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08-12-13 CC Reg Mtg AgendaP H. G. F. E. D. C. B. A. CITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD CITY COUNCIL REGULAR MEETING COUNCIL CHAMBERS MONDAY, AUGUST 12, 2013 7:00 P.M. AGENDA Attachments 1. CONVENE CITY COUNCIL MEETING A. Roll Call Mayor Zerby___ Hotvet ___ Siakel ___ Sundberg ___ Woodruff ___ B. Review Agenda 2. APPROVAL OF MINUTES A. City Council Work Session Meeting Minutes, July 22, 2013 Minutes B. City Council Regular Meeting Minutes, July 22, 2013 Minutes 3. CONSENT AGENDA - Motion to approve items on Consent Agenda & Adopt Resolutions Therein: NOTE: Give the public an opportunity to request an item be removed from the Consent Agenda. Comments can be taken or questions asked following removal from Consent Agenda A. Approval of the Verified Claims List Claims List B. Adopt the Codification of the Ordinances Approved in 2012 Clerk’s memo, Ordinance, Res. C. Authorizing Approval of Lease Agreement A-131264 between the City of Clerk’s memo, Shorewood and Hennepin County for Election Equipment Resolution D. Recording Secretary Agreement City Administrator’s memo 4. MATTERS FROM THE FLOOR (No Council action will be taken) 5. PUBLIC HEARING 6. REPORTS AND PRESENTATIONS A. South Lake Minnetonka Police Department 2014 Budget Presentation by Chief Litsey’s Police Chief Bryan Litsey memo, Budget CITY COUNCIL REGULAR MEETING AGENDA – AUGUST 12, 2013 Page 2 of 2 Attachments 7. PARKS A. Badger Park Plan Planning Director’s memo B. Movie in the Park Promotion Planning Director’s memo 8. PLANNING A. Report on August 6, 2013 Planning Commission meeting 9. ENGINEERING/PUBLIC WORKS A. Accept Plans and Authorize Advertisement for Bids for the 2013 Engineer’s memo, Bituminous Mill and Overlay, City Project 13-05 Resolution B. Approve Plans and Specifications and Authorize Advertisement for Bids Engineer’s memo, for Valleywood Lane and Valleywood Circle Roadway Improvements, City Resolution Project 13-01 C. Change Order Request for County Road 19 Sidewalk, City Project 12-01 Engineer’s memo, Resolution 10. GENERAL/NEW BUSINESS A. Letter from Resident Regarding Wild Turkeys Resident Letter 11. OLD BUSINESS 12. STAFF AND COUNCIL REPORTS A. Administrator and Staff 1. Quarterly Investment Report Finance Director’s memo 2. Southshore Center Advisory Committee 3. Update on 5795 Country Club Road 4. Update on Trail Projects B. Mayor and City Council 13. ADJOURN CITY OF SHOREWOOD  5755 Country Club Road Shorewood, Minnesota 55331 952-960-7900  Fax: 952-474-0128 www.ci.shorewood.mn.us cityhall@ci.shorewood.mn.us Executive Summary Shorewood City Council Regular Meeting Monday, 12 August, 2013 7:00 p.m. 6:00 PM – City Council Work Session 8:00 PM or immediately following Regular Council meeting – EDA Meeting Agenda Item #3A: Enclosed is the Verified Claims List for Council approval. Agenda Item #3B: This item is approval of the eighth supplement (S-8) to the City Code Book, which includes all Ordinances passed in 2012 (No’s. 489-499). American Legal Publishing has provided the replacement pages to the City Code Book for this supplement. Council action includes Adoption of an Ordinance to enact and adopt the Supplement to the Shorewood City Code Book, and Adoption of a Resolution approving a summary publication of said Ordinance. Agenda Item #3C: Hennepin County has purchased new digital scan precinct counters, Model DS200, for use in all elections throughout the county. A new lease agreement is provided for approval which includes this new equipment, as well as the existing AutoMARK Voter Assist Terminates, and all related hardware and services. The maintenance fees are similar as past years. Approval of a resolution authorizing the Mayor and City Administrator to execute Lease Agreement No. A-131264 between Hennepin County and the City of Shorewood is recommended. Agenda Item #3D: Independent ContractorChristine Freeman has served as Recording Secretary for the City Council and Planning Commission meetings since November, 2005. She has requested one rate increase since that time, making this the second rate increase proposed by Ms. Freeman. Her proposed rates are in line with what she charges her other clients. The change in the fee structure results in an average increase of approximately $28 per meeting for meetings held to date in 2013. Staff allocated sufficient funds in the 2013 Budget for Recording Secretary Services in anticipation of a rate increase for this service in 2013, and recommends approval of the Agreement. Agenda Item #5: There are no public hearings this evening. Agenda Item #6A: Police Chief Bryan Litsey will provide a presentation on the South Lake Minnetonka Police Department 2014 Budget. Executive Summary – City Council Meeting of August 12, 2013 Page 2 of 2 Agenda Item #7A: The Park Commission has re-examined the master plan for Badger Park in the interest of scaling down the cost of proposed improvements. There was consensus between the Commission and Council on a number of issues related to the current plan. Staff is providing concept sketches for the park in hopes of reducing the projected costs of improvements under the current plan. Agenda Item #7B: The owner of Joey Nova’s restaurant proposed to advertise the Music in the Park event by placing an advertising post-it note on the pizza boxes being delivered two to three weeks prior to the event. The Park Commission recommended moving forward with printing the post-it notes, at a cost of $16 for 400 or $80 for 2000. Approximately 1000 pizza boxes are delivered a week. Agenda Item #8A: A representative will report on the August 6 Planning Commission meeting. Agenda Item #9A: Consideration of a resolution approving the plans, specifications and authorizing advertisement for bids for the bituminous mill and overlay of streets for 2013. Agenda Item #9B: Consideration of a resolution approving the plans, specifications and authorizing advertisement for bids for the Valleywood Lane/Valleywood Circle roadway improvements, City Project 13-01. Agenda Item #9C: Consideration of a resolution approving change order No. 1 in the amount of $14,004.96, increasing the County Road 19 Sidewalk construction contract amount to $68,301.06. The city received a 25% cost reimbursement grant from Hennepin County, not to exceed $18,000, for this project. Agenda Item #10A: Planning Director Nielsen will report on this item at the meeting. The resident letter is included in the packet regarding wild turkeys. Agenda Item #11: There are no items of Old Business this evening. Agenda Items #12A: Several Staff reports will be provided. Agenda Items #12B: Mayor and City Council Members may report on recent activities. #2A CITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD CITY COUNCIL WORK SESSION COUNCIL CHAMBERS MONDAY, JULY 22, 2013 6:00 P.M. MINUTES 1. CONVENE CITY COUNCIL WORK SESSION Mayor Zerby called the meeting to order at 6:02 P.M. A. Roll Call Present: Mayor Zerby; Councilmembers Hotvet, Siakel, Sundberg (arrived at 6:03 P.M.), and Woodruff; Administrator Joynes; City Clerk Panchyshyn; Finance Director DeJong; Planning Director Nielsen; Director of Public Works Brown; and City Engineer Hornby Absent: None B. Review Agenda Hotvet moved, Woodruff seconded, approving the agenda as presented. Motion passed 4/0. 2. 2014 BUDGET – GENERAL FUNDS DEPARTMENTS DISCUSSION Mayor Zerby noted the meeting packet contains a copy of a budget overview memorandum from Administrator Joynes and Director DeJong as well as copies of the draft 2014 General Fund Budget and the department budgets. Administrator Joynes explained the City’s tax increase from 2009 – 2013 has been relatively flat. The total levy increase was $59,951 (a 1.27 percent increase over five years with an average increase of 0.25 percent). There was no increase the last three years while expenditures continued to increase. The General Fund Budget was balanced by cost reductions, transfers into the General Fund from other funding sources (e.g., cellular antennae revenue was used in 2014 to help balance the budget), and through the use of General Fund reserves. In 2013 the City used $102,848 of reserves. For a number of years the balance in the General Fund had exceeded the level set in the City’s General Fund Balance Policy. During the Council and staff retreat in March 2013 there was discussion about how to approach the 2014 General Fund Budget with a full understanding that there were deficiencies in some of the other funds when projected out over the next eight years. There was general consensus to do the following: 1) increase the levy by 1.5 – 2.0 percent to stabilize the level of General Fund reserves at the adopted Policy level of 55 – 60 percent (that is not an issue for 2014 but will become an issue in subsequent years as transfers are made out of the reserves); 2) conduct rate studies for at least some of the City’s Enterprise Operations (recycling, sewer, stormwater management and water) to determine what rates are necessary to maintain the needed balance in each of the Enterprise Funds; 3) sell the City-owned property located at 5795 Country Club Road (preparation for that is in progress) and apply the proceeds to the fund that Council deems appropriate (it’s estimated that after everything is charged out the proceeds would be about $250,000); 4) revisit assumptions in the Capital Improvement Program (CIP) with particular focus on the Park CIP improvements at Badger Park; and, 5) the potential use of Water Fund reserves. The State Legislature has imposed a levy limit of 3 percent for 2014 for municipalities with populations over 2,500. A 3 percent levy increase for the City over the 2013 levy would mean an additional $142,299 CITY OF SHOREWOOD WORK SESSION MEETING MINUTES July 22, 2013 Page 2 of 6 in tax revenue. There are exceptions to the levy limit. The City generally includes debt levies in its general levy; state law allows those to be separated out. For the City that means it has an additional allowable levy amount of $645,950 (a 13.6 percent levy increase above the 3 percent), available ($103,950 for City Hall; $245,000 for police; and $297,000 for fire). Therefore, the levy limit is not a limiting factor for the City. The assumption used for 2014 is there is a zero percent levy increase over 2013. The department budgets reflect the same staffing levels and the same service levels as in 2013. The draft 2014 General Fund Budget includes a salary and benefit reserve of $43,000 for non-union and union personnel. The City is currently in negotiations with AFSCME and non-union salaries have not been established. The South Lake Minnetonka Police Department (SLMPD) will be starting negotiations with the union representing the majority of its personnel. It has a salary reserve in its draft budget. Councilmember Siakel noted for 2014 it appears that the City’s portion of the municipal contribution to the Excelsior Fire District (EFD) for operations will actually decrease when compared to its 2013 contribution. Administrator Joynes stated that will be adjusted accordingly to be in sync with the most recent EFD 2014 draft budget documents. Councilmember Woodruff asked if the $45,000 budgeted for aquatic invasive species (AIS) watercraft inspections will be neutralized by offsetting revenues. Director DeJong noted the overview memorandum explains the 2014 General Fund Budget includes $22,500 in reimbursement revenue and $22,500 in grant revenue from the Minnehaha Creek Watershed District (MCWD). Administrator Joynes cautioned that continuation of that grant for future years will be up for discussion at the MCWD. Administrator Joynes noted that he has indications that one of the SLMPD member cities may not approve the SLMPD’s 2014 Operating Budget that was recommended by three of the four members of the SLMPD Coordinating Committee. The SLMPD 2014 Operating Budget was more controversial this year than in previous years. He then noted that SLMPD Chief Litsey will make a budget presentation to Council on August 12. He explained if all four member cities do not approve the SLMPD budget the SLMPD joint powers agreement (JPA) contains a default provision for addressing the budget. Woodruff stated in the recommended SLMPD 2014 Operating Budget there is an Undesignated Allocation expense line item of $34,000. Woodruff noted he does not like that and he would like that to be taken out. Mayor Zerby (the City’s representative to the SLMPD Coordinating Committee) stated he would explain that offline. Director DeJong explained that in 2012 the City subsidized the Southshore Community Center (SSCC) for an approximate amount of $60,000. For 2013 a subsidy of $47,700 was budgeted. The draft 2014 General Fund Budget includes a subsidy of $60,000. Administrator Joynes clarified that the SSCC would continue to operate the way it is based on what is budgeted for a subsidy. Administrator Joynes noted the newly formed Southshore Center Advisory Committee is scheduled to have its first meeting on July 23. Different options for operating the SSCC will be discussed during the meeting. Administrator Joynes explained $13,200 was budgeted for elections in 2014 for election judges and maintenance of election equipment. 2013 was not an election year. During the March retreat Council discussed increasing streets and equipment. The draft 2014 General Fund Budget reflects a $27,500 increase. It also discussed increasing the insurance deductible for municipal buildings; $10,000 was budgeted for that. The Administration Budget and City Engineer Budget decreased for a combined amount of approximately $28,000 for salaries. CITY OF SHOREWOOD WORK SESSION MEETING MINUTES July 22, 2013 Page 3 of 6 Joynes stated with the increases and decreases just talked about (plus smaller increases) and with a zero percent levy increase for 2014 a $262,804 budget gap remains to achieve a balanced budget. He reviewed some options to bridge the gap. Increase the levy by 1 percent ($47,433), by 2 percent (94,866), or by 3 percent ($142,299). Use $133,200 in General Fund reserves (no more than 3 percentage points of excess reserves can be transferred in one year per the City’s current Policy). Transfer administrative contributions (for staff time, building use and technology use) from the Enterprise Funds (conservatively $25,000) to the General Fund. Use the proceeds from the sale of the City-owned property ($250,000). Lastly, reduce services. He noted that as decisions to use General Fund reserves continue the balance will be reduced and it will need to be replenished at a rate of 2 percent annually based on what Council discussed during the March retreat. Joynes reviewed other influences Council needs to be aware of. If Council wants to have a full-time director to manage the SSCC operations with adequate support to run current programs and maybe add programs, it would cost about $150,000. The current 2014 budgeted subsidy of $60,000 would have to be increased to $150,000. Staff is preparing a wish list of technology improvements. They will be discussed during the CIP process. The City is speaking with a different health insurance broker this year - the one that deals with the Local Government Information System (LOGIS) Health Care Group - about changes in the law. Regardless of what the City choses to do about insurance it’s anticipated the City will incur a 4 – 8 percent increase for health insurance ($7,590 – $15,180) as a result of the Affordable Care Act. The City is classified as a small group employer; it has less than 50 employees. It cannot join together with another group. For next year there will be no pre-existing insurance factors impacting rates, but there will be an age factor. An effort is being made to factor that into the negotiations with AFSCME as early on as possible. A budget of $70,000 per year with a 5 percent increase each year for tree replacement for specific projects such as trail projects and for trees diseased by emerald ash borer will be discussed during the Council meeting immediately following this work session. There will be some CIP Funds (e.g., trails, equipment, and parks) that will enter into a deficit state during the next few years unless adjustments are made to what is transferred into them from the General Fund. The Equipment Replacement CIP will be reviewed to make sure the timeline for replacement of items is correct or if the schedule pushed too far out. Rate studies for the Enterprise Operations will help to identify how to stabilize the Enterprise Funds. There are excess funds in the Water Fund that could also be used to help stabilize funds. Administrator Joynes stated Council discussed increased regulations will likely be implemented for stormwater management activities during its March retreat. If the mandates are too onerous they will have a serious negative impact on the budgets going forward. Joynes then stated from his vantage point the longer term budget problem is a solvable problem. Based on decisions Council makes a big step in solving it can be taken for 2014. The process can be finished over the next 2 – 3 years. The City has the ability to generate revenue sufficient to support the level of services the residents of Shorewood have identified as what they would like to have in the resident survey. He noted that staff anticipates there will be more questions as the budget process continues forward. In response to a question from Councilmember Sundberg, Director DeJong explained the Support Services/Charges expense category in the department budgets are generally for contractual services purchased. For example, the Council Budget included $45,000 in fees for Volt Workforce Solutions for the inspectors at Christmas Lake. It was placed in the Council Budget because Council asked that work be done, but it could be moved to another budget. Most of the rest of the increase in that line item is for potential salary and health insurance increases for union personnel. The 2013 budget included a pool for salary increases for non-union personnel. Union increase amounts were known at the time the budget was prepared; therefore, they were factored into the appropriate department budget for 2013. CITY OF SHOREWOOD WORK SESSION MEETING MINUTES July 22, 2013 Page 4 of 6 Mayor Zerby stated for those items that are increasing substantially it would be helpful if Council was provided with some explanation for the increases in advance of the budget discussion. Councilmember Woodruff concurred. Councilmember Sundberg asked Director DeJong to explain the 781 percent increase in the City Engineer Support Services/Charges expense category. DeJong explained Contractual Services is the retainer with WSB & Associates for engineering services. The amount budgeted for engineering Contractual Services plus the pay-as-you-go engineer services is slightly more than the amount the City paid for Personal Services for a city engineer employee. Mayor Zerby noted that earlier there was a PowerPoint slide that showed an approximately $5,000 decrease in the City Engineer Budget. In response to a question from Councilmember Sundberg, Director DeJong explained the Cellular Antenna Revenue line item is the revenue the City gets for leasing out space on its water towers to cellular service providers. That used to go into the Water Fund. For 2013 Council changed it to go into the General Fund. In response to another question from Sundberg, DeJong explained the City Hall Rent line item used to be for rent for the City-owned property next to City Hall. Councilmember Woodruff asked if the draft 2014 General Fund Budget includes the salary increases given to non-union personnel for 2013. Director DeJong responded it does. The increases came out of the $21,000 contingency for 2013. It was allocated out to the department budgets. Woodruff then asked staff to explain Miscellaneous Revenue Dry Hydrant Charges. DeJong stated it’s his understanding that was for charges to the property owner for installing dry hydrants that would run into the lake for areas not served by City water for fire protection. Director Brown explained the charges were treated like an assessment about 18 years ago. Brown noted there was a sunset clause for that, but he is not sure if the sunset date was 15 or 20 years. In response to a question from Councilmember Woodruff, Director DeJong explained that in the Administration Budget there was a huge reduction in the Personal Services category and a relatively similar increase in Contractual Services because Administrator Joynes is not an employee. Councilmember Siakel asked if the Arctic Fever event costs the City $5,500. Director DeJong explained it costs the City a net $1,500, noting that in the past both revenues and expenses have not been tracked. Only the net has been tracked. In the past there has been $7,000 in expenses and $5,500 in revenues from the event. Siakel stated for 2012 expenses were about $137,000 less than revenues. She asked where that surplus was in the budget. DeJong explained the budget is more of an income statement that shows revenues and expenditures. What is being talked about is an addition to the year end 2012 fund balance and that is a balance sheet item. The cash balance went up by $137,000. That does not mean it will be spent in 2014. Siakel stated the City did a number of projects in 2013 that came in under budget. In addition to the $137,000 that was added to the General Fund balance, the 2013 sealcoat project will cost about $60,000 less than budget. The Valleywood Area improvements did not cost as much as budgeted. Salaries are down somewhat. There is some potential for getting money back from the Federal Emergency Management Agency for the recent storm damage. There will likely be a positive impact on the budget because of the sales tax exception for revenues that goes into effect beginning the first of 2014. She asked if the City is really in a dire financial situation for 2014. If so, she asked where the money is going. Administrator Joynes clarified the City is not in a dire financial situation. The City would be in more of a dire situation if Council decides not to increase the levy again for 2014. That would be the fourth year in a row. He noted that he is not recommending Council do that. He stated the cost of goods and services and personnel related expenses continue to increase even though the levy is not increasing. He then stated it’s CITY OF SHOREWOOD WORK SESSION MEETING MINUTES July 22, 2013 Page 5 of 6 anticipated the General Fund balance will be 64 percent at the end of 2013 but that can change based on a number of things (e.g., more permit revenue and a reduction in sales tax paid). But, some things could cost more or there may be unbudgeted expenditures. He noted that the City’s Policy of 60 percent is conservative. He stated there are other city funds that need to be stabilized. And, Council has the ability to do that without a great deal of pain. He commented that he thought the City was in a good situation. He stated the issues identified during the retreat can be fixed in 2 – 3 years. Councilmember Woodruff stated he agreed with Councilmember Siakel’s perspective that it’s difficult to determine what kind of action Council may need to take for 2014 without having balance sheets for the various funds. He suggested removing the $10,000 expense for insurance deductible from the Municipal Buildings Budget and if there is a need for that then it can be taken out of General Fund reserves. Woodruff then stated the City Engineer Dues and Subscription line item increased about $9,000 when compared to the 2013 budget. He asked why. Director Brown explained the requirements for the new Municipal Separate Storm Sewer System (MS4) permitting system are very onerous. The Minnesota Pollution Control Agency’s requirements for stormwater management reporting involve every department in the City. WSB is in the process of developing an online geographic information system (GIS) system that would cost less than what staff had anticipated. It will perform a lot of the record keeping as results are tallied. Woodruff suggested budgeting for the GIS expense in the Stormwater Management budget. Mayor Zerby stated there are some City residents that think City government is too big and the City needs to do a better job with what it has. Yet, the draft 2014 General Fund Budget does not seem to reflect any greater efficiency than the City had before. He is not sure if staff has been challenged with finding ways to save money; it’s not obvious to him. The General Fund balance continues to grow each year yet the City doesn’t bring the balance down fast enough. At the same time other fund balances are decreasing and for some funds that will become a problem in the not too distant future. He noted for 2012 some line item budgets were greater than what was spent. The City has a history of doing that. He stated as a resident he was asking if the budget was cut to the bone. Director DeJong commented he is not sure what the definition of cut to the bone is. He stated the 2012 annual financial report indicated that seven of the General Fund departments spent more than what was budgeted. The budgets are getting closer to the point where there is a 50/50 chance of being over or under budget for any department. The budgets are pretty tight. He then stated efficiencies have been achieved but they are not high-dollar impact. He noted that Director Brown switched cell phone plans for Public Works personnel but that is not going to save a large amount of money. He stated staff is looking at things like that all the time. He stated often times the things being asked for are service improvements; not cost reductions. He noted that about 60 percent of the City’s expenses are personnel related. Most of the police and fire operating expenses are personnel related as well. The only way to reduce expenditures substantially is to reduce personnel costs and that may result in reductions in service. Councilmember Woodruff suggested staff reassess the need for budgeting for capital outlay in the Public Works budget. There is $2,500 budgeted for 2014. Director DeJong stated that could be included in the Small Tools and Minor Equipment line item. DeJong explained capital outlay in the General Fund reflects things that are going to last longer than one year and cost less than $5,000. There is no miscellaneous line item in the CIP for lower cost purchases. Woodruff stated if things are budgeted using one philosophy and booked using another one then one philosophy should be changed. Woodruff stated that he thought the Ice and Snow Removal Budget for 2014 is too high and is always too high. He then stated the Recreation Budget includes $10,000 for overtime; the same amount as the 2013 budget. He asked if the City is spending $10,000 on overtime. He stated the Recreation Budget also includes $5,800 for the Materials & Supplies Program Expense line item which is a new line item. In the CITY OF SHOREWOOD WORK SESSION MEETING MINUTES July 22, 2013 Page 6 of 6 same budget there is an expense line item Arctic Fever/Princess Tea for $7,000 and in another spot there is a $5,000 revenue line item. Therefore, the City is budgeting for a loss. He asked if the City should put events on that cost money. For example, there is a cost to putting on Oktoberfest yet people attend for free. Those types of things should be taken into account. Administrator Joynes stated Council will not be able to make a budget decision for a month. Councilmember Woodruff stated he feels somewhat sad that Council cannot at least provide some high level direction. Administrator Joynes explained the budget process for cities is a procedure. The goal is to get everything the City needs from contributing partners in time to certify the maximum tax levy by September 15 with Hennepin County. He noted that during the previous budget discussion there was a request for staff to provide CIP information for 2014 earlier than it has done that in the past. There is not enough staff time to do the 2014 Operating Budget and the CIP at the same time. He encouraged Council to have patience with the budget process. He stated at other cities he has been involved with it is considered a good thing to add to a general fund balance each year. He noted that since he started working with the City Council has told him that they want the City to provide quality services. That costs money. And, Council has added costs during 2013 to increase that quality. He clarified that it is not up to staff to tell Council what services it should degrade or eliminate. That is a political decision that Council is vested to make by State Statute. It is not to be given to staff; that would be inappropriate. If Council wants to reduce the quality of service staff can tell how that could be done and what the impact of doing that would be. Councilmember Sundberg noted that the information staff provided is what she expected at this point during the budget process. She commented every city in Minnesota is dealing with budget issues and tough choices will have to be made. She stated Council will have to have some thoughtful discussions and maybe make some tough decisions over the next few months. Councilmember Woodruff stated wants Council to have given staff enough information to refine things so that there can be a thoughtful discussion the next time this is discussed. He then stated Council has not discussed whether the levy should be increased in 2014. Administrator Joynes stated a decision about a levy increase would give staff the best direction, while noting he is not sure Council has seen enough information. 3. ADJOURN Woodruff moved, Siakel seconded, Adjourning the City Council Work Session of July 22, 2013, at 7:04 P.M. Motion passed 5/0. RESPECTFULLY SUBMITTED, Christine Freeman, Recorder Scott Zerby, Mayor ATTEST: Jean Panchyshyn, City Clerk #2B CITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD CITY COUNCIL REGULAR MEETING COUNCIL CHAMBERS MONDAY, JULY 22, 2013 7:00 P.M. MINUTES 1. CONVENE CITY COUNCIL REGULAR MEETING Mayor Zerby called the meeting to order at 7:08 P.M. A. Roll Call Present. Mayor Zerby; Councilmembers Hotvet, Siakel, Sundberg, and Woodruff; Attorney Keane; City Administrator Joynes; City Clerk Panchyshyn; Finance Director DeJong; Planning Director Nielsen; Director of Public Works Brown; and City Engineer Hornby Absent: None. B. Review Agenda Woodruff moved, Hotvet seconded, approving the agenda as presented. Motion passed 5/0. 2. APPROVAL OF MINUTES A. City Council Work Session Minutes, July 8, 2013 Woodruff moved, Siakel seconded, Approving the City Council Work Session Minutes of July 8, 2013, as amended in Item 2, Page 2, Paragraph 7, Sentence 6 change “… that would amount to about a $30,000 for the City” to “… that would amount to about a $30,000 increase for the City” and in Item 2, Page 3, Paragraph 13, Sentence 4 change “…because it hides the fact that the City is taxing from the residents” to “… because it hides the fact that the City is taxing the residents”. Motion passed 5/0. B. City Council Regular Meeting Minutes, July 8, 2013 Woodruff moved, Siakel seconded, Approving the City Council Regular Meeting Minutes of July 8, 2013, as presented. Motion passed 5/0. 3. CONSENT AGENDA Mayor Zerby reviewed the items on the Consent Agenda. Sundberg moved, Hotvet seconded, Approving the Motions Contained on the Consent Agenda. A. Approval of the Verified Claims List B. Accepting a Donation from James Laing Motion passed 5/0. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES July 22, 2013 Page 2 of 16 4. MATTERS FROM THE FLOOR Jeff Ische, 25365 Smithtown Road, asked what the City’s long-term plan for Badger Park is. He noted that his son and daughter use the Park for athletics. He stated he thought the football/lacrosse field was unsafe for play the fall of 2011 and 2012 and the spring of 2013 because of how much it has deteriorated. Director Brown explained the Park Commission and the City Council have been having discussions about the long-term plan. There has been some discussion about reorienting the field. The investment in lighting comes into play if that is considered. He noted the City received a proposal from the Lacrosse Association to assist the City with installing an irrigation system for the field which would dramatically help improve its condition. He stated it would not be prudent to move ahead with that if it will end up being taken out or moved in a year or two. He encouraged Mr. Ische to bring suggestions to the Park Commission and City Council. Councilmember Siakel noted she served as the Council liaison to the Park Commission for the first six months of this year. Badger Park has been a topic of discussion for the Commission on and off for the last year. Siakel asked Mr. Ische how he and his family use the Park. Mr. Ische stated his son plays football and lacrosse there and during game time his daughter and her friends are usually on the playground. He noted he coaches his son’s team. Mr. Ische stated from his, as well as other parents’ perspective, the field doesn’t represent Shorewood or Minnetonka Youth Athletics very well. He noted the fields in the Cities of Edina, Orono, and Wayzata are never in as poor condition as the one in Badger Park. He stated as a coach he is put in a position to try and minimize injuries. Yet, the last two falls the field was 25 percent dirt. He then stated he would love to be part of a discussion about Badger Park. He noted he manages a golf course for a living and therefore he has very strong industry ties. He stated he may be able to get materials and perhaps equipment to use at a very discounted, if not free, rate. He has a very good relationship with an irrigation designer who might possibly do something in kind. He then stated if the Lacrosse Association is willing to contribute towards an irrigation system, he recommended the City capitalize on that even if the field may be reoriented in three years. Director Brown thanked Mr. Ische for his offer. Councilmember Sundberg stated based on Mr. Ische’s credentials and generous offer she encouraged him to apply for a seat on the Park Commission when one becomes open. Mr. Ische stated he strongly considered applying the last time there was an opening (last winter) but at that time he was on two association boards that consumed a fair amount of his time. He is no longer a director on those boards. He would be interested in learning more about how the Park Commission operates. Councilmember Woodruff stated he thought it was time for the Park Commission and City Council to make a decision about what improvements need to be made to Badger Park. It will likely come down to what is affordable for the City to do. He thought the Park improvements should be part of the budget discussion. Director Nielsen noted there is money in the City’s 2014 Park Capital Improvement Program (CIP) for some improvements to Badger Park. He stated Council will be provided a concept plan for Badger Park during its August 12 meeting. Councilmember Woodruff encouraged Mr. Ische to come to the August 12 meeting to hear what the Park Commission is proposing. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES July 22, 2013 Page 3 of 16 Mr. Ische expressed hope that funding is being considered for improvements to Badger Park. Mayor Zerby also encouraged Mr. Ische to apply for a seat on the Park Commission, while noting it has been some time since there was a person from organized sports on the Commission. Councilmember Sundberg stated Council spent the previous hour talking about budgets. In the not too distant future Council will likely have to make some tough choices; choices that will likely impact residents. She asked Mr. Ische if the residents are willing to pay a little more to improve the level of service. Mr. Ische stated at the club he manages the dues are increased to spruce up the facilities as well as to give the membership something they don’t have. He then stated if the City increases taxes to do what the City needs to do, it should also consider giving residents something they want. Mayor Zerby thanked Mr. Ische for his comments. 5. PUBLIC HEARING None. 6. REPORTS AND PRESENTATIONS A. Report by Mark Sylvester on Lake Minnetonka Conservation District (LMCD) Activities Administrator Joynes noted this agenda item has been rescheduled for the August 26 Council meeting. 7. PARKS A. Report on the July 9, 2013, Park Commission Meeting Park Commissioner Sawtell reported on matters considered and actions taken at the July 9, 2013, Park Commission meeting (as detailed in the minutes of that meeting). Councilmember Woodruff stated Commissioner Sawtell reported that Gary Ezell, representing Joey Nova’s in Tonka Bay, came to the July 9 Park Commission meeting and expressed interest in being involved with the City’s Movie in the Park event scheduled for September 13, as well as any other event. He noted that he thought it was a great offer. He asked what process the City has to follow to take advantage of the offer. He stated the City has a contract with someone to run the concession stand at Eddy Station. He asked if the City needs a contract with Joey Nova’s and if the City has to advertise that opportunity to find out if there are other interested parties. He clarified he does not want Joey Nova’s representatives to think the City doesn’t want them. But, as a public entity he is not sure the City can just accept the offer. Commissioner Sawtell stated the Park Commission did talk about that issue. Director Nielsen stated the past policy has been to take the company that comes forward. For example, the American Legion volunteered for the music event and the Park Commission accepted that. The City did make sure the Legion had insurance. Joey Nova’s would be doing a similar thing and offered to do more. The Commission accepted Joey Nova’s offer. He noted he is not sure if it warrants a contract. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES July 22, 2013 Page 4 of 16 Councilmember Woodruff commented the American Legion is a not for profit organization that also donates to various things. Joey Nova’s is a for profit business. Other businesses may feel left out. Director Nielsen noted that in the past the City has gone begging for businesses to participate. He stated Famous Dave’s participated one or two years with an event. B. Grizzly’s participated with the Arctic Fever event one year. Councilmember Sundberg asked Commissioner Sawtell if anyone else approached the Park Commission with a similar proposal. Sawtell responded no. Sundberg cautioned against penalizing creative businesses for presenting ideas that could improve events. Attorney Keane stated a co-marketing agreement of this nature does not fall within the requirements of competitive bidding. It could be a voluntary agreement that is available to anyone. Councilmember Siakel stated what is being talked about now is a one night event. It’s not about providing a continuing service like the concession stand. Commissioner Sawtell clarified the Park Commissioner and Mr. Ezell specifically talked about the Movie in the Park event and Mr. Ezell offered to consider being involved with other events as well. Mayor Zerby stated that when he walked the trail at Gideon Glen, part of the trail was washed out. He questioned if water flowing from the American Legion property caused the washout. He stated during Council’s June 24, 2013, meeting there was a question about who was responsible for maintaining Gideon Glen. Director Brown had indicated during that meeting that he thought it was the Minnehaha Creek Watershed District’s (MCWD) responsibility to maintain the vegetation and that it would be verified. Brown stated staff has not had time to research that yet. Brown clarified that the City is responsible for trails at Gideon Glen, but because of the rain events this season Public Works has been involved with other activities. Zerby stated from his untrained eye it seems that there is a lot of stormwater runoff from the parking lots flowing into Gideon Glen. Councilmember Woodruff commented the stormwater runoff has been an ongoing problem. Brown stated he will review the contract with the MCWD. Zerby noted the washout does create a liability issue and that he would like it resolved sooner versus later. 8. PLANNING A. Conditional Use Permit for Accessory Space Over 1,200 Square Feet Applicant: Jeff and Jennifer Ische Location: 25365 Smithtown Road Director Nielsen explained the Jeff and Jennifer Ische own the property located at 25635 Smithtown Road. The property is zoned R-1A, Single-Family Residential and is over two acres in size. The applicants are proposing to build a second detached garage on their property. The new garage would be located on the west side of the loop driveway. The floor area of the new garage when combined with the Isches’ existing detached garage and utility shed brings the total area of accessory space on the property to over 1200 square feet (1637). That requires a conditional use permit (C.U.P.) under the City’s Zoning Code. The request satisfies the four criteria set forth in the ordinance for granting this type of C.U.P. The Planning Commission held a public hearing on the request during its July 2, 2013, meeting. The Commission recommends approval of the request without any additional conditions. The new garage will be very well screened from the road and the abutting properties. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES July 22, 2013 Page 5 of 16 Woodruff moved, Hotvet seconded, Adopting RESOLUTION NO. 13-042, “A Resolution Granting a Conditional use Permit for Construction of Accessory Space in Excess of 1200 Square Feet of Area to Jeff and Jennifer Ische, 25365 Smithtown Road.” Motion passed 5/0. 9. ENGINEERING/PUBLIC WORKS A. Accept Bids and Consider Award of Construction Contract for the 2013 Sealcoat Project, City Project 13-08 Mayor Zerby noted that at the dais this evening Council found a copy of a memorandum from Engineer Hornby documenting the results of the bid opening earlier in the day for the 2014 sealcoat project. Engineer Hornby explained the 2014 sealcoat project is a collaborative project between the Cities of Shorewood, Tonka Bay and Victoria. One bid was received for the project. The bidder was Allied Blacktop Company. The bid amount for the entire project is $281,224.90 which is less than the Engineer’s Opinion of Cost of $287,478.75. Shorewood’s participating amount is $139,464.40; Tonka Bay’s participating amount is $59,977.00; and, Victoria’s participating amount is $81,783.50. The information received today contains a copy of a resolution awarding the contract. He recommended motion be contingent upon concurrence to award by the Cities of Tonka Bay and Victoria. Mayor Zerby stated he thinks it is great that the City is working with other cities to get better pricing on the sealcoating. He noted he is pleased that striping is part of the project. Woodruff moved, Siakel seconded, Adopting RESOLUTION NO. 13-043, “A Resolution Accepting Bids and Awarding Contract for the 2013 Seal Coat Project, City Project 13-08, to Allied Blacktop Company for a Total Project Amount of $281,224.90 with Shorewood’s Participating Amount being $139,464.40” contingent upon concurrence to award by the Cities of Tonka Bay and Victoria. Motion passed 5/0. B. Easement for Access, Construction and Maintenance, and Maintenance Declaration for Apple Road Drainage Improvements, City Project 11-15 Engineer Hornby explained the copy of the resolution included in the meeting packet if adopted would approve the Agreement for the Easement and Maintenance Declaration. The City already holds a drainage and utility easement over the area where the proposed work is to be done for the Apple Road Creek Restoration Project. The Agreement is a requirement of the permitting and funding from the Minnehaha Creek Watershed District’s (MCWD) for this Project. The Agreement includes restrictions for what the property owners can do after the improvements are made. The MCWD does not want the property owners to do their own landscaping after certain plantings have gone in. The Agreement also ties the City to perpetual maintenance of the plantings that are going in. The Agreement identifies a three-year maintenance program specific to watering the new plantings, eliminating weeds, and replacing and reseeding as necessary. After that it identifies the ongoing maintenance requirements. He noted the meeting packet contains a copy of the Agreement in a generic form. It is the same Agreement that all of the property owners affected by this project received. All of the property owners have signed the Agreement. He then noted once the Agreements have been submitted to the MCWD and the City receives the necessary permit work can be started. Planting will be done in the fall. Councilmember Woodruff asked who will be responsible for doing the maintenance work the City is responsible for (staff or a contractor) and where will the funding come from. Engineer Hornby responded it could be done by Public Works personnel or it could be contracted out, and that the cost is not reflected CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES July 22, 2013 Page 6 of 16 in the budget. Woodruff noted that it’s been conveyed that Public Works personnel do not have expertise with plantings. Therefore, it will have to be contracted out. He stated he would like to know the cost of doing that. Councilmember Siakel stated it may be appropriate to hire seasonal Public Works help that has expertise with plantings. That expertise is needed for other areas as well. Mayor Zerby noted that he continues to believe the City has to develop a landscaping standard defining what level of service will be provided to areas. The level of service should be minimal. Councilmember Woodruff noted the Agreement stipulates what the City has to do for maintenance. It must assume that whoever is going to do the work has some knowledge of what they are going to do. He suggested staff make a recommendation to Council on how to address the need. Director Brown stated maintenance of the community garden areas, Gideon Glen, the area near the Silver Lake outlet and this area all require a higher level of service. Public Works personnel do not have that type of expertise. He noted that he thought it’s a great idea to hire a seasonal person with the expertise to provide the higher level of service or to contract it out. Councilmember Woodruff stated he thought it reasonable to assume there will be more areas like this that will require similar expertise because of Municipal Separate Storm Sewer System (MS4) permitting requirements. Therefore, that needs to be planned for on an ongoing basis. Councilmember Siakel asked if the cost for doing what the MCWD is requiring at the Silver Lake outlet area and other areas should be funded out of the Stormwater Management budget. Director Brown stated he believes it is a stormwater management function. Mayor Zerby asked if the MCWD came up with the requirements for maintenance. He stated, for example, the City does not remove invasive species from City-owned parks. The Agreement states “Removal of invasive species will occur on an ongoing basis. Weeds will be hand pulled or spot treated with aquatic formulations of herbicide according to instructions on the herbicide label.” It also states “Upland and streambank plantings will be replaced and seeded areas will be reseeded as necessary in the spring and fall in accordance with the approved plan to maintain the ecological health and function of the streambank.” He asked if it would be appropriate for the City to push back on some of the maintenance requirements. They seem quite onerous. Engineer Hornby stated some of the requirements in the Agreement are tied to receiving funding from the MCWD. The intent is to have a commitment to maintain what the MCWD helped fund. He then stated he will review the agreement with the consultant who developed the plan to see if it included costs to provide the maintenance for the first three years. He noted that the maintenance should be less after the first three years. Mayor Zerby asked if the City and the MCWD have negotiated the maintenance requirements. It seems to be one sided. Engineer Hornby explained the project has been on hold for about the last year because those items were being negotiated. The former city engineer had spent a fair amount of time with MCWD representatives on this. And, he thought Attorney Keane and the attorney for the MCWD have been negotiating with each other. Mayor Zerby asked if the MCWD originally stipulated more maintenance requirements. Hornby stated he was not involved in those discussions; the former city engineer was. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES July 22, 2013 Page 7 of 16 Councilmember Woodruff stated this project was approved by Council early last year. Director Brown stated that is correct. Brown explained the project was at first held up during negotiations for the easement agreements. Then the MCWD essentially came back with requirements that did appear onerous. The former engineer attempted to get those reduced. Woodruff asked if this project is substantially complete. Brown explained trees have been cleared from the site and some minor erosion controls have been established. Woodruff stated he did not think he attended the meeting when this was approved. Woodruff noted that Council can decide if it wants to move forward with this project. Councilmember Siakel stated this project needs to be done and it would be cost prohibitive for the City to do it on its own. The fact that the MCWD is involved at all is a good thing. She then stated she thought the MCWD specifying what its requirements for maintenance are in such detail seems to make the task onerous. She asked if the City has to exactly do the maintenance as stipulated by the MCWD. Engineer Hornby explained how WSB & Associates (WSB) would normally do this type of thing. It would send a natural resource scientist to the site to identify which plants are invasive and which are intended to grow there. Two or three times a year it would have one or two people walk the site and either pull out weeds or spray them. That would be about one days’ time for one or two people. WSB does this with wetland restorations and similar type projects. He stated that work is not a costly item. A contractor could be hired to do the work and the annual maintenance. He noted he did not think the work is onerous. If the City could match the season it could potentially hire a natural resource intern. But, it has to be a person with the right knowledge. Councilmember Siakel stated she thought it reasonable that the City would be responsible for maintenance. She noted she would like to have some idea of what it will cost. Director Brown stated planting will not be done until fall. Therefore, there is time for staff to come back with an estimated cost. Councilmembers Siakel and Woodruff stated they would appreciate having that. Councilmember Hotvet stated she likes the idea of pursuing an intern or finding if there are programs to train people on how to do that. Councilmember Siakel asked if there is someone at with the MCWD who could lend some expertise in identifying invasive plants. Director Brown stated cities will start to see these types of proposals as common place. The MCWD is probably struggling with that also. Staff will check to find out if the MCWD has available resources but he doubts it would be willing to commit much time. He then stated the new MS4 requirements are making people get very creative with natural features such as rain gardens and plantings. Mayor Zerby stated he would appreciate staff bringing cost estimates back to Council. He then stated one of the MCWD’s requirements is to submit brief annual reports on what maintenance was done (including specifics about the maintenance) along with photographs of the project area and he assumes Director Brown would have to do that. He noted that he would like to have staff go through the requirements and provide Council with their perspective on what is being asked for. There was Council consensus to continue this item to a future meeting. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES July 22, 2013 Page 8 of 16 10. GENERAL/NEW BUSINESS A. Rate Study Proposals Director DeJong stated the meeting packet contains a copy of two proposals for utility rate studies; one from Ehlers, Inc., and the other from Northland Securities, Inc., (Northland). Both have provided not-to- exceed quotes for four rate studies. Ehlers’ quote is $24,500. Northland’s quote is $20,000. Staff believes each firm would be good to work with and each has the capability of performing the work. The choice is up to Council. Councilmember Siakel stated she was surprised the quotes were so high. She then stated thought there is a definite need to do a stormwater rate study. She does not think there is a need to do a recycling rate study. She is unsure if there is a need to do a sewer rate study and water rate study. She asked Director DeJong what his thoughts are. DeJong stated he thought it would not be a problem to drop the recycling rate study. It’s a small dollar enterprise operation and the rate increase implemented two years ago seems to be adequate. DeJong noted that if the City loses some of the grant funding it receives from Hennepin County in the future recycling rates would have to be increased to cover that cost. Mayor Zerby stated it’s his recollection that City had a water rate study done three or four years ago. Administrator Joynes noted it was done in 2009. Councilmember Woodruff stated it’s his recollection that it cost about $8,000 and it was done by Northland. Councilmember Woodruff stated he agrees with Councilmember Siakel that there is no need to contract out for a recycling rate study; it could be done by staff. He commented that the City has the results of the water rate study it did in 2009. He stated that Ehlers is proposing some things not considered before, but he is not sure it would be worth $8,000 to study those things. He then stated Ehlers provided an a la carte pricing proposal. Northland provided a proposal with a flat cost for the base process and one utility fund study plus an additional fee for each additional utility fund study. He noted that he is leaning toward Ehlers and eliminating the recycling and water components. Ehlers’ cost to do the other two would be $13,000. He thought it would be a good value for the money. He stated he likes Ehlers’ proposal for a number of reasons not the least of which is it will come back a year after the study to review the results to assess if the intended results were achieved. Councilmember Siakel stated she is also leaning toward Ehlers. She asked if the City could pick which rate studies to do with Ehlers. Director DeJong clarified the City could do that with both proposals. Councilmember Woodruff stated he thought the City should do both a stormwater and sewer rate study reiterating Ehlers cost to do that is $13,000. Northland would charge $14,000. Councilmember Siakel asked why the City should do a water rate study and a sewer rate study. Councilmember Woodruff stated the sewer utility fund is heading in the wrong direction. Administrator Joynes noted that since the last rate study in 2009 some assumptions about the Water Fund have been changed. He indicated that is a relatively complicated question. He stated he thought the Sewer Fund, the Stormwater Management Fund and the Water Fund are critical in establishing the stability the City is looking for. Councilmember Hotvet asked if Northland would be willing to look at the 2009 study it did and determine if it is still applicable. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES July 22, 2013 Page 9 of 16 Councilmember Woodruff commented that from his perspective Northland’s cost to do a water rate study should be significantly less than Ehlers because it did do the study in 2009 and the person who did the study would be part of Northland’s team. Director Brown clarified there would be some base information collected during the 2009 study that would be of benefit to Northland. But, the questions and operating parameters are vastly different now. At the time of the 2009 study the then city council was looking specifically at what it would take build-out the City’s water system to the entire City and if it would be possible to reduce the current water connection fee. Councilmember Woodruff stated from his perspective there were three objectives for the 2009 water rate study. One was what it would take to build out the water system throughout the City. Another was to establish a rate structure that would penalize high water usage users. And the third was to lower the base rate. He then stated he thought the water rate study could be done at a later date. Councilmember Sundberg stated she is leaning toward Ehlers. She thought it would be beneficial to get another perspective. She then stated she supports focusing on the sewer and stormwater rate studies. Woodruff moved, Sundberg seconded, retaining Ehlers, Inc., to conduct a sewer and a stormwater rate study for an amount of $13,000 with the costs being paid for out of the respective Enterprise Funds. Motion passed 5/0. B. Diseased Tree Strategy Director Nielsen clarified that staff does not expect Council to take any action on this item this evening. Staff is suggesting Council discuss a diseased tree strategy during at least several study sessions. Nielsen explained the memorandum from him (a copy of which is included in the meeting packet) is intended to describe the scope of the problem. A strategy should address all diseased trees with a focus now on those trees diseased with emerald ash borer (EAB). Professionals continue to believe that within the next 8 – 10 years ash trees will basically be gone. The question for cities is whether they should wait to let that happen and bear the expenses to deal with the issue in one to three budget cycles. Or, should they take a more proactive approach and start dealing with the issue now and spread the financial impact out over a longer time period, which is what staff suggests. When Dutch elm disease was prevalent in the 1970s the City took a very proactive, expense approach to dealing with it. Freeman Park was used as a burn site for debris. There are a lot of public ash trees in the City; probably higher than average. Preliminary estimates are that close to one half of the public trees are ash trees. It’s closer to 70 percent in Freeman Park. The majority of the ash trees in the tree inventory the City has conducted are in or around Freeman Park. It’s conservatively estimated that it will cost $70,000 or more a year to deal with 5 percent of the ash trees per year. The City of Minneapolis originally established a goal of deal with 10 percent of its public ash trees per year and quickly realized it could not afford to do that. It’s his understanding that the Three Rivers Park District is just going to let trees go. That would raise issues with how the City wants diseased trees on private property to be handled. When Dutch elm disease was prevalent the City would mark diseased trees on private property and the property owner was required to remove it in a very short period of time. It would be difficult for the City to let public EAB diseased ash trees go and require private property owners to remove their EAB diseased trees when noticed. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES July 22, 2013 Page 10 of 16 Staff has talked about have a plan for dealing with EAB diseased trees in Freeman Park alone. Removing 70 percent of the trees in the Park would have a drastic impact on the City. If the City were to start to remove and replace sooner versus later it would allow some replacement trees to grow while others are being removed. Staff has also talked about using part of the August 12 Council work session to talk about a diseased tree strategy. Councilmember Hotvet stated she supports the idea of discussing this in a work session. She encouraged Director Nielsen to find out how surrounding communities (e.g., the Cities of Chanhassen and Victoria) are addressing this. She stated it would be futile to aggressively address this if cities close to Freeman Park are not going to do anything. She would like to be provided with that information for the work session when this will be discussed. Director Nielsen stated the City needs someone with expertise to direct what the strategy should be. If a forester were commissioned that would be something that could be shared by multiple cities. He commented that he does not think any South Lake city has its own forester, but they may contract with one. Mayor Zerby questioned if staff could work with a representative from the Minnesota Landscape Arboretum on this. Director Nielsen stated possibly. Zerby asked if the tree inventory is done. Nielsen stated there are a couple of streets yet to do. Nielsen noted that the Building Official is working on the inventory between other things. At one time a former member of the Planning Commission who had expertise with this was going to help with that task, but he ended up having surgery and could not do it. He explained a preliminary inventory map is done and he hopes that all of the streets will be on the map by the end of August. He thought the inventory is about 85 – 90 percent complete. Director Nielsen stated the current thought is to hold off on the larger trees and take out and replace smaller trees so the new trees can start to grow. He then stated he thought there are a few trees that warrant treating them. One is on the City Hall property. There are a couple ash trees in Silverwood Park that provide some nice shade. He stated that to him it makes sense for the replacement trees to be bare- root stock. He noted staff will put together better cost information and find out what surrounding communities are planning on doing. Councilmember Siakel requested staff prepared a draft plan for how to address the issue in Freeman Park for the first work session when this is discussed. It sounds it is the epicenter of the problem. The plan should identify what trees could be taken out now as well as a replacement approach. She noted there are three ash trees near the community garden in Freeman Park. She stated she thought they could be taken down this year. Director Nielsen stated staff could do a preliminary concept plan. But, at some point a professional must get involved. Councilmember Sundberg suggested that in the process of removing ash trees the City also remove invasive species such as buckthorn at the same time. Director Nielsen stated that would be possible. Director Nielsen stated it’s prudent to replace the trees with a variety of types. 11. OLD BUSINESS A. City Brand/Logo Use Policy Mayor Zerby noted the meeting packet contains a copy of a draft City Logos Use Policy and a copy of a draft Request for Use of City Logos form. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES July 22, 2013 Page 11 of 16 Administrator Joynes stated that during its July 8, 2013 meeting, Council and staff discussed the use of City logos. Council had been provided with a couple of complex policies for large cities. He had promised Council that he would provide a simplified version of a policy for consideration this evening. The Policy stipulates that Council would be responsible for considering applications use of City logos when a written request is made. The Policy does not apply to city publications or community events and programs established by the city which are co-sponsored with outside parties. Joynes reviewed the guidelines for use stipulated in the Policy. 1. The City of Shorewood logo, Shorewood trails logo, or any other City logos trademarked by the State of Minnesota may not be used to endorse any commercial product or service. 2. The City of Shorewood logos may not be used to solicit funds or other contributions of monetary value without written consent by motion of the City Council. 3. The City of Shorewood logos may not be used in any manner that could give rise to the appearance of such endorsement or solicitation. 4. Any use of the logos outside of city events and publications must have written consent by motion of the City Council. Joynes noted that to date the City has received sporadic requests. Council should be able to consider requests and decide which uses are legitimate. Councilmember Sundberg stated that she likes the simplicity of the guidelines and that the guidelines covered things well. She expressed her support of the guidelines as drafted. Councilmember Woodruff stated he has trouble with the third guideline. It refers to the endorsement or solicitation. Councilmember Sundberg stated she thought that is a nice catchall. Woodruff stated he is okay with how things are written. Mayor Zerby asked if there will be any approval of how it will be used. He stated that usually when the use of a logo is approved the actual use is also visually approved. Administrator Joynes stated when the use is approved, the City will provide the setup and design of the logo that they can use. Zerby asked if the City would require a full-color use and not a black and white use. Joynes explained the City would ask what it will be used for and how it will be used. Joynes stated they may not want to use a color logo. But, they can’t do anything with the design and content of the logo. Council may want to ask for a visual of what it will look like. Councilmember Hotvet suggested requiring the applicant provide a proof of how it will be used. Hotvet moved, Sundberg seconded, approving the City Logos Use Policy subject to adding a requirement that the applicant provide a proof of how it will be used upon authorization. Motion passed 5/0. B. Consider Proposal for Silver Lake/Covington Road Landscape Plan Director Brown explained during its June 10, 2013, meeting Council considered a proposal from WSB & Associates (WSB) for services to prepare a final landscape plan for the area known as the Sediment Trap for Silver Lake. Council asked that the objectives for the plan be clarified. He stated staff believes the updated proposal (a copy of which is included in the meeting packet) does that. He explained the plan is to address native plantings as requested. An arborist will evaluate the existing vegetation in the area to determine existing and future long-term viability of vegetation and provide a report on that. WSB will CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES July 22, 2013 Page 12 of 16 prepare a preliminary plan for Council’s review and then provide a final plan in quote form. The City can then obtain quotes for doing the landscape work. The cost for doing the WSB work is $2,925. Staff is asking Council for authorization to move forward with the preparation of the landscape plan which will be paid for out of the Stormwater Management Fund. Brown noted staff is also asking Council to provide direction on the desired level of maintenance for the area. He explained some property owners in the area want it to be mowed as frequently as Silverwood Park is mowed. The area is located in a Shoreland District. There is an ongoing debate about whether the body of water referred to as Silver Lake is a wetland or a lake. The Minnesota Department of Natural Resources does not classify it as a navigable lake. Some people classify it a wetland. If it is a wetland it cannot be mowed within 35 feet of the edge of the water, the wetland buffer area. In response to a question from Councilmember Hotvet, Director Brown explained the $2,925 cost is to prepare a landscaping plan, do the evaluation of vegetation, and then prepare the plans and specifications for bidding. Councilmember Siakel stated she thought there are two options for the area. Develop a plan for natural plantings or just mow the area. She noted this area came up during the Park Commission’s tour of City parks. She stated it could potentially be considered as part of Silverwood Park. The property owners in the area don’t want that. She then stated the City has already spent a lot of money on the Silver Lake area. She questioned how much more Council wants the City wants to spend. She asked if native plants would still have to be maintained. She stated this is one of about five areas where Council has to decide on the level of maintenance service it wants to provide, noting Mayor Zerby has recommended before that Council develop a landscaping policy defining what level of service will be provided to City-owned areas. She noted she is unsure about what to do about this. Councilmember Hotvet stated this same type of issue will come up with trail projects. She expressed her agreement with a need to develop a policy. Councilmember Woodruff explained that before the City bought the land it was a piece of an existing lot that was wild and undeveloped. There was no grass. After purchasing the land the City cleared most of it out, mitigated the stormwater drainage issue and then seeded the area. Then the person who owned the property adjacent to the area asked the City how it was going to maintain the seeded area. The thought was the City would mow it and weed it. He stated from his perspective mowing is an aesthetic issue and weeds are an issue. The property was not maintained before the City bought it and now there is an expectation that it will be well maintained. He noted that he agrees the $2,925 is a lot of money just to get a landscape plan. He expressed concern that there could be erosion problems if the site is not restored to what it naturally was. Or, maybe what was natural was part of the problem. He stated that needs to be understood. He then stated the site is in a residential area where there are fairly expensive homes. It would not be good for the site to become wild and full of weeds. Councilmember Siakel asked how frequently the City mows other areas in the City. Councilmember Woodruff asked how often the City mows the property it owns on Smithtown Road. Director Brown stated every couple of weeks. Brown noted that he does receive calls from people in between mowings telling him the grass is long. Director Brown stated in addition to City parks the City also mows the City-owned property along Vine Hill Road near Hooper Lake Road. The residents in the area use it as recreation space because it is an open lot. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES July 22, 2013 Page 13 of 16 Mayor Zerby noted that he has spoken with a representative from Metro Blooms about the site during a recent event. They indicated it would do a plan for $75. He asked if WSB, an engineering firm, is needed to prepare a plan. Director Brown stated the City can try to make use of Metro Blooms. Brown then stated there are some things that require expertise. One is assessing the long-term viability of the trees on the site now that a construction effort is completed. Metro Blooms could possibly help with that. A wetland biologist could be used for the other portion. Zerby stated an experiment was done with prairie grass a few years ago. Councilmember Woodruff noted the intent with that was to have an area where maintenance would not be required. Zerby noted that is what he is going after. Woodruff stated that would not be appropriate in a residential neighborhood. Councilmember Siakel noted the parcel of land is not a typical residential lot. Part of it abuts the Lake and part abuts the street. Director Brown stated a good portion of the lot where the flume is that is formed by the concrete gutter has tensar grid which has pea rock in it. The City will maintain that underground structure which has a reinforced surface on it so equipment can be driven over it. That area will be more challenging to landscape. Mayor Zerby stated it’s important to set the right expectation for the residents and the City. Councilmember Woodruff stated the City could have a policy that it mows the area every two weeks and sprays for noxious weeds periodically. He then stated when the construction work was done a number of trees were buried. There is concern that they may die. Mayor Zerby noted the City has a tree preservation and replacement policy. Councilmember Siakel asked how often Silverwood Park is mowed. Director Brown stated once a week. Siakel suggested mowing it every two weeks for the remainder of the mowing season. She stated it will take some time to agree to a policy about consistent maintenance. She cautioned against doing something for one area that will not be consistently done for other areas in the future. She asked if the City is trying to respond to the desires of one resident or the long-term needs of the area. Councilmember Woodruff stated this is a similar situation to the one at Apple Road, but nothing has been planted there other than grass. He surmised that if the Riley-Purgatory-Bluff Creek Watershed District (RPBCWD) had the same requirements as the MCWD has the City would have seen such a document. He noted the RPBCWD helped pay for some on the work on the site being discussed. He stated he agrees there is a need to develop a policy. Mayor Zerby suggested staff determine if the City is adhering to its own tree preservation and replacement policy. Administrator Joynes summarized tht Council wants staff to mow the area every two weeks and periodically spray for noxious weeds. It will also look at the tree preservation and replacement policy. Nothing else will be done until Council has established minimum standards for various projects. That will be done after the budget process is complete. 12. STAFF AND COUNCIL REPORTS A. Administrator and Staff CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES July 22, 2013 Page 14 of 16 1. Monthly Financial Report Director DeJong noted that a copy of the June 2013 General Fund Monthly Budget Report was placed at the dais this evening. He stated he will provide Council with a thorough fund balance report for the next meeting. 2. Southshore Center Advisory Committee Administrator Joynes stated the Southshore Center Advisory Committee is scheduled to meet for the first time at 5:30 P.M. on July 23. Staff will provide with Committee with background information and what the charge of the Committee. Mayor Zerby asked if the meeting has been noticed, noting that he will make some opening comments at the meeting and Councilmember Sundberg is the City’s representative on the Committee. 3. Update on 5795 Country Club Road Administrator Joynes stated things are proceeding with getting the City-owned property located at 5795 ready to be put on the market. 4. Update on Trail Projects Director Brown stated the new County Road 19 trail has been totally paved. The City is waiting for the irrigation contractor to come back and re-establish irrigation near the Xcel Energy property which had to be relocated. Due to the contractor’s backlog there will be about a week delay in getting that done. A guardrail has to be added near the culvert to protect pedestrians. The tree removal for the Smithtown Road sidewalk project work has been started and the contractor is working on the storm sewer items on the west end of the project. Public Works personnel continue to work with the contractor on a daily basis. Director Nielsen stated staff has asked the contractor for the Smithtown Road sidewalk project to update the project schedule because of the late start on the project. The updated schedule will be hand delivered to property owners who abut the sidewalk and it will be placed on the City’s website. The residents he has spoken to understand the delay. 5. Christmas Lake Boat House Clean-Up Director Nielsen stated there was a boat house fire on a property abutting Christmas Lake and Ridge Road on July 5. The boat house was located very close to the water. The boat house was fairly substantial in size and it burned to the ground. The property owner is going to have the boat house rebuilt; they are allowed to do that. The contractor is struggling with how to remove the debris from the site. The shoreline at the site is very rugged and steep. The contractor has asked to take the debris out on a pontoon boat. A boat will be purchased, debris would be placed on it, at the Christmas Lake boat launch the boat will be taken out of the Lake and placed on a trailer with the debris on it, and the debris will be taken off and placed in a garbage truck. That process will take at least six days. Staff has told people that the City wants that activity to be done during times where there would be less activity at the launch. Staff has encouraged them to find out if there is another location that would serve the purpose. Staff has asked the contractor to provide a plan for that activity. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES July 22, 2013 Page 15 of 16 Other Director Brown stated the Metropolitan Council Environmental Services (MCES) Excelsior Boulevard forcemain project is to the point where pipe is being installed. He then stated the new sweeper has been delivered and put in use. It was used at the side of an accident earlier in the day. Public Works personnel have been dealing with gravel on streets from recent storms. He noted that every day for the past two weeks Public Works personnel had to open up the Silver Lake outlet because a furry friend has been damming it up every night. He explained a crew of three guys goes out each morning for about two hours to jet out the culvert. He stated a preconstruction conference is scheduled for the end of the month to try and get the outlet reconstructed now that the water has started to recede. He noted the speed awareness display signs have been ordered. Director DeJong stated the HeatSeeker Technology Partners network connection to the Southshore Community Center (SSCC) has been installed. The SSCC is now connected to City Hall and Public Works. The Wi-Fi was set up earlier in the day. The telephone line at the SSCC will be cut over on July 29. He then stated staff has just completed the review of the contract for the new financial system. The hope is to have a project schedule available for the next Council meeting. Director Nielsen stated the Christmas Lake Homeowners Association (HOA) has been talking with Carver County about developing a centralized inspection program. If that were to come to fruition a person would receive a number after their watercraft was inspected for aquatic invasive species (AIS) and found to be clean of them. The watercraft would not have to be inspected at the Christmas Lake boat launch area. The HOA and Carver County would like to mount a pole or have the City mount a pole at one end of the access at the launch area for a camera to send photos of the launch area to the centralized location. People at the centralized location could tell people if the parking spaces at the Christmas Lake launch area are full and if the gates are working. The HOA is willing to pay for the cost of the pole. Nielsen noted that the fence is up around the community garden located in the Skate Park. Councilmember Siakel asked about the status of the basketball hoops for Cathcart Park. Director Brown stated they have been ordered. B. Mayor and City Council Councilmember Siakel noted she attended the Excelsior Firefighters fund raising dance on July 19. It was well attended and she thought it was successful. She also noted she attended the July 17 Excelsior Fire District (EFD) Board meeting. She explained the first draft of the EFD 2014 Operating Budget projected Shorewood’s 2014 municipal contribution would go down by approximately $7,000. The third draft shows a decrease of about $5,000 when compared to 2013. The Board has had lengthy discussions about staff compensation, with a particular emphasis on the compensation of the Fire Chief and Fire Inspector (both full-time positions). The Board had asked that a salary survey be done for those two positions. The comparison of 25 other cities using the most current data from the League of Minnesota Cities (LMC) reflects the EFD Fire Inspector is paid substantially less than the lowest paid inspector in the other cities. The Fire inspector is paid even more substantially less when compared to the average of a more comprehensive salary survey done of more than 40 fire agencies. The Board is proposing the Fire Inspector salary be brought up to the lowest level over the next three years. She noted that she has understood Council to say a priority should be placed on police and fire services. And, that Council believes people should be compensated fairly for the job they are doing. Mayor Zerby noted that he saw Council heads nodding affirmatively. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES July 22, 2013 Page 16 of 16 Councilmember Hotvet noted that she works with the Fire Inspector a lot on large scale events and the Inspector goes above and beyond what she is required to do. Councilmember Siakel stated to her it seems that the EFD budgetary can has been kicked down the road. It’s come to a point where decisions have to be made. She explained the salary increase for her and the Fire Chief are to be funded in part out of the EFD Operating Fund balance and in part out of the 2014 municipal contribution. She noted the EFD Board also agreed on compensation for the Fire Chief. His compensation would increase 4.5 percent in 2014, 4.4 percent in 2015 and 4.2 percent in 2015. That would bring his salary up to the median. She stated for the people and quality of service provided bringing their salaries up to a fairer level makes good sense. She explained the Board agreed to transfer $10,000 out of the Fund balance into the capital fund for necessary firefighter equipment purchases. Siakel noted there is a joint meeting of the EFD Board and EFRA Board scheduled for August 6 at 6:00 P.M. at Fire Station 1. There is a joint meeting of the EFD member City Councils scheduled for August 14 at 6:00 P.M. at Station 1 to provide them with the opportunity to discuss the EFD Board recommended 2014 Operating Budget and 2014 – 2034 Capital Improvement Program. Councilmember Woodruff stated he attended a Metro Cities Revenue and Taxation Committee meeting recently. He learned the State legislature passed a law that would supposedly exempt cities from paying sales tax starting 2014. Unfortunately, that is not completely the case. The law does not apply to joint powers organization. Mayor Zerby stated he attend the South Lake Minnetonka Police Department (SLMPD) Coordinating Committee’s quarterly meeting on July 10. Two alternative 2014 Operating Budgets were presented at the request of the Committee. The one the Committee is recommending reflects an increase of 2.9 percent, which he basically calls an inflationary increase, when compared to 2013. One of the major categories in supplies is fuel. He noted that the new gas station on the corner of County Road 19 and Smithtown Road has agreed to give the SLMPD a generous discount on gasoline purchases. He also noted that SLMPD Chief Litsey asked for a 10-hours-per-week increase in Community Service Officer hours. The Committee did not agree to that. Mayor Zerby thanked Director Brown for helping out with a situation on Strawberry Court when a 5 inch rainfall over taxed the storm sewer system. He asked Brown to pass his thanks on to the Public Works personnel. 13. ADJOURN Woodruff moved, Siakel seconded, Adjourning the City Council Regular Meeting of July 22, 2013, at 9:03 P.M. Motion passed 5/0. RESPECTFULLY SUBMITTED, Christine Freeman, Recorder ATTEST: Scott Zerby, Mayor Jean Panchyshyn, City Clerk #3B MEETING TYPE City of Shorewood Council Meeting Item Regular Meeting Title / Subject: Adopt the Codification of the Ordinances Approved in 2012 (Supplement 8) Meeting Date: August 12, 2013 Prepared by: Jean Panchyshyn, City Clerk Reviewed by: William S. Joynes, City Administrator Attachments: Ordinance, Resolution Background: On November 22, 2004, Council adopted Ordinance No. 409, which approved the Municipal Code Book recodification provided by American Legal Publishing and the League of Minnesota Cities. With this recodification, the Code Book was current through Ordinance No. 401 passed on February 23, 2004. Seven supplements have been completed since the initial recodification. These seven supplements included Ordinance No’s 474-488. The eighth supplement (S-8) to the City Code Book includes Ordinance No.’s 489–499. American Legal Publishing has provided copies of the replacement pages to the City Code Book for this eighth supplement (S-8). The attached Exhibit A provides an outline of the sections/pages of the Code Book that have been updated. The attached Ordinance accepts the replacement pages, which includes Ordinance No’s 489-499 approved during 2012 for the City Code Book. The Code Book is available on the City’s Web site in a searchable format, via a link to American Legal Publishing Corporation. Financial or Budget Considerations: The total cost for 88 pages of S-8 was $1,658. Funds exist in the Administration budget (41300) for this expense. Recommendation / Action Requested: Adoption of an Ordinance to enact and adopt the 2013 S-8 Supplement to the Shorewood City Code Book, provided by American Legal Publishing Corporation; and Adoption of a Resolution approving a summary publication of said Ordinance. Next Steps and Timelines: Staff will update all of the city code books with the new pages. Connection to Vision / Mission: Providing quality public service. Mission Statement: The City of Shorewood is committed to providing residents quality public services, a healthy environment, a variety of attractive amenities, a sustainable tax base, and sound financial management through effective, efficient, and visionary leadership. Page 1 CITY OF SHOREWOOD ORDINANCE NO. ____ AN ORDINANCE ENACTING AND ADOPTING THE 2013 S-8 SUPPLEMENT TO THE CODE OF ORDINANCES FOR THE CITY OF SHOREWOOD MINNESOTA WHEREAS American Legal Publishing Corporation of Cincinnati, Ohio, has completed the seventh Supplement to the Code of Ordinances of the City of Shorewood, which supplement contains all ordinances up through and including Ordinance No. 499 of a general and permanent nature enacted since the prior supplement of the Code of Ordinances of the City of Shorewood; and WHEREAS , it is the intent of the City of Shorewood to accept these updated sections, as outlined in the attached Exhibit A; NOW THEREFORE the City Council of the City of Shorewood, Minnesota, ordains: Section 1. That the eighth supplement to the Code of Ordinances of the City of Shorewood as submitted by American Legal Publishing Corporation of Cincinnati, Ohio, is hereby accepted. Section 2. This ordinance adopting the 2013 S-8 Supplement to the Code of Ordinances shall take effect upon publication in the City's official newspaper. ADOPTED BY THE CITY COUNCIL of the City of Shorewood, Minnesota, this 12th day of August, 2013. __________________________ Scott Zerby, Mayor ATTEST: ____________________________________ Jean Panchyshyn, City Clerk SHOREWOOD, MINNESOTA Instruction Sheet 2013 S -R Supplement REMOVE OLD PAGES INSERT NEW PAGES Title page Title page ADOPTING ORDINANCE, 15. 16 TABLE OF CONTENTS L2 1,2 TITLE 300: BUSINESS REGULATIONS 3 11 -1 through 311 -4 3 1 1 - 1 through 31 L -41 TITLE 400: LIQUOR REGULATIONS 402 -1, 402 -2 402 -1, 402 - -2 TITLE 600: PUBLIC SAFETY 600 -1, 600 -2 600 -1, 600 -2 — 612 -1 through 612 -4 'I "I'rLE 700: ANIMAL REGULATIONS 700 -1, 700 -2 700 -1, 700 -2 704 -1, 704 -2 704 -1, 704 -2 — 705 -1 through 705 -10 I'I d`LF; 900: PUBLIC RIGHT-OF -WAY AND PROPERTY 902 -1, 902..2 902 -1. 902 -2 902 -5, 902 -6 902 -5 through 902 -68 TITLE' 1200: ZONING AND SUBDIVISION REGULATIONS 1201 -1 through 1201 -4 1201 -13, 1201 -14 120121, 1201 -22 1201 -43 through 1201-44B 1201 -85 through 1201 -86B 1201 -1 through 1201 -4 1201 -13. 1201 -14 1201 -21, 1201 -22 1201 -43 through 1201 -44B 1201 -85 through 1201 -86B SHOREWOO D, MINNESOTA. INSTRUCTION SHEET REMOVE OLD PACES 1301 -2A through 1301 -6 1301-11,1301-12 3 through 8 17.18 21, 22 27. 28 9 through 12B 15 through 20 PJA - 612812013 INSERT NEW PAGES TITLE 1300: MUNICIPAL FEES PARALLI L RJ4F[1 ➢`hl6'FS INDEX 1301 -2A through 1301 -6 1301 -11, 1301 -12 3 through 8 17,18 21, 22 27, 28 9 through 12B 15 through 20 2 CITY OF SHOREWOOD RESOLUTION NO. 13-___ OFFICIAL SUMMARY OF ORDINANCE NO. ____ The following is the official summary of Ordinance No. ___ approved by the City Council of the City of Shorewood, Minnesota, on August 12, 2013: An Ordinance Enacting, Codifying and Adopting the 2013 S-8 Supplement to the Code of Ordinances for the City of Shorewood, Minnesota, which contains Ordinance No.’s 489- 499, approved since the codification of the 2012 S-7 Supplement. A printed copy of the Ordinance is available for inspection by any person at the Office of the City Clerk. ADOPTED BY THE CITY COUNCIL of the City of Shorewood, Minnesota, this 12th day of August, 2013. ___________________________ ATTEST: Scott Zerby, Mayor _________________________________________ Jean Panchyshyn, City Clerk #3C MEETING TYPE City of Shorewood Council Meeting Item Regular Meeting Title / Subject: Resolution Approving Lease Agreement A-131264 between Hennepin County and the City of Shorewood Meeting Date: August 12, 2013 Prepared by: Jean Panchyshyn, City Clerk CC: Bill Joynes, City Administrator; Tim Keane, City Attorney Attachments: Agreement No. A-131264, Resolution Policy Consideration: Consider the new Election Equipment Lease Agreement with Hennepin County Background: Hennepin County has purchased new digital scan precinct counters, Model DS200, for use in all elections throughout the county. This equipment replaces the 12-year old M100 optical scan precinct counters, for which the city entered into Hennepin County Lease Agreement A-052276. The new Lease Agreement, A-131264, attached, terminates the prior Agreement. The new Agreement includes the DS200 precinct counters, as well as the existing AutoMARK Voter Assist Terminals, and all related hardware and services. The city is responsible for the maintenance of the equipment at a current cost of $187/year for each DS200 and $160/year for each AutoMARK. This cost and arrangement is similar to past years. The Agreement has been reviewed by all Hennepin County cities, as well as the City Attorney. The city will lease five (5) Model DS200 counters and five (5) AutoMARK terminals, and all related hardware and services, for use in absentee voting and on Election Day. The new DS200 counters are scheduled to be delivered the week of August 26, 2013. It should be noted that the Minnetonka School District has contacted the city to share use of the city’s election equipment for its elections in the odd-years. An Agreement for this use will be forthcoming. It is common practice to share equipment between school districts and cities, but this will be the first time the city will collaborate with the school district on sharing election equipment. During the odd-years, the school district will have all responsibilities for the equipment, including the maintenance costs for that year. This Agreement will be brought forward for approval at the next council meeting. Financial or Budget Considerations:The city is responsible for the maintenance of the equipment at a current cost of $187/DS200/year, and $160/AutoMARK/year. This cost and arrangement is similar to past years. Options: 1) Approve the Agreement as provided; or 2) Do not approve Recommendation / Action Requested: A motion to adopt a Resolution authorizing the Mayor and City Administrator to execute Lease Agreement No. A-131264 between Hennepin County and the City of Shorewood. Next Steps and Timelines: The signed Agreement will be mailed to Hennepin County for processing. Connection to Vision / Mission: Supports quality public services and sound financial management. Mission Statement: The City of Shorewood is committed to providing residents quality public services, a healthy environment, a variety of attractive amenities, a sustainable tax base, and sound financial management through effective, efficient, and visionary leadership. Page 1 Agreement No. A-131264 HENNEPIN COUNTY/CITY OF Shorewood LEASE AGREEMENT THIS AGREEMENT, made by and between the COUNTY OF HENNEPIN and the CITY OF Shorewood, both political subdivisions of the State of Minnesota, hereinafter referred to as the “County” and the “City” respectively. For purposes of this Agreement, the address of the County is A2300 Government Center, Minneapolis, Minnesota 55487 and the address of the City is 5755 Country Club Road, Shorewood, MN 55331. WITNESSETH WHEREAS, the Hennepin County Board of Commissioners in Resolution Number 13-0134 authorized the purchase of election equipment for a countywide digital scan voting system, election hardware and services; and WHEREAS, the Hennepin County Board of Commissioners in Resolution Number 05-564 authorized the purchase of Assisted Voting Technology equipment for a countywide optical scan voting system, election hardware and services through the State of Minnesota Cooperative Purchasing Agreement; and WHEREAS, the County and the City of Shorewood are parties to a prior agreement numbered A-052276 relating to the lease of election equipment and the County and City desire to terminate that lease agreement and replace it with this agreement. WHEREAS, the County desires to lease Election Equipment and AVT Equipment (as defined herein) to the City of Shorewood for use in all city elections. NOW THEREFORE, in consideration of the mutual undertakings and agreements hereinafter set forth, the County and the City agree as follows: Section 1 SCOPE OF AGREEMENT 1.1 The County hereby leases to the City at the cost identified below and subject to the terms and conditions of this Agreement, and the City hereby agrees to lease from the County election equipment identified as: five (5) DS200 Digital Scan Precinct Count Units (including ten (10) 4 GB Jump Drives), and five (5) DS200 Plastic Ballot Boxes (the “Election Equipment”) for polling places contained within the City. Page 1 of 8 1.2 The County hereby leases to the City subject to the terms and conditions of this Agreement, and the City hereby agrees to lease from the County AVT Equipment identified as: five (5) AutoMARK Voter Assist Terminals, ten (10) flashcards and five (5) ES&S AutoMARK Tables with adjustable legs for polling places (“AVT Equipment”) contained within the City. 1.3 Subject to the terms and conditions of this Agreement, the parties may agree by written addendum executed by all the parties to increase or decrease the County Election Equipment and AVT Equipment included within the scope of this agreement. Hennepin County hereby delegates authority to execute such an addendum to the County Auditor. The City hereby delegates authority to execute such an addendum to the authorized City officer, or the City Council, as appropriate. 1.4 Upon the express written permission of County’s Election Manager, or her/his designee, the City may lease Election Equipment and/or AVT Equipment to a school district. Said lease shall be made pursuant to a written agreement, between the City and the school district, which includes substantially the same terms as those contained herein. Section 2 OWNERSHIP 2.1 The City acknowledges that the County owns the Election Equipment and AVT Equipment and that the City is authorized to use said Election Equipment and AVT Equipment for official election related purposes. Use of the Election Equipment and AVT Equipment for any other purpose is strictly prohibited absent express written consent of the County. 2.2 The City acknowledges and agrees that the Election Equipment and AVT Equipment may contain proprietary and trade secret information that is owned by a third party and is protected under state and federal copyright law or other laws, rules, regulations and decisions. The City shall protect and maintain the proprietary and trade secret status of the Election Equipment and AVT Equipment. Section 3 HANDLING OF EQUIPMENT AND INDEMNIFICATION 3.1 The City shall be responsible for the Election Equipment and AVT Equipment while it is in the City’s custody, possession or control. The City, either through insurance or a self-insurance program, shall be responsible for all costs, fees, damages and expenses including but not limited to personal injury, storage, damage, repair and/or replacement of the Election Equipment and AVT Page 2 of 8 Equipment while it’s in the City’s custody and this Agreement is in effect, consistent with the City’s defense and indemnity obligations contained in Section 7.6 herein. 3.2 The City shall be responsible for the transporting of the Election Equipment and AVT Equipment from and to the County. The City shall be responsible for all costs, including but not limited to shipping, related to the repair or replacement of lost, stolen, destroyed or damaged Election Equipment and AVT Equipment as well as the maintenance and repair costs described in Sections 5.1 and 5.2. Section 4 TERM, TERMINATION 4.1 This Agreement commences September 1, 2013 and expires August 31, 2014. Thereafter, this Agreement shall automatically renew for additional one year st periods unless either party notifies the other party, on or before June 1 of that year, of its intention not to renew. Termination of this Agreement by the City shall not relieve the City of any duties or obligations hereunder including but not limited to the obligation to pay amounts due and payable. Upon expiration or any termination of this Agreement, the City shall return the Election Equipment and/or AVT Equipment within a reasonable time and in good operating condition except for routine wear and tear. Section 5 MAINTENANCE Maintenance Agreement (DS200) 5.1 The County has entered into an agreement with a third-party (“Maintenance Vendor”) for maintenance and repair of the Election Equipment as more fully described in Addendum A (“Maintenance Services). The City will obtain Maintenance Services for the Election Equipment directly from the Maintenance Vendor including but not limited to scheduling and supervising the Maintenance Vendor. City shall pay County the per unit amount that County pays to the Maintenance Vendor plus any additional costs incurred by County as the same are directly related to maintenance and repair of the Election Equipment leased by the City which may include the cost of replacement parts. Maintenance Agreement (AVT Equipment) 5.2 . The County has entered into an agreement with a third-party (“AVT Maintenance Vendor”) for maintenance and repair of the AVT Election Equipment (“AVT Maintenance Services). The City will obtain AVT Maintenance Services for the AVT Election Equipment directly from the AVT Maintenance Vendor including but not limited to scheduling and supervising the AVT Maintenance Vendor. City shall pay County the per unit amount that County pays to the AVT Maintenance Vendor plus any additional Page 3 of 8 costs incurred by County as the same are directly related to maintenance and repair of the AVT Election Equipment leased by the City which may include the cost of replacement parts. 5.3 The City agrees not to make any repairs, changes, modifications or alterations to the Election Equipment or AVT Equipment that are not authorized by Hennepin County and said vendors. 5.4 After reasonable notice, the County shall have the right to enter into and upon the premises where the Election Equipment and AVT Equipment is located for the purposes of inspecting the same or observing its use. On an annual basis, during the term of this Agreement, the City shall comply with the County’s request for verification of Election Equipment and AVT Equipment inventory. 5.5 The City agrees to provide notice to Maintenance Vendor and/or AVT Maintenance Vendor of any defects or malfunctions with the Election Equipment and/or AVT Equipment within twenty-four (24) hours. The City also agrees to provide the County with notice of such malfunctions or defects and the Maintenance Vendor and/or AVT Maintenance Vendor response within a reasonable time. Section 6 PROGRAMMING AND ACCUMULATION Programming 6.1. The County will be responsible for programming the DS200 Digital Scan Election Equipment at no charge to jurisdictions for all races in all elections. Programming Costs 6.2 . The City is responsible for paying to the County the programming costs of the AVT Equipment described in paragraph 1.2 at an amount prorated upon the number of columns devoted to the City’s races on the ballot. Results Transmission and Accumulation 6.3 . The County has invested a significant amount of resources in equipment that allows the DS200 Digital Scan tabulators to electronically transmit election results via wireless technology from each polling place to a central location and for those results to be accumulated and posted on the County’s website. There is also a significant operational cost associated with each use of this transmission and accumulation process. 6.4 For Cities with a primary and/or a general election, as described in Minn. Stat. §§ 205.065 and 205.07, in the even-numbered years, the County will provide results transmission and accumulation of results of City races in the primary and general election at no cost to the City. 6.5 For Cities with a primary and/or a general election, as described in Minn. Stat. §§ 205.065 and 205.07, in the odd-numbered years, upon written request by the Page 4 of 8 city, the County will perform the electronic transmission and accumulation of results of City races in the primary and general election, at a cost of $100 per polling place for the primary, and $100 per polling place for the general election. The County will not perform the electronic transmission and accumulation of votes cast in any other City elections, unless by mutual agreement with the City. The County may, in its sole discretion, elect to waive this fee. Section 7 OTHER TERMS AND CONDITIONS No Waiver. 7.1 No delay or omission by either party hereto to exercise any right or power occurring upon any noncompliance or default by the other party with respect to any of the terms of this Agreement shall impair any such right or power or be construed to be a waiver thereof unless the same is consented to in writing. A waiver by either of the parties hereto of any of the covenants, conditions, or agreements to be observed by the other shall not be construed to be a waiver of any succeeding breach thereof or of any covenant, condition, or agreement herein contained. All remedies provided for in this Agreement shall be cumulative and in addition to, and not in lieu of, any other remedies available to either party at law, in equity, or otherwise. Governing Law. 7.2 This Agreement shall be governed by and construed in accordance with the laws of the State of Minnesota. Entire Agreement. 7.3 It is understood and agreed that the entire Agreement between the parties is contained herein and that this Agreement supersedes all oral agreements and negotiations between the parties relating to the subject matter hereof. Pursuant to the foregoing, the parties acknowledge and agree that Agreement A-052276 between the parties is hereby teminated and replaced with this Agreement. All items referred to in this Agreement are incorporated or attached and are deemed to be part of this Agreement. Any alterations, variations, modifications, or waivers of provisions of this Agreement shall only be valid when they have been reduced to writing as an amendment to this Agreement signed by the parties hereto. No Assignment. 7.4 Neither party shall assign, sublet or transfer this Agreement, either in whole or in part, without the prior written consent of the other party, and any attempt to do so shall be void and of no force and effect. Limited Warranty. 7.5 County warrants that it owns title to the Election Equipment and AVT Equipment, or to the extent it does not own title, that it has all rights necessary to grant the licenses herein. Page 5 of 8 No Warranty. 7.6 COUNTY IS PROVIDING THE ELECTION EQUIPMENT AND AVT EQUIPMENT ON AN AS-IS BASIS WITH NO SUPPORT WHATSOEVER. THERE IS NO WARRANTY OF MERCHANTABILITY, NO WARRANTY OF FITNESS FOR PARTICULAR USE, NO WARRANTY OF NON- INFRINGEMENT, NO WARRANTY REGARDING THE USE OF THE INFORMATION OR THE RESULTS THEREOF AND NO OTHER WARRANTY OF ANY KIND, EXPRESS OR IMPLIED. Pursuant to the foregoing, the City agrees that the County is furnishing the Election and AVT Equipment on an “as is” basis, without representation or any express or implied warranties, other than those provided by the Maintenance Vendor and/or AVT Maintenance Vendor, including but not limited to, fitness for particular purpose, merchantability or the accuracy and completeness of the Election Equipment or AVT Equipment. The County does not warrant that the Election Equipment and/or AVT Equipment will be error free. The County disclaims any other warranties, express or implied, respecting this agreement or the Election or AVT Equipment. The City’s exclusive remedy and the County’s sole liability for any substantial defect which impairs the use of the Election Equipment and/or AVT Equipment for the purposes stated herein shall be the right to terminate this Agreement. 7.7 IN NO EVENT SHALL THE COUNTY BE LIABLE FOR ACTUAL, DIRECT, INDIRECT, SPECIAL, INCIDENTAL, CONSEQUENTIAL DAMAGES (EVEN IF THE COUNTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGE) OR LOSS OF PROFIT, LOSS OF BUSINESS OR ANY OTHER FINANCIAL LOSS OR ANY OTHER DAMAGE ARISING OUT OF PERFORMANCE OR FAILURE OF PERFORMANCE OF THIS AGREEMENT BY THE COUNTY. The County and the City agree each will be responsible for their own acts and omissions under this Agreement and the results thereof including but not limited to the acts or omissions of the party’s subcontractors, employees and other personnel and shall to the extent authorized by law defend, indemnify and hold harmless the other party from any liability, claims, causes of action, costs or expenses resulting directly or indirectly from such acts and/or omissions. Each party shall not be responsible for the acts, errors or omissions of the other party under the Agreement and the results thereof. The parties’ respective liabilities shall be governed by the provisions of the Municipal Tort Claims Act, Minnesota Statutes Chapter 466, and other applicable law. The statutory limits of liability for some or all of the parties may not be added together or stacked to increase the maximum amount of liability for any party. This paragraph shall not be construed to bar legal remedies one party may have for the other party’s failure to fulfill its obligations under this Agreement. Nothing in this Agreement constitutes a waiver by the City or County of any statutory or common law defenses, immunities, or limits on liability. Page 6 of 8 Notice. 7.8 Any notice or demand shall be in writing and shall be sent registered or certified mail to the other party addressed as follows: To the City: City of Shorewood 5755 Country Club Road, Shorewood, MN 55331 To the County: Hennepin County Administrator A-2300 Government Center (233) Minneapolis, MN 55487-0233 Copy to: Mark Chapin Director, Taxpayer Services Department A-600 Government Center (060) Minneapolis, MN 55487-0060 Audit Provision. 7.9 Both parties agree that either party, the State Auditor, or any of their duly authorized representatives at any time during normal business hours, and as often as they may reasonably deem necessary, shall have access to and the right to examine, audit, excerpt, and transcribe any books, documents, papers, records, etc., which are pertinent to the accounting practices and procedures of the other party and involve transactions relating to this Agreement. Such materials shall be maintained and such access and rights shall be in force and effect during the period of the contract and for six (6) years after its termination or cancellation. Whereas Clauses. 7.10 The matters set forth in the “Whereas” clauses on page one of this Agreement are incorporated into and made a part hereof by this reference. Survival of Provisions. 7.11 It is expressly understood and agreed that the obligations and warranties of the City and County hereof shall survive the completion of performance and termination or cancellation of this Agreement. Authority. 7.12 The person or persons executing this Lease Agreement on behalf of the City and County represent that they are duly authorized to execute this Lease Agreement on behalf of the City and the County and represent and warrant that this Lease Agreement is a legal, valid and binding obligation and is enforceable in accordance with its terms. 7.13 The parties shall comply with applicable law including but not limited to the provisions of the Minnesota Government Data Practices Act, Minnesota Statutes, . Chapter 13 (MGDPA) THE REMAINDER OF THIS PAGE IS BLANK. Page 7 of 8 AUTHORIZATION COUNTY OF HENNEPIN Reviewed by the County STATE OF MINNESOTA Attorney’s Office By: Assistant/Deputy/County Administrator Department Director of Date: Date: CITY OF Shorewood By: Its: And: Its: City organized under: Statutory_____ Option A_____ Option B_____ Charter_____ Page 8 of 8 Addendum A Post Warranty Maintenance and Support Services 1.Term;Termination. This Addendum A for Hardware Maintenance and Software Maintenance and Support Services shall be in effect for the coverage period as described in Schedule 5-1 (the "Initial Term"). Upon expiration of the Initial Term, this Addendum A shall automatically renew for an unlimited number of successive Two Year Periods (each a "Renewal Period") until this Agreement is terminated by the first to occur of (a) either party's written election not to renew, which shall be delivered to the other party at least thirty (30) days prior to the end of the Initial Term or any Renewal Period, as applicable, (b) the date which is thirty (30) days after either party notifies the other that it has materially breached this Agreement, if the breaching party fails to cure such breach (except for a breach pursuant to subsection (e), which will require no notice), (c) the date which is thirty (30) days after CONTRACTOR notifies COUNTY that it is no longer able to procure replacement parts that may be needed in order to perform the Hardware Maintenance Services contemplated hereunder, (d) the date on which the Equipment or firmware installed thereon is no longer certified by federal and/or state authorities for use in COUNTY's jurisdiction, or (e) the date which is thirty (30) days after COUNTY fails to pay any amount due to CONTRACTOR under this Agreement. Upon the termination of the license, COUNTY shall immediately return the Software and Documentation (including any and all copies thereof) to CONTRACTOR, or (if requested by CONTRACTOR) destroy the Software and Documentation and certify in writing to CONTRACTOR that such destruction has occurred. The termination of this Agreement shall not relieve COUNTY of its liability to pay any amounts due to CONTRACTOR hereunder and shall only entitle COUNTY to a prorated refund of any fees already paid to CONTRACTOR in the event that this is Agreement is terminated pursuant to subsection 1(c) or 1(d) above. 2.Fees. In consideration for CONTRACTOR's agreement to provide Hardware Maintenance and Software Maintenance and Support Services under this Agreement, COUNTY shall pay to CONTRACTOR the Hardware Maintenance and Software Maintenance and Support Fees set forth on Schedule 5-1 for the Initial Term. The Hardware Maintenance and Software Maintenance and Support Fees for any Renewal Period shall be as agreed to by the parties and such fees will not exceed CONTRACTOR's list prices which are in effect at the time of commencement of such Renewal Period. The Renewal Period fees are due and payable no later than thirty (30) days prior to the beginning of such renewal period. The Software Maintenance and Support Fees shall be comprised of (I) a fee for the Software Maintenance and Support of the CONTRACTOR Firmware, and (II) a fee for the Software Maintenance and Support for all other CONTRACTOR Software, and shall be in addition to any fees or , elects to receive Hardware charges separately referred to In any Section of this Agreement. If COUNTY Maintenance or Software Maintenance and Support for an Add-On License or New Product during the Initial Term or any renewal thereof, CONTRACTOR will charge an incremental fee for such services. In the event. COUNTY terminates this Agreement through no fault of CONTRACTOR and later desires to subscribe to a Hardware Maintenance or Software Maintenance and Support Plan, or otherwise changes its Hardware Maintenance or Software Maintenance and Support Plan with CONTRACTOR during the Initial Term or any renewal thereof, CONTRACTOR will charge the COUNTY its then current contract administration fee in order to process such new subscription for, or change in, Hardware Maintenance or Software Maintenance and Support Coverage. ARTICLE II HARDWARE 1. Maintenance Services. The Hardware Maintenance Services to be provided to COUNTY under this Agreement for the CONTRACTOR equipment listed on Schedule 5-1 is set forth on Schedule 5-1 (the "Products") and shall be subject to the following terms and conditions: a. Routine Maintenance Services. A CONTRACTOR Representative shall provide such services as may be necessary to keep the Products in Normal Working Condition ('Routine Maintenance Services") once each Twenty-Four (24) Months during the Initial Term or any renewal thereof. Generally, Routine Maintenance Services shall include cleaning, lubrication, diagnostic check, and calibration services. The Routine Maintenance Services shall not include the repair or replacement of any CONTRACTOR Equipment components that are consumed in the normal course of operating the 32 Equipment, including, but not limited to, paper rolls, batteries, removable media storage devices, PCMCIA cards, ink pads, ink cartridges or marking devices. COUNTY may request that Routine Maintenance Services be performed more than once during the initial Term or any Renewal Period. Any such request shall be made at least sixty (60) days before the Routine Maintenance Services are desired. The per-unit fee for such additional Routine Maintenance Services is set forth on Schedule 5-1 and shall be due within thirty (30) days after invoice date. At the request of COUNTY, CONTRACTOR shall provide a reasonably detailed record of all Routine Maintenance Services performed with respect to the Products. CONTRACTOR will schedule the Routine Maintenance Services with COUNTY. The Routine Maintenance Services will be provided at COUNTY's Designated Location. COUNTY's "Designated Location" shall mean COUNTY's owned or leased facility at which COUNTY desires CONTRACTOR to perform the Hardware Maintenance Services, such locations may not be COUNTY owned or leased facilities and may Include city halls_ COUNTY acknowledges and agrees that the performance of Routine Maintenance Services for Product(s) identified on Schedule 5-1 as "depot repair only" shall only be provided pursuant to Section 1(b) below. b. Repair Services. I. Defects Under Normal Use and Service. If a defect or malfunction occurs in any Product while it is under normal use and service, COUNTY shall promptly notify CONTRACTOR, and CONTRACTOR shall use reasonable efforts to restore the item to Normal Working Condition as soon as practicable. The services provided by CONTRACTOR pursuant to this Subsection 1(b)(i) are referred to herein as "Repair Services". CONTRACTOR will perform Repair Services in conjunction with a preventative maintenance event as follows: Repair Services for Products covered under this Agreement will be performed at COUNTY's Designated Location. Defects Due to COUNTY Actions or Omissions. If a defect or malfunction occurs in any Product as a result of (1) repairs, changes, modifications or alterations not authorized or approved by CONTRACTOR, (2) accident, theft, vandalism, neglect, abuse or use that is not in accordance with instructions or specifications furnished by CONTRACTOR or (3) causes beyond the reasonable control of CONTRACTOR or COUNTY, including acts of God, fire, flooding, riots, acts of war, terrorism or insurrection, labor disputes, transportation delays, governmental regulations, and utility or communication interruptions, rodent infestation, or if COUNTY does not notify CONTRACTOR within 24 hours after it knows of the defect or malfunction or is otherwise not in compliance with its obligations hereunder, COUNTY shall pay CONTRACTOR for the Repair Services at CONTRACTOR'S then-current rates, as well as for the cost of all parts used in connection with such Repair Services. iii.Timing. The date(s) on which any Repair Services shall be provided shall be mutually agreed upon by CONTRACTOR and COUNTY. If COUNTY requires CONTRACTOR to provide "emergency" Repair Services (which shall be defined as Repair Services that are provided within 48 hours after COUNTY notifies CONTRACTOR of the need therefor), and such emergency Repair Services are not needed as a result of an action, error or omission by CONTRACTOR, COUNTY shall pay a surcharge, as set forth on Schedule 5-1, iv.Loaner Unit. At COUNTY's request and if such product is available, CONTRACTOR shall use reasonable efforts to promptly make available to COUNTY a product that is the same as, or substantially similar to, the Product for which Repair Services are being performed (a "Loaner Unit"). If the Repair Services are being performed pursuant to Subsection 1(4)(11) above, COUNTY shall pay CONTRACTOR for the use of the Loaner Unit at CONTRACTOR's then-current rates including the cost of shipping. c. Exclusions. CONTRACTOR has no obligation under this Agreement to (i) assume the obligations under any existing or expired warranty for a Third Party Item; (ii) repair or replace Product 33 components that are consumed in the normal course of operating the Product, including, but not limited to, paper rolls, batteries, removable media storage devices, PCMCIA cards, ink pads, ink cartridges or marking devices, or (iii) repair any Product from which the serial number has been removed or altered. In addition, CONTRACTOR may, at any time in its discretion, determine that any Product is no longer fit for Hardware Maintenance Services because it is in such poor condition that it cannot practically be restored to Normal Working Condition, or cannot be restored to Normal Working Condition at an expense that is less than the then-current value of the Product. If such a determination is made, CONTRACTOR shall no longer be required to provide Hardware Maintenance Services for such Product. CONTRACTOR shall also refund to COUNTY an amount equal to (1) that portion of the most recent fee paid for Hardware Maintenance Services that is attributable to such Product, multiplied by (2) a fraction, the numerator of which is the remaining number of days in the respective period within the Initial Term or Renewal Period for which such fee was paid and the denominator of which is the total number of days in respective period within such Initial Term or Renewal Period. COUNTY shall not permit any individual other than an d. Sole Access. Provider; CONTRACTOR Representative to provide maintenance or repairs with respect to the Products for so long as the Initial Term or any Renewal Period is in effect. COUNTY shall provide CONTRACTOR Representatives with all information necessary to enable them to provide Hardware Maintenance Services. COUNTY shall likewise provide full access to the Products and adequate working space for all , Hardware Maintenance Services performed at its Designated Location, including sufficient heat, lights, ventilation, electric current and outlets. When not in use, Products should be stored in a clean, secure environment. e. Storage. During operation of the Products, the facility temperature range should be 50° to 104 and the moisture range should be 10% to 50% relative humidity. If the Initial Term or f. Reinstatement of Hardware Maintenance Services; Inspection. any renewal thereof expires without being renewed, COUNTY may thereafter resume receiving Hardware Maintenance Services upon (a) notification to CONTRACTOR and (b) the granting to CONTRACTOR of access to the Products. CONTRACTOR requires COUNTY to allow it to inspect such Products before it provides any Hardware Maintenance Services. The purpose of such inspection shall be to determine whether or not the Products are fit for the ordinary purpose for which they are to be used, normal wear and tear excepted ("Normal Working Condition"). The cost of such inspection will be at the current published CONTRACTOR Technician labor rate and shall be due from COUNTY within thirty (30) days of its receipt of CONTRACTOR's invoice therefore. If any of the Products is not in Normal Working Condition, CONTRACTOR, at the option of COUNTY, (I) shall provide such repairs and replacements as it deems reasonable and necessary to restore such item to Normal Working Condition, at COUNTY's expense with respect to the cost of any labor (charged at the current published CONTRACTOR Technician labor rate) and parts used in such repairs or' replacements, or (ii) shall not provide any Hardware Maintenance Services with respect to such Product(s). ARTICLE III SOFTWARE MAINTENANCE AND SUPPORT SERVICES provide maintenance and support services ("Software 1. Services Provided. CONTRACTOR shall Maintenance and Support") for the CONTRACTOR Software and CONTRACTOR Firmware (collectively, "CONTRACTOR Software"), to enable it to perform in accordance with its Documentation in all material respects, and to cure any defect in material or workmanship. The specific Software Maintenance and Support services provided by CONTRACTOR and each party's obligations with respect to such services are set forth on Schedule 5-1. During the Initial Term and any Renewal Period thereof, CONTRACTOR may provide 2. Updates. new releases, upgrades or maintenance patches to the CONTRACTOR Software, along with appropriate documentation ("Updates"), on a schedule defined by CONTRACTOR. COUNTY is responsible for obtaining and 34 Installing any upgrades or purchases of third party hardware or software required to operate the Updates. All Updates shall be deemed to be "Software", and shall be subject to all the terms and conditions of CONTRACTOR's license of the Software, upon delivery. COUNTY shall install Updates in accordance with CONTRACTOR's recommended instructions or may request that CONTRACTOR install the Updates. In the event COUNTY requests CONTRACTOR to install an CONTRACTOR Firmware Update, CONTRACTOR shall install such Update only in connection with the Routine Maintenance Services provided herein. CONTRACTOR may charge COUNTY at its then-current rates to (a) ship the Updates, (b) install the Updates (c) provide maintenance and support on the Software which is required as a result of COUNTY's failure to timely install an Update or (d) train the COUNTY on the Updates. COUNTY shall be responsible for any claim, damage, loss, judgment, penalty, cost, amount paid in settlement or fee which Is caused by COUNTY's failure to install and use the most recent Update provided to it by If COUNTY proposes changes in the Software to CONTRACTOR, such proposals will become CONTRACTOR. CONTRACTOR'S property. may, in its sole discretion, elect to make or not to make such changes CONTRACTOR without reference or compensation to COUNTY or any third party. CONTRACTOR represents to COUNTY that the Updates will comply with all applicable state law requirements at the time of delivery. COUNTY shall be responsible to ensure that it has Installed and is using only certified versions of Software in accordance with applicable law. COUNTY shall pay CONTRACTOR for any Update which is required due to a change in federal or state law. 3.Conditions. CONTRACTOR shall not provide Software Maintenance and Support for any item of Software if such item requires such services as a result of (a) repairs, changes, modifications or CONTRACTOR alterations not authorized or approved by CONTRACTOR, (b) accident, theft, vandalism, neglect, abuse or use that is not in accordance with instructions or specifications furnished by CONTRACTOR, (c) causes beyond the reasonable control of or COUNTY, including acts of God, fire, riots, acts of war, terrorism or CONTRACTOR insurrection, labor disputes, transportation delays, governmental regulations and utility or communication interruptions, (d) COUNTY's failure to timely and properly install and use the most recent update provided to it by CONTRACTOR, (e) COUNTY'S failure to notify CONTRACTOR within 24 hours after COUNTY knows of the need for such services, or (f) if COUNTY is otherwise not in compliance with its obligations under this Agreement. Any such Software Maintenance and Support shall be provided at the fees to be agreed upon by the parties if and when the need for such Software Maintenance and Support arises. Replacement versions of Software requested by COUNTY as a result of items set forth in this Section 3 or as a result of COUNTY'S actions or inactions shall be billable to COUNTY at CONTRACTOR's then current rates. 4.Proprietary Rights. CONTRACTOR shall own the entire right, title and interest In and to all corrections, programs, information and work product conceived, created or developed, alone or with COUNTY or others, as a result of or related to the performance of this Agreement, including all proprietary rights therein or based thereon. Subject to the payment of all Software Maintenance and Support Fees, CONTRACTOR hereby grants to COUNTY a non-exclusive license to use that portion of such corrections, programs, information and work product that CONTRACTOR actually delivers to COUNTY pursuant to this Agreement. All licensed items shall be deemed to be CONTRACTOR Software for purposes of this Agreement. Except and to the extent expressly provided herein, CONTRACTOR does not grant to COUNTY any right, license, or other proprietary right, express or implied, in or to any corrections, programs, information, or work product covered by this Agreement. 5.Reinstatement of Software Maintenance and Support. if the Initial Term or any Renewal Period thereof expires without being renewed, COUNTY may thereafter resume receiving Software Maintenance and Support upon (a) notification to CONTRACTOR, (b) payment of all fees, including a reinstatement charge, which would have been due to CONTRACTOR had the Initial Term or any Renewal Period not expired, and (o) the granting to CONTRACTOR of access to the CONTRACTOR Software, so that CONTRACTOR may analyze it and perform such maintenance as may be necessary before resuming the Software Maintenance and Support. 35 Schedule 5-1 CONTRACTOR HARDWARE MAINTENANCE FEES Initial Maintenance Term: Five (5) Years Beginning Upon Expiration of the Warranty Period Annual Annual Maintenance Fee Maintenance Fee Qty Description Per Unit in Total $102,960.00 550 DS200 Scanner $187.20 $13,863.60 4DS850 Scanner $3,465.90 $116,823.60 Total Annual Hardware Maintenance Fees for the Initial Term Note 1: The Per-Unit Fees If COUNTY requests more than one Routine Maintenance visit in a 24-month period shall be 55% of the then current maintenance fee per unit. Note 2: Surcharge for Emergency Repair Services shall be 150% of the then current maintenance fee per unit. Note 3: COUNTY's Designated Locations: To be provided by the COUNTY Note 4: Upon expiration of the Initial Maintenance Term, this Agreement shall automatically renew for an unlimited number of successive two-year periods (each a "Renewal Period") until this Agreement is terminated according to Article I, Section 1. Hardware Maintenance Services Provided by CONTRACTOR Under the Agreement 1. Telephone support. CONTRACTOR will provide Hardware support on procedural questions of a specific nature not covered in CONTRACTOR's Hardware User Manuals; CONTRACTOR will verify the appropriate steps to take to resolve Issues identified by the COUNTY. 2. Issue Resolution. (to be provided on a limited basis) CONTRACTOR will provide Hardware issue resolution on a limited basis once the COUNTY has followed all issue resolution procedures as set forth in the Equipment User Manuals and as directed in the required training course. If it becomes apparent that the COUNTY has not followed the appropriate Equipment User Manual and/or training directives, COUNTY will be advised to begin the issue resolution process over by following the procedures identified in the Equipment User Manuals or by utilizing CONTRACTOR Election Services. The COUNTY may also be advised that additional training may be necessary to ensure the COUNTY has the appropriate level of issue resolution training. 3. CONTRACTOR posts Technical Bulletins available through COUNTY's CONTRACTOR Web-based portal. 36 4. Routine Maintenance Services. Onsite scheduled maintenance inspection per Article 2, Section la. The inspection includes: Service performed by an CONTRACTOR trained and certified technician. o Performance of factory approved diagnostics on the unit, identifying and making o adjustments where necessary as indicated by the testing. Replacement of worn or defective with new or remanufactured federally and state o certified parts. Conducting a final test to verify that the unit is working according to manufacturer's o specifications. Use of a checklist tailored for each piece of equipment. o Update of maintenance records which are kept by serial number and available to you o through your CONTRACTOR Web-based portal. 5. Repair Services. COUNTY receives coverage for interim repair calls. Interim calls may be scheduled during the regular Routine Maintenance Services event or o scheduled in conjunction with other service work being performed in dose proximity of COUNTY's location if they are not election critical. A Product may be sent to CONTRACTOR's Depot location for repairs at a time to be o mutually agreed upon by CONTRACTOR and COUNTY. 6. Priority Services. COUNTY has access to the CONTRACTOR Help Desk for assistance. The customer receives priority on service calls. The customer receives priority on response time. The customer receives priority on certified CONTRACTOR parts inventory. Note: Except for those Hardware Maintenance Services specifically set forth herein, CONTRACTOR is under no obligation and shall not provide other Hardware Maintenance Services to the COUNTY unless previously agreed upon in writing by the parties. 37 CONTRACTOR SOFTWARE MAINTENANCE AND SUPPORT FEES Initial Maintenance Term: Five (51 Years Beginning Upon Expiration of the Warranty Period Listed below are the Unity Software Modules and Fees for which Software Maintenance and Support will be provided: Annual Softwar e Maintenance and Support Qty Description 1$41,998.00 Total Annual Software Maintenance and Support Fees for the Initial Term $41,998.00 Listed below are the Hardware Products and Fees for which Firmware Maintenance and Support will be provided: Qty Description Annual Firmware Annual Firmware Maintenance and Maintenance and Support Fee In Total Support Unit Fee Per Included in HardwarIncluded in Hardwar ee 550 DS200 Scanner Maintenance Fee Maintenance Fee Included in HardwarIncluded in Hardwar ee 4 DS850 Scanner Maintenance Fee Maintenance Fee Included In Hardware Total Annual Firmware Maintenance and Support for the Initial Term Fees Maintenance Fee Software Maintenance and Support Services Provided by CONTRACTOR Under the Agreement 1. Telephone support. CONTRACTOR will provide Software support on procedural questions of a specific nature not covered in CONTRACTOR'S Software User Manuals; CONTRACTOR will verify the appropriate steps to take to resolve issues identified by the COUNTY. 2. Issue Resolution. (to be provided on a limited basis) CONTRACTOR will provide Software issue resolution on a limited basis once the COUNTY has followed all issue resolution procedures as set forth in the Software User Manuals and as directed in the required training course. If it becomes apparent that the COUNTY has not followed the appropriate Software User Manual and/or training directives, COUNTY will be advised to begin the issue resolution process over by following the procedures identified in the Software User Manuals or by utilizing CONTRACTOR Election Services, The COUNTY may also be advised that additional training may be necessary to ensure the COUNTY has the appropriate level of issue resolution training. 38 3. CONTRACTOR will provide Technical Bulletins available on the CONTRACTOR COUNTY Portal on a schedule to be determined by CONTRACTOR regarding specific issues the COUNTY may be experiencing. Note: Except for those Software Maintenance and Support services specifically set forth herein, CONTRACTOR is under no obligation and shall not provide other Software Maintenance and Support services to the COUNTY unless previously agreed upon by the parties. Software Maintenance and Support and Hardware Maintenance and Swoon Services— COUNTY Responsibilities 1. COUNTY's current software and hardware operator shall have completed a full software training session for each product selected. COUNTY shall have completed training at a proficiency level to successfully use hardware (firmware) and software products for General and Primary elections. COUNTY shall have the ability to install firmware and application software and make changes to date and time settings. drCOUNTY shall have the ability to store equipment in accordance with CONTRACTOR requirements. 2.COUNTY shall have reviewed a complete set of User Manuals. 3.COUNTY shall have reviewed Training Checklists. 4.COUNTY shall be responsible for integration of any third party hardware or software application or system purchased by the customer, unless otherwise agreed upon, in writing, by the parties. 5.COUNTY shall be responsible for data extraction from COUNTY VR system. 6.COUNTY shall be responsible for implementation of any security protocols physical, network or otherwise. 7.COUNTY shall be responsible for COUNTY Acceptance of the hardware, unless otherwise agreed upon, in writing, by the parties. 8.COUNTY shall be responsible for any error or exception handling not identified in the User Guides as part of CONTRACTOR software or hardware. 9.COUNTY shall be responsible for customer network design, layout, set up, administration, maintenance or connectivity. 10.COUNTY shall be responsible for all costs associated with diagnosing ballot printing problems resulting from the use of non-CONTRACTOR Ballot Partner Printers ballots. 39 CITY OF SHOREWOOD RESOLUTION NO. 13-____ A RESOLUTION APPROVING LEASE AGREEMENT A-131264 BETWEEN HENNEPIN COUNTY AND THE CITY OF SHOREWOOD WHEREAS , Hennepin County has purchased new election equipment for a countywide digital scan voting system; and WHEREAS , Hennepin County will lease one unit of election equipment, related hardware and services, for each precinct and for use in absentee voting in the City of Shorewood as stated in the attached Lease Agreement No. A-131264; and WHEREAS , the City of Shorewood desires to lease five (5) Model DS200 Digital Scan Precinct Count Units, five (5) AutoMARK Voter Assist Terminals, and related hardware and services from Hennepin County for use in all city elections; NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Shorewood, Minnesota: That the Mayor and City Administrator are authorized to execute Lease Agreement No. A-131264 with Hennepin County for election equipment and related hardware and services, for use in all city elections. ADOPTED BY THE CITY COUNCIL OF THE CITY OF SHOREWOOD this 12th day of August, 2013. Scott Zerby, Mayor ATTEST: br Jean Panchyshyn, City Clerk #3D MEETING TYPE City of Shorewood Council Meeting Item Regular Meeting Title / Subject: Recording Secretary Services Agreement Meeting Date: August 12, 2013 Prepared by: Bill Joynes, City Administrator CC: Tim Keane, City Attorney Attachments: Proposed Agreement Policy Consideration: Consideration of Revised Agreement for Recording Secretary Services Background: Independent Contractor Christine Freeman has served as Recording Secretary for the City Council and Planning Commission meetings since November, 2005. She has requested one rate increase since that time, making this the second rate increase proposed by Ms. Freeman. Staff recently met with Ms. Freeman to discuss a new rate structure. Her proposed rate of $250 for meetings up to 3 hours is consistent with what she charges her other clients-- the City of Greenwood, the Excelsior Fire District, and the South Lake Minnetonka Police Department. Should there be a Work Session on the same night as a Regular Council meeting, an additional $50 will be charged per 30-minute Work Session. Meeting nights that are more than three hours in total time will be billed at $40 for each 30-minute period beyond three hours. It should be noted that certain meetings held on a Regular meeting night, such as meetings to conduct commissioner interviews, are currently billed at $55 per meeting to prepare the minutes. Under the new proposed structure, these would be prepared pro bono. Ms. Freeman provides detailed meeting minutes; Staff believes the proposed fee supports the time it takes to produce such detailed minutes. Financial or Budget Considerations: Sufficient funds were allocated in the 2013 Budget for Recording Secretary Services in anticipation of a rate increase for this service in 2013. The change in the fee structure results in an average increase of approximately $28 per meeting for meetings held to date in 2013. Options:  Approve the Recording Secretary Service Agreement with Ms. Christine Freeman, as provided.  Provide other direction to Staff Recommendation / Action Requested: Staff recommends approval of the Recording Secretary Service Agreement with Ms. Christine Freeman, as provided. Next Steps and Timelines: The Agreement is for a two-year term, January 1, 2013 – December 31, 2014. Connection to Vision / Mission: Production of the detailed meeting record provides a quality public service to residents. Mission Statement: The City of Shorewood is committed to providing residents quality public services, a healthy environment, a variety of attractive amenities, a sustainable tax base, and sound financial management through effective, efficient, and visionary leadership. Page 1 CITY OF SHOREWOOD RECORDING SECRETARY SERVICE AGREEMENT THIS AGREEMENT is made between Christine Freeman, 2240 Shadywood Road, Wayzata, MN 55391 (City Recorder), and the City of Shorewood, 5755 Country Club Road, Shorewood, Minnesota 55331 (Shorewood). Shorewood wishes to contract with City Recorder to provide recording secretarial services for all Shorewood City Council meetings and some or all of the Planning and/or Park Commission meetings. This agreement shall also encompass any special meetings that City Recorder is asked to attend. IT IS THEREFORE AGREED AS FOLLOWS: 1. Recording Secretary. City Recorder shall attend, record, and transcribe, and submit minutes of all regular Shorewood City Council meetings, and some or all of the regular Shorewood Planning and/or Park Commission meetings, as determined by City Staff. Minutes of each meeting shall be submitted within seven (7) days after each meeting to the City Clerk or to other such officer as the City Clerk may designate from time to time. 2. Equipment. Shorewood shall provide for each meeting at the meeting site, all tape recording equipment required to record the minutes of the meeting. City Recorder shall provide all equipment and materials necessary to transcribe and prepare the minutes and to take notes at a meeting. 3. Charges. City Recorder shall be paid for recording secretary services as follows: Length of Meetings Compensation * Up to 3 hours $250 Over 3 hours $40 for each additional 1/2 hour or portion thereof * For additional meetings held on the same night before or after the Regular City Council meeting, such as a Work Session, an additional $50 for up to 30-minutes, or $100 for meetings over 30 minutes will be paid. 4. Billing. Upon delivery to Shorewood of completed minutes, the City Recorder shall bill Shorewood, listing each meeting date attended. Shorewood agrees to submit each invoice with the next bill list or other applicable expense authorization list to be considered by the City Council or the authorizing official of the Council. 5. Cancellation. This Agreement may be canceled at any time by either party, subject to a thirty (30) day written notice. 6. Term. This Agreement shall become effective on January 1, 2013, and shall continue for a 2-year period, ending December 31, 2014. Dated: City Recorder Dated: Shorewood Mayor Shorewood City Administrator #7A MEETING TYPE City of Shorewood Council Meeting Item Regular Meeting Title / Subject: Badger Park Concept Plan Meeting Date: 12 August 2013 Prepared by: Brad Nielsen Reviewed by: Patti Helgesen Attachments: Planning Director’s Memorandum Policy Consideration: Should the City proceed with a revised master plan for Badger Park? Background: See attached staff report. Financial or Budget Considerations: Projected costs for Badger Park improvements are being reduced by approximately $143,500. Options: Do nothing; stay with the current Master Plan for Badger Park and the CIP for 2014; or direct the Park Commission and staff to elaborate on the proposed Concept Plan for Badger Park. Recommendation / Action Requested: The consensus of the Park Commission is that the proposed Concept Plan does a good job of tying the City Hall, Badger Park and the South Shore Community Center together better than the current Master Plan does, at a lower cost. It is recommended that the estimated costs included with the Concept Plan be used for budgeting and CIP purposes. Next Steps and Timelines: The Park Commission meets on 13 August, at which time they will discuss the Council’s direction. Connection to Vision / Mission: Healthy environment, attractive amenities and sound financial management Mission Statement: The City of Shorewood is committed to providing residents quality public services, a healthy environment, a variety of attractive amenities, a sustainable tax base, and sound financial management through effective, efficient, and visionary leadership. Page 1 #7B MEETING TYPE City of Shorewood Council Meeting Item Regular Meeting Title / Subject: Movie in the Park - Promotion Meeting Date: 12 August 2013 Prepared by: Brad Nielsen Policy Consideration: Should the City accept an offer from Joey Nova’s restaurant to promote the Movie in the Park Event? Background: An owner of Joey Nova’s restaurant proposed to advertise the Music in the Park event scheduled for September. The City would obtain printed post-it notes, announcing the event. JN would place them on pizza boxes being delivered two to three weeks before the event. They estimate sending out approximately 1000 pizza boxes a week. Financial or Budget Considerations: The cost of the post-it notes is $16 for 400. If we ordered 2000, the cost would $80. Options: Turn down JN’s offer; accept the offer; or do nothing. Recommendation / Action Requested: The Park Commission recommended that this was a cost effective way to advertise the event. Next Steps and Timelines: The event is scheduled for 13 September. We would obtain the post-it notes and have them distributed, starting around 26 August. Connection to Vision / Mission: Sound financial management. Mission Statement: The City of Shorewood is committed to providing residents quality public services, a healthy environment, a variety of attractive amenities, a sustainable tax base, and sound financial management through effective, efficient, and visionary leadership. Page 1 #9A MEETING TYPE City of Shorewood Council Meeting Item Regular Meeting Title / Subject: 2013 Bituminous Mill & Overlay Project, City Project 13-05 Meeting Date: August 12, 2013 Prepared by: Paul Hornby Reviewed by: Attachments: Plan Title Sheet, Resolution Approving Plans, specifications and Authorizing Advertisement for bids Background: As part of the City Capital Improvement Plan and Pavement Management Plan, the City budgets for the maintenance of roadways as part of the Bituminous Mill and Overly project. The 2013 Bituminous Mill and Overlay Project include Shore Road, Shady Hills Road, Shady Lane, McLain Road, and the Lift Station 6 access driveway. The 2013 Capital Improvement Plan budget includes $129,000 in the Street Reconstruction Fund for road maintenance as mill and overlays. The enclosed Resolution approves the project plans and specifications and authorizes the advertisement for bids. The opening of bids is scheduled for 10:00 a.m., Thursday, September 5, 2013. Options: 1.Approve the resolution Approving Plans, Specifications and Authorizing Advertisement for Bids for Bituminous Mill & Overlay of Streets for 2013. 2.Direct staff to modify plans. 3.Take no action on this item. Recommendation / Action Requested: Staff recommends approval of the Resolution to Approve Plans and Specifications, Authorize Advertisement for Bids for City Project 13-05, 2013 Bituminous Mill & Overlay. Mission Statement: The City of Shorewood is committed to providing residents quality public services, a healthy environment, a variety of attractive amenities, a sustainable tax base, and sound financial management through effective, efficient, and visionary leadership. Page 1 Xrefs:, 2007ADDRESSMAP Drawing name: K:\n-z\Shorewood\15239000\muni\C3D13-2013Mill&Overlay\PlanSet\Sh01-cover.dwg Plot Date: 08/01/2013 CITY OF SHOREWOOD RESOLUTION NO. 13-___ A RESOLUTION APPROVING SPECIFICATIONS AND AUTHORIZATION FOR ADVERTISEMENTS FOR BIDS 2013 BITUMINOUS MILL & OVERLAY CITY PROJECT 13-05 WHEREAS , the City of Shorewood designated $129,000 in the Street Reconstruction Fund for roadway maintenance as bituminous mill & overlay in the Capital Improvement Plan; and WHEREAS , the Director of Public Works has identified streets within the City that need bituminous mill and overlay maintenance in accordance with the Pavement Management program; and WHEREAS , TKDA has prepared plans and specifications for City Project 13-05, 2013 Bituminous Mill and Overlay. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Shorewood, Minnesota: 1.The plans and specifications prepared by TKDA for such improvement. Said plans and specifications are hereby approved and shall be filed with the City Clerk. 2. The City Clerk shall prepare and cause to be inserted in the official paper and according to MN State Law an advertisement for bids upon the making of such improvement under such approved plans and specifications. The advertisement shall be published for 2 weeks, shall specify the work to be done, shall state that bids will be opened and considered by the Council at 10:00 a.m. (CST), onThursday, September 5, 2013, in the City Hall Council Chambers, and that no bids will be considered unless sealed and filed with the Clerk and accompanied by a cash deposit, cashier’s check, bid bond, or certified check payable to the Clerk for 5 percent of the amount of each bid. ADOPTED BY THE CITY COUNCIL OF THE CITY OF SHOREWOOD this 12th day of August, 2013. Scott Zerby, Mayor ATTEST: Jean Panchyshyn, City Clerk #9B MEETING TYPE City of Shorewood Council Meeting Item Regular Meeting Title / Subject: 2013 Street Drainage and Utility Improvements - Approve Plans and Specifications and Authorize Advertisement for Bids for Valleywood Lane/Valleywood Circle Roadway Improvements, City Project 13-01 Meeting Date: August 12, 2013 Prepared by: Paul Hornby Reviewed by: Attachments: Plan Excerpt, Resolution Approving Plans, Specifications, and Authorization to Advertise for Bids Background: The City Council authorized preparation of plans and specifications for the Valleywood Area roadway improvements at the regular meeting of the Council on May 13, 2013. The Council authorization included alternatives presented by staff consisting of a combination of urban and rural roadway segments, reduced width for Valleywood Lane west of Valleywood Circle, and reduced width of Valleywood Circle (around the cul de sac center island). The improvements authorized by the Council do not include extension of watermain to the improvement area. The Capital Improvement Plan budget provides $743,000 for the improvements, $142,000 from the Storm Water Fund and $601,000 from the Street Reconstruction Fund. The Feasibility Report estimated total project costs to be $743,284, with $131, 802 for the storm sewer, $23,538 for minor sanitary sewer manhole improvements, and $587,944 for roadway improvements. The enclosed Resolution approves the project plans and specifications and authorizes the advertisement for bids. The opening of bids is scheduled for 10:30 a.m., Thursday, September 5, 2013. Options: 1.Approve the resolution Approving Plans, Specifications and Authorizing Advertisement for Bids for the Valleywood Lane and Valleywood Circle Improvements as the 2013 Street, Drainage, and Utility Improvements, City Project 13-01. 2.Direct staff to modify plans. 3.Take no action on this item. Recommendation / Action Requested: Staff recommends approval of the Resolution to Approve Plans and Specifications, Authorize Advertisement for Bids for City Project 13-01, Valleywood Lane and Valleywood Circle Improvements as the 2013 Street, Drainage, and Utility Improvements, City Project 13-01. Mission Statement: The City of Shorewood is committed to providing residents quality public services, a healthy environment, a variety of attractive amenities, a sustainable tax base, and sound financial management through effective, efficient, and visionary leadership. Page 1 Xrefs:, 22x34-Muni, _ProposedBase, ValleywoodLane_RoadDesign, _ExisitingBaseXrefs:, 22x34-Muni, _ProposedBase, ValleywoodLane_RoadDesign, _ExisitingBase Drawing name: K:\n-z\Shorewood\15187000\muni\C3D11-Valleywood\PlanSet\16-ValleywoodLnPP.dwgDrawing name: K:\n-z\Shorewood\15187000\muni\C3D11-Valleywood\PlanSet\16-ValleywoodLnPP.dwg Plot Date: 08/08/2013Plot Date: 08/08/2013 FIELD BOOK:FIELD BOOK: CITY OF SHOREWOOD RESOLUTION NO. 13-___ A RESOLUTION APPROVING SPECIFICATIONS AND AUTHORIZATION FOR ADVERTISEMENTS FOR BIDS 2013 STREET, DRAINAGE AND UTILITY IMPROVEMENTS, VALLEYWOOD LANE AND VALLEYWOOD CIRCLE, CITY PROJECT 13-01 WHEREAS , pursuant to a motion passed by the council May 13, 2013, the city consulting engineer TKDA has prepared plans and specifications for City Project 13-01, 2013 Street, Drainage and Utility Improvements, Valleywood Lane and Valley Wood Circle, located east of Eureka Road, and has presented such plans and specifications to the council for approval; and WHEREAS , the City of Shorewood designated $743,000 in the Capital Improvement Plan for the purpose of reconstructing the streets, storm sewer, and sanitary sewer in the improvement area; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Shorewood, Minnesota: 1.The plans and specifications prepared by TKDA for such improvement. Said plans and specifications are hereby approved and shall be filed with the City Clerk. 2. The City Clerk shall prepare and cause to be inserted in the official paper and according to MN State Law an advertisement for bids upon the making of such improvement under such approved plans and specifications. The advertisement shall be published for 2 weeks, shall specify the work to be done, shall state that bids will be opened and considered by the Council at 10:30 a.m. (CST), onThursday, September 5, 2013, in the City Hall Council Chambers, and that no bids will be considered unless sealed and filed with the Clerk and accompanied by a cash deposit, cashier’s check, bid bond, or certified check payable to the Clerk for 5 percent of the amount of each bid. ADOPTED BY THE CITY COUNCIL OF THE CITY OF SHOREWOOD this 12th day of August, 2013. Scott Zerby, Mayor ATTEST: Jean Panchyshyn, City Clerk #9C MEETING TYPE City of Shorewood Council Meeting Item Regular Meeting Title / Subject: County Road 19 Sidewalk Extension, City Project 12-01 Meeting Date: August 12, 2013 Prepared by: Paul Hornby Reviewed by: Attachments: Resolution Approving Change Order No. 1, Change Order No. 1 Background: The City Council awarded the County Road 19 Sidewalk Extension Project to Barber Construction Company, Inc., of St. Bonifacius, MN, on April 22, 2013. The sidewalk extension provides a connection between the existing sidewalk along County Road 19 and the LRT Regional Trail. The project is nearing completion and during construction changes in the contract materials was necessary. The changes required to advance construction include the addition of: 1.Two culverts at an existing bituminous spill way between a roadway storm drain and the LRT Trail ditch. This change was made to improve the walkway grade crossing the spillway. 2.Removal and replacement of an irrigation system serving Xcel Energy. 3.Abandonment of an underground water storage tank. 4.Fill material to correct subgrade and to provide fill for grade adjustment at the two culverts. Financial or Budget Considerations: The original project construction contract amount is $54,294.00 and Change Order No. 1 will increase the project construction costs $14,004.96 to $68,301.96. The Capital Improvement Plan provides a budget of $72,000 for this project and the City received a 25% cost reimbursement grant from Hennepin County, not to exceed $18,000. Recommendation / Action Requested: Staff recommends approval of Change Order No. 1 in the amount of $14,004.96, increasing the construction contract amount to $68,301.96. Mission Statement: The City of Shorewood is committed to providing residents quality public services, a healthy environment, a variety of attractive amenities, a sustainable tax base, and sound financial management through effective, efficient, and visionary leadership. Page 1 CITY OF SHOREWOOD RESOLUTION NO. 13-___ A RESOLUTION APPROVING CHANGE ORDER NO. 1 FOR THE COUNTY ROAD 19 SIDEWALK EXTENSION PROJECT CITY PROJECT 12-01 WHEREAS , the City of Shorewood awarded the contract for the extension of sidewalk along the east side of County Road 19, from the existing walkway to the LRT Regional Trail (approximately 1,200 feet in length) to Barber Construction Company, Inc.; and WHEREAS , the Capital Improvement Plan provides $72,000 for the improvement project, and the City has received a grant from Hennepin County with participation of 25% of the project costs, not to exceed $18,000; and WHEREAS , Change Order No. 1 is necessary to restore an irrigation system, add culverts, abandon an underground tank, and perform subgrade correction; and WHEREAS , Change Order No. 1 will increase the project construction costs in the amount of $14,004.96, from the original contract amount $54,294 to $68,301.96; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Shorewood, Minnesota: 1.Change Order No. 1 in the amount of $14,004.96 is hereby approved. ADOPTED BY THE CITY COUNCIL OF THE CITY OF SHOREWOOD this 12th day of August, 2013. ATTEST: Scott Zerby, Mayor Jean Panchyshyn, City Clerk CHANGE ORDER NO. 1 COUNTY ROAD 19 SIDEWALK EXTENSION PROJECTAUGUST 5, 2013 CITY PROJECT NO. 12-01 CITY OF SHOREWOOD, MN WSB PROJECT NO. 1684-71 OWNER:CONTRACTOR: BARBER CONSTRUCTION CO., INC. CITY OF SHOREWOOD 4350 MAIN STREET 5755 COUNTRY CLUB ROAD ST. BONIFACIOUS, MN 55375 SHOREWOOD, MN 55331 YOU ARE DIRECTED TO MAKE THE FOLLOWING CHANGES IN THE CONTRACT DOCUMENT DESCRIPTION: Add the quantities indicated in the attached detail to the contract quantity utilizing the contract price per unit. IT IS UNDERSTOOD THAT THIS CHANGE ORDER INCLUDES ALL ADDITIONAL COSTS AND TIME EXTENSIONS WHICH ARE IN ANY WAY, SHAPE, OR FORM ASSOCIATED WITH THE WORK ELEMENTS DESCRIBED ABOVE. CHANGE IN CONTRACT PRICE:CHANGE IN CONTRACT TIME: ORIGINAL CONTRACT PRICE:$54,297.00ORIGINAL CONTRACT TIME:6/1/2013 $0.00 PREVIOUS CHANGE ORDERS: NO. 1NET CHANGE FROM PREVIOUS CHANGE ORDERS:NONE CONTRACT PRICE PRIOR TO THIS CHANGE ORDER:$54,297.00CONTRACT TIME PRIOR TO THIS CHANGE ORDER:6/1/2013 INCREASE NET OF THIS CHANGE ORDER: $14,004.96NET INCREASE OF CHANGE ORDER:NONE CONTRACT PRICE WITH ALL APPROVED CHANGE ORDERS:$68,301.96CONTRACT TIME WITH APPROVED CHANGE ORDERS:6/1/2001 RECOMMENDED BY:APPROVED BY: PAUL HORNBY, PE, PROJECT MANAGERCONTRACTOR SIGNATURE WSB & ASSOCIATES, INC.BARBER CONSTRUCTION CO. INC. ENGINEERCONTRACTOR APPROVED BY: CITY ENGINEERCITY ADMINISTRATOR DATEDATE K:\01459-790\Admin\Construction Admin\Pay Vouchers\ Page 1 of 1 1459-79 CO 1-080513CO 2 CHANGE ORDER NO. 1 COUNTY ROAD 19 SIDEWALK EXTENSION PROJECT5-Aug-13FEBRUARY 6, 2012 CITY PROJECT NO. 12-01 CITY OF SHOREWOOD, MN WSB PROJECT NO. 1684-71 ADDED ITEMS PriceExtended Amount Item No.Mat. No.DescriptionQtyUnit 132501.51112" CS PIPE CULVERT20LF$30.00$600.00 142501.51512" CS PIPE APRON2EACH$200.00$400.00 152104.601ABANDON UNDERGROUND TANK1LS$1,228.31$1,228.31 162105.609SELECT GRANULAR BORROW215TON$10.00$2,150.00 172504.601IRRIGATION SYSTEM1LS$9,626.65$9,626.65 TOTAL ADDED ITEMS CHANGE ORDER NO. 1 $14,004.96 DELETED ITEMS PriceExtended Amount Item No.Mat. No.DescriptionQtyUnit TOTAL DELETED ITEMS CHANGE ORDER NO. 1 $0.00 K:\01459-790\Admin\Construction Admin\Pay Vouchers\ Page 1 of 1 1459-79 CO 1-080513CO 2 Detail Monica Pahl 400 5100 Anthony Terrace 05 0 Excelsior, MN 55331 10, r'0�_ {01� Att: Brad Nielsen Shorewood Ciy Council 5755 Country Club Rd. Shorewood, MN 55331 Re: Wild Turkeys Dear Shorewood City Council: I am very concerned about the growing population of wild turkeys in my neighborhood as are my neighbors. They are in our yards creating havoc and even on our porches literally undeterred by our efforts to scare them off. I have done some research on wild turkeys and discovered that turkeys are indeed known to be a significant reservoir of diseases for humans and a host to ticks and other ectoparasites. Not only that, but their droppings are unsightly and unsanitary. With children in our neighborhood, turkeys are very aggressive and will chase kids and other small pets. We have about 18 -20 turkeys to -date with the additional 12 per clutch born this summer. It is out of control and I urge the city to take action. Why not grant permits to bow hunters to control this species as we do for deer? Thank you for your consideration. Respectfully, \ f Monaca Pahl MEMORANDUM Date: August 12, 2013 To: Mayor Zerby Council Members From: Bruce DeJong, Finance Director Re: June, 2013 Quarterly Investment Report ______________________________________________________________ The City’s cash reserves have been invested in both cash flow type of investments to meet ongoing expenditure needs and longer-term securities with higher returns than money market funds. It is important to remember our investment priorities in order of concern: 1.Safety – preserving principal; 2.Liquidity – having funds available when needed to pay expenses; 3.Yield – earning market returns for the amount of risk we are willing to accept. With the investments that the City currently in the portfolio, and with our philosophy of holding investments to maturity, we are exposed to minimal risk of principal loss. The only expected change is when investments are marked to market and gains or losses are recognized at year end. Over the past three years, the city has only had three months where cash flow is positive – June, July, and December. Those months are when we receive tax settlements which are just prior to scheduled bond payments. The rest of the months need about $500,000 on average to cover operating costs. This means that the City should have a mix of callable and non-callable investments with both short-term cash flow needs being met and longer maturities targeting major cash needs over the five year maximum investment horizon. We are still occasionally finding investments in the four year and under time frame that return around 1.0%. I have purchased several high coupon bonds at a premium that are returning over 2% to maturity. These bonds will have the premium amortized over the next several years. I have purchased Certificates of Deposit to specific months for cash flow needs. We have a significant amount of funds held in cash and money market while we keep looking for investments with a reasonable yield. With wire transfer fees, the cost to move money may be higher than the interest we can earn. The most significant risk in this environment is getting stuck with investments at a very low rate when interest rates start to increase. Staff will invest these funds to increase the portfolio returns, while maintain flexibility to cover expenditures. Please contact me or Mr. Joynes if you have any questions. Attachment: June, 2013 Investment Summary City of Shorewood - Investment Summary 6/30/13Mkt ValueMarket ValueBook ValueUnrealized YTD CouponMaturity DateCusip12/31/20126/30/20136/30/2013Gain/(Loss)Interest 4M 900-10400 Money Market 1,889,267.34 21,134.45 21,134.45 (0.00) 37.25 1,889,267.34 21,134.45 21,134.45 (0.00) 37.25 Morgan Stanley - Smith Barney 900-10410 MONEY MARKET 1,515,724.29 1,769,886.97 1,769,886.97 - 370.37 CDCapmark Bank - UT, CD1.507/1/20131406534J2 97,354.56 96,000.00 97,354.56 (1,354.56) 2,533.15 CDCapmark Bnk, UT - CD1.507/1/20131406534J2 54,761.94 54,000.00 54,761.94 (761.94) - CDCIT Bnk, UT - CD1.507/1/201317284AHD3 97,354.56 96,000.00 97,354.56 (1,354.56) 2,533.15 CDCIT Bnk, UT - CD1.507/1/201317284AHD3 54,761.94 54,000.00 54,761.94 (761.94) - CDGE Capital Fin, UT - CD1.256/25/201336160TJG2 97,176.00 - - - 3,726.01 CDGE Capital Fin, UT - CD1.256/25/201336160TJG2 97,176.00 - - - - CDGE Capital Fin, UT - CD1.256/25/201336160TJG2 53,649.25 - - - - 2,067,958.54 2,069,886.97 2,074,119.97 (4,233.00) 9,162.68 (8,466.00) Sterne Agee 900-10420 Cash - - - Savings - - - - 0.61 FNMA NOTE B/E STEP 0.5012/20/20173136G15X3501,985.00 490,670.00 501,985.00 (11,315.00) 1,250.00 FICO Strips 8.609/26/20173136G15X3 470,606.50 476,140.00 (5,533.50) - Overseas Private Inv - US backedVariable4/30/2018690353VY0 1,004,740.00 1,006,680.00 (1,940.00) - Carlton County 2.052/1/2014142879GRO 197,653.95 196,792.05 197,653.95 (861.90) 1,998.75 Columbus OH Taxable 1.608/15/2018199492AE9 295,788.00 304,585.80 (8,797.80) - Elkhart IN Community Schools 5.707/5/2015287515SH4 175,278.45 181,867.68 (6,589.23) - Honolulu Series B Taxable 5.424/1/2017438670SH5 352,026.00 342,492.00 352,026.00 (9,534.00) 8,130.00 Honolulu Refunding Taxable 4.884/1/2015438670SF9273,520.00 268,920.00 273,520.00 (4,600.00) 6,100.00 Illinois St Pension 4.966/1/2013452151LA9 222,873.20 0.00 - 0.00 4,235.00 Illinois St 3.853/1/2016452152FH9 317,274.50 310,491.40 317,274.50 (6,783.10) - Illinois St Taxable 5.094/1/2017452152HR5 873,800.40 863,028.15 873,800.40 (10,772.25) 27,426.20 New York Taxable 4.131/9/201364966JAY2 329,430.00 341,147.83 (11,717.83) 6,195.00 Raleigh NC Housing Taxable 3.25 273,358.80 278,622.64 (5,263.84) - ROSEMOUNT IL SER B TAXBL 5.2412/1/2014777543PF0 528,709.50 525,729.60 528,709.50 (2,979.90) 12,969.00 ROSEMOUNT IL Corp Purpose 3.8912/1/2016777543RG6 532,950.00 530,580.00 532,950.00 (2,370.00) 9,725.00 State Pub Sch Bldg Chester PA 1.969/15/201385732TDF6 539,312.10 536,749.45 539,312.10 (2,562.65) 5,245.68 Stratford CT Rfdg pension oblig 1.918/1/2014862811U20 254,692.50 253,275.00 254,692.50 (1,417.50) 2,381.25 Talawanda OH BABS 4.3812/1/2016874091CM1 258,782.00 256,587.10 258,782.00 (2,194.90) 5,140.63 Washington Co PA .50% 1.119/1/2013938582KE2 250,075.00 250,797.50 250,075.00 722.50 1,381.25 West Muskingum OH Taxable 1.3012/1/2015954668GD5 294,525.05 296,663.80 (2,138.75) 1,448.78 Will Cnty IL School District 4.4510/1/2014968852WP4 316,884.00 314,058.00 316,884.00 (2,826.00) 6,675.00 Carlton County 1.952/1/2013142879GQ2 185,177.60 - - - 1,433.75 Page 1 City of Shorewood - Investment Summary 6/30/13Mkt ValueMarket ValueBook ValueUnrealized YTD CouponMaturity DateCusip12/31/20126/30/20136/30/2013Gain/(Loss)Interest Milwaukee Cnty 1.4512/1/2013602266AA6 520,695.00 - - - 7,785.56 FNMA NOTE B/E STEP 0.751/30/20173136FFTZU6 1,000,440.00 - - - 3,750.00 - 7,126,850.75 7,983,897.05 8,083,372.70 (99,475.65) 113,271.46 (198,951.30) Wells Fargo 900-10430 MONEY MARKET 593,805.08 2,039.49 2,039.49 0.00 274.92 Groton CT Taxable2.501/24/2013399280XY7 1,400,448.00 - - - 13,961.11 Beal Bank2.502/27/201307370S5X9 239,982.00 - - - 628.27 KS Bnk Smithfield. NC-CD2.505/17/201348266PAQ5 100,768.00 - - - 1,027.40 Safra Natl Bank of NY0.455/17/2013786580P20 237,033.41 - - - 1,066.50 American Eagle Bnk, Elgin IL-CD2.009/18/201302554BBP5 101,508.00 100,442.20 101,508.00 (1,065.80) 1,296.43 MSCU Taxable1.0010/1/201360414FKC3 305,427.00 305,430.05 305,427.00 3.05 1,525.00 Apple Bank0.4010/7/2013037830LF1 239,916.96 239,974.80 239,916.96 57.84 478.68 Mizuho Bank - CD0.305/15/201460688TLR8 244,934.39 245,000.00 (65.61) - BMW Bank0.705/16/201402554BBP5 240,589.44 240,577.92 240,589.44 (11.52) 833.10 Hawkeye IA1.006/1/201405568PW60 266,857.65 265,840.05 266,857.65 (1,017.60) 1,325.00 Discover Bank - CD0.3011/17/2014254671PB0 244,103.79 245,000.00 (896.21) - State Bank of India1.1511/23/2015856284H72 248,574.62 248,367.24 207.38 1,414.28 Columbia County GA4.501/1/2016197460EH7 901,312.50 925,728.37 (24,415.87) - Shelby County TN5.004/1/2016821686G30 221,026.00 226,705.33 (5,679.33) - FNMA0.652/2/20173135G0XL27 491,010.00 500,000.00 (8,990.00) - 3,726,335.54 3,505,265.81 3,547,139.48 (41,873.67) 23,830.69 Total Investments 14,810,412.17 13,580,184.28 13,725,766.60 (145,582.32) 146,302.08 Page 2