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11-12-13 CC Reg Mtg AgendaP E. D. C. B. A. CITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD CITY COUNCIL REGULAR MEETING COUNCIL CHAMBERS TUESDAY, NOVEMBER 12, 2013 5:30 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, October 28, 2013 Minutes B. City Council Regular Meeting Minutes, October 28, 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. City Hall December Holiday Schedule Administrator’s memo 4. MATTERS FROM THE FLOOR (No Council action will be taken) 5. PUBLIC HEARING 6. REPORTS AND PRESENTATIONS 7. PARKS 8. PLANNING A. Report by Sue Davis on the November 5, 2013 Planning Commission meeting 9. ENGINEERING/PUBLIC WORKS A. Apple Road Funding Agreement Engineer’s memo CITY COUNCIL REGULAR MEETING AGENDA – NOVEMBER 12, 2013 Page 2 of 2 Attachments 10. GENERAL/NEW BUSINESS A. Lake Minnetonka Regional Scenic Byway Designation City Administrator’s memo B. Certification of Delinquent Charges Finance Director’s memo, Resolution C. Special Assessment Policy Finance Director’s memo 11. OLD BUSINESS 12. STAFF AND COUNCIL REPORTS A. Administrator and Staff 1. Monthly Financial Report 2. Quarterly Investment Report 3. Construction Update on Trail Projects B. Mayor and City Council 1. Metro Cities Draft Policies 13. ADJOURN #2A CITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD CITY COUNCIL WORK SESSION COUNCIL CHAMBERS MONDAY, OCTOBER 28, 2013 6:00 P.M. MINUTES 1. CONVENE CITY COUNCIL WORK SESSION Mayor Zerby called the meeting to order at 6:01 P.M. A. Roll Call Present. Mayor Zerby; Councilmembers Hotvet, Siakel, Sundberg, and Woodruff; Administrator Joynes; City Clerk Panchyshyn; Finance Director DeJong; Planning Director Nielsen; and Director of Public Works Brown Absent: None B. Review Agenda Hotvet moved, Woodruff seconded, approving the agenda as presented. Motion passed 5/0. 2. RATE STUDY Mayor Zerby introduced Ms. Stacie Kvilvang with the firm of Ehlers who is present to give a presentation about the results of the sewer and stormwater rate studies that firm conducted. Ms. Kvilvang noted her colleague Mr. Jason Aarsvold is present. The highlights of Ms. Kvilvang’s PowerPoint presentation about the sewer rate and stormwater rate studies are as follows. Ehlers was asked to conduct sewer rate and stormwater rate studies. The goal was to determine  what the rates need to be to pay for the cost operations and various capital projects while continuing to maintain healthy fund balances. The Sewer Fund and the Stormwater Management Fund are Enterprise Funds. Therefore, they should be run like a business and make money. They both have solid fund balances and no outstanding debt. The Stormwater Management Fund’s net assets are stable but cash has declined from $650,000 in  2009 to a projected $100,000 at the end of 2013. More than $550,000 was spent on capital projects. The current stormwater rates cover the operating costs but not future capital needs identified in the Capital Improvement Program (CIP). The capital projects will cost a total of just over $2.5 million over the next three years. The goals for this Fund are: to pay for capital projects in the CIP; to achieve and maintain a targeted Fund balance); and, pay for projects. For any Enterprise Fund balance it is recommended there be enough to cover 50 percent of operating costs, 100 percent of the annual depreciation expense and 100 percent of the next year’s debt without having to bond for them. The current residential stormwater rates are: for lots less than 10,000 square feet – $10.59 per  quarter; for lots between 10,000 square feet and 50,000 square feet – $15.12 per quarter; and for CITY OF SHOREWOOD WORK SESSION MEETING MINUTES October 28, 2013 Page 2 of 8 lots 50,000 square feet or more – $19.68 per quarter. The commercial rates vary. About 67 percent of the residential stormwater accounts pay the middle rate. An inter-fund loan is proposed from the Sewer Fund in the amount of: $475,000 in 2014; $150,000 in 2015; $450,000 in 2016; and, $150,000 in 2017. The loan would be paid back at a 4 percent interest rate. A rate increase of about $3.00 per quarter is proposed for 2014 and 2015 for the middle rate. The Stormwater Management Fund balance will increase overtime to where the balance should be.  The actual working capital should get to where it is higher than the target working capital. The rates and projects should be reviewed on an annual basis. The goal for the Sewer Fund and Stormwater Management Funds are to increase them steadily.  The Sewer Fund balance has been stable at about $3.5 million for the last three years. But, $2.990  million (or 85 percent) of reserves is projected to be spent in the next four years. The goals for this Fund are: to pay for capital projects in the CIP; to achieve and maintain a targeted Fund balance; to fund Stormwater Management and trail projects; and, pay for projects without having to bond for them. Overtime the target working capital and the Fund balance will become better proportionally. To maintain the targeted cash reserves (50 percent of operating costs and 100 percent of the annual  depreciation) in the Sewer Fund a 3 percent increase in the rates for all customers is recommended starting in 2014. That would keep up with operating cost inflation and take into consideration the inter-fund loan of $1.7 million to the Stormwater Management Fund. The payback of that loan with a 4 percent interest rate is accounted for in the 3 percent rate increase. Two rate options were presented for the sewer rate for customers on both City sewer and City  water. Option 1 is a fixed fee plus a user charge based on actual City water usage. Option 2 is a fixed fee plus a user charge based on winter water usage averaging for residential customers only. There are pros and cons for the Options. Customers pay sewer rates based on the actual water usage; but, not all water usage goes down the drain. Winter averaging is based on the first quarter water usage and would make the yearly rate more predictable; but, it assumes all water usage is indoors. Users not on City water cannot measure sewer usage. Customers with lower water usage will experience a decrease in their sewer bills; but, those higher usage customers will see an increase. Sewer Fund Option 1 – For the 2012 sewer operations personnel services costs were  approximately $95,000. That equates to a base rate of $8.25 per customer per quarter. The usage charge covers all other operating and capital costs for the Sewer System. The usage charge would be $1.90 per 1,000 gallons based on the average user for all customers on City water. For customers not on City water it would be based on the average water usage of 34,000 gallons per quarter and the total quarterly sewer bill for those customers would be $72.85. Sewer Fund Option 2 –The base rate of $8.25 per customer per quarter is the same as for Option  1. The usage charge would be based on winter average water usage in the first quarter for residential customers. The usage is much lower in the winter months; therefore, the usage charge is higher. The usage charge would be $3.40 per 1,000 gallons for residential customers and $1.90 for commercial customers. For customers not on City water it would be based on the average water usage of 19,000 gallons per quarter and the total quarterly sewer bill for those customers would be $72.85. The first quarter average water usage is the lowest consumption quarter. The usage starts to  increase some in the second quarter. It is the highest in the third quarter. And it goes down to the second lowest in the fourth quarter. The winter average water is relatively flat throughout the year. There is a slight dip in the first quarter and that is likely because of those customers that go south in the winter. The existing residential quarterly sanitary sewer rate is $70 for residents, $46.66 for low income  sewer only, and $70 for sewer customers only. For commercial customers it is $70. CITY OF SHOREWOOD WORK SESSION MEETING MINUTES October 28, 2013 Page 3 of 8 For residential and commercial customers an $8.25 fixed base charge is being proposed. For low  income sewer only customers the charge would be $48.57. For sewer only customers the charge would be $72.85. For Option 1 (actual water consumption) the residential usage charge would be $1.90 per 1,000 gallons and for Option 2 (winter average water usage) it would be $3.40 per 1,000 gallons. More money would be collected for Option 1. The commercial usage charge would be $1.90. For residential users 80 percent fall in the 34,000 gallons per quarter average water consumption  and pay $70 per quarter. For that average the usage rate would be $72.85 for both Options. For non-water customers it is assumed they will fall into the 80 percent range. The current charge is $70.00 and it will increase to $72.85 for both Options. For the 10 percent of customers who use 4,000 or 7,000 gallons per quarter their sewer bill will go from $70 per quarter to $21.55 for Option 1 and $21.85 for Option 2. For the 10 percent high water users their bill will go from $70 to $124.15 for Option 1 and $123.85 for Option 2. The commercial users who are only paying $70 will have their bill increase to $179.25. Essentially the residential customers who are average water consumers are subsidizing high water  users and commercial users over time. Deciding which Option to choose comes down to a policy discussion. There is no right or wrong  answer. Both Options generate the same amount of revenue. For Option 1 there would be more fluctuation in the sewer bill between winter and summer. Low users will get a break and high users will pay more. For Option 2 customers the first quarter usage caps water consumption for the rest of the year and the bills would be more stable throughout the year. The majority of cities do winter averaging; it helps with budgeting. The City did a joint project with the City of Excelsior in 1971 for the joint usage of Glencoe Road  sanitary trunk sewer line. The total cost of that project was $42,360 and the City paid one half of that. The City annually pays Excelsior joint use sanitary sewer service rental fees based on budgeted collection costs, depreciation and administrative costs, and a proportional share of the estimated wastewater flows into Excelsior for Metropolitan Council Environmental Services fees. During the rate study it became apparent that there may have been some overpayments to Excelsior with regard to what the City has been paying for the system. The City is being billed on budgeted costs and there is no reconciliation back to actual costs. Also, the City is paying on depreciation based on the entire City of Excelsior system and not just the Glencoe Road trunk sewer line. The City currently pays about $30,000 annually to Excelsior. The City could save about $7,500 annually based on these assumptions: the value of the Glencoe Road trunk line in 1971; the life of a fixed asset of 50 years; the asset being depreciated by the same amount each year; and, the asset being fully depreciated by 2021. There is no one on staff or on Council who knows what the agreement was in 1971. Mayor Zerby thanked Ms. Kvilvang for the good report. Councilmember Woodruff stated he spoke with Ms. Kvilvang earlier in the day and he asked her a number of questions about the studies. He noted that Ehlers had been asked to model the two studies based on capital needs out through 2018. Yet, there will be capital needs beyond that. He stated he is a little concerned that the recommendations will not meet the capital needs going forward. He recommended the study recommendations be revisited periodically. Ms. Kvilvang agreed with revisiting this. Ms. Kvilvang clarified that Ehlers had the City’s capital needs out through 2023. After 2018 they are not very significant. The proposed rates already account for that. Woodruff questioned if enough thought has been given to the out years for capital projects. CITY OF SHOREWOOD WORK SESSION MEETING MINUTES October 28, 2013 Page 4 of 8 Woodruff stated the proposal for the sewer rate is for the low water users, which is about 10 percent of the City-water customers, to see a significant drop in their sewer rates yet for those customers not on City water there rate will increase slightly over today’s rate. He questioned the fairness of that. Ms. Kvilvang clarified the water usage used is average so there will be some water users who’s bills will be close to the higher amounts and there will be some that end up paying less. She also clarified that those people not on City water are assumed to be in the 80 percent group of City water customers and therefore they will pay the same rate. For the non-water customers who use a lot of water they are benefiting from being grouped in with the 80 percent group and those who are low water users are not. Councilmember Woodruff stated over the last 4 – 5 years he has had residents who go away for the winter or who are retired and live alone ask him why their sewer bill is so high. He expressed concern that those residents who are not on City water will continue to pay a higher rate. He noted that he does not have a good idea about how to address that. He stated he would find it difficult to justify why a low City-water user would have a very low sewer bill while a low well water user would have a much higher bill. He commented there are those who might think that could incent people to want to connect to City water. Woodruff noted there are trail projects beyond 2018. Yet, the rate change recommendations do not take into account the Sewer Fund or Stormwater Management Fund helping to pay for those projects. The financial needs for Galpin Lake Road, the Smithtown Road east and the Excelsior Boulevard trail segments are the only ones taken into account. Woodruff stated earlier in the day he questioned why a transfer, rather than a loan, could not be made from the Sewer Fund to the Stormwater Management Fund. All property owners pay for both utilities. He noted that he thought that the City paying itself interest on the loan is to him funny money. He suggested Council discuss that some time. He clarified that although he has a slight problem with paying interest on that loan it is not a significant issue for him. Woodruff then stated Ehlers has recommended that the reserves cover the annual depreciation and 50 percent of the operating costs. He does not think that is enough. He noted that he has a philosophical problem with establishing a fund to save up for future projects. This Council has never done that. Future projects have been paid for with future money. He stated Council needs to discuss if it wants the City to save up for future projects. Councilmember Sundberg asked that Council be provided with comparable rate data for other communities. Ms. Kvilvang suggested Council pass on to Director DeJong what communities it would like data for and then DeJong can forward it on to her. She will then put the data together. Councilmember Siakel noted she thought the results of the study are clearly laid out. She stated from her vantage point the recommended increase in the stormwater rate is minimal; it is about $1 a month. She suggested a larger increase in anticipation of future project needs such as trails. Ms. Kvilvang noted that is Council’s policy decision. Councilmember Woodruff stated the analysis shows that for 67 percent of the customers that rate will increase from the current rate of $15.12 to $37.62 in 2018. He considers that to be a significant increase; an increase of over 150 percent when compared to 2013. He noted that when looking at the actual dollar amount a person would be paying less than $160 a year for stormwater management. Ms. Kvilvang explained the increase in the quarterly rate would be $3.02 in 2014, $3.63 in 2015, $4.36 in 2016, $5.22 in 2017 and $6.27 in 2018. Woodruff stated the amount the rate will increase by in 2017 when compared to 2013 is more than the 2013 rate. CITY OF SHOREWOOD WORK SESSION MEETING MINUTES October 28, 2013 Page 5 of 8 Siakel stated the future stormwater management demands and project needs are quite significant. She noted she does not view the proposed increases as out of line. She reiterated that she questions if the increases are enough. She noted that she, like the other four Councilmembers, is not on City water but she thinks the recommendations for the sewer rates seems fair. She stated she does not think there is a way to make the rates fair for 100 percent of Council’s constituents. She then stated with regard to the billing issue with Excelsior she thought if the situation were reversed she thought Excelsior would approach the City about it. Therefore, she suggests the City approach Excelsior about this issue. Councilmember Hotvet expressed her curiosity about how many residents go away for the winter. Mayor Zerby noted that he thought the information was presented well. He stated he thought the stormwater rate could be increased even more in anticipation of future projects and mandates. He noted that he prefers the sewer rate Option 2 which uses the winter average water usage to determine the usage charge. He thought it would be easy to understand and fair. He asked what happens with new users with the winter averaging approach; those that become customers in the summer or fall. He asked if the rate is based on an average. Ms. Kvilvang stated that is typically how it is done. He stated he thought not looking past 2015 for trail projects is okay; he thought that would allow for more resident involvement. He then stated that if residents want the trail system to be built out faster it may become a bonding consideration, noting Councilmember Woodruff has brought up residents voting on bonding for trails before. Consideration of that has to be factored into the election cycle. Councilmember Woodruff stated that the first opportunity to have this as part of an election cycle could be in 2014. If Council really wants to do that it should discuss it during the first quarter of 2014. He clarified he is not advocating the bonding issue at this time. He stated the next opportunity to have bonding on the ballot would be in 2016 and noted he is not sure how many of the current members of Council will be on or running for Council. Mayor Zerby stated he agrees with Councilmember Siakel’s recommendation to approach Excelsior on the potential overbilling issue. Mayor Zerby thanked Ms. Kvilvang for coming this evening and for Ehlers efforts. 3. CAPITAL IMPROVEMENT PROGRAM Administrator Joynes asked Council to consider what he is going to talk about from the perspective of the end. He noted the two rate studies were pieces of the puzzle of how to fund the projects Council has been talking about for 1.5 years, in particular trails. The rate studies done by Ehlers have provided a roadmap for how to do that for the next couple of years. Joynes reviewed the direction staff took from Council during the October 14, 2013, work session.  Determine how to stabilize the Equipment/Technology/Building Fund.  Allocate the proceeds from the sale of the property at 5795 Country Club Road to the Park Capital Improvement Program (CIP) and to phase in improvements to Badger Park over a couple of years.  Set aside the Mill Street trail segment project for a to-be-determined time period and to schedule the construction Galpin Lake Road trail segment in 2014 and the Smithtown Road east trail/sidewalk segment in 2015. That schedule was factored into the rate studies done by Ehlers.  Use Minnesota State Aid (MSA) funds to help fund trail projects where appropriate. CITY OF SHOREWOOD WORK SESSION MEETING MINUTES October 28, 2013 Page 6 of 8  Use reserves in the Sewer Fund to help fund trail projects. This was factored into the studies done by Ehlers. He noted if Council were to want to charge a lower sewer rate for those residents who go south for the winter that would reduce the revenue earned and another source for funding the trails would have to be identified. He explained staff reviewed the items that would be funded out of the Equipment/Technology/Building (ETB) Fund. Staff decided it would be appropriate to fund the purchase of certain pieces of replacement equipment out of the Water Fund or Sewer Fund. For the Water Fund they would be a truck, air compressor, utility truck, van and pickup. Water rates may have to be adjusted to fund them. For the Sewer Fund they would be a sewer jetter and truck. After that is allowed for the future funding gaps out through 2023 in the ETB Fund would be an estimated $12,000 – $15,000 annually. Staff thinks the City would be well within its ability to finance that gap by taking it out of reserves or from cost savings experienced for roughly the last decade. Staff does not think there will be any problem stabilizing the Fund. Those were factored into the rate studies done by Ehlers. Councilmember Hotvet asked if the seven equipment purchases just mentioned will be made between now and the end of 2018. Director DeJong stated the purchases are scheduled for 2014, 2015 or 2016. They are not scheduled to be replaced again during the remainder of the CIP. DeJong noted there are not any watermain projects schedule to happen as part of a street reconstruction project during that 10-year period. Administrator Joynes explained per Council’s direction the proceeds from the sale of the 5795 Country Club road property will be allocated to the Park Improvement Fund. For the Badger Park improvements the field orientation is scheduled to occur in 2014 for an estimated cost of $100,000 and the road, parking, shelter and playground improvements for 2015 for an estimated cost of $435,000. The hockey rink in Badger Park is slated to be removed. A decision needs to be made as to whether or not the rink should be replaced with a rink in Freeman Park. The CIP had allotted $40,000 for the hockey rink and staff believes that amount is very low if the rink will be replaced. There has been discussion about the need to replace the hockey rink especially because there is a hockey rink in the City of Tonka Bay’s Manitou Park which is a short distance from Badger Park. The $40,000 has been taken out of the Park CIP. Staff has talked about working out a collaborative arrangement for operating Tonka Bay’s rink with Tonka Bay staff. Shorewood Public Works staff would be responsible for making sure the quality of the ice would be up to the Hockey Association’s standards for organized hockey. In return the City would be able to use the rink. At the staff level Tonka Bay has not been receptive to that. Having such an arrangement would be a win for both communities. The collaborative arrangement topic may have to be discussed at the Council level. Councilmember Siakel stated the Park Commission had been given a presentation about a portable hockey rink. She asked if that would be a viable option for on the ball field, while noting she does not need an answer this evening. Administrator Joynes stated that is a question that warrants follow-up. Administrator Joynes explained the Park CIP projects he has just talk about are valid with the assumption that the projects are funded through 2016. After 2016 it will take an approximate $80,000 additional annual contribution to balance the Park CIP. The needs in the Park CIP taper off after the Badger Park improvements are made. For the Trail CIP staff will adhere to Council’s direction and use $1,092,000 out of the MSA Road Reconstruction Fund over the 2013 – 2014 time period to help fund trail projects through 2015. MSA CITY OF SHOREWOOD WORK SESSION MEETING MINUTES October 28, 2013 Page 7 of 8 funds can be used for the construction of trails provided the trails meet MSA standards. The Galpin Lake Road trail segment and the Smithtown Road east sidewalk/trail segment will meet those standards. There is a placeholder in the MSA Road Reconstruction CIP for upgrading Eureka Road north to MSA standards. Staff is not sure that Council would ever ask for that to happen. He noted it is very common to have placeholders for MSA projects so they can receive MSA funds. Using MSA funds for trails is part of the purpose of the MSA funds. Staff anticipates funding 25 percent of the Smithtown Road west sidewalk project and the 2014/2015 trail projects out of the Stormwater Management Fund. The funding would be for stormwater management improvements made as part of the projects. The amount to transfer in 2014 is estimated to be $226,700 and in 2015 it is $234,500. The Sewer Fund would contribute $305,011 over 2014/2015 for similar reasons. Those transfers were factored into the rate studies for both utility funds. The trail projects slated for 2014/2015 will be funded based on the use of funds as described. After 2015 new sources will have to be identified for trail projects. The City will collect all MSA funds available through 2016 for the construction of the Galpin Lake Road and Smithtown Road east trail segments. Another funding source will need to be identified for funding repairs to Eureka Road north because it is unlikely the roadway will be upgraded to MSA standards. The City will receive an estimated allocation of MSA funds in the amount of $1,113,000 between 2017 and 2021. At this time there are no roadway or trail projects scheduled for the use of those funds. If the recommended sewer rate increases are implemented as Ehlers presented the Sewer Fund actual working capital will be higher than the target working capital threshold through 2018. If the recommended stormwater rate increases are implemented as Ehlers presented the Stormwater Management Fund actual working capital will reach the target working capital threshold in 2018. The implementation of new Municipal Separate Storm Sewer System (MS4) rules and mandates will require resources from that fund. There are additional funding resources available for use. The Water Fund has excess reserves of about $3 million that could be in part used for a loan. If the City were to use the Office of the State Auditor’s (OSA’s) minimum standard for calculating General Fund reserves the City would free up about $1.5 million in reserves. He clarified staff is not recommending that be done. If the OSA’s upper limit standards for General Fund reserves were used it would free up about $1.2 million. The City’s General Fund Balance Policy stipulates reserves of 55 – 60 percent of the upcoming year’s general operating costs. Councilmember Siakel asked what the OSA recommends for the minimum level of reserves. Director DeJong explained the OSA’s recommendation is 35 – 50 percent of the upcoming year’s expenditures excluding transfers. Administrator Joynes stated there are ways to fund things independent on how much money the City has in fund balances. There is bonding, equipment certificates (these are commonly used for capital equipment purchases and it is similar to taking out a loan for a purchase) and assessments. He then stated in 2023 the bonded debt for the public safety facilities will be paid off. That will free up about $510,000 annually for Shorewood. Some of that will have to be banked for expected maintenance to the facilities. Councilmember Hotvet asked what the interest rate is on that bonded debt. Director DeJong stated he thought it is about 3 percent. Mayor Zerby stated some of that money that was going toward the bonded debt needs to be set aside for capital repairs to the facilities. He used the analogy that once a person’s house is paid off it does not imply there won’t be any more bills. Administrator Joynes stated the entire amount will not be needed. CITY OF SHOREWOOD WORK SESSION MEETING MINUTES October 28, 2013 Page 8 of 8 Councilmember Woodruff stated he has questions about the CIP but there is not time to ask them this evening. He asked if the CIP will be discussed during the next work session. Administrator Joynes stated it would be and noted that the meeting that evening will be shorter because of other scheduling needs. Administrator Joynes stated the General Fund budget has to be approved in the timeframe the State requires. The CIP and the rates can be discussed at any time. He then stated his preference is to have Council in a position to make some decisions so that by the time of the next Council and staff retreat in early winter the financing is in place and then Council can talk about the strategic plan going forward. Councilmember Woodruff stated he wants to conclude the CIP by the end of November and the sewer rate and stormwater rate in December. Mayor Zerby noted there has not been discussion about building funding needs and technology funding needs. Administrator Joynes stated that will be available for the next meeting. 4. ADJOURN Woodruff moved, Sundberg seconded, Adjourning the City Council Work Session of October 28, 2013, at 7:06 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, OCTOBER 28, 2013 7:00 P.M. MINUTES 1. CONVENE CITY COUNCIL REGULAR MEETING Mayor Zerby called the meeting to order at 7:10 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 Director Nielsen stated the applicant for Item 8.B on the agenda asked that the application be continued to the November 25 Council meeting. Woodruff moved, Siakel seconded, approving the agenda as amended. Motion passed 5/0. 2. APPROVAL OF MINUTES A. City Council Work Session Minutes, October 14, 2013 Hotvet moved, Siakel seconded, Approving the City Council Work Session Minutes of October 14, 2013, as presented. Motion passed 5/0. B. City Council Regular Meeting Minutes, October 14, 2013 Hotvet moved, Woodruff seconded, Approving the City Council Regular Meeting Minutes of October 14, 2013, as presented. Motion passed 5/0. 3. CONSENT AGENDA Mayor Zerby reviewed the items on the Consent Agenda. Siakel moved, Woodruff seconded, Approving the Motions Contained on the Consent Agenda and Adopting the Resolution Therein. A. Approval of the Verified Claims List B. Approval of the 2014 Concessions Operation Agreement CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES October 28, 2013 Page 2 of 13 C. Adopting RESOLUTION NO. 13-069, “A Resolution Approving Licenses to Retailers to Sell Tobacco Products for CUB Foods Shorewood, Holiday Stationstore #12, Lucky’s Station LLC #7, and Shorewood Cigars and Tobacco, Inc. Motion passed 5/0. 4. MATTERS FROM THE FLOOR There were no matters from the floor presented this evening. 5. PUBLIC HEARING A. Vacate a Portion of Rustic Way Right-of-Way Mayor Zerby opened the Public Hearing at 7:12 P.M. Director Nielsen explained Margaret Prehall and her son Sam have applied for a minor subdivision of their property located at 4828 Rustic Way to divide it into two lots. As part of this request, there is a request for the City to vacate 10 feet of the right-of-way (ROW) of Rustic Way. The ROW at that location is 60 feet wide; that is somewhat consistent with the neighborhood. The City’s ROW standard is 50 feet wide. There is some precedent to this ROW vacation request. The City had vacated a portion of Ferncroft Drive a few years ago because of a similar type of request. The City does not need the portion of the ROW that would be vacated. The City Engineer has indicated there are no utilities in the area. The City will not need the area for roadway or utility improvements. The paved surface of the roadway would be shifted way to the south of the ROW. Staff recommends the City keep a drainage and utility over the vacated ROW per the City’s policy. The Planning Commission has recommended approval of the ROW as well as the vacation of the ROW. ROW vacations are the responsibility of the City Council. Seeing no one present to comment on the case Mayor Zerby opened and closed the Public Testimony portion of the Public Hearing at 7:16 P.M. Woodruff moved, Hotvet seconded, Adopting RESOLUTION NO. 13-070, “A Resolution Vacating a Portion of Rustic Way (Ridgewood Road)” subject to the applicants execution of the required drainage and utility easements. Motion passed 5/0. Mayor Zerby closed the Public Hearing at 7:17 P.M. 6. REPORTS AND PRESENTATIONS None. 7. PARKS A. Report on the October 15, 2013, Park Commission Meeting Park Commissioner Hartmann reported on matters considered and actions taken at the October 15, 2013, Park Commission meeting (as detailed in the minutes of that meeting). She noted that during Council’s work session immediately preceding this meeting Councilmember Siakel asked if it would be feasible to set up a portable ice rink on the ball field in Badger Park during the winter. She explained doing that would degrade the ball field’s turf. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES October 28, 2013 Page 3 of 13 Director Brown clarified that Eddy Station has been painted. Councilmember Woodruff stated in 2007 the City contributed money toward Carver County’s off-leash dog area in Lake Minnewashta Regional Park. Planning Commissioner Sue Davis (she was a Park Commissioner at that time) was heavily involved with that. He suggested the Park Commission invite Davis to come to a future meeting to discuss her experience with dog parks because she is a semi-expert in that area. In response to a question from Councilmember Hotvet, Commissioner Hartmann stated the Park Commission was advised about hockey rinks at Freeman Park by Director Brown and Director Nielsen. Hartmann noted that Nielsen provided three options of where a rink could be put in Freeman Park. Brown explained that there are watermain and sanitary sewer utilities under one area proposed for a hockey rink. Putting a rink there would drive the frost down and damage the utilities. Mayor Zerby asked if the cost to relocate the utilities would be prohibitive. Brown stated staff can make an attempt to estimate that cost. Hartmann asked where the free skating is located at Freeman Park. Brown stated an attempt was made to have a free skating area on the north side of the pavilion during the Arctic Fever event. Brown noted it was not that great. Brown explained that albeit subtle there is a necessary drainage swale that follows the north side of Eddy Station and drains that entire area. Councilmember Hotvet stated there is a warming house in Freeman Park. Therefore, she suggested there should be some type of skating there. Commissioner Hartmann concurred. Hartmann stated having something portable on the parking lot area makes sense to her, but she is not sure that would be feasible. Director Nielsen explained that discussing the location of a hockey rink at Freeman Park is a top priority on the Park Commission’s 2014 work program. Councilmember Siakel stated the next item on this agenda is to talk about a monument sign for Gideon Glen. The minutes of the last Park Commission meeting indicated that there had been discussion about a budget of $12,000 – $15,000 for the sign and parking at Gideon Glen and splitting that into $9,000 for the sign and installation in 2013 and $6,000 for parking in 2014. The amount for a sign seems like a lot to her. She asked Commissioner Hartmann if the vision for Gideon Glen is mapped out well. She questioned the appropriateness of putting up the sign this year. Commissioner Hartmann stated the Park Commission thought it appropriate to put up a sign similar to those put up for the other City-owned parks. She then stated many of the Commissioners want schools and students to come to Gideon Glen for educational purposes. The Commission had discussed the issue of handling buses. The area cannot accommodate a full-size bus. There could possibly be 2 – 4 parking stalls for cars, but busses would have to park across the street. Mayor Zerby stated the Skate Park project was a joint project with other South Lake communities; they also contributed to that. When it was done there was a lot of discussion with the residents near the area. There is a senior housing development nearby. A number of people expressed concern that their private road would be used as a turnaround. He encouraged the Park Commission to reach out to the residents near the Park. Commissioner Hartmann stated because of the size of the Skate Park and the fact that skateboarding has decreased dramatically, the Park Commission has been discussing how the Park can be used more effectively. Director Brown noted that area used to be an old rest stop area that was turned back over to the City. Zerby again encouraged the Commission to involve the residents. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES October 28, 2013 Page 4 of 13 B. Gideon Glen Sign Director Nielsen explained that the Park Commission has recommended the City install a monument identification sign similar to those in the other City parks at the Gideon Glen Open Space site. He noted the meeting packet contains a copy of a drawing of the proposed sign. The sign will say Gideon Glen in large letters. In smaller letters it will read “A Conservation Open Space Project” then “City of Shorewood in Partnership with Minnehaha Creek Watershed District”. He explained that because Gideon Glen is now part of the park system, the Commission thinks it should have a monument sign. There had been two projects for Gideon Glen scheduled this year; the sign and the parking lot. He then explained that the parking lot is being reviewed by the MCWD because a little bit of site alteration will have to be done. It would not happen until next year. He noted that it will be difficult to design a parking lot that would accommodate school busses. It is a dead end driveway and there is no a cul-de-sac at the end. The Commission thinks that the buses could drop the students off and then come back and pick them up. The parking lot will end up being three gravel parking spots with some curb stone. The Commission had originally shown in the Park Capital Improvement Program (CIP) an amount of $20,000 for the sign and parking lot. The Commission reduced that down to $15,000. The estimate for the sign is approximately $7,800. The Commission has recommended authorizing a not-to-exceed amount of $9,000. The hope is to have the sign made and installed for less than $8,000. Both the sign vendor and the masonry vendor have indicated they could get the work done this year if this is approved this evening. In response to a question from Councilmember Hotvet, Director Nielsen noted the intent is to locate the sign on the southeast corner of the site. It will be perpendicular to County Road 19. Because it will be a double sided sign it will be visible from both directions. Councilmember Woodruff stated installing the sign before the parking lot work is done will encourage people to come to the site. He recommended installing the sign and doing the parking lot work in 2014. Councilmember Siakel concurred. Councilmember Siakel stated that in the past there has been discussion about mitigating the issue of some areas being eroded and about landscaping needs at the site. There appears to be some other needs beside the sign and the parking lot that should be addressed for Gideon Glen as well. Director Nielsen noted that there is a tentative meeting scheduled for November 1 with the MCWD. He explained the management plan for Gideon Glen includes an annual meeting between City staff and MCWD representatives. Park Commissioner Kjolhaug will represent the Park Commission at that meeting. He stated a lot of what is involved with that property is maintenance. He noted he has spoken with Engineer Hornby about an engineering solution to mitigate the erosion problems. Director Brown stated Public Works has reestablished the areas that had eroded. He noted the site gets a fair amount of stormwater runoff from the area to the west. He stated that the verified claims approved this evening included an item for working with the MCWD’s Prairie Restoration consultant that came in to reseed some of the site. Councilmember Hotvet stated she agreed with delaying the sign this year. Councilmember Woodruff stated it is his understanding that the MCWD is responsible for vegetation management on the site. He questioned why the City paid for the prairie restoration work. Director Brown CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES October 28, 2013 Page 5 of 13 explained MCWD was responsible for the vegetation plan and maintenance. Brown then explained the City agreed to pay for the work because the seeding was needed because of excavating the pond and maintaining the pond. Woodruff then stated he agrees that something needs to be done to mitigate the erosion problems. He noted that Gideon Glen was never intended to be a park. If the City wants to make it a park with lots of activity there then consideration has to be given to what it will take to make that happen. Councilmember Sundberg stated she supports delaying the purchase and installation of the sign until 2014. Councilmember Siakel stated she thought the sign will be beautiful. But, it may be a little early to put it in. Councilmember Woodruff asked if Hennepin County will get upset because they will not be acknowledged on the sign. Director Nielsen responded the County’s contribution on the project was fairly minimal. The project was an effort between the City and the MCWD. There was Council consensus to delay the sign activities until the parking lot design has been completed. Administrator Joynes asked Director Nielsen if the sign and installation of it will have to be rebid in 2014. Director Nielsen stated Director DeJong just hold him that Council could approve the bid amount with the understanding that it will not be installed until 2014. Mayor Zerby asked if that commits the City to having the vendor who bid the work do the work. Councilmember Woodruff stated he would not consider it an issue if it cost a little more to accept the bid in 2014. He does not want to accept the bid now. 8. PLANNING A. MINOR SUBDIVISION Applicant: Margaret Prehall Location: 4828 Rustic Way Director Nielsen explained Margaret Prehall and her son Sam have applied for a minor subdivision to divide the property located at 4828 Rustic Way into two lots. As part of this request Council approved a request to vacate part of the right-of-way of Rustic Way earlier on the agenda. Both lots will exceed the minimum square foot requirements for the R-1D/S Single-Family Residential/Shoreland zoning district. Staff has worked with the applicant and his engineer to ensure the new lot would be buildable. One of the issues the applicant had to address is the driveway. There is a steep slope on the ROW going down to Rustic Way. Between the setting of the house and moving the driveway away from the corner of the intersection (it has to be 40 feet away from the corner of the intersection) they have come up with reasonable access to the site. Nielsen noted the Planning Commission has recommended approval of the minor subdivision. Woodruff moved, Siakel seconded, Adopting RESOLUTION NO. 13-071, “A Resolution Approving Subdivision of Real Property for Sam Prehall for the Property Located at 4828 Rustic Way.” Motion passed 5/0. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES October 28, 2013 Page 6 of 13 B. MINOR SUBDIVISION Applicant: Tom and Kelly Cooper Location: 22630 Murray Street This item was pulled from the agenda at the applicant’s request. It will be on the November 25 Council agenda instead. 9. ENGINEERING/PUBLIC WORKS A. Accept Proposal for Wellhead Protection Plan Part 2 Director Brown explained Part 1 of the Wellhead Protection Plan (WHPP) as mandated by the Clean Water Act included reviewing the available data, how groundwater moved on the subsurface and what the chemical characteristics are for that. The WHPP Part 2 involves taking the data and applying it to the City’s everyday operation. It will evaluate things such as how it is used in planning and how day-to-day operations are carried out. The memorandum authored by him and the proposal for doing that outline what has to be done. WSB & Associates’ proposal identifies how it intends to carry out each task and its cost for doing that is $14,955. He noted that this mandate is not negotiable with the Minnesota Department of Health or the federal government. He also noted that staff recommends approval of the proposal. Woodruff moved, Sundberg seconded, accepting the proposal from WSB & Associates for professional services for the Wellhead Protection Plan Part 2 for an amount not to exceed $14,955. Motion passed 5/0. B. Accept Change Order for 2013 Pavement Marking, City Project 13-09 Engineer Hornby stated the meeting packet contains a copy of a memorandum authored by him for Change Order No. 1 for the 2013 Pavement Marking Project for an amount of $1,383.72. That is for re- striping the parking lot for the City Campus parking areas. That striping had not been included in the original project scope. The unit price is a little higher for the Change Order because of the layout; a different type of machine needed to be used. The Change Order will increase the contract amount to $16,287.72 from the original amount of $14,884.00. Mayor Zerby stated he noticed there are new little arrows pointing to the Southshore Community Center. He thanked people for getting that done. Councilmember Woodruff asked where the funding for the additional striping will come from. Director Brown stated striping is paid for out of the same fund as other roadways improvements are paid for. Woodruff moved, Siakel seconded, Adopting RESOLUTION NO. 13-072, “A Resolution Approving Change Order No. 1 for 2013 Pavement Marking Project, City Project 13-09.” Motion passed 5/0. 10. GENERAL/NEW BUSINESS A. 2014 City of Minnetonka Tree Sale Administrator Joynes explained that in 2012 the City participated in the City of Minnetonka tree sale. The City sold 100 trees mainly to residents. The City did not participate in 2013. Staff is recommending the City participate in Minnetonka’s program in 2014. The trees have to be pre-ordered now. The City will CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES October 28, 2013 Page 7 of 13 inform its residents about this program in January and February 2014 and they can sign up to purchase the trees at that time. Staff is asking Council to approve an expenditure of $7,400 for the pre-purchase of the trees; it is the same amount approved in 2012. Hotvet moved, Siakel seconded, approving the City participating in the City of Minnetonka’s 2014 tree sale and authorizing staff to order trees for an amount not to exceed $7,400. Councilmember Siakel noted she totally supports participating in this program. She stated the City will be losing a lot of Ash trees in the south end of Freeman Park. She questioned if it may be beneficial to order replacement trees for the parks. She stated that maybe residents would be willing to donate a tree. Director Nielsen stated there is no money budgeted for Ash trees in 2013. A plan will be prepared for dealing with the Ash tree situation for the entire City with a concentration on Freeman Park. Director Nielsen noted that when the City participated in the program in 2012 it did order a few trees for use on public property. Deputy Clerk Panchyshyn stated she thought the City could order more than 100 trees but she has to verify that. Councilmember Siakel clarified she is talking about purchasing an extra 25 trees and publishing that there will be an opportunity for residents to purchase and then donate one of those trees. Director Nielsen noted there will be several areas for tree replacement in the City with one of them being the City Campus parking area. Administrator Joynes stated $7,400 should be enough to purchase 100 trees. He then stated 12 trees were purchased in 2012 for public use. He noted he thought all 100 trees could be sold this year. He stated there will be a much better tree replacement/needs plan available in 2014. Motion passed 5/0. 11. OLD BUSINESS A. Uniform Animal Ordinance Administrator Joynes explained the meeting packet contains a copy of a Uniform Animal Ordinance that has been discussed by the four South Lake Minnetonka Police Department (SLMPD) member cities for a number of years. The core of the Ordinance deals with nuisance animals. The impetus for this relates to a number of law suits and incidences that have occurred around the Twin Cities. The language in the member cities’ ordinances was not consistent and made enforcement of those ordinances more difficult for SLMPD personnel. The SLMPD Coordinating Committee has recommended the Ordinance as a core ordinance for nuisance animals with each member city having the ability to have an appendix where specific items to that city would be identified. Staff has identified a list of sections in the City’s current Ordinance that are different from the recommended Animal Ordinance. A copy of that information is included in the meeting packet. Staff is recommending some of the differences be included in an appendix. For other differences staff believes the changes are appropriate or they do not significantly change what is already in existing. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES October 28, 2013 Page 8 of 13 Joynes noted that staff is recommending Council approve the Uniform Animal Ordinance. The Excelsior City Council has already approved it and the Greenwood City Council will consider it during its November 6 meeting. The Tonka Bay City Council had a negative reaction to the Ordinance. Councilmember Woodruff stated the changes made to the Uniform Animal Ordinance since the last time Council discussed it have cleaned up a lot of things. He then stated that for the City, the Ordinance will add some control over the number of cats for the first time. He explained there is one cat boarding business in the City and the recommended Ordinance would make that business illegal. He cautioned against doing that. Earlier in the day he asked Director Nielsen to make a recommendation on how to address allowing a business to board cats in an appendix. Director Nielsen stated he has not had the opportunity to draft that language for inclusion in the appendix. He noted the way the Uniform Animal Ordinance is written would make the woman’s cat boarding business out of compliance. He explained the City has a multiple dog license. The City could also require a multiple cat license. In most cases that would require a conditional use permit (C.U.P.) or some other type of zoning action. The City does not allow dog kennels per se. The cat boarding business is effectively a cat kennel. Adding a simple provision to the appendix recognizing multiple cat licensing would address the business issue. Mayor Zerby suggested copying the language in Section 701.06 Limitations of Numbers of Dogs which states “… unless a multiple dog license is first obtained from the City” and including that same language for cats. Director Nielsen stated he thought the new language would be something shorter than that and noted that what applies to dogs only gets a person up to four dogs. The cat boarding business does board more than four cats. Zerby asked if the City allows dog boarding. Nielsen stated that would be a zoning issue as well; currently the City does not allow dog kennels as defined by the State. Administrator Joynes asked if by the City adding cats to the section Mayor Zerby referred to and adding a clause that in the case of cats there would not be a number limit would be adequate. Councilmember Hotvet asked if the SLMPD asked to add a cat clause. Director Nielsen stated no one knows where the cat restriction came from. Hotvet stated she finds that to be a little outrageous. Nielsen concurred. Councilmember Siakel noted this discussion about cat limits is about working with one resident. She asked what needs to be done to accommodate the existing cat boarding business. Administrator Joynes stated he would like to have the Uniform Animal Ordinance done. Councilmember Woodruff concurred. Councilmember Woodruff stated if the Ordinance is approved by Council now and then something is added to the appendix to address the cat boarding business at a later date with the understanding that there will not be an enforcement done on the existing business in the meantime he asked staff if that will cause any issues. Administrator Joynes stated he would be pleased if the Ordinance would be approved this evening. Councilmember Woodruff stated there have been numerous instances in the news over the last several years about cat hoarders and feral cats. Therefore, he thinks there is some validity to restricting the number of cats. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES October 28, 2013 Page 9 of 13 Zerby moved, Woodruff seconded, Approving ORDINANCE NO. 504, “An Ordinance Amending Chapter 701 of the Municipal Code Relating to Animal Regulations”, directing staff to propose language to address the cat boarding business issue in an appendix, and Adopting RESOLUTION NO. 13-073, “A Resolution Approving Publication of Ordinance No. 504 by Title and Summary.” Without objection from the maker, the motion was amended to include suspending enforcement of the Ordinance on the owner of the cat boarding business until the Ordinance is amended to make the business legal. Mayor Zerby noted that the SLMPD staff put a tremendous amount of time and effort into the Uniform Animal Ordinance. He explained the model ordinance used as a template came from some organization. The member City Administrators/Manager, some legal counsel and some member City Councilmembers had the opportunity to provide a tremendous amount of input into the Ordinance. He stated he does not think any ordinance is perfect the first time around. Therefore, he anticipates changes over time. He then stated he thought having more consistent animal enforcement regulations for the four SLMPD member cities will help the SLMPD. He noted that he whole heartedly endorses the Ordinance and making it work. Motion passed 5/0. Mayor Zerby asked Director Nielsen if the City has to do anything to rescind existing ordinances. He asked staff to work with the City Attorney about that. 12. STAFF AND COUNCIL REPORTS A. Administrator and Staff 1. Southshore Community Center Update Administrator Joynes stated staff and Councilmember Hotvet met with representatives from ICA Food Shelf about the ICA’s possible use of the Southshore Community Center (SSCC). He is not sure ICA’s needs fit with the idea of the SSCC. But, if it is to be pursued that would have to go back to the Southshore Center Advisory Committee. Joynes then stated the Minnetonka High School has put together a group of students that will work through its Vantage Program that will attempt to develop a business plan for the SSCC in conjunction with Minnetonka Community Education. Mayor Zerby stated the goal is to have the final report by early January. 2. Construction Update on Trail Projects Engineer Hornby explained staff had its weekly meeting with the contractor for the Smithtown Road west sidewalk project on October 24. The contractor has committed to have forces available to move the project forward. Quite a bit of the sidewalk has been put in. Tentatively the contractor is scheduled tomorrow to start pouring between the end just to the west of the wetland down to the border with the City of Victoria. That section is formed up. After that the contractor will concentrate at the LRT Trail and go west again. The contractor is going east to west to accommodate the construction trucks in the opposite direction. Approximately 4,000 feet of sidewalk is down. There is approximately 9,600 feet of sidewalk CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES October 28, 2013 Page 10 of 13 in total that will end up being put down, so close to one half of it is down. The contractor was to be on site late today to lay out some more form work. He reviewed some of the tasks that are remaining. Mayor Zerby thanked Director Brown for his efforts to get the contractor to pick up the speed on the project. Brown noted Engineer Hornby and others from WSB & Associates were present to support those efforts. Brown stated there had been some spirited discussions. Zerby then stated there had been a vehicular incident last week. He asked if staff has talked with South Lake Minnetonka Police Department (SLMPD) personnel about having a little extra help when managing traffic flow where there are big construction trucks in the area. Director Brown noted that SLMPD has been doing speed patrol in the project area. Brown explained that with regard to the incident that occurred on October 25 there is shared responsibility between the sweeper operator and the motorist making critical errors. There was nothing the SLMPD could have done to prevent that. Councilmember Woodruff stated staff had emailed to Council a very good memo about the status of the sidewalk project. The schedule included indicated there is some vegetation work that has to be done. That plan is to hydroseed to establish grass. He noted that a number of Councilmembers have indicated how pleased they were with the sodding that was done as part of the County Road 19 trail segment. He asked Council if hydroseeding is an appropriate vegetation plan for the sidewalk project. He noted that he understands that sod would be much more expensive. Woodruff then stated that a while ago, Council had talked about tree replacement for the Smithtown Road west sidewalk project. He doesn’t recollect any decisions being made. He asked if there is a tree replacement plan. Engineer Hornby noted there is not for this project. Hornby explained that in the preliminary design it was thought that a significant number of trees would have to be removed. The majority of trees that would have to have been removed were in the curve near the wetland. Those were on City-owned property. A lot of those trees that were removed were not high quality trees. A lot of trees that were located along the right-of-way were saved. Woodruff commented that he did not want a resident whose property abuts the project to be disappointed that the City was not replacing the trees. Hornby noted that an attempt was made to save a few more trees but residents asked that they be removed. 3. Federal Emergency Management Agency Disaster Update Director Brown stated the City has submitted its Federal Emergency Management Agency (FEMA) disaster request. Staff’s initial estimate right after the storm event was approximately $18,000 in cost. The final amount submitted to FEMA was $29,671.42. FEMA has approved that amount. Mayor Zerby thanked Director Brown for the great work. Other Administrator Joynes explained that based on previous discussions staff has assumed that the Mill Street trail segment will not be constructed anytime during the next two to three years. The City has a pending grant for that trail segment. Therefore, the City needs to notify Hennepin County that the City is not considering constructing the trail during the next few years. He noted he will do that unless Council tells him not to. Director DeJong stated staff has been having extensive discussions about the new financial software implementation. Staff is starting to work in earnest on that project with the vendor Springbrook. Staff will begin having weekly meetings with the vendor starting tomorrow. He then stated staff is pursuing an early CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES October 28, 2013 Page 11 of 13 renewal option for health insurance using the City’s health insurance broker. Quotes will be requested from HealthPartners, Preferred One and Blue Cross and Blue Shield. The City has already received Medica’s option for renewal. Director Nielsen stated a public hearing notice has been sent out for the residents near the Summit Woods proposed project area. The notice advised them that the Planning Commission’s meeting does not start until 8:00 P.M. on November 5 because of elections. He noted that Mayor Zerby had indicated his desire to have staff around between 7:00 P.M. and 8:00 P.M. Nielsen then stated the next Park Summit quarterly meeting will be held on November 19. B. Mayor and City Council Councilmember Siakel provided a little background on the Excelsior Fire District (EFD). The EFD’s fire services are provided by a volunteer force. There are currently 46 volunteer firefighters that provide fire services for the five member cities. They operate out of two fire stations. The firefighters receive an hourly call rate of pay (the 2013 rate is $10.40 per hour) and when vested they are entitled to a per-year- of-service (PYOS) pension benefit. The Excelsior Firefighters Relief Association (EFRA) manages its Special Fund for the firefighters’ pension. The member cities are required to make sure the Special Fund is 100 percent funded in order to meet the pension liabilities. There is an informal agreement between the EFD Board and the EFRA Board that the firefighters will not ask for an increase to the PYOS benefit unless the Special Fund is 110 percent funded. In 1996 the PYOS benefit was $2,600. It was increased in 1997, 1998, and 1999. It was increased to $4,700 in 2000 and it remained at that level through 2004. It was increased to $5,000 for 2005 and 2006. In 2007 it was increased to $6,250 and it has remained at that level. Now that the stock market has started to come back and the Special Fund is 118 percent funded the firefighters are asking for an increase in their benefit. Councilmember Siakel noted the increase in the PYOS benefit and funding of the Special Fund in excess of 100 percent were the main topics of discussion during the October 23, 2013, joint work session of EFD Board and EFRA Board. There was discussion about implementing a process that would allow the firefighters to get an increase in the PYOS benefit contingent upon the funding level being at a certain level. She also noted that she thought EFD Board Chair Miller did a very good job of running the work session. She explained that Chair Miller identified five EFRA benefit principles. They are as follows. 1. The EFD should be competitive so it can attract and retain high quality personnel. (The EFD relies on volunteers that live with a radius of close proximity to the fire stations. Firefighters are 60 percent vested after 10 years of service and are fully vested after 20 years. The fact that the firefighters have to negotiate with 25 council members for an increase to their PYOS seems arduous.) 2. The PYOS benefit should at a minimum be in pace with inflation over time. (The 2007 PYOS of $6,250 would have to be $7,111 now just to have kept up with inflation based on the CPI.) 3. Adequate controls over benefit increases should be put in place. (This includes doing an annual evaluation and modeling, and consulting with professional pension managers.) 4. The need for mandatory contributions from the EFD member cities in order to bring the Special Fund to a level where it is 100 percent funded should be minimized. (Because the stock market took a serious dive in 2008 the member cities had to make mandatory contributions in 2010 – 2013. Over the history of the Special Fund very few mandatory contributions have been necessary.) CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES October 28, 2013 Page 12 of 13 5. A financial model for long-term planning should be developed. The proposal discussed for a benefit policy during the work session was an increase of 3 percent when the coverage ratio is 115 percent, a 4 percent increase when the ratio is 120 percent, and a 5 percent increase when the ratio is 125 percent. An increase of 4 percent for 2014 – 2017 was also discussed to recover for no increases since 2007. The proposal was to increase the PYOS benefit by $250 in 2014. Siakel reiterated that she thought Chair Miller did a very good job of leading the meeting. She stated that EFD Boardmember Fletcher from Greenwood suggested some of the funding ratios. She thought the majority of those present at the work session agree with the recommendations. Siakel stated she thought it was important to share the big picture with Council. She asked the other Councilmembers to tell her what, if any, concerns they have about what is being proposed. She stated from her vantage point what the firefighters are asking for is completely fair. She noted that if the EFD were to be a full-time force it would cost the member cities at least triple the amount. She expressed support for agreeing to an increase in the PYOS benefit now and putting a process in place for consideration of future increases. Siakel stated a number of times she has heard during Council work sessions that when the bonded debt for the public safety facilities is paid off there will be a reduction in yearly expenses for the facilities of about $510,000 starting in 2023. She asked if that amount is for all five member cities. She noted that the City’s portion of the fire services budget for 2014 is 38.48 percent. Councilmember Woodruff stated he is 100 percent sure that the City’s portion of that reduction is $500,000. Administrator Joynes concurred. Woodruff stated he also attended the joint work session and he thought there was a lot of good discussion. He complimented Chair Miller for preparing the EFRA portfolio spread sheet that projects the impacts of various increases. He commented that he had questions and criticisms about various things. He stated the EFRA Board can increase the PYOS benefit at any time without EFD Board approval and noted the EFRA Special Fund is the EFRA’s money. The EFRA makes the decisions about how it invests its assets. He expressed a little concern that the 115 percent ratio for the Special Fund is too low to trigger a 3 percent PYOS benefit increase. He stated that although the EFRA owns the money the member cities own any shortfall. And, the City owns half the shortfall based on the EFD funding formula. Councilmember Siakel clarified the City owns about 38 percent. She asked what the City’s portion of the mandatory contributions have been the result of the market downturn. It’s her recollection that EFD Boardmember Fletcher stated Greenwood’s portion was about $13,000. She stated she thought a large portion of the mandatory contributions were paid for out of EFD operating fund reserves. She noted that over the many years of the EFRA’s existence the cities have not contributed a lot to the fund for pensions. Councilmember Woodruff reiterated when there is a shortfall in the EFRA fund for pensions the cities have to cover that. The firefighters can increase their PYOS benefit and when there is a shortfall the member cities have to make that up. He explained that normally he does not have a problem with that. But, when the value of the EFRA’s investments is suddenly impacted by market conditions it is out of the EFRA’s control yet the cities have to make good on it. He noted he wants a greater buffer than the 115 percent ratio for the start of increasing the benefit. He stated when he asked a question he was told by those in the know that the PYOS benefit is not an attraction issue when recruiting firefighters. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES October 28, 2013 Page 13 of 13 Councilmember Siakel stated in previous meeting there was discussion about what is needed to attract and retain firefighters and also about benefit increases. Mayor Zerby stated he believes retention is equally as important as recruitment. It should be easier to keep employees than it is to recruit new ones because of the experience existing firefighters have. He then stated it is the City’s choice to get their fire services from a volunteer force. From his perspective, the only way the City can afford to get those services is through a volunteer force. He went on to state to convert the pension model to a different model would present challenges. He also stated that for those firefighters who are very tenured with the District it is a small price to pay. He noted he thinks it is appropriate to give the firefighters an increase. Councilmember Woodruff stated the League of Minnesota Cities has a set of legislative policy proposals. He thought the emails have been sent to Councilmembers. He noted comments on them are due on November 1. He asked Councilmembers to copy him on any comments they have. Mayor Zerby asked staff to comment on them as well. Councilmember Sundberg asked if each member of Council gives their own personnel opinion. Mayor Zerby responded that is the way it has been done in the past. Mayor Zerby stated he attended a Lake Minnetonka Communications Commission (LMCC) meeting on October 15. He reported on that meeting. A small committee had been formed to look at production services costs. That equates to what the LMCC would charge affiliate member cities for services (cities that have left the LMCC joint powers organization to directly franchise with Mediacom yet want to use LMCC services). The LMCC adopted the fee for service scheduled recommended by that small committee. There was some discussion about distributing the LMCC reserve balance amongst the LMCC member cities. The cities leaving the LMCC want to deplete the reserves and have it split between the 17 member cities proportionally by weight. That discussion was postponed pending legal advice by LMCC because there is language in the LMCC joint powers agreement (JPA) that discusses that directly. Some of the member cities have approved the amendments to the JPA. Some cities have not taken action on them yet. Some of the cities who have submitted their notice to withdraw from the LMCC have made their withdrawal contingent on the approval of the amendments. That is a very tumultuous issue. 13. ADJOURN Hotvet moved, Siakel seconded, Adjourning the City Council Regular Meeting of October 28, 2013, at 8:34 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: City Hall December Holiday Schedule Meeting Date: November 12, 2013 Prepared by: Bill Joynes, City Administrator This year, the December holiday schedule provides for ½ day holiday on Tuesday, December 24 and a full day holiday on Wednesday, December 25. Over the past few years when the City has remained open on the morning of December 24, it has been staff’s experience that very little business occurs that morning, there is usually a skeletal crew working that day, as the majority of staff use a ½ day of vacation or personal holiday. As such, staff is requesting to officially close this year on Tuesday, December 24. City Hall Staff who choose to take ½ day off will use their personal time for the ½ day on December 24. As established by the Union contract, the Public Works Department will remain open for the ½ day on Tuesday, December 24. The Holiday closures are posted on the city website, in the newsletter and on the front door of City Hall. Council Action: A motion authorizing the official closure of City Hall for the entire day on Tuesday, December 24, and to allow staff to use vacation time, personal holiday, or comp time for the ½ day off. 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: Apple Road Streambank Stabilization Project – MCWD Funding Agreement Meeting Date: November 12, 2013 Prepared by: Paul Hornby Reviewed by: Attachments: MCWD Funding Agreement, Resolution Background: The City of Shorewood has been working with residents and the Minnehaha Creek Watershed District to design and construct an erosion stabilization project for the steep sloped ditch along Apple Road. As part of the project, the City and MCWD worked collaboratively to develop the design and work toward a shared funding opportunity. The Enclosed information includes the funding agreement prepared by the MCWD, providing reimbursement of project costs in the amount of $21,812.50 or 50% of the documented construction costs, whichever is less. The City Council has previously approved an “Easement for Access, Construction, and Maintenance, and Maintenance Declaration” (Easement) as the final approval step needed to obtain the MCWD permit to construct the project. The enclosed funding agreement (paragraph 3) includes a maintenance requirement that essentially requires the City to maintain the constructed project into perpetuity, similar to the Easement the City approved previously, but also includes a provision for repayment of grant funds if the City fails to maintain any portion of the project in accordance with the Easement. The repayment of grant funds terminates 10-years after substantial completion of construction. The funding agreement provides some benefit to the City by providing and an opportunity for a share of load allocation credit, which can be applied to the City requirements for meeting MCWD requirements. This will become more important for the City as regulations advance to reduce sediment and nutrient loading to protect downstream water bodies. The City and MCWD consultant on the project has previously calculated a load reduction of 39 Tons/Year of sediment and 7 Lbs/Year of phosphorus. The project has advanced since 2012, with selective clearing of trees, and bidding the grading work and rock grade control structure along the steepest slopes of the ditch channel. The grading and rock slope work has not been performed to date, but plans have been made to complete this work in the next few weeks. Financial or Budget Considerations: The City has received the cost share grant (pending approval of the funding agreement) as mentioned above with the MCWD, and has a BWSR grant through the Conservation Corps for providing labor for tree removal, seeding and plantings for the project. The project cost is currently estimated in the amount of $48,500, including a 3-year maintenance program allowance previously discussed with the City Council. Staff will also need to work with the residents directly affected by the project for the replacement of trees. 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 Maintenance will be an ongoing process for this project after construction as previously discussed in the Easement document, with a 3-year plant establishment monitoring and maintenance program, and erosion and planting maintenance by City crews after the plan establishment period has expired. It is anticipated the plant maintenance requirements will be reduced to a minimal requirement after the plant establishment period. The City is also required under the easement agreement to perform annual maintenance reporting to the MCWD. Options: The Council can consider the following potential action options or others actions as determined at the Council meeting: 1.Approve the funding agreement as prepared by the MCWD – The funding agreement has provisions for repayment of funds by the City to the MCWD for a ten year period for failure to maintain any portion of the project in accordance with easement and declaration. 2.Construct the project without MCWD funding – This option would allow the project to be constructed as a City project, with City funds and reduces the City obligations to the district for reimbursement of granted funds. Recommendation / Action Requested: Staff recommends, with concurrence of the City Attorney, that the Council authorize staff to construct the project without MCWD grant funding as indicated in Option 2, reducing the City obligations and liabilities to the MCWD for repayment of grant funds. FUNDING AGREEMENT APPLE ROAD STREAMBANK IMPROVEMENT PROJECT Between the Minnehaha Creek Watershed District and the City of Shorewood This Agreement is entered into by and between the Minnehaha Creek Watershed District, a special purpose district of the State of Minnesota with powers set forth at Minnesota Statutes chapters 103B and 103D (District), and the City of Shorewood, a statutory city and political subdivision of the State of Minnesota (City). The Agreement is entered into to provide for District reimbursement to the City for costs incurred by the City to construct streambank improvements on six properties: five in Shorewood, Hennepin County, Minnesota, at [ADDRESSES AND PIDs], and one in Chanhassen, Carver County, Minnesota, at [ADDRESS AND PID], each of which is separately owned in fee (the Properties). The District has determined the amount of funding that it will contribute on basis of the water-quality protection and improvement, public education and demonstration benefits that will be realized by approximately 650 feet of an eroded channel and establish 20 to 80 feet of upland native buffer along the channel to reduce phosphorus loading, erosion and sedimentation to Galpin Lake and Lake Minnetonka, a public water and major recreational water body (the Project). The District commits to reimburse the City in accordance with the terms and on satisfaction of the conditions of this Agreement. 1. Streambank Protection Project Design and Construction Plans and specifications for the Project are attached as Exhibit A (the Designs) and incorporated herein. The City will obtain and record an easement and declaration from the owner of each of the Properties providing the City with the legal rights necessary to construct and maintain the Project, committing the City to maintain the Project and allowing for placement of educational signage. Each easement and declaration entered by the City, the District and the owners of the Properties will materially conform to Exhibit B, attached to and incorporated into this Agreement. The City or its contractor will construct and complete the 1 of 6 Cost-Share Agreement City of Shorewood- November 10, 2013 Minnehaha Creek Watershed District Project in accordance with the Designs. The City will ensure construction of the Project in substantial conformity with Exhibit A and District rules. On completion of the Project, the City or its contractor will issue a certificate of substantial completion. The City will maintain a copy of the Designs and other records concerning the Project for six (6) years from the date the City receives or completes certification of the Project as complete for the intended purposes. The District and the State Auditor may examine, audit or copy any such records upon reasonable notice to the City. 2. Funding Within 30 days after the City submits the certification of substantial completion, an invoice or invoices for the Project and receipts of easement and declaration recordation or registration for each of the Properties as required by this Agreement and a maintenance declaration as required by District rules, the District will reimburse the City $21,812.50 or 50 percent of the documented costs for the Project, whichever is less. The invoice(s) will be accompanied by documentation of costs incurred in the design, construction and implementation of the Project and such other documentation as the District reasonably may request. The District may independently inspect the Project to confirm material conformance to Exhibit A. No reimbursement will be provided for partial construction of the Project. 3. Maintenance of the Project The City agrees to maintain the Project in perpetuity in accordance with the terms and conditions of the easements and declarations recorded pursuant to paragraph 1 of this Agreement . The District will work with the city and offer consultative resources to the City regarding ongoing maintenance techniques in the name of maintaining the partnership established t project. If the City fails to maintain any portion of the Project in accordance with Exhibit B, in addition to any other remedies, the District will have a right for 10 years from the date of certification of substantial completion to reimbursement by the City of all amounts paid by the District under this Agreement, unless the District determines that the City was prevented from maintaining the Project by causes beyond the Citycontrol. Failure to obtain and retain the necessary property rights (e.g., easements) required by this Agreement for the Project will not be considered a circumstance beyond the . in accordance 2 of 6 Cost-Share Agreement City of Shorewood- November 10, 2013 Minnehaha Creek Watershed District with Exhibit A through operation of law, including but not limit necessary property rights through foreclosure, will not be consi 4. Acknowledgment and Publicity The City, at its cost and in consultation with the District and the property owners, will create informational and educational signage and associated supporting structures of a reasonable size and place the signage at locations on the Properties where the signage is visible from public ways. Any publicly distributed or displayed printed or electronic documents or othe regarding the Project will acknowledge the funding provided by the District. The City will cooperate with the District to seek publicity and media coverage of the Project and will cooperate with District education efforts related to th. 5. Independent Relationship The District the use, maintenance, demonstration and dissemination of information about innovative approaches to channel restoration and stabilization. The District has not had and does not have any authority to select, or role in se design, means, method or manner of performing any work or the person or firm performing the work. No employee, representative, contractor or consultant any party to this Agreement has acted or may act in any respect as th representative of the other party. Any right to review or approve a design, work in progress or constructed facility under this Agreement by the District or its agent, representative or consultant is solely for the District accounting for District funds expended. Neither the City nor the District agrees to be responsible for the acts or omissions of the other, within the meaning of Minnesota Statutes section 471.59, subdivision 1a. The City will identify, determine the applicability of and conform to legal requirements applicable to its activity under this Agreement, including any District permit requirements. 6. Load Allocation Credit The terms and water management plan include, among other requirements, that th reduce the rate at which phosphorus is contributed to water reso 3 of 6 Cost-Share Agreement City of Shorewood- November 10, 2013 Minnehaha Creek Watershed District ER] pounds per [TIME PERIOD]. The District agrees to credit City for the documented phosphorus load reduction from the Project for purposes of meeting load reductions allocat District Comprehensive Water Resource Management Plan and for ot water- quality measurement purposes. The portion credited to the City will be equal to the total load reduction from the Project multiplied by the perc costs, in accordance with Exhibit A, not reimbursed by the District. The District will retain credit for the portion of the load reduction equal to the tot reduction from the Project multiplied by the percentage of the Pcosts, in accordance with Exhibit A, reimbursed by the District. Measurement and documentation of phosphorus reductions achieved are the responsibility of the City, and must be provided to the District, along with such othe as the District reasonably may request, for the purposes of this 7. Remedies; Immunities Only contractual remedies are available failure to fulfill the terms of this Agreement. Notwithstanding any other term of this Agreemenneither party waives any immunities in tort. This Agreement creates no right in and waives no immunity, defense or liability limitation with respect to any third party. 8. Indemnification The City will hold harmless, defend and indemnify the District, its managers, employees, agents and representatives against any and all claims Agreement, except as results from willful or gross negligence. 9. Effective Date; Expiration; Survival of Obligations The Agreement is effective when fully executed by the parties and expires five years thereafter or when reimbursement has been paid under parag whichever occurs first. Obligations that have come into being before expiration of this Agreement, specifically including but not limited to obl paragraphs 3, 4, 7 and 8 shall survive expiration. 4 of 6 Cost-Share Agreement City of Shorewood- November 10, 2013 Minnehaha Creek Watershed District 10. Equal Opportunity In constructing the Project, the City will ensure that no person was or is excluded from full employment rights or participation in or the program, service or activity on the ground of race, color, creed sex, disability, marital status, sexual orientation, public assi national origin; no person who is protected by applicable federal or state law rules or regulations against discrimination otherwise has been o subjected to discrimination. 11. Notices Any written communication required under this Agreement will be the other party as follows, except that a party may change its addre by so notifying the other party in writing: To District: Administrator Minnehaha Creek Watershed District 18202 Minnetonka Boulevard Deephaven, MN 55391 To City: Administrator City of Shorewood ADDRESS 11. Waiver of any obligation under this Agreement, or to exercise any option, remedy or right herein, will not waive or Agreement will not be construed as a waiver of any subsequent breach of that or any other obligation. A waiver must be in writing and signed by 5 of 6 Cost-Share Agreement City of Shorewood- November 10, 2013 Minnehaha Creek Watershed District IN WITNESS WHEREOF, intending to be legally bound, the parties hereto execute and deliver this Agreement. ______________________________________ City Attorney CITY OF SHOREWOOD ______________________________________ Date: By: ___________________________ Its: ___________________________ ______________________________________ District Attorney MINNEHAHA CREEK WATERSHED DISTRICT ______________________________________ Date: By: L. Eric Evenson Its: Administrator 6 of 6 Cost-Share Agreement City of Shorewood- November 10, 2013 Minnehaha Creek Watershed District EXHIBIT A THE DESIGNS Cost-Share Agreement City of Shorewood- July 31, 2012 Minnehaha Creek Watershed District EAM8/19/2011 Apple Road Channel Stabilization - Engineering Cost Estimate Shorewood, MN EAMMileage $170 Tasks 1. Get topographic, soils, subwatershed boundary2 current and future land use, air photo 2. Calculate 2,5, 10 and 100 year flow, depth, velocity and shea4 at upstream and downstream locations 3. Screen bioengineering alternatives2 4. Lay out two design options on plan and profile.6 5. Estimate quantities and material cost. 4 6. Describe proposed project with work and labor between city an3 7. Walk site to verify designs and count trees for removal.3$15 8. Meet city and watershed staff to discuss options.3$15 9. Prepare design memorandum4 Total hours31$30 Cost labor$5,270 Mileage$30 Total design cost$5,300 Assumptions: 1. Tree removal/thinning will be allowed. 2. The city has access to the channel. 3. channel length approximately 650ft. Revegetation Plan & Budget April 16, 2012 Phase I: Fall Seeding $ 2,750.00 Upon completion of the dirt work and placement of the rip rap an installations will be completed with the same seed mix. The rip rap installed for vegetated rip rap will be covered with 4 of topsoil and allowed to settle into the rip rap, creating pockets of soil for plants to grow in. The see of soil. The areas outside of the stream channel will also be seeded. Preparation of the site will re out the leaf layer on the ground to remove the cover and allow lSeed will be hand broadcast over the top of the soil and will be lightly raked into the base soils. Some of the removed leaf litter will be broadcast to act as mulch over the new seeds in the wooded areas. Erosion con will be used as mulch over the seeding done in and near the chan With both plantings, some germination may occur in the fall, but most of these plants are native and will not germinate until the spring after they have been exposed to c dormancy. The plants selected for the seed planting are mostly g Forbs Species Common NameSpecies Scientific Name Arrow-leaved Aster Aster sagittifolius Honewort Cryptotaenia canadensis Sweet Joe Pye Weed Eupatorium purpureum White Snakeroot Eupatorium rugosum Sweet Cicely Osmorhiza claytonii Wild Golden Glow Rudbeckia laciniata Early Figwort Scrophularia lanceolata Grasses Species Common NameSpecies Scientific Name Hairy Wood ChessBromus purgans Sprengel's Sedge Carex sprengelii Silky Wild Rye Elymus villosus Virginia Wild Rye Elymus virginicus Bottlebrush GrassHystrix patula Phase IIa: Spring Plug Planting $ 750.00 In the following spring, a crew will return to plant plugs of pla propagate from seed, but compliment the seed mix as a plant comm basswood forest floor. The planting will focus on bare areas where seed did not germinate with locations to be field verified. Plants will be planted about 5 apart, within the zones indicate plan, to allow for natural migration and establishment of coloni Planting these plugs in the spring when conditions are generally more wet, will help their survivability witho watering. Ideally no watering is needed, but if the spring is dr Final plant species selection for the plug planting will be determined after a spring-time inspection of the seed success and will likely include: Forbs Species Common Name Species Scientific Name Jack-in-the-Pulpit Arisaema triphyllum Trout Lilly Erythronium albidum Wild Geranium Geranium maculatum Bloodroot Sanguinaria canadensis False Solomon's Seal Smilacina racemosa Ferns Species Common Name Species Scientific Name Athyrium felix-femina Lady Fern Onoclea sensibilis Sensitive Fern Phase IIb: Spring Bare-Root Planting $ 250.00 Also in the spring, the crew will plant bare root shrubs, as indicated on the plan. Shrubs will be clustered in groups of 5 to 9 shrubs along the channel and in the vegetated rip rap where possible to the banks. Shrub species selected include: Shrubs Species Common NameSpecies Scientific Name Gray DogwoodCornus racemosa Red Osier DogwoodCornus sericea Dwarfbush HoneysuckleDiervilla lonicera Revegetation Total $ 3,750.00 6/5/2012 Apple Road Channel Stabilization - Construction Cost Estimate Shorewood, MN Extended ItemUnitsQuantityUnit PriceAmount MobilizationEach1$9,500.00$9,500.00 GeotextileSY325$2.00$650.00 Type II riprapTon175$65.00$11,375.00 Type III riprapTon90$65.00$5,850.00 Boulder Ton55$110.00$6,050.00 Sedimentation BasinCY115$10.00$1,150.00 Total$34,575.00 EXHIBIT B FORM OF EASEMENT AND DECLARATION Cost-Share Agreement City of Shorewood- July 31, 2012 Minnehaha Creek Watershed District EASEMENT FOR ACCESS, CONSTRUCTION AND MAINTENANCE, AND MAINTENANCE DECLARATION THIS EASEMENT AND DECLARATION is made by and among [PROPERTY OWNER(S), a married couple/an individual] (Grantor), the City of Shorewood, a statutory city and political subdivision of the State of Minnesota (Grantee), and the Minnehaha Creek Watershed District, a special purposes local governmental unit under Minnesota Statutes chapters 103B and 103D (District). RECITALS A. Grantor is the owner in fee simple of real property platted and legally described in Exhibit A attached hereto and incorporated herein (Property); B. Grantor hereby grants to Grantee the Easement and Declaration described herein to facilitate the channel stabilization shown in Exhibit B, attached to and incorporated into this easement and declaration (the Project); C. Completion of the Project benefits Grantor by stabilizing and improving the Property and benefits the Grantee and the District by establishing long-term reduction of pollution and phosphorus in stormwater runoff draining to Galpin Lake and Gideon Bay of Lake Minnetonka and improving water quality for the benefit of the public; and D. The parties acknowledge in executing this Easement and Declaration that sufficient consideration has been paid and received by the parties, and this Easement and Declaration sets forth obligations that are duly binding on each party. NOW, THEREFORE, in consideration of the foregoing recitals, which are incorporated into and made a part of this Easement and Declaration, and one dollar and other good and valuable consideration, the parties hereto agree as follows: 1 1.Easement Grant of Easement a.. Grantor hereby grants and conveys to Grantee, its successors and assigns, easements over, under, upon and across that portion of the Property shown in and described by Exhibit B, attached hereto and incorporated herein, for purposes of access, construction, and continuing maintenance of the Project (the Easement). The Easement includes the right to plant, install stabilization techniques, alter the existing grades and perform grading or filling within the Easement as necessary to achieve the intended purposes of the Project. The rights granted hereby include the right of ingress, egress and passage over and through the Easement to complete and maintain the Project and the right to lay and maintain temporary utilities across or above the surface of the Easement for purposes of construction and maintenance of the Project. Restrictions on Grantor’s Use of Easement. b. Grantor shall not use the Easement area or permit the construction of any improvements within the Easement in any manner that would or could reasonably be expected to damage or interfere with the Project. Grantor is not divested of the right to use and enjoy the Property and the Easement area for other purposes, but such use and enjoyment is subject to the restrictions stated herein and may not interfere with Grantee’s use of the Easement for the purposes herein expressed. c.In the event the Property is damaged by the activities of Grantee or its contractors, agents or assigns relating to, or arising from, the exercise of any of Grantee’s rights under this Easement, Grantee will promptly repair or restore the damage to the extent reasonably practicable. Grantee will repair, seed or plant disturbed or damaged areas with vegetation suitable for the intended uses of the Easement. Grantor agrees and acknowledges that Grantee is not responsible for any pre-existing conditions on the Property, environmental or otherwise, or for any damage to the Property arising out of or related to such preexisting conditions. 2.Declaration; Grantee’s Maintenance Obligations a.Grantee will maintain the Project as follows: i.First year following completion of the Project: 1.Watering will occur as needed to ensure new plantings receive approximately 1” of water per week. When feasible, watering will occur early in the morning and avoided from 12:00 pm to 5:00 pm. 2.The project area will be inspected for weeds at least once every month. Weeds will be hand pulled or spot treated with aquatic formulations of herbicide according to instructions on the herbicide label. ii.Second year following completion of the Project: 1.Watering will occur as needed to ensure plantings receive approximately 1” of water per week. When feasible, watering will occur early in the morning and avoided from 12:00 pm to 5:00 pm. 2 2.The project area will be inspected for weeds at least once every month. Weeds will be hand pulled or spot treated with aquatic formulations of herbicide according to instructions on the herbicide label. 3.Upland and streambank plantings will be replaced and seeded areas will be reseeded as necessary in the spring and fall. iii.Third year following completion of the Project: 1.The project area will be inspected for weeds at least once every two months. Weeds will be hand pulled or spot treated with aquatic formulations of herbicide according to instructions on the herbicide label. 2.Upland and streambank plantings will be replaced and seeded areas will be reseeded as necessary in the spring and fall. iv.Thereafter: 1.The project area will be inspected at least annually and any erosion or structural problems observed will be corrected within 30 days of inspection to establish and maintain a naturalized, ecologically healthy streambank that is structurally stable and resistant to erosion. 2.Grantee will submit to the MCWD annually a brief written report that describes the maintenance activities performed, including dates, locations of inspection, maintenance activities performed; notes on successful species, weed problems, disturbances issues (animal or human) and management needs; and photographs of the project area. 3.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. 4.All planted and seeded areas will be maintained in perpetuity free from mowing or other vegetative disturbance, except as specified herein, fertilizer application, yard or other waste disposal, and the placement of structures or any other alteration that impedes the function of the streambank in protecting water quality, shading the riparian edge, moderating flow into any adjacent wetland or waterbody, or providing wildlife habitat. 5.Upland and streambank plantings will be replaced and seeded areas will be reseeded as necessary in the spring and fall of each year in accordance with the approved plan to maintain the ecological health and function of the streambank. b.Violation of any provision of this Declaration is a violation of the Declaration as well as a violation of the District permit for the Project for which the District may take action against the Grantee and/or owner of the Property. 3. Signage. Grantee, at its cost, may place informational and educational signage of appropriate size and characteristics and associated supporting structures of a reasonable size at a location on the Property visible to the public. Grantor reserves the right to review and approve any sign to be placed on the Property pursuant to this provision, such approval not to be unreasonably withheld. Grantor permits Grantee and District representatives and assigns to enter the Property at reasonable times to inspect the Project and monitor or take samples for the purposes of assessing the performance of the Project. On reasonable notice to Grantor, representatives of the Grantee or the District may accompany members of the public onto the Property to view the Project from time to 3 time. Nothing in this Easement and Declaration will be construed to create a right of public access to the Property except as coordinated with Grantor and accompanied by a representative of Grantee or the District. 4. Insurance . Grantee will require its agents and contractors to carry worker's compensation insurance as required by applicable law and liability coverage for injury to or death of a person or persons and for damage to property occasioned by the performance of the Project. Grantor will remain solely responsible for maintaining liability and other insurance for its own uses of and authority over the Property. 5. Running with the Land . This Easement and Declaration runs in perpetuity with the land and inures to the benefit of and be binding upon the parties hereto and their respective heirs, successors and assigns including but not limited to all subsequent owners of any portion of the Property affected by the Easement and Declaration, and all persons claiming under them. 6. Severability. If any one or more of the provisions of this Easement and Declaration, or the applicability of any such provision to a specific situation, is held invalid or unenforceable, such provision will be modified to the extent necessary to make it or its application valid and enforceable, and the validity and enforceability of all other provisions of this Easement and Declaration and all other applications of any such provision will not be affected thereby. 7. Governing Law. The Easement and Declaration will be construed and governed by the laws of the State of Minnesota. 8. No Waiver of Immunity . No provision of this Easement and Declaration will be interpreted as a waiver of any statutory or common law immunity from or limitation of liability available to Grantee or District, all such immunities and limitations being expressly reserved by Grantee and District. 9. Recording. Grantee may record and rerecord this Easement and Declaration. IN WITNESS WHEREOF, the undersigned have executed this Easement and Declaration with the intent to be legally bound by its terms as of the date this Easement and Declaration is fully executed by the parties. GRANTOR: [NAME(S) OF PROPERTY OWNER(S)] By ____________________ and By _____________________ 4 STATE OF MINNESOTA COUNTY OF HENNEPIN This instrument was acknowledged before me this ___ day of ________, 2013, by ___________ and ____________, husband and wife. _________________________________________ Notary Public GRANTEE: City of Shorewood __________________________________ Date: ________________ By: Scott Zerby Its: Mayor __________________________________ Date: _________________ By: William Joynes Its: City Administrator STATE OF MINNESOTA COUNTY OF HENNEPIN This instrument was acknowledged before me this ___ day of ________, 2013, by Scott Zerby, as mayor of the City of Shorewood, a municipal corporation under the laws of the State of Minnesota on behalf of the municipal corporation. ________________________________ Notary Public STATE OF MINNESOTA COUNTY OF HENNEPIN This instrument was acknowledged before me this ___ day of ________, 2013, by William Joynes as City Administrator of the City of Shorewood, a municipal corporation under the laws of the State of Minnesota on behalf of the municipal corporation. ________________________________ Notary Public 5 BENEFICIARY: Minnehaha Creek Watershed District __________________________________ Date: ________________ By: L. Eric Evenson Its: Administrator STATE OF MINNESOTA COUNTY OF HENNEPIN This instrument was acknowledged before me this ___ day of ________, 2013, by L. Eric Evenson, as administrator of the Minnehaha Creek Watershed District, a municipal corporation under the laws of the State of Minnesota on behalf of the municipal corporation. ________________________________ Notary Public This document prepared by: 6 #10A MEETING TYPE City of Shorewood Council Meeting Item Regular Meeting Title / Subject: Lake Minnetonka Regional Scenic Byways Concept Meeting Date: November 12, 2013 Prepared by: Bill Joynes, City Administrator Policy Consideration: Should the City of Shorewood designate a representative to attend an informational meeting on the Lake Minnetonka Regional Scenic Byways initiative? Background: Attached is a request from the City of Wayzata Mayor, Ken Willcox, that the City of Shorewood provide a representative to participate in an initial informational meeting about the Lake Minnetonka Regional Scenic Byway initiative. For further background, the initial letter sent by Mayor Willcox to the City of Shorewood in May, 2013, is also attached. Council Action: Should Council decide to identify a representative, staff will notify the City of Wayzata with the contact information, as requested. 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 October 23, 2013 The Honorable Scott Zerby City of Shorewood 5755 Country Club Road Shorewood, MN 55331 Re: Follow up on Lake Minnetonka Regional Scenic Byway Concept The Honorable Mayor Zerby: On June 4"', I wrote to you to gauge your interest in working with the other thirteen Lake Minnetonka communities on a Lake Minnetonka regional scenic byways initiative for branding and marketing opportunities. Since that time, we have been in contact with a representative from MnDOT's Scenic Byway Program to gather additional information on the process for submitting an application for a state -level scenic byways designation for the Lake Minnetonka area. We have received word that the commissioners of the program would be supportive of an application from this region. If approved, only cost implications would be for sign fabrication and marketing of the designation. The cost of the signs would be dependent on their design and how many are created for this effort. By way of background, a state - level scenic byway designation is a tool to recognize important cultural, historic, natural, recreational, and archaeological locations that have exceptional interest in the state. Typically, a state - level scenic byway designation is pursued by a partnership of communities and organizations to conduct grassroots marketing, tourism, and economic development efforts. Similar state -level scenic byway designations have been implemented along the North Shore, the Minneapolis Grand Rounds, and along the St. Croix. We view the Lake Minnetonka area as having the same historic and recreational importance to both the region and the state. We believe there is an opportunity to enhance the Lake Minnetonka brand by showcasing the area's important amenities and points of interest that are connected on historic roadways throughout our communities. As with any endeavor like this, there are many considerations for Lake Minnetonka communities regarding whether to collaborate in a joint scenic byway designation. Below is my take on of some of the items to consider: Potential for collaborative community branding and marketing of regional assets to constituents and visitors. Financial commitment for sign fabrication and marketing of designation. The individual communities can decide for themselves how much marketing they want to make of the scenic byway designation. Scenic Byways designation does not create additional regulations or obligations on the scenic roadway itself or amenities that may be tied with it. Phone: 952 -404 -5300 Tax 952404-5318 e -mail: city@wayzata.org home page: www.wayzata.org Mayor: City of Wayzata Ken Willcox 600 Rice Street City Council: Jack Amdal Wayzata, MN 55391 -1734 Andrew Mullin 'rom Tanner Bridget Anderson City Manager: Heidi Nelson Re: Follow up on Lake Minnetonka Regional Scenic Byway Concept The Honorable Mayor Zerby: On June 4"', I wrote to you to gauge your interest in working with the other thirteen Lake Minnetonka communities on a Lake Minnetonka regional scenic byways initiative for branding and marketing opportunities. Since that time, we have been in contact with a representative from MnDOT's Scenic Byway Program to gather additional information on the process for submitting an application for a state -level scenic byways designation for the Lake Minnetonka area. We have received word that the commissioners of the program would be supportive of an application from this region. If approved, only cost implications would be for sign fabrication and marketing of the designation. The cost of the signs would be dependent on their design and how many are created for this effort. By way of background, a state - level scenic byway designation is a tool to recognize important cultural, historic, natural, recreational, and archaeological locations that have exceptional interest in the state. Typically, a state - level scenic byway designation is pursued by a partnership of communities and organizations to conduct grassroots marketing, tourism, and economic development efforts. Similar state -level scenic byway designations have been implemented along the North Shore, the Minneapolis Grand Rounds, and along the St. Croix. We view the Lake Minnetonka area as having the same historic and recreational importance to both the region and the state. We believe there is an opportunity to enhance the Lake Minnetonka brand by showcasing the area's important amenities and points of interest that are connected on historic roadways throughout our communities. As with any endeavor like this, there are many considerations for Lake Minnetonka communities regarding whether to collaborate in a joint scenic byway designation. Below is my take on of some of the items to consider: Potential for collaborative community branding and marketing of regional assets to constituents and visitors. Financial commitment for sign fabrication and marketing of designation. The individual communities can decide for themselves how much marketing they want to make of the scenic byway designation. Scenic Byways designation does not create additional regulations or obligations on the scenic roadway itself or amenities that may be tied with it. Phone: 952 -404 -5300 Tax 952404-5318 e -mail: city@wayzata.org home page: www.wayzata.org Potential for additional visitor traffic to individual communities to see points of interest or amenities that are along the regional scenic byway. Again, this depends on each community's level of marketing of these amenities. The participating communities would have to decide how many signs to put along the roadway and where to place them. If signs are to be placed on County Roads, we would need to secure ROW permits from the County transportation department. In terms of next steps in the process, we would like to coordinate a meeting of all the lakeshore communities and the MnDOT Scenic Byway Program Coordinator to discuss the scenic byway process further, provide information, and answer any questions. If you would consider designating a representative for your community to attend this informational meeting to be scheduled before the end of the year, we will communicate directly with your designated representative. Please send contact information for your representative to Bryan Gadow at bgadow cewayzata.ore. If you have questions regarding MnDOT's Scenic Byway program, please contact the Scenic Byway Program Coordinator or visit their website ( http:// www. dot.state.nin.us /seenicbvways/) at the following: Ms. Holly M. Slagle Scenic Byway Program Coordinator Office of Environmental Stewardship Minnesota Department of Transportation 395 John Ireland Blvd, Mail Stop 620 St. Paul, MN 55155 651- 366 -3623 HoI1v.Slagle a state.inn.us http://www.dot.state.mn.us/seenicbyways I would also be pleased to discuss this further with you in the coming weeks. Feel free to contact me at 952- 922 -5569 or KenwillcoxL&wayzata.org. If you have any questions, please do not hesitate to contact me. Sincerely, Ken Willcox Mayor Phone: 952 -404 -5300 Fax: 952404-5318 email: city @wayz.am.org home page: www.wayzamnug Mayor: City of Wayzata Ken Willcox 600 Rice Street City Council: Jack Amdal Wayzata, NM 55391 -1734 Andrew Mullin Tom Tanner Bridget Anderson City Manager: Heidi Nelson Potential for additional visitor traffic to individual communities to see points of interest or amenities that are along the regional scenic byway. Again, this depends on each community's level of marketing of these amenities. The participating communities would have to decide how many signs to put along the roadway and where to place them. If signs are to be placed on County Roads, we would need to secure ROW permits from the County transportation department. In terms of next steps in the process, we would like to coordinate a meeting of all the lakeshore communities and the MnDOT Scenic Byway Program Coordinator to discuss the scenic byway process further, provide information, and answer any questions. If you would consider designating a representative for your community to attend this informational meeting to be scheduled before the end of the year, we will communicate directly with your designated representative. Please send contact information for your representative to Bryan Gadow at bgadow cewayzata.ore. If you have questions regarding MnDOT's Scenic Byway program, please contact the Scenic Byway Program Coordinator or visit their website ( http:// www. dot.state.nin.us /seenicbvways/) at the following: Ms. Holly M. Slagle Scenic Byway Program Coordinator Office of Environmental Stewardship Minnesota Department of Transportation 395 John Ireland Blvd, Mail Stop 620 St. Paul, MN 55155 651- 366 -3623 HoI1v.Slagle a state.inn.us http://www.dot.state.mn.us/seenicbyways I would also be pleased to discuss this further with you in the coming weeks. Feel free to contact me at 952- 922 -5569 or KenwillcoxL&wayzata.org. If you have any questions, please do not hesitate to contact me. Sincerely, Ken Willcox Mayor Phone: 952 -404 -5300 Fax: 952404-5318 email: city @wayz.am.org home page: www.wayzamnug 10B MEETING TYPE City of Shorewood Council Meeting Item Regular Meeting Title / Subject: Certification of Delinquent Charges Meeting Date: November 12, 2013 Prepared by: Bruce DeJong, Finance Director Reviewed by: Michelle Nguyen Attachments: Certification List Policy Consideration: Should the City certify delinquent charges to the County to be collected with the other taxes on the property? Background: State statute and city code allow delinquent charges to be certified to the County Auditor. It is our standard practice to certify delinquent charges to Hennepin County each year. The County will certify these items to the property taxes and remit payments to us when they are received. Financial or Budget Considerations: Other collection methods are more expensive and time consuming. There is no guarantee that staff phone calls or the use of collection agencies will generate the same amount of revenue as certification. Options: The City Council may choose to: 1.Accept the staff recommendation and adopt the attached resolution. 2.Remove specific accounts from the certification roll and accept the remainder of the accounts and adopt the amended resolution. 3.Do not adopt the resolution and direct staff to attempt collection through other methods. Recommendation / Action Requested: Staff recommends that the City Council adopt the resolution as submitted by staff. Next Steps and Timelines: Staff will proceed with the certification process to meet Hennepin County and statutory deadlines. Connection to Vision / Mission: This process contributes to sound financial management through efficient collection of utility bills. CITY OF SHOREWOOD RESOLUTION NO. 13-___ A RESOLUTION DIRECTING DELINQUENT CHARGES BE PLACED ON THE 2013 PROPERTY TAX ROLLS WHEREAS , Shorewood City Code provides for the City to place delinquent sanitary sewer charges, water, storm water management utility charges, recycling charges, dry hydrant charges, and other delinquent charges for city services on the succeeding year property tax rolls for the specified properties; and, WHEREAS , the City Council has scheduled the consideration of the certification of such charges and has caused notice of such charges to be mailed to the affected property owners; and, WHEREAS , the Council has considered such charges at a regular council meeting and has made a determination that delinquent utility charges exist for the specified properties set forth below, NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Shorewood as follows: Levy 18698 –Water $8,734.87 Levy 18699 –Sewer $27,992.04 Levy 18700 –Stormwater $7,657.37 Levy 18701 –Recycling $6,312.58 That the Hennepin County Special Assessment Division is hereby authorized to certify the delinquent charges, on the 2013 property tax rolls, payable in 2014, for the following services: th ADOPTED BY THE CITY COUNCIL of the City of Shorewood this 12 day of November, 2013. _________________________________ ATTEST: Scott Zerby, Mayor _________________________________ Jean Panchyshyn, City Clerk MUNIC CODE 26LEVY NO 18698 EXHIBIT AWATER PID NO.ACCOUNT NO.TOTAL PRINCIPAL 33-117-23-12-008102-180003-00 251.37 34-117-23-24-003302-945014-01 182.94 31-117-23-14-002603-080005-00 488.13 32-117-23-44-001503-085013-00 580.69 32-117-23-34-000903-160004-00 725.61 32-117-23-24-002403-507001-00 1,185.82 32-117-23-43-003703-600210-00 550.00 32-117-23-43-005403-600215-01 246.42 31-117-23-43-001003-775234-02 307.55 32-117-23-14-001503-930201-00 192.45 25-117-23-33-008004-270203-03 1,131.72 36-117-23-12-002504-560106-00 729.67 25-117-23-44-005604-705010-00 419.74 25-117-23-44-002604-710111-00 114.11 25-117-23-44-006304-886005-00 393.02 36-117-23-14-005204-889126-00 273.20 25-117-23-43-004404-897103-00 14.38 25-117-23-43-005804-897119-01 93.40 34-117-23-31-001905-005204-01 366.84 34-117-23-31-001505-325001-00 182.53 35-117-23-33-002208-800203-00 305.28 TOTALLEVY NO 18698$ 8,734.87 MUNIC CODE 26LEVY NO 18699 EXHIBIT BSEWER PID NO.ACCOUNT NO.TOTAL PRINCIPAL 33-117-23-12-008102-180003-00 254.87 34-117-23-24-002602-945011-00 64.79 34-117-23-24-003302-945014-01 314.17 34-117-23-24-003102-945022-05 262.72 31-117-23-14-002603-080005-00 404.92 32-117-23-44-001503-085013-00 411.26 32-117-23-34-000903-160004-00 470.10 32-117-23-24-002403-507001-00 411.64 32-117-23-43-003703-600210-00 423.82 32-117-23-43-005403-600215-01 357.36 31-117-23-43-001003-775234-02 224.95 32-117-23-14-001503-930201-00 281.41 36-117-23-44-002704-130002-00 - 25-117-23-33-008004-270203-03 357.36 36-117-23-12-002504-560106-00 470.10 25-117-23-44-005604-705010-00 412.22 25-117-23-44-002604-710111-00 412.20 25-117-23-44-006304-886005-00 412.09 36-117-23-14-005204-889126-00 411.37 25-117-23-43-004404-897103-00 52.71 25-117-23-43-005804-897119-01 161.70 34-117-23-31-001905-005204-01 431.71 34-117-23-31-001505-325001-00 391.29 35-117-23-33-002208-800203-00 470.10 33-117-23-12-001410-015202-01 387.67 33-117-23-12-001310-015203-00 357.36 33-117-23-12-001710-015205-00 412.19 28-117-23-33-000710-045207-00 378.89 29-117-23-44-003710-045210-02 357.36 29-117-23-44-003910-045231-00 161.70 34-117-23-44-002310-100001-00 276.55 32-117-23-31-001510-110009-00 254.87 32-117-23-33-003710-110019-00 161.70 33-117-23-42-000110-170004-00 412.23 33-117-23-14-001010-220002-00 388.90 33-117-23-14-004310-220004-01 161.70 32-117-23-21-001410-225207-00 391.29 30-117-23-32-001610-245015-01 161.70 30-117-23-32-001910-245019-00 470.10 30-117-23-33-000310-250006-00 412.16 30-117-23-33-002610-255002-00 413.67 33-117-23-32-003110-260032-00 412.21 25-117-23-34-002510-270213-00 412.21 26-117-23-11-001210-280004-00 409.68 26-117-23-14-004010-290208-00 391.29 34-117-23-43-002310-300017-00 357.36 34-117-23-31-002810-325005-03 161.70 32-117-23-13-002110-330014-01 124.68 32-117-23-13-003810-330023-00 254.87 32-117-23-13-000810-330025-00 412.22 31-117-23-14-000210-365032-00 412.28 26-117-23-14-002410-385204-00 419.92 26-117-23-14-002510-385206-00 154.87 34-117-23-33-002910-425002-00 254.87 34-117-23-33-003710-425003-00 77.00 34-117-23-33-003910-425007-00 412.21 26-117-23-11-002010-435002-01 254.87 26-117-23-11-002110-435004-00 161.70 33-117-23-21-003810-470001-02 210.65 33-117-23-21-003810-470002-98 69.07 25-117-23-33-007110-485230-00 161.70 35-117-23-34-002910-545019-00 481.37 35-117-23-43-000610-545023-00 412.20 26-117-23-11-005010-550204-00 412.20 26-117-23-14-011010-550208-01 391.45 34-117-23-34-002410-607002-01 411.84 36-117-23-31-000710-675011-00 254.87 26-117-23-14-001110-685010-00 412.21 25-117-23-44-004910-705001-00 412.21 30-117-23-24-000410-715004-00 410.71 30-117-23-42-000310-725013-00 413.80 33-117-23-14-003610-745017-01 367.61 33-117-23-24-000610-775244-00 412.21 33-117-23-24-001110-775249-00 357.36 33-117-23-23-003910-775260-00 411.26 32-117-23-14-003110-775273-00 178.35 32-117-23-14-002410-775284-00 63.05 33-117-23-43-000510-863002-01 107.36 33-117-23-43-000610-863004-04 470.10 34-117-23-22-000510-872010-01 161.70 33-117-23-21-004110-905002-02 418.98 33-117-23-22-002010-905010-00 412.21 32-117-23-14-001710-930205-00 412.19 32-117-23-11-000210-930217-00 411.26 32-117-23-13-000410-930226-01 71.35 32-117-23-11-000510-930228-00 161.70 33-117-23-44-003210-940202-00 357.36 33-117-23-34-000610-975233-00 254.87 TOTALLEVY NO 18699$ 27,992.04 MUNIC CODE 26LEVY NO 18700 EXHIBIT CSTORMWATER MANAGEMENT PID NO.ACCOUNT NO.TOTAL PRINCIPAL 33-117-23-12-008102-180003-00 55.05 34-117-23-33-004602-423009-00 101.54 34-117-23-33-004402-423012-00 101.54 34-117-23-24-002602-945011-00 65.69 34-117-23-24-003302-945014-01 37.02 34-117-23-24-003102-945022-05 34.81 31-117-23-14-002603-080005-00 87.47 32-117-23-44-001503-085013-00 88.83 32-117-23-34-000903-160004-00 71.14 32-117-23-24-002403-507001-00 115.74 32-117-23-43-003703-600210-00 93.05 32-117-23-43-005403-600215-01 77.19 31-117-23-43-001003-775234-02 76.31 32-117-23-14-001503-930201-00 77.19 36-117-23-44-002704-130002-00 76.34 25-117-23-33-008004-270203-03 38.61 36-117-23-12-002504-560106-00 101.54 25-117-23-44-005604-705010-00 89.06 25-117-23-44-002604-710111-00 89.06 25-117-23-44-006304-886005-00 89.03 36-117-23-14-005204-889126-00 90.69 25-117-23-43-004404-897103-00 7.98 25-117-23-43-005804-897119-01 24.47 34-117-23-31-001905-005204-01 65.31 34-117-23-31-001505-325001-00 84.52 35-117-23-33-002208-800203-00 101.54 36-117-23-11-002409-254301-00 64.55 33-117-23-12-001410-015202-01 83.73 33-117-23-12-001310-015203-00 77.19 33-117-23-12-001710-015205-00 89.06 28-117-23-33-000710-045207-00 81.85 29-117-23-44-003710-045210-02 77.19 29-117-23-44-003910-045231-00 34.92 34-117-23-44-002310-100001-00 89.05 32-117-23-31-001510-110009-00 78.10 32-117-23-33-003710-110019-00 45.47 33-117-23-42-000110-170004-00 89.05 35-117-23-33-003910-197001-00 188.17 33-117-23-14-001010-220002-00 106.66 33-117-23-14-004310-220004-01 34.92 32-117-23-21-001410-225207-00 84.52 29-117-23-33-001610-225233-01 55.05 30-117-23-32-001610-245015-01 34.92 30-117-23-32-001910-245019-00 172.66 30-117-23-33-000310-250006-00 89.05 30-117-23-33-002610-255002-00 89.06 33-117-23-32-003110-260032-00 115.90 25-117-23-34-002510-270213-00 115.90 26-117-23-11-001210-280004-00 88.51 26-117-23-14-010710-285013-01 76.55 26-117-23-14-010510-285017-00 57.34 26-117-23-14-010810-285018-00 76.55 26-117-23-14-004010-290208-00 84.52 34-117-23-43-002310-300017-00 100.47 34-117-23-31-002810-325005-03 39.61 32-117-23-12-002710-330009-00 39.88 32-117-23-13-002110-330014-01 101.40 32-117-23-13-003810-330023-00 55.05 32-117-23-13-000810-330025-00 89.08 31-117-23-14-000210-365032-00 89.07 26-117-23-14-002410-385204-00 90.69 26-117-23-14-002510-385206-00 55.05 34-117-23-33-002910-425002-00 55.05 34-117-23-33-003710-425003-00 62.19 34-117-23-33-000910-425006-00 110.02 34-117-23-33-003910-425007-00 89.06 26-117-23-11-002010-435002-01 55.05 26-117-23-11-002110-435004-00 53.48 33-117-23-21-003810-470001-02 27.54 33-117-23-21-003810-470002-98 7.46 25-117-23-33-007110-485230-00 34.92 35-117-23-34-002910-545019-00 103.97 35-117-23-43-000610-545023-00 89.06 26-117-23-11-005010-550204-00 89.06 26-117-23-14-011010-550208-01 84.54 34-117-23-34-002410-607002-01 88.96 36-117-23-31-000710-675011-00 71.66 26-117-23-14-001110-685010-00 89.06 25-117-23-44-004910-705001-00 89.06 30-117-23-24-000410-715004-00 89.03 30-117-23-42-000310-725013-00 89.07 33-117-23-14-003610-745017-01 40.30 33-117-23-24-000610-775244-00 115.90 33-117-23-24-001110-775249-00 77.19 33-117-23-23-003910-775260-00 88.83 32-117-23-14-003110-775273-00 88.09 32-117-23-14-002410-775284-00 24.39 33-117-23-24-002810-790003-01 87.47 33-117-23-43-000510-863002-01 77.19 33-117-23-43-000610-863004-04 101.54 34-117-23-22-000510-872010-01 34.92 33-117-23-21-004110-905002-02 45.37 33-117-23-22-002010-905010-00 89.06 32-117-23-14-001710-930205-00 89.06 32-117-23-11-000210-930217-00 88.83 32-117-23-13-000410-930226-01 20.08 32-117-23-11-000510-930228-00 69.85 33-117-23-44-003210-940202-00 100.47 31-117-23-13-001610-955002-00 87.47 33-117-23-34-000610-975233-00 71.66 TOTALLEVY NO 18700$ 7,657.37 MUNIC CODE 26LEVY NO 18701 EXHIBIT DRECYCLING PID NO.ACCOUNT NO.TOTAL PRINCIPAL 33-117-23-12-008102-180003-00 50.97 34-117-23-24-002602-945011-00 131.18 34-117-23-24-003302-945014-01 68.33 34-117-23-24-003102-945022-05 64.46 31-117-23-14-002603-080005-00 80.79 32-117-23-44-001503-085013-00 82.00 32-117-23-34-000903-160004-00 94.02 32-117-23-24-002403-507001-00 82.10 32-117-23-43-003703-600210-00 91.71 32-117-23-43-005403-600215-01 71.47 31-117-23-43-001003-775234-02 54.88 32-117-23-14-001503-930201-00 71.47 36-117-23-44-002704-130002-00 72.53 25-117-23-33-008004-270203-03 71.47 36-117-23-12-002504-560106-00 94.02 25-117-23-44-005604-705010-00 82.14 25-117-23-44-002604-710111-00 82.13 25-117-23-44-006304-886005-00 82.13 36-117-23-14-005204-889126-00 83.70 25-117-23-43-004404-897103-00 10.54 25-117-23-43-005804-897119-01 32.34 34-117-23-31-001905-005204-01 86.31 34-117-23-31-001505-325001-00 78.15 35-117-23-33-002208-800203-00 94.02 33-117-23-12-001410-015202-01 77.46 33-117-23-12-001310-015203-00 71.47 33-117-23-12-001710-015205-00 82.13 28-117-23-33-000710-045207-00 75.77 29-117-23-44-003710-045210-02 71.47 29-117-23-44-003910-045231-00 32.34 34-117-23-44-002310-100001-00 82.15 32-117-23-31-001510-110009-00 73.51 32-117-23-33-003710-110019-00 32.34 33-117-23-42-000110-170004-00 82.14 33-117-23-14-001010-220002-00 98.66 33-117-23-14-004310-220004-01 32.34 32-117-23-21-001410-225207-00 78.15 30-117-23-32-001610-245015-01 32.34 30-117-23-32-001910-245019-00 117.67 30-117-23-33-000310-250006-00 82.14 30-117-23-33-002610-255002-00 82.14 33-117-23-32-003110-260032-00 82.14 25-117-23-34-002510-270213-00 82.14 26-117-23-11-001210-280004-00 81.99 26-117-23-14-004010-290208-00 78.15 34-117-23-43-002310-300017-00 71.47 34-117-23-31-002810-325005-03 52.83 32-117-23-13-002110-330014-01 106.39 32-117-23-13-003810-330023-00 65.48 32-117-23-13-000810-330025-00 82.14 31-117-23-14-000210-365032-00 82.14 26-117-23-14-002410-385204-00 83.70 26-117-23-14-002510-385206-00 50.97 34-117-23-33-002910-425002-00 64.94 34-117-23-33-003710-425003-00 82.00 34-117-23-33-003910-425007-00 82.13 26-117-23-11-002010-435002-01 50.97 26-117-23-11-002110-435004-00 54.88 33-117-23-21-003810-470001-02 50.97 33-117-23-21-003810-470002-98 13.79 25-117-23-33-007110-485230-00 32.34 35-117-23-34-002910-545019-00 96.26 35-117-23-43-000610-545023-00 82.13 26-117-23-11-005010-550204-00 82.15 26-117-23-14-011010-550208-01 78.23 34-117-23-34-002410-607002-01 82.11 36-117-23-31-000710-675011-00 50.97 26-117-23-14-001110-685010-00 82.14 25-117-23-44-004910-705001-00 82.14 30-117-23-24-000410-715004-00 82.13 30-117-23-42-000310-725013-00 82.14 33-117-23-14-003610-745017-01 81.55 33-117-23-24-000610-775244-00 82.14 33-117-23-24-001110-775249-00 71.47 33-117-23-23-003910-775260-00 82.00 32-117-23-14-003110-775273-00 81.63 32-117-23-14-002410-775284-00 34.07 33-117-23-43-000510-863002-01 71.47 33-117-23-43-000610-863004-04 94.02 34-117-23-22-000510-872010-01 32.34 33-117-23-21-004110-905002-02 83.70 33-117-23-22-002010-905010-00 82.14 32-117-23-14-001710-930205-00 82.13 32-117-23-11-000210-930217-00 82.00 32-117-23-13-000410-930226-01 14.28 32-117-23-11-000510-930228-00 46.16 33-117-23-44-003210-940202-00 71.47 33-117-23-34-000610-975233-00 50.97 TOTALLEVY NO 18701$ 6,312.58 10C MEETING TYPE City of Shorewood Council Meeting Item Regular Meeting Title / Subject: Special Assessment Policy Meeting Date: November 12, 2013 Prepared by: Bruce DeJong, Finance Director Reviewed by: Bill Joynes Policy Consideration: Should the City establish a policy for assessment of water connection charges? Background: State statute allows assessments to be certified the County Auditor for collection over a number of years on the property tax bill. We do not have a policy regarding assessments, but have been approached by the owners of 27010 Edgewood Road about assessing this water connection. The owners petitioned the city for the improvement and have waived their right to contest an assessment. Staff reviewed the process used in previous projects. In the Wedgewood/Mallard/Teal assessment, the costs were assessed over a 15 year period at an interest rate of 6.5%. In the St. Alban’s Road assessment, the project was assessed over a 5 year period at an interest rate of 7%. In reviewing other cities practice, most have a set time period, generally not exceeding 15 years for assessments to be repaid. The length sometimes varies on the dollar amount of the individual assessment. Ie: less than $5,000 - 5 years, less than $10,000 - 10 years and over $10,000 – 15 years. The interest rate is generally pegged to a benchmark like the corresponding Treasury bill rate plus an add-on of 1-2%. Currently, the rates for Treasury bills are 1.32% for the five-year and 2.57% for the ten- year according to Bankrate.com. This would calculate to assessment interest rates of between 2.32% to 4.57%. This seems advantageous to both the property owner and the city. Financial or Budget Considerations: If we assess this project, we will essentially be loaning the property owners the amount of the connection – approximately $15,000. With an added percentage on the interest rate, this would be a higher return than is generally available from other authorized investments. Options: The City Council may choose to: 1.Establish a policy that allows staff to proceed with these assessments based on policy 2.Have staff continue to bring each request up individually. 3.Decide not to offer assessment as an option for individual water connections. Recommendation / Action Requested: Staff recommends that a policy be set at 2% over the current T-Bill rate for a period of up to 10 years. Next Steps and Timelines: If approved, staff will proceed with the assessment. Connection to Vision / Mission: This process contributes to sound financial management through providing improved city services. Certification for Chanhassen This is a Shorewood property served by Chanhassen Water Department. 35- 117 -23 -33 -0039 $949.47 Date: November 12, 2013 To: Mayor Zerby Council Members From: Bruce DeJong, Finance Director Re: September, 2013 General Fund. Monthly Budget Report The 2013 General Fund continues to track about where we would expect. Revenues are a little ahead and expenditures are a little behind 2012, but not by any amount that would cause concern at this point in the year. The City Council may wish to consider amending the budget in Administration and City Engineer. These changes would reflect the decisions made at the end of last year and at the retreat to contract for services rather than hire employees in those positions. GENERAL FUND REVENUES • Licenses & Permits — We have experienced excellent revenues this year based on the minor subdivisions that have been approved in the past year. • Miscellaneous Revenues — This is the category where we budgeted the revenues from water tower cell phone leases. Most of those are paid early in the year, so we should be ahead of last year since this is the first year we have budgeted for all the cell tower leases in the General Fund. GENERAL FUND EXPENDITURES • Administration — This budget is over in support services primarily because of the shift to a contractual service with Midwest Government Advisors for Mr. Jaynes services. This leads to a corresponding decrease in Personnel which is under budget. • Snow and Ice — This budget exceeds the prior year because the snow season was significantly more active and longer than what we have recently experienced. • Recreation Programs -- This budget is higher than last year primarily because of salary expense. We actually had an ice skating season that required rink attendants while no rink attendants were hired in 2012 because of the warm weather and poor ice conditions. Ms. Grout is also coding more of her hours to this activity than was anticipated at budget time. Please contact me or Mr. Jaynes if you have any questions. Attachment: September Budget Spreadsheet Monthly Budget Report September 30, 2013 EXPENDITURES YTD YTD 2013 % of 2013 Expected Variance 9,615 2012 Sept Adopted Annual % of 2013 (Negative) Year to Date Overview Actual 2013 Budget Budget Budget or Positive REVENUE 374 2,000 18.7% Support and Services 50,237 57,215 Property Taxes 2,430,212 2,427,909 4,763,319 51.0% 50.3% Licenses and Permits 127,791 148,453 124,200 119.5% 95.7% Intergovernmental 73,481 70,726 70,401 100.5% 100.0% Charges for Service 52,074 25,303 35,150 72.0% 88.0% Fines and Forfeitures 45,968 38,055 57,000 66.8% 67.0% Miscellaneous 57,800 179,991 213,900 84.1% 52.0% TOTAL 2,787,326 2,890,437 5,263,970 54.9% 50.6% 124,877 EXPENDITURES 311,768 180,329 359,671 50.1% Department 14,282 9,615 18,450 52.1% Council 43,093 84,537 42,175 200.4% Personnel 12,595 12,595 16,800 75.0% Materials and Supplies 233 374 2,000 18.7% Support and Services 50,237 57,215 72,450 79.0% Transfers 47,700 Total 63,065 70,184 138,950 50.5% 69.7% 26,664 Administration Personnel 311,768 180,329 359,671 50.1% Materials and Supplies 14,282 9,615 18,450 52.1% Support and Services 43,093 84,537 42,175 200.4% Capital Outlay 370 - Total 369,513 274,481 420,296 65.3% 71.3% 25,190 Finance Personnel 128,168 100,873 132,929 75.9% Materials and Supplies 7,932 8,188 8,400 97.5% Support and Services 9,033 11,002 11,600 94.8% Capital Outlay - 322 - Total 145,133 120,385 152,929 78.7% 70.7% (12,264)' Professional Services 168,520 184,611 203,390 90.8% 86.0 %' (9,696); Planning and Zoning Personnel 141,891 131,032 170,666 76.8% Materials and Supplies - 292 650 44.9% Support and Services 3,205 4,190 7,400 56.6% Capital Outlay - - 200 0.0% Total 145,096 135,514 178,916 75.7% 69.0% (12,062)'; Municipal Building - City Hall Materials and Supplies 29,284 47,197 22,130 213.3% Support and Services 144,162 140,924 164,800 85.5% Capital Outlay 2,441 - - Transfers - - 100,450 0.0% Total 175,887 188,121 287,380 65.5% 2 7.3 %i (109,666); Police Materials and Supplies - - Support Services 742,521 763,437 1,015,077 75.2% Capital (Public Safety Bldg) 168,849 170,823 235,437 72.6% Total 911,370 934,260 1,250,514 74.7% 75.06/6 3,626 Fire Support Services 248,990 259,296 349,582 74.2% Capital (Public Safety Bldg) 208,429 215,741 287,643 75.0% Total 457,419 475,037 637,225 74.5% 75.0% 2,882 Inspections Personnel 93,476 89,760 120,588 74.4% Materials and Supplies - - 200 0.0% Support and Services 3,235 3,885 5,300 73.3% Total 96,711 93,645 126,088 74.3% 71.3 %: (3,744)'' City Engineer Personnel 64,126 460 92,549 0.5% Materials and Supplies 144 - 200 0.0% Support and Services 12,076 51,462 11,220 458.7% Capital Outlay - - - Transfers Total 76,346 51,922 103,969 49.9% 65.3% 15,970 Public Works Service Personnel 321,968 321,616 428,775 75.0% Materials and Supplies 98,908 115,840 171,300 67.6% Support and Services 92,950 75,062 139,750 53.7% Transfers - - 772,500 56.7% 46.3%, (16,522); Total 513,826 512,518 1,512,325 33.9% 48.2% 216,423 Snow and Ice Personnel 18,499 36,223 56,662 63.9% Materials and Supplies 10,247 21,369 45,000 47.5% Total 28,746 57,592 101,662 56.7% 46.3%, (16,522); Parks Maintenance Personnel 85,976 59,293 103,358 57.4% Materials and Supplies 15,725 14,459 19,300 74.9% Support and Services 23,643 26,688 30,910 86.3% Transfers - - - Total 125,344 100,440 153,568 65.4% 69.7% 6,597 Recreation Programs Personnel 30,734 41,532 36,360 114.2% Materials and Supplies 1,171 4,818 1,500 321.2% Support and Services 14,205 11,420 20,145 56.7% Transfers - - 42,000 0.0% Total 46,110 57,770 100,005 57.8% 69.7% 11,933 Unallocated - - 0.0% Total Expenditures 3,323,086 3,256,480 5,367,217 60.7% 58.8% (100,556) Net Revenue less Expenditures (535,760) (366,043) (103,247) Note: The balanced budget includes the use of $103,247 of fund balance in Transfers in the Revenue section. i►A 10405 M y_orrl�j► Date: November 12, 2013 To: Mayor Zerby Council Members From: Bruce DeJong, Finance Director Re: September, 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. In general, 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 over 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 held a significant amount of 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 in the short term. 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. We have reduced our cash position through the fall as we pay down contracts on significant projects in both street reconstruction and trails. Please contact me or Mr. Joynes if you have any questions. Attachment: September, 2013 Investment Summary N O m M rno o r o r o 000000 noo 000lDOmocoo Ln Lf) CO O Ln O Ln O O O Ct N O O O O M Ln t0 Ln I, O CD lO tifl Ln Ln CD N O O r 4 N O O Ln m CD Lf) O O Ln ri N O N W Lf) Ct t Ln N N N M Ln m m O M O M m N m O Co N m tD Ct tiD Ct t, N Ct O O n N N m M n c-i ri (11 ri Ct ri N O n Ct r, ri n Ct LD E-. 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