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05-29-12 CC Reg Mtg MinCITY OF SHOREWOOD CITY COUNCIL REGULAR MEETING TUESDAY, MAY 29, 2012 MINUTES 1. CONVENE CITY COUNCIL REGULAR MEETING 5755 COUNTRY CLUB ROAD COUNCIL CHAMBERS 7:00 P.M. Mayor Liz6e called the meeting to order at 7:02 P.M. A. Roll Call Present. Mayor Liz6e; Councilmembers Hotvet (arrived at 8:I1 P.M.), 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. B. Review Agenda Mayor Liz6e noted that after this meeting is adjourned Council will go into an Executive Session. She stated that Item 6.13 Programs at the Southshore Community Center — Presentation by Mrs. M is being added to the agenda. Attorney Keane asked Mayor Liz6e to note the closed Executive Session is being called to review personnel issues pursuant to Minn. Stat. 13d.05 Subd. 3. Liz6e made that notation. Zerby moved, Woodruff seconded, approving the agenda as amended. Motion passed 4/0. 2. APPROVAL OF MINUTES A. City Council Work Session Minutes, May 14, 2012 Woodruff moved, Siakel seconded, Approving the City Council Work Session Minutes of May 14, 2012, as presented. Motion passed 4/0. B. City Council Regular Meeting Minutes, May 14, 2012 Woodruff moved, Zerby seconded, Approving the City Council Regular Meeting Minutes of May 14, 2012, as presented. Motion passed 4/0. 3. CONSENT AGENDA Mayor Liz6e reviewed the items on the Consent Agenda. Woodruff moved, Zerby seconded, Approving the Motions Contained on the Consent Agenda. A. Approval of the Verified Claims List B. Authorize Expenditure of Funds for Eddy Station Restroom Locks CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES May 29, 2012 Page 2 of 17 C. Appointment of Temporary Seasonal Employee for Public Works D. Financial Agreement for Finance of Equipment Lease/Purchase for Excelsior Fire District (This was moved to Item 10.0 under GeneraUNew Business.) E. Redesignation of Administrator Working Group (This was moved to Item 10.13 under General/New Business.) Motion passed 4/0. 4. MATTERS FROM THE FLOOR ]'here were no matters from the floor presented this evening. 5. PUBLIC HEARING None. 6. REPORTS AND PRESENTATIONS A. Recognition of Service for Former Park Commissioner Thomas Rob On behalf of the Council and the residents of Shorewood, Mayor Liz& thanked Thomas Robb for his three years of service as a Park Commissioner and presented him with a plaque of appreciation and recognition. She commented that it seemed as if former Commissioner Rob had been involved with the Commission for longer than three years. She stated the Commission had a lot on its plate the last three years. The Commission has evolved to one that does a great deal of strategic planning for the City's parks. Former Commissioner Robb thanked Council for being given the opportunity to serve on the Park Commission. He stated he hoped he bought value because of his involvement. He then stated that he hoped that he would have the opportunity to serve Shorewood again in the future. B. Programs at the Southshore Community — Presentation by Mrs. M Mayor Lizee introduced Mrs. M (Joy Meyer) and noted that Mrs. M puts on programs at the Southshore Community Center (SSCC). Mrs. M noted children started calling her by this name and it has stuck. She explained that has been in partnership with the SSCC for about ten months ago. She stated she is viewed as creating a family atmosphere. Mrs. M stated her mission is to connect children with nature, science, animals and art. Those are her four focus points. She explained why that is important. Nature is one of the ways to create well rounded children and colleges are looking for well - rounded children. When a child learns to be good with animals hopefully down the road they will learn to keep those animals well and treat other children well. Hands on science excites children. Creativity generates new interest. Mrs. M reviewed what she does differently. She provides multi -age, open - ended, gifted and talented programming. She has had her leadership academy for children twelve years of age or older for more than eight years. It allows them to help volunteer at programs. She encourages children to create fun on CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES May 29, 2012 Page 3 of 17 purpose. Her programs are great hands on learning experiences for children. They have the opportunity to go outside, do projects, hike, go on field trips and more. Mrs. M explained her well rounded programs enhance every school program by reigniting children's interest with the four focuses she does. She has built camps and programs in other communities to full capacity. She has over twelve years of classes in the west Metro area. She has been involved with over fifteen years of after- school and pre - school programs. She has been involved with scouting programs for over fourteen years. She is a mother of three and they are all college graduates. Mrs. M stated she believes this community of people who value their families and children. There are a number of businesses who believe in what she does and they have sponsored her. Mrs. M explained she has hosted a number of community events with the Animal Open House being one of them. She has worked with animals. She will be involved with the Safety Camp. For her Animal of the Month program she goes to local schools. She does approximately 25 classes monthly. They are free to the teacher. She promotes community involvement. She has ICA donations all year long. To date approximately 300 pounds of food has been dropped off. She conducts intergenerational programs. Mrs. M asked Council and the City to welcome her, support her, be invested in her programming, and endorse her. She suggested someone ask for a feature article as a welcome that could potentially be published in the Sun Sailor. She puts on affordable, quality Nature programs at the SSCC. She does not cancel the programs if the number of registrants is small. She asked for help in providing information about her event and program information to the other South Lake communities, the news, the schools and more. Her affordable year -round programs help to build the SSCC and a stronger community for all. She asked for help in offering her Camps for Kids in Need. The cost is $90 for a five -day, three -hour programs. Also, for help in promoting her programs as enhancements to school programs and other community programs; notjust competition. Many of the programs she puts on cannot be done at a school. Mrs. M encouraged Councilmembers and members of the community to bring their children to one of her programs. She is confident they will be impressed with the programs. Hopefully, they will spread the word about the quality of them. She asked for help in making copies because she is a huge asset to the community. Some of the programs she offers are different than what others offer. She stated her heart is with the community and noted that she does not think she can sustain her programming without support. She then stated her sponsors can only help sponsor smaller programs. She distributed a packet. One of the things in the packet was a list of Mrs. M's camps and events. Mayor Lizee thanked Mrs. M and noted that her enthusiasm is infectious. She stated she is aware that Mrs. M has been working closely with the SSCC manager of operations. She noted Mrs. M was present at Eagle Scout Terrence Haines' Court of Honor held at the SSCC and shared her enthusiasm about how Haines' project engaged the community in something positive. She wished Mrs. M well. t1�7�:76`1 None. 8. PLANNING A. CONDITIONAL USE PERMIT FOR ACCESSORY SPACE OVER 1200 SQUARE FEET CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES May 29, 2012 Page 4 of 17 Applicant: Dale Christensen Location: 5355 Elmridge Circle Director Nielsen explained Dale Christensen has applied for a conditional use permit (C.U.P.) to construct accessory space in excess of 1200 square feet on his property located at 5355 Elmridge Circle. The property is zoned R -lA /S, Single- Family Residential /Shoreland and it is approximately 1.25 acres in size. Mr. Christensen has an existing garage on his property and he proposes to build a detached, single -story garage at the south end of his property. The new detached garage will have 896 square feet of area. It will bring the total area of accessory structures on the site to 1652 square feet. Therefore, he needs a C.U.P. Nielsen reviewed how the application complies with the criteria for granting a C.U.P for accessory space over 1200 square feet. 1. The total area of accessory buildings (1652 square feet) does not exceed the floor area above grade of the existing home (2264 square feet). 2. The total area of accessory buildings does not exceed 10 percent of the minimum lot size for the R -I A/S zoning district (.10 x 40,000 = 4000 square feet). 3. The proposed garage addition complies with R -IA /S setback requirements. Proposed hardcover on the property is approximately 18 percent, well below the 25 percent maximum. The new garage will be situated in an existing clearing in the otherwise wooded front of the property. 4. The design and proposed materials for the detached garage are consistent with the architectural character of the existing home. Nielsen noted that based on the analysis, Staff had recommended to the Planning Commission that the applicant's request for a C.U.P. be granted as proposed. He explained the Commission had some concerns about the locations of a number of large trees that would be near the proposed garage location, with a particular emphasis on a very large linden tree. The Commission recommended approving the C.U.P. subject to locating the proposed garage an additional eight feet to the northwest in order to better protect a large linden tree that would be behind the proposed garage. Nielsen explained the Commission also recommended that property owners to the east agree to the new location. They had already agreed with the plan as submitted. He, Mr. Christensen and the neighbor met on site to review where the proposed garage would be. Mr. Hotvet, the neighbor, prefers the garage be built in the original proposed location. Moving it to the northwest would block some of his view. Nielsen noted that Mr. Christensen is very concerned about his trees. He explained Mr. Christensen hired an arborist to provide him advice about the trees that would be located near the proposed garage location. The arborist recommended chemically treating the linden tree to put it into a state of dormancy to reduce stress on the tree during construction and when it comes out of dormancy. He stated that he had recommended Mr. Christensen speak with his arborist about saw - cutting the roots at the back edge of the building. The arborist recommended saw - cutting the roots around the proposed garage. Saw - cutting the roots of the trees would be easier on the trees than ripping the roots out of the ground. The arborist also agreed to place a bed of wood chips over the nearby root systems near the back of the proposed garage to cushion the ground where construction activity will take place. These three measures are the most comprehensive tree protection plan the he has seen submitted. They clearly demonstrate the applicant's desire to save his trees. Nielsen stated the meeting packet contains a copy of two resolutions for Council's consideration, noting CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES May 29, 2012 Page 5 of 17 this is something he does not normally do. One resolution is per the Planning Commission's recommendation. The alternative resolution does not include a condition to move the location of the proposed garage, and it does include a condition to provide protective measures recommended by the applicant's arborist to protect significant trees adjacent to the location. He noted that he recommends adopting the alternative resolution. In response to a comment from Councilmember Zerby, Director Nielsen stated the Planning Commission has not seen a copy of either of the two resolutions. Nielsen reiterated the Commission recommended approval subject to moving the location of the proposed garage eight feet to the northwest. The Commission also qualified it by asking Staff to check with the neighbor about the proposed change in location. Mayor Lizde stated she is intrigued by the process to force the tree into dormancy. Director Nielsen again noted that Mr. Christensen is very concerned about his trees, including the large linden tree. Zerby moved, Siakel seconded, Adopting RESOLUTION NO. 12 -038 "A Resolution Granting a Condition Use permit for Additional Accessory Space to Date Christensen, 5355 Elm Ridge Circle" as shown in the alternate resolution included in the meeting packet. Motion passed 4/0. B. Comprehensive Plan Amendment Revising the Transportation Plan Map Director Nielsen noted that this is very much what Staff considers this to be a housekeeping measure. Director Nielsen explained in January 2012 the City Engineer proposed modifications to the Minnesota State Aid (MSA) routes located in the City. Cities with populations of over 5000 are eligible for MSA funding. Therefore, Shorewood is eligible. MSA money comes from the sales taxes generated by the sale of gasoline. Nielsen reviewed the modifications the Engineer has proposed. They are as follows. • Birch Bluff Road and Eureka Road (north) will be added to the MSA route map. • Apple Road will be added to the map. • Grant Lorenz Road will be removed from the map. • Galpin Lake Road will be added as a future MSA route. • Excelsior Boulevard will be removed as a future MSA route. Nielsen displayed a copy of the revised Transportation Plan Map. He noted that Council has approved the changes in January. He explained that although the above changes are considered to be a "housekeeping measure ", they did require an amendment to the Comprehensive Plan which in turn required a public hearing to present the proposed amendment. After the City Council has approved the amendment it will be forwarded to the Metropolitan Council. Staff anticipates that this item will be processed as an administrative amendment, foregoing the need to route the amendment to adjoining cities and affected agencies. Some cities do not include their MSA routes in their comprehensive plans. He noted the MSA division of Minnesota Department of Transportation has already approved the changes. Nielsen noted the Planning Commission unanimously voted to recommend approval of this amendment to the Transportation Plan Map which will be included in the Comprehensive Plan. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES May 29, 2012 Page 6 of 17 Woodruff moved, Adopting RESOLUTION NO. 12 -039 "A Resolution Adopting an Amendment to the Shorewood Comprehensive Plan 2009 Pertaining to Minnesota State Aid Routes in the City of Shorewood." Councilmember Woodruff explained the net effect of doing this is to give the City better financial flexibility in implementing the City's 20 -Year Pavement Improvement Plan. It will give the City an opportunity to use state money for some roadway improvements. Director Nielsen explained MSA routes need to loop with another MSA route in a city, connect to a county or state aid highway route, or connect to an MSA route in an adjoining city. Zerhy seconded. Motion passed 4/0. 9. ENGINEERING/PUBLIC WORKS A. Approve Plans for Apple Road Creek Restoration Project Mayor Liz €e stated this is close to the last phase of the Apple Road Creek Restoration Project Engineer Landini explained that this evening Council is being asked to approve the plans for the Apple Road Creek restoration as submitted by Wenck Associates. The firm revised its plans per comments submitted from the Minnehaha Creek Watershed District (MCWD) regarding sketches submitted by the residents. He reviewed some of the differences between Wenek's plans and the sketches submitted by the residents. The plans utilize boulder check dams; the resident sketch requested concrete check dams. The plans specify boulder type rock instead of the limestone rip rap suggested in the resident sketch. The resident sketch suggested bio engineer rolls to line the creek; the plans utilize brush bundles built from materials harvested on site. The resident sketch showed the City of Chanhassen removing the replacing the tributary storm pipe. Chanhassen is not interested in replacing the pipe because it is in good condition. Landini noted Staff has asked three contractors to submit quotes for the construction portion of the project. They will be discussed during the next agenda item if Council accepts the plans. George Kramer, 24000 Stratford Place stated in an email Engineer Landini stated that some of the trees the residents recommended for approval are too close to the power lines to be removed. He asked Landini if the City will ask Xcel Energy (Xcel) to remove them. Landini stated he assumes that over time Xcel will trim the trees, but he has not requested Xcel to remove the trees. Mr. Kramer stated there are dead trees that could fall and he asked if Xcel needs to be notified. Interim Administrator /Director Brown stated if the residents want the trees to be removed or topped Staff can inform Xcel of that desire. Mr. Kramer stated there are large trees the residents asked to be removed that the crew from the Minnesota Conservation Corps (MCC) indicated they cannot remove. Landini stated they will not be removed. The MCC doesn't have the equipment to do that. Mr. Kramer then stated Bill Tomlinson, 22035 Stratford Place, has noticed that there is some vegetation in the area that appears to do well in the shade. He asked if the residents could ask for that type of plant to be considered for the replanting. Engineer Landini stated Wenck Associates has a list of the general types of planting it will be using but not specific plants. A list of the plants that are classified as certain type of plantings can be found. Landini noted that Wenck intends to plant plug and plants next spring and the seeding will be done as soon as the rock bed is installed in 2012. There is still time to talk about specific plants. Me. Kramer stated he understands there will be an opportunity to requests certain types of plants. Landini responded that is correct. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES May 29, 2012 Page 7 of 17 In response to a question from Councilmember Siakel, Engineer Landini explained the tree removal by the MCC is complete. The MCC does not have the equipment to take down some of the trees residents requested for removal because of size and /or location. No trees were removed that were marked to be saved. Siakel asked if it would be wise to have a plan to remove the trees designated for removal that were not removed by the MCC. Landini explained that Wenek Associates adjusted its plans based on the trees removed. Siakel stated that one of the concerns early on was if enough trees were not removed there would not be enough natural sunlight for new plants to grow. Siakel asked if enough trees were removed. Landini explained the plant types and schedule were adjusted to work with the trees removed and more rock was added. He stated the project should be very successful when complete. Mayor Liz& stated now that the plans have been adjusted she asked if the plans work within the MCWD's parameters. Engineer Landini stated they do. Councilmember Siakel asked if the residents are happy with the adjusted plans. Engineer Landini stated this meeting is their opportunity to voice any displeasure they have. Zerby moved, Siakel seconded, approving plans prepared by Wenck Associates for the Apple Road Creek Restoration Project as presented. Motion passed 4/0. B. Approve Quotes for Apple Road Creek Restoration Project Engineer Landini explained Staff has asked three contractors to submit quotes for the construction portion of the Apple Road Creek Restoration Project. Two contractors provided quotes. The low quote is from Kusske Construction for an amount of $37,625. The Capital Improvement Program includes a budget of $37,000 for this project. He noted he is trying to secure financial assistance from the City of Chanhassen and the Minnehaha Creek Watershed District (MCWD) to help fund the project. Earlier in the day he received a letter from Chanhassen stating its pledging $3,500. The MCWD will consider the project for financial assistance during its June 14 °i workshop and then possibly during its June 28` Board meeting. The MCWD historically considers a maximum of 50 percent project cost participation. The last part of the project will be live plantings. There will be 6 — 8 days of work remaining on the Minnesota Conservation Corps (MCC) grant to help with the plantings. Landini stated lie is seeking Council approval to move forward with Kusske Construction, Inc. for an amount not to exceed $37,625. He noted lie will continue to try and secure 'financial assistance for this effort. Mayor Liz& stated the City's partnership with the MCWD has been good; therefore, she hopes they will provide financial assistance. Councilmember Zerby asked Engineer Landini if he has any idea what the cost of the plantings will be. Engineer Landini said he did not. Zerby asked if it would be less than $10,000. Landini responded his crystal ball indicates the cost for the plantings will be less than $10,000. Councilmember Siakel asked Engineer Landini to clarify if the only thing remaining after the construction phase will be the plantings. Engineer Landini confirmed that. Councilmember Woodruff stated there could also be labor time if the 6 — 8 days of MCC's time is not sufficient. Woodruff moved, Zerby seconded, accepting the quote from Kusske Construction for the construction portion of the Apple Road Creek Project for an amount not to exceed $37,625 and directing the Finance Director to include a line item for plantings in the 2013 budget. Motion passed 4/0. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES May 29, 2012 Page 8 of 17 Councilmember Zerby thanked Engineer Landini for his efforts and for the extraordinary job lie did working with the residents to come up with an effective solution and a solution the residents like. Mayor Liz& and Councilmember Siakel expressed their thanks to Engineer Landini and to the residents. George Kramer also thanked Engineer Landini C. Sanitary Sewer Televising Mayor Liz6e stated the meeting packet contains a copy of a proposal from RedZone Robotics, Inc. (RedZone) to use robotics to televise the entire sanitary sewer system. She noted that Matt Loberg with RedZone is present this evening to answer questions from Council. Engineer Landini explained the City televises small segments of the sanitary sewer system each year. If that size of the increments were averaged out it would take approximately 24 years to televise the entire system. The City budgets $70,000 annually to do the televising. Mr. Loberg approached the city with a different idea. RedZone proposes televising the entire system for a cost of $415,584 spreading the cost over a three -year period. RedZone also offered to reduce the cost to $386,920 if the City were to make one lump -sum payment. This approach would save many hours of staff time each year preparing for the smaller televising projects. Landini then explained RedZone would use a robot (Solo) to do the televising. It would collect a Global Positioning System (GPS) signal at every manhole to increase the City's accuracy in its Geographic Information System (GIS) database. The videos could be imported into the Cartegraph System. It would populate all of the data points in the asset management program at a future date. It would help in planning for cleaning the system, and for future repairs and maintenance of the system. The last few televising projects have indicated that some of the rubber gaskets used to seal the pipes have turned into the pipes and that could cause problems in the future. Mayor Liz6e stated she found the proposal interesting. Mr. Loberg noted that he is aware that RedZone is the only proposed vendor for this project. He clarified that a great deal of what RedZone does is provide technical services. RedZone is not really a contractor per se. He stated that by RedZone providing all of the information about the sanitary sewer system infrastructure at once and putting it into database and then enhancing the Cartegraph database the City will be able to prioritize and address the sanitary sewer system's most critical needs. Councilmember Siakel stated if the City were to televise the entire sanitary sewer system she asked when that world have to be done again. Mr. Loberg explained if the City did a system -wide inspection it would be able to determine where the trouble spots in the system are. A lot of new pipe, such as PVC pipe, does not need to be inspected as often. With this proposed program staff will be able to better prioritize cleaning and maintenance schedules. It will provide baseline information that will indicate where spot checks on troublesome areas should be done. He then stated it is tough to estimate when it should be done again. Interim Administrator /Director Brown explained that the City's sanitary sewer system is constructed with PVC pipe and that is somewhat unusual. No one knows how long PVC pipe will last. The materials appear to be holding up well. What is apparent is the clay materials underneath tend to shift. Joints are pulling apart and /or gaskets have turned into the pipe. One claim was caused by that. A lot of the potential issues have to do with what the pipes were bedded upon and whether they move or not. Problem areas identified initially will be problem areas in the future, and areas that are stable will likely remain stable. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES May 29, 2012 Page 9 of 17 He stated if the City were to televise the entire system as proposed by RedZone he does not think it would have to be done again for 10 — 15 years. But, there may be a need to return to areas that were repaired to ensure they remain stable but they should be limited areas. Mr. Loberg stated that when doing rehabilitation work with a contractor a contractor would most likely have to do a pre and post inspection. The data provided by the contractor could be put into the Cartegraph system. Councilmember Woodruff stated he does not have a clear understanding of the financial perspective of the proposal. Based on the proposal RedZone would provide the inspection services and it would also install a system that needs to be used, updated and maintained. The proposal states that after the first three years there is a $10,800 annual maintenance fee. He presumes that involves a license to the software and if it were not paid the City would lose its license. He expressed concern there is no information about how much staff time will be used to learn the system and how many will need to learn it. He noted that the proposal states two different numbers for consulting service hours for integrating data into the City's database. The per -hour -cost is $110 if the number of hours if the contract hours are exceeded. He stated he is not sure how typical it is for a city to accomplish what it needs to with 100 hours of consulting services. Mr. Loberg clarified it is actually 150 hours. Woodruff recommended that Staff do a much more in -depth evaluation of this. He commented that he thought the technology that would be used is great. He asked if the City would have to purchase another server, noting the software runs on a server. Engineer Landini explained that RedZone posts all of that information on its website. Mr. Loberg explained RedZone delivers all of the information in hosted software called ICOM3. ICOM3 is similar to Cartegraph but it specifically addresses sewer and water. ICOM3 is a service model. It requires no server space. All of the information is stored in a Tier 1 database in the Cloud. There is a user name and password login. There is a requirement for a removable hard drive for all of the video runs for all of the line segments. Councilmember Woodruff asked what bandwidth is needed to access the software. Will this force the City to buy something it does not have enough of? He commented that this roughly parallels buying a new finance system. He stated from his vantage point there is not enough information to make a decision. He then stated he appreciates the offer. He suggested Staff do more introspection on this. Councilmember Zerby stated the proposal quote is for less than 500 miles of segment length. He asked if that is the smallest offering. He noted that the City has approximately 50 miles of pipe. Mr. Loberg stated that less than 500 miles of asset is the smallest. Mr. Loberg stated there would no cost difference if RedZone did have Tess than a 100 -mile offering. Zerby stated he interprets that to mean there is no difference in the RedZone's cost to run the system if it is 50 miles or 499 miles. Mr. Loberg responded that is correct. Zerby then stated he is surprised that the Solo unit itself is standard definition; not high definition. He went on to state that he shares Councilmember Woodruff s perspective that there are a lot of questions that need to be answered. One of them is if it is worth it. He questioned what the cost savings will be from an inflow and infiltration (I &I) perspective. The cost for this is close to the cost of a new fire truck. He noted that he needs additional information before he could support moving forward with this proposal. Mr. Loberg explained that the cost of the lump -sum payment equates to $1.57 per lineal foot (including manhole inspections). The cost for a local conventional contractor would be much higher than that. That contractor would have to partner with other vendors to do the inspection, do manhole inspections, find a software company to host the data, and there is the engineering cost for the implementation. He noted that CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES May 29, 2012 Page 10 of 17 when speaking with Engineer Landini RedZone's costs are well below what bid costs normally are. He then noted that a major benefit of this is to be able to get all of the data at once and then be able to make decisions based on the data as opposed to contracting out each year over more than a 20 -year period. He stated that the total cost at first glance may be overwhelming, but the value that will be realized is in the out years. Councilmember Zerby asked if the proposal includes having RedZone operate the robot. Mr. Loberg responded it does. Zerby asked if that means the City staff time is for learning to use the ICOM3 system. Mr. Loberg explained that it allows the existing staff to handle day -to -day maintenance activities. Duties RedZone refers to as reactive duties. The 150 hours of engineering services include training, implementing everything into the City's current GIS database as well as what the City wants implemented into Cartegraph. He noted that different levels of privileges can be granted in the ICOM3 software. Councilmember Woodruff stated he did not find anything about a software license in the proposal. He asked what the City's rights would be. He then stated if the City makes a substantial investment in RedZone upfront and if for some reason RedZone no longer supports the product or if it goes out of business he would like to be assured that the City gets rights to the source code. Mr. Loberg stated for the first three years the City would get constant synchronization updates to the ICOM3 software. If the City did not want to pay the $10,800 annual maintenance fee and software service charge at the end of the three -year period the City would be version locked at the last update the City synchronized. The City would own that version of the software. Councilmember Woodruff stated if RedZone is not there to support the software he asked what the City would do. Mr. Loberg stated if RedZone went out of business there would most likely not be any ICOM3 left. Mr. Loberg noted that RedZone is not going away. In response to a comment from Councilmember Zerby, Mr. Loberg stated the rough estimate based off the total footage of 245,870 lineal feet for the $386,920 lump -sum payment breaks down to $1.57 per lineal foot. He noted that it includes the inspection of approximately 1120 manholes. In response to another comment from Zerby, Mr. Loberg stated the proposal states it costs $0.30 for the Solo system and that will leave $1.27 per lineal foot. Within that $1.27 every manhole will be inspected and that typically costs $50 each. The 150 hours of engineering services at $110 per hour are also factored into that rate as are the costs for the hosted software application. The City will receive a fully- fimetional GIS color coded map that can be used to query up various results for things such as the dirtiest pipes based on an industry standard called PACP. The Solo and the method of inspection is just a fraction of the per lineal foot cost being offered. Mayor Liz6e stated she thinks there would be value in having a baseline view of the condition of the entire sanitary sewer system. To be able to better project where maintenance and repairs will need to be done. She asked Council if there is interest in pursuing this. She then asked what additional information Council would like to have. Councilmember Aotvet arrived at 8:11 P.M Councilmember Siakel stated she would like to be provided with more details. She also world like Director DeJong to provide some input about the use of Sewer Fund funds. She has a desire to look at the larger financial perspective. Councilmember Woodruff stated he would like Staff to prepare a sound cost benefit analysis of this proposal even if it is just compared to the current annual approach to sanitary sewer system televising. He CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES May 29, 2012 Page 11 of 17 then stated he would never approve a contract with anyone for a $380,000 hump -sum payment up -front for a three -year project without a performance guarantee and no recourse except suing the company providing the service. Mr. Loberg asked Council what additional information it needs from him Councilmember Woodruff stated he wants to know what RedZone's software license agreement is, what rights the City would have if RedZone no longer supports the product, what payment alternatives the City has (ones that do not include paying for services up front), what the performance guarantee is, whatever information staff needs, what the network and bandwidth requirements are, what a draft implementation plan looks like, and so forth. He noted that he thought the proposal submitted by RedZone is pretty good. He stated he thought the proposal is aimed at a city much larger than Shorewood. Yet, he thought it could have good applicability for the City. Interim Administrator/Director Brown suggested Staff prepare a financial analysis as well as a set of system benefits. Mr. Loberg thanked Council for the opportunity this evening. Mayor Lizde thanked Mr. Loberg for taking the time to be here this evening 10. GENERAL /NEW BUSINESS A. Aquatic Invasive Species Ordinance Director Nielsen explained that the City has been working with the Minnehaha Creek Watershed District (MCWD) and others to develop a program that would prevent, or at least slow down, the introduction of zebra mussels into Christmas Lake. The Minnesota Department of Natural Resources (DNR) has adopted rules that carry no penalty for someone who refuses a mandatory inspection for aquatic invasive species (AIS). The AIS Working Group developed a draft ordinance that provides for mandatory inspections and provides a penalty for violation of the State's rules. Failure to comply with a mandatory inspection would result in a misdemeanor penalty. A copy of a draft ordinance is included in the meeting packet. He noted the City cannot use its Administrative Enforcement process for doing this because the process addresses property issues. He stated the Working Group hopes that over time the DNR will impose its own penalties. The Committee has discussed more serious penalties. He clarified that Staff is not seeking approval of the draft ordinance this evening. The intent is to generate discussion and to present Council with a revised ordinance referring to the applicable State Statutes during its next Council meeting. Mayor Lizde stated she thought the draft ordinance is well written. It states what needs to said simply. She then stated the Working Group wanted to develop an ordinance that could serve as a model for the rest of the State. The ordinance will give the local policing authority the ability to enforce the ordinance. In response to a comment from Councilmember Zerby, Attorney Keane stated the specific number of the State Statute that addresses statutory citation referred to in the ordinance has been corrected. Keane noted that he will circulate the correct number to Council the next day. Zerby stated the ordinance refers to state waters and he asked if Christmas Lake is considered a state water. Keane responded it is. Councilmember Hotvet stated she thought it wise for there to be a consequence for not complying with the mandatory inspection. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES May 29, 2012 Page 12 of 17 Attorney Keane stated the MCWD will use the final version of the ordinance for other municipalities in the MCWD, provided Council wants to consider a final draft ordinance. Councilmember Zerby asked if the ordinance applies only to public accesses; not things such as marinas. Attorney Keane stated the DNR regulations apply to public points of access. Councilmember Siakel stated the only public access in the City is the one at Christmas Lake. Councilmember Woodruff asked Attorney Keane what the amount of the misdemeanor penalty is. Keane explained it is up to $1,000 or 90 days in jail. A citation would be issued through a licensed peace officer and enforced by the joint prosecutor. Woodruff asked if a DNR officer would be able to issue a citation under the ordinance. Keane explained any licensed peace officer can issue a citation. There was Council consensus to consider the final draft of the ordinance during its next meeting. Director Nielsen gave a report of what has been occurring at the Christmas Lake access. To date inspectors have not experienced any problems with boaters. There have been no reports of delays to those wanting to enter the Lake. The sign for the compost bin telling people that AIS compost and bait can be dumped in there will be installed no later than May 31, 2012. The explanation of how things will work will also be posted on the message board at the same time. Eventually the message board will display a list of inspection rules, but they have not come from the Minnesota Department of Natural Resources yet. A set of summary rules has been developed by the Working Group and those rules will reference the appropriate State Statute. The will also be posted by May 31 ". Mayor Lizee thanked Director Nielsen and others for making progress on this B. Strategic Planning Interim Administrator /Director Brown stated he met with Mayor Lizee and Councilmember Hotvet to discuss strategic planning and the next steps in the process for finalizing a strategic plan. He explained that in February 2011 Council and Staff participated in a strategic planning session facilitated by Sharon Klumpp, with Springsted Incorporated. There has not been much forward movement on the strategic planning initiative since then. The efforts attempted earlier this year have been deemed to be different than what Council would have liked. The meeting packet contains information assembled by Staff with input from Lizde and Hotvet. He noted that Hotvet shared information she had complied that could be used as a potential template for strategic planning. He stated a copy of that information is included in the meeting packet. Also included in the packet is information from the January 23, 2012, Council work session relating to the Strategic Plan. He stated that the Plan would eventually drive priority based budgeting. He then stated the City conducted a resident survey toward the later part of 2011 and the results of the survey should be considered when finalizing the Strategic Plan. Brown noted that Staff is asking for direction from Council in how to move forward with the strategic planning process. He stated if Council would like to consider using Ms. Klumpp again as a facilitator for this process she would not be available until mid - ,July. Councilmember Hotvet thanked Interim Administrator/Director Brown for his accurate recap of the meeting between Mayor Lizde, Brown and herself. She suggested Council and Staff formulate framework in order to come at the process with a common understanding of what the intent is. She stated she thought Council and Staff have done a good job of defining common goals and she suggested they be refined. They should feed into priority based budgeting. She stated she thought it should be a priority in the next few months as the City begins to finalize its approach to finding a new city administrator. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES May 29, 2012 Page 13 of 17 Councilmember Z,erby stated he likes the idea of bring Ms. Klumpp back to help moving forward with this initiative, noting he thought she did a good job the last time she was involved. Councilmember Siakel stated she thought Council and Staff had done some very good work relating to strategic planning. She indicated she agrees that there does need to be some 'framework. She then stated it is a timing issue. She thought it better to wait until the City has found an interim city administrator before focusing on the strategic planning initiative. Maybe that individual or Ms. Klumpp could help with that effort. She suggested waiting until August or September to do that. She noted she does think there is a need to resuming the strategic planning initiative. Councilmember Woodruff stated he thought there is a need for professional facilitation. He then stated that earlier in the day he, Councilmember Siakel and a few members of staff interviewed the first of four candidates for the interim administrator position. That individual had the credentials and experience to facilitate the effort and indicated that if he were selected one of his responsibilities would be doing the facilitation. The subcommittee is working toward bringing candidates before Council during the next ten days. I agreed with putting this discussion on hold until after Council has decided on an interim administrator. He suggested talking about this during Council's June 11, 2012, meeting. Mayor Liz& stated there appears to be Council consensus to resume the strategic planning initiative. She then stated it will be pursued around the August / September timeframe. She thanked hrterim Administrator /Director Brown for placing this topic on the meeting agenda. C. Financial Agreement for Finance of Equipment Lease/Purchase for Excelsior Fire District This item was removed from the consent agenda at Councilmember Woodruff's request Councilmember Woodruff stated he and Director DeJong have bad discussion and exchanged emails about this item. He noted that he does support Shorewood, given its very good financial situation, leveraging that to the benefit of the City and to the benefit of the community in general. He explained this evening Council is being asked to consider a proposal to finance a fire truck for the Excelsior Fire District (EFD) for an amount of $425,000 over a 5 -year period at an interest rate of 1.5 percent. After reading the proposal he researched the interest rate for five -year certificates of deposit (CDs) on very good, multi star institutions. His research indicated there were interest rates as high as 1.6 — 1.8 percent. He stated he thought the City should get somewhat close to what the rate that would be paid on a couple of 5 -year CDs. He thought the 1.5 percent rate is quite low. He suggested financing the lease /purchase of the truck at a rate of 1.75 percent. That rate would be more in line with what the City could earn if it were to invest those funds in another very secure, safe way. Woodruff noted the City did finance the purchase of self contained breathing apparatus for the EFD in 2011, and he stated he thought that was a good deal. He reminded the other members of the Council that there is a risk to the City by doing the financing. If the EFD, for whatever reason, decides that it is not going to appropriate funding in its budget to fund this lease /purchase over the 5 -year period the City would own a fire truck. Any money the City may have earned would be gone. The City would have to find out how to get rid of a fire truck. He stated this is a lease with a funding out clause. Lenders that do this externally build that in to their interest rates because they are taking a risk. Councilmember Zerby commented there is a bit of a wooden nickel scenario here. He noted that the City is paying approximately one half of this loan back, including financing charges. He explained the 1.5 percent interest would result in savings in excess of $35,000 in financing charges when compared to the EFD budget for the financing charges. He stated doing a quick calculation on a 5 -year loan at a rate of 1.5 CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES May 29, 2012 Page 14 of 17 percent the City will earn approximately $32,000 in interest. On top of that the savings from the lower financing charges will benefit the City. By the time the interest earnings and the City's benefit of the lower financing charges are combined the rate comes close to 1.8 percent. He noted that the City will in effect end up owning about one half of a fire truck independent of how it is financed. He stated that from his vantage point the City almost owns one half of the equipment the ETD already owns. He then stated he did not think there is much of a risk in financing the lease /purchase of the replacement fire truck. Councilmember Siakel asked Director DeJong how he came up with the 1.5 percent rate. She stated it is her understanding that the City is not earning 1.5 percent rate on its investments because the City has a very conservative investment policy. Director DeJong explained that are some brokered 5 -year CDs that earn the rates Councilmember Woodruff referred to. There is a 1.8 percent benchmark from the Wells Fargo stuff. The City has not invested in any CDs for that length of time or any other fixed -rate investments for that length of time. Investment options other than the brokered CDs are well below the 1.5 percent rate for 5 years. From his vantage point the 1.5 percent rate for a five -year period is a good rate. He commented that the 1.5 percent rate is a dart and he noted that he will take the blame or credit that comes from that rate. He stated he thought that is a reasonable assessment of where the City could go with its portfolio at this time. Councilmember Zerby stated it is his recollection that a one time there was an Investment Committee and that the Investment Policy was revised not all that long ago. Councilmember Woodruff was a member of that Committee. He thought the City is following the guidelines specified in the Policy. Director DeJong stated Council modified the Investment Policy a few years ago. The maximum investment period is generally out to five years unless the investment is matched with some specific debt service payment or obligation out farther than five years. He has not invested anything for the City at a long, fixed -rate term lately because in general investment interest rates are at historic lows. The risk of the rates going lower is very slim. The maximum investment period in the current portfolio is about three years out. He then stated the proposal for the EFD seems to be a win /win situation for both the City and the ETD. His intent was to identify a reasonable rate for the City and for the ETD. He noted that if Council chooses to raise the rate for the ETD he would be comfortable with that or with not doing the financing. He stated this is an opportunity for inter- agency cooperation, something the residents and the community support (as evidenced by the resident survey). Mayor Lizere stated she likes the idea of investing in the community. And, it helps the City. Site noted the Excelsior Tire Department, now the FED, has been in existence for over 100 years. She stated she doesn't think it is going anywhere. If the financing proposal could help with the EFD's budget in the long term it helps the City as well. She expressed her support for what has been presented in the proposal. Councilmember Hotvet expressed her support for the proposal as presented. She stared she thought it is creative and a great idea. Councilmember Woodruff clarified that he is not saying the City shouldn't finance the lease /purchase of the fire truck. He reiterated he thought the interest rate charged should be close to the market rate for certain five -year CDs. He stated the City has a duty to try and get the market rate available. He then stated the City is not in the business of subsidizing the other four ETD member cities. Although there would be a savings to the City, it is based on a subsidy to the other cities. He noted that he believes the 1.5 percent rate is okay for the assumptions in Director DeJong's statement, referring to Director DeJong's statement that DeJong has not done long -term investments for the City. He commented that if the interest rates go up over the five -year period the City will pay an opportunity cost of not having that money available for investment. He stated the number one objective in the Investment Policy is to preserve capital; don't CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES May 29, 2012 Page 15 of 17 sacrifice principal for interest rates. He then stated from his vantage point a 0.25 percent increase in the proposed rate would be appropriate. He noted that by doing that he could look residents in the eye and tell them the City earned the market rate for its investment. Councilmember Zerby expressed his disagreement with the Councilmember Woodruff's subsidizing comment. He stated the City would be making more than its current investments. There is no way the City is giving up any money. The investment would save the Shorewood taxpayers money and the taxpayers of the other four member cities money. Councilmember Woodruff stated maybe the interest rate should be lowered to 1.25 percent because the City can't earn 1.5 percent. Zerby moved, Hotvet seconded, accepting the terms of the lease - purchase agreement between the City of Shorewood and the Excelsior Fire District for a fire truck as presented and authorizing the execution of the agreement and payment for the equipment. Motion passed 4/1 with Woodruff dissenting. D. Redesignation of Administrator Working Group This item was removed from the consent agenda at Councilmember Woodruff's request Councilmember Woodruff expressed he was troubled by changing the name of the subcommittee for what he thought were the sole purposes of having to have open meetings, prepare minutes of the meetings, and post the meetings. He stated that sends a very bad message to the public, and therefore he thought it would be a bad idea. He did not think there had been any problems with the meetings that have been held to date. He recommended leaving the name alone. Attorney Keane explained it was an answer to a question that was asked of him by Woodruff. If a committee is created by the Council it is required to conform to the open meeting requirements. Minnesota Statutes Chapter 13 regarding the open meeting law clearly states when it is a committee or subcommittee of the governing body they shall be subject to the requirements of the open meeting law. This group is not a quorum of the Council. It is a working group. If Council wants the working group to conduct all of its business in compliance with the requirements of the open meeting law, that is fine. If candidates don't mind participating on that basis, that is fine as well. He clarified the question posed to him was not about avoidance. The characterization of the title of the group brought it within the definition of the requirements of the Statute. If at the first instance the group had been called anything other than a committee or subcommittee it would not have triggered this. Councilmember Woodruff asked what other reason there would be to change the name if not avoidance. Attorney Keane stated Council can call it what it wants. But, if it is called a committee or subcommittee the group has to conform to the requirements of the open meeting law. If it is called something else the group is not bound by that. Councilmember Woodruff noted that he knew the answer to the question before he asked it. Attorney Keane responded he figured Woodruff did. Woodruff stated he thought the process should be open. Minutes should be taken, meeting notices should be posted. If the public decides they want to attend that should be allowed. From his vantage point a name change is not necessary in that context. He then stated if there is a desire to change the name then there must be another reason from his perspective. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES May 29, 2012 Page 16 of 17 Councilmember Siakel stated it is her recollection that Councilmember Woodruff prompted the question and this action. Woodruff stated he did not ask for a name change. He just asked the question so others could be educated about the responsibilities of the group when it was designated as a subcommittee. Councilmember Zerby asked Councilmember Woodruff if he thought there is a difference between this committee and other committees he has been on. Zerby stated Woodruff and he served on the Southshore Community Center committee and Woodruff had served on the Investment Committee. Woodruff sated for the Investment Committee meetings the meetings were posted and minutes were taken. Zerby stated there is nothing on the City's website. Interim Administrator /Director Brown stated when this was debated among staff members a couple of things arose. If the group is labeled a subcommittee or committee of the Council it could lead people to assume it is made up of members of the Council only. Calling it something else would not create that assumption. He noted there is no desire to avoid posting meetings of the group. If Council wants the meetings posted then they will be posted. He suggested Council take into consideration that when the group starts to seek candidates for the full -time city administrator position and possibly the interim position that data becomes public. The City could potentially lose some viable candidates because they may not want that information known at that time because it could put them at risk. Mayor Lizee stated that because the group is a mixture of members of Council and staff, she would like to have the name changed to the recommended City Administrator Working Croup. Engineer Landini, a member of the group, made a plea for Council to take into consideration the extra work to prepare the meeting minutes. Staff already has a full work load. Councilmember Siakel expressed concern that if is subject to the open meeting law the information about the candidates cannot be kept private. Councihnember Zerby stated the group will report back to Council and that is where the transparency will be. The names can be distinguished by using a generic reference such as candidate 1 or 2. Zerby moved, Hotvet seconded, accepting the recommendation from Staff that the group be redesignated as the "City Administrator Working Group ". Motion passed 4/1 with Woodruff dissenting. 11. OLD BUSINESS None. 12. STAFF AND COUNCIL REPORTS A. Administrator and Staff 1. Spring Clean -Up Report Interim Administrator /Director Brown stated he did not have the statistics from the spring clean -up event. The event was well attended. The City received very favorable comments about the opportunity to bring materials for shredding. Deputy Clerk Panchyshyn stated the City collected 8000 pounds for shredding. 2. Monthly Financial Report CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES May 29, 2012 Page 17 of 17 Director DeJong stated the meeting packet contains a copy of the April 2012 Monthly Budget Report. He noted the budget is about where it is expected to be at this point in the year. B. Mayor and City Council Councilmember Siakel stated the City Administrator Working Group met after the last City Council meeting to discuss the process the Group will use to conduct the search for an interim city administrator and to agree upon the format. The Group identified how to go about identifying candidates. It requested resumes and identified the timeline for conducting the interviews. The Group has identified four candidates. One candidate was interviewed earlier in the day. The others will be interviewed by June 4. The expectation is the Group will be able to narrow it down to two candidates and then a special session of the Council can be called to interview them. She noted that Deputy Clerk Panchyshyn and Engineer Landini, two members of the Group, have been very helpful in this process. Cormcilmember Zerby and Mayor Liz& thanked the Group for the great job it is doing. Councilmember Zerby stated he attended a meeting of the Excelsior Fire District Board on May 23, 2012. The Board approved the purchase of a new fire truck. Mayor Lizee thanked the members of staff for their efforts with regard to the spring clean -up event 13. ADJOURN Woodruff moved, Zerby seconded, Adjourning the City Council Regular Meeting of May 29, 2012, at 9 :01 P.M. Motion passed 510. RESPECTFULLY SUBMITTED Christine Freeman, Recorder ATTEST: Christine Liz&, Mayor Brown, Interim City Administrator /Clerk