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060809 CC Reg MinCITY OF SHO EWOOD CITY COUNCIL REGULAR MEETING MONDAY, NE S, 2009 MINUTES 1. CONVENE CITY COUNCIL REGULAR MEETING Mayor Lizee called the meeting to order at 7:06 P.M. A. Roll Call 5755 CO'J°7° 7 CLUB ROAD COUNCIL, C sAMBERS 7:00 P.M. 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 Councilmember Woodruff requested Item IO.D, Administrative Citations for Traffic Violations be added to the agenda. Turgeon moved, Zerby seconded, approving the agenda amended. Motion passed 5/0. 2. APPROVAL OF MINUTES A. City Council Work Session Minutes, May 26, 2009 Turgeon moved, Woodruff seconded, Approving the City Council Work Session Minutes of May 26, 2009, as presented. Motion passed 5/0. B. City Council Regular Meeting Minutes, May 26, 2009 Zerby moved, Turgeon seconded, Approving the City Council Regular Meeting Minutes of May 26, 2009, as presented. Motion passed 5/0. 3. CONSENT AGENDA Mayor Lizee reviewed the items on the Consent Agenda. A. Approval of the Verified Claims List B. Adopting RESOLUTION NO. 09-032, "A Resolution Approving a Temporary 3.2 Percent `On-Sale' Malt Liquor License issued to the Excelsior Firefighter Relief Association." C. Approval of an Agreement with Minnetonka Community Education for Lifeguard Services for Crescent Beach r"Y" SHOREWOOID REGULAR COUNCIL MEE'r1NL ..as...)1 -,S D9 ;e 2 of 12 D. Adopting RESOLUTION NO. 09-033, "A Resolution Accepting Bid and Awarding Contract for the 2009 Bituminous Mill, Overlays and Appurtenant Work for Forest Drive, Ferncroft Drive, Caje Lane, Beverly Drive and Stratford Place, City Project No. 09-04." E. Authorize Staff to notify Veolia of Intent to Request RFPs for Recycling Services Councilmember Woodruff stated the format for the verified claims was recently changed; this is the second time Council has been provided reports with the new format. One report is in check number order; another is in vendor name order. He would be satisfied with receiving the report in vendor number order only. He then stated the vendor order report contains department payroll information but the check number order report does not; he questioned why. Director Burton explained that staff provides council with a verified claims list in check number order. Staff thought that because the City had converted to a new financial system a while back that it would also worthwhile to provide Council with a report in vendor- name order and another report which sorted by department within fund. With regard to payroll checks, she explained that all employees now use direct deposit; funds are electronically transferred to their accounts. Therefore, there are no check numbers to appear in the check number order report. She noted that in the interest of privacy for employees, Staff thought it prudent not to include all of the detailed information; that information is available for Council to come in and review at any time. Councilmember Woodruff stated there has been the occasional question about checks being written to temporary employees. Director Burton explained that no employee is hired without approval from Council. When the City still had its liquor operations there were more changes in employees. Councilmember Turgeon asked what the reimbursement to Mayor Lizee for $82.31 was for. Mayor Lizee explained it was for supplies and the cost of the Save the Lake Banquet. Director Burton noted that mayors are invited to attend the Save the Lake Banquet. Woodruff moved, Zerby seconded, approving the Motions Contained on the Consent Agenda and Adopting the Resolutions Therein. Motion passed 5/0. 4. MATTERS FROM THE FLOOR There were no matters from the floor presented this evening. 5. REPORTS AND PRESENTATIONS A. 2008 Audit Presentation by Andrew Berg, CPA, Abdo, Eick and Meyers, LLP Chair Lizde explained the City of Shorewood's 2008 Comprehensive Annual Financial Report (CAFR) had been prepared. Mr. Andrew Berg, CPA, with the independent CPA firm of Abdo, Eick & Meyers, LLP, would highlight the findings. Mr. Berg congratulated the City for receiving the Certificate of Achievement for Excellence in Financial Reporting awarded by the Government Finance Officers Association for its CAFR for the fiscal year which ended December 31, 2007 (this was the sixteenth consecutive year that the City had received the Certificate). He anticipated the City would again receive the award for the fiscal year which ended December 31, 2008. `TW OD REGULAR COUNCIL MEETINk, -1:S aE- of 1 Mr. Berg stated his firm issued a "clean" opinion on the financial statements; there were no findings in the audit. He noted there were no instances of non-compliance with Minnesota statutes. He said Staff was very cooperative in providing the auditors the information they needed. Mr. Berg provided a financial overview of the City's General Fund expenditures and revenues. He stated the City's General Fund balance has kept pace with the next year's budget over the last five years. The 2008 year-end balance was 68 percent of the 2009 budgeted expenses. His firm typically recommends reserves of 50 percent to satisfy cash flow needs. He commented the City adopted a General Fund Balance Policy in 2007 which had an objective of maintaining a General Fund balance of 55% - 60% of budgeted expenditures, and recommendations for use of the find balance in excess of 60%. Mr. Berg explained revenues were under budget by $42,310 and expenditures were under budget by $28,910; expenditures exceeded revenues by $13,400 not including transfers. After transfers, the General Fund balance decreased $53,400 during 2008. Approximately 88.5% percent of the City's revenues and transfers in (for 2008, approximately $4.58 million out of $5.18 million) came from property taxes. Revenues from licenses and permits increased in 2004 - 2006, and decreased significantly since the end of 2006. Expenditures and transfers out have increased gradually over the last five years. Capital outlay tends to fluctuate based on projects done. With regard to Debt Service Funds, Mr. Berg stated the Waterford III Tax Increment Bonds had been paid in full, and the $11,900 balance in that fund should be used for a purpose consistent with the City's tax increment financing plan. There are approximately $20.6 million of EDA Public Safety Facility bonds outstanding. He noted approximately $10 million of refunding bonds were issued during 2007; until the crossover refunding date both the old and new bonds will be reported on the financial statements. There were $1.31 million in Lease Revenue bonds issued in 2008 to finance the renovation of City Hall. With regard to Capital Projects Funds, he explained there was an increase of approximately $1.27 (to approximately $3.74 million) in the combined find balances for all capital projects fiends in 2008. The increase of approximate $626,410 in the City Hall Construction Fund was to due to the issuance of bonds in 2008. Mr. Berg then highlighted the Enterprise Funds (sewer, water, storm water management, recycling and liquor). With regard to Liquor Funds, he explained the City's liquor operations were sold in 2007. The Funds had combined assets of approximately $896,000 at the end of 2008. He recommended the City determine what should be done with the remaining Liquor Funds. Mr. Berg stated the Water Fund had slightly more than $3.774 million in cash and cash equivalents and $3.415 million in bonds payable. There has been a significant cash balance for the last three years. The operating margin decreased during the year primarily due to depreciation. There was a significant decrease in nonoperating revenues during the year. He recommended the City monitor operations to ensure rates are sufficient to cover operating expenses, debt service and future capital needs. Mr. Berg said the Sewer Fund balance at the end of the year was approximately $4.47 million (from approximately $4.37 at 2007 year-end). Fund revenues increased slightly over 2007 and expenses decreased by approximately $30,000. The operating margin showed a slight improvement primarily because of stable Metropolitan Council expenses. There was a significant decrease in nonoperating With regard to the Stormwater Management Utility Fund, he explained there was an approximate balance of $450,000. Operating revenues increased in 2008 due to a rate increase in 2007. He stated Stormwater Management projects are expensive to do; therefore, he recommended the City continue to monitor the Fund to ensure there are sufficient funds available for projects identified in the City's Capital Improvement Program. Mr. Berg stated the peer group used for the ratio analysis was expanded for 2008. He explained the debt- to-assets ratio increased to 45% from 44% during 2008. The debt-service-coverage ratio decreased to 96% from 130%. A ratio of 100% or more indicates a city was generating enough cash to cover its debt service expenses. The bonded-debt-per-capita ratio increased to $3,328 from $3,301 due to the lease revenue bonds issued for the City Hall renovation. The taxes-per-capita ratio increased to $602 from $581; the higher the amount the more reliant a city is on taxes to fund its operations. The capital assets percent decreased 2% for governmental activities and I% for business-type activities; a higher percentage indicates newer assets and a lower percentage indicates older assets which may need more repair and maintenance. Mr. Berg explained the City implemented the Governmental Accounting Standards Board (GASB) Statement No. 45 standards effective January 1, 2009. This deals with establishing standards for the measurement of other post employment benefits provided separate from a pension plan (such as post employment healthcare). Mr. Berg noted the City will have levy limits for the 2010 base levy. In response to a question from Councilmember Bailey, Mr. Berg stated although Director Burton closely monitors the cash flow in the Enterprise Funds he recommended the City pay close attention to the sources for paying the bonded debt. If the main source is operations, then it may be falling short in that capacity and the City should closely review its utility rates. Mayor Liz& thanked the Finance Department and the audit firm for their efforts. Turgeon moved, Woodruff seconded, Accepting the 2008 Comprehensive Annual Financial Report (CAFR). Motion passed 510. B. Tad Shaw - Report on Minnetonka Community Education Activities Tad Shaw stated he had been the City's representative on the Minnetonka Community Education (MCE) Advisory Council for over 20 years. MCE is a program that is basically run as a subsidiary of the Minnetonka School District. MCE provides early childhood family education programs, youth programs and adult programs. The list of programs provided is extensive. There were 27,684 people who participated in programs for the 2007 - 2008 program years. Those numbers are down somewhat for the 2008-2009 program year due to the economy. MCE Executive Director Litfin has been responsible for a couple of Minnetonka School District wide programs for children and the Tour de Tonka bicycle race was his idea. The old Deephaven High School, which is where MCE is located and a number of programs are conducted, is in the process of being remodeled. When completed, it will have one of the best conference rooms in the District. ~-T ° 'r-"1PW00D REGULAR COUNCIL MEETING MINUTES Pa e" Mayor Lizee asked if MCE was still looking for volunteers for the Tour de Tonka event schedule for August 5`", to which Mr. Shaw replied yes. Lizee commented there are over 2,000 people registered for the event. C. Dick Woodruff - Report on Lake Minnetonka Conservation District Activities CounciImember Woodruff, the City's representative on the Lake Minnetonka Conservation District (LMCD), provided a report on recent LMCD activities. The highlights of the report are as follows. The LMCD's draft budget is a zero percent increase over 2009; it's been reviewed by the member cities and it will be considered for adoption during the LMCD Board meeting scheduled for June 10t". The LMCD Board has held three strategic planning meetings to discuss its vision, mission, objectives and goals; a fourth meeting is scheduled for June 10"'. The aquatic invasive species (AIS) inspection program is in effect May through September. The LMCD's 2010 budget has allocated funds for the inspection program equal to the 2009 actual inspection level. The chemical treatment of Grays Bay occurred on June Is` and it occurred for Phelps Bay on June 2"d. The residents on Carman Bay were not willing to contribute to the treatment because they did think the treatment was effective enough. The LMCD will begin milfoil harvesting the week of June 8"'. The LMCD Exotics Task Force meets quarterly and its next meeting is scheduled for June 12"'; the Task Force will start working on a comprehensive AIS prevention plan. The LMCD newsletter was mailed out the week of June I"; it contained a number of good articles on the Minnesota Department of Natural Resources' AIS program and on the ramp inspection program. During June and July the LMCD Boardmembers will take tours of Lake Minnetonka to look at the success of the milfoil treatment. The LMCD will continue ordinance enforcement inspections, and issue a citation to violators who had been told they were in violation in previous years. The LMCD and the Army Corps of Engineers will assess the effectiveness of this year's chemical milfoil treatment; a report of the results will be prepared. Councilmember Zerby stated he has noticed that lights are missing on some of the buoys. CounciImember Woodruff stated if Zerby will let him know which ones, he will provide that information to the appropriate organization. Woodruff then stated he would research who is responsible for the maintenance of the buoys. Councilmember Zerby stated it's his understanding that the dam to Minnehaha Creek has been closed because of the low water level in Lake Minnetonka. He questioned how that is decided. Councilmember Woodruff stated the Mimâ–ºehaha Creek Watershed District has procedures for determining when the dam will be closed. 6. PUBLIC HEARING None. 7. PARKS No report was given. The next Park Commission meeting is scheduled for June 9, 2009. 8. PLANNING Director Nielsen reported on matters considered and actions taken at the June 2, 2009, Planning Commission meeting (as detailed in the minutes of that meeting). He noted the Planning Commission did "00D REGULAR COUNCIL MEETING MINUTES Pa!-- c not recommend approval of the variance request from Mark Themig and Brad Heppner; the vote was split two-two. Councilmember Zerby stated he was the Council Liaison for the Planning Commission meeting. He thought the property was very unique, and he encouraged the Councilmernbers to go and view the property before it considers the variance request during its June 22°d meeting. 9. ENGINEERING/PUBLIC WORKS None. 10. GENERAL/NEW BUSINESS A. Council Procedures and Policies Administrator Heck stated that over the last few months Councilmembers have raised questions regarding what, if any, policies and procedures the City has regarding the conduct of Council meetings, the structure of debate during the meetings, recognition of those who want to speak during meetings, etc. The binder titled City Policies only contains a copy of State Statute regarding Council meetings but noting else. Based on information he collected from the League of Minnesota Cities (LMC) and other cities, he created a draft document on policies and procedures for Council to consider regarding operating rules for Council meetings. He explained he had spoken with Desyl Peterson, Minnetonka City Attorney about their policies and procedures for council meetings. They are based on policies and procedures developed by the University of Virginia which are different from Roberts Rule of Order. He asked for Council feedback. Mayor Lizee stated she would like to have the opportunity to review what Minnetonka has adopted, noting the City has not adopted Roberts Rules of Order for governing meetings. Councilmember Bailey stated he could endorse what Administrator Heck has drafted. He thought there is a need for formal meeting policies and procedures. He expressed openness to considering what Minnetonka has adopted. Councilmember Zerby stated early in the year he questioned what the meeting rules were. He explained that many cities adopt meeting policies and procedures at the beginning of the year. He expressed a desire to review Minnetonka's. He commented he does not know what the difference is between parliamentary procedure and Roberts Rules of Order. Councilmember Woodruff stated he would like to review Minnetonka's before committing to using Roberts Rules of Order. He requested training on Roberts Rules of Order should Council chose to adopt that as its policies and procedures for meetings. Administrator Heck stated he will provide Council with a copy of Minnetonka's policies and procedures for council meetings. B. Art on the Walls Program Kristi Anderson, with Community Rec Resources and the City's Parks Coordinator, stated the City Hall Open House is scheduled for June 15"i. There is interest in featuring the artwork of local artisans on a rotating basis to give the artisans added exposure as well as fill the City Hall with varying styles of art on an ongoing basis. Staff requests Council support creating an Art Committee and accept Staff's proposed Art on the Walls program including selecting artwork for display. " EGULAR COUNCIL, MEETING MINUTES ='at 7 Mayor Liz6e thanked Ms. Anderson for her efforts. She recommended Council establish the Art Committee and accept the proposal. She would like to have some artwork in City Hall before the open house. She asked Ms. Anderson to consider what budget would be needed for various types of displays. Councilmember Turgeon stated when there was a similar program at the Southshore Center artisans were responsible for display materials. Councilmember Turgeon expressed concern about damaging the newly painted walls in City Hall. She stated artisans who displayed their work at the Southshore Center wanted to display it according to their preference which at times was not best for the physical impact on the Center. A certain type of strip was used to help hang art at the Center, but that was possible because of the false ceilings in the Center. She thought the program would be great. Councilmember Woodruff suggested Public Works staff supervise the hanging of any artwork on the walls. He recommended that if someone wanted to purchase a piece of artwork that it could not be removed from City Hall until its time period for display had expired. He thought a rotation policy should be developed. He suggested artwork only be displayed in public areas. Ms. Anderson stated the premise is art will only be displayed in the public areas. She also clarified that the City will not charge any commission for displayed art being sold. Attorney Tietjen stated the program description states that "Only appropriate artwork that meets general community standards will be displayed." She suggested it be changed to say "The Art Committee will select artwork for display". She also suggested that the waiver be changed to say "any and all claims". Councilmember Zerby questioned if it is necessary to form an Art Committee; he wondered if an ad hoc committee be sufficient. Mayor Liz6e stated she would like to be the Council representative on the Art Committee. There was Council consensus to endorse: creating an Art Committee consisting of one City Councilmember, one City Staff representative, two adult representatives, and one youth representative; accepting the proposal for an Art on the Walls program; and directing the Art Committee to begin the process of selecting artwork for display at City Hall. C. Southshore Center Administrator Heck stated representatives of the five member cities (the Cities) met on June 3, 2009, to discuss and comment on the City's proposal to serve as the tenant and operator of the Southshore Center (the Center) on behalf of the Cities. During its May 26'1' meeting Council directed Staff to modify the lease agreement that had existed between the Friends of the Southshore Center (the Friends) and the Cities such that the Shorewood would become the tenant in the lease agreement. A copy of the modified lease had been distributed to all the Cities councils on June 1 s`. It was discussed during the June 3`d group meeting. Greenwood Councilmember Paige stated he had some changes he wanted to discuss during the June 3`d meeting. Late in the day on June 0' the Cities received some recommended edits from Greenwood's legal counsel; the list of recommendation was included in the meeting packet. Also included in the packet were changes recommended by Tonka Bay's legal counsel and recommendations from Deephaven. The meeting packet for this evening included a copy of a further modified lease agreement. This most recent draft included some of the suggestions made by the other Cities, noting most of the Cities' substantial suggestions were included. d_1 _ - _ -001) REGULAR COUNCIL, M,.- ES Page Heck requested Council provide direction on the insurance provision and indemnification language in the lease agreement. If Shorewood has an umbrella type policy covering property, casualty and general liability coverage, there may not be a need for indemnification language in the agreement. The rental agreement for use of the Center stipulates the renter has liability for the activities. Attorney Tietjen stated she has contacted the League of Minnesota Cities Insurance Trust (LMCIT) regarding the indemnity issue, but she has not heard back from the LMCIT yet. She explained one of her questions was whether or not it would possible to put the other four Cities as additional insurers Shorewood's policy. In the lease agreement between the Friends and the Cities the Friends indemnified the Cities. In the proposed agreement Shorewood is the tenant; she questioned if Shorewood is willing agree to indemnify for activities on the premises. She suggested the agreement specify up to what limit Shorewood would be willing to indemnify, with the maximum being no more than what Shorewood would be responsible for under the statutory cap. Councilmember Turgeon stated she preferred the indemnification language remain the same as in the lease agreement with the Friends with the exception of adding language stating subject to the limits Minnesota State Statute Chapter 466. Attorney Tietjen recommended she draft simpler indemnification language that would accomplish what the indemnification language in the Friends' lease agreement accomplished. She stated she had to read the indemnification language in the Friends' lease numerous times to reasonably understand it. She thought the complicated language could be simplified and clarified without changing the intent. Councilmember Turgeon stated the recommendations from the other Cities did not indicate they had issue with the language. She thought punctuation marks could be added to make shorter sentences and make them easier to read, but it should stay as close to the original language as possible. Doing this would not require the other Cities to spend time and money to review new indemnification language. In response to a question from Councilmember Bailey, Attorney Tietjen stated she would not have a concern if the indemnification language remained as it was in the Friends' lease provided language was added specifying up to the limits specified in State Statute and provided Council agreed to indemnify and hold harmless the other Cities for any and all activities that occur at the Center. Councilmember Zerby stated he hoped Attorney Tietjen could clarify the language by adding punctuation. He then stated he was not sure if many of the other paragraphs in the lease agreement were any more palatable. Councilmember Turgeon stated the other Cities did not have issue with the language. Councilmember Zerby stated he viewed the Deephaven Council meeting during which there was significant discussion about it. Administrator Heck explained that the State law changed in 2008 such that joint powers organizations are subject to one city's statutory limit. The five cities are not a joint powers organization. The question is whether or not an individual can go after each of the Cities for their statutory maximum. He and Attorney Tietjen think that it may be possible for them to do that, so they want to limit Shorewood's liability to Shorewood's limit only. Councilmember Woodruff stated he could support indemnification language which would include subject to the limits of State Statute Chapter 466. He suggested that in paragraph 23 of the lease, Action by CI - - _-GUL,A 2 COUNCIL, MEETING MINUTES June t , Rage 9 of 12 Landlord, that "under paragraphs 2, 3, 10 or 16" be changed to under paragraphs 2, 3 or 16'"; paragraph 10 relates to signs. He stated he wanted to approve something this evening. Woodruff moved, Zerby seconded, approving the agreement for the lease and operation of the Southshore Community Center between the City of Deephaven, the City of Excelsior, the City of Greenwood, the City of Shorewood and the City of Tonka Bay (the Cities or landlord) and the City of Shorewood (the tenant) and authorizing the agreement be forwarded to the other four Cities for approval subject to including indemnification language with the intent that Shorewood would indemnify and hold harmless the other four Cities, adding subject to any limits specified under State Statute Chapter 446 to the indemnification language and removing the reference to paragraph 10, Signs, in paragraph 23, Action by Landlord. Councilmember Turgeon asked if the stipulation of four of the five Cities in paragraph 23, Action by Landlord, should be changed to say three of the five Cities; one of the Cities requested that change. In response to a question from Councilmember Turgeon, Administrator Heck explained the carbon copy to the attorney was removed from paragraph 17, Notices, because he and the other City Administrators and City Manager thought each of them would be responsible for providing their City's attorney with a copy of the document. The same applies to copying Shorewood's City Attorney as the tenant. Heck stated the stipulation of approval of four of the five Cities in paragraph 23, Action by Landlord, is consistent with the stipulation in the Cooperative Agreement between the Cities. He explained it is Attorney Tietjen's and his interpretation of the Cooperative Agreement that this is a Cities directed change in operation and therefore only requires approval of three of the five Cities. Paragraph 23 is about terminating the lease; that takes four of the five Cities and this is consistent with the Cooperative Agreement. He suggested the reference to paragraph 16, Right to Inspection, also be deleted from paragraph 23. He stated the reference to paragraph 10 should have been paragraph 14, Default. Councilmember Woodruff stated he did not have an issue with the four of the five Cities stipulation in paragraph 23. Without objection of the seconder, the maker of the motion amended it to change the references to paragraphs 2, 3, 10 and 16 to paragraphs 2, 3, and 14 in Paragraph 23, Action by Landlord. Councilmember Turgeon suggested the following changes to the beginning part of Recitals in the lease. The changes are as follows. Delete Recital 1: "WHEREAS, the Cites desire to provide a Center for use by senior citizens for education, cultural participation, socializing, recreation, arts, crafts, music and similar programs of enrichment; and". Change Recital 2: "WHEREAS, the Cities desire that the Landlord undertake its best efforts to make the Center widely available to all citizens and residents; and" to "WHEREAS, the Cities desire to make the Center widely available to all citizens and residents; and". Delete Recital 3: "WHEREAS, the Cities desire to provide a congregate dining facility to serve the needs of seniors and citizens; and". In Recital 4: add and other community-based activities such as those commonly provided at community centers throughout the area" to the end of "WHEREAS, the Cities desire to provide a facility to be used by citizens for municipal use, community organizations, meetings, banquets, receptions, reunions and similar public and private activities". She explained her intent was to make the focus all encompassing; it's for all citizens and residents. It should address the other Cities' concerns that it will not remain a community center. Councilmember Zerby stated deleting the Recital 1 changes the intent. He did not think there was harm in leaving it in the agreement. Mayor Liz& stated the Recitals have worked in the past and she did not think there was a reason to delete any of them. Councilmember Zerby stated Council heard loud and clear froth the community residents that they wanted to keep the Center operating as it is. Statements one and three are innocuous. There is nothing legal attached to them. In response to a comment from Councilmember Bailey, Attorney Tietjen explained the general purpose of recitals is to set out the purpose of an agreement. Recitals are incorporated as part of an agreement, but they are not terms of an agreement. There is no obligation to fulfill them. They are not legally binding. Recitals give a description and provide background. Bailey stated he assumed a senior groups' request to use the Center would not have a higher priority than an already agreed to request from a non-senior group, to which Tietjen replied it would not. Councilmember Woodruff stated he appreciated Councilmember Turgeon's effort to cleanup the agreement. If he were doing so there would be many changes he would recommend. But, the base agreement has been reviewed by the Cities and the Cities' attorneys numerous times when it was originally written as the Friends lease, and it has been reviewed and discussed again recently. He expressed extreme reluctance to making the changes suggested by Turgeon without discussing them with the other Cities. He thought Recitals 1 - 4 are reasonable. He could support making the suggested addition to Recital 4. Without objection from the seconder, the maker of the motion amended it to add and other community-based activities such as those commonly provided at community centers throughout the area" to the end of "WHEREAS, the Cities desire to provide a facility to be used by citizens for municipal use, community organizations, meetings, banquets, receptions, reunions and similar public and private activities" Motion passed 5/0. Councilmember Bailey stated it's important to start working on a management agreement with Community Rec Resources quickly and to prepare a business plan. He suggested Councilmembers Woodruff and Zerby work with Kristi Anderson, Community Rec Resources (CRR), to get that accomplished. Administrator Heck explained that he had sent Attorney Tietjen a draft agreement earlier that day. He stated the process recommended by Councilmember Bailey could be used to develop benchmarks that would be used to guide CRR's efforts and to assess CRR's performance. Councilmember Woodruff stated there are two things that must be done. One is a contract as to be written between the City and CRR. The second is an operating plan must be developed, and that plan will be executed under the contract. The operating plan will be a "living document". It will address short term things that must be achieved. Long terms goals will then have to be defined. He thought he and Councilmember Zerby could work with Staff to develop the operating plans. CI'T'Y v JLAR COUNCIL M-- S. E Jane 8, 2( , Page II of 12 D. Administrative Citations for Traffic Violations Councilmember Woodruff stated during the most recent State legislative session the Legislature and the Governor approved administrative citations for a limited number of traffic violations. He thought it could be implemented as soon as July 1, 2009. Some State department must first create a uniform citation form for use. He asked the Councilmembers if they thought it would be appropriate to have Mayor Liz6e contact the South Lake Minnetonka Police Department (SLMPD) about the City's desire to move forward with this. Administrator Heck stated he has spoken with Excelsior's City Manager and Tonka Bay's City Administrator about this. They all agreed that overtime it would be appropriate to involve the SLMPD. It is his understanding that the maximum fine that can be issued is $60. He will draft a document describing the legislation that was passed. Councilmember Zerby stated he did not want to be a pioneer in implementing such a process. Heck commented there are some cities that have been doing this already. There was consensus to table this until after the 2010 budget process is complete. 11. STAFF AND COUNCIL REPORTS A. Administrator and Staff Director Brown stated the temporary cellular antenna has been removed from the SE Area Water Tower site. Public Works will begin to restore the site's turf towards the fall. The cellular provider is working on remounting the antenna. Staff is working with the antenna contractors on some compliance issues on both the SE Area Water Tower and the West Water Tower. Public Works should be done flushing the watermain by the end of the week. The damage on the lights in Freeman Park that need repair is beyond what Xcel Energy will cover per the City's agreement with Xcel; therefore, Staff is finding an electrician to do the repairs. The administrative staff from Shorewood, Tonka Bay and Hennepin County are reviewing the close out of the County Road 19 and Smithtown Road intersection project. Tonka Bay has expressed come concern about the final numbers. He explained that there were at least 37 - 38 properties involved in easement acquisition and each of those acquisitions is being reviewed; Hennepin County indicated it had spent a considerable amount of labor resource on that part of the project. Councilmember Woodruff requested Brown provide Council with a report on what the financial impact of tine closeout could be to the City during the June 22nd budget work session. Engineer Landini stated three property owners have responded to the survey monkey survey for the Harding Avenue and Harding Lane for the watermain extension. Three property owners have responded; one positively and two negatively. Councilmember Bailey questioned if Staff was sure the possible installation of watermain was clearly communicated to the property owners. Landini said the letters he sent them included where the funding would come from for the roadway improvements, the storm water improvements, sanitary sewer improvements and watermain improvements. Bailey stated he had previously asked for an informational copy of the letter to the property owners. He hoped there would be a frank discussion during the June 22nd Council meeting public hearing for this project. Councilmember Zerby stated it prudent to identify what roadways would be considered for reconstruction or reclamation next, and to do the feasibility study and design work in 2009 with the actual repair work being done in 2010. This would place roadway projects on an 18-month timeline and help ensure they are done during prime road construction season. Administrator Heck stated there is a an Excelsior Fire District (EFD) budget work session scheduled for June 10, 2009, at 6:00 P.M. for all five member cities' councils. - -U!! AR COUNCIL MEETIN,;..-... J Jcr Page] B. Mayor and City Council Councilmember Bailey stated it is important for the Council members to review the proposed draft EFD 2010 budget. If they have questions and are unable to attend the joint meeting of councils then they should let him know of their concerns. He explained that the budget reflects an overall zero percent increase over the adopted 2009 budget. Although he was not happy about it, EFD Chief Gerber accepted there would be no wage increases in 2009. The operating budget includes a $120,000 required contribution to the Excelsior Firefighters Relief Association pension fund. Part of the contribution will be funded out of General Fund reserves and Fire Facilities Fund reserves, which he thought was appropriate. The remainder carne through budget reductions. The FED Board had discussions about whether or not the use of reserves was too aggressive; it concluded it wasn't. He thought the use of reserves could be replicated for 2011 but not beyond that. He applauded Gerber for his positive attitude through the process, noting that it is not what Gerber would have preferred to do. He stated Gerber had prepared a list of restoration priorities should the required contribution be less than what is projected. The actual contribution won't be known until August 1 sr Councilmember Turgeon asked Mayor Lizee to summarize the South Lake Minnetonka Police Department budget work session held on June 3rd which they both attended. Lizee stated SLMPD Chief Litsey provided an overview of his first draft budget. Some details of the budget cannot be worked out until the impact of program cuts is known. She stated Chief Litsey wants to attend a Council meeting and give a presentation to Council, but the SLMPD Coordinating Committee won't have had time for another work session prior to the June 22°d Council meeting. Mayor Lizee stated 29`x' Art on the Lake event is scheduled for June 13`x' and 14r". 12. ADJOURN Turgeon moved, Woodruff seconded, Adjourning the City Council Regular Meeting of June 8, 2009, at 8:55 P.M. Motion passed 510. RESPECTFULLY SUBMITTED, Christine Freeman, Recorder ATTEST: - Brii n41edk,_City Administrator/Clerk . ' a"ra Turgeon, Acti> 6 Mayor