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120808 CC Reg MinCITY OF SHOREWOOD CITY COUNCIL REGULAR MEETING 5735 COUNTRY CLUB ROAD SOUTHSHORE CENTER MONDAY, DECEMBER 8, 2008 7:00 P.M. MINUTES 1. CONVENE CITY COUNCIL REGULAR MEETING Mayor Lizee called the meeting to order at 7:01 P.M. A. Roll Call Present. Mayor Lizee; Councilmembers Turgeon, Wellens and Woodruff, Attorney Keane (arrived at 7:28 P.M.); City Administrator Heck; Finance Director Burton; Planning Director Nielsen; Director of Public Works Brown (arrived at 7:20 P.M.); and Engineer Landini Absent: Councilmember Bailey B. Review Agenda Wellens moved, Turgeon seconded, approving the agenda as presented. Motion passed 4/0. 2. APPROVAL OF MINUTES A. City Council Executive Session Minutes, November 24, 2008 Woodruff moved, Turgeon seconded, Approving the City Council Executive Session Minutes of November 24, 2008, as presented. Motion passed 4/0. B. City Council Work Session Minutes, November 24, 2008 Turgeon moved, Wellens seconded, Approving the City Council Work Session Minutes of November 24, 2008, as amended in Item 2, Page 3, Paragraph 7, Sentence 3 change "Enchanted and Phelps Islands" to "Enchanted and Shady Islands". Motion passed 4/0. C. City Council Regular Meeting Minutes, November 24, 2008 Wellens moved, Turgeon seconded, Approving the City Council Regular Meeting Minutes of November 24, 2008, as amended in Item 2.A change "It was decided it was not necessary to spend the 2008 planned capital outlay of $100,000 in order to increase the fund balance for 2009 projects." to "It was decided it was not necessary to spend the 2008 planned capital outlay of $100,000. The result being an increase of the fund balance for 2009 projects."; in Item 8.C, Page 13, Paragraph 5, Sentence 6 change "A series of culverts with be installed" to "A series of culverts will be installed"; in Item 9.A, Page 15, Paragraph 7 change "Councilmember Koblick" to Commissioner Koblick"; in Item 9.11, Page 16, Paragraph 5, Sentence 2 change "would be wise to take it of the City's tax rolls" to "would be wise to take it off the City's tax rolls"; in Item 11.11, Page 19, Paragraph 1, Sentence 1 change "Councilmember Woodruff stated he attended" to "Councilmember Woodruff stated he viewed the recording of"; and in Item 11.13, Paragraph 2, SHOREWOOD CITE' COUNCIL REGULAR MEETING MINUTES December 8, 2008 Page 2 of 14 after Sentence 3 add "He stated it was his recollection that the 2 - 3 year consecutive requirement would also apply to a mandatory contribution." Motion passed 4/0. D. City Council Special Meeting Minutes, December 1, 2008 Woodruff moved, Wellens seconded, Approving the City Council Special Meeting Minutes of December 1, 2008, as amended in Item 4, Page 3, Paragraph 2, Sentence 2 change "Motion passed a/0." to "Motion passed 4/0." Motion passed 4/0. 3. CONSENT AGENDA Mayor Liz& reviewed the items on the Consent Agenda. She noted under verified claims check #47638 was added for League of Minnesota Cities Insurance Trust for an amount of $70,096. Turgeon moved, Woodruff seconded, Approving the Motions Contained on the Consent Agenda and Adopting the Resolutions Therein. A. Approval of the Verified Claims List B. December 2008 Council Meeting Schedule C. Setting the Date for the Storm Water Pollution Prevention Program (SWPPP) Public Information Meeting D. City Clerk's License List E. Authorize Expenditure of Funds for 800 Megahertz Radios F. Adopting RESOLUTION NO. 08-086, "A Resolution Approving the Plat of Petron 2ND Addition for Karen Petron, 4845 and 4865 Suburban Drive." G. Adopting RESOLUTION NO. 08-087, "A Resolution Vacating Part of Suburban Drive" and RESOLUTION NO. 08-088, "A Resolution Vacating Part of Sunset Lane". H. Adopting RESOLUTION NO. 08-089, "A Resolution Approving Subdivision of Real Property for Milton Seifert, 6085 Lake Linden Drive." Motion passed 4/0. 4. MATTERS FROM THE FLOOR There were no matters from the floor presented this evening. 5. REPORTS AND PRESENTATIONS A. Recognition of Service for Council Member Martin Wellens SHOREWOOD CITY COUNCIL REGULAR MEETING MINUTES December 8, 2008 Page 3 of 14 Mayor Lizee stated this evening's meeting is Councilmember Wellens' last official meeting as a member of the Council. She presented Wellens with a plaque in appreciation for his four years of dedicated service as a Councilmember. She thanked Wellens for his service. Councilmember Wellens thanked Mayor Lizee. 6. PUBLIC HEARING None. 7. PARKS Mayor Lizee stated there had not been a Park Commission meeting since the last City Council regular meeting, noting a meeting was scheduled for December 9, 2008. 8. PLANNING Director Nielsen reported on matters considered and actions taken at the December 2, 2008, Planning Commission meeting (as detailed in the minutes of that meeting). 9. GENERAL/NEW BUSINESS A. Approving the 2009 Budget and Approving the Property Tax Levy Collectible in 2009 Mayor Lizee stated the meeting packet contained a proposed resolution which approves the final 2009 Budget and the 2008 Tax Levy collectible in 2009. She explained the proposed budgets reflect a great deal of discussion by and direction from Council. On September 8, 2008, Council approved the Proposed 2009 Budget, which was certified to Hennepin County. The City held the Truth-in-Taxation public hearing on December 1, 2008, to discuss and receive public comment on the proposed budget and tax levy; the Council determined that no continuation of the public hearing was necessary and it directed Staff to prepare resolutions to adopt the final 2009 budget and tax levy. Wellens moved, Woodruff seconded, Adopting RESOLUTION NO. 08-090, "A Resolution Adopting the 2009 Budgets and Approving the 2008 Property Tax Levy Collectible in 2009." Councilmember Woodruff stated the levy increase is 3.6 percent. Motion passed 4/0. B. Establishing the 2009 Pay Scale and City Insurance Contribution Mayor Lizee stated the meeting packet contained a proposed resolution revising the City's Wage and Salary Chart for 2009 and setting the monthly employer insurance contribution. She noted Council has discussed this topic many times. The City's wage and salary chart reflects a 3 percent economic adjustment increase for non-union staff in January and the City's contribution toward the employee insurance will be set to a maximum of up to $800 per month per employee for 2009. SHOREWOOD CITY COUNCIL REGULAR MEETING MINUTES December 8, 2008 Page 4 of 14 Turgeon moved, Wellens seconded, Adopting RESOLUTION NO. 08-091, "A Resolution Revising the City's Wage and Salary Range Chart for 2009- and Setting the Monthly Employer Contribution Toward the Monthly Insurance Premium for City Employees." Councilmember Turgeon stated the contract with the City's union personnel expires in 2009. She explained the City has some employees that are paid an extra $1.00 per hour if they have specific certifications or training, and she requested additional pay for things like that be made consistent for all union employees. Motion passed 4/0. C. Authorizing the Transfer of Funds Wellens moved, Woodruff seconded, Adopting RESOLUTION NO. 08-092, "A Resolution Authorizing the Transfer of Funds." Motion passed 4/0. D. Approval of the 2008-2012 Capital Improvement Program Administrator Heck stated the Capital Improvement Program (CIP) for 2008 - 2012 included in the packet, includes the changes requested by Council during its December 1, 2008, work session meeting. The projects identified for 2009, in particularly the large projects, will be discussed in detail with Council prior to Staff asking for authorization to move forward with a project. Wellens moved, Woodruff seconded, Adopting RESOLUTION NO. 08-093 "A Resolution Adopting a Capital Improvement Program for the Years 2008 - 2012." Motion passed 4/0. E. Going out of Business Sale Director Nielsen stated at its October 27, 2008, work session, Council directed Staff to research the City's current ordinance pertaining to businesses that go out of business. The issue was raised by a business owner in the City who was trying to go out of business; this owner thought the inventory provisions in the City Code were cumbersome. The provisions of the City Code Chapter 307 were adopted in 1987 on a 4-to-1 vote. Based on meeting minutes, it appears the ordinance was adopted because of an issue of misrepresentation. Nielsen explained Staff examined ordinances for 16 cities regarding this topic. Minneapolis was the only other city that has a "Going Out of Business Sales" ordinance, noting the City's ordinance and the Minneapolis ordinance are word-for-word identical. Minneapolis' ordinance has been in effect since the mid 1970s. He commented the City of St. Paul has a much shorter ordinance pertaining to "close-out- sales". He stated signage may have been an issue when the ordinance was adopted in 1987; the current signage code addresses the issues that existed back then. He commented lie was not sure if the City ever needed to use the ordinance. Nielsen stated Staff thinks the regulations are outdated and unnecessary. Staff took the liberty of preparing an ordinance repealing Chapter 307 for Council's consideration. Wellens moved, Turgeon seconded, Approving ORDINANCE NO. 454, "An Ordinance Amending the Shorewood City Code to Repeal Regulations Pertaining to Going Out of Business Sales." Motion passed 4/0. SHOREWOOD CITY COUNCIL REGULAR MEETING MINUTES December 8, 2008 Page 5 of 14 F. Southshore Center Lease and Cooperative Agreement Mayor Lizee noted that Tom Anderson, President of the Friends of the Southshore Community Center, was present this evening. Administrator Heck stated a number of months ago a Committee was established to identify a way to continue the operation of the Southshore Center (the Center) and programs offered at the Center without continued financial support by the five member cities (the Cities), and to identify who was responsible for short-term and long-term care of the facility. The Committee was to complete its charge by the end of 2008. Heck explained the Committee agreed to a proposed solution which changes the lease arrangement the Cities have with the Friends of the Southshore Center (the Friends). Under the proposed lease the Cities will be responsible for the capital infrastructure of the facility. Under the original lease the Friends were responsible for all operations and maintenance of the Center. When Council discussed the proposed lease at its November 10, 2008, meeting it requested the lease be modified to more specifically identify the Cities' responsibilities and the Friends' responsibilities regarding maintenance and repairs. An attachment to the lease amendment has been prepared to address that request. He noted a minor change to the attachment; the Friends would be responsible for replacement of kitchen appliances. Heck then explained there was also a proposed amendment to the Cooperative Agreement between the Cities. It would require the Cities to maintain a Capital Reserve Fund for capital maintenance and improvements. The Fund would be administered by Shorewood, and it would be established with a one- time $15,000 contribution from the Friends. Each member cities' contribution to the Fund would be determined using the same percent used to determine its contribution for the construction of the facility. The amendment would establish a Governing Board compromised of an elected official from each member city. One of its responsibilities would be scheduling capital repairs of the facility and disbursement of funds. The exit conditions in the Agreement would also be changed; if a city chooses to withdraw from the Agreement it would be entitled to receive its original investment back at the time the Agreement was dissolved and the facility sold. Heck stated per Council's request the Friends provided profit and loss information for 2008 year-to-date actuals and year-end forecasts for 2008 and 2009. He noted the meeting packet contained copies of the amendments and the financial information. He clarified that for ease of understanding, copies of the original lease and Cooperative Agreement were included with the proposed amendments reflected in the documents. The changes will not be made to the original docunnents; they will remain as separate amendments. He noted Mayor Lizee served on the Committee. He also noted that Excelsior had approved the amendments. Council first discussed the proposed third amendment to the lease agreement between the Cities and the Friends. Councilmember Woodruff's comments and concerns are as follows. ➢ The first paragraph of the lease should include an article number and lie thought it should be Article 34. ➢ The amendment should include a definition for "outside interest" because it's referenced in the amendment. SHOREWOO D CITY COUNCIL REGULAR MEETING MINUTES December 8, 2008 Page 6 of 14 ➢ He questioned who would be responsible for personal property; the amendment specifies the Friends only have to be responsible for liability insurance within the facility. He did not want the Cities to be responsible for personal property for the Friends or other renters. ➢ He expressed overall concern with how the responsibilities for insurance were defined, and he thought it would be difficult for an insurer to write an insurance policy based on how the responsibilities are divided up. For example, the Cities are responsible for insuring the sidewalk and the Friends are responsible for shoveling the sidewalk; he questioned who would be liable if someone was hurt on the sidewalk if it was not shoveled. ➢ He questioned what commitment the Friends would have to maintaining things (e.g., carpet) when it's not responsible for paying to replace them. ➢ The line item ballast repair should be removed from the lease attachment as ballasts cannot be repaired. ➢ He suggested ballast replacement should be a responsibility of the Friends. If a ballast can't be replaced it's the Cities responsibility to replace the fixture. ➢ He questioned how responsibility for items not identified in the list (e.g., the ceiling, wiring, etc.) would be determined; the responsibility list in the lease attachment is not all inclusive. ➢ He did not think the lease amendment included any provisions regarding the Friends subletting space in the facility (e.g.; who can the Friends sublet to and under what circumstances). ➢ He would not support approving the third lease amendment the way it was written. Councilmember Turgeon stated the amendment did not address who would be responsible for insurance for personal property of other parties renting space in the Center; it should be clarified to address that. The Cities should not be responsible for insurance for "outside interests" personal property. Because a City will only get its original investment in the construction of the Center back should they withdraw from the agreement, she suggested all five cities contribute equal amounts to the capital fund. She suggested the formal name of the Friends organization and the Center be made correct and consistent in the lease, the Cooperative Agreement and the conditional use permit. Also, any reference to the name and address of the firm providing legal services to Shorewood should be corrected to reflect the upcoming change in firms. Councilmember Wellens expressed concern that the Friends could rent space in the Center to outside. interests and possibly make a profit off rentals. He stated the taxpayers are subsidizing the facility yet they would not share in the profits, and the building is not being used for what it was intended for. He requested the amendment include a nondiscrimination clause; a clause where no particular group, including the seniors, get preferential use of the facility. A "true community center" would not grant a priority for use to any group. Mayor Liz& explained the seniors have traditionally used the Center during the day hours when it was not used by others, and the Friends hope to expand the use of the Center for school related activities. She stated the rental of the Center has not been discriminatory. Mr. Anderson's comments and clarifications are as follows. ➢ The original Cooperative Agreement developed in 1996 intended for the Cities to take over capital responsibilities for the facility. The left over construction finds would be SHOREWOOID CITY COUNCIL REGULAR MEETING MINUTES December 8, 2008 Page 7 of 14 placed in a capital fund. When there were no funds left over after construction, the responsibility for having the Cities take care of the capital needs was removed and the lease agreement was changed to make those costs the responsibility of the Friends. ➢ All the furnishings in the Center are owned by the Friends. ➢ The Friends contributed $100,000 to help finish the construction of the facility and to furnish the facility. ➢ The pad the building sits on belongs to the Cities, but the surrounding property belongs to Shorewood. Shorewood plows the driveway as its Shorewood's property. ➢ The intent in the lease amendment is for the Cities to be responsible for property and casual insurance for the structure. Personal liability insurance would be the responsibility of the Friends; the Friends would be responsible for the internal furnishings. Responsibility for things such as wiring and fixtures should be no different than under any other standard tenant/landlord arrangement. ➢ The bulk of the rentals of the facility have been for non-senior activities. The use by non- senior groups will increase substantially when Minnetonka Community Education (MCE) begins to use the facility for community activities other than senior activities. ➢ In most communities that have senior programs it's rare that seniors get to carve out something for themselves. ➢ Because of the Friends current financial situation it needs the City's support of the proposed amendments to help keep the Center operational. ➢ The language in the amendment can be clarified to ensure 5 - 10 years in the fixture that it is clear to other individuals who are involved. ➢ If the Friends and the Cities cannot reach agreement he questioned where the responsibility for the facility would lie if the Friends cease to exist. He also questioned who would pay the bills and coordinate activities. Attorney Keane stated the operational reality has been the Cities have secured the casualty and liability insurance through the League of Minnesota Cities (LMC) Insurance Trust. The responsibility for insuring for the contents of the facility has been the responsibility of the tenant because the personal property belongs to the tenant. He clarified the lease does address pre-approval of subletting of space in the Center, and it states that any subtenant relationship has to be consistent with the purpose/use clause of the lease. Administrator Heck stated it was his understanding Council wanted the section in the lease amendment regarding insurance modified to specify that insurance for furniture, fixtures and equipment (i.e.; movable furniture, fixtures or other equipment that are have no permanent connection to the structure) is the responsibility of the Friends. Also, when another organization or individual sublets space from the Friends, the Friends have to ensure there is documentation that states that party is responsible for their personal property. Council then discussed the proposed amendment to the Cooperative Agreement. Councilmember Woodruff's comments and concerns are as follows. ➢ He stated the statement "No member City shall use the Southshore Community Center as collateral or security for any bonded indebtedness." was added to Section 2, Ownership, and he recommended the words "bonded indebtedness" be removed. ➢ He suggested the Amendment address the Friends responsibilities for operating the Center and the processes for executing the responsibilities. SHOREW®®D CITY COUNCIL REGULAR MEETING MINUTES December 8, 2008 Page 8 of 14 ➢ He was not in support of Shorewood assuming responsibility for administering the Capital Reserve Fund. He wanted that responsibility to rotate among the Cities. The Excelsior Fire District's fiscal agent responsibilities are handled by a member city wider contract. ➢ He expressed concern that a member city could withdraw from the Cooperative Agreement without there being any sanction, and that city's residents could continue to use the facility. ➢ He recommended that a member city should forfeit its share in the facility if it withdraws from the Cooperative Agreement; the other member cities would have to assume responsibility for that city's portion of cost for capital maintenance and repairs. ➢ He stated there was no process identified for dissolving the Agreement. ➢ He said a new section is proposed to be added after Section 7 that would establish a Governing Board with eight specific responsibilities. From his high level perspective, it appeared the Agreement was similar to a joint powers agreement (JPA) and there was insufficient information to define how that JPA would work. He stated responsibility for authorizing payment of operational and capital expenditures was not addressed. Also, it did not identify how many of the member cities had to approve a capital project or any other decision before it could move forward. ➢ He was not ready to approve the amendment to the Cooperative Agreement the way it was written. Councilmember Wellens stated his only comment was all residents should be treated equally regarding the opportunity to use the Center and the costs to use it should be the same. Councilmember Turgeon expressed concern that a member city could choose to withdraw from the Cooperative Agreement and that the other member cities would be responsible for its portion of the capital costs. For Shorewood that would be 50 percent of that member cities' share of the cost. She stated she was not in support of a withdrawing city recouping its original investment or its residents still having the opportunity to use the Center. She then stated she thought MCE could bring a lot of good programs to the Center. She recommended the Friends and MCE ensure the residents continue to have an opportunity to use the Center for gatherings. Mayor Liz& explained the reason the Committee thought Shorewood should be responsible for administering the Capital Reserve Fund is the facility is located in Shorewood and Shorewood owned 50 percent of the facility. The Committee did not think it was efficient to rotate that responsibility. A Governing Board would be established to manage the use of the Fund. She stated the member cities have charged the Friends with finding adequate uses for the Center and to make it work for the community. Administrator Heck stated the Committee discussed the idea that if a member city chose to withdraw from the Cooperative Agreement then it would lose its original investment, but that penalty scenario was rejected. He clarified that Section 7 of the original Agreement states that two-thirds of the member cities must approve the dissolution of the Agreement, an amendment to the agreement, the sale of the Center, or the termination of the lease with the Friends. He thought that applied to other decisions also. Mr. Anderson's comments and clarifications are as follows. ➢ The Friends were asked to run the Center; therefore, the Cities should have trust in the Friends' ability to do so. ➢ The Friends would prefer to rent the Center and have the Cities manage the Center. SHOREWOOD CITY COUNCIL REGULAR MEETING MINUTES December 8, 2008 Page 9 of 14 The loss of block grant funds, the loss of United Way funds, and the loss of the Metropolitan Council Transportation Contract necessitated that the Friends and the Cities rethink the current approach to operating and funding the Center. The vendor who was running the programs at the Center in 2007 stated it would cost $60,000 a year more to do so in 2008. The Cities agreed to provide $25,000 in finding for 2008 only. ➢ During the last 15 months the Friends have presented the Committee with a number of proposals that identified ways to continue the operation of the Center and who would be responsible for short-term and long-term care of the facility. One of the proposals was the Friends would pay a monthly fee to rent the Center and the Cities would manage the facility; that proposal was rejected by some of the Cities. ➢ Some of the Cities stated they were not opposed to paying for capital maintenance and repairs of the facility, but the Cities did not want to pay for programs. ➢ The proposed landlord/tenant relationship limits the Cities liability and eliminates the voluntary contributions to the operation of the Center. The Friends are also proposing to make a one-time contribution of $15,000 to the Capital Reserve Fund out of its reserves. ➢ The Friends think the proposal is very fair and equitable. ➢ He stated there could be some clarifications made to the two amendments. ➢ It's critical that the Friends and the Cities reach an agreement soon. If not the Friends will have to cease its operations sometime during the first quarter of 2009 due to lack of funding. ➢ The Friends will have to pay approximately $30,000 to manage the MCE arrangement because there is no staff at the Center. Councilmember Woodruff stated it was his understanding that for 2009 the Cities would not make any contribution, capital or operating, and the Friends would make the initial $15,000 contribution to establish the Capital Reserve Fund. He then stated the Friends and the Cities already have a lease. He did not think there is any reason that the current lease situation could not remain in effect until clarifications have been made to the amendments for the lease and Cooperative Agreement. He did not understand why the Friends would have to cease operations in February 2009 if the amendments were not approved. Mr. Anderson explained if the Friends do not make the $15,000 contribution to the Capital Reserve Fund until an agreement is reached and if there are capital repairs made before the agreement is reached, then the Friends will have to pay for the repairs out of the $15,000. When an agreement is finally reached the Friends would no longer contribute the entire $15,000 because some of it would have already been spent. Mr. Anderson stated the Cities directed the resolution of this issue 15 months ago, and the Friends have made a very concerted effort to do so. He questioned what guarantee the Friends have that this issue will be resolved in 90 days. The Cities set the January 1, 2009, deadline for resolving the issue and the Friends have delivered what was asked. If the Cities want to continue to delay taking action then the Friends may have to consider doing other things. He strongly encouraged Council to consider what it would do with the Center if the Friends did not manage the operations of the Center. Councilmember Woodruff stated he was not saying he did not want to do the deal. The issue at hand was how to word the intricacies in the two amendments so there is a clear understanding of the responsibilities and accountabilities into the future. He anticipated that resolving what clarifications needed to be made to the amendments could be done by February 2009. He commented that Council first discussed the lease amendment at its November 10, 2008, meeting. SHOREW®®D CITY COUNCIL REGULAR MEETING MINUTES December 8, 2008 Page 10 of 14 Mr. Anderson stated he agreed with some of the clarifications recommended for the amendments. He then stated he could support Council providing direction to have staff clarify the document expeditiously so that Council could approve the document. If there is going to be discussion about whether or not there should be a Center than that could take a very long time to resolve. Councilmember Wellens stated Council had never been presented with a proposal to have a professional building manager manage the Center. He would be in support of that idea. Mr. Anderson stated at least two of the Cities stated they did not want to be in the property management business. Councilmember Woodruff stated he did not want to change the relationships described in the documents and amendments. He did want the amendments clarified and approved as soon as possible. Administrator Heck summarized what he understood had to be done before Council would consider approving the lease third amendment. The lease must be clarified to specifically state the Friends are responsible- for ensuring the contents in the facility. There has to be a clause in some document that informs any sublessor they are responsible for insuring their personal property. There also must be some type of operating policy to ensure there is equal opportunity for use of the facility. Heck stated it is basically impossible to have an all-inclusive list of where responsibility lies for repairing or maintaining components of the facility, and he expressed that concern when the list was first asked for. The attachment to the lease amendment states the list is not limited to the items on the list. Mayor Liz6e stated the Governing Board would request a yearly building inspection of the facility. The remaining life expectancy of capital items would be projected as part of that process, and that information would be used to prepare a capital improvement plan, Heck noted that the lease contains a requirement that the Friends have to have a qualified agency perform maintenance on things such as the HVAC system. Councilmember Woodruff suggested language be added to the lease third amendment to specify how maintenance and repair responsibilities for items not specifically listed will be determined. For example, the Friends and the Governing Board could determine that. Administrator Heck then summarized what he understood had to be done before Council would consider approving the Cooperative Agreement amendment. A major issue for Councilmenlbers Turgeon and Woodruff has to do with the termination clause for a member city; they thought a member city should lose its original investment if it withdrew from the Agreement. The process for approving claims from the Capital Reserve Fund needs to be documented. The process for administering the funds needs to be revisited such that the burden does not fall on Shorewood exclusively. Councilmember Woodruff suggested a clause be added that states if a member city chooses to withdraw from the Agreement then any financial obligations be settled at that time. Councilmember Turgeon suggested contributions to the Capital Reserve Fund be equally shared by the Cities. Councilmember Woodruff stated if Shorewood is responsible for 50 percent of funding capital maintenance and repairs it would be easy for the other member cities to approve expensive repairs because it would not cost them as much to have the repairs done. He did not think that was fair. He questioned if a super majority or maybe even all Cities should have to approve things like that. Attorney Keane stated withdrawal provisions were the most hotly discussed subject in 1996 when the Cooperative Agreement was being developed. At that time the five member cities were emphatic that SHOREWOOD CITY COUNCIL REGULAR MEETING MINUTES December 8, 2008 Page 11 of 14 they were making a one-time financial commitment to the Center; the commitment to fund its construction. They discussed that if there would be on-going financial contributions that had to be made and a city wanted to withdraw from the Agreement, they agreed that the city should not lose its original investment. The Cooperative Agreement does have similarities to a joint powers agreement. The Agreement does reference the JPA statute. In 1996 no one at that time wanted to call it a JPA; Councilmember Woodruff clarified that he was not advocating JPA language be included in the Agreement. Keane explained in 1996 no one wanted to discuss the need to have capital reserves for the long-term care and maintenance of the asset. The Cities were making a one-time commitment. The exclusion of long-term care and maintenance needs was the only way to reach a compromise among the Cities. He stated he did not think it was inappropriate to address the needs through an amendment to the Agreement. Woodruff moved, Turgeon seconded, directing Staff to make the clarifications requested to the amendments and continuing this consideration of the amendments to the January 12, 2009, City Council meeting. Mayor Lizee asked Mr. Anderson what the impact of delaying the approval of the amendments would be on the Friends. Mr. Anderson stated if the amendments were approved in early January 2009 there would not be a significant impact warranting the Friends to take action on. The Cities have historically contributed $15,000 - $40,000 a year to the Friends for Center operations. Because most of the Cities have indicated they would not make any contribution for 2009 the Friends will have a shortfall beginning 2009. In response to a comment from Councilmember Turgeon, Attorney Keane stated the relationship of the parties would not change until the amendments are approved. Mr. Anderson stated there will be a change in 2009 because the Cities will not make a voluntary contribution for Center operations and programs. Turgeon stated the Friends can bring MCE in or continue on with things the way they are, noting Shorewood would not make a contribution to the Friends. Administrator Heck stated the lease and Cooperative Agreement can be amended if two-thirds of the Cities approve the amendments. Motion passed 4/0. G. Legal Services Letter of Engagement Administrator Heck explained that at its November 10, 2008, meeting Council voted to appoint Kennedy & Graven as the new legal firm for the City with Mary Tietjen serving as the City Attorney. Per Council's request, Ms. Tietjen has provided a letter of engagement; a copy of the letter was included in the meeting packet. The letter covers the terms in the request for proposal (RFP) and is consistent with the proposal submitted by Ms. Tietjen. Heck stated Staff recommends Council approve the letter of engagement and authorize the Mayor and City Administrator to sign the letter. Wellens moved, Turgeon seconded, approving the letter of engagement submitted by Kennedy & Graven, Chartered, and authorizing the Mayor and City Administrator to sign the letter. SHOREWOOD CITY COUNCIL REGULAR MEETING MINUTES December 8, 2008 Page 12 of 14 Mayor Lizee stated Item 2.b in the letter states for non-routine work the law firm can bill different hourly rates based on what position was doing the work or the experience of the attorney. In Item 2.e it states the development rate also varies based on position and experience. Administrator Heck stated all firms that submitted a RFP specified a sliding rate. He explained the City Attorney will manage the case and the invoicing will identify the person doing the work and the rate. All firms also specified a higher hourly rate for development work than for non-routine work. Motion passed 4/0. H. Staffing Recommendation Administrator Heck stated Council had requested he evaluate the City's engineering staffing shortly after beginning his employment with the City. He expanded that to an evaluation of all staffing. He explained he discussed staffing with department heads individually and collectively to hear their perspectives. He also surveyed other cities' staffing levels. His recommendations are detailed in his memorandum to Council dated December 8, 2008. Heck highlighted his recommendations. Heck recommended eliminating the engineering technician position. Contract services will be used for inspection services. There is a Planning and Zoning Department staff person who is adept at mapping using the GIS mapping tool; the items that can be done on GIS will be handled by that individual. Heck explained he has spoken with Kristi Anderson, with Connnunity Ree Resources, about expanding that firms contract responsibilities with the City to include communication and liaison activities with the Park Commission. A staff person in the City office will assume the responsibility as the main staff contact person for the Park Commission and Community Ree Resources for park activities. Engineer Landini currently serves as the liaison for the Park Commission and liedoes a lot of research for and documentation of park related items. Although Landini does a great job, these proposed changes will allow Landini to spend more of his time on engineering activities related to roadway improvements, storm water management, etc. Heck then explained the one-third time communications coordinator position's hours would be increased to approximately 30 hours per week. The increase in hours should allow for improved consistency of communications on the City's website and in print, and it would allow the City to expand the use of the Lake Minnetonka Communications Commission (LMCC) for City-related cable programs. Also, this position would increase marketing efforts to expand the City's recycling and solid waste program (e.g., bring recycling to the City's parks). Heck went on to explain the staff time for City website development activities will be increased. This should allow the City to increase the number of services it offers on the website (e.g., scheduling facilities, completing interactive applications, etc.). Mayor Lizee thanked Administrator Heck and Staff for their efforts on this topic. In response to a comment from Councilmember Turgeon, Administrator Heck stated if Council agreed with his recommendations they would go into effect on January 1, 2009. Wellens moved, Woodruff seconded, authorizing the City Administrator to implement the staffing changes recommended in the Administrator's memorandum to Council dated December 8, 2008. SHOREWOOD CITY COUNCIL REGULAR MEETING MINUTES December 8, 2008 Page 13 of 14 Councilmember Woodruff stated lie wanted to have a better understanding of the benefits of the recommended changes, although he appreciated that would be a little difficult to do because this was a work-in-process. He then stated he was supportive of the concept. He expressed concern that the added costs for contracting for inspections and some other engineering related activities had not been identified in the memorandum. Administrator Heck explained for many projects the City already contracts for inspections. Approximately 10 - 15 hours per week of design work currently being done be staff would be done by this contractor; the rate would be $67 - $69 per hour. Some of the cost savings from the reduction in the full time engineering technician position will be used to cover these costs. He noted the costs for all of the proposed changes will not exceed the savings fl•om the reduction in one staff position. Motion passed 4/0. 10. ENGINEERING/PUBLIC WORKS A. Illicit Discharge Ordinance Engineer Landini explained Council discussed the draft model Illicit Discharge Ordinance at its October 27, 2008, meeting and the second draft of the Ordinance at its November 24, 2008, meeting. The proposed final draft Ordinance included in the meeting packet has been reviewed by the City Attorney and his comments have been incorporated. Landini stated Staff recommends Council approve an amendment to the City Code to address illicit discharge into the City's stormwater system. Woodruff moved, Wellens seconded, Approving ORDINANCE NO. 455, "An Ordinance Amending Title 900 of the Shorewood City Code Adding Chapter 907 Illicit Discharge into Stormwater System." Motion passed 4/0. 11. STAFF AND COUNCIL REPORTS A. Administrator & Staff 1. City Hall Construction Update Administrator Heck provided an update on the City Hall renovation. The building inspector will attend the weekly project meeting which is scheduled for Tuesday, December 9`". The electricians and audio visual personnel have installed the necessary drops for their related equipment. Sheet rocking was supposed to have begun earlier in the day. Director Brown stated the HVAC contractors were close to having phase 1 equipment ready for inspection, and phase 2 equipment installation would start in the near future. Brown also stated the fire suppression system was reviewed and approved. Heck stated at the December 9`" department head meeting 2008 accomplishments and 2009 draft goals will be discussed. A summary of 2008 accomplishments will be provided to Council early in 2009. In response to a question from Councilmember Woodruff, Administrator Heck stated a realtor brought people through the City-owned house earlier in the day and he was unsure if it was a rental or purchase viewing. Heck stated there had been one other group that toured the house. SHOREWOOD CITY COUNCIL REGULAR MEETING MINUTES December 8, 2008 Page 14 of 14 B. Mayor & City Council Councilmember Woodruff stated he attended a Lake Minnetonka Conservation District (LMCD) Exotic Species Task Force meeting on December 4"'. He was very impressed with the meeting; in particular the fact that representatives from the Army Corps of Engineer, the Minnesota Department of Natural Resources, the LMCD, the Lake Minnetonka Association (LMA), and the Three Rivers Park District were in attendance. The purpose of the meeting was to discuss technical aspects of the 2008 Eurasian Watermilfoil and curlyleaf pondweed three-bay treatment program results and the 2009 treatment plans. He explained the LMCD Board was scheduled to meet on December 10`x' to discuss who will be responsible for the managing the 2009 three-bay treatment program (the LMA, the LMCD, or both). At the Task Force meeting there was consensus to issue a results-oriented request for proposal (RFP) that specifies performance guarantees; the applicator will determine the specific treatments within certain boundaries. LMA Executive Director Osgood will draft the RFP. The next Task Force meeting is scheduled for February 2, 2009. Mayor Lizee stated a City Council Executive Session was held just prior to this Council meeting. The purpose of the meeting was to give the City Administrator his performance review. Administrator Heck is meeting Council's expectations. Heck will receive another review in June 2009. 12. ADJOURN Turgeon moved, Wellens seconded, Adjourning the City Council Regular Meeting of December 8, 2008, at 9:00 P.M. Motion passed 4/0. RESPECTFULLY SUBMITTED, Christine Freeman, Recorder ATTEST: Bria eck, Ci nistrator/Clerk a Christine Lizee, Mayor