110909 CC WS MinCITY OF S OREEWOOD
CITY COUNCIL WORK SESSION
MONDAY, NOVEMBER , 2009
5755 COUNTRY CLUB ROAD
COUNCIL, CHAMBERS
5:30 P.M.
Mayor Liz& called the meeting to order at 5:30 P.M.
A. Roll Call
Present. Mayor Lizee; Councilmembers Turgeon, Woodruff, and Zerby; City Administrator
Heck; Finance Director Burton; Director of Public Works Brown; and Engineer Landini
Absent: Councilmember Bailey
B. Review Agenda
Turgeon moved, Woodruff seconded, approving the agenda as presented. Motion passed 4/0.
ENTERPRISE BUDGET DISCUSSION
Director Burton stated the first draft of the Capital Improvement Program (CIP) for 2010 — 2014 will be
discussed this evening. She explained the CIP is a planning tool which lists potential significant
infrastructure improvements and equipment purchases. She noted each project on the CIP must still be
approved by Council. She suggested Council discuss the CIP on a department by department basis.
Burton stated the first area to discuss is equipment replacement. She explained the information was taken
from the 20 Year Equipment Replacement Schedule for the Public Works Department which was
prepared by Director Brown.
Director Brown stated he has shifted the replacement schedule for a couple of pieces of equipment from
what Council has been presented in the past. He explained the plowing of walks and trails in the City are
taking a toll on the grounds master equipment. Blowers are put on the lawn mowers for plowing. The
replacement of the skid steer unit has been delayed for a number of years. Its replacement and a blower
attachment for it are now scheduled for 2010. Other minimal shifting of a year or two was done to try and
level out capital outlay.
The following clarifications, comments and suggestions were made with regard to equipment
replacement.
➢ The primary use of the Ford 3910 Tractor has reached the end of its service life. Its
primary use is for roadside mowing. The rear and side flail mowers which are attached to
the Tractor are too heavy for it. The Tractor and flail replacements must be more
appropriately matched. A seeder can be attached the back of the Tractor for seeding. A
posthole auger as well as other pieces of equipment can also be attached as needed.
Director Brown explained the City is a member of the Cooperative Purchasing Venture
(CPV) with the State of Minnesota. The State Contract prohibits purchasing the five -year
powertrain warranty for the proposed Ford F 350 pickup truck from any one other than
ITT OF SHOREWOOD WORD SESSION MEETING MINUTES
November 9, 2009
Rage 2 of
Ford. That truck does not come with the same type oftimelmiles powertrain warranty as,
for example, an autornobile. The State bids that warranty as a separate contract.
➢ The consent agenda for this evening's regular Council meeting contains a motion to
approve the replacement of the City's F 350 truck. The price does not include sales tax,
use tax and license fees. Councilmember Woodruff suggested the motion be modified to
indicate the price does not include those costs. Councilmember Turgeon asked the
estimated costs for those items be included in the motion.
➢ Zerby questioned if the City had the correct number of dump trucks. Director Brown
explained the City's dump trucks are all around service vehicles. For example, they are
used to haul gravel, debris from tree removals, asphalt patching, deicing chemicals, top
soil, rain barrels, and so forth. The City has five large dump trucks, one one -ton dump
truck (which is used for things such as shovel patching, top soil operations and minor
tree trimming), and one flatbed truck (which is used for hauling asphalt equipment). The
snow plow vehicles are used 8 — 10 hours per snowfall, and that can go up to 12 hours
for snowfalls of more then 3 — 4 inch. There have been a number of times in the last few
years when some vehicles were out of service. There is seldom a day when the trucks are
not being used.
➢ Councilmember Woodruff suggested there be a reserve policy for each fund identified in
sources and uses of funds section of the CIP. Director Burton stated that one of her 2010
goals is to review all of the City's financial policies; the reserve policies or lack there of
would be included in that. Woodruff noted the Equipment Replacement Fund is
projected to be slightly over $26,000 at the end of 2014. Therefore, either spending is too
high or transfers in are too low. He did not think this is an issue for 2010.
➢ Councilmember Woodruff asked Staff to review the 2010 beginning balances to ensure
they are correct based on 2009 projected expenditures. For example, the Local Street
Reconstruction Fund beginning balance should be increased because Smithtown Lane
roadway improvements were delayed until 2010. The Sanitary Sewer and Stormwater
Management Funds should be increased for the same reason. Also, the rehabilitation of
List Stations 15 and 17 had been planned for 2009 but has been delayed until 2010 but
the beginning balance has not been adjusted accordingly.
The following clarifications, comments and suggestions were made with regard to local street
reconstruction.
➢ Councihnember Turgeon thought the $176,741 estimate for the City's portion of the
Vine Hill Road mill and overlay was way too low; maybe $1 - $2 million too low.
Director Brown stated he thought this estimate was good.
➢ Councilmember Woodruff stated the expenditures and uses for this category are
projected to be close to $6 million for the five year period. The projected ending fund
balance at the end of 2013 is negative. He suggested Council have a discussion about
how to fund roadway improvements in the not to distant future. He stated one option is to
issue street bonds for the improvements. He explained if the City borrowed $6 million it
would cost approximately $600,000 per year to fund the bonds over 20 years. The CIP
indicates the City could borrow the funds without increasing the cash outlay identified in
the 5 -year CIP. Director Burton stated Council has identified the goal of determining
how to finance roadway improvements as one of its highest priorities for 2010. She and
Administrator Heck have discussed doing a request for proposal with financial advisers
to help with the development of a bonding plan. Woodruff requested Staff come
prepared to discuss this with Council during a January 2010 Council work session. He
stated if bonding was the selected approach to paying for the improvements he thought it
prudent to issue bonds while the interest rates are low.
CITY OF S OREW OD WORK SESSION MEE'rING MlNurES
November 9,2009
Page 3 of 6
The following clarifications, comments and suggestions were made with regard to the municipal water
system.
➢ Director Burton explained the CIP contemplates the extension of water main where
feasible as part of roadway reconstruction projects throughout the five -year period. The
utility rate study indicated the Water Fund could upfront the cost of the extensions until
such time the residents connected to City water or a special assessment process is put in
place.
➢ Councilmember Turgeon stated she attended in the public information meeting about
Nelsine Drive improvements. Three of the property owners were in support of installing
water main; six were happy with their well water. She suggested Council have a future
philosophical discussion about how the City could encourage property owners to hook
up to existing City water, and to review the City's current water policy to determine if
it's still appropriate. She commented the water brochure provided factual information but
was not very enticing. She stated she thought if Nelsine Drive has to be reconstructed (if
reclaiming is not an option) then Council needs to support the installation of water main.
Mayor Lizee stated the water policy needs to be changed to reflect that direction.
➢ Mayor Lizee stated Council needs to discuss whether or not it supports stubbing each
parcel of land as part of water main installation.
➢ Director Burton stated there are economies of scale of installing water main when a
roadway is torn up for reconstruction. She encouraged Council to consider having the
City upfront the cost of water main installation as part of the 2010 roadway improvement
projects. Councilmember Turgeon stated reclaiming Nelsine Drive appears to be an
option; therefore the roadway will not be open to install water main. Burton asked
Council which, if any, of the roadways identified for water main installation it wanted to
remove from the CIP.
➢ Councilmember Woodruff agreed there should be a specific work session to discuss the
City's water policy. He stated Director Burton had previously indicated the CIP was a
worst case scenario; that is, every roadway is reconstructed and water main is installed
when it doesn't exit. He indicated he was comfortable with the CIP for roadway
improvements for purposes of this evening's discussion. Councilmember Zerby stated he
was fine with leaving the water main installation projects in the CIP for now.
➢ Director Burton clarified only transfers in are identified in revenues and other fund
sources in the CIP. She also clarified the $5,000 amount for expenditures reflected in
General Fund sources and uses is for possible maintenance of the City -owned house.
➢ Councilmember Woodruff stated because the proposed new rate structure is revenue
neutral it can be implemented without impacting the budget.
The following clarifications, comments and suggestions were made with regard to parks.
➢ Councilmember Turgeon stated she had received two emails earlier in the day about the
Parks CIP. She explained based on what she recollected reading in minutes from Park
Commission meetings, the City of Chanhassen thought Cathcart Park did not need any
improvements and the Park Commission had agreed that this Park would only be
maintained. Yet, the CIP reflects $83,000 in projects for this Park. There is $50,000
included for a refrigerated rink and warming house rehabilitation in Badger Park; based
on a recent discussion refrigerated rinks are much more expensive. There is $30,000 for
a picnic shelter in Silverwood Park, yet there is a Skate Park shelter for $16,000. She
thought the Parks CIP made no sense. She requested the Park Commission pass a motion
CITY OF SHOREWOOD WORK SESSION MEETING MINUTES
November 9, 2009
Page 4 € f 6
during their November 10, 2009, meeting stating what projects it would like included in
the Parks CIP,
Administrator Heck explained that he and I risti Anderson, the Park Coordinator, had
discussed the Parks CIP and provided the information. He then explained Chanhassen
was not interested in making improvements to Cathcart Park, but it would be willing to
continue mowing the grass and maintaining the greenery. He did not think the Park
Commission had made any decision to remove Cathcart Park projects from the CIP. With
regard to the Badger Park refrigerated rink, the intent is to apply for a Youth Sports
(want from Hennepin County for one rink. The $50,000 is for the City's projected capital
outlay for the project with the remainder being funded through grants and contributions
from the Minnetonka Youth Hockey Association. Councilmember Turgeon stated if the
Park Commission wants this project in the CIP she wants the entire cost identified.
Should the City would be fortunate enough to receive a grant then the City would just
spend less.
Councilmember Turgeon stated there is $120,000 in the CIP for the Manor Park shelter
building addition. Based on recent Council discussion there is still some uncertainty
about whether or not that project will come to fruition. She then stated there is nothing
budgeted for maintenance of the Manor Pond, but she thought there should be if the
shelter project is going to be included. Administrator Heck explained the Park
Commission is going to discuss what it believes the shelter should be used for. The main
reason for the addition is to support additional programming in this Park. Serving as a
warming house is a secondary use.
➢ Councilmember Turgeon requested the Park Commission prepare a more realistic Parks
CIP with solid numbers. She also requested the $12,000 for Cathcart Park bleachers be
removed from the CIP based on the City's past experience with bleachers in Badger
Park. She recommended the long -term maintenance costs associated with some of the
potential projects be factored into the operating budget for the parks.
➢ Councilmember Woodruff stated the Park Commission should be given the opportunity
to weigh in on the Parks CIP. The Chair of the Commission had informed him that the
Commission was not privy to this CIP. Therefore, he thought the Parks CIP should be
tabled until that happens. He commented that Councilmember Bailey had asked him to
fill in for him as the Council representative at the November 10`' Park Commission
meeting.
The following clarifications, comments and suggestions were made with regard to public facilities.
➢ Mayor Lizee stated the public safety facilities and the Southshore Community Center
need to be added to the list of public facilities that will require maintenance. She noted
the city administrators and city manager of the public safety joint powers organizations
member cities have been asked to draft a long -term care and maintenance plan and
funding approach for the public safety facilities. Director Burton stated a line item would
be added to the CIP for those purposes with an amount to be determined.
The following clarifications, comments and suggestions were made with regard to sanitary sewer.
➢ Councilmember Woodruff questioned what assurance there is that the rehabilitation of
Lift Stations 15 and 17 will actually occur in 2010. Director Brown explained he
intentionally delayed those two projects in 2009. Traditionally lift station rehabilitation
projects have been awarded to the lowest bidder. By doing that the City ends up with a
variety of control panels in its lift stations. His plan is to remove the control panel
portion of the rehabilitation projects out of the low bid process. Staff will then work with
CITY OF SHOREWOOD WORK SESSION MEETING MINUTES
November 9, 2009
Page 5 of 6
the City's existing control panel vendor on a design /build contract in order to get
consistent control panels in the lift stations. The projects will move forward once the
control panels can be standardized.
➢
Councilmember Woodruff questioned the $10,000 for a video camera. Director Brown
explained that recently Engineer Landini was forced to hang upside down into a confined
space to try and determine what the issue was with one of the storm sewers. The push-
rod camera can be put down in the small confined spaces to observe how things are
working rather then having a member of the crew go into a confined space to try and
determine that.
➢ Councilmember Woodruff questioned the $120,000 spread out over three years for
Radio /ISP communications for lift stations. Director Brown explained Public Works
needs more effective communications for the City's wells and lift stations. For the
islands, the City Public Works personnel respond to a general alarm warning. They have
to wait until they get to the lift station to determine what is wrong and often have to go
back to Public Works to get what's needed to correct the problem. The estimate is based
on information he received in 2008 for installing a radio system in each of the lift
stations. Councilmember Zerby thought there were newer and cheaper monitoring
options available. Brown noted a significant potion of the cost is for the interface to the
control panels.
➢ Director Burton stated she would delete the revenues and other fund sources amounts in
2010 and 2011 in the sources and uses of funds for sanitary sewer as they were included
inadvertently. She noted that the $1 million dollar transfer out of the Sanitary Sewer
Fund to establish the infrastructure fund needs to be added. She explained there are no
sanitary sewer rate increases included in the 2010 enterprise budget for a few years out.
The following clarifications, comments and suggestions were made with regard to stormwater
management.
➢ Director Burton noted the Stormwater Management CIP includes stormwater
management system improvements for each of the roadways identified for reconstruction
during 2010 — 2014. She stated the Stormwater Management budget contemplates the use
of $300,000 in loans from the proposed infrastructure fund.
➢ Councilmember Woodruff requested a $90,000 line item be added in 2010 for the
maintenance of Manor Pond as a place holder, noting he was not saying he would
support dredging the Pond in 2010. Councihnember Turgeon stated Council has not
decided if that should come out of the Stormwater Management Fund or the Parks Fund,
noting it can be split out later. She expressed she had no problem with having a place
holder for it. Mayor Lizee stated she has a real issue with spending $90,000 for what's
basically an aesthetic reason. Liz6e wanted a little more information on the classification
of the Pond and the quality of the silt before this project is considered. Councilmember
Zerby stated he would support having a place holder in the CIP.
➢ Director Brown explained the $90,000 estimate is based on some historical evidence
from other communities. The actual cost is dependent on whether or not the silt is
contaminated. Engineer Landini explained Manor Park is listed in the national wetlands
inventory map as a wetland. An old aerial photo indicates a very different wetland then
what is there today; it was a plant based wetland that was dredged out between 1937 and
1957. The Minnehaha Creek Watershed District (MCWD) has indicated it would treat
the pond as a stormwater basin; there would be no net loss if the pond was dredged.
➢
Councilmember Turgeon stated it's her understanding that the MCWD doesn't require a
stormwater pond to be maintained unless there has been a loss of more then 50 percent of
the pond.
CITY OF SHOREWOOD WORK SESSION MEETING MINUTES
November 9, 200
Page 6 of 6
The following clarifications, comments and suggestions were nuudc with regard to technology/office
� Director Burton stated o new line item was added for the purchase of five laptop
computers iu20l0 for the Counui|ooennbory.
Counoilzaoonher Woodruff expressed reluctance 0u adding that line it*nn for three
reasons. First, he was not sure how lie would be able to adequately prepare for council
meetings with having electronic copies of meeting packet information only. Second, be
was not sure what the cost benefit of doing on vvoo)d be. And last, be thought the
$|0 amount was way too high; be thought uxtbouks could he purchased for u lot less.
De thought the line dezu should be deleted.
Counoi\noonnherTurgeoo recommended the item be deleted. She stated she also thought
it would be more difficult to prepare for meetings without having u hard copy of the
materials.
Director Burton stated there would be learning curve associated with having electronic
copies of meeting materials only. She agreed the cost could be less then $10,000.
Coonui|nuennbecZerby thought the cost be reduced by 50 percent. Be explained he has
been experimenting with using electronic materials for meetings. Based on his
experience he thought having phu(od nouleriu|s for nouc1iu&a is easier to use, but having
access to past meeting minutes and information can ho very valuable.
�+ Couooi|rnonubcr Woodruff suggested one Coonoi|nn000bor who is not technically savvy
serve ana test person for using electronic materials only.
Mayor Liz& recornmended the line item be reduced to $5,000 and be budgeted for 2012
or beyond.
There was Council consensus to schedule uwork session for November |6 to discuss the Enterprise
Budgets. Mayor Liz6e stated the objective is to complete the discussion during that work session.
3. ADJOURN
Zerby moved, Woodruff seconded, Adjourning the City Council Work Session Meeting of
November 9, 2009, at 6:50 P.M. Motion passed 4/0.
RESPECTFULLY SUBMITTED,
Christine Freeman, Recorder
Christine Liz6e, Mayor