010807 CC Reg Min
CITY OF SHOREWOOD
CITY COUNCIL REGULAR MEETING
MONDAY, JANUARY 8, 2007
5755 COUNTRY CLUB ROAD
COUNCIL CHAMBERS
7:00 P.M.
MINUTES
City Administrator/Clerk Craig Dawson administered the Oath of Office to newly elected Mayor
Christine Lizee, Councilmember Ward 1 Richard Woodruff, and Councilmember Ward 3 Paula
Callies.
1. CONVENE CITY COUNCIL MEETING
Mayor Lizee called the meeting to order at 7:05 P.M. She welcomed back Councilmembers Callies,
Turgeon and Wellens. She also welcomed Councilmember Woodruff, who was the newest
councilmember and had most recently been a member of the Planning Commission. She stated she
looked forward to working with the Councilmembers and the Staff.
A.
Roll Call
Present.
Mayor Lizee; Councilmembers Callies, Turgeon, Wellens, and Woodruff; Administrator
Dawson; Attorney Keane; Finance Director Burton; Planning Director Nielsen; Director
of Public Works Brown; and Engineer Landini
Absent:
None
B.
Review Agenda
Administrator Dawson requested Item 10.B, Setting Date for Public Information Meeting - Wedgwood
Drive, Mallard Lane and Teal Circle Reconstruction Project, be added to the Agenda for the evening
under Engineering/ Public Works.
Councilmember Woodruff requested an Item 9.B, 2007 City Expenditures Reporting, and Item 9.C,
Authorization for 2007 City Expenditures, be added to the Agenda for the evening under General/New
Business.
Callies moved, Turgeon seconded, Approving the Agenda as Amended. Motion passed 5/0.
2. APPROV AL OF MINUTES
A. City Council Executive Session Minutes, December 11,2006
Wellens moved, Turgeon seconded, Approving the City Council Executive Session Minutes of
December 11,2006, as presented. Motion passed 4/0/1 with Woodruff abstaining.
B. City Council Regular Meeting Minutes, December 11,2006
Callies moved, Turgeon seconded, Approving the City Council Regular Meeting Minutes of
December 11,2006, as presented. Motion passed 4/0/1 with Woodruff abstaining.
SHOREWOOD CITY COUNCIL REGULAR MEETING
January 8, 2007
Page 2 of9
C. City Council Special Meeting Minutes, December 18,2006
Turgeon moved, Wellens seconded, Approving the City Council Special Meeting Minutes of
December 18,2006, as presented. Motion passed 4/0/1 with Woodruff abstaining.
3. CONSENT AGENDA
Mayor Lizee reviewed the items on the Consent Agenda.
Callies moved, Turgeon seconded, Approving the Motions contained on Consent Agenda &
Adopting the Resolutions Therein.
A. Approval of the Verified Claims List
B. Adopting RESOLUTION NO. 07-001, "A Resolution Setting the 2007 Regular
Council Meeting Schedule for the City of Shorewood."
C. Staffing - No action J'equired
D. City Clerk's License Approvals
E. Authorize Signatories for Checks
F. Adopting RESOLUTION NO. 07-003, "A Resolution Approving a Development
Stage Plan and Preliminary Plat for Bowman Addition P.U.D. for Mark Kawell, on
behalf of Richard Bowman who was the Owner of the Property Located at 20025
Manor Road."
G. Adopting RESOLUTION NO. 07-002, "A Resolution Granting a Conditional Use
Permit for Excelsior Covenant Church, 19955 ExcelsioJ' Blvd."
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
A. Report on Park Commission Meeting Held December 12,2006
SHOREWOOD CITY COUNCIL REGULAR MEETING
January 8, 2007
Page 3 of9
Park Commissioner Norman repOlied on matters considered and actions taken at the December 12, 2006,
park Commission meeting (as detai led in the minutes of that meeting).
Councilmember Turgeon stated she had solicited funds for the Music in the Park events, but to-date she
had not solicited any funds for the Artic Fever event.
In response to a question from Mayor Lizee, Director Brown stated Public Works had just begun the
watering for ice rinks and evening flooding of rinks may begin in the next few days but that was weather
dependent.
Director Brown stated securing the necessary funding for Artic Fever had proven to be quite challenging.
He also stated two of the planned Aliic Fever events were dependent on colder weather than there had
recently been.
8. PLANNING
Director Nielsen stated there had not been a Planning Commission meeting since the last Regular City
Council meeting.
9. GENERAL/NEW BUSINESS
A. Woodruff moved, Wellens seconded, Adopting RESOLUTION NO. 07-004, "A
Resolution Making Appointments to Cel'tain Offices and Positions within the City
of Shol'ewood for the Yeai' 2007, sub.ject to the following amendments: Acting
Mayor would be Laura Turgeon; Park Commission Liaison for January - June
2007 would be Richard Woodruff; Park Commission Liaison for July - December
2007 would be Laura Turgeon; Planning Commission Liaison for January - June
2007 would be Paula Callies; Planning Commission Liaison for July - December
2007 would be Marty Wellens; Liquor Stores Committee would be Paula Callies
and Richard Woodruff; Minnehaha Creek Watershed District Liaison would be
Marty Wellens; Riley-Purgatory-BIuff Creek Watershed District Liaison would be
Marty Wellens; Lake Minnetonka Cable Commission would be Richard Woodruff;
Metro Cities (Association of Metro Municipalities) would be Paula Callies, with
Craig Dawson as alternate; Excelsior Fire District Board Member would be Chris
Lizee; and Alternate Excelsior Fire District Board Member would be Paula
Callies." Motion passed 5/0.
Councilmember Callies requested that Staff provide an overview of the contracts or commitments the
City has with the City Attorney, City Prosecutor, Beacon Bank, etc., in a subsequent memorandum.
B. 2007 City Expenditures Reporting
Councilmember Woodruff stated Council should have the tools it needed to ensure adequate oversight of
spending and adherence to budgets, and one of those tools would be frequent reporting by Staff on actual
expenditures versus budget.
Woodruff then reviewed the information he recommended Council receIve for review at the second
regular City Council meeting of each month:
SHOREWOOD CITY COUNCIL REGULAR MEETING
January 8, 2007
Page 4 of9
~ Line item detail, consistent with the departments and line items in the 2007 budget,
showing actual spending by budgeted department versus budget for the month.
~ Line item detail, consistent with the departments and line items in the 2007 budget,
showing actual spending by budgeted depmiment versus budget for the year-to-date,
including a graphical presentation of the total spending versus budget year-to-date.
~ Line item detail and graphical presentation of actual spending year-to-date versus budget
for the combined General Fund budget and for each special fund budget included in the
City's overall 2007 budget package.
Woodruff stated the initial presentation of the above information shall cover the month of January 2007,
December 2006 and 2006 year-end, and that presentation would occur at the second regular City Counci I
meeting in February 2007.
Woodruff moved, Turgeon seconded, Directing Staff to Implement the Recommended System of
Reporting of Monthly and Year-to-Date Actual versus Budget Expenditure Information at the
Second Regular Council Meeting of Each Month with the First Occurrence in February 2007.
Councilmember Callies stated she would suppOli discussion of Councilmember Woodruffs
recommendation, but she was not comfOliable with taking action on the recommendation prior to having
adequate discussion about it and without having input from Staff. She suggested the recommendation be
continued to a work session for discussion, and she would also want to have input from Staff on how the
information should be repOlied. She then stated she interpreted Councilmember Woodruffs
recommendation to mean that he thought Council should have more oversight of the budget; she thought
Council already had a great deal of oversight of the budget. She also stated she did not think it was
necessary for Council to review and manage line-item detail on a monthly basis; Council already
approved the verified claims list at each regular City Council meeting.
Councilmember Turgeon suggested that approving the motion may be an appropriate way to ensure
Council was provided with timely expenditure reporting.
Councilmember Callies questioned what the problem was that Councilmember Woodruff was trying to
resolve with his recommendation. She was not aware of any issues with the City's current financial
reporting, nor was she aware of any serious issues with the City's budget.
Councilmember Turgeon stated there were instances in the 2007 budget where she would have preferred
to have had additional information. She would suppOli continuing this topic to a work session provided
the work session resulted in changes to the current financial reporting process.
Mayor Lizee stated she would like to see this topic continued to a work session.
In response to a question from Mayor Lizee, Director Burton stated she had not been made aware of
Councilmember Woodruffs request for additional expenditure tracking information prior to the meeting.
She explained that Council received the information identified above on a quarterly basis. She stated it
was her understanding that Council established policy, and Staff developed the procedures necessary to
administer policies.
Mayor Lizee stated it would be beneficial for Director Burton to have an oppoliunity to consider the
request and alternative methods of providing the information prior to a work session discussion.
SHOREWOOD CITY COUNCIL REGULAR MEETING
January 8, 2007
Page 5 of9
Councilmember Woodruff stated if Council wanted to continue this topic to a work session rather than
taking action on the request, than that was Council's prerogative.
Councilmember Wellens commented that it appeared the only change would be 1Il reporting the
information monthly versus quarterly.
Administrator Dawson stated he had not seen the request prior to the meeting. He then stated a change to
line-item expenditure reporting would be a change in philosophy in how City financial operations were
currently handled; currently depaliment heads manage their budget to the bottom-line. Therefore, there
would be merit in discussing the level of detail Council would require in the financial repolis.
Administrator Dawson noted the agenda for the January 22, 2007, work session was relatively full;
therefore, this topic should be continued to a second work session on that evening or to a February 12,
2007, work session. Councilmember Callies noted she would not be able to attend the meetings on
January 22, and she would like to paliicipate in the discussion of this topic.
Councilmember Woodruff expressed his concern with the discussion timetable as that would result in
any changes being delayed until mid-March.
Councilmember Callies stated Councilmembers could request a review of financial information anytime
they would like. She then stated it was impOliant for Council to discuss proposed changes in financial
reporting, especially when the changes would result in a change to the City's operating philosophy with
regard to financial repOliing.
Councilmember Wellens stated the January and February financial repOlis could be retroactively created
if repOliing changes were implemented.
Administrator Dawson stated that it typically took the first three months of the fiscal year to determine
any trends in spending.
Councilmember Turgeon stated she thought it would be valuable for Staff to have had an opportunity to
review the request and prepare report mock-ups for review.
Mayor Lizee stated it was important for Council to follow the established process when bringing items to
Council for review and consideration; that process was that significant changes or requests would be
brought to Council for discussion prior to them being brought to Council for action.
Woodruff moved, Turgeon seconding, Amending the Motion to Continue Discussion of the topic of
Implementing the Recommended System of Reporting of Monthly and Year-to-Date Actual versus
Budget Expenditure Information to a City Council Work Session Scheduled for February 12,2007.
C. Authorization for 2007 City Expenditures
Councilmember Woodruff stated that during his campaign for his Council seat and during budget
meetings, he had repeated heard concerns from residents regarding the level of City spending.
Councilmember Woodruff then reviewed the background for the motion he had prepared: City Council
desired to have direct approval for, and control over, City expenditures in calendar year 2007 which, in
SHOREWOOD CITY COUNCIL REGULAR MEETING
January 8, 2007
Page 60f9
the aggregate over the calendar year, consisted of amounts In excess of 95% of the 2007 approved
budgeted amounts.
Woodruff moved Directing Staff to Limit its Monthly and Yeal'-to-Date Spending for all Aspects of
City Operations to 95% of the 2007 Budgeted Amounts Unless Specific Advance Approval was
Secured from the City Council; and the Approval Process would Include the Submission of a
Detailed Plan for the Proposed Expenditures in Excess of 951Yo, and the Plan would include a Cost-
Benefit Analysis and Evidence that such Expenditures would be in Support of Specific Goals and
Objectives Listed in the 2007 City's Prioritized Work Plan.
Woodruff clarified the motion was not meant to say that Council would not spend the last 5% of the 2007
budget; it was intended to allow Council the oPPoliunity to manage the last 5% of the 2007 budget on an
approval basis.
Mayor Lizee suggested discussion of that motion be continued to the February 12, 2007, City Council
work session.
Councilmember Wellens questioned how the proposed process change would work in instances when
expenditures occurred at different levels throughout the year (i.e., expenditures for a line item could be
significantly higher in early months and relatively low in the later months).
Councilmember Woodruff stated he assumed the budget reflected relatively accurate monthly
expenditure projections.
Councilmember Callies stated she was not in support of the motion because the Council had already
approved the 2007 budget, and that approved budget should serve as a guide for depaliment spending.
She questioned what Councilmember Woodruff hoped to achieve by essentially reducing the approved
2007 budget by 5%.
Councilmember Woodruff stated his objective was to ensure Council would be aware of how spending
the last 5% of the approved 2007 budget would suppOli accomplishing the City's goals and objectives.
Director Burton stated Council currently authorized all City expenditures through its approval of the
verified claims list which was presented at each regular City Council meeting, and Council could remove
any of the claims for discussion prior to approving payment of the claim. She commented very routine
expenditures may be pre-paid. She then stated expenditures were not incurred consistently in each month
of the year; for example, it would be difficult not to pay a utility bill in a particular month because
payment of that bill would exceed the 95% threshold. In response to a comment by Councilmember
Woodruff, Burton stated the department heads did not prepare a monthly spending plan for every line
item.
Administrator Dawson stated the budget was prepared to reflect anticipated total yearly expenditures; it
did not necessarily accurately reflect month-by-month spending. He then stated the cash flow was
constantly managed to ensure a positive cash flow for the City.
Councilmember Wellens stated the motion would in effect direct Staff to attempt to spend no more than
95% of the 2007 approved budgeted amount. He then stated that approximately 80% - 90% of the City's
expenditures were fixed expenditures, and Staff should be able to project those expenditures on a
monthly basis.
SHOREWOOD CITY COUNCIL REGULAR MEETING
January 8, 2007
Page 7 of9
Director Burton stated Staff made a conscious effOli to be "thrifty" when spending the City's funds. For
example, Staff actively solicits multiple bids or quotes for services rendered, and those bids were
presented to Council for review and consideration.
Councilmember Turgeon stated the motion would result in a change in policy. She then stated maybe that
result could be accomplished by managing to the 95% threshold on a quarterly basis. She also stated that
because a celiain process has always been followed, it didn't necessarily mean that process is the best
one to follow. She went on to state she would be open to discussing possible changes to City t1nancial
operating practices.
Mayor Lizee stated Staff had already demonstrated its experience with managing to the approved City
budget; and its efforts occur throughout the year, not just at year-end. She commented that Council and
Staff had not yet met to establish the City's 2007-08 goals and priorities. She stated there could be
benefit to periodically review the process used to establish the yearly budget. She noted Staff had
consistently won awards for its accounting practices and financial repoliing. She again stated it was
impOliant for Council to follow the established process when bringing items to Council for review and
consideration.
Councilmember Callies stated the proposed motion was one way of ensuring more frequent monitoring of
the City's budget. She then stated it was important for Council to identify what concerns it wanted to
address with the current financial operating policies and procedures before it could adequately determine
what changes should be implemented; therefore, she would support continuing this topic to a work
sessIOn.
Woodruff moved, Wellens seconded Amending the Motion to Continue Discussion of Limiting
Spending for all Aspects of City Operations to 951Ytl of the 2007 Budgeted Amounts Unless Specific
Advance Approval was Secured from Council to a City Council WOl'k Session scheduled for
February 12,2007. Motion passed 5/0.
10. ENGINEERING/PUBLIC WORKS
A. Approve Plans, Specifications and Estimates and Authorize Advertisement of Bids
for WoodhavenlChanhassen Interconnect, City Project 05-11
Director Brown explained at a July 24, 2006, City Council meeting Council had adopted a resolution
approving plans, specifications and estimates and authorizing advertisement of bids for the Chanhassen
InterconnectionlWoodhaven Well project. At an August 29, 2006, City Council special meeting Council
adopted a resolution accepting bid and awarding contract for the project. At a September 25, 2006, City
Council meeting Council then adopted a resolution rescinding the award of the contract, per his
recommendation, because of the contractor's unresponsiveness. He stated at the time the contract was
rescinded he had informed Council that he would present the request for Council to approve plans and
authorize advertisement for bids to Council in January 2007.
In response to a question from Mayor Lizee, Attorney Keane explained the City was bound by a public
competitive bidding act to execute a competitive bidding process for the purchase of goods or services in
excess of $50,000. The City was then obligated to award the contract to the lowest responsible bidder,
reject all bids, or re-bid the project.
SHOREWOOD CITY COUNCIL REGULAR MEETING
January 8, 2007
Page 8 of9
Council member Wellens commented that the project would be funded entirely with revenue from water
sales.
Wellens moved, Callies seconded, Adopting RESOLUTION NO. 07-005, "A Resolution Approving
Plans, Specifications and Estimates and Authorizing Advertisement for Bids on the Chanhassen
Interconnection I Wood haven Well Project, City Project NO. OS-It." Motion passed 5/0.
B. Setting Date for Public Information Meeting - Wedgwood Drive, Mallard Lane and
Teal Circle Reconstruction Project
Director Brown explained that Councilmember Turgeon had suggested that it could be appropriate to
conduct a post construction neighborhood meeting with the residents of the project area. The purpose of
the meeting would be to provide residents the oppOliunity to voice their concerns about: impacts that may
have occurred during construction, the construction process or items that had not been resolved. He
stated Staff recommended a public information meeting be scheduled for January 30. 2007.
Turgeon moved, Woodruff seconded, Setting 7:00 P.M., ,January 30, 2007, as the Date fOl' a Public
Information Post Construction Meeting for the Wedgewood Road, Mallard Lane, Teal Circle
Reconstruction Project. Motion passed 5/0.
11. STAFF AND COUNCIL REPORTS
A. Administrator & Staff
Director Brown introduced the new City Engineer, James Landini, to Council, and today was his first day
as a City employee.
Administrator Dawson stated the EFD had completed its transition of the Navarre Fire Station to the
Long Lake Fire Depaliment at 10:45 A.M. on January 8, 2007.
Administrator Dawson stated the deer removal process occurring on the Minnetonka Country Club
propeliy had resulted in the removal of approximately eleven deer to-date. It was anticipated there would
be another 6 - 8 deer that would also be removed. He then stated the aerial deer census the Three Rivers
Park District was going to conduct for the City on January 4, 2007, had been rescheduled.
Administrator Dawson welcomed James Landini to the Staff.
B. Mayor & City Council
Mayor Lizee stated she had attended a Public Information meeting at the South shore Center on January
4, 2007. The Metropolitan Council presented and discussed proposed improvements to its regional
sanitary sewer facilities in the area. She then stated a Public Hearing on the same subject was scheduled
for January 17,2007, at the Southshore Center.
12. ADJOURN
Wellens moved, Turgeon seconded, Adjouming the City Council Regular Meeting of Janual'Y 8,
2007, at 8:05 P.M. Motion passed 5/0.
SHOREWOOD CITY COUNCIL REGULAR MEETING
January 8, 2007
Page 9 of9
12. ADJOURN
Wellens moved, Turgeon seconded, Adjourning the City Council Regular Meeting of January 8,
2007, at 8:05 P.M. Motion passed 5/0.
RESPECTFULLY SUBMITTED,
Christine Freeman, Recorder
ATTEST:
Christine Lizee, Mayor