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10-28-13 CC Reg Mtg MinCITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD CITY COUNCIL REGULAR MEETING COUNCIL CHAMBERS MONDAY, OCTOBER 28, 2013 7:00 P.M. MINUTES 1. CONVENE CITY COUNCIL REGULAR MEETING Mayor Zerby called the meeting to order at 7:10 P.M. A. Roll Call Present: Mayor Zerby; Councihnembers Hotvet, Siakel, Sandberg, and Woodruff, Attorney Keane; City Administrator Joynes; City Clerk Panchyshyn; Finance Director DeJong; Planning Director Nielsen; Director of Public Works Brown; and City Engineer Homby. Absent: None. B. Review Agenda Director Nielsen stated the applicant for Item 8.13 on the agenda asked that the application be continued to the November 25 Council meeting. Woodruff moved, Siakel seconded, approving the agenda as amended. Motion passed 5/0. 2. APPROVAL OF MINUTES A. City Council Work Session Minutes, October 14, 2013 Hotvet moved, Siakel seconded, Approving the City Council Work Session Minutes of October 14, 2013, as presented. Motion passed 5/0. B. City Council Regular Meeting Minutes, October 14, 2013 Hotvet moved, Woodruff seconded, Approving the City Council Regular Meeting Minutes of October 14, 2013, as presented. Motion passed 510. 3. CONSENT AGENDA Mayor Zerby reviewed the items on the Consent Agenda. Siakel moved, Woodruff seconded, Approving the Motions Contained on the Consent Agenda and Adopting the Resolution Therein. A. Approval of the Verified Claims List B. Approval of the 2014 Concessions Operation Agreement CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES October 28, 2013 Page 2 of 13 C. Adopting RESOLUTION NO. 13 -069, "A Resolution Approving Licenses to Retailers to Sell Tobacco Products for CUB Foods Shorewood, Holiday Stationstore #12, Lucky's Station LLC #7, and Shorewood Cigars and Tobacco, Inc. Motion passed 510. 4. MATTERS FROM THE FLOOR There were no matters from the floor presented this evening 5. PUBLIC HEARING A. Vacate a Portion of Rustic Way Right -of -Way Mayor Zerby opened the Public Hearing at 7:12 P.M Director Nielsen explained Margaret Prehall and her son Sam have applied for a minor subdivision of their property located at 4828 Rustic Way to divide it into two lots. As part of this request, there is a request for the City to vacate 10 feet of the right -of -way (ROW) of Rustic Way. The ROW at that location is 60 feet wide; that is somewhat consistent with the neighborhood. The City's ROW standard is 50 feet wide. There is some precedent to this ROW vacation request. The City had vacated a portion of Ferneroft Drive a few years ago because of a similar type of request. The City does not need the portion of the ROW that would be vacated. The City Engineer has indicated there are no utilities in the area. The City will not need the area for roadway or utility improvements. The paved surface of the roadway would be shifted way to the south of the ROW. Staff recommends the City keep a drainage and utility over the vacated ROW per the City's policy. The Planning Commission has recommended approval of the ROW as well as the vacation of the ROW. ROW vacations are the responsibility of the City Council. Seeing no one present to comment on the case Mayor Zerby opened and closed the Public Testimony portion of the Public Hearing at 7:16 P.M. Woodruff moved, Hotvet seconded, Adopting RESOLUTION NO. 13 -070, "A Resolution Vacating a Portion of Rustic Way (Ridgewood Road)" subject to the applicants execution of the required drainage and utility easements. Motion passed 510. Mayor Zerby closed the Public Hearing at 7:17 P.M. 6. REPORTS AND PRESENTATIONS None. 7. PARKS A. Report on the October 15, 2013, Park Commission Meeting Park Commissioner Hartmann reported on matters considered and actions taken at the October 15, 2013, Park Commission meeting (as detailed in the minutes of that meeting). She noted that during Council's work session immediately preceding this meeting Councilmember Siakel asked if it would be feasible to set up a portable ice rink on the ball field in Badger Park during the winter. She explained doing that would degrade the ball field's turf. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES October 28, 2013 Page 3 of 13 Director Brown clarified that Eddy Station has been painted. Councilmember Woodruff stated in 2007 the City contributed money toward Carver County's off -leash dog area in Lake Minnewashta Regional Park. Planning Commissioner Sue Davis (she was a Park Commissioner at that time) was heavily involved with that. He suggested the Park Commission invite Davis to come to a future meeting to discuss her experience with dog parks because she is a semi -expert in that area. In response to a question from Councilmember Hotvet, Commissioner Hartmann stated the Park Commission was advised about hockey rinks at Freeman Park by Director Brown and Director Nielsen. Hartmann noted that Nielsen provided three options of where a rink could be put in Freeman Park. Brown explained that there are watermain and sanitary sewer utilities under one area proposed for a hockey rink. Putting a rink there would drive the frost down and damage the utilities. Mayor Zerby asked if the cost to relocate the utilities would be prohibitive. Brown stated staff can make an attempt to estimate that cost. Hartmann asked where the free skating is located at Freeman Park. Brown stated an attempt was made to have a free skating area on the north side of the pavilion during the Arctic Fever event. Brown noted it was not that great. Brown explained that albeit subtle there is a necessary drainage swale that follows the north side of Eddy Station and drains that entire area. Councilmember Hotvet stated there is a warning house in Freeman Park. Therefore, she suggested there should be some type of skating there. Commissioner Hartmann concurred. Hartmann stated having something portable on the parking lot area makes sense to her, but she is not sure that would be feasible. Director Nielsen explained that discussing the location of a hockey rink at Freeman Park is a top priority on the Park Commission's 2014 work program. Councilmember Siakel stated the next item on this agenda is to talk about a monument sign for Gideon Glen. The minutes of the last Park Commission meeting indicated that there had been discussion about a budget of $12,000 — $15,000 for the sign and parking at Gideon Glen and splitting that into $9,000 for the sign and installation in 2013 and $6,000 for parking in 2014. The amount for a sign seems like a lot to her. She asked Commissioner Hartmann if the vision for Gideon Glen is mapped out well. She questioned the appropriateness of putting up the sign this year. Commissioner Hartmann stated the Park Commission thought it appropriate to put up a sign similar to those put up for the other City -owned parks. She then stated many of the Commissioners want schools and students to come to Gideon Glen for educational purposes. The Commission had discussed the issue of handling buses. The area cannot accommodate a full -size bus. There could possibly be 2 — 4 parking stalls for cars, but busses would have to park across the street. Mayor Zerby stated the Skate Park project was a joint project with other South Lake communities; they also contributed to that. When it was done there was a lot of discussion with the residents near the area. There is a senior housing development nearby. A number of people expressed concern that their private road would be used as a turnaround. He encouraged the Park Commission to reach out to the residents near the Park. Commissioner Hartmann stated because of the size of the Skate Park and the fact that skateboarding has decreased dramatically, the Park Commission has been discussing how the Park can be used more effectively. Director Brown noted that area used to be an old rest stop area that was turned back over to the City. Zerby again encouraged the Commission to involve the residents. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES October 28, 2013 Page 4 of 13 B. Gideon Glen Sign Director Nielsen explained that the Park Commission has recommended the City install a monument identification sign similar to those in the other City parks at the Gideon Glen Open Space site. He noted the meeting packet contains a copy of a drawing of the proposed sign. The sign will say Gideon Glen in large letters. In smaller letters it will read "A Conservation Open Space Project" then `City of Shorewood in Partnership with Minnehaha Creek Watershed District ". He explained that because Gideon Glen is now part of the park system, the Commission thinks it should have a monument sign. There had been two projects for Gideon Glen scheduled this year; the sign and the parking lot. He then explained that the parking lot is being reviewed by the MCWD because a little bit of site alteration will have to be done. It would not happen until next year. He noted that it will be difficult to design a parking lot that would accommodate school busses. It is a dead end driveway and there is no a cul -de -sac at the end. The Commission thinks that the buses could drop the students off and then come back and pick them up. The parking lot will end up being three gravel parking spots with some curb stone. The Commission had originally shown in the Park Capital Improvement Program (C1P) an amount of $20,000 for the sign and parking lot. The Commission reduced that down to $15,000. The estimate for the sign is approximately $7,800. The Commission has recommended authorizing a not -to- exceed amount of $9,000. The hope is to have the sign made and installed for less than $8,000. Both the sign vendor and the masonry vendor have indicated they could get the work done this year if this is approved this evening. In response to a question from Councilmember Hotvet, Director Nielsen noted the intent is to locate the sign on the southeast corner of the site. It will be perpendicular to County Road 19. Because it will be a double sided sign it will be visible from both directions. Councilmember Woodruff stated installing the sign before the parking lot work is done will encourage people to come to the site. He recommended installing the sign and doing the parking lot work in 2014. Councilmember Siakel concurred. Councilmember Siakel stated that in the past there has been discussion about mitigating the issue of some areas being eroded and about landscaping needs at the site. There appears to be some other needs beside the sign and the parking lot that should be addressed for Gideon Glen as well. Director Nielsen noted that there is a tentative meeting scheduled for November I with the MCWD. He explained the management plan for Gideon Glen includes an annual meeting between City staff and MCWD representatives. Park Commissioner Kjolhaug will represent the Park Commission at that meeting. He stated a lot of what is involved with that property is maintenance. He noted he has spoken with Engineer Homby about an engineering solution to mitigate the erosion problems. Director Brown stated Public Works has reestablished the areas that had eroded. He noted the site gets a fair amount of stormwater runoff from the area to the west. He stated that the verified claims approved this evening included an item for working with the MCWD's Prairie Restoration consultant that came in to reseed some of the site. Councilmember Hotvet stated she agreed with delaying the sign this year. Councilmember Woodruff stated it is his understanding that the MCWD is responsible for vegetation management on the site. He questioned why the City paid for the prairie restoration work. Director Brown CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES October 28, 2013 Page 5 of 13 explained MCWD was responsible for the vegetation plan and maintenance. Brown then explained the City agreed to pay for the work because the seeding was needed because of excavating the pond and maintaining the pond. Woodruff then stated he agrees that something needs to be done to mitigate the erosion problems. He noted that Gideon Glen was never intended to be a park. If the City wants to make it a park with lots of activity there then consideration has to be given to what it will take to make that happen. Councilmember Sundberg stated she supports delaying the purchase and installation of the sign until 2014. Councilmember Siakel stated she thought the sign will be beautiful. But, it may be a little early to put it in. Councilmember Woodruff asked if Hennepin County will get upset because they will not be acknowledged on the sign. Director Nielsen responded the County's contribution on the project was fairly minimal. The project was an effort between the City and the MCWD. There was Council consensus to delay the sign activities until the parking lot design has been completed. Administrator Joynes asked Director Nielsen if the sign and installation of it will have to be rebid in 2014. Director Nielsen stated Director DeJong just hold him that Council could approve the bid amount with the understanding that it will not be installed until 2014. Mayor Zerby asked if that commits the City to having the vendor who bid the work do the work. Councilmember Woodruff stated he would not consider it an issue if it cost a little more to accept the bid in 2014. He does not want to accept the bid now. 8. PLANNING A. MINOR SUBDIVISION Applicant: Margaret Prehall Location: 4828 Rustic Way Director Nielsen explained Margaret Prehall and her son Sam have applied for a minor subdivision to divide the property located at 4828 Rustic Way into two lots. As part of this request Council approved a request to vacate part of the right -of -way of Rustic Way earlier on the agenda. Both lots will exceed the minimum square foot requirements for the R -1D /S Single- ,Family Residential /Shoreland zoning district. Staff has worked with the applicant and his engineer to ensure the new lot would be buildable. One of the issues the applicant had to address is the driveway. There is a steep slope on the ROW going down to Rustic Way. Between the setting of the house and moving the driveway away from the corner of the intersection (it has to be 40 feet away from the corner of the intersection) they have come up with reasonable access to the site. Nielsen noted the Planning Commission has recommended approval of the minor subdivision. Woodruff moved, Siakel seconded, Adopting RESOLUTION NO. 13 -071, "A Resolution Approving Subdivision of Real Property for Sam Prehall for the Property Located at 4828 Rustic Way." Motion passed 510. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES October 28, 2013 Page 6 of 13 B. MINOR SUBDIVISION Applicant: Tom and Kelly Cooper Location: 22630 Murray Street This item was pulled from the agenda at the applicant's request. It will be on the November 25 Council agenda instead. 9. ENGINEERING /PUBLIC WORKS A. Accept Proposal for Wellhead Protection Plan Part 2 Director Brown explained Part 1 of the Wellhead Protection Plan (WHPP) as mandated by the Clean Water Act included reviewing the available data, how groundwater moved on the subsurface and what the chemical characteristics are for that. The WHPP Part 2 involves taking the data and applying it to the City's everyday operation. It will evaluate things such as how it is used in planning and how day -to -day operations are carried out. The memorandum authored by him and the proposal for doing that outline what has to be done. WSB & Associates' proposal identifies how it intends to carry out each task and its cost for doing that is $14,955. He noted that this mandate is not negotiable with the Minnesota Department of Health or the federal government. He also noted that staff recommends approval of the proposal. Woodruff moved, Sundberg seconded, accepting the proposal from WSB & Associates for professional services for the Wellhead Protection Plan Part 2 for an amount not to exceed $14,955. Motion passed 510. B. Accept Change Order for 2013 Pavement Marling, City Project 13 -09 Engineer Hornby stated the meeting packet contains a copy of a memorandum authored by him for Change Order No. 1 for the 2013 Pavement Marking Project for an amount of $1,383.72. That is for re- striping the parking lot for the City Campus parking areas. That striping had not been included in the original project scope. The unit price is a little higher for the Change Order because of the layout; a different type of machine needed to be used. The Change Order will increase the contract amount to $16,287.72 from the original amount of $14,884.00. Mayor Zerby stated he noticed there are new little arrows pointing to the Southshore Community Center. He thanked people for getting that done. Councilmember Woodruff asked where the funding for the additional striping will come from. Director Brown stated striping is paid for out of the same fund as other roadways improvements are paid for. Woodruff moved, Siakel seconded, Adopting RESOLUTION NO. 13 -072, "A Resolution Approving Change Order No. 1 for 2013 Pavement Marking Project, City Project 13 -09." Motion passed 510. 10. GENERAL /NEW BUSINESS A. 2014 City of Minnetonka Tree Sale Administrator 7oynes explained that in 2012 the City participated in the City of Minnetonka tree sale. The City sold 100 trees mainly to residents. The City did not participate in 2013. Staff is recommending the City participate in Minnetonka's program in 2014. The trees have to be pre - ordered now. The City will CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES October 28, 2013 Page 7 of 13 inform its residents about this program in January and February 2014 and they can sign up to purchase the trees at that time. Staff is asking Council to approve an expenditure of $7,400 for the pre - purchase of the trees; it is the same amount approved in 2012. Hotvet moved, Siakel seconded, approving the City participating in the City of Minnetonka's 2014 tree sale and authorizing staff to order trees for an amount not to exceed $7,400. Councilmember Siakel noted she totally supports participating in this program. She stated the City will be losing a lot of Ash trees in the south end of Freeman Park. She questioned if it may be beneficial to order replacement trees for the parks. She stated that maybe residents would be willing to donate a tree. Director Nielsen stated there is no money budgeted for Ash trees in 2013. A plan will be prepared for dealing with the Ash tree situation for the entire City with a concentration on Freeman Park. Director Nielsen noted that when the City participated in the program in 2012 it did order a few trees for use on public property. Deputy Clerk Panehyshyn stated she thought the City could order more than 100 trees but she has to verify that. Councilmember Siakel clarified she is talking about purchasing an extra 25 trees and publishing that there will be an opportunity for residents to purchase and then donate one of those trees. Director Nielsen noted there will be several areas for tree replacement in the City with one of them being the City Campus parking area. Administrator Joynes stated $7,400 should be enough to purchase 1.00 trees. He then stated 12 trees were purchased in 2012 for public use. He noted he thought all 100 trees could be sold this year. He stated there will be a much better tree replacement/needs plan available in 2014. Motion passed 510. 11. OLD BUSINESS A. Uniform Animal Ordinance Administrator Joynes explained the meeting packet contains a copy of a Uniform Animal Ordinance that has been discussed by the four South Lake Minnetonka Police Department (SLMPD) member cities for a number of years. The core of the Ordinance deals with nuisance animals. The impetus for this relates to a number of law suits and incidences that have occurred around the Twin Cities. The language in the member cities' ordinances was not consistent and made enforcement of those ordinances more difficult for SLMPD personnel. The SLMPD Coordinating Committee has recommended the Ordinance as a core ordinance for nuisance animals with each member city having the ability to have an appendix where specific items to that city would be identified. Staff has identified a list of sections in the City's current Ordinance that are different from the recommended Animal Ordinance. A copy of that information is included in the meeting packet. Staff is recommending some of the differences be included in an appendix. For other differences staff believes the changes are appropriate or they do not significantly change what is already in existing. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES October 28, 2013 Page 8 of 13 Joynes noted that staff is recommending Council approve the Uniform Animal Ordinance. The Excelsior City Council has already approved it and the Greenwood City Council will consider it during its November 6 meeting. The Tonka Bay City Council had a negative reaction to the Ordinance. Councilmember Woodruff stated the changes made to the Uniform Animal Ordinance since the last time Council discussed it have cleaned up a lot of things. He then stated that for the City, the Ordinance will add some control over the number of cats for the first time. He explained there is one cat boarding business in the City and the recommended Ordinance would make that business illegal. He cautioned against doing that. Earlier in the day he asked Director Nielsen to make a recommendation on how to address allowing a business to board cats in an appendix. Director Nielsen stated he has not had the opportunity to draft that language for inclusion in the appendix. He noted the way the Uniform Animal Ordinance is written would make the woman's cat boarding business out of compliance. He explained the City has a multiple dog license. The City could also require a multiple cat license. In most cases that would require a conditional use permit (CUP.) or some other type of zoning action. The City does not allow dog kennels per se. The cat boarding business is effectively a cat kennel. Adding a simple provision to the appendix recognizing multiple cat licensing would address the business issue. Mayor Zerby suggested copying the language in Section 701.06 Limitations of Numbers of Dogs which states "... unless a multiple dog license is first obtained from the City" and including that same language for cats. Director Nielsen stated he thought the new language would be something shorter than that and noted that what applies to dogs only gets a person up to four dogs. The cat boarding business does board more than four cats. Zerby asked if the City allows dog boarding. Nielsen stated that would be a zoning issue as well; currently the City does not allow dog kennels as defined by the State. Administrator Joynes asked if by the City adding cats to the section Mayor Zerby referred to and adding a clause that in the case of cats there would not be a number limit would be adequate. Councilmember Heaver asked if the SLMPD asked to add a cat clause. Director Nielsen stated no one knows where the cat restriction came from. Hotvet stated she finds that to be a little outrageous. Nielsen concurred. Councilmember Siakel noted this discussion about cat limits is about working with one resident. She asked what needs to be done to accommodate the existing cat boarding business. Administrator Joynes stated he would like to have the Uniform Animal Ordinance done. Councilmember Woodruff concurred. Councilmember Woodruff stated if the Ordinance is approved by Council now and then something is added to the appendix to address the cat boarding business at a later date with the understanding that there will not be an enforcement done on the existing business in the meantime he asked staff if that will cause any issues. Administrator Joynes stated he would be pleased if the Ordinance would be approved this evening. Councilmember Woodruff stated there have been numerous instances in the news over the last several years about cat boarders and feral cats. Therefore, he thinks there is some validity to restricting the number of cats. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES October 28, 2013 Page 9 of 13 Zerby moved, Woodruff seconded, Approving ORDINANCE NO. 504, "An Ordinance Amending Chapter 701 of the Municipal Code Relating to Animal Regulations ", directing staff to propose language to address the cat boarding business issue in an appendix, and Adopting RESOLUTION NO. 13 -073, "A Resolution Approving Publication of Ordinance No. 504 by Title and Summary." Without objection from the maker, the motion was amended to include suspending enforcement of the Ordinance on the owner of the cat boarding business until the Ordinance is amended to make the business legal. Mayor Zerby noted that the SLMPD staff put a tremendous amount of time and effort into the Uniform Animal Ordinance. He explained the model ordinance used as a template came from some organization. The member City Administrators/Manager, some legal counsel and some member City Councilmembers had the opportunity to provide a tremendous amount of input into the Ordinance. He stated he does not think any ordinance is perfect the first time around. Therefore, he anticipates changes over time. He then stated he thought having more consistent animal enforcement regulations for the four SLMPD member cities will help the SLMPD. He noted that he whole heartedly endorses the Ordinance and making it work. Motion passed 510. Mayor Zerby asked Director Nielsen if the City has to do anything to rescind existing ordinances. He asked staff to work with the City Attorney about that. 12. STAFF AND COUNCIL REPORTS A. Administrator and Staff 1. Southshore Community Center Update Administrator Joynes stated staff and Councihnember Ilotvet met with representatives from ICA Food Shelf about the ICA's possible use of the Southshore Community Center (SSCC). He is not sure ICA's needs fit with the idea of the SSCC. But, if it is to be pursued that would have to go back to the Southshore Center Advisory Committee. Joynes then stated the Minnetonka High School has put together a group of students that will work through its Vantage Program that will attempt to develop a business plan for the SSCC in conjunction with Minnetonka Community Education. Mayor Zerby stated the goal is to have the final report by early January. 2. Construction Update on Trail Projects Engineer Homby explained staff had its weekly meeting with the contractor for the Smithtown Road west sidewalk project on October 24. The contractor has committed to have forces available to move the project forward. Quite a bit of the sidewalk has been put in. Tentatively the contractor is scheduled tomorrow to start pouring between the end just to the west of the wetland down to the border with the City of Victoria. That section is formed up. After that the contractor will concentrate at the LRT Trail and go west again. The contractor is going east to west to accommodate the construction trucks in the opposite direction. Approximately 4,000 feet of sidewalk is down. There is approximately 9,600 feet of sidewalk CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES October 28, 2013 Page 10 of 13 in total that will end up being put down, so close to one half of it is down. The contractor was to be on site late today to lay out some more form work. He reviewed some of the tasks that are remaining. Mayor Zerby thanked Director Brown for his efforts to get the contractor to pick up the speed on the project. Brown noted Engineer Homby and others from W SB & Associates were present to support those efforts. Brown stated there had been some spirited discussions. Zerby then stated there had been a vehicular incident last week. He asked if staff has talked with South Lake Minnetonka Police Department ( SLMPD) personnel about having a little extra help when managing traffic flow where there are big construction trucks in the area. Director Brown noted that SLMPD has been doing speed patrol in the project area. Brown explained that with regard to the incident that occurred on October 25 there is shared responsibility between the sweeper operator and the motorist making critical errors. There was nothing the SLMPD could have done to prevent that. Couneilmember Woodruff stated staff had entailed to Council a very good memo about the status of the sidewalk project. The schedule included indicated there is some vegetation work that has to be done. That plan is to hydroseed to establish grass. He noted that a number of Councilmembers have indicated how pleased they were with the sodding that was done as part of the County Road 19 trail segment. He asked Council if hydroseednzg is an appropriate vegetation plan for the sidewalk project. He noted that he understands that sod would be much more expensive. Woodruff then stated that a while ago, Council had talked about tree replacement for the Smithtown Road west sidewalk project. He doesn't recollect any decisions being made. He asked if there is a tree replacement plan. Engineer Flomby noted there is not for this project. Homby explained that in the preliminary design it was thought that a significant number of trees would have to be removed. The majority of trees that would have to have been removed were in the curve near the wetland. Those were on City -owned property. A lot of those trees that were removed were not high quality trees. A lot of trees that were located along the right -of -way were saved. Woodruff commented that he did not want a resident whose property abuts the project to be disappointed that the City was not replacing the trees. Homby noted that an attempt was made to save a few more trees but residents asked that they be removed. 3. Federal Emergency Management Agency Disaster Update Director Brown stated the City has submitted its Federal Emergency Management Agency (FEMA) disaster request. Staff's initial estimate right after the storm event was approximately $18,000 in cost. The final amount submitted to FEMA was $29,671.42. FEMA has approved that amount. Mayor Zerby thanked Director Brown for the great work. Other Administrator Joynes explained that based on previous discussions staff has assumed that the Mill Street trail segment will not be constructed anytime during the next two to three years. The City has a pending grant for that trail segment. Therefore, the City needs to notify Hennepin County that the City is not considering constructing the trail during the next few years. He noted he will do that unless Council tells him not to. Director DeJong stated staff has been having extensive discussions about the new financial software implementation. Staff is starting to work in earnest on that project with the vendor Springbrook. Staff will begin having weekly meetings with the vendor starting tomorrow. He then stated staff is pursuing an early CITY OF SHOREWOOD REGULAR COUNCIL. MEETING MINUTES October 28, 2013 Page 11 of 13 renewal option for health insurance using the City's health insurance broker. Quotes will be requested from Healthl'armers, Preferred One and Blue Cross and Blue Shield. The City has already received Medica's option for renewal. Director Nielsen stated a public hearing notice has been sent out for the residents near the Summit Woods proposed project area. The notice advised them that the Planning Commission's meeting does not start until 8:00 P.M. on November 5 because of elections. He noted that Mayor Zerby had indicated his desire to have staff around between 7:00 P.M. and 8:00 P.M. Nielsen then stated the next Park Summit quarterly meeting will be held on November 19. B. Mayor and City Council Councihnember Siakel provided a little background on the Excelsior Fire District (EFD). The EFD's fire services are provided by a volunteer force. There are currently 46 volunteer firefighters that provide fire services for the five member cities. They operate out of two fire stations. The firefighters receive an hourly call rate of pay (the 2013 rate is $10.40 per hour) and when vested they are entitled to a per -year- of- service (PYOS) pension benefit. The Excelsior Firefighters Relief Association (EFRA) manages its Special Fund for the firefighters' pension. The member cities are required to make sure the Special Fund is 100 percent funded in order to meet the pension liabilities. There is an informal agreement between the ETD Board and the EFRA Board that the firefighters will not ask for an increase to the PYOS benefit unless the Special Fund is 110 percent funded. In 1996 the PYOS benefit was $2,600. It was increased in 1997, 1998, and 1999. It was increased to $4,700 in 2000 and it remained at that level through 2004. It was increased to $5,000 for 2005 and 2006. In 2007 it was increased to $6,250 and it has remained at that level. Now that the stock market has started to come back and the Special Fund is 118 percent funded the firefighters are asking for an increase in their benefit. Councilmember Siakel noted the increase in the PYOS benefit and funding of the Special Fund in excess of 100 percent were the main topics of discussion during the October 23, 2013, joint work session of EFD Board and EFRA Board. There was discussion about implementing a process that would allow the firefighters to get an increase in the PYOS benefit contingent upon the funding level being at a certain level. She also noted that she thought EFD Board Chair Miller did a very good job of running the work session. She explained that Chair Miller identified five EFRA benefit principles. They are as follows. 1. The EFD should be competitive so it can attract and retain high quality personnel. (The EFD relies on volunteers that live with a radius of close proximity to the fire stations. Firefighters are 60 percent vested after 10 years of service and are fully vested after 20 years. The fact that the firefighters have to negotiate with 25 council members for an increase to their PYOS seems arduous.) 2. The PYOS benefit should at a minimum be in pace with inflation over time. (The 2007 PYOS of $6,250 would have to be $7,111 now just to have kept up with inflation based on the CPL) 3. Adequate controls over benefit increases should be put in place. (This includes doing an annual evaluation and modeling, and consulting with professional pension managers.) 4. The need for mandatory contributions from the EFD member cities in order to bring the Special Fund to a level where it is 100 percent funded should be minimized. (Because the stock market took a serious dive in 2008 the member cities had to make mandatory contributions in 2010 — 2013. Over the history of the Special Fund very few mandatory contributions have been necessary.) CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES October 28, 2013 ,Page 12 of 13 5. A financial model for long-term planning should be developed. The proposal discussed for a benefit policy during the work session was an increase of 3 percent when the coverage ratio is 115 percent, a 4 percent increase when the ratio is 120 percent, and a 5 percent increase when the ratio is 125 percent. An increase of 4 percent for 2014 — 2017 was also discussed to recover for no increases since 2007. The proposal was to increase the PYOS benefit by $250 in 2014. Siakel reiterated that she thought Chair Miller did a very good job of leading the meeting. She stated that EFD Boardmember Fletcher from Greenwood suggested some of the funding ratios. She thought the majority of those present at the work session agree with the recommendations. Siakel stated she thought it was important to share the big picture with Council. She asked the other Councilmembers to tell her what, if any, concerns they have about what is being proposed. She stated from her vantage point what the firefighters are asking for is completely fair. She noted that if the EFD were to be a full -time force it would cost the member cities at least triple the amount. She expressed support for agreeing to an increase in the PYOS benefit now and putting a process in place for consideration of future increases. Siakel stated a number of times she has heard during Council work sessions that when the bonded debt for the public safety facilities is paid off there will be a reduction in yearly expenses for the facilities of about $510,000 starting in 2023. She asked if that amount is for all five member cities. She noted that the City's portion of the fire services budget for 2014 is 38.48 percent. Councilmember Woodruff stated he is 100 percent sure that the City's portion of that reduction is $500,000. Administrator Joynes concurred. Woodruff stated he also attended the joint work session and he thought there was a lot of good discussion. He complimented Chair Miller for preparing the EFRA portfolio spread sheet that projects the impacts of various increases. He commented that he had questions and criticisms about various things. FIe stated the EFRA Board can increase the PYOS benefit at any time without EFD Board approval and noted the EFRA Special Fund is the EFRA's money. The EFRA makes the decisions about how it invests its assets. He expressed a little concern that the 115 percent ratio for the Special Fund is too low to trigger a 3 percent PYOS benefit increase. He stated that although the EFRA owns the money the member cities own any shortfall. And, the City owns half the shortfall based on the EFD funding formula. Councilmember Siakel clarified the City owns about 38 percent. She asked what the City's portion of the mandatory contributions have been the result of the market downturn. It's her recollection that EFD Boardmember Fletcher stated Greenwood's portion was about $13,000. She stated she thought a large portion of the mandatory contributions were paid for out of EFD operating fund reserves. She noted that over the many years of the EFRA's existence the cities have not contributed a lot to the fund for pensions. Councilmember Woodruff reiterated when there is a shortfall in the EFRA fund for pensions the cities have to cover that. The firefighters can increase their PYOS benefit and when there is a shortfall the member cities have to make that up. He explained that nonnally he does not have a problem with that. But, when the value of the EFRA's investments is suddenly impacted by market conditions it is out of the EFRA's control yet the cities have to make good on it. He noted he wants a greater buffer than the 115 percent ratio for the start of increasing the benefit. He stated when he asked a question he was told by those in the know that the PYOS benefit is not an attraction issue when recruiting firefighters. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES October 28, 2013 Page 13 of 13 Councilmember Siakel stated in previous meeting them was discussion about what is needed to attract and retain firefighters and also about benefit increases. Mayor Zerby stated he believes retention is equally as important as recruitment. It should be easier to keep employees than it is to recruit new ones because of the experience existing firefighters have. Be then stated it is the City's choice to get their fire services from a volunteer force. From his perspective, the only way the City can afford to get those services is through a volunteer force. He went on to state to convert the pension model to a different model would present challenges. He also stated that for those firefighters who are very tenured with the District it is a small price to pay. He noted he thinks it is appropriate to give the firefighters an increase. Councilmember Woodruff stated the League of Minnesota Cities has a set of legislative policy proposals. He thought the emails have been sent to Councilmembers. He noted comments on there are due on November 1. He asked Councilmembers to copy him on any comments they have. Mayor Zerby asked staff to comment on them as well. Councilmember Sundberg asked if each member of Council gives their own personnel opinion. Mayor Zerby responded that is the way it has been done in the past. Mayor Zerby stated he attended a Lake Minnetonka Communications Commission (LMCC) meeting on October 15. He reported on that meeting. A small committee had been formed to look at production services costs. That equates to what the LMCC would charge affiliate member cities for services (cities that have left the LMCC joint powers organization to directly franchise with Mediacom yet want to use LMCC services). The LMCC adopted the fee for service scheduled recommended by that small committee. There was some discussion about distributing the LMCC reserve balance amongst the LMCC member cities. The cities leaving the LMCC want to deplete the reserves and have it split between the 17 member cities proportionally by weight. That discussion was postponed pending Legal advice by LMCC because there is language in the LMCC joint powers agreement (JPA) that discusses that directly. Some of the member cities have approved the amendments to the JPA. Some cities have not taken action on them yet. Some of the cities who have submitted their notice to withdraw from the LMCC have made their withdrawal contingent on the approval of the amendments. That is a very tumultuous issue. 13. ADJOURN Hotvet moved, Siakel seconded, Adjourning the City Council Regular Meeting of October 28, 2013, at 8:34 P.M. Motion passed 5/0. RESPECTFULLY SUBMITTED, Christine Freeman, Recorder ATTEST: o rby, May Je n Panchyshyn, City Clerk'