HomeMy WebLinkAbout2007-01-17 MINUTESREGULAR MEETING
COTTAGE GROVE CITY COUNCIL
January 17, 2007
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 minutes per issue.
Present: Mayor Sandy Shiely
Council Member Myron Bailey
Council Member Mark Grossklaus
Council Mernber-Elect Fred Luden
Council Member Pat Rice
Also Present: Ryan Schroeder, City Administrator
Howard Blin, Community Development Director
Les Burshten, Public Works Director
Zac Dockter, Ice Arena/Recreation Manager
Ron Hedberg, Finance Director
Jennifer Levitt, City Engineer
Corrine Thomson, City Attorney
Brian Wilson, Police Captain
Mayor Shiely opened the Open Forum at 7:15 p.m.
There being no additional speakers, Mayor Shiely closed the Open Forum at 7:16 p.m.
CALL TO ORDER
The City Council of the City of Cottage Grove, Washington County, Minnesota, held a
re�ular meeting on Wednesday, January 17, 2007, at the Cottage Grove City Hall, 7516
80 h Street South. Mayor Sandy Shiely called the meeting to order at 7:30 p.m.
ROLL CALL
Present: Mayor Sandy Shiely
Council Member Myron Bailey
Council Member Mark Grossklaus
Council Member Fred Luden
Council Member Pat Rice
Regu/ar Meeting — January 17, 2007
Cottage Grove City Council
Page 2
Also Present: Ryan Schroeder, City Administrator
Howard Blin, Community Development Director
Les Burshten, Public Works Director
Zac Dockter, Ice Arena/Recreation Manager
Ron Hedberg, Finance Director
Jennifer Levitt, City Engineer
Corrine Thomson, City Attorney
Brian Wilson, Police Captain
Mayor Shiely presided over the meeting.
ADOPTION OF AGENDA
MOTION BY BAILEY, SECONDED BY RICE, TO APPROVE THE AGENDA AS
SUBMITTED. MOTfON CARRIED 5-0.
PRESENTATIONS
None.
APPROVAL OF MINUTES
A. November 15, 2006, Reaular Meetinq
Mayor Shiely stated that the minutes stand approved as presented.
B. December 4. 2006, Special Meetinq
Mayor Shiely stated that the minutes stand approved as presented.
C. December 6, 2006, Reaular Meetinq
Mayor Shiely stated that the minutes stand approved as presented.
D. December 13, 2006, Sqecial Meetinq
Mayor Shiely stated that the minutes stand approved as presented.
E. December 20. 2006, Regular Meetinq
Mayor Shiely stated that the minutes stand approved as presented.
F. Januarv 3, 2007, Reaular Meetinq
Mayor Shiely stated that the minutes stand approved as presented.
Regular Meeting - January 17, 2007
Cottage Grove City Council
Page 3
CONSENT CALENDAR
Council Member Bailey pulled Item H and said he wished to recognize some donations
being given to the City of Cottage Grove for an employee party from Welch Village, the
Science Museum of Minnesota, Sunsets of Woodbury, Wild Mountain, Carlson Auto,
Mississippi Dunes, Tires Plus, Treasure Island Casino, Minnesota Wild Hockey, and the
Park Grove Pet Hospital.
MOTION BY RICE, SECONDED BY GROSSKLAUS, TO:
A. ACCEPT AND PLACE ON FILE THE FOLLOWING MINUTES: NONE SUBMITTED.
I. PUBLIC WORKS COMMISSION MEETING MINUTES FROM DECEMBER
11, 2006.
B. ADOPT RESOLUTION NO. 07-007, A RESOLUTION ADOPTING THE
WASHINGTON COUNTY ALL HAZARD MITIGATION PLAN
C. ADOPT RESOLUTION NO. 07-008, A RESOLUTION APPROVING THE PLANS
AND SPECIFICATIONS AND ESTABLISH A MARCH 1, 2007, BID DATE FOR THE
80 STREET BITUMINOUS TRAIL RECONSTRUCTION PROJECT.
D. ADOPT RESOLUTION NO. 07-009, A RESOLUTION APPROVING THE PLANS
AND SPECIFICATIONS AND ESTABLISH A MARCH 1, 2007, BID DATE FOR THE
2007 SEAL COAT PROJECT.
E. ADOPT RESOLUTION NO. 07-010, A RESOLUTION SETTING A FEBRUARY 15,
2007 BID DATE FOR THE HAMLET POND EXPANSION PROJECT.
F. ADOPT RESOLUTION NO. 07-011, A RESOLUTION AUTHORIZING THE PUBLIC
WORKS DEPARTMENT TO APPLY FOR A"MINNESOTA SAFE ROUTES TO
SCHOOL GRANT" ($85,002.65) FOR THE INSTALLATION OF A BIKE PATH ON
THE SOUTH SIDE OF 65 STREET SOUTH FROM HINTON AVENUE SOUTH TO
THE COTTAGE GROVE ELEMENTARY SCHOOL.
G. ADOPT RESOLUTION NO. 07-012, A RESOLUTION AUTHORIZING THE PUBLIC
WORKS DEPARTMENT TO APPLY FOR A"MINNESOTA SAFE ROUTES TO
SCHOOL GRANT" ($71,279.00) FOR THE INSTALLATION OF A SIDEWALK ON
THE SOUTH SIDE OF 79 STREET FROM HEMINGWAY AVENUE SOUTH TO
HINTON AVENUE SOUTH.
H. ADOPT RESOLUTION NO. 07-013, A RESOLUTION ACCEPTING THE
DONATIONS FOR THE CITY OF COTTAGE GROVE HOLIDAY PARTY.
I. AUTHORIZE THE PURCHASE OF VEHICLES BUDGETED IN THE 2007 BUDGET
FOR THE POLICE AND FIRE DIVISIONS TOTALING $133,634.00 THROUGH THE
STATE OF MINNESOTA COMPETITIVE BID AWARDED TO ELK RIVER FORD.
J. PASS ORDINANCE NO. 810, AN INTERIM ORDINANCE ESTABLISHING A
MORATORIUM ON THE INSTALLATION, ERECTION, CONSTRUCTION,
REPLACEMENT OR IMPROVEMENT OF STATIC OR CHANGING ELECTRONIC,
DIGITAL, VIDEO, DISPLAY SIGNS, BILLBOARDS, BILLBOARD NETWORKS,
FLASHING, MOTION, ANIMATED, CHANGEABLE COPY AND ILLUMINATED
SIGNS IN ALL ZONING DISTRICTS. THE MORATORIUM PERIOD WILL EXPIRE
ON MAY 30, 2007 OR SUCH EARLIER DATE AS MAY BE FURTHER ADOPTED
BY ORDINANCE.
Regular Meeting — January 17, 2007
Cottage Grove City Council
Page 4
MOTION CARRIED 5-0.
RESPONSE TO PREVIOUSLY RAISED OPEN FORUM ISSUES
None.
PUBLIC HEARING
None.
BID AWARDS
A. Consider Authorizina a Construction Contract for Remodeling of Citv Hall
Mayor Shiely requested a report from the Community Development Director.
Howard Blin, the Community Development Director, reported that the Recreation
DepartmenYs move from City Hall to the Ice Arena provided an opportunity to relocate the
administration conference room into the vacated space and utilize the current administration
conference room for Investigations Division of the Police Department, freeing up space for
an interview room. Blin noted that the City received two construction bids and
recommended that the City Council authorize staff to enter into a construction contract with
Karkella Construction for $30,947.00, which includes necessary electrical work, plumbing
repair, and carpet patching.
Mayor Shiely commented that a Police Department conference room would make good use
of the available space.
MOTION BY BAILEY, SECONDED BY GROSSKLAUS, TO AUTHORIZE STAFF TO
ENTER INTO A CONTRACT WITH KARKELLA CONSTRUCTION FOR $30,947.00 FOR
THE CITY HALL INTERIOR REMODELING PROJECT. MOTION CARRIED 5-0.
UNFINISHED AND NEW BUSINESS
A. Consider Establishinq a Project Team for the Ice Arena Expansion Project and
Consider Authorizing Advertisement for a Reauest for Proqosal from Construction
Management Services.
Mayor Shiely requested a report from the Parks and Recreation and Ice Arena/Recreation
Manager.
Ice Arena/Recreation Manager Zac Dockter gave a presentation on the proposed project
citing the following misconceptions:
1. Ice Arena onlv benefits hockev players.
• Public skating sessions and opportunities for the entire public to recreate at the
facility.
Regular Meeting - January 17, 2007
Cottage Grove City Council
Page 5
• Offers skating lessons and programs for all ages and abilities.
• Birthday parties, broomball, boot hockey, and other rental events are very
popular.
• Spectator events allow the public to enjoy the facility without being on the ice.
2. Verv small percentage of the communitv benefits.
• Majority of residents have or will benefit at some point in their lives.
• Local economy benefits from the additional traffic of visitors brought into the
community to use the ice arena.
• Year-round recreational programming enables the residents of the community to
live active, healthy, and social lifestyles.
3. Citv subsidizes more than other comparable activities.
• Ice is rented out at $160 per hour.
• Every group is required to pay this fee regardless of affiliation.
• Compare that to park facilities where school and athletic association groups do
not pay to use municipal facilities.
• Hockey and skating programs are actually subsidized less than other recreational
activities such as baseball, soccer, softball, etc.
4. It would be more beneficial to demolish the current arena and rebuild in a new
location
• Existing building was constructed in 1974.
• The current building has a lot of character.
• Recent upgrades to the facility have made it a fantastic arena that is unique to
most new arenas throughout the State.
• It is at a prime location at 80 Street and the high school campus.
The Ice Arena/Recreation Manager stated that the planning process includes researching
ice recreational needs of community, construction and cost analysis, meet with user groups
to determine needs (CGAA and School District), and produce conceptual designs. He then
displayed the conceptual, elevation, and floor designs and layouts noting that construction
estimates ranged from $4.5 to $6 million, depending on construction timing, development
costs, and contingency. Optional improvements to the existing facility may include:
$200,000 for fire suppression; $20,000 for the replacement of lighting; $100,000 for
dehumidifier replacement and $80,000 for a new ice resurfacer.
The Ice Arena/Recreation Manager noted the budget would include a rate adjustment from
$160 per hour to as much as $225 per hour for prime time, a required rental/lease
commitment from the School District and athletic association, a City subsidy of no more
than $150,000 per year, and potential sponsorships.
The Ice Arena/Recreation Manager then identified the projected construction timeline:
• January 17, 2007 Council approval to solicit construction manager request for
proposals.
• February 21, 2007 Council awarding of RFP for construction manager
• March 1, 2007 Solicit RFP's for architecture and engineering
• April 4, 2007 Council award RFP's for architecture and engineering
Regular Meeting — January 17, 2007
Cottage Grove City Council
Page 6
• September 1, 2007 Construction start date
• September 1, 2008 Open facility
Dockter introduced Gary Sova, President of the Cottage Grove Hockey Association, who
thanked the Council for the opportunity and stated he was in his third term as President,
appreciated the Council's consideration and the work done to date by the City to determine
what would make best sense for the arena. He said he supported the proposal and looked
forward to having it move forward.
Mayor Shiely thanked Dockter for his presentation and comments.
Ron Hedberg, the Finance & Administrative Services Director, outlined financial
assumptions. He stated that the $261,000 deficit would impact the average Cottage Grove
taxpayer (based on a$230,000 home) by $21 per year.
Revenue
Long-term commitment revenue
Rentals
Total projected revenue
Exqenditures
Operating expenses
Debt service ($6.5 million @ 5.5% over 20 years)
Total projected expenditures
Total
$610,600
286,750
$ 821,100
538, 500
544, 000
1,082,500
$ (261,000)
The Finance & Administrative Services Director reviewed the construction manager RFP
selection time frame:
• January 17
• January 20
• February 7
• February 16
• February 21
Approve the Request for proposals
Site tour
RFP due date
Interview with the project team, and
Council selection and award.
Hedberg then identified the recommended "project team" as: City Administrator, Public
Works Director, Parks/ Recreation and Ice Arena Manager, City Engineer, Chief Building
Official, two (2) City Council Members, and representatives of the CGAA and School
District. The team would manage the process, review materials, review the uses and needs
of the facility as it moves forward and award contracts through the billing phase.
The Mayor opened the floor for Council discussion.
Council Member Luden asked whether there was an opportunity to refinance the bonds
after about five (5) years. The Finance Director responded that the School Board had not
yet formally discussed or made any long-term financial commitments. He said the base rate
Regular Meeting - January 17, 2007
Cottage Grove City Council
Page 7
would be set, with known costs on year one through 20 and the hourly rate portion would be
open for annual adjustment.
Mayor Shiely said a special meeting between the City Council and District 833 School
Board is February 1 at 5:30 p.m. at City Hall. She then nominated Council Members Rice
and Bailey as the City Council representatives on the project team.
Council Member Bailey asked for clarification as to whether Mr. Sova, the existing
President, would be the Cottage Grove Athletic Association's representative on the team.
Mr. Sova stated that he would represent the hockey association on the team.
MOTION BY LUDEN, SECONDED BY BAILEY, TO ESTABLISH A PROJECT TEAM FOR
THE ICE ARENA EXPANSION PROJECT THAT WOULD ALSO INCLUDE COUNCIL
MEMBERS BAILEY AND RICE AS REPRESENTATIVES OF THE COUNCIL, THE
CURRENT COTTAGE GROVE HOCKEY ASSOCIATION PRESIDENT, GARY SOVA, AND
THE YET-TO-BE-NAMED REPRESENTATIVE OF THE SCHOOL DISTRICT. MOTION
CARRIED 5-0.
MOTION BY BAILEY, SECONED BY RICE, TO APPROVE THE REQUEST FOR
PROPOSAL (RFP) FOR CONSTRUCTION MANAGEMENT SERVICES FOR THE
DESIGN AND CONSTRUCTION OF AN ICE ARENA MANAGEMENT PROJECT AND TO
OBTAIN PROPOSALS BY FEBRUARY 7, 2007. MOTION CARRIED 5-0.
B. Receive Information and Provide Feedback on the Proqosed Plan for Pine Tree
Vallev Improvements.
Mayor Shiely requested the City Engineer's report.
The City Engineer, Jennifer Levitt, noted that the City has been working to improve storm
water quality and increase maintenance activities over the past couple of years, due to
NPDES requirements. She stated that the City had been seeking to make storm water
ponds an amenity within the community, not just an area to treat storm water. The City
Engineer stated that the most recent project completed was the Highlands Pond
Improvement Project, with trail improvements, landscaping, and tree planting. She gave an
overview and then displayed the before and after photos, to reflect the feel for what the park
looked like, and said she looked for input from the Council regarding the improvements.
Mayor Shiely inquired about access to the parking lot. The City Engineer responded that
access would be off 80 Street and conducive to an 8-12 car parking lot, explaining that
excess fill would be placed on the site to elevate and make a flat area for a parking lot,
providing a cost savings to the City.
Council Member Bailey inquired whether the final plan be to extend across 80 and go
across onto the other side. The Parks and Recreation and Ice Arena Manager responded
that there were grading issues and the plan was currently just in concept form.
Regular Meeting — January 17, 2007
Cottage Grove City Council
Page 8
Council Member Bailey then asked whether any thought has been given to looping from the
residential area and reconnecting the trail, citing the example of the pond at Hamlet. The
City Engineer responded that it has not been discussed to date but could be discussed.
The Parks and Recreation and Ice Arena Manager added that there would be room to make
a loop, sidewalk on 80' Street trail, Jamaica sidewalk, and perhaps to the west.
Council Member Bailey stated he preferred Concept B, citing the preference for a parking
area.
Council Member Rice inquired as to what the access to the ponds would be if landscaping
were completed. The City Engineer responded that there were right-of-way easements and
the plan would be to enter on the backside of the pond, rather than going down steep
slopes.
Council Member Rice then asked for quotes. The City Engineer responded that the plan
was in the conceptual phase and preferred to get feedback from Council first but quoted
$200,000, with $130,000 for landscaping. She said the critical number would be cubic
yards moving material from the pond.
Mayor Shiely expressed concern about lighting. The City Engineer responded that lighting
expectation would be 1-2 lights with a down shoebox style and shields on the residential
side, to ensure the foot candles did not get too high and impact residents. The Police
Captain reaffirmed that he did not see a problem regarding public safety with a parking lot in
the area.
Council Member Grossklaus commended staff and said the concept was great, was not
concerned with criminal problems in the area, and said it would benefit neighbors. He said
he would like to see numbers and looping would be great if not too expensive.
Mayor Shiely agreed with parking that would access, stating that she preferred Concept A,
as the parking lot would be less visible driving down 80 Street and liked the round area.
She said, however, that she would be open to further discussion and/or perhaps a
combination of the concepts.
Council Member Grossklaus suggested that perhaps Concept A could have more
vegetation near the parking lot but expressed concern about maintenance with flowers.
Council Member Bailey also noted that Concept B looked easier to navigate than Concept
A, but did like the round overlook idea of Concept A.
C. Consider Adoptina a Resolution Callinq for a Public Hearinq on theTH61/Jamaica
Avenue Roundabout Proiect and Provide Direction on the Landscaqinq Plan Portion
of the Proiect
MOTION BY GROSSKLAUS, SECONDED BY BAILEY, TO ADOPT RESOLUTION
NO. 07-014, A RESOLUTION CALLING FOR A PUBLIC IMPROVEMENT HEARING FOR
THE TH61/JAMAICA AVENUE ROUNDABOUT PROJECT FOR FEBRUARY 7, 2007.
Regu/ar Meeting — January 17, 2007
Cottage Grove City Council
Page 9
MOTION CARRIED 5-0.
Mayor Shiely requested the City Engineer's report.
The City Engineer displayed an architectural drawing of the retaining wall and decorative
wall element. She then displayed photos of concrete material examples and said the plan
was to incorporate flowerbeds in the median area between the two roundabouts on Jamaica
Avenue.
Council Member Rice inquired whether MnDOT staff was aware of the project, noting the
need for established regular litter pick-up of the area. The City Engineer responded that
MnDOT was informed, stating that they would not maintain the area, and maintenance-
friendly vegetation would be preferred.
Mayor Shiely said there was a need to maintain a welcoming first-rate look without going
completely overboard on the cost. She preferred the Cottage Grove name on the wall. The
City Engineer responded that MnDOT had reviewed the plan, so negotiations would be
needed to add the name.
Council Member Bailey inquired about irrigation. The City Engineer responded that there
would be a water line installed to the center of the roundabouts, to ensure successful
takeoff of the plantings, which would reduce the cost and eliminate the need to operate a
water truck.
Council Member Bailey then asked about lighting. The City Engineer responded that there
would be lighting and a Council preference on height would be helpful. She said the height
of the pole would be 30 feet.
Mayor Shiely commented that she did not picture the site as being modern and would prefer
a homey style, with Council consensus. The City Engineer responded that she would be
happy to go back, explain to the architects how Council had described the preferred lighting,
and find something that fits their idea better.
Council Member Luden suggested that the energy cost be included in the lighting
consideration and decision.
Council Member Rice asked about the cost difference between lighting heights. The City
Administrator responded that it would nearly double.
Council Member Bailey commented that he preferred the country feel, noting that staff did a
great job on the landscape design.
Council Member Grossklaus inquired about the date for the public roundabout discussion.
The City Engineer responded that there would be an open house on January 30 from 6-8
p.m. at the Public Works facility.
Mayor Shiely reported that TV Channel 9 had done a roundabout segment and reported
Regular Meeting — January 17, 2007
Cottage Grove City Council
Page 10
that roundabouts cut accidents by 80%.
With no further feedback, Mayor Shiely thanked the City Engineer.
RESPONSE TO PREVIOUSLY RAISED COUNCIL COMMENTS AND REQUESTS
None.
COUNCIL COMMENTS AND REQUESTS
Council Member Bailey reported that there had been great success following the article on
the Strawberry Fest and the location for the next committee meeting on Monday (first and
third Monday beginning in February) was changed to the Cottage Grove Bingo Hall because
of the great response. He said a band was now booked for the Festival on Saturday Night
and people from areas other than Cottage Grove were becoming involved. Mayor Shiely
added that the Festival was a good way for new residents to meet other people.
PAY BILLS
MOTION BY RICE, SECONDED BY GROSSKLAUS, TO APPROVE PAYMENT OF
CHECK NUMBERS 148456 TO 148635 TOl'ALING $586,519.24. MOTION CARRIED 5-0
WORKSHOP SESSION — OPEN
A. Citv Council Goals
The City Administrator cited and described the 2007 Council strategic goal settings:
Bond Rating Analysis. Higher bond ratings are a signal to the community of fisca/ health
and stability and a signal to the investor in municipal debt of security in the investment.
Increasing bond ratings can be achieved by: (1) Attracting investment to the Community
including growing commercial and industrial base and high value homes which typically
increase family/household incomes and the real property tax base; (2) reducing relative
debt burden including structuring future debt within affordability windows and ensuring
policy and spending decisions that provide the opportunity to reduce relative debt over time,
ensuring achievement demonstration of debt and fiscal goals; (3) carefully weighing
alternatives to growing operating cost increases and ensuring that capital acquisitions
(infrastructure, etc.) are efficient/y utilized and provide economic return; and (4) emphasis
on long term, strategic, and fiscal planning with ability to demonstrate correlation between
plan and reality.
The City Administrator commented that the City should compete well for a rating increase
and AA cities were used to identify measures that Mooty looked at, noting that Cottage
Grove had a higher than average family income. He suggested that the Council goal be to
increase fund balances in the General Fund, also noting that it was time for another rating
increase.
Regu/ar Meeting — January 17, 2007
Cottage Grove City Council
Page 11
Housin�Values. Housing product of greater taxable market values than the existing
average market values generally will result in a revenue stream beyond expenditures
incurred by the City to provide services to the housing unit. During the period from 1980 to
2000, in total, Cottage Grove had provided for housing construction that resulted in the local
housing value mean dropping below the Metro Area mean for new construction. The result
was a further erosion of taxable market values relative to peers. Council direction has since
changed, which also has begun to turn the year 2000 situation around.
The City Administrator commented that county tax was related to market values. Mayor
Shiely said Washington County had tied for second, following first-place Carver, and a low
tax rate could be maintained with higher assessed values. The City Administrator further
stated that the Urban Land Institute Report showed in 1980 that Cottage Grover average
house values were above the mean but 20 years later dropped below, not catastrophic but
should be noted. He said Council had looked at the issue more intensely the last few years
and construction market values were starting the change the trend. The City Administrator
suggested that Council continue on the path and target second- and third-tier tiered homes.
Citv Expenditure Comqarison. Spending is monitored in comparison to peer communities.
The State Auditors Office provided spending comparisons for some municipal spending
categories, which revealed: (1) General Government spending was very moderate in
comparison to peer communities and the level of spending remained consistent since 2001
and probably in prior periods as well; (2) Public Safety spending rose along with population
growth but lagged spending increases within peer communities over 2001-2005 and public
safety outpaced growth; (3) Public Works spending rose faster in Cottage Grove relative to
peer community spending, with note that the spending included an increased emphasis on
pavement maintenance and should not be perceived as an inappropriate rate of growth,
additional studies could be required, and park maintenance and public works utility
enterprise spending was not included within the analysis; and (4) Per capita spending
emulated Council desire to increase public safety spending commensurate with population
increases and allocated dollar resources in areas visible to the Community (maintenance of
infrastructure and public spaces).
The City Administrator commented that a reasonable city comparison now pegged Cottage
Grove in the 20,000-60,000 population range, noting that general government spending was
among the lowest at 10%. He said as the population has grown so, too, has spending but
the City is probably where it ought to be. The City Administrator stated that Public Works
had grown and Council direction has been to allocate funds for �mprovements.
Tax Rate Comqarisons. Cottage Grove's first challenge is to grow tax capacity beyond the
cost to deliver services to the taxpayer and, doing so, should allow the City to lower its tax
rate relative to its peer communities. The tax rate analysis showed some positive result
over the past ten years, though slow, and the City moved from 6 to 8 out of 35. It is
assumed that Council will want to push for continued improvement in this area.
The City Administrator commented that the City was not the highest taxing city but far from
lowest (6 of 35 in 1997 and now 8 of 35) which he suggested the City pay attention to.
Regular Meeting — January 17, 2007
Cottage Grove City Council
Page 12
Fiscal Disparities. Cottage Grove received significant Local Government Aid transfer
payments from the State in past years, which has been eliminated as a revenue source.
The �ity continues to be a significant beneficiary of the tax base sharing program known as
fiscal disparities.
The City Administrator commented that attention needs to be paid to the tax base sharing
which the Legislature denotes annually and there ought to be a public policy statement to
ensure equality, not just particular communities reaping the awards, such as Bloomington.
Health Insurance Snapshot. The health insurance benefit program has been a significant
burden upon City resources and City employees, which has required aggressive action by
Council and significant cooperation from City employees and employee groups. The result
has been positive and continued active management of the program is anticipated in the
future. The City has been at the leading edge of communities transitioning to HAS product
within the Twin Cities with 48% enrollment of those eligible in the third year of participation.
The City Administrator commented that the subject had been a struggle for 8-9 years and
staff would like to be fully covered. He said, to the credit of labor groups, many positive
changes were made, i.e., becoming the first city utilizing a health savings account system.
Fund Balance and Debt Historv. Council made a number of policy improvements over the
years in order to actively manage debt and grow fund balances. The result has been a
positive fiscal picture in spite of low tax capacities and other challenges such as loss of
Local Government Aid. The City Administrator proposed efforts to continue trending
upward by adoption of specific targets, targef dates, and an action plan to get to those
targets.
The City Administrator commented that progress had been made but not as much as he
would have liked. He said his personal goal would be to pay everything in cash, and the
City continues in the right direction.
The Finance Director added that a new fund balance policy was created, where any
amounts above what was needed for contingencies got transferred, which should serve the
City well in the future.
Retail Attraction Strategies. Council suggested a desire to discuss enhanced efforts to
attract certain types of retailers or specific "name"retailers, and the hope was to receive
additional Council specificity, goa/s, and methods.
The City Administrator then requested Council feedback on the goals.
Mayor Shiely responded that she would prefer that "Continue to" be eliminated from each
goal and just simply state the goal, i.e., "Strive toward fiscal stability, etc." She also stated
that she did not see anything in the goals related to securing bonding for entryway to
Cottage Grove, which would be something to continue this year.
Regu/ar Meeting — January 17, 2007
Cotfage Grove City Council
Page 13
The City Administrator reported that he had met with the County engineering staff to go
forward with attempts at State funding earlier, rather than later, i.e., land north and west of
19, and there being a need to know how to fix the highway issues and do some preliminary
design analysis and costing. He also stated that the Burlington path would be on the
agenda.
Mayor Shiely inquired about (A.2.g.) "Long range versus short range sanitary extension,
neighborhood impacts." The City Administrator responded that staff was looking at land to
acquire for the complex.
Mayor Shiely then inquired about (A.6.g.) "G-Will Shopping Center/All Saint/Armory." The
City Administrator responded that G-will was sold to United Properties and long-term plan
was being considered.
Fiscal Stabilitv
It was Council consensus that Fiscal Stability remain the same.
Commercial and Industrial Development
The Community Development Director stated that the City needed to be attentive to the
marketplace and Cottage Grove was not in the same position such as Woodbury, with a
retail center off a main regional thoroughfare. He cited potential retail space in areas such
as Gateway 450,000 square feet, Jamaica 500,000 square feet, west side of 61 in Gateway
Northwest area 160,000 square feet, Cedarhurst 200,000 square feet in the next 20 years.,
and Cottage View 700,000 square feet. He said Target and brokers are interested in
Cottage Grove and are watching the City's housing growth.
Mayor Shiely reported that Walgreen has stated one of their top stores in the region was in
Cottage Grove.
The Community Development Director stated that the City would see continued retail
expansion and he hoped to hear Council's expectations and wishes of what they wanted to
see.
Mayor Shiely commented that Cottage Grove does not get the businesses in strip malls that
other cities, such as Woodbury, get (coffee shops, bagel places, florists, and gift shops).
She said, instead, Cottage Grove gets pizza, tax, and nail establishments repeated at
various strip malls and expressed hope that, as a female shopper, unique, larger square
footage shops (Michaels craft store, Barnes and Noble) placed in the strip malls.
Council Member Bailey stated that the last chance as described by Mayor Shiely would be
the Cottage View area. He said development would need to create retail synergy for such
shops as those to come together in one area and he would want to see in 2007 what the
architectural standards were going to be. Council Member Bailey cited the Mendota
Heights mall that received an award for its design and is where Comforts of Homes has
their o�ces.
Regular Meeting - January 17, 2007
Cottage Grove Ciry Council
Page 14
The Community Development Director reported that the Planning Commission would
discuss architectural plans and report back to the Council.
Council Member Bailey stated that there had been talk about working on the road through
on the west side of 61, especially if the interchange planning process there began. He said
something is needed in concrete regarding access from both Jamaica and County Road 19,
as well as conversations with 3M. The City Administrator responded that County Road 19
was part of the scope.
Council Member Bailey recommended being aggressive in seeking establishments such as
IHOP or renewing efforts to go after Baker's Square, or other family places where
breakfasts are served.
The City Administrator stated that the Frattalone site development would have a positive
impact on the value of the City-owned site and suggested hanging onto the land until
something had begun. He said Frattalone would be on the Council's February agenda.
Council Member Bailey suggested a Brunswick Family Center, movie theater, or Dave &
Busters, a family entertainment establishment, much like an adult version of Chunky
Cheese.
Mayor Shiely said Council would like to see staff be proactive and literally knock on doors,
calling Baker's Square, Dave & Busters, Barnes and Noble.
Council Member Rice said he would like to see businesses come into town where they are
destination points, citing Costco as an example, and speak with developers who hear the
City and pull in that type of preferred business. He suggested expanding where units can
be combined, to create larger areas for those types of businesses to come into.
The Community Development Director stated that employment growth ties into
redevelopment, and more daytime employment creates a need for more restaurants to
provide service over the lunch hour.
Council Member Grossklaus suggested hitting corporate campuses and pushing for
companies in the area to expand, look for new sites, and pull in new companies. He also
suggested making a pitch to Target to place corporate headquarters in Cottage Grove,
resulting in housing stock going up and a need for more high-end housing.
Mayor Shiely expressed her agreement with Council Member Grossklaus. The City
Administrator added that the area east of Jamaica and north of 95 is not huge (70-80
acres of usable land) but has potential for a different community feel.
Transportation and Transit
Mayor Shiely stated that those in the Redrock area have to start doing more lobbying and
suggested a goal that, as a community, the City make a concerted effort to state on a
Regular Meeting — January 17, 2007
Cottage Grove City Council
Page 15
regular basis the need to get a voice out there on Redrock. She said Cottage Grove could
urge the County to loosen funds for lobbying and enthusiasm is needed for the project,
which would have a positive outcome for the City. The City Administrator responded by
stating that Northstar in 1994 had appointed a high-level person, namely the Anoka Country
Deputy Administrator, to serve as staff person for that effort.
Mayor Shiely stated that if the City wants the Southeast Corridor to run on Cottage Grove
tracks from Chicago to St. Paul, then the City would need to send a letter stating concerns
for a high-speed rail route, noting that Rochester was trying to interfere with that route. She
said if high-speed rail funds on those tracks, then it would help the Redrock Corridor, and it
would make sense to do both of those at the same time, much more so than if bypassed for
high-speed rail. Mayor Shiely commented that Minnesota had done very little regarding
high-speed rail, in comparison to Illinois and Wisconsin, noting that a rail system could get
someone from Minnesota to Chicago faster than air travel. She said she would like to help
Redrock increase its visibility, being Cottage Grove was the largest community on that
whole system and be a hub for Amtrack.
Council Member Bailey inquired about the status of the bonding proposal submission for
intergovernmental funding. The City Administrator responded that it was in the
implementation stage.
Council Member Bailey then inquired about the goal to break ground for the ice arena and
getting more serious on planning for the Public Safety and City Hall complex. Mayor Shiely
stated that she would like more narrow, specific goals, which would be easier to work with.
Council Member Bailey stated that there was consensus on the community center with
specific actions to be taken. Council Member Rice stated that he was not ready to jump into
defining what the community center was. Council Member Bailey recommended that staff
determine what the wish of the Community was according to the survey.
Mayor Shiely suggested that a timefine be created, i.e., Police Station, City Hall, another
sheet of ice, athletic field, athletic complex. The City Administrator stated that it could be
done and also suggested that issues be addressed according to what was provided within
the capital improvements program. Council Member Bailey suggested that citizens
determine what to do next.
Mayor Shiely inquired whether the bond referendum would include a guarantee of operating
expenses for the life of the facility, such as a school operating levy. The Finance Director
responded that it would be hard to do. The City Administrator stated that he would find out.
Public Facilities and Governance
Mayor Shiely stated that Council had different opinions regarding facilities and governance
but the atmosphere was positive, which was important to the community. She stated her
preference that Governance be listed first. Council Member Rice agreed. The City
Administrator responded that the strategic goals did not relate to operating too much and,
assuming Council's attitude would be to continue that way, it should be stated that way.
Regular Meeting — January 17, 2007
Cottage Grove City Council
Page 16
Council Member Rice commented that safety and a secure environment (including police,
ambulance, plows, parks, etc.) were a main part of the mission and a part of governance.
Mayor Shiely stated that a big thrust was finding a place for Public Safety. The City
Administrator responded it was a necessity.
The City Administrator stated that the goals and accomplishments were intended to provide
departments with the opportunity to document what it is they did in the year that was
valuable and suggest where they think they are going. He said the intent in 2007 was to put
together an annual report within the next 1-2 months, gleaning what was most valuable.
Mayor Shiely expressed appreciation for staff's work on the document.
WORKSHOP SESSION — CLOSED
None.
ADJOURNMENT
MOTION BY GROSSKLAUS, SECONDED BY RICE, TO ADJOURN THE MEETING AT
10:22 P.M. MOTION CARRIED 5-0.
RespectFully submitted,
Mary Heintz
TimeSaver Off Site Secretarial, Inc.