02-26-18 CC Reg Mtg MinutesCITY OF SHOREWOOD
CITY COUNCIL REGULAR MEETING
MONDAY, FEBRUARY 26, 2018
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 7:02 P.M.
A. Roll Call
Present. Mayor Zerby; Councilmembers Johnson, Labadie, Siakel, and Sundberg; Assistant City
Attorney Morben; City Administrator Lerud; City Clerk Thone; Communications Director
Moore; Planning Director Darling; and, City Engineer Fauske
Absent: None.
B. Review Agenda
Labadie moved, Johnson seconded, approving the agenda, as presented. Motion passed 510.
2. CONSENT AGENDA
Mayor Zerby reviewed the items on the Consent Agenda.
Labadie moved, Sundberg seconded, Approving the Motions Contained on the Consent Agenda and
Adopting the Resolutions Therein.
A. City Council Work Session Minutes of February 12, 2018
B. City Council Regular Meeting Minutes of February 12, 2018
C. Approval of the Verified Claims List
D. Approval of Freeman Park Concession Agreement
Motion passed 510.
3. MATTERS FROM THE FLOOR - None
4. PUBLIC HEARING - None
5. REPORTS AND PRESENTATIONS - None
6. PARKS
A. Report by Commissioner Rock on 02 -13 -18 Park Commission Meeting
Planning Director Darling gave an overview of the February 13, 2018 Park Commission Meeting. There
was discussion surrounding the rehabilitation of the Badger Park playground. They considered equipment
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shaped like a pirate ship and ultimately chose a local contractor's rendering for it, so a full site plan will
now be reviewed. The City is applying for two grants to help defray some of the costs for improvement of
the park. The Parks Commission will be reviewing the park maintenance program before the summer Park
Tours. They would also like to conduct a winter Park Tour to take a look at warming house issues. The
Park Commission took a look at some concerns that were raised with the Freeman Park ice rink. Nat
Gorham will be leaving the Park Commission and moving to serve on the Planning Commission and Holly
Ashmore will be taking over his vacancy on the Park Commission.
Mayor Zerby has heard that there was consideration being given to tearing out the asphalt at the Southshore
Community Park. There had also been talk about putting in a dog park. He asked if there was any update
on those items.
Planning Director Darling stated that the Park Commission had looked at putting in a master planning effort
at the park. They have asked for an estimate of the cost for removing the asphalt so that will be discussed
at the next meeting.
7. PLANNING - None
8. ENGINEERING /PUBLIC WORKS
A. Approve Memorandum of Understanding with Minnehaha Creek Watershed District
to Coordinate Water Resources Planning and Capital Improvement Planning, City
Project 18 -02
Engineer Fauske stated that this item had been discussed at a prior Council meeting, but all of the documents
were not included in the packet, so it was being brought to tonight's meeting with everything necessary for
the Council to make a decision. Engineer Fauske gave a brief overview of the agreement between the City
and the Minnehaha Creek Watershed District.
Administrator Lerud noted that the City Attorney had reviewed the Memorandum of Understanding and
had no issues with it.
Labadie moved, Siakel seconded, Approving RESOLUTION NO. 18-015, "A Resolution to Authorize
the Execution of a Memorandum of Understanding with Minnehaha Creek Watershed District to
Coordinate Water Resources Planning and Capital Improvement Planning, City Project 18 -02."
Motion passed 510.
B. Update on Drainage Concerns: 24890 Yellowstone Trail (Mott Property)
Engineer Fauske explained that in December, Whitley and Linda Mott came to the City and presented some
drainage issues they were seeing on their property. Council directed staff to take a look at the issues. She
noted one of the things not included in the packet was information that was received after the packet had
been distributed, regarding the lowered invert elevations of the culvert pipes. She stated that this would be
reviewed in greater detail. She reviewed some of the hypotheses explored as to what was happening in this
location including: location within the high -water level; rainfall events; crushed drain tile; pumping on the
nearby golf property; wetland pipe inverts; drainage calculations; filled percolation areas.
Whitley Mott, 24890 Yellowstone Trail, asked for the elevations on the invert level on the outflow, because
if there isn't much of a difference, there isn't going to be much flow through the pipes. He stated that he
has also had engineers look at the situation and evaluate the numbers and noted that he had provided this
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report to the City. He stated that he believes the invert is at 953.2 and the exit point is at 952.8. He stated
that tantamount to this whole thing is that water is coming into the retention pond and Mattamy Homes
made the retention pond bigger and lowered the walls. Mr. Mott stated that he and his wife have been living
on this property since 1995 and before that were members of the golf course, and this is a change in the
condition of what they have been living with before the changes were made by Mattamy Homes, to the
retention pond. He stated that drain tile is evident in the area of pond 91 and Mattamy did bring heavy
equipment across the area, so he feels it is possible that the drain tile could have been crushed. He stated
his desire is that when there is a one -inch rainfall, that they do not have water draining onto their property.
He noted that he had shown Engineer Fauske video from April 19th that weather statistics consider a one -
inch rainfall and the new pipe is completely submerged and water is flowing onto their property. He stated
that he supports new development but does not want their land adversely affected by the drainage issues.
He stated that this has also created a lot of problems with trees in that particular location and many have
fallen down. He noted that Mattamy has stopped responding to phone calls from them when there is water
on the Mott's land because they say that they built everything to the standards put forth by the City and
their responsibility has ended.
Mayor Zerby stated that Mr. Mott had included a few e -mails showing correspondence between Mattamy
and the Motts but noted that they were two years ago with Rick Packer. Mayor Zerby asked about current
communications. Mr. Mott stated that his understanding is that Rick Packer is no longer on this project and
onto something else. He stated that he had contacted Public Works Director Brown as well as Mattamy
when he was told that they had done all they could and were not going to do anymore, so he should have
records.
Mayor Zerby asked when that conversation had taken place and if he had copies of that communication.
Mr. Mott stated that Public Works Director Brown should also have that information. He stated that he has
a full log of who he has spoken with, the date and time off all the calls, however, he did not bring that to
tonight's meeting. He stated that he is happy to share videos as well as other documentation on this issue
with the Council. He stated to answer Engineer Fauske question about whether the golf course pumped in
the past, he stated that since they have been there, in 1995, the golf course never pumped and there were
not water problems. Mr. Mott stated that he did not feel this situation should be falling on he and his wife
to fix because it is not their issue. The engineer that Mr. Mott hired stated that there are solutions to the
problem. He reiterated that he shouldn't have had to hire his own engineer at all because residents expect
the City to stand up for its citizens in this type of situation.
Councilmember Siakel asked what Mr. Mott would like the Council to do. Mr. Mott stated that first and
foremost, he would like the City to find a solution. Councilmember Siakel asked what Mr. Mott saw as the
solution to the problem. Mr. Mott stated that at one time, Mattamy had talked about putting in drain tile,
but he is not an expert, so the engineers should figure out what is the best solution. He simply wants the
water to stop coming onto their property.
Councilmember Johnson stated that Mr. Mott had mentioned that there are lots of trees down because of
the impact on the water. He asked if an arborist had looked at the trees in the area to see if water really was
the problem.
Mr. Mott stated that he had not, but the trees are laying there with their entire root balls up and exposed.
Councilmember Johnson stated that the City has contracted with an arborist and it included a set number of
private visits. He is not sure if the City has gotten up to the limit, but suggested that perhaps that is
something that could be considered in this case. Administrator Lerud stated that the contract started over
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in January, but the arborist was only contracted to look at certain species of trees, not to determine that
status of all trees. The arborist would be available if Mr. Mott wanted to hire him.
Mr. Mott stated that he no interest in hiring an arborist. The trees are old growth trees and not swamp
variety and wouldn't be that size is this was supposed to be swamp land, as some have suggested.
Councilmember Johnson asked when the "as built" survey would be completed and who would make the
determination.
Engineer Fauske stated in addition to the invert elevations that she had mentioned earlier, another area to
examine at would be how the ground surface has been altered in that area and perhaps go out and get some
ground shot elevations to see what has been disturbed and to what magnitude and how that would change
from the drainage model completed.
Councilmember Siakel confirmed a comment from Engineer Fauske's report that said the pipe was buried
lower than the original plan. She asked if that meant the drainage pipe wasn't installed according to the
specifications from the original plan.
Engineer Fauske stated that was correct and the water resources engineers are looking to see if by that pipe
being buried lower than the original plans, it changed the drainage model.
Councilmember Siakel asked about a comment in the report about extra fill from the developer.
Engineer Fauske stated that was in relation to the percolation areas with the old rail bed material. The
developer did place about 12 feet of additional fill up against the rail bed area. She stated that she had
brought that up because of a question that Mr. Mott had asked regarding that material. However, it's the
water resources engineer's opinion that the fill placed up against the old rail bed has not impacted the
drainage in the area.
Mr. Mott stated that bringing in that much fill over the rail bed area, in his opinion, is another changed
condition.
Mayor Zerby asked it Mr. Mott had plans to subdivide this property.
Mr. Mott stated that he had worked with Brad Nielsen, before he left, on a pre- development plan. He stated
that he doesn't want to get to a point where someone can say the property has been sullied and is considered
a wetland. He stated that preliminary plans are already at the City and he would be glad to share them with
the Council.
Councilmember Siakel stated that she is unsure what the City's responsibility is in this situation, but feels
the developer needs to be held accountable. From the information presented tonight, it appears that there
are a few things the developer did not do according to spec and perhaps the City should be holding them
accountable to doing them correctly. She suggested that perhaps it is a legal question, but she is unsure
how to determine what the City's role is in this matter.
Engineer Fauske stated that the information on the "as built" specifications and the elevations of the invert
culverts came in after the packet was given to the Council. Staff will continue to work with the developer
to look at whether this changed the drainage and will update the Council. She stated that she also needs to
revisit the development contract documents regarding grading at this location.
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Councilmember Sundberg stated that it appears clear to her, that the Motts have no responsibility in what
is happening to their property right now. They brought a property on a golf course that has been there since
the early 1900's, so that is a long chunk of history. She noted her concerns when she reads that it is
"returning back to historical levels" because we don't know what those levels were and there have been
many development changes in the area, as well. She thinks the Council needs to focus on what is the
responsibility of the developer.
Councilmember Siakel stated that she would suggest acting quickly and seek resolution sooner, rather than
later. She feels Mattamy should be held accountable to what they original agreed to and suggested that in
addition to the engineer digging into this issue, that perhaps legal counsel should look into this, as well.
Councilmember Labadie asked for our legal counsel to brief the Council on their legal opinion of potential
liability in this case.
Councilmember Johnson suggested that should be conducted in a closed session, since it is a legal situation.
Mayor Zerby stated that there is still more information to be gathered but agreed that a legal opinion should
be done in a closed session.
Councilmember Labadie she would like there to be a two -prong direction for staff, coming out of this
meeting. The first, to authorize Engineer Fauske to continue researching and seeking the documents she
needs, but secondly, to have City Attorney Keane update Council on any relevant statutes or case law with
regard to liability of the developer.
Mayor Zerby stated that he agreed and was comfortable giving the direction to Engineer Fauske to continue
researching and looking into the original plans. He noted that the end of winter is coming, which is typically
not a great time to have drainage issues.
Councilmember Labadie reiterated that she would also like to direct City Attorney Keane to draft a memo
to the Council or direct a closed session meeting with the Council to advise on legal issues.
There was a consensus of the Council to move forward in researching the original plans for development
to the current situation and direct the City Attorney to advise on any legal issues surrounding this drainage
problem.
Mr. Mott asked how he and his wife would be informed as things moved forward.
Administrator Lerud assured Mr. Mott that staff would keep the Motts informed about meetings as well as
any relevant information that becomes available.
9. GENERAL /NEW BUSINESS
A. Utility Rates
Administrator Lerud explained that the City reviews the rates annually and recommends appropriate levels
for the upcoming years. The City contracted with Ehlers and Associates in 2013 to do a rate study for all
three enterprise funds. As a result of this study, the City has been regularly increased its sewer rates
approximately 3% a year. Storm sewer funds were recommended to be raised 10% per year until those
funds were adequate. However, the water fund has not had an increase since 2010 and is not covering
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expenses with utility revenue. The proposed rate increases are as follows: 5% for water; 3% for sewer;
10% storm water management to go into effect June 1, 2018.
Siakel moved, Labadie seconded, Approving ORDINANCE 553, "Utility Service Charges" with rate
changes to be in effect as of June 1, 2018. Motion passed 510.
B. New On Sale, Wine and 3.2% Beer License — Tino's Cafe Pizzeria
Clerk Thone explained that this application is for the location at 19215 Highway 7. The applicant, Michael
Catain, has passed the background check and paid all the fees associated with the application. If this is
approved by the City, then the State will do a premise inspection and if approved, the City will issue the
license to Tino's Cafe Pizzeria.
Michael Alan Catain stated that he acquired Tino's Cafe Pizzeria in December and really wants to retain
the mom and pop shop feel, but. he would like to get into events like the Taste of Tonka and be able to get
some Excelsior, Wayzata, or Mound local brews and even support wineries in the area.
Councilmember Sundberg asked if Mr. Catain has operated other small restaurants.
Mr. Catain explained that his family business has owned Cataina's, which was a sit -down restaurant in
California and had a take out and delivery establishment called Mike's Pizza and Pasta, in Missouri.
Councilmember Sundberg stated that she assumed obtaining a liquor license would increase his business
and asked if his parking would be adequate.
Mr. Catain stated that they assume so and, if not, they will cross that bridge when they come to it. Starbucks
bought the building next to them, so he is unsure how that will impact the parking situation. Many times,
in the summer, people just walk over to them. Some ideas that they have been considering were perhaps
finding a way to fence in an area and allowing people to bring their dogs and having a mini -dog area for
meet and greet.
Councilmember Sundberg asked Clerk Thone if the parking would be adequate. Clerk Thone stated that
she does not know, and this license would be based on seating capacity and they do have enough.
Mayor Zerby noted that if Tino's wanted to serve alcohol outside they would have to come back and amend
the license. Mr. Catain stated that they currently have no plans to serve alcohol outside and just wanted to
be able to serve it inside, for now.
Johnson moved, Sundberg seconded, Approving RESOLUTION NO. 18 -20, Tino's Cafe Pizzeria,
Wine /3.2 Percent Malt Liquor and Special Sunday Sales Liquor License. Motion passed 510.
C. Liquor Licensing Code Amendment
Clerk Thone noted that the last thorough review of the City's liquor code was conducted in 2007. She
reviewed the proposed changes to the code to ensure it is consistent with State statute.
Johnson moved, Siakel seconded, Approving ORDINANCE 554, Amending Shorewood City Code
Chapter 401, Liquor Regulations, as presented. Motion passed 510.
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Johnson moved, Siakel seconded, Approving RESOLUTION NO. 18 -021, "A Resolution Approving
Publication of Ordinance 554 Amending Shorewood City Code Chapter 401 Liquor Regulations ".
Motion passed 510.
D. Updated City Master Fee Schedule
Clerk Thone reviewed the changes that were adopted in Ordinance 554 and the changes they would create
in the 2018 Master Fee Schedule.
Johnson moved, Labadie seconded, Approving RESOLUTION NO. 18-022, the 2018 Updated Master
Fee Schedule. Motion passed 510.
E. Southshore Center
Administrator Lerud explained that staff would like feedback from the Council on a few design items. He
displayed some proposed flooring options, cabinet designs and a chair option.
Councilmember Johnson stated that his feedback is the same as it was at the last meeting. Selecting these
materials without knowing what our "branding" direction is going to be gives him concern. If the design
is nautical theme, it will go one way and rustic would go another, so he is uncomfortable making choices
without having this information.
Administrator Lerud stated that the philosophy behind this design is that they want it to be something that
is not trendy and will not go out of style too quickly. He feels the color scheme and design they are
proposing does that.
Administrator Lerud noted that the City can purchase all 200 chairs within out budgeted amount.
Councilmember Siakel asked if there was actually a need for 200 chairs.
Administrator Lerud stated those were good questions and for tonight's meeting, he was looking for
direction from Council on the style of the chair. He stated that the vendor has also been asked to provide a
discount for taking our old chairs. So, when that information is received, staff will come back with the
proposal. He reviewed some of the proposed costs and noted that the approximate cost for the flooring was
$42,000 installed through the building, which is slightly higher than what was estimated in December. The
chair cost should be slightly under the budgeted amount and the cabinets are right at the estimate.
Mayor Zerby stated that he thought the Legion had just put in similar vinyl tile flooring and suggested going
over and taking a look at it before making a final decision. It was suggested that once the new lighting was
installed that samples of the colors be put on the walls so it could be judged more accurately in its location.
Zerby moved, Sundberg seconded, to direct staff to move forward with the choices, as presented, for
flooring and cabinetry as well as bring back more information on the chairs and the paint, at a future
date. Motion passed 510.
F. Website Proposals Update
Communications Director Moore noted that she had been looking into various vendors that would serve the
City, the Arctic Fever site as well as the community center website. She stated that as she reviewed the
proposals, one stood out in services offered as well as price and noted it was the same company responsible
for the City of Woodbury's site, which the Council had stated they liked, at the retreat. Staff is
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recommending going with Revize for our new website. The initial set up cost is $8,000 and they do not
require the City to sign a contract. Part of their proposal also included taking all of our forms and making
them ADA compliant. The annual fee is $1,900.
Mayor Zerby noted that if we stick with Revize for four years, they will redesign our website for no charge.
Communications Director Moore stated that if Council approves this, it will probably take about 3 or 4
months before everything is ready in the new website.
Sundberg moved, Johnson seconded, Approving RESOLUTION NO. 18 -019 "A Resolution
Accepting Quotes for Revize Website". Motion passed 510.
10. STAFF AND COUNCIL REPORTS
A. Administrator and Staff
Engineer Fauske stated that there had been discussion of a possible addendum to the feasibility study for
watermain construction to Riviera and looping it to the Cub Foods site. This will be brought to Council in
the near future, once staff has time to take a look at some easement issues that have cropped up. Engineer
Fauske stated the other report she would like to give to the Council is in relation to Chaska Road and
concerns raised by resident, Cindy Marr, with the traffic. At the time the concerns were raised, the City
felt it may be a good idea to wait until some occupancy in the Shorewood Landing development was
established before this was addressed. She stated that staff now feels it may be time to take a look at some
of those issues. She has begun conversations with our traffic engineers and will be bringing something to
the Council at a future meeting.
Mayor Zerby noted that he had been going through paperwork and signing things and would like
clarification from Clerk Thone about the ability to sell strong beer and not just 3.2% on the Tino's Cafe
Pizzeria application.
Clerk Thone explained that the form Mayor Zerby was referring to came from the State. She understands
that it can appear a bit confusing, but when an establishment has both licenses for wine and 3.2% malt
liquor, that allows you, per State statute, to sell strong beer at your establishment.
B. Mayor and City Council - None
11. ADJOURN
Johnson moved, Labadie seconded, Adjourning the City Council Regular Meeting of February 26,
2018, at 8:39 P.M. Motion passed 510.
ATTEST:
Scott Zerby, Mayor
Sandie Thone, City Clerk