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HomeMy WebLinkAboutMinutes i� ��tJV� �ri°t � y � ............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... ���� �ri e ar�d PC�� t MINUTES COTTAGE GROVE CITY COUNCIL September 20, 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 September 20, 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; John Burbank, Senior Planner; Les Burshten, Public Works Director; Joe Fischbach, HR Manager/City Clerk; Jennifer Levitt, Community Development Director/City Engineer; Sharon Madsen, Communications Coordinator; Robin Roland, Finance Director; Craig Woolery, Director of Public Safety; Becky Ahlvin, Management Assistant. 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 Motion by Council Member Thiede to adopt the agenda; second by Council Member Mills. Motion carried: 5-0. 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 20, 2017 Page 2 6. PRESENTATIONS A. My Future Cottage Grove Report Staff Recommendation: Accept the My Future Cottage Grove Report. Rebecca Ryan, Next Generation Consulting, stated they'd asked the residents what they'd hoped for the future of Cottage Grove. The My Future Cottage Grove Task Force members were present, and she acknowledged them and thanked them for their work. She reviewed the methods used to obtain responses, including social media. They looked at what residents wanted and what the future trends would be. She reviewed the seven recommendations made: 1) Get a Task Force established to work on the Community Center; 2) Consider how Cottage Grove can make its diversity more obvious; 3) Settler's Island renovation; 4) An increase in rental housing and more housing options for seniors; 5) Pedestrian safety and connectivity between parks and also from neighborhoods to parks; 6) More digital engagement with citizens; 7) Restaurants, retail, and housing are the top three wishes by citizens; they recommend engaging citizens to help attract and develop local retail and restaurants. She asked if anyone had questions about the process. Council Member Thiede wanted to thank everyone who was involved in the process, especially the Task Force Members, as it would help the Council provide better service and make better decisions for the City. Mayor Bailey thanked Ms. Ryan for her work in helping the Council understand what the future holds and for giving them ideas to make things happen in the City. Motion by Council Member Dennis to accept the My Future Cottage Grove report; second by Council Member Johnson. Motion carried: 5-0. 7. CONSENT AGENDA A. Approve the September 6, 2017 City Council Regular Meeting Minutes. B. Authorize Ice Arena Staff to sell a surplus Advance Razor 20BT Floor Scrubber on eBay or Cranky Ape. C. 1. Adopt Resolution 2017-125 declaring costs to be assessed for abating tall weeds on private property. 2. Adopt Resolution 2017-126 calling for a public hearing on the proposed assessments. D. 1. Adopt Resolution 2017-123 declaring costs to be assessed for abating hazardous property conditions. 2. Adopt Resolution 2017-124 calling for a public hearing on the proposed assessments. E. Authorize issuance of a single occasion gambling permit to the St. Paul Park-Newport Lions to conduct bingo at the Friends In Need Oktoberfest event at Hope Glen Farm on October 15, 2017. F. Authorize issuance of a temporary 3.2% liquor license to the Cottage Grove Lions for the Friends in Need Oktoberfest event at Hope Glen Farm on October 15, 2017. City Council Meeting Minutes September 20, 2017 Page 3 G. Receive and place on file the approved minutes for the Arts Commission meeting on July 11, 2017. H. Adopt Resolution 2017-127 approving the final payment on 80th Street Quadrant project in the amount of$40,325.96 to Pember Companies, Inc. I. Approve the deed restriction on the Inclusive Playground area in Woodridge Park where funds from Grant LW27-01406 were used. J. CSAH 19 & East Point Douglas Improvements Project - Adopt Resolution 2017-131 declaring the costs to be assessed and Resolution 2017-132 calling for a public hearing to be held on October 18, 2017. K. Adopt Resolution 2017-134 approving an interim conditional use permit to install a 750-kilowatt roof-mounted community solar garden on the roof of Werner Electric's warehouse building at 7450-95th Street South. L. Authorize Kingston Park court replacement project to be completed in 2017. Motion by Council Member Thiede to approve the Consent Agenda, second by Council Member Mills. Motion carried: 5-0. 8. APPROVE DISBURSEMENTS A. Approve payments for the period of 9/5/2017-9/14/2017 in the amount of $676,060.62. Motion to approve disbursements by Council Member Dennis, second by Council Member Thiede. Motion carried: 5-0. 9. PUBLIC HEARINGS A. Vacation and Discontinuance of Utility and Drainage Easement in Grove Plaza 3rd Addition Staff Recommendation: 1. Hold the public hearing to vacate and discontinue the existing 20-foot wide drainage and utility easement as legally described in Exhibit A of the draft resolution vacating and discontinuing the existing easement; and 2. Adopt Resolution 2017-128 that vacates and discontinues the existing 20-foot wide drainage and utility easement described in Exhibit A of the draft resolution vacating and discontinuing the existing easement; and 3. Approve the Permanent Easement for Drainage and Utilities Over a Portion of Lot 3, Block 1, Grove Plaza 3rd Addition; and 4. Approve the Notice of Completion of Vacation documents, which authorizes the City Clerk to present said document to the Washington County Auditor regarding the completion of the proceedings herein. Community Development Director/City Engineer Levitt stated this relates to the former Home Depot site, where we need to vacate a utility and drainage easement and ensure City Council Meeting Minutes September 20, 2017 Page 4 that it's over the existing water main on that site, in order for that site to continue to be developed. Mayor Bailey opened the public hearing; as no one wished to speak on this item, Mayor Bailey closed the public hearing. Motion by Council Member Thiede to Adopt Resolution 2017-128 and approve the Permanent Easement for drainage and utilities over a portion of Lot 3, Block 1, Grove Plaza 3rd Addition, and approve the Notice of Completion of Vacation documents, which authorizes the City Clerk to present said document to the Washington County Auditor regarding the completion of the proceedings herein; second by Council Member Mills. Motion carried: 5-0. B. Lot Split and Easement Vacation — 6450 Preserve Pass South Staff Recommendation: 1. Hold the public hearing on the partial vacation of the Drainage and Utility Easement over Lots 24 and 25, Block 3, Homestead at Highland Hills. 2. Adopt Resolution 2017-129 approving the drainage and utility easement vacation and Notice of Vacation. 3. Adopt Resolution 2017-130 approving a minor subdivision subdividing a 3.129-acre parcel of land into two parcels of 1.5 and 1.629 acres, respectively. Engineer Levitt stated the parcel is located north of 65th Street and west of Hadley Avenue and is zoned R2. In 2008, the owner chose to take Lot 24 and Lot 25 and combine them into one parcel; the intent was to build on Lot 24 and maintain the area on Lot 25 for open space. Since that time, they would now like to make that lot split come back together and develop Lot 24 and Lot 25. However, with some of the rolling topography challenges, there were adjustments made to the lot lines to enable more appropriate building pads and facilitate successful access to each parcel. In 2014, the owners also requested the extension of water and sewer to the lot where they proposed to build. The public hearing will vacate the easement and new easements will then be established over the revised lot lines and adjustments to ensure property offsets of the property lines. Mayor Bailey opened the public hearing; as no one wished to speak on this item, Mayor Bailey closed the public hearing. Motion by Council Member Johnson to Adopt Resolution 2017-129 approving the drainage and utility easement vacation and Notice of Vacation; second by Council Member Thiede. Motion carried: 5-0. Motion by Council Member Mills to Adopt Resolution 2017-130 approving a minor subdivision subdividing a 3.129-acre parcel of land into two parcels of 1.5 and 1.629 acres respectively; second by Council Member Dennis. Motion carried: 5-0. City Council Meeting Minutes September 20, 2017 Page 5 10. BID AWARDS — None. 11. REGULAR AGENDA A. Minor Subdivision - 8508 Keats Avenue South Staff Recommendation:Adopt Resolution 2017-133 approving a minor subdivision to subdivide a five-acre parcel of land at 8508 Keats Avenue South into two 2.5-acre parcels. City Engineer Levitt stated the owner has made a motion for a minor subdivision at 85th Street and County Road 19; he wants to subdivide the existing 5 acres into two 2.5 acres, Parcel A and Parcel B. There is currently a home on Parcel B, and there's a desire to build a new home on Parcel A. The zoning is low-density residential. She reviewed the easements and public right of way and they'd be securing 33 feet on 85th Street to make it consistent with other plats. Washington County has requested that the City of Cottage Grove obtain 92 feet of right of way that's necessary to facilitate their future ultimate design of County Road 19. There is an 18-inch water main on 85th Street; water service has been extended to Parcel A. A future extension of the sanitary sewer will need to be constructed to provide service. This property is within the MUSA area and public utilities are available to service the new lot. The total fees and area charges for both Parcels A and B will be $36,000, which will not be collected until a building permit is obtained for Parcel A; Parcel B charges will be deferred until the parcel is redeveloped or the house is removed and another new structure is built. The Applicant was provided with two options regarding the charges. The address of the new lot would be 9855-85th Street South. Mayor Bailey asked the Applicant, Gary Moody, if he wished to speak. Mr. Moody stated the division of the parcels is an intrafamily split. He's owned the property since 1978 and wants to pass it on to his children. He had a concern regarding the costs and the land involved. The property being released to the City is about 1.5 acres, or 30% of the property, and he's not receiving any money in return for that. The storm water section is actually 60-feet wide through the valley, yet they're being assessed $6,000, twice, for storm water charges. He thought maybe giving up property for storm water might offset some storm water charges. He'd like to do this, but they don't have to do this; he can rent the property or wait. If the charges could be mitigated a little bit, they could improve the property with another taxpayer and the City would still acquire the land. If the $36,000 could be reduced in half or at least mitigate the storm water fee, they would probably go ahead. If the City's staying with what's in tonight's presentation, he felt they should withdraw their Application. He asked his daughter to speak. Julie Robertson, 7756 Iverson Avenue, Cottage Grove, stated she'd lived in Cottage Grove all of her life; she grew up on the property being discussed. She had planned to be able to build on that property for many years. She felt if the City was going to be taking such a substantial amount of land from someone, that the owner should somehow be reimbursed for the land that's being taken. City Council Meeting Minutes September 20, 2017 Page 6 Council Members, Mr. Moody, Engineer Levitt, and Attorney Land spent a significant amount of time discussing questions posed regarding: 1) Actual costs, both with the developable parcel and the existing residence. The actual square footage of the drainage swale has been deducted, so it does not cause him to incur more costs for area charges but instead it reduces those. The total cost is $36,000, for both parcels. The owners are still obligated to pay the costs to construct the pipe and costs the City incurred for that water service; when the building permit is pulled, they'd need to pay a water connection fee and sanitary sewer connection fee and park dedication. Park dedication is one unit, $3,400. Engineer Levitt stated that the City has not yet sought quotes for the extension of sewer to the property line, so that cost is unknown, and the water main costs have not yet been calculated. Connection of sanitary sewer and water, park dedication, and area charges would be added to the $18,000. 2) Confirmation they wouldn't have to pay the other $18,000 until they tore down the existing home to build a new one or until something actually physically changed on that lot; Engineer Levitt stated a failed well or septic would be a change. Mr. Moody felt redevelopment needed to be clarified; if the well failed and they wanted to hook up to City water, then the $18,000 would need to be paid to connect to the water main. He wanted to get this done, but he felt something needed to be worked on. Engineer Levitt confirmed they'd be required to hook up to City water verus putting in a new well or septic because the property is in the MUSA, and that's the City policy. Engineer Levitt stated it would cost approximately $10,581 to hook up to City water if the well were to fail. 3) If they hooked up with the City water prior to splitting the parcel, then they wouldn't need to pay the additional $18,000 for redevelopment. Engineer Levitt stated if the well was abandoned without the subdivision, the water would be extended to connect, so they would only pay $10,581. When asked if that was an option for them, Engineer Levitt stated she believed the Applicant's objective was to create two buildable parcels and not incur costs on Parcel B with the existing home at this time; she didn't know if that would align, even though there would be potential savings with that. They would be able to have two buildings on that five-acre parcel, but only if it's subdivided. 4) Regarding the storm water facilities charge, Engineer Levitt stated that typically you'd see storm water area charges with any development, platting, or subdivision of a lot. Many times a development will typically have a storm pond, which has high-water elevation. The developer isn't charged any area charges from the high-water level and below; so the land acreage on which they're containing water is not something they're charged for. That same principle is applied to the drainage swale, as it is to any pond in any residential subdivision. 5) The storm water charge is for regional benefits. Various areas in the City are divided into sub-watershed districts. Each of those has different things that the area charges are designed to cover; upsizing of pipes, culverts, ravine stabilization, and additional water treatment rate control. This one might result City Council Meeting Minutes September 20, 2017 Page 7 from stabilization of the ravine or if the pipes get plugged due to debris, so this fee gives the opportunity to help reestablish and maintain that system. 6) Referring to other properties that had been subdivided and their fees, it was asked if that subdivision was to develop for sale of homes or if it was for residents who wanted to live on that property. Engineer Levitt stated when they bought from the developer it included fees for storm water and park dedication. When they acquired the actual parcel, the right of way for 65th Street had already been dedicated for 65th Street and Hadley. Their lot price took those items into consideration. When sanitary sewer and water became available with the 65th Street project, as part of the Timber Ridge VI development, they knew they wanted to make that a homestead for them and didn't want to be on well and septic. Because sewer and water were available, they requested that it be extended. They had to pay the full cost associated with those utility extensions, the area charges, and the connection fees will be collected at the time of building permit. The park dedication had previously been paid by the developer, who had sold those two lots to them. 7) If things didn't change with the current numbers, there's a possibility the Application would possibly be pulled, but that would be up to the property owners after the Council vote to decide what they wanted to do. If we approve the subdivision the way Staff is proposing it, with the fee structures, it's really up to the owners to decide if they want to pursue that. At one point in time there was a plan for a lot split, but it just never got recorded. Engineer Levitt confirmed that and stated that in 1995 the City had approved a lot split for that property and it was not recorded or acted upon; so, at this point, it is null and void. Council Member Dennis stated this was a unique situation; it's not a developer, it's a family. There are various fees, including the park dedication fee of$3,400. State Statute and the City's subdivision ordinance allow the City the ability to take the money; it's allowed but it doesn't say that we have to take it. He stated part of the Council's job is to look at things on an individual basis and weigh the merits of each case individually relative to the greater good that can come out of it. Right now, he doesn't see a lot of greater good coming out of this process. Council Member Dennis stated if this was his property, he wouldn't do it with all of the fees. Council Member Dennis wanted to talk about the right of way the City's looking to take on 85th Street for widening the road; he wanted to understand the need for widening that road. Everything west of the Moody property is 100% completely built out; there's no additional opportunity for population density in that area. On the east side of County Road 19, that's the government side of the City with City Hall, the Washington County building, and the proposed Hero Center. He didn't believe it would be reasonable to expand the road; if it's not expanded, there's no reason we should take 33 feet off the top end of Mr. Moody's property. Regarding the drainage issue, every spring there's a collection of water that forms in the bottom of the ravine from the melting of snow. The current residents have never had a City Council Meeting Minutes September 20, 2017 Page 8 flood situation. With the topography of the land there's a 28-foot difference between high zone and low zone; the second house would be placed on the high zone. He didn't see that being in any imminent area of possible damage from a water leak. He felt we needed to do something to mitigate that. Council Member Dennis asked regarding the fees for connecting the water, if the City made money on that process; Engineer Levitt stated no, it's an actual contract and a service agreement associated with it so there's no money made. Council Member Dennis stated another family off of 70th Street had also come to him; they had connected to the City's water, and their charges were about $19,500. The $18,000 fee is the going rate and there's not a whole lot we can do with that. If they're not looking to develop or bring the water service into the existing parcel, then that could be something that we could delay or defer until such time that they need to do it. They might be setting themselves up to encounter inflation so that's something they needed to think about when making their decision. Council Member Dennis' bottom line is we should do what would be fair and equitable; he was going to vote with his conscience, to do the right thing. He put together a motion and wanted to make that motion at any point for discussion if the Mayor would allow him to do so; Mayor Bailey told him to go ahead and make the motion. Motion by Council Member Dennis to Adopt Resolution 2017-133 approving a minor subdivision to subdivide a five-acre parcel of land at 8508 Keats Avenue South into two 2.5-acre parcels with the following changes: 1) Remove condition 3 on Parcels A and B, which is the public right of way dedication totaling 33 feet along 85th Street; 2) Remove condition 6, Public Drainage and Utility Easement; 3) Waive condition 9, which is the park dedication fee of$3,400; second by Council Member Thiede. Mayor Bailey stated the motion was up for discussion. Once again, much discussion ensued amongst the Council Members, Engineer Levitt, Mr. Moody, and Attorney Land. Mr. Moody was asked if it's the fees that are most concerning to him or the fact that his land is being taken; Mr. Moody stated he wanted it to be equitable, to obtain a fair deal. If Washington County wanted the land later, they'd have to compensate him for it, as opposed to him giving it away. Engineer Levitt stated there were a few things she needed to make sure were very clear in this discussion because a couple of issues were being clouded. Regarding the 92 feet of right of way, Washington County has documented that they are requesting the 92 feet. Because State Statute allows us to collect and acquire this, the City of Cottage Grove will be on the hook 100% for the value of the land in the future when it comes time to construct the road; that's a liability to the City in the future and, as we've seen with other tracts of land, it will most likely go through a process that will cost us more money. It will be a liability and a financial burden to the City if we don't collect it now; that is per Washington County's policy. City Council Meeting Minutes September 20, 2017 Page 9 Engineer Levitt went on to explain the 33 feet needed for the public right of way and the drainage and utility easement: Right now the road already sits in the 33 feet; it's just in an easement, not in an actual platted right of way. So, the City's not taking an additional 33 feet, we're just memorializing it in a permanent public right of way. They're not losing it; we're not encumbering the 33 feet further as it already exists there. Regarding the drainage and utility easement, this is a storm water structure that conveys water from the parcel to the north; it picks up catch basins in the street, and conveys water to the south. Anytime there's water that drains from one parcel to another, we always put in a drainage and utility easement to ensure that if something were to happen, it wouldn't negatively impact the person upstream, so it's a protection. That's why there's a drainage and utility easement. We're putting public water from the roadway into that catch basin, which discharges to the ravine, so it's important that we actually establish that in a drainage and utility easement; that's why we're not penalizing the Applicant for any of the charges related to that dedication. As we've seen and heard, they don't plan on filling the ravine or plan on building in the ravine. When we look at the actual density that they could achieve on this parcel, it's much greater than two lots, which is why in most cases those area charges would be spread over multiple units to lower the cost. When you choose to have a large lot in a MUSA, that's what inflates the cost. Those are some of the issues she wanted the Council to be aware of as they considered the motion. Engineer Levitt stated when a project comes about for road expansion, Washington County has put it in writing and documented it to us, as part of this minor subdivision, that we are requested to collect our State Statute-allowed collection right of way of 92 feet. If we do not, we will be financially liable and responsible for the acquisition of that land sometime in the future. Rates will inflate, so if you don't acquire it today, financially it will cost the City of Cottage Grove considerably more in the future. Council Member Johnson confirmed the homeowner had stated at a later time he could be compensated for that property, so the City would then be the ones compensating him because of what Washington County needs to get; Engineer Levitt confirmed that that was correct. Council Member Thiede asked if Washington County decides to make that into a four- lane road, what happens if Mr. Moody does nothing to his property and Washington County comes through and wants to make the road wider. If the property owner is not proceeding with any plat or subdivision of the parcel and it stays in its five-acre state, as it is today, then the City of Cottage Grove is not liable for that because it would be the responsibility of Washington County. Council Member Thiede asked what Washington County would have to do to get that right of way; Engineer Levitt stated they'd have to purchase it. Council Member Thiede stated with the ravine, the only reason we're making that an easement is to make sure the resident doesn't put a dam in there or build something that impedes the flow of the water; that was confirmed. It's not being taken away, it's just a safeguard. Engineer Levitt stated if there's a large storm and a bunch of trees get knocked down, into the ravine, and that culvert is plugged at discharge, Public Works City Council Meeting Minutes September 20, 2017 Page 10 then has the ability to actually enter onto that and remove that because there's a public easement over that, which gives them the ability to provide the emergency service. Council Member Thiede asked if they didn't make any changes right now, we'd have to ask them if we could take care of it; Engineer Levitt confirmed we'd need to get a right to enter onto the property. Council Member Thiede asked for real costs of cash outlay right now; if they were to subdivide this, it would be just the costs to hook up the sewer and the water. Council Member Thiede asked if anything else had to be paid for right now for Mr. Moody's family to actually do what they wanted to do; Engineer Levitt stated it's just the area charges and connection fees that remain. Council Member Thiede stated we could still take the easements to have the safeguards for Washington County; if we say we'll pay the area charges and actually take those away, essentially we get the easements but then the only thing they'd ultimately have to pay for is to hook up the water and the sewer because that's actual money charged from a third party. Mayor Bailey stated he knew what we were trying to do here; when you start manipulating the fee structure, you're going to set the City up to have every developer and every single lot or multi-lot developer come before us and ask for the same thing. Council Member Thiede stated that's only if it's the exact same situation. Mayor Bailey and Council Member Thiede disagreed on the proposed changes to fees; at that point, Mayor Bailey requested input from City Attorney Korine Land. Attorney Land stated as Engineer Levitt indicated, the 33 feet on 85th Street is already right of way so we're not taking anything more; they just own to the middle of the roadway so we're asking as part of the process that this now be platted right of way. So, then we've deducted it from the area charges. If you choose not to have that dedicated in the plat as part of right of way, then she'd argue it should be added back in so that deduction would go away and they'd be charged the full rate. Same with Keats Avenue; if you choose not to give Washington County its right of way that it's asking for, then you have to add that back in and they no longer get a deduction for that, so you basically increase the cost. So, in a way, they have been compensated for the rights of way that we're taking because we've deducted that from the area charges. That is certainly noteworthy. Secondly, regarding the family member exception question, as indicated, anybody can say they're going to sell it to a family member, and there's no doubt that they would in this case, but anybody could come to you and say that's what they're going to do and then turn around and do something else. She didn't think that could be put in a Resolution, stating you must sell it to, because you'd be putting unreasonable restrictions on somebody's right to do something with their land, which is unconstitutional. Council Member Johnson wanted to clarify if they do not subdivide, they don't lose the property, and they could get compensation from Washington County. If they subdivide, they lose the property with no reimbursement at a later time from Washington County. Engineer Levitt stated that is correct based upon how the City Attorney clarified it; they City Council Meeting Minutes September 20, 2017 Page 11 have been provided with the benefit. Regarding the park dedication, she's not aware of a single time that a new home has not paid a park dedication fee; it's never been done previously. Council Member Johnson asked if there could be delayed or deferred fees so if it actually sells for profit or sells to another person that that fee is payable or there's a longer time to make the payment, as opposed to possible easements for roads. Attorney Land stated if the City chose to do a deferred assessment, as long as Parcel B continues to operate as it's doing today and the well and the septic don't fail, they will not owe anything and there's nothing the City needs to do to memorialize that. Engineer Levitt stated that Condition 8 indicates that any future connections of Parcel B to public utilities will require payment of sanitary sewer, storm water, and water area charges at the time of connection; all associated connection fees will be paid prior to construction. She stated they could add an additional clause there to ensure that it's related to development on Parcel B to make that more clear. Mayor Bailey stated one of the other options was to divide the parcels so they're $18,000 each; he asked if that could still be done with the deferred assessment on Parcel B. Engineer Levitt stated yes, that could be made more clear to ensure that protection. Mayor Bailey asked if nothing occurs on Parcel B for 20 years, the Moody fee would remain at $18,000; he was told that was correct. Julie Robertson stated when looking at the overall plan for County Road 19, and where the 92 feet would fall along the entire Keats Avenue North and South run, that 92 feet actually falls into three different buildings to the north, along three different properties. Her question was if that was something they'd bring up with Washington County, regarding their plans, so if they have to work around the buildings if they'd have to lose the 92 feet in the future or is that something that we're just giving to the City now that Washington County is not actually going to take in the future. Engineer Levitt stated those were the challenges Washington County was going to face in the future as they look to expand the road. They had looked at shifting the 92 feet towards the east side of the road; unfortunately, they were encumbered with some additional easement from the trunk sanitary sewer that runs there. There are other encumbrances on the south side for us to try to shift that 92 feet and reduce the burden on this property. Just as the Applicant has referenced, those are the future challenges that Washington County's going to face in the land acquisition. As long as they're not being platted, and we're not foregoing the acquisition of the land, those financial burdens will primarily fall on Washington County. There were issues with 70th Street in previous projects this year with Washington County. Council Member Thiede asked what the assessment of costs of that right of way would be for Washington County. He wanted to know what the equity was in the right of way. Engineer Levitt stated she wasn't able to give a fairjudgment based on the use of the land and what associated sales are today. Council Member Thiede stated it shouldn't be this complicated. City Council Meeting Minutes September 20, 2017 Page 12 Mayor Bailey stated when talking to Washington County about widening 70th Street even further, there are going to be homeowners who are going to be affected where retaining walls are going to have to be built to widen 70th Street, and the City of Cottage Grove and the citizens are going to have to come up with because of the development. Council Member Thiede stated the easement on Keats is actually taking a chunk out of their existing front yard; he asked if it was following appropriate legal procedure to actually pay them for that strip of land. Attorney Land stated it is not required that they be compensated because the City/County have the authority to widen the roadway as part of a subdivision request, which is what you have in front of you. There is authority written in the State Statute and in the subdivision regulations to do this and to require this dedication of right of way. If you choose to try to compensate and somehow discount the Application, as the Mayor mentioned, you're setting a precedent and then we will be required to do that in the future. Mayor Bailey stated regarding what Washington County will do, the 92 feet will be dedicated to Washington County, and nothing will change there and will remain as it is today. It won't really change until the day comes when Washington County says we're going to put in a project; at that point, they'll have to deal with some of the homes along the way and how they'll make it all work. They might not need the entire 92 feet; they might need less than that. There have been a couple situations were the City's given property back where we didn't need the dedication after everything was all said and done, and we just gave the property back to that homeowner for their use. Our goal isn't to take the 92 feet if they don't need the 92 feet, but that's the number that they're using as a guide. Julie Robertson stated that with the 92 feet, it will come within 14 feet of a house; Mayor Bailey confirmed it looked pretty close but they'd have to negotiate with you on how they could screen or push the road farther away from your house. Engineer Levitt stated the existing area that's already encumbered with an easement; they'd just be memorializing that to the 92 feet over here, so it's equivalent to the 33 feet discussion regarding the easement. Mayor Bailey stated then we're not taking 92 feet, as there's already a certain amount that's there; Engineer Levitt confirmed and stated it goes to the center line of County Road 19. Council Member Dennis asked Mr. Moody to return to the microphone. Council Member Dennis asked Mr. Moody if he'd consider amending the motion, if he could accept the explanation from staff on Condition 1, which talks about the right of way dedication for the 33 feet on the north end of the property, knowing that you're not going to be losing any property there, it seems to be just really a formality. Mr. Moody stated that would be okay. The second condition, public drainage and utility easement, understanding that there is a connection underneath the street where water would flow between different parcels, understanding that by allowing that to happen, that would probably give you, or your daughter, a benefit should there be a situation where that got plugged and then the City could take care of that at no cost to you, if he'd be agreeable to Council Member Dennis pulling that off. Mr. Moody stated yes, he would. Regarding the park dedication fee, there's never been a home in the community that didn't get City Council Meeting Minutes September 20, 2017 Page 13 charged that so it would be difficult for him to remove that fee; Mr. Moody agreed. Council Member Dennis then asked Mayor Bailey to remove those stipulations, #1, #2, and #3, as previously stated, and asked that the Council vote on this. Mr. Moody asked what remained, as it had been a while since the motion was made. Council Member Dennis stated the 92 feet with Washington County was never part of this, just the three things that were just discussed. Mr. Moody stated some sort of financial compensation for the amount of land they're giving up is in order; that's where he thought they differed. If the land easements were going to be left in there, they'd be asking for some financial benefit because of the 1.5 acres. It's a large amount of land they're being asked to give up. Council Member Johnson stated if he understood this correctly, Mr. Moody was not losing any land that wasn't really truly his because of the easement rules, the 33 feet was really City property if you think about it. Mr. Moody stated that easement doesn't exist yet; the current easement is out to 56 feet, and they're being asked to give another 33 feet into that easement, along Keats. Council Member Johnson stated he's asking for compensation for something that Washington County has a right to and it's not the City's to give because if you get compensated, then Washington County comes back and asks for more money from the City when they want to develop that property. Mr. Moody then felt that they should be compensated for the utility easement down in the valley or for the other 33 feet they gave up. Council Member Johnson asked him what other 33 feet he was referring to; Mr. Moody stated it was along 85th Street. Council Member Johnson stated that was never his, as it was an easement. Mr. Moody stated that one option he has is to wait until Washington County comes knocking on his door and not subdivide. He stated they wouldn't have accomplished very much here if they go that route. Council Member Dennis stated just to advise him that what he's heard from the County Commissioner is that you're probably looking at a time period of 15-to-20 years for them to come in and do that. Engineer Levitt stated another tool that's utilized with developers is assessment option of the costs to assess it over a certain amount of time; that would be an option if Mr. Moody would be willing to entertain that for these fees to help lighten the burden of the initial onset of the costs to assist with Parcel A. On Parcel B, Condition 8, the language could be strengthened to ensure that that deferral is better understood and would not encumber it under its current usage. Mayor Bailey asked Mr. Moody if he'd prefer that the two lots be equally split from a fee structure; he stated that was correct. Council Member Thiede rescinded his second on the motion initially made by Council Member Dennis. Council Member Thiede made a motion to actually table this at this point to get some different calculations and then come back when there are some other things worked out; no one seconded that motion. City Council Meeting Minutes September 20, 2017 Page 14 Mayor Bailey asked Council Member Thiede what he was looking to get and Council Member Thiede stated Mr. Moody was looking to reduce the charges and if this was passed tonight, he asked what would happen. He stated they'd either figure it out and come to a lower cost or they'd be out of luck and wouldn't be able to build their other house. Engineer Levitt proposed that under Condition 8, regarding the area charges stipulated for Parcel A, they could have the option of providing them with an assessment option for the area charges and enter into an assessment waiver agreement to help defray the initial burden for the area charges when the building permit was pulled. Council Member Dennis asked how long that agreement could be; Engineer Levitt stated those terms could be worked out. If they directed staff we could work to achieve something. If you wish to add that condition and give some general guidance, that arrangement could be worked out. Mayor Bailey looked for direction from the Council. Council Member Johnson asked if he was looking for a motion with modification or direction that there was some sort of deferment plan; Engineer Levitt stated it would be an assessment deferment. Council Member Johnson stated it would basically be a payment plan, and Engineer Levitt confirmed that. Mayor Bailey stated Parcel B would not have any assessments unless the day came when they needed to hook up to City sewer and water. Mr. Moody stated he'd like to do the uneven assessments on Parcel A and Parcel B. Mayor Bailey explained the terms to Mr. Moody and stated he'd still have to pay the assessment costs on Parcel A, but they would not have to be paid up front when the building permit was pulled. Engineer Levitt stated they could look at 5, 7, or 10 years for payment with interest, but it would reduce the burden when they made the building permit application to not have to pay the entire $23,000 at the time of the building permit so that could lessen the burden at initial construction. Motion by Council Member Dennis to incorporate what we're doing, Adopt Resolution 2017-133 approving a minor subdivision to subdivide a five-acre parcel of land at 8508 Keats Avenue South into two 2.5-acre parcels with the following changes: 1) Direct staff to create an assessment option agreement with the owner to spread the payments out over a mutually agreed upon period of time; 2) Do it at the request of the owner that Parcel A pay a $23,807.25 fee and Parcel B pay a $12,358.52 fee; second by Council Member Mills. Council Member Thiede asked Mr. Moody if that was okay with them; Mr. Moody stated he didn't think it was a very good deal. Motion carried: 4-1 (Nay vote by Council Member Thiede). 12. COUNCIL COMMENTS AND REQUESTS City Council Meeting Minutes September 20, 2017 Page 15 Council Member Mills stated the Paint `N Sip by the Art Commission is sold out, but they're taking a waiting list. If you'd like to join us next Wednesday night and paint, you can get on the waiting list orjust come down and check it out to see what everybody's painting. Council Member Dennis stated there was some fantastic volunteer work performed by the Cottage Grove Firefighters on behalf of the Muscular Dystrophy Association (MDA). Council Member Dennis stated he'd invited Cody Thornberg to join us tonight. Some very important sponsors became longstanding allies of MDA; one of those was the International Association of Firefighters. Our chapter has helped to raise money through the "Fill the Boot" process; fire equipment is brought to various businesses and volunteers ask the public for donations. The three businesses that allowed the fundraising to occur were Walmart, Cub Foods, and Dennis Brothers Liquors. He asked Cody to talk about what they'd done to bring the process together. Firefighter Thornberg stated they'd done the "Fill the Boot" foundation drive for three years, each year increasing their goal: 2015: $2,500, which was surpassed, at $5,000; 2016: $8,000 and they raised almost $9,000; 2017: $10,000 and we made close to $13,000. Each year we're asked to increase our goal, to encourage and promote more help. MDA and the IAF and other organizations throughout the state do whatever they can to keep the fire alive as far as our partnership with MDA. Firefighters have two dates every summer where they bring themselves and apparatus to a camp in Maple Lake. It's a handicapped-accessible camp where fully immobilized kids with a neuromuscular disease can do what other kids do: zip lining, fishing, and playing bocce ball. They're served lunch, we hang out with them, and it's a blast. They do Boot Camp and get ideas on how to "Fill the Boot." This year they used social media to their advantage and used the local businesses to promote those events; he was excited their donation was almost $13,000. Council Member Dennis stated they had bundled a brewery T-shirt and a glass and sold those, with 100% donation going to Fill the Boot/MDA. He presented a $600 check to Firefighter Thornberg on behalf of all of the generous folks who came out and made a donation to help with that cause. Council Member Dennis thanked Firefighter Thornberg for all of the work the Firefighters do to support MDA and to protect Cottage Grove. Council Member Johnson stated tomorrow is the Public Works open house with bulldozers and front loaders; he encouraged the public to attend with their children to see what work they do, how they help the residents of Cottage Grove, and to meet the Public Works staff. Mayor Bailey stated on social media there had been some concerns by a few citizens about their increased water bills and incorrect usage amounts. There were concerns that the City Council had increased the fees. He asked Finance Director Robin Roland and Public Works Director Les Burshten to come in and give some feedback on that. After the PFCs in the water and the watering ban, there are concerns about dirty or City Council Meeting Minutes September 20, 2017 Page 16 cloudy water, what could be causing that, and what, if anything needed to be done. PFCs are odorless and colorless so are not visible in the water. Director Roland stated residents were extremely successful at reducing the amount of water that was consumed during the emergency water ban. Not only has it been out on social media, but City staff has also received phone calls. People then got their bills, which went through the end of August, and they were two and three and four times what they had seen the month before. If, in July, you were billed for 6,000 gallons of usage, that is average, but once you can turn on your irrigation, they average 12 to 15 gallons per minute per zone. If you've got six zones, which most systems have, that's 4,000 gallons in an hour. If 6,000 gallons is your average consumption for a family and you use an irrigation system that has six zones and puts out 4,000 gallons per hour, that's 6.5 hours of watering over a month's time, plus the other 6,000 gallons. That's all it takes for 33,000 gallons of water. She encouraged everyone to take the bill that you received on September 15 and compare it to the same period last year, not last month, but September, 2016. They've found almost exactly the same amount of water. If you don't have last year's bill, we'll get it for you and show you that it is consistent with the same period last year. If you really think your meter is wrong, we can send someone out to check it. We contact Public Works and will have them check the meter to make sure it is reading correctly. The direct line for utility billing is 458-2831. If you don't get an answer and you leave a message and think you've waited enough time, call Director Roland directly at 458-2832, and she'll get you an answer. Director Burshten stated if you think there's something wrong with your bill, call the Utility Department first. They can answer your questions, and if they think there's something wrong with your meter, they will contact Public Works and have us respond to check your meter. Some things that can cause problems are leakage in the home. Just a minor leak in a toilet can be about 200 gallons a day, or 6,000 gallons a month, and those leaks are found frequently in homes. He reviewed the number of work orders they've had; 2016: 109 water quality work orders; water quality is discolored water, water pressure questions, or odor in the water. There were 42 high-use water orders. 2017: To date, 75 water quality work orders and 31 high-use water orders. Everything is investigated and we try to find out what the situation is; in most cases, leaks are found. With discolored water, there is manganese and iron in our water system; it's a naturally-occurring phenomenon we have. Sometimes it accumulates in the water pipes themselves. Until there's a treatment plan way down the line to remove them, that issue will occasionally surface. They suggest running cold water for a while in the lowest part of your basement, or your spigots outside, and it should clear up the water. Every water line in town is flushed twice a year, which will begin next Tuesday, September 26, and it takes three-to-four weeks to accomplish that. Some of the manganese and iron accumulates in the system and gets in the pipes; many other cities do the same thing. If you get some discolored clothing, City Council Meeting Minutes September 20, 2017 Page 17 there's a product we hand out, called RustGo, which works wonderfully. Give Public Works a call; they'd prefer you call and they'll do what they can. It can be water filtration systems that aren't cleaned out or properly maintained, causing an odor problem in the water. Water heaters can cause an odor problem if particles accumulate, and it needs to be flushed with cold water; also, look at the age of the water heater, if it's over ten years old, it's probably time to replace it. Cottage Grove water does not have an odor and it has nothing to do with PFCs. Council Member Johnson stated that they'd had a high water bill and called the City; Public Works came out to check the meter and switched it out. They found while walking through the back yard it was like a swamp. They found one of their faucets was not shutting off and going through the hose. They also found one of their toilets was running, not shutting off, and was constantly filling itself. He confirmed that Public Works will come out if you call. Director Burshten stated when the watering ban was in place, a lot of the wells weren't running so when the watering ban came off, they fired up all the wells, which rattles the system a little bit, and that can cause a little bit of disruption to systems throughout the area, but they haven't found anything unusual other than that. Mayor Bailey stated next Tuesday, 9-26-17, the Inclusive Playground grand opening will take place at Woodridge Park. It's been open already and being used extensively. The playground is for everybody, and the ribbon cutting and dedication will be next Tuesday. He encouraged everybody to come out and check out the beautiful amenity in the City. Mayor Bailey stated the Director of Public Safety, Craig Woolery, informed the City Council this evening that he is going to be retiring. He's worked for the City of Cottage Grove in a variety of different roles for 34 years. He's not leaving until February, 2018, so we can work through the transition. He's grown our Police Department to be one of the best, if not the best, Police Department in the entire State of Minnesota. He will be hard to replace, and the transition process will be discussed at the next Council Meeting. He would like Director Woolery to be involved in choosing his successor. Mayor Bailey stated he knew that the Council really appreciated everything he'd done thus far and look forward to working with him for the next few months. 13. WORKSHOPS — OPEN TO PUBLIC — None. 14. WORKSHOPS — CLOSED TO PUBLIC — CONFERENCE ROOM A. Potential Litigation Staff Recommendation: Close the meeting pursuant to MN State Statute 13D.05, Subdivision 3 (b), attorney-client privilege, State of Minnesota vs. 3M. City Council Meeting Minutes September 20, 2017 Page 18 Motion by Council Member Johnson, second by Council Member Thiede, to close the meeting. Motion by Council Member Thiede, second by Council Member Johnson, to reopen the meeting. 15. ADJOURNMENT Motion by Council Member Thiede, second by Council Member Mills, to adjourn the meeting at 9:45 p.m. Motion carried: 5-0. Minutes prepared by Judy Graf and reviewed by Joe Fischbach, HR Manager/City Clerk.