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08-22-16 CC Reg Mtg MinCITY OF SHOREWOOD CITY COUNCIL REGULAR MEETING MONDAY, AUGUST 22, 2016 MINUTES 1. CONVENE CITY COUNCIL REGULAR MEETING Mayor Zerby called the meeting to order at 7:02 P.M. A. Roll Call 5755 COUNTRY CLUB ROAD COUNCIL CHAMBERS 7:00 P.M. Present. Mayor Zerby; Councilmembers Siakel 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: Councilmembers Labadie and Sundberg. B. Review Agenda Mayor Zerby asked that Item 10.0 be removed from the agenda based on discussions with staff. Zerby moved, Woodruff seconded, approving the agenda as amended. Motion passed 310. 2. APPROVAL OF MINUTES A. City Council Executive Session Minutes of August 5, 2016 Woodruff moved, Siakel seconded, Approving the City Council Executive Session Minutes of August 5, 2016, as presented. Motion passed 3/0. B. City Council Work Session Minutes of August 8, 2016 Zerby moved, Woodruff seconded, Approving the City Council Work Session Minutes of August 8, 2016, as presented. Motion passed 310. C. City Council Regular Meeting Minutes of August 8, 2016 Siakel moved, Woodruff seconded, Approving the City Council Regular Meeting Minutes of August 8, 2016, as presented. Motion passed 310. D. City Council Executive Session Minutes of August 16, 2016 Woodruff moved, Zerby seconded, Approving the City Council Executive Session Minutes of August 16, 2016, as presented. Motion passed 310. 3. CONSENT AGENDA Mayor Zerby reviewed the items on the Consent Agenda. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES August 22, 2016 Page 2 of 14 Woodruff moved, Siakel 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 -0639 "A Resolution Electing to Not Waive the Statutory Tort Limits for Liability Insurance." C. Adopting RESOLUTION NO. 16 -064, "A Resolution Selecting the Truth -in- Taxation Hearing Date of December 5, 2016, with a Continuation Date of December 12,2016." Motion passed 310. 4. MATTERS FROM THE FLOOR There were no matters from the floor presented this evening. 5. PUBLIC HEARING A. Vacate Drainage and Utility Easements Applicant: Oppidan Investment Company Location: 23075 State Highway 7 plus 6020 and 6050 Chaska Road Mayor Zerby opened the Public Hearing at 7:05 P.M. Director Nielsen explained that in June 2016 Oppidan Investment Company received final plat approval for its Shorewood Senior Living project. The developer is preparing to finalize the recording of documents. The developer has requested the City to vacate drainage and utility easements that had previously been recorded against the properties located at 23075 State Highway 7 and 6020 and 6050 Chaska Road. The vacation of the easements will precede the recording of the final plat. The vacation is somewhat of a housekeeping matter. Therefore, staff recommends approval of the vacation. Seeing no one present to comment on the case, Mayor Zerby opened and closed the Public Testimony of the Public Hearing at 7:06 P.M. Councilmember Woodruff stated as part of the recording of the final plat new easements will be recorded. Zerby moved, Siakel seconded, Adopting RESOLUTION NO. 16 -065, "A Resolution Vacating Certain Drainage and Utility Easements for the Properties Located at 23075 State Highway 7, 6020 Chaska Road and 6050 Chaska Road." Motion passed 310. Mayor Zerby closed the Public Hearing at 7:07 P.M. 6. REPORTS AND PRESENTATIONS A. Step to it Challenge Trophy Presentation by Anne Nelson, Senior Health Promotion Specialist with Hennepin County Public Health Promotion CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES August 22, 2016 Page 3 of 14 Anne Nelson, Senior Health Promotion Specialist with Hennepin County Public Health Promotion, noted Shorewood won a trophy for its Step to it Challenge offered in May. It is a physical activity challenge. Shorewood won the most active residents award. The Shorewood residents that participated in the Challenge this year averaged the most steps; they averaged over 380,000 steps during the four -week challenge. Their collective total steps were over 8 million. She presented Mayor Zerby with the trophy. There was a round of applause for those residents who participated in the challenge. B. Storm Water Pollution Prevention Program (SWPPP) Presentation by Jesse Carlson, Water Resource Project Manager, WSB & Associates, Inc. Mayor Zerby opened the Storm Water Pollution Prevention Program (SWPPP) Public Information Meeting at 7:09 P.M. Mayor Zerby noted Jesse Carlson is Water Resources Project Manager with WSB & Associates, Inc. Mr. Carlson stated he is present to make a presentation about the progress the City made during 2015 on its SWPPP and to provide an overview of what will be done next with regard to stormwater management. He explained holding a public information meeting about the City's SWPPP is a requirement for obtaining a National Pollutant Discharge Elimination System (NPDES) Municipal Separate Storm Sewer System (MS4) General Permit. The Minnesota Pollution Control Agency (MPCA) administers the MS4 permit. The City's most recent application for its General Permit was adopted by the MPCA in 2014. In that application the City committed to doing a number of things to comply with the new program. The permit will expire in 2018. In the not too distant future the MPCA will start to revise the requirements for the next permit. He noted that this meeting provides the public an opportunity to comment on the SWPPP He then explained the City's SWPPP has six minimum control measures (MCMs). • MCM 1 — Public Education and Outreach • MCM 2 — Public Participation and Involvement • MCM 3 —Illicit Discharge Detection and Elimination • MCM 4 — Construction Site Stormwater Runoff Control • MCM 5 — Post - Construction Stormwater Management • MCM 6 — Pollution Prevention and Good Housekeeping for Municipal Operations He reviewed the progress the City had made in 2015 to satisfy the MS4 Permit. Public education/Outreach • City website — it contains a lot of information about stormwater related activities. • City newsletter — a number of articles were published about stormwater related information. • Social Media (Facebook, Twitter, etc.) — there has been an attempt to incorporate social media more to keep residents informed. • Resident guide — it contains information about what residents can do with things such as lawns and landscaping. • Recycling • Spring Garden Fair — that provides a great opportunity to encourage people to plant native plants. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES August 22, 2016 Page 4 of 14 • Construction site inspections — the Building Inspector is busy with them. • Plan Reviews — a number of plan reviews were done in 2015 with those for the MCC development being the biggest. Staff relies on its partnership with the Minnehaha Creek Watershed District (MCWD) when it does the reviews. The MCWD's requirements are integrated with the City's requirements. • Stormwater system inspections — the goal is to inspect stormwater ponds in the fall of 2016 and assess what issues there may be with them. • Street sweeping — it is estimated that the City removes 57 pounds of phosphorus annually. Mr. Carlson highlighted some things the City needs to undertake per its current MS4 General Permit. ➢ MCM 1 — Public Education and Outreach • Prioritize education activities within the City of Shorewood — focus on areas without stormwater treatment, assess areas with curb and gutter where there is not treatment and assess areas discharging to water bodies (e.g.; Lake Virginia) that have degraded water quality. • Educate the public and commercial businesses on illicit discharge detection and elimination (IDDE) with handouts, surveys, newsletters, social media, etc. • Partnerships — there was a meeting recently with the watershed districts about improving outreach to residents specific to stormwater management education. There was discussion about tailoring the message to residents • Document specific MCM 1 information. ➢ MCM 2 — Public Participation and Involvement • Provide public notice of the annual public information meeting (this meeting) to provide the public an opportunity to comment on or present issues with the City's SWPPP. • Document specific MCM 2 information. ➢ MCM 3 — Illicit Discharge Detection and Elimination • Adopt draft ordinance revisions which include definitions, right of entry, exemptions and enforcement. Ordinances are enforced administratively. • Completed training of all field staff in recognition of illicit discharges in 2015. • Look for illicit discharges when doing inspections; doing that is key to the Program. • Document specific MCM 3 information. ➢ MCM 4 — Construction Site Stormwater Runoff Control • Adopt draft ordinance revisions to comply with the new permit coverage for MCM 4. The ordinances must be at least as restrictive as the MPCA construction general permit so that will be referenced in the ordinances. The MPCA has asked that the City add language to clarify who is responsible for enforcing the watershed district requirements. The MCWD recently sent out information regarding its updates to its Comprehensive Plan and was seeking input from member communities about water resource related issues for each community. The key thing is projects specific to water quality. If the City gets its projects included in the MCWD's capital improvement plan (CIP) it would be in a better position to get grant funding from state agencies. • Conduct plan reviews and inspections for all site one acre in size or greater. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES August 22, 2016 Page 5 of 14 ■ Document specific MCM 4 information. ➢ MCM 5 — Post - Construction Stormwater Management • Adopt draft ordinances to comply with the new permit coverage. ❖ New development with no net increase in volume, TSS (total suspended solids) and TP (total phosphorous) from pre - project conditions. ❖ Redevelopment with net reduction of volume, TSS, and TP from pre - project conditions. ❖ Watershed district standards must be taken into consideration. Watershed district standards already include water reduction standards which the City uses. Staff considers that as part of plan reviews. • Long -term maintenance — develop post construction regulatory mechanisms to allow Shorewood to conduct inspections, perform maintenance, and assess costs to maintain structural stormwater BMPs constructed after the permit is in effect. It is critical to identify who is responsible for the long -term maintenance of the BMPs. The City has to ensure BMPS for private sites are maintained by those owners long -term. • Document specific MCM 5 information. ➢ MCM 6 — Pollution Prevention and Good Housekeeping for Municipal Operations • The Storm Water Asset Management Program (SWAMP) is a system designed to help prioritize pond inspections and management activities. Prioritization is basically based on age and a loading rate. The inspections would be for those with a higher sediment level. • Complete inspections for: structural stormwater BMPs (annually); outfalls (once per 5 year permit term); ponds (once per 5 year permit term); and, stockpiles and material handling areas (quarterly). All outfalls and ponds need to be inspected by the end of 2017 when the Permit expires. • Conduct the annual stormwater management training. That was done last year and should be conducted again around March 2017 when staff is not as busy as it is in the fall. • Document specific MCM 6 information. He explained Lake Virginia is the City's only impaired waterbody. It has an approved TMDL. The City's required phosphorus reduction is 27 pounds per year. It's estimated the City is achieving a 41 pounds per year reduction into the Lake through street sweeping. The City should consider what it can do improve the quality of Lake Virginia. He stated the City recently submitted a grant application to the Minnesota Board of Water and Soil Resources (BWSR) to help fund improvements to the Shorewood Lane ravine. Those improvements are included in the 2017 Stormwater Management CIP. As part of that staff also reviewed what can be done to provide some upstream storage for Badger Park. That would help with managing the stormwater flow out of that area and hopefully reduce the flow into the ravine. The MCWD and the Riley Purgatory Bluff Creek Watershed District (RPBLWD) also provide grant opportunities available to help offset costs for public improvement projects. He highlighted next steps. ➢ Provide education for high performance areas. ➢ Continue to enhance its partnerships with watershed districts. ➢ Adopt the revised ordinances. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES August 22, 2016 Page 6 of 14 ➢ Continue to conduct staff training. ➢ Continually perform inspections for illicit discharges, construction sites, and post - construction sites. ➢ Complete stormwater system inspections and maintenance. Mr. Carlson offered to entertain questions. Mayor Zerby opened the Public Testimony portion of the Public Information Meeting at 7:24 P.M. Dorothy Pederson, 6155 Ridge Road, noted her property fronts Silver Lake. She also noted she is the Chair of the Citizens Advisory Committee for the Riley Purgatory Bluff Creek Watershed District ( RPBCWD), she is a master water steward and she has owned a landscape company for about the last 20 years. She stated she has gotten involved because she has watched what has happened to Silver Lake. She noted that she does not think there is much communication going on between the City's engineering staff and RPBCWD representatives. She explained there have been a couple of major studies done and the recent conclusions are Silver Lake is again way over on the amount of phosphorous it should have. A paleontology study was conducted of the Lake; a study of a lake prior to civilization to the present. The amount of sediment in the Lake is extremely high and it continues to be high. She provided copies of some of the slides from the research. She encouraged the City's engineer to incorporate it into the City's stormwater management plan. She stated she read all of the material Mr. Carlson provided to her; it was from 2008. The contact person on the material has not been with the RPBCWD has not been there for four years. That is how far behind things are in the stormwater management plan. She explained that after having an engineer assess Ridge Road the engineer determined there are several sites along the roadway where there is some significant erosion. Because there are such high levels of sedimentation and a high level of phosphorus in the Lake an effort was made to set some money aside in 2017 to address some of the issues. She expressed concern about the lack of communication going or between organizations about that. She noted that she has a map prepared by Barr Engineering, the engineering company for the RPBCWD, which shows where some of the sites are. She also has the sediment accumulation rates. She also has information showing that the water quality in the Lake has improved somewhat but it is still significantly over what the MPCA allows. She stated based on what is included in the stormwater management plan the MCWD has a significant impact on what is in the plan and the RPBCWD has very little. She noted that Silver Lake was not mentioned as one of the lakes where stormwater accumulates. There is a section about slope erosion control issues and sedimentation issues but only on the houses that are on the top of Christmas Lake. What people don't realize is everything from the top of Christmas Lake drains down into Silver Lake. She volunteered her time to function as a liaison between the City and the RPBCWD to try and ensure that all of the lakes are looked at and not just the lakes located in the MCWD. She noted that Silver Lake is the only lake in the urban area that has wild rice in it. Ms. Pederson offered to entertain questions now or at some future date. Mayor Zerby closed the Public Testimony portion of the Public Information Meeting at 7:28 P.M. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES August 22, 2016 Page 7 of 14 Engineer Hornby stated he suspects that the reason the City's Surface Water Management Plan concentrates more on the MCWD is the RPBCWD was nonfunctioning when that Plan was last updated in 2008. Shorewood relied on the MCWD to apply its rules in the district. He noted the area along Ridge Road is private. There is no public infrastructure other than sanitary sewer in that area. He explained as part of the City's MS4 permit staff can do some inspections and then the City can require the Homeowners Association to make the necessary corrections because it is the HOA's responsibility to do that. Mr. Carlson noted the City's Surface Water Management Plan it nearing the end of its life cycle. The Plan is a 10 -year plan. He stated when the City starts working on its update to its Comp Plan in the near future a component of that would be to update the Surface Water Management Plan. That would be the opportune time to assess erosion issues in that area and what can be done about them. Staff will at that time work with the watershed districts and the interested residents. Mayor Zerby concurred with Ms. Pederson that all lakes in the City should be certified by staff and the City's engineering firm. He expressed his desire for the City to work with Ms. Pederson on being the liaison to the RPBCWD. If that is a possibility he asked staff to bring that back to Council for consideration. Councilmember Siakel stated in the past the City has asked for residents to volunteer to serve as a liaison to the RPBCWD. If Ms. Pederson wants to be that liaison she thought Council could make that happen. Council usually interviews residents who want to service as commissioners and liaisons. She encouraged Ms. Pederson to reach out to Administrator Joynes. There are major water issues around lakes in the City so Silver Lake has to be considered as part of a greater thing. Mr. Carlson noted he was encouraged by the meeting in August hosted by MCWD, RPBCWD and Nine Mile Creek Watershed District representatives. The Districts are discussing how they can pool their resources at least on the educational side. Ms. Pederson stated there is a process going on to form a Silver Lake HOA. Councilmember Woodruff stated it is his understanding that the SWPPP has to be updated by the end of 2017. Mr. Carlson confirmed that. He then stated that about six to eight years ago the RPBCWD was very focused on everything other than the part of it that is located in Shorewood. He explained he had attended a couple of meetings of the RPBCWD Board and that was very apparent to him. He thought that was the case until about the last year or so. Even to the point that questions about Silver Lake were ignored or rebuffed by the RPBCWD. He noted he thought the RPBCWD needs to indicate that it wants to become involved with Silver Lake. He stated it is his recollection that staff had difficulty getting the RPBCWD to become involved when there were problems with the weir in that area; it ultimately did become involved. Councilmember Siakel stated the MCWD is looking for partnerships and opportunities to collaborate with its neighbors. She noted that she and Councilmember Labadie attended the meeting of the three Watershed Districts. Mayor Zerby closed the Public Information Meeting at 8:35 P.M. 7. PARKS CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES August 22, 2016 Page 8 of 14 8. PLANNING A. Setback Variance to Build on Substandard Lot and Impervious Surface Variance Applicant: Bill Keegan Location: 25830 Birch Bluff Road Director Nielsen explained William and Melanie Keegan own the property located at 25830 Birch Bluff Road. The Keegans propose to demolish the existing home on the lot and replace it with a new one that complies better with zoning requirements. Their proposal requires three variances: a setback variance for the side yard setback; a variance to build on a substandard lot; and, an impervious surface variance. The property has 20,995 square feet of area; a standard area for the R -1C /S, Single - Family Residential /Shoreland zoning district it is located in. The lot is only 60 feet wide making it nonconforming with the width requirement. The current home is nonconforming with respect to side yard setbacks and the amount of impervious surface. The house is only 4.7 feet from the westerly lot line and 14 feet from the east lot line. The new home would have 10 foot side yard setbacks on both sides. The required side yard setback is a total of 30 feet with no one side being less than 10. The Code allows a maximum impervious surface of 25 percent; the property is currently at 34.4 percent. The proposal for the new house would reduce the impervious surface to 30 percent. Per the Code, a lot must meet at least 70 percent of the width and area requirements for the zoning district in which it is located to be considered buildable. This lot does not meet the 70 percent width requirement. Therefore, the applicants are requesting a variance for that. The staff report for this item dated July 28, 2016, recommended the building be pulled back a little so that it would be behind the average setback of the houses on the two adjoining properties. After the August 2, 2016, Planning Commission meeting when the public hearing on this was held it was determined that the applicants' surveyor used an old aerial or something to show the location of the house to the west. That house had been rebuilt and currently is located about 20 feet forward from what is shown on the survey. He displayed a photograph showing that. The applicants' proposal is to locate their new house about 10 feet back from the forward edge of the westerly house. Nielsen noted the Planning Commission unanimously recommended granting the variances subject to the hardcover never exceeding 30 percent should they want to have a deck or patio. Melanie Keegan 25830 Birch Bluff Road, thanked staff and the Planning Commission for its time and cooperation. She noted her husband has been involved with the details of their proposal. Councilmember Woodruff noted the hardcover variance request bothers him. He stated that just prior to this item on the agenda Council heard a presentation about the City's Storm Water Pollution Prevention Program (SWPPP) which deals with stormwater management and control of runoff. He questioned the appropriateness of granting a variance to exceed the 25 percent hardcover requirement by 5 percent. He asked if there is a way to reduce the proposed hardcover by about 1,000 square feet. Director Nielsen stated he does not think it would be possible to reduce the hardcover by 1,000 square feet. Director Nielsen explained that during review of the requests there was discussion about the small shed and the small driveway turnaround. Because the lot is deep it is prudent to provide the turnaround so CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES August 22, 2016 Page 9 of 14 people can drive on the long driveway out to the street rather than back out on the driveway. The house was positioned so the new house would not be set back a long way from the houses on the two adjoining properties. That requires a long driveway thereby increasing the hardcover. It may be possible to reduce the size of the turnaround by making it a single rather double turnout which could reduce the hardcover by 300 — 400 square feet. Another 100 feet could be eliminated by dealing with the shed. Councilmember Woodruff asked what the hardcover percentage is for the adjoining larger lot on the east. Director Nielsen stated he was certain that the hardcover on the adjoining property to the west was at or near 25 percent. He was unsure about the hardcover on the property to the west. Woodruff stated the reason for his question related to possibly borrowing hardcover from an adjoining property. He expressed concern about granting a variance to exceed the maximum hardcover requirement for a shoreline property. Councilmember Siakel noted she lives along Birch Bluff Road and she knows the property. She explained that all of the driveways in that area are long. She does not think the proposed hardcover would be problematic. She stated that the applicants' proposal would be an improvement over what is currently there. She thought it was reasonable. She also thought what has been proposed would fit in with the character of the neighborhood. Mayor Zerby stated there are challenges in parts of the City to get houses to fit on certain lots. What has been proposed is not inconsistent with what has been done before. He noted he agreed with the Planning Commission's recommendation. He stated he thought what is being proposed is a good use of the land. He noted the applicants have not proposed to build a large house; it would be a modest house. Director Nielsen noted that at least one -half of the lot drains away from the lake; it drains toward the street. That is mentioned in the shoreland management regulations. Zerby moved, Siakel seconded, Adopting RESOLUTION NO. 16 -0669 "A Resolution Granting Setback and Hardcover Variances and a Variance to Build on a Substandard Lot for William and Melanie Keegan, 25830 Birch Bluff Road." Motion passed 3/0. B. Conditional Use Permit for Six -Foot Fence in Front Yard Setback Applicant: Rachel and Derek Dahlen Location: 26000 Shorewood Oaks Drive Director Nielsen explained Rachel and Derek Dahlen, 26000 Shorewood Oaks Drive, have requested a conditional use permit (C.U.P.) to construct a six -foot high, alternating board on board (shadowbox) fence across part of the front of their property. The property is zoned R -1C, Single - Family Residential and contains 22,739 square feet of area. Although their home orients to Shorewood Oaks Drive, the front of the lot is technically State Highway 7 (for corner lots, the narrowest frontage on the street is the front). Highway 7 is an arterial street. The Code allows fences fronting an arterial street to be up to six feet high. The proposed fence would be located across the Highway 7 portion of the applicants' property. It would be approximately 120 feet long and located 12 to 15 feet back from the right -of -way (ROW) of Highway 7. The Code requires it to be at least eight feet back from the property line or public ROW. The eight feet is intended to make use of landscaping to soften the view of the fence. The applicants propose to leave the existing vegetation in that area; there is a lot of it. Nielsen noted the Planning Commission unanimously recommended granting the C.U.P. with the stipulation that the C.U.P. is valid as long as the long as the vegetation on the Highway 7 is maintained. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES August 22, 2016 Page 10 of 14 Woodruff moved, Siakel seconded, Adopting RESOLUTION NO. 16 -067, "A Resolution Granting a Conditional Use Permit for a Six -Foot Fence in Front Yard for Rachel and Derek Dahlen, 26000 Shorewood Oaks Drive." Motion passed 310. 9. ENGINEERING/PUBLIC WORKS A. Water Service Agreement (City of Excelsior) for the Metropolitan Council Environmental Services (MCES) Lift Station L -18 Relocation Project Engineer Hornby explained that during its July 25, 2016, meeting Council adopted a resolution granting a conditional use permit (C.U.P.) to Metropolitan Environmental Services (MCES) to relocate and rebuild its lift station L -18 at the northwest corner of P Avenue and Christmas Lake Road. It is bound on the north side by Trunk Highway 7. There had been discussion about extending watermain along 3`d Avenue but that will not be done. The C.U.P. includes a provision for the extension of a water service from the Excelsior water system along the right -of -way (ROW) line within the private property. The facility would have a rest room and it would have water available for cleaning the facility. Staff worked with representatives from Excelsior to develop a water service agreement for the MCES site (a copy of it was included in the meeting packet). Excelsior is agreeable to providing the water service subject to the water connection fee being paid to Excelsior. An Excelsior water meter would be installed and Excelsior would bill MCES for its water service. Woodruff moved, Siakel seconded, Adopting RESOLUTION NO. 16 -068, "A Resolution Entering into a Water Service Expansion Agreement with the City of Excelsior Metropolitan Council Environmental Services L -18 Facility 21445 State Highway 7, Shorewood Minnesota." Motion passed 310. B. Smithtown Road East Sidewalk Extension Project, City Project 14 -10 Resolution Approving Work Order 2 Engineer Hornby explained that based on discussions during the Council executive session on August 5, 2016, a work order was prepared to continue with the construction of the Smithtown Road East Sidewalk Extension Project. There had been some issues with getting water to the curb. Working with the contractor the amount for Work Order 2 is $85,805; the amount is the same as what was discussed during the executive session. The amounts for Work Order 1 and Work Order 2 when combined with the original contract amount bring the increased contract amount to $859,044. Work Orders l and 2 equate to an approximate 11.5 percent increase in the original contract amount. Councilmember Woodruff stated he saw that concrete had been poured and the schedule for the project indicates that the project would be substantially complete on September 2. He then stated if approving Work Order 2 helps achieve that date then he supports approving the Work Order. Woodruff moved, Siakel seconded, Adopting RESOLUTION NO. 16 -0699 "A Resolution Approving Work Order 2 in the amount of $85,805 for the Smithtown Road East Sidewalk Extension Project, City Project 14 -10." Motion passed 310. 10. GENERAL/NEW BUSINESS A. Adoption of the Preliminary 2017 General Fund Operating Budget and Tax Levy CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES August 22, 2016 Page 11 of 14 Mayor Zerby noted Council discussed the preliminary 2017 General Fund Operating Budget and tax levy in a work session immediately preceding this meeting. Director DeJong explained that there have been four work sessions to discuss the preliminary 2017 General Fund Operating Budget and 2016 — 2025 Capital Improvement Program (CIP). Numerous changes were made based on Council feedback. The current preliminary Budget reflects a 2 percent increase in the tax levy. That generates a little more than $100,000 in additional revenue for the General Fund. The revenue from permits and inspections was increased $70,000 in total when compared to the 2016 adopted budget. The Budget reflects a year -end deficit of approximately $73,000. That is based on the City's philosophy of budgeting conservatively so it is likely revenues would exceed budget and expenditures would be under budget. Because of that philosophy it is likely the year would end basically breakeven. He thought the proposed preliminary 2017 Budget is reasonable. DeJong noted that staff recommends Council adopt the preliminary Budget and tax levy. Staff will then certify them with Hennepin County. Mayor Zerby stated that between now and when the final budget is adopted Council has the opportunity to modify the Budget and levy and clarified the tax levy can be decreased but it cannot be increased. Councilmember Woodruff stated the maximum tax of levy of 2 percent is reasonable and agreed with Mayor Zerby that it can be reduced. He then stated that earlier on the agenda Council set December 5 for the Truth in Taxation hearing. During that hearing the public can comment on the proposed final 2017 General Fund Budget. He then stated by certifying the information to Hennepin County in the fall the County can send out preliminary tax levy information. Siakel moved, Woodruff seconded, Adopting RESOLUTION NO. 16 -070, "A Resolution Adopting the Preliminary 2017 General Fund Operating Budget and Tax Levy of 2 Percent" as presented. Motion passed 310. Mayor Zerby asked staff to put a link to the preliminary Budget on the City's website. B. Lake Minnetonka Communications Commission 2017 Budget Administrator Joynes explained that annually the Lake Minnetonka Communications Commission (LMCC) member cities are asked to approve the LMCC budget. The Commission approved the proposed 2017 LMCC Budget during its August 11 meeting along with a $0.75 increase in the PEG (public, educational, and governmental) fee. (A copy of the Budget was included in the meeting packet.) He noted that Council is being asked to adopt the resolution approving the proposed budget. Mayor Zerby explained the LMCC's' revenues come from the PEG fees paid by Mediacom cable television subscribers. It is operated under a joint powers agreement. The 2017 budget is $100,000 less than the approved 2016 budget. He noted that one member city voted against the Budget. Councilmember Woodruff applauded the LMCC for again coming up with a budget that will deliver good services to the community with another reduced budget. He stated a couple of years ago some cities withdrew from the LMCC and that necessitated some major changes in operations. Yet, the LMCC continued to deliver services. Mayor Zerby noted the City of Maple Plain is considering leaving the LMCC. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES August 22, 2016 Page 12 of 14 Councilmember Woodruff stated he has heard that some of the cities who left the LMCC are starting to regret it. Woodruff moved, Zerby Adopting RESOLUTION NO. 16 -0719 "A Resolution Approving the Proposed 2017 Lake Minnetonka Communications Commission Budget" as presented. Motion passed 310. C. Update on Ashland Woods Default This item was removed from the agenda. 11. STAFF AND COUNCIL REPORTS A. Administrator and Staff 1. Trail Schedule Mayor Zerby noted the meeting packet contains a copy of the updated Trail Schedule. Engineer Homby stated on the schedule for the Smithtown Road East Sidewalk Extension the construction substantially complete date was updated to September 2. A ribbon cutting ceremony was added for September 12. Mayor Zerby stated there are still two poles along the Smithtown Road east sidewalk area. He asked for an update on that. Engineer Homby stated he received an email from a Mediacom representative earlier in the day indicating people intended to come to the site on August 24 during the afternoon or evening and have Mediacom services moved by Thursday. That is the last utility on the poles. Zerby noted he was pleased to see people using the sidewalk. Homby stated the day after it was poured people were walking on the sidewalk and the curb. Zerby stated he was pleased to see driveways were restored for the last weekend. Homby stated there is still work to finish the restoration before the September 2 completion date. 2. Monthly Budget Report Mayor Zerby noted the meeting packet contains a copy of the July 2016 Monthly Budget Report. 3. Short Term Rentals Administrator Joynes stated the issue of short-term rentals is starting to increase in part driven by major events such as the Ryder Cup. The City Ordinances regulate that to some extent. There is a situation coming up this week regarding a house that is being used from staff's perspective for some kinds of commercial activities and is listed on VRBO. Director Nielsen noted the Planning Commission is going to discuss a draft ordinance to address short- term rentals during its September 20, 2016, meeting. Mayor Zerby asked if the City's regulations have been communicated to the residents via its newsletters and website. Administrator Joynes responded yes and clarified he was not sure how effective that is. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES August 22, 2016 Page 13 of 14 Other Director Brown explained Public Works personnel finished patching the seal coat roadways last week. Patching started in May and that is done every workday that weather allows that to be done. Crews will be starting to seal coat the roadways in a week or so. Engineer Hornby noted that pavement marking will be done a couple of weeks after the seal coat because the roadways have to be swept. There is an initial sweeping and a second sweeping. Mayor Zerby expressed his desire to have the markings done earlier in the year because it goes down in September and is worn off by February. Hornby explained Xcel Energy was granted a right -of -way utility permit along Echo Road. He thought there was a service issue for some properties located along Echo Road. He responded to inquiries about the flags in the area. Xcel is going to extend the service to a house at the curve in the roadway when travelling east from County Club Road. He does not think Xcel is planning to serve other properties at this time from the front. Owners of properties that are served from the back where there are many trees would also like to be served from the front. Director DeJong stated he is starting to work on insurance renewals Mayor Zerby explained he has received a couple of calls complaining about the contractor for the Minnetonka Country Club (MCC) development working outside of authorized construction hours. He has been working with the police department on how to enforce the hours. Director Nielsen explained that the previous week the contractor's crew worked passed the 7:00 P.M. deadline to deal with a culvert that had been crushed and it started to back up. The crew was pumping water to keep it from going on to surrounding properties and flood basements. Nielsen noted the police did not issue a ticket when they responded; that was the right thing for the police to do. He stated the contractor has been good about keeping the correct hours. Director Nielsen explained there is a construction project along Summit Avenue where the contractor tends to work outside of authorized construction hours. There is a new builder there who claims not to have understood the restrictions on construction hours and no on street parking. During its September 12 meeting Council will be asked to consider a resolution prohibiting on street construction parking along Summit Avenue. Signs will be put up ahead of that date. But, police cannot write a ticket for parking without there being a resolution. Mayor Zerby stated he thought residents would like there to be enforcement by the City for those types of issues rather than just having to call 911. Director Nielsen stated the South Lake Minnetonka Police Department ( SLMPD) has been very helpful. Zerby stated he was at the site when the police were called to the MCC property to deal with issue of the after -hours construction activities and the police did not have a copy of the Shorewood nuisance ordinance. Nielsen clarified the past arrangement with the police is if they do not write a ticket the City would like to receive a copy of the police report. Zerby stated the responding officer stated he could not write a ticket because he did not have a copy of Shorewood's ordinance in the SLMPD's ticket writing system. Nielsen noted the email from the SLMPD Chief of Police had the ordinance in it. Zerby clarified the Chief's email indicated the ordinance was not in their system and that he took a copy off of the City's ordinance. Nielsen noted the help from the SLMPD has improved drastically. Zerby noted he has been in contact with the Chief of Police. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES August 22, 2016 Page 14 of 14 Director DeJong stated he provided information on Public Works wages to resident George Greenfield per his request. He could not find wage rates for 1990 but he did find them for 1991. He provided him with the 1991 and current rates. Administrator Joynes stated Council and staff completed interviews with the semifinalist candidates for the city administrator position on August 16. Councilmember Siakel and Councilmember Sundberg were not present for them so they will view a video recording of the interviews. Clerk Panchyshyn will be in contact to schedule a Council executive session to discuss how to move forward. Joynes stated staff has received a draft form of the salary survey that the City contracted for this summer. He is going to make a presentation on that during September. The survey to a large extent confirmed the City's current structure. Attorney Keane stated he is working with Director Nielsen on a number of code enforcement matters. B. Mayor and City Council Councilmember Woodruff mentioned that he received a call from a resident living in Chanhassen about the construction issue along on Summit Avenue and he went out to the site on August 18. He noted he supports the no construction parking restriction on the roadway based on what he saw. 12. ADJOURN Woodruff moved, Siakel seconded, Adjourning the City Council Regular Meeting of August 22, 2016, at 8:13 P.M. Motion passed 310. RESPECTFULLY SUBMITTED, Christine Freeman, Recorder ATTEST: Wit � E� J'Van Panchyshyn, C#y Clerk .r -•