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091007 CC Reg MinCITY OF SHOREWOOD CITY COUNCIL REGULAR MEETING 5755 COUNTRY CLUB ROAD COUNCIL CHAMBERS MONDAY, SEPTEMBER 10, 2007 7:00 P.M. MINUTES 1. CONVENE CITY COUNCIL REGULAR MEETING Mayor Lizee called the meeting to order at 7:10 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 Administrator Dawson requested Item 12, Executive Session, be added to the agenda to discuss legal matters related to the City-owned properly at 5795 Country Club Road and the adjournment would become Item 13. Mayor Lizee requested that Item 10.B, Approve Feasibility Report for Amlee Road/Manitou Lane/Glen Road, be discussed after Item 9.B, Approval of 2008 LMCC Budget. Slle also requested Item 9.G, Approval of a Deer Management Contract, be moved to Item 9.I and items Item 9.G, Setting Public Hearing Date for City's Sale of the Liquor Stores, and Item 9.H, Request for Financial Investment Advice about Anticipated Rate of Return on Profits from the Sale of Liquor Operations, be added to the agenda. Wellens moved, Callies seconded, Approving the Agenda as Amended. Motion passed 5/0. 2. APPROVAL OF MINUTES A. City Council Work Session Minutes, August 20, 2007 Turgeon moved, Woodruff seconded, Approving the City Council Work Session Minutes of August 20, 2007, as presented. Motion passed 5/0. B. City Council Work Session Minutes, August 27, 2007 Woodruff moved, Turgeon seconded, Approving the City Council Work Session Minutes of August 27, 2007, as presented. Motion passed 5/0. C. City Council Regular Meeting Minutes, August 27, 2007 SHOREWOOD CITY COUNCIL REGULAR MEETING September 10, 2007 Page 2 of 12 Turgeon moved, Wellens seconded, Approving the City Council Regular Meeting Minutes of August 27, 2007, as amended in Item 9.A, Page 7, Paragraph 6, Bullet 5 change "The power supply" to "The uninterruptible power supply". Motion passed 5/0. D. City Council/Park Commission Joint Meeting Minutes, August 28, 2007 Woodruff moved, Wellens seconded, Approving the City Council and Park Commission Joint Meeting Minutes of August 28, 2007, as presented. Motion passed 5/0. 3. CONSENT AGENDA Mayor Lizee reviewed the items on the Consent Agenda. Turgeon moved, Woodruff seconded, Approving the Motions Contained on the Consent Agenda and Adopting the Resolutions Therein. A. Approval of the Verified Claims List (This was moved to Item 10.C under Engineering/Public Works) B. Staffing -Liquor Operations C. Approving ORDINANCE NO. 439, "An Ordinance Titled `License, Permit, Service charges and Miscellaneous Fees". 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 Chair Davis reported on matters considered and actions taken at the September 5, 2007, Park Commission meeting (as detailed in the minutes of that meeting). Councilmember Callies stated she appreciated the opportunity the Council had to meet with the Park Commission on August 28, 2007. At that meeting there was an item discussed that she thought Council should consider in the future. The Commission had suggested because of the proximity of City Hall, Badger Park, and the City-owned house, that area should be viewed as the City's campus; therefore, it thought Badger Park should be considered as part of the City's Comprehensive Plan. Callies stated the City had a unique opportunity to consider environmentally friendly and green projects as part of the SHOREWOOD CITY COUNCIL REGULAR MEETING September 10, 2007 Page 3 of 12 proposed City Hall project and possible improvements to Badger Park and other City parks. She thought the Commission had demonstrated leadership on that issue. As part of the City Hall project she suggested Council consider how City Hall should fit within the entire campus and the Southshore Center and it should consider green construction as part of that project. It was important the City demonstrate the type of construction it would like to have happen within the City limits. Although the City was not a growing city, it was a quality City. Residents lived in the City because the City provided quality services, had quality staff, and had many volunteers that wanted to make a difference. She thanked the Commission for being on the forefront of that issue. 8. PLANNING Chair Schmitt reported on matters considered and actions taken at the September 4, 2007, Planning Commission meeting (as detailed in the minutes of that meeting). 9. GENERAL/NEW BUSINESS A. Approval of Amendments to LMCC Joint Powers Agreement Administrator Dawson stated Sally Koenecke, Lake Minnetonka Communications Commission (LMCC) Executive Director, and Patrick Hodapp, one of the City's two representatives on the LMCC Board, were present at the meeting to review the proposed amendments to the LMCC Joint Powers Agreement (JPA). Ms. Koenecke stated there were two proposed changes to the JPA. The LMCC had changed over the last ten years. The first change was to the voting quorum: what constituted a quorum changed from seven members to commissioners from a majority of member cities. The second change was to the annual budget process: the date by which the budget had to be formulated changed from August 15 to August 31; the date the budget must be adopted changed from at the Commission's annual meeting in September to September 30; and the budget was effective only "if approved by a majority of the members within 30 days," was changed to "unless rejected by a majority of the members within. 45 days after its receipt by them." She commented that some cities did not act on the budget. Councilmember Woodruff commented the proposed changes had been discussed at two full Commission meetings. He thought the proposed changes made sense. Woodruff moved, Callies seconded, approving the proposed amendments to the Lake Minnetonka Communication Commission Joint Powers Agreement. Councilmember Wellens expressed concern about the automatic nature of the approval of a proposed budget. He stated he had not seen any data showing the budget process had failed because member cities had not acted on the budget in a timely manner. Mr. Hodapp stated it took considerable time and effort by Ms. Koenecke to prod the cities to act on the budget. Hodapp stated in the past it was late in the year and the budget had not been approved. Wellens stated this was similar to an automatic tax increase - if it was not rejected it was approved. Councilmember Turgeon stated the LMCC budget was derived by franchise fees and PEG (public, educational, and governmental) fees, not a tax levy. Motion passed 5/0. B. Approval of the 2008 LMCC Budget SHOREWOOD CITY COUNCIL REGULAR MEETING September 10, 2007 Page 4 of 12 Ms. Koenecke stated the 2008 LMCC budget had been drafted by the LMCC Budget Committee, of which Mr. Hodapp was a member. She commented that Mr. Hodapp was also the treasurer. She explained the budget was comprised of three separate funds -the Franchise Administration Fund, the Studio/Access Production Fund, and the Capital Improvement Fund. Each year the Capital Improvement Fund Budget was prepared by the LMCC Operations Manager and its Programming Manager; it reflected the needs identified in the LMCC's five-year plan. She noted the $17,000 in funds budgeted in the 2007 Capital Budget for an upgrade to the LMCC local area network were carried forward to 2008; the LMCC chose to delay the upgrade because it did not want to purchase technology that would be obsolete in a few years. The 2008 Capital Improvement Fund Budget also reflected funds to replace equipment in the production control rooms due to obsolescence of videotape technology. Mr. Hodapp stated there were no major changes reflected in the expense side of the budget from the 2007 approved budget. The 2008 budgeted staffing was the same as 2007. With regard to the Capital Improvement Fund Budget, he stated the budget reflected the replacement of personal computers in groups as it was not always prudent to replace one persona] computer at a time. He noted in 2008 the LMCC would continue to use its existing computers. Councilmember Turgeon stated it would be helpful to her if the variance between the proposed budget amount and the previous year's adopted budget amount were identified on the budget report. She questioned what caused a nominal increase in the budget for web streaming costs as her service had not changed. Mr. Hodapp stated the increase in costs was a result of the projected increase in the amount of data that was transferred; there had been an increase in the number of people viewing meetings on their computers. Callies moved, Woodruff seconded, Approving the Lake Minnetonka Communications Commission 2008 Budget as presented. Motion passed 5/0. C. Approval of the 2008 Proposed Budget and Tax Levy This item was discussed after Item 10.B on the agenda. Finance Director Burton explained City Staff had prepared the 2008 Proposed General Fund Operating Budget for review and approval this evening. The budget was the result of Council and Staff work- sessions on June 25, August 6, August 20, and August 27, 2007. During the work sessions, Council and Staff reviewed all aspects of the preliminary 2008 budget; Council also discussed implementing a General Fund Reserve Policy in conjunction with using some General Fund reserves for capital improvements. Burton then reviewed the highlights of the budget including the lack of levy limits imposed by State Legislature. The proposed tax levy of $4,806,995 was a 9.34 percent increase from the 2006 tax levy. Revenues from fees, licenses, and permits were expected to remain stable; building permit revenue was expected to decline. The budget proposed the use of $100,000 in General Fund reserves (in addition to tax and fee revenue); the use of reserves would result in an anticipated General Fund balance of $3.18 million (approximately 57 percent of 2008 expenditures and transfers). Transfers to Capital improvement funds were programmed at $970,000 for 2008 (an increase of $300,000 from 2007); the increase was to the Street Reconstruction fund to provide for sealcoating and street "slurry" projects. Burton explained the key 2007 General fund expenditures, not including capital expenditures, reflected an approximate 1.8 percent increase from 2007. The key expenditures were: the remaining construction SHOREWOOD CITY COUNCIL REGULAR MEETING September 10, 2007 Page 5 of 12 costs of $170,000 for a Public Works building addition; salary and insurance adjustments reviewed by Council which included $20,000 for employee merit increases; and interim funding for Friends of the Southshore Center ($21,300). Ahalf--time position in the Finance Department was removed from the 2008 budget. She noted the City's tax base would increase by approximately 9 percent for Pay2008. Police and fires services totaled approximately $1.734 million in 2008. Burton stated staff recommended the Truth-In-Taxation process be followed as usual, using the timetable and procedures set in place for the past few years. The State Legislature had designated Monday, December 3, 2007, as the suggested dated the Truth-In-Taxation public hearing be held. If necessary, a continuation hearing would be held on December 10, 2007. The City Council would approve and adopt the final budget on December 10, 2007. Burton then stated Staff recommended Council approve the resolution "Setting the 2008 Proposed General Fund Budget and the Proposed 2007 Property Tax Levy, Collectible in 2008". Councilmember Woodruff stated the Council had spent a great deal of time discussing the proposed budget. He then stated there was a significant increase in funding for street sealcoating and "slurry" projects (an additional amount of $300,000 from General Fund reserves) and that accounted for a significant portion of the proposed tax levy increase. The additional funds would allow for a more rapid rate of street improvements, which could include the use of a new emulsified asphalt (i.e., slurry) technology that was more expensive but had a much longer life than traditional sealcoating. Woodruff reiterated Director Burton's statement that the proposed increase could be reduced prior to adopting the 2008 General Fund Budget in December, but it could not be increased. He then stated Council would have future budget discussions with regard to the Enterprise Funds, and he was hopeful the proposed General Fund tax levy could be reduced. Turgeon moved, Wellens seconded, Adopting RESOLUTION NO. 07-058, "A Resolution Setting the 2008 Proposed General Fund Budget and Approving the Proposed 2007 Property Tax Levy Collectible in 2008." Motion passed 5/0. D. Setting the Truth-in-Taxation Public Hearing Dates Administrator Dawson stated a resolution had been prepared setting the date for the Truth-In-Taxation public hearing for December 3, 2007, and December 10, 2007, as the date to continue the hearing if necessary. Woodruff moved, Turgeon seconded, Adopting RESOLUTION NO. 07-059, "A Resolution Setting the Truth-In-Taxation Public Hearing Dates on the Proposed 2008 Budgets and the 2008 Property Tax Levy." Motion passed 5/0. E. General Fund Balance Policy Administrator Dawson stated at its August 6, 2007, work session Council reviewed a draft of a policy regarding the undesignated balance in the General Fund. There had been general agreement with the policy by Council. The policy was used during Council deliberations on the proposed 2008 General Fund Budget. He noted the policy was presented to Council for formal adoption at this meeting. SHOREWOOD CITY COUNCIL REGULAR MEETING September 10, 2007 Page 6 of 12 Wellens moved, Woodruff seconded, adopting the policy regarding the General Fund balance reserves as presented. Councilmember Woodruff suggested that in the future Council should consider an amendment to the policy to add more than two percentage points annually to the undesignated balance if it were to fall below 50 percent. Director Burton stated the policy could be approved with the suggested amendment included. Woodruff suggested the amendment to the policy would be if the undesignated balance fell below 50 percent Council would take emergency action to restore the balance to at a minimum 50 percent. Without objection of the seconder, the maker of the motion accepted a friendly amendment to the motion to include a change to the policy that would require Council to take immediate action to restore the undesignated balance to a minimum of 50 percent should the balance fall below 50 percent. Motion passed 5/0. F. Selection of Business Broker for Sale of Liquor Operations Administrator Dawson stated at its August 6, 2007, special meeting Council directed Staff to begin the process to sell the City's liquor operations. Staff had prepared a request for proposals (RFP) for business brokerage services, and sent them to firms which were recommended or had requested to receive the RFP. Five brokers had responded to the RFP. He commented that all five firms had significant experience in liquor store transactions or with the liquor industry. Dawson explained Staff had reviewed all five of the proposals and met with representatives of each of the brokers that had responded. Staff thought the best proposals and interviews were made by Darrell Ansel.; Hospitality Services, Corp.; and Sunbelt Business Brokers. He then stated Staff suggested Hospitality Services, Corp., be retained as it had the best combination of experience, knowledge of liquor store transactions and the unique logistics for the separate sales of the City's liquor operations, and compensation arrangement. He noted that firm had stated its commission would be less than proposed because there would be multiple properties listed with the City. He commented. that firm would be able to begin its work immediately. Dawson then stated Staff recommended Council authorize execution of a six-month exclusive listing agreement with Hospitality Services, Corp., for the sale of the City's off-sale liquor stores. Councilmember Turgeon stated based on the rating system used, it appeared Opportunities in Business had some ratings that were higher than those for Hospitality Services, Corp. Administrator Dawson stated there was a certain amount of judgment that was involved with all five firms. He then stated Hospitality Services, Corp., had thoroughly researched the City's liquor business; that firm suggested the shortest listing period; and the firm had confidence in its ability to deliver. Staff thought that after assessing the five firms, it felt most comfortable that Hospitality Services, Corp., would do the best job. Councilmember Turgeon stated Hospitality Services, Corp., charged. a commission of 10 percent typically yet Opportunities in Business charged between 6 - 8 percent. Hospitality Services, Corp., stated it would take 2 - 3 months to sell. the properties; Opportunities in Business stated it would take a minimum of 60 days to sell. Hospitality Services, Corp., had a staff of three people; Opportunities in Business had a staff of ten. Administrator Dawson stated the time it would take to close on the sale was not binding; Staff had asked the firms to provide their expectations regarding that timeframe. SHOREWOOD CITY COUNCIL REGULAR MEETING September 10, 2007 Page 7 of 12 In response to a question from Councilmember Callies, Administrator Dawson explained that he and Director Burton had each interviewed the five firms. He commented that the difference between the three-star and four-star ratings was negligible. Burton stated the summary of proposals should have included a rating for each firms' use of technology. She then stated Hospitality Services, Corp., had done its homework; she and Administrator Dawson thought that firm had a sound grasp of the market. Burton commented that each firm had different areas of expertise. She noted Hospitality Services had indicated it would reduce its commission if the purchaser would be a contact the City had provided. In response to a question from Councilmember Woodruff, Administrator Dawson stated each of the firms had provided an extensive list of transactions they had been involved with. Mayor Lizee commented that all the firms were licensed brokers. Dawson stated Hospitality Services, Corp., was excited about the opportunity. Wellens moved, Woodruff seconded, authorizing execution of a six-month exclusive listing agreement with Hospitality Services, Corp., for the sale of the City's off-sale liquor stores. Motion passed 5/0. Councilmember Callies stated that based on the information provided in RFPs, the lease-term for the building was a factor in selling the operation and one of the issues would be the negotiation of a longer- term lease. She commented that the City's Liquor Operations Manager had advocated and negotiated a longer-term lease for the Waterford liquor store building which Council rejected. G. Setting Date for a Public Hearing Regarding the Sale of the City's Liquor Operations Mayor Lizee stated it was brought to her attention that when a city planned to dispose of real property a public hearing was necessary. Associate Attorney Mayeron stated to divest of a lease-hold interest as tenant required a public hearing; if the city were to remain the tenant of the properly a public hearing would not be required. Councilmember Woodruff questioned if it would be more appropriate to hold the public hearing once the City had a sales agreement with a buyer. Councilmember Callies stated the agreement could not be finalized until a public hearing was held. Mayor Lizee stated the City's liquor operations were an asset to the City. She commented that at a July 30, 2007, Liquor Committee meeting, the Committee agreed a forum should be held where public comment could be heard regarding the potential sale of the operations. At its August 6, 2007, special meeting Council made a decision that it was not necessary to involve the public in that decision. Councilmember Woodruff stated it was his recollection that at the August 6, 2007, special meeting he had stated a public meeting could still be held. Woodruff stated the topic of the sale of the City's liquor operations and the financial situation regarding the businesses had been publicized in multiple local papers. He stated he would like to know what would be discussed at a public hearing. Councilmember Turgeon stated Associated Attorney Mayeron had previously discussed the need for a public hearing if the lease-hold interest were to be disposed of, and Mayor Lizee talked about the sale of the operations; Turgeon stated those were two different things. Lizee stated the topic were the leases for the liquor operations buildings; therefore, a public hearing was necessary. Turgeon stated until a decision had been made as to whether or not the buildings would be sublet, it was premature to have a public SHOREWOOD CITY COUNCIL REGULAR MEETING September 10, 2007 Page 8 of 12 hearing. Turgeon also stated if the liquor operations were not sold before the leases expired, there would not be a need for a public hearing. Associate Attorney Mayeron stated if the City were to enter into asub-lease agreement for the buildings, it would be considered a disposition of real property and would require a public hearing. Councilmember Callies stated the buildings leases were linked to the City's liquor operations. When a city wanted to sell some of its real property, the public should be made aware that the city was divesting itself of an asset. She then stated from her vantage point it was not in the spirit of wanting to hear public comment, to wait to hold a public hearing until a sale agreement had been reached. She also stated she would be in support of holding a public hearing. Councilmember Woodruff stated he wanted to review a proposed agenda for the public hearing before a date was set for the public hearing. Associate Attorney Mayeron stated it was not necessary to have an agenda. Woodruff stated he did not want to avoid a public hearing nor did he want to wait until the very end to hold one; he wanted to ensure there was something meaningful to discuss at the public hearing. Councilmember Turgeon stated Council had been discussing the possible sale of the City's liquor operations for seven months. She stated she had heard from one resident who stated they liked the convenience of the Waterford liquor store. She had phone calls from four residents who indicated the City should get out of the liquor operations business. She stated she was not opposed to holding a public hearing provided there was an agenda. She commented a public hearing was not held regarding the decision on the City Hall project. Councilmember Callies suggested a public hearing be held for the City Hall project; she thought a hearing would have to be held because it was real property interest. Callies stated the reason to hold a public hearing was to hear public comment. Woodruff moved, Turgeon seconded setting the date for a public hearing on the sale of the City's liquor operations for which there would have no agenda and no presentations would be made by Staff or Council. Councilmember Wellens commented the City did not have a consistent policy for when a public hearing was held. Administrator Dawson stated that during more detailed discussions regarding the sale of the liquor operations, the City's attorney advised him that State Statute did not require a public hearing be held to sell the liquor operations; State Statute required a City to hold a public hearing if it was considering divesting itself of a real property interest (e.g., vacating a drainage and utility easement or divesting itself of a lease prior to it expiring). Councilmember Callies suggested the motion be withdrawn as the City had no choice about holding a public hearing if were to divest itself of the lease. She stated to hold a public hearing only if there was no agenda and no presentations by Staff or Council would unduly restrict the hearing. Councilmember Woodruff stated he would support holding a public hearing with a presentation by Staff provided he knew what the presentation would consist of. He then stated the lease may be discussed. He also stated he would be willing to amend his motion to say the City was going to potentially divest itself of its leases. Callies stated dates for other public hearings had been set without having similar information in advance. Administrator Dawson stated a public hearing could be scheduled for October 22, 2007. SHOREWOOD CITY COUNCIL REGULAR MEETING September 10, 2007 Page 9 of 12 Motion passed 5/0. In response to a question, Councilmember Woodruff clarified it was his understanding that the motion was to hold a public hearing on the sale of the City's liquor operations on October 22, 2007, and there would be no agenda for the hearing and no presentation by Staff or Council at the hearing. Councilmember Callies stated she did not think that was the motion under consideration. She did not want to restrict what could be discussed at a public hearing. Councilmember Turgeon stated she wanted clarification regarding the proposed subject matter for the hearing; if the purpose was to take public comment she was in support of a public hearing. Mayor Lizee stated the facts should be presented at the public hearing and public comment should be taken. Administrator Dawson proposed the public hearing would include a presentation by Staff explaining the reason a public hearing was necessary, and what the issue was (in this case it was the City had lease-hold interests through October 2008 and the City was considering the possibility of terminating the lease-hold interests prior to October 2008). Councilmember Woodruff stated he would accept that. Dawson stated it would be good to take public comment, and after hearing public comment take action stating Council had heard the public's concerns and it had authorized actions to be taken subsequent to that. Woodruff moved, Turgeon seconded, withdrawing the previous motion and setting October 22, 2007, as the date for a Public Hearing on the City's potential divesture of lease-hold interests which would be done in conjunction with the sale of the City's liquor operations. Motion passed 5/0. H. Request for Financial Investment Advice about Anticipated Rate of Return on Profits from the Sale of Liquor Operations Mayor Lizee stated she wanted to request financial investment information about the anticipated rate of return on the profits from the sale of the City's liquor operations. She then stated at previous Council meetings there had been comment that the profits from the sale could be invested and would provide a rate of return that would be similar to the funds that the City received from revenues from the operations. She suggested Staff provide the information in the form of a memorandum to Council. Councilmember Woodruff stated the Liquor Operations Enterprise fund contained substantial reserves and suggested the reserves be included in the analysis. Councilmember Callies stated she understood the request was to clarify that the investment potential from the proceeds from the sale of the City's liquor operations would be similar to the funds the City received on a yearly basis from the revenues from liquor operations. Administrator Dawson stated the memorandum would be prepared by Staff and the information would be provided to Council for its first meeting in October. There was Council consensus to direct Staff to prepare the memorandum. I. Approval of a Deer Management Contract Administrator Dawson stated at its August 27, 2007, work session Council had a presentation by a representative from Metro Bowhunters Resource Base (MBRB) regarding deer management; it also discussed the possibility of contracting with that organization. At that work session Council directed Staff to prepare a contract with MBRB. He stated the City Attorney had stated the form of the agreement SHOREWOOD CITY COUNCIL REGULAR MEETING September 10, 2007 Page 10 of 12 was acceptable and had suggested Council approve the agreement contingent on the dates being filled in on the draft agreement. In response to a question from Councilmember Turgeon, Administrator Dawson stated private property owners who had property of a minimum size could contact the City regarding the possibility of having a deer management effort conducted on their property; the City would forward the appropriate requests to MBRB. Wellens moved, Woodruff seconded, approving the agreement with Metro Bowhunters Resource Base (MBRB) for deer management services subject to the dates being identified in the draft agreement. Motion passed 5/0. 10. ENGINEERING/PUBLIC WORKS A. Accept Proposal for Cleaning of the Minnewashta Water Tower Director Brown stated the City owned and maintained a 500,000 gallon water tower (known as the Minnewashta Water Tower) located on a parcel of land addressed as 26350 Smithtown Road. During budget work sessions conducted over the past few months, Council directed Staff to seek quotations for power washing the Tower. Staff also asked the contractors to quote pricing for painting the "bottom structure" of the Tower as part of their bid. He commented that vandals had marked the bottom cone portion of the pedestal and painted the overflow vent pipe. He stated the City had received two bids: one from Water Tower Clean and Quote, Inc. for a bid amount of $5,900 and one from TMI Coatings for a bid amount of $9,900. He stated Staff recommended the proposal by Water Tower Clean and Coat, Inc., for washing the Tower and painting the "bottom structure". In response to a question from Councilmember Callies, Director Brown stated TMI Coat, Inc. may submit a bid for the coating portion of the East Water Tower project. Staff had received an update to the plans and specification for the East Water Tower project and that could be presented to Council at its next meeting. It was anticipated the project would be put out for bid in January or February of 2008. With regard to a question from Councilmember Woodruff, Director Brown stated a fence around the Minnewashta Water Tower may keep children away from the Tower (although it may attract them), but it would probably not keep terrorists away from the Tower. Turgeon moved, Woodruff seconded, accepting the proposal provided by Water Tower Clean and Coat, Inc., for exterior washing of the Minnewashta Water Tower and security upgrades not to exceed $6,700. Motion passed 5/0. B. Approve Feasibility Report and set Public Hearing Date for Amlee Road, Manitou Lane, Glen Road Street Reconstruction Project, City Project 07-O1 This item was discussed before Item 9.C on the agenda. Administrator Dawson stated WSB and Associates had prepared the Feasibility Report for the Amlee Road, Manitou Lane, Glen Road Reconstruction Project. The Report had been. revised to reflect the Council's August 13, 2007, discussion regarding the width of the driving lanes and the installation of watermain throughout the project area. He stated the revised Feasibility Report had been discussed at the City Council work session immediately preceding this meeting; at this meeting Council could take formal SHOREWOOD CITY COUNCIL REGULAR MEETING September 10, 2007 Page 11 of 12 action regarding the scope of the project. The Report proposed special assessments be used as a source of revenue for the watermain installation; therefore, a public hearing must be held prior to ordering the improvement project. If adopted, the resolution would set October 8, 2007, as the public hearing date. Woodruff moved, Callies seconded, Adopting RESOLUTION NO. 07-060, "A Resolution Approving Feasibility Report on Proposed Improvements and Setting Public Hearing Date, City Project 07-O1 Amlee Road, Manitou Lane, Glen Road Reclamation Project." Motion passed 5/0. The discussion returned to Item 9.C on the agenda. C. Verified Claims List This was removed from the Consent Agenda at Councilmember Woodruff's request. Councilmember Woodruff explained he asked this item be removed from the consent agenda because there were 9 - 10 items on the verified claims list relating to expenses for the City-owned house. He questioned if they reflected the majority of expenses. Director Brown stated he thought that was the majority; he noted there were bees residing in the air conditioner and a small leak in the roof and those problems had to be resolved. Woodruff moved, Turgeon seconded, approving the verified claims list as presented. Motion passed 5/0. 11. STAFF AND COUNCIL REPORTS A. Administrator & Staff Administrator Dawson stated there had been a meeting of the Southshore Center working group on September 7, 2007. The comments at that meeting by representatives of the member cities councils indicated there had been agreement by four cities that the interim funding should not be contingent on changes to the Shorewood Option in the Cooperative Agreement. It was expected that Deepllaven would reconsider its position at its Council meeting on September 17, 2007. He stated he anticipated he would have the final interim funding agreement available for Council to consider at its September 24, 2007, meeting. Administrator Dawson stated Staff was attempting to coordinate an executive session for September 24, 2007, at 6:00 P.M. He noted that he would not be at the September 24, 2007, meetings. In response to a question from Councilmember Woodruff, Administrator Dawson stated it was his understanding that Senior Community Services had planned to continue services through the end of the year based on the feedback it had received regarding interim funding. In response to a request from Councilmember Woodruff, Director Brown provided an update on the emulsified asphalt pilot projects. He reviewed various methods that were used to apply the product. He stated after initial application the surface would smooth out. He explained that the road surface had to be patched before the product was put down. In response to a question from Councilmember Turgeon, Director Brown stated the Minnehaha Creek Watershed District was responsible for ensuring maintenance was done by the Kestrel Group to the SHOREWOOD CITY COUNCIL REGULAR MEETING September 10, 2007 Page 12 of 12 Gideon Glen wetland area for a total of two years. Mayor Lizee commented that the Kestrel Group had made a presentation to Council in October 2006 regarding maintenance of the wetland; another presentation would be made this year. B. Mayor & City Council Mayor Lizee stated the South Lake League of Women Voters would host an issues meeting at 7:30 P.M. on September 13, 2007, at City Hall. The mayors from Excelsior, Deephaven, Greenwood, Shorewood, and Tonka Bay had been invited to attend to inform the public about local issues. Mayor Lizee stated she planned to attend a Municipal Clerk and Finance Officer meeting scheduled on September 14, 2007. Mayor Lizee stated the following topics were discussed at the second coffee with the mayor session: the sale of the City's liquor operations, pedestrian safety at the intersection of Country Club Road and Yellowstone Trail, the street lighting in neighborhoods, interest in a stop light at Edgewood Drive and Grant Lorenz Road, deer management, and the Amlee Road/Manitou Lane/Glen Road Road Reclamation Project. Mayor Lizee recessed the meeting to an Executive Meeting at 8:55 P.M. 12. EXECUTIVE SESSION Mayor Lizee began the executive session at 9:00 P.M. All Councilmembers were present, as were Administrator Dawson, Associate Attorney Mayeron, and Director of Public Works Brown. The purpose of the meeting was for confidential attorney-client communications regarding the City's suit against Livingwaters Church/Ascending Praise Church. The Executive Session was concluded at 9:22 P.M. 13. RECONVENE TO REGULAR CITY COUNCIL MEETING Mayor Lizee reconvened the regular meeting at 9:23 p.m. She reported that the Council had given direction to the City Attorney to pursue discussions with. the defendant consistent with Council direction given in the executive session. 14. ADJOURN Woodruff moved, Turgeon seconded, Adjourning the City Council Regular Meeting of September 10, 2007, at 9:24 P.M. Motion passed 5/0. RESPECTFULLY SUBMITTED, Christine Freeman, Recorder ATTEST: ~. G~ ~ l~ Christine) UL`i~z'ee, Mayor Craig ~b . bawson, pity Administrator/Clerk ff. 1~