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HomeMy WebLinkAboutMinutes i� ��tJV� �ri°t � y � ............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... ���� �ri e ar�d PC�� t MINUTES COTTAGE GROVE CITY COUNCIL July 19, 2017 COUNCIL CHAMBER 12800 RAVINE PARKWAY SOUTH 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 July 19, 2017, 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, 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 Wayne Johnson, Council Member La Rae Mills, and Council Member Dave Thiede. Also present were: Charlene Stevens, City Administrator; Korine Land, City Attorney- LeVander, Gillen & Miller, PA; Ryan Burfeind, Assistant City Engineer; John Burbank, Senior Planner; Les Burshten, Public Works Director; Christine Costello, Director of Economic Development; Zac Dockter, Parks and Recreation Director; Joe Fischbach/HR Manager/City Clerk; Jennifer Levitt, Community Development Director/City Engineer; Sharon Madsen, Communications Coordinator; John McCool, Senior Planner; Robin Roland, Finance Director; Craig Woolery, Director of Public Safety; Pete Koerner, Police Captain. 4. OPEN FORUM Mayor Bailey opened the open forum and 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 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 July 19, 2017 Page 2 Motion by Council Member Thiede, second by Council Member Dennis, to adopt the agenda. Motion carried: 5-0. 6. PRESENTATIONS A. Swearing In Ceremony - Police Officers Brian Thomas, Brandyn Graff, Joseph Pierre, Alec Bobick, Andrew Ronning Administrator Stevens stated tonight she would administer the Oath of Office for the five new police officers, now that they had completed their field training. She gave the background of each of the new officers and indicated who would be pinning on their badges this evening. Administrator Stevens had the five new officers recite the Oath of Office. Director of Public Safety Craig Woolery spoke of the officers and their field training process. He stated that they were a fine group, and their badges were a symbol of trust for the community. Each officer signed his Oath of Office; Director Woolery then invited the designated family members to come forward to pin on their respective officer's badge. Mayor Bailey and the Council Members congratulated the officers and welcomed them. B. 2017 Night to Unite in Cottage Grove - Presentation by Captain Pete Koerner Staff Recommendation:Adopt Resolution 2017-093 proclaiming Tuesday, August 1, 2017 Night to Unite in Cottage Grove Captain Koerner stated Officer Adam Pelton was the new Night to Unite liaison, as Officer Gail Griffith had retired. Captain Koerner gave an overview of Night to Unite; he felt it strengthened community spirit and police-community partnerships. There are approximately 40 neighborhood block parties in Cottage Grove every year. Night to Unite gatherings planned for 2017 include the following: • Noon Out, at Presbyterian Homes/Norris Square, another at White Pine, with the neighborhood events taking place in the evening, beginning around 5:00 p.m. • A "Fill the Backpack" campaign; the Public Safety Board donates 30-to-40 backpacks, one for each neighborhood, and the neighbors are encouraged to bring school supplies to fill the backpacks. The following day the backpacks will be delivered to the Friends in Need Food Shelf, which they use for their school drive. Paper product donations are also accepted; neighborhoods are encouraged to collect toilet paper, paper towels, and napkins. Those will be given to the Friends in Need Food Shelf. • Parks and Recreation is having a coloring test; the winner receives a free reservation to the Highlands Park building, next to the Splash Pad. • Greg Bonngard of Bonngard's Family Meats has agreed to donate 400 hot dogs for neighborhood parties. Once the groups have signed up, there are 10 drawings and each winner will receive 40 hot dogs and buns. City Council Meeting Minutes July 19, 2017 Page 3 This year, so far, 35 parties have been registered. If you have questions, there is information on the website; click on the online photo and it will bring you to the application. Also, applications are available in the Public Safety lobby. Captain Koerner stated everyone is invited. When people complete the application, they're asked if they'd rather see a fire truck or a police squad at their party, but many people also like a visit from the Mayor and the Council Members. He encouraged Council Members to ride along with Public Safety personnel to attend the parties. If there are any questions, contact Officer Adam Pelton or the Public Safety Administrative Office at 651-458-2850 where Julie Berg will be happy to answer your questions. Mayor Bailey encouraged everyone to be part of Night to Unite in Cottage Grove. Mayor Bailey read the Night to Unite proclamation. Motion by Council Member Thiede, second by Council Member Johnson to Adopt Resolution 2017-093 proclaiming Tuesday, August 1, 2017 Nightto Unite in Cottage Grove. Motion carried: 5 -0. 7. CONSENT AGENDA A. Approve the June 21, 2017 City Council Regular Meeting Minutes. B. Receive and place on file the approved minutes for the Parks, Recreation and Natural Resources Commission meeting on March 13, 2017. C. Receive and place on file the approved minutes for the Arts Commission meeting on May 2, 2017. D. Authorize issuance of a temporary liquor license and single-occasion gambling permit to the Church of St. Rita for their Fall Festival event on September 16 & 17, 2017. E. Adopt Resolution 2017-095 approving the plans and specifications and establishing a bid date of August 24, 2017 for the Central Fire Station Emergency Vehicle Hybrid Beacon Project. F. Adopt Resolution 2017-094 approving the plans and specifications and establishing a bid date of August 24, 2017 for the construction of Well No. 12. G. Approve the Water Conservation Grant Agreement between the City of Cottage Grove and Washington County for $5,000 to be used for water efficiency and conservation. H. Adopt Resolution 2017-098 awarding the Jordan Monitoring Well construction project to E.H. Renner & Sons, Inc. in the amount of$29,780. I. Authorize Public Works to sell surplus property on eBay or Cranky Ape. J. Approve the Stormwater Management Agreement with Hy-Vee, Inc. K. Adopt Resolution 2017-101 approving the plans and specifications and establishing a bid date of August 24, 2017 for the Cayden Glen Final Streets Project. City Council Meeting Minutes July 19, 2017 Page 4 L. 1. Adopt Resolution 2017-102 authorizing the preparation of the Business Park Alternative Urban Area-wide Review (AUAR). 2. Approve the proposal by Stantec for the Business Park AUAR. M. Authorize the City Administrator to execute the Letter of Intent (LOI) with HAF Development for the purchase of the City-owned parcel of land at the intersection of Harkness Avenue and Hardwood Avenue. Council Member Thiede wished to pull Item E wished to pull Item for comment and/or further discussion. He asked Engineer Levitt what process had been undertaken to choose the hybrid beacon. Engineer Levitt stated it was first identified by the Fire Department as they were doing tours of other fire stations, specifically Roseville. They indicated it had actually aided in efficiency in exiting the fire station and promoted safety in the area with pedestrians and motorists. They explored options for a flashing beacon system to enhance safety, as 80th Street is a four-lane undivided highway with high traffic volumes. Because 80th Street is a State Aid road, the design has to meet specific warrants and designs; the design is being dictated by the Minnesota Department of Transportation. Council Member Thiede asked if there'd ever been any incidents of traffic interference near the Fire Station; Engineer Levitt stated she'd have to defer that question to the Public Safety Department. She felt this would provide for a more efficient and safer exit from the fire station. Council Member Thiede asked if the payment for that could be paid with bonds or tied in with the building costs. Engineer Levitt stated that the payment for the beacon would be coming out of the Streetlight Utility instead of through bond proceeds. Motion by Council Member Mills to approve the Consent Agenda, second by Council Member Dennis. Motion carried: 5-0. 8. APPROVE DISBURSEMENTS A. Approve payments for the period of 6/21/17-7/20/17 in the amount of $4,934,687.77. Motion to approve disbursements by Council Member Johnson, second by Council Member Mills. Motion carried: 5-0. 9. PUBLIC HEARINGS A. Hy-Vee, Inc. Liquor Licenses Staff Recommendation: 1. Hold the public hearing. 2. Authorize issuance of On Sale Intoxicating and On Sale Sunday Liquor Licenses to Hy-Vee, Inc. DBA Hy- Vee Market Grill. 3. Authorize issuance of an Off Sale Intoxicating Liquor License to Hy-Vee, Inc. DBA Hy-Vee Wine & Spirits. City Clerk Joe Fischbach stated Hy-Vee had submitted an application for both an off sale and an on sale liquor license for their Hy-Vee store. The Police Department City Council Meeting Minutes July 19, 2017 Page 5 performed background checks on Hy-Vee as well as the applicant, and nothing was found that would preclude them from holding a liquor license in the City of Cottage Grove. Clerk Fischbach asked the City Council to hold the public hearing and then approve their liquor license if there isn't any negative testimony. Mayor Bailey opened the public hearing and asked if anyone would like to speak on the Hy-Vee, Inc. liquor license. As no one wished to speak, Mayor Bailey closed the public hearing. Motion by Council Member Thiede to authorize issuance of On Sale Intoxicating and On Sale Sunday Liquor Licenses to Hy-Vee, Inc. DBA Hy-Vee Market Grill, second by Council Member Johnson. Motion carried: 5-0. Motion by Council Member Thiede to authorize issuance of an Off Sale Intoxicating Liquor License to Hy-Vee, Inc. DBA Hy-Vee Wine & Spirits, second by Council Member Mills. Motion carried: 5-0. B. City of Cottage Grove and Cottage Grove Economic Development Authority Public Financing Criteria and Business Subsidy Policy. Staff Recommendation: 1. Hold the public hearing. 2. Adopt Resolution 2017-096 establishing Cottage Grove's Business Subsidy Policy. Director of Economic Development Christine Costello stated as part of the City's Strategic Plan of positioning for growth, one of the implementation steps was to review the City's Business Subsidy Policy; it was last reviewed in 2003. They worked with Ehlers & Associates, the City's financial consultant, on this process. They looked at background information and asked the Economic Development Authority (EDA) and City Council to go through a public financing criteria forum to get some feedback; Director Costello stated that occurred at the June EDA meeting, where a draft of the Business Subsidy Policy was presented. The EDA approved the draft and forwarded it to the City Council for recommendation. James Lehnhoff of Ehlers & Associates will present the Business Subsidy Policy for the Council. Mr. Lehnhoff stated he'd provide a quick overview of the policy and would then take any questions. He felt it was good to realize why we'd looked at this policy and the business subsidy process. The reasons were: 1) It helps to set the economic development priorities for the City; 2) It helps with the evaluation procedure, knowing the Statutory requirements, City technical requirements, and other City policies in play; 3) Provides guidance to the staff, where staff should be proactive in setting priorities; 4) Helps potential developers with where their project might or might not fit for a business subsidy. Of course, EDA and City Council feedback are key aspects of any planning process. Mr. Lehnhoff reviewed the following: State Statute definition of what a Business Subsidy is; it's primarily narrowly defined around economic development, retaining and City Council Meeting Minutes July 19, 2017 Page 6 creating jobs. The City needs to set Job &Wage Goals; if there are ever modifications to those goals, another public hearing is required. Compliance with this policy does not automatically mean compliance with the Comprehensive Plan or other land use expectations or building permits; anybody who applies through this process must still go through all of the other normal City processes. Conformance with the policy does not guarantee that the City will provide a business subsidy; it's still reviewed on a project by project basis, as resources are available. City's Objectives for the Public Financing Policy include: • Principles: These set up the structure if a project is approved for any type of business subsidy, including the evaluation process, and how it comes together. If the project wouldn't go forward but for the assistance, that's very important and is also associated with Tax Increment Financing (TIF) but it really extends to any type of business assistance. • Minimum Qualifications: Any project must meet these qualifications, but it also must be in conformance with the City's Comprehensive Plan and Land Use Guidelines. It must be shown that it's feasible via market studies; the developer agrees that they can actually build what's approved and have the financial backing to do so. • Stabilization: There's somebody there who shows that this project will be stabilized and continue to perform. • Desired qualifications, rated with each project, include leveraging and meeting as many objectives as possible. Job and Wage Requirements: The requirement is for a minimum of one new full-time job for every project, that's at 200% of the State minimum wage, which is $19 an hour in 2017. However, it can be reviewed on a project by project basis. Technical Requirements: Having written Subsidy Agreements. The State has reporting requirements so the City has to get that information to the State on a regular basis. Mr. Lehnhoff stated he'd take any questions or comments. Council Member Thiede confirmed that this policy was for the entire City, not just the Business Park. He asked if there was a business that was going to create a significant benefit for the City, but they had a lot of variation in their wages, some high, some below $19 an hour, if this policy is saying they couldn't get any subsidy from the City. Mr. Lehnhoff clarified the Job & Wage Requirement; the policy says that the project must create one new job at $19 per hour. If there was one job at the $19 per hour and 10 that were a lesser hourly rate, that would fit in line with the proposed policy. Council Member Thiede felt that wasn't very clear in the policy and perhaps the language should be amended. Council Member Thiede stated as he looked at the policy, he didn't think he saw anything that gave the EDA the opportunity to engage some subsidy up to a certain value; he asked if any subsidy being offered will need approval by the Council. Mr. Lehnhoff stated as it is right now, any subsidy would require Council approval. City Council Meeting Minutes July 19, 2017 Page 7 Mayor Bailey opened the public hearing and invited anyone who wished to speak on this topic or had questions to step forward. As no one wished to speak, Mayor Bailey closed the public hearing. Motion by Council Member Dennis to Approve Resolution 2017-096, establishing Cottage Grove's Business Subsidy Policy, second by Council Member Thiede. Motion carried: 5-0. 10. BID AWARDS A. Water Meter and Radio Transmitter Replacement Project Staff Recommendation: 1. Adopt Resolution 2017-099 awarding the bid for water meters and radio transmitter equipment to Winwater Works in the amount of $521,299.98. 2. Adopt Resolution 2017-100 awarding the bid forinstallation of water meters and radio transmitter equipment to Winwater Works in the amount of$187,058.88. Public Works Director Les Burshten stated tonight they're asking for approval to continue the radio transmitter replacement program, which was started a few years ago. The bids were opened on June 15; two very good companies bid, and they're recommending the bid be awarded to Winwater in the amount of$708,358.86. The Engineer's estimate was $828,000, and budget allowed about $375,000 per year for two years ($750,000 for the project), so we're both under the Engineer's estimate and under budget. Winwater is a good company; they're supplying a good product and also will be installing the meters. Director Burshten asked the Council if they had any questions. Vern Jacobson from TKDA, Todd Phillips from Winwater, and three Public Works employees, Harry Taylor, Rick Alt, and Richie Moen were also present to answer questions. Council Member Johnson asked if they'd achieved the goal of having an all- encompassing, one-piece system that does not require wiring going through the houses; Director Burshten stated that was correct. There will be one meter, with radio attached to the meter, and it should be installed quickly and easily. They plan to use that system for a number of years. Council Member Johnson asked if there was any guarantee that this technology will be supported for the life of the product; Director Burshten stated that was correct and deferred to Vern Jacobson, who stated the company's been around for 150 years, the product will remain the same, and the support will be there. Council Member Johnson confirmed that there would be continuing support and knowledge of how the system worked. Mr. Jacobson stated even if improvements are made going forward, they should be compatible; today's product should be compatible with what's built in the future. Council Member Thiede stated he'd checked with Brian Bluhm, the City's IT City Council Meeting Minutes July 19, 2017 Page 8 Coordinator, with respect to technology; Mr. Bluhm approved it and said this company is pretty progressive with some of the new technology. If, in the future, we go to another sort of technology, it should be able to actually accommodate it and be able to work with it. Mr. Bluhm felt very comfortable going forward with this. Council Member Johnson stated he appreciated Public Works staff sticking with this and coming in under budget; he knew it was a lot of work to achieve the goal that we had, to make it less invasive, make it work for us and the City going forward, and he thanked them for their efforts in that regard. Motion by Council Member Thiede to Adopt Resolution 2017-099, awarding the bid for water meters and radio transmitter equipment to Winwater Works in the amount of $521,299.98; second by Council Member Dennis. Motion carried: 5-0. Motion by Council Member Johnson to Adopt Resolution 2017-100, awarding the bid for installation of water meters and radio transmitter equipment to Winwater Works in the amount of$187,058.88; second by Council Member Thiede. Motion carried: 5-0. 11. REGULAR AGENDA A. Solar Energy System Ordinance Amendment Staff Recommendation: Pass Ordinance 985 amending the Solar Energy System Ordinance. Senior Planner John McCool stated an Ordinance has been prepared that would repeal the current Solar Energy System Ordinance that was adopted in 2015. The new Ordinance will be enacted for the new regulations. Most of the regulations have not changed; there are perhaps six that will be proposed in the new Ordinance. Since 2015, there were five applications submitted to the City for conditional use permit applications for community solar garden systems. Four of the five conditional use permit applications were approved by the City. The four approved community solar garden projects will continue to be allowed by Ordinance; they will be grandfathered in even if they don't meet the new regulations that are adopted this evening. Planner McCool stated in 2016 the City Council adopted Ordinance 965, which is an interim Ordinance for purposes of prohibiting the City's acceptance of any applications for community solar or solar farms. The purpose of that interim Ordinance was for the City staff to look at the City's current Ordinances, adopted in 2015. At that time, the discussion was primarily focused on setbacks of solar systems, community solar gardens, and solar farms from property lines. The second issue was whether it should be a conditional use permit or an interim conditional use permit for those types of systems. The Planning Commission and City Council had both conducted workshops in early 2017, and the Planning Commission held a public hearing on May 22, 2017. City Council Meeting Minutes July 19, 2017 Page 9 Planner McCool reviewed elements of the Ordinance, which were discussed and agreed upon by both the Planning Commission and the City Council. The City Attorney has drafted the Ordinance; it's recommended that the Council adopt an Ordinance repealing Ordinance 948 and enact a new Solar Energy System Ordinance this evening. Council Member Johnson asked four questions: If the four grandfathered projects were in conflict with any of the changes that have been made; if any of those projects had started yet; if there was a period of time set and when that had passed the City could say they hadn't moved forward, so they'd have to start over and agree with the current guidelines; and if they didn't build it for five years if they could say the grandfather period was over and they'd have to follow the new Ordinance. Planner McCool stated the grandfathered projects would not be in compliance with the 300-foot setbacks. Planner McCool stated they had started their design with Xcel Energy; they've entered into agreements with Xcel Energy, and made financial deposits with Xcel. The 80-acre project, located 1/4-mile south of 70th Street, had made their application for a building permit for their project; their development plans for the electricity that would be connecting to Xcel will be reviewed. The other three projects are still in design with Xcel Energy. Planner McCool stated the City Ordinance for conditional use permits has a one-year expiration if they have not made use of it. It was determined because they'd entered in and made the deposits of money to Xcel Energy that they have initiated use of their conditional use within the one-year period. Attorney Land stated what they'd do for the grandfathered projects is see when they'd submitted everything to Xcel, if Xcel was completely satisfied, and then we'd start the one-year clock. It's not an indefinite time that they have to build their project. We'd wait to see if all of the other requirements had been met from outside agencies, and then the one-year clock would be started by the City. Council Member Johnson confirmed if they don't start building, they'd basically have to start over from scratch. Motion by Council Member Mills to pass Ordinance 985, amending the Solar Energy System Ordinance, second by Council Member Dennis. Motion carried: 5-0. B. Water System and Watering Ban Update Staff Recommendation: 1. Provide direction to staff on the option for lifting the watering ban. 2. Pass Ordinance 986 amending City Code Title 8, Chapter 1 regarding water conservation penalties. 3. Adopt Resolution 2017-097 amending the watering ban. Engineer Levitt provided an update for the public regarding the water treatment being installed at two Wells in Cottage Grove, Well 10 and Well 3. Both are on schedule. Well 10: Start up and testing of the facility will take place on July 24. We need to receive testing results before the system can be operated. The electrician will be City Council Meeting Minutes July 19, 2017 Page 10 working very aggressively the week of July 24 to finish the fine tuning. Well 3: We are on schedule for delivery of the carbon placement media for August 7 and August 8. The backwashing of the media will take place before we can go live with it. The week of August 8 through 11 will be when the electrical components work will take place. At that point in time, the system will be allowed to become operational and in use. We're under an approved operational plan by the Minnesota Department of Health. The City of Cottage Grove implemented a watering ban on May 23; as part of that operating plan, we have been able to provide water to residents, which is actually lower than the health-based value (HBV) established. We've been using three wells and supplementing with a fourth well as we need it. The residents can be confident that the water that they are consuming is all below the HBV during this time. The typical daily water consumption ranges from 2.5 million gallons to 4.3 million gallons. We're looking at changes to the Water Conservation Ordinance. One relates specifically to deleting a section of the Ordinance that said that any property may be watered on the 31 st day of the month. We know under the currently-restricted system, our capacity cannot allow every single property in the City of Cottage Grove to water on the 31st. Since we can't meet that demand, no watering will be allowed on the 31st day of the month. A rain barrel rebate program is available, with a $20 credit on the water utility bill. The details for that are on the City website. As the water ban starts to be lifted, it's really important that residents continue to think water conservation strategies; e.g., only water lawns twice per week to help conserve water during this time. Mark Rolfs with Stantec was present and explained the three options for the current watering ban: 1) Move to an odd-even sprinkling ban once the interim Well 10 is online. The proposed date for that is August 1. 2) Wait approximately three more weeks until the Well 3 facility is online. 3) Do not remove the current sprinkling ban. The current demands are far less than our ability to supply; it's a very conservative option and we do not feel it's viable given the construction of the temporary water treatment plants. Of the three options, the staff is more in favor of option one. Engineer Levitt stated the other section of the Ordinance they'd like to modify is regarding penalties for violations. Currently, it's a $50 fine for not adhering to the watering ban, and we are proposing to change the Ordinance to a misdemeanor offense, punishable by fines, imprisonment, or both. Engineer Levitt asked Captain Pete Koerner more about the enforcement plan and to answer any questions. Captain Koerner stated that there had been much education given to residents by both Police and Public Works staff. After a few weeks, officers started with written warnings, which were documented; since that time, there have not been any repeat offenders. Moving forward, we'll continue to be aggressive. It will be a difficult transition; we know the City has a good communications plan, but when people hear the ban's been lifted and we'll transition to odd-even watering days, it will be difficult. Officers will document any violations, and a second offense will be cause for issuance of a citation. City Council Meeting Minutes July 19, 2017 Page 11 Engineer Levitt stated Administrator Stevens would review the City's communication plan. Administrator Stevens stated they had a strong plan to get the information out to the public: A written statement on social media, the City's website will be updated tomorrow morning, and on August 15, the utility bill information will be updated with watering information and information on the Splash Pad hours. All social media channels, including Facebook and Twitter, will be used. The ban will be lifted August 1, but watering will be on odd-even days, based on the address. Next Door is a social media site that 31 Cottage Grove neighborhoods subscribe to, and the information will go out to them also. Once again, there will be a direct mailing to residents and businesses in the community; those should arrive in homes anytime between July 26 and July 28. All City staff will be aware. TV carousels at the Ice Arena will update residents also. Mayor Bailey will do weekly updates through the South Washington County Bulletin, with short videos on the City's website and on social media. On August 1, the watering ban will be lifted; it will return to odd-even watering days and there will be no watering allowed between 12:00 p.m.-4:00 p.m. The City's also required to post a Legal Notice, which will be done. They're hoping residents won't water more than twice a week. Engineer Levitt stated they're looking to the Council to pass Ordinance 986 regarding water conservation penalties and amending the watering ban to no watering on the 31st of the month. Mayor Bailey thanked all City staff and partners to get the two water treatment facilities up and running to get as much water capacity so we can stop the watering ban and get back to normal processes and make sure the City water is safe. Mayor Bailey stated the Splash Pad will be reopened. Administrator Stevens stated the Splash Pad hours will be from 10:00 a.m. to 6:00 p.m., rather than having extended hours. The City parks have sprinkling systems; the watering will happen on the day relevant to the actual park address, odd or even, twice a week. Mayor Bailey stated Captain Koerner had reviewed the penalty process; it will be one warning and then citizens will receive a citation. There will be no watering allowed between 12:00 p.m. and 4:00 p.m. every day, and doing so will also be a violation Council Member Dennis stated this had been a difficult time for everybody; he wanted to thank the community for being supportive. He encouraged citizens to not water inappropriately, as they don't want to fine residents. Mayor Bailey stated he was impressed with options citizens had thought of to conserve water; he hoped they would continue to do so. Council Member Thiede stated regarding sprinkling systems, oftentimes it will be raining and sprinklers will be going. There is technology available that ties into your sprinkler system so if it's raining, your sprinkler system won't come on. There's a way to check the moisture in the soil, a water sensor, to either run your sprinkler system or not. He encouraged residents to check out those options. City Council Meeting Minutes July 19, 2017 Page 12 Motion by Council Member Johnson to pass Ordinance 986 amending City Code Title 8, Chapter 1, regarding water conservation penalties, second by Council Member Thiede. Motion carried: 5-0. Motion by Council Member Dennis to Adopt Resolution 2017-097 amending the watering ban, second by Council Member Mills. Council Member Thiede confirmed that removed the watering ban on August 1. Motion carried: 5-0. 12. COUNCIL COMMENTS AND REQUESTS Council Member Mills requested that the City look at the ideas regarding sustainable yards and look to make sure City Ordinances fit in with some of that and if there were ways businesses and residents could get creative with some of their yards. Council Member Mills stated she's heard comments from residents asking if she's glad she's on the City Council now that there are issues with the watering ban; she stated she's happy to serve our community, and this problem solving is part of the job. She stated she's committed to seeing this through, asking hard questions, and making sure residents have water that meets standards. She felt it was extremely important and she felt Cottage Grove has great staff in place and the City's headed in the right direction. Council Member Dennis stated he had a resident reach out with a concern over some grass at an intersection; he had contacted Public Works Director Burshten, it was taken care of very quickly, and the resident was very appreciative of the work that was done. Council Member Johnson stated he had the opportunity to do a ride along with Officer Rydeen last week; he wanted to thank Captain Koerner for organizing that. He stated during that ride along he got to see many things regarding other agencies, City, County, and State, who coordinated their efforts and worked so smoothly together. He got to see the dedication of all involved to make sure that the residents of the City of Cottage Grove were protected. He saw people locked out of their cars, an accident with a child, who needed attention, somebody stuck on the side of the road, and a 21 st birthday celebration for one of the officers. He saw Officer Rydeen's dedication and desire to make things better and how much he enjoyed being on the police force and talking with other people. Council Member Johnson stated it really made him proud of the police force in Cottage Grove and felt they deserved recognition; we are well served in the City of Cottage Grove. Council Member Johnson stated he stopped into the old City Hall, the temporary location of the Fire Department. He stated it was a unique situation for them working out of that site, and he was happy to see how they are making it work and they're making sure their response times are as quick as possible. He wanted the residents in Cottage Grove to know the Fire Department is still on top of things and they're there to help out everybody. City Council Meeting Minutes July 19, 2017 Page 13 Mayor Bailey stated the Inclusive Playground at Woodridge Park is being built. On July 29, morning and afternoon, they're looking for volunteers to come help with some of the work out there. They need 100 volunteers; more information can be obtained from the Parks and Recreation Department or you can sign up online. There are links on the City's website and on Facebook. On August 1, the Night to Unite gatherings will take place. He hoped to see many people and hoped the Council Members would be out and about at parties as well. Mayor Bailey stated there was an article in the Pioneer Press this morning regarding 3M refusing to pay the latest clean-up bill from the State. He knew people had questions regarding what that meant, as the two filtration systems currently being constructed were very expensive; one was $2.5 million and the other one is about $1.5 million. The point is there's an agreement between the City of Cottage Grove and the State of Minnesota; the Consent Decree is specifically between 3M and the State of Minnesota. Cottage Grove has been guaranteed through our agreement with the State of Minnesota that any of the money being expounded in creating the filtration systems, etc. is being covered by the State of Minnesota. It will be the State's responsibility to recover the costs from the appropriate parties. Mayor Bailey thanked City staff for making sure this process is going as smoothly as it is. There was a 3M attorney who had said that the Cottage Grove water contamination could have come from a fire training facility in the City of Cottage Grove. The City of Cottage Grove does not have a fire training facility; that statement is completely false, so he said that they need to get their facts straight. Director Woolery stated the only place the Cottage Grove Fire Department does its training is generally with the refinery. The water is coming from the Woodbury border area where the 3M landfills are, it flows through Cottage Grove, and then down to the Mississippi River. Mayor Bailey stated the City's looking at a permanent solution for the water issue, and at some point in time Council will be discussing with City staff what options we have to make sure the residents of Cottage Grove do not have to pay for damages of something they did not cause. He wanted to thank the public for their support during this process and noted the Council is working diligently to make sure everything gets done well. 13. WORKSHOPS — OPEN TO PUBLIC — CONFERENCE ROOM A. River Oaks 2nd Quarter Report Parks and Recreation Director Zac Dockter stated regarding the golf course, maintenance has been steady and they're proud of its appearance. Golf is down about 9% right now, but there was no golf in March, which hurt revenue as for the last four or five years, they've had anywhere from $4,000 to $10,000 in golf revenue; the good news is there are some other events which they've used to try to offset that. July is off to a great start; they think they'll be profitable at year end. City Council Meeting Minutes July 19, 2017 Page 14 Regarding banquets and events, we continue to have some challenges meeting the financial targets. Staff's recommending hiring of a new Food and Beverage Manager as soon as possible to lead the operation. Recommended changes to the overall business plan are requested. It's been difficult trying to get dining customers from the general public. While there are 30,000 golfer visits every year, that's a market that could continue to grow with a different marketing plan. The Banquet Event Center has had some setbacks in the past year; they're hoping to revitalize that and expand on that significantly, as that type of facility isn't being provided elsewhere. Catering to the golfers is important. We have a great facility for banquets and events; there are high end facilities and low end facilities in Cottage Grove, but none meet the middle of the road banquet facility that can be provided at River Oaks. Director pockter stated he'd take any questions. Mayor Bailey stated when looking at the operational performance, he can see that's dealing with The Eagles; he wondered if there is a way to determine how much we're truly down in the banquet facility business. He wondered how poorly it had fared year after year. Director pockter stated he hadn't broken down the Banquet Event Center's costs and revenues against previous years; however, a safe estimate would be a decline of about 30% at this point. Council Member Johnson asked how much we charge for the Banquet Event Center; Director pockter advised it's between $300 and $800, depending on the event, and there's always been a rental fee structure for the Banquet Event Center. Mayor Bailey stated under the previous management, there were events where the rental fees were waived. Council Member Dennis stated previously there had been freebies, including free food; Council Member Johnson asked if the revenue was down because those freebies are gone. Council Member Dennis stated the room charge was $500, but they'd tried to figure out a balance; there were discounts of$250 for schools and charitable groups. Now they might have lost bookings because some don't want to pay the room charge; had there been a stable structure for room charges at the beginning, we wouldn't be facing that difficulty. Administrator Stevens stated the banquet menus have been revamped to offer some lower-cost options to try to meet the middle ground. Director pockter stated some people come with a set price per person in mind, which helps them determine which foods will be available to them. Council Member Johnson asked if the rental price was determined by food cost, number of ineals, etc. He asked if there was a known set price so we'd be sure to get our money back for an event; Director pockter confirmed that was the case. Council Member Thiede stated we needed to figure out how to make it a viable business; perhaps in its current state, we can't, but then asked what should be done to make it viable. Director pockter and Administrator Stevens stated a shift to more City Council Meeting Minutes July 19, 2017 Page 15 special events, like the Fish Fry, have been successful in getting people in the door. Starting a brunch would possibly bring in $50,000. Council Member Johnson asked how soon the monthly financial data is available; Director pockter stated that data is usually available by the middle of the next month. Director pockter stated he doesn't use that data but instead uses the sales software report that's generated every two weeks. We just need to increase sales across the board. Administrator Stevens stated there's a need to focus some of our effort on the banquet side and increase the revenue there. Council Member Johnson wanted to know how the numbers compare to what we were hoping for; Director pockter stated the numbers aren't even close, which is why we need to change the focus of the business to focus on areas we think will be successful. Council Member Johnson stated decisions made here can be based on how off the numbers are 10% or 20% would be a different decision than if we're missing by 50%. Director pockter stated in May and June, two months, they sold a total of 176 appetizers, a total of 3,340 dinners and lunches, and a total of 23 desserts. Sales need to be driven, as they're not even close to where we'd expected. Director pockter stated there'd been efforts made to increase sales, but at this point there doesn't seem to be a response from the community. Council Member Johnson stated there was only one month where expectations were exceeded, which was March with the Fish Fry meals. Director pockter stated the one overall winner was the alcoholic beverages; Administrator Stevens stated the changes Council Member Dennis made to the beverage menu were certainly good. Council Member Thiede stated they were proposing to hire a Food and Beverage Manager, which he felt was really an Events Manager. He read the job description provided and stated his opinion was that's probably a type of person that we need and who is focused on the operation and willing to take hold of it to make this at least a break-even operation. Council Member Thiede felt the new person would need to assess the situation, what they believed was possible, and measures that needed to be taken to achieve the goals. Director pockter stated he agreed. Council Member Thiede felt it was necessary to hire this person. Council Member Dennis stated the previous manager had left in January; he wanted to know how they'd functioned from that time to July and not realize that we probably should have a trained professional in that position. Administrator Stevens stated that honestly they were trying to manage expenses and felt it could be done with some interim management to get a better handle on where operations were. They now realize they really do need to have that full-time position that's dedicated to the venue and making that their only priority for the City. City Council Meeting Minutes July 19, 2017 Page 16 Council Member Dennis stated that previous to the City Council getting involved, the previous City Administrator had total control of the River Oaks Golf Course. There weren't many investments made in the physical or material structure, most notably financially. None of the Council Members want to see any part of the City losing money, any Department; if one is losing money, we have a problem. We wanted to bring a different perspective and expertise to River Oaks. However, we're still losing money, and he didn't feel that was acceptable. His question for staff is to go forward with this, being respectful and honest with one another, if we had the support of senior management to push and help River Oaks Golf Course be successful and see it through. If not, let us know, and we can make whatever decision needs to be made. He stated we don't have to make a fortune; we just have to float the boat, just have it pay for itself. Council Member Dennis stated the three aspects of the business were the golf, the food and beverage restaurant, and the event center. They can be worked together or they can be individual components, but if staff is behind it, then let's make it happen. Administrator Stevens stated they are behind it, but we need to be able to have some staff there and be able to modify the business plan to make it work. We still need to focus on our golfers, so having the lighter, simpler menu for golfers is important. We haven't been successful at attracting the independent diner, who's not attached to the course. They're trying to find special reasons to go to The Eagles Bar & Grill and building the banquet business up. They think that can be successful. Council Member Dennis stated had the menu been refreshed with more substantial meals, steak nights, etc. that probably would have taken off; unfortunately, none of that came to fruition. The brunch program was another idea that never took off. Other businesses are now doing that, including Junction 70, who has a Sunday brunch. Council Member Mills asked if we'd get a quality person that we need to hire as a manager with the pay that we're offering. Administrator Stevens stated they felt very good about the candidates that have been interviewed to date with both their experience and desire to come into a turnaround situation. They've had experiencing managing golf courses and event facilities attached to golf courses; Council Member Mills asked if that included restaurants and she was told it did. Council Member Dennis asked if the Council, as Board of Directors, would have a chance to meet the candidates. Administrator Stevens stated that could be done, although it would delay the hiring process further and we might lose some candidates. Director pockter stated one challenge was that one candidate did not live here; Administrator Stevens stated one was an out-of-state resident. Mayor Bailey asked who the new manager would report to; Administrator Stevens stated he/she would report to Director pockter. This person would have a position City Council Meeting Minutes July 19, 2017 Page 17 similar to the Golf Pro; the Golf Pro, Superintendent, and this new Manager would all report directly to Director pockter. Administrator Stevens stated the candidates had golf/banquet facility experience but not specific restaurant experience. Council Member Johnson stated the issue we're having is with the restaurant; he's asking if the desire is to build up the banquet side so that the restaurant will be a non-issue. Administrator Stevens stated both finalists have managed facilities similar to River Oaks where it's a golf course that has a banquet facility, but it also has a bar and grill that primarily serves golfers but is also open to the general public. Council Member Johnson stated golf usually stops in October and it becomes purely a restaurant and banquet facility at that time. Administrator Stevens stated that's correct, but they need to be open to somebody coming in, advising them the model of being open four or five nights a week in the off season might not be the right model. If enough business can be driven four or five days a week in the off season, that's fabulous. If not, but if we could run special events, the Fish Fry and/or steak dinners on Friday and Saturday evenings, we need to be open to that. Council Member Johnson stated his concern is because the numbers are so far off if we're even being realistic, especially with the size of the building, only 64 seats. Now, we're thinking of adding another expense to raise sales, and we're approximately off by 50% to 60% already. Council Member Johnson stated he just didn't see the end game. Council Member Thiede stated when it first opened, the place was packed, and you had to wait to be seated. He felt the focus had to be on the events and how to find different things to be able to utilize the assets that we have at the River Oaks Golf Course. He felt a new manager who could focus on that and was good at that sort of thing, to see what they suggest. Council Member Thiede felt it might take a year to see if we could at least break even. Council Member Johnson asked if they had experience turning places around; he was advised one of the candidates did. He felt that was critical. He was asking if the candidates were being told how many events they would need to book per month, how many bodies needed to be in the chairs, etc.; he asked if they had those numbers to present to the candidates. Council Member Thiede stated we wanted them to give us those numbers; the only thing we want them to do is make it break even. Director pockter stated they're giving a footprint to the new leader, but they're going to have to guide the ship. The key is profitability, so the new manager will be told he/she has to control costs, control banquet event costs, manage staffing costs; they'll be given those guidelines to increase banquet revenue by 60% over three years, etc. Golfers can help drive the restaurant revenue as well, if it's done correctly. Council Member Johnson asked if the interviewees had experience in increasing business wherever they worked; Director pockter and Administrator Stevens stated that was correct. Six people were initially interviewed; the finalists have the most relevant experience of managing a facility that is attached to a golf course so they understand City Council Meeting Minutes July 19, 2017 Page 18 how golf and food have to operate together when attached in the way that we are. They also need to manage the Event Center so need to know what's needed to do so. They both have experience in doing that and managing the staff underneath them. Council Member Johnson asked if the new manager reaches the goals outlined, then River Oaks Golf Course will break even; he was advised that is correct. Administrator Stevens stated they wanted to see that over 2018, 2019, and 2020, a three-year plan. Director pockter stated food and beverage and golf go hand in hand; it's a great overall facility but it's because we provide service on all those levels, and they need to work together. Mayor Bailey felt the goal is to keep a viable recreation destination open. There was a point in time about possibly closing down the Ice Arena because it wasn't making any money; it was a strain on the budget, etc. Instead, it was decided to invest money into expanding the Ice Arena and upgrading it. Now, it's a profitable Ice Arena. Mayor Bailey stated he's willing to step back and let the new manager somewhat steer the ship, knowing they've got to hit these numbers. The only other option would be to get someone else to come in and manage it, but outsourcing something like that generally doesn't work. The other alternative would be to close down the golf course; it could not be sold because it's not viable to be sold to somebody else. Administrator Stevens stated the City also doesn't own all of the land. Mayor Bailey stated that there was initially resistance to changing the alcohol selection, but that went forward and was successful. Some things aren't as successful, but we're learning from those. Council Member Dennis commented that we're trying, as opposed to past years. Council Member Johnson stated there were other avenues to explore, but he felt there were still too many unknowns. He's concerned that we're turning this operation to someone we've never even had the opportunity to talk to. The financial numbers concern him so he's not comfortable with hiring at this point. Council Member Thiede asked what the salary range would be for the new manager; Administrator Stevens stated the starting range is $60,000 to $70,000. Council Member Thiede asked if we should take a vote or make a motion. He commented to Council Member Mills that she hadn't said much. She was concerned about who would be hired, where we were with the numbers, and she'd had some previous conversations on this. She thinks there's support for this position; River Oaks Golf Course needs to do something or it may end up being closed, and she didn't think that's where we want to go. If this person can do events and bring good staffing in, that's what it needs. She was in favor of moving forward with that. City Council Meeting Minutes July 19, 2017 Page 19 Council Member Thiede felt maybe after the first three months, the manager could meet with us and give us a report on what they feel the potential is and what could be done. Mayor Bailey concurred and requested that the City Council be kept advised on a more frequent basis so we get a feel for how things are going. Director pockter asked if they should continue with the quarterly updates; Mayor Bailey stated that yes, absolutely, he'd like to have those. Council Member Johnson asked if quarterly updates were enough; Mayor Bailey felt they could have monthly updates if requested. He just wanted to be able to give the new person some time to do some of the work, but he wants to see some improvement with costs of products, working on menus, advertising, etc. so we need to let them get their feet wet. Mayor Bailey asked if Administrator Stevens needed a motion by the Council; she stated she didn't feel that she did. Mayor Bailey confirmed she just wanted a consensus by the Council and she affirmed that. Motion by Council Member Thiede to proceed with hiring of an Events and Operations Manager, second by Council Member Dennis. Motion carried: 4-1 (Nay by Council Member Johnson). 14. WORKSHOPS — CLOSED TO PUBLIC — None. 15. ADJOURNMENT Motion by Council Member Dennis, second by Council Member Thiede, to adjourn the meeting at 9:53 p.m. Motion carried: 5-0. Minutes prepared by Judy Graf and reviewed by Joe Fischbach, HR Manager/City Clerk.