111202 CC WS Min
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CITY OF SHOREWOOD
CITY COUNCIL WORK SESSION
TUESDAY, NOVEMBER 12, 2002
5755 COUNTRY CLUB ROAD
COUNCIL CHAMBERS
8:00 p.m. or immediately following
Regular Council meeting
MINUTES
1. CONVENE WORK SESSION MEETING
Mayor Love called the meeting to order at 8: 17 P.M.
A.
Roll Call
Present:
Mayor Love; Councilmembers Garfunkel, Lizee, Turgeon, and Zerby; Administrator
Dawson; Associate Attorney Gump, Engineer Brown, and Finance Director Burton;
Engineer Bailey
Absent:
Planning Director Nielsen
B.
Review Agenda
Mayor Love reviewed the Agenda. Engineer Brown requested the addition of Item 2AI, Report on
"Hot" Soils.
Lizee moved, Garfunkel seconded, Adopting the Agenda as amended. Motion passed 5/0.
2. ENTERPRISE BUDGETS
Administrator Dawson explained budget drafts were ready for the City's Enterprise Funds. These funds
generated revenue for the City due to cover the costs of services provided by the City to its residents.
He explained Finance Director Burton would be reviewing each of the budgets for Council.
A. Water Operating and Debt Service Budgets
Finance Director Burton stated the Water Budget was comprised of two budgets, the Operating and
Debt Service budgets. The 2003 Water Debt Service payments totaled $267,900, and would be paid by
a transfer of dollars from the Water Operating Budget. The Water Operating budget revenues were
projected at $383,000, with expenses forecast for $822,612, resulting in a deficit of about $440,000.
Items contributing to this deficit included the debt service transfer, depreciation, and capitol
expenditures. Proposed capitol expenditures. included the Woodhaven Well Interconnection, the Badger
Well Inspection and Design, the Water Meter Radio Read project (Year 1 of 3 for this project), and
installation of eyewash and shower wells. As a result, a water rate increase would be necessary in
2003.
Councilmember Zerby questioned whether it would be advantageous to the City to pursue refinancing of
municipal bonds as a result of the low interest rates. Finance Director Burton explained this question
was being researched as part of ongoing discussions with the City's public financial advisor.
CITY COUNCIL WORK SESSION MEETING MINUTES
November 12, 2002
Page 2 of 4
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1.
Report on "Hot" Soils
Engineer Brown related a very recent high incidence of watermain and valve failures in the southeastern
part of the City. He explained "hot" soils were soils having an unusually high acidic level that often
caused accelerated loss of metal parts within the watermain system. He had talked with industry
salespeople, suppliers, as well as the City Engineers of Chanhassan and Victoria, and all noted the same
problem in the area. He stated steps were being taken to remedy this issue through cathodic protection
as watermain systems were dug up for repair. However, he was also researching other potential
methods and products to help remedy the situation.
Councilmember Turgeon expressed concern for the implications to residents for the cost of the
breakages on the watermain system. She stated she believed more residents might like to be a part of
the municipal water system than were currently being connected, and suggested asking residents for
input on this issue. Engineer Technician Bailey suggested information be shared via newsletter with
residents regarding the cost, time, and connection needed to obtain municipal water service, especially in
comparison to rehabilitating private wells.
Finance Director Burton provided a number of options for potential water rate increases to residents.
Council indicated a tiered rate implementation through 2005 would provide the most conmlon sense
approach to offset the costs of projects and potential future problems within the watermain system.
B. Sanitary Sewer Budget
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Finance Director Burton stated the City currently had about 2,800 connections to its Sanitary Sewer
System. The Sanitary Sewer Fund has historically had a substantial fund balance enabling it to provide
various interfund loans for other projects that are being repaid on schedule. However, due to increased
expenditures, various rate change proposals were being proposed. She went on to explain tlle
Metropolitan Council Environmental Services (MCES) Sewage treatment costs had increased due to tlle
year's record precipitation for the Year 2002. Additionally, there were initial costs to bringing certain
sewer services in-house to be completed by City Staff. Also, capital improvements for Lift Stations 8,
15, and 18, installation of alarm/autodialers, purchase of a generator, and Inflow & Infiltration Control
and Reduction projects were the cause of increased expenditures anticipated in 2003.
Finance Director Burton shared a comparison of local cities' sewer rates, noting there were six options
for rate changes. Council indicated a preference for a rate increase to $70 per quarter.
C. Stormwater Management Budget
The Stormwater Management Budget draft contemplated revenues and expenditures of about $70,500,
including operations and debt service payments for the Gideon Glen land acquisition. Finance Director
Burton went on to explain a rate review had not taken place since 1993, and thus, at minimum, an
inflationary increase (covering the ten-year period) was being recommended as additional stormwater
projects were assumed over the course of the next year, and exact funding dollars were not identified at
this time.
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Staff also recommended informing residents of the historical need for the proposed rate increases for the
Year 2003.
CITY COUNCIL WORK SESSION MEETING MINUTES
November 12, 2002
Page 3 of 4
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D. Recycling Budget
Finance Director Burton next reviewed the Recycling Budget draft, noting the City continued to receive
grant monies from Hennepin County Grant Funds in the amount of $23,700 tlrrough 2004. After that
time, however, funding had been cut for the grant program so future grant funding remained in question.
While the number of recycling households within the City remained stable, EZ Recycling, the City's
contracted hauler, had increased the rate charge to the City to $2.25 per household. Staff was
recommending a small increase in the Recycling fee from $1.50 per household per month, to $1.75 per
household per month to continue to cover necessary costs associated with this service.
E. Liquor Operations Budget
Finance Director Burton explained many changes had taken place in the City's Liquor Operations in the
past year. She noted the anticipated closing of the Tonka Bay Store on November 30,2002. She stated
Staff had held preliminary discussions with the owners of the Oasis property to deternune feasibility of
building a liquor store on the site. As a result, Staff had prepared an early preliminary budget for a new
store, contemplating construction and operation for the period of September through December, 2003.
The Shorewood Plaza store had been impacted by the closing of Driskill's as part of the proposed
construction of the Cub Foods, Inc. Store. While negotiations were pending regarding relocation Witllin
the mall, the 2003 budget reflected reduced profits, despite efforts to economize.
Finance Director Burton noted the Waterford Store was forecasted to show a reasonable operating
. profit for the Year 2003.
Finance Director Burton thanked Council for its efforts this evening regarding potential rate increases
for the Enterprise funds. She stated she would provide budget information to residents in the City's
December newsletter.
3. PARKS FOUNDATION
Administrator Dawson explained at the October 14, 2002, Council Meeting, Councihnember Turgeon
requested this item be discussed to determine whether continuing staff support would be needed. He
then provided background information for Council regarding the restructuring and reorganization
undertaken by the Shorewood Parks Foundation. He also noted the fundraising activities introduced by
the Parks Foundation in effort to provide funding support in the amount of $100,000 over ten years
time. He introduced Ken Dallman, and Don Kelly, Parks Foundation members, to the Council.
Councihnember Garfunkel questioned why a Park Commission member was not present at the Parks
Foundation meetings. Parks Fmmdation Boardmember Dalhnan stated the bylaws explained both a
Park Commissioner and Councihnember were expected to be present at each Parks Foundation meeting.
Discussion ensued regarding the lack of participation by Commissioners, Councilmembers, and
residents Boardmember Dalhnan stated the new bylaws demonstrated Council control over the actions
of the Parks Foundation Board, and it would be nice to have the cooperative spirit to back the actions of
the Board.
. Mayor Love stated he was willing to be the Council Liaison to the Parks Foundation Board.
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CITY COUNCIL WORK SESSION MEETING MINUTES
November 12, 2002
Page 4 of 4
Councilmember Lizee stated she was pleased the Parks Foundation had restructured and streamlined
their organizational processes with a positive agenda for fundraising.
Councilmember Turgeon expressed continued concern for the small number of Boardmembers
consistently attending meetings. She stated she believed this contributed to tlle lack of participation by
other area residents, and questioned whether the City should continue to provide Staff support when she
did not believe the Parks Foundation was committed to providing fundraising efforts for the City.
Mayor Love stated the spirit of volunteerism was what was important, and he supported the efforts of
the Parks Foundation. He also commented it appeared as if the Holiday Art and Craft Show had been
successful, and he looked forward to more years of success for the Foundation.
4. ADJOURN
Garfunkel moved, Zerby seconded, Adjourning the Work Session Meeting of November 12, 2002,
at 10:12 P.M. Motion passed 5/0.
RESPECTFULL Y SUBMITTED,
Sally Keefe,
Recording Secretary
Woody Love, Mayor