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HomeMy WebLinkAbout1999-05-19 MINUTES� FINAL AGENDA � COTTAGE GROVE CITY COUNCIL MAY 19, 1999 Persons wishing to address the Councii during fhis meeting are asked to fill out a"Speaker Signup Form" and return the form to any Staff Member prior to the start of the meeting. Speaker Signup Forms are located on each audience chair in the Council Chamber. OPEN FORUM - 7:15 P.M. Persons may address the City Council on subjects that are not a part of the Regular Meefing agenda, but must limit remarks to two (2) minutes. Open forum will adjourn to the Regular Meefing promptly at 7:30 p.m. Open Forum and a portion of the Regular Meeting are televised LIVE, airing on Government Channel 12. REGULAR MEETING - 7:30 P.M. CALL TO ORDER — Mayor • ROLL CALL — City Clerk 1. ADOPTION OF AGENDA 2. PRESENTATIONS A. Proclaim Tuesday August 3, 1999 as National Night Out. 3. APPROVAL OF MINUTES A. April 7, 1999 Regular Meeting. 4. CONSENT CALENDAR A. Accept and Place on File the Following Minutes: i. Economic Development Authority of April 13, 1999. ii. Public Safety, Health and Welfare Commission of February 9, 1999. iii. Public Works Commission of April 12, 1999. B. Receive and approve preliminary estimate for Kingsborough Woods Utility, Street, and Street Lighting Improvements. Staff Recommendation: Receive and approve preliminary estimate. C. Authorize issuance of single-occasion gambling permit to John and Sheryl Lynn McMahan on behalf of the Great Grove Get Together Committee for raffles to be held at Kingston Park on June 12, 1999. Staff Recommendation: Authorize issuance of single-occasion gambling permit. . MAY 19, 1999 AGENDA Cottage Grove City Council • D. Award Hamlet Park skateboard paving contract to Frattalone Paving, Inc. in the amount of $13,354.00, and authorize staff to purchase fiber blanket material and contract with Rumpca Excavating, Inc. for removal and replacement of sub soil materials. Staff Recommendation: Award bid and proceed with planned improvements. E. Adopt resolution approving final payment on the Jamaica Avenue South Project in the amount of $54,230.47 to Tower Asphalt, Inc. Staff Recommendation: Adopt the resolution. F. Adopt resolution approving final payment on the Pine Glen 5th Addition Project in the amount of $12,060.19 to Volk Sewer and Water. Staff Recommendation: Adopt the resolution. G. Adopt resolution accepting corporate donations totaling $1,700 for the Great Grove Get Together Celebration. Staff Recommendation: Adopt the resolution. H. Adopt resolution approving the application by Heidi and Cary Carstensen for a rural lot division at 6110 Lamar Avenue South and 6000 Lamar Avenue South. Staff Recommendation: Adopt the resolution. I. Adopt resolution approving simple lot division filed by Mark Lamberty and Harald Bordewich to split a vacant parcel of land at 7472 Granada Circle South and combine each respective half to property they each own adjacent to it. Staff Recommendation: Adopt the resolution. J. Adopt resolution approving preliminary plat application from U.S. West • Communication to subdivide approximately 3.2 acres of land into two lots. Properties involved are 7606 and 7676 — 80th Street South. Staff Recommendation: Adopt the resolution. K. Appoint Heather Wahl to regular full-time status. Staff Recommendation: Approve the appointment. L. Appoint Liz Johnson to regular full-time status. Staff Recommendation: Approve the appointment. M. Adopt ordinance rezoning approximately 13.7 acres of land from AG-1, Agricultural Preservation, to R-1, Rural Residential, and adopt resolution approving preliminary plat named Stony Ridge Addition. Staff Recommendation: Adopt the ordinance and resolution. N. Approve contribution of $3,000 to the South Washington County Senior Center from the Gambling Contribution Fund. Staff Recommendation: Approve the contribution. O. Receive information on the Lower Pool 2 placement site excavation near Grey Cloud Island. Staff Recommendation: Receive information. P. Adopt resolution accepting citizen donations of cash totaling $590 for the Great Grove Get Together and Cottage Grove Jaycees Community Celebrations. Staff Recommendation: Adopt the resolution. � MAY 19, 1999 AGENDA Cottage Grove City Council . Q. Authorize issuance of Outdoor Event Permit to Kevin Raun in conjunction with the Great Grove Get Together for Saturday, June 12, 1999 and Sunday, June 13, 1999 for the following events to be held at Kingston Park—Car Show, Craft Show, Foot Races and Food Concessions, conditioned on compliance with the recommendations established by the Public Safety, Health and Welfare Commission; and authorize issuance of Outdoor Event Permit for Garden Tractor Pull event to be held on Sunday, June 13, at the VFW Red Barn, conditioned on compliance with the recommendations established by the Public Safety, Health and Welfare Commission. Staff Recommendation: Authorize issuance of outdoor event permits. *R. Authorize civil penalties, as outlined within the 1989 Resolution, for the businesses which failed the April 16, 1999 alcohol compliance check. Staff Recommendation: Authorize civil penalties for April 16 alcohol compliance check violations. 5. RESPONSE TO PREVIOUSLY RAISED OPEN FORUM ISSUES 6. PUBLIC HEARINGS 7. BID AWARDS *A. Adopt resolution awarding bid for construction of 1999 Pavement Management • Project to Ace Blacktop in the amount of $705,200. Staff Recommendation: Adopt the resolution. 8. UNFINISHED AND NEW BUSINESS A. Adopt resolution granting interim conditional use permit to alfow Rumpca Excavating to stockpile and recycle blacktop and concrete roadway materials on a 40-acre tract of land on 70th Street just north of Harkness Avenue. Staff Recommendation: Adopt the resolution. B. Adopt resolutions creating Economic Development Trust Fund and accepting donated funds from LSP Cottage Grove, and affirm acceptance of the intent of Trust Fund management policies. Staff Recommendation: Adopt the resolutions, and affirm acceptance of the intent of Trust Fund management policies. C. Authorize Mayor to enter into lease amendment for River Oaks Golf Course with 3M Company. Staff Recommendation: Authorize Mayor to enter into /ease amendment. D. Authorize staff to enter into a contract with Youngdahl Companies for insurance agent services for $9,600 per year, and Preferred Workcare for managed care services for $2,500 per year. Staff Recommendation: Authorize staff to enter into contracts for insurance agent services and managed care services. . - -� MAY 19, 1999 AGENDA Cottage Grove City Council . *E. Review and provide staff direction regarding plans for the construction of a new clubhouse facility at the River Oaks Golf Course. Staff Recommendation: Authorize staff to proceed with solicitation of bids from the pre-qualified bidders list for the construction of a 7,040 square-foot club house and remodeling of the exisfing clubhouse. 9. RESPONSE TO PREVIOUSLY RAISED COUNCIL COMMENTS AND REQUESTS A. Receive information on the status of the City's MSA account. 10. COUNCIL COMMENTS AND REQUESTS 11. PAY BILLS A. Approve payment of check numbers 107723 to 107915 in the amount of �452,340.07. 12. WORKSHOP SESSION — OPEN TO PUBLIC A. Receive information and discuss status of Washington County HRA Municipal Service Charge Agreements. B. Hold discussion and give direction on annexation inquiry from Mr. Gordon Nesvig of Grey Cloud Township. 13. WORKSHOP SESSION — CLOSED TO PUBLIC . ADJOURNMENT * Monday Packet Items � : REGULAR MEETING COTTAGE GROVE CITY COUNCIL May 19, 1999 OPEN FORUM - 7:15 p.m. Open Forum provides persons an opportunity to inform the Council of a problem or to request information related to City business that has not been scheduled for Council action and does not appear on the Agenda. Mayor Denzer encouraged persons to limit their remarks to two (2) minutes per issue. Present: Mayor John Denzer Council Member Cheryl Kohls Council Member Pat Rice Council Member Sandy Shiely Council Member Jim Wolcott Absent: None Also present: Ryan Schroeder, City Administrator Jerry Bourdon, City Engineer Kim Lindquist, Community Development Director ` Liz Johnson, Finance Director John Mickelson, Deputy Director of Public Safety Michelle Wolfe, Assistant City Administrator Gary Kjellberg of 7389 Inman Avenue South, voiced concern regarding restoration of property along Indian Boulevard and Isleton Avenue where US WEST Communications, Inc., did some utility work a month or so ago. The yards have not been restored to their original condition. Mayor Denzer directed Administrator Schroeder to have the Public Works Department contact US WEST. CALL TO ORDER The City Council of the City of Cottage Grove, Washington County, Minnesota held a regular meeting on Wednesday, May 19, 1999, at the Cottage Grove City Hall, 7516 80th Street South. Mayor Denzer called the meeting, to order at 7:30 p.m. . Regular Meeting — May 19, 1999 Cottage Grove City Council Page 2 • ROLL CALL Present: Mayor John Denzer Council Member Cheryl Kohls Council Member Pat Rice Council Member Sandy Shiely Council Member Jim Wolcott Absent: None Also present: Ryan Schroeder, City Administrator Jerry Bourdon, City Engineer John Fredrickson, Asst. Public Works/Parks & Recreation Director Bruce Anderson, Golf Course Manager Liz Johnson, Finance Director Kim Lindquist, Community Development Director John Mickelson, Deputy Director of Public Safety Bob Long, City Attorney Mayor Denzer presided over the meeting. � ADOPTION OF AGENDA MOTION BY WOLCOTT, SECONDED BY SHIELY, TO APPROVE THE FINAL AGENDA AS PRESENTED. MOTION CARRIED. 5-0. PRESENTATIONS Proclaim Tuesday August 3. 1999 as "National Night Out" Dav Shiely read aloud the proclamation declaring August 3, 1999 as "National Night Out" Day in the City of Cottage Grove. APPROVAL OF MINUTES The minutes of the March 17, 1999, Regular City Council meetings were amended as follows: Page 14, paragraph six should read: "Wolcott stated that he, too was on the Planning Commission in 1979 ..." (not 1995). Page 6, paragraph two should be 80` Street not 70` Street. Page 9, �rst full paragraph shou(d read the `: the west side of Highway 61 this year." • Mayor Denzer asked the City Clerk to record the minutes, as amended. - Regular Meeting — May 19, 1999 Cottage Grove City Council Page 3 • CONSENT CALENDAR Shiely pulled item R on civil penalties for businesses that failed the alcohol compliance check. Shiely raised concerns about why staff was recommending that some of the businesses on page 3 of the memorandum should have their fine reduced. Mickelson responded that SuperAmerica and G-Will Liquors requested assistance from the police department to resolve the issue. Long stated that in order for a fine to be placed on a liquor establishment, a hearing needed to be called per state statutes. Shiely requested a copy of the statute from Long. MOTION BY RICE, SECONDED BY SHIELY, TO REMOVE ITEM R FROM THE AGENDA. MOTION CARRIED. 5-0. Mayor Denzer acknowledged the contributions in item P from the citizens of Cottage Grove of $590.00 for the Great Grove Get-Together and Cottage Grove Jaycees. He also acknowledged the donation of $1,700 from different corporations for the Great Grove Get-Together. MOTION BY WOLCOTT, SECONDED BY SHIELY TO: • A. ACCEPT AND PLACE ON FILE THE FOLLOWING MINUTES: APRIL 13, 1999 ECONOMIC DEVELOPMENT AUTHORITY MEETING. ii. FEBRUARY 9, 1999 PUBLIC SAFETY HEALTH AND WELFARE COMMISSION MEETING. iii. APRIL 12, 1999 PUBLIC WORKS COMMISSION MEETING. B. RECEIVE AND APPROVE PRELIMINARY ESTIMATE FOR KINGSBOROUGH WOODS UTILITY, STREET, AND STREET LIGHTING IMPROVEMENTS. C. AUTHORIZE ISSUANCE OF A SINGLE-OCCASION GAMBLING PERMIT TO THE GREAT GROVE GET TOGETHER COMMITTEE FOR A RAFFLE TO BE HELD AT KINGSTON PARK ON JUNE 12, 1999. D. AWARD HAMLET PARK SKATEBOARD PAVING CONTRACT TO FRATTALONE PAVING, INC., For $13,354.00. AUTHORIZE STAFF TO PURCHASE FIBER BLANKET MATERIAL AND CONTRACT WITH RUMPCA EXCAVATING, INC. FOR REMOVAL AND REPLACEMENT OF SUB SOIL MATERIALS. . Regular Meeting — May 19, 1999 Cottage Grove City Council Page 4 • E. ADOPT RESOLUTION 99-75 APPROVING FINAL PAYMENT TO TOWER ASPHALT ON THE JAMAICA AVENUE SOUTH RECONSTRUCTION PROJECT. F. ADOPT RESOLUTION 99-76 APPROVING FINAL PAYMENT TO VOLK SEWER AND WATER, INC. ON THE PINE GLEN 5 ADDITION PROJECT. G. ADOPT RESOLUTiON 99-77 ACCEPTING CORPORATE CONTRIBUTIONS TOTALING $1,700 FOR THE GREAT GROVE GET TOGETHER CELEBRATION. H. ADOPT RESOLUTION 99-78 APPROVING THE APPLICATION OF HEIDI AND CARY CARSTENSEN FOR A RURAL LOT DIVISION AT 6110 LAMAR AVENUE SOUTH AND 6000 LAMAR AVENUE SOUTH. ADOPT RESOLUTION 99-79 APPROVE A SIMPLE LOT DIVISION, FILED BY MARK LAMBERTY AND HARALD BORDEWICH TO SPLIT A VACANT PARCEL OF LAND AT 7472 GRANADA CIRCLE SOUTH AND COMBINE EACH RESPECTIVE HALF TO PROPERTY THEY EACH OWN ADJACENT TO IT. � J. ADOPT RESOLUTION 99-80 APPROVING THE PRELIMINARY PLAT APPLICATION FROM US WEST COMMUNICATIONS TO SUBDIVIDE APPROXIMATELY 3.2 ACRES OF LAND INTO TWO LOTS. THE PROPERTIES INVOLVED ARE 7606 AND 7676 - 80TH STREET SOUTH. K. APPOINT HEATHER WAHL TO REGULAR FULL-TIME STATUS. L. APPOINT LIZ JOHNSON TO REGULAR FULL-TIME STATUS. M. ADOPT ORD/NANCE 664 APPROVING THE REZONING OF APPROXIMATELY 13.7 ACRES OF LAND FROM AG-1, AGRICULTURAL PRESERVATION, TO R-1, RURAL RESIDENTIAL. ADOPT RESOLUTION 99-81 APPROVING THE PRELIMINARY PLAT NAMED "STONY RIDGE ADDITION." N. APPROVE 1999 CONTRIBUTION OF $3,000 TO THE SOUTH WASHINGTON COUNTY SENIOR CENTER FROM THE GAMBLING CONTRIBUTION FUND. O. RECEIVE INFORMATION ON THE LOWER POOL 2 PLACEMENT SITE EXCAVATION NEAR GREY CLOUD ISLAND. P. ADOPT RESOLUTION 99-82 ACCEPTING CITIZEN DONATIONS TOTALING � $590.00 FOR THE GREAT GROVE GET TOGETHER AND COTTAGE GROVE JAYCEES COMMUNITY CELEBRATIONS. ° Regular Meeting — May 19, 1999 Cottage Grove City Council Page 5 • Q. AUTHORIZE ISSUANCE OF AN OUTDOOR EVENT PERMIT TO THE GREAT GROVE GET-TOGETHER COMMITTEE FOR THE CELEBRATION TO BE HELD ON JUNE 12 AND 13 FOR THE FOLLOWING EVENTS TO BE HELD AT KINGSTON PARK — CAR SHOW, CRAFT SHOW, FOOT RACES, AND FOOD CONCESSIONS, CONDITIONED ON COMPLIANCE WITH THE RECOMMENDATIONS ESTABLISHED BY THE PUBLIC SAFETY, HEALTH AND WELFARE COMMISSION. AUTHORIZE ISSUANCE OF AN OUTDOOR EVENT PERMIT TO THE GREAT GROVE GET-TOGETHER COMMITTEE FOR A GARDEN TRACTOR PULL TO BE HELD ON SUNDAY, JUNE 13, 1999, AT THE VFW RED BARN, CONDITIONED ON COMPLIANCE WITH THE RECOMMENDATIONS ESTABLISHED BY THE PUBLIC SAFETY, HEALTH, AND WELFARE COMMISSION. R. REMOVED FROM THE AGENDA. MOTION CARRIED: 5-0. RESPONSE TO PREVIOUSLY RAISED OPEN FORUM ISSUES — None. • PUBLIC HEARINGS — None. BID AWARDS 1999 Pavement Management Project MOTION BY WOLCOTT, SECONDED BY RICE, TO ADOPT RESOLUTION 99-83, A RESOLUTION AWARD{NG BID FOR THE CONSTRUCTION OF THE 1999 PAVEMENT MANAGEMENT PROJECT TO ACE BLACKTOP IN THE AMOUNT OF $705,200. MOTION CARRIED. 5-0. UNFINISHED AND NEW BUSINESS Interim Conditional Use Permit - Rumpca Excavating, Inc. Paul Korkowski of 7157 Hidden Valley Lane South stated that sand had been stockpiled there and the machines begin at 5:30 a.m. He was not happy with that and was opposed to the location being used for the storage of additional materials. Steve Kramer of 7260 70` Street South indicated that this was a residential area and as such this location was not a good spot for manufacturing or other industrial use. He was concerned about the trucks that would be on 70' Street. He suggested that the operation be moved to a more commercial area and was opposed to locating it in a . residential area. Regular Meeting — May 19, 1999 Cottage Grove City Council Page 6 • Steve Weber of 7135 Hidden Valley Lane South, stated he did not feel this type of traffic and business, six days a week, from 7 a.m. until 7 p.m., was appropriate for a residential area. He stated his opposition. Lori Smith of 7133 Hidden Valley Lane South, stated that she is opposed to the location of the business. She stated she works nights and the noise would keep her from sleeping and getting sufficient rest during the day. George Broshears of 7388 Granada Alcove South, felt that there would be too much traffic and too many large trucks in the residential area. He thought the roadway was too narrow for such traffic, and believed it was a safety issue. In 1993, the project was turned down, and he felt it was an even bigger issue today. Mayor Denzer questioned what the hours posted in the Conditional Use Permit application were, along with the numbers of trucks traveling to and from the site. Joe Rumpca from Rumpca Excavating, Inc., responded that there would be a maximum of fifteen to twenty trucks per hour since the stockpile is not big enough to support any more traffic, and the earthmovers do not start until 7 a.m. Additionally, he stated that he did not have fifty trucks to move in one hour. As to the conditions of the permit, Rumpca stated they would be crushing only five days • a week (#4) and the trucks would haul twelve hours a day (#5). However, he commented that he did not want them to be hauling after 6 p.m. In response to a citizen's concern regarding toxic waste/carcinogens in the piles, Mr. Rumpca stated that there was no hazardous waste in the materials. He added that every citizen in Washington County would benefit from fewer hauling miles for these materials. Shiely asked where the incoming materials would come from. Mr. Rumpca stated that 60 — 70 percent would be from Cottage Grove locations. The rest would come from other locations, such as St. Paul Park, Newport, South St. Paul, and other nearby locations. Additionally, Mr. Rumpca noted that Cottage Grove residents are not charged for dumping materials there. Mayor Denzer asked what the duration of the Conditional Use Permit was. Lindquist stated that it was for this year anly, through November 15` Denzer asked how many grinding days there would be during that time period. Mr. Rumpca responded that he would like around 30 days of grinding during that 3-4 month period. • Kohls explained that they use ground up asphalt and such for the streets of Cottage Grove. She asked how much would be used during the 1999 program. Burshten • Regular Meeting — May 19, 1999 Cottage Grove City Council Page 7 � replied that he could not estimate the amount yet. He stated they would probably go there for materials since the transport costs would be less. Kohls remarked that the proposal for crushing was for 20 days and that it was sporadic during the season. Shiely asked how this use could be accommodated in regard to the zoning ordinance. Lindquist stated that it was an interim use and was not limited to B2 zoning, but could be permitted in any district. However, the applicant would have to meet all the conditions set forth in the permit. Shiely stated that she could see a negative impact on adjoining properties. Kohls asked a local developer, Mike Rygh, about the effect on property values, which was a concern of many citizens. Mr. Rygh stated that it could definitely impact sales, however he did not see it as a big issue for his business. Gary Kjellberg of 7389 Inman Avenue South asked about the noise pollution that would occur. Secondly, he asked about the dust that would be generated and stated that he believed this was a carcinogen. He stated that water helps keep it down; however, it infiltrates into the soil. Kjellberg stated he felt this type of business did not belong in a residential neighborhood. • Kohls asked if the process was regulated by the PCA. Administrator Schroeder indicated that they regulate the noise, but that since the operation does not produce sustained noise, it does not exceed PCA maximums. Kohls asked Mr. Rumpca if he had to file with the PCA. He stated that he did not. Judd Seiford of 7127 Hidden Valley Lane South stated he spoke to the PCA today and was told that an air-quality study needed to be done after the business was up and running. To shut down the business in order to do this test a petition with 25 signatures would be required. Shiely commented that she did not feel the operation should be conducted in a rural residential area. MOTION BY RICE, SECONDED BY WOLCOTT, TO ADOPT RESOLUTION 99-84 APPROVING THE INTERIM CONDITIONAL USE PERMIT TO ALLOW RUMPCA EXCAVATING TO STOCKPILE AND RECYCLE BLACKTOP AND CONCRETE ROADWAY MATERIALS ON A 40-ACRE TRACT OF LAND ON 70 STREET JUST NORTH OF HARKNESS AVENUE. MOTION CARRIED. 4-1. (SHIELY VOTED NAY) . • Regular Meeting — May 19, 1999 Cottage Grove City Council Page 8 Economic Development Trust Fund Schroeder stated that the Council was looking at three different motions for this agenda item. The policies were drafted in such a manner that if any money were left in the fund, it would be directed to economic development. Schroeder stated that a local company was interested in making a donation to the City; the fund would be set up and the donation would be restricted to this fund. Kohls asked who would manage the fund. Schroeder stated that the City Council would. Shiely asked if the fund could be used for existing projects. Schroeder stated that that was not the intent of the fund. It was intended for future development. MOTION BY WOLCOTT, SECONDED BY RICE, TO ADOPT RESOLUTION 99-85 CREATING THE ECONOMIC DEVELOPMENT TRUST FUND. MOTION CARRIED. 5-0. MOTION BY WOLCOTT, SECONDED BY SHIELY, TO ADOPT RESOLUTION 99-86 ACCEPTING THE DONATION OF FUNDS FROM LSP COTTAGE GROVE. MOTION CARRIED. 5-0. • MOTION BY RICE, SECONDED BY SHIELY, TO AFFIRM COUNCIL ACCEPTANCE OF THE INTENT OF THE TRUST FUND MANAGEMENT POLICIES PURSUANT TO THE ABOVE TWO MOTIONS. MOTION CARRIED 5-0. Kohls expressed gratitude for the donation, and Mayor Denzer thanked LSP for their donation on behalf of the City of Cottage Grove. Lease Aareement for River Oaks Golf Course with 3M Company. Schroeder stated that since this item was written, he has spoken with the attorney who wanted to make sure that Cottage Grove understood item 3B in the lease. This paragraph increases exposure to claims impacting the value of the land. When the City condemns land, they place a value on it and thus, the risk is increased. MOTION BY WOLCOTT, SECONDED BY SHIELY, TO AUTHORIZE THE MAYOR TO ENTER INTO A LEASE AMENDMENT FOR RIVER OAKS GOLF COURSE WITH 3M COMPANY. MOTION CARRIED: 5-0. Contracts with Younc�dahl Companies and Preferred Workcare MOTION BY SHIELY, SECONDED BY WOLCOTT, TO AUTHORIZE STAFF TO ENTER INTO A CONTRACT WITH YOUNGDAHL COMPANIES FOR INSURANCE • AGENT SERVICES FOR $9,600 PER YEAR, AND PREFERRED WORKCARE FOR MANAGED CARE SERVICES FOR $2,500 PER YEAR. MOTION CARRIED. 5-0. � Regular Meeting — May 19, 1999 Cottage Grove City Council Page 9 • Construction of Clubhouse Facility at the River Oaks Golf Course. Glenn Hammerly of 8452 85 Street South, expressed support to expand the clubhouse to provide fuli catering and banquet services. The facility could be used for groups and meetings and would be very profitable to the community. Bruce Anderson gave an overview of the plan and history. He showed site and floor plans for the expansion of the golf course. A canopy would join the two clubhouses. The old clubhouse would be strictly used for golf activities and would be good for inclement weather activities. The new addition would have a four-season porch that would seat around 36 peop{e. There would be a blacktop path and landscaping created around it, with a sidewalk that would be canopied from the parking lot. Rooms A and B would each hold 116 people and have a movable wall between them, allowing the creation of a larger room. The total capacity of the area would be 350 people. Shiely asked where the location of the fireplace would be, which, it turned out, had been moved from an earlier proposal to allow for the creation of a larger room holding more people. It would now be located in the corner of the golfer's lounge. Anyone renting the facility would need to cater in food. There would be a bar area and two portable bars for the individual rooms. The rooms had been professionally • designed. The goal was to maximize use. The reservation policies were covered on page four of the River Oaks Golf Course Expansion plan dated May 13, 1999. Anderson fielded questions from the Council regarding the financial aspect of the plan, which consisted of a 5.5% bond of $1,275,000 for fifteen years. Shiely asked how many round of golf were played per year. Anderson responded that it was around 42,000 rounds per year. Green fees would increase throughout the bond period in a reasonable manner. The plan shows this increase. The current rate structure is low. Gary Kjellberg of 7389 Inman Avenue South, expressed concern over adding additional debt to the golf course while cutting back on other infrastructure of the City. Mayor Denzer stated that the golf course was revenue generating and paid for itself. Mr. Kjellberg asked who had responsibility for the debt. Schroeder stated that it would be a revenue debt and paid out of the revenue sources. Denzer stated that safeguards had been built into the numbers in the plan to protect against insufficient funds. If it did not pay for itself, the City would have to subsidize the cost, but nothing would come out of the general fund. There was discussion on the various input numbers to the plan. In order to maximize the revenues in 1999, Wolcott suggested that the construction be moved up in order to meet a December usage plan. Anderson stated that the construction was scheduled to . allow a cash reserve to be built up ahead of time and to accommodate golf tournaments that are now booked. However, he would look at moving the schedule up. Regular Meeting — May 19, 1999 Cottage Grove City Council Page 10 • Kohls stated that she had spent time calling around to various locations for information. She stated that the competition for banquet facilities was really tight. She had looked at a profit analysis for the banquet facilities and stated that she agreed the clubhouse could be updated, however she did not think the City needed to be in the banquet business. Last year she had had requests for more ice arenas and swimming pools, and saw other recreational needs for the City also. Kohls feft that the golfers could be accommodated for a lot less than $1,275,000, feeling the amount is extravagant. She thought it could be a nice facility without the banquet aspects. Jim Krueger of 8214 Hillside Trail South, stated he visited other municipal golf courses such as Edinbourgh. All of them were making money. They had attracted the LPGA and recognition to the city. He asked the Council to "take the blinders off and look at the whole picture." There are no nice facilities in Cottage Grove to be used for banquets and other functions, he stated, and even the School District has to go outside of Cottage Grove for appropriate facilities. Gary Glass of 6456 90` Street South felt the Council should focus on needs for the children of Cottage Grove, not the golfers. He agreed with Council Member Kohls, and felt that the clubhouse was a"waste of money." • Mayor Denzer stated that when the golf course improvements were paid for, the money could be directed to other projects. Mr. Hammerly stated that he was an avid golfer. River Oaks was now rated in the top ten golf courses in the Twin Cities area, however if it didn't keep improving, they would lose that status. All citizens can use banquet facilities, he stated, not just golfers. Kohls stated that she was proud of the golf course and its status. However, it was built without banquet facilities. The kids need activities and the City has lots of other needs, she stated. After further discussion, Henry Mattini thanked Kohls for standing out alone. He did not believe a profit could be made from a golf course. He said, "let's not confuse revenue with profit." He stated that there would always be a need to put money back into a municipal golf course, and there were too many other needs in the City. He urged the Council not to "throw away more money to the golfers." Denzer stated that they were spending the golfers' money. He also stated that after owning a business for 34 years, he understands the need to spend more money on improvements. AI Olson of 8200 Hillside Trail South, stated the need to spend the money on other • community needs. However, he did understand the need to upgrade the golf course. • Regular Meeting — May 19, 1999 � Cottage Grove City Council . Page 11 • Shiely felt there were some items in the cost breakdown that perhaps could be cut back on, such as VCRs, pictures, etc. Denzer reiterated that the golf course has not cost the citizens one penny nor was it projected to with these improvements. When other activities were suggested for the money, Wolcott indicated that the golf course needed to be in line with other municipal golf courses. Further, it was paid for by the golfers. He stated, "if the swimmers want to pay for upgrades to the pool, let them, but the City will probably have to subsidize it." MOTION BY WOLCOTT, SECONDED BY RICE, TO AUTHORIZE STAFF TO PROCEED WiTH SOLICITATION OF B1DS FROM THE PRE-QUALIFIED BfDDERS LIST, FOR THE CONSTRUCTION OF A 7,040 SQUARE FOOT CLUB HOUSE AND REMODELING OF THE EXISTING CLUBHOUSE, AT AN ESTIMATED PROJECT COST OF $1,275,000. Shiely commented that the clubhouse would be there for the whole community, serving as a meeting place. She asked staff to look at the expense items to see what could be cut back on or donated. Dave Debase of 7305 Iverson Avenue South stated his opposition to building something to serve only 20% of the population. Shiely asked what percentage of people � use the pool, which has been subsidized by the City, yet is a revenue_generating facility. She felt that the banquet facilities and meeting rooms might increase usage of the golf course. UPON VOTE BEING TAKEN, MOTION CARRIED. 4-1. (KOHLS VOTED NAY) RESPONSE TO PREVIOUSLY RAISED COUNCIL COMMENTS AND REQUESTS MSA Account. Council received the report from Finance Director Johnson on the status of the City's Municipal State Aid (MSA) account and projects that are MSA eligible. No action taken. COUNCIL COMMENTS AND REQUESTS Wolcott asked for an update on the vacant firefighter position at the next meeting. Wolfe stated that it was a two step process. Wolfe and Schroeder updated the Council on other open positions. PAY BILLS MOTION BY SHIELY, SECONDED BY KOHLS, TO APPROVE PAYMENT OF CHECK NUMBERS 107723 TO 107915 IN THE AMOUNT OF $452,340.07. MOTION CARRIED. 5-0. , ., WORKSHOP SESSION - OPEN TO THE PUBLIC Regular Meeting — May 19, 1999 Cottage Grove City Council Page 12 Receive information and discuss status of Washinc�ton County HRA Municipal Service Char_cLe Agreements. Schroeder updated the Council on the status of the HRA as outlined in Liz Johnson's memorandum dated May 13, 1999. He stated that because of Liz's work, there was now a better understanding of what the HRA wants. Wolcott asked if the bonds sold a number of years ago at a high interest rate could be called in. Schroeder stated that they had been out for years, yet and could not be pulled in. Denzer stated that it was his opinion that the HRA ought to live up to the original contract negotiated with the City. Neither he, Kohls, Shiely nor Rice was willing to waive pilot payments. After further discussion, Wolcott agreed that he was not willing to waive pilot payments either. Hold discussion and give direction on annexation inquiry from Mr. Gordon Nesviq of Grey Cloud Township. � Mr. Nesvig outlined his plans and expressed his desire for the City to accommodate development on Lower Grey Cloud Island. He covered the history of where he had been with his project in the past years and where he was now. He asked the Council to consider annexation to the City. He stated his needs for sewer and water service. The Council Members raised questions relating to access of Lower Grey Cloud Island by car, in addition to other issues. They also asked about quotes from news sources that had been attributed to him, and their impact on both parties. They voiced concerns with his plan. Wolcott said he would need more information prior to making any decision. WORKSHOP SESSION - CLOSED OT THE PUBLIC - None. ADJOURNMENT MOTION BY SHIELY, SECONDED BY RICE, TO ADJOURN THE REGULAR COUNCIL MEETING AT 11:55 P.M. MOTION CARRIED. 5-0. Respectfully submitted, Deb Hawkinson � Recording Secretary TimeSaver Off Site Secretarial, Inc.