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111008 CC Reg MinCITY OF SHOREWOOD CITY COUNCIL REGULAR MEETING MONDAY, NOVEMBER 10, 2008 MINUTES 1. CONVENE CITY COUNCIL REGULAR MEETING 5735 COUNTRY CLUB ROAD SOUTHSHORE CENTER 7:00 P.M. Mayor Lizee called the meeting to order at 7:05 P.M. A. Roll Call Present. Mayor Lizee; Councihnembers Bailey, Turgeon, Wellens and Woodruff; Attorney Keane; City Administrator Heck; Finance Director Burton; Director of Public Works Brown; and Engineer Landini Absent: None Mayor Lizee stated that the voter turnout in Shorewood was 90 percent, better than the national average. There were 4,959 people who voted in the City and 588 of those voters registered on Election Day. There were five precincts and 69 election judges. On behalf of the Council she thanked Deputy Clerk Panchyshyn for her efforts in coordinating election activities and training the election judges, noting the tremendous amount of time it took to do so. She also thanked all of the election judges. Lizee noted that the ballots were secured at the South Lake Minnetonka Police Department. B. Review Agenda Councilmember Woodruff requested an update on the Safe Route to School grant be added to the agenda under Item 7, Parks. He also asked that Item 9.F, Forming an Investment Committee, be added to the agenda. Wellens moved, Woodruff seconded, approving the agenda amended. Motion passed 5/0. 2. APPROVAL OF MINUTES A. City Council Work Session Minutes, October 27, 2008 Wellens moved, Woodruff seconded, Approving the City Council Work Session Minutes of October 27, 2008, as presented. Motion passed 5/0. B. City Council Regular Meeting Minutes, October 27, 2008 Turgeon moved, Woodruff seconded, Approving the City Council Work Session Minutes of October 27, 2008, as amended in Item 9.C, Page 12, Paragraph 1, Sentence 5, change "training for his direct reports" to "training for Heck's direct reports". Motion passed 5/0. C. Canvassing Board Meeting Minutes, November 5, 2008 SHOREWOOD CITY COUNCIL REGULAR MEETING MINUTES November 10, 2008 Page 2 of 15 Woodruff moved, Turgeon seconded, Approving the Canvassing Board Meeting Minutes of November 5, 2008, as presented. Motion passed 5/0. D. City Council Special Meeting Minutes, November 5, 2008 Turgeon moved, Woodruff seconded, Approving the City Council Special Meeting Minutes of November 5, 2008, as presented. Motion passed 5/0. 3. CONSENT AGENDA Mayor Lizee reviewed the items on the Consent Agenda. She noted under verified claims check #47485 for an amount of $13,232.60 for the City of Excelsior was added; the check was for water connection usages. A. Approval of the Verified Claims List B. Approval of Pay Request #2 for City Hall project in the amount of $122,663 C. Authorize Expenditure of Funds Speed Advisory Trailer (This item was moved to Item 10.B under Engineering/Public Works.) Motion passed 5/0. 4. MATTERS FROM THE FLOOR There were no matters from the floor presented this evening. 5. REPORTS AND PRESENTATIONS None. 6. PUBLIC HEARING None. 7. PARKS With regard to Councilmember Woodruff s request to receive an update on the Safe Route to School (SRTS) grant, Mayor Lizee stated at the October 27, 2008, Council meeting Staff discussed the possibility of the City applying for a SRTS grant for the purchase a radar speed sign (a non-infrastructure project) that would be placed in the Minnewashta Elementary School zone. Staff and Council also discussed there was an infrastructure component to the grant, and that the Park Commission had discussed the possibility of pursuing that component to use toward constructing a trail from Country Club Road to Eureka Road along Smithtown Road. She noted that the Sun Sailor incorrectly printed an article which implied that Council had decided to pursue constructing a trail and she wanted to clarify that is not the case at this time. She noted Council did di-•ect Staff to prepare a grant application for the non- infrastructure portion of the SRTS grant. SHOREWOOD CITY COUNCIL REGULAR MEETING MINUTES November 10, 2008 Page 3 of 15 Coumcilmember Woodruff suggested Staff schedule a joint City Council and Park Commission meeting to provide the Councilmembers and Commissioners an overview of the 2000 evaluation done on constructing a trail on Smithtown Road. Mayor Lizee suggested the meeting be scheduled for the beginning of 2009, to which Woodruff agreed. 8. PLANNING Commissioner Gniffke stated there had not been a Planning Meeting since the last regular Council meeting. The Planning Commission meeting scheduled for November 4, 2008, was cancelled because it was Election Day. The next meeting is scheduled for November 18, 2008. 9. GENERAL/NEW BUSINESS A. MetroCities Legislative Policies Administrator Heck stated the MetroCities /League of Minnesota Cities' regional meeting is scheduled for November 20, 2008. He explained as part of that meeting member cities will have the opportunity to vote on the adoption of various MetroCities policy statements or to request amendments to the policies. He noted each city has one vote independent of size. He stated he will attend the Metropolitan Managers meeting which will be held prior to the MetroCities meeting, and he stated elected officials can attend that meeting. He commented that Councilmember Woodruff had served on the Revenue and Taxation Committee and the Transportation and General Government Committee. Councilmember Woodruff clarified he was not on the Transportation Committee. Woodruff moved, Turgeon seconded, authorizing Administrator Heck to serve as the City's voting delegate at the MetroCities /League of Minnesota Cities regional meeting and to vote to adopt the Metro/Cities policies. Motion passed 5/0. B. Approval of Certification of Delinquent Utility Charges Director Burton explained the City Code provides for annual certification of delinquent utility bills against the properties serviced. The City's authority for certification of unpaid charges comes from Minnesota Statute 444.075. This resolution authorizing the certification is considered and passed annually. Each property owner is given an opportunity to file a written objection to this proposed certification of delinquent accounts, and they can request a hearing in front of the Council to explain why the account has not been paid. She noted the City has received a written objection, which was included in the meeting packet, and a request for a hearing from Ron Johnson, 5335 Shady Hills Circle. She stated she did not think Mr. Johnson was in attendance this evening. Councilmember Turgeon stated it was her understanding Mr. Johnson Ilad requested copies of his past utility bills and she questioned if Staff complied with that request. Director Burton explained Mr. Johnson was requesting information dating as far back as 1994, and the City has information dating four to five years back on its financial system. Administrator Heck explained as part of the data privacy act people can come and look at public information on site. If there is a request to assemble data and copy data, then the City is authorized under State Statute to charge for the cost to do so. Staff has yet to prepare an estimate of what it would cost to provide Mr. Johnson with copies of the data he has requested. SHOREWOOD CITY COUNCIL REGULAR MEETING MINUTES November 10, 2008 Page 4 of 15 Wellens moved, Turgeon seconded, Adopting RESOLUTION NO 08-078, "A Resolution Directing Delinquent Sewer Charges, Storm Water Utility Charges, Water Charges, Recycling Charges, and Dry Hydrant Charges, be Placed on the 2009 Property Tax Rolls." Motion passed 5/0. C. Authorize Sale of Tax-Forfeited Land to Adjoining Landowners Administrator Heck stated the Hennepin County Taxpayer Services forwarded to the City a notice of tax forfeiture for a parcel of land located on the west side of Howard's Point Road, between the lots located at 5440 and 5460 Howard's Point Road. The property was previously owned by the owners of the 5525 Howard's Point Road property, and when those owners sold that property they retained ownership of the subject property. He explained the property contains approximately 3687 square feet of area. The City has three options for disposing of tax forfeited property: 1) the City can keep the property for a legitimate purpose (e.g. right-of--way, conservation or recreation open space, etc.); 2) the City can approve the parcel for public auction; or 3) the City can approve the property for auction to adjacent property owners (both of the abutting properties are nonconforming). Staff recommends the parcel be approved for auction to adjoining owners. The size of the properly makes it unusable for a public purpose, and it makes no sense for someone other than an abutting property (i.e., the property to the south) to own it. He noted that because the property has frontage on a lake the Department of Natural Resources would get first chance to acquire the property. In response to a question from Councihnember Bailey, Administrator Heck stated in Pine County the minimum auction price is the value of the property. Attorney Keane explained the minimum auction price would be the delinquent value (i.e., the accrued unpaid taxes, assessments and penalties). Councihnember Woodruff stated the property has no value to the City other than recovering taxes owed the City. The minimum price should be what the City is owed. He thought it would be better to receive income from a taxable piece of property. Councilmember Bailey stated he did not want to subsidize the purchase of property at a fire sale price. If the City were trying to purchase property it would have to pay the going rate for the property. If the adjacent property owners wanted to purchase the property they should have to pay the market rate. It was noted that the property is currently owned by Hennepin County, not the City. Councilmember Woodruff suggested Staff be directed to find out what the market value of the property is and what the delinquent value of the property is. At its next meeting Council could then make an informed decision of what the minimum auction price should be. Mayor Lizee stated because the property is not buildable it would be difficult to determine a fair market price. Administrator Heck stated it was his recollection the property has an assessed value of $50,000. He explained because it is the County's auction the City cannot assign a minimum price. The purchaser of the property would have to pay the accrued unpaid taxes, assessments and penalties and the City would receive a portion of those taxes. Councilmember Bailey stated that the City does have and does maintain fire access lanes which the public can use to access the Lake Minnetonka, noting access could not be done in a motorized vehicle. SHOREWOOD CITY COUNCIL REGULAR MEETING MINUTES November 10, 2008 Page 5 of 15 Wellens moved, Woodruff seconded, adopting "A Resolution Concerning a Certain Tax-Forfeited Parcel Lying Within the City and Approving it for Sale to an Abutting Owner." Councilmember Turgeon stated the City has experienced problem with owners of properties abutting existing fire lanes encroaching on the fire lane. Councilmember Bailey suggested the minimum auction price be equivalent to the market price if possible, and if abutting property owners don't want to pay that price than the City should acquire the property for public use. Attorney Keane stated if Council is unsure if the property could be put to public use, it could decide to take ownership of the property now and if, at a later date, it decides it is surplus property the City could sell it for a price it thought appropriate consistent with State law. Councilmember Woodruff questioned if the City would have to pay the delinquent taxes if it took ownership. Attorney Keane stated he would research that. Councilmember Woodruff stated he thought the Council needed more information before it made a decision. The seconder of the motion withdrew his second. Motion failed for lack of a second. Bailey moved, Wellens seconded, continuing this item to the November 24, 2008, City Council regular meeting and directing Staff to explore options for establishing a price for the tax forfeited parcel, researching what the delinquent taxes, assessments and penalties are and whether or not the City would be responsible to pay those items if it acquired the property. Motion passed 5/0. D. Staff Recognition Awards Administrator Heck stated at its October 27, 2008, meeting Council approved holding an employee and volunteer appreciation event on December 5, 2008, and it directed Staff to revise the years-of-service award proposal. He reviewed two revised award options proposed by the staff committee. Years of Service Certificate Option A Award 5 $ 50 gift card 10 Yes $100 gift card 15 Yes $100 gift card 20 Yes $200 gift card 25 Yes 30 Yes $200 gift card 3 5 Yes 40 Yes $200 gift card Option B Award $ 25 gift card $ 50 gift card $ 75 gift card $100 gift card $125 gift card $150 gift card $175 gift card $200 gift ca-•d Heck stated he recommends Council adopt the Option B award proposal. SHOREWOOD CITY COUNCIL REGULAR MEETING MINUTES November 10, 2008 Page 6 of 15 Councilmember Turgeon suggested the award certificate be added for five years of service. Councilmember Woodruff agreed.. Turgeon moved, Woodruff seconded, adopting the Option Byears-of-service award schedule and authorizing appropriate funds to provide the awards in 2008 and including the necessary funds for the awards in the 2009 General Fund Budget. Motion passed 5/0. Mayor Lizee thanked the committee for its efforts. E. City Requested Special Facilities Surcharge (CRFS) Administrator Heck stated it is his understanding that as part of the County Road l9/Smithtown Road/Country Club Road Intersection Improvement Project the overhead utilities were relocated underground. As part of the process the City adopted a resolution to charge back its portion of the cost for undergrounding to the residents under what is called a City Requested Special Facilities Surcharge (CFRS). The rates were based on rates provided by Xcel Energy. The rate started at $1.25 for regular residential use and was increased for different uses, and the CFRS would be collected for a period of 22.11. months. Recently Xcel Energy notified the City that the $1.25 rate does not conform to the Tariff filed with the Minnesota Public Utilities Commission. The Tariff does not allow for a CFRS over $1.00 for residential customers for a collection period of less than 36 -nonths. Therefore, the schedule has been revised such that all related surcharges were lowered and the collection period was extended to 28.10 months. He noted the draft resolution is the same as the one passed in July with the exception of the schedule change. He stated collection of the CFRS has not yet started. Councilmember Turgeon questioned if the City is still collecting a surcharge for work done on Smithtown Road. Director Brown stated he thought that surcharge had reached maturity. He noted the City has received payment from Hennepin County for its share of the undergrounding cost. Turgeon then questioned if the project was fully co-npleted. Brown stated Staff has had numerous conversations with various Hennepin County representatives regarding the City's desire to have the project closed. He explained Attorney Keane has prepared an action plan for the City to pursue to have the project closed should Administrator Heck not be able to convince the County to close the project. Turgeon moved, Woodruff seconded, Adopting RESOLUTION NO. 08-079, "A Resolution Authorizing a Monthly Surcharge to Xcel Energy Ratepayers in Shorewood for the Placement of its Facilities Underground for the County Road 19/Smithtown Road/Country Club Road Intersection Improvement Project." Motion passed 5/0. F. Selection of City Attorney Administrator Heck stated per Council's direction Staff prepared a Request for Proposal (RFP) for legal services. The City sent out eleven proposals and received proposals from seven firms. During a November 5, 2008, City Council special meeting Council interviewed four firms recommended by Staff. The firms were LaVander Gillen and Miller, Malkerson Gilliland and Martin, Kennedy and Graven, and Campbell and Knutson. The majority of the Council recommended the appointment of Kennedy and Graven to provide legal services to the City effective January 1, 2009, with Mary Tietjen serving as the City Attorney. Mayor Lizee stated the city attorney serves at the pleasure of the Council. SHOREWOOD CITY COUNCIL REGULAR MEETING MINUTES November 10, 2008 Page 7 of 15 Lizee then stated Tim Keane, the current City Attorney, has a long history with the City. She thanked him for his efforts and talents. She stated Keane has worked for various councils, City staff and a growing population in Shorewood. His achievements are many. She has great appreciation for the relationships he has built with staff and councils, and for his dedication to the open process. The City works closely and in partnership with its sister Southlake cities, and Keane's work with the joint powers agreements in public safety and in building the Southshore Center brought shared vision and goals to fruition. Keane can be credited with bringing the phosphorous-free-fertilizer ban initiated in Shorewood to the State stage, along with building stronger partnerships with agencies such as the Minnehaha Creek Watershed District and the Metropolitan Council. She wished Keane good luck with his future endeavors. She stated she enjoyed. the opportunity to work with Keane. Woodruff moved, Wellens seconded, appointing Kennedy and Graven as the firm to provide legal services to Shorewood as described in the proposal and addendums, with Mary Tietjen serving as the City Attorney and that the appointment is effective January 1, 2009. Motion passed 5/0. G. Southshore Center Lease Administrator Heck stated 12 years ago the cities of Deephaven, Excelsior, Greenwood, Shorewood and Tonka Bay entered into a Cooperative Agreement for the creation and operation of the Southshore Center. The cities also entered into a lease agreement with the Friends of the Southshore Center to maintain and provide programs at the Center. A number of months ago the cities formed a committee to evaluate the operation of the Southshore Center and to identify a way to continue the operation of the Center and programs offered at the Center without continued financial support by the five member cities. Each city had one of its elected officials on the committee. The committee worked with the Friends to amend the member cities' lease with the Friends; a copy of the draft amended lease was included in the meeting packet. The amended lease clarifies responsibilities for insurance, maintenance and capital repairs and improvements. In summary, the Friends would maintain the facility and be responsible for programs offered with the help of its new partner Minnesota Community Education (MCE); the member cities would not be responsible for any financial support for those efforts. The member cities would be responsible for the viability of the facility and grounds. The committee also worked on an amendment to the Cooperative Agreement, and that amendment will be considered at a firture Council meeting. Councilmember Woodruff stated he wanted more clarification of responsibilities identified in the lease agreement. It is not clear to him who is responsible for what with regard to the facility. The additional clarification should help the member cities better understand what their financial obligations will be. The draft lease does separate day-to-day operation and maintenance of the facility and programming services from long-term care and maintenance of the facility and grounds. Councilmember Turgeon stated she also thought there needed to be more clarity in the lease agreement. She expressed concern about approving an amendment to the lease prior to approving an amendment to the Cooperative Agreement. The Cooperative Agreement will specify what percent of the funding for a Capital account for the long-term care and maintenance of the facility each member city is responsible for. She explained MCE needs to have the amended lease approved in order to start planning for assisting with program services. She recommended the name of the Friends and the facility be made accurate in the amended lease. Mayor Lizee stated this is the third amendment to the lease. She explained item 6 iu the third amendment addresses repairs, maintenance and alterations; item 7 specifies the Friends will provide a $15,000 one- SHOREWOOD CITY COUNCIL REGULAR MEETING MINUTES November 10, 2008 Page 8 of 15 time contribution for initial funding of a capital account for the long-term care and maintenance of the facility. Councilmember Turgeon stated the responsibility for replacement of items in the facility needs to be clarified so the cities can budget accordingly. She also thought it is important for cities to lalow the cost for property and casualty insurance for the premises. She commented the City has provided snow plowing services for the Southshore Center parking lot and some modest maintenance services at no cost, and she questioned if that will continue in the future. She questioned if the facility was up to code, and if it wasn't what group is responsible for bringing it up to code. Mayor Lizee stated she assumed in order for someone to get a certificate of occupancy an inspection would have to be done to ensure the facility is up to code. Mayor Lizee stated the Friends and MCE need to have the lease amendment approved by year-end in order to have the Friends work with MCE in 2009 to provide program services. She suggested Council clearly identify its requirements. Cotmcilmember Turgeon stated if her concerns about lack of clarity are addressed she could support approving the amendment. She co~mnented the Friends have had sufficient time to address this issue, and the draft amendment was a good stat-t. Councilmember Bailey requested a requirement be added to the amendment to require the tenant to provide the member cities with financial reports (e.g., a year-end operating report and some type of pro forma for the upcoming year). Councilmember Turgeon commented that the Cooperative Agreement includes a requirement for financial reporting. Mayor Lizee stated the Friends provide financial reports annually, and anything more than that would be micromanaging and that was something the cities said they did not want to do. Councilmember Wellens stated the lease amendment changes responsibilities significantly. He asked Administrator Heck to comment on that. Heck explained in the original lease agreement the Friends were responsible for the long-term care and maintenance of the facility. The amendment places that responsibility with the cities because the cities jointly own the facility. The cities only obligation to the Center would be to establish a fund for the long-term care and maintenance of the facility and grounds. What the size of the fund should be has not been determined. The City's $23,000 contribution in 2007 was for program services and operating costs in 2008. Attorney Keane stated he served as the City Attorney in 1996 when the Cooperative Agreement was entered into and the member cities deliberately avoided addressing the issue of establishing capital reserves for the long-term care and maintenance of the facility. He then stated he thought it was appropriate for this issue to be addressed now as some of the major mechanical equipment in the facility has probably reached its half-life. Councilmember Wellens questioned why the Friends have to be involved if MCE will be responsible for program services. Mayor Lizee explained that the Friends will continue to provide some program services at the Center. Councilmember Wellens expressed concern about the requirement in the original lease where the cities would be responsible to pay for liabilty insurance if the tenant did not with the hope the tenant would reimburse the cities. Mayor Lizee explained that has always been in the lease and it has not been a problem, and there is a legal requirement to have insurance addressed in the lease. SHOREWOOD CITY COUNCIL REGULAR MEETING MINUTES November 10, 2008 Page 9 of 15 Councilmember Wellens questioned if the cities would share in any MCE profits. Mayor Lizee stated in the past the Friends have re-invested profits from programs provided or funds acquired through fiu~d raising efforts back into the Center. Councilmember Turgeon stated t}1e Friends paid for operational costs, and the Friends do not receive any money from fee-paid programs sponsored by for-profit organizations and held at the Center. In response to a comment from Administrator Heck, Turgeon stated in the past organizations did not pay for use of space at the Center. Councilmember Woodruff stated during his tenure on the Council the Friends have struggled financially, and he did not know to what degree because he has not received any financial statements from the Friends. He stated the original lease states the member cities are willing to lease the community facility for the cost of $1..00 per year. Per the third amendment the cities would also be responsible for long-term care and maintenance of the facility. What the tenant does with the facility, provided it is within the terms of the lease, is up to the tenant. He did not think the member cities should share in any profits made by the tenant, and based on the last few years there have not been any profits. He stated it was prudent for the cities to understand the financial obligation they would be committing to and who would be responsible for what. Clarity was Lacking in the lease amendment. Administrator Heck recapped what 11e heard. The co~mnittee needs to add more clarity to the amendment regarding the responsibilities of the tenant and the member cities with regard to repairs and maintenance, and to eventually identify what the projected costs will be for the long-term care and maintenance of the facility and the rate for establishing capital reserves. Councilmember Bailey stated he still wanted the Friends to provide profit and loss financial information and financial projections for 2009. The cities need to be assured the tenant (the Friends) was financially able to meet its financial obligations. Councilmember Woodruff stated he agreed with Bailey, and normally when a tenant enters into a lease arrangement they have to provide financial information. Woodruff then stated the Friends did provide a pro-forma prior to the City agreeing to the $23,000 contribution. He stated if need be the lease could be for a period of one year to allow time for further refinements to the lease amendment. Administrator Heck stated he would bring the request for more clarity back to the committee and he would ask Tom Anderson, President of the Friends, to prepare apro-forma. He then stated MCE needs to have some long-term assurance (more than one year) that the facility will be available for them to provide program services as it prepares its program catalogue well in advance. In response to a question from Councilmember Turgeon, Mayor Lizee explained the Friends Board was scheduled to meeting on November 3`d and she assumed they discussed and approved the lease amendment. There was consensus to continue this item to the November 24, 2008, Council meeting. H. Forming an Investment Committee Councilmember Woodruff stated Director Burton had recently prepared and distributed the first quarterly investment report for the City's investments in accordance with the City's investment policy which was revised in 2008. He is not sure the investment policy is appropriate in these troubling financial times. He suggested an investment committee be formed and the committee could meet shortly after the quarterly report was available to discuss the financial environment and the City's current investments. He SHOREWOOD CITY COUNCIL REGULAR MEETING MINUTES November 10, 2008 Page 10 of 15 suggested the committee be comprised of two Councihnembers, the Finance Director and the City Administrator. He also suggested after meeting two quarterly meetings the committee could then meet semi-annually. Woodruff moved, Wellens seconded, approving the formation of an investment committee comprised of two Councihnembers, the Finance Director and the City Administrator to meet quarterly at first and to report back to Council after the meetings. Mayor Lizee stated she had no issue with establishing a committee. She would prefer it be considered after Administrator Heck and Director Burton have had adequate time to provide input about it. She suggested the creation of this committee be discussed. in early 2009. Coimcihnember Bailey stated it was not unusual to have staff manage the investments with some fiduciary to review investment results in a less public setting. That would be sound oversight. Councilmember Woodruff stated the benefit of discussing the report soon was the information is relatively new and there is an opportunity to modify the investment strategy based on the financial market. He recommended the review occur this month. Councilmember Turgeon stated she assumed during the first few meetings the committee would establish what its objectives were. She could support establishing the committee soon. Administrator Heck clarified before the committee can be established the investment policy must be amended. The current policy delegates responsibility for managing the investments to the Finance Director and the City Administrator with no mention of an oversight committee. Councilmember Bailey clarified he did not think the committee would have anything to do with managing the investments; it would have oversight responsibilities only. Administrator Heck stated the policy still would have to be amended to reference oversight responsibilities. Heck questioned if Council thought there was a problem with the City's investment situation. Councilmember Bailey stated he did not know, but the formation of the committee has nothing to do with concern over how the investments are currently managed. Director Burton stated she would be comfortable with establishing an oversight committee that met on a quarterly basis. If there was a desire to have the committee have input into managing the investments on a day-to-day basis could prove to be problematic from a timing perspective. She stated many counties and some cities had formed investment committees, and they typically disbanded the committees because of the desire for day-to-day involvement. If the investment policy were to be amended she suggested it also be amended to reflect the current $250,000 FDIC maximum coverage. Without objection from the seconder, the maker of the motion withdrew the motion. Woodruff moved, Wellens seconded, directing Staff to draft an amendment to the City's investment policy which authorizes the formation of a formal oversight investment committee comprised of two Councihnembers, the Finance Director and the City Administrator. Councilmember Wellens expressed concern that the Cities' elected officials could be specifying what the City should invest in. He questioned who the Council would hold responsible for a bad investment SHOREWOOD CITY COUNCIL REGULAR MEETING MINUTES November 10, 2008 Page I 1 of 15 strategy. He thought it would cloud accountability and responsibility. Councihnember Bailey stated the investment committee would not provide any direction in terms of even broad inveshnent policies let alone investments; that is a Council responsibility. opporttmity to have a more detailed discussion about Council on general observations. Motion passed 5/0. 10. ENGINEERING/PUBLIC WORKS The committee meetings would provide the investment performance and report back to the A. Private use of Public Draintile for 5635 Fairway Drive Engineer Landini stated at its June 25, 2008, meeting Council granted the residents of 5635 Fairway Drive permission to install a sump pump discharge in a public easement located at 5655 Fairway Drive. The property owners did not install that discharge and are now requesting the authority to connect the sump pump discharge to the draintile in Fairway Drive; Staff recommended this option in 2007 to the property owner. Landini reviewed factors to consider for the request. 1. The goal of Country Club Meadows development was to direct runoff and sump pump discharge to the south. 2. The City has asked the resident not to direct the sump pump discharge to the north due to a drainage complaint. 3. Discharging the sump pump pipe to the draintile benefits the residents of 5645 Fairway Drive, the City, and 5655 Fairway Drive. 4. Mr. Putnam and Ms. Gallagher have requested this use. Landini stated Staff recommends approval of a resolution authorizing a license agreement with Chris Putnam and Eva Gallagher. Landini noted Mr. Putnam was present this evening. Chris Putnam, 5635 Fairway Drive, stated he no issue with the concept proposed but he asked for clarification on the license agreement. Engineer Landini explained the license agreement is a requirement of the City Ordinance, and he lead not had the opportunity the previous week to mail Mr. Putnam the packet for his request but he did email it to him that morning. Mr. Putnam stated l1e had not reviewed the license agreement. Mr. Putnam stated there were no conditions stipulated when he was given permission to install a sump pump discharge in a public easement at 5655 Fairway Drive in 2007. He expressed concerns the license agreement could specify conditions he had not had time to evaluate. In response to a question from Councilmember Woodruff, Engineer Landini stated Council was being asked to consider a request that was different than the one it granted in 2007 for the applicant. Director Brown stated a number of drainage issues were addressed as part of the plat of Fairway Drive. There was concern about water running to the north. A drainage easement was created across the rear of all of the properties in that area. The request in 2007 was to cross the drainage easement in order to reach the SHOREWOOD CITY COUNCIL REGULAR MEETING MINUTES November 10, 2008 Page 12 of 15 holding area. The City's standards now incorporate the need to incorporate draintile behind curbs to address sump pump discharges. Councilmember Woodruff stated this request is the same as one Council granted for a property owner on Strawberry Lane in 2007. Woodruff moved, Turgeon seconded, Adopting RESOLUTION NO. 08-080, "A Resolution Authorizing Mayor or City Administrator to Execute a License to Allow Draintile Connection in Fairway Drive Right-of--Way for Chris Putnam and Eva Gallagher." Mr. Putnam stated the resolution adopted in 2007 was straight forward; it did not include the same legal conditions as are included in this license agreement. Condition 2 states "the landowner agrees to hold the City harmless from any claim of damage against the City arising out of the draintile connection." He assumed it was not Council's intent to hold the City harmless for its negligent performance. He would appreciate the opportunity to connect to the drain the system, and he thought that solution would be beneficial to him, the City and to the adjacent landowner. He hoped the license agreement could be negotiated separately to allow the agreement to be modified to clarify that t11e City's intent with regard to holding the City harmless. In response to a comment by Councilmember Woodruff, Engineer Landini stated the license is the same as the one included as part of the resolution approved for the Strawberry Lane property. Councilmember Woodruff stated he understood condition 2 to say the City would not be responsible for any damage resulting from a backup into the landowner's sump pump system from the draintile system. Attorney Keane concurred. Mr. Putnam assumed condition 2 did not cover a situation where the City did maintenance in the vicinity of the connection and the City disrupts the connection because of its negligence and the disruption results in a claim by a third party. Councilmember Woodruff stated if the City had to perform maintenance requiring the connection be disrupted, the landowner would be responsible for reestablishing the connection. Mr. Putnam stated the language in the resolution was broad and he wanted to clarify the intent. Attorney Keane stated the language in the license agreement was broad because the City did not want to create any new liabilities for itself by granting Mr. Putnam use of its draintile. Mr. Putnam stated the resolution would benefit the City, himself and his neighbor. He interpreted the license to state the City wanted to transfer any and all risk, including risk caused by the City's negligence, to him. He wanted to insure the intent is not to absolve the City from damage cause by its negligence. Attorney Keane asked Mr. Putnam to provide an example for his concern. Mr. Putnam stated for example if the City disconnected the contention as part of maintenance and reestablished the connection negligently resulting in flooding of the area and someone then falls due to the presence of water. Engineer Landini stated Mr. Putnam still can still execute the option approved in 2007 to discharge his sump pump in the public easement. Mr. Putnam stated after reviewing the license agreement ]le is comfortable with it. He was just seeking clarification of the agreement and expressing his discomfort with how strict the conditions were SHOREWOOD CITY COUNCIL REGULAR MEETING MINUTES November 10, 2008 Page 13 of 15 compared to his agreement with the City in 2007. The sohrtion to connect to the draintile is a much simpler solution. Administrator Heck stated he understood Mr. Putnam's concern to be what he would be held liable for. He explained if the City had to disconnect the comlection to the draintile, Mr. Putnam would have to reestablish that connection. Therefore, if there is a problem with the connection resulting in the sump pump backing up that would be Mr. Putnam's problem. Attorney Keane stated he does not recommend the Council negotiate license agreements. Mr. Putnam can ask for additional clarification if he so chooses. Mr. Putnam stated he was comfortable with the explanations he heard this evening. Motion passed 5/0. B. Authorize Expenditure of Funds Speed Advisory Trailer This item was removed from the consent agenda at Councilmember Bailey's request Com~cilmember Bailey requested clarification on the intended use of the speed awareness display. He questioned how locations for use are selected and how often is it used. Director Brown stated the display will begin to be used as soon as the snow melts. He explained that over one year ago the City transferred transport and setup responsibilities to the South Lake Minnetonka Police Department (SLMPD) because of the time commitment to do that work. The transfer of responsibilities occurred after the expansion of the SLMPD Community Service Officer (CSO) program went into effect. All requests for the display are directed to SLMPD Community Service Supervisor Hohertz. Hohertz schedules the use and tracks the usage. The existing nonfunctioning display could be used for up to three consecutive days if the days were sunny, while the proposed unit should be able to be kept at a location for up to a week because it will have a better power supply. He noted the display is not kept at a location over a weekend to protect it from vandalism. Councilmember Bailey asked what process was in place for residents to request the display be sett~p at a particular location. For example, is it published in the Shore Report? Director Brown stated it can be published in the newsletter. He explained typically there are more requests for the display than can be accommodated because of time. If the City receives a complaint about speed he primarily directs residents toward the display. Bailey recommended something be published in the newsletter. Councilmember Turgeon questioned if the display is rotated through different locations in the City, and also if it was randomly placed at a location. Director Brown stated because requests exceed the available time there are/will be residents who will be disappointed because their request was not fulfilled. Director Brown stated the 2008 Equipment Replacement Fund within the CIP has $20,000 allocated for the replacement of the display. The low quote for a new display is $9,609, excluding tax, from Kustom Signals, Inc. Administrator Heck stated he has spoken with Excelsior City Manager Luger and Tonka Bay Administrator Loftus about sharing the cost and the use of the display. He explained the newer displays SHOREWOOD CITY COUNCIL REGULAR MEETING MINUTES November 10, 2008 Page 14 of 15 track more data than in the past. Councilmember Bailey questioned if the City would have to pay 50 percent of the cost and only be able to use itone-fourth of the time. Mayor Lizee stated shared use can be discussed at a firture date. Woodruff moved, Bailey seconded, authorizing the expenditure of funds from the Equipment Replacement Fund for the Speed Awareness Display from Kustom Signals for an amount not to exceed $9,609 plus sales tax. Councilmember Woodruff stated that although sharing the use of the display sounds like it would be a nice idea, based on Director Brown's comments it appears the City can keep the display in use all by itself. If that is the case maybe the other cities should consider buying one together. He did not want the use of the display by other cities to reduce the City's ability to fulfill requests it receives. Motion passed 5/0. 11. STAFF AND COUNCIL REPORTS A. Administrator & Staff 1. City Hall Construction Update Administrator Heck provided an update on the City Hall renovation. The roof trusses were going up, walls were up and most of the decorative material on the existing front of the building was installed. Windows should be arriving within the next 2 - 3 weeks. There was meeting regarding hardware needs on November 7`~' and those needs were identified. The process of pumping water out of the north end of the facility was continuing to ready that area for the concrete floor installation. He noted Bill Wolters was doing an excellent job as a task master for the project. Other Staff Reports Director Brown stated the lettering on the SE Area Water Tower is in the process of being put on. Weather permitting, the painting and coating tasks should be should be completed in the next few days. The clean-up process can then be started. He noted it will take approximately three weeks for the coating system on the interior of the tower to cure. Before the tower is filled with water tests will be run to insure everything is cured. B. Mayor & City Council Councilmember Turgeon asked Administrator Heck if he was going to be part of the SLMPD contract negotiating team. Heck stated that will be discussed at the SLMPD Coordinating meeting scheduled for November 18`x'. Turgeon asked if the request will be made to the Committee, to which Heck and Mayor Lizee responded the topic would be discussed. Councilmember Wellens stated he received an email earlier in the day from Staff which contained a virus, and he questioned how the costs for repairing his computer should be handled. Director Burton stated the City has a number of virus protection tools installed on its network, and she was both surprised and dismayed that this had occurred. Burton stated the City's computer consultant will look into the matter. SHOREWOOD CITY COUNCIL REGULAR MEETING MINUTES November 10, 2008 Page 15 of IS Councilmember Bailey stated he appreciated Director Burton preparing a revenue and expenditure report. He explained Council and Staff had discussed calendarizing the report for the upcoming year. That type of reporting will provide the ability for Council to be more proactive in managing variations against budget. For example, the City receives tax payments semi-annually and prior to receipt of those payments the expense and revenue report shows revenues behind budget. Burton stated she assumed Councilmember Elect Zerby would likely want to have some input on the format of the report, just like the current Councihnembers had. Councilmember Woodruff suggested that type of reporting be started and the report format can be refined at a later date. Mayor Lizee stated SLMPD Officer Jim Williams was promoted to the position of patrol sergeant effective November 4`~'; he assumed the position vacated by Sgt. Mark Erickson who retired in August after 30 years of service. There is a community open house scheduled from 7:00 P.M. - 9:00 P.M. on November 13`i' at the Freshwater Institute regarding the County Road 19 trail feasibility study. A second meeting on the topic will be held from 5:00 P.M. - 8:00 P.M. on December 3`d with the location yet to be identified. She reminded people that from 10:00 A.M. -Noon on November I5`~' the Excelsior Fire Department, the South Lake Mim~etonka Police Department and the South Tonka League of Women Voters are hosting an Emergency Preparedness Seminar for residents at the Public Safety Facility in Shorewood. 12. ADJOURN Wellens moved, Turgeon seconded, Adjourning the City Council Regular Meeting of November 10, 2008, at 9:03 P.M. Motion passed 5/0. RESPECTFULLY SUBMITTED, Christine Freeman, Recorder 4 .~-~ Christine Lizee, Mayor ATTEST: /~ r i ...- :~ ,.~Srian I-~ecl., Lty Ad inistrator/Clerk