090808 CC Reg MinCITY OF SHOREWOOD 5735 COUNTRY CLUB ROAD
CITY COUNCIL REGULAR MEETING SOUTHSHORE CENTER
MONDAY, SEPTEMBER 8, 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 (arrived at 7:04 P.M.)', Turgeon, Wellens and
Woodruff; Attorney Keane; City Administrator Heck; Finance Director Burton; Planning
Director Nielsen; Director of Public Works Brown; and Engineer Landini
Absent: None
B. Review Agenda
Turgeon moved, Woodruff seconded, approving the agenda as presented. Motion passed 4/0.
2. APPROVAL OF MINUTES
A. City Council Work Session Minutes, August 25, 2008
Turgeon moved, Wellens seconded, Approving the City Council Work Session Minutes of August
25, 2008, as presented. Motion passed 4/0.
B. City Council Regular Meeting Minutes, August 25, 2008
Woodruff moved, Wellens seconded, Approving the City Council Regular Meeting Minutes of
August 25, 2008, as presented. Motion passed 4/0.
3. CONSENT AGENDA
Mayor Lizee reviewed the items on the Consent Agenda.
Wellens moved, Turgeon seconded, Approving the Motions Contained on the Consent Agenda and
Adopting the Resolutions Therein.
A. Approval of the Verified Claims List
B. Authorize Expenditure of Funds for Amesbury Well Removal
Councilmember Woodruff clarified that the Amesbury Well is not being removed; maintenance is being
done on the Well.
Motion passed 4/0.
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September 8, 2008
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4. MATTERS FROM THE FLOOR
There were no matters from the floor presented this evening.
5. REPORTS AND PRESENTATIONS
None.
6. PUBLIC HEARING
None.
7. PARKS
Director Brown stated there had not been a Park Commission meeting since the last regular Council
meeting. The next meeting is scheduled for September 16, 2008.
8. PLANNING -Report by Representative
Director Nielsen stated there had not been a Planning Commission meeting since t11e last regular Council
meeting. The next meeting is scheduled for September 16, 2008.
9. GENERAL/NEW BUSINESS
Councilmember Bailey arrived at 7:04 P.M.
A. 2009 General Operating Proposed Budget
Finance Director Burton stated the 2009 Proposed General Fund Operating Budget for review and
approval this evening is the result of Council and Staff work-sessions on June 23`d, August 4"', August
I lt'' and August 25"', 2008. Council and Staff began their budget work with a first draft that contained a
zero percent tax levy increase. During subsequent work sessions, Council and Staff closely reviewed all
aspects of the preliminary 2009 General Fund Budget, and carefully increased or decreased various
components of the budget when additional information became available.
Burton then reviewed the highlights of the 2009 General Fund Operating Budget.
Burton stated levy limits are in place for the City for 2009 - 2011 The levy limit law allows for "special
levies" for specifically identified exceptions such as debt service on bonds. Special levies are added to
the base tax levy.
Burton explained the City's 2009 base allowable levy is $4,225,960; an increase of $169,043 (or 3.9
percent) over the 2008 base tax levy. The 2009 Proposed Budget contemplates a total tax levy of
$4,843,580; an overall increase of 5.02 percent over the 2008 total tax levy of $4,611,995. Special levies
for debt service comprise $617,620 of the total tax levy.
Burton then explained revenues from fees, licenses, and permits were expected to remain relatively
stable; building permit revenue is expected to decline. The budget proposes using $160,000 in General
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September 8, 2008
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Fund. reserves (in addition to tax and fee revenue); the use of reserves is in accordance with the adopted
General Fund Reserve Policy. Transfers to Capital improvement funds are programmed at $960,000 for
2009 (an increase of $15,000 from 2008); the increase is to the Park Capital Improvement Fund for park
projects and enhancements.
Burton went on to explain the key 2009 General Fund expenditures, not including capital transfers, are
programmed at $4,610,850 which reflects an approximate 5.4 percent increase from 2008. The key
expenditures are: police expenditures increased approximately $64,500 (or 6 percent); the debt service
component included in the Municipal Building Department for repayment of the bonds issued in 2008 to
renovate City Hall; an increase in motor fuel costs (in particular for Public Works); salary adjustments
(budgeted salaries include a 3 percent economic adjustment for non-union employees and a 2 percent
increase in January and July for union employees) and insurance adjustments (total insurance premiums
are estimated to increase 10 percent with the City's portion of a frill-time employee's insurance cost
proposed to increase to $800 per month; $30,000 for potential merit increases; and, a contingency line
item representing the unallocated levy available in the amount of $132,288 in the Mayor and Council
Department pending disposition.
Burton noted Council can continue to have budget work sessions throughout the fall. The Pay2009
Proposed Tax Levy can be decreased after it is certified, but it can not be increased. She stated the City
has received preliminary information from Hennepin County indicating the City's tax base would
increase approximately 4 percent for Pay2009 taxes.
Burton stated Staff recommends the Truth-In-Taxation process be followed as usual, using the timetable
and procedures set in place for the past few years. The Pay2009 Proposed Tax levy has to be certified no
later than September 15, 2008. The State Legislature designated Monday, December 1, 2008, as the
suggested date the Truth-In-Taxation public hearing be held. If necessary, a continuation hearing would
be held on December 8, 2008. The City Council would approve and adopt the final budget on December
8, 2008.
Burton then stated Staff recommends Council approve the resolution "Setting the 2009 Proposed General
Fund Budget and the Proposed 2008 Property Tax Levy, Collectible in 2009". Staff will then certify this
budget and levy as requirement before the September 15, 2008, deadline.
Councilmember Woodruff stated the August 25, 2008, City Council was video recorded and it is
accessible on the Lake Minnetonka Communications Commission's website. During that work session
the draft 2009 General Fund Budget was again discussed and he encouraged people interested in the
details of the budget to view that work session. He reiterated some of the statements made by Director
Burton. He then stated he full well expected the adopted 2009 General Fund Budget to reflect an increase
which is well below the 3.9 percent levy limit (not including the special levies), and with the special
levies included perhaps considerably well below 3.9 percent. He commented the City has until December
15, 2008, to certify the Pay2009 total tax levy and 2009 General Fund Budget to Hennepin County. He
stated the proposed budget includes the use of General Fund reserves (for things such as roadway
improvements), as was done in 2007 and 2008; the City had accumulated more reserves than needed
based on State guidelines and the recommendation of the City's auditor. There was a modest increase to
the General Fund reserves after 2007 year-end.
Mayor Lizee thanked Councihnember Woodruff for his comments. She stated a copy of the proposed
2009 General Fund Budget is on file at the City for residents to review.
SHOREW®®D CITI' C'®UNC1L REGiJI_,Al~ 1~EE'TING MINUTES
September 8, 2008
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Woodruff moved, Bailey seconded, Adopting RESOLUTION NO. 08-061, 6GA Resolution Setting
the 2009 Proposed General Fund Budget and Approving the Proposed 2008 Property Tax Levy
Collectible in 2009." Motion passed 5/0.
B. Set Truth-in-Taxation Hearing Dates
Turgeon moved, Wellens seconded, Adopting RESOLUTION NO. 08-062, "A Resolution Setting
the Truth-In-Taxation Public Hearings on the Proposed 2009 Budgets and the 2009 Property Tax
Levy." Motion passed 5/0.
C. Authorize Expenditure of Funds for a Bench at Gideon Glen
Director Nielsen explained in 2000 the City purchased the property now known as Gideon Glen as a
conservation open space with financial assistance from the Minnehaha Creek Watershed District
(MCWD). He explained Tom Simms, the seller of the property, sold the land to the City for a reduced
price; in return he received credits for partially gifting the land. As part of the purchase agreement the
City agreed to install a memorial bench recognizing the contribution from the Simms family to the
Gideon Glen project. Installation of the bench is one of the last remaining items to be completed as part
of the project; there are also some maintenance issues.
Nielsen stated no specific money was budgeted for the purchase and installation of the bench. Therefore,
Staff requests authorization to cover anot-to-exceed amount of $1,000 out of the Storm Water Utility
Fund, noting Staff thinks the cost will be less than that. Miles DelBusso, a resident Boy Scout, will
donate some free labor to this project for his Eagle Scout project. After the bench is installed, Staff
proposes Mr. DelBusso attend a Council meeting to receive recognition for his work. He commented that
its Staff's desire to have the bench installed this month.
Nielsen then stated Staff and Mr. Simms agreed to the following language for a small plaque to be
mounted on the bench: "In appreciation to the Thomas Simms Family for its contribution to the Gideon
Glen project."
Director Brown stated Staff had discussions about expanding the scope of Mr. DelBusso's project or
having other Boy Scouts do a project to catalogue the planting tubes and document the state of each
planting (i.e., did the plant survive or does it need to be replaced). He explained the maintenance
agreement with the MCWD for the Gideon Glen area is coming do and the City needs to have
appropriate documentation of the status of the plantings in the area.
Councilmember Turgeon stated the entrance area needed to be improved. Director Nielsen stated the City
had been told it would take 2 - 3 years for the plantings to become established. Turgeon stated there was
mold in some of the tubes. There appeared to be more weeds than trees visible in the tubes and it was
difficult to determine what was in some of the tubes.
Mayor Lizee stated the MCWD had previously stated it would provide the Council with update reports
on the status of the plantings. She suggested the MCWD make a site visit to the Gideon Glen area and
report back to Council. She commented that the Rotary had worked with the City of Excelsior to install a
bench at the War Memorial in Excelsior.
Councilmember Woodruff stated he was okay with the bench, but he was astounded with the not-to-
exceed cost of $1,000. He questioned who will decide where the bench will be located, and suggested the
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September 8, 2008
Page 5 of 6
entrance area as one possibility. He then had Staff run a slide show of pictures he took of the Gideon
Glen area over the past weekend. The pictures showed the following: an area where there is a stagnant
pond where people have thrown tires near that pond, and the area to the west of the pond eroding; four
areas with tubes some of which included plantings and others did not; an area where there is a metal
fence post and silt fence that should have been removed; other areas where there is silt fence that should
have been removed; and an area with a dead deer.
Mayor Lizee asked Councilmember Woodruff if he had shared his findings with the MCWD, to which
Woodruff responded he had only taken the pictures two days ago.
Councilmember Woodruff suggested Staff meet with the MCWD to define maintenance responsibilities.
In response to a question from Councilmember Wellens, Director Nielsen stated the only outstanding
expenses for the project were for the bench and a sign.
In response to a question from Councilmember Bailey, Director Nielsen stated Mr. DelBusso will receive
supervision.
Woodruff moved, Bailey seconded, authorizing the expenditure of funds out of the Storm Water
Utility Fund for the purchase and installation of a memorial bench at Gideon Glen recognizing the
Thomas Simms Family for an amount not-to-exceed $1,000.
Administrator Heck stated when an Eagle Scout project was done in Lauderdale the Scout received
supervision from a Senior Scout Master and got signoff from the sponsor.
Director Brown explained because the MCWD let the construction contract for the project the MCWD
and the contractor are responsible for many of the items just discussed. Staff will contact the MCWD.
Motion passed 5/0.
10. ENGINEERING/PUBLIC WORKS
Director Brown explained Staff has lead a number of meetings with regard to the SE Area Water Tower
rehabilitation. The cellular carriers with antennas on the Tower will likely bring in temporary cellular
facilities called cellular on wheels. The City will communicate what the public should expect to see
during the project via the City's web page and newsletter. People will begin to see fairly dramatic
changes in the area of the Tower in the near future. He will have a slide presentation for the next Council
meeting. He noted this will be a fast paced project.
Engineer Landini stated roadway striping should being sometime during the week
11. STAFF AND COUNCIL REPORTS
A. Administrator & Staff
1. City Hall Construction Update
Administrator Heck stated City Hall construction will begin this week, in particular with drain the work.
He then stated the City had received the Lake Minnetonka Communications Commission's proposed
S~IOREW®®D CITY COUNCIL REGULAR MEETING MINUTES
September 8, 2008
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2009 budget. He went on to state there will be a closed door session at the next Council meeting with
George Hoff regarding law suits. Attorney Keane stated the City received the order and judgment in
favor of the Upper Minnetonka Yacht Club on the claims it brought against the City. The District Court
ruled and held invalid the City's amendment to the UMYC's conditional use permit. The UMYC did not
prevail on its federal 1983 claim. The City's defense counsel will provide a complete report at the next
City Council regular meeting.
B. Mayor & City Council
Councilmember Woodruff stated he expected the last meeting of the Association of Metro Cities on
revenue and taxation policies to be held on September 9, 2008. He explained Administrator Heck had
forwarded copies of the draft policies to the Councilmembers and he asked if the Councilmembers had
any feedback. He received none. He stated the Council will have an opportunity to vote on the entire
package at a later date.
Mayor Lizee stated she had attended a very successful Apple Day event in Excelsior on September 6,
2008.
12. ADJOURN
Turgeon moved, Woodruff seconded, Adjourning the City Council Regular Meeting Session
Meeting of September 8, 2008, at 7:33 P.M. Motion passed 5/0.
RESPECTFULLY SUBMITTED,
Christine Freeman, Recorder
ATTEST:
Christine Lizee, Mayor
,!
~r.-&r'a Hec~~-(Cizy Administrator/Clerk