06-14-21 CC WS Agenda Packet
CITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD
CITY COUNCIL WORK SESSION COUNCIL CHAMBERS
MONDAY, JUNE 14, 2021 6:00 P.M.
Due to the Centers for Disease Control's recommendation limiting the number of people
present at a meeting, and pursuant to MN Statute §13D.02, the Shorewood City Council
meetings will be held by electronic means. For those wishing to listen live to the meeting,
please go to ci.shorewood.mn.us/current_meeting for the meeting link. Contact the city at
952.960.7900 during regular business hours with questions.
AGENDA
1. CONVENE CITY COUNCIL WORK SESSION
A. Roll Call
Mayor Labadie _____
Siakel _____
Johnson _____
Callies _____
Gorham _____
B. Review and Adopt Agenda
ATTACHMENTS
2. EXCELSIOR SEWER CHARGES City Administrator Memo
3. ATTORNEY PROPOSALS City Administrator Memo
4. ADJOURN
City of Shorewood Council Meeting Item
2
Title/Subject: Shorewood/Excelsior Sewer Agreement
Meeting Date: June 14, 2021
MEETING
Prepared By: Greg Lerud, City Administrator
TYPE
WORK
Reviewed By: Joe Rigdon, Finance Director; Larry Brown, Director of
SESSION
Public Works; Tim Keane, City Attorney
Attachments: October 13, 2020, City Council Memo with attachments
Background: At the October 13, 2020, work session, staff presented information to the
Council about a sewer agreement with the city of Excelsior. Then at the November 9,
2020, City Council meeting, the council cancelled the 1991 Joint Use Sanitary Sewer
Service Rental Agreement Between the City of Excelsior and the City of Shorewood and
directed staff and two council members to work on an agreement with their Excelsior
counterparts.
The October 13, 2020 staff memo and attachments provide good background
information about how we have arrived at this point, so I will not go into any detail about
that but encourage you to review that memo and attachments that are attached to this
memo.
There have been three meetings held to discuss a new agreement, as well as
reimbursement to Shorewood for past payments on service not provided by Excelsior.
We believed that progress was being made toward a new agreement, when on April 5,
2021, Excelsior sent the 2020 invoice that was more than three times greater than any
past invoice, basing that on their new interpretation of the 1991 agreement. (Staff
would like to point out that we believe even the original amount was in excess of actual
costs, let alone three times the amount.) At that point, the two Shorewood council
representatives determined that direction from the entire council is needed to determine
next steps.
The Met Council will be doing their projects in Excelsior and Shorewood this year, and
that should reduce the amount of “unmetered” sewer connections, meaning readings
will be actual, and not estimated. Indeed, when the Met Council completes their work at
the County Road 9 lift station, only the four Shorewood homes at the end of Lafayette
will be conveying sewage. Since they have water meters, we have proposed that their
sewer billing be done just as Excelsior residents are billed.
Mission Statement: The City of Shorewood is committed to providing residents quality public
services, a healthy environment, a variety of attractive amenities, a sustainable tax base, and
sound financial management through effective, efficient, and visionary leadership. Page 1
Staff has proposed a reimbursement amount due Shorewood of $229,273, which
reflects our determination of the overpayment amount from 2005 thru 2020.
(Shorewood sent a check to Excelsior in the amount of the 2019 payment to settle the
2020 billing amount, and the overpayment for 2020 in the same amount as 2019 has
been added to this total.) The $229,273 would be a credit, which would be drawn down
by whatever the future agreement formula is. Staff proposed two different methods to
calculate what Shorewood is flowing to Excelsior:
1. Using water meter readings from Shorewood homes using Excelsior sewer mains to develop an
average usage amount per connection, and then multiplying that average over the unmetered Shorewood
homes that flow to Excelsior. We would then arrive at a total usage that the Excelsior usage rate would
be charged against.
2. Installing flow meters in manholes in Shorewood and using those readings to calculate what is flowing
into Excelsior. We believe there are two, but there may be one or two additional connections.
Excelsior responded with the following proposal:
1. Shorewood will pay for and install sewer meters in mutually agreed upon locations.
2. Excelsior will own and maintain the sewer meters.
3. A third-party consultant will be hired to complete a comprehensive review of the city sewer rates
for residents and nonresidents.
4. Excelsior will waive the 2020 invoice charge of $169,850.04 in exchange for Shorewood waiving
the reimbursement request for past over payments.
5. Proposal is conditional on entering into a water agreement.
Shorewood had not responded to this latest proposal when the 2020 sewer service
invoice was received.
While there is sentiment for meters to be installed on Shorewood mains as a solution to
calculate future charges, this new interpretation of the formula is not supported by the
language of the agreement. It is for that reason staff cannot recommend accepting the
latest proposal from Excelsior.
Financial or Budget Considerations: As previously stated, staff believes that
Shorewood has been significantly overcharged (we believe not intentionally) in past
sewer conveyance billings from Excelsior.
Options: To be presented and discussed at the meeting.
Next Steps and Timeline: Staff will implement the direction provided by the council.
City of Shorewood Council Meeting Item
3
Title/Subject: Attorney Proposals
Meeting Date: June 14, 2021
MEETING
Prepared By: Greg Lerud, City Administrator
TYPE
WORK
SESSION
Attachments:
Background: Proposals to provide criminal and civil legal services to the city were due
on May 28. The city received five proposals for criminal services, and five for civil
services. Both current attorneys submitted a proposal.
The item is on the work session to discuss the process for review.
Mission Statement: The City of Shorewood is committed to providing residents quality public
services, a healthy environment, a variety of attractive amenities, a sustainable tax base, and
sound financial management through effective, efficient, and visionary leadership. Page 1