All right. Good evening. This is the December 3rd, 2025 Cottage Grove City Council meeting, which I am calling to order. Um, I will mention that this meeting is being recorded by True Lens uh community media. You can view the city's meetings live and replay them on cable channel 799. And meetings are also streamed live and archived on the city of Cottage Grove's YouTube channel. And so, uh, with that, the next item we're going to do is the pledge of allegiance. So, if you'd please rise. I pledge allegiance to the flag of the United States of America and to the republic for which it stands, one nation under God, indivisible, with liberty [clears throat] and justice for all. >> All right. Will the uh clerk please do the role? >> Council member Clson >> here. >> Council member Olsen >> here. >> Council member Theiti >> here. >> Council member Garza. Mayor Bailey >> here. Uh, next on our agenda number four is open forum. This is the opportunity for uh those that want to speak on something that's not on tonight's agenda is welcome to do so. I will mention that we did have a signup sheet out in the entryway and we do have somebody signed up here. Uh, and we do ask I'll call your name on the sheet first and then just double check to make sure no one got in and didn't sign up which is cool. Um, and we just ask that you uh keep it within 3 minutes. So, uh, the first person, uh, the only person on my list right now is Peggy Nelson. And if you just want to state your name and address for the record, and we'll go from there. Welcome. >> Thank you. >> My name is Peggy Morerti Nelson and I live at 7490 Hinton Park Avenue, South K. and I am here to talk about the amendments that I would like to inform you about. They are on this sheet right here that I have in my hand and it says here, "I do not wish to speak with you, answer your questions, or sign or hand you any documents based on my fifth amendment rights under the United States Constitution. I do not give you permission to enter my home based on my Fourth Amendment rights under the United States Constitution unless you have a warrant to enter signed by a judge or a magistrate with my name on it that you slide under the door. I do not give you permission to search any of my belongings based on my fourth amendment rights. I choose to exercise these are my amendment rights and this card is given to people by legal aid right here in Minnesota. So my critical question to the Cottage Grove City Council and the Police Department is um will the Cottage Grove City and Police Department going to uphold the constitution and the laws for our citizens? Um we had an incident that happened in St. Paul on November the 25th and it was um there was supposed to be a warrant but yet nothing was produced for being a warrant. And so there were people who came out in rapid response and there was about 300 people within the neighborhood that came out to they were nonviolent. None of them had uh any, you know, violent tendencies. They didn't have rocks, sticks, nothing. They were simply chanting their first amendment right [clears throat] was the right for freedom of speech. And yet the St. Paul Police Department took it upon themselves to fire them with lethal rubber bullets and um also tear gas and spray them with pepper spray. These are all harmful things to citizens and um they didn't have a warrant as they so stated that they did. I would just like to say that while I'm standing here asking you to abide by the constitution here in Cottage Grove, please consider that we the citizens would like you to do that. >> Thank you. Okay. Was there anybody else that wants to speak on something that's not on tonight's agenda? All right. Thank you. I'll go ahead and close the uh open form part of the meeting. We'll move to the number five, which is adoption of the agenda. >> Move the agenda. >> We have a mo motion by council member Olsen, seconded by council member Theiti. Any discussion? Seeing none, all those in favor signify by saying I. >> I opposed. >> Motion carries. Next is six presentations. We have one this evening which is pretty awesome. It's called the Patriot Awards presentation. And I'm going to first invite Everett Doolittle uh which is the assistant um budsman [laughter] director >> budsman. >> Umbudsman. Did I say it right? >> That's the right word. >> Yep. Uh for the guard uh gardener reserve and obviously thank you for your service and uh then after him I believe our deputy uh fire chief Nick Aragoni is going to be speaking about this. >> Why don't you chief and why don't you come up over here? Let me explain what this is about. Uh, ESGR is employer support of Garden Reserve. If you look back, many of you, we had a we had a a lottery. We had a draft and then after the Vietnam War, which I served in the Vietnam War, uh, we changed to call the volunteer army. But with that, they knew there's going to be a really big problem because it's picture a three-legged stool. We got the service member, we got the family, and we got the employer. And without all three of them working together, this don't work. And so ESGR was created as a branch or part of the Department of Defense with its role, multi- roles, but one of the main ones is I'm an onbudsman. I'm a mediator. Uh, and I'm I'm an assistant onbudsman director for Minnesota. And our role is when the service member comes back typically deployed or not and he has a problem as employer he gets a hold of uh national and national assigns one of us to contact him and we try to mediate it and the thing is I don't represent the service member I want to be really clear and I don't represent the employer I represent USA uniform service employment remployment right act and [snorts] I try to work together to mediate this uh within the law and if I can't mediated, there's another level it can go to who has true investigative subpoena power and everything else. And a lot of times even before that, if a city or county or a private employer or or service member has a problem, they can contact ESGR and we will just try to walk them through it informally. Well, then the fun part of my job is this today. This is called a patriot award. There's a series of awards where a service member can put in his supervisor. Now, there's above that for the for the organization, but for a supervisor, he believes it goes above and beyond in the support and help in him to serve his country. And that's what this is today. uh patriot award is is from is from the uh the national guard but it's actually from the department of defense and it's an award recognizing an individual a supervisor that goes beyond but first I want to clarify something first I I spent my good part of my life as a professor you can't shut me up I'm sorry all right I want to clarify I was here many many years ago and did a patient award and it was for the police department and when I did uh they brought a whole bunch of different officers that are all serving in the guard and it was one of my very first awards and I was supposed to recognize all of them and I forgot and I forgot so I'm going to apologize you know for something from many many years ago because uh Cottage Grove has a lot of people serving and uh they're serving and they're getting unbelievable support uh you know so I I know that from my contact uh so I want to thank all of you for that support but right what I want to do now is this award is for you to give. Now, I'm going to put you up. You need to do a speech and [laughter] then don't laugh. You're next. >> So, thank you uh for having us tonight. I think this is an incredible opportunity to recognize my fire chief, John Pritchard. Um simply put, he goes above and beyond um for me um and I know he would do that if we have other service members on the fire department as well um to to take care of me as best he can when I'm gone. So, uh, my role in the Army National Guard requires a lot of time away from home. Uh, with that comes stress. Uh, and one thing I I don't have to worry about, um, when I'm gone for military is, um, work. And we, uh, most of us in this room are probably not very good at quote unquote turning it off, um, when we need to. And that includes myself. Um, so John uh, while he hasn't served himself, he's the son of a Vietnam veteran. Um, and he just goes above and beyond to make sure that I'm taken care of. Um, that my wife Katie is taken care of while I'm gone. Um, he allows me to flex schedules and really just takes the the stress off of me. So, um, you know, this this award is is long overdue for him. But, um, truth be told, this this award could have gone to any of my supervisors throughout my time in the city. And I think um that's a testament to not only the culture that we have in the fire department that will take care of each other um but also the city as a whole. So um before I present the award, I'll let Chief Pritchard say a few uh things and then we'll go to the front. [clears throat] >> So the only person that might out talk me is a former professor. So I'll try to be brief. But um I think this award represents the support the city gives um to our uh veterans and to those folks that are actively serving. And really to Nick um he has a very high demand military position and I I I think he really undersold it but it's so important. But I'm very proud of being a good supporter of these folks. And like I said, I have to answer to probably the worst person if I ever treated our service people badly, and that would be my father as a Vietnam vet. And he would never let me live that down. He'd probably tell me to go back and do the right thing for folks. So, I truly am honored to receive this, not only for myself, but for our fire department and for our city. So, thank you. >> Okay. I want to say a couple of things for a second. I The world has changed. When I got back from Vietnam, I was with 101st Airborne. In fact, I got shot up in Vietnam. And I got back, you weren't treat they were treated very disrespectfully. The world has totally changed. Cities, counties, employers as a whole, this country teaches vets and has more programs supporting them, their family than anything I ever thought. And it's it really it speaks highly uh the changes. And that's what makes it fun. Now, what I'd like to do is bring the up front here. And I'd like to get a a picture because I'd like to get you all in. >> Actually, I'll bring the council down in front. >> Yeah, that would be great. [clears throat] And you will begin to present your so on behalf of myself, Chief Richard, thank you very much. Uh very very deserving of the Patriot Award. Thank you for all your support. [applause] recognize you. >> Thank you. Thank you. Come on in [clears throat] over here. >> Thank you. >> Thank you. Thank you for Congratulations. >> Thank you. >> Well done. Congratulations. >> Great to see you again. [clears throat] >> [laughter] [snorts] [clears throat] >> And thanks again, Everett, for uh all that you've done for the country and what you're doing for our servicemen. Now, >> this is the fun part. [laughter] >> There you go. Thank you. All right. Uh now we'll move on to number seven, which is the consent agenda. Uh council if there's anything that you would like to pull on consent. I >> um council member uh Clawson mentions I. Anybody else? No. >> All right. Seeing nothing else. Um I is regarding an appointment to the parks rec and natural resources commission. >> Thank you mayor. Uh councel just a very quick note as you know I serve on the le liaison on the parks wreck and natural resources uh committee. Um item I today we're going to recognize the appointment of Sam Larson to fill the youth seat. Um Sam is a senior. He's an athlete, plays hockey, and I just think it's so great that we get youth involved on our city committees and and uh get their input. So I um gladly hopefully and wholeheartedly support his his appointment tonight. Thank you. Fantastic. Thank you. All right. Seeing nothing else being pulled on consent this evening, I'll look for a motion in a second. Move consent. >> All right, we have a motion by council member Theiti. Do I have a second? I'll second. Second by council member Clawson. Any further discussion? >> Seeing none, all those in favor signify by saying I. I. >> I. Opposed. >> Motion carries. So if you are here for anything on tonight's consent agenda. All of those items have been approved. Uh we'll move on to number eight, which is approve dispersement. 8A is to pay the bills. >> Move the bills. >> We have a motion by council member Olsson. Do I have a second? I will second. Second by council member Clawson. All those in favor uh signify by saying I >> I opposed. Motion [clears throat] carries. Moving right along here. We're now down to public hearings and we have two this evening. Uh the first one A is the properly t property tax levy payable in 2026 and the adoption of the 2026 budget. And Brenda Melanowski, our finance director, is going to walk us through this long road to get to this point. [laughter] Welcome, >> mayor, members of the council. Uh yes, you are correct. It has been a long road. Um and uh our first uh slide here is to just uh review um what that we started this process back in January with the strategic plan. Um and uh it's never an easy process to uh work on the budget and the property tax levy each year. Uh but my thanks to city council um our department directors uh their teams um as we've combed through um every part of the budget understood where the numbers come from and the impacts um on our property tax levy and onto our taxpayers. So uh thank you to everyone. Um and here we are. So we've been working uh throughout the year uh different parts of the budget and the property tax levy. Uh here we are tonight uh where you will be holding the public hearing uh to get comments um on the budget and then you will be setting that final property tax levy. Um just a reminder um to uh you and to our residents uh these uh property tax bills uh were mailed um by the county uh in November. Um that property tax bill has many components. There's uh different uh taxing jurisdictions uh that are on there. Uh one being the city of Cottage Grove and that is what we are answering uh questions about tonight and that's what we're discussing is that property tax uh levy for the city of Cottage Grove. Um it did indicate um on there uh that tonight would be where public comment would be made uh tonight. Um on that proposed bill uh the median home in Cottage Grove that's valued at $369,200. uh that bill for 2026 based on the proposed levies uh for the city of Cottage Grove and the other taxing jurisdictions is $4,684 for 2026. Uh Cottage Grove uh is 30% of that property tax bill and so that's shown on the pie chart uh in green. Uh the school district is uh just under 48%. uh the county uh just under 19% and those uh Met Council and other small taxing jurisdictions are the remainder um of the tax bill. Uh budget accomplishments uh based on the property tax levy in front of you um and the budget uh that uh is available um on our city website was in our packet. Um there's several things that we've been able to accomplish. Uh we continue to be able to provide those same exceptional level of services to our citizens. So there's no service reductions um whether it is uh police services, fire services, streets, uh public works, uh snow plowing, parks and recreation. So those same level of services to our residents um that they've enjoyed in the past. We're showing that demonstration of capital assets. Uh we uh operate under a 10-year financial management plan. Uh we look at that uh the impact of property taxes in the future. uh when we look at uh future debt that is uh coming onto um our tax roles for pavement management or street projects uh we look at capital replacement uh of our equipment. Um and so we are able to do that with this budget in front of you. Uh we continue to be well positioned to respond to changes in the economy amid economic uncertainty that is occurring uh recently. Um and we continue to be uh that employer of choice. So, as the city of Cottage Grove employer, uh to our employees, uh this budget, uh we're fulfilling uh the obligations that are set out in those contracts uh with those uh different bargaining units um in the city, whether it's our police officers or firefighters. Uh we do have some staffing um in the position, some uh growth in staffing, and I'll outline those uh a little bit later. And then um as we've done pavement management projects, street projects or built the central fire station, uh we've issued debt for those projects. And so just like a mortgage, we have to pay that back each year. And there's a principle and interest payment on that. And so in this budget in front of you, we are paying uh those debt service needs in 2026. And then we're maintaining the fund balance target of the general fund. Uh, a lot of people don't understand we're setting the property tax levy tonight. We're sending it to the county. Uh, but the first time that we will get a check um on this property tax levy is in July. And so the city um operates for six months writing checks, paying uh bills uh before we get cash in the door. And so we have to look uh to verify that we have those reserves on hand. And so we are able to do that with this budget. Uh the property tax levy is uh in front of you on the screen. Uh last year the city portion uh the $25,990 9990,600 is increasing to 29,885,000. Uh the general fund um increase um is just uh under uh 10% of that increase um or from year to year. Um but then I wanted to outline some of the other items on here. Uh the EMS levy we are uh levying for EMS services uh for the first time um in recent history history. The first time that I can remember um cost of EMS services um the reimbursements for Medicare and Medicaid just are not keeping up with the cost of the service. And so for the first time we are doing that. um at our equipment levby. Um we need to replace about $2 million in in equipment per year. When we look at our 10-year financial management plan, we look at all our uh police vehicles, our fire vehicles, um our plow trucks, all those different vehicles uh in our community. We need to replace on average about $2 million per year. And so we're starting to increase that equipment levy to be able to fund those um with our property taxes. our municipal building uh levy we are increasing by $150,000. Uh we did uh or we had uh done a study uh with an outside contractor earlier this year. They looked at uh this building that was built in 2012, our central fire station that was built in 2017, and looked um as these buildings are starting to age, some of those equipment replacement needs, whether it's a a boiler or a water heater, those sorts of equipment or repairing windows, seals, those things. and just looking so that when we get to replacing a roof in uh 15 to 20 years that we have money um so that we're not having to put that entire balance onto the property tax levy. The 150,000 uh for next year will uh address some security concerns um at our front uh desk area. The EDA levy um that we have not been fully funding the operations there and so that's increasing. Um the park capital levy was one thing as we did the fi 10-year financial management plan uh that we had identified that needed to be funded um for those uh park capital or equipment replacement needs in our parks. And then finally our debt levy is increasing. when we had issued pavement management uh bond or 2025 bonds for pavement management and for equipment. Um those that debt levy increase is to fund those principal and interest payments. Uh the HRA levy then is listed next. Uh that's a $5,000 uh increase. The EDA uh did approve that HR levy last night and you are reaffirming it tonight as part of your actions. uh budget highlights. Uh the new positions uh in the budget are listed here. So the 49th officer uh that does have uh is included in the property tax levy. Uh the next three positions uh those are uh funded with revenues in the city. So the building inspector, the engineering technician, uh recreational se seasonal positions, those are offset uh so property tax levy neutral uh but needed um and funded with those revenue sources. uh the three six-month position um for parks uh that will be funded with property taxes. Um and then the deputy director of public works and utilities uh that is being funded um with our utility fund revenue. So not in our property taxes. Um as um employees of other um employers, your employer has been sending you a notice uh in the last week uh talking about the paid family medical leave. uh the city of Cottage Grove um also sent that notice to our employees because we will be um needing to pay for that also. And so the uh included in our budget is that 044% uh that we are required to pay um starting on January 1st and then uh in our union contracts our employees will be pay picking up the second half. So they'll be funding uh 44%. uh commodities and contractual services. Uh we kept that at 2.5% uh to keep the property uh tax levy as low as we could. Um that is despite uh talks of tariffs and uh inflationary things and you know cost of supplies have just gone up but our department um our directors and our teams uh they were able to really uh keep it at that 2.5% uh level. Um so my thanks to them and then we even had some savings uh that were able to do. So, the uh especially here um snow removal savings. Um we had some savings um in the 2025 budget. Um and so uh the public works team brought a proposal forward to you uh to buy equipment this year uh $200,000 to equip the trucks. We got a $100,000 grant. So net effect to the city was h 100,000. But now we're able to put uh $50,000 in savings um into the budget next year. And so that did have a positive uh decrease to our property tax levy. We will be funding $2.37 million of equipment replacement um in 2026 as we look uh what needs to be replaced in the city, whether uh it is um our squads, um some equipment uh at public works, um a garbage truck, those sorts of things that's listed in the budget. Um and those were necessary replacements. um each year, each piece of equipment that needs to be uh replaced. Um we don't just replace it because it's uh at 10 years or 12 years. Uh it has we have to have a justification that those those equipment those pieces of equipment need to be replaced that they can't be, you know, put down the road one more year. Um, we do have a a police uh vehicle um actually out in the lot that's uh up for replacement for 2026 that hasn't been able to be driven uh for a little bit because it is um at that repair it's no longer able to be repaired. And so those those pieces of equipment that we are funding um are necessary. Uh the general fund uh that's our chief operating budget in the city. Um, I wanted to to talk about that because it's it's our largest budget and it uh funds um our police services, our fire services, uh public works, parks and recreation, administration services. And when we send a fire truck uh to a a house um respond to a house, we're not sending them a bill. And so to generate that service for that uh member of our community, uh we need to pay for it. And we pay for it with property taxes. Um so when we look at the general fund, it is no surprise that uh the general fund uh is supported by 76% in property taxes. However, we are a growing community um and so license and permits um for new buildings and commercial uh buildings uh do fund 8% of our budget uh in the general fund. uh charges for services when we rent park buildings or do um some of our recreational services or engineering services uh that generates 6% uh in the general fund. Uh intergovernmental revenue is about 5% whether that is our police aid or fire aid that we receive from the state or if we receive a grant uh to fund a position in the city that is 5% of the general fund. And then lastly, uh our enterprise funds, our water fund, our sewer fund, they send some money, um over to the general fund uh for those services, whether it's payroll services or finance um administration services that we provide um to those funds. And then on the expenditure side, um first I wanted to to point uh that that expenditure number was the same as the revenue number. Uh that's because we've balanced our budget. We're not using fund reserves or any tricks uh to balance this budget. Um and because we're in the people business, we we provide snowplowing services or fire or police. Um 71% of our general fund is personnel. Uh commodities uh 5.22% 22% contractual 22% and then uh budget contingencies so that we can react uh to things that um happen uh during the year that we had not anticipated um is 1%. Or just over one. And then when we look at budgets by department um public safety, we look at this every year um and we I've got the four-year trend and it doesn't change. Public safety is, you know, 48.9% of the budget and that's our police and fire services. Uh public works is 19% so those streets um and snow removal services. Um general government 12% providing services really to the other departments whether it's uh paying employees uh cutting accounts payable checks or doing accounting services or administration services. We support um all those other uh parts of our city. Um parks and recreation just under 12%. And then finally community development at 7.85. 85. Um, the median home, so I had alluded to that before. Uh, our median home uh in 2025 uh was $357,100. Uh, city property taxes paid by that median home $1,282. So, based um on the property tax levy in front of you, uh they would pay uh in 2026 $1,435. Uh they increased uh that median home increased in value by 3.39%. And then um we um operate under that 10-year financial management plan. This is the third year that we are doing a budget uh based on the financial management plan. Um that financial management plan had said that we needed a $110 increase on the median home the first year, $100 the second um and thereafter. And so it's good to see how we are comparing. We would be at $310 um over that three-year period. We're at 309. There was an action that happened last night. However, um at the EDA meeting, there was a descertification of a tis tiff district. And so these property tax statements um that arrived um in the mail in November, uh they will actually decrease uh because of this descertification of this tiff district. When a tiff district descertifies, those taxes that are being captured um for that that development are then put back on the property tax levy. And because of that action that happened last night, um the property taxes will go down. And so on that, what that means is on the median home that uh was going to pay annual taxes in um 2026 of $1,435, they will pay $1,418. So a decrease of about approximately $17. Um what it also did is that um the increase in pro city property taxes uh was about 11.93% before that descertification. That increase in property taxes uh due to that descertification um is now 10.61%. So, a decrease of about 1.3%. Um, and all homes um and businesses will be afforded the same reduction. [sighs] Instead of paying uh the property tax bill, whether you pay it uh once a year or twice a year, instead if you sent a payment to the city of Cottage Grove, um you would send us $118 per month. So, we can compare that to a cable bill or an, you know, Excel bill, those sorts of things. Um, and so if you sent us $118 a month, we would turn around and send about $54 to public safety to pay for police and fire services. $19 to public works to to pay for snow plowing, streets, clearing pathways. Uh, parks and recreation, we get about $12.85 for parks, trails, and those facilities. uh debt service to pay that existing debt would um get $17.93. General government $12. Economic development HR $1.31. Contingency would get $2. And then uh community development uh because they do have that building permit revenue uh coming in uh to fund their department, uh their property tax levy impact is only 6 cents. We also um keep track of um how we compare to other cities. Um we want we don't want to be the the highest uh taxed uh city uh in Washington County um or when we look at growing communities. And so here um on this screen uh is Cottage Grove compared to other cities in Washington County on the median home. Median homes in each community are a different value. And so I've calculated uh city uh taxes uh based on their preliminary levy based on uh their median home and uh in Cottage Grove or Cottage Grove is the third lowest in Washington County when we compare other community to other communities. Uh when we compare ourselves to uh growing cities over 40,000 uh we are the fourth lowest. Uh just Shakape Blaine Maple Grove um are below us. And I just want to remind you too that, you know, the $1,435 that's shown on the screen is really $1,418. Uh property tax levy per capita. Um if we simply take uh property tax levies and divide it by the population as set by Met Council, uh we're very favorable comparing there to the only one uh when we look at other Washington County cities, uh St. Paul Park is below us. Um and uh everybody else um is above us. And then if we look at growing cities over 40,000 uh only Shakapei is below us. Um I just wanted to remind um anybody that's watching, anybody in the audience that the state does have some property tax relief programs. Um and first of all, there is a regular property tax credit refund program. uh household income is uh needing to be less than $139,000$139,330 in 2024. Um and then a special property tax refund program um if property taxes increase more than 12% and $100. Um the $100 can't be because of an improvement. Um and then there's a senior citizen property deferral program uh for income less than 96,000. Uh the website is there on the screen. The phone number is there on the screen. I am always happy uh to talk to residents if they have specific questions. Um I can help them navigate uh those websites and um answer any questions. Um and the other, you know, the last thing I wanted to to note um on these proposed property taxes up in the corner um is the value of 25 versus 26 of each individual home. We talked about that median home and that increase in that value, that market value. Uh that was set uh back in March. So the county assessor sets that for Cottage Grove and they send these statements out um when that comes um in March uh it does list open book meetings. And so if you feel that your property is not valued correctly or if you want to understand more of how your VA uh property is valued, uh you can call there's open book meetings. One of them is held here at the city of Cottage Grove each year. And so that is the time that somebody can uh get more questions answered or ask uh for it to be reviewed [clears throat] that amount that value. Um with [clears throat] that, excuse me. Um I am happy to answer any questions. Um or else your recommendations are on the screen. >> All right. Thank you. Uh thank you Brenda and uh uh thank you for all the work that you and the team have done on putting this budget together all the way and what we're about 30 or so days away from starting the next one. >> Yeah. So we'll start over again. So um council Yeah. Council member Bolson. >> Thanks Brenda. Do you want me to bring down some water for you? >> I know. I'm sorry. >> No. Do you want some? I got mine. >> Okay. All right. Tammy's always good enough to take care of us up here. So um thank you for that. First and foremost, uh, as the mayor said, thank you very much. I know that you and your staff, uh, have put in a ridiculous amount of time over the course of the last, you know, 11 months providing us with all [clears throat] kinds of data and information, etc. For the public at home, I want to mention, could you go back to that first slide you where it shows by month, January, February, March, all that? >> Oh, yes. >> Yeah. Thanks. There. >> There we go. So, um I want to mention for the public at home that um creating a budget and landing on a final budget is really a a stepped process. And it's important to understand that um this is a a joint effort amongst the staff and uh our city council because we're all one team. you know, you're not on team council versus team staff. You're not, you know, we all work together. Um, and the only way we can make good decisions as a council is when we get really good information from our team here in the um city hall building and and trust me, they do a ton. So if you look at all these various meetings, we start with a strategic plan um based on the data that we have at the time and uh usually that number is scary. I'll just leave it at that. It freaks freaks us out. And then what happens is as we go through the rest of the time frame here that you see on your screen, um we start kind of gradually dialing in because we get more data, more information etc. um we have to wait for county evaluations. We have to wait for um the various department heads to come forward and say, you know, shoot this piece of equipment. It's not working. I think earlier you mentioned we have a squad out there that's I mean inoperable. You can't use it. Um and of course our squad cars take a beating and they they aren't like your uh Toyota at home. they they they need to be replaced and um last thing we want is to have somebody in an unsafe vehicle um in a pursuit, whatever the case might be. And so all these pieces of information come together and they lead us to tonight. Through the course of this time frame, council gives direction on an ongoing basis. We uh will get numbers, we'll examine the numbers. Um we'll have uh a budget meeting where everybody kind of is allowed to put forth their thoughts and their opinions and things of that nature and then uh once we land on a consensus um you know we start to move forward with okay this is the plan now how do we fund the plan and uh one of the things I'm always grateful for is those interactive sessions really help surface a lot of uh different ideas and and different things um by the various council members, staff members, etc. This year we have a new council member uh to my right uh council member Clson who comes with a whole bunch of really really good uh information on the public safety side because he worked a career in public safety for a very long time. So, it was great to have his voice in the room. And when it was all said and done, we landed on 50, five votes for, no votes against, because we felt like we had a really good plan in place. And I'm gratified to see that we remain um the second lowest tax levy per capita, not just in Washington County, with St. Paul Park being below us, uh as a recipient of 800 roughly 2,000. So we'll just round it down to say $800,000 a year. uh in local government aid where the city of Cottage Grove gets nothing. And what that means is the state sends a check to St. Paul Park for $800,000 and says, "Here you go. This will help your budget." We don't get that. Um we also have other communities like Oakdale gets local government aid. Newport gets local government aid. Uh Newport gets $452,000 a year. Oakdale gets $466,000 a year. And oh, by the way, Oakdale also passed a local option sales tax last year. So, they're getting additional revenue that way, too. City of Cottage Grove does not get any of that. So, what that means is we got to sharpen our stubby little pencils and we really got to work hard at figuring out what's absolutely necessary. Um, for example, this year with squad cars, um, correct me if I'm wrong, Brenda, but I think we started with either six or eight that we were looking to replace. um six uh well eight in total and two admins. >> Yep. Two admins and >> two admins and four or uh six squads >> and and we landed on, you know, hey, we can only afford to do two and that's what we did. >> So, um the entire process is intended to be a funnel to get us to this point. And I really have a lot of admiration for the work that the staff does because we ask a million questions and these these poor folks have to go do the research and uh bring forward reports and all that kind of stuff. And let's not forget we're in an era where tariffs are part of our economic future. So a lot of this equipment that we're purchasing is costing more because of the tariff uh financial impact. In fact, um I think we had about $6,000 in tariffs that we had to pay for some public works equipment. Um and nothing gets cheaper year-over-year. So equipment replacement is a really big deal. It's a tight rope. It really is a tight rope. Um, but what's good for for the taxpayer to know and something that I'm very grateful about because I too am a taxpayer is that Cottage Grove delivers an amazing service to its residents. People pay $4 a day. Roughly, $4 a day for all the stuff. That's what they pay for. So, ambulance, fire department, police department, uh snow plowing, parks and recreation, uh that is absolutely phenomenal in the city. All the various programs for the kids, all the different things that we do to maintain our roads and our other infrastructure, four bucks a day. That's uh that's a pretty good deal if you ask me. Uh, and I've lived in Cottage Grove a long time, and I'm going to tell you, in my time in the city, um, as a resident, starting as a kid, I think we have the absolute best service level we've ever had if you're a resident. And that's why we're growing so fast. People come here because they know it's a good place to live. So, kudos to you. Kudos to the team. You mentioned the uh uh tax increment financing district that we took action on last night. Could you maybe just dial that in a little bit more for people so they understand cuz I get it. We we did it last night. But um I think the person watching that's at home would be very curious because it does have a positive impact on their tax statement >> and th this particular uh tiff district. So, this the the state uh lets us know what kind of tiff districts we can have. Um this was an economic development tiff district and it's got a 9-year life cycle. Um and uh there are certain criterias that have to happen. Um if those criterias aren't matched um then it uh is descertified and descertified early. Uh but for the life of a a tiff district um what happens is we have to show uh that but for tax increment uh this development could not happen. And so that was done when it was created. And when that but for uh test is met and the tax increment district is established, uh the taxes that are on that parcel on that day that it was created, uh they're captured. Okay. um those taxes are going to still sit uh and go to the school district, the county and the city. [clears throat] But as the development occurs and the tax capacity or the property value increases, it is being captured. So you take that increased value uh less that original value and that is held in that tiff district uh to pay for those improvements, those but for improvements. um when a tip district descertifies that uh increased market value that taxable value then [clears throat] is released back on the tax roles. And so that is what happened with the action last night. The tiff district was descertified early. And so that uh taxable market value is now added onto the tax roles um at the city, the county, and the school district. And while we are just uh talking uh tonight about the impleations um of the city taxes, that tax district uh descertifying has that $17 impact on that median home. Uh there'll be uh similar things happening um uh to those other taxing jurisdictions. And so when it descertifies, it goes back back on the tax roles. So, not only is it going to decrease uh the property tax uh levy for residents here in Cottage Grove from the city, but it will also decrease what they're paying to the school district and what they're paying to the county. >> Correct. >> Okay. So, that's a big win. And then the last thing I wanted to mention, which you didn't mention in your u presentation, is I believe 2026 is a contract year for us, right? Uh for some of our working groups. Um is that correct? Well, the the contracts expire at the end of 2026. >> Okay. All right. So, we'll be negotiating in 26 for a new contract that will start in 27. And it's always important that we have enough financial flexibility to be uh where we need to be as an employer within the market at that particular time. And that's always a tough one to pin down on. So, in your view, does this budget give us that flexibility to negotiate in good faith? and um you know be be receptive to what the market's going to ask of us. >> Yep. And one of the things that's included in the budget is to go out and uh have um some services done to see where we are in the market to see that we are that uh that employer. So, um sometimes when we look at surrounding communities, uh they have a hard time recruiting for certain positions. Um you know, maybe they're down 15 or so positions uh vacancies in uh their police department. Uh we don't have that situation here um in Cottage Grove uh because of um the >> um positive uh feedback uh to our police um by as as an employer and as the city council, >> right? And you know, we did this poll coal survey uh you know, just several months back and what we heard loud and clear as a council was uh people have a very favorable outlook on our public safety team, which is the largest part of our budget. We we all know that. Um but there was also a lot of positive feedback on public works and some other things. And as we considered the budget for 2026, we kind of leaned into that. Look, people want to feel like their community is safe. They want to feel like their community is clean. They want to feel like the community um has, you know, beautiful parks and trails and things. And so, um the decisions that we made took all of that into account. And again, uh I very much appreciate all of the time and effort and energy that everybody put in. This um calendar in front of me here doesn't lie. It It's a lot. And uh the fun part is once we vote tonight uh and move forward, we get to start it all over again in January. So that'll be super fun. Um but thanks again. I appreciate it. I know this is always a heavy lift, but you guys did a phenomenal job and um full credit to the team. >> Okay. Uh any questions down here? First, >> I'll just add kind of a little bit. This is >> Yeah, Council Member Clawson. >> Thank you, Mayor. Um thank you, Brenda. This is my first year going through the budget process and it was quite overwhelming I must say. I thought it oh it just be easy. We just get a budget and move on. But uh it's a lot of work involved. I just want to highlight a couple things. Justin may have um brought them up but u I retired in 2020 and then I came back [clears throat] in 2025 on the council and I'm looking around at equipment. That's a very big part of our budget. It's a lot of money and equipment and I came back and looked around like well we still have some of the stuff we had when I left five six years ago. I just want to bring a couple comments. Um, we're potentially going to replace a road graater that we purchased in '91, so it's 35 years old. Um, and we bought it used, I believe, so it's even older than that. And that stuff doesn't last forever. And, um, one other item I made note of is, um, we're replacing a fire truck in 26, which is 30 years old. And that truck actually started on fire a year or two ago. Firemen put it out. Um maybe the insurance would have been better, but I don't know. [laughter] Um >> and was out of service for 2 3 months because we going to get parts for it. So um we have an ambulance coming I think end of this year, first part of next year. We have to figure out how we're going to pay for. Um we have a dump truck that's 15 years old we're replacing. So equipment's a big dollar amount, but it doesn't last forever. Um, [snorts] and me looking through the budget, I I'm just seeing that, you know, we're keeping the lights on and we're repairing and fixing or replacing old things. Um, as far as staff, I think you mentioned one police officer, but um I that position might even be partially grant funded. >> Um, >> maybe maybe I'm wrong on that. 49th officer is not grant funded. >> Okay. But we're not adding a lot of staff. Every other department is staying the same. And in fact, we're filling some summer positions with actually part-time people instead of hiring full-time people. >> Y >> um [snorts] we don't have a lot of programs that we fund. We don't, you know, pay NOS's to do housing programs for us. Um so it's a lot of money on this budget. Um, but we uh and I've also looked at that much of the budget increase is a lot of it inflation. It's just that it just costs that much more to do business. Everything's more expensive. So, is it a the best budget uh that I would have liked personally? I I would like to say a little less, but I'm just looking at all the numbers and all the things we need and um we kind of hashed it out in our meetings and we arm wrestled over things and this is where we arrived. So um I'm going to support the budget the way way it is right now. >> Okay. >> Thank you, mayor. >> All right. You want to wait to talk? >> Wait. Okay. All right. So, what we're going to do then um cuz I'll wait till the end also. Um uh this was the opportunity obviously for council to ask staff questions and such. So uh this is a public hearing. So I'm going to go ahead and open the public hearing and >> [clears throat] >> uh what we would let you do if somebody wants to speak on this topic uh is welcome to just go up to the podium just state your name and address for the record. And you do have up to three minutes uh to come share uh any information. I know our staff will take notes and then maybe either answer it at the end if you will um or we'll take notes up here and we can answer it at the end. So, yeah, if you'd like to come up. Absolutely. >> Thank you. >> Yeah. >> Now, if I get red in the face and anything, it's because I've never really done this before. Um, >> you're okay. >> Thank you, Brenda, um, for She left. >> I don't have my glasses on. So, thank you, Brenda, for explaining uh the budget and for giving a phone number for senior citizens to call about taxation. I didn't see that in any of the other stuff. So, thank you so much. Much appreciated. And thank you, Mayor Brian uh Myron, I'm sorry. Yep. >> For um letting the other uh cities in our area know about EMS and that um our city is like supporting them and we would appreciate some of their help. [gasps] >> Well, as you can tell, I'm an elderly citizen um here living in Cottage Grove, 8052 Ivywood Avenue South if I need to get that on the record. >> Thank you. Um, and I lived here maybe 20 years before I lived in um, St. Paul Park. So, what's happening as a senior citizen is what I'm seeing is that people are struggling with uh, decisions to be made um, with living here or moving out of state. That's just the the thing with Minnesota in general. Um but what also comes in is that I've seen senior citizens do oh what when you turn your property back to the bank what re whatver reverse mortgage so that all they have to pay then is their >> their taxes and their insurance but this causes more stress on the family also. So these are just struggles that I see as a senior citizen in our community. I do know that our community is growing and then that with that growth um that also will add money to the coffers and it doesn't look like you're hiring a whole lot of staff with all the houses that are coming in. So, I do know there's added revenue coming in just because it just makes sense. Um I just appreciate being heard. I just wanted to let myself be known um and that I do love living in Cottage Grove. Thank you. Can we can we get your name too, please? >> The name for the record. >> Oh, I'm sorry. Didn't I say I'm sorry. Sheila Grittner. >> Okay. Thank you, Sheila. >> Yeah. >> Thank you. Is there anybody else that would like to speak on this topic? >> All right. Seeing none, I'm going to go ahead and close the public hearing. Uh, and we'll have some conversations for the council. And I know Brenda will put the motions back up on the table. Uh, one thing I would mention to you, it's interesting when you talk about the growth, one of the things that, um, a lot we know on the council and our staff knows, um, from the growth standpoint. So, all these new homes that come in, because I do hear that, right? Oh, we got all these new homes, you're generating all those taxes, they do provide taxes, but not for the first year. Uh because uh the first year and as originally when I bought my first house here in Cottage Grove, the taxes on on year one is for your property only, the land, >> uh not the building, which >> Yeah. And so then I've seen a couple comments on social media about my taxes went up 100% or whatever. And when I see that I'm going, okay, that has to be a new home. be that the first year they got there, their property tax was really low because they were just paying for the the lot where the following uh following year obviously they got their I'll call it sticker shock because it went up so high to capture now what's the value of the home on there. So, thank you for bringing that up because I thought that might be something that the general public might need to know. Okay. All right. Um so, Council Member Baiti. Okay. So, [sighs] I uh uh I guess I I I'm first of all, I I I will say that uh staff does an excellent job and and uh uh and the the budget can be a stressful thing to to work with. I've I've been involved in a lot of them in my over my my career and and management. uh mostly in the in public companies and so forth, not in municipal and things like that. But um [clears throat] I guess this year I wasn't uh wasn't too happy with the with necessarily how things worked out. uh you know originally we get together in in uh the summer and uh uh staff actually I believe did an excellent job coming in with a budget that they said would work that was under 10% increase in the uh in the levy. Then uh as we things were discussed um somehow it uh not not necessarily from staff uh the uh there was about a million and a half dollars added to the to the levy taking it all the way up to about the 15% that uh that we have now. [snorts] Um, at the time, uh, I said okay to it because I knew we'd have another chance to look at it up until this, uh, this point, uh, tonight. And, uh, there was certain things that, uh, that did happen that we really didn't know were going to happen. We had a longest ever uh, government shutdown, which affected a lot of people. you watch the the news on TV and and the food uh uh they're they're handing out food pantries and that so forth are handing out more and more food and and different customers that uh that never had to uh to use the uh the food pantry before. Um, also we saw as as you looked at different things that uh that we ended up with the the highest percentage increase in the pretty much the metro area if you look at comparable cities. And uh so those two things uh uh were enough for me to to kind of really step back and and take a look at it. And and uh you know, I feel that um that we're probably just asking too much from from the uh the citizens of the city to to pony up uh more money. I think uh you know after talking to staff a little bit and revisiting the the initial budget that was presented to us, there's some things that we might be able to do uh without uh this uh next year and and uh and put it into the year after. I know we're uh we're up for reviewing the uh financial management plan and at our Jan January uh strategic planning uh meeting uh as uh since this uh this $153 which actually the tiff is nice that'll bring it down that that that's good and and I I have to admit that that the ones you know the prior years actually started out all over $100 uh and and ultimately we found a way well not we but the staff found a way to to actually decrease those uh in terms of the impact on the on the population but uh I don't think that that Brenda has enough magic in her to to uh reduce that uh 136 on what it would be after the tiff numbers down to down to $100. But but again if if we go into the strategic uh planning and we decide that in that financial management plan to really take a look at at another u method to to look at what those increases are going to be. uh you know and that all involves looking at population growth, looking at what kind of services and things of that nature that we need and and maybe that that $100 a year increase is is not reasonable. But, you know, trying to take a look at at something that uh we can can actually show that a plan and and so that people know what to expect in terms of increases. Uh and and we always do say that well this is only a little increase but but you know when they get bombarded with about 10 or 15 little increases all of a sudden becomes a big increase. So um uh you know it it uh I don't like necessarily going against uh you know the uh uh what's presented to us here. But, uh, I'm afraid that I'm probably not going to I'm not going to be able to support this, uh, this increase at this time. >> Okay. All right. Um, so just, uh, one, uh, a couple general comments just for the public and then, uh, I'll look for motions from the council at this point to move forward. So, first of all, again, thank you to our staff uh, for uh, all the hard work over the many months of putting this together, trying to figure out, you know, what what's the number. I don't know that um and I know council member The mentioned I don't know that anybody really liked this budget. Nobody likes it when you you're into this, you know, double digit kind of situation. Um I believe it's the first time in my 16 years as mayor that it's been to this level, right? Um but to to the point that has been made up here, there's a couple things that that we have to do. And one is we have to shore up our equipment replacement fund. Um the amount of equipment that we need to operate and continue to do what we do in our community uh is by far one of the most one of the most important thing next to having people right all of our public safety personnel and so on. And what has happened in the past, just to put it out there, is on previous budgets, even in the last couple years, to be honest with you, um the the goal on our on our uh management plan, a financial management plan, was to kind of try to stick at that $100 range, and we had some, you know, and to average it out there. Well, ironically with uh the Tiffy certification, if you look at, you know, the so far as we've went forward here, it will be under uh it'll be 90 I think you said 97 $97. But what was interesting is we were planned to be at more for years one and two, but based on the discussions and the messages that we had in council, we said, "All right, no, we let's push it down. Let's be lower. Let's try to be lower." Even though the financial plan told us to be at this number and to be frank with you, if we would have been at that number, we would not be at a 14.9% increase this year. Just going to say it. But we every year we look at these budgets and we go, "Okay, we're going to move the number around and try to figure things out." So the reality is between equipment replacement um you know obviously the personnel the the increases and such to um wages and inflation is really uh what's driving this. The other the other one and I do appreciate it was and I appreciate that you made a comment you you've seen my comment out on social media with regards to uh the EMS service. You know we're we're going to continue to work on that just to be quite honest with you. Uh matter of fact, that is one of the topics that our council is going to be discussing the future on. Uh with regards to DMS and and should we or will we continue to do services to the communities uh that are outside of Cottage Grove, there's a variety of options that are available to us. But I'm also hoping that our neighboring communities will uh work with us uh to come forward with uh some financial support uh to help so that the citizens of Cottage Grove are not paying the entire brunt of all the cost of running an ambulance service. and running. I know you see on that budget piece on here there's about a $70,000 ad, which is the first time we've ever had to do that. But that's not I know people will go, "Well, it's only 70,000." Well, it's more than that, though, because our wages for those paramedics are also in the general fund that the citizens of Cottage Grove are paying for. the ambulance which now is I'm going to look 400,000 300,000 300,000 or so for the ambulance and then which we have to buy this year and then secondly is all the equipment that goes in that ambulance and I've seen the the numbers that uh our uh chief doctor John Pritchard has shared with us and we're talking you know 50,000 for a a stretcher you know 50,000 for a heart monitor I mean all these things add up so what an ambulance costing 300,000 and really cost us over a half a million dollars. And again, that's being borne by the the citizens of Cottage Grove. And and you know what, if it was just our community, I would say, okay, you know, then we have a decision as a council to make if that's something that we decide we want to do, if we want to, you know, spend the extra money or whatever to make sure you do that. So, I I say and thank you for bringing that up because we will still press this um with our neighboring communities um and talk to them about what what we hope will be um a successful outcome and then a future that will look uh into the uh look look into the future to see what we want to do for a a permanent solution that will help. Uh last thing I'll say on that though because this is my chance to be on the soap box for a moment on the budget piece and EMS. Um the biggest issue with EMS, just be quite honest with you, is um Medicare and Medicaid funding. Um the amount, you know, on average, if it might take over $2,000 for an ambulance to go to your house or do what they need to do, it's about a two two with all the pieces that make that up is about $2,000 or more depending on what you need. But the amount we get from Medicare Medicaid is $300 to $500. And so if you think about the number of Medicare Medicaid runs, and this has nothing to do with all just seniors in Cottage Grove or it isn't. It's it's across the entire area. Um that's was that's really what's driving the the challenge here. So um we we have the best I will say that we have the best paramedic system, the best police officers, firefighters, public works people. I really honestly believe that and uh we want to continue to be the best going forward. So, I will support the the uh uh the uh the um budget that we've got before us at this point. And so, council, I'll look for somebody to make uh we have, I believe, uh three separate uh motions that need to be done. >> Um I just want to make one more one more comment Mayor. >> Yes. Oh, I'm sorry. Yeah, go ahead. Uh thank you. Um, council member Theta, you brought up when we were in our um, meetings that everything was we added [snorts] 1.5 million in the equipment was kind of the sticking point for you and I and I and I uh, recognize that. Um, but when I one thing I noticed is that during the COVID years, we really kept the budget very low and pushed off a lot of equipment purchases. And good or bad, it happened. I respect the council's decision back at the time. But however, I'm looking now and seeing of all the things we've delayed, this was kind of we knew this day was coming that we're going to have to spend a lot more money on capital expenses. And um the I hear what you say. Um I understand it, but um I wish it was better, too. Um, thanks. [laughter] >> All right. >> So, mayor, I'll make a resolution. Are you ready for that? >> Yep. Go ahead. >> Okay. Um, I'll move adopt resolution 20251 174 adopting the 2025 property tax levy collectible in 2026. >> All right. So, I have a motion by council member Classer. Do I have a second? >> Second. >> Second by council member Olsen. Any further discussion? Seeing none, all those in favor signify by saying I. I opposed. >> Nay. >> Motion carries. Uh 3 to one. >> Mayor, I'll move to adopt resolution 2025-175 adopting the 2026 budget. >> All right. So, I have a motion by council member Olsson. Do I have a second? >> I will second that. >> Second by council member Clawson. Again, any discussion? Seeing none, all those in favor signify by saying I. >> I. Opposed? >> Nay. >> Motion carries 3 to one. And then the final >> I'll move to adopt resolution 2025176 adopting the 2025 housing and redevelopment authority property tax levy collectible in 2026. >> Second. >> All right. So we have a motion by council member Clawson. Second by council member Olsen. Any further discussion? Seeing none. All those in favor signify by saying I. >> I. Opposed. >> Motion carries. Thank you again Brenda and team uh for everything you did there. All right, our next uh uh uh public hearing is B, which is the 80th Street re rehabilitation project. And this is the public hearing. And uh Paul Spunhost, our city engineer, is going to walk us through this. And I'll be honest with you, other than the cost of it, it's uh definitely needed [laughter] re reconstruction of 80th Street. All right. Good evening, mayor, council members, members of the public. This evening, I'll be giving you information on the upcoming uh 80th Street and East Point Douglas Road rehabilitation project. Main purpose of this presentation tonight is to uh discuss the need for the improvements. We'll discuss current conditions, proposed improvements, the construction staging plan, and their anticipated schedule. If the city council decides to move forward with this, final assessments would be considered after the final costs are determined uh later this fall in 2026. Uh I'll discuss the preliminary assessment role, and we'll discuss that assessment process, though. 80th Street and East Point Douglas Road are significant corridors through the city. The project on 80th Street was identified for improvement in our capital improvement plan for construction here in 26. The 80th Street is a four-lane divided roadway classified as a minor arterial road and is part of the municipal state aid system that receives state aid funding. Compared to collector roads or local roads, arterial roads, their primary purpose is to just move traffic with little or no direct access to uh properties. But 80th Street does provide some direct access to several businesses, schools, and multifamily residential properties. 80th Street is a critical route for the city with over 23,000 vehicles a day, the busiest uh street in the city. It connects residential neighborhoods, the Gateway North Commercial District, Park High School, Crestfield Elementary School, the Cottage Grove Ice Arena, and Highway 61. The city is expecting additional development and redevelopment. So, traffic is expected to increase in this corridor. Also, we are including work on East Point Douglas Road south of 80th Street. The proposed construction similar in the work that we're doing on 80th Street. So, it made a lot of sense combining the two two projects. doing the work will uh jointly will combine traffic impacts and uh provide some economies of scale. Like 80th Street, East Point Douglas Road is a four-lane divided road, a minor arterial route, and part of the municipal state aid system. While it provides significant traffic movement carrying over 19,000 vehicles a day, it also provides direct access to the Gateway North commercial area. As we began looking into the 80th Street project several years ago, we learned of the upcoming mindot project that they wanted to reconstruct the ramps on the trunk highway 61 80th Street interchange. So the city Mandot and the county worked together to combine the projects into one project. Again, uh saving some uh uh efficiencies for construction using economy of scale for those costs. And we can incorporate the lane enclosures of our project and the ramp enclosures of their project, lessening the overall traffic impact compared if we would try to do this into two separate projects in two separate years. The 80th Street project has been in the in the city uh capital improvement plan since 2012 with work along the corridor uh starting on the east end uh reconstructing 80th Street from Jamaica to Keats. We had a pavement rehabilitation project between Ideal Avenue and Jamaica Avenue just east of this uh segment. And then now we have this current segment here scheduled for next year. This portion of 80th Street was constructed originally constructed in 1982 along with a construction of the trunk highway 61 overpass. It was milled and overlaid in 1998 and later turn lanes were lengthened and uh signal improvements were completed. East Point Douglas Road, originally constructed in 1975, has had several widening and turn lane improvements along with mill and overlay projects and signal upgrades. Since then, with a lot of maintenance effort, as you can see in some of these uh pictures, we got a lot of patching here. We've gotten some significant use well past the uh the street's design life. For arterial roads like these, we want to maintain a significant high level of service to accommodate those high traffic volumes. However, now we're seeing a significant amount of deterioration with potholes and cracking while we have maintained that with significant patching. As this pavement continues to age, we'll see it deteriorate even faster, which will require more significant effort to maintain. Also, this pavement's developed rudding. Really hard to see in these pictures, but rudding is underneath the wheel paths. The pavement has deformed, has sunk into some grooves. Those grooves hold water and ice. Our plow our plows are not able to clear the snow or ice efficiently. And even the uneven uh with that uneven slope of the roadway. Also, that rudding holds water where vehicles can hydroplane. Ice and water becomes a significant safety concern as vehicles aren't able to maintain traction then lose control. Over the years we've made efforts to accommodate the everinccreasing traffic along the route such uh at one point we extended the left turn lanes um at the hardwood intersection making them a lot longer in 2016. However, it's time for more work to accommodate the existing uh traffic uh volumes and even the future traffic volumes moving forward. Already we got traffic delays that we know of at Hardwood Avenue and Hinton's intersections, signals throughout the corridor. Well, we've upgraded over the years. There are additional updates we still need on many of them. Uh particular at the Hyde Avenue intersection here that we show here at the bottom of the slide here. Um we have a basically a six-legged intersection with a frontage road. It's that signal. We've identified some deficiencies that uh with that complex uh situation there and we just need to upgrade that, replace those signals so we can improve the safety and operations of all these intersections here. Throughout the corridor, there are pedestrian concerns that should be addressed to improve their mobility and safety. While most of the sidewalk is in generally good condition, there are panels throughout needing replacements. There is no sidewalk between uh trunk highway 61 and the Culver's restaurant on the north side of 80th Street, leaving a significant gap in the sidewalk system. The entire corridor needs updates to pedestrian ramps and our signals uh to accommodate the current standards of the Americans with Disabilities Act so we can improve those uh the mobility for those pedestrians. Overall, the utilities under the corridor are in general good condition for water man. This project does suspend two of our water pressure zones which are separated by a pressure reducing valves. Those valves needs replacing. The storm sewer under the project also in generally good condition. And since we're able to leave most of the curb and gutter in place, we can leave most of that storm sewer in place. But there are some miscellaneous manhole and catchbas and structure repairs that we do need to do them. For street lighting, concrete poles are outdated and at the end of their useful life need replacing. So just kind of summarize the um the deficiencies and terioration. We got these proposed project uh improvements consisting pretty much we're going to replace the pavement throughout the entire project. Uh conduct a bunch of utility repairs, replacements, and other miscellaneous work as we described in the feasibility report the council approved several weeks ago. Note that we are doing a rehabilitation project, not a full-blown uh reconstruction project. So, we're able to save some significant funding, our money, for example, by leaving most of the base underneath the pavement, the base aggregate in place. Most of the curb gutter will be able to stay in place and those utilities are staying in place. So, it's not a full-blown reconstruction, just a rehabilitation. City, county, and state are working together to complete these improvements. Um, in addition to replacing all the pavement, uh, we'll be adding dual left turn lanes at, um, Hardwood Avenue. This should allow the left turning vehicles to, uh, clear those cues lining up for that signal a lot faster, giving a lot more signal time for the other movements of that intersection to improve the uh, operations and capacity of the intersection. at [clears throat] at Hinton Avenue. Uh we're going to be u extending the uh the left turn lane uh for the eastbound traffic. Uh um we'll have to make some changes uh at the median there, but basically extending it through the left turn lane that also provides uh turns for the uh funeral home there and kind of use both of those um turn lanes as one large turn lane. >> [clears throat] >> also be improving turn lanes in front of the the schools as part of their um reconstruction projects at those schools here. [clears throat] Like I said, Mandot is a partner here to uh replace the pavement on the interchange. And as part of their work, they're also replacing the uh the signals at the uh at the intersections with the interchange. Like I said, we'll be uh replacing the uh signal at Hyde Avenue and making minor upgrades to all the other signals on the corridor. With all these improvements, the city will be able to provide better traffic control, better traffic flow, a safer corridor, and a new pavement that will hopefully last for decades. I'd like to give a brief outline of the project staging and scheduling. We discussed this quite a bit at the previous city council workshops and with neighborhood and business meetings. We are planning a u another public open house sometime this spring which we can discuss this a lot more in detail and let the public and uh community especially the business owners and so forth understand the impacts and how we're going to get traffic moved around. But if this project is approved, all the schedule is preliminary and really depends on the contractor's operations. But we would hope and anticipate the contractor starting work as soon as possible in the spring uh in April and May [clears throat] throughout the project. We'll maintain some sort of access to all the businesses at all times. We'll maintain at least one lane of traffic in both directions for the west end of the project west of Hardwood Avenue. But on the east end here, east of Hardwood, uh at times the traffic will only be allowed in the eastbound direction with the rest of it detourred. So starting in April and May, we'll start setting up for major construction by u doing some work at the at the medians. What's highlighted in the blue here would be uh toring out and uh setting up for u moving traffic over from one side of the road to the other. Then uh early summer we'll close the westbound lanes, move that traffic over, close the southbound lanes, and we'll close the northbound or the north side ramps here with construction shown in the the areas in in orange here. We'll maintain the two-way traffic with single lane only uh from Hadley to Hardwood as well as long as East Point Douglas Road on the portions here in yellow. Then from Hardwood to the east, we'll just maintain that eastbound traffic. Uh in uh up until June, with the school still in session, we'll uh continue keeping uh both lanes of traffic or both directions of traffic open in front of the schools and delaying the construction right in front of the school until school uh is out. Once school is out, we'll close the westbound lanes in front of the schools and continue uh with the construction project uh in those lanes. Then we'll kind of focus our efforts there in front of the schools, try to get that work done as quick as we can. So then we can move the traffic uh over to the other lanes here and uh continue uh constructing u um the uh eastbound lanes then in front of the schools. um while still working on the on the west end here. But the intent there then as soon as we're done with that, we can get everything back open again for uh schools uh opening in uh September. By late summer and into the fall, the westbound and southbound lanes will be completed. The work that's shown in the green here, everything in front of the schools will be open. Then we'll work on the construction in the eastbound and northbound lanes shown in orange. We'll also close the uh south side of the interchange for that work. Late fall then we anticipate restoring traffic into their normal lanes and then continue to uh maintain at least one lane of traffic in each direction as we complete all that median work and uh restore the crossovers. Like I said earlier that tonight's meeting is mostly about the need of this project, but I do have some information on the assessments here. There will be another public meeting if the if we move forward with this project in the fall of 2026 uh specifically regarding those assessments. The project will be assessing property owners that are adjacent to the project. Parcels highlighted here in red and orange and green are proposed to be assessed. Red is commercial district area. Green is uh the multifamily residential and orange is the school district properties. On the south side of 80th Street between Hemingway Avenue here and and Ideal is a city frontage road. Uh so the costs along that portion of the project are assigned to the city. Here's an estimate of the the project costs uh breaking out the total cost versus just the construction costs. the combined uh portion between 80th and East Point Douglas uh the construction uh cost comes to about $10 million. After we include all the engineering, construction, inspection, and testing, the total project cost for the city's portion is comes to about $12 million between those two uh parts of the project. Mindot's portion and the county's portion of the project comes to just a little over 5 million in total. um with the the interchange work, that portion of the project is not part of our assessments. So, the total project cost comes into just a little over $17 million. Assessments are proposed to contribute to the funding of the city's portion of the project. based on this city assessment policy that we have. We uh calculate uh assessments uh according to a calculation that we have and those assessments based on that calculation would total $7.6 million. However, we do a uh special benefit appraisals. We uh brought in BRKW appraisals to complete uh special uh benefits appraisals on all the properties and they determined that the total value of all those uh um benefits would be $1.5 million. Uh so that's the maximum we would uh uh be able to um assess the properties here. We did send a preliminary assessment of uh values to all the property owners that are uh impacted here and then we had a uh we held a u a meeting with uh with them a couple weeks ago. There are 37 different parcels owned by 29 different property owners. The special benefit appraisals valued those individual parcels uh from everything from $1,900 for a parcel to as much as $251,500 per the parcel. A lot of different things that go into that different access uh size of the property and so forth. So, with the uh total project cost coming in a little over $17 million, we have uh several ways we're bringing some funds into this. We did uh secure a $5 million federal grant of uh and then uh we have TIFF funds that are contributing 1.8 million to this. MDOT's uh funding their work, $5.2 million. Uh the county is contributing to part of that for their share of the intersection work on 80th Street. The the far end of the project is actually a county uh highway um route storm uh excuse me uh sewer and uh water utility funds are contributing 50,000. Like I said the the assessments are valued at about 1.5 million that we'll be contributing and then the the remainder of the project will be funded with uh uh municipal state aid funds. Those are the uh as state aid routes here. Um the state contributes uh uh funding from our uh the fuel taxes we pay when we uh buy gasoline and so forth. Uh and uh we get about 2 and a half million a year from that aotment. We'll be requesting uh an advance of that funding from our 2027 aotment so we can move the project forward. If the council decides to move forward with the project after we determine the final construction costs next fall, we'll hold the assessment public hearing in the fall. If city council adopts those assessments, then property owners may pay that assessment within 30 days of the council making that adoption uh to avoid interest charges. Otherwise, uh the assessable the assessment would be payable over 15 years with a interest rate 1 and a half% above the bond rate. Partial payments are allowed before that 30 days is over. Uh once the project is ordered by the council here, that would uh this pending assessment would show up on the the property records. Deferrals are available uh if qualified u such as for disability, military or uh age, but interest still occurs during those uh deferral periods. So I'm here moving forward our uh here's what some of the work that we've already completed here and uh some of the next steps moving forward already we've uh completed the feasibility report uh plans and specs are in their final uh stages now uh just about ready to be completed here. We did like I said hold a meeting in November for the assessed properties. We got to meet several of those uh property representatives and then uh since then I've also spoken to or had email correspondence with some others. We did provide notice for the public hearing today uh published in the uh the newspaper and then uh we did send notices to uh property owners in the mail if the project moves forward. We anticipate advertising for bids and awarding the bid in March. Um, sometime in spring, we'll hold, like I said, another open house meeting to discuss more details of those uh traffic impacts and how to get around the project and so forth. If all goes well, we'll uh get construction going in April and hope to wrap it up by November. Once final costs are determined in the fall, we'll hold that special uh public assessment hearing. And then um we are working on uh more details on getting the message out and providing information to the public and navigating uh the construction uh I'll say chaos. Unfortunately, it's construction is never easy. So um we will be working to get all that out there via our email updates, social media, website. We have uh just established a project web website. You'll be able to uh click the link uh on the city web page. Uh the city or um newsletter uh that's coming out here in December. Um Cottage Grove Reports. We'll have a link to the project web page. Uh so um and just verbally here, it's 80th Streetcgall oneword.com. 80 adstreetc.com. So check it out. We'll have that'll be constantly updated throughout the project and more information will be provided on that page soon. So So [sighs and gasps] that ends my presentation here tonight. Uh staff brings these recommendations to the city council for your consideration uh to uh conduct the public hearing on the need for the improvements and to adopt the resolution then to order the project. Uh I do want to remind the council that the resolution needs at least a four fifths vote for the project with uh council member Garza out tonight. That mean we'd need a uh all four [snorts] of you to approve it here tonight. So with that, do you have any questions? >> All right. Thank you, Paul. Uh council, any questions? Uh council member Olsen? >> Thanks, Paul. Uh, I know you've had to put us through this presentation maybe now three or four times. So, gets better [clears throat] every time, just so you know. Um, a few questions. Uh, and I'm just going to kind of put them in a lump sum here for you. [clears throat and cough] Question number one has to do with the timing of the project from start to finish. Weather can be a factor. Uh, and we dealt with something a couple years ago when the roundabout near Target was being constructed where we had just unseasonably wet weather uh that put our construction projects um throughout the city kind of, you know, in a little bit of a tough spot. So my question is this, understanding that we have a a tight timeline and it's a it's a big project, right? And and we want to get it buttoned up in a year. Um, should there be any weather impacts, I is there some sort of provision in um the the bidding or um the choice of who we would use to actually do the work that they would potentially work on weekends if necessary or later in the day if necessary. most of our stated uh contracts with uh contractors and um um we do know that there are um weather delays throughout the summer. Um we have kind of standard uh estimates of what is expected for um normal uh times that the contractor would not be able to work. So that is included in their schedule. It's included in our schedule. So we do make allowances for I guess what would be a typical >> um weather delays that are expected. Um >> but uh yeah we do have and then we do mandate a deadline for the contractor with liquidated damages if uh if the contractor fails to meet that deadline. So um and with the amount of work that is scheduled for this, the contractor is going to be expected to understand uh that scope of work and the timeline and we'll uh um we don't mandate their schedule. But if they're falling behind, we'll certainly say, "Hey, if you aren't working weekends, it's probably a good idea because those liquidated damages are going to come." And those liquidated damages are not as a um a penalty on the contractor. It's a recognition that there are damages to the city, to the public for the delays if they can't get it done. So, >> in particular, I was thinking about the businesses that'll be impacted. So, I appreciate you clarifying that because that >> certainly could get to be sticky if you know we didn't address it up front. And then the the last question I had for you is uh I know that when we do road projects like this, there's often an opportunity to televise sewer lines, hydrojet, do different things uh to maintain some of the infrastructure that's there. Do we have any plans to uh as the project goes along, you know, look at things like underground wiring for street lights or or um like I said, sewer lines or uh what what have you. Um, since it's going to be available, it's right there, right? We don't we don't have to we don't have to uh dig underground because we'll already be digging. >> Yeah, good question, council member. We I did do I believe we did do all those uh video logs of the systems uh uh before the um getting into as part of the feasibility report. Right. So, um, we've seen what those look like and and determined they are in relatively for the most part good condition and we have identified a few things that need repairs that we will do as part of the project. So, >> okay. Well, good enough. Sometimes when you dig in the ground, you find stuff that you didn't quite expect. So, >> there's always that, but >> yeah, hopefully that'll give us an opportunity to address some of those things because it is such a busy roadway. You want to do it right the first time, right? So, okay. Thank you. >> Yeah. Awesome. I don't think there's any other questions on the council at this point. So, thank you, Paul. I'm going to then go ahead now and open the public hearing. This is the opportunity again if somebody would like to ask questions or speak on this uh topic is welcome to do so. Is there anybody at all? All right. I guess seeing none, I will go ahead and close uh the public hearing. And uh I know he just flipped the thing off there if he wants to put it back on. Otherwise, we've got it on our sheet in front of us. There we go. >> Perfect. >> All right. So, council, uh, we have, uh, one motion, uh, that needs to be made. The first one is >> I'll go ahead and, uh, move that [clears throat] we adopt resolution 2025 178 ordering the 80th Street, [clears throat] uh, Highway 61 to Ideal Avenue, East Point, Douglas Road, 80th Street South, to T intersection, and Highway 61, 80th Street interchange rehab project. >> All right. So, I have a motion by Council Member Theiti. Do I have a second? >> I will second that. Second by uh council member Clawson. Any further discussion? Seeing none, all those in favor signify by saying I. I. Opposed. >> Motion carries. There we go. You got all four of us there on that one. >> Yep. Paul can sleep well tonight. >> All right. There we go. Um 10 is bid a warning this evening. Uh we have nothing under 11 regular agenda. So we're all all the way down to council comments requests. I'll start with Council Member Mccclson if anything. >> Um just one tonight. Mayor, um, in January we have our annual planning meeting and I'm wondering if um, these assessments are not fun to talk about and people get sticker shocked by them. And u, back in 1996 or 97, we had a pavement management task force that came up with the formula and let's just talk about it at our January meeting and see if we still have the right assessment dollar amount. Um, are we comparable to other cities just [clears throat] to make sure we're um fair to everybody, I guess. >> Okay. Thank you. >> All right. Thank you, uh, Council Member Olson. >> First of all, good idea, Council Member Clson. We have done a few of those check-ins over the last, I don't know, 20 years or so, but we haven't really substantially looked at do do we even maybe need to bring the pavement management team together. So, um, I think that's a great suggestion. Look forward to that conversation. Uh, Mayor, all I want to mention tonight is there's a million things going on for the holidays and I know you're going to cover most of it uh because you are Mayor Christmas, but um as the president of the uh Cottage Grove Lions Club, I feel compelled to remind everybody that this coming Sunday at the VFW, we have a Santa breakfast for uh kids of all ages. Um this is going to be a ton of fun for people. Great meal. You get to sit on Santa's lap. Uh yes, John, you can sit on Santa's lap. You you qualify. Um Sparkles the Elf will be there. We'll have uh all kinds of, you know, giveaways that we're going to give to the kids. So, it starts at 8 in the morning on Sunday at the VFW. It goes until noon and um it it's going to be just a ton of fun. $12 for adults, $8 for kids. And like I said, every kid that um comes to the event gets a little ticket that they can drop in a bucket to potentially win some fabulous prizes. So hopefully we'll see you all there. Um I'll be running around cleaning tables. That's what I signed up to do uh along with my wife and u my kids who are all Lions Club members. But it's more fun when more people come. So please plan for it. Sunday the 7th, VFW, 8:00 a.m. to noon. The mayor is always there, too. So come for no other reason. You get to maybe sit on his lap, too. Okay. Thanks. >> That's it. All right. Council member The >> I'll defer to you. >> All right. So, a couple things. First of all, more of a an official thing. [laughter] Want to make sure I never forget that. So, um at our last uh city council meeting, we did uh have a closed workshop or close session. And uh when we do a close this in this case the close session was to evaluate I give our yearly evaluation uh and performance review of our administrator Jennifer Levit and um after that meeting happens or that closed session happens I have to come back at the next meeting and just mention you know that we did it and that uh I can share with the public that we're um gave her a very good review. Um staff did a or um a council I should say. um we kind of do our own thing with the the form and then we kind of put it all together and it's like oh we're all kind of about the same on everything. So um just wanted to mention uh uh great job uh Jennifer on the uh the past year and uh we also gave her a few uh goals and objectives for uh 2026 going forward. So uh we'll continue to do check-ins throughout uh the next year to make sure that we're on on on par to make those things happen. Um, and then as council member was uh Olsson was mentioning and I think it was deferred to by or deferred by council member Mthiti. Um, so tomorrow evening, depending on when you're watching this, but tomorrow evening on Thursday, December 4th, uh we do have the hometown holiday celebration uh right next here at city hall, uh there's going to be a lot of uh fun things to to to go on here. And it basically the event officially starts at 5:00 and goes to about 78ish. Um, I do know the weather's been if if for Minnesota it's a little bit cold out there, but the >> your woollies. >> Yeah. Do be warm, but we will have fire rings out there with with, you know, uh, fire going out there to keep it warm. We got a tent that's got heaters in it. The city hall will be open. There'll be movies, I believe, going on again in the in city hall here for kids for the holidays. Um, there's going to be reindeer here. Um, blowups, Santa, Mrs. Claus will be arriving. Uh, obviously we're going to be having a good time. the I believe the Park High School choir is going to be here. Uh but one thing I did want to mention is uh the obviously the parking lot here because we have all the Oh, and food trucks. I forgot the food trucks. Uh but all the the parking lot here is going to be pretty much uh blocked off. So you're going to go, "How am I going to get here?" So I will tell you there will be wagon rides. Um so you can take you can stop at the Hero Center on the north side or you can go to the Washington County Service Center on the south um side. You can get on a wagon ride, take a wagon ride. takes right up here. You get to come in. Uh kids can meet and sit on Santa's lap. We got a little uh chair and all that set up out here. Um so I just wanted to mention we've had great success over the last few years of doing that here. Um our uh city staff uh uh public uh parks and recreation staff do a great job of of putting it all together. So I I encourage you to come and join me and I'm assuming uh most of the council uh at this event tomorrow night and um enjoy your community. Uh the other item I want to mention is obviously we're just over a week away. Uh Saturday, December 13th. Uh at 5:15 is the arrival of the Canadian Pacific. Um Canadian Pacific slash >> Kansas City. >> Kansas City. KCP. Yeah. CPC. Um I know they changed all that again, but uh they have their holiday train that's going to be arriving here once again in Cottage Grove. Uh it is down along uh West Point Douglas Road uh near the Youth Service Bureau. Again, there will be uh you can either walk from parking lots or there'll be again a wagons and such that'll take you whether from the park and ride. There is other some options to park down in that area. Uh again, they should try train should arrive around 5:15, but there is going to be stuff going on before and a little bit after. Uh we'll keep our fingers crossed that the weather will be decent. Uh but there is music and of course the purpose of this to be uh right out there in the front is to support our local area uh food shelf. Um, and so whether you can bring cash or whether non-p perishable food items, um, they're already in the fundraising piece. I haven't heard the latest update. Pete, any update? >> Goal is 125,000. We're getting close. >> All right. So, our goal is 125,000. Sounds like we're getting close already, which is great. Great news. And we really want to um thank the uh CPKC rail um because they're the ones they they they put this event on, but they also present the city uh or the the uh friends in need food shelf with a a decent sized check. Uh and of course they do this all around the country and I always love to plug this. Uh Cottage Grove is their biggest stop. Uh it's the most money raised stop in the US. And when I say the biggest stop, it's the biggest in the sense that the number of people that show up to actually uh be part of the celebration. So again, another opportunity to give back to your community, but also have a good time for the holidays. And then lastly, um uh if somebody, if you saw my uh social media post uh uh like two days ago, um I I made a comment. and I took a picture and made a comment that a a uh uh nut a very large nutcracker showed up in my front yard. Uh and for those that know me, I know he made a comment next door here, Mr. uh Councilman Olsen, that I'm like Mayor Christmas. My house is completely decorated and uh uh there's kind of a joke and I I kind of know who I think put this in there, but we have this big tall nutcracker now in my front yard along with all the other lights and stuff that I have in here. And it's a hockey thing, Zach. I'm just telling you, it's a hockey thing. Uh hockey parents that did that. It just showed up uh out in our yard. So, that's been kind of the joke um in the hockey community and also in the neighborhood. But the reason I bring that up is because Cottage Grove does have a holiday lights tour going on right now. And so, if you want to uh see my house or others that are amazing around our community, uh go on to the city's website. You can download the map. The map will actually guide you along what's the best route to get to to all these different locations in Cottage Grove. And um let's say you go buy a house and or you you are a house, but you didn't you go, "Oh, I didn't put my house on the map." You can still do that all the way up to December 15th. So, um and the map will just automatically update itself. So, I encourage you to to do that. Um get out there and see some of the great lights uh now that we have some actually some snow. Um and then again um have have a good time and enjoy uh your community of Cottage Grove. So with that um that was it from my comments. Anything else council? >> All right to adjourn. >> All right. Yeah, we don't have any workshops open to the public or closed to the public. So I have a motion to adjurnn by council member Olsen. >> Second. >> Second by council member Thei. All those in favor signify by saying I. I opposed. We are adjourned. Thank you.