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082393 CC Reg Min . . . . . " CITY OF SHOREWOOD REGULAR CITY COUNCIL MEETING MONDAY, AUGUST 23, 1993 COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD 7:00 P.M. MINUTES 1. CONVENE CITY COUNCIL MEETING The meeting was called to order by Mayor Brancel at 7:00 p.m. A. Pledge of Allegiance B. Roll Call Present: Mayor Brancel; Councilmembers Benson, Daugherty, Lewis and Stover; Administrator Hurm, Engineer Dresel, Attorney Keane, Planning Director Nielsen and Financial Director Rolek. C. Review Agenda Daugherty moved, Lewis seconded to approve the Agenda for August 23, 1993, with the addition of Consent Agenda Item 3.J. "Motion to Approve a House Moving Permit-Boyer Construction, Timber Lane," the re-scheduling of "Report of MWCC Meeting of August 17th" to Agenda Item 7.A. from Agenda Item 13. Motion passed 5/0. 2. APPROVAL OF MINUTES Daugherty moved, Lewis seconded to approve the City Council Meeting Minutes of August 9, 1993. Motion passed 5/0. 3. CONSENT AGENDA Mayor Brancel read the Consent Agenda for August 23, 1993. Daugherty moved, Stover seconded to approve the Consent Agenda and to adopt the Resolutions and Motions contained therein: A. Motion to Approve a Sign Permit - I.C.O. - Applicant: Lawrence Sign Company. Location: 5680 County Road 19. B. RESOLUTION NO. 93-68 "A Resolution Approving the Final Plat of James Hill." 1 . . . REGULAR CITY COUNCIL MINUTES AUGUST 23,1993 - PAGE 2 C. Motion to Approve a Sign Permit - Boulder Ridge Estates - Applicant: Tony Eiden Company. Location: West End of Noble Road. D. Motion to Approve a 3-Year Water & Sewer System Maintenance Contract by and between Munitech, Inc. & The City of Shorewood. E. RESOLUTION NO. 93-69 "A Resolution Concurring to Costs in Excess of .00242 Percent of Total Taxable Market Within Lake Minnetonka Conservation District." F. RESOLUTION NO. 93-70 "A Resolution Accepting the Street and Watermain Improvements to Church Road-City Project 91-2" and a Motion Approving the Final Construction Pay Voucher, Street and Watermain Improvements- Church Road, City of Shorewood 91-2. G. Motion Approving Fall Yardwaste Collection Date - October 23, 1993. H. RESOLUTION NO. 93-71 "A Resolution Setting a Public Hearing on Proposed Assessment of Delinquent Sewer and Water Utility Charges, City Clean-up Charges and Property Clean-Up Charges." I. Motion to Approve Contract for Fire Services with the City of Excelsior, Contingent upon each Signatory City's Approval of the Contract, and to Encourage the City of Deephaven to Approve the Contract. J. Motion to Approve a House Moving Permit for Boyer Construction, Timber Lane. Motion passed 5/0. 4. VISITOR'S PRESENTATION Mr. Don Follett, representing Minnegasco, read a brief statement and presented to the City a plaque and a $250 gift for the purchase of a mature tree to be planted in a public place to commemorate the company's 40 years of service to Shorewood. Mayor Brancel accepted on behalf of the City. 5. PARK COMMISSION A. Report on the August 10th meeting Steve Dzurak, Chair of the Park Commission, reported on the following agenda items discussed at the August 10 meeting. 2 . . . REGULAR CITY COUNCIL MINUTES AUGUST 23,1993 - PAGE 3 B. Report on Silverwood Park Tennis Courts Dzurak reported that due to poor soil conditions at Silverwood Park installation of the tennis courts has been deferred until this issue can be resolved. Possible options include elimination of courts at the park or application of acceptable soil to the proposed court location. C. Report on Playground Equipment Playground equipment will be installed at Freeman Park primarily by Tree Trust and neighborhood volunteers on September 18-19. Dzurak explained that in terms of children's safety, the use of washed buckshot gravel, while more expensive, is moderately safer than washed sand. He noted the use of gravel would create a budget over-run. The difference in cost of gravel vs. sand is approximately $600 at Freeman Park and $500 at Manor Park. Daugherty stated there is also a difference in performance between the two and explained that gravel is superior to sand under playground equipment in that gravel is more porous and dries faster. Hurm noted the Park Planner indicated there is little difference between the two in terms of safety. Daugherty moved, Stover seconded to direct the staff and Park Commission to install washed buckshot gravel under playground equipment at Freeman and Manor Parks. Motion passed 5/0. D. Resignation of Commissioner Mark Laberee Dzurak reported on the resignation of Commissioner Laberee after 5 years of service on the Park Commission effective immediately. 6. PLANNING COMMISSION A. Consideration of a Setback Variance - Direct Staff to Prepare Findings of Fact. Applicant: Kevin & Gail Towey. Location: 19495 Vine Ridge Road Nielsen reported the Planning Commission recommended on a 5/1 vote to amend the P.D.D. agreement for Covington Vine Ridge development by reducing the rear yard setback to 30' rather than grant the applicants' variance request. The amendment will result in modification of the applicants' plans by 2'. Daugherty moved, Stover seconded to approve the amendment of the P.U.D. covenants of the Covington Vine Ridge development to reduce the rear yard setback from 35' to 30'. Motion passed 5/0. 3 . . . REGULAR CITY COUNCIL MINUTES AUGUST 23, 1993 - PAGE 4 Stover moved, Lewis seconded to deny the request of Kevin & Gail Towey for a rear yard setback variance at 19495 Vine Ridge Road. Motion passed 5/0. B. Consideration of a Setback Variance - Direct Staff to Prepare Findings of Fact. Applicant: Kerry Peterson. Location: 28110 Woodside Road. Stover moved, Lewis seconded to direct the staff to prepare a Findings of Fact Resolution approving a setback variance requested by Kerry Peterson at 28110 Woodside Road. Motion passed 5/0. C. A Resolution Approving a Simple Subdivision. Applicant: Charles Crepeau. Location: 23443/23445 Smith town Road. Nielsen stated the staff report recommends acquisition of side and rear easements on the property. However, the City Engineer clarified that an easement between the two lots is unnecessary since an easement exists to the east of the Garden Patch property. The Planning Commission unanimously recommended approval of the subdivision. Lewis moved, Stover seconded to adopt RESOLUTION NO. 93-72, "A Resolution Approving Subdivision of Real Property." Motion passed 5/0. 7. CONSIDERATION OF A PETITION FOR A TRAIL ALONG VINE HILL ROAD Ms. Sandra Trettel, 19280 McKinley Court, presented a Bike/Pedestrian Path Petition signed by approximately 170 residents from the immediate neighborhood. She explained their request for installation of a 1/3 mile bike/pedestrian path along the west side of Vine Hill Road from Castle Ridge on the south to Manchester Street on the north to provide neighborhood access to the Chanhassen trail system and direct access to the Minnetonka trail system. The majority of families in the Near Mountain subdivision have young children (50 children under age 12). The primary reason for the petition is concern for the safety of bikers and pedestrians traveling on Vine Hill Road which is narrow, dangerous and carries a significant amount of traffic. Some of the streets in the neighborhood are not through streets, therefore, travel between homes and to parks requires the use of Vine Hill Road. Ms. Trettel emphasized the neighborhood's concern for safety of its residents, noting that 2 children have been struck during the past 3 years. The cost of installation of a trail is estimated to be between $10,000 and $20,000. Daugherty expressed concern regarding the speed of traffic on Vine Hill Road. He pointed out constraints in the park budget and suggested that a park within that large residential 4 . . . REGULAR CITY COUNCIL MINUTES AUGUST 23,1993 - PAGE 5 development be considered. He inquired whether the residents would consider partially funding the trail construction. Ms. Trettel stated the residents would not consider that acceptable as they are paying a high rate of taxes and pointed out that the safety of residents should prevail over additional parks and equipment. She acknowledged that other areas of Shorewood may be faced with similar safety problems. Hurm suggested the Council may wish to add this segment to the trail system and determine Chanhassen's plans for extension of its trail. He reported the City did not receive funding through the grant program, but suggested that a trail could be installed using Public Works and Tree Trust staff at a much lesser cost. Cost information could be developed and presented for the Council's consideration. Lewis suggested using less expensive materials and requested that cost information of options be developed. Daugherty inquired why the City did not receive the grant funding for which it applied. Hurm stated a large number of cities make requests and Shorewood did not meet the criteria. Stover stated there appears to be a high demand for trails in the City. Lewis noted the defeat of the park referendum appears to confirm that residents do not support funding for additional parks and suggested that the Park Commission may wish to consider a trail referendum in the future. Stover suggested the Park Planner's recommendations also be taken into consideration. Daugherty recommended focusing the addition of trail system in high traffic areas of the City. The Council agreed to reexamine this matter at a future meeting. A. Report of MWCC Meeting of August 17 Keane reported on the August 17 meeting of the MWCC attended by Hurm, Dresel, Benson and Keane. The meeting agenda included MWCC's consideration of certifying a levy against Shorewood properties for the difference between the payment the City has remitted on a monthly basis since the first of January and the amount it has been invoiced for waste water treatment charges. Shorewood staff presented the City's arguments regarding the matter to the group. The City's position focused on: 1) Accuracy of the metering and the estimates MWCC uses as the basis for annual charges, with particular emphasis on the identification last Spring of the location of excessive 1/1 flows into the Commission's interceptors in the City and the recent apparent contradiction in their analysis of identifying the problem, and 2) The fundamental problem of wet communities subsidizing dry communities with an inordinate burden placed on wet communities and specifically Shorewood. The Commission discussed local issues and the general policy issue of the flow- based system and how it affects the wet communities. Keane stated the Commission took action to recommend to the Metropolitan Council that it certify the levy to the Hennepin County Auditor. The recommendation will be discussed by the Metropolitan Council in September. The City representatives intend to make its presentation to that group as well. Keane noted the Chair of the Commission included in his motion recommending certification that representatives of the City and MWCC make an effort to find a middle ground during the interim period before the Met Council meeting. 5 . . . REGULAR CITY COUNCIL MINUTES AUGUST 23,1993 - PAGE 6 At the recommendation of the Commissioner who represents this area, Shorewood representatives suggested that the credit previously allowed by the Commission be doubled for this year. The Commission directed that 2 representatives from the MWCC and 2 representatives of the City Council work together to forge a resolution before November 15. Keane detected some softening of the harsh position of the MWCC as it applied to Shorewood but the Commission was not prepared to make a commitment. Keane reviewed the MWCC's engineer's explanation of the basis for the previous credit and the metering and testing done on the east side of Shorewood localizing the problem resulting in the remediation measures completed by the MWCC this summer in the Covington Road area. The engineer stated that when that line was isolated and the flow was diverted, it was discovered the line was virtually dry and there was no significant evidence of a problem. Dresel stated the Commission appeared reluctant to recommend the levy, however, it did not wish to single out one community for preferential treatment under its policies. Lewis stated Shorewood is currently being penalized and should receive fair treatment. He inquired whether a change in MWCC's billing formulas could result. Keane stated there did not appear to be a consensus among the Commissioners to readdress the fundamental policies, but there seemed to be a general understanding of the inequitable charges imposed upon wet communities. Brancel stated the MWCC continues to provide estimates, but has not yet produced verifiable calculations of usage for billing purposes, and pointed out the Commission has not, to date, approached the City with any offers for a compromise solution. In addition, she noted the City has been over-charged for the last several years. She questioned the purpose of a task force since the Commission has begun the levy process. Referring to the MWCC engineer's presentation, Daugherty pointed out that over the years the City has contested the validity of various data submitted by the Commission. He indicated the Commission could lose its position on certification of a levy based on the concept of taxation without representation. He questioned the validity of the MWCC's reasons for increases in charges given the ambiguous conclusions it reached regarding the Covington Road line. In the opinion of Keane and Dresel, there did not, however, appear to be a credibility gap between the engineer and the Commissioners. Dresel reviewed the background of the apparent leak in the Covington Road interceptor which led to the suggestion that a 2-year adjustment be made in charges. The MWCC engineer, however, explained that given the fact that a leak was not discovered in that line, the previous credit should not have been allowed and therefore a doubling of the credit cannot be justified. The Commission contends the previous identification of the problem was based on preliminary information. 6 . . . REGULAR CITY COUNCIL MINUTES AUGUST 23, 1993 - PAGE 7 Benson stated the Commission faced a time line under which they could initiate the certification process. He endorsed the concept of using an independent mediator to facilitate a solution. Hurm noted the Commission did not respond to such a suggestion, however, the Council may wish to re-offer that recommendation. Lewis agreed use of a mediator in conjunction with the task force has merit. He pointed out the Chair's letter states that "no statutes will be violated." Hurm stated the MWCC interprets the applicable statute very strictly. Keane stated it has a narrow interpretation of strict reliance on flow, but Keane indicated that in his opinion, the statute is open to other interpretations that would be equally acceptable under the law. Strict interpretation allows the MWCC's application of the same methodology to each community. Stover expressed concern about the absoluteness of the Commission's data used for determining charges, yet it is based on estimated information. Daugherty stated the Council should weigh the benefits of forming a task force against continuing through the legal system. He indicated the task force may achieve some objectives including a credit to the City, however, the legal process may produce a long-term results. Stover stated a task force, absent the MWCC's technical staff, may provide an opportunity for the City to explain and clarify its position to the Commissioners, however, she strongly endorsed continuation of legal action by the City. Stover concurred with the use of a mediator in conjunction with the task force. Brancel stated the formation of a task force is a positive step, however, time limit guidelines should be imposed for development of optional solutions by the task force to avoid further prolonged delays in resolution of the issue. Keane recommended to the Council that it endorse the task force concept and accept the opportunity to go through the process in the interim. He indicated the Council's task force members will have the full support and assistance of the City staff. He also suggested the Council re-affirm its desire for a third-party mediator. Daugherty requested clarification of the financial details that make pursuing this issue important to the City. Keane stated the City received 40% and 42% increases in MWCC charges in 1992 and 1993 respectively. On a per household basis, the City is paying 3 times more than comparable cities pay for sewer treatment charges. Hurm stated that analysis shows that a household in a $93,000 home pays as much for sewer charges as for all other municipal charges combined. He reiterated that a problem exists and apparently the Commission does not recognize and understand this. Keane stated the increases include treatment of clear water 1/1, and indicated that although the City has made every effort to tighten its lines, discharge by sump pumps into the sanitary sewer system must also be further addressed by the City. 7 . . . REGULAR CITY COUNCIL MINUTES AUGUST 23,1993 - PAGE 8 Brancel moved, Daugherty seconded to approve formation of a task force and recommended the use of a mediator to work toward a resolution of the dispute between the City and the MWCC over sewer treatment charges to the City. Motion passed 5/0. Lewis moved, Benson seconded to appoint Brancel and Daugherty to the task force to represent the Council. Motion passed 5/0. 8. CONSIDERATION OF AN ORDINANCE REGARDING SUMP PUMPS Rolek stated that given the severity of the City's problems with the MWCC charges, It IS important this ordinance be adopted to clarify prohibited discharges into the sanitary sewer system and provide for violation penalties. Keane explained that the City's current sump pump ordinance administered by the building inspector addresses sump pump connections. The City has represented to the MWCC that a non-hook up ordinance exists, with penalties and inspections, enforced by the building inspector. Keane stated, however, a City-wide standard does not exist to require inspection and compliance. The proposed ordinance requires property owners to contact the City for an inspection of sump pump connections and provides that a $100 monthly surcharge will be imposed for noncompliance beginning in March 1994. Keane stated residents who abide by the nonconnection ordinance heavily subsidize those with illegal connections. The new ordinance is similar to those already in place in surrounding communities. Compliance with the prohibition ordinance by residents in surrounding communities has not presented any problems. Lewis inquired whether contractors advise homeowners that it is illegal to make a sump pump connection. Nielsen stated the role of the contractor is unknown, however the City's final occupancy inspection would detect such a connection. Keane stated that various methods of communication will be used, including direct mail, to inform residents of required action they must take under the provisions of the new ordinance. Rolek noted the ordinance also provides a time frame in which those in non-compliance may correct a violation. Each residence in Shorewood will be inspected. Keane explained the new ordinance will support and confirm the City's position relative to the MWCC issue. Dresel stated it is not anticipated that sump pump discharge into yards or streets will create any significant problems. Brancel read a summary of the provisions of the ordinance. Stover inquired whether guidelines exist in other communities for waivers. Rolek stated a waiver may be granted based on the uniqueness of the property and is justified on a case by case basis. A 8 . . . REGULAR CITY COUNCIL MINUTES AUGUST 23, 1993 - PAGE 9 temporary waiver could become permanent, until a correction is made, if discharge is creating a public safety hazard. Annual inspections will be done by City employees on an appointment basis. Charges for violations will appear on residents' utility bills. Keane noted the City reserves the right to make annual inspections which allows discretion in the inspection schedule. Brancel moved, Benson seconded to adopt ORDINANCE NO. 93-277, An Ordinance Amending Shorewood City Code Section 904.09. Prohibiting Discharges into the Sanitary Sewer System, and Section 1301.02, Schedule A, Providing Penalties for Violation Thereof. Motion passed 5/0. 9. CONSIDERATION OF AN ORDINANCE AMENDMENT TO THE FEE SCHEDULE INCREASING SEWER RATES Brancel explained this amendment to increase sewer rates is associated with the MWCC issue. Rolek stated the MWCC imposed a 40% increase for sewage treatment charges on the City effective January 1994. The recommended 37% increase in residents' rates includes costs the City incurs in operating the system including contracted maintenance and upgrading of the lift stations, administrative costs, and personnel costs associated with upkeep of the lines. Quarterly residential fees would increase to $75, to $50 for residential low income, and to $37.50 for residential seasonal. Rolek pointed out information from the MWCC states mid-year flow was 199 million gallons vs. the estimated 180 million gallons. He stated although the City is currently disputing the charges, the MWCC has indicated it will charge the City as originally proposed and since the flow reported is over the estimate, future charges will be higher than anticipated. Rolek estimated that 10-15% of the 37% increase is related to the City's cost with the remainder related to MWCC costs. The increased rate schedule, if approved, will become effective immediately since the City expects to either pay the delinquent charges accruing since January or incur legal and technical costs for a lengthy court dispute. Brancel stated she cannot support an increase in rates at this time given the current high rates and because calculations by the MWCC to support its increase are not verifiable. Dresel clarified the MWCC's estimate calculation methodology. Lewis supported allowing the levy certification process to continue for collection of the delinquent charges from the residents. He hesitated increasing rates, but acknowledged that sufficient funds must be available to continue the legal process in order to effect a change. Daugherty described the ramifications of various outcomes of the dispute and emphasized the need for the City to remain fiscally responsible. He suggested if rates are raised and resolution of the dispute results in excess funds for the City, rebates could be paid to residents. If rates are not raised now and the City was forced to pay outstanding charges and legal costs, residential rates would then require a significantly greater increase. The meeting recessed at 9:00 p.m. and reconvened at 9:10 p.m. 9 . . . (' REGULAR CITY COUNCIL MINUTES AUGUST 23, 1993 - PAGE 10 Lewis agreed the City must be responsible, however, he disagreed that residents' rates should be increased to build a reserve fund to hold in escrow for the MWCC. Acknowledging the need to cover legal fees and a compromise settlement with MWCC, Lewis agreed some increase in rates may be necessary and suggested that a 20% increase would be less offensive to residents. Daugherty reiterated the need to begin recovering from residents some portion of the unpaid MWCC charge to avoid a future significant increase since the City would not have the funds to pay the shortfall. Lewis reiterated that he preferred the levy process be allowed to recover the outstanding MWCC charges. Stover suggested the fee schedule could be amended at the time a successful compromise is accomplished. Brancel suggested since the MWCC issue is currently in litigation, the Council may wish to discuss its options relative to rate increases at a future executive session. Stover suggested the staff analyze the financial requirements surrounding this issue and the effects of the levy on residents and report to the Council for consideration at a future meeting. Benson moved, Lewis seconded to table, for two weeks, action on the Ordinance Amending Section 1301.02 of the City Code, Sanitary Sewer Service Charges, for discussion in an Executive Session. Motion passed 5/0. 10. CONSIDERATION OF AN ORDINANCE AMENDMENT ESTABLISHING MEMBERSHIP OF THE PARK COMMISSION Hurm noted the membership of the Park Commission was increased last year to provide additional assistance related to the Park Referendum. With the resignation of Commissioner Laberee, the Commission will return to its original membership number. Lewis moved, Daugherty seconded to adopt ORDINANCE NO. 93-278 Amending Chapter 202 of the Shorewood City Code Relating to the Makeup of the Park Commission. Motion passed 5/0. 11. CONSIDERATION OF AN ORDINANCE ADOPTING AN ASSESSMENT POLICY FOR STREET RECONSTRUCTION Dresel reviewed the materials prepared as requested by the Council describing the impact of various assessments rates for street reconstruction and the impact on ad valorem taxes if no assessment was made. Hurm noted the ordinance contains a 33% assessment rate. Daugherty supported the recommendation of the task force for a 33% assessment for street reconstruction. Brancel supported continuation of street reconstruction costs financed through property taxes. She expressed concern about adding additional taxes to the existing high burden of taxes. Daugherty stated if an assessment policy is not enacted, the result will 10 t . . . REGULAR CITY COUNCIL MINUTES AUGUST 23,1993 - PAGE 11 be a higher tax level for all residents. Stover pointed out that heretofore the majority of road work in the City has been repair and this ordinance addresses the financing of reconstruction/replacement of the City's streets. The ordinance provides a public hearing to allow the residents to be heard regarding proposed street reconstruction. Stover reiterated that use of general funds for street replacement will increase the taxes of all residents while the proposed ordinance would only tax the residents of the reconstructed street. Brancel pointed out other considerations that should be addressed, such as: City water lines and trash removal service. Lewis expressed concern regarding the benefit aspect of the ordinance. He agreed it is necessary to develop a plan for reconstruction, however, he questioned whether the value of property would increase if the street abutting the property were reconstructed. Lewis suggested that additional study of the proposal is necessary to determine an alternative assessment percentage and that consideration be given to residents on MSA routes. Daugherty pointed out that the tax impact on residents will be the highest if property taxes continue to be used to finance street reconstruction; Le. an assessment policy would have the least impact on the residents' taxes. He agreed that under an assessment plan, MSA roads could be assessed at a different rate than other local residential streets. Lewis stated if roads are reconstructed for the benefit of Shorewood, then the. citizens of Shorewood should pay for them through general property taxes. Benson stated he does not support the assessment policy and agreed a reconstructed street would not add benefit or value to a property. Lewis agreed that other related issues must be addressed by the City before any reconstruction of streets begins. Stover indicated an assessment policy would give the City a tool to begin the task of reconstruction of its streets. Daugherty stressed the need for the Council to reach a compromise in developing a funding plan and schedule for street replacement. The Council commended the work of the task force in developing the proposed policy. Daugherty moved, Stover seconded to table, to the next work session, consideration of the proposed ordinance adopting an assessment policy for street reconstruction and requested the staff continue to study the possibility of assessing various percentages for reconstruction of Shorewood streets. Motion passed 3/2. Brancel and Benson voted nay. 12. MATIERS FROM THE FLOOR Doug Malam, Planning Commissioner, reported on the discussions and actions taken at the Commission's August 17 meeting and work session. 13. ADMINISTRATOR AND STAFF REPORTS 11 " . . . REGULAR CITY COUNCIL MINUTES AUGUST 23, 1993 - PAGE 12 Nielsen reported that a temporary occupancy certificate will be granted to the Minnewashta Elementary School to allow a scheduled Open House. Work in the parking area remains to be completed. The school plans include informing parents of parking limitations and providing a police officer to direct traffic during the Open House. The Council interposed no objections to granting the School a temporary certificate. Hurm reported the City will contribute $25 toward the food service in connection with the County-wide Household Hazardous Waste collection scheduled for September 17 and 18. 14. MAYOR AND COUNCIL REPORTS - None. 15. ADJOURNMENT TO WORK SESSION SUBJECT TO APPROVAL OF CLAIMS Benson moved, Stover seconded to adjourn the City Council meeting at 10:00 p.m. to a Work Session, subject to the approval of claims. Motion passed 5/0. RESPECTFULLY SUBMITTED, Arlene H. Bergfalk Recording Secretary TimeSaver Off Site Secretarial ATTEST: J C' .- ~W S C. HURM, CITY ADMINISTRATOR 12