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2025-07-16
1 COTTAGE GROVE CITY COUNCIL July 16, 2025 COUNCIL CHAMBER - 7:00 PM 1 Call to Order 2 Pledge of Allegiance 3 Roll Call 4 Open Forum 5 Adoption of Agenda 6 Presentations A 2025 Green Garden Award Presentation Staff Recommendation: Receive presentation of the 2025 Green Garden Awards from Park and Recreation staff and award Jan Liedle the winner of the Residential Garden Award and Steven Rudberg the winner of the Sustainability Garden Award. B MN Recreation and Park Association Awards of Excellence Staff Recommendation: Accept MN Recreation and Park Association Awards of Excellence. C Proclamation - Parks and Recreation Month Staff Recommendation: Proclaim the month of July 2025, as Parks and Recreation Month. D Proclamation - Night to Unite Staff Recommendation: Proclaim Tuesday, August 5, 2025, Night to Unite in Cottage Grove. 7 Consent Agenda A City Council Special Meeting Minutes (2025-06-04) Staff Recommendation: Approve the June 4, 2025, City Council Special Meeting Minutes. B City Council Regular Meeting Minutes (2025-06-04) Staff Recommendation: Approve the June 4, 2025, City Council Regular Meeting Minutes. C City Council Special Meeting Minutes (2025-06-18) Staff Recommendation: Approve the June 18, 2025, City Council Special Meeting Minutes. D City Council Regular Meeting Minutes (2025-06-18) Staff Recommendation: Approve the June 18, 2025, City Council Regular Meeting Minutes. E Economic Development Authority Meeting Minutes (2025-04-08) Staff Recommendation: Approve the April 8, 2025, Economic Development Authority Meeting Minutes. F Approval of Rental Licenses Staff Recommendation: Approve the issuance of rental licenses to the properties listed in the attached table. G Accept 2nd Quarter 2025 Donations Staff Recommendation: Approve Resolution 2025-98, Accepting donations received in the 2nd Quarter 2025. 2 H Grant Application - Spark Good Community (Walmart) Staff Recommendation: Authorize the Wellness Committee on behalf of City staff to apply for the Spark Good Community local grant through Walmart. I Single Occasion Gambling Permit - St. Rita Church Staff Recommendation: Authorize issuance of a single-occasion gambling permit to the Church of St. Rita to conduct a raffle, bingo, and pull tabs at 8694 80th Street South, Cottage Grove, MN on September 19-21, 2025. J Temporary Liquor License - St Rita's Church Staff Recommendation: Authorize issuance of a temporary intoxicating liquor license to the Church of St. Rita's for their fall festival located at 8694 80th Street South on September 19-21, 2025. K Massage Business License - Ross Albert Ulmer (8471 East Point Douglas Road South #105B) Staff Recommendation: Authorize issuance of a Massage Business License to Ross Albert Ulmer operating as Health Investments LLC at 8471 East Point Douglas Road South #105B, Cottage Grove, MN. L Massage Therapist and Massage Business License - Ruimin Jiang (8471 East Point Douglas Road South #105B) Staff Recommendation: Authorize issuance of a massage therapist and massage business license to Ruimin Jiang operating as Health Investments LLC, located at 8471 East Point Douglas Road South #105B, Cottage Grove, MN 55016. M 2025-2026 Sergeants Labor Contract - Uniform Card Addendum Staff Recommendation: Approve the uniform card Memorandum of Understanding as an addendum to the 2025-2026 Sergeants' labor contract. N 2025-2026 49ers Labor Contract - Cell Phone Addendum Staff Recommendation: Approve the Cell Phone Memorandum of Understanding as an addendum to the 2025-2026 49ers labor contract. O Firefighters Labor Contract (Fire Marshal) Memorandum of Understanding Staff Recommendation: Approve the Fire Marshal MOU as an addendum to the 2025-2026 IAFF, Local 2570 labor contract. P Accelerated Firefighter/Paramedic Program Agreement Staff Recommendation: Approve the Accelerated Firefighter/Paramedic Recruitment Program agreement for Phillip Wiggins. Q Fiserv Credit Card Payment Application Staff Recommendation: Staff recommends the approval of the Fiserv merchant processing application agreement and purchase of the credit card terminal equipment required for accepting payments. R River Oaks Used Mower Purchase Staff Recommendation: Authorize staff to purchase a used Toro 3550 from MTI Distributing for the amount of $24,046.88. S Hamlet Pond Quote Award Staff Recommendation: Adopt Resolution 2025-095 awarding the 2025 Hamlet Pond – Phase 2: Bank Grading and Sediment Removal project to New Look Contracting, Inc. in the amount of $114,481.25, and the appropriate officials are hereby authorized to sign all necessary documents to effectuate these actions. T 2024 Mill and Overlay Final Payment Staff Recommendation: Adopt Resolution 2025-096 approving the final payment to Bituminous Roadways, Inc. for the 2024 Mill and Overlay Project in the amount of $16,097.25. U High Zone Raw Water Main - Change Order #2 Staff Recommendation: Approve Change Order #2 for the reduction in casing pipe size from 42” to 36”. This will decrease the contract total by ($37,800.00) to a total revised contract amount of $4,894,098.00. 3 V Easement Acquisition - East Point Douglas Road and Jamaica Avenue Reconstruction and Signal Project (Holiday) Staff Recommendation: Approve the Stipulation of Settlement for Parcel 10 by and between Holiday Stationstores, LLC and the City, authorizing the execution of a Settlement Agreement and payment of the remaining balance of $132,000. W Irrigation Audits - Approval of Contractor Agreements Staff Recommendation: Approve the Agreements for Services with Ellis Irrigation and Lawn Pride Irrigation & Groundworks. X Accessory Structure - Conditional Use Permit and Variances (6255 Hadley Avenue) Staff Recommendation: 1) Adopt Resolution 2025-099 approving a conditional use permit to allow a total of 2,340 square feet of accessory structure square footage exceeding the maximum square footage by 340 square feet allowed within the R-2, Residential Estate Zoning District, and a variance to allow for an accessory structure to be located in the front yard at 6255 Hadley Avenue South. 2) Adopt Resolution 2025- 100 denying the variance request to allow for the exterior of an accessory structure in a residential district to be constructed of metal at 6255 Hadley Avenue South. 8 Approve Disbursements A Approve Disbursements Staff Recommendation: Approve disbursements from 06-13-2025 through 07-10-2025 in the amount of $8,839,571.42. 9 Public Hearings 10 Bid Awards 11 Regular Agenda 12 Council Comments and Requests 13 Workshops - Open to Public A Emergency Medical Services Update Staff Recommendation: Receive a presentation on EMS and provide feedback and direction. 14 Workshops - Closed to Public 15 Adjournment 1 City Council Action Request 6.A. Meeting Date 7/16/2025 Department Parks and Recreation Agenda Category Presentation Title 2025 Green Garden Award Presentation Staff Recommendation Receive presentation of the 2025 Green Garden Awards from Park and Recreation staff and award Jan Liedle the winner of the Residential Garden Award and Steven Rudberg the winner of the Sustainability Garden Award. Budget Implication Attachments None 1 City Council Action Request 6.B. Meeting Date 7/16/2025 Department Parks and Recreation Agenda Category Presentation Title MN Recreation and Park Association Awards of Excellence Staff Recommendation Accept MN Recreation and Park Association Awards of Excellence. Budget Implication N/A Attachments 1. Council Memo-Award of Excellence To:Honorable Mayor and City Council Jennifer Levitt, City Administrator From: CC: Zac Dockter, Parks and Recreation Director Brad Muckenhirn, Recreation Supervisor Molly Pietruszewski, Recreation Services Manager Date:July 1, 2025 Subject:MN Recreation and Park Association Awards of Excellence Introduction The MN Recreation and Park Association’s Awards of Excellence program recognizes agencies or organizations in Minnesota for outstanding achievements in parks, recreation, and leisure services. The Awards of Excellence are presented by Minnesota Recreation and Park Association. The major objective of the program is to increase public awareness and appreciation of the excellent parks, trails, and recreation services available in Minnesota. The MRPA Awards Committee scores and selects agencies for each award category annually. Cottage Grove Parks and Recreation staff is proud to announce being the recipient of two Awards of Excellence in 2025. Those awards are: Park and Facility – This award is for new or purposefully updated/changed initiatives completed in the year 2024. Park or facility design and development, grounds or facility maintenance, urban forestry, landscaping, or conservation projects that focus on community impact, sustainability and responsiveness to changing community or cultural needs. Cottage Grove received this award for its development of Glacial Valley Community Park. Programming and Events - This award is for new or purposefully updated/changed initiatives completed in the year 2024. Unique, creative recreation programming, special events, or community celebrations that are culturally relevant and reflect community character. Cottage Grove received this award for its development of the Cottage Grove Pickleball Program. Staff Recommendation Accept MN Recreation and Park Association Awards of Excellence. 1 City Council Action Request 6.C. Meeting Date 7/16/2025 Department Communications Agenda Category Presentation Title Proclamation - Parks and Recreation Month Staff Recommendation Proclaim the month of July 2025, as Parks and Recreation Month. Budget Implication N/A Attachments 1. July 2025 Parks and Recreation Month PROCLAMATION PROCLAIMING THE MONTH OF JULY 2025 AS PARKS AND RECREATION MONTH WHEREAS, parks and recreation are an integral part of communities throughout this country, including here in Cottage Grove; and WHEREAS, parks and recreation promote time spent in nature, which positively impacts health and wellness, improving the physical and mental health of people who live near parks; and WHEREAS, parks and recreation encourage physical activities by providing space for popular sports, hiking trails, biking and many other activities designed to promote active lifestyles; and WHEREAS, park and recreation programming and education activities, such as out-of-school time programming, youth sports and environmental education, are critical to childhood development; and WHEREAS, parks and recreation are fundamental to the environmental well-being of our community; and WHEREAS, parks and recreation are essential, adaptable and make our communities resilient in the face of natural disasters and climate change; and NOW, THEREFORE, the Mayor and City Council of the City of Cottage Grove, County Washington, State of Minnesota, hereby proclaim the month of July 2025 as Parks and Recreation Month. Passed this 16th Day of July 2025 ___________________________ Myron Bailey, Mayor 1 City Council Action Request 6.D. Meeting Date 7/16/2025 Department Public Safety Agenda Category Presentation Title Proclamation - Night to Unite Staff Recommendation Proclaim Tuesday, August 5, 2025, Night to Unite in Cottage Grove. Budget Implication N/A Attachments 1. Proclamation.Night.to. Unite.07.16.2025 PROCLAMATION Night to Unite WHEREAS, the Minnesota Crime Prevention Association, along with AAA of Minnesota/Iowa, and local law enforcement agencies are sponsoring a statewide program called Night to Unite on August 5, 2025; and WHEREAS, Night to Unite is designed to get to know one another in your neighborhood, build neighborhood involvement by bringing police and communities together, and to bring an awareness to crime prevention and local law enforcement efforts; and WHEREAS, Night to Unite supports the idea that crime prevention and community engagement is an inexpensive, effective tool in strengthening police and community partnerships; and WHEREAS, Night to Unite provides opportunities to celebrate the ongoing work of law enforcement and neighborhoods in Cottage Grove by working together to fight crime and victimization and increase public safety for all citizens; and WHEREAS, the citizens of Cottage Grove play an important role in assisting the Cottage Grove Police Department through joint crime, drug and violence prevention efforts. NOW, THEREFORE, I, Mayor Myron Bailey, do hereby call upon all citizens in Cottage Grove to participate in Night to Unite on August 5, 2025. FURTHER, LET IT BE RESOLVED THAT I, Mayor Myron Bailey and the City Council of the City of Cottage Grove, County of Washington, State of Minnesota, do hereby proclaim Tuesday, August 5, 2025, Night to Unite in Cottage Grove. Passed this 16th day of July 2025. _____________________________________ Myron Bailey Mayor 1 City Council Action Request 7.A. Meeting Date 7/16/2025 Department Administration Agenda Category Action Item Title City Council Special Meeting Minutes (2025-06-04) Staff Recommendation Approve the June 4, 2025, City Council Special Meeting Minutes. Budget Implication N/A Attachments 1. 2025-06-04 City Council Special Meeting CITY OF COTTAGE GROVE 12800 Ravine Parkway South Cottage Grove, Minnesota 55016 www.cottagegrovemn.gov 651-458-2800 Fax 651-458-2897 Equal Opportunity Employer COTTAGE GROVE CITY COUNCIL June 4, 2025 10857 Ideal Avenue South COTTAGE GROVE, MN 55016 SPECIAL MEETING – Utility and Engineering Building - 5:00 P.M. 1. CALL TO ORDER The City Council of the City of Cottage Grove, Washington County, Minnesota, held a special meeting on June 4, 2025, at the Utility and Engineering Building (10857 Ideal Avenue South Cottage Grove, MN 55016). Mayor Bailey called the meeting to order at 5:00 p.m. 2. Agenda Item A. Low Zone Water Treatment Plant Tour On June 4, 2025, a public tour was held at the Cottage Grove water treatment plant, offering community members an opportunity to learn about the facility's operations and the processes involved in providing clean, safe drinking water to the area. The tour started in the Utilities and Engineering Building, with a very brief schedule update of the treatment plant project. Following the schedule update, attendees of the tour walked over to the treatment plant and started with a review of the exterior site improvements. This included an update on the permitting status of Well 13. After the site update, the tour transitioned to the inside of the building. The tour followed the path of water through the facility, which included iron & manganese pretreatment, granular activated carbon PFAS treatment, chemical suite, and pump room. Before leaving the facility, members of the tour saw the pipe galleries in the basement of the building. After leaving the facility, staff discussed the plan for the vacant land north of the Utilities and Engineering Building, which is planned for the full relocation of the Public Works and Parks Maintenance Departments. Following this, attendees reentered the Utilities and Engineering Building to end the tour. During the course of the tour, staff answered questions from the public and City Council. These minutes serve as a summary of the key points discussed during the meeting. Minutes prepared by Ryan Burfeind, Public Works Director and Tamara Anderson, City Clerk. 1 City Council Action Request 7.B. Meeting Date 7/16/2025 Department Administration Agenda Category Action Item Title City Council Regular Meeting Minutes (2025-06-04) Staff Recommendation Approve the June 4, 2025, City Council Regular Meeting Minutes. Budget Implication N/A Attachments 1. 2025-6-04 City Council Meeting CITY OF COTTAGE GROVE 12800 Ravine Parkway Cottage Grove, Minnesota 55016 www.cottagegrovemn.gov 651-458-2800 Fax 651-458-2897 Equal Opportunity Employer COTTAGE GROVE CITY COUNCIL June 4, 2025 12800 RAVINE PARKWAY SOUTH COTTAGE GROVE, MN 55016 COUNCIL CHAMBER - 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 June 4, 2025, at Cottage Grove City Hall, 12800 Ravine Parkway. Mayor Bailey called the meeting to order at 7:00 p.m. This meeting is being recorded by TruLens Community Media, you can view City meetings live and replay them on Cable Channel 799, and the meetings are also streamed live and archived on the City of Cottage Grove’s YouTube channel. 2. PLEDGE OF ALLEGIANCE The audience, staff, and City Council Members stood and recited the Pledge of Allegiance. 3. ROLL CALL Tammy Anderson, City Clerk, called the roll: Mayor Bailey-Here; Council Member Clausen-Here; Council Member Garza-Here; Council Member Olsen-Here; Council Member Thiede-Here. Also present: Jennifer Levitt, City Administrator; Ryan Burfeind, Public Works Director; Zac Dockter, Parks and Recreation Director; Pete Koerner, Public Safety Director; Brad Petersen, Public Safety Captain; Korine Land, City Attorney-LeVander, Gillen & Miller, PA; Brenda Malinowski, Finance Director; Emily Schmitz, Community Development Director; Phil Jents, Communication Manager. 4. OPEN FORUM Mayor Bailey opened the Open Forum. As no one wished to address the Council, Mayor Bailey closed Open Forum. 5. ADOPTION OF AGENDA Motion by Council Member Olsen to adopt the agenda; second by Council Member Thiede. Motion carried: 5-0. 6. PRESENTATIONS A. Craig Woolery Scholarship Presentation (Public Safety Board) Staff Recommendation: Allow the Public Safety Board the opportunity to present the recipient with their scholarship award and give Council the opportunity to recognize her. Mayor Bailey said the first presentation is a very exciting one for us, the Craig Woolery Scholarship Presentation by the Public Safety Board. Sophia Nolte is going to be receiving that award tonight. So, Brad is going to start this presentation. City Council Meeting June 4, 2025 Page 2 of 14 Good Evening, Mayor, Council Members, guests, my name is Brad Petersen, I’m the Deputy Director of Public Safety. Tonight I have the honor of having the Public Safety Board, retired Director of Public Safety Craig Woolery in the house, and we have Sophia here, and we can formally award her with the scholarship. City Council Meeting June 4, 2025 Page 3 of 14 UMD. Our purpose in forming this scholarship is, as I told you outside, we want to see young people in this community who have that passion, that drive, that interest in some career path in the public safety realm, and this is a wonderful path. You know, you have the ability to pursue that with a little help, and I have to say, it’s not just Kim and I; our Cottage Grove Lions Club donated $2,000 this year and last year, we have several other notable members of the public, including Commissioner Bigham and her husband, John, who always make a donation. So, there’s been a lot of people who get behind this; a lot of it is because we all love Craig and Katie and his family, and we want to honor his legacy, but we also love this community, and he and his family gave so much to us, as a City, this is our opportunity to give a little something back. So, make us proud, okay? All right, thanks. Everyone applauded. Staff Recommendation: Motion to accept the Annual Comprehensive Financial Report for the year ended December 31, 2024. City Council Meeting June 4, 2025 Page 4 of 14 area of the City, and some things we look at every year. This year our rotating procedures included a walkthrough, or secret shop, so to speak, at the golf course, looking at their cash-receipting processes there, amongst other procedures. I’m happy to report that there were no Internal Control findings this year, and that means not only did we not identify an efficiency in the controls that we tested during our audit, but there were no material audit adjustments. Auditing standards require that if we as auditors propose an adjustment to the City’s financial information that rises above a certain materiality threshold, we’re obligated to report that as an Internal Control finding. So, it’s really a nod to staff that there no audit adjustment findings this year. •Accounting Policies New or Changed: New accounting standards implemented in the City’s financial statements, we’re required to communicate that to you; this year there was a new accounting standard implemented, GASB-101, Compensated Absences, and this is really looking at the cost that the City has or the liability that’s incurred by having compensated time off available to your employees. That type of leave has always been included in your financial statements, but this standard standardizes it across financial reporting for all governments, so everybody’s reporting the same type of thing as a liability. So, under this standard, any time there’s changes of leave policies or say, like a higher accrual level would be allowed to employees, it’s going to increase the liability to the City on your books. •Accounting Estimates in the Financial Statements: It’s just a reminder that if you look at your financial statements, not everything in there is a firm hard dollar, but there are some estimates included there. •Net Pension Liability: This is an actuarially determined estimate, and it’s based on the fact that City employees participate in the State Retirement Plan, PERA. PERA hires an actuary to calculate the Net Pension Liability for their plan as a whole, and then they divvy that liability out to all participating employers. So, based on the actuary’s calculation, the City of Cottage Grove at the end of 2024 had a $10.8 million Pension Liability, and this is something that’s paid off through your payroll cycles, through your regular contributions. PERA is not going to come knocking at your door and ask for a $10.8 million check next week, and this fluctuates wildly, depending on market conditions, employment levels, and whatnot. •Allowance for EMS/Ambulance Receivable: As I’m sure you know, when an ambulance run goes out and a bill gets created, 100% of that bill is not always collected, you’re restricted by Medicare and Medicaid rates and other factors. So, City staff need to look at the outstanding bills and estimate the portion of those that they truly believe to be collectible and what they think will need to be written down; so, that allowance for uncollectible fees there is an estimate in your financial statements. •Present Value of Lease Receivable, Lease Liability, and SBITA Liability: Anytime the City has a contract that qualifies as a lease or similar item that has payments that continue out over time, you’re required to present value that and report it in your financial statements. An example of that would be your water tower antenna leases, you lease space on those water towers to cell phone companies, and they’ve got future committed payments; you have a receivable on your financial statements for the value of those. •No difficulties encountered in performing the audit. If we had encountered significant difficulties, we’d be communicating that to you. •No disagreements with management. Again, if we did have a difference of an opinion, we would make sure that you were aware of that. City Council Meeting June 4, 2025 Page 5 of 14 •Finally, any Other Matters; if anything came to our attention that we thought you should know about that didn’t qualify for reporting in any of the other buckets of our reports, we would include it in this letter. This year there’s nothing included there, but just know that that is the spot where those type of communications would occur. Financial Highlights Moving on, I just have some high-level financial information. •The first is just recognizing the City’s property tax collection rate, 99.42% for 2024, that’s a great collection rate. I audit a lot of cities around the metro area, and this is one of the higher ones I’ve seen this year, so good news for the City. •Looking at the City’s Fund Balance, as you may recall it’s important for the City to hold some reserves because one of your primary sources of funding is property taxes, and you receive those payments twice a year. So, the funds that you have on hand at the end of one year need to get you until halfway through the next year before that first property tax payment comes in, and then again, you need to have enough on hand to get to the end of that year. So, the City’s developed a policy that says you would have 45%-to-55% of the next year’s budgeted expenditures held in reserve at the end of the year. For 2024, your General Fund unassigned fund balance, that reserve, was equal to 48.2% of the budgeted expenditures for 2025, so right within that range. I know this time of year we’re looking ahead to the 2026 budget, so just a reminder that you can see on here that 48.2% is equal to about $13.7 million. If you held that fund balance number at $13.7 million year over year over year, pretty soon you’re not going to be at 48% anymore; especially in times of rising costs, that fund balance amount does need to rise along with your budget. As you can see here, I’ve got a Budget to Actual slide for the General Fund. The first column is your Original Budget, that’s the budget you would have approved at the end of 2023. Your Final Budget includes Budget Amendments that were done over the course of the year, then your Actual column, and then finally your Variance. I will point out in the Intergovernmental Revenues row, you will see that it was under budget by about $417,000; that simply relates to the timing of some Police Aid that the City received, I believe it was budgeted in 2024, but it was actually received in 2023. Looking at Expenditures, you’ll see Expenditures were under budget by almost $900,000. In talking to City staff about what happened here, there are various factors, but ultimately the message I heard was just really great fiscal responsibility across all departments, that everybody was doing a nice job adhering to their budget and being respectful with spending. So, at the end of the day, the City had a positive increase in Fund Balance of about $151,000. General Fund Expenditures by Function This slide is so you can see where those expenses are going. That green bar in the middle is Public Safety; Public Safety is very important but also expensive, it’s a big portion of the City’s budget. General Fund Revenues, Expenditures, and Fund Balance That green line you see is Total Revenues, the blue bar is Total Expenditures, and the gray bar is Fund Balance. You can kind of see how your Fund Balance compares to the Expenditures it needs to cover and how your Revenue is covering your Expenditures. Proprietary Funds The City’s business-type funds, or proprietary funds, are intended to be self supporting over time. It doesn’t mean that they can never show a loss, but just generally over time they’re intended to support themselves. The green line here is your Operating Revenue, that blue bar is your Operating Expenses (payroll, supplies, materials, those types of things) and the gray portion of that bar is Depreciation Expense. The reason we’re showing that on here, because especially in some of these business-type operations, future capital costs are expensive, and so you want your Operating Revenue to cover your Operating Expenses but also have a gap so that you can be saving for future capital needs. Streetlight Fund: You can see your Operating Revenue is covering your Operating Expenses, but not quite your depreciation. So, what that means is your Operating Revenue isn’t covering the historical cost of capital and you know the future cost of capital is going to be more expensive than the old stuff was, generally. So, as you head into the 2026 budget cycle, and I believe there’s a rate study coming that’s going to look at this, just be aware of the City Council Meeting June 4, 2025 Page 6 of 14 need to be covering your costs in this area. Streetlight Fund-Unrestricted Net Position: This is the component of Fund Balance that you have available in that fund. City Council Meeting June 4, 2025 Page 7 of 14 what I’m going to ask you is in your professional opinion, when you look at this sort of data, how alarmed do you get? Is it like, oh, my goodness, we’re in a world of pain, or hey, we need to make some adjustments here? City Council Meeting June 4, 2025 Page 8 of 14 Mayor Bailey said I’ll piggyback on the EMS situation because as it was kind of alluded; and thank you, by the way, for the audit, thank you, Brenda, and all of our staff for doing such a great job of managing the budgets. Every department to be under budget is pretty amazing, I’ll just say that right off the bat. It does go to this testament I’ll say as Mayor, that we’re always very, very careful with the taxpayer dollars in this community, and that slide definitely shows it. 7. CONSENT AGENDA City Council Meeting June 4, 2025 Page 9 of 14 K. Adopt Resolution 2025-078 awarding the 2025 Sewer Cleaning Contract to Pipe Services in the amount of $89,840.52 for the material and labor to clean sewer lines and authorize the Service Agreement between Pipe Services and the City of Cottage Grove. L. Authorize Service Agreement with Gunnar Electric for the amount of $22,830 to install the Hearthside Park sports lighting system. M. Authorize Service Agreements, subject to minor adjustments by the City Attorney if needed, for the Woodridge Park Ice Rink/Sport Court Dasher Board System project with Becker Arena Products for $89,574. N. Adopt Resolution 2025-080 approving the Second Amendment to the Purchase Agreement between the City of Cottage Grove and Roers Cottage Grove Apartments, LLC, extending the closing date for Outlots A, C, and D of Frattalone’s Southpoint Ridge plat to September 30, 2025. None of the Council Members wished to pull any Items for further discussion and/or approval. Motion by Council Member Thiede to approve the Consent Agenda; second by Council Member Clausen. Motion carried: 5-0. 8. APPROVE DISBURSEMENTS A. Approve disbursements for the period of 5-16-2025 through 5-29-2025 in the amount of $3,887,846.68. Motion by Council Member Olsen to approve disbursements; second by Council Member Garza. Motion carried: 5-0. 9. PUBLIC HEARINGS - None. 10. BID AWARDS - None. 11. REGULAR AGENDA A. ISD #833 Transition Building - 7000 Jamaica Avenue South Staff Recommendation: Adopt Resolution 2025-081 approving the Variance from the maximum impervious surface standard in the R-3 Zoning District based on the findings, and the Site Plan Review and Conditional Use for an 8,374 square-foot addition and site improvements for an Educational Facility located at 7000 Jamaica Avenue South. Mayor Bailey said our next item is about the Independent School District 833 Transition Building, 7000 Jamaica Avenue South. Emily Schmitz, our Community Development Director, is going to walk us through this one. So, welcome. Director Schmitz said Good Evening, Mayor and Council. The next item on your agenda for consideration is a School District project; we were originally calling it a transition project, but it’s to move their Next Step Program, currently at two different locations, to what was previously the home of Light the Way Church at 70th Street and Jamaica to utilize that site for that program. As a part of that, they need some additional space on the site. They are proposing about an 8,000-square-foot addition to the building to support a cafeteria, some additional office spaces, and other specific spaces there for the programs that they offer to those 18-to-21 years of age for additional life skills, some career training, and then some independent living skills as well. City Council Meeting June 4, 2025 Page 10 of 14 This site is zoned R-3, which is Residential. We do allow for educational facilities as a Conditional Use Permit (CUP) in our R-3 Zoning Districts. City Council Meeting June 4, 2025 Page 11 of 14 those kinds of things. So, what do we know about supervision or any kind of, I don't know if this is the right word, but containment to ensure that we keep people safe, especially next to a County Road like 70th Street that’s busy. Anybody want to field that for me? City Council Meeting June 4, 2025 Page 12 of 14 Mayor Bailey replied awesome, thank you. That was my question, we have some interest in redevelopment, as you know already, so, thank you. 12. COUNCIL COMMENTS AND REQUESTS City Council Meeting June 4, 2025 Page 13 of 14 up the chairs and take them back, etc. But it was a great day, and a lot of credit to the people who were there to make that happen. City Council Meeting June 4, 2025 Page 14 of 14 some of the legislative sessions, and it was really, really promising related and surrounding to housing. So, as much as we’re hearing within the news and social media and all the things that are happening right now, I felt good to hear that they are still moving right ahead to make sure that housing is affordable for people, and they’re just working hard on that. It just seems like that hasn’t been forgotten, and I’m really happy to be able to share that with you all; so, that was a really great takeaway to know that we are still working hard on making sure housing is affordable. Wild Robot. I’ve seen it online, I haven’t seen the actual movie yet, though, so that’s going to be a great opportunity. I encourage everyone to come out, it’s always kind of fun, especially when the weather’s nice. Bring your blanket, there are some free items out there for people to do, some food. 13. WORKSHOPS - CLOSED TO PUBLIC - None 14. WORKSHOPS - OPEN TO PUBLIC - None. 15. ADJOURNMENT 1 City Council Action Request 7.C. Meeting Date 7/16/2025 Department Administration Agenda Category Action Item Title City Council Special Meeting Minutes (2025-06-18) Staff Recommendation Approve the June 18, 2025, City Council Special Meeting Minutes. Budget Implication N/A Attachments 1. 2025-06-18 City Council Special Meeting CITY OF COTTAGE GROVE 12800 Ravine Parkway Cottage Grove, Minnesota 55016 www.cottagegrovemn.gov 651-458-2800 Fax 651-458-2897 Equal Opportunity Employer COTTAGE GROVE CITY COUNCIL June 18, 2025 12800 RAVINE PARKWAY SOUTH COTTAGE GROVE, MN 55016 TRAINING ROOM - 6:00 P.M 1. CALL TO ORDER The City Council of the City of Cottage Grove, Washington County, Minnesota, held a Special Meeting on June 18, 2025, at Cottage Grove City Hall, 12800 Ravine Parkway. Mayor Bailey called the meeting to order at 6:00 p.m. 2. WORKSHOP - OPEN TO PUBLIC A. Cordenio Severance House (Cedarhurst) Proposed Event Center Staff Recommendation: Receive an overview of the proposed rehabilitation of the building and site located at 6940 Keats Avenue (Cedarhurst) for use as an Event Center. Mayor Bailey stated welcome, we’re glad to have you guys here. I’ll kick it over to Emily Schmitz, our Community Development Director, who will get us going here. Director Schmitz stated Mayor and Council, we’ve got a great team here today, who is working on a project to restore the Cedarhurst Mansion. They have a lot of details to share with you and they are looking forward to understand what it takes to restore the mansion, the historic amenity of the building, and so they will outline that for you today and that will also help you understand what their goal of this project is, right? So, I will turn it over; we’ve got folks from Bellagala and AWH as well as T & I Construction Services for the workshop. Mayor Bailey said fantastic. Well, welcome. Thank you, Mayor Bailey and Council. I’m Ben Wickstrom, I’m here representing Bellagala. I’m a consultant, but I’ve been involved with their projects and the founder and owner, Tim George, for about eight years now. Tim founded the company in 2004, I believe, and they have six venues around the Twin Cities, a couple in downtown St. Paul, more urban and rooftop-type venues and things like that. They purchased the Van Dusen Mansion in Minneapolis, which was weeks or months from demolition, and stepped in and restored that historic building. It’s a little trickier site, it’s on half of a city block, but there’s a terrace, a courtyard, and everything, so it’s a little different from the more urban St. Paul location. The three other venues are part of Bavaria Downs, out in Chaska, which is sort of the opposite, it’s on 260 some acres. The city was very excited to have Tim come in and I will say restore it, as it was a historic building, but it was an older mansion that was getting a little worn out. It had been on the market on and off for about 12 or 14 years, and they restored that mansion, that’s one venue there. They took the outbuilding and some horse stables and made them into a beautiful thing called Equestria, a little different choice out there. Then the third venue there is the Woodland Glasshaus, which is an atrium, an all-glass structure, so that’s a third option. The Van Dusen Mansion and some components of Bavaria Downs we think have some parallels here. When Cedarhurst became available, it was sort of a dream addition to his portfolio, I think, and Tim and his business partner, Jane, are really excited about this one. So, I think we had a good meeting with the Historic Preservation Committee last week. I will touch on just a couple of things that I’m sure you have questions about regarding the operation and the use, which will probably come into play for the Conditional Use Permit. I’ll turn it over to Lawrence and Jacob or Mike and Ryan here. So, the plan is for one-to-two weddings a week, consistently, at Cedarhurst if we get our approval. We’re hoping to finish up construction and start hosting, I believe Tim said in City Council Special Meeting June 18, 2025 Page 2 of 9 August, 2026. One-to-two weddings consistently, I say that because the peak season, which is actually September, October, is probably up to four weddings per weekend. City Council Special Meeting June 18, 2025 Page 3 of 9 because he not only had extended experience, he needs to know more about this than any other member on the team. He’s about improvement and what part is real and what is replacement, so he’s at every meeting. City Council Special Meeting June 18, 2025 Page 4 of 9 matching the historic pattern of the brick, similar to what you’re seeing but without the diamond pattern in the middle, based on photos from the historic data that we have. Other than that, there’s wood rot and cracking and some replacing that has to happen, but more or less, the exterior of the mansion will remain pretty much kind of as it is. A lot of the wood siding is original, at least on the north, the east, and the south on that farmhouse. What do you know, the oldest piece of the building has the newest siding, so that will be staying, but most of the character of that mansion will remain. City Council Special Meeting June 18, 2025 Page 5 of 9 circulation, and you’ll see this on the next map, but again balance that needs to preserve what it is with accommodating the need for multiple people to be safe. So, now looking at the proposed plans as they are right now, the north side of the second floor will be the sort of Bride’s Suite, and the south side of the building will be the Groom’s Suite; and then kind of everywhere in between will kind of function as back of house spaces, storage. Generally speaking, just pointing out we are keeping really the general way out of the building pretty close to what it is, and that’s pretty important. So, this is a look at the Site Plan, and this will really just wrap everything up. Overall, the alterations, the accessibility routes, the wide surface road, the new addition, everything that you do to this site will be in line; it’s planned to be in line with the standards of rehabilitation in a way that they will accommodate the needs of this space as a wedding venue but also really preserve the legacy of the historic space and the general character of the property. And I guess one thing, as you guys are all familiar with and that we’ve come to learn about, we just want to acknowledge that we understand what this historic property is up against. It’s important that we do everything we can to protect this property from kind of being gobbled up by something like this and potentially erasing its history. It’s really our mission at AWH and Bellagala to build off of this sort of historic fabric that’s there and to really champion it. We’re really hoping to work with you and the community to preserve this property as a destination wedding venue, really a community asset, but also a traditional sort of touch point for this site in your history. City Council Special Meeting June 18, 2025 Page 6 of 9 consider it, so. And, again, we’re open to suggestions from the Council and so forth, but it is an option that we’re looking at. City Council Special Meeting June 18, 2025 Page 7 of 9 of history just for people to look at; assuming we can make that basement a place where people will actually want to go down there because right now, nobody wants to go down there. City Council Special Meeting June 18, 2025 Page 8 of 9 Council Member Olsen asked so, if you’re putting in, for lack of a better phrase, a commercial kitchen, is that what you’re going to do? City Council Special Meeting June 18, 2025 Page 9 of 9 The requirements it has have to protect the environment, and the Watershed is in play here and there’s the drinking water, that’s another requirement, as well as the stormwater. And so these things are at a higher level of complexity than a normal site would have. So, I just wanted to go through that, the other civil items that are going to have some possible costs related to this include the utilities and septic as well. So, as we work through these, we have to look at those markers and figure out how we navigate through that. So, it’s not really at the top of your mind, but these are the things shown on that map. 3. ADJOURNMENT 1 City Council Action Request 7.D. Meeting Date 7/16/2025 Department Administration Agenda Category Action Item Title City Council Regular Meeting Minutes (2025-06-18) Staff Recommendation Approve the June 18, 2025, City Council Regular Meeting Minutes. Budget Implication N/A Attachments 1. 2025-6-18 City Council Meeting CITY OF COTTAGE GROVE 12800 Ravine Parkway Cottage Grove, Minnesota 55016 www.cottagegrovemn.gov 651-458-2800 Fax 651-458-2897 Equal Opportunity Employer COTTAGE GROVE CITY COUNCIL June 18, 2025 12800 RAVINE PARKWAY SOUTH COTTAGE GROVE, MN 55016 COUNCIL CHAMBER - 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 June 18, 2025, at Cottage Grove City Hall, 12800 Ravine Parkway. Mayor Bailey called the meeting to order at 7:00 p.m. This meeting is being recorded by TruLens Community Media, you can view City meetings live and replay them on Cable Channel 799, and the meetings are also streamed live and archived on the City of Cottage Grove’s YouTube channel. The other thing I want to do before we get the meeting rolling, I think it’s only fitting as out in the entryway you can see, if everybody were to look behind you, we’ve got a bunch of police officers here this evening, and we had a very unfortunate event this weekend where there were some shootings of some elected officials within the State of Minnesota. I thought it would be appropriate, first of all, to thank our officers out there, some of them may have been out searching for the perpetrator, but also the ones that were making sure that all of us were safe as electeds because who knew, right? We didn’t have a list. But I did want to do a moment of silence, if you would join me in that, for Melissa and Mark Hortman, who obviously lost their lives, she was the Speaker of the House; and then John and Yvette Hoffman, who are still recovering, but thank goodness it appears that they’re going to successfully recover from the multiple gunshot wounds that they had from this individual. So, if you would join me in a moment of silence where we remember these individuals. Thank you. 2. PLEDGE OF ALLEGIANCE The audience, staff, and City Council Members stood and recited the Pledge of Allegiance. 3. ROLL CALL Tammy Anderson, City Clerk, called the roll: Mayor Bailey-Here; Council Member Clausen-Here; Council Member Garza-Here; Council Member Olsen-Here; Council Member Thiede-Here. Also present: Jennifer Levitt, City Administrator; Ryan Burfeind, Public Works Director; Zac Dockter, Parks and Recreation Director; Pete Koerner, Public Safety Director; Mike McCormick, Public Safety Sergeant; Korine Land, City Attorney-LeVander, Gillen & Miller, PA; Brenda Malinowski, Finance Director; Emily Schmitz, Community Development Director; Samantha Pierret, Senior Planner; Phil Jents, Communication Manager. 4. OPEN FORUM Mayor Bailey opened the Open Forum. As no one wished to address the Council, Mayor Bailey closed Open Forum. 5. ADOPTION OF AGENDA Motion by Council Member Thiede to adopt the agenda; second by Council Member Garza. Motion carried: 5-0. 6. PRESENTATIONS City Council Meeting June 18, 2025 Page 2 of 21 A. Sergeant Promotion - Swearing In and Badge Pinning of Officer Matt Sorgaard Staff Recommendation: Allow the Swearing In (Oath) and Badge Pinning of Matt Sorgaard to the position of sergeant. Mayor Bailey said the first presentation is a very special one, the swearing in and badge pinning of Officer Matt Sorgaard, which is why we have so many police officers here. So, if all of you officers would like to come in, please do so. Council, we’ll go down in front of the dais along with Jennifer, our City Administrator, who will be the swearing in, and I’ll turn it over to Pete. Director Koerner said Good Evening, Honorable Mayor and Council, this is an exciting night. I apologize, we have a lot of our S.W.A.T. people in from our practical, so there’s a lot of sweat, it was a little warm out at our practical tonight. With that, this evening we will formally recognize Matt Sorgaard as we celebrate his promotion to Police Sergeant. Matt will serve as the front-line leader, directly engaging with our community and modeling our organizational Core Values of empathy, accountability, trust, and transparency, just to name a few. We’re proud to promote Matt to the rank of sergeant, the leadership team supports this decision, and we are confident that his transition to the leadership team will be a valuable addition as we continue to grow and evolve as a progressive and resilient organization. In a moment, City Administrator Jennifer Levitt will administer Matt’s oath. Prior to that, I’m going to read a short bio, I had Matt put it together, so bear with me; it’s even stapled, Matt, but it’s actually the font, I had to increase it, so I did kind of ad lib on this, Matt, just to warn you upfront. Matt grew up in the area of Maplewood and Oakdale but now calls Cottage Grove his home. When I asked him to do his bio, what I thought was interesting was none of his career things were listed first; he honestly right away was quick to list his wife, Jessie, his two children, Hadley and Mason, his Chocolate Lab, Koda, and of course his K-9 partner, Odin. I don’t know what the list was, it could have been Koda was number one, I don't know, but he listed his whole family as his priority. Matt had a life outside of law enforcement, he worked in the banking industry, so that’s where he got a lot of his customer service. He has his Bachelor’s Degree from Metropolitan State University, started his law enforcement career as a volunteer Reserve with the City of North St. Paul, I know that’s when I first met you, Matt, when you were hanging out with some of those officers. We hired him nine years ago already with Cottage Grove, and in that time, Matt’s been involved in a lot: He was an Explorer adviser, did compliance checks, both alcohol and tobacco, Drug Recognition Expert, S.W.A.T. team member, Field Training Officer, Use of Force Instructor, and his most current role is a K-9 handler to Odin, and he will still have Odin with him, so there won’t be any changes to that. Outside of work, Matt and his wife do a lot of running of the kids to sports. He likes to find random projects; I agree, Jessie, those aren’t necessary, he just does them to keep busy, right? And he has just a lot of excuses to get down to Menards and that’s not bad. When he’s not doing that, he likes to play softball with his friends, golfing, he does a lot of yard work, and enjoys training with Odin. Pinning his badge in a moment will be his daughter, Hadley, with the supervision of his son, Mason. So, with that, I will turn it over to City Administrator Levitt. Administrator Levitt asked Matt to please raise your right hand and repeat after me: I, Matthew L. Sorgaard, do solemnly swear that I will support the Constitution of the United States and of the State of Minnesota, and faithfully discharge the duties of the position of Police Sergeant for the City of Cottage Grove, in the County of Washington, and State of Minnesota to the best of my judgment and ability so help me God. Administrator Levitt congratulated Matt and shook his hand, and everyone applauded. Sergeant Sorgaard shook hands with Mayor Bailey and each of the Council Members. Director Koerner said with that, we’ll have Hadley come up with Mason. Hadley pinned her dad’s badge and everyone applauded. Photographs were taken of Sergeant Sorgaard, his family, all police officers, Mayor Bailey and the Council Members. B. Strawberry Festival Presentation Staff Recommendation: Receive Strawberry Festival presentation. City Council Meeting June 18, 2025 Page 3 of 21 Mayor Bailey said our Communications Manager, Phil Jents, is going to walk us through some of the festivities that are going to be happening as early as tomorrow. •New this year is the Drone Show, I believe Council Member Thiede may have an exciting update on that front, I won’t go into details there, but nevertheless, the Drone Show on Friday night is very exciting. •The parade is Saturday at 10:00 a.m., keep an eye out for our friend, renowned folk artist Eric Dowdle, he is joining us for Strawberry Fest and I believe will be joining Mayor Bailey in the parade, which is very exciting. •The Mega Jump Motivational Experience is on Saturday, from noon to 3:00; as I understand it, it is a high energy mobile jump show, which if the pictures do it any justice, looks very fun to look at. •Of course, the fireworks on Saturday evening at 10:30 p.m. •The carnival will be open Thursday through Sunday. •Then, of course the Strawberry Fest buttons are for sale: They are $5 each, and I understand there’s a lot of really great prizes this year. The drawing will take place on June 23, following the coronation, and I’m told that you do not need to be present to win that drawing. Buttons are for sale at the Cottage Grove Public Safety Department, Old National Bank in St. Paul Park, and from one of the 11 Ambassador Candidates. •Any event with live music is A-okay in my book, so bands that are performing at Strawberry Fest throughout the weekend: Basic and Boring will be playing the Family Night on Thursday, and some may remember that band from last year’s Food Truck Festival, so we’re very excited to bring them back to Cottage Grove. On Friday, we have Double Down from 5:00 to 7:00 p.m.; closing it out on Friday night is Rough House. On Saturday, Jonah and the Whales and Them Pesky Kids are closing things out on Saturday night. •Other events are on the screen before. There’s very fun and great stuff happening throughout the rest of the festival. The long list of ongoing events has everything from a car and pet show to demonstrations from our very own Public Safety staff, just to name a couple. The full list of events is at cottagegrovestrawberryfest.com/events. •Then last, and certainly not least, I would be remiss not to talk about Discover Cottage Grove; they’ll have a booth at the Strawberry Fields Marketplace this year. As I mentioned, renowned folk artist Eric Dowdle, we launched a Bring a Friend campaign for Strawberry Fest this year just to encourage people who maybe haven’t been to Strawberry Fest in a long time, people who live here who have some friends who want to come in from out of town to enjoy the festivities, so why not bring our own friend? So, we decided to bring Eric Dowdle back for Saturday; so, Saturday, June 21, he’ll be there to sell puzzles, sign puzzles, take selfies, and meet folks at our booth. As I mentioned, he’s also going to be in the parade on Saturday. We’ll be showcasing all of our 115 coloring contest submissions, myself and our staff put together the coloring contest for Strawberry Fest this year. I would have been happy with 30, 40, or 50 submissions, and we got 115, almost all of which happened on the last day of the submission, which is pretty wild and fun. So, all of those will be on display in a binder, and four of the finalists/winners will also be prominently displayed there with Eric Dowdle. •We’ll be giving away freebies for folks who come by the Discover Cottage Grove booth; we’ll have drawstring backpacks, Visitor Guides, Discover Cottage Grove beachballs, cups, and a flyer for the upcoming Food Truck Festival. City Council Meeting June 18, 2025 Page 4 of 21 Phil said that’s all I’ve got. Council Member Thiede, I don't know if I stole your thunder, so if I missed anything, please by all means fill in the blanks. Thank you. 7. CONSENT AGENDA City Council Meeting June 18, 2025 Page 5 of 21 B. Approve the May 21, 2025 City Council Regular Meeting Minutes. C. Approve the May 12, 2025 Parks, Recreation and Natural Resources Commission Meeting Minutes. D. Accept and place on file the minutes from the April 8, 2025 meeting of the Advisory Committee on Historic Preservation. E. Approve the November 26, 2024 Convention and Visitors Bureau Meeting Minutes. F. Approve the issuance of rental licenses to the properties listed in the attached table. G. Receive the 2025 Strategic Plan mid-year update. H. Approve the 2024 Convention and Visitors Bureau Annual Report. I. Approve the Reciprocal Fire Service Agreement with the Capital City Regional Firefighters Association. J. Authorize Public Safety to accept up to $7,500 for a UASI Grant through the Washington County Department of Emergency Management to fund the purchase of water rescue equipment. K. 1) Approve Flock/LPR Camera Master Services Agreement. 2) Accept $18,000 from the Automobile Theft Prevention Grant Award over 2 years. L. Approve the Professional Services Contract with HumeraTech for the City of Cottage Grove buildings in the amount of $7,430.40. M. Adopt Resolution 2025-086 approving the final payment for the TG-P14 Pond Improvements Project to Northern Lines Contracting in the amount of $90,492.33. N. Adopt Resolution 2025-085 accepting Braun Intertec’s proposal to provide testing services for the Intermediate Zone Water Treatment Plant Project for the total amount of $269,498.00. O. Approve Change Order #7 for the Utility and Engineering Building, which results in a reduction in project costs in the amount of $6,981.60. P. Authorize Resolution 2025-087 naming the future neighborhood park at Robert’s Lake “Roger & Myra Peterson Park.” Q. Adopt Resolution 2025-090 approving the final payment in the amount of $113,120.05 to SunRam Construction, Inc. for the Glacial Valley Park Improvements Project. R. Appoint John Stechmann to fill an unexpired term on the Planning Commission ending on February 27, 2027. Council Member Olsen wished to pull Item R, Planning Commission Appointment (Stechmann), on the Consent Agenda for further discussion and/or approval. Council Member Olsen said we had an opening on the Cottage Grove Planning Commission. As many of you know, we have several volunteer advisory commissions to the City Council that are staffed by volunteers from the community, who want to give back and provide advice to us as a Council, whether it’s about Parks and Recreation, Historic Preservation, Planning, Public Services, and so on. It just so happens this year I am the liaison to the Planning Commission and we had an opportunity for a new member to potentially join. So, this last week I did interviews with two very good candidates, and I want to thank John Stechmann and Casey Thompson for putting their names forward as potential Planning Commissioners. It was a tough decision, but I selected John Stechmann for this appointment, and I would just ask that my Council colleagues take that under advisement. John has been a longtime resident of the City of Cottage Grove, he has a lot of good experience working with cities because he works for the City of St. Paul as an attorney. So, he’s kind of seen the world from both sides, as a resident and somebody who works for a community. He’s a very level-headed guy, very knowledgeable about the things that we’ve got going on in the community, and he’s definitely got his finger on the pulse. So, I would ask for your consideration to appoint John to the open Planning Commission slot; and, certainly, we’re going to continue to work with Casey to find a good spot for him, too, because both interviews were just wonderful. That’s all I’ve got, mayor. Motion by Council Member Olsen to approve the Consent Agenda; second by Council Member Clausen. Motion carried: 5-0. City Council Meeting June 18, 2025 Page 6 of 21 8. APPROVE DISBURSEMENTS A. Approve disbursements for the period of 5-30-2025 through 6-12-2025 in the amount of $1,597,795.82. Motion by Council Member Garza to approve disbursements; second by Council Member Thiede. Motion carried: 5-0. 9. PUBLIC HEARINGS Mississippi Landing 1st Addition Easement Vacation Staff Recommendation: 1) Hold the Public Hearing. 2) Adopt Resolution 2025-088 vacating, rescinding, terminating and releasing certain easements over Outlot I in Mississippi Landing 1st Addition. Mayor Bailey said Emily Schmitz, our Community Development Director, is going to walk us through this fairly simple one. Director Schmitz said great, Good Evening, Mayor, Council, it’s a simple easement vacation. Typically, with our developments where we have several different additions, there’s always an Outlot that’s platted that is, for lack of a better word, held for that next addition when those lots are platted over that. So, Mississippi Landing 1st Addition was approved by you, Council, back on May 1, 2024, and now you have seen the 2nd Addition come before you, which you approved on April 2, 2025. However, a D&U Easement exists over Outlot I, which is a part of Phase 2 of the Mississippi Landing. In order to record those lots over that Outlot, we do need to vacate that Drainage and Utility Easement that allowed us to have access if we needed it for potential utilities or stormwater before those lots would have been platted. So, in an effort to allow that developer to record that plat this evening, the recommendation is to hold that Public Hearing and vacate that Drainage and Utility Easement that is existing over Outlot I. I will stand for any questions if you do have them. Mayor Bailey asked Council if there were any questions, and there were none. Mayor Bailey opened the Public Hearing. As no one wished to speak on this item, Mayor Bailey closed the Public Hearing. Motion by Council Member Clausen to Adopt Resolution 2025-088 vacating, rescinding, terminating and releasing certain easements over Outlot I in Mississippi Landing 1st Addition; second by Council Member Thiede. Motion carried: 5-0. A. Intermediate Zone Water Treatment Plant - Bid Award Staff Recommendation: Adopt Resolution 2025-084 awarding the Intermediate Zone Water Treatment Plant Project for the Base Bid and Alternate 1 to Rice Lake Construction Group, in the total amount of $90,135,600.00. Mayor Bailey said Ryan Burfeind, our Public Works Director, is going to take us through this one. Director Burfeind said Mayor, Members of the Council, so tonight, first we have the Intermediate Zone Water Treatment Plant bid award. We took bids on this a few weeks ago. This was a big day for the City, we’ve been City Council Meeting June 18, 2025 Page 7 of 21 working on this plant, really at some levels since 2017 when the first kind of PFAS situation really boiled up in Cottage Grove. We started looking at Concept Planning, Long-Term Planning, and how to address this issue. Through the entire Conceptual Drinking Water Supply Plan from 2018 to 2021, we were working with the State on this, and then going all the way through design. So, this is almost eight years in the making from lots of staff at the City. So, it was a big effort and it’s very exciting to take bids. Staff Recommendation: Adopt Resolution 2025-089 awarding the 2025 Sewer Lining Project to Hydro-Klean, LLC, for the Total Base Bid amount of $779,748.90. City Council Meeting June 18, 2025 Page 8 of 21 worked with all the property owners, we notified them of what’s going to happen, and that’ll probably be late August into this fall when they’ll do the work. There are two other ways into that development commercial area, so there’s really no major impacts, everything else will be a variety of kind of drive-over ramps and things like that. So, it’s pretty interesting where you’ll actually see an 18-inch pipe on the ground that temporarily bypasses this work, and then we’ll actually be directionally drilling it underneath the roundabout. So, we obviously didn’t want to close the Jamaica roundabout to bypass pump sewage across it, so we’re actually putting a temporary pump underground. It’s a complicated project, but our team did a really good job of putting it together. I don’t usually go into that level of detail, but I just want you to see it’s so short and so quick, but it was a challenging project to design so we’re excited to get it done. 11. REGULAR AGENDA Staff Recommendation: 1) Allow a business representative for Highnorth Dispensary an opportunity to respond to the City Council regarding the Cannabinoid & Low Potency THC Underage Sale Compliance Check Violation occurring May 21, 2025. 2) Impose the scheduled penalty, for the 2nd violation in a 24-month period, of $1,000 fine plus a three-day suspension. City Council Meeting June 18, 2025 Page 9 of 21 say well, they threw a hat on, or it’s not somebody we recognized. They’re instructed that if asked, they are to state their real age; at no time are they allowed to be deceitful, they have to be truthful. Our goal with our compliance checks has always been education, more than anything else. They’re instructed to provide their Minnesota State-issued identification card or picture driver's license and make sure that it has their true identity and date of birth on it. We also make sure that we have that on file should something like this come up. They’re provided with a monetary note, in this case it was a $20 bill. Prior to that being given to our decoy, the officers also take pictures, front and back, to make sure that the serial number lines up with that monetary unit. City Council Meeting June 18, 2025 Page 10 of 21 scheduled penalty for this, which is a $1,000 fine plus a three-day suspension. That three-day suspension, do we have purview over when that three days is? Do they get to choose, do we get to choose, how does that work? City Council Meeting June 18, 2025 Page 11 of 21 Mayor Bailey said thank you again, Mike, and I’ll say congratulations to all those other businesses that successfully passed. I’m very happy that they did, sometimes we don’t get to recognize the good ones, so we want to do that. Staff Recommendation: 1) Adopt Resolution 2025-082 approving an Amendment to the 2040 Comprehensive Plan to re-guide a 4.7-acre parcel from Medium Density Residential to High Density Residential, and authorize staff to submit the Amendment to the Metropolitan Council. 2) Adopt Ordinance No. 1101 approving a Zoning Amendment to change the zoning of the 4.7 acres from AG-2, Agriculture, to R-6, High Density Residential, contingent on the Metropolitan Council’s approval of the associated Comprehensive Plan Amendment. 3) Adopt Resolution 2025-083 approving the Site Plan Review for a 164-unit, four-story, affordable-rate, multifamily apartment building on an approximate 4.7-acre parcel located on the north side of the 100th Street and Hadley Avenue intersection. 4) Adopt Resolution 2025-092 supporting local Affordable Housing aid. City Council Meeting June 18, 2025 Page 12 of 21 Mayor Bailey said all right, thank you, Samantha. He asked if Council had any questions: City Council Meeting June 18, 2025 Page 13 of 21 Mayor Bailey asked the developer if they’d like to speak at all on this subject or the project, if there was anything they’d like to share, and they declined. Mayor Bailey asked if Council had any questions for the developer, and none were asked. 12. COUNCIL COMMENTS AND REQUESTS City Council Meeting June 18, 2025 Page 14 of 21 attempt to engage on social media where somebody may say something, they’re asking a question, and we try to give the information that they’re looking for, it can turn into a feeding frenzy of misinformation, negative commentary, what have you, and that’s just not the way to do things. That’s not. We need to be able to communicate with each other with respect and with dignity because what happens is that negativity proliferates. We see it at the Federal level, we see it all over the place, there’s going to be somebody out there who maybe isn’t okay in the head, who’s going to read what you have to say or perceive what you have to say differently than you intended it, and situations like what occurred over the weekend could be the end result. So, I just want to caution folks to take a beat, maybe wait a second before you type whatever it is you’re going to type into your Facebook or your Twitter, or you name it, there’s probably 17 other ones I don't even know about. You know, you’ve got your various neighbor pages and all those kinds of things. If you really, truly are curious and you want to know about how come you did something, how come this decision was made, just ask, we’re happy to tell you. We’ll sit down and have coffee with you, we’ll explain it to the best of our ability, and we may end up walking away agreeing to disagree, but at least we’ve had a productive dialogue. And I think if we could all do that a little bit better, maybe the world would be a little less dangerous place. And with that, mayor, I’ll turn it back to you. The Wild Robot, had to be changed because of rain and things like that. Council Member Garza said Friday it was raining. Council Member Olsen said you got rained out last year quite a bit, too, and Council Member Garza said we did, but we got four in, still, so cross my fingers. Council Member Thiede said so, I guess that’s been rescheduled to this Friday night, in two days. Council Member Garza said but it’s later, so it starts at 7:00, but the movie doesn’t start until 9:30 or so, so people can enjoy Strawberry Fest first, and then come and watch the movie. Council Member Thiede said all right, so, I guess that is all I have right now. 13. WORKSHOPS - OPEN TO PUBLIC - TRAINING ROOM Staff Recommendation: Receive National Community Survey Report. City Council Meeting June 18, 2025 Page 15 of 21 Phil Jents, Communications Manager, replied yes. Thank you, Honorable Mayor and Members of the Council, I will do my best to be efficient with time in the interest and respect of everyone’s time, but I have a lot of information to cover and a lot of data to go over. So, if you want to be thorough, maybe I should do the whole report, the results of the National Community Survey. the survey. The open-participation survey was open to all City residents and became available on April 10, 2025 and remained open for three weeks. I will also note the full open-survey results are in the material before you. City Council Meeting June 18, 2025 Page 16 of 21 are in the chart here. It’s just one of many ways to interpret the data and can be used to identify key findings and also determine which areas may need additional focus or resource allocation in the coming years and which others are performing well by comparison. There are just a couple standouts: The Economy, Utilities, Community Design, and a couple others you can see here in the chart that stand out. City Council Meeting June 18, 2025 Page 17 of 21 5. Mobility stands out as a key strength for the City. A large number of ratings related to mobility ranked higher than the national average, and these included ratings for ease of travel by car, public parking, traffic flow on major streets, ease of walking, and ease of travel by bicycle. Mobility-related services followed a similar trend with higher than average ratings for street cleaning, snow removal, sidewalks, and street repair. When asked about their opinion relating to taxes and services in Cottage Grove, about one-third, or 34%, said they are satisfied with the current level of taxes and services. A similar proportion, 32%, felt they paid too much for the services they receive. A few residents were willing to accept service reduction in exchange for lower taxes or to pay more taxes for enhanced services. A smaller share yet reported having no preference or having no opinion on this. For additional context, we also see here the ratings for one of the default survey questions, which asked residents to rate the value of services for the taxes paid to Cottage Grove. Results show that 9% of respondents rated this item as excellent, 44% as good, 27% as fair, and 20% as poor. For benchmark comparison purposes here, Polco combined the excellent and good ratings to represent an overall percent positive, in this case giving us a 53% positive rating, which ultimately ranked similar to other communities nationwide. An additional custom question sought insight into longer-term focus for the City. Among the options provided, residents placed the largest priority on focusing on: Utilities, Fire and EMS, Transportation, Police, and Economic Prosperity. Summary: Cottage Grove residents experience a high quality of life. Residents identify Safety as both a priority and an asset. Residents place the highest focus on Economic Health. Housing variety and affordability may represent a needed strength in Cottage Grove. Finally, Mobility is a strength of the City. Phil said with that, I’m happy to stand for questions and discussion. Council Member Thiede asked so, in terms of the comparison U.S. benchmark, is that just a general, overall average of any of the cities and sizes and so forth? So, we shouldn’t be too much, like when we look at education, arts, and culture, and opportunities to attend cultural music activities and so forth being much lower. Obviously, being a small community, I would expect some people being close to a metro area where some more of that stuff is available might raise it, it’s so low. I can think as a City we wouldn’t necessarily, we shouldn’t get too bent out of shape about having something like that as much lower because it’s probably typical of a City of our size and location. Council Member Garza replied you know, with what you just said, because I’m reading a lot of the comments regarding that, and you know, Cottage Grove has grown quite a bit in the two years that I’ve been on Council. And diversity is a group, and I remember looking at the numbers on only 483 people that actually answered this, and they don’t really request that, but we know that our City is getting more and more diversified. And, so, maybe, I’m not saying that we can put in all these cultural programs and stuff, but we need to hear that, and we need to listen because it’s not one comment; it’s a few comments that are saying I don’t feel welcome and I feel like that’s because I’m different, I’m not, I don’t see things for me to do, I don’t see things that are aimed towards our culture. So, you know, maybe paying a little more attention to that is something that we should do, especially because we are growing at such a significant rate, and we’re bringing so many more families here, and they’re going to be diverse, and so we should be mindful of that. Council Member Thiede replied true, and I do see, though, that if I look at inclusivity and engagement numbers, I mean, Cottage Grove is, in terms of some of those numbers are actually quite high, similar to other places. But you know, just kind of looking at those, I would tend to think that we’ve got lots of good data on that. Council Member Garza said we definitely do, I mean, even in this, in the results of this, they’re very, they’re very contradictory to what we want to know, right? Because on one side of the fence we’ve got many people saying we’re growing too much, too much is happening, but then on the other side, everyone is saying there’s not enough for us to do, we need more restaurants, we need this, we need that. So, we can’t please our entire community with, you know, the one side or the other side. We’re doing, to me, it seems a very responsible approach, and we’re trying our best to bring more things into our community, but not turning into Woodbury, right? We want to keep that family-oriented place that we have, so this survey is, its actually, I was a little discouraged with it just because there’s so much I want this or I want this. It’s like we’re trying the best that we can and it doesn’t seem like to lower the taxes, if we look at the Washington County taxes, we are the second-lowest City in Washington City Council Meeting June 18, 2025 Page 18 of 21 County. If we go any lower, we can’t provide the things that we’re providing. So, it’s just interesting, and I think these results are very interesting. And Bonnie made a comment when we came in, and she said we should have maybe shared this with the rest of the community live, and I sort of agree. I know this would have been a long thing to do out there, but it is something, these conversations that we’re having right now, the community should hear this. They should understand that we are trying, and we’re listening, but we can only do so much, you know. City Council Meeting June 18, 2025 Page 19 of 21 this community, on purpose. We’re very, very diligent about let’s make sure the photo arrays represent people of all backgrounds, experiences, newer residents, longer-term residents because it’s a fact our population diversity continues to grow as people continue to move into Cottage Grove. But let’s not forget they’re coming here because it’s a great place to live, a great place to raise your family, good schools, they feel safe. Those are the key messages. The Public Safety message in this survey is unbelievable, it’s ridiculous, it’s great, and look, for as long as we’ve been a team, don’t we always talk about how that’s one of the core foundational elements of a great community is people need to feel safe. So, I think we’re doing the right thing, and I think having this statistically relevant survey in our hands is a good thing, but we can’t overreact, yet we can’t underreact. We have to take the data for what it’s worth, but recognize that is 16% of the people that responded. That’s my take on it, based on some of the other surveys we’ve done in the past. By the way, I like this one a lot better because we can do it again in three years or whenever we choose to do it again, and we’ll have statistically relevant benchmarks to look at, and it’ll be consistent. Dave’s been talking about that for as long as he’s been on the Council, let’s make sure we can compare and contrast apples to apples. This will give us that chance to do that. City Council Meeting June 18, 2025 Page 20 of 21 so maybe it’s in our publications. Because your publications, I know that was mentioned here, some of the feedback has been people love how we’re giving them the info. Cottage Grove Reports, people still love it, they read it. City Council Meeting June 18, 2025 Page 21 of 21 she got me because I had my badge on and we were talking and stuff. And they’re from Germany, and she was just telling me a little bit of history of the business, and what was interesting and this I what I want to share; she said yeah, you know, we love Cottage Grove and we’re really excited to be here, but they’re staying at a Bloomington hotel, and that’s where they put up all their people. She said it would really be nice to have a nice hotel in Cottage Grove. 14. WORKSHOPS - CLOSED TO PUBLIC - CONFERENCE ROOM Staff Recommendation: Close the meeting pursuant to MN Statute 13D.05, Subd. (3)a, to conduct a performance evaluation of City Administrator Jennifer Levitt. 15. ADJOURNMENT 1 City Council Action Request 7.E. Meeting Date 7/16/2025 Department Administration Agenda Category Action Item Title Economic Development Authority Meeting Minutes (2025-04-08) Staff Recommendation Approve the April 8, 2025, Economic Development Authority Meeting Minutes. Budget Implication Attachments 1. 4-08-2025 EDA Meeting Minutes MINUTES April 8, 2025 COTTAGE GROVE ECONOMIC DEVELOPMENT AUTHORITY MEETING 12800 Ravine Parkway South Cottage Grove, MN 55016 COUNCIL CHAMBERS - 7:30 A.M. Pursuant to due call and notice thereof, a joint meeting of the Economic Development Authority was held on the 8th day of April, 2025, at 7:30 a.m. 1. CALL TO ORDER The Cottage Grove Economic Development Authority (EDA) meeting was called to order at 7:30 a.m. by EDA President Myron Bailey. 2. PLEDGE OF ALLEGIANCE EDA President Bailey asked everyone to please stand and join in reciting the Pledge of Allegiance. 3. ROLL CALL Alexa Anderson, Communications Specialist, called the roll: EDA President Bailey-Here; EDA Vice President Olsen-Absent; EDA Member Jean-Baptiste-Here; EDA Member Khambata-Arrived after Roll Call; EDA Member Latack-Here; EDA Member Scott-Here; EDA Member Tschida-Here. Staff Present: Gretchen Larson, Economic Development Director Emily Schmitz, Community Development Director Phil Jents, Communications Manager Alexa Anderson, Communications Specialist Jaime Mann, Assistant to the City Administrator Others Present: None. 4. APPROVAL OF MINUTES A. Staff Recommendation: Approve the February 11, 2025 Economic Development Authority & CVB Joint Meeting Minutes. EDA Member Scott made a motion to approve the February 11, 2025 Economic Development Authority & CVB Joint Meeting Minutes. Motion was seconded by EDA Member Tschida. Motion passed unanimously (5-to-0 vote). 5. BUSINESS ITEMS A. Plaque Presentations - EDA Members Dan Myers and Chris Carey Staff Recommendation: Present Dan Myers and Chris Carey with an appreciation plaque. EDA President Bailey said two of our members have recently gone off the EDA, and one of those members is here this morning so we get to recognize him. Both of these members were on the EDA a little bit longer due to COVID, and so, the normal term kind of got extended for a few extra years because of COVID. I thought I would read a little bit about Dan Myers and also about Chris Carey, who is not here this morning; both served on the Economic Development Authority Board from June, 2017 to February, 2025. So, in their eight years of service on the EDA Board, the City saw tremendous changes in which they obviously played a key role; these changes included many new businesses locating in the City, including Pizza Ranch, Culver’s, Caribou Coffee, Bride & Jewel, Hy- Vee, Junction 70, Muddy Cow, McDonald's, TJ Maxx, Home Goods, Ulta Beauty, Salons by JC, and many more. As you can tell, they were here through all of that, so that was pretty amazing. Those also assisted in attracting new businesses to the City’s Business Park, including Air Gas, NorthPoint, R.J. Schinner, Lumbermen’s, Hohensteins, and now, most recently, Kwik Trip. They also assisted others in their growth and expansion efforts, including the expansions of Renewal by Andersen, Van Meter, Lumbermen’s, and Up North Plastics. These changes also added billions, literally, in taxable value to the City’s Tax Base. In addition, they helped the Economic Development Authority Meeting Minutes April 8, 2025 Page 2 of 9 businesses to secure large grants from the State via the Minnesota Investment and Job Creation Fund, which helped them expand and stay in the City rather than relocating either outside of the City or to a different State. During their service, we also undertook a hotel market feasibility study, a housing study, a small area plan now known as the Innovation Village, a stadium feasibility study, and a Convention and Visitors Bureau Strategic Tourism Plan, and funded a historical painting of the City, which we in turn used to create a City puzzle in partnership with Dowdle Studios. All of these strategic plans and projects helped guide the City forward and will continue to do so in the foreseeable future. Housing was also important to the EDA, during their tenure we have The Legends, Norris Square, GROVE 80, Trellis (which is Bluestem), and many other multifamily complexes that were built in the City. These projects allowed the City to grow as well as allowed many seniors to be able to stay within our City. Dan and Chris’ determination to help the City grow in a responsible and sustainable manner was simply outstanding. So, I just want to say on behalf of myself and the City Council and I’m sure all the rest of us up here on the EDA, we want to extend our sincere appreciation for your outstanding service as an EDA Board Member and obviously to the City. EDA President Bailey said it’s interesting, and I don’t think you realize, Dan, I know I don’t, we kind of look back at the years you’ve been doing things, and then when you start seeing the list of all the things that you helped bring or support within the City, you kind of go, whoa, at least I do. You kind of go, wow, there was a lot happening in those eight years that you were on the EDA. So, what I’d like to do is I’m going to have you come up, and I’m going to come down, up front, and I’m going to present you with a plaque. EDA President Bailey read aloud the plaque for Dan Myers for his extended term, June 2017 through February 2025, and presented the plaque to Dan. A photograph was taken, and everybody applauded. B. Maxfield Research Housing Study Staff Recommendation: Receive the Maxfield Research Housing Study. Director Larson stated Mary Bujold is with Maxfield Research, and we hired them to do the housing study, and now she’s here today to present it to you. EDA President Bailey said fantastic, welcome, Mary. Mary said thank you. Chair Bailey and commissioners, it’s my pleasure to be here this morning to briefly present the key findings from the housing analysis. I’m sure you’ve seen the larger document, which is quite extensive, and perhaps you haven’t had a chance to get through it all at this point, but that’s fine. Project Scope Objective: To provide an analysis of housing needs for the City Approach: Provide a guide and framework to consider key housing priorities and current housing gaps Project Deliverables: • Short and long-term housing needs • Recommendations guiding future housing development Key Dates: • Data Collection, 2nd & 3rd Quarters 2024 • Draft: October 2024 • Presentations: March and April, 2025 Cottage Grove Primary Market Area 70% of Demand: Cottage Grove, Woodbury, Newport, St. Paul Park, Grey Cloud Island Township, Denmark Township, Hastings When we draw a primary market area, it’s with the understanding that housing demand is actually somewhat fluid, and especially so in the Twin Cities metro area. We have people moving quite a bit between different communities, and in addition to that, within the identification of a primary market area, there will always be some demand that comes from outside of that area, which is this 30% of demand that will come from outside the area. Then we look within that primary market area and the projected growth, what proportion of the demand would be capturable directly by the City of Cottage Grove. Within that, we look at the additional areas in the other communities, what their projected growth is going to be, what their land areas are, and then we assess and analyze where the potential demand for certain types of housing products would be capturable by the City. So, Cottage Grove is definitely growing, but at a decelerating pace. I just want to mention, too, that that’s not unusual. So, what we’re seeing across the Twin Cities metro area and especially in communities that are primarily fully developed, although Cottage Grove is not at that point yet, is that we are starting to see a slow down in terms of population growth in many communities. We’re also starting to see even though we’re seeing household growth pretty much keep pace, and we’re still seeing that decelerating pace from kind of this mid-area when development really zoomed in the Twin Cities. So, Cottage Grove experienced its greatest growth Economic Development Authority Meeting Minutes April 8, 2025 Page 3 of 9 between 1960 and 1970, and then had a second, fairly substantial growth spurt between 1990 and 2000. Since 2000, growth has been steady, but at a decelerating pace, so a decelerating rate of growth, consistent with most other expanding metro area suburban cities. For-Sale Home Prices Continue to Climb For-Sale home prices continue to climb despite a modest downturn in For-Sale median home prices, they have generally continued to rise. We are seeing this throughout the Twin Cities metro area, we’re seeing it throughout the State of Minnesota, the Upper Midwest, as well as across the nation. Price increases have knocked out some entry-level buyers, move-up buyers are largely staying put because many move-up buyers took advantage of those very low mortgage interest rates, and so they’re just holding steady. New construction is suppressed because of the slowdown in demand and supply-chain challenges. Accordingly, too, land prices have not decreased, which further exacerbates this problem. So, we’re seeing challenges in terms of land costs throughout the market. I’m working with a number of different developers, primarily multifamily developers, and they are definitely not seeing land prices decrease; so, that’s kind of compressing their margins and their ability to be able to make their numbers work. Many are seeking additional equity and capital stack so that they can reduce their reliance on mortgage lending. Average Rent per Square Foot in Market Rate Rental Properties in the Primary Market Area So, that is growing as well. There was a dearth of new apartment construction in the 1990s and 2000s, which then led to a substantial increase in multifamily development, beginning in the 2010s. An even greater number of units have opened recently, and despite this inflation, we are still seeing a lot of interest among multifamily developers in developing additional units, primarily because we’re still having a lot of difficulty moving people into that For-Sale market. So, their alternative is to rent at least for a period of time or for a longer term. So, even though the new multifamily construction has slowed, demand still remains strong, and we are seeing very good absorption among properties that have recently opened. Average Rents/Square Foot on Affordable Rental Properties So, we are seeing rent levels are lower for affordable rental units, but I will mention, too, that as it’s based on a kind of benchmark format: So, as rents rise in the market overall among market-rate properties, those rents that are even affordable are still also rising. That’s predicated, of course, on incomes rising. I think what we are seeing, too, is even though these rents are more affordable than traditional market rate, we are seeing some households become increasingly cost burdened, even with affordable rental properties. So, some portion of households are even having to pay a higher proportion of their income for rent, even at an affordable property. So, there’s definitely a highly competitive funding process for tax credits and a need for multiple funding layers, which also hampers new development. So, as much as we would like to see more affordable units come into the market, the resources and the process for getting those units into the market has become increasingly difficult. As rental rates climb, affordable rents also escalate, which I mentioned, which may create challenges to fill these units at the higher rents. General Occupancy Housing Demand Demand projected for owned housing, detached and attached: There’s strong demand for market-rate rental housing, and there is a need for all housing products across the spectrum. So, affordable housing is the most difficult to develop, whether that be that middle market tax credit affordable housing or deep-subsidy housing, due to high development costs and significant financial caps. These demand figures were generated for 2024 to 2035; they also were separated out between this first six-year increment 2024- 2030 and then 2030-2035. Senior Housing Demand Demand for senior housing will continue to increase over the next 20 years, largely due to the aging of the Baby Boomers. Assisted Living and Memory Care is still recovering from the pandemic, but I would say to you that we are seeing increased demand for Assisted Living and Memory Care from the market. What is creating some significant problems is there are definitely labor shortages among caregivers, and so, we are seeing all service-enhanced senior housing developments continually trying to hire labor to be able to serve the population that they have or are trying to attract. We still do have some facilities, especially among the Memory Care components, where they are not able to utilize all of their beds, even though there’s demand for that, again because they do not have the proper labor ratios to be able to care for these individuals. We believe that is going to continue, especially in the short term, potentially in the long term, and it will negatively impact again this ability to satisfy the demand in these service levels. Why is the Entry Level and Middle Market Missing? • Zoning Regulations • Density Requirements • Design/Material Requirements • Permit/Impact Fees • Infrastructure Costs • Building Code Changes: Those don’t necessarily always occur at the regional or local level, they are also impacted by the State. We’ve seen different State regulations come down that have significantly impacted building in different areas of our State. Some of those have been reversed, but others I think it’s important for us to consider how those Building Code Economic Development Authority Meeting Minutes April 8, 2025 Page 4 of 9 regulations and requirements may hamper our ability to provide the housing that we need to serve our residents and also just, in general, people in our State. • Increasing Labor and Material Costs • Land Acquisition Costs Increasing • Financing Challenges for Smaller Developers/Builders: Especially during the great recession, we lost quite a few of our smaller builders. We are trying to attract national builders to Minnesota, that has occurred to a modest degree, but we really need more national builders to consider the Twin Cities and Minnesota as a place to develop. • Lenders Tightening Underwriting Standards/Bank Regulation Increasing with Bank Failures • Economies of Scale Needed Key Takeaways • Population and household growth was strong last decade; some increase in family households but not enough to overshadow those without children and singles living alone. Again, this speaks a little bit to the ratio between population growth and household growth. So, we are seeing a strong percentage growth in households, largely because we are seeing shrinking household sizes, so we still have a definite need and demand for housing to house those households that are being created, even though many times those households have fewer people. • Cottage Grove’s near-term growth is led primarily by the Millennials and Baby Boomers, resulting in demand for housing products at opposite ends of the spectrum, although there is some overlap in market-rate rental housing and for-sale townhomes. • Growth in the 65+ cohort will dominate over the next 15-to-20 years; what housing products are needed? Consider options other than traditional senior housing. Early on, I think a lot of developers in the general overall market thought well, we’ll just develop senior housing and that will kind of take care of this aging 65+ group. Over time, what we’ve seen is, especially among that younger group, they are really not ready for senior housing; so, that perspective of what senior housing is and what products are attractive to this group have started to really shift. And, so, again, we’re starting to see that idea of like more the detached villa, the twin home, the cottage-style home, and more independent products be attractive as this group starts to age. The average age for Assisted Living and Memory Care has now pushed well into the early-to-mid 80s if they even move into that product at all. Right now, in terms of a market penetration for senior housing, in the Twin Cities we’re probably somewhere around 17%-18% of that age 65+ market, which is still a relatively small proportion of our overall 65+ age group. That means there’s a lot of people in their traditional single-family homes, there’s a lot of people kind of looking for that interim product. • For-sale and rental housing will combine to increase the housing stock in Cottage Grove. As low-density land supplies decrease, it will be important to target locations for higher-density development. • For senior housing, active adult products (both rental and for sale) will continue to be popular. High home prices enable seniors to sell and relocate to more convenient housing products. • Between 2024 and 2030, demand is estimated for: 1,910 for-sale units, 933 rental units, 1,023 senior units (all service levels). That’s a pretty diverse product group, but I will tell you that the majority of that demand is for an active adult product, whether that be for sale or rental. • The market continues to be challenged as to how to bring needed products to the market (innovation/creativity/not business as usual). Mary said and that’s the presentation. EDA President Bailey said fantastic, well, thank you, Mary. It’s kind of interesting because as obviously the mayor, I’m elected, what I find kind of funny is over the last five, six years, so to speak, maybe a little longer, some people in the community think we’re growing way too fast. It’s funny because you look at your data, and our intent has always been to be careful with how we grow, and you used the word decreased, or suppressed, if you will with regards to how we’ve been growing. My one question, and I’ll open it up for the EDA Members here for any questions that they might have; so, when you’re seeing that, at least it appears to me, too, that I hear from a lot of individuals that want to move out of maybe a bigger single-family home, and they want to go into like a villa, like you said. They don’t necessarily want to get into a senior component, if you will; so, villas, or one-levels, whatever, seem to be the thing that everybody’s looking for. The challenge I’m hearing, and I don't know if you want to speak to it, is when they want to do that, they want to be able to go from this house to this house and not have any debt; in other words, they took the money they made here and they put it into here, and if anything, maybe they have a little extra. What I’m hearing, that is not happening. Are you seeing that as part of the information that you’ve learned? Mary replied yes. So, especially right now, that is an extremely challenging situation, and the primary reason for that is when we’re looking at the villa developments, largely those lot sizes right now for most villa developments have been between that 50’ and 55’ wide lot. So, we are seeing some that have been pushed down to maybe as low as about 42’ or 40’; that’s getting a little Economic Development Authority Meeting Minutes April 8, 2025 Page 5 of 9 skinny on that traditional villa style, but the cost to put those on the market is most of those units traditionally are in that $450K- $500K range. When a senior is selling their home maybe in that $300K-$350K range, they’re seeing that price gap, and we’re seeing that across the market. Maybe they are able to opt for a twin home, but even so, we’re seeing twin homes even come on the market at much-higher prices. What we aren’t seeing in the market that we were seeing, I would say just pre-great recession, is we were seeing some developers put in what we call kind of a cottage-style or quad style concept, where we had 4 units on a lot or a pad, and they each had an attached wall. Now, that is not necessarily what the overall market ideally prefers, but when those units were developed, they sold like hotcakes because they were in that kind of lower price point where somebody could sell their home and move into that almost on an equal-to-equal basis. I’ve tried to be promoting that a little bit, but it hasn’t so far kind of taken off where developers or builders have kind of grabbed onto that yet, where maybe they might want to try that product in the market. I think we can kind of keep encouraging that because it is harder, you know, there are not all that many households that can sell their home and then suddenly buy a $500K or $550K or more detached villa. So, I totally understand what you’re saying, it is occurring, it is a challenge, and I think especially, too, in this period, even though seniors are able to get top dollar for their homes, it is hard to make that bridge financially in terms of, as you said, and then have no debt. EDA President Bailey said I’ll have one more question, then I’ll turn it over to the EDA Members. You were commenting about trying to get more national builders, if you will, and obviously, we’ve got like Lennar and D.R. Horton and those out here, is there somebody, and I guess I really don’t know, is there somebody very large out there? Mary replied so, David Weekley has recently been seriously looking at entering this market; they are a very large national homebuilder, and we’ve had some conversations with them. They are eying different markets here in the Twin Cities, in terms of coming in and starting to do development here. There are one-or-two others; I can go back and take a look, too, and maybe I can just provide the names of those as well. EDA President Bailey said okay, I appreciate that, thank you. Mary replied yeah, sure, no problem. EDA Member Khambata said you cited that labor was an issue, land acquisition was an issue; are you getting any feedback from any of the builders on how market volatility related to imported materials, such as lumber, is going to have an affect on the market? Mary replied well, it’s a little early, but because things have been happening so rapidly, but I will tell you that will affect our situation. Frankly, I am concerned because moving into this current situation, we have had significant demand and need for housing; and we have been for about eight-to-ten years behind the eight ball, in terms of developing and now housing, to be able to meet the demand, not only here in the Twin Cities but across the country. And I’m very concerned about our ability to be able to maintain some kind of modest or reasonable cost balances in terms of being able to provide housing products that people can afford. I’m not sure where all this will level out; I guess my hope is that even with the proposed tariffs that we have, that eventually cooler heads will prevail and that we’ll roll some of those back once we start to see the economic results in our market. Because at this point, I believe we can ill afford to fall further behind in terms of providing needed housing. EDA Member Tschida said so, I guess, following up with what the mayor was saying about national builders, is there a reason why we’re not seeing as many national builders in the Twin Cities and the Minnesota market? Mary replied so, I will say to you that over time, what we have seen in our market is we’ve seen periods where national builders and national developers have come to the Twin Cities, and they stay here for potentially a period of time, and then they tend to move out of the Twin Cities or out of Minnesota, primarily the Twin Cities. Some of that is because our market grows, it grows at a very steady pace, and we tend to maintain good levels of occupancy, especially in our multifamily units; but what a lot of national builders are looking for is what I would kind of say are super growth markets. So, they’re looking for the much larger markets, like the Austin market or North Carolina market or Tennessee where growth is consistently occurring at large double digit rates. So, even though, like I said, we have been able to secure and maintain some, like Pulte and Lennar, they have been in our markets for many years; but especially too we’ve looked at larger multifamily developers that come into this market and they stay for just kind of about five-or-six years, and then inevitably we see them go elsewhere. As I said, we have a very solid and steady market, but we don’t have sometimes that larger growth spurt that they’re really looking for. We actually have the other market that is, of course, attracting a lot of development is the Phoenix, Arizona market, which is exploding. EDA Member Jean-Baptiste said my question is obviously, we know what we have and we know what we don’t have; we don’t have explosive growth, but we do have steady growth. Would that be attractive to more of a regional player? And my second part to that question is the reason why we’re going after the national builders, is it because they provide more economies of scale and could produce housing at a lower rate? Or if we went after the regional players that could be okay with the steady growth that we have, we’re not chasing double digits, could they still produce at the same level that those national players are? Economic Development Authority Meeting Minutes April 8, 2025 Page 6 of 9 Mary replied so, that’s a very good question, and I thank you for that. So, I would say to you that national builders do have some economies of scale, primarily in terms of their buying capabilities. Once they get in this market, though, they are subject to pretty much the same regulations and cost structures in terms of development costs and land pricing that other builders are subject to; so, I think that the players that have been in this market for a long time, they’re very solid, and I would say that I think that we have a lot of very good builders here that we would still want to court them. I think the difference really is that sometimes national builders coming in, they bring a little bit of innovation and creativity that sometimes our local, regional builders have become comfortable. You know, it’s like, oh, we’ve been building here for a while, we really know what works, it’s kind of we just want to kind of stay in that niche vs. being challenged a little bit by oh, here’s somebody coming in that’s going to give us a little bit of a run for our money, and because they’re bringing in something that’s new or a little different. So, I think while I really appreciate that we have really good, solid regional builders here, I think that trying to attract that national builder gives us a little bit more of an edge in trying to bring in some products maybe that we haven’t thought about before. EDA Member Tschida said you had mentioned that the builders are still subject to the same local regulations here, and as I look at both City and State government, that’s the #1 thing we can control; I mean, we can’t control the price of land and lumber from up here. So, I guess, as we’re looking at expanding housing opportunities, what are some of the things the City of Cottage Grove and Washington County and even the State of Minnesota can be doing to roll back regulations or look at different things, whether its zoning policies or what have you, to really unleash growth without having to pour a bunch of taxpayer dollars into it? Mary replied so, a lot of it really has to do, I guess, with again, as you said, kind of local zoning regulations and density requirements. Sometimes it has to do with restrictions on types of materials being used or even the minimum lot sizes. So, I think, you know, to be sensitive, especially when we’re trying to develop products that aren’t at the entire upper end of the spectrum; look at opportunities and ways that we can shift or adjust some of those previous criteria and regulations to be able to encourage again those economies of scale. I think in the market what we’re seeing is we’re definitely seeing that we have essentially almost no entry- level housing; but in order to build that, we really do need to look at opportunities and options for products that we may have considered developing or were developed like many years ago, and by that I mean a creative, smaller rambler or a creative, 1-1/2- story expansion bungalow. So, getting people into a product that they can grow with, I mean, those homes still remain popular in the market today. When we look at people who are looking for reasonable and affordable housing, especially in communities like Cottage Grove or even Roseville, those products sell right away. It’s not that people don’t want to live in them, they do. I mean, granted, those houses may be older, but what if we developed something like that that was brand new? I mean, one of the things that we always see in the market is entry-level buyers kind of push back sometimes because they don’t want to do a lot of sweat equity, you know? So, they don’t want to go in and have to redevelop the entire home when they move in. Well, if we could figure out a way to develop products that were brand new, where they could move in, and even if they did pay just a little bit more for those products, maybe not a top level, everything would be new. So, they would at least have a period of time where they didn’t have to start buying the home and then investing a lot of money in redoing it, and it would potentially offer them, if they needed to add on, they could add onto that home as their family grows. EDA Member Tschida replied yeah, fair enough, I really appreciate that. EDA Member Latack said so, regarding senior housing living, since there will be a demand over the next 20 years, it seems like that pressure will keep the demand, but then also keep that price higher where they’re not able to move laterally, without debt. What are your thoughts on kind of condo-style living with amenities? Mary replied so, I would say that I think condo-style can work as long as it isn’t necessarily in a traditional 3-story apartment building. So, you can develop a condominium product that is like a townhome-style product that is actually a condo, it’s not a townhome. I think the biggest issue that we see there, though, is if that product is going to be developed, it still needs to be that single level living. I mean, there is some demand for that; I think we still had a little bit of a pushback on that kind of “condo”, especially in that apartment-style building type of situation, and I think it’s primarily because condominium has gotten a little bit of a bad name. I will say cooperatives, senior cooperatives, have been extremely popular, and they’re still popular; I mean, we have waiting lists at most of the cooperative developments that exist in the Twin Cities. I would say that’s definitely one product that would be very attractive in Cottage Grove. It’s a little bit different financial framework, but again, that product has just proven to be extremely successful. I hope that answers your question. EDA Member Latack said yes, but I guess one follow-up question: What is the difference? Mary replied, so, in a cooperative situation, it’s a little bit more of a collaborative situation in terms of community. I think people who move into cooperatives tend to have a little bit more of a cohesive community feeling and environment; the technical difference is that there’s one blanket mortgage that is placed on the property, and then the residents buy shares and they pay down that blanket mortgage. So, they basically purchase a right to live in the unit, and then they pay down the blanket mortgage; but I think what is more attractive about it is really the idea that condominium has a little bit different structure, in terms of how Economic Development Authority Meeting Minutes April 8, 2025 Page 7 of 9 expenses are assessed. There is actually a Bill before the legislature currently to somewhat restructure some regulations for homeowners associations; we’re not sure exactly what will be the outcome for that, but I think that there was some condominium developments, there’s been a little bit more of a pushback in terms of how associations operate. And maybe it’s just because the cooperative product is so new, but older cooperatives have continued to be pretty popular. And also, usually in the cooperative, you can get in at a lower price. So, you can have a little more flexibility in how you want to pay monthly; so, if you enter at a lower share price, then your monthly amount is higher vs. if you pay a higher amount to get in, then your monthly is lower. So, there’s more flexibility for the individual resident. EDA President Bailey asked if there were any other questions, none were asked. He said great information by the way and good questions from everybody. EDA President Bailey said Mary, thank you so much for coming in today and sharing with us the study. Mary replied thank you very much, I appreciate it. EDA President Bailey said before we move onto the next item, I’ll just mention it’s interesting; for example, I do specifically remember the cooperative. To that point, we did have a developer that at one point was looking at doing a cooperative. I don't know what caused them to decide not to, I don't know. But we have looked at that as an option, too, as an additional type of housing option here within the community. I believe it was going to be down on the Dunes site, I think it was with a previous developer, though, if I remember right. And then what we are looking at with this study, just so we know as the EDA, is our staff has been kind of looking at our zoning again to see if we need to expand or contract certain types of zoning, based on the needs that it appears we’re going to need to be focusing more attention on. I will just share that we just had a workshop as a Council for the Tank property, which is just down the road here, off of County Road 19; there was a developer that shared with us a concept plan of starting to build on the other side of County Road 19 and getting us some ideas. We saw a new housing type that’s smaller, I’ll just be frank, it kind of freaked me out a little bit, but I’m going to go look at a couple other communities that have them, super duper small, 2-story, I think it’s kind of what you were talking about with the loft thing. Very tight, though, development, but to your point, I think that’s what gets the price down. The question is, as I hear, and I’m sure my partner next to me here when he was on the Council hear a lot, every time we start crunching the lot sizes down, we don’t hear from the people that are buying those lots because they’re happy, but the existing residents in Cottage Grove are like what are you doing? You’ve got houses on top of houses! And so, there are some challenges for perception vs. what the upcoming generation is looking for, maybe not such big lots. And part of it I do think is the cost factor, too, definitely. Mary asked if she could add one thing; EDA President Bailey replied absolutely. Mary said so, we are actually seeing some larger builders, like Lennar and Pulte, who are starting to build single-family homes on a lot smaller-sized lots. So, that’s the big push now from where we were seeing them before. EDA President Bailey replied yeah, and I know we have Emily in the background there. Emily, the one that they were proposing, do you know how wide those were? Director Schmitz replied 28, and 28 is small. EDA President Bailey replied it is very small. I mean, it looks to me, it almost looked like a mobile home, but 2-or-3 stories tall. But, yeah, that was what we’re talking about, this one piece of it that we’re looking at, not the whole property, I want to be very clear; there were mixes and things, but that’s the kind of stuff we’re trying to figure out. You know what fits, what doesn’t fit, what are people buying? So, it is interesting; this study is going to help us guide for the next 10 or so years. EDA President Bailey thanked Mary again for coming and sharing with us. C. Development Updates Staff Recommendation: Receive Report. Director Larson said I will say on the housing comment, having come up from Houston, Texas, Mary would know this, but the smaller lot, 3-story, sold like hotcakes. David Weekley built them everywhere in Houston, and it was a beautiful product for younger families to get into because they don’t actually mind the stairs because they know what baby gates are, so. Just so you know, as you’re thinking about it, that really is good for the market. Beige Book Report: Employment: Increased slightly since the last report in the winter. Prices: Increased. Wage Growth: Moderate. Consumer Spending: Flat. Construction Activity: Slow. Commercial Real Estate Activity: Remained relatively flat. Residential Real Estate Sales: Grew Moderately. Manufacturing: Experienced some improvements. With the tariffs, now we don’t exactly know what’s going to happen this next round. Agriculture: Conditions were weak. Oil and Natural Gas Exploration: Remained unchanged. Minority and Women-Owned Businesses: Continue to report lower sales and profits. Economic Development Authority Meeting Minutes April 8, 2025 Page 8 of 9 Community Development Updates: Gerber Collision, 7300 West Point Douglas Road: The roofing material and exterior walls are installed. Excavation has started for the interior slab. Vangz Kitchen, 8711 East Point Douglas Road: The interior improvements are complete, and the final building inspection has been approved, pending final electrical and final fire sprinkler inspections. Washington County Health Department approved their final health inspection. Their grand opening is scheduled for this Saturday, April 12, at 3:00 p.m., and the mayor will be present for that. As many of you know, that is the former location of Ho King. It’s going to be very exciting, and Mr. Vang is very happy to be opening. Taco Bell, 8623 East Point Douglas Road: They did some minor interior renovations, and installation of the exterior signs are complete. Low Zone Water Treatment Plant, 10901 Ideal Avenue; again, as we speak, probably a lot of this is already done: Interior painting of multiple rooms on the main floor is still ongoing. Installation and painting of the process piping continues, as does the plumbing piping. HVAC ductwork installation is almost complete. The installation of the brick and the platforms between the horizontal pre-treat tanks has been completed. Other Projects: Ellwyn Apartments by Roers Company, 6850 East Point Douglas Road: The plan review is underway for a new apartment building. Park High School, 8040 80th Street: The plan review is underway for the addition to the high school building. Buffalo Wild Wings GO, 7145 East Point Douglas Road, #160: The plan review is underway for a tenant improvement project. Director Larson said Emily is still here if you have any questions about the projects, and, again, they’re probably going along a lot faster than we have done right now. D. Property Purchase and Hotel RFP Updates Staff Recommendation: Receive information. Director Larson said in December, 2022, just as a reminder, HVS Hotel Study was completed. It did indicate that there was a need for a 90-room branded hotel in the City, and potentially, the most ideal locations were 80th Street, Jamaica, and then also near the 73 acres adjacent to Walmart. You authorized an appraisal to be done in November, 2024; that was finished in early February, 2025. In December, while we were waiting on the appraisal, we started the Hotel RFP. In March, we made an offer on the property after the Council had an executive session, and we will meet again with the owner on Monday; so, hopefully, the offer will be accepted, but we’ll see and will report back accordingly. And then in May, three of the members of the EDA Board, the mayor, EDA Member Khambata, and EDA Vice President Olsen are going to go to ICSC. So, at that event, we will showcase the Hotel RFP, assuming all goes as planned, and then we’ll also showcase the other properties, including the 73 acres, the properties that are still available in the Business Park, and others, to developers at ICSC. So, that’s all ongoing. I’m happy to answer any questions about that; no questions were asked. E. Yellow Tree Project Updates Staff Recommendation: Receive report. In August, 2024, the Community Development Department was contacted by Yellow Tree Development for a proposed 164-unit multifamily project at Outlot D, Everwood. It’s along East Point Douglas, and you can see on the map the circle; it’s kind of near The Legends and behind Kohl’s, it’s a market-rate complex. The City Council held a workshop on March 19 to see about the project and to talk about an abatement that was requested. It’s a challenging site, it’s a nice project, it fits into the housing study needs, and they requested a tax abatement of 10 years and not to exceed $848,800; that agreement, if it moves forward, would also have a lookback provision, just like TIF does. So, overall, the Council at the workshop thought it was a good product, understands the challenges of the development, and agreed that if it were to move forward, they were amenable to a tax abatement. EDA President Bailey said I’m just going to make a piggyback plug in there: There was an article in the paper that had a larger number out there, just for the EDA; that is what they wanted, and we said, along with Ehlers, who does all of our financials for the City, that they would not qualify for that higher dollar amount. So, the amount of money that Ehlers said that they should qualify for, based on the true hardships, was the $848,800. So, if you see that out there, I think it was in The Business Journals or something, yeah, Finance & Commerce, and some people were asking why are we giving $1.2 or $1.4 million, and it’s like we’re not. We’re not doing that, so I just wanted to make that clear for our EDA here, too, so that they’re aware of that number or what the real number is. Director Larson said thank you, President Bailey. Yes, it was $1.5 million, and it was 15 years, and we did actually correct the writer of the article and told him. So, okay, next time, if it moves forward and you update it, make sure you use the right numbers; and they just didn’t know because that was in the original staff report. F. Dominium Compliance Report Staff Recommendation: Receive Report. Economic Development Authority Meeting Minutes April 8, 2025 Page 9 of 9 Director Larson said Dominium’s certification of compliance, this comes before you every year; they’re required to file an Annual Report to say that they’re in compliance with their TIF Plan and the Development Agreement that the EDA has with them. It requires that 80% of the building units be affordable senior housing, and then the other 20% remains affordable, but it’s not necessarily just for seniors; and that’s true of all of our TIF Agreements, the ratio may be different, but you can allow others, disabled and people who are income challenged and who are not seniors, to move in there. In February, we received their Certificate of Compliance, along with their actual Tax Credit Report, and it shows all of the folks, the rent they pay, the size of their apartment, and then at what ratio are they, and they all remained at about 60% to 50%. So, they are in compliance. The only reason we don’t put that in there is because it has a lot of private information in it; you just see the certificate saying they swear they are in compliance and have reported it correctly to both the State and Washington County. Director Larson said I’m happy to answer any questions about that. EDA Member Khambata said if I recall correctly, was it last summer or the summer before, there was some concern with residents of this complex regarding the rate of increase. If I remember correctly, after looking through those rates of increase, they were within the specified amount, which I believe was under 12%, but at that time, rental rates across the metro were rising at double-digit rates annually. So, while it was within the specification for keeping their TIF and their affordable housing dollars that they receive for the project, those tenants were upset and I think reasonably upset; but, again, absent these TIF conditions, those rates could’ve come up much higher to try and meet market rates. So, even though it’s not a perfect system, I think this is still a good mechanism for the City to help develop affordable housing. Director Larson replied absolutely, and those questions were addressed later on with the mayor and some of the folks from Dominium because part of it was all of those extra fees that aren’t covered by the HUD cap, right? Like for your parking space and for certain things related to maintenance; EDA President Bailey said electric, the surcharge on the surcharge. Director Larson said yes. So, I’m proud to say that EDA President Bailey, Mayor Bailey, made some good headway with that. So, hopefully, it will remain that way. Director Larson said we just want to note that on May 13, you will not have your regular EDA meeting because we don’t have any action items, but you will have your June 10 meeting because we will have a number of action items for you to consider; this is the upcoming meetings calendar. Administrator Levitt wanted to especially point out that next Thursday is the Volunteer Banquet, so even though the RSVP has closed, if you will let staff, any one of us know if you’ve not said you were attending, and we’ll make sure that we put you on the list. Director Larson said and other than that, there’s a lot of ribbon cuttings coming up, so we’d like to see you there. EDA President Bailey said yes, definitely, looking forward to this Saturday at Vangz; Director Larson said oh, yeah, that will be very exciting. EDA President Bailey asked if there were any other EDA Comments or Requests that they wished to make; there were none. 6. PUBLIC HEARINGS - None. 7. OTHER BUSINESS - None. 8. WORKSHOP - None. 9. PRESENTATIONS - None. 10. ADJOURNMENT EDA Member Khambata made a motion to adjourn. Motion was seconded by EDA Member Jean-Baptiste. Motion passed unanimously (6-to-0 vote). The meeting was adjourned at 8:28 a.m. Respectfully submitted, Gretchen Larson Economic Development Director /jag 1 City Council Action Request 7.F. Meeting Date 7/16/2025 Department Community Development Agenda Category Action Item Title Approval of Rental Licenses Staff Recommendation Approve the issuance of rental licenses to the properties listed in the attached table. Budget Implication N/A Attachments 1. Rental License Approvals CC Memo 2. Rental License Approvals Table TO: Honorable Mayor and City Council Jennifer Levitt, City Administrator FROM: Samantha Drewry, Code Enforcement Officer DATE: July 9, 2025 RE: Rental License Approvals Background/Discussion Rental licenses are required for nonowner-occupied residential properties (City Code Title 9-13, Property Maintenance, and Title 9 -14, Rental Licensing) and are issued on a biennial basis. The licensing process includes submittal of the rental license application, payment of the rental license fee, and public criminal history report. Rental inspections are conducted on all rental properties as part of the licensing process. Once all information has been submitted and the inspection satisfactorily completed, the Council must approve the license prior to it being issued. The properties listed in the attached table have completed the licensing process and are ready to have their licenses issued following Council approval. Recommendation Approve the issuance of rental licenses to the properties in the attached table. 2025 RENTAL LICENSES CITY COUNCIL APPROVAL - JULY 16, 2025 RENTAL LICENSE NUMBER PROPERTY STREET #PROPERTY STREET NAME PROPERTY OWNER RENT-001567-7787 Jeffery Avenue South HPA JV Borrower 2019-1 ML LLC RENT-001640-9413 69th Street South HPA Borrower 2017-1 ML LLC RENT-002785 7889 72nd Street South Jordan Dibich RENT-002789 6642 Pine Crest Trail South Bradley Schumacher RENT-002813 6824 Pine Crest Trail South Trinh Ha Dinh RENT-002814 9651 65th Street South Naveen Kumar Shivashankar 1 City Council Action Request 7.G. Meeting Date 7/16/2025 Department Finance Agenda Category Resolution Title Accept 2nd Quarter 2025 Donations Staff Recommendation Approve Resolution 2025-98, Accepting donations received in the 2nd Quarter 2025. Budget Implication N/A Attachments 1. Resolution 2nd Quarter 2025 Donations CITY OF COTTAGE GROVE, MINNESOTA nd Quarter 2025 Received From Purpose Amount th of July Sponsorship th of July Sponsorship th of July Sponsorship th of July Sponsorship th of July Sponsorship th of July Sponsorship 1 City Council Action Request 7.H. Meeting Date 7/16/2025 Department Administration Agenda Category Action Item Title Grant Application - Spark Good Community (Walmart) Staff Recommendation Authorize the Wellness Committee on behalf of City staff to apply for the Spark Good Community local grant through Walmart. Budget Implication Attachments 1. Memo - Walmart Grant (updating workout room) 2. Spark Good Local Grants Guidelines Background The Wellness Committee, on behalf of City Staff, is requesting permission to apply for the Spark Good Community local grant offered through Walmart in the amount of $3,000. This grant program is designed by Walmart to support local organizations that meet the unique needs of the communities where they operate, build pride among associates, and deepen relationships with customers. The program awards local cash grants ranging from $250 to $5,000. If awarded, the Wellness Committee intends to use the requested $3,000 to add a squat rack to the City Hall training room. The importance of this purchase cannot be overstated, especially concerning our Public Safety personnel. Our police officers and other public safety staff frequently utilize the city hall training room for essential physical training. A squat rack is a foundational piece of equipment for strength and conditioning, crucial for them to maintain the physical fitness required for their demanding roles. When our public safety officers are fit and prepared, it directly enhances their ability to respond effectively to emergencies and ensures the safety and well-being of our entire community. Their physical readiness is paramount to their performance and overall safety. Furthermore, all city staff have access to and utilize this training room. Providing an effective piece of fitness equipment like a squat rack will offer a valuable resource for all employees to improve their physical health and well-being, contributing to a healthier and more productive workforce. Walmart's commitment to investing in local communities aligns perfectly with our need to improve a vital shared resource within City Hall. The grant application period the Wellness Committee would be applying for is August 1 through October 15, 2025, with decisions made prior to the next quarter's opening. We believe securing this grant would be a significant benefit to the city, enhancing our training capabilities and supporting the continuous physical development of all staff, particularly our critical public safety teams. Action Requested Authorize the Wellness Committee on behalf of City staff to apply for the Spark Good Community local grant through Walmart. To:Honorable Mayor and City Council Members Jennifer Levitt, City Administrator From:Tamara Anderson, City Clerk Date:June 30, 2025 Subject:Walmart Spark Good Local Grant Program Guidelines Spark Good Local Grants Guidelines Walmart believes that investing in local communities strengthens our business as well as the communities we serve. Local grants are designed to support local organizations that meet the unique needs of the communities where we operate, build pride among all associates, and deepen relationships with our customers. Each year, Walmart U.S. stores, Sam’s Clubs and Distribution Centers award local cash grants ranging from $250 to $5000. Before submitting a grant, organizations must review the below guidelines. Program Guidelines Grants are awarded through an open application process to eligible organizations serving the same service area that the facility they are requesting funding from serves. Organizations must have a Spark Good account on Walmart.com/nonprofits and be verified by Walmart’s third-party verification partner, Deed. Only authorized users of the organization’s Spark Good account may apply. Grant amounts range from $250 to $5,000. Applications are accepted and reviewed on a quarterly basis: Mar. 10 – Apr. 15, 2025 May 1– Jul. 15, 2025 Aug. 1 – Oct. 15, 2025 Nov. 3 – Dec. 31, 2025 A maximum of 25 applications (pending or approved status), is allowed per organization at any time. Once funded, reapplication to the same facility is not allowed within the same fiscal year. Final decisions are made prior to the next quarter’s application opening. Affirming alignment with Spark Good program guidelines is mandatory for all grant recipients. Agreeing to logo usage and recognition guidelines is required. If recommended for a grant, funds are distributed through electronic payment via JP Morgan, requiring the organization to provide correct banking within 21 days of the organization’s primary owner being notified that the grant was recommended for approval. Organization Eligibility Organizations must have a Spark Good account and be verified by Deed, Walmart’s third-party verification service provider. Organizations must serve the same service area that the facility they are requesting funding from serves. Eligible entities must be a: 501(c)(3) public charity: An organization holding a current tax-exempt status and classified as a public charity under Section 501(c)(3) of the Internal Revenue Code, listed on the IRS Master File and conducting activities within the United States; classified as a public charity under Section 509(a)(1), (2) or (3) (Types I or II); and Deed verified. Government entity (non-501(c)(3)): U.S. federal agencies territories and commonwealths, state agencies and departments and political subdivisions (including cities, counties, municipal agencies). School: All K-12 public or nonprofit private schools, charter schools, community/junior colleges, state/private colleges, or universities. Institutions must have a NCES (National Center for Education Statistics) number or 501c3 tax status and be verified with Deed. Church or other faith-based organization with a proposed project that benefits the community at large, such as food pantries, soup kitchens and clothing closets and Deed verified. Note: Non-charities, including organizations such as 501(c)(4)s, (c)(6)s, and (c)(19)s like homeowner’s associations, civic leagues, or volunteer fire companies, are not eligible. Selection and Approval Process Facility managers review applications and make initial recommendations. Facility managers are advised to fund trusted organizations in the community where positive relationships exist. Facility managers consider the following criteria when recommending a grant: Mission Aligned: The grant addresses a specific need in their community and makes sense for Walmart or Sam’s Club to help solve (for example, Walmart is a large grocer, so we often fund hunger relief ). Builds Trust: The grant supports an organization that is legally compliant and seeks to bring people together without divisiveness. Effectiveness: It is clear what the organization does, how funds will be used and the impact the grant will have in the community. Click here for examples. Each facility manager may set the frequency and process in which application determinations are made. Managers and grant administrators reserve the right to adjust the amount awarded to each organization without notice. Organizations will be notified of decisions via e-mail, with all decisions being final. If the grant proposal is recommended for funding, the organization will receive an email with instructions to set up electronic grant payment to complete within 21 days or the grant will be rejected. Agreeing to logo usage and recognition guidelines and affirming alignment with Spark Good local grant guidelines is mandatory for approval. All grant applications are subject to review of the organization’s reputation and activities and its agreement to comply with applicable terms and conditions. Submission of an application does not guarantee funding. Funding exclusions include organizations that deny service, membership, or other involvement on the basis of race, religion, color, sex, sexual orientation, gender identity, age, national origin, ancestry, citizenship, veteran, or disability status. Access the application from your Spark Good account on Walmart.com. Spark Good Local Grants Spotlight Grant FAQs If you have questions about applying, this information may help Our Work Creating Opportunity Advancing Sustainability Strengthening Community Walmart Corporate Site Governance Terms of Use Notice at Collection Privacy Notice Your Privacy Choices Careers © 2025 Walmart, Inc. Governance and Values Tools and Resources Grant Eligibility 1 City Council Action Request 7.I. Meeting Date 7/16/2025 Department Administration Agenda Category Action Item Title Single Occasion Gambling Permit - St. Rita Church Staff Recommendation Authorize issuance of a single-occasion gambling permit to the Church of St. Rita to conduct a raffle, bingo, and pull tabs at 8694 80th Street South, Cottage Grove, MN on September 19-21, 2025. Budget Implication N/A Attachments 1. Gambling License Temporary St Ritas 1 City Council Action Request 7.J. Meeting Date 7/16/2025 Department Administration Agenda Category Action Item Title Temporary Liquor License - St Rita's Church Staff Recommendation Authorize issuance of a temporary intoxicating liquor license to the Church of St. Rita's for their fall festival located at 8694 80th Street South on September 19-21, 2025. Budget Implication N/A Attachments 1. Liquor License Temporary St Ritas 1 City Council Action Request 7.K. Meeting Date 7/16/2025 Department Administration Agenda Category Action Item Title Massage Business License - Ross Albert Ulmer (8471 East Point Douglas Road South #105B) Staff Recommendation Authorize issuance of a Massage Business License to Ross Albert Ulmer operating as Health Investments LLC at 8471 East Point Douglas Road South #105B, Cottage Grove, MN. Budget Implication N/A Attachments 1. Massage Business License Application Ulmer 1 TO: Honorable Mayor and City Council Jennifer Levitt, City Administrator FROM: Tammy Anderson, City Clerk DATE: July 16, 2025 RE: Massage Business License - Ross Albert Ulmer (8471 East Point Douglas Road South #105B) Discussion On June 5, 2025, Ross Albert Ulmer applied to operate a Massage Therapist business named Health Investments, LLC at the address of 8471 East Point Douglas Rd., Cottage Grove, MN 55016. The Public Safety Department conducted a background investigation of Ross Ulmer and found nothing that would justify denying the application. In addition to the requirements of Title 3, Chapter 1 of the City Code, all licensed massage businesses and massage therapists must comply with the following performance standards: 1. Compliance with Minnesota Statutes, Chapter 146A, Complementary and Alternative Health Care Practices. 2. Compliance with Standards of Practice published by the National Certification Board for Therapeutic Massage and Bodywork (NCBTMB), as they may be amended from time to time. Standards specific to the NCBTMB will only apply to individuals holding Board Certification with the NCBTMB. 3. Massage business licenses are effective for the compact and contiguous space in the approved license application. A massage business license shall entitle the business to offer off-site therapeutic massage services at an event that is open to the public, such as a fundraiser, community festival, or other similar event, provided such services are performed by a licensed massage therapist employed by the business. Should the Council grant approval, Ross Alber Ulmer and Ruimin Jiang will jointly operate Health Investments LLC, a Massage Therapy business located at 8471 East Point Douglas Road South #105B. Recommendation 2 Authorize issuance of a Massage Business License to Ross Albert Ulmer operating as Health Investments LLC at 8471 East Point Douglas Road South #105B, Cottage Grove, MN. Attachments 1. Massage Business License Application Ulmer 1 City Council Action Request 7.L. Meeting Date 7/16/2025 Department Administration Agenda Category Action Item Title Massage Therapist and Massage Business License - Ruimin Jiang (8471 East Point Douglas Road South #105B) Staff Recommendation Authorize issuance of a massage therapist and massage business license to Ruimin Jiang operating as Health Investments LLC, located at 8471 East Point Douglas Road South #105B, Cottage Grove, MN 55016. Budget Implication N/A Attachments 1. Massage Therapist and Business License Application Health Investments 1 TO: Honorable Mayor and City Council Jennifer Levitt, City Administrator FROM: Tammy Anderson, City Clerk DATE: July 16, 2025 RE: Massage Therapist and Massage Business License - Ruimin Jiang (8471 East Point Douglas Road South #105B) Discussion On June 5, 2025, Ruimin Jiang applied for a Massage Business license as well as to operate as a licensed massage therapist at the business named Health Investments LLC, at the address of 8471 E. Pt. Douglas Rd. So. #105B, Cottage Grove, MN 55016. The Public Safety Department conducted a background investigation of Ruimin Jiang and did not find anything that would constitute a basis for denial of the application. Staff also searched for possible disciplinary actions posted by the MN Department of Health Office of Unlicensed Complementary and Alternative Health Care Practice and did not find any actions against Ruimin Jiang. Massage Therapists must meet one of the following: • Graduation from an institution or program in massage therapy that is accredited by an accrediting agency recognized by the United States Department of Education. • Passing the Massage and Bodywork Licensing Examination {MBLEx) administered by the Federation of State Massage Therapy Boards {FSMTB), or the National Certification Exam for Therapeutic Massage {NCETM) or National Certification Exam for Therapeutic. The City of Cottage Grove requires that proof of education/certification in compliance with our City Code be sent directly to us from the institution, program, or examining board. Austin Massage Academy in Austin, TX, verified that Jiang graduated on June 10, 2019, and that she has received her MBLEx, which is valid and current. These records meet the requirements outlined in the City code. Should the Council grant approval, Ruimin Jiang and Ross Alber Ulmer will jointly operate Health Investments LLC, a Massage Therapy business located at 8471 East Point Douglas Road South #105B. 2 Recommendation Authorize issuance of a massage therapist and massage business license to Ruimin Jiang operating as Health Investments LLC, located at 8471 East Point Douglas Road South #105B, Cottage Grove, MN 55016. Attachments 1. Massage Therapist and Business License Application Health Investments 1 City Council Action Request 7.M. Meeting Date 7/16/2025 Department Administration Agenda Category Action Item Title 2025-2026 Sergeants Labor Contract - Uniform Card Addendum Staff Recommendation Approve the uniform card Memorandum of Understanding as an addendum to the 2025-2026 Sergeants' labor contract. Budget Implication N/A Attachments 1. Memo - Sgts Uniform Card MOU 2. Sgts Uniform Card MOU Background Since 2007, the City has provided Police Officers and Sergeants an individual uniform credit card to make uniform related purchases. Each employee is assigned a card once they pass their probationary period. Per IRS guidelines, employees must submit qualifying receipts for approved purchases. Otherwise, non-qualifying purchase amounts are put on their last check of the year as taxable income. During negotiations for the current labor contracts, 2025-2026, the City proposed doing away with uniform cards and putting the full amount on the employees’ payroll checks as taxable income. This would lessen the administrative burden on both the employee and City of keeping track of receipts. The City would also save time by not ordering cards, following up on fraud on the cards and not processing the December taxable income amounts on payroll. The Police Officers were not interested in giving up their cards during negotiations and the City dropped the proposal. The Sergeants did agree to the change and relinquished their cards for 2025. They have since requested that they get their cards back for 2026. Since the Police Officers still have their cards, staff does not object to giving the Sergeants back their cards for 2026. It affects 8 Sergeants. Staff has prepared a memorandum of understanding (MOU) with the union to update the language to reinstate the cards. Recommendation Approve the uniform card MOU as an addendum to the 2025-2026 Sergeants labor contract. The MOU is attached to this memo. To:Honorable Mayor and City Council Members Jennifer Levitt, City Administrator From:Joe Fischbach, HR Manager Date:July 2, 2025 Subject:Sergeants Labor Contract MOU 1 City Council Action Request 7.N. Meeting Date 7/16/2025 Department Administration Agenda Category Action Item Title 2025-2026 49ers Labor Contract - Cell Phone Addendum Staff Recommendation Approve the Cell Phone Memorandum of Understanding as an addendum to the 2025-2026 49ers labor contract. Budget Implication N/A Attachments 1. Memo - 49ers Cell Phone MOU 2. 49ers Cell Phone MOU Background For several years, the City has provided employees with a monthly stipend if they must use their personal cell phone for work related purposes. Department heads recommend which positions get a stipend and the list is approved by the City Administrator. Several members of the 49ers union currently receive the stipend such as Leads and Foreman. It is now recommended that all 49ers union members receive the stipend. All members use their phone in one way or another for work related purposes such as communicating with their supervisor and co-workers, checking emails, entering their time for payroll, accessing the City GIS system, looking up information on the internet and/or dual authentication. Staff have worked with the 49ers business agent and the City Attorney’s office to develop a memorandum of understanding (MOU) regarding cell phone use and the cell phone stipend for union members, which is included with this memo. The proposed stipend follows the City Personnel Policy at $45.00 per month. Recommendation Approve the Cell Phone Memorandum of Understanding as an addendum to the 2025-2026 49ers labor contract. To:Honorable Mayor and City Council Members Jennifer Levitt, City Administrator From:Joe Fischbach, HR Manager Date:July 8, 2025 Subject:49ers Labor Contract MOU 1 City Council Action Request 7.O. Meeting Date 7/16/2025 Department Administration Agenda Category Action Item Title Firefighters Labor Contract (Fire Marshal) Memorandum of Understanding Staff Recommendation Approve the Fire Marshal MOU as an addendum to the 2025-2026 IAFF, Local 2570 labor contract. Budget Implication Included in the Budget Attachments 1. Memo - Fire Marshal MOU 2. Fire Marshal MOU Background Fire Marshal Steve Zaccard resigned on June 10th. The Fire Marshal position was covered by the Non-Represented Pay Plan. Since that time, the Fire department command staff has reviewed and updated the Fire Marshal job description. As part of that review, it was determined that the Fire Marshal should be able to pick up overtime shifts as a primary responder when the schedule allows. If the Fire Marshal does pick up primary responder overtime shifts, there will be increased costs. This is because they will have a higher hourly wage as they work a 2,080 hour schedule, rather than the 2,756 hour schedule the other primary responder’s work. By working some primary responder overtime shifts, the Fire Marshal will be able to maintain their EMS training and skills. They will have limited opportunities to perform EMS duties during their regular workday as they will focus on fire inspections, plan reviews and community life and fire safety education activities. Fire command staff have indicated that they do not believe the Fire Marshal will work enough primary responder overtime shifts to a point where they will not be able to manage the increased payroll costs. The union has also expressed an interest in the Fire Marshal being part of their union. Internal employees interested in the Fire Marshal position have also communicated to the City that they would like it to be a union position. With all those factors, it is determined that it should be a union position. Staff have prepared a memorandum of understanding (MOU) that adds the Fire Marshal position to the current IAFF, Local 2570 labor contract. Recommendation Approve the Fire Marshal MOU as an addendum to the 2025-2026 IAFF, Local 2570 labor contract. To:Honorable Mayor and City Council Members Jennifer Levitt, City Administrator From:Joe Fischbach, HR Manager Date:July 10, 2025 Subject:Firefighters Labor Contract MOU FIRE MARSHAL MEMORANDUM OF UNDERSTANDING The purpose of this Memorandum of Understanding is to assist both Labor and Management in adding the Fire Marshal to the union and labor agreement. This position shall be covered by all terms and conditions as detailed in the 2025-2026 labor agreement, including all MOUs. The following sections of the labor agreement are specifically updated. ARTICLE I - RECOGNITION 1.1 The EMPLOYER recognizes the UNION as the exclusive representative for all full-time firefighters, fire marshal and full-time captains employed by the City of Cottage Grove, Minnesota, who are public employees within the meaning of Minnesota Statute 179A.03, Subdivision 14, excluding supervisory and confidential employees. ARTICLE XXI - SALARY 21.1 Salaries effective January 1, 2025 through December 31, 2026: Fire Marshal- 2025- 2,080 schedule 44.58 46.26 48.49 50.16 51.83 54.06 55.73 Fire Marshal- 2026- 3% COLA & 3% Market Adjustment- 2,080 schedule 47.26 49.03 51.39 53.17 54.94 57.30 59.07 This Memorandum will remain in effect from the date it is signed by both parties through December 31, 2026 or until a successor labor agreement is approved. This Memo may be extended, modified, or eliminated at either parties’ request. ______________________________ ______________________________ Jennifer Levitt, City Administrator Union President Dated_________________________ Dated_________________________ 1 City Council Action Request 7.P. Meeting Date 7/16/2025 Department Public Safety Agenda Category Action Item Title Accelerated Firefighter/Paramedic Program Agreement Staff Recommendation Approve the Accelerated Firefighter/Paramedic Recruitment Program agreement for Phillip Wiggins. Budget Implication Approved in the 2025 Budget. Attachments 1. Accelerated Paramedic Program Agreement Wiggins 07.16.25 2. Agreement - Firefighter Paramedic Accelerated Recruitment Phillip Wiggins To: Honorable Mayor and City Council Jennifer Levitt, City Administrator From: Peter J Koerner, Director of Public Safety Jon Pritchard, Deputy Director of Public Safety/Fire Chief Date: July 2, 2025 Subject: ACCELERATED FIREFIGHTER/PARAMEDIC PROGRAM AGREEMENT INTRODUCTION The Cottage Grove Fire Department, as approved by the Cottage Grove City Council at the budget workshop on August 29, 2024, has implemented a program that offers the opportunity for part-time Firefighter/EMTs to become full-time Firefighter/EMTs to seek Paramedic certification while working full-time on the fire department. The goal of the program is to offer a much-cited request from part-time firefighters while increasing the ability for the fire department to recruit highly qualified candidates to serve as full-time Firefighter/Paramedics with the Cottage Grove Fire Department. Due to the fire department’s size and demand for EMS services, it is critical to have all full-time Firefighters at the paramedic certification level. Firefighter/EMTs will help support department operations while they complete Paramedic training. When hired as a Firefighter/EMT, the department will support the firefighter in their pursuit of their Paramedic certification to allow them to become a full-time Firefighter/Paramedic. The department will pay for their tuition, fees and learning materials, and their salary will support their time in class and clinical experiences. The department recognizes that the cost of paramedic training is significant and the time, effort, and financial investment of those in the Accelerated Paramedic Program is significant. Due to this significant investment in the individuals in this program, it is appropriate for those that are hired in this program to demonstrate investment into the department and the City of Cottage Grove. To demonstrate this commitment, the fire department proposes the Firefighter/EMTs agree to work for the fire department for at least five (5) years after obtaining their Paramedic certification. A formal agreement has been drafted and has been reviewed by the City Attorney’s Office. Failure to complete Paramedic certification, termination due performance issues and/or leaving the department prior to the five (5) year period will result in a pro-rated repayment requirement for the cost of tuition, fees and learning materials for Paramedic training. The Firefighter will be required to sign this agreement to be employed in the accelerated recruitment program. The department conducted an internal process and identified candidate, Firefighter/EMT Phillip Wiggins. His start date will be July 28, 2025. RECOMMENDATION Approve the Accelerated Firefighter/Paramedic Recruitment Program agreement for Phillip Wiggins. 1 City Council Action Request 7.Q. Meeting Date 7/16/2025 Department IT Department Agenda Category Action Item Title Fiserv Credit Card Payment Application Staff Recommendation Staff recommends the approval of the Fiserv merchant processing application agreement and purchase of the credit card terminal equipment required for accepting payments. Budget Implication Four credit card terminals for $2,400 to accept credit card payments at the Cottage Grove Ice Arena. Monthly and per-transaction fees are outlined in the memo and included in the budget. Attachments 1. CouncilFinnly To: From: Cc: Brian Bluhm, IT Manager Zac Dockter, Director of Parks & Recreation Date: Subject: Introduction The City of Cottage Grove Ice Arena is in the process of implementing new point of sale and scheduling software, Finnly Sports, which was approved by the Mayor and Council at the May 7th, 2025, City Council meeting. As part of the implementation, an integrated credit card processing provider, Fiserv, will provide merchant processing. Fiserv Fiserv, a global fintech and payments leader that enables commerce for a world that never powers down. Millions of businesses benefit from our unmatched network and experience. Utilizing Clover credit card terminals, Fiserv will allow the Cottage Grove Ice Arena to provide credit card and eCheck as a form of payment with the Finnly Sports point of sale system through static and secure mobile devices. Fiserv will replace the Cottage Grove Ice Arena’s current provider, LightSpeed payments. Budget Implications 4 credit card terminals at a cost of $2400 to accept credit card payments at the Cottage Grove Ice Arena. Other fews are as follows: 2.90% V/MC/D (Amex 3.1%) $0.20 per transaction $15/month- CardPointe Gateway/Reporting fee Fiserv ACH (e-check) $10/month 0.25% $0.20 per transaction Staff Recommendation Staff recommends the approval of the Fiserv merchant processing application agreement and purchase of the credit card terminal equipment required for accepting payments. Business Legal Name: DBA Name: Business Address: City:State:Zip: Business Phone:Business Fax: Email: Requested Service Start Date:Is this date flexible? Yes No Products/Services Sold: Fed Tax ID:Fed ID Month/Year Started: Tax Filing Type?(Sole Proprietor, Partnership, Corporation – Public or Private) Tax Exempt Organization? Yes No Number of Employees? Total Gross Annual Sales:Estimated Annual Credit Card Sales: Estimated Average $$ Credit Card Individual Sale Amount: Estimated Highest $$ Credit Card Individual Sale Amount: Application Information for E-Signature The below fields will be used to generate an electronic application for signature. Application Information for E-Signature © 2025 Fiserv, Inc. or its affiliates. Fiserv is a trademark of Fiserv, Inc., registered or used in the United States and foreign countries, and may or may not be registered in your country. All trademarks, service marks and trade names referenced in this material are the property of their respective owners. 2934164 02/25 Signor (Must be officer or controller of private corp., member LLC, or individual only of sole proprietorship): Signor/Owner Name: Signor Title:Signor Email: Signor Percentage ownership in company:%Signor Social Security #: Signor Date of Birth:Signor Home Phone: Signor Home Address: City:State:Zip: Deposit Bank Name (checking only): Bank Phone: Bank Account #:Bank Routing #: Bank Phone: Please complete and return through email to your Sales Consultant. An electronic application will be generated and emailed to you for e-signature. We will need a copy of a voided business check to complete setup of your merchant processing account. Fiserv is driving innovation in Payments, Processing Services, Risk & Compliance, Customer & Channel Management and Insights & Optimization. Our solutions help clients deliver financial services at the speed of life to enhance the way people live and work today. Visit fiserv.com to learn more. Connect with us Contact your sales representative for more information. 1 City Council Action Request 7.R. Meeting Date 7/16/2025 Department Parks and Recreation Agenda Category Action Item Title River Oaks Used Mower Purchase Staff Recommendation Authorize staff to purchase a used Toro 3550 from MTI Distributing for the amount of $24,046.88. Budget Implication $24,046.88 from River Oaks Maintenance Equipment Capital Account Attachments 1. Memo 2. 20250708135729163 To:Honorable Mayor and City Council Jennifer Levitt, City Administrator From:Zac Dockter, Parks and Recreation Director Brenda Malinowski, Finance Director Date:June 26, 2025 Subject:River Oaks Used Mower Purchase Introduction River Oaks staff has been working towards improving the golf experience by increasing turf surrounds at many greens. Doing this increases playability and also brings the course back to the original architectural design intent. Customer response has been quite positive so far. To aid in this effort, staff is recommending the purchase of an additional surrounds/approach mower to help bare the added mowing labor and equipment load. Maintenance staff identified an opportunity to purchase a used Toro 3550 from MTI Distributing (Metro Toro Commercial Dealer) in the amount of $24,046.88. This is approximately 25% of the cost of a new unit. This unit comes from Golden Valley Country Club with 3,000 hours of operation and maintenance records. MTI will fully service the unit which includes over $5,000 in new parts alone. Staff is also recommending the one-year warranty for further assurance on the unit. Staff is confident with operating and repairing this unit as needed and believes it will provide at least 10 years of service to River Oaks. Because this is the second surround/approach mower, it will not require as high volume of use as some comparable units and thus the extended life projection. This is an unbudgeted expense that staff is proposing to pay for with operational revenue. Because the golf course is producing higher than expected revenue to date, management believes there will be sufficient revenue to cover the expense of this request. However, if revenue does not exceed expenses for any reason, staff has the ability to delay one of the capital purchases below to assure operational goals are achieved and the mower purchase does not cause River Oaks a net loss. 1. Range ball machine - $15,000 2. Greens Mower (1) - $70,000 3. Patio Furniture - $70,000 Staff Recommendation Authorize staff to purchase a used Toro 3550 from MTI Distributing for the amount of $24,046.88. 1 City Council Action Request 7.S. Meeting Date 7/16/2025 Department Engineering Agenda Category Action Item Title Hamlet Pond Quote Award Staff Recommendation Adopt Resolution 2025-095 awarding the 2025 Hamlet Pond – Phase 2: Bank Grading and Sediment Removal project to New Look Contracting, Inc. in the amount of $114,481.25, and the appropriate officials are hereby authorized to sign all necessary documents to effectuate these actions. Budget Implication $80,518.75 - Stormwater Utility Fund, $33,962.50 - SWWD Grant Reimbursement Attachments 1. 2025 Hamlet Pond Phase 2 Quote Award Memo 2. 2025 Hamlet Pond Phase 2 Quote Award Resolution 3. Signed Agreement 4. New Look Quote 5. Dynamic Earth and Civil Quote To:Honorable Mayor and City Council Jennifer Levitt, City Administrator From:Joe Fox, PE, Project Engineer Date:July 10, 2025 Re:2025 Hamlet Pond – Phase 2: Bank Grading and Sediment Removal – Quote Award Background Each year the City completes maintenance on City-owned stormwater ponds to stay in compli- ance with the MS4 permit with the MPCA, which requires permit holders to maintain their storm sewer system. Removal of accumulated sediment from ponds is a common maintenance task that restores a pond’s ability to treat stormwater. Earlier this year the city hired a contractor to conduct maintenance on a section of Hamlet Pond. City staff recently asked contractors for quotes to maintain another section of the pond. At the February 5, 2025 City Council meeting, the Council awarded Phase 1 of the project to New Look Contracting to remove sediment and vegetation from a portion of Hamlet Pond. The sediment and vegetation were acting as a dam that kept water levels one to two feet higher in the north part of the pond than they were in the south. Now that this work is largely complete and water flows freely from north to south, the water level in the north has dropped. Phase 2 of the project is necessary for two reasons. First, the drop in water level revealed a steep slope along the west bank of the northern section of the pond. Previously under water, this steep slope is now above water and poses a danger to those walking along the shore of the pond. City staff determined it was necessary to level off the slope along the shore. Second, the drop in water level also revealed large deposits of sediment at the very north end of the pond. This sediment has accumulated over years; it comes into the pond through two inlets. The contractor chosen for Phase 2 of the Hamlet Pond project will grade a flatter slope along the shore and remove a significant amount of sediment from the pond. Discussion The City of Cottage Grove received two pond maintenance quotes for Phase 2. The following table summarizes the results. The quotes received are attached. The low quote for the project was provided by New Look Contracting, Inc. in the amount of $114,481.25. Contractor Quoted Amount New Look Contracting, Inc. $114,481.25 Dynamic Earth & Civil, LLC $175,052.00 Honorable Mayor, City Council, and Jennifer Levitt The South Washington Watershed District awarded a grant to the city for removal of sediment from Hamlet Pond. The grant covers 50% of expenses up to a maximum of $75,000, based on a total project cost of $150,000. Part of the grant proceeds will reimburse the city for money spent on Phase 1 of the Hamlet Pond project. Phase 1 is partially complete but there is remaining work. In the Phase 1 project, $39,075.00 has been paid and an estimated $43,000 will be paid for the remaining work. The estimated cost of the Phase 1 project is $82,075.00 of which $41,037.50 would be reimbursed by the grant. Additional reimbursement for Phase 2 of the project is estimated at $33,962.50. Remaining costs will be paid from the Stormwater Utility Fund. Est. Project Costs SWWD Grant Match Stormwater Fund Phase 1 $82,075.00 $41,037.50 $41,037.50 Phase 2 $114,481.25 $33,962.50 $80,518.75 $196,556.25* $75,000.00** $121,556.25 Recommendation CITY OF COTTAGE GROVE, MINNESOTA RESOLUTION AWARDING THE 2025 HAMLET POND – PHASE 2: BANK GRADING WHEREAS, quotes were requested to provide the necessary work; and WHEREAS, two firms submitted quotes; and WHEREAS, it appears that New Look Contracting, Inc. provided the lowest responsible quote; and WHEREAS, it is the recommendation of the City Engineer that the quote be awarded to New Look Contracting, Inc. in the amount of $114,481.25. NOW THEREFORE BE IT RESOLVED, by the City Council of the City of Cottage Grove, County of Washington, State of Minnesota, that the 2025 Hamlet Pond – Phase 2: Bank Grading and Sediment Removal Project be awarded to New Look Contracting, Inc. in the amount of $114,481.25. Passed this 16th day of July 2025. Myron Bailey, Mayor Attest: Tamara Anderson, City Clerk QUANTITY UNIT UNIT PRICE AMOUNT 1.00 LS 12,000.00 12,000.00 1.00 LS 4,500.00 4,500.00 0.40 ACRE 10,500.00 4,200.00 30.00 TON 55.00 1,650.00 400.00 CY 95.00 38,000.00 30.00 TON 115.00 3,450.00 30.00 TON 115.00 3,450.00 580.00 CY 48.00 27,840.00 2,885.00 SY 2.25 6,491.25 3,000.00 LF 4.00 12,000.00 12.00 LB 75.00 900.00 NOTES: DESCRIPTION 12800 Ravine Parkway South Cottage Grove, MN 55016 GRAND TOTAL $114,481.25 190 SEEDING, MnDOT TYPE WD 185 BIO LOGS 180 ROLLED EROSION PREVENTION MAT 170 TOPSOIL BORROW (LV) 160 RANDOM RIPRAP CLASS IV 150 RANDOM RIPRAP CLASS III 140 EXCAVATION - CHANNEL AND POND (LV) 130 REMOVE EXISTING RIPRAP 120 GRUBBING 110 CONSTRUCTION MATS - All bid line items tied - Standard AGC contract language to prevail on acceptance of this proposal - No retainage to be held on work completed. - All work to be done in 2025 EXCLUDES: - Survey & Staking, Permits, Testing, Traffic Control, Flagging, Dewatering. 100 MOBILIZATION / GENERAL CONDITIONS NLC Estimator:Dylan Libbert ITEM Attn: Joe Fox Date:04/25/2025 Website: NewLookContracting.net Quote To:City of Cottage Grove New Look Contracting 14045 Northdale Blvd Rogers, MN 55374 Phone: 763-241-1596 Fax: 763-241-9196 1 City Council Action Request 7.T. Meeting Date 7/16/2025 Department Engineering Agenda Category Action Item Title 2024 Mill and Overlay Final Payment Staff Recommendation Adopt Resolution 2025-096 approving the final payment to Bituminous Roadways, Inc. for the 2024 Mill and Overlay Project in the amount of $16,097.25. Budget Implication $16,097.25 - Roadway Maintenance Fund Attachments 1. 2025-07-16 CC Final Pay Request MEMO 2. Contractor's Application for Payment #5 3. 2025-07-16 CC Final Pay Request RESOLUTION To: Honorable Mayor and City Council Jennifer Levitt, City Administrator From: Genevieve Tester, EIT, Graduate Engineer Date: July 8, 2025 Re: Final Payment for the 2024 Mill and Overlay Project Background/Discussion The final phase of the three-year Thompson Grove neighborhood road rehabilitation plan—the 2024 Mill and Overlay Project—has been completed. This project included the removal and replacement of the top layer of existing asphalt surface as well as minor spot curb replacements, concrete valley gutter replacement, utility repairs, and ADA improvements. The contractor for the project was Bituminous Roadways, Inc. The contractor began this project in April 2024 and was substantially complete by the end of August 2024. The contractor returned in the spring of 2025 to complete the remaining restoration work. Bituminous Roadways Inc. has satisfactorily completed the work in accordance with the plans and specifications as well as submitted the necessary IC-134 forms and Lien Waivers. The original contract amount was $1,207,693.20. The final construction cost was $1,033,882.14, which is $173,811.06 lower than the original contract amount. This lower cost can be primarily attributed to a high quantity estimate on curb, gutter, and driveway removal and replacement. A signed copy of the Contractor’s Application for Payment No. 5 is attached to this memo. Recommendation It is recommended that the City Council adopt Resolution 2025-096 approving the final payment to Bituminous Roadways, Inc. for the 2024 Mill and Overlay Project in the amount of $16,097.25. Contractor's Application for Payment Owner's Project No.: Engineer's Project No.: Agency's Project No.: 5 From 02/05/25 to 07/07/25 A C D E F F1 F2 G H I J K L Item Quantity Units Unit Price ($) Value of Bid Item (C X E) ($) Quantity Previous Estimate Value Previous Estimate ($) Estimated Quantity Incorporated in the Work Value of Work Completed to Date (E X G) ($) 1 1.00 LS 48,000.00 48,000.00 1.00 48,000.00 1.00 48,000.00 48,000.00 100% - 2 1.00 LS 8,000.00 8,000.00 1.00 8,000.00 1.00 8,000.00 8,000.00 100% - 3 2.00 EA 1,000.00 2,000.00 5.99 5,987.50 5.99 5,987.50 5,987.50 299% (3,987.50) 4 97,600.00 SY 1.00 97,600.00 92,333.00 92,333.00 92,333.00 92,333.00 92,333.00 95% 5,267.00 5 95.00 LF 8.50 807.50 90.00 765.00 90.00 765.00 765.00 95% 42.50 6 44.00 LF 4.00 176.00 44.00 176.00 44.00 176.00 176.00 100% - 7 12.00 SY 28.00 336.00 12.00 336.00 12.00 336.00 336.00 100% - 8 21.00 SY 17.50 367.50 18.00 315.00 18.00 315.00 315.00 86% 52.50 9 871.00 SF 1.60 1,393.60 1,242.59 1,988.14 1,242.59 1,988.14 1,988.14 143% (594.54) 10 97.00 SY 18.50 1,794.50 186.023 3,441.43 186.023 3,441.43 3,441.43 192% (1,646.93) 11 1.00 EA 255.00 255.00 1.00 255.00 1.00 255.00 255.00 100% - 12 1.00 EA 360.00 360.00 1.00 360.00 1.00 360.00 360.00 100% - 13 188.00 LF 8.50 1,598.00 121.17 1,029.95 121.17 1,029.95 1,029.95 64% 568.05 14 1.00 EA 255.00 255.00 1.00 255.00 1.00 255.00 255.00 100% - 15 349.00 LF 62.00 21,638.00 350.58 21,735.96 350.58 21,735.96 21,735.96 100% (97.96) 16 129.00 SY 100.00 12,900.00 152.04 15,204.00 152.04 15,204.00 15,204.00 118% (2,304.00) 17 162.00 SY 105.00 17,010.00 124.94 13,118.70 124.94 13,118.70 13,118.70 77% 3,891.30 18 23.00 SY 95.00 2,185.00 1.50 142.50 1.50 142.50 142.50 7% 2,042.50 19 18.00 SF 27.00 486.00 18.00 486.00 18.00 486.00 486.00 100% - 20 1,083.00 SF 15.00 16,245.00 1,319.40 19,791.00 1,319.40 19,791.00 19,791.00 122% (3,546.00) 21 90.00 SF 74.00 6,660.00 84.00 6,216.00 84.00 6,216.00 6,216.00 93% 444.00 22 1,250.00 SY 28.00 35,000.00 382.64 10,713.92 382.64 10,713.92 10,713.92 31% 24,286.08 23 12.00 SY 44.00 528.00 12.00 528.00 12.00 528.00 528.00 100% - 24 13,000.00 TN 60.00 780,000.00 10,684.43 641,065.80 10,684.43 641,065.80 641,065.80 82% 138,934.20 25 6,850.00 GAL 1.00 6,850.00 5,915.00 5,915.00 5,915.00 5,915.00 5,915.00 86% 935.00 26 1.00 LS 28,100.00 28,100.00 0.79 22,188.00 0.79 22,188.00 22,188.00 79% 5,912.00 27 80.00 TN 34.00 2,720.00 110.56 3,759.04 110.56 3,759.04 3,759.04 138% (1,039.04) 28 1.00 EA 2,055.00 2,055.00 1.00 2,055.00 1.00 2,055.00 2,055.00 100% - 29 143.00 LF 101.00 14,443.00 147.00 14,847.00 147.00 14,847.00 14,847.00 103% (404.00) 30 2.00 EA 3,165.00 6,330.00 2.00 6,330.00 2.00 6,330.00 6,330.00 100% - 31 64.00 LB 27.00 1,728.00 64.00 1,728.00 64.00 1,728.00 1,728.00 100% - 32 1.00 EA 9,135.00 9,135.00 1.00 9,135.00 1.00 9,135.00 9,135.00 100% - 33 2.00 EA 1,250.00 2,500.00 2.00 2,500.00 2.00 2,500.00 2,500.00 100% - 34 2.00 EA 1,495.00 2,990.00 2.00 2,990.00 2.00 2,990.00 2,990.00 100% - 35 44.00 LF 45.00 1,980.00 48.00 2,160.00 48.00 2,160.00 2,160.00 109% (180.00) 36 1.00 LS 21,160.00 21,160.00 1.00 21,160.00 1.00 21,160.00 21,160.00 100% - 37 25.00 CY 46.00 1,150.00 28.00 1,288.00 28.00 1,288.00 1,288.00 112% (138.00) 38 5.00 LB 105.00 525.00 7.00 735.00 14.00 1,470.00 1,470.00 280% (945.00) 39 114.00 SY 10.30 1,174.20 157.50 1,622.25 315.00 3,244.50 3,244.50 276% (2,070.30) 40 10.00 MGAL 210.00 2,100.00 - - - - - 2,100.00 41 1.00 LS 1,500.00 1,500.00 1.00 1,500.00 1.00 1,500.00 1,500.00 100% - 42 89.00 EA 170.00 15,130.00 97.00 16,490.00 97.00 16,490.00 16,490.00 109% (1,360.00) 43 60.00 HR 50.00 3,000.00 - - - - - 3,000.00 44 30.00 HR 150.00 4,500.00 3.72 557.70 3.72 557.70 557.70 12% 3,942.30 45 1.00 EA 1,350.00 1,350.00 1.00 1,350.00 1.00 1,350.00 1,350.00 100% - 46 9.00 EA 280.00 2,520.00 9.00 2,520.00 9.00 2,520.00 2,520.00 100% - 47 5.00 EA 1,150.00 5,750.00 5.00 5,750.00 5.00 5,750.00 5,750.00 100% - 48 9.00 EA 380.00 3,420.00 8.00 3,040.00 8.00 3,040.00 3,040.00 89% 380.00 49 34.00 SF 58.00 1,972.00 37.00 2,146.00 37.00 2,146.00 2,146.00 109% (174.00) 50 100.00 LF 4.10 410.00 80.00 328.00 80.00 328.00 328.00 80% 82.00 Contract Information Bid Item No. CLEARING AND GRUBBING MILL BITUMINOUS PAVEMENT - 2 INCH REMOVE CONCRETE VALLEY GUTTER SALVAGE AND REINSTALL MAILBOX REMOVE PIPE - 2 INCH CIP WATER MAIN REMOVE PIPE - WATER SERVICE REMOVE BITUMINOUS DRIVEWAY PAVEMENT Application Date:Application Period:Application No.: MOBILIZATION 07/07/25 B BASE BID % of Value of Item (J / F) (%) Balance to Finish (F - J) ($) WORK COMPLETED Materials Currently Stored (not in G) ($) SALVAGE AND REINSTALL SIGN REMOVE CONCRETE CURB AND GUTTER TEMPORARY MAILBOX TRAFFIC CONTROL Description REMOVE BITUMINOUS TRAIL REMOVE CONCRETE SIDEWALK OR PEDESTRIAN RAMP 6 INCH CONCRETE PEDESTRIAN CURB RAMP TRUNCATED DOME PANEL PATCH BITUMINOUS PAVEMENT - STREET PATCH BITUMINOUS DRIVEWAY BITUMINOUS MIXTURE - TYPE SP 9.5 WEARING COURSE REMOVE AND REPLACE CONCRETE CURB AND GUTTER CONCRETE VALLEY GUTTER REMOVE AND REPLACE 7 INCH CONCRETE DRIVEWAY REMOVE AND REPLACE 6 INCH CONCRETE DRIVEWAY 6 INCH CONCRETE HYDRANT ACCESS PAD 6 INCH GATE VALVE AND BOX DIP FITTINGS - WATER MAIN HYDRANT Value of Work Completed to Date Progress Estimate - Unit Price Work City of Cottage Grove Bolton & Menk, Inc. Bituminous Roadways, Inc. 2024 Mill and Overlay Improvements Owner: 0N1.132557Engineer: Contractor: Project: Contract: PREVIOUS ESTIMATE CORPORATION STOP - 1 INCH CURB STOP AND BOX - 1 INCH BITUMINOUS MATERIAL FOR TACK BITUMINOUS INCENTIVE AGGREGATE BASE, VIRGIN CLASS 5 CONNECT TO EXISTING WATERMAIN WATER MAIN PIPE - 6 INCH DUCTILE IRON CL 52, INCL POLY APPLICATION OF WATER FOR TURF ESTABLISHMENT EROSION CONTROL SUPERVISOR STORM DRAIN INLET PROTECTION (ERO-9) STREET SWEEPER WITH OPERATOR SKIDSTEER (BOBCAT) WITH OPERATOR WATER SERVICE LINE - 1 INCH TYPE K COPPER TEMPORARY WATER SERVICE TOPSOIL BORROW - LOAM (LV) SEEDING MNDOT MIX 25-151 HYDRAULIC MATRIX TYPE MULCH 4 INCH DASHED LINE - MULTI COMP GR IN REMOVE AND REPLACE CASTING CATCH BASIN (R 3067-VB) ADJUST VALVE BOX ADJUST MANHOLE CASTING (INCL RINGS) REMOVE AND REPLACE VALVE BOX TOP SECTION AND COVER SIGN PANEL - TYPE C Unit Price EJCDC C-620 Contractor's Application for Payment (c) 2018 National Society of Professional Engineers for EJCDC. All rights reserved.1 of 2 Contractor's Application for Payment Owner's Project No.: Engineer's Project No.: Agency's Project No.: 5 From 02/05/25 to 07/07/25 A C D E F F1 F2 G H I J K L Item Quantity Units Unit Price ($) Value of Bid Item (C X E) ($) Quantity Previous Estimate Value Previous Estimate ($) Estimated Quantity Incorporated in the Work Value of Work Completed to Date (E X G) ($) Contract Information Bid Item No. Application Date:Application Period:Application No.: 07/07/25 B % of Value of Item (J / F) (%) Balance to Finish (F - J) ($) WORK COMPLETED Materials Currently Stored (not in G) ($)Description Value of Work Completed to Date Progress Estimate - Unit Price Work City of Cottage Grove Bolton & Menk, Inc. Bituminous Roadways, Inc. 2024 Mill and Overlay Improvements Owner: 0N1.132557Engineer: Contractor: Project: Contract: PREVIOUS ESTIMATE 51 400.00 LF 3.10 1,240.00 341.00 1,057.10 341.00 1,057.10 1,057.10 85% 182.90 52 874.00 LF 4.10 3,583.40 846.00 3,468.60 846.00 3,468.60 3,468.60 97% 114.80 53 25.00 LF 10.10 252.50 13.00 131.30 13.00 131.30 131.30 52% 121.20 54 3.00 EA 210.00 630.00 3.00 630.00 3.00 630.00 630.00 100% - 55 2.00 EA 950.00 1,900.00 2.00 1,900.00 2.00 1,900.00 1,900.00 100% - 1,207,693.20$ 1,031,524.89$ 1,033,882.14$ -$ 1,033,882.14$ 86%173,811.06$ BASE BID TOTAL: DECIDUOUS TREE 2.5" CAL 4 INCH SOLID LINE - MULTI COMP GR IN 4 INCH DOUBLE SOLID LINE - MULTI COMP GR IN 12 INCH SOLID LINE - MULTI COMP GR IN PAVEMENT MESSAGE (ARROWS) - MULTI COMP GR IN Unit Price EJCDC C-620 Contractor's Application for Payment (c) 2018 National Society of Professional Engineers for EJCDC. All rights reserved.2 of 2 CITY OF COTTAGE GROVE CITY COUNCIL RESOLUTION NO. 2025-096 RESOLUTION APPROVING THE FINAL PAYMENT IN THE AMOUNT OF $16,097.25 TO BITUMINOUS ROADWAYS, INC. FOR THE 2024 MILL AND OVERLAY PROJECT WHEREAS, the City Engineer has certified that work has been satisfactorily completed; and WHEREAS, the original total contract amount was $1,207,693.20. The final con- struction cost was $1,033,882.14, which is $173,811.06 less than the contract amount. The reduced construction cost was due to a high quantity estimate on curb, gutter, and driveway removal and replacement; and WHEREAS, the project has been satisfactorily completed in accordance with the contract plans and specifications. NOW THEREFORE BE IT RESOLVED, by the City Council of the City of Cottage Grove, County of Washington, State of Minnesota, that $16,097.25 is paid to Bituminous Roadways, Inc. for the final payment for the 2024 Mill and Overlay Project. Passed this 16th day of July, 2025. Myron Bailey, Mayor Attest: Tamara Anderson, City Clerk 1 City Council Action Request 7.U. Meeting Date 7/16/2025 Department Engineering Agenda Category Action Item Title High Zone Raw Water Main - Change Order #2 Staff Recommendation Approve Change Order #2 for the reduction in casing pipe size from 42” to 36”. This will decrease the contract total by ($37,800.00) to a total revised contract amount of $4,894,098.00. Budget Implication $37,800 reduction in project costs. Attachments 1. High Zone Raw Water Main_CO2_07162025 2. High Zone Change Order 2 SEH Signed To:Honorable Mayor and City Council Jennifer Levitt, City Administrator From:Ryan Burfeind, P.E., Public Works Director Date:July 9, 2025 Re:High Zone Raw Water Main Project - Change Order #2 Background On May 10, 2024, the City received a grant from the 3M Settlement for the High Zone Raw Water Main project. This project will provide the raw water mains necessary to convey the water from wells 11 and 12 to the future Intermediate Zone Water Treatment Plant. Bids for this project were received on March 20, 2025. The project was awarded to A-1 Excavating LLC in the amount of $5,134,648.00. Previously approved Change Order #1 revised the contract amount to $4,931,898.00. There is a 42” steel casing pipe proposed that is used to tunnel under 80th Street South. The 20” water main is then installed through that casing pipe. The contractor has requested that the casing pipe be reduced from a 42” steel pipe to a 36” steel pipe. SEH has reviewed the proposed pipe size reduction and agrees that it will still allow enough room for the 20” water main pipe. Discussion This Change Order reduces the size of the steel casing pipe from 42” to 36” for Bid Item 72 Casing Pipe. The reduction in size reduces the potential for running into obstructions and should reduce the time needed to complete the work, while still being able to carry the 20” water main as designed. The Contract Unit Price for the 42” steel casing pipe was $1,230.00/LF. The price for the 36” steel casing pipe is $1,090.00/LF. Therefore, the total Change Order will result in a deduction to the project in the amount of ($37,800.00), resulting in a total revised contract amount of $4,894,098.00. Recommendation It is recommended that the City Council approve Change Order #2 for the reduction in casing pipe size from 42” to 36”. This will decrease the contract total by ($37,800.00) to a total revised contract amount of $4,894,098.00. Engineers | Architects | Planners | Scientists Short Elliott Hendrickson Inc., 3535 Vadnais Center Drive, St. Paul, MN 55110 -3507 651.490.2000 | 800.325.2055 | 888.908.8166 fax | sehinc.com SEH is 100% employee-owned | Affirmative Action –Equal Opportunity Employer CHANGE ORDER City Of Cottage Grove 7/9/2025 OWNER DATE 179132 2 OWNER'S PROJECT NO. CHANGE ORDER NO. High Zone Raw Water Main Project 179132 71.50 PROJECT DESCRIPTION SEH FILE NO. The following changes shall be made to the contract documents: Description: This change order is for the reduction in casing pipe diameter for the jack and bore across 80th Street in Cottage Grove, Minnesota. The contractor is requesting a reduction in casing pipe diameter from 42" to 36" for item 72 "Casing Pipe". The contract unit price orignally stated $1,230/LF and would be reduced to account for the pipe size reduction with a reflected unit price of $1,090/LF. The realized total savings for 270 LF of pipe equals $37,800. Purpose of Change Order: The use of a smaller casing pipe will be utilized as we cross 80th Street eliminating the need for a intermediate pipe and increasing a sucessful jack and bore operation. Reducing the casing pipe size will reduce the potential of being obstructed and reduce costs and time to complete the work. Basis of Cost: Actual Estimated Attachments (list supporting documents) Additional Work Authorization Contract Status Time Cost Original Contract April 2, 2025 $5,134,648.00 Net Change Prior C.O.’s 1 to 1 May 7, 2025 ($202,750.00) Change this C.O. July 9, 2025 ($37,800.00) Revised Contract July 9, 2025 $4,894,098.00 Recommended for Approval: Short Elliott Hendrickson Inc. by Kyle R. Anderson, PE Agreed to by Contractor: Approved for Owner: BY A-1 Excavating LLC BY City Of Cottage Grove TITLE TITLE Distribution Contractor 2 Owner 1 Project Representative 1 SEH Office 1 x:\ae\c\cottg\184790\7-const-svcs\73-app-pymt\change order\high zone change order 2.docx Project Manager 1 City Council Action Request 7.V. Meeting Date 7/16/2025 Department Administration Agenda Category Action Item Title Easement Acquisition - East Point Douglas Road and Jamaica Avenue Reconstruction and Signal Project (Holiday) Staff Recommendation Approve the Stipulation of Settlement for Parcel 10 by and between Holiday Stationstores, LLC and the City, authorizing the execution of a Settlement Agreement and payment of the remaining balance of $132,000. Budget Implication N/A Attachments 1. 7-16-25 Council Memo re Approve Settlement Agmts. Parcel 10 v1 To:Mayor and Council Members From:Kori Land and Matthew Ziebarth, City Attorneys’ Office Date:July 16, 2025 Subject:East Point Douglas Road and Jamaica Avenue Reconstruction and Signal Project - Easement Acquisition - Holiday Background: On October 19, 2022, by Resolution No. 2022-141, the City Council authorized City officers and agents to acquire permanent and temporary easements for the East Point Douglas Road and Jamaica Avenue Reconstruction and Signal Project (the “Project”) by voluntary negotiation or through eminent domain. The last two outstanding Parcels on the Project are Parcels 10 (Holiday East) and 16 (Target). On November 28, 2022, the City extended a last written offer to Holiday East for a total sum of $300,000. Holiday East rejected the last written offer, and a Commissioners Hearing was scheduled to determine the value of damages due to Holiday East. Before a Commissioner’s Hearing was held, the parties entered discussions to settle all damages claimed for the Project and have agreed in principle to settle Parcel 10 for the same amount as the last written offer (the “Agreement”). The Agreement stipulates that the Commissioner’s award damages is as follows: •Parcel 10 (Holiday East), 8799 East Point Douglas Road S. The City will pay the total sum of $300,000.00 in exchange for a full and final settlement of all claims arising from the takings and the Project. This is the same amount as the Council previously authorized amount for a last written offer. The City previously deposited $168,000 with the Washington County District Court for Parcel 10. $132,000 would be owed. After approving this Agreement, only Parcel 16 (Target) remains unsettled. A resolution with Target is forthcoming. It is recommended that the City Council consider and approve the Parcel 10 settlement and authorize execution of a Settlement Agreement and payment of the balance of the settlement amount to Holiday Stationstores, LLC. Action Item: Approve the Stipulation of Settlement for Parcel 10 by and between Holiday Stationstores, LLC and the City, authorize the execution of a Settlement Agreement and payment of the remaining balance of $132,000. 1 City Council Action Request 7.W. Meeting Date 7/16/2025 Department Engineering Agenda Category Action Item Title Irrigation Audits - Approval of Contractor Agreements Staff Recommendation Approve the Agreements for Services with Ellis Irrigation and Lawn Pride Irrigation & Groundworks. Budget Implication Up to $15,000 - Water Utility Fund Attachments 1. 2025-7-8 CC Memo - Irrigation Audits 2. Agreement for Contractor Services - Lawn Pride Irrigation (Cottage Grove) 7.8.25 3. Agreement for Contractor Services - Ellis Irrigation (Cottage Grove) 7.8.25(6) To:Honorable Mayor and City Council Members Jennifer Levitt, City Administrator From:Joe Fox, PE, Project Engineer Date:July 8, 2025 Subject:Irrigation Audits – Approval of Contractor Agreements At the April 16, 2025 City Council meeting, the Council approved the annual Water Conservation Program. As part of this program, the city offers its residents irrigation system audits at no cost to residents. The audit is an assessment of a single-family or HOA irrigation system by a professional who points out maintenance and equipment improvements that could save water and help the lawn look better. Auditors might suggest upgrading to a smart irrigation controller box that saves water by monitoring rain reports and automatically adjusting the watering schedule. This eliminates running the irrigation system during rainstorms. Auditors also typically find issues such as leaks and broken sprinkler heads. The auditors will recommend water saving upgrades that the residents can make. The city pays only for the audit. Residents are responsible for the cost of all irrigation system repairs. The city has chosen two local contractors to carry out the audits this year: Ellis Irrigation and Lawn Pride Irrigation & Groundworks. Both contractors are Certified Landscape Irrigation Auditors who have worked for other cities on similar programs. The contractors will be paid for the audits according to the fee table below, which is based on the number of irrigation zones in residents’ yards. The city has up to $15,000 budgeted for irrigation audits. Zones Fee Per Audit 1 to 5 $150 6 to 8 $200 9 to 12 $250 Over 12 $25 per zone not exceed $2,500 At the April 16th Council meeting, the council approved a contract with Water in Motion. Irrigation audits were part of that contract. However, that contractor was unable to fit the audits into his schedule this year, so city staff reached out to other contractors. The irrigation audits have been advertised to residents on the city website and in the annual Water Quality Report. To date, 37 residents in single-family homes and one HOA have signed up for audits. The audits will be completed by the middle of August 2025. Recommendation City of Cottage Grove – Agreement for Contractor Services Page 1 of 8 AGREEMENT FOR SERVICES 2025 Irrigation Audits THIS AGREEMENT (“Agreement”) is made and executed this ___ day of ____________, 2025, by and between the City of Cottage Grove, 12800 Ravine Parkway, Cottage Grove, Minnesota 55016, (“City”) and Lawn Pride Irrigation, 19587 Kirby Avenue South, Hastings, Minnesota 55033 (“Contractor”). WHEREAS, the City has accepted the proposal of the Contractor for certain Services; and WHEREAS, Contractor desires to perform the Services for the City under the terms and conditions set forth in this Agreement. NOW, THEREFORE, in consideration of the mutual consideration contained herein, it is hereby agreed as follows: 1. SERVICES. a. City agrees to engage Contractor as an independent contractor for the purpose of performing certain Services (“Services”) as outlined herein and defined in the following documents: i. Perform audits on the irrigation systems of all homes listed in Exhibit A. ii. Audits shall consist of approximately 1.0 to 1.5 hours spent at each single- family home; the Contractor shall complete the audit form shown in Exhibit B. iii. Contractor is responsible for calling or emailing each homeowner or HOA representative identified in Exhibit A to arrange an audit time. iv. Audits for all homes and/or HOAs listed in Exhibit A shall be finished by August 15, 2025. v. Contractor shall only perform those services necessary to obtain the requisite irrigation audit information. City is not responsible for the payment of any costs associated with any irrigation repair or maintenance that may be recommended by the Contractor or requested by any property owner identified in Exhibit A as a result of the Contractor’s audit. Exhibits A & B shall hereinafter be collectively referred to as the “Exhibits.” Where the terms and conditions of this Agreement and those terms and conditions included in the Exhibits specifically conflict, the terms of this Agreement shall apply. City of Cottage Grove – Agreement for Contractor Services Page 2 of 8 b. Contractor covenants and agrees to provide the Services to the satisfaction of the City in a timely fashion, as set forth in this Agreement and the Exhibits, subject to Section 8 of this Agreement. c. Contractor agrees to comply with all federal, state, and local laws and ordinances applicable to the Services to be performed under this Agreement, including all safety standards. The Contractor shall be solely and completely responsible for conditions of the job site, including the safety of all persons and property during the performance of the Services. The Contractor represents and warrants that it has the requisite training, skills, and experience necessary to provide the Services and is appropriately licensed and has obtained all permits from all applicable agencies and governmental entities. d. Contractor warrants that they are currently a Certified Landscape Irrigation Auditor (“CLIA”) and follows the Certified Code of Ethics for CLIA. Contractor shall provide the City with proof of CLIA certification upon request. 2. PAYMENT. a. City agrees to pay the Contractor for the audit Services performed based on the number of zones within the irrigation system for each property identified under Exhibit A at the following rates: i. 1 to 5 zones: $150 per audit. ii. 6 to 8 zones: $200 per audit. iii. 9 to 12 zones: $250 per audit. iv. Over 12 zones: $25 per zone not to exceed $2,500 in total. b. Any changes in the scope of the work of the Services that may result in an increase to the compensation due the Contractor shall require prior written approval by the authorized representative of the City or by the City Council. The City will not pay additional compensation for Services that do not have prior written authorization. c. Contractor shall submit one (1) request for payment to the City on or before August 15, 2025, when all properties identified in Exhibit A have been audited. This request shall include evidence that each property was audited, including, but not limited to, submission of the completed audit form for each property identified in Exhibit A. 3. TERM. The term of this Agreement shall commence on the date listed in the initial paragraph of this Agreement and terminate on August 16, 2025. This Agreement may be extended upon the written mutual consent of the parties for such additional periods as they deem appropriate, and upon the same terms and conditions as herein stated. City of Cottage Grove – Agreement for Contractor Services Page 3 of 8 4. TERMINATION AND REMEDIES. a. Termination for Convenience. This Agreement may be terminated by either party upon thirty (30) days’ written notice delivered to the other party at the addresses listed in Section 14 of this Agreement. Upon termination under this provision, if there is no default by the Contractor, Contractor shall be paid for Services rendered and reimbursable expenses incurred through the effective date of termination. b. Termination Due to Default. This Agreement may be terminated by either party upon written notice in the event of substantial failure by the other party to perform in accordance with the terms of this Agreement. The non-performing party shall have fifteen (15) calendar days from the date of the termination notice to cure or to submit a plan for cure that is acceptable to the other party. c. Remedies. Notwithstanding the above, the Contractor shall not be relieved of liability to the City for damages sustained by the City as a result of any breach of this Agreement by the Contractor. The City may, in such event: i. Withhold payments due to the Contractor for the purpose of set-off until such time as the exact amount of damages due to the City is determined. ii. Perform the Services, in which case, the Contractor shall within thirty (30) days after written billing by the City, reimburse the City for any costs and expenses incurred by the City. The rights or remedies provided for herein shall not limit the City, in case of any default by the Contractor, from asserting any other right or remedy allowed by law, equity, or by statute. d. Upon termination of this Agreement, the Contractor shall furnish to the City copies or duplicate originals of all documents or memoranda prepared for the City not previously furnished. 5. SUBCONTRACTORS. Contractor shall not enter into subcontracts for any of the Services provided for in this Agreement without the express written consent of the City, unless specifically provided for in the Exhibits. The Contractor shall pay any subcontractor involved in the performance of this Agreement within the ten (10) days of the Contractor’s receipt of payment by the City for undisputed services provided by the subcontractor. 6. STANDARD OF CARE. In performing its Services, Contractor will use that degree of care and skill ordinarily exercised, under similar circumstances, by reputable members of its profession in the same locality at the time the Services are provided. 7. INSPECTION OF WORK. The City reserves the right to inspect any audit information obtained by the Contractor in the course of performing the Services under this Agreement. City of Cottage Grove – Agreement for Contractor Services Page 4 of 8 8. DELAY IN PERFORMANCE. Neither City nor Contractor shall be considered in default of this Agreement for delays in performance caused by circumstances beyond the reasonable control of the nonperforming party. For purposes of this Agreement, such circumstances include, but are not limited to, abnormal weather conditions; floods; earthquakes; fire; epidemics; war, riots, and other civil disturbances; strikes, lockouts, work slowdowns, and other labor disturbances; sabotage; judicial restraint; and inability to procure permits, licenses or authorizations from any local, state, or federal agency for any of the supplies, materials, accesses, or services required to be provided by either City or Contractor under this Agreement. If such circumstances occur, the nonperforming party shall, within a reasonable time of being prevented from performing, give written notice to the other party describing the circumstances preventing continued performance and the efforts being made to resume performance of this Agreement. 9. CITY’S REPRESENTATIVE. The City has designated Joe Fox to act as the City’s representative with respect to the Services to be performed under this Agreement. He shall have complete authority to transmit instructions, receive information, interpret, and define the City’s policy and decisions with respect to the Services covered by this Agreement. 10. PROJECT MANAGER AND STAFFING. The Contractor has designated Shawn Lanning to be the primary contact for the City in the performance of the Services. He shall be assisted by other staff members as necessary to facilitate the completion of the Services in accordance with the terms established herein. Contractor may not remove or replace these designated staff without the approval of the City. 11. INDEMNIFICATION. a. Contractor and City each agree to defend, indemnify, and hold harmless each other, its agents and employees, from and against legal liability for all claims, losses, damages, and expenses to the extent such claims, losses, damages, or expenses are caused by its negligent acts, errors, or omissions. In the event claims, losses, damages, or expenses are caused by the joint or concurrent negligence of Contractor and City, they shall be borne by each party in proportion to its own negligence. b. Contractor shall indemnify City against legal liability for damages arising out of claims by Contractor’s employees or subcontractors, including all liens. City shall indemnify Contractor against legal liability for damages arising out of claims by City’s employees or subcontractors. 12. INSURANCE. During the performance of the Services under this Agreement, Contractor shall maintain the following insurance: a. Commercial General Liability Insurance, with a limit of $2,000,000 for any number of claims arising out of a single occurrence. b. Workers’ Compensation Insurance in accordance with statutory requirements. City of Cottage Grove – Agreement for Contractor Services Page 5 of 8 c. Automobile Liability Insurance, with a combined single limit of $2,000,000 for each person and $2,000,000 for each accident. Contractor shall furnish the City with certificates of insurance, which shall include a provision that such insurance shall not be canceled without written notice to the City. The City shall be named as an additional insured on the Commercial General Liability Insurance policy. 13. WARRANTIES. Contractor warrants and guarantees that title to all work, materials, and equipment covered by any invoice, will pass to City no later than the final completion date of all Services. 14. NOTICES. Notices shall be communicated to the following addresses: If to City: City of Cottage Grove 12800 Ravine Parkway Cottage Grove, MN 55016 Attention: Jennifer Levitt Or emailed: jlevitt@cottagegrovemn.gov If to Contractor: Lawn Pride Irrigation 19587 Kirby Avenue South Hastings, MN 55033 Attention: Shawn Lanning Or emailed: lawnpridemn@gmail.com 15. INDEPENDENT CONTRACTOR STATUS. All services provided by Contractor, its officers, agents and employees pursuant to this Agreement shall be provided as employees of Contractor or as independent contractors of Contractor and not as employees of the City for any purpose. 16. GENERAL PROVISIONS. a. Assignment. This Agreement is not assignable without the mutual written agreement of the parties. b. Waiver. A waiver by either City or Contractor of any breach of this Agreement shall be in writing. Such a waiver shall not affect the waiving party’s rights with respect to any other or further breach. c. Nondiscrimination. Contractor agrees that in the hiring of employees to perform Services under this Agreement, Contractor shall not discriminate against any person by reason of any characteristic protected by state or federal law. City of Cottage Grove – Agreement for Contractor Services Page 6 of 8 d. Governing Law. This Agreement shall be construed in accordance with the laws of the State of Minnesota and any action must be venued in Washington County District Court. e. Amendments. Any modification or amendment to this Agreement shall require a written agreement signed by both parties. f. Severability. If any term of this Agreement is found to be void or invalid, such invalidity shall not affect the remaining terms of this Agreement, which shall continue in full force and effect. g. Data Practices Compliance. All data collected by the City pursuant to this Agreement shall be subject to the Minnesota Government Data Practices Act, Minnesota Statutes, Chapter 13. h. Entire Agreement. This Agreement constitutes the entire agreement of the parties and supersedes all prior communications, understandings and agreements relating to the subject matter hereof, whether oral or written. [The remainder of this page is intentionally left blank] City of Cottage Grove – Agreement for Contractor Services Page 7 of 8 CITY OF COTTAGE GROVE By: _______________________________ Myron A. Bailey, Mayor By: _______________________________ Tamara Anderson, City Clerk EXHIBIT A ID Name:Property address:Email:Phone number: 1 Jason Voss 6815 cattail Court S jrv675@gmail.com 612.703.1784 2 Jennifer Rechtfertig 8660 Indian Blvd S Jennysplace_1656@yahoo.com 9209121487 3 Jennifer Young 8899 Jewel Ave. South youngjennifer91@msn.com 6512089543 4 Jerome Schneider 9576 Dunes Avenue Jeromegschneider@gmail.com 6512308276 5 JohnMark Sill 6597 Janero Bay South forge.methyl.0n@icloud.com 6127495355 6 Juan Garcia 9847 77th Street Ct S garcia7701@yahoo.com 9152357779 7 Kathy Garcia 6020 Iden Ave S kathyp.garcia@outlook.com 6514925747 8 Kevin Poindexter 6814 91st St S Kevin.d.poindexter@gmail.com 6123848357 9 Kevin Rasmussen 9597 Dunes Ln Cottage Grove MN 55016 rasmussen.kevin4@gmail.com 6123068133 10 May S. Vang 6580 Janero Bay S maywameng@gmail.com 6512360675 11 Mia Naseth-Phillips 8330 75th St S orangemadeline@hotmail.com 6516759481 12 Mitch Linder 8905 Jewel Ave S woodbejane@live.com 651-399-8227 13 Paul Virgin 6740 Innsdale Ave So Thevirgins@comcast.net 6512146827 14 Rachel Cullen 6314 63rd St. S.Rmcullen9@gmail.com 7636148227 15 Ryan Fleming 9530 Dunes Ln rmfleming2010@gmail.com 6128108093 16 Somy Xiong 6654 Wildflower Drive S. somy.xiong@gmail.com 651-795-8095 17 Stacy Sommers 6785 93rd Bay S stacy.m.sommers@gmail.com 9523808062 18 Terry Raymond 6399 Hearthstone Ave tray4336@msn.com 6515586951 19 Tom Koppe 8851 Johansen Ave S Koppier57@hotmail.com 612-730-6058 20 Nellie Auge 6155 85th Street S no email 612-240-3485 Landscape Auditor Last Name First Name Company Phone Number Date/Time of Audit Cottage Grove Customer Last Name First Name Address Phone Email Water pressure from PVB or water faucet Make/Model of Original Controller Make/Model of New Smart Controller Make/Model of Backflow Device Make/Model of Rain Sensor Number of Zones Start Time Days of Irrigation City of Cottage Grove Yard Irrigation Audit EXHIBIT B Zone 1 2 3 4 5 6 Notes Broken lines (Yes, No) Is drip zone combined with heads? (Yes, No) Total length of drip irrigation (ft) Original Zone Run Time (in minutes) Total number of rotary heads in zone Total number of spray heads in zone Head to head coverage (Yes, No) Landscape overgrown or obstruction affecting spray (# heads affected) Recommended Run Time Does zone come on? (Yes/No) Shade % Number of Dry Spots Zone location description (back yd, front yd, right side etc) Valve / Wires properly functioning? (OK/ Not OK) Broken, missing head/nozzle? (# of heads with issue) Total number of rotary nozzle heads in zone Rotary throw (ft) Spray throw (ft) Rotary nozzle throw (ft) Drip spacing between emitters (ft) # of Emitters Low/high head or angled head Heads need arc adjustment (Yes, No) Recommendations General: Zone Specific:Est Price Zone 1 Zone 2 Zone 3 Zone 4 Zone 5 Zone 6 Zone 7 Zone 8 Total Price City of Cottage Grove – Agreement for Contractor Services Page 1 of 8 AGREEMENT FOR SERVICES 2025 Irrigation Audits THIS AGREEMENT (“Agreement”) is made and executed this ___ day of ____________, 2025, by and between the City of Cottage Grove, 12800 Ravine Parkway, Cottage Grove, Minnesota 55016, (“City”) and Ellis Irrigation, 10140 Grand Forest Lane, Woodbury, Minnesota 55129 (“Contractor”). WHEREAS, the City has accepted the proposal of the Contractor for certain Services; and WHEREAS, Contractor desires to perform the Services for the City under the terms and conditions set forth in this Agreement. NOW, THEREFORE, in consideration of the mutual consideration contained herein, it is hereby agreed as follows: 1. SERVICES. a. City agrees to engage Contractor as an independent contractor for the purpose of performing certain Services (“Services”) as outlined herein and defined in the following documents: i. Perform audits on the irrigation systems of all homes listed in Exhibit A. ii. Audits shall consist of approximately 1.0 to 1.5 hours spent at each single- family home; the Contractor shall complete the audit form shown in Exhibit B. iii. Contractor is responsible for calling or emailing each homeowner or HOA representative identified in Exhibit A to arrange an audit time. iv. Audits for all homes and/or HOAs listed in Exhibit A shall be finished by August 15, 2025. v. Contractor shall only perform those services necessary to obtain the requisite irrigation audit information. City is not responsible for the payment of any costs associated with any irrigation repair or maintenance that may be recommended by the Contractor or requested by any property owner identified in Exhibit A as a result of the Contractor’s audit. Exhibits A & B shall hereinafter be collectively referred to as the “Exhibits.” Where the terms and conditions of this Agreement and those terms and conditions included in the Exhibits specifically conflict, the terms of this Agreement shall apply. City of Cottage Grove – Agreement for Contractor Services Page 2 of 8 b. Contractor covenants and agrees to provide the Services to the satisfaction of the City in a timely fashion, as set forth in this Agreement and the Exhibits, subject to Section 8 of this Agreement. c. Contractor agrees to comply with all federal, state, and local laws and ordinances applicable to the Services to be performed under this Agreement, including all safety standards. The Contractor shall be solely and completely responsible for conditions of the job site, including the safety of all persons and property during the performance of the Services. The Contractor represents and warrants that it has the requisite training, skills, and experience necessary to provide the Services and is appropriately licensed and has obtained all permits from all applicable agencies and governmental entities. d. Contractor warrants that they are currently a Certified Landscape Irrigation Auditor (“CLIA”) and follows the Certified Code of Ethics for CLIA. Contractor shall provide the City with proof of CLIA certification upon request. 2. PAYMENT. a. City agrees to pay the Contractor for the audit Services performed based on the number of zones within the irrigation system for each property identified under Exhibit A at the following rates: i. 1 to 5 zones: $150 per audit. ii. 6 to 8 zones: $200 per audit. iii. 9 to 12 zones: $250 per audit. iv. Over 12 zones: $25 per zone not to exceed $2,500 in total. b. Any changes in the scope of the work of the Services that may result in an increase to the compensation due the Contractor shall require prior written approval by the authorized representative of the City or by the City Council. The City will not pay additional compensation for Services that do not have prior written authorization. c. Contractor shall submit one (1) request for payment to the City on or before August 15, 2025, when all properties identified in Exhibit A have been audited. This request shall include evidence that each property was audited, including, but not limited to, submission of the completed audit form for each property identified in Exhibit A. 3. TERM. The term of this Agreement shall commence on the date listed in the initial paragraph of this Agreement and terminate on August 16, 2025. This Agreement may be extended upon the written mutual consent of the parties for such additional periods as they deem appropriate, and upon the same terms and conditions as herein stated. City of Cottage Grove – Agreement for Contractor Services Page 3 of 8 4. TERMINATION AND REMEDIES. a. Termination for Convenience. This Agreement may be terminated by either party upon thirty (30) days’ written notice delivered to the other party at the addresses listed in Section 14 of this Agreement. Upon termination under this provision, if there is no default by the Contractor, Contractor shall be paid for Services rendered and reimbursable expenses incurred through the effective date of termination. b. Termination Due to Default. This Agreement may be terminated by either party upon written notice in the event of substantial failure by the other party to perform in accordance with the terms of this Agreement. The non-performing party shall have fifteen (15) calendar days from the date of the termination notice to cure or to submit a plan for cure that is acceptable to the other party. c. Remedies. Notwithstanding the above, the Contractor shall not be relieved of liability to the City for damages sustained by the City as a result of any breach of this Agreement by the Contractor. The City may, in such event: i. Withhold payments due to the Contractor for the purpose of set-off until such time as the exact amount of damages due to the City is determined. ii. Perform the Services, in which case, the Contractor shall within thirty (30) days after written billing by the City, reimburse the City for any costs and expenses incurred by the City. The rights or remedies provided for herein shall not limit the City, in case of any default by the Contractor, from asserting any other right or remedy allowed by law, equity, or by statute. d. Upon termination of this Agreement, the Contractor shall furnish to the City copies or duplicate originals of all documents or memoranda prepared for the City not previously furnished. 5. SUBCONTRACTORS. Contractor shall not enter into subcontracts for any of the Services provided for in this Agreement without the express written consent of the City, unless specifically provided for in the Exhibits. The Contractor shall pay any subcontractor involved in the performance of this Agreement within the ten (10) days of the Contractor’s receipt of payment by the City for undisputed services provided by the subcontractor. 6. STANDARD OF CARE. In performing its Services, Contractor will use that degree of care and skill ordinarily exercised, under similar circumstances, by reputable members of its profession in the same locality at the time the Services are provided. 7. INSPECTION OF WORK. The City reserves the right to inspect any audit information obtained by the Contractor in the course of performing the Services under this Agreement. City of Cottage Grove – Agreement for Contractor Services Page 4 of 8 8. DELAY IN PERFORMANCE. Neither City nor Contractor shall be considered in default of this Agreement for delays in performance caused by circumstances beyond the reasonable control of the nonperforming party. For purposes of this Agreement, such circumstances include, but are not limited to, abnormal weather conditions; floods; earthquakes; fire; epidemics; war, riots, and other civil disturbances; strikes, lockouts, work slowdowns, and other labor disturbances; sabotage; judicial restraint; and inability to procure permits, licenses or authorizations from any local, state, or federal agency for any of the supplies, materials, accesses, or services required to be provided by either City or Contractor under this Agreement. If such circumstances occur, the nonperforming party shall, within a reasonable time of being prevented from performing, give written notice to the other party describing the circumstances preventing continued performance and the efforts being made to resume performance of this Agreement. 9. CITY’S REPRESENTATIVE. The City has designated Joe Fox to act as the City’s representative with respect to the Services to be performed under this Agreement. He shall have complete authority to transmit instructions, receive information, interpret, and define the City’s policy and decisions with respect to the Services covered by this Agreement. 10. PROJECT MANAGER AND STAFFING. The Contractor has designated Rick Ellis to be the primary contact for the City in the performance of the Services. He shall be assisted by other staff members as necessary to facilitate the completion of the Services in accordance with the terms established herein. Contractor may not remove or replace these designated staff without the approval of the City. 11. INDEMNIFICATION. a. Contractor and City each agree to defend, indemnify, and hold harmless each other, its agents and employees, from and against legal liability for all claims, losses, damages, and expenses to the extent such claims, losses, damages, or expenses are caused by its negligent acts, errors, or omissions. In the event claims, losses, damages, or expenses are caused by the joint or concurrent negligence of Contractor and City, they shall be borne by each party in proportion to its own negligence. b. Contractor shall indemnify City against legal liability for damages arising out of claims by Contractor’s employees or subcontractors, including all liens. City shall indemnify Contractor against legal liability for damages arising out of claims by City’s employees or subcontractors. 12. INSURANCE. During the performance of the Services under this Agreement, Contractor shall maintain the following insurance: a. Commercial General Liability Insurance, with a limit of $2,000,000 for any number of claims arising out of a single occurrence. b. Workers’ Compensation Insurance in accordance with statutory requirements. City of Cottage Grove – Agreement for Contractor Services Page 5 of 8 c. Automobile Liability Insurance, with a combined single limit of $2,000,000 for each person and $2,000,000 for each accident. Contractor shall furnish the City with certificates of insurance, which shall include a provision that such insurance shall not be canceled without written notice to the City. The City shall be named as an additional insured on the Commercial General Liability Insurance policy. 13. WARRANTIES. Contractor warrants and guarantees that title to all work, materials, and equipment covered by any invoice, will pass to City no later than the final completion date of all Services. 14. NOTICES. Notices shall be communicated to the following addresses: If to City: City of Cottage Grove 12800 Ravine Parkway Cottage Grove, MN 55016 Attention: Jennifer Levitt Or emailed: jlevitt@cottagegrovemn.gov If to Contractor: Ellis Irrigation 10140 Grand Forest Lane Woodbury, MN 55129 Attention: Rick Ellis Or emailed: lrellis4@gmail.com 15. INDEPENDENT CONTRACTOR STATUS. All services provided by Contractor, its officers, agents and employees pursuant to this Agreement shall be provided as employees of Contractor or as independent contractors of Contractor and not as employees of the City for any purpose. 16. GENERAL PROVISIONS. a. Assignment. This Agreement is not assignable without the mutual written agreement of the parties. b. Waiver. A waiver by either City or Contractor of any breach of this Agreement shall be in writing. Such a waiver shall not affect the waiving party’s rights with respect to any other or further breach. c. Nondiscrimination. Contractor agrees that in the hiring of employees to perform Services under this Agreement, Contractor shall not discriminate against any person by reason of any characteristic protected by state or federal law. City of Cottage Grove – Agreement for Contractor Services Page 6 of 8 d. Governing Law. This Agreement shall be construed in accordance with the laws of the State of Minnesota and any action must be venued in Washington County District Court. e. Amendments. Any modification or amendment to this Agreement shall require a written agreement signed by both parties. f. Severability. If any term of this Agreement is found to be void or invalid, such invalidity shall not affect the remaining terms of this Agreement, which shall continue in full force and effect. g. Data Practices Compliance. All data collected by the City pursuant to this Agreement shall be subject to the Minnesota Government Data Practices Act, Minnesota Statutes, Chapter 13. h. Entire Agreement. This Agreement constitutes the entire agreement of the parties and supersedes all prior communications, understandings and agreements relating to the subject matter hereof, whether oral or written. [The remainder of this page is intentionally left blank] City of Cottage Grove – Agreement for Contractor Services Page 7 of 8 CITY OF COTTAGE GROVE By: _______________________________ Myron A. Bailey, Mayor By: _______________________________ Tamara Anderson, City Clerk City of Cottage Grove – Agreement for Contractor Services Page 8 of 8 CONTRACTOR Signature: _______________________ Date: ___________________________ Name: __________________________ Its: _____________________________ 07/09/2025 Leonard R. Ellis Exhibit A ID Name:Property address:Email:Phone number: 1 Andrew Schlick 8789 Greene Ave S Schlick.andy@gmail.com 352-425-4088 2 Azeb Roba 8698 Joliet Ave S Cottage Grove Azebroba@yahoo.com 6513662310 3 Binh Nguyen 6982 74TH ST S Nguyenandle26@gmail.com 612-876-0498 4 Bradley Bachand 6528 Hadley Circle South Bbachand70@hotmail.com 651-492-7372 5 Brett Ferch 7529 72nd Street Ct S Brettferch@gmail.com 7634127053 6 Canh Chu 9733 78th St S cvc510@yahoo.com 6126855765 7 Casey Tody 6946 Timber Ridge Drive S caseytody@gmail.com 7632869156 8 Chris Olive 6766 Wildflower Dr S chris@chrisolive.net 651-398-7199 9 Christopher Asmus 7160 61st Bay S Cottage Grove, MN 55016 Christopherasmus17@gmail.com 7639990555 10 Dani Matthies 8852 89th St Cir S, Cottage Grove, MN 55016 DanielleRae34@gmail.com 920-585-3427 11 Don Kaste 8853 Jewel Ave S n/a 651-769-3219 12 Douglas James 8678 88th St S d.a.james@live.com 612-805-1816 13 Elliott Krizek 9291 Hillside Trail ekrizek@gmail.com 651-235-1922 14 Fred Johnson 8000 113th Street South fjohnsonat@yahoo.com 651-459-6258 15 Greg Dahling 7324 Meadow Grass Ave S Gdahling@finn-daniels.com 6513033392 16 Gretel Campi 6398 Jasmine Ave S gretel_cp@hotmail.com 8184857475 17 Ian Page HOA 6759 93rd Bay South HOA.summerslanding@gmail.com 6513022837 18 Jason Gavin 6893 Timber Ridge Dr S, Cottage Grove MN 55016 jasongavin@gmail.com 651-270-6760 Landscape Auditor Last Name First Name Company Phone Number Date/Time of Audit Cottage Grove Customer Last Name First Name Address Phone Email Water pressure from PVB or water faucet Make/Model of Original Controller Make/Model of New Smart Controller Make/Model of Backflow Device Make/Model of Rain Sensor Number of Zones Start Time Days of Irrigation City of Cottage Grove Yard Irrigation Audit Exhibit B Zone 1 2 3 4 5 6 Notes Broken lines (Yes, No) Is drip zone combined with heads? (Yes, No) Total length of drip irrigation (ft) Original Zone Run Time (in minutes) Total number of rotary heads in zone Total number of spray heads in zone Head to head coverage (Yes, No) Landscape overgrown or obstruction affecting spray (# heads affected) Recommended Run Time Does zone come on? (Yes/No) Shade % Number of Dry Spots Zone location description (back yd, front yd, right side etc) Valve / Wires properly functioning? (OK/ Not OK) Broken, missing head/nozzle? (# of heads with issue) Total number of rotary nozzle heads in zone Rotary throw (ft) Spray throw (ft) Rotary nozzle throw (ft) Drip spacing between emitters (ft) # of Emitters Low/high head or angled head Heads need arc adjustment (Yes, No) Recommendations General: Zone Specific:Est Price Zone 1 Zone 2 Zone 3 Zone 4 Zone 5 Zone 6 Zone 7 Zone 8 Total Price 1 City Council Action Request 7.X. Meeting Date 7/16/2025 Department Community Development Agenda Category Action Item Title Accessory Structure - Conditional Use Permit and Variances (6255 Hadley Avenue) Staff Recommendation 1) Adopt Resolution 2025-099 approving a conditional use permit to allow a total of 2,340 square feet of accessory structure square footage exceeding the maximum square footage by 340 square feet allowed within the R-2, Residential Estate Zoning District, and a variance to allow for an accessory structure to be located in the front yard at 6255 Hadley Avenue South. 2) Adopt Resolution 2025-100 denying the variance request to allow for the exterior of an accessory structure in a residential district to be constructed of metal at 6255 Hadley Avenue South. Budget Implication N/A Attachments 1. Dressely Accessory Structure CC Memo 2. Dressely Accessory Structure - Resolution Approving CUP & Location Variance 3. Dressely Accessory Structure - Resolution Denying Exterial Materials Variance 4. Dressely Accessory Structure Narrative and Exhibits 5. Dressely Accessory Structure Resolution 1997-101 TO: Honorable Mayor and City Council Jennifer Levitt, City Administrator FROM: Max Erickson, Planner DATE: June 30, 2025 RE: Accessory Structure Conditional Use Permit and Variances (6255 Hadley Avenue) Proposal Al Dressely (Applicant and Property Owner), 6255 Hadley Avenue South, has applied for a con- ditional use permit to exceed the maximum total accessory structure square footage permitted in the R-2, Residential Estate Zoning District, which is 2,000 square feet. The applicant has also applied for a variance to allow for an accessory structure to be placed in front of the principal structure and a variance from the required architectural materials for accessory structures. Site Location Review Schedule Application Received: May 19, 2025 Application Accepted: May 19, 2025 Planning Commission Meeting: June 23, 2025 City Council Meeting: July 16, 2025 60-Day Review Deadline: July 18, 2025 Planning Commission Staff Report Planning Case No. CUP/V2025-015 – Accessory Structure at6255 Hadley Avenue July 9, 2025 Page 2 of 11 Background The subject site is a residential property within the MUSA. The principal structure is serviced by its own sanitary system and well. The residence was constructed in 1994, and a building permit for an addition was granted in 2001. The residence is a wood-frame single-family residential build- ing with a stucco façade. A building permit for a 980 square foot detached accessory garage was obtained in 1997. A variance was approved (Resolution No. 97-101) to construct the existing accessory structure in the front yard due to unique circumstances of the site, which include the location of the septic drain field and topography of the site. The existing accessory structure was constructed following two conditions in which the variance was granted. The first required that a building permit be issued prior to construction and the second required that the exterior of the accessory structure must be consistent with the existing principal structure. The existing acces- sory structure exterior was constructed of stucco that matches the principal structure. The applicant is proposing an accessory structure with dimensions of 34 feet by 40 feet (1,360 square feet) and 12 feet in height. The proposed structure will be utilized as a storage building and located south of the driveway in front of the home and existing accessory garage . The pro- posal to locate the structure in the front yard requires a variance. Additionally, the Applicant is proposing to construct the new structure with a metal material exterior, which is also a variance request. Proposed Structure Site Drawing Submitted by Applicant Planning Commission Staff Report Planning Case No. CUP/V2025-015 – Accessory Structure at6255 Hadley Avenue July 9, 2025 Page 3 of 11 Structure Dimensions Submitted by Applicant Planning Considerations Zoning and Comprehensive Plan The property is currently zoned R-2, Residential Estate. The official zoning map from 1981 iden- tifies this property zoned as R-2, Residential Estate. The site is currently guided as Low Density Residential on the 2040 Comprehensive Plan Land Use Map allowing for potential redevelopment of the area. Future Land Use Planning Commission Staff Report Planning Case No. CUP/V2025-015 – Accessory Structure at6255 Hadley Avenue July 9, 2025 Page 4 of 11 Current Zoning Conditional Use Permit City Code Title 11-5-5 C allows for two accessory structures up to a combined 2,000 square feet without a conditional use permit. As the combined square footage of both proposed (1,360 square foot) and existing (980 square foot) accessory structures exceeds this maximum by 360 square feet (2,340 square feet total), this proposal requires a conditional use permit as outlined by City Code Title 11-5-5) with additional performance standards required to be met listed in City Code Title 11-3-5F(1): a) There is adequate setback, screening, or topography changes that buffer the proposed structure from adjacent public roadways or adjacent properties. - Natural screening exists onsite and minimal removal of vegetation is proposed to the road and to the nearest neighboring property. The proposed building site is roughly 140 feet from the public right-of-way and dense vegetation is established between. b) The proposed building height or building square footage does not exceed the ordinance criteria by more than twenty percent (20%) within the metropolitan urban service area (MUSA) and forty percent (40%) outside the MUSA. - This property is within the MUSA and the percentage threshold for increasing square footage is 400 square feet. This proposal will only exceed the standard by 340 square feet. c) Setback distances are increased five feet (5') for each one foot (1') of height or one hundred (100) square feet of size increase or fraction thereof. - The applicant has proposed to build the structure 35 feet from the neighboring property line. The setback requirement for accessory structures in the R-2 district is 20 feet and an additional 15 feet is required, which this proposal meets. The permit shall be approved solely for the proposed use of a particular site, not for a particular person or firm. When granting a Conditional Use Permit, the City may impose conditions as it Planning Commission Staff Report Planning Case No. CUP/V2025-015 – Accessory Structure at6255 Hadley Avenue July 9, 2025 Page 5 of 11 deems necessary to serve and protect the health, safety, convenience, and general welfare of the community. When evaluating any proposed conditional use permit, the Planning Commission shall consider the following findings: 1. Compliance with and effect upon the Comprehensive Plan, including public facilities and capital improvement plans. 2. The establishment, maintenance or operation of the conditional use will promote and en - hance the general public welfare and will not be detrimental to or endanger the public health, safety, morals or comfort. 3. The conditional use will not be injurious to the use and enjoyment of other property in the immediate vicinity for the purposes already permitted, nor substantially diminish and impair property values within the neighborhood. 4. The establishment of the conditional use will not impede the normal and orderly develop - ment and improvement of surrounding property for uses permitted in the district. 5. Adequate public facilities and services are available or can be reasonably provided to accommodate the use which is proposed. 6. The conditional use shall, in all other respects, conform to the applicable regulations of the district in which it is located. Site Access The site currently has one access off Hadley Avenue. The existing access is planned to remain as the entry to the site, and the proposed structure will have access from the existing driveway. There are no concerns with the proposed use and the existing access off Hadley Avenue, and no additional access to the public street is proposed. Existing and Proposed Site Access Planning Commission Staff Report Planning Case No. CUP/V2025-015 – Accessory Structure at6255 Hadley Avenue July 9, 2025 Page 6 of 11 Tree Preservation The proposed project will involve the removal of three trees. Under City Code Title 11-3-13E, developed single-family residential lots that are not in an actively developing subdivision may remove trees without mitigation. View of the Road (West) Three Trees to be Removed Variance Requirements With all variance requests, the Planning Commission and City Council must look to the zoning ordinance for guidance and direction. City Code Title 11-2-5: Variances states the following: A. Purpose. The purpose of the variance is to allow variation from the strict application of the terms of this Title where, by reason of the exceptional physical characteristics of the property, the literal enforcement of the requirements of this Title would cause practical difficulties for the landowner. F. Findings. A variance may be granted only when all of the following conditions are found: 1. The variance is in harmony with the general purposes and intent of this Title. 2. The variance is consistent with the Comprehensive Plan. Planning Commission Staff Report Planning Case No. CUP/V2025-015 – Accessory Structure at6255 Hadley Avenue July 9, 2025 Page 7 of 11 3. The applicant for the variance establishes that there are practical difficulties in complying with this Title. “Practical difficulties,” as used in connection with the granting of a variance, means that all of the following must be found to apply: a. The property owner proposes to use the land in a reasonable manner for a use permitted in the zone where the land is located, but the proposal is not permitted by other official controls. b. The plight of the landowner is due to circumstances unique to the property and that are not created by the landowner; and c. The variance, if granted, will not alter the essential character of the neighborhood. 4. Economic considerations alone do not constitute practical difficulties. Variance – Yard Placement The applicant has submitted a variance request for an accessory structure to be constructed in the front yard of the property. City Code Title 11-3-5D requires that accessory structures are con- structed behind the principal structure. The applicant has submitted this request with an explanation of why the project faces unique circumstances/practical difficulty which prevents the structure from being placed behind the principal structure. The sanitary system is located due south of the principal structure and would prevent any vehicle access through the southern part of the lot. The site includes difficult topography along the north portion of the home and an existing pool makes placement of a struc - ture a challenge while also maintaining proper setbacks to the side and rear lot lines. Sanitary System Location Planning Commission Staff Report Planning Case No. CUP/V2025-015 – Accessory Structure at6255 Hadley Avenue July 9, 2025 Page 8 of 11 Contour of the Site Findings The findings of fact for a favorable recommendation that were considered during the review are identified as follows: A. The variance is in harmony with the general purposes and intent of the Zoning Code to protect the health, safety, morals, comfort, convenience , and general welfare of the public. B. The variance is consistent with the Comprehensive Plan. a. The 2040 Comprehensive Plan identifies this parcel for Low Density Residential use. Additional accessory structures are permitted within the R-3 Zoning District as a condi- tional use. C. A unique site condition that provides a challenge for construction behind the principal structure. a. The location of the subsurface sewer treatment system prevents a southern access behind the principal structure to an accessory structure. Sanitary systems require opti- mal soil types onsite, and the current system was placed during initial construction to provide optimal performance and efficiency. D. Topography of the site along the northern property line makes construction along the northeast property boundary a challenge to construct a building while also avoiding the existing pool/landscaping. E. The variance would not alter the essential character of the neighborhood as accessory struc- tures are permitted in residential districts, and the proposed building site has adequate natural screening from the neighboring property and the public road. F. The building location has been proposed to minimize the impact to the residential neighbor- hood by constructing it within a wooded portion of the property. G. The proposed building and dimensions are permitted as a conditional use. H. The variance requested is not solely based on economic considerations. Planning Commission Staff Report Planning Case No. CUP/V2025-015 – Accessory Structure at6255 Hadley Avenue July 9, 2025 Page 9 of 11 Variance – Architectural Materials The applicant has submitted a second variance request for use of exterior architectural materials that do not align with the city’s code standards. Per City Code Title 11-3-5B, the exterior finish of accessory structures and garages over 200 square feet in residential districts must be made of split face block, vinyl lap, or cement board materials that are complementary to the color palette of the principal structure. Metal exterior finishes per the City’s Zoning Code are permitted only in agricultural districts. The current city code standards for accessory structure exterior finishes were adopted in 2012 (Ordinance No. 903). This zoning amendment formed a clear framework and list of acceptable exterior materials for each zoning district. During discussion as part of the zoning amendment review and approval process in 2012, these standards were planned to be implemented in antic- ipation for denser future redevelopment. This discussion has remained consistent for this property as this parcel and those surrounding it are guided as Low Density Residential in the 2040 Com- prehensive Plan. Prior to 2012, the material requirement for R-2 in Title 11 of the Zoning Code required accessory structures to be “The same design, material and color pallet of the principal structure.” The existing accessory structure was constructed prior to this zoning amendment. However, the materials were required to be consistent with the princip al structure; therefore, stucco was used as the exterior material on the accessory structure. Example of Proposed Structure and Material Submitted by Applicant The applicant has provided an explanation of why they believe it would meet variance standards: 1. The applicant indicates that their property was zoned R -1, which allowed metal for exterior material in the previous iteration of the zoning code. 2. The applicant has indicated that constructing the desired building out of materials other than metal would cost a significant amount more and would maintain the longevity from the elements and required maintenance. Planning Commission Staff Report Planning Case No. CUP/V2025-015 – Accessory Structure at6255 Hadley Avenue July 9, 2025 Page 10 of 11 3. The applicant has also indicated that buildings within the area have been constructed nearby with metal exteriors in residential districts. Findings The findings of fact for a recommendation of denial that were considered during the review are as follows: A. The variance is not in harmony with the general purposes and intent of the Zoning Code to protect the health, safety, morals, comfort, convenience, and general welfare of the public. B. The variance is not consistent with the Comprehensive Plan. The 2040 Comprehensive Plan identifies this parcel for R-3 single family residential use. Additional accessory struc- tures are allowed as a conditional use in the R-3 zone; however, required exterior materials for accessory structures in R-3 districts do not allow for metal. C. Accessory structures over 200 square feet in residential districts must be constructed with exterior materials listed per City Code Title 11-3-5B, which include wood, split face block, vinyl lap, or cement board materials that are complementary to the color palette of the principal structure. The code does not allow for metal as an acceptable exterior material in all residential districts. This standard has been implemented since the zoning ordinance was enacted in 2012. D. A zoning map from 1981 demonstrates that this property has not changed its designated zoning of R-2 since 1981. E. Nonconforming uses, land structures, or buildings in the same district or other districts may not be considered grounds for issuance of a variance. F. The plight of the landowner is not due to circumstances unique to the property . Economic considerations alone do not constitute practical difficulties. G. A previous variance must not be considered to have set a precedent for the granting of further variances. Each case must be considered on its own merits Public Hearing Notices The public hearing notice for the June 23, 2025, Planning Commission meeting was published in the Saint Paul Pioneer Press and mailed to 36 property owners within 500 feet of the proposed project on June 11, 2025. Planning Commission Meeting At their June 23 meeting, the Planning Commission reviewed this request and held a public hearing. The Commission requested clarification on the following: • The Commission inquired if there are any alteratives to the exterior finish materal. o The Applicant expressed that using a compliant material would cost three times more than the proposed metal material. Planning Commission Staff Report Planning Case No. CUP/V2025-015 – Accessory Structure at6255 Hadley Avenue July 9, 2025 Page 11 of 11 •Are there any other properrties that you are aware of that have buildings with a metal exterior finish within the community? o Staff indicated there are likley exisitng buidlings with metal exteriors throughout the community; however, each was likely reviewed under unique circumstances and/or under previous zoning ordinance standards. •What was the purpose of the code amendment in 2012 to define permitted exterior materials in residnetial districts? o The 2012 code updates clarified permitted exterior materials for accessory structures. The previous code simply stated the materials ‘shall be consistant with the principle structure.’ The intent of the amendment was to align permitted exterior materials for principal structures within residntial districts with permitted exterior materials for accessory structures. The Planning Commission unanimously (7-to-0) voted to recommend the approval of the CUP for an accessory structure to exceed the maximum square footage allowed for accessory structures in an R-2 zoning district, and the varinace to allow for an accessory structrue to be constructed within the front yard. The Planning Commission unanimously (7-to-0) voted to recommend denial of a variance to allow for the exterior of an accessory structure in a residential district to be constructed of metal. Recommendation That the City Council take the following actions: 1.Adopt Resolution 2025-099 approving a conditional use permit to allow a total of 2,340 square feet of accessory structure square footage exceeding the maximum square footage by 340 square feet allowed within the R-2, Residential Estate Zoning District, and a variance to allow for an accessory structure to be located in the front yard at 6255 Hadley Avenue South. 2.Adopt Resolution 2025-100, denying the variance request to allow for the exterior of an accessory structure in a residential district to be constructed of metal at 6255 Hadley Avenue South. CITY OF COTTAGE GROVE, MINNESOTA CITY COUNCIL RESOLUTION 2025-099 A RESOLUTION APPROVING A CONDITIONAL USE PERMIT TO ALLOW FOR THE TOTAL ACCESSORY STRUCTURE SQUARE FEET TO EXCEED THE MAXIMUM SQUARE FEET ALLOWED WITHIN THE R-2, RESIDNTIAL ESTATE ZONING DISTRICT AND A VARIANCE ALLOWING FOR AN ACCESSORY STRUCTURE TO BE LOCATED IN THE FRONT YARD AT 6255 HADLEY AVENUE SOUTH WHEREAS, Al Dressely, applicant and property owner, applied for a Conditional Use Permit (CUP) to allow for the total accessory structure square feet to exceed the maximum allowable square footage by 340 square feet in the R-2, Residential Estate Zoning District, and a Variance to allow for an accessory structure to be located in the front yard at property legally described below: That part of the Southwest Quarter of the Northwest Quarter of Section 5, Township 27, Range 21, Washington County, Minnesota, described as follows: Commencing at the southwest corner of said Southwest Quarter; thence northerly, along the west line of said Southwest Quarter, a distance of 1037.00 feet to the point of beginning of the land to be described; thence easterly, parallel with the south line o f said Southwest Quarter, a distance of 660.00 feet; thence northerly, parallel with the west line of said Southwest Quarter, to the norther line of said Southwest Quarter, thence westerly, along said north line, to the northwest corner of said Southwest Quarter; thence southerly, along the west line of said Southwest Quarter, to the point of beginning. Subject to that portion taken for Hadley Avenue. Containing 4.3 acres more or less. Commonly known as 6255 Hadley Ave South Cottage Grove, Washington County, State of Minnesota. WHEREAS, public hearing notices were mailed to property owners within 500 feet of the property and a public hearing notice was published in the St. Paul Pioneer Press; and WHEREAS, a planning staff report, which detailed specific information on the property and the application request, was prepared and presented; and WHEREAS, the public hearing was open for public testimony and testimony from the appli - cant and the public was received and entered into the public record; and WHEREAS, the Planning Commission unanimously (7-to-0) voted to recommend approval of a conditional use permit to allow for the total accessory structure square feet to be 2,340 square feet on a residnetial parcel, exceeding the maximum square footage (2,000 square feet) allowed for accessory structures within the R-2, Residential Estate Zoning District, and a variance allowing for an accessory structrue (1,360 square feet) to be constructed within the front yard at 6255 Hadley Avenue South at their June 23, 2025, meeting. NOW, THEREFORE BE IT RESOLVED, the City Council of the City of Cottage Grove, Washington County, Minnesota, hereby approves a conditional use permit to allow a total of 2,340 square feet of accessory structure square footage exceeding the maximum square footage by 340 City of Cottage Grove, Minnesota City Council Resolution 2025-099 Page 2 of 3 square feet allowed within the R-2, Residential Estate Zoning District, and a variance to allow for an accessory structure to be located within the front yard on the parcel legally described above. BE IT FURTHER RESOLVED, granting the variance to allow for an accessory structure to be constructed in the front yard at 6255 Hadley Avenue is based on the following findings of fact: A. The variance is in harmony with the general purposes and intent of the Zoning Code to protect the health, safety, morals, comfort, convenience and general welfare of the public. B. The variance is consistent with the Comprehensive Plan. a. The 2040 Comprehensive Plan identifies this parcel for Low Density Residential use. Additional accessory structures are permitted within the R-3 Zoning District as a conditional use. C. A unique site condition that provides a challenge for construction behind the principal structure. a. The location of the subsurface sewer treatment system prevents southern access behind the principal structure to an accessory structure. Sanitary systems require optimal soil types onsite, and the current system was placed during initial construc - tion to provide optimal performance and efficiency. D. Topography of the site along the northern property line makes construction along the northeast property boundary a challenge to construct a building while also avoiding the existing pool/landscaping. E. The variance would not alter the essential character of the neighborhood as accessory structures are permitted in residential districts, and the proposed building site has ade - quate natural screening from the neighboring property and the public road. F. The building location has been proposed to minimize the impact to the residential neigh- borhood by constructing it within a wooded portion of the property. G. The proposed building and dimensions are permitted as a conditional use. H. The variance requested is not solely based on economic considerations. BE IT FURTHER RESOLVED, approval of the conditional use permit and variance are subject to the conditions below: 1. The Project shall be completed in accordance with the plans submitted as amended by the conditions of approval. Any significant changes to the plans, as determined by planning staff, shall require review and approval by the Planning Commission and City Council. City of Cottage Grove, Minnesota City Council Resolution 2025-099 Page 3 of 3 2. All applicable permits (i.e., building, electrical, grading) must be completed, submit- ted, and approved by the City prior to the commencement of any construction activities. 3. The construction and any future expansion of this structure shall meet setback re- quirements established in City Code Title 11-3-5 unless otherwise stated in future City Code. 4. The maximum building height of the new detached accessory structure shall not exceed 20 feet. 5. The maximum square footage for accessory structures on site shall not exceed more than 2,340 square feet. The existing swimming pool and one accessory struc- ture up to 200 square feet do not count towards this total. 6. The color scheme of the structure and any future alterations shall complement the principal structure unless otherwise stated in the current or future City Code. 7. The structure will be constructed of materials consistent with requirements for resi - dential districts in City Code Title 11-3-5B. 8. The accessory structure may not be utilized as habitable space. 9. Adequate screening from neighboring properties and the public street must be maintained. Passed this 16th day of July 2025. Myron Bailey, Mayor Attest: Tamara Anderson, City Clerk CITY OF COTTAGE GROVE, MINNESOTA CITY COUNCIL RESOLUTION 2025-100 A RESOLUTION DENYING A VARIANCE TO ALLOW FOR THE EXTERIOR OF AN ACCESSORY STRUCTURE TO BE CONSTRUCTED OF METAL IN A RESIDENTIAL DISTRICT AT 6255 HADLEY AVENUE SOUTH WHEREAS, Al Dressely, applicant and property owner, applied for a variance to allow an accessory structure to be constructed of metal in a residential district on property legally described below: That part of the Southwest Quarter of the Northwest Quarter of Section 5, Township 27, Range 21, Washington County, Minnesota, described as follows: Commencing at the southwest corner of said Southwest Quarter; thence northerly, along the west line of said Southwest Quarter, a distance of 1037.00 feet to the point of beginning of the land to be described; thence easterly, parallel with the south line o f said Southwest Quarter, a distance of 660.00 feet; thence northerly, parallel with the west line of said Southwest Quarter, to the norther line of said Southwest Quarter, thence westerly, along said north line, to the northwest corner of said Southwest Quarter; thence southerly, along the west line of said Southwest Quarter, to the point of beginning. Subject to that portion taken for Hadley Avenue. Containing 4.3 acres more or less. Commonly known as 6255 Hadley Ave South Cottage Grove, Washington County, State of Minnesota. WHEREAS, public hearing notices were mailed to property owners within 500 feet of the property and a public hearing notice was published in the St. Paul Pioneer Press; and WHEREAS, a planning staff report, which detailed specific information on the property and the application request, was prepared and presented; and WHEREAS, the public hearing was open for public testimony and testimony from the ap pli- cant and the public was received and entered into the public record; and WHEREAS, the Planning Commission unanimously (7-to-0) voted to recommend denial of the variance request to use metal as an exterior finish material on an accessory structure in a residential district at 6255 Hadley Avenue South at their June 23, 2025, meeting. NOW, THEREFORE BE IT RESOLVED, the City Council of the City of Cottage Grove, Washington County, Minnesota, hereby denies the variance request to allow for the exterior of an accessory structure in a residential district to be constructed of metal on the parcel legally described above. BE IT FURTHER RESOLVED, denying the variance to allow for the exterior material of an accessory structure in a residential district to be metal is based on the following findings of fact: City of Cottage Grove, Minnesota City Council Resolution 2025-100 Page 2 of 2 A. The variance is not in harmony with the general purposes and intent of the Zoning Code to protect the health, safety, morals, comfort, convenience, and general welfare of the public. B. The variance is not consistent with the Comprehensive Plan. The 2040 Comprehensive Plan identifies this parcel for R-3, Single Family Residential. Additional accessory struc- ture square footage is permitted as a conditional use in the R-3, Single Family Zoning District; however, metal is not a permitted exterior material for an accessory structure within R-3, Single Family Residential Zoning districts. C. Accessory structures over 200 square feet in residential districts must be constructed with exterior materials listed per City Code Title 11-3-5B, which include wood, split face block, vinyl lap, or cement board materials that are complementary to the colo r palette of the principal structure. The code does not allow for metal as an acceptable exterior material in all residential districts. This standard has been implemented since the zoning ordinance was enacted in 2012. D. Nonconforming uses, land structures, or buildings in the same district or other districts may not be considered grounds for issuance of a variance. E. The plight of the landowner is not due to circumstances unique to the property. Economic considerations alone do not constitute practical difficulties. F. A previous variance must not be considered to have set a precedent for the granting of further variances. Each case must be considered on its own merits. Passed this 16th day of July 2025. Myron Bailey, Mayor Attest: Tamara Anderson, City Clerk RESOLUTION NO. 97-101 A RESOLUTION GRANTING A VARIANCE TO SECTION 28-21( C)(3) OF THE COTTAGE GROVE ZONING ORDINANCE FOR PUROSES OF ALLOWING A DETACHED ACCESSORY STRUCTURE IN FRONT OF THE PRINCIPAL STRUCTURE FOR PROPERTY AT 6255 HADLEY AVENUE SOUTH WHEREAS, Allen and Devon Dressely have filed for a variance to Section 28-21( C)(3) of the Cottage Grove Zoning Ordinance which pertains to the placement of a detached accessory structure in front of the Principal structure for property legally described as: That part of the Southwest Quarter of the Northwest Quarter of Section 5, Township 27, Range 21, Washington County, Minnesota, described as follows: Commencing at the southwest corner of said Southwest Quarter; thence northerly, along the west line of said Southwest Quarter, a distance of 1037.00 feet to the point of beginning of the land to be described; thence easterly, parallel with the south line of said Southwest Quarter, a distance of 660.00 feet; thence northerly, parallel with the west line of said Southwest Quarter, to the north line of said Southwest Quarter; thence westerly, along said north line, to the northwest corner of said Southwest Quarter; thence southerly, along the west line of said Southwest Quarter, to the point of beginning. Subject to that portion taken for Hadley Avenue. Containing 4.3 Acres more or less. Commonly known as, 6255 Hadley Avenue South, Cottage Grove, Washington County, Minnesota. WHEREAS, the applicant proposes to construct a detached accessory structure that will be located in front of the principal structure. The property is 660 feet deep and the home is located approximately 448 feet from the front property boundary line.; and WHEREAS, the applicant is requesting the detached accessory structure have a front yard setback approximately 412 feet from the Hadley Avenue pavement whereby the Principal structure is approximately 448 feet; and Resolution No. 97-101 Page 2 WHEREAS, public hearing notices were mailed to property owners within 500 feet of Dressely's property and a public hearing notice was published in the South Washington County Bulletin; and WHEREAS, the Planning Commission held public hearing on June 23, 1997; and WHEREAS, the public hearing was open for public testimony and no one from the public spoke; and WHEREAS, the Planning Commission unanimously approved (7-0 vote) the application. NOW, THEREFORE, BE IT RESOLVED, the City Council of the City of Cottage Grove, Washington County, Minnesota hereby grants a variance to Section 28-21( C)(3) of the Cottage Grove Zoning Ordinance to allow a detached accessory structure in front of the Principal structure, based upon the following findings of fact: 1. A hardship unique to this property is the location of the septic/drainfield system on the south side of the dwelling and the terrain on that side of the property has a moderate downward slope to the southeast. 2. Placement of an accessory building complying with the City's setback requirements will require the garage to be placed on the north side of the house, whereby the driveway will have to be extended across the front of the house requiring more trees to be removed. 3. The front yard setback for the existing dwelling is approximately 448 feet from Hadley Avenue's east roadway edge. This excessive front yard setback was chosen by the owner simply to take advantage of the natural clearing on the property, thus minimizing the number of trees that would have to be removed for the construction of their home. The proposed garage setback meets the spirit and intent of the ordinance by reducing public views to accessory structures. Granting of the variance is subject to: 1. The applicant must complete a building permit application for the accessory building and the City must issue the permit before any construction could begin. 2. The exterior of the accessory structure must be consistent with the existing principal structure. CJ Resolution No. 97-101 Page 3 Passed this 16"' day of July, 1997. John D. Denzer, May U Attest: - - r. , i l c / y': Caron M. Stransky, City` rk a 946193 4 _ _ r.J f;?• !,, =;[? it,.':3;1 ,. . ,,.. ,,.-i..* r S 2 3 j f1 7 l.t :, -9461_.. - a. 'U k y1So fY Fy Z .... " 1 5 i f } ... Tyk . ' ... l I y .., ;_' 7. ..:. P tt'..- STATE OF MINNESOTA COUNTY OF WASHINGTON CITY OF COTTAGE GROVE 0 4 v`T I, the undersi ned, bein the dul ualified and actin Cit Clerk of the g 9 Yq 9 Y City of Cottage Grove, Minnesota, DO HEREBY CERTIFY, that I have carefully compared the attached copies of Resolution No. 97-101 of the City of Cottage Grove with the original on file in my office and the same is a full, true and complete transcript therefrom. WITNESS, my had as such City Clerk and the corporate seal of the City this 22nd day of August, 1997. Qtr C.,,r./ Caron Stransky City Clerk v.. -, n rW ' TI S I L , r, , , oo,tA:,,,..• - a r,;y t' 1 City Council Action Request 8.A. Meeting Date 7/16/2025 Department Finance Agenda Category Action Item Title Approve Disbursements Staff Recommendation Approve disbursements from 06-13-2025 through 07-10-2025 in the amount of $8,839,571.42. Budget Implication N/A Attachments 1. Expense Approval Report 7-16-25 Council Meeting 2. Payroll Check Register 07-16-25 Council Meeting 3. UB Check Register 07.16.25 Council Meeting 1 City Council Action Request 13.A. Meeting Date 7/16/2025 Department Public Safety Agenda Category Presentation Title Emergency Medical Services Update Staff Recommendation Receive a presentation on EMS and provide feedback and direction. Budget Implication N/A Attachments 1. EMS Council Workshop July 16 2025 To:Honorable Mayor and City Council Jennifer Levitt, City Administrator From:Peter J Koerner, Director of Public Safety Jon Pritchard, Deputy Director/Fire Chief Date:July 10, 2025 Subject: COUNCIL WORKSHOP – EMERGENCY MEDICAL SERVICES UPDATE INTRODUCTION Cottage Grove Public Safety – Fire/EMS division will provide an outline of our Emergency Medical Services (EMS), Primary Service Area (PSA) and discuss cost recovery scenarios related to the other communities we serve. We have started conversations with those communities. We will discuss the status of the EMS fund including some historical data and challenges with Medicare/Medicare reimbursement issues. We will give some context of other communities and their challenges (our situation is not unique). Moving forward, there are possibilities of fire/EMS districts. We will also use this opportunity to update the council on staffing, cadet program, Fire Marshal position and an update on the Standards of Cover Study that is currently underway that includes public engagement that will be part of the study. RECOMMENDATION Receive a presentation on EMS and provide feedback and direction.