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09-14-15 CC Reg Mtg MinCITY OF SHOREWOOD t jjLmu COUNCIL 01 P.M. Mayor Zerby called the meeting to order at 7:00 P.M. A. Roll Call Present. Mayor Zerby; Councilmembers Labadie, Sundberg, and Woodruff; Attorney Keane; City Administrator Joynes; City Clerk Panchyshyn; Finance Director DeJong; Planning Director Nielsen; Director of Public Works Brown; and, City Engineer Hornby Absent: Councilmember Siakel B. Review Agenda Sundberg moved, Labadie seconded, approving the agenda as presented. Motion passed 4/0. A. City Council Work Session Minutes, August 24, 2015 Woodruff moved, Sundberg seconded, Approving the City Council Work Session Minutes of August 24, 2015, as presented. Motion passed 4/0. B. City Council Regular Meeting Minutes, August 24, 2015 Woodruff moved, Labadie seconded, Approving the City Council Regular Meeting Minutes of August 24, 2015, as presented. Motion passed 4/0. Mayor Zerby reviewed the items on the Consent Agenda. Sundberg moved, Woodruff seconded, Approving the Motions Contained on the Consent Agenda. A. Approval of the Verified Claims List B. Approval of the Mound Fire Department 2016 Budget Councilmember Woodruff stated the City contracts with the City of Mound for providing fire services to Enchanted and Shady Islands. He thought the Mound Fire Department does a great job for the City. The cost for those services has remained relatively flat for a number of years. Mayor Zerby noted there is a small increase for 2016. Motion passed 4/0. CITY OF SHOREWOOID REGULAR COUNCIL MEETING MINUTES September 14, 2015 Page 2 of 19 .4 1i' There were no matters from the floor presented this evening. Discussion moved to Item 8.A on the agenda. A. Comprehensive Plan Amendment and Concept Stage Approval of a Planned Unit Development Applicant: Mattamy Homes Location: 24575 Smithtown Road — Former Minnetonka Country Club Property This item was discussed after Item 9.A on the agenda. Mayor Zerby opened the Public Hearing at 7:10 P.M., noting the procedures used in a Public Hearing. He stated during this Public Hearing Council is going to consider a. Shorewood Comprehensive (Comp) Plan amendment and a Concept Stage approval for the planned unit development (PUD) of the former Minnetonka Country Club (MCC) property. He asked that those people in the audience who want to speak on this item during the Public Testimony portion of this Public Hearing please sign up on the clip boards being routed. Those people will be called to speak in the order they signed up. He also asked those people to limit their comments to no more than three minutes in order to be respectful of other people's time and to keep their comments as brief and as concise as possible. Director Nielsen explained Mattamy Homes has purchased the former MCC property, located at 24575 Smithtown Road. The property is 118.64 acres in size. The applicant proposes to redevelop the property with 140 single- family residential lots. The property is currently zoned R -lA, Single - Family Residential. The Comp Plan Land Use Map recognizes that land as "Semi- Public" use. The applicant has proposed an amendment to the Comp Plan changing the current land use from "Semi- Public" to "Low Density Residential (1 — 2 units per acre) ". He noted that he will keep his comments somewhat brief. He explained the developer submitted a pre - application in January 2015 for a Comp Plan amendment. At that time Council hired a planning consultant to help the City take a broader look at the former MCC property and the property around it. Council established a Planning Advisory Committee (PAC) and asked the consultant to guide the PAC in its discussions about the pre - application and the surrounding area. The PAC met a number of times and provided Council with its findings and recommendations. The Planning Commissioners were part of the PAC. The Commission held an open house on this matter. The Commission also held a Public Hearing on this matter as well; the Hearing was continued to a second meeting. The Commission voted 3/2 to recommend approval of the proposed Comp Plan amendment and rezoning and concept plans. The developer originally proposed developing 121 single - family residential lots. Per the PAC's suggestion the developer modified its plan to have 140 single- family residential lots with 40 of them being for age - targeted housing. The age - targeted lots would be smaller, the main living area would be on one level and it is likely they would be lived in by empty nesters. As proposed the development would result in there being 1.22 units per acres; it would be on the low end of the 1 — 2 units per acre. The proposed zoning for the project is PUD. The development agreement that results from the PUD establishes the standards for the site and basically becomes the zoning code for the property. There are three stages in the PUD process — the Concept Stage, the Development Stage and the Final Plan Stage. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES September 14, 2015 Page 3 of 19 The PAC and Planning Commission discussed a number of issues. The issues can be grouped into four categories — natural resources, land use, transportation and community facilities. Natural Resources There are contaminated soils on the property. They are primarily found where the greens had been and to some extent where the tees had been. The developer would remove those soils from the site and dispose of them appropriately. The developer would like to start removing those soils before winter. The Zoning Code recognizes there will be some tree loss as a result of development and home construction. Attempts are made to try and limit the amount of tree loss. When trees cannot be saved the City's Tree Preservation and Reforestation Policy contains a formula for replacing trees. The developer has submitted a tree inventory of trees located within 200 feet of the center lines of the proposed roadways. The developer has to propose a tree preservation and reforestation plan during the Development Stage process. During the Development Stage the details of the project are worked out. Many of the existing trees on the former MCC site are not natural to the site; they were planted by the owners of the property over the last 100 years. There are dead or dying trees on the site; they do not have to be replaced. He displayed and highlighted the following graphics / plans: the current Land Use Map; the existing zoning for the former MCC property and surrounding areas; site conditions — soils, wetlands and drainage; site conditions — tree massings; an aerial view of the site; and, the proposed concept plan. Land Use There was PAC consensus that additional variety in housing was desired. The developer responded by replacing 21 standard housing units with 40 age - targeted units. The age - targeted lots would be located on the northeast corner and northwest corner of the development. Staff has recommended having R -1C building setbacks (i.e., front — 35 feet; rear — 40 feet; side — 10 feet; and side - abutting street — 35 feet). The applicant was asked how the size of the houses being proposed would fit on the lots. He was also asked about the possibility of fixture accessory uses such as decks, patios and swimming pools. The applicant provided illustrative sketches demonstrating that. With regard to the benefits to the community, the proposed development would create over $100 million in new tax base for the City. New tax base has never driven much in Shorewood. The Park Commission decided it did not want any additional park land on the site. It preferred the City get park dedication fees ($6,500 per lot) to fund improvements to City parks. The Commission also wanted the open space on the site to be available to the public. Transportation City Council and the PAC are aware that there are traffic issues related to the Country Club Road I Yellowstone Trail / Lake Linden Drive collector route. Council has decided to form a Traffic Committee to discuss the issues with the route and to identify possible ways to improve that route. That is separate from the proposed redevelopment project. As part of the subdivision the developer will have to give the City additional right -of -way (ROW) along a portion of Smithtown Road and along Country Club Road in order to bring the ROW up to 66 feet wide (the City's standard for those types of roadways). The ,ROW on Country Club Road ranges from 33 feet wide to 66 feet wide. At the northeast corner of the site the Smithtown Road ROW is not 66 feet wide. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES September 14, 2015 Page 4 of 19 Independent of this project, the Smithtown Road Sidewalk will be extended to the east roughly up to the intersection of Smithtown Road and County Road 19. The ROW necessary for that will be dedicated in as part of the project. The City's Trail Implementation Plan calls for a trail segment along Country Club Road. The developer has agreed to put that trail segment in. It will not be the same as the Smithtown Road Sidewalk. It would likely be an 8- foot -wide bituminous trail_ It would extend down to the end of the developer's property. Within the development area there would be an internal trail system; it is recommended it be available to the public. The system would connect back to the Smithtown. Road Sidewalk and Country Club Road trail segment. The internal trail system will have a different feel to it and it will go through a somewhat natural area. The Zoning Code limits the length of a cul -de -sac to 700 feet. The proposed cul -de -sac on the west side of the site would be far in excess of that. The developer has been told that there needs to be a second access to Smithtown Road from the development; it would be on the west side of the site. The intent is to have more of the traffic from that site use Country Road 19 to get to Highway 7. The developer may have to alter the wetland on the northwest corner. If so, the developer will have to put in two square feet of wetland somewhere else for every square foot it removes. That has to be worked out with the Minnehaha Creek Watershed District (MCWD). That should be addressed in the preliminary plat that will be submitted as part of the Development Stage plans. It has been suggested that there be a four -way stop where a new roadway comes out on to Yellowstone Trail. Communitv Facilities The City does have adequate public utilities (municipal water and sanitary sewer) to serve this project. There is a Metropolitan Council Environmental Services sewer line that comes in across the southeast corner of the site and the developer has to take that into consideration as part of the design. It will likely have to be relocated. During its August 11, 2015, meeting the Park Commission recommended no additional park land should be required within the project. The PAC discussed possibly relocating some elements from Badger Park to the new development. The PAC and the Commission both recommended against doing that. The developer would instead pay park dedication fees. There had been concern expressed about the developer's ability to move forward with the project in its entirety. The developer has purchased the former MCC site and the lawsuit among the family members has been settled. The City does require letters of credit that guarantees whatever work is proposed to get done gets done according to the approved plans and specs. Nielsen noted that he has nothing more to add at this time. Rick Packer, representing Mattamy Homes, stated he had nothing to add to Director Nielsen's explanation and noted that he will waive his time to speak. Mayor Zerby noted that Council will not take action on this tonight because the notice for this Public Hearing indicated the Hearing would be held on Tuesday, September 14. The Public Hearing will be continued to Council's September 28 meeting. A member from the audience asked if Council would take public comment during that meeting as well. Mayor Zerby noted Council would. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES September 14, 2015 Page 5 of 19 Mayor Zerby opened the Public Testimony portion of the Public Hearing at 7:35 P.M. David Cooley, 24725 Smithtown Road, questioned the reasoning behind moving forward with the Smithtown Road Sidewalk East Extension Project at this time. He stated there are traffic issues on Smithtown Road that need to be addressed and if that segment of the sidewalk is constructed improvements to the roadway may not be made. The City would. be saddled with the roadway issues for a long time to come. He then stated that after the City has acquired additional ROW on the east end of Smithtown Road and along most of Country Club Road he suggested extended right -turn and left -turn lanes be constructed near the intersection of Smithtown Road and Country Club Road. It would improve the traffic flow today and it would be even more important once the former MCC property has been redeveloped. He went on to state that by placing one access point on the MCC property directly across from one of his neighbor's property one could argue it would reduce the value of his property. He asked why the entrance could not stay in front of the City -owned lot. Erik Lemke, 5535 Wedgewood. Drive, stated he hopes the open space on the site remains open. He thought the trail system would benefit residents. He then stated there is a historic railbed that runs through the site; the St. Paul. Minneapolis Manitoba Line. He asked if that could be incorporated into the trail system. He noted that 90 — 95 percent of that grade is still visible. He stated because of the development the City would have quite a bit more tax revenue coming in. He suggested putting that tax revenue into a fund to help pay for future infrastructure development (only roads and utilities). He then stated the City of Otsego was considered the third most efficiently run city in Minnesota. It successfully developed a fund like that. Otsego had to increase taxes a little to do that. Shorewood has the opportunity to create such a fund and use it to pay off debt service for loans. He went on to state a large circle at County Road 19 would be fantastic. Ken Dallman, 5780 Eureka Road; noted he has lived at his address for 38 years. He stated he thought Mattamy Homes submitted an excellent plan; a plan he likes. He then stated that traffic has increased on Eureka Road over the years. He expressed hope that a traffic light could be installed at the intersection of Eureka Road and Highway 7. He then stated the stormwater runoff creates a river flowing across Eureka Road and over his yard. It appears that will be mitigated with the proposed redevelopment. He noted he thought the plan would be good for the City. George Greenfield, 24715 Yellowstone Trail, stated he thought there are three categories Council should consider and then reject the proposal the Planning Commission recommended Council approve. The categories are water quality, aesthetics and the social consequences of the project. With regard to water quality, Mr. Greenfield stated he does not think the developer submitted a written plan for the removal of the polluted soils prior to its presentation of its plan to the Planning Commission. He thought that was careless or arrogant or maybe both. He thought it is being treated as a relatively minor matter. When he spoke with the Mayor a couple of months ago he learned that mercury had been put on the greens for decades. It is just not a matter of the greens and tee boxes; the entire fairway system had also been treated with chemicals for decades. He thought decontaminating the site could be as complicated as decontaminating the former army ammunitions site in New Brighton. There are at least 40 wells that are adjacent to the former MCC property. Residents do not want their well water to become polluted if the contaminated soils are not removed appropriately. With regard. to aesthetics, Mr. Greenfield stated the Woodland. Cove project site has been under way for at least three years. At this time the site is a collection of weed- strewn desolate lots. He does not think Shorewood residents want to look at something similar on the MCC property for an extended period of time. CITY OF SHOREWOOD REGULAR COUNCIL MEE'T'ING MINUTES September 14, 2015 Page 6 of 19 With regard. to social consequences, Mr. Greenfield stated he contacted three major construction unions and learned that Mattamy Homes does not have a signatory agreement with any of the three. From that he infers that Mattamy is looking for subcontractors that pay the lowest possible wages. Therefore, if Council approves the project it would aggravate one of the great problems of our country which is the disparity of wages that has been going on for at least 35 years. Another social consequence of the project is affordable housing which got at most perfunctory attention. That has been the case since he has lived in Shorewood. He explained the difference in profit for the developer between building ten $450,000 homes and ten $250,000 homes would be about a $300,000. That $300,000 calculates to 1.6 percent of the total profit for the project. He has been told that a developer of a project like the one proposed aims for 10 — 20 percent profit per unit. He used 15 percent in his calculations. He noted that he does not think there is any reason there could not be ten $250,000 units built as part of the project. He stated it would be nice if teachers could afford to buy houses in the school district or if City employees could afford to live in the City. Mr. Greenfield asked Council to reject the application for the three reasons he just explained. Henry Miles, 24035 Mary Lake Trail, routed a copy of his prepared comments to the members of the Council and staff. He asked that his remarks be submitted verbatim into the record. "Mayor Zerhy, City Council Members, thank you for the opportunity to address you tonight and thank you for your service to our community. My name is Henry Miles. My wife Vicky and I finished raising our kids in Shorewood having resided for 17 years at 24035 Mary Lake Trail. My comments stand that I submitted into the record at the Planning Commission hearing on August 4"' a copy of which was included in your packet tonight. I would like to support Mattamy's development subject to the conditions represented in those remarks. However, I am not there yet. I hesitate because, while words are welcome, we have not yet seen important suggestions reflected in the concept renderings. Most importantly for me, we have not seen whether the 66- .foot right -of -way along Country Club Road could even accommodate a vision fora wavy divided parkway relative to the trail that Mattamy promises to its west and relative to the increased number of lots that Mattamy seeks. This means we don't know whether or not Mattamy would have to shorten the cul -de -sacs projecting toward Country Club Road and eliminate a few lots to meet a vision for Southlake traffic. This is important because, as I noted in my remarks to the Planning Commission, the problems along the cut - through are serious and have already been acknowledged by the City. At the very least, we must know whether the City will have the maneuvering room it needs going ,forward. We don't know this based on what has been presented. Nor have we seen good suggestions raised by others reflected in the plan. Now, when I have raised this issue about a more complete concept design, I have been told, `Well, Henry, you've got to understand it takes time to prepare such renderings.' Well, there's been plenty of time and, as most of us well know, anyone with a CAD program could do this in a few hours. Instead, we are left to trust in words and to view the likes of crude red penciled sketches that have been out therefor weeks. This is insufficient. We need to see a concept plan that brings together the wishes and ideas of both Mattamy and Shorewood near to where the properties come together and, if we do not, then the concept plan .for the development per se should be presumed to be incomplete. We've also been told including, in effect, in the materials for tonight's meeting `Oh, don't worry, these issues will be addressed by the Traffic Committee.' The idea of a Traffic Committee may be okay although I had understood that the Planning Advisory Committee was to have addressed CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES September 14, 2015 Page 7 of 19 such issues. Residents, including I, question why the City would enable consultants to put up traffic data favorable to the developer while ignoring or minimizing other information only to pass the buck to yet a new committee. I hope the City appreciates that these twists in the process raise doubts and suspicions. Today, at this point on the critical path, before the concept plan is approved, it is essential that our elected representatives are thorough, careful and explicit as to what we require of Mattamy in the context of the immediate environs in order to protect Shorewood's options for addressing problems that exist today with possible solutions that lie ahead. We must know this going -in lest we further prejudice out community coming -out. The concept plan in its present state does not meet this test. I ask that my comments, which I have given to the Mayor, City Council and staff, be submitted verbatim into the record. If members of the audience are interested, I will also provide them copies of these remarks after the meeting. I also have a few copies of my remarks to the Planning Commission for anyone who may want them. Thank you. Henry Miles 24035 Mary Lake Trail Shorewood, MN 55331 " Dana Hirsch 24590 Smithtown Road, stated she has lived in her home for about 30 years. Her property faces the former MCC property and it abuts the residential property the City purchased. Her neighbors that live next to that property are putting on a large addition to their home as she and her family did about 20 years ago. Her neighbors just had a baby last week. One proposed access to / from the MCC property will be directly across from that family's home. Vehicle lights will shine into their home all hours of the day and night. She thought that would be crazy and unacceptable. She then stated that usually huge developments are hooked up to an intersection. There are intersections along Smithtown Road; for example, one at Fairway Drive. There are three along Country Club Road and one on Yellowstone Trail. She asked why one of the intersections along Country Club Road is not being considered. She asked why there cannot be an access point of each of the three roadways. She noted that traffic on Smithtown Road is backed up day and night. Trucks trying to get into the gas station have difficulty doing so. She stated traffic gets backed up way beyond her property on any given night when there are sporting events going on in the area. Traffic has increased significantly since the Smithtown Road and County Road 19 intersection was rebuilt. She expressed concern about water quality. Her home is served by a private well.. They have no intention of getting rid of their well. She is very concerned about the chemicals that were used on the former golf course. She noted she wants reassurance that the residents are being heard. She noted they raised their children in Shorewood and that she has never been late on paying her property taxes. She noted she and other residents want to be considered in this process. She stated she does not think Mattamy Homes is considering Shorewood residents who live on properties facing the former MCC property. Residents will be losing privacy and the darkness that some of them residents like. She then stated it is likely that residents living in that redevelopment will be two -car families. Families will have visitors who drive over to visit them. The children will have teenage friends that drive over to see them. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES September 14, 2015 Page 8 of 19 Ms. Hirsch asked Council to consider the impact of the proposed redevelopment on residents around the area. She expressed concern that the redeveloped site will. become private and that residents will not be able to enjoy the open space. She stated the proposal seems highly suspect and that she does not think residents are being heard. David Weider, 23820 Yellowstone Trail, stated in his job whenever he tries to push a project forward he goes before a committee that asks him tough questions about the plan, the risks and the return on investment. The committee he goes before does not have tolerance for treating some component separate. Before the City moves forward with this project it needs to have answers to the tough questions. He then stated that Highway 41 and Highway 7 intersection is a problem. He does not think it is fair to treat that issue separately. He thought mitigating that issue needs to be considered as part of the project. The cost of making improvements needs to be weighed against the additional revenues the City will get from the development. He noted that the other day when he was stopped at the intersection the traffic was backed up to the stone pillars on Lake Linden Drive. He thought that was nothing compared to what will happen after the redevelopment is done. He went on to state that before the plan gets approved he asked Council and staff to know that all of the risks and costs were well considered and well planned. He clarified he is not going to ask that it be rejected even though it would be his personal preference. He stated there needs to be a solution for the Highway 7 and Highway 41 issue before the project moves forward. Impervious surface and drainage also needs to be thoroughly vetted. He thought residents would likely be assessed for improvements to schools because of this development; that is another cost associated with the project. Mr. Weider noted that he would like to get more information from Council and staff about the things he just discussed. Chris Oehrke 24650 Smithtown Road, stated he has lived in Shorewood for about three years. His property is across from a proposed access point on the proposed development. He noted that before the MCC property was sold he decided to put a large addition on to his home. Because vehicle lights will shine into his home at the access point on Smithtown Road he needs to reconsider his options. He asked why the access cannot be located somewhere else; such as where the access point to the property currently is. He asked that his voice be heard. He noted he opposes the proposed access point being across from his house. William O'Neill, 6145 Club Valley Road, noted he has been a Shorewood resident for 37 years. He stated he walks up and down Yellowstone Trail almost daily. He thought that putting in an intersection on the roadway in front of his property would be totally nuts. He thought there needs to be a traffic study done before anything else gets done. He then stated he had belonged to the MCC for years. There is a dip in the terrain where the entrance had been. He noted residents have been through several 100 -year rain events in his neighborhood. Water had seeped into his basement to prove it. He thought it would be a nightmare to construct residential units on the site. He then stated his main concern is the traffic. When he first moved to his home Wood Drive was open to Highway 7. At that time there was a lot of traffic going through there to get to the MCC. Hennepin County or the State decided to close that exit off. He explained that for him to get out of his neighborhood he has to travel on Yellowstone Trail to Lake Linden Drive to Highway 7. He questioned if he would be able to get out of his neighborhood after the development is complete. Mr. Weider asked Council to seriously consider traffic before approving moving forward with the proposed project. CITE' OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES September 14, 2015 Page 9 of 19 David Cooley, 24725 Smithtown Road, asked if the City has any studies related to the impact of the hard surfaces that will be built on the former MCC property compared to all of the natural ability the MCC had to absorb stormwater. He has not heard anyone talk about that. He stated every property owner around the MCC site should be informed about that. There will be a lot of roofs, swimming pools, trails, roadways and so forth constructed. Mayor Zerby continued the Public Testimony portion of the Public Hearing at 8:10 P.M. to Council's September 28 meeting. Mayor Zerby noted that landowners have the constitutional right to develop their land. He explained that per the Shorewood Comp Plan the former MCC property is intended to be redeveloped as residential. Under the as -of -right development process the land owner would not have to apply for a variance He asked how many lots the developer could develop under the as-of-right process. Director Nielsen responded it would be 118 or 119 units based on one unit per acre. Zerby explained the developer has elected to develop the land under a PUD which gives the developer some tools to maximize the use of the land and it gives the City more control over how the land gets redeveloped. The City prefers to use the PUD process for this redevelopment. Zerby clarified the proposed redevelopment project is not for certain. He is confident there would be houses built on the site sometime in the future. He noted traffic along the collector route needs to be addressed independent of this project being done. Zerby asked Nielsen to comment on discussions with Minnetonka School District representatives relative to the proposed project. Nielsen explained that early on District representatives indicated the project would have little or no impact on the schools. He thought part of the reason for that is there is capacity in the school system that accommodates open enrollment. The project will be developed over four to five years; therefore, the impact will be phased in. If capacity begins to be an issue the District would reduce availability for open enrollment. Zerby stated it is his understanding there is no street light plan for the site at this time. Nielsen stated nothing has been proposed. Nielsen explained the City has street light standards. The City does not put up street lights for security purposes; they are put up for safety purposes only. Zerby stated that stormwater management oversight would be provided by both the City and the MCWD. Director Nielsen noted that drainage ( stormwater management) was identified as one of the top two issues for the project. He explained the development would have to handle its own drainage and hopefully alleviate some of the drainage issues surrounding the site. There is an old drainage pipe that goes south out of the property. That pipe is quite deteriorated on its north end. The developer has been working with the MCWD about the possibility of using that pipe again. The pipe has a positive outlet. That will be addressed as part of the Development Stage plans. Councilmember Woodruff asked Engineer Hornby to comment about how much review has been done about drainage. He stated he thought more has been done than residents think has been done. Hornby explained that for the Concept Stage the developer is not required to submit specific calculations. Honiby noted the City Ordinance is more restrictive than the MCWD's rules. Woodruff stated it is his understanding that any rain that falls on the site has to be managed on the site. Homby clarified the post development runoff has to be equal to or less than the predevelopment runoff. Woodruff noted that current regulations regarding stormwater management are much more stringent than CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES September 14, 2015 Page 10 of 19 they were 5 years ago. Homby stated there are changes to those regulations almost every year and concurred they are more stringent. Councilmember Sundberg stated she thought it important that state of the art practices and technologies be used to remove the contaminated soils from the site. Director Nielsen explained the developer intends to scrape off and remove contaminated soils and then retest to determine if the next layer is contaminated. That process would be repeated until the soils no longer contain contaminants. Sundberg asked if the Minnesota Pollution Control Agency (PCA) would be involved. Mr. Packer explained the soil testing has been very thorough; it has been what will be required by the PCA. Mattamy's consultants know what is normally required by the PCA and that work has been performed. Mattamy submitted its remediation plan and the PCA is reviewing that. Mattamy has done all of the testing it thought was necessary. The major contaminant found was mercury; it was found in the greens. Mercury came from a fungicide that prevents winter mold. That was discontinued in 1994. It does not move through the soil so it is still there. borings taken indicate it has not gone farther into the soils than 6 — 12 inches. Mattamy intends to have six inches removed from all of the greens. The soils will be removed, placed in a truck and then taken off site for proper disposal. Once the first six inches have been removed the soils will be retested. If there are still contaminated soils they will be scraped off and. taken away for disposal. Other contaminants (e.g., chromium and oils) were found around. the maintenance building. All contaminants will be cleaned up. That work will be supervised by Mattamy representatives and PCA representatives. The PCA will assist financially in the cleanup because it is not a voluntary cleanup. Mattamy pays for cleanup of the greens. He noted things will be better off once the contaminated soils are removed. In response to a comment from the audience, Mr. Packer explained the soil samples are taken to a testing lab. Certified people do the testing. Councilmember Sundberg stated it increases her comfort level to know the PCA is already involved and will continue to be throughout the entire cleanup process. She then stated having the contaminated soils removed leaves the entire community much better off. Sundberg then stated. she thought the concerns raised about moving forward with the Smithtown Road Sidewalk East Extension Project were valid. If the Traffic Committee and / or Development Stage plans identify a need to reconfigure that sidewalk, she asked if the sidewalk would have to be ripped out. Engineer Homby noted Council has been planning the Project for a couple of years. He stated PAC discussions indicated that the traffic volume to /from the former MCC property would not be significantly higher than the traffic to /from a fully functioning golf course and activity center. Homby noted that no turn lanes have been proposed at the entrance to the site. If turn lanes are desired staff can modify plans with the developer and the City will have to acquire more ROW. Sundberg asked if the construction of the trail will be done in 2016. Homby responded the contractor has not submitted a staging plan; it should be submitted this week. Homby stated if he were the contractor he would likely install the storm sewer in 2015 and install curb and gutter in 2016. Sundberg suggested the City leave itself some options. Sundberg stated she empathizes with some residents who live along Smithtown Road who have concerns about headlights shining into their homes. She encouraged the developer to take a hard look at how to deal with that. She also encouraged staff and Council to take a hard look at left and right turn lanes. She noted she does not agree that the increase in traffic would be minimal as a result of the proposed development when compared to a fully functioning country club and golf course. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES September 14, 2015 Page 11 of 14 Sundberg then stated there are a lot of issues to resolve and there are solutions that need to be identified. She noted there is a lot of good work being done. Councilmember Labadie stated she agreed that she finds it difficult to believe that the increase in traffic would be minimal as a result of the proposed development when compared to a fully functioning country club and golf course. She then stated that she thought the roadways around the former MCC property are inadequate; they have been inadequate for years. That is not Mattamy's issue. The City needs to address that. Labadie asked when the second access point out to Smithtown. Road would be constructed. Mr. Packer responded during the third phase of construction. Mr. Packer explained the first phase of construction would be done on the northeast corner and central part of the site. The first access point to Smithtown Road would be constructed in phase 1. The second phase would go south and the access to Yellowstone Trail would be constructed. The third phase involves the west side of the site and the construction of the second access to Smithtown Road. Labadie asked if people will have to wait until phase 3 to find out where the location of the second access point on to Smithtown Road would be. Mr. Packer noted that would be determined with the preliminary plat which would be submitted as part of Development Stage plans. Councilmember Woodruff stated he would like a marked up copy of the Comp Plan amendment for the September 28 Council meeting. Director Nielsen noted that the only thing that will change is the Land Use Map. Woodruff stated he wants Council to get a copy of the proposed amended Map. Mayor Zerby stated the PAC asked for more diversity in housing. The PAC also asked to combine the wetlands. He asked Director Nielsen to comment on the wetlands. Nielsen explained that Mattamy found out that there had been a large wetland in the low area on the site. The wetland does not exist anymore. That area had been part of the golf course for over 100 years. The PAC had recommended that wetland be restored. Staff has been looking into the possibility of wetland bank credits. The cost of doing that versus the credit the City would get for doing that would be about $5 worth of cost for $2 worth of credit. Nielsen stated those wetlands designated as such on the site will be maintained. There would need to be some wetland mitigation so some wetlands may be enlarged. He noted there would be storm drainage ponds on the site as well. Zerby stated when Radisson Road was closed a breakaway system was installed so a fire truck could drive over and break the posts. He asked if something similar could be done on the development site. Nielsen stated that could be looked into but staff does not favor doing that. Staff prefers that the traffic be coaxed on to Smithtown Road. That breakaway system could be used for emergency access. It would not address the issue of the cul -de -sac being too long. Director Brown stated it is his understanding that insurance companies would not allow that type of access. They prefer that firefighting vehicles do not drive over the barriers. Woodruff moved, Sundberg seconded, continuing the Public Nearing for a Comprehensive Flan amendment and Concept Stage plans approval for Mattamy Homes' planned unit development of the former Minnetonka Country Club property located at 24575 Smithtown Road to Council's September 28 meeting. Councilmember Labadie asked if Council would take public testimony on September 28. Mayor Zerby noted Council would. Mayor Zerby stated residents can contact staff or Council to voice their opinions if they would like. He encouraged them to do so. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES September 14, 2015 . Page 12 of 19 Councilmember Labadie noted that numerous residents have submitted written comments to the City and those comments had been distributed to Council for review. She stated everything is taken into consideration; residents' voices are being heard. Motion passed 4/0. Mayor Zerby continued the Public Hearing at 8:32 P.M. Discussion moved to Item 9.13 on the agenda. 7. PARKS 8. PLANNING A. Report by Planning Commission Chair Geng on the September 1, 2015, Planning Commission meeting. This was discussed after Item 4 on the agenda. Chair Geng reported on matters considered and actions taken at the September 1, 2015, Plamling Commission meeting (as detailed in the minutes of that meeting). ENGINEERING /PUBLIC WORKS A. Petition for Local Improvement — Connections to City Water System Engineer Hornby explained the City received five requests for connection to the City water system. They were for properties located at: 5875 Division Street (existing house); 5895 / 5897 Division Street (existing duplex); 6025 Eureka Road (new house on vacant parcel); and, 19795 Excelsior Boulevard (existing house). It is unlikely the request for Excelsior Boulevard would be done this year because there are issues at that site. Staff is in the process of preparing a request for quotes (RFQ) for contractor services to extend those water services. If any of the requests are withdrawn they will be pulled off the RFQ. He noted the meeting packet contains a copy of a resolution that if adopted would accept the petition and authorize the residential connection to each of the properties. Woodruff moved, Labadie seconded, Adopting RESOLUTION NO. 15 -065, "A Resolution Accepting Petition and Authorizing Residential Connection to the City Water Distribution System." Motion passed 4/0. Discussion returned to Item 5.A on the agenda. B. Accept Quotes and Award Contract for the 2015 Pavement Marking Project This was discussed after Item 5.A on the agenda. Engineer Hornby explained the City sent out five requests for quotes (RFQ) for pavement marking services to five specialty contractors who had familiarity with the City. Four of them have done work for City in the past. The City received two quotes. The lowest responsive quote was received from Sir Lines- CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES September 14, 2015 Page 13 of 19 A -Lot for an amount of $18,043.60. The Engineer's Opinion of Cost was $19,644.00. He noted the meeting packet contains a copy of a resolution accepting the quote and awarding the contract Sundberg moved, Labadie seconded, Adopting RESOLUTION NO. 15 -066, "A Resolution Accepting Quote and Awarding Contract for the 2015 Pavement Marking Project, City Project No. 15 -04, to Sir Lines -A -Lot for an Amount Not To Exceed $18,043.60." Motion passed 4/0. 10. GENERAL/NEW BUSINESS A. Adoption of the Preliminary 2016 General Fund Operating Budget and Tax Levy Director DeJong explained the meeting packet contains a copy of the preliminary 2016 General Fund Operating Budget. It is the outcome of several Council work sessions held during July and August to discuss the Capital Improvement Program (CIP) and. the Budget. The assumptions underlying the preliminary Budget include the following ➢ A 2.5 percent reserve for salary and benefit increases for non -union personnel. The Public Works employees are under contract for 2016; their wage increases are included in the Budget. Their benefit increases are still open and will be determined once benefit increases for non -union personnel are set. ➢ Salary and benefits costs for a new city administrator. The costs include a full benefit load and a salary of $110,000 annually (that is up to negotiation during the hiring process). There will be a corresponding reduction in contractual services assuming Administrator Joynes will not be under contract. for 2016. ➢ There is $50,000 for a compensation study, succession planning and employee training. There are a number of employees who plan on retiring during the next 18 months. ➢ It anticipates the use of up to $40,000 for urban forester / arborist contractual services. A There is a $30,000 increase in funding for the CIP — $15,000 to the Equipment Replacement Fund and $15,000 to the Street Reconstruction Fund. ➢ There is a 3 percent increase included in the property tax levy. Based on recent information he has received from Hennepin County the average increase in the City's share of the property tax will be less than or equal to 3 percent because of the added tax capacity from new construction and. remodeling. Council can decide to decrease the levy increase prior to adopting the Budget in December 2015. The preliminary Budget includes $5,857,087 in expenditures and $5,676,939 in revenues. There is a planned use of $180,148 in General Fund reserves to balance the Budget. General Fund reserves were $3,981,475 at the end of 2014. The planned use of reserves for 2015 is $142,178. There are estimated to be $3,839,297 in reserves at the end of 2415. The City's General Fund Balance Policy stipulates a reserve level of 55 — 60 percent of the next year's operating expenditures. Sixty percent of the year -end balance would be $3,514,252. That leaves $325,045 in available reserves. For 2015 the budget anticipates the use of $180,148 in reserves. That leaves an undesignated balance of $1.44,897 above the 60 percent that could be available for use. The 2016 proposed property tax levy is $5,079,408. The adopted 2015 property tax levy was $4,931,464. The increase between 2015 and the proposed 2016 tax levy is $147,944 (or 3 percent). DeJong noted staff recommends Council adopt the preliminary 2016 General Fund Operating Budget and 2016 tax levy. He stated the preliminary tax levy has to be certified to Hennepin County by September 30, CITY OF SIIOREWOOD REGULAR COUNCIL MEETING MINUTES September 14, 2015 Page 14 of 19 2015. The preliminary property tax statement mailed out to property owners in November will reflect what is being proposed. He noted the tax levy increase can be lowered before the final Budget is adopted in December 2015. Mayor Zerby stated Council and staff have had. a lot of detailed discussion about the preliminary Budget. He noted he hopes the final 2016 tax levy increase will be less than 3 percent. Councilmember Woodruff reiterated what Director DeJong explained. about the ability to lower the preliminary 3 percent levy. He stated the Truth -in- Taxation hearing is scheduled for December 7, 2015. Councilmember Labadie stated she recently attended a meeting with leaders of cities that are members of the Minnetonka School District and well as the Superintendent of Minnetonka Public School Dennis Peterson. During the meeting 2016 levy increases were discussed. The preliminary 3 percent increase being proposed is not out of line. She thought that was good news. She noted that one city was anticipating an increase that was almost double 3 percent. Another city anticipated a zero percent increase. Woodruff moved, Labadie seconded, Adopting RESOLUTION NO. 15 -067, "A Resolution Adopting the Preliminary 2016 General Fund Operating Budget and Tax Levy" as presented. Motion passed 4/0. B. Traffic Committee Volunteers Administrator Joynes stated that originally 14 residents volunteered to serve on a Traffic Committee to discuss design alternatives and traffic calming options for the Country Club Road / Yellowstone Trail / Lake Linden Drive collector route. Mr. Henry Miles has taken his name off of the list. He noted the meeting packet included a copy of the proposal from WSB & Associates for providing facilitation and support services to the Committee. He stated the Committee may eventually discuss other traffic pain points in the City. He then stated this evening staff is asking Council to either establish the Committee or direct staff to solicit for additional volunteers, to accept the proposal from WSB and direct staff to organize the initial meeting. He noted the packet includes a. copy of a map which depicts where the volunteers live. Mayor Zerby stated what has been provided is what Council asked for and noted he was pleased with the number of residents who volunteered. Sundberg moved, Zerby seconded, establishing a Traffic Committee composed of the 13 volunteers, accepting the proposal from WSB & Associates and directing staff to organize the initial meeting. Motion passed 4/0. Councilmember Woodruff stated it is important that the Committee members attend the monthly meetings and not just attend sporadically. C. Alternative Energy Study Council Committee Mayor Zerby noted that Councilmember Sundberg asked that this item be placed on the agenda. Councilmember Sundberg stated she has started to review the preliminary Alternative Energy Study Report from the consultants. In doing so it became clear to her that there will be a lot of complex ideas presented in the Report. She suggested that two members of Council work with staff to refine the Report and then present that refined Report to Council along with recommendations about what would make CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES September 14, 2015 Page 15 of 19 sense for Shorewood. She clarified she was not trying to minimize the role of the other three members of Council. She offered to be on the Committee and suggested Mayor Zerby be the other member of the Committee. Mayor Zerby asked Councilmember Labadie and Councilmember Woodruff if they wanted to be on the Committee. Councilmember Woodruff stated he would like to see a copy of the preliminary Report from the consultants. He then stated he thought the consultant's presentation made to Council during its June 22, 2015, meeting about the status of the Study was quite thin. He thought they had gathered publicly available material about the subject. He thought the graphs presented did not tell Council much that he did not know. He noted that he wants to see the report because he does not think the City is getting much for what it is paying for. Councilmember Sundberg stated one of the issues had been in having staff provide the consultants with information they need on a timely basis due to lack of time. She thought the two - person Committee could work with staff to ensure they get the needed information to the consultants. She also thought it prudent to get the Study completed sooner versus later because of the redevelopment of the former Minnetonka Country Club property and possibly other developments in the area. Councilmember Woodruff stated he appreciates the concern about the inability of staff to provide the needed information. He noted he does not support establishing a Committee so Councilmembers can "ride herd" on staff so they work harder. That is Administrator Joynes's job. If that is not happening then Council needs to decide if there needs to be some other type of action taken. He noted that he did not like the consultants Council selected at the beginning and he likes them less and less as time goes on. Councilmember Sundberg stated members of Council are supposed to be policy leaders. If that needs encouragement from Council then so be it. Sundberg moved, establishing an Alternative Energy Study Council Committee composed of Mayor Zerby and Councilmember Sundberg with participation from other member of Council if they are interested. Zerby seconded the motion for discussion. Mayor Zerby asked Engineer Hornby if he thought the Committee would help expedite things. Hornby noted that over the last two weeks staff has provided the financial data and fleet information the consultants asked for and explained that he sent the consultants two emails about clarification that day. Administrator Joynes clarified that staff is neutral as to whether or not the Committee would be beneficial. Council needs to make that as a policy decision. Joynes then stated that from time to time staff has informed Council that there have been other unplanned activities that had to be addressed which resulted in the delay. Councilmember Sundberg stated she thought there is a broad range of courses for the City to pursue or not pursue. The Committee members might be able to take the deep dive into the report. She then stated that some of the recommendations are things being talked about are state wide. What needs to be assessed in is how they would apply to Shorewood if at all. She commented that if all members of Council want to be deeply involved so be it. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES September 14, 2015 Page 16 of 19 Mayor Zerby noted he would be happy to serve from a content standpoint. He stated he gets regular updates from Administrator Joynes about what staff is doing and he does not envision the Committee being more involved than that in providing direction to staff. Motion passed 3/1 with Woodruff dissenting. D. City of Excelsior's Request Regarding the Southshore Center Administrator Joynes explained that some time ago Excelsior City Manager Luger approached him about representatives from Excelsior and Shorewood meeting to try and resolve a number of outstanding issues. Some of the issues are involvement with the Southshore Center, proposed senior housing near the intersection of Highway 7 and Country Road 19 that would be located in both Cities, a possible shared event / Center coordinator. There are a few other items Excelsior would like to talk about. He had asked Luger to make a proposal for such a meeting. Excelsior Mayor Gaylord and Luger would represent Excelsior. A proposed meeting date is September 23. Excelsior would like Shorewood to choose representatives. He noted the process will be one of negotiation. Councilmember Sundberg stated she likes the idea and suggested Mayor Zerby and Administrator Joynes represent Shorewood's interests. Councilmember Woodruff noted he thought Council should be open to discussions with Excelsior and that he thought Mayor Zerby and Administrator Joynes would be the appropriate representatives. He stated there is a legal action underway and he asked if it would be appropriate for Shorewood representatives to be talking about the substance of that action while negotiating with a party to that action. Attorney Keane stated it would be totally appropriate. Councilmember Labadie noted that she also thinks this would be a good idea and that she thought Mayor Zerby would be the best Council representative. Sundberg moved, Labadie seconded, :authorizing Mayor Zerby and Administrator Joynes to serve as Shorewood's representatives in discussions and negotiations with representatives for the City of Excelsior. Motion passed 4/0. Mayor Zerby recessed the greeting at 9:01 P.M. Mayor Zerby reconvened the meeting at 9:04 P.M. 11. STAFF AND COUNCIL REPORTS A. Administrator and Staff 1. Trail Schedule Mayor Zerby noted the meeting packet contains a copy of the Trail Schedule. He stated because of the groundbreaking ceremony for the Smithtown Road Sidewalk East preceding this meeting another item on the schedule can be checked off as complete. 2. Retirement of Administrative Assistant Administrator Joynes noted Administrative Assistant Pat Fasching turned in her notice that she is retiring effective October 30. He stated the Personnel Committee has discussed the City can advertise internally CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES September 14, 2015 Page 17 of 19 for the position. The City has used an individual to back -fill front desk staff duties. After the required three days internal posting, staff will speak with that individual to find out if she has any interest in that position. If she does staff will look into her background in more depth. Mayor Zerby stated she will be missed. He encouraged there to be some recognition of Ms. Fasching's contributions. Administrator Joynes stated there would be. Three Rivers Park District — County Road 19 Trail Crossing Administrator Joynes explained he thought Councilmember Siakel had attended the open house when the Three Rivers Park District (TRPD) had presented its proposal for an at -grade LRT Trail Crossing at County Road 19. Siakel does not consider the at -grade proposal to be a viable solution. Siakel has asked Council to consider giving staff direction to draft a letter expressing Council's discomfort with the proposal and encouraging TRPD to reconsider a grade - separated solution. Staff has discussed with representatives from Springsted, the City's financial advisor, that maybe Hennepin County would be willing to participate in the tax abatement opportunity with Shorewood and the Minnetonka. School District with its funds going toward the construction of an above -grade crossing if the TRPD would back that. He stated staff would like direction to write that letter; a letter indicating the City would still like TRPD to pursue an -above grade crossing. Mayor Zerby clarified that he does not think Councilmember Siakel attended the September 10, 2015, TRPD open house. He did attend. He explained that he spoke with TRPD Board Chair Gunyou, the TRPD administrator, some TRPD engineers and a representative from the County. He informed them that Council had concerns about the at -grade crossing that had been proposed. He asked if TRPD would be willing to reconsider what had been proposed. Chair Gunyou indicated they would absolutely be willing to reconsider. It is not TRPD's ,intent to having a crossing that Council is not in support of. He learned TRPD is interested in pursuing federal grant money again in May 2016. TRPD representatives believe TRPD would have a good chance of being awarded a grant because it has a project that is "shovel ready"; the bridge crossing solution. TRPD would not find out until 2017 if they would be awarded grant monies. TRPD believes it could receive up to $4 million in grant funds. Zerby suggested Council send a letter of support to the TRPD to take that direction. Administrator Joynes stated that is good news. Zerby moved, Woodruff seconded, directing staff to draft a letter of support to the Three Rivers Park District related to its decision to reapply for federal grant funds to help fund the construction of an above -grade crossing for the LRT Trail at County Road 19. Councilmember Woodruff stated the at -grade solution TRPD proposed is not even a good. band aid. Mayor Zerby stated paying for the proposed at -grade crossing would just be throwing good money away. He then stated the marked crosswalk that was proposed would cause significant traffic issues at that crossing. Councilmember Sundberg stated the safety issues at the crossing coupled with all of the development that is either currently proposed or that could potentially occur in the condensed area makes the proposed solution unacceptable. If that were implemented it would be there for at least 10 years. She noted she liked the TRPD's attitude about revisiting this and she thought sending a letter of support was a good idea. Motion passed 4/0. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES September 14, 2015 Page 18 of 19 4. Economic Development Authority Refunding Bonds Director DeJong explained staff met with representatives from Springsted, the City's financial advisor, earlier in the day and part of the discussion focused on the possibility of refunding the bonds for the public safety facilities. He has spoken with Martha Ingram with Kennedy & Graven, the Shorewood Economic Development Authority's (FDA's) bond counsel. Ms. Ingram indicated the EDA could refund the bonds on its own without separate action from the Excelsior Fire District (EFD) Governing Board or the South Lake Minnetonka Police Department (SLMPD) Coordinating Committee. The only change would be modification in lease payment amounts which would be reduced. The EFD Board and the SLMPD Coordinating Committee will be given an opportunity to review what the EDA intends to do before the EDA moves forward. An EDA Board meeting will be scheduled for some time in the next month to talk about enrolling in the process. The goal is to have it completed prior to the February 1, 2016, . bond payments. There would be significant savings achieved from doing that; approximately $400,000. Originally the thought was to have a General Obligation (GO) bond issue (capital improvement bonds). But, there would be problems with doing that because of the way things are set up in the EFD and SLMPD joint powers agreements (JPAs). Instead it would be a straight refunding as EDA lease revenue bonds. DeJong recommended Council move forward with this before the EDA takes on too much interest rate risk. Mayor Zerby stated doing this is a "no brainer" to him while noting he knows it has to be discussed further. Director Brown stated the West Water Tower Rehabilitation Project is about two weeks ahead of schedule. The disinfection will begin tomorrow and the West Tower should be put back in service this week. The Tower and logos have been painted. Starting September 23 cellular providers can remount their equipment of the Tower. Councilmember Labadie stated that the company that painted the Tower donated its left over paint to the Minnewashta Elementary School and it was used to repaint the sign in front of the School. The sign was in need of repainting. Engineer Hornby stated the curb along Star Lane has been. installed. Pavement should be put down before Council's September 28 meeting. The contractor has to do some grading before that can be done. Mayor Zerby asked if the storm sewer system is working. Hornby explained an outlet needs to be excavated out to ensure the drain the system is draining subgrade properly. That will be worked on this week. Director Brown stated the curb has to cure for a minimum of seven days before the grading can be completed. Drivers cannot drive over the curb before the curb is cured either. Director DeJong stated staff has started the certification process for delinquent utility bills. A notice will be will be sent to all people who have a delinquent account. The delinquent amounts will be certified to property taxes at Hennepin County. Director Nielsen reminded Council that there is a joint meeting of the Council and Park Commission scheduled for September 22. He stated the City will send out permission slips this week for the Deer Management Program. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES September 14, 2015 Page 19 of 19 B. Mayor and City Council Councilmember Labadie stated she had received a phone call from a resident regarding a very precarious birch tree over the Smithtown Road sidewalk. She brought it do Director Brown's attention and in less than 48 hours the situation was resolved. She thanked Public Works personnel for being very responsive when it comes to public safety and for keeping the roadways clear. Mayor Zerby stated that on September 13 he accepted an award on behalf of the City of Shorewood. The award was given to the City on behalf of the Pollinator Nation for being a pollinator friendly City. They realized Shorewood was a leader in the State of Minnesota; it was the first to pass a pollinator friendly ordinance. The ordinance was quickly adopted by the Cities of Stillwater and Minneapolis as well as one other city. The award was constructed out of a piece of wood that was a 117 years old. It is a bee habitat. The award was presented by State Auditor Rebecca Otto. Woodruff moved, L.abadie seconded, Adjourning the City Council Regular Meeting of September 14, 2015, at 9:20 P.M. Motion passed 410. RESPECTFULLY SUBMITTED, Christine Freeman, Recorder 01""W IM J n P.anchyshyn, Cit Cle 1�