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MINUTES
COTTAGE GROVE CITY COUNCIL December 20, 2017
TRAINING ROOM
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 December 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; 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
Mayor Bailey requested a change to the agenda; he wished to move Item D, City Fee
Amendments, from the Consent Agenda and place it instead on the Regular Agenda as
Item C.
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
December 20, 2017
Page 2
Motion by Council Member Thiede to adopt the agenda with the change of putting Item
D, City Fee Amendments, into 11, the RegularAgenda, as Item C; second by Council
Member Dennis. Motion carried: 5-0.
6. PRESENTATIONS
A. South Washington County Telecommunications Commission 2016 Annual
Report - Mark Martinez, SWCTC Administrator
Mr. Martinez stated he wished to present the 2016 Annual Report. It was a very
important year for the Commission; they revised the Joint Powers Agreement, Mr.
Martinez succeeded Fran Hemmesch as Administrator, and they began a franchise
agreement with CenturyLink to provide telecommunication services, Internet services,
and cable TV.
Mr. Martinez reviewed major accomplishments in 2016 and the plans they'd made for
2017, including the upgrade to the Cottage Grove City Council chambers, currently in
progress.
They provide City meeting streaming for cities in South Washington County. They also
have recurring monthly programming. For Cottage Grove, those include: the Cottage
Grove Spotlight; Cottage Grove Council Update, hosted by Administrator Charlene
Stevens and a Council Member; and Grove 911, the Public Safety Department's show.
They also have annual and special programs, including Memorial Day services and the
Holiday Train.
He reviewed their financial statements for 2016, compared to 2015; they had a deficit in
2016, but they're looking to be right on budget for 2017. He noted Council Member
Thiede is on the Cable Commission; he's their treasurer, and so he works directly with
him on taking care of the budget. Council Member Thiede added that they welcome
comments about the services currently provided and any ideas for additions.
Mr. Martinez was thanked for providing the information.
7. CONSENT AGENDA
A. Approve the December 6, 2017 City Council Regular Meeting Minutes.
B. Adopt Resolution 2017-160 approving the Part-time Fire Pay Plan.
C. Appoint Adam Larson and Susannah Brown to the Parks, Recreation, and
Natural Resources Commission effective March 28, 2018.
D. Pass Ordinance 989 amending City Fees.
E. Adopt Resolution 2017-161 approving the changes to the 2018 Non-
Represented Pay Plan.
F. Approve the 2018-2020 Firefighters Labor Contract.
City Council Meeting Minutes
December 20, 2017
Page 3
G. Adopt Resolution 2017-145 terminating the Minimum Assessment
Agreement on the Grove Rainbow property as identified in the developer
agreement.
H. Adopt Resolution 2017-163 authorizing publication of Ordinance 988 by
title and summary.
I. Adopt Resolution 2017-167 approving the final payment in the amount of
$52,647.82 to Ryan Contracting Co. for the Hadley Avenue and 95th
Street Improvements Project.
J. Adopt Resolution 2017-166 approving the final payment in the amount of
$194,750.70 to Hardrives, Inc. for the 70th Street South (CSAH 22) and
Jamaica Avenue Improvements Project.
K. Adopt Resolution 2017-165 allowing the Commissioner of Transportation
to be appointed as an Agent of the City of Cottage Grove to accept federal
aid funds that may be available for transportation-related projects.
L. Approve the issuance of rental licenses to the properties in the attached
table.
M. Reappoint Ramona Westerberg to the EDA to a term expiring December
31, 2018. Reappoint Eric Thiewes to the EDA to a term expiring
December 22, 2022.
N. Adopt Resolution 2017-169 approving the final payment in the amount of
$33,902.23 to Landscape Structures, Inc. for the Woodridge Park
Inclusive Playground Project.
O. Adopt Resolution 2017-168 approving the final payment in the amount of
$9,910.31 to Pember Companies, Inc. for the Belden Sanitary Lift Station
Improvements Project.
P. Adopt Resolution 2017-170 approving the final payment in the amount of
$65,482.98 to Friedges Contracting Co., LLC, for the Summers Landing
1stAddition Utility, Street, and Lighting Improvements Project.
Q. Adopt Resolution 2017-171 approving the final payment in the amount of
$57,922.45 to Hardrives, Inc. from the development third-party agreement
for the final payment for the Everwood Final Street Improvements Project.
Council Member Thiede wished to pull Item H for further comment and/or discussion.
He stated his concern with Ordinance 988 was regarding communication by the City to
the homeowner regarding boulevard trees. He felt he needed to stress that
communication with homeowners was very important regarding any changes that were
going to be made to boulevard trees throughout the City.
Motion by Council Member Thiede to approve the agenda, second by Council Member
Mills. Motion carried: 5-0.
8. APPROVE DISBURSEMENTS
A. Approve payments for the period of 12/6/2017 through 12/21/2017 for the
amount of$1,282,899.05.
City Council Meeting Minutes
December 20, 2017
Page 4
Motion by Council Member Dennis to approve disbursements; second by Council
Member Johnson. Motion carried: 5-0.
9. PUBLIC HEARINGS — None.
10. BID AWARDS — None.
11. REGULAR AGENDA
A. Liquor Compliance Check Violations - Underage Sale
Staff Recommendation:Allow business representatives an opportunity to
respond to the City Council regarding liquor compliance check violations
occurring November 30, 2017: 1. Apple Minnesota, LLC/DBA Applebee's
Neighborhood Grill & Bar. If the representative admits to the violation or
fails to attend, impose the scheduled penalty for the 1 st violation in a 24-
month period, a $500 fine and a one-day suspension, or, at the City
Council's discretion, in lieu of the suspension, the participation of the
employees in an educational program approved by the Public Safety
Director. If the representative denies the violation, schedule a contested
case hearing before an administrative law judge. 2. Carbone's Pizza of
Cottage Grove, Inc./DBA Carbone's Pizza of Cottage Grove. If the
representative admits to the violation or fails to attend, impose the
scheduled penalty for the 2nd violation in a 24-month period of a $1,000
fine and a three-day suspension. If the representative denies the
violation, schedule a contested case hearing before an administrative law
judge.
City Clerk Joe Fischbach stated on November 30, 2017, the Cottage Grove Police
Department had conducted alcohol compliance checks; the purpose is to keep
alcohol out of the hands of minors, and the checks are required by State Statute. Two
businesses failed the checks, Carbone's Pizza and Applebee's Neighborhood Bar &
Grill. The two businesses have been invited here to either admit to the violation and/or
deny the violation, in which case they'd schedule a contested case hearing in front of an
administrative law judge.
For Applebee's, it would be their first violation in 24 months so they'd recommend a
$500 fine and a one-day suspension; at the Council's discretion, an alternative is they
can participate in an educational program approved by the Public Safety Director.
Applebee's Area Director and their General Manager, spoke to the Council. They
admitted to their violation; their server, Bailey, took an Under Age 21 license, she
missed it, and served the alcohol. Since that time, all of their employees have had
education and retesting, twice, and have also been advised if there's an out of state
license to bring it to the manager to have a second set of eyes look at it. Employees are
expected to adhere to the Applebee's alcohol policies. Every member of the Applebee's
City Council Meeting Minutes
December 20, 2017
Page 5
team signs an alcohol agreement when they begin work. Applebee's stated they'd do
whatever it takes to maintain their liquor license for a day and undergo any employee
training that's recommended.
Mayor Bailey stated the Council needed to make a decision on the fine and a
one-day suspension or the fine and employee education; he stated he'd need a motion.
Motion by Council Member Johnson for a $500 fine and a day of training approved by
the Public Safety Director; second by Council Member Thiede. Council Member Dennis
thanked Applebee's for appearing tonight. He wished them good luck and
hoped they'd do the right thing and not have another violation.
Motion carried: 5-0.
Clerk Fischbach stated Carbone's Pizza had a second violation in a 24-month period,
which would be a $1,000 fine and a three-day suspension; if they deny the violation, a
contested case hearing would be scheduled before an administrative law judge. Jonah
Weingarten of Carbone's Pizza stated he was there on behalf of his boss, Janelle
Erickson; he read a letter from her to the Council. In the letter she stated she admitted
to the violation and was embarrassed that as a supervisor she failed to do what they
train all of their employees to do with checking IDs. They've taken extra precautions
with liquor training, requiring they actually take the ID and have instituted a "card
everyone" policy. She indicated she will stress to her employees that it's very important
that they never serve minors.
Mayor Bailey asked Mr. Weingarten if Carbone's admitted to the violation; he stated
that they did. Mayor Bailey recommended to the Council that they impose the $1,000
fine, to be paid by January 31, 2018, and the consecutive three-day suspension be
arranged with Public Safety Director Woolery and carried out sometime during the first
three months of 2018.
Motion by Council Member Dennis to approve Mayor Bailey's recommendation;
second by Council Member Mills. Motion carried: 5-0.
B. Water & Sewer Rate Study and Water Conservation & Efficiency Options
Staff Recommendation: 1) Accept and adopt the recommendations of the
enclosed Revenue Sufficiency and Rate Design Study dated November
30, 2017. 2) Receive information on options to use water efficiency funds
from new water rates to expand water efficiency and conservation
throughout the City.
Project Engineer Nate Estrem stated the City had awarded the study to SEH in May,
2017, for the water and sewer recommendations. SEH reviewed capital expenditures
for water and sanitary sewer systems, developed a financial plan and cost-based rates
for both systems, and tried to promote water conservation. They reviewed user types,
reviewed alternate rate models, reviewed the conservation guidelines in State Statute
and also the DNR's recommendations to reduce consumption. Engineer Estrem
City Council Meeting Minutes
December 20, 2017
Page 6
reviewed the processes SEH used to complete the study. He explained the new water
rate model, Excessive Block, and explained how it would encourage conservation. The
proposed water rates for 2018 and 2019 for single-family residences, multifamily
residences, commercial, and irrigation will all increase, but the rates will be phased in
over two years.
Sanitary sewer rates for 2018 and 2019 for single-family residences and multifamily
residences will also increase; those, too, will be phased in over two years. Thereafter,
there will be a 1% rate increase annually.
Phase 1 of the rate changes will take effect January 1, 2018. Communication regarding
the new rates begins in December, 2017, and will continue via various methods
throughout the summer months.
Mayor Bailey stated for high-end users (primarily HOAs), a portion of the conservation
fee charged will be put aside to help encourage water conservation through various
methods (rain barrels, etc.). Mayor Bailey wanted to mention that if you're someone
who already conserves water and doesn't use high amounts every month, you will see
very little change in your monthly water/sanitary sewer bill.
Council Member Thiede stated he's heard that the City's raising water rates and yet is
running the Splash Pad, with waterjust running down the drain. He wanted to let
people know that the City's looking at ways to change that, filter it, and possibly reuse it;
he felt it was important that people know they're working on that issue.
Council Member Thiede asked Engineer Estrem to comment on ways citizens can
conserve water with a smart irrigation controller system. Engineer Estrem explained
that the City had received money last year as part of a conservation grant; with part of
that money, they purchased 36 smart irrigation controllers and sold them to residents on
a reduced-fee basis. He personally had purchased one and it reduced his water usage
considerably. The controllers interface with your Internet and also with a weather app.
It has a rain sensor and you can enter soil data, the size of your yard, the number of
irrigation heads, flow rates, and then it optimizes your irrigation for the type of grass and
soil in your yard. He personally saved over 2,000 gallons of water. Council Member
Thiede confirmed those will again be offered.
Engineer Levitt stated all of the items in the Council packet were examples of the
different avenues to help promote water conservation. They'll be applying for various
grants through the Clean Water funds, the Metropolitan Council, Washington County,
and other grants that might exist, and they'll be able to then document specific
conservation strategies. She stated they'd be happy to come back to show what their
projections for revenue in the conservation fund will be in 2018 and 2019. Council
Member Thiede stated that he thought the rain barrels were a big success this year; he
personally used one to water his flowerbeds. Council Member Thiede stated grants to
help commercial properties, HOAs, and businesses to optimize irrigation systems for
City Council Meeting Minutes
December 20, 2017
Page 7
efficiency, and reaching out to residents with education on how to conserve water, and
continuing to look for grant money to help conservation efforts would be very helpful.
Motion by Council Member Thiede to accept and adopt the recommendations of the
enclosed Revenue Sufficiency and Rate Design Study dated November 30, 2017;
second by Council Member Mills. Motion carried: 5-0.
C. City Fee Amendments
Staff Recommendation: Pass Ordinance 989 amending City Fees.
Motion by Council Member Mills to Pass Ordinance 989 amending City Fees; second by
Council Member Dennis. Motion carried: 5-0.
12. COUNCIL COMMENTS AND REQUESTS
Council Member Mills wanted to wish everybody a happy and safe holiday; all the
residents, all the City staff, and all those present tonight she wished everybody happy
holidays.
Council Member Thiede also wished everyone happy holidays; they're still looking for a
theme for next year's Strawberry Fest so he encouraged anyone with an idea to send it
in.
Council Member Johnson stated Council Member Mills said it all so he had nothing to
add.
Council Member Dennis stated they've had increasing concern by citizens with coyotes.
He had asked Director Woolery to have his staff do some research or contact the DNR
to suggest an action plan for residents who have growing concerns about coyotes near
their pets, children, and/or near the walking trails in the City. Director Woolery stated he
didn't have a magic answer for the increase in coyote sightings; in 2013, there were
three reported sightings and, so far, in 2017 there have been 16. Most sightings have
been on the outer, more rural areas of the City. The DNR web page has a lot of good
information on coyotes, and he feels we need to have an information campaign to better
inform our residents about them. Council Member Dennis hoped they could also reach
out to organizations that trap and/or remove coyotes and provide the Council with that
information; Director Woolery stated they'd be glad to do so. He advised that on
January 3, there will be a Public Services Commission Meeting, and this issue will be an
agenda item.
Mayor Bailey thanked the public and CP Rail for a fantastic Holiday Train event; this
was the 15th anniversary of the Holiday Train and over$1,000,000 has been raised at
our local stop in that time period, with over $100,000 of donations received this year. All
of the money raised stays in this area. He wanted to thank and congratulate Mary
Slusser, who initially spearheaded getting the Holiday Train to stop in Cottage Grove;
City Council Meeting Minutes
December 20, 2017
Page 8
she's announced that she will be retiring from her leadership role but he feels she'll still
remain involved.
Council Member Dennis wanted to share City team accomplishments of 2017:
-Public Safety: Includes police, fire, and EMS; the brand new Central Fire Station is
currently under construction and should open in the spring of 2018. Also, a police
forensics officer was hired to deal with computer crimes, proactive measures for
problem properties, and will support the needs of our business community.
-Parks and Recreation: One of our strategic goals is to make Cottage Grove a
recreation destination; in September, 2017, the brand new, 21,000-foot Inclusive
Playground opened. It's the largest inclusive playground in the State of Minnesota.
-The Ice Arena hosted more than 15 hockey tournaments, hockey programs, from youth
to adult, public skating sessions, a skating school, and hosted an indoor athletic turf
opportunity where people were invited to play soccer or other indoor games.
River Oaks Golf Course: Best Places to Play course, 4.5 stars; we made a connection
with the Twin Cities Golf Public Country Club. This actually brought in over 2,500
additional rounds of golf, so approximately $40,000 in revenue.
Eagles Bar & Grill and Event Center: The Eagles Bar & Grill introduced new menu
items and began offering a Fish Fry and prime rib specials on the weekends. The Event
Center bar area was remodeled to update the look and improve the customer
experience.
Public Works: Crews paved more than 2,500 tons of asphalt this year, a new record,
and held an open house in September, which 1,200 residents attended. With a late
summer storm, the Public Works crews helped remove damaged trees from boulevards
and streets.
Engineering Department: There were health-based values of our water supply, which
created the need for a watering ban. The engineers worked rapidly to resolve the issue,
which included installation of a new well; their efforts resulted in an award from the
APWA for Project of the Year.
Economic Development: Continued growth in our business and residential
communities; residential and commercial permit value this year of over$160,000,000,
which is exceptional. Local businesses participated in a business retention and
acquisition project and continue to look at Cottage Grove for growth. More than 100
new homes were constructed this year, and road projects, including major roundabouts,
help us all get around easier and safer.
Finance Department: Once again received a Certificate of Achievement for Excellence
in Financial Reporting for the City's Comprehensive Annual Financial Report.
Administration: The City now accepts credit cards for payment of City fees, permits,
and licenses, for the convenience of residents. Social media, including Facebook, helps
keep residents informed. "My Future Cottage Grove" got residents involved and citizen
volunteer teams were formed to help achieve targeted goals from the City surveys.
Mayor Bailey wished everyone a Merry Christmas and stated they'd be back in the
newly-renovated Council Chamber in 2018.
City Council Meeting Minutes
December 20, 2017
Page 9
13. WORKSHOPS — OPEN TO PUBLIC — None.
14. WORKSHOPS — CLOSED TO PUBLIC — None.
15. ADJOURNMENT
Motion by Council Member Thiede, second by Council Member Johnson, to adjourn the
meeting at 8:16 p.m. Motion carried: 5-0.
Minutes prepared by Judy Graf and reviewed by Joe Fischbach, HR Manager/City
Clerk.