082409 CC Reg Min5755 COUNTRY CLUB ROAD
COUNCIL CHAMBERS
7 :00 P.M.
Mayor Lizee called the meeting to order at 7:02 P.M.
A. Roll Call
Present. Mayor Lizee; Councilmembers Bailey, Turgeon, Woodruff and Zerby; Assistant
Attorney Sonsalla; 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 10.A.2, South Lake Minnetonka Police Department 2010
Operating Budget, be added to the agenda.
Zerby moved, Turgeon seconded, approving the agenda amended. Motion passed 510.
2. APPROVAL OF MINUTES
A. City Council Special Meeting Minutes, August 10, 2009
Woodruff moved, Zerby seconded, Approving the City Council Special Meeting Minutes of August
10, 2009, as presented. Motion passed 5/0.
B. City Council Work Session Minutes, August 10, 2009
Zerby moved, Woodruff seconded, Approving the City Council Work Session Minutes of August
10, 2009, as presented. Motion passed 510.
C. City Council Regular Meeting Minutes, August 10, 2009
Turgeon moved, Woodruff seconded, Approving the City Council Regular Meeting Minutes of
August 10, 2009, as presented. Motion passed 510.
IIt - -17:1
Mayor Lizee reviewed the items on the Consent Agenda.
Turgeon moved, Zerby seconded, Approving the Motions Contained on the Consent Agenda and
Adopting the Resolutions Therein.
A. Approval of the Verified Claims List
CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES
August 24, 2009
Page 2 of 13
. Adopting SOLUTION NO 09 ®045 "A Resolution Appointing Richard F. Rosow
as an Administrative Enforcement Officer,"
C. Authorizing Submittal of the Three Rivers Park District Regional Trail System 2009
t_1 `r
Restated 1:11. Adopting RESOLUTION NO 09-046, "A Resolution Approving an Amended and
Declaration
Motion passed 5/0.
4. MATTERS FROM THE FLOOR
Mayor Liz& explained that Council would hear comments and questions from the public this evening but
it could not take any action on them this evening. If Council chooses to respond to the items they would
be placed on a future agenda for discussion.
Noel Neuman, 8340 50` Avenue North, New Hope stated he is the current Commodore for the Upper
Minnetonka Yacht Club (UMYC). He stated there were other UMYC members present this evening as
well as other concerned residents. He explained they were present this evening to do something
courageous; they wanted Council to end the conflict between the UMYC and the City. He thought
Council had been given a lot of misinformation about the UMYC and what it's about. The UMYC is a
volunteer organization comprised of more than 68 families. Its average member is 45 years of age and the
members are professional home owners. Most members have been part of the UMYC for more than eight
years, noting some are the founders of the Club and have been members for more than 40 years. The
members participate in planning and executing events throughout the year, they maintain the club
property and they provide the sailing school program. The membership is concerned about their desire to
improve the relationship between the UMYC and the City; the conflict has gone on long enough.
Ann Leavenworth stated she had called and spoken with a few of the Councihnembers earlier in the day.
She stated the UMYC has made an effort to be a good citizen for more than 40 years. She explained that
when it was created almost every resident on the south shore in the area was a member of the club. Many
of the residents' children sailed out of the UMYC. She conveyed the UMYC has made a concerted effort
to follow the City's rules. The members feel that the UMYC have been harassed enough by neighbors
who do not want the UMYC to exist in its current location. The membership would like the issues
between the UMYC and the City to be settled for good. The UMYC wants to remain at its current
location. The membership wants its children and grandchildren to continue to sail.
Mr. Neuman stated he thought there would continue to be residents that would make exaggerated claims
about behavior at the UMYC. He thought their purpose is really to maintain conflict between the City and
the UMYC so the membership would tire of it and relocate. The membership does not want to relocate.
The UMYC believes it has been a good citizen and operated according to the rules. He stated the City and
the UMYC needs to establish mutual respect and improve communications rather than continuing the
conflict. There needs to be civilized discourse and he did not believe that can occur when lawyers are
involved. He asked Council to have courage and accept the appeal ruling from the court and put that
behind the parties involved. He asked Council to repeal Resolution No. 07 -067. He also asked Council to
appoint a senior City staff member to serve as the liaison between the City and the UMYC so future
issues can be resolved quickly and efficiently.
CITY OF S ORFWOOD REGULAR COUNCIL, MEETING MINUTES
August 24, 2009
Page 3 of 13
Mayor Lizee thanked Mr. Neuman for his stewardship. She asked Administrator Heck to speak for the
Councils
Administrator Heck stated that Council met in executive session earlier this evening to discuss the ruling.
During the meeting Council directed staff to meet with members of the UMYC. He indicated he would be
willing to meet with the representative members the following day in the afternoon. Mr. Neuman stated
he would be open to doing that. Heck stated he would let Mr. Neuman know the time of the meeting.
None.
6. PUBLIC NEARING
None.
7. PARKS
Commissioner Robb reported on matters considered and actions taken at the August 11, 2009, Park
Commission meeting (as detailed in the minutes of that meeting).
A. Approval of Expenditure of Funds for Bicycle Racks for the Parks
Mayor Liz& noted the meeting packet for this evening contained information about the proposed
purchase of seven bike racks for location in the City's parks. She asked if Administrator Heck had
anything to add to that.
Administrator Heck stated the cost of $1,756.02 to purchase the seven bike racks does not include the cost
of labor to install them. He thought Director Brown had indicated Public Works staff could do that
installation.
Councilmember Turgeon asked if it would be more appropriate to delay the purchase of the racks until the
spring of 2010 if there is a possibility that the racks would not be installed this year. Director Brown
explained the scheduling of Public Works staff can be dynamic. If the City purchases the racks now then
that staff can take advantage of any availability of time on short notice. He indicated he asked the Park
Commission to grant staff flexibility in timing of the installation.
Turgeon moved, Bailey seconded, approving the purchase of seven "5 loop bike racks" from
Gametime MN/WI Playgrounds for an amount of $1,756.02. Motion passed 5/0.
8. PLANNING
Director Nielsen reported on matters considered and actions taken at the 18 August 2009 Planning
Commission meeting (as detailed in the minutes of that meeting). He elaborated on the neighborhood
meetings scheduled to discuss the Comprehensive Plan update. The meetings are scheduled for 15
September 2009, 29 September 2009, and 6 October 2009. They will be held from 5:00 P.M. to 7:00 P.M.
The meetings will be an open house style meeting. There will be five stations set up. Four of them are for
the four different chapters in the Plan. The fifth station will be for the Area Plans being reviewed that
particular evening.
CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES
August 24, 2009
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Am Zoning Ordinance Amendment Relating to Signs in the Parks
Director Nielsen explained during its May 11, 2009, meeting Council adopted a resolution denying a
request by South Tonka Little League (SILL) for an amendment to the City Code that would allow
advertising signs to be placed on some of the ball field fences in Freeman Park. During that meeting
Council directed Staff to explore allowing the signs through some sort of contract between the City and
STLL. Staff determined that would require an amendment to the Code setting forth the authority to
execute such a contract. Staff identified an alternative for STLL to apply for a conditional use permit
(C.U.P.) to display advertising signs. A condition of the C.U.P. would be to enter into a license agreement
with the City to do so.
Nielsen then explained the Park Commission reviewed this proposed text amendment and STLL's request
for a C.U.P., including a license agreement, during its July 14, 2009, meeting. The Commission asked for
additional information, and continued the item to its August I I "' meeting. The Commission wanted to
have a provision included restricting the content on the sign. It also wanted a provision included about
indemnification of liability for the signage. The City Attorney has explained the City can regulate the
content because it owns the property, and she recommended that provision be incorporated in the license
agreement.
Nielsen went on to explain the Planning Commission held a public hearing on the text amendment during
its July 21, 2009, meeting. The Commission recommended not to approve the text amendment to the City
Code. It also recommended denying the C.U.P. request fi•om STLL. If Council decided to approve the text
amendment and intended to approve the C.U.P, then the Commission recommended the license agreement
be revised to include a provision indemnifying the City from any theft or vandalism to the signs and a
provision restricting the content on the signs. During its August 11, 2009, meeting the Park Commission
also recommended denying the text amendment and the C.U.P. request.
Nielsen stated the meeting packet for this evening contains a draft text amendment to the City Code. He
explained if Council chooses to approve some version of a text amendment, then Council should direct
Staff to draft a resolution approving the C.U.P. and to draft a license agreement.
Coumcilmember Bailey asked what the license fee will be. Director Nielsen stated that has not been
finalized, but the amount of $100 - $150 had been suggested. The temporary signage fee of $20 applies to
each individual sign. Bailey stated he wanted to keep the total cost as low as possible. He understood the
need to charge some fee for staff time, but lie did not think it was necessary to charge the temporary
signage fee unless there is a legal reason to do so. He noted the STLL is a nonprofit organization and the
purpose of the signs is to generate funds for the organization.
Colmcilmember Bailey stated there had been discussion about taking the signs down between the two
little league programs each year. He asked if that was going to be included in the license agreement.
Director Nielsen stated something addressing that would be incorporated into the license agreement.
Colmcilmember Turgeon stated that during the Planning Commission's July 21 meeting, Pat Eagan, with
STLL, stated STLL would prefer not to take the signs down between the spring and fall little league
seasons. He thought it would be easier to keep the signs up throughout the entire little league season.
Kyle Heitkamp, representing the STLL Board explained the spring little league season starts in mid -April
and it technically ends near the end of June. After that the fields could be utilized throughout July for the
all star process. Fall little league begins the third week in August and runs through the first week of
October this year. He indicated STLL will be open to doing what ever Council thinks is appropriate.
CITY OF SHOREWOOD REGULAR COUNCIL. MEETING MINUTES
August 24, 2009
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Councilmember Barley suggested the signs be allowed to stay up between May I" and September 30`
each year. He explained there is a lot of wear and tear on signs when they go up and down, and when they
are stored. He stated the leaves start to appear on trees the beginning of May and the signs will be less
visible.
Councilmember Bailey asked if someone was going to be judging the content on the signage in advance
of them being displayed. Director Nielsen stated that is unclear. Nielsen thought SILL would be very
cautious about the content on the signs. He stated there could be something added to the license
agreement about prohibiting content relating to alcohol, tobacco and adult content. Bailey stated he
assumed the City could take down a sign with questionable content. Bailey indicated he was not in
support of staff or Council pre - evaluating the signs' content.
Councilmember Bailey stated he understood the Planning Commission and Park Commission are not in
support of this, noting he respects the Commissions' opinions. But, he considers this to be a reasonable
action on the part of the City. The sports organizations serve the citizens of the City. He thought
sponsorship signage is a "cashless" way for the City to help the sports organizations. He indicated he did
not think people would find the signs objectionable, and he thought the signs would actually add a little
color to the park. He explained some of the other Councihnembers have expressed concern about other
sports organizations wanting to display similar signage. He stated he would not have a problem with other
organizations in fenced -in areas doing the same thing. He then stated what was being discussed is local
sports organizations being supported by local businesses for the sake of kids playing sports. He expressed
that he did not find anything about displaying sponsorship signs objectionable. He stated that although he
respects the opinions of the Commissions he thinks approving this is the right thing to do.
Councilmember Turgeon stated she thought STLL's request is to display signs on the fences in Field l
and Field 3 in Freemen Park. Director Nielsen stated that was discussed during the Planning Commission
meeting, but nothing was decided upon. He clarified the license agreement is specific to STLL's request,
and that would be for Fields 1 and 3. If the Babe Ruth league wants to display signs on the fences in Field
2, it would have to submit a C.U.P. request.
Councilmember Turgeon stated she did not think the City could legally deny displaying signs on other
fences in Freeman Park. She asked what the criteria would be to not allow signs to be displayed on other
fences. She stated she understood this would apply to Fields l and 3 in Freeman Park only. Director
Nielsen explained the C.U.P. starts out be saying the organization has to be licensed to use the facility in a
park.
Councilmember Turgeon stated the Planning Commission had discussed that if signs were allowed on
other fences in Freeman Park there could be up to 95 signs displayed. She commented that one of the
Commissioners had also stated it took the City eight years to have a billboard taken down. Mayor Lizee
stated that was a different situation. Director Nielsen explained that the license agreement has to be
approved annually; therefore, the City has the opportunity to reevaluate the situation at least yearly. The
City could decide to limit the number of signs it allows to be displayed. A sports organization does not
have vested rights to display signs once it has been approved to do it one time.
Councilmember Bailey stated if 90 temporary sponsorship signs were allowed that would amount to
$50,000 for the sports organizations and that is significant money for them. He explained he spent many
years trying to raise funds for sports organizations, and he thought having the ability to generate that
much money would be a wonderfiul thing. It would not be a disaster.
CITY OF SHOREWOOD REGULAR COUNCIL MELTING MINUT ES
August 24, 2009
Page 6 of 13
Councilmember Woodruff recapped the history Director Nielsen had already described regarding the
process that has occurred to date in considering this request. He stated the text amendment and the C.U.P.
do not address the potential proliferation of signs.
Woodruff moved, Turgeon seconded, denying the approval of an ordinance amending Chapter
1200 of the Shorewood City Code regarding temporary signs.
Councilmember Bailey stated the design of this process is flexible. The license agreement can be
modified with ease each year. He's not concerned there will be an excess of signs in the beginning, and if
it becomes a problem it can be dealt with easily. He thought it would be short- sighted to deny the request
because it helps sports organizations raise funds.
Mayor Lizee stated she echoed Councilmember Bailey's comments. She then stated she appreciates his
support.
Councilmember Zerby stated he also echoed Councilmember Bailey's comments. He thought signage in
the parks is something that is controllable from year to year. He thought the STLL's request is a good test
case. It would be worth a try because it helps a sports organization with raising funds to help additional
children participate. Sports organizations sell items to raise funds and the City does not require that to be
licensed although technically it could. This would be going through a proper legal process. He thought the
display of signs would be a nice addition when watching sports.
Motion failed 2/3, with Bailey, Lizee and Zerby dissenting.
Bailey moved, Zerby seconded, Approving ORDINANCE NO. 461 "An Ordinance Amending
Chapter 1200 of the Shorewood City Code (Zoning) Regarding Temporary Signs." Motion passed
3/2 with Turgeon and Woodruff dissenting.
Councilmember Turgeon expressed her disappointment that Council approved the ordinance after the
Park and Planning Commissions recommended against it, noting they are appointed bodies. She noted
there were a number of historians on the Commissions. She stated she thought the Commissions provided
sound rationale for doing so. She found it disheartening to go against the Commissions.
B. Conditional User Permit — South Tonka Little League
Director Nielsen stated this item is to consider South Tonka Little League's request for a conditional use
permit to display sponsorship signs on the fences in Fields 1 and 3 in Freeman Park. A condition of the
C.U.P. is the approval of a license agreement between the City and STLL. He noted that earlier in the
meeting Councilmember Bailey suggested the signs be allowed to be up from May 1 st through September
30` each calendar year, and that stipulation be incorporated into the agreement. He stated Staff will have
to come back with a more firm recommendation on the fee schedule. Council can also decide not to
charge a few for each individual sign.
Councilmember Zerby asked if the City has to charge a license fee. Associate Attorney Sonsalla
explained the City has to have some consideration for the license agreement. She recommended the City
charge STLL the same amount for each temporary sign as it charges for other temporary signs so that
everyone is treated the same. The cost could be reduced based on the amount of the license fee.
Director Nielsen stated the City's current fee for a temporary sign is $20.00, and that sign is allowed to be
up for 10 days at a time.
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August 24, 2009
Page 7 of 13
Councilmember Bailey stated it could make sense to call it a seasonal sign. Director Nielsen noted the
amendment just approved is included in the temporary sign ordinance. Nielsen stated maybe the license
fee could be lower if money is a concern. Bailey asked if the license fee could be reduced to zero and the
temporary sign permit fee remain the same. He thought it appropriate to maximize the amount of
fundraising dollars that can be obtained through the display of the signs. He could support either keeping
the license fee at zero or classifying these signs as seasonal signs and reducing or eliminating the fee for
them.
Councilmember Turgeon asked if a commercial business does a find raiser would the same reductions
apply to them. She expressed concern that other 501C(3) licensed organizations would want to pay no
license fee.
Councilmember Bailey stated he is unable to find the "slippery slope" some of his distinguished
colleagues on the Council are trying to find. If there was any slope at all it would be very small, and he
did not think the City was going to fall down that slope. There are many ways to stop the display of
signage at any time. He did not think there is a reason to hold up STLL's request. He expressed he was
willing to take a marginal risk in allowing the display of signs in the parks.
Bailey moved, Zerby seconded, directing Staff to prepare a resolution approving the conditional use
permit and license agreement for South Tonka Little League that allows STLL to display
sponsorship signage on Fields 1 and 2 in Freeman Park with the term of the license agreement to be
from May 1 St to September 30 and with the fee for the license zero dollars.
Councilmember Woodruff stated because the ordinance amendment was passed he will vote in favor of
the motion. He thought this could become problematic if many other sports organizations request the
approval to also display signs.
Councilmember Zerby stated he thought the City has implemented a good process to allow STLL to
display sponsorship signage.
Motion passed 4/1 with Turgeon dissenting.
Mayor Lizee thanked the Councilmembers, the Staff, the Planning Commission and the Park Commission
for their time and effort spent on this. She stated the Commissioners are appointed by Council, and
Council does look to them to provide Council with information and background. She noted the Council
also has a number of historians on it. She stated she thought Council considered this in depth, and then
made a fair decision.
9. ENGINEERING/PUBLIC WORKS
A. Award Contract for the 2009 Road Rehabilitation Projects, City Project 09 -02 and
09 -03
Motion passed 510.
10. GENERAL/NEW BUSINESS
A. Recycling Contract
Administrator Heck stated that per Council's direction Staff issued a request for proposals (RFP) for
recycling collection services in July. The City received responses in August from Allied Waste and Waste
Management. He explained Veolia, the City's current provider, chose not to submit a proposal because it
would be too expensive for them to provide services to just one city in the area. Waste Management
provided a proposal for dual -sort, weekly collection. Allied Waste's proposal is for single -sort, bi- weekly
collection and it will provide the collection cart. Both companies were asked to provide a bid for both
dual -sort, weekly collection and single -sort either weekly or bi- weekly collection. He stated Council had
been provided with copies of the proposals. He explained it's up to Council to decide what type of
collection system it would like to have for the City. Once it makes that decision it would by default select
the hauler.
Councilmember Woodruff asked what rate the City pays Veolia for its current collection system as he
would like to determine the cost impact on the residents. Director Burton stated she did not have that
information readily available. Administrator Heck stated he did not have that information either.
Councilmember Woodruff stated Waste Management's proposal was non - responsive on a number of
points and he was surprised by that. He explained the recycling survey the City conducted via the internet
indicated a lot of residents would like to have a single -sort system, and a lot of residents would like to
have a weekly collection system. Neither proposal is for both. Council has discussed the rewards program
offered by Allied Waste, but he questioned what the cost to the residents would be. He asked if the City
would want to enter into a 36 -month contract or a 60 -month contract if Allied Waste was selected as the
hauler. He thought a 60 -month contract would make sense provided the City would be able to break the
contract if Allied Waste was not performing adequately. Administrator Heck explained the existing
contract with Veolia requires Veolia to provide the City with volume collection of reports.
Councilmember Turgeon asked if the responders were asked what the cost would be for recycling
collection services if they provided both recycling collection and City -wide waste management services.
Administrator Heck stated the RFP did not ask that question. He noted that organized collection has been
met with resistance in many cities. Turgeon commented this may be an appropriate time to go with just
one waste management hauler.
Councilmember Zerby stated organized waste management services warrants discussion, but right now
Council needs to focus on recycling services. He indicated he likes the Allied Waste proposal. He
explained he has spoken with a people who have indicated they recycle more and have been able to
CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES
August 24, 2009
Page 9ofl3
reduce the size of their garbage container thereby reducing their cost. Be stated be was unsure if the
ReuycleBank program vvmo\d be beneficial. Couuni|nourober Woodruff stated there is some anecdotal
evidence stated in the information provided that participation increases because of the program. Woodruff
again questioned what it will cost each household.
CouuuUmuunzherZerbv stated he found out that the oou<zooi price from \/eo|iup/aa $2.50. Couuci|nneoubcr
Woodruff stated based ou that Allied Waste's cost with the RecYo|eBuuk program v/oo|d cost residents an
additional $245 per month for recycling oorviouu for o60-nuoutb program. Zorhv stated the n:`purdo may
offset that ooaL Woodruff stated the rcvvorda are based on bup/ much all the n:aidecda participate. He
thought it was u grout incentive. Zurby stated it would provide the City with additional information on
bow well the recycling program is working. Woodruff thought the increase to residents was modest.
Cnnoci|nnemubcr Bailey stated he was surprised Staff did not have u recommendation. He `puu|d have
appreciated Staff providing Council with u list ofpros and cons. After having read through the two RFps
once he uunze to the uouo|uuiou that Allied VVoote wanted the City's business more. He stated he would
have appreciated feedback about ]low other cities viewed the Ducyo|eDunkprog7mn. He stated he was not
sure that he likes the fact that residents would all receive the same incentive rogund|cox of how much they
actually recycled; it's based on the total collected in the City. He cautioned Council to make sure it was
not signing up for upnng,uon that wasn't all that beneficial.
Councilmernber Zerby stated he agreed with some of the cornments while noting that Council will be able
io look u1 the contract before it's approved.
Zwrby moved, Woodruff seconded, directing Staff to enter into negations with Allied Waste to
provide oimglo-uort,bi-wookly recycling collection services, including the RuoyoleBumk, feature for m
term mf60-muooths.
MoyorI.iz& stated when she lived in Seattle, Washington, more than 20 years ago; she had single-sort,
p/hoo|-oud, bi-weekly collection services. The uuda were filled. She expressed it was time to bring the
City into the 2|" century with »ouurd to recycling services. She has heard residents tell her that they
would recycle more if they didn't have to carry their small containers of recycling up to the ubeci. She has
spoken with staff and residents in sister odiva that have u single-sort collection xyatnno and they like it.
She expressed her support for a single-sort aye<cnn. She stated the difference in the two proposals was
significant.
Counoi|monzhcr Bailey abated he did not dispute any of Mayor Liz6c"m uomnnoo(u. He asked
&donioiotntn, Fluuk if he had spoken with staff u1 other cities about their experiences with /\||iod VVooto
and the Q±cyo|eIlxnk feature. Administrator Heck ato1od he did not think that either Excelsior orTonka
Bay has the ReuyuluDuukfeature.
Waste Erik Schuck, General Manager for Allied explained the company currently has Qocyo|oBank
installed in approximately 30"000 households in the twin cities area. The City of Maple Grove has
installed it and it has approximately 22,000 residents. The City of Excelsior has approved it. Allied Waste
has the program in the ^^fruo subscription ruurkot" in the Cities of Chaska, Chanhassen, Eden Prairie,
Bloomington, and Richfield. By the end of the year hwill bein all uf the "free markets" itservices.
CounoUruennbe, Bailey asked how rovvurdo are offered to the n:midouta. Mr. 3ohook explained there are
multiple ways they are delivered. Currently they are delivered by mail. There is an on-line shopping cart
o:midcrAa can mc1eu< hnru. Allied Waste is onnundy working on digital options. Bailey asked if the City
was not pleased with the administration of the RecycleBank program if it could terminate that portion of
CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES
August 24, 2009
Page 10 of 13
the contract. Mr. Schuck stated he was not prepared to answer that because there is some cost to Allied
Waste to implement the program. Bailey stated he was not saying the program was not a good idea, but he
expressed concern that because it was a relatively new program that it may not be administered correctly.
Mr. Schuck stated that within the first two months of implementing the program in Maple Grove there
were more than 65 percent of the households participating in the RecycleBank program.
Councilmember Turgeon stated based on the results of the survey a bi- weekly collection schedule was not
endorsed as much as a weekly cycle. Mayor Lizee stated a bi- weekly collection schedule works well
when provided a larger - wheeled container, and the information Allied Waste provides about the schedule
is helpful. Allied Waste makes a significant effort to educate and entice residents to participate. She noted
the City's recycling participation has fallen off.
Motion passed 4/1 with Turgeon dissenting.
Mayor Lizee stated the City's portion of the South Lake Minnetonka Police Department (SLMPD) 2010
Operating Budget is incorporated in the City's proposed 2010 General Fund Operating Budget. She stated
it's prudent to take action on the proposed SLMPD 2010 Operating Budget.
Councilmember Woodruff stated he thought it was appropriate to approve the SLMPD 2010 Operating
Budget as a separate item just as Council had done with the Excelsior Fire District 2010 Budget.
Woodruff moved, approving the South Lake Minnetonka Police Department's 2010 Operating
Budget dated July 29, 2009, which reflects a 0.7 percent increase over the adopted SLMPD 2009
Operating Budget.
Councilmember Woodruff expressed his disappointment that the SLMPD Coordinating Committee was
unsuccessful in reaching a budget that would reflect a zero percent increase over the 2009 adopted
budget, noting that is what some of the Councilmembers had requested. He noted the 0.7 percent increase
is less than the Implicit Price Deflator which is 0.8337 percent which would have been the default
increase if the budget were not approved. He stated he did not think it was a bad solution, but it was not
what some Councilmembers wanted.
Zerby seconded the motion.
Councilmember Zerby stated he was pleased with the SLMPD 2010 Operating Budget. He noted the
budget reflects a decrease in both expenses [0.3 percent] and revenues [8.5 percent] thereby resulting in a
slight increase in contributions from the SLMPD member cities. He thought the SLMPD Staff and the
Coordinating Committee did an excellent job in dealing with the issues and providing the community
with a public service that is indispensable. He did not think it was appropriate to dictate service based on
price.
Mayor Lizee stated she agreed with Councilmember Zerby's comments. She explained the SLMPD
Coordinating Committee is comprised of the mayors of the four SLMPD member cities. In order for the
SLMPD Operating Budget to be passed all four member cities' councils must approve it. She noted the
Excelsior, Greenwood and Tonka Bay City Councils have approved the budget. She stated the
Coordinating Committee did take the current economic climate and its impact on the member cities into
account very heavily when discussing the budget. She explained SLMPD Chief Litsey did come before
Council to discuss the budget, and he has extended an invitation to discuss the budget with the
CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES
August 24, 2009
Page 1 t of 13
Councilmembers. She stated she thought it was incredible that the budget increase over 2009 could be
kept to 0.7 percent. She commented that a zero percent increase has been referred to as an arbitrary
number.
, = „
C> . 2010 Proposed
Finance Director Burton stated the 2010 Proposed General Fund Operating Budget being considered this
evening was included in the meeting packet for this meeting. This budget is the result of numerous
Council and Staff work sessions. This preliminary budget must be certified to Hennepin County and the
State by September 15, 2009.
Burton explained earlier in the day the city received its Pay2010 Levy Limit Notice. The final base limit
is $4,263,838. It is $70,704 higher then the base levy of $4,193,134 in the proposed budget. It appears the
base levy was calculated using the proposed 2009 levy adopted by the city council in September 2009
rather than the final levy adopted in December 2009. She stated she had contacted the State today to
ensure the calculations were correct; they are.
Burton then explained Council has two options to consider when adopting the proposed budget. The first
option is to adopt the levy and budget as presented in the budget document and resolution included in the
meeting packet for this meeting. The second option is to change the preliminary levy to the amount
certified in the Pay2010 Levy Limit Notice from the State dated August 24, 2009. The difference of
approximately $70,000 would be displayed as a contingency line itern in the Mayor and Council
Department Budget. The discussions about the disposition or elimination of this extra amount will occur
in the fall prior to the final budget and levy adoption. If Council should decide to choose the second
option a revised resolution has been provided for Council's consideration.
Councilmember Bailey stated he thought it would be prudent to increase the levy to the maximum amount
allowed because the 2011 final base limit will be based on the 2010 proposed levy approved this evening.
He noted that he will want the final levy to be no more than what is included in the meeting packet for
this meeting.
There was Council consensus to approve the higher proposed tax levy.
Bailey moved, Turgeon seconded, Adopting RESOLUTION NO. 09 -048 "A Resolution Setting the
2010 Proposed General Fund Budget and Approving the Proposed 2009 Property Tax Levy
Collectible in 2010."
Administrator Heck explained that prior to 2009 the State's levy limit law stated a city was penalized if it
did not levy the maximum allowed. That law has been changed such that the allowable levy is calculated
on the maximum amount that could have been levied.
Councilmember Woodruff stated he would also want the final levy to be no more than what is included in
the meeting packet for this meeting. He thought that increase amount is 0.69 percent. This proposed
budget includes the transfer of reserves to cover some of the operating expenses. He asked Staff to
determine what the General Fund Reserves will be at the end of 2010 if Council were to approve the
proposed General Fund Operating Budget included in this meeting's packet relative to the General Fund
Reserve Policy. Director Burton stated Council will be provided that information for budget work
CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES
August 24, 2009
Page 12 of 13
sessions this fall along with information about the impact on the average Shorewood homeowner for
2010.
Motion passed 510.
1 1VII I !if 1
Director Burton stated the resolution included sets the Truth -in- Taxation hearing date for Monday,
December 7, 2009, with a follow -up hearing and budget adoption during the December 14, 2009, Council
meeting.
Turgeon moved, Zerby seconded, Adopting RESOLUTION NO. 09 -049 "A Resolution Setting the
Truth -In- Taxation Public Hearings on the Proposed 2010 Budgets and the 2010 Property Tax
Levy." Motion passed 510.
11. STAFF AND COUNCIL REPORTS
Administrator Heck stated staff has developed a list of core values. Department heads attended their
second performance evaluation training session. The next step in the process is for the consultant to help
the department heads to identify tasks and criteria. There is a Council work session scheduled to discuss
the utility rate study. He has been working with the City's Building Inspector on the punch list for the
City Hall renovation project. He is evaluating a project tracking system written in Microsoft Access. He
will be discussing that during an upcoming staff meeting. He has become a Credentialed City Manager by
the International City /County Managers Association.
Director Nielsen stated the Gideon Glen Memorial Bench was in the process of being installed.
Councilmember Woodruff stated it is his understanding the City was going to purchase a new LCD
projector for the Council Chambers. He asked what the status of that was. Administrator Heck stated that
will be installed this week.
Councilmember Woodruff thanked Staff for getting blinds installed in the Council Chambers.
Director Brown stated roadway seal coating will begin on August 25` and the process should take two
days. The roads will be posted no parking. The parking lot at City Hall will also be seal coated.
Councilmember Zerby asked if the signs for Smithtown Road have arrived. Director Brown stated they
have been ordered, noting it takes about three months for a larger order of customized signs.
A. Mayor and City Council
Councilmember Woodruff stated he is again participating in the Metro Cities Committee on Revenue and
Taxation Policy. He will provide Council with electronic copies of the revised policies and would like to
receive feedback prior to the next meeting on September 15"'. The City will have the opportunity to vote
on the policies in November.
Mayor Lizee stated the South Tonka League of Women Voters is sponsoring its annual lively issues
forum which is scheduled for September 10"' and will be held at City Hall. The six majors from the South
Lake area are invited to participate. She then stated she will have a coffee with the mayor session on
September 12` The location will be the Excelsior Library parking lot during the book sale on Apple Day.
CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES
August 24, 2009
Page 13 of 13
12. ADJOURN
Turgeon moved, Woodruff seconded, Adjourning the City Council Regular Meeting of August 24,
2009, at 8:42 P.M. Motion passed 5/0.
q D.&TA I Num DID,
Christine Freeman, Recorder
r ristj
istine Liz6e, Mayor