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08-23-10 CC Reg MinCITY OF SHOREWOOD CITY COUNCIL REGULAR MEETING MONDAY, AUGUST 23, 2010 MINUTES 1. CONVENE CITY COUNCIL REGULAR MEETING 5755 COUNTRY CLUB ROAD COUNCIL CHAMBERS 7:00 P.M. Mayor LizBe called the meeting to order at 7:01 P.M. A. Roll Call Present. Mayor LizCe; Councilmembers Bailey, Turgeon, Woodruff and Zerby; Attorney Tietjen; City Administrator Heck; Planning Director Nielsen; Director of Public Works Brown; and Engineer Landini Absent: None B. Review Agenda Administrator Heck asked that Item 10.D on the agenda be moved to the September 13, 2010, meeting agenda. Turgeon moved, Zerby seconded, approving the agenda as amended. Motion passed 5/0. 2. APPROVAL OF MINUTES A. City Council Work Session Minutes, August 9, 2010 Woodruff moved, Zerby seconded, Approving the City Council Work Session Minutes of August 9, 2010, as presented. Motion passed 510. B. City Council Regular Meeting Minutes, August 9, 2010 Bailey moved, Woodruff seconded, Approving the City Council Regular Meeting Minutes of August 9, 2010, as amended in Item 10.11, Page 3, Paragraph 1, Sentence 3 change "Administrator Heck" to "Deputy Clerk Panchyshyn ". Motion passed 5/0. 3. CONSENT AGENDA Mayor Liz& reviewed the items on the Consent Agenda. Turgeon moved, Woodruff seconded, Approving the Motions Contained on the Consent Agenda and Adopting the Resolutions Therein. A. Approval of the Verified Claims List B. Authorizing Submittal of the Three Rivers Park District Regional Trail System 2010 — 2011 Winter Use Permit Motion passed 510. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES August 23, 2010 Page 2 of 10 4. MATTERS FROM THE FLOOR There were no matters from the floor presented this evening. 5. PUBLIC HEARING None. 6. REPORTS AND PRESENTATIONS None. 7. PARKS Commissioner Edmonson reported on matters considered and actions taken at the August 17, 2010, Park Commission meeting (as detailed in the minutes of that meeting). Councilmember Turgeon clarified the grant proposal for the trail connection is for the portion located on the east side of County Road 19. Commissioner Edmonson explained the portion of the connection that is located in the City is approximately 400 feet long. He noted the trail connection project is scheduled in the 2011 Parks Capital Improvement Program (CIP). Councilmember Turgeon stated Commissioner Edmonson noted the Park Commission has adjusted the Parks CIP so it does not enter into a deficit state and that it had been forwarded to the Council for consideration. Councilmember Turgeon clarified that Council has not received a copy of the CIP. Administrator Heck explained that he has not had an opportunity to discuss that revised CIP with the Park Coordinator yet. After that happens, it will be provided to Council. In response to a comment from Councilmember Turgeon, Administrator Heck explained the CIP allocates funds to improve landscaping in parks. The funds are not for the removal and/or replacement of diseased trees. The cost for removing and replacing the diseased trees in the parks and boulevards has not been budgeted for. Commissioner Edmonson stated he will explain that to the Park Commission during the next Park Commission meeting. Mayor Liz& stated she was pleased that the Commission was pursuing a partnership with the City of Tonka Bay for the trail connection. 8. PLANNING Commissioner Hutchins reported on matters considered and actions taken at the August 17, 2010, Planning Commission meeting (as detailed in the minutes of that meeting). The discussion focused on debriefing of the western suburban developments tour the Commission took on August 3, 2010. Director Nielsen explained that if a developer were allowed to increase the allowable height for a structure beyond what is currently allowed it would have to be earned by doing something special such as landscaping design. The Planning Commission will discuss this when it discusses a mixed use ordinance during its September 2010 meetings. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES August 23, 2010 Page 3 of 10 In response to a series of comments by Councilmember Zerby, Director Nielsen explained a variance would be an inappropriate way to address building height because any claim of hardship would have to be economic and that does not qualify for a variance. The mixed use ordinance would be a component of the City's planned unit development (PUD) ordinance. The something special would be identified in the area plan for the Smithtown Crossing area and would be included in the City's Comprehensive Plan. If a developer submitted a mixed use project now it would be handled under the PUD Ordinance. The PUD Ordinance is currently not specific enough to address the height issue. 9. ENGINEERING/PUBLIC WORKS There was nothing additional to report. 10. GENERAL/NEW BUSINESS A. South Lake Minnetonka Police Department 2011 Operating Budget Mayor Liz6e noted that South Lake Minnetonka Police Department (SLMPD) Chief Bryan Litsey, SLMPD Lieutenant Dave Pierson, SLMPD Office Administrator Nancy Swanson, and SLMPD Coordinating Committee Chair Bill LaBelle were in the audience. Mayor Liz& explained the SLMPD Coordinating Committee started with the SLMPD 2011 budget process in June and it has discussed the proposed 2011 SLMPD Operating Budget in depth. Council's August 9"' work session agenda allowed for a 45 minute discussion between Council and Chief Litsey about the proposed budget. It also allowed Councilmembers an opportunity to ask any questions about the budget. This evening Council is being asked to approve the proposed budget that was endorsed by the SLMPD Coordinating Committee. The proposed budget reflects an increase of 4.8 percent over the adopted 2010 SLMPD Operating Budget. The SLMPD joint powers agreement requires unanimous approval of all four member cities. The Cities of Excelsior, Greenwood and Tonka Bay have approved the budget. Shorewood is the last member city to consider the budget. Councilmember Zerby stated he was pleased with the work done by Chief Litsey and his staff and the SLMPD Coordinating Committee in developing the proposed budget. He thanked Chief Litsey for taking the time to discuss the budget with him during a separate meeting. Zerby moved, Liz6e seconded, approving the South Lake Minnetonka Police Department's 2011 . Operating Budget which reflects a 4.8 percent increase over the adopted SLMPD 2010 Operating Budget. Councilmember Bailey stated he thought the proposed budget was a bad news budget for the City. Shorewood property values are going down almost 7 percent this year. Residents' incomes are stagnant or falling. The unemployment rate is high. He thought Shorewood taxpayers are probably expecting a reduction in the City's tax levy, but that can't be delivered. fie noted the target is a zero percent levy increase for 2011. He said the proposed 5 percent increase in the SLMPD 2011 Operating Budget is not acceptable. He stated the City's contribution to the SLMPD has increased approximately 26 percent over the last five years; a much faster rate than any other line item in the City's operating budget. The cost for public safety is approximately one -third of the City's budget. If that cost can't be brought under control there is no chance at controlling the rest of the budget. He noted that he supports having adequate public safety services but it's only one of many essential services the City provides to the community. He thought it important to keep a balance between the services. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES August 23, 2010 Page 4 of 10 Bailey then stated he thought the process for arriving at the SLMPD budget was problematic. His greatest concern is that he does not think the member cities' city administrators /manager are brought into the process as a group to represent the cities. He did not think having the SLMPD Coordinating Committee as the front line in this process is the best way to develop a budget. He explained he serves as the City's representative on the Excelsior Fire District (ETD) Governing Board. The ETD Operating Committee, made up of the member cities' city administratorshuanager, meet as a group with the ETD chief and advise the chief on the ETD budget. He thought that approach is much more productive. The city administrators /manager are the most knowledgeable about their member city budgets and they are the most capable of making decisions and advising the member city councils. Bailey went on to state he was concerned about what he perceived to be a lack of scenario analysis during the SLMPD 2011 budget process. He would have liked scenarios presented that showed, for example, a zero percent increase and a two percent increase and the negative ramifications of doing that. He did not think that reductions in things other than the police force were discussed adequately. Bailey suggested an outside consulting firm be engaged to do a management study of the SLMPD, commenting that is standard practice in many organizations. He thought efficiencies could be achieved if that were done. The study would identify how the SLMPD could do a better job of procuring goods and services that are needed for the police force and a better job of budgeting. He thought this should be done independent of the action Council takes this evening on the SLMPD budget. Bailey noted he will vote against the proposed SLMPD 2011 Operating Budget. Councilmember Woodruff asked, after the fact, that the following remarks of his be recorded verbatim. "First to Mr. Bailey's comment about a management study, I whole heartedly endorse that. I think that in any organization it's periodically healthy to get an independent view of how things are working and to really assess whether we're operating with best practices or not and if we're not what those best practices should be. I'd like to direct staff of Shorewood to go off and engage with the other city administrators to undertake at Least the initiation of such a study. I am willing to in some subsequent action here actually authorize some money to make that happen out of Shorewood's budget." "But, I'd like the record to reflect that I too am highly concerned about the 4.8 percent increase in the police department budget. About two months ago we had a Council meeting, we had a discussion about this budget; at that point, I believe it was a 4.9 percent increase, and I indicated that I couldn't support a 4.9 percent increase, but I would entertain something between two and a half and three percent as a target. Well we're now presented with a 4.8 percent increase." "The Mayor here a little bit ago referenced the fact that Shorewood is considering this budget last out of the four cities. That happened again last year. I think that process needs to change. And Shorewood needs to look at this budget and take some action on it in a more timely fashion. A comment on that. Last year the budget came in at a number that I think some of us on Council didn't like. The algorithm in the JPA says that if we can't unanimously agree, that is all four councils, on a budget, the budget defaults. It defaults to the consumer, excuse me, the CPI or the implicit price deflator, whichever is less. Last year I certainly voted for the police department budget on the basis of allowing it to go to default would have actually raised the budget above what was being requested. This year we have a little different situation. Shorewood's last in this process. Today is the twenty -third of August. We have to have a budget agreed to by the September I". That's a little bit of an artificial deadline, but it's there because cities have to know what the police department budget is in order for them to present their budget to the county on September CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES August 23, 2010 Page 5 of 10 15 So Shorewood's kind of in a box here. Three other cities have approved this. Rightly or wrongly my assumption is leaving it to Shorewood to decide whether we are or aren't going to have a budget other than what it might default to. I'm not confident that four cities can get together over the next ten days and before the fifteenth of September and agree on some other budget. So I feel Shorewood's been put in box in being forced to make a decision that perhaps some of us on Council don't want to make." This concludes Councilmember Woodruff's verbatim remarks. Councilmember Turgeon stated earlier Mayor Lizke commented that the SLMPD Coordinating Committee started the budget process in June. This Council really didn't get any feedback during that time from Shorewood's representative. She commented that each SLMPD member city has one representative on the Committee. But, decisions about the SLMPD budget need to be made by entire bodies. Decisions can be fed through the representative. Turgeon then stated Shorewood has cut its proposed 2011 operating expenses by 2.5 percent to try and maintain a level budget for 2011. The SLMPD expense budget increased about 17 percent from 2006 to 2007 or an average of 4 percent a year, noting that does not account for salary increases. For the City of Shorewood, the proposed 2011 increase will be $45,000. Shorewood will be contributing $1.225 million dollars to police public safety. She clarified she was not saying public safety is not important. The City can't five without it. It does need to stay balanced within the City's budget along with all of the other essential services the City's taxpayers expect the City to provide down to plowing streets. Turgeon went on to state she does not think there is any evidence that crime has increased in accordance with the expense increase amounts. When the City can only increase its base levy by 1.2 percent it's difficult for her to support a 4.8 increase forjust one essential service on the back of the City's taxpayers. There are a lot of taxpayers in the City who are economically challenged. She indicated her decision on the SLMPD budget will be a very tough decision. She clarified she was not saying SLMPD personnel were not doing their jobs; they do a good job. She stated it comes down to what a city can afford to pay. She commented that Shorewood has never received any local government aid from the state; some other cities have. Councilmember Zerby stated he did not support having a "priceline.com" strategy where Council establishes what it's willing to have the City pay for public safety services and then expects the public safety department to meet that price. He noted that the SLMPD has one of the highest crime clearance rates in Hennepin County. He found that amazing. At the same time the SLMPD has the lowest cost per capita for departments in the South Lake area. The SLMPD cost per resident is $155 a year. The per - resident cost for police services in the City of Minnetonka is $168 and $183 in the City of Deephaven. It sounds to him like some of the Councilmembers think there is something wrong and that a consultant should be hired to find out what the something is. He doesn't think of public safety services the same as he thinks of services such as plowing snow or mowing lawns. He wasn't sure you can just say you want to pay a lower price for the police services. Zerby then stated there has been a great deal of process regarding the proposed SLMPD 2011 Operating Budget. All meetings were open to the public and Councilmembers. He expressed he was stunned that during the August 9 work session discussion about the SLMPD budget, no other Councilmembers in attendance other than Mayor Liz& and him, had any questions or comments for Chief Litsey about the budget. It was an opportunity to express any concerns on record and to have an open dialogue with Litsey. CITY OF SHOREWOOD REGULAR COL ?NCIL MEETING MINUTES August 23, 2010 Page 6 of 10 Zerby explained the largest expense in the SLMPD budget is personnel related. Most SLMPD personnel belong to the labor union and salary and benefit increases are determined through a negotiation process. If Councilmembers have an issue with wage and benefit costs that should be addressed prior to the negotiation process. He then explained that from his vantage point the SLMPD JPA is counter to a democratic process. To allow three people out of twenty to derail something is incredibly undemocratic in his opinion. He thought what was occurring is grandstanding. Mayor Liz€e stated the SLMPD budget process is a public process. It's a responsibility the Councilmembers have to their constituents and the community. The four member cities are part of a joint powers organization. If there are issues with the JPA regarding who serves on the SLMPD Coordinating Committee or how the organization operates, those issues need to be addressed when the JPA is revisited. Tonight is not the time to discuss them. Liz& then stated Councilmember Turgeon serves as the City's alternate on the Coordinating Committee. Turgeon has attended all of the Coordinating Committee meetings about the SLMPD 2011 budget, and she had the opportunity to comment on the SLMPD budget or ask questions about it. The budget has been presented to this Council for discussion. She commented that some of the Councilmembers have been emailing questions about the budget to Chief Litsey and she thought all emails have been responded to. Lizee expressed she was most disconcerted that on August 9"' there was a Council work session which Chief Litsey attended to discuss the SLMPD budget and to entertain any questions Councilmembers may have. She explained the Litsey gave a short PowerPoint presentation during that work session on all of the material that had been disseminated to Councilmembers and the Coordinating Committee members prior to that meeting. After the presentation Councilmembers Turgeon and Woodruff both indicated they had nothing to say about the budget. Councilmember Bailey noted that he was not able to attend the work session because the start time was changed Liz&e stated she thought the proposed budget was responsible and reasonable. The Coordinating Committee has worked closely with Chief Litsey and staff on the budget. She thought public safety services are the most important services the City provides its residents. She thought the City received great value for its share of the cost. She expressed her support for the proposed 2011 SLMPD Operating Budget. Councilmember Turgeon stated she did attend all of meetings,. She commented she attended the City of Greenwood council meeting when that council discussed the SLMPD budget. She also watched a video of the last Coordinating Committee meeting during which the budget was endorsed on a 2/1 vote with one member absent. The Mayor of Greenwood voted against it. Councilmember Turgeon stated the reason she didn't ask any questions during the August 9 work session is because she had already been provided the information she had requested from Chief Litsey prior to that meeting. Councilmember Woodruff again asked that his following remarks be recorded verbatim. "If this Council disapproves this budget the increase will be 1.68 percent. That's rounded to the nearest two hundredths. I feel that's an inadequate number to support the police department. I also feel again 4.8 is excessive. So having said that I would like to call the motion." Mayor Liz6e asked for a roll call vote be done alphabetically. Administrator Heck conducted the roll call vote and the results are as follows CITY OF SBOREWOOD REGULAR COUNCIL MEETING MINUTES August 23, 2010 Page 7 of 10 Councilmember Bailey no, Councilmember Turgeon no, Councilmember Woodruff yes, Councilmember Zerby yes, and Mayor Liz6e yes. Motion passed 312. B. City of Shorewood Proposed 2011 General Fund Operating Budget and Levy Administrator Heck stated the 2011 Proposed General Fund Operating Budget for consideration this evening is included in the meeting packet. This budget is the result of numerous Council and Staff work sessions. Per Council's direction, the proposed 2011 base levy reflects a no increase over the adopted 2010 and 2009 base levies. Heck explained 2011 total revenues are projected to be approximately $5.179 million. That reflects a decrease of approximately $81,000 when compared to the adopted 2010 revenue budget, and it includes an approximate $13,000 decrease in the special levy. Projected 2011 expenditures are approximately $138,000 less than the adopted 2010 budgeted expenses. The majority of the decrease is the result of reallocating labor from general operations, in particular the Public Works, to enterprise operations and moving some capital expenditures from the General Fund to the Capital Improvement Funds. Per Council's direction, the budget provides a $40,000 transfer from the Liquor Fund to the General Fund and the use of $160,000 in General Fund reserves. Heck went on to explain this proposed budget reflects an excess of approximately $36,000 in revenue for use. Council could reduce the amount of General Fund reserves used or it could reduce the amount of the base levy. He asked Council to consider funding a program called "Measurable Management" instead. As part of the program, an outside consultant would train staff to evaluate operations and identify ways to improve the delivery of services and to reduce the cost for services. The program also requires the identified opportunities for improvements be implemented and monitored and the results measured. The City of Waconia and several other cities have gone through the program. Waconia changed to a new type of cleaning product and that resulted in an annual savings of over $3,000. The cost is $3,500 per participant. If the City does not realize savings at least equal to the amount the City paid for the program the cost of the program will be refunded. He noted there is an opportunity for the City to collaborate with the other South Lake area cities to identify some joint opportunities that would be beneficial to all of the cities. He recommends Council keep the excess $36,000 in the budget for now so he can further investigate the program. It can be taken out before the final budget is certified to Hennepin County in December 2010. In response to a request from Councilmember Woodruff, Administrator Heck clarified Shorewood's portion of the approved South Lake Minnetonka Police Department (SLMPD) 2011 Operating Budget is $995,750 and its portion of the 2011 bonded debt payment for the police portion of the public safety facility located in Shorewood is $230,066 for a total amount of $1,225,816. Councilmember Bailey complimented Administrator Heck on the budget packet and the budget process; He thought was a significant improvement over previous years. The level of detail provided is greatly appreciated. Councilmember Zerby stated he is pleased with the budget and he reiterated concerns he has expressed in the past about the planned pace for road improvement projects that he believes is too fast. Turgeon moved, Zerby seconded, Adopting RESOLUTION NO. 10 -039 "A Resolution Setting the 2011 Proposed General Fund Budget and Approving the Proposed 2010 Property Tax Levy Collectible in 2011." Motion passed 510. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES August 23, 2010 Page S of 10 C. Set Truth -in- Taxation 2011 Budget Hearing Date Administrator Heck explained the resolution included in the meeting packet for this meeting sets the Truth -in- Taxation hearing date for Monday, December 6, 2010, with a follow -up hearing and budget adoption during the December 13, 2010, Council meeting with both of them starting at 7:00 P.M. Turgeon moved, Woodruff seconded, Adopting RESOLUTION NO. 10 -040 "A Resolution Setting the Truth -In- Taxation Public Hearings on the Proposed 2011 Budgets and the 2011 Property Tax Levy." Motion passed 510. D. Compensation Plan and Policy Manual This item was removed from the agenda at Administrator Heck's request. It will be placed on the September 13, 2010, City Council regular meeting agenda for consideration. 11. STAFF AND COUNCIL REPORTS A. Administrator and Staff Administrator Heck Administrator Heck stated that the park shelter in Silverwood Park is essentially done. There is some final grading that has to be done and the grill has to be reinstalled. The revised Parks Capital Improvement Program (CIP) will be on Council's September 13, 2010, work session along with other CIPs. He met with a resident earlier in the day about a fence situation. He is going to meet with another resident to discuss things related to Silver Lake. He has selected a finalist candidate for the finance director position and he hopes to speak with him on August 24 "'. In response to a question from Councilmember Turgeon, Heck explained he has spoken with the Building Inspector who explained the contractor's form boards will be removed from Silverwood Park. 1. 5620 Star Lane Mayor Liz6e stated during her last coffee with the mayor session a resident spoke to her about the property located at 5620 Star Lane, noting this property has been problematic for some time. There is a house on the property that has not been finished and a certificate of occupation has not been issued for it. Director Nielsen has been asked to look into this. Director Nielsen explained this has been a problem for a long time. The original builder essentially constructed a shell. From the outside it looks like a house but it's an empty shell. There is no insulation, no HVAC, and no plumbing installed. The permit has been renewed twice. The owner does mow the lawn from time to time. The City had gone after the owner for storing things on the property and the items were removed. There is a provision in the City's nuisance ordinance that states if a structure has been destroyed by decay or something else to one -half of its value the City can require that the structure be either fixed or removed. The City's Building Inspector does not think the damage is close to one -half of the value because the value of the structure is quite low. He has spoken to Attorney Tietjeu about approaching this issue from a zoning perspective. The City issued a permit for a single - family dwelling. Mayor Liz6e thanked Director Nielsen for his quick action on this issue. Director Brown stated the 2010 seal coat project is nearing completion. The roadway sweepers have been out doing their job. Yellowstone Trail was paved as of August 23rd. The striping will be done after Eureka Road is paved and that is scheduled to be done on August 24 "'. The first layer of asphalt will be put down on Wild Rose Lane and Meadowview Road on August 24t". CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES August 23, 2010 Page 9 of 10 Mayor Lizde stated she drove on Yellowstone Trail after new asphalt was put down and it was a wonderfully smooth ride. She expressed that sometimes after a roadway has been paved drivers travel faster on it. She suggested the speed buggy be put back near that roadway to remind drivers of the speed limit. She asked if fog lines will be painted on the new surface. Director Brown responded the current plan is to only paint a center line. Lizde asked Brown to assess if the budget would support painting fog lines. The fog lines will make the roadway surface appear narrower. Councilmember Turgeon stated she doesn't object to putting the speed buggy out any where as long as data collected on it is reviewed. Councilmember Woodruff expressed his appreciation to those involved with the seal coating of roadways out on Enchanted and Phelps Islands. He extended the same appreciation from residents on the Islands. He stated he thought the project went very well and he was pleased it was done at the same time that the City of Minnetrista seal coated roadways close to that area and that both cities did their sweeping at the same time. In response to a comment from Councilmember Zerby, Director Brown explained the plan is to overlay the portion of Vine Hill Road located in the City in 2011. Staff will in the near future request Council authorize funds in 2010 to prepare for the 2011 overlay. The goal is to be ready to overlay the road as early as possible in 2011. Councilmember Bailey asked Administrator heck when Council will be discussing roadway improvement funding again. Administrator Heck explained that will be the first project for the new finance director. Heck noted that finalist candidate for that position has experience with long -range financial planning. Bailey asked if that discussion will occur in October. Heck responded it would be a short timeline. Councilmember Woodruff stated there is a Lake Minnetonka Conservation District (LMCD) Aquatic Invasive Species Task Force meeting scheduled for August 27 A number of agencies are jointly putting together two public information meetings about zebra mussels. One will be held on August 31" at the Southshore Community Center. The other will be held on September I' at the Gillespie Center in Mound. Mayor Lizde thanked Twila Grout for keeping volunteers informed about the project to install a boundless playground in Manor Park. The project was delayed due to heavy rains a few days before it was scheduled to be installed. The new installation date is September 18 Lizde then thanked the residents of Woodside Road. They coordinated a historical walking tour of Woodside Road on August 22n Tom Skramstad, a former planning commission and a former chair of the LMCD and a lifetime resident of Woodside Road, and Bruce Kobs, who is with the Minnetonka Transportation Museum, prepared a wonderful video/PowerPoint slide show. Approximately 75 people attended the event. There were some house tours of a 100 - years -old home. She asked Mr. Skramstad and Mr. Kobs if they would like to display the photographs and other images at City Hall. They indicated they need to work with the Excelsior Historical Society to get permission from those individuals who shared their photographs. She thanked the Woodside Road residents for the invitation. B. Mayor and City Council CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES August 23, 2010 Page 10 of 10 12. ADJOURN Turgeon moved, Woodruff seconded, Adjourning the City Council Regular Meeting of August 23, 2010, at 8:14 P.M. Motion passed 510. RESPECTFULLY SUBMITTED Christine Freeman, Recorder hristine Liz6e, Mayor