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01-14-13 CC Reg Mtg MinCITY OF SHOREWOOD CITY COUNCIL REGULAR MEETING MONDAY, JANUARY 14, 2013 MINUTES 1. CONVENE CITY COUNCIL REGULAR MEETING 5755 COUNTRY CLUB ROAD COUNCH, CHAMBERS 7:00 P.M. Mayor Zerby called the meeting to order at 7:00 P.M. A. Roll Call Present. Mayor Zerby; Councilmembers Hotvet, Siakel and Woodruff, Attorney Keane; Finance Director DeJong; Planning Director Nielsen; Director of Public Works Brown; and Interim City Engineer Hornby Absent: Couneilmember Sandberg; City Administrator Joynes B. Review Agenda Havel moved, Woodruff seconded, approving the agenda as presented. Motion passed 4/0. 2. APPROVAL OF MINUTES None. 3. CONSENT AGENDA Mayor Zerby reviewed the items on the Consent Agenda. Siakel moved, Woodruff seconded, Approving the Motions Contained on the Consent. A. Approval of the Verified Claims List B. Setting a Joint Meeting with the Park Commission on February 11, 2013 at 6:00 P.M. Motion passed 4/0. 4. MATTERS FROM THE FLOOR There were no matters from the floor presented this evening. 5. PUBLIC HEARING None. 6. REPORTS AND PRESENTATIONS A. Report by Mark Sylvester on Lake Minnetonka Conservation District Activities CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES January 14, 2013 Page 2 of 14 Mr. Sylvester congratulated Mayor Zerby and Councilmembers Sundberg and Woodruff on their new terms on the City Council. Mr. Sylvester stated since he last provided Council with an update on Lake Minnetonka Conservation District (LMCD) activities there has been one issue the LMCD has been working on. It is the LMCD's draft Comprehensive Eurasian Watermilfoil (milfoil) and Curly -Leaf POndweed (CLP) Management Plan (the Plan) for Lake Minnetonka (the Lake). The LMCD Aquatic Invasive Species (AIS) Task Force subcommittee has been working on it for a while. The draft Plan was presented to the LMCD Board in early November 2012. The Plan accomplishes some very good things. But, he does have some concerns about the Plan. Mr. Sylvester explained he has been looking for a plan that addresses the management of milfoil and CLP. The Plan does that. He expressed concern that the Plan identifies harvesting as the primary tool for vegetation management. He stated from his vantage point some of the new technologies such as herbicide treatment would be more appropriate as the primary form of vegetation management. Mr. Sylvester then explained the Plan expands herbicide treatment program from five bays to eight bays. It talks about project management for vegetation management. The Lake Minnetonka Association (LMA) has been responsible for managing the herbicide treatment pilot program. The LMCD has assigned resources to that project. The Plan takes the LMA out of the project management role. The Plan does not specifically assign project management responsibility, but it does say the LMCD would be the most likely project manager. Ile noted he has concern about that because he does not think the LMCD is the appropriate body to serve as the project manager for the herbicide treatment program. The LMCD does not have adequate expertise to serve in that capacity, and the LMCD does not have the time or resources to dedicate to it. The Plan leaves the funding source for herbicide treatment open. The Plan states the cost for herbicide treatment of the eight bays will be roughly $75,000. He thought that amount is very light and very conservative. The LMCD does not have that $75,000 in its budget. The only way to get it without the largest revenue source for herbicide treatment, aka the bay captains, coming up with it is to increase the amount levied on the LMCD's fourteen member cities. It is an option, but not one he is in favor of. Mr. Sylvester reiterated the Plan accomplishes something he would like to see; it would accomplish vegetation management in the Lake. But, the Plan has some holes in it. Mr. Sylvester noted that because of his concerns he voted against accepting the draft Plan. Mr. Sylvester explained the LMCD held a public hearing on the Plan on December 12, 2012. A number of people attended the hearing and many gave their opinion on the Plan. The LMCD Board also received written feedback on the Plan from others. During the meeting the Minnetonka City Manager stated Minnetonka does not think the LMCD has the authority to serve as the project manager; the LMCD was established as a regulatory agency. It does not have the authority to implement policy like this on the Lake. State Statute can be argued both ways. The bay captains are against the Plan. The bay captains submitted a letter that is approximately 2.5 pages long identifying their concerns they have about the Plan. One was it addresses milfoil and CLP but no other invasive vegetation that could potentially get into the Lake. The bay captains have an issue with the LMCD being the most likely project manager. The bay captains have dealt with the LMA for the last five years on the herbicide treatment pilot program. The bay captains know who to contact when there is an CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES January 14, 2013 Page 3 of 14 issue or one of the residents in the area they represent has a concern. They are familiar with the LMA and are contained about moving project management to an agency like the LMCD. The bay captains have concern about the primacy of harvesting. The letter states that harvesting will cover approximately 300 acres. The Plan states the herbicide treatment of the eight bays will cover approximately 1000 acres. The captains therefore question why harvesting would be labeled the primary tool. He noted the bay captains raised over 50 percent of the funding (more than $500,000) for the herbicide treatment pilot program. Therefore, he views the bay captains as a very substantial stakeholder. He then noted that Councilmember Woodruff provided his comments during the hearing and that he and Woodruff share some concerns. One of them is labeling harvesting as the primary tool and another is increasing the levy. Mr. Sylvester stated although there are holes in the Plan there are also opportunities. He then stated the Plan could turn into a good piece of legislation. Councilmember Woodruff stated he attended the public hearing on the draft Plan. He noted revisions have been made to the draft Plan discussed during the hearing to incorporate some of the comments received. He stated he thought the updated draft of the Plan would be circulated to LMCD Boardmembers this week. Based on his conversation with the LMCD Executive Director Greg Nybeck the Board will talk about the revised draft Plan during its next regular meeting. Woodruff noted the LMCD's legal counsel believes the LMCD has the authority to serve as project manager. He stated from his perspective the biggest problem Minnetonka has is very little of the land in Minnetonka fronts the Lake yet it has to contribute a large amount of money to the LMCD's budget. He interpreted the Minnetonka City Manager to convey that Minnetonka does not want its levy increased for any reason and especially if it is for additional treatment of invasive species. He boiled Minnetonka's concern down to a financial issue. Woodruff stated he thought the letter from the bay captains had some misconceptions in it. He thought some of it was kind of emotional. He thought most of the concerns cited could be worked out. He noted he also has a concern about the word "primary" in the Plan. He stated he thought the Plan unnecessarily used that word. He explained the Plan identifies a list of tools to deal with AIS and that there will be more tools added as they are developed. Existing and future tools will be used when they are identified as the appropriate tool to use for the situation. He stated it is his understanding that the language primary tool is going to be modified to more clearly reflect what the document says. Woodruff then stated the project management thing is a concern. He explained the LMCD has never done this before. But, he does not think it would be impossible for the LMCD to do it. It is an issue that needs to be worked on. He stated he knows some of the other government agencies that are participating in funding this have expressed reluctance to continuation of a program where a private entity [the LMA] is the project manager. That was brought out in an AIS task force meeting about three months ago. He then stated he thought it prudent to have this discussion so Mr. Sylvester can gain some idea of where Council stands on this. Councilmember Siakel stated she did watch a video recording of the public hearing on the Plan. She noted the funding issue was a flag for her. She stated the Minnetonka City Manager conveyed a lot of great points. She stated there is a cap on the amount the LMCD can levy. She expressed concern that the LMCD member cities are throwing good money after bad. She noted that if the LMCD levied the maximum it could it would not be enough to meet the needs of managing AIS in the Lake. She stated she does not think the fourteen LMCD member cities will ever be able to fund it. She clarified she is not trying to criticize any one individual. There are a lot of good people who are trying to deal with the issue. She stated the funding for this is not in place. She then stated the Minnetonka City Manager objected to a CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES January 14, 2013 Page 4 of 14 levy increase and she thought she had a good point. LMCD member cities have made a concerted effort to keep their levies flat or close to flat for a number of years. She questioned if the LMCD considered it would have the approval of its member cities to increase its levy. She also questioned if the LMCD has the ability to meet the needs of the Lake in the future. Siakel noted the LMCD has four staff members. Three are full time. She questioned how it would be able to take on project management of this nature. She stated she has no objection to the LMA being the project manager; it has done a good job working with the bay captains and the people in the community to raise money. If the LMA is not going to be the project manager than an outside source other than the LMCD is needed to do that. She explained a lot of the funding to date for herbicide treatment has been from the private sector. Now the LMCD is asking for more public funding for it. She noted that she would not approve the original draft Plan while noting a lot of good work has gone into it. She stated she looks forward to evaluating the revised draft Plan. Councilmember Hotvet expressed her appreciation for Mr. Sylvester taking a stand representing Shorewood. She stated there is a lot of lakefront in Shorewood. She stated she appreciates Mr. Sylvester's approach and forthrightness. Councilmember Woodruff stated right now there is no plan for the Lake. He then stated that more than one year ago there was hope that the Minnehaha Creek Watershed District (MCWD) would take on this responsibility. The indications from the MCWD are that its focus will be on prevention activity for AIS but not maintenance activity. It appears unlikely that the MCWD will take ownership of the management of the Plan. The MCWD may contribute some funding. Woodruff explained for three or four years the Shorewood Council has contributed money toward the herbicide treatment pilot program. From his vantage point the Council has indicated it has a strong interest in herbicide treatment continuing and expanding across the Lake. He noted that he thought it is time to put our money where our mouth is. He stated it would not be a huge increase in the amount of funding the City would have to contribute toward the $75,000. He noted he is in favor of having the LMCD try to move this forward. He stated he views it as the only plan on paper and that it was prepared by a group of people who knew what they were doing, including the Executive Director of the LMA Dick Osgood. He noted Mr. Osgood does not agree with everything in the Plan. Councilmember Hotvet stated she would like funds to be shifted from harvesting to other ways of managing AIS. She noted she does not think harvesting is effective. Mr. Sylvester explained the LMCD's 2013 budget includes $95,000 for harvesting. The Plan recommends another $35,000 be budgeted annually for depreciated capital equipment. The Plan also recommends a budget of $75,000 for herbicide treatments. Bay captains have told him that some private donors to herbicide treatments in the past will not donate in the future if the project manager is from a public entity. They believe it should be a privately run venture. Councilmember Siakel stated it is her understanding that the harvesters were originally donated to the LMCD. Public money was not used to purchase them. Public money is now being used to purchase their replacements. Mr. Sylvester stated there are people who think harvesting should be done by private companies. Councilmember Hotvet stated she would like to see full disclosure of all costs associated with the harvesting program. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES January 14, 2013 Page 5 of 14 Mr. Sylvester stated the expected shelf life of a harvester is fifteen years. An approximate cost for a harvester is $150,000. He doesn't know the cost for winter storage. The personnel time and gas costs are included in the $95,000. Councilmember Siakel stated the total costs for the harvesting program have been disclosed. Councilmember Woodruff stated the Plan does not recommend using just one tool. The subcommittee who developed the Plan identified what it thought the appropriate tool would be for different areas in the Lake. He then stated the 5 -year herbicide treatment pilot program proved herbicide treatment is effective when done properly. And, it showed that herbicide treatment is only effective under certain conditions. The subcommittee determined there are eight bays that could be effectively treated with herbicides. To use herbicides in other areas would not yield useful results. With harvesting you can get useful results. He commented at some time weevils may also be used to manage invasive vegetation. He stated if the $95,000 was spent on herbicide treatments instead that money would be wasted. Mayor Zerby asked Councilmember Woodruff if he was still on the AIS Task Force when the Plan was developed. Councilmember Woodruff stated he still is on the Task Force. Woodruff stated a subcommittee of the Task Force made up of subject matter experts (which he is not) was given the task to develop the draft Plan. After it was developed it was reviewed by the full Task Force before it was presented to the LMCD Board. Councilmember Siakel stated she agrees that a combination of tools will be used to help manage AIS. She then stated she would probably not support the Plan today if the LMCD were to be responsible for project management. She does not think it is within the LMCD's scope; managing AIS is beyond its mission and scope as an organization. It would be difficult for her to support the LMCD as the project manager. She would support another entity as the project manager. Mr. Sylvester asked if she would support the LMCD subbing the project management out. Siakel stated she would listen to options and possibly entertain that. Siakel also stated she does not think it would be within the LMCD's day -to -day responsibilities. Councilmember Woodruff noted he shares Councilmember Siakel's concern about the current LMCD staff having the bandwidth to be the project manager. He noted that LMCD Executive Director Nybeck thinks it does. He stated he would be more comfortable with the LMCD subbing that out. He commented that is essentially what the LMA does. Mayor Zerby stated he echoes Councilmember Siakel's comments. He expressed his appreciation for the job Mr. Sylvester is doing and for keeping Council informed. Mr. Sylvester stated if the project management was subbed out to another entity and the word primary were replaced he asked if Council would support a levy increase. Councilmember Siakel stated she would like to know what the levy increase would be before she would consider it. 7. PARKS A. Report on the January 8, 2013, Park Commission Meeting Park Commissioner Swaggert reported on matters considered and actions taken at the January 8, 2013, Park Commission meeting (as detailed in the minutes of that meeting). CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES January 14, 2013 Page 6 of 14 Director Brown stated earlier in the day he learned that Kelley Casey, an international snow sculptor who fives in the City of Roseville, will be at the Badger Park football field from early Friday morning to 5:30 P.M. to carve four snow blocks for the Arctic Fever event. Mr. Casey's website is www.miibizsnow.com. Channel 4 Weather has opted to bring out its storm chaser vehicle and weather watcher to do a live broadcast from the sculpture garden at 5:00 P.M. and 6 :00 P.M. He thanked Mr. Paul Mullenbach, a member of the City of Excelsior Park Commission, for arranging that. Commissioner Swaggert noted this is the first year for the snow sculpture activity as part of Arctic Fever. He also noted that the Public Works Department has built the molds and the ice blocks. 8. PLANNING A. ASHLAND WOODS FINAL PLAT Applicants: Ashland Woods, LLC Location: 6045 Strawberry lane Director Nielsen explained Ashland Woods, LLC has submitted a final plat for Ashland Woods which is located on the east side of Strawberry Lane immediately south of the Lake Minnetonka LRT Trail. In September 2012 Council approved a preliminary plat for Ashland Woods. The meeting packet contains a copy of the Ashland Woods Development Agreement that sets forth all of the requirements for the plat approval. The plat will generate $35,000 in park dedication fees; $8,400 in local sanitary sewer access charges; and, $70,000 in water connection fees. The Development Agreement included in the meeting packet talks about collecting the water connection charges up front. After receiving the Agreement the developer has asked if he can pay the connection charges with each building permit instead. In the past something similar to this order has been done. Past projects have been allowed to have the water connection fees assessed against lots within the plat. He spoke with Director DeJong about doing that. There is no issue. He noted he had distributed to Council an amendment to the Agreement to that effect prior to the meeting. He clarified that in no way will the City reimburse more than it has collected from the developer in water connection charges. Nielsen then explained that with this plat there is a fairly extensive drainage system. As a result of that the City is requiring the creation of a homeowners association (HOA) that would be responsible for the monitoring of the dry creek bed that leads to the drainage pond located in the northeast corner. The silt in the pond will also have to be cleaned out when it gets too high. The HOA will have the ability to charge its residents if it is been proven that they have thrown stuff into the dry creek bed. If the HCA fails to correct the violations the Development Agreement gives the City the authority to clean out the dry creek bed and then assess the development for those costs. Director Nielsen noted Staff recommends approval of the final plat. Mayor Zerby noted Corey Lepper on behalf of Ashland Woods, LLC is present this evening. Woodruff moved, Hotvet seconded, Adopting RESOLUTION NO. 13 -003, "A Resolution Approving the Final Plat of Ashland Woods." Motion passed 4/0. 9. ENGINEERING/PUBLIC WORKS A. City of Shorewood /Excelsior Watermain Interconnection CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES January 14, 2013 Page 7 of 14 Interim City Engineer Homby stated the meeting packet contains a copy of a memorandum from him dated December 27, 2012, regarding a project that is being contemplated to connect the Shorewood municipal water system with the City of Excelsior's municipal water system. The connection would be extended through the City of Greenwood. It would go along Excelsior Boulevard from a point east of the Excelsior /Greenwood border to Barrington Way. This was one of the cooperative projects Council authorized Staff to research further that could possibly be done in conjunction with Metropolitan Council Environmental Services' (MCES) force main upgrade project. Homby stated interconnections are a practical way to try and provide water flow between municipalities. He explained that from an engineering perspective having this watermain interconnect would not provide a lot of benefit to Shorewood. His memorandum identifies specifics. The approximate cost for Shorewood's share of the watermain interconnect project would be $241,000. The length of the watermain that would be in Shorewood is approximately 700 feet. This project cost is not included in the City's 20 -Year Municipal Water Plan (the Water Plan). He noted there are other interconnection opportunities with Excelsior identified in the Water Plan. They are more cost effective. Interim City Engineer Hornby noted that Staff recommends withdrawing this project from MCES' project plan. Councilmember Woodruff thanked Staff for the good analysis and for identifying alternative interconnection opportunities. He asked if Greenwood is aware that Staff is recommending withdrawal. Interim City Engineer Homby responded both Excelsior and Greenwood are aware. In response to a question from Councilmember Woodruff, Interim City Engineer Homby explained the Water Plan shows that one of the two interconnection alternatives identified in his memorandum is scheduled for 2022. Councilmember Siakel stated she found the information provided to be very helpful and that it is well laid out. She asked Interim City Engineer Homby to explain where the other two interconnection opportunities would be. Homby explained there is an interconnection opportunity at the same intersection and it would extend across State Highway 7 from Radisson Entrance to Manor Road. That would save approximately $50,000 in today's dollars in comparative costs with the MCES project. That project would build in watermain redundancy. The better interconnection opportunity is at State Highway 7 and Christmas Lake Road. That would save approximately $150,000 in today's dollars in comparative costs with the MCES project. Siakel moved, Woodruff seconded, directing staff to notify Metropolitan Council Environmental Services, the City of Excelsior and the City of Greenwood that the City of Shorewood is withdrawing the interconnection project from the MCES project plan. Motion passed 4/0. B. Metropolitan Council Forcemain Cooperative Project Update Interim City Engineer Homby stated the meeting packet contains a copy of a memorandum from him dated January 14, 2013, regarding four additional cooperative projects that are being contemplated to be done in conjunction with the Metropolitan Council Environmental Services' (MCES) force main upgrade project. The projects include: 1) a complete separation of Lift Station 11's force main pipe from Met Council's force main (Lift Station I1 would then discharge directly to the gravity flow system); 2) a redundant State Highway 7 watermain crossing; 3) a trail extension from Manor Road to Barrington Way along Excelsior Boulevard; and, 4) some storm sewer improvements to help drain Excelsior Boulevard to reduce icing on Excelsior Boulevard during the winter months. CITY OF SIIOREWOOD REGULAR COUNCIL MEETING MINUTES January 14, 2013 Page A of 14 Hotrtby noted he did not provide any detail in his memorandum on the Lift Station I1 force main separation project, in part because he thinks it is very logical to move forward with it. He explained Lift Station 11 is scheduled to be rehabilitated in 2014. It would not make sense to disturb the City's residents in the same corridor as MCES' force main project two years in a row. Part of the force main separation could be done in 2013 and the remainder in 2014 with the rehabilitation project. Homby explained the trail extension from Manor Road to Barrington Way along Excelsior Boulevard was originally estimated to cost $30,000 — $35,000. Preliminary designs indicate a retaining wall would have to be constructed as part of the project because of the side slope along State Highway 7. That retaining wall would exceed 600 feet in length. That brings the estimated cost to $130,000. The retaining wall would be constructed using Minnesota Department of Transportation (MnDOT) style modular block. It's likely the retaining wall would be located in the Highway 7 right of way (ROW) in order to fit the trail in and would therefore require some permitting from MnDOT. He stated it is up to Council to decide if the City should spend more than three times the amount on that trail than was originally anticipated. He then stated that although a trail was considered for that vicinity, it is a low priority in the Trail Implementation Plan. After taking everything into consideration, Staff recommends this project be withdrawn from the MCES project plan. Other alternatives could be considered going forward. Councilmember Hotvet stated the City of Greenwood was very interested in having a safe passage toward City of Excelsior along that stretch of Excelsior Boulevard. Therefore, it might be worth talking to Greenwood about the trail. She clarified she is not saying the City should spend $130,000 on the trail at this time. She stated she thought it prudent to make sure there are no possible cooperative options. Interim City Engineer Homby clarified the segment being discussed is from Manor Road to Barrington Way. He explained Greenwood may have plans for the side slope going to the west located in Greenwood toward Excelsior. Councilmember Siakel stated if there is a public safety issue and if Excelsior and Greenwood build a trail along that area it may be worth it for the City to construct that trail segment. She noted at this time she is willing to keep it as part of the MCES plan until Council can be provided more details. She stated she would like to know what Excelsior and Greenwood plan on doing. She then stated when the Trail Implementation Plan was developed it took into consideration connecting schools. Councilmember Woodruff asked if there would be major savings by doing the trail project in conjunction with the MCES project. Interim City Engineer Homby stated may be some cost incentives. Interim City Engineer Homby explained the City needs to provide design detail to MCES by January 21, 2013. Staff can provide the design information for inclusion in MCES' plans. After the bid package is received Council can decide if it wants to withdraw the trail project or not. Councilmember Woodruff stated the City is considering a proposed trail segment from the LRT on the east side of County Road 19 in Shorewood to the existing trail in front of the Tonka Village Shopping Center in Tonka Bay and a proposed Smithtown West Trail segment which would go from the Shorewood/Victoria border to the Minnewashta Elementary School and then on to the Lake Minnetonka Light Rail Trail at Eureka Road. The cost to construct those two trail segments would consume a substantial portion of the budget for trails. He expressed concern about taking on what is not a small amount of money for a project that is not a high priority in the Trail Implementation Plan. He noted the City has been approached by a resident about having the City possibly funding a feasibility study for a CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES January 14, 2013 Page 9 of 14 Galpin Lake Road sidewalk/trail. He cautioned Council about telling people every two weeks about how much Council loves them and forgetting about the people Council loved two weeks ago. Councilmember Siakel stated there has to be a balance. She reiterated that Council needs more information about this. Councilmember Woodruff stated he can support keeping the trail project in the MCES project plan provided there is not a substantial cost to do so. He then stated Council has to sharpen its pencil when the bid amounts come back when it has to decide if it wants the City to move forward with the trail project. Director Brown asked Interim City Engineer Homby how the design costs are broken out. Homby explained the City is providing standard details, layout and general guidelines. Therefore there is some staff time cost for the design. Councilmember Woodruff stated that cost plus the cost to review the bid for the trail project is nominal. Homby reiterated the City is providing standard detail information and layout information to MCES and MCES is incorporating that into its plans. Interim City Engineer Homby explained at this time the plan is to use a MnDOT style modular block to construct the retain wall because it can provide more strength to hold back the side slope along Highway 7. It could be harder to get a boulder wall permitted when it would be located in the MnDOT ROW. Councilmember Woodruff cautioned against ramming something down MnDOT's throat. Interim City Engineer Homby agreed. Interim City Engineer Hornby explained currently the cooperative project to install a redundant watermain crossing of State Highway 7 has the proposed crossing being located along the MCES force main approximately midway between Old Market Road and Manor Road. From an operational standpoint there would be better flow distribution if the redundant crossing were located at Manor Road. He noted that a redundant crossing is scheduled for 2022 in the City's 20 -Year Municipal Water Plan (the Water Plan). He stated from an operational standpoint on the north side of Highway 7 the northeast water system with the variable speed drives for the well pumps the City can supply the capacity for the demand in that northeast area. Therefore, a redundant crossing would not be necessary. Staff does recommend looping that in the future as the Water Plan develops in that area. With regard to the Excelsior Boulevard storm sewer improvements cooperative project, Interim City Engineer Homby explained there is a significant wetland on the north side of Excelsior Boulevard. The roadway tips from the south to the north so the water drains from the Highway 7 ROW across the roadway. Occasionally after rain events there will be ponding on the south side of Excelsior Boulevard resulting in stagnant water. During the freeze /thaw cycle in the winter and spring there can be sheet icing across the roadway creating undesirable driving conditions. This project would provide a drainage structure on the south side of Highway 7 and a storm crossing to the north side where a water quality structure would be installed to remove sediment. The roadway would be crowned so water does not sheet across Excelsior Boulevard at that location. He noted Staff recommends keeping this project in the MCES project plan. With regard to the Lift Station 11 force main cooperative project, Interim City Engineer Homby explained it would make sense to keep the portion of the project that would go from approximately Radisson Road up the hill toward Covington Road in the MCES project plan. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES January 14, 2013 Page 10 of 14 Interim City Engineer Homby recapped Staff is recommending Council keep the Excelsior Boulevard trail, the Lift Station 11 force main, and the Excelsior Boulevard storm sewer improvements in the MCES plan, and to withdraw the redundant watermain crossing from the plan. Councilmember Woodruff asked when Excelsior Boulevard is scheduled for substantial improvements in the 20 -Year Pavement Improvement Plan. Interim City Engineer Homby stated he does not know that answer, but he anticipates significant improvements would not have to be made for a substantial number of years after this cooperative project is completed. Homby explained the MCES force main project is going to disturb one half of the roadway and MCES will repair it and as part of the agreement in place with MCES it will mill and overlay the other half of the roadway as well. Woodruff moved, Hotvet seconded, directing Staff to complete the design for the Excelsior Boulevard trail, the Lift Station 11 force main separation, and the Excelsior Boulevard storm sewer improvements cooperative projects for inclusion in the Metropolitan Council Environmental Services force main upgrade project plan. Motion passed 4/0. 10. GENERAL/NEW BUSINESS A. Lake Minnetonka Communication Commission Board Representative Appointment Mayor Zerby noted that just prior to this meeting Council interviewed one candidate, Joseph Huber, to serve as the City's citizen representative on the Lake Minnetonka Communications Commission Board for 2013. Woodruff moved, Siakel seconded, adopting RESOLUTION NO. 13 -004, "A Resolution Appointing Joseph Huber as the City Representative to the Lake Minnetonka Communications Commission Board for the Year 2013." Mayor Zerby stated he was impressed with Mr. Huber's eagerness to serve in that capacity. He then stated he thought he has good credentials. He went on to state he thought Mr. Huber would serve the City well. Motion passed 4/0. Mayor Zerby asked Deputy Clerk Panchyshyn to notify Mr. Huber. B. Appointments to Certain Officers and Positions within the City of Shorewood for the Year 2013 Councilmember Woodruff stated the list of appointments and positions does not include the liaisons to the Riley Purgatory Bluff Creek Watershed District ( RPBCWD) and the Minnehaha Creek Watershed District (MCWD). He wanted to make sure they were not eliminated. He recommended the list be revised to include the one appointed last week. The RPBCWD should be to be determined. Mayor Zerby stated an alternate still has to be appointed to the Lake Minnetonka Communications Commission. Councilmember Siakel stated she served in that capacity in 2012 and would be willing to do so again this year. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES January 14, 2013 Page 11 of 14 Hotvet moved, Woodruff seconded, Adopting RESOLUTION NO. 13 -005, "A Resolution Amending Resolution No. 13 -002 Making Appointments to Certain Offices and Positions within the City of Shorewood for the Year 2013 appointing Councilmember Deb Siakel as the alternate to the Lake Minnetonka Communications Commission. Motion passed 410. C. Call for Sale of the Series 2013A General Obligation Water Revenue Refunding Bonds Director DeJong explained that a couple of months ago the City interviewed a couple of financial advisory firms. Council chose Northland Securities to continue to be the City's financial advisor. In conjunction with that Council and Staff discussed the potential refunding the City's General Obligation (GO) Water Revenue Bonds Series 2005A and Series 2006A. He noted Staff is asking Council to issue a call for sale this evening. He stated Paul Donna with Northland Securities had planned to be present this evening to present the information, but unfortunately something personal came up. Rusty Fifield, Senior Vice President with Northland Securities, will present the information instead. He noted that Mr. Fifield conducted a utility rate study for the City a few years ago. He explained Council will be provided two options to pick from. Mr. Fifield explained the City has the opportunity to refinance two existing bond issues; 2005A and 2006A. The 2005A bonds will be done with a current refunding. Those bonds will immediately be called and replaced with new debt. The 2006A bonds cannot be called and prepaid until January 1, 2014. Therefore, a portion of the proceeds will be placed in an escrow account and used on January 1, 2014, to call those bonds. Mr. Fifield noted Council had been provided with a copy of a Finance Plan Report explaining this issue in advance of this meeting. He explained page 4 in the Report explains two scenarios for structuring the debt. One is a uniform savings scenario. That means the refunding 2013A bonds will be structured to follow the existing debt service schedule. Therefore, the City's savings will be uniform over the life of the bonds. The savings are projected to be around $289,000 in total over the life of the bond issue. He noted the City does have an opportunity to shorten the life of the bonds and pay the debt off approximately three years earlier (the late savings scenario). He explained doing that would increase the savings to close to $329,000. He clarified there is no right or wrong answer in how to do this. Mr. Fifield stated a call has been scheduled with a rating agency [Moody's Investor Services} for January 15, 2013, to get a rating assigned for the sale of the 2013A bonds. Northland recommends the sale of the bonds be conducted two weeks from today, January 28. The results from that sale will be brought to Council during its January 28 Regular meeting. He noted Kennedy & Graven, as bond council, has prepared a resolution calling for the sale of bonds. He then noted Council is being asked to adopt that resolution this evening and to state its preference for how to structure the refunded bonds. Councilmember Woodruff asked if the late savings scenario interest rate would be the same as the anticipated average 1.22 percent interest rate for the uniform savings scenario, noting it will cost the City a little more if the late savings scenario were used. Mr. Fifield explained the late savings scenario would result in a lower average interest rate. Interest on municipal bonds increases over time and with that scenario the three highest interest rates would be dropped off. The average interest rate for late savings would likely be I percent — 1.1 percent. Mr. Fifield stated Northland thinks this is an excellent opportunity to squeeze through a very narrow window in the market place and lock in the savings from refunding the bonds. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES January 14, 2013 Page 12 of 14 Councilmember Woodruff expressed his preference for the late savings scenario, noting he would like the City to have higher savings. He noted the City does not have a problem servicing the debt at this time. Councilmember Siakel stated this is an excellent opportunity. Siakel moved, Woodruff seconded, Adopting RESOLUTION NO. 13 -006. "A Resolution Providing for the Issuance and Sale of General Obligation Water Revenue Refunding Bonds, Series 2013A, in the Proposed Aggregate Principal Amount of $2,270,000" subject to using the late savings scenario. Director DeJong noted that because Council has chosen the late savings scenario the call date will be moved up two years on the refunded bonds. Councilmember Woodruff asked if doing that will reduce the savings. Mr. Fifield responded it will not. Motion passed 4/0. 11. OLD BUSINESS A. Mayor's Update on the Investigation of Senior Commissions Mayor Zerby stated that Communications Coordinator Moore had sent Council additional information related to senior commissions. He then stated he came across a short video put together by Next Avenue (which got its start at Twin Cities Public Television) about what seniors do for a community and what the community does for them. He noted Staff jumped through hoops from a technological perspective to make this available for viewing. After viewing the video, Mayor Zerby thanked Council for its patience in watching the video. Zerby stated he is not sure if the City should consider establishing a senior commission or a task force. He noted that he will work with Interim City Administrator Joynes about putting together a more formal recommendation. Councilmember Woodruff stated Communications Coordinator Moore sent Council some website links to information about what various cities in the area are doing with regard to senior commissions. He contacted staff at those cities and spoke to them about what they are doing. Woodruff summarized what he learned. The City of Minnetonka senior commission is virtually 100 percent focused on activities at its senior center. Minnetonka does produce a senior resource guide. Minnetonka's population is about 50,000 and about 14,000 are seniors. (There are about 900 senior residents in Shorewood.) The City of Chanhassen senior commission is very involved with all of the things listed on the commission's website. It focuses on five major areas — information and referral, transportation, housing, a gathering place and nutrition. The City of Victoria senior commission has a great charter but it doesn't do anything. Woodruff stated he would like to avoid establishing a senior commission/advisory board/task force that people would lose interest in relatively quickly. He then stated Council needs to have a clear vision of what it would like such a group to do. He noted that those he spoke with told him it was important to have some non - seniors as members of the group. Councilmember Siakel asked Mayor Zerby if his idea is to pull together a group of people to talk about how residents can age in place in Shorewood. It would be a diverse group of people that could provide input about much more than just activities at the Southshore Community Center. It could provide input to CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES January 14, 2013 Page 13 of 14 the Planning Commission. She noted the City has already taken some steps toward aging in place by allowing accessory apartments. She stated she thinks establishing such a group would be a really good idea. She also agreed there needs to be a clear understanding of what the group should do. Councilmember Woodruff stated that because the City's population is not that large he thought it would be necessary to involve other cities to get some things done. For example, it would be great to have a transportation system but he is not sure the City could afford that. He commented there is the Hennepin Country transportation system. Councilmember Hotvet stated to do this the City has to reach out to the other cities in the South Lake area. Councilmember Siakel stated LaRhae Grindal Knatterud, director for aging transformation with the Minnesota Department of Human Services (DHS), spoke to the League of Women Voters South Tonka during a program at Minnetonka City Hall about a program called Own Your Future (a joint federal and state public awareness effort to encourage and enable individuals to plan for their long -term care needs). She thought Ms. Grindal Knatterud did an excellent job presenting, and she noted she provided attendees with a planning guide. Siakel explained the Governor Dayton/Lieutenant Governor Prettner Solon administration is sponsoring the Minnesota Own Your Future initiative. A brochure was mailed to all households that a person 55 years of age or older lived in 2012 about long -tern care. She thought the brochure was very well done. She recommended the City have Ms. Grindal Knatterud come and speak to residents during a public information meeting about long -term care. She noted the relatively resident survey indicated that residents have a desire to age in place. Councilmember Woodruff stated about three years ago the State conducted a demographics survey. A very high percentage of the seniors surveyed indicated they planned to age in the home they currently lived in. B. Ordinance Regulating the Use of Coal -Tar Driveway Sealants Director Brown stated at the dais this evening Council found a copy of a revised ordinance regulating the use and sale of coal -tar based sealer products. He explained that when the ordinance was revised to clarify asphalt based products versus undiluted coal -tar based products the subdivision relating to the sale of coal -tar based sealer produces was inadvertently left out. Woodruff moved, Siakel seconded, Approving ORDINANCE NO. 500, "An Ordinance Regulating the Sale and Use of Undiluted Coal Tar Bases Sealer Products within the City of Shorewood, Minnesota" and Adopting RESOLUTION NO. 13 -007. "A Resolution Approving Publication of Ordinance No. 500 by Title and Summary." Motion passed 4/0. 12. STAFF AND COUNCM REPORTS A. Administrator and Staff Director Brown explained there continues to be an electrical issue at Badger Park. The City has promised there would be lighting at the sculpture garden on the football field for the snow carving. Staff tried to make it work to have both the Badger Park hockey rink and football field lights on at the same time and that did not work. He will try and get portable lighting for the sculpture garden on the football field tomorrow. Brown stated the Arctic Fever committee is trying to get vendors for the event to adapt do to the loss of snow cover because of the recent rains. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES January 14, 2013 Page 14 of 14 Director Nielsen stated during Council's next meeting he will provide an update on the proposed trail segment from the LRT on the east side of County Road 19 in Shorewood to the existing trail in front of the Tonka Village Shopping Center in Tonka Bay and a proposed Smithtown West Trail segment which would go from the Shorewood /Victoria border to the Minnewashta Elementary School and then on to the Lake Minnetonka Light Rail Trail at Eureka Road. He then stated Public Works did a great job with creating the snow cubes. B. Mayor and City Council Mayor Zerby stated that on January 12, 2013, the City of Greenwood hosted a Planning and Zoning Workshop at the Southshore Community Center. He, Councilmember Hotvet, Councilmember Siakel, Director Nielsen, Planning Commission Chair Geng, Planning Commissioner Davis, and Planning Commissioner Hutchins attended the workshop. He found the Workshop to be very enlightening, and for him it was a great refresher course. The facilitators were excellent. People from multiple cities attended and attendees ranged from newly appointed commissioners and newly elected officials to seasoned individuals. He thanked Greenwood for hosting the Workshop. He then stated he received an email from Greenwood Mayor Deb Kind asking if there would be any interest in another workshop later in the year that would cover more advanced subjects. i .1 • MLI Hotvet moved, Woodruff seconded, Adjourning the City Council Regular Meeting of January 14, 2013, at 8:35 P.M. Motion passed 4/0. RESPECTFULLY SUBMITTED, Christine Freeman, Recorder ATTEST: JeaW Panehyshyn, Deputy City Clerk mot erby, Ma o r