08-25-14 Reg Mtg MinCITY OF SHOREWOOD
CITY COUNCIL REGULAR MEETING
MONDAY, AUGUST 25, 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 7:00 P.M.
A. Roll Call
Present. Mayor Zerby; Councihnembers Hotvet and Siakel; Attorney Keane; City Administrator
Joynes; City Clerk Panchyshyn; Planning Director Nielsen; Director of Public Works
Brown; and City Engineer Hornby
Absent: Councihnembers Sundberg and Woodruff; Finance Director DeJong
B. Review Agenda
Administrator Joynes asked that Item 10.13 Adopting the Preliminary General Fund Budget and Tax Levy
and Item 10.0 Selection of the Truth -in- Taxation Hearing Date be moved to Council's September 8,
2014, regular meeting agenda. The work session that had been scheduled for immediately before this
meeting had been cancelled because Councilmembers Sundberg and Woodruff were not going to be in
attendance. During the work session there was going to be additional discussion about the proposed
forester f environmental specialist position before the preliminary Budget was adopted. He noted the State
of Minnesota has changed its rule about when maximum tax levies have to be certified by. The new date
for certification of the City's maximum tax levy is now September 30; it used to be September 15.
Zerby moved, approving the agenda as amended.
Councilmember Siakel asked why the maximum levy cannot be set because Council discussed a
maximum levy of 2.5 percent. Administrator Joynes explained there had been questions about whether the
proposed position should be full time or a 0.75 full time equivalent (FTE) position. There are some issues
coming up. For example, earlier in the day he forwarded to Council South Lake Minnetonka Police
Department (SLMPD) Chief Litsey's Supplemental Traffic Enforcement Proposal. The cost for that has
not been included in the preliminary 2015 . Budget.
Siakel seconded. Motion passed 310.
2. APPROVAL OF MINUTES
A. City Council Work Session Minutes, August 11, 2014
Siakel moved, Hotvet seconded, Approving the City Council Work Session Minutes of August 11,
2014, as presented. Motion passed 310.
B. City Council Regular Meeting Minutes, August 11, 2014
CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES
August 25, 2014
Page 2 of 9
Hotvet moved, Siakel seconded, Approving the City Council Regular Meeting Minutes of August
11, 2014, as presented. Motion passed 310.
3. CONSENT AGENDA
Mayor Zerby reviewed the iterns on the Consent Agenda.
Siakel moved, Hotvet seconded, Approving the Motions Contained on the Consent Agenda and
Adopting the Resolution Therein.
A. Approval of the Verified Claims List
B. New Liquor License Request from MGM Liquors Location 5660 County Road 19
(This Item was moved to Item 10.1) Under General /New Business.)
C. Accept Proposal for Professional Design and Installation of Electrical Controls and
Programming, West Water Tower
D. Adopting RESOLUTION NO. 14071, "A Resolution Approving Change Order No.
3 for Valleywood Area Improvements, City Project 13 -01."
Motion passed 310.
4. MATTERS FROM THE FLOOR
There were no matters from the floor presented this evening.
5. PUBLIC HEARING
None.
6. REPORTS AND PRESENTATIONS
None.
7. PARKS
A. Report on the August 19, 2014 Park Commission Meeting
Chair Mangold reported on matters considered and actions taken at the August 19, 2014, Park
Commission meeting (as detailed in the minutes of that meeting).
Mayor Zerby stated he welcomed the idea of him, Chair Mangold, Director Nielsen and maybe another
member of Council meeting with representatives from the City of Chanhassen about participating in the
improvements to Cathcart Park because the new development in Chanhassen is not far from the Park. He
asked Director Nielsen to reach out to his counterpart at Chanhassen. He then stated he appreciated the
Park Commission's efforts.
Counciimember Hotvet stated she likes the master plan approach the Commission wants to take for the
City's parks.
CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES
August 25, 2014
Page 3 of 9
8. PLANNING
A. City Code Amendment to Chapter 500, Noise Ordinance
Director Nielsen stated that for many years there has been discussion about the City's lack of a noise
ordinance. He explained that there are construction noise regulations that are imposed as part of the
building permit process. But, there are many hours of operation for various things that are not currently
enforced by the police because the City does not have any regulations in its code for them. The Planning
Commission has been working for about two years on a draft noise ordinance. (A copy of it was included
in the meeting packet.) The Commission wanted the City's regulations to be similar to those in the other
cities in the South Lake area; most importantly the City of Excelsior. The hours of operation proposed in
the draft ordinance are relatively consistent with Excelsior's with some minor exceptions. He stated the
police should be able to enforce the regulations. He noted the Commission unanimously recommended
approval of the noise ordinance.
Mayor Zerby asked how noise is defined. He has not found that definition in the draft ordinance. Director
Nielsen noted it is not defined. Nielsen explained the approach taken was to limit the hours noise
generating activities can take place. There are noise levels in the Zoning Code that are consistent with the
Minnesota Pollution Control Agency's (MPCA's) noise level guidelines but they are for sustained noise.
Unfortunately, most noise complaints the City receives are about intermittent noise and there is no good
way to measure the noise level.
Zerby stated he has heard comments from residents about the noise generated from pumps on hot tubs
because the pumps run almost continuously. He asked if that would be considered as a noise issue.
Director Nielsen stated that is a sustained noise and if the noise level exceeds the MPCA's guidelines then
that issue could be addressed if the City receives a complaint.
Zerby then stated that from his perspective and from the perspective of residents in his neighborhood a
6:00 A.M. start time for refuse hauling is quite early. In his neighborhood that seems to be the start time
and there are a number of trucks that come through the neighborhood at that time. He suggested the start
time be changed to 7:00 A.M. which is the same as Excelsior's. Councilmember Hotvet stated that would
make her nervous because high school students are out waiting for the school bus at 7:00 A.M. on school
days in her neighborhood along Strawberry Lane.
Councilmember Hotvet expressed concern about the proposed time exception for homeowner or occupant
residential construction, repairs, or maintenance activities which includes lawn maintenance. The
proposed allowable hours are between 9:00 A.M. and 6:00 P.M. on Sundays and public holidays. She
stated there are times lawns are being mowed after 6:00 P.M. especially if a person has been gone over
the weekend. She suggested the hours be changed to between 8:00 A.M. and 8:00 P.M.
Councilmember Siakel noted that enforcement is complaint driven. She stated she can support the
proposed changes.
Siakel moved, Zerby seconded, Approving ORDINANCE NO. 516 "An Ordinance Amending Title
500 of the Shorewood Zoning Code, Regarding Nuisances (Noise)" subject to changing the weekend
hours of operation for domestic power equipment to between 8:00 A.M. and 8:00 P.M., changing
the start time for refuse hauling to 7:00 A.M., and changing the exception for residential
construction, repairs or maintenance, including lawn maintenance, conducted by the homeowner or
occupant be permitted between the hours of 8:00 A.M. and 8:00 P.M. on Sundays and public
CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES
August 25, 2014
Page 4 of 9
holidays; and, Adopting RESOLU'T'ION NO. 14-0729 "A Resolution Approving Publication of
Ordinance No. 516 by Title and Summary." Motion passed 310.
9. ENGINEERINGIPUBLIC WORKS
A. Rejecting Bids for the Galpin Lake Road Sidewalk Project, City Project 13 -06
Engineer Hornby explained that on August 19, 2014, bids were opened for the Galpin Lake Road
sidewalk project. The City received four bids with the lowest bid submitted by Rosti. Construction of
Jordan, Minnesota, in the amount of $1,219,919.00. The City's portion of that is $1,055,152.82 and the
City of Chanhassen's portion is $164.766.18. The feasibility report construction amount for the six -foot-
wide trail /sidewalk was $689,908.45. The Capital Improvement .Program (CIP) allocated $680,100 for the
construction of the project and that includes Minnesota State Aid (MSA) funding. The City will be
allocated about $220,000 in MSA funding for the 2015 construction season and the City's current
unencumbered amount is about $72,000. The reason staff recommends Council reject the bids is related to
the C1P and the feasibility report. The engineer's estimate for the project was $1,174,500 as designed. The
staff for Chanhassen has indicated it is considering recommending the Chanhassen Council also reject the
bids during that Council's September 8 meeting.
He has spoken with a couple of the contractors. The lowest bidder thought it would be important to
construct the retaining walls this year so they can go through a freeze /thaw cycle. One of the higher
bidders indicated they could not bring its bid down much because they thought it was too little work in a
very complex project corridor. Staff has found out that overall bids have been coming in high this fall
mainly because of the compressed construction season. Basically May and June were lost out in the
construction season. There are some unknowns also. For example, there is uncertainty about the cost of
the pavement which is oil based for 2015.
Hornby noted that the lowest bid received without the intersection improvements is 42 percent above the
feasibility amount. He also noted that the Smithtown Road west sidewalk project was a $1.3 million
dollar bid project. The Galpin Lake Road sidewalk project bid is about $1.1 million and it is half the
length of the Smithtown Road sidewalk.
Mayor Zerby stated he is aware that construction bids have been coming in high for many projects. He
cited the example of the Three Rivers Park District (TRPD) LRT overpass project at County Road 19.
TRPD was taken aback by the high bids it has received for the project.
Councilmember Hotvet asked why the feasibility report projected cost and the bid amounts are so far
apart. She stated that disparity is shocking, alarming and frustrating for her.
Engineer Hornby explained that is in part because of the time of the bids and the compressed construction
season which were not taken into account in the feasibility report. Hornby noted that some changes had
been made to the design when compared to the feasibility report. A realignment of the intersection of
Galpin Lake Road and Mayflower Road was added. That was done to eliminate the need to acquire right
of way, reduce the impact on wetlands, to assist with drainage improvements and to include geometrics to
provide traffic calming. Originally the project would have had 2,600 square feet of wetland impact. The
permit submitted has 200 square feet of permanent impact to wetlands. Also, the feasibility report
included pricing for a boulder retaining wall. That type of wall has to be fit back further. In order to
reduce the impact on wetlands the design was changed to a modular block retaining wall and that costs
about twice as much as the boulder wall. The cost for the retaining wall is almost $300,000.
CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES
August 25, 201.4
:page 5 of 4
Couneihmember Hotvet asked if it is typical to be 50 percent off. She asked what the discrepancy was
between the feasibility report and the final bill for the Smithtown Road sidewalk project. Engineer
Hornby stated he does not recall.
Director Brown stated the bidding market is highly escalated because of the compressed construction
season. That is the primary factor for the discrepancy. He then stated from his perspective he thought the
City would receive a better compliment of bids if the project is rebid next spring. lie explained lie is
nervous when any project is opened in the fall because fall can be a wet season. And, his apprehension
would be significantly increased because of the complexity of the project. He recommended the project be
rebid next spring and noted that the project would not have been completed in 2014 anyway.
Councilmember Hotvet asked if staff anticipates a normal bidding climate in the spring. She also asked if
there needs to be a full frost cycle before signing off on the retaining wall. Engineer Hornby stated a full
frost cycle is preferred and noted that in the spring bidding process there will be something included that
allows for some time for the wall to settle before the bituminous trail is put down. Director .Brown stated
he hopes a normal bidding climate will come back in the spring but that is somewhat like trying to predict
the stock market.
Councilmember Hotvet asked that except for the few changes in the design when compared to the
feasibility report, if the design costs and the feasibility report projected costs are somewhat equal.
Director Brown noted that the feasibility study process is a solid process and staff stands behind the costs
in the feasibility report, That is what the market has bared out previously. He explained when contractors
are compressed because of climate changes the bidding reflects that.
Engineer Hornby stated from an engineering perspective WSB & Associates has been seeing high bids
this fall.
Administrator Joynes explained that the TRPD overpass project was estimated at $3 million and bids
came in at $4.5 million and it had two other projects that had about that same ratio. He related that TRPD
Board Chair Gunyou has stated that for some of the larger projects there is competition with the new
Vikings stadium relative to things such as personpower and materials. He stated there have also been five
years when the construction industry has shrunk because of companies going bankrupt. There are a surge
of projects and there are fewer people to do them this year at the same time as there are bigger projects
consuming the assets.
Engineer Hornby stated staff is still working on some agency permitting items and noted that he thought
they are relatively minor. He wants to keep that moving forward so the project can be rebid in the spring.
Mayor Zerby noted that trail schedule indicates the Smithtown Road east walkway project is scheduled to
be bid in May 2015. He asked if there could be economies of scale if the two projects were bid together.
Engineer Hornby noted that he has spoken to contractors about that and they indicated more work could
result in a more favorable cost.
Siakel moved, Zerby seconded, Adopting RESOLUTION NO. 14 -0739 "A Resolution Rejecting Bids
for Galpin Lake Road Sidewalk Improvement Project, City Project 13 -06" and directing staff to
rebid the project in the spring of 2015. Motion passed 310.
B. Approve Plans and Specification and Authorize Advertisement for Bid for the 2014
Mil and Overlay, City Project 14 -04
CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES
August 25, 2014
Page 6 of 9
Engineer Hornby noted the meeting packet contains a copy of the title sheet for the 2014 Mill and
Overlay Project. It shows which roadways are included in the Project. The roadways are also listed in his
memorandurn dated August 25, 2014..He also noted. the 2014 Capital Improvement Program has allocated
$264,000 from the Street Reconstruction fund for the Project. He stated staff is asking Council to adopt
the resolution approving plans and specifications and authorizing advertisement for bids for the Project.
The bid opening will be at 10:00 A.M. on September 18, 2014.
Siakel moved, Hotvet seconded, Adopting RESOLUTION NO. 14 -0741 "A Resolution Approving
Plans and Specifications and Authorizing for Advertisement for Bids for 2014 Bituminous Mill &
Overlay Project, City Project 14 -04." Motion passed 310.
10. GENERAL/NEW BUSINESS
A. Approval of the Joint and Cooperative Agreement II with the Lake Minnetonka
Communications Commission
Mayor Zerby explained the approval of the Joint and Cooperative Agreement lI with the Lake
Minnetonka Communications Commission (LMCC) is basically a housekeeping item. The current
Cooperative Agreement had been amended several times during the many years the LMCC has been in
existence. Because of the amendments there were some things that were not easily clear. The attorney for
the LMCC had been directed to rewrite the Agreement so it was simpler and easier to understand. There
are no real changes to the City. He noted that in 2013 the current Agreement was amended to allow 70
percent of the LMCC member cities to make a change to the Agreement; it had previously required all
member cities to approve a change. He recommended approval of the Agreement.
Siakel moved, Zerby seconded, Adopting RESOLUTION NO. 14 -0759 "A Resolution Authorizing
the Mayor and City Administrator to Enter Into the Joint and Cooperative Agreement II with the
Lake Minnetonka Communications Commission." Motion passed 310.
B. Adoption of the Preliminary 2015 General Fund Operating Budget and Tax Levy
This was continued to Council's September 8, 2014, meeting agenda at Administrator Joynes's request.
C. Selection of the Truth -in- Taxation Hearing Date
This was continued to Council's September 8, 2014, meeting agenda at Administrator Joynes's request.
C. New Liquor License Request from MGM Liquors Location 5660 County Road 19
This item was removed from the Consent Agenda at Administrator Joynes's request.
Administrator Joynes stated the City has received an off -sale liquor license application from Wine &
Spirits by JD, Inc. dba MGM Wine & Spirits for a 5660 County Road MGM franchise location. That
franchise is currently located in the City of Tonka Bay. The application is nothing out of the ordinary.
:But, the City wanted to make sure that if it were to become involved with the redevelopment of that
northwest quadrant of the Smithtown Road and County Road 19 intersection it wanted to have the first
option to purchase the 5660 property. The license will not be signed until the Option to Purchase
Agreement with Real Estate Holdings by JD, LLC, has been successfully executed by the Shorewood
Economic Development Authority.
CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES
August 25, 201.4
Page 7 of 9
Councilmember Hotvet stated that if the City wanted to purchase the property a few years from now she
asked what type of notice has to be given. Attorney Keane stated it is his recollection that the Agreement
provides for a one -year notice to Real Estate Holdings by JD, LLC to relocate and complete the exercise
of the Option to Purchase Agreement. He noted that is commercially reasonable for that type of deal.
Siakel moved, Hotvet seconded, Adopting RESOLUTION NO. 14 -070, "A Resolution Approving an
Off -Sale Intoxicating Liquor License for Wine & Spirits by JD, Inc. dba MGM Wine and Spirits"
contingent upon receipt of the Certificate of Insurance and upon execution of the Option to
Purchase Agreement with Real Estate Holdings by JD, LLC, by the Shorewood Economic
Development Authority. Motion passed 310.
11. OLD BUSINESS
12. STAFF AND COUNCIL REPORTS
A. Administrator and Staff
A. Administrator and Staff
L Monthly Budget Report
Mayor Zerby noted that Council had not been provided with a copy of the July 2014 monthly budget
report.
2. Trail Schedule
.Mayor Zerby noted the meeting packet contains a copy of the revised Trail Schedule. He stated he
assumes the Galpin Lake Road walkway schedule will be revised based on Council's earlier action to
reject the bids for the project.
Engineer Hornby noted that prior to the meeting a revised copy of the Smithtown Road east walkway
schedule was placed at the dais. Hornby stated the survey for that should be completed this week. The
delay is because of the compressed work schedule as earlier discussed. He noted that the presentation to
the Planning Committee will be pushed off until October as a result of the delay. He also noted that the
end dates for construction have not changed. Zerby stated Ile hopes staff will contact Minnewashta
Elementary School representatives to schedule the open house for the project for October 30, 2014, if they
have not already done so. Hornby noted that he will. look into hying this project and the Galpin Lake
Road walkway project together.
Other
Director Brown stated Metropolitan Council Environmental Services (MCES) has installed all of the
watermain in Shorewood for its forcemain project and CenterPoint Energy has relocated its natural gas
main. The contractor is starting on the retaining wall but there is a utility conflict that the contractor is
trying to work out with MCES. A schedule date to make the permanent fix to the City watermain that was
damaged by the MCES contractor has not been determined. A temporary overland, hydrant -to- hydrant
watermain will be used to provide water service to that area. He then stated that for the Valleywood Lane
improvement project the pavement is down and. the contractor is working on restoration.
CI'T'Y OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES
August 25, 2014
Page 8 of 9
Mayor Zerby asked why there is a bag over a hydrant near Smithtown Road just west of Marsh Point,
Director Brown stated someone from Public Works must be doing maintenance on that hydrant.
Zerby then asked when the striping of roadways will be done. Brown noted that roadways are patched
first, then sealcoated and finally striped. Zerby stated. he would like staff to find a way to stripe roadways
sooner in the year. From his vantage point, drivers are not getting most use of that new paint because it
gets scrapped off during the winter. Brown stated that most of the striping is used during the winter
months and it is not uncommon for many communities to stripe roadways late in the fall.
Engineer Hornby stated the pavement marking project is out for quotes. He then stated the City of
M.innetrista is seeking quotes to remove the rock on the single lane roadway out on Enchanted Island.
Mayor Zerby asked if there has been any discussion about meeting with representatives from the
Minnehaha Creek Watershed District (MCWD) about a permanent solution for that roadway. Hornby
stated the plan to get that section of roadway in Shorewood ready for winter is to remove the rock,
evaluate the condition of the roadway and either patch it or overlay it depending on the condition. A two -
city cooperative permanent floodplain fix will be discussed. Director Brown stated staff met with the
MCWD on a different issue and that topic came up during the discussion.
Director Brown stated that Hennepin County has been declared a disaster area as part of the Presidential
Declaration for Disaster. An accounting of costs the City has incurred to date will be submitted to the
Federal Emergency Management Agency (.FEM.A) for partial reimbursement consideration. There needs
to be discussion about possibly including costs for raising that roadway on the Island. If a permanent
solution is put in then FEMA may cover 50 percent of the cost of doing that. Engineer Hornby noted that
part of the reason Minnetrista still has the rock down is it was waiting for that declaration.
Director Nielsen explained the Christmas Lake boat access was closed due to finding zebra mussels at the
access. Rapid response action is being taken and. it entails dredging, removing the old ramp, pulling the
rock, treating the area and so forth. People are waiting to find out how long the access will be closed.
Staff continues to meet with representatives from the MCWD and the Minnesota Department of Natural
Resources (DNR). Both agencies have been very cooperative,
Mayor Zerby expressed his appreciation for staff contacting the agencies and everyone for getting things
moving very quickly. He stated the effort will bring positive results.
Administrator Joynes explained it is the first time the rapid response approach has been tried. There are
people who do not think the approach is not the right way to go about trying to address the zebra mussel
issue. The City has already started to get some push back from people. All of those who have participated
in meetings about addressing the issue agreed it is worth trying. He does not think the cost is going to be
much in excess of what was budgeted for that activity. The City has offered to host a meeting for the
Christmas Lake Homeowners Association (CLHOA) if people want. Staff has met with the President of
the Association. It is believed that the chemical that will be used to treat the area can be effective. He
noted that the DNR has been very responsive.
B. Mayor and City Council
Mayor Zerby noted that he attended a joint work session of the Excelsior Fire District (EFD) member
City Councils and the EFD Board and EFD Operating Committee. Deephaven Mayor Skrede and Tonka
Bay Mayor De La Vega also attended the meeting. There were some good options put forth on financing
options. The Board recommended the member City Councils approve the proposed 2015 EFD Operating
Budget and 2015 -- 2035 Capital Improvement Program be approved as presented.
CTI'Y OF SHOREWOOD REGULAR COUNCIL MEE'T'ING MINU"T"ES
August 25, 20.14
Page 9 of 9
Zerby stated he and some of the staff had met with representatives from the Three Rivers Park District
(TRPD) about the proposed LRT overpass project at County Road 19. The overpass is at risk because of
the high construction bids the TRPD received. He and staff encouraged the TRPD to use the funding for
that project for on- ramping around the area. Councilmember Siakel asked if there is any chance the TRPD
would rebid the project next spring. Siakel stated she thought the overpass is greatly needed and that she
hoped the project is not abandoned. Zerby related that TRPD Board Chair Gunyou had stated that he
thought the TRPD would reassess the design of the overpass because it would be very costly to build.
13. ADJOURN
Hotvet moved, Siakel seconded, Adjourning the City Council Regular Meeting of August 25, 2014,
at 7:56 P.M. Motion passed 310.
RESPECTFULLY SUBMITTED,
Christine Freeman, Recorder
ATTEST:
Sc Zerby, a or
Jean Panchyshyn, Cify Cl &k