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06-13-16 CC Reg Mtg MinCITY COUNCIL REGULAR MEETING MONDAY, JUNE 13, 2016 MINUTES 5755 COUNTRY CLUB ROAD COUNCIL CHAMBERS VA1112A AV Acting Mayor Siakel called the meeting to order at 7:00 P.M. A. Roll Call Present. Acting Mayor Siakel; 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: Mayor Zerby B. Review Agenda Sundberg moved, Labadie seconded, approving the agenda as presented. Motion passed 4/0. A. City Council Work Session Minutes of May 31, 2016 Woodruff moved, Sundberg seconded, Approving the City Council Work Session Minutes of May 31, 2016, as presented. Motion passed 3/0/1 with Labadie abstaining due to her absence at the meeting. B. City Council Regular Meeting Minutes of May 31, 2016 Woodruff moved, Sundberg seconded, Approving the City Council Regular Meeting Minutes of May 31, 2016, as presented. Motion passed 3/0/1 with Labadie abstaining due to her absence at the meeting. � h Acting Mayor Siakel reviewed the items on the Consent Agenda. Labadie moved, Sundberg seconded, Approving the Motions Contained on the Consent Agenda and Adopting the Resolutions Therein. A. Approval of the Verified Claims List B. Adopting RESOLUTION NO. 16 -0419 "A Resolution Appointing Election Judges and Establishing an Absentee Ballot Board." C. Adopting RESOLUTION NO. 16 -042, "A Resolution Approving a Temporary `On- Sale' Liquor License to the Excelsior Firefighters Relief Association." Motion passed 4/0. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES June 13, 2016 Page 2 of 15 4. MATTERS FROM THE FLOOR There were no matters from the floor presented this evening. 5. PUBLIC HEARING 6. REPORTS AND PRESENTATIONS 7. PARKS 8. PLANNING A. Report by Robert Bean on the June 7, 2016, Planning Commission meeting. Planning Commissioner Bean reported on matters considered and actions taken at the June 7, 2016, Planning Commission meeting (as detailed in the minutes of that meeting). Councilmember Sundberg thanked Commissioner Bean for doing a good job summarizing a very long meeting. She noted that during the meeting Director Nielsen suggested that amending the City Ordinance to address wind energy systems should be done sometime in the future. Acting Mayor Siakel thanked Commissioner Bean for his report. B. Minnetonka Country Club Final Plat and Final Plan Director Nielsen explained Mattamy Homes has submitted its final plat and final plan for the Minnetonka Country Club (MCC) planned unit development (PUD). The final plan is for the whole project. The final plat is for the first phase of the project. The plans are consistent with the Concept Stage and Development Stage approvals. Mattainy had been given approval for early grading of the site. The next step in the project is to begin putting in underground utilities. The developer will end up paying to the City $730,000 in water connection fees, $780,000 in park dedication fees and $87,600 in local sanitary sewer access charges. The developer will get a refund that equals their cost of getting watermain to the front of the individual lots. He noted the meeting packet contains a copy of a resolution approving the final plan and final plat. The words "Final Plan and" need to added to the heading of the resolution. The packet also contains a copy of an ordinance rezoning the property to a PUD district. That ordinance includes the Development Agreement for the MCC property which lists all of the details of the various requirements that were imposed as part of the Concept Stage and Development Stage plans. He then noted Rick Packer and Brian Theis representing Mattamy Homes were present. Nielsen went on to note staff recommends approval of the final plan and final plat. Acting Mayor Siakel asked if the approval is for the first phase of the final plat. Director Nielsen confirmed that. Councilmember Sundberg stated she thought the Traffic Committee had made recommendations to slightly move one of the entrances onto the site off of Smithtown Road. She asked if approving these items would prevent taking action on those recommendations. Engineer Hornby noted the Committee was CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES June 13, 2016 Page 3 of 15 not allowed to change anything in the plat. He explained the owner across from the east access point on to the site had asked that the access point be shifted slightly so lights from vehicles leaving the site would not shine into his living room. That was done. Director Nielsen noted as part of the PUD the City obtained additional right -of -way (ROW) along Smithtown Road and Country Club Road. That was included in the Development Stage approval. Councilmember Woodruff stated the staff memorandum for this item indicates the materials for this include a copy of the City Engineer's recommendations. He asked where in the final document for the PUD does it say the developer has to adhere to those recommendations. Director Nielsen explained that in the Development Agreement under the Improvements Installed by Developer section it states consistent with the plan and specifications approved by the City Engineer. Woodruff asked if the memo from Engineer Hornby dated June 8, 2016, is what is being referred to. Nielsen responded yes. Woodruff noted the on page 5, Item 8 at the end of the sentence two Develop needs to be changed to Developer. Woodruff explained that in the Planting Plan & Maintenance Manual under Item 1 Native Vegetation Areas in Item B. Establishment and Maintenance Plan in Year 2, Year 3 and Year 4 evaluation all say the plantings should not include more than 50% invasive species. He has a problem with 50 %; it is over the top from his perspective. He asked why it is 50 %. He noted he could accept 10 %. Director Nielsen noted he would research that. Woodruff noted that in Year 2 evaluation in the second bullet there are repeated words that need to be deleted. Acting Mayor Siakel asked Councilmember Woodruff what he would consider to be a reasonable amount of invasive species. Woodruff stated he does not have a technical recommendation. He would like there to be no invasive species but that is not practical. Siakel stated the City's goal is to eliminate to a large extent invasive species. Woodruff noted the City has an obligation under state law to manage that process. Acting Mayor Siakel asked Mr. Packer if he would accept changing the evaluations to say "should not include invasive species." Mr. Packer stated he needs to find out from Mattamy's consultant if that means non- native species or invasive species noting they are not the same. He then stated if it is 50% invasive that is too high yet none is practically impossible. He noted that City staff and Mattamy's consultant should be able to come up with an acceptable amount. Administrator Joynes recommended Council adopt the resolution approving final plan and final plat contingent upon staff coming back to Council with the developer's recommendation on invasive species and justification for that recommendation. Mr. Packer stated he would support that. Mr. Packer stated the landscape plan indicates a lot of native areas yet it is his recollection the discussion was about more natural plants than native plants. That is because as time goes on the maintenance of the native plantings becomes extreme. The only way to treat it is to kill everything and then replant the area. Councilmember Woodruff stated there is no need for all native plants and explained that natural plantings may not be native to Minnesota. Acting Mayor Siakel suggested adopting the resolution contingent upon an agreement to the type of plantings. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES June 13, 2016 Page 4 of 15 Councilmember Sundberg stated she thought invasive species are more defined and they can be controlled. Buckthorn and garlic mustard can be controlled. Her greatest concern is about invasive species. Councilmember Labadie stated that Item 3.D in the Development Agreement Special Conditions of Approval states "Total impervious surface on each lot within the plat shall not exceed 40 percent." She asked what the maximum impervious surface is for the surrounding areas. Director Nielsen stated that for non - shoreland properties it is normally 33 percent. He explained that because the City is going to get 40 percent of the site as open space the City has allowed a higher percentage of impervious surface per lot. Labadie asked if there is any concern about allowing an extra 7 percent from an engineering perspective. Engineer Hornby explained that the drainage systems and the stormwater facilities that would be constructed as part of the project would handle the stormwater flow. The offsite discharge would satisfy the criteria. Labadie then stated Item 3.E states "It is anticipated that the Developer will purchase the easterly portion of the property located at 5985 Seamans Drive and incorporate it into the final plat for the third phase of the development." She asked if the owner of that property and the developer are still in the process of negotiating that. Mr. Packer explained the property owner approached Mattamy about purchasing a portion of their property. The parties are in the process of finalizing the purchase agreement. Mattamy anticipates closing on the purchase during July 2017. At that time there will need to be a lot split and combination. The property owner wants to run their nursery on the property this year. Mr. Packer explained there are a couple of land swaps that would be accomplished with plat to adjacent properties. Mattamy is giving some of the Outlots to property owners. Those are listed in the Development Agreement. Mr. Packer asked if there are still going to be 7.5 foot setbacks for the age - targeted lots on the east side of the site. Director Nielsen responded yes and stated he assumes that is what is shown on the setback map. Nielsen noted the base requirement is what the R -1 C zoning district requires and the exceptions are shown on the setback map. Director Nielsen stated the final plat shows 5 -foot drainage and utility easements on the lots. The City Ordinance requires 10 feet. The City asks that the plat be revised to reflect that. The easements can remain 5 feet on the age - targeted lots on the east because they only have 7.5 foot setbacks. Mr. Packer noted that Mattamy Homes is going to build the age - targeted units. Acting Mayor Siakel stated she thought the age - targeted lots on the east were moved south because the builder who was going to build those age- targeted units wanted the units to be either walkout or lookout units. Mr. Packer stated that after assessing the market it was determined that those units needed to be walkouts. Mattamy's marketing people originally thought they did not need to be walkout lots. That move was not done for Charles Cudd who was close to being the builder for those units. Woodruff moved, Sundberg seconded, Adopting RESOLUTION NO. 16 -043, "A Resolution Adopting the Final Plan and Final Plat of Minnetonka Country Club (PUD) subject to the resolution of the invasive species question in the Planting Plan & Maintenance Manual and the revision of the final plat to show 10 foot drainage and utility easements for the traditional lots and 5 feet for the age - targeted lots. Motion passed 4/0. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES .Lune 13, 2016 Page 5 of 15 Sundberg moved, Woodruff seconded, Approving ORDINANCE NO. 529, "An Ordinance Amending Section 1201.09 Subd. 2 of the Shorewood Zoning Code — the Shorewood Zoning Map (Minnetonka Country Club PUD)." Motion passed 4/0. C. Oppidan Investment Company Final Plat and Final Plan Director Nielsen explained that Oppidan Investment Company has submitted its final plat and final plan for its Shorewood Senior Living planned unit development (PUD) near Chaska Road. Oppidan intends to combine the three parcels involved in the project. As part of the project additional right -of -way would be dedicated along Chaska Road. Drainage and utility easements would be provided consistent with the City Ordinance. Oppidan's project is dependent on tax increment financing (TIF). That will be discussed under Item 10.A on the agenda and the decision on TIF will be made in Tuly 2016. As a result of this project the developer will end up paying the City $400,000 toward the extension of watermain, $88,400 in park dedication fees and $16,320 in local sanitary sewer access charges. One of the key issues early on was the sparseness of the proposed landscaping plan. The sparseness was to a large extent because of the lack of room to do the type of landscaping and screening the City wanted. Part of the TIF proposal for the project includes burying the overhead power lines and installing a storm sewer to replace the ditch currently along Chaska Road. Doing those two things would provide room for more landscaping. The revised landscape plan reflects much better screening of the parking lot and it softens the building mass as viewed by residents living on the other side of Chaska. Road. Nielsen noted staff recommends approval of the final plat and final plan. Councilmember Labadie stated she thought the revised landscape plan is a great improvement over the original plan. Councilmember Woodruff asked where in the final document for the PUD does it say the developer has to adhere to the City Engineer's recommendations which are specified in his memorandum dated May 18, 2016. Is it included in the Development Agreement? Director. Nielsen responded it should be. Woodruff stated that could be added to the resolution when it is adopted. Nielsen noted the off -site improvements would be done by the City. Councilmember Sundberg stated she supports what has been submitted. She asked Council not to forget about dealing with the existing issue of the exit off of Highway 7 to Chaska Road. Director Nielsen stated Item 8 Standards of Construction refers to plans and specifications approved by the City Engineer. Councilmember Woodruff stated in the future he would prefer that the City Engineer's memo be referred to by date. Woodruff moved, Sundberg seconded, Adopting RESOLUTION NO. 16 -044, "A Resolution Adopting the Final Plan and Final Plat of Shorewood Senior Living (PUD) subject to it including the requirements stipulated in the City Engineer's report dated May 18, 2016. Motion passed Motion passed 4/0. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES June 1.3, 2016 Page 6 of 15 Woodruff moved, Labadie seconded, Approving ORDINANCE NO. 530, "An Ordinance Amending Section 1201.09 Subd. 2 of the Shorewood Zoning Code — the Shorewood Zoning Map (Shorewood Senior Laving PUD)." Motion passed 4/0. 9. ENGINEERING /PUBLIC WORDS A. Discussion of Smithtown Road Trail Project and Minnetonka Country Club Project Director Brown explained the Smithtown Road East Sidewalk Extension Project is well under way. That has at times disrupted traffic along Smithtown Road. There have been flag people along Country Club Road because of things related to the Minnetonka Country Club (MCC) redevelopment project. He had received complaints over the last few weeks from drivers who were upset about having traffic disrupted on both roadways at the same time. Staff met with representatives of both contractors to discuss if there was a way to provide drivers with some relief. The contractor for the Smithtown Road sidewalk project offered to delay for two weeks having the crew start work on the actual sidewalk. That would allow traffic to flow in both directions without disruption during those two weeks while the closure occurs on Country Club Road. The intent had been to present that solution to Council. After the meeting packet was published he again received phone calls from that same group thanking people for the efforts to try and help with the traffic disruptions and requested that the work go on as originally planned. They preferred to endure the inconvenience of both roadways being impacted at the same time instead of stopping work on the sidewalk for two weeks. Therefore, there is no need for Council to take action on this. Acting Mayor Siakel asked how long Country Club Road would be closed for and if it is because of the MCC project. Director Brown stated the contractor for the Country Club Road project has estimated it would be closed for 2 — 3 days. Staff is planning for 2 — 5 days because of potential rain delays. Director Brown stated a segment of Yellowstone Trail west of Country Club Road will be closed for about two weeks. Brown noted the Country Club Road closure is required because of the MCC project. There is a need to relocate a Metropolitan Council Environmental Services (MCES) sanitary sewer line. The Yellowstone Trail closure is in part because of the MCC project and because MCES wants to replace a segment of its sewer line. Brown also noted the official detour in that area is Country Road 19. Residents living in the area are likely aware of other routes that can be taken. 10. GENERAL /NEW BUSINESS A. Draft Tax Increment Financing Plan (Oppidan Project) Administrator Joynes explained Council had approved a schedule of events for creating a Tax Increment Financing (TIF) Plan and a TIF District relating to Oppidan Investment Company's proposed Shorewood Senior Living project during its May 31, 2015, meeting. Earlier during this meeting Council approved the land use issues for the Oppidan's Shorewood Senior Living planned unit development (PUD). Council is now being asked to consider adopting a draft TIF Plan for the project (a copy of the draft Plan was included in the meeting packet). Once the draft Plan is approved it can be sent to the Minnetonka School District and Hennepin County for comment; something required by state law. The actual approval of the TIF District is within Shorewood's jurisdiction. The financing is something Council decides. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES June 13, 2016 Page 7 of 15 He provided a high level summary of the TIF Plan. ➢ The Tax Increment District is the Oppidan project site (the three lots that will be combined). When developed Shorewood Senior Housing will generate new taxes. ➢ The Tax Increment Project Area will be designated as the entire City. The City can spend a percentage of taxes generated by the Oppidan project outside of District to make improvements in the City (e.g.; dealing with the exit off of Highway 7 onto Chaska Road). ➢ The current value of the three parcels for tax purposes is $985,000 and the value after the project is complete is projected to be $17,194,320. The current tax collected for all of jurisdictions on the existing three parcels is $21,955 and the amount after the project is complete is projected to be $214,929. ➢ In nineteen years the tax revenue received by Shorewood from those three parcels will increase from $4,383 to approximately $83,315. In nineteen years the tax revenue received by the School District will increase from $3,218 to approximately $63,084. In nineteen years the tax revenue received. by the County will increase from $6,578 to approximately $125,016. ➢ During the time of the existence of the TIF District the City would capture the increase in taxes and use them to do improvements to support the project as well as public improvements the Council deems appropriate. ➢ What is being proposed is considered a pay -as- you -go TIF Plan. The project is repaid on an annual basis from the increment generated by the property. The City is not offering to issue debt on this project. If the owner pays less in taxes than estimated the returned increments is also less. That would reduce the risk to the City and the bank that finances the project. It is the least risky way to do TIF. It is speculated that all of the risk would be gone in the first year and a half once the project is constructed and put into the tax rolls. ➢ The extension of Shorewood watermain is quite costly. Council gave preliminary approval to finance the extension though cost sharing. Oppidan will contribute $400,000; $300,000 will be used from the Water Fund; and, water hookups should occur along the new line and bring in approximately $300,000. Oppidan originally proposed contributing $200,000. ➢ TIF project benefits to the City include things like installing a stormwater pipe to replace the stormwater ditch. That allows power lines to be buried. As a result the landscaping setbacks could be increased and the height limitations for new trees would be eliminated. There will be funding available for some local traffic improvements which are yet to be determined. ➢ Council is being asked to adopt the draft TIF Plan this evening. If that is done then a copy of the draft Plan will be sent to the Minnetonka School District and Hennepin County for comment on June 14. The Planning Commission will review the daft Plan during its June 21, 2016, special meeting. There would be a special City Council meeting and an Economic Development Authority meeting scheduled for July 14 for final approval of the Plan. During that 30 -day period staff and Springsted will be working with the proformas from Oppidan to refine the numbers and prove that the but -for test is met. Joynes stated the draft TIF Plan is very viable. It is shorter than the 25 years allowed. Staff believes the proposed project would be the best use of the three lots. Given the soil conditions and the location of the three properties staff does not think there is any other project that would work. The project would give the City more diversity in its housing mix; that has been talked about for years. The senior housing project would benefit Shorewood residents and residents in the surrounding communities. Joynes noted that staff recommends approval of the draft TIF Plan. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES June 13, 2016 Page 8 of 15 Councilmember Labadie asked if a City representative was going to meet with someone from the School District and Hennepin County or will they just be notified. Administrator Joynes clarified they will be notified and noted both are very familiar with the TIF process. Councilmember Woodruff stated he thought burying the power lines would be a great thing to do. He asked how that would impact the residents in that area. Engineer Hornby explained another power pole may have to be put up on the other side of the roadway. Service would have to be run across to the other side of the road and then up the pole. Woodruff asked how the pay -as- you -go would work from the City's cash flow perspective. For example, contractors will want to be paid for extending the watermain. He asked how the City will finance that. Director DeJong stated it would be financed with an inter fund loan with the fund yet to be determined. Woodruff stated that means there is no external money. The City would borrow from itself and then pay itself back with tax revenues. Administrator Joynes concurred. Woodruff stated the $300,000 in revenue from water hookups is just an opportunity number. The City's record on getting property owners to hookup to existing watermain has not been that good. That number may never be achieved. Administrator Joynes stated there are 22 properties that hooked up to the Excelsior water system that could hook up to the Shorewood system once the extension is cone. There would be no additional cost to them. Those who are not currently on municipal water but would like to hook up to it when available would have to pay the hookup charge. Woodruff stated he would be more comfortable if the City did not depend on getting the $300,000. Acting Mayor Siakel stated. she has heard from some of the 22 property owners that they do not want to switch to the Shorewood system because Excelsior softens its water. Acting Mayor Siakel stated she thought the City may require more cash up front then presented. She then stated she thought the numbers presented are best case numbers. She went on to state something needs to be done with the exit from Highway 7 to Chaska Road. She explained the staff report states there is $62,000 included in the Plan for traffic improvements. She thought that is not enough for a project that is going to require more engineering. She questioned if that is enough to make the needed improvements. Administrator Joynes suggested viewing this similar to approving the maximum tax levy in September. The levy can be reduced but not increased before the final levy is adopted. What is being proposed is framed the same way. He stated the City has the ability to decide where it wants to put the money. It is designed to be the best case scenario for what the City could spend yet staff expects it to be somewhat less. Acting Mayor Siakel stated per State Statute the maximum life of a TIF District is 25 years but what is being proposed is for 19 years. Administrator Joynes stated that is based on the analysis done to date. It should close around year 19 and noted that tax values can change and the economy can change. Councilmember Woodruff asked if Council would be provided with a detailed cash flow analysis for its July 14 meeting when it will be asked to approve the final TIF Plan. Councilmember Sundberg asked Administrator Joynes to comment on resident concerns that the City may be subsidizing a private enterprise. Administrator Joynes explained TIF is designed to encourage a public private partnership. It has been abused at times and therefore the law has been adjusted to try and stop that. The project entails combining three lots which have significant soil problems that would make it impossible for someone to do the CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES June 13, 2016 Page 9 of 15 project without financial help. TIF financing allows the City to help make the properties developable like they would be in any other situation. The City will help pay some of the extraordinary cost of soil remediation. Shorewood watermain has to be extended a long way; that is another extraordinary cost. The project does fit in with what the City wants. It would be a good project there and it provides housing diversity. That is the public private partnership. The City also has the opportunity to create an opportunity to request some planning changes that the City would like to see that a developer may not normally do. For example, there would be better screening and landscaping because it has some skin in the game. The developer is driven by profit margin and the City is driven by public interest. Oppidan is not responsible for the traffic improvements; the City is. The value of the project can be increased by the City making some improvements. It is good for the developer because it gets to do a project it could. not otherwise do. It is good for the City because it gets somethings it would not otherwise get. Councilmember Sundberg stated she thought the proposed project fits on a very difficult piece of property. If it did not move forward it would be a lost opportunity for the City. She thanked Administrator Joynes for explaining the rationale for entering into this joint venture with Oppidan with TIF. Director DeJong explained that once the TIF District is decertified and the project is back on the full tax rolls the City will collect more in taxes in one year than it would have collected over the 19 years the District was in place. The development would not happen without TIF assistance because it would not be economical for the developer to do all of the things the City would like done including extending watermain to the south side of Highway 7. Sundberg moved, Labadie seconded, Adopting RESOLUTION NO. 16 -045, "A Resolution Adopting the Draft Tax Increment Financing Plan for TIF District No. 2 ( Oppidan Senior Housing)." Motion passed 4/0. B. 2016 Deer Management Program Director Nielsen explained representatives from Metro Bowhunters Resource Base (MBRB) contacted staff to find out if the City was interested in continuing its Deer Management Program in 2016. The City had an aerial deer survey done on January 15, 2016. The snapshot survey map showed the counts are up (particularly in the southeast part of the City) when compared to the aerial survey done in 2014. The MBRB has suggested four weekends plus a backup weekend for the harvest. The dates are: September 23 — 25; October 14 -16; November 4 — 6; November 25 -27; and the backup date is December 9 — 11. For this year MBRB spread the dates out to have three weeks between each harvest. MBRB hopes that would help attain a better result. Councilmember Woodruff stated he thought the program has been well received by the residents. The results have been reasonable and the costs have been very reasonable. He then stated that residents living along Smithtown Road had told him that the activities on the Minnetonka Country Club redevelopment site have driven deer out of there and the deer have come on to their- properties. Woodruff moved, Labadie seconded, establishing the dates for the 2016 Deer Management Program with Metro Bowhunters Resource Base conducting the harvesting. In response to a comment from Acting Mayor Siakel, Director Nielsen stated that it would be better if there would be more sites on the east side of Christmas Lake. They were hoping for an additional site between Galpin Lake and Christmas Lake. There are three good ones but adding one more would be better. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES Jane 13, 2016 Page 10 of 15 Motion passed 4/0. C. Crescent Beach Maintenance Agreement Administrator Joynes explained the City received a request from the City of Tonka Bay a few months ago to revise the 2007 Memorandum of Understanding (MOU) between the two Cities regarding the funding and maintenance of Crescent Beach. The bulk of the Beach is in Tonka Bay. The 2007 MOU calls for the Cities to alternate the maintenance of the Beach every other week. That has been found to be unworkable. Representatives from the two Cities discussed having just one of the Cities maintain the Beach. In the proposed Agreement Tonka Bay is willing to provide all of the maintenance at no cost to Shorewood provided Shorewood would be willing to pay for one -half the cost of future equipment and improvements. The new equipment and improvements would be at Tonka Bay's sole discretion. Director Brown stated Shorewood Public Works provides $6,000 — $7,000 a year in labor costs for maintenance and improvements to the Beach. The last life guard services agreement was approved for $3,039 per year. That also factors into the new Agreement. Acting Mayor Siakel stated a few days ago the beach was closed due to E. coli. She asked what is causing that. Director Brown explained the prevailing winds blow in feces from geese and ducks. That is what causes the high E. coli levels. Many times the wind is blowing in the direction of the Beach. Last week the Lake Minnetonka Conservation District (LMCD) had people out harvesting Eurasian Watermilfoil. The next morning the beach was inundated with milfoil and dead fish because the wind blew it in. Siakel asked if Tonka Bay is doing enough to clean up the beach and to ensure it is not contaminated. She stated she would like there to be some assurance that the Beach would be kept neat and orderly. Administrator Joynes asked how much money Shorewood has spent annually on equipment and improvements to the beach. Director Brown stated it averages out to be about $1,000 — $2,000 a year. Joynes noted that he thought from a financial perspective what is being proposed is a good deal for Shorewood. It is also a good deal because in the past there have been issues about which City is supposed to be maintaining the Beach some weeks. Acting Mayor Siakel suggested placing a limit on the amount Tonka Bay can spend on equipment without consent from the Shorewood Council as a way of controlling Shorewood's cost. Councilmember Sundberg stated she is not worried about the current Tonka Bay Council. But, members of councils change. She noted that she supports Acting Mayor Siakel's idea. Councilmember Labadie concurred. Councilmember Labadie stated last year she brought up the issue of lifeguard services ending before school began the Tuesday after Labor Day. Beaches are highly used over Labor Day weekend. Last year she suggested extending those services through Labor Day weekend. She asked if that has been discussed with Tonka Bay. Director Brown stated he was not aware of any progress on that and noted it could be brought to Tonka Bay's attention. Labadie stated she thought the contract for the services was started on June 1; children were still in school then. She suggested taking 10 days away on the front end and adding them to the end of summer. Administrator Joynes clarified that Minnetonka Community Education sets the schedule for the Beach. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES June 13, 2016 Page 11 of 15 Councilmember Siakel stated that in the past that the end date may have been somewhat be influenced by college start dates; a lot of the lifeguards are college students. She then stated because public schools cannot start before Labor Day without approval now it may be appropriate to revisit the close date. In response to a question from Councilmember Woodruff, Director Brown clarified the lifeguard services agreement is a two -year agreement and therefore it covers this year. Councilmember Woodruff agreed with Acting Mayor Siakel's suggestion to put a limit on how much Tonka Bay can spend on equipment or improvements without approval from the Shorewood Council. He offered up the idea of setting a $2,000 limit. He noted he really dislikes open ended agreements. In response to a comment from Acting Mayor Siakel, Administrator Joynes clarified that Shorewood would not have to pay for any of the routine maintenance labor costs. It would only have to pay one -half of the equipment and improvement costs. Administrator Joynes noted that the Agreement contains a cancellation clause that would allow either City to terminate the Agreement without cause. He thought that was enough good faith to go forward with the Agreement. He explained the intent of the Agreement is to streamline the maintenance of the Beach. Councilmember Woodruff asked if Council wants to put a limit on the cost of equipment and improvements that can be made without approval from the Shorewood Council. He noted he does. Administrator Joynes stated if it gets to be onerous Shorewood can terminate the Agreement. He asked if the proposed Tonka Bay maintenance include Tonka Bay clearing the ditch. Director Brown responded yes. Siakel moved, Sundberg seconded, approving the Agreement Regarding the Maintenance and Improvement of Crescent Beach subject to limiting the amount Tonka Bay can spend on equipment and beach improvements without Shorewood Council approval to $2,500 for Shorewood's share. Motion passed 4/0. D. Assessment Services Agreement Director DeJong explained the meeting packet contains a copy of renewed Assessment Services Agreement between Shorewood and Hennepin County. The City has used Hennepin County for assessments services since the 2000 assessment year. The cost for those services is estimated to go up 4.2 percent for 2017. He noted that he thought it was in the City's best interest to renew the agreement for another four years rather than contracting with a private assessment firm to assess properties in Shorewood. Contracting with a private firm would put the burden back on Council to act as the Board of Equalization rather than having the open book process the City currently has. DeJong noted staff recommends Council authorize Mayor Zerby to sign the Agreement as presented. Councilmember Woodruff stated it was his recollection that when he joined Council the City's cost for those services was about $80,000 annually. That means the cost has increased about 50 percent in 10 years. The memorandum from Hennepin County states that it is ".... maldng every effort to try and keep the costs to a minimum while still providing the best possible customer service ..." Gas prices are down and labor is likely up but he does not think the County is giving its assessors a 4.5 percent salary increase. He noted that he does not like the agreement but he does not think the City has a choice. He does not like the idea that the County can increase the cost 7.5 percent annually while the City has no recourse. He thought that is nonsensical. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES June 13, 2016 Page 12 of 15 Sundberg moved, Siakel seconded, authorizing Mayor Zerby to sign the Assessment Services Agreement with Hennepin County as presented. Motion passed 4l0. A. Administrator and Staff 1. Trail Schedule Acting Mayor Siakel noted the meeting packet contains a copy of the Trail Schedule. Engineer Hornby explained the City contracted with WSB & Associates to prepare a 2016 Regional Solicitation Grant Application and Supporting Documentation for Galpin Lake Road Trail Improvements. That effort is in progress. The City is going to request letters of support from the Cities of Chanhassen and Excelsior, Carver and Hennepin Counties, and the Minnesota Department of Transportation (MnDOT) this week. The pedestrian facility would connect to Chanhassen's pedestrian facility and to a trail in Excelsior on the south side of Highway 7. MnDOT would be involved because part of the facility would be in its right -of -way. The facility would get pedestrians off of the Highway. He then explained the storm sewer pipe has been put in along Smithtown Road. The next phase for the Smithtown Road east sidewalk extension involves grading. After that curb and gutter would be put in. Acting Mayor Siakel asked in which direction the surface of the sidewalk would be put down. Engineer Hornby stated he anticipates it would be done from west to east based on the work that the contractor has already done. 2. Update on Administrative Search Administrator Joynes explained the city administrator application deadline was the close of business on June 10. A total of 26 applications were received. The Personnel Committee received copies of all 26. The Committee is scheduled to meet on June 20 to discuss them. The applications were separated into four groups based on experience levels. The intent is to come back to the full Council on June 27 with some recommendations on how to move forward. Councilmember Sundberg asked what the overall quality of the applications was. Administrator Joynes stated he thought about one -half of them should be discarded right away based on clear cut experience in municipal govermnent. There are five or six applicants who have relevant significant experience; they are in different stages of their careers. Good judgements will have to be made about their reasons for applying. A number of applicants are nontraditional candidates; they have relevant experience but not traditional in how the position has normally been filled. The applicant pool is weaker than those in the past. 3. Update on Tonka Splash Event Director Brown stated the Tonka United. Soccer Association Tonka Splash traveling tournament was held June 3 — 5, 2016. The Association reduced the number of teams participating just as it said it would. He and the South Lake Minnetonka Police Department (SLMPD) both report there were no issues. He thought this year's event was managed well. If the Association applies to have the event again next year in Freeman Park staff would recommend the City approve it. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES June 13, 2016 Page 13 of 15 Councilmember Labadie explained she attended one game on Friday evening and two on Saturday. Members of her family participated on Saturday. There was no problem finding parking. The event was well organized. Volunteers directed drivers on where to park. She heard comments throughout the event of people expressing how surprised they were about the event being so well organized. and well run. The 2015 event was not that way. She encouraged the City to keep the event in Shorewood. Director Brown thanked Councilmember Labadie for scheduling the initial meetings with members of the Association. He stated Mayor Zerby had received some complaints from people who were not pleased because there was no access to Highway during that time. He spoke with SLMPD representatives and they are adamant that keeping drivers off that entrance on to Highway was critical. Acting Mayor Siakel stated she thought the signage was good at directing people where to drive to get on to Highway 7. Councilmember Woodruff stated he was ambushed last weekend by people asking why the City allowed the event to take place in Freeman Park this year because it caused so many problems in the past. He asked staff to put something on the City's website and to publish something in the newsletter explaining the changes that were made for this year's event and that the SLMPD thought it was a much better event. Councilmember Labadie stated this year several neighborhoods in the cul -de -sacs bordering the trail had no parking signs put up. That made it easier for residents in that area to leave and return to their properties. Director Brown noted the June 10 Music in the Park event was postponed. Director DeJong stated 2017 department budgets will be sent out this week. He then stated the survey the City a few years ago regarding local performance measures is somewhat dated. He intends to work with the Communications Coordinator on a small survey that can be emailed out to residents. The updated local performance measures have to be sent to the Office of the State Auditor by June 30. Director Nielsen stated the first round of the annual park tours was postponed from June 14 to June 28 due to anticipated rain. B. Mayor and City Council Councilmember Labadie noted the annual Excelsior Firefighters Relief Association (EFRA) fundraising dance is scheduled for July 15 from 5:00 P.M. to midnight. It is a great fundraiser and a fun evening. She encouraged people to attend. Councilmember Sundberg stated she attended the June 8, 2016, Excelsior Fire District (EFD) Board meeting. There was a lengthy discussion about the EFRA's Investment Policy. The discussion centered to a large extent on the volatility of the market. From her vantage point the Policy is very conservative. For an organization like the EFRA it is best to have a conservative policy and stick with it. It was noted that having a policy that achieves higher earnings benefits the firefighters because their per- year -of- service (PYOS) increases. She noted there is a joint meeting of the EFD member cities scheduled for June 22 at 6:00 P.M. to discuss the 2017 EFD Operating Budget, 2017 Capital Improvement Program (CIP) and the 2017 Building Projects Improvement Program (the BPIP). Acting Mayor Siakel stated it is good for other members of the member City Councils to come to the joint meeting; not just those on the EFD Board. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES June 13, 2016 Page 14 of 15 Councilmember Woodruff stated that more than one year ago the EFRA decided to have Parr McKnight Wealth Management Group of Wells Fargo manage about one half of the EFRA's investment portfolio. It was his recollection that last fall the first annual report reflected less than stellar performance by Parr. He thought it was significantly less than what he termed "the unmanaged portion" of the portfolio. He asked if the EFRA is considering changing how their investments are managed. Acting Mayor Siakel explained that former EFD Boardmember and former Shorewood Councilmember Jeff Bailey had been asked to come and speak to the EFD Board about the EFRA's Investment Policy because he helped the EFRA craft the Policy. When the EFRA decided to put half of its portfolio with Parr it left the other half with the State Board of Investment (SBI). The EFRA decided to again basically put its entire portfolio back with the SBI. Mr. Bailey chairs the SBI Investment Advisory Council. When there is a significant loss in the EFRA's fund for pension because of a significant market downturn and the fund becomes underfunded the EFD member cities are required to make a mandatory contribution to that fund. EFD Boardmember Greg Miller has expressed concern that as the balance in that fund continues to grow and potentially reaches $10 million, for example, the potential liability for the member cites increases significantly. The EFD Board has discussed the possibility of increasing the level in its Fund Balance Policy. That Policy current recommends reserves of 20 — 30 percent. Another way to prepare for a shortfall in the fund for pensions would be to put funds aside at the EFD level to help offset the impact of a mandatory contribution. Yet another way to prepare for a shortfall is for the EFD member cities to set money aside for that eventuality or increase its reserve. There are differing perspectives about the EFRA's defined pension plan and continuing with it as it is. Councilmember Sundberg stated that she is going to attend the Keep the Hives Alive Tour event on June 14. Communications Coordinator Moore is going as well. Attorney Keane stated he is going to attend the Legislative Update for Minnesota Attorneys before Council's next meeting. He will give an update on legislative changes during Council's June 27 meeting. Councilmember Woodruff stated there was a recent ruling against the City regarding the purchase of the Southshore Center. He thought there is a period during which the City can appeal the ruling. He asked what the next step is for the City. Attorney Keane noted Council did direct filing the appeal. The notice of the appeal and the statement of case have been prepared and will likely be filed June 14. Acting Mayor Siakel stated she had received calls from a couple of residents about power outages. One resident told her that her power had gone out at least twice over the last couple of weeks. That resident did call Xcel Energy and was told by the individual who answered the call that they could not direct her to anyone that could help her. She suggested staff contact one of the people who came and spoke to Council about outages. Director Brown stated the power outage that impacted the largest area was due to circuit failure at the substation in the City of Excelsior. He has not heard about what caused the outage that impacted parts west. Siakel stated Xcel should not be telling residents no one at Xcel can help them. Siakel and Councilmember Woodruff both suggested staff invite Xcel representatives to again come to a Council meeting to talk about outages. Siakel then stated that she assumes Lake Minnetonka Conservation District representative Ms. Zorn was not able to make it this evening. Administrator Joynes confirmed that. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES June 13, 2016 Page 15 of 15 ��. -armi-44ilki Woodruff moved, Sundberg seconded, Adjourning the City Council Regular Meeting of June 13, 2016, at 8:53 P.M. Motion passed 4/0. RESPECTFULLY SUBMITTED, Christine Freeman, Recorder Ott� Je Panchyshyn, City Olerk 9 Scotolerby, May