02-27-17 CC Reg Mtg MinutesCITY OF SHOREWOOD
CITY COUNCIL REGULAR MEETING
MONDAY, FERUARY 27, 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, Labadie, 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 Hornby
Absent: None.
B. Review Agenda
Sundberg moved, Siakel seconded, approving the agenda as presented. Motion passed 510.
2. APPROVAL OF MINUTES
A. City Council Work Session Minutes of February 13, 2017
Sundberg moved, Labadie seconded, Approving the City Council Work Session Minutes of
February 13, 2017, as presented. Motion passed 5/0.
B. City Council Regular Meeting Minutes of February 13, 2017
Sundberg moved, Johnson seconded, Approving the City Council Regular Meeting Minutes of
February 13, 2017, as amended in Item 10.C, Page 10, Paragraph 5, Sentence 3 change "The
Waters project is needed and the area is good for it." to "The Waters project is needed and it is
good for the area." Motion passed 510.
3. CONSENT AGENDA
Mayor Zerby reviewed the items on the Consent Agenda.
Siakel moved, Labadie seconded, Approving the Motions Contained on the Consent Agenda and
Adopting the Resolutions Therein.
A. Approval of the Verified Claims List
B. Adopting Resolution No.17 -015, "A Resolution Regarding Amendment to the Lake
Minnetonka Communications Commission Joint powers Agreement."
C. Adopting Resolution No.17 -016, "A Resolution Supporting Dedicated State Funding
For City Streets."
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February 27, 2017
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Motion passed 510.
4. MATTERS FROM THE FLOOR
Curt Nelson 6145 Pleasant Avenue, explained that last fall he and his wife hired an attorney regarding an
easement situation on their property. Earlier in the day their attorney suggested he update Council about
the situation. Mattamy Homes had contacted them and requested an easement it needed for the
development of the Minnetonka Country Club property. They started negotiations with Mattamy about
one and one -half years ago. Last fall both parties reached an agreement on how Mattamy would restore
their property in exchange for the easement. On January 30, 2017, is when they first received the
agreement from Mattamy for them to sign. He informed Mattamy that his bank needed a couple of days to
sign the consent of mortgage.
On February 1, 2017, work started on their property; Mattamy started cutting down trees. On February 2,
2017, he contacted Mattamy and informed a representative that he was ready to meet and to deliver the
easement and consent of mortgage. Both parties also needed to sign the agreement. They heard nothing
from Mattamy. Mattamy continued working on his property. They put up with four weeks of excavating,
tree removal and digging. Equipment had been running all night long and they were not shielded from the
noise. Mattamy encroached outside of the easement to do some of its work. If Mattamy had no easement
it had no right to be on the property. Their attorney encouraged them to call Mattamy and tell them to get
off of his property.
On either February 21 or 22 he filed a formal complaint with Administrator Lerud expressing their
concerns. He also let the Mattamy representative know that he did that. The representative apologized
and offered to get them a gift certificate to go out to dinner. Their attorney indicated that he did not think
Mattamy wanted to work with them based on its response.
Mr. Nelson noted that earlier in the day he call Mattamy and asked that Mattamy's equipment be removed
from his property until the agreement is resolved. There is still a piece of equipment on their property.
Mayor Zerby thanked Mr. Nelson for bringing that to Council's' attention and he expressed his
disappointment with Mattamy.
Attorney Keane stated it was unclear to him if this is a private dispute over an easement that was not
solidified before the developer started work on his property. He thought Mr. Nelson was being well
advised by his attorney. He was not sure what role the City has in trying to help resolve the situation.
Mr. Nelson stated Mattamy has excavated on his property, filled it in, excavated it again and filled in
again.
Mayor Zerby stated he hoped staff would continue to investigate this and find out if there is any way the
City can help.
Mr. Nelson stated both parties had agreed upon on how Mattamy would restore the Nelsons' property. As
part of signing the easement Mattamy was also going to restore the front of their property which is right -
of -way. They want the front of their property to look like the side of their property where the easement is.
Mattamy had hired a landscaper to do the work.
CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES
February 27, 2017
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Councilmember Sundberg expressed concern about Mattamy's behavior. She asked staff to look into this
closely, particularly because of Mattamy's plans to divest of its development projects in Minnesota.
Mayor Zerby noted that Shorewood enforces its ordinances on a complaint basis. Therefore, the police
department should be contacted if Mattamy is violating ordinances.
Councilmember Siakel asked if Mattamy has been working outside of approved construction hours. Mr.
Nelson stated it has not. Mr. Nelson stated that the previous week Mattamy had equipment running all
night pumping water out of a large deep hole. Mattamy did not shield the equipment. The first few weeks
they did not say anything about it because they just wanted the work to get done, but it has been going on
too long.
Councilmember Labadie asked if any other property owners in the area have a similar problem. Mr.
Nelson stated easements are not needed from them.
5. PUBLIC HEARING
6. REPORTS AND PRESENTATIONS
PARKS
8. PLANNING
A. Report by Marc Riedel on the February 7, 2017, Planning Commission meeting.
Planning Commissioner Riedel reported on matters considered and actions taken at the February 7, 2017,
Planning Commission meeting (as detailed in the minutes of that meeting).
Councilmember Labadie asked if the food truck discussion was only related to City property.
Commissioner Riedel stated there was some discussion about high school events.
B. Conditional Use Permit for Accessory Space
Applicant: Wayne Hartmann and Michelle Letendre
Location: 27460 Maple Ridge Lane
Director Nielsen stated that during Planning Commissioner Riedel's report on the February 7, 2017,
Planning Commission meeting (agenda Item 8.A) he thoroughly explained Wayne Hartmann's and
Michelle Letendre's request for a conditional use permit for accessory space over 1200 square feet for
their property located at 27460 Maple Ridge Lane. He noted that Mr. Hartmann was present. He also
noted the Planning Commission unanimously recommended Council grant the request.
Councilmember Labadie stated that during Commissioner Riedel's report he indicated that there are a
number of properties in that area that do not conform to the front yard setback requirement. She asked. Mr.
Hartmann what year his house was constructed noting she was just curious. Mr. Hartmann stated in 1974.
Sundberg moved, Labadie seconded Adopting Resolution No. 7-017,,A Resolution Granting a
Conditional Use Permit for Additional Accessory Space to Wayne Hartmann and Michelle
Letendre, at 27460 Maple Ridge Lane."
CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES
February 27, 2017
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Councilmember Johnson stated the problem of the front yard setback nonconformity in that area has been
addressed before. It is being handled on a case by case basis
Motion passed 510.
9. ENGINEERING/PUBLIC WORKS
A. Xcel Energy for the Chaska Road Power Burial ( Oppidan)
The Oppidan tax increment financing (TIF) project includes burying the overhead power line in front of
the plat as part of the public improvements. Staff has been working with Xcel Energy to get the design
work done for that. Xcel will do the design work and bury the line. To have that done the City has to pay
Xcel a $5,000 design fee which would be reimbursed if the project moves forward. Council is being asked
to accept the statement of work provided by Xcel as an agreement to begin the design work and to
authorize the payment of the $5,000 fee.
Councilmember Siakel asked if any other properties in the neighborhood would benefit from burying the
line. Engineer Hornby explained for the proposed development burying the line provides more room for
landscaping. For the residential properties connected to that line a power pole would still be required
somewhere. He noted that switching an existing overhead service outside of the project area is not part of
the project.
Councilmember Sundberg asked if it is common practice for Xcel to charge for the design. Engineer
Hornby responded yes.
Siakel moved, Johnson seconded, accepting the proposal from Xcel Energy for design services for
the burial of powerlines on the west side of Chaska Road from Highway 7 to Mayflower Road and
authorizing the payment of a $5,000 design fee. Motion passed 5/0.
10. GENERAL/NEW BUSINESS
A. Rental Housing Violation Administrative Enforcement Policy
Director Nielsen explained that in 2016 there had been an incident with a rental housing property that the
City ended up taking to an Administrative Enforcement Hearing, The City prevailed on that issue with the
Administrative Hearing Officer. After that the Planning Commission recommended an amendment to the
City Code that would prohibit short-term rentals. What is being considered now is a follow up to that.
Staff is proposing stiffer penalties for violations of the rental housing Code. The fee for the initial offense
would be increased to $300 from the current $200 making it similar to a zoning violation. The fee for a
subsequent offence would be $1,000. A $200 or $300 fee does not do much to get the attention of the
violator given the amount of money the renter gets for the rentals.
He noted the meeting packet contains a copy of a draft ordinance amendment to the Administrative
Enforcement Code reflecting the fee changes.
Councilmember Labadie stated the enforcement of the City's ordinances is complaint driven. She asked if
subsequent offenses would also be complaint driven. Director Nielsen stated not necessarily; there are
instances when they are monitored by staff.
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February 27, 2017
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In response to a comment from Mayor Zerby, Director Nielsen clarified the subsequent violations $1,000
fee applies to Class B offenses only.
Scott Owens 26040 Wild Rose Lane, stated he does not think the Council, the Planning Department and
Planning Commission make ordinances after talking to people. He then stated during the two days he
thought were wasted on an appeal hearing last fall of zoning violations and a citation for the 26040 Wild
Rose Lane property the property owners' attorney asked Director Nielsen if he had spoken to him or his
wife or the property owners' about the complaints the City was getting from residents living near the
26040 property. Director Nielsen responded no. He referred to a letter about zoning violations notice the
City sent out last year which stated that the city would never issue a rental license to them. He said they
have a rental license. He mentioned other things about the letter. He went on about how he thought the
City did not adequately communicate with residents and he and his wife during that time. He then stated
he and his wife were in a meeting with representatives from the City of Minneapolis when there was
discussion about how to make short-term rentals work rather than prohibit them like Shorewood does.
He explained that he and his wife have had over 3000 guests, mostly family, over the 8 years since they
have been involved in the short-term rental business. Yet no one at the City asked them how to make
short -term rentals work. He stated no other City has come down on them like Shorewood did.
He stated last year when the City was receiving complaints about the 26040 property being rented out and
about the renters the complainants never called the people who owned the property even though they had
their phone numbers. They also had his phone number but did not call him.
He thought there has been a lack of communication during that process as well as about short -term
rentals.
He stated there are a lot of positive things short-term rentals can bring to the City. Some of them can be
found on their website. One example is they would provide a place for people who are temporarily
displaced from their home to stay.
He noted they have not rented to anyone for less than 30 days since he was before Council last November.
Siakel moved, Sundberg seconded, Approving Ordinance NO. 539, "An Ordinance Titled License,
Permit, Service Charges and Miscellaneous Fees" which increases the charge /fee for a Class B
violation of the rental housing regulations to $300 (from $200) and sets the fee for subsequent
violations at $1000.
Councilmember Labadie asked if there are other violation penalties that go as high as $1000 for
subsequent offenses. Director Nielsen stated only if they go out of the administrative enforcement process
and into the courts because then they become a misdemeanor and that penalty is $1000.
Motion passed 510.
B. City Authority Over Rights -of -Way
Administrator Lerud explained that during Council's February 13 meeting he updated Council on
legislation that would pre -empt local authority to manage right -of -way (ROW) access for certain wireless
communications equipment. Staff recommends Council adopt the resolution reaffirming City authority to
manage public rights -of -way.
CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES
February 27, 2017
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Siakel moved, Sundberg seconded Adopting Resolution No. 7 -018 "A Resolution Reaffirming City
Authority to Manage Public Rights -of- way."
Attorney Keane noted League of Minnesota Cities General Counsel Tom Grundhoefer passed away
unexpectedly on February 23. He was the primary liaison to the Legislature and the liaison on this issue.
He said he would be greatly missed.
Motion passed 510.
C. Making Planning Commission Appointments
Administrator Lerud stated there is a one -year and a three -year term open on the Planning Commission.
Prior to this meeting Council interviewed two candidates.
Councilmember Labadie stated both candidates were good. Ms. Janet Sylvester had a positive energy. Mr.
Marc Riedel has done a good job in the year he has served as a Commissioner. Council thought the three -
year term should go to Mr. Riedel.
Councilmember Johnson stated he served with Mr. Riedel on the Commission during Mr. Riedel's term.
He found Mr. Riedel to have impeccable logic and it was a pleasure to work with him.
Labadie moved, Siakel seconded, Adopting RESOLUTION NO 17 -019 "A Resolution Making the
Appointments of Janet Sylvester (March 1, 2017 - February 28, 2018) and Marc Riedel (March 1,
2017 - February 28, 2020), to the City of Shorewood Planning Commission." Motion Passed 5/0.
D. Retreat Follow -up
Administrator Lerud stated he had provided Council with a summary of the recommended actions
identified during the February 24 Council and staff retreat.
Councilmember Sundberg asked if Council could get back to him on their thoughts about the summary.
11. STAFF AND COUNCIL REPORTS
A. Administrator and Staff
1. Monthly Budget Report
Mayor Zerby noted the meeting packet contains a copy of the January 2017 . Monthly Budget Report.
Councilmember Johnson stated the staff memorandum states "Permits are likely to stay high as the
Minnetonka Country Club property is developed." He asked if that is still the case with the divesture of
Mattamy's (the developer) developments in Minnesota and the fact that the model home has not been
open since the divestiture announcement came out.
Director DeJong stated he thought there is demand for new homes in Shorewood so there should be
continued development but maybe at a slower place. Building permit revenue has been high even without
much development on the MCC site. There is also a lot of interest in remodeling in the area and that will
continue.
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February 27, 2017
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2. Galpin Lake Road Trail Funding Update
Engineer Hornby stated the City had applied for federal funding through the Metropolitan Council for the
Galpin Lake Road Trail segment construction. There were seven applications for the category of
pedestrian facilities. The Shorewood project scored the lowest of the seven primarily because of the cost
per foot. The cost is high because of the need for retaining walls. The City can pursue other grant
opportunities when they come.
Mayor Zerby asked if there is any opportunity to get funding from the Minnesota Department of
Transportation (MnDOT) for the portion of the sidewalk that gets people through the stoplight and across
Highway 7. Engineer Hornby stated there is a project coming up with MnDOT so he will contact
MnDOT's area manager about this. Zerby noted Excelsior's portion had been funded by MnDOT. Hornby
stated that was funded at a time when there were not a lot of applications.
Other
Director Brown stated that during Council's February 13 meeting two residents presented Council with a
petition requesting traffic calming on Mill Street. In 2013 council approved a policy for addressing speed
complaints. The policy states that for those complaints received during winter months those will be
processed by May 31 because the evaluation process requires putting out traffic count tubes. Tubes cannot
be out during the snow plowing season. He noted he had asked the Police Chief for the data gathered
during a speed enforcement initiative.
Engineer Hornby explained that a portion of the watermain extension project for the Oppidan
development started on February 20. The crews are boring the watermain across Highway 7. The area is
located within Minnesota Department of Transportation's right -of -way (ROW).
Director DeJong stated he is continuing to work on 2016 year -end items for the 2016 audit. He noted he
resent an invoice to Mattamy Homes for services the City provided to Mattamy. Mayor Zerby asked what
the terms were on that. DeJong stated 30 days.
Administrator Lerud stated the Minnesota Board of Peace Officer Standards and Training (POST Board)
did a compliance review of the South Lake Minnetonka Police Department's (SLMPD) employee training
and department policies and the SLMPD passed it.
B. Mayor and City Council
Councilmember Labadie asked Administrator Lerud if the SLMPD is still in need of more officers.
Administrator Lerud responded yes.
Mayor Zerby asked if the stormwater runoff is under control at the large development site along
Edgewood Road. Director Nielsen stated to date it has been okay and noted that staff monitors the
situation.
Zerby then asked if the spring weight restrictions are being enforced. Director Brown stated the police
have been very active in doing that.
12. ADJOURN
CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES
February 27, 2017
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Labadie moved, Sundberg seconded, Adjourning the City Council Regular Meeting of February 27,
2017, at 7:52 P.M. Motion passed 510.
RESPECTFULLY SUBMITTED,
Christine Freeman, Recorder
ATTEST:
City A`10!!i Irator, Greg Lerud