06-26-17 CC Reg Mtg MinutesCITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD
CITY COUNCIL REGULAR MEETING COUNCIL CHAMBERS
MONDAY, JUNE 26, 2017 7;00 P.M.
MINUTES
1. CONVENE CITY COUNCIL REGULAR MEETING
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; Interim Finance Director Rigdon; Planning Director
Darling; Director of Public Works Brown; and, City Engineer Nornby
Absent: Councilmember Labadie
B. Review Agenda
Siakel moved, Sundberg seconded, approving the agenda as presented. Motion passed 4/0.
2. CONSENT AGENDA
Mayor Zerby reviewed the items on the Consent Agenda.
Sundberg moved, Johnson seconded, Approving the Motions Contained on the Consent Agenda
and Adopting the Resolution Therein.
A. City Council Work Session Minutes of Junel2, 2017
B. City Council Regular Meeting Minutes of June 12, 2017
C. Approval of the Verified Claims List
D. 2017 Deer Management Program
E. Adopting RESOLUTION NO. 17 -058 "A Resolution Approving the First
Amendment for Minnetonka Country Club P.U.D."
F. Authorization for Expenditure of Funds, Public Works Equipment — Tractor with
Flail Mowers
Councilmember Sundberg asked if the City received any complaints regarding the Deer Management
Program this past year. Administrator Lerud noted that the former Planning Director Brad Nielsen had
told him that it was very well received.
Councilmember Johnson asked who residents should contact if they want to suggest a suitable site for the
2017 Deer Management Program. Administrator Lerud suggested they contact him because he is going to
take over coordination of the Program.
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Administrator Lerud noted the invoice from Ellers for an amount of $1,050 was pulled from the verified
claims list. The invoice was for Shorewood, Wisconsin.
Motion passed 4/0.
Mayor Zerby noted there was a Boy Scout in the audience. He was there to earn credit for his merit
badge.
3. MATTERS FROM THE FLOOR
There were no matters from the floor presented this evening.
4. PUBLIC HEARING
A. Vacate the Right -of -Way of Northgate Circle
Applicant: Dan Freedland
Location: Between 26525 and 26575 Edgewood Road
Mayor Zerby opened the Public Hearing at 7:03 P.M
Director Darling explained the City received a petition from the owners of the properties located at 26525
and 26575 Edgewood Road requesting the vacation of the undeveloped right -of -way (ROW) for
Northgate Circle. Northgate Circle was never constructed. The ROW is located south of and
perpendicular to Edgewood Road; it is about one halfway between Grant Lorenz Road and Noble Road.
The ROW was obtained in 1978 as part of the Oak Ridge Estates 2 °d Addition Subdivision. It was
originally intended to allow a cul -de -sac to be extended south for additional properties south of the
petitioners' properties. That did not happen. Noble Road was constructed as an east /west street instead of
extending the cul -de -sac. The ROW is about 50 feet wide and 226 feet long. No public utilities were
installed in the ROW.
She highlighted three primary issues with the vacation that complicate the request.
1. Vacating the street would leave the adjacent property located at 26745 Edgewood Road without
access to a public ROW.
2. The house on that lot is not likely to need to have a driveway extended from the house over to
Northgate Circle. The grades are steep in the area. It is not a great candidate for a subdivision
because the east side of the lot is low and very similar in elevation to the wetland.
3. The wetland south of Northgate Circle and east of 26745 Edgewood Road is a public water and
the Northgate Circle ROW terminates in close proximity to the wetland. Because it is a public
water the Minnesota Department of Natural Resources (DNR) must be given 60 days to review
the vacation request. The DNR would comment on: the public benefits of the vacation; the
present and potential use of the land for access to public waters; and, how the vacation would
impact conservation of natural resources. To date, staff has not received any comment back from
the DNR.
Darling noted staff recommends Council take Public Testimony and delay making a final decision on the
request until the DNB's 60 -day review period expires or until the City receives comments from the DNR
on the requested vacation. Once the City receives comments back staff will place the item back on a
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Council meeting agenda and notify all of the residents present this evening who spoke or who let her
know they would like to continue to be involved.
Hans Holt, 26575 Edgewood Road, stated he and his wife Terri have lived in their home for 10 years. He
explained when they brought their property they understood there was some type of driveway easement
there. Unfortunately, they did not understand the implications of it until they put their property on the
market so they could relocate to the State of Montana.
Mr. Holt explained that a potential buyer wanted to put in a pool. That was when they found out there is a
50- foot -wide setback requirement. That requirement basically reduces the size of their lot by 33 percent.
No one has done anything with the ROW for 30 years. He and his wife thought it may be the right time to
formalize a vacation because their does not seem to be use for it. The ROW does lower the market value
of their property. He expressed hope that the ROW could be vacated and become part of their property.
He noted that on a corner of their property there is generally standing water. He does not think a road
could be built there.
Mr. Holt stated they met with former Planning Director Nielsen on his last day on the job. Mr. Nielsen
told them the intent of the cul -de -sac extension was to get over to Noble Road. That did not come to
fruition.
Mr. Holt noted that it makes sense to them to vacate the ROW.
Mayor Zerby opened the Public Testimony portion of the Public Hearing at 7:10 P.M.
Dan Freedland, 26525 Edgewood Road, explained he and his wife Kris had their home built in 1992.
When they built their home they were told it was unlikely the roadway would ever be built because of
things such as the soils conditions. He has looked out at the ROW every day since they moved into their
home. He expressed his and his wife's support for vacating the ROW.
Mayor Zerby closed the Public Testimony portion of the Public Hearing at 7:12 P.M.
Councilmember Sundberg asked when the 60 -day DNR comment period would be up. Director Darling
noted it started the previous week. She stated she was not sure the DNR would need the entire 60 days but
the DNR was not willing to give her some idea of when they would respond.
Mr. Holt asked what the DNR does. Director Darling explained the DNR has statutory authority over this
type of process whenever a public ROW abuts, is adjacent to or terminates at public water. Public waters
are not just necessarily a lake; they do include wetlands. She clarified the DNR does not necessarily make
the final decision. But, it is guaranteed by Statute the right to make recommendations or have input on the
impact of the vacation on access to public water.
There was Council consensus to delay taking action on this.
Mayor Zerby closed the Public Hearing at 7:14 P.M.
5. REPORTS AND PRESENTATIONS
A. 2016 Audit Report by Abdo, Eick and Meyers
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Mayor Zerby noted Andy Berg, with the independent CPA firm of Abdo, Fick & Meyers, LLP, is present
to provide an overview of the City of Shorewood's 2016 financial audit.
Mr. Berg noted the firm he works for issued a clean (unmodified) opinion on the City's financial
statements. It is the best opinion the City can get.
He explained there were three 2016 internal control findings. The first was timely bank reconciliations.
During the audit it was noted that the bank reconciliations were not completed timely. The 2016 statement
reconciliations were finally completed in April 2017. The recommendation is that the bank reconciliations
be completed within 15 days of month end. The second relates to long outstanding checks. There were
multiple checks outstanding for longer than three years. State Statute specifies what to do with them. The
recommendation is to review the list of outstanding checks each month. Any long outstanding checks
should be delivered to the State Commissioner of Commerce. The third is related to accepting donations.
Per State Statute donations must accepted with approval by resolution. There were donations received
during the year that were not approved by resolution. The recommendation is the City should accept
donations by resolution going forward. There were not any material audit findings for 2016.
He provided a financial overview of the City's General Fund expenditures and revenues. He displayed a
five -year trend graph of the City's General Fund balance and how it relates to the next year's expense
budget. He explained the City's General Fund balance was about 76.2 percent of 2017 budgeted
expenditures at the end of 2016. The balance at the end of 2016 was $4,604,583 and the 2017 budgeted
expenditures are $6,041,312. The balance increased $102,416 in 2016. That has increased as a dollar
amount over the last five years. The City's General Fund Balance Policy requires a fund balance of 55 to
60 percent of the next year's expenditures.
He highlighted the summary of the 2016 operations. The summary showed final budgeted amounts, actual
amounts and variances from the final budgets. Revenues were $390,158 over budget. That was primarily
because Licenses and Permits were $170,932 higher than budgeted. Intergovernmental revenues were
$82,055 higher than budgeted. Expenses were $203,406 under budget. That was mainly in Public Works
where expenditures were $233,884 under budget. There was a net increase of revenues over expenditures
of $282,564. Transfers out to other City funds equaled $1,387,313; that was $311,000 higher than the
budgeted amount.
He displayed a graph comparing five sources of revenues excluding property taxes and transfers in for
2013 through 2016. He explained that property taxes made up about 84.6 percent of the revenues in 2016
at $5,129,620. Licenses and permits revenues have increased over the last four years.
He displayed a graph comparing five sources of expenditures and transfers out for 2013 through 2016. He
explained the majority of the City's expenditures are in public safety and general government with them
being 27.2 percent and 23.7 percent respectively of the total expenditures and transfers out. There has
been a trend of a slight increase in public safety expenditures over the last four years. The total amount of
expenditures and transfers out in 2016 were $5,964,681. In 2015 they were $5,339,916.
He explained that at the end of 2016 the bonds outstanding totaled about $6.83 million and the total
interest remaining for the life of the bonds is about $715,949. In 2023 the bonded debt for the public
safety facilities will be paid off. There will only be the 2008 lease revenue bonded debt remaining; at the
end of 2016 there was just $920,000 in principal remaining.
He stated last year a new pension accounting standard went into effect. He explained the City participates
in the Public Employee Retirement Association (PERA) pension plan under State Statute. The plan has a
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total pension liability. The new standard requires all employer participants in that plan to recognize their
proportionate share of that net pension liability. The City's share is calculated based on its contributions
to the plan. The amount recognized in the City's 2016 financial statements as a liability was about $1.6
million. That information is not included in the management report but he thought it important for
Council to be aware of that.
He noted the City has only one special revenue fund; the Southshore Community Center (SSCC) Fund.
The SSCC operations ended 2016 with an operating loss of $364,849, There was a $381,000 transfer in to
cover the operating loss which included the $311,000 purchase of the Southshore Community Center
from the other joint powers entities. The Fund balance at the end of the year was $69,530.
He explained the City has six capital project funds. The six funds totaled approximately $2.494 million at
the end of 2016. That reflects a decrease of approximately $756,000 when compared to 2015. The Street
Reconstruction Fund increased $142,200; the year -end balance was approximately $1.595 million.
Transfers in were $755,000 and capital outlay expenditures were approximately $616,900. The Park
Capital Improvement Fund increased approximately $70,500; the ending Fund balance was approximately
$613,000. Revenues were approximately $738,000 mainly related to development; expenditures were
approximately $709,000. The Equipment Replacement Fund balance increased approximately $33,000.
The Trail Construction Fund year -end balance was a deficit of approximately $697,000; it was funded
with an internal loan. Expenditures were approximately $995,000. The Community Infrastructure Fund
year -end balance was approximately $306,000; which is a decrease of $4,900. Capital expenditures were
$250,207.
Mr. Berg highlighted the Enterprise Funds (water, sewer, recycling, and storm water management). For
each fund lie displayed a cash flow graph and a cash balance graph for 2013 — 2016.
He explained the cash balance in the Water Fund has decreased each of the last four years. Operating
receipts basically covered operating disbursements but not the debt service payments during the year. The
2016 year -end balance was $2,037,328. The decrease in 2016 was mainly because of the approximate $1
million inter fund loan for tax increment financing (TIF) for the Shorewood Senior Living project. The
remaining bonded debt on the G.O. Water Revenue Bonds at the end of 2016 was just over $1.6 million.
The cash balance in the Sewer Fund at the end of the year was approximately $2.81 million in comparison
to approximately $2.566 million at the end of 2015. In 2016 cash receipts from operations increased and
operating cash disbursements decreased.
The Stormwater Management Utility Fund cash flow graph indicates operating receipts have increased
each of the last four years and operating disbursements have decreased the last two years. The 2016 year-
end balance in the Fund was approximately $705,000 in comparison to the 2013 year -end balance of
approximately $148,000.
The Recycling Fund is basically a break -even fund. There are never any big capital projects it has to find.
Receipts were higher than disbursements in 2016. The cash balance was $175,591 at the end of 2016 in
comparison to $1 22,701 at the end of 2015.
Mr. Berg reviewed the ratio analysis over a four year period comparing some of the City's financial ratios
to peer group ratios for cities of similar size. The City's 2016 debt -to- assets ratio (for the City's assets this
measures how much is owed for them) was 27 percent; the 2015 peer group's was 34 percent. The City's
debt - service - coverage ratio (the ability of the Water Fund to pay back its debt service) was one percent.
The debt -per- capita ratio (the total outstanding debt broken down by resident) was $1,135; the 2015 peer
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group's was $2,517. It has been decreasing over the last four years as the bonded debt is being paid down.
The City's taxes -per- capita ratio was $688; the 2015 peer group's was $510. It has been increasing
slightly over the four -year period. The City's current - expenditures -per- capita ratio was $561; the 2015
peer group's was $688. The City's was $525 in 2015. The City's capital - expenditures- per - capita ratio was
$465; it was $254 in 2015. That varies based on capital projects. The City's capital assets percent left to
depreciate — Governmental ratio was 29 percent; the 2015 peer group's was 63 percent. The City's capital
assets percent left to depreciate — business -type ratio was 41 percent; the 2015 peer group's was 61
percent.
Mr. Berg offered to entertain questions.
Mayor Zerby thanked Mr. Berg and his colleagues for the great job they did on the audit and expressed
his appreciation for their oversight. He expressed hope that there will be no findings in the 2017 audit.
Zerby moved, Siakel seconded, accepting the draft 2016 Comprehensive Annual Financial Report
(CAFR) as presented and asking that it be filed. Motion passed 31011 with Johnson abstaining.
6. PARKS
7. PLANNING
1. Minor Subdivision for Two Lots
Applicant: Michael Hayes
Location: 24835 Yellowstone Trail
Director Darling explained Michael Hayes, representing the property owner, proposes to subdivide the
property located at 24835 Yellowstone Trail into two lots. This is the third similar application for a minor
subdivision on the property. Previous requests were approved in 2005 and 2015.
The property was originally platted as two lots (Lots 3 and 4, Block 1) in the Deerfield Addition
subdivision. The two lots were combined into a single parcel at some point in the past. The property is
zoned R -1C, Single - Family Residential. The west side of the property is located within the Shoreland
Overlay District for Lake Minnewashta.
Both of the proposed lots would comply with the area, depth and width requirements of the R -1 C district
as well as with the maximum hardcover requirement. The applicant has shown that a house could be
constructed on the new lot that would comply with the setback requirements and the impervious surface
requirement.
Darling noted staff recommends approval of this request. The Planning Commission discussed this
request during its June 6, 2017, meeting and also recommended approval.
Sundberg moved, Siakel seconded, Adopting RESOLUTION NO. 17 -059, "A Resolution Approving
Minor Subdivision of Real Property at 24835 Yellowstone Trail." Motion passed 4/0.
2. Report by Bob Bean on the June 6, 2017, Planning Commission Meeting
Commissioner Bean reported on matters considered and actions taken during the June 6, 2017, Planning
Commission meeting (as detailed in the minutes of that meeting).
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8. ENGINEERING/PUBLIC WORKS
A. Comprehensive Plan Engineering Services
Administrator Lerud explained that earlier in the year the City solicited requests for proposals (RFPs)
from firms to assist the City with the planning portion of the Comprehensive (Comp) Plan update.
Engineering was intentionally kept separate. Staff has since solicited a proposal from WSB & Associates
to provide engineering services to update the Transportation, the Local Surface Water Management Plan,
the Sanitary Plan, and the Water Plan components of the Comp Plan. The combined fees for providing
those services is $51,100.
Lerud reviewed why staff recommends Council accept the proposal from WSB.
1. WSB serves as the city engineer and has more understanding of the City's infrastructure than a
new firm could gain by the deadline to submit the updated Comp Plan.
2. Staff believes the price is reasonable.
3. Some of the stormwater engineering work done as part of the update would become part of an
overall stormwater management plan. It would not have to be redone again.
4. The proposal provides the minimum scope necessary to satisfy the Metropolitan Council's Comp
Plan requirements.
Mayor Zerby stated it was his recollection that alternative energy would be included in the Comp Plan.
He asked if that was going to happen. Engineer Hornby stated the intent of the Alternative Energy Study
the City had done by Great Plains could be referenced in the Comp Plan. The same thing applies to some
Xcel Energy studies.
Councilmember Sundberg noted the Partners in Energy representatives will be at the July 10 Council
work session to provide an overview of its recommendations.
Administrator Lerud stated staff will ask Northwest Associated Consultants (NAC), the planning
consultant the City is using, to include those references in the Comp Plan update.
Siakel moved, Johnson seconded, accepting the proposal from WSB & Associates to provide
engineering services to support the City Planning Consultant in preparing the 2018 Comprehensive
Plan update for an amount not to exceed $51,000. Motion passed 4/0.
9. GENERAL/NEW BUSINESS
A. Birch Bluff Road and Pleasant Avenue Traffic Study
Administrator Lerud explained that during its June 12, 2017, meeting Council discussed a proposal to the
Cities of Shorewood and Tonka Bay from WSB & Associates to assess the impacts of potentially closing
the access to Birch Bluff Road and Pleasant Avenue at the Cities' border. The cost of the study is
estimated to range between $8,856 and $14,952 depending on options selected. Shorewood chose not to
take action on the proposal until Tonka Bay decided what it was going to do. The Tonka Bay Council
voted unanimously to move forward with the study and have each City pay 50 percent of the base cost
($4,428). Neither City has included this item in their 2017 budget.
He reviewed the options Council has.
• Have the City participate in the traffic study and pay 50 percent of the base cost.
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• Have the City participate in the study and pay less than 50 percent, or as a condition of
participation and funding the City would have a say in what actions to take after the study.
• Do not have the City participate in the study.
• Provide staff with other direction.
Lerud stated this is a Tonka Bay driven initiative that would close access to its streets. The two roadways
need to be studied before doing that. Therefore, staff recommends the city participate and pay less than
one -half of the cost. He noted if the City does not participate it should not expect to have a say about what
will happen.
Councilmember Siakel stated if the City helps fund the study she asked what say Shorewood would have.
Administrator Lerud stated if Shorewood were to pay up to 50 percent there would need to be ground
rules about that identified up front. Siakel expressed opposition to pay one -half the cost; the study was
initiated by Tonka Bay residents. But, if there are some conditions such that Shorewood would have some
say she would be willing to have Shorewood contribute some funding. She thought one -half is excessive.
Councilmember Sundberg stated she thought Tonka Bay should pay more than Shorewood toward the
study. She noted she thought it prudent for Shorewood to have some control to ensure that the study
would be done in an impartial manner. She stated she did not think it would be prudent for Shorewood
not to participate. She indicated she could support Shorewood paying one -third of the cost. She stated
before giving final approval she would like to see what the parameters of the study are.
Mayor Zerby noted he was inclined not to take action; closing the roadways at the border would not be in
Shorewood's best interest.
Councilmember Siakel stated a handful of Tonka Bay residents brought this forward. What they want is
to privatize a public road. Many of the Tonka Bay residents that live along the roadway drive on Birch
Bluff Road to get to the Minnewashta Elementary School.
Siakel asked Attorney Keane what legal recourse the City would have if it contributed some funding.
Keane stated the legal issues would be a function of the presentation of the conclusions that would come
out of the study. For example diversion, closure or other modifications that could incur costs or implicate
traffic consequences for Shorewood. It is difficult to speculate on that. He asked if the study would
evaluate the consequences in and about the immediate roadway, or do a sensitivity analysis at
intersections as far away as Country Club Road and County Road 19. Closing the roadway would push
traffic out. The evaluation based on the defined scope would have impacts on the outcome.
Engineer Hornby stated the proposal is primarily to do a volume count and review that against the
capacities of the roadways. The proposal includes possibly temporarily closing the roadways to assess
what the impacts would be on traffic. It would not be a destination study.
Councilmember Siakel stated she thought it was a self - inflicted problem.
Engineer Hornby noted that on the north /south segment of Birch Bluff Road near Crescent Beach there is
one property located in Shorewood that has a driveway that connects with Birch Bluff Road. If the Road
was closed at the border that resident would be closed off from accessing Shorewood through Shorewood.
Councilmember Sundberg asked Engineer Hornby how WSB would handle this being the two Cities are
both clients of WSB. Engineer Hornby explained the person (Chuck Richart) who would do the traffic
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study is independent of the city engineers. He has done many traffic studies. He will do an independent
study and present his findings to the Cities. Hornby noted he thought the two Cities goals can be similar.
Sundberg stated if Shorewood participates she asked if that would narrow its legal options if it does not
like the conclusions of the study. Attorney Keane stated if Shorewood helps fund the study that does not
bind Shorewood to the conclusions. He then stated there are political and practical considerations that
should be taken into consideration that are separate from legal issues.
Councilmember Johnson stated he has concerns about Shorewood participating in a study that involves a
temporary closure of a street. He does not think residents on the benefiting side would be anything but
supportive of the closure because the value of their property would go up. He does not understand how it
would benefit Shorewood.
Councilmember Siakel noted she went to a couple of meetings when the Tonka Bay Council discussed
this. She clarified that the Tonka Bay Council did not come up with this idea. It was a small group of
Tonka Bay residents who brought this request forward. She does not think a closure would be in Tonka
Bay's best interest or for the community at large. Shorewood residents are opposed to closing the access
at the border. The Tonka Bay residents who are pushing this would benefit greatly. She reiterated the
issue is privatizing a public road.
Councilmember Sundberg asked Councilmember Siakel if she got the impression that the Tonka Bay
Council would be okay with Tonka Bay paying the entire cost of the study. Siakel responded no. At the
time she was there she did not think that Council knew what the cost would be.
Councilmember Johnson noted that he was surprised that the full Tonka Bay Council thought the cost of
the study should be split 50150.
Mayor Zerby stated the issue is not just about the number of vehicles traveling on the roadway. It is about
the width of the roadway, the lack of safe pedestrian access along the roadway and so forth. The roadway
does not have much more traffic than some of the roads in Shorewood. It is common for people to want to
be able to safely walk along roadways. The proposed study would only look at one solution which is to
close the road or not close the road.
Councilmember Sundberg stated after listening to the arguments presented she concluded she does not
think there is any reason for Shorewood to participate in any manner. She does not want to create any
impression that Shorewood has any kind of interest in this.
Councilmember Siakel stated it seemed to her that the Tonka Bay residents who brought this forward
have moved into the area in the last five years. She then stated if someone buys a property next to a
county road and traffic exits she does not understand how they can be so surprised about the traffic when
the traffic pattern has been the same for a long time.
Mayor Zerby noted the roadway is a rural style roadway especially on the west end of town. They are
narrow roadways with no shoulder.
Councilmember Siakel noted that she lives along Birch Bluff Road. She and her neighbors are very
opposed to closing the road. She stated if Shorewood does not have a say in the outcome then she will
side with Mayor Zerby to not have the City participate.
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Councilmember Johnson stated that given one Shorewood property would be on the other side of the
closure he asked if that increases Shorewood's legal options. Attorney Keane stated there are legal
questions at several different levels. He explained that currently there is a roadway facility that connects
two Minnesota State Aid (MSA) facilities. That raises a question in his mind with regard to compliance
with MSA standards. There are also reliance based expectations for people on the other side of the
proposed barrier who acquired their property with the understanding that there was reasonable access to
the arterial network. They were not told that access could be eliminated.
Attorney Keane stated the consequences of doing nothing now depends on what the scope of the study
involves and what the conclusions of the study end up being. He noted that Shorewood has an opportunity
to conduct its own study at another time. He stated he does not think Shorewood would be legally bound
if it did participate. But, Shorewood would be less committed to the process if it did not participate.
In response to a question from Councilmember Siakel, Attorney Keane stated one half of Crescent Beach
is located in Shorewood. He explained quite some time ago there was discussion about the Beach being a
shared facility and a shared undertaking between Shorewood and Tonka Bay. Siakel asked where the
boundary is. Director Brown explained Shorewood owns approximately one -third of the Beach; the city
boundary falls to the east of the ditch.
Johnson moved, Sundberg seconded, electing not to participate in the traffic study for Birch Bluff
Road and Pleasant Avenue.
Danette Quam, 5295 Lee Circle, stated her backyard is where the power pole at Crescent Beach is
located. Based on map she just received about her property the Shorewood /Tonka Bay boundary goes
down the middle of Birch Bluff Road as you go toward Crescent Beach. She then stated Shorewood
would be the most affected by closing access to roads. She noted she has lived in her home for 35 years
and in Tonka Bay for 10 years before that when it was a route box number and when horses road up and
down County Road 19.
Ms. Quam noted she attended one of the Tonka Bay Council meetings when the study and potential
closure was discussed. It was just a handful of Tonka Bay residents who brought closing the roadway
forward. Doing that would impact fire, police and emergency response. She stated she travels on Pleasant
Avenue to get to County Road 19; in the winter the drive is beautiful. She does not want that taken away
from her. She expressed hope that Shorewood would advocate for its residents against the proposed road
closure.
Councilmember Siakel stated she lives up the street from Ms. Quam along Birch Bluff Road just beyond
Eureka Road. She explained the Shorewood City Administrator has been in touch with Tonka Bay,
Ms. Quam stated one of the Tonka Bay residents who brought the closure forward has a bit of a skewed
perspective. That individual has stopped drivers when they were driving the speed limit and told them
they were racing. One stretch of Pleasant Avenue has a posted speed of 20 miles per hour (mph) and it
increases to 25 mph when you reach Shorewood. She noted that most drivers that come through there
drive past her home. If the road were closed she wondered if they would drive to Lee Circle and turn
around and go back. She then stated Eureka Road is almost not drivable currently. That road could not
handle the increase in traffic.
Councilmember Siakel stated Council is aware of the situation and concerned about what is being
proposed.
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Ms. Quam asked if anyone has considered making it one way in and one way out; coming in on Pleasant
Avenue and going out on Birch Bluff Road. She does not think that has happened. Doing that would not
totally close the road or impact people that much. She stated the residents who brought this closure idea
forward want a private road. She commented that she never sees people at the Beach leave and walk north
to County Road 19. She stated she thought making the two roadways one -way would be much better than
closing access to roads.
Councilmember Siakel stated people are finding solutions when there is no problem.
Ms. Quam stated traffic can be heavier in the morning before school starts and when people are going to
work and again when school gets out.
Councilmember Sundberg stated the Shorewood Council is very concerned about what has been
proposed.
Nadine Graff, 5290 Lee Circle, stated if that road is closed she asked how many drivers would come
down Birch Bluff Road then remember the road was closed and turn around on Lee Circle and drive back
out. She then stated if people cannot drive to Crescent Beach they are likely going to park along Birch
Bluff Road and walk to the Beach.
Mayor Zerby thanked Ms. Quam and Ms. Graff for their comments.
Councilmember Johnson stated it would not only be the privatization of a road it would also be
privatization of a beach.
Motion passed 4/0.
B. Lake Minnetonka Association Request
Administrator Lerud explained that during Council's June 12, 2017, meeting Lake Minnetonka
Association (LMA) Executive Director Evenson requested a $5,000 contribution from the City to help
pay for 2015 expenses for treating Eurasian Watermilfoil (milfoil) in Phelps Bay. Director Evenson also
asked the City to make a contribution of $6,000 to help pay for the partial treatment of Gideon Bay in
2017. The City contributed $12,000 toward treatment in 2015; $6,000 for 2014 and 2015, and contributed
$1,800 in 2016.
Lerud noted staff recommends the City contribute $2,500 towards the unreimbursed expenses incurred for
the 2015 treatment of Phelps Bay and $6,000 for work planned in 2017.
Councilmember Siakel stated based on what the City has contributed in the past she does not think staff s
recommendation is out of line. She noted she was open to changing her mind in either direction
depending on what other members of Council have to say.
Councilmember Sundberg noted she support staff's recommendation. It would continue the City's
commitment to helping mitigate milfoil.
Councilmember Johnson stated the funding approach appears to have been a broken design from the start.
That approach needs to be changed.
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June 26, 2017
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Councilmember Sundberg stated Director Evenson is relatively new in his position and he needs some
time to improve things. She thought it prudent to let him know that for next year there is an expectation
that there will be a better plan.
Councilmember Johnson stated he could support what staff has recommended with the understanding that
there will be future scrutiny. He suggested that Director Evenson watch the video recording of this
discussion to gain an understanding of Council's concerns.
Sundberg moved, Zerby seconded, approving staffs recommendation for a contribution to the
Lake Minnetonka Association. Motion passed 410.
10. STAFF AND COUNCIL REPORTS
A. Administrator and Staff
Director Brown noted Public Works took delivery of a utility service truck. He stated the Shop
Technician has been working on installing the emergency lighting, logos and communications equipment.
The work was to be completed that day. The vehicle is primarily used for onsite lift station work and at
the water plants. It also serves as a general service vehicle out in the field. He noted the frame on the
existing truck has rusted through.
Mayor Zerby stated a few years ago there was discussion about a stormwater maintenance program, for
lack of a better name. The City has a number of culverts, outlets, retention ponds and so forth that need to
be monitored and maintained. He thought a list of items that needed to be done was going to be generated.
He asked if that has been done. Director Brown stated that is part of the Municipal Separate Storm Sewer
System (MS4) MS4 program for the MPCA (Minnesota Pollution Control Agency). Brown explained the
City's outfall structures are inspected annually. Retention ponds are to be inspected; WSB & Associates
is helping with that. Pollution control structures are inspected annually. Zerby asked if that has to be
reported to the State. Brown stated that is due to be done at the end of June 2017. Staff along with
assistance from WSB has compiled a report; the report should be filled within the next day or two. Zerby
suggested that report be put on the City's website and thanked staff and WSB for their efforts.
Zerby asked for an update on the signal light at the intersection of Highway 41 and Highway 7. Brown
explained there is a standard throughout the metropolitan area requiring cities to do the re- Tamping of
signal lights. Seven years ago the signal lights were converted to LED lights. Legally an electrician is
required to change those LED bulbs. That is also a Minnesota Department of Transportation (MnDOT)
standard. The electrician the City uses has told him he will replace the bulb in the very near future.
Councilmember Siakel asked Director Brown to comment on the plan for Eureka Road. Director Brown
explained there are two issues with that road. The filling with gravel was needed because of the spring
flooding. When doing that staff found out that the culvert that serves that area had deteriorated to the
point that it needs to be replaced. Staff has solicited quotes to do that culvert work. It has been difficult to
find a contractor to do that work under those wet conditions. He and Engineer Hornby have discussed the
need to reclaim that part of the road. It would be more cost effective to do that work in the fall when other
contracts are let. It would likely be cost prohibitive to do just that small portion alone. Siakel stated she
thought Eureka Road is in bad shape all the way down. It is in worse shape than Strawberry Lane and
some other roads staff and Council have discussed. Brown concurred. Councilmember Sundberg stated it
is much worse. Engineer Hornby explained he has instructed the design staff to add it to the 2017
reclamation project in order to reduce the cost. He also asked them to add the curb radium along the
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Country Club Road / Yellowstone Trail / Lake Linden Drive corridor into the design. The radium should
help slow traffic down.
Mayor Zerby asked staff to comment on the speed awareness display signs along Mill Street. Director
Brown explained Hennepin County has installed the southbound sign. The sign for northbound has been
delivered to the County noting the County is going to install the sign for the City.
Director Brown explained a number of months ago there was an issue with the southbound speed
awareness display along Country Club Road. The issue was a known warranty issue. The display was
repaired at no cost to the City. At that time the original equipment manufacturer offered to cover the cost
for the northbound sign if the same thing were to happen to it even though the warranty period had
expired. Staff has confirmed that the manufacturer will repair the display at no cost to the City. The
display has been sent out for repair.
Mayor Zerby asked for an update on the City's sign replacement program to bring signs into compliance
with federal reflectivity standards. Director Brown explained all of the stop signs, no parking signs, and
speed limit signs that did not comply with the standards have been replaced. About two- thirds of the City
name plate signs have been ordered and the other one -third has been delivered. He thought the move
toward full compliance is on schedule.
Engineer Hornby noted that he, Mayor Zerby and Administrator Lerud went to Chaska Road to assess the
watermain extension area. It was a mess. He explained there is a utility that needs to be relocated; that is
scheduled to be done this week. If the two utility boxes get moved this week then the contractor can come
back and finish up. The developer has been reminded that it is responsible for cleaning up the road. They
were also asked to tidy up their fence.
Mayor Zerby stated he noticed the monument sign on the south side of the Minnetonka Country Club
(MCC) development site has been abandoned from a construction stand point. It appeared to him that
activities related to the drainage pond with the filtration are back under way. The path along Country Club
Road is stopped about half way down. Engineer Hornby noted Mattamy Homes wants to realign the path.
He has been exchanging emails with Mattamy representatives regarding what Mattamy has to do to
realign the path. Hornby explained the cross country trails happen to have quite a bit of organic material
underneath. The geotechnical groups met out there the previous week. Mattamy's consultant provided
him with an update. He received an update from the City's consultant AET (American Engineering
Testing, Inc.) and he will relay that to Mattamy's representative. Hornby then explained the second phase
has been graded. Work is almost complete on the stormwater pond. The grading is moving toward
Smithtown Road. Zerby asked if all of the tree removal work has been completed. Hornby stated
Mattamy's tree contractor was recently onsite for a day and the intent was to complete the tree removal
with the possible exception of the area of the additional lots off of Seamans Drive.
Zerby asked what the status of the one wire along Smithtown Road near the Mattamy site. Hornby stated
he has not been able to get an answer on that. Xcel Energy is going to leave the poles in place until it gets
moved. He noted CenturyLink has more restoration work to do close to Club Lane.
Zerby stated he has received a couple of phone calls from residents regarding the paving of the Freeman
Park south parking lot. Hornby explained there is a preconstruction meeting scheduled for July 6 to
establish the schedule for the paving.
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Engineer Hornby stated he spoke with the contractor for the 2017 Pavement Marking project on June 23.
The contractor intends to get started sometime after July 4. He asked the contractor to contact Matt in the
field and work through him.
Director Darling noted the Park Commission's first park tour has been rescheduled to June 27. People are
to meet at Eddy Station in Freeman Park at 6:00 p.m. The tour originally scheduled for June 13th was
cancelled due to rain.
Administrator Lerud stated as part of the Tree Management Program started in 2016 the tree evaluation
option for residents has been rolled out. Residents need to schedule their evaluation appointment with
S &S Tree and Horticultural Specialists, Inc. through City Hall.
Attorney Keane provided a brief summary of the 2017 State Legislative enactments that affect local units
of government. The legislative session was characterized by two major trends. The first is there is on a
national level an undertaking by industry groups at state legislative levels to adopt standardized
legislation that is favorable to certain industries. The one the City was made aware of was to pre -empt
local authority to manage right -of -way (ROW) access for certain wireless communications equipment.
Those carte blanche efforts were passed in nine states. The League of Minnesota Cities (LMC) worked
very hard on that issue. The bill was pushed through by the Minnesota House and Senate majorities. The
LMC negotiated more favorable provisions regarding limitations, review, and use. The LMC also
negotiated having a 90 -day shot clock as opposed to automatic approval.
There is going to be a lot more of that trend of intervention by the legislature in local government
prerogatives whether it be preemption, withdrawing authority that had previously been granted to local
units of government, or imposing mandatory requirements on local units. There was a bill that sailed
through the House but failed in the Senate that would have limited the local units' ability to include any
aesthetic enhancements on a public improvement project (e.g.; a bridge project or road project). There
were proposals for reverse referendums on franchise fees and the lease /purchase of public buildings.
There were 34 limitation or preemption bills that were initiated at the legislature this year.
He encouraged members of Council as local elected officials to communicate with their local legislatures
about whether or not they support the limitations, noting he assumed they do not. The local legislative
delegation needs to hear from local elected officials about those issues.
He noted where certain limitations could not be imposed the legislatures sought back door limitations by
withholding local government assistance to cities that did or did not do certain things that were in or not
in favor of the current majorities in both the House and Senate.
Keane stated the message to take away is for people to pay much closer attention to what is going on at
the State Capital. The legislature is taking a very activist role in the power it dictates and the power they
withhold to local units of government. The trend has a lot of traction in the Minnesota Legislature.
Councilmember Sundberg asked Attorney Keane to let Council know how the City's Senate and House
representatives voted on key issues. She noted that she had asked that Council have a work session and
invite the City's Senate and House representatives to discuss Council's concerns about various issues.
Attorney Keane stated he would obtain as much of that information as he can and provide it to Council in
advance of that work session.
CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES
June 26, 2017
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Mayor Zerby asked Attorney Keane what the status of the franchise agreements is. Attorney Keane stated
the model ordinance is in place and noted Council needs to quantify the recommended dollar amounts in a
work session. Administrator Lerud noted that discussion is scheduled for a work session in late July.
Zerby stated he has been hearing from residents regarding the issue on Timber Lane and also from a
Tonka Bay resident who connects to the road in Shorewood. He asked that staff report on that during the
June 27 staff meeting.
B. Mayor and City Council
Councilmember Johnson stated that the residents in the Shorewood Oaks area are having a discussion
regarding their concerns about traffic. There may be a suggestion coming to close a road.
Councilmember Siakel noted that there is a joint Excelsior Fire District Board and member City Councils
budget work session scheduled for 6:00 p.m. June 28, 2017, at Station 1. She and Councilmember
Sundberg will be in attendance. Administrator Lerud noted he will be there also. Mayor Zerby stated he
planned on going because he has some questions.
11. ADJOURN
Sundberg moved, Siakel seconded, Adjourning the City Council Regular Meeting of June 26, 2017,
at 8:40 p.m. Motion passed 4/0.
RESPECTFULLY SUBMITTED,
Christine Freeman, Recorder
ATTEST:
--e-1-f3m I r T �
Sandie hone, ity Clerk
Scott Ke6y, Mayor