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01-23-17 CC Reg Mtg MinutesCITY OF SHOREWOOD CITY COUNCIL REGULAR MEETING MONDAY, JANUARY 23, 2017 MINUTES 1. CONVENE CITY COUNCIL REGULAR MEETING 5755 COUNTRY CLUB ROAD COUNCIL CHAMBERS 7:00 P.M. Mayor Zerby called the meeting to order at 7:00 P.M. A. Roll Call Present. Mayor Zerby; Councilmembers Johnson, Siakel, and Sundberg; Attorney Keane; City Administrator Lerud; City Clerk Panchyshyn; Finance Director DeJong; Planning Director Nielsen; Director of Public Works Brown; and, City Engineer Homby Absent: Councilmember Labadie B. Review Agenda Mayor Zerby asked that Item 10.13 be discussed first in order to be respectful of Police Chief Meehan's time. Johnson moved, Siakel seconded, approving the agenda as presented. Motion passed 4/0. B. Regulations for Residency of Convicted Sex Offenders (This is Item IOB on the agenda) South Lake Minnetonka Police Department (SLMPD) Chief Meehan stated he was present to answer questions Council may have about the proposed City Code amendment restricting the residency location of Level III sexual offenders. Mayor Zerby noted that Council discussed the amendment during its January 9, 2017, meeting. During that discussion Councilmember Sundberg indicated she had a number of questions she wanted to have Chief Meehan answer. Director Nielsen noted staff sent out a revised map reflecting what the effect of the 1000 foot radius would be. Mayor Zerby stated it is his understanding that the SLMPD member Cities of Greenwood and Tonka Bay have approved similar amendments to their City Codes. Chief Meehan clarified that Greenwood Council has approved the Greenwood amendment and the Tonka Bay Council is going to consider the Tonka Bay amendment during its January 24 meeting. Councilmember Johnson stated the Deephaven City Council passed a similar amendment. Chief Meehan explained the situation has changed somewhat because on January 3, 2017, the Federal Appeals Court ruled Minnesota's Sex Offender Program (SOP) is constitutional. Until the Minnesota Legislature creates a level playing field he thought it would be better for all of the member cities to have an ordinance. Those communities that do have residency restrictions in place are far less likely to have predatory offenders placed in those communities. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES January 23, 2017 Page 2 of 15 Councilmember Sundberg stated she submitted a list of questions. Chief Meehan stated he has the list with him. Chief Meehan explained there are four levels of predatory sex offenders. Levels I, II and III are what he thought people should be concerned about. Before a sex offender would be released from the SOP they have to go through an assessment done by the Department of Corrections to try and determine what the offender's likelihood of re- offense would be. For a Level 1 predatory offender it would be very low, for Level H would be moderate and for Level III that would be a high risk level of re- offense. There were a number of predatory offenders that were released with no level attached to them because the assessment process had not been implemented yet. They are a nondesignated type of predatory offender; the fourth type. If a Level I predatory offender is released into the community by statute law enforcement can maintain the record and share it with other law enforcement agencies. If a Level II offender is released law enforcement can share that information with other agencies that would have people around that could be likely to be a victim of that offender. Those agencies are most often public and. private schools, day care centers and so forth. If a Level III is released into the community the entire community is notified. Councilmember Sundberg asked if the focus is on pedophiles or is it broader than that. Chief Meehan explained a predatory offender is typically someone convicted in Minnesota of a felony level criminal sexual conduct crime. It does include other specifically designated sex offenses and certain other crimes such as kidnapping, false imprisonment and the like. A conviction in those areas could result in a person being designated as a predatory sexual offender. Councilmember Sundberg stated she thought a lot of the language in the draft ordinance appears to be focused on children. She asked if the intent is to focus on children. Chief Meehan clarified the intent is to protect everyone. Chief Meehan noted there are no Level III predatory offenders living in the SLMPD coverage area at this time. One had moved into the City of Tonka Bay recently. That individual moved out quickly following community notification. Councilmember Sundberg asked why the distance from schools, churches, and bus stops, for example, is 1000 feet rather than 2000 feet. Chief Meehan explained that Greenwood chose the 1000 -foot distance. It was based on what they found in other ordinances around the state that were reviewed. Sundberg then asked if 1000 feet is sufficient. Chief Meehan responded he thought it is. He explained that part of the reason for the ordinance is to have a successful reintegration of the offenders into a community and he thought 1000 feet does that. He noted that it is easier for the SLMPD to enforce ordinances in the SLMPD community if they are similar. Councilmember Johnson commented a distance of 2000 feet might be ruled unconstitutional in the future. Sundberg moved, Siakel seconded, Approving ORDINANCE NO. 538, "An Ordinance Amending the Shorewood City Code Restricting the Residency of Convicted Sex Offenders in the City of Shorewood" and Adopting RESOLUTON NO. 17 -010, "A Resolution Approving Publication of Ordinance No. 538 by Title and Summary." Motion passed 4/0. Mayor Zerby thanked Chief Meehan for coming this evening. 2. APPROVAL OF MINUTES A. City Council Regular Meeting Minutes of January 9, 2017 CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES January 23, 2017 Page 3 of 15 Siakel moved, Sundberg seconded, Approving the City Council Regular Meeting Minutes of January 9, 2017, as presented. Motion passed 4/0. 3. CONSENT AGENDA Mayor Zerby reviewed the items on the Consent Agenda. Siakel moved, Sundberg seconded, Approving the Motions Contained on the Consent Agenda and Adopting the Resolutions Therein. A. Approval of the Verified Claims Last B. Planning Director Position C. Approving luring for Lead Supervisor in Public Works D. Setting the Date of Monday, May 1, 2017, for the Open Book Meeting E. Accepting the Resignation of Jean Panchyshyn and Authorize Advertisement of City Clerk Position F. Adopting RESOLUTION NO. 17 -005, "A Resolution Making an Appointment to the Minnetonka Community Education (MCE) Advisory Council." G. Adopting RESOLUTION NO. 17 -0061 "A Resolution Making the Appointment of Deborah Zorn (February 1, 2017, - January 31, 2020) to the Lake Minnetonka Conservation District Board." H. Adopting RESOLUTION NO. 17 -007, "A Resolution Accepting the Work and Authorizing Final Payment for the 2016 Crack Fill and Seal Coat Improvements, City Project No. 16 -01." I. Approve Professional Services Agreement for Geotechnical Exploration and Report for Riviera Lane and Shorewood Lane Reconstruction Project, City Project 17 -04 Councilmember Siakel thanked. Clerk Panchyshyn for her service to the City over many years and stated she has been a terrific employee. She noted she was sad to have Panchyshyn leave but she was happy that Panchyshyn can retire and do the things she wants to do. She congratulated Director Brown on obtaining approval to hire a lead supervisor position in Public Works. Councilmember Sundberg stated that Clerk Panchyshyn has been an outstanding employee and she will be missed. Motion passed 4/0. Ken Huskins, 24075 Mary Lake Trail, explained that he had had a conversation with Councilmember Sundberg the beginning of December 2016 during which Sundberg indicated to him that action would be taken during this meeting on how to move forward with actions taken by the Traffic Committee. The report from the Traffic Committee was presented to Council in the beginning of July 2016. As far as he is CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES January 23, 2017 Page 4 of 15 aware there have not been any recommendations from staff or from Council about what actions should be taken to remediate traffic problems in the area near the Minnetonka Country Club (MCC) development. He was disappointed when he read the agenda for this meeting and learned that it was not on the agenda. Since reading the agenda he had spoken with Sundberg a couple of times who shared his concern and she indicated to him that there would be movement from this point forward. He does not know what that movement would be. Shortly after his conversations he did receive and email with a draft report issued by Engineer Hornby attached. He was unsure if Council had received a copy of that report. He clarified he has not spoken with anyone else who served on the Traffic Committee about Hornby's report. He thought the report was inadequate. It did not provide enough information to help Council recommend actions to be taken. He considered the report to be a distillation of what the Committee had already presented to Council with a little budget information added. The budget information is wide ranges and there is no documentation supporting it. In the report traffic enforcement was consistently labeled as a con. The Committee's report indicated that no matter what actions were taken or even if no actions were taken the one thing that could improve the traffic situation was traffic enforcement. He was perplexed by labeling enforcement a con. Mr. Huskins asked Council to reread the minutes from the various meetings since July 2016 during which Council committed to taking actions. He suggested Council decide if those were hollow promises or if the timing was not right back then. He thanked Council for its attention. Mayor Zerby thanked Mr. Huskins for coming before Council. Councilmember Sundberg noted she shared Mr. Huskins frustration. She stated it was her recollection that Council had been told that staff would have its report ready for this meeting. She noted that she thought the Traffic Committee did an outstanding job. She stated that when Council asks a group of residents to come together to prepare a list of their best ideas she thought it prudent for Council to respect that. From her vantage point Council has not been as respectful as it should have. She clarified it is unlikely that the City will be able to do everything the Committee identified but they should be thoughtfully considered. She suggested Council discuss the recommendations during the February 24, 2017, Council and staff retreat. She commented that as the MCC development is built out that will impact traffic significantly. Engineer Homby clarified the information he had sent out was sent to the Traffic Committee, to Council and to staff. The information was what Council had asked for; a slight summary of what the item was and to approximate cost to do it. The report's intent was to be big picture. Mayor Zerby stated it was his recollection that he asked staff to provide Council with an idea of which suggestions would provide the best value for the money spent. Engineer Homby noted that some lower cost items were done. He explained stop bars were painted along the Country Club Road, Yellowstone Trail and Lake Linden Drive cut -thru as part of the 2016 pavement marking project. On Eureka Road double yellow striping was put down as a traffic calming measure. Lighted stop signs have not been installed. He also noted that the suggestions were not prioritized in his report. Mr. Huskins stated when the Traffic Committee was preparing its report some members thought there could be some "quick wins" even though they might be less costly. He then stated when Council and staff discuss this topic again he suggested people not limit their thinking to what might be cost effective CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES January 23, 2017 Page 5 of 15 "quick wins" only. When further vetting is done of some of the suggestions made by the Committee may be found to be more effective than those higher on the list. He does not think that anyone would expect those to be funded out of this year's budget. He encouraged Council and staff to think strategically about the traffic improvements. From his perspective it is not just about one or two things that the City can afford to do now. The problem will not necessarily be corrected by that action. It may take several years of planning and vetting and budgeting for a more effective solution. Mr. Huskins noted that he and the other members of the Committee were not asking for immediate action and solutions to the problem. People do not think that would be feasible. They are asking Council not to think about just what the City can afford in the next 6 — 12 months. They want Council to think about investment in improvements over the next 3 — 5 years. Councilmember Siakel stated the traffic situation is a big issue that will take years to remedy. But, she does think there are improvements that can be done now. She asked if staff would have to order blinker stop signs for certain intersections now for installation in 2017. It was her recollection that Council was supportive of installing those types of signs. Engineer Hornby stated those signs could be ordered now. Mayor Zerby stated there were some suggestions (e.g.; road realignment) that he would like Council and staff to explore further. Councilmember Siakel suggested ordering and installing the recommended blinker stop signs as soon as possible. Councilmember Sundberg stated that during the budgeting process priorities may need to be adjusted. Mr. Huskins stated he thought people understand that making some of the improvements would not be done quickly because of the need to come up with a plan to fund them. Councilmember Sundberg stated every city in the country has infrastructure challenges. Mr. Huskins stated his intent on coming this evening was to bring this to Council's forefront again. Mayor Zerby again thanked Mr. Huskins for his comments. Sue Davis, noted that the eleventh Arctic Fever event held January 12 — 15, 2017, was hosted by the Cities of Excelsior, Shorewood and Tonka Bay. It was a huge success even though there was not a lot of snow. She thought the reason the Friday night pizza party in the Southshore Center was extremely crowded was because there were no snow sculptures to look at. The lack of snow on Saturday did not have as much of an impact. Channel 4 News shot some video in Freeman Park during the day on Saturday. The video was shown on the news that night; there was a reminder about the Princess Brunch that would be held on Sunday at Lord Fletcher's. The Brunch was also extremely crowded. The organizers and Public Works were complimented by the venue providers. There will be a follow -up meeting on January 25 to assess this year's event. She noted there was a shortage of volunteers this year. She also noted that more than 1000 people came through Freeman Park on Saturday. Mayor Zerby thanked Ms. Davis for her efforts in helping make the Arctic Fever event very successful. 5. PUBLIC HEARING rl�� S AND PRESENTATIONS CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES January 23, 2017 Page 6 of 15 A. Report on Lake Minnetonka Conservation District Activities by Representative Deborah Zorn Mayor Zerby noted that newly reappointed member to the Lake Minnetonka Conservation District (LMCD) Board Deborah Zorn was present to report on LMCD activities. Boardmember Zorn stated Council had been provided with a short report highlighting LMCD activities. She highlighted some of the items contained in the report. • The LMCD was established under State Statute 1039.611 in 1967 with a responsibility that is primarily regulatory and code enforcement (dock use area) in nature. The LMCD has expanded its mission by moving into the public safety realm and into aquatic invasive species (AIS). • The LMCD Board approved an update to the LMCD's bylaws in 2016; the bylaws were written in 1967. • The LMCD Board has 14 members composed of a representative appointed by each of the 14 member cities councils surrounding Lake Minnetonka. The Board meets twice a month. • The LMCD has 3.5 staff positions — an executive director, an administrative technician (currently vacant), an administrative assistant, and a part-time administrative clerk. • Executive Director Vickie Schleuning was hired in September 2016. She has over 20 years of experience in local government plus six years in education. • The LMCD partners with: the Hennepin County Sheriff's Water Patrol to enforce regulations, the Minnehaha Creek Watershed District and the Three Rivers Park District (TRPD). The last two years agencies have provided the staff for the Watercraft Inspection Program for AIS done at boat landings. • The LMCD Board embarked on a strategic planning process in 2015. • The LMCD's budget and tax levy for 2017 is $326,343. Shorewood's share of that is 6.8 percent (or $30,723). • The LMCD's harvesting program which is for opening up public navigation only is going through an evolution. There are proponents and opponents of the program. The harvesters are aging and there is not a lot of support for replacing them. The number of harvesters was reduced from four to three because of a reduction in a Minnesota Department of Natural Resources (MN DNR) grant. Mid - summer 2016 there were maintenance issues with another harvester. In 2016 there were 170 truckloads of harvested milfoil and other weeds hauled away. Approximately 8 — 10 percent comes from Shorewood acreage. • In June 2016 Hennepin County installed an emergency dock located on County -owned property located near the Arcola Bridge. The effort was initiated in 2015 after there had been a number of emergencies near Big Island around July 4th where people needed to be airlifted away. Gabriel Jabbour, owner of the Shorewood Yacht Club, helped bring that dock to fruition. • Some of the solar lights on buoys were vandalized. Those were replaced before the 2016 July 0h holiday. • In 2016 the Board amended the LMCD ordinance regarding nuisances and liquor restriction. In response to complaints quiet hours were established from 10:00 P.M. to 7:00 A.M. restricting plainly audible noise at a distance of 150 feet from shore. • The LMCD established a Facebook page in October 2016 — www.facebook.com/lakeminnetonkaeonservationdistriet. • In September 2016 the Board approved Howard's Point Marina's request to reconfigure its dock under the Qualified Commercial Marina Ordinance, The Marina is located in Shorewood. Boardmember Zorn noted the LMCD's hot topics for 2017 include recodification, stakeholder engagement, communications and finalizing the Strategic Plan. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES January 23, 2017 Page 7 of 15 Mayor Zerby thanked Boardmember Zorn for all of the work she does on the LMCD Board. He stated he thought the Board is going in the right direction. Boardmember Zorn thanked Council for its support. 7. PARKS A. Report by Justin Mangold on the January 10,2017 Park Commission Meeting Park Commission Chair Mangold reported on matters considered and actions taken during the January 10, 2017, Park Commission meeting (as detailed in the minutes of that meeting). He highlighted that the Commission has recommended Council order the plans and specifications for the parking lot improvements as configured in the Badger Park Concept Plan 1.5 that Council has approved as soon as possible. Councilmember Sundberg stated because Shorewood has /will be taking ownership of the Southshore Center she expressed she would like to pause on moving forward with additional Badger Park improvements until has the opportunity to solidify Council's vision for the Center going forward. Chair Mangold stated the Park Commission is continuing to move forward with the Concept 1.5 vision noting he has told Council that before. If Council wants the Commission to go in a different direction Council needs to tell the Commission that. He stated he is trying to figure out what items fit Concept 1.5. He explained that when plans for Badger Park were discussed the Commission understood there was a need for additional parking for the Southshore Center. Anything from the Center directly to the Park was not approved as part of concept 1.5. Having moved forward with the new artificial turf field in Badger Park some of the items discussed regarding the Southshore Center and how it could better related to the Park are no longer feasible. Councilmember Sundberg suggested Council discuss the Southshore Center during the February 24 Council and staff retreat. The outcome of that discussion may have an impact on what the Park Commission is doing. Chair Mangold stated Council had indicated it liked Concept 1.5 and that the Park Commission should move forward with it while working within the budget it was going to get. Councilmember Sundberg stated from her vantage point Council may need to realign priorities. She then stated that she does not want to potentially be in a situation a year from now where it needs to redo things because the focus has changed. She recommended focusing on both the Center and the Park at the same time. Chair Mangold stated he welcomed more direction from Council. B. Badger Park Parking Lot Director Nielsen explained the second part of Phase 1 improvements to Badger Park is the parking lot. It was too much to do both the play field and the parking lot in 2016. Therefore, it was split into two years. Money has been budgeted for 2017 for the parking lot improvements. He then explained the Badger Park Concept 1.5 plan takes the Southshore Center into consideration. The view was always that the Center would remain open. The plan was intended to connect the Center with the Park and with City Hall. A big part of that includes improvements to the parking lot that would benefit both the Center and the users of CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES January 23, 2017 Page 8 of 15 the play field. He went on to explain that Concept 1.5 has a different turnaround for Center user than another concept plan had. That allows for a walkway system from the Center through the Park and on to City Hall. He stated staff has been told in the past that it is best to bid projects out early in a year to get the best pricing possible and to get the project done. Nielsen noted that staff and the Park Commission recommend Council authorize the preparation of plans and specifications for the parking lot improvements in Badger Park. He noted that he has spoken with Engineer Homby about including the utilities and some portion of the trail that runs parallel to the driveway then around the play field in the plans. Councilmember Siakel noted she supports doing both of the projects. She stated it is her recollection that Concept 1.5 included redrawing the lines in the parking lot to accommodate the flow of traffic. She asked what Council is being asked to authorize. Director Nielsen clarified Concept 1.5 includes doing that. Siakel stated she interprets that to mean the bid that would eventually be solicited would be for the redesign of the parking lot. Nielsen confirmed that. Siakel asked if the trail that is near the pond would be included in the plans. Nielsen clarified that trail would not be paved; it was never intended to be paved. He explained that part of that area necessitates a box culvert or bridge at the southeast corner of the play field so that the trail could loop into the Park. If Council wants that done it should be done later this year. Then maybe that trail surface could be converted to agricultural lime instead of wood chips. Siakel suggested that maybe the box culvert and surface also be done as part of this project. Nielsen explained when the box culvert is in place then the wood chip trail can be dealt with. Councilmember Sundberg stated Concept 1.5 addressed parking needs and access to and from for the Southshore Center. It was based on how it is currently operating. Director Nielsen explained Concept 1.5 assumed the Center would continue to operate as a community center. And, there was a desire to have the Center connected to Badger Park and to City Hall. Concept 1.5 would do that. Once of the issues at the Center is its limited parking. Concept 1.5 would add several parking spaces. That would benefit both the Park and the Center. Sundberg asked if people envision the Center having about the same amount of traffic. Nielsen stated he viewed that as a business decision. There has been discussion about increasing the use of it. He then stated that because Shorewood has control of the Center it can make improvements that it was reluctant to make when five cities owned the Center. He thought some of those improvements would help increase the use of the Center noting the use of the Center increased this year. Sundberg stated if the use of the Center is increased she asked if the proposed increase in parking would be sufficient. Mayor Zerby stated it was his understanding that Concept 1.5 assumed eventual control of the facility by Shorewood. Park Commission Chair Mangold stated one of the key benefits out of Concept 1.5 would be a full walkway from the Southshore Center to City Hall. There is not safe walkway now. Mayor Zerby concurred with that. Councilmember Siakel asked if the sidewalk / trail be addressed as part of this project. Can it all be connected? Director Nielsen responded yes. Siakel moved, Johnson seconded, directing the City Engineer to prepare plans and specifications for Badger Park parking lot improvements in 2017. Motion passed 4/0. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES January 23, 2017 Page 9 of 15 Engineer Hornby stated he would prepare a professional services agreement for Council's consideration during its February 13, 2017, meeting. C. Freeman Park — South Parking Lot Improvement Director Nielsen explained that last summer the City received a petition from residents living in the Shorewood Ponds development requesting the south parking lot in Freeman Park adjacent to the development be paved in part because of issues with dust control. The issue was referred to the Park Commission. The Park Commission agreed with that and recommended that be done in 2017. Money has been budgeted for that purpose for 2017. Staff suggests the plans and specifications for the Badger Park parking lot should also include those for the south Freeman Park parking lot. Sundberg moved, Johnson seconded, directing the City Engineer to prepare plans and specifications for the south parking lot in Freeman Park in conjunction with those be prepared for the Badger Park parking lot. Motion passed 4/0. 8. PLANNING A. Report by Representative on the January 17, 2017, Planning Commission meeting. Planning Commission Chair Davis noted she did not have a report to give on the January 17, 2017, Planning Commission meeting. B. Conditional Use Permit for Accessory Space Over 1200 Square Feet Applicant: Al and Jennifer Larson Location: 21125 Radisson Road Director Nielsen explained Allen and Jennifer Larson own the property located at 21125 Radisson Road. They propose to expand their existing garage to the west and include a second level space above. The area of the addition combined with the existing garage exceeds 1200 square feet. Therefore, the change requires a conditional use permit (C.U.P.) pursuant to Section 1201.03 Subd. 2.d.(4) of the Shorewood Zoning Code. The property is zoned R -lA/S, Single - Family Residential /Shoreland and contains approximately 45,231 square feet of area. The total amount of garage space, including the second floor area, is 1780 square feet. The house contains 2562 square feet on the first level, with another 2492 square feet in the lower level, for a total of 5053 square feet. He noted the applicants' plans are consistent with the four criteria prescribed in Section 1201.03 Subd. 2.d.(4) of the Zoning Code for granting a C.U.P. for accessory space over 1200 square feet. Nielsen then noted that based upon the analysis of the case the Planning Commission and staff recommend granting the C.U.P. He also noted the Commission held a public hearing on this request. Sundberg moved, Siakel seconded, Adopting RESOLUTION NO. 17 -008, "A Resolution Granting Conditional Use Permit for Additional Accessory Space to Al and Jennifer Larson, 21125 Radisson Road." Motion passed 4/0. C. Proposed Rezoning, R -IA to R -1C Club Lane Area CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES January 23, 2017 Page 10 of 15 Director Nielsen explained this item started out as a request from Bryan Pike to rezone the properties located at 24845 Smithtown Road and 5810 Club Lane from R -IA, Single - Family Residential to R -1C, Single - Family Residential. Mr. Pike owns the Smithtown Road property and his parents own the Club Lane property. The R -lA Zoning District requires 40,000 square foot lots and the R -1C Zoning District allows lots as small as 20,000 square feet in size. The land to the north of Smithtown Road is all zoned R- 1 C. The land that wraps around this pocket of properties is zoned planned unit development (PUD) and they use R -1 C standards. Staff and the Planning Commission did not think it would be appropriate to spot zone those two properties; the City tends to shy away from doing that. After holding a public hearing on that request the Commission and staff recommended that the 12 lots in that pocket of land be rezoned to R -1 C. Council is being asked to approve an ordinance to that effect. Mayor Zerby noted Club Lane is a very substandard road. He explained that for the Minnetonka Country Club (MCC) development the City was able to get the developer to fund improvements for the road where it was just grass. For this request the City could potentially be doubling the number of properties that would have their properties to connect to it. Director Nielsen explained that the two Pike properties could be subdivided. They abut Club Lane. The Pikes are not proposing to subdivide their properties; they want to sell them as is. The applicant was advised that if someone makes a request to subdivide the land the only place for the City to get the additional right -of -way (ROW) from to improve Club Lane would be from the requested subdivisions. There is no room to get ROW on the east side of Club Lane. There would also be a need to take land for a turnaround because there is not one on Club Lane. Drivers use private driveways to turn around. He then explained that 7 of the 12 lots would become conforming under R -1 C zoning requirements; those 7 do not conform with the R -IA zoning requirements. The setback requirements are less for the R -1C district. Mayor Zerby stated the easements may be manageable. He asked who would pay for the improvements to Club Lane. Director Nielsen stated would come out of the subdivision. Nielsen then stated when the time comes the City could potentially consider some type of cost share because it would be an improvement to that neighborhood. Siakel moved, Sundberg seconded, Approving ORDINANCE NO. 5371 "An Ordinance Amending Section 1201.09 Subd. 2 of the Shorewood Zoning Code — The Shorewood Zoning Map." Motion passed 4/0. 9. ENGINEERING /PUBLIC WORKS 10. GENE /NEW BUSINESS A. The Waters Senior Living Project Financing Location: 22920 Highway 7 and 723 Water Street Administrator Lerud explained Council has discussed The Waters Senior Living's (The Waters) senior housing project, The Waters of Excelsior, financing over the last few months. The City of Excelsior proposed a developer- financed pay -as- you -go Tax Increment Financing (TIF) Note structure for financing the project. Council had directed staff to investigate if there were more efficient financing structures. The City hired David Drown with David Drown Associates to do that investigation. Mr. Drown presented his suggestion to Council during its work session just before this meeting. His suggestion was to consider having Shorewood financing the project with a lender financed TIF Revenue Bond. The Bond structure would result in significant savings over the term of the TIF District when compared to the pay -as- you -go CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES January 23, 2017 Page 11 of 15 TIF Note structure. The Bond structure would shorten the term of the TIF District by an estimated four years and that would result in the property coming back on the tax rolls about four years earlier benefitting both Excelsior and Shorewood. Council was being asked to consider a few items this evening as the project moves forward. One is the overall savings to both Cities by going with a TIF Revenue Bond structure. It would require the two Cities to enter into a Joint Powers Agreement (JPA) to allow tax payments to flow through Excelsior to Shorewood so the debt payments could be made to the lender. The developer's agreement between Excelsior and the developer would have to be amended to have Excelsior delegate certain default remedies to Shorewood. He noted that regardless of how the TIF District is financed it is important to remember that The Waters Senior Living's project is a good long -term project for both Cities. He clarified that the TIF District would be Excelsior's TIF District. Shorewood is exploring an option to finance the developer with terms similar to those the developer has agreed to with Excelsior on a preliminary basis. Lerud offered to entertain questions from Council. Councilmember Siakel stated she thought the proposed project would be a good project. She noted that 20 percent of the units in the facility would be affordable for at least 10 years. They would be offered at a lower rate and subsidized. She stated she would be ready to make a motion if other Councilmembers have no comments. Mayor Zerby stated he thought Excelsior representatives should be happy that Shorewood has identified a way to save Excelsior and Shorewood money and to get the redeveloped property back on the tax rolls faster. Jay Jensen, representing The Waters Senior Living, stated he thought The Waters and both Cities would all want to move forward with the most efficient financing to have the shortest term for the TIF District. He asked Council to authorize staff to work with representatives from The Waters and Excelsior to come up with the most creative financing possible. He committed that The Waters representatives would try to do that. George Greenfield, 24715 Yellowstone Trail, stated before approving the TIF for The Waters he asked Council to publicly declare the principle which justifies the situation it would bring about which hasn't been publicly discussed. In 2016 many properties in Shorewood had a property tax increase of more than 12 percent. That money goes into the General Fund and is used for the wellbeing of Shorewood as a whole in the larger community. In December 2016 Council approved a 2 percent increase in the tax levy. Although that seems modest it is twice the rate of inflation. That 2 percent increase immediately wipes out the increases in wages and Social Security for people who depend on cost of living increases. He says that as a person who was taught that one should take pleasure in paying taxes because it indicates their membership in civil society. The Waters' project with TIF allows the property tax rate on the project site to remain flat at its unimproved level for 15 — 20 years. No part of the tax the City receives is determined by the increase in the value of the property during that time and no part of any increase in the value of the property due to inflation goes into the General Fund during that time. They both go back to the developer. Hence the project site would not contribute anything toward the maintenance of roads, upkeep of parks, servicing of the water system or anything else having to do with the common good of Shorewood. In addition, the cost of other community services (e.g.; police and fire and the public schools) would likely increase over those CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES January 23, 2017 Page 12 of 15 20 years. The TIF District's contribution does not increase during that time in a corresponding way. Those increases are borne by the citizens of Shorewood. He asked Council how it justifies on the one hand laying a heavy burden on the citizens of Shorewood while on the other hand underwriting a private project that would be parasitic on the City for up to 20 years. He stated that more over The Waters seems to be reading from the same consultant's script that Oppidan Investment Company read from. The two recurring themes are blight and the idea that the project cannot be done without TIF. From his vantage point the apartments in question were never blighted. One man's blight is another man's rare opportunity to have a roof over his head which those apartments provided. If the apartments are blighted then why did Excelsior allow them to become that way failing in its civic duty to oversee that property. When the apartments were built they were some of the nicest apartments in the area. He questioned if Shorewood should reward Excelsior for its failure in civic oversight and become a witting or unwitting partner in its plan to raise any modest dwelling possible and replace it with a ridiculously expensive one. He explained the original purpose of TIF, which the State of California has outlawed because it was being abused too much, was to encourage development in areas where it would not otherwise occur. All people hear is that locally nothing reasonable can be built because the land value is too great. High land values imply high demand. Great demand implies a good opportunity to make money. Therefore, the claim that the project cannot be done without TIF is highly doubtful. He stated he thought the proposal is lacking in the most basic feature of equity. It burdens to the advantage of a few and takes from the many. Mr. Greenfield invited members of Council who wish to do so to rebut or point out the error in anything he just said. He thanked. Council for its time. Siakel moved, Sundberg seconded, guiding staff to present the Tax Increment Financing Revenue Bond financing option to the City of Excelsior for discussion while extending latitude to the Shorewood City Administrator and City Attorney to negotiate the best financing option on behalf of Shorewood. Mayor Zerby stated he thought the motion gives Excelsior some latitude when considering Shorewood's recommendation and it help's Shorewood when considering the financing. Motion passed 4/0. Discussion moved to Item 10.0 on the agenda. The following was discussed after Item 10.0 on the agenda to consider the resolution requesting the detachment and annexation of land which was not acted upon. Administrator Lerud clarified that during its January 9, 2017, meeting Council only approved the Attachment /Detachment Agreement between the City of Excelsior and the City of Shorewood as presented. Attorney Keane noted the State of Minnesota ultimately approves the boundary adjustment. Director Nielsen confirmed that. Siakel moved, Johnson seconded, Adopting RESOLU'T'ION NO. 17- 0091 "A Resolution Requesting Concurrent Detachment from Shorewood and Annexation into Excelsior of Certain Lands CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES January 23, 2017 Page 13 of 15 Pursuant to Minnesota Statutes Section 414.061" and directing staff to file the Resolution with the State of Minnesota once the Tax Increment Financing is agreed upon by the City of Excelsior and the City of Shorewood. Motion passed 4/0. Discussion returned to Item 10.D. B. Regulations for Residency of Convicted Sex Offenders This item was discussed after Item 1B. C. Simple Recycling Service Agreement Administrator Lerud explained Great Lakes Recycling, dba Simple Recycling, contacted the City to find out if the City would be interested in providing free curbside pickup of soft recyclables (e.g.; textiles). The meeting packet contains a copy of the information Simple Recycling provided. There are a number of other cities in Hennepin County that use those services. Great Lakes Recycling has accepted the modifications staff suggested to the agreement. The only cost to the City would be for the Recycling Coordinator to inform residents about the program. The soft recyclables would be picked up on the same day as other recyclables. The vehicle used for pickups would be smaller than other recycling vehicles. The City would receive $0.01 per pound of gross receipts over the life of the contract. Councilmember Sundberg stated she thought it would make sense to move forward with this and that she thought the residents would welcome this service. She noted she would love having that resource available to her. Mayor Zerby stated he assumes Simple Recycling is a for profit company. Administrator Lerud confirmed that. Zerby noted there are charitable organizations that take this type of recycling and some of them provide pickup service. Councilmember Johnson stated there is a drop box near Minnewashta Elementary School. That drop off is also for profit. He noted the information provided by Simple Recycling states its sister company manages clothing and household discard donation program in partnership with non - profit organizations. There is a footnote of one after that statement but the entire footnote was not on the paper. He noted he would prefer for there to be a non - profit use. Councilmember Siakel stated residents would still have the option of what organization to use. Mayor Zerby stated that as part of the community education effort he would like it to be communicated that there are other charitable organizations that take the same type of recyclables. Councilmember Sundberg stated curbside pickup makes it easier. Councilmember Siakel stated she is surprised that the hauler would only need one truck. Mayor Zerby asked if there are other for - profit organizations that provide the same service; maybe an organization that would pay the City more. Administrator Lerud clarified that that Simple Recycling would pay the City $0.02 per pound if the City enters into the agreement before February 15, 2017. Administrator Lerud clarified it would be a four -year contract with no exclusivity. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES January 23, 2017 Page 14 of 15 Councilmember Siakel stated residents have so many bins /containers for trash, yard waste and recycling. Hennepin County wants to increase organics recycling also. Someone needs to find a way to help residents manage that. Zerby moved, Siakel seconded, adopting the Agreement for Collection of Soft Recyclables between the City of Shorewood and Great Lake Recycling, Inc. dba as Simple Recycling" subject to staff telling residents that there are charitable organizations that also provide curbside pickup services for soft recyclables. Motion passed 4/0. Councilmember Johnson stated the City has a number of haulers who pick up residential refuse. On a cul- de -sac there could be six or seven different haulers coming through on trash day. He suggested talking about that at the retreat. Having so many haulers creates wear and tear on infrastructure. Councilmember Sundberg stated she attended a break -out session during the League of Minnesota Cities' annual meeting. She learned how committed residents are to their refuse hauler. It was noted Council did not take action on the resolution for Item 10.A. Discussion returned to the end of the discussion of Item 10.A to consider the resolution. D. Deer Management Program 2016 Summary Report Director Nielsen explained the meeting packet contained a copy of a map showing how many deer were harvested at various sites during the 2016 Deer Management Program. Seventeen deer in total were harvested. The City continues to get requests from residents to harvest their properties. Those sites are evaluated each year to determine how suitable they would be. He noted the hunt coordinators indicated weather played a factor in this year's Program — it as warm and there was a lack of snow. A. Administrator and Staff 1. Monthly Budget Report Mayor Zerby noted the meeting packet contains a copy of the December 2016 Preliminary Monthly Budget Report. Director DeJong explained that after discussion he had with Administrator Lerud regarding the purchase payments to the previous co- owners of the Southshore Center they decided the payments would be posted to 2016 because that is when the court order was issued. The Preliminary 2016 December Budget Report shows a surplus of about $308,000. Once the purchase payments totaling $311,000 are posted to 2016 expenses the final Budget will likely be close to breakeven. 2. Council Retreat — February 24, 2017 Administrator Lerud stated he has a preliminary list of items for discussion during the February 24, 2017, Council and staff retreat that he will send out to Council and staff by the end of January. The retreat will start at noon and end by 5:00 P.M. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES January 23, 2017 Page 15 of 15 Other Mayor Zerby stated he watched the snow plowing video. He found it to be very educational. Director Brown thanked the Lake Minnetonka Communications Commission for putting the video together. The video targeted driver behavior as well as pedestrian safety. He noted there is a link to the video on the City's website. Engineer Hornby explained the contractor has resumed construction on the south end of the Minnetonka Country Club (MCC) project site. Storm sewer is being installed that will go from the south side of the site to Trunk Highway 7. The contractor has modified its construction technique which is what has allowed them to start construction now. Most of the work being done is trenchless. The contractor is actually jacking a pipe. The developer acquired easements from one property owner. That section is being open cut. The rest along Pleasant Avenue across Yellowstone will be put in by trenchless methods. People will find some potholes along the route because utilities have to be located. The burial of utilities along Smithtown Road continues. The developer paid Xcel Energy and other utilities to that work. The survey work for the feasibility report for the Riviera Lane and Shorewood Lane Street and Utility Improvement Project has been completed. The borings were completed the previous week. Hornby noted the Minnetrista City Council ordered the preparations of plans and specifications for improvements to Enchanted Lane (in Minnetrista) and Tuxedo Road. He has WSB and Associates personnel preparing a professional services agreement for roadway improvement work on Enchanted and Shady Islands. Director DeJong stated he is working on year -end financial activities. Mayor Zerby stated he saw that the City's website was updated with regard to the MCC project but not for the Oppidan project. Director Nielsen stated he would look into that. B. Mayor and City Council Sundberg moved, Johnson seconded, Adjourning the City Council Regular Meeting of January 23, 2017, at 8:34 P.M. Motion passed 4/0. RESPECTFULLY SUBMITTED, Christine Freeman, Recorder I_U I� Ii Ill l� Scot0 erby, ayor Jean Panchyshyn, City berk