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HomeMy WebLinkAbout2011-08-10 PACKET 03.A.COTTAGE .• COUNCIL Cottage City of Grove, Minnesota lies Regular Meeting May 18, 2011 OPEN FORUM Mayor Myron Bailey opened Open Forum at 7:15 p.m., and stated that during Open Forum person(s) may address the City Council on subjects that are not a part of the regular meeting agenda, but must limit remarks to two (2) minutes. The purpose of Open Forum is to provide the public the opportunity to provide information to or request action by the City Council. Open Forum may not be used to make personal attacks, to air personality grievances, to make political endorsements, or for political campaign purposes. Open Forum will adjourn to the regular meeting promptly 0 7:30 P.M. The following were present: Mayor Myron Bailey, Council Member Dave Thiede, Council Member Justin Olsen, and Council Member,Derrick Lehrke. The following were absent: Council Member Jeri Peterson. Also present were: Ryan Schroeder, Caron Stransky; City Clerk; City Administrator; Robin Roland, Finance Director; Jennifer Levitt City Engineer; Corrine Heine, City Attorney - Kennedy & Graven; Craig Woolery, Public Saf y, Director; John McCool, Senior Planner; 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. The City Council of the City of Cottage Grove, Washington County, Minnesota, held a Regular Meeting on May 18, 2011, at the Cottage Grove City Hall located at 7516 80` Street South, Cottage Grove. Mayor Myron Bailey called the meeting to order at 7:30 p.m PLEDGE OF ALLEGIANCE Mayor Bailey led the audience, staff, and City 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 Dave Thiede, Council Member Justin Olsen, and Council Member Derrick Lehrke. The following were absent: Council Member Jeri Peterson. Cottage Grove City Council May 18, 2011 Regular Meeting 2 Also present were: Ryan Schroeder, Caron Stransky, City Clerk; City Administrator; Robin Roland, Finance Director; Jennifer Levitt, City Engineer; Corrine Heine, City Attorney - Kennedy & Graven; Craig Woolery, Public Safety Director; John McCool, Senior Planner; and Les Burshten, Public Works Director. Mayor Bailey presided over the meeting. 1. ADOPTION OF AGENDA MOTION BY COUNCIL MEMBER OLSEN, SECONDED BY COUNCIL MEMBER THIEDE, TO APPROVE THE AGENDA AS PRESENTED. MOTION CARRIED. 4 -0. 2. PRESENTATIONS A. Eagle Scout Awards The Mayor and City Council presented a plaque to Eric Schwan, Kevin Riepe, Kyle Southward, and Kory Southward of Boy Scout Troop 777 for achieving the rank of Eagle Scout. B. Xcel Energy Conrad Miller and Collette Jurek with Xcel Energy provided a brief overview of a gas main project noting that in September and November 2010, Xcel Energy repaired a four -inch gas main at 7964 75` Street South and 7878 74`" Street South. Mr. Miller stated that based on the close proximity of these repairs, Xcel Energy plans to replace gas mains in the area to ensure the long -term safe delivery of natural gas to the community. Public Works Director Burshten stated that this is the same area being seal coated this summer and that seal coating contractor has agreed to would complete the sealcoat work in this area after Xcel Energy has completed their project but it would cost the City an additional $ 7,500 for remobilization and delay to the contract finish date. He stated that if the work by Xcel extends too far into the fall, the City might have to eliminate the work this year. Mayor Bailey asked whether Xcel Energy would cover the additional cost to our sealcoating project. Ms. Jurek stated that the City Engineer Levitt and /or Public Works Director Burshten would have to submit a written request to Xcel Energy asking them to pay the increased costs associated with the City's sealcoat project. Council Member Olsen suggested that Xcel Energy hold a neighborhood meeting to inform the residents about the project, what was going to occur, and why, so that the residents are informed as to the reasons behind why Xcel Energy was working in their neighborhood. He stated it would be advantageous to give people an Cottage Grove City Council May 18, 2011 Regular Meeting I 3 opportunity upfront to express their concerns to remove the potential for negative commentary. C. Public Safety /City Hall Best Value Contracting John McNamara of Wold Architect provided an overview of the construction delivery method for the Public Safety /City Hall project called "Best Value Selection ", a copy of the power point presentation is attached to the original minutes. 3. APPROVAL OF MINUTES — None. 4. CONSENT CALENDAR The City Council pulled items A, K, Q, and D for discussion purposes and remove item I from the Consent Calendar for separate action. Council Member Thiede requested that staff amend the minutes of the April 11, 2011 Parks, Recreation, and Natural Resources Commission meeting to reflect that he was present. MOTION BY COUNCIL MEMBER THIEDE, SECONDED BY COUNCIL MEMBER LEHRKE, TO: A. ACCEPT AND PLACE ON FILE THE FOLLOWING MINUTES: i. PUBLIC WORKS COMMISSION MEETING OF APRIL 11, 2011. ii. ENVIRONMENTAL COMMISSION MEETINGS OF APRIL 13, 2011 AND APRIL 27, 2011. iii. PARKS, RECREATION, AND NATURAL RESOURCES COMMISSION MEETINGS OF APRIL 11, 2011 (AS AMENDED) AND MAY 20, 2011. iv. ADVISORY COMMITTEE ON HISTORIC PRESERVATION MEETINGS OF MAY 11, 2010, NOVEMBER 9, 2010, JANUARY 11, 2011, AND MARCH 8, 2011. B. AUTHORIZE ISSUANCE OF A SINGLE - OCCASION GAMBLING PERMIT TO THE SOUTH WASHINGTON COUNTY SENIOR CENTER TO CONDUCT A RAFFLE ON OCTOBER 14, 2011. C. ADOPT RESOLUTION NO. 2011 -055 A RESOLUTION APPROVING PLANS AND SPECIFICATIONS AND ESTABLISHING A BID DATE OF JUNE 30, 2011 AT 10:00 A.M., FOR THE WEST POINT DOUGLAS ROAD EXTENSION. D. APPROVE THE APPOINTMENT OF THADDEUS OWEN AS CHAIR OF THE ENVIRONMENTAL COMMISSION AND THE APPOINTMENT OF ROSEMARY Cottage Grove City Council May 18, 2011 Regular Meeting PALMER TO THE ENVIRONMENTAL COMMISSION. E. APPROVE THE SITE LEASE AGREEMENT BETWEEN THE CITY OF COTTAGE GROVE AND ZAYO GROUP, LLC, FOR INSTALLATION OF A FIBER OPTIC LINE AND EQUIPMENT AT THE GRANGE WATER TOWER. F. AUTHORIZE ISSUANCE OF A TEMPORARY ON -SALE INTOXICATING LIQUOR LICENSES TO ST. RITA'S CHURCH FOR AUGUST 13, 2011 AND SEPTEMBER 17 AND 18, 2011, AND A SINGLE OCCASION GAMBLING PERMIT FOR THEIR FALL FESTIVAL ON SEPTEMBER 17 AND 18, 2011. G. APPROVE THE PURCHASE OF A NEW TORO MODEL GM4100 -D 1.5 -FOOT ROTARY MOWER FOR THE DEPARTMENT OF PUBLIC WORKS, PARKS MAINTENANCE DIVISION, FROM MTI DISTRIBUTING TOTALING $54,484.30. H. ADOPT RESOLUTION NO. 2011 -056 A RESOLUTION APPROVING AN INTERIM CONDITIONAL USE PERMIT TO ALLOW TEMPORARY OUTDOOR SALES OF FIREWORKS BY TNT FIREWORKS IN THE PARKING LOT AT CUB FOODS, 8690 EAST POINT DOUGLAS ROAD, COTTAGE GROVE, FOR THE YEARS 2011 THROUGH 2013. I. REMOVED FROM THE CONSENT CALENDAR. J. RECEIVE THE COTTAGE GROVE AMBIENT AIR MONITORING RESULTS FROM THE LOCATION NEAR THE 3M COTTAGE GROVE FACILITY. K. ADOPT RESOLUTION NO. 2011 -057 A RESOLUTION PROCLAIMING PEACE OFFICER MEMORIAL DAY AND NATIONAL POLICE WEEK. L. AUTHORIZE ISSUANCE OF A SINGLE - OCCASION GAMBLING PERMIT TO THE PHOENIX RESIDENCE TO CONDUCT A RAFFLE AT RIVER OAKS GOLF COURSE ON JUNE 13, 2011. M. ADOPT RESOLUTION NO. 2011 -058 A RESOLUTION ORDERING THE ABATEMENT OF CONDITIONS CREATING A NUISANCE AT 7301 ILLIES AVENUE SOUTH, COTTAGE GROVE. N. RECEIVE INFORMATION ON OFFICIAL NEWSPAPER DESIGNATION, PUBLICATION REQUIREMENTS, AND PUBLICATION FEES. O. ADOPT RESOLUTION NO. 2011 -059, A RESOLUTION APPROVING THE FINAL PLAT NAMED EVERWOOD 3 ADDITION AND TO APPROVE THE DEVELOPMENT AGREEMENT BETWEEN THE CITY OF COTTAGE GROVE AND MJR DEVELOPERS, LLC, TO DEVELOP NINE (9) RESIDENTIAL LOTS AND ONE Cottage Grove City Council May 18, 2011 Regular Meeting cj (1) OUTLOT WITHIN EVERWOOD 3 RD ADDITION. P. APPROVE THE AMENDMENT TO THE DEVELOPMENT AGREEMENT WITH MJR DEVELOPER AND ASPEN GROVE LLC, AND THE CITY OF COTTAGE GROVE FOR EVERWOOD ADDITION. Q. ADOPT RESOLUTION NO. 2011 -060 A RESOLUTION PROCLAIMING THE WEEK OF MAY 15 THROUGH MAY 22, 2011 AS NATIONAL EMS WEEK. MOTION BY COUNCIL MEMBER THIEDE, SECONDED BY COUNCIL MEMBER OLSEN, TO APPROVE THE SOUTH WASHINGTON WATERSHED DISTRICT AGREEMENTS FOR THE PUBLIC SAFETY /CITY HALL BMPS, RAVINE PARKWAY BMPS, EAST DRAW POND CORRIDOR MAINTENANCE, AND THE REGIONAL POND C -P6 COORDINATED CAPITAL IMPROVEMENT PROJECTS (CCIP) IN THE VALUE OF $305,095. MOTION CARRIED. 3 -1. COUNCIL MEMBER LEHRKE VOTED NAY. 5. RESPONSE TO PREVIOUSLY RAISED OPEN FORUM ISSUES — None. 6. PUBLIC HEARINGS —None. 7. BID AWARDS 8. UNFINISHED AND NEW BUSINESS A. Consider Accepting Findings of Fact on the EAW for the 3M East Cove Sediment Removal Project; Consider Declaring a Negative Declaration on the Need for an EIS for the 3M East Cove Sediment Removal Project; and Consider Approving 3M's Conditional Use Permit for a Grading Permit to Remove Sediment Containing PFC's from the East Cove at 3M Cottage Grove Senior Planner McCool highlighted the applications of 3M Company stating that there are two (2) parts to the application filed. The first part relates to the Environmental Assessment Worksheet (EAW) for a project known as "3M East Cove Sediment Removal Project," and the second part was a Conditional Use Permit application for a grading permit to remove approximately 17,000 cubic yards of sediment material containing PFC's from the 3M property. MOTION BY COUNCIL MEMBER OLSEN, SECONDED BY COUNCIL MEMBER LEHRKE, TO ACCEPT THE FINDINGS OF FACTS ON THE ENVIRONMENTAL ASSESSMENT WORKSHOP (EAW) FOR THE EAST COVE SEDIMENT REMOVAL PROJECT PROPOSED BY 3M COMPANY. MOTION CARRIED. 4 -0. Cottage Grove City Council May 18, 2011 Regular Meeting 6 MOTION BY COUNCIL MEMBER LEHRKE, SECONDED BY COUNCIL MEMBER OLSEN, TO ADOPT RESOLUTION NO. 2011 -061 A RESOLUTION DECLARING A NEGATIVE DECLARATION ON THE NEED FOR AN ENVIRONMENT IMPACT STUDY (EIS) FOR THE EAST COVE SEDIMENT REMOVAL PROJECT PROPOSED BY 3M COMPANY. MOTION CARRIED. 4 -0. MOTION BY COUNCIL MEMBER OLSEN, SECONDED BY COUNCIL MEMBER THIEDE, TO ADOPT RESOLUTION NO. 2011 -062 A RESOLUTION APPROVING 3M- COTTAGE GROVE'S CONDITIONAL USE PERMIT APPLICATION FOR A GRADING PERMIT TO REMOVE APPROXIMATELY 17,000 CUBIC YARDS OF SEDIMENT CONTAINING PFC'S FROM THE EAST COVE AT THE 3M COTTAGE GROVE PLANT AND A PORTION OF SANDBAR AT THE COVE OUTLET. MOTION CARRIED. 4 -0. B. Organizational Changes. City Administrator Schroeder highlighted the following proposed organizational changes: I. Establish the position of Parks and Recreation Director at Pay Grade III; ii. Reclassify the position of Arena /Recreation Manager as Ice Arena Manager at Pay Grade VII; iii. Reclassify the position of City Engineer to Pay Grade III; iv. Assign to the Public Works Supervisor the responsibility to ensure full integration of the Performance Management System in the Public Works Department; and to v. Eliminate the positions of GIS Technician, Community Development Director, and Economic Development Coordinator from the Pay Plan. MOTION BY COUNCIL MEMBER OLSEN, SECONDED BY COUNCIL MEMBER THIEDE, TO ADOPT RESOLUTION NO. 2011 -063 A RESOLUTION ADOPTING THE 2011 PAY PLAN AND BENEFITS FOR EMPLOYEES NOT COVERED BY A LABOR CONTRACT FOR THE CITY OF COTTAGE GROVE; REPEALING RESOLUTION NO. 2010 -181. Council Member Lehrke stated he would not be voting in favor of this motion because it appears one (1) of the positions would receive a 30% pay increase and this change is something that should be discussed by the City Council during the upcoming Budget meetings. City Administrator Schroeder stated that Council Member Lehrke was talking about the elimination of the Arena /Recreation Manager position, in Pay Grade V in favor of the Parks and Recreation Director Position in Pay Grade III. He stated that the Arena /Recreation Manager would be backfilled with the Arena Manager position, which would result in a salary increase in one (1) position and a decrease in Cottage Grove City Council May 18, 2011 Regular Meeting 7 another. Additionally, Staff would recommend that we change the title for the Recreation Program Assistant Position that primarily has responsibilities in Ice Arena Programming and change that title to Assistant Ice Arena Manager, with no change in the pay grade or salary. Council Member Council Member Thiede stated that there would be a 30% difference between the Steps A between the two (2) classifications but the real change in salary is a 5 -7% increase. Council Member Lehrke stated that the problem he has with the recommendation of creating another position for the position that is being vacated and adding a new position, which is a 100% increase. He stated that it would not be a savings because we would be promoting one (1) person and giving him a pay increase and then backfilling his position at a slightly lower salary, so the net would be significantly higher. He reiterated that he would like to discuss this at a Budget workshop. UPON VOTE, MOTION CARRIED. 3 -1. (COUNCIL MEMBER LEHRKE VOTED NAY). C. Consider Approving Agreements with Washington County Pertaining to the Public Safety /City Hall Proiect on Use and Replacement of Land in Cottage Grove Ravine Regional Park and for Land Street, and Utility Improvements. MOTION BY COUNCIL MEMBER OLSEN, SECONDED BY COUNCIL MEMBER THIEDE, TO TABLE THE AGREEMENTS TO THE JUNE 1, 2011 REGULAR MEETING. MOTION CARRIED. 4 -0. 9. RESPONSE TO PREVIOUSLY RAISED COUNCIL COMMENTS AND REQUESTS — None. 10. COUNCIL COMMENTS AND REQUESTS Mayor Bailey stated that the Night to Unite Informational Picnic would be May 19 at Kingston Park. Council Member Olsen acknowledged that this was National Police Week and EMS Week and encouraged the public to thank the Public Safety Department employees for their dedication to the community while working and /or volunteering for the community. Council Member Lehrke stated that the Beyond the Yellow Ribbon Spaghetti Dinner Fundraiser would be May 21 at the Cottage Grove VFW. Cottage Grove City Council May 18, 2011 Regular Meeting 8 Council Member Thiede stated that the Strawberry Fast would be June 16 through June 19 at Kingston Park. 11. PAY BILLS MOTION BY COUNCIL MEMBER OLSEN, SECONDED BY COUNCIL MEMBER THIEDE, TO APPROVE PAYMENT OF CHECK NUMBERS 171900 THROUGH 172069 FOR $1,065,247.42. (CHECK NUMBERS 171900 THROUGH 171931 FOR $663,772.28 ISSUED PRIOR TO COUNCIL APPROVAL). MOTION CARRIED. 4 -0. 12. WORKSHOP SESSION -OPEN TO THE PUBLIC None. A. Facility Use Policy and Community /School Based Youth Athletic Programming Parks and Recreation Director Dockter highlighted the issues surrounding the City's facility use policy and community /school based athletic programming. From his memorandum included in the Agenda Packet, Parks and Recreation Director Dockter stated that in 2009 the City Council adopted a facility use policy that anticipated the formulation of an East Ridge Athletic Association (ERAA) to be comprised of both Cottage Grove and Woodbury residents. The revised facility use policy took into consideration the understanding that some percentage of ERAA members would be Cottage Grove residents and as such should have some level of opportunity in scheduling City facilities to meet their needs. The City of Woodbury adopted a nearly identical policy to assure the policies were equitable across City lines. Parks and Recreation Director Dockter also stated that there are issues that warrant another review of the policies for each City. He stated that prior to opening East Ridge High School, the Cottage Grove Athletic Association (CGAA), Woodbury Athletic Association (WAA) and the School District developed a task force to study potential impacts of having a third athletic association within the two (2) communities. The task force recommendation to continue of community -based youth athletic programming. The alternative of school -based recreational programming was not recommended for the in -house recreational levels but it was understood that some traveling programs might be necessary for fulfillment of high school sports needs (feeder program). Parks and Recreation Director Dockter stated that shortly after the opening of East Ridge High School, a group of parents formed the ERAA and teams for football, basketball, softball, baseball, soccer, volleyball, and track and field, which are programs also offered by the CGAA and WAA. Having received advanced notice of the development of the ERAA, the cities of Cottage Grove and Woodbury quickly developed the aforementioned facility use policies to address the situation and received City Council approval. With this policy in place, the City of Cottage Grove has been able to satisfy the needs of the CGAA and ERAA with ease. However, the Cottage Grove City Council May 18, 2011 Regular Meeting 1 g City Woodbury and the School District have not been so fortunate and they are finding the process extremely difficult to manage. The difference in conflict levels is likely due to the very small percentage of ERAA members that are residents of Cottage Grove whereas the majority of ERAA members currently reside in Woodbury. Parks and Recreation Director Dockter recommended that the Facility Use Policy be amended to acknowledge one (1) community -based in -house programming organization for Priority Level II (Recognized Community Youth Organization). Should this revision take plan, an application process would be needed to assure the group chosen for this priority level by the City meets the designed criteria of the policy. Mayor Bailey stated that each high school develops their own feeder program, noting that he heard of kids in Woodbury that were getting cut from traveling team opportunities because they were not playing in the correct feeder program. Parks and Recreation Director Dockter stated that there are five (5) Athletic Associations, which include the Cottage Grove Athletic Association, Woodbury Athletic Association, Newport Athletic Associated and the St. Paul Park Athletic Association, and all were community -based associations, so you played wherever you reside, and when they scheduled facilities, they would get facilities in their area. With the East Ridge Athletic Association, we are splitting up kids based on school zones. Parks and Recreation Director Dockter stated that parents are being forced to make a decision when their kids are five (5) years old where to play when you do not know which high school they will go to. Council Member Thiede stated that he would support having community -based program, having one (1) association manage the in -house program, then if they want to play, they play for the CGAA or the WAA, and they feed into schools. Parks and Recreation Director Dockter reviewed the following options • Leave the policy as is. If we were going to do something, now is the time. The longer we wait, the more established the Association gets, the broader their programs, the bigger they get, and the harder it is to reverse an action taken. • This option is to amend the facility use policy to provide for one (1) recognized community -based organization in Priority III: Recognized Community Youth Organizations level. This organization would have to meet specific criteria and provide certain programming that every citizen would have the opportunity to play, etc. The other organization would still have the right to exist but they would a Priority IV, Cottage Grove Resident Group which means they would not get Cottage Grove City Council May 18, 2011 Regular Meeting 1 priority in scheduling for use of facilities and there would be extra fees associated. Council Member Olsen asked if the City of Woodbury would have a comparable facility use policy. Parks and Recreation Director Dockter confirmed that the facilities use policies are currently almost identical and they would continue to be. Council Member Thiede expressed concern that the CGAA would not be designated as the Priority III, recognized community youth organization. Parks and Recreation Director Dockter responded that he has had discussions with the City Attorney and we have to give all organizations an equal opportunity to accept applications to be within that priority level. We cannot just select an Association or a group for that level; we have to have criteria designating who fits into each category and then give them an opportunity for other group to come in. Council Member Lehrke stated that the ERAA does not accept people from anywhere, they only accept those within the ERAA school boundary. Council Member Olsen stated he likes what Parks and Recreation Director Dockter has come up with, it is reasonable, fair, shows that we are not creating a hardship necessarily for anybody but we are beholden to the taxpayers of the City of Cottage Grove to a large extent and we are going to be receptive to their needs first. Mayor Bailey stated that in the City of Woodbury draft policy under Priority II, Public and Private Schools it says that schools must be located within the City of Woodbury and there must be an agreement in place that provides the City with the reciprocal use of the school's athletic facilities. It also states, if no agreement is in place, the school would be placed in Priority IV. He stated that the younger kids who are not in a school in Woodbury but are in the area that would eventually go to East Ridge High School they would want to join the ERAA because that is where the kids are in the feeder system. Parks and Recreation Director Dockter stated that he did not review that particular item so he cannot comment right now. Mayor Bailey stated that when Woodbury brought this up at the joint meeting, he was fine with the approach that we were taking. It is sad that we have the third association and he appreciates that Parks and Recreation Director Dockter is getting ahead of the issue because the issues in Woodbury would become an issue as we grow in the East Ravine. Cottage Grove City Council May 18, 2011 Regular Meeting 11 Parks and Recreation Director Dockter clarified that this is going to focus on in- house recreational programming, and traveling programs would still exist. The reason being, that by the time you are of age to travel and play sports at a competitive level, you probably know what your future is and where you want to go to school. The real concern is the t -ball and peewee levels where kids do not care where they go to school, they just want to play baseball or hockey and play with the kids in their neighborhood as opposed to where you might go to school some day. Council Member Olsen stated that the only thing he would add is that it is critical that the cities of Cottage Grove and Woodbury policies are the same. Parks and Recreation Director Dockter stated that the School District needs both cities to be in support of this too because they would have to jump on board as well B. 2012 & 2013 Budget Finance Director Roland highlighted the contents of her memorandum included in the Agenda Packet, which addressed the Council's budget direction from the 2011, a chart reflecting the tax levy (after fiscal disparities), tax capacity value, tax rate, value of "average home ", City taxes, and percent of tax change. She noted that the chart reflects Washington County's "first glance" estimate of the payable 2012 tax capacity value and a decline of 1.7% for residential and commercial /industrial properties. If the prediction is accurate, and the City use the 2012 levy as presented in the 2011/2012 budget, the taxes paid by an "average" property would remain at (effectively) the same level. She noted that the City Council might wish to continue using this target for the 2012/2013 Budget. Finance Director Roland reviewed the tax rate comparison of the 36 metro cities with populations noting that the urban tax rate increased 8.05% from 35.40 to 38.25, which means we are now below the average of 38.92. Finance Director Roland highlighted the General Fund Levies and Debt Levies and stated that for 2012, the General Fund levies include $10.3 million for the General Fund; $584,000 for Market Value Homestead Credit (MVHC) unallotment; and $106,000 for the EDA which is incorporated into our General Levy. She stated that the Debt Levies for 2012 totals $12.294 million and includes the Ice Arena expansion bonds, Public Safety /City Hall building bonds, and pavement management projects. Mayor Bailey commented that a couple of years ago, the City decided not to count on receiving MVHC into the future. Finance Director Roland stated that we show it as part of our levy even though we know we are not going to get it back. The City Council then reviewed the general government, equipment replacement plan, the interest rates, transfers from the general fund, revenues and expenditures, Cottage Grove City Council May 18, 2011 Regular Meeting 1 potential administrative charge increase, impact of health insurance costs, decreased costs in fleet due to some personnel changes and fuel. Finance Director Roland commented that they have identified at least $51,000 in reductions to the proposed 2012 budget from what they originally proposed in 2011. Finance Director Roland stated that the question before you this evening was whether the City Council was comfortable with the levy rate for 2012, which is actually one -tenth of one percent of the general fund from 2011 to 2012. Any change would be in the area of debt service and it would not be attributable to anything more than if we needed to bond for the pavement management project for 2010 and 2011. Council Member Lehrke stated he would like to see the levy rate percentage remain the same or go down to zero, especially if we are only talking about $50,000. He stated he would like to find $50,000 to cut from the proposed budget. Finance Director Roland stated that should we decide to hold a voter referendum in the fall on the community center and we decide to bond for $8 million, it would cost approximately $500,000 to $600,000 per year and add an additional $60,000, which would reflect an increase our tax rate to 41.26 %. Council Member Olsen stated that he agrees with Council Member Lehrke's viewpoint of keeping our tax rate increase at zero. He stated that he knows that nobody likes to use equipment certificates for the Public Safety /City Hall but maybe that is something that we need to think about at some point. The Council briefly discussed the option of using equipment certificates for the purchase of some of our equipment for the Public Safety, the contribution to the EDA, suggestion to add park improvements to the referendum, the police officer versus the paramedic program, and the reduction of our levy to a zero percent increase and the permit/fees for the new Public Safety /City Hall facility. City Administrator Schroeder stated that the City's new Director of Parks and Recreation would be going through the budget and put together some opportunities for changes. Council Member Thiede stated that if we do not give you an affirmation on this tonight how is it going to affect the budget process. Finance Director Roland stated she would talk to departments tomorrow and tell what we get from Council and that they need to prepare their budget but to show what they need. Cottage Grove City Council May 18, 2011 Regular Meeting 113 Mayor Bailey stated he would like to see what the absolute necessities are, where we have issues or an area that we need to address that maybe we have not been addressing. We are kind of at that juncture where we have not done anything with the staffing levels. He stated that he is not saying that we need to go out and hire a bunch of people, but he would like to know whether we are operating in a system where we do not necessarily need this person over here, but we certainly need this person over there. Council Member Olsen stated that we now have a new Economic Development Director who will be starting soon. In her capacity, she would be able to give you an objective viewpoint of her department. Council Member Olsen stated that he absolutely wants to know if a department feels a need for a different staffing model, a different way of doing things. If we need to reconfigure the paramedic program, we need to know that. If there is something that needs to be addressed in public works, we need to know that. We cannot make good decisions without good information so he does not want anybody to feel like they cannot ask for something. City Administrator Schroeder stated that for the two new City Council members, when you talk about budget direction in the good old days, the budget direction was growth plus inflation. If we had 2% growth and 4% inflation, we would end up with a 6% mark above what we had done the prior year. Two (2) years ago, that changed to if the average homeowner received a 7% reduction in taxable market value, they should also receive a 7% reduction in whatever they paid in property tax. Council Member Lehrke stated that when your tax payment was going up, it was because your home value was going up. Now, your home value is going down, but the tax remains the same. If your home value goes down by 2 %, then the tax should also go down 2 %. When your tax went up by 1 % it is because your home value went up by 11%. He noted that what really frustrates people is when they lost $10,000 in market value but their property tax went up by $6.00. Council Member Olsen stated that to your point, even if that tax number went up and it is attributable to the School District, they still blame it on the City. Council Member Lehrke stated that it would be nice if we could say that we kept it the same, it was not the City. Mayor Bailey stated that is fine, we may end up doing that, but it will not matter, because when people look at their tax statement, they look at the bottom to see if their total tax goes up or stayed the same. Council Member Olsen stated that for tomorrow, he would hope that we could express to the staff that this is the ballpark, it could change a bit either way, but Cottage Grove City Council May 18, 2011 Regular Meeting 114 make sure that you do your best with what you have to have because there is recognition on the Council that you have tightened your belt very tight. Council Member Olsen asked if that gives staff what they need and Finance Director Roland responded affirmatively. Mayor Bailey asked if we have some numbers on what it will cost to finish Hamlet Park. As soon as we started talking about a community center, now everybody wants something. It has been unbelievable the number of telephone and emails he has received. The soccer division would like us to build a soccer dome and are willing to contribute $1 million plus towards such a project. Parks and Recreation Director Dockter stated he has a report from about five (5) years ago where it was estimated that it would cost about $2 million to finish Hamlet Park. Council Member Thiede stated that Hamlet Park really depends on selling the property next to Oakwood Park. Council Member Lehrke stated that the plan has always been that we would take that money and use it for Hamlet Park improvements. 13. WORKSHOP SESSION - CLOSED TO THE PUBLIC —None. ADJOURNMENT MOTION BY COUNCIL MEMBER PETERSON, SECONDED BY COUNCIL MEMBER OLSEN, TO ADJOURN THE REGULAR MEETING AT 8:23 P.M. MOTION CARRIED. 4 -0. Prepared by, Caron M. Stransky City Clerk Attachment/1