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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