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HomeMy WebLinkAbout2016-04-06 PACKET 07.B. MINUTES COTTAGE GROVE CITY COUNCIL COUNCIL CHAMBER 12800 RAVINE PARKWAY SOUTH MARCH 16, 2016 REGULAR MEETING – 7:00 P.M. (COUNCIL CHAMBER) CALL TO ORDER – Mayor The City Council of the City of Cottage Grove, Washington County, Minnesota, held a regular meeting on March 16, 2016, at Cottage Grove City Hall, 12800 Ravine Parkway South. Mayor Bailey called the meeting to order at 7:00 p.m. PLEDGE OF ALLEGIANCE The audience, staff, Mayor and City Council Members recited the Pledge of Allegiance. ROLL CALL – City Clerk The following were present: Mayor Myron Bailey, Council Member Steve Dennis, Council Member Justin Olsen, Council Member Jen Peterson, Council Member Thiede. Also present were: Charlene Stevens, City Administrator; Korine Land, City Attorney- LeVander, Gillen & Miller, PA; John Burbank, City Planner; Les Burshten, Public Works Director; Zac Dockter, Parks and Recreation Director; Joe Fischbach, HR Manager/City Clerk; Jennifer Levitt, Community Development Director/City Engineer; John McCool, City Planner; Robin Roland, Finance Director; Craig Woolery, Public Safety Director OPEN FORUM Mayor Bailey asked if anyone in the audience wished to address the Council on any item that was not on the agenda. As no one wished to address the Council, Mayor Bailey closed the Open Forum. Mayor Bailey presided over the meeting. 1. ADOPTION OF AGENDA CITY OF COTTAGE GROVE 12800 Ravine Parkway Cottage Grove, Minnesota 55016  www.cottage-grove.org 651-458-2800 Fax 651-458-2897 Equal Opportunity Employer  Cottage Grove City Council March 16, 2016 Page 2 Motion by Council Member Olsen, second by Council Member Peterson, to adopt the agenda as presented. Motion carried: 5-0. 2. PRESENTATIONS A. Swearing-In Ceremony for Police Sergeant Patrick Nickle City Administrator Stevens gave an overview of Sergeant Nickle’s background as a police officer with the Cottage Grove Police Department since 2003. He’s also served in the Marine Corps and the Army Reserve, but will be retiring from the military on April 1. He was then sworn in as Sergeant, and Public Safety Director Woolery reviewed the process for choosing from the candidates for the Police Sergeant position. He stated Sergeant Nickle’s leadership, talents, intelligence, and personality put him at the top. Sergeant Nickle’s son, Jacob, pinned his father’s new badge on his uniform. Sergeant Nickle was congratulated by the Mayor, the Council Members, Administrator Stevens, and Director Woolery. B. Alcohol Compliance Update Presentation by Captain Pete Koerner Captain Koerner stated that recently there had been five businesses that had . failed alcohol compliance checks, which was very unusual and disappointing The alcohol and tobacco compliance checks are a County-wide program; the goal is to keep alcohol and tobacco out of the hands of underage persons. There will now be a Sergeant in charge of the program, and Sergeant Nickle asked if he could take on that responsibility. There are five compliance Officers, who have attending special training. Two alcohol compliance checks and two tobacco compliance checks are conducted each year in Cottage Grove. An underage person assists with the checks and he or she is trained before they participate. Currently, if the underage person is able to purchase alcohol or tobacco, the Officer issues a citation to the clerk and/or server and the violation is reported to the City Clerk. There have been revisions made; the Police Department will be implementing a new pilot program, “Congratulate and Educate”, which uses positive reinforcement. If a business fails the first compliance check, rather than being issued a citation they are offered education, and police will work with management to prevent failures from recurring. The second compliance check, however, will result in traditional penalties. The goal of the Police Department is to work with the businesses and provide training and communication for their employees. Council Member Dennis thanked the Police Department for being proactive in working with the local businesses to achieve compliance. 3. APPROVAL OF MINUTES Cottage Grove City Council March 16, 2016 Page 3 A. March 2, 2016 Regular Meeting. Mayor Bailey and the Council Members approved the minutes as presented. 4. CONSENT CALENDAR The following items were pulled for discussion: Council Member Thiede wished to pull Items G and K, Council Member Dennis wished to pull Item Q, Council Member Olsen wished to pull Items J and R, and Mayor Bailey wished to pull Item P. Council Member Olsen spoke on Item R and requested that the Council appoint Mark Nelson as Chair of the Parks, Recreation, and Natural Resource Commission as he’s been an active, working member with the Commission for the last couple of years. Council Member Olsen also spoke on Item J, the 2015 General Fund balance designations. He stated as of December 31, 2015, General Fund operating revenues are projected to be 6.5% greater than the adopted budget, and overall operating expenditures are projected to be 2.3% less than the adopted budget. The City under-spent about $1,000,030, which is a huge credit to the Finance Department and other City Departments who are protecting taxpayer money and being careful with expenditures. Mayor Bailey spoke on Item P, the resignation of Jeff Carter from the Economic Development Authority. He stated Jeff had been on the EDA for approximately three years; Jeff does not live in Cottage Grove and had previously worked at a business in Cottage Grove so he tendered his resignation but will remain active with the Chamber. He thanked Jeff for his service and wished him a successful future. Council Member Dennis spoke on Item Q and asked the Council to appoint Eric Thiewes as a new member to the Economic Development Authority. He brings experience in the area of public housing, which will benefit the City of Cottage Grove. Council Member Thiede spoke on Item K, Accepting the Space Needs Study for Fire Station #2, Approving the Proposed Location, and Approving the Request For Proposals for Architectural Services. He had an issue with that because in the Request For Proposals we had actually listed a dollar amount per square foot; he wanted to remove the dollars per square foot from the Space Needs Study and the RFP. Council Member Thiede also wished to pull approving the proposal by Stantec for the Comprehensive Plan Update. Cottage Grove City Council March 16, 2016 Page 4 A. Accept and Place on File the Following Minutes: None submitted. B. Appoint Erik Witt to the Parks, Recreation, and Natural Resources Commission. C. Authorize staff to execute a service contract with Hoffman and McNamara for the planting of 193 boulevard trees for the amount of $68,224. D. Appoint Tyler Olson as Interim Golf Manager. E. Authorize acceptance of a donation of two preliminary breath test units from the Minnesota Department of Public Safety, Office of Traffic Safety, valued at $1,200. F. Accept a grant award in the amount of $7,471.50 from the Minnesota Department of Public Safety, Office of Traffic Safety, to assist in the outfitting of three squads. G. Appoint all the applicants to the Comprehensive Plan Update Steering Committee, appoint Ken Brittain as Chair, and approve the proposal by Stantec for the Comprehensive Plan Update. H. Adopt Resolution 2016-045 approving a conditional use permit for the proposed construction of a community solar garden on approximately 43 acres of land located at 9105 Lamar Avenue South. I. Adopt Resolution 2016-046 approving a conditional use permit for construction of a community solar garden on approximately 37.7 acres of land located south of 70th Street (CSAH 20) and east of Lamar Fields. J. Receive information about 2015 General Fund balance designations pursuant to the City’s Fund Balance (transfer) Policy. K. Accept the Space Needs Study for Fire Station #2, approve the proposed location at 8641 80th Street South, and approve the Request For Proposals for Architectural Services. L. Adopt Resolution 2016-047 awarding the quote for the 2016 City-wide Sweeping Project to Mike McPhillips, Inc. for $77.00 per hour. M. Adopt Resolution 2016-048 amending Resolution No. 2015-105 and approving the revised Grove Plaza 3rd Addition final plat. N. Authorize issuance of a single-occasion gambling permit to The Phoenix Residence to conduct a raffle at River Oaks Golf Course on June 13, 2016. O. Adopt Resolution 2016-049 supporting the grant application to the Minnesota Department of Natural Resources in the amount of $100,000 to be used toward playground improvements at Woodridge Park. P. Accept the resignation of Jeff Carter from the Economic Development Authority. Q. Appoint Eric Thiewes to fill the vacant position on the Economic Development Authority to a term ending December 31, 2018. R. Appoint Mark Nelson as Chair of the Parks, Recreation, and Natural Resources Commission. Motion by Council Member Thiede, second by Council Member Olsen, to approve the Consent Calendar with the exception of Item G, Approving the Proposal by Stantec for the Comprehensive Plan Update, and Item K, Approving Cottage Grove City Council March 16, 2016 Page 5 the Request For Proposals for Architectural Services for Fire Station #2. Motion carried: 5-0. Regarding Item K, Approving the Request For Proposals for Architectural Services, Council Member Thiede had a concern regarding the dollars per square foot, which was having RFPs sent out with the dollars per square foot; he’d rather the architectural firms come back with their proposals and state what the dollars per square foot would be and the total cost, as opposed to giving them a number. Mayor Bailey asked staff if square footage cost is usually put in the RFPs; Administrator Stevens stated they’ve been done both ways, with a dollar range and without a dollar range. She felt either way was appropriate. Motion by Council Member Thiede to approve the Space Needs Study, Request For Proposals for Architectural Services for Fire Station #2, 8641 80th Street, after the dollar amounts have been removed from both of those documents; second by Council Member Dennis. Motion carried: 5-0. Regarding Item G, approving the proposal by Stantec ($142,000) for the Comprehensive Plan Update, Council Member Thiede stated that his issue with that was it was $100,000 more than the last time it was proposed. He felt it should be discussed with Council and staff before that large of an amount was approved to get the Comprehensive Plan done. Mayor Bailey stated Phil Carlson of Stantec was present and asked him if he wished to address the Council. Phil Carlson, a planner with Stantec, 2335 Highway 36, Roseville, Minnesota, stated they put together the proposal based on what they understood the City needed for the overall Comprehensive Plan. They had provided similar estimates to City staff last fall about what it would cost for information and elements of the plan ($42,000). It was their understanding that City staff didn’t have the time to lead the process. It was important to have a community engagement process with a steering committee for the business community and for the community at large to have a larger presence and involvement, which was the biggest reason for having the increase in the budget. Mr. Carlson asked what the City wanted to accomplish with the Plan update; he stated their understanding was they had a goal to position themselves for growth. He assumed they wanted to provide good quality of life for the people of Cottage Grove, while ensuring they were fulfilling the requirements of the Metropolitan Council. Their many professionals at Stantec team with a sub-consultant, Tom Layton of Tangible Consulting, who will provide market analysis. They found that market research analysis with Comprehensive Plans was critical. He said Cottage Grove was being charged the lowest of the rate schedules. They want to continue their relationship with Cottage Grove; they bring the experience necessary for a good plan and to launch the City for the next 10-to-20 years. Mayor Bailey asked Engineer Levitt if they could table this issue and have a workshop before the next Council meeting to go over the monetary expenses Cottage Grove City Council March 16, 2016 Page 6 and if they would still be on task. Director Levitt stated this could be tabled to a workshop session to analyze it in more detail and get more information. That could be put on the April 6 Council agenda for action. Mayor Bailey asked when the Comprehensive Plan had to be sent to the Metropolitan Council; Director Levitt advised that that was due at the end of 2017. Council Member Dennis asked if they had received bids from consultants who provide this service; Engineer Levitt replied they had not sought RFPs for this service based upon Stantec providing all of the infrastructure needs pertaining to sanitary sewers, storm and water, the transportation system, and she felt they could most competitively bid it at the most cost-effective rate. They’re close to the budget amount allocated during the budget process. Council Member Dennis asked about legal requirements if something is over a certain dollar amount and asked if that applied to this topic; Attorney Land stated this was outside of the municipal contracting law because it’s a professional service contract. The municipal contracting law only applies to specific products or tangible things the City buys, not a service such as this one. Council Member Olsen stated Stantec, formerly Bonestroo, had really mapped out the plans and specifications for the City of Cottage Grove from the time it was the Village of Cottage Grove so they’ve had a longstanding, strong partnership with them. Motion by Council Member Olsen to accept the bid, as is, no second by any Council Member. Motion by Council Member Thiede to table this item and have a workshop before the next Council meeting and bring it back for approval on April 6, second by Council Member Peterson. Council Member Olsen asked what other questions there were; Council Member Thiede stated he didn’t understand why they needed everything in the current proposal and thought they should discuss those items. Motion carried: 4-1 (Nay by Council Member Olsen). 5. RESPONSE TO PREVIOUSLY RAISED OPEN FORUM ISSUES – None. 6. PUBLIC HEARINGS – None. 7. BID AWARDS A. Consider adopting a resolution awarding the bid for the CP Rail Water Main Improvements Project to Minger Construction Company, Inc. in the amount of $150,737.50. City Engineer Levitt stated they were excited to bring forth the first bid award for 2016; the engineer’s estimate for the project was $200,000 so the recommendation is to award the bid to Minger Construction. Cottage Grove City Council March 16, 2016 Page 7 Motion to adopt Resolution 2016-050 awarding the bid for the CP Rail Water Main Improvements Project to Minger Construction Company, Inc. in the amount of $150,737.50 by Council Member Thiede, second by Council Member Dennis. Motion carried: 5-0. B. Consider adopting a resolution awarding the bid for the 70th Street South (CSAH 22) and Jamaica Avenue to Hardrives, Inc. in the amount of $3,251,892.52. Engineer Levitt stated they were working with Washington County on this project and were excited that it’s now going to be in the construction phase. The engineer’s estimate was just over $4,000,000 and the total construction cost is estimated at just over $3,200,000. The City of Cottage Grove’s expense is just over $1,700,000 of that portion of the construction cost. There was an add alternate to the bid for the landscape features related to the monuments, decorative lighting, and additional landscaping; the alternate bid came in much higher than anticipated so staff was not recommending award of the add alternate for the landscaping, monument sign, etc. Council Member Thiede and Mayor Bailey questioned Engineer Levitt regarding if the history with Hardrives had been good and also about the landscaping. Engineer Levitt stated that Hardrives, Inc. is a responsible contractor for this project. They will be held accountable to very strict specifications and a schedule and will need to perform at the standards outlined. Engineer Levitt stated that the landscaping will still exist in the center of the roundabout, as proposed, but they are not recommending the award of the additional landscaping and irrigation around the monument. Motion by Council Member Dennis to adopt Resolution 2016-051 awarding the bid for the 70th Street South (CSAH 22) and Jamaica Avenue to Hardrives, Inc. in the amount of $3,251,892.52, second by Council Member Peterson. Motion carried: 5-0. Council Member Olsen noted the bid was written by Dave Sanocki of Stantec and wondered what they were paying Stantec for consulting on this project. Engineer Levitt stated she could provide detailed analysis for that expenditure, but she did not have it with her tonight. Council Member Olsen asked if we took bids to get these services. Engineer Levitt stated Washington County and Cottage Grove both reviewed what they had as a pool of engineering consultants, and Washington County and Cottage Grove both felt that Stantec was the best engineer to serve the needs for this project. 8. UNFINISHED AND NEW BUSINESS Cottage Grove City Council March 16, 2016 Page 8 A. Consider adopting a resolution authorizing write-offs of Cottage Grove EMS accounts receivable in the amount of $2,454,561. Finance Director Roland stated the City is required to accept assignment of Medicare and Medicaid payments. Since 2002, whatever Medicare or Medicaid deems is an appropriate payment for an ambulance bill is what they pay to the City; the balance of the bill then has to be written off under Federal Statute. This amount is consistent with what the City has written off for the last five years, and they expect they’ll see something very similar in 2016. Despite those write-offs, almost $80,000 was added to the cash balance in the ambulance fund. Mayor Bailey stated that Cottage Grove is actually required to provide ambulance service to the surrounding communities of St. Paul Park, Newport, and Grey Cloud Island. He stated that Grey Cloud Island has always paid 100% of their ambulance bills whereas the other two cities have not. Mayor Bailey also stated Cottage Grove also has shared services with Woodbury, which might bring increased revenue, but that discussion will take place when they work on the budget. Motion by Council Member Thiede to adopting Resolution 2016-052 authorizing write-offs of Cottage Grove EMS accounts receivable in the amount of $2,454,561, second by Council Member Peterson. Motion carried: 5-0. B. Consider passing an ordinance to rezone 160.12 acres of land located west of Hadley Avenue, south of 90th Street, and north of 95th Street from AG-1, Agricultural Preservation, to R-3, Single Family Residential, with a Planned Development Overlay (PDO); and consider adopting a resolution approving the preliminary plat for Summers Landing, which will consist of 383 residential lots for single-family homes and 24 outlots. City Planner Burbank stated this was a welcome residential component to community development growth. He stated this will be a six-phase project in the area formerly known as the Swanlund Berry Farm. The project is planned to take six years, but given market conditions, that could extend to ten years. Phase 1 links to Hadley Avenue, as well as 95th Street; there will be 55 lots in that project, and they plan to begin grading in the next couple of weeks and hopefully have a model up in September, 2016. They are talking to several different builders. There will be an open space system, as detailed, where there are great views of the river valley. Major collector streets are Hadley Avenue and 95th Street; there will be some berms, landscaping, and fencing along Hadley Avenue and 95th Street; the developer is proposing consistent fencing. The Developer’s Agreement will be coming before the Council on Cottage Grove City Council March 16, 2016 Page 9 April 6. They are recommending approval of the zoning amendment, as well as the preliminary plat. The Applicant was present to answer questions. Council Member Olsen asked several questions, including the proposed road width for the subdivision and how that compared to other neighborhoods on that side of the highway, if on-street parking would be allowed, and if Public Safety had been consulted regarding the road widths to ensure Public Safety vehicles could get through. Planner Burbank stated Mississippi Dunes Boulevard would be a 36-foot wide roadway, and the other roadways are 28 feet, and indicated because it’s a public roadway it would have on-street parking. Planner Burbank stated that the Public Safety Department, as well as the Commission, had reviewed the application and that concern was not raised. Mayor Bailey invited the Applicant to speak; Gary Wollschlager of Summergate Development, 17305 Cedar Avenue South, Lakeville, Minnesota addressed the Council. He stated they were looking forward to working with the City of Cottage Grove and wanted to make it a successful project. Motion by Council Member Thiede to pass Ordinance 959 to rezone 160.12 acres of land located west of Hadley Avenue, south of 90th Street and north of 95th Street, from AG-1 to R-3, with a Planned Development Overlay and adopt Resolution 2016-053 approving the preliminary plat for Summers Landing, which will consist of 383 residential lots for single-family homes and 24 outlots, second by Council Member Dennis. Further discussion by the Mayor and Council Members, who asked Director Burshten, Director Woolery, and Fire Chief Redenius to comment on the road width and if they felt comfortable with it relative to their ability to provide services, emergency or otherwise, and if there were concerns about the new fire truck’s additional width, or if it would be possible to restrict parking to one side of the street. Director Woolery stated the road-width discussion had occurred years ago when the standard was set and they voiced that concern, but that’s the City’s standard. Director Burshten stated they had reviewed the plan with engineering and they’re going to go with a different style of curb, so it would go from a B6 curb to a surmountable curb. Director Burshten stated he felt it was a compromise for the 28-foot road and felt comfortable with it. Director Woolery stated regarding the fire truck, it’s mainly a problem with turning radius, e.g., in a cul-de-sac, and that kind of length would be an issue. Director Woolery deferred to Fire Chief Redenius to respond. Chief Redenius stated he believed the D.O.T. set forth the standard maximum width you can have on a roadway, with which Public Works vehicles also had to abide, but the truck width itself is what they would follow. He stated, as Director Woolery had, that the width of the truck wouldn’t be the issue, it would be the Cottage Grove City Council March 16, 2016 Page 10 turning. Director Woolery stated they could restrict parking to one side of the street, but he felt there might be expectations from residents who moved into a neighborhood that they would be able to park on both sides of the street. Council Member Olsen stated he remained very concerned about the road widths, as he thinks they’re too narrow. He stated if the Public Safety Director and Public Works Director were comfortable with it, he would be comfortable with it as well. Mayor Bailey stated he had previously ridden with a former Cottage Grove Fire Chief and they had gone to Woodbury, whose streets are 28 feet, and they had maneuvered fire trucks and plows to make sure that everything was good on the narrower streets. Upon vote being taken, motion carried: 5-0. C. Consider approving the 2016 Strategic Plan. Administrator Stevens stated that she, the City Council Members, all Department Directors, the HR Manager, and the Communications Manager had spent a weekend in January developing a five-year Strategic Plan for the City. The value of Strategic Planning is to set a course and be able to follow it. The overall mission of Cottage Grove is to provide excellence in the delivery of public services to community residents, businesses, and owners of property. Three areas of focus are the business environment, the organizational culture, and the quality of life in the City. Their focus was on positioning the City for growth, reforming the organizational culture, making Cottage Grove a recreation destination, and engaging the community in forming the vision. Administrator Stevens stated the next step was for the Council to adopt the 2016 Strategic Plan, along with its objectives and the work plan. There will be quarterly updates as well as a six-month progress update (as a workshop with the Council). Council Member Thiede stated he liked that they had created something that they were going to follow, and it would also have an objective measurement plan. Motion by Council Member Peterson to approve the 2016 Strategic Plan, second by Council Member Thiede. Motion passed: 5-0. D. Consider adopting a resolution approving an amendment to Carbone’s conditional use permit for expansion of their current restaurant with liquor to a total of 7,635 square feet to add a full bar, and a variance to minimum parking requirements at Almar Village. Engineer Levitt stated the Applicant had requested that they provide for a variance for the front-yard setback related to additional parking stalls adjacent to CSAH 19. They have committed to building those stalls if it becomes Cottage Grove City Council March 16, 2016 Page 11 necessary; unfortunately, if Council took action tonight, they would not be able to approve those 19 parking stalls. She proposed that this be continued to April 6 for a public hearing, and then action could be taken on that additional variance for the front-yard setback for the additional 19 stalls. Because of the necessity for the variance for that front-yard setback, they asked that it be continued to April 6. Council Member Dennis stated because he is a business owner and had a financial interest in the site they were going to vote on, he would need to recuse himself from the process; he then stepped away for any discussion. Mayor Bailey thanked the Applicant for working with the City staff to alleviate any problems with the parking. Council Member Thiede made a motion to continue adopting the resolution to date certain April 6 Council Meeting; second by Council Member Peterson. Motion carried: 4-0 (Council Member Dennis not present so did not vote). 9. RESPONSE TO PREVIOUSLY RAISED COUNCIL COMMENTS AND REQUESTS – None. 10. COUNCIL COMMENTS AND REQUESTS Council Member Dennis stated some residents had brought an issue to his attention, so he brought it to the attention of Captain Koerner today. It involved some school bus activity on Jorgensen Lane South, between Jordon and Indian Boulevard. A number of school buses had started to cut down that road instead of staying there, waiting to pull out onto County Road 19. The residents were concerned that the buses were traveling at a rather high rate of speed, so he notified the Public Safety Department, who will take whatever steps they feel necessary to deal with that. Council Member Peterson stated the Lions’ Easter Breakfast if March 20, at the VFW Red Barn. It is open to the public, and there’s no need to purchase tickets in advance. Council Member Peterson stated the next Beyond the Yellow Ribbon Network’s Burger Bash fundraiser will take place on Thursday, March 24, at the VFW Red Barn. The menu and the pricing will be announced at a later time. Council Member Peterson stated on Saturday, April 23, the Stone Soup “Soup-er Bowl” will take place at the Park Grove Bowl; that’s a fundraiser for the Stone Soup Thrift Shop in St. Paul Park. It’s open to the public; visit www.stonesoupthriftshop.org for more details about the event and sponsorship opportunities. Cottage Grove City Council March 16, 2016 Page 12 Mayor Bailey stated there would be only two more Fish Fries on Friday, March 19, and on Friday, March 26, at the River Oaks Golf Course. Mayor Bailey stated that Saturday, March 19, is the indoor Easter Egg Hunt at the Cottage Grove Ice Arena. There is a $6 cost. He encouraged everyone to attend. Mayor Bailey stated that on April 16, the Chamber of Commerce Spring Business Showcase will take place. There will be many restaurants there, serving food, the City of Cottage Grove will be represented, he will be there, and he looks forward to seeing everybody there. Mayor Bailey stated that Brenda (Peper) Malinowski had been employed by the City of Cottage Grove for 17 years in the Finance Department. However, she’s accepted a new opportunity in Hudson, Wisconsin, and will be leaving her employment with the City. She will be missed, and he wished her the best in her new career opportunity. 11. PAY BILLS Motion by Council Member Thiede, second by Council Member Dennis, to approve payment of check numbers 195297 to 195464 in the amount of $366,225.28 and EFT Payment of $36,033.15. Motion carried: 5-0. Council Member Olsen stated that he noticed there was an expense of $2,991.51 for Sam’s Club Direct for food items and it said it was for Pro Miscellaneous Resale. He asked if that expense was for the Pro Shop at the golf course. Director Roland stated she wasn’t sure but would get that information and respond to Council. Council Member Olsen stated he brought it up because they had discussed that those purchases should be made locally, if at all possible, and it’s reasonable that maybe that wasn’t possible. Director Roland stated that they’d made arrangements with other vendors, but there were times when they’ve not been able to deliver, so they’ve still needed to use that as a backup. She advised she would investigate. 12. WORKSHOP SESSION – OPEN TO PUBLIC (Not Televised, in Conference Room) A. 2016 Capital Projects Review Director Roland stated there were two different scenarios with the capital projects; the difference between those was the cost of the Fire Station, one is $9,000,000 and the other is $7,000,000. She presented the financial impact of projects that will be done or are committed to be done in 2016. Funding sources Cottage Grove City Council March 16, 2016 Page 13 are also listed. There were $14,700,000 worth of projects, and $3,900,000 of that total will be funded by MSA Funds. Other government funds include money the City would receive from Washington County, from the School District, and from other governmental agencies (e.g., the Watershed District). The bonding number is what the City would anticipate issuing in GEO improvement debt. There are also existing funds that can be used to support these projects. If the City uses a significant quantity of our MSA Funds to pay for these projects, they will also need to bond for a significant portion of these projects. The consequences of bonding for the Fire Station project will significantly impact what the City is required to levy for. Although there are sources of funding the City can fall back on, they are required to make the debt service payments. In choosing to do these projects, there’s an amount of money that they’re going to have to find a way to cover it when it comes to the levies in the coming years. Council Member Olsen spoke about available cash and fund balances. He stated it looked they were budgeting for the use of MSA dollars as cash to help buy down some of the debt, but were not factoring in any other potential cash resources that we have that could be used. He thought that dialogue should occur when the budget talks occur. Director Roland stated that funding is available, but they wanted to look at the worst-case scenario. Administrator Stevens stated they might have to look at things differently for the 2017 budget, but they wanted to get some feedback now. In 2017, the CSAH 19 and East Point Douglas Road project, which was approximately $600,000. They had not anticipated that to be as expensive as it’s turning out to be. So, that will be addressed by Engineer Levitt. Director Roland stated they’re in a bit of flux regarding the 65th Street project. Sources of funding from either the School District or Washington County will impact what they’d have to take out of MSA. Until those numbers are firmed up with Washington County, that number is in flux regarding what they’d need to take from MSA. Mayor Bailey stated he and Engineer Levitt had spoken about this earlier, and they will meet with Washington County the second-or-third week of April regarding this project and the feasibility report will be complete at that time so they could review the expenditures for the improvements. Engineer Levitt spoke about CSAH 19 and East Point Douglas Road; it was initially going to be a four-legged intersection and now it’s going to be a six- legged intersection so the cost estimate will greatly rise, but the City will gain greater benefit from the six-legged intersection with the growth in the Cottage View area. Council Member Thiede asked if initially it was going to be two roundabouts and now it’s six; Engineer Levitt confirmed that. Cottage Grove City Council March 16, 2016 Page 14 Engineer Levitt stated the Hadley Avenue and 95th Street project is actually in both 2016 and 2017. They’re proposing to bid that whole project in 2016 but essentially delay the construction of Hadley Avenue from 95th Street to 100th; the roundabout and everything up to 90th Street will be completed in 2016 with the School District. Director Roland stated that would also give an opportunity for a second year of MSA. There is a bonding amount of $1,774,000, which is the developer’s portion of the Summer Hill project; the developer will be assessed over a 10-year period, but the City would need to bond for it up front. Council Member Thiede asked what the cost comparison would be four a four- way stop as opposed to roundabouts; Engineer Levitt stated they’d have to get that information, but that’s why they wanted this workshop, to get questions like that from the Council so those could be responded to at the public hearing. Mayor Bailey asked Engineer Levitt if there was money set aside from the Walmart development that would affect the CSAH 19 and East Point Douglas Road project; Director Roland that was in the “Other Funds,” $250,000. Walmart stated that they realized that they would be ready to come forward with that in 2017. Mayor Bailey asked about the $600,000 and if that was going to be picked up by other agencies; Director Roland stated they assumed the Walmart money was the money that the City would put forward into that project. Washington County would have the other amount for the CSAH 19 and East Point Douglas Road project. Mayor Bailey asked if it’s a six-leg roundabout, there will be an additional bump that the City would have to put into the project; Director Roland and Engineer confirmed that. Engineer Levitt stated they’d try to seek State funds through cooperative agreement funds that might be competitively available, but that would mean they’d still have to front the money and get reimbursed in the future. Mayor Bailey asked what was in the Building Replacement Fund; Director Roland stated that fund really doesn’t have any money in it because it’s currently carrying the balance for City Hall as that loan’s being paid back. She stated at any one point during the year it might have $50,000 to $100,000 cash, above and beyond. Director Roland stated they were looking at alternatives to restructuring debt for facilities, the internal debt the City has, as well as perhaps merging it or extending the existing levy. Consolidating the debt with the Fire Station when the bonds are issued is a possibility and utilizing the existing levy. Director Roland stated there’s a lot on the table and there’s a lot of money that the City has to be sensitive to. Council Member Olsen stated she was finding solutions and he thanked her for that. Mayor Bailey stated they’re proceeding forward with the Fire Station plan, and he felt Administrator Stevens could now set a plan in place for getting the information out to the community about what that means. Administrator Stevens Cottage Grove City Council March 16, 2016 Page 15 stated Communications Coordinator Madsen had already been working with Chief Redenius on that communication, the why and the need. When it’s finished, there will be two remnant parcels available (Fire Station 1 and Fire Station 3) so the question is what to do with those. Chief Redenius stated they had been approached by the State to use Fire Station 3 as a housing location for some of their equipment, so there’s a possibility of $10,000 per year in rental income for storage inside that facility. Mayor Bailey confirmed they’re looking at a redevelopment opportunity with Fire Station #1. Council Member Olsen felt the information on the new Fire Station should be brought to all of the Commissions. Council Member Thiede asked about plans for the existing Fire Station #2; one plan said it would remain standing, the other said it would be demolished. Administrator Stevens stated that related to the Hero Center planning. An RFP had been issued for the design and architectural services for that and those are being reviewed. They were trying to identify the best location for the Hero Center, either Fire Station #2 or potentially on the City Hall campus. Mayor Bailey stated he thought it was important for the community to be going in the right direction and as a place for growth so these were things they had to do to make that happen. 13. WORKSHOP SESSION – CLOSED TO PUBLIC – None. ADJOURNMENT Motion by Council Member Peterson, second by Council Member Thiede, to adjourn the regular meeting at 8:33 p.m. Motion carried: 5-0. Minutes prepared by Judy Graf and reviewed by Joe Fischbach, HR Manager/City Clerk.