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08-27-12 CC Reg Mtg MinCITY OF SHOREWOOD CITY COUNCIL REGULAR MEETING MONDAY, AUGUST 27, 2012 MINUTES 1. CONVENE CITY COUNCIL REGULAR MEETING 5755 COUNTRY CLUB ROAD COUNCIL CHAMBERS 7:00 P.M. Mayor Lizee called the meeting to order at 7:00 P.M. A. Roll Call Present. Mayor Lizee; Councilmembers Hotvet, Siakel, Woodruff and Zerby; Attorney Keane; Finance Director De7ong; Planning Director Nielsen; and Engineer Landini Absent: None. B. Review Agenda Zerby moved, Woodruff seconded, approving the agenda as presented. Motion passed 510. 2. APPROVAL OF MINUTES A. City Council Work Session Minutes, August 13, 2012 Woodruff moved, Siakel seconded, Approving the City Council Work Session Minutes of August 13, 2012, as presented. Motion passed 510. B. City Council Regular Meeting Minutes, August 13, 2012 Zerby moved, Woodruff seconded, Approving the City Council Regular Meeting Minutes of August 13, 2012, as presented. Motion passed 5/0. 3. CONSENT AGENDA Mayor Lizee reviewed the items on the Consent Agenda. Zerby moved, Woodruff seconded, Approving the Motions Contained on the Consent Agenda and Adopting the Resolutions Therein. A. Approval of the Verified Claims List B. Vatleywood Lane and Valleywood Circle Street Reconstruction (This was moved to Item I O.0 under General/New Business.) C. Authorize Expenditure of Funds for a Public Works Tailgate Sander D. Adopting RESOLUTION NO. 12 -052 "A Resolution Authorizing the Expenditure of Funds for Picnic Tables.' CITY OF SIIOREWOOD REGULAR COUNCIL MEETING MINUTES August 27, 2012 Page 2 of 15 Motion passed 5/0. 4. MATTERS FROM THE FLOOR There were no matters from the floor presented this evening. 5. PUBLIC BEARING None. 6. REPORTS AND PRESENTATIONS A. 2011 Audit Presentation by Brad Falteysek, Abdo, Eick and Meyers, LLP Mayor Liz6e explained a draft copy of the City of Shorewood's 2011 Comprehensive Annual Financial Report (CAFR) had been prepared. Mr. Brad Falteysek, with the independent CPA firm of Abdo, Eick & Meyers, LLP, is present to highlight the findings. Mr. Falteysek stated he was filling in for Andy Berg, the person in charge of the City's audit, this evening. He noted that he has been with his firm for 13 years. He stated the meeting packet contains a copy of the draft CAFR as well as a Management Letter, noting he will focus on the management letter. He noted the firm will be issuing a "clean" opinion on the financial statements once the audit is finalized. Mr. Falteysek explained during the audit his firm goes through the City's internal controls to determine whether or not there is anything that is a higher risk area and if there is the auditors concentrate on more testing in those areas. He noted they are not hired to give an opinion on the controls as part of the audit. But, if they find something they think should be brought to people's attention it will do so in the Management Letter. He stated they found one finding during the audit. They are reporting a material weakness related to cash and investment reconciliations. When they came in to perform the audit a lot of the reconciliations for 2011 had not been done. They also made some year -end accounts payable entries. The auditor recommends the City Administrator review the reconciliations for completeness and irregularities monthly. Management agrees with that and the City has hired KDV to work with Staff on reviewing and developing procedures to do that. Mr. Faheysek noted the City did adopt Governmental Accounting Standards Board (GASB) Statement 54 during 2011. He explained the equity section of the Fund Financial Statements is different when compared to 2010. In 2010 the Balance Sheet showed unreserved and reserved fund balances, and under unreserved there were designated and undesignated fund balances. For 2011 there are nonspendable, restricted, assigned, committed and unassigned portions. The purpose of GASH 54 was to give people a better understanding of what the funds are to be used for. Mr. Falteysek stated his firm typically recommends a General Fund balance as a percentage of expenditures of 50 percent to satisfy cash flow needs. Because the City receives its tax payments in June and December of each year it needs enough reserves to pay for expenses for one half of the year. The City's reserve level was 67 percent at the end of 2011; the same level as at the end of 2010. The peer group average for the fund balance as a percent of expenditures for approximately 120 fourth class cities (populations from 2,500 — 10,000) throughout the State in 2009 and 2010 was 63 percent and 67 percent respectively. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES August 27, 2012 Page 3 of 15 Mr. Falteysek explained revenues were over budget by approximately $165,000. Approximately $90,000 was due to recognition of escrow amounts recognized as revenue. Also, license and permits revenues were higher than budgeted by approximately $75,000. Expenditures on an approximate $4 million budget were over budget by approximately $22,400. In 2007 the City received approximately 80 percent of its revenues in taxes; in 2011 it was 90 percent. In 2007 the City received approximately $258,000 in investment income; in 2011 it was approximately $20,000. Mr. Falteysek then explained the majority of the City's expenditures are in general government and public safety with them being 24.5 percent and 27.4 percent respectively of the total expenditures and transfers out; in 2007 those two categories were both at 26 percent. Expenditures have been fairly consistent over the last five years. Public works expenditures were 15 percent in 2007 and 16.3 percent in 2011. The City's per capita spending for general government was $179; it was $123 for the peer group. The City's public safety per capita spending for public safety was $200; it was $204 for the peer group. The City's per capita spending for public works was $119; it was $108 for the peer group. The City's per capita for transfers out to fund capital funds was $127; there are not enough cities doing that in the peer group to have a comparison. He noted it is a good financial practice to set money aside for future capital projects. With regard to Debt Service Funds, Mr. Falteysek stated the City has four debt service funds and they are all related to leases. He recommended the City continue to monitor these funds to make sure the future cash flow will be sufficient to cover the bonded liabilities. With regard to Special Revenue Funds, Mr. Falteysek stated the City has only one special revenue fund; the Southshore Community Center Fund. At the end of 2011 the Fund had a fund balance of approximately $6,600 and a cash balance of approximately $13,200. The fund balance increased approximately $24,300 when compared to 2010 due to a transfer in of approximately $48,600 from the General Fund. With regard to Capital Projects Funds, Mr. Falteysek stated they all have a very healthy balance. He suggested the City have a capital improvement plan in place that is updated annually and that it ensure there will have sufficient cash flow to fund future capital needs. Mr. Falteysek highlighted the Enterprise Funds (water, sewer, recycling, and storm water management). The Water Fund 2011 year -end cash balance was over $3.8 million. There was an operating loss of approximately $62,000 in 2011 and there was an approximate loss of $50,000 in 2010. In spite of the losses the cash balance continues to increase. Operating expenses include depreciation on assets (a non- cash expense) of approximately $273,600 in 2011. The Sewer Fund has had operating loss of approximately $333,300 in 2011. It includes depreciation on assets of approximately $214,000. There were operating losses of approximately $154,000 and $139,800 in 2009 and 2010 respectively. The Fund had a cash balance of approximately $3.5 million at the end of 2011 which amounts to about two to three years of reserves. The Recycling Fund had an operating loss of just under $23,000 in 2011, and the year- end cash balance was approximately $53,000. 2011 was the only year where there was an operating loss (approximately $37,000) in the Stormwater Management Utility Fund. The year -end cash balance was approximately $214,000; almost a year's worth of reserves. The 2010 year -end cash balance was approximately $666,000. The decrease in the cash balance was largely due to the acquisition of capital assets in 2011. He recommended the City monitor these enterprise operations to ensure rates are sufficient to cover operating expenses, debt service, and future capital needs for the enterprise operations. Mr. Falteysek reviewed the ratio analysis comparing some of the City's financial ratios to peer group ratios. The City's debt -to- assets ratio (for the City's assets this measures how much is owed for them) is 30 percent; the 2010 peer group's was 34 percent. The City's debt - service - coverage ratio is 91 percent; CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES August 27, 2012 Page 4 of 15 the 2010 peer group's was 90 percent. A ratio of 100% or more indicates the City was generating enough cash to cover its debt service expenses. The debt - per - capita ratio (the total outstanding debt broken down by resident) is $1,758; the 2010 peer group's was $2,774. The City's taxes -per- capita ratio is $648; the 2010 peer group's was $458. A main reason for the City being so much above its peer group is because of the transfers it makes to set money aside for future capital projects. It's prudent not to go too much above $650. The City's capital- expenditures- per - capita ratio is $544; the 2010 peer group's was $624. The City's taxes- per - capita ratio is $199; the 2010 peer group's was $265. That ratio fluctuates based on what capital projects were done during the year. The City's government - capital- assets -to- depreciate ratio is 29 percent; the 2010 peer group's was 68 percent. The City's business - type - capital- assets -to- depreciate ratio is 46 percent; the 2010 peer group's was 68 percent. The assets -to- depreciate ratios indicate how old the assets on average are. If the ratio is at 50 percent it would mean the assets are halfway through their life. Mr. Falteysek stated there will be two new GASH statements (60 and 61) coming out and his firm is researching what impact they will have on how municipalities' financial statements are reported. Mayor Liz6e thanked Mr. Falteysek for his presentation. Mr. Falteysek stated he will make a few minor changes to the CAFR. Woodruff moved, Siakel seconded, Accepting the 2011 Comprehensive Annual Financial Report (CAFR). Motion passed 510. 7. PARKS A. Report on the August 15, 2012, Park Commission Meeting Commissioner Gordon reported on matters considered and actions taken at the August 15, 2012, Park Commission meeting (as detailed in the minutes of that meeting). Mayor Lizee stated based on what she reads in the minutes of the Park Commission's meetings it appears the Commission is very active. She expressed her appreciation to the Commission for engaging with residents. She acknowledged that Mr. and Mrs. Babcock are great stewards of Manor Park, as Commissioner Gordon had referred to. B. Gideon Glen — Park Commission Responsibility Director Nielsen stated the Park Commission feels the conservation open space at Gideon Glen should come under the purview of the Commission. If that were to happen over time there would be budgeting and maintenance responsibilities. The simplest way to make the Commission responsible is to approve a simple amendment to the City's Comprehensive Plan (Comp Plan) in the area where it talks about conservation open spaces. If Council agrees with making the change it should direct the Planning Commission to hold a public hearing on the amendment and inform them that Council supports assigning responsibility to the Park Commission. Council would then consider an ordinance amendment at a future meeting. Councilmember Zerby expressed concern about the lack of parking at Gideon Glen. He asked if there are any complications with the Minnehaha Creek Watershed District (MCWD) because the MCWD and the City partnered on Gideon Glen. Director Nielsen stated he needs to review the agreement between the City and the MCWD to see what if any restrictions it includes for parking. Nielsen explained when the Smithtown Crossing Redevelopment Study was first started that parking issue came up. There was CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES August 27, 2012 Page 5 of 15 discussion about incorporating parking as part of a future redevelopment or approaching private landowners to see if some parking could be acquired. Zerby moved, Woodruff seconding, directing Staff to draft a text amendment to the Comprehensive Plan that would put the conservation open space at Gideon Glen under the purview of the Park Commission and directing the Planning Commission to hold a public hearing on the text amendment. Motion passed 510. 8. PLANNING A. Zoning Code Amendment — Accessory Apartments Director Nielsen explained that over the last couple of years the Planning Commission has been discussing various aspects of life -cycle housing. When the Commission discussed senior housing a number of years ago one of the things that became apparent was seniors want to continue to live in the community and stay in their homes as long as they can. He noted that earlier this year Council approved an Ordinance that would allow for handicapped access ramps and so forth. Nielsen then explained that the Commission thought it would be a good idea to allow accessory apartments in a residential zoning district. It has been the City's policy to allow only one dwelling on a lot for a very long time. Allowing accessory apartments is intended to allow children to move in with their parents for a time and to allow parents to move in with their adult children in their own accessory apartment. Nielsen went on to explain the draft ordinance to allow accessory apartments in single- family residential zoning districts would establish standards for doing so. He noted that one of the standards is only family members can occupy the apartments. He stated this has been allowed on the east coast for quite some time. Staff pulled information from a number ordinances that allow these apartments and he structured the ordinance to fit the City. The Planning Commission recommended changes to the first draft of the ordinance related to the size of the accessory apartment and to parking. Those changes have been incorporated into the draft ordinance before Council for consideration. Nielsen noted that the ordinance states "Occupancy of the accessory apartment shall be limited to persons related by blood or marriage to the owner of the residence." He stated that provision was not intended to preclude any family situation. Unfortunately, it does. After speaking with Attorney Keane, Staff is suggesting it be changed to read "... persons related by blood, marriage or adoption to the owner ... ". That change will be made in two places. Nielsen also noted accessory apartments are a conditional use permit (C.U.P.) and the C.U.P. process requires a public hearing to be held. He explained there is a provision in this ordinance that requires the owner of the single - family residence to enter into a Residential Use Agreement with the City that would be recorded against the property stipulating the house will not be sold as a rental unit. Nielsen stated the Planning Commission has held a public hearing on accessory apartments and unanimously recommended approval of the Ordinance. Mayor Lizee thanked the Planning Commission for all of the energy it put into studying fife -cycle housing and to moving accessory apartments forward. She stated demographics indicate the City's population is aging. She asked Councilmember Hotvet to comment on this noting that Hotvet was the liaison to the Commission during some of its discussions about this. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES August 27, 2012 Page 6 of 15 Councilmember Hotvet stated that a there had been a lot of study and conversation that went into the Planning Commission's recommendation to allow accessory apartments. She expressed her support for it. She asked Director Nielsen if members of the City's Planning Department will need any type of special training for accessory apartments. Nielsen explained the aspects of it are in the Building Code and there is already that capability with the Building Official. Nielsen noted the City already has a Residential Use Agreement for people who have larger homes and want to install a second kitchen in it. Councilmember Woodruff asked if all of the setback and hardcover requirements would apply. Director Nielsen stated they would. Woodruff then asked where the line should be drawn when it comes to a blood relationship. Nielsen explained that provision came from the Building Code and it does not specify how far down the blood line can go. That is also part of the Uniform Building Code. Woodruff stated if the Ordinance is approved with the proposed amendment it would allow anyone in the blood line to live in the apartment. Councilmember Siakel stated any problem could be addressed during the C.U.P. process. In response to a question from Councilmember Woodruff, Director Nielsen explained the Ordinance stipulates the property with the accessory apartment must provide a total three off - street parking spaces with two of them being enclosed. Woodruff suggested the parking provision be clarified to state the entire property must have three off - street parking spaces. Councilmember Zerby stated he is in favor of this. He noted that he was the liaison to the Planning Commission when this was last discussed by the Commission. He stated he is pleased adoption is being added to the ordinance, and noted that he had previously expressed concern about not allowing for blended families. Director Nielsen suggested Staff make the changes to the Ordinance and then place it on a Council meeting agenda as a consent agenda item. Zerhy moved, Hotvet seconded, directing Staff to make the modifications just discussed (adding adoption and clarifying parking requirements) to the draft Ordinance and to have the revised Ordinance placed on a future Council meeting agenda as a consent agenda. Motion passed 510. B. Ashland Woods Preliminary Plat Director Nielsen explained that Ashland Woods LLC has submitted a preliminary plat for a seven -lot subdivision to be called Ashland Woods. The property is located on the south side of the LRT trail and the east side of Strawberry Lane. The plat was approved in 2009 under the name of Wildwood. The property is zoned Rl -C, Single - Family Residential. The plat submitted by Ashland Woods is virtually identical to the one submitted by Wildwood, with the exception of the proposed grading plan which Staff thinks is an improvement. Because of that Staff used the same staff reports and the same recommendations as it did for Wildwood plat. The old house on the property had been demolished when it was Wildwood. Nielsen then explained Ashland Woods LLC focuses on home building. Because of that it has paid more attention to the types of houses that would fit on the lots. As result it was able to reduce the amount of fill that will be needed to 16,000 cubic yards (10,000 for primary plat grading and 6000 for individual site grading). The reason so much fill is needed is the site is very flat. He noted that for the Wildwood plat 23,000 yards of fill was proposed and the proposed houses were much larger. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES August 27, 2012 Page 7 of 15 Nielsen went on to explain the single, most significant issue with this site is drainage because the area is very flat and the drainage subtle. The proposed drainage solution for the area is to bring the drainage off of the street and the lots, for the most part, to the north around the edge of the plat to a holding pond in the northeast corner of the project area outletting it into a drainage way in Freeman Park which will conduct it on into a significant outflow structure. The objective is to not have an effect on any neighboring properties regarding drainage. The area where the lots drain and the water is being conducted will be a system of rain gardens. The neighbors want assurance that the drainage way will be maintained over the years to ensure it is not being filled in by sediment or people dumping things into it. Because the drainage is so subtle it cannot tolerate any change in elevation. With the Wildwood Plat Staff had recommended there be a provision in the Declaration of Covenants that gets recorded against the plat that a homeowner's association (HOA) be established and that it is responsible for ensuring the drainage way would be maintained over time. The standard that was to be imposed is that the HOA would take photographs of the drainage way annually so Staff could determine if it was being filled in. If the elevation in the drainage way reaches a height higher than it is supposed to be the IIOA would be responsible for cleaning it out. If the HOA fails to clean it out the City would have the authority to clean it out and assess the cost back to the development. If it weren't for the drainage concern the development would probably not have an association. Staff continues to recommend this same thing for the Ashland Woods development. The Declaration of Covenants with those provisions in there will be submitted with the final plat. Nielsen stated that ordinarily the Planning Commission does not see the final plat. For the Wildwood plat the Commission asked to have the opportunity to see the documents for the final plat. It has requested the opportunity to do that for the Ashland Woods final plat as well. Nielsen noted that Staff and the Planning Commission recommend the approval of the preliminary plat for Ashland Woods with the same conditions applied that were recommended for the Wildwood plat in 2009. Corry Lepper with Vine Hill Partners (VHP) located in Deephaven stated VHP is not selling Lots it is building houses. One of its goals on the front end is to minimize the impact on the site. It also wants to create a different sense of community and neighborhood. Couneilmember Woodruff suggested Council consider a policy requiring new developments to provide City water to the property when waternain is available. Director Nielsen stated the City already has that exact policy, Nielsen explained that for a development project for three or more lots City water must be provided where it is feasible (with feasible being the cost to do that is less than $10,000 per lot). The previous developer had determined water could be provided for less than $10,000. Therefore, it would be required for Ashland Woods. Couneilmember Zerby stated that during the Planning Commission's August 7, 2012, meeting when this preliminary plat was discussed there was a lot of discussion about trees in the southeast corner of the development. During the meeting there was a recommendation to require saw cutting some of the larger trees to try and preserve them. He noted he doesn't see any documentation about requiring that. Director Nielsen explained for this meeting Staff recommends Council direct it to prepare a resolution approving the preliminary plat and the requirement to saw cut trees will be noted in there. Zerby then stated during a discussion about the Wildwood plat a concern was expressed about residents receiving reduced electrical power at times in the area. They had been told the transformer servicing the area did not have enough capacity to fulfill the demands of air conditioners as well as all of the other CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES August 27, 2012 Page 8 of 15 demands. At that time Director Nielsen indicated he would contact Xcel Energy about that issue. Nielsen stated he did not remember that. Nielsen noted that Xcel Energy has proposed a power fine upgrade, and that it is not just this area that has a problem. Zerby noted there will be seven new houses drawing on that power source. Zerby stated he did not need an answer this evening. Nielsen commented that concern was not raised during the Ashland Woods discussion. In response to a comment from Councihmember Siakel, Engineer Landini stated City water will be provided as part of this development and noted it is on the utility plan. Councilmember Hotvet noted she Lives across the street from the proposed development and stated she is pleased to know the area will be developed. Mayor Lizee stated she is pleased that much less fill will be needed for Ashland Woods then what was proposed for Wildwood. She then stated the drainage plan is great and she likes the use of rain gardens as part of the drainage system. She went on to state she is pleased there will be covenants. She asked if monuments would be helpful to demark things. Director Nielsen noted the wetland monuments the City uses are flush with the ground so they end up buried. Nielsen explained the dry creek bed as part of the drainage system will serve as a very specific demarcation. Mayor Liz6e suggested VHP contact the Minnehaha Creek Watershed District (MCWD) because the MCWD has a cost share program available to neighborhoods, homeowners and groups to help people develop, design and plant rain gardens. The MCWD and the City have been successful in utilizing Metro Blooms to help design and put together rain gardens. Zerby moved, Ilotvet seconded, directing Staff to prepare a resolution approving the Ashland Woods preliminary plat subject to the recommendations made by the Planning Commission. Motion passed 510. 9. ENGINEERING /PUBLIC WORKS A. Water Extension Petition for 26005 Smithtown Lane Engineer Landini explained in August the City received a petition to extend municipal water service to 26005 Smithtown Lane. Watermain currently comes down the rail trail next to this property and makes a hard turn into Freeman Park. Dustin Maddy, the owner of the property, is asking for a dead end watermain extension. He noted he discussed this with Public Works Director Brown and Brown recommended against extending City watermain. An alternative has been suggested and that is to install a long service so the water does not remain stagnant in the water extension along with a requirement to enter into with an agreement with the City that would be recorded against the property to require connecting to watermain when it is extended. Landini noted Staff recommends accepting the petition, directing Staff to work with the petitioner for a water service and having the City enter into an agreement that will be recorded against the property requiring the property to be connected to watermain if it is extended. Mr. Maddy stated he has been a resident in the City for one year, and noted that he would like to have access to clean water. It is his understanding that the well on his property had been abandoned. He receives his water from his neighbors well. He noted that he would value the primary and secondary protection though the watermain pipes. He stated there have three documented petroleum spills within CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINU'T'ES August 27, 2012 Page 9 of 15 one third of a mile of his house. Railroad operations are notorious for pollution. He noted he wants safe drinking water for his family and himself. Councilmember Woodruff stated he is straggling with understanding Staffs recommendation to install a longer service and record an agreement against the property. Engineer Landini explained the long service would not have to be flushed out every two months to get the iron bacteria out. Stagnant water would sit in the extension for 200 feet. It would be similar to the extension at City JIall. There is one customer at City Hall. There is a dead end extension. The hot water heater grows iron bacteria. Although the water passes all of the water quality tests it does not smell very good. In response to a question from Councilmember Woodruff, Engineer Landim explained Mr. Maddy petitioned the City and the City has an obligation to accept or deny the petition. Landini stated he is recommending Council accept the petition but not act on it, and direct Staff to work with the petitioner to get service for his property. The service would have to be connected at the same location that watermain would be extended from. In response to a comment from Councilmember Siakel, Engineer Landini explained the requested watermain extension would be a dead end. There would not be a loop or any other customers drawing from it. It would be a minimum of a six -inch pipe. The one -inch service to Mr. Maddy's home would not generate enough movement of water through the pipe to knock out any rust or other items in the water. If the extension were done, a fire hydrant would have to be installed at the end. At City Hall it's necessary to flush the fire hydrant about every two months in order to keep the iron bacteria order coming through the water system. Zerby moved, Woodruff seconded, accepting the petition to extend municipal water service to 26005 Smithtown Road and directing Staff to work with the petitioner for water service and to record an agreement against the property to connect to watermain when it is extended. Motion passed 510. 10. GENERALINEW BUSINESS A. Adoption of the Preliminary 2013 General Fund Operating Budget and Tax Levy Director DeJong stated the meeting packet contains a copy of the preliminary 2013 General Fund Budget. The only change in the Budget from when it was last discussed during Council's August 13, 2012, work session is an increase of $10,475 to raise the proposed salary increase from 1 percent to 2 percent. The tax levy is the same as for 2012. He noted Staff is recommending adoption of the Budget [$5,359,518] and tax levy [$4,763,319] as presented. Woodruff moved, Zerby seconded, Adopting RESOLUTION NO. 12 -053 "A Resolution Adopting the Preliminary 2013 General Fund Operating Budget and Property Tax Levy as presented." Motion passed 510. B. Selection of the Truth -in- Taxation hearing Date Director DeJong stated the meeting packet includes a resolution setting December 3, 2012, as the date for the Truth -in- Taxation hearing date with a follow -up hearing, if needed, and budget adoption at the December 10, 2012, Council meeting. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES August 27, 2012 Page 10 of 15 Zerby moved, Woodruff seconded, Adopting RESOLUTION NO. 12 -054 "A Resolution Selecting the Truth -In- Taxation Public Hearing Date." Motion passed 5/0. C. Valleywood Lane and Valleywood Circle Street Reconstruction This was removed from the consent agenda at Councilmember Woodruff s request. Councilmember Woodruff stated he supports the fourth recommendation provided by Staff with regard to the street rehabilitation of Valleywood Lane and Valleywood Circle. He expressed concern that one of the next steps is to hold a public information meeting on September 5"'. That is after a holiday weekend and many residents are not around this week. He stated he did not think residents would be given enough notice for that meeting. Therefore, he suggested scheduling the meeting the week of September 10` or later. Engineer Landini stated Staff will have to check its schedule to determine an alternative date. Woodruff stated he anticipates people will say they did not know about the meeting if it is held on September 5`" and that could result in the City setting itself up for an unnecessary confrontation. Woodruff moved, Hotvet seconded, directing Staff to conduct a feasibility study of Valleywood Lane and Valleywood Circle with the assistance of TKDA, obtain geotechnical information from AET and a sanitary inspection from Infratech, and schedule a public information meeting no earlier than the week of September 10, 2012. Councilmember Hotvet asked if the feasibility study will provide Council with the information needed to make a decision about extending watermain as part of the project. Engineer Landini responded it will. Mayor Lizde stated she will vote against delaying the September 5 "' date for the public information meeting, noting there is an overall schedule that has to be met. She noted that Valleywood Lane and Valleywood Circle have been scheduled for rehabilitation for a number of years. She stated there have been residents who live along those roadways that have contacted the City during the past five years asking when City water will be made available to them as part of the roadways being rehabilitated. She asked Staff if extending the date for the meeting will negatively impact the schedule. She stated she is fine with the September 5 date. Engineer Landini stated that first meeting is just an introductory meeting for the residents. There will be many opportunities for residents to provide input. He noted that at least two public meetings will be held about this project if watermain extension is included. Councilmember Zerby asked Engineer Landini if changing the date to the week of September 10 "' negatively impacts the schedule. Landini responded it does not. Engineer Landini explained the City's standard is for a 24 -foot wide roadway surface with edge control on the side of that. The intent is to propose watermain. Staff will have to find out if the residents owners want edge control because these roads have a different type of situation. Councilmember Woodruff stated scheduling the information meeting for a little bit later would give Staff the opportunity to receive more input from the residents. He then stated new people may have moved into the neighborhood over the last three to four years and they may not be aware of the City's plan. He noted the engineering work can continue as scheduled. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES August 27, 2012 Page 11 of 15 Councilmember Siakel stated there are not very many properties in that area so it should not be difficult to communicate with the residents. She commented if the residents are taken off -guard by this project the City has not done a very good job of communicating to date. She asked if they are aware of the upcoming rehabilitation of these two roadways. Engineer Landini stated he knows that one vocal resident is aware and he has asked her if she has spoken to her neighbors about it. Engineer Landini stated there is no problem with changing the September 5 "' date to a later date, noting he has to check his availability and the availability of a meeting room. Motion passed 4/1 with Liz& dissenting. 11. OLD BUSINESS A. Social Host Ordinance Mayor Lizee stated Council discussed a social host ordinance at length during its August 13, 2012, and July 23, 2012, meetings. She noted the meeting packet contains a copy of such an ordinance for Council's consideration this evening. She also noted that Council had been provided with a great deal of information about social host ordinances for those previous meetings and the meeting minutes for those meetings reflect Council's discussions. The question before Council is whether or not the City should adopt a social host ordinance. Councilmember Siakel stated having the opportunity to support the South Lake Minnetonka Police Department (SLMPD) and the Minnetonka School District are important when considering an ordinance. But, she thought there are other things that should also be considered. She expressed concern that the penalty for violating this type of ordinance would be a misdemeanor which can carry a financial penalty and it could potential result in spending time in jail. Siakel asked Attorney Keane what discretion the City Prosecutor has when it comes to prosecuting someone for violating the ordinance. Attorney Keane explained the City Prosecutor would have the broad, customary discretion given him with charging responsibilities. He noted that the maximum charge is a misdemeanor, and also that speeding 10 miles over the speed limit is a misdemeanor. He explained the severity of the penalty is determined by the Court upon conviction. That would be the recommendation of the City Prosecutor. If there was a violation, the police present the facts and evidence to the City Prosecutor and the Prosecutor has the discretion to determine the charges. Councilmember Siakel stated the City of Chaska adopted a social host ordinance some time ago. She asked how many times an individual has been prosecuted for violating the ordinance. She questioned how widely this type of ordinance would be used. Attorney Keane stated he can find that out through the city attorney offices for cities around the City that have adopted this type of ordinance. Siakel then stated the proposed ordinance goes after the person hosting the gathering where underage drinking is occurring. There already is legislation around social host regarding the criminal aspect of when someone leaves and event and something bad happens. She asked Attorney Keane to explain the difference. Keane stated for criminality to rest in charge there would have to be knowledge of underage drinking. For example if people were out of town and someone hosts a party where there is underage drinking in their home unbeknown to them they would not be criminally liable. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES August 27, 2012 Page 12 of 15 Siakel presented a scenario where the parents were home but are unaware there is underage drinking going on. She asked what would happen in that case. Attorney Keane explained that is where the facts and the evidence come into play along. The City Prosecutor would have to evaluate the evidence and make a determination if there was sufficient proximity of facts to the law to establish a basis for a charge. Siakel clarified in no way does she condone or think it appropriate for an adult to provide alcohol to an underage person. Attorney Keane noted that is a separate violation. She presented a scenario where a 23 year old gives alcohol to a sibling who is not 21 years old but they are not aware of this ordinance. Yet, a misdemeanor charge could follow them into adulthood. She noted she does not want to be overly punitive. Attorney Keane asked Councilmember Siakel if she would like him to gather information about what other cities have done with this. Mayor Liz& cited an excerpt from the minutes of the August 13"' Council meeting which states "Councilmember Zerby stated it is his understanding that the ordinance would only apply to people that had knowledge of the underage drinking. ChiefZitsey stated that is correct and noted it applies also it'it should be apparent." She stated that since 2007 social host ordinances have been adopted by 83 cities and 19 counties. She noted that between January 1, 2011, and August 13, 2012, 98 citations in the South Lake area have been issued for underage drinking. Of those 63 were for people age 18 — 20 and 35 were for people under 18 years of age. She stated SLMPD Chief Litsey had indicated that often where there is underage drinking taking place there are thefts, sexual assaults and an increase drinking and driving. Liz& stated she thought it imperative for Council to take this seriously and work with school districts and other communities to let it be known that providing alcohol to minors is not acceptable. An ordinance gives parents of minors an additional tool to be able to say no. No, it is not okay that you are drinking even though you are at home. She noted that she strongly supports adopting a social host ordinance. Councilmember Hotvet noted she agrees with Mayor Lizee's stance on this. She stated since the last Council meeting when this was discussed she has received feedback from people about Council taking a leadership role and its willingness to create partnerships. She then stated she views the ordinance as more of an educational tool. She went on to state she does think is it wrong for a 23 year old to give alcohol to the minor sibling because a 23 year old is a legal adult. She recommends moving forward with the ordinance and demonstrating Council's support for it. Councilmember Siakel stated if a person is charged she asked if the City has input into how that person is charged. Attorney Keane stated the City does not. The City Prosecutor makes that determination based on their evaluation of the evidence. Councilmember Woodruff noted there is already a state law that makes it illegal for an adult to provide alcohol to a minor. He stated the ordinance does not talk about adults providing alcohol to a minor. It talks about adults providing a venue, something stated in a blog the other day, where alcohol may be consumed by a minor whether or not the alcohol was provided by the person that controls venue or not. He provided an example where there is a party in someone's garage and the property owner is upstairs sleeping and there is a minor consuming alcohol by someone who came on to the premise that is not related to the owner of the property. The owner of the property would be guilty of a misdemeanor by sleeping upstairs when there is a party going on in the garage. That is what the law says. He then stated the law as proposed clearly excludes an adult sibling giving alcohol to a sibling who is a minor. It states it excludes family members providing alcohol to a family member in their own home. He noted that from his perspective the law is full of holes. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES August 27, 2012 Page 13 of 15 Councilmember Zerby stated he does not agree that the law is full of holes. It has been used in a number of cities and states successfully. He noted he does not think it would be a burden on anyone. He stated what happens in a person's home is their responsibility whether the owner is sleeping or not He views that as shirking responsibility if a person uses they are sleeping as an excuse. He stated the police department and School District representatives have both asked cities to adopt a social host ordinance as a tool to help them curtail some of the mischief that has occurred in the community. The ordinance gives them that tool. He commented that he does not think there is any reason to fear it. He stated if it can help the police help people from making bad decisions that may Lead to undesirable life consequences he supports having such a tool. Zerby moved,11mvet seconded, Approving ORDINANCE NO. 498 "An Ordinance Adding a New Chapter 612 to the Shorewood City Code Regarding Social Hosts, and Adopting Resolution No. 12- 055, "A Resolution Approving Publication of Ordinance No. 498 by Title and Summary." Councilmember Zerby cautioned against believing everything a person reads on the internet Motion passed 3/2 with Siakel and Woodruff dissenting. 12. STAFF AND COUNCIL REPORTS A. Administrator and Staff 1. Monthly Financial Report Director DeJong noted the meeting packet contains a copy of the July 2012 Monthly Budget Report. It also includes some summary information about other operating funds. With regard to the 2011 financial audit, DeJong stated the City taxes a little bit more because it is financing its capital projects and purchases though the general tax levy rather than debt service. He noted the City does not receive any local government aid. The cities in the peer group on average are taxing less than their current expenditures and that means it has to be made up somewhere and that would be with state aid. DeJong stated there are losses in the enterprise funds; particularly the Sewer Fund. Metropolitan Council Environmental Services (MCES) changed the way it charges for wastewater management services. MCES had planned on receiving a lot of its funding though new connection charges for sewer mains that were extended. The new connections did not come to fruition as planned. Therefore, MCES increased what it charged municipalities for services provided significantly in 2011. The City has not adjusted its sewer rates to address that increase. He noted the plan is to use some of the balance in the Sewer Fund to finance stormwater projects. He stated earlier this evening the auditor recommended the City monitor the funds to ensure it will be adequately funded to support stormwater projects and sewer operations. Mayor Liz €e thanked Director DeJong for the clarifications. Councihnernber Zerby stated the Audit Management Letter recommended the Finance Director complete bank and investment reconciliations on a timely basis and to meet with the City Administrator to review the reconciliations for completeness and irregularities. He asked Director DeJong if he has started to do that DeJong responded he has spoken with Interim Administrator Joynes about that process and he has been working with KDV on some modified processes. DeJong explained that when he joined the City CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES August 27, 2012 Page 14 of 15 Staff was about eleven months behind in the reconciliation process. When the 2010 audit was finally completed Staff was about eight months behind. The catch -up effort has been difficult and he needed some outside assistance with the effort. The reconciliations are now caught up. The next step is to implement processes that will make it easier to do it on a monthly basis. Zerby asked that information be included in the monthly report. Other Director Nielsen noted Councilmember Hotvet asked him to give a brief update on the status on trail planning. That item that will on the Planning Commission's September 18, 2012, meeting agenda. Nielsen explained the City Engineer has been working on the plans. Survey work has been done on the segment of trail proposed for between Smithtown Road and the LRT Trail. Staff has made repeated attempts to get together with representatives from Xcel Energy and the owner of the bus garage property. The City needs easements from both of them. The City received feedback from Xeel representatives over a week ago that it has been busy and that it is trying to arrange a time to meet with Staff. Three or four attempts have been made to contact the owner of the bus garage property by Engineer Landini. There had been a company listed on the tax records for that property and members of that company did not respond to any of the emails or letters. About two weeks ago Landim found out that the tax records had been changed. They now show the property owner's home address in the City of Minnetonka. Landim sent a letter to that residential address, but there has not been any response. He and Landim went to that property on August 23`' to try and speak with the property owner but no one was home so they left another letter in the door. Staff has a phone number for the person and will attempt to reach him by phone. Nielsen stated Councilmember Hotvet asked about the possibility of having a feasibility study for that segment of trail. He noted he spoke with a representative from WSB & Associates to ask for a cost estimate to do a study. Councilmember Hotvet clarified her question about the feasibility study was for a trail segment along Smithtown Road. Nielsen stated based on the information from WSB he thought a study would cost $7,000 — $8,000. Nielsen noted Engineer Landim has not done any work on that Smithtown Road segment. Councilmember Woodruff asked if it would be the segment from the Minnewashta School to the City of Victoria Boarder. Hotvet stated that is correct based on the Trail Committee's discussions. Nielsen noted he will ask for new feasibility study cost estimates for that segment the next day and put that on the next Council meeting agenda. Councilmember Zerby stated there has been some discussion about having that segment extend beyond the School to the LRT Trail. Councilmember Siakel clarified the LRT Trail segment at Eureka Road. There was Council consensus to have Director Nielsen get an estimate for a feasibility study from the Victoria boarder to the LRT Trail at Eureka Road. B. Mayor and City Council Councilmember Woodruff stated he and Director DeJong attended the second of three meetings on the Association of Metro Cities' Revenue and Taxation policies. The group is discussing if there should be a policy relative to taxing electronic commerce sales (i.e., internet sales). Councilmember Zerby stated he attended the ice cream social held at the Southshore Community Center. He stated he was appreciative of Excelsior Fire District Chief Gerber and Fire Inspector Murphy - Ringate being there along with some of the District's vehicles. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES August 27, 2012 Page 15 of 15 Councilmember Hotvet stated she attended the second meeting of the League of Minnesota Cities (LMC) Improving Service Delivery Policy Committee last week today. She noted the plan is to have someone from the LMC come before Council to provide a report on those discussions. Mayor Lizee noted Hennepin County is holding a pedestrian workshop on August 28 from 6:00 P.M. to 7:30 P.M. at the Grey Freshwater Center. She encouraged the other Councilmembers, some Park and Planning Commissioners and members of the Trail Committee to attend. She then noted that Apple Day is happening in the City of Excelsior on September 8 "' and she encouraged people to come to the Friends of the Excelsior Library book sale from 8:00 A.M. to 3:30 P.M. that day. She stated on the cover of the most recent Lake Minnetonka magazine is a picture of Kristi Anderson, who manages the operations of the Southshore Community Center (SSCC), in Oktoberfest dress. The magazine includes an article on the Oktoberfest which will be at the SSCC on October 6"' from 5:00 P.M. to 8:00 P.M. She thought Excelsior Brewing Company is going to be one of the sponsors. Lizee read a copy of an email she received on August 24, 2012, from the Minnehaha Creek Watershed District (MCWD). The email reads as follows. "Mayor Lizee, I'm pleased to inform you that the City of Shorewood is receiving a 2012 Watershed Heroes Award from the Minnehaha Creek Watershed District. At its meeting last night, the MCWD Board of Managers selected the City of Shorewood for the innovation in Government Award in recognition of the City's long record of environmental stewardship. From its groundbreaking work on regulating the use of phosphorus fertilizer to its leadership in the fight against Aquatic Invasive Species, the City of Shorewood has demonstrated a strong commitment to clean water. The 2012 Watershed Heroes Awards ceremony is planned for Thursday, October 18 at the Bayview Event center in Excelsior (6:30 P.M hors d'oeuvres and cash bar, 8:00 P.M. program). As an award recipient you'll receive six complimentary tickets. A formal announcement and invitation will be going out after Labor Day, but I wanted you to know so you can get it on your calendar." Lizee thanked Council, Staff, commissioners and volunteers who have helped to make these environmental things happen and keep up the leadership over the last decade. 13. ADJOURN Hotvet moved, Zerby seconded, Adjourning the City Council Regular Meeting of August 27, 2012, at 8:52 P.M. Motion passed 510. RESPECTFULLY SUBMITTED Christine Freeman, Recorder � ATT � ®® G / Christine Lizde, Mayor William S. Joygks,ll�*rim City Administrator /Clerk