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02-13-17 CC Reg Mtg MinutesCITY OF SHOREWOOD CITY COUNCIL REGULAR MEETING MONDAY, FEBRUARY 13, 2017 MINUTES 1. CONVENE CITY COUNCIL REGULAR MEETING Mayor Zerby called the meeting to order at 7:00 P.M. A. Roll Call 5755 COUNTRY CLUB ROAD COUNCIL CHAMBERS 7:00 P.M. Present. Mayor Zerby; Councilmembers Johnson, Labadie, Siakel, and Sundberg; Associate Attorney Reppee; 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 Mayor Zerby noted that staff has asked that Item 3.1 be removed from the agenda. It will be discussed during a future meeting. Sundberg moved, Labadie seconded, approving the agenda as amended. Motion passed 5/0. 2. APPROVAL OF MINUTES A. City Council Work Session Minutes of January 23, 2017 Sundberg moved, Johnson seconded, Approving the City Council Work Session Minutes of January 23, 2017, as presented. Motion passed 4/0/1 with Labadie abstaining due to her absence at the meeting. B. City Council Regular Meeting Minutes of January 23, 2017 Siakel moved, Johnson seconded, Approving the City Council Regular Meeting Minutes of January 23, 2017, as presented. Motion passed 4/0/1 with Labadie abstaining due to her absence at the meeting. 3. CONSENT AGENDA Mayor Zerby reviewed the items on the Consent Agenda. Sundberg moved, Labadie seconded, Approving the Motions Contained on the Consent Agenda and Adopting the Resolutions Therein. A. Approval of the Verified Claims List B. Authorize Public Works Light Equipment Operator Advertisement CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES February 13, 2017 Page 2 of 14 C. Adopting RESOLUTION NO 17 -011 "A Resolution Making the Appointment of Edward Rock (March 1, 2017 - February 29, 2020) to the City of Shorewood Park Commission." D. Approval of Phased Retirement Agreement with Brad Nielsen E. Accept Professional Services for the Enchanted and Shady Islands Street Improvement Project (This was moved to Item 10.13 under General/New Business.) F. Adopting RESOLUTION NO. 17 -012, "A Resolution Granting a First Amendment to Water Tower Space Lease Agreement By and Between the City of Shorewood and AT &T Wireless of Minnesota (Lessee) for Premises Located at 26352 Smithtown Road." G. Adopting RESOLUTION NO. 17 -013, "A Resolution Adopting the Urban Forestry Management Plan for the City of Shorewood." H. Adopting RESOLUTION NO. 17 -014, "A Resolution Approving Change Order 2 for the 2016 Trunk Watermain Extension Project, City Project 16 -04." I. Accept Professional Services Proposal for Badger Park Phase 2 Improvements (This was removed from the agenda.) Councilmember Sundberg asked that Item 3.E be removed from the consent agenda for discussion. Councilmember Labadie stated for Item 3.13 the staff report under Next Steps and Timelines states "The position will be open until filed, but the first review will be scheduled for March 6. We anticipate a candidate could be brought forward for Council consideration at the April 10 meeting." She interpreted that to mean there will be only one candidate. Administrator Lerud clarified that staff hopes there will be at least two candidates. Labadie stated she understands that to mean that the "weeding out" process does not occur without Council. Lerud confirmed that. Motion passed 510. 4. MATTERS FROM THE FLOOR Mark Ruofs, 5935 Mill Street, and Maureen Fuhr, 5925 Mill Street, noted they were present to express concern about the increased traffic on Mill Street as well as the speeding. They did an informal survey of the residents in the neighborhood and obtained signatures of who would be interested in having a radar sign installed along Mill Street similar to those along Country Club Road (i.e., a speed awareness display sign). They would like to know what else they should do to get the City to install such a sign. Ms. Fuhr stated they would like to have a permanent radar sign. Based on data she has gathered permanent ones do work. Drivers reduce their speed by 85 percent once they have been installed. She commented that she heard the signs along Country Club Road are not going to be permanent. Mayor Zerby stated he thought they are permanent unless Council changes its mind. Ms. Fuhr explained there 22 households in Shorewood along Mill Street and noted they had not spoken to residents who live along the section located in the City of Excelsior. She noted drivers coming from the City of Chanhassen drive through areas where the posted speeds are 50 miles- per -hour (mph) then 45 CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES February 13, 2017 Page 3 of 14 mph then 30 mph on their way to Highway 7 or Excelsior. She walks against the traffic along Mill Street and she looks at drivers faces when they reach the first 30 mph sign and it appears to her that they are not paying attention to the changing speed limits. During her walks she gives drivers a thumbs down to try and get them to reduce their speed. She expressed confidence that the speed awareness sign would help in slowing the drivers down. She noted a representative for 15 of the 22 households have signed on as being very enthusiastic about having a sign installed. Ms. Fuhr stated it is her understanding that about two years ago there had been discussion about constructing a sidewalk along Mill Street in Shorewood someday. The residents would like that to come to fruition sooner rather than later. She then stated she and her family have lived in their home for about 20 years. She and her husband raised their two daughters there. The traffic has increased significantly since they first moved in; particularly over the last few years. There are families who bike or walk along Mill Street and she expressed concern about someone getting hurt by a vehicle. Ms. Fuhr noted the residents living along Mill Street would very much like to have a permanent flashing sign installed. Mayor Zerby stated it is his recollection that when a decision was made to install speed awareness display signs along Country Club Road guidelines were created for addressing speed concerns from residents. Director Brown explained the process that was formulated was with regard to traffic calming measures. At that time Council decided to have driver feedback signs installed along Country Club Road. The pair of signs cost $6,950. People have observed drivers changing behavior because of them. Funding all of the requests the City has received or could potentially receive could be problematic. He noted there is no formal policy for evaluating the placement of those types of speed signs, but there is a procedure in place to evaluate traffic calming measures. Zerby stated he thought one part of the decision process was about what percentage of the drivers were traveling at or under the speed limit. Director Brown noted that Mill Street is a county roadway. Mr. Ruofs noted the Mill Street/Powers Boulevard roadway is a shortcut between Highway 5 in Carver County and Highway 7 in Hennepin County. He explained that South Lake Minnetonka Police Department (SLMPD) patrol officers were out over the past weekend doing radar speed checks along Mill Street. It was apparent that their presence had a positive impact on drivers slowing down. He stated when the temporary speed buggy is put out in the summer it does have a positive temporary impact on speeding. Ms. Fuhr stated she thought the situation along Mill Street was unique because the speed limit on Powers Boulevard /Mill Street roadway transitions from 50 mph to 45 mph to 30 mph. She noted there is not a single stop sign /light between Highway 5 in Chanhassen and the six -way stop in Excelsior. Mayor Zerby asked Director Brown to bring some options back to Council. Mr. Ruofs asked if there is anything the City needs from them. Mayor Zerby asked them to leave their list of signatures and maybe some of the other information they gathered. Ms. Fuhr asked if it would help if they called Hennepin County. Mayor Zerby stated public input is always valuable. Ms. Fuhr then asked who would pay for the signs. Director Brown stated he was not sure. Mayor Zerby stated he assumes a sign on the northbound sign is what is needed first. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES February 13, 2017 Page 4 of 14 Councilmember Siakel encouraged them to go and talk to the Excelsior City Council. She noted that the then Shorewood Council had been in favor on constructing a sidewalk along Mill Street but the Excelsior Council was not at that time. Councilmember Labadie stated one of the main reasons the Mill Street trail segment was tabled was because some people considered it to be a sidewalk to nowhere because Excelsior was not going to construct a segment in Excelsior to continue it. She thanked Ms. Fuhr and Mr. Ruofs for coming. She encouraged them to call SLMPD Chief Meehan because he is very receptive and willing to listen to concerns. Mr. Ruofs noted his wife has made many calls to the SLMPD to express concern. Mayor Zerby thanked them for coming. 5. PUBLIC HEARING 6. REPORTS AND PRESENTATIONS 7. PARKS 8. PLANNING 9. ENGINEERING /PUBLIC WORKS A. Country Club Road, Yellowstone Trail, Lake Linden Drive Road Discussion Engineer Hornby explained the meeting packet contains a copy of a memorandum from him and one from Chuck Rickart, a traffic engineer with WSB & Associates and the facilitator of the Traffic Committee, regarding potential traffic improvements to the Country Club Road, Yellowstone Tail and Lake Linden Drive corridor. Mr. Rickart's memo provided a brief summary of each potential improvement, a range of costs to make the improvement, and advantages and disadvantages for each. Councilmember Sundberg noted that the recommendations from the Traffic Committee are going to be discussed during the February 24, 2017, Council and staff retreat. That is what the public was told during Council's January 23, 2017, meeting. She anticipates that discussion to be more in -depth and that it would be discussed as part of a broader discussion about City -wide street improvement needs and traffic needs. Engineer Hornby explained for his memo he went through Mr. Rickart's memo and identified timeframes for when improvements could be implemented. The timeframes are how long it would take to implement an improvement project. For the Yellowstone Trail improvements and the miscellaneous improvements a number of improvements were grouped together because they were similar. Miscellaneous items could be done at any time; they require staff time and are low cost. Others, such as stop bars, have already been done. Hornby noted that Mr. Richart was present to answer any questions Council may have. Councilmember Siakel stated she thought there are some things the City can do now. She thought the stop sign enhancements along Yellowstone Trail should be done this year; that would be affordable. She noted that she does not want to wait until the Minnetonka Country Club (MCC) development is basically complete before doing something with the widening Country Club Road. Maybe improvements like CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES February 13, 2017 Page 5 of 14 widening Smithtown Road from the MCC entrance to Country Club Road or widening Country Club Road as it approaches Smithtown Road could be started. She stated she does not foresee a roundabout going in there at least in the foreseeable future. The County Road 19 / Smithtown Road / Country Club Road intersection impacts a lot of people and therefore it would not make sense to do nothing. She thought the available budget would help dictate what improvements can be done in the near future. She noted that if Council decides to move improvements for the roadways out on Enchanted and Shady Islands up in the CIP then she does not know where the City would get the funding from to pay for the improvements along the corridor. Mayor Zerby stated he thought something needs to be done with Country Club Road for sure. He would like to learn more about widening that roadway with bike lanes. He explained Engineer Hornby's memo indicates the City would have to acquire land /easements to do that. It is his recollection that the City acquired more public right -of -way (ROW) along the west side of the roadway as part of the MCC project. Maybe some of the land needed has already been acquired. He noted there are some topographical issues on that ROW that would have to be addressed. He stated that roadway has been deteriorating quickly recently. If that roadway were to be reconstructed in the next few years that would be a good time to widen it. He then stated he thought the intersections could be tightened up at County Club Road and Yellowstone Trail and at Yellowstone Trail and Lake Linden Drive. He went on to state more visibility on stop signs would be helpful. So would widening Smithtown Road from the MCC entrance to Country Club Road. Councihnember Sundberg stated she would like to learn more about roundabouts. She then stated if a single or dual roundabout were constructed at the intersection of Country Club Road and Smithtown Road it appears it would require acquiring a significant amount of land from the businesses in that area. Councilmember Labadie stated bike lanes could not be added on Country Club Road without widening the roadway. She thought bike lanes would be a valuable addition. Councilmember Siakel noted there will be a path around the MCC development. She stated she thought a bike lane along the side of Country Club Road would make sense. Engineer Hornby explained that at Old Market Road a bike lane was added in each direction and a sidewalk was put in along the roadway. A bike lane on each side of the roadway helps reduce drivers' speed. Mayor Zerby commented that in the City of Minneapolis some of the bike lanes were painted green. Councilmember Johnson stated the trimming of trees to improve sight lines could be done soon. So could the removal of the use of Country Club Road, Yellowstone Trail and Lake Linden drive from Google Maps directions. In response to a question from someone in the audience, Mayor Zerby stated the retreat would be video recorded and broadcast on the cable television local community channel and there would be detailed minutes of the discussion. He noted the retreat is an open meeting so the public can attend if they want. It was clarified that the video recording of the retreat would not be broadcast. Zerby stated it could be placed on the City's website or put out there in YouTube format. Councilmember Labadie stated she would like to be informed about the benefits and disadvantages of single and dual roundabouts. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES February 13, 2017 Page 6 of 14 Councilmember Siakel stated the Traffic Committee discussed a single roundabout and a dual roundabout. It is her recollection the viability of putting in a single roundabout was questionable and for a dual roundabout it was even more questionable. It would also be very costly to put them in. And, the county would have to be involved. Ken Huskins, 24075 Mary Lake Trail, (a member of the Traffic Committee) explained the Committee members had thoughtful discussion about each of its concepts. They thought the roundabouts would be traffic calming, prevent the stackup of traffic at intersections and make it less desirable for drivers going south on County Road 19 to take the cut thru along the corridor. They knowingly left the discussion about feasibility and costs for someone else to deal with should Council want that investigated further. Councilmember Sundberg reiterated her desire to be educated about roundabouts and clarified that she was not necessarily advocating for them. She would like to hear an engineer's perspective on how realistic it would be to put them in. Engineer Hornby explained the Traffic Committee thought that intersection modifications could possibly have a desired outcome. The engineers prepared graphics showing what the roundabouts might look like for Committee discussion purposes. Councilmember Siakel asked when Country Club Road is scheduled for improvements in the Capital Improvement Program (CIP). Engineer Hornby stated he thought it was scheduled for an overlay in 2019 or 2020. 10. GENERAL/NEW BUSINESS A. SeeClickFix Renewal Administrator Lerud explained that the City has been using the SeeClickFix Customer Relationship Management (CRM) system to track complaints and problems for about one year. There were 72 issues entered into the system in 2016. Staff believes the limited use may not justify the cost. SeeClickFix does not want to lower the cost of what Shorewood pays for using the system because it is considerably lower than what it offers to other cities. But, it offered additional modules for no additional cost. It is offering the use of a mobile app to report a problem. It also offered the use of an internal work order system. Staff could then enter calls that come into City Hall. The City currently does not have that type of system. The work order system could be accessed by Public Works personnel and police personnel when they are out in the field. SeeClickFix would also provide some additional staff training. Lerud noted that staff recommends extending the contract with SeeClickFix for one more year at an additional cost of $200 (a total cost of $3,780) when compared to the cost for the first year. Councilmember Sundberg questioned the appropriateness of encouraging people to use the mobile app while they are driving. Councilmember Labadie stated she thought the cost for the first year's contract was a lot to pay for 72 issues. She indicated she liked the two new modules that would be added. She stated she could support extending the contract for one more year. But, if there is not an increase in the usage she would not support extending it for a third year. She stated she does not think most residents know about the system. To make the use of the system a good return on the investment the residents need to be educated about its availability and how to use it. CITY OF SHOREWOOID REGULAR COUNCIL MEETING MINUTES February 13, 2017 Page 7 of 14 Mayor Zerby stated that he and Administrator Lerud spoke about the limited use of the system. He thought there needs to be a culture shift in City Hall so that employees start to use it. He explained the use of a work order systems has worked well for other cities and he thought it could do the same at Shorewood. He got the sense Lerud thought the City could benefit from using it. There are alternative ways to track work orders; for example, using an Excel spreadsheet or Laserfiche. That would also take staff time and training to get them up to speed. He noted that he agreed the usage was low for the cost paid. But, he thought it would be beneficial to use it for another year. Councilmember Siakel asked for staff to comment. Director Brown explained there are two open issues for Public Works. One is the flooding on Church Road. The issue has been open for possibly 8 months and during that time engineering has been working on a drainage plan for Freeman Park. Residents may think the City is not doing anything about it. Director Nielsen explained that to date SeeClickFix has not worked for his department. As a matter of policy the City does not take anonymous complaints for a number of good reasons. Because no one knew who made the complaint staff could not follow up with that person if they had questions. He has been told that the newer version will capture that information for staff. Councilmember Siakel stated she thought the approximate $3,700 cost was somewhat expensive. Yet, she could support extending the contract for another year including the two additional modules. The cost is relatively small when compared to the City's total budget. She encouraged staff to use it more and to educate residents about its availability. Councilmember Johnson stated he uses the mobile app albeit it is not personalized to Shorewood. He can see what is going on in other communities that use it. He then stated there are residents who do not know they live in Shorewood. If they were to click on SeeClick they could find that out. He questioned if all of the communities in the area that use the system could jointly have something published in the Sun Sailor or the Lakeshore Weekly to broaden the awareness of its availability. He noted that he likes that the system is somewhat transparent by allowing residents to track that problems and complaints get resolved. Sundberg moved, Zerby seconded, authorizing staff to extend the contract with SeeClickFix for one additional year. Motion passed 510. B. Appeal for Extension of Deadline to Comply with Notice to Remove Appellant: Stanley Wartman Location: 26750 Smithtown Road Director Nielsen explained the City received a complaint regarding the Wartman property located at 26750 Smithtown Road. The original complaint was relatively minor. It was a car that had been parked on the lawn; the car may have disabled. That complaint triggered an inspection. During the inspection a number of other violations were found. The list is about one and one half pages long. The violations included, for example, numerous vehicles, junk vehicles, and many types of unusable items. The property owners were sent a Notice to Remove to which they appealed. They have asked for 90 days to comply with the notice. Staff thinks it could take that long to do. In the past if an owner has made a good -faith effort to correct the violations the City has routinely granted a 30 -day extension. He stated a plan needs to be developed for what must be done in what timeframe. He and the Building Official can work with the owner on that. It is likely that a lot of the materials are frozen into the ground. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES February 13, 2017 Page 8 of 14 Nielsen noted staff suggests Council grant a 30 -day extension with the potential for another 30 -day extension provided there has been significant progress. John Wartmann noted he was present representing his brother who was away on vacation. He stated the property is the old farm homestead. Their parents had lived there for 60 years. A lot of the materials in violation have accumulated over the years. It is mainly located behind a fence. About half of the vehicles, those that were not frozen into the ground, have been removed already. He thought the rest could probably be removed soon because of the warm weather. His brother needs a plan for where to recycle a lot of items, items that are likely frozen in. He noted he thought the plan recommended by Director Nielsen sounded good. Sundberg moved, Labadie seconded, granting Stanley Wartmann, 26750 Smithtown Road, a 30 -day extension to comply with the Notice to Remove with the potential for another 30 -day extension provided there has been significant progress made by March 9, 2017. Councilmember Siakel asked Mr. John Wartmann if there is a plan for what can be accomplished by March 9. Mr. Wartmann stated most of the vehicles would be gone within 30 days provided they are not frozen really deep into the ground. Most things should be gone within 30 days. He noted his brother does not come back from vacation until February 24. He will work on removing things in the interim. Motion passed 510. C. Letter from City of Excelsior Regarding the Waters of Excelsior Project Administrator Lerud explained that by the end of Council's January 23, 2017, meeting Council had approved all of the necessary agreements with the City of Excelsior for The Waters of Excelsior senior housing project. One of the requirements the City put on the resolution approving the detachment of lands from Shorewood and annexation into Excelsior was that the two city staffs and consultants reach an acceptable financing arrangement. Shorewood staff provided Excelsior staff with information on Shorewood's proposed financing option and requested that a meeting be scheduled between Excelsior's staff, financial advisor and bond counsel and Shorewood's. Excelsior did not honor that request but the Excelsior City Manager did respond with a letter on February 9, 2017, explaining Excelsior's position (a copy of the letter was included in the meeting packet). Excelsior is only interested in the pay -as- you -go TIF option for a variety of reasons as listed in the letter from Excelsior. Greg Miller, 355 College Avenue, Excelsior, stated he was present to speak briefly about The Waters project and to express his support for it. He thought most people agree that The Waters is a good project and that the developer is great. The company wants to put $30 million into the project. It was approved by the Excelsior Council on a 3/2 vote. He expressed his appreciation for Administrator Lerud's efforts to try and find ways to save money for both Cities. He stated he thought there has been a lot of back and forth discussion between the staffs and various financial consultants. He explained he wanted to clarify a couple of things for the Shorewood Council. The affordable housing requirement is a key component of the project. The project came in under Excelsior's Planned Unit Development (PUD) Ordinance and it only required a 3/2 vote to support the project. Excelsior has to change its Comprehensive Plan in order to do the project and that requires at least four members of Council to approve it. With the affordable housing component the Comp Plan amendment would only require approval by three Councilmembers. Without the affordable housing component the project would not move forward because two Councilmembers would not support amending the Comp Plan; they do not support the project because it would be one story higher than what Excelsior's current zoning allows. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES February 13, 2017 Page 9of14 The project includes making $400,000 in public improvements in the area (e.g.; sidewalks). The people who live in the area near the project are not opposed to it although some would have preferred it to be a little smaller. He thought the public service aspect is good, the developer is good and the project would be beautiful and a great addition to the area. He commented that he considers Excelsior like a little brother to Shorewood; it is about a third the size and it's budget is about a third the size. It is a little brother with a big city problem which is its downtown. Excelsior's pay -as- you -go TIF policy has been in place since TIF came out. The policy eliminates any risk to Excelsior and it is a tool for enforcing continuing developer obligations (e.g.; affordable housing). It was his understanding that the financing option put forth by Shorewood, the TIF revenue bond, there would be an interest rate reset 5 — 7 years after the bond was issued. He also heard there was one analysis that said he TIF revenue bond could not be tax exempt because of the structure and who owns it. If that is the case that would reduce the savings presented in the analysis for the TIF revenue bond option. He appealed to the Shorewood Council to go with the pay -as- you -go TIF option. He thought it was simpler and more straightforward and it reduces the risk for both cities. The savings will vary depending on how the assumptions pan out. He reiterated The Waters project is a fantastic project. Once the TIF District ends future municipal property tax proceeds from the development would be split such that 70 percent would go to Shorewood and 30 percent to Excelsior; Excelsior compromised on what portion it originally wanted. He asked that Shorewood honor the pay -as- you -go approach so the project can move forward. Mr. Miller thanked council for its time. Councilmember Sundberg stated it was her understanding that the affordable housing component was always part of the developer's plan. Mr. Miller clarified that came along later in the process. He noted he likes that component. He explained that when it became apparent that two members of the Excelsior would not support the project because it was four stories high. If the project did not move forward Excelsior would not be able to do $400,000 in public infrastructure improvements that would be significant for that area. The Metropolitan Council allows a comp plan to be amended with a three vote majority if a project contains affordable housing. The people that support the project think that the project is off in the distance enough and is located near Highway 7 and is primarily in Shorewood and therefore having a little taller structure is okay. Sundberg stated she thought the project was excellent and a win —win for both cities. She was thankful that Shorewood is financially stable and does not need to be as concerned. She noted she respects Excelsior's pay -as- you -go need. She also noted her willingness to support moving forward with Excelsior's pay -as- you-go proposal. Councilmember Labadie stated she agrees it is a great project and that it is the best use for that site. She stated there have been a lot of overlapping issues for cities in the South Lake community. She thanked Mr. Miller for coming this evening. She noted the memo from the Excelsior City Manager states "While your proposal may result in reduced overall cost to the project through interest savings, we believe it unnecessarily increases both the risk and the complexity of the deal. " She expressed disappointment that Excelsior does not want to move forward with Shorewood's financial proposal because she thought it was better deal. She noted that she supports the project as a whole. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES February 13, 2017 Page 10 of 14 Councilmember Johnson commended Administrator Lerud for bringing alternative financing to the table. It is his understanding that there was a request to meet with representatives for Excelsior to discuss Shorewood's proposal which was not honored. A letter was sent instead. I-Ie would have preferred that there would have been a meeting to discuss the proposal. It's his understanding that there is a way to move forward with Shorewood's proposal that would be very low risk for Excelsior. He thought the cost savings for both Excelsior and Shorewood taxpayers warranted having the meeting. Councilmember Labadie stated it is her understanding that Excelsior has dug its heels in and it does not want the meeting. Mr. Miller stated the letter may appear to be harsher than it was intended to be. He thought there has been a lot of communications between the two Cities and with representatives from Springsted {the company Shorewood used to structure the TIF financing deal for the Oppidan project in Shorewood }. He noted he appreciates the desire to save money but depending on the assumptions made the savings may or may not have been realized. He then stated that it is his understanding that with the TIF revenue bond financing there would not be a way to enforce the affordable housing component requirement. That component is required to amend the Excelsior Comp Plan and that is necessary to move the project forward. Councilmember Johnson stated he thought Shorewood Attorney Keane had indicated there was a way to ensure the affordable housing component could be enforced with a TIF revenue bond approach. Administrator Lerud stated the two bond counsels would have to get together. Lerud explained if the tax exempt tax increment bond approach is taken there could not be a provision in there for affordable housing. That provision would make it a taxable bond issue. The savings would be realized if it were tax exempt. There may be ways to do that but the bond counsels have to work that out. Councilmember Siakel stated after taking all of the issues into consideration she asked if Council views the project as being of value now and into the future. She thought Shorewood's financing proposal was a better option. She was not sure it was enough to stop the project from moving forward. She then stated that early on in the project Shorewood asked for more information from both the developer and Excelsior on the financials. Shorewood did not get that. Now the process is at the point where the financing method has to be finalized and there is not time to try and work out the details of how to make Shorewood's proposal work. That disappoints her. She noted she thought the project would benefit the residents in both communities. Therefore, she was willing to put aside her extreme disappointment to do something that would be good for the future needs of the communities. Councilmember Sundberg stated she was also disappointed that Excelsior did not work as a good partner in this to date. However, the fact that Mr. Miller came tonight was a very positive step in the right direction. The Waters project is needed and it is good for the area. She noted that Excelsior backed away from a 50150 split on revenue proceeds to a 70/30 split. She then stated that although the Shorewood financing option has a lot of merit she does not want to stop the project because of it. Mayor Zerby stated he thought the project is worthwhile. He noted he is not a fan of the height of it but it is required for affordability to the developer. The enforceability of the affordable housing with the revenue bond is questionable and that gives him some doubt. He expressed his appreciation to Mr. Miller for coming to speak with Council. Mr. Miller state the project to date has been challenging. He noted that he has served on the Excelsior council for 12 years and he has only disagreed with Shorewood twice. Administrator Lerud stated the question about the amount of financing and when interest starts still needs to be answered. Mr. Miller committed that Excelsior would work with Shorewood on that. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES February 13, 2017 Page 11 of 14 Councilmember Johnson stated he received a call from a resident who told him that the State of California no longer allows TIF. He researched that and learned that when California was in a tough budget situation the TIF projects were in the billions of dollars. He thought the TIF situation is different in Minnesota and it is appropriate for this project. Sundberg moved, Zerby seconded, accepting Excelsior's' pay -as- you -go financing and directing staff to continue to work with Excelsior staff to finalize the total amount of Tax Increment Financing need for The Waters of Excelsior Project in Excelsior. Councilmember Labadie stated she thought the project is good but the pay -as- you -go financing is not the best option yet it is not worth stopping the project because of that. Councilmember Siakel concurred. Motion passed 510. D. Accept Professional Services Proposal for the Enchanted and Shady Islands Street Improvement .Project This item was removed from the consent agenda at Councilmember Sundberg's request. Director Brown explained the City of Minnetrista is finalizing its design for the roadways that lead out to the Shorewood portion of the Islands. Council and staff have discussed if it would be beneficial for Shorewood to make repairs to its roadways on the Islands at the same time Minnetrista makes its repairs. Staff asked WSB & Associates to submit a professional services proposal to prepare an Engineering Feasibility Report and Final Design for the Enchanted and Shady Islands Improvement Project. The estimated fee for the Feasibility Report is $43,360 and the estimated fee for the Final Design is $64,270. He noted there are eight roadways involved and some flood plain management that has to happen. Staff is seeking direction from Council on how to proceed. He noted that doing the roadways now means the work would be done a number of years earlier than originally planned for the Street Reconstruction Capital Improvement Program (CIP). The amount slated in the CIP for that use is $509,000. Councilmember Siakel stated Council has discussed using General Fund reserves in excess of the General Fund Balance Policy. One of the uses was to buyout he previous other four owners of the Southshore Center and that has been done. She stated if the roadway improvements are moved from 2023 to 2017 she asked what other improvements would be pushed out ultimately making the repairs more involved and costly when they are eventually done because the repairs were delayed. There is a need to address some of the traffic issues starting at Smithtown Road going along the Minnetonka Country Club, Yellowstone Trail, and Lake Linden Drive corridor. She questioned if there are enough excess reserves to fund the $500,000 in improvements and to fund some of the other needs in the City. Part of the road on the Islands is in good shape because it was redone after the flooding a few years ago. She noted that she understood that there would potentially be cost savings by doing the work at the same time Minnetrista makes its improvements. She asked what other projects would be sacrificed by advancing the improvements on the Islands. Director DeJong explained that the last financial report indicated the 2016 General Fund surplus would have been about $300,000 at the end of 2016 if the buyout of the Southshore Center had not occurred. That buyout wiped out the 2016 surplus but it had no impact the level of excess reserves prior to 2016. He noted Council can decide when it wants to use excess reserves for other projects. He clarified that there has been no commitment to transfer additional funds out of the excess reserves to fund improvements to the Island roadways in 2017. CITY OF SHREWOOD REGULAR COUNCIL MEETING MINUTES February 13, 2017 Page 12 of 14 Councilmember Siakel asked what the level of excess reserves is currently. Director DeJong stated it is about $700,000. Councilmember Labadie stated that this evening Council is only be asked to accept the proposal to prepare the feasibility report and do the final design work for the improvements to the roadways on the Islands. Council is not approving anything toward the $509,000 in improvements. Director Brown confirmed that. Labadie stated the reports would be valuable even if the improvements were done 6 years from now as originally planned. Engineer Hornby stated it is up to council if it wants to have more than the feasibility report prepared. He cautioned that there could be rule updates that occur between when the report is prepared and when the final design work is done Labadie stated she assumes the feasibility report would still be a good reference. She stated disrupting the roadways six years from now when Minnetrista is going to disrupt its portion of Enchanted Lane in 2017 would be s significant inconvenience to the residents. Councilmember Siakel stated the number of residents on the Islands is significantly less than those that are impacted by the traffic issues along the corridor. She questioned spending money on the feasibility report and final design and then not make the improvements. Councilmember Labadie asked if staff has an estimate of what the savings would be to do the roadways on the Islands at the same time as Minnetrista makes its improvements. Engineer Hornby noted there is not a hard core number. The proposal is to put Shorewood's project within the plans already in progress with Minnetrista. Minnetrista has authorized final design. There would a sharing of the costs by putting the plans together and in the bidding costs. Construction costs generally go down for larger quantities and that is estimated to be about 10 percent. The estimate cost for Minnetrista's project is about $850,000 and that is for Tuxedo Road and its portion of Enchanted Lane and one other roadway. In response to a comment from Councilmember Siakel, Engineer Hornby explained the City of Mound made extensive improvements to Tuxedo Road in Mound. He noted during the public information meeting for the Minnetrista project residents commented about the disruption they just went through because of Mound's project and will go through it again for Minnetrista's project. Minnetrista's reclamation project would not be as intense as what Mound did. Shorewood's project is being set up as a reclamation project. He then explained that for Shorewood the first thing that would be done is a coring crew would take cores of the bituminous pavement to determine if the pavement is suitable for a mill and overlay or more suitable for a reclamation project. If it is suitable for reclamation the cost would be about one half of construction. Councilmember Sundberg expressed concern about spending over $100,000 for feasibility and design work when Council is not fully committed to doing the improvements. She stated Council does not know what projects would get pushed out by advancing the improvements on the Islands. She stated during the February 24 Council and staff retreat there will be a broader discussion about traffic and roadway issues throughout the City. She would prefer to wait to make a decision about this work until that has taken place. She asked if that delay would cause a problem. Engineer Hornby stated Minnetrista's project is in the final design stage for its project which includes thee roadways. Councilmember Labadie asked when the feasibility report and final design work have to be done in order to coordinate efforts with Minnetrista. Engineer Hornby explained that he feasibility report would be done first and then that would be presented to Council for its approval. That report would include preliminary design and costs. At that time Council would have to decide if it wants to move forward with final plans and specifications. He anticipated CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES February 13, 2017 Page 13 of 14 Council would consider the feasibility report during its March 27 meeting. He noted for a reclamation project a topographical survey would be done as part of the feasibility study. Director Brown suggested Council approve the feasibility report only during this meeting. Councihnember Sundberg stated she could support that. Sundberg moved, Labadie seconded, accepting the professional services proposal from WSB & Associates to prepare a Feasibility Report for the Enchanted and Shady Islands Street Improvement Project for an estimate fee of $43,360. Motion passed 4/1 with Siakel dissenting. 11. STAFF AND COUNCIL REPORTS A. Administrator and Staff 1. Investment Report Mayor Zerby noted the meeting packet contains a. copy of the Investment Report. Director DeJong stated 2016 investment earnings were about $167,000. They were about $126,000 in 2015. 2. Watermain Report Director Brown stated there had been a complicate Watermain break along County Road 19 near the Xcel Energy site. It has been repaired. Mayor Zerby thanked everyone involved for resolving the issue. 3. Update on Nuisance Violation at 20325 Excelsior Boulevard (Koerting) Director Nielsen noted the nuisance violation at 20324 Excelsior Boulevard has been resolved. 4. Legislative Update Administrator Lerud explained a bill has been introduced in both the senate and house for dedicated funding for local city streets which would allow a $10 surcharge on license tab fees or vehicle title transfers. There is another bill regarding cellular towers and small distributive antenna systems that are proposed to go on either their own antennas in right -of way (ROW) towers or on utility poles. There is a nationwide push from telecommunications companies to have them exempted from local control. The bills have been introduced to the House and Senate. There have not been any hearings on them yet. Senator David Osmek (R) District 33 Chairs the Energy and Utilities Finance and Policy Committee where the bill was introduced. Councilmember Sundberg asked if the city should do anything. Administrator Lerud responded not at this time. Other Engineer Hornby noted the spring weight restrictions go into effect at 12:01 A.M. on Friday February 17, 2017. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES February 13, 2017 Page 14 of 14 Mayor Zerby stated there is still one utility wire that has not yet been buried along Smithtown Road near the Minnetonka Country Club development. Engineer Hornby stated he would check into that. B. Mayor and City Council Councilmember Labadie stated that she and Mayor Zerby toured the Metropolitan Council Environmental Services' (MCES) Metro Wastewater Treatment Plant located in the City of St. Paul on February 10. It serves 65 communities, 7 counties, and 1.8 million people. There are approximately 610 mile of sewer pipe that funnel into the Plant. There are eight treatment plants in total. The Plant they toured is the mothership for the eight plants. The MCES Community Relations Specialist informed her that tours of the Metro Plant are offered up to two times a month on weekdays during the day. The minimum age for tours is middle school. Tours are also conducted at the Eagles Point Plant in the City of Cottage Grove and the Blue Lake Plant in the City of Shakopee. If anyone is interested in taking a tour there will be information at City Hall. The Blue Lake Plant services the South Lake area. Mayor Zerby explained he attended the Lake Minnetonka Communications Commission (LMCC) meeting on February 9. A second cable company applied to get into the LMCC Franchise Agreement. Mediacom does not have an exclusive with the LMCC franchise. Frontier Communications is getting into the video business. Frontier would serve largely independents in the northern tier suburbs that are part of the JPA that have been underserved by Mediacom because of the lower density in that area. He then stated he attended the Regional Council of Mayors monthly meeting earlier in the day. He learned there has been a large decline in condominiums, townhomes and cooperatives over the last few years in Minnesota. Part of the reasons is because of the litigation brought against developers. He was provided with a resolution that either Ile could sign or Council could approve. Residents want affordable housing. Councilmember Labadie stated in response to questions from residents she approached Minnetonka Community Education Executive Director Tim Litfin about adding one or two more age groups in the Firecracker 5k race. He checked into it and informed her that either one or two age groups will be added for this year based on participation the last two years. She also approached the Excelsior -Lake Minnetonka Chamber of Commerce Executive Director Laura Hotvet about doing the same. The Chamber sponsors the Luck o' The Lake 5k race and the Apple Day 5k race. The three races are the Lake series. 12. ADJOURN Sundberg moved, Johnson seconded, Adjourning the City Council Regular Meeting of February 13, 2017, at 8:42 P.M. Motion passed 5/0. RESPECTFULLY SUBMITTED, Christine Freeman, Recorder S cat Zerb , ayor ATTEST: Jean Panchyshyn, Cit Cler c