082508 CC Reg MinCITY OF SHOREWOOD
CITY COUNCIL REGULAR MEETING
5735 COUNTRY CLUB ROAD
SOUTHSHORE CENTER
MONDAY, AUGUST 25, 2008 7:00 P.M.
MINUTES
1. CONVENE CITY COUNCIL REGULAR MEETING
Mayor Lizee called the meeting to order at 7:00 P.M.
A. Roll Call
Present. Mayor Lizee; Councilmembers Bailey, Turgeon, Wellens and Woodruff; Attorney
Keane; City Administrator Heck; Finance Director Burton; Planning Director Nielsen;
and Director of Public Works Brown
Absent: None
Mayor Lizee introduced and welcomed Brian Heck, the new City Administrator. His first day of
employment with the City was August 18, 2008. She highlighted his credentials. She thanked the
Councilmembers, Staff and Sharon Klumpp, with Springsted Inc., for their efforts in the search for a new
City Administrator.
B. Review Agenda
Wellens moved, Turgeon seconded, approving the agenda as presented. Motion passed 5/0.
2. APPROVAL OF MINUTES
A. City Council Work Session Minutes, August 11, 2008
Turgeon moved, Woodruff seconded, Approving the City Council Work Session Minutes of August
11, 2008, as presented. Motion passed 5/0.
B. City Council Regular Meeting Minutes, August 11, 2008
Turgeon moved, Woodruff seconded, Approving the City Council Regular Meeting Minutes of
August 11, 2008, as amended in Item 9.A, Page 4, Paragraph 6, Sentence 2, change "and he had
only spoken to him one time prior to that." to "and he had only spoken to him one time." and in
Sentence 6 change "the owner of one of the firms lives in the City" to "the owner of one of the
other firms lives in the City". Motion passed 5/0.
3. CONSENT AGENDA
Mayor Lizee reviewed the items on the Consent Agenda.
Turgeon moved, Wellens seconded, Approving the Motions Contained on the Consent Agenda and
Adopting the Resolutions Therein.
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A. Approval of the Verified Claims List
B. Approval of the 2008-2010 Municipal Recycling Grant Agreement Between the City
of Shorewood and Hennepin County (This was moved to Item 10.E under
Engineering/Public Works.)
Motion passed 5/0.
4. MATTERS FROM THE FLOOR
Councilmember Woodruff stated he had received a complaint from resident Gayle Luke regarding people
spinning their tires in the Freemen Park parking lot. He requested Staff research the situation and
determine if it is a problem, and if it is then provide Council with a recommendation for solving it. He
received a suggestion from resident Tom Kelsey regarding the striping of Smithtown Road; Mr. Kelsey
thought the striping should be done differently then the way it was done the last time. Mr. Kelsey
referred to a trail ordinance in his suggestion.
There was consensus to discuss the striping of Smithtown Road as part of Item I O.A on the agenda.
5. REPORTS AND PRESENTATIONS
None.
6. PUBLIC HEARING
None.
7. PARKS
A. Report on the Joint Park Commission/ City Council Meeting and Park Commission
Meeting Held August 12, 2008
Commissioner Hensley reported on matters considered and actions taken at the August 12, 2008, Joint
Park Commission/City Council meeting and at the August 12, 2008, Park Commission meeting (as
detailed in the minutes of those meetings).
Councilmember Turgeon stated at the joint meeting she got the impression that some of the Park
Commissioners did not know there was a master plan for the City's parks. She questioned if the
Commissioners had looked at that plan. She stated the Park Commission discussed the possibility of
hiring a consultant to help with creating a consistent design for modifications to the parks (e.g. shelters
and signage).
Commissioner Hensley stated the master plan did not include specific design criteria for shelters. The
Commission's discussion involved the desire for uniform design. He then stated the Commission had also
discussed what amenities should be in each of the parks. He commented that not all of the parks conform
to the master plan and he thought the majority of the Commissioners had reviewed the master plan.
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8. PLANNING
Commissioner Hutchins reported on matters considered and actions taken at the August 12, 2008,
Planning Commission meeting (as detailed in the minutes of that meeting).
Councilmember Woodruff stated approximately 60 - 70 days ago the Planning Commission held a public
hearing regarding an amendment to the Comprehensive Plan with regard to nonresidential uses in
Planning District 6. The owners of the properties located in Planning District 6, the owners of the
commercial properties located on the south side of County Road 19 across from Planning District 6 and
some of the surrounding residential property owners provided comment on the proposed amendment. The
public hearing was continued for 60 days to allow the property owners time to hire an urban planner to
prepare a development concept sketch for compatible property uses. He questioned if the City had
received a development concept sketch plan.
Director Nielsen stated the City had received a sketch plan. To date nothing has been done regarding a
proposed change to the language in the Comprehensive Plan suggesting there could be other uses for the
commercial properties. He noted the sketch plan will be considered at the September 16, 2008, Planning
Commission meeting. The residential property owners will be re-notified of the public hearing. He stated
at this time a possible amendment to commercial uses Planning District 6 is not causing the delay in
updating the Comprehensive Plan.
In response to a question from Councilmember Turgeon, Director Nielsen stated his revised timetable for
having an updated Comprehensive Plan is November 2008 and the City will have to ask for an extension
from the Metropolitan Council.
A. Preliminary Plat -Petron Rearrangement
Applicant: Karen Petron
Location: 4845 and 4865 Suburban Drive
Director Nielsen stated Karen Petron owns the properties at 4845 and 4865 Suburban Drive. She wants
to convey a portion of the easterly parcel to her son, John, so that he can build a new home on the
property. In order to do so she would demolish the home on the easterly lot and rearrange the property
line between the two parcels, creating a new building site for her son's home. Because the property has
been subdivided once already, the rearrangement requires a formal platting procedure. Ms. Petron has
requested preliminary plat approval for the rearrangement. He then reviewed the preliminary plat of the
proposed rearrangement. He noted the proposed rearrangement does not result in any new lots or
additional homes; it simply reconfigures the existing lots.
Nielsen explained the City's Zoning Code requires when properties capable of additional development
are subdivided, the applicant must provide a resubdivision sketch demonstrating how the remainder of
the property can be developed in the future. He noted it is not necessary to develop the property as
illustrated in the sketch; this sketch will be incorporated into a development agreement as a guide for
when the property ultimately develops. He then reviewed the applicant's resubdivision sketch.
Nielsen stated as part of her request, Ms. Petron asks that the portion of Sunset Lane abutting her
property on the north and a portion of Orchard Lane abutting her property on the south be vacated. He
explained the City had previously considered the possibility of vacating Sunset Lane (a platted, but
undeveloped right-of--way) before. It chose not to do so until a decision was made by the owner of the
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property in question, in case Sunset Lane would become the access to the property. Given the terrain of
the area, the use of Orchard Lane would necessitate the least amount of site alteration. This decision
being considered would allow Sunset Lane to be vacated. Although the applicant is only concerned with
the portion ofright-of--way abutting her property, the City should now consider vacating the entire length
of the right-of--way. He noted some portions of Sunset Lane had been vacated before. He explained when
a property is vacated it goes back to the property it originally carne from; the north half would go to the
property to the north and the south half would primarily go to the subject property. He stated the sketch
also shows a portion of Orchard Lane being vacated, a good share of which is wetland area. The sketch
shows the right-of--way can accommodate the potential resubdivision of the property to the south of the
applicant's. He noted the street right-of--way vacations and the vacation of existing drainage and utility
easements (new ones will be required as part of the final plat) will require a separate public hearing to be
conducted by the City.
Nielsen stated Staff and the Planning Commission recommend approval of the preliminary plat for lot
rearrangement subject to the recommendations identified in the Staff report.
Turgeon moved, Wellens seconded, approving the preliminary plat for lot rearrangement for
Karen Petron for her properties located at 4845 and 4865 Suburban Drive. Motion passed 5/0.
B. Conditional Use Permit
Applicant: City of Shorewood
Location: 5795 Country Club Road
Director Nielsen stated at its August 12, 2008, meeting the Planning Commission recommended approval
of a conditional use permit for the City of Shorewood for the temporary use of the City-owned house
located at 5795 Country Club Road for City Hall operations during the renovation of City Hall. Since
that meeting Staff has had discussions about the logistics of operating out of the house, and
Administrator Heck will review the outcome of those discussions.
Administrator Heck explained after discussions he and Director Brown came to the conclusion that the
logistics of temporarily relocating to the City-owned house were more difficult, time consuming and
costly (both hard and soft costs) than originally thought. There were also issues such as code compliance
and ADA compliance, and the lead time it would take to bring voice and data technology to the house.
After his discussion with Brown he was not totally convinced that temporarily relocating City Hall
operations was the most effective and efficient way to do things. He spoke with Deputy Clerk
Panchyshyn regarding the impact of construction noise on front-counter operations if operations
remained at City Hall during construction. He and staff considered several alternatives for maintaining
operations, and decided to remain at City Hall during construction. If that proves unworkable other
options have been identified for consideration. He noted the contractor had indicated the construction
timetable would not be improved if the operations were relocated because the construction would be
done in stages. The contractor was not sure if that would result in significant costs savings; the savings
would have to be from labor because material costs are fixed.
Administrator Heck stated Staff is recommending the City withdraw its request for a conditional use
permit, and the City lease the City-owned house until a decision is made about the long-term future of the
5795 Country Club Road property.
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In response to a question from Mayor Lizee, Administrator Heck stated there is limited space and time
available for front-counter operations at the Southshore Center and Staff recommends City Hall
operations remain in one location.
There was ensuing discussion about continuing the C.U.P. request for 30 days. Administrator Heck stated
he was confident City Hall operations could continue in City Hall during the renovation. The biggest
concern he has is minimizing the noise impact on the front-counter operations and the visiting public.
Administrator Heck recommended Staff work with the City's leasing agent to find tenants for the City-
owned house with an out clause in the lease.
There was a request to have Staff seek a market evaluation for the 5795 Country Club Road property.
Woodruff moved, Wellens seconded, withdrawing the City of Shorewood's application for a
conditional use permit for the temporary use of the City-owned house located at 5795 Country
Club Road for City Hall operations. Motion passed 5/0.
9. GENERAL/NEW BUSINESS
A. RFP for General Legal Counsel
Administrator Heck stated it was his understanding that Council had asked Staff to prepare a request for
proposals (RFP) for professional general legal counsel services. The RFP provided in the meeting packet
contains the revised RFP which includes the changes recommended at the August 11, 2008, City Council
meeting. He noted the RFP will be revised to include adding Item VI, Legal Services Requirements:
Legal services associated with personnel matters and union contracts; he had forgotten to include that
change.
Woodruff moved, Turgeon seconded, approving the request for proposals for professional general
legal counsel services.
Councilmember Bailey asked Administrator Heck if he was comfortable with the RFP, to which Heck
responded yes.
In response to a question from Mayor Lizee, Administrator Heck explained the recommendation for
appointment would be made at the end of October 2008 and the services would be provided starting the
beginning of 2009, depending on the current contract for legal counsel services.
Motion passed 4/1 with Lizee dissenting.
B. RFP for Professional Auditing Services
Director Burton stated Council reviewed a draft request for proposals (RFP) for professional audit
services at its August 11, 2008, meeting. No additional changes were recommended at that time.
Burton reviewed a few highlights of the RFP.
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a. Request for quotes for athree-year contract, with an option to renew for an additional
three-year period.
b. Screening of the proposals by athree-member Audit Selection Committee comprised of
the City Administrator, the City Finance Director/Treasurer, and one Councilmember.
The Audit Selection Committee would make a recommendation to the Council.
c. The RFP would be posted on the League of Minnesota Cities' website in addition to
soliciting proposals from selected firms.
Burton explained the recommendation for appointment would be made at the end of October 2008 and
the services would begin with the 2008 audit.
Woodruff moved, Turgeon seconded, approving the request for proposals for professional general
audit services.
Councilmember Bailey asked Administrator Heck if he was comfortable with the RFP. Heck stated the
RFP was similar to one used by the City of Lauderdale (his former employer).
Motion passed 4/1 with Lizee dissenting.
Turgeon moved, Wellens seconded, appoint Councilmember Woodruff to the Audit Selection
Committee. Motion passed 5/0.
C. Order for Removal or Repair of Hazardous Building - 21045 Ivy Lane
Director Nielsen stated Council had been provided with two draft orders in the meeting packet. The first
is an order to secure a hazardous building located at 21045 Ivy Lane and the second is an order for
removal or repair for a building located at 21045 Ivy Lane; the owner would either have to apply for a
permit to bring the building into compliance or demolish the building. He explained the City had
received a neighborhood complaint about the building. The building had been damaged by fire two years
ago.
Nielsen then stated Staff recommended both orders be approved. He noted that copies of the draft orders
had been sent to the property owner.
Director Nielsen stated in an email to Staff Councilmember Woodruff questioned if 30 days was
sufficient time to either repair or demolish the building. He thought it was sufficient time to demolish the
building. It would likely not be enough time to repair the building, but it would be sufficient time to
apply for a building permit and then appeal for additional time to complete the repairs.
Councilmember Wellens stated he went to see the property. The grass on the property was approximately
three feet high and the house was in disrepair. The surrounding properties and houses were very well
kept.
Wellens moved, Woodruff seconded, approving Order to Secure Hazardous Building City of
Shorewood in the Matter of Hazardous Building Located at 20145 Ivy Lane.
In response to a question from Mayor Lizee, Director Nielsen explained the property owner would have
to apply for a permit to rehab the building and submit plans for what the rehab would entail.
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Motion passed 5/0.
Wellens moved, Woodruff seconded, approving Order for Removal or Repair City of Shorewood
in the Matter of Hazardous Building Located at 20145 Ivy Lane. Motion passed 5/0.
10. ENGINEERING/PUBLIC WORKS
A. Authorize Expenditure of Funds for Paint Striping
Director Brown stated the quotes for the 2008 Pavement Marking Project were opened and tabulated on
August 20, 2008. He noted in 2008 the City will stripe 53,557 linear feet of street, six intersections and
miscellaneous crosswalks. He stated the low quoter is Traffic Marking Service for an amount of
$7,667.83. Based on other quotes received, the quote seems reasonable. He commented the firm has done
striping work for the City before and it did quality work. He noted the project will be funded out of the
Streets & Roadways Operating Budget which has $11,500 budgeted for 2008 striping. He stated the
remaining funds would be used to stripe other things such as parking lots.
Brown stated Staff recommends the contract for 2008 pavement marking be awarded to Traffic Marking
Service in the amount of $7,667.83.
Brown explained Smithtown Road was designed to state aid standards (i.e., each driving lane is 12 feet
wide). The total paved surface is 30 feet wide and there had been athree-foot pedestrian area striped on
the south side of the road. After the initial striping of the road the City had received comments about how
it was striped. Residents stated the pedestrian area was 2 feet 9 inches wide not three feet wide. He
explained the stripe is approximately 3 inches wide, accounting for the difference, and there can be some
slight variance in location of the stripe (it is not precise). State aid standards allow a road to be striped as
close as 6 inches to the edge of the pavement surface. When the road was originally striped, the stripe on
the north side of the road was placed 12 inches from the edge of the road. Staff recommends the north
stripe be placed 6 inches from the edge of the road, allowing the pedestrian surface on the south of the
road to be slightly wider. He noted the north side of the road does not have a pedestrian area.
Councilmember Turgeon stated she was positive that former Councilmember Zerby had suggested a
compromise of a 4-foot wide area on the south of the road and a 2-foot wide area on the north of the road
when it was determined that a trail could not be put in near the road.
Councilmember Woodruff stated Tom Kelsey's email references an ordinance. He questioned if the City
had an ordinance that specifically addresses Smithtown Road. Director Brown stated he was not aware of
one. He commented when the Comprehensive Plan was last updated there had been discussions about
whether or not the potential future trails should be addressed in the Plan.
In response to a comment and a question from Councilmember Wellens, Director Brown stated pavement
striping generally lasts one year. He explained the City would not begin to receive MSA funds again until
2012 and it will take some time before it accumulates sufficient funds to do any road reconstruction;
Vine Hill Road issues will have to be resolved before that happens.
In response to a question from Councilmember Woodruff, Director Brown stated Apple Road will not be
striped as part of this effort as it had not been striped before.
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Woodruff moved, Turgeon seconded, awarding the contract for the 2008 Pavement Markings to
Traffic Marking Service for an amount of $7,667.83.
In response to a question from Park Commissioner Robert Hensley, Director Brown explained the
pedestrian area on the south side of Smithtown Road should end up being 4 - 5 feet wide. Brown stated
the intent was for pedestrians and bicyclists to both use the pedestrian area on the south side of the road.
Motion passed 5/0.
B. Approval of Change Order No. 2 for Water Meter Project
Director Brown explained at its May 29, 2007, meeting Council awarded the contract for replacing a
portion of the City's water meters and automated system to Northern Water Works. To date, 691 out of
1,366 water meters have been replaced. At its July 28, 2008, work session Council directed Staff to
pursue a second phase of the project. Council had been provided with a proposed changed order from
Northern Water Works to do Phase 2 for an amount of $74,900.34 (there is $75,000 budgeted for 2008
for this effort); this phase will replace approximately 279 water meters.
Brown stated Staff recommends adopting a resolution approving change order 2 for the Water Meter
Replacement Project.
In response to a question from Councilmember Bailey, Director Brown stated when Council originally
approved the project it understood it would have to be done in stages. When Phase 2 is completed, Staff
will determine if the Water Fund will have sufficient funds to replace the remainder of the water meters.
He commented the City hoped to have some increase in revenue from the water utility because of more
accurate tracking of consumption with the new meters. Bailey stated at some point he would like to see a
return on investment (ROI) analysis done for this project; and if there is a return then the remainder of
the meters should be replaced.
Wellens moved, Woodruff seconded, Adopting RESOLUTION NO. 08-059, "A Resolution
Approving a Change Order 2 for the Radio Read Water Meter Project, City Project No. 07-04."
Councilmember Woodruff stated he also would like to have Staff prepare an ROI analysis.
Councilmember Turgeon stated she had recently read a newspaper article about cities who had replaced
their water meters with radio read water meters and one of the benefits was a reduction in public works
staff. The article also stated the new meters had batteries that had to be replaced periodically. She
suggested funds should be budgeted in future years to replace the batteries and or equipment. Director
Brown noted the cost of replacement batteries was researched when the project proposal was prepared.
Motion passed 5/0.
C. Accept Professional Services Contract with WSB and Associates, Inc. for Lift
Station No. 15 Design Work
Director Brown stated the 2008 Goals and Priorities include a project for the design portion of Lift
Station 15 reconstruction. Completing the design phase in 2008 will allow the City to request bids during
a very favorable bidding climate. The reconstruction would occur in 2009. Lift Station 15 is located at
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August 25, 2008
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the intersection of Enchanted Point and Enchanted Lane; it receives ali the flow from Enchanted and
Phelps Islands and discharges the flow to a Metropolitan Council owned system. Council has been
provided with a quote from WSB and Associates for an amount of $20,301 for the design portion of the
project (there is $28,000 budgeted in 2008 for this effort) and $9,255 for construction engineering
services which would be included in the 2009 budget.
Brown then stated Staff had received an email from Councilmember Woodruff suggesting this item be
put out for bids.
Councilmember Woodruff stated he suggested Staff ask for additional bids on the design effort because it
was a standalone project. He then stated the Lift Station abuts either S1loreland or a wetland, and it
appeared it did not satisfy the City's setback requirements. He questioned if there were any
environmental concerns that had to be addressed, and if the City had the necessary easements.
Director Brown explained the Lift Station was a utility and therefore allowed in a public right-of--way;
this particular right-of--way is 33 feet wide. The concrete structure that houses the Lift Station is in tact;
the electrical panels and hardware components need to be rehabilitated. A crushed rock entrance road
will be constructed east of the Lift Station in the public right-of--way for safety reasons; it provides a safe
area for construction areas to work and park. During the design phase there may be best practices of the
Lake Minnetonka Conservation District identified which must be satisfied and agreements requiring the
City to adhere to those practices may have to be prepared.
Councilmember Turgeon stated she supported soliciting bids for the design phase of the project.
In response to a comment from Councilmember Wellens, Director Brown stated the City was not
obligated to get bids for professional design services.
Mayor Lizee questioned if going out for bids would delay the construction phase of the project. Director
Brown responded it would not.
Councilmember Bailey asked Staff if it was appropriate to solicit bids for the design phase and if doing
so would cause any complications. Director Brown stated there would not be any complications.
Administrator Heck clarified that City will actually request quotes for professional services for the design
phase; it would be requesting hourly rates for the scope identified. The City will not be required to take
the low quote.
Woodruff moved, Turgeon seconded, directing Staff to request quotes for services to design the
reconstruction of Lift Station 15. Motion passed 4/1 with Lizee dissenting.
D. Approve Plans, Specifications and Estimates for the SE Area Water Tower
Rehabilitation Project
Director Brown stated at this meeting Council had been provided with revised plans and specifications
prepared by KLM Engineering for the rehabilitation of the SE Area Water Tower located at 5500 Old
Market Road. He noted KLM Engineering specializes in elevated storage tanks and storage tanks. He
also noted this project was started in 2005. Before the plans and specifications could be completed, the
Amesbury Well controls had to be redesigned and the controls had to be close to time of installation.
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Also, the Amesbury Well had to be removed and replaced to ensure there is adequate well capacity (i.e.,
there would be enough capacity to take the SE Area Water Tower out of service).
Brown then stated the estimated cost for engineering and construction for this project is $275,250. A
bond issue was performed in 2005 which included funding for the project for an amount of $300,000. If
the resolution approving the plans, specifications and estimates and authorizing the advertisement for
bids is adopted this evening the bid opening will be conducted at the Southshore Center on September
17, 2008, at 10:00 A.M.
Brown explained Staff has to ensure adequate water flow will be available for fire protection services
during the rehabilitation. The cellular carriers with antennas on the Tower will likely bring in temporary
cellular facilities called cellular on wheels. Staff has worked with the City of Minnetonka to secure a
commitment from that city to allow the City access to water from them should there be a serious fire flow
issue.
Brown stated Staff recommends Council adopt the resolution.
Mayor Lizee stated she was pleased to see this project moving forward.
In response to a question from Councilmember Woodruff, Director Brown stated there were no
significant changes included in the revised documents distributed this evening. He stated a completion
date of November 17, 2008, is specified in the contract.
Woodruff moved, Turgeon seconded, Adopting RESOLUTION NO. 08-060, "A Resolution
Approving Plans, Specifications and Estimates and Authorizing Advertisement for Bids for the SE
Area Elevated Storage Tank Rehabilitation Project, City Project OS-04."
In response to a question from Councilmember Wellens, Director Brown explained there will be some
external welding on the Tower. At the start of construction arms will be welded on the Tower to hang
drapes. Wellens then requested Staff verify the contractor has adequate insurance.
Councilmember Bailey asked Staff to tell him what the worst case scenario impact could be to users of
the system. Director Brown explained by delaying the project to the fall when there is less demand for
water than there is in late spring and through the summer months there are more water reserves. Also, the
City's water system can be supplemented by the City of Chanhassen's and the City of Minnetonka's
water systems, and there is a link between the SE Area Water Tower and the Amesbury Well. He does
not foresee how there could be any major catastrophe.
Motion passed 5/0.
E. Approval of the 2008-2010 Municipal Recycling Grant Agreement Between the City
of Shorewood and Hennepin County
This item was removed from the consent agenda at Councilmember Bailey's request.
In response to a question from Councilmember Bailey, Director Burton stated Staff monitors recycling
statistics such as number of households served and the recycling contractor provides the City with
tonnage collected. In the past the City has satisfied the performance standards identified in the Municipal
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Recycling Grant Agreement and therefore has qualified for grants. Burton has no reason to believe the
City would not satisfy the performance standards in 2008 - 201.0. Attorney Deane clarified the City is
reimbursed based on tonnage recycled. Administrator Heck stated the agreement is similar to the
contracts Hennepin County used in the early 1980's when the SCORE grants for curbside recycling were
implemented; it hasn't changed much.
Bailey moved, Wellens seconded, Adopting RESOLUTION NO. 08-058, "A Resolution Authorizing
Signing of the 2008 - 2010 Municipal Recycling Grant Agreement between the City of Shorewood
and Hennepin County." Motion passed 5/0.
11. STAFF AND COUNCIL REPORTS
A. Administrator & Staff
1. City Hall Construction Update
Administrator Heck stated based on current information from the construction contractor for the
renovation of City Hall, the contractor should be on site starting September 2, 2008, for preparation work
and should start the actual renovation work the week of September 8, 2008.
Director Brown reminded the Council and the Park and Planning Commissions to check the location of
the various meetings on the monthly meeting calendar prepared and distributed by Deputy Clerk
Panchyshyn. He stated staff parking (approximately 12-14 cars) will be limited to the parking lot to the
north of the existing tennis courts during the renovation.
Other Staff Reports
Director Nielsen stated on behalf of Staff he commended Director Brown for the good job he did in
fulfilling responsibilities as Acting City Administrator prior to the hire of Administrator Heck.
Attorney Keane stated the City had been served with a complaint by Matthew Phillippi; the complaint
was served and filed in Hennepin County District Court. Mr. Phillippi alleges the City was negligent
in its design and construction of a stormwater facility that affects leis property, and he believes he was
over charged for City fees when he sub-divided two of his properties. Keane stated there was an
administrative error, and the City is currently processing a refund for the over charge. He did not think
Mr. Phillippi needed to sue the City for a refund. Keane explained the complaint has been tendered to
the League of Minnesota Cities Insurance Trust. Mr. George Hoff has been assigned to handle the
complaint, and lle will work with the law firm Attorney Keane works for on this matter. Keane stated
he will keep Council abreast of the situation. He noted Staff had given its assurance that there was no
merit to the complaint.
B. Mayor and Council Reports
Mayor Lizee stated Tom Anderson, a former mayor of Deephaven and the President of the Friends of
the Southshore Center was present this evening to provide an update on discussions regarding
amending the Cooperative Agreement between the five member cities of the Southshore Center and
the lease arrangement with the Friends.
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Mr. Anderson stated he refers to himself as the Acting President of the Friends.
Mr. Anderson provided a historical recap on the Southshore Center and the issue at hand. In 1995 the
member cities and some interested residents concluded the cities needed a place for the member cities'
senior residents to meet and the cities agreed to build the Sourthshore Center. He commented most of the
cities in Minnesota provide such a place. He explained the land on which the Southshore Center is built
is owned by Shorewood and the facility is jointly owned by the member cities proportionate to each
member cities contribution to the construction cost. Shorewood contributed 50 percent of the $622,000
the member cities spent to build the facility; the other four cities shared the other 50 percent of that cost.
The Friends (a SO1C3 organization) contributed $100,000 to the project from funds it raised. Most of
those funds were used to pay for the contents of the facility and some to offset a shortfall in construction
funds from the member cities. The Friends are responsible to manage the facility and the programs at the
facility. In 1996 the member cities and Friends reached an agreement where the Friends would be
responsible for all of the costs associated with managing and maintaining the facility, even though the
Friends did not have an equity share in the facility. At the time that arrangement was entered into there
was an abundance of grant money and United Way State funding. Because the Friends were responsible
for managing the facility the Friends were able to get grant monies from different sources to maintain the
facility. Unfortunately, grant money is almost nonexistent and United Way funds have diminished.
Senior Community Services (SCS), an organization who provided senior programs, had also contributed
resources to the Friends to assist with rental activities, and it paid for some basic operations support.
When SCS lost its contract with the Metropolitan Council for providing certain services, it informed the
member cities and the Friends it would need an additional $50,000 in combined funding from the Friends
and the member cities in 2008 to continue to provide senior programs. In 2007 the cities agreed to
contribute an additional $25,000 and the Friends committed to raising an additional $25,000 for 2008.
The Friends agreed to present a proposal to the member cities in 2008 on liow to solve the Southshore
Center funding issue long term.
Mr. Anderson stated there is consensus between the member cities and Friends that there should be a
viable facility to house and fund senior programs. The Friends have drafted three proposals based on
discussions with a Southshore Center working group comprised of representatives from the member
cities. There was general consensus in the working group that the third proposal could work. There was
working group consensus that the member cities own the facility and should be responsible for the long-
term care and maintenance of the facility. The Friends, who are the renters of the facility, have an
obligation to pay for the use of the facility (e.g. the utilities and soft costs). There was also consensus that
the Friends should continue to manage the Southshore Center operations as the cities did not want to be
in the rental business. The revenues from the leasing operations would be used to pay for some of the
costs for utilities and soft costs; Friends fundraising will cover the remainder of those costs.
Mr. Anderson stated hopefully there will be a proposal ready to present to the member cities' councils in
the near future which will ask for the member cities to support an amendment to the member cities'
cooperative agreement; that amendment would result in a change in the lease arrangement with the
Friends. He explained based on records from the last twelve months, the operating costs for the
Southshore Center were approximately $38,000; approximately one-half of those costs were for utilities
and soft costs. Over the last few years the member cities' contributions totaled between $14,000 and
$20,000, noting that the 2008 total contribution from the cities was approximately $40,000. The proposed
amendment would stipulate the member cities' contributions would go into a capital fund for the long-
term maintenance of the facility; they would not be used for utilities and soft costs. The Friends agreed to
SHOREW®OD Ci'I'1' C®UNCIL REGULAR MEETING MINUTES
August 25, 2008
Page 13 of 13
continue managing that fund on behalf of the member cities. The working group recommends each
member city assign a representative to the Friends Board.
Councilmember Woodruff stated a Lake Minnetonka Communications Commission (LMCC) ad hoc
committee had been formed to research broadband access to homes and businesses in the LMCC
communities. Representatives from Deephaven, Orono, Victoria as well as Shorewood have expressed
interest in this subject. He is a member of the ad hoc committee. He then stated he is attending the
Association of Metro Cities Revenue and Taxation Policy meetings.
Councilmember Wellens asked Attorney Keane if it was appropriate for the Council to discuss Excelsior
Fire District Fire Chief's performance evaluation. He stated if the Councilmembers did not have. any
feedback for him it was a moot point. Attorney Keane stated Council could go into special session
provided notice of the session was given.
Councilmembers Turgeon and Woodruff stated they had no problem with the evaluation Councilmember
Wellens wants to submit. Councilmember Bailey stated he had not received a copy of the completed
evaluation form; therefore, he would defer to Wellens assessment. Mayor Lizee stated Wellens was
asked to evaluate the Chief's performance because he was the City's representative this year on the EFD
Governing Board.
12. ADJOURN
Wellens moved, Woodruff seconded, Adjourning the City Council Regular Meeting Session
Meeting of August 25, 2008, at 8:52 P.M. Motion passed 5/0.
RESPECTFULLY SUBMITTED,
Christine Freeman, Recorder
4
Christine Lizee, Mayor
ATTEST:
inistrator/Clerk