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10-22-18 CC Reg Mtg Agenda Packet CITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD CITY COUNCIL REGULAR MEETING COUNCIL CHAMBERS MONDAY, OCTOBER 22, 2018 7:00 P.M. AGENDA 1. CONVENE CITY COUNCIL MEETING A. Roll Call Mayor Zerby___ Johnson___ Labadie___ Siakel___ Sundberg___ B. Review Agenda Attachments 2. CONSENT AGENDA – Motion to approve items on the Consent Agenda & Adopt Resolutions Therein: A. City Council Work Session Minutes of October 9, 2018 Minutes B. City Council Regular Meeting Minutes of October 9, 2018 Minutes C. Approval of the Verified Claims List Claims List D. Approval of 2018 Audit Engagement Letter Finance Director Memo E. Approval of 2018 Hennepin County Hazard Mitigation Plan Police Chief Memo Resolution 18-105 F. Accept Arctic Fever Donation from HomeAdvisor Clerk Memo Resolution 18-106 3. MATTERS FROM THE FLOOR (No Council Action will be taken) 4. PUBLIC HEARING 5. REPORTS AND PRESENTATIONS 6. PARKS A. Accept Quote for PIP Rubber Surface at Badger Park Playground Planning Director Memo Resolution18-107 7. PLANNING A. Report by Commissioner Reidel on the October 2, 2018 Planning Commission Meeting Minutes CITY COUNCIL REGULAR MEETING AGENDA – OCTOBER 22, 2018 Page 2 B. Variance Request for Additional Signage Planning Director Memo At 19285 State Highway 7 (Starbucks) Resolution 18-108 C. Encroachment Agreement Request for 5865 Glencoe Rd. Planning Director Memo Resolution 18-109 8. ENGINEERING/PUBLIC WORKS 9. GENERAL/NEW BUSINESS A. Organized Garbage Collection Survey Proposal City Administrator Memo B. Purchase Agreement for Property on Smithtown Road City Administrator Memo Resolution 18-110 10. STAFF AND COUNCIL REPORTS A. Administrator and Staff 1. Monthly Budget Report Finance Director Memo 2. Investment Report Finance Director Memo B. Mayor and City Council 11. ADJOURN 2A CITY OF SHOREWOOD MANOR PARK CITY COUNCIL WORK SESSION WARMING HOUSE MONDAY, OCTOBER 9, 2018 5:30 P.M. MINUTES 1. CONVENE CITY COUNCIL WORK SESSION Mayor Zerby called the meeting to order at 5:30 P.M. A. Roll Call Present. Mayor Zerby; Councilmembers Siakel, Labadie, and Johnson (arrived at 5:31); Park Commission Chair Justin Mangold; City Administrator Lerud; Planning Director Darling; Director of Public Works Brown; City Engineer Fauske, Park and Recreation Coordinator Twila Grout. Absent: Councilmember Sundberg B. Review Agenda Siakel moved, Labadie seconded, approving the agenda as presented. Motion passed 3/0. 2. MANOR PARK POND Planning Director Darling presented the council memo and gave background on what has been done to date. She said the water samples she took showed that the algae was not toxic. She said she spoke with the Minnehaha Creek Watershed District and they said the city has treatment options including applying algaecide, treating for the vegetation, depending on the type of vegetation, and dredging the pond. David Dillon, 5275 St. Albans Bay Road, asked where the water enters and leaves the pond. Darling replied that it comes from the drainage area, including the park and surrounding streets, and also from the Parkview development outflow. Mr. Dillon said he has his own pond and struggled with many of the same issues and offered to share with city staff his experience in managing his own pond. Mike Sayre, 20525 Manor Road, asked if there was any information on the particular species of plant or algae growth. Brown replied that not specifically, only that it was not toxic. Brown said given the time of year, that any treatment would not be done until 2019. Brown said that other considerations are the need to understand the nutrient loading on the pond, and to understand that the pond, at its deepest, is only four feet deep. Given the amount of silt over the years, Brown said it may be shallower in many places. Daniel Austin, 4860 Rustic Way asked if it was known if the water was non-toxic to animals. Darling replied the test was done to check toxicity and it was non-toxic. Mr. Austin asked if Parkview HOA has been told they cannot have a fountain in their pond. He said he recollects that they were told to discontinue that fountain several years ago because it did not allow the solids to settle out. Mr. Austin asked how long dredging was going to last. Brown replied that the program calls for a 20-year life on dredging. Julie Westerlund, 20425 Manor Road, asked it the pond had ever been dredged. She said that the pond used to have good plant growth, but with the algae bloom is not allowing sunlight to reach the bottom, and the pond cannot support desirable plant growth. Brown replied that the pond has never been dredged. CITY OF SHOREWOOD COUNCIL WORK SESSION MEETING MINUTES OCTOBER 9, 2018 Page 2 of 4 Linda Chryssomallis, 5220 St. Albans Bay Road, asked if the DNR has been involved with this pond. She said the DNR has a great deal of information on their website about the prevalence of this type of issue. Brown said that even though the pond water ends up in Lake Minnetonka, the DNR does not get involved in bodies of water this small. Lynn Tolman, 4995 Suburban Drive, asked why the DNR wouldn’t get involved because the water ends up in Lake Minnetonka. A member from the audience replied that all of the water in this area ends up in the Lake and they do not look at these small ponds. Mr. Dillon said that he did dredging as part of his pond project and it did help. He also suggested mechanical removal. Mr. Sayre said he heard Barley straw was also effective in lowering phosphorous. Brown replied he heard the same thing and that copper is also being used, as it presently used in an inlet on Silver Lake. Ms. Westerlund asked how the stormwater system is managed. Brown replied that there is an inventory of all ponds and there are approximately 43 city storm ponds. He said Manor park was the first pond considered for dredging seven or eight years ago. At the time he said there were not enough funds in the storm water enterprise fund to do this work, so it was never done. Lerud added that the storm water fund is entirely supported by the user fees charged on utility bills, and no tax dollars go into any of the city’s enterprise funds. Brown said the he would suspect that the phosphates found in this pond are also found in the other city ponds. Jeannie Gulstrand, 20635 Manor Road, thanked the council and staff for being here tonight for this important issue. She said it is obvious that the neighborhood believes this is an important issue. She said that the pond used to host a great deal of wildlife, but it no longer has any wildlife, and she encouraged the council to consider dredging. Kim Beauchamp, 5125 Suburban Drive, said that by not dredging, we are really putting off the inevitable and will eventually need to dredge and it will be more expensive to do this at a later day. Andy Knutson, 20615 Manor Road, asked how deep the pond would be after dredging. Brown said that is unknown. He said a survey would have to be done to determine the answer to that question. Councilmember Siakel said she thought this issue needed to be researched in greater detail before proceeding. She asked if the pond was constructed as a storm water pond, or it was a pond and then used as a storm water pond. She said that is important to know, as well as how the pond is affected, if it is, by the Parkview development. Several meeting attendees stated that it was a natural pond long before it was used as a storm pond. Mike Kaveney, 5200 St. Albans Bay Road said he is new to the area, but if this issue was discussed eight or nine years ago, the thought it was time to take some remedial action. Brown said that when this was talked about eight or nine years ago, he said the council at that time considered it, but due to limited finance, and considering other competing storm water needs, the council decided to not dredge the pond. Mayor Zerby said that staff typically brings an issue to the council with background and a recommendation for action, and the Council then discusses and decides on what projects the city will spend money. Mr. Dillon asked what the attendees of this meeting, as residents, can do to understand how the process works. Mayor Zerby said that this is a different council and a different staff. He said that the council is CITY OF SHOREWOOD COUNCIL WORK SESSION MEETING MINUTES OCTOBER 9, 2018 Page 3 of 4 here tonight and that demonstrates the council has interest in this issue. He said the neighbors are helping by being here now. Jack Kegel, 5085 St. Albans Bay Road, said he is grateful that the council is listening and was listening at the last meeting, and is appreciative of that. He said that what he senses tonight is an impatience in addressing the issue. He said that the problem is not necessarily the pond alone, but also the pond in the Parkview development. He said the pond appears to be decorative and not functioning as it should. Could another pond be constructed on the park property, near that pond, that could function as a storm water pond to provide additional treatment. He said the other thing to remember is once a project is done to clean up the pond, that it be proactively maintained. Darling said at the time the Parkview project was done, the storm water standards were not what they are now, but that is something that could be looked at as part of a solution. Council member Labadie said the city has been engaged in this issue. She thanked the neighborhood for being respectful and providing information to the council and staff. She said that no properties are assessed for these improvements, and the council represents the entire city and needs to weigh project options and recommendations when evaluating what work is to be done. Council member Siakel said that she believes a study is needed to better understand this issue. She said that timing might be an issue for 2019, and if the study took longer and pushed a project off, that perhaps the city could treat the algae next summer while the dredging plan is developed. Council member Johnson said that he is in a development with their own stormwater pond, so he is familiar with this issue. He said when their development pond went in, surrounding neighbors were at meetings asking questions and expressing concern. He asked if anyone has spoke with the Parkview HOA. The second question he had was in the flyer prepared by the neighborhood, the playground and walking trails were listed as additional issues. He asked what the issues were regarding those two items. The audience said that those were brought up for discussion, but the real interest was in getting the pond improved. A member of the audience asked if there were grant funds to pay for this work. Darling said the city has looked into grants to fund this work, but federal and state funds are focused on cleaning up ponds to encourage redevelopment. There was discussion about contacting the MCWD to see if they have grants to study the matter. A member of the audience asked if there was mention of this in the comprehensive plan. Darling replied that the Manor Park pond is listed on the project list contained in the comprehensive plan update. Mr. Dillon again offered any staff or council member interested to come by his property and look at his pond. Sam Prehall, 4828 Rustic Way, appreciated the work done so far, and he realizes the pond is a challenge. He said he grew up and worked in this park and when the city gets done the park will be an even greater amenity to the neighborhood. Lerud said that staff will discuss what was said tonight and make a recommendation to the council for some action before the end of the year. Mayor Zerby thanked everyone for coming tonight and for their opinions. CITY OF SHOREWOOD COUNCIL WORK SESSION MEETING MINUTES OCTOBER 9, 2018 Page 4 of 4 3. ADJOURN Siakel moved, Labadie seconded, Adjourning the City Council Work Session of October 9, 2018, at 6:30 P.M. Motion passed 4/0. ATTEST: Scott Zerby, Mayor Sandie Thone, City Clerk 2B CITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD CITY COUNCIL REGULAR MEETING COUNCIL CHAMBERS TUESDAY, OCTOBER 9, 2018 7:00 P.M. MINUTES 1. CONVENE CITY COUNCIL REGULAR MEETING Mayor Zerby called the meeting to order at 7:00 P.M. A. Roll Call Present. Mayor Zerby; Councilmembers Johnson, Labadie, Siakel, and Sundberg; Attorney Keane; City Administrator Lerud; City Clerk Thone; Finance Director Rigdon; Planning Director Darling; Director of Public Works Brown; and, City Engineer Fauske Absent: None. B. Review Agenda Sundberg moved, Labadie seconded, approving the agenda as presented. Motion passed 5/0. 2. CONSENT AGENDA Mayor Zerby reviewed the items on the Consent Agenda. Sundberg moved, Siakel seconded, Approving the Motions Contained on the Consent Agenda and Adopting the Resolutions Therein. A. City Council Regular Meeting Minutes of September 24, 2018 B. City Council Work Session Minutes of September 24, 2018 C. Approval of the Verified Claims List D. Approval of Probationary Appointment – Utility Operator E. Approve Request for Administrative Inspection Warrant for 5815 Club Lane, RESOLUTION NO. 18-100, “A Resolution to Inspect 5815 Club Lane.” F. Accept Hennepin County Recycling Container Grant, RESOLUTION NO. 18-101, “A Resolution Accepting Hennepin County Business Recycling Grant.” G. Approval of Tobacco Retailer Licenses, RESOLUTION NO. 18-102, “A Resolution Approving Licenses to Retailers to Sell Tobacco Products.” City Administrator Lerud noted that there was an oversight for item E. and noted that a correct copy was put on the Council dais prior to the meeting that added the words “and structural inspections” and requested that amendment be included with the motion. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES OCTOBER 9, 2018 Page 2 of 6 Motion passed 5/0. 3. MATTERS FROM THE FLOOR - None 4. PUBLIC HEARING - None 5. REPORTS AND PRESENTATIONS - None 6. PARKS A. Buckthorn Removal by Goat Planning Director Darling explained that staff had been researching an alternative and more natural means of removing buckthorn from City parks. She stated they found a number of cities had rented goats to come in and remove the buckthorn and noted that their digestive enzymes kill the seeds and the berries which prevents them from regrowing. She stated that they are considering using the goats on the small circular trail in Freeman Park as a trial. She noted that cost to rent the goats is $2,100 and they would be the park for a week and a half to two weeks. Staff is recommending approval. Councilmember Sundberg stated that she loves this idea and prefers it to chemical treatment. Councilmember Johnson stated that this was a trial project and asked if the idea was that if this is successful that the City will utilize the goats in other areas of the City. Planning Director Darling noted that it would be a possibility. Councilmember Labadie stated that she supports this idea and noted that her brother lives in California and they use this approach and it has worked well out there. Mayor Zerby asked if there would be any concern about noise from the goats since they will be present twenty-four hours a day. Planning Director Darling noted that goats are not particularly noisy and this particular area that has been chosen for the demonstration area is somewhat removed from the neighbors. Mayor Zerby confirmed that the path will be open during the demonstration and asked whether the electric fencing would be clearly marked. He also asked about the waste from the goats. Planning Director Darling stated that there will be signs on the fence about every twenty-five feet. She stated that the goat waste will essentially become fertilizer. Mayor Zerby asked if there would be notification given to the neighbors. Planning Director Darling stated that she was planning an e-mail blast. Councilmember Siakel expressed her support for this and asked if there would be someone there to watch over the goats and tend to them. Planning Director Darling stated that they will be physically monitored from time to time but will stay within the electric fencing. Mayor Zerby suggested that in addition to the e-mail blast a postcard be sent out to residents that will be within 500 feet of the goats and that the public safety officials be notified in the event one of the goats gets loose. Councilmember Johnson stated that he was not sure that there were any residents within 500 feet and suggested notifying a larger area. He stated that he would also like to see a sign explaining to residents that may be in the vicinity what the goats are doing and why they are there. He asked whether the Goat Dispatch company is insured. Planning Director Darling stated that she did not ask but will verify that. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES OCTOBER 9, 2018 Page 3 of 6 Sundberg moved, seconded by Labadie, to approve the use of goats to clear the buckthorn in a portion of Freeman Park. Motion carried 5/0. 7. PLANNING A. Report by Commissioner Reidel on the September 18, 2018 Planning Commission Meeting Commissioner Reidel gave an overview of the variance request at the September 18, 2018 meeting. He explained that the lot is very small and the existing residence, built in 1920, was recently demolished by a tree falling on it. He stated that the applicant is asking to build a structure mostly on the existing footprint, but would like to add a second story. He stated that the Planning Commission voted 4/0 to approve the request. B. Variance to Setback for 21055 Forest Drive Planning Director Darling explained the variance request included the lot area, lot width, setback for Woodend Place, and setback for the rear property line. She stated all the surrounding properties are developed as single-family homes and reiterated Commissioner Reidel’s explanation of the tree falling on the home and causing substantial damage. She explained that the applicant would like to remove the existing home and garage and construct a new home with two stall attached garage. She showed pictures of the proposed house from both Forest Drive and Woodend Place. She noted that the home was originally built without the modern zoning requirements which is why the lot size and the setbacks are not at current standards. She stated that the applicant has also put together plans for a rain garden to be installed on the Forest Drive side of the home that would reduce the impact to the neighborhood from stormwater runoff. She stated that the Planning Commission recommended approval and noted that there are a few conditions listed in the staff report. She stated that one neighbor appeared at the meeting and spoke favorably about the plans and the City also received three letters from other neighbors that also spoke in favor of the project. Cary Deacon, 21055 Forest Drive, stated that the tree that fell on the home was on City property and it cost him about $4,800 to remove it. He noted that the City has removed two other trees in the area, since the initial tree fell down. He asked if the City could have the Public Works Department handle grinding the stumps, since he paid almost $5,000 out of pocket for the initial tree removal. Councilmember Siakel asked how this had happened since the City had done a tree inventory and looked at right-of-way trees. Public Works Director Brown stated that the City did a tree survey that was conducted by S&S Tree Service and these trees did not appear on anything that looked like they were in imminent danger. He stated that he believes this tree came down in a high wind situation. He stated that it is the City’s understanding that even if a tree originates on one property and damages an adjacent property it is the responsibility of the owner with the damaged property to contact their insurance company to resolve the issue. Councilmember Siakel asked if the City was in possession of stump grinding equipment. Public Works Director Brown stated the city contracts out stump grinding, and when S & S Tree will be in the area taking care of ash tree removal, and they can accommodate Mr. Deacon’s request at that time. Sundberg moved, Siakel seconded, to approve RESOLUTION NO. 18-103, “A Resolution Granting Variances for Property Located at 21055 Forest Drive.” Motion carried 5/0. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES OCTOBER 9, 2018 Page 4 of 6 8. ENGINEERING/PUBLIC WORKS A. Approval of Change Order No. 1 for Boulder Bridge Exterior Project Director Brown explained that the Council had awarded a contract for work on the Boulder Bridge Well House on May 14, 2018 to Minnesota Roofing Company in the amount of $38,620. He explained that he had received an e-mail from Minnesota Roofing Company in September that they had made an error in their estimate, and had also had a supplier increase of about fifteen percent. He stated that staff had contacted the other original bidder who also explained that the supplier had increased the cost about fifteen percent. He stated that he received a competing bid before the meeting, but not in time to get it in the packet, but it was increased by seventeen percent over their original bid. He stated that staff had originally budgeted $60,000 for this project and the contractor has agreed to take a loss and complete the work for $46,000 for the base bid and have already signed the change order. Councilmember Johnson asked if the 15 to 17 percent increase in costs from the supplier were due to tariffs. Public Works Director Brown stated that he believes that is the case. Councilmember Siakel stated that she is okay with this because it is still below the original cost. Siakel moved, Sundberg seconded, Adopting RESOLUTION NO. 18-104, “A Resolution Accepting Change Order No. 1 for the Boulder Bridge Well Exterior Improvement Project.” Motion passed 5/0. Mayor Zerby stated that he thought the doors on this facility were also rusting and having problems. Public Works Director Brown stated that he is correct, but Public Works will handle the work. 9. GENERAL/NEW BUSINESS A. Shorewood Community and Event Center Signage City Administrator Lerud stated that he contacted Sign Source and asked for a quote on replacing the double-sided campus entry sign, the front sign on the building, and both sides of electronic sign on County Road Nineteen. He stated that the quote given by Sign Source was $5,581, which includes vinyl lettering for the front doors of the Shorewood Community and Event Center and City Hall. Councilmember Sundberg confirmed that the electronic sign would say Shorewood Community and Event Center. City Administrator Lerud noted that there is one other brown sign in the parking lot that will need to be replaced and Public Works will take care of that one. Councilmember Sundberg stated she would like to make sure the name Shorewood stays to ensure it is branded with the City’s name. Councilmember Johnson suggested it could say Shorewood Center, because that is essentially a shortened name for Shorewood Community and Event Center. Mayor Zerby asked if there could be another panel dropped down so the entire name could be included. Councilmember Labadie stated that she does not want to deviate from using the words “community and event center” and agrees with Councilmember Sundberg that keeping the name Shorewood on there will be beneficial. She stated that she likes Mayor Zerby’s idea of two lines of text at the top. City Administrator Lerud confirmed that the Council generally approved what was presented, but would like a quote for adding the additional text. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES OCTOBER 9, 2018 Page 5 of 6 Sundberg moved, Labadie seconded, to move forward with what was presented by Sign Source and ask for a quote to include two boards so the full name Shorewood Community and Event Center, can be included.” Motion passed 5/0. Mayor Zerby stated that he had noticed today that the City has added signage for the clearance levels and they have gotten to be very large. He asked if there was a way to reduce the size of the signs because it looks like the signs will be larger than the current Southshore Center sign. Public Works Director Brown stated that they will investigate. 10. STAFF AND COUNCIL REPORTS A. Administrator and Staff Other Director Brown stated the Public Works crew has finished the watermain flushing on the east side of the City and have begun work on the west side of the City. He noted that there will be updated information available on the website. He stated that the second sweeping has been completed so once there is a dry day, they will be able to move forward with the striping for the sealcoating project. He reiterated that the department will also start working on ash tree removal. Mayor Zerby asked if they would be taking care of the tree that is leaning on Birch Bluff. Director Brown stated that he has made note of that tree. City Engineer Fauske updated the Council on the communications plan that was discussed at the last meeting for street projects. She noted that letters have been sent out to residents of Enchanted and Shady Island to invite them to participate in an on-line survey. She stated that the question for them is regarding drainage and informed residents that the survey crew will be in the area to gather information and data. She stated that staff is finalizing a fact sheet for residents on Woodside, Glen Road, Manitou and Amlee Road, asking the watermain question. She expects this to be sent out later this week with an invitation to complete the on-line survey. She stated that there will be a link to the survey on the City’s website, as well as some paper copies available at City Hall. She gave an update as to what is happening with the street project and noted that the rain has certainly delayed the project. She noted that Yellowstone Trail was completed on August 31, 2018. She noted that paving was completed for Shorewood Lane last week and the boulevard restoration will be completed next week. She stated that Riviera Lane has been delayed because of the telecommunications line relocation which was been completed as of September 10, 2018, however transfer of service has not yet occurred. She stated that the other work is estimated to be completed by the end of October. Mayor Zerby asked what would happen if it continued to rain and the project runs out of time. City Engineer Fauske stated that they would keep going and continue making the road passable for residents and hope for better weather. Mayor Zerby asked if there would be any issue with public safety and questioned whether the large ladder truck would sink into the soil. Public Works Director Brown stated that he has driven down the road and is confident that it will support heavy vehicles. City Engineer Fauske stated that the issues with Mann Lane are the power and utility poles. She stated that Xcel Energy owns the poles and have started moving them and putting up the new poles, but they still need to get Mediacom to do some work on the poles. She stated that the contractor is not able to get into this corridor and work around the utility because the right-of-way is too narrow. She stated staff is putting CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES OCTOBER 9, 2018 Page 6 of 6 together a summary and will have it on the next agenda to discuss next steps. She stated that it still may be possible to complete the work this year, but it will be dependent on weather, both rain and snow. Mayor Zerby asked if the City has reached out to LMCC to try to apply some leverage to get Mediacom to do the work. He stated that he would also like the information because he may have some contacts that may be helpful. City Engineer Fauske stated that she has been in contact with Mediacom and the challenge appears to be that there is a new representative to coordinate this work. She stated that Mediacom was very responsive when they needed to move their utilities on Riviera Lane. City Clerk Thone noted that early voting is underway and it has been quite busy. Councilmember Sundberg asked if early votes are tallied or only if they are needed after the election. City Clerk Thone stated that they are counted the same as if you were voting on election day and will be counted along with all ballots on election day. City Administrator Lerud stated that there is an echo problem in the banquet room at the Southshore Center now that the carpet has been removed and the ceiling tiles have been replaced with plastic. He stated that he asked Twin City Acoustics to come take a look and their opinion was that there needs to be a ceiling tile to absorb sound. He stated that Joe Pazandak did some research and contacted Menard’s and found the City can get acoustic ceiling tiles that will absorb ninety percent of the sound for about $1,700. He stated that staff will handle the installation on their own. He stated that the City may want to consider also replacing the ceiling tile in the library at some point in the future and that will cost about $700. He asked if there was a consensus of the Council to take this approach. There was a consensus of the Council to proceed with the ceiling tiles from Menard’s. B. Mayor and City Council Mayor Zerby stated that he attended the fire open house and it was well attended and noted that there was also a police open house at the same time. 11. ADJOURN Johnson moved, Labadie seconded, Adjourning the City Council Regular Meeting of October 9, 2018, at 7:49 P.M. Motion passed 5/0. ATTEST: Scott Zerby, Mayor Sandie Thone, City Clerk #2C MEETING TYPE City of Shorewood Council Meeting Item Regular Meeting Title / Subject: Verified Claims Meeting Date: October 22, 2018 Prepared by: Michelle Nguyen, Senior Accountant Greg Lerud, City Administrator Joe Rigdon, Finance Director Attachments: Claims lists Policy Consideration: Should the attached claims against the City of Shorewood be paid? Background: Claims for council authorization. 64859 - 64898 & ACH 390,086.86 Total Claims $390,086.86 We have also included a payroll summary for the payroll period ending October 14, 2018. 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. 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Background: The attached 2018 proposed audit engagement letter from Abdo, Eick & Meyers LLP (AEM) details the audit objective, audit procedures, management responsibilities, and engagement-related administration, fees and other. The chart below details AEM base audit fees and Office of the State Auditor’s (OSA) reporting form fees for the past several years. An overall increase of 2.0% has been proposed by AEM for 2019. OSA Audit Audit Reporting Year Fees Form Total Increase 2014 $26,645 $630 $27,275 2015 $27,359 $660 $28,019 2.7% 2016 $28,112 $680 $28,792 2.8% 2017 $29,200 $710 $29,910 3.9% 2018 Proposed $29,750 $750 $30,500 2.0% Financial or Budget Considerations: The proposed cost of the 2018 financial statement audit, including the 2018 Office of the State Auditor’s reporting form is $30,500. The City’s 2019 proposed General Fund budget includes $31,500 for 2018 audit and related services. 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. Options: 1.Authorize the signing and returning of the 2018 audit engagement letter. 2.Do not authorize the signing and returning of the 2018 audit engagement letter. Recommendation / Action Requested: Staff recommends that the City Council authorize the Finance Director to sign and return the 2018 audit engagement letter. Next Steps and Timeline: If authorized, City personnel will confirm 2018 audit fieldwork dates in December 2018 and March 2019. Connection to Vision / Mission: The mandatory annual audit of the City’s financial statements is a component of sound financial management. October 8, 2018 Management, Honorable Mayor and City Council City of Shorewood Shorewood, Minnesota We are pleased to confirm our understanding of the services we are to provide the City of Shorewood (the City) for the year ended December 31, 2018. We will audit the financial statements of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information, including the related notes to the financial statements, which collectively comprise the basic financial statements of the City as of and for the year ended December 31, 2018. Accounting standards generally accepted in the United States of America provide for certain required the City financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. As part of our engagement, we will apply certain limited procedures to the City United States of America. These limited procedures will consist of inquiries of management regarding the methods of the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We will not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. The following RSI is required by U.S generally accepted accounting principles and will be subjected to certain limited procedures, but will not be audited: 1) Manag 2) Schedule of Net Pension Liability and Employer's Contributions We have also been engaged to report on supplementary information other than RSI that accompanies the City statements. We will subject the following supplementary information to the auditing procedures applied in our audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America, and we will provide an opinion on it in relation to the financial statements as a whole, in a report tements: 1) Combining and Individual Fund Financial Statements and Schedules The following other information accompanying the financial statements will not be subjected to the auditing procedures applied in our audit of the financial statements, and our ance on that other information. 1) Introductory Section 2) Statistical Section ALG-CL-1.1 GAAS Eng Ltr October 8, 2018 Page 2 Audit Objective The objective of our audit is the expression of opinions as to whether your financial statements are fairly presented, in all material respects, in conformity with generally accepted accounting principles and to report on the fairness of the supplementary information referred to in the second paragraph when considered in relation to the financial statements as a whole. Our audit will be conducted in accordance with auditing standards generally accepted in the United States of America and will include tests of the accounting records and other procedures we consider necessary to enable us to express such opinions. We will issue a written report upon completion of our audit of the City report will be addressed to the City Council of the City. We cannot provide assurance that unmodified opinions will be expressed. Circumstances may arise in which it is necessary for us to modify our opinions or add emphasis-of-matter or other-matter paragraphs. If our opinions are other than unmodified, we will discuss the reasons with you in advance. If, for any reason, we are unable to complete the audit or are unable to form or have not formed opinions, we may decline to express opinions or may withdraw from this engagement. Audit Procedures-General An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; therefore, our audit will involve judgment about the number of transactions to be examined and the areas to be tested. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We will plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether from (1) errors, (2) fraudulent financial reporting, (3) misappropriation of assets, or (4) violations of laws or governmental regulations that are attributable to the government or to acts by management or employees acting on behalf of the government. Because of the inherent limitations of an audit, combined with the inherent limitations of internal control, and because we will not perform a detailed examination of all transactions, there is a risk that material misstatements may exist and not be detected by us, even though the audit is properly planned and performed in accordance with U.S. generally accepted auditing standards. In addition, an audit is not designed to detect immaterial misstatements, or violations of laws or governmental regulations that do not have a direct and material effect on the financial statements. However, we will inform the appropriate level of management of any material errors, fraudulent financial reporting, or misappropriation of assets that come to our attention. We will also inform the appropriate level of management of any violations of laws or governmental regulations that come to our attention, unless clearly inconsequential. Our responsibility as auditors is limited to the period covered by our audit and does not extend to any later periods for which we are not engaged as auditors. Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts, and may include tests of the physical existence of inventories, and direct confirmation of receivables and certain other assets and liabilities by correspondence with selected individuals, funding sources, creditors, and financial institutions. We will request written representations from your attorneys as part of the engagement, and they may bill you for responding to this inquiry. At the conclusion of our audit, we will require certain written representations from you about the financial statements and related matters. Audit Procedures-Internal Control Our audit will include obtaining an understanding of the government and its environment, including internal control, sufficient to assess the risks of material misstatement of the financial statements and to design the nature, timing, and extent of further audit procedures. An audit is not designed to provide assurance on internal control or to identify deficiencies in internal control. Accordingly, we will express no such opinion. However, during the audit, we will communicate to management and those charged with governance internal control related matters that are required to be communicated under AICPA professional standards. Audit Procedures-Compliance As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we will perform tests of the City compliance with the provisions of applicable laws, regulations, contracts, and agreements. However, the objective of our audit will not be to provide an opinion on overall compliance and we will not express such an opinion. ALG-CL-1.1 GAAS Eng Ltr October 8, 2018 Page 3 Other Services We will also prepare a general ledger trial balance for use during the audit. Our preparation of the trial balance will be limited to formatting information in the general ledger into a working trial balance. As part of the audit, we will assist with preparation of your financial statements of the City in conformity with U.S. generally accepted accounting principles based on information provided by you. We will also use the financial statements to complete the Office of the State Auditors' Reporting Forms. Management Responsibilities Management is responsible for designing, implementing and maintaining effective internal controls relevant to the preparation and fair presentation of financial statements that are free from material misstatements, whether due to fraud or error, including monitoring ongoing activities; for the selection and application of accounting principles; and for the preparation and fair presentation of the financial statements in conformity with U.S. generally accepted accounting principles. Management is also responsible for making all financial records and related information available to us and for the accuracy and completeness of that information. You are also responsible for providing us with (1) access to all information of which you are aware that is relevant to the preparation and fair presentation of the financial statements, (2) additional information that we may request for the purpose of the audit, and (3) unrestricted access to persons within the government from whom we determine it necessary to obtain audit evidence. Your responsibilities include adjusting the financial statements to correct material misstatements and confirming to us in the management representation letter that the effects of any uncorrected misstatements aggregated by us during the current engagement and pertaining to the latest period presented are immaterial, both individually and in the aggregate, to the financial statements taken as a whole. You are responsible for the design and implementation of programs and controls to prevent and detect fraud, and for informing us about all known or suspected fraud affecting the government involving (1) management, (2) employees who have significant roles in internal control, and (3) others where the fraud could have a material effect on the financial statements. Your responsibilities include informing us of your knowledge of any allegations of fraud or suspected fraud affecting the government received in communications from employees, former employees, regulators, or others. In addition, you are responsible for identifying and ensuring that the government complies with applicable laws and regulations. You are responsible for the preparation of the supplementary information in conformity with U.S. generally accepted accounting principles. You agree to include our report on the supplementary information in any document that contains and indicates that we have reported on the supplementary information. You also agree to include the audited financial statements with any presentation of the supplementary information that includes our report thereon. Your responsibilities include acknowledging to us in the representation letter that (1) you are responsible for presentation of the supplementary information in accordance with GAAP; (2) you believe the supplementary information, including its form and content, is fairly presented in accordance with GAAP; (3) the methods of measurement or presentation have not changed from those used in the prior period (or, if they have changed, the reasons for such changes); and (4) you have disclosed to us any significant assumptions or interpretations underlying the measurement or presentation of the supplementary information. With regard to the electronic dissemination of audited financial statements, including financial statements published electronically on your website, you understand that electronic sites are a means to distribute information and, therefore, we are not required to read the information contained in these sites or to consider the consistency of other information in the electronic site with the original document. You agree to assume all management responsibilities for financial statement preparation services and any other nonattest services we provide; oversee the services by designating an individual, preferably from senior management, with suitable skill, knowledge, or experience; evaluate the adequacy and results of the services; and accept responsibility for them. ALG-CL-1.1 GAAS Eng Ltr October 8, 2018 Page 4 Engagement Administration, Fees, and Other We may from time to time, and depending on the circumstances, use third-party service providers in serving your account. We may share confidential information about you with these service providers, but remain committed to maintaining the confidentiality and security of your information. Accordingly, we maintain internal policies, procedures, and safeguards to protect the confidentiality of your personal information. In addition, we will secure confidentiality agreements with all service providers to maintain the confidentiality of your information and we will take reasonable precautions to determine that they have appropriate procedures in place to prevent the unauthorized release of your confidential information to others. In the event that we are unable to secure an appropriate confidentiality agreement, you will be asked to provide your consent prior to the sharing of your confidential information with the third-party service provider. Furthermore, we will remain responsible for the work provided by any such third-party service providers. We understand that your employees will prepare all cash, accounts receivable, or other confirmations we request and will locate any documents selected by us for testing. The audit documentation for this engagement is the property of Abdo, Eick & Meyers, LLP and constitutes confidential information. However, subject to applicable laws and regulations, audit documentation and appropriate individuals will be made available upon request and in a timely manner to any Regulator or its designee. We will notify you of any such request. If requested, access to such audit documentation will be provided under the supervision of Abdo, Eick & Meyers, LLP personnel. Furthermore, upon request, we may provide copies of selected audit documentation to any Regulator or its designee. The Regulator or its designee may intend or decide to distribute the copies or information contained therein to others, including other governmental agencies. We expect to begin our audit on approximately March 11, 2019 and to issue our reports no later than June 30, 2019. Andrew K. Berg, CPA is the engagement partner and is responsible for supervising the engagement and signing the report or authorizing another individual to sign it. Our fee for these services will be as follows: Audit $ 29,750 2018 750 Total $ 30,500 You may also be billed for travel and other out-of-pocket costs such as report production, typing, postage, etc. if not included in the fee listed above. The fee is based on anticipated cooperation from your personnel and the assumption that unexpected circumstances will not be encountered during the engagement. If significant additional time is necessary, we will discuss it with you and arrive at a new fee before we incur the additional costs. Our invoices for these fees will be rendered each month as work progresses and are payable on presentation. Amounts not paid within 30 days from the invoice date will be subject to a late payment charge of .66 percent per month (8 percent per year). If for any reason the account is turned over to collections, additional fees will be added to cover collections cost. In accordance with our Firm policies, work may be suspended if your account becomes 60 days or more overdue and will not be resumed until your account is paid in full. If we elect to terminate our services for nonpayment, our engagement will be deemed to have been completed upon written notification of termination, even if we have not completed your audit. You will be obligated to compensate us for all time expended and to reimburse us for all out-of-pocket expenditures through the date of termination. ALG-CL-1.1 GAAS Eng Ltr October 8, 2018 Page 5 Except in the event of your failure to make a payment when due, in the event of a dispute related in any way to our services, our Firm and you agree to discuss the dispute and, if necessary, to promptly mediate in a good faith effort to resolve. We will agree on a mediator, but if we cannot, either of us may apply to a court having personal jurisdiction over the parties litigation. In order to allow time for the mediation, any applicable statute of limitations shall be tolled for a period not to exceed 120 days from the date either of us first requests in writing to mediate the dispute. The mediation shall be confidential in all respects, as allowed or required by law, except our final settlement positions at mediation shall be n the event you fail to make a payment for services or to reimburse for costs advanced by the Firm on your behalf, the Firm reserves the right to take all legally permissible action, including commencement of litigation in lieu of mediation, and shall have the right to collect its costs, including activities. We appreciate the opportunity to be of service to the City and believe this letter accurately summarizes the significant terms of our engagement. If you have any questions, please let us know. If you agree with the terms of our engagement as described in this letter, please electronically sign this letter Sincerely, ABDO, EICK & MEYERS, LLP Certified Public Accountants & Consultants RESPONSE: This letter correctly sets forth the understanding of the City of Shorewood. By: {{_es_:signer1:signature}} Title: {{_es_:signer1:title}} ALG-CL-1.1 GAAS Eng Ltr # 2E MEETING TYPE City of Shorewood Council Meeting Item REGULAR Title / Subject: All Hazard Mitigation Plan Meeting Date: October 22, 2018 Prepared by: Greg Lerud Attachments: SLMPD Chief memo, Resolution Attached to this memo is a memo from Mike Meehan, South Lake Minnetonka Police Chief, regarding recertification of the Hennepin County All-Hazard Mitigation plan. Given the length of the plan it is not reproduced for the agenda, but the link to view it is: https://www.hennepin.us/residents/emergencies/emergency-management If you have questions about Chief Meehan’s memo, or the plan, please do not hesitate to contact him. 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. 18 –105 ADOPTION OF THE HENNEPIN COUNTY ALL-HAZARD MITIGATION PLAN WHEREAS, the City of Shorewood has participated in the hazard mitigation planning process as established under the Disaster Mitigation Act of 2000; and, WHEREAS, the Act establishes a framework for the development of a multi- jurisdictional County Hazard Mitigation Plan; and, WHEREAS, the Act as part of the planning process requires public involvement and local coordination among neighboring local units of government and businesses; and, WHEREAS, the Hennepin County Plan includes a risk assessment including past hazards, hazards that threaten the County, an estimate of structures at risk, a general description of land uses and development trends; and, WHEREAS, the Hennepin County Plan includes a mitigation strategy including goals and objectives and an action plan identifying specific mitigation projects and costs; and, WHEREAS, the Hennepin County Plan includes a maintenance or implementation process including plan updates, integration of the plan into other planning documents and how Hennepin County will maintain public participation and coordination; and, WHEREAS, the Plan has been shared with the Minnesota Division of Homeland Security and Emergency Management and the Federal Emergency Management Agency for review and comment; and, WHEREAS, the Hennepin County All-Hazard Mitigation Plan will make the county and participating jurisdictions eligible to receive FEMA hazard mitigation assistance grants; and, WHEREAS, this is a multi-jurisdictional Plan and cities that participated in the planning process may choose to also adopt the County Plan, NOW THEREFORE BE IT RESOLVED that the City of Shorewood supports the hazard mitigation planning effort and wishes to adopt the Hennepin County All-Hazard Mitigation Plan. Adopted this 22nd day of October, 2018. ______________________________ Scott Zerby, Mayor ATTEST __________________________ Sandie Thone, City Clerk City of Shorewood Council Meeting Item 2F Title / Subject: Resolution Accepting Donations to Arctic Fever Event Meeting Date: Monday, October 22, 2018 MEETING TYPE Prepared by: Sandie Thone, City Clerk Regular Meeting Reviewed by: Twila Grout, Park and Recreation Coordinator Attachments: Resolution Policy Consideration: Pursuant to Minnesota State Statutes sections §465.03 and §471.17 all donations or gifts of real and personal property, including donations for the benefit of public recreational services, must be accepted by the city council. Background: The following persons or entities have offered to contribute the cash amounts set forth below, for the purpose of the 2019 Arctic Fever Event being held on January 18 to January 20, 2019: Name of Donor Amount HomeAdvisor $100.00 Mediacom $100.00 Financial Considerations: This donation will help to cover expenses incurred for the 2019 Arctic Fever Event. Action Requested: Staff respectfully recommends the city council approve the Resolution Accepting Donations as Delineated in the Resolution to the 2019 Arctic Fever Event and direct staff to send a thank you note to all donors. Motion, second and two-thirds majority vote required. Connection to Vision/Mission: Consistency in 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. 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 RESOLUTION 18- A RESOLUTION ACCEPTING DONATIONS TO THE CITY OF SHOREWOOD 2019 ARCTIC FEVER EVENT WHEREAS, the City of Shorewood is generally authorized to accept donations of real and personal property pursuant to Minnesota Statutes Section 465.03 for the benefit of its citizens, and is specifically authorized to accept gifts and is authorized to accept gifts for the benefit of their public recreational services pursuant to Minnesota Statutes section 471.17; and WHEREAS, the following persons and entities have offered to contribute the cash amounts set forth below to the city: Name of Donor Amount HomeAdvisor $100.00 Mediacom $100.00 WHEREAS, the terms or conditions of the donations are to be used for the 2019 Arctic Fever Event; and WHEREAS, all such donations have been contributed to the city for the benefit of its citizens, as allowed by law; and WHEREAS, the City Council finds that it is appropriate to accept the donations offered. NOW THEREFORE , BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHOREWOOD, MINNESOTA AS FOLLOWS: 1. The donations described above are accepted and shall be used to establish and/or operate services either alone or in cooperation with others, as allowed by law. 2. The city clerk is hereby directed to issue receipts to each donor acknowledging the city’s receipt of the donor’s donation. Passed by the City Council of Shorewood, Minnesota this 22nd day of October 2018. __________________________ Scott Zerby, Mayor Attest: ___________________________ Sandie Thone, City Clerk #6A MEETING TYPE City of Shorewood Council Meeting Item Regular Meeting Title / Subject: Review and Accept Proposal for PIP Rubber Surface for Badger Park Playground Meeting Date: October 22, 2018 Prepared by: Marie Darling, Planning Director Attachments: Estimates Resolution Approving Purchase Policy Consideration: Should the City Council enter into a purchase agreement to provide PIP Rubber Surface for the area beneath the Badger Park Playground? Background: The City Council has directed the use of poured in place (PIP) rubber for the surface material at Badger Park. At this point, staff requests that the City Council authorize the purchase so that the project is ready to go after grading and concrete work is complete in the Spring of 2019. The attached estimate is part of a pre-bid contract price that includes the aggregate underneath the surface and the PIP rubber surface and installation. It does not include the concrete curb that will surround the surface. The cost of the curb would be part of the larger concrete/asphalt project that would also include the trails. Financial or Budget Considerations: Purchasing the surface this year locks in the 2018 price. The estimate would be for 50 percent down and 50 percent a month after the playground is installed. Recommendation / Action Requested: Staff recommends acceptance of the estimate from Minnesota/Wisconsin Playground. Next Steps and Timelines: The manufacturer has indicated that the City has time to make a color selection. On their October 23, 2018 agenda, the Parks Commission will review options for color and recommend one to the City Council for review at an upcoming meeting. Connection to Vision / Mission: A variety of attractive amenities. 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. S:\Parks\Badger Park\2017-2018 rehab\Council CAF and Resolution\CAF 181022 Authorization Purchase of PIP surface.docx Minnesota / Wisconsin Playground 5101 Highway 55, Suite 6000 QUOTE Golden Valley, Minnesota 55422 #23025 Ph. 800-622-5425 | 763-546-7787 Fax 763-546-5050 | info@mnwiplay.com 10/05/2018 Badger Park D9023H5 - PIP Option Ship To Zip: 55331 City of Shorewood Attn: Marie Darling 5755 Country Club Road Shorewood, MN 55331 Phone: 952-960-7912 mailto:mdarling@ci.shorewood.mn.us QuantityQuantityQuantityQuantityPart #Part #Part #Part #DescriptionDescriptionDescriptionDescriptionUnit PriceUnit PriceUnit PriceUnit PriceAmountAmountAmountAmount 1PIPSport Surface Specialties - Lump Sum -$88,845.00$88,845.00 Poured in place synthetic safety surface depth varies, 50% black and 50% standard color, aromatic binder for 6011 sq. ft. area as shown per plan drawing 1PIP DISPOSALSport Surface Specialties - Lump Sum -$820.00$820.00 Disposal of packaging and waste materials. 1SECURITY.Sport Surface Specialties - Lump Sum -$880.00$880.00 Security for curing of rubber.. 1AGGREGATESport Surface Specialties - Lump Sum -$16,906.00$16,906.00 Aggregate base for poured in place safety surface at a 4" depth. SubTotal:$107,451.00 Total Amount:$107,451.00 This quotation is subject to current Minnesota/Wisconsin Playground policies as well as the following terms and conditions. Our quotation is based on shipment of all items at one time to a single destination, unless noted, and changes are subject to price adjustment. Purchases in excess of $1,000.00 to be supported by your written purchase order made out to Minnesota/Wisconsin Playground. Indemnification; Owner/Owner's Representative will indemnify and hold Minnesota Playground, Inc., dba, Minnesota Wisconsin Playground (MWP), harmless for all claims, damages and related costs, including reasonable legal fees and costs, arising out of Owner/Owner's Representative's negligence or noncompliance with any of its commitments under this document.MPWwill indemnify and hold Owner/Owner's Representative harmless for all claims, damages and related costs, including reasonable legal fees and costs, arising out of MWP's negligence or noncompliance with any of its commitments under this document. A tax-exempt certificate is needed at time of order entry for all orders whether from tax-supported goverment agencies or not. Sales tax, if applicable, will be added at time of invoice unless a tax exempt certificate is provided at time of order entry. Payment terms: 50% down prior to December 1 to "lock" pricing. Balance net 30 days subject to approval by GameTime Credit Manager. A 1.5% per month finance charge will be imposed on all past due accounts. Equipment shall be invoiced separately from other services and shall be payable in advance of those services and project completion. Retainage not accepted. Page 1 of 2 Minnesota / Wisconsin Playground 5101 Highway 55, Suite 6000 QUOTE Golden Valley, Minnesota 55422 #23025 Ph. 800-622-5425 | 763-546-7787 Fax 763-546-5050 | info@mnwiplay.com 10/05/2018 Badger Park D9023H5 - PIP Option 1. See product specifications for specific detailed product information, installation information, compliance documentation, and appropriate certifications. Standard warranty included unless otherwise noted. 2. Quote is based on the information provided and is subject to change based on final installation unless indicated otherwise, in writing. Any changes or additions to this proposal, to include materials, will affect pricing. 3. Sub-base provided by others is the responsibility of the owner and/or others. The substrate must meet specifications including drainage and grade requirements. There is no demolition or site-work included in the scope of this quote unless otherwise noted above. 4. Site access must be a minimum of 25' for trucks and mixer, with no stairs. Irrigation, sprinkler, and/or water systems must be shut off 24 hours before install and remain off until 24 hours after installation is complete. 5. Additional charges for downtime/stand-by may be assessed in the event that installation is delayed due to the site not being ready as scheduled or if installation is interrupted for reasons other than those related to weather or general public emergencies. 6. Security and waste removal during install and upon completion is the responsibility of the owner, unless specified otherwise in Project Scope. 7. Installations scheduled after 9 months of proposal acceptance may be subject to price adjustments. 8. Normal lead time is 4 weeks from order date. However, scheduling and crew deployment is subject to local weather conditions including temperature and precipitation constraints. See appropriate specification for temperature and precipitation constraints. 9. The scope of this quote does not include on-site fall attenuation testing. We do have independent laboratory testing available upon request. 10. We are not responsible for the reviewing and interpreting of contracts unless approved by Director of Surfacing or otherwise noted in the Project Scope. Installation Exclusions, unless otherwise noted herein; Permits/Licensing, State or Federal (Davis Bacon) Wages, Demolition, Builders Risk Insurance, Union Fees (PLA/PSA Contracts),Drainage, Additionally Insured, Engineering, Waste/Dumpsters, OCIP, Fall Height/ Attenuation Testing, Rooftop Installations, Waiver of Subrogation, Fencing/Security, Extended Warranty, Bonding, Excavation and Site Work/ Preparation, Site Restoration. The following is a non-inclusive list of items that may result in additional charges (Change Order) where work cannot commence until Change Order(s) are fully executed. Sub Base not to installation standards Installation of Play Equipment not complete, resulting in return trip Poor Site Access not identified in Proposal or Project Scope Customer requirement/request for work on weekends, holidays, or overtime Any and all scope variations not agreed upon in writing Security that was not included in the base quote Waste Removal that was not included in the base quote Acceptance of quotation: Accepted By (printed): _________________________________ P.O. No: _____________________________ Signature: ___________________________________________ Date: ________________________________ Title: _______________________________________________ Phone: ______________________________ $107,451.00 Facsimile: __________________________________________ Purchase Amount: Page 2 of 2 CITY OF SHOREWOOD RESOLUTION NO. 18- A RESOLUTION AUTHORIZING PURCHASE OF PLAYGROUND SURFACE WHEREAS , the City of Shorewood (“City”) desires to redevelop Badger Park and has spent considerable time and effort reviewing concept site plans and playground equipment; and WHEREAS , the City budgeted funds in the 2018 and 2019 capital improvements plan for the playground rehab and related expenses; and WHEREAS , the City reviewed has received a quote for the playground surface under the state equipment bids from Minnesota/Wisconsin Playground; NOW, THEREFORE, IT IS RESOLVED that the City Council of the City of Shorewood hereby accepts the submitted quote of $107,451 for the Badger Park playground surface, subsurface aggregate, and installation by Minnesota/Wisconsin Playground. ADOPTED BY THE CITY COUNCIL OF THE CITY OF SHOREWOOD this 22nd day of October, 2018. ___________________________ Scott Zerby, Mayor ATTEST: ________________________________ Sandie Thone, City Clerk CITY OF SHOREWOOD COUNCIL CHAMBERS PLANNING COMMISSION MEETING 5755 COUNTRY CLUB ROAD TUESDAY, OCTOBER 2, 2018 7:00 P.M. MINUTES CALL TO ORDER Chair Maddy called the meeting to order at 7:01 P.M. ROLL CALL Present: Chair Maddy; Commissioners Davis, Eggenberger, Gorham, and Riedel; Planning Director Darling; and, Council Liaison Johnson Absent: None 1. APPROVAL OF AGENDA Davis moved, Eggenberger, seconded, approving the agenda for October 2, 2018, as presented. Motion passed 5/0. 2. APPROVAL OF MINUTES  September 18, 2018 Davis moved, Reidel seconded, approving the Planning Commission Meeting Minutes of September 18, 2018, as presented. Motion passed 4/0/1 (Commissioner Eggenberger abstained due to his absence at the meeting.) 3. PUBLIC HEARINGS - None 4. OTHER BUSINESS A. VARIANCE FOR SIGNAGE AT STARBUCK’S COFFEE Applicant: Hilton Displays, Inc., rep. Watson Vinehill, LLC Location: 19285 State Highway 7 Director Darling stated that this is a request to allow two additional free-standing signs in the drive-thru area at the Starbuck’s at 19285 State Highway 7. One sign would be a pre-sale menu for product advertising and the second would be a digital order confirmation monitor. She gave a brief overview of the information submitted with their variance request on signage decreasing wait times but noted that there was not a lot of detailed information indicating where the data and studies were gathered. She reviewed the criteria that staff considered in reviewing this application. Staff is recommending approval of the digital order screen, and recommending denial of the additional pre-sale sign. She noted that the City did receive a letter signed by four area neighbors that are opposed to having additional signage in the drive-thru area. She stated that she wanted to clarify one point raised in the letter that indicated that the traffic study for the project was deliberately delayed until the high school was closed for summer. She stated that the traffic study was conducted before school was let out for the season. Chair Maddy stated that he believes the City also made sure that the study was not conducted during spring break. CITY OF SHOREWOOD PLANNING COMMISSION MEETING OCTOBER 2, 2018 Page 2 of 5 Commissioner Reidel confirmed that staff was recommending denial of the pre-sale sign because of skepticism that it may help improve wait times. Director Darling stated that she is skeptical that it would have a positive impact on wait times, or in other words that it would increase wait times. Commissioner Reidel asked if there were any other drive-thrus in the City. Director Darling stated that the City has a very limited amount of acreage that is non-residential and the only other drive-thru is Tino’s which is next door to this property. Commissioner Reidel stated that when the code was written there was not a huge base of drive-thru windows and suggested that the current technology was not in place when it was adopted. Director Darling stated that the current code was adopted in 1985. Commissioner Eggenberger asked about the alternative suggestion made by staff. Director Darling stated that she found a few examples of combining the menu board with pre-sale board. She also stated that the Commission could allow them to have a maximum of 32 square feet of signage and allow the area to be split between the two signs as they deem necessary. Commissioner Reidel confirmed that the City currently allows one sign and this applicant is asking for a total of three signs. Chair Maddy asked about the comment in the report that allowing this signage could alter the character of the area. Director Darling stated that her concern is that there is a drive-thru sign next door that is in compliance with the current ordinance and now this business comes in and is allowed additional signage. She stated that she believes the Commission should consider this application based on the current codes and if the Commission thinks the code needs updating, it can approve the variance and update the code later to be consistent. Commissioner Reidel asked if staff had looked more deeply into the order confirmation monitors other than what was included in the packet. Director Darling stated that she feels the confirmation monitors clarify orders and make it a quicker process in the drive-thru line. Maddie Keller, Hilton Displays, representing Starbuck’s, stated that the pre-sale board is designed to feature things like seasonal items and bakery items. Commissioner Reidel asked about the sign positioning and how prominent they would be to the surrounding area. Ms. Keller stated that the visibility will depend on the landscaping and she is not sure what the plans are for that. She stated that they are designed to be very sleek and mainstream and are done in black. Commissioner Reidel asked if there would be night time light pollution from the signage. CITY OF SHOREWOOD PLANNING COMMISSION MEETING OCTOBER 2, 2018 Page 3 of 5 Ms. Keller stated that the menu boards are back lit illuminated so they can be seen while the store is open and believes they are open until 10:00 p.m. Commissioner Eggenberger asked if the corporate signage would allow for the suggested alternative the Commission was discussing with two total menu boards. Ms. Keller stated that she would have to discuss the possibility of going to the two-panel menu board plus the pre-menu board, rather than the three-panel menu board that is currently proposed, but that would be up to Starbuck’s. She noted that the digital order confirmation board will be located right next to the menu board so people can be looking at both of them as they are placing their order. Commissioner Reidel asked whether the order confirmation board should really be considered as signage. Ms. Keller stated that she didn’t personally think it should be, but Hilton Displays treats it as signage. She noted that the speaker to place orders was placed at the bottom of the order confirmation screen rather than a speaker post. She stated that the white lettering on the canopy that says Starbuck’s Coffee can be removed. Commissioner Reidel stated that he is skeptical of staff’s position regarding the wait times because he would defer to the corporation information that says this will decrease wait times. He stated that it is extra signage that our code does not allow. He stated that he feels the strongest argument for the variance is that the traffic situation is bad and this could help. Director Darling stated that she has asked for more documentation on the claim that it decreases wait times, but did not receive anything specific. She confirmed that he was talking about the pre-sale sign. Commissioner Reidel stated that he was actually referring to the digital confirmation sign and feels the pre-sale sign is simply there to increase their sales. He stated that he thinks the digital confirmation screen will help decrease wait times because there shouldn’t be any mistakes with the orders. Ms. Keller noted that the pre-sale menu can also help decrease wait times because people that see something they want on the pre-sale menu do not have to look at the whole menu board and can just say, for example, give me a pumpkin spice latte. Commissioner Eggenberger noted that there was a picture of the Starbuck’s in Chanhassen included in the packet and asked whether this location had four signs. Commissioner Davis noted that there was also a sandwich board in addition to those signs. Commissioner Eggenberger asked if the Commission denied this variance application, would the applicant be allowed to put up temporary signs. Director Darling stated that temporary signs are regulated by permit and are permitted for specific amount of time. Chair Maddy stated that the pre-sale menu board actually has more items on it than he expected and it is not just one or two items, so he can see how it may actually decrease the order times when people get to the menu board. He noted that the Chanhassen pre-sale board has about sixteen items listed on the board. Commissioner Reidel stated that decreasing wait times due to the traffic in the area seems to be a good reason for allowing the variance. He asked what the combined square footage would be for the total of all the signs that Starbuck’s is proposing. CITY OF SHOREWOOD PLANNING COMMISSION MEETING OCTOBER 2, 2018 Page 4 of 5 Ms. Keller stated that the pre-menu board is 6.72 sq. ft. and the menu board is 22.9 sq. ft. She noted that the digital confirmation board is also about 6 sq. ft. which would put them a bit over the allowed 32 sq.ft. in the current City code. Commissioner Gorham asked why the Commission was only talking about the screen when the proposal is for a 10-foot sign. Commissioner Reidel stated that if Starbuck’s could reduce the menu board to two panels, he feels all of the signage requested could come in below the 32 sq. ft. requirement. He suggested allowing the variance to include three signs, but keep the total square footage amount allowed as the same. Commissioner Eggenberger stated that the combined square footage is pretty close to what is allowed, if the digital confirmation board is taken out, which he does not really consider as signage. He does not think the inclusion of a pre-menu board changes the character of the area. He stated that he is in favor of approving this variance but would like landscaping that blocks the view from Highway 7. Chair Maddy asked if the Commission was in agreement that the digital confirmation board is not to be included as a sign, but as a piece of technology. He suggested that the Commission may want to look into an ordinance amendment to address this issue. Commissioner Davis confirmed that the illuminated directional signs and pylons that contain the logo were not considered signs. She stated to her, those look like signs. Director Darling noted that directional signs may have three square feet, including the directional information. Commissioner Reidel moved to recommend that the Council approve the variance request for two additional signs, subject to the limit of the total area of all three signs, counting the digital order board as a sign, not to exceed 32 square feet. Motion died for lack of a second. The Commission discussed the different signs and menu board options. Commissioner Eggenberger moved, Reidel seconded to recommend approval of variances to allow:  an additional freestanding sign to be used as a pre-sale sign as long as the total square footage of the pre-sale and menu boards does not exceed 32 square feet  an additional freestanding sign to be used as a digital order confirmation. Motion carried 4/1 (Gorham opposed). Director Darling noted that this request would be on the Council agenda for October 22, 2018. 5. MATTERS FROM THE FLOOR - None 6. REPORTS • Liaison to Council Director Darling stated that there were no Planning Commission items at the last Council meeting. She stated that there were a number of people who spoke during Matters from the Floor with concerns about CITY OF SHOREWOOD PLANNING COMMISSION MEETING OCTOBER 2, 2018 Page 5 of 5 Grant Street drainage issues, a candidate for office, concerns regarding the Manor Park Pond, and the Glen Road street reconstruction project. She reviewed the items on the upcoming Council agenda. She reminded the Commission about the special meeting on October 30, 2018 to hold the public hearing for the Comprehensive Plan. • Draft Next Meeting Agenda Director Darling stated that for the November meeting, there is one variance application that has been submitted and an application for subdivision with a PUD. 7. ADJOURNMENT Eggenberger moved, Reidel seconded, adjourning the Planning Commission Meeting of October 2, 2018, at 8:16 P.M. Motion passed 5/0. #7B MEETING TYPE City of Shorewood Council Meeting Item Regular Meeting Title / Subject: Hilton Displays –Variance for two extra freestanding signs Property Address: 19285 State Highway 7 (Starbucks) Meeting Date: October 22, 2018 Prepared by: Marie Darling, Planning Director Review Deadline: December 20, 2018 Attachments: Correspondence Received Planning Staff Memorandum Resolution Policy Consideration: Should the City grant variances to allow additional freestanding signage for the Starbucks drive-thru? Background: See attached Planning staff memorandum for detailed background on this item. The request is for two additional signs: a pre-sale sign and a digital order confirmation monitor. At the October 2, 2018 meeting, the Planning Commission voted four in favor; one opposed to recommend approval of the request. The applicant was present at the meeting; no one else requested to speak. As the Planning Commission reviewed the request, four of the Commissioners concluded that the application was the result of a sign code that does not offer enough flexibility to incorporate additional technological advances. They found that the digital order confirmation sign would speed up orders at the order station by reducing order errors and that the pre-sale sign could help decrease waits in the drive-thru lane by helping customers make a decision before they reach the order station. They further found that the applicant meets the criteria for a variance, and with the condition that the area of the two freestanding signs (menu board and pre-sale sign) be capped at the current maximum of 32 square feet, the variance would not prove to be a negative impact to the adjacent restaurant with only one menu board. Financial or Budget Considerations: The application fees cover the cost of processing the request. Options: Approve, deny or modify the resolution. Recommendation / Action Requested: The Planning Commission recommended approval of the request based on the findings that the criteria for a variance have been met, specifically that the 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. S:\Planning\Planning Files\Applications\2018 Cases\Starbucks Sign Variance\CAF 181022.docx applicant has identified that there is a practical difficulty in complying with the regulations and that the request is the minimum variance necessary to alleviate the practical difficulty. Proposed motion: Move to adopt the attached resolution approving a variance for additional drive- thru signage for the Starbucks located at 19285 State Highway 7, subject to the conditions in the attached resolution as recommended by the Planning Commission. Next Steps and Timelines: If the item is approved, the applicant could submit their request for a sign permit. Connection to Vision / Mission: Quality public services - r � u Y e i e L • , l n r q ; e r a m V-4 Va V-W—, r II is it \77 0 �Z �41 CD 77LFTT-�-! T T fi T T T fi fi r T laa-I 00 ��afgn� I T T fi fi Sue IV is Z � a10 uiadS I m M 2�� toll �-�j:�,RE fi T u�N 2N N5 TAT IF _II T T T fi r fi r T fi T O C A�� U I City of Shorewood 5755 County Club Road Shorewood, MN 55331 952.960 -7900; FAX: 952.474.0128 Dear City of Shorewood: The purpose of this letter is to justify the pre -menu board and canopy with digital order screen of the new Starbucks Coffee on 19285 Hwy 7. Exhibit 1: Section 1201.05 Please consider allowing the pre -menu board and canopy with digital components for this Starbuck location. The landlord /property owner has approved the standard Starbucks drive thru equipment. 2. The approval for the pre -menu board will allow for decreased line stacking for vehicles and helps reduce the drive thru wait for customers. This menu item is standard for Starbucks Coffee drive thru locations, that help create an efficient continuance of traffic. The approval of the canopy with digital components allows for the customer to see and guarantee order accuracy. When the order is placed the customer can promptly see their order on the screen. The approval for these items would allow a typical drive thru traffic flow with the allotted property. 3. The variance, if granted, is simplistic with space along the drive thru lane for these items to not be viewed as crowded or in excess. 4. The variance, if granted, will not alter the essential character of the neighborhood & development area. The adjacent properties face other commercial businesses- no residential areas- so illumination will not disturb the surrounding area. The addition of these signs is not a danger to public safety and do not increase fire hazard. 5. The variance, if granted, will not be detrimental to the public welfare as there is enough room along the lines of the drive thru lane to accommodate the signage. A digital confirmation screen is increasingly popular amongst restaurants and other food chains as it demonstrates accuracy and customer satisfaction. 6. The variance, if granted would not be considered in excess due to the restaurant layout and would properly allow customers to gain the full Starbuck Coffee experience while ordering in the drive thru lane. Thank you for your time and consideration in this matter. Sincerely, Jod'smelser Jodi Smelser Sr. Project Manager Team Lead Hilton Displays, Inc 125 Hillside Dr. Greenville, SC 29607 c: 864 - 516 -4182 o: 864 - 233 -0401 V E'[') 6 � A Z� u Q K y u_ LL w O� n W Q (D a z„ o� w wr C' w� w W Qa Ln aN W �£ 2 W J W M 2 F� r W m coo � I r1a� Bit oa,� ^Q ^o 33...Rz ry� act mw H �m�ON a =° 6 4 N (V a O z Nw r �6O z w0 w �LL W� a CI M "a a + z z j aim 1 a o a ®n e 1 � � LL z U O a Ti c w D � O 91. 1 I 1 I xa �y w � 5a y VV'9w �u Ha wN °gpw "w Eg mEO Diu k'�u =WO��w �E�< y��< �° g f ^j3 Na� win QrG�t�.'C'u ;w °way 58 mm s i W a w �IIJJ i', << k vZo x 0' wv F • 0 o �¢ uo m N 0) z 2 L U o 3c O w m 3yy ca 3 y ~ o w v m r a �f.���• O � / • / - am Y O m • t • N N N O N L J (A v }}° G F 2a= wo� �� 7 • a• L v y N O v 0 M V a N V O O a Q o •� o F a µJ N c°v °� oz; i W a w �IIJJ i', << k ? z 0' wv F z m d 4 �"+ i o w m ca w= z ~ o w v r a �f.���• O � / • / jay] w w a z 0 J (A v }}° G F G Q " 0 d 0 ? z 0' wv F z m d 4 �"+ i o w m w= z ~ o w v r a Q_ w w a z J (A v }}° G F G Q " u uj 6 v 0 M V a N V O O a a µJ 0 d 0 & ] 2 � � � 0 2 _ - w m w z - ° ■ u ■ 0 w) § ) m z g u o[ f I z m m S S0� w@a$eeeae$ @ @$ / � .\r C � 0 k} � ) (0) \ k k$j ' § \ §§ . § ) [ §w\ • !«§; Ile - m - « \.. 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Ems° n NNN? c _ § .o o'- W 3 2@ o $ »3 o- �s R w w °m• o y o-$ 2 ; ga rym $`o HNB a�d�Z Ewyoa3 •O-' V1 w2 p2 D3° �,Emmd V N3a� o�X16E o d � n o y 5— n rSa E 2 d E E c3 Ep- �IL�O�th iO �F dl0 CJ C0 O V fi K E �N o L N M 4 �L m T �y L � 2 2 S � a 8 v o � P c c 5 1O� oEd U p d as =d16 .E o.fmnaN� 3 THw E _ E c a-ea a p@ c d a rno 3 d m o a c n U9 m d nuJ Piym axiav gp 8 fi T S� tae mF 3 S c 0 .q i d W R' a d s N 3 s d W l� LL a r K 5 Ci • nN r� R U �8 4R 5 v U' W_ rl oil 'S ff �a 0 PRE -MENU BOARD - FREESTANDING Qty. 1 ® 24% C63zcn1 F24% 14' - C35.6cn1 C29.BCn1 0 -A DEPTH LOCK -\ ACCESS A4 / 3536" C903rn3- 3516' [9D.5Cn1 HALO 23;' 30)6' C76SCn1 CASE [7.02 HALO 25 -3/8' MSG c ocn7 FACE FRAME ARFA [ C7,OCn7 HALIJ 7V0 183(1' AP HI MSG AAFTA GRAPHIC VIDTH- NDT SHIFTED, w1n 45, it CENTERED IN CASE MESSAGE AREA -(25.375 * 38.125)11"- 6.72 $O FT DTE - PRE -MENU FREESTANDING Scale: l2 - =1' (1Ixt7 paper) VARIANCE REQUIRED 6' Ml 3i" [19mm) STEEL BASE PLATE w/ 18deg HOLES PATTERN LEFT SQUARE / SYMETRICAL x2 - C6X10.5 (6 "x2 "x6/16 ") STEEL POST (Ix) 83 - 5"x3 "W STEEL SUPPORT ANGLES (2x) (WELDED TO STEEL POST) k4 - EXTRUDED ALUMINUM MENU BOARD (lx) ONE SPLIT PANEL LIGHTSOX TWO 251/.".18%" GRAPHICS GRAPHIC ASSEMBLY CENTERED, NOT SHIFTED STANDARD LED TUBE LIGHTING, SIDE LOCKS *5_ WELDED ALUMINUM BASE COVER 16 - WATER -TIGHT BOX w /SWITCHES & SENSOR, RIDGID CONDUIT RUN TO SECOND EXT BOX BELOW BASE COVER, 120 WATT, 0.3OAac *7 - 8 BASE WASHERS, W THICK 1P8 - TWO SIDE MOUNT LOCKS, RETAIN EXISTING KEY sE3- 26-819 -15 U SIGN BASE AND PLATE COVE" (BY STARBUCKS) FINISH GRADE I � 1 CONCRETE FOOTING DTE - PRE- MENU FREESTANDING Scale: 318' = 1'(11x17 paper) ��.+uw,un,a,nc urvu,rvu.ru"u unruouuncu rrunn ur niuury ulxlnrarwu mnr nv l nt rctrnvuu�tu. wrltu,un tzn 11.1 —r-1- ­­I WRITTEN CONSEMFRCMANADTHORIZED OFFICER OFTHE COMPANY, p HILTON DISPLAYS 2018 725 HILLSIDE DRIVE • GREENVILLE SC 29607 P 800 353 9132 • F 8642422204 _hftrdispl.9s CHID 18 -41574 JOB NAME LOCATION Shorewood MN CUSTOMER CONTACT SALESMAN /PM DESIGNER DWG. DATE As Noted 2018 /Starbucks /Shorewood I 18- 41574/SB Shorewood MN 49955.cdr EST: REPRESENTATION OF THE PROPOSED SIGNAGE DUE TO VARIATIONS IN PRINTING DEMCES AND SUBSTRATES, THE FINISHED PRODUCT MAY DIFFER SL16HTLY FROM DRAOANG. Underwriters 10 U� F Laboratories Inc. 253:' (65.4cn1 413 13' C33.0rn1 R2 9?6' C25,1cn3 6, [152rn] �2cn7 4)6' C11,4rn1 4' C10.2cn] 14' 135.6rn1 e7 236' C6.7cn1 4' [10.2111 436 [I18cn7 10' [25.4[11 6' Ml 3i" [19mm) STEEL BASE PLATE w/ 18deg HOLES PATTERN LEFT SQUARE / SYMETRICAL x2 - C6X10.5 (6 "x2 "x6/16 ") STEEL POST (Ix) 83 - 5"x3 "W STEEL SUPPORT ANGLES (2x) (WELDED TO STEEL POST) k4 - EXTRUDED ALUMINUM MENU BOARD (lx) ONE SPLIT PANEL LIGHTSOX TWO 251/.".18%" GRAPHICS GRAPHIC ASSEMBLY CENTERED, NOT SHIFTED STANDARD LED TUBE LIGHTING, SIDE LOCKS *5_ WELDED ALUMINUM BASE COVER 16 - WATER -TIGHT BOX w /SWITCHES & SENSOR, RIDGID CONDUIT RUN TO SECOND EXT BOX BELOW BASE COVER, 120 WATT, 0.3OAac *7 - 8 BASE WASHERS, W THICK 1P8 - TWO SIDE MOUNT LOCKS, RETAIN EXISTING KEY sE3- 26-819 -15 U SIGN BASE AND PLATE COVE" (BY STARBUCKS) FINISH GRADE I � 1 CONCRETE FOOTING DTE - PRE- MENU FREESTANDING Scale: 318' = 1'(11x17 paper) ��.+uw,un,a,nc urvu,rvu.ru"u unruouuncu rrunn ur niuury ulxlnrarwu mnr nv l nt rctrnvuu�tu. wrltu,un tzn 11.1 —r-1- ­­I WRITTEN CONSEMFRCMANADTHORIZED OFFICER OFTHE COMPANY, p HILTON DISPLAYS 2018 725 HILLSIDE DRIVE • GREENVILLE SC 29607 P 800 353 9132 • F 8642422204 _hftrdispl.9s CHID 18 -41574 JOB NAME LOCATION Shorewood MN CUSTOMER CONTACT SALESMAN /PM DESIGNER DWG. DATE As Noted 2018 /Starbucks /Shorewood I 18- 41574/SB Shorewood MN 49955.cdr EST: REPRESENTATION OF THE PROPOSED SIGNAGE DUE TO VARIATIONS IN PRINTING DEMCES AND SUBSTRATES, THE FINISHED PRODUCT MAY DIFFER SL16HTLY FROM DRAOANG. Underwriters 10 U� F Laboratories Inc. 5 -PANEL MENU - FREESTANDING Qty.1 © 96Y2' [NS,OCn] e2 R3 14%, OVERALL DEPTH —T - -� gOCx \ ;� j� CCESS ` 4 -Z,_ CCESS # `s 108' C274,4rn7 86-1/4 353' C90.Scn7 HALO MSG 30W 176Scn7 CASE AREA 17.1cn7 HALO 25%' C64.5cn7 2 LENS OPENING C6.00N z3,• FACE FRAME 83 C70cn3 HALO MESSAGE AREA = (86.25' 38.125) / 144 = 22.9 SO FT DTE - MENU 5 PANEL FREESTANDING Scale: 1/2' = 1' (11x17 paper) 36%' C92.4cn7 13;' [4.4Cn1 125HILLSIDEDRWE• GREEWILLESC29607 �2 �l 216' P8003539132 • F8M2422204 6' l3' t7 E,Srn] www.hllton4lrylayzmm C15,2rn1 [33,Orn] 4 �6 ., [1IT 14• . Ln7 3' [76cn] 18' �[I0.2cn] 5' 112.7rn7 5. 02.7cn7 m• [25.4 -3 Starbucks 49955 17 J G4 634' C17.1cn] 5' 02.7en3 3' r7.6 ml a1 -Y" 119MMI STEEL BASE PLATE W/ 18deg HOLES ShOIBWOOCI MN • • 23 48W [MEScn7 HALD I I I I I I I [96Si n s2 (BOLTED TO WELDED Y" STEEL CROSSBARS) E4 GRAPHTI 65Y,' 1165.6cn7 •4 - EXTRUDED ALUMINUM MENU BOARDS (3x) $8_1/8" I I MSG I I I I I ONE FULL AND TWO SPLIT PANEL LIGHTBOXES 1� A A I Heather Welch C42�cn7 41' II II [1D4.1cn7 TO f3 45 II CEI T. -_ -____ _ _- f6 _� GRAPHIC WIDTH- 25Y' 164.2-1 —SHTO FIE D (typ 3 Places) F3 , MESSAGE AREA = (86.25' 38.125) / 144 = 22.9 SO FT DTE - MENU 5 PANEL FREESTANDING Scale: 1/2' = 1' (11x17 paper) 36%' C92.4cn7 13;' [4.4Cn1 125HILLSIDEDRWE• GREEWILLESC29607 �2 �l 216' P8003539132 • F8M2422204 6' l3' t7 E,Srn] www.hllton4lrylayzmm C15,2rn1 [33,Orn] 4 �6 ., [1IT 14• . Ln7 3' [76cn] 18' �[I0.2cn] 5' 112.7rn7 5. 02.7cn7 m• [25.4 -3 Starbucks 49955 17 J G4 634' C17.1cn] 5' 02.7en3 3' r7.6 ml a1 -Y" 119MMI STEEL BASE PLATE W/ 18deg HOLES ShOIBWOOCI MN • • .n7 PATTERN ROTATED FOR 15deg THRU 3deg POSITION •2 - C6X10.5 (6 "x2 "xyi6 ") STEEL POST (2x) •3 - S"X3"XY" STEEL SUPPORT ANGLES (2x) n s2 (BOLTED TO WELDED Y" STEEL CROSSBARS) ( •4 - EXTRUDED ALUMINUM MENU BOARDS (3x) ONE FULL AND TWO SPLIT PANEL LIGHTBOXES 1� ONE - 25%"x38" AND FOUR 25Y."x18%' GRAPHICS Heather Welch ALL GRAPHIC ASSEMBLIES SHIFTED %" TO RIGHT STANDARD LED TUBE LIGHTING, SIDE LOCKS •9 x5 - WELDED ALUMINUM BASE COVER - I v *6 - WATER -TIGHT BOX /SWITCH B SENSOR, ' RIDGID CONDUIT RUN TO SECOND EXT BOX Chad Wike BELOW BASE COVER, 120 WATT, 0.9OAac l r7 - 8 BASE WASHERS, Y- THICK f 64' x8 - TWO SIDE MOUNT LOCKS per MENUBOARD . II [162.arn7 RETAIN EXISTING KEY 4'E3 -26. 819 -15 4 -25-18 6' 4%' C11.7rn3 14 C36, • I As Noted 2018 /Starbucks /Shorewood MN/ 18 41574/SB Shorewood MN SIGN WITH BASE 49955.cdr AND PLATE COVER (BY STARBUCKS) FINISH GRADE E$T: CLIENT: CONCRETE :LANDLORD; 7 I I FOOTING I THE INTENT OF THIS DRAWING IS TO SHOW A CONCEPTUAL DTE - MENU 5 PANEL FREESTANDING REPRESENTATION IN P OF G DEVICES S AND SUBSTRA ES, TO VARIATIONS FINISHED IN PRIMING DIFFER S ANDY FROM DRIA, THE RNISHEO PRODUCT MAY DIFFEfl SUGHTIYFROM DRAWING. Seale: 318'= 1' (11x17 paper) _ Underwriters Laboratorles Inc. TMI5 DESIGN 15 THE ORIGIMALAND UNPU5USHW WORK OF HILTON DISPLAYS AND MAY NOT BE REPRODUCED. COPIED, OR D MIBRED IN ANY FASHION WITHOUT WRITTEN CONSENT FROM AN AUTHORDED OFFICER DFTHE COMPANY. 0 HILTON DISPLAYS 2018 DOS ON CANOPY - DCB ON UNISTRUT Qty. 1 ®R epsExHLROL - Ad— w © VOLTAO I VOLTWL TO.— LK f5 EfIDE 9Df pgTET �itSi3�OwM LNALLE aADai L`p(FxN N061 J�� BTTeAbR JI PYI � MTANMO TOMNAIp LOpc ��� W�9 LAOCIIONND�SDOM FORS i R[FWfNCE OrVM MNEe LM VOLTAO[ Po9DON5 oFALL O[VK6 wx wpn GC AND vDEINMt 1?F ♦ ♦ [Relxal �`` II - 12o+wlw i � COxDUlTORS COrID��� Rr wEn 1R DETA -UNE WLTAODDE�BDXWOTORB. `omlTOrwTm rowrA vDfoaaW `- ♦ ♦`,i F,) TO DOL B[twFxN txHANDDta 0. OOlvwOOR TOCONHfR Atli° o QD°EMD OOs taunMm OYIJ L W DIROM f6rHOTMLDM T•O.OETfCIW l00MRf M♦I NC _______ J�OpNptRl, R001E1G a.T muTewDOxMD roWEltONTFRM- mcom WEIEp MCOMMOOEOCATED 1•CUJIfM s'CMIMCOMNa rows MOlf• WGTo 006 OHTq xAL[t00Ks MtuD DDS DtaRrireD WE0. A Powell r4 DCe � sE DTE - DOS CONTROL BOX WIRING O°I�MlM O!`�OIGTFD wrt� MDx°T Sf °x Scale: 12' =1' (11x17 paper) VARIANCE REQUIRED F R6 iox DTE - DOS CONTROL BOX CONDUIT STUB -UPS AT CANOPY Scale: 12' = 1' (11x17 paper) R3 90' t228.60A ROOF PANEL SUPPORT 15' 138.1cn3 Ad— i f5 FRANF�iNDORTO`Tm PIN- COxDUR WRN WA TfIt1gMTCWPLxO FFAaE011U0AL MaDUD CNWD x N i Il_ 6AAx �-- c°NDDIrRelteLeLTRK L SEGO c°xcaet[RDOTmo DTE - DOS CONTROL BOX AT CANOPY Scale: 12' =1' (11X17 paper) ����yy SHL us tt[Eyy t291m11 TWi' [FL9W IT.6w1 BTj' t[Gm1 " �VA� li{' [05cn] ao L1L• 1L1L• tAxw BP76' D41 W � `' (L12W � EM'2cnl ; �1T 07aW Eli' OLhN �t DTE - CANOPY Scale: 1/4' =1' (11x17 paper) RI -TWO - V [19mm1 STEEL BASE PLATES w/ OVAL HOLES FOR SWPVEUPOSITION 16. 1i WASHERS SUPPLIED l2 • TWO - BACK TO BACK C4X'7.25 (4•xP: xFt1) STEEL POSTS M3 - WELDED ALUMINUM HEADER, G'XI.SB' CHANNEL N - THREE • ALUMTNUM ROOF PANELS SEAMLESS RAISED SIDE EDGES 15' OF USERED PATTERN W/ DRIP EDGE BEHIND WS_ WELDED STEEL PERIMETER ROOF FRAME 06 - WELDED Fss' STEEL 15-1 MONITOR SUPPORTERAME WITH HOT ADJUSTMENT l7 - WELDED STEEL 1' [25.4mm) O -C WIRE GRID BACK a SIDE PANELS IN WELDED RECTANGULAR STEEL TUBE FRAMES 18- 41s.'X" (11.3cmX12.lmm1 WHITE ACRYLIC LETTERS. FUZED TO LH GRID PANEL w /ANTI- TAMPER SCREWS l9 - WELDED ALUMINUM BASE COVERS 110 - WELDED ALUMINUM WATER -TIGHT ELECTRIC ENCLOSURE (REAR HATCH) 111- LED CEILING FLOODLIGHT, WIRED COMPLETE , ��• ��, �,. �-„ �. �, ��„-.. �,.- �,.. �-.. ���...,,,,,.,, � „,L,��.,,,,.,,,�,�.,,,.,,,�,.,, BPS, �. rvwNVr�. w. �s,.. xrvs..rv�D��rumNrv.ramNrvrvnnwiWmnuv uun >eni rnumiuvnuLnunacu urrarx ur lne wmvnNT. �nRTDN DISauis zme �L /n Tn 125 HILLSIDE HILLSIDE DRIVE • GREENVILLE SC 28607 P 8003539132 • F8642422204 www.hftndlsplav mm QID 4 JOB Starbucks 49955 • ' • Shorewood MN SALESMAN / PM :ter Welch d Wike • 425-18 As Noted 2018 /Starbucks /Shorewood I 18- 41574/SB Shorewood MN 49955.cdr THE INTENT OF THIS DRAWING IS TO SHOW A CONCEPTUAL REPRESENTATION OF THE PROPOSED SIGNAGE DUE TO VARIATIONS M PRINTING DEVICES AND SUBSTRATES, THE FINISHED PRODUCT MAY DIFFER SLIGHTLY FROM DRAWING. Laboratories (f� � Laboratories Inc. 72" ILLUMINATED D/F PYLON Qty. 1 SBC -PART # O 125 HILLSIDE DRIVE • GREENVILLE SC 29607 P 800 353 9132 • F 964 2422204 Sion Specifications: www.hlao1dl1plaY1— 6' -0' ha3anml - ---r1' -6' iI Disk Cabinet: Flexible face substrate With first surface applied 3M 3630.76 �HolyGreenVinylflm $feel angle frame with .063" [2mm] aluminum filler painted black to QID 18 . — Whitesinentobeweededoutof matchRAL7021M. _ € g1een NnN SignComp Petro bleed flex face retainer painted black to match RAL 7021 M. • e NAME - ? Steel angle frame with SignComp 2104 fiat bleed rebo frame Areas using black paint to match RAL 7021 M shall have a max 20% ai = and. 063' anent aluminum Mier- painted black to match = gloss level, match sample. o RAL 70211 - match sample Flexible face substrate with first surface applied 3M 3630 -76 Starbucks 49955 ° Holly Green vinyl film. While siren to be weeded out of green vinyl. Interior aluminum surfaces of sign cabinet to be painted white with Lacryl Sniioiimatch painted black to match r • • All fasteners used in the assembly of internal components shall be Steel Torsion tube assembly painted black to match `° coated to prevent corrosion. Shorewood MN a . - RAL 7021M- malldl sample �� . • �� Internal structure of cabinet shall be per approved shop drawings. Steel pipe 4— �— Graphic elements are internally illuminated using Sloan LED's or 6' -0'�•I� Weatherproof disconnect switch with sealing boot p -6^ I Starbucks approved equal. All electrical components are removable for • _ • • 1 0ez9mmi Steel angle forma with exWded aluminum retainers rainers and Rnmmi 53/4• 4 -0518 1'-14mmm1 n2mmmt service. •Torsion tube assembly to be constructed of 5 "x 5" x 114' \ .063' 021 aluminum filler - painted black to match RAL 7021M •match sample [127mm x 127mm x 6mm] Square steel tube with .063' [2mm aluminum filler. top and bottom. Assembly painted black to match RAL 721 M. - 3116' ismm] pigmented white SG poycarbonate face Drive Thru Cabinet panel to match R&H #7326 with 3M#M5 -22 opaque Steel angle frame with .063" [2mm] aluminum filler painted black to match black vinyl• Copy and chevrons to be weeded out RAL 7021. SignComp retro bleed flex face retainer ppainted black to match RAL 7021 M. Areas using black paint to match RAL 7021M shall have a max 20% Heather Welch • - She/vibe Amd palmed RAL T02,M gloss level, match sample. Flexible face substrate With first surface applied 3M 3630 -22B black Chad Wike ✓ block-out vinyl film. Copy and chevrons to be weeded out of black vinyl. Interior aluminum surfaces of sign cabinet to be painted white with Lacryl Starbrite. • All fasteners used in the assembly of internal components shall be Front Elevation View Side View Rear Yew coated to prevent corrosion. 4 -25-18 Internal structure of cabinet shall be per approved shop drawings. Scale: 3/16" = 1' (11 x17 Paper) Graphic elements are internally illuminated using Sloan LED's or Starbucks , approved equal. All electrical components are removable for service. Regulatory: Sign must meet all regulations in the National Electric Code as well as any local or state electrical codes. As per NEC 600.6, sign is equipped with a service disconnect switch. Sign must be listed as an Electric Sign per Underwriters Laboratories UL48 and /or GSA and bear the appropriate UL, CUL or GSA relevant certification marks. Primary power by electrical contractor per NEC. "As Noted F 425 C JM J63676 021M 3M 3630 -22 MrrE 3M 3630,20!7725.10 69 C NA WHITE 3M 680 -10 THIS DESIGN IS THE O1 AND UNPUBLISHED WORK OF HILTON DISPLAYS AND MAY NOT BE REPRODUCED. COPIED. OR EXHIBFTED IN MY FASHION WITHOUT WRITTEN CONSENT FROM AN AUTHORIZED OFFICER OF THE COMPANY. 0 HILTON DISPLAYS 2DIS 2018 /Starbucks /Shorewood I 18- 41574/SB Shorewood MN 49955.cdr THE INTENT OF THIS DRAWING IS TO SHOW A CONCEPTUAL REPRESENTATION OF THE PROPOSED SIGNACE DUE TO VARIATIONS IN PRINTING DEVICES AND SUBSTRATES. THE FINISHED PRODUCT MAY DIFFER SLIGHTLY FROM DRAWING. Underwriters Laboratories Inc. : [ E `d j m ��m Customer Driven HM Electronics, Inc. 14110 Stowe Drive Poway, CA 92064 800.848.4468 www.hme.com Table of Contents Executive Summary ......................... ............................... 2 An Industry Empowered by Technology ..... ............................... 2 Communication Systems Promote Speed and Accuracy ..................... 5 ClearSound Noise - Reduction Technology .... ............................... 8 Drive -Thru Acoustics ........................ ............................... 8 Training Employees for Success ............................................. 8 Multi -Lane and Multi -Point Order Taking .... ............................... 9 Setting and Measuring Service Standards with Timers ...................... 9 Analyzing Results .......................... ............................... 12 Keeping an Eye on Business with Surveillance Systems .................... 12 Other Technologies for Optimal Operation . ............................... 13 Conclusion ................................ ............................... 14 About HM Electronics, Inc .................. ............................... 15 Bibliography.............................. ............................... 16 HM Electronics, Inc. 14110 Stowe Drive Poway, CA 92064 800.848.4468 www.hme.com How to Optimize Drive -Thru Operations with Profit - Driven Technologies HM Electronics, Inc. 14110 Stowe Drive Poway, CA 92064 800.848.4468 www.h me.com Executive Summary It's tough to operate a profitable quick service restaurant (QSR) these days. Among the challenges facing operators are a saturation of the QSR market, increased competition from casual- dining restaurants offering more choices for customers, high employee turnover rate, and a recovering economy. The pressure is on existing QSRs to operate more efficiently, attract new customers, and keep them coming back. With a substantial part of any QSR's revenue coming from the drive -thru, operators are searching for new ways to improve its efficiency. And drive -thru technology plays a key role in this quest. According to a recent article in QSR magazine, "Technology, as a whole, now plays an indispensable role in quick- serve. From consumer applications that enhance the diner experience to operational applications that improve the restaurants' day -to -day functioning, experts say quick- serves that do not embrace technology are missing both revenue - boosting and cost - cutting opportunities that could put them at a competitive [advantage]. "' Optimal drive -thru efficiency depends upon numerous elements of operation, but the most critical components are order accuracy and speed of service. Within the last few years many new technologies have been designed to help QSRs improve these twin components of profitability. An Industry Empowered by Technology Although drive -thrus have existed since the late 1920s, until the mid -1970s most QSR customer orders were taken inside the restaurants. However, the last twenty - five years have witnessed an explosion in drive -thru sales, with some of the newer chains reporting as much as 90% of their sales and 80% of their growth coming from the drive -thru. Even the most traditional and established chains were reporting 50 -75% of their total revenues from the drive -thru. To monitor this drive -thru revolution, industry executives mobilized special teams to study both the human factors and the technologies that would give their companies a competitive edge, down to the second. In 1997, QSR magazine teamed up with the market research firm Global Growth Group (formerly known as Sparagowski & Associates) to study how the 22 largest chains 21 How to Optimize Drive -Thru Operations with Profit - Driven Technologies HM Electronics, Inc. 14110 Stowe Drive Poway, CA 92064 800.848.4468 www.hme.com in the United States had performed at the drive -thru during the previous year. This report, the "Drive -Thru Time Study," has since become an annual feature of the magazine, with the number of companies surveyed now standing at 25. Rankings are based on scores in four categories: (1) speed of service; (2) order accuracy; (3) speaker clarity; and (4) menuboard appearance, with speed and accuracy being weighed more heavily (each get 40% of the final score) because of their greater importance. The latest "Drive -Thru Time Study" confirms what most key players in the QSR industry already knew: speed of service and order accuracy at the drive -thru mean higher revenues for the com- pany as a whole. "Wendy's profits have outpaced the rest of the fast foodies for one key reason: Its drive -thru windows consistently rank among the fastest and most accurate in the industry." 2 For obvious reasons, the appearance of each year's "Drive -Thru Time Study" has captured the attention of QSR executives, operators, franchisees, managers, stock analysts, and even some customers. Competition is fierce among restaurant chains seeking to climb higher on the list, for both publicity and profitability reasons. Both speed and accuracy are critical to customer satisfaction and repeat business. Customers with busy lives and tight schedules quickly grow frustrated with every second that a food order is delayed. Even minor slip -ups can cause customers to look for a different place to eat next time. But how can a QSR achieve the drive -thru speed and order accuracy that will keep it ahead of the competition? Many theories have addressed this question, but the consensus among experi- enced QSR operators is that the best operational results are achieved by using a comprehensive approach of technology, people, and process. "The gadgets allow faster, more accurate service, but they have also trained the people — customers and employees — to demand still more from the drive -thru. Because the only way to increase volume is to move more cars, franchisees constantly study and wonder what they can tinker with or even overhaul to make themselves more drive -thru friendly. "3 41 How to Optimize Drive -Thru Operations with Profit - Driven Technologies Reducing service time while preserving accuracy has a direct correlation to improving drive -thru sales. According to McDonald's former CEO Jack Greenberg, "unit sales increase 1 % for every 6 seconds saved at the drive- thru. "4 In the last few years, many QSR operators have installed the latest communication systems, drive -thru timers, surveillance systems, POS systems, and a dozen other high -tech innovations designed to give customers what they want — quick, accu- rate service. And the QSRs that succeed in satisfying the customer's appetite for value, quality, efficiency, and convenience become the most profitable. Communication Systems Promote Speed and Accuracy Since their debut in the early 1980s, drive -thru communication systems have become a key element in QSR operation. The earliest drive -thrus did not change the basic face -to -face interaction between the customer and order- taker, but sim- ply allowed customers to remain in their cars while ordering. The introduction of drive -thru communication systems, however, did change the character of order giving and receiving. These systems allow employees to serve customers more efficiently at every stage of the drive -thru service — from taking the order, to preparing the order and finally delivering the order — in a swift, systematic fashion. Does newer mean better when it comes to communication systems? In the decades since their introduction, communication systems have evolved from cabled to wireless to meet the needs of today's fast -paced drive- thrus. The newer generation of wireless communication systems comes equipped with a suite of cutting -edge features. The hands -free capability, for example, allows employees to move around freely and comfortably while performing mul- tiple tasks. According to QSR magazine, "The wireless headset technology has been credited with increasing traffic by as much as fifty cars an hour at some McDonald's stores. It also is something customers will remember the next time they drive out for lunch." s How to Optimize Drive -Thru Operations with Profit - Driven Technologies HM Electronics, Inc. 14110 Stowe Drive Poway, CA 92064 800.848.4468 www.hme.com HM Electronics, Inc. 14110 Stowe Drive Poway, CA 92064 800.848.4468 www.hme.com A recent study conducted by Global Growth Group — the "Drive -Thru Communications Study6" — reported that wireless communication systems can reduce service time by about 24% — or nearly 1 minute per car — resulting in significantly faster service than restaurants using the traditional face -to -face method of ordering, which required customers to drive to a service window to place an order. 7 Wireless systems also increase order accuracy over old- fashioned wired systems. "Wireless technology continues to aid convenience and accuracy at the drive- thru. "8 Average Service Time (min:sec) The full - duplex feature is another reason to invest in a wireless communication system. The older, half - duplex systems provide choppy communication between the customer and order- taker, similar to that of a walkie- talkie. The full - duplex system, however, allows for smooth, natural conversations, like those on a telephone. Both parties can speak and listen at the same time, thus ensuring that an order is taken accurately the first time. The "Global Growth Group Drive -Thru Communications Study" also showed that full - duplex communication systems increase speed of service by 6 seconds over half - duplex systems. 6 1 How to Optimize Drive -Thru Operations with Profit- Driven Technologies The more employees who can hear customer orders in real -time and work on them simultaneously, the faster the service will be. It is important, then, from a speed of delivery standpoint, for every employee in the food production line to wear a COMMUNICATORO. The "Global Growth Group Drive -Thru Communications Study" found that restaurants using 7 or more Communicators@ experienced significantly faster service than those using 4 or fewer Communicators @. The Study showed that speed of service could be reduced by up to 24 seconds per vehicle when 7 or more Communicators@ were used. Saving 24 seconds per drive -thru customer can significantly impact a restaurant's bottom line. By industry standards, an increase in drive -thru efficiency by 10% bolsters sales at the average QSR by $54,000 per year.9 According to Brian Baker, Vice - President and General Manager of Global Growth Group, "Franchisees are getting a jump on orders by having more headset units on employees... More employees hearing the order ensures that the system runs smoothly, and the extra equipment cost is justified by higher traffic. "10 v 3:10 - - - 3:00 - 2:50 - S 2:40 2:56 2:51 2:30 - 2;44 Z11 2:20 2:35 2:28 2:28 v c 2:10 2:00 2:11 1 2 3 4 5 6 7 or more Number of Communicators' HM Electronics, Inc. 14110 Stowe Drive Poway, CA 92064 800.848.4468 www.hme.com How to Optimize Drive -Thru Operations with Profit - Driven Technologies 1 7 HM Electronics, Inc. 14110 Stowe Drive Poway, CA 92064 800.848.4468 www,hme.com ClearSound Noise- Reduction Technology A modern innovation available on newer systems is the built -in noise reduction technology, such as ClearSound from HME. ClearSound processes all sounds present at the drive -thru lane and eliminates extraneous ambient noises such as idling engines, mufflers and nearby traffic. With ClearSound, the order -taker hears only the customer's voice, freed from the unwanted environmental noises than can muddle drive -thru communication. "Wireless communication devices [such] as headsets and new -age audio systems ... improve sound clarity and filter out external noises such as nearby vehicular traffic. "11 Studies have shown that ClearSound can improve order accuracy by 41% and quicken service times by as much as 12 seconds per car.12 Some analysts believe that a twelve second improvement in speed can increase a store's revenues by as much as 2% per year. Drive -Thru Acoustics QSR operators should also be aware that the acoustical environment of the drive -thru lane can affect the long -term success of their business. A drive -thru located near a busy street, highway or strip mall is likely to have more environmental noise to contend with than one located in a quiet residential neighborhood. By reducing the amount of noise at the drive -thru lane, operators can take proactive measures to improve sound quality. Menu boards should be placed at locations which facilitate accurate communication between the customer and order -taker rather than at some random location in the drive -thru. Another basic though often overlooked acoustical measure is to encourage employees to use drive -thru equipment properly, such as putting the headset microphone in its proper position, thus enabling customers to hear the order - taker more clearly. According to the "Global Growth Group Drive -Thru Communications Study," restaurants with clear, highly - intelligible communication systems completed drive -thru orders approximately 22 seconds faster than those with unclear communication. Training Employees for Success Delivering the best drive -thru experience possible is not only about technology but the ability to train and motivate employees to meet your business goals. 81 How to Optimize Drive -Thru Operations with Profit - Driven Technologies According to QSR magazine, "training and incentives are the building blocks of speedy service. "13 Operators discovered that using incentive contests in training employees have been very effective in achieving their restaurants' service goals. By selecting and training the best communicator at your restaurant to take orders, for instance, you'll ensure that each customer interaction will be clear, friendly and audible. Multi -Lane and Multi -Point Order Taking As research has focused more on utilizing the potential of the drive -thru to increase revenue, some facilities with adequate outdoor space have explored the possibilities of adding a second or even a third drive -thru lane. Such lanes, positioned either side -by -side or in tandem, not only increase the number of customers who can be served at any one time, but may also prevent the buildup of long lines which can discourage potential customers. "Dual drive -thrus are as much about customer perception as they are about creating faster service. Studies show that the longer the drive -thru line, the less likely people are to enter. "14 Certain recent advances in communication systems are designed to accommodate these various drive -thru configurations. Features such as voice prompts not only alert employees when the batteries on their Communicator® are low but also help them keep track of what lane they're working on. Multi -point order systems with a greater number of wireless Communicators' and wireless point -of -sale components can also enhance speed and expand a restaurant's service capacity. Setting and Measuring Service Standards with Timers In an industry where every second counts, the ability of a drive -thru to deliver speed with quality is vital. That's why the need to set, measure and evaluate service standards is critical. Although standards can vary widely across the industry, every successful QSR chain reviews and adjusts its standards regularly. Within the last few years, technology companies have designed timers,. displays and software which allow QSR operators to evaluate the speed and performance of drive -thru service. HM Electronics, Inc. 14110 Stowe Drive Poway, CA 92064 800.848.4468 www.hme.com How to Optimize Drive -Thru Operations with Profit - Driven Technologies 1 9 Average RANK RESTAURANT CHAIN Service F i une Rankina I Wendy's Chick -M -A 3 Ktystal Burge 4 Checkers 5 McDom -dd's 6 Taco Bell Taco john's Burger King 12 KFC 9 Arbv's 10 Rally's 11 Taco john's 12 El Pollo Loco 4 13 Carl's Jr. 14 Long John Silver's is Jack in the Box 2Qla; 16 A &W . 17 Dairy Queen is Del Taco1�, 19 Har"s 20 Church's Chicken , 101 How to Optimize Drive -Thru Operations with Profit- Driven Technologies Some QSR chains have used point -of -sale (POS) systems to measure drive -thru service times. Under such a system, the order -taker must manually key in both the start time (when the order is received) and the end time (when the order is delivered). While this method does provide some data on service times, it can be inaccurate and problematic. For example, the data can be manipulated by an employee who waits until the food has been prepared before keying the order into the system or who bumps the order off the system before it is actually delivered to the customer. In either case, the recorded service time appears faster than it actually was. A more precise measurement of drive -thru service is available by using a speed -of- service timer. This device, when linked to underground vehicle detectors, can automatically track every stage of the drive -thru process, from order point to pick -up window. Not only can managers pinpoint areas for improvement, but the automated nature of the timer makes it practically impossible for employees to manipulate the data. According to the McDonald's newsletter QSC &V, "The HME System 30 Timer with the optional R31 dual -color display allows McDonald's managers to track service times and increase operat- ing efficiency. 1115 Speed -of- service timers connected to prominent wall- mounted displays give employees the opportunity to compete against the clock and deliver orders within management -set goals. Large timer displays visible to employees help create a greater sense of urgency in completing orders. Dual -color LEDs switch colors from "target achieved" mode (green) to "target exceeded" mode (red). In other words, green means go and red means speed it up. With an active display like this one, managers and crew members can see at a glance how long it takes to serve each drive -thru customer. Incentives and friendly competition among crew members can actually make their jobs more enjoyable and challenging while improving customer satisfaction and increasing sales. Timer displays can be made visible to customers to demonstrate just how fast the drive -thru process can be, since some customers tend to misjudge the time spent waiting for an order. By reviewing the timer reports, managers and operators can evaluate employee performance and make the necessary changes. "[McDonald's operator Fred Scarcelli's] stores in Brandon, Florida, got their first HME timers in August, and times have dropped thirty to forty seconds per store since the timers have gone in. The result... is a consistent experience for customers. "16 HM Electronics, Inc. 14110 Stowe Drive Poway, CA 92064 800.848.4468 www.hme.com How to Optimize Drive -Thru Operations with Profit- Driven Technologies 1 11 HM Electronics, Inc. 14110 Stowe Drive Poway, CA 92064 800.848.4468 www.hme.com Analyzing Results Operating multiple restaurants can be difficult, even for the most experienced manager. Polling systems such as PC30 Software from HME can help multi -unit restaurant operators and managers gather and analyze data on drive -thru performance and diagnose problem areas without expending tremendous amounts of energy and money. PC30 Software, which interfaces with the System 30 Timer, automatically collects timer data from multiple stores and organizes it in a central database for convenient, remote access. Keeping an Eye on Business with Surveillance Systems New digital surveillance technologies are replacing existing analog systems in the QSR industry and offering many new capabilities to assist operators and store managers improve security and operations. A leading example of this is the HME VisionTech digital surveillance system, which provides a live, remote view of stores from as many as sixteen camera shots simultaneously. At one level, surveillance systems deter theft, especially at sites that are open late at night. But such systems also help operators save time and money spent traveling from one restaurant to another to monitor daily operations. Digital images of all events at multiple QSRs can be recorded and stored for later analysis. Operators can easily retrieve and review information on their own terms, thus potentially saving time and money. Many operators have also expressed satisfaction with surveillance systems because they not only deter theft but also control shrinkage. CLM principal Carlos Morales maintains that "he doesn't have a shrinkage problem but would like to use VisionTech in order to 'look at the total picture of [his] operations,' and not only deter employee theft but also help protect against in -store accident claims. "» 121 How to Optimize Drive -Thru Operations with Profit - Driven Technologies Other Technologies for Optimal Operation In addition to communication systems, timers, and surveillance systems, there are other technologies on the market designed to help QSR operators achieve peak performance by enhancing customer interaction. Menu Board Design and Placement: The drive -thru menu board sets the tone and pace for the entire QSR experience. Menu boards must be easy -to -read and kept clean to facilitate customers' choices. Pre -order boards giving a preview of menu choices have also been used successfully by many QSRs on the theory that when customers know what they want before they arrive at the order point, the entire ordering process is expedited. For better communication with customers, menu boards and loudspeak- ers should be located close together, but with one caveat — speakers and microphones should be housed in a separate post, and not in the menu board itself. Doing so can cause echo, reverberation, and overall poor sound quality. Speaker posts should also be carefully designed and placed closer to the driver's window to obtain the best acoustics. Message Repeaters: The message repeater plays a pre- recorded message welcoming customers when they arrive at the order point. It can also be used to offer a menu special or to announce safety tips at the children's playground. There are two types of message repeaters — internal and external. As a built -in component of a wireless communication system, the internal message repeater can store up to two messages while the external one can rotate among five different messages. This tool assures that a consistent, easy -to- understand message is delivered to customers at appropriate times. For employees, the message repeater eliminates the tedious task of repetitiously greeting each customer, improves speed of service, and provides a consistent greeting delivery. Field reports indicate that message repeaters can reduce the average service time by as much as six seconds per car. Order /Price Confirmation Systems: Some QSRs have video displays to provide a visual confirmation of the order which the customer can read from the driver's seat. However, some customers may read slowly or misinterpret what they see. As a result, experts are unsure whether such customer - facing video displays HM Electronics, Inc. 14110 Stowe Drive Poway, CA 92064 800.848.4468 www.hme.com How to Optimize Drive -Thru Operations with Profit - Driven Technologies 1 13 HM Electronics, Inc. 14110 Stowe Drive Poway, CA 92064 800.848.4468 www.hme.com actually improve speed and accuracy. At the same time, studies also indicate that customers like the sense of control that order confirmation systems offer. Mobile Order Teams: At high - volume stores or during peak periods, instead of waiting for customers to come to a single point, order takers equipped with wireless Communicators@ can be positioned at preview boards, thus creating several order points which can then process high demand more efficiently. This method is also effective in eliminating long lines in drive -thru lanes. Some wireless communication systems such as those from HME include special features which allow mobile team members to coordinate activities with each other as well as communicate with the employees inside the store. Electronic Payment: Handling cash is time - consuming and risky. Several major QSR chains are testing a technology that will enable drive -thru customers to bypass the cash window by using a transponder similar to those which automatically collect highway tolls. The device is electronically scanned when the car passes the menu board and the purchase is billed to a linked credit card. This innovative technology could cut as much as 15 seconds off drive -thru service times, thereby boosting monthly sales by two percent or more. Conclusion While technology alone will not resolve every challenge that a QSR operator faces, technology is an extremely important component of operational efficiency and the overall customer experience. By focusing specifically on these objectives and measuring results, QSR operators can achieve their revenue, speed and quality goals. 141 How to Optimize Drive -Thru Operations with Profit- Driven Technologies About HM Electronics, Inc. HM Electronics, Inc. (HME) has been the leading provider of technology for the QSR industry for nearly two decades. A pioneer in technology, HME introduced the world's first patented wireless communication system for the drive -thru application. Today, HME continues to deliver the most comprehensive line of solutions to help companies improve their security and productivity. From communication and security systems to speed -of- service timers, HME has built a reputation for delivering customer driven solutions based on quality and reliability. Incorporated in 1971, the privately held HME develops, manufactures, markets and services its products in over 80 countries worldwide. HM Electronics, Inc. 14110 Stowe Drive Poway, CA 92064 800.848.4468 www.hme.com How to Optimize Drive -Thru Operations with Profit - Driven Technologies 115 Bibliography 1 "The Revolution," QSR magazine, November 2002, p. 44. 2 "Fast -food world says drive -thru is the way to go," USA TODAY, April 3, 2002, p. 2A. 3 "Navigating the Loop," QSR magazine, October 2002, p. 59. 4 "Fast -food world says drive -thru is the way to go," USA TODAY, April 3, 2002, p. 2A. S "Who Delivers in Drive -Thru? "QSR magazine, October 2001, p.62. 6 2002 Global Growth Group Drive -Thru Communications Study examined the relationship between various drive -thru communication systems and the speed of service. A sample of 2800 service times from four major QSR chains (Burger King, McDonald's,Taco Bell and Wendy's), along with pertinent information on the drive -thru communication equipment used at each store were collected for Global Growth Group's in -depth analysis. 7 The data for this finding is based on a relatively small sample size in the 2002 Global Growth Group Drive -Thru Communications Study. 8 "Getting Flashier?" QSR magazine, November 1999, p. 49. 9 "An Efficiency Drive: Fast -Food Lanes Are Getting Faster," The Wall Street Journal, May /April 1998, p. Al. 10 "Navigating the Loop," QSR magazine, October 2002, pp. 46 -49. 11 "Technology on the go: Operators'rev- up'drive -thru lanes with new systems," Nation's Restaurant News, October 6,1997, p. 87. 12 "Win the Communications Race," Hospitality Technology ,July /August 1999, p. 30. 13 "Speed Kills," QSR magazine, March 2003, p.41. 14 "Taking the drive -thru diner on anew ride," Franchisee Times, May 2002, p.43. 15 "Drive -thru timer designed to improve service speed, "QSC &V,Volume 4, Issue 3, 2000, p. 14. 16 "In Gear," QSR magazine, June 2002, p. 47. HM Electronics, Inc. 17 "High -tech systems look to head off restaurant shrinkage," 14110 Stowe Drive Nation's Restaurant News, January 11, 1999. Poway, CA 92064 800.848.4468 www.hme.com 161 How to Optimize Drive -Thru Operations with Profit- Driven Technologies Fast Food Drive Tluu Pre Sell Menu Boards Affect Customer Speed - QSR magazine Page 1 of 5 '' THIS GROWING THE BURGER GOLD SUBWAY R FRANCHISE IS RUSH IS ON AT ON A YEAF ' a GOING TO THE STEAK 'N SHAKE i 'FRESH FOI "NNNENNW ps DOGS SUBSCRIBE- FOOD- OPERATIONS- GROWTH- REPORTS- EVENTS- VIDEO What are you looking for? The Drive -Thru Performance Study: Impact of Pre - Sell amazon Burger King, Taco Bell, and Taco John's experienced slower speed of service 0 0 when pre -sell menuboards were in place, while the other benchmark brands were slower when the Plates & cutlery boards were not in place. shop now Chain -' With Pre -Sell Without Pre -Sell Burger King 200.02 196.18' Chick -fil -A 199.85 228.52 -- - - -- _ - - -- Krystal 208.44 260.94 - - - - - amazon McDonald's 183.33 194.12 Taco Bell 166.44 155.23 Shop Taco John's 188.65 160.14 "'_lraI Wendy's 121.14 153.11 professional Summary 181.64 179.68 supplies SPONSORED BY Shop now iECNq✓ RECENT NEWS Round Table Pizza Sponsoring Pizza Themed Museum INIRIX Selection Introduces New Datase DRIVE -THRU BENCHMARKS Selection Suite ..0 Average Service Time Landscaping Condition Order Accuracy Service Attributes Shake Shack Now Open in Atl Airport OCB in Place Customer Service OM t " Pre -Sell in Place Suggestive Sells 99 New Domino's App Function E RETURN TO THE STORY Impact of Pre -Sell Su ggestive sells riming Groups When Pizza is Ready Cicis Opening 2nd Montgomel - -- - - - - - -- - -- - — Location in Alabama Checkers & Rally's Selling Cheeseburgers for 69 Cents m September 26 SUBSCRIBE TO A.M. JOLT The five times weekly e- newslet that keeps you up -to -date on th latest industry news and additit this website. https : / /www. gsnnagazine. comlcontentl drive -thru- performance- study- impact - pre -sell 9/25/2018 7 fD r-t O V o � 07 o W � v N oo' z 0 v N uq 0] (D k. t V) 1+ Ln Ln v s c L n v v m M 0 a� 0_ m x n rD N 0 n v 0 0 a� r+ ro 0- m cn ao v a4 rD W G K O T� O O m 7O7 Oro � S Ol o D s a � H � CITY OF SHOREWOOD RESOLUTION NO. 18- A RESOLUTION GRANTING VARIANCES FOR PROPERTY LOCATED AT 19285 STATE HIGHWAY 7 WHEREAS , Hilton Displays, (the “Applicant”) requested a variance for freestanding signage on property located at 19285 State Highway 7, legally described in Exhibit A; and, WHEREAS , the Applicant has applied for a variance to allow additional freestanding signage to allow a pre-sale sign and a digital order confirmation screen; and WHEREAS , the Applicant’s request was reviewed by the planning staff, whose recommendation is included in a memorandum for the October 2, 2018 meeting of the Planning Commission, a copy of which is on file at City Hall; and WHEREAS , the Planning Commission held a public meeting on October 2, 2018 to review the application, the minutes of which meeting are on file at City Hall; and WHEREAS , the City Council considered the application at its regular meeting on October 22, 2018, at which time the planning staff memorandum and the Planning Commission’s recommendations were reviewed and comments were heard by the City Council from the Applicant and staff; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Shorewood as follows: FINDINGS OF FACT 1.The subject property is located in a C-1, General Commercial zoning district. 2.Businesses with drive-thru service windows in commercial districts are allowed one menu board with up to 32 square feet. CONCLUSIONS A. The Applicants have satisfied the criteria for the grant of a variance under the Shorewood City Code and has established practical difficulty as defined by Minnesota Statutes. B. Based upon the foregoing, the City Council hereby grants the Applicant a variance to allow two additional freestanding signs (a pre-sale sign and a digital order confirmation monitor) in the drive-thru as shown on the plans submitted August 21 and September 25, 2018, subject to the following: 1.The applicant must acquire all necessary permits and no construction activity may occur until the permits are issued. 2.The combined total area of both the pre-sale and menu-board signs shall be no greater than 32 square feet. 3.The digital order confirmation monitor support and awning may not have any signage on, or attached to, the frame. C. The City Clerk is hereby authorized and directed to provide a certified copy of this resolution for filing with the Hennepin County Recorder or Registrar of Titles. ADOPTED BY THE CITY COUNCIL OF THE CITY OF SHOREWOOD this 22nd day of October, 2018. ____________________________________ SCOTT ZERBY, MAYOR ATTEST: _____________________________________ SANDIE THONE, CITY CLERK 2 LEGAL DESCRIPTION OF PROPERTY Those certain tracts of land situated in the County of Hennepin, State of Minnesota and more particularly described below: Tract A: That part of Lot 15, Vine Hill, described as follows: Commencing at a point on the east line of said Lot, distant 375 feet south of the northeast corner of said Lot; thence West perpendicular to said east line, along a line hereinafter referred to as Line "A" a distance of 188 feet to a point hereinafter referred to as point "X "; thence continuing West on said Line "A" to the west line of the east 330 feet of said Lot, and said Line "A" there ending; thence North along said west line of the east 330 feet a distance of 71.9 feet more or less to the southeasterly line of the right -of -way of State Highway No. 7; thence northeasterly along said southeasterly line a distance of 124 feet to the actual point of beginning of the land to be described; thence southeasterly along a line, which if extended would pass through said point "X ", to its intersection with a line drawn parallel with and distant 20 feet north from said Line "A "; thence East along said parallel line to said east line; thence North along said east line to the intersection with the southeasterly line of the right -of -way of State Highway No. 7; thence northwesterly and southwesterly along said right -of -way line to the actual point of beginning. EXCEPT that part of the east 133 feet of the above - described property lying north of a line described as follows: Commencing at the northeast corner of said Lot 15; thence South along the east line of said Lot a distance of 294.59 feet to the point of beginning of the line being described; thence deflecting right 90 degrees to the west line of said east 133 feet, and there ending. ►_VIBE, Tract B: Par I: That part of Lot 15, "Vine Hill" described as follows: Commencing at a point on the East line of said lot, distant 375 feet South of the Northeast corner thereof; thence due West a distance of 197.6 feet to the actual point of beginning; thence continuing West a distance of 132.4 feet; thence South, along a line extending to a point 330 feet due East of the Northwest corner of said Lot 15, a distance of 48.1 feet, thence Northeasterly a distance of 135.7 feet, more or less, to a point on the West line of the East 197.6 feet of said Lot 15, distant 20 feet South from the actual point of beginning; thence North to the actual point of beginning. Par 2: The West 14.6 feet of the North 20 feet of the East 197.6 feet of that part of Lot 15, "Vine Hill" lying South of a line running due West from a point in the East line of said lot distant 375 feet South from the Northeast corner of said Lot 15. Par 3: That part of Lot 15, "Vine Hill ", described as follows: Commencing at a point on the East line of said lot, distant 375 feet South of the Northeast corner thereof; thence due West a distance of 188 feet to the actual point of beginning of the land to be described; thence continuing West a distance of 142 feet, more or less, to a line drawn parallel to and distant 330 feet West from the East line of said Lot 15 and its extension; thence North along said parallel line a distance of 71.9 feet, more or less, to the Southeasterly line of the right -of -way of State Highway No. 7; thence Northeasterly along the Southeasterly line of said right -of -way of State Highway No. 7 a distance of 124 feet; thence Southeasterly to the actual point of beginning. (Certificate of Title No. 1432268) 6460521 vl (49470.05106.000) CITY OF SHOREWOOD HENNEPIN COUNTY, MINNESOTA ENCROACHMENT AGREEMENT THIS AGREEMENT ( "Agreement ") is made this day of , 2018, by and between the CITY OF SHOREWOOD, a municipal corporation under the laws of the State of Minnesota ( "City ") and Richard W. Denman and Linda P. Denman, husband and wife, and their successors and assigns ( "Landowner "). RECITALS WHEREAS, Landowner is the fee owner of the real property located in the City of Shorewood, Minnesota and legally described as follows: Lots 6 and 7 and that part of Lot 5 which lies southerly of a line described as follows: Beginning at the southwest comer of said Lot 5; thence easterly to a point on the easterly line of said Lot 5, distant 7.00 feet northeast of the southeast corner of said Lot 5 and there terminating, all in BALL'S ADDITION TO EXCELSIOR, Hennepin County, Minnesota, lying North of the following described line: Commencing at the southwest corner of said Lot 7; thence northeasterly along the westerly lines of said Lots 6 and 7, a distance of 82.83 feet to the point of beginning of the line to be described; thence southeasterly to a point on the East line of said Lot 6 distant 60.25 northeast of the southeast corner of said Lot 7 and there terminating. and made a part hereof ( "Property "). WHEREAS, the City currently has Drainage and Utility Easements ( "Easements ") over, under and across a portion of the Property, pursuant to the easements dedicated to the public recorded in the Office of the County Recorder, Hennepin County, Minnesota, which Easements are depicted on Exhibit A attached hereto and made a part hereof; and WHEREAS, Landowner seeks permission from the City to encroach upon the Easements by maintaining a cellar door extending about six feet into the easement and about four feet north of the southerly line of the Property (the "Improvements "); and AGREEMENT NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the parties agree as follows: 1. The City hereby approves an encroachment into and over the Easements by Landowner for the purposes of maintaining the Improvements over that part of the Easements as shown in Exhibit A subject to the terms of this Agreement. 2. Nothing in this Agreement shall be deemed a waiver or abandonment of the City's rights under the Easements. 4847 - 4290 - 2898.1 3. The Landowner shall be responsible for all costs relating to the maintenance and repair of the Improvements. 4. Landowner hereby agrees that any work done by the Landowner with regard to the Improvements will be warranted for a period of two (2) years from the date of the completion and approval of the City Engineer ( "Warranty Period "). If Landowner fails to repair the easement area within fourteen (14) days from the date of written notice, or sooner in the event that it is an emergency, then the City may enter upon the Property and make all necessary repairs and Landowner shall pay to the City all of the costs incurred by the City to repair. 5. Landowner further agrees that if the City, during its normal construction, reconstruction, maintenance and /or repair of the Improvements located within the Easements, that Landowner shall be responsible for removing, reconstructing and /or repairing the Improvements all in accordance with the Plans and Specifications and the City's only obligation shall be to fill the excavated area and level the same to the grade that it was prior to the City's excavation. Notwithstanding the above, in the event the City finds it is necessary to completely and totally restore easement area, the Landowner agree to remove the Improvements they have placed in the Easements. Landowner will promptly comply with said removal request at their expense and will remove the Improvements within fourteen (14) days of the written request by the City. 6. In the event that Landowner fails to take any action required in this Agreement and the City is required to make repairs, and the City incurs any cost, the Landowner agrees that if Landowner fails to pay the City, that the City may take any and all actions permitted by law to collect the same and the City may further levy an assessment against the Property for all costs incurred by the City. Landowner waives any and all rights to challenge or appeal the assessment. 7. Landowner and his successors and assigns do hereby agree to defend, indemnify, and hold the City harmless from any and all costs and expenses, all claims and liability, including attorney's fees, relating to or arising from granting the Landowner the permission to encroach on the Easements for the maintenance, use, and operation of the Improvements, including third party claims that may occur. 8. All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed given if personally delivered or mailed, certified mail, return receipt requested, to the following: TO THE CITY: City Administrator 5755 Country Club Road Shorewood, MN 55331 TO THE LANDOWNER: Richard W. Denman or Linda P. Denman 5865 Glencoe Road Shorewood, MN 55331 or to any successors or assigns of the Landowner or City, or any future address of the Landowner or City, if Landowner or City gives the other party notice of said change of address as provided pursuant to the provision for notice herein. 9. This Agreement shall be recorded against the title to the Property. 2 4847 - 4290 - 2898.1 CITY OF SHOREWOOD IN Scott Zerby, Mayor Greg Lerud, City Administrator STATE OF MINNESOTA ) ss. COUNTY OF HENNEPIN ) LANDOWNER 'Zz / The foregoing instrument was acknowledged before me this day of , 2018, by Scott Zerby, Mayor and Greg Lerud, City Administrator, of the City of Shorewood, a Minnesota municipal corporation, on behalf of the corporation and pursuant to the authority granted by its City Council. Notary Public STATE OF MINNESOTA ) ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this teday of , 2018, by Richard W. Denman and Linda P. Demean, Husband and wife. p�'� ANDREA S VOGT NOTARY PUBLIC - MINNESOTA MY COMMISSION EXPIRES 01/31/23 This instrument prepared by: Kutak Rock, LLP. 60S.6 1h St, Ste. 3400 Milnicapolis, MN 55402 -4018 (TJK) otary Public 3 4847 -4290- 2898.1 7 �o N 0 NJ I Area of Encroachment ���I2CpE -np(rd 1% 4 CITY OF SHOREWOOD RESOLUTION NO. 18- A RESOLUTION AUTHORIZING ENCROACHMENT AGREEMENT WHEREAS , Richard W. Denman and Linda P. Denman (Applicants) desires to keep a cellar door that provides access to their basement at 5865 Glencoe Avenue but is located within a drainage and utility easement; and WHEREAS , the City has certain rights within the drainage and utility easements that would otherwise prohibit structures from encroaching; and, WHEREAS , the City Council reviewed the request for an encroachment agreement and found their interests would be maintained. NOW, THEREFORE, IT IS RESOLVED that the City Council of the City of Shorewood hereby approves the encroachment agreement and authorizes the Mayor and City Administrator to execute the agreement on the City’s behalf. ADOPTED BY THE CITY COUNCIL OF THE CITY OF SHOREWOOD this 22nd day of October, 2018. ___________________________ Scott Zerby, Mayor ATTEST: ________________________________ Sandie Thone, City Clerk # 9A MEETING TYPE City of Shorewood Council Meeting Item REGULAR Title / Subject: Investigation of Solid Waste Collection – Resident survey Meeting Date: October 22, 2018 Prepared by: Greg Lerud, City Administrator Reviewed by: Tim Keane, City Attorney Attachments: Proposal from Morris Leatherman Company Background: At the September 24 work session, the council discussed continuing to investigate solid waste collection in Shorewood, and the consensus was to consider a survey as a next step in the process. Specifically, the council wanted to consider a scientific survey conducted by an experienced company. Council directed staff to obtain proposals for conducting a survey of residents as the next step in investigating solid waste collection. Following that meeting, staff contacted three firms that conduct opinion surveys. One response was received, from Morris Leatherman Company. Their proposal is attached and the quotation is in the amount of $7,000. th There was a question raised at the meeting on the 24 about the MN Supreme Court decision in the matter of the Hands Off Our Cans versus the City of Bloomington regarding holding a referendum on an issue – in this case, having a city-wide vote regarding organized collection. The petitioners in the Bloomington case sued the city and argued that residents have the right to petition to amend the city’s charter and put the question of garbage collection on the ballot. The Supreme Court found in favor of the residents. Bloomington is a home-rule, or charter city. A charter city creates a charter that grants the city, and the residents of those cities, certain powers provided the powers do not conflict with state law. There are 107 charter cities in the state and some of them allow residents to propose ballot initiatives. This authority is not permitted in the other approximately 725 statutory cities like Shorewood. In fact, in statutory cities, there are strict limitations to the type of ballot questions that can be asked of residents, and there are only two specific exceptions to the rule prohibiting advisory elections; the first is whether the city should join a special district or similar independent governmental body that has taxing powers, and the second is a vote to adopt a city charter. Because cities only have powers that are specifically authorized in statute, and there is no statutory provision that allows an advisory election regarding solid waste collection. In other words, the city is prohibited from holding a referendum election in this matter. This is not to say, however, that the city is otherwise limited in seeking citizen input. The city can have a survey and gather resident input in any other way it determines – it is not just not permitted to conduct a referendum on the question. 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 Financial or Budget Considerations: There is sufficient money in the recycling fund to pay for the cost of the survey. Options: 1)Accept the proposal from Morris Leatherman. 2)Reject the proposal and give staff alternative direction Recommendation / Action Requested: Staff recommends accepting the proposal from Morris Leatherman company. Next Steps and Timeline: If the proposal is accepted, staff will advise the company. The proposal calls for a session to develop the questionnaire, and we will work with the company to facilitate that meeting. THE MORRIS LEATHERMAN COMPANY 3128 Dean Court Minneapolis, Minnesota 55416 September 27, 2018 Mr. Greg Lerud City of Shorewood 5755 Country Club Road Shorewood, Minnesota 55331 Dear Greg: The Morris Leatherman Company is pleased to present this survey research proposal to you for the City of Shorewood. This prospectus is organized in three parts: a potential design; project schedule; and, estimated project costs. As you will see, I am certain that MLC can provide the City of Shorewood with the information it seeks in both a cost-effective and timely manner. DESIGN OF THE RESEARCH: The Morris Leatherman Company, Ltd., proposes to conduct a telephone survey of 400 randomly selected households in the City of Shorewood. A sample of 400 residents would provide results projectable to the entire city adult population within ± 5.0 percent in 95 out of 100 cases. The sample is also of sufficient size to permit the district to be divided into a maximum of four categories for more detailed analysis, such as age, mobility, home ownership, location of residence, presence of children, and other demographic characteristics. To insure the integrity of the sample, MLC places the most exacting sampling standards in the industry on our procedures. MLC uses a mix of random digit dial landline and cell phone numbers. Before an alternate household is substituted for a designated target, at least ten tries are made to contact the initial households during a five-day period. The telephone calls take place during various times on weekday evenings and during the weekend. Our interviewers are also instructed to seek convenient appointments with interviewees, cutting our non-contact rate to less than five percent on average. An unbiased selection process is also used to identify the adult member of the household to be interviewed. To validate the completed sample, the latest United States Census updated population characteristics are utilized as a standard of comparison. The questionnaire would be administered by MLC trained and supervised personnel. The computer analysis will be obtained from our in-house C-MENTOR and SPSS statistical analysis City of Shorewood Residential Survey Research Proposal September 2018 systems, insuring both access to the most current analysis programs and confidentiality of the data set. The City of Shorewood will be presented with bound copies of the final report highlighting all the major findings of the study. MLC will also speak to any major differences from and similarities with the past studies of the community, when applicable, in addition to other maturing communities. A volume of all computer-generated cross tabulations and other multivariate statistical techniques will also be included. PROJECT SCHEDULE : 1. Planning with City Council Members, City Staff, and/or relevant individuals to establish the topics to be covered in the survey. Based on these topic concepts, MLC would word specific, neutral questions. This activity can be completed by a meeting, telephone and/or fax, depending on client wishes, within two weeks of the initiation of the contract. 2. Structuring of questions and final approval of the survey instrument. These activities are usually completed within three weeks of the discussion of topics to be covered in the survey. 3. Final determination of the field dates for interviewing. 4. Pre-testing and, if needed, approval of resulting revisions. This activity is usually completed by the second day of fieldwork. 5. Completion of all fieldwork within a two week period. 6. Computer analysis and preparation of written report. All analytical tests and commentary will be available within four weeks after completion of the fieldwork. 7. Delivery of the final written report to the City of Shorewood, including presentation graphics. Afterwards, telephone consultation, as the need arises, will be provided about the study’s findings and implications. PROJECT COSTS: The cost of a survey is driven by two factors: sample size and questionnaire length. The cost to conduct a 20 question unit survey would be $7,000.00. Each additional question unit beyond the initial allotment would be $135.00. City of Shorewood Residential Survey Research Proposal September 2018 As company policy, MLC requires one-half of the cost prior to the commencement of fieldwork; the remainder is due upon delivery of the final written report. Unless otherwise arranged, MLC invoices clients for the initial payment at the time of the initiation of the contract; the remainder is due at the time of the receipt of the final written report. If you require any further information from us, feel free to contact either Bill Morris, Diane Traxler, or me. We look forward to the opportunity to work with the City of Shorewood. Sincerely, Peter Leatherman Peter Leatherman Managing Partner # 9B MEETING TYPE City of Shorewood Council Meeting Item REGULAR Title / Subject: Purchase Agreement for 26245 Smithtown Road Meeting Date: October 22, 2018 Prepared by: Greg Lerud, City Administrator Reviewed by: Tim Keane, City Attorney; Alyson Fauske, City Engineer Attachments: Map, MCWD Report, Resolution Background: The city started working with the Minnehaha Creek Watershed District (MCWD) last year in a cooperative effort to address drainage issues in the western part of the city by constructing a trunk storm water system. The system is going to be required to provide storage for rate and volume control as well as storage. As city staff and MCWD staff considered alternatives it became obvious that land acquisition was going to be needed because the ditch channels do not provide enough volume and rate control, and the area in Freeman Park is at an elevation that does not provide the needed storage. A parcel along Smithtown Road was identified as meeting the location and size requirements. Staff contacted the property owner and they indicated a desire to sell, so an appraisal of the property was ordered. The appraisal valued the property at $585,000. Following the appraisal, city staff negotiated with the property owner and reached a conditional agreement for the purchase of the property for $590,000. There were two conditions for the purchase. First, the city council needed to approve the purchase. Second, the city wanted concurrence from the MCWD that this property is necessary to address the storm water needs. The attached MCWD Report, specifically beginning on page 8, provides support for this parcel being used as a storm pond. Financial or Budget Considerations: The city’s stormwater fund has sufficient funds to complete this purchase. Options: 1)Approve the purchase agreement 2)Not approve the purchase agreement and give staff additional direction Recommendation / Action Requested: Staff recommends approving the purchase agreement by passing the attached Resolution. The trunk system project is not slated to start for two years, but the opportunity to acquire a parcel located in the right place and for the appraised value should not be passed on. Next Steps and Timeline: If the Council approves the purchase agreement, staff will work with the seller and their representative to complete the sale as soon as 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 CITY OF SHOREWOOD RESOLUTION NO. 18 –110 RESOLUTION APPROVING PURCHASE AGREEMENT FOR THE PROPERTY LOCATED AT 26245 SMITHTOWN ROAD WHEREAS, the City of Shorewood is in the planning stages of improving the storm water trunk system in the western part of the city; and, WHEREAS, City staff has been working cooperatively with the Minnehaha Creek Watershed District to identify the future system requirements, and those requirements include facilities for rate and volume control, as well as storage; and, WHEREAS, existing city-owned land has been evaluated and determined it will not provide adequate storage to accomplish those goals; and, WHEREAS, City staff identified a parcel that does meet storage needs, and has negotiated a conditional purchase agreement for the parcel, NOW THEREFORE BE IT RESOLVED by the Shorewood City Council: 1.Finds that this purchase is in the best interests of the city. 2.Approves the purchase of the property located at 26245 Smithtown Road, pursuant to the terms of the agreement. 3.Directs staff undertake those steps necessary to complete the purchase of the property. nd Adopted this 22 day of October, 2018. ______________________________ Scott Zerby, Mayor ATTEST ____________________________ Sandie Thone, City Clerk /z·ä šE {wš©;ޚš7 D;“;©Œ Cғ7 {··;’;“· šE w;Ý;“Ò;­r 9ã¦;“7z·Ò©;­ “7 /w“m;­ z“ w©šÒmw ·w; aš“·w 9“7;7 {;¦·;’,;© r  ›…“Ò7z·;7œ /Ò©©;“·/Ò©©;“·/Ò©©;“·t©zš© FinalYear-to-DateYear-to-DateVarianceYear-to-Date BudgetAmount% of BudgetWith FinalAmount 201809/30/1809/30/18Budget09/30/17 REVENUES: Taxes$ 5,369,245$ 3,257,35260.7%$ (2,111,893)$ 2,654,194 Licenses and Permits 245,155 381,598155.7% 136,443 190,448 Intergovernmental 91,250 100,877110.6% 9,627 89,959 Charges for Services 53,885 44,80183.1% (9,084) 55,153 Fines and Forfeitures 60,000 44,48474.1% (15,516) 50,239 Special Assessments - 1,928 N/A 1,928 - Miscellaneous 215,000 176,17481.9% (38,826) 183,084 Total Revenues 6,034,535 4,007,21466.4% (2,027,321) 3,223,077 EXPENDITURES: Current: General Government 1,363,543 993,80272.9% (369,741) 1,079,155 Public Safety 2,220,146 2,027,62491.3% (192,522) 1,942,239 Public Works 1,223,227 711,39158.2% (511,836) 519,248 Parks and Recreation 262,821 183,40869.8% (79,413) 192,264 Total Expenditures 5,069,737 3,916,22577.2% (1,153,512) 3,732,906 Excess of Revenues Over (Under) Expenditures 964,798 90,9899.4% (873,809) (509,829) OTHER SOURCES (USES): Transfers In 25,000 25,000100.0% - 25,000 Transfers Out (1,163,895) (1,163,895) 100.0% - (1,804,913) Total Other Sources (Uses) (1,138,895) (1,138,895) 100.0% - (1,779,913) Excess of Revenues & Other Sources Over (Under) Expenditures & Other Uses (174,097) (1,047,906) 601.9% (873,809) (2,289,742) FUND BALANCES: January 1 4,162,049 - 4,604,583 September 30$ 3,114,143$ (873,809)$ 2,314,841 BalanceBalance 20182017 CASH: January 1$ 3,265,573$ 3,983,586 Increase (Decrease) in Cash (170,226) (1,693,940) September 30$ 3,095,347$ 2,289,646 /z·ä šE {wš©;ޚš7 D;“;©Œ Cғ7 {··;’;“· šE 9ã¦;“7z·Ò©;­ “7 h·w;© …­;­ ,ä t©šm©’ w©šÒmw ·w; aš“·w 9“7;7 {;¦·;’,;© r  ›…“Ò7z·;7œ /Ò©©;“·/Ò©©;“·/Ò©©;“· t©zš© FinalYear-to-DateYear-to-DateVarianceYear-to-Date BudgetAmount% of BudgetWith FinalAmount 201809/30/1809/30/18Budget09/30/17 EXPENDITURES: Current: General Government Council 84,100 54,437 64.7% (29,663) 54,190 Administration 447,024 318,09771.2% (128,927) 321,044 Elections 21,975 6,71430.6% (15,261) - Finance 172,483 135,93778.8% (36,546) 133,335 Professional Services 240,000 157,43865.6% (82,562) 218,058 Planning 190,361 174,66891.8% (15,693) 213,421 Municipal Buildings 207,600 146,51170.6% (61,089) 139,107 Total General Government 1,363,543 993,80272.9% (369,741) 1,079,155 Public Safety Police Protection 1,449,930 1,247,00386.0% (202,927) 1,198,090 Fire Protection 625,953 651,925104.1% 25,972 629,587 Protective Inspections 144,263 128,69689.2% (15,567) 114,562 Total Public Safety 2,220,146 2,027,62491.3% (192,522) 1,942,239 Public Works City Engineer 89,500 54,194 60.6% (35,306) 41,545 Public Works Service 1,019,797 553,99654.3% (465,801) 436,365 Ice and Snow Removal 113,930 103,20190.6% (10,729) 41,338 Total Public Works 1,223,227 711,39158.2% (511,836) 519,248 Parks and Recreation Park Maintenance 196,932 143,92473.1% (53,008) 153,056 Recreation 65,889 39,484 59.9% (26,405) 39,208 Total Culture and Recreation 262,821 183,40869.8% (79,413) 192,264 Total Expenditures 5,069,737 3,916,22577.2% (1,153,512) 3,732,906 OTHER USES: Transfers Out 1,163,895 1,163,895100.0% - 1,804,913 Total Expenditures & Other Uses 6,233,632 5,080,12081.5% (1,153,512) 5,537,819