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COTTAGE GROVE CITY COUNCIL
City of Cottage Grove, Minnesota
Regular Meeting
December 2. 2009
10l»J!I Mel C11171
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 not on the agenda.
Persons must limit remarks to two (2) minutes.
The following were present: Mayor Myron Bailey, Council Member Pat Rice, Council Member
Mark Grosskiaus, Council Member Jan Peterson, and Council Member Justin Olsen.
The following were absent: None
Also present were: Ryan Schroeder, City Administrator; Caron Stransky, City Clerk; Brenda
Peper, Financial Analyst; Robin Roland, Finance Director, Howard Blin, Community
Development Director; Corrine Heine, City Attorney- Kennedy & Graven; Craig Woolery, Public
Safety Director; Jennifer Levitt, City Engineer; and Les Burshten, Public Works Director.
Mayor Bailey opened Open Forum at 7:15 p.m., and asked if anyone in the audience wished to
address the City Council on any topic not on the agenda.
Bill Amundson, 6055 Hadley Avenue South, Cottage Grove, and Gene Smallidge, 10992 Point
Douglas Drive, Cottage Grove, stated they were in attendance to inform Council that for taxes
payable 2010, they no longer receive green acre protection for land they are not actively farming
and as a result they are seeing a dramatic increase in their taxes. Both individuals indicated they
will be appealing the decision.
City Administrator Schroeder stated that this is not an issue that the City actually has legal
authority for the unintended consequences that resulted from the new law and referred the two
(2) individuals to discuss their concerns with the Washington County Assessor.
There being no further comments from anyone in the audience, Mayor Bailey closed Open Forum
to the Regular Meeting.
CALL TO ORDER - Regular Meeting
The City Council of the City of Cottage Grove, Washington County, Minnesota, held a regular
meeting on December 2, 2009 at the Cottage Grove City Hall, 7516 80 Street South. Mayor
Bailey called the meeting to order at 7:30 p.m.
PLEDGE OF ALLEGIANCE
The audience, staff and the Mayor and Council Members pledged allegiance to the flag of the
United States of America.
Cottage Grove City Council
December 2, 2009 Regular Meeting
ROLL CALL
The following were present: Mayor Myron Bailey, Council Member Pat Rice, Council Member
Mark Grossklaus, Council Member Jen Peterson, and Council Member Justin Olsen. .
The following were absent: None.
Also present were: Ryan Schroeder, City Administrator; Caron Stransky, City Clerk; Brenda
Peper, Financial Analyst; Robin Roland, Finance Director; Howard Blin, Community
Development Director; Corrine Heine, City Attorney- Kennedy & Graven; Craig Woolery, Public
Safety Director; Jennifer Levitt, City Engineer; and Les Burshten, Public Works Director.
Mayor Bailey presided over the meeting
ADOPTION OF AGENDA
Mayor Bailey amended the agenda adding Item B under UNFINISHED AND NEW
BUSINESS to update the Council on watershed district issues.
MOTION BY COUNCIL MEMBER GROSSKLAUS, SECONDED BY COUNCIL MEMBER
PETERSON, TO APPROVE THE AGENDA AS AMENDED. MOTION CARRIED, 5 -0.
2. PRESENTATIONS - None.
3. APPROVAL OF MINUTES
A. July 29, 2009 Special Meeting
There being no amendments to the minutes, Mayor Bailey stated the minutes of the
July 29, 2009 Special Meeting stand approved as presented.
B. August 5, 2009 Special Meeting
There being no amendments to the minutes, Mayor Bailey stated the minutes of the
August 5, 2009 Special Meeting stand approved as presented.
C. August 19 2009 Special Meeting
There being no amendments to the minutes, Mayor Bailey stated the minutes of the
August 19, 2009 Special Meeting stand approved as presented.
4. CONSENT CALENDAR
Cottage Grove City Council
December 2, 2009 Regular Meeting
A. ACCEPT AND PLACE ON FILE THE MINUTES OF THE:
1. PUBLIC SAFETY, HEALTH AND WELFARE COMMISSION MEETING OF
MARCH 17, 2009.
B. RECEIVE THE ANNUAL PROSECUTION SERVICES REPORT AND APPROVE
THE 2010 THRU 2012 CONTRACT FOR PROSECUTION SERVICES WITH THE
TAYLOR LAW FIRM.
C. ADOPT RESOLUTION NO. 2009 -200 A RESOLUTION AUTHORIZING EXECUTION
OF A GRANT AGREEMENT AUTHORIZING THE ACCEPTANCE OF A GRANT
AWARD FOR THE PARTICIPATION IN AN ALCOHOL SATURATION PROGRAM
DESIGNED TO ARREST IMPAIRED DRIVERS (OPERATION NIGHTCAP)
D. AUTHORIZE THE UPGRADE OF THE EXISTING DOCUMENT IMAGING SYSTEM
TO A LASERFICHE DOCUMENT IMAGING SYSTEM SUPPLIED BY CRABTREE
COMPANIES AND TO PURCHASE AN UPGRADED DELL SERVER FOR TOTAL
COST OF $30,535.
MOTION CARRIED. 5 -0.
5. RESPONSE TO PREVIOUSLY RAISED OPEN FORUM ISSUES -None.
6. PUBLIC HEARINGS
A. Hold Public Hearing for the 2009 Property Tax Levy Collectible in 2010 and the 2010
Budget
Financial Analyst Peper reviewed a power point presentation she prepared and
stated that Staff is projecting a decline in the City's taxable tax capacity by 7.2% for
2010 and 2% for 2011. The tax rate per the levy proposed for Council approval will
be 2.2% higher than 2009 despite the fact that we have a 5.8% decline in the taxable
tax capacity. Future impact levies will be eliminated in the budget and Fund Balance
reserves will be preserved for both 2010 and 2011.
Financial Analyst Peper stated Council direction throughout the budget discussion
was to reduce the taxes paid by the average taxpayer to the City by a percentage
comparable to the decrease in their taxable market value. Based on the levy and
budget presented to Council this evening, Staff has followed that direction.
Financial Analyst Peper highlighted the following:
® 2010 tax levy is below the State levy limitations by approximately $450,000
and does not include additional special levies that the Council could have
adopted for such things as the unallotment of market value homestead credit
for 2008 and 2009.
Cottage Grove City Council
December 2, 2009 Regular Meeting 4
The budget addresses a loss of the market value homestead credit in 2010
and 2011. Based on the levy presented to Council this evening, the 2010 tax
ranking is projected to drop in comparison to the market. The City is currently
at about the mean of our comparison cities.
i The tax rate is determined by two (2) factors: the net levy is divided by the
total tax capacity for the City. Those two (2) numbers divided together equals
the property tax rate.
6 Local property tax dollars are determined by taking the taxable market value
times the State classification rate times the property tax rate which equals the
property tax dollars paid by that individual to the City.
9 For 2010, the taxable tax capacity will be $28.7 million.
f From 1998 to 2010, the taxable tax capacity increased 6.3% per year.
However, for 2010, there will actually be a decrease of 5.8 %. The only other
time that this has happened was in 2002, not because of market value
conditions, but was due to classification rate changes made by the State.
• 95.5% of the residents will have a market value decrease.
Y The tax levy before Council is $12,155,000, a decrease in the total levy of
2.3% from the 2009 levy and is actually less than the 2008 levy.
The average increase in the levy from 2001 to 2010 is 5.6% per year, which
compares to the levy in front of Council this evening, or a decrease of 2.3 %.
All cities in the State of Minnesota must adopt a preliminary levy in
September each year. Cottage Grove will have the highest decrease of
2.34 %.
Y There are two (2) other taxing districts within the City that affects our
taxpayers - Washington County will increase their levy 1.94 %; South
Washington County School District will increase .39 %.
• The urban tax extension rate for 2010 would be 34.401 %. The rural rate for
2010 would be 25.871 %, derived by 70% of the urban rate plus debt.
Y The Council last looked at the rural taxing district in November 2006 and
Cottage Grove is one of nine (9) metro communities with a rural tax rate.
Three (3) of those cities are in Washington County and include Cottage
Grove, Hugo and Stillwater.
6 The average resident in Cottage Grove has a property value of $221,600 will
experience a decrease in taxable market value for 2010 of 7.2 %. Based on
that figure, they will pay $45 less in taxes to the City of Cottage Grove for
2010 or a 6.4% decrease.
• The City Council adopted new utility rates effective January 1, 2010. Based
on those rates that Council adopted, the average resident in Cottage Grove
will pay the same in utility charges for both 2009 and 2010 or $40.45.
• The resident with a property value of $221,600 that pays $40.45 per month in
utility services pays total fees and taxes to the City for 2010 of $95.20. Of
that $95.20, $22.74 goes to public safety to pay for police and fire services;
$14.46 goes to public works; $4.56 for pavement management debt, etc.
Financial Analyst Peper stated that the action requested is for Council to hold the
public hearing, adopt the 2009 property tax levy collectible in 2010, and adopt the
2010 operating budget.
Cottage Grove City Council I 5
December 2, 2009 Regular Meeting J
Mayor Bailey opened the public hearing and asked if anyone wished to speak
Jim Jansen, 9649 90 Street South, Cottage Grove, stated he owns farm land
along 90 Street and has received a significant increase in his property tax bill
and asked what ever happen to the green acres program.
City Administrator Schroeder informed Mr. Jansen that the green acres law has
been changed from what it was for many years. In the case of nonproductive farm
land, the State assigns the same value as if it were residential land. City
Administrator Schroeder suggested that Mr. Jansen contact Washington County.
There being no further comments from those in attendance, Mayor Bailey closed
the public hearing and asked for a motion or discussion from Council.
MOTION BY COUNCIL MEMBER OLSEN, SECONDED BY COUNCIL MEMBER
PETERSON, TO ADOPT RESOLUTION NO, 2009 -201 A RESOLUTION
ADOPTING THE 2009 PROPERTY TAX LEVY COLLECTIBLE IN 2010 FOR
THE CITY OF COTTAGE GROVE. MOTION CARRIED. 4 -1. (COUNCIL
MEMBER GROSSKLAUS VOTED NAY)
MOTION BY COUNCIL MEMBER OLSEN, SECONDED BY COUNCIL MEMBER
PETERSON, TO ADOPT RESOLUTION NO. 2009 -202 A RESOLUTION
ADOPTING THE 2010 BUDGET FOR THE CITY OF COTTAGE GROVE.
MOTION CARRIED. 4 -1 (COUNCIL MEMBER GROSSKLAUS VOTED NAY).
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8. UNFINISHED AND NEW BUSINESS
A. Consider Supporting T.H. 61 Safety Improvements
City Engineer Levitt stated the Minnesota Department of Transportation (MnDOT)
will be re- paving TH 61 from just south of 70 Street South to US 10 with funding
through stimulus dollars from the American Recovery and Reinvestment Act (ARRA).
She stated as a part of the project, improvements will be made to shoulders and
ramps from the mainline TH 61. MnDOT is proposing to add three (3) right turn
lanes and close three (3) median locations.
City Engineer Levitt recommended that the Council:
i. Support the closure of access point #1 from East Point Douglas Road and
maintain a maintenance access at this location in the median;
ii. Support the closure of the median at location #3 as presented by MnDOT
while opposing the closure of median location #2; and
iii. that MnDOT install right term lanes at Zywiec's Landscape, New Life Church
and 61 Marine and Sports.
Cottage Grove City Council G
December 2, 2009 Regular Meeting V
Levitt requested that Council adopt the resolution included in the Agenda packet
as presented.
Mayor Bailey asked if anyone on the Council had any questions.
City Engineer Levitt confirmed that the only access point that would be closed is
the access into the Pine Coulee /Countrywood developments.
There being no further questions from Council, Mayor Bailey asked for a motion
to approve the request and adopt the resolution included in the Agenda packet.
MOTION BY COUNCIL MEMBER RICE, SECONDED BY COUNCIL MEMBER
OLSEN, TO ADOPT RESOLUTION NO. 2009 -203 A RESOLUTION
SUPPORTING IMPROVED SAFETY ALONG TH 61 AS PART OF THE 2010
AMERICAN RECOVERY AND REINVESTMENT ACT (ARRA) PROJECT.
MOTION CARRIED. 5 -0.
B. South Washington County Watershed District
Mayor Bailey pointed out at the Council table tonight is a letter he is looking for
Council's approval to send to Mr. Jim Haertel, Metro Region Supervisor with the
Minnesota Board of Water and Soil Resources, as it relates to a petition requesting
that the boundaries of the South Washington Watershed District and the Valley
Branch Watershed District be changed. He asked City Administrator Schroeder to
provide some background information.
City Administrator Schroeder provided background information stating that early this
year, the members of the Lower St. Croix Watershed Management Organization
(WMO) which includes Afton, Denmark Township, Cottage Grove and one household
in Hastings decided to move toward dissolution of the Lower St. Croix WMO and be
absorbed by the South Washington Watershed District. He stated that the Valley
Branch Watershed District Board also passed a resolution supporting that action and
the South Washington Watershed District remained neutral on the issue. This
recommendation was brought in front of the Board of Water and Soil Resources and
in June 2009 and they approved the recommendation. Shortly thereafter individuals
who live in the City of Woodbury filed a petition suggesting that the Board of Water
and Soil Resources had errors in their analysis and that different boundaries along a
major hydrologic watershed lines should have resulted. BWSR is obligated to
address a petition and hold a public hearing. The City received an email from the
BWSR Planning Committee stating they would be recommending approval of the
petition and that the Lower St. Croix WMO would be absorbed by the Valley Branch
Watershed District.
City Administrator Schroeder stated that Kennedy & Graven has drafted a letter on
behalf of the City of Cottage Grove, City of Afton, and Denmark Township to send to
the Board of Water & Soil Resources stating that we object to the petition and action
recommended by the BWSR Planning Committee. He stated he is looking for
Council authorization to send the letter.
Cottage Grove City Council
December 2, 2009 Regular Meeting
Council Member Olsen asked whether we have had any discussions with the City of
Woodbury to better understand their position. Mayor Bailey stated he placed a
telephone call with the Mayor of Woodbury earlier today to schedule such a meeting.
Council Member Rice stated for the record that City has had dialogue with that City of
Woodbury over the past 15 years and that is why the Watershed was created.
Council Member Olsen stated it is good to know that we are attempting to come to an
agreement, if one exists, so that as we proceed through this process we can at least
feel comfortable in the fact that we have tried to reach out.
Mayor Bailey stated if everyone is in agreement, he asked for a motion to approve
the letter and authorize the Mayor to sign the agreement on behalf of the City of
Cottage Grove.
MOTION BY COUNCIL MEMBER GROSSKLAUS, SECONDED BY COUNCIL
MEMBER RICE. TO APPROVE THE LETTER TO BE SENT TO THE MINNESOTA
BOARD OF WATER AND SOIL RESOURCES REGARDING THE SOUTH
WASHINGTON WATERSHED DISTRICT AND VALLEY BRANCH WATERSHED
DISTRICT BOUNDARY CHANGE PETITION. MOTION CARRIED. 5 -0.
C. Receive Response and Provide Direction Regarding Hardwood Avenue Street
Lighting
City Engineer Levitt stated at the last meeting, Council Member Olsen asked staff to
submit information on the possibility of installing street lights along the Hardwood
Avenue Corridor between 80 Street South, north to 70` Street South.
City Engineer Levitt stated in her report dated November 24, 2009 and included in
the Agenda Packet, she provided background information and the concerns that
were raised by residents along Harkness Avenue pertaining to the negative impact
that lighting might have on their property.
City Engineer Levitt stated staff is seeking direction from Council on how to proceed
with this item, noting that this is not in our current Capital Improvements Plan. She
stated her report includes three (3) options. Option 1 is to do nothing; Option 2 is to
hold a neighborhood meeting and Option 3 is to conduct the lighting analysis and
then hold the neighborhood meeting to obtain the neighborhood's opinion.
Council Member Olsen stated he appreciates the quick turnaround from Staff and
having read through the various options, he favored Option 3.
Council Member Grossklaus asked the Public Safety Director whether there have
been any incidents or accidents on Hardwood or Harkness intersections, especially
the southern part of Harkness where it turns into Hardwood. Public Safety Director
Woolery stated he was not aware of any accidents along that stretch of roadway.
Cottage Grove City Council I p
December 2, 2009 Regular Meeting
Mayor Bailey asked Council Member Olsen who he is hearing from, are they from the
homeowner in the neighborhood. Council Member Olsen responded that they are
predominately from folks who use that road both for the purposes of travel to and
from wherever they are going, but also those who use the walkway for bike rides,
walks with the dog, etc.
Mayor Bailey stated he does not have a problem with holding a neighborhood
meeting, but did not think we needed to spend $1,600 for a lighting analysis. Council
Member Olsen stated he would prefer having an analysis in hand at the
neighborhood meeting.
Council Member Rice asked whether we would be looking at lighting the road or to
light the trail. Council Member Olsen responded that from looking at City Engineer
Levitt's analysis, it looks like there is an opportunity to do both effectively. City
Engineer Levitt stated that due to the height and the actual wattage of the fixture, it
would cast light on both the roadway and the pedestrian trail. City Engineer Levitt
stated that conduit was installed as part of the project along that section of roadway.
Council Member Peterson stated in her opinion it makes sense to get some lighting
into the area, especially since we have a senior housing development nearby, with
the folks that might be out walking or in a wheel chair. She stated she would go with
option 3, without the lighting analysis.
Council Member Olsen again stated he preferred #3.
Council Member Rice stated he preferred #3 and get a lighting analysis completed.
Council Member Grossklaus stated the manufacturer should be able to tell us how
much light they will project, so we shouldn't have to spend $1,600.
City Engineer Levitt stated she would look for a cheaper alternative.
Mayor Bailey stated he hears a consensus of Council for option 3 but to come up
with a cheaper alternative to conducting a lighting analysis.
MOTION BY COUNCIL MEMBER OLSEN, SECONDED BY COUNCIL MEMBER
PETERSON, TO PROCEED WITH OPTION 3 AND AUTHORIZE STAFF TO HOLD
A NEIGHBORHOOD MEETING WITH THE RESIDENTS ALONG HARKNESS
AVENUE TO DISCUSS THE OPTION OF INSTALLING STREET LIGHTS. MOTION
CARRIED. 5 -0.
9. RESPONSE TO PREVIOUSLY RAISED COUNCIL COMMENTS AND REQUESTS - None.
10. COUNCIL COMMENTS AND REQUESTS
Mayor Bailey stated earlier this evening, we had a tree lighting ceremony in front of City Hall
and appreciates all of the people who showed up for the event. He stated the winners of the
holiday lighting contest would be announced at the next Council meeting. On December
Cottage Grove City Council
December 2, 2009 Regular Meeting
12", at 5:30 p.m., the Holiday train will arrive in Cottage Grove and he extended an invitation
to the public to join him and the surrounding Mayors at the event. He stated all of the
proceeds from the Holiday train will benefit our local food shelf.
11. PAY BILLS
MOTION BY COUNCIL MEMBER OLSEN, SECONDED BY COUNCIL MEMBER RICE, TO
APPROVE PAYMENT OF CHECK NUMBERS 165191 THROUGH 165250 TOTALING
$297,293.14. (CHECK NUMBERS 165101 THROUGH 165122 TOTALING $82,655.75
WERE ISSUED PRIOR TO COUNCIL APPROVAL). MOTION CARRIED. 5 -0.
12. WORKSHOP SESSION -OPEN TO PUBLIC
A. 2010 Pavement Management Project -River Acres District H
City Engineer Levitt stated the purpose of this workshop was to provide information on
the River Acres Pavement Management Project noting that as staff began preparing
the feasibility study, many questions surfaced regarding the scope of the project, cost,
assessment process, quiet zones, turn around, right -of -way, trails and expectations.
City Engineer Levitt and Senior Planner McCool utilized a power point presentation
highlighting the costs and issues.
Sanitary Sewer
Total Construction Cost = $5,675,797. Area Fund will pay cost of $702,364 for over
sizing and $4,973,433 will be assessed 100 %. Estimated cost per lot ranges from
$37,115 to $42,147.
City Engineer Levitt stated the estimated cost per lot only gets sanitary sewer to the
right -of -way property line. Each resident would still have to abandon their current on-
site sewage treatment system, connect outside of the house, and connect to the right -
of -way. This will cost an additional $3,000 to $4,000 plus the cost to abandon their
septic tanks and drain field systems.
City Administrator Schroeder stated that Staff is recommending that the Council not
extend sanitary sewer to service the area.
Mayor Bailey stated the information should be presented to the residents at the
neighborhood meeting.
Water Main
Total Construction Cost = $2,131,860. 100% of cost would be assessed and will cost
approximately $15,900 per lot to $18,000 per lot.
City Engineer Levitt stated some of the challenges will include water quality, the
additional cost homeowners will need to pay for connection to their homes from the
right -of -way, as well as the cost to abandon their private wells.
Cottage Grove City Council
December 2, 2009 Regular Meeting
Streets
Total Construction Cost - $1,415,767 and 45% of cost would be assessed and will
cost approximately $4,754 to $5,399 per lot. The transportation trails will be assessed
100% and is estimated to cost $50,000 for a trail from 110` Street to 113 Street or
$373 to $423 per lot and approximately $37,000 for a trail from 113` Street to 113`
Court, or $276 to $313 per lot.
Quiet Zone
Total Construction Cost = $64,350. 45% of cost would be assessed and will cost
approximately $546 per lot. The residents in the area signed a petition requesting the
improvements and a turnaround will need to be included for buses.
Rain Water Gardens
City Engineer Levitt stated staff would be looking at the installation of rain water
gardens as an alternative to the installation of storm water. Benefits would include:
plants absorb pollutants; recharge the groundwater; beautifies neighborhoods and is
less expensive than the `traditional' CB's and piping. The cost of Rainwater Gardens
is approximately $30.65 per lineal foot road versus $92.23 per lineal foot road for CB's
and Piping. Maintenance costs are not included and the City would have to negotiate
an agreement with the residents.
Storm Sewer
Total Construction Cost is $230,355 and 45 % will be assessed or approximately $773
to $878 per lot. The balance could potentially be funded through the South
Washington Watershed District or the Washington County Conservation District.
Complete Project
City Engineer Levitt stated each residential would be assessed for streets, storm
water and trail at approximately $5,528 per lot to $6,277 per lot. For streets, storm
water, trails and the quiet zone will cost anywhere between approximately $6,074 per
lot to $6,823 per lot.
Senior Planner John McCool explained how they arrived at the lots included in the
proposed assessments stating there are 151 parcels within the project area. He also
reviewed the special assessment policy for public improvement and various zoning
ordinance provisions relating to existing lots of record, street frontage, onsite
sewerage disposal systems and the lot density and size provisions in the critical
overlay district.
Council authorized staff to have a neighborhood meeting to present this information
and to obtain feedback.
9Ci]►Qysi�y:11j(i3allQ4L4we
ADJOURNMENT
Cottage Grove City Council
December 2, 2009 Regular Meeting
MOTION BY COUNCIL MEMBER OLSEN, SECONDED BY COUNCIL MEMBER PETERSON,
TO ADJOURN THE REGULAR MEETING AT 9:55 P.M. MOTION CARRIED. 5 -0.
Respectfully submitted,
Caron M. Stransky
City Clerk