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05-23-18 CC Reg Mtg MinutesCITY OF SHOREWOOD CITY COUNCIL REGULAR MEETING MONDAY, APRIL 23, 2018 MINUTES 1. CONVENE CITY COUNCIL REGULAR MEETING Mayor Zerby called the meeting to order at 7:00 P.M. A. Roll Call 5755 COUNTRY CLUB ROAD COUNCIL CHAMBERS 7:00 P.M. Present. Mayor Zerby; Councilmembers Johnson, Labadie, and Sundberg; City 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 Mayor Zerby made changes to the agenda as follows: Add Commissioner Bean's Service Award to 5A and Move 9C to 9A. Sundberg moved, Labadie seconded, approving the agenda as amended. Motion passed 4/0. 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 Regular Meeting Minutes of April 9, 2018 B. Approval of the Verified Claims List C. Liquor License Renewals, RESOLUTION NO. 18 -035, "A Resolution Approving 2018 Liquor License Renewals" D. Accept Proposal for Safety Assure Training, RESOLUTION NO. 18 -036 "A Resolution Accepting Proposal for Safety Consultation Services, SafeAssure Consultants, Inc." E. Employee/Volunteer Appreciation Event F. Approval of Seasonal Hire Employees G. Authorize 4M program, RESOLUTION NO. 18 -037, "A Resolution Authorizing Membership in the 4M Fund" H. Authorize the Advertisement for Bids for the 2018 Seal Coat Project, RESOLUTION NO. 18 -038, "A Resolution Approving Plans and Specifications and Authorizing Advertisements for Bids for 2018 Seal Coat Project, City Project 18 -05" Motion passed 4/0. 3. MATTERS FROM THE FLOOR - None 4. PUBLIC HEARING - None 5. REPORTS AND PRESENTATIONS A. Presentation of Service Award for Outgoing Commissioner Robert Bean On behalf of Council and the residents of Shorewood, Mayor Zerby presented a clock recognizing Commissioner Robert Bean for his years of service to the City, including serving as Mayor in 1995 and 1996. There was a round of applause for outgoing Commissioner Bean. B. Hennepin County Commissioner Jan Callison Commissioner Callison distributed copies of the 2018 Budget book as well as information on the workforce data. She noted that there are approximately 9,000 employees at the County and 28 percent are employees of color, which is something they have been deliberately doing to reflect the composition of the County and 62 percent are female. She reviewed the 2018 State Legislative Priorities and Platform and called the Council's attention to the Regional and State Medical Examiner's Facility that is planned for property in Minnetonka. She distributed a handout covering some statistics on opioid prevention, which is essentially a public health issue. She thanked the Council for its ongoing interest in environmental issues. The County plans to work with cities to make sure residents have the option to do organics. She reviewed some of the plans for the Mill Street area. She noted that there has been a request for a bicycle and pedestrian lane on Mill Street and there is an installation of a dynamic speed sign along Mill Street, which is one of the first they have done in the County. There will be an overlay on Mill Street, from 2" d Street to south of the county line. She thanked the City for hosting the Mayor's Meeting this Friday and thanked Councilmember Sundberg for serving on the Comprehensive Plan Task Force for the County. She noted that prior to the meeting, Mayor Zerby had asked why his property tax statement was mailed to him with Excelsior as the city as opposed to Shorewood. She stated that since it is a bill, it needs to be mailed in the format the post office requires. Mayor Zerby stated that he thinks residents are constantly confused by the difference in Shorewood and Excelsior. He suggested that Commissioner Callison go to her IT department and get that fixed. He is getting mail that is addressed to him in Shorewood, MN, so the post office will accept that. Commissioner Callison stated that the County uses a database that conforms with the post office. She suspects it is a post office issue, rather than a database issue. Planning Director Darling extended a thank you to the County on behalf of staff, the Council, and the Parks Commission for the $25,000 playground grant that will be used for the renovation of the Badger Park Playground which would start this summer. Councilmember Sundberg asked what Commissioner Callison thought would get through the Legislative session regarding the County legislative priorities. Commissioner Callison stated that from the list, they are hopeful that the medical examiners facility will pass, but admitted she is not optimistic about most of the other items listed passing. Councilmember Labadie thanked Commissioner Callison for bringing to light the opioid prevention efforts. She feels it is a very important issue that needs to be discussed openly, because it is a public health epidemic and will not be short lived. She suggested putting portions of the handout from Commission Callison onto the City website, newsletter, or a link to the handout to help citizens who may need help with addiction. C. 2017 Audit Report Mayor Zerby introduced Andy Berg from Abdo Eick & Meyers, LLP. Mr. Berg stated that the audit went well this year. He noted that there were two findings to report, but, per the management response, both have been taken care of and should be a non -issue at this time. He gave a brief overview of the 2017 Audit Report. Administrator Lerud noted that the 2017 Audit Report will be posted on the City website, so the viewing public can look at it. Sundberg moved, Zerby seconded, Accepting the 2017 Audit Report. Motion passed 31011, with Councilmember Johnson abstaining. 6. PARKS A. Commissioner Rock Report on 04 -10 -18 Parks Commission Meeting Commissioner Rock gave an overview on discussion at the April 10, 2018 Parks Commission Meeting. He stated that they discussed the landscaping plans at Badger Park. The Commission also recommended the movie Despicable Me 3 for the Movie in the Park. The Commission was very excited to receive the grant money for the Badger Park shelter and discussed more of the details for the playground equipment and dimensions of the shelter. B. Badger Park Playground Purchase Planning Director Darling explained that with the possible tariff on steel, the steel manufacturers are planning to raise their prices by 20 %, which translates into a 4% increase on the playground equipment. The Parks Commission would like to put the order in for the equipment before May 1, 2018 when the prices will be going up. She reviewed the color scheme that the Parks Commission is recommending. She noted that the playground company would have time to do the installation in July or September. Sundberg moved, Labadie seconded, Approving RESOLUTION NO. 18 -046, "A Resolution Authorizing the Purchase of the Playground Equipment for Badger Park" as presented. Motion passed 4/0. 7. PLANNING A. Commissioner Riedel Report on 04 -17 -18 Planning Commission Meeting Commissioner Riedel gave an overview of the April 17, 2018 Planning Commission Meeting. He reviewed the conditional use permit applications they took into consideration. He noted that the Planning Commission has talked about looking at the allowed 1,200 sq. ft. accessory structure size since it routinely approves larger buildings. They also plan to have a larger discussion about the number of allowed accessory structures, which currently is three. He explained the votes for the CUP application at 5550 Marsh Pointe Drive and why they are recommending denying the variance request for the setback. B. Conditional Use Permit for Accessory Building Area: Applicant: Schroeder Management, LLC Location: 27960 Smithtown Rd. Planning Director Darling explained the proposed conditional use permit and stated that staff is recommending approval. Councilmember Labadie asked if the City would be running into issues with hard cover if this is allowed. Planning Director Darling stated that this property is quite large, and it would not cause issues with hard cover. Mike Schroeder, representing Jack and Gretchen Narqual, stated he was available to answer questions, if necessary. Sundberg moved, Johnson seconded, to Approve RESOLUTION NO. 18 -039, "A Resolution Granting a Conditional Use Permit to Add Accessory Spaces Exceeding 1,200 Square Feet for Schroeder Management at 27960 Smithtown Road." Motion passed 4/0. C. Conditional Use Permits and Setback Variance: Applicant: Tea2 Architects Location: 5550 Marsh Pointe Drive Planning Director Darling explained the requests for two conditional use permits and a setback variance. Staff is recommending approval of the two conditional use permits and denial of the request for a setback variance. She noted that it was not a unanimous vote from the Planning Commission because one of the members thought it was a reasonable request and use of the property. Tom Van De Weghe, TEA2Architects appeared representing Jodi and Paul Siegle. He stated that the Siegle's intent from the very beginning was to have a nice home in Shorewood. He explained that the unique characteristics of the lot are different than any other lot in the area. He noted that the development just north of the property has setbacks that are 35 feet. He stated that if the Council looks at other corner conditions, the houses have anywhere from 24 -35 feet of setback. He stated that they were trying to make this house fit into the area and the code seems to have been written to have new houses obey the same rules as others in the area. He noted that the variance that they were asking was just 4 feet for the attached open porch. The bulk of the house is within the setback. He quoted from the Comprehensive Plan that stated the goal is to "maintain the character of the existing neighborhood ". Councilmember Sundberg asked for a description and more details of the six -car detached garage and its placement on the site. Mr. Van De Weghe distributed some images. He noted the intent is to create a garage that is in character with the house which is a stained cedar shingle structure. He stated that they have plans to landscape extensively, so it is hardly seen. He stated at the Planning Commission meeting there was a question from the Marsh Pointe community regarding the scale of the detached garage and noted there are a few different design options that could be done so it breaks the scale down. Councilmember Labadie pointed out that the homes to the north that Mr. Van De Weghe noted have closer setbacks are part of a development that the City allowed to be closer to the road to allow for preservation of more marshland in the back. That is not the same issue with this home. The homes to the west are older homes, so she thinks comparing their existing setback to a new home is like comparing apples to oranges. She stated that it looks like a beautiful home, however, she thinks it may be a matter of opinion whether a home with a six car garage fits into the neighborhood or not. Councilmember Sundberg stated that she is in the unique position of being at the Planning Commission meeting where this was discussed but also being a resident of Marsh Pointe. The feedback that she received from the residents of Marsh Pointe is that they are pleased to have this eyesore developed with something that looks this good and fits in so well. She stated that it is a problem lot with the marshland on one side and the school parking lot on the other. She stated that she didn't think the owner or developer had a lot of choice as to where the house could be placed. She stated that the Marsh Pointe folks think that this home will mark the entry into Marsh Pointe and they like how it looks. Their concerns were about the garage placement and its size. She stated that the setback variance was never an issue with any of the neighbors. She stated that she is willing to allow the setback variance because it is a reasonable accommodation for a difficult lot that has been vacant for quite some time. Councilmember Labadie stated that she agreed with Councilmember Sundberg that this is a great improvement of the eyesore of a vacant lot, but thinks the Council must respect the City code, as it is written. Councilmember Johnson noted that the Council had received a letter from the Marsh Point Homeowners Association Board that expressed concerns about the size of the garage. Councilmember Sundberg asked if the City had any other detached six car garages within the City. Planning Director Darling stated that she wasn't sure, but she has researched back over the last five years for detached structures and this application and the previous application on tonight's agenda, are the largest requests approved in the last five years. Councilmember Sundberg asked about the purpose of a variance. Planning Director Darling stated that purpose of a variance is to allow flexibility to strict interpretation of the zoning regulations where there is some practical difficulty that would limit the use of the site. Councilmember Sundberg asked if the variance rules were different for old versus new construction. Planning Director Darling stated that there can be variances granted for both new construction and existing construction. Paul Siegle, 5550 Marsh Pointe Drive, stated that he is a car guy and currently owns 6 acres in rural Carver where they have lived for 34 years and raised their four children. He stated that what is missing at his present home is a sense of community and neighborhood, which is why they bought the land in Shorewood. He stated that after driving through the area, they went back to TEA2 and asked them to redesign the front area of the house to include the welcoming front door and porch area. Councilmember Sundberg asked if Mr. Siegle was willing to minimize the size and scope of the garage with landscaping. Mr. Siegle stated that they would absolutely do what they could with landscaping. Mayor Zerby stated that he thinks it is a beautiful design and a vast improvement for the neighborhood. He stated that it is a lot better to keep the cars inside than out in the driveway or backyard that create a nuisance issue. He is fine with the planned structure and layout. Councilmember Labadie asked about the separate votes taken at the Planning Commission. She stated that it was a unanimous vote to approve the accessory structure in excess of 1,200 sq. ft. She asked if the vote was after a large amount of discussion or debate. Planning Commissioner Riedel stated that there had been extensive discussion on the first conditional use permit for the large accessory space. There was also discussion about the fact that the Planning Commission seemed to be routinely recommending approval of large accessory space areas. The discussion for this CUP criteria was that all of them were met, so there was no basis to deny the request. Planning Director Darling read aloud the CUP criteria and explained how the applicants have met all the criteria. Sundberg moved, Johnson seconded, to Approve RESOLUTION NO. 18 -040, "A Resolution Granting Two Conditional Use Permits to Allow Construction of a Home and Detached Garage for TEA2 Architects for Property Located at 5550 Marsh Pointe Drive." Motion carried 4/0. Councilmember Johnson asked Mr. Van De Weghe what the depth of the porch is from the columns to the front door. Mr. Van De Weghe stated that it was about 7 feet. hIe stated that considering the overhang and those aspects of the structure, the amount in literal violation of the 50 -foot setback line, is 3 feet 8 inches. Mayor Zerby stated that he loves front porches and does not think that four feet will have much of an impact with a 50 -foot setback. He stated that from the drawings, it appears like this house could just be shifted back a bit and the setback would not be needed. He noted that he respects the Planning Commission taking the time to look at this issue so closely. Councilmember Johnson stated that he is also conflicted and from the drawings, it does appear that the courtyard behind the house could be shifted back to allow the home to be shifted back to meet the setback requirement. Mr. Van De Weghe stated that there are design implications involved in shifting the home back a few feet. Councilmember Labadie stated that she is also struggling because it is a deviation from the code and the way the City can maintain uniformity is by following the code. Councilmember Sundberg stated that she thinks this is what a variance is all about. She stated that the Council has allowed variances for unique situations and she feels this seems reasonable. Planning Director Darling stated that there are tests and if the Council deems that this application meets them, the Council can approve the variance. Councilmember Sundberg stated that she supports allowing the setback variance. Councilmember Labadie stated that she thinks many of the variances that the Council has supported are for existing structures. Planning Director Darling stated that is generally the case, but she can think of some cases where there have been substandard lots where flexibility has been given. Councilmember Labadie asked if this lot would be considered a substandard lot. Planning Director Darling stated that it would not. Sundberg moved, Zerby seconded, to Approve RESOLUTION NO. 18-045, "A Resolution Approving a Variance for Setback from a Side Lot Abutting Marsh Pointe Drive for Property Located at 5550 Marsh Pointe Drive in the R -IA Zoning District." Mayor Zerby noted that he was sort of leading with his heart on this issue because he likes the look of the design and thinks front porches are important. He noted that the City of Excelsior had recently made some changes to their code to allow some leeway to encourage more front porch construction to help with a feeling of community. He doesn't feel a 3 -foot 8 -inch encroachment with a 50 -foot setback is a big deal. Councilmember Labadie stated that Shorewood is not the City of Excelsior and has not modified its code. She stated that granting this for new construction makes her leery, without being presented with a hardship. She does not want to set a difficult precedent for ourselves with other buildable lots in the City. Attorney Keane clarified that "hardship" is no longer the standard for variances, rather the terms "practical difficulties" are used. Councilmember Labadie asked how the code defined practical difficulties. Attorney Keane stated it is fact, circumstances, and inquiry. He stated that the uniqueness of this parcel, with its proximity to the school parking lot, the orientation longitudinally, and access off the side street rather than Smithtown Rd. can all be taken into consideration because this parcel is not a cookie cutter rectangle. Councilmember Labadie confirmed the term "practical difficulties" was taken from State statute. Planning Director Darling reviewed the tests for practical difficulties. Councilmember Sundberg stated that this issue makes her wonder if the City should be looking at the code regarding setbacks, because there may be some streets that a different setback distance may be a good idea. Councilmember Johnson stated that he thought that Planning Director Darling had stated that each variance is unique to the individual lot and does not set an overall precedent. Planning Director Darling stated that this was correct. Motion passed 4/0. 8. ENGINEERING/PUBLIC WORKS A. Accept Proposal for Professional Services — Grant Street Drainage Director Brown explained that in the summer of 2017, the property located at 5925 Grant Street sustained major water damage to the lower level of their home during a major rainfall event. The homeowner filed a claim with the League of Minnesota Cities which has been settled. He stated that as the City examined the area and this claim, it found the 100 -year event did not have any emergency overflow. He noted that the construction in this area has created sort of an artificial bowl with no emergency overflow available. He stated that staff has solicited WSB to conduct a drainage report feasibility study to look at the benefits of this improvement. The cost is $10,944 and WSB will cover approximately half of that cost and staff is recommending approval. Derek and Caroline Allmendinger, 5915 Grant Street, stated that they would like to encourage the Council to support the proposal. They presented pictures of the event that Director Brown was referring to. Ms. Allmendinger explained that on August 17, 2017 it started to rain but this time the water stayed, and the pictures show a time lapse of the night and what happened with the water in their area. Mayor Zerby asked how much rain fell that night. Mr. Allmendinger stated that he believed it was 3.4 inches in about 4 hours. Director Brown stated that many of the drains in this area are called "golf course drains" and are more intended to function as seepage drains. Ms. Allmendinger stated that she has tried to do her personal duty and clean out the areas of the drain she can access with her ShopVac to prevent a blockage that will flood the yards. Mr. Allmendinger stated that since the watermain project on Park Street, the water has not been evacuating completely from their yards as quickly as it had in the past. Richard Pierce 5905 Grant Street noted that he had also seen a significant amount of standing water in his yard that did not recede as quickly as it should. He stated that if nothing is done, it is just a matter of time when it will occur again to one of the other homes in the area. He stated that the damage sustained by their neighbor was terrible. He stated that he wanted to thank Director Brown and Engineer Fauske for the effort that they have put forth since the event last summer and their attention to detail. Labadie moved, Johnson seconded, Adopting RESOLUTION NO. 18- 041, "A Resolution to Approve a Professional Services Agreement with WSB & Associates for Professional Engineering Services for the Grant Street Drainage Feasibility Study and Authorize Preparation of the Feasibility Report, City Project 18 -04." Motion passed 4/0. B. Accept Petition for County Road 19 Speed Awareness Display Director Brown stated that staff had received a request from a resident at 23890 Elder Turn asking if the City would act jointly with the City of Excelsior for a speed awareness display in this area. He reviewed the flowchart that staff uses in considering these types of speed control requests. Sundberg moved, Labadie seconded, to Accept the Petition for a County Road 19 Speed Awareness Study. Motion passed 4/0. C. Accept Proposal for Professional Services — Chaska Road Traffic Study Director Brown gave an overview of the request by a resident to examine traffic speed and volume along Chaska Road. He stated that staff worked with WSB to bring the cost down to $2,400 to review the speed and volume in this area and is recommending approval. Johnson moved, Labadie seconded, Adopting RESOLUTION NO. 18 -042, "A Resolution to approve a Professional Services Agreement with WSB & Associates for Preparation of a Traffic Study on Chaska Road." Motion passed 4/0. 9. GENERAL/NEW BUSINESS A. New Liquor License: Waterford Liquors, LLC Clerk Thone stated that Mr. Palanisami is planning to purchase the business from the current owners operating as Team Liquors at 19905 Hwy 7, Mr. Palanisami has submitted all the application materials, fees and has successfully passed a background check and staff is recommending approval. Mr. Palanisami stated that he has owned the mall for the past 12 years. He explained that the current owner's business decreased when the wine store opened nearby. The existing employees would like to stay on, so he has decided to give running the store a try. Councilmember Sundberg asked what his plans are for the property and whether any renovations or remodeling are planned. Mr. Palanisami stated that he had been looking at the possibility of opening a little restaurant there. He stated that if he could find a nice restaurant, he would put a little money in and remodel the building. Sundberg moved, Zerby seconded, to Approve RESOLUTION No. 18 -044, "A Resolution approving Waterford Liquor Off -Sale Intoxicating Liquor License." Motion passed 4/0. B. Ashland Woods Development Administrator Lerud stated that the Ashland Woods subdivision was approved by the Council in January of 2013. The development has seven single family lots and there are presently five homes built in the development. He reviewed the approval resolution, which required the developer to record the development agreement as well as a declaration of covenants, which created a homeowner's association that would be responsible for the ongoing costs associated to maintain the on -site surface water system. He stated that the development agreement was recorded, but the declaration of covenants has not been recorded. That fact was discovered in 2015. The City notified the developer on June 26, 2015 that there was a default in the development agreement and no further building permits would be issued until the default was cured. He reviewed different efforts that have been made to resolve the issue but noted that there were not successful. Staff is requesting that parties participate in mediation to try to resolve the issue. Councilmember Johnson stated that this issue involves him personally and asked for guidance from Attorney Keane as to how he should proceed. Attorney Keane stated that his recommendation is to recuse himself from any votes on this topic because there is a conflict of interest. Mayor Zerby stated that he has been aware of this situation for quite some time and is frustrated with the process. Councilmember Johnson stated that the only way the residents found out about this was because as he was coming onto the Planning Commission, he decided the best way for him to learn about the processes in the City was to follow his own development from start to finish, which is how this issue came to light. Councilmember Sundberg stated that the City has had problems in the past with developers not following through. She asked that the Council and staff really be careful and more thorough in screening developers. She is sympathetic to the homeowners and asked about options other than mediation. Attorney Keane stated that there were options of enforcement and other remedies under the development agreement. Councilmember Sundberg asked why the City wouldn't want to pursue enforcement. Attorney Keane stated that the status quo has been intended to allow Lot owners and the developer to try to come to a mutual accommodation and there has been no harm or prejudice to the public or City by not acting up to this point. Councilmember Johnson stated that the problem for the homeowners would come when they go to sell their house. He stated that the homeowners are not a party to the development agreement. Attorney Keane suggested that Councilmember Johnson speak from the podium if he was speaking as a property owner and not a Councilmember. Councilmember Johnson left the Council desk. Attorney Keane stated that he has served the City for about 20 years and has never encountered a circumstance anywhere near this one. He noted that it was odd and there is something of a stalemate between the parties. He cannot speak for what communication has been between the developer and the home owners and stated that he was unsure if the parties are even willing to mediate. Cory Leper, stated that he developed Ashland Woods in 2013 and that there was nothing intentional with not recording the documents. He stated that he admitted collective responsibility for the error and wished no ill will on the residents. He stated that they have offered to pay and maintain these things in perpetuity and have worked to develop a maintenance proposal that was not part of the development agreement. He stated that they have been trying to take steps to remedy this situation. He apologized that they were not overly prepared for tonight's meeting because their daughter had been in the hospital over the weekend. He reiterated that they want to fix this and to take responsibility and were open to mediation. Councilmember Sundberg confirmed that Mr. Leper was the developer and asked he had conversations with the homeowners. Mr. Leper stated that they have had discussions and received notice from their attorney in 2016 that nothing was going to work out for further discussion. He stated that he would be happy to share memos and other correspondence with the Council but didn't have it with him for tonight's meeting. Councilmember Labadie asked if prior communication attempts with the homeowners had been with him directly or through his attorney. Mr. Leper stated that it had been a combination of himself and his attorney. Heather Leper gave an overview of their history as developers in the area. She noted that they personally have developed over 80 homes in the area and have not had one single complaint against them. She stated that they had previously sold the remaining two lots and ended up buying them back at a premium price to save those people from having to be involved in this issue. She stated that she thinks that action should show their goodwill towards this situation. She stated that they just want a resolution and for everybody to be happy. She reiterated that a mistake was made and that there was no ill intent in failing to record those documents. Councilmember Labadie stated that if they have developed 80 homes and 7 of them are here in this development, that accounts for almost 10% of their product. She does not understand how these lots were sold to many different families without them knowing that they were buying into a property that included a homeowner's association. In reading the staff report, the homeowners thought they were simply buying a single - family home on independent lots, which is a big difference than being part of a homeowner's association. She stated that she finds it hard to believe that if you have 80 homes under your belt, you could forget to record the documents and asked how this happened. Mr. Leper stated that they have asked those same questions of their team and their title company. He stated that he does not know where this fell through the chain between the him and the title company. Councilmember Labadie reiterated that this one document contained a huge concept that these buyers were buying into a homeowner's association. She stated that someone buying a home should be aware that they may be obligating themselves to be part of an association with all its associated agreements and dues. Administrator Lerud stated that in fairness to the developer, they did not have a lot of time to prepare for tonight's meeting and be prepared to go through the history of how it got to this point. He stated that the goal for tonight's meeting is to decide whether the Council thinks that mediation is a worthwhile way to try to resolve this issue. If the Council wanted to recommend action other than mediation, he suggested that that discussion be held at a future meeting. Councilmember Labadie stated that she did not expect to see the developer at tonight's meeting and because they are present, she would support mediation efforts, with a very short time frame attached. Mayor Zerby asked if there were any other residents who would like to speak to the Council. Jeff Schultz 26355 Alexander Lane, stated that this has been going on for a long time and they only found out about it when Patrick Johnson joined the Planning Commission. He stated that they have had multiple conversations with the developer and things get caught up when they get to the point of talking about the financial impact of the obligation that they never agreed to and was never disclosed to them. He stated that there are a series of remedies upon default that are laid out in the development agreement and he would like to see those options pursued. He is unsure if mediation will work but he is open to try, however, he doesn't want to pay for it. Patrick Johnson 26350 Alexander Lane, noted that there are two other residents present tonight and earlier tonight they met with Administrator Lerud and talked about mediation as a possibility and had agreed to that as the next step. Councilmember Sundberg asked who would pay for the mediation and what the approximate cost would be. Administrator Lerud stated that he feels the costs should be shared by the parties involved. Attorney Keane stated that a skilled mediator will charge between $300 and $400 an hour. He estimated that there will be a few hours of preparation and perhaps 6 to 8 hours of mediation. He stated the cost may be approximately $3,000 or $4,000. Councilmember Sundberg stated that she has a problem putting part of this burden on the homeowners who were not part of the problem. Ms. Leper stated that they would cover the cost of mediation. Sandberg moved, Zerby seconded, To Approve Mediation between all the relevant Parties, including the property owners, the developer, the title company, with the cost of mediation being covered 100% by the developer. Ms. Leper asked who would facilitate between the two groups. Attorney Keane stated that it looked like it would be himself along with Administrator Lerud. Ms. Leper stated that she would like a commitment from someone in the City, so they can meet the Council's deadline. Administrator Lerud stated that he and Attorney Keane would be working together, but he would be her contact with the City. Councilmember Labadie confirmed that the City would not be part of this mediation and there will just be two parties involved in the mediation. Patrick Johnson stated that there should be three parties involved in the mediation because the title company should be brought in as well. Attorney Keane stated that would be up to the developer as to whether they want to bring the title company into the room. Brett Dahlof, 23695 Alexander Lane, stated that he was the last homeowner to purchase in Ashland Woods in July of 2015. He stated that the developer must have been made aware of the issue at some point during his purchase process, because on the day of closing, after he had signed all the mortgage documents, he was presented with a document that he was essentially forced to sign regarding the association. He stated that he is happy to go to mediation, however, not until the document that he was forced to sign is removed from his title. Mr. Leper stated that the document Mr. Dahlof is referring to is something that Brad Nielson asked them to put together which was a revised maintenance agreement. He stated that this was something that the City asked them to record against the properties. He reiterated that he has copies of all the correspondence that he can share with the City. Mr. Dahlof stated that this document was not something that was approved by the City. The document Mr. Leper is referring to was composed and drafted a year or so after lie built his house. Motion passed 3 -0 -1 (Councilmember Johnson recused himself due to a conflict of interest) C. Respectful Workplace /Code of Conduct Administrator Lerud explained that in March staff had gone through some respectful workplace training and the Council thought some of those philosophies should be incorporated into the existing Council policies and procedures. Zerby moved, Sundberg seconded, to adopt the revised policy and to Adopt RESOLUTION NO. 18- 043, "A Resolution Supporting a Respectful Workplace." Motion passed 4/0. D. Community Notification System Administrator Lerud gave an overview of the current communication avenues the City uses to get information out to residents. He stated that the problem is that it requires the residents to actively seek information. Staff has found a local company called Public Alert, that has the ability for anyone on staff to send out a notification to residents. He stated that the cost is $550 and includes up to 8,000 notifications per year. He noted that the way it will work is that residents will automatically be included and can opt out if they do not want to receive notifications. Staff recommends approval. Councilmember Johnson asked if staff would need to take any training regarding the do not contact laws. Administrator Lerud stated that he believes there are exceptions if you already have an existing relationship and these are utility customers and residents of the City. Johnson moved, Sundberg seconded, Accepting the Proposal from Public Alert for a Community Notification System as presented. Motion passed 4/0. E. Building Official Position Administrator Lerud stated that Joe Pazandak has informed the City that lie would like to start looking ahead to retirement. He stated that Building Official Pazandak is very flexible in his timeline and his transition out. He stated that there was discussion among Building Official Pazandak, Planning Director Darling and himself and they all feel strongly that this position should be a staff position and not a contracted position. Administrator Lerud stated that he anticipates it may take some time to fill this position. Councilmember Sundberg stated her appreciation for Building Official Pazandak for his work but also his willingness to work with the City and give time to find a replacement. Councilmember Johnson expressed his appreciation for Building Official Pazandak because he is a real asset to homeowners as they go through that process. He suggested trying to find someone through the interview process who has been able to build some sort of system to track building permits. Administrator Lerud noted that Planning Director Darling was already working on creating that type of system. Planning Director Darling stated that there is software available that will track the permitting process and even send out the appropriate correspondence, but the cost is around $4,000. Zerby moved, Johnson seconded, Approving the Job Description for the Building Official as Submitted and Authorize Advertising for the Open Position. Motion passed 4/0. 10. STAFF AND COUNCIL REPORTS A. Administrator and Staff 1. Building Permit Data Planning Director Darling stated that there have been 12 new construction permits issues in the Minnetonka Country Club: one in 2016; five in 2017; and six year -to -date. There are still a few applications pending, but two additional permits have been issued since she submitted the report. Other Director Brown reminded residents that seasonal road weight restrictions are in place. He stated that residents have been asking when the roads will be swept. He stated that they are waiting until the road firms up a bit because the sweepers are one of the heaviest vehicles. They are continuing to fill potholes and asked that residents use SeeClickFix to report them. They are also inspecting and working on some of the drainage systems and culverts throughout the City because since winter essentially ended last week, many of the culverts are still frozen. B. Mayor and City Council Councilmember Labadie made note of next month's meetings being the second Monday and because of Memorial Day, the fourth Tuesday. She stated that the Parks Commission meeting will be changed as well and recommended residents look at the calendar on the City website for clarification of meetings dates and times. Councilmember Sundberg asked if the Council was interested in asking the Planning Commission to look at the 50 -foot setback issue being revised for different types of roadways based on discussion tonight. She asked if other cities had different setback rules for different types of roadways. Planning Director Darling stated that the city she previously worked for had a rule of a 50 -foot setback along arterial roadways and a 25 -foot setback for local roadways. Attorney Keane noted that other communities are starting to give consideration and offer flexibility to encourage construction of porches. Mayor Zerby noted that the City is hosting the Lake Minnetonka Mayor's Forum for the fourteen cities that are around the lake on Friday, April 27, 2018 at 7:30. Mayor Zerby asked if there was a weight restriction for sidewalks because he has noticed a lot of them need cleaning debris and waste off them. Director Brown stated that they like to time the cleaning of sidewalks with street sweeping because then they can sweep it into the street and have the street sweeper immediately pick it up rather than sweeping it into people's yards. 11. ADJOURN Sandie Thone, City Clerk