03-25-13 CC Reg Mtg MinCITY OF SHOREWOOD
CITY COUNCIL REGULAR MEETING
MONDAY, MARCH 25, 2013
MINUTES
1. CONVENE CITY COUNCIL REGULAR MEETING
5755 COUNTRY CLUB ROAD
COUNCIL 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, Sandberg (arrived at 8:07 P.M.), and
Woodruff; Attorney Keane; City Administrator Joynes; Finance Director DeJong;
Planning Director Nielsen; and, Interim City Engineer Homby
Absent: None.
B. Review Agenda
Woodruff moved, Hotvet seconded, approving the agenda as presented. Motion passed 4/0.
2. APPROVAL OF MINUTES
A. City Council Regular Meeting Minutes, March 11, 2013
Woodruff moved, Hotvet seconded, Approving the City Council Regular Meeting Minutes of
March 11, 2013, as amended in Item 6.B, Page 5, Paragraph 4, Sentence 1 change "Councilmember
Woodruff noted in 2011 Council approved a $7,000 ..." to "Councilmember Woodruff noted in
2012 Council approved a $7,000 ... ". Motion passed 4/0.
3. CONSENT AGENDA
Mayor Zerby reviewed the items on the Consent Agenda.
A. Approval of the Verified Claims List
Councilmember Woodruff stated there is check listed on the verified claims list to the City of Chanhassen
in the amount of $37.91. It's his understanding that Chanhassen is billing the City for stormwater at
Cathcart Park. He noted that he thought that is fairly petty. He encouraged someone to have a discussion
with either the Chanhassen Mayor or the Chanhassen City Manager about Chanhassen's philosophy on
charging the City for an amenity located in Chanhassen and used by Chanhassen residents.
Mayor Zerby asked Director DeJong if that is a new charge or something the City has been charged for in
the past. DeJong responded it's a new charge. Zerby recommended removing that check from the verified
claims list and having Staff contact Chanhassen staff to discuss this charge. Zerby stated depending on
what Staff finds out he would be happy to contact the Chanhassen Mayor if need be.
Woodruff moved, Siakel seconded, approving the verified claims list subject to removing check
number 54144 in the amount of $37.91 to the City of Chanhassen. Motion passed 4/0.
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March 25, 2013
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B. Lake Minnetonka Association Milfoil Treatment Funding Request
Councilmember Woodruff stated he has issues with contributing $8,000 to the Lake Minnetonka
Association (LMA) for the 2013 herbicide treatment of Eurasian Watermilfoil in Phelps Bay and Gideon
Bay. He explained that although the minutes for the March 11, 2013, Council meeting are correct he
thought his comments about the contribution were misinterpreted. He stated the LMA is now asking for
the $1,000 that was approved for the 2012 treatment but not asked for by the LMA; that is in addition to
the $7,000 Council approved during its March 11 "' meeting. He explained when he moved to approve the
$7,000 during that meeting he did it on the basis that $6,000 was budgeted for 2013 and the fact that the
approved $1,000 was not asked for by the LMA in 2012. He noted that he does not support approving an
additional $1,000 over the $1,000 that is already above the budgeted amount. He stated the City does not
carry unused budgeted amounts into the next fiscal year so technically the $1,000 from 2012 is gone.
Councilmember Siakel asked why the LMA is asking for an additional $1,000 now. Councilmember
Woodruff stated he assumes the LMA believes there is another $1,000 available. Siakel questioned why
the LMA did not ask for that $1,000 in 2012. Woodruff stated he thought that in 2012 Council approved a
$6,000 contribution toward the treatment of Phelps Bay and it then approved $1,000 toward the treatment
of Gideon Bay. That additional $1,000 was overlooked.
Councilmember Woodruff noted that during Council's March 11"' meeting the LMA Executive Director
was told by Council that if the funding raising efforts for the 2013 treatments fall short the LMA could
come and request additional funding. He recommended keeping the City's 2013 contribution at $7,000 at
this time. Councilmember Siakel stated she agreed.
Councilmember Siakel asked if the City is contributing $6,000 toward the treatment of Phelps Bay and
$1,000 toward the treatment of Gideon Bay. Councilmember Woodruff explained his motion was for the
LMA to decide on how the $7,000 should be used between the two Bays.
Mayor Zerby stated the City committed $7,000 to the treatment in 2012. It was the LMA's oversight that
it did not collect $1,000 of it in 2012.
Councilmember Woodruff stated from his perspective the City is giving the LMA that $1,000 in 2013
because the City only budgeted $6,000 for treatments in 2013. Mayor Zerby noted he does not view it that
way.
Woodruff then stated the resolution included in the meeting packet to amend the Parks Maintenance
Budget also includes adding $1,000 for the annual deer survey. He questioned why that is part of the
milfoil funding discussion. He asked if that has to be dealt with this evening. Director DeJong stated that
is in the resolution for clarification purposes. DeJong explained when Council approved the 2013 Parks
Maintenance Budgets in 2012 it included the $1,000 for the deer survey. He noted that the Parks
Maintenance Budget was $7,000; $6,000 for milfoil treatments and $1,000 for the deer survey. He stated
he just wanted Council to know what it is funding.
Woodruff moved, Siakel seconded, Adopting RESOLUTION NO. 13 -017, "A Resolution Amending
the 2013 General Fund Operating Budget" subject to changing the Resolution to amend the Parks
Maintenance Budget of $7,000 for professional services to allow $7,000 for the herbicide treatment
of Eurasian Watermilfoil and $1,000 for the annual deer survey. Motion passed 311 with Zerby
dissenting.
CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES
March 25, 2013
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4. MATTERS FROM THE FLOOR
There were no matters from the floor presented this evening.
5. PUBLIC HEARING
None.
6. REPORTS AND PRESENTATIONS
A. Recognition of Service for Planning and Park Commissioners
Mayor Zerby stated the City has had the good fortune of having several Planning and Park
Commissioners serve the City for a number of years. He expressed his gratitude for the skills that the
Commissioners brought to the respective Commissions. He stated the Commissions have improved in
part because of their service.
On behalf of the Council and the residents of Shorewood, Mayor Zerby thanked David Hutchins for his
six years of service as a Planning Commissioner and presented him with a plaque of appreciation and
recognition.
Former Commissioner Hutchins thanked Council for the recognition. He stated over the six years he
served as a Commissioner he thought there was a collegial relationship between the City Council, the
Planning Commission and the staff. It made for a tremendous working environment as well as a pleasure
to serve the community. He noted that if he was not going to relocate away from the community he would
have certainly applied for reappointment to the Commission because he enjoyed serving on the
Commission. He thanked the current Council, former Mayor Liz @e and previous members of the Council,
Director Nielsen and other staff members, and the current and former Commissioners he served with.
Ed Hasek was not present at the meeting to receive a plaque of appreciation and recognition for his three
years of service as a Planning Commissioner. On behalf of the Council and the residents of Shorewood,
Mayor Zerby thanked Planning Commissioner Hasek for his service. He noted Mr. Hasek's plaque of
recognition will be mailed to him.
On behalf of the Council and the residents of Shorewood, Mayor Zerby thanked Nicholas Swaggert for
his nine months of service as a Park Commissioner and presented him with a plaque of appreciation and
recognition.
Susan Gordon was not present at the meeting to receive a plaque of appreciation and recognition for her
almost one year of service as a Paris Commissioner. On behalf of the Council and the residents of
Shorewood, Mayor Zerby thanked former Park Commissioner Susan Gordon for her service. He noted
Ms. Gordon's plaque of recognition will be mailed to her.
B. Report on Lake Minnetonka Communications Commission Activities by
Representative Joseph Huber
Mayor Zerby stated Joseph Huber, the City's representative to the Lake Minnetonka Communications
Commission (LMCC), is present this evening to give a report on LMCC activities.
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March 25, 2013
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Mr. Huber noted that prior to relocating to Shorewood from the State of Wisconsin he and his wife had
contact with City staff. In every instance they were served with competence and professionalism. That is a
credit to both staff and management.
Mr. Huber stated that serving as the City's representative to the LMCC has proven to be a more lively
experience than he anticipated. He noted his first impression of the LMCC is it is a fine organization. It is
deeply committed to the LMCC member cities and the Mediacom cable television subscribers. The
LMCC appears to be a very good value for the cost. It appears to be very well aligned with the needs of
its clients.
Mr. Huber noted that recent efforts to make LMCC programing available on the web has extended the
range of people served beyond those served by cable. He stated that recent activities at the LMCC include
franchise renewal negotiations with Mediacom. It's his understanding that the City's former
representative, Ken Hendrickson, reported to Council that the LMCC commissioned two studies for the
negotiations. He stated the LMCC has received those two reports. He noted that LMCC member cities
were also queried directly regarding their concerns and priorities. He also noted Mr. Hendrickson reported
to Council the results of the Starwood Technology technical test.
Mr. Huber explained that the second study conducted, by CGV Communications, Inc., analyzed needs
and interests in the LMCC franchise area. The findings of this study indicated that one -third of survey
respondents were dissatisfied or very dissatisfied with Mediacom service and one -half of the respondents
were dissatisfied or very dissatisfied with Mediacom about the time it took to solve outages. The study
reports document that survey respondents reported failures to Mediacom to adhere to the Federal
Communications Commission's customer service standards. At least six in ten subscribers watch some
type of LMCC programming which reinforces the LMCC's value to area residents. Eighty -one percent of
the survey respondents indicated they were aware of the LMCC programming. Forty-three percent of
non - subscriber respondents indicated they were aware of the programming as well. The report includes a
series of recommendations regarding keeping LMCC production capabilities up -to -date as it relates to
digital television and similar technology changes.
Mr. Huber stated franchise renewal negotiations are underway and results are expected from Mediacom
by the end of March. He then stated Council has been provided with a copy of the LMCC's negotiation
priority list. He went on to state that on an ongoing basis the LMCC continues to provide programming
and production services to its member cities. The services include technical advisement and service for
broadcast from member city council chambers. He noted Shorewood recently received audio testing
services and advice from LMCC staff to help improve the audio recordings of City Council meetings. The
LMCC programming staff recently worked with people at the Excelsior -South Lake Chamber of
Commerce. He stated that from his perspective no city alone could provide the full range of services that
the LMCC does for as little as what the current fees are.
Mr. Huber explained that some LMCC member cities are considering negotiating separate agreements
with Mediacom. One of the reasons for the separate negotiations is the lack of cable services provided to
lower population density areas in those communities. Those cities are thinking about applying some of
the revenues from franchise fees as a payment to Mediacom to extend cable services. He noted that
extending services is a top priority for LMCC negotiations. He stated there appears to be interest from
some cities to have a portion of the franchise fees remitted to them for whatever purpose those cities
want. He explained that from his vantage point the use of the per- subscriber fees for purposes other than
cable services or to recoup a city's cable franchise related expenses runs counter to the concept of fairness
to cable subscribers when compared to non -cable subscribers. If that were to happen it would simply
become a general city usage tax assessed solely on cable subscribers; a tax not imposed on satellite users,
CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES
March 25, 2013
Page 5 of 11
telephone users and so forth. He stated the LMCC is attempting to keep channels of communication open
with those cities.
Mr. Huber noted that at the request of the City of Victoria the LMCC will convene a committee to
examine the joint powers agreement for potential updating. He reiterated that he believes the LMCC is a
good value to Shorewood. It provides valuable services to the cities, communities and subscribers. He
also believes each member city is stronger by banding together to collaborate on the service. No city the
size of Shorewood can provide the services for as little as the small fee paid to the LMCC.
Councilmember Woodruff commented that Mr. Huber was recently quoted in the Laker Newspaper the
previous week. He stated based on Mr. Huber's comments it appears that Mr. Iluber is doing a good job
of representing the City. He thanked Mr. Huber for his efforts.
Councilmember Siakel thanked Mr. Huber for the hard work and his excellent presentation.
Mayor Zerby stated he has had the opportunity to work with Mr. Huber on the LMCC Executive
Committee. He expressed his appreciation for Mr. Huber's thoughts and wisdom he brings to that group
and for representing the City's interests well.
A. Report on the March 12, 2013, Park Commission Meeting
Park Commissioner Mangold reported on matters considered and actions taken at the March 12, 2013,
Park Commission meeting (as detailed in the minutes of that meeting).
B. Excelsior Music in the Park
Director Nielsen noted the Park Commission has recommended the City support the city of Excelsior's
2013 "music in the park" series. He explained that during the South Lake Park Summit held in February
2013 Shorewood attendees brought up the idea of rotating "music in the park" events. Excelsior already
has five Concerts in the Park events planned for this summer so maybe the rotating idea can be
incorporated in 2014. Should the City support Excelsior's initiatives in 2013 the copy of the layout of a
poster for the concert series included in the meeting packet would indicate the concerts are put on by
Excelsior and Shorewood as well as any other South Lake city that contributes.
Councilmember Hotvet expressed excitement about this idea. She stated she thought it makes sense to
work with Excelsior on this as a joint park initiative. She asked what Excelsior is asking for. Is it
sponsorship or money? Director Nielsen responded at a minimum cross marketing of the series, and
ideally some money. Nielsen stated it is his understanding that Excelsior is spending $2,000 per event. He
commented that Excelsior does allow alcoholic beverages in the park. He noted Excelsior's goal is to
break even.
Councilmember Siakel noted she attended the Summit. There was one representative from the Cities of
Deephaven and Tonka Bay, three from Excelsior, and seven from Shorewood. She stated she would like
to support Excelsior in two ways. The first is by creating a South Lake Community Ree tab on the City's
website that would bring people to information about what the South Lake communities are planning for
their parks. The other is to provide a little financial support; maybe $1,000. She noted that she thought
Excelsior has some good bands lined up for this summer.
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March 25, 2013
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Councilmember Woodruff stated he likes the idea of cross advertising community events. He expressed
his support for putting community events on the City's website. He suggested putting the poster /brochure
in the Shore Report. He noted for 2013 he is less inclined to provide any funding being there is no budget
for this. Council is already talking about the City spending money on other things that are not budgeted
for such as a community garden in Freeman Park. He stated he absolutely wants to support Excelsior this
year but not financially. Possibly next year provided it is included in the 2014 budget.
Councilmember Siakel stated she thought there are a lot of things the South Lake cities collaborate on.
She indicated she thought the Summit was a good start for parks. She stated even if the City were to
contribute $500 it would show good will.
Mayor Zerby asked Director DeJong where $1,000 could be found in the 2013 budget to support
Excelsior. Datong explained the 2013 General Fund Recreation Budget includes $14,795 for contractual
services. Not all of that is programmed out. There is $1,500 programmed out for Arctic Fever and $3900
for life guards. There are the annual Safety Camp, Movie in the Park and Fun Friday events that will use
some of the remaining funds. He thought there should be $1,000 available for the Excelsior Concerts in
the Park series.
Siakel moved, Hotvet seconded, directing Staff to put information about park and recreation events
in the other South Lake cities on the Shorewood website and authoring up to $1,000 to be
contributed to the City of Excelsior's Concerts in the Park series with the funding to come out of
2013 General Fund Recreation Contractual Services Budget.
Councilmember Woodruff noted he is okay with using existing budgeted funds for this propose. If the up
to $1,000 was needed for another purpose that activity may not be able to be done.
Mayor Zerby stated he thought this is an excellent opportunity to show cooperation between the South
Lake cities' parks organizations. He stated the $1000 would be less money than is spent on other events
such as Arctic Fever. He then stated he thought there would be an opportunity to share any funds earned
above and beyond the expenses incurred. He noted he supports the Park Commission's recommendation.
Councilmember Hotvet stated she would appreciate Council being provided with a financial recap of
Excelsior's Concerts in the Park series at the end of the season. Park Commissioner Mangold stated Mike
Filippi from Excelsior is working on that type of thing. Hotvet stated she would like that report to be a
requirement. Councilmember Siakel stated that maybe that stipulation can be made during the next
Summit scheduled for May 2013.
Motion passed 4/0.
8. PLANNING
A. Zoning Code Amendment for Zoning Permits
Director Nielsen explained that during a June 11, 2012, joint work session of the Council and Planning
Commission there was discussion about the Commission's desire to have the issue of a system of zoning
permits put back on its work program. The Commission originally discussed zoning permits in 2010 and
recommended approval of an amendment to the City Code to establish a system of zoning permits. It
failed for lack of a motion by Council. The Commission believes such a system would be a valuable tool
for staff to have. A zoning permit system would address things not covered in the Building Code yet
regulated in the Zoning Code. There are a number of things that are subject to zoning requirements that
CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES
March 25, 2013
Page 7 of 11
do not require a building permit. During the June 1 Ia' meeting Council added a number of items to the list
of items the Commission originally proposed in 2010. He noted that the Ordinance Amendment
establishing a system of zoning permits included in the meeting packet addresses the expanded list. He
also noted the Commission held a public hearing during its March 5, 2013, meeting. The Commission
voted unanimously to recommend Council approve the Ordinance Amendment.
Councilmember Woodruff stated he thought it is well known to Director Nielsen and the Planning
Commission that he has had trouble with this since it was first proposed in 2010. He noted that he thought
good progress has been made on this. He expressed concern about possibly implementing something that
from his perspective is not a positive way to ensure a problem is solved. He stated the City already has
adequate Zoning Code that addresses the problem of when a person does something that does not comply
with the Code they have to rectify it. He then stated the proposed system of zoning permits does not add
any new law; it just requires a person to get a permit from the City to do the things listed in the proposed
Amendment. He commented that he is not sure this would be any more effective than the dog license
requirement which is not being adhered anywhere near 100 percent.
Woodruff explained there are some requirements for fences in the Zoning Code. If they are to be over a
certain height a permit has to be obtained. He asked if someone would have to get a zoning permit for an
18- inch -high wire fence that would be placed around a small garden plot of flowers. Director Nielsen
responded they would not. Woodruff then asked what the definition of fence is. Nielsen stated he would
have to look up the definition in the Code, noting that had he been asked to provide that he would have
done so. Nielsen noted that fences have been covered under the building permits and the Building Code
does not cover fences less than six feet high. The Zoning Code does require permits for fences up to six
feet high. Woodruff stated if the City already requires permits for fences in the Zoning Code he asked
why this is being done. Nielsen explained to date the building permit system has been used for fences. If
this Ordinance were approved a person would apply for a zoning permit for a fence.
Woodruff asked if there is a definition for patios. Is six paver blocks in the yard to put a grill on
considered a patio? Director Nielsen stated he would have to look up the definition of patio in the Zoning
Code. Nielsen reiterated that had he been asked to provide that he would have done so.
Mayor Zerby asked Councilmember Woodruff if his concern is about missing definitions of items
proposed to require a zoning permit. Woodruff responded without definitions people are going to ignore
this. Zerby asked Director Nielsen if there are definitions in the Zoning Code for each of the activities that
would require a zoning permit. Nielsen responded he does not know. Woodruff stated Council and the
public need to know what the definitions are. Zerby stated Woodruff s questions about definitions need to
be addressed offlme.
Councilmember Woodruff reiterated he does not like the idea of a system for zoning permits.
Councilmember Siakel asked Council if it needs to give Staff direction on what definitions it wants to
review. She stated that at first she thought a system of zoning permits was little overkill. But, she has
come to realize that because there are lots in the City that are not cookie -cutter lots what is being
proposed could protect a neighbor or even the property owner themself.
Councilmember Woodruff stated what he is concerned about is that there is no clarity about what is
reasonable and what is not when requiring a zoning permit for fences, temporary signs and
patios /sidewalks. He noted that he is okay with the other ten activities being proposed.
CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES
March 25,2013
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Woodruff moved, continuing consideration of an Ordinance establishing a system of zoning permits
to a future meeting once the definitions of fences, temporary signs and patios /sidewalks have been
provided to Council.
Councilmember Hotvet asked Director Nielsen how the zoning permit system is going to be
communicated to the residents. Director Nielsen explained Staff will create a brochure similar to the one
the City of Chanhassen has. The brochure would explain what the value of zoning permits is to the
property owner. A zoning permit would be recorded and filed in the property file so there is a record for
the current or future property owner. Nielsen stated that same information found in the brochure can be
put on the City's website.
Director Nielsen explained that residents call the City regularly to find out if they need a permit to do
something (e.g., build a patio). When they are told no but there are requirements all the caller hears is
they don't need a permit.
Councilmember Hotvet stated she likes Chanhassen's brochure
Administrator Joynes suggested Council approve the components of the Ordinance with the exception of
fences, temporary signs and patios /sidewalks. Staff will provide Council with definitions for the
exceptions.
Woodruff withdrew his motion.
Siakel moved, Zerby seconded, approving ORDINANCE+ NO. 501, "An Ordinance
Amending the Shorewood Zoning Code Establishing Zoning Permits," with the exception
of fences, temporary signs and patio /sidewalks, which definitions will be clarified and
brought back for final approval at the next Council meeting.
Councilmember Woodruff stated he is a little troubled by comments previously made about people
pulling permits for these items but staff may not necessarily inspect the work to ensure compliance.
Director Nielsen clarified Staff fully intends to inspect the work to ensure compliance.
Motion passed 4/0.
9. ENGINEERING /PUBLIC WORKS
A. Approve Plans and Specifications and Authorize Advertisement for Bids for
Smithtown Road (west) Sidewalk
Interim City Engineer Hornby stated the meeting packet contains a copy of a memorandum from him
providing background about the status of the preparation of plans and specifications for the Smithtown
Road (west) Sidewalk Project. He explained the plans are close to being complete. The drainage plans are
being refined and a tree inventory and replacement plan is being developed. The plans are being prepared
in the Minnesota Department of Transportation (MnDOT) format because the City is going to partially
fund the sidewalk with Municipal State Aid (MSA) funds. The other funding source is the Trail Fund. He
stated the packet contains a copy of an excerpt of the plans. He noted the goal is to contact the City's
official newspaper about advertising for bids before the Council next meeting on April 8`l'. He also noted
the meeting packet contains a copy of a resolution approving plans and specifications and authorizing for
bids for the Project for Council's consideration.
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March 25, 2013
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Mayor Zerby stated he attended the open house held at Minnewashta Elementary School on March 13,
2013, about the project as did Councihnember Woodruff. He noted he thought it was an outstanding
event. He stated he appreciated Interim City Engineer Hornby's candor with the attendees that evening.
The residents in attendance asked a lot of good questions and Homby provided a lot of great responses.
Good notes were taken that evening. He extended his kudos to Hornby and staff, including Director
Nielsen, for the way this project has been handled. He stated he thought this has been an excellent
interactive project with residents living along that section of Smithtown Road. He noted he is comfortable
with the plans.
Zerby moved, Hotvet seconded, Adopting RESOLUTION NO. 13 -018, "A Resolution Approving
Plans and Specifications and Authorizing Advertisement for Bids for Smithtown Road (west)
Sidewalk Improvement Project, City Project 13 -04." Motion passed 4/0.
10. GENERAL /NEW BUSINESS
A. Park Commission Appointment
Mayor Zerby noted that prior to this meeting Council interviewed one applicant for the open Park
Commission seat.
Councihnember Siakel stated she thought the applicant was excellent.
Siakel moved, Hotvet seconded, Adopting RESOLUTION NO 1.3 -019 "A Resolution Making the
Appointment of John Sawtell (March 25, 2013 - February 29, 2016) to the City of Shorewood Park
Commission." Motion passed 4/0.
B. Investment Policy Amendment
Director DeJong explained that about one week ago he, Mayor Zerby, Councilmember Woodruff and
Administrator Joynes met to discuss investments. A couple of questions were raised during the meeting.
In order to address those questions and clarify the City's Investment Policy two amendments to the Policy
are proposed. The first change is to clarify that all bonds in the "A" category are considered legal. The
bond rating agencies (Standard & Poors and Moody's Investors Services) define a AAA category, AA
category and A category. The City of Shorewood can invest in investments rated "A -" for S &P or "A3"
by Moody's. BBB bonds are still considered investment grade by the investment professionals but are
excluded from the City's authorized investments.
DeJong then explained the second change clarifies what happens when an investment falls out of the
required rating after purchase. Language has been added so that Staff will notify Council of the change in
rating during the next Council meeting after becoming aware of the change. Council will determine what
course of action to take on those bonds. He noted that it may not be advisable to sell the bonds
immediately after the rating drops because it would probably lead to a financial loss. He explained part of
the City's investment strategy is to hold investments to maturity in most instances. That strategy provides
the best overall return; it is better than trying to time the market by buying low and selling high. When
bonds are held to maturity generally all principal and interest is returned. He noted the statistics in the
general bond market indicated well under one -half percent of bonds default and in most default instances
investors get at least their principal back.
DeJong stated from his perspective the concerns raised have been adequately addressed by the
amendments. Therefore, Staff recommends approval of the amendments.
CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES
March 25, 2013
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Mayor Zerby commented the conversation during the meeting was engaging. He stated during the
meeting Director DeJong was asked to put the investment report into language that would be
understandable to those who are not into day -to -day investing. He noted he supports the proposed
changes.
Councilmember Woodruff acknowledged he supports the proposed changes.
Councilmember Hotvet asked Staff if it solicits guidance from Northland Securities on this type of thing.
Director DeJong explained that the City has not used Northland's investment services in the recent past.
Northland has a branch of its organization that deals with brokerage services. That branch is separate
from the one that deals with financial services. Hotvet then asked if Staff reviews the investment ratings
on a regular basis. DeJong stated it does. DeJong explained before Staff makes any investments it checks
with the City's brokers to ensure the investments meet the City's investment guidelines. The guidelines
are updated with the brokers annually. If Council approves the amendments this evening he will send the
amended Policy out to brokers tomorrow.
Councilmember Woodruff stated when the City chooses brokers they are informed that they have to
commit to following the City's Investment Policy.
Councilmember Hotvet stated she likes the idea of watching ratings carefully.
Woodruff moved, Siake[ seconded, adopting the amended City Investment Policy. Motion passed
4/0.
11. OLD BUSINESS
None.
12. STAFF AND COUNCIL REPORTS
A. Administrator and Staff
Administrator Joynes explained that he and Director Nielsen met earlier in the day with representatives
from Volt, Inc., regarding aquatic invasive species (AIS) inspections program at the Christmas Lake boat
launch. The City will receive a contract from Volt for it providing inspection services. Volt has already
hired 15 inspectors for the launch sites it will service. He has been told the City will have first dibs on the
best quality people it has. Staff has gathered data about hours and frequency of use of the launch. Staff
will have a recommendation for Council prior to ice -out on Christmas Lake in 2013. He stated he had a
conversation with a representative from Carver County earlier in the day. The County's staff is preparing
a proposal to submit to the Carver County Board for a centralized inspection service for a number of sites.
They estimate that will be done this summer so it can be included in the County's 2014 budget. The next
meeting the Carve County representative will have will be with Joe Shneider from the Christmas Lake
Association to talk about a centralized service.
Joynes then stated that staffs from the various South Lake Minnetonka Police Department (SLMPD)
member cities are going to meet on April 15`x' to try and finalize a Uniform Animal Control Ordinance.
CITY OF SHORE WOOD REGULAR COUNCIL MEETING MINUTES
March 25, 2013
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Director DeJong stated at the dais this evening Council found a copy of an updated implementation
schedule for switching to IT services and managed phone services from HeatSeeker Technology Partners,
hie. He noted that the City's contract with Warner Connect is up on May I".
Councilmember Sandberg arrived at 8:07 P.M.
Director DeJong stated based on discussions during the March 22nd Council and Staff retreat Staff has
initiated discussions about what to do about the City -owned property located at 5795 County Club Road.
He explained the City will provide notice by April 15d' that the City will be changing its contract with the
leasing and management company that handles the lease. The current contract was signed on May 15,
2007, and the City has a 30 -day notice with that company. The tenants lease runs through June 30, 2013,
and they must be given 60 -day notice if the City intends to change the leasing arrangement. He stated
Council will need to decide if it wants to terminate the lease or change it to be on a month -to -month basis.
Councilmember Woodruff stated he assumes that if the tenants are informed the lease will be on a month -
to -month basis that the property manager will be told the same thing. Administrator Joynes stated if it
changes to month -to -month terms it will be the same for the tenant and property manager.
Administrator Joynes stated lie assumes Staff will be working with an agent to determine the best process
for selling the City's property. It may or may not be prudent to have people living in the house when it's
on the market.
Director Nielsen stated the City received quotes for the County Road 19 trail segment. The City also
received comments from Hennepin County as part of the permitting process. Staff is working on
resolving them. He noted the quotes are favorable and well within the City's budget.
B. Mayor and City Council
Councilmember Woodruff stated the Lake Minnetonka Conservation District (LMCD) Board approved a
slightly modified version of its Comprehensive Eurasian Watermilfoil and Curly -Leaf Pondweed
Management Plan for Lake Minnetonka during its meeting the previous week. He noted copies have been
sent to the LMCD member city Councils. He encouraged Councilmembers to contact LMCD Executive
Director Nybeck if they have any questions.
13. ADJOURN
Woodruff moved, Siakel seconded, Adjourning the City Council Regular Meeting of March 25,
2013, at 8:11 P.M. Motion passed 5/0.
RESPECTFULLY SUBMITTED,
Christine Freeman, Recorder
ATTEST:
Scg1t° erby, Mayor(/
.,a n I evyL !: �-
Jean Panchyshyn, Civy Cierk