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04-28-14 CC Reg Mtg Min CITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD CITY COUNCIL REGULAR MEETING COUNCIL CHAMBERS MONDAY, APRIL 28, 2014 7:00 P.M. MINUTES 1. CONVENE CITY COUNCIL REGULAR MEETING Mayor Zerby called the meeting to order at 7:00 P.M. A. Roll Call Present. Mayor Zerby; Councilmembers Hotvet, Sundberg, and Woodruff; Attorney Keane; City Administrator Joynes; City Clerk Panchyshyn; Finance Director DeJong; Director of Public Works Brown; and, City Engineer Hornby Absent: Councilmember Siakel B. Review Agenda Sundberg moved, Woodruff seconded, approving the agenda as presented. Motion passed 4/0. 2. APPROVAL OF MINUTES A. City Council Special Meeting Minutes, April 14, 2014 Woodruff moved, Sundberg seconded, Approving the City Council Special Meeting Minutes of April 14, 2014, as presented. Motion passed 4/0. B. City Council Work Session Minutes, April 14,2014 Woodruff moved, Hotvet seconded, Approving the City Council Work Session Minutes of April 14, 2014, as presented. Motion passed 4/0. C. City Council Regular Meeting Minutes, April 14,2014 Woodruff moved, Zerby seconded, Approving the City Council Regular Meeting Minutes of April 14, 2014, as presented. Motion passed 4/0. 3. CONSENT AGENDA Mayor Zerby reviewed the items on the Consent Agenda. Hotvet moved, Woodruff seconded, Approving the Motions Contained on the Consent Agenda and Adopting the Resolutions Therein. A. Approval of the Verified Claims List B. Authorization to Hire Two Seasonal Public Works Employees CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES April 28, 2014 Page 2 of 15 C. Adopting RESOLUTION NO. 14-027, “A Resolution Establishing Policy for Sign Retroreflectivity Assessment and Management” subject to changing Article IV, Paragraph 4, Sentence 3 to read “The city completed its sign inventory in 2013”. Motion passed 4/0. 4. MATTERS FROM THE FLOOR Alan Yelsey, 26335 Peach Circle, noted he has lived in Shorewood for 30 years. He explained he is representing a group of determined people who are concerned that the City does not have a policy regarding protecting water. The group believes the City needs to have a comprehensive policy that states how and when chemicals will be used in and by the City and how waste will be dealt with in the City; not only for the City, but also for businesses and consumers. There are towns all over the United States, including the City of Edina, that are far ahead of the City when it comes to adopting such comprehensive policies. He requested residents be given the opportunity to provide input on a policy. He stated from his perspective he had a very negative interaction with City staff regarding his request that the City consider policies. His request was rejected outright. He came before Council during August 2013 with his request. To date no action has been taken. Mr. Yelsey stated Shorewood residents want input into what goes on related to the use of chemicals and toxic materials. They want a comprehensive study and policy and decision making process about what to do. More research needs to be done. The group has done considerable research and it will not tolerate the use of triclopyr in the City without further input and consideration from the residents. The group believes that any use of chemicals in the City should be taken very seriously. They believe in a minimalist approach. He noted that Edina and other communities have implemented reasonable policies. The policies do not prohibit any use of chemicals, but are to some extent restrictive especially when little is known about a chemical. The policies apply to residents, people who apply the chemicals commercially and the cities themselves. The thing that really got his attention and the group’s attention is the City is using the chemicals without input from residents. They have asked in a letter to City staff that the City create a vehicle for residents to have input and to research the impact of chemicals. To date he believes that request has been rejected. He noted that the group is asking for a fast track review of advanced policies that other municipalities have. He explained the City is located in a very lowland area and there is a tremendous amount of stormwater that flows through it carrying particulates around. The aquifers and private wells are in a very delicate position of possibly being damaged. If the drinking water in the City is damaged the property values decline, the costs are incredible and the toll on people is amazing. He stated the group has researched Parkinson’s disease and multiple sclerosis and there are links to some of the chemicals he is talking about with those autoimmune diseases. He stated the group wants the drinking water to be protected and it does not think the City is taking the proper precautions. The group will act very quickly if the City does not act on the residents’ behalf or at least involve residents in the Council and staff decision making process about policy for the City and policy to help protect the residents from themselves. He then stated the City has used triclopyr in parks and used it in ways that he does not think were absolutely necessary (e.g., the removal of buckthorn). That chemical has a history of potential damage. Only one half of the ingredients in that product are known. The other half are undisclosed which is common for pesticides and herbicides. The people who suspect what the undisclosed ingredients are believe they are quite hazardous as well even in very, very small quantities. The idea that parts per million CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES April 28, 2014 Page 3 of 15 cannot hurt a person is not true. There is no medical science that supports that. He noted that he cannot think that there is anything more important for Council and staff to be doing than putting policies in place that would help protect drinking water. He noted that he rejects everything in the letter he received from Director Brown. He stated he could walk through that point by point. He then stated he thought the letter was non participative. He asked Brown if he wrote the letter himself or did someone participate in writing it. Brown clarified he wrote an email to him. Mr. Yelsey stated he is going to present his response to what Director Brown sent him. Mayor Zerby stated it would be more productive for the City to accept the Mr. Yelsey’s counterpoints in writing. Mr. Yelsey stated he needs Council and staff to hear that the issue is serious enough and that the City’s response was unacceptable. He then stated he does not want the drinking water in the City to be poisoned and particularly by City staff. He went on to state that if Council and staff want to see a massive outpouring of residents in the Council Chambers he asked that residents give them two to four weeks’ notice and they will come and demand Council direct staff to take action. Or, proactive action can be taken and a mechanism created to allow the residents to have their voices heard and to have reason and science applied to how chemicals are used. Councilmember Sundberg thanked Mr. Yelsey for keeping the pressure on Council and staff about this, while noting she does not think anyone on Council needs any threats about it. She stated she thought this is a very important issue for the City to look into. She noted that she needs to learn more about the issues. She stated from her perspective this couples with the City’s whole approach to the environment – energy use, chemical use and so forth. Protecting drinking water is a national issue. She stated she does not know what the next step should be. She then stated she supports Mr. Yelsey’s suggestion to solicit more input from residents and to move quickly on this. Councilmember Woodruff stated he does not remember seeing the correspondence from Director Brown to Mr. Yelsey. He suggested Council and staff discuss this issue in a work session before deciding on what direction to take. He stated he does not have enough knowledge to make any decisions about what to do about the issue. Councilmember Hotvet stated she supports discussing this in a work session in the near future incorporating all of the topics Councilmember Sundberg brought up. Mayor Zerby stated he also supports discussing this in a work session and noted that Mr. Yelsey and the public will also be invited to it. He thanked Mr. Yelsey for bringing this to Council’s attention again. Mr. Yelsey stated everyone needs to be educated about the use of and impact of chemicals. He then stated protecting pollinating bees is also part of this effort. The chemical he is talking about is also on the list of chemicals that damage bees. Mayor Zerby asked Mr. Yelsey if he or his group is involved with working with state and federal legislatures on this issue. Mr. Yelsey responded he is involved with a group that is crafting a draft policy set for communities around the country. They have looked at other very good policies and he believes Council should look at others as well. There is no need to start from scratch. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES April 28, 2014 Page 4 of 15 Councilmember Woodruff asked who makes up the group Mr. Yelsey refers to. Mr. Yelsey stated it’s a group of about twenty residents in Shorewood and he is involved with a national group as well. Woodruff stated he would like to be provided with the name of the national group. Councilmember Sundberg asked that be forwarded to all of Council. Mr. Yelsey stated he will do that along with his perspective on the items in Director Brown’s email. Mayor Zerby asked him to send it to Administrator Joynes and him. Alan Dvorak, 5925 Cathcart Drive, noted that he and his wife try to keep their yard as organic as possible as do a lot of their neighbors. He stated that last year a chemical truck was being driven down Cathcart Drive and chemicals were being sprayed along the right-of-way (ROW). His wife chased the truck driver down and the driver told her he was doing what he was hired to do. The truck driver stopped spraying and returned later in the day only to see his wife outside and he drove away. The driver came by again and did not see his wife so he finished the spray job which he observed. Those chemicals don’t just stay in the ROW. The use of chemicals is very concerning to he and his wife; the same goes for a lot of people. He encouraged Council to take what Mr. Yelsey said very seriously. Residents have a right to know if chemicals are being sprayed and they have a right to ask that it be stopped. Peter Holmberg, 5955 Cajed Lane, noted he was present to talk about the new Smithtown Road west sidewalk that was constructed last year which he was pleased about. He received a letter from the City indicating that some remediation work was going to be done in the project area. He stated he has lived near the corner for 30 years. Because of the recent heavy rains he has observed the most flooding ever. He explained the stormwater flows down Beverly Drive down Cajed Lane. It flattens out at the corner and the stormwater ponded up significantly at the ramp at the end of the sidewalk. It does not flow to the catch basin because it has to flow past the ramp and up to the catch basin. It’s his understanding that one of the catch basins was eliminated on the Cajed Lane side and it would have helped catch some of the stormwater before it reached the ramp. He expressed concern that it will be a constant mud hole there because the stormwater brings a lot of sand and mud with it. When snowmelt refreezes there is ice at the end of the ramp. Mr. Holmberg stated he hopes the City does not use the contractor that built the sidewalk again. There were 80° summer days in 2013 when no one was working on the project. He heard the penalty clauses in the contract were not strong enough to get the contractor to work on the project. In the fall there was a scramble to get the project mainly done. He noted he works commercial construction and therefore knows what a construction crew can get done in a very short amount of time. He stated from his perspective that was one of the worst projects he had seen done in 30 years. He clarified it’s a wonderful sidewalk; the entire concept was good. People are happy with the improvements. But, from his vantage point the City is not getting what it paid for. The project area has not been graded correctly. He stated he hopes the corner can get fixed. Mayor Zerby thanked Mr. Holmberg for making Council and staff aware of the issue. Engineer Hornby stated he had been to the area earlier in the day and he had someone taking photographs of the problem drainage areas. He explained that some of the issues are related to erosion control. As an erosion control measure several of the catch basins have a sheet of geotextile fabric in them. When there is a significant rain and sediment the fabric plugs up and backs up water. Staff did contact the contractor that morning and asked the contractor to take care of those issues. The contractor had someone out there in the afternoon. The last email he received from the contractor which was around 4:00 P.M. indicated the stormwater was flowing down at the two worst areas where ponding was being created in a couple of yards. The contractor is supposed to check all of the catch basins. There are a couple of pedestrian ramps that needs more grading around them to get the water off of the roadway behind the ramp into a ditch and to the catch basin. That will be addressed with the final punch list. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES April 28, 2014 Page 5 of 15 Mayor Zerby stated the recent heavy rain is a good test of the system and it points out issues that need to be addressed. Engineer Hornby stated what was used for an erosion control measure is not working out very well. Staff is in the process of getting that addressed. 5. PUBLIC HEARING None. 6. REPORTS AND PRESENTATIONS A. Review of 2014 Assessments by Hennepin County Assessor Michael Smerdon Michael Smerdon, an appraiser for Hennepin County, noted he had received a list of questions that Council wanted answered. He stated he will answer them this evening. He noted the 2014 assessment process will be used to calculate taxes payable in 2015. Mr. Smerdon explained the overall approach for establishing residential market values. Soon after the appeals are over this year the appraisers will start reevaluation. By state law the appraiser must review 20 percent of the properties in a city each year. The review includes looking at characteristics to make sure what is being used in the model is actually what’s there. In the fall they get the permits from the city and they go out and look at everything they think would have changed the value of the property. After that they analyze all of the sales. For taxes payable in 2015 they take the sales from September 1, 2012, to October 1, 2013. That is the sales ratio period set by the Minnesota Department of Revenue (MDOR). Property values will be set on January 2 each year. In the spring everyone gets their valuation notices. Property owners can appeal their valuations. When people call to appeal an appraiser will ask the property owner why they think their valuation is wrong. If an appraiser has not been through the house recently they will inspect the house to ensure the characteristics are correct. The inspection takes about 10 minutes. The appraisal process is the same as the one used in previous years. The same process is used for all cities in Hennepin County. Mr. Smerdon noted for property taxes due the current year there is nothing an appraiser can do about the taxes. Councilmember Woodruff stated he provided the questions. He then stated that he had heard for a number of years that there is a MDOR mandate that the assessed value be 90 percent of the market value. Mr. Smerdon explained the MDOR specifies the median sales ratio must be between 90 percent and 105 percent for the city. The state also requires the assessment has to be 100 percent of the market value on January 2. Mr. Smerdon noted he spends about one-half of his time educating property owners about the assessment and valuation process. Mr. Smerdon explained that the overall increase for Shorewood’s residential assessed values was 7.6 percent. It was 4.9 percent for off-lake properties and 9 percent for on-lake properties. The increase was all over the place for different cities. The City of Woodland lost a little value for off-lake property values. The City of Excelsior’s off-lake values went up 23 percent. For the City of Wayzata’s on-lake values remained relatively flat. The City of Minnetonka Beach’s on-lake values went up close to 28 percent. The CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES April 28, 2014 Page 6 of 15 values are due to market demand. Excelsior’s values increased in part because of the downtown area and walkability. Mr. Smerdon then explained there are statistical measures used to grade assessments. One of them measures how far away assessed values are from the median. A market conditions adjusted price (MCAP) is compared against the assessed value to get a ratio. The ratio has to be between 90 – 105 percent. The median ratio for the City has to be that. The price related differential is used to ensure the assessments are neither regressive nor progressive; so lower value properties are valued at the same rate as higher value properties. Mr. Smerdon stated the assessors do not look at the change in assessed value as a goal. For 2014 the market in 2013 was followed to ensure assessment values were at the target ratio. Mr. Smerdon explained the MCAP is the adjusted sales price that is used in all sales ratios. The MCAP is the same as a time adjustment. If it is determined the market is going up 10 percent in a year and a house sells in June then the following January property should be worth 5 percent more based on the market increase. Councilmember Woodruff asked how an increase in market value is determined. Mr. Smerdon responded that is done by the MDOR. MDOR does a statistical analysis based on a 21-month study. Woodruff asked if that has changed. Mr. Smerdon explained the MDOR has been doing that for a couple of years; he did not think MDOR used it five years ago. The use of it came about because one city wanted to lower the values because they saw the market going down faster than what the traditional sales analysis showed. The MDOR analysis works in both an upward and downward market. It is supposed to take all of the sales and normalize them to the January 2 date. The market value is different for different cities. Mr. Smerdon stated that for 2014 assessment the on-lake adjustment was 12.3 percent annually and the off-lake adjustment was 9.48 percent annually. If an off-lake house sold in January 2013 in order to make it equal to January 2, 2014, the sale price would have to be increased by 9.48 percent. That would be the number used for a target in the sales ratio. Councilmember Woodruff stated he has never participated in this type of discussion. He then stated Council has delegated to Hennepin County the responsibility for assessments. Mr. Smerdon explained the Hennepin County Assessor’s Office has received a lot of calls this year about increased assessed values. The values are all based on sales from the previous year. As an example a property sold in September 2013 for $441,000. After applying the market conditions adjustment the January 2, 2014, the market value would be $454,936. That is 100 percent of market value. The building value is calculated in the County Assessors computer system and it comes out to be $277,000. To get to the target sales ratio of 91 percent the indicated land value would be $137,000. If the land value is an increase over the previous year’s land value it is applied to everyone in the neighborhood. If there are multiple sales in the neighborhood the median land value increase is applied to the neighborhood. He clarified neighborhoods are not necessarily geographical neighborhoods. They are areas within a city that react the same to the market. Mayor Zerby stated it seems values in Shorewood are close to what they were in 2008. Mr. Smerdon stated he does not know that history and noted that this is the first year he is doing residential assessing. Councilmember Woodruff thanked Mr. Smerdon for answering his questions. He stated this evening single-family residential properties were discussed. There are different percentages for multi dwelling CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES April 28, 2014 Page 7 of 15 units and commercial properties. He encouraged residents to come to the May 5 open book meeting if they want to talk to an assessor about the estimated market value of their property or to call the assessor. The open book meeting is first come first served. Mr. Smerdon stated in years past it has not been an issue; there have been two assessors present. Woodruff stated he had received a call from a property owner on the northeast side of the City whose property value went up 25 percent and there had been no change to that property. Another property owner’s value went up 6 percent and there had been no change to the property. In the area where he lives it seems the common increase was around 19 percent while some are in the 5.4 percent range. Mr. Smerdon encouraged property owners who may want to appeal their estimated market values for 2015 to call an assessor before the meeting. If an assessor has not inspected the house for 10 or 15 years that would be step number one. The phone number is on the valuation notice; it is (952) 249-4641. Mayor Zerby stated Hennepin County Assessor’s Office is hosting an open book meeting on May 5 from 5:00 – 7:00 P.M. at City Hall. Mr. Smerdon stated he thought there will be three or four assessors present at the open book meeting; one for commercial and two for residential. Mayor Zerby asked Mr. Smerdon to describe what the next step is after an appeal is made. Mr. Smerdon explained if an inspection is needed an assessor will do that. The assessor will review the file. If the assessor decides there is reason to reduce the value the assessor will contact the property owner and tell them what they think the new estimated market value should be. If the property owner agrees with the new valuation the assessor will send a new valuation notice. If the property owner and assessor still disagree the property owner has the right to file an appeal with the Hennepin County Board of Appeals; it is a more formal appeal process. That Board is comprised of seven people with a background in real estate. Councilmember Woodruff stated if property owners do not take advantage of the appeal process it will be too late to do anything about their property valuation in 2015 when they receive their tax notice. Mayor Zerby stated a resident in the audience stated his off-lake property value increased 9.4 percent. That property in Boulder Bridge has deeded access to the lake. The property owner wants to know if his property has the same percentage increase as an on-lake property. Mr. Smerdon stated because the property has deeded access it is considered an on-lake property. Zerby then stated another person who owns a property on Enchanted Island asked if a foreclosure sale sets the sale price. Mr. Smerdon explained that according to the MDOR foreclosures are not included in the sales study and noted that assessors look at each property sale individually. There are auction properties that rise to the market value. Mayor Zerby thanked Mr. Smerdon for coming. 7. PARKS 8. PLANNING A. Minor Subdivision Applicant: Janie Korin Location: 6135 Cathcart Drive CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES April 28, 2014 Page 8 of 15 Administrator Joynes explained that Janie Korin, 6135 Cathcart drive, proposes to subdivide her and her husband’s property and has submitted an application to do so. The property is located in the R-1A, Single-Family Residential zoning district and contains approximately five acres. The applicant proposes to divide the property into two lots. The lot with the applicant’s house on it would be 87,106 square feet. The vacant lot would be 113,335 square feet with a large amount of it being occupied by a wetland area. The applicant will have to pay a $5,000 park dedication fee and $1,200 local sanitary sewer access charge for the new lot. As a condition of approval the applicant has to do a verification of the delineation in May. The current delineation is more than five years old. The recording of the resolution has been given 60 days so the applicant has time to get the delineation verification done. The Planning Commission has recommended approval of the subdivision on a 4/0 vote. Mayor Zerby noted the applicant is present this evening. Planning Commissioner Labadie stated both of the lots would significantly exceed the minimum lot size of 40,000 square feet for the R-1A zoning district. The wetland delineation had been done in May 2004 and the Minnehaha Creek Watershed District does not accept delineations older than five years. Mayor Zerby stated he thought this would be a good use of the land. He thanked the Planning Commission for considering this item. Woodruff moved, Hotvet seconded, Adopting RESOLUTION NO. 14-028, “A Resolution Approving Subdivision of Real Property for Steve and Janie Korin for the Property Located at 6135 Cathcart Drive” subject to the wetland delineation and corresponding conservation easements being verified as soon in May as the Minnehaha Creek Watershed District will accept the delineation and to recording the resolution within 60 days of Council approval. Motion passed 4/0. 9. ENGINEERING/PUBLIC WORKS A. Authorize the Expenditure of Funds for Two (2) Single Axel Dump Trucks Director Brown stated the meeting packet includes a copy of a memorandum from him which outlines all of the costs for two replacement single axle dump trucks. As noted in the memorandum there are several components. The total cost for each truck is $155,491.83. The trade in values of the existing trucks will be traded off to the dealer. The trucks were discussed during the 2015 capital improvement program (CIP) approval process. The CIP has slated $330,000 total for the two trucks. Staff is seeking authorization to execute all of the proposals and contracts for the truck components and to spend $310,983.66. The trade in values of the existing trucks will be traded off to the dealer. Councilmember Woodruff asked at what point should the City start considering alternate fuel vehicles such as natural gas vehicles. Brown responded he had not considered that but can do so. Woodruff stated it would likely add a little to the cost and hopefully it would be a significant savings over a fifteen-year life cycle. Councilmember Sundberg stated compressed natural gases have gotten to be very economical and there are incentives for those buying type of vehicles. She also recommended looking into them. Sundberg moved, Woodruff seconded, approving the expenditure of funds in the amount of $310,983.66 for two single axle dump trucks. Motion passed 4/0. 10. GENERAL/NEW BUSINESS A. Letter of Support for Legislative Bills Related to Bees and other Pollinators CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES April 28, 2014 Page 9 of 15 Mayor Zerby stated the meeting packet contains a copy of two draft letters expressing Council’s support for legislative bills related to bees and other pollinators. The bills are up for vote in the Legislature on April 29, 2014. Administrator Joynes stated if Council approves the letters they would be sent to the Legislature tomorrow morning. Hotvet moved, Sundberg seconded, authorizing the two letters of support for legislative bills related to bees and other pollinators be sent to Representative Cindy Pugh and Senator David Osmek. Councilmember Woodruff stated there are three bills. Bill SF2695 for the House of Representatives and HF2798 for the Senate are the same in text. Both bills refer to HF3172; a bill he does not support. It establishes a process to compensate the bee owners if their bees die because of pesticide poisoning. He expressed concern that the taxpayers would end up reimbursing bee owners for loss of bees. He could support endorsing SF2695 and HF2798 without the language relating to HF3172. Councilmember Sundberg stated sometimes when there are no negative impact ramifications to doing something harmful behaviors do not change. Therefore, she can support bill HF3172 even though it may be in limbo. Motion passed 3/1 with Woodruff dissenting. B. Consideration of Establishing a Four-Year Term for Mayor Mayor Zerby noted that the meeting packet contains a copy of a memorandum and ordinance amendment related to changing the term of mayor from a two-year term to a four-year term. Administrator Joynes stated during the February 2014 Council and staff retreat there was discussion about changing the ordinance that deals with the term of the mayor. The copy of the ordinance amendment would change the term to a four-year term and the effective date of the change has been left blank for Council to fill in. The change has to be effective after the next election. Councilmember Sundberg asked what the term for mayor is for the local communities. Administrator Joynes explained the trend over the last decade has been to move to a four-year term. It is perceived as being onerous to run every two years. He thought an equal number of cases could be found on both sides. He has been involved with a few cities that have made such as change to be consistent with council member terms. Councilmember Sundberg stated she supports the change. If a four-year term makes sense for a council member it should be the same for the mayor term. Councilmember Hotvet concurred. Councilmember Woodruff stated he supports the change and thought there should be discussion about the effective date. Mayor Zerby stated he supports the change. He noted that as a new Mayor he felt having to possibly run again without having two years of experience as Mayor did not make sense. He also noted it is a weak- mayor position; he gets one vote just like the other four members of Council. He stated in a community the size of Shorewood it is sometime difficult to get people to run for office. People may be more CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES April 28, 2014 Page 10 of 15 interested in running for the mayor seat if it were for a longer term. He recommended it be effective for the 2016 election for mayor. Councilmember Hotvet stated at the two-year point a new mayor is just getting settled in. Councilmember Woodruff stated he could support that. Sundberg moved, Hotvet seconded, Approving ORDINANCE NO. 512, “An Ordinance Amending Chapter 106 of the Shorewood City Code Relating to Biennial Elections Effective with the 2016 Biennial Election.” Motion passed 4/0. C. Purchasing Card Program Director DeJong noted that the meeting packet contains a copy of a proposal for purchasing cards for the City. He explained that City staff has not used credit cards or purchasing cards in the past. Credit cards can be problematic for cities because the City would be extending credit and it could potentially end up having to pay for interest. Per state statute a city is limited to only paying interest on bonded debt. City staff and Councilmembers have had to use their personal credit cards for purchases they have made individually or for things like travel arrangements or online program registration. Staff assessed a couple of different programs. Staff is recommending is a program supported by the National League of Cities through PFM Financial Services, LLC, an investment consulting firm. The recommended program allows the City to place very strict limits on how much a card holder can charge, where they are able to charge and the dollar limit on individual charges. The program offers a cash advance capability. Staff intends to lock that down as tight as possible either by eliminating it directly up front or by be placing restrictions on each card. The program allows for central administration without having to know the answers to personal security questions. Transactions on each individual can be reviewed centrally. The program provides for up to $100,000 in fraud protection provided the City has five active cards. Staff anticipates that each department director would get a card and there may be a couple more available based on specific staff roles and contingent on approval from Administrator Joynes and the department directors. The drawback to the program is automatic withdrawal payment from the City’s bank account for the full amount of the combined charges is required before the first Council meeting each month. The program is th set up with a closing date of the 28 of the month and the payment withdrawal is made within seven days th of that. The latest withdrawal date would be the 7 of the following month. In order to participate in the program staff would need an additional delegation of authority from Council for paying the bills. There is an existing delegation of authority for bond payments that must be made on a timely basis and for months when a Council meeting is cancelled and there is not time enough to get authorization to pay vendors within the 35 days mandated by state statute. DeJong noted staff recommends Council adopting the resolution related to the purchasing card program. Councilmember Sundberg asked what staff’s recommendation is about oversight if Council delegates the additional authority. She stated she generally supports this but she does not want there to be months before it is determined that in error someone used the card inappropriately. Director DeJong explained it would be the same process as the one currently used. That is, all charges would be approved by the department director prior to payment. Per the resolution card holders would be required to turn in all of their charge receipts by the first of the month or the charges could become their personal liability. The receipts would be approved by the department director prior to the date the payment is due. Sundberg CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES April 28, 2014 Page 11 of 15 asked if Council would be presented with a list of the charges even though that would be after the fact. DeJong responded that would be done for the second Council meeting of the month. Councilmember Woodruff stated he shares Councilmember Sundberg’s concern about the oversight. He suggested their needs to be a policy card holders acknowledge when they get a card which clearly states what the rules are. Maybe that could be a codicil to the personnel manual. Mayor Zerby noted that Director DeJong silently affirmed that with a nod of his head. Woodruff clarified that is not needed this evening but it needs to be approved by Council before cards are issued. Mayor Zerby stated he assumes approval of department director charges would be approved by the city administrator. Director DeJong confirmed that. Zerby then stated he assumes Council approves the city administrator’s charges after the fact. Councilmember Woodruff stated that he would charge the finance director with challenging charges made by the administrator. Sundberg moved, Woodruff seconded, Adopting RESOLUTION NO. 14-029, “A Resolution Delegating Authority for Paying Certain Claims and to Enter Into the Purchasing Card Program with PFM Financial Services, LLC” subject to developing a policy that a card holder would sign which lays out the responsibilities associated with the use of a purchasing card prior to the issuance on any card to staff and prohibiting the use of the cash advance capability. In response to a question from Councilmember Hotvet, Administrator Joynes explained the titles for the five department heads will be listed in the policy. Administrator Joynes stated there is a rebate program associated with the program based on usage. The rebate would be returned to the City. Councilmember Woodruff noted that the City would have to spend $50,000 before it would get any rebate. Motion passed 4/0. 11. OLD BUSINESS 12. STAFF AND COUNCIL REPORTS A. Administrator and Staff 1. Monthly Budget Report Mayor Zerby noted that via email Council received a copy of the March 2014 General Fund Monthly Budget Report. 2. Quarterly Investment Report Mayor Zerby noted the meeting packet contains a copy of the March 2014 Quarterly Investment Report. 3. Trail Projects Timeline Mayor Zerby noted that via email Council received a copy of the trails project timeline. 4. State Aid Funding Status Mayor Zerby noted that via email Council received a copy of the state aid funding status. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES April 28, 2014 Page 12 of 15 Administrator Joynes stated he has asked Engineer Hornby to put out a memorandum about the Municipal State Aid (MSA) reimbursement and how Hornby determined the amount the City was eligible to receive. The City had not been aware of money Hornby identified that the City can use. Because some of the Councilmembers did not receive the email it will be resent. Other Director Brown stated that month to date there has been 6.27 inches of rain in the City according to the Chanhassen Weather Service. There has been 1.9 inches so far today. Staff has observed water ponding where it has not been observed before. There are ponding issues along the LRT Trail and some of the storm sewer systems that back up to it. Staff is diligently working to resolve those issues. There are residents who are very concerned about the ponding in their yards. Yet, many of those issues are private drainage issues. He noted the City does not have the authority to go on to private property and attempt to resolve those issues. He stated he had taken many calls today about the ponding and people did not like to hear that answer. Staff will continue to work on resolving issues. Councilmember Sundberg stated there a many properties along the Smithtown Road west sidewalk that have ponding issues. She asked if the new sidewalk is contributing to that. Director Brown explained that for a project like the sidewalk project one of the first things that is done is to apply for a watershed district permit in best management practices. Ultimately best practices are intended to help protect the environment. A city puts in catch basins for a cost of $2,000 – $3,000 to meet best management practices and then puts down one or two levels of fabric which minimizes the effectiveness of that structure. The intent for doing that is to minimize the silt that ultimately goes into water bodies; that’s a good thing. Unfortunately, the fabric clogs up with silt which causes water backup and ponding. That is what is happening along Smithtown Road. That is a common issue that occurs metro wide on large construction projects. When significant rain falls there can be significant negative impacts because the ability to handle the water has been reduced because of the best practices. He noted the City will face these types of issues when it installs the mandated erosion control measures as part of large construction projects. Engineer Hornby stated the plans for the Galpin Lake Road trail/walkway are more than 50 percent complete. He noted that the next trail slated for construction in the capital improvement program is the Smithtown Road east sidewalk/trail project (from the LRT Trail to Country Club Road). He encouraged Council to call him if they have questions about the two projects. Councilmember Hotvet asked about the progress on the Excelsior Boulevard Trail segment (the section that extends from Manor Road to Barrington Way). Engineer Hornby stated per Metropolitan Council Environmental Services (MCES) it is his understanding that MCES will be working in that area mid to late June and MCES hopes to have its project completed by the end of the year. Director DeJong explained the March 2014 Monthly Budget Report includes a $283,414 transfer out of Department 11 (Council) to the Park Improvement Fund per the direction of Council. That is a transfer of the net proceeds from the sale of the former City-owned property located at 5795 Country Club Road. He noted the ice and snow removal expenses year-to-date are very high because of the significant snowfall and the shortage of salt. He also stated Finance staff will be in training all week on the new utility billing system. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES April 28, 2014 Page 13 of 15 Mayor Zerby asked when the auditors will be on site to conduct the 2013 financial audit. Director DeJong responded they will be on site starting Monday, May 5. Zerby asked if staff is ready for them. DeJong responded they are. Administrator Joynes noted there is a Council executive session scheduled for May 12 at 6:00 P.M. to talk about the Southshore Community Center. B. Mayor and City Council Councilmember Sundberg stated that over time issues are raised by residents or during Councilmembers’ discussions that warrant some type of action. The chemical use issue discussed earlier in the meeting and the bee issue are examples. She asked staff to help Council keep track of them. She then stated a few months ago staff was directed to draft a simple request for proposal for services to help Council and staff assess potential alternative energy options for the City. That is another example. Councilmember Hotvet concurred with the request. Councilmember Woodruff stated he attended the Metro Cities annual meeting on April 25. University of Minnesota Extension climatologist and meteorologist Mark Seeley gave an interesting presentation about weather events and the increase in their frequency. Mr. Seeley noted that there is one city in Minnesota that had two 100-year rain events in one year. During the meeting there was an election of officers and Minnetonka City Councilmember Brad Wiersum was elected president effective July 1. Woodruff then stated during Council’s last meeting there was discussion about enforcement of weight restrictions and scales. Mayor Zerby stated he has spoken with South Lake Minnetonka Police Department (SLMPD) Chief Litsey and Director Brown about that. Brown explained the existing scales are old and they need to be certified annually. He thought the SLMPD has held off certifying them the last few years. The SLMPD has concerns about how heavy the scales are and they can cause significant damage to roadways. They are also difficult to maneuver. It may be worthwhile to purchase lighter scales. He commented that if a tool is easy to use it will likely be used more frequently. Brown noted that he has offered the SLMPD the opportunity to have trucks bought into the Public Works facilities for weighing. Woodruff asked that people keep pursuing this until they get an answer that the City can enforce its weight restrictions ordinance. Zerby stated the SLMPD Coordinating Committee can discuss new scales during its 2015 budget process. Woodruff went on to state that during Council’s last meeting there was discussion about speed enforcement on Country Club Road. During that meeting it was pointed out that SLMPD police officers are reluctant to issue speeding citation if a driver is traveling no more than five miles over the posted speed because a judge would not uphold such a written citation. The results of the speed study done on that roadway indicated there were a significant number of events where drivers traveled speeds much higher than the posted speed of 30 miles per hour (mph). Mayor Zerby noted that he has spoken with SLMPD Chief Litsey about speed concerns throughout the City. They are going to brainstorm on ideas and bring that back to the SLMPC Coordinating Committee and to Council. Councilmember Sundberg asked how to go about lowering the posted speed limit for Summit Avenue. Mayor Zerby stated speed limits can only be set by the Minnesota Department of Transportation th (MnDOT) and that is accomplished through a speed study. MnDOT uses the 85 percentile, which is the speed that a reasonable prudent driver drives, to set the speed limits. Director Brown explained a city council must pass a resolution asking MnDOT to conduct a speed study then MnDOT will conduct the study. MnDOT believes that 85 percent of the motoring public use reasonable and prudent judgment to th safely travel a roadway. Once MnDOT does a study and determines the 85 percentile it will set the CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES April 28, 2014 Page 14 of 15 posted speed based on the study data. The posted speed could possibly go up. Sundberg asked Council if that is something that should be considered for Summit Avenue. She stated it is hard to imagine prudent driver going 30 mph. Councilmember Woodruff stated he supports staff drafting a resolution requesting a speed study for Council’s consideration during its next meeting. He noted that he does not think there is any chance the speed limit would be raised and that 30 mph is too high for that roadway. Councilmember Woodruff stated during the February 2014 Council and staff retreat there was discussion about consolidated trash collection. Administrator Joynes stated that discussion is scheduled for the fourth quarter of 2014. Councilmember Hotvet noted that on May 3 from 3:00 – 7:00 P.M. on the corner of Lake Street and Water Street the Lake Minnetonka Excelsior Rotary Club is putting on a Bingo and Burgers by the Bay event. All proceeds will go the Excelsior - Lake Minnetonka Chamber of Commerce’s July 4 fireworks display. Mayor Zerby stated he attended a SLMPD Coordinating Committee special meeting on April 15. During the meeting a change to the joint powers agreement (JPA) related to budget approval was discussed. It would change if from one member city not approving the budget to two cities not approving the budget to set the upcoming year’s budget to the default provision in the JPA. He noted he thinks that is a bad idea. The Committee also talked about succession planning for the SLMPD Chief who currently intends to leave the organization by the end of February 2015. The Committee has directed the member City Administrators/Manager to assess various organizational options including the option of one person over both police and fire with two deputy chiefs reporting to that person. Zerby then stated that he and Councilmember Sundberg attended the Excelsior City Council work session on April 21when that Council discussed the Cove Proposal (a proposal about the Southshore Community Center). He thought the proposal was well received. That Council was interested in moving forward with the proposal to find out what Minnetonka Community Education’s involvement with the SSCC might be. Sundberg stated she was encouraged by that Council’s desire to work with the other joint owners of the SSCC. He also stated that on April 22 he attended a forum hosted by the League of Women Voters South Tonka about livable communities. About 25 people attended the event. There were two Hennepin County representatives present to discuss the County’s pedestrian plan and bike plan study that the County is close to finishing. John Gunyou, Chair of the Three Rivers Park District Board of Commissioners, was also present and he did a very nice job. He noted the meeting has been televised and he encouraged people to watch it. People were updated on the County Road 19 bridge project at the intersection with the LRT. He went on to state that on April 25 he attended a Mayors of Lake Minnetonka meeting hosted by Hennepin County Commissioner Jan Callison. House Representative Cindy Pugh and Hennepin County Sherriff Rich Stanek were also present. There was an update on the scenic byway initiative. Most of the Mayors present were supportive of it. A couple Mayors expressed concerns about the traffic that could be generated because of the initiative. Those in attendance could not recall there being a death from a boating drowning incident on Lake Minnetonka in 2013. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES April 28, 2014 Page 15 of 15 13. ADJOURN Woodruff moved, Sundberg seconded, Adjourning the City Council Regular Meeting of April 28, 2014, at 8:43 P.M. Motion passed 510. RESPECTFULLY SUBMITTED, Christine Freeman, Recorder Scott -erby, May r ATTEST: pv� � Pd4yal z JeA Panchyshyn, Cit cleik