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HomeMy WebLinkAbout2003-11-05 MINUTESREGULAR MEETING COTTAGE GROVE CITY COUNCIL November 5, 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 Shiely encouraged persons to limit their remarks to two (2) minutes per issue. Present: Mayor Sandy Shiely Council Member Pat Rice Council Member Jim Wolcott Council Member Mark Grossklaus Also Present: Ryan Schroeder, City Administrator Ron Hedberg, Finance and Administrative Services Director John McCool, Senior Planner John Mickelson, Director Public Safety Les Burshten, Public Works Director Bob Vose, City Attorney Not present: Council Member Cheryl Kohls No one spoke during Open Forum. CALL TO ORDER The City Council of the City of Cottage Grove, Washington County, Minnesota held a regular meeting on Wednesday, November 5, 2003, at the Cottage Grove City Hall, 7516 80 Street South. Mayor Sandy Shiely called the meeting to order at 7:30 p.m. ROLL CALL Present: Mayor Sandy Shiely Council Member Pat Rice Council Member Jim Wolcott Council Member Mark Grossklaus Also Present: Ryan Schroeder, City Administrator Ron Hedberg, Finance and Administrative Services Director John McCool. Senior Planner John Mickelson, Director Public Safety Les Burshten, Public Works Director Bob Vose, City Attorney Not present: Council Member Cheryl Kohls Regular Meeting — November 5, 2003 Cottage Grove City Council Page 2 ADOPTION OF AGENDA MOTION BY WOLCOTT, SECONDED BY RICE, TO APPROVE THE AGENDA AS PRESENTED. MOTION CARRIED 4 -0. APPOINTMENTS AND PRESENTATIONS A. PRESENTATIONS - NONE B. APPOINTMENTS - NONE APPROVAL OF MINUTES A. October 1, 2003 Regular Meeting. Mayor Shiely stated that the minutes stand approved as presented CONSENT CALENDAR Council Member Rice requested that Item 4G be pulled for discussion. He stated that he would like to thank the Athletic Association for their generous donations over the past year noting that they have donated approximately $50,000. Their contributions have helped fund several City park projects, Mayor Shiely requested that Item 4V be pulled for discussion. Shiely stated that she would like tc clarify the City's intent noting that the application for the multiple animal licenses were approved by the Public Safety, Health and Welfare Commission without stipulations. Shiely explained that if any of the existing animals pass away over the next two years that the animal cannot be replaced. She stated that they are already over the number of pets allowed (3) adding that in certain instances this type of licensing is allowed. She stated that going forward the owners have to follow City Ordinance. Council Member Grossklaus stated that he would like to have this issue further clarified. He referenced the new developments in the area noting that the ordinance is not very clear with respect to people moving into new developments with four to five dogs. Mayor Shiely suggested tabling Item 4V for further consideration and clarification. Council Member Grossklaus stated that he did not want to hold up the process on this specific request adding that he would like the policy further clarified for future requests. MOTION BY WOLCOTT, SECONDED BY RICE, TO A. ACCEPT AND PLACE ON FILE THE FOLLOWING MINUTES: i. PUBLIC WORKS COMMISSION OF SEPTEMBER 8, 2003. J. ECONOMIC DEVELOPMENT AUTHORITY OF SEPTEMBER 9, 2003. iii. PLANNING COMMISSION OF SEPTEMBER 22, 2003. Regular Meeting — November 5, 2003 Cottage Grove City Council Page 3 B. ADOPT RESOLUTION NO. 03 -253 A RESOLUTION APPROVING FINAL PAYMENT IN THE AMOUNT OF $48,668.66 TO DANNER, INC., ON THE JAMAICA AVENUE SOUTH AND 100 STREET IMPROVEMENT PROJECT. C. APPROVE CHANGE ORDER #1 FOR THE HIGHLANDS 1.5 MG ELEVATED RESERVOIR REHABILITATION PROJECT. D. ADOPT RESOLUTION NO. 03 -254 A RESOLUTION APPROVING FINAL PAYMENT OF $54,667.50 TO CHAMPION COATINGS ON THE HIGHLANDS 1.5 MG ELEVATED RESERVOIR REHABILITATION PROJECT. E. ADOPT RESOLUTION NO. 03 -255 A RESOLUTION APPROVING FINAL PAYMENT IN THE AMOUNT OF $7,660.82 TO HYDROCON, INC. ON THE HIDDEN VALLEY 11 ADDITION UTILITY AND STREET IMPROVEMENTS PROJECT. F. ADOPT RESOLUTION NO. 03 -256 A RESOLUTION APPROVING FINAL PAYMENT OF $9,552.42 TO RYAN CONTRACTING COMPANY ON THE PINE GROVE STREET & UTILITY IMPROVMENTS PROJECT. G. ADOPT RESOLUTION NO. 03 -257 A RESOLUTION ACCEPTING DONATIONS FROM THE COTTAGE GROVE ATHLETIC ASSOCIATION. H. ADOPT ORDINANCE NO. 748 AN ORDINANCE FOR THE CITY OF COTTAGE GROVE, MINNESOTA AMENDING TITLE 3, CHAPTER 2 OF THE COTTAGE GROVE CITY CODE RELATING TO BINGO GAMES AND GAMBLING. I. APPROVE THE ICE ARENA CONCESSION STAND LEASE AGREEMENT BETWEEN THE CITY OF COTTAGE GROVE AND THE COTTAGE GROVE ATHLETIC ASSOCIATION. J. ADOPT RESOLUTION NO. 03 -258 A RESOLUTION AUTHORIZING PUBLICATION OF ORDINANCE NO. 747 (SIGN REGULATIONS) BY TITLE AND SUMMARY. K. AUTHORIZE ENTRANCE INTO A MUTUAL AID AGREEMENT WITH WAKOTA MUTUAL FIREMEN'S AID ASSOCIATION AND AUTHORIZE ENTRANCE INTO A MUTUAL AID AGREEMENT WITH WASHINGTON COUNTY FIRE CHIEF'S ASSOCIATION. L. AUTHORIZE STAFF TO INSTALL CROSSWALK WARNING LIGHTS AT THE INTERSECTIONS OF JOLIET AND 80 STREET AND JAMAICA AND 75 STREET FOR A ONE -YEAR PERIOD. M. SET A PUBLIC HEARING FOR THE WELLHEAD PROTECTION PLAN TO BE HELD ON NOVEMBER 19, 2003 AS PART OF THE CITY COUNCIL MEETING. N. AUTHORIZE EAST SUBURBAN RESOURCES, INC. TO PROVIDE JANITORIAL SERVICES TO FIRE STATION NO. 2 EFFECTIVE NOVEMBER 1, 2003. O. RECEIVE UPDATE ON THE STATUS OF THE 2001 FLOOD REPAIR PROJECT TO REPAIR DAMAGE CAUSED BY THE FLOODING OF GREY CLOUD ISLAND TRAIL AND GREY CLOUD ISLAND ROAD. P. ADOPT RESOLUTION NO. 03 -259, A RESOLUTION APPROVING THE FINAL PLAT KNOWN AS TIMBER RIDGE 6 ADDITION. Q. APPROVE AGREEMENT BETWEEN RALPH AND JUNE BROWN AND THE CITY OF COTTAGE GROVE REGARDING THE REALIGHNMENT OF THE INTERSECTION OF HADLEY AND 65 STREET. ADOPT RESOLUTION NO. 03 -260, A RESOLUTION AUTHORIZING THE CITY ENGINEER TO PREPARE A FEASIBILITY STUDY FOR THE REALIGNMENT OF THE INTERSECTION OF 65 STREET AND HADLEY AVENUE, AND TO PROVIDE APPROPRIATE COST ESTIMATES FOR FUTURE PUBLIC IMPROVEMENTS. Regular Meeting — November 5, 2003 Cottage Grove City Council Page 4 R. ADOPT RESOLUTION NO. 03 -261. A RESOLUTION AUTHORIZING THE SENIOR CITIZEN DEFERRAL OF SPECIAL ASSESSMENTS FOR OWNERS OF THE PROPERTY LOCATED AT 8790 HAMLET AVENUE SOUTH AND 8486 GRENADIER AVENUE SOUTH. S. AUTHORIZE RENEWAL OF THE INSURANCE PACKAGE, VOLUNTEER ACCIDENT PLAN, AND OPEN MEETING DEFENSE INSURANCE POLICIES FOOR THE 4/3/03- 4/3/04 POLICY PERIOD, AS RECOMMENDED BY CITY CLERK CARON STRANSKY. T. RECEIVE AND PLACE ON FILE INFORMATION REGARDING PUBLIC NOTIFICATION OF BUILDING PERMIT REQUIREMENTS. U. RECEIVE INFORMATION REGARDING ARCHITECTURAL DESIGN ALTERNATIVES FOR THE WELLHOUSE AT WELL NO. 11. V. APPROVE APPLICATION OF JULIE OLSON FOR A MULTIPLE ANIMAL LICENSE. THROUGH ATTRITION, THE NUMBER OF ANIMALS SHALL BE REDUCED TO A TOTAL OF THREE (3) ANIMALS. W. RECEIVE AND PLACE ON FILE THE STATUS REPORT ON THE FIRE DAMAGED PROPERTY AT 7715 IVERSON AVENUE SOUTH. MOTION CARRIED 4 -0. Mayor Shiely stated that if anyone is present for issues on the Consent Calendar all have been passed. RESPONSE TO PREVIOUSLY RAISED OPEN FORUM ISSUES n Mayor Shiely stated that at the Open Forum segment of the October 15, 2003 City Council meeting, Jim Santos, of 6500 - 77th Street South, asked why he and surrounding property owners were not notified prior to the placement of the manufactured home at 6520 — 77` Street South. She noted that Mr. Santos expressed concerns that the existence of the structure and general condition of the property decreases his property value. She stated that Senior Planner, John McCool, responded, in writing, to Mr. Santos and reviewed the content of the correspondence with the Council. Senior Planner McCool confirmed that Mr. Santos did receive his letter. a Mayor Shiely stated that at the Open Forum segment of the October 15, 2003 City Council meeting, Harriet Marquardt expressed concerns regarding the constructed valley gutters at the intersection of 85` and Hale. She stated that Public Works Director Burshten addressed Ms. Marquardt's concerns in a memo dated October 31, 2003. Public Works Director Burshten reviewed the issues with Council stating that they have not made a decision yet as to how they would remedy the problem. He agreed that the valley gutters must Regular Meeting — November 5, 2003 Cottage Grove City Council Page 5 be addressed. He stated that they are considering several options including possible stop signs in the area. PUBLIC HEARINGS - NONE BID AWARDS - NONE UNFINISHED AND NEW BUSINESS A. Give Representative of After the Gold Rush Inc. Minnesota DBA/Rodeo an Opportunity to Admit or to Deny Allegations of Failing an Alcohol Compliance Check Conducted September 19, 2003. Mayor Shiely stated that on September 19, 2003, the Public Safety Department conducted the second of two alcohol compliance checks for 2003. She noted that of the fifteen (15) licensed liquor establishments checked, 14 refused the sale and one, Rodeo, failed the compliance check and sold liquor to a minor. She stated that this is their first violation in a 24 -month period noting that the last violation occurred in August 2001. She stated that the manager, Joseph Finn, was invited to the meeting to admit to or deny the allegation. City Administrator Schroeder noted for the record that the manager was not in attendance recommending that the Council impose the authorized fine. MOTION BY WOLCOTT, SECONDED BY GROSSKLAUS, TO IMPOSING a $500.00 FINE AGAINST THE OWNER OF THE RODEO FOR A FIRST LIQUOR VIOLATION IN A 24 -MONTH PERIOD. MOTION CARRIED 4 -0. G3 Senior Planner McCool stated that the developer's consultants informed the City last week that they have revised the Oak Park Commons development plan because the windrow of evergreen trees along the east property line was not accurately depicted on the original plan. He explained that evergreens exist in the area where 17 parking spaces have been proposed for construction. Senior Planner McCool noted that the revised plans also propose the elimination of four (4) landscape islands in the parking lot south of the commercial structures and grading the site in two phases. He explained that the modifications to the proposed plan were significant and the developer was required to submit a revised plan for the City to review. Senior Planner McCool provided the Council with a brief history and overview of the original site plan and the proposed changes. He noted that when City Staff and the Planning Commission reviewed the site plan in 2002, the applicant was required to modify the grading plan for purposes of saving more vegetation on the east and west sides of the site. At that time, Staff had recommended that at least 70 percent or 23 evergreen trees along the east side of the site be preserved. This would provide the greatest buffer between the new and existing commercial Regular Meeting — November 5, 2003 Cottage Grove City Council Page 6 property. Senior Planner McCool noted that it is unfortunate that the original development plans did not accurately depict the location of the windrow of evergreen trees. Senior Planner McCool further explained that the landscaping plan at that time did not provide enough landscaping to meet the City's minimum requirements. Because the number of existing trees removed, under the old plan, exceeded the City Ordinance requirements, and the planting of the new trees was less than the tree mitigation requirements, the developer had to pay the City $6,257.00 for tree mitigation. Senior Planner McCool explained that if the revised development plan were accepted, additional money would have to be paid to the City for the loss of the 23 evergreen trees. He reviewed the City's tree replacement schedule with the Council noting that a copy of both landscaping plans has been provided in the Agenda Packet for their review. Senior Planner McCool reviewed the first development phase with Council noting that it would include construction of Building #1 and all of the parking areas except for 22 parking spaces in the northwest corner of the site. He stated that the developer wants to start construction as soon as possible adding that they want to have the base bituminous course and all concrete curbing for the parking lot in place before winter. Senior Planner McCool reviewed construction of the structure with Council noting that by the time tenants will be ready to occupy their leased area in the Spring that the parking and landscaping improvements would be completed. He stated that the developer would complete landscaping in the northwest corner of the site after the second grading phase is completed. All grade elevations, finished floor elevations, and site development would remain the same. Senior Planner McCool stated that Staff is recommending that the parking area in the northwest corner of the site be rough graded to the planned elevation and the second tier retaining wall be constructed as part of the Phase #1 grading. Senior Planner McCool stated that the biggest impact to the revised plan is the removal of the 23 evergreen trees along the east side of the property. Staff is concerned that the original development plan made no provisions to preserve any of the specimen trees on this site noting that a conscious effort was made to preserve as many of these specimen trees as possible based on information originally presented to the City. He stated that the dilemma now is whether the trees must be protected. Requiring the protection of the trees would result in the elimination of the 17 parking spaces along the east side of the site. In order to comply with the minimum off - street requirements, approximately 4,405 square feet of floor area in one or both buildings would have to be eliminated or the developer would have to apply for a variance to the City's minimum off - street parking requirements. He noted that the Planning Division would not support the latter alternative. Senior Planner McCool stated that with the exception to the parking setback variance near Hardwood Court and the landscaping requirements, all other development standards are in compliance. He stated that if the developer is allowed to remove the 23 evergreens and replace them with 25 white pines, 12 -feet in height, it is still recommended that the developer comply with tree mitigation requirements. He stated that this would result in the payment of additional money to the City for 21 white pines 12 -feet in height. Regular Meeting — November 5, 2003 Cottage Grove City Council Page 7 Senior Planner McCool stated that if the City Council finds the changes to be significant or inconsistent to the conditions listed in Resolution No. 2002 -195, then a new resolution should be adopted that addresses the 23 evergreen trees along the east property line, landscape islands in the south parking lot, stockpile of soil material in the northwest corner of the site and /or retaining wall in the northwest corner of the site. Allen Crumpman, DBA Architects, reviewed the layout of the site with Council noting that it has always been their intention to preserve the evergreens on the east side of the property. Crumpman explained that as they worked through the first phase of the design and development of the site, they discovered that the row of evergreen trees on east side were not in line with the initial survey of the site. Therefore, they had purposely pushed the buildings further to the west in order to provide a broad green space on the east side for landscaping. It was assumed that the evergreens fell into this area and that as they got further into the construction phase it was noticed that they were beginning to impact the tree line. Crumpman reviewed the area noting that they plan to place the trees as thick as possible and they would prefer that the dollars required for tree mitigation be utilized for landscaping elements throughout the site, not just for tree replacement. He stated that they intend to stay as close to the original design as possible adding that they have worked very closely with City Staff on the proposed landscape design. It is their belief that the proposed design should work well with the neighboring properties. Mayor Shiely asked why they were removing the landscaped island areas in the parking lot. Mr. Crumpman explained that initially the islands were included because of the access lanes coming into the two buildings and because of the location of the trash enclosures. He reviewed the changes with Council stating that the changes would provide direct access to each end of the building without having to gate the areas. Mayor Shiely clarified her understanding stating that in order to accommodate trash enclosures between the buildings they had to lose a certain number of parking spaces. Mr. Crumpman confirmed and further clarified the changes with Council. Mayor Shiely expressed concerns stating that in losing the islands they would also lose landscaping, in addition to the loss of trees. She asked if this would be addressed. Mr. Crumpman acknowledged her concerns stated that there would be a tradeoff in that they would be adding landscaping in the center area of the buildings. Council Member Grossklaus asked how they plan to screen around the trash enclosure. Mr. Crumpman explained that the trash enclosures are designed to match the materials of the principal structure. He stated that they would also be building retaining walls between their property and the neighboring property and have negotiated with Staff to grade down the area to match the other side of the site. He reviewed the retaining wall locations with Council. City Administrator Schroeder asked what the sequencing would be for construction of the trash enclosures. Don Baker, DBA Architects explained that they would like to delay development of the parking lot in this area due to the amount of excavating that has to be done and because of the proximity of the sidewalk. He further explained that this would allow them to grade the area without having to do anything special or additional. City Administrator Schroeder stated that if the second building is delayed for any period of time that there would have to be a provision included that addresses the delay. Regular Meeting — November 5, 2003 Cottage Grove City Council Page 8 Mayor Shiely asked Senior Planner McCool what the timing would be on the stockpile of materials. Senior Planner McCool reviewed the area stating that the developer feels this stockpile of material is needed to complete the construction of the retaining wall and backfilling around Building No. 2's foundation. He stated that the architect for the developer stated that their retaining wall ties into the west side of Building No. 2 and they do not want the additional expense to reconstruct a portion of their retaining wall. He stated that City Staff believes a majority of the retaining wall could be constructed this fall if the parking area in the northwest corner of the site is rough graded to the proposed elevation. He reviewed the project schedule with Council. Mr. Baker noted that weather could be a factor in their progress and reviewed the build schedule with Council. Mayor Shiely expressed concerns that the developer is proposing a one for one replacement, with any additional trees or dollars to the City versus the Tree Preservation Ordinance requirement of a two for one replacement. Mr. Crumpman explained that this proposal is in an effort to come to a balanced and fair solution on how to approach the project changes. He stated that it has always been their intent to respect the intention of the tree preservation ordinance and yet remain fair to the evolution of the project. The proposed landscaping would be as dense as they could go with the 25 pine trees. He explained that they would like to see the dollars paid for tree mitigation to be applied to the overall project for various landscaping elements. They would also like to remain consistent with what is being done in the neighborhood. Senior Planner McCool stated that there are two different issues to be addressed. The City does have ordinance requirements for landscaping and to allow removal of more trees and not replace them via dollars would not provide an incentive to the developer to maintain or retain current tree levels. Mayor Shiely agreed and clarified that the intent of the ordinance is to preserve green areas within the City. She expressed concerns stating that they are asking the City to trade the green space to allow for the retaining wall. Senior Planner McCool recommended that the City require tree mitigation. He noted that he does not have the exact cost for tree replacement at this time adding that they could have an estimate done to determine the costs to replace the 12 -foot trees. Mr. Crumpman assured the Council that what they would be doing with respect to landscaping would also benefit neighboring properties. He stated that they have kept in mind what would work best for the City and residents throughout the planning process. He assured Council that the landscaping would make the area extremely attractive and that it does go beyond what the ordinance requires. Council Member Wolcott asked for clarification of the tree mitigation already paid. Senior Planner McCool noted that Staff originally requested that 70% of the trees in this area had to be preserved and reviewed what has already been paid with Council. Council Member Rice asked for clarification of the parking areas. Senior Planner McCool reviewed the parking areas with Council noting that it does comply with the minimum requirements of the City ordinance. Regular Meeting — November 5, 2003 Cottage Grove City Council Page 9 Mayor Shiely asked why the revisions were not presented to the Planning Commission for review before City Council consideration. Senior Planner McCool explained that the revisions were not that significant to warrant a review by the Planning Commission. He stated that if Council would prefer, they could request a review of the changes by the Planning Commission. City Administrator Schroeder further clarified noting that the changes were not that significant and that dealing with tree mitigation was the bigger question. He noted that timing is also an issue. Council Member Wolcott asked for further clarification of the tree mitigation concerns and the landscaping for the area. City Administrator Schroeder clarified the ordinance requirements stating that it normally provides for a certain number of trees and bushes. He noted that separate from this issue is an ordinance that deals with the preexisting condition before development and how that condition changed. Wolcott stated that if Council approves this proposed change, 100% of the trees would be removed. He reviewed the tree mitigation payments already made with Council noting that the intent is to plant relatively close to the property that the mitigation would have aided. Council Member Rice referenced the life expectancy of pines and asked what they could expect from the pine trees that would be planted in that area. Mr. Crumpman stated that the trees do have a limited life expectancy. He explained that by placing trees, smaller in size, yet larger than normal, the trees would last approximately 15 to 20 years. He explained that whatever is planted in this area would have two to three times the life expectancy than what is presently there. He noted that the life expectancy is considerably shorter in urban areas. Mayor Shiely expressed concerns stating that the Council is in a position where they have to maintain a consistency between developers adding that there has to be a rationale to this process. Mr. Crumpman agreed that there has to be a clear understanding of the intent of the ordinance. He explained that the original estimate for the construction of the retaining walls was $15,000.00. In dropping the grades for the site and with the interface that they had to maintain for the parking lot, they are now in a position where they have to add an additional $17,000.00 to the construction costs for the construction of the proposed retaining walls. He also noted that to bring in and install a 12 -foot tree would cost approximately $250.00 per tree. They are still paying for the additional $6,200.00 for the original tree mitigation and asked Council to consider utilizing the additional mitigation to offset the proposed changes in landscaping. Mayor Shiely referenced Almar Farms noting that they had a row of evergreens that had to be addressed. She asked Senior Planner McCool what happened to the row of evergreens and asked if there were any other unforeseen expenses that were not in the original plan, including stormwater issues. Senior Planner McCool explained that there was a mix of trees agreed to in the mitigation and preservation of the area. He stated that they did have some unforeseen issues with storm water. Council Member Wolcott acknowledged that credit was given due to the grade changes. He stated that he has mixed emotions regarding the mitigation noting that this issue is not the City's fault and mitigation should be addressed. He agreed that adding trees would be an improvement to the surrounding properties. He stated that they have had the tree mitigation ordinance and have used it for a very long time and expressed concerns that they do not set a precedent for Regular Meeting — November 5, 2003 Cottage Grove City Council Page 10 future mitigations. He explained that he is not sure he wants to waive requirements for tree mitigation and asked Staff to be realistic with what they would expect the developer to pay. Council Member Grossklaus agreed stating that the developer should follow the ordinance as staff recommends. Council Member Rice agreed to the landscaping and removal of the islands. He expressed concerns regarding the loss of trees noting that the proposal would not be an effective windrow. He stated that he could agree with one- for -one tree mitigation and reviewed his concerns with Council. Mr. Crumpman stated that they have worked very closely with Staff on this project adding that they would also like to be able to work with the Council on this issue. He reviewed the changes they agreed to with Council and explained that from a tree mitigation standpoint it is their intention to maintain adequate landscaping and keep the area attractive. He noted that in past discussions it was suggested that Burnett would also assist in plantings along the west edge. He suggested that they also finish the planting along the wall area and asked if this would be an acceptable alternative. Mayor Shiely stated it would depend upon the value of the landscaping. City Administrator Schroeder suggested that Mr. Crumpman work with Staff on this issue. He explained to Council that the proposal is requesting that they be allowed to remove the pine trees. He suggested that Council direct Staff to work with the property owner on various ideas to address the tree mitigation dollars and whether dollars could be directed towards enhancements of the property. Council Member Wolcott stated that they are willing to work with the developer. He reviewed his concerns regarding potential precedents with Council stating that they have an ordinance that should be followed. City Administrator Schroeder suggested that the Council approve the request to remove the windrow of evergreens and direct Staff to work with the developer to provide a resolution to address the tree mitigation plan. City Attorney Vose clarified that this modification would affect Condition 11. He stated that he would like to see this included in context with the original approval of the site plan. Mayor Shiely clarified that they are amending Resolution No. 2002 -195, Condition 11, for tree mitigation. MOTION BY WOLCOTT, SECONDED BY RICE, TO ADOPT RESOLUTION NO. 03- 261.1 A RESOLUTION AMENDING RESOLUTION NO. 02 -195, CONDITION 11 RELATING TO THE REMOVAL OF THE WINDROW OF EVERGREEN TREES, DIRECTING STAFF TO WORK WITH THE APPLICANT ON A TREE MITIGATION PLAN BEYOND CASH PAYMENT. MOTION CARRIED 4 -0. C. 1. Consider Adopting an Ordinance Entitled Electric Franchise Ordinance with Xcel Energy. City Administrator Schroeder stated that within the 2004 budget, the City Council assumed implementation of a franchise fee against Xcel Energy and CentrePoint Minnegasco. He stated Regular Meeting — November 5, 2003 Cottage Grove City Council Page i i that in order to provide for the franchise fee, the City is required to adopt an ordinance and a subsequent fee resolution that is a negotiated document between parties. He stated that the applicable ordinances for Xcel Energy and CentrePoint Minnegasco have been provided for their review noting that the City entered 20 -year franchises with both utilities on June 15, 1988. He further explained that both were 20 -year ordinances that expire on July 14, 2008. He noted that existing ordinances are silent on the implementation of fees adding that it would be the best course to adopt the proposed ordinances. Schroeder noted that several cities are also following a path toward adoption of franchise fees. The assumption would be to implement the fees effective January 1, 2004. Presently CentrePoint is agreeing with the January 1, 2004 implementation. Xcel is requesting that fees be implemented in February. He noted that various groups have been working towards a defeat of the franchise fees around the metro area including a number of Chambers of Commerce. He stated that their local chapter has not taken a position on the matter and that CentrePoint is not opposed to the franchise fees. He stated that Xcel is not opposed as long as the fee is below 4% of the individual utility bills. He reviewed the percentages with Council noting that Xcel Energy is responsible for the proposed fee schedule and method under consideration. He also noted that Staff was informed that Cub Food Stores has a corporate policy in opposition to franchise fees. He stated that under the current ordinance proposal the gas and electric franchise fee levied against Cub, on an annual basis, is $660.00. He noted that they have not received any additional public input regarding imposition of the fee. Colette Urich, Xcel Energy clarified that it would be one franchise fee per month, per premise, location, or customer. She stated that this would include the gas fee schedule, under firm transportation and interruptible transportations noting that currently Xcel does not have customers included in this fee category. She stated that it is being recommended that they establish the category and fee amount for customers for future purposes. She stated that collection would begin 60 days after City Council adopts the ordinances adding that collection would begin in February 2004. Arne Hendricks, CentrePoint Energy Minnegasco, reaffirmed their agreement noting that they do not have the same customers in the transportation area adding that the fee should be included. He thanked Council for considering adoption of the fixed fee stating that the fee is a more predictable expense that can be counted on by their customers. He stated that this is a good move and is very fair to the customer. He stated that working with City Administrator Schroeder and City Staff has been a very easy process and thanked them for their time and assistance through the process. MOTION BY WOLCOTT, SECONDED BY RICE, TO PASS ORDINANCE NO. 749 AN ORDINANCE GRANTING NORTHERN STATES POWER COMPANY, D /B /A XCEL ENERGY, A MINNESOTA CORPORATION, ITS SUCCESSORS AND ASSIGNS, PERMISSION TO CONSTRUCT, OPERATE, REPAIR, AND MAINTAIN IN THE CITY OF COTTAGE GROVE, MINNESOTA, AN ELECTRIC DISTRIBUTION SYSTEM AND TRANSMISSION LINES, INCLUDING NECESSARY POLES, LINES, FIXTURES AND APPURTENANCES, FOR THE FURNISHING OF ELECTRIC ENERGY TO THE CITY, ITS INHABITANTS, AND OTHERS, AND TO USE THE PUBLIC WAYS AND PUBLIC GROUNDS OF THE CITY FOR SUCH PURPOSES. MOTION CARRIED 4 -0. Regular Meeting — November 5, 2003 Cottage Grove City Council Page 12 2. Consider Adopting an Ordinance Implementing a Franchise Fee on Xcel Energy for Electric Service within the City of Cottage Grove. MOTION BY RICE, SECONDED BY WOLCOTT, TO PASS ORDINANCE NO. 750, AN ORDINANCE IMPLEMENTING AN ELECTRIC FRANCHISE FEE ON NORTHERN STATES POWER D /B /A XCEL ENERGY FOR PROVIDING ELECTRIC SERVICE WITHIN THE CITY OF COTTAGE GROVE. MOTION CARRIED 4 -0. 3. Consider Adopting an Ordinance Entitled Gas Franchise Ordinance with Xcel Energy. MOTION BY RICE, SECONDED BY GROSSKLAUS, TO PASS ORDINANCE NO. 751 CITY OF COTTAGE GROVE, WASHINGTON COUNTY, MINNESOTA, AN ORDINANCE GRANTING TO NORTHERN STATES POWER COMPANY, D /B /A EXCEL ENERGY, A MINNESOTA CORPORATION, ITS SUCCESSORS AND ASSIGNS, PERMISSION TO CONSTRUCT, OPERATE, REPAIR AND MAINTAIN IN THE CITY OF COTTAGE GROVE, MINNESOTA, A GAS DISTRIBUTION SYSTEM INCLUDING NECESSARY GAS PIPES, MAINS AND APPURTENANCES, FOR THE TRANSMISSION OR DISTRIBUTION OF GAS TO THE CITY, ITS INHABITANTS, AND OTHERS, AND TRANSMITTING GAS INTO AND THROUGH THE CITY, AND TO USE THE PUBLIC WAYS AND PUBLIC GROUNDS OF THE CITY FOR SUCH PURPOSES. MOTION CARRIED 4 -0. 4. Consider Adopting an Ordinance Implementing a Franchise Fee on Xcel Energv for Gas Service within the City of Cottage Grove. MOTION BY WOLCOTT, SECONDED BY GROSSKLAUS, TO ADOPT ORDINANCE NO. 752 AN ORDINANCE IMPLEMENTING A GAS FRANCHISE FEE ON NORTHERN STATES POWER D /B /A XCEL ENERGY FOR PROVIDING GAS SERVICE WITHIN THE CITY OF COTTAGE GROVE. MOTION CARRIED 4 -0. 5. Consider Adopting an Ordinance Entitled Gas Franchise Ordinance with CentrePoint Energy Minnegasco. MOTION BY RICE, SECONDED BY WOLCOTT, TO PASS ORDINANCE NO. 753 AN ORDINANCE GRANTING TO CENTERPOINT ENERGY MINNEGASCO, A MINNESOTA CORPORATION, ITS SUCCESSORS AND ASSIGNS, PERMISSION TO CONSTRUCT, OPERATE, REPAIR AND MAINTAIN IN THE CITY OF COTTAGE GROVE, MINNESOTA, A GAS DISTRIBUTION SYSTEM INCLUDING NECESSARY GAS PIPES, MAINS AND APPURTENANCES, FOR THE TRANSMISSION OR DISTRIBUTION OF GAS TO THE CITY, ITS INHABITANTS, AND OTHERS, AND TRANSMITTING GAS INTO AND THROUGH THE CITY, AND TO USE THE PUBLIC WAYS AND PUBLIC GROUNDS OF THE CITY FOR SUCH PURPOSES. MOTION CARRIED 4 -0. Regular Meeting — November 5, 2003 Cottage Grove City Council Page 13 MOTION BY WOLCOTT, SECONDED BY GROSSKLAUS, TO PASS ORDINANCE NO. 754, AN ORDINANCE IMPLEMENTING A GAS FRANCHISE FEE ON CENTERPOINT ENERGY MINNEGASCO FOR PROVIDING GAS SERVICE WITHIN THE CITY OF COTTAGE GROVE. MOTION CARRIED 4 -0. RESPONSE TO PREVIOUSLY RAISED COUNCIL COMMENTS AND REQUESTS - NONE COUNCIL COMMENTS AND REQUESTS Council Member Wolcott noted that during the Pavement Management Program there was discussion regarding the installation of a welcome sign along the west side of Highway 10/61. He stated that he did not want the community to think this had been forgotten. He stated that they are working out the plans and timeframe noting that they would provide an update to Council. City Administrator Schroeder noted that MnDOT has expressed concerns and that they have submitted sign specifications for consideration. He stated that the City would have to work with MnDOT throughout the approval process. Mayor Shiely stated that on December 12, 2003, the Canadian Pacific Railway Holiday Train would be making a stop in Cottage Grove at the corner of Beldon and West Point Douglas Road. She stated that this would be a big community event with the purpose of raising funds for the local food shelf. She stated that posters would be placed throughout town as a reminder and encouraged everyone to come out and enjoy the event. PAY BILLS MOTION BY WOLCOTT, SECONDED BY RICE, TO APPROVE PAYMENT OF CHECK NUMBERS 131639 THROUGH 131921 TOTALING $1,995,652.83. (CHECKS 131639— 131681 TOTALING $83,305.41 ISSUED BEFORE COUNCIL APPROVAL.) MOTION CARRIED 4 -0. WORKSHOP SESSION — OPEN NONE Mayor Shiely called a five - minute break at 9:02 p.m. WORKSHOP SESSION — CLOSED A. Labor Negotiations. Mayor Shiely called the meeting back to order at 9:15 p.m. Present: Mayor Sandy Shiely Council Member Pat Rice Council Member Jim Wolcott Council Member Mark Grossklaus Also Present: Ryan Schroeder, City Administrator Regular Meeting — November 5, 2003 Cottage Grove City Council Page 14 Ron Hedberg, Finance and Administrative Services Director Bob Vose, City Attorney Not present: Council Member Cheryl Kohls MOTION BY WOLCOTT, SECONDED BY RICE, TO TEMPORARILY CLOSE THE MEETING. MOTION CARRIED 4 -0. Finance and Administrative Services Director Ron Hedberg discussed health insurance premiums and options for 2004. Consensus of Council was to follow staff recommendations in support of plan change to reduce future premium increases. MOTION BY WOLCOTT, SECONDED BY RICE, TO ADJOURN THE CLOSED MEETING AND RECONVENE THE REGULAR MEETING. MOTION CARRIED 4 -0. ADJOURNMENT MOTION BY RICE, SECONDED BY SHIELY, TO ADJOURN THE MEETING AT 10:08 P.M. MOTION CARRIED 4 -0. Respectfully submitted, Bonita Sullivan TimeSaver Off Site Secretarial, Inc.