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HomeMy WebLinkAbout2013-07-17 MINUTES COTTAGE GROVE CITY COUNCIL City of Cottage Grove, Minnesota Regular Meeting July 17, 2013 OPEN FORUM Mayor Myron Bailey opened Open Forum at 7:15 p.m. and stated that during Open Forum a person may address the City Council on a subject not a part of the regular meeting agenda, but must limit their remarks to three (3) minutes per person. The purpose of Open Forum is to give the public an opportunity to present information or to request action by the City Council. It 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 at 7:30 p.m. The following were present: Mayor Myron Bailey, Council Member Derrick Lehrke, Council Member Justin Olsen, Council Member Jen Peterson, and Council Member Dave Thiede. The following were absent: None. Also present were: Ryan Schroeder, City Administrator; Caron Stransky, City Clerk; Robin Roland, Finance Director; Sarah Sonsalla, City Attorney-Kennedy & Graven; Jennifer Levitt, City Engineer; Craig Woolery, Public Safety Director; and Les Burshten, Public Works Director. Mayor Bailey opened Open Forum at 7:15 p.m., and asked if anyone in the audience wished to address the City Council on any topic not on the agenda. nd Brad Berg of USAgain, 82 SE 2 Avenue, New Brighton, stated that he would like to place his textile recycle bins back at the Holiday Station located at 8610 East Point Douglas Road, Cottage Grove, and he provided the Council with information about his bins. Scott Fischer of Yocum Oil stated that his store is located at 8610 East Point Douglas Road, Cottage Grove, and has had the bins on his property for two years. 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 July 17, 2013 at the Cottage Grove City Hall, 12800 Ravine Parkway, Cottage Grove. Mayor Bailey called the meeting to order at 7:30 p.m. PLEDGE OF ALLEGIANCE The audience, staff and the Mayor and Council Members pledged allegiance to the flag of the United States of America. Cottage Grove City Council 2 July 17, 2013 Regular Meeting ROLL CALL The following were present: Mayor Myron Bailey, Council Member Derrick Lehrke, Council Member Justin Olsen, Council Member Jen Peterson, and Council Member Dave Thiede. The following were absent: None. Also present were: Ryan Schroeder, City Administrator; Caron Stransky, City Clerk; Robin Roland, Finance Director; Sarah Sonsalla, City Attorney-Kennedy & Graven; Jennifer Levitt, City Engineer; Craig Woolery, Public Safety Director; 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 PETERSON, TO MOVE ITEM F TO UNFINISHED AND NEW BUSINESS AND TO APPROVE THE AGENDA AS AMENDED. MOTION CARRIED. 5-0. 2. PRESENTATIONS A. Swearing In Swearing Ceremony – Police Officer Scott Shaver City Administrator Schroeder swore in Scott Shaver to the position of Police Officer for the City of Cottage Grove. B. Xcel Energy – Jake Sedlacek and Jennifer Abbott Jack Sedlacek and Jennifer Abbott, representatives of Xcel Energy were in attendance and formally presented to the City Council a rebate check in the amount of $52,590 for the Public Safety/City Hall facility through the Xcel Energy Design Assistance Program. C. Citizen Life Saving Award – Jesse Galloway The City Council presented a “Citizen Life Saving Award” to Jesse Galloway who recognized the need and signs/symptoms of cardiac arrest and without hesitation went to the aid of his father and immediately started CPR and continued giving life support until arrival of professional assistance. D. Youth Service Bureau – Mary Planten-Krell, Executive Director The City Council received a presentation from Mary Planten-Krell, Executive Director of the Youth Service Bureau, who highlighted the services provided to Cottage Grove youth, funding sources, and why the City should support them. She requested that the City provide the YSB with an $11,000 donation for 2014. Council Member Peterson asked whether the YSB would resume sponsoring the Garden Tour and Ms. Planten-Krell stated that volunteer support would be needed to organize the event. Cottage Grove City Council 3 July 17, 2013 Regular Meeting 3. APPROVAL OF MINUTES A.June 5, 2013 Regular Meeting Minutes Mayor Bailey accepted the minutes of the June 5, 2013 Regular Meeting as presented. B.June 19, 2013 Regular Meeting Minutes Mayor Bailey accepted the minutes of the June 19, 2013 Regular Meeting as presented. 4. CONSENT CALENDAR The City Council pulled and briefly discussed items B, D, and J. MOTION BY COUNCIL MEMBER OLSEN, SECONDED BY COUNCIL MEMBER PETERSON, TO: A.ACCEPT AND PLACE ON FILE THE FOLLOWING MINUTES: I.PARKS, RECREATION, AND NATURAL RESOURCES COMMISSION MEETING FROM MAY 13, 2013. II.PLANNING COMMISSION MEETING FROM MAY 20, 2013. B. APPROVE THE APPOINTMENT OF AUTUMN CARLSON AS A STUDENT MEMBER OF THE HUMAN SERVICES/HUMAN RIGHTS COMMISSION FOR A ONE-YEAR TERM TO EXPIRE JULY 17, 2013. C. AUTHORIZE STAFF TO ISSUE A REQUEST FOR PROPOSAL (RFP) SOLICITING AUDIT FIRMS TO PERFORM THE REQUIRED ANNUAL FINANCIAL AUDIT FOR 2013 THROUGH 2016. PROPOSALS SHALL BE RECEIVED BY 4:00 P.M., AUGUST 19, 2013. D. APPROVE CHANGE ORDER NO. 1 FOR THE EAST POINT DOUGLAS ROAD UTILITY AND STREET IMPROVEMENTS PROJECT WHICH INCREASES THE ORIGINAL CONTRACT AMOUNT FROM $1,416,542.85 TO THE REVISED CONTRACT AMOUNT OF $1,472,472.41. THE CHANGE ORDER INCLUDES WORK TO CONSTRUCT MEDIAN IMPROVEMENTS ON EAST POINT DOUGLAS ROAD ADJACENT TO CUB FOODS TO IMPROVE TRAFFIC FLOW. E. APPROVE THE RENEWAL OF THE CITY’S PACKAGE POLICY THROUGH THE LEAGUE OF MINNESOTA CITIES INSURANCE TRUST (LMCIT) WITH A $50,000/$100,000/$1,000 DEDUCTIBLE FOR THE POLICY PERIOD ENDING APRIL 3, 2014. F. MOVED TO UNFINISHED AND NEW BUSINESS AS ITEM 8.B. G. TO APPROVE THE SPECIFICATIONS FOR TOWING AND IMPOUNDING OF PASSENGER CARS, TRUCKS, CYCLES, AND SNOWMOBILES WITHIN THE CITY AND TO SET A BID DATE OF AUGUST 6, 2013 AT 4:00 P.M. AT THE COTTAGE GROVE CITY HALL, 12800 RAVINE PARKWAY, COTTAGE GROVE. Cottage Grove City Council 4 July 17, 2013 Regular Meeting H. SCHEDULE A SPECIAL MEETING OF THE COTTAGE GROVE CITY COUNCIL FOR JULY 24, 2013 TO INTERVIEW CIVIL LEGAL FIRMS. I. APPROVE THE WASHINGTON COUNTY SPECIAL WEAPONS AND TACTICS (SWAT) JOINT POWERS AGREEMENT AND AUTHORIZE EXECUTION OF THE AGREEMENT BETWEEN THE CITY OF COTTAGE GROVE, THE WASHINGTON COUNTY SHERIFF’S DEPARTMENT, AND THE POLICE DEPARTMENTS FOR BAYPORT, FOREST LAKE, NEWPORT, OAK PARK HEIGHTS, ST. PAUL PARK, AND WOODBURY, CONTINGENT UPON CITY ATTORNEY’S REVIEW AND APPROVAL. SOME MINOR CHANGES TO THE CONTRACT LANGUAGE WAS STILL BEING DISCUSSED. J. PROCLAIM TUESDAY, AUGUST 6, 2013 AS “NIGHT TO UNITE” DAY IN THE CITY OF COTTAGE GROVE. K. ADOPT RESOLUTION NO. 2013-075, A RESOLUTION APPROVING THE APPLICATION OF DAVID AND NIKI BORNER, 9017 LAMAR AVENUE SOUTH, COTTAGE GROVE, FOR A VARIANCE TO THE 180-FOOT MINIMUM LOT WIDTH AND MAXIMUM LOT DEPTH, A CONDITIONAL USE PERMIT TRANSFERRING DEVELOPMENT RIGHTS, AND A MINOR SUBDIVISION (A RURAL DIVISION OF A SINGLE PARCEL OF LAND INTO TWO SEPARATE PARCELS). L. AWARD THE 2013 SANITARY AND STORM SEWER CLEANING AND TELEVISING PROJECT TO HYDRO-VAC, INC., FOR THE TOTAL QUOTE OF $20,248.40. M. APPROVE THE CITY ADMINISTRATOR JOB DESCRIPTION. MOTIONCARRIED.5-0. 5. RESPONSE TO PREVIOUSLY RAISED OPEN FORUM ISSUES – None. 6. PUBLIC HEARINGS – None. 7. BID AWARDS – None. 8. UNFINISHED AND NEW BUSINESS A. 1. Consider Amending the Animal Control and Zoning Ordinances to Allow Fowl and/or Poultry Animals on Residentially Zoned Properties that have between Three and Five Acres of Land with Requirements for Licensing and Performance Standards. 2. Consider Authorizing Publication of the Ordinance Amendment by Title and Summary Senior Planner McCool highlighted the proposed ordinance amending the Animal Control and Zoning Ordinances to allow fowl and/or poultry on residentially-zoned properties of three to five acres of land and imposes a 100-foot setback between a coup and pen. He then outlined the proposed performance standards and advised the Council that the Planning Commission held a public hearing and recommends by a 5-2 vote to adopt the draft ordinance. The two commissioners that voted nay felt that the five-acre Cottage Grove City Council 5 July 17, 2013 Regular Meeting minimum was acceptable and that farm animals should be on five acres or greater. Senior Planner McCool confirmed that residents would not be allowed to sell eggs, chickens, or poultry at their home but could sell at a farmer’s market. The Council briefly discussed the definition in the ordinance for poultry and fowl. MOTION BY COUNCIL MEMBER OLSEN, SECONDED BY COUNCIL MEMBER PETERSON, TO PASS ORDINANCE NO. 915, AN ORDINANCE FOR THE CITY OF COTTAGE GROVE, MINNESOTA, AMENDING THE ANIMAL CONTROL AND ZONING ORDINANCES TO ALLOW FOWL AND POULTRY ON RESIDENTIALLY- ZONED PROPERTIES THAT HAVE BETWEEN THREE AND FIVE ACRES OF LAND WITH REQUIREMENTS FOR LICENSING AND PERFORMANCE STANDARDS. MOTION CARRIED. 4-1 WITH COUNCIL MEMBER LEHRKE VOTING NAY. MOTION BY COUNCIL MEMBER PETERSON, SECONDED BY COUNCIL MEMBER OLSEN, TO ADOPT RESOLUTION NO. 2013-077, A RESOLUTION AUTHORIZING PUBLICATION OF ORDINANCE NO. 915 BY TITLE AND SUMMARY. MOTION CARRIED. 4-1 WITH LEHRKE VOTING NAY. B.To schedule a public hearing of the Cottage Grove City Council for August 14, 2013 to consider the issuance of Capital Improvement Plan (CIP) Bonds. Finance Director Roland requested that the Council consider scheduling a public hearing for August 14, 2013 to consider the issuance of General Obligation Capital Improvement Plan (CIP) Bonds. She stated that at the June 19 regular meeting, the Council adopted a Resolution calling for a public hearing for this evening. The bonds would be issued to reimburse funds (cash) which the City expended for the construction of the Public Safety/City Hall facility. Due to human error, the legal notice for the public hearing was not published and therefore the public hearing tonight needs to be rescheduled to the August 14 regular Council meeting. Finance Director Roland noted that in 2010 when the Council first proposed using General Obligation CIP Bonds to pay for the construction of the new Public Safety/City Hall facility, the City received a reverse referendum petition and the Council voted on an internal financing option to fund the construction of the building with about $5 million in cash and $9.9 million through an interfund loan. She stated that when the Council voted on the internal financing option, staff identified that there was an 18-month window subsequent to the completion of construction where the City could issue CIP bonds and repay itself for all or a portion of the internal borrowing. That would be an option if levy limits were imposed. Finance Director Roland stated that there were two options available to the Council. Option No. 1 is to adopt a resolution calling for a new public hearing for  the issuance of General Obligation CIP Bonds on August 14, 2013. This would give the public an opportunity to provide input on the issuance of Cottage Grove City Council 6 July 17, 2013 Regular Meeting bonds and provides for a 30-day reverse referendum period when the public could submit a petition. She noted that if a petition were received following the public hearing, the City would not have enough time remaining within the 18 months and within the budget process to hold an election. Option No. 2 is to rescind Resolution No. 2013-074 that was adopted by  the Council at the June 19, 2013 meeting calling for a public hearing tonight. By rescinding the public hearing, there would be no public hearing and external financing in the form of municipal bonds could not be considered for this project. Finance Director Roland stated that it was her recommendation that the Council approves Option No. 1 to hold the public hearing for the issuance of General Obligation CIP Bonds on August 14, 2013. Finance Director Roland noted that the City is currently in the midst of a Pavement Management project and we will need to bond for the improvements. The bond issue for the project would be about $9.7 million. The City would have to provide external financing for a significant share of the project cost because we do not have cash to rely on. The City would have an increased share of the Pavement Management costs to be bonded and once the bonds are issued, that debt would be added to the City’s levy. Finance Director Roland stated that there is an option that she could not recommend. That is to utilize cash without the expectation of repaying it back. She stated that she does not want this to affect the City’s existing AA+ bond rating. MOTION BY COUNCIL MEMBER OLSEN TO RESCIND RESOLUTION NO. 2013- 074 ADOPTED ON JUNE 19, 2013, A RESOLUTION CALLING FOR A PUBLIC HEARING ON JULY 17, 2013, TO ISSUE GENERAL OBLIGATION CAPITAL IMPROVEMENT BONDS. Council Member Lehrke stated that Council Member Olsen was not at the last meeting and asked whether someone on the prevailing side would have to rescind the motion. City Attorney Sonsalla concurred stating that a person that voted in favor of the resolution would have to move to reconsider it. Council Member Thiede stated that even if we held the public hearing on August 14, are you saying that we would not have enough time to hold a reverse referendum election. Finance Director Roland stated that that was correct. If we received a reverse referendum petition, we would not have enough time to hold an election within the 18-month period and Budget timeframe. If we are going to issue General Obligation CIP bonds, we need assurance that we are going to be able to use them in the budget methodology that we have talked about. Mayor Bailey stated that we would not know until September 14 at the Cottage Grove City Council 7 July 17, 2013 Regular Meeting earliest that we would have the opportunity to use these particular bonds. He asked staff when we need to approve the budget. Finance Director Roland advised the Council that she would be asking the Council to approve the budget at the September 4 regular meeting. City Administrator Schroeder stated that the Council would have to allow for a fair amount of contingency in the preliminary levy and preliminary budget to be approved at the September 4 meeting. Mayor Bailey stated that he was not in favor of moving forward because there is too much risk trying to complete the budget and wait to find out if we receive a reverse referendum petition requiring an election. MOTION BY MAYOR BAILEY, SECONDED BY COUNCIL MEMBER PETERSON, TO RESCIND RESOLUTION NO. 2013-074, A RESOLUTION CALLING FOR A PUBLIC HEARING ON JULY 17, 2013 WITH THE INTENTION TO ISSUE GENERAL OBLIGATION CIP BONDS AND TO ADOPT A CAPITAL IMPROVEMENTS PLAN. Council Member Olsen asked if he was allowed to vote and Mayor Bailey responded yes. Council Member Lehrke voiced support for Option No. 1 to adopt a resolution calling for a new public hearing for the issuance of General Obligation CIP Bonds on August 14, 2013. Council Member Olsen stated that he supported Option No. 2 to rescind Resolution No. 2013-074 that was adopted by the Council at the June 19, 2013 meeting calling for a public hearing tonight. There was discussion on what it would cost to prepare for another hearing and what the interest rate would be for General Obligation Pavement Management Improvement Bonds. Finance Director Roland stated that if we were to continue to pay for the Public Safety/City Hall internally then we would have to issue General Obligation Pavement Management Improvement Bonds in September to help fund the cash that we do not have because we spent it on this building. If we were to go forward with the General Obligation CIP bonds and utilize those funds, the levy is already in existence for those because we would substitute the CIP bonds for the internal loan and we would not have to issue Pavement Management Improvement bonds until early in 2014. Council Member Peterson stated that she would like to make sure that the information we received tonight verbally gets into the meeting minutes. Council Member Lehrke asked how much more we could expect to pay in interest for the improvement bonds versus the CIP bonds? Finance Director Roland stated that the CIP bonds and the improvement bonds are considered general obligation. There would not be a difference in Cottage Grove City Council 8 July 17, 2013 Regular Meeting interest rates because of that general obligation. Neither one of the bonds that we are proposing are lease revenue or a revenue type which would increase the interest rate. Council Member Lehrke stated that they are both General Obligation bonds but this building would be a General Obligation CIP Bond with the reverse referendum ability. Council Member Lehrke stated that when we decided to spend and pay for the building internally and pay ourselves a 1% interest rate, we were getting a quarter percent interest rate on our cash reserves. He asked if we have any idea what we get now. Finance Director Roland stated that we are at about one percent. We do anticipate that increasing in the next couple of years but that is all dependent on the Federal Reserve and what bank interest and investments do. Council Member Lehrke stated that he agrees that cash is cheaper and asked if there was ever a situation that you could see where we would ever get more than 1.9 percent. Finance Director Roland stated that she would hope so but she could not tell you that it is going to happen with surety within the next two to three years. Council Member Lehrke stated that if at any time we can get more than 1.9 percent on our cash, we would have saved money if we would have bonded at the 1.9% years ago. This is the point that he is trying to get at. Council Member Lehrke commented that we told citizens months ago that we were going to have a public hearing and that they could tell us what they think. It is unfortunate that we are now deciding that there is not going to be a hearing at all. UPON VOTE BEING TAKEN, MOTION CARRIED. 4-1 WITH COUNCIL MEMBER LEHRKE VOTING NAY. 9. RESPONSE TO PREVIOUSLY RAISED COUNCIL COMMENTS AND REQUESTS – None. 10. COUNCIL COMMENTS AND REQUESTS Council Member Peterson stated that the next Fare for all is July 18 at All Saints Lutheran Church and there is a gifting opportunity to buy packages; the next Red Rock Corridor meeting is July 25; the next Beyond the Yellow Ribbon meeting is August 20 and they are starting to plan for a Veteran’s Day memorial celebration. Council Member Olsen stated that he was approached by a group of citizens who are interested in seeing the City organize a formal committee/commission focused on the arts in our community. They would like to see people who are involved in different arts participate, whether it is music, painting, visual arts (photography/filmmaking), a community band, or opportunities for youth, etc. He stated that he would be willing to volunteer to serve as the Council liaison. Cottage Grove City Council 9 July 17, 2013 Regular Meeting Mayor Bailey stated that he has received a large number of messages thanking him for the Splash Pad. He stated that he would like to continue discussion on the River Oaks Golf Course and invited the public to a happy hour on Thursday evening. Lastly, he was extremely proud of all the businesses that passed the recent alcohol compliance check. 11. PAY BILLS MOTION BY COUNCIL MEMBER OLSEN, SECONDED BY MAYOR BAILEY, TO APPROVE PAYMENT OF CHECK NUMBERS 181923 THROUGH 182298 IN THE AMOUNT OF $2,448,849.23 AND EFT PAYMENT OF $147,980.14 (CHECK NUMBERS 181923 – 182156 IN THE AMOUNT OF $1,473,386.11 AND EFT PAYMENT OF $21,119.62 WERE ISSUED PRIOR TO COUNCIL APPROVAL). MOTION CARRIED. 5-0. 12. WORKSHOP SESSION – OPEN TO PUBLIC – None. 13. WORKSHOP SESSION – CLOSED TO PUBLIC – None. ADJOURNMENT MOTION BY COUNCIL MEMBER THIEDE, SECONDED BY COUNCIL MEMBER PETERSON, TO ADJOURN THE REGULAR MEETING AT 9:13 P.M. MOTION CARRIED. 5-0. Prepared by, Caron M. Stransky City Clerk