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09-25-17 CC Reg Mtg MinutesCITY OF SHOREWOOD CITY COUNCIL REGULAR MEETING MONDAY, SEPTEMBER 25, 2017 MINUTES 1. CONVENE CITY COUNCIL REGULAR MEETING 5755 COUNTRY CLUB ROAD COUNCIL, CHAMBERS 7:00 P.M. Mayor Zerby called the meeting to order at 7:05 P.M. A. Roll Call Present. Mayor Zerby; Councilmembers Johnson, Labadie and Sundberg; Attorney Keane; City Administrator Lerud; City Clerk Thone; Planning Director Darling; Director of Public Works Brown; and, City Engineer Fauske Absent: Councilmember Siakel B. Review Agenda Labadie 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, Labadie seconded, Approving the Motions Contained on the Consent Agenda and Adopting the Resolutions Therein. A. City Council Regular Meeting Minutes of September 11, 2017. (It was noted that the phrase "an amount not to exceed" was removed from the motion adopting the resolution for Item 8.13 on the agenda which was found on page 9 of the minutes.) B. Approval of the Verified Claims List C. Adopting RESOLUTION NO. 17 -082, "A Resolution Accepting 2017 Hennepin County Residential Recycling Grant." D. Adopting RESOLUTION NO. 17 -083, "A Resolution Approving Updated City Fee Schedule." E. Proposal for Construction and Material Testing Services for the Badger Park Phase 2 Improvements, City Project 17 -09 Motion passed 4/0. 3. MATTERS FROM THE FLOOR There were no matters from the floor presented this evening. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES September 25, 2017 Page 2 of 14 4. PUBLIC HEARING 5. REPORTS AND PRESENTATIONS 6. PARKS A. Report by Molly Barr on the Septemberl2, 2017, Park Commission Meeting Park Commissioner Barr reported on matters considered and actions taken during the September 12, 2017, Park Commission meeting (as detailed in the minutes of that meeting). Director Brown explained Public Works personnel have tasks (e.g.; watermain flushing, roadway patching, and jetting of the sanitary sewer system which is required by the City's insurance carrier) that must be done before the ground freezes. Public Works has committed to creating the ice rink in the Freeman Park north parking lot but it may be pushed out to when the temperatures start dropping. Staff was working with the electrician to have the lights installed in the next day or two; the footings for the light standards have been poured. B. Accept Donation of Memorial Park Bench Director Darling stated the City recently received a donation of $1,000 from Jason Landstromon, on behalf of Minnetonka Lacrosse Association, for a park bench in Badger Park. The donor would like the bench to be located adjacent to the Lacrosse Field. The bench is in memory of a deceased parent of a lacrosse player. The bench will not be installed until after the Badger Park parking lot improvements are substantially complete. Councilmember Sundberg asked if there will be a plaque on the bench. Director Darling stated the donor has not indicated to date regarding a plaque. Sundberg moved, Johnson seconded, Adopting RESOLUTION NO. 17 -084 "A Resolution Accepting a Donation for Installation of a Memorial Bench for Badger Park." Motion passed 4/0. 7. PLANNING A. Conditional Use Permit for Coffee Shop with Drive -thru Service and Outdoor Seating Applicant: Dave Watson Location: 19245 and 19285 State Highway 7 Director Darling stated that during its August 28, 2017, meeting Council discussed a conditional use permit (C.U.P.) for the Watson Vinehill, LLC, proposal to redevelop the properties located at 19245 and 19285 State Highway 7 for a coffee shop (Starbucks) with drive -thru service and outdoor seating. She explained the subject properties are located on the frontage road between the intersection of Vine Hill Road /Delton Avenue to the east and Vine Hill Road /State Highway 7 to the west. Currently there is one office building on each of the properties. The proposal includes removing the two office buildings, combining the two properties into one, and redeveloping the new site with the Starbucks. The Planning Commission discussed this application during its March 3, April 4, and May 2, 2017 meetings. The Commission unanimously recommended denial of the application due to the impact on traffic, primarily in the morning. During the August 28 Council meeting staff recommended approval of the application CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES September 25, 2017 Page 3 of 14 subject to three specific improvements to the adjacent roadways. Staff again recommends approval of the application subject to recommendations similar to those made on August 28. First, add an east -bound right turn lane into the site from DeIton Avenue. Second, add a north -bound right turn at the Vine Hill Road/Delton Avenue intersection. Third, add a west -bound by -pass lane on Delton Avenue near the site entrance. During the August 28 meeting, the applicant expressed concerns about the three improvements recommended by staff and offered alternatives. Council ultimately continued the consideration of the application to allow staff time to discuss the proposed improvements with the City of Minnetonka staff and to discuss the number of students per vehicle with representatives from the Minnetonka School District. Staff had provided Council with emails /letters received from Minnetonka and the School District. Minnetonka staff has indicated that the changes in the right -of -way (ROW) would require a ROW permit and a development agreement that would need to be reviewed and authorized by the Minnetonka City Council. The Superintendent of the Minnetonka Schools stated about 625 parking permits have been issued to students for school years 2015 — 2017. Most of the permits are for 2 — 4 person carpools; there are a few exceptions for single occupant vehicles. Staff has reviewed the applicant's concerns and the specific site circumstances and decided to refine its recommended improvements. The City's Transportation Engineer originally modeled his analysis on a standard design for both turn lanes and the by -pass lane which is 200 feet in length with tapers. Since August 28 staff has refined their recommendations based on confined site characteristics. Staff now recommends the turn lanes and the by -pass lane (with tapers) be 100 feet long; that length would better fit the area. The shorter length would accomplish the goal of mitigating the impact of the use on the site. The applicant has reviewed staffs refined recommendations and has agreed to a right -turn lane into the site from eastbound Delton Avenue. The applicant proposed an alternative to the right -turn lane for Vine Hill Road / Delton Avenue; the improvements would be on the west side of the street rather than the east side of the street. That would keep the road further away from the houses in Minnetonka and it allows Minnetonka more flexibility in constructing a trail. Shorewood staff has reviewed the applicant's design which includes pavement widening. Staff has decided that as long as final design meets State Aid standards the concept design showing improvements on the west side of the road is acceptable and would satisfy the condition in the resolution to provide the turn lane. She noted that just prior to the meeting the City received a letter from Minnetonka staff (a copy of which was placed at the dais) commenting on the refined recommendations. She stated the applicant continues to believe that the by -pass lane would not be needed. The applicant has proposed adding a no -left -turn sign into the site off of westbound Delton Avenue from 7:00 — 8:00 A.M. Staff does not think that would be an appropriate improvement for that location and staff continues to recommend the addition of a by -pass lane. Darling noted staff recommends the City Council adopt the resolution granting the C.U.P. Staff believes the proposal could function without further degrading the intersections. She stated staff has received several letters from the applicant and one from resident Paul Stelmachers with specific questions about the traffic study. The applicant's traffic engineer, Vern Swing, has addressed Mr. Stelmachers concerns in writing (a copy had been provided to Council). CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES September 25, 2017 Page 4 of 14 David Watson, with Watson Development LLC, noted he had prepared a written response regarding what was discussed during the May 2 Planning Commission meeting and how the proposal has evolved since that meeting. He distributed a copy of the response to Council. He walked through his response for the record. The Planning Commission had received a copy of the traffic study in late March. He and Vern Swing met with representatives from WSB & Associates in April to discuss the results of the study. But, the level of understanding and the nuisances of the study were not to the level they are now when the Planning Commission voted to recommend denial of the C.U.P. application in May. Also, the issues that should have been discussed to be in line with the City Ordinance were not the primary focus of the discussion. The majority of the discussion was about the existing condition of Highway 7 during the AM Peak Hour and how that condition could be remedied. All parties, like we are now, should have been focused on the development's impact on the adjoining roads; Vine Hill Road and Delton Avenue. With regard to the results of the traffic study, some of the Commission members expressed concerns about the amount of traffic a drive -thru would generate and did not focus on the results of the traffic study that shows the proposed drive -thru will primarily draw from existing traffic, not generate new traffic during the AM Peak Hour. The results being 13 new cars to an existing condition of 900 cars and no change in the level of service. The Planning Commission had not been provided with the clarity people now have on the results of this lengthy and very technical report. There was confusion about his alternative development plan, which does not require a C.U.P., and its impact on traffic. The alternative development plan is a larger scale (4,500 square feet) retail development with multiple tenants and the traffic study shows that type of development would generate more new trips during the AM Peak Hour than the proposed Starbucks development. This comparison was at the request of City staff but was not given the attention it should have by all parties including himself. There are aspects of the proposed development that have evolved since the Planning Commission's May meeting. His group has had multiple meetings with City staff to discuss the traffic study and the projected traffic distributions. He believes all parties have a clearer understanding of the development's impact on the adjoining roads as well as the intersection of Vine Hill Road and Delton Avenue. WSB's proposed improvements were not included as part of the proposed development when the Planning Commission voted. Even though Watson Development does not believe these improvements are needed both parties are discussing the following improvements: ➢ A right turn lane off of Delton Avenue (approximate cost $32,000); ➢ A right turn lane on Vine Hill Road North (approximate cost $30,000); and, ➢ A by -pass lane on Delton Avenue (approximate cost $49,000). He stated people have a much better understanding of the traffic study and the development since the Planning Commission's May meeting. Mr. Watson then provided an update on the results of his meetings with the City of Minnetonka and the Superintendent of Minnetonka Schools, the results of the Starbucks study regarding locations near high school, and his response to the most recent City staff report. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES September 25, 2017 Page 5 of 14 On September 12 he met with the Minnetonka Schools Superintendent Dennis Peterson. After discussing the proposed project with Superintendent Peterson, Superintendent Peterson supports the development. Superintendent Peterson does not have concerns with regard to the proposed Starbucks causing additional backups to Minnetonka High School and he thought the Starbucks could become a great opportunity for parents and students to meet. Superintendent Peterson sent City staff an email stating his position. During the August 28 Council meeting Council requested Starbucks research the drive -thru delivery times for Starbucks located near high schools. Starbucks looked into six locations that are near high schools and the average drive -thru delivery time of that sample group is 50.34 seconds. Starbucks strives to have a delivery time of 50 seconds. Starbucks does not track the number of customers per car but the district managers did state that it was not uncommon to have multiple passengers in the cars when a store is near a high school. With regard to City staff's recommended improvements, he noted that during the August 28 Council meeting he stated the result of the traffic study shows that during the AM Peak Hour (7:00 — 8:00 A.M. on weekdays during the school year) the proposed Starbucks development would not have a noticeable impact on the existing traffic condition. The memo from WSB dated August 23 lists three improvements that WSB says would improve the existing traffic condition with the Starbucks development in place. The criteria for a C.U.P. allows the City to consider "the effect upon traffic into and from the premises or on any adjoining roads." The traffic study that was done for this proposed development, at the request of City staff, shows that the development would not have an adverse effect upon traffic into and from the premises or on any adjoining roads. The results of the traffic study show the existing level of service (LOS) condition, the impact of the proposed Starbucks development with no improvements on the LOS and the impact of WSB's three recommended improvements on the LOS. For the Delton Avenue entrance the existing LOS is B, with the proposed development the LOS would be B, and with the WSB recommended improvements the LOS would be A. For the Vine Hill Road entrance the existing LOS is A, with the proposed development the LOS would be A, and with the WSB recommended improvements the LOS would be A. For the Delton Avenue and Vine Hill Road intersection the existing LOS is F with a delay time of 54.73 seconds, with the proposed development the LOS would be F with a delay time of 53.03 seconds, and with the WSB recommended improvements the LOS would be E with a delay time of 48.63 seconds. The results indicate the proposed Starbucks development would not have an adverse effect upon traffic into and from the premises or on any adjoining roads. WSB's three recommended improvements result in an improvement to the existing condition, but they are not required to mitigate the impact of the proposed Starbucks development. He noted his attorney's letter dated August 28, 2017, to Mayor Zerby and the City Council, states the proposed project satisfies all of the applicable criteria for a C.U.P. established by the City's Zoning Ordinance. The law in Minnesota is that a local government body must approve a C.U.P. application if the applicant satisfies all conditions set forth in the applicable ordinance. Minnesota appellate courts have held that the denial of a C.U.P. is arbitrary and unlawful when the proposed use meets the requirements specified by the relevant zoning ordinance and when the reasons for denial have no factual basis in the record. As it relates to traffic, the City is allowed to consider "the effect upon traffic into and from the premises or on any adjoining roads" when determining whether to grant or deny an application for a C.U.P. The traffic study shows that the proposed Starbucks development will not have an adverse effect upon traffic into and from the premises or on any adjoining roads. The improvements that WSB has CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES September 25, 2017 Page 6 of 14 recommended are not required for this proposed development to meet the criteria for a C.U.P. established by the City's Zoning Ordinance. He reviewed his position related to the three recommended improvements. 1. Add a right turn lane into the site driveway off of eastbound Delton Avenue. Watson response: Although it is not needed as a condition of approval, he is willing to install the right turn lane into the site driveway off of eastbound Delton Avenue as shown on WSB's rendering attached to the September 25 City staff report. 2. At the intersection of Delton Avenue /Vine Hill Road modify northbound Vine Hill Road to add a dedicated right turn lane going east on Delton Avenue. Watson response: Although it is not needed as a condition of approval, he is willing to pay for and install the right turn lane as shown in the alternative development plan presented for this meeting. Add a bypass lane on westbound Delton Avenue to allow westbound cars to pass by cars queued to turn let into the site. Watson response: His group believes this work is not needed and would create an unsafe condition. The traffic distribution shows just 4 cars entering the site during the AM Peak Hour from westbound Delton Avenue. That is 4 cars making that turn over a one hour period. In an effort to show the reality of the situation, he shared with City staff and Council the study (along with videos) he did on September 6 that shows a car making that turn eight times between 7:20 a.m. and 8:00 a.m. and the longest wait time to make the turn was 6 seconds. Based on the distance from the entrance to the intersection and the traffic counts during that time of day, a car turning left off of westbound Delton Avenue would have to wait juts over 1.5 minutes to cause a backup into the Delton Avenue /Vine Hill Road intersection. Adding a by -pass lane would create safety issues. First, a driver heading west on Delton Avenue could accidently or intentionally use that lane as a passing lane. Second, for cars exiting the site onto westbound Delton Avenue they would have to navigate three lanes instead of two. Although it is not needed as a condition of approval, if Shorewood wants he would install a sign that prohibits a left turn into the site off of west -bound Delton Avenue during the AM Peak Hour. Mr. Watson stated that although he does not believe all of the conditions listed in the Resolution of Approval are needed, he was willing to be bound by them subject to the following roadway changes. Under Conclusions in Item A.1 replace "which includes but is not limited to" with "except that the applicant shall." Also, under Item A.1 add the following: a. Add a 100 -foot right turn lane (with tapers) into the site from east -bound Delton Avenue. b. Add a right turn lane from north -bound Vine Hill Road to east -bound Delton Avenue utilizing Shorewood's right -of -way land located on the southwest corner of the intersection of Delton Avenue and Vine Hill Road. c. Install and maintain a sign on west -bound Delton Avenue that says "No Left Turn Into Starbucks from 7:00 a.m. to 8:00 a.m. weekdays." Mr. Watson noted his traffic engineer Vernon Swing, with Spack Consulting, and his legal counsel Bruce Malkerson were present to address any questions Council may have. He then thanked Council for its time. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES September 25, 2017 Page 7 of 14 Vern Swing, with Spack Consulting and representing Watson_ Development, noted he was present to address questions asked by Shorewood resident Paul Stelmachers in his letter dated September 6, 2017. Mr. Stelmachers' questions and Mr. Swing's answers are as follows. ➢ Spack used the designation of "Pass By" trips as opposed to "Diverted or New Trips" which would have shown higher counts coming to the area. Spack's response: Land uses have a variety of trips associated with them based on whether that particular land use is a primary destination or a non - primary destination. For example, a stadium is a primary destination and its trips are typically new trips on the roadway. Homes, apartments, and offices are also examples of primary destinations. Land uses such as gas station /convenience stores, fast food restaurants, coffee shops are pass -by trips that draw from traffic that is already on the adjoining roadways heading to a primary destination. Coffee shops are a pass -by use. They generally do not generate destination based trips; they draw from traffic already on the road. In the AM Peak Hour people generally stop at coffee shops that are on their path to work and ones where they can get in and out of quickly. These trips would be considered pass -by trips. To understand whether vehicle trips using a particular land use are destination or non - destination based, members of ITE (Institute of Traffic Engineers) have spent a lot of time interviewing customers at a variety of stores to find out if their trip is a primary trip or a pass -by trip, and what their origin is and destination is. The results of those types of origin /destination (O -D) studies conducted at coffee shops indicate that during the AM Peak Hour 89 percent of the trips are pass - by trips from the adjoining streets. ➢ Spack used ITE 9 "' edition 0 2012, which relies on data acquired since the ITE 8 "' edition, published 5 years earlier in 2007. So the data they are using is 10 years old at worst and 5 years old at best. Spack's response: That is all true. Yet, the data from studies that are 10+ years old versus studies that are 5 years old shows little variation over that time. While the rate of coffee consumption is on the rise, the rate of new store construction is also on the rise. The off traffic peak store usage may be rising but the peak condition is still dependent on convenience to attract pass -by customers. During the non -peak time there is significantly less traffic on Delton Avenue and quite a bit less on Highway 7 on an hourly basis. If the proposed Starbucks draws trips that are not all pass -by trips at those times they would have less of an impact on the overall function of traffic in the area. In the case of the proposed Shorewood location, during the AM Peak Hours drivers will not choose to leave Highway 7 to wait in a long queue to get to the site, to then wait in long line to get their coffee, and to then wait in a long queue to get back to Highway 7. Instead those drivers will choose a store that is more convenient. Drivers destined to the High School however are already waiting; for them the detour through the coffee shop site is not inconvenient. ➢ Spack used traffic counts only from Delton Avenue, but the Starbucks representative stated that they used counts from Highway 7 (20,000 per day) in their calculus to decide if the site met their minimum criteria for counts. It appears that they want it both ways. Starbucks is counting on New & Diverted Trips to drive business yet Spack is not. Spack's response: That statement is not fully accurate. Spack's traffic study shows the number of New & Diverted Trips during the AM Peak Hour since that is the highest peak time for Starbucks, for Delton Avenue and for Highway 7. In that there are only 13 new cars that would come to the area simply because there is a Starbucks there. During the off -peak times that would not necessarily be the case; some drivers may divert over to Starbucks from Highway 7. The volume of traffic on Highway 7 is obviously important to Starbucks during the non -AM Peak Hour. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES September 25, 2017 Page 8 of 14 ➢ The ITE Trip Generation Manual suggests that "the user may wish to mode trip generation rates presented in this document to reflect ...special characteristics of the site or surrounding area." Ms. Stelmachers wondered if Spack made any allowances for the VERY `special characteristics of this site or surrounding areas'. Can this be verified? Spaek's response: The site is Iocated on a route that provides access to a High School. There are special characteristics associated with school related traffic peaks in terms of when they occur, the intensity, and the duration. This information was all captured in the traffic counts done for the site. As for specific trip generation no "VERY" special characteristics were identified. Mr. Swing noted he had concluded his remarks. Paul Stelmachers, 5210 Shady Lane, noted that he disagrees with Mr. Swing's comment that Starbucks is not a destination business. He stated Mr. Swing used the word generally in the statement "...Coffee shops, particularly in the AM Peak Hour, generally do not generate destination based trips ..." and also in another statement. The intersection being discussed is not a general intersection. He then stated that Mr. Swing also stated he took into consideration that this leads to a school. He does not think it takes into consideration the unique geometries. From his vantage point, common sense tells people that more than 4 cars or 13 cars are going to becoming off of Highway 7. He explained that he has been down to County Road 101 and Highway 5 where there is a new Starbucks and plenty of cars are coming off the Highway even though there is a pass -by there. He asked for a little more time to assess all of the new data provided by or on behalf of the applicant before Council makes its decision. Councilmember Johnson stated Mr. Watson noted that the letter from his attorney dated August 28, 2017, states "...the project proposed by Watson satisfies all applicable criteria for a CUP established by the City's zoning ordinance." He asked Attorney Keane if he agrees with that statement. Attorney Keane explained that the traffic analysis undertaken by WSB came up with recommendations to mitigate the adverse impacts of the traffic that would be generated in the area as a result of the proposed project. They also generated conditions that in their professional judgement would address the mitigation measures to improve traffic flow under the trip generation conditions of the proposed project. The imposition of reasonable conditions that mitigate those adverse consequences are in the determination of Council reasonable and connected to the project demands; they are consistent with those required to allow the project to move forward. In the absence of those, the City's traffic consultant concluded that degradation of the level of service and traffic conditions would degrade the existing conditions. Those would not be consistent with the findings of approving the conditional use permit. The findings with conditions recommended by the City's expert have been determined to conform to the requirements of the City and are reasonable for a finding of approval. Councilmember Sundberg stated she could support delaying making a decision to the next Council meeting to allow time to assess the comments made this evening. Hopefully all Councilmembers will be in attendance at the next meeting. Mayor Zerby stated the letter from the City of Minnetonka mentions a possible trail. He asked where that would be located. Director Darling stated Minnetonka staff is talking about constructing a trail along the east side of Vine Hill Road from the intersection with Delton Avenue down to the existing trail further south at Vine Hill Road. Zerby asked if the by -pass lane would leave enough room for the trail. Darling explained Shorewood staff spoke with Minnetonka staff about how much room would be needed for the trail. It could fit in. But, under the alternative the developer proposed more of the improvements would be on the west side of the roadway where there are fewer trees and grade changes; she does not think there are any overhead power lines there either. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES September 25, 2017 Page 9 of 14 Zerby expressed concern about pedestrian access to the site. He stated he thought some students are allowed to leave the school grounds for hunch. Zerby then expressed discomfort about Mr. Watson not wanting to accept staff's recommendation to add a bypass lane on westbound Delton Avenue to allow westbound cars to pass by cars queued to turn left into the site and proposes to instead install a sign that prohibits a left turn into the site off of west bound Delton Avenue during the AM Peak Hour. That enforcement responsibility falls on the City though the South Lake Minnetonka Police Department (SLMPD). He stated lie finds it difficult to come up with a location where a police officer could park in order to enforce that signage during the AM Peak Hour. If there is no enforcement drivers will not adhere to the sign. He does not think a sign is an adequate replacement for staff's recommendation. He noted a couple of the members of Council had told him a tweet had been sent out on social media that said Council was going to vote on a Starbucks. He clarified Council is not considering a vote on Starbucks. It is a vote for a C.U.P for a coffee shop with a drive -thru. The drive -thru is the condition Council is discussing. A coffee shop is a valid use under the current Ordinance. He expressed his appreciation for gaining a better understanding of the traffic concerns people have. He did not think the Planning Commission had been provided with all of that information. He stated the proposed site area is zoned for commercial. It is ripe for redevelopment. The existing buildings on the two parcels are dated. if the Starbucks development does not come to fruition something else will likely be built there. He expressed his appreciation for staff s efforts related to this application. Zerby noted he does not think it is necessary for all members of Council to be present in order to call for a vote. He stated there has been extensive discussion about this by Council and the Planning Commission. Councilmember Sundberg stated she agreed that Council has heard a great deal about what is being proposed and about the improvements recommended. She expressed her appreciation for all of the thorough work put into this by residents, the applicant and staff. She thought there had been thorough discussion about this. She noted she would be comfortable with Council voting on this item this evening. Councilmember Johnson stated the applicant's willingness to add a right turn lane from north -bound Vine Hill Road to east -bound Delton Avenue utilizing Shorewood's right -of -way land located on the southwest corner of the intersection of Delton Avenue and Vine Hill Road eliminates the City of Minnetonka's concern about having improvements made on the east side that could interfere with the construction of a future trail in that area. Councilmember Labadie stated this has been discussed by the Planning Commission and Council a number of times and the residents have had an ample opportunity to voice their concerns. She then stated even though one member of Council is not present she is ready for Council to vote on this application. Sundberg moved, Zerby seconded, Adopting RESOLUTION NO. 17- 085, "A Resolution Approving a Conditional Use Permit for Redevelopment of 19245 and 19285 State Highway 7 for a Starbucks with a Drive -Thru Service Window" as presented. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES September 25, 2017 Page 10 of 14 Councilmember Johnson stated this is a difficult situation for a very specific area with very specific traffic concerns. The traffic concerns already exist. Traffic is something any developer who would want to redevelop the site would have to deal with. Through the process this application has gone through there are now three traffic mitigation conditions that would be done as part of the proposed project that may bring some relief. He noted that the traffic situation warrants further discussion with the Minnesota Department of Transportation about the Highway 7 and Delton Avenue situation. Councilmember Sundberg stated she agrees that the traffic situation around the Highway 7 and Delton Avenue is problematic noting there are several problem areas along the Highway 7 corridor. Yet, she does not think those existing problem areas merit jeopardizing a legitimate development on that site. Mayor Zerby stated Council has clearly heard the concerns expressed by the residents. The City and the applicant have spent a considerable amount of resources trying to mitigate some of the existing traffic issues. He thought the intersection and the proposed business would both benefit from the proposed improvements. He also thought the coffee shop is a good use of the site. He reiterated the site was going to be redeveloped whether or not it would be for a coffee shop. He again expressed his appreciation for all of the effort that staff and the applicant have put into this proposed project to date. Councilmember Johnson commended the neighborhood residents providing their input. Councilmember Labadie also thanked staff for all of the time and effort they put into this. She stated that every question Council asked has been answered. She noted she was appreciative of people contacting the Minnesota Schools Superintendent Dr. Peterson to discuss the proposal. She also thanked the residents for coming forward to express their concerns. Motion passed 311 with Labadie dissenting. 8. ENGINEERING/PUBLIC WORKS A. Minnesota Department of Transportation Local Road Improvement Grant Program Administrator Lerud explained that in early August 2017 the State announced it was going to have Local Road Improvement Grant Program. The application details for that program were published the end of August. The Program is geared toward, for example, making safety improvements to locally owned roads. City staff and WSB & Associates had met to discuss grant opportunities. A grant is up to a $1 million match. The corridor staff is talking about is the Country Club Road / Yellowstone Trail / Lake Linden Drive corridor. The issues along that corridor have been discussed numerous times. The estimate cost for making roadway, trail, and stormwater management improvements along the corridor is $4 - $5 million. The Program is for roads only. The grant writer with WSB thought the City's application would likely rank in the middle of other grant applications because the formula favors more densely populated areas. Staff recommends moving forward with preparing the application. Staff also recommends Council decide on and couple of other things before granting the approval to prepare the application. First, Council must be comfortable with the long odds for funding and noted gathering the information for this application could help with other things in the future. Second, if the City is awarded a grant Council should be committed to having the City spend at least the minimum amount to match the grant and likely much more to complete the work. The funding for the remainder would likely require the City to bond for it. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES September 25, 2017 Page 11 of 14 Lerud noted that this is an opportunity to potentially have 25 percent of the cost for roadway improvements from sources outside the city for a road that the city has stated needs to be done. Councilmember Sundberg asked what the grant money would be used for. Administrator Lerud explained the roadway improvements would include a 32- foot -wide roadway surface and the installation of curb and gutter. Any other work would not be reimbursed. Lerud thought the roadway work itself would cost more than $1 million. The City would look to other agencies to help, for example, fund trail extensions. Sundberg then asked if some of the Traffic Committee's recommendations would be implemented. Lerud noted that is part of the reason for making the application. Sundberg asked if the $3,500 cost to help prepare the application is enough. Lerud noted he thought the cost is reasonable and stated because of the expedited time frame to submit the application outside resources are needed to help prepare the application. Sundberg moved, Labadie seconded, accepting the professional services agreement to prepare a grant application for the Local Road Improvement Program for improvements along the Country Club Road / Yellowstone Trail / Lake Linden Drive corridor. Motion passed 4/0. 9. GENERAL/NEW BUSINESS A. Reroofing the Southshore Center Administrator Lerud explained that during Council's August 28, 2017, work session he presented a draft Capital Improvement Program (CIP) for improvements to the Southshore Center (SCC). It was to a large extent based on the long -term capital maintenance plan for the Center prepared by Building Official Pazandak a few years ago. The improvements were not done before because of the issue about ownership of the SSC. The City now owns the building. Staff strongly believes the roof and gutters on the SSC need to be replaced. The amount budgeted to do that work is $45,000. The City received two quotes to do the work. One was from Incline Exteriors for an amount of $42,916. The other was from Today's Exteriors for an amount of $44,100. The Building Official is familiar with both companies and believes both do good word. Staff recommends Council accept the low quote from Incline Exteriors. The work will be done before the end of November 2017. Director Brown noted the building is 22 years old and that it is the original roof. Labadie moved, Johnson seconded, accepting the low quote from Incline Exteriors for an amount of $42,916 and authorizing the replacement of the roof and gutters on the Southshore Center. Motion passed 4/0. 10. STAFF AND COUNCIL REPORTS A. Administrator and Staff 1. Monthly Budget Report Mayor Zerby noted the meeting packet contains a copy of the August 2017 Monthly Budget Report. Zerby asked staff to provide Council with an update of what the balances are for the other City Funds for its next meeting. CITY OF SHOREWOOD REGULAR COUNCIL, MEETING MINUTES September 25, 2017 Page 12 of 14 Other Director Brown explained there had been a watermain break at County Road 19 near Wood Duck Circle. There is a leaky valve at Minnetonka Drive and Gillette Curve; it is a minor leak. He hopes that is addressed this week noting it does involve a dead -end line to CUB Foods. Ile then explained he has spoken with a contractor the City typically uses who has started a program to do routine digs for corrosive soil issues. Brown stated he, along with the help of Engineer Fauske, secured a matching grant for the City from Metropolitan Council Environmental Services (MCES) for Inflow and Infiltration (I &I) reduction. He explained that typically the City budgets $70,000 annually in the Capital Improvement Program to reduce the inflow into the sanitary sewer system. The details for the agreement have yet to be worked out. When that is done staff will bring the agreement before Council for approval. Mayor Zerby stated that he and Director Brown have been discussing his desire to be able to hang things like flags on light poles in the Smithtown Crossing and County Road 19 area. That would require a different mounting bracket. Brown wanted to know if the rest of Council supports doing that. Councilmember Johnson stated he would support doing that and noted that he thought it would be a great place to advertise Arctic Fever. Mayor Zerby stated it was his recollection that on a regular basis Council would approve via resolution televising segments of the City sanitary sewer line to find out where repairs needed to be made. He does not remember approving that lately. Director Brown explained that recently there was a backup in the Grant Lorenz Road / Birch Bluff Road / Howards Point Road area. The City's insurance company the League of Minnesota Cities Insurance Trust (LMCIT) required the City to televise that segment of right - of -way. Once the City receives the Grant from MCES staff will determine what else has to be done besides lining. Zerby stated the City use to televise segments on a rotating basis in the past. Brown stated the budgeted funds were used to address that backup issue. Engineer Fauske provided an update on a number of local projects. ➢ The street sweeping for the 2017 Sealcoat Project has been completed. The striping should be completed soon. ➢ The contracts for the 2017 Street Reclamation Project have been signed. The roads for that project will remain open during the work. Residents will be advised that there will likely be delays. The paving is to be completed by October 31, 2017. Final restoration is to be completed by November 11. Mayor Zerby stated a culvert needs to be replaced along Eureka Road and questioned how that road could remain open. Fauske stated the contractor could do half closings and residents would be kept aware via the City's website. Director Brown stated that would be discussed during the preconstruction meeting and that he might recommend to the contractor that roadway be closed to expedite the project because there are alternative driving routes. ➢ For the Badger Park Improvements Project, trees were removed last week and pavement was being removed earlier in the day. Curb and gutter will be removed tomorrow. Power was erroneously disconnected on September 18, Xcel Energy restored the power on September 20. Brown is working with electrical companies to obtain quotes to move the electrical panel to a new location. ➢ For the watermain extension project near Chaska Road and south of Highway 7, driveway replacements took place on either September 14 or 15. The second lift of asphalt was put done on September 19, The Road was opened again on Saturday morning. There is some cleanup work CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES September 25, 2017 Page 13 of 14 remaining to be done. Zerby asked when the power lines along the area will be buried. Fauske stated she did not know. ➢ For the Minnetonka, Country Club (MCC) development, crews have been working on the installation of sanitary sewer system on Ashire and watermain from Smithtown Road to the south. ➢ Pavement corings work should be started in the near future. Once the coring samples have been taken the pavement data will be documented and the samples will be put back in. ➢ The work on the ditch along Smithtown Road at Star Lane is complete. Fauske then provided an update on other agency projects. ➢ In the City of Minnetrista, the Enchanted Lane reclamation project will begin shortly. Some Shorewood residents will be impacted. Access will be maintained but there will be delays. ➢ The work at the Vine Hill Road / Highway 7 intersection is getting close to being complete. But, the signal bases are backordered until November. ➢ Metropolitan Council Environmental Services (MCES) work to make a water connection has been delayed because of rain. ➢ For the Mill Street closure in the City of Excelsior, it is anticipated the watermain work will be completed in mid- October. There is some confusion about the detour signage in part because of a closure in the City of Chanhassen. ➢ Minnetonka Boulevard in the City of Greenwood is scheduled for a mill and overlay which started on September 21 and was to last for four days. The road will be /was closed for thru traffic from the east side to the west side of St. Albans Bay Road. Mayor Zerby stated he thought the gas main in the right -of -way at the intersection of Highway 7 and Highway 41 is being expanded. It appears to him that the work is done but there are still concrete jersey barriers there closing most of the right turn lane. He thought the barriers have served their purpose and should be removed. Director Brown explained the pipe work is complete and the trenches have been filled in but there is still top soil and restoration work that has to be done. Director Brown stated that as part of the Smithtown Road / Star Lane storm sewer project the Public Works ravine was restored. Because of the rain the turf has established pretty well. Director Darling noted there is a joint Council and Planning Commission work shop scheduled for September 26 to hear an update about the Comprehensive Plan update activities. Councihnember Johnson and CounciImember Sundberg both noted they could not attend. In response to a question from Mayor Zerby, Director Brown stated the replacement radar sign for Country Club Road is still on order. Administrator Lerud stated he had spoken with the Chanhassen Park Director about problems at Cathcart Park and which City is responsible for making improvements. The Director was not very receptive. Staff has discussed having Shorewood annex that Park and then it can be maintained to Shorewood's level. Councilmember Sundberg and Mayor Zerby stated they thought that would make sense. B. Mayor and City Council Mayor Zerby stated he and Administrator Lerud had an opportunity to meet with Bob Byers from Hennepin County Transportation Planning the previous week. They discussed alternatives for the Lake Minnetonka LRT Regional Trail crossing at County Road 19. They talked about potentially connecting trails in Shorewood / Tonka Bay / Excelsior along County Road 19. They also talked about completing CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES September 25, 2017 Page 14 of 14 the Mill Street trail segment in Shorewood, Excelsior and Chanhassen. He encouraged Mr. Byers to bring those ideas back to his staff. Lerud noted the deadline for getting those included in the County's 5 -Year Transportation Plan is coming soon. Councilmember Sundberg noted that Shorewood resident Dorothy Peterson has been appointed to the Riley- Purgatory - Bluff -Creek Watershed District Board of Directors. She stated she participated in the strengths finder exercise this past summer. She found it to be very valuable. She thanked Clerk Thone for organizing that. Mayor Zerby stated he learned that Excelsior Fire District Chief Gerber was part of the Minnesota All Hazard Type 3 IMT (Incident Management Team) that was deployed to Monroe County in Florida in response to Hurricane Irma. He was thankful for Gerber's participation. 11. ADJOURN Labadie moved, Johnson seconded, Adjourning the City Council Regular Meeting of September 25, 2017, at 8:35 P.M. Motion passed 4/0. RESPECTFULLY SUBMITTED, Christine Freeman, Recorder ,�JAb k- �" �� Sandie Thone, City Clerk