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06-23-14 CC Reg Mtg MinCITY OF SHOREWOOD CITY COUNCIL REGULAR MEETING MONDAY, JUNE 23, 2014 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 7:07 P.M. A. Rail Call Present. Mayor Zerby; Councilmembers Siakel, Sundberg, and Woodruff; Associate Attorney Guerrero; City Administrator Joynes; City Clerk Panchyshyn; Finance Director DeJong; Planning Director Nielsen; Director of Public Works Brown; and, City Engineer 1- lornby Absent: Councilmember Hotvet. B. Review Agenda Mayor Zerby asked to add Item I I .A Bee -Safe City Resolution to the agenda. Councilmember Sundberg stated the resolution discussed during the work session immediately preceding this meeting was modified. She would like to see it in final form before considering adopting it. Director Brown asked that I.tenr 9.13 be removed from the agenda and that Item 1O.0 Community Sandbags be added to the agenda. Councilmember Sundberg asked if Ms. Patricia Hauser has a revised copy of the Bee -Safe City Resolution. She noted she just wants to see a copy of it before acting on it later on. the agenda. Councilmember Woodruff stated lie did not like adding items to the agenda on the fly. Councilmember Siakel stated she does not think things are being added on the fly; things just come up after the agenda is published the Thursday before Council's meeting. Woodruff stated Council and the public have not had a chance to see the revised resolution. Therefore, he is uncomfortable adding it to the agenda. There was Council consensus to have the Bee -Safe City Resolution on its July 14 meeting agenda. Woodruff moved, Siakel seconded, approving the agenda as amended by deleting Item 9.B and adding Item 10.C. Motion passed 410. 2. APPROVAL OF MINUTES A. City Council Regular Meeting Minutes, June 9, 2014 Woodruff moved, Siakel seconded, Approving the City Council Regular Meeting Minutes of June 9, 2014, as presented. Motion passed 410. 3. CONSENT AGENDA Mayor Zerby reviewed the iterns on the Consent Agenda. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES June 23, 2014 Page 2of19 Woodruff moved, Sundberg seconded, Approving the Motions Contained on the Consent Agenda and Adopting the Resolutions Therein. A. Approval of the Verified Claims List B. Adopting RESOLUTION NO. 15 -0441 "A Resolution Appointing 2014 Primary and General Election Judges and Establishing an Absentee Ballot Board." C. Adopting RESOLUTION NO. 15 -045, "A Resolution Authorizing the Execution of a Joint Cooperation Agreement between the City of Shorewood and Hennepin County for Participation in the Urban Hennepin County Community Development Block Grant Program in 2015 — 2017." D. Adopting RESOLUTION NO. 15 -046, "A Resolution Authorizing the Execution of Agreement No. 04597 between the City of Shorewood and the Minnesota Department of Transportation for the County Road 19 and Trunk Highway 7 Traffic Control Signal Project." E. Adopting RESOLUTION NO. 14- 047, "A Resolution Permitting a Shorewood Property Owner to Connect to the Tonka Bay Municipal Water System" and Authorizing the City of Shorewood to Enter into a Water Connection Agreement with the Ronald L. Zenk, the Owner of the Property Located at 5435 Timber Lane; Adopting RESOLUTION NO. 14 -0481 "A Resolution Permitting a Shorewood Property Owner to Connect to the Tonka Bay Municipal Water System" and Authorizing the City of Shorewood to Enter into a Water Connection Agreement with Northern States Power, the Owner of the Property Located at 5505 County Road 19; and, Adopting RESOLUTION NO. 14 -049, "A Resolution Permitting a Shorewood Property Owner to Connect to the Excelsior Municipal Water System" and Authorizing the City of Shorewood to Enter into a Water Connection Agreement with Ping Chen and Gerhardt Mahling, the Owners of the Property Located at 23425 Academy Avenue. F. Adopting RESOLUTION NO. 14 -050, "A Resolution Approving Plans, Specifications and Authorizing Advertisements for Bids for 2014 Seal Coat Project, City Project No. 14 -05." G. Adopting RESOLUTION NO. 14 -051, "A Resolution Adopting Performance Measures." H. Approving the Deer Management Program be continued in 2014 with Metro Bowhunters Resource Base conducting the harvesting effort and authorizing the harvesting to occur on four weekends. Mayor Zerby noted that Council had been provided with an updated schedule for the 2014 Deer Management Program harvesting. Councilmember Woodruff stated the City has participated in the Urban Hennepin County Community Development Block Grant (CDBG) Program a number of times before. This time a new Emergency Solutions Grants Program (ESG) is being introduced. He has never heard of that before. Staff had provided Council with a copy of an email from Ms. Margo Geffen with Hennepin County that explains CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES .Tune 23, 2414 Page 3 of 19 ESG and the CDBG funding mechanism. The email explains that Shorewood would basically get no federal housing and Urban Development monies in the Consolidated Pool. It also explains that if Shorewood were to be part of the urban county it could not be able to apply for a separate allocation of ESG funds. He asked staff to explore what opportunities there would be for Shorewood under the ESG Program. Motion passed 4 /0. 4. MATTERS FROM THE FLOOR Alex Petrosian 23130 Summit Avenue, stated he has an issue with flooding on his property due to the extreme rainfalls. He believes he has a problem because of the roadway above his property. The curb along Summit Avenue has been deteriorating and there is a big hole. The water found its way through the hole and his garage was flooded. He asked the City to fix the curb sooner rather than later. Ralph Campbell, owner of the -property located at 450 Lafayette Avenue, stated there is water all over their property which has caused issues in their home. He asked if there is something he and his wife should be doing should funding possibly become available to help people with problems caused by the rains. He noted that he does not expect an answer this evening. Mayor Zerby noted that the City's Public Works department is aware of the issues people are having along that roadway. He stated the State has not made an estimate of the damages to determine if the State could be eligible for flood relief. He then stated the City is using its website as its primary way to get information out to the residents about emergency procedures and options available to property owners. Residents can call City Hall and there is an afterhours Public Works phone number listed on the website. He encouraged residents to call 911 to report things like health issues or natural disasters or the sighting of a rabid raccoon. 5. PUBLIC HEARING A. 7 :15 P.M. PUBLIC BEARING — Vacate Drainage and Utility Easements Applicant: Darin Busch Location: 5360/5366 Vine Bill Road Mayor Zerby opened the Public Hearing at 7:21 P.M. Director Nielsen noted that Item 5.A and Item 5.B go hand in hand. Item 5.A is a result of the request under Item 5.13. Director Nielsen explained that Darin Busch, 5360 Vine Hill Road, has arranged to purchase 20 feet of the property located at 5366 Vine Hill Road which is owned by Phillip Dritsas to enlarge his property southward. The impetus for the action is Mr. Busch made some improvements on what he thought was his property but later determined they were on Mr. Dritsas' property. Mr. Dritsas has agreed to the sale. Because the existing lot line will be moved Mr. Busch has asked that the drainage and utility easements along the existing lot line be vacated and as part of the minor subdivision in Item. 5.B. New easements would be granted along the new common lot line. Staff and the Planning Commission have recommended approval of both the minor subdivision/combination and the vacation. Seeing no one present to comment on the case, Mayor Zerby opened and closed the Public Testimony portion of the Public Hearing at 7:24 P.M. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES .tune 23, 2014 Page 4 of 19 Mayor Zerby closed the Public Hearing at 7:24 P.M. B. Approval of Minor Subdivision Applicant: Darin Busch Location: 5360/5366 Vine Hill Road Siakel moved, Sundberg seconded, Adopting RESOLUTION NO. 14 -053, "A Resolution Approving Subdivision of Real Properly for Philip Dritsas, 5366 Vine Hill Road, and the Combination of an approximate 3000 Square -Foot Strip of that Property with the Property Located at 5360 Vine Hill Road owned by Darin Busch ". Motion passed Motion passed 410. Woodruff moved, Siakel seconded, Adopting RESOLUTION NO. 14 -052, "A Resolution Vacating the Existing Drainage and Utility Easements Located on the Property Line between the Properties Located at 5360 and 5366 Vine Hill Road." Motion passed 410. 6. REPORTS AND PRESENTATIONS A. Abdo, Eick and Meyers, 2013 Audit Report Mayor Zerby noted Andy Berg, with the independent CPA firm of Abdo, Eick & Meyers, LLP, is present to provide an overview of the City of Shorewood's 2013 financial audit. Mr. Berg encouraged Council to ask questions during his presentation. He stated the management letter and financial statements are in draft form. He does not anticipate any significant changes to them. Once Council and staff approve them they will be finalized and submitted. He noted the firm he works for issued a clean opinion on the financial statements. He explained the firm also issued a separate report on Minnesota League of Compliance; there were seven different categories that are tested. That also received a clean opinion. There were not any compliance issues with Minnesota Statutes. Mr. Berg explained there was one 2013 material audit finding related to audit entries for receivables and prepaid items. It was mainly about year -end accrual items. There was receivables money carved in 2013 and received in 2014 but not recorded as a receivable as of December 31, 2013, when they came in to conduct the audit. He noted the financial statements and the financial decisions made are Council's responsibility. He provided a financial overview of the City's General Fund expenditures and revenues. He displayed a five -year trend graph of the City's General Fund balance and how it relates to the next year's expense budget. He explained the City's General Fund balance was about 72 percent of 2014 budgeted expenditures at the end of 2013. The City's General Fund Balance Policy requires a fiend balance of 55 — 60 percent of the next year's expenditures. That has been more than maintained over the last five years. He highlighted the summary of the 2013 operations. The summary showed final budgeted amounts, actual amounts and variances from the final budgets. Revenues and expenditures were both close to budget. The revenue over expenditure budget variance was almost $183,000 and the revenues over expenditure were just over $1 million. The largest budget variance was under other financing sources. It was the sale of the City owned property for about $317,000 which contributed toward an increase in the General Fund balance. Just over $1 million was transferred out to other City funds; about $44,000 more than what was budgeted. The General Fund balance increased approximately $352,000 in 2013. The ending fund balance was just over $3.9 million. CITY OF SHORE WOOD REGULAR COUNCIL MEETING MINUTES June 23, 2 014 Page 5 of 19 He displayed a graph comparing five sources of revenues excluding property taxes for 2009 — 2013. He explained that property taxes made up about 89 percent of the revenues in 2013. Property tax revenues have remained relatively consistent for the last five years. They have been around $4.7 million. The main increase in other revenues has been the cellular antennae lease revenue which was recorded into the General Fund in 2013. The revenues from licenses and permits have been increasing slightly each of the last five years mainly due to permits. He displayed a graph comparing five sources of expenditures for 2009 -- 2015. He explained the majority of the City's expenditures are in general government and public safety with them being 24.4 percent and 28.1 percent respectively of the total expenditures and transfers out. The 2013 transfers out were just over $1 million; they totaled about $908,000 in 2012. He explained that at the end of 2013 the bonds outstanding totaled about $8.8 million and the total interest remaining for the life of the bonds is about $2.1 million. He displayed a graph of the principal and interest scheduled payments for 2014 — 2028. In 2024 the bonded debt for the public safety facilities will be paid off. There will only be the 2008 lease revenue bonded debt remaining. He displayed a table of the City's capital project funds. The six funds totaled approximately $3.2 million at the end of 2013. That reflects an approximate decrease of $1.27 million and that was mainly due to the construction of trails and equipment purchases. Mr. Berg highlighted the Enterprise Funds (water, sewer, recycling, and storm water management). For each fund he displayed a cash flow graph and a cash balance graph for 2010 — 2013. In 2013 the City refunded the G. 0. Water Revenue bonds. A portion of the bonds were paid off and a portion increased the total cash held with escrow agent to be paid off in 2014. The total bonds outstanding at the end of 2013 were approximately $3.54 million.; that included the refunded bonds. The Water Fund cash balance has been increasing each of the last four years. His firm recommends a minimum target balance of four months of operating disbursements plus the following year's debt service. He encouraged the City to decide if that amount is appropriate. He noted water revenues did cover expenses in 2013. Councilmember Woodruff stated the cash flow graph indicates that the water revenue receipts had been fairly consistent for 2010 — 2012. For 2013 there was a significant reduction in receipts and 2013 was a drought year. He finds that to be somewhat worrisome, lie questioned if there could be an issue with the City's water rate structure. He recommended that staff discuss that with Council during a future meeting. Mr. Berg stated he thought that was because water usage was down. Mr. Berg stated in 2013 there was a fairly wet start to the summer and water usage going down was a fairly consistent trend for 2013. He agreed that it would be prudent to look into that further. Mr. Berg stated the Sewer Fund cash flow graph indicates there are no outstanding bonds for sewer operations. The sewer receipts have been fairly consistent over the last four years and there has been a little fluctuation in operating disbursements yet fairly consistent. The trend has been for the total receipts to be less than disbursements in 2011 — 2013. The effect of that can be seen in the cash balance graph. Although there is a fairly significant balance the trend has been that it is decreasing in 2010 - 2013. The other disbursements category (e.g.; capital, interfund, etc.) was greater in 2011 than in 2013. The cash balance is significant in relation to the minimum target balance his firm recommends which is a minimum target balance of four months of operating disbursements. The Recycling Fund is basically a break -even fund. Receipts were higher than disbursements in 2013. They were just the opposite in 2012. The cash balance graph show the cash balance had decreased in CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES June 23, 2014 Page 6 of 19 2012 when compared to 2011. It went up in 2013 and the year -end cash balance was approximately $53,000. The recommended minimum target balance is three months of operating costs based on a three - month billing cycle. The Stormwater Management Utility Fund cash flow graph indicates the operating receipts have been fairly consistent over the last four years. There was a slight drop in 2013. There were significant capital expenditures in 2011 which accounted for the larger decrease in cash. In 2010 the year -end cash. balance was approximately $665,500 and it was down to approximately $214,000 at the end of 2011. It was back to approximately $149,000 at the end of 2013. Mr. Berg reviewed the ratio analysis over a four year period comparing some of the City's financial ratios to peer group ratios. The City's debt -to- assets ratio (for the City's assets this measures how much is owed for them) is 30 percent; a little lower than the 2012 peer group's average. It has been fairly consistent for the last four years. The City's debt - service - coverage ratio (the ability of the Water Fund. to pay back its debt service) is 73 percent. The debt- per - capita ratio (the total outstanding debt broken down by resident) is $1,664; the 2012 peer group's was $2,626. The City's taxes - per - capita ratio is $641; the 2012 . peer group's was $480. It has been. consistent over the four -year period. The City's current- expenditures -per- capita ratio is $528; the 2012 peer group's was $649. It has been consistent over the four -year period. The City's capital- expenditures - per - capita ratio is $544; the 2012 peer group's was $624, The City's taxes - per- capita ratio is $358; the 2012 peer group's was $298. That ratio fluctuates based on what capital projects were done during the year. Mr. Berg stated the new GASB (Governmental Accounting Standards Board) Statement 68 relates to Public Employee Retirement Association (PERA) pension reporting. It has to be implemented in fiscal year 2015. PERA has unfunded liabilities and none of its member cities or other governments recognize their portion of the liability on their financial statements. The new standard will have each member city recognize their share of the unfunded pension liability. The liability can be significant. It will mainly be a year -end accounting transaction and it will show up on the City's financial statements. It is currently a note disclosure with no liability recorded. Councilmember Woodruff asked how that will show up on the City's balance sheet. Mr. Berg clarified that it will only show up on the City's government wide financial statements. It won't show up on the General Fund statements. Woodruff stated that the recommendation for the minimum target balance for the Recycling Fund should equal three months of operating costs. Yet for the other three Enterprise Funds it is four. He asked why the difference. Mr. Berg explained recycling is operationally funded and for the water and sewer enterprise operations there can be unexpected repairs or maintenance or other costs. Woodruff then stated he is concerned about the type of finding that was noted. He asked staff to commit to close the books in a timely manner and to make all of the entries before the auditors come on site to conduct the audit. He noted things were much better off than they have been in the recent past, but there should not be that type of finding. He stated the only reason there should be findings of that nature from the auditor they should be because the auditor's view and staff's view on how to book things are different and there needs to be a journal entry made to correct things. It should not be because receivables were not booked. Administrator Joynes noted that there were a couple of entries that should have been caught yet things were better than for 2012. There was one disagreement in terms of one of the postings. Staff and the auditor have since agreed on how it should be done. Mayor Zerby suggested considering bringing in the auditor to do a pre - audit. Woodruff stated he would like the books closed by the end of the first quarter and he would support spending a little money to make that happen.. CITE' DE SHOREWOOD REGULAR COUNCIL MEETING MINUTES June 23, 2014 Page 7 of 19 Woodruff moved, Siakel seconded, accepting the draft 2013 Comprehensive Annual Financial Report (CAFR) as presented. Motion passed 410. Mayor Zerby thanked Mr. Berg for his efforts and for coming this evening. He stated he thought Mr. Berg did a great job as always and that his report was well done. He also thaniked. Director DeJong. 7. PARKS A. Report on the June 10, 2014, Park Commission Meeting Park Commissioner Hartmann reported on matters considered and actions taken at the June 10, 2014, Park Commission meeting (as detailed in the minutes of that meeting). Mayor Zerby noted he had been contacted by former park commissioner Gordy Lindstrom who had suggested moving the football field to Freeman Park as opposed to Badger Park. He asked Commissioner Hartmann if the Park Commissioner had been made aware of that. Hartmann stated that could be put on the Commission's next meeting agenda for discussion. Director Nielsen stated he thought the jest of the letter was to save the hockey rink. Zerby stated that he had spoken with. Mr. Lindstrom earlier in the day and Mr. Lindstrom thought that by building a new field in Freeman Park it would be the organized sports park and it would be following the Parks Master Plan. There would also be less transition time for the field if it were to be rebuilt in a new location. Nielsen stated that would involve significant changes to the Badger Park improvement plan. 19 WRIZ i`1:Q09 A. Authorize Preparation of Feasibility Report and Professional Services Agreement for Smithtown Road East Trail Director Nielsen explained the next trail segment identified in the Trail Implementation Plan is the Smithtown Road east trail which extends from the LRT Trail to the intersection of Smithtown Road and County Road 19. The next step in the process is to authorize a feasibility study for that segment. WSB & Associates has submitted a proposal for the preliminary design and feasibility, topographic survey and wetland delineation for an estimated cost of $31,274. It is anticipated there will be some right-of-way (ROW) issues with this segment. The plan is to complete the feasibility study by August 22. The Planning Commission will consider the trail segment and make a recommendation to Council during its September 2 meeting. Council will consider the feasibility report on September 8. After that there will be an open house on the proposed trail. Councilmember Woodruff stated the staff report did not mention which side of Smithtown Road the trail will be on. Director Nielsen explained the staff report notes that both sides of Smithtown Road will be surveyed to determine which side is the best for the trail. Siakel moved, Sundberg seconded, authorizing a feasibility study and entering into a professional services agreement for Smithtown Road (east) Trail Project as presented in the proposal from WSB car Associates for an estimated amount of $31,274. Motion passed 410. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES June 23, 2014 Page 8 of 19 B. Approval of Minor Subdivision and Combination Applicant: Bell Zucco Location: 4485 and 4545 Enchanted Point Director Nielsen explained that William Zucco is representing his mother's estate. The members of the estate propose to sell the easterly 50 feet of the estate property located at 4485 Enchanted Point to Elizabeth Larsen, the owner of the property located at 4545 Enchanted Point. The segment will be legally combined with the Larsen property. Both lots meet or exceed the lot size requirements of the R -IC /S zoning district. He noted that staff and the Planning Commission recommend approval of the minor subdivision and combination. Sundberg moved, Siakel seconded, Adopting RESOLUTION NO. 14 -054, "A Resolution Approving Subdivision for William Zueco, 4485 Enchanted Point, and Combination of Real Property of the Easterly 50 Feet of that Property with the Property Located at 4545 Enchanted Point owned by Elizabeth Larsen ". Motion passed 410. C. Approval of Final Plan/Final Plan — Summit Woods Planned Unit Development Applicant: Homestead Partners Location: 23040 Summit Avenue Director Nielsen explained that Homestead Partners, LLC, has submitted its final plat and final plan for its proposed Summit Woods planned unit development (PUD). The conditions raised and the issues that were addressed during the Concept Stage and Development Stage approvals have been addressed through the plans and specifications and the Development Agreement for the PUD (a copy of it was included in the meeting packet). He noted the resolution included in the meeting packet includes the Development Agreement and the Conservation Easement (a copy of it was included in the meeting packet) and it talks about the protective covenants associated with the project. He highlighted items addressed in the Development Agreement. ➢ Hennepin County does not allow a conservation easement to be shown on a final plat document. It does allow drainage and utility easements to be shown. The Conservation Easement will end up being a separate deed to the City of Shorewood. ➢ Item La needs to be changed from "... The Developer shall provide the City with a drawing showing the limits of the construction easement ..." to "... The Developer shall provide the City with a drawing showing the limits of the conservation easement ..." ➢ The driveway for Lot 1 shall be located as far north on the lot as possible, but no closer than five feet from the property line. ➢ The front building setbacks are as follows: Lot 1 — 20 feet; Lot 2 ---- 35 feet (the requirement for the R -1 C zoning district); and, Lot 3 and Lot 4 — 40 feet. ➢ Each driveway shall have a pullout adequate in length and width to allow a car to turn around in the driveway. ➢ The final plat consists of the grading, drainage and utility plans; the Development Agreement; the Conservation Easement; and, the Declaration of Covenants, Conditions and Restrictions. ➢ The developer has submitted a revised Construction Management Plan dated June 19, 2014. ➢ Prior to the start of construction, the streets serving the property shall be televised so as to ascertain what damage may be caused by construction traffic. Any damage will have to be restored prior to the release of the letter of credit for the project. The letter of credit is for 1.5 times the amount of the required improvements. Those are released or reduced as the project proceeds and the items are completed. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES .tune 23, 2014 Page 9 of 19 ➢ Prior to the release of the final plat by the City, the developer shall pay the City $3,600 ($1,200 for each lot) as local sanitary sewer access charges. The developer gets credit for Lot 2 with the existing house on it. ➢ Prior to the release of the final plat by the City, the developer shall pay the City $15,000 ($5,000 for each lot) for the Park Fund. The developer gets credit for Lot 2 with the existing house on it. Mayor Zerby stated it is his understanding that Summit Avenue will be surveyed before construction starts and after it is completed. He noted that there has been discussion about trucks driving off the roadway and damaging property. Director Nielsen explained that Zerby has brought up the possibility of putting weight restrictions on the steep, curving portion of Summit Avenue with a sign indicating no truck traffic. Staff suggests keeping that in place for two years to include the house building process for this project and thinks that is a reasonable thing to do. Staff can have a resolution ready for Council's consideration during its July 14 meeting. Zerby stated he thought that would be a good idea. In response to a question from Councilmember Woodruff regarding the statement in Item 7 that states the required landscaping must be completed by June 1, 2015, Director Nielsen clarified that is for the required reforestation for the lots. In response to another question from Woodruff, Nielsen explained the Construction Management Plan stipulates that construction vehicles cannot parr on the street. In response to a third question from Woodruff regarding the conservation easement deed, Nielsen clarified the conservation easement will be deeded to the City. The City will not own the easement area. Mayor Zerby clarified there is not a public hearing on the Summit Woods PUD this evening. There is no formal process for public input this evening. Director Nielsen noted that the Planning Commission has held two public hearings and each of them was continued. The hearings were spread to four Commission meetings. Zerby stated Council has carefully listened to concerns the public conveyed when Council considered approval of the concept plan and the development plan and it has attempted to answer questions to the best of its ability. Council has also heard comments via phone and email. Zerby noted that he will recognize one member of the audience for a question. Charles Liedtke 6231 Hummingbird Road,. Chanhassen, noted that his property is adjacent to the Rix property which is being split into two developments; one in Chanhassen and possibly one in Shorewood consisting of 4 or five lots, He stated residents have asked that a rigorous safety study of Summit Avenue be done for a number of months. He asked where people can find and read an exhaustive, rigorous safety study related to the Summit Woods PUD. Mayor Zerby noted the traffic study is not part of this process and that Council has asked staff to request a traffic study. Director Nielsen explained that the engineers had identified four alternatives for improvements to Summit Avenue and they were presented to Council. Council chose not to act on any of the alternatives until the results of a traffic study were received from the Minnesota Department of Transportation (MnDOT). Engineer Hornby explained that MnDOT has had the request for about one month. He contacted MnDOT earlier in the day to find out if it had a timetable for completion. MnDOT addresses those requests on a first come first serve basis. In response to a question from Zerby, Homby noted that sometimes he has had studies completed in three weeks and other times it tapes two months. Laura Liedtke, 6231 Hummingbird Road, Chanhassen, stated on June 19 she could not get home because she could not pull onto her driveway. The same was true for her neighbor. The reason was there was a 50- foot -long truck in the road because there is construction occurring on the former Rix property in CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES June 23, 2014 Page 10 of 19 Chanhassen. She clarified it is not the developer's fault; the roadway is narrow and small. That construction is just for one house. She then stated that on Monday evening her son had a medical emergency in another neighborhood. She was grateful that an ambulance could get to the site and that she could get there. But, if it had occurred at her home she does not think the ambulance could have gotten there. She then stated that from her perspective if the Summit Woods PUD moves forward Shorewood needs to figure it out. If an ambulance is not able to get to that area or if public safety cannot get there or a person cannot get home that will be a major issue. They cannot get around Summit Avenue. Drivers sometimes go down Hummingbird Road and drive backwards down. She noted the Carver County Sheriff has been called and the South Lake Minnetonka Police Department (SLMPD) will be called mangy tinges. .Mayor Zerby asked Director Nielsen to address what a resident could do if a construction vehicle is blocking someone's access to their home. Nielsen stated during Monday — Friday normal work hours people should call the Planning Department or the SLMPD. He then stated when the road is entirely blocked they should call the fire department because it has more authority then police when it comes to a roadway being blocked. Zerby noted he has a lot of confidence in Shorewood staff when it comes to construction related things. He encouraged people to call City staff. If it is something more serious people should call 911. Sandberg moved, Siakel seconded, Adopting RESOLUTION NO. 14 -055, "A Resolution Approving the Final Plat and Final Plan of Summit Woods Planned Unit Development (PUD)" and approving the Development Agreement between the City of Shorewood and Homestead Partners, LLC, for the PUD. Motion passed 4/0. Mayor Zerby thanked the public for coming. D. Approval of Conditional Use Permit Applicant: Northern States Power Company (Xcel Energy) Location.: 5505 County Road 19 Director Nielsen explained that Northern States Power (Xcel Energy) proposes to build two equipment storage buildings on their site at 5505 County Road 19. Because "governmental and public regulated utility buildings and structures" are listed as conditional uses in the Shorewood Zoning Code, Xcel is requesting a conditional use permit (C.U.P.). The property is in the C -1, General Commercial zoning district. He displayed a copy of arr existing property survey showing the buildings currently on the property and a proposed site plan. The location of the building in the northeast quadrant is in the City of Tonka Bay. The two new buildings will be located in Shorewood. The new buildings will meet or exceed all of the City's setback requirements. Construction of the new buildings will be consistent with what is already on the site. The only thing staff thought was missing on the application was some landscaping treatment. Staff proposed Xcel Energy concentrate its efforts on along the edge of the site nearest County Road 19. Nielsen noted the Planning Commission held a public hearing on this application during its June 3, 2014, meeting and recommended approval of the C.U.P. for Northern States Power subject to staff review and approval of a landscape plan addressing the issues raised by staff. Staff is in the process of reviewing a landscape plan which shows there will be evergreen trees along the existing parking lot. Staff has asked CITY OF SHOREWOOD REGULAR COUNCIL M.EETI.NG MINUTES June 23, 2014 Page 11 of 19 for some additional landscape treatment near the storage area. Staff has also recommended approval of this C.U.P. with some modification to the landscape plan. Councilmember Siakel noted she likes the addition of more landscaping. Siakel moved, Woodruff seconded, Adopting RESOLUTION NO. 14 -0561 "A Resolution Granting a conditional use Permit for Northern States Power, 5505 County Road 19, to Add Two Accessory Structures" subject to the conditions identified in the Staff report and the City Engineer's report both dated May 29, 2014, and some modifications to the landscape plan. Motion passed 410. 9. ENGINEERING /PUBLIC WORKS A. Approve Plans and Specifications and Authorize Advertisement for Bids for the Galpin Lake Road Sidewalk Project Engineer Homby noted the meeting packet contains a copy of a resolution approving the plans and specifications for the Galpin Lake Road sidewalk project and authorizing advertisement for bids. The plans and specifications are about 95 percent complete and the plans have been submitted to the Minnesota Department of Transportation (MnDOT) for its review. Staff continues to discuss a couple of resident items related to temporary easements or right of entry items. Staff wants to advertise for bids as soon as possible. MnDOT takes the projects on a first come first serve basis. He explained if the City does not receive comments back from MnDOT by the bid opening date the date will have to be extended by addendum. Mayor Zerby asked Engineer Homby if any problems have surfaced related to this project due to the intense rains. Hoinby responded to four individuals earlier in the day to talk amount the volume of stormwater that flows onto their yards. Homby explained that one of the things the City is trying to help with is to reduce the amount of water that pools on the pavement and then flows on to driveways. Sundberg moved, Siakel seconded, Adopting RESOLUTION NO. 14 -0571 "A Resolution Approving Plans and Specifications and Authorizing Advertisements for Bids for Galpin Lake Road Sidewalk Improvement Project, City Project 13 -06." Motion passed 4/0. B. Establishing Temporary Road Restrictions — Enchanted Lane This item was removed from the agenda at Director Brown's request. C. Approve Plans, Specification and Authorize Advertisement for Bids for Sunnyvale Lane Improvements Engineer Hamby noted the meeting packet contains a copy of a resolution approving the plans and specifications for the Sunnyvale Lane improvements project and authorizing advertisement for bids. He explained that the plans and specifications are nearly complete. Sunnyvale Lane is located between Meadowview Lane and Eureka Road just south of the Valleywood Lane project. Sunnyvale Lane is a relatively short segment of roadway. The ads for bids would be out in about three weeks. Woodruff moved, Siakel seconded, Adopting RESOLUTION NO. 1.4 -058, "A Resolution Approving Plans and Specifications and Authorizing Advertisements for Bids for 2014 Sunnyvale Lane Improvement Project, City Project 14 -01." Motion passed 410. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES June 23, 2014 Page 1.2 of 19 10, GENERALINEW BUSINESS A. Credit Card Processing for Utility Bills Director Nielsen explained that the meeting packet contains a copy of a memorandum from staff asking Council for authorization to allow credit card processing for utility bills only and to enter into the agreements to make that happen for the use in the utility billing system. The process for accepting credit card payment is part of the new financial system software. Utility customers would be able to view their bills and payment history online and make a payment through an ACH debit from the customer's bank account or through a charge against their credit card. The third part processor would keep that information and process payments on an automatic recurring basis. Staff has 'identified two options for accepting credit cards. The first option is to do it as a regular merchant account. The City would be charged higher fees for each payment for that process. The fee is generally a percentage of the payment. With that the City has the option of charging a convenience fee (either a percentage amount or a flat fee) for the use of credit cards. Staff surveyed communities around the State and found that the vast majority of respondents do not charge a convenience fee. The second option is to set the City up as a utility; that would be the City's standard industrial code. There would be either a flat charge of S.75 through Visa or $.65 through MasterCard for each processed transaction. The average utility bill is around $100. Therefore, the fee would be about 2.5 percent for most customers. Under a regular merchant account it would be about a 4 percent fee for most customers. Under this option the City cannot charge a convenience fee. Staff has not done a detailed analysis of how much it would cost the City to do this. But, based on feedback from other cities it does not appear that more than 20 percent of the customers would pay by credit card automatically. That would bring the 2.5 percent for 20 percent of the customers to about .5 percent of the City's utility revenue being charged for this processing fee. It would cost the City around $10,000 if the 20 percent usage level were reached out of approximately $2 million in revenue. DeJong noted that staff is recommending Council adopt the resolution authorizing the City to enter into payment processing with Springbrook Software, its merchant processor, and credit card companies to participate in a credit card payment program for utility customers with no convenience fees charged to customers. Councilmember Siakel asked if the City gets a lot of requests from people to pay their utility bills by credit card. Director DeJong responded there are quite a few people who request that. Mayor Zerby noted that he thinks this is a great idea and that he spoke with Clerk Panchyshyn a while ago about it. It was high on Panchyshyn's list to add another service to the City's residents. He stated more people may pay the bill on time or ahead of time if this service were offered. And, that could result in some amount of cost recovery. Councilmember Siakel asked if this would lead to credit card payments for other things such as a dog license or permit fee. Director DeJong stated staff would have to come back with something separate for that and explained that what is being proposed is strictly for utility bills. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES .Tune 23, 2014 Page 13 of 19 Councilmember Woodruff stated the staff memorandum refers to the Visa Utility rate base and the other information talks about Visa utility bill pay. The memo or documents never mention MasterCard or other types of credit cards. The Merchant Partners Agreement refers to Visa, MasterCard, Discover and American Express. He asked if that means that the City can accept all four types of credit cards. Director DeJong responded yes. Director DeJong clarified MasterCard and Visa have the utility rate. Discover and American Express do not and therefore their fees would be higher. Councilmember Woodruff stated if this is approved he recommended staff pay attention to what it is costing the City in fees. Siakel moved, Zerby seconded, Adopting RESOLUTION NO. 14 -0599 "A Resolution Authorizing Staff to Enter into Payment Processing with Springbrook Software and heir Merchant Processor" for the utility payment option with no convenience fees charged to customers. Motion passed 410. B. Christmas Lake No Wake Restriction Request Director Nielsen explained the City received a request from the Christmas Lake Homeowners Association (CLHA) late the week of June 16 asking the City to enact Slaw -No -Wake restriction on Christmas Lake. The CLHA was concerned that with the high water Ievel in the Lake and having no Slow -No -Wake restriction that boaters in the area would be drawn to Christmas Lake because it was the only lake in the area without those restrictions. Mayor Zerby signed an emergency declaration on June 20, 2014, declaring a high water emergency for Christmas Lake and posting it as Slow -No -Wake. A notice of that was posted on the City's website, it was sent to a local newspaper and a Slow -No -Wake restriction sign was posted at the Christmas Lake access. To back that up staff is asking Council to consider a draft ordinance amendment that would give the City the authority to do a similar thing without adopting a special resolution. Section 109.01 Harbor Limits Established would be amended by basically adding a provision titled Emergency harbor limit. It is modeled after the City of Chanhassen's ordinance. In the amendment there is a provision for declaring an emergency. The amendment states that "Upon the placement of a slow -no -wake restriction, notice will be given: 1. On a sign at the public access. 2. On the City of Shorewood web page. 3. On the Community Cable Access Channel. 4. In an e- mail.format to known representatives on Christmas Lake. S. To the Hennepin County Sheriff's Department. 6. To the South Lake Minnetonka Police Department. 7. To the City of Chanhassen. S. To the public by other appropriate means determined by the City Council." The ordinance amendment would allow the Mayor to declare the emergency situation similar to what was done on June 20 with it being ratified by the City Council during its next regular meeting. CLHA President Joe Shneider provided photographs of the weir outlet for Christmas Lake. One photo shows the weir under fairly normal conditions and one shows the weir on June 19. The amendment includes language regarding operating at a slaw -no -wake speed that states "... whenever the water CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES ,Tune 23, 2014 Page 14 of 19 elevation reaches a point at which water flaws over the western edge of the weir ...." Staff recommends a formal elevation be included even if it means shooting the elevation of that same spot. Nielsen noted that staff recommends adoption of this amendment Councilmember Siakel stated she thought what is being proposed is reasonable and she thanked Mayor Zerby for taking action. She asked what the impetus is for removing the restriction. Director Nielsen stated the amendment states "The slow -no -wake restriction shall remain in place until the water has been 0.1 feet below the western edge of the aforementioned weir for three consecutive days, or 30 days from the enact »tent, of the restriction, whichever comes first." An extension could be applied for with the Minnesota. Department of Natural Resources. Councilmember Sundberg asked Mr. Shneider how the process worked on June 20. Mr. Shneider responded it worked fantastic. Mr. Shneider explained he received notification in an email from Administrator Joynes about 8:30 A.M. on June 20. It was posted about one hour later at the landing with a temporary sign before official sign was put up. Homeowners were notified by email which was about 75 — 80 percent of them. Inspectors at the landing were also notified. He, on behalf of the CLHA, thanked the City and Mayor Zerby for their fast action. Mr. Shneider noted that he attended a meeting earlier in the day at the Minnehaha Creek Watershed District (MCWD) along with Carver County Park Department and a number of lake homeowners associations. He stated it was very clear how different lakes are being handled. Having an ordinance in place like it is in Chanhassen is a wonderful way to handle this type of thing. He noted that Shorewood has responsibility for Christmas Lake. Sundberg moved, Woodruff seconded, Approving ORDINANCE NO. 514, "An Ordinance Amending Chapter 109 of the Shorewood City Code Relating Emergency Harbor Limit on Christmas Lake." Motion passed 410. Councilmember Woodruff asked if something similar has to be done for Lake Virginia because the City has responsibility for part of it. Director Nielsen clarified that there is only a channel in Shorewood. Mayor Zerby explained that based on information from the MCWD that because Lake Virginia is tied to Lake Minnetonka it is under the same rules. Councilmember Siakel clarified it is not. C. Community Sandbags Director Brown explained that late the week of June 16 the Lake Area Emergency Management Group (the Group) met with a number of the city administrators to discuss the many requests the Lake Area cities had been getting about sandbagging as well as a number of other issues. The Group struggled with the requests because none of the cities involved with the high water situation, including Shorewood, had a formal policy regarding sandbagging. Sandbagging can possibly prevent damage to home and structures or save land from being inundated with water. In order to address the issue there had been a recommendation for the cities to provide its residents on request with up to 25 sandbags at no charge provided they could show proof of residency in one of the communities. The residents were to pick up bags and fill them at the Shorewood Public Works facility or the Deephaven Public Works Facility. The direct cost to provide residents with 25 sandbags is $15.29. Personnel were needed at eaeh sandbag distribution station to monitor the disbursement of the bags and to CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES June 23, 2014 Page 15 of 19 collect the name and location of the residents and to determine how many were distributed to residents in each city. FEMA {Federal Emergency Management Agency} does not reimburse for private property ventures. Therefore, the communities would have to fund the effort. The Emergency Managers wanted to provide a good will offering to residents, but it is up to the cities to make that decision. He apologized to Council for it not receiving advance notification. He asked for Council direction. Mayor Zerby noted he also attended both emergency operations meeting on June 19 and June 20. He explained that during the June 19 meeting Excelsior Fire District (EFD) Chief Gerber lead a discussion about what the cities wanted to do. During that meeting Shorewood was asked. if it wanted to be a distribution point for some of the other Lake Area cities including Excelsior and Tonka Bay. Excelsior had indicated it did not have the facilities or staff to provide sand for its residents. It was his recollection that Tonka Bay had the sand but it did not have any bags. At that time he explained his opinion was the Shorewood should provide sandbags for its residents for free. Excelsior residents could pick up bags at Shorewood Public Works and then Excelsior would have to pay for those bags. There was discussion about the need to have an employee on site at the facility to monitor the operation and collect the necessary information, The South Lake Minnetonka Police Department (SLMPD) offered to help with that after hours and on the weekend being it was an emergency situation. It is his understanding from Director Brown that because there had not been staff at the Shorewood distribution station some bags seem to have gone missing. Director Brown stated there were approximately 250 -- 300 sandbags that were disbursed but not accounted for in part because there were a variety of people at the site. Some volunteers were there to help fill bags for Woodpecker Ridge Drive in Tonka Bay. Shorewood Public Works personnel were not there because they were attending to emergencies. Mayor Zerby noted that he received an email from Tonka Bay Mayor De La Vega thanking Shorewood and its Public Works Department for helping fill bags and place them at Woodpecker Ridge Drive. He questioned the appropriateness of Shorewood providing support to non - Shorewood residents. He clarified that he could also be talked into just being a good neighbor and helping out. He stated there are times that it is assumed that Shorewood will help out and sometime that is taken advantage o£ Councilmember Siakel noted there is also a cost for Shorewood to provide good will. Councilmember Siakel stated she thinks providing sand and bags for free is the right thing to do for Shorewood residents. She asked how the number 25 was arrived at and noted that she assumes 25 sandbags would not go very far. Mayor Zerby explained that was an arbitrary number and he thought it was because Director Brown was only able to secure a certain number of bags from Hennepin County Emergency Services. Those at the meeting thought there should be a maximum number. Siakel asked where the City gets its supply of sandbags and if they are readably available. Brown agreed that 25 sandbags do not go very far. Brown explained that on Sunday June 22 a vendor opened up its warehouse for Shorewood to come and get empty sandbags. Councilmember Woodruff stated that maybe Shorewood residents should just be given as many bags as they need and they would have to fill them at the Shorewood facility. There would not be a cost to theta. He did not foresee that residents would be told they could not get 40 bags. He noted that the City has to protect itself from a contractor, for example, coming and wanting to take 200 bags for a commercial job unless the contractor is doing a job for a Shorewood resident. Councilmember Siakel reiterated that Shorewood residents should get the bags and sand for free but residents from other cities in the group should be charged. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES June 23, 2014 Page 16 of 19 Councilmember Sundberg stated if she had the flooding issue at her property she did not know how she would deal with it. She would not know how to get the filled sandbags to her property, She then stated if there is a contractor wanting to get sandbags for a Shorewood resident's property she suggested letting them purchase the bags at the City's price provided they verify they need them for a Shorewood residential property. Councilmember Woodruff stated if a contractor was only going to get, for example, 50 bags for a resident he was not sure there should be a charge, If they want 100 — 200 bags that is a different situation. Councilmember Siakel asked Ralph Campbell, the owner of the property located at 450 Lafayette Avenue and present in the audience, if he had needed sandbags. Mr. Campbell stated he and his wife built their house last year and their neighbor decided to do the same this year. Therefore, he was fortunate to have builders next door when this happened. That builder advised them not to put sandbags around their house. It would take hundreds of sandbags. There is water creeping closer to their house and a little bit of it is seeping into the house. What they are looking at is restoration. Councilmember Woodruff agreed with Councilmember Siakel's suggestion that the bags and sand should be free to Shorewood residents and residents of other cities in the Group would be charged. He suggested charging for the direct cost of $15.29 only. He asked if that is administratively workable. Councilmember Sundberg reiterated her suggestion that contractors doing a job for Shorewood residents would not be charged for a reasonable number of bags. Mayor Zerby noted that during a meeting of the Group he asked the question about what to do if a preverbal little old lady calls and needs sandbagging. The response to that was that is when volunteers need to get involved. Director Brown asked for clarification about contractors. Councilmember Woodruff stated from his perspective if a contractor can prove they are doing work for a Shorewood resident they can pick up 60 — 75 bags at no charge. Administrator Joynes asked Council if it wants to provide sandbags to residents of Excelsior and Tonka Bay at a cost. Councilmember Woodruff responded he does not want to shut that off. Joynes explained there are joint powers agreements (JPAs) that already cover the cities in the South Lake area. They have a mechanism in place for billing cities for the cost for activities through the normal contributions of the JPA cities. He suggested bringing that up during the next EFD Board meeting to determine if there is a way for all of the EFD member cities to help manage the effort rather than having Shorewood and Deephaven taking on a larger role. Councilmember Woodruff stated that could be a good idea in the future. The EFD could use the Shorewood Public Works yard, Mayor Zerby stated Shorewood's Public Works Department does not work for the Fire Department, If this type of effort is going to be done through the Fire Department in a joint powers manner then the Fire Department needs to take the lead on this and create the stations to distribute the bags and sand, Administrator Joynes concurred with that because the EFD joint powers organization has a legal funding mechanism. He explained that if Shorewood were to help manage some of the effort it could charge back CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES June 23, 2014 Page 17 of 19 for its services and not just give its services for free. He stated the City can do what it wants for its residents; but, he thought it prudent to draw a line when it comes to other communities. Councilmem.ber Woodruff stated he would like to make sandbags available with the least burden to the people who need them. Councilmember Siakel reiterated that for the current situation the City should supply sandbags for the Shorewood residents that need them. She asked Public Works to beep track of the volume of people and materials for future reference. Mayor Zerby recessed the meeting at 8:58 P.M. Mayor Zerby reconvened the meeting at 9:02 P.M. 11. OLD BUSINESS 12. S'T'AFF AND COUNCH1 REPORTS A. Administrator and Staff 1. Monthly Financial Report Director DeJong stated because of his being involved with the conversion to the new financial utility system he did not have time to prepare the monthly financial report. He will email out the June report next week. 2. Trail Schedule Mayor Zerby noted the meeting packet contains a copy of the Trail Schedule. Other Director Brown explained that Public Works staff has been working with residents along Enchanted Lane and trying to do some flood protection. Staff will continue to protect that roadway with access being one - way in and then one -way out. He acknowledged that his crew has been doing a great job. They were out there on Saturday grading the roadway and again on Sunday for seven hours hauling material out there. They are waiting for additional material that they will then bring out there as well. There is one property at Woodside Road that that had a dramatic slope failure (i.e., mud slide) on the lake side. As a result one sanitary sewer structure was exposed; it still seems to be intact. Staff is working with the homeowner to ensure it stays intact and will review how the homeowner is going to restore the slope. Public Works staff has been involved with the sandbagging effort. Brown noted that the soils are very saturated; something everyone is well aware of. Because of that trees are starting to fall over. Should there be strong winds there will be associated issues with fallen trees. Mayor Zerby thanked Director Brown and his Public Works staff for all of their efforts and their tireless commitment to the City and its residents. CITY OF SHOREWOOD REGULAR COUNCIL ?MEETING MINUTES Jane 23, 2014 Page 18 of 19 Engineer Hornby explained that he has also been spending a lot of time dealing with drainage complaints and issues; more for individual residential lots. He stated he hopes he has responded to all of the voicemails be received. He spent a solid afternoon last week looking into them so he could respond to people. He has also been trying to keep projects moving forward. Director DeJong stated staff is in the process of converting to the new utility billing system.. The plan is to go live this week. Mayor Zerby asked what will be left to do on converting to the new financial system once that is done. Director DeJong responded the credit card payment component and the employee self- service component which will allow employees to look at their payroll history online and to entire their time sheets online. Director Nielsen stated the Smithtown Road east trail project is on track. The Galpin Lake Road trail project continues to move forward. There will be pre - construction neighborhood meetings in late August for that project. He then stated the City received a call from Minnetonka Portable Dredging today inquiring about what, if any, requirements it had to go through in order to start the restoration at the property along Woodside Road. Staff suggested moving along as fast as it could with the stabilization at least and dealing with the permits along the way. Administrator Joynes stated the South Lake Minnetonka Police Department (SLMPD) member City Administrators/Manager are in ongoing discussions about the structure for the SLMPD. It has looked at data the SLMPD Coordinating Committee requested. They are also talking about the possibility of hiring an interim director for the Department when SLMPD Chief retires. That will provide the time needed to look at various options. He then stated that he and Attorney Keane will bring to Council during its July 14 meeting an agreement between the City and the person who wants to relocate MGM Liquor to the old Heartbreaker site near the intersection of Smithtown Road and County Road 19. That whole process will give the City some flexibility and leverage to control a future redevelopment project for the Smithtown Crossing Study Area. Staff is currently research what the price of the property should be. He went on to state that efforts are underway to finalize the 2015 fire and police budgets. He noted that at Mayor Zerby requested staff provide Council an update on activities that were an outcome of the Council and staff retreat during February 2014. B. Mayor and City Council Councilmember Woodruff thanked Director Brown and his Public Works staff as well as anyone else that has been involved with activities on Enchanted Lane. He stated the situation could be dire. There are some residents who have vehicles they cannot drive off of the island. The situation for the City of Minnetrista is more challenging than for Shorewood. He thought it is under reasonable control. Woodruff asked for an update on the Valleywood Lane project. Engineer Homby explained the sand sub- base is in and the aggregate base is on. The contractor is waiting for things to dry out so cubing can be put in. There are two utilities that have to be relocated -- a gas main will be relocated the first week of July and a CenturyLink cable needs to be moved. Councilmember Siakel stated the good news is Valleywood Lane is not flooded. Engineer Hornby stated for one rain event there was a culvert under a driveway west of Meadowview Lane that was not large enough to handle the flow so it was flowing over Valleywood Lane. Staff is working with the contractor to install a larger culvert to keep the stormwater flowing. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINU1`ES June 23, 2014 Page 19 of 19 Councilmember Sund.berg thanked Director Brown and his Public Works staff for dealing with a fallen tree over the roadway in her subdivision. Staff responded very quickly. She stated that staff is very good with the residents and they are good at explaining what is going on. Mayor Zerby stated he heard from a property owner abutting Silver Lake informing him that the floating islands have beached themselves on the far end of the Lake. Zerby then stated he attended an SLMPD Coordinating Committee budget work session on June 18. The operating budget reflected a 3.5 percent increase over 2014. Shorewood's share of the initial proposed 2015 operating budget would be $1,079,358. During the discussion the budget was deemed to be quite lean. There was also discussion about using some of the unassigned fiend to help offset the very significant increase in the cost in workers' compensation insurance. If there were to be no increase in the special funds for operations the increase would only be 2.8 percent. Councilmember Siakel. and Mayor Zerby noted they attended the Country Fest event. Both thought it was good. 13. ADJOURN Sundberg moved, 'Woodruff seconded, Adjourning the City Council Regular Meeting of June 23, 201.4, at 9 :17 P.M. Motion passed 410. RESPECTFULLY SUBMITTED, Christine Freeman, Recorder ATTEST: Sew tt - -Zerb Ma or Je n Panchyshyn, GO C1&k