052394 CC Reg Min
erIY OF SHOREWOOD
REGULAR CITY COUNCIL MEETING
MONDAY, MAY 23, 1994
COUNCIL CHAMBERS
5755 COUNTRY CLUB ROAD
7:47 P.M.
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MINUTES
1. CONVENE CITY COUNCIL MEETING
The meeting was called to order by Mayor Brancel at 7:47 p.m.
A.
Pledge of Allegiance
B.
Roll Call
Present:
Mayor Brancel; Councilmembers Benson, Lewis, and Stover; Administrator
Hurm, City Engineer Dresel, City Attorney Keane, Planning Director Nielsen,
and Finance Director Rolek.
Absent:
Councilmember Daugherty.
C.
Review Agenda
. Lewis moved, Benson seconded to approve the agenda for May 23, 1994. Motion passed 4/0.
2. APPROVAL OF MINUTES
City Council Regular Meeting Minutes - May 9, 1994
Lewis moved, Stover seconded to approve the Regular Council Meeting Minutes of May 9,
1994. Motion passed 4/0.
3. CONSENT AGENDA
Mayor Brancel read the Consent Agenda for May 23, 1994.
Stover moved, Lewis seconded to approve the Consent Agenda and to adopt the Motions
therein:
A. Appeal Notice to Remove. Appellant: Michael Rodewald. Location: 24770 Amlee
Road. Extension to May 31, 1994.
B. Motion Approving a Liquor Store Lease.
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Motion passed 4/0.
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REGULAR CITY COUNCIL MINUTES
May 23, 1994 - PAGE 2
4.
PARK - Report by representative
Commissioner McCarty reported that installation of playground equipment at Freeman Park
has been completed and expressed appreciation for the assistance of Councilmember Benson
and the Public Works Department. McCarty indicated the Park Commission recommends
Council approval of the appointment of Mr. William Colopoulos, Jr. to the vacant position
on the Commission.
A Motion to Adopt a Resolution Concerning the Appointment of a Park Commission
Member
Benson moved, Stover seconded to adopt RESOLUTION NO. 94-44, "A Resolution Making
an Appointment to the Shorewood Park Commission." William Colopoulos, Jr. - Term
ending December 31, 1996. Motion passed 4/0.
5. PLANNING - Report by representative
Commissioner Malam reported on the action taken at the Planning Commission's May 17,
1994 meeting.
A
Direct Staff to Prepare Finding of Facts for a Sign Variance.
Applicant: Andrew Schmidt-Video Update. Location: 19465 State Highway 7.
Lewis moved, Stover seconded to direct the staff to prepare a findings of facts resolution
for a sign variance subject to the Planner's recommendations for Andrew Schmidt, Video
Update at 19465 State Highway 7. Motion passed 4/0.
B. Direct Staff to Prepare Findings of Facts for a C.U.P. for Accessory Space in Excess
of 1200 Sq.Ft. Applicant: Greg Karas. Location: 5600 Star Lane.
Lewis moved, Stover seconded to direct the staff to prepare a finding of facts resolution for
a C.U.P. for accessory space in excess of 1200 square feet subject to the Planner's
recommendations for Greg Karas at 5600 Star Lane. Motion passed 4/0.
6. CONSIDERATION OF A MOTION REGARDING TECHNOLOGY UPDATES
Mayor Brancel stated the Council met in a Work Session prior to this meeting to consider
in detail the technological needs of the staff and the recommendations for updating the
City's current computer systems. Lewis requested that an implementation schedule be
developed and distributed to the Councilmembers.
Brancel moved, Benson seconded to approve expedited implementation of the 3-phase
proposal, combined into one package, to purchase hardware and software to update the
City's computer technology at a cost not to exceed $65,000. Motion passed 4/0.
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REGULAR CI1Y COUNCIL MINUTES
May 23, 1994 - PAGE 3
7.
CONSIDERATION OF AN ORDINANCE AMENDMENT INCREASING SEWER
RATES
Rolek reviewed his recommendation to increase sewer rates to fully cover Metropolitan
Waste Control Commission (MWCC) charges to the City for the service. He stated that
while negotiations continue, the City's dispute with the MWCC over sewage treatment
charges is not likely to be resolved in the near future. The current rate (effective July 1,
1993) is $59.55jquarter. To cover the City's cost of sewer operation and the rate currently
paid for MWCC charges calculated by the City, the quarterly rate should be increased to
$65.00. However, Rolek pointed out that rate would not cover unpaid MWCC charges
currently billed to the City and would continue to deplete the sewer fund reserve. The
sewer fund reserve has been reduced by $191,000 for 1993 and an additional $52,915 has
been set aside from reserVes for 1994 unpaid MWCC charges. Therefore it is recommended
that the Council increase the residential rate to $77.50 j quarter to cover actual operating
expenses and to fund a reserve for payment of MWCC charges should the dispute result in
an unfavorable resolution to the City. While this represents a significant increase from the
current rate, Rolek indicated such action demonstrates fiscal responsibility and protects the
financial integrity of the sewer fund. Rolek stated that if the outcome is favorable, the
reserve could be used for detection and correction of I & I or rates could be reduced.
Lewis requested clarification of the current deficit for 1994 and the quarterly rate required
to cover the deficit. Rolek stated the deficit to date is $135,000 and the rate required is
$77.50. Lewis requested clarification about validity of the City's method of estimating flow
figures. Dresel explained the estimate is based on assumptions developed from the wettest
and lowest areas in Shorewood. Dresel pointed out the estimate is based on 10% of the
entire flow. He expressed confidence in the methodology, but acknowledged that the
estimate is subject to the vagaries of the legal system. Lewis stated he would not favor
increasing the rate to build a reserve to cover the difference in the amount billed by the
MWCC and the City's current estimated payment and preferred that the MWCC be forced
to levy the residents to collect that amount if legal or legislative remedies do not support
the City's position.
Stover expressed concern about continual erosion of the sewer fund reserves and stated that
is unacceptable on a persistent basis. At a minimum, Stover supported a rate increase to
cover actual current operating expenses.
Brancel pointed out that to increase the rate to cover a possible additional payment to the
MWCC weakens the City's case against the Commission. In addition, she stated that
because the goal is to reduce the residents' sewer rate and to change the billing
methodology of the MWCC, she could not support any further increase at this time.
Keane stated that resolution to the dispute reflecting 1993 charges is anticipated in Autumn
1994 and that 1994's dispute wiUlikely be considered in early 1995.
Benson inquired whether an increase in rates would replenish reserves. Rolek clarified that
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ItEGULAR CI'IY COUNCIL MINUTES
May 23, 1994 - PAGE 4
the recommended $77.50 quarterly rate would cover the charges billed by the MWCC in
1994 but would not cover depletion of the sewer fund reserves. He further stated that while
the fund is not in jeopardy at the present time, an additional 2 years of subsidizing the rates
would place the reserves in a dire position.
During discussion, the Councilmembers generally agreed that Shorewood residents can no
longer be expected to tolerate exorbitant annual rate increases by the MWCC, that an
increase to $65/ quarter to cover actual operating costs is acceptable, and that the City
should expend funds to prove its position relative to the MWCCs billing method with a plan
of lower the sewer rate for Shorewood residents. It was regretfully noted that an increase
in rates to $65.00/quarter at this time will likely make Shorewood's sewer rate the highest
in the metropolitan area:
Lewis moved, Stover seconded to adopt ORDINANCE NO. 292, "An Ordinance Amending
Section 1301.02 of the City Code, Sanitary Sewer Service Charges." Motion passed 3/1.
Brancel voted nay.
8. A MOTION TO ADOPT A RESOLUTION REGARDING A GRANT CONTRACT
FOR A SOUTH SHORE SENIOR COMMUNI'IY CENTER
Hurm explained that eligibility for a $25,150 grant from the Board of Government
Innovation and Cooperation for a South Shore Senior Community Center building requires
that one of the participating cities be designated as the grantee to act on behalf of the other
cities. It is recommended that Shorewood be designated as the government unit to accept
the grant. The schedule under the grant program allows up to 2 years for the cities to
accomplish the project or lose the grant. Mayor Brancel reviewed the status of the actions
taken by other cities regarding support for a Center and pointed out that the Senior Task
Force is currently inactive until a determination of support is reached.
Stover moved, Benson seconded to adopt RESOLUTION NO. 94-45, "A Resolution
Regarding a Grant Contract for a South Shore Senior Community Center from the Board
of Government Innovation & Cooperation (hereinafter Board) To the City of Shorewood
(hereinafter grantee) on Behalf of the Cities of Shorewood, Deephaven, Greenwood and
Tonka Bay." Motion passed 4/0.
9. MATTERS FROM THE FLOOR
Mr. John Anderson, Mayor of the City of Excelsior, stated that open communications among
the Joint Powers Agreement cities is vital to preserve the cooperative arrangements. He
explained that the City of Excelsior's concern regarding the addition of a police position by
Shorewood outside of the Agreement is that it may erode/deteriorate the Joint Powers
relationships and administration of the expense formula.
10.
DISCUSSION ON POLICY ISSUES - None.
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REGULAR CIlY COUNCIL MINUTES
May 23, 1994 - PAGE 5
11. ADMINISTRATOR AND STAFF REPORTS - None.
12. MAYOR AND CIlY COUNCIL REPORTS
Mayor Brancel reacted to Mr. Anderson's comments and noted that a moratorium is
currently being placed against actions affecting the Agreement. The Councilmembers
supported its action to hire a part-time traffic specialist to monitor selected problem areas
in the City, indicated it will have no effect on the Joint Powers Agreement, and agreed that
in the spirit of cooperation and as a courtesy to the other cities, Shorewood will continue
to inform them of any matters under consideration that may remotely relate to provisions
of the Agreement.
Dresel described the recent sewer line problem experienced in the Chartwell Hill area in
response to Lewis' inquiry.
13. ADJOURN SUBJECT TO APPROVAL OF CLAIMS
Lewis moved, Stover seconded to adjourn the City Council meeting subject to approval of
claims at 8:50 p.m. Motion passed 4/0.
RESPECTFULLY SUBMITTED,
Arlene H. Bergfalk
Recording Secretary
TimeSaver Off Site Secretarial
ATTEST:
J
S C. HURM, CIlY ADMINISTRATOR