and 600 perennials. Councilmember Brausen stated that he agrees with staff recommendation related to landscaping. Councilmember Brausen stated that the proposal does not have the required dedicated DORA for a hotel, although 44% of the residential is DORA, and 26% of DORA on the site overall. He supported staffs recommendation to increase hotel DORA with a possible rooftop feature, noting this site has close and easy access to Shelard Park. In addition, the applicant will pay over $289,000 in park dedication and $33,000 in trail dedication fees, including biking and walking access to Shelard Park and the trail system. Councilmember Brausen stated that with 149 housing units, including required affordable units, and 112 hotel beds, he fully supports this proposal. It was moved by Councilmember Brausen seconded by Councilmember Lindberg, to adopt Resolution No. 17-162 approving a Preliminary Plat and adopt Resolution No. 17-163 approving Preliminary Planned Unit Development, subject to conditions. Councilmember Mavity stated that she likes the mix of units, as some are two -bedrooms and townhomes, which are not often developed and a plus to provide more choices to our residents. She noted that the vacancy rate for three bedrooms is in the 24% range. Councilmember Mavity stated that this project will create up to 27 affordable units for hard-working families. The units are distributed evenly and proportional to the mix, which is a win. She noted that the council has raised questions about the applicant not meeting requirements, such as DORA, even though the whole site meets the DORA City Council Meeting -7- October 16, 2017 requirement, so she support staff's amendment. She agreed with the comment on car charging stations and wanted to make sure there is space for organics recycling, as well. ( Councilmember Mavity asked staff to make sure glass fronts are activated and interactive, not papered over. Councilmember Hallfin stated that he appreciates what the developer is doing as this site has been an eyesore for some time. He also appreciates staff's suggestion on the DORA commitment and looks forward to seeing something better before second reading. Mayor Spano agreed it (the DORA plan) could be a bit better. The motion passes' 5-1 (Councilmember Sanger opposed; Councilmember Miller absent). 9. Communications Mr. Harmening announced the following: • October 20-21, 2017, 34`x' annual Halloween Party at Eastwood Nature Center from 6:30-9 p.m. • October 24, 2017, Metropolitan Airports Commission open house at the Rec Center to listen to resident concerns. • October 28, 2017, Drug Take Back Day at the police station from 10 a.m. to 2 p.m. Councilmember Sanger welcomed the Benilde-St. Margaret's civics class who attended the council meeting and asked for their observations. A Benilde-St. Margaret's student asked what would happen should the council not approve the apartment plan. Mayor Spano explained that if it was not approved, concerns would have been articulated and staff directed to meet with the applicant to see if those concerns could be resolved. He noted that while the project may not include everything the council wants, there needs to be a balance. Councilmember Brausen stated that this property has been vacant for nine years. Other proposals were presented, like a parking lot, but the council wants the best use for this property. The student asked whether the council was confident the plan will work. Mayor Spano stated that the council is confident staff can work out the issues between tonight's first reading and the second reading. If not, then the council may say no. Councilmember Brausen explained that this property is under private ownership, so it can be developed in the way it is zoned if it meets code. Mayor Spano asked students what constitutional right was exercised tonight. A student answered the first amendment. Mayor Spano stated that is correct, as well as a petition for redress of grievances, which was raised by the resident about his driveway assessment. 10. Adjournment The meeting adjourned at 8:28 p.m. i Melis Kennedy, City Clerk