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HomeMy WebLinkAbout2003-06-18 MINUTES REGULAR MEETING COTTAGE GROVE CITY COUNCIL June 18, 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 Craig Woolery, Deputy Director of Public Safety Nancy Hanzlik, City Engineer Les Burshten, Public Works Director Corrine Thomson, City Attorney Michelle Wolfe, Assistant City Administrator Sheila Colbert, 7590 Irish Avenue South, expressed concerns regarding the closing of the th northbound lanes for both Ideal and Idsen, at the junction of 65 Street. She stated that she would like to know why the barricades were approved. She stated that they are public streets adding that she pays taxes to access and use the City streets. She asked if there was a precedent noting that she is unable to go northbound from her home due to the construction. She reviewed the route she has to take with Council stating that it is extremely inconvenient and that she does not feel safe with the detour route she is forced to take. She asked that the City notify citizens prior to approving a detour that affects so many. thth Council Member Rice noted that Inwood Avenue from 75 to 65 is wide open. Ms. Colbert explained that the area referenced is part of the detour stating that she does not like to drive in that area, as she does not feel safe. Council Member Kohls clarified that Ms. Colbert is referring to the barricades located at Ideal th and 65 Street. Ms. Colbert stated that the City placed four barricades at Ideal and five barricades at Idsen. Regular Meeting – June 18, 2003 Cottage Grove City Council Page 2 Council Member Kohls noted that she received several calls from residents and that she visited the area. She explained that this is a County project and that she discussed the concerns with the County. She stated that Ideal is a very busy street and clarified that the residents are concerned with the increase in the number of people driving along Ideal at a high speed. She stated that some of the residents asked if the barricades could be moved th one block over to the south side of 66, which would allow residents access into their neighborhood. She explained that she discussed the residents’ concerns with the County Engineer. She stated that the County Engineer clarified the County concerns regarding additional traffic on Homestead. She stated that the County Engineer was not willing to move the barricades due to the potential hazards to Homestead. Ms. Colbert stated that she spoke with individuals in Washington County noting that each individual told her the barricades were a City decision. Ms. Colbert expressed concerns stating that she was told that she would get a traffic ticket if she took Innsdale. She asked for clarification of the law that states she cannot drive on a city street adding that the Highland area is not a gated neighborhood. City Engineer Hanzlik clarified that the reason she could be ticketed is because construction signs are posted in the area stating ‘Local Traffic Only,’ which means access is allowed only for those who live in the immediate area. Ms. Colbert referenced the black and orange sign posted on the southbound side of Ideal th and 65 stating that the sign was posted prior to construction. Deputy Director of Public Safety Woolery acknowledged and explained that the local residents have a long history of concern regarding high-speed traffic in that area. He further explained that the sign has helped to alleviate and satisfy some of the concerns of the Ideal Avenue residents. Ms. Colbert stated that she is a tolerant person adding that her frustration is with the amount of construction currently in progress throughout Cottage Grove. She explained that the suggested detour takes her totally out of her way. She stated that it is very stressful not being able to gain reasonable access to her neighborhood. Deputy Director of Public Safety Woolery acknowledged her frustration and explained the need for the improvements. He clarified that each location has their own logistics noting that when the work is completed it will be a big improvement for the residents of Cottage Grove. Mayor Shiely acknowledged Ms. Colbert’s frustration noting that the construction and detour affects everyone. She explained that the County would be done with the construction in approximately three months. She further explained that the decision to close Ideal was based upon requests and concerns expressed by residents regarding safety due to the increase in traffic. She stated that it was her understanding that the barricades would be a benefit for the neighborhood. Ms. Colbert stated that it is her belief that this is not an issue of high-speed traffic on Ideal but that the residents of Highland do not want through traffic in their area. She stated that prior to the area being developed twenty-eight years ago each road was already plotted and included on the proposed plan. She stated that everyone in the Highland area knew the street design prior to moving into the area. She stated again that this is not an issue of speed on Ideal but an issue of who they want in the neighborhood. Regular Meeting – June 18, 2003 Cottage Grove City Council Page 3 Nancy Hesbolt, stated she is a resident of the Highlands neighborhood and acknowledged the traffic concerns and access. She stated that it is not appropriate to shutout residents to the degree that they are not able to get into their own neighborhood. She explained that she has to take a 2-mile detour just to get into her neighborhood. She stated that everyone is traveling to the north not the south and suggested placing the barricades one block south to th 66 Street and allow only local traffic at that point. She stated that if she sees a sign that states ‘Local Traffic Only’ that she does not drive into the area noting that she should be able to drive into her own neighborhood. She stated that the concerns regarding the impact to Homestead Avenue are not a big issue as Homestead is not a street that allows traffic to move quickly due to the number of stop signs and parked cars along the street. She stated that people are moving the barricades and signs, and driving on grass, in order to gain access to their homes. She further stated that access to their homes is a higher concern than the increase in traffic. Mayor Shiely stated that she would discuss moving the barricades with the Public Safety Director. City Engineer Hanzlik stated that she has discussed the issues and concerns with the County. She stated that the County is willing to do whatever works for the residents. Mayor Shiely agreed stating that she is not opposed to reviewing their suggestions. Council Member Kohls stated that it would make sense to consider moving the barricade one block south. She stated that she spoke with Sandy Cullen of Washington County and asked the County to review the safety issues. CALL TO ORDER The City Council of the City of Cottage Grove, Washington County, Minnesota held a regular th meeting on Wednesday, June 18, 2003, at the Cottage Grove City Hall, 7516 80 Street South. Mayor Shiely called the meeting to order at 7:30 p.m. The Rose of Sharon Boy Scout Troop #237 led the Pledge of Allegiance. 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 Craig Woolery, Deputy Director of Public Safety Nancy Hanzlik, City Engineer Regular Meeting – June 18, 2003 Cottage Grove City Council Page 4 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 changes stating that Item 4K has been moved to Item 2A and Item 8E has been moved to 12B as a workshop. MOTION BY WOLCOTT, SECONDED BY RICE, TO APPROVE THE AGENDA AS AMENDED. MOTION CARRIED 5-0. APPOINTMENTS AND PRESENTATIONS A. PRESENTATIONS 1. 2002 Comprehensive Annual Financial Report Mark Gibbs, Redpath Auditors, provided the Council with a review of the 2002 Audit results. He stated that the City still receives a positive tax collection rate of 99.6%. He reviewed the LGA reductions noting that local government aid would be eliminated over the next two years. He stated that the General Fund increased by $93,000 noting that a variety of items caused the increase, which was a positive factor for the City and the City’s bond rating. He stated that new accounting standards would become effective in the next year. He explained that with the implementation of the new GASB 34 as well as a fee permit development form and new audit standards that the audit process would become more complex, difficult and time consuming for City staff. He stated that the process would encompass more departments outside of the Finance department. He reviewed the 2003 Aid Loss, the General Fund increase and the development fee and permit forms with Council. He recommended that the City review the policies and procedures to ensure that they are in compliance. He stated that a new fraud auditing standard has been implemented and explained that it requires auditors to look for fraud during the process of an audit. He noted that GASB 34 requires that the City have a full accrual government-wide financial statement in addition to modified accrual individual fund statements. He stated that his firm has implemented GASB 34 in six cities so far and that the process is more time consuming than previously imagined. He stated that the Finance Department has taken several steps to implement certain portions adding that there would be a lot of work over the next year and suggested allocating sufficient time to complete. Mayor Shiely thanked Mr. Gibbs for his time stating that the Financial Analysis and Financial Report is available for public review. B. APPOINTMENTS Regular Meeting – June 18, 2003 Cottage Grove City Council Page 5 NONE APPROVAL OF MINUTES A. June 7, 2003 Special Meeting Mayor Shiely stated that the minutes stand approved as presented. CONSENT CALENDAR MOTION BY RICE, SECONDED BY GROSSKLAUS, TO: A. ACCEPT AND PLACE ON FILE THE FOLLOWING MEETING MINUTES: i. ECONOMIC DEVELOPMENT AUTHORITY OF MAY 13, 2003. ii. PUBLIC WORKS COMMISSION OF MAY 12, 2003 B. ADOPT RESOLUTION NO. 03-119 AUTHORIZING SOLICITATION OF GRANT FUNDS FROM A VARIETY OF TWIN CITIES FOUNDATIONS FOR COTTAGE GROVE RECREATION DEPARTMENTS U-LEAD AND U/R YOUTH VOLUNTEERS. C. AUTHORIZE ISSUANCE OF A SINGLE-OCCASION GAMBLING PERMIT TO SOUTH WASHINGTON COUNTY SCHOOLS COMMUNITY EDUCATION/DBA SOUTH WASHINGTON SENIOR CENTER TO CONDUCT A RAFFLE AT 7362 EAST POINT DOUGLAS ROAD ON OCTOBER 10, 2003. D. AUTHORIZE ISSUANCE OF AN OUTDOOR EVENT PERMIT TO NEW MOON RESTAURANT, INC./DBA NEW MOON RESTAURANT AND SPORTS BAR TO CONDUCT AN OUTDOOR DANCE ON JULY 12, 2003. E. ADOPT RESOLUTION NO. 03-120 AUTHORIZING THE TRANSFER OF REAL PROPERTY. F. AUTHORIZE CITY HALL SECURITY MEASURES AS RECOMMENDED BY PUBLIC SAFETY IN THE ESTIMATED AMOUNT OF $3,000.00 FROM THE BUILDING REPLACEMENT FUND. G. ADOPT RESOLUTION NO. 03-121 PROCLAMATION – AUGUST 15-17, 2003 AS GREAT LAKES/GREAT ROCKS DAYS IN THE CITY OF COTTAGE GROVE. H. AUTHORIZE ISSUANCE OF AN OFF-SALE 3.2 MALT LIQUOR LICENSE TO RBF CORPORATION OF WISCONSIN/DBA RAINBOW FOODS. I. AUTHORIZE ISSUANCE OF A TOBACCO LICENSE TO RBF CORPORATION OF WISCONSIN/DBA RAINBOW FOODS. J. ADOPT RESOLUTION NO. 03-122 APPROVING FINAL PAYMENT IN THE AMOUNT ND OF $8,502.70 TO S.R. WEIDEMA, INC. ON THE KINGSBOROUGH WOODS 2 ADDITION PROJECT. K. MOVED TO 2A - PRESENTATIONS L. PROCLAIM TUESDAY, AUGUST 5, 2003 AS NATIONAL NIGHT OUT IN THE CITY OF COTTAGE GROVE AND INVITE ALL CITIZENS TO JOIN THE MEMBERS OF THE POLICE DEPARTMENT AT WOODRIDGE PARK. Regular Meeting – June 18, 2003 Cottage Grove City Council Page 6 M. APPOINT CHAD THIELMAN TO THE HUMAN SERVICES/HUMAN RIGHTS COMMISSION. N. ACCEPT THE RESIGNATION OF AL BOCHE FROM THE PARKS, RECREATION AND NATURAL RESOURCES COMMISSION AND DECLARE A VACANT SEAT WITH A TERM ENDING DATE OF FEBRUARY 28, 2004. O. ADOPT RESOLUTION NO. 03-123 APPROVING A CONDITIONAL USE PERMIT TO ALLOW THE INSTALLATION OF TWO ANTENNAS ON THE WEST DRAW WATER TOWER BY THE SOUTHEAST METRO AMATEUR RADIO CLUB. P. ADOPT RESOLUTION NO. 03-124 APPROVING A CONDITIONAL USE PERMIT TO ALLOW THE INSTALLATION OF TWO ANTENNAS ON THE INWOOD AVENUE WATER TOWER BY THE SOUTHEAST METRO AMATEUR RADIO CLUB. Q. APPROVE CHANGE ORDER NO. 5 FOR THE HARDWOOD AVENUE UTILITY AND STREET AND LIGHTING IMPROVEMENTS PROJECT FOR RELOCATING TOP SOIL AND GRADING OF KOHL’S SITE TO THE REVISED ELEVATIONS PROVIDED BY WESTWOOD PROFESSIONAL SERVICES, INC. IN THE AMOUNT OF $63,000.00. R. ADOPT RESOLUTION NO. 03-125 APPROVING CONSTRUCTION PLANS AND ST SPECIFICATIONS AND SETTING A BID DATE FOR MISSISSIPPI DUNES 1 ADDITION – UTILITY, STREET AND STREET LIGHTING IMPROVEMENTS. S. ADOPT RESOLUTION NO. 03-126 APPROVING THE FINAL PLAT NAMED PINE TH SUMMIT 7 ADDITION. T. RECEIVE INFORMATION REGARDING MODIFICATION TO THE ENTRANCE TO 3M—COTTAGE GROVE. U. ADOPT RESOLUTION NO. 03-127 ACCEPTING DONATIONS FROM BONESTROO, ROSENE, ANDERLIK & ASSOCIATES, INC. ($300); HASTINGS FORD ($250); SHANNON GLASS COMPANY, INC. ($250); TCF FOUNDATION ($100); ADVANCED SPORTSWEAR ($75); DIANE CRATER D.D.S. ($50); COTTAGE GROVE AREA TH JAYCEES ($25); FOR COTTAGE GROVE’S 10 ANNUAL YOUTH SAFETY CAMP. V. AWARD THE HIGHWAY 61 STORM SEWER CROSSING CLEANING AND TELEVISING PROJECT TO VEIT AND COMPANY. W. RECEIVE INFORMATION ON THE PARK TRUST FUND BUDGET. 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 NONE PUBLIC HEARINGS A. Conduct Public Hearing on the Proposed Assessments for the Removal of Public Safety Hazard at 10876 Ideal Avenue South. Regular Meeting – June 18, 2003 Cottage Grove City Council Page 7 Community Development Director Lindquist stated that the public hearing is for the assessment for work the City has taken on with the cleanup of A&F Auto. She stated that the total cost for the assessment relates to the actual costs for tire removal, legal fees, staff time and fees. She stated that the public hearing was published in the local newspaper in accordance with City requirements. Mayor Shiely opened the public hearing at 7:48 p.m. Mayor Shiely closed the public hearing at 7:49 p.m. MOTION BY WOLCOTT, SECONDED BY RICE, TO ADOPT RESOLUTION NO. 03-128 ADOPTING SERVICE CHARGES FOR THE REMOVAL OR ELIMINATION OF PUBLIC SAFETY HAZARDS FROM PRIVATE PROPERTY LOCATED AT 10876 IDEAL AVENUE SOUTH (PID #29.027.21.44.0006). MOTION CARRIED 5-0. BID AWARDS A. Consider Awarding the Construction Contract for Homestead at Highland Hills to Volk Sewer & Water, Inc. City Administrator Schroeder stated that the low bidder on the project was Volk Sewer & Water with a base bid of $685,582.82, which comes under the engineer’s estimate of $760,000.00. He noted that there is a minor irregularity in their bid that was not acknowledged in addendum #1. He explained that Volk Sewer & Water, Inc. used the revised bid form included with Addendum #1, which is considered acknowledgement of the addendum. He stated that this was discussed with the City Attorney and that the City has also received a letter from the second lowest bidder, Three Rivers Construction, Inc., stating that they would not contest the bid. He noted that the letter was included for Council review. He stated that based on the minor irregularity and the letter from Three Rivers Construction, Inc. that Staff recommends that the Volk Sewer & Water, Inc. bid be accepted as valid. MOTION BY WOLCOTT, SECONDED BY KOHLS, TO AWARD THE CONSTRUCTION CONTRACT FOR HOMESTEAD AND HIGHLAND HILLS TO VOLK WATER & SEWER, INC. MOTION CARRIED 5-0. UNFINISHED AND NEW BUSINESS A. Consider Passing an Ordinance Amending Title 3, Chapter 3 of the Cottage Grove City Code Extending the Closing Time for On-Sale Liquor Sales to 2:00 a.m. City Administrator Schroeder explained that the State, in the last legislative session, allowed the opportunity for liquor establishments to extend their hours and remain open until 2:00 a.m. He further explained that the extension of hours requires an amendment to the current City Code noting that a permit would be required from the State and a fee would apply. He Regular Meeting – June 18, 2003 Cottage Grove City Council Page 8 stated that the fee would be used to pay for additional highway patrol officers. He referenced a survey, included in the Council packet, stating that the City liquor establishments are okay with either side of the issue. He stated that if approved by Council, there would be four establishments that would apply for the State permit. Mayor Shiely stated that if State law states that an establishment has the right to be open until 2:00 a.m. that Cottage Grove businesses deserve the right to remain open if they so choose. She stated that she would be very uncomfortable if they do not allow an extension of hours while neighboring communities do. Council Member Kohls agreed stating that she has struggled with this issue. She reviewed her concerns regarding public safety with Council stating that she would go along with the extension of hours, as the businesses need to remain competitive. She noted that she did an informal poll of residents regarding the extension of hours and reviewed the results with Council. She asked if there are statistics that could be tracked and if it is determined to be detrimental could the amendment be repealed. City Administrator Schroeder stated that the amendment could be repealed. Council Member Wolcott stated that he too has struggled with this issue noting that most DWI’s are written between 1:00 a.m. – 2:00 a.m. He stated that he discussed his concerns with Chief Mickelson noting that if Public Safety feels okay with the extension and the State is allowing it, that he would not vote against the amendment. Council Member Grossklaus expressed his concerns stating that the State has created a serious issue. He noted that the State collects money to assist the State Troopers adding that none would be used to assist local law enforcement agencies. Council Member Kohls stated that when she asked if any of the funds would be provided to assist local police departments she was told no funds would be provided at the local level. Council Member Wolcott asked if the extension would affect the current license fee. City Attorney Thomson stated that she would verify noting that she did not think the license fee can be revised. MOTION BY RICE, SECONDED BY WOLCOTT, TO ADOPT ORDINANCE NO. 736 AN ORDINANCE FOR THE CITY OF COTTAGE GROVE, MINNESOTA, AMENDING TITLE 3, CHAPTER 3 OF THE COTTAGE GROVE CITY CODE RELATING TO CLOSING TIME FOR ON-SALE LIQUOR SALES. MOTION CARRIED 5-0. B. Consider Appointing Members to Serve on the East Ravine Citizens Advisory Task Force. Community Development Director Lindquist explained that this issue was discussed at the last Council meeting. She stated that she discussed the Citizens group with Mark Koegler and he is fine with the group as a separate entity. She stated that the list has been modified Regular Meeting – June 18, 2003 Cottage Grove City Council Page 9 to include two new names in addition to everyone who has expressed an interest in being involved. Mayor Shiely asked if all of the people were included on the map. Community Development Director Lindquist stated that they were. Mayor Shiely stated that the map was very helpful noting that they do not have adequate representation from the urban areas. She reviewed the geographic representation of the proposed members noting that seven of the individuals live in the East Ravine and the remaining nine individuals are geographically spread out in the urban areas. She stated that six of the individuals are within close proximity of each other at Military Road and suggested that they ask the group to elect one or two representatives for their area. She explained that the entire concept of planning our future, as a City, is a community-wide issue and should have a geographic balance. Council Member Rice agreed with Mayor Shiely’s suggestion stating that six representatives from one area is a large group. He expressed concerns with the last individual on the list and asked what they would bring to the group. Community Development Director Lindquist stated that in this setting it would probably not be appropriate. She stated that she would refer this individual to the City website for information and updates. The Council agreed to remove the individual’s name from the list. Council Member Kohls stated that she is more inclined to leave everyone on the list versus requesting representatives from a cluster of individuals. She stated that she is okay with the suggestion for two representatives but would be happier if all of the individuals were included. She acknowledged that there is a lack of representation in the urban areas of Cottage Grove and encouraged representation from the urban area. Mayor Shiely expressed concern for the residents along County Road 19 noting that they are the group most impacted by what happens in the east ravine. Council Member Grossklaus asked if they have representation from all of the Commissions. Mayor Shiely stated that the Planning Commission, the EDA and the Public Works Commission would be involved. Council Member Kohls stated that the Public Safety Commission and the Historical Society are also interested in being involved. Mayor Shiely thanked everyone who volunteered and encouraged the group along Military Road to elect representatives from their area. Council Member Wolcott suggested choosing two of the individuals and assign an alternate. Council Member Grossklaus asked why they would want to eliminate people who are volunteering. He stated that it is very difficult to get volunteers and he does not want to deny an opportunity to individuals who are interested. Regular Meeting – June 18, 2003 Cottage Grove City Council Page 10 Mayor Shiely acknowledged Council Member Grossklaus’ concerns noting that the decisions made through this group would have an affect on everyone for the next fifty years. She stated that the group along Military would not be as heavily impacted as others and reviewed the geographic area with Council. MOTION BY WOLCOTT, SECONDED BY RICE, TO APPOINT MEMBERS TO THE EAST RAVINE CITIZENS ADVISORY TASK FORCE AND ASK VOLUNTEERS FROM MILITARY ROAD TO SELECT TWO REPRESENTATIVES WITH ONE ALTERNATE. MOTION CARRIED 5-0. C. Receive Update on Nuisance Complaint Program and Provide Direction to Staff regarding Commercial and Industrial Trash Container Storage. Community Development Director Lindquist reviewed the current enforcement process and how it came about that the Thompson Grove neighborhood would be the first neighborhood for more intensive enforcement. She stated that Staff has been directed to verify the property compliance and post a door tag for small maintenance issues or send a courtesy notification to residents with more extensive concerns. She noted that additional correspondence, citations or fines could be imposed if non-compliance continues. She stated that use of the door tag significantly reduces staff time with addressing single, minor violations and allows inspectors to effectively canvass a larger area and thoroughly identify additional concerns within the immediate neighborhood. She explained that the department has taken a two-pronged approach for nuisance- complaint enforcement. She stated that they continue to receive complaints and handle enforcement in a similar manner to what previously occurred. She explained that the difference is that during the site inspection, inspectors will note other infractions in the immediate area. She stated that as of June 11, 2003 Staff has received and processed 226 nuisance complaints. She stated that the other process involves a more concentrated review of specific neighborhoods. She explained that the inspectors have been working on the west side of Highway 61 since spring. She stated that the Thompson Grove neighborhood review occurred in three phases with a fourth phase remaining. She said that the review of the neighborhood was done in four stages due to the large number of properties in the area. She reviewed the results and compliancy with Council. Mayor Shiely stated that they have received many comments, at varying degrees of anger, regarding the trash bins. She stated that most have said they have stored their trash bins outside for years and questioned enforcement now. Community Development Director Lindquist stated that they have recently received several inquiries about commercial properties in the City and why they are not held to the same standards as residential properties. She explained that the specific issue deals with trash bins in public view. She reviewed the ordinance with Council stating that the ordinance notes that commercial and industrial businesses that provide their own trash containers must keep the “containers in a storage area or building which can be locked.” She noted that the Regular Meeting – June 18, 2003 Cottage Grove City Council Page 11 ordinance also states that business owners who use “ a container provided by the licensed private collector shall keep the container so located as to be out of the public view as far as possible.” She stated that she has discussed this issue with the City Attorney and it was indicated that the City has the ability to enforce certain performance standards. She noted that the current ordinance is a bit ambiguous. Community Development Director Lindquist referenced the G-Will site stating that it is recommended that if the Council would like to require all commercial and industrial property owners to construct a trash enclosure, the ordinance language should be modified so that the language is clear. She stated that they have been working with individuals and locations to come into compliance as other site improvements occur. She noted that Council should be aware that trash enclosures are fairly expensive. She stated that Staff has seen costs in the $10,000 to $15,000 range for trash enclosures. She stated that if Council would like to require enclosures, a reasonable time period for compliance should also be determined. She stated that there might also be properties that have enclosures that are too small for their needs and they would need to expand the structures. She stated that Staff is requesting direction from Council on this issue. Council Member Kohls stated that trash bins are not the first thing she notices when driving through a neighborhood. She stated that there has been a lot of time and money spent telling people where to put a trash can noting that the ordinance states that it should be out of view as best as possible. She asked if anyone has spoken to the businesses not managing their trash noting that the costs to comply are huge. She stated that she drove past several of the parks and asked what the City does with their trash bins. She stated that many of the park bins do not have covers or plastic bags. She asked if the Public Works Department has enclosures for the trash bins. Council Member Grossklaus explained that the park trash is picked up every evening. He stated that this is not a big issue noting that if they were to allow garbage cans to be out and not covered that trash can be blown all over an area. Council Member Kohls asked if the view of garbage cans is really that big of an issue. She clarified that her understanding of the nuisance ordinance is to help resolve problem properties and to send a $100 citation is a bit strong for a trash container location. Mayor Shiely stated that it is apparent, through residents’ letters, that the issue has been concentrated on the west side of Cottage Grove. She stated that many on the west side have expressed concerns that they are being singled out and discriminated against. She explained that there is a problem with the enforcement of the ordinance adding that it is an unfair concept that some can keep their trash bins out while others are required to enclose them. She further explained that if all 10,000 homes in the community decided to leave their trash bins out that it would be noticed. She stated that it has to be all or none and include the City, commercial, industrial, and residential. She stated that this is about pride in the community and improving the look of the community. She stated that she sympathizes with those who feel singled out adding that all would be targeted for compliance at some point. Regular Meeting – June 18, 2003 Cottage Grove City Council Page 12 Council Member Kohls stated that several residents told her that the residents had been told they would receive a $100 fine if the trash bins were not kept in the garage noting that the ordinance states that the trash bins be kept out of view as much as possible. She asked if inspectors have been telling residents they have to keep the trash bins in their garage. Community Development Director Lindquist explained that they are being told that the trash bins must be out of public view, which is they basically must not be visible from the road. She clarified that they are not just checking for trash bins and noted that they are finding a lot of other violations. Michael Misner, 8895 Hamlet Avenue South, stated that he received a letter clearly stating that his trash bin has to be kept in the garage. He suggested creating a code that clarifies the type of container that could be used. Council Member Grossklaus stated that he does not want the City to get into the habit of policing the type of trash bins that can be used. Gerald Haagen, 8196 Grange Boulevard, reviewed his understanding of the code and suggested that the City review the commercial and industrial areas for compliance too. He suggested placing chain link fencing with white slates noting that this would bring the cost down per unit and would be done a lot easier with fewer problems. Council Member Grossklaus suggested making sure verbiage does not state ‘in garage’ but out of view. Council Member Wolcott stated that each inspector has to have the same understanding and the same set of rules. He stated that it should be consistent for all residents. Council Member Kohls asked what the City is going to do with their facilities. Public Works Director Burshten stated that he would review Council’s concerns and discuss the issues with the Public Works Staff. D. Consider Approving the Resolution Supporting Re-Formation of the Lower St. Croix Valley Water Management Organization. Mayor Shiely reviewed the resolution with Council and asked for clarification noting that there are few Cottage Grove residents living within this Watershed area. City Engineer Hanzlik clarified that they are requesting two representatives for the area. MOTION BY SHIELY, SECONDED BY RICE, TO APPOINT CHERYL KOHLS AS A REPRESENTATIVE FOR THE LOWER ST. CROIX VALLEY WATER MANAGEMENT ORGANIZATION. MOTION CARRIED 5-0. Council Member Kohls asked if they have a boundary map. City Engineer Hanzlik stated that they were provided with maps for the South Washington County Watershed district and Regular Meeting – June 18, 2003 Cottage Grove City Council Page 13 Mississippi Watershed district and that they are trying to obtain the boundary map specific to the area. Mayor Shiely asked for clarification of the percentage breakdown found in the draft agreement. City Engineer Hanzlik explained that it is based upon the population and that Cottage Grove has 13% of the watershed district. She stated that the tax capacity for Cottage Grove was 14% and the market value was 15%. She stated that this was based on the 2000 census and that they have not formalized a budget at this time. City Engineer Hanzlik stated that they are not sure on the funding at this time. She stated that they have not agreed to a plan yet adding that this would be a part of the negotiation. Council Member Rice expressed concerns. Council Member Wolcott asked for further clarification of the proportion shared and if they would have taxing authority. City Engineer Hanzlik clarified that the purpose of the WMO is to avoid being taken over by the other Watershed group. She explained that if this were taken over by the Valley Watershed it would be more expensive noting that the WMO would be the less expensive route. Council Member Wolcott asked who the driving force is on this issue. City Engineer Hanzlik explained that this is a part of the history that came out of the Washington County Water Governance Study. City Engineer Hanzlik explained that the BWSR Representative has imposed a one-year time limit to get joint Council representation. Council Member Wolcott clarified his understanding that if there are three Cities that they would need two representatives for each City. City Engineer Hanzlik stated that it could be more. She stated that they could have two prime representatives and one alternate or one main representative and one alternate. She explained that Council should determine representation by a joint powers agreement. Council Member Wolcott encouraged strong representation stating that there is a need for checks and balances. He stated that it appears that the Cities of Afton, Cottage Grove and Denmark are involved and suggested two representatives from each unit of government and one alternate. City Engineer Hanzlik stated that representation has not been determined yet noting that all of the Cities are currently working on their comments. MOTION BY SHIELY, SECONDED BY KOHLS, TO ADOPT RESOLUTION NO. 03-130 SUPPORTING RE-FORMATION OF THE LOWER ST. CROIX VALLEY WATER MANAGEMENT ORGANIZATION. MOTION CARRIED 5-0. Council Member Wolcott asked the City Attorney to review the Joint Powers Agreement. He expressed concerns stating that a few items that did not make sense. City Attorney Thomson Regular Meeting – June 18, 2003 Cottage Grove City Council Page 14 stated that it appears to be drafted by the Denmark City Attorney and stated that she would review the draft. Council Member Rice stated that the organization would be governed by three board members as stated on page 4, section three. He stated that his preference would be one representative for each City. City Engineer Hanzlik stated that they discussed representation from each City at the last meeting. Council Member Kohls stated that her only concern with the Joint Powers Agreement is on page 10—the discussion regarding regional projects. She noted that they would be paying for 1/3 of the regional project adding that Cottage Grove has only 12% of the land. She stated that she does not agree with this at all. Council Member Wolcott clarified that this is why he is requesting that the City Attorney review it further. Mayor Shiely asked if they have a choice. Council Member Kohls stated that it is her understanding that if all three communities do not agree to this that it does not happen and they would become members of the other Watershed District. She stated that she would be more comfortable working with Afton and Denmark versus the larger mass. E. This Item was moved to Item 12 – Open Workshop. RESPONSE TO PREVIOUSLY RAISED COUNCIL COMMENTS AND REQUESTS NONE COUNCIL COMMENTS AND REQUESTS Mayor Shiely stated that the Great Grove Get Together was a success and thanked Gary Kjellberg and all Committee members for doing such a wonderful job. Gary Kjellberg thanked Mayor Shiely adding that he would like the Community to know that many of the City Staff members were also involved and put in a lot of hours. He thanked Zac Dockter, Molly Root, Jenny Jennings and Caron Stransky in addition to the Public Works and Public Safety Departments. He stated that the City employees went all out this year noting that community volunteerism is down. She suggested that Council consider this issue before next year. Mayor Shiely stated that funds have been released to continue the study on the Red Rock Corridor Commuter Rail. She stated that the Committee would continue to meet adding that some day there will be a commuter train running between Red Wing and Minneapolis. Mayor Shiely stated that on October 4, 2003 the City of Cottage Grove would be participating in a mock rail disaster funded and sponsored by CP Rail. She explained that it would be a citywide emergency situation that would take place near the Public Works facility. She stated that the simulation would include the hospital and emergency organizations in the area. She stated that Public Safety Director Mickelson asked if they could use this as an opportunity for the department to determine its role in the face of a citywide situation. She explained that it Regular Meeting – June 18, 2003 Cottage Grove City Council Page 15 would be useful to determine where they could be helpful and what they could do to assist. She stated that City Council would be called upon to participate noting that they are also considering a mock evacuation of the Langdon neighborhood. She stated that the mock emergency situation is scheduled for Saturday, October 4, 2003 and would last approximately four hours. Council Member Grossklaus asked for an update on Police Officer replacements for Officers that have recently retired. Deputy Director of Public Safety Woolery provided the Council with an update stating that they just hired Tim Morning noting that he started on Monday, June 16 and will begin Police Skills Academy in September. He stated that they have another interview scheduled and are in the background-check process with three other candidates. He stated that it is their hope to have all hires before Council in August. Assistant City Administrator Wolfe explained that they had been considering three medic candidates when two of the candidates decided, late in the process, not to accept the position. She stated that Staff is working hard throughout the process. She stated that the main concern is ensuring that they have a medic officer. She stated that the next scheduled interview is with a medic candidate. Council Member Wolcott noted the issues discussed during Open Forum extended into the start time for the regular Council meeting and he did not have the opportunity to note that he has had discussions with several residents in the Highlands area regarding closed roads. He acknowledged the suggestions provided by the residents of the area stating that he is not sure there is a good answer to solve the access issues. He urged Staff and Council to give this issue very careful consideration. He stated that moving the barricade in either direction is going to cause concern for either the Highland neighborhood or the Homestead neighborhood. He acknowledged that the detours are an inconvenience and encouraged the residents to be patient noting that it would be completed towards the end of August or the first part of September. City Engineer Hanzlik stated that the construction is running a bit behind schedule. She explained that Hinton could be delayed due to private utility relocation issues. An area resident stated that it is his understanding that State Law says that a barrier cannot be placed unless they are working on the road and that they are required to have a 60-foot turnaround for emergency purposes. City Engineer Hanzlik acknowledged that Staff is aware of the new fire code and is in the process of reviewing. th Council Member Kohls noted that the streetlights on 90 Street are still out due to the pavement management project. She stated that the lights have been out since May and asked for an update. Public Works Director Burshten stated that he would provide an update to Council at the next regular meeting. PAY BILLS Regular Meeting – June 18, 2003 Cottage Grove City Council Page 16 MOTION BY WOLCOTT, SECONDED BY RICE, TO APPROVE PAYMENT OF CHECK NUMBERS TO 129531 THROUGH 129801 TOTALING $1,095,490.38. (CHECKS 129531- 129542 and 129768-129801 IN THE AMOUNT OF $195,651.99 ISSUED PRIOR TO COUNCIL APPROVAL.) MOTION CARRIED 5-0. Mayor Shiely called a ten–minute break at 9:05 p.m. Mayor Shiely called the meeting back to order at 9:15 p.m. WORKSHOP SESSION – OPEN A. Provide Direction to Staff Regarding Potentially Extending Hamlet Avenue and Possible Future Development South of the Dead-End on Hamlet Avenue by Hamlet Park. Community Development Director Lindquist stated that part of discussion has been what to do with the bituminous part of road. She stated that Staff has put together some potential development concepts. She explained that the biggest difficulty with any future development in the area is the topography and potential future land use. She stated that the property to the east is industrial adding that one point of discussion is how this parcel could gain access. She stated that they have two options that could be considered. She stated that one would be to extend Hamlet into this property or extend Hamlet to come across the park area. She provided Council with an overview of the two layouts noting that it is a rough estimation of the lots based on a previous study. She explained that it does not take into consideration the topography or the drainage. She reviewed the proposed single-family unit with Council noting that the design is consistent with the type of development they are currently seeing in the area. Mayor Shiely noted that the current zoning for the area is R3 and asked for further clarification. Community Development Director Lindquist stated that the R3 zoning allows for a zero lot line for single-family, which would be a form of cluster home. She stated that the sizing is similar to a patio home. She stated that they also reviewed twinhomes noting that the footprint is the same size as what was built in the Pine Glen project. She stated that this option would require an amendment to rezone to an R4 or PUD. She stated that she wanted to show Council that there is a range of options that could be considered. She stated that the property is currently owned by WAG Farms. She stated that Staff would like to get a better idea of the type of development Council would like to see in this area. Community Development Director Lindquist stated that the current end of Hamlet is approximately 500 feet and that this cul-de-sac would be an extension of what the fire code allows for one access. She stated that she spoke with the Fire Department adding that they suggested a second access from the park area. She explained that the access would be for emergency purposes only. Regular Meeting – June 18, 2003 Cottage Grove City Council Page 17 Council Member Kohls asked for further clarification of the area the Parks Commission is discussing. She asked Community Development Director Lindquist to outline the area to show where the road would be extended through Hamlet Park. Community Development Director Lindquist reviewed the area with Council. Council Member Kohls asked if the ball fields would be lit. City Administrator Schroeder stated that at some point the fields would be lit. Council Member Kohls asked if there is a lot of bedrock in the area. She asked if the homes would be on a slab or would they be able to include basements. City Administrator Schroeder stated that they do not have that information available yet adding that they have not taken borings of the area. Council Member Kohls stated that if they decide to go with residential development in that area that she would be more inclined to agree with single-family due to the amount of possible traffic through that area. She stated that Hamlet is a very narrow street and developing single-family in that area would be consistent with the zoning. City Administrator Schroeder asked if her concerns were with respect to density or bedrock. Council Member Kohls clarified that density is more of an issue stating that it is not an appropriate location for multi-family. Council Member Grossklaus suggested senior housing for the area. He stated that it would work well for 35 patio homes. He stated that there is a definite need for senior housing in the area and encouraged the Council to consider the options. Council Member Kohls stated that she did consider senior housing noting that after reviewing current issues and suggestions she would prefer single-family development for the area. Gary Willems, 8199 Hamlet, stated that the lights were on at the park until after 10:30 p.m. noting that there is no enforcement at the park. He acknowledged that all of this would be a drastic change for everyone concerned stating that he would like Council to enhance the current neighborhood. He stated that he would have some consternation with the increase in traffic adding that he would prefer single-family homes with as low a density as is possible. He stated that he would prefer less than the current proposal. Council Member Kohls asked him how he would feel about 35 senior units. Mr. Willems stated that he could consider it and agreed that there is a need for senior housing in the community. Michael Misner, 8590 Hamlet Avenue South, clarified his understanding of the location for the proposed entrance to expand through the park. He asked if the Council would consider placing the homes along the area near the pump house. He suggested placing the park expansion next to school stating that it would bundle the area together and separate the residential area. City Administrator Schroeder clarified that the area in reference is currently zoned industrial. Mr. Misner asked if they could change the zoning. Mayor Shiely explained Regular Meeting – June 18, 2003 Cottage Grove City Council Page 18 that the City couldn’t come in, take property and rezone it. City Administrator Schroeder further explained that the homes would be basically surrounded by industrial without further action from the Council or City. Mr. Misner asked if they would place speed bumps at the entrance to the park to slow traffic down. City Administrator Schroeder acknowledged that traffic and speed are valid concerns. th He explained that the traffic would be directed from 95 versus the current area and a larger parking lot would be placed on the southeast side of park. Roger Hanson, 8932 Hamlet Ave, stated that he has lived in Cottage Grove since 1978. He explained that he was told at the time he purchased his home that there would not be any further development due to the topography of the area. He expressed concerns stating that 23 homes was a bit high and asked Council to consider limiting the number to 10-12 homes. He agreed that there is a need for senior housing stating that it would be a good idea for this area. He asked if they could expect a 30-foot pile of dirt at the end of the street if they decide to place a cul-de-sac. He referenced the dirt at the end of his street stating that he does not know where the dirt is coming from adding that the issue should be addressed soon. He asked if the assessments for new streets would be the responsibility of new residents to the area and would it lower his tax assessments. He agreed with the cul-de-sac as an option and suggested another fire path for emergency access only. Rhonda Colstad, stated that she is speaking for another resident who lives in the area. She explained that there is a deaf child in the area and there is concern for her safety. She suggested speed bumps in the area to slow traffic down noting that the night before she counted three vehicles that ran the stop sign. She asked if the police department could assign additional patrol in the area to help monitor the increased traffic. Mayor Shiely clarified that this is a separate issue from the Hamlet expansion. She suggested having the Public Safety Commission review the area. Deputy Director of Public Safety Woolery stated that they would review the area and suggested placing an unmarked car in area to get a better idea of the traffic issues. He stated that it would be better to have a clear idea of the situation before any construction begins. He stated that they would meet with Ms. Colstad to discuss the issues. Mayor Shiely asked how many homes could be built in the area if they are single-family homes and the zero lot line is ignored. Community Development Director Lindquist explained that they are probably looking at 3.2 – 3.5 units per acre. She stated that the proposal is not showing any ponding yet. She also noted that R3 is a smaller lot, which would mean more houses. Council Member Wolcott acknowledged the concerns expressed from the residents. He stated that his concern is with the bedrock and the homes not having a basement. He agreed with Council Member Grossklaus stating that they should get a developer to classify this as a senior housing proposal. He stated that it would be less driving and less traffic. He stated that they could build a quality home for the area adding that this is the direction that would be least intrusive to the current neighborhood. Regular Meeting – June 18, 2003 Cottage Grove City Council Page 19 Mayor Shiely asked how many acres would be involved. Community Development Director Lindquist replied 12 acres. Roxanne Willems, 8190 Hamlet, noted that Glendenning currently owns the property and asked Council if there is something already planned that the residents are not aware of yet. She asked why they are discussing and planning for this area now after not doing anything with the area for over thirty years. City Administrator Schroeder explained that the landowner has discussed developing this land for over two years. He further explained that the larger issue right now is how they are going to run the storm water through the area. He stated that they want to be sure it is placed in the right location adding that this was the initial issue that brought them to consider expanding the park area. He further explained that this discussion is not because the City has a strong desire to build homes but that they would like to try and fit things together in a way that would accommodate everyone’s concerns and needs. Mayor Shiely stated that presently they have not made any decisions. She stated that she does not favor development on this piece of land noting that she would prefer no development in this area at all. She expressed concerns regarding the increase in traffic in addition to the industrial development in the area. She expressed concerns regarding the bedrock noting that this development is different from the East Ravine. She stated that this is the first time Council has reviewed any of the information and that Council always welcomes community involvement. Another resident referenced concerns regarding traffic speed and reviewed the development process in his area. He explained that the streets are smaller and they have lower speed limit signs. He stated that this has helped to keep traffic speed down. He explained that in the beginning they had several of the same concerns adding that with the current circumstance he is satisfied with the traffic flow and speed of his neighborhood. He suggested that the City could possibly address the traffic issues in this area in the same fashion. Michael Misner asked for clarification stating that if this is a residential area what gives them the right to come in with trucks and dump dirt. He asked who is allowing this to happen. Public Works Director Burshten explained that the City has temporary easement rights to the area and that they are utilizing the area to store the dirt. He further explained that the dirt is used for other areas in the City in addition to the current area. He emphasized that this was a temporary situation. Bill Murphy, 8950 Hamlet, stated that he has lived in the area for 35 years and explained that the property was never developed because of the bedrock. He asked if anyone has actually gone out and tested the land to determine if it is suitable to build. City Administrator Schroeder acknowledged that the rock was a construction impediment and that no matter who builds on the land they would have to address it. He clarified that the City is not the developer. Regular Meeting – June 18, 2003 Cottage Grove City Council Page 20 Mayor Shiely asked if they have to decide on a configuration and a density at this point in order to determine where the storm water would go. She asked why they are making decisions on this property if the property owner has not indicated whether they plan to develop. City Administrator Schroeder explained that they are trying to determine the storm water issues before any decisions are made to develop the land. Ms. Colstad asked who would approach the property owner and purchase the land. Mayor Shiely clarified that it would be the developer. Another Hamlet Avenue resident noted that the area the City plans to expand for the park is currently zoned industrial and asked how the proposed area ended up residential. He suggested rezoning the area to industrial or condemning the property. Mayor Shiely explained that they do not know how the zoning for the area occurred. She clarified that Council has the power to up-zone property from residential to commercial but they cannot de-zone property from commercial to residential. She stated that the current owner eventually wants to sell the property as residential. She agreed that it would be a lot easier to develop the area as industrial. Mayor Shiely clarified that Council is not making any decisions right now. She stated that her concern is that whatever is done next should be discussed with the residents who would like to be involved in the process. She asked if a neighborhood meeting could be scheduled. Council Member Kohls agreed and suggested scheduling a meeting with the residents when WAG Farms begins to indicate their interest in developing the area. City Administrator Schroeder clarified that storm water issues is what is pushing this discussion and reviewed the process with Council. Council Member Kohls asked if the property value has been determined for the land. She stated that if the land is donated to the City for the park that it would be a tax write-off for the family. She asked if anyone has asked them what they would consider doing with the 12 acres. City Administrator Schroeder explained that ownership of the property is through a family trust. He explained that there are several different levels to the trust adding that some of the owners could be interested. Ms. Colstad asked if the landowner was approaching the City with an interest in selling the land. City Administrator Schroeder stated that the property owner has not approached the City. He clarified that the workshop discussion was to determine what to do with the storm water and he reviewed the storm-water issues with Ms. Colstad. He explained that this issue came out of the Pavement Management Project and that Staff is now trying to determine the best location for the storm water. Roger Hanson asked if the proposed cul-de-sac at the end of Hamlet would be made large enough for plows to turn around. Public Works Director Burshten stated that it would be big enough for the plows. Regular Meeting – June 18, 2003 Cottage Grove City Council Page 21 Mayor Shiely asked the residents to sign the sign-in sheet and to include their name, address and phone number. She assured the residents that Council would not make any plans without contacting the residents for their input. Council Member Kohls asked if any of the residents present have basements. All residents responded that they have basements. Council Member Rice clarified that Orrin Thompson stopped building in the area in 1958 because they could not dig through the rock. Mayor Shiely called a break at 10:24 p.m. Mayor Shiely called the meeting back to order at 10:33 p.m. B. Workshop to Provide Staff with Direction of Further Actions to be Taken to Address the Reductions to State Aids. City Administrator Schroeder stated that Legislature has taken action to address a $4.2 billion deficit. He stated that the State utilized several solutions to address the deficit including a reduction to the State payments to local governments. He stated that Cottage Grove receives two forms of state aid—Local Government Aid (LGA) and the Market Value Homestead Credit Program (MVHC). He reviewed the programs with Council. He stated that the changes in the legislation include reductions to state aids (LGA and MVHC) and the extension of levy limits for 2004. He noted that one item that was included in the final legislation was the authority for Cities to increase the levy by 60% of the amounts that were experienced in state-aid cuts for pay 2004. He referenced an AMM newsletter article describing the changes. He stated that according to the estimates by the State, the City of Cottage Grove would experience a cut to the 2003 LGA in the amount of $935,000, which is a major portion of the $965,000 previously certified, which leaves $35,000 in LGA for 2003. He explained that the reduction to the LGA for 2004 is increased to $965,000. He further explained that the way the formula for cuts worked out, the amounts that Cottage Grove would receive under the Market Value Homestead Credit program would not be reduced in either year. He reviewed the cuts per capita with Council. City Administrator Schroeder noted that earlier this year the City Council met a number of times to discuss ways to address the reduction to the City budgets adding that the aids cuts will begin with the current budget year—2003—and will continue into the 2004 budget year. He stated that the City has to re-balance the 2003 budget taking into account the cuts of $935,000 in 2003. He stated that the earlier discussions resulted in a list of items to be considered and a few items that were held off until they knew the outcome of the legislative session. He reviewed the items with Council stating that the intent of this workshop is to further discuss the impacts of the cuts and receive direction from Council on the steps taken to address the cuts and the approach for the 2004 budget year and how they want to come up with the $333,000. Regular Meeting – June 18, 2003 Cottage Grove City Council Page 22 City Administrator Schroeder stated that the expectation is that over time they would be able to maintain the City budget and delay significant purchases. He stated that all departments are currently reviewing opportunities that could be delayed. Finance Director Hedberg stated that two equipment items have been identified for delay: the aerial bucket truck for $55,000 and the park maintenance tractor for $75,000 will be postponed to 2005. Council Member Grossklaus noted that $579,000 could be levied back and asked what it would cost the residents. Finance Director Hedberg reviewed the levy totals with Council stating that the total levy is approximately $10 million so the increase would be approximately 5.8%. Council Member Kohls expressed concerns stating that Council did not know that the City would get hit like this. She stated that the City has been cutting back for years with the intent that the City would be able to pay cash for major purchases. She stated that they have already cut so much from the budget and commended Staff for stating that they did a wonderful job finding the money that was needed to cover the budget. She referenced the new ladder truck that is coming noting that it would cost roughly $500,000. She acknowledged that the intent was to pay cash for the truck noting that most Cities would have taken a loan and spread out the dollars over the lifetime of the vehicle. She suggested considering a loan noting that it would free up a half-million dollars. She asked Council to give this consideration. Council Member Wolcott expressed concerns with paying cash for the fire truck, stating that bonds are at their cheapest and suggested a 10 - 15 year bond. Council Member Kohls expressed concerns and asked how the taxpayers would be able to handle the possible increases. She stated that the City is growing and a tax increase would probably be necessary in order for the City to maintain the services they presently have. Mayor Shiely asked Finance Director Hedberg if he has concerns about the City debt. Finance Director Hedberg stated that the City debt level is quite high per capita and is very high for each year in comparison. He explained that it does concern Moodys but that they also state that it appears that the City is managing the debt well. He stated that he did not think that an equipment bond would affect their Moodys rating. He stated that the debt service in the first year would be $63,000 on a debt of $500,000. He noted an additional strategy could be to increase the levy to the maximum and use a portion to eliminate the debt. Finance Director Hedberg explained that by using ‘one-time’ money over a period of years to resolve the debt. He stated that Moodys would look down on that and it could affect their rating. He stated that one of Moodys cautions is that the budgets remain structurally balanced. He stated that they would be back at the table having similar discussions when they are ready to do their revenue projections for next year. Regular Meeting – June 18, 2003 Cottage Grove City Council Page 23 Council Member Kohls clarified her understanding and expressed concerns that the City is in bigger trouble than what was initially thought. She stated that the City continues to build yet they are being told that in the foreseeable future they would have additional cuts and not be able to add any additional services. City Administrator Schroeder suggested that Council actively consider the franchise fee. Council Member Kohls expressed frustration noting that whenever she brought up the issue of City debt she was told that everything was fine and now Staff has concerns with using $500,000 in debt for the fire truck to relieve the pressure. Finance Director Hedberg stated that the next time they meet with Ehlers they would ask how they recommend dealing with this issue. He reviewed several options with Council stating that a franchise fee would be a good consideration as it would be ongoing revenue for the City. Mayor Shiely asked Finance Director Hedberg if he knew of other Cities that are doing equipment certificates to cover their losses. Finance Director Hedberg explained that a number of the Cities who were utilizing equipment certificates are doing it to get around the levy limits or add more cushion. He stated that equipment certificates are not a bad idea as long as the debt is not used for operating costs. Council Member Kohls explained that her fear is that they are running themselves into a hole. She acknowledged that the budget has to be dealt with and expressed concerns that two to three years from now the City will be in bigger trouble. She asked how they would come up with the money to cover items that are postponed over the next two years. City Administrator Schroeder stated that they should make sure they plan for where they are headed. Finance Director Hedberg reviewed several options with Council noting that they have discussed increasing permits and license fees. He reviewed the EDA Fund levy reduction and referenced an idea discussed at an earlier Council work session that suggested moving the street sweeping costs to the storm water fund. Mayor Shiely stated that all they have done so far to address this crisis is raise fees. She expressed concerns about increasing the debt in order to resolve debt. City Administrator Schroeder stated that it appears they can solve their problems for 2003 noting that he is not sure what they are facing for 2004. He cautioned Council stating that they should be aware of all issues as they are going through this process. Mayor Shiely expressed concerns noting the increase in property values and the continued growth in the community. Council Member Wolcott stated that property values are going to start going back down. City Administrator Schroeder agreed noting that these concerns are being discussed. Regular Meeting – June 18, 2003 Cottage Grove City Council Page 24 Council Member Wolcott asked City Administrator Schroeder what his recommendation would be to resolve the budget. City Administrator Schroeder recommended franchise fees, to make a few minor cuts and use the fund balance if short. Mayor Shiely asked for further clarification of what the equipment certificate would do. Finance Director Hedberg suggested using the equipment certificate for large pieces of equipment that have longer lives. Council Member Kohls suggested going back through the budget process to determine what could be done with the $500,000. Council Member Wolcott suggested that Staff put together a plan for Council to review. WORKSHOP SESSION – CLOSED NONE ADJOURNMENT MOTION BY KOHLS, SECONDED BY GROSSKLAUS, TO ADJOURN THE MEETING AT 11:20 P.M. MOTION CARRIED 5-0. Respectfully submitted, Bonita Sullivan TimeSaver Off Site Secretarial, Inc.