11-28-16 CC Reg Mtg MinCITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD
CITY COUNCIL REGULAR MEETING COUNCIL CHAMBERS
MONDAY, NOVEMBER 28, 2016 7:00 P.M.
MINUTES
1. CONVENE CITY COUNCIL REGULAR MEETING
Mayor Zerby called the meeting to order at 7:00 P.M.
A. Roll Call
Present. Mayor Zerby; Councilmembers Labadie, Siakel, Sundberg, and Woodruff; Attorney
Keane; City Administrator Lerud; City Clerk Panchyshyn; Finance Director DeJong;
Planning Director Nielsen; Director of Public Works Brown; and, City Engineer Homby
Absent: None
B. Review Agenda
Labadie moved, Sundberg seconded, approving the agenda as presented. Motion passed 5/0.
2. APPROVAL OF MINUTES
A. City Council Executive Session Minutes of November 4, 2016
Sundberg moved, Woodruff seconded, Approving the City Council Executive Session Minutes of
November 4, 2016, as presented. Motion passed 5/0.
B. Canvassing Board Minutes of November 14, 2016
Sundberg moved, Woodruff seconded, Approving the Canvassing Board Minutes of November 14,
2016, as presented. Motion passed 510.
C. City Council Work Session Minutes of November 14, 2016
Labadie moved, Sundberg seconded, Approving the City Council Work Session Minutes of
November 14, 2016, as presented. Motion passed 510.
D. City Council Regular Meeting Minutes of November 14, 2016
Woodruff moved, Labadie seconded, Approving the City Council Regular Meeting Minutes of
November 14, 2016, as presented. Motion passed 5/0.
3. CONSENT AGENDA
Mayor Zerby reviewed the items on the Consent Agenda.
Labadie moved, Woodruff seconded, Approving the Motions Contained on the Consent Agenda
and Adopting the Resolution Therein.
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November 28, 2016
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A. Approval of the Verified Claims List
B. Accepting a Donation for Arctic Fever
C. Retirement Recognition for Dan Randall
D. Adopting RESOLUTION NO. 16 -088, "A Resolution Accepting Improvements and
Authorizing Final Payment for the 2016 Mill and Overlay Project, City Project 16-
03."
Councilmember Labadie noted Randy's Sanitation made the donation to the Arctic Fever event.
Motion passed 5/0.
4. MATTERS FROM THE FLOOR
Stephen Fames, 5445 Timber Lane, noted that he wanted to revisit a topic that Council discussed during
its October 24, 2016, meeting. He explained that the topic was a request from Alex Ugorets, 175
Brentwood Avenue, Tonka Bay, for a zoning permit for the incidental use of public right -of -way (ROW)
off Timber Lane to provide a second access to his property. At that time staff recommended a four -foot-
wide walking path and staff and the Planning Commission recommended Council approve that. Mr.
Ugorets came before Council that evening and indicated that he did not want that but he did want a 12-
foot -wide driveway. Mr. Ugorets indicated that he had been told that he could have a driveway for access
to Timber Lane. After discussion Council denied that request on a 510 vote.
He noted that he had assumed that when Mr. Ugorets zoning permit request was denied that his request
for a driveway was defeated. He explained Mr. Ugorets took it upon himself to dump gravel in a 120-
square -foot area that borders the Timber Lane cul -de -sac to his property. The gravel is about eight inches
deep. He and other residents in the neighborhood would like the gravel removed. He had spoken with
Director Nielsen about that. Nielsen was not convinced that was the direction Council wanted to go on
that matter. Mr. Ugorets had not obtained a permit to do that and Mr. Fames did not think Mr. Ugorets
had any authority to do that.
Mr. Fames stated he thought it would be appropriate for the City to be aggressive on this and to send a
message to Mr. Ugorets. He stated there are still a few weeks before the ground freezes. He noted he
understood Council cannot make a decision on that this evening. But, maybe Council can provide staff
with direction on this matter.
Councilmember Woodruff extended his apology for not returning Mr. Fames phone call to him and stated
he had not been able to get any information for him until he got to City Hall for this meeting. He
explained that during the October 24 meeting Council denied the driveway access over the public ROW.
He had spoken with Director Nielsen about this before the meeting and Nielsen told him that he was
ready to ask Public Works personnel to remove the gravel but decided not to, per the advice of Attorney
Keane, because Mr. Ugorets intended to file a suit against the City. He asked Attorney Keane to explain
his position.
Attorney Keane stated Mr. Ugorets attorney had advised him that Mr. Ugorets intended to apply for a
revised permit request. He explained that he would like staff to determine if the location of gravel is
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November 28, 2016
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located on the public ROW or on private property. The location
of next steps.
Councilmember Woodruff asked if that discussion can happen
Attorney Keane responded yes.
Woodruff stated that after looking at the site he thought the
was not a surveyor.
Attorney Keane noted that it will be easier for the City to
public ROW.
guide the recommendation in terms
week and a recommendation made.
is on the public ROW noting that he
remediation if the gravel is on the
Mayor Zerby stated it was his understanding that there was to be no improvement and that there had been
a path there for years. He was not comfortable with Mr. Ugorets making any improvement to what was
already there. He considered the gravel was a more significant improvement to the property than he
anticipated. Councilmember Sundberg concurred.
Councilmember Siakel noted that Council clearly denied the
Councilmember Labadie stated Council unanimously voted to
Attorney Keane stated if the gravel is within City ROW the
further guidance or direction from Council. But, if it is on p
obtain an order to go on to Mr. Ugorets property.
Mayor Zerby thanked Mr. Fames for bringing the concern to
5. PUBLIC HEARING
A. Ratify Flood Plain Ordinance
Mayor Zerby opened the Public Hearing at 7:09 P.M.
Director Nielsen explained that during its October 24, 2016,
amending the Shorewood City code to replace the existing
Chapter 1101 (Flood Plain Management Regulations). The lV
(DNR) has since advised the City that the amendment ma
hearing. Staff is recommending Council ratify the previously
that back to the DNR as a precautionary measure. He
recommended. Council hold a public hearing on this.
Seeing no one present to comment on the case, Mayor Zerby
the Public Hearing at 7:11 P.M.
Woodruff moved, Sundberg seconded, ratifying the apps
2016, which amended the Shorewood City Code to replace
a revised Chapter 1101 (Flood Plain Management Red
Minnesota Department of Natural Resources know of Con
Mayor Zerby closed the Public Hearing at 7:12 P.M.
permit request.
the permit request.
ral of it could be done without any
property the City may be a need to
's attention.
sting Council approved Ordinance 534
iter 1101 in its entirety with a revised
;sota Department of Natural Resources
should have been subject to a public
)ted ordinance amendment and forward
d that Attorney Keane had strongly
and closed the Public Testimony of
of Ordinance No. 534 on October 24,
sting Chapter 1101 in its entirety with
tions) and directing staff to let the
's action. Motion passed 510.
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November 28, 2016
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6. REPORTS AND PRESENTATIONS
7. PARKS
A. Report by Ed Rock on the November 22, 2016, Park Commission Meeting
Park Commissioner Rock reported on matters considered and actions taken during the November 22,
2016, Park Commission meeting (as detailed in the minutes of that meeting).
8. PLANNING
A. Zoning Code Amendment — Short -Term Rentals
Director Nielsen explained that during its September 26, 2016, meeting Council adopted a resolution
amending City Code Chapter 1004 (Rental Housing) regarding short-term rental of property. It basically
prohibits rentals for less than 30 days. The Zoning Code text amendment being considered this evening is
a follow -up to that amendment. It makes the definitions between the Rental Housing Code and the Zoning
Code consistent. He noted the Planning Commission held a public hearing on the amendment during its
November 1, 2016, meeting and unanimously recommended approval of the amendment.
Sundberg moved, Labadie seconded, Approving ORDINANCE NO. 535 "An Ordinance Amending
the Shorewood Zoning Code as it Pertains to Short -Term Rentals." Motion passed 510.
B. Annexation Agreement and Comprehensive Plan Amendment for the Waters Senior
Living Project
Applicant: The Waters Senior Living
Location: 22920 Highway 7 and 723 Water Street
Administrator Lerud explained that staffs from the Cities of Shorewood and Excelsior have been working
on an Annexation- Detachment Agreement (the Agreement) that detaches parcels of land from Shorewood
and annex them into Excelsior. Almost all of the terms of the Agreement have been successfully
negotiated. The remaining item to be negotiated is the split of the tax proceeds that would be generated by
the proposed The Waters of Excelsior senior living development.
Lerud then explained that Shorewood staff has consistently taken the position that the percentage split of
the tax proceeds should be 70/30; that split is based on the amount of land currently located in each City
that would eventually be the site of the proposed development. Each square foot of the land is equal in
value because it is all needed to complete the project. The existing buildings have zero value in terms of
future development; the buildings would not be there. Shorewood's land value is much less in Excelsior.
If Excelsior approves a Tax Increment Financing (TIF) District it would generate more for Excelsior in
terms of tax increment than it otherwise would. If Shorewood detaches the land it would forever give up
the opportunity to develop that property. With a 70/30 split Shorewood would receive 70 percent of the
taxes proceeds generated by the proposed development once the TIF District expires.
Director Nielsen displayed a copy of the site location, architectural renderings of the proposed
development, a property survey which shows the boundary between the Shorewood portion and the
Excelsior portion, and a site plan.
Nielsen noted the Planning Commission held a public hearing during its November 1, 2016, meeting on
the proposed amendment to the Comprehensive (Comp) Plan. The Commission recommended approval
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November 28, 2016
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of the amendment to reflect the change in the Shorewood boundary for the 22920 State Highway 7 and
723 Water Street properties subject to the execution of the Agreement between the Cities of Shorewood
and Excelsior.
Attorney Keane recommended Council take this up as two separate items; one item for the Comp Plan
amendment and the second for approval or denial .of the Agreement.
Councilmember Woodruff asked which pages in the in the meeting packet information for this item are
for the Comp Plan amendment. Director Nielsen explained it starts with the memorandum from him to the
Planning Commission, Mayor and City Council dated October 28, 2016. Woodruff clarified he was
looking for amendment text. Nielsen clarified there would not be any text; the amendment is a map
amendment. The boundaries of Shorewood would change upon approval of the amendment. Nielsen
noted that the actual approval of the amendment will come back to Council because the amendment is
subject to the review of the Metropolitan (Met) Council. In response to a comment from Mayor Zerby,
Nielsen explained there will be a cover letter to the Met Council describing the rationale for changing the
boundaries of Shorewood and the City needs to fill out a form.
Woodruff then asked if Council needs to adopt a resolution. He noted the meeting does not contain a copy
of a resolution for Council's consideration. Director Nielsen clarified that once the City receives approval
from the Met Council then Council will be asked to approve a resolution amending the Comp Plan.
Director Nielsen clarified that Council is being asked to direct staff to send the proposed map amendment
to the Met Council for its review. Attorney Keane stated it would go through Met Council's abbreviated
minor plan amendment process which is 30 days.
Attorney Keane reiterated the map amendment will be submitted to the Met Council for review and after
that Council will consider the formal approval of the amendment by way of adoption of a resolution.
Mayor Zerby stated from his perspective he does not think there is a need to change the Shorewood
boundaries unless there is a reason. He noted he was not ready to support the detachment of parcels of
land with there being some rationale for doing so. Director Nielsen reiterated Council would not be doing
that until the Met Council has reviewed the map amendment. Zerby stated the only reason he would be
willing to detach the parcels would be to put The Waters of Excelsior development in that location.
Attorney Keane stated that the draft Agreement Item 3.H Completion of the Project does address Mayor
Zerby's concern. It basically states the Comp Plan amendment and the Agreement are conditioned upon
the completion of the project.
Councilmember Woodruff stated approving the Comp Plan amendment does not obligate the City to
execute the Agreement.
Mayor Zerby asked who drafted the Agreement. Attorney Keane noted it was a joint effort.
Woodruff moved, Sundberg seconded, directing staff to submit the proposed Comprehensive Plan
map amendment to the Metropolitan Council for its review. Motion passed 510.
Mayor Zerby stated he thought that the 70/30 split of the tax proceeds was important because Shorewood
would be donating a significant portion of the land for the senior living development site. The Shorewood
land would have other significant uses if the development did not come to fruition. He noted that he wants
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November 28, 2016
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to stay with the 70/30 split. Councilmembers Labadie, Siakel and Siakel noted they would support that.
Councilmember Woodruff stated he did not disagree with that.
Councilmember Woodruff stated if the senior living project is never completed he asked if Shorewood
would still get reimbursed for up to $10,000 in administrative. Attorney Keane stated it is a risk.
Zerby moved, Siakel seconded, continuing the consideration of the Annexation- Detachment
Agreement until there is agreement that the split of the tax proceeds is 70/30 (with Shorewood
getting 70) after the tax increment financing district expires.
Councilmember Woodruff stated he thought the Agreement does stipulate for a 70/30 split. He questioned
why Council would want to delay taking action on the Agreement. Attorney Keane stated that the
Agreement does stipulate a 70/30 percent split. But, he is not sure that both Cities agree with that. Mayor
Zerby stated it is his understanding that the copy of the Agreement included in the meeting packet is a
draft. That Agreement has not been approved by the Excelsior Council. But, during its recent work
session the Excelsior Council made comments about a 60/40 split.
Jay Jenson, representing The Waters Senior Living (the applicant), noted he was present at the Excelsior
Council work session on November 21. He stated Excelsior is waiting for the Hennepin County Assessor
to determine values. He thought the assessor should be out in the next day or two. He does not think
Excelsior is specifically locked on to a 60/40 split. Excelsior has the Agreement as an action item on its
December 5 meeting agenda. From his perspective if the Assessor believes it should be a 70/30 split he
thought the Excelsior Council would go with that. He noted that proposed senior living facility would be
located 70 percent on land currently located in Shorewood.
Mr. Jensen explained that the difference in property tax dollars to a municipality between a 60/40 split
and a 70/30 split is about $7,000 twenty some years from now.
Mr. Jensen stated The Waters Senior Living is very anxious to get started on the project in order to meet a
December 2018 completion date. He noted The Waters Senior Living will commit to paying Shorewood
$10,000 at closing.
Mayor Zerby stated he still wanted to delay taking action on this item because there is not a concrete split
percentage from Excelsior.
Attorney Keane recommended the item be continued to Council's next regular meeting.
Without objection from the maker or seconder, the motion was amended to continue this item to
Council's December 12, 2016, meeting. Motion passed 510.
C. Minor Subdivision
Applicant: William Everett, Jr.
Location: 5615 Covington Road
Director Nielsen explained William Everett owns the property located at 5615 Covington Road. He has
purchased Outlot E, Waterford, immediately east of his property with the intent of combining the two
parcels and re- subdividing them into two building sites. Both of the proposed new lots would meet the lot
size and lot width requirements of the R -lA/S, Single - Family Residential /Shoreland zoning district. The
slope of Outlot E is somewhat dramatic. The survey shows there is an ample buildable area with a gradual
slope on the northeast corner of the site.
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November 28, 2016
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Nielsen noted the Planning Commission and staff recommend approval of the minor
combination subdivision. He also noted the meeting packet contains a copy of a resolution approving the
subdivision.
Woodruff moved, Sundberg seconded Adopting RESOLUTION NO. 16 -089, "A Resolution
Approving Subdivision of Real Property for William Everett, Jr. for his properties located 5615
Coving Road and Outlot E, Waterford." Motion passed 510.
9. ENGINEERING/PUBLIC WORKS
A. Approve Professional Services Agreement for 2017 Mill and Overlay Project
Director Brown explained staff has solicited a proposal from WSB & Associates for professional services
for the preparation of construction documents for the 2017 Mill and Overlay Project, City Project 17 -03.
The roadways to be improved include: Summit Avenue from Murray Hill Road to Hummingbird Road;
Howard Point Road from Smithtown Road to the north terminus; Echo Road from County Road 19 to
County Club Road; Kathleen Court from Woodside to the cul -de -sac; and„ Oak Ridge Circle from Grant
Lorenz Road to the cul -de -sac. The estimated cost of the total project is $27, 393. That amount includes
slightly more than $18,000 is for inspection and survey services. The cost for the design portion is $9,000.
Brown noted that staff recommends Council accept the proposal for professional services from WSB for
the preparation of plans, specifications, bidding, and construction services for the 2017 Mill and Overlay
Project for an estimated cost of $27,393.
Sundberg moved, Siakel seconded, accepting the proposal for professional services from WSB &
Associates to prepare construction documents for the 2017 Mill and Overlay Project, City Project
17 -03 for an estimated amount of $27,393." Motion passed 510.
10. GENERAL/NEW BUSINESS
11. STAFF AND COUNCIL REPORTS
A. Administrator and Staff
1. Public Works Snow Removal Equipment
Director Brown noted the City took delivery of the trail snow removal equipment.
2. Freeman Park Ice Skating Rink Update
Director Nielsen explained that during its November 14, 2016, meeting Council authorized staff to move
forward with the creation of an ice skating rink at Freeman Park for this upcoming skating season if the
total preparation work could be done for an amount not to exceed $40,000. At that time staff thought it
had a contractor that would do the grading and leveling of the area for an amount not to exceed $10,000.
Earlier in the day that contractor informed him he would not be able to do that work and he thought it had
more to do with the conditions than the money. Unless staff can find another contractor very quickly the
project will have to be put off until next spring and maybe Public Works could do that work.
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Other
Director Brown stated Council had approved retrofitting lighting at City Hall and at Public Works facility
with LED lamps. The retrofit at Public Works has been completed and the electrician started the retrofit at
City Hall earlier in the day.
Mayor Zerby asked Director Brown to provide an update on the removal of the equipment at the Skate
Park. Brown noted that this week Public Works personnel finally have time to focus on that. Brown
explained that once Council decided to take that equipment out of service a number of people expressed
interest in purchasing that equipment. Staff has not determined if the City should do, for example, an
online auction or a silent auction to sell the equipment. The equipment may not be removed until it is sold
and then it would be done by the purchaser of the equipment. Zerby asked it if would be possible to put
something in the newsletter saying the City is seeking sealed bids. Brown noted there are issues of
liability that have to be addressed because the equipment would be sold as an as is.
Director DeJong noted that the 2017 Truth -in- Taxation notices had been mailed out and as of today only
one property owner has contacted him. He explained that individual's property tax increase for 2017 is
primarily driven by a 12.7 percent increase in the value of their property. He told the individual that the
City's portion of that tax is only going up 2 percent for 2017. He encouraged the individual to come and
discuss the appraised value of his property during the spring 2017 open book meeting. Councilmember
Woodruff stated that if property owners have issues with the assessed value of their property he
encouraged them to contact the assessor sooner versus later to start a dialogue.
Mayor Zerby stated he had spoken with Acting City Engineer Koscielak during the November 14, 2016,
Council meeting about keeping information about construction projects impacts on traffic up to date on
the City's website. The City's Communications Coordinator had indicated to him that she was waiting on
information. Engineer Homby stated updates have been provided every week to staff until the point when
a project was shutting down. He noted he will research that. Zerby stated the Communications
Coordinator uses a traffic email alert and he has not received an alert since work along Smithtown Road
was complete. Homby clarified that every week an update is put out unless there is no work taking place.
That is posted on the City's website; the Communications Coordinator gets those. Those updates are e-
blasted to those individuals who have signed up to receive them. Administrator Lerud noted that during a
staff meeting there was discussion about notifications regarding impacts on traffic. He stated the City of
Minnetonka is doing a study on how it notifies people. The Communications Coordinator will go to a
meeting in January 2017 to learn about what types of notifications work best.
Director Nielsen stated he has not received a count of how many deer were harvested during the last week
of this year's Deer Management Program. Prior to this last weekend 16 deer had been harvested. He
explained that on November 25 he had received a call from the Metro Bowhunters Resource Base
(MBRB) harvest coordinator who told him that they found a deer stand on one of the sites. That is a
violation. He asked the coordinator to have someone that the stand down, bring it to the Public Works site
and to notify the police.
Mayor Zerby asked if the entrance sign for the Minnetonka Country Club (MCC) development will be lit
up. Director Nielsen explained that there will be flood lights that shine up on to the sign.
B. Mayor and City Council
Councilmember Labadie noted the Kids Free Movie event is scheduled for December 3, 2016. The doors
open at 8:45 A.M. and the movie begins at 9:30 A.M. Santa and Sparky will arrive by fire truck around
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November 28, 2016
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11:00 A.M. The movie will be Minions. This is the 45"' year the Excelsior Fire District Firefighters and
The Excelsior Dock Cinema have worked in partnership on the event. It is the 19"' the ICA Food Shelf
has been a beneficiary. It is the tenth year Excelsior Real Estate has sponsored the movie. Admission is a
nonperishable food item. It is a very popular event so she encouraged people to get there early.
Councilmember Siakel, as a member of the Personnel Committee, requested that a Council executive
session be held either prior to or after Council's December 12, 2016, regular meeting. Councilmember
Woodruff stated as the other member of the Committee he questioned why there is a need for that. Siakel
noted one person can request that an executive session be called.
Mayor Zerby stated there is a meeting of the mayors of the cities in the Minnetonka School District
hosted by the District's Superintendent coming up. He explained that he has been in discussion with some
parents of students who attend Minnetonka High School about improving pedestrian access around the
School. He has involved Director Brown, Director Nielsen and Engineer Hornby through email threads.
12. ADJOURN
Woodruff moved, Labadie seconded, Adjourning the City Council Regular Meeting of November
28, 2016, at 7:51 P.M. Motion passed 5/0.
RESPECTFULLY SUBMITTED,
Christine Freeman, Recorder
ATTEST:
Jean Panchyshyn, Citf Clerk