05-09-22 CC Reg Mtg MinutesCITY OF SHOREWOOD
CITY COUNCIL REGULAR MEETING
MONDAY, MAY 9, 2022
MINUTES
1. CONVENE CITY COUNCIL REGULAR MEETING
Mayor Labadie called the meeting to order at 7:13 P.M.
5755 COUNTRY CLUB ROAD
COUNCIL CHAMBERS
7:00 P.M.
PLEDGE OF ALLEGIANCE:
A. Roll Call
Present. Mayor Labadie; Councilmembers Johnson, Gorham, and Callies; City Attorney
Shepherd; Interim City Administrator Shukle; City Clerk/HR Director Thone;
Finance Director Rigdon; Planning Director Darling; Director of Public Works
Brown; and, City Engineer Budde
Absent: Councilmember Siakel
B. Review Agenda
Mayor Labadie asked that item 2.D. be removed and item 2.G. moved to New Business.
Johnson moved, Gorham seconded, approving the agenda, as revised. All in favor, motion
passed.
2. CONSENT AGENDA
Mayor Labadie reviewed the items on the Consent Agenda.
Johnson moved, Callies seconded, Approving the Motions Contained on the Consent
Agenda and Adopting the Resolutions Therein.
A. City Council Work Session Meeting Minutes of April 25, 2022
B. City Council Regular Meeting Minutes of April 25, 2022
C. Approval of the Verified Claims List
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E. Approval of Amendment to Excelsior Woods Development Agreement
Location: 20325 Excelsior Boulevard, Applicant: Red Grant Construction.
Adopting RESOLUTION NO. 22-044, "A Resolution Approving an
Amendment to the Development Agreement for Excelsior Woods Located at
20325 Excelsior Boulevard."
CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES
MAY 9, 2022
Page 2 of 8
F. Approval of Extension of Approvals for Car Wash Rehab — Location: 24245
Smithtown Road, Applicant: Reprise Design, Adopting RESOLUTION NO.
22-045, "A Resolution Approving an Extension for a Conditional Use Permit
Variance and Site Plan Amendment Approval for Property at 24245
Smithtown Road."
G. APPFeve GGRtFart with InteFiM City AdminiStFato — Moved to New Business
H. Approval Advertise for Public Works Lead Supervisor
I. Approve Revised Right of Entry Agreement for May Lake Outlet, City Project
19-09, Approving RESOLUTION NO. 22-046, "A Resolution Approving a
Revised Agreement for the Mary Lake Outlet Project, City Project 19-09."
All in favor, motion passed.
3. MATTERS FROM THE FLOOR
Joe Lugowksi, 24710 Glen Road, asked why the streets have not yet been swept because there
is a lot of sand on the roadways. He expressed his concerns about the condition on various
roadways, including Galpin Lake Road, with sand, debris, and pot holes.
Public Works Director Brown stated that as he had reported to the Council at the last meeting,
that Public Works had begun sweeping, but the sweeper had a massive mechanical failure. He
stated that the City immediately had it shipped to McQueen Equipment who is working to get parts
and get it put it back together. He stated that the City tried renting a sweeper while it awaits the
return of this one, but they have not been able to find one so as soon as they get it back, they will
be out finishing up the streets.
City Engineer Budde noted that Galpin Lake Road is one of the poorest rated roadways in the
City. He explained that it is slated for a mill and overlay tentatively in 2022 but noted that the City
is going for State bond funding to try to get additional funds in order to be able to add a sidewalk.
He stated that if this is successful, the road will then become reconstructed and will be a more
robust project which will delay the project. He stated that even if the City does not get State
funding it is possible this project will be delayed and not get completed this year.
Public Works Director Brown stated that there are a number of roadways, including Galpin Lake
Road, that they were planning on patching on a temporary basis this week, however the rains
have delayed those plans a bit. He stated that the official hot patch season has not started yet,
but they do have a temporary cold mix that they have been working with.
Alan Yelsey, 26335 Peach Circle, expressed his concerns regarding the Council choosing to
move forward without accurate information and communication on the agenda item related to the
campaign and non-commercial speech signs. He cited items that he felt were errors or flaws that
had been included in the packet related to this item and explained that he felt moving forward with
this item would be unconstitutional.
4. PUBLIC HEARING
5. REPORTS AND PRESENTATIONS
CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES
MAY 9, 2022
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A. Photo Contest
City Clerk/HR Director Thone gave an overview of the Ninth Bi-Annual Photo Contest winners.
She reviewed the winning photos from: Fall Delights — Fishing on Christmas Lake submitted by
Bob Wallace; Winter Wonder — Sunset, submitted by Catherine Turner; People, Pets, and Food
— Ice Cream, submitted by Louise Tvedt; and Wildlife — Natural Camouflage, submitted by Al
Whitaker. Thone thanked all participants for submitting the beautiful photos that will adorn walls
at City Hall, the Community Center, and be used in the newsletter and on the website.
6. PARKS
7. PLANNING
A. Zoning Text Amendment - Campaign and Non -Commercial Speech Signs
Planning Director Darling explained the proposal, initiated by the City, for a small, targeted
amendment to clarify one type of signage allowed under the current ordinance. She stated that
the Planning Commission held a public hearing at their May 3, 2022 meeting where one person
spoke. She noted that staff also received a number of letters prior to the meeting that have been
included in the meeting packet. She explained that one letter was resent today with a new
paragraph added that has been distributed to the Council. She explained that one of the primary
concerns expressed in the letters which are that people will still have the right to put a sign in their
yard with their non-commercial message. She stated that staff feels that this right will be more
clearly permitted with these amendments than without them. She reviewed the two courses of
action available to staff after they have investigated and found a violation. She explained that if
these amendments are approved, the City will send out information to each candidate that files
for election and will include an article in The Shore Report so residents will also have this
information. The Planning Commission voted unanimously to recommend approval of the
proposed amendments. She stated that staff feels it is clear that a full review of the sign
regulations will need to be completed sooner than they had originally identified in their priority list.
Mayor Labadie asked City Attorney Shepherd to address some of the issues that have been
raised including the recent court cases surrounding this issue.
City Attorney Shepherd noted that these are discrete ordinance amendments related to the
campaign season and to make sure that the ordinance is consistent with State statute. He stated
that the City is planning to take a significant look at the rest of the code to ensure that it is all in
line with case law in Minnesota, as well as federal law. He noted that there had been a mention
from a resident about a recent Minnesota Court of Appeals case with the City of Buffalo. He
stated that case was about the City of Buffalo enforcing their sign code and applying it to a Trump
flag that was flying from a commercial vehicle. He stated that they will take a look at that case
before enforcing the code and reiterated that they are planning to look at the code holistically to
ensure that when it is looked at, as a whole, that it works. He highlighted the proposed addition
of the substitution clause and its intended design to make sure that anywhere that commercial
speech is allowed, non-commercial speech can be substituted.
Councilmember Gorham stated that he believes there is some confusion that the substitution
clause is somehow limited to election season and asked if it was limited to that narrow timeframe..
CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES
MAY 9, 2022
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City Attorney Shepherd stated that the substitution clause applies to the ordinance, as a whole
and does not just apply to election signs.
Mayor Labadie stated that she also thinks there is some confusion regarding setback from the
street. She noted that the proposed language would actually allow signs to be closer than the
current language allows.
Planning Director Darling stated that this was correct and gave an overview of the current sign
code setback requirements. She noted that this applies to non-commercial speech signs that are
installed during the election period.
City Attorney Shepherd stated that he believed these proposed changes will allow the City to be
`good to go' for campaign season, but reiterated that there is some additional work to be done on
other sections of the code following recent decisions, some of which have been cited by residents.
He stated that the substitution clause is there to serve as a stop gap measure to ensure that non-
commercial speech of all types can be substituted for other types of commercial and non-
commercial speech.
Councilmember Callies stated that she thinks it is important to address the temporary non-
commercial speech signs because the election season is coming up so she feels it is appropriate
that the Council is handling this portion now and then will continue on the road to perfection with
the remainder of the sign ordinance.
Callies moved, Gorham seconded, Adopting ORDINANCE 588 " An Ordinance Approving
an Amendment to Shorewood City Code Chapter 1201 (Zoning Regulations) Related to
Signs." All in favor, motion passed.
Callies moved, Johnson seconded, Adopting RESOLUTION NO. 22-047, "A Resolution
Approving the Publication of Ordinance 588 Regarding City Code Ordinance Amendments
Related to Campaign and Non -Commercial Speech Signs." All in favor, motion passed.
8. ENGINEERING/PUBLIC WORKS
A. Accept Bids and Award Contract for the Smithtown Pond/Shorewood Oaks
Drainage Project, City Projects 20-07, 20-04
City Engineer Budde stated that at the March 14, 2022 Council meeting, staff had presented plans
and specifications for the Smithtown Pond and Shorewood Oaks project and Council had
authorized to advertise and opens bids. He noted that seven bids were opened on April 26, 2022
with the low bid from Meyer Contracting out of Maple Grove. He explained that with this bid, the
Shorewood Oaks portion of the project would be completed by September 1, 2022, the larger
ponding work would be completed March 1, 2023, and the trail connection by July 1, 2023. Staff
recommends awarding the contract to Meyer Contracting.
Councilmember Gorham commended City Engineer Budde for his work on this project.
Johnson moved, Gorham seconded, Adopting RESOLUTION NO. 22-048, "A Resolution
Accepting Bids and Awarding Contract for the Smithtown Pond/Shorewood Oaks Drainage
Project. City Projects 20-07 and 20-04." All in favor, motion passed.
CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES
MAY 9, 2022
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B. Strawberry Lane Final Design Direction, City Project 19-05
City Engineer Budde explained that in February of 2022, the Council and staff had a number of
discussions about the Strawberry Lane project because staff was seeking final design direction.
He stated that Council had directed staff to attempt to negotiate with property owners regarding
necessary easements in order to shift the roadway. He stated that he has a signed Memo of
Understanding with one of the property owners for an easement. He stated that he has attempted
to contact the other property owner in various ways but has not been able to make contact with
the property owner. He noted that this property would require an easement regardless of which
scenario the Council approves. He explained that staff is recommending that they continue to
pursue the western alignment which pushes the roadway closer to the west and was also the
preferred alignment by many of the residents and continue to attempt negotiations with the
property owner at 26420 West 62"d Street. He gave an overview of the alternate alignment and
what easements were necessary with both scenarios.
Councilmember Johnson noted the property that he has able to obtain an MOU on was listed as
6170 in the packet and 6270 within the resolution.
Johnson moved, Gorham seconded, Adopting RESOLUTION NO. 22-049, "A Resolution
Providing the Final Design Direction for Strawberry Lane to Include the Western Alignment
with the correction to the address listed to 6170 Strawberry Lane." All in favor, motion
passed.
9. GENERAL/NEW BUSINESS
A. Approve City Administrator Search Firm Proposal
City Clerk/HR Director Thone explained that the City had solicited Requests for Proposal for an
executive search firm to assist in finding a new City Administrator following the resignation of Greg
Lerud. The City received two proposals from David Drown and Associates and Baker Tilly who
the Council interviewed at their Work Session prior to this meeting.
Mayor Labadie gave an overview of the discussion points from the Work Session.
Councilmember Callies stated that based on their proposals, she would be more in support of
Baker Tilly.
Councilmember Gorham stated that he felt that Baker Tilly was communication focused and
explained that he was leaning towards supporting their proposal.
Councilmember Johnson stated that he was also on board with Baker Tilly.
Mayor Labadie agreed that she felt that Baker Tilly stood out based on their proposal.
Johnson moved, Labadie seconded, Adopting RESOLUTION NO. 22-050, "A Resolution
Authorizing Execution of an Executive Search Firm Agreement to Assist in Hiring a City
Administrator for Baker Tilly" and Authorize the City Attorney to prepare a contract
consistent with the terms outlined by the firm in their proposal. All in favor, motion passed.
B. Approve Contract with Interim City Administrator (formerly Item 2.G.)
CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES
MAY 9, 2022
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Councilmember Callies stated that she wanted to reiterate that she had both a professional and
personal relationship with Shirley Schulte, one of the candidates for the Interim City Administrator,
so she would abstain from voting on this item.
Councilmember Johnson stated that it has come to his attention that he had an unknown
connection to the Interim City Administrator. He stated that he learned on the way to tonight's
meeting that Mr. Shukle's daughter is his daughter's voice teacher. He asked City Attorney
Shepherd if that unknown connection presented any complications.
City Attorney Shepherd stated that she did not see that situation as creating a conflict of interest
and noted that there are no financial implications that go along with this decision.
Councilmember Johnson stated that he just wanted to make sure that he had full transparency in
this situation.
Gorham moved, Labadie seconded, to Approve the Contract with Interim City
Administrator Shukle. Motion passed 3-0-1 (Callies abstained)
10. STAFF AND COUNCIL REPORTS
A. Administrator and Staff
1. First Quarter 2022 General Fund Budget Report
Finance Director Rigdon gave a brief overview of the first quarter general fund budget.
Councilmember Gorham asked if he was correct that the budget was a forecast and that Finance
Director Rigdon was being fairly conservative with his forecasting.
Finance Director Rigdon agreed and noted that there are also some `seasonalities' included
because it can depend on what is going on during certain times of the year. He stated that the
City does budget conservatively and explained that the City has generally made it under budget
for the past several years.
Public Works Director Brown gave examples of `seasonalities' in his department such as the
expense of using de-icing chemicals and also when they are doing roadway patching.
Councilmember Gorham asked how staff forecasts for miscellaneous.
Finance Director Rigdon stated that the biggest component under miscellaneous is antennae rent,
which is easy to predict because there are contracts in place with those entities.
Councilmember Johnson commended Finance Director Rigdon for presenting this information in
an easy, digestible format.
Gorham moved, Johnson seconded, to Accept the First Quarter 2022 General Fund
Budget Report. All in favor, motion passed.
2. First Quarter 2022 Investments Report
CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES
MAY 9, 2022
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Finance Director Rigdon explained that the investments report is mandated by policy that looks
at what the City is invested in, how they are tracking, and what it looks like going forward. He
reviewed the general objectives and noted that safety, liquidity and yield are the most important
factors. He gave a brief overview of the first quarter 2022 investment report.
Councilmember Callies asked who manages the City's investments.
Finance Director Rigdon stated that he is managing the investments because there are so few,
so it has not been difficult for him.
Gorham moved, Labadie seconded, to Accept the First Quarter 2022 Investments Report.
Motion passed 3-0-1 (Johnson abstained).
Other
Public Works Director Brown stated that the roadway closure on Eureka Road North for the
connection of Walnut Grove utilities will need to be extended for a day because the rain has
caused some delays. He stated that Public Works is planning to flush watermains on May 16,
2022 and will begin on the west side of the City. He noted that the Consumer Confidence Report
issued by the Minnesota Department of Health has come out and the results will be communicated
to residents via the City newsletter.
Councilmember Gorham asked if there was any new information on the Badger Park vandals.
Public Works Director Brown stated that South Lake Minnetonka Police have gotten involved and
there is a camera in the area. He stated that the restrooms have been re -opened.
Mayor Labadie asked that staff inform the SLPMD, EFD, and First Student Transportation that
the closure on Eureka Road North has been extended. She stated that she can personally let
Tonka United Soccer know about the road closure.
City Engineer Budde noted that the Grant Street drainage project will begin in about two weeks
and should be wrapped up by mid -summer.
Planning Director Darling updated the Council on an extension for compliance on a property on
Hillendale. She stated that there has been significant improvement of the site and many of the
largest contributions to code violations have been removed.
Interim City Administrator Shukle stated that he is very happy to be with the City and is looking
forward to working with the Council in his role as Interim City Administrator.
B. Mayor and City Council
Councilmember Gorham stated that he attended Burgers and Bingo last weekend which is
always a fun event. He stated that in speaking with the volunteers, it was noted that the Fourth
of July is right around the corner which got him to thinking that he has not heard anything about
donations or fireworks. He stated that there was discussion last year about revising how funds
are committed to fireworks and asked if there had been any additional discussion on that topic.
CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES
MAY 9, 2022
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Mayor Labadie stated that the Excelsior Chamber of Commerce typically sponsors the fireworks
and seeks donations from outside agencies, including some of the cities in the area. She noted
that the Chamber is under new leadership, with Tiffany King as their Executive Director. She
explained that Ms. King is planning to come to the next Council meeting to introduce herself and
share details about the direction the Chamber will be going. She noted that it is likely that Ms.
King will come to another meeting to seek a donation from the City for the fireworks. She stated
that City Attorney Shepherd had drafted a memo relating to donations for this type of event and
the Council will thoroughly review of that information prior to this request.
Councilmember Johnson gave an update on activities at the Excelsior Fire District. He stated
that the Board has authorized the purchase of a new fire boat and explained that the Fire Relief
Association is contributing a significant amount of money towards the purchase of the boat, but
there will also be fundraising for the fire boat and encouraged residents to either contact him and
the Fire Department if they were interested in making a donation.
Mayor Labadie stated that at the last Coordinating Committee meeting for the SLMPD, they voted
to approve the membership in the fencing consortium. She gave an overview of what is involved
and the benefits of being in the fencing consortium.
Councilmember Gorham asked about the fence material.
Public Works Director Brown stated that he has some photos that he can distribute to the Council
that show the fencing but noted that it is an anti -scalable style fence that is twelve feet high. He
noted that it is expected that the public works departments in the lake area would train together
as a rapid response team and explained that the goal is to have the fence erected within twelve
hours of any event.
Mayor Labadie noted that she had attended the Regional Council of Mayors meeting earlier today
with mayors from around the metro and outlying suburbs. She stated that their topic of discussion
today was stormwater management, water management within the cities, and noted that the
overall consensus was that cities need to think in advance of a crisis or flooding.
11. ADJOURN
Johnson moved, Gorham seconded, Adjourning the City Council Regular Meeting of May
9, 2022, at 8:36 P.M. All in favor, motion passed.
ATTEST: a44�4a4j _i2
JeAnifej Labadie, Mayor
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Sandie Thone, City Clerk