11-14-16 CC Reg Mtg Agenda
CITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD
CITY COUNCIL REGULAR MEETING COUNCIL CHAMBERS
MONDAY, NOVEMBER 14, 2016 7:00 P.M.
AGENDA
1. CONVENE CITY COUNCIL MEETING
A. Roll Call
Mayor Zerby___
Labadie___
Siakel___
Sundberg___
Woodruff___
B. Review Agenda
Attachments
2. APPROVAL OF MINUTES
A. City Council Work Session Minutes of October 24, 2016 Minutes
B. City Council Regular Meeting Minutes of October 24, 2016 Minutes
3. CONSENT AGENDA
– Motion to approve items on the Consent Agenda & Adopt
Resolutions Therein:
A. Approval of the Verified Claims List Claims List
B. 2017 Concession Operations Agreement Park & Rec Coordinator’s
memo
C. City Hall Holiday Schedule and Office Hours Administrator’s memo
D. Authorizing Advertisement for Planning Director position Administrator’s memo
E. Certification of Delinquent Charges Finance Director’s memo
Resolution
4. MATTERS FROM THE FLOOR
(No Council Action will be taken)
5. PUBLIC HEARING
6. REPORTS AND PRESENTATIONS
7. PARKS
A. Report by Stephany Vassar on the October 25 Park Commission meeting Minutes
B. Freeman Park Ice Skating Rink Planning Director’s memo
CITY COUNCIL REGULAR MEETING AGENDA – November 14, 2016
Page 2
8. PLANNING
A. Report by Bob Bean on the November 1 Planning Commission meeting
9. ENGINEERING/PUBLIC WORKS
A. Accept Quotes and Award Contract for Public Works Ravine Restoration Engineer’s memo
and Smithtown Road Sewer Extension Resolution
B. Accept Bids and Award Contract for Freeman Park Ice Skating Rink Engineer’s memo
Resolution
C. Accept Proposal for Professional Services for Geotechnical Exploration Engineer’s memo
and Evaluation for Freeman Park Skate Rink Light Poles
D. Approve Change Order No. 1 for 2016 Trunk Watermain Improvements Engineer’s memo
Resolution
10. GENERAL/NEW BUSINESS
A. Appeal of Administrative Hearing Officer’s Decision City Attorney’s memo
Appellant: Quentin and Rebecca Irey
Location: 26040 Wild Rose Lane
B. Assessing for Sewer Service Repairs Finance Director’s memo
Resolution
C. Council Consensus to Accept League of Minnesota Cities Policies Administrator’s memo
D. Excelsior Fire Department Ladder Truck Financing Agreement Finance Director’s memo
11. STAFF AND COUNCIL REPORTS
A. Administrator and Staff
1. Property Valuation and Tax Review Finance Director’s memo
B. Mayor and City Council
12. ADJOURN
#2A
CITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD
CITY COUNCIL WORK SESSION COUNCIL CHAMBERS
MONDAY, OCTOBER 24, 2016 6:30 P.M.
MINUTES
1. CONVENE CITY COUNCIL WORK SESSION
Mayor Zerby called the meeting to order at 6:30 P.M.
A. Roll Call
Present. Mayor Zerby; Councilmembers Labadie, Siakel, Sundberg, and Woodruff; Acting
Administrator/City Clerk Panchyshyn; Finance Director DeJong; Director of Public Works
Brown; and, Engineer Hornby
Absent: None
B. Review Agenda
Sundberg moved, Labadie seconded, approving the agenda as presented. Motion passed 5/0.
2. ENTERPRISE BUDGETS AND CAPITAL IMPROVEMENT PROGRAM FINAL
REVIEW
Director DeJong noted there has been almost no change to the 2017 Capital Improvement Program (CIP)
since it was last discussed in July. He stated there are differing opinions amongst the members of Council
about the priorities of some roadway improvement projects. There are challenges with how to proceed if
Council wants to coordinate a project with the City of Minnetrista.
He highlighted the minor changes to the street sealcoat schedule.
1. The sealcoat of Anthony Terrace has been moved from 2016 to 2017 because of a change order to
the 2016 project due to a supplier shortage of oil. The approximate cost for the project is $2,000.
2. The sealcoat of Covington Road has been moved from 2015 to 2017 because the Metropolitan
Council Environmental Services project is complete and the roadway has been patched. A seal coat
would extend the life of the repaired roadway. The approximate cost for the project is $14,000.
3. The sealcoat of Vine Street has been moved from 2016 to 2017 because of a change order to the
2016 project due to a supplier shortage of oil. The approximate cost for the project is $3,000.
4. The sealcoat of Smithtown Road has been moved from 2018 to 2017 because of the new patching
from County Road 19 to Eureka Road North that was needed because of the Smithtown Road east
sidewalk extension project. Sealcoating that roadway in 2017 would significantly extend the life of
the roadway. The approximate cost for the project is $72,000.
DeJong noted that the dollars that are carried forward from 2015 and 2016 into 2017 combined total about
$14,000.
CITY OF SHOREWOOD WORK SESSION MEETING MINUTES
October 24, 2016
Page 2 of 7
In response to a question from Councilmember Sundberg, Engineer Hornby explained there is a seam along
Smithtown Road created during the sidewalk construction so sealcoating the roadway will protect it.
Director DeJong explained the significant roadway projects that have been advanced in the street
maintenance schedule are located on Enchanted and Shady Islands. The reason they have been advanced is
to possibly reap the benefits of coordinating the improvements to Enchanted Lane with the City of
Minnetrista. He stated he thought most of the roadways on the Islands are in the flood plain. He also
thought two years ago when there was a tremendous amount of rain most of the roadways on the Islands
were under water. He explained if the height of Enchanted Lane was increased as part of a reconstruction
or a mill and overlay that would cause flood plain water storage issues for the Minnehaha Creek Watershed
District (MCWD). Staff believes it would be advantageous for Shorewood and Minnetrista to coordinate
the flood plain storage mitigation plan.
He noted staff has estimated the proposed improvements to the roadways on the Islands to cost about
$500,000. If the improvements were coordinated staff estimates the savings in design fees and equipment
mobilization costs to be about $50,000 (or about 10 percent).
He explained the challenge is Minnetrista has not gone through its public process for its improvements yet.
Engineer Hornby has indicated that the Minnetrista City Council will discuss the proposed improvements
during its November 14 meeting and that a public information meeting is scheduled for November 15. It
will not be known if there will be a project to coordinate until those meetings have occurred.
DeJong noted it is his understanding there are more Minnetrista residents opposed to the project than in
favor of it because of the property assessments that would be imposed on property owners.
Mayor Zerby asked if Minnetrista’s preliminary CIP includes funding for the project. Engineer Hornby
responded yes.
Engineer Hornby explained Minnetrista assesses for those types of roadway projects. The assessment rate
has not been determined yet. During that November 14 Minnetrista Council meeting the preliminary layout
and some of the costs will be presented. That same information will be presented to the residents on
November 15. Minnetrista has expanded its project to include Tuxedo Road. He clarified Minnetrista is in
the feasibility phase at this time.
Director DeJong stated staff is seeking direction from Council on how to move forward with the roadways
on the Islands in the CIP. Should the improvements be put back to 2023/2024 as originally planned? Or,
should they be advanced to 2017 unless Minnetrista does not choose to move forward with its project?
Mayor Zerby asked if there are two parts to the project for Shorewood. Was there one area where flooding
caused damage to Enchanted Lane yet other areas where there was minimal damage from flooding? He
asked if the roadway closest to the bridge should be done as a coordinated effort with Minnetrista without
requiring improvements to the other roadways on the Islands at the same time. Director Brown stated
Enchanted Lane tends to flood more than the other roadways and noted that Enchanted Lane serves as the
main access to the area.
Zerby then asked if the improvements are an all or nothing proposition. Director Brown stated the City
could work with Minnetrista on Enchanted Lane improvements near the bridge only to lessen the financial
impact. Zerby stated if Minnetrista is going to raise Enchanted Lane and Shorewood does nothing he asked
if there will be a drop in the roadway at the Shorewood border. Brown stated there would be a transition
and noted the roadway would be designed for a 25 – 30 miles per hour (mph) speed.
CITY OF SHOREWOOD WORK SESSION MEETING MINUTES
October 24, 2016
Page 3 of 7
Director Brown stated if Enchanted Lane is raised in Shorewood there is flood plain water storage
mitigation that has to be done. For example, if a cubic yard of flood storage is taken away then it has to be
put back somewhere. That would be more challenging to do if Shorewood did that by itself as opposed to
doing it in conjunction with Minnetrista; it could be done but it would cost Shorewood to do it alone.
Councilmember Labadie stated that she thought it would make sense to work in conjunction with
Minnetrista on Enchanted Lane if Minnetrista moves forward with that. But, she is not sure she supports
doing the other Island roadways in 2017. If Minnetrista does not moved forward with Enchanted Lane
improvements she does not support Shorewood moving forward with its improvements to Enchanted Lane
in 2017.
Councilmember Siakel stated the City has a 20-Year Pavement Improvement Plan (PMP) and she
recommended the Council try to adhere to the PMP as much as possible. Over the last few years it seems
like projects are being advanced in the schedule without projects being pushed out. If that continues the
City is going to get in a financial position where it is going to have to tax property owners a lot more.
She clarified that she was not objecting to paying for improvements to the roadways on the Islands; her
concern is about how that would be done. She explained that the City has reserves in excess of those
stipulated in the City’s General Fund Balance Policy. Council has discussed many uses for those excess
reserves. She noted that she does not support taking all of the excess reserves to make improvements to the
roadways on the Islands ahead of schedule. She stated Council has discussed using excess reserves to
address issues related to the Southshore Center. There are additional things that could be done to Badger
Park with the use of those excess reserves.
She clarified that she was not opposed to using some of the excess reserves for the roadways on the Islands;
in particular, the area of Enchanted Lane near the City border near Tuxedo Road. She noted she was not in
favor of using all of the excess reserves to pay for those roadways. She wants to adhere to the PMP.
She stated that because Minnetrista assesses for projects like roadways improvements she heard earlier in
this discussion that many of its residents are not in favor of doing that project.
She then stated that she drove those roadways earlier in the day. There were some areas where the
roadways are a little choppy. Those conditions start back in the City of Mound.
She went on to state she wants to get a better understanding of the cost of the improvements and the
savings that could be realized by doing the Enchanted Lane portion in conjunction with Minnetrista. She
also wants to know what impact advancing improvements to the roadways on the Islands has on other
roadway projects.
Siakel reiterated the City has a plan and she wants the City to work its plan.
Councilmember Woodruff clarified that no part of Tuxedo Road is located in Shorewood; it ends before the
bridge to Enchanted Island. He explained that currently the roadways on the Islands are generally at a level
that would qualify them to be milled and overlaid at a minimum. He then explained the PMP was created
about eight years ago and it has been updated to reflect current road conditions. When the PMP schedule
was developed it was based on Engineering and Public Works estimates of when the roadway surfaces
would deteriorate to the point where they warranted some maintenance action. For the most part, the
roadways on Enchanted and Shady Islands have deteriorated faster than anticipated.
CITY OF SHOREWOOD WORK SESSION MEETING MINUTES
October 24, 2016
Page 4 of 7
He noted that he would not be advocating moving those roadways up in the PMP if the City was not going
to potentially be able to save a fair amount of money but doing the project at the same time Minnetrista
does its project. If the project is expanded to include other roadways it would spare the residents from
having to experience construction inconveniences twice, noting Shorewood residents on are the majority of
the residents living on the two Islands.
He expressed his support for continuing to work with Minnetrista. He stated if it makes financial sense for
the City to do its project in conjunction with Minnetrista he suggested the City do that. The City has or can
find the money to do that. From his perspective that would not steal the money from improvements to
another roadway; it would not push another roadway out in the schedule. He stated that using excess
reserves for roadways would be a good use of the reserves because the road plan needs the money if the
roadways on the Islands are advanced in the schedule.
Woodruff noted that from his perspective he thought doing the project in conjunction with Minnetrista
makes good financial and business sense to determine what Minnetrista is doing.
Councilmember Sundberg stated before Council makes any decision she recommended it wait until it knows
for sure what Minnetrista is going to do. If Minnetrista moves forward with its project it would make sense
for Shorewood to take advantage of the savings it could realize by doing its project at the same time. She
noted she understood Councilmember Siakel’s concerns about using all of the excess reserves to do that
work.
Councilmember Siakel asked if staff was talking about a total reconstruction or a mill and overlay. She
stated she would be in favor of improving a portion of Enchanted Lane but she thought doing everything
would be premature. She then stated that a portion of the roadways are in need of repair; that is not
different than many other roadways in the City. She went on to state Council needs to have a better
understanding of the costs and savings and if Minnetrista is seriously considering moving forward with its
project.
Councilmember Woodruff clarified that he was not talking about reconstructing roadways on the Islands. It
is his understanding that the soils there would never tolerate the work. The discussion has always been
about a reclamation or a mill and overlay project.
Director Brown noted that each year in October he rates each roadway. He stated there have been many
versions of the PMP. They have included sealcoating, mill and overlay, reclamation and reconstruction.
Staff believes the only thing feasible for those roadways is a mill and overlay or reclamation because of
access issues and the narrowness of the roadways.
Mayor Zerby stated he viewed the PMP as an estimate. It is difficult to project out 20 years and be
accurate. He then stated that for now he can support leaving the roadways on the Islands in the 2017 Street
Reconstruction CIP to give the City an option. He clarified that is not an approval to spend the money. He
went on to state that next year Council needs to have a serious discussion about assessing for roadway
improvements. Staff has informed Council numerous times that the City does not have the money to fund
the PMP.
Councilmember Siakel stated Council cannot continue to entertain doing $1 million projects before they are
scheduled to be done. She then stated she thought there is a balance between affording projects and
priorities.
CITY OF SHOREWOOD WORK SESSION MEETING MINUTES
October 24, 2016
Page 5 of 7
Councilmember Labadie stated that not knowing how much the City would save by the City doing its
project in conjunction with Minnetrista is a critical missing element. That needs to be factored into
Council’s decision. She then stated this Council wants to know hard financial numbers before it makes a
decision.
Mayor Zerby stated he thought the MCWD needs to get involved with this project; at least from a
permitting perspective. He hoped that maybe it could be involved financially as well because it does impact
lake water quality and that flows downstream.
Director Brown stated staff has heard Council express competing priorities for the use of excess reserves.
Some of them are improvements to the roadways on the Islands, addressing issues with the Southshore
Center, and improvements to Badger Park. Understanding that Minnetrista has a process to follow before it
decides if it is going to move forward with its project, he asked what Council would like the 2017 CIP to
reflect.
Councilmember Woodruff stated he would like it to reflect that the City is going to fund a potential
reclamation or mill and overlay project on the Islands until it is proven that would not make sense from a
financial and logical standpoint. He reiterated the current road conditions are rated at a level that indicates
some improvements should be made to them. The schedule to make those improvements in 2023/2024
reflects what people thought a few years ago. He stated when more is known about what Minnetrista is
going to do Council can decide whether or not to change the CIP.
Councilmember Siakel stated doing that project in 2017 would require use of all the excess reserves thereby
eliminating funding for other things Council has discussed. Councilmember Woodruff stated from his
vantage point that may or may not be the case because the source of the funds could be a number of things.
Councilmember Woodruff stated if staff is directed not to pursue this, and if Minnetrista moves forward
with its project in 2017, the City will not have the opportunity to realize the savings of doing the project in
conjunction with Minnetrista. He wants the 2017 CIP to reflect that the roadways on the Islands will be
improved.
Councilmember Siakel stated Council has never received any information about improving the section of
Enchanted Lane just over the bridge that was flooded and damaged.
Councilmember Woodruff noted Councilmember Siakel’s comment is right. But, what she is asking for
would be done as part of a feasibility study. Council has not been asked to approve a feasibility study yet.
He clarified that he was not suggesting Council do that until it knows what Minnetrista is going to do. He
stated he does not want the City to spend an approximate $10,000 to do a feasibility report until Council is
relatively sure that it would want to move forward with the project. He thought that leaving Shorewood’s
project in its CIP would be appropriate while Minnetrista progresses through its process.
Director DeJong asked if it would be possible for Council to extend this work session to allow for an
nd
opportunity to discuss the Strawberry Lane /West 62 Street project.
There was Council consensus to do that.
nd
Director DeJong explained the City is attempting to coordinate the Strawberry Lane/West 62 Street
project with the Minnetonka School District if the District is willing to participate in an abatement process
associated with the Minnetonka Country Club (MCC) redevelopment project to partially fund the project.
There would be significant benefits to the District if the project moves forward because it would include
CITY OF SHOREWOOD WORK SESSION MEETING MINUTES
October 24, 2016
Page 6 of 7
constructing a sidewalk/trail that would extend down a fairly busy route to Minnewashta Elementary
School. It would provide students with a safe way to walk to school. They currently have to walk in the
driving lanes of those roadways.
The project would be quite extensive and expensive. The sidewalk/trail portion of the project alone would
be quite expensive. It would be less expensive if it was done in conjunction with the roadway reconstruction
project which would also include stormwater management improvements. It does not make sense to
construct the sidewalk as a standalone project and then do a street project two years later.
Originally Strawberry Lane was scheduled for reconstruction in the 2019 in the CIP. During the budgeting
process last year it was moved forward to 2017. The financing source for the street and trail project is not
known at this time.
DeJong noted that he thought it would be appropriate to move that project out to 2018 or even back to
2019 (its original schedule).
Councilmember Siakel asked if doing that would free up money to spend on the roadways on the Islands.
Director DeJong responded potentially.
Councilmember Labadie stated if the City does that she asked if there a potential risk of losing the support
of the School District and the potential financial support from the District via abatement. She then asked
when staff last met with either a School Board representative or Superintendent Dennis Peterson. She noted
that she, Mayor Zerby and Administrator Joynes met with Superintendent Peterson a long time ago. She
asked what has transpired since that meeting. Director DeJong stated he is not sure but he does not think
there has been any significant discussion since then.
Labadie again asked if there is a risk to the City of losing the District’s support via the abatement process.
Director DeJong explained that in financing with tax abatement there has to be a significant added value in
the property being abated. At this time that is not the case with the MCC site; it is basically raw land value.
There is nothing to abate until there are buildings constructed on that site and that value goes on to the
property tax rolls. There is almost a two-year lag time between when something gets constructed and when
nd
it ends up on the tax rolls. Delaying the Strawberry Lane/West 62 Street project until 2018 would not
negatively impact the City’s financing opportunities. He thought it would be more appropriate to have
houses constructed on the site showing that there is some value to abate.
nd
Mayor Zerby stated he would support pushing the Strawberry Lane/West 62 Street project out to 2018.
That time is needed to work with the School District and to have the project mature a little more.
Councilmember Siakel concurred.
Councilmember Sundberg stated she would like staff to find out how many students are walking on
Strawberry Lane to get to the School. Councilmember Labadie stated it would not be possible to get a
reasonably accurate number because many parents who live along or access Strawberry Lane to get to
School do not let their children walk on Strawberry Lane to school. Sundberg clarified she would like to
know those who have the potential to do that.
nd
Sundberg asked how much deterioration was caused to West 62 Street because of the construction of the
new development in the City of Chanhassen. Director Brown stated that roadway was in bad shape before
the construction. She asked if there was any avenue to get financial participation from Chanhassen. Brown
stated that because the road is in both Cities it would be appropriate to ask the question. Mayor Zerby
CITY OF SHOREWOOD WORK SESSION MEETING MINUTES
October 24, 2016
Page 7 of 7
stated he thought the question should be asked and explained that in the City’s development agreements that
if a contractor damages a roadway they are responsible for restoring it to the condition it was in prior to a
construction project. Zerby commented that a park and a roadway are two different subjects.
Councilmember Woodruff concurred with Zerby’s perspective. Woodruff stated the City has had good
success working with the City of Minnetonka on the Vine Hill Road where one half is located in Shorewood
nd
and the other half in Minnetonka. He then stated Chanhassen should stand up for the half of West 62
Street it owns. It needs to be clearly conveyed to Chanhassen representatives that Chanhassen has a
responsibility for that road as well.
Director DeJong stated based on this discussion staff will leave roadways on the Islands in the 2017 CIP
noting nothing will be done until Minnetrista has decided what it is going to do and until Council has
nd
further discussion about this. Staff will also move the Strawberry Lane/West 62 Street project out to
2018 and attempt to coordinate the effort with the Minnetonka School District and Chanhassen.
Councilmember Siakel stated she wants to have staff provide Council with the financial impact of doing
those two things. She asked that Council be provided with the information about the various 2017 budgets
well in advance of the next Council meeting.
Councilmember Woodruff stated he expects staff to provide Council with a revised CIP and a complete
budget packet.
Director DeJong stated he will have that for Council’s November 28 work session. He reviewed the time
line for the Truth in Taxation meeting and timetable for final approval of the General Fund Budget, CIP
and Enterprise Budgets.
3. ADJOURN
Sundberg moved, Woodruff seconded, Adjourning the City Council Work Session of October 24,
2016, at 7:10 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 24, 2016 7:00 P.M.
MINUTES
1. CONVENE CITY COUNCIL REGULAR MEETING
Mayor Zerby called the meeting to order at 7:15 P.M.
A. Roll Call
Present. Mayor Zerby; Councilmembers Labadie, Siakel, Sundberg, and Woodruff; Attorney
Keane; Acting City Administrator/City Clerk Panchyshyn; Finance Director DeJong;
Planning Director Nielsen; Director of Public Works Brown; and, City Engineer Hornby
Absent: None.
B. Review Agenda
Mayor Zerby asked that a report by Planning Commissioner Maddy on the October 4, 2016, and the
October 18, 2016, Planning Commission meetings be added before Item 8.A on the agenda.
Councilmember Woodruff stated a couple of residents had asked him if Item 9.B could be discussed
earlier on the agenda. There was consensus to do that.
Director Nielsen stated the applicant asked that Item 8.B be postponed.
Sundberg moved, Woodruff seconded, approving the agenda as amended. Motion passed 5/0.
2. APPROVAL OF MINUTES
A. City Council Work Session Minutes of October 10, 2016
Labadie moved, Siakel seconded, Approving the City Council Work Session Minutes of October 10,
2016, as presented. Motion passed 5/0.
B. City Council Regular Meeting Minutes of October 10, 2016
Sundberg moved, Woodruff seconded, Approving the City Council Regular Meeting Minutes of
October 10, 2016, as presented. Motion passed 5/0.
3. CONSENT AGENDA
Mayor Zerby reviewed the items on the Consent Agenda.
Sundberg moved, Woodruff seconded, Approving the Motions Contained on the Consent Agenda
and Adopting the Resolution Therin.
A. Approval of the Verified Claims List
CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES
October 24, 2016
Page 2 of 16
B. 2017 Community Tree Sale
C. Accept Donations for the January 13 – 15, 2017, Arctic Fever Event
D. Professional Services Agreement with AET – Construction Materials Testing for
2016 Trunk Watermain Improvement (Oppidan)
E. Adopting RESOLUTION NO 16-084, “A Resolution Approving Work Order 3 for
the Smithtown Road East Sidewalk Extension Project, City Project 14-10.”
Councilmember Sundberg noted that one of the donations for the Arctic Fever event is from WSB &
Associates. She asked if the City generally accepts donations from its contractors. Acting
Administrator/Clerk Panchyshyn stated the City has in the past. Councilmember Siakel stated she does
not think that is a problem. Sundberg suggested Council discuss the appropriateness of doing that at a
later date.
Councilmember Labadie noted who the other donors for Item 3.C are: Shorewood Professional Building;
Lucky’s Station LLC; American Legion Post 259; and, Clarence Clofer Auxiliary Unit 259. She thanked
all five donors for their donations.
Motion passed 5/0.
4. MATTERS FROM THE FLOOR
Chris Gehrke, 24650 Smithtown Road, noted his property is located directly across from the Minnetonka
Country Club (MCC) development near the north entrance to the site. He stated when he left his home to
come to this meeting he could hear large trucks with their backup alerts going off. The impact on his
family of the construction vehicles going to and from the site as well as working on the site has been
significant.
He explained that his wife had reached out to a project manager with Mattamy Homes (the developer)
asking that the construction vehicles use more than just that one entrance on to the site. The project
manager indicated that the City asked them to use only that entrance. He noted there are road restrictions
for the smaller roadways around the site. He asked the City to open up some of the other entrances in
order to allow the vehicles going to and away from the site to be spread out. He stated he understood that
would only delay the inevitable as the development is built out.
He noted he has spoken with two of his neighbors, Paul Hirsch (24590 Smithtown Road) and David
Cooley (24725 Smithtown Road), and both have submitted written concerns they also have about the
construction traffic to him.
Mr. Gehrke again asked if there would be a way for vehicles to use more than just the north side entrance
to get to and from the MCC site. He thanked Council for its time.
Engineer Hornby explained that through the public process for the MCC development project when the
plans for the project were being approved the City had identified, as did residents, that Smithtown Road
and the entrance on the northeast corner of the site is what was to be used. Smithtown Road is the
roadway that can handle the traffic the best. It is built for it with regard to its depth of section and its
width. Yellowstone Trail is not and that is the only other access point at this time.
CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES
October 24, 2016
Page 3 of 16
Councilmember Labadie asked what the hourly restriction is on truck traffic. Engineer Hornby stated it is
the same as the construction work hours which are 7:00 A.M. – 7:00 P.M Monday through Friday.
Councilmember Sundberg asked if the noise generated from trucks backing up is the real issue. Mr.
Gehrke stated a lot of the trucks do not have the right brakes; the brakes on them create a loud screeching
noise. He noted if he said there was one mega truck every five minutes he would be grossly understating
things.
Mr. Gehrke asked if the other entrances could be opened up for the smaller regular pickup trucks. The
vehicle traffic for those size trucks is going to increase significantly when the construction of houses
starts.
Mr. Gehrke submitted the written comments from his two neighbors for the record.
5. PUBLIC HEARING
6. REPORTS AND PRESENTATIONS
A. Hennepin County Commissioner Jan Callison – Update on County Board Activities
Mayor Zerby welcomed Hennepin County Board of Commissioners Chair Jan Callison who was present
to update Council on Hennepin County Board activities.
Commissioner Callison explained the Ridgedale Library is going to close for extensive remodeling in the
spring of 2017. It has been almost 20 years since the last remodeling was done. There is a need for some
updating, reconfiguration of spaces, some modernization, and the replacement of mechanical systems.
Staff estimates it will take eight to ten months to do the work but by saying it will take one year no one
will be disappointed if it reopens early. The courts and the social service center will stay open during that
time period.
For this 2016 election Hennepin County is providing electronic poll (e-poll) books for use throughout the
County except for the City of Minneapolis. It is the second County in the State to have them. The system
should be more efficient. It also should be more secure in a variety of ways. This is the first year
Minnesota has had no-excuse absentee voting. As of today, October 24, there have been 99,000 absentee
ballots issued in Hennepin County and 56,000 of them have been received and accepted.
The overlay of County Road 19 has been completed. The at-grade crossing at the Lake Minnetonka LRT
Regional Trail at County State Aid Highway (CSAH) 19 is complete. She asked Council to provide her
with their feedback or their constituents’ feedback about the crossing.
There may be some potential changes to organics recycling in Hennepin County. The Hennepin County
Board is discussing the possibility of changing the County’s ordinance so that all haulers would be
required to offer the option of organics pickup. The County’s SCORE funding would possibly change.
SCORE is the Governor's Select Committee on Recycling and the Environment. Currently most of the
cities in the County receive SCORE funding; those are state dollars that the County redistributes. Those
dollars are currently tied to recycling. The SCORE funding would be changed to encourage organics
recycling. Those cities that have more residents doing organics collection would receive more SCORE
funding and those that have less would receive less SCORE funding. County staff will bring that
recommendation to the Board for discussion later this year. She thought County staff has been speaking
with city staff.
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Mayor Zerby asked if the organics recycling is residential and not commercial. Commissioner Callison
stated she thought it was residential and noted she would confirm that. Zerby stated he thought
commercial would be beneficial especially in a city like Excelsior where there are a number of
restaurants. Callison stated commercial is a large percentage of the waste production in Hennepin County
and noted commercial can be more complicated.
Commissioner Callison explained Hennepin County’s highest property tax base up until this year was in
2008. The County has reached that number again for 2017; the property tax base has recovered. But, the
property tax base is different in a couple of ways. One way it is different is the percent of the base that is
related to apartments has grown. Apartments are a bigger share of the base and that means the single-
family residential portion of the base is smaller. Another difference is that equalization (i.e.; getting back
to the 2008 level); if developments, remodels and additions to houses were removed the base would not
be at the 2008 level. Growth is what brought the base to the 2008 level. For most of the cities in the
County they are still below what the assessed property tax value was in 2008.
She highlighted the Hennepin County proposed budget for 2017.
It is anticipated that spending will decrease slightly in the County by about $80 million out of a $1.9
billion budget (about 2.57 percent). It is also expected that taxes will increase and that means that the area
where spending is anticipated to be less is not supported by County property taxes. The 2017 proposed
increase in the property tax collection is 4.49 percent.
For 2017 the County is going to incur the cost of body cameras as jurisdictions add body cameras. The
Hennepin County Sherriff’s Office is going to add body cameras. The Hennepin County Attorney will be
affected because those cases have to be prosecuted by him. That camera data has to be stored, reviewed
and transcribed.
The number of child protection cases continues to drastically increase. In 2008 the County had about
11,000 cases reported and it is anticipated there will be 22,000 in 2016. That requires additional staff to
answer phones, conduct investigations, and go to court. Lawyers are needed to prosecute cases. Foster
families are needed as are services families.
The MNSure computer system impacts the County. The County workers have to now use that system to
get people on to public insurance. That system is not robust; it is not as good as the system the County use
to use. Even though the system needs to be refined a lot more the State is requiring the County to move
more people on to that system which is much slower. The County needs more staff in order to provide the
same level of service that it provided before.
She explained that for a median valued home in Hennepin County which is $256,000 the County’s
property tax would increase $10 per year. For a median valued home in Shorewood which is $409,000 the
County’s property tax will decrease $57 per year (or 2.9 percent).
Commissioner Callison thanked Councilmember Sundberg for her participation on the Hennepin County
Comprehensive Plan Advisory Committee.
Councilmember Siakel asked if there has been any advancement in making organics recycling easier. She
stated the Shorewood community is aging. Households have a trash cart, one or two recycling carts and
maybe a yard waste cart. Adding another container for organics was maybe too much. Commissioner
Callison stated she has done organics recycling for commercial pickup at her home for about 10 years.
She explained she has a kitchen size bin in her garage. She takes the bag out of it and puts it in her regular
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October 24, 2016
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trash can when it is to be picked up. When she first started organics recycling she downsized her regular
trash cart to the smallest possible and she changed that pickup to every other week.
Councilmember Siakel stated she thought the new at-grade crossing at the County Road 19 and LRT trail
intersection has been an improvement. She noted that she does not want the need for an above-grade
crossing to be forgotten. She stated there is still confusion about who should stop at the at-grade crossing.
She then stated she thought it would be worthwhile for representatives from the Cities of Shorewood and
Tonka Bay and the Three Rivers Park District (TRPD) to push the above-grade crossing forward. She
noted it would be helpful to have Hennepin County’s support to make that happen. Commissioner
Callison stated that was a TRPD project.
Councilmember Labadie asked if there is a Hennepin County drop location site for used children’s car
seats. She noted that shelters and donation sites cannot accept them. Commissioner Callison stated car
seats go out of compliance because safety regulations change.
Councilmember Woodruff stated he thought there are a number of opportunities to change some signal
lights in the area (not just Shorewood) to left turn allowed on a flashing yellow arrow. He asked Hennepin
County to investigate those that are not that way on county roadways. Commissioner Callison stated the
County has started to do that. Woodruff stated having that type of light helps traffic flow better. Woodruff
then stated he is aware of one traffic light that does not allow that where a driver can wait for 5 – 8
minutes to turn on green yet there is no traffic coming the other way. Commissioner Callison stated she
would pass that information along.
Mayor Zerby stated that according to the Hennepin County website if a car seat is less than five years old,
is in good condition and has not been involved in a vehicle crash it can be given away or donated. If it
does not meet that condition the County recommends putting them in the garbage. Councilmember
Labadie asked if local garbage haulers will take them. Commissioner Callison stated if they fit in a
garbage can the haulers take it away.
Councilmember Sundberg asked that the City and possibly Hennepin County make a bigger effort to
educate people about how to follow the rules of the at-grade crossing of the LRT trail. Commissioner
Callison asked if more signage would help. Sundberg noted she thought it would. Commissioner Callison
stated she would have Country staff contact staff at Shorewood.
Sundberg thanked Commissioner Callison for serving the area and for taking on the Chair responsibility
for the Board of Commissioners. She stated that she has found her involvement with the Hennepin
County Comprehensive Plan Advisory Committee to be very interesting. She thought the County
personnel who are working on the plan are doing a good job. The volunteer time spent on that initiative is
impressive. She then stated from her perspective the planning the County goes through is not a rubber
stamp effort.
Councilmember Siakel asked what Hennepin County’s tax increase was for 2016; she thought it was
about 4.5 percent. Commissioner Callison noted it was close to that.
7. PARKS
8. PLANNING
Report by Planning Commissioner Maddy on the October 4, 2016, and the October 18, 2016,
Planning Commission meetings.
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Planning Commissioner Maddy reported on matters considered and actions taken at the October 4, 2016,
and the October 18, 2016, Planning Commission meeting (as detailed in the minutes of those meetings).
A. Conditional Use Permit and Variances
Applicant: Marc and Kerri Hexum
Location: 5205 Howards Point Road
Director Nielsen explained Marc and Kerri Hexum own the property located at 5205 Howards Point
Road. The Hexums propose to demolish the existing house and garage on the property and build a new
home with an attached garage. Their property is quite substandard with respect to its R-1A/S, Single-
Family Residential/Shoreland zoning district. Instead of 40,000 square feet in area, the lot is only 13,534
square feet. The buildings on the property do not comply with any of the R-1A/S setback requirements
and the amount of impervious surface on the site is 51.2 percent, whereas the limit is 25 percent.
Their proposal requires a conditional use permit (C.U.P.) for construction on a substandard lot and four
variances: 1) lot area; 2) lot width; 3) front yard setback; and, 4) maximum impervious surface in excess
of 25 percent.
He highlighted a comparison of the zoning requirements, the existing site and the applicants’ proposed
plans.
R-1A/S Requirement Existing Proposed
Front Yard Setback 50 feet 28 feet 35 feet
Side Yard Setback Total 30 feet, no less than 10 feet 11 / 11 feet 12.5 / 20 feet
Rear Yard Setback 44.2 feet* 34 feet 44.2 feet*
Percent Impervious 25% maximum 51.2% 28.2%
Floor Area Ratio 30% maximum unknown less than 30%
* The rear yard setback takes advantage of the average lakeshore setback provision for the
properties abutting each side of the subject property.
He noted that what is being proposed would be a drastic improvement to the existing condition. He stated
he does not think the City has seen such a drastic improvement in all of the items and especially the
hardcover requirement.
Nielsen then noted the Planning Commission held a public hearing on this request and voted unanimously
to recommend approval of the C.U.P. and variances. The meeting packet contains a copy of a resolution
for that.
Councilmember Woodruff stated the Minnehaha Creek Watershed District (MCWD) implemented a strict
restriction a few years ago regarding setbacks. He asked if the MCWD needs to review the proposal.
Director Nielsen clarified this is consistent with what the MCWD does and that is based on a Minnesota
Department of Natural Resources requirement.
Mayor Zerby noted the applicants were present.
Councilmember Siakel noted that what the applicants are proposing would result in a lot of
improvements.
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October 24, 2016
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Councilmember Labadie asked if the two existing garages are going to remain on the site. Director
Nielsen clarified that everything currently on the lot will be demolished.
Siakel moved, Sundberg seconded, Adopting RESOLUTION NO. 16-081, “A Resolution Granting a
Conditional Use Permit and Lot Area, Setback and Hardcover Variances and a Variance to Build
on a Substandard Lot to Mark and Kerri Hexum, 5205 Howards Point Road.” Motion passed 5/0.
B. Rezone Property from R-2A, Single and Two-Family Residential to C-1, General
Commercial
Applicant: John Benjamin
Location: 24250 Smithtown Road
This item was postponed at the applicant’s request.
Discussion moved to Item 9.B on the agenda.
C. Amendment to Chapter 1101 - Flood Plain Management Regulations
Director Nielsen explained that periodically municipalities must update their floodplain regulations. The
most recent updates are primarily changes to the floodplain maps. There are also some minor text changes
between the current model ordinance and the City’s Ordinance. The Planning Commission reviewed the
changes and recommended adopting the amendment. The City sent out a notice to residents based on
direction from FEMA (Federal Emergency Management Agency) letting property owners know that
certain properties may be subject to floodplain regulations that were not before and other property owners
whose properties were removed from floodplain maps. He noted he thought the FEMA flood plain maps
are just about worthless. It is very difficult to determine from the maps if a property is in our out of the
flood plain. Staff intends on sending out a memorandum to the same mailing list telling them how to
access the City’s floodplain map information.
He displayed a copy of the map titled City of Shorewood 100-Year Floodplain Boundary Changes Since
2004 Flood Insurance Study and highlighted areas where the classifications changed. (A copy of the map
was included in the meeting packet.) Enchanted Island and Shady Island have been removed from the
flood maps; or at least reduced in the floodplain. The map indicates the entire border of Lake Minnetonka
on the west side of Shorewood has an increase in floodplain area except for the east side of Howards
Point.
He noted staff intends on sending out a memorandum this week to the same mailing list telling them how
to access the City’s floodplain map information.
He demonstrated the process that would be described in the follow-up memo. Following the process
property owners can view a contour map of their property to find out if their home is outside of the
floodplain elevation. If they cannot read a contour map they can come to City Hall and staff will help
them. If their property should not be on the floodplain map in most cases the property owner can take the
City’s map and show their mortgage company that their house is outside of the floodplain elevation and
they should not have to carry National Flood Insurance. If their mortgage company wants a letter from the
City the City will provide that.
Nielsen noted the flood elevation for Lake Minnetonka is 931 feet and a house has to be one foot above
that. He also noted that the ordinance included in the meeting packet makes references to sections but the
section numbers are for the model ordinance. They need to be changed to the City’s format.
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October 24, 2016
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Councilmember Woodruff stated he thought it would be appropriate for staff to help residents work
through the process if need be. He then stated the ordinance and the letter refer to November maps. Yet,
the maps referred to are from 2004. He asked where the new maps are. Engineer Hornby clarified the new
maps will be on FEMA’s site after the new regulations are adopted by the State on November 4, 2016.
Woodruff asked that staff confirm that FEMA puts the new maps on its site.
Woodruff then stated both Islands are designated as low risk for flood zone. He does not think there is any
house out there that is in the floodplain.
Woodruff went on to state residents can buy flood insurance even if their house in not located in a
floodplain. But, it can be quite expensive.
Woodruff moved, Sundberg seconded, Approving ORDINANCE NO. 534, “An Ordinance
Amending the Shorewood City Code to Replace Existing Chapter 1001 in its Entirety with a
Revised Chapter 1001 (Flood Plain Management Regulations) and Adopting RESOLUTION NO.
16-082, A Resolution Approving Publication of Ordinance No. 534 by Title and Summary.”
Mayor Zerby stated the ordinance contains a comment about manufactured houses. He asked if the City
allows them. Director Nielsen noted the City has to allow them per the state; there is only one is
Shorewood. He explained the City has requirements for them. For example, they have to have a
permanent foundation and they have to be a certain size.
Director Nielsen stated references to mobile home parks, camp grounds and industrial property were
removed from the model ordinance.
Councilmember Siakel stated the map indicates the all of the two Islands are not in a floodplain. Director
Nielsen stated it says they are not; they are in a reduced flood hazard. Councilmember Woodruff
explained there are different levels and the Islands are still in the X level in general and that means
reduced/low risk for flooding.
Motion passed 4/0/1 with Labadie abstaining.
9. ENGINEERING/PUBLIC WORKS
A. Accept Quotes and Award Contract for Guard Rail Improvements – Lake Linden
Drive and Excelsior Boulevard
Engineer Hornby explained the City does have existing guard rail along Excelsior Boulevard. It has aged
and appears to be a reduced height from where it should be today. Guard rail will be added along Lake
Linden Drive and Yellowstone Trail. There is $40,000 budgeted for that in the 2017 Capital Improvement
Program for roadway maintenance. The City solicited quotes from a number of contractors and it only
received one quote. The lowest responsible quote received was from Warning Lites with a low quote of
$27,000.20. Staff recommends Council accept the quote and award the contract to Warning Lites. The
plan is to get the work done this fall.
Sundberg moved, Labadie seconded, Adopting RESOLUTION NO. 16-083, “A Resolution
Accepting Quote and Awarding Contract for the 2016 Guard Rail Project to Warning Lites for an
Amount Not to Exceed $27,000.20.” Motion passed 5/0.
Discussion moved to Item 10.A on the agenda.
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B. Zoning Permit for Incidental Use of Public Right-of-Way
Applicant: Alex Ugorets
Location: 175 Brentwood Avenue
This was discussed after Item 8.B on the agenda.
Engineer Hornby explained that Alex Ugorets, 175 Brentwood Avenue, Tonka Bay, submitted a request
for a zoning permit for the incidental use of public right-of-way (ROW) off Timber Lane to provide a
second access to his property. Staff has received comments from both the applicants and the residents in
the area. It appears that there has been an access to the Timber Lane ROW since late 2008 or early 2009.
The meeting packet contained copies of aerial photographs reflecting that.
The house on the 175 Brentwood Avenue property had been replaced. Timber Lane may have acted as an
access point during the construction of the new house. A 2009 photo reflects the restoration of some turf
that went out to Timer Lane. There is also a 2014 photo that shows the access from a street view.
When working with Planning Department personnel it was determined that there is not enough direct
combined frontage to allow a secondary access per the City’s Zoning Code. The access could be allowed
by approval of an incidental use of the public ROW.
He noted staff recommends approval of the incidental use of the public ROW for an access to Timber
Lane subject to the following conditions.
1. The access point does not exceed four feet in width.
2. The access is not used as a secondary driveway.
3. The access is not used for parking of vehicles.
4. The applicant does not use the access for the purpose of storing motor vehicles including boats,
snow machines, all-terrain vehicles, cars, trucks and other motor vehicles through this access.
5. The access does not impede drainage off the street.
6. The access is turf or wood chips surfaced.
7. The access is maintained by the owner.
8. Non-public signs are not allowed in the City ROW.
9. Upon reasonable notice, the use of the access will be restricted or cancelled if the City finds the
condition of the access is not in compliance with the terms as stated.
He noted that the packet contains copies of resident correspondence the City received.
Hornby stated that if Council concurs with staff’s recommendation to approve the request Council should
direct staff to prepare a resolution approving the request including the list of conditions of approval for
Council’s consideration.
Alex Ugorets, 175 Brentwood Avenue, explained the access from Timber Lane to his house has existed
for many years. He has a 2000 photo from Hennepin County that clearly shows that driveway. He and his
family have lived there for eight years. The access was part of the vacated St. Louis Avenue that was
vacated by either Tonka Bay or Shorewood many years ago. Their house was designed and built with the
Timber Lane access point in mind to access their backyard and the trail.
He clarified that he was not asking for a new driveway. He wants to improve the existing driveway that he
already has. He explained that all he needs is an approximate 12 foot wide gravel access point to make it
more obvious to help in trying to keep people from parking in front of it. The access point is used by
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October 24, 2016
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vehicles twice a year when he brings a vehicle in or out of storage from his underground garage; that can
only be accessed from that side. His father stores a car there when he goes to Florida. It may also be used
if his landscaper needs to bring materials to his backyard. He stated approving his request would not
affect the traffic patterns on Timber Lane. His guests do not park on Timber Lane.
He noted there are numerous residential properties in Shorewood that have two frequently used driveways
and some do not meet the Shorewood standards.
He stated that approving his request subject to the conditions stipulated would only further restrict his use
of that access point. He explained that this year he has noticed a significant increase in cars and boat
trailers being parked on Timber Lane. For whatever reason, they were always parked in front of his access
point blocking it. Timber Lane was not designed or built to accommodate all of those cars and boat
trailers; therefore, they park in the grassy area of the shoulder, his access point, making their access point
a mud puddle and creating deep ruts at the edge of his property. He thought that because the access point
was not obvious people did not realize they were clocking it.
He noted he bought and put out two signs which disappeared after a few days. He bought two more signs
which were torn out and thrown onto his property. He explained he was informed by City staff that
putting private signs in the public ROW is not allowed and staff suggested he apply for a permit to
improve the existing access point. He reiterated that he wants to make the access point more obvious so
people do not block it. He stated he is only talking about a 12 foot wide section of Timber Lane and that
is less than the length of one car.
He stated there is no drainage ditch or any type of drainage system along Timber Lane (a cul-de-sac).
Therefore, much of the stormwater drains on to his property. Because of that, a mulch or turf access point
does not work. The surface needs to be impervious. He is happy to pay for doing that and provide proper
drainage with a culvert or whatever.
He then stated his main request can be solved by allowing him to post two signs asking people not to
block his access. He has also filed the application before Council this evening.
He clarified he is asking the City to post two no parking and do not block signs. If Council will do that he
will withdraw his application. If the signs are not approved then he is asking that he be allowed to have an
access point 12 feet wide that is paved with bituminous or concrete. He stated if neither of those two
things is acceptable or if Council has questions or concerns he would like to know that so he can weigh
his options. He could possibly withdraw his application or speak with a lawyer before the application is
approved with the conditions recommended by staff.
Mr. Ugorets stated if Council approves his application with staff’s conditions it makes his access more
restrictive for him and that is bad. If Council denies his application it is also bad.
Stephen Farnes, 5445 Timber Lane, noted that he and a lot of his neighbor oppose giving the rights to the
applicant, who lives in Tonka Bay. He explained Timber Lane was setup in 1949. There has always been
somewhat of a green strip that separate Timber Lane from Tonka Bay. The purpose of that was to keep
people from Tonka Bay from thinking they had access on Timber Lane; it is a cul-de-sac with has some
very expressive homes around it. A request the nature of the applicant’s request has never come before
the Shorewood City Council even though Timber Lane was established prior to the extension of the City
of Shorewood. He asked who gave the applicant the impression that he had access to Timber Lane. He
stated the applicant indicated he designed his home thinking that he had access to Timber Lane. He hoped
staff did not tell him that because that is bad information.
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October 24, 2016
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He explained that at one time he was considering purchasing the applicant’s property. The previous owner
of the property had a modest house and he worked his land. Someone else purchased the property. The
house was replaced with a house that had about 6,000 square feet of living space over 4 levels. The lower
level is over 2,000 square feet; it faces south. There is a garage stall there also. He had spoken with
Director Nielsen early on in the construction of the new house and indicated that he had hoped the new
property owner did not think they could have a driveway on to Timber Lane. Nielsen stated that would
not be possible. During construction Timber Lane was used as an access point; he told Nielsen that he did
not want them to make a habit of that. The property owner is growing things in his back yard and they
have structures there. Big trucks go back and forth periodically.
Mr. Farnes stated there is no advantage to Shorewood to grant the applicant the rights requested. He then
stated there are a couple of other properties located in Tonka Bay that could piggyback on to this. He
went on to state the applicant confirmed that he wants to have a wide driveway that would access the
lower level of his house. He does not think that should be allowed. He cautioned against letting that be the
“foot in the door” for other property owners. He thought approving the applicant’s request could set a
precedent. He appreciates there is no way to access the applicant’s back yard except via Timber Lane but
it should not be Shorewood’s problem to fix.
Ron Zenk, 5435 Timber Lane, noted that four of the nine property owners along Timber Lane are present
this evening and another sent a letter to the City. He explained there are four driveways and mailboxes
around the cul-de-sac and there already is no parking on that side of the circle. Having no parking in front
of the access would eliminate one of the treasured parking spots. He stated he thought it would be
possible to arrange for on certain days to have things like landscaping delivered. He then stated that
although it would be an incidental use permit it would be a permanent parking ban for that spot. He noted
there is not a compelling need to benefit Shorewood. It would harm some Shorewood residents for a
marginal benefit for Tonka Bay. He clarified he was not intending to offend anyone.
Mike Kramer, 5425 Timber Lane, noted that he has lived in his house for about 36 years. He also noted
Tonka Bay has much less restrictive side yard setbacks. Therefore, it would be difficult to get much more
than a wheelbarrow on either side of the applicant’s home to get things to his backyard. He explained that
what the applicant wants to use as a driveway was previously used to access a garden in the back yard. He
did not think vehicles were used to go back there.
He stated it is clear that the applicant needs to get to his backyard. From his perspective he does not have
a problem with granting an incidental use access there in order to get to the applicant’s back yard.
Bringing a vehicle in/out once or twice a year or bringing landscape materials back there is not an issue
for him He noted he was surprised to learn about the garage Mr. Farnes alluded to. He stated parking on
Timber Lane is a concern but he does not understand why the loss of one parking space would be a big
issue. He stated he thought the problem could have been solved if the applicant had been allowed to put
up the no parking in the driveway signs.
He noted he would not want the access to have an asphalt or concrete surface; that would make it look to
permanent. He also noted there is a drainage issue in that area. He explained the city engineer has looked
into how the stormwater flows in that area.
He stated the previous owner of the applicant’s property was a little mislead in hoping that water would
run up hill. The previous owner had hand dug a ditch along the trail ROW (it was the railroad ROW at
that time) from his property to near the trail crossing at Timber Lane.
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October 24, 2016
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He reiterated that area has a drainage problem. He suggested the Shorewood and Tonka Bay city
engineers discuss how the problem could be handled. He explained there are two culverts, one to the far
east and one to the far west, that are supposed to drain that area. Unfortunately, they do not do a very
good job of draining. Two years ago the high water basically flooded the applicant’s back yard so the
applicant built his gardens up higher.
Mr. Kramer stated that maybe letting the applicant put up a couple of signs and asking him to let the grass
grow and allowing him to put a little sand or dirt there periodically could provide the applicant with the
access he needs.
Pete Wattson, 5495 Timber Lane, noted he does not know about the property. He stated he came to the
meeting to listen and learn about the request and recommendations. From his perspective, for a narrow
access covered with woodchips along with the conditions identified by Engineer Hornby make sense to
him. Because the applicant has indicated that the conditions would not work for him, he suggested the
application be rejected. Maybe something else could be worked out at another time.
Councilmember Siakel stated allowing what the applicant has requested does not comply with
Shorewood’s Zoning Code. She thought staff identified from her perspective some reasonable conditions.
But, the applicant has indicated the conditions would make it worse for him. Therefore, she supports
denying the request.
Councilmember Sundberg concurred with denying it and stated that maybe something more feasible
could be developed but she was unsure that is the case for this.
Councilmember Woodruff stated that he does not think it would be appropriate for Shorewood to grant
this access. He would support denying the request if for no other reason than if the City puts the access in
as an official approved use any future owner of the property could use the access for various purposes
especially because there is a garage on the back of the house that faces to the back yard.
Councilmember Labadie stated neighborhood issues are always difficult. She commended the applicant
for going through the proper channels with the City. She stated one of the residents who spoke this
evening summed up the issue of Tonka Bay having such small side yard setback requirements. That is not
Shorewood’s problem. She noted the backyard access does not comply with Shorewood’s Code. She
stated that although she will feel bad about doing so she will also vote to deny the request.
Mayor Zerby asked Director Nielsen if there is a difference between Council denying the application
versus Mr. Ugorets withdrawing his application with regard to his options going forward. Director
Nielsen stated it is a little late to withdraw his application now because it is before Council for action.
Director Nielsen stated when he spoke with the City Attorney earlier in the day the Attorney reminded
him that the applicant does not have the length of frontage that lots need to have two driveways.
Shorewood properties need to have 240 feet of frontage to have two driveways. Because the applicant’s
property frontage on Brentwood Avenue and Timber Lane combined does not meet the 240 foot
requirement it would require a variance.
Mayor Zerby stated parking is difficult on many of the City’s roadways. He noted parking is allowed
along Timber Lane but that causes him some concern because of the narrow width of the roadway and the
needs for emergency vehicles.
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October 24, 2016
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Siakel moved, Woodruff seconded, denying the incidental use of the public right-of-way for access
to Timber Lane from 175 Brentwood Avenue.
Mayor Zerby stated that he does not think the request fits with the Shorewood Code and that the
Attorney’s opinion is very accurate.
Motion passed 5/0.
Discussion returned to Item 8.C on the agenda.
10. GENERAL/NEW BUSINESS
A. Ladder Truck Lease Purchase Agreement with Excelsior Fire District
This was discussed after Item 9.A on the agenda.
Director DeJong explained the City has been approached by Excelsior Fire District (EFD) Chief Gerber
about the City’s possible desire to finance its new aerial truck; the EFD Board has approved the purchase
of. The truck and equipment for it would cost about $770,000. It would like to have the same financing
arrangement that it has on its Engine 22 lease. The rate interest rate for Engine 22 is 1.75 percent over the
course of five years. That is a reasonable interest rate currently in terms of other investments the City
could get for a five-year period. He thought the interest rate is more likely to go up in today’s investment
environments then it is to go down. If Council approves moving forward with this, he will prepare a
formal lease purchase agreement and applicable legal documents for consideration during a Council
meeting in November. He noted he thought it prudent to give Chief Gerber some indication of whether or
not the EFD can expect Shorewood to do the financing.
Councilmember Siakel stated she thought the City of Tonka Bay wanted to provide a portion of the
financing. Director DeJong stated he thought Tonka Bay may want to finance up to $150,000 of it. Siakel
asked what needs to be done to confirm what Tonka Bay wants to do. DeJong noted that he had not
spoken with Chief Gerber in the last week. Siakel stated there needs to be a clear understanding of what
Tonka Bay wants to do. If Tonka Bay wants to participate then that should be allowed to happen.
Councilmember Woodruff expressed his surprise that the City of Deephaven does not want to finance a
portion of it. He stated he would like the interest rate to be 2 percent because he anticipates that in two
months that will be the interest rate on a 10-year bond. The interest rate should be where the market is
going and not where it has been. He thought 2 percent would still be a good deal; much better than the
EFD could get from a lending institution.
Woodruff stated the staff memorandum indicates the funding would come from the General Fund. The
General Fund does not have the money to do that. He asked where the cash is going to come from.
Director DeJong stated the General Fund has a fund balance in excess of $4 million. Woodruff explained
if that financing was taken out of the General Fund it would bring the balance down below the level
specified in the General Fund Balance Policy. He is not interested in changing the Policy to finance the
truck. He stated the Water Fund could make a loan. He asked staff to come back with a good answer to
the funding source. DeJong stated from a technical standpoint if the cash was taken out and the payback
was considered a receivable it would not be considered as part of the fund balance any more. DeJong
noted that he did not think through the ramifications of that from a balance sheet standpoint.
CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES
October 24, 2016
Page 14 of 16
Woodruff then stated the City has excess reserves of about $500,000 and that would not be able to cover
the financing even if Tonka Bay financed $150,000 of the lease purchase.
Director DeJong stated he was attempting to fund the financing out of a place where there is a benefit to
some tax supported services. He then stated there is plenty of balance in some of the enterprise funds to
finance the truck. But, then the interest would go into the enterprise funds. Councilmember Woodruff
stated Council could decide the interest goes somewhere else and noted that he could support that.
Mayor Zerby stated there is some amount of interest the City would be saving by not financing it through
a lending institution or by bonding. Councilmember Woodruff stated the City would save one-half of the
interest. Zerby stated there would be a savings to the City by using cash as opposed to financing with an
outside institution or bonds.
Councilmember Woodruff stated he does not want violate the City’s Fund Balance Policy and risk
lowering its bond rating.
Councilmember Siakel stated she thought Council agreed that it would like the City to fund the truck but
it wants to know how that would be done. Council needs to know that answer soon. Councilmember
Woodruff concurred.
Woodruff moved, Siakel seconded, directing staff to prepare a ladder truck lease purchase
agreement with the Excelsior Fire District for an amount of approximately $770,000 at an interest
rate of 2.0 percent and to get that before Council as soon as possible. Motion passed 5/0.
11. STAFF AND COUNCIL REPORTS
A. Administrator and Staff
1. Trail Schedule
Mayor Zerby stated it appears that the punch list items for the Smithtown Road East Sidewalk Extension
Project have been completed. Engineer Hornby clarified there are still a couple of items that need to be
taken care of but they are not noticeable to the average person. Hornby stated he prefers not to keep the
project open into 2017 but if that becomes necessary the City will withhold some of the money due to the
contractor until those items are addressed.
Zerby thought the sidewalk looks good and he thanked staff for its efforts.
2. Monthly Budget Report
Mayor Zerby noted the meeting packet contains a copy of the September 2016 Monthly Budget Report.
Councilmember Siakel stated the 2016 year-to-date budget is in good shape and noted that it will be in
better shape at year-end because the City will receive permit fees for the Oppidan senior living project by
then.
Other
Director Brown stated the City will take delivery of its new snow machine in the next week or two. The
snow machine is for clearing the walkways. He then stated Public Works staff is in the process of doing
CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES
October 24, 2016
Page 15 of 16
the last round of roadway patching. The sealcoat project has been completed. The sweeping of roadways
will be started in the near future. Sewers are being jetted and water mains are being flushed. He noted that
during October he rates roadways for the condition they are in. That effort is just about complete.
Mayor Zerby stated he thought the paint on the traffic signals at Vine Hill Road and Old Market Road is
coming off. He asked if it would be possible to have other agencies cost share in improvements to them.
Director Brown explained the signal at Vine Hill Road has been held off because of the anticipated signal
replacement project and noted he would assess the signal at Old Market Road.
Engineer Hornby explained the wear course was placed on Star Lane and Star Circle. There is a minor
drainage issue in that area that he is working on. The seeding of Badger Park was done earlier in the day.
Watermain work has started; the surfaces for Yellowstone Trail, Glencoe Road and Park Street were
finished today. The plan is to have the roadways paved by mid-November. CenterPoint Energy is
replacing its gas main and services in conjunction with the watermain extension project.
Hornby then explained that for the Minnetonka Country Club (MCC) development project a lot of its road
work is being done. There are heavier trucks going to and from the site. The aggregate base is being
hauled in. Once that is approved for paving there will be the heavy trucks hauling bituminous in. After
that the volume of heavy trucks should go down. The project had planned to have the paving done by the
end of October but that is more than a week behind schedule. Councilmember Sundberg asked if that
information has been conveyed to Chris Gehrke, 24650 Smithtown Road. Hornby stated he would contact
him via email.
Mayor Zerby stated a resident asked him why the roadways are not cleaned with water instead of dry
brushes. Engineer Hornby explained that once water is put down it becomes mud and the fines get stuck
in the pavement. Using a pickup broom works the best.
Engineer Hornby explained the City did receive scores back for federal funding it applied for through the
Metropolitan Council for the Galpin Lake Road Trail segment construction. There were seven
applications. The Shorewood project scored the lowest of the seven. He thought that was more of a cost
effectiveness issue. He clarified that does not mean it won’t get funded. He stated he anticipates hearing
about funding in December.
Acting Administrator/Clerk Panchyshyn stated she is primarily focused on the upcoming election.
Attorney Keane thanked Mayor Zerby and South Lake Minnetonka Police Department (SLMPD) Chief
Meehan for bringing the need to update the regulations regarding sexual offenders to staff’s attention.
Staff will do that shortly.
B. Mayor and City Council
Councilmember Labadie provided an update on a recent SLMPD Coordinating Committee quarterly
meeting she attended in place of Mayor Zerby. She encouraged people to be thankful of Chief Meehan.
She thought he was very responsible and fiscally observant chief of police. She explained there is funding
earmarked for a new community service officer vehicle. Meehan has decided to not move forward with
that purchase at this time. She then explained that many public safety agencies are using dashboard
cameras. The agencies have budgeted for the purchase of the cameras but they did not budget for the
storage of immense amount of data that must be stored. The SLMPD had considered updating from
dashboard cameras to body cameras. Meehan has recommended not to move forward with the update at
CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES
October 24, 2016
Page 16 of 16
this time. The body cameras are more expensive and require more data storage capabilities. She noted that
she was impressed that he had the foresight to move forward with that slowly.
Councilmember Siakel asked if Chief Meehan provided any insight on what storage would cost.
Mayor Zerby explained the data has to be secured in a manner that makes it legitimate for court use. Not
all service providers have the type of encryption that is required.
Councilmember Siakel asked if there are advantages of one type of camera over the other.
Mayor Zerby noted the SLMPD is in the process of updating its dash cameras. He stated that body
cameras provide more expansive views of what is occurring. He explained the SLMPD upgraded its
digital system for the facility a few years ago. That has the ability to plug the cameras into it and go out to
the service it connects to.
Councilmember Labadie noted the SLMPD is in the process of hiring. She also noted the SLMPD
displayed its new police badges and uniform patches to the Coordinating Committee.
Mayor Zerby thanked Councilmember Labadie for attending the meeting in his absence.
Councilmember Sundberg stated she is participating on the Hennepin County Comprehensive Plan
Advisory Committee which is just starting its effort. She can already tell that it is leaning heavily toward
the City of Minneapolis. She will be working with representatives from other western suburbs to make
sure their needs are taken into account. The demographics in the suburbs are quite different. She noted it
is a three year process.
Mayor Zerby thanked Councilmember Siakel for filling in for him as mayor during his absence. He
recognized the incoming City Administrator Greg Lerud who was in the audience.
12. ADJOURN
Woodruff moved, Labadie seconded, Adjourning the City Council Regular Meeting of October 24,
2016, at 8:56 P.M. Motion passed 5/0.
RESPECTFULLY SUBMITTED,
Christine Freeman, Recorder
ATTEST:
Scott Zerby, Mayor
Jean Panchyshyn, City Clerk
#3A
MEETING TYPE
City of Shorewood Council Meeting Item
Regular Meeting
Title / Subject: Verified Claims
Meeting Date: November 14, 2016
Prepared by: Michelle Nguyen, Senior Accountant
Bruce DeJong, Finance Director
Attachments: Claims lists
Policy Consideration:
Should the attached claims against the City of Shorewood be paid?
Background:
Claims for council authorization.
63037 - 63044 & ACH 39,998.77
63045 - 63139 & ACH 731,798.97
Total Claims $771,797.74
We have also included a payroll summary for the payroll period ending October 30, 2016.
Financial or Budget Considerations:
These expenditures are reasonable and necessary to provide services to our residents an
budgeted and available for these purposes.
Options:
The City Council is may accept the staff recommendation to pay these claims or may r
expenditure it deems not in the best interest of the city.
Recommendation / Action Requested:
Staff recommends approval of the claims list as presented.
Next Steps and Timelines:
Checks will be distributed following approval.
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#3B
MEETING TYPE
City of Shorewood Council Meeting Item
Regular Meeting
Title / Subject: 2017 Concession Operation Agreement
Meeting Date: November 14, 2016
Prepared by: Twila Grout – Park and Rec
Reviewed by: Brad Nielsen – Planning Director
Jean Panchyshyn – City Clerk
Attachments: 2017 Concession Operation Agreement
Policy Consideration:
Approving the concession agreement for 2017 with Russ WIthum.
Background / Previous Action
The Park Commission at its October 25, 2016 meeting agreed to have Russ Withum provide concession
services at Freeman Park, Eddy Station in 2017. Services will be provided Monday through Sunday,
from 5:30 to 8:30 p.m. on or about May 1 and continue through August 1 or when the sports
organizations have concluded their events.
Mr. Withum has provided concession services since 2005. He has done a very good job with the
concession services over the years, and has always been willing to open up for other events.
Financial or Budget Considerations:
The contractor has agreed to pay the city $394 for the 2017 season. Payment will be due September 30,
2017. A copy of the agreement is attached.
Recommendation / Action Requested:
The Park Commission recommends the City Council approve formalizing the Concession Agreement for
2017 with Russ Withum.
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
Independent Contractor
2017 Concession Operation Agreement
By and Between City of Shorewood and Contractor
THIS AGREEMENT
, made this ____ day of November 2016, by and between the City
of Shorewood, Minnesota, a Minnesota municipal corporation with its offices located at 5755
Country Club Road, Shorewood, Minnesota 55331 (the "City") and Russ Withum, 4924 Three
Points Blvd., Mound, MN 55364 (the “Contractor”)
REClTALS
WHEREAS
, the City is engaged in the business of providing municipal services
including park and recreation opportunities within the corporate limits of the City. The City has
constructed a concession/restroom/picnic facility in Freeman Park within the City known as
Eddy Station; and
WHEREAS
, the City desires to provide concession services to the patrons of Freeman
Park through the facility of Eddy Station; and
WHEREAS
, the City further desires to enter in to an agreement with the Contractor for
the operation and provision of concession services.
NOW, THEREFORE
, the parties agree as follows:
1.) Schedule of Operation. Contractor agrees to provide concession services Monday
through Sunday, from 5:30 to 8:30 p.m., commencing on or about May 1 or whenever the first
organized sports events begin. Concession operations will continue through August 1, or
whenever Freeman Park ceases its summer use by MGSA, Adult Softball and Tonka United
Soccer. Contractor agrees to coordinate operations with the Park Scheduling Coordinator.
2.) Contractor Responsibilities.
a.) Contractor agrees to be present each day for opening, training of sales
volunteers, and all duties involved with closing the operation at the end of the day.
Contractor agrees that if for any reason he is not able to be present for any period of time,
while the concession operation is open, he will be available by pager or cell phone for
immediate assistance at the site.
b.) Contractor agrees to be responsible for the cleaning and maintenance of
the concession area.
3.) Contractor Payment. The Contractor agrees to pay the City $394 for the year
2016. Payment due to the City by September 30, 2017.
4.) Purchasing. The Contractor agrees to purchase the necessary products and
supplies associated with concession sales at Eddy Station.
5.) Equipment. The City agrees to provide the hot dog machine, popcorn machine,
cash register, pop cooler, refrigerator and coffee machine.
6.) Termination. Either party may terminate this Agreement, without cause or reason,
upon thirty (30) days' written notice to the other party. Either party may terminate this
Agreement without notice for cause. "Cause" includes, but is not limited to, dishonesty, failure to
meet deadlines, criminal conduct, or breach of this Agreement.
7.) Status of Contractor. As intended by both parties, this Agreement calls for the
performance of the services of Contractor as an independent contractor and Contractor will not
be considered an employee of the City for any purpose.
a.) The manner and means of performance of Contractor shall be entirely at
Contractor's discretion. Contractor is free to employ personnel to assist Contractor in
providing services to the City, but such employees shall be Contractor's responsibility
and not that of the City. The City shall not provide Contractor or Contractor's employees
or agents with any benefits from the City such as workers compensation insurance,
unemployment insurance, health insurance, income tax withholding, or social security
contributions. The City does not control the performance of Contractor and Contractor
accepts all risk of profit and loss flowing from the services provided under this
Agreement. All expenses must be borne by Contractor and shall not be reimbursed by the
City. Those expenses include furnishing Contractor's place of work, payroll expenses,
taxes, and insurance.
b.) Contractor shall conspicuously identify himself to all persons and
organizations as an independent contractor and shall not represent or imply that this
Agreement authorizes Contractor to act as an agent for, or on behalf of, the City. Neither
the City nor Contractor shall be responsible for any agreement, representation, or
warranty made by the other, nor shall the City be obligated for damages to any person or
organization for personal injuries or property damage arising directly or indirectly out of
the conduct of Contractor's business or caused by Contractor's actions, failure to act,
conduct or negligence.
8.) Indemnification. Contractor agrees to indemnify and hold the City harmless from
and against any and all claims by or on behalf of any person arising from Contractor's actions,
failure to act, conduct, or negligence while performing services pursuant to this Agreement
unless such damage or liability arises from or in connection with faulty or defective materials or
facilities provided by the City. Contractor agrees to carry Commercial liability insurance in the
amount of $1,000,000.
9.) Entire Agreement. This Agreement contains the entire agreement between the
parties and no amendment hereto shall be valid unless made in writing and signed by the parties.
There is merged herewith all prior and collateral representations, promises, and conditions
concerning Contractor and the City. This Agreement supersedes and nullifies any preexisting
agreements between the parties relating to the subject matter of this Agreement. All agreements
as to payments to be made to Contractor for particular projects must be in writing.
10.) Severable. In the event any portion of this Agreement shall be held to be invalid
the remainder of the Agreement shall continue in full force and effect.
11.) Notices. Any notice required or permitted to be given under this Agreement shall
be sufficient if it is in writing and sent by registered or certified mail to Contractor's residence or
to the principal office of the City, which ever shall be applicable.
12.) Governing Law. This Agreement shall be construed and enforced in accordance
with the laws of the State of Minnesota.
IN WITNESS WHEREOF
, the parties have executed this Agreement the day and year
first above written.
CITY OF SHOREWOOD CONTRACTOR
By:_______________________________ By:___________________________________
Its:_______________________________ Its:____________________________
#3C
MEETING TYPE
City of Shorewood Council Meeting Item
Regular Meeting
Title / Subject: City Hall Holiday Schedule and Office Hours
Meeting Date: November 14, 2016
Prepared by: Greg Lerud, City Administrator
This year, the December Christmas holiday schedule provides for ½ day holiday on Friday, December 23
and a full day holiday on Monday, December 26. For the New Year’s holiday, the office is closed on
Monday, January 2.
Phone and walk-in business is typically very slow the week between Christmas and New Years. Many
staff use vacation time for part or all of that week, so a skeletal crew is typically on duty. Staff is
requesting to officially close city hall this year all day on Friday, December 23 for the Christmas Holiday,
and all day on Friday, December 30, for the New Year’s holiday. City Hall Staff may use their personal
day, vacation or accrued comp time for the time off.
As established by the Union contract, the Public Works Department will remain open for the ½ day on
Friday, December 23 and all day on Friday, December 30.
City Hall 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 Christmas holiday on Friday, December 23
and for the News Years holiday on Friday, December 30, and allow staff to use their personal holiday,
vacation, or comp time for the ½ day on December 23 and the full day on December 30.
Mission Statement: The City of Shorewood is committed to providing residents quality public services, a
healthy environment, a variety of attractive amenities, a sustainable tax base, and sound financial
management through effective, efficient, and visionary leadership. Page 1
City of Shorewood Council Meeting Item
Title / Subject: Authorizing advertisement for Planning Director position
Meeting Date: November 14, 2016
Prepared by:
Reviewed by:
Attachments
Greg Lerud
Proposed ad
Policy Consideration:
Brad Nielsen said he will be done with full -time employment at the end of February, 2017.
Background:
91
MEETING TYPE
Regular Meeting
Financial or Budget Considerations:
Until a replacement is identified it is not known when they can start, but I am hopeful a candidate can
be identified and hired so there can be a smooth transition and give them the chance to work directly
with Brad for a period of time.
Options:
Recommendation / Action Requested:
Approve the advertisement for the opening and authorize publication.
Next Steps and Timelines:
Position is open until filled, but applications are due December 19. Review will begin the next day, and a
tentative schedule is as follows:
Week of 12/26 — Arrange interviews
Week of 1/9 — Conduct interviews
Week of 1/16 — Second interviews (if necessary) & background and credentials check
Week of 1/23 — Offer
I realize this is a little longer process than is hoped for, but it is realistic given the time of year. However,
we will work to take advantage of shortening the process where possible.
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
The City of Shorewood (pop. 7,500) is accepting applications for Planning Director to oversee the city's
planning and building departments. Shorewood is predominately a residential community located on
the south shore of Lake Minnetonka. Position is responsible for development, administration, and
implementation of the comprehensive plan, as well as revising ordinances pertaining to land use and
zoning. Bachelor's degree in Urban Planning or related field, and three years of related municipal or
consulting work required; master's degree preferred. Starting salary DOQ but anticipated to be mid -
$80s. Applications are due by 4:30 pm on December 19, 2016. Applications are available at Shorewood
City Hall, 5755 Country Club Road, (320) 960 -7905, or at the city's website, www.ci.shorewood.mn.us.
Position open until filled, but first review of applications will begin December 20.
#3E
MEETING TYPE
Regular Meeting
City of Shorewood Council Meeting Item
Title / Subject: Certification of Delinquent Charges
Meeting Date: November 14, 2016
Prepared by: Bruce DeJong
Reviewed by: Michelle Nguyen
Attachment: 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 the County each year. This year’s amount of
$35,144.80 is substantially lower than last year’s $37,940.96. Residents can still pay off the amounts
due prior to December and avoid certification fees.
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.
Mission Statement: The City of Shorewood is committed to providing residents quality public services, a
healthy environment, a variety of attractive amenities, a sustainable tax base, and sound financial
management through effective, efficient, and visionary leadership. Page 1
CITY OF SHOREWOOD
RESOLUTION NO. 16-
A RESOLUTION DIRECTING DELINQUENT CHARGES BE PLACED ON THE 2016
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:
That the Hennepin County Special Assessment Division is hereby authorized to certify the
delinquent charges, on the 2016 property tax rolls, payable in 2017, for the following services:
Shorewood Delinquent Charges $35,144.80 Exhibit A
th
ADOPTED BY THE CITY COUNCIL
of the City of Shorewood this 14 day of
November, 2016.
_________________________________
ATTEST: Scott Zerby, Mayor
_________________________________
Jean Panchyshyn, City Clerk
City of Shorewood Delinquent
Utili Bills Certified to 2017 Taxes
C ustomer
PILJ
't ater
..rEiY�'
# 19511#
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: 116�'1V
19519
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Violation
Certified
Amount
L+Fvi"S' ,..
# 19520
IJ
# 19521
A t3 itTtt
Lein
19522
006929 -000
25- 117 -23 -22 -0016
325.36
110.87
47.60
483.83
008134 -000
25- 117 -23 -23 -0044
236.85
379.36
70.95
71.97
759.13
007197 -000
25- 117 -23 -32 -0020
325.36
87.80
61.60
474.76
006860 -000
25- 117 -23 -33 -0002
158.84
59.51
28.14
246.49
007205 -000
25- 117 -23 -33 -0071
245.22
67.85
46.20
359.27
006855 -000
25- 117 -23 -34 -0025
325.36
114.30
61.60
501.26
005957 -000
25- 117 -23 -44 -0026
156.62
328.72
87.80
61.60
634.74
007509 -000
25- 117 -23 -44 -0049
325.36
87.80
61.60
474.76
006098 -000
25- 117 -23 -44 -0063
271.06
325.36
87.80
61.60
745.82
006869 -000
26- 117 -23 -11 -0012
325.36
87.80
61.60
474.76
007483 -000
26- 117 -23 -14 -0011
325.36
87.80
61.60
474.76
006885 -002
26- 117 -23 -14 -0105
61.52
61.52
006885 -000
26- 117 -23 -14 -0107
87.80
87.80
007265 -000
26- 117 -23 -14 -0110
325.36
87.80
61.60
474.76
006761 -000
30- 117 -23 -23 -0002
1,125.00
1,125.00
007512 -000
30- 117 -23 -24 -0004
325.36
87.80
61.60
474.76
006786 -000
30- 117 -23 -33 -0003
325.36
87.80
61.60
474.76
006791 -000
30- 117 -23 -33 -0026
325.36
87.80
61.60
474.76
007041 -000
30- 117 -23 -41 -0001
325.36
114.30
61.60
501.26
007534 -000
30- 117 -23-42 -0003
325.36
87.80
61.60
474.76
008245 -000
30- 117 -23 -42 -0012
61.56
61.56
007056 -000
31- 117 -23 -14 -0002
325.36
87.80
61.60
474.76
005338 -000
31- 117 -23 -14 -0026
247.80
325.36
87.80
61.60
722.56
005329 -000
31- 117 -23 -41 -0014
347.00
332.65
89.61
63.00
832.26
005678 -000
31- 117 -23 -43 -0010
578.09
332.65
116.66
63.00
1,090.40
007122 -000
31- 117 -23-44 -0026
157.22
58.98
27.43
243.63
007877 -000
32- 117 -23 -11 -0002
325.36
87.80
61.60
474.76
007873 -000
32- 117 -23 -11 -0018
325.36
87.80
61.60
474.76
007805 -000
32- 117 -23 -11 -0024
412.79
109.56
78.40
60075
006979 -000
32- 117 -23 -12 -0008
208.92
88.32
46.20
343.44
006985 -000
32- 117 -23 -12 -0027
87.80
87.80
006983 -000
32- 117 -23 -12 -0034
325.36
87.80
61.60
474.76
007000 -000
32- 117 -23 -13 -0008
325.36
87.80
61.60
474.76
007867 -000
32- 117 -23 -14 -0017
325.36
87.80
61.60
474.76
007627 -000
32- 117 -23 -14 -0031
242.85
49.71
32.20
324.76
006728 -000
32- 117 -23 -21 -0014
1
325.36
87.80
61.60
474.76
005481 -000
32-117-23-24-0024
221.87
165.08
62.34
30.80
480.09
005527 -000
32- 117 -23 -43 -0037
419.37
325.36
87.80
61.60
894.13
005389 -000
32- 117 -23 -44 -0015
317.29
325.36
87.80
61.60
792.05
005603 -000
32- 117 -23 -44 -0062
63.19
215.85
34.83
32.20
346.07
007552 -000
33- 117 -23 -11 -0055
165.08
23.96
30.80
,
219.84
City of Shorewood Delinquent
Utili Bills Certified to 2017 Taxes
'rUstome'
PIC
Water
I�e�uu '
19518
SeN er
lie
19519
Storm ter
Recycling
Violation
Certified
Amount
ML
# 19520
l.O
# 19521
Account
LEL
# 19522
006418 -000
33- 117 -23 -12 -0017
325.36
87.80
61.60
474.76
006699 -000
33- 117 -23 -14 -0043
325.36
87.80
61.60
474.76
007164 -000
33- 117 -23 -21 -0033
172.84
24.87
32.20
229.91
007169 -000
133-117-23-22-0018
33- 117 -23 -21 -0036
118.09
13.07
16.80
147.96
007842 -000
165.08
47.90
30.80
243.78
007838 -000
33- 117 -23 -22 -0020
325.36
87.80
61.60
474.76
007618 -000
33- 117 -23 -23 -0039
325.36
87.80
61.60
474.76
007605 -000
33- 117 -23 -24 -0009
325.36
114.30
61.60
501.26
008051 -000
33- 117 -23 -32 -0013
220.83
67.85
41.51
330.19
006831 -000
33- 117 -23 -32 -0031
325.36
114.30
61.60
501.26
005546 -000
33- 117 -23 -33 -0040
23.28
172.28
24.47
23.27
243.30
006668 -000
33- 117 -23 -41 -0029
325.36
87.80
61.60
474.76
006654 -000
33- 117 -23 -42 -0001
325.36
87.80
61.60
474.76
007777 -000
33- 117 -23-43 -0005
245.22
67.85
46.20
359.27
007780 -000
33- 117 -23 -43 -0006
352.37
94.52
66.79
513.68
006290 -000
34- 117 -23 -21 -0029
80.18
310.78
84.18
58.80
533.94
007801 -000
34- 117 -23 -23 -0043
405.50
53.90
77.00
536.40
007801 -001
34- 117 -23 -23 -0043
405.50
53.90
77.00
536.40
008019 -000
34- 117 -23 -24 -0026
283.40
514.86
75.68
110.62
984.56
008139 -000
34- 117 -23 -24 -0032
114.64
165.08
23.96
30.80
334.48
006973 -000
34- 117 -23 -31 -0028
325.36
87.80
61.60
474.76
006268 -000
34- 117 -23 -31 -0036
65.25
165.08
42.94
16.80
290.07
007110 -000
34- 117 -23 -33 -0037
261.59
67.85
46.20
375.64
006906 -000
34- 117 -23-42 -0018
245.22
88.32
46.20
379.74
006919 -000
34- 117 -23 -43 -0023
325.36
114.30
61.60
501.26
006531 -000
34- 117 -23 -44 -0023
216.92
87.80
61.60
366.32
006914 -000
34- 117 -23 -44 -0060
245.22
102.30
46.20
393.72
006589 -000
35- 117 -23 -14 -0025
165.08
47.90
30.80
243.78
007029 -000
35- 117 -23 -31 -0027
325.36
87.80
61.60
474.76
006308 -000
36- 117 -23 -11 -0001
214.01
325.36
114.30
61.60
715.27
006361 -000
36- 117 -23 -11 -0024
61.52
61.52
00575(7 -000
36- 117 -23 -44 -0027
334.83
306.35
67.85
46.20
755.23
OG
.. ,..z,.,.w..., h. ..., x.,... .�.,.. . ...,.,,. ... ,_ .... ..
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2017 Total Certified 4,169.30
....
20,200.91
5,853.80
68 8 4;
3,782.41
1 1,125.00
526:5�i
54;6
35,131.42
#7A
CITY OF SHOREWOOD 5755 COUNTRY CLUB RD
PARK COMMISSION MEETING SHOREWOOD CITY HALL
TUESDAY, OCTOBER 25, 2016 7:00 P.M.
MINUTES
1. CONVENE PARK COMMISSION MEETING
Chair Mangold convened the meeting at 7:00 p.m.
A. Roll Call
;
Present: Chair Mangold, Commissioners Vassar, and Barrand City Planner
Nielsen
Absent: Kobs and Rock
B. Review Agenda
Vassar moved to approve the agenda as written. Barr seconded the motion. Motion carried 3-
0.
2. APPROVAL OF MINUTES
A. Park Commission Meeting Minutes of September 13, 2016
Barr moved to approve the minutes of the September 13, 2016 meeting as written. Vassar
seconded the motion. Motion carried 3-0.
3. MATTERS FROM THE FLOOR
There were none.
4. CONCESSION AGREEMENT FOR 2017
Nielsen stated the agreement has been $394 for the past several years. He indicated there was no interest
last year from any sports group that might want to take over the concessions.
Mangold moved to recommend approval of the concession agreement for 2017. Barr seconded the
motion. Motion carried 3-0.
5. FREEMAN PARK ICE RINK
A. Grading/Lighting Update for Rink
Nielsen reviewed a quote from Frehal Construction in the amount of $9,000 for grading. Soil
tests are needed for the light poles at a cost of $2000 which could also be done by Frehal. The
lights/electric would cost $25,000 for a total of $36,000. He indicated this was significantly less
than a quote from the previous year. He stated the timing would be an issue. We would be
looking at the end of December to begin work.
PARK COMMISSION MINUTES
TUESDAY, OCTOBER 25, 2016
4
PAGE 2 OF
Barr asked if December would be too late in the year to dig. Nielsen stated it probably would not
as they use an auger to perform the work.
Vassar asked what would happen if the work could not be done. Temporary lighting was cited as
a possibility.
Mangold stated the grading needs to be done, and we can still have the ice there. He suggested
temporary lighting rather than push permanent lighting.
Vassar asked if cement can be set in December. Nielsen stated cement can be poured into the
winter. He explained the process to install the poles and lighting.
Commissioners agreed grading would be the most essential. Mangold stated we need the ice.
Commissioners discussed lighting.
Commissioners discussed the size and proposed use of the rink and the possibility of adding a
loop around the rink for skating. They also discussed whether boards would be added at a future
date. Lighting locations were also discussed. Barr suggested staff look at whether the loop is
even a possibility and provide a design at the next meeting. Nielsen stated that could be done.
Commissioners agreed something should be done this season. Vassar stated we need lighting, and
commissioner concurred.
Mangold moved to recommend moving forward with the grading and power for a free
skate space at Freeman Park not to exceed $40,000. Barr seconded the motion. Motion
carried 3-0.
B. Review Costs for Concession Stand Partition Wall
No discussion.
REVIEW ATHLETIC FIELD RESERVATION FORM FEES FOR
6.
LACROSSE/FOOTBALL FIELD
Nielsen discussed proposed fees for lacrosse/football field at Badger Park. He stated for now, $50 per hour
would be in order.
Mangold asked how this compares to the weekly game night usage and are they going to be charged.
Nielsen stated the non-profits don’t pay that.
Mangold asked if the light fee would be an additional fee at $30 per hour or if it is included in the
reservation fee. Nielsen stated he needed to do more research. Mangold suggested tabling this item. He
indicated he would prefer keeping the lighting fee as a separate fee. Mangold discussed his concerns about
cancelled games where the lighting remains on. Nielsen stated this would need to be resolved somehow.
PARK COMMISSION MINUTES
TUESDAY, OCTOBER 25, 2016
4
PAGE 3 OF
Vassar suggested hourly rates be charged for rink usage rather than a daily charge. Nielsen stated he
would like to do more research on this.
REVIEW PLAYGROUND EQUIPMENT LIST
7.
Mangold discussed whether we need the same level of playground equipment in every park. He stated we
have a large enough park system where we can be versatile. He stated he sees Badger as the top priority
for equipment.
Barr asked what the difference would be between a tot lot and a playground. Mangold stated a tot lot is for
younger children.
Commissioners discussed ranking playground replacement in the city’s parks. They agreed Freeman South
would be the second priority followed by Cathcart. Silverwood would be fourth and Freeman North would
be fifth followed by Manor Park.
Mangold stated playground structure goals have been the same for all the parks, and he didn’t agree they
need to be that way in the future. He asked if the major set be in Badger or Freeman. What we do in
Badger would dictate what would be done at other parks. Nielsen didn’t think Badger would be the
destination for a larger set. He believed Freeman would be a better choice for a destination playground.
Mangold believed it would be in Freeman North. Barr asked if two playgrounds are needed in Freeman.
Mangold stated the shelter at Freeman is the top rental space. He would prefer scaling down the south
equipment. Vassar stated the equipment should be the same age range at both locations in Freeman.
Mangold believed it was a large enough park for two sets of equipment. Nielsen suggested having
equipment companies come in. He stated another option would be to request proposals for various age
ranges and uses.
Commissioners discussed equipment in Badger Park. Mangold asked if it should be bigger than what is
generally there. Vassar stated it should. He asked if there were anticipated lacrosse camps planned which
would generate users.
Commissioners agreed the equipment at Manor and Cathcart do not need to be addressed at this time.
Mangold stated the next phase is to get someone to come in and talk to us about equipment choices for
Badger Park.
8. NEW BUSINESS
9. STAFF AND LIAISON REPORTS/UPDATES
A. City Council
B. Staff
Commissioners and staff discussed the status of the skate park and the Park CIP. Nielsen discussed the
status of the work on the lacrosse/football field at Badger Park.
PARK COMMISSION MINUTES
TUESDAY, OCTOBER 25, 2016
4
PAGE 4 OF
Mangold asked what Public Works plan will be for maintenance of the field. Nielsen stated the
contractor will be providing training. Mangold stated it should be a priority for Public Works to take
care of this investment.
10. ADJOURN
Barr moved, Vassar seconded, to adjourn the Park Commission Meeting of October 25, 2016 at 8:22
p.m. Motion carried 3-0.
RESPECTFULLY SUBMITTED,
Clare T. Link
Recorder
#7B
MEETING TYPE
City of Shorewood Council Meeting Item
Regular Meeting
Title / Subject: Freeman Park Ice Skating Rink
Meeting Date: 14 November 2016
Prepared by: Brad Nielsen
Reviewed by: Patti Helgesen
Policy Consideration: Should the City construct an ice skating rink at Freeman Park?
Background: For the past few years, as discussions have progressed regarding the redevelopment of
Badger Park, one of the items that keeps arising is the replacement of the skating facilities being lost at
Badger. The Park Commission has reviewed several concepts during this time and concluded that
replacement skating should located in Freeman Park. Eddy Station, after all, was originally designed as a
warming house. Most recently, the Commission agreed that a reduced-size hockey rink, with portable
boards, could be located across the north end of the north parking lot at Freeman. While unrealistic to
obtain and install the portable boards for this season, the Commission would like to establish some sort
of ice skating presence at the park to get people used to coming to that location.
At their 25 October meeting the Commission voted to recommend that the City Council approve
expenditure of funds to grade and level the north end of the parking lot and install lighting for free
skating. The Commission would follow up next year with a proposal to install a portable hockey rink
there. Staff has obtained a quote and a commitment from Prehall Electric to relocate and install the
lights formerly located at the Badger hockey/skating rink. Mr. Prehall is prepared to begin work upon
Council’s approval of the work. We are also working to get a grading contractor to grade and level the
parking lot. Finally, the Building Official has obtained a quote from a local contractor to build the
necessary partition walls for the warming house. If the weather holds and the Council approves the
Park Commission’s recommendation, we may be able to have skating available for the upcoming season.
Financial or Budget Considerations: The Commission voted to approve the work, not to exceed
$40,000, based on the following quotes and estimates of cost:
Relocation/installation of lights $25,000
Grading and leveling of parking lot 9,000
Soil tests 2,000
Removable partition walls 1,000
$37,000
Options: Approve the work and direct staff to proceed; reject the Commission’s recommendation; or do
nothing.
Recommendation / Action Requested: Staff recommends approval of the project, not to exceed
$40,000.
th
Next Steps and Timelines: The electrical contractor is scheduled to begin work on the 15, the grading
contractor and the carpenter are available to complete work by early December.
#9A
MEETING TYPE
City of Shorewood Council Meeting Item
Regular Meeting
Title / Subject: Resolution Accepting Quotes and Award of Construction Contract for the
Public Works Ravine Restoration Project and Smithtown Road Storm Sewer Extension,
City Project 16-10
Meeting Date: September 14, 2016
Prepared by: Paul Hornby, City Engineer
Reviewed by:
Attachments: Resolution Accepting Quotes and Awarding Contract
Background: The Public Works Ravine Restoration Project and Smithtown Road Storm Sewer Extension
Project provides improvements to alleviate existing erosion issues within the drainage ravine located at
the City Public Works facility and within the drainage ditch along the north side of Smithtown Road west
of Star Lane.
The following improvements have been proposed within the Public Works ravine:
Installation of storm sewer pipe from the existing outlet to the storm water pond
Utilize stockpile material located at the Public Works Facility to fill the existing ravine
Erosion control and establishment of vegetation
The following improvements have been proposed within the Smithtown Road Storm Sewer Extension:
Extension of storm sewer pipe from the existing outlet on the west side of Star Lane
Utilize stockpile material located at the Public Works Facility to fill the existing ditch and
regrade a minor swale over top the newly installed storm sewer
Erosion control and establishment of vegetation
The City will receive quotes on Thursday, November 10, 2016, and WSB will prepare a tabulation of
quotes for the project and provide a bid results letter with recommendation for awarding the project to
the Council on Monday, November 14, 2016.
Financial or Budget Considerations: Costs associated with the Public Works Ravine Restoration Project
and Smithtown Road Storm Sewer Extension, City Project 16-10, will be funded though City maintenance
and stormwater funds.
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
Options:
1.Approve the resolution accepting quotes and awarding the contract to the lowest responsible
and responsive quote for the Public Works Ravine Restoration Project and Smithtown Road
Storm Sewer Extension, City Project 16-10.
2.Reject all quotes for the Public Works Ravine Restoration Project and Smithtown Road Storm
Sewer Extension, City Project 16-10.
3.Take no action on this item at this time.
A Resolution will be provided to the Council on November 14, 2016, with the quote award
recommendation letter from WSB. A draft Resolution is included with this agenda item for Council
reference.
Recommendation / Action Requested: Staff recommends Council approve Resolution 16-___ ,
Accepting Quotes and Awarding the Construction Contract for the lowest responsive quote received, to
___(Company)__________________, for the Public Works Ravine Restoration Project and Smithtown
Road Storm Sewer Extension, City Project 16-10.
CITY OF SHOREWOOD
RESOLUTION NO. 16-____
A RESOLUTION ACCEPTING QUOTES AND AWARDING CONTRACT FOR
THE PUBLIC WORKS RAVINE PROJECT AND SMITHTOWN ROAD STORM
SEWER EXTENSION
CITY PROJECT 16-10
WHEREAS
, pursuant to an invitation to provide quotes for local improvements
designated as the Public Works Ravine Restoration Project and Smithtown Road Storm
Sewer Extension, City Project 16-10, quotes were received, opened on November 10,
2016, and tabulated according to law; and
WHEREAS,
the City Council has determined that is
___(Company)________________
the lowest quote in compliance with the quote documents.
NOW, THEREFORE, BE IT RESOLVED,
by the City Council of the City of
Shorewood as follows:
1. That the Mayor and City Clerk are hereby authorized and directed to enter
into a contract with in the name of the City of
___(Company)__________________,
Shorewood, Project No. 16-10, according to the plans and specifications therefore
approved by the City Council on file in the office of the City Clerk.
2. That the City Clerk is hereby authorized and directed to return forthwith to
all contractors providing quotes the deposits made with their quotes, except for the
deposits of the successful quote and the next two lowest quotes, which shall be retained
until a contract has been signed.
ADOPTED BY THE CITY COUNCILOF THE CITY OF SHOREWOOD
this 14th day of November, 2016.
_____________________________
Scott Zerby, Mayor
ATTEST:
_________________________________
Jean Panchyshyn, City Clerk
November 14, 2016
Honorable Mayor and Council Members
City of Shorewood
5755 Country Club Road
Shorewood, MN 55331
Re: Public Works Ravine Restoration Project and
Smithtown Road Storm Sewer Extension and Improvements Project and Appurtenant Work
City of Shorewood, MN
WSB Project No. 2925 -18
Honorable Mayor and Council Members:
Four quotes were received for the above - referenced project on Thursday, November 10, 2016. The
quotes were.checked for mathematical accuracy and tabulated. Enclosed is the tabulation of quotes with
the lowest quote as submitted by Kusske Construction Company LLC, of Chaska, Minnesota.
We recommend that the City Council review the quotes received and choose from the following options:
1. Award Schedule A — Smithtown Road Ditch Improvements only to Kusske Construction Company
LLC in the amount of $27,265.50
2. Award Schedule B — Public Works Ravine Improvements only to Kusske Construction Company
LLC in the amount of $71,582.50
3. Award the total quote package to Kusske Construction Company LLC in the amount of
$98,848.00
4. Reject all quotes
Please contact me if you have any questions.
Sincerely,
WSB & Associates, Inc.
Paul Hornby, PE
Associate
Enclosures
kkp
Building a legacy -- your legacy.
Equal Opportunity Employer I wsbeng.com
KA0292 5- 1 8 0 \Admin \Construction Admin \2925 -18 LTR hmcc111416.docx
PROJECT:
Public Works Ravine Restoration
Smithtown Road Storm Sewer Extension and Improvements Project and
Appurtenant Work
OWNER:
City of Shorewood, MN
WSB PROJECT NO.:
2925 -18
Quotes Received: Thursday, November 10, 2016 at 10:00 am
Contractor
TOTAL SCHEDULE A
Smithtown Road Ditch
Improvements
TOTAL SCHEDULE B
Public Works Ravine
Improvements
GRAND TOTAL BID
1 Kusske Construction, Inc.
$27,265.50
$71,582.50
$98,848.00
2 Minger Construction, Inc.
$38,739.00
$71,957.50
$110,696.50
3 Widmer Construction, LLC
$41,979.50
$77,766.00
$119,745.50
4 G.F. Jedlicki, Inc.
$40,450.00
$119,888.00
$160,338.00
I hereby certify that this is a true and correct tabulation of the bids as received on November 10, 2016.
Denotes corrected figure
Paul Hornbe, PE Sr. Pr sect Man
M02925- 180WdminlConstrucdon Adminl2925 -18 Bid Summary 111016
CITY OF SHOREWOOD
RESOLUTION NO. 16 -087
A RESOLUTION ACCEPTING QUOTES AND AWARDING CONTRACT FOR
THE PUBLIC WORKS RAVINE PROJECT AND SMITHTOWN ROAD STORM
SEWER EXTENSION
CITY PROJECT 16 -10
WHEREAS, pursuant to an invitation to provide quotes for local improvements
designated as the Public Works Ravine Restoration Project and Smithtown Road Storm
Sewer Extension, City Project 16 -10, quotes were received, opened on November 10,
2016, and tabulated according to law; and
WHEREAS, the City Council has determined that Kusske Construction Inc. is
the lowest quote in compliance with the quote documents.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of
Shorewood as follows:
1. That the Mayor and City Clerk are hereby authorized and directed to enter
into a contract with Kusske Construction Inc. in the name of the City of Shorewood,
Project No. 16 -10, according to the plans and specifications therefore approved by the
City Council on file in the office of the City Clerk.
2. That the City Clerk is hereby authorized and directed to return forthwith to
all contractors providing quotes the deposits made with their quotes, except for the
deposits of the successful quote and the next two lowest quotes, which shall be retained
until a contract has been signed.
ADOPTED BY THE CITY COUNCIL OF THE CITY OF SHOREWOOD
this 14th day of November, 2016.
Scott Zerby, Mayor
ATTEST:
Jean Panchyshyn, City Clerk
#9B
MEETING TYPE
City of Shorewood Council Meeting Item
Regular Meeting
Title / Subject: Resolution Accepting Bids and Award of Construction Contract for the
Freeman Park Ice Skating Rink Project
Meeting Date: September 14, 2016
Prepared by: Paul Hornby, City Engineer
Reviewed by:
Attachments: Resolution Accepting Quotes and Awarding Contract
Background: The Freeman Park Ice Skating Rink Project provides improvements within the existing north
parking lot adjacent to Eddy Station. The skating rink will be located at the north end of the parking lot
and will include the removal of a select number of bollards, installation and grading of aggregate base to
provide a flat surface, and restoration as necessary to accommodate the proposed skating rink.
The City will receive quotes on Monday, November 14, 2016, and WSB will prepare a tabulation of
quotes for the project and provide a quote results letter with recommendation for awarding the project
to the Council on Monday, November 14, 2016.
Financial or Budget Considerations: Costs associated with the Freeman Park Skating Rink Project will be
funded though City park funds.
Options:
1.Approve the resolution accepting quotes and awarding the contract to the lowest responsible
and responsive quote for the Freeman Park Skating Rink Project.
2.Reject all quotes for the Freeman Park Skating Rink Project.
3.Take no action on this item at this time.
A Resolution will be provided to the Council on November 14, 2016, with the quote award
recommendation letter from WSB. A draft Resolution is included with this agenda item for Council
reference.
Recommendation / Action Requested: Staff recommends Council approve Resolution 16-___ ,
Accepting Quotes and Awarding the Construction Contract for the lowest responsive quote received, to
___(Company)__________________, for the Freeman Park Skating Rink Project.
Mission Statement: The City of Shorewood is committed to providing residents quality public services, a
healthy environment, a variety of attractive amenities, a sustainable tax base, and sound financial
management through effective, efficient, and visionary leadership. Page 1
CITY OF SHOREWOOD
RESOLUTION NO. 16-____
A RESOLUTION ACCEPTING QUOTES AND AWARDING CONTRACT FOR
THE FREEMAN PARK ICE SKATING RINK PROJECT
WHEREAS
, pursuant to an invitation to provide quotes for local improvements
designated as the Freeman Park Ice Rink Project, quotes were received, opened on
November 14, 2016, and tabulated according to law; and
WHEREAS,
the City Council has determined that is
___(Company)________________
the lowest quote in compliance with the quote documents.
NOW, THEREFORE, BE IT RESOLVED,
by the City Council of the City of
Shorewood as follows:
1. That the Mayor and City Clerk are hereby authorized and directed to enter
into a contract with in the name of the City of
___(Company)__________________,
Shorewood, according to the plans and specifications therefore approved by the City
Council on file in the office of the City Clerk.
2. That the City Clerk is hereby authorized and directed to return forthwith to
all contractors providing quotes the deposits made with their quotes, except for the
deposits of the successful quote and the next two lowest quotes, which shall be retained
until a contract has been signed.
ADOPTED BY THE CITY COUNCILOF THE CITY OF SHOREWOOD
this 14th day of November, 2016.
_____________________________
Scott Zerby, Mayor
ATTEST:
_________________________________
Jean Panchyshyn, City Clerk
Lkr A("+ 6
,r
477 Temperance Street I St. Paul, MN 55101 i (651) 286 -8450
November 14, 2016
Honorable Mayor and Council Members
City of Shorewood
5755 Country Club Road
Shorewood, MN 55331
Re: Freeman Park Ice Rink Project
City of Shorewood, MN
WSB Project No. 2925 -14
Honorable Mayor and Council Members:
One quote was received for the above - referenced project on Monday, November 14, 2016. The quote
was checked for mathematical accuracy and tabulated. Enclosed is the tabulation of the quote as
submitted by Barber Construction Co., Inc., of St. Bonifacius, Minnesota.
We recommend that the City Council review the quotes received and choose from the following options:
1. Award the quote package to Barber Construction Co., Inc., in the amount of $18,950.00
2. Reject all quotes
Please contact me if you have any questions.
Sincerely,
WSB & Associates, Inc.
Paul Hornby, PE
Associate
Enclosures
kkp
Building a legacy — your legacy.
Equal Opportunity Employer I wsbeng. Corn
KA02925- 140 \Freeman Park Skating Rink \2925 -18 LTR hmcc111416.dou
RESOLUTION NO. 16 -088
A RESOLUTION ACCEPTING QUOTES AND AWARDING CONTRACT FOR
THE FREEMAN PARK ICE SKATING RINK PROJECT
WHEREAS, pursuant to an invitation to provide quotes for local improvements
designated as the Freeman Park Ice Rink Project, quotes were received, opened on
November 14, 2016, and tabulated according to law; and
WHEREAS, the City Council has determined that Barber Construction Inc. is the
lowest quote in compliance with the quote documents.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of
Shorewood as follows:
1. That the Mayor and City Clerk are hereby authorized and directed to enter
into a contract with Barber Construction Inc. in the name of the City of Shorewood,
according to the plans and specifications therefore approved by the City Council on file in
the office of the City Clerk.
2. That the City Clerk is hereby authorized and directed to return forthwith to
all contractors providing quotes the deposits made with their quotes, except for the
deposits of the successful quote and the next two lowest quotes, which shall be retained
until a contract has been signed.
ADOPTED BY THE CITY COUNCIL OF THE CITY OF SHOREWOOD
this 14th day of November, 2016.
Scott Zerby, Mayor
Jean Panchyshyn, City Clerk
#9C
MEETING TYPE
City of Shorewood Council Meeting Item
Regular Meeting
Title / Subject: Accept Proposal for Professional Services - Geotechnical Exploration and
Evaluation for Freeman Park Skate Rink Light Poles
Meeting Date: November 14, 2016
Prepared by: Paul Hornby, City Engineer
Reviewed by:
Attachments Proposal for Professional Services from AET
Policy Consideration: Should the City Council enter into a contract with AET (American
Engineering Testing, Inc.) to perform geotechnical exploration and evaluation (soil borings and
report) for the Freeman Park skate rink?
Background: The Park Commission has made a recommendation to install a skate rink at
Freeman Park. The skate rink is proposed as general skating within the north area of the
existing north parking lot. Staff has requested bids from contractors to grate the north end of
the north parking lot for a 50 foot wide and 100 foot long rink that Council will consider for
award November 14, 2016, under separate agenda item. Lighting of the skate rink is proposed
by installing lights salvaged from Badger Park. The proposed geotechnical consulting work is to
evaluate the foundation needs of the light poles to ensure the soils can withstand the loading.
Tasks for the project include project management, soil field work, drilling two 20 foot deep
borings, soil sample laboratory testing, and preparation of a report with recommendations for
foundation design.
Financial Considerations: AET proposes to perform the scope of work for an amount not to
exceed $3,300. Fees for this work will be paid through the park fund.
Options:
1.Accept the proposal, as presented.
2.Reject the proposal and provide staff with alternative direction.
Recommendation: Staff is recommending that a motion accepting the proposal from AET be
accepted by Council.
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
CONSULTANTS
·ENVIRONMENTAL
·GEOTECHNICAL
·MATERIALS
·FORENSICS
November 8, 2016
City of Shorewood
5755 Country Club Road
Shorewood, Minnesota 55331
Attn: Mr. Paul Hornby – City Engineer
RE: Proposal for Geotechnical Services
Freeman Park Light Pole Towers
Shorewood, Minnesota
AET Proposal No. 20-15069
Dear Mr. Hornby:
We are pleased to submit a proposal for this project. In this proposal, we present a description of
our understanding of the project, an outline of the scope of services we are to provide, a fee
schedule, and estimated charges for these services.
Purpose of Study
The purpose of these geotechnical services is to explore the subsurface conditions at the site, and
based on our characterization of the obtained data, to prepare a geotechnical engineering report
presenting comments and recommendations to assist you and your project team in planning and
construction.
Project Description
The City of Shorewood (City) is proposing to construct a new skating rink in Freeman Park. As
part of the new construction, new light pole towers are planned. The City has requested a
geotechnical exploration program be performed to evaluate the onsite soils for support of the
new light pole towers.
Scope of Services
Per the emailed request for proposal, we are submitting our fee proposal for the following scope.
This proposal is based on the requested boring locations and depths as indicated.
Field Services – Soil Borings
Locate the borings in the field based on locations selected by the City.
Arrange clearance of underground public utilities through the Gopher State One-Call
System. If there are private utilities in the area (which are not cleared by Gopher State),
550 Cleveland Avenue North | Saint Paul, MN 55114
Phone (651) 659-9001 | (800) 972-6364 | Fax (651) 659-1379 |www.amengtest.com |AA/EEO
This document shall not be reproduced, except in full, without written approval from American Engineering Testing, Inc.
City of Shorewood – Freeman Park Light Pole Towers
November 8, 2016
AET Proposal No. 20-15069
Page 2 of 3
we will need a representative from the City to clear such lines (or a private utility
subcontractor could be hired at an additional cost).
Perform two standard penetration test borings (ASTM: D1586) in the proposed light pole
areas to a depth of 20 feet.
Seal the boreholes per Minnesota Department of Health requirements.
Obtain surface elevations at each boring location based on provided/assumed
benchmarks.
We understand that the new skating rink will be located in an existing parking lot, and we are
planning to perform the borings with a truck-mounted drill rig.
If the borings encounter organic soils, we will review the boring information with you to
determine if additional drilling depths are required.
Soil Laboratory Testing
Our services will include mechanical laboratory testing of selected soil samples to aid in judging
engineering properties of the soils. In this proposal, we have budgeted $150 for geotechnical
laboratory testing, which includes moisture content testing of cohesive soils samples. If
conditions are encountered which indicate the laboratory program should be expanded for proper
evaluation, we will review the recommended tests and associated cost with you prior to
proceeding.
Engineering Report
Following the field and laboratory services, a formal engineering report will be prepared and
submitted. This report will include logs of the test borings, the laboratory test results, a review of
engineering properties of the on-site soils, and our geotechnical engineering opinions and
recommendations regarding the following:
Vertical bearing support (allowable bearing pressure) recommendation.
Review of frost uplift considerations.
Estimates of soil parameters for your foundation designer’s study of moment/lateral
resistance (density, cohesion, adhesion, and internal friction).
Comments on other items which may affect final performance or constructability, such as
frost heave and drainage considerations.
The scope of services defined in this proposal is intended for geostructural purposes only. This
scope is not intended to explore for the presence or extent of environmental contamination at the
site. However, we will note obvious contamination encountered which can be detected by human
sight or smell sensing.
2016GFS
EOTECHNICAL EE CHEDULE
I. Personnel Hourly Rates5. LPILE or GROUP 20.00/hr.
A. Word Processing Specialist 66.00/hr. 6. Slope Stability (ReSSA) 20.00/hr.
B. Engr. or Env. Technician I 72.00/hr. 7. Stabilized Earth Slopes & Walls 20.00/hr.
C. Engr. or Env. Technician II 85.00/hr. 8. Settlement (FoSSA) 20.00/hr.
D. Drill Technician/Geo Lab Technician 95.00/hr. 9. SHAFT 20.00/hr.
E. Senior Engineering Technician 101.00/hr. F. Bit Wear- Rock Coring
F. Engineering Assistant 111.00/hr. 1. Diamond Bit - Sedimentary Rock
G. Engineer I/Geologist I 120.00/hr. a) B, NQ 10.50/foot
H. Engineer II/Geologist II/Sr. Engr. Assistant 137.00/hr. b) HQ 12.50/foot
I. Senior Engineer/Geologist 153.00/hr. 2. Diamond Bit - Metamorphic & Igneous
J. Principal Engineer/Geologist 183.00/hr. a) B, NQ 17.50/foot
b) HQ 20.50/foot
II. Vehicle MileageIV. Laboratory Tests of Soil
A. Personal Automobile/Truck 0.75/mile A. Water Content hourly
B. Auxiliary Truck Vehicle 1.00/mile B. Dry Density (includes water content) 57.00/test
C. Truck with Coring, FWD, or GPR Equipment 1.10/mile C. Atterberg Limits (ASTM:D4318)
D. Truck with Warning Sign/Crash Trailer 1.20/mile 1. Plasticity Index 110.00/test
E. 1-ton Truck with Drill Rig 1.20/mile 2. Liquid Limit or Plastic Limit Separately 95.00/test
F. 1½ to 2½-ton Truck with Drill Rig 1.35/mile D. Sieve Analysis (includes -#200) 102.00/test
G. CPT Truck Rig (20-ton push capacity) 1.60/mile E. Hydrometer Analysis (sieve included) 197.00/test
H. Tractor/Lowboy Trailer 1.80/mile F. Thermal Resistivity w/Proctor (ASTM:D5334)
1. As Received and Oven Dried (2 pts) 995.00/test
III.Equipment Rental2. Dry Out Curve (4 pts) 1235.00/test
A. Drill Rig Rental G. Electrical Resistivity (ASTM:G57-Soil Box) 100.00/test
1. Rotary Drill on 1-ton Truck 72.00/hr. H. Corrosion/Concrete Attack Series* price upon request
2. Rotary Drill on 1½ to 2½-ton Truck 82.00/hr. I. Consolidation (up to 32 tsf)
3. Rotary Drill on All-Terrain Vehicle 112.00/hr. 1. With P-e curves only 475.00/test
4. Portable, Non-rotary Rig 82.00/hr. 2. With P-e curves, time curves 600.00/test
B. Auxiliary/Specialty Vehicle Rental I. Unconfined Compression (incl. wc/density) 95.00/test
1. Auxiliary Truck Vehicle 17.50/hr. J. Hand Penetrometer 10.00/test
2. Truck with Warning Sign/Crash Trailer 29.00/hr. K. Organic Content of Soil 65.00/test
3. Truck with Coring Equipment 45.00/hr. L. Topsoil Borrow Test (Mn/DOT 3877) 295.00/test
C. Cone (CPT) Rig/Equipment Rental M. R-value (Hveem Stabilometer) 388.00/test
1. CPT Rig (Truck or ATV) 145.00/hr. N. California Bearing Ratio
2. Electronic Cone w/Computer 43.00/hr. 1. Granular 625.00/test
3. Soil Sampler 4.00/hr. 2. Cohesive 710.00/test
4. Water Sampler 20.50/hr. O. Proctor Tests (Methods A or B)
D. Miscellaneous Equipment Rental 1. Standard 130.00/test
1. Field Vane Shear 325.00/day 2. Modified 140.00/test
2. Field Electrical Resistivity 250.00/day *includes pH, chloride ion, soluble sulfates, sulfides,
3. Field Seismic Shear Wave (ReMi) 425.00/day redox potential (resistivity not included).
4. Inclinometer Reading Equipment 335.00/day
5. Electronic Transducer Reading 175.00/day V. Expenses
6. Bore Hole Permeability A. Direct Project Expenses: includes out-of- Cost + 15%
a. Open End Casing Method 135.00/day town per diem; plowing & towing; special
b. HQ Wireline Packer 330.00/day materials & supplies; special travel,
7. Borehole Pressuremeter 70.00/hr. transportation & freight; subcontracted
8. Iowa Borehole Shear Tester 335.00/day services, and miscellaneous costs
9. Double Ring Infiltrometer 265.00/day B. Equipment Replacement (when abandonment Cost
10. Photoionization Detector (PID) 115.00/day is more feasible than recovery)
11. GPS Mapping System 15.50/hr. C. Equipment Recovery (when required by Cost + 15%
12. Pile Driving Analyzer (PDA) 750.00/day regulatory agencies or project specifications)
13. Calibrated SPT Rod 225.00/day
14. Pile Integrity Test (PIT) 350.00/day The rates presented are portal-to-portal with vehicle mileage, expenses
15. Portable Concrete Coring Equipment 45.00/hr. and equipment rentals being additional.
16. Pavement Testing Equipment (includes truck)
a. Falling Weight Deflectometer 150.00/hr. Overtime for personnel charged at above cost plus 25% for over 8
b. Ground Penetrating Radar (GPR) 350.00/day. hours per day or Saturday; and at above cost plus 50% for Sundays or
E. Geotechnical Software Rental Holidays. Hazardous work charged at an additional 25%. Night time
1. Geo Studio Finite Element 60.00/hr. shift work will include a premium charge of $30.00 per person per
2. CAPWAP 35.00/hr. shift.
3. AutoCAD or Microstation 30.00/hr.
4. Wave Equation (WEAP) 20.00/hr.
AMERICAN ENGINEERING TESTING, INC.
01DPM021.16 (01/16)
#9D
MEETING TYPE
City of Shorewood Council Meeting Item
Regular Meeting
Title / Subject: 2016 Trunk Watermain Extension (Oppidan) Project, City Project 16-04
Resolution Approving Change Order 1
Meeting Date: November 14, 2016
Prepared by: Paul Hornby
Reviewed by:
Attachments: Change Order 1 and Resolution Approving Change Order 1.
Background:
On September 26, 2016, the City Council accepted bids and awarded the 2016 Trunk Watermain
Extension Project to Widmer Construction LLC. During the progression of construction it was realized
that traces of geotextile material was present between the lifts of existing bituminous pavement. As a
result, the existing pavement was considered contaminated requiring additional trucking to dispose of
the material appropriately. Additionally, during watermain service installation, an additional tree
needed to be removed due to the location of other utilities. Due to the size of the tree, additional work
was necessary to clear and grub the tree outside of the original clearing and grubbing scope of work.
Widmer Construction LLC. has submitted a change order detailing the additional work items which have
been reviewed by staff with regard to the work scope and additional costs, and recommend approval.
Financial or Budget Considerations:
The project construction contract as bid was awarded by the Council in the amount of $1,102,856.13.
$21,293.25
The total for Change Order 1 is .
$1,124,149.38
This additional work item will increase the contract amount to , approximately 1.9%.
Recommendation / Action Requested:
Staff recommends approval of the enclosed Resolution 16- Approving Change Order 1. Payment
for this work order will be made under a future payment request 2.
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
K:\02925-160\Admin\Construction Admin\Change Orders\
2925-16 CO1 111416CO 1
K:\02925-160\Admin\Construction Admin\Change Orders\
2925-16 CO1 111416CO 1 Detail
CITY OF SHOREWOOD
RESOLUTION NO. 16 -___
A RESOLUTION APPROVING CHANGE ORDER 1 FOR
THE 2016 TRUNK WATERMAIN EXTENSION PROJECT
CITY PROJECT 16-04
WHEREAS
, THE City of Shorewood Council awarded the contract for the 2016
Trunk Watermain Extension Project to Widmer Construction LLC. of Maple Plain,
Minnesota; and
WHEREAS,
Change Order 1 is necessary to construct the improvements and
associated work; and
WHEREAS,
Change Order 1 will increase the project construction costs in the
amount of $21,293.25, from the original contract amount of $1,102,856.13 to
$1,124,149.38;
NOW, THEREFORE, BE IT RESOLVED,
by the City Council of the City of
Shorewood as follows:
1. Change Order 1 in the total amount of $21,293.25 is hereby approved.
ADOPTED BY THE CITY COUNCILOF THE CITY OF SHOREWOOD
th
this 14 day of November, 2016.
__________________________
ATTEST: Scott Zerby, Mayor
______________________
Jean Panchyshyn, City Clerk
#10A
MEMORANDUM
TO: Mayor and City Council
FROM: Tim Keane, City Attorney
DATE: November 10, 2016
RE: Irey Enforcement Appeal – City Council Meeting of November 14, 2016
26040 Wild Rose Lane
This administrative hearing arose out of the appeal of the issuance of zoning violations
and a citation dated May 20, 2016, to the owners Quentin and Rebecca Irey (“Property Owner”).
The Property Owner was cited for the commercial use of their property located at 26040 Wild
Rose Lane (“Subject Property”) in a single family residential zoning district and the rental of
their property without a rental housing license as required by the City of Shorewood (“City”).
The city conducted two days of hearings in this matter.
Irey presently appeals the decision of the Administrative Hearing Officer to the City
Council. Attached please find the Findings of Fact, Conclusions and Decision of Hearing
Officer Peter Beck. Also find enclosed the written appeal of the Hearing Officer’s
determination. Below is a summary of the issues presented to the Administrative Hearing
Officer.
Rental Housing License Violation. The Shorewood Code of Ordinances Chapter 1004
requires the owner of residential property used for rental housing to first obtain a residential
rental housing license. City Code Section 1004.03, subd. 1. It was undisputed at the hearing that
the Subject Property was being rented and “sublet” by the Property Owner at the time of the
citation. There was no evidence offered into the record by the Property Owner that a rental
license had been issued for the Subject Property at the time of the violation.
Commercial Use of the Property. There was extensive testimony and evidence offered by
the City in support of the violation citation relating to the commercial use of the Subject
Property. The City argued at the hearing that the short term rental of the Subject Property was a
commercial use, not a residential use. In support, the City offered evidence which included but
was not limited to the following:
Lodging. At hearing, the City argued the use of the Subject Property satisfied the
definition of Lodging House as provided in the definitions of the Shorewood Code of
Ordinances at City Code Section 1201.02.
(b) Advertising. The City offered extensive evidence of the marketing efforts
for short term rental of the Subject Property to groups for reunions, events, seminars,
conferences, training, retreat, weddings and other group events for both business and
recreational purposes.
4826-9018-2969.1
(c) Agency Business Relationship. Scott Owens testified on behalf of the
Property Owner that he and his wife Jenna were responsible for “subletting” the Subject
Property throughout the year for a minimum three day stay to groups of various sizes,
purposes and affiliations. While allegedly a tenant, Owens had a contractual relationship
with the Property Owner intended to provide short term rental activity while serving as
the “front desk of the hotel” for all related rental and management activities.
(d) Sales and Use Taxes. The Owens subletting agreements and testimony
provided for the collection of sales and use taxes by “renters” which are required for
lodging but not residential rental. Minn. Dept. of Revenue Fact Sheet No. 141.
(e) Lease Arrangement with Property Owner. The Owens testimony and the
lease agreement between Owens and the Property Owner was more in the nature of a
business relationship related to the Subject Property and revenue rather than the
residential occupancy of the Subject Property.
Action Requested
The City Council is now presented with the appeal of the Hearing Officer’s decision
based upon the evidence and testimony in the hearings conducted. The council is requested 1) to
affirm the decision of the Hearing Officer; or 2) reverse the decision with new findings. Staff
accepted all written arguments and submittals including in this matter and advised Irey the oral
presentation to the council should be limited to 10 minutes. The council may access all
documents in the extensive record via the link connected to this agenda item.
cc: Greg Lerud, City Administrator
Brad Nielsen, Planning Director
2
4826-9018-2969.1
In the Matter of the Notice of Zoning Violationsand Citation
dated May20, 2016, issued by the City of Shorewoodto
Quentin and Rebecca Irey
regarding Zoning and Rental Housing Code Violations
at the property located at 26040 Wild Rose Lane
FINDINGS OFFACT, CONCLUSIONS AND
DECISION OF THE HEARING OFFICER
FINDINGS OF FACT
History
1.Quentin and Rebecca Irey (the “Ireys”) are the owners of the property located at 26040
Wild Rose Lane (the “Property”) in the City of Shorewood, Minnesota(“City”) and at one
time resided at the Property.
2.Sometime prior to the fall of 2015, the Ireys relocated to Hutto, Texas, where they are now
permanent residents.
3.On October25, 2015, the Ireys entered into a rental agreement with Scott and Jennifer
Owens (the “Owens”) with respect to the Property.
4.The rental agreementprovides, in part:
That the Owens will rent the Property from the Ireys on a continuous basis for a
minimum of $1.00 per month.
That the Owens will sublet the Property for certain periods of time, and pay the Ireys
rent for those periods of time based on net bookings above a basis rent, with the total
rental amount above the basis rent to be split on a 50/50 basis between the Ireys and
Owens.
That sales tax willbe deducted from rental amounts and accounted for and paid by
Owens.
That cleaning fees willbe deducted from rental amounts.
That Owens will be responsible for all marketing and advertising expenses, including
website listing, additional advertising, maintaining relationships with third-party
booking sites, telephone and email answering and response, etc.
5.Sometime between October and December of 2015, the Owens began advertising the
Property for short-term rental on several internet sites, including Airbnb.
6.Advertisements included in ExhibitDidentifiedthe Property as a large space for “your
family reunion, event, seminar, conference, training, retreat,” and that the Property has a
meeting room which can “easily fit 20-28”and “can be arranged for dining service.”
7.Sometime between October and December of 2015, Owens began subletting the Property
for rental periods as short as two (2) days.
8.Owens’ correspondence with subtenants and the short-term rental agreement between
Owens and subtenants encourages subtenants to think of Owens as “the front desk of a
hotel,” and provides for:
booking of the Property;
payment by subtenants of sales and hospitality taxes, and cleaning and linen fees;
commencement of the short-term rental agreement at 4:00p.m. on the “Check-In
Date,” and termination of the short-term rental agreement at 10:00a.m. on the
“Checkout Date”; and
recommends that renters purchase “travel insurance.”
9.Between December 2015 and August 2016, Owens rented the Property to at least thirty-
one (31) groups for rental periods as follows:
Six (6) rentals for two (2) days;
Twelve (12) rentals for three (3) days;
Seven (7) rentals for four (4) days;
Two (2) rentals for five (5) days;
Two (2) rentals for six (6) days;
One (1) rental for seven (7) days; and
One (1) rental for nine (9) days.
10.As evidenced by internet comments included in ExhibitD, and acknowledged by
Mr.Owens during his testimony,a number of these rentals were for business meetings and
retreats.
11.On or about December18, 2015, the Ireys,or their representative,applied for a rental
dwelling license for the Property. On or about December18, 2015, Joe Pazandak, City
Inspector, inspected the Property for the purpose of issuing a rental dwelling license.
Mr.Pazandak’s report identified a number of rental licensing inspection items to be
addressed. No rental dwelling license was issued at this time.
2
12.On or about March14, 2016, Mr.Pazandak, at the request of Mr.Owens, conducted a
follow-up inspection of the Property. Mr.Pazandak’s Inspection Noticefrom this
inspection (ExhibitF) identified a number of rental licensing inspection items to be
addressed,and concluded: “Correct items listed above and arrange re-inspection.” No
rental license was issued at this time.
13.On or about August17, 2016, Mr.Pazandak conducted a third inspection of the Property.
Mr.Pazandak’s Inspection Notice from this inspection (ExhibitH) identifies rental
licensing inspection items to be addressed,and concludes: “Correct items listed above and
arrange re-inspection.”
14.As of the date of the Hearing,and on May20, 2016, no rental license had been issued for
the Property.
15.As of the date of the Hearing,and on May20, 2016, the rental agreement between the Ireys,
as owner, and Owens, as tenant, remainedin effect.
16.As of the date of the Hearing, and on May20, 2016, advertising of the Property for short-
term rentals, and rental of the Property for short-term stays,continued.
17.On May20, 2016, the City addressed a Notice of Zoning Violations and Citation
(“Notice”) to the Ireys at the Property. (ExhibitA) The Notice imposed a $300
Administrative Penalty for the following Zoning and Rental Housing Code violations:
(1)Commercial Use of the Property; and
(2)Rental of the Property without a Rental License.
18.On June2, 2016, the City received an Administrative Enforcement Appeal signed by
Quentin Ireyappealing the Notice.(ExhibitB)
19.By agreement of the parties, an Administrative Hearing (“Hearing”) on the Appeal was
scheduled and held at Shorewood City Hall beginning on August10, 2016, and continuing
on August23, 2016.
20.During the Hearing, the following exhibits were offered, and accepted, into evidence:
ExhibitA:Noticeof Zoning Violations and Citation, including Certified Mail Receipt and
photos of the Property.
ExhibitB:Administrative Enforcement Appeal, including letter dated May29, 2016, from
Quentin Irey.
ExhibitC:Consisting of a collection of emails, correspondence and pictures received from
residents in the neighborhood of the Property.
ExhibitD:Acollection of pages from the internet which referencethe Propertyand which
were printed and submitted by the City.
3
ExhibitE: Excerpts from Chapter 1201 and Chapter 1004 of the City Code of Ordinances,
and the Zoning Map for the City.
ExhibitF: Copy of an Inspection Notice dated March14, 2016, with respect to the
Property, along with a South Lake Minnetonka Police Department Incident Report dated
June4, 2016, and emails from the South Lake Minnetonka Police Department dated June4
and June7, 2016.
ExhibitG: Copy of June4, 2016, South Lake Minnetonka Police Department Incident
Report and June13, 2016, South Lake Minnetonka Police Department Incident Report.
ExhibitH: Copy of August17, 2016, Inspection Notice with respect to the Property,
including August23, 2016, response to this Inspection Notice, with attachments.
21.Following the Hearing, the following additional documents were submitted on behalf of
the Ireys and have been accepted into evidence:
(1)Rental Agreement between the Ireys and Jennifer Owens;
(2)The Standard Lease Agreement between the Owens and the subtenants of the
Property; and
(3)A list of the dates on which the Property has been rented to subtenants.
22.During the Hearing, testimony was received from the following witnesses:
(1)Brad Nielsen, Planning Director of the City.
(2)Bruce Johnson, the neighbor who lives on the west side of the Property.
(3)Joe Pazandak, City Inspector.
(4)Scott Owens, on behalf of the Ireys.
(5)Quentin Irey, ownerof the Property.
23.Following the Hearing, the Hearing Officerreceived a Letter Memorandum from counsel
for the City with attached proposed Findings of Fact, Conclusions of Law and Decision;
and a Closing Argument Letter from counsel for the Ireys.
CONCLUSIONS OF LAW
Jurisdiction
1.The City is authorized by City Code Sections1201.08, 1004.06, 104.02and 104.03 to
enforce the City Zoning and Rental Housing Ordinances, and to issue administrative
notices and citations for violations of those ordinances.
4
2.The May20, 2016, Notice of Zoning Violations and Citation was properly issued by the
Citypursuant to City Code Section 104.03, Subd.2.
3.The Notice is dated May20, 2016. The Ireys’ Appeal from the Notice is required by City
Code Section 104.03, Subd.3(a) to be postmarked within ten (10) days of May20, 2016,
or by May30, 2016.
4.The Administrative Enforcement Appeal was received by the City on June2, 2016.
5.Because there is no evidence as to the date the Administrative Enforcement Appeal was
postmarked, and the City has not objected to the timeliness of the Appeal, the Appeal is
determined to be timely and in compliance with the requirements of Section104.03
6.Because the Appeal is determined to be timely and in compliance with the Code
requirements, the matter is properly before the Hearing Officer. The issues to be decided
by the Hearing Officerare:
whether the Property hadbeen used for commercial purposeson or before May20,
2016; and
whether the Property hadbeen operated as a rental dwelling on or before May20, 2016,
without first having obtained a license to do so.
7.The Ireys have asked the Hearing Officerto order the City to issue the Ireys a rental housing
license if the Ireys meet the housing license requirements. The Hearing Officerconcludes
that this request is beyond the scope of the Notice and that the Hearing Officeris without
jurisdiction to grant the request. The Hearing Officers’ role isto determine if the City Code
provisions regarding rental licensing and use of the Property were complied with as of the
date of the Notice, May20, 2016.
8.The Hearing Officerdoes note, however, that Section1004.03,Subd.2, of the City Code
providesthat no rental license shall be issued or renewed unless the rental dwelling and its
premises conform to the Ordinances of the City and the laws of the state.
Failure to Obtain Rental Housing License
9.Section1004.03, Subd.1 of the City Code provides, in part: “No person shall operate a
rental dwelling without first having obtained a license to do so from the City Council as
hereinafter provided.”
10.The Property has operated as a rental dwelling since October25, 2015, and continued to
operate as a rental dwelling as of the date of the May20, 2016, Notice.
11.No rental dwelling license had been issued for the Property as of the date of the May20,
2016, Notice.
5
12.The Hearing Officerconcludes that, as of the date of the May20, 2016, Notice, the Property
was beingoperated as a rental dwelling without first having obtained a license to do soin
violation of City Code Section 1004.03, Subd.1.
Commercial Use
13.The Property is located in the R-1A Zoning District of the City.
14.Section1201.10,Subd.2, of the Zoning Ordinance identifies the permitted uses in the
R-1A Zoning District, which include single-family detached dwellings.
15.Section1201.01,Subd.6, of the Zoning Ordinance provides, in part: “Whenever in any
Zoning District a use is neither specifically permitted nor denied, the use shall be
considered prohibited.”
16.The Notice cites the Ireys for commercial use of the Property in the R-1A Single-Family
Residential Zoning District.
17.Section1201.02 of the Zoning Ordinance defines “commercial use” as: “The principal use
of land or buildings for the sale, lease, rental or trade of products, goods and services.”
18.The Hearing Officerconcludes, for the reasons set forth in the attached Memorandum, that
the use of the Property for continuous short-term rentals of as little as two (2) days for
events, seminars, conferences, training, retreats, or even wedding groups and family
reunions, is not a single-family residential use and constitutes the principal use of the land
or buildings for the sale, lease, rental or trade of products, goods and services.
19.TheHearing Officerconcludes that, as of the date of the May20, 2016, Notice, the Property
was being used for a commercial usein violation of Chapter1201 of the Zoning Ordinance.
6
DECISION
Based on ExhibitsA-H received intoevidence at the Hearing,the additional exhibits
submitted by the Ireys following the hearing, the testimony taken on August10 and August23,
2016,the applicable provisions of Chapters1004 and 1201, and Section104.03, of the City of
Shorewood Code of Ordinances, and the arguments made and submitted by the parties, the Hearing
Officer determines that as of May20, 2016, the Property was being used for a commercial use and
operated as a rental dwelling without first having obtained a license to do so, inviolation of the
City of Shorewood Zoning and Rental Housing Ordinances.
Therefore, the Hearing Officer upholds the May20, 2016, Citation and the $300 civil
penalty impose by the Citation.
Peter K. Beck, Administrative Hearing Officer
Pursuant to appointment of the Shorewood City Council
7
In the Matter of the Notice of Zoning Violations and Citation
dated May20, 2016, issued by the Cityof Shorewood to
Quentin and Rebecca Irey
regarding Zoning and Rental Housing Code Violations
at the property located at 26040 Wild Rose Lane
MEMORANDUM
The issues before the Hearing Officerin this matter are:
whether the Property was being put a commercial useon or before May20, 2016; and
whether the Property was being operated as a rental dwelling without first having
obtained a license to do so on or before May20, 2016.
The Hearing Officer’s responsibility is to resolve these issues based on application of the
applicable City Code provisions to the evidence received at the Hearing. All of the evidence
received, including exhibits accepted and testimony given, is only relevant, and has only been
considered,to the extent it goes to these two issues.
Counsel for the Ireys has expressed concern that evidence introducedby the City regarding
neighborhood complaints was offered to put political pressure on the Hearing Officer.However,
the Hearing Officeris not beholden to any resident of the City. The Hearing Officeris not a
resident or official of the City, and has been engaged solely to hear the Ireys’ Appeal from the
Notice.Testimony from neighboring residents, and exhibits received which incorporate
neighborhood comments, was allowed because it could go to the issue of whether the Property is
being put to a commercial, rather than a permitted single-family, use,and whether the Property
was being operated as a rental dwelling. This evidence was considered, like all of the other
evidencereceived, only to the extent that it goes to those two issues.
With respect to the rental license violation, there is no dispute that the Property has been
rented by the Ireys to Owens since October25, 2015, and sublet to numerous subtenants between
that time and the date of the Notice. There is also no dispute that the Ireys and Owens were aware
of the rental license requirement at least by December 2015, and continued to rent the Property
without a license. The Ireys argue that theirassumption that a rental license was issued, because
of the City’s acceptance of a check,was reasonable, and request the Hearing Officerto hold
issuance of the citation in abeyance while the Ireys complete the rental housing license application.
However, the Ireys and Owens were aware of the rental license requirement before they issued a
check for a rental license to the City and continued to rent the Property. Furthermore, the Hearing
Officeris without jurisdiction to hold the citation in abeyance. The Hearing Officer’s
responsibility is to determine if, on or before May20, 2016, the Property was being operated as a
rental dwelling without first having obtained a license to do so.It was, and the citation must be
upheld.
With respect to the Citation for commercial use of the Property in the Single-Family
Residential Zoning District, the Ireys argue that the Code allows the rental of single-family
residences and “does not regulate in any way the length of a lease” or the amount of rent. That
much is true, but it doesnot go to the issue of whether rental of the Property, as opposed to use as
asingle-family residence,has become the principal use of the Property. Based on the evidence
received in this matter, the Hearing Officerconcludes that it has.
The Owens arein the business of renting this and other properties for short-term rentals.
The Owens advertise and rent the Property as a large space for “your family reunion, event,
seminar, conference, training, retreat” with a meeting room which can “easily fit 20-28people”
and can be “arranged for dining service.”Subtenants “book” their stay beginning at 4:00p.m. on
their “Check-In Date” andending at 10:00a.m. on their “Checkout Date.” Subtenants pay sales
and hospitality taxesand are encouraged to purchase “travel insurance.”Nearly 60% of the rentals
have been for two or three days.
The Ireys argue that,“the tenants are using the Property to reside on the Property like any
other homeowner,”and that subtenants “live in it as a home.” However, the evidence is that neither
the Ireys nor the Owens, much less the subtenants who sublet the Property for from two to seven
days, consider the Property to be their single-family residence or live in it as a home. Whether the
subtenants are individuals or businesses, they are checking in and checking out of the Property and
using it as they would a hotel, not as they would their single-family residence. In fact, the Owens
encourage subtenants to think of them as “the front desk of a hotel.”
The rental agreement between the Ireys and the Owens states that it “is not a property
management agreement.” Whether it is or is not is beyond the scope of this proceeding. However,
it is an agreement pursuant to which the Owens advertise the Property for short-term rental, book
reservations, check subtenants in and out, act as the front desk of a hotel, collect rents, pay sales
taxes, and pay the Ireys a percentage of the revenues received from rental of the Property.This is
using the Property for commercial, not single-family residential, purposes.
The Ireys argue further that short-term rentalof the Property to subtenants is not a
commercial use because the act of renting the Property to a subtenant is not a service. However,
the rental of property, be it personal propertyor real property such as hotel rooms, has long been
considered a retail service.For example, Section1201.22,Subd.2 of the City’s Zoning Ordinance,
identifies the permitted uses in the C-1 Zoning District, which include:
a. Trade and services. Retail stores, personal service or business service
establishments, including the following and other similar uses:
* * *
(51) Motels, motor hotels and hotels, provided that the lot contains not
less than 500 square feet of lot area per unit.
This language,which identifies the rental of hotel and motel rooms as a service use, does
not convert every real estate lease into a commercial use. Nor does the determination that the
Property has become a commercial use convert every lease of a single-family home into a
commercial use. It merely confirms thatwhen a property, be it a single-family home or a hotel
room, is rented to subtenants for short-term stays,the principal use of the Property can become for
commercial, not single-family residential, purposes.
2
Finally, the Ireys argue that the fact the City Planning Commission is considering
amending the Code to prohibit short-term stays is evidence that the Code does not prohibitedshort-
term leasesbecause otherwise the amendment would not be necessary. The Hearing Officerdoes
not accept this logic. Section1201.01,Subd.6,of the Zoning Ordinance provides that if a use is
considered prohibited because it is neither specifically permitted nor denied, the City Council may
conduct a study to determine if the use is acceptable and, if so, what Zoning District would be
most appropriate and whatconditions and standards should be adopted relating to the development
of theuse.
In this instance, the City has determined, pursuant to Section1201.01,Subd.6, that the
short-term rental of this single-family residential property is a commercial use that is prohibited in
the Single-Family Residential Zone and, pursuant to that same section, hasproceeded to conduct
a studyto determine if the use could be acceptable and, if so, what conditions and standards would
make it acceptable. Initiation of this study is not evidence that the Code does not prohibit the use,
but is evidence that the use is considered prohibited and the City is considering the conditions and
standards pursuant to which it might be allowed.
The evidence establishes that the principal use of the Property is not as a permitted single-
family residence, but a commercial use. The Citation must be upheld.
Peter K. Beck, Administrative Hearing Officer
Pursuant to appointment of the Shorewood City Council
3
#10B
MEETING TYPE
City of Shorewood Council Meeting Item
Regular Meeting
Title / Subject: Assessing for Utility Service Repairs
Meeting Date: November 14, 2016
Prepared by: Bruce DeJong, Finance Director
Reviewed by: Greg Lerud, City Administrator
Policy Consideration:
Should the City establish a policy for assessment of utility service line repairs?
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 5440 Wedgewood Drive to assess replacement of their sewer service line
from the house to the main. The reason for the request is that the sewer service line has either broken
or collapsed and has required cleaning several times to allow the sewage to flow to the main. The
owners are retired and on a fixed income, so the $2,000 estimated cost would be a hardship for their
budget. The owners would be open to petition the city and waiving their right to contest an assessment.
In reviewing other cities practice, many are open to allowing repairs to be assessed since the original
service installation was assessed at the time of installation. Most have a time period, generally not
exceeding 10 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, more than $5,000 - 10 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 1.49% for the five-year and 2.07% for the ten-
year according to www.treasury.gov. This would calculate to assessment interest rates of between
2.49% to 4.07%. 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 $2,000. 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.
1: M 10C
U2MEETING TYPE
City of Shorewood Council Meeting Item Regular Meeting
Title / Subject: Adoption of League of MN Cities and Association of Metropolitan Cities Policies
Meeting Date: November 14, 2016
Prepared by: Greg Lerud
Reviewed by:
Attachments:
Policy Consideration:
City of Shorewood's support for policies adopted by organizations the city is a member— League of
Minnesota Cities and Association of Metropolitan Cities.
Background:
Through an annual process, LMC and AMC develop and adopt draft policies of the organization's
position on issues that are important to their members. In the fall of each year, the draft policies are
sent out to the member cities for comment and consideration. These were sent to the council
previously, but are also found at www.imc.org and www.metrocitiesmn.org. No comments were
received from the council.
Recommendation / Action Requested:
Council member Woodruff has been the city's representative to these organizations and council action
would authorize him to represent the City of Shorewood at the organization's adoption meetings.
Next Steps and Timelines:
LMC Regional and AMC Policy adoption meeting will be held on November 30.
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
#10D
MEETING TYPE
City of Shorewood Council Meeting Item
Regular Meeting
Title / Subject: Lease-Purchase Agreement with Excelsior Fire District
Meeting Date: 11/14/16
Prepared by: Bruce DeJong, Finance Director
Reviewed by: Greg Lerud, City Administrator
Policy Consideration: Should the City finance a ladder truck for the Excelsior Fire District (EFD)?
Background: The Excelsior Fire District (EFD) Board authorized the department to purchase new ladder
truck. The EFD proposes to utilize a lease/purchase agreement for financing. The department has
previously contracted lease/purchase financing from the City of Shorewood for SCBA equipment and a
fire truck. The EFD has accepted the proposed financing of the new ladder truck at the 2% annual
interest recommended by the City Council. With interest rates continuing near all-time lows, the city
has not been able to find any investments at a higher rate for the five year period that the lease would
cover. Staff believes it to be an acceptable rate of return for the five year period of proposed financing
for the approximately $770,000 that the EFD has estimated to spend on the new truck.
The financing would be a single up-front payment for the full amount which allows for a discount on the
pricing of the truck. We have a tentative repayment schedule with the EFD that is included as an
attachment. The proposed lease-purchase contract is also attached. This format follows the most
recent fire truck lease-purchase contract. Approval of this financing will allow Fire Chief Gerber to
proceed with plans to place the ladder truck order.
Financial or Budget Considerations:
Staff suggests paying for the equipment out of the Water Fund. The Equipment Replacement Fund does
not have sufficient capital at this time to provide the cash. Staff further recommends that interest
earnings be credited to the General Fund and principal payments be credited to the Water Fund.
Options:
1.Accept the terms of the agreement and authorize staff to execute the lease-purchase agreeement
with the Excelsior Fire District.
2.Propose a different interest rate to the EFD.
3.Do nothing at this time and have the EFD seek outside financing.
Recommendation / Action Requested: Accept the terms of the agreement and authorize staff to
execute the lease-purchase agreement with the Excelsior Fire District.
Next Steps and Timelines: If approved, staff will work the EFD personnel to finalize details and purchase
arrangements.
Connection to Vision / Mission: This item is connected to the City’s goal of collaborating with other
communities and agencies.
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
LEASE-PURCHASE AGREEMENT
between
CITY OF SHOREWOOD, MINNESOTA,
as City
and
EXCELSIOR FIRE DISTRICT,
as Lessee
Dated as of November 15, 2016
TABLE OF CONTENTS
Page
PARTIES AND RECITALS ................................................................................................................... 1
ARTICLE I
Definitions and Exhibits
Section 1.1. Definitions ...................................................................................................................... 2
Section 1.2. Exhibits ............................................................................................................................ 3
ARTICLE II
Representations, Covenants and Warranties
Section 2.1. Representations, Covenants and Warranties of the District ............................................. 4
Section 2.2. Representations, Covenants and Warranties of the City .................................................. 5
ARTICLE III
Acquisition of Fire Equipment
Section 3.1. Acquisition Cost ............................................................................................................... 6
ARTICLE IV
Lease and Sale of Fire Equipment
Section 4.1. Lease and Sale of Fire Equipment ................................................................................... 7
Section 4.2. Lease Payments .............................................................................................................. 7
Section 4.3. Additional Lease Payments ............................................................................................. 7
Section 4.4. Source of Lease Payments .............................................................................................. 7
Section 4.5. District’s Obligations and Remedies ................................................................................ 8
Section 4.6. Possession and Enjoyment ............................................................................................. 8
Section 4.7. City Access to Fire Equipment ......................................................................................... 8
ARTICLE V
Term of Lease; Transfer or Surrender of Fire Equipment
Section 5.1. Lease Term ..................................................................................................................... 9
Section 5.2. Termination of Lease Term .............................................................................................. 9
Section 5.3. City’s Interest in the Fire Equipment ................................................................................ 9
Section 5.4. Surrender of Fire Equipment ........................................................................................... 9
Section 5.5. Purchase; Conveyance of Title ........................................................................................ 9
Section 5.6. Non-Appropriation ........................................................................................................... 9
Section 5.7. Intent to Continue Term; Appropriations ........................................................................ 10
Section 5.8. Effect of Termination ..................................................................................................... 10
i
ARTICLE VI
General Matters
Section 6.1. Use; Permits .................................................................................................................. 11
Section 6.2. Maintenance and Modification of Fire Equipment by the District .................................... 11
Section 6.3. Taxes and Other Governmental Charges ...................................................................... 11
Section 6.4. Liens ............................................................................................................................. 12
ARTICLE VII
Insurance and Indemnification; Damage, Destruction and Condemnation
Section 7.1. Liability Insurance .......................................................................................................... 13
Section 7.2. Property Insurance ........................................................................................................ 13
Section 7.3. Administration of Claims, Etc. ........................................................................................ 13
Section 7.4. Other Insurance and Requirements for All Insurance .................................................... 13
Section 7.5. Indemnification .............................................................................................................. 14
Section 7.6. Damage, Destruction and Condemnation ...................................................................... 14
Section 7.7. Cooperation of City ......................................................................................................... 14
ARTICLE VIII
Option to Purchase; Option to Prepay
Section 8.1. Option to Purchase or Prepay ....................................................................................... 15
Section 8.2. Exercise of Option 15
Section 8.3. Prerequisite; No Default ................................................................................................ 15
ARTICLE IX
Assignment, Subleasing, Indemnification, Mortgaging and Selling
Section 9.1. Assignment by City ........................................................................................................ 16
Section 9.2. Assignment and Subleasing by the District .................................................................... 16
Section 9.3. Restriction on Sale of Fire Equipment by the District ..................................................... 16
ARTICLE X
Events of Default and Remedies
Section 10.1. Events of Default Defined ............................................................................................ 17
Section 10.2. Remedies on Default ................................................................................................... 18
Section 10.3. Delay; Notice ............................................................................................................... 18
Section 10.4. No Remedy Exclusive ................................................................................................. 18
Section 10.5. No Additional Waiver Implied by One Waiver .............................................................. 18
ii
ARTICLE XI
Administrative Provisions
Section 11.1. Notices ............................................................................................................ 19
Section 11.2. Binding Effect .................................................................................................. 19
Section 11.3. Severability ...................................................................................................... 19
Section 11.4. Amendments, Changes and Modifications ....................................................... 19
Section 11.5. Further Assurances and Corrective Instruments .............................................. 19
Section 11.6. Execution in Counterparts ............................................................................... 19
Section 11.7. Applicable Law ................................................................................................ 19
Section 11.8. Authorized Officers .......................................................................................... 19
Section 11.9. Captions .......................................................................................................... 20
Iii
THIS LEASE-PURCHASE AGREEMENT, dated as of November 15, 2016 (the “Lease”),
IS by and between the CITY OF SHOREWOOD, MINNESOTA, a municipal corporation and
political subdivision of the State of Minnesota (the “City”), as lessor, and the EXCELSIOR FIRE
DISTRICT, a joint powers organization under the laws of the State of Minnesota (the “District”),
as lessee;
WITNESSETH
WHEREAS, the District is authorized by law to acquire such items of real and personal
property as are needed to carry out its governmental and proprietary functions, and to acquire
such real and personal property by entering into lease-purchase contracts; and
WHEREAS, the District has determined that it is necessary for it to acquire pursuant to
this Lease the City’s interest in certain fire department equipment (the “Fire Equipment”); and
WHEREAS, the City is willing to provide the funds necessary to acquire the Fire
Equipment and to lease and sell the Fire Equipment to the District, pursuant to this Lease; and
NOW, THEREFORE, in the joint and mutual exercise of their powers, and in
consideration of the mutual covenants herein contained, the parties hereto recite and agree as
follows:
(The remainder of this page is intentionally left blank.)
1
ARTICLE I
Definitions and Exhibits
Section 1.1. Definitions. Unless the context otherwise requires, the terms defined in this
Section shall, for all purposes of this Lease and Exhibits attached hereto, have the meanings herein
specified:
“Acquisition Cost” means the cost of acquisition of the Fire Equipment from the manufacturer
thereof.
“Additional Lease Payments” means payments due from the District pursuant to Section 4.3
hereof.
“Authorized Officer,” when used with respect to the District, means its Chair, its Fire Chief, or
any other person who is designated in writing by the District as an Authorized Officer for purposes of this
Lease, and when used with respect to the City means its Mayor, its City Administrator, or any other
person who is designated in writing by the City as an Authorized Officer for purposes of this Lease.
“City” means the City of Shorewood, Minnesota.
“District” means the Excelsior Fire District.
“Fire Equipment” means the Fire Equipment leased and sold to the District pursuant to this
Lease, which Fire Equipment is specifically described in Exhibit A attached hereto.
“Fiscal Year” means the twelve-month fiscal period of the City, which commences on January 1
and ends on December 31 in each year.
“Independent,” when used with reference to an attorney, engineer, architect, certified public
accountant, consultant or other professional person, means a person who (i) is in fact independent, (ii)
does not have any material financial interest in the transaction to which such person’s certificate or
opinion relates (other than payment to be received for professional services rendered), and (iii) is not
connected with the City or the District as an officer, director or employee.
“Independent Counsel” means an Independent attorney duly admitted to practice law before
the highest court of any state.
“Lease” means this Lease-Purchase Agreement, between the City, as lessor, and the District, as lessee,
as amended or supplemented from time to time.
“Lease Payment” means each of the payments due from the District to the City on each Lease
Payment Date during the Term of this Lease, as shown on Exhibit B.
“Lease Payment Date” means the date upon which any Lease Payment is due and payable as
provided in Exhibit B.
“Permitted Encumbrances” means, as of any particular time: (i) liens for taxes not then
delinquent, or which the District may, pursuant to provisions of Section 6.3 hereof, permit to remain
unpaid, (ii) this Lease and amendments hereto, and (iii) the City’s interest in the Fire Equipment.
2
“Purchase Price” means the amount necessary to pay the outstanding principal portion of Loan
Payments due for the remaining Term of this Lease, as shown on Exhibit B.
“State and Federal Laws” means the Constitution and any law of the State of Minnesota and any
ordinance, rule or regulation of any agency or political subdivision of the State of Minnesota; and any law
of the United States, and any rule or regulation of any executive department or federal agency.
“Term” means the period during which this Lease may remain in effect as specified in Section
5.1.
Section 1.2. Exhibits. The following Exhibits are attached to and by reference made a part of
this Lease:
Exhibit A: A description of the Fire Equipment.
Exhibit B: The Lease Payments coming due during the Lease Term.
3
ARTICLE II
Representations, Covenants and Warranties
Section 2.1. Representations, Covenants and Warranties of the District. The District represents,
covenants and warrants as follows:
(a) The District is authorized under the Constitution and laws of the State of
Minnesota to enter into this Lease and the transactions contemplated hereby, and to perform all of its
obligations hereunder.
(b) Neither the execution and delivery of this Lease, nor the fulfillment of or
compliance with the terms and conditions thereof, nor the consummation of the transactions
contemplated thereby, conflicts with or results in a breach of the terms, conditions or provisions of any
restriction or any agreement or instrument to which the District is now a party or by which the District is
bound, constitutes a default under any of the foregoing, or results in the creation or imposition of any lien,
charge or encumbrance whatsoever upon any of the property or assets of the District.
(c) This Lease is entered into under authority of and pursuant to Minnesota
Statutes, Section 465.71, as amended.
(d) The officers of the District executing this Lease have been duly authorized to do
so.
(e) The District will not pledge or assign this Lease, or its rights, duties and
obligations hereunder to any other person, firm or corporation except as provided under the terms of this
Lease.
(f) Subject to the provisions of Section 5.6 hereof, the District’s administration will
include in the annual budget of the District submitted to its governing body, for each Fiscal Year during
the Lease Term, money sufficient to pay and for the purpose of paying all Lease Payments and Additional
Lease Payments and other obligations of the District under this Lease, and for this purpose the District
will make a reasonable estimate of Additional Lease Payments to become due in the next fiscal year, and
will take all other actions necessary to provide money for the payment of the obligations of the District
under this Lease from sources of the District lawfully available for this purpose.
(g) Except to the extent specifically provided herein, the District is not obligated to
appropriate or otherwise provide money for the payment of the Lease Payments or any other amounts
coming due hereunder; and in the event of non-appropriation or non-renewal by the District, the District
shall not be liable for general, special, incidental, consequential or other damages resulting therefrom.
This Lease does not constitute a general obligation of the District, and the full faith and credit and taxing
powers of the District are not pledged for the payment of the Lease Payments or other amounts coming
due, or other actions required to be performed, hereunder.
(h) The District declares its current need for the Fire Equipment. The District has
determined that the Purchase Price to be paid for the Fire Equipment under this Lease represents the fair
market value of the Fire Equipment; that Lease Payments and Additional Lease Payments hereunder
during the Lease Term represent the fair value of the use of the Fire Equipment, and that the Purchase
Price represents the fair purchase price of the Fire Equipment. The District determines that the Lease
4
Payments and Additional Lease Payments do not exceed a reasonable amount so as to place the District
under an economic compulsion to renew this Lease or to exercise its option to purchase the Fire
Equipment hereunder. In making such determinations the District has given consideration to the costs
of the Fire Equipment, the uses and purposes for which the Fire Equipment will be employed by the
District, the benefit to the District by reason of the acquisition of the Fire Equipment pursuant to the
terms and provisions of this Lease and the District’s option to purchase the Fire Equipment. The District
determines and declares that the acquisition of the Fire Equipment and the leasing of the Fire
Equipment pursuant to this Lease will result in facilities of comparable quality and meeting the same
requirements and standards as would be necessary if the acquisition of the Fire Equipment were
performed by the District other than pursuant to this Lease. The District determines and declares that
the period during which the District has an option to purchase the Fire Equipment (i.e., the Term of this
Lease) does not exceed the useful life of the Fire Equipment.
Section 2.2. Representations, Covenants and Warranties of the City. The City represents,
covenants and warrants as follows:
(a) The City is authorized under the Constitution and laws of the State of Minnesota
to enter into this Lease and the transactions contemplated hereby, and to perform all of its obligations
hereunder.
(b) The officers of the City executing this Lease have been duly authorized to do so.
(c) Neither the execution and delivery of this Lease, nor the fulfillment of or
compliance with the terms and conditions thereof, nor the consummation of the transactions
contemplated thereby, conflicts with or results in a breach of the terms, conditions or provisions of any
restriction or any agreement or instrument to which the City is now a party or by which the City is
bound, constitutes a default under any of the foregoing, or results in the creation or imposition of any
lien, charge or encumbrance whatsoever upon any of the property or assets of the City, or upon the Fire
Equipment, except Permitted Encumbrances.
5
ARTICLE III
Acquisition of Fire Equipment
Section 3.1. Acquisition Cost. The total Acquisition Cost of the Equipment is estimated to be $770,000.
In order to provide the money needed to pay the Acquisition Cost when due, and in consideration of the
actions agreed to be performed by the District under this Lease, the City has provided to the District the
sum of $770,000.
(The remainder of this page is intentionally left blank.)
6
ARTICLE IV
Lease and Sale of Fire Equipment
Section 4.1. Lease and Sale of Fire Equipment. The City hereby leases and sells its interest in the
Fire Equipment to the District, and the District hereby leases and purchases the City’s interest in the Fire
Equipment from the City, upon the terms and conditions set forth in this Lease. The sale shall be
completed in accordance with the terms of Section 5.5 hereof.
The Fire Equipment is leased and sold in its present condition without representation or
warranty of any kind by the City, and subject to all applicable legal requirements now or hereafter in
effect.
Section 4.2. Lease Payments. Subject to the provisions of Section 4.4 hereof, the District shall
pay to the City Lease Payments at the times and in the manner specified in the attached Exhibit B. The
Lease Payments shall be paid to the City in lawful money of the United States of America.
Section 4.3. Additional Lease Payments. During the Term of this Lease, the District shall pay or
cause to be paid as Additional Lease Payments the following amounts:
(a) All expenses incurred in connection with the enforcement of any rights under
this Lease by the City.
(b) All other payments of whatever nature which the District has agreed to pay or
assume under the provisions of this Lease (including, without limitation, any amounts advanced under
Section 6.2(b) hereof and interest thereon).
Section 4.4. Source of Lease Payments. Notwithstanding any other provision of this Lease
apparently to the contrary, this Lease shall not constitute a general obligation of the District, and the full
faith and credit of the District are not pledged for the payment of the Lease Payments or the
performance by the District of its obligations hereunder. The Lease Payments and Additional Lease
Payments shall be paid, and other obligations of the District hereunder shall be met, solely from the
amount appropriated by the District’s governing board for such purpose in the District’s annual budget
and shall constitute a current expense of the District for the Fiscal Year then in effect. This Lease shall
not constitute an indebtedness of the District within the meaning of the Constitution and laws of the
State of Minnesota.
Subject to the foregoing provisions of this Section 4.4, so long as this Lease is in effect, the
District shall use any legally available funds to make delinquent and future Lease Payments hereunder.
The other obligations of the District hereunder shall be met solely from one or more of the
following: (a) Net Proceeds of insurance or self-insurance required to be maintained by the District
under Article VII; (b) Net Proceeds of any condemnation award with respect to the Fire Equipment; and
(c) money from time to time appropriated by the District’s governing board for this purpose, provided
that the District’s governing board shall have no legal obligation to appropriate money for this purpose.
Section 4.5. District’s Obligations and Remedies.
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(a) Except as provided in Section 5.6 hereof, the District’s obligation to pay Lease Payments
due with respect to the Fire Equipment, and to perform and observe all other covenants and
agreements of the District contained herein, shall be absolute and unconditional; and the Lease
Payments and Additional Lease Payments due and payable hereunder shall be made without notice or
demand and without set-off, counterclaim, abatement, deduction or defense including, without
limitation, any failure or delay by the City in the performance of any of its obligations hereunder, and
irrespective of whether the District’s or the City’s title thereto or to any part thereof is defective or
nonexistent, and notwithstanding any damage to, loss, theft or destruction of the Fire Equipment or any
part thereof, any failure of consideration, any change in the tax or other laws of the United States of
America, the State of Minnesota or any political subdivision thereof, any change in the City’s legal
organization or status, or any default of the City hereunder, and regardless of the invalidity of any action
of the City, and regardless of the invalidity of any portion of this Lease.
(b) Notwithstanding any provision or covenant contained in this Lease, the District is not
obligated to renew the Lease beyond any Fiscal Year from time to time in effect, nor is it obligated to
budget or appropriate money or to pay Lease Payments or Additional Lease Payments beyond the end
of the Fiscal Year in effect at a given time.
(c) Nothing in this Lease shall be construed to release the City from the performance of any
agreement on its part herein contained or as a waiver by the District of any rights or claims which the
District may have against the City under this Lease or otherwise, but any recovery upon such rights and
claims shall be had from the City separately, it being the intent of this Lease that the District shall be
unconditionally and absolutely obligated to perform fully all of its obligations, agreements and
covenants under this Lease during the Term of this Lease unless sooner terminated in accordance with
Section 5.2 hereof (including the obligation to make Lease Payments and Additional Lease Payments).
The District may, however, at its own cost and expense and in its own name or in the name of the City,
prosecute or defend any action or proceeding or take any other action involving third persons which the
District deems reasonably necessary in order to secure or protect its right of possession and use
hereunder, and in such event the City agrees to cooperate fully with the District and to take all action
necessary to effect the substitution of the District for the City in any such action or proceeding if the
District shall so request.
Section 4.6. Possession and Enjoyment. The City covenants to provide the District during the
Term of this Lease with quiet use and enjoyment of the Fire Equipment, and the District shall during
such Term peaceably and quietly have and hold and enjoy the Fire Equipment, without suit, trouble or
hindrance from the City, except as expressly set forth in this Lease. At the request of the District and at
the District’s cost, the City will join in any legal action in which the District asserts its right to such
possession and enjoyment to the extent the City may lawfully do so.
Section 4.7. City Access to Fire Equipment. The City shall have the right at all reasonable times
to examine and inspect the Fire Equipment, and shall have such rights of access to the Fire Equipment
as may be reasonably necessary to cause the proper maintenance thereof in the event of failure by the
District to perform its obligations hereunder.
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ARTICLE V
Term of Lease;
Transfer or Surrender of Fire Equipment
Section 5.1. Lease Term. Subject to the provisions of Section 5.6 hereof, this Lease shall be in
effect for a Term commencing upon the execution hereof and ending on January 15, 2022.
Section 5.2. Termination of Lease Term. The Term of this Lease will terminate upon the
occurrence of the first of the following events:
(a) non-appropriation by the District pursuant to Section 5.6 hereof;
(b) the payment by the District of the Purchase Price, pursuant to Section 8.1; or
(c) a default by the District and the City’s election to terminate this Lease pursuant
to Article X.
Section 5.3. City’s Interest in the Fire Equipment. Upon payment of all Lease Payments and
Additional Lease Payments due hereunder, or upon prepayment of the Lease Payments and Additional
Lease Payments in accordance with Article VIII hereof, full and unencumbered legal title to the Fire
Equipment shall pass to the District, and the City shall have no further interest therein. In such event
the City and its officers shall take all actions necessary to authorize, execute and deliver to the District
any and all documents necessary to vest in the District all of the City’s right, title and interest in and to
the Fire Equipment, free and clear of all liens, leasehold interests, encumbrances (other than Permitted
Encumbrances), including, if necessary, a release of any and all interests or liens created under the
provisions of this Lease.
Section 5.4. Surrender of Fire Equipment. Upon termination of the Term of this Lease pursuant
to Section 5.2, clause (a) or (c), or upon exercise by the City of its right to take possession of the Fire
Equipment under Section 10.2 hereof, the District shall surrender the Fire Equipment to the City in the
condition in which it was originally received, except as repaired, rebuilt, restored, altered or added to as
permitted or required hereby, ordinary wear and tear excepted.
Section 5.5. Purchase; Conveyance of Title. At any time when the Purchase Price, together with
any unpaid or delinquent interest, has been fully paid or provided for, whether by (i) payment of all
Lease Payments and Additional Lease Payments as provided in Section 5.1 hereof, or (ii) payment of the
Purchase Price as provided in Article VIII hereof, then the purchase of the Fire Equipment by the District
shall be deemed to have been completed. The City shall thereupon deliver to the District such
instruments of conveyance or release as, in the opinion of the District, may be necessary to release the
interests of the City in the Fire Equipment.
Section 5.6. Non-Appropriation. If the governing body of the District does not appropriate or
budget money sufficient to pay the Lease Payments and reasonably estimated Additional Lease
Payments coming due in the next Fiscal Year, as determined by the District’s budget for the Fiscal Year in
question, then the Term of this Lease shall terminate at the end of the then-current Fiscal Year. The
governing body of the District shall effect such non-appropriation by adoption of a resolution specifically
referring to this Lease and determining (i) not to provide money for payments due hereunder in the next
Fiscal Year, and (ii) that the Lease shall terminate at the end of the then-current Fiscal Year, and the
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District shall give the City a written notice of such non-appropriation and shall pay to the City any Lease
Payments and Additional Lease Payments which are due and have not been paid at or before the end of
its then-current Fiscal Year. The District shall endeavor to give as much notice of non-renewal as
possible prior to the end of such Fiscal Year, but in any event the District shall not be required to give
more than twelve (12) months’ notice, and shall notify the City of any anticipated termination. In the
event of termination of this Lease as provided in this Section, the District shall surrender possession of
the Fire Equipment to the City in accordance with Section 5.4 hereof and convey to the City or release its
interest in the Fire Equipment within ten (10) days after the expiration of the then-current term.
Section 5.7. Intent to Continue Term; Appropriations. The District presently intends to continue
this Lease for its entire Term and to pay all Lease Payments specified in Exhibit B and Additional Lease
Payments. The District reasonably believes that money in an amount sufficient to make all such Lease
Payments and Additional Lease Payments can and will lawfully be appropriated or budgeted and made
available.
Section 5.8. Effect of Termination. Upon termination of this Lease as provided in Section 5.6
hereof, the District shall not be responsible for the payment of any Lease Payments or Additional Lease
Payments coming due with respect to succeeding Fiscal Years, but if the District has not delivered
possession of the Fire Equipment to the City in accordance with Section 5.4 hereof and conveyed to the
City or released its interest in the Fire Equipment within ten (10) days after the termination date, the
termination shall nevertheless be effective, but the District shall be responsible for the payment of
damages in an amount equal to the amount of the Lease Payments thereafter coming due under Exhibit
B and Additional Lease Payments which are attributable to the number of days during which the District
fails to take such actions and for any other loss suffered by the City as a result of the District’s failure to
take such actions as required. The District shall be required to pay over to the City any money, which it
has appropriated or budgeted for the purpose of paying obligations under this Lease for any Fiscal Years
preceding the Fiscal Year for which non-renewal under Section 5.6 is effective.
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ARTICLE VI
General Matters
Section 6.1. Use; Permits. The District shall exercise due care in the use, operation and
maintenance of the Fire Equipment, and shall not use, operate or maintain the Fire Equipment
improperly, carelessly, in violation of any State and Federal Law or for a purpose or in a manner contrary
to that contemplated by this Lease. The District shall obtain or cause to be obtained all permits and
licenses necessary for the operation, possession and use of the Fire Equipment. The District shall
comply with all State and Federal Laws applicable to the operation, possession and use of the Fire
Equipment, and if compliance with any such State and Federal Law requires changes or additions to be
made to the Fire Equipment, such changes or additions shall be made by the District at its expense.
Section 6.2. Maintenance and Modification of Fire Equipment by the District. During the Term
of this Lease the District shall, at its own expense, maintain, preserve and keep the Fire Equipment in
good repair, working order and condition, and shall from time to time make all repairs, replacements
and improvements necessary to keep the Fire Equipment in such condition. The City shall have no
responsibility for any of these repairs, replacements or improvements. In addition, the District shall, at
its own expense, have the right to remodel the Fire Equipment or to make additions, modifications and
improvements thereto. All such additions, modifications and improvements shall thereafter comprise
part of the Fire Equipment and be subject to the provisions of this Lease. Such additions, modifications
and improvements shall not in any way damage the Fire Equipment; and the Fire Equipment, upon
completion of any additions, modifications and improvements made pursuant to this Section, shall be of
a value not less than the value of the Fire Equipment immediately prior to the making of such additions,
modifications and improvements. The District will not permit any lien to be established or remain
against the Fire Equipment for labor or materials furnished in connection with any additions,
modifications, improvements, repairs, renewals or replacements made by the District pursuant to this
Section; provided that if any such lien is established and the District shall first notify the City of the
District’s intention to do so, the District may in good faith contest any lien filed or established against
the Fire Equipment, and in such event may permit the items so contested to remain un-discharged and
un-satisfied during the period of such contest and any appeal therefrom unless the City shall notify the
District that, in the opinion of Independent Counsel, by nonpayment of any such item the interest of the
City in the Fire Equipment will be materially endangered or the Fire Equipment or any part thereof will
be subject to loss or forfeiture, in which event the District shall promptly pay and cause to be satisfied
and discharged all such unpaid items or provide the City with full security against any such loss or
forfeiture, in form satisfactory to the City. The City will cooperate fully with the District in any such
contest, upon the request and at the expense of the District.
Section 6.3. Taxes and Other Governmental Charges. During the Term of this Lease the District
shall also pay or cause to be paid when due all taxes and governmental charges of any kind whatsoever
which may at any time be lawfully assessed or levied against or with respect to the Fire Equipment or
the Lease Payments, and which become due during the Term of this Lease with respect thereto.
The District may, at the District’s expense and in the District’s name, in good faith contest any
such taxes and other charges, and, in the event of any such contest, may permit the taxes or other
charges so contested to remain unpaid during the period of such contest and any appeal therefrom
unless the City shall notify the District that, in the opinion of Independent Counsel, by nonpayment of
any such items the interest of the City in the Fire Equipment will be materially endangered or the Fire
Equipment or any part thereof will be subject to loss or forfeiture, in which event the District shall
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promptly pay such taxes, assessments or charges or provide the City with full security against any loss
which may result from nonpayment, in form satisfactory to the City.
Section 6.4. Liens. The District shall not, directly or indirectly, create, incur, assume or suffer to
exist any pledge, lien, charge, encumbrance or claim on or with respect to the Fire Equipment, except
the respective rights of the City and the District as herein provided and Permitted Encumbrances.
Except as expressly provided in this Article, the District shall promptly, at its own expense, take such
action as may be necessary to duly discharge or remove any such pledge, lien, charge, encumbrance or
claim if the same shall arise at any time. The District shall reimburse the City for any expense incurred
by it in order to discharge or remove any such pledge, lien, charge, encumbrance or claim.
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ARTICLE VII
Insurance and Indemnification;
Damage, Destruction and Condemnation
Section 7.1. Liability Insurance. During the Term of this Lease the District shall procure and
maintain continuously in effect with respect to the Fire Equipment, insurance against liability for injuries
to or death of any person or damage to or loss of property arising out of or in any way relating to the
maintenance, use or operation of the Fire Equipment in amounts not less than the District’s tort liability
limits under Minnesota Statutes, Chapter 466 for death of or personal injury to any one person, in
amounts not less than the District’s tort liability limits under Minnesota Statutes, Chapter 466 for all
personal injuries and deaths arising out of any one occurrence, and in amounts not less than the
District’s tort liability limits under Minnesota Statutes, Chapter 466 for property damage arising out of
any one occurrence. It is understood that with respect to persons or entities other than the City, this
insurance covers any and all liability of the District and its officers, employees and agents. As an
alternative to the purchase of liability insurance, the District may self-insure against such liabilities in
accordance with the provisions of applicable law. Policies of commercial insurance may include
deductibles of no more than ten percent (10%) of policy amounts.
Section 7.2. Property Insurance. During the Term of this Lease, the District shall procure and
maintain continuously in effect, to the extent of the full insurable value of the Fire Equipment, in an
amount at least equal to the Purchase Price in effect from time to time, insurance against loss from or
damage by vandalism and fire, with a uniform standard extended coverage endorsement limited only as
may be provided in the standard form of extended coverage endorsement at the time in use in the State
of Minnesota, in such amount as will be at least sufficient so that a claim may be made for the full
replacement cost of any part thereof damaged or destroyed. All policies (or endorsements or riders)
evidencing insurance required in this Section shall be carried in the names of the District and the City as
their respective interests may appear.
Section 7.3. Administration of Claims, Etc. Neither the District nor the City shall be required to
prosecute any claim against or contest any settlement proposed by any insurer, but any of them may
prosecute any such claim or contest any such settlement. In the event of a contest by the District, it
shall be at the District’s expense, and the District may bring such claim or contest in the name of the
City, the District or both, and the City will join therein at the District’s written request upon the receipt
by the City of an indemnity from the District against all costs, liabilities and expenses in connection with
such claim or contest.
Section 7.4. Other Insurance and Requirements for All Insurance. All insurance required by this
Article may be carried under a separate policy or a rider or endorsement; shall be taken out and
maintained with responsible insurance companies organized under the laws of one of the states of the
United States and qualified to do business in the State of Minnesota; shall contain a provision that the
insurer shall not cancel or revise coverage thereunder without giving written notice to the District and
the City at least thirty (30) days before the cancellation or revision becomes effective; and shall name
the District and the City as insured parties. The insurance required by Sections 7.1 and 7.2 hereof may
be provided by the District pursuant to an umbrella policy which provides coverage for the amounts and
the insurable incidents provided in such Sections. Annually, the District shall deposit with the City
policies evidencing any such insurance procured by it, or a certificate or certificates of the respective
insurers stating that such insurance is in force and effect, along with a certificate from an insurance
consultant stating that all insurance complies with the requirements of this Article VII. Before the
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expiration of any such policy, the District shall furnish to the City evidence that the policy has been
renewed or replaced by another policy conforming to the provisions of this Article, unless such
insurance is no longer obtainable, in which event the District shall file its self-insurance plan with the
City.
Section 7.5. Indemnification. As between the City and the District, to the extent permitted by
the laws of the State of Minnesota, the District assumes all risks and liabilities, whether or not covered
by insurance, for loss or damage to the Fire Equipment and for injury to or death of any person or
damage to any property, whether such injury or death be with respect to agents or employees of the
District, the City or of third parties, and whether such property damage be to the District’s or the City’s
property or the property of others, which is proximately caused by the negligent conduct of the District,
its officers, employees, agents and lessees, or arising out of the operation, maintenance or use of the
Fire Equipment by the District, its officers, employees, agents and lessees. The District hereby assumes
responsibility for and agrees to reimburse the City for all liabilities, obligations, losses, damages,
penalties, claims, actions, costs and expenses (including reasonable attorney's fees) of whatsoever kind
and nature, imposed on, incurred by or asserted against the City or its officers or employees that in any
way relate to or arise out of a claim, suit or proceeding based in whole or in part on the foregoing, to the
maximum extent permitted by law.
Section 7.6. Damage, Destruction and Condemnation. If the Fire Equipment or any portion
thereof is destroyed (in whole or in part) or is damaged by fire or other casualty or title to or the
temporary use of the Fire Equipment, or the interest of the District or the City in the Fire Equipment, the
District shall be obligated to continue to pay the Lease Payments and Additional Lease Payments due
with respect to the Fire Equipment.
Section 7.7. Cooperation of City. The City shall cooperate fully with the District at the expense
of the District in filing any proof of loss with respect to any insurance policy covering the casualties
described in Section 7.6 hereof and in the prosecution or defense of any prospective or pending
condemnation proceeding with respect to the Fire Equipment or any part thereof and will, to the extent
it may lawfully do so, permit the District to litigate in any proceeding resulting therefrom in the name of
and on behalf of the City. In no event will the City voluntarily settle, or consent to the settlement of, any
proceeding arising out of any insurance claim with respect to the Fire Equipment or any part thereof
without the written consent of the District.
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ARTICLE VIII
Option to Purchase; Option to Prepay
Section 8.1. Option to Purchase or Prepay. The District shall have the option to prepay unpaid
Prepayments may occur on any
Lease Payments and Additional Lease Payments, in whole or in part.
date lease payments are due.
Section 8.2. Exercise of Option. The District shall give notice to the City of its intention to
exercise its purchase or prepayment option not less than thirty (30) days in advance of the date of
prepayment or purchase, and shall pay to the City on the date of prepayment or purchase the
prepayment amount or (in the event of a purchase) an amount equal to the then current Purchase Price,
plus unpaid interest accrued on the Purchase Price since the preceding Lease Payment Date at the rate
specified in Exhibit B hereof.
Section 8.3. Prerequisite; No Default. The District may exercise the rights specified in Sections
8.1 and 8.2 only if it is not in default under this Lease or if the exercise of such rights cures any default
that then exists.
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ARTICLE IX
Assignment, Subleasing, Indemnification,
Mortgaging and Selling
Section 9.1. Assignment by City. The City’s rights and obligations under this Lease, including the
right to receive and enforce payment of the Lease Payments and Additional Lease Payments to be made
by the District under this Lease and its interest in the Fire Equipment, may be assigned, pledged or
transferred, in whole or in part, at any time. The City shall give notice to the District of any such
assignment, pledge or transfer.
Section 9.2. Assignment and Subleasing by the District. The rights and obligations of the District
under this Lease may not be assigned by the District without the written consent of the City.
Section 9.3. Restriction on Sale of Fire Equipment by the District. Without the prior written
consent of the City, the District will not sell, assign, transfer or convey the Fire Equipment or any portion
thereof during the Term of this Lease.
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ARTICLE X
Events of Default and Remedies
Section 10.1. Events of Default Defined. Any one or more of the following events shall be an
“Event of Default” under this Lease:
(a) Failure by the District to pay any Lease Payment, Additional Lease Payment, or
other payment required to be paid hereunder at the time and from the sources specified herein.
(b) Failure by the District to observe and perform any covenant, condition or
agreement on its part to be observed or performed, other than as referred to in clause (a) of this
Section, for a period of sixty (60) days after written notice specifying such failure and requesting that it
be remedied has been given to the District by the City, unless the City shall agree in writing to an
extension of such time prior to its expiration; provided, however, if the failure stated in the notice
cannot be corrected within the applicable period, the City shall not unreasonably withhold its consent to
an extension of such time if corrective action is instituted by the District within the applicable period and
diligently pursued until the default is corrected.
(c) The occurrence of any of the following events:
(i) The District shall (a) apply for or consent to the appointment of, or the taking of
possession by, a receiver, custodian, trustee, liquidator or the like of the District or of all or a substantial
part of its property, (b) commence a voluntary case under the Federal Bankruptcy Code (as now or
hereafter in effect), or (c) file a petition seeking to take advantage of any other law relating to
bankruptcy, insolvency, reorganization, winding-up or composition or adjustment of debts; or
(ii) A proceeding or case shall be commenced, without the application or consent of
the District, as the case may be, in any court of competent jurisdiction, seeking (a) the liquidation,
reorganization, dissolution, winding-up, or the composition or adjustment of debts, of the District, (b)
the appointment of a trustee, receiver, custodian, liquidator or the like of the District, or (c) similar relief
in respect of the District under any law relating to bankruptcy, insolvency, reorganization, winding-up or
composition or adjustment of debts, and such proceeding or case has not been dismissed within sixty
(60) days of the filing thereof.
The provisions of Section 10.1(b) are subject to the following limitation: if by reason of force
majeure either party is unable in whole or in part to carry out its obligations under this Lease, it shall not
be deemed in default during the continuance of such inability or during any other delays which are a
direct consequence of the force majeure inability, and the time for such performance shall be extended
to cover such delays. The term “force majeure” as used herein shall mean, without limitation, the
following: acts of God; strikes, lockouts or other industrial disturbances; acts of public enemies; orders
or restraints of any kind of the government of the United States of America or any of its departments,
agencies or officials, or any civil or military authority, or the State of Minnesota or any of its
departments, agencies or officials; insurrections; riots; landslides; earthquakes; fires; storms; droughts;
floods; explosions; breakage or accident to machinery, transmission pipes or canals; or any other cause
or event not reasonably within the control of a party and not resulting from its negligence. Each party
agrees, however, to remedy with all reasonable dispatch the cause or causes preventing it from carrying
out its agreements.
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Section 10.2. Remedies on Default. Whenever any Event of Default shall have happened and be
continuing, the City may take, but only upon not less than five (5) days’ written notice to the District,
one or any combination of the following remedial steps:
(a) Without terminating this Lease, take possession of the Fire Equipment and
exclude the District from using it until the Event of Default is cured; or
(b) Subject to the provisions of Section 5.6 hereof, take any action at law or in
equity which may appear necessary or desirable to: (i) collect the Lease Payments and Additional Lease
Payments then due for the Fiscal Year then in effect; (ii) collect any Lease Payments and Additional
Lease Payments to become due and payable during the current Fiscal Year; or (iii) enforce performance
and observance of any obligation, agreement or covenant of the District under this Lease; or
(c) Terminate the Term of this Lease, exclude the District from possession of the
Fire Equipment, and use its best efforts to lease or sell the Fire Equipment to another for the account of
the District, holding the District liable for the difference between the rentals received and the Lease
Payments and Additional Lease Payments which would have been receivable hereunder for the Fiscal
Year then in effect.
Section 10.3. Delay; Notice. No delay or omission to exercise any right or power accruing upon
any default shall impair any such right or power or shall be construed to be a waiver thereof, but any
such right and power may be exercised from time to time and as often as may be deemed expedient. In
order to entitle any party to exercise any remedy reserved to it in this Lease it shall not be necessary to
give any notice, other than such notice as may be required in this Lease.
Section 10.4. No Remedy Exclusive. No remedy herein conferred upon or reserved to the City is
intended to be exclusive and every such remedy shall be cumulative and shall be in addition to every
other remedy given under this Lease or now or hereafter existing at law or in equity. No delay or
omission to exercise any right or power accruing upon any default shall impair any such right or power
or shall be construed to be a waiver thereof, but any such right and power may be exercised from time
to time and as often as may be deemed expedient.
Section 10.5. No Additional Waiver Implied by One Waiver. In the event any agreement
contained in this Lease is breached by either party and thereafter waived by the other party, such
waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other
breach hereunder.
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ARTICLE XI
Administrative Provisions
Section 11.1. Notices. All notices, certificates or other communications hereunder shall be
sufficiently given and shall be deemed given when delivered or deposited in the United States mail in
certified or registered form with postage fully prepaid:
If to the District: Excelsior Fire District
24100 Smithtown Road
Shorewood, Minnesota 55331
If to the City: City of Shorewood, Minnesota
5575 Country Club Road
Shorewood, Minnesota 55331
The District or the City, by notice given hereunder, may designate different addresses to which
subsequent notices, certificates or other communications will be sent.
Section 11.2. Binding Effect. This Lease shall inure to the benefit of and shall be binding upon
the City and the District and their respective successors and assigns.
Section 11.3. Severability. In the event any provision of this Lease shall be held invalid or
unenforceable by any court or competent jurisdiction, such holding shall not invalidate or render
unenforceable any other provision hereof.
Section 11.4. Amendments, Changes and Modifications. This Lease may be amended or any of
its terms modified only by written amendment authorized and executed by the District and the City;
provided that no such amendment shall be effective without the consent of any person or entity to
whom the rights of the City to receive Lease Payments due hereunder has been assigned.
Section 11.5. Further Assurances and Corrective Instruments. The City and the District agree
that they will, if necessary, execute, acknowledge and deliver, or cause to be executed, acknowledged
and delivered, such supplements hereto and such further instruments as may reasonably be required for
correcting any inadequate or incorrect description of the Fire Equipment or for carrying out the
expressed intention of this Lease.
Section 11.6. Execution in Counterparts. This Lease may be simultaneously executed in several
counterparts, each of which shall be an original and all of which shall constitute but one and the same
instrument.
Section 11.7. Applicable Law. This Lease shall be governed by and construed in accordance with
the laws of the State of Minnesota.
Section 11.8. Authorized Officers. Whenever under the provisions of this Lease the approval of
the City or the District is required, or the City or the District is required to take some action at the
request of the other, such approval of such request shall be given for the City or for the District by an
Authorized Officer, and any party hereto shall be authorized to rely upon any such approval or request.
19
Section 11.9. Captions. The captions or headings in this Lease are for convenience only and in
no way define, limit or describe the scope or intent of any provisions or Sections of this Lease.
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20
IN WITNESS WHEREOF, the City has caused this Lease to be executed in its name by its duly
authorized officers and sealed with its corporate seal, and the District has caused this Lease to
be executed in its name by its duly authorized officers, as of the date first above written.
CITY OF SHOREWOOD, MINNESOTA,
as Lessor
By ____________________________________________
Its Mayor
By ____________________________________________
Its City Administrator
EXCELSIOR FIRE DISTRICT,
as Lessee
By ____________________________________________
Its Chair
By ____________________________________________
Its Fire Chief
21
EXHIBIT A
Description of Fire Equipment
Lease Purchase - Appendix B
Inputs
Loan principal amount $770,000.00
Annual interest rate 2.000%
Loan period in years 5
Base year of loan 2017
Base month of loan January
Payments
Cumulative Cumulative Ending
Year Month Payment Principal Interest
Principal Interest Balance
1/15/17 $770,000.00
1/15/18 $163,365.36 $147,965.36 $15,400.00 $147,965.36 $15,400.00 $622,034.64
1/15/19 $163,365.36 $150,924.67 $12,440.69 $298,890.03 $27,840.69 $471,109.97
1/15/20 $163,365.36 $153,943.16 $9,422.20 $452,833.19 $37,262.89 $317,166.81
1/15/21 $163,365.36 $157,004.64 $6,360.72 $609,837.83 $43,623.61 $160,162.17
1/15/22 $163,365.41 $160,162.17 $3,203.24 $770,000.00 $46,826.85 $0.00