01-11-21 CC Reg Mtg MinutesCITY OF SHOREWOOD
CITY COUNCIL REGULAR MEETING
MONDAY, JANUARY 11, 2021
MINUTES
1. CONVENE CITY COUNCIL REGULAR MEETING
Mayor Labadie called the meeting to order at 7:01 P.M.
Oaths of Office
5755 COUNTRY CLUB ROAD
COUNCIL CHAMBERS
7:00 P.M.
The following individuals were sworn in and repeated their oaths of their office:
Jennifer Labadie, Mayor
Paula Callies, Councilmember
Patrick Johnson, Councilmember
A. Roll Call
Present. Mayor Labadie; Councilmembers Johnson, Siakel, and Callies; City Attorney
Keane; City Administrator Lerud; City Clerk Thone; Finance Director Rigdon;
Planning Director Darling; Director of Public Works Brown; and, City Engineer
Budde
Absent: None
B. Review Agenda
Johnson moved, Callies seconded, approving the agenda as presented. Roll Call Vote:
Ayes — all. Motion passed 4/0.
2. CONSENT AGENDA
Mayor Labadie reviewed the items on the Consent Agenda.
Johnson moved, Siakel seconded, Approving the Motions Contained on the Consent
Agenda and Adopting the Resolutions Therein.
A. City Council Regular Meeting Minutes of December 28, 2020
B. Approval of the Verified Claims List
C. Approval of Pay Equity Report Adopting RESOLUTION NO. 21-001, "A
Resolution Approving the Pay Equity Report for City of Shorewood."
D. Council Out -of -State Travel Policy Annual Review
E. Mileage Rate Reimbursement
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F. Open Book Meeting Date 2021, Adopting RESOLUTION NO. 21-002. "A
Resolution Setting the 2021 Open Book Meeting."
G. Accepting Resignation and Declaring Council Vacancy, Adopting
RESOLUTION NO. 21-003, "A Resolution Accepting Resignation and
Declaring a Vacancy."
Roll Call Vote: Ayes — all. Motion passed 4/0.
3. MATTERS FROM THE FLOOR
Todd Carlson 634 Third Avenue Excelsior noted that he is the Mayor in the City of Excelsior and
wanted to welcome Mayor Labadie, and congratulate Councilmembers Callies and Johnson on
their recent elections. He stated that he looks forward to working with them and serving with
Mayor Labadie on the South Lake Minnetonka Police Department Coordinating Committee as
well as a few other subcommittees.
Greq Larson, 25535 Orchard Circle, asked about the status of the litigation in the City that was
recently reported in local media and was appealed up to the Supreme Court.
Mayor Labadie stated that the Supreme Court of Minnesota has ruled on that matter and asked
City Attorney Keane to give an update.
City Attorney Keane stated that on December 30, 2020, the Supreme Court ruled on an appeal
regarding the enforcement of the placement of an illegal dock on Lake Minnetonka. He explained
that the City prevailed which reversed the decision of the Lower Court of Appeals and has been
remanded that to District Court for further proceedings and noted that the Council will decide at a
future date how to proceed.
Mr. Larson asked how much the litigation has cost the City thus far. City Administrator Lerud
stated that he believes it is a little bit more than $52,000. He noted that he does not have the
exact number but can get that information for Mr. Larson.
Mr. Larson stated that his understanding is that the basis of the legal action was because the
ordinance was ambiguous or poorly written and open to interpretation. He asked who in the City
was responsible for writing and proofing of the ordinances.
Mayor Labadie explained that some of the ordinances on record have not been reviewed for many
years. She stated that the City has been engaged in the process of reviewing all the ordinances
and bringing them all up to date.
Planning Director Darling stated that the issue in question for this particular enforcement is
whether or not you can have an accessory use without a principal use. She stated that this item
is fairly clear in the ordinance, but it has been clarified even more to make sure that it is very clear.
She stated that there was also some confusion over the dock rules and those have already been
clarified along with the definition of dock itself. She noted that there should be no more confusion
moving forward.
Mr. Larson stated that if the City has all kinds of outdated ordinances and are spending tens of
thousands of dollars as a City to enforce them, he feels it should be a top priority to clean them
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up so that money does not have to be spent on litigation. Planning Director Darling stated that
she agreed and explained that the City is working on this. She stated the City just completed a
substantial amendment to the Zoning Ordinance that was approved in December and are moving
on to the next sections of code in 2021.
Councilmember Siakel stated that there have been pieces of information about this whole issue
which have been unfortunate. She stated that it goes back to when the applicants looked at
purchasing that piece of property and from day one, the City has always said there is no dwelling,
so there is no dock. She reiterated that from the very beginning, these residents were told in a
Council meeting that because there is no principal residence, a dock was not permitted. She
stated that review of the City ordinances has been ongoing for years and the City is not just
beginning this process. She stated as Mayor Labadie indicated, things change and when things
happen the City wants to make sure the ordinances are as clear as possible so there is not any
misinterpretation. She stated that the City prevailed because it did the right thing from day one.
Mr. Larson stated that the City may have done the right thing, but it spent over $50,000 to work
through an ordinance, which if had been clear at the beginning, would not have resulted in
spending this amount of money on legal costs. He stated that he feels that it makes sense for it
to be a high priority of the City and it should not necessarily be the Planning Director that is in
charge. He stated that he feels someone from the legal side should be watching these things so
they are not poorly written and open to interpretation.
Councilmember Siakel stated that she believes the Planning Commission has been very proactive
in updating the City's codes and ordinances. She stated that this is a duty that does not really
have a beginning and an end because there are constant updates that need to be made.
Councilmember Callies stated that this is Matters from the Floor and this should not turn into an
open debate. She stated that she understands Mr. Larson's concern and feels it has been clear
that the City is reviewing the ordinances. There is no action on this item and suggested that the
Council move on.
Mayor Labadie noted that the City has two openings on the Planning Commission and the City is
currently accepting applications. She explained that the Planning Commission is an advisory
board that reviews codes and encouraged residents to apply.
4. PUBLIC HEARING
5. REPORTS AND PRESENTATIONS
6. PARKS
7. PLANNING
8. ENGINEERING/PUBLIC WORKS
9. GENERAL/NEW BUSINESS
A. Council Vacancy
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City Administrator Lerud explained that earlier this evening, the Council accepted the resignation
of Mayor Labadie's Councilmember position which creates a vacancy for her term that will end on
December 31, 2022. He noted that there is great discretion on how the Council can choose to fill
Council vacancies. He reviewed the basic criteria for applicants to be considered and options for
filling the vacancies.
Mayor Labadie asked for Council thoughts on filling this vacancy.
Councilmember Siakel asked how the City can let residents know about this vacancy so it is
broadly known and can apply. City Administrator Lerud stated that they will advertise the opening
as they would for any job opening, so it will be in the newspapers, via the website and would also
be pushed out on social media platforms.
Mayor Labadie suggested that it be worded as a Letter of Interest rather than an application
because there is no actual application form for this purpose. She stated that any resident
interested only needs to write a letter expressing their interest in filling this position.
Councilmember Johnson asked what the Council would do if there are a considerable number of
applications. He asked if it was feasible to say that they will interview every single person who
expresses interest.
Councilmember Callies stated that one way to handle this would be to have a smaller group of
the Council, such as a subcommittee like the Personnel Committee, review the letters, winnow
the candidates down, and make a recommendation to the Council as to which of those
applications should be interviewed by the full Council. She stated that she would suggest that
they ask people to include their relevant experience or background within their letter of interest.
She agreed that she believes it will be too cumbersome for the Council, as a whole, to interview
everyone if there are a number of applicants.
Councilmember Siakel stated that she agrees that it would make sense to have the Personnel
Committee review the candidates and make recommendations to the full Council. She suggested
that the letters of interest be due by February 1, 2021 with the goal of filling the open Council
position sometime within the first quarter.
The Council discussed the time frame for advertising, the scheduling of the subcommittee
meetings, and the interview process.
Mayor Labadie noted that the City had received numerous applications for the open positions on
the Commissions and she would recommend that the City hold off on selecting Commissioners
until after the Council position has been seated on the Council. Councilmember Siakel stated
that she does not see a problem just moving forward with the process and does not feel that the
City needs to fill the Council position before the others.
Councilmember Johnson agreed and noted that he is worried about that many vacancies for that
long of a period of time. Planning Director Darling stated that there are not actually current
vacancies, but there are four terms that are expiring. She stated that the Council has requested,
in the past, that at the end of each term that each applicant reapply for their position and have a
conversation with the Council along with any other people who are interested in the position. She
explained that the terms expire at the end of February.
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City Administrator Lerud stated that it is likely that the interviews for the Commissions would be
done at a work session before the meeting on February 8, 2021, could be appointed at the second
meeting in February, and be ready to go on March 1, 2021. He stated that the Council has given
him sufficient direction on how they would like to proceed.
B. Annual Appointments and Designations for 2021
The Council made the following choices for appointments:
Acting Mayor — Councilmember Johnson
Council Rep/Park Commission Liaison
January — June 2021: Councilmember Siakel
July — December 2021: Newly Appointed Councilmember
Council Rep/Planning Commission Liaison
January — June 2021: Councilmember Callies
July — December 2021: Councilmember Johnson
Council Liaison to SCEC — Mayor Labadie
Metro Cities and League of MN Cities (AAM and LMC) — Councilmember Callies
Alternate AAM and LMC — City Administrator Lerud
Lake Minnetonka Communications Commission (LMCC) — Mayor Labadie
Alternate LMCC — Councilmember Johnson
Minnetonka Family Collaborative Council — Removed and will be re-evaluated, if necessary
South Lake Minnetonka Police Department Coordinating Committee (SLMPD) — Mayor Labadie
Alternate SLMPD CC - Councilmember Siakel
Excelsior Fire District Board Member — Councilmember Johnson
Alternate EFD Board Member — Councilmember Callies
Personnel Committee — Councilmember Callies and Councilmember Siakel
Weed Inspector— Mayor Labadie
Co -Assistant Weed Inspectors — Greg Fasching and Chris Heitz
Electronic Funds Transfer Authority — Joe Rigdon, Michelle Nguyen, City Administrator Lerud
City Attorney — Timothy J. Keane, Kutak Rock LLP — With current contract to be reviewed, details
about when it was initiated, past billing statements, and revenue generated to be reviewed at the
next Council meeting
City Prosecutor — Ken Potts — With current contract to be reviewed, details about when it was
initiated, past billing statements, as well as revenue generated to be reviewed at the next Council
meeting
LMCC Representative — To be filled at a future date when interviews are conducted
MCE Representative — Tad Shaw
Official Depositories — Alerus Bank, 4M Fund and other depositories as necessary
Official Newspaper — Sun Sailor and Laker Pioneer News as applicable
Johnson moved, Siakel seconded, Adopting RESOLUTION NO. 21-004, "A Resolution
Designating 2021 Annual Appointments to Certain Offices and Position Within the City of
Shorewood." Roll Call Vote: Ayes — all. Motion passed 4/0.
10. STAFF AND COUNCIL REPORTS
A. Administrator and Staff
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JANUARY 11, 2021
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1. Fourth Quarter 2020 Investments Report
Finance Director Rigdon gave a brief overview of the Fourth Quarter 2020 Investment Report. He
reminded the Council that the primary objectives in order of priority are safety, liquidity, and yield.
He stated that the City was in compliance with all the diversity requirements as of December 31,
2020. He reviewed the current investments, liquidity and weighted average.
2. Comp Plan Amendment Update
Planning Director Darling stated that the City of Minnetrista is looking at a possible Comp Plan
amendment on Enchanted Island for the parcel of property currently owned by the Masonic Home.
She stated that they have given formal notice of their Comp Plan amendment plans. She
explained that they are proposing a development with about one unit per acre, which is half as
much as the City of Shorewood would allow on Enchanted Island so the impacts of the
amendment seem relatively small. She stated that if the Council has no objections, she would
like to return the comment to the City of Minnetrista that the City does not find this particular level
of density would have an impact on the City.
There was Consensus of the Council for Planning Director Darling to give feedback to the City of
Minnetrista regarding the proposed Comp Plan amendment.
Other
Public Works Director Brown stated there has been great interest expressed in outdoor skating
which has been problematic due to the warm temperatures. He explained that they have
attempted to make ice by flooding in the morning, but the warm temperatures have made that
difficult, but noted that Manor Park is currently open for skating. He stated that they will keep the
website updated as conditions change.
Mayor Labadie thanked Public Works Director Brown and Communications Coordinator Moore
for making sure these types of updates are put onto the City website. Brown noted that there is
ice skating on Manor Pond.
Planning Director Darling noted that there is a Joint Park/Planning Commission meeting on
January 12, 2021 to continue their discussion on fire lanes #1, #3, #4, #5, and #6. She noted
that this meeting had been posted in case any Councilmembers would also like to be part of the
discussion.
Councilmember Siakel stated that in her opinion, the discussion of the fire lane issue has gotten
off track and is spinning out of control. Planning Director Darling stated that she will provide some
direction to the Joint Park/Planning Commission to attempt to narrow their focus down to its
original goal. Mayor Labadie asked who would be leading the Joint Park/Planning Commission
meeting. Planning Director Darling stated that there is not an official person designated to lead
the meeting. Mayor Labadie asked that one of the Chairs steps into more of a leadership role in
order to help the meeting run more smoothly and keep things on track.
B. Mayor and City Council
Councilmember Siakel asked if the City was doing anything or taking any extra security
precautions related to the current craziness going on in the country.
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JANUARY 11, 2021
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City Administrator Lerud noted that City Hall is closed except by appointment which will continue
through at least January 22, 2021.
11. CLOSED SESSION
Mayor Labadie explained that the Council will now enter a closed session pursuant to Minnesota
Statute 13D.05 Subdivision 3(b), attorney -client privilege, for the purpose of discussing legal
considerations relating to ongoing litigation regarding the enforcement of the City's zoning
regulations for property located at 5450 Howard's Point Road.
Johnson moved, Callies seconded, moving the meeting into a Closed Session at 8:46 P.M.
Roll Call Vote: Ayes — all. Motion passed 4/0.
Mayor Labadie said a motion was passed during the close session to enter back into open
session. The Council entered back in open session at 9:41 P.M.
12. ADJOURN
Johnson moved, Siakel seconded, Adjourning the City Council Regular Meeting of January
11, 2021, at 9:42 P.M. Roll Call Vote: Ayes — all. Motion passed 4/0.
ATTEST: } �r'
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J nnifer tabadie, Mayor
Sandie Thone, City Clerk