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03-13-17 CC Reg Mtg MinutesCITY OF SHOREWOOD CITY COUNCIL REGULAR MEETING MONDAY, MARCH 13, 2017 MINUTES 1. CONVENE CITY COUNCIL REGULAR MEETING COUNCIL ii P.M. Mayor Zerby called the meeting to order at 7:02 P.M. A. Roll Call Present. Mayor Zerby; Councilmembers Johnson, Labadie, and Sundberg; Attorney Keane; City Administrator Lerud; Finance Director DeJong; Planning Director Nielsen; Director of Public Works Brown; and, City Engineer Homby Absent: Councilmember Siakel B. Review Agenda Sundberg moved, Labadie seconded, approving the agenda as presented. Motion passed 4/0. .11alattoly.11i A. City Council Work Session Minutes of February 27, 2017 Labadie moved, Sundberg seconded, Approving the City Council Work Session Minutes of February 27, 2017, as presented. Motion passed with Johnson abstaining due to his absence for most of the meeting. B. City Council Special Meeting Minutes of February 27, 2017 Labadie moved, Sundberg seconded, Approving the City Council Regular Meeting Minutes of February 27, 2017, as presented. Motion passed 4/0. C. City Council Regular Meeting Minutes of February 27, 2017 Labadie moved, Sundberg seconded, Approving the City Council Regular Meeting Minutes of February 27, 2017, as presented. Motion passed 4/0. Mayor Zerby reviewed the items on the Consent Agenda. Sundberg moved, Johnson seconded, Approving the Motions Contained on the Consent Agenda and Adopting the Resolutions Therein. A. Approval of the Verified Claims List CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES March 13, 2017 Page 2 of 15 B. Adopting Resolution NO. 17 -020 "A Resolution Adopting The Renewable Energy Implementation Plan for the City of Shorewood." C. Adopting Resolution NO. 17 -021 "A Resolution Approving Plans and Specifications and Authorizing Advertisements for Bids for 2017 Crackfill and Seal Coat Project, City Project 17 -01." D. Accept Donation from the American Legion Post # 259 E. Shorewood Yacht Club Multiple Dock Facility License (This item was removed from the consent agenda.) Councilmember Sundberg asked that Council be provided with a quarterly progress update on the Renewable Energy Implementation Plan and that there be a little greater emphasis on the GreenStep Cities Program. Councilmember Labadie noted that the American Legion Post #259 made a $200 voluntary donation to Safety Camp. It is greatly appreciated by the City. She stated the per boat slip fee is $2.00 for the Multiple Dock Facility License. She asked if that is comparable with the fee for other private yacht clubs. Nielsen stated he was not sure and noted the fee had not been changed for quite some time. He noted staff will research that. Labadie noted that she does not feel comfortable approving that this evening; she would like staff to research how the City's fee compares to other private yacht clubs and marinas. Councilmember Johnson supported that request. Motion passed 4/0. There were no matters from the floor presented this evening. Mayor Zerby noted that several members of the Boy Scouts were in the audience. He asked their leader to explain why the Scouts were present. Peter Linden, the Merit Badize Counselor for Troup 424 Citizen in the Community Merit Badge, noted that one of the requirements for the Scouts is to attend a local City Hall meeting and comment on what went on at the meeting. He stated paying attention is important for the Scouts this evening. Mayor Zerby asked how many Scouts lived in Shorewood. Three raised their hands. Others indicated they were from the Cities of Chanhassen and Minnetrista. 7. PARKS A. Report by Justin Mangold on the February 28, 2017, Park Commission Meeting Park Commission Chair Mangold reported on matters considered and actions taken during the February 28, 2017, Park Commission meeting (as detailed in the minutes of that meeting). CITY OF SHORE WOOD REGULAR COUNCIL MEETING MINUTES March 13, 2017 Page 3 of 15 Councilmember Labadie noted she was the Council Liaison to the February 28 meeting. She explained that the information for Item 7.0 on the agenda contains a copy of a photograph of a practice wall for a lacrosse field in the City of Hopkins. It is two walls with a gap between them. What is being proposed for Shorewood is one wall that would be 10 feet high. If the gap in between the two walls in Hopkins were removed that would be what has been proposed for Shorewood. She then noted the Park Commission was very receptive to including various kinds of playground equipment including equipment that would be geared toward special needs children and toward various ages. She thought the Park Commissioners were extremely open minded and considered equipment that would satisfy the long -term needs of the City. She thanked the Park Commission for its service. Councilmember Sundberg asked what the condition is of the tennis courts near City Hall. Chair Mangold stated the firm that generally resurfaces the courts has indicated that it would not resurface them again. He noted that the fence posts have heaved away from the court. B. Approval of Badger Field User fees Director Nielsen noted that Badger Park User Fees slipped through the cracks at the end of 2016. The Park Commission discussed them in November 2016 and made a recommendation to increase the user fee for the new artificial turf field in Badger Park. He also noted that the Minnetonka Lacrosse Association indicated that Shorewood's fees were quite a bit lower compared to what other cities charge. The City's previous fee was $50 per day. After researching what other cities charge the recommendation is to increase the fee to $50 per hour and $210 per day. The Association thought those fees would still be reasonable. Staff recommends Council approve the increase in the fees. Councilmember Labadie stated if someone wants to use the artificial turf field without reserving it she sked if that would be free. Director Nielsen confirmed that. Labadie then stated that if someone comes to use the field because they reserved it she asked if the person /group without a reservation would have to leave. Nielsen also confirmed that. Labadie explained when the City imposed a SOC fee to use its ice rinks the City basically lost Minnetonka Youth Hockey because the organization was willing to drive to other nearby cities to avoid paying the fee. She expressed concern that charging the proposed rates might force sports organizations to other cities. She commented that may be appropriate for the use of an artificial turf field that some other cities may not have. She clarified that she does not want to discourage organizations from reserving the artificial turf field. Director Nielsen stated the proposed update is modeled after the City of Plymouth's ordinance noting the City looked at ordinances for six cities. The proposed increase is based on the Association's experiences for where they play. Mayor Zerby noted Plymouth is the only City of the six cities researched that has an artificial turf field. Councilmember Sundberg asked if the Association was comfortable with the proposed fees. Director Nielsen confirmed that. Mayor Zerby asked if staff has spoken with football organizations that may use the artificial turf field. Director Nielsen clarified staff has not and noted that the organizations pay the SOC fee so they do not pay the rates being proposed. The fees are for outside organizations that want to use the City's artificial turf field. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES March 13; 2017 Page 4 of 15 Park Commission Chair Mangold stated the fees proposed are only for events such as an extra tournament on a weekend. He noted the City charges a SOC fee for every sport but hockey and the other sports have not been scared away. Sundberg moved, Labadie seconded, Approving ORDINANCE NO. 540 "An Ordinance Titled License, Permit Service Charges and Miscellaneous Fees" regarding increasing the hourly fee to $50 per house and adding a daily fee of $210 for the use of the Badger Park artificial turf field. Motion passed 4/0. C. Approval of Practice Wall for Lacrosse at Badger Park Director Nielsen explained the Minnetonka. Lacrosse Association has asked for permission to construct a lacrosse practice wall adjoining the practice field in Badger Park. There has been a lot of discussion about where the wall should be located. The proposed location is the northwest corner of the practice field. It is likely there would be some type of storage element on the back of a building. The wall would be 20 feet long. The Association's representative at the Park Commission meeting indicated the wall would be 8 feet tall. The Commission recommended the Association provide an escrow in the amount of $2000 for landscaping on the west side of the wall that faces the rest of the Park facilities. The players would use the wall to shoot, the ball off of the wall and practice catching it. There had been some concern about errant balls going over the wall. There would be quite a bit of space and some landscaping that would keep the ball from going near the playground equipment. The Commission recommended approval of constructing the practice wall. The Association would have to overcome whatever soil conditions there are in that location. Director Brown expressed concern about what will happen when the wall will have to be repainted to cover graffiti. Mayor Zerby expressed hope that surveillance equipment similar to that used in Freeman Pack could be used to help deter that. Brown stated that would be helpful after the fact but it would be difficult to cover the graffiti on that type of surface after the fact. Councilmember Sundberg asked if the surface of the wall would be a block surface. Director Nielsen explained it would be concrete block. Director Brown stated it appears it would have somewhat of a decorative face. Nielsen stated for the wall in Hopkins it was a plain concrete block. He explained that in his staff report he recommended using decorative block (e.g.; exposed aggregate or rock face block or exposed aggregate block) on the west side of the wall that faces the rest of the Park. The Commission did not include that in its recommendation. The Association wants the flat block surface. Mayor Zerby asked if a textured or a flat surface is better to try and cover the graffiti. Director Brown noted the textured surface absorbs the paint well. Councilmember Labadie asked Director Brown what type of surface would be less absorbent of graffiti. Brown explained the school districts have learned that there is an anti - graffiti coating that can be put on brick structure, but the brick has to be recoated regularly. In response to a question from Labadie, Brown explained that any improvements to the Park are donated to the City without any strings attached. Labadie stated it may be premature for Council to approve this before researching alternative surfaces for the wall, noting the Association wanted to construct the wall as soon as possible. Councilmember Sundberg stated she like Director Nielsen's idea of having a more aesthetically appealing surface on the west side of the wall. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES March 13, 2017 Page 5 of 15 Councilmember Labadie asked for an estimate of what it would cost to remove or cover the graffiti. Director Brown explained there is a process for removing graffiti from those types of surfaces called soda ash blasting and it would cost $300 — $700 each time. Labadie asked if the removal cost would vary based on the type of surface. Brown responded yes. Mayor Zerby asked if there has been a graffiti problem at any City -owned facilities. Director Brown stated the one target has been the storage garage for the Southshore Center. Zerby asked if that surface cleans up easily. Brown stated it usually gets repainted. Zerby asked Director Nielsen if he could provide Council with more information on surface types for its March 27 meeting. Nielsen confirmed he could. D. Approve Professional Services Proposal for Badger Park Phase 2 Director Nielsen noted that the original Phase 1 for Badger Park improvements included the field and the parking lot; that did not happen. He turned this item over to Engineer Hornby. Engineer Hornby noted the memorandum for this item outlines what the proposal includes. He explained that because there is a building that must be demolished an asbestos and regulated material survey must be done. If those hazardous materials are found those items would have to be removed by specialty methods before the demolition. The services also include project management and coordination as well as coordination with utility companies. After the building is demolished a new power service line must be installed for field lighting; the control panel would be located in City Hall. The final grading of the parking lot design, storm sewer design, pond design, and wetland permit coordination are included in the proposal. The wetland coordination is for the ditch which the Minnehaha Creek Watershed District considers a wetland. The best management practices for the design and construction documents, preparation of plans and specifications, coordination of advertisement and bidding, and construction observation and survey services are also included in the scope of services. The design services for the preparation of plans and specifications and bidding documents will cost about $46,259. The cost for construction phase services will cost about $52,766. Once plans and specifications are prepared they will come back to Council for approval and bidding. If the bids do not meet budgetary requirements the project would not move forward and therefore the construction services would not be needed. The design for the sidewalk that would connect the Southshore Center and City Hall would be included, but not the internal trails to the Park or the second crossing of the ditch. Those items could be added back. Engineer Hornby noted the costs for the improvements were evaluated and the total is more than what was budgeted. Administrator Lerud and Director DeJong will talk about that later on the agenda. That overage could be addressed with the use of surplus General Fund reserves. Mayor Zerby explained that for years there has been discussion about installing fiber optics between City Hall and the Southshore Center. He asked if that is part of what has been proposed. Engineer Hornby clarified not at this time. Zerby noted that he and Administrator Lerud had discussed that and he thought it would be beneficial to do that as part of this project. Director Brown stated it would at least be worthwhile to bury the conduit. Zerby stated he thought there was conduit under County Road 19. Engineer Hornby stated he could add that to the proposal. Administrator Lerud explained that when the budget was developed at the end of 2016 it was estimated there would be $700,000 available in reserves in excess of the General Fund Balance Policy requirement. Staff is seeking direction on how to use the excess. The options proposed are covered under Item I0.13 on the agenda. It includes allocating $200,000 toward the completion of Badger Park Phase 1.5 and Phase 2 CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES March 13, 2017 Page 6 of 15 improvements. The original budget was about $200,000 and the current estimate is $400,000. That additional $200,000 would allow the Badger Park Improvements Project currently under way to be completed in 2017. To make the improvements to the roadways originally included in the 2017 Capital Improvement Program (CIP) would cost about $475,000 more than what was originally budgeted for. The improvements to roadways on the Islands would also be more extensive than originally anticipated. Mayor Zerby clarified that at this time Council is being asked to approve the Professional Services Proposal for the preparation of construction bidding documents (plans, specifications and bidding) for Badger Park Improvements and the Asbestos and Regulated Material Survey for an estimated amount of $46,259. Councilmember Labadie stated Council had approved the feasibility study for the roadways on the Islands. Engineer Hornby confirmed that. Labadie noted that Council has not approved the construction costs for repairs to the roadways on the Islands. Hornby confirmed that also. Administrator Lerud clarified that the only part of that feasibility report that has been done is the coring and the cost to do that was much less than the cost to do the full feasibility report. The feasibility report has been halted. Labadie asked if the feasibility report has been presented to Council. Engineer Hornby clarified that has not even been started. Park Commission Chair Mangold stated he thought the Badger Park improvements need to be made. He expressed frustration with the current numbers presented when compared to those presented in 2014. Although, the concept or the Park has not changed the current costs are about one -third higher. He noted the 2014 budget to improve the parking lot including the field was about $75,000. Now the estimate is $100,000 not including the field. The costs for construction are always higher than what had been estimated. Engineer Hornby stated he reviewed the original budget for the second part of Phase 1 and some amenities from Phase 2. The original amount the landscape architect prepared for Concept 1.5 in 2014 came to about $506,000. From an engineering perspective, WSB & Associates ran its own 2017 numbers and came up with $536,000. That would account for construction costs only and possibly some indirect costs. He does not think that is unreasonable given the time period that has gone by. He noted that he is not aware of where the $400,000 came from for Phase 1. He stated he thought the first phase was about $600,000. The field portion was about $100,000 and that was for a natural field with no special subgrade. Another $100,000 was spent with the Minnetonka Lacrosse Association for the artificial turf. He noted that he is looking at what is remaining and that is $536,000. He explained an attempt was made to trim down enough amenities to get the cost down. Mayor Zerby asked Director Nielsen if the City has enough information to solicit a bid from another firm. He questioned if it would it be worthwhile to seek a bid from another firm. Councilmember Labadie stated as the current Council Liaison to the Park Commission she explained that what Chair Mangold has voiced is not just his personal opinion. The frustration is felt by all of the Commissioners. The Commission has diligently researched what to do with Badger Park. Yet things do not seem to be moving forward. She noted that she has suggested to Director Nielsen that Council and the Commission should meet more than once a year. She recommended Council and the Commission reach an agreement on what is going to be done. Mayor Zerby clarified that he was not recommending soliciting another bid. He noted that in the past he has recommended that the plan be advanced. He explained that part of the reason for that not happening is the Council did not want to make that investment until the ownership issue of the Southshore Center had CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES March 13, 2017 Page 7 of 15 been resolved. He noted that he has not changed his commitment to completing the improvements to Badger Park. Councilmember Sundberg suggested the City seek another bid so that there is a competitive bid with WSB. Engineer Hornby stated if the City wants to solicit RFPs (request for proposals) then WSB would withdraw its bid because WSB's numbers are now public. He noted the engineering fees are not driving the cost; construction costs are. He explained that when WSB bids things like this out it bids it hourly with a not to exceed amount. There are contingencies in the WSB proposal that a competitor in an RFP format would not know. Mayor Zerby reiterated he was not suggesting the City seek another bid. He noted he appreciated what Engineer Hornby stated. He stated that maybe going forward there should be a way to compare pricing. Councilmember Sundberg stated that in the future the City needs to seek competitive bids. Councilmember Johnson concurred. Councilmember Johnson suggested that things such as decorative pavement in the drop -off area at the Southshore Center should be delayed until there is a better understanding of what the plans for the Center are. Councilmember Sundberg concurred. Mayor Zerby stated he likes the decorative pavement. Engineer Hornby explained that most of the decorative items are in the pavement areas between the sidewalk and the Center. To do them later would require cutting into the pavement section. Chair Mangold stated from his perspective there is a large concept plan where the type decorative pavement can be refined. Ultimately, the turnaround area is needed for traffic flow. The decorative pavement would go into the roundabout area. Zerby moved, Sundberg seconded, accepting the Professional Services Proposal from WSB & Associates for Badger Park Phase 2 improvements subject to adding the conduit design for the future expansion of fiber optic lines to the Southshore Center. Motion passed 410. Councilmember Labadie recapped for the Scouts what has occurred during the meeting up to this point on the agenda. She then stated she the Scouts have heard enough to write their report for their merit badge noting the time and that it was a school night. S. PLANNING A. Report by Dustin Maddy on the March 7, 2017, Planning Commission meeting. Planning Commission Chair Maddy reported on matters considered and actions taken at the March 7, 2017, Planning Commission meeting (as detailed in the minutes of that meeting). Attorney Keane asked if there would be any 60 day delay issues with waiting for the traffic report. Director Nielsen stated the applicant will be sent a 60 -day letter. B. Conditional Use Permit for Accessory Space in Excess of 1200 Square Feet Applicant: Bradley Hauser Location: 5640 Covington Road CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES March 13, 2017 Page S of 15 Director Nielsen explained that last year, Mr. Bradley Hauser built a new home at 5640 Covington Road. At that time, he received a conditional use permit (C.U.P.) for accessory space in excess of 1200 square feet of floor area. In that process he was required to remove two nonconforming sheds from the property. He now proposes to replace one of those sheds with a new, 12 by 20 foot, conforming shed, which requires a new C.U.P. He displayed a graphic showing the location of the proposed shed. With regard to the analysis of the case, Nielsen noted Section 1201.03 Subd. 2.d.(4) of the Zoning Code prescribes criteria for granting a C.U.P. for accessory space over 1200 square feet. He reviewed how the applicant's plan complies with the criteria. 1. The total area of accessory space (1551 square feet) does not exceed the floor area above grade of the new home (3422 square feet — main level). 2. The total area of accessory space does not exceed ten percent of the minimum lot size for the R- 1A/S zoning district (.10 x 40,000 = 4000 square feet). The proposed shed complies with setback requirements for the R -lA/S zoning district and the resulting total hardcover on the site is well below the 25 percent maximum. 4. The architectural character of the proposed shed is considered to be consistent with the character of the existing home. It will be tucked into a small clearing in the trees on the south side of the driveway, well away from structures on adjoining properties. Nielsen noted the Planning Commission held a public hearing on the request during its March 7, 2017, meeting and it unanimously recommended granting the C.U.P. Sundberg moved, Labadie seconded, Adopting RESOLUTION NO. 17 -022, "A Resolution Granting a Conditional Use Permit for Additional Accessory Space to Bradley Hauser, 5640 Covington Road." In response to a question from Councilmember Labadie, Director Nielsen explained the proposed 12 by 20 foot shed when combined with other structures on the site would still comply with maximum hardcover requirement for the zoning district. Director Nielsen noted the applicant is going to have an overhead door on the new shed. The photograph included in the meeting packet shows a split door that swings out to the sides. Councilmember Johnson asked if the shed that had been down by the water had a pump in it. Director Nielsen responded no and explained the applicant obtained a historic preservation classification for an old pump house that is tucked into the hillside as part of the original C.U.P. in 2016. Motion passed 4/0. C. Conditional Use Permit for Accessory Apartment Applicant: Matt Sobraske Location: 25855 Smithtown Road Director Nielsen explained that Matt Sobraske has applied for a conditional use permit (C.U.P.) to build an accessory apartment on the rear of his home which is located at 25855 Smithtown Road. The apartment would house his mother. About three or four years ago Council approved an amendment to the CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES March 13, 2017 Page 9 of 15 Zoning Code Section 1201.03 Subd. 22. which provides for accessory apartments by C.U.P. The accessory apartments are intended to increase the diversity of housing options for residents (especially seniors), encourage better utilization of the existing housing stock, while protecting the stability and character of single- family residential neighborhoods. He highlighted how the request complies with a few of the criteria listed in the Ordinance for that type of structure. ➢ The apartment would be located entirely at the rear of the existing house and therefore there would be no new front entrance to it. Only a small dormer would be showing from the front of the house. ➢ The size of it would meet all of the minimum and maximums that are allowed for accessory structures. Nielsen noted the Planning Commission held a public hearing on the request during its March 7, 2017, meeting and based on the analysis of the case it unanimously recommended granting the C.U.P. subject to the applicant entering into a residential use agreement that would get recorded against the property which states that it could not be rented out to other than family members. Sundberg moved, Labadie seconded, Adopting RESOLUTION NO. 17 -023, "A Resolution Granting a Conditional Use Permit for an Accessory Apartment in a Single- Family Residence for Matt Sobraske the owner of the Property Located at 25555 Smithtown Road. Motion passed 4/0. 9. ENGINEERING /PUBLIC WORKS A. Accept Feasibility Report for Shorewood Lane and Riviera Lane Engineer Hornby noted the meeting packet contains a copy of a memorandum (memo) that describes what the Shorewood Lane and Riviera Lane Street and Utility Improvement Project would entail in summary as well as some financial and budget considerations. He explained that when street reconstruction projects are considered watermain extension in the project area is considered. He noted the 2017 Capital Improvement Program (CIP) for Water does not include funding for any watermain extension. He explained the City held a public informational meeting during which the residents did talk about water. Some of them were in support of extending watermain and others opposed it while some were neutral. The memo indicates the total cost for the street improvements (including sanitary sewer and stormwater management improvements) is $1,287,500. There are two options for the watermain extension along Yellowstone Trail; one option would cost $1,025.000 and the other $997,300. One option is from the stub at Club Valley Road east to Riviera Lane. The other is from the stub at Lake Linden Court west to Riviera Lane. Both options include assessing benefiting properties a total of $307,800 for the portions in the street and the Water Fund would contribute about $700,000 (plus or minus depending on the option) for the trunk extension costs. The estimated assessment amount for a single - family residential parcel would be $11,620 and $17,430 (or $7,500 per duplex unit) for a multi - family parcel. Shorewood Lane is located north of County Road 19 (Smithtown Road) just east of the public safety facility in Shorewood. Riviera Lane is located south of Yellowstone Trail between Yellowstone Trail and Highway 7. The street and utility improvements would include reconstruction of both streets, the addition of storm sewer, and minor sanitary sewer improvements (including inflow and infiltration reduction). The streets would be reconstructed to be 28 feet wide back -to -back of curb resulting in 12- foot -wide driving lanes. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES March 13, 2017 Page 10 of 15 There would be a 3 -foot excavation of the roadways and. the road beds would be rebuilt from that depth up. Storm sewer installation would improve the area drainage and reduce the amount of standing water and icing on the streets ultimately reducing pavement deterioration. The watermain extension would involve extending 8 -inch watermain from Echo Road across County Road 19 to Shorewood Lane, and along Yellowstone Trail from the stub at Club Valley Road east to Riviera Lane or from the stub at Lake Linden Court west to Riviera Lane. It would also include new f- inch services to the right -of -way (ROW) line. The property owners would be responsible to extend the watermain from the curb box at the ROW line to the house. They would also have to obtain a permit from the City and purchase a meter and accessories. He highlighted the schedule for the proposed project. The public information hearing would be scheduled for the April 24 Council meeting. Council would be asked to approve plans and specifications during June. The bid opening would be in July. The construction contract would be awarded in August. If a decision is made to move forward with the watermain extension an assessment hearing would be held in September. The final lift of the bituminous wear course would be in the spring or summer of 2018. He noted staff recommends Council adopt the resolution Receiving the Feasibility Report and calling for a public improvement hearing for the proposed Project. Mayor Zerby asked Engineer Hornby to provide Council with an update on the open house. Engineer Hornby explained that 8 of the 23 properties were represented at the open house. There was a lot of good conversation with much of it being about water. Each time a street reconstruction project is proposed there are property owners who do not want the street improvements done; that did happen for this proposed project. Some of them consider the existing roadway surface to be traffic calming. There was some discussion about drainage. There was also discussion about the eroded ravine behind. Shorewood Lane. This project does not include that restoration. Director Brown noted that the two roadways are dramatically different with regard to watermain aspects. He explained that for Shorewood Lane water is across County Road 19; therefore, the cost for the extension of watermain would be assessed to the benefiting property owners. A number of years ago the then Council decided that when watermain was extended to help the City's water system run properly those costs would not be assessed to the property owners. For this proposed project the watermain that extends up Riviera Lane would be assessed to the property owners; the trunk system along Yellowstone Trail would be paid for out of the Water Fund. Councilmember Johnson stated based on the discussion during the open house he anticipates that there would be a lively discussion during the public information hearing. Mayor Zerby asked how much more roadway material (including curb and gutter) would go toward the homes on the benefitting properties. Director Brown stated about 24 — 32 inches and that would be in the ROW. Councilmember Johnson stated he did not hear much pushback about the ROW encroachment. Brown stated he thought most property owners would like to have some type of edge control because of existing drainage concerns. Engineer Hornby explained when Star Lane does not look much different after it was reconstructed other than there being curb and gutter. There is no longer standing water on the north end at the intersection. Mayor Zerby stated the approved 2017 Street Reconstruction CIP slate a total of $826,000 for street improvements for Riviera Lane and Shorewood Lane combined. The Feasibility Report states that would CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES March 13, 2017 Page 11 of 15 cost $1,012,000. He asked why the cost has gone up so much. Engineer Hornby stated in the feasibility stage projects are estimated conservatively. Zerby stated a 20 percent difference is quite large. Engineer Hornby noted the CIP numbers were taken from the Pavement Management Plan and in the past the numbers have worked out quite well. Zerby stated that during the upcoming budget process he suggested the CIP numbers be updated to reflect current construction costs. Administrator Lerud stated staff will be working on that. Councilmember Sundberg stated she would like to move this forward to the public information hearing phase in order to hear public input, clarifying that does not mean she is supportive of what has been proposed. Councilmember Labadie stated she also supports moving this to the next stage, clarifying that does not mean she supports what has be proposed. Sundberg moved, Labadie seconded, Adopting RESOLUTION NO. 17 -024, "A Resolution Receiving Feasibility Report and Calling for Public Hearing on Proposed Improvements Riviera Lane and Shorewood Lane Street and Utility Improvement Project, City Project 17 -04." Motion passed 4/0. R. Pavement Decision Matrix Director Brown explained that during the February 24, 2017, Council and staff retreat there was discussion about the Pavement Restoration Flowchart which is used to guide the management of the City's pavement inventory. Council learned that staff has opted to use the process of asphalt coring of pavements prior to preparing the design for mill and overlay projects. Council asked staff to update the Matrix to include the use of that coring process. (A copy of the revised Matrix was included in the meeting packet.) The Matrix reflects that if the core samples are good a bituminous overlay would be done. If not, then Council and staff would discuss moving forward with a reclamation process. The Matrix reflects that the core samples would be taken a year in advance of when the mill and overlay improvement would be done. The goal is to have the coring data available for projects a few years in advance to help improve the accuracy of the Capital Improvement Program (CIP). He stated staff asks that Council approve the revised Flowchart. Councilmember Labadie stated she thought the revised Flowchart is what Council and staff discussed. Labadie moved, Zerby seconded, approving the revised Pavement Restoration Flowchart as presented. Councilmember Johnson stated the added Consider Reclaim box is decision point as presented. He asked if there need to be more actions under that box. Director Brown suggested removing the word consider. There was Council consensus to do that. Without objection from the maker or seconder, the motion was amended to say subject to removing the word "Consider" from the "Consider Reclaim" step. Motion passed 4/0. A. Comprehensive Plan Amendment Consultant Selection CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES March 13, 2017 Page 12 of 15 Administrator Lerud explained that during its February 27, 2017, work session Council heard presentations from Northwest Associated Consultants (NAC) and from WSB & Associates about their proposals to assist with the update to the Shorewood Comprehensive Plan. Staff believes both firms have the expertise to complete the update. The quotes came in within $600 of each other so cost is not a factor. He noted Staff recommends Council accept the proposal from NAC and reviewed the reasons why. NAC focuses exclusively on planning for local governments and it has done so for more than 30 years. WSB will do all of the engineering components of the update regardless of which firm is selected. Staff believes having a second firm involved will give the City the best product. Based on its presentation, NAC demonstrated it is a group of seasoned planners. Staff believes NAC would better represent the City if there were issues with Metropolitan (Met) Council about the City's Comp Plan. NAC has assisted the City before with preparing a housing study a few years ago, and it assisted with the environmental review for the Minnetonka Country Club project. The service NAC provided and the product it delivered each time were excellent per Director Nielsen. Councilmember Sundberg concurred with the rationale staff presented. Sundberg moved, Zerby seconded, accepting the proposal from Northwest Associated Consultants to assist with the Comprehensive Plan Update. Motion passed 4/0. B. Capital Improvement Expenditures Administrator Lerud explained the original 2017 Street Reconstruction Capital Improvement Program (CIP) included Echo Road, Howards Point Road, Kathleen Court, Oak Ridge Circle and Summit Avenue as well as the reconstruction of Riviera Land and Shorewood Lane. The first five of those roadways are no longer recommended for a mill and overlay; they are now recommended for reclamation. That will add an additional cost of approximately $475,000 to make the improvements which can be funded out of General Fund reserves. There is also an approximate $200,000 shortfall between budgeted funds and the cost to make the Phase 2 improvements to Badger Park. An additional $25,000 is needed to make the improvements to the Southshore Center (primarily the lighting and the ceiling tiles) that were discussed . during the February 24, 2017, Council and staff retreat. That $25,000 when combined with the $65,000 balance in the Southshore Center Fund should be adequate to cover the costs. Sundberg moved, Labadie seconded, authorizing the transfer of $475,000 to the Street Reconstruction Fund, $200,000 to the Park Improvements Fund and $25,000 to the Southshore Center Fund out of the General Fund reserves. Mayor Zerby asked if this is going to be the last surprise in the 2017 CIP. Director DeJong stated it has been determined that the cost to make repairs to the roadways on the Islands would be approximately $275,000 more than the $509,000 budgeted. Also, the roadways in the original 2017 CIP will cost an approximate $475,000 more than budgeted. The increased transfer will cover everything needed for 2017. There will be a challenge when it comes time to reconstructing Strawberry Lane. Mayor Zerby stated the amount of surplus reserves is being depleted. The fund balance from 2016 was used to purchase the Southshore Center from the other four cities. He then stated it will be critical to have tight numbers during the 2018 budgeting process. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES March 13, 2017 Page 13 of 15 Councilmember Johnson asked if the Southshore Center improvements have already been approved. Administrator Lerud, clarified staff is seeking bids for that work and those bids will come back to the council for consideration. Johnson noted that he is philosophically opposed to spending money on something before knowing what the overall plan is. Motion passed 4/0. 11. STAFF AND COUNCIL REPORTS A. Administrator and Staff 1. Utility Rate Increase Director DeJong explained that previously Council had approved utility rate increases of about $3.00 a month for stormwater and $2.00 a month for sewer. The average utility bill will go up about $5.00 per quarter starting with the next bill that will go out in April. That will be published in the next newsletter. Other Director Brown noted staff took delivery of the cabin chassis for the new utility service truck. That has been delivered to the body builder. He stated there has been discussion amongst staffs about a joint venture between Shorewood, Excelsior and Tonka Bay for a sanitary sewer vactor truck. That type of truck costs about $400,000 to $450,000. There is an agreement in concept; it is currently in the process of wordsmithing. Mayor Zerby asked if more cities could participate in that. Director Brown stated he thought three cities are about right. Councilmember Labadie stated when staff presents that to Council she will be expecting a lot of details. She noted that she has become leery of doing joint ventures with multiple cities. Councilmember Sundberg she will want assurance that it would be a fair and equitable partnership for both the upfront cost and for the upkeep of the truck. Director Brown stated as this time everything is being proposed as a third per city, noting Shorewood would benefit from that. Mayor Zerby thanked Public Works for the good job it did dealing with the previous day's 4 -inch snow fall. Engineer Hornby stated the installation of the storm sewer for the Minnetonka Country Club development has been completed with the exception of the restoration. He then stated for the Oppidan project the City contractor did extend watermain across Highway 7. That work was completed on March 3. Director DeJong stated the rate tables for utilities are being updated and tested. He then stated Communications/ Recycling Coordinator Moore asked him to inform Council that the City received a $1,500 grant from Hennepin County for organics recycling. That will be used to subsidize residents that will participate in the pilot project. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES March 13, 2017 Page 14 of 15 Administrator Lerud stated Communications /Recycling Coordinator Moore asked him to let Council know the 2017 tree sale went very well. Three of the five species sold out within two weeks. She was able to confirm an order for additional trees which have been sold out. It may be possible to get more trees in August. That would require that 1,500 trees be delivered to Shorewood. Lerud asked if Council would be willing to have another special meeting to continue the discussion about a city clerk position. Councilmember Sundberg stated Council needs more discussion on the matter. Sundberg moved, Johnson seconded, calling for a special meeting on March 20 immediately following the Economic Development Authority meeting which starts at 7:00 P.M. Motion passed 4/0. Mayor Zerby stated that during the February 24 Council and staff retreat there was discussion about rebranding the Southshore Center and sending out a request for information (RFI). Administrator Lerud noted that he and Councilmember Johnson met before this meeting about that. He hopes to have that ready for Council's March 27 meeting. Attorney Keane stated that the previous week staff met with representatives from Mattamy Homes to gain a more complete understanding of what Mattamy's plans and intentions are. Mattamy as the developer will continue through the completion of the project. Its transaction with the two builders (CalAtlantic and MI Homes) is a straight lot sale. They are slated to purchase wholesale blocks of lots and proceed with the buildout. The due diligence on that is continuing. It's anticipated the sale between Mattamy and CalAtlantic could be completed as early as mid - April. There will not be any assignment of duties and responsibilities in the Development Agreement to any other party. Mayor Zerby stated it is his understanding that Mattamy will be responsible for the amenities in the development. If Mattamy seeks authorization to start on the second phase to construct roads and do the utility work he expressed concern that the City may lose any leverage that it may have about Phase 1 amenities. He explained the original letter of credit was for $4 million and it was reduced to $1 million because of their work completed to date. He questioned if $1 million would cover the cost of the remaining infrastructure in Phase 1 if the City had to complete them. Attorney Keane stated there can be internal discussion if there is concern about security issues. There are additional remedies under the Development Agreement in addition to the financial security. They may come back with a request to re -plat the age- targeted units on the west side. They may want a slightly larger lot size for that block of units. Mayor Zerby asked if there are any timelines in the agreement. Director Nielsen stated there are for the first phase. Zerby stated he would rather be suspicious and be wrong than be generous in his thought and wrong. He wants to be assured that the City will get everything that was committed to the City in exchange for the special process and the change in the zoning. Attorney Keane stated staff communicated to Mattamy that the City intended to hold Mattamy to its commitments and obligations. Mayor Zerby stated based on his 14 years of service on Council in the end it seems like the City does not have a lot of teeth to hold people accountable after a developer has been granted permission to do something. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES March 13, 2017 Page 15 of 15 Attorney Keane stated there is a provision in the Development Agreement that if there is a default that has not been remedied the City can suspend the issuance of building permits and certificates of occupancy. Mayor Zerby stated that would only hurt the future land owners; not Mattamy. Keane stated the City will be very firm. Councilmember Sundberg asked if the City has a means of getting feedback from other communities where Mattamy is withdrawing from to find out if Mattamy is honoring its commitments. Attorney Keane stated staff can find out what other communities' plans are. Keane noted that Mattamy is a large publicly traded company. Mayor Zerby asked if the permitting for the second phase is done through the Planning Department. Director Nielsen clarified the second phase comes back to Council for final plat. B. Mayor and City Council Councilmember Sundberg stated the City had contacted its representatives regarding the bill about 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. Representative Pugh was very responsive. The bill has become very controversial. Labadie moved, Johnson seconded, adjourning the City Council Regular Meeting of March 13, 2017, at 9:05 P.M. Motion passed 4/0. RESPECTFULLY SUBMITTED,