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092407 CC Reg MinCITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD CITY COUNCIL REGULAR MEETING COUNCIL CHAMBERS MONDAY, SEPTEMBER 24, 2007 7:00 P.M. MINUTES 1. CONVENE CITY COUNCIL REGULAR MEETING Mayor Lizee called the meeting to order at 7:02 P.M. A. Roll Call Present. Mayor Lizee; Councilmembers Callies, Turgeon, Wellens and Woodruff; Attorney Keane; Acting Administrator/Director of Public Works Brown; Director Nielsen; and Engineer Landini Absent: Administrator Dawson B. Review Agenda Turgeon moved, Woodruff seconded, Approving the Agenda as presented. Motion passed 5/0. 2. APPROVAL OF MINUTES A. City Council Work Session Minutes, September 10, 2007 Turgeon moved, Wellens seconded, Approving the City Council Work Session Minutes of September 10, 2007, as presented. Motion passed 5/0. B. City Council Regular Meeting Minutes, September 10, 2007 Woodruff moved, Callies seconded, Approving the City Council Regular Meeting Minutes of September 10, 2007, as presented. Motion passed 5/0. 3. CONSENT AGENDA Mayor Lizee reviewed the items on the Consent Agenda. Wellens moved, Turgeon seconded, Approving the Motions Contained on the Consent Agenda and Adopting the Resolutions Therein. A. Approval of the Verified Claims List B. Staffing - No action required C. Adopting RESOLUTION NO. 07-061, "A Resolution Approving a Temporary Gambling License for Friends of the Southshore Center." SHOREWOOD CITY COUNCIL REGULAR MEETING September 24, 2007 Page 2 of 14 D. Adopting RESOLUTION NO. 07-062, "A Resolution Accepting the Badger Field Football Field Lighting Project and Authorizing Final Payment, City Project 06- 07." Motion passed 5/0. 4. MATTERS FROM THE FLOOR There were no matters from the floor presented this evening. 5. REPORTS AND PRESENTATIONS A. Report on Minnetonka Community Education (MCE) activities by Tim Litlin, Executive Director This item was discussed after Item 8.B on the agenda. Minnetonka Community Education (MCE) Executive Director Litfin highlighted MCE activities, as detailed in the report distributed to Council. - The MCE budget for 2007/2008 was $5,992,000; its undesignated fund balance was 16 percent which approximated 2 - 3 months of reserves. - MCE had a staff of 320, the majority of them being part-time. - A community-wide needs assessment was conducted in the fall of 2006. The assessment was conducted by Decisions Resources Ltd. • Ten percent of the respondents rated the MCE program as excellent and another 60 percent rated it as good; the combined ratings of 70 percent positive response was the highest in the metro area. • During the past two years, 43 percent of the Minnetonka School Districts' residents participated in MCE programs; the highest participation rate in the metro area. • Approximately 70 percent of the 2006 - 2007 MCE budget was dedicated to youth activities, 11 percent for adult activities, and 20 percent for early childhood family education (ECFE) activities. The demographics of the district consisted of 55 percent adults, 32 percent youth, and 13 percent in the ECFE (0-4 years old) age group. - Regarding MCE revenues, approximately 84 percent were from fees and the remainder from tax dollars. - A three-year community education strategic plan was implemented for 2007 - 2008. - A marketing audit was completed and the results would be available in October 2007. - The Deephaven Education Center (DCE) had been partially remodeled. - Close to 50 percent of program participants now registered online. - Participation in programs for 2006 - 2007 was approximately 1.7,500, an increase of approximately 20 percent over 2004 - 2005. - Upcoming activities included a School District referendum, an improved web site, a new DCE monument sign, and additional remodeling to DEC. - MCE's greatest need was more space. SHOREWOOD CITY COUNCIL REGULAR MEETING September 24, 2007 Page 3 of 14 Mayor Lizee stated she appreciated MR. Litfin's enthusiasm for and commitment to his job. Councilmember Wellens questioned if the MCE could not become independent from the Minnetonka School District being the MCE's revenues came primarily from fees (the MCE reported to the Minnetonka School District Superintendent). Mr. Litfin stated community education organizations were school district entities. Litfin explained when community education started in the State in 1969 it was funded by the State. He then explained the community education general levy was $5.42 for each person in the school district each year. There was also an ECFE levy that was dedicated to EFCE programs, an after school enrichment levy which was approximately $.91 per person, and a youth service levy. The general levy could be used for any need. In response to a question from Councilmember Callies, Mr. Litfin clarified that the staff of 320 did not include the specific program teachers. The discussion returned to Item 9.A on the agenda. 6. PUBLIC HEARING None. 7. PARKS A. Request for Funding for 2"~ Annual Arctic Fever Event on January 19, 2008 Director Brown explained at an August 28, 2007, joint City Council and Park Commission meeting the need for funding for the Arctic Fever event was discussed. At its September 5, 2007, meeting the Park Commission agreed to put forth a funding request for $3,000 to the Council. Because the amount had not been dedicated within the Park Budget for 2008, the amount would have to be funded from the General Fund. He explained no staff time was included in the budget for the event. The cost for the items currently planned would approximate $7,300, not including inkind items. The projected costs for fireworks were $4,500; should there be a shortage in funding fireworks would likely be the first activity to be cut. The funding was necessary to ensure contracts for the primary event vendors could be executed; once some of the event vendors were secured it became easier to attract other vendors. The contracts should be executed over the next two months. Councilmember Turgeon stated she would support at least $3,000 in funding, and possibly more. Councilmember Woodruff stated he would support providing $3,000 in funding for the Arctic Fever event. He suggested the $3,000 be paid out of the 2007 General Fund budget if possible. Director Brown stated he would let Council know if there was a problem with funding the event out of the 2007 General Fund Budget. Councilmember Callies stated she would support $3,000 in funding for the event, out of either the 2007 or 2008 General Fund Budget. She then stated she would prefer the funding not be used for fireworks; there were many community events that already included fireworks. She would prefer the City focus on enhancing the other events. Councilmember Wellens stated he agreed with Councilmember Callies. Wellens moved, Turgeon seconded, approving funding in the amount of $3,000 for the 2008 Arctic Fever event and the funds would come out of the General Fund Budget. Motion passed 5/0. SHOREWOOD CITY COUNCIL REGULAR MEETING September 24, 2007 Page 4 of 14 8. PLANNING -Report by Representative Planning Commission Chair Schmitt stated there had not been a Planning Commission meeting since the last Council Meeting. A. Conditional Use Permit Revision Proposer: City of Shorewood Location: Upper Minnetonka Yacht Club, 4580 Enchanted Point Acting Administrator Brown stated the situation with the Upper Minnetonka Yacht Club (UMYC) was discussed at a Council executive session held prior to this meeting. Director Nielsen stated the UMYC (formerly known as the Upper Lake Minnetonka Yacht Club) was located at 4580 Enchanted Point. He explained the UMYC currently exists as a nonconforming use in the R-1C/S, Single-Family Residential/Shoreland zoning district. The City initially granted the club a "special use permit" as a sailing yacht club in 1969. That approval allowed the club to dock or moor up to 30 sailboats and two powerboats. The City amended its Zoning Ordinance in 1.973 to allow "yacht clubs" as conditional uses in residential zoning districts. In 1977 the UMYC applied for and received a conditional use permit, which was renewed in 1978. The resolution adopted in 1.978 inadvertently omitted the reference to "sailboats". In 2005, the City received resident complaints that the UMYC had begun renting out slips for powerboats. The City cited the Club for expanding or intensifying a nonconforming use, and commenced enforcement action in 2005 and again in 2006. The action was dismissed in District Court because the most recent C.U.P. resolution did not reference "sailboats". The City has since proposed correcting the 1978 C.U.P. to accurately reflect the UMYC's application and the City record. A public hearing was held by the Planning Commission on August 7, 2007, and continued to September 4, 2007, to consider a revised resolution clarifying Resolution No. 30-78 which granted a Conditional Use Permit (CUP) to the Upper Minnetonka Yacht Club (UMYC). Nielsen stated based on information provided by Staff and testimony taken at the public hearing, the Planning Commission recommended approval of a revised resolution clarifying Resolution No. 30-78, and patterned after the 1969 approval, limiting the use of the facility to 30 sailboats and two powerboats for the use of the Club. Nielsen then stated that Staff was looking for direction from Council to prepare a draft resolution with findings of fact clarifying Resolution No. 30-78. Councilmember Woodruff stated he would recuse himself from this discussion; although he was not a member of the UMYC, he did sail on a member's boat and he thought that could be somewhat of a conflict of interest. He then stated he would be willing to respond to questions if asked. Mayor Lizee stated Council would take public comment this evening. She asked that people keep their comments to three minutes or less because of the number of people present. She stated that Council had reviewed public testimony taken at the previous public hearing. John Barlow 3546 Enchanted Lane Mound and Vice Commodore of the UMYC, stated he had been a member of the UMYC since 1975. He never recollected a time when he was a member that there wasn't a SHOREWOOD CITY COUNCIL REGULAR MEETING September 24, 2007 Page 5 of 14 powerboat at the UMYC. The UMYC's records back to 1997 had been reviewed, and the records indicated that the UMYC had generated income from renting slips for powerboat use. He commented that this was a very difficult issue for the UMYC and the property owners. He stated the draft minutes of the public hearing held during the September 4, 2007, Planning Commission meeting included he had made a statement "... it was the worst time in the UMYC's history"; he clarified it was not the worst time for the UMYC, it was a black mark on the history of the UMYC because it was an internal dispute. He then made the following three points. First, the UMYC's C.U.P. was legal; it had been litigated in court and dismissed. Second, the City was trying to rewrite history; the UMYC had agreed to accept a reduction in the number of slips it could have from 42 to 30 in order to have "that language taken out"; the UMYC also agreed not to build a building. And last, from his vantage point the City did not want the UMYC in a residential area; the issue at hand had created a hostile environment, and it was discouraging to consider this situation would continue through another litigation process. Dick Caswell, 205 Barry Avenue South, Wayzata, stated he rented a slip from the UMYC for powerboat use. He had been a member of the UMYC prior to renting a slip for his powerboat. His powerboat was an 8-year-old 18-foot pontoon boat. He stated he had a 100-ton US Coast Guard charter captain's license. He stated he had never observed the types of people on the UMYC properly that property owners had described at the public hearing. He had never heard load music when he was on the property, and he never observed any difficulty with any of the UMYC's neighbors. Carolyn Anderson, 29640 W. 62°d Street, stated she and her husband had been a member of the UMYC for a few years. She commented they had also been a member of the Wayzata Yacht Club for many years, and they were avid sailors. She stated when they were looking for a slip on Lake Minnetonka the UMYC indicated they had a place for them. She then stated usually when they were at the UMYC there was no one there; there were a maximum of four cars there at one time. She also stated she never observed any partying on the property, with the exception of the owners of the pontoon boat having a quiet party one time. Frank Ahrens 4673 Island View Drive Mound, stated he was the treasurer of the UMYC from 1999 - 2002. From 1999 - 2001 the UMYC's records indicated that three slips had been rented for powerboat use each of those years. Brant Nelson 5227 Bartlet Boulevard Mound, stated he was the current treasurer for the UMYC. He then stated the UMYC's records indicated that three slips were rented for powerboat use in 2003, and four in 2004. Jack Strothman with the law firm of Lindquist and Vennum PLLP, stated he was the UMYC's principal attorney on this matter and had previously provided the City with a great deal of information relating to this issue. He then stated he was present this evening to answer any questions Council may have. Mayor Lizee stated Council had received all of his documents and they had been entered into the public record. The Council also had been provided with. the minutes of the related Planning Commission meetings when the public hearing was held and other information related to the history of the UMYC. James Thibault 4565 Enchanted Point, stated his property was located across from the UMYC. He explained that he and his wife had provided the City with various written documents stating their support for a revised resolution clarifying Resolution No. 30-78 such that the word "sail" would be added to the front of the word "boat". He stated the UMYC was always allowed the dockage of two UMYC Committee powerboats. He had assumed the pontoon boat had been a Committee boat used during SHOREWOOD CITY COUNCIL REGULAR MEETING September 24, 2007 Page 6 of 14 sailboat races. He did not recollect there being -nore than two powerboats docked at the UMYC from 1973 (when he purchased his property), until approximately 2004; if there were powerboats docked there before that he had assumed they were Committee boats. He quoted excerpts from a memo to Planning Director Nielsen from UMYC Commodore Skip Jewett dated November 12, 1992: "The Upper Minnetonka Yacht Club is a sanctioned yacht club entity, operating under rules of the Inland Lakes Yachting Association. All yachts are sailboats only, except for one powerboat, which is used for officiating races.", and "The use is significantly different from marinas, where boat use and times are determined by owners throughout a 24 hour day. UMYC has rules regarding property, moorings, and use, which have been drafted to eliminate neighborhood complaints and problems." He then quoted an excerpt from a document from John Barlow, dated September 4, 2007; "Then in 2006, our property taxes went from $5,500 to over $27,000." Mr. Thibault explained on August 16, 2007, Hennepin County sent a letter to the UMYC stating the UMYC's properly tax was adjusted down to $13,552.22 based on the UMYC's nonprofit status as a sailing club with sailing school. He stated he and the other residents in the area always understood the UMYC was a yacht club for sailing only. He explained the original UMYC rules required all members to sail a specific number of sailboat races each year. He stated referring to the UMYC as a marina was not appropriate; it should be referred to as a yacht club or a sailing club. He then stated he attended all the City meetings during 1977 and 1978 regarding the UMYC, and there was always discussion regarding the number of sailboats. From his perspective, there it was an oversight when the word "sailboats" was not specifically referenced in the formal resolution. Councilmember Wellens questioned what might happen if the City were to pursue a violation of the UMYC's C.U.P. from a civil enforcement perspective - he asked Mr. Strothman to comment on the UMYC's merits of the case from that vantage point. Mr. Strothman stated in his documents dated August 1, 2007, and September 4, 2007, (including attachments) addressed the issue at the civil matter; they had nothing to do with the criminal matter. He commented that in his documents he had referred to the criminal matter and the presiding judge's decision on April 24, 2007, as an attempt to clarify the decision. He stated an amendment to a C.U.P. could be requested by the applicant or current landowner; from his vantage point there was no legal precedent for the City to initiate action to correct the C.U.P. Mr. Strothman explained that between 1977 and 1.993 there had been 29 occasions on which the City Council dealt with the C.U.P. and its language, and another nine occasions by the Planning Commission; a suggestion was never made to change the language in the C.U.P. In 1977, there were Public Hearings held for C.U.P. permit requests for both the UMYC and the Shorewood Yacht Club (SYC); the Public Hearings were held at the same Plamling Commission meeting with one following the other. Both C.U.P.s were recommended for approval by the Planning Commission -the SYC C.U.P. was limited to "sailboats only" and it included a reference to halyards being tied off; the UMYC C.U.P. did not include limitations to sailboats, but it did include a reduction in the number of slips it could have from 42 to 30. In City correspondence regarding the UMYC's 1992 application for a variance to build a clubhouse on its properly, there were suggestions that restrictions to sailboats could be made as a condition of approval; the resolution recommended by the Planning Commission referenced sailboats only and halyards. Councilmember Callies stated she appreciated that the situation was difficult for the UMYC and the neighboring residents. She then stated it was a conditional use in a residential neighborhood, and by its nature the conditional use permit had special conditions regulating the conditional use. She then stated there were differing opinions as to the decision made at the court proceeding on April 24, 2007, regarding the criminal complaint. She also stated she ]lad reviewed all of the materials that had been submitted regarding this matter, and from her vantage point it was clear to her that the C.U.P. was SHOREWOOD CITY COUNCIL REGULAR MEETING September 24, 2007 Page 7 of 14 granted for a sailing yacht club. She clarified the City was not attempting to rewrite history; it was trying to clarify the resolution granting the conditional use permit for the UMYC. She stated the UMYC was not allowed to have more than two powerboats based on the permit. Callies moved, Turgeon seconded, directing Staff to prepare a draft resolution with findings of fact clarifying Resolution No. 30-78, and patterned after the 1969 approval, limiting the use of the facility to 30 sailboats and two powerboats for the use of the Club. Councilmember Wellens stated it was important that the City move slowly on this matter; the City must protect both the rights of the public and the property owners. He then stated he thought the Council was doing that. Motion passed 4/0/1 with Woodruff recusing. B. Conditional Use Permit for Fill in Excess of 100 Cubic Yards Applicant: Tom and Debra Mahoney Location: 6150 Deer Ridge Director Nielsen stated Tom and Debra Mahoney, 6150 Deer Ridge, proposed to raise the level of their back yard to create a level play area for their children. The project would involve bringing in approximately 1800 cubic yards of fill material and the construction of a rather large retaining wall. The City's zoning ordinance required a conditional use permit for fill in excess of 100 cubic yards; therefore, the Mahoneys had requested a C.U.P. Nielsen explained the property was zoned R-1C, Single-Family Residential, and contained approximately 53,503 square feet of area. The lot sloped from south to north with approximately 25 feet of grade change between the back of the house and the north (rear) property line. The area in which the fill would be placed had been cleared. A relatively dense deciduous wooded area encompasses the rear yard of the site. Nielsen then explained the retaining wall would be terraced, with the upper portion being approximately 240 feet in total length. The lower portion. of the wall would be approximately 50 feet from the rear lot line and 10 feet from the side lot lines. The wall would be approximately 18.5 feet tall at its highest point. The two walls would be separated by a five-foot deep terrace, in which the applicants proposed to plant dogwoods. The applicants proposed arborvitae for the top of the wall, and the wall would be constructed of Keystone masonry block. No tree removal would be required as a result of this request. Nielsen stated Staff considered the location of the proposed wall would be too close to the side lot lines; therefore, it had recommended the wall be moved to be 10 feet from the drainage and utility easement to allow askid-steer vehicle to maneuver along the wall without compacting soil over the tree root system. Tree protection fencing should. be placed at the drainage and utility easement in order to protect the root zone of the trees along that border from construction traffic. He noted that the applicants had stated the fill would be brought in from inside the proposed wall; therefore, there would not be any traffic on the outside of the wall and they did not see a need to move the wall ] 0 feet from the drainage and utility easement. Nielsen then stated Staff also recommended the wall be broken into three sections rather than two with no portion of the wall being higher than six feet. After discussion at a Planning Commission meeting, the Commission agreed the wall could remain at two sections provided neither section was higher than six SHOREWOOD CITY COUNCIL REGULAR MEETING September 24, 2007 Page 8 of 14 feet. The applicants proposed that could be done by lowering the height of the upper tier, and by placing some amount of fill along the base of the lower tier so the overall appearance of any section of the wall did not exceed six feet. In addition, Staff recommended additional landscaping be done; the applicants should submit a landscaped plan prepared by a registered landscape architect for approval. The additional landscaping should break the wall up and soften the view from surrounding properties; it would not have to completely block the wall from view. He commented that the applicants had indicated they intended to plant 50 - 60 trees. Nielsen noted that the City Engineer had also made recommendations with respect to conditions. Nielsen then stated the Planning Commission recommended approval of the C.U.P. subject to Staff recommendations which were modified by the Planning Commission. The modified conditions were specified in the draft resolution. Mike Jaunich, with Alpine Landscape, stated he would be installing the retaining wall for the applicants. He stated he did not foresee any problems accommodating the recommendations of Staff and the Planning Commission. Councilmember Turgeon stated the draft minutes of the September 4, 2007, Planning Commission meeting indicated the motion approved by the Commission specified atwo-tier retaining wall with each tier no higher than six feet, asix-foot wrought-iron fence on the top tier of the wall with plantings on each side of the fence, and no trees being damaged as a result of the fill. She questioned if the City would require an escrow account. Director Nielsen explained the 1800 cubic yards of fill would require approximately 150 12-yard- capacity truck trips across Deer Ridge Road and adjoining roads which would necessitate a letter of escrow to address potential infrastructure repairs. Nielsen stated he did not think the Planning Commission required the wrought-iron fence to be six feet high; City Code specified the fence could be up to six feet high. He recollected the Commission required the fence be a wrought-iron style. He then stated the Commission also wanted trees on both sides of the fence. He noted City Code required the fence be placed five feet inside of the wail; and generally a four foot high fence would be sufficient. He commented he thought there may have to be a slight adjustment to the location of the wall to ensure the trees along the drainage and utility easement were protected; that would be determined once Staff had an opportunity to review a revised plan. He also commented the Commission wanted a fence on top of the wall for safety reasons. Mr. Jaunich commented the applicants proposed awrought-iron style fence would be 42 inches high, which was a standard residential height. Councilmember Turgeon stated from her perspective the $5,000 escrow requirement would address street infrastructure issues, but it would not also address damage to trees. Director Nielsen explained the applicants would also be required to submit a letter of escrow based on an approved landscape plan and bid. Engineer Landini commented that the $5,000 escrow amount was 1.5 times the cost of an overlay of the cul-de-sac. Landini also commented that the application had been forwarded to the City of Chanhassen, but he had not heard back. Callies moved, Wellens seconded, Adopting RESOLUTION NO. 07-063, "A Resolution Granting a Conditional Use Permit to Place Fill in Excess of 100 Cubic Yards for Debra and Tom Mahoney, 6150 Deer Ridge." Motion passed 5/0. Discussion returned to Item S.A on the agenda. SHOREWOOD CITY COUNCIL REGULAR MEETING September 24, 2007 Page 9 of 14 9. GENERAL/NEW BUSINESS A. 2008 Interim Funding Agreement regarding the Southshore Center Acting Administrator Brown highlighted a memorandum from Administrator Dawson dated September 13, 2007, regarding proposed 2008 interim funding between the five cities and the Friends of the Southshore Center. At its August 27, 2007, meeting Council stated it would not support an interim funding agreement that required any amendment to the 1996 Cooperative Agreement; Council did not believe it was appropriate to link the two matters. At the September 7, 2007, meeting of the Southshore Center working group representatives of Excelsior, Greenwood, and Tonka Bay had related that they did not believe it was appropriate to link the two matters; the Deephaven representatives stated the matter would be considered at the September 17, 2007, Deephaven City Council meeting. At that same meeting the working group revised the working draft of the proposed interim funding agreement such that all participants concurred with it (the revision did not include the provision regarding the "Shorewood Option"). The proposed agreement contained a provision (Section 4 Page 2 in the agreement) which restricted the Friends from using any funds from its dedicated building maintenance reserves in the event that it incurred an "operating shortfall" during 2008; the Friends representative on the working group thought this would be acceptable to the Friends Board. At its September 10, 2007, meeting the Friends Board took action that it would not support the provision in Section 4 and proposed the following change to Section 4: "If for any reason, the Friends incur expenses in excess of the contributions of the Cities when operating the Center in 2008, the shortfall shall be the responsibility of the Friends and not the Cities, and no amount in excess of $1.0,000 of the existing reserves of the Friends Board shall be sued for the purposes of `covering' the shortfall. The balance of the Reserves is to be dedicated for building maintenance." Brown stated at its September 17, 2007, meeting the Deephaven Council approved the 2008 Interim Funding Agreement between the five cities and the Friends of the Southshore Center; it did not take any action regarding the Friends' proposed revision to Section 4. The Excelsior City Council approved the Agreement with the Friends' proposed revision to Section 4. Councilmember Turgeon stated she could support the interim funding agreement as revised by and agreed to by the working group, which did not include the Friends' proposed revision. Turgeon moved, Callies seconded, approving the 2008 interim funding agreement between the cities and the Friends of the Southshore Center as presented by the Southshore Center working group. Councilmember Woodruff stated future discussion regarding long-term financing of the Southshore Center would need to include funding contingencies. Mayor Lizee stated she thought the proposed revision to Section 4 could be discussed at a future date. Councilmember Wellens stated he maintained his previous position that the City should not subsidize activities that were exclusive to seniors. Motion passed 4/1 with Wellens dissenting. SHOREWOOD CITY COUNCIL REGULAR MEETING September 24, 2007 Page 10 of 14 B. Discussion Regarding Liquor Stores Attorney Keane stated he had spoken with the broker the City had retained for the sale of its liquor operations to discuss the sale process. He explained the broker was considering closing off inquiries from interested parties on October 5, 2007. The broker would then request term sheets (including qualifications and contingencies) from those prospects. The broker, Staff and some Councilmembers would review the term sheets and cull down the prospects to finalists for each of the liquor stores to negotiate hard terms. A final prospect for each store would then be selected, and the terms of a binding purchase agreement would be negotiated. If the terms of the purchase agreement were acceptable, Council would approve moving forward with the due diligence phase of the sale with appropriate contingencies; he anticipated the due diligence process would take 35 - 45 days. He noted the City must quickly find out if the landlords of the store properties would be willing to reassign the City's current leases with existing terms to the prospective buyers. He also noted that the City had to approve an ordinance to authorize the licensing of off-sale liquor operations and hold a public hearing to issue licenses. He commented the City must also find out the creditworthiness of the prospective buyers. Keane then provided a correction to a statement he had made a couple of weeks before. He clarified that Minnesota Statute did not require that the City hold a public hearing as a prerequisite to divesting the City's leasehold interest in the real estate in the municipal operations. He explained Minnesota Statute did require a process in the planning process that required that any city that acquired, sold or disposed of any interest in real estate shall either: a) refer that acquisition, sale or disposition to the Planning Commission for its recommendation and input; or b) the Council could bypass that referral by adopting a resolution by two- thirds vote dispensing with the request for a recommendation from the Planning Commission. Keane commented that he was not aware of many municipalities that had gotten out of the liquor operations business. Planning Commission Chair Schmitt stated Watertown had done so recently. In response to a comment from Mayor Lizee, Attorney Keane stated there would have to be an investigation of the fitness of prospective licensees which would include a customary background check by the South Lake Minnetonka Police Department and it findings would be referred to the Bureau of Criminal Investigation for further background checks. Councilmember Turgeon suggested the Councilmembers that were members of the Liquor Committee be involved in the process. Councilmember Woodruff questioned if he should withdraw a motion he made (which was passed) at a September 10, 2007, Council meeting regarding the need to hold 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. The motion was made after a very lengthy discussion about what would be discussed and presented at the public hearing. Attorney Keane stated it would be appropriate to cancel that public hearing because it was not a requirement which was what he had originally thought. Councilmember Callies stated that was one alternative; because the City did not have to hold a public hearing did not need mean that it should not have one. Keane stated a public hearing could be held for any reason. Councilmember Callies stated she was mystified as to why some Councilmembers did not want to hold a public hearing on the sale of the City's liquor operations. She thought taking public comment was in concert with the Council's desire to be open with the public. She then stated she did not think it had to be a public hearing, but she thought a public meeting of some type should be held to take public comment SHOREWOOD CITY COUNCIL REGULAR MEETING September 24, 2007 Page 11 of 14 because was Council considering selling a business it had been in for many years. She commented Council had held meetings to take public comment on a variety of topics over the years. Councilmember Turgeon stated at the September 10 meeting there was lengthy discussion about what would be discussed at the public hearing because there was a lot of speculation about potential buyers, timeframe of the sales, etc. There still was not any information on that. Councilmember Callies stated it was not necessary to have the specifics about the possible sale to hold a public meeting. She stated she understood some of the Councilmembers to say they did not want to take public comment on the possible sale of the City's liquor operations. Councilmember Woodruff stated he was very clear when he made the second motion at the September 10, 2007, Council meeting that the motion was to hold a public hearing and that the discussion and presentation would be about the City's potential divesture of lease-hold interests of the two liquor stores. That was no longer required based on the information provided by Attorney Keane this evening. He then stated he was going to withdraw that motion; if Council wanted to hold another meeting he would want to know what would be done at that meeting before he would decide if he wanted to support having the meeting. He commented there was a public hearing scheduled for which there was no purpose and that meeting should not be held; another meeting could be held in its place. He stated he did not have issue with taking public comment about the potential sale of the City's liquor operations; but, he wanted to know what the agenda for the meeting would be before he would agree to it. Woodruff moved, Callies seconded, withdrawing the motion passed at a September 10, 2007, Council meeting 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. Councilmember Callies stated she seconded the motion because by law the City was not required to hold a public hearing. She then stated she disagreed that the topic was a confusing issue. Councilmember Woodruff suggested Councilmember Callies make a motion to hold a public meeting for some other purpose, and he had not heard that yet. Callies stated the purpose was discussed at the September 10, 2007, Council meeting. Mayor Lizee clarified she had asked for a public hearing on the matter based on feedback she had received from the public regarding there had not been a public forum for the public to comment on the possible sale of the liquor operations. Based on comments she had received, members of the public had questions regarding the liquor operations they would like to have answered. The public hearing previously scheduled would have been the forum for that; it was now understood that another public meeting could be held to take public comment and answer questions and she thought that would be an appropriate thing to do. Councilmember Wellens stated he would be supportive of holding a public meeting or a public bearing after the City had received an offer. In response to a question from Mayor Lizee regarding the timing for a public meeting, Attorney Keane stated if the City did not receive an offer it thought acceptable there would be a moot conversation at the public meeting. Keane then stated within a few days the City should have an idea regarding the level of interest and a range of dollars the City could receive for the sale of its liquor operations; the conversation could be more tangible at that time. Motion passed 5/0. SHOREWOOD CITY COUNCIL REGULAR MEETING September 24, 2007 Page 12 of 14 Councilmember Callies stated there may be an issue regarding the timing of a public meeting. The City could hold more than one meeting if it wanted to. From her vantage point, a decision had been made to hire a broker to coordinate the sale of the liquor operations without having all of the information (e.g., what was the sale, were there any interested parties, etc.). She thought it would be appropriate to take public comment about the possible selling of the liquor operations; similar to taking public comment on other matters of City-wide significance, such as road reconstruction projects. Meetings such as that were held to take public comment before a final decision was made. She did not think the City would have to wait to hold a public hearing until specific buyers had been agreed upon. She stated she would be willing to wait a short while until the process was fi~rther along to hold the meeting, although she did not think that was necessary. Councilmember Turgeon stated she understood Attorney Keane to say the City would have additional information by next week. The Liquor Committee, of which Councilmembers Callies and Woodruff were members, would be reviewing that information when it was available and would have a better understanding of some of the specifics. Councilmember Callies stated if Councilmember Turgeon was agreeing to hold. a public meeting she was pleased with that. At the September 10, 2007, Council meeting she understood that some Councilmembers did not want to hold a public meeting. She noted at its July 30, 2007, meeting the Liquor Committee had agreed a forum should be held where public comment could be heard regarding the potential sale of the City's liquor operations before a decision was made to do so; at its August 6, 2007, meeting the majority of the Council agreed to put the City's liquor operations up for sale without that forum. Councilmember Callies stated the public meeting should be held during a regular Council meeting and the public would be given sufficient advance notice. Councilmember Turgeon stated from her vantage point it would be better if the City had enough specific information available to make it worth the public's time to attend the meeting. Mayor Lizee stated she did not think it would ever be a waste of the public's time. Attorney Keane stated there should be information available from the broker by Council's next regular meeting on October 8, 2007, and Council could have detailed conversation about that information. Keane stated Council could also have a special purpose meeting to take public comment. Callies moved, Woodruff seconding, approving a public meeting be held to take public comment on the proposed sale of the City's liquor operations prior to the actual sale of the operations and with sufficient notice of the meeting. Councilmember Wellens suggested a date be set for the public meeting. Councilmember Woodruff stated it may be too soon to set the date. Engineer Landini commented that a public hearing for the Amlee Road, Manitou Lane, Glen Road Road Reclamation project was scheduled for the October 8, 2007, Council meeting. There was agreement that scheduling both meetings on that night may not be the best idea, and that would be too soon. Motion passed 5/0. SHOREWOOD CITY COUNCIL REGULAR MEETING September 24, 2007 Page 13 of 14 10. ENGINEERING/PUBLIC WORKS Director Brown stated the radio read meter project had been started and it was anticipated that it would be completed by the end of November 2007. He also stated the cleaning of the Minnewashta Water Tower had been completed and the bottom of the structure had been painted to cover the graffiti. He then stated there had been discussion regarding possible antenna changes on the Southeast Area Water Tower. Brown stated the City had been receiving phone calls questioning if the deer removal effort had begun. Director Nielsen stated the City had contracted with Metro Bowhunters Resource Board (MBRB) for deer management services to remove deer from specified public and private properties; the removal efforts would be conducted on the second and fourth weekends in October and the third and fourth weekends in November (all of which were within the regular bowhunting season). He noted that the City was not opening a deer season or authorizing hunting within City limits; the City would not be issuing deer licenses to bowhunters. If residents wanted to participate in the effort next year they must become a member of the MBRB. He commented that the MBRB had scheduled an orientation for the selected archers on October 3, 2007. He stated that residents abutting the removal sites would be notified. He commented there would be a limited number of private properties included in this year's deer management effort. He stated he would have a map depicting the sites included in the effort available for Council before its next meeting. Engineer Landini stated roadway paint stripping would start in the near future. Director Brown stated a public hearing was scheduled for October 8, 2007, for the Amlee Road, Manitou Lane, Glen Road Street Reconstruction Project. Mayor Lizee stated she had received an email from a resident containing a flyer for the final neighborhood meeting for the Amlee Road, Manitou Lane, Glen Road Street Reconstruction Project which was scheduled for September 26, 2007, at 7:00 P.M. She stated she wanted to attend the meeting and would like Councilmember Callies to also attend. Councilmember Wellens questioned if the property owners wanted Councilmembers present. Lizee stated she interpreted the flyer being sent to her as an invitation to attend. 11. STAFF AND COUNCIL REPORTS A. Administrator & Staff None. B. Mayor & City Council Mayor Lizee stated she attended a cruise on September 14, 2007, for Municipal Clerks and elected officials which was hosted by Wayzata. Minnesota Secretary of State Richie gave a presentation as did Julie Westerlund with the Minnehaha Creek Watershed District. Mayor Lizee stated on September 13, 2007, she attended a mayors' forum for mayors of the South Lake cities; the forum was hosted by the South Lake League of Women Voters. The forum was well attended. SHOREWOOD CITY COUNCIL REGULAR MEETING September 24, 2007 Page 14 of 14 On behalf of the City Council and City staff, Mayor Lizee extended condolences to the families of Kylie Grayden and Kelly Philips (both Shorewood residents) who were killed in an automobile accident. 12. ADJOURN Turgeon moved, Callies seconded, Adjourning the City Council Regular Meeting of September 24, at 9:02 P.M. Motion passed 5/0. RESPECTFULLY SUBMITTED, Christine Freeman, Recorder Christine Lizee, Mayor ATTEST: _ ,. ~{'" Craig , : ~wsctn, City Administrator/Clerk