110689 CC Reg Min
CITY OF SHOREWOOD
STUDY SESSION
MONDAY, NOV. E:lV1BER 6, 19E 9
COUNCIL CHAMBERS
5755 Country Club Rd.
7:30 P.M.
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CALL TO ORDER
Mayor Haugen called the Study Session of the Shorewood City Council
on November 6, 1989, to order at 7:30 p.m., In the Council Chambers.
ROLL CALL
Present: Mayor Haugen, Councilmembers Brancel, Gagne, and Stover.
Staff: Administrator Whittaker and Public Works Director Zdrazil.
APPROVAL OF MINUTES
Gagne moved, seconded by Brancel,to approve the Minutes of the
October 2, 1989, Study Session as written. Motion carried 4-0.
CITY LOGOS
Whittaker explained that the film logos used to mark City vehicles
were running low. Five-color decales would cost over $30.00 per
vehicle and all-black logos cost $16.00 per vehicle. Film with
"City of Shorewood" cost under $13.00 per truck. The Council de-
cided to forget the logos in the interest of economy.
SIGN INVENTORY
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Zdrazil explained that Hennepin County would inventory and replace
all inadequate signs in.the City from Federal funds if the City
agrees to pay 10% of the cost.
Gagne moved, seconded by Stover, to authorize the expenditure of
up to. $1' ,000.00 in City funds for the sign inventory and replacement.
Motion carried 4-0~
Councilmember Wattenand Finance Director Rolek arrived at 7:39 p.m.
STRIPING STREETS
Zdrazil advised the Council that LakecLinden Road could be striped
for $400. The Council decided Smithtown Road should also be striped
if funds can be found in the stiping budget or there is a surplus in
the street repair budget.
Watten moved, seconded by Brancel, to stripe a double line down Lake
Linden and Smithtown Roads if the budget permits. Motion carried 5-0.
FREEMAN PARK
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The Council discussed OSM's offer to reimburse the City $4,906.30,
the out-of-pocket costs to bring the ball fields in Freeman Park to
specifications. Mayor Haugen said she was happy to see the negotiation.
Gagne and Stover agreed it was a good compromise. Mayor Haugen
said a note of commendation should be put in Sue Niccum's personnel
file for her efforts to complete the project.
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MINUTES, MONDAY, NOVEMBER 6, 1989
PAGE 2
FREEMAN PARK -
(continued)
Gagne moved, seconded oy Brancel, to accept the offer of $4,906.30
from OSM to cover the City's out-oi-pocket expenses to restore the
Freeman Park ballfields to specifications. Motion carried 5-0.
Zdrazil advised the Council that he had not found enough matching posts
to complete the barrier around the parking lot and between the trail
and the ballfields. Watten offered to check his suppliers.
Zdrazil said the ballfield fences were nearly in and that a special
wrench had to be made to control the hydrant near the south field.
He said his crew had repaired the hole near the entrance to the park
off Highway 7.
Whittaker advised the Council that OSM had billed the City $5,747.41,
to date, for the specifications and inspection of the fences in Freeman
Park. The Council asked if O?M's contract called for a flat fee on
projects - such as 15% of construction costs. Whittaker said he would
check.
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Gagne and Brancel asked if this might be an excessive charge for
the services since the specifications were largely provided by
George Haun and fences didn't require much specification or in-
spection. Whittaker and Zdrazil agreed it might be excessive and
that George Haun had proposed to do it for $1,200. The Council
agreed to discuss this bill and the entire engineering costs with
Mr. Norton at the next meeting.
Watten asked the Council to consider lighting the trail on the
Hennepin County Light Rail Rapid Transit right-of way. Haugen
and Stover expressed reluctance and the Council agreed not to
at this time.
BUDGET TRENDS
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Rolek explained the trends in market value, general operating
budgets, tax levies, general fund reserve balance, population
and households in the City since 1985. Whittaker summarized
them saying market value had increased 56.2 %, housing had in-
creased 26.3% and pppulation was up 22.4% while the tax levy
had increased just 11%.
Whittaker said that the budget had increased 33.2% but that most of
that was due to an increased budget for Building Inspection and plat-
ting reviews for new developments and the improved reserve in the
General Fund to carry the City from one property tax payment to
the next. Most of the revenue needed to accomrmodate these increases
had come from new permits and developments.
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MINUTES, MONDAY, NOVEMBER 6, 1989
STUDY SESSION
PAGE 3
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STATE AIDS
Whittaker explained that the new State property tax laws transfered
State Aids from the City to the School District. Therefore, the
City w~ll have to increase property taxes to offset lost aids and
the School District will be required to decrease its property tax
levy for the general fund to offset the increased aids. This trans-
fer should not increase over-all property taxes. However, the School
District may increase tax levies for other funds and, therefore, in-
crease property taxes.
The law also changes the way in which the taxable value of property
is calculated. The new formula for converting market values to tax
capacity will redistribute the property tax burden and create tax
increases or decreases for some properties even if the City's levy
does not change the over-all tax rate. In short, it will be very
difficult to calculate the impact on an individual property - and
harder to explain.
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The Council agreed with Watten that we should try to develop graphics
and charts to explain the changes for the public hearing December 11.
Mayor Haugen suggested the staff also tell residents how many new parcels
the City has, new miles of street and additional acres of developed
park property to demonstrate the need for growth in the budget.
GENERAL FUND RESERVES
Rolek presented a graph showing the variations in the cash flow
reserve over the year. The reserves decrease from January to
June, when the first installment of property taxes is received from
the County. They then, jump up and gradually decline until :bhe~ecember
installment is received. This demonstrates the need for the current
reserve.
He also said there is n6 plan to add to the reserve in 1990. The current
GeneralF'und Reserve Level will be adequate. And', if the
Ci ty trans fers surplus revenues into the fund a.t the end of each year,
it may not be necessary to levy taxes to maintain the fund. If ex-
penditures from contingencyr~funds exceed the budget or there is a reve-
nue shortfall in any year, the City may, again, have to levy to main~
tain this reserve.
CONTINGENCY
Rolek advised the Council that the City had expended $40,401 in 1989,
to date, that was not budgeted or expected. He said this has been
typical and that the City, therefore, needed to establish a contingency
fund for such emergencies. The Council agreed to leave that in the
proposed budget.
. TAX IMPACT
Brancel asked the staff to prepare a chart showing the impa~tof the
new tax laws and the proQosed budget on a $100,OaO home. Gagne sa~d
it should be done for a ~200,000 home also.
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MINUTES, MONDAY, NOVEMBEK 6, J98~
STUDY SESSION
PAGE 4
~ WORKING CAPITAL
Whittaker explained that this fund was separated from compensation
in each budget area and was the amount reserved for adjustments in
employee compensation due to Step increases, Comparable Worth, and
normal cost-of-living and merits raises.
The Council reviewed the preliminary rankings for employees developed
through the PDI/MAMA evaluation system. Whittaker said he would
check to see if adjustments due to the evaluation had to be made in
one year. He explained that evaluation points do not equate to a
dollar value but show relative value of a job compared to others in
the City. A difference of a few points was not significant; but a
difference of five or more points is. The final report is due next
week, Whittaker said; and, the Council and employees can, then, re-
view the ranking and develop a final pay plan and Compo Worth com-
pliance plan. Watten said point ranges might be sufficient as long
as each employee is within an appropriate range.
PAY RANGES
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Whittaker explained the proposed Pay Ranges for 1990. He said it
would take more than was budgeted for Working Capital to bring every-
one to their proper place in the ranges after they are adjusted for
Compo Worth. He said he would develop a final recommendation.at5ter
Compo Worth was complete and Department Heads had completed perfor-
mance reviews. He also said he would prefer to complete negotiations
with the Public Works employee union before December 4 so that all
the compensation adjustments could be in the 1990 budget instead of
the "Working Capital" fund.
EQUIPMENT REPLACEMENT
Whittaker advised the Council that funds for Equipment Replacement
were lower in 1990 as most major equipment had been replaced re-
cently. He and Stover indicated that these funds were listed in
each department, were not included in Capital Improvements funds,
and were developed by calculating the life expectancy of each piece
and dividing the cost over that time.
Gagne asked if these would be adequate to maintain the fleet and was
assured they are.
CAPITAL IMPROVEMENTS
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The Council reviewed the list of suggested capital projects developed
in August. They agreed that the City should formally adopt a Capital
Improvements Program in 1990 and that the amount set aside for these
expenses was easily necessary and certainly defensable,given the
expenses expected. The Council decided they could not pick specific
improvements \ without evaluating all of them.
WATBR AND SEWER BUDGETS
Rolek said the water department was generating more revenue so the
fund deficit was improving. Gagne said the Council should review
its policies on water. Mayor Haugen said this and assessment policies
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MINUTES - MONDAY, NOVEMBER 6, 1989
STUDY SESSION
PAGE 5
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should be priorities for future study seSSlons.
The Council briefly reviewed capital improvements for the water system
and Haugen asked why a main was planned under Highway 7. Whittaker
said the water tower was designed to serve the entire eastern part of
the City and a main under Hwy. 7 would be necessary to improve pressure
and relieve the pumps at Amesbury - and should be cheaper to build
with the intersection, if one is built.
Haugen mentioned that the park program is underfunded. Gagne said the
improvement list should be refined and the Council should consider a
referendum on the financing of these improvements. Park dedication fees
and current General Fund reserves would not be adequate to finance all
of the improvements.
LINE ITEMS
While the Council had no questions about specific line items in the
budget, Stover expressed concern about the over-all tax levy. Gagne
asked if other cities rates were lower because many public improvements
were paid for through Special Assessments and not included in the
general tax levy.
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Rolek said that was true and would check with neighboring cities to
see what their assessment policies were. He said the city's ranking
for over-all taxes had improved in spite of the fact that few city
projects were separated from the levy by special assessment. In 1984,
the City ranked 6th highest among 44 Metropolitan cities in property
tax rate. The City ranked 18th in 1989.
BUDGET HEARING
RESOLUTION 93-89
Mayor Haugen explained that the City must reschedule the Final Public
Hearing on the 1990 Budget because of changes in the State Law. Rolek
said the City won't have complete information until the end of November
and did not have to certify the budget until December 28, 1989; but
has to certify a Preliminary Levy by November 15, 1989.
Gagne moved, seconded by Brancel, to adopt Resolution 93-89, "A Resolu-
tion approving the proposed 1990 General Fund Budget and 1989 Prelim-
inary Property Tax Levy collectible in 1990 and setting a Public Hear-
ing" for December 11, 1989, at 7:45 P.M., to be continued December 12,
1989, if necessary. Motion carried 5-0.
Gagne moved, seconded by Stover, to move the Regular December City
Council meeting to December 4, 1989, at 7:30 P.M. Motion carried 5/0.
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The Council agreed that it would hold a meeting on November 20, 1989,
because the Regular Council Meeting on November 13 would be too busy
to complete work on all possible Agenda items. No meeting will be
held November 27, 1989, unless absolutely necessary. Watten said he
would not be able to attend a meeting November 27, if held.
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MINUTES, MONDAY, NOVEMBER 6, 1989
STUDY SESSION
PAGE 6
WEST HENNEPIN HUMAN SERVICES
Mayor Haugen asked the Council if they would like to recommmend
Hennepin County cut expenses across the board rather than eliminate
specific programs. The Council agreed that the County was in a
better position to evaluate these alternatives than the City is.
STATE SURVEY ON SOCIAL/ECONOMIC NEEDS IN THE FUTURE
Mayor Haugen asked for Council input. Hearing none, she instructed
the Administrator to forward her comments to the State.
FORMAT FOR COUNCIL HEARINGS
The Council referred .to Whittaker's Nov. 2, 1989, Memo. Haugen
suggested speakers alternate between "pro" and "con". Stover said
the meeting might become a debate. Gagne expressed concern that
the Council would not have sufficient time to deliberate on the
issue. Watten asked why the Council wanted to duplicate the Plan-
ning Commission's hearing. He said the Council should honor the
process established by Ordinance and past practice.
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Brancel said many residents had not been heard as they were not
organized before the first hearing and did not expect any change
in previous plans for the Old Market Road intersection. Gagne
agreed.
Stover expressed concern that a formal process be observed so that
everyone could be heard and the Council would have time to act.
She also said the press reports made it appear that this Council
meeting would leave time for public comments.
Whittaker asked the Council if all questions should be asked by
the Council rather than the public. He said he believed the
Council should decide which issues staff and the developer should
address. Brancel agreed. The Council agreed that the public should
raise their questions during the comment period.
The Council agreed that the Regular City Council meeting on Nov. 13,
1989, would include a time for public comments on the Third Phase
of Waterford from 7:30 to 9:30 p.m. Each person would have three
minutes. Those favoring the proposal would speak first. Those
opposed would speak after that. If there is time left, speakers
may expand on issues not covered.
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The developer would be asked to respond
be no formal rebuttal scheduled and the
to respond to questions if appropriate.
direction to the staff and developer.
by the Council. There would
Council would direct staff
The Council would, then, give
WATERFORD HOMEOWNERS ASSOCIATION MEETING
Mayor Haugen reported that she and Councilmember Brancel had attended
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MINUTES, MONDAY, NOVEMBER 6, 1989
STUDY SESSION
PAGE 7
WATERFORD (continued)
a neighborhood meeting on the Old Market Road Intersection in-
cluded in the Third Phase of Waterford development, at the home
of Bob and Matty Snyder.
The Council reviewed a letter from Mr. and Mrs. Snyder summarizing
that meeting, dated October 30, 1989. Haugen said she had advised
those present that she was one of five Council members and could
not act alone. She told them she would take their concerns back
to the Council.
The issues raised were:
Neighborhood meeting(s) with City staff to find a compromise plan
for Old Market Road.
Hiring another Attorney to review all of the opinions and make
a recommendation to the City on its obligations and liabilities.
Having a time for public comment at the Nov. 13, 1989, Council
meeting.
Resolving questions about financing the intersection before acting
on the plan for it.
City publication on the cost and risk of the intersection.
Financing the intersection, particularly Tax Increment Financing.
Residents advance knowledge of the intersection before buying homes.
Neighborhood Meeting
Stover said the neighbors could meet with the developer on their own.
It would be difficult to identifLrepresentatives for all interested
parties. Ultimately the Council would have to review this and decide.
It cannot delegate its powers or responsibility to another group.
That process should be open to everyone and done at a Regular Council
meeting so that everyone interested can be involved.
Watten agreed it is inappropriate for the Council to operate outside
the public forum. The Nov. 13 meeting IS our effort to involve
everyone and explore alternatives.
Brancel said the meetings might be useful and lead to a compromise.
Gagne said alternatives had been considered for six years and the
Council needs to act.
Brancel moved, seconded by Gagne, to spearhead a neighborhood meeting.
Gagne said the Council should wait until after the 13th to see if
a meeting is needed. Brancel and Haugen voted Aye, 3 Nay. Motion
failed.
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MINUTES, MONDAY, NOVEMBER 6, 1989
STUDY SESSION
PAGE 8
WATERFORD (continued)
Third Party Legal Opinion
Gagne said you could get 10 attorneys to give 10 op~n~nns and
all would depend on your point of view. He recommended the City
accept the opintonof the City Attorney or change attorneys. We
pay our attorney for objective opinions and advice on our respon-
sibilites and liabilities.
Watten said only an arbitrator or
opinion and resolve differences.
process. The City cannot just go
opinion.
a court could render such an
There would have to be a legal
out and take another attorney's
Stover said we should rely on our attorney and, if necessary, let
a court decide if the Council acted reasonably.
Brancel moved, seconded by Haugen, to accept the suggestion that
the City get a third party opinion on the legal responsibilities
the City has with respect to the intersection. In discussion,
the Council concluded that it should have the input of all the
interested parties at the November 13 meeting before taking action
on any of the recommendations in the Snyder letter. The motion
was withdrawn. The Council directed the Administrator to write
to the Snyders advising them of this position, indicating that there
would be time for commentsH from the public, advising tnemthatHthe
Council must hold the meeting;on Nov. 13 as it was already announced
and there is not time to reschedule it and notify everyone, and
that the Council would consider the points made in this letter and
all comments made to the Planning Commission and all correspondence
from the public before deciding what action to take on the inter-
section. (Both letters attached to and hereby made a part of these
minutes.)
The Council agreed that Mn/DOT should be present at the Nov. 13
meeting to address their position on the intersection and the
Hennepin County should also be asked to present information on
plans for the Crosstown and Highway 101 as it might affect Old
Market Road.
EMPLOYEE RELATIONSHIP POLICY
The Council offered no amendments or corrections to the proposed
job description for the Deputy Clerk. Haugen said the Orgnizational
Chart should have a line connecting the contractors to the Council.
The Council agreed with the Administrator's recommendation for
changes in funeral leave and agreed to leave the sick leave policy
as it is. The Council instructed the Administrator to place
these amendments to the policy on the November 20, 1989, Council
agenda for action.
PRIORITIES FOR 1990 - The Council postponed review because of the hour.
Stover reported she had received a letter from the Christmas Lake
Homeowners association thanking the City for the Milfoil inspections.
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MINUTES, MONDAY, NOVEMBER 6, 1989
STUDY SESSION
PAGE 9
COUNCIL REPORTS - none
EXECUTIVE SESSION
Mayor Haugen adjourned the Council to Executive Session at 11 :27 p.m.
to consider Labor Negotiation strategy and Private Data.
Mayor Haugen reconvened the Study Session at 11 :54 p.m.
Gagne moved, seconded by Stover, to adjourn the Study Session at
11:55 p.m. Motion carried 5-0.
RESPECTFULLY SUBMITTED,
Laurence E. Whittaker
City Administrator/Clerk
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MAYOR
Jan Haugen
COUNCIL
Kristi Stover
Robert Gagne
Barb Brancel
Vern Watten
CITY OF
SHOREWOOD
5755 COUNTRY CLUB ROAD . SHOREWOOD, MINNESOTA 55331 · (612) 474-3236
November 9, 1989
Mr. and Mrs. Robert Snyder
19855 Chartwell Hill
Shorewood, MN 55331
Dear Mr. and Mrs. Snyder:
The City Council reviewed your October 30th, 1989, letter Monday evening,
November 6, 1989 in detail. After considerable discussion, the Council agreed:
1) The November 13th meeting must be held as scheduled as it was announced
at a public meeting and there was not adequate time to arrange and
notify all interested parties of a change;
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2) The Council would benefit from the comments made at that November 13th
meeting;
3) The Agenda for the November 13th meeting will provide for 2 hours of
public comment (agenda enclosed);
4) The Council should not act on the areas itemized in your letter until
that public comment is considered; and,
5) All of the concerns, suggestions and comments presented to the Planning
Commission and the Council will be weighed carefully before any action is
taken on the Preliminar~ Plan for Waterford Third Phase~
;;:: .
If y6u have an~ questioris about this position, please call. me. If not, I will
look forward to your.particifpation Monday..evening.
! '"",..l.
Very truly yours,
CITY OF SHOREWOOD
~UA~. WW~
La~rence E. Whittaker ,
City Administrator
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cc: Council
George Sherman
Brad Nielsen
GlennF"roberg
Jim Norton
~'Ii f,':: "..;
LEW/al
A Residential Community on Lake Minnetonka's South Shore
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uctobet- ~\_l. 1 ttl:::'7
Counc:L J 1"lemOet-::
Shorewood Cltv Hall
Shore~~ood . I"II\! 55331
~ear Councll Members~
un uctober 30th. 1989. the Shorewood ReSIdents for Safe
Nel~hborhoods held a meetln~ to dISCUSS the Issue ot
representatIve government fOCusIng on the proposed OMR
IntersectIon. Jan Hau~en was InvIted to attend to help the
group explore ways to be represented at the City Council.
barb brancel was also In attendance at the request of the
COLlnC 1 I .
rl1e followIng contaIns a summary of the ma.lor actIons agreed
to by Mayor Haugen to help thIS group present Its POSItIon.
1. Mayor Haugen agreed to spearhead a meetlng/s
between a representatIve from each of the S.E.
neIghborhoods and the approprIate City staff. (It
would be helpful to also Involve one CouncIl member.)
rhe purpose of these seSSIons would be to try to arrIve
at a compromIse pOSItIon on the traffIC plan for the
S.E. Shorewood area.
2. Mayor Haugen agreed to advocate that the CIty of
Shorewood hIre a thIrd party attorney (one agreed upon
by both the CIty and Shorewood ReSIdents for Safe
NeIghborhoods) to render an Independent opInIon on
whether the CIty of Shorewood has a legal oblIgatIon to
frivesco concernInq the development of an IntersectIon
Cl.t Ol-If<.
3. Mayor Haugen assured the group that there WIll be a
publIC portIon at the CouncIl meetIng when the OMf<
IntersectIon wII I be voted on and/or dIscussed.
4. Mayor Haugen agreed that she wil I not vote on the
OMR intersectIon untIl all questions about finanCIng
and other matters are answered and In place. She ~ll I
encourage other Council members to do the same.
5. Mayor Haugen witl oversee a publIcatIon contaInIng
the financIal InformatIon pertaInIng to the proposed
OMR IntersectIon. ThIS informatIon will be presented
to the publIC In the Shorewood City Newsletter and/or
SaIlor. The publIcatIon will include such informatIon
as the cost and rIsk of all parts of the proposed OMR
proJect <such thIngs as the lntersectlon~ the UpgradIng
of COVIngton. the closIng of the on/off ramps along TH
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7), the 11kely methods of payment <part1cular1ly TIF),
the 1mpl1catlons oi TIF on commun1ty taxes especlally
as they perta1n to school revenue, and other pertlnent
1nformat1on.
6. Hayor Haugen agreed that there was some doubt 1n
her m1nd on whether the res1dents knew about the
proposed OMR intersect1on.
,
We apprec1ate the Council tak1ng time to llsten to our
concerns. We welcome the opportun1ty to work w1th the
C1ty and our ne1ghbors to arr1ve at a comprom1se
solutlon to the OMR-TH 7 intersection.
Slncerely,
~*'~~~~~
Shorewood Resldents for Safe Nelghborhoods
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