120108 CC Spec Mtg Min
CITY OF SHOREWOOD 5735 COUNTRY CLUB ROAD
CITY COUNCIL SPECIAL MEETING SOUTHSHORE CENTER
MONDAY, DECEMBER 1, 2008 7:00 P.M.
MINUTES
1. CONVENE CITY COUNCIL SPECIAL MEETING
Mayor Lizee called the meeting to order at 7:03 P.M.
A. Roll Call
Present. Mayor Lizee; Councilmembers Bailey, Turgeon, and Woodruff; City Administrator
Heck; Finance Director Burton; Director of Public Works Brown; and Engineer Landini
Absent: Councilmember Wellens
B. Review Agenda
Mayor Lizee requested approval of check #47539 to the Sensible Land Use Coalition for an amount of
$215 be discussed under Item 4, Other.
Woodruff moved, Turgeon seconded, approving the agenda as amended. Motion passed 4/0.
2. TRUTH IN TAXATION PUBLIC HEARING
A. Staff Presentation
Councilmember Bailey suggested that because there was no one present in the audience for the Public
Hearing, Staff forego giving a formal 2009 Budget Presentation. He requested a copy of the Presentation
be entered into the public record. He noted Council has a thorough understanding of the City's 2009
General Fund and Enterprise Funds Budgets because of the numerous budget discussions it has had.
Bailey moved, Woodruff seconded, approving a copy of the 2009 Budget Presentation be entered
into public record and that Staff forego giving a formal presentation at this meeting. Motion
passed 4/0.
Councilmember Woodruff made the following clarifications. The 2009 budget for police services reflects
the costs for South Lake Minnetonka Police Department to provide animal control services; this change
was implemented in 2008. With regard to the budget for fire services, he explained it actually reflects a
reduction in the debt service payment for the Excelsior Fire District (EFD) public safety facility; the EFD
operating budget was not cut.
Director Burton asked Council if there were any further questions or comments with regard to the 2009
budgets.
In response to a question from Councilmember Turgeon, Director Burton explained that all the changes
discussed at the November 24, 2008, Council work session regarding the 2009 General Fund Budget
have been incorporated into the Budget presented this evening.
SHOREWOOD CITY COUNCIL SPECIAL MEETING MINUTES
December 1, 2008
Page 2 of 3
B. Public Hearing
Seeing no residents present at the Public Hearing this evening, Mayor Lizde opened and closed the Public
Hearing at 7:06 P.M.
C. Council Deliberation/Decision to Reconvene
Turgeon moved, Woodruff seconded, there is no need to reconvene the Public Hearing on the 2009
Budgets on December 8, 2008. Motion passed 4/0.
3. CAPITAL IMPROVEMENT PROGRAM (CIP) PROJECT DISCUSSION
Administrator Heck stated he would have Directors Burton and Brown address this Capital Improvement
Program (CIP) item as they had worked very hard on the CIP.
Director Burton stated Council had the ability to review and discuss various components of the CIP at
different times throughout 2009 budget discussions. The CIP prepared is for 2008 - 2012 and it lists all
the capital projects currently planned for that time frame. She asked Council if it had any comments or
changes, in articular for 2009. She noted this document will be presented to Council for approval at its
December 8 meeting.
In response to a question from Councilmember Turgeon, Director Brown affirmed the $10,000 in the
Equipment Replacement Fund for a speed awareness display was sufficient to cover the cost of the unit
plus taxes and shipping.
Director Brown explained that over the years he has attempted to increase the useful life of equipment.
For example, the service life for dump trucks increased to 15 years from 10 years, noting the current cost
for those trucks is $150,000 - $175,000. The City purchased a used water truck and a used jetter. Because
of things such as that, the Fund is able to cover occasional minor cost overages for purchases.
Councilmember Turgeon stated because of the financial troubles for the three large U.S. automakers, the
City may be able to purchase new trucks now for a very reasonable price. If the City was in need of
replacing a pickup truck (e.g., a Ford L8000 or L9000) it may be prudent for Staff to research the cost of
replacing that type of vehicle in the near future and adjust the equipment replacement schedule. She
commented she did not think the pricing and/or financing for those types of vehicles was going to get
much lower.
Councilmember Woodruff stated with regard to the Equipment Replacement Fund he suggested all of the
planned replacements not be done in the first half of 2009, but to wait and see how the City's tax
collection goes. Director Brown stated it takes Staff time and effort to make an equipment purchase;
historically those purchases are made later in the budget year because of other demands on Staff's time.
Brown noted he hoped to have an equipment purchase recommendation ready for Council consideration
at its December 8 h meeting.
Director Brown stated most of the City's equipment purchases are made through State contracts; those
prices are substantially less than retail prices.
Councilmember Woodruff questioned if Staff really believed the Park Commission would be able to
complete all of the parks projects listed in the CIP for 2009 for a total cost of $147,000. Director Brown
stated that although the project list is aggressive, Staff heard from both the Council and the Park
Commission that they wanted to make improvements to the City's parks.
SHOREWOOD CITY COUNCIL SPECIAL MEETING MINUTES
December 1, 2008
Page 3 of 3
Councilmember Bailey stated the Enterprise Budget reports show beginning cash balances, revenues,
expenditures and ending cash balances. He requested Council be provided that same information for the
CIP. Director Burton stated that CIP reports will show that information. Bailey stated that when a project
is considered for approval it would be prudent for Council and Staff to review CIP financial information.
Director Brown stated when preparing a 20-year capital improvement plan he heeded Council's
suggestion and attempted to minimize significant fluctuations in expenditures from year to year.
Councilmember Woodruff commented it is much easier to budget and levy taxes when expenditures are
relatively consistent from year to year. Director Burton stated if a project is identified as extremely
important, there is usually a way to adjust project timelines so that particular project can be funded.
Councilmember Bailey stated his two areas of funding concerns related to equipment replacement and
local street reconstruction and maintenance: he was comfortable with having an expenditure placeholder
for the Lake Mary Outlet Project if it was not a commitment to do that project. He wanted to have
significantly more discussion about that project. Director Burton stated each project in the CIP will be
discussed with Council prior to it being presented to Council for consideration. Bailey cautioned that
sometimes an expenditure placeholder becomes interpreted as a commitment to do a project.
Council directed Staff to include the 2008 - 2012 Capital Improvement Program on the December 8,
2008, Council meeting agenda for approval.
4. OTHER
Mayor Lizee requested approval of check #47539 to the Sensible Land Use Coalition for an amount of
$215 for Director Nielsen to attend the Sensible Land Use Coalition program titled Twin Cities Housing
2008 Report 2009 Outlook scheduled for December 10, 2008.
Bailey moved, Woodruff seconded, approving check #47539 to the Sensible Land Use Coalition for
an amount of $215. Motion passed 4/0.
5. ADJOURN
Turgeon moved, Bailey seconded, Adjourning the City Council Special Meeting of December 1,
2008, at 7:18 P.M. Motion passed 4/0.
RESPECTFULLY SUBMITTED,
Christine Freeman, Recorder
y ~N U~
Christine Lizee, Mayor
ATTEST:
Bria eck, C' dministrator/Clerk