072495 CC Reg Min
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CITY OF SHOREWOOD
REGULAR CITY COUNCIL MEETING
MONDAY, JULY 24, 1995
COUNCIL CHAMBERS
5755 COUNTRY CLUB ROAD
7:30 P.M.
MINUTES
1. CONVENE CITY COUNCIL MEETING
Mayor Bean called the meeting to order at 7:31 p.m.
A.
Roll Call
Present:
Mayor Bean; Councilmembers Benson, Malam, McCarty, and Stover;
Administrator Hurm, City Attorney Keane, City Engineer Dresel, and Finance
Director Rolek.
B.
Review Agenda
McCarty moved, Stover seconded to approve the agenda for July 24, 1995 as
presented. Motion passed 5/0.
2. APPROVAL OF MINUTES
A.
City Council Regular Minutes - July 10, 1995
Benson moved, Malam seconded to approve the July 10, 1995 City Council
Regular Meeting Minutes as presented. Motion passed 5/0.
3. CONSENT AGENDA
Mayor Bean read the Consent Agenda for July 24, 1995.
McCarty moved, Benson seconded to approve the Motions on the Consent Agenda
and to adopt the Resolutions therein:
A . Motion to Accept the Appraisal Report for the Watermain Project.
B. RESOLUTION NO. 95-59. "A Resolution Approving an Agreement for
Engineering Services for Water System Improvements".
C. RESOLUTION NO. 95-60. "A Resolution Authorizing Mayor and City
Administrator to Execute Subrecipient Agreement with Hennepin County
for 1995 (Year XXI) Urban Hennepin County Community Development
Block Grant Program".
Motion to Approve a Sign Permit for the Waterford Shopping Center -
Taher Oriental Rugs. Applicant: Shad Tracy Signs on Behalf of Taher
Oriental Rugs. Location: Waterford Shopping Center.
E. Motion to Authorize an Agreement for Park Project Management Services.
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REGULAR CITY COUNCIL MINUTES
July 24, 1995 - PAGE 2
RESOLUTION NO. 95-61, "A Resolution Declaring the Adequacy of the
Petition for Improvements and Ordering the Preliminary Feasibility Report
in the Matter of the Smithtown Woods Development".
Motion passed 5/0.
F.
4. MATTERS FROM THE FLOOR - None
5. PLANNING - Report by Representative
Commissioner Pisula reviewed the actions taken and recommendations made at the Commission's
July 18, 1995 meeting.
A. Final Plans for the Heritage P.U.D. Applicant: Abingdon Development Corporation.
Location: So. of Edgewood Road Approximately 700 feet East of Howards Point Road.
Hurm reported the resolution and development for the Heritage P. U.D. had been prepared
although some items were still required. He indicated staff recommends approval of the [mal
plans.
In response to Councilmember Stover, Dresel indicated there was no specific timeline for the
required items and there were only minor technical items which needed to be resolved.
Mr. Chuck Dillerud, Abingdon Development Corporation, indicated he was in concurrence with
the development agreement and believed that all required items except one had been submitted.
Malam moved, McCarty seconded to adopt Resolution No. 95-62. "A Resolution
Approving the Final Plat of Heritage P.U.D., Abingdon Development
Corporation, So. of Edgewood Road approximately 700 feet east of Howards
Point Road, subject to staff recommendations. Motion passed 5/0.
6. CONSIDERATION OF APPOINTMENTS TO SNOWMOBILE TASK
FORCE
Benson moved, Stover seconded to direct staff to prepare a resolution for the
August 14 Council meeting naming the Shorewood residents who expressed
interest to the snowmobile task force. Motion passed 5/0.
There was Council consensus to address Agenda Item #8 prior to Agenda Item #7 as it was past
7:45 p.m.
8. PUBLIC HEARING 7:45 P.M. - PUBLIC IMPROVEMENT HEARING
AND ASSESSMENT HEARING FOR THE WATERMAIN PROJECT
Mayor Bean explained one element of the Comprehensive Plan was to enhance the current city
municipal water system. The intent is to interconnect the entire City over a ten year period utilizing
three phases. The first phase would include installation of a water tower on the west end and
interconnection with Boulder Bridge and Badger Field. He explained the importance of the
construction of the water tower to provide for fire flow to the west end.
Dresel exhibited an illustration of the existing water system. He explained there were presently
four hydro-pneumatic systems operating. There was an elevated storage system with well, and
treatment systems located in the southeast area. He explained the problem with hydro-pneumatic
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REGULAR CITY COUNCIL MINUTES
July 24, 1995 - PAGE 3
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systems was the limitation of expansion. Also, if a power outage occurs, the well shuts down
creating a public safety issue. '
Dresel then exhibited an illustration of the proposed improvements. He explained the water tower
will be placed behind Minnewashta School and the extension thereafter. He indicated all
extensions will be placed in the right-of-way of the street.
Mr. Dick Hurley, C.E. LaSalle & Associates, outlined the procedure used in his analysis of the
property assessments. He indicated that from his analysis, he concluded the benefit to the subject
properties proposed to be assessed is greater than the assessment of $5,000.
Rolek explained the assessment formula. He indicated each lot unit would be assessed $5,000.
The assessment could be spread over a 15 year period at a rate of 7%. This would result in a
yearly payment of $550. He explained if City Council approved the project and assessments, the
affected property owners would have 30 days to prepay the assessment without incurring interest
charges. The amount could also be prepaid anytime thereafter, eliminating future interest charges.
He indicated there was also the possibility to prepay a portion and spread the remainder over 15
years but this decision had not yet been made.
Hurm explained the schedule for the three stages of public hearings. One for Manitou Rd, one for
Howard's Point Road and one for Smithtown Road.
Dresel explained the assessment of $5,000 was to provide water to the right-of-way. The
individual resident would be responsible to get the water to the house. This would be performed
by a plumber for approximately $8 to $12 per foot plus the charge for the water meter and dial of
$200.
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Hurm explained new lots would have an additional $5,000 trunk charge. This would have no
effect on lots of record.
A. 7:45 p.m. - Emphasis on Manitou Road
Mayor Bean explained the procedure for a public hearing and opened the public hearing at 8:20
p.m.
Mr. Tom Sims, 5620 Manitou Road, presented the City Council with a written appeal to the appeal
process. He questioned the reasoning for extending the water trunk down Manitou Road as there
was nothing located in that area. He indicated all developments in the area were currently 'hooked
to the Tonka Bay system. He stated these properties would receive no benefit but would still be
assessed. He questioned the formula for commercial assessments.
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Rolek explained the formula for commercial property was 1-1/2 x $5000 = $7500 x the number of
commercial units. A commercial unit is considered to be approximately 40,000 square feet of land
or approximately one acre.
Mr. Sims stated he owned a parcel of land with nothing on it. He indicated he did not feel the
benefit would match the cost of the proposed charge to the property. He noted his objection to the
extension of the watermain project as he felt it was not necessary. He indicated if the developer
wants water then he should pay the fees. He stated as he understands the formula, he will be
required to pay $7,500 in assessments and the other $30,000 will be deferred until a developer
buys the land. At the time of such development, there will be a huge assessment which will come
directly off the market value of his land. He stated he felt the assessment formula could be done in
an extremely more equitable way.
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REGULAR CITY COUNCIL MINUTES
July 24, 1995 . PAGE 4
Mr. Mark Sawyer, 5580 County Road 19, indicated he had been assessed based on proposed plat
approval rather than at the single residential rate. He stated plat approval had been delayed due to
the development moratorium, and the proposed assessments were a great percent of the value of
the property and may affect the feasibility of the project. He questioned the overall assessment
formula and its fairness. He did not agree that if a person bought a house on a newly divided
parcel or a subdivision, his market value would double and justify the assessment being doubled.
He asked the City Council reconsider the formula used to determine residential assessments.
B. 8:30 p.m. - Emphasis on Howard's Point Road and Edgewood Road
Dresel explained the placement of the watermains in this area. He indicated they do not plan to
remove any trees and the service lines will be under the asphalt.
Mr. Greg Sochko, 5600 Wedgewood Drive, asked if there were any number of petitions that could
effectively stop this project from proceeding. He stated he was not in favor of the proposed
watermain extension.
Mayor Bean indicated there was not a specific number of petitions that could cause this project to
happen or not happen. He indicated this is a decision to be made by the City Council which will
fulfill the future needs of the City of Shorewood as laid out in the Comprehensive Plan.
Ms. Marla Bookhout, 26755 Noble Road, indicated she lived in a new development which abuts
Heritage and all the residents have private wells. She asked if these properties will be assessed as
they may never have City water. She also inquired as to the appearance and height of the water
tower.
Dresel indicated these properties would not immediately be assessed. He explained this was the
reason for the project being conducted in three phases. The most recent developments would be
postponed to the end of the project as it was not sensible to tear up new asphalt. He explained the
water tower would be approximately the same height and the same shape as the existing tower on
Highway 7.
Ms. Becky Marshall, 26525 Strawberry Court, asked when her area would be connected as all
residents had brand new wells.
Dresel indicated Strawberry Lane would probably be connected in three to four years but it would
not be realistic to look at the new streets until the last phase of the project, in 10 to 15 years.
Mayor Bean explained the City would like to get the core infrastructure into place and then to the
extent possible, coordinate the extensions with street reconstruction.
Mr. J. B. Ridding, 5885 Strawberry Lane, indicated the developments only constituted 20% of the
total homes in the City. He stated the developers would still come in and do the developments
even if the City did not provide the water.
Mayor Bean explained City-wide municipal water was necessary due to the extent development
was occurring now.
Mr. Hidding asked what the total cost for water per month would be per home and if sewer
charges would drop proportionate to water charges.
Rolek indicated the minimum water charge per quarter was $22.50 per resident, with the average
bill between $35 and $40 per quarter. He indicated the sewer charges were a flat rate because there
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REGULAR CITY COUNCIL MINUTES
July 24, 1995 - PAGE 5
was no available means to measure the amount of sewer usage. He reported if every home was on
City water, a system could be developed for sewer to be paid proportionate to water usage.
In response to Mr. Hidding, City Attorney Keane indicated the special assessment process
allocates the cost of public improvement can be initiated by 35% of the affected property owners or
by the initiative of City Council. He stated the proposed improvements have been an outgrowth of
the Comprehensive Plan and water study plan process and have not been brought on by petition.
He indicated there is no mechanism for the City's decision to be overturned by petition of affected
property owners or voters.
Mr. Terry Forbord, Lundgren Bros, presented the City Council with written comments regarding
their position on the proposed watermain improvements and assessments.
Mayor Bean noted a letter was received from Dave Albrecht, Howards Point Marina, serving
notice that they do not want the proposed water service.
Ms. Kristy Williams, 26425 Strawberry Court, asked if any of the Councilmembers lived in the
affected area. It was reported that two of the Councilmembers were already on City water and the
three others would be affected.
Mr. Steve Guzzi, 26650 Strawberry Court, asked if a lot would be assessed immediately if it were
touching the stub going through on Strawberry Lane.
Dresel indicated the assessment ordinance stated comer lots would be assessed when City water
becomes available. He indicated in this case, the water would probably not be available, as it
would not be connected up to the driveway.
Mr. Guzzi asked when the project would be implemented and also what Mr. Forbord's comments
had been in his letter presented to the City Council.
Dresel reported if the City Council proceeds with the project, it would obtain plans and
specifications and obtain bids in late August, with construction starting this fall. The construction
of the water tower will not be completed for approximately one year. Mayor Bean read the six
points of summary from the letter presented by Mr. Terry Forbord.
Mr. Clint Carlson, indicated he didn't care if the water project was done or not but felt the
assessment system was unfair.
Mr. Eric Olson, 26550 Strawberry Court, indicated he had not received notice of the public hearing
and asked if his property would be assessed. He stated he did not see the fairness in the water
assessment formula. He indicated it was incorrect to say there was no service available for
emergencies, as all cities have a contingency plan. He expressed his objection to the project as a
new homeowner with a new well.
Dresel indicated Mr. Olson would not have received notice as only the affected property owners
received notice of the public hearing. He indicated the Fire Department does have a contingency
plan intact. They utilize tankers, and dry hydrants have also been installed in specific areas of the
City. He indicated the philosophy behind the trunk charges was the existing residents have
subsidized the projects through taxes they have been paying over the years, new lots haven't.
Mr. Sims indicated this would drive up the prices of land in Shorewood. He again addressed the
issue of fairness.
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REGULAR CITY COUNCIL MINUTES
July 24, 1995 - PAGE 6
Mr. Carlson stated he felt there should be one fee for one type of use. The fee should be the same
for everyone whether they have been in the City or not. He indicated other cities charO"e so much
per linear foot. He felt the Council should investigate what other cities do. I:>
Mayor Bean explained the City created a water assessment task force which consisted of the five
Councilmembers, Staff and four citizens who were approached and requested to participate. He
indicated the formula was derived after hours of debate. He indicated the developers may have to
pay initially but ultimately the homeowners pay the assessments. The new homeowners will be
able to spread this fee into a 30 year mortgage but the existing homeowners cannot. He explained
the concern with the front footage formula is that it would lead to development. He indicated the
Council is trying to stay as development neutral as possible.
Councilmember Benson excused himself from the meeting at 9:28 p.m. Mayor Bean recessed the
meeting at 9:28 p.m. and reconvened the meeting at 9:35 p.m.
Mr. Bill Diem, 5755 Smithtown Circle, commended the City Council for their diligence. He
indicated he thought the progress was necessary. He noted the sewer going to commercial
property was six inches in comparison to the line of one inch going to residential properties. He
stated he works for a design builder and $5,000 was not an unreasonable assessment. He stated
he felt it would be ludicrous to postpone the project. He also indicated there was a law soon to be
placed before the City Council which would require mandatory fire protection. If the City was
forced to put the water in then, it could result in the loss of competitive bidding. Mr. Diem
indicated there were many residents who wished to prepay the assessment but it may be more fair
to allow them more than thirty days to do so.
Keane indicated the State Statute does not allow the City much flexibility with regard to the
payment of the assessments.
McCarty moved, Malam seconded to continue the public hearing for public
improvements and assessments for the water improvements to Tuesday, July 25,
1995 at 7:30 p.m. The motion passed 4/0.
7. ADMINISTRATOR AND STAFF REPORTS
A. Review Status of 1995 Objectives
Hurm indicated this report was distributed on a quarterly basis and welcomed any questions the
Councilmembers may have.
B . Review Staff Recommendation for Placement of Stop Signs - Shorewood Oaks
Hurm reported staff concurred with the Police Chiefs recommendation regarding the placement of
stop signs in Shorewood Oaks. Councilmember McCarty indicated this placement of the stop
signs was what the group was looking for and they would also ask for additional police
enforcement.
McCarty moved, Stover seconded to direct staff to move the existing stop sign
from Maple Leaf Circle westerly to the west intersection of Oak Leaf Trail and
Shorewood Oaks Drive. The motion passed 4/0.
Keane indicated the redraft of the lease agreement for the Senior Community Center should be
circulated to the cities by the end of the week.
9. MA YOR AND CITY COUNCIL REPORTS
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REGULAR CITY COUNCIL MINUTES
July 24, 1995 . PAGE 7
Councilmember McCarty reported she had been contacted by Debra Borkon regarding a water
quality study of Christmas Lake conducted in cooperation with the Christmas Lake Homeowners'
Association and the City of Chanhassen. There was Council consensus to ask the Christmas Lake
Homeowners' Association to make a presentation at the August 14, 1995 Council meeting.
Councilmember McCarty also questioned if portable sanitation units were allowed on private
yards. Staff indicated they would check the City Code.
Mayor Bean asked if Mr. Boyer had been required to obtain a permit for an ice cream social.
Hurm indicated his interpretation was that he would not require a permit for this event.
Mayor Bean commented on the incredible progress that was made at the meeting last week with
representatives of the four cities involved in the Senior Community Center project.
Councilmember Stover expressed her thanks to Mayor Bean for his efforts in the project. Mayor
Bean acknowledged all the efforts other Councilmembers have put into the meetings.
10. ADJOURNMENT SUBJECT TO APPROVAL OF CLAIMS
Malam moved, McCarty seconded to adjourn the City Council meeting at 10: 10
p.m., subject to approval of claims. Motion passed 4/0.
RESPECTFULL Y SUBMITTED,
Lorri L. Kopishcke
Recording Secretary
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ROBERT B. BEAN, MAYOR