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MINUTES
COTTAGE GROVE CITY COUNCIL November 15, 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 15, 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; Les Burshten, Public Works Director; Joe Fischbach/HR
Manager/City Clerk; Jennifer Levitt, Community Development Director/City Engineer;
Robin Roland, Finance Director; Craig Woolery, Director of Public Safety.
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.
Jacob Schoenecker, 9370 Hallmark Avenue, stated he was representing Citizens to
Preserve Residential Communities (CPRC); a nonprofit entity formed by concerned
citizens. The new owner of the farmland along the east side of County Road 75,
bordering St. Paul Park and Grey Cloud Island, has plans to turn the farmland into a
central terminal and shipping site for automotive vehicles. This plan will run several
hundred auto transport trailers per day down residential streets between the southern
end of the site and Highway 61. The site itself will be industrial storage for hundreds of
automobiles; it's active 24 hours a day, 7 days a week, loading and unloading from rail
cars to storage and from storage to auto transport trailers. This facility is different from
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 15, 2017
Page 2
the Cottage Grove facility, which is in an industrial park and is not directly placed inside
a residential neighborhood. As neighboring citizens, they're concerned about radical
changes to these areas due to bright lighting, loud noises from the pavement,
environmental concerns, etc. They feel a full environmental impact assessment is
necessary. Increased traffic, especially at 70th Street, accessing Highway 61, will
cause further congestion and noise, as well as safety risks by auto transport trailers that
are meant for highway use.
Similar situations in other communities have led to a reduction in taxable and market
values of homes. A petition already has nearly 1,000 signatures from the collective
communities of St. Paul Park, Grey Cloud Island, and Cottage Grove. He felt together
they can mount a significant force to protect our interests as a community. A law firm
has been contacted; they've developed a plan to amend or eliminate the proposed
development. The approximated cost of a court battle is $100,000 to $250,000. That
cost is beyond the scope of CPRC, which is one of the reasons they're here. They
consider it the Council's responsibility, as our representatives, to protect their mutual
interests. Mr. Schoenecker welcomed all citizens to become involved and participate in
CPRC. He thanked Mayor Bailey for the letter that he had previously written and stated
he'd take questions from the Council.
Council Member Thiede stated unfortunately the decision was in the hands of St. Paul
Park, but they'd stand behind CPRC. Mayor Bailey stated Cottage Grove had
requested a full environmental assessment, as initially the plan for that land was
housing. Also, 70th Street and Highway 61 cannot handle the additional traffic that's
being proposed. He stated there'd been no recent updates received. Mr. Schoenecker
asked Mayor Bailey if he had a working relationship with Mayor Dingle of St. Paul Park;
Mayor Bailey stated he did. He asked Mr. Schoenecker if he'd spoken to her yet; he
stated they had, but her "on the fence" approach has not changed.
As no one else 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
Dennis. Motion carried: 5-0.
6. PRESENTATIONS — None.
7. CONSENT AGENDA
A. Authorize staff to enter into a two-year agreement commencing on
January 1, 2018, with Jimmy's Johnny's, Inc. for portable restroom service
for the City of Cottage Grove.
City Council Meeting Minutes
November 15, 2017
Page 3
B. Pass 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.
C. Approve the Quit Claim Deed with the South Washington County
Watershed District for acquisition of land to allow for construction of
Ravine Parkway.
D. Adopt Resolution 2017-152 approving the site plan review and conditional
use permit to allow approximately 237,778 square feet of storage
condominiums to be located at 7552 West Point Douglas Road South and
variances to City Code Title 11-6-5, Landscaping Requirements; Title 11-
6-13, Architecture; and Title 11-10D-7, Self-Storage Facilities, based on
the findings of fact and subject to conditions in the resolution.
E. Approve Change Order No. 1 in the amount of$249.54 and extend the
completion date for the Water Meter Replacement Project to December
20, 2017 with final payment for the 2017 work submitted by January 31,
2018.
F. Adopt Resolution 2017-153 approving a variance to front yard setback
requirements to allow a front porch to be 21 feet from the front property
line when 30 feet is required at 8920 83rd Street Court South.
G. Approve Change Order No. 1 for the 65th Street, Geneva Avenue, and
New Oltman Middle School Project in the amount of$399,313.
H. Appoint Billy Thao to the Arts Commission.
I. Authorize staff to send a comment letter to Washington County regarding
their draft Capital Improvement Plan (CIP) 2018-2022. The Draft CIP can
be accessed at the following link:
https://www.co.washington.mn.us/documentcenter/view/18638.
Council Member Mills wished to pull Item H for further comment and/or discussion. She
stated she highly recommended Billy Thao be appointed to the Arts Commission by the
Council tonight.
Motion by Council Member Thiede to approve the consent agenda, second by Council
Member Johnson. Motion carried: 5-0.
Ryan Stanton, Mendota Heights, Minnesota, asked if he could address the Council
regarding Item B on the Consent Agenda; he was advised it had already been approved
by Council. He stated he was working on development projects in Cottage Grove and
also with the Wolterstorff family; the landowner wanted some discussion on the Park
Dedication Fee Amendment. Mr. Stanton asked if he could read a letter; City
Administrator Charlene Stevens stated all of the Council Members and staff had
received a copy of said letter. Mr. Stanton read a letter, regarding Ordinance 987, from
David Wolterstorff, who owns land along Jamaica Avenue, between Military and 70th
Street, which is currently being developed. Mayor Bailey stated the changes to the
ordinance mostly dealt with multifamily housing, which he confirmed with staff. They'd
City Council Meeting Minutes
November 15, 2017
Page 4
also met with some members of the Wolterstorff family. Mike Wolterstorff stated they
understood the ordinance, but they're looking at the possibility of different wording.
Mayor Bailey asked City Attorney Korine Land to speak on this topic; she stated this is
statutory language, that fee is based on the tax assessed value. She clarified the intent
of this ordinance is not to, in any way, determine somebody's sale price of their
property; it is solely limited to the amount that we value for park dedication fees. We'll
use the number in the City chart if someone wants to make a cash contribution instead
of the land dedication; that will either be the greater of the amount in the chart or the fair
market value of the land. If the fair market value is less than our chart, we'll use our
chart. If the fair market value is more, we'll use that value instead. It is not intended in
any way to affect the sale of the property; it's solely to determine what the cash
contribution amount is going to be based on. We'll base it on the fair market value of
the land and then compare that to our chart.
Mr. Stanton stated the fair market value of the land can be the assessment by
Washington County versus the standard appraisal process in real estate, which is the
highest and best use. Attorney Land stated that's a statutory definition so the City
couldn't change that even if we wanted to.
8. APPROVE DISBURSEMENTS
A. Approve payments for the period of 11/1/2017 through 11/16/2017 in the
amount of$3,438,225.20.
Motion by Council Member Mills to approve disbursements; second by Council Member
Thiede. Motion carried: 5-0.
9. PUBLIC HEARINGS — None.
10. BID AWARDS — None.
11. REGULAR AGENDA— None.
12. COUNCIL COMMENTS AND REQUESTS
Council Member Dennis stated he wished to recognize people or groups who make a
difference in Cottage Grove. The Arts Commission is comprised of nice, friendly,
positive, and creative people. Their purview is to bring art-related events and
awareness to our community in ways that benefit all people and enhance our lives
through appreciation and application of all forms of art and culture. He gave some
examples of their work: Artist of the Month program, the Path to Poetry contest, the
Strawberry Fest talent show, the Films in 5 Festival, and other specialty events, such as
the recent Paint `N Sip party at River Oaks. With those, people are drawn to Cottage
Grove, which also benefits our local economy. Council Member Dennis stated he'd
City Council Meeting Minutes
November 15, 2017
Page 5
invited Justin Atkinson, Chairperson of the Arts Commission, to speak about the Arts
Commission. Chairperson Atkinson thanked Council Member Dennis and the City of
Cottage Grove for their support. The Arts Commission was formed in 2013 and has
grown substantially, providing different ideas and events; they're looking forward to a
new summer concert series for 2018. Council Member Dennis stated he'd make a
personal donation of$500 to the Arts Commission, as they do not currently have a
funding source. He challenged his fellow Cottage Grove business owners and the
community to consider the Arts Commission as a very worthy recipient of any
donations. He thanked the Arts Commission members for all of the goodness they
bring to Cottage Grove.
Council Member Dennis stated all of the Council Members invest a lot of time with the
community, along with their spouses and family members. So, he wanted to wish his
wife a Happy 32nd Anniversary.
Council Member Johnson stated there will be a blood drive on November 21, at City
Hall, during the day. Blood is always needed so he encouraged everyone to donate.
Council Member Thiede stated they'll need a theme for Strawberry Fest 2018. He
encouraged people to contribute possible themes; you can send ideas to Council
Member Thiede or to cottagegrovestrawberryfest.com.
Mayor Bailey encouraged residents to go on the City's Facebook page to read the
"Mayor's Moment," which is a list of things going on in Cottage Grove between now and
the end of the year, including holiday events. He encouraged residents to participate
and to try to shop local and donate time whenever possible throughout the holidays.
Mayor Bailey confirmed with staff that one of the Council Meetings in December would
not be live; Administrator Stevens stated the first meeting, on December 6, will be live,
but the meeting on December 20 will not be live; it will be held in the training room and
they'll not be able to do a live feed for that because they'll be upgrading the technology
in the Council chambers. Also, any Boards or Commission meetings after December 6
will hold their meetings in the training room; they will be taped and then rebroadcast.
13. WORKSHOPS — OPEN TO PUBLIC — CONFERENCE ROOM
A. Public Safety Director Recruitment
Staff Recommendation: Discuss Public Safety Director Recruitment.
Human Resources Manager Joe Fischbach stated they received nine applications from
various applicants throughout the country. They felt there were three viable candidates
worthy of interviews; since they're not finalists, their information is not public data so
they'll be referred to as Candidates 1, 2, and 3. There is not a consensus on which
direction the Council wants to go; Manager Fischbach requested direction from the
Council for staff on what the next steps should be.
City Council Meeting Minutes
November 15, 2017
Page 6
Mayor Bailey stated his personal recommendation was they just interview two of the
three candidates; part of that process would require putting both of them through
management assessments so they'd be on equal footing.
Council Member Mills and Council Member Thiede stated they agreed with Mayor
Bailey's recommendation.
Council Member Dennis agreed with two candidates; however, he felt both of the
candidates would make an excellent Chief. Candidate 1 has worked for the City for 25
years; Candidate 2 has worked for the City for 24 years. He reviewed their various
positions during their tenure with the City. Their last management assessments were
done approximately eight-to-ten years ago. Council Member Dennis stated he'd asked
Manager Fischbach what the cost would be to do this; the cost is approximately $1,000,
per candidate. He felt if these were unknown candidates, he'd agree with doing the
assessments; since they've worked for the City for such a long time, he didn't know that
they should spend $2,000 on that process. Mayor Bailey stated they were unable to
find Candidate 2's assessment; Council Member Dennis stated he was not aware of
that.
Council Member Johnson stated they'd previously talked about keeping everything
even, so everyone would do the management assessment. He asked if Candidate 3
would get the management assessment or if we'd remove Candidate 3 and only go with
the first two. Administrator Stevens stated they were looking for direction from the
Council if they wanted to interview all three candidates or only Candidate 1 and
Candidate 2; those chosen would need to go through a management assessment.
Council Member Johnson stated they'd not yet met Candidate 3 so he was a bit
concerned if they were really being open to other candidates. He wanted to know why
Candidate 3 was being removed from the equation and did not deserve an interview.
Mayor Bailey stated he'd looked at Candidate 3, and looked at the size of the City and
the size of the department Candidate 3 was with now, and the criteria they put out
there, trying to determine if they'd fit. He felt Candidate 1 and Candidate 2 were more
advanced than Candidate 3. He stated if there were already reservations about the
candidate throughout the application process he'd be concerned they'd actually be
leading somebody along with no intention of actually hiring that person.
Council Member Dennis commented as a Council we've made a Strategic Plan to
improve our workplace culture to become an employer of choice; if we have good
people within the system, we probably want to provide opportunity for an upward
promotion in the organization. He felt that will motivate our staff by showing we do
promote good people from within.
Council Member Johnson stated he agreed with Council Member Dennis; however, he
just wanted to make sure we have legitimate reasons to eliminate Candidate 3 and not
City Council Meeting Minutes
November 15, 2017
Page 7
just personal feelings so there wouldn't be future problems with people saying we just
chose internal candidates. With what Mayor Bailey had said about Candidate 3 being
so far behind Candidates 1 and 2, regarding qualifications, he felt either one would be a
good fit.
Mayor Bailey stated he felt that's why the assessment process was going to be so
important because both of them were such good candidates.
Administrator Stevens stated they'd proceed forward with the Council's direction.
B. 2018 Budget and Capital Equipment Acquisition
Staff Recommendation: Review final recommended 2018 Tax Levy, 2018
budgeted funds, and all capital equipment to be acquired in 2018.
Finance Director Robin Roland stated they weren't going to make any changes to the
proposed levy; the budget is based upon a 3% levy increase. The General Fund budget
is balanced. She asked if Council had any questions; they'd bring the levy and the
budget to the December 6 meeting, as well as the equipment purchases. Should there
be any concerns, those items would be on separate Resolutions. Once the budget is
adopted, unless something varies greatly and comes in higher than the budgeted
amount, it's basically authorization to proceed, including the capital outlay, without
bringing it back to Council. Director Roland stated any concerns about capital outlay
should be addressed tonight, as slight changes to the budget could still be made.
She also mentioned that they could discuss the online permitting software; Mayor Bailey
confirmed that the cost of that was not included in the budget. Administrator Stevens
stated that there might be funding available to do that in 2018; if not, they'd bring it back
as part of the 2018-2019 budget process.
Permitting Software: Director Roland stated we are currently $485,000 above our
budgeted revenue and $220,000 under our budgeted expenses. So, we're about
$700,000 to the good, in excess of what we anticipated for year end. The majority of
the excess revenue is in the area of building permits and community development and
would support a designation at year end, which they're asking Council to do, as a
certain amount of excess revenue as a carry forward to support the purchase of the
permitting software. Working the annual costs into the budget is not a concern, as it's
slightly above what we're currently spending on Permit Works and what we'd need to
spend in the future to enhance that.
Director Roland stated all of the Building staff and Community Development staff had
the opportunity to see this product. It increases staff efficiency because it integrates
with our financial software. Mayor Bailey asked what benefit the customer would see.
Administrator Stevens stated from a customer standpoint, we currently don't have an
online permit system so it's necessary for contractors to physically come into City Hall.
Once it's online, the contractors can get their permits offsite, which will save them time
and money. Community Development Director/City Engineer Jennifer Levitt stated this
City Council Meeting Minutes
November 15, 2017
Page 8
software also includes rental licenses, dog licenses, inspections, etc., which will benefit
residents and City customers alike. The convenience factor is huge.
Council Member Thiede stated he's not against the software, but we'd previously talked
about an IT Strategy Plan that's apparently not yet been done. His biggest concern
is we put in spurious software that doesn't interact with anything and it's not part of an
overall plan; therefore, the software doesn't work well together. There should be some
justification for the new software, just as there would be on a piece of equipment. The
software should provide a benefit, and it should be able to document that benefit in
some way. $212,000 will be the cost in the first year; he asked what the payback would
be on that and when we'd actually see the benefit come through, either financially or
through intangibles, such as happy residents or contractors.
Director Roland stated as far as justification goes, we looked at three different systems.
She reviewed those and the associated costs, including the licenses needed. Council
Member Thiede stated we should look at how this will integrate with software in
other departments; for example, with Public Safety. As a responsible entity, by
spending money on this software, we need to know how long it will take to get payback.
Council Member Thiede asked how this software tied into the IT Strategy Plan.
Administrator Stevens stated standalone systems in other departments have now been
integrated so this is the same type of thing, taking a standalone system and integrating
it with our financial software.
Public Safety Director Craig Woolery stated this technology will save officers' time; it
would allow them to have access to animal license data in their squads as opposed to
needing to return to the Police Department to look up that information.
Council Member Thiede stated it could potentially increase our permits and increase our
revenue; those things would be strong justifications for the software.
Council Member Johnson stated he'd been asked to be involved with this permitting, as
he's a contractor who uses permitting. We need electronic permitting; the only way he's
found information on this was by stopping in and talking to Brian Bluhm. He said he'd
be willing to get involved with this, and is upset by hearing that the City's now ready to
move forward with a product. There were no conversations with him as a contractor; he
knows what contractors like in this software, he knew what he hated about pulling a
permit in Cottage Grove, and why he preferred to pull a permit in other cities. He stated
he'd never seen this software so he's upset that the City administration had decided to
ignore a resource, one who had shown enthusiasm to partake in this decision. Council
Member Johnson asked if anybody in the state used this software; he was informed the
City of North Mankato and others currently use this. Administrator Stevens stated
they're looking for a system that will integrate with the financial software.
Council Member Johnson was advised that no contractors had been invited to look at
the software to see if it's something that they think would be useful to them. Council
City Council Meeting Minutes
November 15, 2017
Page 9
Member Johnson asked if none had seen the software, how they could be sure it would
work well for them. Director Roland responded that they'd heard what he'd said; they
had been given examples of systems that he liked and utilized, and we'd tried to find a
similar product to purchase with online availability, ease of use, using a credit card
online to make a payment, and scheduling ability. So, they took direction from him but
hadn't invited him to come in and look at the software. They demonstrated the software
at City Hall to see how it would work for staff.
Council Member Johnson stated if homeowners are going to be using this software they
should be sure it won't be a headache for homeowners to have to use it. He felt input
should have been obtained from users before a decision was made. He thought they
missed some steps by ignoring resources to help make the decision whether or not it
would work for the contractors and the residents. He stated he was not ready to move
forward with any of it until he had an opportunity to look at it to see if it would even be
beneficial.
Director Roland stated she would need to speak with Brian Bluhm and the Community
Development staff. They'd figure out a process to bring this forward to get the analysis
done that Council Member Thiede wanted and some of the input that Council Member
Johnson wanted from contractors; they'd plan to take a look at the software, and to
bring it back to Council after we've done a little bit more research.
Council Member Dennis supported Council Member Johnson and thought we should
give him a chance to provide some input that could be helpful to the City.
Council Member Thiede had questions regarding equipment. Regarding Public
Works Director Burshten's vehicle, the Ford Escape, he felt the vehicle is only seven
years old and felt he hadn't been convinced that it needed to be replaced. Regarding
the Ford Expedition for the Fire Department, Council Member Thiede stated he had a
hard time understanding why a new vehicle was needed. Director Woolery stated the
view of the Public Safety Department is that they saved money by not buying a grass rig
and used a police SUV and moved it over to save $38,000 for the grass rig. We
dropped a squad car from the fleet because we were down officers last year. We're
adding an unmarked car. He stated he'd talked to Fire Chief Redenius about the SUV;
it was purchased new under former Chief Byerly. It's working, but it needs a new seat
and some updated graphics. He asked Chief Redenius if they could hold their breath
on this one; it's just a vehicle and we do really well on reselling those SUVs. The police
sold an older one and got $5,000 for it; the cost of a new vehicle would be $45,000.
The current vehicle could always run another year, if necessary.
Director Burshten stated the Public Works van will need a new transmission, with a cost
of$3,000-$4,000. That van is used for doing maintenance on the buildings; it carries a
lot of tools and is not used for towing. All the vans bought in 2004 have had issues with
transmissions. They prioritized their list, but they're willing to take whatever the Council
would like to do. We can hang onto the Escape for another year, although he's worried
City Council Meeting Minutes
November 15, 2017
Page 10
about the batteries in it; those batteries cost thousands of dollars.
Director Woolery stated they all try to maintain their vehicles to keep costs down. Many
vehicles have been pushed off the list and now we're here; now we've got vehicles that
are out of service and those are vehicles that are needed.
Director Roland stated the Prius was bought in 2009; they said it was a seven-year
battery. It's right in the ballpark for needing a new battery so we'll need to do something
with that next year.
Council Member Thiede stated if the Directors really felt the vehicles needed to be
replaced, he'd be okay with that.
Council Member Johnson asked about the eight-year-old ambulance with 143,000 miles
on it, which needs to be replaced; he asked where most of those miles come from.
Director Woolery stated the ambulances' miles come from the transports to the various
hospitals; that could be close, Woodwinds Hospital, or it could be far, Fairview Riverside
or HCMC or Regions Hospital. We also back up Hastings and Woodbury for medical
calls so they're just high-mileage vehicles. Director Roland stated both ambulances will
need to be replaced within the next three months.
14. WORKSHOPS — CLOSED TO PUBLIC — None.
15. ADJOURNMENT
Motion by Council Member Dennis, second by Council Member Thiede, to adjourn the
meeting at 8:41 p.m. Motion carried: 5-0.
Minutes prepared by Judy Graf and reviewed by Joe Fischbach, HR Manager/City
Clerk.