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04-25-11 CC Reg Mtg MinCITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD CITY COUNCIL REGULAR MEETING COUNCIL CHAMBERS MONDAY, APRIL 25, 2011 7:00 P.M. MINUTES 1. CONVENE CITY COUNCIL REGULAR MEETING Mayor Lizde called the meeting to order at 7:00 P.M. A. Roll Call Present. Mayor Lizde; Councilmembers Hotvet, Siakel, Woodruff and Zerby; Attorney Keane: City Administrator Heck; Finance Director DeJong; Planning Director Nielsen; Director of Public Works Brown; and Engineer Landini Absent: None. B. Review Agenda Zerby moved, Siakel seconded, approving the agenda as presented. Motion passed 5/0. 2. APPROVAL OF MINUTES A. City Council Work Session Minutes, March 28, 2011 Zerby moved, Hotvet seconded, Approving the City Council Work Session Minutes of March 28, 2011, as presented. Motion passed 5/0. B. City Council Regular Meeting Minutes, March 28, 2011 Woodruff moved, Siakel seconded, Approving the City Council Regular Meeting Minutes of March 28, 2011, as presented. Motion passed 510. C. City Council Regular Meeting Minutes, April 11, 2011 Woodruff moved, Zerby seconded, Approving the City Council Regular Meeting Minutes of April 11, 2011, as amended in Item 10.11, Page 6, Paragraph 4, Sentence 3 change "He stated he will not recuse himself this year." to "He stated he will not recuse himself this year because the funds the City will contribute in 2011 will go toward the treatment Phelps Bay as well Gideon Bay. ". Motion passed 510. 3. CONSENT AGENDA Mayor Lizde reviewed the items on the Consent Agenda. Woodruff moved, Siakel 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 April 25, 2011 Page 2 of 13 B. Shorewood Yacht Club Multiple Dock Facility License C. Adopting RESOLUTION NO. 11 -012 "A Resolution Approving a Temporary 3.2 Percent `On -Sale' Malt Liquor License issued to the Excelsior Firefighters Relief Association." D. Authorizing Advertisement for Bids for Vine Hill Road Mill & Overlay, City Project 1.1 -02 E. Bill Erickson Addition — Request for Extension to File Final Plat F. Adopting RESOLUTION NO. 11 -013 "A Resolution Approving Intoxicating Liquor License On -Sale Intoxicating Liquor and Special Sunday Sales, for the Minnetonka Country Club'; RESOLUTION NO. 11 -014 "A Resolution Approving Intoxicating Liquor License On -Sale Intoxicating Liquor and Special Sunday Sales, for American Legion Post 4259 "; RESOLUTION NO. 11 -015 "A Resolution Approving a 3.2 Percent `Off -Sale' Malt Liquor License, for Shorewood 2001 LLC, dba Cub Foods"; RESOLUTION NO. 11 -016 "A Resolution Approving an Off -Sale Intoxicating Liquor License, for Park Square Subway, Inc., dba Shorewood Liquor'; and, RESOLUTION NO. 11 -017 "A Resolution Approving an Off -Sale Intoxicating Liquor License, for The Cellars Wines & Spirits of Shorewood, Inc.' G. Public Works Capital Improvement Equipment Purchases — Vehicle Lift and Tractor Backhoe H. Authorization to Apply for an Organics Collection Grant (This was moved to Item 10.A under General /New Business.) Motion passed 5/0. 4. MATTERS FROM THE FLOOR There were no matters from the floor presented this evening. 5. PUBLIC HEARING None. 6. REPORTS AND PRESENTATIONS A. Park and Planning Commissioner Recognitions On behalf of the Council and the residents of Shorewood, Mayor Liz& thanked Jeremy Norman for his five years of service as a Park Commissioner and presented him with a plaque of appreciation and recognition. She noted Mr. Norman was Chair of the Commission from October 2008 through February 2011. She also noted that Mr. Norman continues to be committed to working on different projects for the City. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES April 25, 2011 Page 3 of 13 On behalf of the Council and the residents of Shorewood, Mayor Liz&c thanked William Ruoff for his four years of service as a Planning Commissioner and presented him with a plaque of appreciation and recognition. Missy Vilett was not present at the meeting to receive a plaque of appreciation and recognition for her three years of service as a Planning Commissioner. On behalf of the Council and the residents of Shorewood, Mayor Liz& thanked Planning Commissioner Vilett for her service. Suzanne Gaidos was not present at the meeting to receive a plaque of appreciation and recognition for her almost one year of service as a Park Commissioner. On behalf of the Council and the residents of Shorewood, Mayor Liz& thanked former Park Commissioner Suzanne Gaidos for her service. B. Lake Minnetonka Communications Commission Report by Representative Ken Hendrickson Mayor Liz6e stated Ken Hendrickson, the City's Representative on the Lake Minnetonka Communications Commission (LMCC), is present to give an update on LMCC activities. Mr. Hendrickson stated the LMCC has started its 2012 budget process, noting he was elected chair of the Budget Committee. The budget will be presented to Council in August. He noted the LMCC received a check for $128,260 from Mediacom following an audit. Mr. Hendrickson stated the meeting packet contains copies of a cover letter from Henry Pryor giving an overview of the fiber to the premise (FTTP) residential survey the LMCC commissioned, the survey results for the Group I including the Cities of Deephaven, Greenwood, Shorewood and Woodland, and a summary of the results. He then stated he was going to tell what he thought the LMCC learned from the survey and what the next steps are. The highlights of the results for Group 1 are as follows ➢ The survey cost about $20,000, it was paid for by the LMCC and it was budgeted for in 2011. ➢ The survey results are consistent across the four survey groups as well as the survey results for the City of Mound. ➢ The survey results were average or slightly more positive when compared to similar surveys conducted for communities that eventually installed FTTP. ➢ The LMCC contracted with CCG Consulting LLC (CCG) to conduct the survey. The results of the survey and the results of the effort are very consistent; based on history that the survey is a good indicator of success. ➢ Survey results indicate there is support for a new company (for purposes of this discussion called NewCo) to provide government owned competitive services for FTTP and they are the highest CCG has ever seen. It doesn't mean it was fantastically high. ➢ Sixty -nine percent of the respondents said the LMCC and local governments should provide a locally- owned, competitive choice of television, internet, and telephone services to homes, businesses, schools, governmental businesses and so forth; 11 percent said they should not. ➢ Forty -nine percent of the respondents that said they would buy internet service from NewCo if the price is slightly less than what they are currently paying for the service, 30 percent said they would if the price is the same, and 11 percent said they would if the price is slightly more (assuming significantly faster upload and download speeds and better customer service). ➢ Forty -nine percent of the respondents that said they would buy cable television service from NewCo if the price is slightly Less than what they are currently paying for the service, 30 percent CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES April 25, 2011 Page 4 of 13 said they would if the price is the same, and 6 percent said they would if the price is slightly more (assuming better picture quality and customer service). ➢ Fifty -seven percent of the respondents said they would buy telephone service from NewCo if the price is slightly less than what they are currently paying for the service, 31 percent said they would if the price is the same, and 2 percent said they would if the price is slightly more (assuming the service would include many features in the basic price). ➢ A successful business plan will require a discount to the cost of what respondents are currently paying services. ➢ The results indicate the respondents want competition. ➢ Fifty percent of the respondents said they were extremely or somewhat satisfied with their internet service provider, 31 percent were neutral, and 19 percent were somewhat or extremely dissatisfied. ➢ Fifty-three percent of the respondents said they were extremely or somewhat satisfied with the speed of their internet service, 33 percent were neutral, and 14 percent were somewhat or extremely dissatisfied. ➢ Fifty -one percent of the respondents said they were extremely or somewhat satisfied with the reliability of their internet service, 31 percent were neutral, and 18 percent were somewhat or extremely dissatisfied. ➢ Thirty-seven percent of the respondents said they were extremely or somewhat satisfied with the value they receive from their internet service when compared to the price they pay, 37 percent were neutral, and 26 percent were somewhat or extremely dissatisfied. Mr. Hendrickson concluded by stating the survey results indicate demand is there and from his vantage point the technology is there. 'The question to answer is whether or not the LMCC can come up with a successful business plan. The LMCC and the FTTP Committee need to explore the financing options for the future and develop a business plan. He then stated he could not say that a successful business plan can be developed. He expressed he does believe the effort to try to develop one will be diligent. Councilmember Woodruff stated he agreed with Mr. Hendrickson's comments. He explained that 1,774 surveys were conducted throughout the entire LMCC community. He noted the survey asked for feedback about service providers in addition to Mediacom. Councilmember Siakel stated the topic of FTTP is going to require much more in -depth discussions. She asked if the same questions were asked during all of the surveys conducted to which Mr. Hendrickson responded yes. Councilmember Woodruff commented that at the beginning of each survey the surveyor read an opening preamble about the LMCC and the FTTP effort. He noted there is a spreadsheet containing every respondents answer to every question. Councilmember Siakel stated the way she interprets the survey results is that in general people are satisfied with the services they receive and with their service providers. Mr. Hendrickson stated that about 50 percent of the respondents are pretty satisfied and it is his impression that respondents have not had trouble with their service so it is not high on their list. Some of the respondents have had problems based on how they answered the survey questions. He then stated that respondents who don't have sufficient band width for downloading things understand that if they have FTTP that problem will go away. Councilmember Siakel then stated that from her perspective the survey lacked fair balance. The questions were primarily about respondents existing services. Most responses fell in the middle. She commented CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES April 25, 2011 Page 5 of 13 that if someone asked her if she would like FTTP she would respond she would if it would faster, better, cost less and so forth. She stated there is a lot more behind this than was asked. Mr. Hendrickson explained an attempt was made to synchronize the LMCC's survey with other surveys CCG has conducted so the LMCC could learn from the communities that had conducted surveys and installed FTTP systems. CCG provided some guidance in selecting survey questions. He stated how FTTP would be paid for is up in the air in part because of the current economic climate. Councilmember Siakel stated the LMCC can't levy anything; it has to come to the cities for funding. Mr. Hendrickson stated a joint powers, non -profit organization would have to be set up, noting the LMCC would likely give anew organization some guidance. Mr. Hendrickson stated the LMCC has established there is a need for FTTP, the responders want competition, 50 percent of the responders are neutral or dissatisfied with their current services and service providers they have, and that there is good correlation between surveys and future performance. In response to a question from Councilmember Zerby, Mr. Hendrickson stated the LMCC's franchise with Mediacom is coming up for renewal. Mr. Hendrickson then stated that having an alternative to Mediacom puts the LMCC in a somewhat better negotiating position. This process keeps LMCC abreast of technologies, it puts the LMCC in a better negotiating position, and it could well lead to FTTP being a solution for the LMCC member cities. Mayor Liz& stated she will have more questions when there is more detailed discussion about FTTP. She asked if FTTP is a service the residents want local government to provide. Mr. Hendrickson stated the survey results indicated the responders don't object to local government providing it and if local government is the only organization that is willing to provide it people will sign up for it. Mr. Hendrickson stated the LMCC did survey some other companies that provide the same services as Mediacom. The results were not encouraging. He then stated it's his opinion that there appears to be somewhat of an unwritten law in the industry that if a company's franchise comes up for renewal no other company is going to bid on it. The City of Monticello created a company that successfully competed with the incumbent. It was a long, hard battle with the end result being better services for subscribers. In response to a comment from Councilmember Siakel, Mr. Hendrickson stated he did not think that Monticello received troubled asset relief program (TARP) funds. Mr. Hendrickson stated there are communities that received funding but they are more rural. Councilmember Woodruff stated Monticello in very many ways did something similar to what the LMCC is considering doing. Monticello issued nonrecourse revenue bonds. No federal funds, no state funds, no county money was used to create the system. A small amount of city funding was used to jumpstart the project. The biggest problem Monticello has is it can't keep up with demand. Mr. Hendrickson stated customers are happy with the new system, and he noted the entire system fits in a room about one -half the size of the Council Chambers. Administrator Heck asked what the LMCC will do next with the results of the survey. Mr. Hendrickson responded the LMCC is kicking off a funding exercise, which will help identify the various funding possibilities for FTTP and develop a business plan for each of the options. Mayor Liz& stated she looks forward to receiving more information. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES April 25, 2011 Page 6 of 13 PARKS Commissioner Swaggert reported on matters considered and actions taken at the April 12, 2011, Park Commission meeting (as detailed in the minutes of that meeting). Mayor Liz6e noted there is a joint Council, Park Commission and Planning Commission meeting scheduled for Mary 3, 2011, at 6:00 P.M. 8. PLANNING No report was given because there had not been a Planning Commission meeting since the last City Council regular meeting. The next meeting is scheduled for May 3, 2011. It will be held after the joint Council, Park Commission and Planning Commission meeting and it will start at 8:00 P.M. 9. ENGINEERING/PUBLIC WORKS A. Accepting Plans and Specification and Authorizing Advertisement for Bids for 2011 Seal Coating of Streets Engineer Landini explained that each year the City budgets for the bituminous seal coating of some of the City's roadways. The meeting packet contains a list of the 39 roadways proposed to be seal coated and a map depicting the location of the roadways. The 2011 Capital Improvement Program budget allocates $223,000 for the seal coating effort. If Council authorizes the project, the bids for the project will be opened on May 18"` at 10:00 A.M. He noted that historically the roadways have been seal coated during the first two weeks in August, but the timeline depends on when Public Works can have the roadways patched. Councilmember Zerby asked if there will again be a conflict between the seal coating effort and the Tour de Tonka event. Director Brown stated the event coordinators typically ask the City to hold off on seal coating, but that is not possible if the City wants to stay current with its street maintenance program. Brown noted the City has worked effectively with the coordinators in the past. The contractor has been required to sweep the streets after they have been seal coated. If that's not possible Public Works staff will do the necessary sweeping and assess the roadways to try and minimize accidents. Brown then stated unless Council tells Staff to do something different, Staff will not delay the seal coating effort. Mayor Liz& stated it appears as if the section of Minnetonka Boulevard between the Cities of Deephaven and Greenwood proposed for seal coating would be the only project area that'll be part of the event route. Councilmember Zerby asked that Staff error on the side of over communicating to residents about the project areas. Woodruff moved, Zerby seconded, Adopting RESOLUTION NO. 11 -018 "A Resolution Approving Specifications and Estimate and Authorizing Advertisements for Bide for Bituminous Seal Coat Project 2011 ". Motion passed 510. 10. GENERAL/NEW BUSINESS A. Authorization to Apply for an Organics Collection Grant This was removed from the consent agenda at Councilmember Woodruff s request CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES April 25, 2011 Page 7 of 13 Councilmember Woodruff explained that one of the reasons he asked for this item to be removed from the consent agenda is that he had never before seen the information included in the meeting packet about an organics waste collection grant application until he received the meeting packet. He stated he thought some of the material included policy type information that needs to be discussed. He expressed disappointment that Council is being forced to take action on this item this evening because the application has to be submitted by April 29, 2011, at 5:00 P.M. He noted the then Council talked about an organics waste collection grant application about 1.5 years ago. He stated he doesn't know how the two programs compare, noting he did not think the 2010 program was very well defined. Woodruff then explained that Staff proposes contracting with Organics Disposal to provide organics waste collection services for a pilot program. The cost per participating household would be $8.00 for household organics waste or $11.00 for a mixture of yard waste and household organics waste. Staff proposes going with the organics household waste only option and he questioned if that is the correct option. He asked how Staff arrived at recommending Organics Disposal. Council has not been provided with any contract to review. He stated on the Hennepin County website he found out that a limited number of cities, he thought eight, have an organics waste collection program. Also, Organics Disposal is one of five organics collection companies listed on that website. He asked Staff why this is being sole sourced and why there has not been any discussion about the other companies. Woodruff went on to explain the pilot program proposal is for up to 500 participants located in the west end of the City. He asked why the proposed pilot area is not the east end of the City or the entire City. He asked what happens when the year -long pilot program ends. Does the City continue with a city -wide organics waster collection program? What would the per participant cost be? Will participation be optional? Will participants be billed directly? Woodruff stated there is a lot of Council policy discussion that has not taken place. He noted he thinks the organics recycling idea is a good one. He stated that from his vantage point it appears as if the City is jumping off a bridge and he's not sure anyone has identified who might have a parachute. Administrator Heck explained Organics Disposal is recommended because it's based out of the City of Chaska; it's close to the recommended pilot area. Staff has spoken with a few other companies and they were not interested in separate organics waste collection. He noted the City currently has single source collection for recycling and Staff believes having single source collection for organics waste would be better for the City's roadways and the residents. He stated he will have to get back to Council on why the west side of the City was chosen, but it may be because it's close to Organics Disposal basic route. Staff does recommend a small concentrated area for the pilot program. He explained one of the objectives of an organics waste collection program is to remove waste from the waste stream that would otherwise go to the waste burner or to the landfill. Staff has to try and estimate how much organics waste is being collected with other refuse and also track how much of that would be removed through the organics waste collection program. Heck stated that if the results of the program confirm that organics waste collection is a beneficial service to offer to the community then Council would need to discuss offering a city -wide program. He explained Staff recommends having participation in a potential city -wide program voluntary, having a single source organics waste collection vendor that the City contracts with, and having participants subscribe to and pay for the program directly with the vendor [like they do for refuse collection]. The City would not have any billing obligations. He commented the City of Plymouth is re- evaluating its refuse and recycling program and it's considering including organics waste collection as a mandatory service. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES April 25,2011 Page 8 of 13 Councilmember Woodruff stated the City has only asked for a bid from Organics Disposal. He noted he does agree with having a single source organics collection vendor. IIe stated the City solicited bids for providing recycling services. He again asked what happens when the pilot program concludes. Administrator Heck explained that a portion of the pilot program participants' cost will be subsidized by the City through grant funds. If the pilot program is successful Council has to decide if it wants to offer the service city wide and it will need to find a single source organics waste collection vendor. In response to a comment from Councilmember Woodruff, Administrator Heck explained this evening Staff is asking for authorization to apply for the grant. If the City is not awarded a grant an organics waste collection program will not move forward at this time. If the City is awarded a grant Staff will work out the contract details with Organics Disposal. In response to another comment from Woodruff, Heck explained the grant application does not commit the City to providing long -term organics waste collection services. Councilmember Woodruff stated if the City is awarded a grant he asked that Council have the opportunity to discuss any proposed contract with a collection services provider for a pilot program. Administrator Heck stated that is how the process would work. Woodruff moved, authorizing Staff to submit a grant application to Hennepin County for its Waste Abatement Incentive Fund Program to help fund a pilot an organics waste collection program subject to not selecting an organics waste collection vendor or approving any contract with a vendor until the City is awarded a grant at this time. Motion died for lack of a second. Councilmember Siakel clarified that the only thing Council is considering this evening is giving staff the authority to submit a grant application. Grant funds would be used to help subsidize a pilot program for organics waste collection. At a future date Council can discuss the specifics of the pilot program. Organics recycling gives Council and Staff an opportunity to re- evaluate its refuse, yard waste and recycling programs. She expressed her support for submitting the grant application and moving forward with a pilot program if the City is awarded a grant Councilmember Zerby stated he supports authorizing submittal of the grant application. He then stated that he believes that the vendor Staff proposes using, Organics Disposal, for the pilot program is one Staff believes would be a good fit for the City. Councilmember Hotvet explained when an application is made for a grant the application includes a broad overview of how the grant funds would be used. Once a grant is awarded a project plan is developed and the details are worked out. She stated she thought the pilot program would be a benefit for the community. Mayor Lizde stated she viewed this as a continuation of the Hennepin County organics recycling grant program the County had in 2010 that Council considered and turned down. She stated this is an opportunity for the City to gain a greater understanding of the benefits of organics waste collection. Zerby moved, Hotvet seconded, authoring Staff to submit a grant application to Hennepin County for its Waste Abatement Incentive Fund Program to help fund a pilot organics waste collection program. Motion passed 510. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES April 25, 2011 Page 9 of 13 11. OLD BUSINESS A. Continuation of Zoning Violation Appeal Applicant: Ron Johnson Location: 5490 Vine Hill Road Mayor LizBe explained Ron Johnson appealed a zoning violation notice he received for property he owns at 5490 Vine Hill Road. During Council's March 28, 2011, meeting Mr. Johnson was provided an opportunity to address the Council on his notice of appeal. Mr. Johnson chose not to come to that meeting. During that meeting Council discussed the violations and what the next steps should be (as detailed in the minutes of that meeting). Council decided to continue the zoning violation appeal to this meeting because it did not want a technicality to interfere with resolving this to the City's satisfaction. She noted Mr. Johnson is not present again this evening. Mayor Liz& asked Administrator Heck to give a brief recap of what's occurred to date. Administrator Heck explained Mr. Johnson, who lives at 5355 Shady Hills Circle, received a zoning violation notice dated March 18, 2011, for a property he owns located at 5490 Vine Hill Road. Jerry Eastman, the occupant of the subject property, also received a copy of the notice. The violation is for having storage containers located on the property in question. Mr. Johnson was given until April 1, 2011, to bring his property into compliance. Via an email on March 19, 2011, Mr. Johnson sent the City a notice of appeal. Staff scheduled March 28, 2011, as the date Mr. Johnson could address Council on his notice of appeal; that was the date of the next regular City Council meeting. During the March 28 meeting some Councilmembers expressed concern that the zoning violation notice dated March 18, 2011, that Mr. Johnson received from the City stated he would have an opportunity to appeal to the City Council on April 25, 2011, yet his opportunity to appeal was scheduled for March 28 Council gave Mr. Johnson until the end of April 26 to remove the containers. If they are not removed by then Council has directed Staff to issue a citation to Mr. Johnson through the City's administrative penalty provision in the City Ordinance. He noted that since the March 28 meeting Mr. Johnson has sent numerous pieces of correspondence to the City. Director Nielsen noted the property in question is about 20 acres in size and it's located between Waterford Circle and Shady Hilts Circle. He explained that originally there were at least six containers placed across the front of the property in question along Vine Hill Road. The City received a complaint about the containers and in response the City sent a zoning violation notice to Mr. Johnson and Mr. Eastman stating the containers were not a permitted use in a residential district. He reiterated much of what Mr. Heck just explained. He related the Mr. Johnson has told the City the property in question is a farm and is not subject to RI-C zoning which is how the property is currently zoned. Mr. Johnson has also stated the City allows containers in certain parts of the City; the containers are not an allowable use in residential parts of the City. Mr. Johnson has been questioning the City's Ordinance relative to accessory structures. Nielsen displayed photographs of the 5490 Vine Hill Road property that were taken earlier in the day, noting Staff has not gone on to the property to take the photos. They show the containers are located in various places on the property and there are more than five or six of them. Most of the containers have been painted. Nielsen explained the City Ordinance allows for a single family residential property to have up to three accessory structures and that includes an attached garage. There is an existing garage on the house. Two of the containers could theoretically be kept on the property as an outbuilding or shed. All of them cannot CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES April 25, 2011 Page 10 of 13 remain on the property without being granted a conditional use permit (CUP). The Ordinance through the CUP process does allow for more than three accessory structures. There is a list of criterion for which that can happen with one of them being they have to match the house's building materials and architecture. He noted Staff continues to belief the property is in violation. Staff will check the property out on April 27` and if the violations have not been removed a citation will be issued. He displayed a picture of the current zoning map which indicates the property in question is zoned R1 -C, single family residential. Jerry Kenline, 5535 Waterford Circle stated he and his wife Linda have lived in their home for 25 years and they love it there. He stated they, like many property owners in that area, take pride in their homes and properties. They keep them up. He expressed his respect for what Council does on behalf of the residents of Shorewood. He stated that for him this issue is all about who has to play by the rules and who doesn't. He then stated the storage shed violations on the properly in question have gone on way to long, noting they are just one of the issues. He commented that Council will see him a lot more in the future because he's interested in maintaining the quality of the neighborhood in his area and the immediate area outside of the Waterford development. He encouraged Council to enforce the current zoning violations. He stated no property owner should receive preferential treatment. Kurt Niederiuecke 5565 Waterford Circle stated he has lived on Waterford Circle for 10 years. Since he has moved in to his current home and also based on comments from the previous owner of his property, Mr. Johnson historically has not played by the rules. He also knows that Mr. Johnson tends to act out in ways by using litigation as his tactic, noting that is difficult for a small city to deal with. He noted that he is an attorney and litigator himself. He stated he did watch the video recording of this topic during the March 28, 2011, Council meeting on television. He expressed he agreed with Director Nielsen's recommendation. He stated that he believes that Mr. Johnson needs to abide by the same rules as other residents and property owners. He encouraged Council to make that happen. He stated his looked at the property in question from his property earlier in the day and what he saw is consistent with the photos Director Nielsen displayed. Mayor Liz6e thanked the residents for showing their support this evening. Councilmember Zerby stated he continues to agree with the direction Council gave Staff during its March 28' meeting. He asked if Council needs to approve a motion stating that. Attorney Keane stated Council provided direction during its March 28 meeting. Zerby stated Council has given Mr. Johnson two opportunities to appeal before it. Councilmember Woodruff recapped that the City is going to follow its administrative citation process and that Mr. Johnson can choose if he wants to participate in that process. He noted the administrative process is not a legal / civil process. The City can go through that process after the administrative process has run its course. Woodruff stated in one or some of the emails from Mr. Johnson he stated that he has brought some sort of federal action. He asked if that is correct. Attorney Keane stated he is not aware of a federal action. Administrator Heck explained that Mr. Johnson electronically filed a motion to remove the district court action for sanctions. Mr. Johnson named the City the plaintiff and himself the defendant. The City has not taken any action in court except to defend itself against the actions of Mr. Johnson. The only thing the City has done in this case is receive an email and letter from Mr. Johnson with his motion. The past week the frn of Kennedy and Graven noticed the federal court it will represent the City should hearings be held. CITY OF SIIOREWOOD REGULAR COUNCIL MEETING MINUTES April 25, 2011 Page 11 of 13 Mayor Lizde expressed hope that Mr. Johnson will comply with the violation. She stated if he doesn't the City will follow through on filing a citation. Mr. Kenline asked what the amount of the zoning violation fine is. Director Nielsen responded the amount is $300. Nielsen stated the question is how many times the City should cite Mr. Johnson. He explained that based on his experience judges tend to not like to like multiple citations for the same violation (i.e., issuing a new citation each day). He stated Administrator Heck and he spoke earlier in the day about issuing a new citation every 10 days. What hasn't been agreed to is how many times another citation will be issued. B. Excelsior Fire District Budget Administrator Heck stated the Excelsior Fire District (EFD) Board held a second work session on April 20, 2011, to continue discussing the proposed EFD 2012 Operating Budget and 2012 — 2032 Capital Improvement Program (CIP). The proposed budget includes an anticipated $80,000 mandatory contribution to the Excelsior Firefighters Relief Association (EFRA) fund for pensions. The pension fund lost approximately $1.2 million in value during the market crash a few years ago. As a result, the fund became under funded; there are not sufficient funds to cover all of the EFRA's pension liabilities. State Statute requires municipalities /organizations to make mandatory contributions to the fund, which can be amortized over ten years, when it's under funded. The 2010 budget anticipated a $120,000 mandatory payment. That was funded by using of $40,000 of General Fund balance; $40,000 of Fire Facilities Fund balance; and about $34,000 in operating cuts. The actual 2010 contribution ended up being close to $59,000. The 2011 budget anticipated a mandatory contribution of $80,000. The approximate $62,000 remaining from the $120,000 was used to help fund the $80,000. General Fund balance was again used to help reduce the amount of increase in the 2011 municipal contribution (what the member cities collectively pay). The actual 2011 contribution ended up being over $88,000. Heck stated the question for the EFD Board and member city councils is how to fund the 2012 mandatory contribution. It can be funded totally through member city contributions, through the use of fund balances or some combination of things. The anticipated approximate $40,000 surplus in the EFD Fire Facilities Fund at the end of 2011 could also be used to help fund the anticipated 2012 contribution. Councilmember Zerby, the City's representative on the EFD Board, explained firefighters are paid a minimal hourly call rate to respond to calls. Firefighters also earn a per-year-of-service pension benefit and they are partially vested after l0years of active service. A firefighter has to respond to 33.33 percents of calls every six month to have that 6 months count toward active service. The EFRA has been in existence for about 105 years. The EFRA fund for pensions has not been able to self fund the pension fund through investment earnings (as well as state fire aid) the past few years because of market conditions. He commented that former Councihnember Bailey (who was the City's representative on the EFD Board for a while) worked with EFRA President Duncan and the EFRA Board to update the EFRA's investment policy. Zerby then explained the proposed 2012 combined increase for operating expenses and capital outlay is 1.28 percent, not including the anticipated mandatory contribution. The overall increase including the pension is 1.22 percent. The increase in the municipal contribution is 6.16 percent assuming no fund balances are used. The EFD Board is considering options for funding the mandatory contribution. The surplus is the result of using about $40,000 in unspent construction funds for part of the ETD's bonded debt payment for the facilities due February 1, 2011. This Council passed a motion earlier this year recommending that surplus remain with the ETD to be used for some EFD capital purpose. Two member city councils asked to have their portion of those surplus funds returned to them. General Fund reserves CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES April 25, 2011 Page 12 of 13 could also be used. He noted that he does not recommend doing that because the level of General Fund reserves is marginal. He stated the entire mandatory contribution could be funded out of levy. The EFD Boardmembers were asked to ask their respective City Council about using the projected $40,000 surplus there will be in the Fire Facilities Fund at the end of 2011 to help fund the anticipated 2012 mandatory contribution and to talk about other options. Councilmember Siakel stated she could support using the $40,000 surplus to help fund the contribution. She then stated it would cost the member cities more if they were served by a full -time fire department. Councilmember Woodruff stated the City's portion of the 6.16 percent increase in the municipal contribution is about 0.7 percent of the City's levy. At this time he is unwilling to do that. He suggested using the $40,000 surplus and taking $40,000 out of General Fund reserves. Mayor Lizee stated it's up to the EFD Board to decide how the mandatory contribution should be funded. She thanked the Board for soliciting input. She noted the General Fund reserves have been used the last two years. She stated reserves are needed to safeguard the level of services the cities receive. She then stated she is not going to tell the EFD Board what to do. She explained she attended the first EFD Board work session to discuss the budget in place of Councilmember Zerby. The budget EFD Chief Gerber proposed is very lean and responsible. She stated she wants to make sure the ETD has a sufficient training budget for its volunteer firefighters. She noted the cities couldn't afford a full -time fire department. She suggested the mandatory contribution be partially 'funded with the $40,000 surplus and the rest through the municipal contribution, noting she thought that is the responsible thing to do. She stated she does not recommend cutting the proposed 2012 EFD budget. Councilmember Woodruff stated there seems to be an inconsistency between two documents for this item in the meeting packet. It deals with the 2011 municipal contribution amount. Administrator Heck stated he would talk to Chief Gerber about it. Councilmember Zerby stated he thought be understood Council's desire. Planning Commissioner Hasek stated he would much rather spend an additional $8.00 on fire service than on organics waste collection. 12. STAFF AND COUNCIL REPORTS A. Administrator and Staff Administrator Heck stated Staff is close to having the information on license and permit evaluations ready for Council review and discussion. He then stated the City received a letter fi•om CenterPoint Energy indicating it's going to replace its pipe line identification posts. Director Brown stated Public Works has commenced with the watermain flushing. He encouraged the City's residents to log on to the City's website to find the schedule for when their area will be flushed. He congratulated Engineer Landini for all of his efforts to date in getting authorization to advertise for bids for the Vine Hill Road project. He stated the City received a copy of the Consumer Confidence Report from the Minnesota Department of Health which indicates the City is in conformance with the Clean Water Act and Drinking Water Standards, noting that information will be published and it will be accessible from a link on the City's website. He noted that Public Works staff had patched Vine Hill Road again earlier in the day. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES April 25, 2011 Page 13 of 13 Mayor Lizee stated she has received a few calls from residents over the weekend who wondered when the bidding process for the Vine Hill Road project is going occur. RESPECTFULLY SUBMITTED Christine Freeman, Recorder 1. :Monthly Budget Report Director DeJong stated the meeting packet contains a copy of the March 2011 General Fund Monthly Budget Report. The budget to date appears to be in reasonable shape. He noted he is not willing to project any of the individual line items very far out because it's so early in the budget year. He stated he will be meeting with department heads to verify things are on track for staying within budget. 2. Quarterly investment Report Director DeJong stated the meeting packet contains a copy of the March 2011 Quarterly Investment Report. He explained the City has a significant investment portfolio. The City is limited to what it can earn on those investments because the City is fairly restricted by State Statute and by the City's Investment Policy. The returns on short-term money going up to one year out are generally well under 1 percent. Investment strategists at the firms the City invests with believe interest rates will start to go up in 2012. He noted that interest rates and investment values go in opposite directions. He stated the City doesn't want to get stuck with a long -term, low interest rate investment as the market starts to move up. He explained under the City's investment policy the City is reaching the end of its ability to make much more in the way of investments. The Investment Policy has a restriction that 30 percent of investments must be liquid. B. Mayor and City Council None. 13. ADJOURN Woodruff moved, Zerby seconded, Adjourning the City Council Regular Meeting of April 25, 2011, at 8:34 P.M. Motion passed 510. ATTEST: -� Christine Lizee, Mayor "firian Heek,"Cify Administrator /Clerk .t