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HomeMy WebLinkAboutMinutes i� ��tJV� �ri°t � y � ............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... ���� �ri e ar�d PC�� t MINUTES COTTAGE GROVE CITY COUNCIL September 7, 2016 COUNCIL CHAMBER 12800 RAVINE PARKWAY SOUTH SPECIAL MEETING - 6:00 P.M. 1. CALL TO ORDER 2. ROLL CALL 3. AGENDA ITEM A. Budget Open House 4. ADJOURNMENT REGULAR MEETING - 7:00 P.M. 1. CALL TO ORDER The City Council of the City of Cottage Grove, Washington County, Minnesota, held a regular meeting on September 7, 2016 at Cottage Grove City Hall, 12800 Ravine Parkway. Mayor Bailey called the meeting to order at 7:00 p.m. 2. PLEDGE OF ALLEGIANCE The audience, staff, and Mayor and City Council Members recited the Pledge of Allegiance. 3. ROLL CALL The following were present: Mayor Myron Bailey, Council Member Steve Dennis, Council Member Justin Olsen, Council Member Jen Peterson, Council Member Dave Thiede. Also present were: Charlene Stevens, City Administrator; Korine Land, City Attorney- LeVander, Gillen & Miller, PA; Ryan Burfeind, Project Engineer; Les Burshten, Public Works Director; Zac Dockter, Parks and Recreation Director; Joe Fischbach, HR Manager/City Clerk; Jennifer Levitt, Community Development Director/City Engineer; Robin Roland, Finance Director; Craig Woolery, Public Safety Director; Gary Orloff, Streets Working Foreman. 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 City Council Meeting Minutes September 7, 2016 Page 2 4. 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. 5. ADOPTION OF AGENDA Motion by Council Member Olsen, second by Council Member Dennis, to adopt the agenda. Motion carried: 5-0. 6. PRESENTATIONS — None. 7. CONSENT AGENDA A. Approve the August 10, 2016 City Council Regular Meeting Minutes. B. Authorize entrance into a Government Records Depository Agreement with the Washington County Historical Society and Minnesota Historical Society for the transfer of historical records. C. Receive and place on file the approved minutes for the Arts Commission Meeting on July 5, 2016. D. Authorize City Administrator Stevens to send a letter in support of Twin Cities Habitat for Humanity's application to the Washington County Housing and Redevelopment Authority for Community Development Block Grant Funds. E. Adopt Resolution 2016-133 accepting the donation of 700 perennial plants. F. Pass Ordinance 968 amending Chapter 5-3-6-C-1 of the Cottage Grove City Code relating to hunting. G. Approve the 2016 — 2017 maps designating areas to discharge archery and firearms within the City. H. Authorize issuance of a single-occasion gambling permit and waive the permit for the South Washington County Schools Community Education District Program Center 50+ Fall Festival event on October 21, 2016. I. Adopt Resolution 2016-134 accepting 2nd quarter donations. J. Accept the minutes from the Planning Commission meeting on July 25, 2016. K. Approve the Business Retention and Expansion Program timeline and approve the University of Minnesota Program agreement. L. Accept and issue the proposed Dog Park and Compost Site Lease Agreement and the Option Agreement and Right of Entry with WAG Farms, Inc. with the following conditions: a) Review and acceptance by WAG Farms, Inc. b) Allow the City Attorney to make minor changes to all agreements when necessary. City Council Meeting Minutes September 7, 2016 Page 3 M. Accept the Certified Local Government Grant in the amount of$221 from the Minnesota Historical Society. N. Accept quarterly update on the 2016 Strategic Plan. O. Adopt Resolution 2016-135 approving the Final Payment to Minger Construction in the amount of$38,420.11 for the CP Rail Watermain Improvements. P. Adopt Resolution 2016-136 approving the Final Payment in the amount of $444,933.90 for the Business Park Grading Project. Q. Appoint Suzanne Elliot, Sandi Scott, Erik Holtan, Dan Sullivan, Joe Kovarik, Bart Fischer, Michael Laverdure, Eric Radel, Tod Oswald, Jess Davison, Melissa Jungbauer, Nicole Toni, Jessica Vadnais, Lisa Maxwell, Lisa Studiner, Jennifer Nedry, and Regina Boston to the Community Engagement Steering Committee. R. Adopt Resolution 2016-137 declaring the costs to be assessed for pavement management and Adopt Resolution 2016-138 calling for a public hearing to be held on October 5, 2016. S. Adopt Resolution 2016-139 authorizing City Staff and the City Attorney to review and revise the appropriate documents to effectuate the understanding with CP Rail to convey fee title to Outlot C, which is proposed as a future water tower, and for CP Rail to execute a public dedication for Outlot E, which is proposed to be used for storm water management, and execute the documents accordingly. T. Authorize issuance of a massage therapist license to Michelle Hartwick. Council Member Dennis wished to pull Item B, Council Member Olsen wished to pull Items E and I, and Council Member Thiede wished to pull Items N and Q for further discussion and/or comment. Council Member Dennis stated various items from the City of Cottage Grove were going to be transferred to the Washington County Historical Society and/or the State of Minnesota Historical Society. He felt history was very important; there had been a display of some various artifacts in the former City Hall, but none of those artifacts are currently on display in the new City Hall. He felt it would be nice to have that display again. He also felt some of the important papers should be electronically documented. He requested input from other Council Members. Administrator Stevens felt the display could certainly be looked into; electronically documenting some of the paper records might be possible, although some might not be in a condition where that could be done. She stated the City would keep records of what documents or articles had been transferred so if someone requested that information in the future, they could be directed to the appropriate Historical Society. She felt the Historical Societies would be better able to preserve the records than the City and would provide better accessibility. Council Member Dennis stated there was a City Record spanning several years in the 1800s that he felt would be of interest to the citizens and should be on display. He wondered if the City's Historic Preservation Commission, as well as John Burbank, City Council Meeting Minutes September 7, 2016 Page 4 could look at some of those documents to see if they could perhaps be protected and kept at City Hall. Administrator Stevens stated that could certainly be done. Council Member Olsen spoke about the donation received from Gardenworld in the City of Cottage Grove. They donated 700 perennial plants to the City, which were used throughout the City parks for beautification purposes. He acknowledged their generous donation and thanked them. He reminded the public that Gardenworld is a new business in the City and is located next to LeafLine Labs. Council Member Olsen stated there were 2nd Quarter ponations, April 1 to June 30, to the City of Cottage Grove. He stated the City receives donations from a variety of sources; by law, the City Council has to acknowledge those donations, so each quarter they thank the various people and/or businesses who made the donations, as follows: LSP of Cottage Grove donated $1,000 to Safety Camp; Dunn Orthodontics donated $200 to Safety Camp; Jack Germo, a State Farm Insurance agent, donated $50 to Safety Camp; Renewal by Andersen donated $250; the Newport Lions Club donated $610 to the Inclusive Playground; the Chamber Expo and various members from the Volunteer Banquet donated approximately $280; Advanced Sportswear donated $50 to Safety Camp; Cottage Grove Lions Club donated $350; Werner Electric donated $250; Custom One Homes donated $100; JD's Bobcat Service donated $50; Night to Unite parties donated $40 for the Inclusive Playground; A-Doorable Garage Door donated $100 to Safety Camp; Park Grove Pet Hospital donated $300 for the Inclusive Playground; Dennis Brothers Liquor donated $250 to the Inclusive Playground and $250 to Safety Camp. He thanked everyone for their donations to the City of Cottage Grove. Council Member Thiede spoke about the Strategic Plan Quarter 2 Update. He commented that they had changed the process and put some more tracking structure to it: Positioning for Growth; Performing Organizational Culture; Making Cottage Grove a Recreation Destination; Engaging the Community and forming the vision. He stated that segues into the Community Engagement Steering Committee, which is one piece of the Strategic Plan. There are 17 people who have signed up, as part of forming that vision. This is a great way for citizens to get involved, and they want people to get involved. Administrator Stevens added citizens can also get engaged through town forums, community chalkboards, electronic chalkboards, and social media posts. Motion by Council Member Olsen to approve the Consent Agenda, second by Council Member Peterson. Motion carried: 5-0. 8. APPROVE DISBURSEMENTS A. Approve payment of check numbers 197472 to 197848 in the amount of $3,139,461.60 and EFT Payment of$2,748,052.78. Motion to approve disbursements by Council Member Thiede, second by Council Member Peterson. Motion carried: 5-0. City Council Meeting Minutes September 7, 2016 Page 5 9. PUBLIC HEARINGS A. 2017 Pavement Management Project— Public Hearing, Order Project, and Authorize Preparation of Plans & Specifications 1) Hold the public hearing. 2) Adopt Resolution 2016-140 ordering the 2017 Pavement Management Project and authorizing the preparation of plans and specifications for Districts 81 and F3. Project Engineer Ryan Burfeind reviewed the different types of pavement rehab methods: sealcoat and maintenance, pavement overlay, and full pavement replacement or reconstruction, some of which involve assessments. They will speak about full pavement replacement tonight. Since 1994, 83 miles of street reconstruction have taken place with over 7,000 assessments. The reason pavement management is done is because it keeps roads in good structural condition, maintains the infrastructure, maintains property values, and enhances the community. There are two residential areas in this year's project, the Rolling Hills Addition and the Jamaica Ridge Addition. Rolling Hills has two different types of pavement rehab or street reconstruction; one is a full pavement and full curb replacement and the other is a full pavement replacement and spot curb replacement. The Jamaica Ridge Addition will have full pavement replacement and spot curb replacement recommended. Engineer Burfeind stated on a street reconstruction project they start with an extensive amount of assessment and testing of the pavement. The pavement condition index (PCI) rating is done, with samples taken from throughout the project area, as well as spot excavation. The Rolling Hills Addition PCI varies from 35 to 45 and the Jamaica Ridge PCI is 40 to 45. Core samples were taken, both to determine the existing thickness of the pavement and to also look at the structural condition. He showed photographs of the core samples taken, where there was pavement stripping and deterioration occurring where oil and aggregate separated. It's currently in very poor structural condition. Test pits were done, which found that the sub-grade was in good condition in both of the areas. Visual and spot excavation of utilities, including certain water main valves, was performed. Engineer Burfeind reviewed the findings of the Rolling Hills Addition streets. Estimated assessments are 45% of the project cost to the homes in the area; the other 55% is the general levy on utility funds. There are 53 properties involved; the estimated assessment per unit, based on the current engineer's estimate of the project, is $4,990 per home in that project area. With tax assessments payable over 15 years, that's an average annual payment of$430, or approximately $36 per month. Special Benefit Appraisals are still pending for this project. Engineer Burfeind reviewed the Rolling Hills Addition spot curb replacement area and the reasons why it's necessary. There are 84 assessable units in that project area; the estimated assessment is currently $3,200 per unit, or an average of approximately $280 City Council Meeting Minutes September 7, 2016 Page 6 per year, or approximately $23 per month. Once again, Special Benefit Appraisals supported $5,000 for this scope of work. He reviewed the current street conditions with photographs of the Jamaica Ridge Addition. Full pavement replacement, spot curb replacement, spot utility repairs, and spot sidewalk repair are necessary. There are 91 billable units in this area; the estimated assessment per unit is $3,510, which is an annual payment of$308 or monthly payment of$25. The Special Benefit Appraisal supported $5,000 for this scope of work. Engineer Burfeind reviewed the spot utility repairs needed to sanitary sewers, water main, hydrants, storm sewers, and manholes. The funding breakdown was reviewed: Total project costs are $1,950,000. Sanitary sewer utility is approximately $50,000, water utility approximately $47,000, storm water utility $80,000, streetlight enterprise fund is $23,000, and general levy is $895,000. The estimated assessments at this time total $852,000. Engineer Burfeind reviewed the assessment terms if the project were to be ordered and stated there will be an assessment hearing after the project is completed. Assessments for the project may be paid within 30 days of adoption. Assessments are payable over 15 years; interest rate is 1.5% above the bond rate. Partial payments are allowed in the first 30 days, with a minimum of$500. If the project is ordered tonight, there will be a pending assessment listed on the involved properties. Deferrals are available for disability, military, and those 65 years of age or older; proof is needed for those deferrals and interest still accrues during the deferral period. If the project is ordered tonight, construction will start in the spring of 2017 and the construction will be completed in the fall of 2017, with an assessment hearing in October, 2017. Per Minnesota Statute 429, the Resolution needs to be adopted by a 4/5 vote in order for the project to be ordered. Council Member Olsen asked City Attorney Land if she could give a brief explanation of Minnesota Statute 429, how it works, and the steps the City takes in order to comply. Attorney Land stated every step of Minnesota Statute 429 must be followed in order for the residents to be assessed the costs. It begins with the feasibility report, which tells you the costs, the proposed project, the scope, and potential assessments. Based on that report, you would then order the project. It requires a super majority vote of the Council, which is 4/5. If you do not have a 4/5 vote, the project cannot be ordered. Once the project is order, that triggers the public hearing notices that go to the residents and they will be notified of the project for the potential assessment hearing. The City Council has typically chosen to not assess projects until they're completed. Once the project is complete, the costs would be assessed against those property owners or you'd hold a public hearing to give the people an opportunity to be heard, to file an appeal at the assessment hearing if they disagree with the assessment and with the City Council Meeting Minutes September 7, 2016 Page 7 special benefit that they believe their property did or did not receive. As long as the appeal is filed at that hearing, that would protect their ability to appeal. Council Member Olsen commented that the estimates are simply that; they are engineers' estimates based on historical data and the current market condition. They wait to do the assessments until they actually have the complete, accurate costs, as the engineers' estimates tend to be high. Mayor Bailey stated citizens had queried why some areas got spot curb replacement and others got full curb replacements, which is an assessment difference of approximately $1,700. He asked Engineer Burfeind to explain the difference in cost between those two; Engineer Burfeind stated full curb replacement has a lot to do with settlement and it's actually cheaper to remove it all and replace it with a curb and gutter machine versus doing the spot curb replacement by hand. Mayor Bailey asked what type of curb would be installed; Engineer Burfeind stated they would stick with the surmountable curb. Mayor Bailey stated previously there were many issues with the soil quality and replanting of grass, etc. so he asked what the process is if there's a problem with the company chosen for the project and how the City can fix it. Engineer Burfeind stated the first step in the process is the soil. They've begun using premium topsoil, which was a great improvement with establishment of the grass. They're reviewing their process for the 2017 project to see if the City can take more control of the actually seeding. Mayor Bailey confirmed that the contractors and subcontractors aren't paid until the work is done and is found acceptable. Council Member Thiede suggested citizens take photos of their property before the work begins to ensure that it is restored to its original condition. Council Member Thiede asked regarding the way the assessments were done, full curb vs. spot curb costs; Engineer Burfeind explained the rationale behind that process. Mayor Bailey opened the public hearing. Randy Wuorenma, 7549 Homestead Avenue South, addressed the Council; he lives in a full reconstruction area. He asked why full reconstruction was needed on a low-traffic area, as it's just mainly the two dozen people who live there who travel that road. Seal coating had seemed to work fine and he wondered why they needed to tear up the street for new sewer and water lines, as those weren't broken and instead do spot fixes to the lines. He felt the areas in the City where grass had been reseeded looks terrible, is all weeds, and is not being watered regularly. He felt the replacement was not needed at this time. Molly Glenn, 7543 Homestead Avenue, in Rolling Hills, Block 2, stated she felt the same way; the street's in perfect shape with no splitting or cracking as others are. She felt a sealcoat would be fine and perhaps in five years, the street could be fixed when/if there are sewer or water problems. She didn't see a need for it at this time. She stated three-fourths of the residents on her street were there, and they're not having any issues. City Council Meeting Minutes September 7, 2016 Page 8 Duwayne Simons, 7878-76th Street, stated he lived on the street where they wanted to do total replacement. He stated that street is a main thoroughfare between Hinton Avenue and the high school. If it's worn out, it's not due to the people driving in their neighborhood; it's because thousands of cars take that as their shortcut around 80th Street to get from one place to another. He stated he walked the neighborhoods all the time and didn't see that theirs was much different along the curbs than most of the other neighborhoods in his area, even some that had been done a few years ago. If you want to fix the curbs, come remove the weeds. He said the dips in the roads were not an issue. He felt patching or resurfacing would be a better solution than to rip up the entire street and charge the amount of money they would be assessed. He stated the street was not that old, it's functional, and it should be an easy fix. Mayor Bailey asked Engineer Levitt to address some of the concerns raised by the citizens. She stated in 2008 this area was proposed to be reconstructed; at that time, the City Council had decided to defer that area because of the age of the pavement and the condition. As part of the CIP, it was pushed out into the future; now, that future time has come. In 2008, all of the residents on 76th Street were assessed under the same policy and don't pay for the wider, collector street, but pay for a standard city street and are not charged more for that. Mayor Bailey asked for feedback regarding the cul-de- sac; Engineer Burfeind stated there was pavement deterioration from the pavement cores. Once the stripping begins, it accelerates rapidly and if it were to be seal-coated, there would be no effect. In some areas, the road looks better than others. He said pavement cores are done because you really can't see everything from the surface, and it's important to take a look underneath. If existing curbs are left in place with a new street, there will be a lot more potholes, damage, and failure along the edge of the new roadway. Larry Haakenson, 7584 Homestead Avenue, asked if they could have a second assessment of the roadway condition; Engineer Burfeind stated Public Works looks at the streets, as does an engineering consultant, and the coring is done by a separate geotechnical firm. There are City staff, consultants, and geotechnical firms who evaluate the roadways and their conditions. Mayor Bailey responded to the various remarks made by citizens during the public hearing. He stated the City tries to manage the pavement projects so that there are approximately 100 properties involved so the assessments won't be too high for the property owners. An unidentified male resident stated the sewer lines were fine in that area; the storm sewers are working fine and don't need to be fixed. The drain field behind his house works just fine. There are only 24 homes in that area so it's not a high-traffic area. He felt seal-coating was all they'd need. City Council Meeting Minutes September 7, 2016 Page 9 Council Member Dennis stated the City has tried to establish a calendar for pavement management. The street maintenance should be done when it's necessary; if it isn't done, it will cost everybody more in the future. There is a scientific process used to determine when streets need replacement. Gary Orloff, a Public Works employee, was asked why they couldn't just sealcoat the street. He stated one reason is because the sealcoat needs something to stick to; they've been trying to do thin overlays throughout the City, but they're kind of at the end of their life. Public Works gets calls to patch holes and low spots that hold water; in his opinion, those streets were past the point of seal-coating as that won't stick anymore. He stated it's been a lot of work since 2008 trying to keep the roads in decent shape. Jeff Saindon, 9038 Upper 81st Street, lives in the Jamaica Ridge area. He had three questions: 1) He stated the proposed project ends at approximately 9042 Upper 81 st Street and thought it was weird that it didn't continue on, to Jeffery Avenue, and the road is being cut; he was curious as to why. He stated he understood that the neighborhood was built at a different time and is probably a little bit different pavement; Council Member Olsen stated that's exactly why. Mr. Saindon asked if there was a plan to follow up with the rest of Upper 81 st down the line soon or if it was going to be done years from now. Mayor Bailey stated he didn't know the actual date. Council Member Olsen stated they could look that up and get back to him; however, he stated they don't fix it if it doesn't need to be fixed. 2) Mr. Saindon stated the ends of the driveways were dug up and replaced in other neighborhoods; he wondered if that was going to happen with their neighborhood. Engineer Levitt stated they have full curb replacement and would anticipate a 5-foot patch behind the curb, into the driveway; they replace asphalt with asphalt and concrete with concrete. Concrete might not have a joint at 5 feet so they might have to take an additional panel on a concrete driveway to go back further. With a spot curb you wouldn't anticipate seeing the patch in the driveway unless there's a curb section being replaced immediately in the driveway. They'd work with the residents and notify them if that is the case because there are other driveway restrictions during concrete curb replacement. Their goal was to make a nice, even patch across there, 5-foot in depth, back into the driveway. 3) He asked about the project duration, starting in spring and ending in the fall. He said other neighborhoods had taken that long; Council Member Olsen stated he should pray for good weather. He stated some neighborhoods were finished but were without pavement for long periods of time; he asked if that's common or if there were other things going on that would extend the duration of the project, other than weather. Engineer Levitt stated Mr. Saindon was very observant because asphalt is actually placed in two lifts; the first base course is put down and then the contractor likes to put the final lift (which is what you see and drive on and the one you want to look the best) after the first lift goes down. Once that's done in the entire area, then they come through and put the final layer down altogether. Therefore, some areas sit with the first base course for a longer period of time than other streets, just depending on the staging and phasing of the development. The good news is when the base course is put down, there's no more dust or other challenges to deal with, which is a benefit. Mr. Saindon stated he's seen when that's City Council Meeting Minutes September 7, 2016 Page 10 not done, as his parents live in Maplewood; Maplewood had struggled with this and the roads are a mess, falling apart, and his parents are now going to get a big assessment. Council Member Olsen stated there are a number of communities in the metro area that struggle to keep up. Also, 55% of the assessments go through the General Fund, which is a significant expense for all taxpayers. As more development, commercial development, and roadways are added, the City has to keep up. Council Member Olsen stated that the Public Works Department expends a lot of effort to keep the City's roadways nice. He stated Cottage Grove has the best snowplowing of any City in the metro area, which is done on purpose, and they get up in the middle of the night to make that happen. He stated that Gary Orloff has developed a process for applying thin overlays, with a little less aggregate, to the streets to try to keep it sticky and keep it nice. Also, Public Works Director Les Burshten worked in the asphalt business for many years before he came to work for the City of Cottage Grove; therefore, there's a lot of knowledge in the City about the roads. MnDOT specifications are also used on every project done in the City. No one likes to pay assessments, but the City tries to be fiscally responsible with the projects. Council Member Thiede commented on the assessments, stating at one time he felt it was okay if the roads were a little rough to make cars drive slower on them, but the City looks at repair costs in all of the areas. Assessments aren't a fun thing to talk about, but the work needs to be done. He stated there's almost $2,000 difference in the assessments in Rolling Hills; he felt they should look at that and try to make those assessments more equal. Mayor Bailey stated they could look at those numbers. Engineer Burfeind answered a question from a resident about the assessment process. The previous Pavement Management Task Force, in 1994, created the Special Assessment Policy, which outlines how various types of properties are assessed; those include residences, churches, and businesses. The residents pay 45% of their project cost. Rolling Hills full curb replacement is broken down to specifically look at the total project costs and then 45% of those are assessed to the homes. If there are 53 homes, that's divided into the total project costs, which is how the assessment is calculated. Everyone is treated equitably; there is not a larger assessment if you live on a corner lot or if you live on a cul-de-sac. At this point, it's just an estimate of construction costs; once the project is completed, they will have the final project costs and then will determine the actual assessment for each property. Council Member Olsen asked Engineer Burfeind to speak about the Special Benefit Appraisal and how that process works. Engineer Burfeind stated they look at the benefit to the actual property and they're not allowed to assess for more than that; therefore, if the Special Benefit Appraisal is less, it's capped at that amount. A third- party company performs that appraisal. It is noted that better road conditions increase property values; however, you won't be taxed more for the increase in your property value. It's another step in the process to make sure the City is being equitable and we're not assessing more than we should be. That information will be provided at the City Council Meeting Minutes September 7, 2016 Page 11 Assessment Hearing. Mayor Bailey stated they'd be able to see how their house was used in their particular area as a guide for the Special Benefit Appraisal amount. Michael Nastich, 7595 Homestead Avenue, stated the Council is talking about possible problems they can have and the money, but he wanted to ask if there were any reports where they could see the current technical condition of the roads. He felt the technical condition was the only issue, not the age. Mayor Bailey stated they'd make sure he got a link to the full report from Bolton, Inc., which lists everything in there, the different stages of each neighborhood. Council Member Olsen stated he's right, it's not an age issue, but it's the ride ability of the road and cited 80th Street as an example. Council Member Thiede asked if it was possible for someone to go out to that area and point out some things and go over the report with the residents; he was told that yes, that's possible, and Engineer Burfeind could assist them with that. Council Member Thiede asked Director Burshten to check the cul-de-sac where the resident stated he had to shovel approximately 10 feet to follow up and see what the situation is and how it could be resolved. As no one else wished to speak on this item, Mayor Bailey closed the public hearing. Motion by Council Member Olsen to Adopt Resolution 2016-140, ordering the 2017 Pavement Management Project and authorizing the preparation of plans and specifications for Districts B1 and F3, second by Council Member Peterson. Motion carried: 5-0. 10. BID AWARDS — None. 11. REGULAR AGENDA A. Multifamily Housing Revenue Bonds Adopt Resolution 2016-141 authorizing the issuance, sale, and delivery of multifamily housing revenue bonds. Finance Director Robin Roland stated there was a public hearing on May 4, 2016, to consider issuance of housing bonds, pursuant to Minnesota State Statute Chapter 462C. The housing bonds are sought by the Cottage Grove Leased Housing Associates I, LLLP (a Limited Liability Limited Partnership, which is referred to as Dominium Corporation. They're in the process of acquiring the land to construct a 184- unit senior rental housing development close to Highway 61 and 80th Street. This project will need the financing from multifamily housing revenue obligations in one or more series, taxable or nontaxable, but not to exceed $25,000,000. On August 1, 2016, the State authorized bonding authority, and the Cottage Grove Leased Housing Associates, the borrower, received authorization from the State Bonding Authority for $18,422,674 in notes that they are authorized to issue under State Statute. City Council Meeting Minutes September 7, 2016 Page 12 Tonight, the City Council is being asked to consider the Resolution to provide final approval to the issuance of those notes and the execution of loan documents and related documents. Later this month, Dominium expects to close on the property and the amount of money that they will be able to issue through the City of Cottage Grove in these housing revenue notes will assist in financing that closing and the construction of the property. If the City agrees to these notes, they are considered conduit revenue bonds, which are expected to be issued in a taxable and nontaxable series. The City is not responsible for the payment of those bonds; the borrower is responsible. We are but a conduit for the borrower to borrow the money as tax-exempt funds; they are responsible for the ultimate repayment of those and the City is not responsible in any way. The notes are secured by the revenues derived from the housing development and the loan agreements; they are considered a private activity bond, which means that these bonds do not affect the City's ability to issue further debt. If they were other types of bonds, the City might be restricted as to how much more debt we could issue this year. As the City just authorized a project, they might need some money for that project in the 2016 Pavement Management Project so will definitely appreciate the fact that we are not restricted in that ability to bond for those projects. Julie Eddington, the City's representative from Kennedy & Graven, was present; she was handling the conduit debt project for the City. The borrower not only pays all of the fees associated with the issuance of this debt, but also a fee to the City for the ability to issue this debt. Julie was present to answer any questions the Council might have. Director Roland asked that the Council approve and adopt the Resolution. Council Member Olsen stated this is not an uncommon process in municipal government. He complimented the Finance Department staff on working so closely with Dominium to ensure that this project got financed in this way. He asked what happened if, worst case scenario, the end user should default and what that would mean for the City. Ms. Eddington stated if there was a default on the bond issue, the people who bought the bond, the construction lender, BMO Bank, would own the entire amount of the construction debit, and Freddie Mac would take it over once the construction was complete, and they'd be the permanent lender. So, in the off chance that Dominium would have a default, the bondholders would be responsible for foreclosing on the mortgage, and they would be responsible for any losses. The City would not be responsible for any losses, and it would also not impact the City's credit rating when the City tried to get its own general obligation or revenue bonds. Motion by Council Member Thiede to adopt the Resolution 2016-141 authorizing the issuance, sale, and delivery of multifamily housing revenue bonds, second by Council Member Dennis. Motion carried: 5-0. 12. COUNCIL COMMENTS AND REQUESTS City Council Meeting Minutes September 7, 2016 Page 13 Council Member Dennis stated they're seeking the community's help in finding some staff inembers for the Eagles Bar & Grill at the River Oaks Golf Course; they're looking for people with culinary talent. Interested people can contact Council Member Dennis and/or James or Scott at River Oaks. Mayor Bailey also commented that he'd had the pulled pork sandwich at River Oaks and "it's to die for." Council Member Olsen thanked the staff at the River Oaks Golf Course for entertaining two different Fantasy Football Leagues, in which he participates. River Oaks was chosen as the location to hold the annual draft parties this year, and they did a great job. The food was delicious, the service was great, staff was extremely responsive, and the facility was perfect. He encouraged anyone looking for a place to hold an event to reach out to the River Oaks Golf Course and let them know you're interested. Council Member Olsen thanked Bryce Bernard for sitting patiently throughout the Council Meeting. He's a Boy Scout who was present to receive his badge. Council Member Olsen stated now that school is back in session, there were lots of children walking to school; it's important when citizens are driving that they drive slowly and watch for pedestrians. Council Member Peterson stated the Beyond the Yellow Ribbon meetings have started again; the next is scheduled for Thursday, September 15, at the Cottage Grove Armory. Council Member Peterson also stated that Thursday, September 15, is the next Fare For All grocery-buying opportunity. It's a nonprofit organization that helps to provide food shelves with food, but it's also an opportunity for people to buy frozen meat and fresh produce at great discounts. It takes place once a month at All Saints Lutheran Church and they're always looking for volunteers to help out. If interested, contact Council Member Peterson at 651-271-2287. Council Member Peterson stated Oktoberfest is coming up, which a fund raiser for the Friends in Need Food Shelf; it will take place at Hope Glen Farm on Sunday, October 16, in the afternoon. More information is available on the Friends in Need Food Shelf website. Council Member Peterson stated the Monster Bash Parade will take place on Saturday, October 29; it will be on East Point Douglas Road and it starts at the School District Service Center near McDonald's and goes to the other School District building near Applebee's. She encouraged people to attend and participate. Mayor Bailey stated the date for this year's Holiday Train is Friday, December 9. They'll be arriving in Cottage Grove; more information regarding the location and fundraising opportunities will be forthcoming. He hoped everyone would show up on that date. City Council Meeting Minutes September 7, 2016 Page 14 Mayor Bailey spoke about fundraising for the Inclusive Playground on Sunday, September 18, to hopefully get to the final stage of the fundraising for the park, to be located in Woodridge Park. They're currently at 67% of the goal and hope to hit 100%. The goal is to start building next year. It will be a community walk fundraiser, sponsored by the City of Cottage Grove and Thrivent Builds. They want many people to come out for this event; the cost is $25 for an individual, an entire family for $50. If you preregister, everyone preregistered will get a T-shirt to wear to identify themselves as a supporter of the Inclusive Playground. There will be free food, drinks, and examples of items that will be in the playground. They'll be looking for free will offerings and donations for the project. They want everyone to have a good time. It will be the largest Inclusive Playground in the State of Minnesota. It will allow handicapped children and adults to play right next to children/adults who don't have disabilities. Mayor Bailey stated that the Steering Committee approved this evening, "My Future Cottage Grove," will have its first kickoff ineeting on September 20, in the Training Room at City Hall. The meeting will be taped and will be broadcast in the future on cable access. 13. WORKSHOPS — OPEN TO PUBLIC — CONFERENCE ROOM A. 65th Street Turn-Back Council Member Olsen stated if Washington County has not moved from their previous position, and would provide $2,000,000 for the turn back, he wanted to make it clear that he did not support the idea to turn back the road. He didn't think the value was there for Cottage Grove, and he felt it was going to create much more work and hardship for City staff. He therefore would not support it. Council Member Thiede stated he felt the same. Administrator Stevens stated if the Council didn't feel a presentation was necessary tonight, she felt it didn't need to be gone through again. Mayor Bailey asked where we went from here; if we stated we weren't interested in the turn back for the $2,000,000, he supported that, but there's a school that needs to be built on a County road, so what's next? Administrator Stevens stated that the County understands that the City may not be amenable to these terms; they still want our input on the preferred design. She stated she thought our preferred design was still roundabouts. They would still like to see County participation in the roadway, and she thought it would be reasonable to go back to the County and ask how much money they were willing to put in as a contribution to improvements to assist with the development of the school. Without that money, it leaves a gap in the construction costs, which would either have to be financed by the School District and we could look for an increase from them or look to increase the City's own share in that project. City Council Meeting Minutes September 7, 2016 Page 15 Council Member Peterson asked where we were sitting with the whole issue with Newport. Administrator Stevens said there was approximately $600,000 in the Newport section, and they still expect that Newport or some County partnership would contribute to that, but that would not be Cottage Grove's contribution. Engineer Levitt stated there were two pieces of the puzzle that they felt had significant value to Newport, and they needed to understand if the School Board or Washington County was going to contribute to that; clearly, it's an expense that she and others didn't feel should be a burden upon the City of Cottage Grove. Council Member Olsen and Council Member Thiede agreed with Engineer Levitt. Council Member Thiede stated he didn't feel the roundabouts were necessary. Administrator Stevens asked Engineer Levitt to give an abbreviated version of her presentation to help everyone understand the roundabout issues and Mayor Bailey agreed. Engineer Levitt stated usually traffic signals are a cheaper option; in this case, there were a few new challenges: There was a giant ravine in that area; they'd need to widen the road to get the turn lanes developed there for a traffic signal, meaning the ravine would need to be filled. They'd be adding a retaining wall and that'd be expensive and hard to stabilize. Dirt is expensive so we don't like to use it. There's a high point in the road; the problem is at 50 miles per hour, you need a sight line distance. With that, they'd actually have to lower the hill 15 feet. If the speed limit were dropped down to 45, they'd be cutting down 8 feet of hill. Council Member Thiede stated obviously there'd be increased traffic at the school and the potential of more homes. Council Member Thiede asked if they'd had any issues to date with the road the way it is now. Engineer Levitt stated the problem isn't actually with the road pavement in this section; it's more about a level of service at the intersections themselves. There would be a very poor level of service there. If you just add a turn lane at Goodview or Geneva, you wouldn't see any great modifications made so the steepness of that wouldn't be adjusted as part of it. So, you're just going to see a very high level of frustration for the motorists. As mentioned, if homes begin to be built, that frustration is going to grow. Engineer Levitt stated the challenge is the sight line issues, and with the roundabouts, because of the lower speed, they wouldn't actually have to reduce the hill between 8 to 15 feet, which is a huge money savings. That's why it becomes more economical. Also, with the roundabout, it can shift over to another quadrant and avoid the ravine altogether. So, it's really almost not feasible to think about putting in traffic signals because the unknowns of that ravine, the sight line, and lowering the hill 15 feet are very expensive. Traffic near Cottage Grove Elementary already has that issue. You'd have that same issue with this proposal except there'd be a higher volume of traffic. They'd worked with the School District and put up additional signs, etc. Washington County didn't do any road work but put up signs and worked on some additional tapers City Council Meeting Minutes September 7, 2016 Page 16 to get more stacking. Council Member Olsen stated it was difficult getting in and out of Cottage Grove Elementary because of the speed of motorists. Administrator Stevens stated the recommended design is a roundabout; it's just how that would be paid for. The School District is committed to the project; they're paying 100% of one section, 66% of another, and 50% of another. The School District is paying approximately $1,800,000 of$3,100,000, so there's a deficit of approximately $1,200,000. Council Member Thiede asked how much Washington County was going to pay; he was advised at this point, Washington County is paying nothing. Mayor Bailey stated Washington County would give Cottage Grove $2,000,000 cash, two years of maintenance on 65th Street, if Cottage Grove takes all of 65th Street. Council Member Olsen stated the value for that is still not there. Mayor Bailey stated the engineers' estimate to bring that road up to urban standards was approximately $8,000,000. Council Member Olsen stated he just didn't feel it was a good deal. Mayor Bailey told Council Member Thiede after hearing the cost issues between streetlights and a roundabout, it financially made sense to go with a roundabout. Council Member Olsen also stated it would be safer. Mayor Bailey stated he would support the roundabout option, but if the Council agreed, he wanted the City to go back to Washington County and say we were not interested in taking back all of 65th Street. However, they'd like to see Washington County participate in some of the infrastructure in that area and for Washington County to help bridge the gap. Council Member Olsen asked Director Roland if she felt the Council was making the right call financially, and she stated that she felt they were. Council Member Olsen stated the maintenance costs alone were going to be high; Director Roland stated that's what Director Burshten had told her. Administrator Stevens stated that staff wise, with a lot of options, they really felt their number was $3,000,000 to take 65th Street back, whether it's cash, credit, or bond projects; however, that puts an obligation on the City. They didn't think they could recommend it. Mayor Bailey stated it would leave the City with a fairly significant deficit, with the amount that any developers could possibly help fund this project. Administrator Stevens stated that the majority of that area is already developed, and there was only a small section left to develop. If we were taking back the road and much of it was undeveloped, then we could probably justify it by recouping development costs. Attorney Land wanted to know the length of 65th Street that they were talking about. Engineer Levitt stated it would go from the Newport border and the section where it would end was near ldeal Avenue on the east side. City Council Meeting Minutes September 7, 2016 Page 17 Mayor Bailey asked if they needed a motion; Administrator Stevens stated she felt a motion wasn't necessary, as there was clear direction from the Council to go back to Washington County. If the Council wished to make a motion, they certainly could. Council Member Dennis stated Cottage Grove doesn't want to subsidize anything on the Newport side. He agreed with the roundabouts. He thought they had worked well with Washington County on other projects and were appreciative of that. He agreed with the decision on this particular project. Mayor Bailey concurred that this project just didn't work for us and a different solution for the problem would need to be found. Motion by Council Member Olsen that the City of Cottage Grove reject Washington County's offer of$2,000,000 for the turn back at 65th Street, as well as two years of maintenance and the City acquiring the right of way for the roundabouts at Geneva and Goodview, second by Council Member Thiede. Motion carried: 5-0. 14. WORKSHOPS — CLOSED TO PUBLIC — None. 15. ADJOURNMENT Motion by Council Member Olsen, second by Council Member Peterson, to adjourn the meeting at 8:57 p.m. Motion carried: 5-0. Minutes prepared by Judy Graf and reviewed by Joe Fischbach, HR Manager/City Clerk.