100807 CC Reg MinCITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD
CITY COUNCIL REGULAR MEETING COUNCIL CHAMBERS
MONDAY, OCTOBER 8, 2007 7:00 P.M.
MINUTES
1. CONVENE CITY COUNCIL REGULAR MEETING
Mayor Lizee called the meeting to order at 7:03P.M.
A. Roll Call
Present. Mayor Lizee; Councilmembers Callies, Turgeon, Wellens and Woodruff; Associate
Attorney Mayeron; Administrator Dawson; Finance Director Burton; Director of Public
Works Brown; and Engineer Landini
Absent: None
B. Review Agenda
Wellens moved, Callies seconded, Approving the Agenda as presented. Motion passed 5/0.
2. APPROVAL OF MINUTES
A. City Council Executive Session Minutes, September 24, 2007
Woodruff moved, Turgeon seconded, Approving the City Council Executive Session Minutes of
September 24, 2007, as presented. Motion passed 5/0.
B. City Council Regular Meeting Minutes, September 24, 2007
Turgeon moved, Wellens seconded, Approving the City Council Regular Meeting Minutes of
September 24, 2007, as presented.
Coun~ilmember Callies requested that the discussion of Item 9.B Discussion Regarding Liquor
Operations be expanded to include additional comments regarding the holding a Public Forum.
Motion failed 2/3 with Callies, Lizee, and Wellens dissenting.
Callies moved, Wellens seconded, continuing approval of the City Council Regular Meeting
Minutes of September 24, 2007, pending expansion of Item 9.B Discussion Regarding Liquor
Operations to include additional comments regarding the holding of a public forum. Motion
passed 4/1 with Turgeon dissenting.
3. CONSENT AGENDA
Mayor Lizee reviewed the items on the Consent Agenda.
Wellens moved, Woodruff seconded, Approving the Motions Contained on the Consent Agenda.
SHOREWOOD CITY COUNCIL REGULAR MEETING
October 8, 2007
Page 2 of 7
A. Approval of the Verified Claims List
B. Staffing - No action required
C. Authorize Expenditure of Funds for Lift Station Communications System (This
item was moved to Item I O.A under Engineering/ Public Works.)
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
A. Reschedule Public Hearing to October 22, 2007, for the Amlee Road, Manitou
Lane, Glen Road Street Reconstruction Project, City Project 07-01
Administrator Dawson stated Council had adopted a resolution scheduling a public hearing for the Amlee
Road, Manitou Lane Glen Road Road Reclamation Project for this evening. The first notice was not
publicized in the City's official newspaper in time to be properly published; therefore the public hearing
should be rescheduled.
Turgeon moved, Woodruff seconded, Adopting RESOLUTION NO 07-064, "A Resolution Setting
Public Hearing Date City Project 07-O1 Amlee Road, Manitou Lane, Glen Road Road Reclamation
Project." Motion Passed 5/0.
7. PARKS
Director Brown stated there had not been a Park Commission meeting since the last City Council Regular
meeting.
8. PLANNING
Commissioner Geng reported on matters considered and actions taken at the October 2, 2007, Planning
Commission meeting (as detailed in the minutes of that meeting).
9. GENERAL/NEW BUSINESS
A. Special Deer Removal permit for the Minnetonka Country Club
Administrator Dawson stated the City received a request from the Minnetonka Country Club Association,
Inc. (MCCA) to permit deer removal trap-and-dispatch activities similar to those conducted on that
property last winter. The City would have to apply for a Special Permit for Deer Removal from the
Department of Natural Resources; the permit from last year was not renewable. MCCA was responsible
SHOREWOOD CITY COUNCIL REGULAR MEETING
October 8, 2007
Page 3 of 7
for all costs and contracting with the firm that would conduct the removal effort. The MCCA was also
authorized to and intended to use the services of the Metro Bowhunters Resource Base (MBRB) archers
this fall.
Wellens moved, Woodruff seconded, approving the deer management plan, directing Staff to apply
for a Special Permit for Deer Removal from the DNR; and approving the agreement with the
Minnetonka Country Club Association, Inc., for deer removal from its property at 24575
Smithtown Road.
Administrator Dawson clarified that the City had adopted an ordinance in 2006 to amend the City Code
so the City could authorize the use of firearms for wildlife management purposes.
Motion passed 5/0.
B. Set Public Forum Date for the sale of the Municipal Liquor Stores
Administrator Dawson stated the City's broker for the sale of the City's liquor operations had received
some letters of intent. After the letters had been developed, they would be presented to the Liquor
Committee for review on October 15, 2007. He stated the broker had indicated some of the interested
parties had expressed interest in making their acquisition as soon as possible.
Dawson then stated at its September 24, 2007, meeting Council decided that it would set a date for a
public forum regarding the proposed sale when it appeared likely that offers would be ready for Council
to consider. Staff suggested Council set October 22, 2007, as the date for the public forum which was the
date for a regular Council meeting; Council could have a special meeting on another date if it so chose.
Councilmember Wellens suggested if the public forum was held on October 22 it should be done before
the public hearing for the Amlee Road, Manitou Lane, Glen Road Road Reclamation Project.
Administrator Dawson stated the public forum would be held during the later part of the meeting.
Councilmember Turgeon questioned if the public forum could be held from 6:00 - 7:00 P.M. Dawson
stated a special meeting could be held prior to the Council's regular meeting. Turgeon stated the public
forum could be scheduled for October 29 or November 5 so the public would not have to wait until the
public hearing for the road project was done. Mayor Lizee stated she would like the forum held as part of
a regular meeting so it would be cablecast; she was concerned that the interested public may not be able
to attend if the public forum started at 6:00 P.M. Director Burton stated it was possible the City may have
offers that could have to be considered before November 5. Councilmember Callies stated the reason for
the public forum was to take public comment prior to hard purchase terms being agreed to.
Councilmember Woodruff stated he thought it was a good idea to cablecast the public forum and he
suggested if the public forum was held at a special meeting on October 22 it could be cablecast; he did
not think it would be appropriate for the public interested in the sale of the liquor operations to have to
wait until the public hearing for the road project was completed.
Turgeon moved, Woodruff seconded, Setting October 22, 2007, from 6:00 - 7:00 P.M. as the date
for public comment regarding the sale of the City's liquor operations.
Councilmember Woodruff stated from his vantage point the purpose of the public forum was to hear
public comment on the sale of the liquor operations, and he expected there would be no other content to
the session.
SHOREWOOD CITY COUNCIL REGULAR MEETING
October 8, 2007
Page 4 of 7
Councilmember Callies stated she thought the public forum would be conducted similar to any other
public meeting where Staff would present general background information on the topic (e.g., what it was
being done, why it was being done, and the status of the situation).
Councilmember Woodruff stated that was exactly not in the motion that was originally agreed to. Mayor
Lizee stated that was included in the motion that was rescinded at the September 24, 2007, Council
meeting. Woodruff stated it was part of the second motion for a public comment session. Councilmember
Callies stated she specifically stated she would not agree to a session where background information
would not be presented. Councilmember Turgeon stated Council had agreed to hold a public forum
which she considered to be similar to a "town hall meeting" and at "town hall meetings" presentations
were not always made. Lizee stated an overview of the information was generally provided when a forum
was conducted; she thought it was appropriate to present an overview of this situation and the status of
the process. Lizee clarified the presentation should cover the liquor operations were for sale, liquor
operations had been a revenue source for the City, and a recap of financial information.
Woodruff withdrew his second of the motion.
Woodruff stated if there was to be a presentation at the public forum, he wanted to know what would be
presented before it was presented.
Turgeon withdrew her motion.
Councilmember Callies questioned what the reason was for Councilmembers Turgeon's and Woodruff's
problem with having a public forum with a presentation by Staff. Councilmember Turgeon stated she was not
unwilling to have a public forum; she wanted to know what the content of the Staff presentation would be.
Callies moved, Lizee seconded, Setting October 22, 2007, as the date for a public forum regarding
the sale of the City's liquor operations; the forum would be conducted similar to other public
meetings, it would be cablecast, and it would include a presentation by Staff.
Councilmember Turgeon stated she assumed that at the public forum financial issues (e.g., projected rate
of return from the sale) could not be discussed because the City could be in negotiations for the sale.
Administrator Dawson stated information regarding what type of rate of return the City could expect to
achieve from any increment of sales per $100,000 could be shared; specific financial information
regarding offers that may be under consideration would not be shared. Councilmember Woodruff stated
it would be unwise to discuss what the City might expect to sell the liquor operations for, to which
Dawson agreed. Mayor Lizee stated information about operating costs, revenues and losses could be
shared as that was already public information. Woodruff stated during the past two Council meetings he
had asked what would be discussed; the Council and Staff had to be cautious so as not to jeopardize any
potential sale by discussing or presenting wrong information at the public forum.
Councilmember Callies stated the majority of the Council had made a decision at an August 2007
Council special meeting to put the liquor operations up for sale. Prior to making that decision, Council
considered liquor operations financial information and that was the information she thought should be
presented to the public. She thought it was disingenuous to make this topic into such a fragile discussion
and indicate the information would be so vague that there would be little value to having a public forum.
The point for the public forum was to make the public aware that the Council had decided to put the
liquor operations up for sale, a business the City had been in for many years, and the sale would close
down one of the City's enterprise funds.
SHOREWOOD CITY COUNCIL REGULAR MEETING
October 8, 2007
Page 5 of 7
Administrator Dawson stated he had assumed a more traditional staff presentation at the public forum
which would include a brief overview, the reasons for Council's decision, and financial performance data
for the liquor operations for the last 3 - 5 years. Mayor Lizee stated she would consider a staff
presentation that was simple, clear, and direct to Council and the public; the legal counsel present at the
public forum could direct Council not to discuss anything that could jeopardize the sale. Dawson stated
the information would be the same as the information Council had had as part of its consideration since
March 2007. Councilmember Wellens stated that the information for the last 3 - 5 years did not reflect
any losses; the liquor operations had lost money before that. Dawson stated the last time the liquor
operations had deficits was in the late 1990s. Wellens stated limiting the information to 3 - 5 years
would only show profits. Administrator Dawson stated the information would show declining profits
over the last few years. Lizee stated all the information that would be presented was already available to
the public; but because the Council was considering ending a revenue source the public should have the
right to offer comments and to have questions answered, some of which she already had been asked.
Councilmember Turgeon stated she did not think any of the Councilmembers had issue with having the
public forum. She was concerned the information that would be presented could convey a biased
perspective because information could not be shared regarding what the financial upside would be if the
liquor operations were sold. She stated the reason for putting the liquor operations up for sale had been
published in various publications as had comment from various Councilmembers.
Mayor Lizee stated the public forum was for people to ask their questions and share their perspectives.
Councilmember Woodruff stated he was 100 percent in favor of the scope Lizee just conveyed.
Councilmember Callies stated she still did not understand the reluctance to have a public forum.
Councilmembers Turgeon and Woodruff stated there was none. Callies stated she heard them to say the
public forum needed to be very carefully structured. Callies then stated Council had been provided
enough information for them to make the decision to put the liquor operations up for sale and that should
be the information presented to the public; that information did not include any projections for what the
operations could be sold for.
Without objection from the seconder, Callies amended her motion to include the time of the
meeting to be from 6:00 - 7:00 P.M.
Motion failed 2/3 with Turgeon, Wellens, and Woodruff dissenting.
Councilmember Wellens stated if the content of the presentation could be clarified the motion could be
considered again.
Councilmember Callies asked for any Councilmember to give an example of when Council had requested
such specific information from staff as to what would be presented in advance of a public meeting.
Councilmember Turgeon stated when the City invited the public to a neighborhood meeting, what would
be presented was specified.
Mayor Lizee asked Administrator Dawson for his recommendation on the presentation.
Administrator Dawson stated he understood Council to say it would like to hold a public forum. He also
heard they wanted some definition of what, if any, the staff presentation would be. He again stated the
staff presentation at the public forum would include be a brief overview of what had happened with the
Council's deliberations this year and then to show trend data of sales and transfers over 3 - 5 years, and
SHOREWOOD CITY COUNCIL REGULAR MEETING
October 8, 2007
Page 6 of 7
then it would be open forum. Councilmember Woodruff questioned if the information from the year-end
audit could be presented. Dawson stated that was where the financial information would be taken from;
the information was in the audit, the budget and in the staff reports. Woodruff stated the presentation
should include year-end financials for the last 3 years. Councilmember Callies stated it should be for the
last 5 years. Mayor Lizee stated for 3 - 5 years. Woodruff stated he had issue with the last 5 years
because of major changes in the operations with the elimination of one liquor store. Dawson stated the
information should be since 2004 because the City exited the Tonka Bay operation in 2002 and the data
in 2003 was not representative because the grocery store at Shorewood Village Center was not open.
Callies stated she thought restricting the information to 3 years was overly narrow, but if that was how
agreement could be reached she would agree. Callies stated the Liquor Committee had considered other
information for other years. Woodruff stated a profit and loss statement, or some segment of, for each of
the three years should be presented. Callies stated she thought information from various City sources of
financial information should be included in addition to information from the auditor's report.
Wellens moved, Turgeon seconded, Setting October 22, 2007, from 6:00 - 7:00 P.M. as the date and
time for a public forum regarding the sale of the City's liquor operations which would include a
presentation by the City Administrator, as agreed to by Council, and the forum would be
cablecast. Motion passed 5/0.
10. ENGINEERING/PUBLIC WORKS
A. Authorize Expenditure of Funds for Lift Station Communications System
This item was moved from the consent agenda for discussion at Councilmember Woodruff's request.
Director Brown stated the City had received notice from Cingular Wireless that the City's current TDMA
service was outdated and it was going to terminate the service being utilized at the City's 15 lift stations
effective October 1, 2007; all previous correspondence indicated the service would be shut down at the
end of February 2008. Cingular agreed to extend the service to the end of October. He reviewed
alternatives and explained his recommendations regarding Verizon / Telhilar. Staff recommended the
purchase be made from Get Wireless, LLC for the Tellular units; the quote for the unit, backup battery
system, remote antenna and hardware was $532.00 per lift station. Staff also recommended cellular
service be provided by Verizon Wireless, under the federal contract, for a flat rate of $11.99 per month
per unit plus a $0.25 per call charge.
Councilmember Woodruff stated it appeared to be a great cost-effective solution. He conducted some
research and found that the same company that made the recommended CDMA solution also made a
version of the unit with GSM. His questioned if Staff considered the GSM unit, and if the signal strength
from Verizon would be acceptable. Director Brown stated he checked the Verizon signal strength at the
lift stations with the CDMA unit and it was fine, and that was a deciding factor. Also GSM was used by
Cingular/AT&T and T-Mobile.
Woodruff moved, Wellens seconded, accepting the quote provided by Get Wireless, LLC, for the
fifteen communications units as specified for an amount not to exceed $7,987.50, and authorizing
Staff to enter into a contract with Verizon Wireless for cellular service to be used in conjunction
with the units. Motion passed 5/0.
Director Brown stated Staff would provide Council with an update on the Christmas Lake Point lift
station project at the next Council meeting.
SHOREWOOD CITY COUNCIL REGULAR MEETING
October 8, 200'7
Page 7 of 7
11. STAFF AND COUNCIL REPORTS
A. Administrator & Staff
Administl-ator Dawson stated the City had its first discussion with the Public Works union, AFSCME, last
week. The insurance re-opener for the SLMPD employees represented by the Teamsters would start this week.
Director Burton stated the network server conversion was in progress. Director Brown stated the plan
was to have it functioning by October 15 or October 16.
Director Brown stated the radio read meter project was well under way 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.
Also, the City was in the midst of the hydrant flushing season.
B. Mayor & City Council
In response to a question, Director Burton stated the City had received the rent check for the City-owned
house.
In response to a question, Mayor Lizee explained that the City had received information from the
Riley-Purgatory-Bluff Creek Watershed District Board of Managers stating that it would return control of
permitting within the Watershed District to the municipalities effective October 1, 2007. She stated that
she and Staff had the opportunity to discuss this matter with Linda Koblick, a Hennepin County
Corrnnissioner. She anticipated the City would receive answers to its questions in the near future.
Engineer Landini stated the topic would be discussed further by that Board at a special meeting next
week; at this time everything stated that the Watershed District is still responsible for permitting.
Mayor Lizee stated a coffee with the mayor session was scheduled for October 13 from 8: - 9:45 AM.
The dedication of the Gideon Glen wetland area was scheduled for October 13 at 10:00 A.M.
Administrator Dawson stated the Excelsior Fire District open house was scheduled for October 11 from
6:00 - 8:30 P.M.
12. ADJOURN
Wellens moved, Turgeon seconded, Adjourning the City Council Regular Meeting of October 8, at
7:59 P.M. Motion passed 5/0.
RESPECTFULLY SUBMITTED,
Christine Freeman, Recorder
ATTEST:
f ~ m
,_
~ ...e ,
' ~ "'
~• ~ ~~ ...
Craig Vti . i~aw~on, City Administrator/Clerk
Christine Lizee, Mayor
/"