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050597 CC WS Min . . . ~ ~ ,.1" CITY OF SHOREWOOD WORK SESSION MEETING MONDA Y, MAY 5, 1997 COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD 7:30 P.M. MINUTES 1. CONVENE CITY COUNCIL WORK SESSION Mayor Dahlberg called the meeting to order at 7 :45 p.m. A. Roll Call Present: Mayor Dahlberg; Councilmembers Stover, O'Neill and Garfunkel; Administrator Hurm; Planning Director Brad Nielsen; Engineer Larry Brown; Finance Director AI Rolek. Planning Commissioners Borkon, Kolstad, Lizee and Turgeon. Absent: Councilmember McCarty. Review Agenda B. The agenda was approved as presented. 2. COMPREHENSIVE PLAN REVIEW '"' Land Use Section - Including Senior Housing Mayor Dahlberg inquired relative to the amount of land which remains undeveloped in Shorewood. Planning Director Nielsen estimated approximately 10 percent of the land is undeveloped at this time. Mayor Dahlberg requested a summary of the developments currently being completed. Nielsen listed them to be Brynmaur, Heritage, Marsh Pointe, Watten Ponds, Smithtown Meadows, and Smithtown Woods. He listed Manitou Woods, Gideon Woods and Spruce Court as the smaller developments to be completed. Mayor Dahlberg requested an Executive Summary of the land which remains undeveloped. Page LU-I, No.3. Councilmember O'Neill stated he is in favor of affordable housing in Shorewood, however, he felt the wording of this section is slanted more toward developers and he would not be in favor of increased density. Councilmember Stover stated there was an attempt by the previous Council to provide multiple choice housing, however, they also wanted many price ranges. She explained the point of the development cost was to vary the costs of available housing in Shorewood. Mayor Dahlberg felt this section should be prefaced with the preservation of existing affordable housing. He was in favor of increasing the low cost housing without violating the existing zoning. Councilmember O'Neill felt this provision encourages smaller lots to accommodate costs and allow for variety which could result in developers requesting smaller lot sizes based on the wording contained in the Comprehensive Plan. . . . J ~ : . CITY COUNCIL WORK SESSION MINUTES MAY 5, 1997 - PAGE 2 Mayor Dahlberg stated the goal is to preserve the affordable housing which exists as well as increasing it without increasing density. He noted his agreement with Councilmember O'Neill and felt there needs to be some clarification made to this section. Mayor Dahlberg suggested having reviewed this section that any Councilmember or Commissioner wishing to do so should submit proposed wording which can be reviewed at a future work session. Mayor Dahlberg expressed concern the diversity, variety and affordability of housing be preserved. Nielsen inquired whether this section should address affordability as opposed to development costs. Councilmember Stover noted her agreement as did Councilmember O'Neill. Nielsen did feel, however, it would be a legitimate goal for a City to have an awareness of development costs. Page LU-3. Councilmember O'Neill requested a statement of opinion from the City Attorney relative to where the Comprehensive Plan stands relative to land use. Commissioner Borkon felt it should be reviewed and clarified. Page LU-4, No. 11. Councilmember O'Neill felt this section would require a work session of its own. He stated he supports senior housing, however, he did not feel the land costs were conduCive to this type of housing. He felt this would need to be a high density project in order to be made affordable. Councilmember Garfunkel inquired whether or not the City would participate fmancially in order to make the senior housing affordable. Councilmember Stover explained double density had been discussed in the past. In addition, developers would be encouraged to participate with this type of project. Tax Increment Financing had also been suggested. Nielsen felt there to be some urgency to this section in that a development proposal may be forthcoming. Nielsen was unsure whether this proposal would include a request for financial assistance by the City. Councilmember Stover noted one way in which the City does assist with financing is to forgive the park dedication fee. Mayor Dahlberg suggested the Councilmembers and Commissioners review this section and submit their written thoughts on this matter. Councilmember O'Neill noted he is in favor of senior housing, however, he does not think it is practical for Shorewood given the high land costs. Mayor Dahlberg would like to ensure high density is not the only type of housing considered when looking at senior housing. Councilmember Stover did not feel affordable and senior housing necessarily refers to the age of the people residing in the home or the amount of money that particular family has. She explained senior housing was a specific housing design which was intended to have very low maintenance, accessibility and preferably one level. She noted there are homes where seniors reside which would not necessarily be considered senior housing. She further explained in zoning where the density is doubled, the housing would have to conform to that plan. Planning Director Nielsen suggested that senior housing replace the agenda item which is currently scheduled for the next work session given the fact a development proposal may be forthcoming. .. CITY COUNCIL WORK SESSION MINUTES MAY 5, 1997 - PAGE 3 . Commissioner Turgeon felt the current plan covers a variety of housing types such as step-down housing and assisted living,. She noted there could be a combination of types of senior housing. She remarked the Planning Commission has reviewed this issue numerous times and she requested this matter not be presented for their further consideration until the Council has made a clear and concise decision relative to Tax Increment Financing, buying land or rights of first refusal, so that the Planning Commission has a clear direction in which to proceed. Administrator Hurm suggested emphasizing cluster planning and the possibility Shorewood could work with another community relative to some cluster planning which is a concept of the Metropolitan Council. Councilmember Stover remarked that if a proposal comes before the Council at this time, the current Comprehensive Plan indicates the Council will be receptive to the idea. Page LU-5, Paragraph 2. Mayor Dahlberg inquired as to the adverse effects of piece-meal subdivision. Councilmember O'Neill felt it would be necessary to have a map outlining the land which could be subdivided prior to addressing this section. Page LU-5, Paragraph 4. Councilmember Stover commented either the land owner or the City can initiate a zoning change. She commented she did not feel anyone would be in favor of a zoning change since most people prefer not to have change. Mayor Dahlberg stated it would not be his intention to initiate rezoning. Nielsen reviewed the 15 areas which are being suggested for rezoning. Commissioner Kolstad felt it important that the changes being recommended be addressed as quickly as possible so they are complete before developer requests arise. Commissioner Turgeon expressed her agreement. . Mayor Dahlberg proposed the Council discuss alternative methods with which to address the Comprehensive Plan. He suggested the Councilmembers review the items which have been discussed and submit proposed language to be reviewed and considered. Councilmember Garfunkel felt a broader view should be utilized. Councilmember O'Neill pointed out it is the responsibility of the Council to give direction and debate would occur at the Planning Commission level. Commissioner Borkon felt if the Council ~ere to give the Commission clear and concise direction, the Commission could then address these Issues. Councilmember Stover felt it to be the duty of the Council to decide on policy and then leave the language to be determined by the Planning Commission. Mayor Dahlberg suggested summarizing the policies which have been discussed for each section. The Council could then revisit the issue to discuss and finalize the summaries. Commissioner Borkon felt senior housing to be an important issue to be addressed. She suggested the Council discuss the relative issues with staff and then allow staff to summarize the directives of the Council. It was decided the bullet point items would be submitted to the Planning Commission who will then work on the language for the applicable sections. It was agreed Planning Director Nielsen would provide a summary of the sections which were addressed in this session and he will provide this information to the Planning Commission for their consideration. . t t. CITY COUNCIL WORK SESSION MINUTES MAY 5, 1997 - PAGE 4 . Mayor Dahlberg requested the Council review this summary before it is forwarded on to the Planning Commission for their review. The Council will then have an opportunity to comment on the summary prior to its submission. Mayor Dahlberg recessed the meeting at 9:19 p.m. and reconvened at 9:29 p.m. Transportation Section This issue was not addressed. Community Facilities Section - Including Water System Policies The Council reviewed a Memorandum submitted by Brad Nielsen relative to the Community Facilities - Municipal Water dated April 29, 1997. Page CF-3, No.5. It was agreed this provision would be deleted from the Comprehensive Plan. Page CF-5. Mayor Dahlberg would like this section to reflect the policy will be to make the system voluntary. Councilmember O'Neill stated when watermain is installed in front of a home, the property owner will eventually be forced to pay whether by the bank upon a sale of the property or as an assessment when it is initially installed. He noted he would resist this as much as possible. Mayor Dahlberg inquired how much responsibility the City should assume and whether the City should consider itself responsible for the bank's policies. Councilmember O'Neill expressed . concern for the fInancial hardship this could potentially put upon a property owner. Mayor Dahlberg felt there was some consensus in an instance where watermain is a considerable distance from a neighborhood in which a majority of the property owners are desiring municipal water, they would be advised of the cost to bring in the service and informed it may not be fInancially feasible. Councilmember O'Neill asked which systems are at or close to saturation point. Nielsen stated the W oodhaven system has some limited capacity. Amesbury would need to be connected with the Waterford system. Beyond that, the addition of the water tower and the interconnection of the two systems has accomplished a signifIcant portion of the existing plan. Councilmember O'Neill stated he would prefer new developments not hook into the municipal water system. He felt at some point, 60 percent of the city would be hooked into the municipal water system and eventually, everyone would be required to hook up since the majority of the City is hooked up. Councilmember Stover inquired relative to the work to be completed on Strawberry Lane. She suggested this may be an opportunity to inquire of the home owners how many would be in favor of hooking up to municipal water. Councilmember O'Neill stated water quality, repairs, and issues relative to the fact that Strawberry Lane is being reconstructed are all things which need to be considered aside from the fact that people do not want municipal water. Mayor Dahlberg commented the policy is not to expand the municipal water system except when a neighborhood on a feasible basis demands it. He felt the Council should adhere to that policy. . . . . I ,. CITY COUNCIL WORK SESSION MINUTES MAY 5, 1997 - PAGE 5 Councilmember Stover felt the financial implications also need to be considered. Councilmember Stover felt a developer still has a choice. He can choose not to develop in a particular area if he does not want to pay for municipal water. She stated a person who already owns the property and then has water forced upon them, has no choice. Councilmember Stover commented in order to make the system as financially profitable as possible and due to the fact the majority of the City is already developed, she felt the developer in that situation should be required to hook up to the municipal system. Councilmember Garfunkel commented on watermain which would need to be run by homes where the property owner does not want municipal water, but would be assessed for the cost because it runs by their home. Nielsen stated under the current policy it is suggested that new development will be serviced with city water where it is available. Mayor Dahlberg suggested taking the mandatory provision out of the policy and making it voluntary on the part of the developer. Councilmember O'Neill asked, if made voluntary, what would happen to the $10,000 assessment. Nielsen stated those fees would still be applicable to property owners requesting access to municipal water. Mayor Dahlberg stated if municipal water is available, the developer could choose whether or not to hook his development up to that system. Councilmember O'Neill raised the scenario of a neighborhood in which nine property owners would be requesting municipal water and three property owners do not support the request. He stated he would not be in favor of the three property owners being subjected to the costs and assessments associated with connection to municipal water. Mayor Dahlberg was not in favor of allowing three property owners to veto the ability of the nine property owners to have access to municipal water, however, he did not want those three property owners involuntarily connected to and charged for municipal water. Commissioner Turgeon questioned Councilmember O'Neill on whether or not he believes municipal water increases the value of a property. He stated he felt it would increase the value between $1,000 and $2,000. Councilmember O'Neill stated if water is made available to a particular street, then every property owner on that street must be assessed. Brown commented when a subdivision puts in water, the later hook up would then need to be charged an equivalent amount. Councilmember Stover felt it was more reasonable to use the policy in which every property owner is assessed an equal amount for municipal water. She noted the current plan provides that a property owner is assessed a portion of the cost of their particular project. She felt anyone hooking onto municipal water should be charged the same amount rather than an amount based upon the cost of a particular project. She felt it unreasonable to buy a service at a different price based on their physical location. Mayor Dahlberg felt user fees and cost based pricing to be very just. Councilmember O'Neill stated he is in favor of requiring 100 percent of a neighborhood to request water in order to have the ability to hook up, otherwise he would not be in favor of municipal water being forced on someone who does not want it. Councilmember Stover suggested that if there are several homeowners who do not want to hook up, they could be assessed at some point in the future if or when they would decide to hook up to municipal water. . . . . .~ CITY COUNCIL WORK SESSION MINUTES MAY 5, 1997 . PAGE 6 Mayor Dahlberg felt it would be a concession to the democratic structure of life in the City to agree to municipal water at the request of others in the neighborhood knowing he would be forced to pay the assessment at the time of a sale of the home. He stated he is very sensitive to the fact there may be others within the City who do not feel the same. Councilmember Garfunkel felt there would need to be a clear realization by the property owners that at the time of a sale or refinancing of the property, the assessment would need to be paid. Brown gave an example of the person requesting city water who would have their rights infringed upon by those property owners vetoing access to municipal water. Councilmember O'Neill commented the property owners who are not in favor of municipal water would be subjected to unwanted expenses. Commissioner Turgeon felt possibly a new survey should be conducted to determine where property owners stand on this issue. Councilmember O'Neill stated the intent of the Council to complete a random telephone survey. Councilmember O'Neill stated if more than 50 percent of the residents of Shorewood want water, then he would vote in favor of it. Mayor Dahlberg remarked a combination of feasibility and the voluntary nature of the system to be the issues for consideration. The 100 percent policy would result in several property owners holding up the system in that neighborhood, or that several property owners will concede regardless of the cost which would be imposed by the bank upon a sale of the property or even if not forced to hook up. Councilmember Garfunkel commented the market should decide. Councilmember Stover commented on a development where water is not available and existing residents are not being affected by an involuntary assessment. She pointed out the water tower must be financed. Councilmember Garfunkel noted the water tower which was built improved the service to the property owners on that system. He questioned whether those property owners paid for any part of the water tower. Commissioner Turgeon felt this would be double assessing those property owners. Nielsen noted an additional mile of trunk main was installed which benefitted others as well. Councilmember Garfunkel noted the current policy provides that a development is required to hook up to municipal water. Mayor Dahlberg felt it was the consensus of the Council that new developments not be required to hook up. Councilmember Garfunkel felt it should be a market driven approach. The developer can determine whether or not there is a market for homes on municipal water as opposed to private wells. Mayor Dahlberg was in agreement with Councilmember Garfunkel's market driven approach in that the developer, given his profit margin goals in addition to the assessment market, can calculate which is the better alternative. Nielsen summarized the direction of the Council the plan should be voluntary and 100 percent petition would be required. If there is less than 100 percent petition, financial feasibility and consent of those not wanting water would be required. If one property owner does not agree, there would need to be a decision made relative to how this would be handled. Brown felt there could be some problem with pitting neighbor against neighbor. He noted his understanding the project would have to always be 100 percent feasible. . j,"''' CITY COUNCIL WORK SESSION MINUTES MAY 5, 1997 - PAGE 7 . Councilmember Stover commented at Ol1e point, the Council had considered a plan in which it would required a super majority of the Council to override the veto of a single property owner. Councilmember O'Neill stated he would be in favor of this type of resolution. Mayor Dahlberg clarified a petition for water would required financial feasibility and the second requirement would be a 100 percent sign off by the neighborhood where objectors do not have to hook up. Nielsen commented there is a plan for putting water throughout the city as well as an engineering plan indicating the size of pipe to be used. He felt it important to retain that provision of the plan. Councilmember Stover commented when a neighborhood requests municipal water, once a feasibility study comes back and the cost is excessive, the property owners would be allowed to withdraw their petition, however, they would be responsible for the cost of the feasibility study. Councilmember O'Neill requested information relative to the Amesbury neighborhood. Brown inquired of the Council relative to Strawberry Lane. Councilmember Stover felt the neighborhood should be given the opportunity to voice their feelings relative to the installation of municipal water given the upcoming work on that roadway. Councilmember O'Neill requested the fmancial information surrounding this issue be made available so the residents can make an informed decision relative to this. Councilmember Stover suggested as soon as anything is known relative to work on Strawberry Lane, the neighborhood should be informed. Mayor Dahlberg felt the notification would need to be clear they will not be forced to hook up to water. Councilmember Stover suggested simply asking for neighborhood input relative to water. Brown will draft a notice and send it to Council for their review. . Councilmember Stover would like to be careful of the phrasing used so that residents do not feel water is going to be forced upon them. She stated she simply wants the residents informed of the roadway work which will be occurring. They should then be allowed to voice their opinion relative to water. Hurm stated the Council will need to discuss the funding to be used for street reconstruction. Councilmember O'Neill requested information relative to the assessment of roadway reconstruction on Strawberry Lane. Brown noted this matter will come before Council on May 12th for approval of plans, specifications and the advertisement for bids. Mayor Dahlberg felt a budget and a levy should be developed which would be adequate to cover the expense involved in roadway reconstruction. Councilmember Stover referenced an instance where property owners would be taxed for roads they never used or where they had paid for their new roadways at the time they purchased their new home and she inquired whether or not it would be fair to tax property owners for a service they will not benefit from in their life time. Councilmember O'Neill felt it was common practice to be assessed for a street to be rebuilt. Mayor Dahlberg noted he is neutral on this issue. " . .I' . l' , , .' CITY COUNCIL WORK SESSION MINUTES MAY 5, 1997 - PAGE 8 . Brown summarized the direction he received to be to draft a letter that watermains are voluntary, however those hooked up will still be required to pay. He felt Rolek had raised a good point in that since the City is going to adopt a roadway policy, should it be done on the Strawberry Lane project with more of a public process of adopting the assessment policy. Mayor Dahlberg stated he does not want to be in a rush to adopt a new policy without the time to carefully reflect upon it. Brown remarked normally although the roadways are reconstructed approximately every 40 years, in a reclaim, there would be about 10 to 12 years. 3. ADJOURNMENT O'Neill moved, Garfunkel seconded to adjourn the City Council Work Session Meeting at 11:17 p.m. RESPECTFULL Y SUBMITTED, Cheryl Wall at, Recording Secretary TimeSaver Off Site Secretarial ATTEST: tJ . .