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HomeMy WebLinkAbout2003-06-04 MINUTES REGULAR MEETING COTTAGE GROVE CITY COUNCIL June 4, 2003 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 (2) minutes per issue. Present: Mayor Sandy Shiely Council Member Mark Grossklaus Council Member Cheryl Kohls Council Member Pat Rice Council Member Jim Wolcott Also Present: Ryan Schroeder, City Administrator Ron Hedberg, Finance Director Kim Lindquist, Community Development Director John Mickelson, Public Safety Director Nancy Hanzlik, City Engineer Les Burshten, Public Works Director Corrine Thomson, City Attorney Michelle Wolfe, Assistant City Administrator Roger Peterson, Event Coordinator and Great Grove Get Together Committee Member, stated that the Committee has worked hard over the past year putting together the events for this year’s Great Grove Get Together. He stated that the event would take place at Kingston Park on June 14, 2003, beginning at 10:00 a.m. with the annual parade. He provided the Council with a review of the events noting that a full roster could be viewed at the City website, www.cottage-grove.org. He stated that the Medallion Hunt will begin on June 11, 2003 adding that Mayor Shiely would be the featured guest at the dunk tank and encouraged everyone to check the scheduled times for a chance at tossing the ball. He reviewed the car show stating that this year’s theme is vintage vehicles. He explained that one of this year’s sponsor’s—3M—in support of the car show, would provide show entrants with a gift bag that includes liquid car wax in addition to a gift bag of other items produced by 3M. He provided the Council with a copy of the flyer for the car show and encouraged Residents to show up with their vintage vehicles to add to the festivities. Kris Thomsen, Parade Coordinator, provided the Council with a detailed review of the parade route noting that there has been a change. She stated that the parade would begin at th 10:00 a.m., starting at the Park Senior High School parking lot, following 80 Street to Regular Meeting – June 4, 2003 Cottage Grove City Council Page 2 th Jamaica, turning onto 75 Street, and ending at Kingston Park. She stated that three Grand Marshals were nominated this year—Nate Kinsey, Tim Newton and Scott Nelson. She explained that these three individuals are City Employees who showed exemplary service in an emergency situation. She explained that in a survey done earlier this year they asked Residents to vote on their favorite event stating that 50% of those who responded stated that the parade was their favorite event. She noted that the Vulcan Crew would also participate in this year’s parade and encouraged everyone to come out and have a good time. She stated that parking for the event would be available in the St. Rita’s Church parking lot. Myra Peterson stated that this year’s baseball event would be played by the 1860 rules. She provided the Council with an overview of the rules stating that this year LaCroix is challenging Kingston Homes. She stated that when the games are over the children would also have an opportunity to play baseball by the 1860 rules. She encouraged everyone to come out and enjoy the games as it provides everyone with an opportunity to meet their neighbors, their local business vendors and City Representatives. Jennifer Osborne, Promotions for the Great Grove Get Together, stated that this year they have an insert in the Minnesota Magazine. She provided Council with an example of the insert stating that it provides a complete schedule of all of the events. She stated that individuals wearing a Great Grove Get Together Button would be able to obtain a variety of discounts at local businesses in the area. She stated that they are also selling T-Shirts this year noting that both the Button and T-shirts are available, for purchase, at City Hall and several local businesses in the area. Mayor Shiely noted that the Committee for the Great Grove Get Together has been working for a solid year putting together this event for the City. She stated that they have all done a th wonderful job and encouraged everyone to come out on June 14 to watch the parade and enjoy the day. CALL TO ORDER The City Council of the City of Cottage Grove, Washington County, Minnesota held a regular th meeting on Wednesday, June 4, 2003, at the Cottage Grove City Hall, 7516 80 Street South Mayor Shiely called the meeting to order at 7:30 p.m. ROLL CALL Present: Mayor Sandy Shiely Council Member Mark Grossklaus Council Member Cheryl Kohls Council Member Pat Rice Council Member Jim Wolcott Also Present: Ryan Schroeder, City Administrator Ron Hedberg, Finance Director Kim Lindquist, Community Development Director Regular Meeting – June 4, 2003 Cottage Grove City Council Page 3 John Mickelson, Public Safety Director Nancy Hanzlik, City Engineer Les Burshten, Public Works Director Corrine Thomson, City Attorney Michelle Wolfe, Assistant City Administrator Mayor Shiely presided over the meeting. ADOPTION OF AGENDA Mayor Shiely reviewed the additions to the agenda with Council. She clarified that Item 7A, Bid Awards, states that final approval would be pending City Attorney review and approval. She explained that an Open Workshop Session has been added to discuss Watershed financial issues. She explained that the Workshop session would not be televised as Council would convene in the adjacent Conference Room in order to be able to review the large map of the Watershed area. She stated that the Workshop would be open to the public, but not televised and encouraged anyone interested in the issues to come down to City Hall to attend. MOTION BY WOLCOTT, SECONDED BY KOHLS, TO APPROVE THE AGENDA AS AMENDED. MOTION CARRIED 5-0. APPOINTMENTS AND PRESENTATIONS A. APPOINTMENTS NONE B. PRESENTATIONS i. Recognition of 24 Years of Service – Sergeant Laurel Tollefson. Mayor Shiely stated that the City Council is presenting a plaque to Sergeant Tollefson in recognition of his twenty-four years of service with the Cottage Grove Police Department. She explained that Sergeant Tollefson is retiring from the department adding that he would definitely be missed. Council joined her on the floor for the presentation. Mayor Shiely presented Sergeant Tollefson with the plaque. She explained that the award was in recognition of his dedicated service and of the City’s appreciation for his dedication to the City of Cottage Grove. She thanked him for all of his years of service stating that they are very much appreciated. Public Safety Director Mickelson reviewed Sergeant Tollefson’s history with the Police Department noting that he was the Chief of Police in Frazee, Minnesota and left to join the Cottage Grove Police Department as an officer. He stated that he and Sergeant Tollefson Regular Meeting – June 4, 2003 Cottage Grove City Council Page 4 began their careers on the force at the same time, April 16, 1979. He noted that Sergeant Tollefson has the longest tenure in the department stating that he never went beyond the rank of Sergeant because his enjoyment was working with the people and residents of Cottage Grove. He stated that he would be missed and wished him well in his retirement. Sergeant Tollefson thanked the Citizens of Cottage Grove and the City Council for all of their support over the last twenty-four years. He thanked his family for their support throughout his career adding that he would miss everyone but was looking forward to enjoying his retirement. APPROVAL OF MINUTES A. May 7, 2003 Regular Meeting Mayor Shiely stated that the minutes stand approved as presented. B. May 22, 2003 Special Meeting. Mayor Shiely stated that the minutes stand approved as presented. C. May 28, 2003 Special Meeting. Mayor Shiely stated that the minutes stand approved as presented. D. May 29, 2003 Special Meeting. Mayor Shiely stated that the minutes stand approved as presented. CONSENT CALENDAR Council Member Grossklaus requested that Item H be pulled for further discussion. He noted that Staff is recommending an amendment to the subdivision ordinance to raise the park dedication fees for new residential development. He questioned why there was a difference between single-family units and multifamily dwellings. He asked for further clarification as to why all dwelling types are not included in the $2,000.00 fee structure. He explained that he reviewed the park dedication fee structure for several other Cities noting that most Cities charge one fee for any dwelling unit. Community Development Director Lindquist explained that the current park dedication fee structure has been in force since 1994 and was based on a study that was done during that period of time. City Attorney Thomson clarified that generally it is recommended that Cities do a study to support the proposed park dedication fees adding that if fees are determined to be in excess that a claim could be made against the City if it is not in compliance with State statute. She explained that the study may have indicated that multifamily property does not place as Regular Meeting – June 4, 2003 Cottage Grove City Council Page 5 much demand on the park use, although that would need to be checked as current staff was not here at that time. City Administrator Schroeder further clarified that the population per household is typically less in multifamily than single-family units and if so demand on facilities would be less. He explained that in his experience the multifamily unit fee is usually 80% of what the single- family unit fee is. He reviewed the park dedication fee structure adding that the current process has been in place for the last twenty years. Council Member Kohls noted the differences in fees between multifamily and single-family units and expressed agreement with Council Member Grossklaus. She stated that many of the cities in the survey do not differentiate between single-family and multifamily units. She clarified her understanding with City Attorney Thomson with regard to the concern over excessive fees and asked if this is due to the land values. City Attorney Thomson clarified the land dedication process and the fee amounts noting that the fees could be questioned if they are not in compliance with the State Statute. She further clarified that if the study conducted suggests that the demand by a multifamily unit is less than that created by a single-family unit that this would be one piece of evidence for someone to state that the fee chosen is arbitrary as it is not supported by the study. She stated that the court would consider any studies done by the City that were used to determine the fees. Mayor Shiely thanked Council Member Grossklaus for raising this issue noting that Council should further review the study used to determine the fees and become more familiar with the structure. Council Member Grossklaus noted that Cottage Grove is a growing community adding that the one-time fee is the one opportunity for the City to receive money for the parks. Council Member Wolcott acknowledged the concerns and discussion with respect to doubling the fees and agreed that further review is needed. He stated that Council Member Grossklaus has a good point and agreed that Council should become more familiar with the study and fee structure. He suggested moving forward with the current proposal to approve the fee structure for now and review further for possible updates to the park dedication fee structures. He asked that the Parks Department provide Council with further clarification for the proposed fee structure. City Administrator Schroeder stated that they would discuss the fee structure further at the next Parks Commission meeting and provide Council with an update of the discussion. He stated that park land is considerably more expensive to maintain adding that the Parks Commission is presently reviewing the current inventory and also determining the future needs for various neighborhoods. Mayor Shiely stated that in the interim they should continue to collect the fees adding that she is comfortable with approving the current proposal and revisiting the issue, in the near future. Community Development Director Lindquist explained that they are currently reviewing the fees noting that they could go to an entirely different schedule. She stated that the district Regular Meeting – June 4, 2003 Cottage Grove City Council Page 6 wide financing review could impact the fee structure adding that she is in agreement with approving the proposal and revisiting the issue at a later date. Council Member Grossklaus clarified that he does not have a problem approving the proposal adding that his concern is that the current fee structure should be reviewed further. MOTION BY WOLCOTT, SECONDED BY RICE, TO: A. ACCEPT AND PLACE ON FILE THE FOLLOWING MEETING MINUTES: i. PLANNING COMMISSION OF APRIL 28, 2003. B. ADOPT RESOLUTION NO. 03-110 APPROVING FINAL PAYMENT IN THE AMOUNT OF $15,142.93 TO INLAND UTILITY CONSTRUCTION COMPANY ON THE HIDDEN TH VALLEY 10 ADDITION PROJECT. C. ADOPT RESOLUTION NO. 03-111 ACCEPTING A GRANT FROM COMMUNITY YOUTH CONNECTION EDUCATION ADVISORY COUNCIL (CEAC) TO ASSIST IN COVERING EXPENSES FOR MATERIALS TO BE USED IN READING BOOKS ONTO TAPES FOR FAMILY MEANS/FAMILY LINKS BY THE TEENS IN ACTION GROUP OF THE CITY OF COTTAGE GROVE RECREATION DEPARTMENT. D. ADOPT RESOLUTION NO. 03-112 AUTHORIZING PUBLICATIONS OF ORDINANCE NO. 732 BY TITLE AND SUMMARY. E. ADOPT RESOLUTION NO. 03-113 AUTHORIZING PUBLICATION OF ORDINANCE NO. 733 BY TITLE AND SUMMARY. F. ADOPT RESOLUTION NO. 03-114 AUTHORIZING PUBLICATION OF ORDINANCE NO. 734 BY TITLE AND SUMMARY. G. ADOPT RESOLUTION NO. 03-115 APPROVING A SIMPLE LOT DIVISION WITH VARIANCE FOR A SIMPLE BOUNDARY ADJUSTMENT BETWEEN 10384 AND 10398 KIMBERLY COURT SOUTH. H. ADOPT ORDINANCE NO. 735 AN ORDINANCE FOR THE CITY OF COTTAGE GROVE, MINNESOTA, AMENDING TITLE 10-4-3C OF THE COTTAGE GROVE CITY CODE RELATING TO PUBLIC SITES AND OPEN SPACES SCHEDULE OF DEDICATION REQUIREMENTS. I. AUTHORIZE THE CITY ADMINISTRATOR TO ENTER INTO A TWO-YEAR CONTRACT WITH T.E.A.M., INC. AT A COST OF $2,500/YEAR FOR EMPLOYEE ASSISTANCE PROGRAM SERVICES, PLUS ADDITIONAL FEES FOR SPECIALIZED TRAINING AND SUBSTANCE ABUSE PROFESSIONAL SERVICES AS NEEDED OR REQUIRED. J. APPROVE AN OUTDOOR EVENT PERMIT FOR THE GREAT GROVE GET TOGETHER. TH K. RECEIVE INFORMATION REGARDING SEMAPHORE AT 80 STREET AND HYDE AVENUE SOUTH. L. ADOPT RESOLUTION NO. 03-116 APPROVING CONSTRUCTION PLANS AND TH SPECIFICATIONS AND SETTING A BID DATE FOR TIMBER RIDGE 4 ADDITION STREET AND UTILITY IMPROVEMENTS. M. APPROVE AN OFFICIAL CITY POLICY ON GEOCACHING IN PUBLIC PARKS AND OPEN SPACE WITH THE CITY OF COTTAGE GROVE. Regular Meeting – June 4, 2003 Cottage Grove City Council Page 7 N. ADOPT RESOLUTION NO. 03-117 ORDERING IMPROVEMENT AND PREPARATION OF PLANS AND SPECIFICATIONS FOR MISSISSIPPI DUNES ESTATES. MOTION CARRIED 5-0. Mayor Shiely stated that if anyone is present for issues on the Consent Calendar all have been passed. RESPONSE TO PREVIOUSLY RAISED OPEN FORUM ISSUES A. Response to Adam and Tracy Janiak Regarding Drainage Concerns. Mayor Shiely reviewed the letter of response issued to the Janiak’s addressing their drainage concerns. City Administrator Schroeder explained that the Building Inspector and City Staff visited the area stating that corrections have been made to the area. He stated that the slab has been removed in part and a swale has been constructed to redirect the drainage away from the Janiak’s property. He stated that Janiak’s have received the letter of explanation. PUBLIC HEARINGS NONE BID AWARDS st A. Consider Awarding the Pine Arbor 1 Addition Utility, Street and Street Lighting Improvement Contract to Hydrocon, Inc. City Attorney Thomson referenced documents she and City Engineer Hanzlik provided to Council for their review prior to the meeting. She reviewed the documents with Council stating that the recommendation is to award the contract bid for utility and street light st improvements in the Pine Arbor 1 Addition. She stated that the contract bid has been received and that everything in the contract is appropriate except that the plat has not been recorded yet. She explained that without a recorded plat they do not have an easement to access the property. She further explained that US Homes is not the simple fee owner noting that US Homes is purchasing the property on a contract for deed. She stated that the fee owners presently live outstate and that the temporary easement has been sent to them for signature. She stated that they have not received the signed documents adding that one of the fee owners has expressed verbal agreement to the contract. She explained that if the contract for deed with US Homes is cancelled and the property owners have not signed the temporary easement that the owners could bring a claim against the City. She further explained that to protect the City against this risk they required the developer to submit a second agreement, the indemnification agreement, and she reviewed the agreement with Council. She stated that as a matter of information the fee owners are aware of the project and the temporary easement adding that one of the owners has verbally agreed. Regular Meeting – June 4, 2003 Cottage Grove City Council Page 8 Mayor Shiely asked if the indemnification agreement and the temporary easement would require separate motions. City Attorney Thomson confirmed that they are asking for motions on both items in addition to the award for the contract. She explained that it would require three motions—one to award the bid conditioned upon receipt of the two documents, a second to approve the temporary easement with deletion of paragraph eight, and a third to approve indemnification. MOTION BY RICE, SECONDED BY WOLCOTT, TO ADOPT RESOLUTION NO. 03-118 ST AWARDING BID FOR THE CONSTRUCTION OF THE PINE ARBOR 1 ADDITION. MOTION CARRIED 5-0. MOTION BY KOHLS, SECONDED BY RICE TO APPROVE THE TEMPORARY ROADWAY AND UTILITY EASEMENT WITH DELETION OF PARAGRAPH EIGHT. MOTION CARRIED 5-0. MOTION BY WOLCOTT, SECONDED BY RICE, TO ACCEPT THE INDEMNIFICATION AGREEMENT. MOTION CARRIED 5-0. UNFINISHED AND NEW BUSINESS A. Choose Three to Four Members from Residents in the East Ravine Study Area and Three to Four Members from Outside the Study Area to Serve on the East Ravine Technical Advisory Team. Mayor Shiely clarified that it is her understanding that Staff is looking at eventually having two different advisory groups. She asked Community Development Director Lindquist to further clarify. Community Development Director Lindquist clarified that it would be one advisory group with representation by various agencies and would include residents. She reviewed the agency groups involved noting that they would also include resident members at the meeting. Council Member Kohls clarified that it was her understanding that it would be the technical group and then a separate group of residents. She asked for clarification of the technical members. Community Development Director Lindquist reviewed membership with the Council stating that they discussed setting an agenda with the agency group adding that if an issue is unrelated to their area that they would bring in representatives from the area involved. Council Member Kohls referenced the daytime meeting schedule and expressed concerns that residents who would like to attend would not be able to due to work schedule conflicts. She referenced the list of individuals expressing an interest in the group and expressed concerns regarding the Builders Association. She noted that the list was quite large and asked how they would determine who could participate. She stated that she would prefer to have all of them involved in the process. She stated that if they have shown an interest that Regular Meeting – June 4, 2003 Cottage Grove City Council Page 9 the City owes it to them to allow them involvement. She questioned the need for involvement from the Builders Association stating that they already have enough outside involvement. She expressed concerns that individuals from the study area are only individuals with large land holdings in the area adding that people from the Old Cottage Grove area, without large land holdings, should also be involved. She stated that she is inclined to allow everyone on the list, who has expressed interest, to be involved. She asked for clarification of the criteria that would be used to determine membership. Mayor Shiely agreed stating that she would be more comfortable in choosing if they have a clear understanding of the criteria. She expressed concerns that many of those involved would not have anything at stake and reviewed her concerns with Council. She stated that she views this as an opportunity for local involvement. Council Member Wolcott agreed that if they were going to narrow the list down that they should review the property owners’ locations. He expressed concerns regarding the daytime schedule for the meetings stating that many would not have the flexibility to be available. He agreed that this should be discussed further. He also suggested adjusting the time for the meetings in order to include the majority of the group. Mayor Shiely clarified that they decided on daytime meetings due to the availability of the technical group. Community Development Director Lindquist suggested continuing this item until the June th 18 City Council meeting. She agreed that there are several items that require further discussion. Council Member Grossklaus noted that the Planning Commission has a member on the Advisory Committee and suggested including other Commissions. Council Member Wolcott stated that an individual from the Public Works Department is on the list. Council Member Rice stated that he has an individual who is interested in being involved and would like to be added to the list. He submitted the name to Mayor Shiely for inclusion. Council Member Wolcott agreed that there is a need to revisit the number of groups and members and encouraged including groups like Public Safety and the Parks Commission. Mayor Shiely agreed and suggested including the Historical Preservation Society. Council Member Kohls stated that she would contact the chair for the Historical Preservation Society to determine their interest. The Council agreed by consensus to continue this issue for further discussion. RESPONSE TO PREVIOUSLY RAISED COUNCIL COMMENTS AND REQUESTS A. District 833 Transportation. Regular Meeting – June 4, 2003 Cottage Grove City Council Page 10 Mayor Shiely reviewed the letter sent to the School District as it relates to Council concerns regarding bus transportation. COUNCIL COMMENTS AND REQUESTS Mayor Shiely noted that Cedarhurst Mansion is having an Open House for the Community on June 5, 2003. She encouraged everyone to visit and tour the mansion stating that the Mansion would be open from 3:00 p.m. to 8:00 p.m. She stated that there would be a special ceremony at 8:00 p.m. with refreshments served afterwards. She stated that the Washington County Board has requested feedback from the City regarding locations for the County Service Center and the Park and Ride area. She asked City Administrator Schroeder to review. City Administrator Schroeder stated that they are asking the Council to send a letter supporting the location for a service center in the north and south area of Cottage Grove. He reviewed the County Board issues with Council stating that they are interested in knowing whether the communities are interested in the project. He explained that it would be a 50,000 square foot facility in addition to the service center. He stated that it would include many of the activities presently available at the armory. He noted an area that is presently under construction on West Point Douglas Road stating that two acres along the front of the development has been reserved for the Service Center. He explained that this parcel would work for their facilities. He reviewed the facility noting that the two acres may not be large enough to accommodate the facility. He explained that they have two options—one to move to a different location; or two, to determine if the seven-acre parcel could be expanded to pick up the parking on the adjacent sides. Mayor Shiely asked who would be involved in the process. City Administrator Schroeder stated that it is the County that is short on parking. He stated that the parking would have to be expanded as there is a desire to have approximately 650 parking spaces and there is only enough room for approximately 550. He explained that everything has been provided adding that they could be asked to lend additional assistance to help with the completion of the project. He stated that the ultimate question is whether Council is interested in sending the message to the County that this is important to the City of Cottage Grove and the City is willing to provide support. He stated that they are not asking for financial assistance at this time noting that the request could come once they determine the need for expansion of the parking area. Council Member Wolcott noted that he was involved with this years ago stating that the County had placed money into the armory. He stated that an addition to the armory is possible if they determine that the park and ride site is not large enough. He strongly encouraged the Council to strongly support this in a letter. He stated that the Judges have a need for additional court rooms noting that the Judges do not want to leave the Stillwater area. He reviewed his project involvement and discussions with the Council noting that he spent 15 months on this project. He explained that Stillwater does not have a large enough building footprint to accommodate and expand to 18 courtrooms. He stated that they should Regular Meeting – June 4, 2003 Cottage Grove City Council Page 11 also consider the security issues and the number of holding cells. He stated that the project came to an end based on the Committee’s decision to keep the current footprint with the recommendation to purchase property in the future for expansion. He explained that the Committee felt very strongly that a service center should be located in both the north and south areas of Washington County. He stated that this was determined not only for the citizens but also for the court system. He reviewed the discussions with Council adding that approximately 55% of the Washington County population is located in Oakdale and Cottage Grove. He explained that Stillwater is not a convenient location to access adding that south Washington County has a large population of lower income residents who would be greatly impacted, in a negative fashion, as transportation is not readily available to them. He explained that he feels very strongly that Council support the service center as it is his belief that they need a service center in both north and south Washington County. He reviewed the metro service center locations with Council. He stated that they do not have enough court room space and there are only two holding cells, one for men and one for women. He explained that they cannot hold county prisoners with others from other institutions. He further explained that one of the Judges’ concerns is that if the north and south community center are done it would move back the improvements they want until approximately the 2007-2008 timeframe. He acknowledged the Judges’ concerns and agreed that there is a need to expand the courts stating that they need other court service center locations in Washington County. Mayor Shiely suggested that Council review the issues further and schedule a workshop for further discussion before voting. MOTION BY KOHLS, SECONDED BY RICE, TO APPROVE SENDING A LETTER TO WASHINGTON COUNTY STRONGLY SUPPORTING A SERVICE CENTER LOCATION IN THE CITY OF COTTAGE GROVE. MOTION CARRIED 5-0. PAY BILLS MOTION BY RICE, SECONDED BY WOLCOTT, TO APPROVE PAYMENT OF CHECK NUMBERS TO 129344 THROUGH 129530 TOTALING $678,371.61. (CHECKS 129344- 129370 IN THE AMOUNT OF $49,763.78 ISSUED PRIOR TO COUNCIL APPROVAL.) MOTION CARRIED 5-0. Mayor Shiely called a break at 8:40 p.m. Mayor Shiely called the meeting back to order at 8:55 p.m. WORKSHOP SESSION – OPEN A. Discussion to Provide an Update to the Council and Receive Feedback on Watershed Finance Related Issues. Community Development Director Lindquist explained that she had three items to review with th Council. She explained that the Watershed has purchased land north of 70 and that they Regular Meeting – June 4, 2003 Cottage Grove City Council Page 12 are trying to record the deeds by July 1, 2003. She stated that staff would not sign the deeds until they are in agreement with the area charges. She explained that the biggest issue is that they do not know yet how much the Central Draw Project would cost and how much land is needed for the drainage. She stated that the Watershed is purchasing enough land for the existing ponding needs noting that ponding could be modified. She stated that they are trying to work out the land issues and then determine the area charges. She stated that first the Watershed would pay area charges for any upland that they would not pond on. She stated that it would depend upon the grading noting that there could be slivers of land that are not developable. She explained that she would like to verify that Council is in agreement that they would have to pay area charges on any developable upland. She reviewed the area with Council. Community Development Director Lindquist noted that in the HDR Study local ponding was included in the area. Council Member Kohls asked roughly how many acres were they discussing. Council Member Wolcott clarified that it was his understanding that they were told to stay at 100 acres adding that it might have gone beyond that amount. Community Development Director Lindquist reviewed the Wozniak area with Council noting that it is a very large parcel of land. She stated that gravity sewer is an issue in this area. Council Member Kohls clarified the costs that Watershed would be responsible for. Community Development Director Lindquist explained that Cottage Grove, through the watershed plan, is paying approximately 12.5% for the Central Draw Project. Mayor Shiely asked if the Watershed is working with the Residents. Community Development Director Lindquist stated that many of the property owners are not planning to develop their land and have not provided any development schemes. She stated that the Wozniaks are currently talking with a development company. Community Development Director Lindquist explained that they need to sign the deeds on certain properties. She provided Council with an overview of the Rural Friendly policy stating that they told the Watershed that the people would have to pay at least one unit. She noted that it is credited to the parcels they are retaining in the future. Council Member Kohls asked how many properties they are looking at. Community Development Director Lindquist stated that they are looking at three properties. Community Development Director Lindquist stated that their third concern is in two parts. She explained that if the City needs any portion directly related to the regional ponding that is not required for local use that the City would have to pay any area charges on that portion, even if it is below the 100-year flood mark. She stated that her final item is if the City were to obtain property as part of the development, as an example Hidden Valley, and it is used as a regional pond, the Watershed would have to pay 50% of land costs to the City. Regular Meeting – June 4, 2003 Cottage Grove City Council Page 13 Council Member Kohls clarified that they would end up paying the costs now versus ten years from now when developed. Council Member Wolcott noted that the costs would eventually be covered by the developer. Community Development Director Lindquist explained that the Watershed is presently purchasing ahead of the development process. She stated that Staff is working with the Watershed in an effort to hold off until the City is ready to develop. She stated that this makes it easier to determine where to place a pond for drainage. Community Development Director Lindquist reviewed the larger financing for the entire project noting that they are rough numbers. She stated that the entire project is probably higher than the original forecast adding that the Watershed is going to review the cash flow based on existing land prices. She reviewed the Boundary Change Map with Council stating that it shows the areas that are included in the South Washington County Watershed District. She explained that they are presently taxing everyone living in the Watershed district for these improvements. She stated that they could pay for the bonding by ad valorem tax adding that it may not be possible as Woodbury in considering a stormwater utility charge. She noted that the process would be very similar to how Cottage Grove does their stormwater utility charges. She explained that it would apply to the majority of the area. Mayor Shiely asked if the original proposal was 75/25. Community Development Director Lindquist confirmed. She stated that Cottage Grove is approximately half of the Watershed District area. Mayor Shiely clarified that the 75 is the Woodbury area. She asked for further clarification on how this impacts the East Ravine area. Community Development Director Lindquist explained that it was stated by the Watershed Board that without drainage from Woodbury they would not have done the project and therefore the entire benefiting subwatershed is Woodbury. Council Member Kohls clarified that they would have to add more to the stormwater utility fee. Community Development Director Lindquist confirmed. Council Member Wolcott stated that it would make more sense to add to the property taxes as the residents would get some benefit from the property taxes when doing their income taxes. He stated that he would prefer to see this included on the taxes and suggested reviewing the tax capacity on the homes in Cottage Grove versus Woodbury. He stated that Cottage Grove’s tax capacity is lower which would mean that the fees would be lower due to property values being lower. Council Member Rice suggested including it on their property tax bill and clarify within the billing what the charge is for. Council Member Kohls asked why Woodbury prefers a stormwater utility fee. Community Development Director Lindquist clarified that Woodbury was planning to pay all at the beginning and after they reviewed it was found that it would be better to pay down a portion first. She stated that the rates would be set based on what Cottage Grove needs for infrastructure. She explained that they want to keep the payments for the system within the area for those who would be using the system. Mayor Shiely agreed stating that this was one of her concerns. Regular Meeting – June 4, 2003 Cottage Grove City Council Page 14 Finance Director Hedberg clarified that the main goal for creating a rate charge is that those who benefit would pay for it. He stated that if it is done via the property taxes that they could not target certain areas or property uses. Mayor Shiely asked if there would be a way to clarify the payment. Council Member Kohls asked if rural residents paid for stormwater fees for urban areas. Community Development Director Lindquist clarified that they do not stating that it was only done through area charges. Council Member Kohls confirmed that residents in the rural areas do not contribute any money for the stormwater system currently in use. She asked if it would be fair to ask others in rural areas to pay now. She stated that it would be very difficult to justify. Mayor Shiely agreed stating that the Watershed is putting more pressure for development to occur faster than they want. Community Development Director Lindquist stated that City staff is assuming some development could occur in 2005. Finance Director Hedberg stated that Cottage Grove’s share towards the bonds, annually, is approximately 12%. Finance Director Hedberg clarified that if they were to include this into their stormwater utility that they would have to double their rates, which is not what Staff is suggesting. Community Development Director Lindquist stated that even if they decided to pay the bond project costs that individuals would still end up with storm water costs. Council Member Kohls clarified that they can start paying now or they have the option to pay as it develops. Community Development Director Lindquist stated that the Watershed is presently using a taxation system and that if they begin in 2007 they would start bonding. She stated that it has been on record as suggesting the Watershed develop the system as development in Cottage Grove occurs. Council Member Kohls asked why they are concerned about funding today versus waiting. She stated that it seems the development practices north of them have created this issue. Council Member Wolcott suggested reviewing the areas. Mayor Shiely stated that she is concerned for people outside of the area paying for something they would not benefit from. She expressed concerns that there could be legal issues. Council Member Wolcott asked if they would have enough in area charges to pay for everything. Community Development Director Lindquist stated that Matt has been very supportive of their concerns noting that they would probably begin in the lower portion first. Council Member Wolcott stated that they have to be sure that they are receiving enough in area charges to cover payment for this project. Council Member Kohls stated that it appears that they are setting themselves up to force development. She asked if the residents would feel any pressure from the City if they were to choose not to develop. Regular Meeting – June 4, 2003 Cottage Grove City Council Page 15 City Administrator Schroeder stated that there are several acres that would probably develop earlier than later. Community Development Director Lindquist stated that they are not sure of the Watershed numbers yet. City Administrator Schroeder stated that it is possible that they could make some adjustments to the numbers throughout the process. Mayor Shiely clarified that when they established the stormwater utility that they did not have to show any benefit. City Administrator Schroeder confirmed. Finance Director Hedberg explained that the City held a public hearing in addition to a series of smaller meetings to provide an opportunity for public discussion and input. Mayor Shiely clarified that they have alternatives to consider in the event that they do run into any issues. City Administrator Schroeder confirmed that there are alternatives. Council Member Kohls stated that she is leaning towards putting it off until they are ready to develop and suggested that they monitor to ensure no financial surprises. Community Development Director Lindquist clarified that the Council’s preference is to set the payment up so that the east ravine is paying for the City’s share of the Central Draw Project. WORKSHOP SESSION – CLOSED NONE ADJOURNMENT MOTION BY KOHLS, SECONDED BY RICE, TO ADJOURN THE MEETING AT 9:45 P.M. MOTION CARRIED 5-0. Respectfully submitted, Bonita Sullivan TimeSaver Off Site Secretarial, Inc.