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HomeMy WebLinkAboutMinutes i� ��tJV� �ri°t � y � ............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... ���� �ri e ar�d PC�� t MINUTES COTTAGE GROVE CITY COUNCIL November 1, 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 November 1, 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; Les Burshten, Public Works Director; Zac Dockter, Parks and Recreation Director; Joe Fischbach/HR Manager/City Clerk; Jennifer Levitt, Community Development Director/City Engineer; Robin Roland, Finance Director; Craig Woolery, Director of Public Safety; Greg Rinzel, 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 Motion by Council Member Mills to adopt the agenda; second by Council Member Thiede. Motion carried: 5-0. 6. PRESENTATIONS — None. 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 November 1, 2017 Page 2 7. CONSENT AGENDA A. Approve the October 18, 2017 City Council Special Meeting Minutes. B. Approve the October 18, 2017 City Council Regular Meeting Minutes. C. Accept and place on file the minutes of the August 28, 2017, Planning Commission Meeting. D. Adopt Resolution 2017-142 forgiving the $2,000,000 inter-fund loan from the Closed Debt Fund and the $1,500,000 inter-fund loan from the Closed Construction Fund, which partially funded the Public Safety/City Hall construction project in 2011. E. Adopt Resolution 2017-147 proclaiming Saturday, November 25, 2017, as Shop Local and Small Business Saturday in the City of Cottage Grove. F. Approve the 2018-2020 Sergeants' labor contracts. G. Adopt Resolution 2017-148 authorizing the preparation of a feasibility report for the Ravine Parkway Project from Hinton Avenue South (CSAH 13) to Keats Avenue South (CSAH 19). H. Adopt Resolution 2017-150 authorizing the application for funds through the Local Road Improvement Program for the 2018 Ravine Parkway Project. I. Approve the amended Maintenance Agreement between Washington County and the City of Cottage Grove for maintenance of the roundabout at the intersection of County State Aid Highway No. 19 and East Point Douglas Road South. J. Receive River Oaks/Eagles 3rd Quarter Report. Council Member Dennis wished to pull Items E and J for further comments and/or discussion. Council Member Dennis stated he had put together a small list of reasons he felt it was important for us to shop local and support businesses in our community. He read the list aloud: 1) It keeps your favorite businesses around; 2) There are thousands of jobs within Cottage Grove, many attached to service and retail businesses; 3) Businesses in our community help to shoulder the burden of these tax costs by spreading them out; 4) Convenience and value, we can travel shorter distances to get what we need; 5) Help increase our existing business market share. There will be a Shop Local and Small Business Saturday on November 25; he read the proclamation aloud. He urged residents to shop local and support small businesses and merchants on that day and throughout the year. Regarding the River Oaks 3rd Quarter Update, Council Member Dennis stated he felt very good about what they're doing on the golf side of the business. He'd heard positive feedback from golfers in the community regarding the customer service; they've got an excellent grounds crew. The Eagles Bar & Grill and Event Center has hired some more employees, and they're working on Friday and Saturday night dining. He City Council Meeting Minutes November 1, 2017 Page 3 hopes the community will support both of those. Regarding advertising, there are other opportunities available including electronic media, DMC Cards, the local newspaper, etc. He felt to have successful advertising you have to pull from each of those platforms; social media is free, but you're only reaching a certain segment. He suggested perhaps considering looking at other forms of advertising. 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 10/18/2017 through 11/2/2017 in the amount of$1,219,117.51. Motion to approve disbursements by Council Member Dennis; second by Council Member Johnson. Motion carried: 5-0. 9. PUBLIC HEARINGS A. CSAH 19 & East Point Douglas Improvements Project Assessments Public Hearing Staff Recommendation: 1) Conduct the public hearing for the CSAH 19 & East Point Douglas Improvements Project. 2) Approve Resolution 2017- 149 adopting the assessment roll for the CSAH 19 & East Point Douglas Improvements Project. Assistant City Engineer Ryan Burfeind explained the improvements project on CSAH 19 and East Point Douglas Road. There's a new six-leg roundabout on CSAH 19 at the intersection of East Point Douglas Road, which included the on and off ramps to Highway 61. The East Point Douglas Road reconstruction project made it an urban section roadway with curb and gutter, trails, streetlights, and a storm sewer; there were also utility improvements with sewer and water. He showed photographs of the completed improvements. He reviewed the assessment policy, which is a tiered method. 50% of the project costs are allocated to the benefiting properties; 98% of the benefited area is commercial, industrial, or planned as part of the 2030 Comprehensive Plan so the commercial industrial policy was applied. He reviewed assessments paid by Walmart, 3M, LSP Cottage Grove, Xcel Energy, and Hope Glen Farms. He reviewed the work done on East Point Douglas Road. The roundabout cost approximately $2.6 million; Washington County's cost was $1.1 million, and the City's cost was $1.5 million. The total project cost for the East Point Douglas Road reconstruction was $1.68 million. He reviewed the assessment terms, payable within 30 days of adoption without any interest or payable over 15 years, with an interest rate of 1.5% above the bond rate. A $500 minimum partial payment is allowed, and deferrals are available for disability, military, and age 65 or more. City Council Meeting Minutes November 1, 2017 Page 4 The City received formal objection to the assessment from 3M; that was received on October 30, 2017, and copies of that are available. Assistant Engineer Burfeind stated he'd take questions. Council Member Thiede asked him to explain a bit more about the assessment process. He explained the assessments are calculated as part of the feasibility report process; the report was completed by Bolton & Menk, and they did the detailed traffic analysis for the Cottage View area. Mayor Bailey opened the public hearing. As no one wished to address the City Council, Mayor Bailey closed the public hearing. Motion by Council Member Thiede to Approve Resolution 2017-149 adopting the assessment roll for the CSAH 19 & East Point Douglas Road Improvements Project; second by Council Member Dennis. Motion carried: 5-0. 10. BID AWARDS Well No. 12 Pumping Facility Bid Award Staff Recommendation:Adopt Resolution 2017-151 awarding the bid for the Pumping Facility for Well No. 12 to Municipal 8uilders, Inc. in the amount of $1,569,840.00. Community Development Director/City Engineer Jennifer Levitt stated they'd be looking at an award for the second phases of Well No. 12. They're looking at awarding the building of the structure itself and equipment that provides for the pumping of that well. Five companies bid on this project; the engineer's estimate was $1.8 million and our low bid was just over $1.5 million. They're recommending that Municipal Builders, Inc. be awarded the bid. Motion by Council Member Thiede to Adopt Resolution 2017-151, awarding the bid for Pumping Facility for Well No. 12 to Municipal Builders, Inc., in the amount of $1,569,840.00; second by Council Member Johnson. Motion carried: 5-0. 11. REGULAR AGENDA— None. 12. COUNCIL COMMENTS AND REQUESTS Council Member Mills thanked the visitors who came to the Council Meeting tonight; she specifically thanked one young man, who is working on his Arrow Point award. Council Member Dennis stated many people were talking on social media about the building vacancies in town; he wanted to clarify the actual numbers: Overall commercial vacancy rate is 11.5%; 10% office vacancy and 11.9% retail vacancy. There is just City Council Meeting Minutes November 1, 2017 Page 5 enough vacancy right now that we can attract people, which is good; if organizations wanted to move, Cottage Grove has the ability to offer sites. We're working on getting those places filled. He wanted the community to feel better about things due to some of the comments recently made on social media. Cottage Grove is doing better than many other communities. Council Member Dennis confirmed for Council Member Thiede that that includes the former Home Depot site; we're working with the owner on that. Council Member Thiede requested that we ask EBLNS to come before the Council and make a presentation as to why it's taking so long. Council Member Thiede stated he'd like an explanation. Administrator Stevens stated we could certainly make that request. Mayor Bailey stated he'd spoken with the owner on Monday, and they would get him here, before the Council. Council Member Johnson stated on the City website there's a Community Internet Survey from October 15 to November 15. He asked who could explain what that survey entailed. Community Development Director Levitt stated as part of the business retention and expansion program, one concern from businesses was slow Internet speeds. There were also concerns about Internet speeds from their homes not being very fast. They were wondering about competitive pricing, as there are many home- occupation businesses. The goal of the survey is to try to evaluate where things currently are, looking at both businesses and residences. They're wondering if there's a way to get more competitive service and also address some of the Internet speed issues, as those are important for business growth. One of our private utilities made a financial investment in the Business Park to enhance the speed there; they heard what the businesses said and responded. They're just asking residents and businesses to please take time to take the survey and get us the data so we can further that conversation and continue to provide better service. Council Member Johnson stated the At Home Battle Buddies will take place tomorrow, November 2, at the VFW Red Barn; it's a get together for current and former members of the military to get together, talk, play games, etc. Mayor Bailey stated that during the last Council Meeting, a performance review of Administrator Stevens was completed; overall, it was a good review. Mayor Bailey stated on Saturday, November 4, at the St. Paul Park American Legion, there will be a spaghetti dinner fundraiser, which is being hosted by the Holiday Train Committee; the Lions Club, Thrivent Financial, and a variety of different groups will be there and are helping with this event. There will also be a silent auction. 100% of the proceeds go to the Friends in Need Food Shelf. Mayor Bailey stated on November 10 there will be a Veteran's Day event at Park High School. He's previously attended this event, and he encouraged the public to attend and pay respect to the many veterans who will be there. Mayor Bailey stated the River Oaks Event Center will host a Friends Giving on Friday City Council Meeting Minutes November 1, 2017 Page 6 night, November 17; it will be a turkey dinner. You can sign up in advance; if you have a group of eight, you'll receive two bottles of wine for the table. Council Member Johnson asked if the Friends Giving is going to be on a Friday night, if that would override the Fish Fry; Mayor Bailey stated they'd actually be doing both. The Friday Night Fish Fry will continue in the Eagles Bar& Grill, and the Friends Giving will be in the banquet facility. Mayor Bailey stated on Sunday, November 19, Council Members will be bagging groceries at Cub Foods as a fundraiser for the Friends in Need Food Shelf. Free will offerings will be gratefully accepted. 13. WORKSHOPS — OPEN TO PUBLIC — CONFERENCE ROOM A. Park Dedication Fee Ordinance Amendment Staff Recommendation: Discuss proposed Ordinance 987 amending City Code Title 10-4-3 to provide specific dollar values for minimum park dedication cash fees in lieu of park land for residential, commercial, and industrial uses. Parks and Recreation Director Zac Dockter stated the reason this was brought to the Council was they'd had a lot of difficulty with the multi-unit developments (townhomes, apartments, assisted living) that come into town, as developers and residents have their own level of use of parks and/or their ability to use the parks. Cottage Grove needs to blaze our own path; we can look at what other cities do but come up with what we believe is a fair assessment of these fees. Some land that developers donate isn't recreational, usable land so we need to determine how to credit that. Townhomes use less land, but they develop more units so there are more families there. They can't recreate in their own yard so it could be said that they need public space as much as or maybe more than a single-family home does. Apartments are similar to townhomes in that respect. Assisted living residents aren't likely to use parks and recreation spaces as much as single family or multifamily units or townhomes. Mayor Bailey stated Presbyterian Homes has memory care, independent living, and assisted living; he asked how they'd differentiate that, as part is independent and part is assisted living. Director Levitt stated they're already paying $330,000 in park dedication. Mayor Bailey asked how that rate was determined; she responded they used the land value and negotiated a percentage of that. In Dominium, it was hard to use land value prices because there's a section on the commercial side of things; the land value price causes a lot of flux so a lot of cities are using a cost per acre rate. The City needs to define a better way to capture the park dedication fees. Regarding attracting builders, State Statute levels the playing field for all of the cities because we have the right to collect 10% of land; they can either give us cash or give us land. The Comprehensive Plan tells us where we want land to be dedicated and where the parks need to be. If you're adjacent to an area that is designed to be a park, you give us land; if you're not adjacent to a park, then you pay us cash. They need feedback from the City Council Meeting Minutes November 1, 2017 Page 7 Council on multifamily housing. If you want to attract townhomes, should we still consider it as a single-family home or do you want to attract it and lower that rate. Director pockter said those people are large users of parks, so there's a balancing act. Council Member Mills stated regarding quad homes and townhomes, she thought that might need to come down a little bit, but she didn't think it should be divided into four for a quad home. For the most part, many quad homes and townhomes have a smaller family unit, a single person, a couple, and some with families. If we're trying to attract multifamily households, perhaps we consider dropping it to $3,000 or $2,000 per unit. If it's being based off of property, that property size is also smaller. She wondered about duplexes, also. She asked if the NextGen homes were considered single-family homes. If a developer wants to build duplexes, she wondered where those would fall. Director Levitt stated a NextGen home would be a residential, single-family unit. If you were to go down to 60% of a single-family home for a townhome or quad, it would be $2,040. Mayor Bailey felt it was good that they were addressing multifamily housing, but he agreed with Council Member Mills that there should be a difference. He just wanted to ensure that we aren't cutting short the ability to maintain the parks. Council Member Johnson stated with townhomes and quad homes, part of that was to bring in more housing options for Millennials; that market tends to have fewer children so it would make sense to him to bring that cost down to make it more affordable. Council Member Dennis stated the current ordinance was put together by a previous Council, staff, and former City Attorney; what's proposed today can also be changed in the future. He stated he's still bothered by language being taken out that gives anybody who's reading it understanding that the Council is the final authority to have some say on it. The power exists today, but there may be future Councils who don't see that there's really a lot that they can do. Council Member Dennis stated he had a solution to deal with an exception when it came to a really small scenario, "A parcel subdivision of less than three lots may be assessed for land or financial dedication at an amount lower than the prescribed ordinance fee structure at the discretion of the Council." It says that it may happen if we want to utilize the discretion to do that. Council Member Dennis stated he wasn't very happy with what he was seeing here and precedents that would be set. Council Member Dennis asked Administrator Stevens to send the letter he sent her to the other Council Members. We can treat things as individual cases if we want to, and he feels we should because each case has its own merits. City Attorney Korine Land stated there was never any intent to take away the Council's discretion to do what they could do before. She apologized if it was misinterpreted that way; the language that allows the Council to have that discretion is still here. The Council has the discretion to reduce either the land or the dedication fee amounts, pursuant to the chart. The language that the Council can always waive a fee is no longer there; if the intent is to make it abundantly clear that the Council can do that, that process can be added, but it might be an extra step of a process. Attorney Land went on to explain the step and the results of doing so, but that's a step that we could add. The lot splits and fees are City Council Meeting Minutes November 1, 2017 Page 8 given to the applicant; they could be told in the letter if you choose to appeal or want to appeal, submit a written appeal within so many days to the City Clerk, and it will then be taken up by the Council. It puts the burden on the applicant to decide if they think that fee is fair; they can bring it to the Council and explain why they feels it's unfair. Then, the Council would have the discretion to do something with it. The language would need to be inserted on the page if that's the direction the Council wants to go. Administrator Stevens asked if it was with the subdivision or with the development level of the lot. Council Member Dennis stated it was regarding subdivision. Council Member Thiede asked if they could have allowed a variance to put a second house on that particular piece of property, owned by the Moodys, as opposed to calling it a subdivision; Attorney Land stated she didn't think so. Mayor Bailey asked if the Moody property only came before the Council because if was a subdivision; that was affirmed. Council Member Dennis stated these are so few and far between that he couldn't believe it would overwhelm our system. A 50% reduction is allowed, and that hasn't changed. Council Member Thiede asked if the Moodys had scrapped their plans; Director Levitt stated they had not recorded the plat and they have not made a building permit application. Attorney Land stated that language could be inserted for flexibility; Administrator Stevens they could make those changes as they look at the fee reduction. Mayor Bailey confirmed those changes would be made and it would be brought before the Council for final approval. Council Member Johnson asked how much of a difference this would have made for the Moody family. Council Member Dennis stated they walked away from this project because it was too expensive for them with the water line, sewer, etc. Mayor Bailey stated that park land dedication was only a piece of this. Council Member Thiede stated he thought the bill for the Moodys was approximately $32,000 to $35,000, half of which was for stuff that didn't seem reasonable. Council Member Johnson stated the only thing the City would have been able to change would have been the $3,400 park dedication fee; Council Member Dennis stated there were many moving parts that factored into the bottom line. Council Member Dennis stated he wanted that sentence added so that if the Council needed or wanted to make changes, we would have the opportunity to do so. Much discussion ensued amongst Attorney Land, Mayor Bailey, and the Council Members regarding subdivision of properties and potential appeals by property owners. B. Capital Improvements Program (CIP) 2018-2022 Assistant Engineer Ryan Burfeind spoke about the upcoming CIP projects and their total project costs: 2019: The HERO Center/$16 million 2020: Ice Arena refrigerant replacement and roof replacement/$2.5 million City Council Meeting Minutes November 1, 2017 Page 9 2022: Purchase land for new Public Works facility/$1.4 million Council Member Thiede stated the HERO Center wasn't going to cost the City that much but significantly less. Director Roland stated they've done the same thing with all of the projects listed in the CIP. In the CIP, we show total project cost, sources of funding, and the uses of the funding at the bottom. The CIP has been produced this way for years. We always show the total project cost on park projects, road projects, and building projects, and then we show how they're going to be funded. Director Roland stated in some cases, the roundabout at 70th Street and County Road 19, Washington County had money in that project and so did we. We fronted the cost of the project, and Washington County reimbursed us. So, we showed the full cost of the project because it was our cash to begin with. Council Member Thiede suggested a disclaimer should be made on the first page regarding details on project expenses, similar to "Please see the individual project page." Director Roland stated they could do that. 2018 Roadway Utility Projects: -Pavement Management: East Meadow Cliff, south of 80th Street, east of Jamaica Avenue, and Prestige Estates (this project may be delayed). -Kingston Field development by D.R. Horton; East of Jamaica Avenue, North of Rose of Sharon Church. Includes dedication of Ravine Parkway right of way. Mass site grading in the spring and street utilities after that. -With the Ravine Parkway dedication, there's a feasibility report being prepared for Ravine Parkway, on the section from Jamaica Avenue to Keats Avenue. The City has the right of way from the Watershed District and other developments up to this point, and the final piece will complete the right of way for this project. There's another piece of this project from Hinton Avenue to Innsdale Avenue, adjacent to the Calarosa development, that's currently under construction. Total project cost estimate for this project is $7.2 million. We are looking to run this as a Chapter 429 assessment project, so pending assessments will be placed on future development parcels. That will allow us to collect those funds from developers to pay for that project, which is needed to serve their development from a roadway and utility perspective. -Hadley Avenue reconstruction, North of 65th Street to the Woodbury border. This is a development-driven project tied to the Amundson property. The developer has a cost share in this project, and they'll be looking to adjust safety issues along that roadway. Estimated cost: $2 million. Miscellaneous 2018 projects: -Grey Cloud Island bridge repair, down by the river; repair and maintenance. -County Road 19 and Indian Boulevard: Washington County is looking at this from a safety perspective; they want a bypass lane and they want to convert that to a left-hand turn lane. City cost share would only be tied to the right of way. -Well No. 12: $2.1 million; those construction costs would be in 2018. 2019 Safety Projects: City Council Meeting Minutes November 1, 2017 Page 10 -Ravine Parkway, Hinton Avenue to Innsdale Avenue, total project cost $1.9 million. -Hinton Avenue/70th Street Roundabout: It will be a four-leg roundabout to deal with traffic congestion. One leg is the City's, going south on Hinton Avenue. Estimated project costs $2.75 million; of which $750,000 are Cottage Grove costs. 2019 Pavement Management Costs: -A neighborhood North of 90th Street, West of Jamaica Avenue, near Armstrong Elementary. -100th Street, from Ideal Avenue to just West of Hemingway Avenue, near Gardenworld. There's a remaining 50 acres and they'd look to reconstruct this roadway to more of an urban standard. -80th Street Reconstruction from Jamaica Avenue to Keats Avenue: Project cost of$1.9 million. Prestige Estates neighborhood would potentially be tied in with this project. Director Roland stated there will be no assessments for that project; it's all been previously assessed, and the City only assesses once. 2020 Pavement Management Costs: -Jamaica Avenue and East Point Douglas Road: Signal adjustments at that intersection are difficult and with future development of Cottage View, that will create even more traffic. They're looking at installing a roundabout. Right of way dedication will be needed. Total project costs are estimated at $6.6 million. With the additional improvements to parking lots and the road between Carlson Auto and the VFW that hasn't been reconstructed, that would likely be done with this project. Therefore, the total cost will probably be closer to $8 million. Mayor Bailey asked if we could look for State bonding help with this intersection because it's a traffic situation; he asked if that would be economic. Engineer Levitt stated one of the challenges with that is this is a regional component; they're usually more favorable if it's tied to Highway 95 or Highway 61. 2021-2022 Projects: -Harkness Avenue reconstruction, between North and South Hardwood Avenue, will be dependent on development in that area, preliminary estimate just over $3 million. 2021 Pavement Management: -Just across from City Hall, 85th Street; the area North of that was done in 2016. The area South of that is what will be marked for 2021. -Ravine Parkway is once again development driven, west of Jamaica Avenue. If it were developed, construction would cost $1.4 million. -Ravine Parkway, in the Cottage View area, North of improvements that were in the assessment hearing tonight, approximately $8 million to construct Ravine Parkway through that development and then the intersection out to where the Ravine Park entrance road is located; that's a development-driven project. 2022 Pavement Management: City Council Meeting Minutes November 1, 2017 Page 11 -Jamaica Avenue reconstruction from 70th Street, at Rose of Sharon Church, to Military Road, full reconstruction to a full four-lane urban section. Pavement rehab was done in 2016. -80th Street reconstruction from Highway 61 to Ideal Avenue, just over $5 million; that will be the last segment of 80th Street to be completed. -The CSAH 19 overpass, the bridge reconstruction, work on the South side, on the 3M side, and then extension to West Point Douglas Road from Public Works; $22 million. A large portion of that will be Washington County and State funds. A roundabout could be looked at, at that time. Council Member Thiede asked if there'd been any more talk about rerouting 100th Street. Engineer Levitt stated Washington County put money in their CIP to actually look at that route, so 100th and 103rd Street, going down to Grey Cloud Trail from Highway 61. At that time, we'll engage 3M again. Utility Projects: -Stormwater: $250,000, for maintenance on ponds and storm sewer pipe. -Water Utility/Well Maintenance: $70,000, annually. -Water Meter Replacement: $405,000/year; first phase done in 2017, second phase in 2018. -Well No. 12: Discussed earlier, just over $2 million. -East Ravine Water Tower land purchase, near 80th Street, east of Keats Avenue. -Business Park Water Tower, if there was a very high water user in the Business Park. -Sanitary Sewer Fund: Sewer maintenance, $50,000, annually. -West Central Ravine trunk sewer lining is in poor condition, south of 80th Street, planning on replacement in 2019. -Streetlight Fund, $100,000, annually, for improvements. -Jamaica and 95th Street Signal: $250,000, which is also development driven with traffic in that area. The four-way stop is working well now, but that may have to be upgraded. Assistant City Engineer stated that his presentation was done; he stated Director Roland would speak. Director Roland stated Council Member Dennis had approached her before the meeting and said, "There's a lot of money there. Can we do it all?" She stated she replied, "No." But here's how we could do it if we wanted to: She looked exclusively at 2018 and 2019, thinking that if the HERO Center project goes forward, we need $4 million, at a minimum, that Council would have to bond for. So, that takes approximately $4 million out of our 2019 bonding capacity, leaving us with approximately $6 million. If, in 2018, we were to package the two Pavement Management Projects from 2018 and 2019 together, with the Ravine Parkway, the portion of that that's assessable and would not be paid for by the MSA Fund in 2018; would total approximately $5 million. It would free up enough money in 2019 to be able to bond for that $4 million, along with 100th Street, and it would also help us on the back City Council Meeting Minutes November 1, 2017 Page 12 end of the Hadley, North of 65th Street, project. Ultimately, bonding with those special assessments in the 2018-2019 Pavement Management and the Ravine Parkway, our annual City portion of that would be approximately 2% of the current levy. So, the annual amount for debt service would be an additional 2% in order to do all of that. That does not address 2019 when you'd have to add another 2%, approximately, because it's going to be about $300,000 a year for 20 years for the HERO Center, just our portion. That's assuming interest rates of about 3%. The Fed did not raise interest rates today, but they're talking about doing it in December. Early next year, the Fed will look to do that again so we will see an increase in interest rates. The tax bill that's being proposed doesn't talk about eliminating the municipal bond interest, as had previously been discussed, as a tax exempt situation. So, we don't have to worry about that too much at this point. The money can be bonded for; we can figure out a scenario to do it, but it's going to impact the City tax levy by approximately 2% in 2019, which would add 2% to the 2019 money and would add 4% with the HERO Center in 2020 and beyond, and that's on top of any other levying that we would do. Council Member Thiede asked, as a resident, how that 2% tax increase would help him and how it would help Cottage Grove. Those calculations probably haven't been done yet, but it might be good to brainstorm the benefits that the HERO Center will bring to Cottage Grove. Director Roland stated the Ice Arena needs a new refrigeration system, which needs to be replaced in 2020. That's about $2.5 million, so we'll need to find a source of funding for that. If it's not additional revenues from the Ice Arena, it will have to be some sort of financing from the City. As every City in the State that has an Ice Arena is facing this issue, perhaps money can be borrowed from the State; that's just an idea at this point. Without a change in refrigeration, we cannot continue to run the Ice Arena. Then, there's the Community Center. Mayor Bailey asked if they determined they want a Community Center, it's put on a referendum, and it passes, if we could still bond for that, and if the referendum money would just pay for the bond. Director Roland indicated that would be correct; it would be an addition. You have the same situation; you just have a dedicated funding source. It would be a levy, but it's a dedicated source. Mayor Bailey asked if that would affect the debt capacity. Director Roland stated we have a lot of room, and they do not count Special Assessment Bonds, which is the majority of the City's debt. Right now the only thing that's not a Special Assessment Bond are the Abatement Bonds that paid for refinancing the Ice Arena and the $9 million that we took out in CIP debt for the new Central Fire Station. Those two are the only two items that count against our debt limit. Director Roland stated what she's proposing falls outside of that debt limit, so it isn't a concern, but you'll need to be concerned about it regarding the HERO Center also. City Council Meeting Minutes November 1, 2017 Page 13 Mayor Bailey stated Mississippi Dunes is for sale, and there's interest in that for a possible housing area. He asked if a developer shows up and wants to build, how do the costs for water mains, etc. factor into this. Engineer Levitt stated it's a lot like Hadley Avenue, north of 65th Street. The developer is responsible to pay to get that access; they then pay for a base rate of the road replacement. So, the developer is going to bear the cost of the extension of the utilities. Any up costs on the road side for improvements to safety or from a rural section to an urban section would have to be borne by the City. Mayor Bailey asked if we knew any more about the railroad's interest in the bridge on 103rd Street. Engineer Levitt stated the railroad's not in a position right now to expand that bridge; so, if we chose to do it, the total cost would be paid by the City to expand the bridge and widen it. Director Roland stated all of this data regarding the CIP will be put together in a draft document, which includes a narrative, with all of the individual fund information, and how it financially impacts each of the individual funds, and that will go to the Planning Commission at their December meeting. The Council will have the final CIP for review in early January, 2018. 14. WORKSHOPS — CLOSED TO PUBLIC — None. 15. ADJOURNMENT Motion by Council Member Dennis, second by Council Member Mills, to adjourn the meeting at 9:03 p.m. Motion carried: 5-0. Minutes prepared by Judy Graf and reviewed by Joe Fischbach, HR Manager/City Clerk.