Loading...
030909 CC Reg Min5735 COUNTRY CLUB ROAD SOUT S O E CENTER 7:00 P.M. 1. CONVENE CITY COUNCIL REGULAR MEETING Mayor Lizee called the meeting to order at 7:08 P.M. A. Roll Call Present. Mayor Lizee; Councilmembers Bailey, Turgeon, Woodruff and Zerby; Attorney Tietjen; City Administrator Heck; Finance Director Burton: Planning Director Nielsen; Director of Public Works Brown; and Engineer Landini Absent: None. B. Review Agenda Turgeon moved, Zerby seconded, approving the agenda presented. Motion passed 510. 2. APPROVAL OF MINUTES A. City Council Work Session Minutes, February 23, 2009 Woodruff moved, Turgeon seconded, Approving the City Council Work Session Minutes of February 23, 2009, as presented. Motion passed 510. B. City Council Regular Meeting Minutes, February 23, 2009 Zerby moved, Woodruff seconded, approving the City Council Regular Meeting Minutes of February 23, 2009, as presented. Motion passed 5/0. C. City Council Work Session Minutes, March 2, 2009 Woodruff moved, Bailey seconded, approving the City Council Work Session Minutes of March 2, 2009, as presented. Motion passed 5/0. 3. CONSENT AGENDA Mayor Lizee reviewed the items on the Consent Agenda. Turgeon moved, Woodruff seconded, approving the Motions Contained on the Consent Agenda and Adopting the Resolutions Therein. A. Approval of the Verified Claims List, checks numbered 48018-48110, totaling $288,140.68. SHOREWOOD CITE` COUNCIL, REGULAR MEETING MINUTES March 9, 2009 Page 2 of 14 B. Adopting RESOLUTION NO. 09-013, "A Resolution Appointing Brian Heck, City Administrator/Clerk, as the Data Practices Responsible Authority." C. Special Event Permit for Knewtson Health Group 5K Run (This was moved to Item I0.17 under General/new Business.) D. Storm Water Pollution Prevention Program Amendment (This was moved to Item IO.G under General/new Business.) E. Phone and Data Services Agreement F. Park Consultant Services Contract Motion passed 5/0. 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 There was no report because there had not been a Park Commission meeting since the last City Council regular meeting. A meeting is scheduled for March 10, 2009. 8. PLANNING Commissioner Hutchins reported on matters considered and actions taken at the March 3, 2009, Planning Commission meeting (as detailed in the minutes of that meeting). He elaborated on the discussion that occurred with regard to South Tonka Little League's (STLL's) request for text amendments to the City's Zoning Code that would allow it to display commercial advertising signs on the ball-field fences of the two fields in Freeman Park. He noted the Planning Commission unanimously voted to recommend the request be denied and it recommended Council consider having the City fund more of the maintenance of and improvements to the two ball fields. In response to a question from Mayor Lizee, Director Nielsen explained the applicant is charged a fee to process requests to cover staff time, publishing costs, etc. The applicant is not charged by the number of text amendments that would be required. The application fee was $600, but because there has been a lot of staff time involved in dealing with this request STLL was asked to deposit additional money. He commented that the mailing costs to notify surrounding property owners was over $100. He stated when an applicant signs an application they sign an agreement that they will pay the City's costs. 9. ENGINEERING/PUBLIC WORKS A. Water Tower Change Order Director Brown stated the meeting packet included a proposed change order for the SE Area Water Tower Rehabilitation Project for an amount of $4,951.13. He noted this is the first change order for the project. The change order involved the need to install temporary heaters in the Tower to help the epoxy coating cure in the cold weather. The change order represents a 1.3 percent increase to the contract. Staff recommends Council adopt the resolution approving the change order and authorizing the final acceptance of the project subject to the final documentation being submitted. Turgeon moved, Zerby seconded, adopting RESOLUTION NO 09-015, "A Resolution Approving Change Order 1 for the S.E. Area Water Tower Rehabilitation Project and Accepting Final Improvements, City Project No. 05-04." Motion passed 510. 10. GENERAL/NEW BUSINESS A. Southshore Center Administrator Heck explained in mid-February 2009 the Friends of the SOLlthshore Community Center (the Friends) dissolved. The Friends had been responsible for managing the operations of the Southshore Center (the center) prior to dissolving. This placed that responsibility on the five owners of the facility which are the Cities of Deephaven, Excelsior, Greenwood, Shorewood and Tonka Bay (the Cities). The Cities have individually been discussing what to do with the facility since that time. Heck stated Council had again discussed this topic during its work session immediately preceding this meeting, and he had a few points he wanted to slake with regard to questions asked or comments made during that work session. He explained that to date the Cities have not had the opportunity to meet and discuss the two options Council discussed during its February 23'd meeting. Council wanted to keep the Center operational during March to give the Cities time to discuss what they wanted to do with the facility in the long term, and it wanted Staff to determine how to market the facility for sale. The expense and revenue projections he prepared for 2009 - 2012 do not include $60,000 for management of the Center because he does not know what it will cost for another organization to manage the Center. The $59,000 miscellaneous expense incurred by the Friends in 2008 was for Senior Commumity Services (SCS) staff, SCS had full time person managing programming. A representative from Community Rec Resources has indicated that organization could manage programming services for substantially less then $60,000. Heck then explained South Shore Senior Partners (SSSP) is running senior programs similar to the way the Friends had done so in the past. He has had preliminary conversations about reworking an agreement with SSSP, but to date he has not be directed to do so. A letter from the City to SSSP regarding the invalid rental agreement with the Cities indicated the City was open to negotiating a different arrangement with SSSP if it was still interested in renting space. Greenwood and Tonka Bay indicated SHOREWOOD CITY COUNCIL, REGULAR MEETING MINUTES March 9, 2009 Page 4 of 14 similar positions in their respective letters to SSSP. He has had preliminary conversations with Minnetonka Community Education (MCE) and with the church that is currently renting the facility about possibly managing the Center. Neither Council nor any of the other four Cities have given him direction to take the lead to negotiate a contract with other potential management organizations, develop a business plan for the continued operation of the Center, get a commercial appraisal for the Center or anything else related to the future of the Center. He commented that per the Cooperative Agreement between the Cities, Shorewood would have to provide access to the facility. Heck stated his personal opinion is rushing to sell the facility may not be in the best interest of the community and it may no be the best public policy. He commented the Cities have had sufficient time to discuss financing of the facility when the Friends organization was still in existence. The entire operation of the Center changed significantly when the Friends dissolved. The Cities' councils have not had the opportunity to discuss continued operations of the Center, providing senior services at other locations or the potential sale of the facility. Mayor Liz& stated a meeting of the SOLIthShore Center working group is scheduled to meet on March 10, 2009, to discuss the future of the Center. The group consists of the Cities' administrators or managers and one elected official from each city. Administrator Heck stated the City has three options to consider. The first is to determine a way to continue operations at the Center. The second is to market the facility for sale on the open market including consideration of selling it to the Lake Minnetonka Communications Commission (the LMCC has expressed interest in purchasing the facility). Lastly, the City can withdraw from the Cooperative Agreement and leave the future of the Center to the other four Cities to address. Councilmember Zerby stated it's been approximately 30 days since the Cities received notification from the Friends that it dissolved. He thought it would not be prudent to rush a sale of the facility. He commented Council had chosen to wait to consider selling the City-owned property until March 2009 (if the City-owned house could not be rented) with the hope market conditions would improve. He questioned what the reason is to liquidate the facility so rapidly when a rapid sale approach was not considered for the City-owned property. He thought it prudent to take time to solicit public input about the future of the Center. In response to a comment fi•om Councilmember Bailey, Administrator Heck stated it is his understanding the LMCC needs the Cities to decide if they want to sell the LMCC the facility by month-end. Bailey stated he supports having continued discussion, but a deadline for completing discussions needs to be determined (whether that be six months, one year, or one month). He did not want the timeline to be open ended. He thought the possibility of the LMCC purchasing the facility would be one of the most attractive proposals the Cities would receive (it meets the City's zoning requirements) should the Cities decide to sell it. He thought it would be a mistake to let the LMCC's proposal expire while the Cities discuss a possible sale of the facility. Councilmember Woodruff stated that fact that SSSP is operating the Center similar to the way the Friends did does not constitute a plan. He does not know if SSSP will stop that next week. He stated the $59,000 spent for SCS services in 2008 could be a placeholder for 2009. Including that placeholder and $15,000 for reserves would result in an approximate $80,000 deficit for 2009 rather than the approximate $19,000 identified in the projections. The City's share of that deficit would be approximately $38,000, and that is a substantial amount of money for the City and the other four Cities' shares would be substantial as well. The $4,000 deficit in the projections, not including reserves, is not a valid number to consider because a reserve find has to be created. SI- OREWOOD CITY COUNCIL REGULAR MEETING MINUTES Match 9, 2009 Page 5 of 14 Councilmember Zerby stated a $60,000 placeholder for the cost to manage the Center is a guess. He commented $38,000 would be less than what the City has spent to resurface its tennis courts and do some other park improvements, and that assumes a $60,000 expense for management services which he does not agree with. Options for providing management services have not been researched. He noted the City has more than $100,000 allocated in 2009 for park improvements. Councilmember Turgeon stated she is willing to consider options for management services. If a suitable organization can be found to operate the Center then she wants that and a business plan for operating the Center completed by March 31, 2009. If that does not happen, she wants to pursue a buyer for the facility. Based on feedback fi•orn Director Nielsen, a Montessori school and a church would be allowable uses for the property; an office building would not be. She commented she listened to a discussion by the Excelsior Council, and that Council thought the facility could be worth $1.15 million. She thought that amount was unrealistic because of the restricted uses for the property, there is no parking and there are easement issues. She noted the Shorewood Option in the Cooperative Agreement stipulates the City would have the first right of refusal to purchase the facility if the Cities decide to sell it. She wants all Cities' to agree to a final option by March 31 sr Mayor Liz& stated it would be wonderful to have the Cities to agree to a path for moving forward by March 31'r, but it is difficult enough to get five people to agree let alone 25 people. The financing discussions that had occurred over the last two years are no longer the focus because of the dissolution of the Friends. During the Council work session just prior to this meeting she asked the Councihnembers about their thoughts regarding options for management services. She commented a commercial appraisal would have to be done for the facility before it could be sold. She stated the LMCC terms sheet indicates the LMCC is willing to pay $360,000 for the facility over a 10-year period using a lease to purchase arrangement, and it must have a decision from the Cities by March 31". From her perspective the LMCC's hurry-up approach has the feel of a hard-sell approach where the deal must be closed immediately or the deal is off the table. She does not want the City to rush into anything. She stated the LMCC indicated it would need to acquire additional land for an attached garage. If the Cities' were to consider selling to the LMCC, it will take longer than one month to even reach agreement. She suggested the first step down the market-for-sale path should be to get a commercial appraisal done of the facility. The Southshore Center working group is scheduled to meet the next day to discuss options which include continued operations of the Center and selling the facility. She stated Administrator Heck has the skills to prepare a request for proposal (RFP) from the Cities for management services, and to work with SSSP to prepare some type of agreement. Someone has to take the initiative to find out what's available to the Cities in this market. This could be discussed at the meeting of the working group tomorrow. Councilmember Woodruff asked Attorney Tietjen if the City has the right to exercise the Shorewood Option because the Friends dissolved. Tietjen stated the Cooperative Agreement specifies upon termination of the lease term one of the three things that can occur is the City exercising the Shorewood Option. Woodruff stated Council could decide to buy the Center during this meeting. Doing so would solve Councilmember Zerby's concern that the Center would disappear, as well as avoid the potential situation of the Cities not being able to agree to what the future of the Center should be. The City can buy the Center for $311,000 per the Cooperative Agreement (the amount of money the other four Cities collectively contributed to construct the facility), and the Agreement also specifies what the City would have to do if it sold the facility within a specified window. If the City were to exercise the Shorewood Option there is no obligation to obtain an appraisal. If the City chose to buy the facility, the City Council could then decide what it wants to do with the Center. SH REWOOD CI'T'Y COUNCIL REGULAR MEETING MINUTES March 9, 2009 Page 6 of 14 Councihnember Zerby stated obtaining an appraisal would be to the taxpayers' benefit to be able to sell the facility for the highest amount possible. He questioned if the facility could be used for the Excelsior Library. He also thought there could be other possible uses for the facility than just the LMCC. He stated he did not understand what the reason is for LMCC's sense of urgency with regard to purchasing the facility. He then stated he could support a 6-month time period to complete addressing the long-term future of the Center, noting Councihnember Bailey had suggested a 6-month time period. He wanted a list of tasks that must be completed in that time period to be identified. He thought having a deadline of March 31sT is unrealistic as this Council has just one regular meeting prior to that date and there is a lot of work that has to done by someone. Mayor Lizee noted Hennepin County Library is not interested in having the Excelsior Library relocated to outside of Excelsior. Administrator Heck stated the Cooperative Agreement stipulates the facility may be sold to a third party at the fair market value. How the fair market value would be determined is not specified. Mayor Lizee stated LMCC Chair/Spring Park representative Tom Scanlon, LMCC Executive Director Sally Koenecke, and the City's representative on the LMCC Pat Hodapp were present this evening. Mr. Scanlon stated the LMCC has been in discussions for the last six months about where it should operate out of, and it considered 20 - 30 different options. After reviewing the options, it was decided that LMCC representatives would approach its member cities about purchasing the facility it currently leases. The LMCC has not yet signed any agreement with the owner about the purchase of the facility. He commented all of this was done before LMCC representatives became aware that the Center could be available for purchase. LMCC staff has since looked at the Center to determine if it can satisfy the LMCC's needs, noting the ceiling will have to be raised. Renovation would cost approximately $150,000. Mr. Scanlon provided a little history about the LMCC, and he noted its revenues come from cable television franchise and PEG fees. He stated the LMCC is fiscally sound. He explained the LMCC planned to make a decision regarding the purchase of the facility it currently leases by month-end. The LMCC's lease expired a number of months ago. The LMCC has received extensions fi•om the property owner to remain in the facility on a month-to-month basis while the LMCC negotiated purchase terms, and lie did not think the LMCC could get an additional extension. He commented the LMCC's attorney has indicated there are some State Statutes that will influence a LMCC facility purchase. In response to a question from Councihnember Zerby, Mr. Scanlon stated the purchase price for the facility it leases is $319,000. In response to another question, Mr. Scanlon stated the LMCC has to have completed a contract for deed purchase agreement by month-end or it has 90 days from the end of March to move out of the lease facility. Mr. Scanlon stated that once the LMCC decides to purchase a facility it has to come before all seventeen LMCC member cities to gain majority approval to purchase a facility. Councihnmember Woodruff stated he also represents the City on the LMCC. The LMCC has already been granted another lease extension to allow it time to consider the purchase of the Center, and there are no assurances the landlord will grant any more extensions. He then stated the Center is a much more appropriate facility for the LMCC; the existing leased facility would be a five year solution while the Center would be longer term solution. The LMCC has to make a decision about what it wants to do. He noted the LMCC has already delayed some budgeted capital improvements requiring installation of equipment until it makes a decision about where to locate its operations. Mr. Scanlon explained if the LMCC purchased the other facility it would have equity in it in five years that would help when identifying a longer-term solution for the LMCC. The Center is a solution the . ' --EWOOD CITY COUNCIL REGULAR MEETING MINUTES l.aarch 9, 2009 Rage 7 of 14 LMCC would like to have in the long-term; therefore, it makes more sense to pursue it now. It would be regretful if the LMCC purchased the lease facility and then in 3 - 6 months the Cities decide they want to sell the Center. Councilmember Bailey stated he could appreciate the LMCC's situation, but he did not understand why the LMCC's March 31'r date could not be extended to April 30"'. He thought it would be foolish for the LMCC to give the Cities a deadline that is clearly not doable. He also thought it would also be to the LMCC's detriment to look back six months from now and think it should have given the Cities an extra month. Mayor Liz6e stated she did not appreciate the feeling of pressure from the LMCC. It's the LMCC's problem to find an appropriate space for its operations. She hoped the Cities would consider the long-term future of the Center, and not react to short term issues or opportunities. She explained that in the 1980s the Minnetonka School District was experiencing a shrinking population and discussed selling West Junior High School. It did not do so; it leased the building out instead. In a few years the population size increased, and the District took possession of the School. The School was eventually remodeled and expanded. She stated the Cities had the foresight many years ago to take the time and effort to agree to building the Center. The Center is paid for and it is a wonderful asset to the community. The Cities need snore time to consider the future of the Center, and they need to consider future needs of the community. Councilmember Bailey stated there are potentially four of the five Cities willing to sell the facility. He encouraged the LMCC to extend the decision date, and he thought the LMCC would be within its rights to extend the date to April 30"'. Mr. Scanlon stated the LMCC's timeframe is limited and he wanted to be open and direct about that. He then stated he did not know if extending the date would be possible. Councilmember Zerby stated lie did not think a 30-day extension would be unreasonable. Mr. Scanlon stated it may come down to emotions with the property owner; the owner thought he was close to an agreement to sell his property. Zerby stated the LMCC's offer seems too low. He explained if the mortgage rates for a ten year period were backed out of the $360,000 offer, the purchase price would be approximately $290,000. Mr. Scanlon stated the $360,000 amount was stated to start discussions. Ms. Koenecke stated the LMCC is not a commercial business. It is a government agency and it provides a community service. Mayor Liz6e asked for direction from Council. Woodruff moved authorizing the execution of the Shorewood Option to purchase the Southshore Center. Councilmember Woodruff stated if the motion passes then Staff should be directed to determine how to make that work. The amenity would remain in the City under the City's control. It would be available to the other communities. Acquiring the facility would get the City out of the situation where 25 council members have to agree to things. Turgeon seconded. Councilmember Zerby stated he is not in favor of doing this. The Center serves the community as a whole and he wanted the opportunity to discuss this with the other four Cities' councils. There is a meeting of In response to a suggestion from Councilmember Turgeon, Councilmember Woodruff stated he was not willing to amend his motion. Councilmember Bailey asked Coumcilmember Woodruff how he proposed the City would pay for the Center. Woodruff stated the City had approximately $890,000 in its Liquor Fund at the end of 2008 and if everyone thinks the facility is such a great asset to the community he can't think of a better use for some of the Liquor Fund then to acquire the facility. Director Burton stated if the Parks Capital Improvement Program wants to consider this purchase as a recreational opportunity, then the City's Sewer Fund could make an internal loan for it. Woodruff stated the City has the financial wherewithal to fund the $311,000 purchase in a day or two. Mayor Lizee stated this idea is an interesting one, but this facility is for the five-city community. The Cities are meeting tomorrow and should have the opportunity to discuss this. She then stated she could not support the motion. Councilmember Zerby stated it is his understanding that the Council had agreed to hold a public hearing on the use of the Liquor Fund when it decided to sell the City's liquor operations, noting he was not a member of the Council at that time. To acquire the facility when there are so many outstanding questions about the cost to operate and maintain the Center does not make sense. Councilmember Woodruff stated if the Councilmembers think the Center is such an asset lie challenged them to "put your money where your mouth is". Motion failed 2/3 with Bailey, Lizee and Zerby dissenting. In response to a comment by Mayor Lizee, Councilmember Zerby stated the absolute earliest there would be enough information to determine a direction would be April 30`x'. One of the things that would have to be completed by then would be a new/amended Cooperative Agreement between the Cities. Another would be a lease between a new management services provider and the Cities. A five-year business plan should also be completed by then. If that cannot be completed by then, then he would be interested in discussing the City acquiring the facility as a resource for the community. Councilmember Turgeon stated she perceived this is a stall tactic for each city to use, and the timetable should be shortened. Mayor Lizee stated the April 30`x' deadline is too aggressive. It could easily take six months to complete the tasks. She noted one of the City's Councils meets monthly. Currently there is no one to manage the facility. SSSP has indicated it is doing that but there is no written agreement. There are renters for the Center, and there are ongoing programming services being provided at the Center. Councilmember Turgeon stated no one knows who the SSSP is, and it has not paid any rent as of yet. Mayor Lizee stated SSSP has indicated they will pay $600 per month for rent. Director Burton was asked to research if SSSP has paid any rent. SHOREWOOD CITY COUNCIL REGULAR MEETING MINUTES March 9, 2009 Page 9 of 14 Councilmember Woodruff stated from his vantage point every day the current situation remains as is the City is spending money on the Center but has no assurances from the other four Cities that it will be reimbursed. He commented that during the recent Excelsior Council meeting that Council indicated Shorewood's legal counsel can do the necessary legal work. He stated in a different meeting he expressed his willingness for the City to fiord the Center's operational costs for March if need be, but he does not want the City to do that for April. The agreement for paying for operational costs could be relatively informal, but there needs to be some agreement. When asked what the deal should be, Woodruff stated the Cities should split the operational costs (including a reasonable rate for Staff time) evenly during this interim period. Councilmember Zerby questioned why the costs would not be split on an ad valorem basis. Councilmember Woodruff stated the City would pay one half of the cost and yet have only one vote, and that made no sense to him. In response to a comment from Mayor Liz6e, Councilmember Woodruff and Administrator Heck stated the Cooperative Agreement does not address how operational costs for the Center should be funded. It could be possible the costs for operating the Center could be distributed similarly to how the construction costs were distributed, but that has not been determined. Heck stated distributing the costs equally on an interim basis does have merit. Woodruff stated all Council is discussing is evenly splitting operating costs in the interim, noting the Cities do not know what the monthly operating costs are. Administrator Heck asked Council how long the interim period should be. He suggested Council provide some direction on what it would like accomplished during that period. He and Mayor Liz6e could discuss this with the other Cities during the meeting of the Southshore Center working group. He also stated they could relay that this Council wants everyone to share equally in the operational costs during this interim. He noted the City's attorney cannot handle a potential sale of the facility to the LMCC due to a conflict of interest. Coumcilmember Zerby stated Council has discussed the possibility of splitting the interim operational costs equally among the Cities. He questioned what the other four Cities' reactions have been to that. Administrator Heck explained that type of split has been made for the funding long-term maintenance costs prior to the Friends dissolving. The other Cities have expressed concern about that proposal. This proposal is for the interim operating costs only. Councilmember Woodruff stated during the interim period a business plan must be prepared, the financing for the Center has to be determined (including how it's split), and a suitable management services provider has to be found. He then stated he was not willing for this interim period to be open ended. Mayor Liz6e asked how long Administrator Heck thought it would take to complete the items identified. Councilmember Woodruff stated he did not think it was just Heck's responsibility; the other four Cities should be involved in this. Lizee stated it is Heck's job to work with the other Cities' representatives. She then stated Council's expectations have to be reasonable based on the time allowed. Administrator Heck questioned if it made sense to work on a long-range plan to manage the facility if the facility is going to be sold. He stated it would be difficult to talk with people about renting and managing the facility if the facility is going to be sold in 3 - 6 months. Councilmember Zerby suggested he and Councilmember Turgeon work with Administrator Heck to accomplish the interim objectives, noting he and Turgeon have opposing views on the Center's future. SHOREWOO CITE' COUNCIL REGULAR MEETING MINUTES March 9, 2009 Page 10 of 14 Administrator Heck stated the time needed to complete the interim tasks will depend on the willingness of the Cities' councils to negotiate. Absent that willingness it will be unlikely the situation will change. If it Council's direction that it wants some type of business plan for the long-term operation of the facility within 60 days then that message will be conveyed to the working group at its meeting tomorrow. Heck stated April 30"' or May 31" deadlines are both aggressive dates to complete all of the tasks identified. He then stated he will also convey if the business plan and necessary agreements cannot be completed by a to-be-determined deadline then Council wants the facility put up for sale. Councilmember Zerby stated he could support an April 30"' deadline, noting it will take a lot of staff time to pull this together. Councilmember Woodruff stated he could support an April 30"' deadline, and he wanted assurances the City would be reimbursed for four-fifths of its costs including Staff time. The other Cities need to understand this matter is urgent and must be addressed accordingly. Councilmember Bailey stated he wanted a commercial appraisal done on the facility during this interim tirneframe. He suggested substantive negotiations be entered into with the LMCC. He could support extending the deadline to at least April 30"'. In response to a comment from Mayor Liz6e, Councilmember Woodruff stated Mr. Scanlon and Mr. Hodapp have heard the Council's discussion and they can convey that to the LMCC Executive Committee at its March 12'11 meeting. That Committee can then decide if it wants to ask for an extension. Attorney Tietjen stated if the Cities successfully negotiate how to split long-term operating costs of the facility the Cooperative Agreement must be amended or a Memorandum of Understanding (MOU) must be agreed to. Any amendment to the Cooperative Agreement must be agreed to by four out of the five Cities. Councilmember Woodruff stated amending the Agreement would be complex, and he suggested entering into a MOU for this interim period. Councilmember Bailey questioned what happens if the City is turned down on its proposal for evenly splitting the operational costs in the interim. Councilmember Woodruff stated Council has to decide if it wants to execute the Shorewood Option to purchase the facility. Administrator Heck stated lie thought the other Cities would be willing to split the costs, although he could not speak on their behalf. Bailey stated if the other Cities will not agree then the City has to pursue other options. Councilmember Zerby stated he wanted to know what the City's exposure would be to buy the facility. B. 2009 Deer Management Program Director Nielsen explained the City contracted with Metro BOwhunters Resource Base (MBRB) to conduct a deer management program in the City in 2007 and 2008. The harvesting was done over four weekends each year. MBRB harvested 26 deer in 2007 and 23 in 2008. In 2007 an aerial survey done by the Three Rivers Park District showed there were 121 deer in the survey area. The 2008 survey showed 74 deer in the same area and a February 2009 survey showed 64 deer. He noted the surveys were a snapshot taken on a single day. He explained the City issued a special deer removal permit for the Minnetonka Country Club (MCC) for the 2007/2008 and 2008/2009 seasons. During the first season 11 deer were removed from the MCC property and in the second season 8 deer were removed. SHOREWOOD CITY COUNCIL REGULAR MEETING MINUTES March 9, 2009 Page 11 of 14 Nielsen stated Council had been provided with all of the written correspondence the City had received from residents regarding this program over the last year. Residents who called the City were encouraged to put their views about the program in writing. Nielsen stated Staff is seeking Council's direction as to whether or not it wants to have another harvest done in the City during 2009. Councilmember Turgeon suggested the program be suspended for 2009, and that another survey be conducted in 2010. She thought removing one-half of the herd was relatively good, although she did not know where some of the deer relocated to. Councilmember Woodruff did not think a clear set of goals for the program had been identified. He suggested the program be suspended for 2009, and that another survey be conducted in 2010. He also suggested MCC not be granted a special deer removal permit for the 2009/2010 season. Councilmember Zerby questioned if the Minnesota Department of Natural Resources (MN DNR) had any guidelines for what a reasonable urban deer population should be. Director Nielsen stated the MN DNR basically believes each community should determine what it wants to have as its goal. A ratio of 25 deer per square mile had been mentioned. In response to another question, Nielsen stated the only special deer removal permit the City has issued was to the MCC. Nielsen stated for the 2008 harvest, a few residential properties were included in the harvest. Councilmember Zerby stated he could support suspending the program for 2009. Councilmember Bailey stated MBRB has indicated the deer population level can return to pre-harvest levels within 1 - 2 years of no harvesting. He questioned what would be required to maintain the Current level. Director Nielsen explained MBRB had provided the City with a number of options for maintaining existing levels, such as reducing the number of weekends the harvest occurs. Nielsen commented that residents in one of the areas harvested have noticed a reduction in the deer population. Bailey clarified the goal is not to eliminate all of the deer in the City, but the City does not want to return to a population where the City will again receive lots of complaints. He wondered if it would not be better to continue with the program at a lower level. Mayor Lizee stated she would be in favor of reducing the number of days the harvesting occurred. She did not want to suspend the program entirely in 2009. She thought the MCC should have the opportunity to again request a special deer removal permit. Deer crossing roads can create hazardous situations. Councilmember Woodruff stated he thought there should be an objective identified for the program. One could be to harvest up to a specific number of deer. Another could be to harvest enough to reduce the most recent aerial survey population to a certain number. He agreed the intent is not to eliminate all deer. He stated he would be more inclined to limit the number of deer harvested than lie would to reduce the number of harvesting days. Director Nielsen stated the majority of the deer harvested happens in the first two weekends. Councilmember Zerby suggested the goal could be to limit the number of deer harvested to one-half of what was harvested in 2008. Mayor Lizee questioned if the numbers being discussed were to please residents. She commented based on the number of deer in her backyard it seems as if the deer are giving birth to twins. SHOREWOOD CITY COUNCIL REGULAR MEETING MINUTES March 9, 2009 Page 12 of 14 Woodruff moved, Turgeon seconded, suspending the City's deer removal program for 2009 and rejecting a potential request from the Minnetonka Country Club for a special deer removal permit for the 2009/2010 season. Motion passed 3/2 with Bailey and Liz& dissenting. There was Council consensus to have an aerial survey done in 2010. Director Nielsen stated Metro Bowhunters Resource Base has been absolutely professional during the 2007 and 2008 deer harvests; they made a concerted effort to do the harvest correctly while providing a service to the City. He thanked the South Lake Minnetonka Police Department for being prepared to provide assistance if needed, and the Public Works Department for its help. C. City Hall Signage Administrator Heck stated during its January 12, 2009, work session Council discussed outdoor signage for City Hall. He explained the design for City Hall calls for a shadow box style sign mounted on top of the archway extension on the main entrance. During that meeting Council discussed the need for a sign on the building or possibly having a monument sign instead. Heck indicated a Council member suggested mounting raised letters on the stone. He explained there are a few issues with mounting a sign on the stone. The first is part of the sign would not be visible from Country Club Road because of the bump out in the Council Chambers. The second is there is currently no lighting to illuminate the sign, although it could be added for additional cost. Also, a decision would have to be made regarding what to do with the gap on top of the archway. He asked Council if they wanted the sign per the original design. Mayor Liz& stated the original proposed sign with plasma-cut lettering is a strong design element of the renovated City Hall. The look of lettering mounted on the building would look pretty lame. The proposed sign design finishes the look. Installing the proposed sign does not preclude the need for a monlunent sign, but that can be addressed as part of the landscaping and parking lot discussions. She recommended the sign for City Hall be as originally agreed to as part of the design of City Hall; it would be located above the stone wall. Councilmember Woodruff stated he initiated the discussion about different types of signs during the January 12`x' and locating the sign on the stone wall is also his suggestion. He still does not like the sign. The renovation will be completed soon and there is a need for a sign on City Hall; therefore, he was willing to make a motion approving the sign. Woodruff moved, Turgeon seconded, approving the sign as originally designed using the same font as the font used on City letter head. Motion passed 5/0. D. City Owned Property 5795 Country Club Road Administrator Heck stated two families had toured the City-owned house. The family who toured the house today (it was their second time) wants to sign a one-year lease to rent the house effective April 1. He indicated the couple is willing to do a two-year lease and a potential option to buy. He asked Council to give him direction to contact the City's property manager to work with the family to secure a lease similar to the City's past lease. The house is currently marketed at a rental rate of $1,500 per month. There was Council consensus to have Administrator Heck contract the City's property manager and prepare a lease agreement for Council to review at its next regular meeting. SH REWOOD CITY COUNCIL, REGULAR MEETING MINUTES March 9, 2009 Page 13 of 14 E. Report on Lake Minnetonka Conservation District (LMCD) Activities by Representatives Rick Woodruff and Lisa Whalen Councilmember Woodruff, the City's representative on the Lake Minnetonka Conservation District (LMCD), discussed his report on recent LMCD activities (as detailed in his report dated March 9, 2009, which was included in the meeting packet for this meeting). He noted that LMCD Board Chair Lisa Whalen was not able to be in attendance this evening due to a scheduling conflict. The highlights of the report are as follows. The LMCD relocated to Shorewood. The LMCD's Save-The- Lake Fund has assets of approximately $220,000 as of January 31, 2009. The LMCD Exotic Species Task Force met in February to review a proposal to treat three Lake Minnetonka bays for Eurasian watermilfoil. The LMCD, Mound and Shorewood have committed to funding for Phelps Bay, and it's anticipated Minnetrista and the MN DNR will also. A third strategic planning meeting is scheduled for March 18`x'. There will be an additional 26 green/red buoy lights added in 2009. The buoys are owned by the Hennepin County Sheriffs Water Patrol, but the LMCD will pay for the lights. The Minnehaha Creek Watershed District started chloride monitoring of Lake Minnetonka in 2008 and will continue that in 2009. The LMCD does not advocate restricted access or user fees for Lake Minnetonka. The LMCD intends to more actively enforce its restrictions for number of water craft and appropriate ownership of water craft at docks during 2009. He reviewed his participation with the LMCD in 2009 indicating there have been two meetings and he has attended all of them. Councilmember Zerby stated a $100 fine or 90 days in jail for violations seemed low. Councilmember Woodruff stated he had been corrected about the $100 amount. The fine amount is governed by State Statute and it is now $1,000; the fine in the LMCD's bylaws has not been updated. Councilmember Zerby stated during the February 23, 2009, Council regular meeting Councilmember Woodruff stated the LMCD was going to consider a request from Bayside Grille Catering for a law change that would allow Bayside Grille Catering to sell on sale alcoholic beverages on the ice. He wondered if there is update on this item. Woodruff stated this has not been resolved yet. Mayor Lizee stated based on Councilmember Woodruff's report the LMCD's Save-The-Lake Fund assets are approximately $220,000. The LMCD reserves 25 percent of those funds for grants. She asked Woodruff to find out what the rest of the funds are used for. With regard to regulation enforcement, the LMCD had discussed this for a few years but it did not have the necessary funds to conduct the enforcement and to prosecute. She asked Woodruff to find out how much money has been budgeted for 2009 to perform those activities. She stated Woodruff reported the LMCD does not advocate restricted access or user fees. The 1991 LMCD Lake Management Plan states the LMCD advocates launch fees to pay for inspections. She asked Woodruff to address this with the LMCD Board. Lizee recessed the meeting at 9:11 P.M. Lizee reconvened the meeting at 9:20 P.M. F. Special Event Permit for Knewtson Health Group 5K Run This item was removed from the consent agenda at COUncilmember Woodruff's request. Councilmember Woodruff stated the last statement Staff report was missing a word that could result in the recommendation being interpreted correctly. He wanted to ensure the South Lake Minnetonka Police Department would review the permit and make appropriate recommendations. SHOREWOOD CITY COUNCIL REGULAR MLZ- . t INUTES March 9, 2009 Page 14 of 14 Woodruff moved, Zerby seconded, approving a Special Event Permit for Knewtson Health Croup 5K Run as corrected. Motion passed 5/0. C. Storm Water Pollution Prevention Program Amendment This item was removed from the consent agenda at Councilmember Woodruff's request. Councilmember Woodruff stated in an email to Staff he had asked if the proposed amendment to the Storm Water Pollution Prevention Program (SWPPP) will result in additional staff time and costs, and if so are they budgeted for in the 2009 budget. The response back from Staff indicates Engineer Landini will have to spend an additional 50 hours per year on new impaired water related activities and capital expenditures for those activities will be includes in future Capital Improvement Programs. Landini is currently allocated for approximately 100 hours toward storm water related activities; there may not be enough hours for new impaired water activities. Woodruff commented this is another unfunded mandate. Woodruff moved, Turgeon seconded, Adopting RESOLUTION NO. 09-014, "A Resolution Amending the Storm Water Pollution Prevention Plan." Motion passed 5/0. 11. STAFF AND COUNCIL REPORTS A. Administrator and Staff 1. City Hall Construction Update Administrator Heck stated the renovation of City Hall is nearing completion. He suggested Council determine when it would like to have an open house. He anticipated the City Council meeting scheduled for April 13`x' will be held in the new Council Chambers. Other Staff Reports Engineer Landini stated he attended a shoreline stabilization seminar put on by the Minnehaha Creek Watershed District. B. Mayor and City Council Nothing additional to report. 12. ADJOURN Turgeon moved, Woodruff seconded, Adjourning the City Council Regular Meeting of March 9, 2009, at 9:25 P.M. Motion passed 5/0. RESPECTFULLY SUBMITTED, Christine Freeman, Recorder l ~ f Christine Lizee, Mayor