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121090 CC Reg Min IE. . . . CITY OF SHOREWOOD REGULAR CITY COUNCIL MEETING MONDAY, DECEMBER 10, 1990 COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 1 M I NUT E S CALL TO ORDER Mayor Haugen called the meeting to order at 7:30 P.M. PLEDGE OF ALLEGIANCE ROLL CALL Present: Mayor Haugen, Councilmembers Gagne, Stover, Brancel and Watten, City Attorney Froberg, City Planner Nielsen, City Finance Director Rolek, City Engineer Norton, City Administrator Whittaker. Absent: REVIEW AGENDA Stover asked that item E. on the Consent Agenda be removed. "Approving Installation of a Street Light on Birch Bluff Road." Stover moved, Gagne seconded, to table the approval of a Street Light for Birch Bluff Road until the second meeting in January. Motion carried - 5/0 Watten moved, Gagne seconded, to approve the agenda with the following additions. City Administrator added item 21-B ; a report on the Hockey Contract. Motion carried - 5/0 Mayor Haugen wanted to be assured by the Council that they would not call the 11:00 P.M. rule. The Council agreed. APPROVAL OF MINUTES A. Regular Council Meeting - November 26, 1990 Gagne moved, Brancel seconded, to approve the Regular City Council Meeting Minutes of November 26, 1990. Motion carried - 5/0 B. City Council Workshop - December 3, 1990 Brancel moved, Gagne seconded, to approve the City Council Workshop Minutes of Dec. 03, 1990 with the follow-ing corrections: City Attorney Froberg made the folloWing corrections on page 6: :1. . . . CITY OF SHOREWOOD REGULAR CITY COUNCIL MEETING MONDAY, DECEMBER 10. 1990 COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 2 1. Par. 3 - "Froberg said if the money expended on this project will eventually be part of the cost of the project; it will not be necessary to pursue Sherman-Boosalis for the costs. II 2. 2nd Par from bottom - liThe City has not lost a law suit in the five years he has been City Attorney.'1 The last sentence of this paragraph should read: "A Resident is appealing a tax assessment. II STATE OF THE CITY REPORT Mayor Haugen presented her State of the City report and hoped that future Mayors will do the same. (COpy attached to and hereby made a part of these minutes) PRESENTATION BY THE EXCELSIOR SLOW PITCH LEAGUE Todd Strott of the Excelsior Slow Pitch League presented the City a check for $1000 to start a fund to obtain playground equipment for Freeman Park. Strott said the Slow Pitch Tournaments are held to raise money for the parks the League plays at. In previous years, the money has gone to Excelsior Parks. This past year they played at Freeman Park and will continue to do so. He said the fields are a real asset to Shorewood and they have had positive comments from many of the other cities that play in their league. He thanked Sue Niccum for her assistance and Don Zdrazil and Danny Randall for preparation of the fields. Councilmember Gagne asked how many people participated in the tournament? Strott said about 400 people. Haugen thanked Strott for the check and told him the City IS trying to do the parts the right way. CONSENT AGENDA RESOLUTION NO. RESOLUTION NO. 132-90 133-90 Brancel moved, Stover seconded. to approve the following Consent Agenda. A. Approving Transfer of Funds from the Liquor Fund to General Fund. B. Setting Date for 1991 Board of Review. C. RESOLUTION NO. 132-90 "A Resolution Adopting the Amendments to the 1990 Budget." D. Confirming the Appointment of Kirk Rosenberger to the Planning Commission. F. RESOLUTION NO. 133-90 "A Resolution of Recognition of 1. O. Kragness. ::~ . . . CITY OF SHOREWOOD REGULAR CITY COUNCIL MEETING MONDAY. DECEMBER 10. 1990 COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 3 Haugen read the Resolution of appreciation to I. O. Kragness on his 100th birthday. The letter commended him for his 68 years of service to the community. Finance Director Rolek said that $5000.00 for Badger shelter flooring should be added to the list of amendments to the 1990 Budget. Motion carried - 5/0. COMMISSION REPORTS: A. Planning Commission Councilmember Stover said two Planning Commission items are on the Agenda and will be discussed as they come up. B. Park Commission Park Commissioner Lindstrom represented the Park Commission. Park Planner Koegler recommended that the City advise Chanhassen that if the land adjacent to Cathcart Park comes up for develop- ment, they should take land instead of cash, to add to Cathcart. He advised the Council that the Minnewashta Church property is UP for sale. The Park Commission would like the Council to look into the purchase of this property. The Excelsior American Legion Post * 259 donated $5000.00 to rebuild Cathcart Hockey Rink. Lindstrom said the Park Commission recommends acknowledging this donation with a plaque on the rink. Over the years this Legion Post has made many donations to the Shorewood parks. This would be a start toward acknowledging their support. Brancel moved. Watten seconded. to place a plaque on the Cathcart Hockey Rink acknowledging the Excelsior American Legion Post *259. Motion carried - 5/0. Councilmember Watten said the plaque should be more permanent, SInce the hockey rink is only a temporary structure. The other Councilmembers felt it should be attached to the hockey rink. PETITION FOR ASSESSMENT OF WATER CONNECTION CHARGES APPLICANT: LOCATION: Doug and Dawn Sweeney 21690 Bracketts Road Administrator Whittaker said the City is obligated to pay the developer $2000.00 when this property is connected to the water system as he installed and paid for it. .~ . . . CITY OF SHOREWOOD REGULAR CITY COUNCIL MEETING MONDAY. DECEMBER 10. 1990 COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 4 Doug Sweeney presented his petition. He said his expenses have tripled because the developer did not inform him that the utilities were not connected and the soils were very poor. Resident from the audience also said the developer did not inform the Sweeneys about the utilities. Rolek said one water connection was certified for collection with property taxes. Haugen said she is not in favor of this because the City will also have to expend $2000.00. Stover said the City usually does not add water connections charges to property taxes except in destitute cases. Usually residents finance there own connections. Stover asked City Attorney Froberg the City's legal responsibility in this matter. Froberg said the matter is between the homeowner and the developer. However, the City can provide a credit to the homeowner to bring the water to the property line. This is a dollar for dollar credit up to $2000.00. Gagne asked Engineer Norton if the utilities have been brought up to the property line. Norton said the sewer was installed long ago. He thinks the water may not be up to every lot. It was only run to lots with houses. Norton thought the credit was to developers who ran their own watermains. Whittaker said the credit is to run the water from the main to the property line. Stover asked the procedure for applying for the credit. Froberg said the Sweeney's need to prepare an application and gIve evidence of expenses. Gagne moved. Stover seconded. to deny the request of Doug and Dawn Sweeney that the City certify their water connection charges to the County for collection with property taxes. Motion carried - 4/1 (Watten) Sweeney thanked the Council for their consideration. RESOLUTION GRANTING A C.U.P. FOR BARTHEL CONSTRUCTION RESOLUTION NO. 134-90 Gagne moved. Brancel seconded. to adopt RESOLUTION NO. 134-90. "A Resolution Granting a Conditional Use Permit for Filling and Grading to Barthel Construction," Motion carried - 5/0 Mr. George Fox requested a delay in his hearing until 8:30 P.M. ACCEPTANCE OF STREET AND UTILITIES LAWTONKA PLAT RESOLUTION 135-90 Norton recommended acceptance of the street and utilities subject to copies of all the developer's lien waivers. The developer will also provide a warranty for the street and utilities for one year from the 1.1. . . . CITY OF SHOREWOOD REGULAR CITY COUNCIL MEETING MONDAY, DECEMBER 10, 1990 COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 5 date of acceptance. This warranty period must be covered by the letter of credit or replaced by a maintenance bond. JOE BOYER - DEVELOPER Boyer said he has some bills to pay. He asked Norton the amount of the maintenance bond. Norton said $66.000.00 for everything installed. Boyer said that was quite a load to carry for a road that is already built. Haugen explained that some roads have been built that have not held up for even one year. The City now requires a one year warranty. Boyer said his firm has done a TV scan of the sewer. Norton said he would have to do it again just before the warranty ends. Boyer asked the Council if a certified check would be acceptable. Froberg said yes. Gagne moved, Brancel seconded, to adopt RESOLUTION 135-90 "A Resolution Accepting the Street and Utilities in the Lawtonka Plat" Motion carried - 5/0 REQUEST FOR SETBACK VARIANCE APPLICANT: LOCATION: GEORGE FOX 4905 SUSSEX PLACE Mr. Fox addressed the Council. He said he has been a resident of Amesbury and Shorewood for 12 years. He explained that he did not obtain a building permit for his gazebo because he thought he only needed the permission of the Amesbury architectural committee. He said the Planner is requiring a 12 ft. setback for his gazebo. He said his deck already extends 6 ft. off the house and it is part of the original structure. He also disagrees with the hardship restrictions. He would like the gazebo to remain because it would have to be demolished to remove it. RICHARD NORDBY - 4950 SUSSEX PLACE Nordby said the City has two main objections to the gazebo. 1. The Amesbury covenants don't cover gazebos. so the architectural committee had no authority. 2. The setback provisions for single homes also apply to the P.U.D. The Amesbury covenants lists features allowed to encroach into the common area. Nordby said the City wants to limit appurtenances to those features listed. Nordby said the statement "other appurtenances" in the Amesbury should include gazebos. In the past the architectural committee has allowed irrigation systems and bay windows which are not defined in the covenants. He said the covenants afford good control. Nordby stated that amending the covenants would require a lot of work. ~5 . . . CITY OF SHOREWOOD REGULAR CITY COUNCIL MEETING MONDAY, DECEMBER 10, 1990 COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 6 If the City does not object to the gazebo's style, they should pass a setback Ordinance applying to all P.U.D.s. Stover said all the members of the Planning Commission spoke in favor of the gazebo. However. they recommended denial of the variance until the Amesbury covenants are amended. Stover explained why she was in favor of granting the setback. She said the unit is an end structure and the topography of the lot drops off. She thinks Mr. Fox is making reasonable use of the lot. The structure is not unsightly and does not change the character of the original building. As long as the gazebo does not encroach into the perimeter setbacks. she said the City should grant the variance. Gagne asked what the Council has done with other gazebos. Councilmember Brancel said the City does not approve them without a building permit. Haugen said the buildable space in Amesbury is the edge of the lot. Councilmember Watten said the reason for setbacks is to prevent encroachment on other property, not common ground. Stover moved, Gagne seconded, to direct the City Attorney to prepare Findings of Fact approving the setback variance for a gazebo for George Fox, 4905 Sussex Place. Motion carried - 5/0 9:00 P.M. PUBLIC HEARING - CHURCH ROAD IMPROVEMENTS A. Presentation of Feasibility Study - City Engineer The Public Hearing was called to order at 9:06 P.M. Engineer Norton presented a chronology of the petition for street and watermain improvements on Church Road. His report states that in order to meet the City requirements for 50 ft. of right-of-way, it will be necessary to obtain 12.75 ft. easements ~n each side of the existing road. Soil borings have been taken and the sub grade is very unstable and will require the removal of at least 2 ft. of material below the gravel base. The elevations are extremely flat throughout the project. The plan proposes to grade the street to drain to the north end adjacent to the old railroad right-of-way. A shallow ditch will then be constructed within this right-of-way to an existing culvert approximately 300 ft. to the west. There may be standing water in this waterway. A cul-de-sac is proposed at the north end of the project. The construction of Maple Ave. from Church Road to Strawberry Lane was evaluated as an alternative to the cul-de-sac. The costs to construct the street proved this alternate not to be cost effective as few additional properties would benefit. The total cost of the project will be approximately $177,200.00 6 . . . CITY OF SHOREWOOD REGULAR CITY COUNCIL MEETING MONDAY. DECEMBER 10. 1990 COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 7 There are 14 assessable units for street and 13 for watermain. The unit cost for the street would be $10,800.00, with water it would be $12,800.00. Haugen asked the costs for extending Maple Ave. Norton said the costs are significantly higher and there are not enough benefitted properties to make the project feasible. She also asked why the cost was not divided equally. Norton said this is a 429 project and must be assessed on benefit. Froberg explained that there are two major statutes that govern assessments. Statute 429 is the traditional type of special assessment based on benefit, using a formula for calculation. Statute 444 is a type of assessment for water drainage systems. It involves the establishment of a Storm Sewer Improvement District and assessments are based on an ad valorem tax but is restricted to drainage problems. Watten asked where the watertable has been established. Norton said the Consulting Soil Engineers felt they did not find the true watertable. BREAK 9:30 - 9:40 Norton said the project will still be a surface water drainage project. The water table is high in that area. B. PUBLIC COMMENT Neil Vegsund - 6155 Church Rd. Mr. Vegsund asked if the culvert will be upgraded. Norton said it can handle the flow with a holding pond. Vegsund asked if the adjacent properties will be able to handle the flow. Norton said the swale will be in the same place, but enhanced. Vegsund said the proposed project is a drastic change from the original idea. He also asked if the contingency funds could be high. Norton said the contingency fees could be less, if there are opportunities for savings. Vegsund said, without Maple Lane added to the project, quite a burden is placed on the Church Road residents. Norton said there are not enough lots on Maple Lane to make the project feasible. Nielsen added, that it would be better to move Maple Lane South, to maximize the land use, rather than improve it where it is. Whittaker said, if all residents gave the right-of-way to the City, costs of $39,000 would be reduced. However, if they pay one resident for right-of-way they will have to pay for all of them. 7 . . . CITY OF SHOREWOOD REGULAR CITY COUNCIL MEETING MONDAY, DECEMBER 10, 1990 COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 8 LANCE DETRUDE - 26620 W. 62ND ST. Mr. Detrude owns lots property. He said he not need City water. Haugen said his lot 5 project. 2,3,4,5. He said he might want to subdivide his receives no benefit from this project and does Will this be taken into consideration? abuts the street, therefore, they are in the BARB MORFORD - OWNS LOTS 9,10 AND PART OF 11 Morford said water already ponds in her yard and she says there will be more when this project is completed. Norton agreed that her back yard will still hold water. Stover asked Norton if this project would solve the problem and also asked what would happen if a drainage system was installed later? Would these people be assessed for that project. Norton said yes. Haugen asked if the pipe can be changed. Norton said they have to work with the 12" pipe that flows under the abandoned railroad tracks, because there is no new outlet downstream. Stover asked if the ponding will be worse. Norton said it will be at least the same. Vegsund said there was a referral to a previous storm sewer project. At what point does the City put in storm sewers? Gagne said the Council has not made a decision to build storm sewers. Haugen said future Councils may decide to do it. Previous residents have not wanted to pay for a City storm sewer. Vegsund said he wants to solve the problem but doesn't think this project will do it. Detrude asked if the residents will get a chance to vote. Brancel asked for the consensus of the residents. DALE JOHANSON - OWNER OF LOT 38 Johanson said he has had offers for his lot and wants a decision on the project. BARB COBB - OWNER OF LOT 6 She was convinced she wanted this project. However, not she is not convinced it will solve the problem and she can not afford it. TERRY HOLMGREN - OWNER OF LOT 12 Holmgren said the water runoff will be a problem. It already goes around his lot and he doesn't want to see more water. Norton said there is no place for the water to go unless there are changes made downstream. Haugen asked three times for further discussion. The Public Hearing was closed at 10:35 P.M. Watten said there is a lot of water in the area of Church Road and a storm sewer should be installed. B . . . CITY OF SHOREWOOD REGULAR CITY COUNCIL MEETING MONDAY, DECEMBER 10, 1990 COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 9 Whittaker said this project uniquely benefits these people and they should tell the Council if they want the project. Vegsund said he wants to do the project and he will hold a neighborhood meeting to ask the other residents' opinions. Haugen moved. Watten seconded. to table the Street and Watermain Improvements for Church Road until after Jan. 1, 1991. Motion carried - 4/0. WATERFORD. PHASE III RESOLUTION NO. 136-90 RESOLUTION NO. 137-90 A. Review Proposed TIF Agreement Whittaker told the Council the amended contract for TIF development is more favorable for the City. Trivesco will purchase $1,150.000.00 in Tax Increment Revenue Bonds at 10%. The net surplus from the tax increments should exceed the surplus from the previous agreement. Froberg informed the Council that they had two contracts to review. 1. A proposed Contract for TIF development between Sherman Boosalis and the City. 2. A proposed bond purchase agreement between Trivesco and the City. He said the TIF agreement has been modified to provide for revenue bonds. The following changes have been made to the contract: 1. Pg. 3 - "Termination Date" - there is no assessment agreement; so the effective termination date is Dec. 31. 1999. Pg. 6 Section 3.2 - "The Developer shall complete construction of the project in accordance with the schedule set forth in the Developer's Agreement in Exhibit 3 attached hereto." Pg. a - Section 4.1 "Real Property Taxes" - delete "and pursuant to the provisions of the Assessment Agreement" and change to "May 1, 1990" Pg. a.Par. (d) - the last line should read: "the Development Property provided such reduction does not fall below an Assessor's Market Value sufficient to pay scheduled debt service on the bonds." Pg. 12 - Section 6.9 "Assignment" - Add the following sentence at the beginning of the paragraph: "Except for an assignment by the developer to Trivesco. a General Partnership, of the developer's rights and obligations hereunder, which assignment is hereby approved by the City" 2. 3. 4. The following changes were made to the Bond Purchase Agreement: <'71 CITY OF SHOREWOOD REGULAR CITY COUNCIL MEETING MONDAY, DECEMBER 10, 1990 . COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 10 1. Pg. 1 - Bottom of page - "Any available funds remaining after payment of semiannual principal, interest and administrative expenses shall be used to prepay outstanding principal, provided that such prepayment shall be an amount equal to the bond denominations." Pg. 2 - Top of page - "Public Improvements" described in Subsection 2.09 of the Tax Increment Financing Plan for TIF District 1 adopted by the City on April 23, 1990 (the "TIF Plan"). Pg. 3, Par e - the last sentence should read: "and said plat shall have been recorded by the developer," Pg, 4 - Add the following to the last sentence on the page: "This disclosure statement shall apply to all original or future purchases of said bonds." Pg. 5, Par. 10 - The last two sentences of this paragraph should read: "If the Bonds are not issued, this $99,000.00 payment plus interest thereon at the rate of 10% per annum. will be repaid to Trivesco by the City from the first available tax increments generated by TIF District 1. Reimbursement to Trivesco of this $99,000.00 shall be limited to reimbursement from the aforementioned sources or from any sums recovered from the City by Sherman-Boosalis. 2. 3. 4. 5. . Haugen asked what the $99,000.00 payment covered. Whittaker's memo stated that it included the current $53,000.00 and any further expenses incurred by the City before the contracts are let and the bonds sold. RON LANGNESS - SPRINGSTEAD INC. Haugen asked Langness about the 10% interest rate. Langness said 10% for a tax exempt would be high; but these bonds are the equivalent of a junk bond. There is no security. He doesn't feel he could market them. The bonds are not backed by the full faith and credit of the City. There is no capitalized interest and no debt service reserve. Many things could make this bond fail. Langness said the City has protection because it is willing to pay a higher interest rate and has a high degree of interest in the project from the developer. The City will require a disclosure statement or "inducement" letter from the developer. He is concerned about the language of the Contract concerning future purchasers of the bonds. He said the City should restrict the marketability of the bonds to protect the City. Gagne asked Langness his background and qualifications. Langness said he has been in the investment business since 1964. Gagne also asked what he would do if the City asked his firm to issue these bonds, as they have in the past. Langness said the City could issue General Obligation bonds. The capitalized interest would be added to the bond; with an interest rate of approximately 6 1/2%. . Gagne asked which of the two bonds proposals would he recommend? "I () . . . CITY OF SHOREWOOD REGULAR CITY COUNCIL MEETING MONDAY, DECEMBER 10, 1990 COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 11 Langness said he prefers the revenue bond. With the current proposal, Langness said there IS no risk to the City and the taxpayers are not at risk. BOB SNYDER - RESIDENT He asked what the additional interest expense would be and what alternatives are possible. Langness said he didn't think he could market revenue bonds for a single project. Many industrial revenue bonds are failing. If a revenue bond was sold to the public; in the event of a default it may open up the City to a liability due to a possible moral obligation. Langness said this proposal with a knowledgable investor or a pay as you gO is the best proposal for the City. BOB SNYDER - Did Springstead review the TIF Agreement and will they give an opinion? Langness said Springstead has already given an opinion on the TIF agreement. Waterford III is the only area in the TIF District. BOB DOUGHERTY - COUNCILMEMBER ELECT Dougherty asked the after-tax rate of return on this bond. Langness said the after-tax rate would be 14% assuming the bond could be sold to the public, which it cannot. JAY HARE - RESIDENT Hare asked Langness about the City's risk in this project. Langness said the developer has most of the risk. The developer is the sole bond holder. If the revenue from the development is not sufficient to pay the bonds; they are in default. The TIF district is only in use until 1999. Hare asked if there IS a cap on the accrued interest for this project. Langness said there is a timetable in the agreement for the developer to follow and it costs him money to delay the project. BREAK 11:35 TO 11:40 JERRY STEINER - ATTORNEY FOR TRIVESCO Steiner said the proposed revenue bond will generate a $700,000.00 surplus vs the $500,000.00 with the General Obligation Bond. He said the 10% rate sounds high but there is less risk for the City. He said it shows excessive caution to limit the future sale of the bonds. A letter of disclosure should be sufficient. It would not be acceptable to Trivesco to obtain the permission of the City before selling the bonds. Although they would agree to terms requiring notification of the risks to any potential bond buyer. Dougherty asked why the City should pay interest if the development does not go in on schedule? Should the interest rate be less? "I "I CITY OF SHOREWOOD REGULAR CITY COUNCIL MEETING MONDAY. DECEMBER 10. 1990 COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 12 . Froberg said there would be a surplus if the project is completed on time, if it is slowed, there could be little or no surplus, with insufficient increments to pay the bonds. DAN LEWIS - COUNCILMEMBER ELECT Lewis said the intersection is not something the City needs. Haugen said it is needed to handle the traffic from the Waterford development. Lewis said it has gone beyond an intersection to include a strip mall no one wants. Steiner said Trivesco needs a final plat approval, P.U.D. development agreement. He said Trivesco would like another Council meeting before the end of the year. He talked to the Staff and they said they could complete these items in approximately 10 days, if they received $53,000.00. Hare and Lewis asked why there is such a rush. Haugen said a Dec. 31st deadline for the project was set. The Council set a Special meeting for 5:00 P.M. on Wed. Dec. 19, 1990 for the purpose of reviewing the final plat and P.U.D. Development Agreement for Waterford III. . GEORGE SHERMAN OF SHERMAN-BOOSALIS Sherman said the construction date will start on May 1, 1991 not Feb. 1. Gagne moved. Stover seconded. to adopt RESOLUTION NO 136-90 I'A Resolution approving the sale of $1.150.000.00 of TIF bonds to Trivesco. subject to the terms of the agreement. II Motion carried - 5/0 on a roll call vote. Gagne moved. Stover seconded. to instruct the staff to start work on the P.U.D. development agreement. subject to receiving $53.000 from Trivesco. Motion carried - 5/0. Gagne moved. Stover seconded. to adopt RESOLUTION NO. 137-90 IIA Resolution Authorizing the Mayor and Administrator to Execute the Revised Contract for Tax Increment Finance Development by and between the City of Shorewood. Minnesota and Sherman-Boosalis Interests. Inc.1I . Motion carried - 5/0 on a roll call vote. 'I ') . 4It . CITY OF SHOREWOOD REGULAR CITY COUNCIL MEETING MONDAY. DECEMBER 10. 1990 COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 13 REVIEW CONTRACT WITH ASSOCIATED CONSULTANTS FOR WATER TREATMENT PLANT - PLANS AND SPECIFICATIONS Haugen told Noel Vogen of Associated Consultants, the City has not decided how to fund the Water Treatment Plant and will have to table the discussion. Haugen moved. Gagne seconded. to table the review of the contract until after Jan 1. 1991. Motion carried - 5/0 Noel Vogen - Associated Consultants Vogen asked the Administrator if his references had been checked. The Council said they had been very satisfactory. He said Assoc. Consultants had increased their Errors and Omissions insurance to $500,000 and will be able to obtain $1 Mil. He also provided the City with a list of hourly payroll costs. EXTEND CONTRACT WITH MUNITECH THROUGH MARCH . 1991 Whittaker informed the Council that he has not received a proposal from Excelsior for maintenance of water and sewer systems. He asked Munitech to extend there contract until March 31, 1991. Munitech has indicated they will not extend for such a short period of time. Watten moved. Gagne seconded. to extend the Munitech contract for one year. Motion carried - 5/0. REVIEW CONTRACT FOR SEWER RENTAL. CITY OF EXCELSIOR Froberg said the contract should have a commencement date and a cancellation provision. Gagne asked if the City receives no credit from the MWCC, then the City will be paying twice. Whittaker said they will. REVIEW JOINT CONTRACT FOR 1991 RECYCLING Whittaker said there is no final contract Froberg said insurance is also needed. Stover moved, Gagne seconded, to table the contract until the Dec. 19, 1990 meeting, Motion carried - 5/0. "I :"<; . . . CITY OF SHOREWOOD REGULAR CITY COUNCIL MEETING MONDAY. DECEMBER 10. 1990 COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 14 REVIEW PROPOSED AMENDMENT TO ANIMAL CONTROL CONTRACT - CITY OF CHANHASSEN The Council reviewed the Amended Animal Control Contract submitted by Chanhassen. Froberg said the Council might also want to consider reviewing the fee schedule for animal redemptions. Gagne moved. Brancel seconded. to approve the amended animal control contract with the City of Chanhassen. Motion carried - 5/0 CONSIDER RESOLUTION APPROVING MN/DOT ALTERNATIVE NO. 4 FOR T.H. 7 AND CHRISTMAS LAKE ROAD INTERSECTION IMPROVEMENTS Brancel passed the Council the letters she has received regarding the T.H. 7/Christmas Lake Road improvements. Most of the letters did not want the road lined up with Christmas Lake Road. Stover wants the City to pick a plan they like and recommend it and let Greenwood decide separately. Watten moved. Brancel to table the decision until after Jan 1. 1990, Motion carried - 5/0, CONSIDER 1991 PAY PLAN AND COMPENSATION ADJUSTMENTS RESOLUTION NO. 138-90 Whittaker said the pay ranges for the staff were increased 4.1%. The Council has already adopted all the policies regarding the ranges. The figures he is presenting are less than they were in August and the dollar amounts are less except for his. Brancel said the amounts are not less. Whittaker said he had recommended mid-year raIses in July, but they were not approved for the staff. Gagne said most people in private industry do not receive cost of living increases and these increcrses are not seen in private business. Whittaker said some of the staff were hired at lower rates and promised increases. He said the City is not in recession and the City is paying less money than they did two years ago for the same positions. Stover said this pay plan was approved in July and should be In effect now. Haugen said she does not feel the individuals are worth less but she thinks the funds might not be available. Whittaker said the Council is paying for a service. The individuals have met certain conditions established for them. He said they are not overpaid. According to the Stanton Survey, the Wall Street Journal reports on wages and private sector reports, their wages are in line. i4 CITY OF SHOREWOOD REGULAR CITY COUNCIL MEETING MONDAY. DECEMBER 10. 1990 COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 15 . Brancel and Watten said the wages are high. Haugen said that the Administrator and Department Heads are like a CEO and Vice-Presidents. Shorewood has always had an entry level Administrator and now it has one with 11 years experience. Whittaker has done a fine job and the staff is working at a higher level. Stover also said the total increase in salaries is only at little over $21,000.00. Whittaker said the City has a half million dollar investment and asked what they would do to motivate and keep the employees. Stover moved. Haugen seconded. to adopt RESOLUTION NO. 138-90 "A Resolution Approving the pay plan and employee pay adjustments for 1991." Motion carried - 3/2 (Aye: Watten. Stover. Haugen - Nay: Brancel and Gagne) MA TIERS FROM THE FLOOR . Bob Rascop. LMCD Representative said 8 Lake Area cities are now opposing the LMCD Comprehensive Plane. There will be a Mayor's meeting on Dec. 12th. Mayor Elect Brancel and Planner Nielsen will attend. The DNR has sent a letter to the Lake Area cities. He also informed the Council that the Metro News carried an article discussing a fee per household for water runoff. Bloomington has established this fee and now has a 1.5 million surplus. Mayor Haugen called three times for matters from the floor. There were none. STAFF REPORTS: ADMINISTRATOR METRO RELATIONS AGREEMENT The City has entered into an agreement with Metro Relations to monitor the activities of the Metropolitan Waste Control Commission. HOCKEY RINK CONTRACT Gagne moved. Watten seconded to approve the 1991 Contract with the Hockey Association. . Motion carried - 5/0 COUNCIL REPORTS. 1 ~5 , . . CITY OF SHOREWOOD REGULAR CITY COUNCIL MEETING MONDAY. DECEMBER 10. 1990 COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 16 COUNCILMEMBERS GAGNE: Gagne reported that the Senior Housing Task Force will meet Wednesday, De c. 12 , 1990. ADJOURNMENT SUBJECT TO THE PAYMENT OF CLAIMS Gagne moved. Watten seconded, to adjourn the meeting at 1:20 A.M. GENERAL AND LIQUOR FUNDS - ACCOUNT NUMBER 00-00166-02 Checks issued since November 20, 1990 LIQUOR $38,090.12 GENERAL $ 32,822.67 TOTAL CHECKS ISSUED $ 70,912.79 Checks for Council approval Checks No. 5778-5829 TOTAL CHECKS FOR APPROVAL $184,482.27 TOTAL CHECK APPROVAL LIST $255,395.06 PAYROLL REGISTER FOR DECEMBER 4, 1990 PAYROLL Checks no. 204680/204723 LIQUOR GENERAL $3,063.21 $12,601.44 TOTAL CHECKS ISSUED $15,664.65 "I i, . . . CITY OF SHOREWOOD REGULAR CITY COUNCIL MEETING MONDAY. DECEMBER 10. 1990 RESPECTFULLY SUBMITTED Katie Snyder Recording Secretary ADMINISTRATOR/CLERK LAURENCE E. WHITTAKER 17' COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 17