Loading...
08-28-17 CC WS MinutesCITY OF SHOREWOOD CITY COUNCIL WORK SESSION MONDAY, AUGUST 28, 2017 MA ►lill=l� —1 CONVENE CITY COUNCIL WORK SESSION 5755 COUNTRY CLUB ROAD COUNCIL CHAMBERS 5:30 P.M. Mayor Zerby called the meeting to order at 5:31 P.M. A. Roll Call Present. Mayor Zerby; Councilmembers Johnson, Labadie, Siakel, and Sundberg (arrived at 5:34); Administrator Lerud; Planning Director Darling; Director of Public Works Brown; Engineer Hornby; and, Engineer Fauske Absent: None B. Review Agenda Labadie moved, Siakel seconded, approving the agenda as presented. Motion passed 4/0. 2. 2018 GENERAL FUND BUDGET Administrator Lerud explained nothing has changed in the draft 2018 General Fund Budget since Council briefly discussed it during its August 14 work session. The overall levy reflects a 2.9% increase over the 2017 levy. Interim Finance Director Rigdon will prepare an analysis on the impact of that increase on the 2018 tax rate once the City receives next year's property valuations from Hennepin County. During the August 14 work session Council asked what the total cost of the proposed new Public Works light utility operator would be. Rigdon estimated it to be $77,964. Councilmember Labadie stated she thought the information provided to Council was very thorough. Council walked through the proposed budget by line item and the following clarifications were made. • The 2233.3% increase in line item Revenues /Charges for Services /Park Fees & Rentals appears to be the result of two line items for the same thing having been combined into one and the other being eliminated. That resulted in that large percentage increase but the dollar amount increase is not very much. • It was noted the Revenues /Miscellaneous /Cellular Antenna Revenue line item budget for 2018 is less than the actual for 2016. The 2017 and 2018 budgeted amounts are the same. • The total budgeted revenue increase when compared to the 2017 budget is 3.0% (or $173,008). Of that $150,249 (or 2.9) is the increase in the tax levy. • Line item Expenditures /Council /Other Services and Charges /Rentals actual amounts have been $0.00 for 2015 and 2016 and the budget for 2017 and 2018 is also $0.00. It was noted that line item could be removed. The same things apply to Expenditures /Council /Other Services and Charges /Printing and Publishing. CITY OF SHOREWOOD WORK SESSION MEETING MINUTES August 28, 2017 Page 2 of 5 • The Expenditures / Council /Supplies year -to -date (YTD) actual amount is $8,731 which is over $6,000 more than 2015 and 2016 actuals. • It was noted Election expenditures were separated out from Administrative expenditures. • The Elections /Other Services and Charges /Print and Publishing line item budget is $2,500. It is for printing and publishing election ballots. • The budget for Finance /Other Charges and Services /Contractual Services reflects a significant increase when compared to 2017 because of the cost for contract services for the Interim Finance Director. That basically offsets the reduction in Finance /Personnel Services /Full-Time Regular. • The approximate 95.5% decrease in Planning/Other Charges and Services /Contractual Services is a result of the Comprehensive Plan update should be done and the services no longer needed. • It was noted that for the General Fund legal expenditures are not charged back to specific departments in 2018. • The budget for police reflects the 2018 South Lake Minnetonka Police Department Budget Council approved during its August 14 meeting. • The Police /Capital Outlay /Building and Structures line item reflects a small decrease due to the bond refunding done late 2016. • The budget for fire services reflects the proposed 2018 Excelsior Fire District Budget that Council will consider for approval during its regular meeting immediately following this work session. The proposed budget is $625,953. • The total annual cost for the new Public Works light utility operator is estimated it to be $77,964. Of that 90% is included in the Public Works budget and the remaining 10% in Snow and Ice Removal. • In Public Works /Supplies /Road Maintenance Materials were separated out from General Supplies a few years ago. • Public Works /Other Charges and Services /Drug Testing expense is for drug testing mandated by federal law. That must be done by an independent lab and medical doctor. • Public Works /Other Charges and Services /Contractual Services increased significantly mostly due to the cost for the tree service program. • Other Financing /Transfers Out includes transfers of: $70,000 for Southshore Center operations; $93,895 for the City Hall debt service; $920,000 for street and public works equipment; and $42,000 for parks. 3. CAPITAL IMPROVEMENT PROGRAM Administrator Lerud explained that during the August 14, 2017, work session there was lengthy discussion primarily about the street maintenance schedule and the Street Reconstruction Capital Improvement Program (CIP). During that meeting Council directed staff to merge stormwater management improvement priorities with street improvement priorities when possible. The Street Reconstruction CIP is similar to what Council had adopted in the past with the exception that mill and overlay projects were changed to reclamation and the reconstruction of Riviera Lane and Shorewood Lane had been moved from 2017 to 2018. There was one significant change in the Street Reconstruction CIP schedule. The reconstruction of Strawberry Lane and West 62 "d Street are not included in the schedule through 2021. That work was moved out because a trail was to be constructed along Strawberry Lane in conjunction with the reconstruction. The plan is to fiord the trail with tax abatement bonds repaid from the Minnetonka Country Club (MCC) development. Lerud said that it is his recommendation to wait on issuing any bonds where the city is planning on repaying them with tax abatement proceeds from the MCC project. He said if the development fails to occur, the repayment of those bonds falls back on the rest of the CITY OF SHOREWOOD WORK SESSION MEETING MINUTES August 28, 2017 Page 3 of 5 property in the City. Staff believes it is prudent to push out the trail construction, including the reconstruction of the roadways, until there is a more firm schedule for the MCC development. The Equipment Replacement CIP was adjusted to reflect estimated inflation. The Equipment Replacement .Fund is adequately funded provided future planned transfers into the Fund are made. The Park Improvements CIP is adequately funded in 2017. There is also adequate funding for the remaining Badger Park improvements (Phase 3), the Cathcart Park tennis court resurfacing, and the Silverwood Park half court resurfacing all scheduled for 2018. Staff now has an estimate ($80,000) for the replacement of the retaining wall in Silverwood Park scheduled for 2023. The tennis courts in Badger Park are scheduled for reconstruction in 2019 and the new estimate is $325,000 (the CIP has $200,000). The new estimate is based on the same size court just bid in the City of Minnetrista. Councilmember Siakel stated a lot of the improvements in Badger Park were supposed to be paid for out of park dedications fees from the MCC development. As more of those fees are collected she asked if some of those fees would be put into the General Fund to offset the funds that had been transferred out of the General Fund into the Park Capital Maintenance Fund to pay for improvements. Administrator Lerud explained that in 2017 there have been $291,127 in Mattamy park dedication fees put into the Park Capital Maintenance Fund. Those were for the last phase, minus 16 lots, of the MCC project. Earlier in the year Council approved transferring $200,000 in excess General Fund reserves into the Park Fund. The balance in the Park Fund at the end of 2017 is estimated to be $377,140. The only revenue estimated for 2018 . is the $42,000 transfer from the General Fund. The $20,000 in grant fiords is slated for Badger Park playground equipment. Councilmember Siakel noted the actual and planned park improvement expenditures for 2016 — 2018 total more than $1.8 million. She highlighted the some of the park improvements that either have been or will be paid for with those funds. For example, Badger Park improvements include a lacrosse field, parking lot improvements, improvements near the Southshore Center, and reconstruction of the tennis courts. She stated she thought it prudent for Council to reinforce to the .Park Commission the significant amount of money the City has spent or will spend on park improvements over that three -year period. Administrator Lerud noted the balance in the Park Fund at the end of 2018 is estimated to be $56,412. Lerud explained staff has drafted a CIP for the Southshore Center (SSC). It was to a large extent based on the long -term capital maintenance plan for the Center prepared by Building Official Pazandak a year or two ago. A few items have been added since that was created. The goal is to do some of the critical items yet in 2017 and then level out the expenses for the maintenance improvements as best as possible. The CIP indicates all of the improvements should be done in 2024. He noted that in 2016 Council approved the expenditure of $43,000 in 2017 and $41,000 in 2018 for capital improvements to the SSC. Earlier this year it also allocated $90,000 in excess General Fund reserves toward those improvements. All of the 2017 — 2019 improvements are fully funded assuming a levy of $29,750 in 2019. . In 2020 there will be a minor deficit. In response to a comment from Mayor Zerby, Administrator Lerud clarified the City does not have to go out for bids for replacing the roof on the SSC because the estimated cost is less than $50,000. Administrator Lerud noted that he had provided Council with a copy of an informational document showing what franchise fees Xcel Energy collects for cities in the metropolitan area and clarified that 97% of the connections in Shorewood are residential. CITY OF SHOREWOOD WORK SESSION MEETING MINUTES August 28, 2017 Page 4 of 5 Councilmember Johnson stated he thought a $4 fee might be too high for Shorewood. Administrator Lerud said the Council can set whatever fee it would like, but noted the money for roadway improvements has to come from somewhere. He stated franchise fees provide a way for the City would to capture funds from roadway infrastructure users who do not otherwise pay through property taxes. Councilmember Sundberg noted the City has not collected a franchise fee through Xcel Energy since 2007 and that she would support a $4 fee. Councilmember Johnson stated he could support a $4 fee provided there is open connnunication about it. Administrator Lerud noted the City would have to hold a public hearing on a franchise fee. Johnson stated he would like communication in addition to a hearing. Lerud stated there would be something about the amount and what it would be used for published in the City newsletter, placed on the City website and published in the official newspaper for the City. Administrator Lerud explained staff's intent is to have Council adopt the preliminary 2018 General Fund Operating Budget and set the maximum tax levy increase during its September 11, 2017, meeting. After that staff will ask Council to approve a professional services agreement to do the coring of roadways. Mayor Zerby stated that sometimes Council has set the maximum tax levy a little high to cover any unexpected expenditures that may be identified prior to setting the final levy increase. Other Councilmember Siakel stated if Council decides to go through an abatement process for the MCC development she recommended having a discussion about how the abatement proceeds would be utilized. She stated she thought some of the fiends should be used to improve the traffic flow near the MCC development and some for the proposed Strawberry Lane trail segment. Siakel asked why the new trail along Country Club Road that was built by the developer for the MCC development stops across from where Mary Lake Trail intersects with the Road. Engineer Hornby explained there is a significant wetland in that area as well as a couple of significant size trees. At the end of the plat there is no side street so the next best option was to end the trail across from Mary Lake Trail. The plan was the trail was going to end at the edge of the plat but there were those issues at that location. Siakel stated she thought the end of the trail needs to be changed some time in the future. Engineer Hornby explained that prior to Administrator Lerud joining staff there had been discussion about using abatement proceeds to help fund the construction of trails near schools. Mayor Zerby commented that about 1.5 years ago he, Councilmember Labadie, former Administrator Joynes and Minnetonka Schools Superintendent Dr. Dennis Peterson had met to discuss the School District's participation in tax abatement process. He stated that he and Administrator Lerud met with representatives from the Three Rivers Park District (TRPD) the previous week to discuss funding assistance for a trail from across from Mary Lake Trail over to Lake Linden Drive. TRPD staff thought that trail would be a good candidate for that' type of gap funding through Hennepin County or the Minnesota Department of Natural Resources. TRPD offered to help the City with preparing those applications and to endorse them. He then stated he had spoken with Hennepin County Commission Chair Callison about funding for a trail segment from the gas station near the County Road 19 and Smithtown Road intersection to the community gardens in the City of Excelsior. Chair Callison committed to working with staff on that. CITY OF SHOREWOOD WORK SESSION MEETING MINUTES August 28, 2017 Page 5 of 5 Councilmember Siakel stated if Council chooses to move forward with the abatement process she asked how that would impact the City with regard to funding for the fire and police joint powers organizations. meson Fauske, with WSB & Associates, introduced herself and noted she started with WSB a few weeks ago. She stated she has an extensive background in working with municipal governments. She had been the assistant city engineer with Chanhassen for 12 years. Engineer Hornby stated Ms. Fauske will be at City Hall all day on Tuesdays and Thursdays and he will be on site Tuesday and Thursday mornings. There was some discussion about the progress and timetable for the MCC development. 4. ADJOURN Sundberg moved, Siakel seconded, Adjourning the City Council Work Session of August 14, 2017, at 6:19 P.M. Motion passed 5/0. Sandie Thone, City Clerk