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121106 CC Reg Min CITY OF SHOREWOOD CITY COUNCIL REGULAR MEETING MONDAY, DECEMBER 11, 2006 5755 COUNTRY CLUB ROAD COUNCIL CHAMBERS 7:00 P.M. MINUTES 1. CONVENE CITY COUNCIL MEETING Mayor Love called the meeting to order at 7:03 P.M. A. Roll Call Present. Mayor Love; Councilmembers Callies, Lizee, Turgeon, and Wellens; Administrator Dawson; Attorney Keane; Finance Director Burton; Planning Director Nielsen; Director of Public Works Brown; and Acting City Engineer Gurney Absent: None B. Review Agenda Lizee moved, Callies seconded, Approving the Agenda as presented. Motion passed 5/0. 2. APPROVAL OF MINUTES A. City Council Regular Meeting Minutes, November 27, 2006 Wellens moved, Callies seconded, Approving the City Council Regular Meeting Minutes of November 27, 2006, as presented. Motion passed 5/0. 3. CONSENT AGENDA Mayor Love reviewed the items on the Consent Agenda. Wellens moved, Callies seconded, Approving the Motions contained on Consent Agenda & Adopting the Resolutions Therein. A. Approval of the Verified Claims List B. Staffing - City Engineer Appointment (This item was moved to Item 9.F under General/New Business.) C. City Clerk's License Approvals D. Property and Liability Insurance Renewal E. Approving Year 2007 Agreements for Animal Control and Animal Impound Services SHOREWOOD CITY COUNCIL REGULAR MEETING December 11,2006 Page 2 of 13 F. Pay Corrections for Liquor Operations Manager (This item was moved to Item 9.G under GenerallNew Business.) G. Request to Petition the Metropolitan Council Environmental Services for Sanitary Sewer Service of Single Family Residence at 6015 Ridge Road H. Revised Pay Equity Report (This item was moved to Item 9.H under GenerallNew Business.) I. Adopting RESOLUTION NO. 06-101, "A Resolution Authorizing the Mayor and City Administrator to Extend the EPDB Conditional Use License Agreement with Hennepin County for the Year 2007." Motion passed 5/0. 4. MATTERS FROM THE FLOOR There were no matters from the floor presented this evening. 5. REPORTS AND PRESENTATIONS None. 6. PUBLIC HEARING None. 7. PARKS Director Brown stated there had not been a Park Commission meeting held since the last City Council meeting. The next Park Commission meeting was scheduled for December 12, 2006, and the agenda items for that meeting were the Music in the Park event and the Artic Fever event. 8. PLANNING - Report by Representative Commission Woodruff reported on matters considered and actions taken at the December 5, 2006, Planning Commission meeting (as detailed in the minutes of that meeting). A. Conditional Use Permit - Activity Center Addition Applicant: Excelsior Covenant Church Location: 19955 Excelsior Boulevard Director Nielsen related that Jay Anderson, representing Excelsior Covenant Church, had submitted plans for an expansion of the existing building, located at 19955 Excelsior Boulevard. The property was zoned R-2A, Single and Two-Family Residential. Churches were conditional uses when they were located in residential districts; therefore, the applicant has requested a conditional use permit, pursuant to Section 1201.14 Subd. 4. of the Shorewood Zoning Code. There were two phases to the proposed church expansion project. Phase 1 would include the construction of a 6827 square-foot activity center on the SHOREWOOD CITY COUNCIL REGULAR MEETING December 11,2006 Page 3 of 13 main level, with an additional 10,569 square feet on a lower level to accommodate classrooms. Phase 2 would include a 4418 square-foot addition, divided between two levels, along with a new church steeple. It also included the expansion of the narthex and the addition of a "Fire Side Room". Nielsen went on to explain as part of Phase 1 the applicant planned to install City water to provide adequate fire flow for the building sprinkling system; this necessitated the extension of watermain across the north side of the property. The watermain would also be extended to the east edge of the property boundary in order to accommodate further extension to the east in the future. He noted that as a condition of the c.u.P., the Church would have to grant the City an easement over the watermain. With regard to site alteration, Nielsen explained a number of trees on the south side of the site would be lost to the construction of a stormwater treatment pond (which would be located on the south end of the site) and the watermain extension. The mass of an existing berm would being reduced substantially to accommodate required parking and the extension of watermain across the north side of the property, as well as to improve sight lines for the main (only) access drive onto Excelsior Boulevard; the actual height of the berm would be lowered by four feet. To mitigate lowering the berm, a staggered double row of six-foot-high evergreen trees would be extended across the top. City staff had suggested that the watermain alignment across the north side of the site be adjusted to save several trees on the northeast corner of the site, which could include a row of existing arborvitae located there. Nielsen stated Phase 2 of the project was also included in the C.U.P.; but, a condition of the C.U.P. was if a building permit for the second phase addition has not been obtained within five years of the date of approval of the C.U.P., that permit request would be processed as a separate C.U.P. Nielsen noted that based on compliance with the zoning criteria, the Planning Commission had recommended approval ofthe request subject to Staff recommendations. Nielsen stated Jay Anderson was present this evening to answer any question Council may have. Mr. Anderson thanked the Staff for its efforts. In response to a series of questions from Councilmember Wellens, Director Nielsen made the following clarifications. The driveway may be widened a maximum of 2 - 4 feet, but Excelsior Boulevard would not be widened. The tree plantings on the berm would be six feet tall at the onset. The Church would be responsible for the maintenance of the stormwater treatment pond, and that would be addressed in a maintenance agreement. The Church must pay a water connection charge of $15,000; upon completion of the watermain construction, the applicant would be credited the for the construction costs based on the invoices showing the cost of the work. Wellens moved, Turgeon seconded, Approving a Conditional Use Permit for a Proposed Building Expansion for Excelsior Covenant Church, 19955 Excelsior Boulevard, subject to Staff recommendations. Motion passed 5/0. SHOREWOOD CITY COUNCIL REGULAR MEETING December 11, 2006 Page 4 of 13 B. Development Stage Approval for Residential P.U.D. Applicant: Mark Kawell Location: 20025 Manor Road Director Nielsen stated Mark Kawell, who represented Richard Bowman who was the owner of the property located at 20025 Manor Road, was granted concept stage approval for a residential P.U.D. in October 2006. The applicant had proposed subdividing the property located at 20025 Manor Road (which straddled the Shorewood/Deephaven boundary) into four single-family residential lots. The result of that subdivision would be three new building sites (Lots 2 - 4, which would be located in Deephaven), plus Mr. Bowman's existing homesite (Lot 1). Nielsen then stated the City Engineer's staff report relative to the Kawell/Bowman P.U.D. development stage plan covered the very technical requirements associated with road, driveway and utility construction. For example, the watermain must be moved to the opposite side of the road than was originally planned. Nielsen explained that from a planning perspective, the most significant change between the concept plan that was approved in October and the current development stage plan was Lot 4 would now be served from the northerly driveway instead of the southerly access. The concept plan called for a common driveway serving Lots 1 and 2, and a private road serving Lot 3, Lot 4, and the property at 20005 Manor Road. The Bowman Court right-of-way would be vacated with the construction of a private road. When Deephaven approved the concept plan on December 4, 2006, it stipulated the private road must be connected with the common driveway in order to provide a circular pattern for public safety vehicles. Nielsen then explained the City's main concern was that the private road complied with the State Fire Code; therefore, the developer had been asked to provide written comments from the Excelsior Fire District as to the acceptability of the northerly access as a fire access road. Assuming the EFD approved of the plan, the final plat should include a 50-foot easement for the northerly access, and the easement should include the turn-around on Lot 1. That would basically be accomplished with the setback area on Lot 1. In addition, Nielsen explained when the City had approved the concept plan, Deephaven wanted the utilities to be publicly owned and maintained. Therefore, the City granted concept stage approval subject to Deephaven owning and maintaining the sanitary sewer and water systems from Manor Road throughout the development. Deephaven had since decided that it was not necessary for the utilities within the plat to be publicly owned and maintained. The private utilities would be addressed in the development agreement prepared for the final plan stage, and it would be clearly stated that the utilities would be owned and maintained by the property owners. Nielsen stated the Planning Commission recommended approval of the development stage plan subject to Staff recommendations. He stated Mr. Kawell was present at the meeting to answer any questions Council may have. In response to a question from Councilmember Callies, Director Nielsen explained the reason the utilities must be privately owned was the utility lines would be located on private property. SHOREWOOD CITY COUNCIL REGULAR MEETING December 11, 2006 Page 5 of 13 Wellens moved, Turgeon seconded, Directing Staff to Prepare a Resolution with Findings of Fact Approving the Development Stage Plan for a Residential P.U.D. for Mark Kawell, who represented Richard Bowman who was the Owner of the Property Located at 20025 Manor Road, subject to Staff Recommendations. Motion passed 5/0. C. Conditional Use Permit - Accessory Space in Excess of 1200 Square Feet Applicant: Rodney and Nancy Peterson Lcoation: 21355 Christmas Lane Turgeon moved, Lizee seconded, Continuing the Request for a Conditional Use Permit for Accessory Space in Excess of 1200 Square Feet to the February 12, 2007, City Council meeting. Motion passed 5/0. 9. GENERAL/NEW BUSINESS A. Truth-in- Taxation Presentation and Public Comment Administrator Dawson explained the City was not required to hold a separate Truth-in- Taxation Public Hearing this year. According to the State of Minnesota, a hearing was not required if the increase in the City's proposed tax levy was less than the "implicit price deflator" (which was essentially the rate of inflation) for what it costs the government to do business. That rate was 6.41%, and it was calculated by the U.S. Bureau of Labor Statistics and used by the Minnesota Department of Revenue. The City's proposed tax levy increase was 4.91 %. Dawson stated although a public hearing was not required, there would be a presentation of the 2007 proposed budget and levy, and public comment would be taken as if it were a Truth-in-Taxation Public Hearing. He noted this was not the forum to discuss the assessor's valuation of property for tax purposes. That takes place at the Board of Review, generally in mid/late April. Property values for Pay2007 had been set and may not be changed here. Director Burton showed a 10-minute video which identified fourteen reasons property taxes vary from year to year. The video had been prepared by the League of Minnesota Cities, the Association of Minnesota Counties, and the Minnesota School Boards Association. Burton first highlighted the City's 2007 proposed budget and tax levy. The highlights included: there were no levy limits in place for Pay2007; the City was not required to hold a Truth-in-Taxation Public Hearing; the budget included the use of some of the General Fund Reserves for capital purposes; transfers to the Capital Funds were planned; there were no additional staffing changes planned; and the City's tax base increased approximately 12%. Burton then presented information on the City's property tax distribution for 2007 and reviewed the budget preparation calendar. Burton stated the proposed General Fund Budget for 2007 (that was adopted in September 2006) was contemplated at approximately $5,130,000, an amount that reflected an increase of approximately $390,000 over 2006 (or 8.24%). That budget also reflected a tax levy of approximately $4,396,000. She summarized the 2007 Proposed Budget revenues and expenditures. She then summarized the major contributors to the proposed 2007 levy increase. They were: 1) $170,000 for a Public Works Building SHOREWOOD CITY COUNCIL REGULAR MEETING December 11, 2006 Page 6 of 13 Addition (the amount reflects one-half of the estimated costs, the remainder would be incurred in 2008); 2) $80,000 for salary and insurance adjustments; 3) $62,000 for public safety costs; 4) $17,000 for technology upgrades, most notable a new network server; and 5) $13,500 for Senior Community Services. Burton briefly summarized the Enterprise Funds, and subsequent proposed budgets for those funds, including Water Operations, Water Debt Service, Sanitary Sewer, Stormwater Management, Recycling, and Liquor Operations. She noted those funds were designed to be self-supporting (i.e., they would be run similar to a separate business). She highlighted the capital improvement projects planned for the City's Water System, its Sanitary Sewer System, and its Stormwater System. She noted a water rate increase, a sanitary sewer rate increase, and a recycling rate increase were not recommended in 2007; but, a stormwater management rate was proposed for 2007. Burton stated, in summary, total property taxes on a median value home of $419,000 home in Shorewood would be approximately $4,919. The City portion of that tax bill would be approximately $1,127. For that amount of money, residents received a value in City services in the areas of police protection, fire protection, snow plowing, street maintenance, parks and trails, building inspections, and other City services. She commented had the value of a median-valued home stayed constant between 2006 and 2007 there would have been a decrease in the City's portion of the property tax of $85. She also commented the City's tax rate had declined from approximately 32% to 26% between 2003 and 2007. Burton noted she had received a phone call from Pat Niemi, who owned two bungalows, and Ms. Niemi requested Council adopt a conservative 2007 Budget. Harold Ness, 27610 Woodside Road thanked Council for the presentation of the City's proposed 2007 Budget. He then stated he had reviewed the City's 2004 and 2005 Comprehensive Annual Financial Reports, the limited financial information that was available for 2006, and the proposed 2007 Budget. After reviewing the documents he came to the conclusion that an increase in the City's portion of the property tax was not required. Mr. Ness reviewed the 2004 and 2005 actual revenues and expenditures. For 2004 and 2005 combined, the actual revenues exceeded the budgeted amounts by $239,000. The combined expenditures were $267,000 less than the combined budgeted expenditures. Therefore, there was a favorable change of approximately $500,000 for the two years combined. He questioned when, or if, the City's property owners would realize the benefits of that revenue surplus. With regard to revenues from licenses and permits, Mr. Ness stated the combined 2004 and 2005 revenues budget was approximately $388,000, while the combined actual revenues were $644,000. He then stated the 2007 budgeted revenues were $246,000, an amount that exceeded the 2005 budgeted amount by $50,000. Based on the mid-year actual revenues for 2006 (which were $151,000), the projection for 2006 year-end actual revenues would be $300,000 against a budgeted amount of $197,000. Therefore, the actual revenues for 2004 - 2006 would exceed the budget amount by approximately $430,000. He again questioned when, or if, the City's property owners would realize the benefits of that revenue surplus. With regard to the line item Funds Transferred Out in the Sanitary Sewer Budget, Mr. Ness stated $60,000 was budgeted for 2007, nothing was budgeted for 2005 but the actual was $60,000. He then stated the 2005 year-end cash balance for the Sanitary Sewer Operating Fund was $3.5 million, and the SHOREWOOD CITY COUNCIL REGULAR MEETING December 11, 2006 Page 7 of 13 average amount generated from operations for 2004 and 2005 was greater than $300,000. The interest on investments for the $3.5 million for 2005 was $98,000. He questioned the need for $60,000 to be included in the tax levy for sanitary sewer purposes. Mr. Ness stated at the 2006 Truth-in- Taxation Public Hearing he had asked Council why the General Fund could not be reduced by $400,000 to approximately cover the proposed 2006 levy increase. Had that request been granted, the General Fund Reserves would still have been $400,000 higher than the amount of 50% of the operating budget recommended for General Fund Reserves. He stated the 2007 proposed budget reflected there would be a 2007 year-end General Fund balance of $2.9 million (after a transfer out of $100,000). If it was assumed the 2008 budgeted expenditures were 10% more than 2007, then the amount of 50% of the proposed operating expenses recommended for reserves would be $2.5 million. Therefore, the General Fund reserves would be over-funded by $400,000. He questioned the need for an increase in the City's property tax. In summary, Mr. Ness stated because the City had $14 million in cash at 2005 year-end, there was no need to increase the property tax. He asked Council to consider: reducing the increase in budgeted revenues from licenses and permits to $25,000 - $30,000 over 2005; eliminating the $60,000 transfer to the Sanitary Sewer Fund from the General Fund; and reducing the General Fund Reserves by $125,000 - $150,000. Those changes would eliminate the need for a City property tax increase. With regard to the transfer from the General Fund to the Sanitary Sewer Fund, Director Burton explained when the City had purchased the parcel of property adjacent to City Hall, it had done so with an inter- fund loan from the Sanitary Sewer Fund to the General Fund and that loan must be repaid to the Sanitary Sewer Fund; the repayment was being done over a five-year time period. Burton then explained actual revenues from licenses and permits were much higher than budget in previous years because of the significant increase in building and remodeling permits as well as a severe hail storm. The 2007 budgeted revenues were more realistic. Burton also explained the proposed 2007 budget contemplated a $100,000 transfer out of the General Fund Reserves, and that transfer would reduce the General Fund Reserves to 56% ofthe proposed 2007 Budget expenditures. Bill Borkon, who owned property along Christmas Lake, thanked Staff and Council for the quality of the proposed 2007 budget that had been prepared. He stated he appreciated the fact that the City's budgets had been prepared conservatively during his tenure as a Shorewood resident. He explained he was present this evening to appeal to the increase in property taxes that was not City related. He went on to explain that two friends had to sell their homes in the area because they could not afford to pay their continually increasing property taxes. He stated that was un-American from his perspective; the American dream should allow property owners to remain in their homes after retirement as long as their health allowed it. He commented that although he had a lucrative profession, he would not be able to remain in his home until he was deceased because of increasing property taxes. He asked that Council in conjunction with other Lake area communities band together to appeal those increases. It was important that the City made a statement that the continual increases in property taxes must cease. He commented that his total tax increase averaged between 10% - 15% per year.. He stated the communities should collectively appeal the current Minnesota State tax system. Mayor Love stated the City would continue to pursue avenues where economies of scale could be achieved by partnering with other cities. SHOREWOOD CITY COUNCIL REGULAR MEETING December 11, 2006 Page 8 of 13 Mayor Love thanked Mr. Ness for his comments. He stated the Council would have the option to transfer funds from the General Fund Reserves in future budget years if that was deemed appropriate. B. Approving the 2007 Budget and Approving the Property Tax Levy Collectible in 2007 Callies moved, Lizee seconded, Adoptin2 RESOLUTION NO. 06-102, "A Resolution Adopting the 2007 Budgets and Approving the 2006 Property Tax Levy Collectible in 2007." Councilmember Turgeon stated she agreed with Mr. Ness's assessment and recommendation. Motion passed 3/2 with Turgeon and Wellens dissenting. C. Establishing the 2007 Pay Scale and City Insurance Contribution Administrator Dawson explained the proposed 2007 budget reflected adjustments to the City employee salary ranges the City's contribution toward the employee insurance plan, which had been included in a compensation plan Council approved at a July 10,2006, City Council meeting. In response to a question from Councilmember Turgeon, Administrator Dawson explained that the compensation plan that was approved had not included future economic adjustments. Callies moved, Lizee seconded, Adopting RESOLUTION NO. 06-103, "A Resolution Revising the City's Wage and Salary Range Chart for 2007 and Setting the Monthly Employer Contribution Toward the Monthly Insurance Premium for City Employees." Motion passed 3/2 with Turgeon and Wellens dissenting. D. Authorizing the Transfer of Funds Wellens moved, Lizee seconded, Adopting RESOLUTION NO. 06-104, "A Resolution Authorizing the Transfer of Funds." Motion passed 5/0. E. Setting the Year 2007 Stormwater Rates Lizee moved, Callies seconded, Approving ORDINANCE NO. 432, "An Ordinance Amending Section 1301.02 of the City Code: Stormwater Management Charges." Motion passed 3/2 with Wellens and Turgeon dissenting. F. Staffing - City Engineer Appointment This item was pulled from the consent agenda for discussion at Councilmember Wellens' request. Administrator Dawson explained City Council had authorized a new, separate City Engineer position in 2004 for the 2005 budget year. Recruitment and interview processes had been conducted in early 2005 and late 2005. In both instances, employment offers had been made and accepted, but were later withdrawn by the successful candidates. In February 2006, Council had authorized WSB & Associates be retained on an interim basis to provide the City with engineering services four days a week until a full- time in-house City Engineer was hired. In July 2006, Council authorized the services of Springsted, Inc., SHOREWOOD CITY COUNCIL REGULAR MEETING December 11, 2006 Page 9 of 13 to assist with the recruitment effort. He stated Springsted had forwarded three candidates for consideration in late November, and those candidates had been interviewed by Director Brown and him. They had also reviewed comments about the candidates that Springsted had provided. Based on the interviews and the comments, he and Brown recommend the appointment of James Landini to the position of City Engineer. He and Brown were extremely impressed with Mr. Landini's experiences. Mr. Landini also had a special interest and skills in stormwater management. Councilmember Wellens stated if Administrator Dawson held a position of City Manager he would have the authority to hire for a position provided the position had previously been approved by Council. Because Shorewood used the City Administrator form, he thought it was the responsibility of the Council to do the hiring. He expressed concern that he had not had the opportunity to review Mr. Landini's resume or the other candidates' resumes. He stated he would like the opportunity to evaluate the resumes. He stated he was not confident with making a hiring decision without more information. Mayor Love stated under a City Administrator government structure, Council supervised the City Administrator but it deferred hiring decisions to the professional staff of the City Administrator. He then stated based on his knowledge the City Council had never been involved in the selection process other than for the City Administrator position. He went on to state he was extremely comfortable with the lengthy recruitment process that had occurred, which included the involvement of Springsted, Administrator Dawson, and Director Brown. Councilmember Wellens stated he thought it would be move appropriate to delay the hiring of a City Engineer until the new Council was in place. He commented he had reviewed the rationale prepared in 2004 justifying the need for the position. He stated he thought it was a "little odd" to make an offer to the candidate at the last minute of the existing Council's tenure. Councilmember Callies stated the recruitment process was one of the initial items the current Council had considered. The process had been going on for a long time, and the attempt to secure a candidate was not a last-minute effort. There may be differing perspectives among the Councilmembers regarding the need for a full-time in-house City Engineer. She stated she agreed with Mayor Love with regard to the hiring process and the role of Council in selecting a candidate. In the future, should Council deem it appropriate to have a Councilmember involved in personnel selection, than Council could change the process at that time. She was not aware of a situation where Council had been involved in the selection of a candidate with the exception of the City Administrator position. That type of involvement in day-to-day decision making would slow the operation down. She stated because Council was not involved in day-to- day decision making, it did not equate to an abdication of Council responsibilities. Council and the City Administrator always took their oversight responsibilities seriously. Callies went on to state that a full-time in-house City Engineer was urgently needed, and she supported making an employment offer to the recommended candidate. In response to a question from Councilmember Turgeon, Administrator Dawson clarified that it was not common practice for all department heads to be involved in the interview process. He commented that Director Nielsen had been involved in the prior interviewing process for this position as well as an engineer. Springsted had provided quality screening of the applicants during this recruitment process. Turgeon stated she viewed the proposed hiring of a City Engineer as an "eleventh hour speed boat". She did not think there was any reason the decision could not be postponed until the new Council was in place; because of the cost associated with the position she thought it only fair for the new Council to SHOREWOOD CITY COUNCIL REGULAR MEETING December 11, 2006 Page 10 of 13 have input into that decision. She thought it would be disrespectful to the Councilmember-elect to burden him with the hiring of a full-time in-house City Engineer which he would have to later justify; she also thought there was no need to move forward with hiring a candidate at this time. Councilmember Callies stated she totally disagreed with the characterization made by Councilmember Turgeon, and she wanted to make it very clear that the recommendation to hire a City Engineer was not a last-minute decision. She commented she was aware that Councilmembers Turgeon and Wellens did not suppOli a full-time in-house City Engineer position; they had expressed their perspectives over the last year. She stated there had been numerous discussions regarding the need for this position over the last two years and three different recruitment efforts had been conducted; therefore, it was time for Council to take action on the recommendation to make an employment offer. She also stated if any Council were to operate under the premise that it shouldn't make decisions that future councils may not agree with, Council may never make a decision. That was not how Council operated. As was the case with all City staff positions, the need for this position could be revisited in future years. In response to a question from Councilmember Turgeon, Administrator Dawson stated interviews had been conducted over the past two weeks. Mayor Love stated the need for a full-time in-house City Engineer had been discussed for the last 3 - 4 years. Council had discussed it in conjunction with discussions about public works services, engineering services requirements, the extensive workload of various staff members, as well as future needs. He then stated he obj ected to the characterization that this was a last-minute decision. Staff had provided Council with the necessary justification for the position, and was now relying on Council to take action. He went on to state he would support the recommendation. Lizee moved, Callies seconded, Approving the Appointment of James Landini to the Position of City Engineer per the Identified Terms. Lizee stated she was saddened by the fact that Councilmembers Turgeon and Wellens were not in support of the position when it had been discussed, debated, and justified over the past few years. She then stated it was not a last-minute effort to approve making an offer to the candidate. She went on to state it was prudent to move forward with filling that Staff position. Councilmember Wellens agreed that Council had discussed hiring a City Engineer for years. His concern was about the need to quickly make an employment offer to the candidate that had been recommended. Councilmember Lizee noted that this would be the third time an offer had been made for the position; there had been offers extended and accepted the previous two times, but the candidates later withdrew. Qualified candidates would not wait very long for a job offer. Motion passed 3/2 with Turgeon and Wellens dissenting. G. Pay Corrections for Liquor Operations Manager This item was pulled from the consent agenda for discussion at Councilmember Turgeon's request. In response to a question from Councilmember Turgeon, Administrator Dawson stated the suggested amount for the pay corrections for the Liquor Operations Manager had been presented to him and he SHOREWOOD CITY COUNCIL REGULAR MEETING December 11, 2006 Page 11 of 13 agreed with the amount. In response to another question, Dawson stated he had not discussed disbursement alternatives with the Manager yet. In response to another question, Dawson explained performance pay had been paid in the year following the year it was earned. Director Burton explained she had discussed disbursement alternatives with the Manager and they had reached agreement on the best disbursement method. Wellens moved, Callies seconded, Authorizing a $8,225 pay correction for 2004 and 2005 for the Liquors Operations Manager. Motion passed 5/0. H. Revised Pay Equity Report Appointment This item was pulled from the consent agenda for discussion at Councilmember Turgeon's request. In response to a question from Councilmember Turgeon, Director Burton explained Council had had the opportunity to review a Pay Equity Implementation Report included in a February 23, 2006, Council meeting packet and Council had authorized that report for submittal. She commented the State required cities to file a Report with the Minnesota Department of Employee Relations (DOER) every three years. She explained a revised report had been submitted to DOER for its review and temporary approval. DOER required Council approve and authorize the revised Report. She also explained how the report was prepared. Wellens moved, Callies seconded, Approving the Revised 2006 Pay Equity Implementation Report and Authorizing its Submission to the Minnesota Department of Employee Relations. Motion passed 5/0. 10. ENGINEERING/PUBLIC WORKS A. Change Order for Wedgewood Drive, Teal Circle, and Mallard Lane Improvements and Appurtenant Work, City Project 02-02 Engineer Gurney explained what necessitated Change Order 3. During excavation for the watermain installation for Wedgewood Drive, Mallard Lane, and Teal Circle, there had been untimely rain events that created access issues. It was originally anticipated that Class 5 aggregate could be used to maintain a passable temporary road surface. The presence of clay in the subgrade required that the contractor use 1.5 inch rock (approximately 937 tons) to construct the surface for an extra cost of approximately $22,500. The second item on the change order addressed a conflict with a sanitary sewer service that had to be relocated within the right-of-way to allow for the installation of water services to one of the twinhomes on Mallard Lane for an approximate cost of$2,200. The total cost for Change Order 3 was $24,700. Gurney stated in addition to Change Order 3, Staff wanted to inform Council of an increase in the quantities included in the original contract. He explained some over-excavating and backfilling had been anticipated along Wedgewood Drive, east of Mallard Lane. As the road subgrade was being prepared it became apparent that the subgrade would not be able to support the new road surface. Based on the recommendations of American Engineering Testing, Inc., the road was over-excavated and backfilled with sand in order to provide a stable subgrade. Geotextile fabric was place throughout the project corridor as an added safety factor. The approximate cost for that work was $150,000, and Local Road funds would be used to pay for that cost. SHOREWOOD CITY COUNCIL REGULAR MEETING December 11, 2006 Page 12 of 13 Turgeon moved, Callies seconded, Adopting RESOLUTION NO. 06-105, "A Resolution Approving a Change Order 3 for the Wedgewood Drive, Teal Circle, and Mallard Lane Improvements and Appurtenant Work, City Project No. 02-02." In response to a question from Councilmember Wellens, Engineer Gurney clarified the additional $150,000 in costs could be funded from the Local Road funds because it was a defective road and it was not related to the project. Motion passed 5/0. 11. STAFF AND COUNCIL REPORTS A. Administrator & Staff Director Brown stated Staff had notified as many agencies as possible of the temporary closing of Yellowstone Trail in order to cut into the roadway to access the sanitary sewer line. Based on current information, it was anticipated the road would be closed for the day on either December 14 or December 15. He stated there would be advance warning signs stating the roadway would be closed between Country Club Road and Lake Linden Drive. Mayor Love requested an update regarding speed control efforts on Wedgewood Drive. Director Brown explained the "speed display buggy" had been located on Wedgewood Drive the later part of the previous week and again the beginning of this week. The unit must be recharged every three days. The SLMPD had also been conducting radar checks on the road. Administrator Dawson stated the refinancing of the bonds issued for the Public Safety Facilities was progressing as well as could be expected. He noted there would be a brief EDA meeting scheduled for December 18, 2006, to authorize the sale and there would be a Council meeting scheduled immediately following for the same purpose. The Deephaven Council would also consider authorization on that day. The EFD Governing Board and the SLMPD Coordinating Committee would consider refinancing resolutions at their individual meetings on December 20,2006. Dawson stated SLMPD Chief Litsey had authorized a firm to conduct the deer removal effort at the Minnetonka Country Club, and the effort would start this evening. He then stated the Three Rivers Park District had planned an aerial survey in January 2007 in preparation for requesting a deer removal effort in 2007 that could be City-wide. B. Mayor & City Council 12. RECESS TO EXECUTIVE SESSION - CITY ADMINISTRATOR PERFORMANCE REVIEW This Executive Session was rescheduled to December 18, 2006, following the Shorewood EDA meeting. SHOREWOOD CITY COUNCIL REGULAR MEETING December 11, 2006 Page 13 of 13 13. ADJOURN Wellens moved, Turgeon seconded, Adjouruing the City Council Regular Meeting of December 11, 2006, at 8:46 P.M. Motion passed 5/0. RESPECTFULLY SUBMITTED, Christine Freeman, Recorder ATTEST: ~ Christine Lizee, Mayor