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062507 CC Reg Min CITY OF SHORE WOOD CITY COUNCIL REGULAR MEETING MONDAY, JUNE 25, 2007 5755 COUNTRY CLUB ROAD COUNCIL CHAMBERS 7:00 P.M. MINUTES 1. CONVENE CITY COUNCIL REGULAR MEETING Mayor Lizee called the meeting to order at 7:03 P.M. A. Roll Call Present. Mayor Lizee; Councilmembers Callies, Turgeon, Wellens and Woodruff; Administrator Dawson; Associate Attorney Mayeron; Finance Director Burton; Director of Public Works Brown; and Engineer Landini Absent: None B. Review Agenda Wellens moved, Woodruff seconded, Approving the Agenda as presented. Motion passed 5/0. 2. APPROVAL OF MINUTES A. City Council Regular Meeting Minutes, June 11,2007 Callies moved, Wellens seconded, Approving the City Council Regular Meeting Minutes of June 11,2007, as presented. Motion passed 5/0. B. City Council Work Session Minutes, June 11,2007 Turgeon moved, Woodruff seconded, Approving the City Council Work Session Minutes of June 11, 2007, as presented. Motion passed 5/0. 3. CONSENT AGENDA Mayor Lizee reviewed the items on the Consent Agenda. Turgeon moved, Wellens seconded, Approving the Motions Contained on the Consent Agenda and Adopting the Resolutions Therein. A. Approval of the Verified Claims List B. Staffing - Approving the Appointment of a Part-time, Temporary Office Assistant C. Adopting RESOLUTION NO. 07-041, "A Resolution Granting a Conditional Use Permit for the Construction of an Accessory Building at the Excelsior Covenant Church." SHORE WOOD CITY COUNCIL REGULAR MEETING June 25, 2007 Page 2 of9 D. Accept Storm Water Pollution Protection Program (SWPPP) Report and authorization to submit to the Minnesota Pollution Control Agency (This was moved to Item 10.B under Engineering/Public Works) E. Setting July 18,2007, 7:00 p.m., for the Public Information Meeting for the Amlee Road, Manitou Lane, Glen Road Street Reconstruction Project F. Approve Private Use of Public Drainage and Utility Easement Motion passed 5/0. 4. MATTERS FROM THE FLOOR There were no matters from the floor presented this evening. 5. REPORTS AND PRESENT A TIONS A. Audit Report by Andrew Berg, CPA, Abdo, Eick and Meyers Administrator Dawson explained the City of Shorewood's 2006 Comprehensive Annual Financial Report (CAFR) had been prepared Abdo, Eick & Meyers, and Andrew Berg, with the firm, would highlight the findings this evening. Mr. Berg presented Mayor Lizee, on behalf of the City, with the Certificate of Achievement for Excellence in Financial Reporting awarded by the Government Finance Officers Association for its CAFR for the fiscal year ended December 31, 2005. Mr. Berg noted that this was the fourteenth consecutive year that the City had received the Certificate. Mayor Lizee stated the award was a reflection of the skill and tenacity of the Staff. Mr. Berg stated there was a "clean" opinion on the financial statements and there were no findings found throughout the audit. He noted there were no instances of non-compliance with Minnesota statutes. Mr. Berg provided a financial overview of the City's expenditures and revenues. He noted during 2006, the General Fund revenues had exceeded expenditures by $390,725 which resulted in an increased fund balance of slightly over $3.3 million, or 66% of 2007 budgeted expenditures. With regard to Debt Service Funds, he stated the 1993 Improvement and Refunding Bonds had been paid in full, and recommended Council approve a transfer of remaining funds in 2007 to close the fund. He noted the Waterford III Tax Increment Bonds had also been paid in full, and the balance of that fund must be used for a purpose consistent with the tax increment financing plan. He stated there was $11,555,000 in outstanding bonds for the Public Safety Building. With regard to Capital Projects Funds, he explained the MSA Construction balance had a deficit of $170,209, and he recommended the City monitor that deficit and put a plan in place to eliminate the deficit. The 2006 year-end Street Reconstruction Fund had a balance of approximately $1.2 million. Mr. Berg then highlighted the Enterprise Funds (sewer, water, storm water management, recycling and liquor). SHOREWOOD CITY COUNCIL REGULAR MEETING June 25, 2007 Page 3 of9 With regard to Liquor Funds, he stated the gross profit for both stores was 27% (the State-wide average was 24%). The operating expenses exceeded the State-wide average for both stores, resulting in an operating income loss. With regard to the Water Fund, he explained it was important to maintain the reserve balance of approximately $3.7 million because of the approximate $3.9 million in bonds outstanding. He recommended the City consider monitoring other City departments usage of water and sewer, and that the City consider charging for it if the usage was significant. With regard to the Sewer Fund balance, he explained the City had a reserve balance of approximately $3.9 million and it had no outstanding debt. He recommended the City review rates in order to counter the increasing costs of operations. With regard to the Recycling Fund, he explained there was an approximate balance of $83,500. With regard to the Stormwater Management Utility Fund, he explained there was an approximate balance of $276,000. Mr. Berg stated a peer group analysis was included in the 2006 Financial Report for the first time; the peer-group average consisted of the average of Abdo, Eick and Meyers' client base of approximately 90 cities. The following ratios were included in the analysis: liquidity, solvency, funding, and common-size. He clarified that if the cities were grouped by small, medium and large and if an analysis was done based on those groupings the averages would be similar to those of the 90-city averages. Mr. Berg stated that new auditing standards would be in effect for the 2007 audit. The City's internal controls would be reviewed more closely. Councilmember Woodruff stated the Financial Report was very clear and very thorough. He also stated the materials prepared by Staff for the audit were indicative of the Certificate of Achievement that was received. Wellens moved, Woodruff seconded, Accepting the 2006 Comprehensive Annual Financial Report (CAFR) and Recommending the CAFR be sent to the State Auditor for review. Motion passed 5/0. 6. PUBLIC HEARING A. Land Use Fees Mayor Lizee opened the Public Hearing at 7:21 P.M. Administrator Dawson explained that any proposed change to land use fees required the City to hold a public hearing. Staff recommended the City charge for conducting a sketch plan review for subdividing property; it recommended the fee be set at $200 to cover the "typical" application. Staff would spend approximately five hours to conduct a "typical" review, and loaded Staff labor rates were $55 - $60 per hour; the first hour of Staff time was not charged for. Administrator Dawson stated Council would take action on this fee change and other mInor fee adjustments at its July 9,2007, meeting. SHOREWOOD CITY COUNCIL REGULAR MEETING June 25, 2007 Page 4 of9 Seeing no one present wishing to speak on this topic, Mayor Lizee opened and closed the public testimony portion of the Public Hearing at 7:24 P.M. Administrator Dawson clarified this fee would only apply to a subdivision of property. Councilmember Callies stated she thought the $200 rate was very reasonable. Woodruff moved, Wellens seconded, Directing Staff to Prepare a Resolution Approving the Amendments to the City's Fee Schedule. Motion passed 5/0. Mayor Lizee closed the Public Hearing at 7:26 P.M. B. Vacate Drainage and Utility Easements - 5615 and 5635 Fairway Drive Mayor Lizee opened the Public Hearing at 7:26 P.M. Administrator Dawson explained that the City was required to hold a public hearing if it was going to consider vacating drainage and utility easements. Dawson stated Mr. and Mrs. Gutierrez, 5615 Fairway Drive, and Mr. Putnam and Ms. Gallager, 5635 Fairway Drive, had requested the City vacate the drainage and utility easement within their former lot boundaries. Engineer Landini explained in 2005 the applicants' lots had minor subdivision with new drainage and utility easements placed along the perimeter of the new lot boundaries as required by the City's zoning ordinances. Chris Putnam, 5635 Fairway Drive, stated Mr. and Mrs. Gutierrez were also present this evening. He stated they were all present this evening to ensure the approved request, should it be approved, was specific. He stated he also wanted to express his concern about the process the applicants had been through. Mr. Putnam stated that in 2005 a minor subdivision was approved for an adjoining property which resulted in the two properties adding additional property to their then existing properties. He noted that neither of the applicants vacated the easements at the time the additional properties were acquired. He stated in December 2005 the applicants requested the drainage and utility easements be vacated. At that same time Mr. and Mrs. Gutierrez had also applied for a grading permit to install a tennis court; the City would not issue the grading permit until stormwater issues were resolved which required drainage calculations be submitted. The Gutierrezes had since decided to install a different type of tennis court which did not require a grading permit. The stormwater issues associated with the grading permit became an issue with vacating the easements. The applicants perceived that to be a change in the City's requirements from when the other property was subdivided. Mr. Putnam stated the applicants had spent approximately $8,000 collectively on surveys and legal fees trying to resolve the issue. Mr. Putnam stated he and the other applicants wanted to ensure it would be the City Engineer's specific recommendation as to what requirements had to be satisfied to approve the easement vacation. SHORE WOOD CITY COUNCIL REGULAR MEETING June 25, 2007 Page 5 of9 Seeing no one present wishing to speak on this topic, Mayor Lizee opened and closed the public testimony portion of the Public Hearing at 7:33 P.M. Director Brown explained that when the Guiterrezes proposed installing a tennis court, Staff had concern about the impact of stormwater runoff on some of the neighboring properties. He stated when the Country Club Meadows development was platted there had been lengthy discussion about stormwater runoff. Staff recommended not to vacate the easements until they were confident the drainage would be split two directions. Brown noted that the City had received the drainage calculations, and Staff was satisfied with the calculations; and the draft resolution should remove wording that vacation would be contingent on subsequent approval of the City Engineer. Wellens moved, Turgeon seconded, Adopting RESOLUTION NO. 07-042, "A Resolution Approving Easement Vacation at 5615 and 5635 Fairway Drive." Motion passed 5/0. Mayor Lizee closed the Public Hearing at 7:36 P.M. C. Vacate Public Right-of-Way - Bowman Third Addition Mayor Lizee opened the Public Hearing at 7:36 P.M. Administrator Dawson stated that the request to vacate a public right-of-way also required a public hearing to be held. Dawson explained that in May 2007 Council approved the final plat for Bowman 3rd Addition, a subdivision that created three new lots in Deephaven that would be accessed from Manor Road in Shorewood. Because the new road serving the Deephaven lots would be privately owned and maintained, the plat included vacation of the public right-of-way previously platted as Bowman Court. Seeing no one present wishing to speak on this topic, Mayor Lizee opened and closed the public testimony portion of the Public Hearing at 7:38 P.M. Woodruff moved, Turgeon seconded, Adopting RESOLUTION NO. 07-043, "A Resolution Vacating Bowman Court". Motion passed 5/0. Mayor Lizee closed the Public Hearing at 7:39 P.M. 7. PARKS A. Report on Park Commission Meeting Held June 12,2007 Commissioner Trent reported on matters considered and actions taken at the June 12, 2007, Park Commission meeting (as detailed in the minutes of that meeting). He also stated the summer recreation programs put on by the MCE were underway; a skate board camp was scheduled for early July; and the Children's Music in the Park event was scheduled for June 27, 2007. Councilmember Callies stated she was aware that Silverwood Park was highly used. Based on that, she questioned why the Park Commission suggested the City hire a consultant to help the Commission SHOREWOOD CITY COUNCIL REGULAR MEETING June 25, 2007 Page 6 of9 explore options and trends in Park Planning. Commissioner Trent stated the Commission wanted to ensure the full potential of the Park was utilized. Councilmember Callies questioned if it would be appropriate for the Park Commission to coordinate an educational workshop for residents on what resources were available to help with managing water quality in small ponds. Director Brown related the Park Commission had previously decided that it did not want to become involved with stormwater issues. He suggested Engineer Landini could possibly coordinate a workshop for that purpose. Councilmember Wellens stated he would want to see specific information about the use of the Manor Park tennis courts and the residents' desires available before any action was taken to eliminate the existing courts. Commissioner Trent stated the Park Commission thought it would re-solicit information from the residents in the Manor Park area with regard to their use of the courts. Councilmember Callies stated residents outside of the Manor Park area also used the tennis courts at Manor Park; therefore, any survey taken should not be specific to those residents only. 8. PLANNING Commissioner Gniffke reported on matters considered and actions taken at the June 19, 2007, Planning Commission meeting (as detailed in the minutes ofthat meeting). 9. GENERAL/NEW BUSINESS A. Appeal Zoning Violation Notice Appellant: Thomas and Patricia Scherber Location: 5080 Shady Island Trail Administrator Dawson stated the City had received a request to appeal a zoning violation. He stated it was unclear if there had been adverse possession. Associate Attorney Mayeron eXplained the City had received a complaint alleging that Thomas Scherber, 5080 Shady Island Trail, had added fill and paved his driveway over his property line onto an adjacent vacant lot (which was owned by the Shady Island Home Owner's Association). The complaint also cited a small utility building and various construction materials that had accumulated on the property over the years. The complaint was found to be accurate. Mayeron related that Mr. Scherber had stated that he and his wife may have gained title to some of the adjacent property through adverse possession. Mayeron explained that a building on a vacant lot was a zoning violation. Mayeron stated that Staff recommended the Scherbers be given time to file an adverse possession claim. If the Scherbers could establish adverse possession, then the property line would essentially be moved. Mayeron explained that adverse possession means if two adjacent property owners behave over a period as though the property line was in a location other than where it actually was, then the assumed property line becomes the actual property line. Mayeron then stated the Scherbers would have to file an adverse possession lawsuit within thirty days. The lawsuit would have to be resolved within six months. He clarified the time period would start this evening if Council approved Staff's recommendation. SHORE WOOD CITY COUNCIL REGULAR MEETING June 25, 2007 Page 7 of9 Woodruff moved, Wellens seconded, granting Thomas and Patricia Scherber a thirty-day extension to appeal their zoning violation notice and six months to resolve the case. Motion passed 5/0. B. Park Commission Appointment Administrator Dawson stated that Park Commissioner John Moonen had submitted his resignation from the Park Commission as he was relocating. He then stated Council may want to consider appointing one of the remaining two candidates, Travis DeMers and Steve Quinlan, it had interviewed in March 2007 to fill that vacancy. Callies moved, Woodruff seconded, Approving RESOLUTION NO. 07-044, "A Resolution Making the Appointment of Steve Quinlan (for a term ending February 29, 2008) to the City of Shorewood Park Commission." Motion passed 5/0. 10. ENGINEERING/PUBLIC WORKS A. Change order to Radio Read Water Meters Director Brown stated at its May 29, 2007, meeting Council awarded the contract for replacement of a portion of the City's water meets and automated system to Northern Water Works. At that meeting there was discussion with regard to the City continuing to proceed with the replacement of the two-inch and three-inch meters as a cost savings measure. Brown explained if the City opted to not replace the sixteen two-inch and three-inch meters included in the bid at this time, that delay would result in savings of $31,964.17. He also explained since the time of bidding, Staff determined that the existing 207 one-inch meters (included in the bid) could be replaced with 207 5/8 x 3/4 meters (rather than one-inch meters) for an additional savings of $1] ,206. The total bid savings would be $43,170.17. Council member Callies stated it was her recollection that during the discussion of the Radio Read Water Meter Project at the May 29,2007, Council meeting, Council accepted the bid and awarded the contract to Northern Water Works as presented. The decision with regard to the replacement of the larger meters would be considered at a future date; there was no formal action taken to delay the replacements. She thought the consideration of a change order for that purpose was premature. Director Brown stated there was service life left in the larger meters and those sixteen meters could be replaced in Phase II; he noted Phase II would not happen for 2 - 3 years. The City would need to accumulate revenues from water sales before that could happen. Mayor Lizee questioned if the larger meters were included in the bid because of the location of the properties the meters were on. Director Brown stated that was the reason. The meters were located in areas that were somewhat difficult to access. Lizee stated based on the original rationale for including the larger meters for replacement in the bid, she thought it would be appropriate to complete the replacement of meters as bid out. A delay in replacement would most likely result in an increase in cost. SHOREWOOD CITY COUNCIL REGULAR MEETING June 25, 2007 Page 8 of9 In response to a question from Councilmember Turgeon, Director Brown explained that approximately 60% of the larger meters were located on commercial properties and the remaining meters were located in places that were difficult to access. Councilmember Woodruff stated he would prefer to sacrifice the replacement of a few more expensive meters (the larger ones) for the benefit of replacing more of the smaller meters. Wellens moved, Woodruff seconded, Adopting RESOLUTION NO. 07-045, "A Resolution Approving a Change Order 1 for the Ratio Read Water Meter Project, City Project No. 07-04." Councilmember Callies stated she thought it was a mistake to eliminate the replacement of the sixteen larger meters as part of the project rather than reduce the number of smaller meters that would be replaced. She stated she would not vote against the motion to approve the change order as it was important to move the project forward. Motion passed 5/0. B. Accept Storm Water Pollution Protection Program (SWPPP) Report and Authorization to submit to the Minnesota Pollution Control Agency This item was removed from the consent agenda at Councilmember Woodruff's request. Councilmember Woodruff stated he had submitted a list of questions to Staff regarding the SWPPP and he had received responses from both Director Brown and Engineer Landini. He commented that the State did not expect 100% fulfillment of the plans to be submitted. He also commented that the State accepted the Public Information Hearing Regarding Storm Water Pollution Prevention Program which was held on March 12,2007, satisfied the reporting requirements for 2006. Woodruff suggested that SWPPP be discussed at a Council work session to ensure Council had a clear understanding of the SWPPP requirements. Woodruff moved, Wellens seconded, to Direct Staff to Prepare a Record of Decision Regarding the Storm Water Pollution Protection Prevention Program. Motion passed 5/0. 11. STAFF AND COUNCIL REPORTS A. Administrator & Staff None. B. Mayor & City Council With regard to the auditor's recommendations, Councilmember Wellens questioned what action Staff was going to take. Director Burton stated that during the 2008 budgeting process Council would be asked what action it would want to take on the 1993 Improvement and Refinancing Debt Service Fund. She would summarize all the recommendations made in the Financial Report and recommended actions. SHOREWOOD CITY COUNCIL REGULAR MEETING June 25, 2007 Page 9 of9 With regard to the City charging City departments for water and sewer usage, Administrator Dawson stated that would be a policy decision - was the City a customer of those systems or was there a benefit to everyone in the system and therefore it was appropriate not to charge. Councilmember Callies stated she would like to have a discussion on that topic before any action would be taken. Councilmember Woodruff stated this was more of a "bookkeeping thing"; he questioned what would the cost be to do it. Director Brown stated not all the facilities had meters, but he thought the water usage could be estimated. Brown also stated that the irrigation systems for the City parks were the larger City users of the system. He then stated that charging the City departments for water would be a way to increase revenue in the Water Fund. Mayor Lizee suggested Council could have a "high level" discussion with regard to the topic. Mayor Lizee stated Engineer Landini was coordinating a Green Roof seminar which was scheduled for June 26,2007, at the Southshore Center. Mayor Lizee reminded Council of the EFD Board Work Session to discuss the 2008 budgets. 12. ADJOURN Wellens moved, Callies seconded, Adjourning the City Council Regular Meeting of June 25, 2007, at 8:20 P.M. Motion passed 5/0. RESPECTFULLY SUBMITTED, Christine Freeman, Recorder Christine Lizee, Mayor ATTEST: