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052708 CC Reg Min CITY OF SHOREWOOD CITY COUNCIL REGULAR MEETING TUESDAY, MAY 27, 2008 5755 COUNTRY CLUB ROAD COUNCIL CHAMBERS 7:00 P.M. MINUTES 1. CONVENE CITY COUNCIL REGULAR MEETING Mayor Lizee called the meeting to order at 7: 1 0 P.M. A. Roll Call Present. Mayor Lizee; Councilmembers Bailey, Turgeon, Wellens, and Woodruff; Associate Attorney Maier; Acting Administrator/Director of Public Works Brown; Finance Director Burton; Planning Director Nielsen; and Engineer Landini Absent: None B. Review Agenda Councilmember Turgeon stated at a work session prior to this meeting Council stated it would like to add Item 9.B, Expense Reimbursement for City Administrator Candidates, to the agenda. Acting Administrator Brown requested Item 3.F, Hennepin County Joint Cooperation Agreement for Fiscal Year 2009 - 2011, be moved to a June 9, 2008, Council meeting agenda. Turgeon moved, Wellens seconded, Approving the Agenda as amended. Motion passed 5/0. 2. APPROVAL OF MINUTES A. City Council Work Session Minutes, May 12, 1008 (Att. - Minutes) Turgeon moved, Woodruff seconded, Approving the City Council Work Session Minutes of May 12, 2008, as presented. Motion passed 5/0. B. City Council Regular Meeting Minutes, May 12,2008 (Att.- Minutes) Woodruff moved, Wellens seconded, Approving the City Council Regular Meeting Minutes of May 12, 2008, as Amended in Item 9.D, Page 5, before Paragraph 1, insert new paragraph "Acting Administrator Brown suggested check 46565 be removed from the verified claims list, and Staff would seek input from Ms. Fish and the Park Commission about the garden at City Hall and the possible reallocation of the $100." Motion passed 5/0. 3. CONSENT AGENDA Mayor Lizee reviewed the items on the Consent Agenda. SHOREWOOD CITY COUNCIL REGULAR MEETING MINUTES May 27, 2008 Page 2 of 14 Wellens moved, Woodruff seconded, Approving the Motions Contained on the Consent Agenda and Adopting the Resolutions Therein. A. Approval of the Verified Claims List B. Staffing - Appointment of a Temporary Position for Public Works Seasonal Help C. City Clerk's License List D. Accept Proposal for Safety Services with Safe Assure E. Authorize Expenditure of Funds for Fuel Tanker Trailer F. Hennepin County Joint Cooperation Agreement for Fiscal Year 2009-2011 CDBG (This was moved to a June 9, 2008, City Council regular meeting agenda.) G. Approval of Multiple Dock Facility License for Shorewood Yacht Club H. Appeal Notice to Remove (This was moved to Item 9.C under General/New Business.) Councilmember Wellens questioned if check # 46618 included Attorney Keane's labor cost to perfect and file the confession of judgment against Pastor Nyambu; Attorney Keane had offered to prepare the necessary affidavit and filing at only the expense of the filing fee to the City. Director Burton stated it did not. Motion passed 5/0. 4. MATTERS FROM THE FLOOR Dick Osgood, a Shorewood resident, was present, representing the Lake Minnetonka Association as its Executive Director. He thanked the City for its $6,000 in funding for the herbicide treatment of Eurasian Watermilfoil (EWM) and curlyleaf pondweed in Phelps Bay in 2008, as well as the City's residents on Phelps Bay for their contributions. He stated the herbicide treatment of Carmans, Grays, and Phelps Bays was done on May 13, 2008, and May 14, 2008. His expectation was this treatment would produce positive results based on 2007 treatments and treatments in other parts of the Unites States. There was strong belief that this three bay milfoil treatment program was the first step in getting rid of EWM on Lake Minnetonka. He commented he would stay through the discussion of the Lake Minnetonka Conservation District 2009 Budget because the budget including funding for this project in 2009. Councilmember Woodruff said the signage he observed about the treatment effort stated there was a fish consumption advisory for a short period of time. He recommended similar signage be posted at the Minnetrista and Spring Park boat launches in future years. Mr. Osgood clarified the fish consumption advisory should not have been on the signs on Grays and Phelps Bays; those signs were incorrect as there was no fish consumption advisory. The signs were replaced prior to Memorial Day weekend. SHOREWOOD CITY COUNCIL REGULAR MEETING MINUTES May 27, 2008 Page 3 of14 5. REPORTS AND PRESENTATIONS A. Audit Report by Andrew Berg, CPA, Abdo, Eick & Meyers, LLP Chair Lizee explained the City of Shorewood's 2007 Comprehensive Annual Financial Report (CAFR) had been prepared. Mr. Andrew Berg, CPA, with the independent CPA firm of Abdo, Eick & Meyers, LLP, would highlight the findings. Mr. Berg congratulated the City for receiving the Certificate of Achievement for Excellence in Financial Reporting awarded by the Government Finance Officers Association for its CAFR for the fiscal year ended December 31, 2006 (this was the fifteenth consecutive year that the City had received the Certificate). He anticipated the City would again receive the award for fiscal year ended December 31, 2007. Mr. Berg stated his firm had issued a "clean" opinion on the financial statements; there were no findings found throughout the audit. He noted there were no instances of non-compliance with Minnesota statutes. He said Staff was very cooperative in providing the auditors the information they needed. Mr. Berg provided a financial overview of the City's General Fund expenditures and revenues. He explained during 2007, the General Fund revenues had exceeded expenditures by $377,603 which resulted in an increased fund balance of slightly over $3.76 million, or 71 % of 2008 budgeted expenditures. He commented the City adopted a General Fund Balance Policy in 2007 which had an objective of maintaining a General Fund balance of 55% - 60% of budgeted expenditures, and recommendations for use of the fund balance in excess of 60%. He explained approximately 84.2% percent of the City's revenues and transfers in (for 2007, approximately $4.34 million out of $5.14 million) came from property taxes. Approximately 52.8% of the expenditures and transfers out were related to general government and public safety. Council member Wellens requested the General Fund revenues/transfers 3-year trend chart be modified to show property taxes in one chart and the remainder of the income sources in another chart; the separation of incomes would make it easier to identify the changes in the other sources. Mr. Berg stated by charting all the income sources together it quickly depicts the vast majority of the City's income is from property taxes. He suggested a second trend chart be added for the other sources of income. Wellens also suggested a 5-year trend chart rather than 3-year trend chart be prepared for both revenues/transfers in and expenditures/transfers out. With regard to Debt Service Funds, Mr. Berg stated the 1993 Improvement and Refunding Bonds had been paid in full in 2006, and Council approved a transfer of remaining funds in 2007 to close the fund. The Waterford III Tax Increment Bonds had also been paid in full, and the balance of that fund should be used for a purpose consistent with the tax increment financing plan. He stated the 2002/2003 Public Safety Facility bonds funds issued $10 million of refunding bunds during 2007; until the crossover refunding date both the old and new bonds will be reported on the financial statements. In response to a question from Councilmember Woodruff, Mr. Berg stated these bonds did not count toward the City's levy limits. With regard to Capital Projects Funds, he explained there was an increase of $275,730 in the combined fund balances for all capital projects funds in 2007. The MSA Construction fund had a deficit of $34,902, and he recommended the City monitor that deficit and put a plan in place to eliminate the deficit. This fund also owes $550,000 to another City fund; this is partially offset by an approximate SHOREWOOD CITY COUNCIL REGULAR MEETING MINUTES May 27, 2008 Page 4 of 14 $400,000 receivable owed by Hennepin County for the County Road 19 project. The 2006 year-end Street Reconstruction Fund had a balance of over $1.2 mi II ion. Mr. Berg then highlighted the Enterprise Funds (sewer, water, storm water management, recycling and liquor). With regard to Liquor Funds, he explained the City's liquor operations were sold in 2007; therefore, the audit report shows total assets of $937,073 and total liabilities of $14,919 as of December 31, 2007. He recommended the City determine what should be done with the remaining Liquor funds. Mayor Lizee questioned what portion of the $922,154 Liquor Fund balance were proceeds from the sale of the Liquor Operations. Director Burton subsequently responded that cash increased by approximately $481,000 from the sale of the liquor assets. Mr. Berg said the water fund had slightly more than $3.74 million in cash and cash equivalents and $3.665 million in bonds payable. Revenues remained consistent with the prior year while operating expenses increased. Mr. Berg said the Sewer Fund balance, had a reserve balance of approximately $4.38 million. Fund revenues increased slightly over 2006 and expenses increased by $166,469, mainly due to Metropolitan Council Environmental Service fees; the result was an operating loss of $128,814 for 2007. He recommended the City monitor operations to ensure rates are sufficient to cover operating expenses, debt service and future capital needs. Mr. Berg said there is an approximate balance of $94,600 in the recycling fund. There was a significant decrease in operating revenues and expenses during 2007. This was caused by the City no longer billing residents for the City's Spring Clean-up Day; residents now participate in the program voluntarily. With regard to the Stormwater Management Utility Fund, he explained there was an approximate balance of $322,000. Operating revenues increased in 2007 due to a rate increase; he recommended the City review operations and effectively budget to ensue operations of the fund are a success in the future. He explained the debt-to-assets leverage increased to 44% from 33% during 2007 primarily due to the crossover bond refunding. The debt service coverage ratio of 130% indicates the City is generating enough cash to cover its debt service expenses. The bonded debt per capita increased to $3,30 I from $2,488 primarily due to the crossover bond refunding. The taxes per capita increased to $581 from $544; the higher the amount the more reliant a city is on taxes to fund its operations. The capital assets percentage decreased 3% for governmental activities and remained the same for business-type activities; a higher percentage indicates newer assets and a lower percentage indicates older assets. In response to a question from Councilmember Woodruff, Mr. Berg explained the City has to implement the Governmental Accounting Standards Board (GASB) Statement No. 45 standards effective January I, 2009. This should be of minimal impact to the City. Mr. Berg noted the State set levy limits of 3.9% for the next three years. In response to a question from Councilmember Turgeon, Mr. Berg stated the year-end adjusting entries related to the GASB Statement No. 34 adjustments; the crossover bond refunding; and normal year-end accounting entries. The number of entries was relatively low for a city the size of Shorewood. SHOREWOOD CITY COUNCIL REGULAR MEETING MINUTES May 27, 2008 Page 5 of 14 Mayor Lizee thanked the Finance Department and the audit firm for their efforts. She stated the GFOA Certificate of Achievement was a reflection of the quality of work done by the City's Finance Department. Woodruff moved, Turgeon seconded, Accepting the 2007 Comprehensive Annual Financial Report (CAFR) and Recommending the CAFR be sent to the State Auditor for review. Motion passed 5/0. 6. PUBLIC HEARING None. 7. PARKS - Report by Representative A. Report on Park Commission Meeting Held May 13, 2008 Commissioner Trent reported on matters considered and actions taken at the May 13, 2008, Park Commission meeting (as detailed in the minutes of that meeting). Councilmember Woodruff stated the old shed was still at Freeman Park; it was supposed to have been removed when a new one was built. He said Acting Administrator Brown had informed him the old building would be removed in the near future. Woodruff then stated there was a well that was not used at the Skate Park which he understood was in the process of being decommissioned. There is currently water at the Skate Park because of a water extension from the Barrington Development, so he suggested the Park Commission make a recommendation if a water fountain should be installed. Councilmember Turgeon stated there was a great deal of debris around the concession stand at Freeman Park. She questioned why the path by field two going north was not blocked off; it was her recollection that it used to be blocked. Acting Administrator Brown stated there had to be access for emergency vehicles and he was not aware it had been closed off. Mayor Lizee stated she frequently received questions about why Cathcart Park was a Shorewood park when it was located in Chanhassen. She noted the City had put a skating rink in the Park, and the park was in need of repair. She questioned if the Park Commission or Staff had considered meeting with Chanhassen representatives about sharing the cost of repairs and maintenance. Acting Administrator Brown stated there was an item on the Staff's task list to contact the Chanhassen Park and Recreation Director. Josh Trent stated the Park Commission had discussed that concept and was in support of it. With regard to the Free Fun Fridays Commissioner Trent spoke about, Mayor Lizee commented she thought it was a great program and she commended the Commission for getting retailers and other agencies to sponsor some of the events. 8. PLANNING - Report by Representative Commissioner Gniffke reported on matters considered and actions taken at the May 20, 2008, Planning Commission meeting (as detailed in the minutes of that meeting). With regard to the Planning District 6 discussion Commissioner Gniffke spoke about, Councilmember Turgeon stated it was her understanding the owners of the properties in Planning District 6 and the C- SHORE WOOD CITY COUNCIL REGULAR MEETING MINUTES May 27, 2008 Page 6 of 14 2 District requested an extension before the City would consider amending the Planning District 6 Area Plan. The Commission had already drafted the amendment. 9. GENERAL/NEW BUSINESS A. Lake Minnetonka Conservation District 2009 Budget Acting Administrator Brown stated this evening's meeting packet contained a draft 2009 Lake Minnetonka Conservation District (LMCD) budget and an accompanying cover letter from Greg Nybeck, Executive Director of the LMCD. He explained the proposed levy to the member cities is $376,617, an 18.3% ($58,479) increase over the 2008 levy. There are three items that primarily contribute to the increase. There is $20,000 budgeted to address the LMCD's reserve fund balance; an increase of $15,000 over 2008. There is a $7,500 decrease in the court fine revenue budget, and a $2,500 increase in LMCD prosecution fees. There is $30,000 budgeted for the Three Bay milfoil treatment project for the treatment of Eurasian Watermilfoil and curly leaf pondweed on Carmans, Grays, and Phelps Bays; this effort was funded at the same amount out of the LMCD "Save the Lake" funds in 2008. Mayor Lizee stated Rich Siakel, the City's representative to the LMCD, was present this evening to address Council. Mr. Siakel stated this is his first opportunity to come before Council regarding the LMCD since he assumed his position three months ago. He explained that the City's portion of the proposed levy would be a 15.5% increase over 2008. He stated when the budget was being drafted he suggested the budget have a line-item for funding the herbicide treatment project. The current milfoil harvesting program is ineffective; it's similar to cutting grass. The herbicides used in the current herbicide treatment program indicate it can reduce the growth of mil foil. After the first few years the cost of the herbicide treatment goes down significantly; and after the initial first few years of herbicide treatment, substantially more acreage of milfoil could be treated with herbicides than with harvesting for the same amount of money. He stated this is the proposed draft budget; if the budget has to be reduced, it is his hope the line-item for the milfoil treatment program will stay in the budget and other reductions will be considered. He commented in 2008 the LMCD is spending $35,000 for a code enforcement project which is enforcing one ordinance; complaint based enforcement could possibly be considered. Councilmember Woodruff described the LMCD in general; he explained the LMCD was created by State Statute; it is responsible for the surface of Lake Minnetonka; the City is responsible to the lakeshore; and the Department of Natural Resources (DNR) and the Minnehaha Creek Watershed District (MCWD) have other areas of responsibilities. The LMCD has the ability to levy taxes. The LMCD Board has a representative from each of the fourteen lake area cities. The member cities' councils can review and comment on the LMCD budget, but they cannot veto or approve a budget. Councilmember Woodruff supports the funding for the general reserve fund. He stated he did not think the $30,000 budgeted for the herbicide treatment program is sufficient. The projected costs for the program in 2009 are $175,000, and a $25,000 grant is expected from the DNR; therefore, other sources must fund the remaining $150,000. He recommended the LMCD consider funding all of the remaining $150,000. He commented he thought it was a State, Hennepin County, Metropolitan Council, and DNR funding problem; but, someone has to take the lead and it is not fair to the individual property owners to have to fund the effort alone. He stated from his vantage point the LMCD should take ownership of the treatment program. The Lake Minnetonka Association (LMA) has done a great job in developing and conducting the program to date; but it's the LMCD responsibility to do such things. He commented the LMA should stay involved. SHOREWOOD CITY COUNCIL REGULAR MEETING MINUTES May 27, 2008 Page 7 of 14 Councilmember Turgeon stated if all member cities have their representatives convey their cities don't support an 18.3% budget increase and vote accordingly, the cities would have an impact on the LMCD budget. She questioned the line item for prepaid management plan expenses which was added in 2008. She agreed with the need to grow the General Reserves Fund, but she did not support an increase of $15,000 in one year. She stated she watched the video of the last LMCD Board meeting and she is not convinced everyone agreed with funding the herbicide treatment program. She stated the budget does not include the Save the Lake Fund. It is her understanding that some of the levy will go into the Save the Lake Fund. Turgeon stated if the funds in the Save the Lake Fund came from contributions, then it is appropriate to exclude it from the budget. Mr. Siakel stated he did not know if that is true or not; but, the reason he wanted a line item for the herbicide treatment program in the budget was there is no guarantee there would be funds available in the Save the Lake Fund for the program. He asked Dick Osgood, LMA Executive Director, if he understood the intricacies of the Save the Lake Fund. Turgeon stated she preferred Mr. Osgood not respond as this was an LMCD matter. Councilmember Bailey stated he did not have a great deal more to add, but he did think an 18.3% increase was difficult to accept. The City Council already understands it has some difficult decisions to be made regarding 2009 budgets, and funding for public safety. He recommended if the LMCD thought the herbicide treatment program was a priority, it should make a very concerted effort to reduce costs in other areas and convey that to the member cities. Councilmember Wellens stated Mr. Nybeck's cover letter refers to the LMCD "Save the Lake" Funds; he questioned where the $30,000 in funding for the 2008 herbicide treatment program would be used in 2009. Mr. Siakel stated he had no idea if there was $30,000 in the Fund. Wellens stated he had difficulty accepting an 18.3% increase; the City would have a 3.9% levy increase in 2009 - 2011 and the proposed increase for public safety was greater than that. Wellens referenced a letter from Deephaven Mayor Skrede in which Mr. Skrede recommended the member cities be allowed to send an alternate representative to a Board meeting when necessary; he requested Mr. Siakel support that request. Councilmember Woodruff supported Mr. Skrede's request, and he requested the City's Board Member and alternates receive all materials. Mr. Siakel stated having an alternate would make the position less demanding and easier to recruit for; the enabling legislation for the LMCD allows for only one member per city and it also requires three-year terms which two-thirds of the member cities don't adhere to. Mayor Lizee stated allowing alternates would make it easier to have a quorum at Board meetings, and she supported adhering to the three-year term which is similar to the City's Commission appointments. Mayor Lizee stated she concurred with her fellow Councilmembers regarding concerns about the size of the budget increase. She then stated it was important for everyone to consider the long-term impact of Aquatic Invasive Species (AIS) and the need to mitigate, eradicate, prohibit entry of, and/or manage AIS. During 2007 the mayors of the Lake area communities met to discuss AIS issues. The group found there were many agencies (State, Federal, regional and local), councils, and people concerned about AIS, but there was not concerted effort towards addressing it. Getting the State legislation to agree the AIS problem has to be addressed is a challenge. Representative John Burns had tried to advance this issue, and it must be advanced throughout the United States. She stated the City's Enchanted Island residents were present to show their support for this issue. SHOREWOOD CITY COUNCIL REGULAR MEETING MINUTES May 27, 2008 Page 8 of 14 Mr. Siakel stated he did not like to have his taxes increased; but, the City's portion of the 18.3% increase is approximately $4,800 which equates to less than $1 per resident (there are approximately 7400 in the City). He does agree other areas of the budget should be scrutinized and may be reduced. Councilmember Turgeon requested Mr. Siakel convey the Council's sentiments regarding the 18.3% increase. Mr. Siakel stated he would convey an 18.3% increase was not acceptable and it must be reduced to a single digit increase. He then stated he will make an effort to learn more about the Save the Lake Fund. Councilmember Woodruff questioned what the Council's position was regarding the LMCD assuming control for the herbicide treatment program, and the LMCD funding $150,000 for the 2009 program. Councilmember Turgeon stated not if the budget was going to increase 18.3%. Mayor Lizee suggested the LMA follow through with its responsibility for the program as it had developed and coordinated the program. Councilmember Woodruff stated in January 2008 the LMCD stated the reason it would only fund $30,000 of the 2008 treatment effort was it wasn't in the budget and now there was an opportunity to include funding in the budget. Lizee stated this AIS issue is more than an issue for the Lake area communities, but addressing it has to start at that level, while efforts continue to be made to get regional, State and Federal government agencies to assume responsibility for it. Councilmember Bailey expressed concern that the communities would spend a lot of money and the agencies would never own up to the problem. Woodruff stated getting other agencies to assume responsibility for the issue will take time; he questioned if during that time it was appropriate to lessen the burden on individual property owners through LMCD funding. Mayor Lizee asked if the Enchanted Island residents present this evening had any comments to share with Mr. Siakel. Jim Salters, 4420 Enchanted Drive, stated he would like to know the detail behind the line item salaries included in the LMCD budget. He challenged if the LMCD should be the lead force in the area for AIS. He stated there is a calling for the elimination of AIS independent of how it is done. He stated the methods used for dealing with AIS are twentieth-century methods; it was time to deal with problems of the twenty-first century with twenty-first-century methods. If there was any way for the residents, City Councils, and other agencies to help eliminate AIS it will create a better environment for future generations. He suggested the Council question each line item in the LMCD budget. He stated it was imperative to eliminate AIS in a meaningful and fiscally responsible way. He noted some of the Enchanted Island residents had recently had an excellent meeting with Mayor Lizee regarding AIS. Dick Osgood, Executive Director of the LMA, stated he appreciated Councilmember Woodruff's sentiments for the LMCD to assume responsibility for this program and the issue of AIS; LMCD staffing and budget restraints may not allow for that. He clarified the LMA is not just a volunteer organization; he was employed under contract for half of his time, and he was a scientist and one of a few certified lake managers in North America. It was the LMA's vision the program should be a public program. He clarified the herbicide treatment programs have been used throughout the Country; in Michigan there have been over 300 treatment programs over 20 years, and there had been a high degree of success. In the most recent Journal of Aquatic Plant Management there was a research agenda for managing invasive plants and harvesting was not mentioned; harvesting is a pruning technique. The current herbicide treatment program is the first step in ridding Lake Minnetonka of milfoil. He offered to answer any questions about the LMCD Save the Lake Fund. SHOREWOOD CITY COUNCIL REGULAR MEETING MINUTES May 27, 2008 Page 9 of 14 John Kimball, an Enchanted Island resident, questioned if he understood Councilmember Woodruff to state the 18.3% increase would not be funded out of the City's levy. Woodruff stated the LMCD was a separate taxing authority and was funded through property taxes. Councilmember Wellens said the LMCD increase is part of the City's levy. Director Burton clarified the City does pay quarterly to the LMCD and that is funded out of the City's levy; the LMCD can levy if there is a shortfall in funding. Mr. Kimball noted that approximately 25% of the properties on Phelps Bay are owned by Shorewood residents, yet they contributed approximately 50% of the residents funding for the treatment of Phelps Bay. He commented there is a county park and a lot of lake surface in Phelps Bay. He questioned if the City had considered the need for an environmental director to head up a volunteer group. Mayor Lizee thanked the residents and appointees for attending the meeting. Councilmember Woodruff requested Staff place the topic of AIS on a future work session agenda. Mayor Lizee suggested Staff make a recommendation for that. Councilmember Wellens suggested the LMCD guide the member cities on what to communicate to the State in letters requesting support for addressing the AIS issue. Woodruff suggested the Lake area cities drive this issue collectively. Mayor Lizee stated the next City newsletter will contain an article on AIS. B. Expense Reimbursement for City Administrator Candidates Acting Administrator Brown stated at a work session preceding this meeting Council discussed reimbursing expenses incurred by City Administrator candidates when them came for interviews. During that discussion there was agreement to reimburse mileage at the IRS rate for any trip over 50 miles, and to reimburse up to $250 per candidate for lodging and per diem. Woodruff moved, Wellens seconded, approving reimbursement for mileage at the IRS rate for any trip greater than 50 miles and, if necessary, reimbursement of lodging and per diem not to exceed $250 per candidate. In response to a question from Councilmember Wellens, Acting Administrator Brown stated the City had a policy for reimbursing Council for mileage. Councilmember Turgeon stated a 50-mile round trip was a relatively short distance. Director Burton suggested mileage be reimbursed for candidates outside of the seven county metro area. Without objection from the seconder, the maker amended the motion to say mileage would be reimbursed for any candidate living outside of the seven county metro area and, if necessary, reimbursement of lodging and per diem not to exceed $250 per candidate. Motion passed 5/0. C. Appeal Notice to Remove This item was removed from the consent agenda at Councilmember Woodruff's request. Councilmember Woodruff requested Director Nielsen review the Staff report on this topic distributed at this meeting. SHOREWOOD CITY COUNCIL REGULAR MEETING MINUTES May 27, 2008 Page 10 of14 Director Nielsen stated he inspected the property located at 4865 Ferncroft Drive earlier in the day and he was pleasantly surprised to find that the cleanup of the site was nearly completed. The only item remaining was a pickup truck cab located on the patio beneath the owner's deck. Mr. Born, the owner of the property, indicated he was attempting to sell it and it would be gone by the date of the proposed deadline extension (27 June 2008). Staff recommends the extension be granted. Woodruff moved, Wellens seconded, granting an extension period of 30 days to Ronald Born, 4865 Ferncroft Road, to complete removal of offensive and unhealthy substances from the property. Motion passed 5/0. 10. ENGINEERING/PUBLIC WORKS A. Accept Bids and Award Contract for Seal Coat Project Acting Administrator Brown stated Staff had prepared a resolution to accept bid and award contract for the 2008 bituminous seal coating of streets. The bids were open and tabulated on May 21, 2008. The low bidder is Allied Blacktop Co. in the amount of $224,860.15 for all three Cities; the City's portion of the bid is $126,230.25. It appeared the costs for this project were reasonable and Staff recommended awarding the bid to Allied Blacktop Co. Turgeon moved, Bailey seconded, Adopting RESOLUTION NO. 08-041, "A Resolution Accepting Bid and Awarding Contract for the 2008 Bituminous Seal Coating of Streets, City Project No. 08-02." In response to a question from Councilmember Wellens, Acting Administrator Brown explained the remainder of the funds budgeted for 2008 road maintenance would be use for the mill & overlay of Blue Ridge Lane, Cathcart Drive, and Apple Road. Acting Administrator Brown noted the seal coating effort will not occur until later in the summer to allow the Public Works staff adequate time to patch the roads; there are many more roads to be seal coated than traditionally done in the past. Motion passed 5/0. B. Accept Bids and Award Contract for Lift Station 16 Project Engineer Landini stated bids were opened for the Rehabilitation of Lift Station No. 16 on May 21, 2008. The low bidder is CCS Contracting, Inc. in the amount of $88,4 16.00, compared to the engineer's estimate of $86,340.00. Landini said it appeared the costs for this project are reasonable. Staff recommended approval of the resolution accepting the bids and awarding contract to CCS Contracting, Inc. in the amount of $88,416.00. Bailey moved, Turgeon seconded, Adopting RESOLUTION NO. 08-042, "A Resolution Accepting Bid and Awarding Contract for the Rehabilitation of Lift Station No. 16, City Project No. 06-01." Motion passed 5/0. SHOREWOOD CITY COUNCIL REGULAR MEETING MINUTES May 27, 2008 Page 11 of14 11. STAFF AND COUNCIL REPORTS A. Administrator & Staff Acting Administrator Brown stated there was a watermain break in the Waterford subdivision on May 26,2008; the repairs were made on May 27, 2008. Acting Administrator Brown stated at its May 12, 2008, meeting Council scheduled a work session for June 2nd. Mayor Lizee stated she was not in attendance at that meeting so she was unaware of the work session. She had a previous conflict with the 6:00 P.M. work-session start time, but she could attend if it were to start at 4:00 P.M. or at 8:00 P.M. Lizee stated she would appreciate having some flexibility in meeting times (such as right after City Hall closing or in the morning). In response to a question from Mayor Lizee, Director Burton read the tentative agenda for the June 2nd work session: discussion of the City Administrator performance review form; Council communications regarding the open meeting law; fiber optics to City Hall; and implementing an administrative fine process. The tentative agenda for the June 9th work session is Liquor Fund use, financing City Hall (although the bond consultant may be postponed to June 23rd after the construction bids were opened); a revised draft investment policy; and Southshore Center funding. Acting Administrator Brown explained budget work sessions would start the end of June, and work session topics were scheduled out into August. Discussion ensued about work-session start times. Mayor Lizee stated she did think it was necessary to schedule some type of Council meeting for every Monday. She stated if a topic is on the 2008 goals and priority list or if it is carried forward from the 2007 then it is important to address it, but if it is a new topic she questioned if it was imperative that it be discussed in work session prior to budget discussions. Mayor Lizee clarified the Council work session scheduled for June 2, 2008, would start at 6:00 P.M. Director Burton stated budget discussions would begin at the June 23, 2008, Council work session. Director Nielsen stated the Minnetonka School District had submitted a traffic management plan for the Minnewashta Elementary School, and the graphics will be submitted by May 31, 2008. The topic will be placed on the June 9, 2008, Council regular meeting agenda. B. Mayor & City Council Mayor Lizee stated she had spoken with SLMPD Chief Litsey regarding the disaster in the City of Hugo which was caused by a tornado on May 26, 2008; Hugo was looking for volunteers to help with the cleanup effort. She questioned if there was anything the City or the Lake Area Emergency Management Team could do to be of assistance; Hugo had a need for building inspectors. Lizee stated she attended a meeting of the City's Enchanted Island residents regarding aquatic invasive species. Rich Siakel and Dick Osgood also attended the meeting. Lizee explained there had been a joint meeting of the SLMPD member cities' councils on May 14, 2008, to discuss the SLMPD Strategic Action Plan. Chief Litsey provided an overview of the Plan and a five year budget projection. She listed the four strategic goals the Strategic Planning Group had SHOREWOOD CITY COUNCIL REGULAR MEETING MINUTES May 27, 2008 Page 12 of 14 agreed were critically important to the future of the SLMPD - establish a timetable for phasing in additional police officers earmarked for the patrol division; increase the overtime budget so that manpower issues due to training, illness, injured on duty, and time off requests, can be more readily accommodated in the work schedule; maintain pace with changing technology and have a sufficient fund balance available to update, replace, and add new technologies; and establish a capital fund for the long- term care and maintenance for the public safety facility. At the close of the meeting Chief Litsey requested non-Group attendees submit any questions they may have to him so he could respond to them. Lizee stated there was a coffee with the mayor session held on May 10, 2008, and Art on the Lake was scheduled for June 7th and June 8th at the Excelsior Commons. Councilmember Wellens stated at the SLMPD joint meeting several of the City Councilmembers were somewhat skeptical of the proposed the accumulated increase in the SLMPD operating budget between 2008 and 2012 of approximately 45%. Because several members expressed skepticism, he prepared a summary of their objections to the presentation, and he suggested Council communicate with the other member cities about the problems and a proposed change in direction for the budget process. He recommended the summary be distributed to the other member cities' councils. Mayor Lizee stated she did see a copy of the document Councilmember Wellens had prepared, and she expressed concern with it saying it was from the Shorewood Council; it had not come up as an agenda item. She it was somewhat presumptuous to put the Shorewood Council's name on the document and noted that two members (40%) of the Council were part of the Strategic Planning Group. She asked if Wellens had sent the list of questions to Chief Litsey. Wellens stated they were expressed verbally during the meeting. Wellens asked if Council wanted to review and discuss the concerns, and he welcomed any recommendations for changes. Lizee suggested Council review the questions and discuss them on a future agenda. Councilmember Wellens stated he had submitted the document to Acting Administrator Brown asking that it be placed on the agenda. It was his understanding that Mayor Lizee requested that not happen, and he questioned what the other Councilmembers thought about the Mayor controlling the agenda. Mayor Lizee stated she would like to have the ability to review the agenda before it was published. The document was submitted on the morning of Thursday, May 22, 2008, after the agenda had been finalized and while the meeting packets were being prepared. She stated Councilmember Wellens's recommendation for a change in the budget process appeared to suggest a change in the Joint Powers Agreement. Councilmember Wellens stated he didn't suggest anything change to the JP A. Lizee suggested Chief Litsey be invited to attend a public meeting and address Council member Wellens's questions prior to distributing anything to the other member cities councils. Council member Turgeon stated she would have preferred Councilmember Wellens's document been included in the meeting packet for a reference piece, asking Councilmembers to consider sending the document about the funding concerns to the other councils. If the other councils shared the concerns, it could then be sent to Chief Litsey. Mayor Lizee stated the summary document was prepared by Wellens yet signed by Shorewood City Council, which included her, and she thought it was inappropriate. Wellens said he should have signed it from himself. SHOREWOOD CITY COUNCIL REGULAR MEETING MINUTES May 27, 2008 Page 13 of 14 Councilmember Woodruff stated three of the City's Councilmembers took exception to what was presented at the meeting on May 14, 2008. He also had prepared a document he would like to discuss about the Action Plan, in particular with regard to the staffing increase. He stated it was important for Council to have discussions regarding the concerns about the Plan, and he would like to discuss them at this meeting. He then stated after the meeting he told Chief Litsey there had not been an adequate case to justify the addition of staff. He extracted data included in the various Strategic Planning sessions about the performance of the SLMPD and he found no justification for adding two officers. He prepared a statistical comparison of the SLMPD to Mound, Orono, and Hennepin County with regard to Part 1 and Part 2 crimes in 2006. The summary of his comparison is as follows. The SLMPD had the highest clearance rate with the lowest officer/lOOO population. The SLMPD and Mound have equivalent officers per Part 1 and Part 2 crimes. Orono has more officers per Part 1 and Part 2 crimes, but the lowest clearance rate. He also stated the activity level was relatively flat between 2003 and 2006. He stated he would provide Chief Litsey with his findings, and he cannot support the addition of two officers. Mayor Lizee was pleased to hear Councilmember Woodruff would share his analysis with Chief Litsey. She stated there is a lot more discussion to occur. The SLMPD Strategic Planning initiative was initiated last year when Chief Litsey met with each of the member cities' councils. She and Councilmember Turgeon had attended five Strategic Planning meetings so far this year during which justification was discussed in great detail. Wellens moved, Woodruff seconded, directing Staff that the Mayor has not been granted by Council any power over the Council agenda nor does the Mayor have the power to veto any request from a Councilmember. Councilmember Bailey stated if one Councilmember wanted to distribute information to the council, it should occur quickly and smoothly. With the open meeting laws he was not sure how Councilmember Wellens could have sent the information to everyone otherwise. It is incumbent upon Mayor Lizee to create a draft agenda; but he had issue with telling Staff not to distribute something requested by a Councilmember. Lizee clarified Wellens had asked the item be placed on the agenda at a late date, and to see the letter signed by Shorewood City Council (which implied agreed to by the Council) was problematic. Councilmember Bailey stated he would have appreciated having the information, although he might have been uncomfortable having it on the agenda. Councilmember Turgeon stated placing an item on the agenda at last minute had happened before for City meetings. It could have been submitted for discussion not action. Mayor Lizee stated the document was Council member Wellens personal opinion and his name should have been on the bottom of the document. As a point of order, Councilmember Woodruff called for a vote. Motion passed 4/1 with Lizee dissenting. Councilmember Turgeon stated she had heard concern from residents in Ward 2 about high levels of arsenic in their private wells. She informed them arsenic was a natural chemical. She also had received numerous calls about coyotes. SHORE WOOD CITY COUNCIL REGULAR MEETING MINUTES May 27, 2008 Page 14 of 14 Councilmember Woodruff reported at the last LMCC meeting Patrick Hodapp had been elected secretary. 12. ADJOURN Wellens moved, Woodruff seconded, Adjourning the City Council Regular Meeting of May 27, 2008, at 9:32 P.M. RESPECTFULLY SUBMITTED, Christine Freeman, Recorder Christine Lizee, Mayor ATTEST: awrence A. Brown, Acting City Administrator/Clerk