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HomeMy WebLinkAbout2011-02-16 PACKET 03.A.(M COTTAGE GROVE CITY COUNCIL City of Cottage Grove, Minnesota CALL TO ORDER The City Council of the City of Cottage Grove, Washington County, Minnesota, held a Special Meeting on November 8, 2010 at the Cottage Grove City Hall, 7516 80 Street South. Mayor Myron Bailey called the meeting to order at 7:00 p.m. PLEDGE OF ALLEGIANCE Mayor Bailey led the audience, staff, and Council Members in the pledge of allegiance to the flag of the United States of America ROLL CALL The following were present: Mayor Myron Bailey, Council Member Justin Olsen, Council Member Jen Peterson, 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; and Jennifer Levitt, City Engineer. 1. UNFINISHED AND NEW BUSINESS A. Canvass Results of the November 2, 2010 City General Election and Declare the Winners MOTION BY COUNCIL MEMBER RICE, SECONDED BY COUNCIL MEMBER. OLSEN, TO ADOPT RESOLUTION NO. 2010 - 177.1 A RESOLUTION CANVASSING THE VOTES OF THE CITY GENERAL ELECTION AND DECLARING DERRICK LEHRKE AND DAVE THIEDE AS ELECTED TO THE OFFICE OF COUNCIL MEMBER FOR FOUR (4) YEAR TERMS COMMENCING THE FIRST MONDAY OF JANUARY 2011 OR JANUARY 3, 2011, 2. WORKSHOP SESSION — OPEN TO PUBLIC Cottage Grove City Council 2 November 8, 2010 Special Meeting A. Public Improvement Assessments Rural Assessment Policy City Engineer Levitt stated that at the October 20, 2010 Regular City Council meeting, the City Council requested additional information on how other communities in the Metropolitan Area assess for pavement management projects similar to the City of Cottage Grove's 2010 Pavement Management Project. She stated that the Public Works Department completed an assessment survey of 23 rural and metropolitan cities. The survey compared the assessment methods, the percent of the assessment, the interest rate charged, and the most recent amount assessed against a residential property for a similar project. City Engineer Levitt reviewed the spreadsheet entitled "Tabulation of Assessments and Comparison of Assessment Methods throughout the Twin Cities Area" and stated that of the 49 communities surveyed, the mean average for street improvements was 49% and the median average was 45 %, noting that the City also assesses 45% for street improvements under our Special Assessment Policy. Interest Rate on Special Assessments Finance Director Roland reviewed her memorandum included in the Agenda packet and the spreadsheet entitled "2010 Assessment Comparison ". She stated that the assessments could be paid during the first 30 days after adoption without interest. It is only after the City certifies the assessment that interest is applied. Finance Director Roland then reviewed a handout on prime interest rate dating back to 1930 which shows how the prime rate climbed to a high in the 1980's and decreased to the low today of 3.25°/x. She stated that for the last 15 years, the average prime interest rate has been 6.75 %. Finance Director Roland stated that staff believes that the 7% interest rate, which is in effect, is an appropriate financing interest rate. It is comparable to what other cities charge. Cottage Grove City Council November 8, 2010 Special Meeting Following discussion, the City Council consensus was to keep the interest rate at the existing rate of seven percent (7 %). ADJOURNMENT MOTION BY COUNCIL MEMBER GROSSKLAUS, SECONDED BY COUNCIL MEMBER PETERSON, TO ADJOURN THE SPECIAL MEETING AT 7:27 P.M. MOTION CARRIED. 5 -0. Prepared by, Caron M. Stransky City Clerk