Loading...
01-09-17 CC Reg Mtg MinutesCITY OF SHOREWOOD CITY COUNCIL REGULAR MEETING MONDAY, JANUARY 9, 2017 f 1111,6110 Y_1►[.� 1. CONVENE CITY COUNCIL REGULAR MEETING Mayor Zerby called the meeting to order at 7:00 P.M. A. Oath of Office and Seating of the Council 5755 COUNTRY CLUB ROAD COUNCIL CHAMBERS 7:00 P.M. Administrator Lerud administered the Oath of Office to newly elected Mayor Scott Zerby, Councilmember Patrick Johnson and Councilmember Kristine Sundberg. A. Roll Call Present. Mayor Zerby; Councilmembers Johnson, Labadie, Siakel, and Sundberg; Attorney Keane (arrived at 7:16 P.M.); City Administrator Lerud; City Clerk Panchyshyn; Finance Director DeJong; Planning Director Nielsen; Director of Public Works Brown; and, City Engineer Hornby Absent: None. B. Review Agenda Sundberg moved, Labadie seconded, approving the agenda as presented. Motion passed 510. 2. APPROVAL OF MINUTES A. City Council Regular Meeting Minutes of December 12, 2016 Siakel moved, Sundberg seconded, Approving the City Council Regular Meeting Minutes of December 12, 2016, as presented. Motion passed 4/0/1 with Johnson abstaining due to his absence at the meeting. °1 Mayor Zerby reviewed the items on the Consent Agenda. Sundberg 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. 17 -001, "A Resolution Setting the 2017 City Council Regular Meeting Schedule for the City of Shorewood." C. Reaffirm Travel Policy for Elected Officials CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES January 9, 2017 Page 2 of 13 D. Accept Donation for Arctic Fever E. Adopting RESOLUTION NO. 17 -002, "A Resolution Confirming Approval of the Residential Recycling Grant Agreement with Hennepin County Contract No. A166425 for 2017 — 2020." F. Authorize the Transfer of Funds for Acquisition of Southshore Center G. Adopting RESOLUTION NO. 17 -003, "A Resolution Ordering Preparation of Feasibility Report for the Riviera Lane and Shorewood Lane Street and Utility Improvement Project, City Proje3ct 17 -04." Councilmember Sundberg asked if the other four owners of the Southshore Center have to accept the total amount of $311,000 for the purchase of their combined interests in the Center. Administrator Lerud clarified that amount was fixed in the court order. Motion passed 510. 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 9. ENGINEERING/PUBLIC rr W- f GENERAL/NEW A. Making Appointments to Certain Offices and Positions within the City of Shorewood for 2017 Zerby moved, Labadie seconded, adopting RESOLUTION NO. 17 -004, "Making Appointments to Certain Offices and Positions within the City of Shorewood for the Year 2017." 1. The following persons are appointed to the following offices and positions: a) Acting Mayor: Debbie Siakel Council Representatives to: b) Park Commission Liaison: January — June 2017: Jennifer Labadie July — December 2017: Debbie Siakel C) Planning Commission Liaison: CITY OF SHOREWOOD REGULAR COUNCIL MEETING :MINUTES January 9, 2017 Page 3 of 13 January — June 2015: Kristine Sundberg July — December 2015: Patrick Johnson d) Metro Cities (AMM) and League of Minnesota Cities (LMC): Kristine Sundberg e) Alternate Metro Cities (AMM & LMC): City Administrator f) Lake Minnetonka Communications Commission: Scott Zerby g) Alternate Lake Minnetonka Communications Commission: Patrick Johnson h) Minnetonka Family Collaborative Council: Jennifer Labadie i) Coordinating Committee South Lake Minnetonka Police Department: Mayor j) Alternate to Mayor on Coordinating Committee South Lake Minnetonka Police Department: Jennifer Labadie k) Excelsior Fire District Board Member: Kristine Sundberg 1) Alternate Excelsior Fire District Board Member: Debbie Siakel m) Investment Committee: None n) Personnel Committee: Debbie Siakel and Kristine Sundber o) Weed Inspector: Mayor P) Assistant Weed Inspector: Joe Lugowski 2. That the following other appointments are made: a) City Attorney: Timothy J. Keane, Kutak Rock LLP b) City Prosecutor: Ken Potts C) Emergency Preparedness Director: per Police Board Decision 3. Official Depositories: Alerus Bank, 4M Fund & other Depositories as necessary 4. Official Newspaper: Sun Sailor. Notices may also be published in the Laker. 5. That the Blanket Bond (Official Bonds) is approved. That such appointments shall take effect on the date hereof and shall continue for the remainder of the year or until such time as a successor is appointed by the City Council. Motion passed 5/0. B. Annexation/Detachment Agreement for The Waters Senior Living Project Location: 22920 Highway 7 and 723 Water Street Administrator Lerud explained that during its December 12, 2016, meeting Council directed him to hire a public finance advisor to review the Tax Increment Financing (TIF) Plan proposed by the City of Excelsior for The Waters Senior Living's (The Waters) project in Excelsior called The Waters of Excelsior. He hired David Drown with David Drown Associates to do that review. The meeting packet contained a copy of a letter which documents Mr. Drown's perspective. Mr. Drown's comments indicate the development would be very favorable for both Excelsior and Shorewood in the long term. Mr. Drown also indicated there is one area where there might be a possible improvement and that is in the financing of the project. He thought the financing method being proposed would be less efficient than issuing a pay -as- you -go note that would be privately placed with a bank. During a conversation with the financial advisor for Excelsior he learned that Excelsior does not do anything other than pay -as- you -go TIF. What Mr. Drown has proposed is not technically pay -as- you -go, but in all sense and regards it is a pay -as- you -go. He recommended Council approve the Attachment /Detachment Agreement (the Agreement) and adopt the Resolution requesting concurrent detachment from Shorewood and annexation into Excelsior of certain lands, provided Council finds the financing acceptable. By approving both the project can keep moving forward. He clarified that the TIF Plan has not gone through final approval stage; it is still in draft form. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES January 9, 2017 Page 4 of 13 Lerud stated if Council wants to hear more about the financing method proposed he offered to invite Mr. Drown to come before Council on January 23 either during its regular meeting or during a work session to provide more information. Councilmember Labadie asked that Mr. Drown be invited to come to a work session on January 23. Councilmember Siakel noted she thought that would be a good idea. Attorney Keane arrived at 7:16 P.M. Mayor Zerby noted that staff has recommended Council take two actions. The first would be to approve the Agreement as presented. The second is to adopt the Resolution as presented, with the proviso that Council urges strong consideration by the Excelsior City Council of alternative methods to finance the project. He asked how Council wanted to proceed. Jay Jensen, representing The Waters Senior Living, explained The Waters was very interested is getting the most efficient financing possible for its project. The Waters has to put a second mortgage on the property and guarantee the TIF note. To the extent that the term of the TIF note can be shortened to make it more efficient would be in The Waters best interest as well. He respectfully requested Council approve the items and that The Waters representatives show Shorewood staff a financing plan. He noted that the TIF Plan will not be finalized for a while; the hope is to close in June 2017. He stated if Council approves both items tonight The Waters architects can begin to work on drawings for the project the next day. He noted that he asked Administrator Lerud if he could contact Mr. Drown. He then noted that he has worked on financing for about 50 TIF Districts during his career. He also has a lot of experience with pay -as- you -go and city notes. The goal for financing for this project is pay -as- you -go with absolutely no risk to either City, have it be as efficient as it can be and for the shortest term possible. He stated that The Waters representatives prefer not to have to come before the Shorewood Council again. It would continue to work with both staffs on financing. Councilmember Siakel stated she wants to keep the process moving forward and that she wanted the approval to be contingent on the outcome of the discussion with Mr. Drown and approval of Council. Mayor Zerby asked if Council could make the contingency part of the approval of the resolution. Attorney Keane clarified Council has as much discretion on this item as it does on other items. Councilmember Sundberg asked if making the approval contingent would slow the project down. Mr. Jensen clarified that until they have all of the necessary public approvals they cannot start on the plans for the project and noted they do not want to have to come back before Council again. He reiterated The Waters' willingness to work with staff on the financing details. Sundberg noted that she would be comfortable to have The Waters representatives work with staff as a good faith effort. She questioned if slowing the project down is in the public's best interest. Mayor Zerby stated from his vantage point it is ultimately up to the Excelsior Council to decide on the financing method. It is in Excelsior's best interest to get the most efficient financing and he does not think the Excelsior Council would do otherwise. He noted he had spoken with the Excelsior Mayor and the Excelsior City Manager and both are interested in hearing about what Shorewood's suggestions are. He expressed a willingness to hear what Mr. Drown has to say. He stated he was not sure what a contingency of approval should be, noting he questioned what a contingency could be when this was discussed during the December 12 Council meeting. He noted that he would be comfortable approving both the Agreement and adopting the Resolution and having The Waters representatives continue to work with staff on financing methods. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES January 9, 2017 Page 5 of 13 Councilmember Siakel stated that she thought Mr. Drown made a suggestion that would be in Shorewood's best interest. She questioned if Excelsior agrees with that suggestion. Administrator Lerud stated the contingency should be that the financing would be acceptable to Shorewood. He then stated he would share Mr. Drown's letter with Excelsior representatives. He noted that if the Shorewood does not find the financing method to be acceptable after hearing from Mr. Drown on January 23 then the financing the developer proposes would be the last option to pursue. He stated there are only three financing options: Excelsior, Shorewood or the developer. Attorney Keane stated from his perspective the financial consequences as summarized in Mr. Drown's letter are fairly significant. He then stated it is Shorewood's expressed intent for there to be a financing package that achieves the TIF objectives while being the most financially beneficial and expedient for the public. He asked Administrator Lerud if there are any other signoffs required from Shorewood other than those being considered this evening. Lerud responded no. Keane explained that in the resolution of approval Council can request that the financing be acceptable to Shorewood and have faith that Excelsior would abide by that intent. Mayor Zerby stated that in the Agreement it stipulates that Shorewood is a partner with Excelsior in the project and that at the end of the term of the TIF District there will be a 70130 split of property tax proceeds with Shorewood receiving 70 percent. What would be good for Excelsior would also be good for Shorewood and vice versa. He questioned why Shorewood would have a different interest than Excelsior in preparing the financing method that would be a good deal. He stated he expected Excelsior to put a good deal together. Attorney Keane questioned why Shorewood had to come forth with a plan that made more sense than the plan Excelsior endorsed. Councilmember Labadie stated if Excelsior comes up with an alternative financing option she asked if the Shorewood Council would have to approve it. Attorney Keane stated he thought Council was asking Shorewood staff to come up with a financing plan that would be in the best interest of Shorewood. Mayor Zerby reiterated Excelsior representatives have indicated a willingness to hear Shorewood's opinions. He stated he thought Excelsior may question why Shorewood believes it needs to push other financing alternatives. Attorney Keane stated it was Shorewood that asked the questions. He does not think the deal can be negotiated on today's terms and Shorewood called that out after consulting with a highly regarded fiscal agent (Mr. Drown). Mr. Drown indicated that he thought the terms could be negotiated on a much more favorable basis. Mayor Zerby noted that Excelsior used Springsted to prepare this TIF Plan and the Springsted representative is the same one as the Shorewood used to prepare a TIF Plan for a project in Shorewood. Mr. Jensen explained that part of the challenge he had when creating a financing plan for a TIF District was he put the numbers together before he saw the terms of the TIF Agreement that came from another individual who prepares the TIF Agreements. The numbers used were very preliminary. The $100,000 rough estimate for origination costs includes all of the costs of issuance and the legal costs noting The Waters attempts to estimate high. He noted that The Waters is likely more interested in more efficient financing and for a shorter term than Shorewood is because The Waters is guaranteeing it. He again CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES January 9, 2017 Page 6 of 13 requested that the Shorewood Council approve the two actions during this meeting. He stated that The Waters representatives will keep both Administrator Lerud and Attorney Keane abreast of what is going on with the financing and that he will contact Mr. Drown. He noted that The Waters wants to be a good neighbor and a good partner for many years to come. That is how The Waters has acted in the past and is currently acting with Excelsior and Shorewood. Mayor Zerby reiterated that Council is being asked by Administrator Lerud to approve two items; the Agreement and the Resolution. Sundberg moved, Labadie seconded, approving the Attachment /Detachment Agreement between the City of Excelsior and the City of Shorewood as presented. Motion passed 5/0. Councilmember Siakel stated she would be more comfortable if the adoption of the Resolution had a contingency put on it. Attorney Keane asked Mr. Jensen if by Council waiting to adopt the Resolution until January 23 would really slow the project down noting there have been significant approvals already granted. He stated that the decision to move forward with the next phase of documentation is a business decision that The Waters makes. He then stated that the Shorewood Council is struggling with the financing contingency. Mr. Jensen explained The Waters has been working on this project for two years with two cities. The Waters will spend about $700,000 on architectural fees. There have been some surprises along the way; things that did not affect the project but were between the two cities. He and his partners have agreed that until The Waters obtains approval on all of the items they will not move forward with anything else. There has already been $50,000 spent on the project. The approval of the Resolution is the last thing needed that would keep the project moving forward. He noted that but for the TIF The Waters could not do the project. He stated if something unrelated to the project happens between the two cities The Waters would be stuck. He again asked for Council to adopt the Resolution. He noted that he and Attorney Keane have worked on TIF Districts before. He stated the interests of The Waters, Excelsior and Shorewood are all aligned and that people will come up with an efficient financing plan. Councilmember Sundberg stated she cannot think of a reason to think that The Waters and Excelsior would not want to come up with the best financing package possible. If she could then she would likely want a contingency. She expressed her comfort with allowing the project to move forward because of The Waters willingness to work with both Cities to come up with the best financing available. She stated there has been a lot of scrutiny about the project which she thought is needed by the community. She noted she supports adopting the Resolution without there being a contingency attached with a good faith commitment that The Waters will work with both Cities. Councilmember Labadie asked Councilmember Siakel what wording of the contingency would put her at ease. Siakel stated she had not thought about that in depth. Councilmember Johnson stated for Council to be forced to make a decision before taking the recommendation of the financial advisor to take a second look at the financing is difficult for him to dismiss. He then stated the project is unique because it straddles the boundaries of Shorewood and Excelsior; The Waters new that going in. He expressed his support for extending consideration of the Resolution to January 23 to allow Council to be better informed about the financing. Councilmember Labadie stated if action on the Resolution is continued to January 23 she asked what the impact on the project would be of the two -week delay in adopting the Resolution. Mr. Jensen stated it CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES January 9, 2017 Page 7 of 13 would be a two -week delay and noted that he came before Council on December 12 and action was delayed until this meeting. Mr. Jensen reiterated the financing is The Waters risk and would guarantee it. He noted that he has worked with Springsted on TIE for almost 40 years. He stated what Council will learn from any financial advisor about the TIF is to try to get the lowest interest rate possible and to lower the cost of issuance. He reiterated that Excelsior also wants the most efficient financing as possible because it also wants the development as soon as possible. He stated The Waters was very willing to make sure that Shorewood staff is kept informed about the financing. Administrator Lerud asked Mr. Jensen when Excelsior is going to approve the TIF District. Mr. Jensen explained that happens after the annexation is submitted. Mr. Jensen stated the approval of the Resolution is critical for The Waters because that would confirm that both Cities are on board. Councilmember Labadie noted that Shorewood is on board with the project. But, some members of Council would like more comfort. She stated that although certain things may benefit multiple cities there can sometimes be tension about doing them. She then stated there is some hesitancy about the financing method. Mr. Jensen explained the key factor in shortening the length of the TIF District is the inflation rate over the next 15 years (i.e.; what are property taxes going to go up). The interest rate would likely be between 3 percent and 6 percent and that would have some impact. No more will be known about those two key factors in two weeks than is known now. The inflationary rate will not be known for many years to come. He noted that if The Waters got Council's support during this meeting would give it the comfort to move forward with a significant investment in the community. Mayor Zerby read the last paragraph in the letter from Mr. Drown. It stated "Overall, the transaction looks reasonable and beneficial for the City of Shorewood. I would make sure that the final documents do not allow TIF revenues to be used for other projects in Excelsior; and I would certainly investigate other debt options that could pay of the TIF obligations more quickly than the current proposal." He thought that could be part of the proviso for adopting the Resolution. Councilmember Sundberg stated she is comfortable with what Council is being asked to approve. Administrator Lerud stated he had spoken with Mikaela Huot with Springsted. She also indicated that Excelsior will only do pay -as- you -go financing. He thought Ms. Huot needs to make a case to the Excelsior Council. In response to a comment from Councilmember Johnson, Mr. Jensen expressed confidence that two weeks from now Council will not learn anything that will make the Councilmembers more comfortable. The interest rate would not be known because the debt would not be placed until June 2017. And, the inflation rate would not be known for many years. Councilmember Johnson asked if more would be known about Excelsior's perspective about a different financing approach in two weeks. Administrator Lerud stated it depends on how Excelsior responds to Mr. Drown's letter and suggestion. Johnson stated he would like to know what would be acceptable to the Excelsior Council. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES January 9, 2017 Page 8 of 13 Councilmember Siakel asked what pay -as- you -go means. Administrator Lerud explained for a pay -as- you-go note, which The Waters has proposed, The Waters would place the debt and Excelsior would issue a pay -as- you -go TIF note that would pay The Waters who in turn would pay its debt with revenue generated by the increase in value of the property. Lerud then explained that Mr. Drown proposed that Excelsior issue a note (a revenue bond that would be taxable or tax exempt). The note would be privately placed with a bank. It had been Mr. Drown's experience that the interest rate would be better and that the origination fee would be much less. That would result in the property being back on the tax rolls sooner. Mr. Drown had not contacted a banker about that yet. Lerud noted that in reality there would not be much difference except for the structure of it. Mr. Jensen explained each city has a TIF policy that it follows. Excelsior's TIF Policy is only for a pay - as- you -go notes. The more efficient financing structure with a city or economic development authority issuing the note would conflict with Excelsior's TIF Policy. Administrator Lerud stated that Mr. Drown was not willing to have Shorewood blow up the project because of that. Mayor Zerby noted that he was not either. Sundberg moved, Zerby seconded, adopting a Resolution requesting concurrent detachment from Shorewood and annexation into Excelsior of certain lands, with the proviso that The Waters Senior Living works in good faith with staffs from Shorewood and Excelsior on continuing to negotiate the best financing package possible. Councilmember Johnson stated he finds it difficult for him to support that without there being a contingency. Motion failed 2/3 with Johnson, Labadie and Siakel dissenting. Siakel moved, Labadie seconded, continuing the consideration of a Resolution requesting concurrent detachment from Shorewood and annexation into Excelsior of certain lands to Council's January 23, 2017, meeting pending the discussion with David Drown and directing staff to send a copy of Mr. Drown's letter dated December 29, 2016, to the Excelsior. Motion passed 3/2 with Sundberg and Zerby dissenting. C. Regulations for Residency for Convicted Sex Offenders Director Nielsen explained that during the latter part of 2016 South Lake Minnetonka Police Department ( SLMPD) Chief Meehan asked each of the four SLMPD member cities to approve substantially consistent sexual offender and sexual predator ordinances. That was based on a court decision at that time that allowed for the release of those individuals who had previously been restricted in where they could live after having served their prison terms. The City of Greenwood is the only member city to date that has approved such an ordinance. The meeting packet contains a copy of an ordinance drafted in response to Chief Meehan's request. More than 30 cities in the State of Minnesota have approved essentially the same model ordinance as the one proposed for Shorewood. The most significant difference in the ordinances adopted is the spacing distances (which range from 500 feet to 2000 feet from where children might congregate such as schools, churches, daycare facilities, parks, and bus stops) where the predators and offenders could live. Greenwood chose spacing of 1000 feet. The Shorewood draft ordinance reflects the same spacing as Greenwood's. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES January 9, 2017 Page 9 of 13 Nielsen displayed a map showing the differences between 1000 -foot spacing and 2000 -foot spacing from various locations. In response to a question from Councilmember Sundberg, Attorney Keane stated it is directed at child sex offenders and those that have been designated by the State as level III sex offenders. Sundberg asked if the ordinance is attempting to address pedophiles. Attorney Keane stated it would be appropriate for Council to have Chief Meehan address its questions during Council's January 23 meeting. He noted staff worked in consultation with the League of Minnesota Cities (LMC) representatives when drafting the ordinance. He stated there are other public resources available to Council to help educate them. He noted there is no sense of urgency to approve the ordinance. Councilmember Sundberg noted that she has a number of questions she would like to have answered. One of them what constitutes the classification of level III. Attorney Keane stated there are resources to provide to answer that. Sundberg moved, Johnson seconded, continuing the approval of an ordinance restricting the residency of convicted sex offenders to Council's January 23, 2017, meeting provided South Lake Minnetonka Police Department Chief Meehan can be in attendance. Councilmember Labadie stated she thought it important for the SLMPD member cities to implement consistent ordinances to make enforcement easier. She then stated if Chief Meehan has already accepted Greenwood's ordinance then she questions the need to continue this item. However, she would vote in favor of the motion on the table. Councilmember Siakel stated she could support approving the ordinance as presented now. Councilmember Sundberg stated this is a very serious topic. She asked why the distance is 1000 feet and not 2000 feet. Attorney Keane stated that it a policy discussions. Sundberg noted that she wants to understand this topic better. She then stated the internet indicates there are 24 registered sex offenders near the Shorewood zip code clarifying she does not know what near means. Attorney Keane stated the Department of Corrections is seeking placement of offenders. Therefore, implementing an ordinance would be the appropriate thing to do. Director Nielsen stated if Councilmembers have specific questions he asked them to submit them to him in advance so staff and Chief Meehan can be prepared to answer them. Motion passed 510. D. 2017 Fee Schedule Adjustments Director DeJong explained the City commissioned Ehlers to do a stormwater rate study and a sanitary sewer rate study in 2013. At that time Ehlers proposed a 20 percent increase in the stormwater utility fee each year from 2014 through 2018 and a 3 percent increase in the sanitary sewer utility fee for each of those same years. Because the City has not done some of the anticipated enterprise improvement projects the increases have not been implemented as quickly as recommended. Staff recommends the City CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES January 9, 2017 Page 10 of 13 implement the recommended rates for 2016 in 2017 in order to continue to cover the City's costs for those two enterprise operations. That means an average property owner in Shorewood would experience a combined increase of about $6.61 per quarter (or about a 6.7 percent increase overall for those two utility fees). Siakel moved, Labadie seconded, Approving ORDINANCE NO. 536, "An Ordinance Titled `License, Permit, Service Charges and Miscellaneous Fees'." Motion passed 5/0. E. Appeal Zoning Violation Notice Applicant: Erick Galatz on behalf of Doug and Sheila Punke Location: 20695 Radisson Road Director Nielsen noted this item has been resolved. F. Appeal Extension of Deadline to Comply with Notice to Remove Applicant: Kert Koerting Location: 20325 Excelsior Boulevard Director Nielsen explained staff has been working with Kurt Koerting, 20325 Excelsior Boulevard, over the last few months to resolve issues associated with a resident complaint the City received about a number of nuisance items on his property. Mr. Koerting has made remarkable progress in cleaning up his property but he has not met the deadlines the City set. Mr. Koerting has asked for a 30 -day extension to comply with the Notice. He noted staff recommends Council grant the 30 -day extension. If Mr. Koerting fails to comply by February 9, 2017, the matter would be turned over to the City Attorney for further legal action. Kert Koerting, 20325 Excelsior Boulevard, stated he has been making progress on cleaning up his property in spite of numerous setbacks. He noted that the Shorewood Building Official Joe Pazandak came out to his property on January 4, 2017, and Pazandak indicated he thought he was about 92 percent complete with the cleanup effort. He stated there is some subjectivity about what is considered junk. Councilmember Siakel asked Mr. Koerting which of the items listed in the Notice to Remove have not been removed yet. Mr. Koerting explained the Notice listed two identical white Isuzu trucks which are about 30 years old. He does have some place where he can bring one truck to and leave it there. The Notice states one truck exceeds the 12,000 pounds gross weight. That was illegally over plated by someone prior to him owning it; he needs to relicense that truck to 12,000 pounds when the license expires. He has a truck with collector plates on it; that truck is legal for him to have. It is a 1961 Mercedes truck and he wants to find a new permanent home for it. Councilmember Siakel asked if the boat and trailer are still on the property. Mr. Koerting stated yes and noted that the boat is a small boat and it is parked on a trailer that he got for free. The trailer is not in his name. He is in the process of filling out and submitting paperwork that would allow him to get a license for it. Mr. Koerting explained there had been piles of materials; some of them are gone and others he is trying to reduce in size. Some is for firewood. He has acquired other lumber to use in repairing his roof. He had acquired about 150 1 -foot by 8 -foot clear cedar planks from a fence he had taken down for someone. He also acquired red cedar logs in 2016. He needs about 40 posts to replace his fence. He has started to use CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES January 9, 2017 Page 11 of 13 bricks he acquired to do some landscape terracing. He noted that he had too many projects going on. Some of them he will accelerate forward and others he intends on abandoning. Councilmember Labadie asked Mr. Koerting if he thought 30 days would be enough time to remove the remaining nuisance items from his property. Mr. Koerting responded yes and explained he has a privacy fence which will shield some things from public view. Labadie moved, Sundberg seconded, granting Kert Koerting, 20325 Excelsior Boulevard, a 30 -day extension to February 9, 2017, to comply with the Notice to Remove Councilmember Siakel suggested the motion be amended to require that one half of the vehicles be dealt with over the next two weeks and then comply with the remainder of the items on the Notice to Remove by the end of February 2017. Without objection from the maker or the seconded, the motion was amended to grant Kert Koerting, 20325 Excelsior Boulevard, until February 28, 2017, to comply with the Notice to Remove subject to him removing one half of the vehicles in violation by January 23, 2017. Motion passed 510. It A. Administrator and Staff 1. Monthly Budget Report Mayor Zerby noted the meeting packet contains a copy of the November 2016 Monthly Budget Report. Other Director Brown noted that the Arctic Fever event is scheduled for January 12 — 15, 2017. He then noted the City received the replacement traffic feedback sign for Country Club Road southbound. He anticipates it to be mounted and working within the next few days. He explained staff has been working on an issue related to City's rights and property owners' rights at the end of Howards Point Road. The City has maintained that roadway at the end of the point for many years. The property owners are going to rebuild and bring the rights into question. Councilmember Labadie stated Council heard there will not be a snow sculpture competition during the Arctic Fever event this year due to lack of snow. She asked if any other activities have been canceled. Director Brown stated there will not be a sliding hill activity. Engineer Hornby stated toward the end of December 2016 he sent Council a memorandum regarding the Minnetonka Country Club (MCC) project. He then explained the activities along Smithtown Road near the MCC project site was related to undergrounding an Excel Energy utility line. That work is winding down. Director DeJong stated he was working on 2016 year -end activities. In 2017 there are some new requirements that have to be implemented. For example, W2s need to be reported to the federal government by January 31, 2017; the same time they need to be sent out to individuals. That is a month earlier than in past years. He then stated 2016 audit field work will begin on January 10. A representative CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES January 9, 2017 Page 12 of 13 from the City's audit firm will come on site to do some audit work. The goal is to have the audit report presented to Council by the end of May 2017. Director Nielsen stated he and Administrator Lerud will interview applicants to replace him the end of the week. Mayor Zerby stated the links on the City's website for the Oppidan project and the MCC project have not been updated since they were basically created. He asked Director Nielsen to get the information from Engineer Homby and have the website updated. Administrator Lerud stated the bid period for the sale of the Skate Park equipment has closed. The City did not receive any bids. Staff will try and find a home for that equipment. Councilmember Sundberg explained Xcel Energy's Partners in Energy program is kicking off again. Shorewood applied to be part of the program and was accepted. Shorewood is the smallest city participating. She has met the Xcel team and Xcel's consultants. She is very optimistic about the opportunities the City may have. The object of that initiative is to establish a community wide vision for energy. Part of her real interest is to identify opportunities for Shorewood and its residents. The overall group is in the process of recruiting individuals in the community to be members of an advisory group. A CUB Foods manager has indicated he wants to participate. She encouraged interested individuals to contact the Shorewood Communications Coordinator. Mayor Zerby stated a resident asked him if the City has changed its salt /sand mixture because the resident's dog's paws were reacting differently to the mixture. Director Brown explained that for the 201.5/2016 snow season the City did not use much salt as it normally does. The City was obligated to take delivery of 80 percent of the amount of salt it had agreed to purchase. Because there was no place to store it the City had been running pure salt to treat the roadways. Because some of that salt has been used there is room to store it. The City is back to using a salt /sand mixture. H. Mayor and City Council George Greenfield, 24715 Yellowstone Trail, asked what the requirements are to call for public comment on a particular agenda item. Attorney Keane explained the Council regular meeting agenda is published with an open comment period for the public to comment on any items not on an agenda. If there are items that are not public hearings on the agenda that the public wants to comment on they can let the chair of the meeting know that they want to comment on a particular agenda item when that item is discussed. Items on an agenda that are noted for a public hearing part of the hearing will be opened for a public comment period. Mr. Greenfield stated that from his perspective that is not how things are presented. He thought that it has been past practice to allow the public to comment on items that are not public hearings. He explained that during Council's December 12, 2016, meeting the consideration of an Attachment /Detachment Agreement between the Cities of Shorewood and Excelsior was continued to this meeting. That Agreement is needed for The Waters Senior Living's project in Excelsior to move forward. The public was not provided an opportunity to comment on The Waters project during the December 12 meeting nor during this meeting. Mayor Zerby stated he did not pick up any signal from Mr. Greenwood that he wanted an opportunity to comment. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES January 9, 2017 Page 13 of 13 Mr. Greenfield stated he called one member of Council to get information on that but his phone call was not returned. 12. ADJOURN Sundberg moved, Johnson seconded, Adjourning the City Council Regular Meeting of January 9, 2017, at 8:30 P.M. Motion passed 510. RESPECTFULLY SUBMITTED, Christine Freeman, Recorder ATTEST: Je n Panchyshyn, City derk ee Sco, erby, ay