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HomeMy WebLinkAbout2003-09-17 MINUTESREGULAR MEETING COTTAGE GROVE CITY COUNCIL September 17, 2003 OPEN FORUM — 7:15 p.m. Open forum provides a person an opportunity to inform the Council of a problem or to request information related to City business not scheduled for Council action and on the Agenda. Mayor Pro Tern Kohls encouraged persons to limit their remarks to two (2) minutes per issue. Present: Mayor Pro Tern Cheryl Kohls Council Member Mark Grossklaus Council Member Pat Rice Council Member Jim Wolcott Also Present: Ryan Schroeder, City Administrator Ron Hedberg, Finance Director Kim Lindquist, Community Development Director Tom Thompson, Bonestroo, Rosene, Anderlik and Associates John Mickelson, Public Safety Director Les Burshten, Public Works Director Corrine Thomson, Kennedy & Graven Not Present: Mayor Sandy Shiely Gary Kjellberg, 7389 Inman Avenue South, thanked Community Development Director Kim Lindquist for all that she has done for the City of Cottage Grove. She has always had Cottage Grove's best interest in mind and she has always worked in the most professional of fashions. He stated that she would be missed by all and wished her well in her new position. Mayor Pro Tern Kohls confirmed that this would be Community Development Director Lindquist's last City Council meeting. She formally announced that Lindquist has accepted a new position with the City of Rosemount. Kohls stated that Lindquist always took her job very seriously and that she has been a very professional and thorough member of the City Staff. On behalf of the City and City Council Kohls wished her well in her new position stating everyone would miss her. CALL TO ORDER The City Council of the City of Cottage Grove, Washington County, Minnesota held a regular meeting on Wednesday, September 17, 2003, at the Cottage Grove City Hall, 7516 80 Street South. Mayor Pro Tern Kohls called the meeting to order at 7:30 p.m. Regular Meeting — September 17, 2003 Cottage Grove City Council Page 2 ROLL CALL Present: Mayor Pro Tern Cheryl Kohls Council Member Mark Grossklaus Council Member Pat Rice Council Member Jim Wolcott Also Present: Ryan Schroeder, City Administrator Ron Hedberg, Finance Director Kim Lindquist, Community Development Director Tom Thompson, Bonestroo, Rosene, Anderlik and Associates John Mickelson, Public Safety Director Les Burshten, Public Works Director Corrine Thomson, Kennedy & Graven Not Present: Mayor Sandy Shiely Mayor Pro Tern Kohls presided over the meeting. ADOPTION OF AGENDA MOTION BY WOLCOTT, SECONDED BY RICE, TO APPROVE THE AGENDA AS PRESENTED. MOTION CARRIED 4 -0. PRESENTATIONS NONE APPROVAL OF MINUTES A. July 23, 2003 Special Meeting. Mayor Pro Tern Kohls stated that the minutes stand approved as presented. B. August 20, 2003 Regular Meeting Mayor Pro Tern Kohis stated that the minutes stand approved as presented. CONSENT CALENDAR Council Member Wolcott asked to pull Item 4.1, Authorizing TKDA to Begin Work on Well Vulnerability Assessment for further discussion. He stated that after reviewing the two bids he is having a difficult time understanding the bids and how they were compared. He explained that one of the bids includes four pages of detail while the other is one page of Regular Meeting — September 17, 2003 Cottage Grove City Council Page 3 general detail with respect to what services they would provide. He asked that the detail be further clarified with respect to what the City wants and needs and they should better define the scope of the request before placing it out for bids. He noted that BRAA provided a very detailed description of the services they would provide while TKDA was very vague. He stated that he would like the Public Works Department to determine what the City wants done and then go out for bids. Public Works Director Burshten explained that this is a federally mandated, unfunded issue and that it was very vague from the beginning with respect to what needs to be done. He stated that the federal government issued vague instructions with the request. He noted that several of the metro Cities are already in the process of working through this request and that going through the bid process again would cause some slight delay. Council Member Wolcott acknowledged his concerns stating that he would feel better if they would provide the detail. He explained that it is difficult to compare the two bids without knowing what will be accomplished within the study. Public Works Director Burshten explained that the approach they chose to take was to have the firms tell the City what should be done within the study. City Administrator Schroeder explained that Item 4.1. is a requirement under the Public Health Security and BioTerriorism Preparedness and Response Act of 2003 which requires a comprehensive view of the safety and security of drinking water systems. He stated that the Act amends the Safe Drinking Water Act and specifies actions community water systems and the EPA must take to improve the security of the nation's drinking water infrastructure. He stated that the Public Works Department requested a quotation for a well vulnerability assessment where the vendor would also make recommendations for reducing exposure to risks that have been presented. He stated that this was discussed at the 2004 budget workshop and that because of the EPA's timetable and other projects, Staff would like to begin work this fall. He stated that there are items within the document that the City does not have to do and there are other items that do have to be completed. He stated that the study was done to determine what items the City did need to address. Council Member Wolcott stated that the City should determine and clarify what should be done. He stated that it is very difficult to determine what needs to be done and what each firm plans to do when the two bids are so different. Mayor Pro Tern Kohls asked if it would help if TKDA provided a more detailed outline of what they plan to do within the $8,000. Council Member Wolcott stated he would feel much more comfortable with more detail from TKDA. Mayor Pro Tern Kohls asked Public Works Director Burshten to go back and ask TKDA to clarify the services they plan to provide within their bid. MOTION BY WOLCOTT, SECONDED BY KOHLS, TO TABLE ITEM 4.1. FOR FURTHER RESEARCH. MOTION CARRIED 4 -0. Regular Meeting — September 17, 2003 Cottage Grove City Council Page 4 Council Member Grossklaus requested that Item 4.G, Proposed Hiring Process and Timeline for the Community Development Director Position be pulled for further discussion. Grossklaus explained that his concern is with respect to the hiring timeline. He expressed concerns stating that the Community Development Department is very busy and asked if there would be a way to speed up the hiring process. City Administrator Schroeder explained that the first draft of the process and timeline did not allow for any faults in the process. He stated that he discussed the timeline and workload with the planners adding that they felt that this was a reasonable timeframe. Schroeder assured the Council that the individual who would be in an acting role has considerable experience and he felt that this could be accomplished in a three to four month timeframe. He assured the Council that they would take every opportunity available to move quickly through the process. Mayor Pro Tern Kohls requested that Item 4.H, Almar Village Sign Covenants be pulled for further discussion. Kohls stated that at the last meeting, she was left with the impression that they had agreed to a darker background with lighter lettering. She expressed concerns stating that when she received the package it was the complete opposite of what they discussed. She explained that she requested that the item be pulled to determine if Council would want to discuss this change or find out if everyone is okay with the white background. She stated that she received an email today showing examples of the signage using a dark background. She provided samples for Council review. She clarified that the background color is not actually white but more of a cream or tan color. She asked if Council had any additional comments or concerns. Council Member Wolcott agreed that what they discussed was a darker background. City Administrator Schroeder stated that it was his understanding that the signs are now on board, all with the blue background, which is what was expected. He stated that the tenants are willing to go with whatever the Council decides. Mayor Pro Tern Kohls clarified that what the City Council wants is a darker background. She stated that she also spoke with Mayor Shiely regarding her concerns and that she was also in agreement with respect to the darker background. She suggested changing the covenant to include `darker background with lighter letters'. Community Development Director Lindquist stated that the property owners and tenants are okay with the blue background adding that she is not sure about the letter colors. She stated that it was her understand that in the discussion two weeks ago they decided that they did not want to restrict the colors for lettering. MOTION BY WOLCOTT, SECONDED BY RICE, TO: A. ACCEPT AND PLACE ON FILE THE FOLLOWING MEETING MINUTES: i. ECONOMIC DEVELOPMENT AUTHORITY OF AUGUST 12, 2003. ii. PUBLIC WORKS COMMISSION OF AUGUST 11, 2003. Regular Meeting — September 17, 2003 Cottage Grove City Council Page 5 B. ADOPT RESOLUTION NO. 03 -184 GRANTING A VARIANCE FROM TITLE 11 -9E- 5A, DEVELOPMENT STANDARDS IN R -4 ZONING DISTRICT, TO ALLOW CONSTRUCTION OF A SIX -FOOT WIDE FRONT PORCH 24 FEET FROM THE FRONT PROPERTY LINE WHEN A 30 -FOOT FRONT YARD SETBACK IS REQUIRED AND 2 FEET FROM THE SIDE PROPERTY LINE WHEN 7.5 FEET IS REQUIRED AT 7595 LAMAR AVENUE SOUTH. C. APPROVE PAYMENT OF $32,333 FROM THE PARK DEDICATION FUND FOR THE PATHWAY FROM ALMAR VILLAGE TO JOLIET AVENUE. D. ADOPT RESOLUTION NO. 03 -185 DECLARING COSTS ON PROPOSED ASSESSMENTS FOR THE PINE SUMMIT 2ND ADDITION STREET AND UTILITY IMPROVEMENT PROJECT. ADOPT RESOLUTION NO. 03 -186 CALLING FOR HEARING ON PROPOSED ASSESSMENTS FOR THE PINE SUMMIT 2ND ADDITION STREET AND UTILITY IMPROVEMENT PROJECT. ADOPT RESOLUTION NO. 03 -187 DECLARING COSTS ON PROPOSED ASSESSMENTS FOR THE PINE SUMMIT 3RD ADDITION STREET AND UTILITY IMPROVEMENT PROJECT. ADOPT RESOLUTION NO. 03 -188 CALLING FOR HEARING ON PROPOSED ASSESSMENTS FOR THE PINE SUMMIT 3RD ADDITION STREET AND UTILITY IMPROVEMENT PROJECT. ADOPT RESOLUTION NO. 03 -189 DECLARING COSTS ON PROPOSED ASSESSMENTS FOR THE HIDDEN VALLEY 10TH ADDITION STREET AND UTILITY IMPROVEMENT PROJECT. ADOPT RESOLUTION NO. 03 -190 CALLING FOR HEARING ON PROPOSED ASSESSMENTS FOR THE HIDDEN VALLEY 10TH ADDITION STREET AND UTILITY IMPROVEMENT PROJECT. ADOPT RESOLUTION NO. 03 -191 DECLARING COSTS ON PROPOSED ASSESSMENTS FOR THE TIMBER RIDGE 1 ST ADDITION STREET AND UTILITY IMPROVEMENT PROJECT. ADOPT RESOLUTION NO. 03 -192 CALLING FOR HEARING ON PROPOSED ASSESSMENTS FOR THE TIMBER RIDGE 1 ST ADDITION STREET AND UTILITY IMPROVEMENT PROJECT. ADOPT RESOLUTION NO. 03 -193 DECLARING COSTS ON PROPOSED ASSESSMENTS FOR THE PINE ARBOR 1 ST ADDITION STREET AND UTILITY IMPROVEMENT PROJECT. ADOPT RESOLUTION NO. 03 -194 CALLING FOR HEARING ON PROPOSED ASSESSMENTS FOR THE PINE ARBOR 1 ST ADDITION STREET AND UTILITY IMPROVEMENT PROJECT. ADOPT RESOLUTION NO. 03 -195 DECLARING COSTS ON PROPOSED ASSESSMENTS FOR THE MISSISSIPPI DUNES - MULTI - FAMILY STREET AND UTILITY IMPROVEMENT PROJECT. ADOPT RESOLUTION NO. 03 -196 CALLING FOR HEARING ON PROPOSED ASSESSMENTS FOR THE MISSISSIPPI DUNES - MULTI - FAMILY STREET AND UTILITY IMPROVEMENT PROJECT. Regular Meeting — September 17, 2003 Cottage Grove City Council Page 6 ADOPT RESOLUTION NO. 03 -197 DECLARING COSTS ON PROPOSED ASSESSMENTS FOR THE MISSISSIPPI DUNES ESTATES STREET AND UTILITY IMPROVEMENT PROJECT. ADOPT RESOLUTION NO. 03 -198 CALLING FOR HEARING ON PROPOSED ASSESSMENTS FOR THE MISSISSIPPI DUNES ESTATES STREET AND UTILITY IMPROVEMENT PROJECT. ADOPT RESOLUTION NO. 03 -199 DECLARING COSTS ON PROPOSED ASSESSMENTS FOR THE ROSE OF SHARON CHURCH STREET AND UTILITY IMPROVEMENT PROJECT. ADOPT RESOLUTION NO. 03 -200 CALLING FOR HEARING ON PROPOSED ASSESSMENTS FOR THE ROSE OF SHARON CHURCH STREET AND UTILITY IMPROVEMENT PROJECT. ADOPT RESOLUTION NO. 03 -201 DECLARING COSTS ON PROPOSED ASSESSMENTS FOR THE CARLY'S 1 ST ADDITION STREET AND UTILITY IMPROVEMENT PROJECT. ADOPT RESOLUTION NO. 03 -202 CALLING FOR HEARING ON PROPOSED ASSESSMENTS FOR THE CARLY'S 1 ST ADDITION STREET AND UTILITY IMPROVEMENT PROJECT. ADOPT RESOLUTION NO. 03 -203 DECLARING COSTS ON PROPOSED ASSESSMENTS FOR THE ALMAR VILLAGE STREET AND UTILITY IMPROVEMENT PROJECT. ADOPT RESOLUTION NO. 03 -204 CALLING FOR HEARING ON PROPOSED ASSESSMENTS FOR THE ALMAR VILLAGE STREET AND UTILITY IMPROVEMENT PROJECT. E. ADOPT RESOLUTION NO. 03 -205 DECLARING COSTS TO BE ASSESSED AND ORDERING PREPARATION OF PROPOSED ASSESSMENT ROLL FOR REMOVAL OF PUBLIC SAFETY HAZARDS FROM PRIVATE PROPERTY LOCATED AT 7715 IVERSON; ADOPT RESOLUTION NO. 03 -206 CALLING FOR A HEARING ON PROPOSED ASSESSMENTS FOR THE REMOVAL OF PUBLIC SAFETY HAZARDS FROM PRIVATE PROPERTY LOCATED AT 7715 IVERSON. F. APPROVE MNDOT SUPPLEMENTAL AGREEMENT NO. 3 FOR THE ADDITIONAL WORK NEEDED FOR THE HARDWOOD AVENUE PROJECT. G. APPROVE THE PROPOSED HIRING PROCESS AND TIMELINE FOR THE COMMUNITY DEVELOPMENT DIRECTOR POSITION. H. RECEIVE INFORMATION ON SIGN COVENANTS FOR ALMAR VILLAGE. I. ITEM TABLED FOR FURTHER RESEARCH. J. ADOPT RESOLUTION NO. 03 -207 PROVIDING FOR THE ESTABLISHMENT OF A REAL PROPERTY FIRE LOSS ESCROW ACCOUNT AND NOTIFICATION TO THE COMMISSIONER OF COMMERCE THAT THE CITY HAS ESTABLISHED A FIRE LOSS ESCROW ACCOUNT PURSUANT TO THE AUTHORITY OF MINN. STAT. 65A.50. MOTION CARRIED 4 -0. Regular Meeting — September 17, 2003 Cottage Grove City Council Page 7 Mayor Pro Tern Kohls stated that if anyone is present for issues on the Consent Calendar all have been passed with the exception of 4.1., which was tabled. RESPONSE TO PREVIOUSLY RAISED OPEN FORUM ISSUES NONE PUBLIC HEARINGS A. Consider a Resolution and Interim Ordinance Establishing a Moratorium on Development of Currency Exchanges within the City. Consider a Resolution Denying Local Approval of the Pending Application for a Currency Exchange License for In Concert Located at 7280 East Point Douglas Road Based on the Moratorium Established by the Approval of the Aforementioned Resolution and Ordinance. City Administrator Schroeder stated that the Minnesota Department of Commerce recently received an application from Tina Luymes, the owner of In Concert, for a currency exchange license. He explained that Ms. Luymes wishes to operate a currency exchange business at In Concert, located at 7280 East Point Douglas Road. He further explained that the applicant needs this license in order to cash payroll checks for their employees and that is Ms. Luymes' desired purpose for the license. Schroeder stated that upon issuance, the applicant would also have the opportunity to offer this service to the general public. He noted that Public Safety Director Mickelson has a few concerns about having this operation in Cottage Grove. Schroeder explained that Public Safety Director Mickelson is concerned because of the higher potential for robbery and the prospect of people trying to cash bad checks at the store, which would add more investigation time to handle forgery cases. He noted that most check cashing stores do a good job of not accepting questionable checks. Schroeder stated that In Concert is not violating any City ordinances or zoning requirements by operating a currency exchange at their current location. He reviewed the proposed fee list for cashing checks noting that the list was included for Council review. He stated that Robin Brown, Minnesota Department of Commerce strongly recommends that City Council make a decision on whether or not In Concert receives a Currency Exchange License. He stated that Staff would then pass on the Council's decision to the Minnesota Department of Commerce. He stated that the City Attorney recommends that Council take three steps to allow staff to look into creating an ordinance to establish standards for local review and zoning currency exchange licenses. He reviewed the steps with Council. Mayor Pro Tern Kohls opened the Public Hearing at 7:52 p.m. Alan Luymes, husband to Ms. Tina Luymes, explained that several years ago his wife adopted a provision to cash payroll checks for local teens that do not have bank accounts and who are working for local businesses. He further explained that this has been a large part of her business for the past 15 years adding that she has been through audits with both Regular Meeting — September 17, 2003 Cottage Grove City Council Page 8 the banks and the IRS, without issue. He stated that recently the State became involved and determined that she should be licensed to provide this service. He clarified that she does not have any foreign currency and reviewed the type of clients she services. He provided Council with a copy of the list of individuals they have on file to cash checks stating that if this service is removed from her business that all of the individuals on this list would have to go outside of Cottage Grove to cash their checks. He clarified that this is the only service she provides and that it does not include money orders. Mr. Luymes explained that if they place a moratorium on this service that it would literally put her out of business as this function has become a major part of her business. Council Member Rice expressed concerns stating that the City has been trying to upgrade this shopping center for years and that he does not want a check cashing service in this center. He explained that based on the information provided in their packets it was his understanding that this service was only provided to In Concert employees, he expressed concerns regarding the number of people on this list, and the possibility of seeing a check cashing sign that would look very gaudy. Mr. Luymes assured the Council that they would not be putting up any signs identifying them as a currency exchange or check cashing service. He agreed that this condition should be included as a stipulation of approval. He emphasized that they do not want to open this service to the general public, only those already on the list. He stated that it is his hope that the Council supports local businesses like this and does not decide to put them out of business. City Administrator Schroeder clarified that the timeframe within the resolution to complete the study would be one year. He noted that the City Council response back to the State is due within a few days. He explained that if Council should decide to delay, the result could be that the Department of Commerce would then issue the license and the City would have no recourse. Council Member Wolcott asked what the license would allow. City Attorney Thomson explained that the license would allow currency exchange. She further explained that she is not very familiar with all of the requirements and rights that come with this kind of license and would have to research the issues further. Ms. Luymes stated that the IRS told her that she needed to have this license. She explained that this was determined when the IRS did an annual audit. Luymes stated that once she discovered that this was required in order to provide the service, she immediately applied for the license. She assured the Council that the license would not affect or change the service she has provided for the last fifteen years. She stated that she would not have foreign currency nor would she advertise or place a sign in her window stating that her business cashes checks. She clarified that all she is trying to do is conform to the law. Regular Meeting —September 17, 2003 Cottage Grove City Council Page 9 Council Member Rice asked Mrs. Luymes if they receive the license would they be able to move money orders or wire money. Mr. Luymes stated that she could adding that at one time she did try money orders and did not make any money providing the service so she stopped offering them. She clarified that she does not provide or cash money orders and that she does not plan to include that as a part of her service. Council Member Rice expressed concerns stating that a lot could change if the licensing allows the action. Mr. Luymes explained that the check cashing service is a secondary part of the business and that the service is provided to help supplement their income and cover the rent. Council Member Grossklaus asked what their volume is for cashing checks. Mr. Luymes stated that approximately $150,000 goes through the banks each week. He stated that the IRS has audited the business and found it to be in conformance. Ms. Luymes assured the Council that she has no intention of putting up a sign that advertises check cashing. She acknowledged the Council's concerns noting that she has never had any problems. Council Member Grossklaus expressed concerns stating that this would become public and clarified that his true concern is more for her safety and the safety of her customers. Mrs. Luymes agreed stating that she does have an alarm system installed. Mr. Luymes stated that the pickups occur at different times with no set schedule. He explained that they set it up this way to avoid creating a pattern adding that they do not keep large amounts of money on site at any time. Mayor Pro Tern Kohls asked Public Safety Director Mickelson for his comments regarding public safety. Public Safety Director Mickelson expressed deep concerns stating that they should not be discussing money and alarm system information on public television. He stated that he does not support the currency exchange centers for a number reasons. At any time she could decide to turn over bad checks to his department for further investigation and prosecution, which would create an additional workload. He stated that he was not aware that this service had been going on for fifteen years and agreed that they have not had any problems with Mrs. Luymes' business. He explained that his biggest concern was more for Mrs. Luymes' safety than for the business. Mrs. Luymes stated that she does have a large number of people who utilize her service to cash checks and that her employees are trained for a variety of situations. She explained that if her request for license is denied that she would have to close her doors and go out of business. She stated that she has a two -year lease agreement that would still have to be paid adding that the denial would not only hurt her business but those who come to cash their payroll checks. Public Safety Director Mickelson restated that his concern is more for Mrs. Luymes' safety, not with what she is doing. Regular Meeting — September 17, 2003 Cottage Grove City Council Page 10 City Administrator Schroeder reviewed the options available for Council consideration stating that they can, as a part of the motion, forward this on to the Department of Commerce with their concerns attached. He stated that the license is not issued with conditions. Council Member Wolcott asked what would happen if the Council takes no action, and because Council has not taken action, the license is approved and the City creates an ordinance, would they have to follow the ordinance implemented or would they be grandfathered. City Attorney Thomson stated that for those cities that have currency exchanges, the key issue is location and what transactions take place. She clarified that if use of the service expands and it becomes a full currency exchange, the business would be subject to any new ordinances. She stated that the license has to be renewed annually and sometimes cities do put approval processes in place at the time of renewal. She reviewed the Statutes with Council. She explained that if the City Council goes through the process and decides not to approve the application, the business would not get the license. She further explained that if the Council does nothing, approval is assumed and the license would be issued. She suggested determining what reasonable standards are and include in the study process so that anyone coming before City Council on this issue would be treated the same. Thomson offered to review the standards for approval and the zoning with recommendations to Council. She stated that another option Council could consider, if they are so inclined, is to approve the application and provide the approval on the condition that the applicant enter into an agreement with the City that would set out the limitations discussed. She stated that it could include the type of currency exchanged, the type of signage that would be allowed or not allowed and it would put in place security measures as agreed upon by the Public Safety Director. She stated that this would allow the Public Safety Director to meet with the business owners to develop something that would be comfortable for all parties. She stated that Council could place a moratorium on any future businesses and move forward with the study. Mr. Luymes stated that there is not a cash checking facility within a half a mile from their location noting that if the license is not approved it would hurt a large group of young people and individuals who are not able to open a bank account. Council Member Wolcott asked how often they would have to renew the license and the fee scale. Mr. Luymes clarified that the license is renewed on an annual basis and the initial cost is $1,500 and $500 annually on an ongoing basis. Mayor Pro Tem Kohls asked if the license could move with the business. City Attorney Thomson stated that she would have to review the statute to determine if the license is transferable by state law. Mayor Pro Tern Kohls closed Public Hearing at 8:20 p.m Regular Meeting —September 17, 2003 Cottage Grove City Council Page 11 Council Member Rice asked what would happen if the Council decides to deny the application and they continue to cash checks. Mrs. Luymes assured the Council that if her application is denied that she would have to stop cashing checks. She explained that if she did not stop that she would end up in trouble with the IRS and the State. Council Member Wolcott stated that he would like to see an inclusion that the license is not transferable and that the business must comply with any future ordinances developed by staff. He stated that if they are willing to agree to these stipulations then he would be willing to go along with the request. Mayor Pro Tern Kohls and Council Member Grossklaus stated that they would not be agreeable to this form of licensing if a new business comes into town. MOTION BY WOLCOTT, SECONDED BY RICE, TO ADOPT RESOLUTION NO. 03 -208 RECOMMENDING APPROVAL OF THE CURRENCY EXCHANGE LICENSE CONTINGENT UPON A SIGNED AGREEMENT THAT THE LICENSE WOULD NOT BE TRANSFERABLE TO A NEW OWNER AND THAT THE CURRENT OWNER MUST COMPLY WITH ANY FUTURE ORDINANCES DEVELOPED BY STAFF, AGREE TO NO SIGNAGE, AND IMPLEMENT SECURITY MEASURES AS RECOMMENDED BY THE POLICE DEPARTMENT. MOTION CARRIED 4 -0. MOTION BY RICE SECONDED BY GROSSKLAUS, TO ADOPT RESOLUTION NO. 03 -209 ESTABLISHING A MORATORIUM ON DEVELOPMENT OF CURRENCY EXCHANGES WITHIN THE CITY EFFECTIVE OCTOBER 1, 2003. MOTION CARRIED 4 -0. MOTION BY WOLCOTT, SECONDED BY GROSSKLAUS, TO ADOPT ORDINANCE NO. 743 APPROVING THE INTERIM ORDINANCE TO RESTRICT THE DEVELOPMENT OF CURRENCY EXCHANGES WITHIN THE CITY. MOTION CARRIED 4 -0. BID AWARDS A. Consider Awarding the Bid for the Pine Summit 6th Addition Utility. Street and Street Lightinq Improvements to Danner Inc. in the Amount of $364,724.92. MOTION BY WOLCOTT, SECONDED BY RICE, TO ADOPT RESOLUTION NO. 03 -210 AWARDING BID FOR THE PINE SUMMIT 6 TH ADDITION UTILITY, STREET, AND STREET LIGHTING IMPROVEMENT PROJECT. MOTION CARRIED 4 -0. B. Consider Awarding the Bid for the Pine Summit 7` Addition Utility. Street and Street Lightinq Improvements to Barbarossa and Sons. Inc. in the Amount of $740,231.75. MOTION BY RICE, SECONDED BY GROSSKLAUS, TO ADOPT RESOLUTION NO. 03 -211 AWARDING BID FOR THE PINE SUMMIT 7 TH ADDITION UTILITY, STREET AND STREET LIGHTING IMPROVEMENT PROJECT. MOTION CARRIED 4 -0. Regular Meeting —September 17, 2003 Cottage Grove City Council Page 12 UNFINISHED AND NEW BUSINESS A. Consider Adopting Four Resolutions: The First Two Resolutions are to Declare Costs and to Call the Public Hearing for the Thompson Grove Pavement Management Reconstruction Proiecfi The Last Two Resolutions are to Declare Costs and to Call the Public Hearing for the Thompson Grove Pavement Management Mill and Overlay Project. Finance Director Hedberg stated that the Council should consider four resolutions relating to adopting the assessment rolls for the Thompson Grove Pavement Management Project. He reviewed the resolutions stating that the first two are to declare the costs and to call the public hearing for the Thompson Grove Pavement Management Reconstruction Project and the last two are to declare costs and call the public hearing for the Thompson Grove Pavement Management Mill and Overlay Project. He reviewed the amounts included on the assessment roll noting that they follow the City's past practice of setting the assessment amounts. He explained that the residential assessments are set at 2% for the reconstruction area and 1.25% in the mill and overlay area. He further explained that the commercial assessments are based on a front foot basis, capped at 3% of the market value for developed properties. He stated that the 2003 assessments are included on two assessment rolls. Mayor Pro Tern Kohls asked how many property owners would be assessed. Finance Director Hedberg stated that approximately 580 property owners would be assessed. He noted that 650 were assessed during the first phase. MOTION BY WOLCOTT, SECONDED BY GROSSKLAUS, TO ADOPT RESOLUTION NO. 03 -212 DECLARING COSTS TO BE ASSESSED AND ORDERING PREPARATION OF PROPOSED ASSESSMENT ROLL FOR THE THOMPSON GROVE PAVEMENT MANAGEMENT RECONSTRUCTION PROJECT. MOTION CARRIED 4 -0. MOTION BY WOLCOTT, SECONDED BY RICE, TO ADOPT RESOLUTION NO. 03 -213 CALLING FOR A HEARING ON PROPOSED ASSESSMENTS FOR THE THOMPSON GROVE 2003 PAVEMENT MANAGEMENT RECONSTRUCTION PROJECT FOR OCTOBER 15, 2003. MOTION CARRIED 4 -0. MOTION BY WOLCOTT, SECONDED BY RICE, TO ADOPT RESOLUTION NO. 03 -214 DECLARING COSTS TO BE ASSESSED AND ORDERING PREPARATION OF PROPOSED ASSESSMENT ROLL FOR THE THOMPSON GROVE PAVEMENT MANAGEMENT MILL AND OVERLAY PROJECT. MOTION CARRIED 4 -0. MOTION BY RICE, SECONDED BY WOLCOTT, TO ADOPT RESOLUTION NO. 03 -215 CALLING FOR A HEARING ON PROPOSED ASSESSMENTS FOR THE THOMPSON Regular Meeting — September 17, 2003 Cottage Grove City Council Page 13 GROVE 2003 PAVEMENT MANAGEMENT MILL AND OVERLAY PROJECT ON OCTOBER 15, 2003. MOTION CARRIED 4 -0. B. Consider Adopting the Resolution Declaring Costs to be Assessed and Ordering the Preparation of the Assessment Roll for the County Road 13 Street Proiect; Consider Adopting the Resolution Calling for the Hearing on the Proposed Assessments for the County Road 13 Street Proiect to be held October 15, 2003. Finance Director Hedberg stated that in May of this year the City entered into a cooperative agreement with Washington County for the reconstruction of Hinton Avenue and portions of 65 Street. He stated that during the public hearing for the project, staff indicated that there would be some assessments levied for the project. He explained that the basis for the assessments is that the property will realize an increase in value due to the new improved road. He stated that the properties assessed would be those lands located within the project scope, both along Hinton Avenue and 65 Street. The project is being completed in two phases and has been separated into two projects. Hedberg stated that the action requested includes declaring costs to be assessed for this project and to direct staff to prepare assessment notices to be sent to benefiting property owners and published for the portion of the project including 65 Street and Hinton Avenue, south of 65 Street. He noted that in addition to sending the notices of the proposed assessment Staff would also send the deferment agreement and would offer to meet with each property owner to go through and explain the agreement. He stated that the notices that would be sent would include the total amount of the assessment and if the deferment agreement is signed then the amount assessed would be lowered. He reviewed the cost of the first portion of the project with Council noting that the cost of right -of -way included could be higher pending results of final negotiations and condemnation proceedings. He reviewed the proposed assessment roll for the Hinton Tower street project for the properties abutting Hinton south of 65 with Council noting the assessment roll follows the same methodology presented at the project hearing in May. He reviewed the formulas used to determine the preliminary assessment roll with Council. He stated that the assessment process would be consistent with that familiar to Council and that a formal assessment hearing would be held at the end of the project. Council Member Grossklaus expressed concerns stating that the project is not completed yet. Finance Director Hedberg stated that the Hinton Tower project and the road south of 65 is not completed yet but that 65 is substantially complete. Finance Director Hedberg explained that there are two property owners that would be assessed prior to the Hinton portion being completed. Council Member Grossklaus noted that the Hinton portion of the project has a lot of detail and asked if all of the items could be completed within two months. Finance Director Regular Meeting — September 17, 2003 Cottage Grove City Council Page 14 Hedberg agreed that the Hinton area is the larger portion of the project adding that 65 was started first due to the school location. He explained that October 15, 2003 is the latest date that the City could hold a public hearing and be able to include the assessments on the 2004 property tax statement. He reviewed the issues with Council noting that the statutory cutoff is November 15, 2003. Douglas W. Sacks, 7570 65 Street, stated the current assessment of his property is for the current value of his home noting that the draft shows an assessment for two additional units on one acre of land. He stated that this assessment process does not make sense to him and asked how he could be charged an assessment for two additional homes when there is only one home located on the property. He stated that currently they do not have water or sewer connection in front of his house and that it is his understanding that the City would defer the assessment indefinitely. He thanked the Council for their time and urged the Council to decide what is fair. Finance Director Hedberg confirmed that the assessment would be deferred until the property is developed. He stated that the interest on the deferred portion would be 7% and that it would not compound accruing interest. Mary Dahlin, 7530 65 Street South, stated that she had two concerns to express to Council. She stated that she is very distressed and upset that she did not receive notification regarding this meeting. She stated that it was her understanding that anyone affected should have received notification from the City adding that had her neighbor not mentioned it to her, she would have never known. Dahlin clarified her understanding that her property is being assessed using the same formula for the foot frontage as U.S. Homes. She stated that she has not benefited from the road. She strongly objected to the use of the same formula as U.S. Homes for her assessments stating that the developer would benefit more from the road than she would. She stated that she did not even want the road to begin with. Community Development Director Lindquist explained that they are being assessed for the property located at 70 and Hinton and reviewed the formula used with Council. Alice Young, 7930 65 Street South, stated that she too is opposed to the assessments and project and that she would be forwarding a detailed list of her concerns to each Council Member for their review. She explained that they own an older home that is located on five acres of land. It is a single - family home, fully homesteaded, that she and her husband have lived there for over 30 years. She stated that it is her understanding that the City is treating them for assessment purposes because they have lots that could potentially be developed. She stated that their existing home is being assessed for the full market value in addition to being assessed for three more potential lots that were assessed as underdeveloped lots. She stated that there are no city services available and yet the lots are now worth the average price of a home in the West Draw. She stated that not only do these homes not exist; she and her husband do not plan to develop the property. She stated that the on]X reason their property is being assessed is because they have driveways exiting onto 65 and Regular Meeting — September 17, 2003 Cottage Grove City Council Page 15 that this was the deciding factor. She stated that she was told that the assessment was based on the Pavement Management Assessment Policy and asked if the formula within the policy has changed. She explained that in other pavement management projects the homeowners were assessed 1 -2 %. She expressed her disagreement with the assessments stating that she does not think that the reconstruction and updating being done along 65 Street for US Homes should qualify their homes for development. She stated that it also appears to her that the County is paying for the entire cost for the upgrade along 65 and Hinton and reviewed her understanding of the agreement with Council. She asked if they are being charged for some thing the County is paying for. She stated that she has met with the County and that she was told that the County was not charging them for anything. She stated that in order for the City to levy an assessment against her property that they would have to prove the value of the property to the owner and asked Council to explain how she and her husband are getting $21,000 worth of benefit. She stated that she does not understand how things can be changed like this without their input and expressed her appreciation for their efforts to defer the assessment. Mayor Pro Tern Kohls asked if she and her husband have discussed, prior to this happening, any development to their land. Mrs. Young stated that she was told that they would be able to subdivide three additional lots from their property. Mayor Pro Tern Kohls asked if they had ever discussed subdividing their property. Mrs. Young stated that they had discussed upgrading or building a new home for themselves but that they had never discussed subdividing the land. She also stated that at this point they would not be able to afford building a new home. Mayor Pro Tem Kohls asked Community Development Director Lindquist if the Young's came to the City with a development agreement for the platting of their property could they do this now and get the actual number of units that they are talking about assessing. Community Development Director Lindquist stated that Staff did not do a layout of their property and reviewed the process they took to determine the assessment. Council Member Grossklaus asked for clarification on the County payment. Mrs. Young clarified that it is project- funding split. City Administrator Schroeder noted that the City expenses would actually go up and that the numbers are arrived at through a cost share formula. Ms. Young asked why the City has an agreement with the County that does not clarify the costs of the project. She asked that someone from staff get back with her with a clarification of the agreement between the City and County. She clarified that she is not a church or a developer and asked why she is being assessed like one. City Administrator Schroeder clarified that this is not the public hearing and explained that the City has an obligation under the law to be consistent with the assessments and the formula process. He explained that the City cannot differentiate between each property. He stated that they would consider the issues raised and reviewed the deferral process with the Council. He assured Council that Regular Meeting — September 17, 2003 Cottage Grove City Council Page 16 this is as fair as they can be with respect to assessing the current residents and at the same time treat all others in the same fashion, according to state law. Ms. Young asked why they were not assessed as an undeveloped lot. Council Member Rice noted that they all have a brand new road in front of their property and asked them why they do not want to pay for it. The Residents all answered that they did not want or ask for the road. They stated that trees were removed that they did not want removed and the land changed when they did not want the change. The Residents all stated that they were not given an option. Ms. Young asked the City Staff to explain to her how the benefit to her was determined without her input. Council Member Rice asked if she felt the dollar amount assessed was a fair amount. Mrs. Young agreed that the dollar amount was fair based on how other properties were assessed for the street adding that she does not think that the land assessment is a fair amount. Mayor Pro Tern Kohls asked Staff to get back with Mrs. Young to clarify the process and how the benefit was determined. Council Member Grossklaus asked why they were making a precedence that if a third of the project is complete that it is good enough to set a date for the hearing. Finance Director Hedberg clarified that the Hinton Tower area would be substantially completed by the time the hearing would be held. He reviewed the assessment interest calculations done by the County with Council stating that if they wait until January 15, 2004 that the interest would begin at that time but that payment would not be due until January 2005. Mayor Pro Tern Kohls stated that they just did the assessment for the Thompson Grove Pavement Management Project. She explained that 45% of the costs for the Thompson Grove Pavement Management Project would be assessed back to several property owners and that in this case approximately 47% of the costs are being assessed back to six property owners with two to three homeowners owning property that could potentially be developed. She stated that all homeowners should be able to expect equal and fair treatment and know that their property is being assessed based on one policy and property value. Mayor Pro Tern Kohls expressed concerns stating that it appears to be setting a precedent. She stated that she understands that they would receive a deferment noting that her issue is with the overall policy and that she plans to vote no. City Administrator Schroeder agreed with the concern that this could cause premature development of the parcels noting it is a valid concern. He stated that Staff has determined a process that would defer the assessment costs until the property is developed versus expecting immediate payment upon assessment. Mayor Pro Tern Kohls agreed that deferment is much better than a flat assessment. She stated that a general precedent is being set here and asked if the deferment option would be available the next time this Regular Meeting — September 17, 2003 Cottage Grove City Council Page 17 happens. Council Member Wolcott explained that the same thing was done with the West Draw where they did not assess the property unless they connected to the city water and sewer. He stated that several options were discussed and that they decided on deferment in order to remain consistent with the process. City Attorney Thomson clarified that all that has been done is require the process for notifying the owners. She stated that this is not the time to make decisions on the assessments. She stated that it should be adopted so that all owners are notified. She clarified that this does not preclude Council to reduce assessments at the future meeting. She explained that at the future meeting they would adopt an assessment roll that would be used on the properties. She reminded the Council that if this is not approved at this time that it would not be included on the property taxes for 2004. She noted that they could table for further discussion and adopt a resolution at the October 1, 2003 meeting. Council Member Grossklaus explained that his concern is with the project not being substantially completed at this time. He expressed doubts that it would be done in time as projected and that he does not want to pass a resolution until it is substantially completed. MOTION BY RICE, SECONDED BY WOLCOTT, TO ADOPT THE RESOLUTION DECLARING COSTS TO BE ASSESSED AND ORDERING PREPARATION OF PROPOSED ASSESSMENT ROLL FOR THE COUNTY ROAD 13 (65 STREET AND HINTON AVENUE SOUTH OF 65 STREET) ROAD IMPROVEMENT PROJECT, COUNTY PROJECTS SAP 82- 613 -20 AND 82- 020 -03. MOTION FAILED 2 -2 (2 NAYS — GROSSKLAUS AND KOHLS) MOTION BY GROSSKLAUS, SECONDED BY WOLCOTT, TO RECONSIDER THE MOTION AS LONG AS THE PROJECT WAS SUBSTANTIALLY COMPLETED BY OCTOBER 15, 2003. MOTION CARRIED 3 -1 (1 NAY- KOHLS) MOTION BY RICE, SECONDED BY WOLCOTT, TO ADOPT RESOLUTION NO. 03 -216 DECLARING COSTS TO BE ASSESSED AND ORDERING PREPARATION OF PROPOSED ASSESSMENT ROLL FOR THE COUNTY ROAD 13 (65 STREET AND HINTON AVENUE SOUTH OF 65 STREET) ROAD IMPROVEMENT PROJECT, COUNTY PROJECTS SAP 82- 613 -20 AND 82- 020 -03, AS LONG AS THE PROJECT WAS SUBSTANTIALLY COMPLETED BY OCTOBER 15, 2003. MOTION CARRIED 3 -1 (1 NAY — KOHLS) MOTION BY WOLCOTT, SECONDED BY RICE, TO ADOPT RESOLUTION NO. 03 -217 CALLING FOR A HEARING ON PROPOSED ASSESSMENTS FOR THE COUNTY ROAD 13(65 TH STREET AND HINTON AVENUE SOUTH OF 65 STREET) ROAD IMPROVEMENT PROJECT, COUNTY PROJECTS SAP 82- 613 -20 AND 82- 020 -03, TO BE HELD ON OCTOBER 15, 2003. MOTION CARRIED 4 -0. Mayor Pro Tern Kohls called a ten - minute break at 9:40 p.m Regular Meeting — September 17, 2003 Cottage Grove City Council Page 18 Mayor Pro Tern Kohls called the meeting back to order at 9:50 p.m. C. Consider Receiving Information and Provide Staff with Direction on a Franchise Fee for Electric and Gas Utility Services. Finance Director Hedberg stated that one of the options discussed during the budget meetings held this past summer for addressing projected state aid shortfalls was the adding of a franchise fee for gas and electric service. He stated that the adopted preliminary 2004 budget includes $230,000 in franchise fees for the general fund noting that over the past two months the City has received a draft franchise fee ordinance from Kennedy and Graven as well as a recommended fee structure from Xcel Energy. He explained that the action requested is for Council to provide Staff with direction on renegotiating the existing franchise ordinance with energy providers. He stated that the current franchise ordinances run until 2007/2008, and Xcel and Centre Point have indicated that they would be interested in renegotiating the franchise ordinance for a 20 -year period. He stated that the expected start date for the franchise fees would be in early 2004. Hedberg explained that cities are permitted by the State statute to charge a franchise fee to utilities. He further explained that the fees are a mechanism by which the City may charge the utilities for the right to use the public right -of -way. He reviewed the current League of Minnesota Cities policy on franchise fees and an editorial prepared by the TwinWest Chamber of Commerce opposing the franchise fees. Hedberg provided Council with an overview of the proposed franchise fee structures noting that the draft ordinance has been included as a reference. He stated that the companies have not reviewed the draft and that some of the language could change before final adoption. He stated that the term of this franchise is 20 years and would take effect 60 days after the Council passes the ordinance, if the companies do not file a written objection. The franchise fee ordinance cannot be adopted until 60 days after written notice of the ordinance has been served on the company. Mayor Pro Tern Kohls asked how often the fees could be adjusted. Finance Director Hedberg stated that it would be part of the franchise agreement and that the draft states annually with a 60 -day written notice. Colette Jurek, Xcel Energy, stated that what they are doing is coming forward to ask for inclusion of a sunset provision. She stated that this would allow consistency adding that they would review every three to five years to ensure that the agreement is meeting the needs of the City. She stated that if at the time of the review the City wants to change the amount they would be willing to renegotiate. Mayor Pro Tern Kohls asked if it would open the entire agreement for negotiation. Ms. Jurek clarified that it would only open for renegotiation of the fee. Regular Meeting — September 17, 2003 Cottage Grove City Council Page 19 Mayor Pro Tern Kohls asked when it would come back to Council. City Administrator Schroeder explained that it cannot take affect until 60 days after adoption. He further explained that to implement by January 1, 2004 they would have to adopt the ordinance by October 15, 2003. Council Member Wolcott stated that they should put a cap on the percentage. City Administrator Schroeder stated that they do not have all of the information on this issue yet noting that the concern has been with campus situations where they have several buildings. He stated that their concern is that there would be 50 accounts, one for each building, adding that they want to avoid that situation. Ms. Jurek clarified that only one flat fee would be charged per month per premise, not per building on the premise. D. Consider Receiving Information Regarding the Building Elevations for Grove Plaza and Provide Comments Consider Supporting Staff Recommendation for Additional Streetscape including Perimeter Planting Areas Benches and Trash Containers Complementary to the Building Architecture and Architecturally Enhanced Pavement Treatment Along or Within the Newly Constructed Sidewalk. Community Development Director Lindquist stated that as a part of the Grove Plaza approvals the property owner indicated that the mall would be reconstructed and updated. She stated that they have also indicated an interest in a vacant lot located behind Hollywood Video for additional commercial development. She referenced the proposed building elevation for the mall portion of the Grove Plaza. She stated that the design is substantially consistent with the previous designs shown to Council and the EDA during the Home Depot review. She stated that they had requested a color elevation because it was unclear what the mall would look like and how it would relate to the other anchor tenants. She reviewed stating that they also requested that it would be darker and more consistent with Home Depot. She stated that the elevation for the small retail space behind Hollywood Video would be similar in design and materials as the rest of the mall area. She reviewed the Site Plan with Council noting Staff has a concern with streetscaping and other embellishments. She stated that they discussed the landscaping and additional elements with the architect and that they have a more favorable commitment from the architect. She stated that they expect a more detailed plan that would include these items. She reviewed the plans noting that Staff would like Council to concur with them regarding the request for additional streetscaping. She noted that any additional comments would be referred back to the architect. Council Member Wolcott asked if they are using the same architect. Community Development Director Lindquist stated that they are working with Bill Miller and Greg Hollencamp. Council Member Wolcott stated that they would expect them to continue on with what was first promised adding that he is glad to see that it is not a white background. He stated that the additional building should be contingent upon being similar to rest of the mall. Regular Meeting — September 17, 2003 Cottage Grove City Council Page 20 City Administrator Schroeder stated that they are hoping to begin construction in November noting that a portion of the mall area near Hallmark would be delayed until after the holiday season. He stated that they would begin in the January/February 2004 timeframe. He stated that the expect In Concert and Hallmark to continue as tenants and that they have a tenant for the bay east of Hallmark that wants to begin fall construction. He stated that they are working on getting a larger tenant on the Rainbow side of the center and that they have a deadline of October 2003. He stated that if they are successful, construction for this portion would begin at the same time as Hallmark. Council Member Wolcott stated that he would prefer to see it contingent upon completion as promised. He stated that he wants strings attached to what they can create and ensure the mall is completed with the agreed upon streetscaping. Council Member Rice expressed concerns regarding how it would look along East Point Douglas and asked if they would have controls regarding irrigation and maintenance of landscape. He asked if irrigation would be built in and around the entire area. City Administrator Schroeder stated that the City would be responsible for maintenance of the pond and that the property owner would be responsible for the aesthetics around the pond. Mayor Pro Tern Kohls asked if irrigation is required in all landscaping plans. Community Development Director Lindquist stated that irrigation is required with all landscaping adding that the real issue is whether it is used or not. Mayor Pro Tern Kohls asked if an ordinance would be in place to cover the signage in this plan or would it be placed in a covenant. Community Development Director Lindquist clarified that they want the signage to relate to each individual storefront. She reviewed the signage agreement with Council. Mayor Pro Tern Kohls referenced the landscaping stating that she would not go along with the minimum. Community Development Director Lindquist stated that there are limitations with this particular area. She stated that they are looking at something similar with 3 -feet of planting area adding that it would soften the entrance and edges. E. Consider Approving the Lower St Croix Water Management Organization Joint Powers Agreement. Mayor Pro Tern Kohls stated that she is a member of the Water Management Board noting that most of Cottage Grove is covered by the Watershed district, except for 12% of the land on the east side of the City. She explained that there has yet to be a joint powers agreement signed by the City of Cottage Grove or the City of Afton. She stated that they are scheduled to meet next Monday and that they hoped to have a contract available for Council review prior to this evening's meeting noting that she did not receive a copy until late this afternoon. She explained that the Attorney who drafted the agreement has had several conversations Regular Meeting — September 17, 2003 Cottage Grove City Council Page 21 with Mr. LaFavre noting that Council Member Wolcott has suggested that the draft go to the City Attorney for final review. She stated that she is comfortable with the draft and assured the Council that the City Attorney concerns have been drafted and implemented. She provided a copy of the post budget for their review noting that Cottage Grove pays about 12 %, Afton pays 17% and the balance is paid by Denmark Township. She stated that the budget includes numbers for 2003 and 2004. She stated that of the $70,000 shown that $50,000 is for the new water plant and is a one -time cost that would not be included on an annual basis. She stated that the expected annual budget for Cottage Grove would be $8,400.00. She stated that financially it would be better for Cottage Grove to be involved adding that if a joint agreement is not signed that the land would be absorbed by a larger Watershed district. She stated that any projects or capital improvement projects caused by the developer would be charged back to the developer. She stated that any capital improvements that should be done that are not initiated by the developer would be split. She stated that the main concern right now is with getting the joint powers agreement signed. She clarified that if any of the communities decided not to go forward with the agreement that it would affect all communities and that they would all be absorbed into the new Watershed District. Council Member Wolcott stated he is much more comfortable with this draft noting that it is a great improvement over the last one. He expressed concerns regarding the budget and stated that he would not support an impact to the 2003 budget but that the 2004 budget would be acceptable. Council Member Rice asked if there is a plan in place. Mayor Pro Tern Kohls confirmed that there is a plan in place that is approximately six to seven years old. She stated that they have estimates from six engineering firms to bring the plan up and current. She stated that they have been non - functional until now and that they have not spent any money. Council Member Rice noted that part of the Watershed District plan took several years to develop before they included costs for community education programs. He stated that he is hesitant about putting dollars towards community education at this time and asked who would perform the developmental review. He expressed concerns stating that $70,000 is a bit high to start with. Mayor Pro Tern Kohls stated that she has requested an outline of what the dollars would be spent on noting that nothing on the list is firm at this time. She clarified that community education is a requirement. Council Member Wolcott clarified that the board approves the budget. She clarified the budget process with Council noting that every year the budget is sent to each community for review and comment prior to approval. MOTION BY RICE, SECONDED BY GROSSKLAUS, TO APPROVE THE LOWER ST. CROIX WATER MANAGEMENT ORGANIZATION JOINT POWERS AGREEMENT. MOTION CARRIED 4 -0. Regular Meeting — September 17, 2003 Cottage Grove City Council Page 22 RESPONSE TO PREVIOUSLY RAISED COUNCIL COMMENTS AND REQUESTS NONE COUNCIL COMMENTS AND REQUESTS Mayor Pro Tern Kohls stated that she has received two calls regarding Bulletin article on staffing. She stated that residents have expressed concerns that they are placing a planner into the Community Development Director position. She clarified that they are doing this until they are able to find a new director through the hiring process. Council Member Rice thanked Community Development Director Lindquist for all of her hard work for the City and wished her well in her new position with the City of Rosemount. He stated that working with her over the last few years has been wonderful and that he has enjoyed working with her very much. He wished her well in her new position. Mayor Pro Tern Kohls noted receiving a call from a resident who stated that she was sad to hear that she was leaving and wanted to commend her for doing a great job for the City of Cottage Grove. PAY BILLS MOTION BY WOLCOTT, SECONDED BY RICE, TO APPROVE PAYMENT OF CHECK NUMBERS TO 131004 THROUGH 131241 TOTALING $1,497,084.21. (CHECKS 131004- 131037 IN THE AMOUNT OF $118,989.08 ISSUED PRIOR TO COUNCIL APPROVAL.) MOTION CARRIED 4 -0. WORKSHOP SESSION — OPEN A. Receive Informa Reoardino Wellhead Protection Public Works Director Burshten stated that they would like to provide Council with a quick update and a brief summary of where they are at in process. Mark Wallis, Bonestroo, Rosene, Anderlik and Associates, provided the Council with a brief overview and update on the Wellhead Protection Plan process. He stated that they are complete with the Phase 1 portion noting that Phase 1 is primarily a scientific model. He reviewed the steps and process that will occur in Phase 2 with Council. He explained that Phase 2 would determine how they would manage the area noting that it would involve two components, the water that comes into the wells and because Well 10 is so shallow there is a surface component that should also be considered. Mayor Pro Tern Kohls asked if it takes the water 10 years to get to the well. Mr. Wallis reviewed the period of time it takes for the water to get into the wells and reviewed the Regular Meeting — September 17, 2003 Cottage Grove City Council Page 23 surface water flow to the capture zones with Council. He explained that this would be managed very differently in Phase 2. Mr. Wallis stated that the Council should know that right now Phase 1 is being approved by the Department of Health and that the City would get a letter that would trigger events leading into Phase 2. He explained that the results from Phase 1 would have to be sent notifying the surrounding areas and provide 30 days for comment and then hold a public hearing for the plan. He stated that the Department of Health would hold the meetings and would review what should be done in Phase 2 in order to decide how to manage the wellhead protection. Council Member Rice asked if the City has to wait to be told what should be done. Mr. Wallis stated that Phase 1 provides a picture of where the water is coming from that goes into the wells and from there they would look carefully at what they want to do to manage the flow. Mayor Pro Tem Kohls expressed concerns that in Phase 2 the State Health Department reviews would dictate what the City would have to do without input. Mr. Wallis confirmed stating that the State Health Department would inform them of the types of contaminants found in the water but that they would not tell them how to manage or what should be done to manage the land mass. Mayor Pro Tem Kohls asked if this would be a major budget item and when would it hit their budget. Mr. Wallis explained that they have two years to complete the process. He stated that Phase 2 has to be completed by August 2005. Mayor Pro Tem Kohls stated that this would be a good thing to do as it helps the City determine the best way to protect underground water supplies. She asked when this would come back to Council for review. Mr. Wallis stated that it would probably be back before Council in October. WORKSHOP SESSION — CLOSED NONE ADJOURNMENT MOTION BY WOLCOTT, SECONDED BY RICE, TO ADJOURN THE MEETING AT 11:15 P.M. MOTION CARRIED 4 -0. Respectfully submitted, Bonita Sullivan TimeSaver Off Site Secretarial, Inc.