05-14-12 CC Reg Mtg MinCITY OF SHOREWOOD
CITY COUNCIL REGULAR MEETING
MONDAY, MAY 14, 2012
MINUTES
1. CONVENE CITY COUNCIL REGULAR MEETING
5755 COUNTRY CLUB ROAD
COUNCIL CHAMBERS
7:00 P.M.
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;
Interim City Administrator/Director of Public Works Brown; Finance Director DeJong;
Planning Director Nielsen; and Engineer Landini
Absent: None
Mayor Lizde noted that a camera has recently been installed to capture the audience and a microphone has
been installed over the audience area to pick up attendees comments if they speak fi that area.
Therefore, comments made in the audience may be recorded.
B. Review Agenda
Councilmember Zerby asked that Item 10.A Establish a Subcommittee for Pursuing the Job Requirements
and Search Process for the next City Administrator.
Zerby moved, Hotvet seconded, approving the agenda as amended to include Item 10.A Establish a
Subcommittee for Pursuing the Job Requirements and Search Process for the next City
Administrator. Motion passed 5/0.
2. APPROVAL OF MINUTES
A. City Council Regular Meeting Minutes, April 23, 2012
Zerby moved, Woodruff seconded, Approving the City Council Regular Meeting Minutes of April
23, 2012, as presented. Motion passed 4/0/1 with Siakel abstaining due to her absence at the
meeting.
3. CONSENT AGENDA
Mayor Lizde reviewed the items on the Consent Agenda.
Zerby moved, Hotvet seconded, Approving the Motions Contained on the Consent Agenda and
Adopting the Resolutions Therein.
A. Approval of the Verified Claims List
B. Adopting RESOLUTION NO. 12 -030 "A Resolution Approving Intoxicating
Liquor License On -Sale Intoxicating Liquor and Special Sunday Sales, for the
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May 14, 2012
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Minnetonka Country Club"; RESOLUTION NO. 12 -031 "A Resolution Approving
Intoxicating Liquor License On -Sale Intoxicating Liquor and Special Sunday Sales,
for American Legion Post #259 "; RESOLUTION NO. 12 -032 "A Resolution
Approving a 3.2 Percent `Off -Sale' Malt Liquor License, for Shorewood 2001 LLC,
dba Cub Foods"; RESOLUTION NO. 12 -033 "A Resolution Approving an Off- -Sale
Intoxicating Liquor License, for Park Square Subway, Inc., dba Shorewood
Liquor'; and, RESOLUTION NO. 12 -034 "A Resolution Approving an Off -Sale
Intoxicating Liquor License, for The Cellars Wines & Spirits of Shorewood, Inc."
C. Approval of an Agreement with Minnetonka Community Education for Lifeguard
Services for Crescent Beach
D. Accept Quote for Purchase of Seal Coat Rock, City Project 12-05
E. Accept Proposal for Safe Assure Consultants
F. Approve an Amendment to the Hennepin County Election Equipment Maintenance
Agreement
G. Adopting RESOLUTION NO. 12 -035 "A Resolution Approving a License to a
Retailer to Sell Tobacco Products, OP2C Operator, Inc."
H. Adopting RESOLUTION NO. 12 -036 "A Resolution Accepting Bid and Awarding
Contract for the 2012 Bituminous Seal coating of Streets, City Project No. 12-05."
I. Approve a Transfer of Funds from the General Fund to the Southshore Community
Center
Motion passed 510.
4. MATTERS FROM THE FLOOR
There were no matters from the floor presented this evening.
5. PUBLIC HEARING
None.
6. REPORTS AND PRESENTATIONS
A. Linda Murrell report on Fourth of July Event and Request for Support
Mayor Liz&e stated Linda Murrell, Director of the South Lake — Excelsior Chamber of Commerce, was
present this evening to highlight the activities for this year's Lake Minnetonka Fourth of July
celebration and to make an annual request for funding for the celebration.
Ms. Murrell stated from her vantage point this year's celebration will be the best ever. She encouraged
people to be around for it. She stated the day's activities include a 10K and 2 -mile firecracker race, a
sand sculpture contest (sponsored by the Rotary Club of Excelsior), a patriotic popsicle social, a kids'
patriotic parade (sponsored by Woody Love, Realtor, WoodyLove.com), kids' entertainment
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(sponsored by Nemer Fieger), a kids' fishing contest (sponsored by Knewtson Health Group), a three -
hour open block of time (orchestra sound checks), music by SaintAnyway Stompgrass Trio (sponsored
by Mediacom Communications), a short block of time for a dinner hour, Chris Thompson & Coral
Creek - bluegrass (from Colorado), a Michael Wiskus Acrobatic Air Show, a salute to the veterans with
presentation of the Colors, a performance by the Minnesota Orchestra (for its thirteenth consecutive
year in a row), and finally the fireworks display. She noted the route for the kids' parade will be about
0.2 of a mile longer than in past years. She stated that because Fourth of July falls on a Wednesday it is
anticipated the crowd will be larger. She noted fundraising for the fireworks is still going on as is
fundraising for some of the other activities. She commented that Fourth of July is only a month and a
half away.
Ms. Murrell asked the residents of the City to consider individually contributing to the fireworks
display. More funding is needed. She asked the City of Shorewood if it would make a contribution
again this year.
Councilmember Siakel stated she thought the City should make a contribution to the celebration. The
question is how much. She asked Ms. Murrell how much funding the other cities in the South Lake area
have committed to. Ms. Murrell stated the City of Deephaven has committed $1200 and the City of
Excelsior has committed $2000. She is not sure about the amount the Cities of Deephaven and Tonka
Bay are going to commit to. She explained the fireworks event is not totally dependent on the South
lake cities for their contributions, noting that two major sponsors from last year have dropped out. She
stated with the economy improving she is confident there will be more $500 donors. She noted there is
a need for help from the five cities.
Mayor Lizde stated each year the City makes a contribution to the celebration. She noted that there is
also a need for volunteers. She stated she thought it important for residents to give both time and
money to the celebration. She noted the City's 2012 Operating Budget has $7,500 earmarked for a
contribution.
Councilmember Woodruff noted the City contributed $7,500 in 2011. He staged it is his understanding
that the City is not allowed to donate money by law. Typically when the City provides funds for a
project there is either a value for it or at a minimum a report is provided showing how the donation is
spent. To his knowledge Council has never been provided with a copy of such an accounting from the
South Lake — Excelsior Chamber of Commerce. He clarified he is not asking for that accounting now,
but he would like it the next time around.
Woodruff asked Ms. Murrell what the total budget for the celebration in 2011 was. Ms. Murrell
responded it was approximately $75,000. Woodruff asked if the budget will be roughly the same for
2012 to which Ms. Murrell responded it is.
Councilmember Siakel stated she wanted to agree to a contribution amount that is sustainable. She the
stated she thought the $2,500 contribution in 2010 was too little and the $7,500 in 2011 was a little too
high.
Siakel moved, Woodruff seconded, authorizing $5,000 of funding to the South Lake — Excelsior
Chamber of Commerce's Lake Minnetonka Fourth of July celebration activities.
Councilmember Woodruff asked Ms. Murrell if municipal contributors are recognized the same, from a
sponsorship recognition level, as commercial contributors. Ms. Murrell stated they are. She explained
the contributors are listed by tiers and in 2011 Shorewood was at the top of the list.
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Councilmember Siakel stated she did not need to be provided with an accounting of how the City's
contribution is spent. She then stated this is a sponsorship of the community. It is the right thing to do.
The $5,000 amount is sustainable from year to year. She thanked Ms. Murrell for the amazing job she
does with organizing the celebration.
Mayor Lizde stated it takes the skill level of many people to make the celebration happen. And it needs
a budget that can consistently be counted on. She explained that because the City is a member of the
South Lake — Excelsior Chamber of Commerce the City's contribution is legal. She stated she did not
think any special accounting of funds needs to be generated for Council.
Councilmember Zerby stated he believes the celebration is a great event. It is why some people move to
the South Lake community. He noted that Don Shelby, formerly with WCCO, emceed part of the 2011
celebration and he hopes lie will do it again this year. He also noted that Mr. Shelby has publically
stated the experience of the celebration is one of the reasons he chose to move to the area. Ile stated
that Ms. Murrell does an amazing job of securing a huge amount of entertainment for the least cost
possible. He stated he does not need to be provided with an accounting of funds. He noted that he has
been intimately involved with the South Lake — Excelsior Chamber of Commerce and he knows there
are no hidden secrets. He wholeheartedly supports what the Chamber does.
Councilmember Siakel asked the City's residents and the residents in the other cities around Lake
Minnetonka to make a contribution to the celebration.
Councilmember Woodruff clarified that he had not intended to imply that whatever is being done is not
legal. He stated it is his understanding that because of the way the contribution is done the Council
should ask for some accounting of how the contribution is spent. Ile then stated he is sure the money is
spent the way it is supposed to be. And, the City has never been challenged on the contribution.
Councilmember Zerby noted that the South Lake — Excelsior Chamber of Commerce pays for public
safety, insurance, porta potties and so forth. There is no burden to the City for those things. He stated
the value for the City's contribution is very good.
Ms. Murrell noted that if all of the volunteer services had to be paid for the cost for the event would be
around $180,000. She stated the money for the event is spent very carefully.
Motion passed 510.
Ms. Murrell thanked Council and the City.
B. Presentation by Lynn Johnson on Tour de Tonka August 4, 2012, Event
Mayor Lizde introduced Lynn Johnson who was present to give a report on the August 4, 2013, Tour de
Tonka.
Ms. Johnson stated she is here this evening to represent Minnetonka Community Education (MCE) and
more specifically the Tour de Tonka. She explained that she currently serves by advisory board for NICE
and she has been a member of the Tour de Tonka committee since its inception.
Ms. Johnson explained the Tour de Tonka is an annual NICE multi - distance bicycle ride through Lake
Minnetonka communities. It promotes healthy life styles, friendships, teamwork and recreation through
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the collaboration of cities, sponsors, local charities, and hundreds of volunteers. In 2006 there were 861
riders. There were 2448 in 2011. That is a 300 percent increase. The riders have been between 5 and 82
years of age. The types of bikes ridden are very diverse. Biking is growing in popularity for individuals,
groups and families. In 2011 19 states, 29 Minnesota counties, 163 communities were represented. There
were also 3 riders from Canada. The Lake Minnetonka communities were also well represented. There
were 303 riders from the City of Minnetonka and there were 197 from the City of Shorewood. The greater
community was also represented very well. She told a story about how a woman rider in the Tour de
Tonka a few years ago decided to buy a home in Shorewood that she came across along one of the routes.
In 2011 there were 17 -mile (315 riders), 23 -mile (3765 riders), 40 -mile (880 riders), 70 -mile (412 riders)
and 100 -mile (465 riders) routes. There were alterations in the routes for 2012 based on rider feedback.
There is a committee that focuses only on the routes. For 2012 there will be 16 -mile, 26 -mile, 43 -mile,
77 -mile and 100 -mile routes. To date Tour de Tonka has contributed over $21,000 to the ICA Food Shelf.
There is a miles of smiles ride for ages 3 — 7 that is either 2 miles for 4 miles long. In 2011 there were 84
participants. It is a great thing to volunteer for. An event the size of Tour de Tonka could not be put on
without the help of the volunteers from the municipalities. Last year there were 387 volunteers and 278
positions on the course.
The 2012 sponsors are Cub Foods Minnetonka, Tonka Bay Marina, Speedpro Imaging, Maple Grove
Cycling, and Invieta. Riders and volunteers all get a Tour de Tonka shirt. The website is
www.tourdetonka.org and the phone number is 952.401.6800.
Ms. Johnson noted the Tour de Tonka is always looking for volunteers. She thanked volunteers for
helping out with this event. She stated the riders and volunteers can all celebrate fitness and healthy
living.
Mayor Liz6e stated this is a nice partnership between NICE and all the Lake area cities.
7. PARKS
A. Report on the May 8, 2012, Park Commission Meeting
Interim Administrator/Director Brown reported on matters considered and actions taken at the May 8,
2012, Park Commission meeting (as detailed in the minutes of that meeting).
8. PLANNING
A. Report on the May 1, 2012, Planning Commission Meeting
Director Nielsen reported on matters considered and actions taken at the May 1, 2012, Planning
Commission meeting (as detailed in the minutes of that meeting). He noted that the Commission would
like to have a brief discussion about Zoning Permits during its joint meeting with Council on June 11 to
discuss the Smithtown Crossing Study.
Mayor Liz6e noted that Planning Commissioner Charbonnet is present and he will provide the Planning
Commission with an update on this Council meeting.
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9. ENGINEERING /PUBLIC WORKS
None,
10. GENERAL/NEW BUSINESS
A. Establishing a Subcommittee for Pursuing the Job Requirements and Search
Process for the next City Administrator
Mayor Liz& explained that during its work session immediately preceding this meeting Council agreed to
establish a committee comprised of two Couneilmember and two staff members to discuss parameters for
an interim city administrator. A permanent administrator would not be selected until the 2013 council has
taken office although most of the work will be done before then. Councilmembers Siakel and Woodruff
will serve as members on the committee. Stall will select two representatives during its staff meeting on
May 15.
Councilmember Zerby stated the idea is to begin the executive search process that was outlined in the
work session meeting packet. It involves developing the position profile for the city administrator.
Council and the Committee will work together to determine the qualifications in the next city
administrator that will best serve the City and staff. fie commented that he thought it would be best to
have, for lack of better words, a bipartisan committee that could refine the position profile and job
description for the job.
Zerby moved, Hotvet seconded, establishing a subcommittee consisting of Councilmembers Siakel
and Woodruff and two to -be- determined staff members to work on refining the position profile and
job description for the next city administrator and to report back to Council on a regular basis.
Motion passed 510.
11. OLD BUSINESS
None.
12. STAFF AND COUNCIL REPORTS
A. Administrator and Staff
Interim Administrator /Director Brown explained Deputy Clerk Panchyshyn forwarded Council a copy of
a report about the City's ISO rating. The Excelsior Fire District is going to contest the individuals who
compiled the report on some of the calculations and conclusions. The hope is to have the City's ISO
rating increased. Once this ISO report is finalized it is very unlikely that there would be much change in
the City's rating in the future. He asked Councilmembers to keep the report that was distributed.
Brown stated he will attend the May 16, 2012, Mound Fire Commission meeting.
Engineer Landim stated he was asked by the Minnehaha Creek Watershed District to inform Council that
there is an Are We Ready? Forum scheduled for May 15 from 6:30 — 8:30 P.M. at the St. Louis Park
Recreation Center to talk about changing weather patterns and how they may impact how the
communities handle stormwater in the future.
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1. Quarterly Investment Report
Director DeJong stated the Investment Report that the City's investment earnings are dismal. Short-term
investment earning rates have declined the last few months. At this time there if no future in going out
beyond a very short-term investment horizon. He commented that he thought the interest earning rates
will stay low until into 2014.
Chair Zerby noted the City made a loan to the Excelsior Fire District (EFD) in 2011 for the purchase of
self contained breathing apparatus. He asked if that investment is doing well. Director DeJong responded
the earnings on that loan are substantially above other earnings. Zerby noted that the EFD is looking at
purchasing a new engine and he suggested the City consider another loan to the EFD for that purpose. It
would be another opportunity for the EFD to save money and for the City to make money.
2. Other Operating Funds Financial Report
Director DeJong stated the report for the other operating funds is through March 31, 2012. It reflects a
check written to Community Ree Resources for April that was inadvertently coded to March. The check
amount was for close to $5,700 in additional expense.
Councilmember Woodruff stated when he read the report he became concerned about the deficit in the
Southshore Community Center (SSCC) fund. In 2011 at this point in time the deficit was approximately
$12,000. The report through March 2012 shows the deficit to be approximately $22,000. Based on what
Director DeJong just explained the deficit is $5,700 more than it should be. It is still more than $4000 —
$5000 than in 2011 and he thought it prudent to pay attention to that throughout the year.
Councilmember Siakel suggested having a work session to discuss the SSCC. Mayor Lizee stated that
will be discussed for sure as part of the 2013 budget discussions. Lizde then stated she agrees with
Councilmember Zerby's previous recommendation to have the SSCC included as part of parks and
recreation. She went on to state the other four members of the SSCC need to be brought into discussions.
Other
Director Nielsen stated when he was on vacation last week he received correspondence from Kennedy K
Graven, the firm representing the City on matters dealing with legal issues with Ron Johnson and his
wife. The firm sent him a copy of a court order. The court order explained that recently the Court issued
an order prohibiting the Johnson from filing any papers in District Court without prior written approval
or the representation by a licensed attorney. The Johnson's wish to appeal it and asked for an extension of
time to do that. The Johnson also asked to consolidate that with another previous case. The Court denied
both of those requests.
Attorney Keane stated it was a very straight forward order.
B. Mayor and City Council
Councilmember Hotvet stated she is in her third week of participating in the organics recycling pilot
program in the City. It has been a great experience for her and her family. At their home they are just
about down to one back of trash a week because they recycle so much (both regular recycling and
organics recycling). She explained the organics recycling cart is very small. She encouraged residents to
give it a try.
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Mayor Liz6e noted that she and her husband also participate in pilot program. She stated it is easy to do
and the two recycling companies that are participating in this program continually try to make it even
easier.
Councilmember Woodruff asked Staff to report on the take rate (the number of participants) on the
program.
Councilmember Woodruff stated that on April 26, 2012, he and some staff members visited the recycling
facility in Inver Grove Heights. For some of the staff it was their second trip there. He was impressed by
what he observed. He learned that 94 percent of the recycling material collected is recycled and a great
deal of the product produced is used in Minnesota.
Woodruff then stated he attended the Metro Cities annual meeting. The guest speaker was Professor Larry
Jacobs, Director of the Center for the Study of Politics and Governance at the Humphrey Institute of
Public Affairs. He was very entertaining. The White Bear Lake City Manager Mark Sather was elected
president and the Waconia City Administrator Susan Angst was elected Vice- President. Chanhassen
Councilmember Vicki Ernst was reelected to the Board of Metro Cities.
Mayor Liz6e noted she and Councilmember Siakel attended Eagle Scout Terrence Haines' Court of
Honor on May 6, 2012, at the Southshore Community Center. Eagle Scout Haines and his fellow scouts
and helpers did a major project at Badger Park. The celebration was nicely done. She thanked Eagle Scout
Haines and all the other Eagle Scouts and Eagle Scout candidates in the community.
13. ADJOURN
Woodruff moved, Zerhy seconded, Adjourning the City Council Regular Meeting of May 14, 2012,
at 7:54 P.M. Motion passed 510.
RESPECTFULLY SUBMITTED
Christine Freeman, Recorder
ATTEST:
Christine Liz6e, Mayor
City Administrator /Clerk