07-28-14 CC WS MinCITY OF SHOREWOOD
CITY COUNCIL WORK SESSION
MONDAY, JULY 28, 2014
MINUTES
1. CONVENE CITY COUNCIL WORK SESSION
5755 COUNTRY CLUB ROAD
COUNCIL CHAMBERS
6:00 P.M.
Mayor Zerby called the meeting to order at 6:02 P.M.
A. Roll Call
Present. Mayor Zerby; Councilmembers Hotvet, Siakel, Sundberg, and Woodruff, Finance
Director DeJong; Planning Director Nielsen; Director of Public Works Brown; and, City
Engineer Hornby
Absent: City Administrator Joynes, City Clerk Panchyshyn
B. Review Agenda
Sundberg moved, Woodruff seconded, approving the agenda as presented. Motion passed 510.
2. 2015 — 2019 CAPITAL IMPROVEMENT PROGRAM
Director DeJong noted the Mayor and several members of Council suggested starting discussions about
the Capital Improvement Program (CIP) earlier than they have started the past few years. He stated the
CIP is a planning document. It goes out 10 years with the focus being on the first five years. That
information is included in the City's Financial Management Plan. The discussion during this meeting will
focus on changes staff has identified for 2015 — 2019 when compared to the 2014 — 2018 adopted CIP.
There will also be discussion about some unresolved issues that are not included in the CIP and that staff
needs direction on. That direction will impact the CIP and the 2015 tax levy.
DeJong explained there are two changes to the Equipment Replacement CIP for 2015. There is the
addition of a Trail Plow for an estimated cost of $160,000 as recommended by Director Brown. The plow
will come with mowing attachments. The lead time for the plow is nine months out. That purchase
eliminates the need for the replacement of the Ford tractor /mower which was scheduled for 2015 for an
estimated cost of $84,000. That results in an approximate increase to this CIP of $76,000 not including
the trade in value for the tractor.
Director Brown explained many communities are going to the type of plow he has recommended. The
City of Edina has five of them. The City of Hopkins has some also. The machine is four feet wide.
Plowing roadways is the City's priority during the snow season. The snow is plowed on to the boulevards
first. Then the trails get plowed. That can take 2.5 — 3 days and some residents complain about that. The
machine proposed can move at a reasonable speed very efficiently. He has resisted recommending that
the City purchase a single - purpose machine for many yews. He went to look at the plow after he found
out a boom attachment can be purchased for the machine. Currently staff rides on an open machine (there
is no cab). One operator has been hit by debris. The operator has to drive the mower into the ditches and
sometimes the mower gets stuck. The proposed machine can stay on the roadway and the operator can
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July 28, 2014
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ride enclosed. Staff thought plowing the Smithtown Road west sidewalk with the wing -plow would work
okay. Unfortunately, it caused some damage to the curbs and the surface.
Mayor Zerby asked staff to comment on the nine month lead time from order to receipt. Director Brown
stated that is what he has been told. He then stated he spoke with a vendor who intends to order six of
them and he offered to reserve one for Shorewood. The vendor thought he would not have any problem
selling it if Council does not approve that purchase.
Councilmember Hotvet asked if the trail plow can be used on all types of trail / sidewalk surfaces.
Director Brown stated it will work on concrete, asphalt or gravel surfaces. Mayor Zerby asked if it will
work on the LRT. Brown responded yes.
Councilmember Woodruff asked if the purchase was made in 2015 would the City be able to take
advantage of the sales tax exemption. Director DeJong clarified the City is already eligible for that
exemption.
Councilmember Siakel stated if Council is committed to responding to people wanting trails then staff
has to have the tools and equipment to do the job. The trail plow seems to be a reasonable purchase.
Councilmember Sundberg concurred and stated she thought it would be a prudent use of funds.
Councilmember Hotvet stated the purchase is less expensive than repairing a damaged trail each year.
Director DeJong explained there are two changes to the Street Reconstruction CIP. Strawberry Lane /
West 62 "d Street to Cathcart Park have been added in 2019 for an estimated cost of $1,365,000. That
would bring the Street Reconstruction Fund into a deficit state in 2019 if something is not done for
additional financial resources. Eureka Road North was also added in 2019 for an estimated cost of
$260,000. For a number of years it had been planned as a Minnesota State Aid (MSA) road and the
improvement would have been mostly paid for with MSA funding. Because the roadway will not be
reconstructed to State standards it has to be paid for out of the Street Reconstruction Fund which is
funded through tax levies. Strawberry Lane / West 62nd Street have also been added in 2019 to the Trail
Construction Fund and to the Stormwater Management CIP each for an estimated cost of $345,000. It
would cost around $800,000 for a trail along Strawberry Lane / West 62nd Street if it were to be
constructed as a standalone project.
Councilmember Woodruff stated something has to be done with Enchanted Lane. There is no funding in
the budget for 2014 or 2015 for that. Director DeJong stated he has that highlighted as an unresolved
issue on his next slide.
Woodruff explained that during 2010 Council had extensively discussed the possible reconstruction of
Star Circle and Star Lane. The reconstruction had been scheduled for 2011. The property owners along
those two roadways were extremely vocal about not wanting that done. They thought it was not necessary
and a waste of money. That project was terminated. Those roadways are in the 2015 Street
Reconstruction CIP for an estimated cost of $453,000. He suggested doing something less than
reconstruction for those roadways and save maybe one -half of the cost. There is also a line item in the
Water CIP and in the Stormwater Management CIP for those two roadways. Some of that may not be
necessary.
Woodruff then explained that during 2007 Council had extensively discussed the possible reconstruction
of Amlee Road, Manitou Lane and Glen Road. The reconstruction had been scheduled for 2008. The
property owners along those roadways were extremely vocal about not wanting that done. The property
owners along Glen Road were adamant about not granting the City any easements. That entire project
was terminated. A mill and overlay of some of the roadways was done. Amlee Road and Manitou Lane
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July 28, 2014
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are back in the 2016 Street Reconstruction CIP for a combined amount of approximately $650,000. He
thought there were less than 16 houses along those two roadways. There is no thru traffic on those
roadways. He does not think that is a worthwhile expenditure. He thinks something much less expensive
could be done while still meeting the needs of those residents. There is also a fine item in the Stormwater
Management CIP for those two roadways and some of that may not be necessary.
Woodruff stated the money saved by cutting back on the projects he just mentioned could be used to help
fund Strawberry Lane / West 62 "a Street improvements.
Mayor Zerby asked how Amlee Road fits into the 20 -year Pavement Management Plan (PMP).
Director Brown explained that when the underlying soils become saturated the soils start to move around.
It is not as cost effective to do a mill and overlay when that is the case. A nice surface will be put down
and in five years that surface will look the same as it did before the work was done. Pavement
reclamation is very similar. The decision flow chart used to help in deciding whether a roadway should
be reclaimed or reconstructed takes the condition of the underlying soils into consideration. Soils that
move around make reconstruction necessary from an engineering perspective. Council could decide just
to have a mill and overlay done. But that may not be the best investment dollar for dollar for asphalt. The
City would get a few years out of it.
Engineer Homby explained that during the first few months of spring and summer he had contact with
quite a few residents from the Amlee Road, Mannou Lane and Glen Road area. He thought there is a
desire to have drainage improvements. There are some lots that are landlocked. The stormwater has
nowhere to go. When it overflows it ends up in houses. He noted a handful of residents were very willing
to donate easements and work with the City on a solution.
Councilmember Siakel stated Strawberry Lane needs significant improvements. It should be done right. It
would be nice if that could be done sooner than 2019, including the sidewalk. She suggested revisiting
the 20 -Year PMP to see if the priorities could be adjusted in order to fit Strawberry Lane in sooner. She
noted the City just redid two roadways without extending watermain because residents did not want to be
assessed for that extension. She asked if the reconstruction of those two roadways could have been
pushed out. Or, did they get reconstructed because of their placement in the PMP.
Director Brown clarified the 20 -Year PMP is based on a philosophy set by Council. He explained the
roadways were rated based on the Pavement Surface Evaluation and Rating (PASER) System. He rerated
the City roadways, with the exception of those on the Islands, last fall. The philosophy was to maintain
roads to a rating of four or better. The ratings help set the priorities in the PMP. That is why those two
roadways were reconstructed.
Councilmember Siakel clarified she was not criticizing previous decisions that were made. She asked if
there is a less expensive option that would meet the true needs of the neighborhood. She noted that she
does not claim to be a roadway improvement expert. She asked if there would be value in reassessing the
PMP. She stated she views Strawberry Lane, Summit Avenue and Enchanted Lane as the priorities.
Councilmember Sundberg stated if a neighborhood is adamantly opposed to a roadway improvement she
asked if that is taken into account when making a decision about what to do. Director Brown stated the
20 -Year PMP is based on technical analysis. Staff leaves the politics to Council. Sundberg stated if a
roadway improvement is put off because of residents' opposition she asked what the ramifications are to
the City. Brown explained the City ends up spending additional funds to patch. He noted the City has a
responsibility to make sure there is safe travel.
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July 28, 2014
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Director Brown stated that 50 percent of the people want a roadway reconstructed and 50 percent don't.
Council and staff get caught in the middle when there is a roadway that continually has band aid repairs
made to it. Residents eventually start to complain that the City only makes band aid repairs to their
roadway. When the City decides to again reconstruct it the other portion of the residents show up to
oppose that. That is what happened with Star Lane and Star Circle.
Councilmember Woodruff stated Council makes the political decision after considering technical input
from the engineers and resident input. He noted that in some cases there is no right answer. He then
stated that Strawberry Lane is a 2019 funding issue. He suggested putting that funding issue off. He then
suggested having serious discussion about what to do with Star Lane /Star Circle and Amlee
Road/Manitou Lane. He clarified he is not proposing any CIP budget changes at this time with the
exception of funding for Enchanted Lane. He stated there is a lot of money in the Street Improvement
Fund and that will not be exhausted in the next 18 months. Therefore, there is enough money to improve
Enchanted Lane with existing money knowing that the money needs to be replaced.
Councilmember Siakel asked if the real issue for Star Lane/Star Circle and Amlee Road/Manitou Lane
projects was the watermain extension that was proposed as part of the projects. Mayor Zerby clarified
that some of the opposition had to do with the proposed design of the roadway. For example, the width of
the roadway, curbing, cul de sacs and so forth.
Councilmember Woodruff stated from his perspective for Star Lane and Star Circle a number of residents
opposed spending their tax dollars to reconstruct the roadways. They did not think it was necessary based
on the number of cars that travelled the roadways. Some of them did not think it was in that bad of a
condition. He suggested making another run at it. He then stated it is his understanding there are a
number of stormwater management issues in the Amlee Road and Glen Road area. Based on discussions
the last time those roadways were considered those issues could only be addressed if the roadways were
reconstructed. The residents along Glen Road were up in arms about reconstruction. They were told the
stormwater issues could not be addressed without reconstructing the roadway. The residents accepted
that. He does not recollect the residents along Amlee Road and Manitou Lane being as vocal.
Mayor Zerby stated when a roadway has decayed to a certain level it will more quickly become necessary
to make more expensive repairs. Council needs to decide if reconstruction or reclamation needs to be
done to ultimately save all taxpayers money. He noted that roadway improvements are funded out of the
General Fund.
Councilmember Siakel asked staff to rerate the roadways being talked about and bring that to Council for
discussion.
Councilmember Woodruff suggested discussing Star Lane and Star Circle in a work session. He noted
that watermain extension has not been taken off of the table.
Mayor Zerby stated that multiple times he has stated that anytime watermain extension is going to be
considered that discussion should begin two years in advance of construction starting. He noted that a
work session discussion about this is most appropriate.
Zerby asked to move on to something else.
Director DeJong highlighted what staff thinks are a number of unresolved issues.
➢ Park Improvement CIP — The Park Improvement CIP reflects $523,000 for improvements to
Badger Park with $118,000 of it being in 2014. The engineer's estimate is over $1 million
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July 28, 2014
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regardless of which concept is chosen. He thought it is unlikely the $118,000 budgeted for 2014
will be spent because a decision has not been made about what improvements should be made.
➢ Equipment Replacement CIP — The purchase of a snow plow in 2015 has been added for an
estimated cost of $160,000. That will be partially offset by the elimination of a tractor /mower
replacement for $84,000.
➢ Street Reconstruction CIP — Shady Island Road and Enchanted Island are only scheduled for seal
coat in 2017. They are scheduled for a mill and overlay in 2023 and 2024 respectively.
Strawberry Lane / West 62 "d Street improvements are now projected to be a reconstruction
instead of a mill and overlay. Eureka Road North improvements will not be to MSA standards
and therefore will be fully paid for by the City. The only upcoming MSA projects are trails. The
trail along Strawberry Lane will not be eligible because that roadway is not MSA eligible. Nor is
West 62 "d Street MSA eligible.
➢ Trail CIP — The Strawberry Lane trail has been added to the Trail CIP in 2019 because the cost to
build the trail when Strawberry Lane is reconstructed reduces the trail cost significantly.
➢ Stormwater Improvement CIP — Stormwater improvements in the Strawberry Lane / West 62 "d
Street areas are included in 2019 CIP although undecided. Eureka Road North area
improvements are undecided and not in the CIP. There is nothing included in the CIP for
improvements to address the stormwater management issues in the Shorewood Oaks
development, Freeman Park and adjacent areas to the northwest that have recently been
discussed.
Mayor Zerby stated there have been a couple of new house construction projects over the last couple of
years. He asked how much in park dedication fees have been collected. Director DeJong stated the City
received $55,000 in 2013 and the budget projection for 2014 is $30,000. That anticipates six new houses
on lots that do not currently have a house on them.
Councilmember Woodruff stated he thought the park dedication fees go into the General Fund. Director
DeJong clarified they go into the Park Improvement Fund and noted there is a $42,000 transfer into that
into that Fund from the General Fund planned for 2014 — 2019.
Woodruff explained Director DeJong's staff memorandum stated the 2013 year -end balance in the Park
Improvement Fund was approximately $213,000. At the beginning of 2014 about $280,000 was
transferred into the Fund from the proceeds of the sale of the City -owned property right behind City Hall.
Therefore, there is almost $500,000 in the Fund. Director DeJong clarified that the 2014 transfer in
budget of $325,414 includes the approximate $287,000 from the proceeds plus the $42,000.
Director DeJong explained that the $133,000 for park capital improvements in the 2014 Park
Improvement Fund includes the $118,000 for Badger Park Improvements. The projected 2014 year -end
balance in the Fund is approximately $436,000 and an additional $42,000 will be transferred in at the
beginning of 2015.
Councilmember Siakel stated the City ought to be able to get some Badger Park improvements done with
that amount of money if they are broken apart. Mayor Zerby noted that the Park Improvement CIP has
$70,000 for field improvements, $175,000 for parking and road improvements, and $157,000 for Park
Amenities.
Siakel asked if a decision has been made about the orientation of the field in Badger Park. Director
Nielsen stated the Park Commission still prefers the north/south orientation. Nielsen noted the engineers
have been directed to create a Concept 1.5 plan and that the Commission will discuss that concept during
its August 19 meeting.
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July 28, 2014
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Councilmember Hotvet stated that she served as the Council Liaison at the Park Commission meetings
January — June 2014. It is her understanding that the Commission would like to get improvements to the
field started soon. She asked when a decision about orientation has to be made. She thought field
improvements are a top priority for spending some of that money.
Councilmember Sandberg expressed concern about doing much to Badger Park before the direction for
the Southshore Community Center (SSCC) is known. Planning for the Park and the SSCC should be done
simultaneously to ensure there is a harmonious fit. She noted she might needlessly be worrying about
that.
Councilmember Hotvet expressed concern about continually moving improvements to the field off. She
stated establishing turf is a multi -stage process.
Councilmember Siakel stated based on discussion it seems that if there is going to be a field in Badger
Park it will basically be in the same location. It just needs to be reconstructed. She noted she can support
moving forward with that reconstruction. She stated that before any other major improvements are made
there needs to be a decision about the SSCC.
Councilmember Woodruff suggested considering doing the field and the parking lot in 2015
Councilmember Siakel noted it was more than just the park parking lot that needs to be improved. The
entrance to the SSCC was included in parking and road improvements. Councilmember Woodruff stated
he considered that a detail and suggested a reasonable placeholder for parking and road improvements be
included in the 2015 CIP. The discussions about specifics can be had after the budgeting process.
Woodruff then stated that the amounts in the CIP are not representative of what the current cost estimate
will be based on what Director Nielsen has stated. Director DeJong clarified the amounts if the CIP are
old. Woodruff suggested plugging the current amounts into the CIP.
Councilmember Siakel stated there will a surplus in General Fund reserves (reserves above the 60
percent policy maximum) at the end of 2014. She noted that she would be comfortable spending about
$80,000 of that to help fund the purchase of the snow plow for trails because it is a one -time purchase.
Councilmember Woodruff stated he has told the Park Commission that if the City needs to spend
$500,000 on Badger Park improvements in 2015, noting that he does not think that is the case, staff and
Council could probably figure out how to come up with that. He noted that he does not want to run the
Park Improvement Fund to zero. He stated that another $42,000 will be transferred into the Fund in 2015
and there will be another $50,000 of park dedication fees. Director DeJong cautioned against assuming
that there would be $50,000 in park dedication fees because the $55,000 in 2013 was the highest amount
received in ten years.
Councilmember Siakel stated there was discussion about the safe routes to school (SRTS) grant
opportunity a number of years ago. A trail along Strawberry Lane connects with the Minnewashm
Elementary School. She asked staff to provide an update on the SRTS grant program during Council's
next meeting. She would Iike to know: what the grant consists of; what has to be done to apply for it; is
there a staff member in place who will execute that; and, how long it will take to put a SRTS plan in
place and prepare an application.
Mayor Zerby noted that Director Nielsen has stated that the Planning Commission has been discussing
SRTS.
CITY OF SHOREWOOD WORK SESSION MEETING MINUTES
July 28, 2014
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Director DeJong explained that Director Brown has informed staff that the inspection of the West Water
Tower (the one near the Minnewashta Elementary School) has been completed. During the inspection it
became apparent that there was ice damage caused by last winter's extreme cold. Those repairs, in
addition to the planned rehabilitation work on the Tower, will necessitate an extended time out of
service. Therefore, the rehabilitation and painting project needs to be postponed until spring of 2015. The
Radi0 /ISP Communication project will also be postponed until after the Water Tower project is
complete.
He reiterated that the 2010 discussion about extending watermain along Star Lane and Star Circle as part
of the proposed reconstruction project was very contentious. He stated that it may be better to do just a
mill and overlay rather than reconstructing the two roadways. He noted that three or four property owners
have indicated they have arsenic issues in their well water. The rest were adamantly opposed to
municipal water being installed.
DeJong explained that Eureka Road North is scheduled for reclamation in 2019. That precludes a full
sewer system being installed. The types and costs of improvements needed to address at least some of the
stormwater management issues in that area are not known at this time.
Director Brown explained he and Engineer Horaby have taken complaints for many years about
stormwater issues in the Shorewood Oaks area, the Strawberry Lane area, Peach Circle area and the areas
downstream from there out towards Grant Lorenz Road. The stormwater ultimately crosses Smithtown
Road and flows adjacent to Grant Lorenz Road and out to Edgewood Road. The grades between those
areas are extremely flat. About one year ago staff started to discuss a potential major conveyance system
to address that entire area. That would be a comprehensive approach. New development and expansion
opportunities would be factored in. That type of system would be very expensive. But, it would be there
for the long term.
Engineer Hornby explained the area to the east of Eureka Road South over to a little west of Cathcart
Drive has been very problematic especially over the last couple of years. Because the area is so flat, it
will take some major facilities to get the stormwater out of there. From an engineering perspective it
would be best to try and combine those areas into one stormwater management system. It may be difficult
to do that because of the flat grade but at least it should be considered. A drainage study needs to be done
that covers that area. The goal should be to drain the stormwater to the north.
Mayor Zerby asked if staff intends to involve the MCWD in the study. Engineer Hornby responded yes
and stated the MCWD should be involved early on. Hereby explained that once stormwater is put into
pipes rather than into open channels the ability to filtrate it is taken away. Therefore, the goal would be to
use basins to control volume and rates and possibly recharge some of the local groundwater table. Having
the MCWD involved would be a good idea. Director Brown stated that from his perspective this will
likely result in the Freeman Park wetland project resurfacing as part of the effort. It would be a key
component.
Zerby noted that Shorewood taxpayers pay a significant amount of tax that goes to the MCWD. It would
be nice if some of that could come back to the City to help with stormwater management improvements
which would help out the MCWD as a whole.
Councilmember Woodruff stated he would like staff to write a direction statement with very high level
costs and then have a serious discussion between Council and staff. He then stated that about seven years
ago the then Council approved an analysis that included a list of prioritized the drainage problem areas
within the City. Some of the problematic stormwater management areas that have been discussed were
included in that list. Others were not. A number of the problem areas have been addressed over the last
CITY OF SHOREWOOD WORK SESSION MEETING MINUTES
July 28, 2014
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few years. He suggested creating a long -term stormwater management plan somewhat like the 20 -Year
PMP.
Director Brown stated the answers Councilmember Woodruff is looking for will not be known until a
drainage feasibility study is done.
Councilmember Woodruff suggested funding for the feasibility study be included in the 2015 budget.
Mayor Zerby stated he appreciated discussing the CIP early in the budget process and he would like to do
that going forward.
3. ADJOURN
Woodruff moved, Hotvet seconded, Adjourning the City Council Work Session of July 28, 2014, at
6:57 P.M. Motion passed 5/0.
RESPECTFULLY SUBMITTED,
Christine Freeman, Recorder
ATTEST:
lea -r— PhImIky -1-4 :
Jea&Panchyshyn, City Cleriff