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HomeMy WebLinkAbout2010-05-05 MINUTES COTTAGE GROVE CITY COUNCIL City of Cottage Grove, Minnesota Regular Meeting May 5, 2010 OPEN FORUM Mayor Bailey opened Open Forum at 7:15 p.m., and stated 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 were warned to limit remarks to two (2) minutes or less. The following were present: Mayor Myron Bailey, Council Member Jen Peterson, Council Member Justin Olsen, Council Member Pat Rice, and Council Member Mark Grossklaus. The following were absent: None. Also present: Ryan Schroeder, City Administrator; Caron Stransky, City Clerk; Robin Roland, Finance Director; Howard Blin, Community Development Director; Corrine Heine, City Attorney- Kennedy & Graven; Jennifer Levitt, City Engineer; Craig Woolery, Public Safety Director; and Les Burshten, Public Works Director. Mayor Bailey asked if anyone in the audience wished to address the City Council on any topic not on the agenda. There being none, 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 May 5, 2010, at the Cottage Grove City Hall, 7516 80 Street South, Cottage Grove, th Minnesota. Mayor Bailey called the meeting to order at 7:30 p.m. PLEDGE OF ALLEGIANCE The audience, staff, and the Mayor and members of the City Council pledged allegiance to the flag of the United States of America. ROLL CALL The following were present: Mayor Myron Bailey, Council Member Jen Peterson, Council Member Justin Olsen, Council Member Pat Rice, and Council Member Mark Grossklaus. The following were absent: None. Also present were: Ryan Schroeder, City Administrator; Caron Stransky, City Clerk; Robin Roland, Finance Director; Howard Blin, Community Development Director; Corrine Heine, City Attorney- Kennedy & Graven; Jennifer Levitt, City Engineer; Craig Woolery, Public Safety Director; and Les Burshten, Public Works Director. Mayor Bailey presided over the regular meeting. Cottage Grove City Council 2 May 5, 2010 Regular Meeting 1.ADOPTION OF AGENDA MOTION BY COUNCIL MEMBER OLSEN, SECONDED BY COUNCIL MEMBER RICE, TO APPROVE THE AGENDA AS PRESENTED. MOTION CARRIED. 5-0. 2.PRESENTATIONS – None. 3.APPROVAL OF MINUTES A.March 17, 2010 Regular Meeting There being no amendments to the minutes, Mayor Bailey stated the minutes of the March 17, 2010 Regular Meeting, stand approved as presented. 4.CONSENT CALENDAR Council Member Rice pulled item B and accepted the donation of $750.00 from 3M-Cottage Grove for the July 4 Fireworks Display sponsored by the Cottage Grove Lions Club. th Council Member Olsen pulled item C and asked the City Administrator for an explanation of the requested Council action. City Administrator Schroeder stated there are two (2) actions requested of Council. The first is to adopt a resolution supporting the petition from the South Washington Watershed District (SWWD) to the Board of Water and Soil Resources (BWSR), requesting a boundary change for the SWWD for the transfer of territory currently covered by the Valley Branch Watershed District (VBWD). He stated the second action requested is to adopt a resolution concurring with the petition to add or transfer territory to the SWWD. Council Member Olsen pulled item N and Community Development Director Blin provided an update on the Community Center Task Force. Council Member Peterson pulled item L, the appointment Doug Amos to the City’s Human Services/Rights Commission and stated that there are still two (2) adult vacancies and two (2) student vacancies on the Commission, with the current student representative graduating and moving onto college. She encouraged interested parties to submit an application. Council Member Peterson pulled item O and acknowledged the proclamation declaring May 16-22 as Emergency Medical Services (EMS) Week, and May 15 as Peace Officers Memorial Day in the City of Cottage Grove. Mayor Bailey pulled item J and acknowledged the proclamation declaring the week of May 16-22 as Public Works Week in the City of Cottage Grove. MOTION BY COUNCIL MEMBER OLSEN, SECONDED BY COUNCIL MEMBER GROSSKLAUS, TO: A.ACCEPT AND PLACE ON FILE THE FOLLOWING MINUTES: i.PLANNING COMMISSION MEETING FROM MARCH 22, 2010; AND Cottage Grove City Council 3 May 5, 2010 Regular Meeting ii.HUMAN SERVICES/HUMAN RIGHTS COMMISSION MEETING FROM MARCH 10, 2010. B.ADOPT RESOLUTION NO. 2010-055, A RESOLUTION ACCEPTING DONATION OF $750.00 FROM 3M-COTTAGE GROVE FOR THE FOURTH OF JULY FIREWORKS DISPLAY AND AUTHORIZE STAFF TO SEND THE DONATION TO THE COTTAGE GROVE LIONS CLUB. C.ADOPT RESOLUTION NO. 2010-056, A RESOLUTION SUPPORTING THE PETITION FROM SOUTH WASHINGTON WATERSHED DISTRICT TO THE MINNESOTA BOARD OF WATER AND SOIL RESOURCES REQUESTING A BOUNDARY CHANGE FOR THE SOUTH WASHINGTON WATERSHED DISTRICT FOR THE TRANSFER OF TERRITORY CURRENTLY COVERED BY THE VALLEY BRANCH WATERSHED DISTRICT. ADOPT RESOLUTION NO. 2010-057, A RESOLUTION CONCURRING WITH THE PETITION TO ADD OR TRANSFER TERRITORY TO THE SOUTH WASHINGTON WATERSHED DISTRICT. D.RENEW THE INSURANCE PACKAGE POLICY AND THE VOLUNTEER ACCIDENT INSURANCE POLICY THROUGH THE LEAGUE OF MINNESOTA CITIES INSURANCE TRUST FOR THE APRIL 3, 2010 TO APRIL 3, 2011 POLICY PERIODS. E.AWARD THE ARCHITECTURAL SERVICES CONTRACT TO RVK ARCHITECTS FOR THE LOCKER ROOM AND OBSERVATION DECK IMPROVEMENTS AT THE COTTAGE GROVE ICE ARENA TOTALING $7,240.00, PROCEED WITH THE DESIGN OF THE LOCKER ROOMS AND OBSERVATION DECK, AND OBTAIN QUOTES NECESSARY TO FACILITATE CONSTRUCTION OF THE PROJECT. F.ADOPT RESOLUTION NO. 2010-058, A RESOLUTION AWARDING THE QUOTE FOR THE WELL NO. 7 REHABILITATION-ELECTRICAL WORK IMPROVEMENTS TOTALING $42,900.00. G.ADOPT RESOLUTION NO. 2010-059, A RESOLUTION APPROVING PLANS AND SPECIFICATIONS FOR THE 2010 PAVEMENT MANAGEMENT, RIVER ACRES, DISTRICT H, AND TO SET A BID DATE OF JUNE 10, 2010 AT 11:00 A.M. H.ADOPT RESOLUTION NO. 2010-060, A RESOLUTION APPROVING THE PLANS AND SPECIFICATIONS FOR THE 2010 FINAL STREET CONSTRUCTION PROJECT AND TO SET A BID DATE FOR JUNE 10, 2010 AT 10:00 A.M. I.NOT WAIVE THE STATUTORY TORT LIABILITY LIMITS. J.PROCLAIM THE WEEK OF MAY 16 THROUGH MAY 22, 2010 AS PUBLIC WORKS WEEK IN THE CITY OF COTTAGE GROVE. K.ADOPT RESOLUTION NO. 2010-061, A RESOLUTION AWARDING CONTRACT FOR THE TRAIL-HSL TO FAHRNER ASPHALT, INC., TOTALING $42,500. ADOPT RESOLUTION NO. 2010-062, A RESOLUTION AWARDING QUOTE FOR THE Cottage Grove City Council 4 May 5, 2010 Regular Meeting TRAIL-MAT PRODUCT TO MINNESOTA ASPHALT MAINTENANCE TOTALING $18,192.10. L.APPOINT DOUG AMOS TO THE HUMAN SERVICES/HUMAN RIGHTS COMMISSION FOR A TERM TO EXPIRE FEBRUARY 28, 2012. M.APPROVE THE SPECIFICATIONS FOR TOWING AND IMPOUNDING OF PASSENGER CARS, TRUCK, CYCLES, AND SNOWMOBILES WITHIN THE CITY OF COTTAGE GROVE AND SET A BID DATE FOR JUNE 2, 2010 AT 11:00 A.M. N.RECEIVE UPDATE ON COMMUNITY CENTER TASK FORCE FROM THE COMMUNITY DEVELOPMENT DIRECTOR, HOWARD BLIN. O.PROCLAIM THE WEEK OF MAY 16 THROUGH MAY 22, 2010 AS EMERGENCY MEDICAL SERVICES WEEK IN THE CITY OF COTTAGE GROVE. P.PROCLAIM APRIL 23, 2010 AS ARBOR DAY IN THE CITY OF COTTAGE GROVE. Q.ADOPT RESOLUTION NO. 2010-063, A RESOLUTION ORDERING THE ABATEMENT OF UNSAFE AND UNSANITARY CONDITIONS AT 8069-71 STREET COURT SOUTH, ST COTTAGE GROVE. MOTION CARRIED. 5-0. 5.RESPONSE TO PREVIOUSLY RAISED OPEN FORUM ISSUES – None. A.Recreational Fires Council received the response to Michelle Ramirez from Community Development Director Blin in follow-up to her concerns and request to prohibit recreational fires within residential areas of the City. No action taken. 6.PUBLIC HEARINGS – None. 7.BID AWARDS – None. 8.UNFINISHED AND NEW BUSINESS – None. 9.RESPONSE TO PREVIOUSLY RAISED COUNCIL COMMENTS AND REQUESTS – None. 10.COUNCIL COMMENTS AND REQUESTS Mayor Bailey stated that the Council had a closed session at the March 17 meeting and the Council reviewed the job performance of City Administrator Schroeder and employee survey responses to come up with some consensus that the Council can implement heading into the remainder of 2010 and into 2011. Council Member Olsen stated that there was a very tragic incident in which a Maplewood police officer lost his life and stated he would like to take a moment to honor this man. Cottage Grove City Council 5 May 5, 2010 Regular Meeting Council Member Rice stated on Saturday, May 8, the City of Cottage Grove is hosting a community tree planting event at Highlands Park starting at 9:00 a.m., until about noon. He stated the City is looking for volunteers to plant shrubs and trees. For more information, call Brian Voelker at 458-2847. Mayor Bailey stated that the 2 Annual Stone “Soup-er Bowl” will be held on May 15, 2010, nd at the Park Grove Bowling Lanes to raise money for the Stone Soup Thrift Shop in St. Paul Park. He encouraged the public to participate. 11.PAY BILLS MOTION BY COUNCIL MEMBER GROSSKLAUS, SECONDED BY COUNCIL MEMBER PETERSON, TO APPROVE PAYMENT OF CHECK NUMBERS 166963 THROUGH 167160 TOTALING $369,190.40 (CHECK NUMBERS 166963 THROUGH 166979 TOTALING $88,320.77 WERE ISSUED PRIOR TO COUNCIL APPROVAL. MOTION CARRIED. 5-0. 12.WORKSHOP SESSION – OPEN TO PUBLIC A.70 Street South (CSAH 22) Corridor Study Update th City Engineer Levitt introduced Myra Peterson, Washington County Commissioner, Wayne Sandberg, Deputy Public Works Director, and Joe Gustafson, Engineer of the Washington County Public Works Department. Mr. Gustafson reviewed the preliminary feasibility study and planning efforts that the City and County have been jointly working on for improvements to 70 Street from th Goodview Avenue to Ideal Avenue improvements. Mr. Gustafson highlighted the study objectives, roadway data, specific concerns, design objectives, design options considered, design constraints, a preliminary layout, retaining walls proposed, where we are today, continued challenges and the next steps. A copy of Mr. Gustafson’s power point presentation is attached to and made a part of the original minutes. Mayor Bailey asked if Council had any questions or comments relative to the County’s presentation. Council Member Grossklaus asked if there was any way of putting in some temporary bypasses at Granada and Meadow Grass because he sees a lot of people going into the right-hand turn lane and try to pass. Mr. Gustafson stated that there are interim things that they could look do and stated this is common anywhere that they have high traffic volumes, where they do not have a left turn lane. City Engineer Levitt commented that the conceptual plan includes about $2.4 million for the retaining wall that will include approximately 168,000 square feet of brick. The Council then discussed the potential design for the 70 Street and Hinton th Avenue intersection and the costs for the proposed retaining wall. Cottage Grove City Council 6 May 5, 2010 Regular Meeting Mr. Gustafson reiterated that the project is not currently in the Washington County’s Capital Improvements Program and probably would not be for at least 7-10 years. B.2011-2012 Budget Discussion Finance Director Roland reviewed the information included in her memorandum included in the agenda packet. At the Strategic Planning Session on January 23, 2010, the City Council provided direction on the 2011/2012 budget process: “To proceed toward the 2011 Budget replicating the direction from 2009 and 2010. Include continued moderation of the tax levy rate in comparison to pear communities and moderation of future operating cost increases below our funding ability. Ensure sustainable budgeting as we react to the current down cycle in the economy.” Finance Director Roland asked Council the following questions:  Are the assumptions for the 2011 and 2012 proposed budget, with a 3% increase, where the Council wants to be? Is that where the Council thinks the City should be going. The City froze wages in 2009 and until the last day of 2010, at which point there is a 2% increase for one (1) day. Then we move into 2011 with a 1% increase, plus a potential market adjustment in July 2011.  Is staff on the right track or is there a different track that the Council wants staff to take. Finance Director Roland stated she and City Administrator Schroeder are meeting with Department Heads to go over the proposed budget and would like to provide them with Council direction. Finance Director Roland stated at January 2010 retreat, there was discussion on the City Hall/Public Safety Facility and a Community Center and the initial projection for the City Hall project was to levy $10 million or about $750,000 per year for 20 years. She stated there is cash on hand to reduce the overall amount of debt to bond and we could finance a City Hall/Police Facility with a Capital Improvement bond issue. She stated that the City could add $750,000 of additional debt levy in 2012. City Administrator Schroeder stated that the City has approximately $4 million in the Building Fund and if we assume that this would be a $10 million project, we could use those funds and then levy the $6 million, or we could bond the $10 million and use the Building Fund to make the debt payments for several years. Council Member Olsen asked if there is the ability to look for other sources of funding or other cash on hand. Finance Director Roland stated that the only problem we would have with that is that this is a capital project and we are limited as far as what we can spend the funds on. It has to be “designated” and/or “reserved for a particular purpose”. She stated that we could borrow against an interfund loan, which is what we have done for the golf course and the EDA. The problem with that is the funds would not available for other potential capital projects such as road improvements. Cottage Grove City Council 7 May 5, 2010 Regular Meeting Council Member Rice stated the tax capacity rate is something we have looked at for 12 years, and now you pass it aside as not a big deal or as being important. He stated he sees a 10% tax rate change next year, followed by another 5% increase and we are looking at a 24% tax rate change in two (2) years. Council Member Olsen stated that we should be focusing more on the tax dollar increase than on the tax rate. Mayor Bailey asked Council Member Rice whether he was looking at lowering the tax rate or dollar amount from where it is now and not talk about a City Hall/Public Safety facility. Council Member Rice responded that with building revenue down, he does not see how the City can afford to build it this year. Mayor Bailey stated he understands where Council Member Rice is coming from. Years ago when the Council had cash coming in from development, the Council opted not to construct a new City Hall/Public Safety facility and to reduce the levy as low as possible in order to maintain services. He stated that not too far in the distance, the housing market will rebound and revenues will increase. Mayor Bailey stated in his opinion, the City can afford to build a City Hall/Public Safety facility. Council Member Rice stated we are still seeing home values decrease - 19% over the next two (2) years, and that it will take forever to get back to where we were. He stated he is concerned about losing our great bond rating. Council Member Olsen stated that he likes the idea of utilizing cash to pay down debt and stated he understands the need to have adequate cash on hand for special projects. He stated he needs to know more about the Council’s ability to reallocate cash on hand and commented that some funds are targeted for specific purposes but some are not. When it comes to the funds that we are allocating for operations this year and beyond, Council Member Olsen stated he would like to see this Council discuss where those funds are allocated and determine whether we are allocating them to the appropriate Departments. For example, do we have an adequate number of firefighters, an adequate amount of equipment for the firefighters, do we have the right sort of equipment for our Public Safety and Public Works employees, do we have enough employees, or do we have too many. Council Member Olsen stated that last year Council Member Grossklaus asked for a personnel study and stated that he echoes that request. He stated he would like to see a very hypercritical personnel study completed this year, and by hypercritical he means he wants every position to be accounted for, noting that he would like to know that each position brings value to the City. He stated that based on the current climate that we are in and the amount of work that each individual has, the Council needs to know whether or not each position is necessary today. Finance Director Roland stated she would like to emphasize that for 2011 we already know of benefit situations that may provide some cost savings. She stated there is a pension bill that could raise PERA rates again, and if they do increase, it will cost the City between $20,000 and $25,000. Cottage Grove City Council 8 May 5, 2010 Regular Meeting Council Member Olsen stated that labor is the number one controllable expense and the ability to find efficiencies with labor is a necessary part of doing business, especially when business is down. Council Member Peterson stated she agrees with Council Member Olsen and asked if there were other options to using the cash on hand to pay down debt and to use the cash on hand to offset current projects, such as City Hall/Public Safety facility. She also stated she would like to keep Cottage Grove at the median or average tax rate. City Administrator Schroeder stated that last year, the Council said that people would have an expectation that if their market values go down then their tax dollars should also go down. He asked Council whether they think that people understand the pressures that have been hoisted onto the cities. Council Member Olsen stated he believes key message of the Council is we are doing everything we can to not hurt our ability to maintain services. City Administrator Schroeder stated that if his home’s market value went down from $205,000 to $184,000 and he experienced a $20 decrease in what he pays in City taxes and then it goes down from $184,000 to $170,000 but his taxes go up $4.00, do you think that will be okay? Mayor Bailey stated most of the people he has talked to expect a tax increase this year but to keep the amount as low as possible to maintain existing services. City Administrator Schroeder stated it sounds like there is consensus that the person with a 10% decrease in their home value is still paying the same amount, and the Council is saying that is a reasonable target regardless of where the tax rate goes. Mayor Bailey confirmed that as one of those taxpayers, if the City tells me that my taxes are going to remain the same from last year to this year, he would be happy. He stated that the only time it is going to matter to him, is if he wants to sell his house. Council Member Peterson agreed with Mayor Bailey. Council Member Rice stated that in 2007 the average value of a home in Cottage Grove was $223,400 and the City taxes were $799, and in 2011 the average value home was $184,834 with the City taxes proposed at $721, a $78 decrease. He commented that it is going to take forever to get back to the $223,000 average value. Council Member Olsen commented that over the course of essentially five (5) years, the average value of a home in Cottage Grove decreased $50,000 and it could take 10-20 years before we build that back up. Finance Director Roland reviewed the General Fund Expenditures proposed noting that she is projecting an increase in 2011 due to the increases to salaries and benefits, an increase in fuel costs, and the replacement of equipment that has been put off for a few years. Cottage Grove City Council 9 May 5, 2010 Regular Meeting Council Member Grossklaus stated his opinion has not changed since last year. He stated he does not know how we have done it but we have never made any major cuts anywhere. Private businesses have, the county and the state have, but somehow we have been able to remain status quo. He stated that that concerns him because it doesn’t make economic sense. Council Member Grossklaus stated he does not want to see taxes go up. Council Member Grossklaus stated that we should take some of the funds from reserve to pay down some of our existing debt and then incur new debt. Finance Director Roland stated one (1) reason that the City’s reserves have gone up over the years is due to the interest rates that the City charges (7%) on special assessments and believes the rate may be higher than what other communities charge. Mayor Bailey stated he does not have an issue leaving the rate as is. City Administrator Schroeder highlighted a numbers of things that contributed to the amount of cash on hand. Mayor Bailey asked if there were any other questions or comments from Council. City Administrator Schroeder stated he is hearing consensus that if the average taxpayer experiences a property tax similar (a little less or a little more) than what he/she is experiencing today, that is a reasonable target at this point in time. Mayor Bailey and Council Member Olsen agreed. Finance Director Roland stated that ideally we are hoping to get to a point where the tax rate is consistent with the mean or average of our peer communities. Council Member Rice stated he would like to keep the tax rate in the mean or average range. Council Member Olsen stated he would be interested in receiving a comparison of our interest rate (7%) on special assessments with the communities we compare ourselves to. Mayor Bailey stated the direction from the Council for the City Administrator and Finance Director are to put together an analysis on how to fund a City Hall/Public Safety complex, with various alternatives. City Administrator Schroeder stated it is his goal to get the space needs study updated, obtain preliminary costs, hire an architect and have conceptual plans prepared. He estimates that the City Hall/Public Safety Complex would be approximately 50,000 square foot in size. Cottage Grove City Council 10 May 5, 2010 Regular Meeting Council Member Grossklaus stated it is hard to talk about the new City Hall/Public Safety Complex without knowing the cost. Council Member Olsen asked if the Capital Improvements Plan will be discussed with the budget. Finance Director Roland stated that the budget and CIP forms will be distributed to the Department Heads, and they will be returned to City Engineer Levitt within the same timeframe as the budget. There being no further discussion, Mayor Bailey closed the workshop session. 13. WORKSHOP SESSION – CLOSED TO PUBLIC – None. ADJOURNMENT MOTION BY COUNCIL MEMBER RICE, SECONDED BY COUNCIL MEMBER OLSEN, TO ADJOURN THE REGULAR MEETING AT 10:30 P.M. MOTION CARRIED. 5-0 Respectfully submitted, Caron M. Stransky City Clerk Attachment/1